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1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 848 \n\line \n\line
1.2A bill for an act \n\line \n\line
1.3relating to financing and operation of state and local government; making \n\line 1.4changes to individual income, corporate franchise, property, sales and use, \n\line 1.5excise, estate, mineral, tobacco, gambling, special, local, and other taxes and \n\line 1.6tax-related provisions; providing for long-term care savings plans; modifying \n\line 1.7business income tax credits; modifying income tax subtractions and additions; \n\line 1.8modifying the definition of resident for income tax purposes; modifying \n\line 1.9the dependent care credit, education credit, and research credit; providing \n\line 1.10credits for MNsure premium payments, attaining a master's degree, student \n\line 1.11loan payments, college savings plans, and job training centers; modifying \n\line 1.12reciprocity provisions; providing an additional personal and dependent \n\line 1.13exemption; allowing a reverse referendum for property tax levies under certain \n\line 1.14circumstances; modifying dates for local referenda related to spending; changing \n\line 1.15proposed levy certification dates for special taxing districts; modifying general \n\line 1.16property tax provisions; providing for joint county and township assessment \n\line 1.17agreements; modifying the definition of agricultural homestead; modifying \n\line 1.18property classification definitions; permanently extending the market value \n\line 1.19exclusion for surviving spouses of deceased service members and permanently \n\line 1.20disabled veterans; modifying provisions for appeals and equalizations courses; \n\line 1.21providing a tax credit for overvalued property; modifying and phasing out the \n\line 1.22state general levy; modifying proposed levy provisions; modifying due dates \n\line 1.23for property taxes; changing withdrawal procedures for the Sustainable Forest \n\line 1.24Incentive Program; authorizing valuation exclusion for certain improvements \n\line 1.25to homestead and commercial-industrial property; providing an increased estate \n\line 1.26tax exemption amount and other estate tax provisions; providing for certain \n\line 1.27economic development projects; providing for the Minnesota New Markets Jobs \n\line 1.28Act; restricting expenditures and other powers related to certain rail projects; \n\line 1.29providing for additional border city zone allocations; modifying general tax \n\line 1.30increment financing provisions; modifying provisions for the Destination Medical \n\line 1.31Center; modifying general and local sales and use tax provisions; modifying sales \n\line 1.32tax definitions and refunds related to petroleum and special fuel, durable medical \n\line 1.33equipment, instructional materials, propane tanks, bullion, capital equipment, \n\line 1.34and nonprofit groups; providing for a vendor allowance; providing exemptions \n\line 1.35for animal shelters, city celebrations, BMX tracks, and certain building and \n\line 1.36construction materials; repealing the tax on digital products; providing a separate \n\line 1.37rate for certain modular housing; modifying gambling taxes; providing a \n\line 1.38definition and rate of tax for vapor products under the tobacco tax; modifying \n\line 1.39cigarette stamp provisions; modifying rates for pull tabs sold at bingo halls; \n\line 1.40modifying miscellaneous tax provisions; modifying sales tax deposits, accounts, \n\line 1.41and provisions for transportation purposes; modifying local government aids \n\line 1.42and credits; providing for a school building bond agricultural credit; modifying \n\line 1.43assessor accreditation; accelerating the repeal of MinnesotaCare provider taxes; \n\line 2.1creating a county program aid working group; establishing trust fund accounts; \n\line 2.2providing trust fund payments to counties; modifying provisions related to \n\line 2.3payments in lieu of taxes for natural resources land; repealing the political \n\line 2.4contribution refund; making various conforming and technical changes; requiring \n\line 2.5reports; appropriating money;amending Minnesota Statutes 2014, sections \n\line 2.616A.726; 40A.18, subdivision 2; 62V.05, subdivision 5; 97A.055, subdivision \n\line 2.72; 97A.056, subdivision 1a, by adding subdivisions; 116J.8737, subdivisions 5, \n\line 2.812; 116P.02, subdivision 1, by adding a subdivision; 123B.63, subdivision 3; \n\line 2.9126C.17, subdivision 9; 205.10, subdivision 1; 205A.05, subdivision 1; 216B.46; \n\line 2.10237.19; 270A.03, subdivision 7; 270B.14, subdivision 17; 270C.13, subdivision \n\line 2.111; 270C.9901; 273.061, subdivision 4; 273.072, by adding a subdivision; \n\line 2.12273.124, subdivision 14; 273.13, subdivisions 23, 25, 34; 274.014, subdivision \n\line 2.132; 275.025; 275.065, subdivisions 1, 3; 275.07, subdivisions 1, 2; 275.08, \n\line 2.14subdivision 1b; 275.60; 276.04, subdivisions 1, 2; 278.12; 279.01, subdivisions \n\line 2.151, 3; 279.37, subdivision 2; 282.01, subdivision 4; 282.261, subdivision 2; \n\line 2.16289A.02, subdivision 7, as amended; 289A.10, subdivision 1; 289A.12, by \n\line 2.17adding a subdivision; 289A.20, subdivision 4; 289A.50, subdivision 1; 290.01, \n\line 2.18subdivisions 6, 7, 19, as amended, 19a, 19b, 19d, 29, 31, as amended; 290.06, \n\line 2.19by adding subdivisions; 290.067, subdivision 1; 290.0671, subdivisions 1, 6a; \n\line 2.20290.0672, subdivision 2; 290.0674, subdivisions 1, 2, by adding a subdivision; \n\line 2.21290.0677, subdivision 2; 290.068, subdivisions 1, 3, 6a, by adding a subdivision; \n\line 2.22290.081; 290.091, subdivision 2; 290.191, subdivision 5; 290A.03, subdivision \n\line 2.2315, as amended; 290C.10; 291.005, subdivision 1, as amended; 291.016, \n\line 2.24subdivision 3; 291.03, subdivisions 1, 1d; 296A.01, subdivision 12; 296A.08, \n\line 2.25subdivision 2; 296A.16, subdivision 2; 297A.61, subdivisions 3, 4, 38; 297A.62, \n\line 2.26subdivision 3; 297A.668, subdivisions 1, 2, 6a, 7; 297A.669, subdivision 14a; \n\line 2.27297A.67, subdivisions 7a, 13a, by adding subdivisions; 297A.68, subdivisions \n\line 2.285, 19; 297A.70, subdivisions 4, 10, 14, by adding subdivisions; 297A.71, by \n\line 2.29adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.77, subdivision \n\line 2.303; 297A.815, subdivision 3; 297A.94; 297A.992, subdivisions 1, 6, 6a, by \n\line 2.31adding a subdivision; 297A.994, subdivision 4; 297E.02, subdivisions 1, 6; \n\line 2.32297F.01, subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by \n\line 2.33adding subdivisions; 297F.06, subdivisions 1, 4; 297F.08, subdivisions 5, 7, 8; \n\line 2.34297F.09, subdivision 1; 297I.20, by adding a subdivision; 298.24, subdivision \n\line 2.351; 309.53, subdivision 3; 345.42, by adding a subdivision; 349.12, by adding a \n\line 2.36subdivision; 412.221, subdivision 2; 412.301; 426.19, subdivision 2; 447.045, \n\line 2.37subdivisions 2, 3, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision 1; \n\line 2.38469.053, subdivision 5; 469.0724; 469.107, subdivision 2; 469.169, by adding \n\line 2.39a subdivision; 469.174, subdivisions 12, 14; 469.175, subdivision 3; 469.176, \n\line 2.40subdivisions 4, 4c; 469.1761, by adding a subdivision; 469.1763, subdivisions 1, \n\line 2.412, 3; 469.178, subdivision 7; 469.190, subdivisions 1, 5; 469.40, subdivision 11, \n\line 2.42as amended; 469.43, by adding a subdivision; 469.45, subdivisions 1, 2; 469.47, \n\line 2.43subdivision 4, as amended; 471.57, subdivision 3; 471.571, subdivision 3; \n\line 2.44471.572, subdivisions 2, 4; 473.13, by adding a subdivision; 473.39, by adding a \n\line 2.45subdivision; 473.446, subdivision 1; 473H.09; 473H.17, subdivision 1a; 475.59; \n\line 2.46477A.013, subdivision 10, by adding a subdivision; 477A.017, subdivision 2, \n\line 2.47by adding a subdivision; 477A.03, subdivisions 2a, 2b; 477A.10; 477A.11, by \n\line 2.48adding subdivisions; 609.5316, subdivision 3; 611.27, subdivisions 13, 15; \n\line 2.49Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; \n\line 2.50Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as \n\line 2.51amended, 5, 6; Laws 1996, chapter 471, article 3, section 51; Laws 1999, chapter \n\line 2.52243, article 4, section 18, subdivision 1, as amended; Laws 2008, chapter 366, \n\line 2.53article 7, section 20; Laws 2009, chapter 88, article 5, section 17, as amended; \n\line 2.54Laws 2011, First Special Session chapter 9, article 6, section 97, subdivision \n\line 2.556; Laws 2014, chapter 308, article 6, section 7; proposing coding for new law \n\line 2.56in Minnesota Statutes, chapters 11A; 16A; 16B; 116J; 116P; 117; 273; 274; \n\line 2.57275; 290; 297A; 416; 459; 473; 477A; 609; proposing coding for new law as \n\line 2.58Minnesota Statutes, chapter 116X; repealing Minnesota Statutes 2014, sections \n\line 3.110A.322, subdivision 4; 13.4967, subdivision 2; 205.10, subdivision 3; 290.06, \n\line 3.2subdivision 23; 290.067, subdivisions 2, 2a, 2b; 297A.61, subdivisions 50, 51, \n\line 3.352, 53, 54, 55, 56; 297A.992, subdivision 12; 297F.05, subdivision 1a; 477A.017, \n\line 3.4subdivision 3; 477A.085; 477A.19; Minnesota Rules, part 4503.1400, subpart 4. \n\line 3.5May 22, 2016 \n\line 3.6The Honorable Kurt L. Daudt \n\line 3.7Speaker of the House of Representatives \n\line 3.8The Honorable Sandra L. Pappas \n\line 3.9President of the Senate \n\line 3.10We, the undersigned conferees for H. F. No. 848 report that we have agreed upon the \n\line 3.11items in dispute and recommend as follows: \n\line 3.12That the Senate recede from its amendments and that H. F. No. 848 be further \n\line 3.13amended as follows: \n\line 3.14Delete everything after the enacting clause and insert: \n\line \n\line
3.15"ARTICLE 1 \n\line \n\line
\n\line
3.16PROPERTY TAX \n\line \n\line
\n\line 3.17 Section 1. {\ul [103C.333] COUNTY LEVY AUTHORITY.} \n\line 3.18{\ul Notwithstanding any other law to the contrary, a county levying a tax under section } \n\line 3.19{\ul 103C.331 shall not include any taxes levied under those authorities in the levy certified } \n\line 3.20{\ul under section 275.07, subdivision 1, paragraph (a). A county levying under section } \n\line 3.21{\ul 103C.331 shall separately certify that amount, and the auditor shall extend that levy as a } \n\line 3.22{\ul special taxing district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).} \n\line 3.23{\ul EFFECTIVE DATE.}{\ul This section is effective for certifications made in 2016 and } \n\line 3.24{\ul thereafter.} \n\line \n\line 3.25 Sec. 2. Minnesota Statutes 2014, section 138.053, is amended to read: \n\line 3.26138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR \n\line 3.27TOWNS. \n\line 3.28 The governing body of any home rule charter or statutory city or town may annually \n\line 3.29appropriate from its general fund an amount not to exceed 0.02418 percent of estimated \n\line 3.30market value, derived from ad valorem taxes on property or other revenues, to be paid to \n\line 3.31the historical society of its respective {\ul city, town, or }county to be used for the promotion of \n\line 3.32historical work and to aid in defraying the expenses of carrying on the historical work in the \n\line 3.33county. No city or town may appropriate any funds for the benefit of any historical society \n\line 3.34unless the society is affiliated with and approved by the Minnesota Historical Society. \n\line 3.35{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 4.1 Sec. 3. {\ul [216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE } \n\line 4.2{\ul ASSOCIATION.} \n\line 4.3{\ul A cooperative electric association that has elected to be subject to rate regulation } \n\line 4.4{\ul under section 216B.026 is eligible to file with the commission for approval of an } \n\line 4.5{\ul adjustment for real and personal property taxes, fees, and permits.} \n\line 4.6{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 4.7 Sec. 4. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision \n\line 4.8to read: \n\line 4.9 {\ul Subd. 100.} {\ul Electric generation facility; personal property.} {\ul (a) Notwithstanding } \n\line 4.10{\ul subdivision 9, clause (a), attached machinery, transformers, and other personal property } \n\line 4.11{\ul that (1) is part of a natural gas-fired combined heat and power facility, (2) generates } \n\line 4.12{\ul electricity and steam for at least partial consumption as part of an industrial use, including } \n\line 4.13{\ul corn processing, (3) is less than 80,000 kilowatts of installed capacity, and (4) meets the } \n\line 4.14{\ul requirements of this subdivision, are exempt.} \n\line 4.15{\ul (b) At the time of construction, the facility must:} \n\line 4.16{\ul (1) be designed to utilize natural gas as a primary fuel;} \n\line 4.17{\ul (2) not be owned by a public utility as defined in section 216B.02, subdivision 4;} \n\line 4.18{\ul (3) be located within 15 miles of an existing natural gas pipeline and within one mile } \n\line 4.19{\ul of an existing electrical transmission substation; and} \n\line 4.20{\ul (4) be located outside the metropolitan area as defined in section 473.121, } \n\line 4.21{\ul subdivision 2.} \n\line 4.22{\ul (c) Construction of the facility must commence after January 1, 2015, and } \n\line 4.23{\ul before January 1, 2019. Property eligible for this exemption does not include electric } \n\line 4.24{\ul transmission lines and interconnections, or gas pipelines and interconnections, appurtenant } \n\line 4.25{\ul to the property or the facility.} \n\line 4.26{\ul (d) In lieu of personal property taxes each year, the owner of the combined heat and } \n\line 4.27{\ul power facility shall pay a base payment of 0.14 cents per kilowatt-hour of electricity } \n\line 4.28{\ul produced by the facility during the previous calendar year. In addition to the base payment } \n\line 4.29{\ul and in lieu of personal property taxes each year, the owner of the combined heat and power } \n\line 4.30{\ul facility shall pay an additional payment of 0.08 cents per kilowatt-hour of electricity } \n\line 4.31{\ul produced by the facility during the previous calendar year if, during the previous calendar } \n\line 4.32{\ul year, the host township or city had an agreement with a municipal utilities commission } \n\line 4.33{\ul to share the cost of acquiring, developing, and marketing land for industrial purposes, } \n\line 4.34{\ul and under such agreement both the host township or city and the municipal utilities } \n\line 4.35{\ul commission provided funds during the previous calendar year as part of a cost-sharing } \n\line 5.1{\ul agreement. The additional payment to be paid by the owner of the combined heat and } \n\line 5.2{\ul power facility shall be the lesser of 0.08 cents per kilowatt-hour of electricity produced } \n\line 5.3{\ul by the facility or 57 percent of the amount funded by the host township or city during } \n\line 5.4{\ul the previous calendar year pursuant to the aforementioned cost-sharing agreement. The } \n\line 5.5{\ul payments imposed under this section shall be paid to the county treasurer for the benefit of } \n\line 5.6{\ul the host township or city, at the time and in the manner provided for payment of property } \n\line 5.7{\ul taxes under section 277.01, subdivision 3. If unpaid, the payments are subject to the same } \n\line 5.8{\ul enforcement, collection, and interest and penalties as delinquent personal property taxes. } \n\line 5.9{\ul Except to the extent inconsistent with this section, sections 277.01 to 277.24 and 278.01 } \n\line 5.10{\ul to 278.13 apply to the payments imposed under this section, and for purposes of those } \n\line 5.11{\ul sections the payments imposed under this section are considered personal property taxes.} \n\line 5.12{\ul (e) The owner of the combined heat and power facility shall file a report with the } \n\line 5.13{\ul commissioner of revenue annually on or before February 1, detailing the amount of } \n\line 5.14{\ul electricity in kilowatt-hours that was produced by the facility and the amount funded by } \n\line 5.15{\ul the host township or city in accordance with the cost-sharing agreement described in } \n\line 5.16{\ul paragraph (d) during the previous calendar year. The commissioner shall prescribe the } \n\line 5.17{\ul form of the report. The report must contain the information required by the commissioner } \n\line 5.18{\ul to determine the payments due under this section payable in the current year. If an owner } \n\line 5.19{\ul of the facility subject to taxation under this section fails to file the report by the due date, } \n\line 5.20{\ul the commissioner of revenue shall determine the payments based upon the nameplate } \n\line 5.21{\ul capacity of the system multiplied by a capacity factor of 85 percent.} \n\line 5.22{\ul EFFECTIVE DATE.}{\ul This section is effective for taxes payable beginning in 2017 } \n\line 5.23{\ul and thereafter.} \n\line \n\line 5.24 Sec. 5. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision \n\line 5.25to read: \n\line 5.26 {\ul Subd. 101.} {\ul Electric generation facility; personal property.} {\ul (a) Notwithstanding } \n\line 5.27{\ul subdivision 9, clause (a), attached machinery and other personal property that is part of an } \n\line 5.28{\ul electric generation facility with more than 35 megawatts and less than 40 megawatts of } \n\line 5.29{\ul installed capacity and that meets the requirements of this subdivision is exempt from taxes } \n\line 5.30{\ul and payments in lieu of taxes. The facility must:} \n\line 5.31{\ul (1) be designed to utilize natural gas as a primary fuel;} \n\line 5.32{\ul (2) be owned and operated by a municipal power agency as defined in section } \n\line 5.33{\ul 453.52, subdivision 8;} \n\line 5.34{\ul (3) be located within 800 feet of an existing natural gas pipeline;} \n\line 6.1{\ul (4) satisfy a resource deficiency identified in an approved integrated resource plan } \n\line 6.2{\ul filed under section 216B.2422;} \n\line 6.3{\ul (5) be located outside the metropolitan area as defined under section 473.121, } \n\line 6.4{\ul subdivision 2; and} \n\line 6.5{\ul (6) have received, by resolution, the approval of the governing bodies of the city } \n\line 6.6{\ul and county in which it is located for the exemption of personal property provided by } \n\line 6.7{\ul this subdivision.} \n\line 6.8{\ul (b) Construction of the facility must have been commenced after January 1, 2015, } \n\line 6.9{\ul and before January 1, 2016. Property eligible for this exemption does not include electric } \n\line 6.10{\ul transmission lines and interconnections or gas pipelines and interconnections appurtenant } \n\line 6.11{\ul to the property or the facility.} \n\line 6.12{\ul EFFECTIVE DATE.}{\ul This section is effective for taxes payable in 2017 and } \n\line 6.13{\ul thereafter.} \n\line \n\line 6.14 Sec. 6. Minnesota Statutes 2014, section 272.162, is amended to read: \n\line 6.15272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS. \n\line 6.16 Subdivision 1. Conditions restricting transfer. When a deed or other instrument \n\line 6.17conveying a parcel of land is presented to the county auditor for transfer or division under \n\line 6.18sections \n\line 272.12, \n\line 272.16, and \n\line 272.161, the auditor shall not transfer or divide the land or its \n\line 6.19net tax capacity in the official records and shall not certify the instrument as provided in \n\line 6.20section \n\line 272.12, if: \n\line 6.21(a) The land conveyed is less than a whole parcel of land as charged in the tax lists; \n\line 6.22(b) The part conveyed appears within the area of application of municipal {\ul or } \n\line 6.23{\ul county} subdivision regulations adopted and filed under {\ul section 394.35 or }section \n\line 462.36, \n\line 6.24subdivision 1\n\line ; and \n\line 6.25(c) The part conveyed is part of or constitutes a subdivision as defined in section \n\line \n\line 6.26462.352, subdivision 12\n\line . \n\line 6.27 Subd. 2. Conditions allowing transfer. {\ul (a) }Notwithstanding the provisions of \n\line 6.28subdivision 1, the county auditor may transfer or divide the land and its net tax capacity \n\line 6.29and may certify the instrument if the instrument contains a certification by the clerk of \n\line 6.30the municipality{\ul or designated county planning official}: \n\line 6.31{\strike (a)}{\ul (1)} that the municipality's{\ul or county's} subdivision regulations do not apply; \n\line 6.32{\strike (b)}{\ul (2)} that the subdivision has been approved by the governing body of the \n\line 6.33municipality{\ul or county}; or \n\line 7.1{\strike (c)}{\ul (3)} that the restrictions on the division of taxes and filing and recording have \n\line 7.2been waived by resolution of the governing body of the municipality {\ul or county }in the \n\line 7.3particular case because compliance would create an unnecessary hardship and failure to \n\line 7.4comply would not interfere with the purpose of the regulations. \n\line 7.5{\ul (b) }If any of the conditions for certification by the municipality{\ul or county} as provided \n\line 7.6in this subdivision exist and the municipality{\ul or county} does not certify that they exist \n\line 7.7within 24 hours after the instrument of conveyance has been presented to the clerk of \n\line 7.8the municipality{\ul or designated county planning official}, the provisions of subdivision 1 \n\line 7.9do not apply. \n\line 7.10{\ul (c) }If an unexecuted instrument is presented to the municipality {\ul or county }and \n\line 7.11any of the conditions for certification by the municipality {\ul or county }as provided in \n\line 7.12this subdivision exist, the unexecuted instrument must be certified by the clerk of the \n\line 7.13municipality{\ul or the designated county planning official}. \n\line 7.14 Subd. 3. Applicability of restrictions. {\ul (a) }This section does not apply to the \n\line 7.15exceptions set forth in section \n\line 272.12. \n\line 7.16{\ul (b) }This section applies only to land within municipalities {\ul or counties }which choose \n\line 7.17to be governed by its provisions. A municipality {\ul or county }may choose to have this \n\line 7.18section apply to the property within its boundaries by filing a certified copy of a resolution \n\line 7.19of its governing body making that choice with the auditor and recorder of the county in \n\line 7.20which it is located. \n\line 7.21{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 7.22 Sec. 7. Minnesota Statutes 2014, section 273.13, subdivision 34, is amended to read: \n\line 7.23 Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a \n\line 7.24portion of the market value of property owned by a veteran and serving as the veteran's \n\line 7.25homestead under this section is excluded in determining the property's taxable market \n\line 7.26value if the veteran has a service-connected disability of 70 percent or more as certified \n\line 7.27by the United States Department of Veterans Affairs. To qualify for exclusion under this \n\line 7.28subdivision, the veteran must have been honorably discharged from the United States \n\line 7.29armed forces, as indicated by United States Government Form DD214 or other official \n\line 7.30military discharge papers. \n\line 7.31 (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is \n\line 7.32excluded, except as provided in clause (2); and \n\line 7.33 (2) for a total (100 percent) and permanent disability, $300,000 of market value is \n\line 7.34excluded. \n\line 8.1 (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), \n\line 8.2clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the \n\line 8.3spouse holds the legal or beneficial title to the homestead and permanently resides there, \n\line 8.4the exclusion shall carry over to the benefit of the veteran's spouse {\strike for the current taxes } \n\line 8.5{\strike payable year and for eight additional taxes payable years or} until such time as the spouse \n\line 8.6remarries, or sells, transfers, or otherwise disposes of the property{\strike , whichever comes first}. \n\line 8.7Qualification under this paragraph requires an annual application under paragraph (h). \n\line 8.8(d) If the spouse of a member of any branch or unit of the United States armed \n\line 8.9forces who dies due to a service-connected cause while serving honorably in active \n\line 8.10service, as indicated on United States Government Form DD1300 or DD2064, holds \n\line 8.11the legal or beneficial title to a homestead and permanently resides there, the spouse is \n\line 8.12entitled to the benefit described in paragraph (b), clause (2), {\strike for eight taxes payable years, } \n\line 8.13{\strike or} until such time as the spouse remarries or sells, transfers, or otherwise disposes of the \n\line 8.14property{\strike , whichever comes first}. \n\line 8.15(e) If a veteran meets the disability criteria of paragraph (a) but does not own \n\line 8.16property classified as homestead in the state of Minnesota, then the homestead of the \n\line 8.17veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran \n\line 8.18would otherwise qualify for under paragraph (b). \n\line 8.19 (f) In the case of an agricultural homestead, only the portion of the property \n\line 8.20consisting of the house and garage and immediately surrounding one acre of land qualifies \n\line 8.21for the valuation exclusion under this subdivision. \n\line 8.22 (g) A property qualifying for a valuation exclusion under this subdivision is not \n\line 8.23eligible for the market value exclusion under subdivision 35, or classification under \n\line 8.24subdivision 22, paragraph (b). \n\line 8.25 (h) To qualify for a valuation exclusion under this subdivision a property owner \n\line 8.26must apply to the assessor by July 1 of each assessment year, except that an annual \n\line 8.27reapplication is not required once a property has been accepted for a valuation exclusion \n\line 8.28under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and \n\line 8.29the property continues to qualify until there is a change in ownership. For an application \n\line 8.30received after July 1 of any calendar year, the exclusion shall become effective for the \n\line 8.31following assessment year. \n\line 8.32(i) A first-time application by a qualifying spouse for the market value exclusion under \n\line 8.33paragraph (d) must be made any time within two years of the death of the service member. \n\line 8.34(j) For purposes of this subdivision: \n\line 8.35(1) "active service" has the meaning given in section \n\line 190.05; \n\line 8.36(2) "own" means that the person's name is present as an owner on the property deed; \n\line 9.1(3) "primary family caregiver" means a person who is approved by the secretary of \n\line 9.2the United States Department of Veterans Affairs for assistance as the primary provider \n\line 9.3of personal care services for an eligible veteran under the Program of Comprehensive \n\line 9.4Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G; \n\line 9.5and \n\line 9.6(4) "veteran" has the meaning given the term in section \n\line 197.447. \n\line 9.7(k) The purpose of this provision of law providing a level of homestead property tax \n\line 9.8relief for gravely disabled veterans, their primary family caregivers, and their surviving \n\line 9.9spouses is to help ease the burdens of war for those among our state's citizens who bear \n\line 9.10those burdens most heavily. \n\line 9.11{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 9.12 Sec. 8. Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read: \n\line 9.13 Subdivision 1. Levy amount. The state general levy is levied against \n\line 9.14commercial-industrial property and seasonal residential recreational property, as defined \n\line 9.15in this section. The state general levy base amount {\ul for commercial-industrial property }is \n\line 9.16{\strike $592,000,000}{\ul $762,664,000} for taxes payable in {\strike 2002}{\ul 2017. The state general levy base } \n\line 9.17{\ul amount for seasonal-recreational property is $43,111,000 for taxes payable in 2017}. For \n\line 9.18taxes payable in subsequent years, {\strike the}{\ul each} levy base amount is increased each year by \n\line 9.19multiplying the levy base amount for the prior year by the sum of one plus the rate of \n\line 9.20increase, if any, in the implicit price deflator for government consumption expenditures \n\line 9.21and gross investment for state and local governments prepared by the Bureau of Economic \n\line 9.22Analysts of the United States Department of Commerce for the 12-month period ending \n\line 9.23March 31 of the year prior to the year the taxes are payable. The tax under this section is \n\line 9.24not treated as a local tax rate under section \n\line 469.177 and is not the levy of a governmental \n\line 9.25unit under chapters 276A and 473F. \n\line 9.26The commissioner shall increase or decrease the preliminary or final {\strike rate}{\ul rates} for a \n\line 9.27year as necessary to account for errors and tax base changes that affected a preliminary or \n\line 9.28final rate for either of the two preceding years. Adjustments are allowed to the extent that \n\line 9.29the necessary information is available to the commissioner at the time the rates for a year \n\line 9.30must be certified, and for the following reasons: \n\line 9.31(1) an erroneous report of taxable value by a local official; \n\line 9.32(2) an erroneous calculation by the commissioner; and \n\line 9.33(3) an increase or decrease in taxable value for commercial-industrial or seasonal \n\line 9.34residential recreational property reported on the abstracts of tax lists submitted under \n\line 10.1section \n\line 275.29 that was not reported on the abstracts of assessment submitted under \n\line 10.2section \n\line 270C.89 for the same year. \n\line 10.3The commissioner may, but need not, make adjustments if the total difference in the tax \n\line 10.4levied for the year would be less than $100,000. \n\line 10.5{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 10.6 Sec. 9. Minnesota Statutes 2014, section 275.025, subdivision 2, is amended to read: \n\line 10.7 Subd. 2. Commercial-industrial tax capacity. For the purposes of this section, \n\line 10.8"commercial-industrial tax capacity" means the tax capacity of all taxable property \n\line 10.9classified as class 3 or class 5(1) under section \n\line 273.13, {\strike except for}{\ul excluding: (1) the first } \n\line 10.10{\ul $100,000 of market value of each parcel of commercial-industrial net tax capacity as } \n\line 10.11{\ul defined under section 273.13, subdivision 24, clauses (1) and (2); (2) } electric generation \n\line 10.12attached machinery under class 3{\ul ;} and {\ul (3) }property described in section \n\line 473.625. County \n\line 10.13commercial-industrial tax capacity amounts are not adjusted for the captured net tax \n\line 10.14capacity of a tax increment financing district under section \n\line 469.177, subdivision 2, the \n\line 10.15net tax capacity of transmission lines deducted from a local government's total net tax \n\line 10.16capacity under section \n\line 273.425, or fiscal disparities contribution and distribution net tax \n\line 10.17capacities under chapter 276A or 473F.{\ul For purposes of this subdivision, the procedures } \n\line 10.18{\ul for determining eligibility for tier 1 under section 273.13, subdivision 24, clause (1), } \n\line 10.19{\ul shall apply in determining the portion of a property eligible to be considered within the } \n\line 10.20{\ul first $100,000 of market value.} \n\line 10.21{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 10.22 Sec. 10. Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read: \n\line 10.23 Subd. 4. Apportionment and levy of state general tax. {\strike Ninety-five percent of} The \n\line 10.24state general tax must be levied by applying a uniform rate to all commercial-industrial tax \n\line 10.25capacity and {\strike five percent of the state general tax must be levied by applying} a uniform \n\line 10.26rate to all seasonal residential recreational tax capacity. On or before October 1 each year, \n\line 10.27the commissioner of revenue shall certify the preliminary state general levy rates to each \n\line 10.28county auditor that must be used to prepare the notices of proposed property taxes for taxes \n\line 10.29payable in the following year. By January 1 of each year, the commissioner shall certify the \n\line 10.30final state general levy {\strike rate}{\ul rates} to each county auditor that shall be used in spreading taxes. \n\line 10.31{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 10.32 Sec. 11. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read: \n\line 11.1 Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the \n\line 11.2contrary, on or before September 30, each county {\strike and each}{\ul ,} home rule charter or statutory \n\line 11.3city{\ul , and special taxing district, excluding the Metropolitan Council and the Metropolitan } \n\line 11.4{\ul Mosquito Control District,} shall certify to the county auditor the proposed property tax \n\line 11.5levy for taxes payable in the following year.{\ul The proposed levy certification date for } \n\line 11.6{\ul the Metropolitan Council shall be as prescribed in sections 473.249 and 473.446. The } \n\line 11.7{\ul proposed levy certification date for the Metropolitan Mosquito Control District shall be } \n\line 11.8{\ul as prescribed in section 473.711.} \n\line 11.9 (b) Notwithstanding any law or charter to the contrary, on or before September 15, \n\line 11.10each town {\strike and each special taxing district}{\ul , the Metropolitan Council, and the Metropolitan } \n\line 11.11{\ul Mosquito Control District} shall adopt and certify to the county auditor a proposed property \n\line 11.12tax levy for taxes payable in the following year. For towns, the final certified levy shall \n\line 11.13also be considered the proposed levy. \n\line 11.14 (c) On or before September 30, each school district that has not mutually agreed \n\line 11.15with its home county to extend this date shall certify to the county auditor the proposed \n\line 11.16property tax levy for taxes payable in the following year. Each school district that has \n\line 11.17agreed with its home county to delay the certification of its proposed property tax levy \n\line 11.18must certify its proposed property tax levy for the following year no later than October \n\line 11.197. The school district shall certify the proposed levy as: \n\line 11.20 (1) a specific dollar amount by school district fund, broken down between \n\line 11.21voter-approved and non-voter-approved levies and between referendum market value \n\line 11.22and tax capacity levies; or \n\line 11.23 (2) the maximum levy limitation certified by the commissioner of education \n\line 11.24according to section \n\line 126C.48, subdivision 1. \n\line 11.25 (d) If the board of estimate and taxation or any similar board that establishes \n\line 11.26maximum tax levies for taxing jurisdictions within a first class city certifies the maximum \n\line 11.27property tax levies for funds under its jurisdiction by charter to the county auditor by the \n\line 11.28date specified in paragraph (a), the city shall be deemed to have certified its levies for \n\line 11.29those taxing jurisdictions. \n\line 11.30 (e) For purposes of this section, "special taxing district" means a special taxing \n\line 11.31district as defined in section \n\line 275.066. Intermediate school districts that levy a tax \n\line 11.32under chapter 124 or 136D, joint powers boards established under sections \n\line 123A.44 to \n\line \n\line 11.33123A.446\n\line , and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are \n\line 11.34also special taxing districts for purposes of this section. \n\line 11.35(f) At the meeting at which a taxing authority, other than a town, adopts its proposed \n\line 11.36tax levy under this subdivision, the taxing authority shall announce the time and place \n\line 12.1of its subsequent regularly scheduled meetings at which the budget and levy will be \n\line 12.2discussed and at which the public will be allowed to speak. The time and place of those \n\line 12.3meetings must be included in the proceedings or summary of proceedings published in the \n\line 12.4official newspaper of the taxing authority under section \n\line 123B.09, \n\line 375.12, or \n\line 412.191. \n\line 12.5{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with proposed levy } \n\line 12.6{\ul certifications for taxes payable in 2017.} \n\line \n\line 12.7 Sec. 12. Minnesota Statutes 2014, section 275.066, is amended to read: \n\line 12.8275.066 SPECIAL TAXING DISTRICTS; DEFINITION. \n\line 12.9 For the purposes of property taxation and property tax state aids, the term "special \n\line 12.10taxing districts" includes the following entities: \n\line 12.11 (1) watershed districts under chapter 103D; \n\line 12.12 (2) sanitary districts under sections \n\line 442A.01 to \n\line 442A.29; \n\line 12.13 (3) regional sanitary sewer districts under sections \n\line 115.61 to \n\line 115.67; \n\line 12.14 (4) regional public library districts under section \n\line 134.201; \n\line 12.15 (5) park districts under chapter 398; \n\line 12.16 (6) regional railroad authorities under chapter 398A; \n\line 12.17 (7) hospital districts under sections \n\line 447.31 to \n\line 447.38; \n\line 12.18 (8) St. Cloud Metropolitan Transit Commission under sections \n\line 458A.01 to \n\line 458A.15; \n\line 12.19 (9) Duluth Transit Authority under sections \n\line 458A.21 to \n\line 458A.37; \n\line 12.20 (10) regional development commissions under sections \n\line 462.381 to \n\line 462.398; \n\line 12.21 (11) housing and redevelopment authorities under sections \n\line 469.001 to \n\line 469.047; \n\line 12.22 (12) port authorities under sections \n\line 469.048 to \n\line 469.068; \n\line 12.23 (13) economic development authorities under sections \n\line 469.090 to \n\line 469.1081; \n\line 12.24 (14) Metropolitan Council under sections \n\line 473.123 to \n\line 473.549; \n\line 12.25 (15) Metropolitan Airports Commission under sections \n\line 473.601 to \n\line 473.679; \n\line 12.26 (16) Metropolitan Mosquito Control Commission under sections \n\line 473.701 to \n\line 473.716; \n\line 12.27 (17) Morrison County Rural Development Financing Authority under Laws 1982, \n\line 12.28chapter 437, section 1; \n\line 12.29 (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6; \n\line 12.30 (19) East Lake County Medical Clinic District under Laws 1989, chapter 211, \n\line 12.31sections 1 to 6; \n\line 12.32 (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article \n\line 12.335, section 39; \n\line 13.1 (21) Middle Mississippi River Watershed Management Organization under sections \n\line \n\line 13.2103B.211\n\line and \n\line 103B.241; \n\line 13.3 (22) emergency medical services special taxing districts under section 144F.01; \n\line 13.4 (23) a county levying under the authority of section \n\line 103B.241, \n\line 103B.245, {\strike or } \n\line 13.5103B.251{\ul , or 103C.331}; \n\line 13.6 (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home \n\line 13.7under Laws 2003, First Special Session chapter 21, article 4, section 12; \n\line 13.8 (25) an airport authority created under section \n\line 360.0426; and \n\line 13.9 (26) any other political subdivision of the state of Minnesota, excluding counties, \n\line 13.10school districts, cities, and towns, that has the power to adopt and certify a property tax \n\line 13.11levy to the county auditor, as determined by the commissioner of revenue. \n\line 13.12{\ul EFFECTIVE DATE.}{\ul This section is effective for taxes payable in 2017 and } \n\line 13.13{\ul thereafter.} \n\line \n\line 13.14 Sec. 13. Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read: \n\line 13.15 Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b), \n\line 13.16the taxes voted by cities, counties, school districts, and special districts shall be certified \n\line 13.17by the proper authorities to the county auditor on or before five working days after \n\line 13.18December 20 in each year. A town must certify the levy adopted by the town board to \n\line 13.19the county auditor by September 15 each year. If the town board modifies the levy at a \n\line 13.20special town meeting after September 15, the town board must recertify its levy to the \n\line 13.21county auditor on or before five working days after December 20. If a city, town, county, \n\line 13.22school district, or special district fails to certify its levy by that date, its levy shall be the \n\line 13.23amount levied by it for the preceding year. \n\line 13.24(b)(i) The taxes voted by counties under sections \n\line 103B.241, \n\line 103B.245, {\strike and } \n\line 13.25103B.251{\ul , and 103C.331} shall be separately certified by the county to the county auditor \n\line 13.26on or before five working days after December 20 in each year. The taxes certified \n\line 13.27shall not be reduced by the county auditor by the aid received under section \n\line 273.1398, \n\line 13.28subdivision 3\n\line . If a county fails to certify its levy by that date, its levy shall be the amount \n\line 13.29levied by it for the preceding year. \n\line 13.30(ii) For purposes of the proposed property tax notice under section \n\line 275.065 and \n\line 13.31the property tax statement under section \n\line 276.04, for the first year in which the county \n\line 13.32implements the provisions of this paragraph, the county auditor shall reduce the county's \n\line 13.33levy for the preceding year to reflect any amount levied for water management purposes \n\line 13.34under clause (i) included in the county's levy. \n\line 14.1{\ul EFFECTIVE DATE.}{\ul This section is effective for taxes payable in 2017 and } \n\line 14.2{\ul thereafter.} \n\line \n\line 14.3 Sec. 14. Minnesota Statutes 2014, section 276.11, subdivision 1, is amended to read: \n\line 14.4 Subdivision 1. Generally. As soon as practical after the settlement day determined \n\line 14.5in section \n\line 276.09, the county treasurer shall pay to the treasurer of a town, city, school \n\line 14.6district, or special district, on the warrant of the county auditor, all receipts of taxes levied \n\line 14.7by the taxing district and deliver up all orders and other evidences of indebtedness of \n\line 14.8the taxing district, taking triplicate receipts for them. The treasurer shall file one of the \n\line 14.9receipts with the county auditor, and shall return one by mail on the day of its receipt to \n\line 14.10the clerk of the town, city, school district, or special district to which payment was made. \n\line 14.11The clerk shall keep the receipt in the clerk's office. Upon written request of the taxing \n\line 14.12district, to the extent practicable, the county treasurer shall make partial payments of \n\line 14.13amounts collected periodically in advance of the next settlement and distribution. A \n\line 14.14statement prepared by the county treasurer must accompany each payment. It must state \n\line 14.15the years for which taxes included in the payment were collected and, for each year, the \n\line 14.16amount of the taxes and any penalties on the tax. Upon written request of a taxing district, \n\line 14.17except school districts, the county treasurer shall pay at least 70 percent of the estimated \n\line 14.18collection within 30 days after the settlement date determined in section \n\line 276.09. Within \n\line 14.19{\strike seven}{\ul eight} business days after the due date, or 28 calendar days after the postmark date \n\line 14.20on the envelopes containing real or personal property tax statements, whichever is latest, \n\line 14.21the county treasurer shall pay to the treasurer of the school districts 50 percent of the \n\line 14.22estimated collections arising from taxes levied by and belonging to the school district, \n\line 14.23unless the school district elects to receive 50 percent of the estimated collections arising \n\line 14.24from taxes levied by and belonging to the school district after making a proportionate \n\line 14.25reduction to reflect any loss in collections as the result of any delay in mailing tax \n\line 14.26statements. In that case, 50 percent of those adjusted, estimated collections shall be paid \n\line 14.27by the county treasurer to the treasurer of the school district within seven business days of \n\line 14.28the due date. The remaining 50 percent of the estimated collections must be paid to the \n\line 14.29treasurer of the school district within the next seven business days of the later of the dates \n\line 14.30in the preceding sentence, unless the school district elects to receive the remainder of its \n\line 14.31estimated collections after a proportionate reduction has been made to reflect any loss in \n\line 14.32collections as the result of any delay in mailing tax statements. In that case, the remaining \n\line 14.3350 percent of those adjusted, estimated collections shall be paid by the county treasurer to \n\line 14.34the treasurer of the school district within 14 days of the due date. The treasurer shall pay \n\line 14.35the balance of the amounts collected to a municipal corporation or other body within 60 \n\line 15.1days after the settlement date determined in section \n\line 276.09. After 45 days interest at an \n\line 15.2annual rate of eight percent accrues and must be paid to the taxing district. Interest must \n\line 15.3be paid upon appropriation from the general revenue fund of the county. If not paid, it \n\line 15.4may be recovered by the taxing district, in a civil action. \n\line 15.5{\ul EFFECTIVE DATE.}{\ul This section is effective for property taxes payable in 2017 } \n\line 15.6{\ul and thereafter.} \n\line \n\line 15.7 Sec. 15. Minnesota Statutes 2014, section 276.111, is amended to read: \n\line 15.8276.111 DISTRIBUTIONS AND FINAL YEAR-END SETTLEMENT. \n\line 15.9Within {\strike seven}{\ul eight} business days after October 15, the county treasurer shall pay to \n\line 15.10the school districts 50 percent of the estimated collections arising from taxes levied by \n\line 15.11and belonging to the school district from the settlement day determined in section \n\line 276.09 \n\line 15.12to October 20. The remaining 50 percent of the estimated tax collections must be paid \n\line 15.13to the school district within the next seven business days. Within {\strike ten}{\ul 11} business days \n\line 15.14after November 15, the county treasurer shall pay to the school district 100 percent of the \n\line 15.15estimated collections arising from taxes levied by and belonging to the school districts \n\line 15.16from October 20 to November 20. \n\line 15.17Within {\strike ten}{\ul 11} business days after November 15, the county treasurer shall pay to \n\line 15.18each taxing district, except any school district, 100 percent of the estimated collections \n\line 15.19arising from taxes levied by and belonging to each taxing district from the settlement day \n\line 15.20determined in section \n\line 276.09 to November 20. \n\line 15.21On or before January 5, the county treasurer shall make full settlement with the \n\line 15.22county auditor of all receipts collected from the settlement day determined in section \n\line \n\line 15.23276.09\n\line to December 31. After subtracting any tax distributions that have been made to \n\line 15.24the taxing districts in October and November, the treasurer shall pay to each of the taxing \n\line 15.25districts on or before January 25, the balance of the tax amounts collected on behalf of \n\line 15.26each taxing district. Interest accrues at an annual rate of eight percent and must be paid to \n\line 15.27the taxing district if this final settlement amount is not paid by January 25. Interest must \n\line 15.28be paid upon appropriation from the general revenue fund of the county. If not paid, it \n\line 15.29may be recovered by the taxing district in a civil action. \n\line 15.30{\ul EFFECTIVE DATE.}{\ul This section is effective for property taxes payable in 2017 } \n\line 15.31{\ul and thereafter.} \n\line \n\line 15.32 Sec. 16. Minnesota Statutes 2014, section 278.12, is amended to read: \n\line 15.33278.12 REFUNDS OF OVERPAYMENT. \n\line 16.1If upon final determination the petitioner has paid more than the amount so \n\line 16.2determined to be due, judgment shall be entered in favor of the petitioner for such excess, \n\line 16.3and upon filing a copy thereof with the county auditor the auditor shall forthwith draw a \n\line 16.4warrant upon the county treasurer for the payment thereof; provided that, with the consent \n\line 16.5of the petitioner, the county auditor may, in lieu of drawing such warrant, issue to the \n\line 16.6petitioner a certificate stating the amount of such judgment, which amount may be used \n\line 16.7to apply upon any taxes due or to become due {\ul over a prescribed period of years} for the \n\line 16.8taxing district or districts whose taxes or assessments are reduced, or their successors in \n\line 16.9the event of a reorganization or reincorporation of any such taxing district. In the event the \n\line 16.10auditor shall issue a warrant for refund or certificates, the amount thereof shall be charged \n\line 16.11to the state and other taxing districts in proportion to the amount of their respective taxes \n\line 16.12included in the levy and deduct the same in the subsequent distribution of any tax proceeds \n\line 16.13to the state or such taxing districts, and upon receiving any such certificate in payment of \n\line 16.14other taxes, the amount thereof shall be distributed to the state and other taxing districts \n\line 16.15in proportion to the amount of their respective taxes included in the levy; provided that \n\line 16.16if in the judgment the levy of one or more of the districts be found to be illegal, to the \n\line 16.17extent that the tax so levied is reduced on account of the illegal levies, the amount to be \n\line 16.18charged back shall be charged to the districts and the amount thereof deducted from \n\line 16.19any distributions thereafter made to them. \n\line 16.20{\ul EFFECTIVE DATE.}{\ul This section is effective for refunds for overpayment of taxes } \n\line 16.21{\ul payable in 2016 and thereafter.} \n\line \n\line 16.22 Sec. 17. Minnesota Statutes 2014, section 278.14, subdivision 1, is amended to read: \n\line 16.23 Subdivision 1. Applicability. A county must pay a refund of a mistakenly billed \n\line 16.24tax as provided in this section. As used in this section, "mistakenly billed tax" means an \n\line 16.25amount of property tax that was billed, to the extent the amount billed exceeds the accurate \n\line 16.26tax amount due to a {\strike misclassification of the owner's property under section }\n\line {\strike 273.13}{\strike or a} \n\line 16.27mathematical error in the calculation of the tax on the owner's property, together with \n\line 16.28any penalty or interest paid on that amount. This section applies only to taxes payable \n\line 16.29in the current year and the two prior years. As used in this section, "mathematical error" \n\line 16.30is limited to an error in: \n\line 16.31(1) converting the market value of a property to tax capacity or to a referendum \n\line 16.32market value; \n\line 16.33(2) application of the tax rate as computed by the auditor under sections \n\line 275.08, \n\line 16.34subdivisions 1b, 1c, and 1d\n\line ; \n\line 276A.06, subdivisions 4 and 5; and \n\line 473F.07, subdivisions 4 \n\line 16.35and 5, to the property's tax capacity or referendum market value; or \n\line 17.1(3) calculation of or eligibility for a credit. \n\line 17.2{\strike The remedy provided under this section does not apply to a misclassification under } \n\line 17.3{\strike section }\n\line {\strike 273.13}{\strike that is due to the failure of the property owner to apply for the correct } \n\line 17.4{\strike classification as required by law.} \n\line 17.5{\ul EFFECTIVE DATE.}{\ul This section is effective based on property taxes payable in } \n\line 17.6{\ul 2017 and thereafter.} \n\line \n\line 17.7 Sec. 18. Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read: \n\line 17.8 Subdivision 1. Due dates; penalties. {\strike Except as provided in subdivisions 3 to 5, } \n\line 17.9{\strike on May 16 or 21 days after the postmark date on the envelope containing the property } \n\line 17.10{\strike tax statement, whichever is later, a penalty accrues and thereafter is charged upon all } \n\line 17.11{\strike unpaid taxes on real estate on the current lists in the hands of the county treasurer. The } \n\line 17.12{\ul (a) When the taxes against any tract or lot exceed $100, one-half of the amount of tax } \n\line 17.13{\ul due must be paid prior to May 16, and the remaining one-half must be paid prior to the } \n\line 17.14{\ul following October 16. If either tax amount is unpaid as of its due date, a} penalty is \n\line 17.15{\ul imposed }at a rate of two percent on homestead property {\strike until May 31} and four{\ul percent } \n\line 17.16{\ul on nonhomestead property. If complete payment has not been made by the first day of } \n\line 17.17{\ul the month following either due date, an additional penalty of two} percent on {\strike June 1. The } \n\line 17.18{\strike penalty on nonhomestead property is at a rate of four percent until May 31}{\ul homestead } \n\line 17.19{\ul property} and {\strike eight}{\ul four} percent on {\strike June 1. This penalty does not accrue until June 1 of } \n\line 17.20{\strike each year, or 21 days after the postmark date on the envelope containing the property } \n\line 17.21{\strike tax statements, whichever is later, on commercial use real property used for seasonal } \n\line 17.22{\strike residential recreational purposes and classified as class 1c or 4c, and on other commercial } \n\line 17.23{\strike use real property classified as class 3a, provided that over 60 percent of the gross income } \n\line 17.24{\strike earned by the enterprise on the class 3a property is earned during the months of May, } \n\line 17.25{\strike June, July, and August. In order for the first half of the tax due on class 3a property to be } \n\line 17.26{\strike paid after May 15 and before June 1, or 21 days after the postmark date on the envelope } \n\line 17.27{\strike containing the property tax statement, whichever is later, without penalty, the owner of } \n\line 17.28{\strike the property must attach an affidavit to the payment attesting to compliance with the } \n\line 17.29{\strike income provision of this subdivision}{\ul nonhomestead property is imposed}. Thereafter, \n\line 17.30for both homestead and nonhomestead property, on the first day of each {\ul subsequent } \n\line 17.31month {\strike beginning July 1, up to and including October 1 following}{\ul through December}, an \n\line 17.32additional penalty of one percent for each month accrues and is charged on all such unpaid \n\line 17.33taxes provided that {\strike if the due date was extended beyond May 15 as the result of any delay } \n\line 17.34{\strike in mailing property tax statements no additional penalty shall accrue if the tax is paid by } \n\line 17.35{\strike the extended due date. If the tax is not paid by the extended due date, then all penalties } \n\line 18.1{\strike that would have accrued if the due date had been May 15 shall be charged. When the taxes } \n\line 18.2{\strike against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or } \n\line 18.3{\strike 21 days after the postmark date on the envelope containing the property tax statement, } \n\line 18.4{\strike whichever is later; and, if so paid, no penalty attaches; the remaining one-half may be } \n\line 18.5{\strike paid at any time prior to October 16 following, without penalty; but, if not so paid, then } \n\line 18.6{\strike a penalty of two percent accrues thereon for homestead property and a penalty of four } \n\line 18.7{\strike percent on nonhomestead property. Thereafter, for homestead property, on the first day of } \n\line 18.8{\strike November an additional penalty of four percent accrues and on the first day of December } \n\line 18.9{\strike following, an additional penalty of two percent accrues and is charged on all such unpaid } \n\line 18.10{\strike taxes. Thereafter, for nonhomestead property, on the first day of November and December } \n\line 18.11{\strike following, an additional penalty of four percent for each month accrues and is charged on } \n\line 18.12{\strike all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days } \n\line 18.13{\strike after the postmark date on the envelope containing the property tax statement, whichever } \n\line 18.14{\strike is later, the same may be paid at any time prior to October 16, with accrued penalties to the } \n\line 18.15{\strike date of payment added, and thereupon no penalty attaches to the remaining one-half until } \n\line 18.16{\strike October 16 following}{\ul the penalty must not exceed eight percent in the case of homestead } \n\line 18.17{\ul property, or 12 percent in the case of nonhomestead property}. \n\line 18.18{\ul (b) If the property tax statement was not postmarked prior to April 25, the first } \n\line 18.19{\ul half payment due date in paragraph (a) shall be 21 days from the postmark date of the } \n\line 18.20{\ul property tax statement, and all penalties referenced in paragraph (a) shall be determined } \n\line 18.21{\ul with regard to the later due date.} \n\line 18.22{\ul (c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties } \n\line 18.23{\ul as specified in paragraph (a) or (b) for the first half payment shall apply to the entire } \n\line 18.24{\ul amount of the tax due.} \n\line 18.25{\ul (d) For commercial use real property used for seasonal residential recreational } \n\line 18.26{\ul purposes and classified as class 1c or 4c, and on other commercial use real property } \n\line 18.27{\ul classified as class 3a, provided that over 60 percent of the gross income earned by the } \n\line 18.28{\ul enterprise on the class 3a property is earned during the months of May, June, July, and } \n\line 18.29{\ul August, penalty does not accrue until June 1 of each year. For a class 3a property to } \n\line 18.30{\ul qualify for the later due date, the owner of the property must attach an affidavit to the } \n\line 18.31{\ul payment attesting to compliance with the income requirements of this paragraph. } \n\line 18.32 {\ul (e) }This section applies to payment of personal property taxes assessed against \n\line 18.33improvements to leased property, except as provided by section \n\line 277.01, subdivision 3. \n\line 18.34 {\ul (f) }A county may provide by resolution that in the case of a property owner that has \n\line 18.35multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in \n\line 18.36installments as provided in this subdivision. \n\line 19.1 {\ul (g) }The county treasurer may accept payments of more or less than the exact amount \n\line 19.2of a tax installment due. Payments must be applied first to the oldest installment that is due \n\line 19.3but which has not been fully paid. If the accepted payment is less than the amount due, \n\line 19.4payments must be applied first to the penalty accrued for the year or the installment being \n\line 19.5paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum \n\line 19.6payment required as a condition for filing an appeal under section \n\line 278.03 or any other law, \n\line 19.7nor does it affect the order of payment of delinquent taxes under section \n\line 280.39. \n\line 19.8{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 19.9 Sec. 19. Minnesota Statutes 2014, section 279.01, subdivision 2, is amended to read: \n\line 19.10 Subd. 2. Abatement of penalty. {\ul (a) }The county board may, with the concurrence \n\line 19.11of the county treasurer, delegate to the county treasurer the power to abate the penalty \n\line 19.12provided for late payment of taxes in the current year. Notwithstanding section \n\line 270C.86, \n\line 19.13if any county board so elects, the county treasurer may abate the penalty on finding that \n\line 19.14the imposition of the penalty would be unjust and unreasonable. \n\line 19.15{\ul (b) The county treasurer shall abate the penalty provided for late payment of taxes in } \n\line 19.16{\ul the current year if the property tax payment is delivered by mail to the county treasurer } \n\line 19.17{\ul and the envelope containing the payment is postmarked by the United States Postal } \n\line 19.18{\ul Service within one business day of the due date prescribed under this section, but only if } \n\line 19.19{\ul the property owner requesting the abatement has not previously received an abatement } \n\line 19.20{\ul of penalty for late payment of tax under this paragraph.} \n\line 19.21{\ul EFFECTIVE DATE.}{\ul This section is effective for property taxes payable in 2017 } \n\line 19.22{\ul and thereafter.} \n\line \n\line 19.23 Sec. 20. Minnesota Statutes 2014, section 279.01, subdivision 3, is amended to read: \n\line 19.24 Subd. 3. Agricultural property. {\strike (a)} In the case of class 1b agricultural homestead, \n\line 19.25class 2a agricultural homestead property, and class 2a agricultural nonhomestead property, \n\line 19.26no penalties shall attach to the second one-half property tax payment as provided in this \n\line 19.27section if paid by November 15. Thereafter {\strike for class 1b agricultural homestead and class } \n\line 19.28{\strike 2a homestead property, on November 16 following, a penalty of six percent shall accrue } \n\line 19.29{\strike and be charged on all such unpaid taxes and on December 1 following, an additional two } \n\line 19.30{\strike percent shall be charged on all such unpaid taxes. Thereafter for class 2a agricultural } \n\line 19.31{\strike nonhomestead property, on November 16 following, a penalty of eight percent shall accrue } \n\line 19.32{\strike and be charged on all such unpaid taxes and on December 1 following, an additional four } \n\line 20.1{\strike percent shall be charged on all such unpaid taxes}{\ul , penalties shall attach as provided in } \n\line 20.2{\ul subdivision 1}. \n\line 20.3If the owner of class 1b agricultural homestead or class 2a agricultural property \n\line 20.4receives a consolidated property tax statement that shows only an aggregate of the taxes \n\line 20.5and special assessments due on that property and on other property not classified as class \n\line 20.61b agricultural homestead or class 2a agricultural property, the aggregate tax and special \n\line 20.7assessments shown due on the property by the consolidated statement will be due on \n\line 20.8November 15. \n\line 20.9{\strike (b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class } \n\line 20.10{\strike 2b property that was subject to a second-half due date of November 15 for taxes payable } \n\line 20.11{\strike in 2009, the county shall not impose, or if imposed, shall abate penalty amounts in excess } \n\line 20.12{\strike of those that would apply as if the second-half due date were November 15.} \n\line 20.13{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 20.14 Sec. 21. Minnesota Statutes 2014, section 279.03, subdivision 2, is amended to read: \n\line 20.15 Subd. 2. {\ul Rate for }composite judgment{\ul ; rate for homestead composite judgment, } \n\line 20.16{\ul repurchase of forfeited homestead property, and sale of forfeited property}. (a) Except \n\line 20.17as provided in paragraph (b), amounts included in composite judgments authorized \n\line 20.18by section \n\line 279.37, subdivision 1, are subject to interest at the rate calculated under \n\line 20.19subdivision 1a. During each calendar year, interest shall accrue on the unpaid balance \n\line 20.20of the composite judgment from the time it is confessed until it is paid. The interest rate \n\line 20.21established at the time the judgment is confessed is fixed for the duration of that judgment. \n\line 20.22{\ul (b) The following amounts are subject to interest as provided in paragraph (c):} \n\line 20.23{\ul (1) amounts included in composite judgments on parcels classified as 1a or 1b } \n\line 20.24{\ul and used as the homestead of the owner;} \n\line 20.25{\ul (2) amounts in contracts for repurchase of property classified as 1a or 1b at the time } \n\line 20.26{\ul of forfeiture or at the time that the repurchase application is approved; and} \n\line 20.27{\ul (3) sales of forfeited property pursuant to section 282.01, subdivision 4.} \n\line 20.28{\strike (b) A confession of judgment covering any part of a parcel classified as 1a or 1b, } \n\line 20.29{\strike and used as the homestead of the owner, is subject to interest at the rate provided in } \n\line 20.30{\strike section }\n\line {\strike 279.37, subdivision 2}{\strike , paragraph (b). This paragraph does not apply to a relative } \n\line 20.31{\strike homestead under section }\n\line {\strike 273.124, subdivision 1}{\strike , paragraph (c).} \n\line 20.32{\ul (c) By October 15 each year the commissioner shall set the interest rate under this } \n\line 20.33{\ul subdivision at the greater of five percent or two percent above the prime rate charged } \n\line 20.34{\ul by banks during the six-month period ending on September 30 of that year, rounded to } \n\line 20.35{\ul the nearest full percent, provided that the rate must not exceed the maximum annum } \n\line 21.1{\ul rate specified under section 279.03, subdivision 1a. By November 1 of each year the } \n\line 21.2{\ul commissioner must certify the rate to the county auditor. The rate of interest becomes } \n\line 21.3{\ul effective on January 1 of the immediately succeeding year. The commissioner's } \n\line 21.4{\ul determination under this subdivision is not a rule subject to the Administrative Procedure } \n\line 21.5{\ul Act in chapter 14, including section 14.386.} \n\line 21.6{\ul (d) For the purposes of this subdivision, "prime rate charged by banks" means the } \n\line 21.7{\ul average predominant prime rate quoted by commercial banks to large businesses, as } \n\line 21.8{\ul determined by the Board of Governors of the Federal Reserve System.} \n\line 21.9{\ul EFFECTIVE DATE.}{\ul This section is effective for composite judgments, repurchase } \n\line 21.10{\ul contracts, and sales of forfeited property occurring after January 1, 2017.} \n\line \n\line 21.11 Sec. 22. Minnesota Statutes 2014, section 279.37, subdivision 2, is amended to read: \n\line 21.12 Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to \n\line 21.13whom the right to pay taxes has been given by statute, mortgage, or other agreement, may \n\line 21.14make and file with the county auditor of the county in which the parcel is located a written \n\line 21.15offer to pay the current taxes each year before they become delinquent, or to contest \n\line 21.16the taxes under chapter 278 and agree to confess judgment for the amount provided, as \n\line 21.17determined by the county auditor. By filing the offer, the owner waives all irregularities \n\line 21.18in connection with the tax proceedings affecting the parcel and any defense or objection \n\line 21.19which the owner may have to the proceedings, and also waives the requirements of any \n\line 21.20notice of default in the payment of any installment or interest to become due pursuant to \n\line 21.21the composite judgment to be so entered. Unless the property is subject to subdivision 1a, \n\line 21.22with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent taxes, \n\line 21.23costs, penalty, and interest, and (ii) tender all current year taxes and penalty due at the \n\line 21.24time the confession of judgment is entered. In the offer, the owner shall agree to pay the \n\line 21.25balance in nine equal installments, with interest as provided in section \n\line 279.03, payable \n\line 21.26annually on installments remaining unpaid from time to time, on or before December 31 \n\line 21.27of each year following the year in which judgment was confessed. \n\line 21.28(b) {\strike For property which qualifies under section }\n\line {\strike 279.03, subdivision 2}{\strike , paragraph (b), } \n\line 21.29{\strike each year the commissioner shall set the interest rate for offers made under paragraph (a) } \n\line 21.30{\strike at the greater of five percent or two percent above the prime rate charged by banks during } \n\line 21.31{\strike the six-month period ending on September 30 of that year, rounded to the nearest full } \n\line 21.32{\strike percent, provided that the rate must not exceed the maximum annum rate specified under } \n\line 21.33{\strike section }\n\line {\strike 279.03, subdivision 1a}{\strike . The rate of interest becomes effective on January 1 of the } \n\line 21.34{\strike immediately succeeding year. The commissioner's determination under this subdivision is } \n\line 21.35{\strike not a rule subject to the Administrative Procedure Act in chapter 14, including section } \n\line 22.1{\strike 14.386}{\strike . If a default occurs in the payments under any confessed judgment entered under } \n\line 22.2{\strike this paragraph, the taxes and penalties due are subject to the interest rate specified in section } \n\line 22.3{\strike 279.03}{\strike .}{\ul Amounts entered in judgment bear interest at the rate provided in section 279.03, } \n\line 22.4{\ul subdivision 1a, unless the parcel is classified as 1a or 1b, and is used as the homestead of } \n\line 22.5{\ul the owner, in which case the rate provided in section 279.03, subdivision 2, shall apply. } \n\line 22.6{\ul A parcel that is classified as relative homestead under section 273.124, subdivision 1, } \n\line 22.7{\ul paragraph (c), is subject to interest at the rate provided in section 279.03, subdivision 1a.} \n\line 22.8{\ul (c) Interest shall commence with the date the judgment is entered. During each } \n\line 22.9{\ul calendar year, interest shall accrue on the unpaid balance of the composite judgment } \n\line 22.10{\ul from the time it is confessed until it is paid. The interest rate established at the time the } \n\line 22.11{\ul judgment is confessed is fixed for the duration of that judgment.} \n\line 22.12{\ul (d) If a default occurs in the payments under any confessed judgment, the taxes and } \n\line 22.13{\ul penalties due are subject to the interest rate specified in section 279.03, subdivision 1a, } \n\line 22.14{\ul regardless of the classification of the parcel. }For the purposes of this subdivision{\strike : } \n\line 22.15{\strike (1) the term "prime rate charged by banks" means the average predominant prime } \n\line 22.16{\strike rate quoted by commercial banks to large businesses, as determined by the Board of } \n\line 22.17{\strike Governors of the Federal Reserve System; and } \n\line 22.18{\strike (2)} "default" means the cancellation of the confession of judgment due to \n\line 22.19nonpayment of the current year tax or failure to make any installment payment required by \n\line 22.20this confessed judgment within 60 days from the date on which payment was due. \n\line 22.21{\strike (c) The interest rate established at the time judgment is confessed is fixed for the } \n\line 22.22{\strike duration of the judgment. By October 15 of each year, the commissioner of revenue must } \n\line 22.23{\strike determine the rate of interest as provided under paragraph (b) and, by November 1 of each } \n\line 22.24{\strike year, must certify the rate to the county auditor.} \n\line 22.25{\strike (d)}{\ul (e)} A qualified property owner eligible to enter into a second confession of \n\line 22.26judgment may do so at the interest rate provided in paragraph (b). \n\line 22.27{\strike (e) Repurchase agreements or contracts for repurchase for properties being } \n\line 22.28{\strike repurchased under section }\n\line {\strike 282.261}{\strike are not eligible to receive the interest rate under } \n\line 22.29{\strike paragraph (b).} \n\line 22.30(f) The offer must be substantially as follows: \n\line 22.31"To the court administrator of the district court of ........... county, I, ....................., \n\line 22.32am the owner of the following described parcel of real estate located in .................... \n\line 22.33county, Minnesota: \n\line 22.34.............................. Upon that real estate there are delinquent taxes for the year ........., and \n\line 22.35prior years, as follows: (here insert year of delinquency and the total amount of delinquent \n\line 22.36taxes, costs, interest, and penalty). By signing this document I offer to confess judgment \n\line 23.1in the sum of $...... and waive all irregularities in the tax proceedings affecting these \n\line 23.2taxes and any defense or objection which I may have to them, and direct judgment to be \n\line 23.3entered for the amount stated above, minus the sum of $............, to be paid with this \n\line 23.4document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and \n\line 23.5interest stated above. I agree to pay the balance of the judgment in nine or four equal, \n\line 23.6annual installments, with interest as provided in section \n\line 279.03, payable annually, on the \n\line 23.7installments remaining unpaid. I agree to pay the installments and interest on or before \n\line 23.8December 31 of each year following the year in which this judgment is confessed and \n\line 23.9current taxes each year before they become delinquent, or within 30 days after the entry of \n\line 23.10final judgment in proceedings to contest the taxes under chapter 278. \n\line 23.11Dated .............., ......." \n\line 23.12{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and repurchases occurring } \n\line 23.13{\ul after January 1, 2017.} \n\line \n\line 23.14 Sec. 23. Minnesota Statutes 2014, section 282.01, subdivision 4, is amended to read: \n\line 23.15 Subd. 4. Sale: method, requirements, effects. The sale authorized under \n\line 23.16subdivision 3 must be conducted by the county auditor at the county seat of the county in \n\line 23.17which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may \n\line 23.18be conducted in any county facility within the county. The sale must not be for less than \n\line 23.19the appraised value except as provided in subdivision 7a. The parcels must be sold for \n\line 23.20cash only, unless the county board of the county has adopted a resolution providing for \n\line 23.21their sale on terms, in which event the resolution controls with respect to the sale. When \n\line 23.22the sale is made on terms other than for cash only (1) a payment of at least ten percent \n\line 23.23of the purchase price must be made at the time of purchase, and the balance must be \n\line 23.24paid in no more than ten equal annual installments, or (2) the payments must be made \n\line 23.25in accordance with county board policy, but in no event may the board require more \n\line 23.26than 12 installments annually, and the contract term must not be for more than ten years. \n\line 23.27Standing timber or timber products must not be removed from these lands until an amount \n\line 23.28equal to the appraised value of all standing timber or timber products on the lands at the \n\line 23.29time of purchase has been paid by the purchaser. If a parcel of land bearing standing \n\line 23.30timber or timber products is sold at public auction for more than the appraised value, the \n\line 23.31amount bid in excess of the appraised value must be allocated between the land and the \n\line 23.32timber in proportion to their respective appraised values. In that case, standing timber or \n\line 23.33timber products must not be removed from the land until the amount of the excess bid \n\line 23.34allocated to timber or timber products has been paid in addition to the appraised value of \n\line 24.1the land. The purchaser is entitled to immediate possession, subject to the provisions of \n\line 24.2any existing valid lease made in behalf of the state. \n\line 24.3{\strike For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price } \n\line 24.4{\strike is subject to interest at the rate determined pursuant to section }\n\line {\strike 549.09}{\strike .} The unpaid balance \n\line 24.5of the purchase price {\strike for sales occurring after December 31, 1990,} is subject to interest \n\line 24.6at the rate {\strike determined}{\ul provided} in section \n\line 279.03, subdivision {\strike 1a}{\ul 2, paragraph (c)}. {\strike The } \n\line 24.7{\strike interest rate is subject to change each year on the unpaid balance in the manner provided } \n\line 24.8{\strike for rate changes in section }\n\line {\strike 549.09}{\strike or }\n\line {\strike 279.03, subdivision 1a}{\strike , whichever, is applicable. } \n\line 24.9{\strike Interest on the unpaid contract balance on sales occurring before July 1, 1982, is payable } \n\line 24.10{\strike at the rate applicable to the sale at the time that the sale occurred.} \n\line 24.11{\ul EFFECTIVE DATE.}{\ul This section is effective for sales occurring after January } \n\line 24.12{\ul 1, 2017.} \n\line \n\line 24.13 Sec. 24. Minnesota Statutes 2014, section 282.261, subdivision 2, is amended to read: \n\line 24.14 Subd. 2. Interest rate. The unpaid balance on any repurchase contract approved \n\line 24.15by the county board{\ul for property classified as 1a or 1b and used as the homestead of the } \n\line 24.16{\ul owner at the time of forfeiture or at the time that the repurchase application is approved} is \n\line 24.17subject to interest at the rate determined in section \n\line 279.03, subdivision {\strike 1a}{\ul 2}. {\strike The interest } \n\line 24.18{\strike rate is subject to change each year on the unpaid balance in the manner provided for rate } \n\line 24.19{\strike changes in section }\n\line {\strike 279.03, subdivision 1a}{\strike .}{\ul The unpaid balance on any other repurchase } \n\line 24.20{\ul contract approved by the county board is subject to interest at the rate determined in } \n\line 24.21{\ul section 279.03, subdivision 1a, which is subject to change each year in the manner } \n\line 24.22{\ul provided for in section 279.03, subdivision 1a.} \n\line 24.23{\ul EFFECTIVE DATE.}{\ul This section is effective for repurchases occurring after } \n\line 24.24{\ul January 1, 2017.} \n\line \n\line 24.25 Sec. 25. Minnesota Statutes 2014, section 473H.09, is amended to read: \n\line 24.26473H.09 EARLY TERMINATION. \n\line 24.27 {\ul Subdivision 1.} {\ul Public emergency.} Termination of an agricultural preserve earlier \n\line 24.28than a date derived through application of section \n\line 473H.08 may be permitted {\strike only} in the \n\line 24.29event of a public emergency upon petition from the owner or authority to the governor. \n\line 24.30The determination of a public emergency shall be by the governor through executive order \n\line 24.31pursuant to sections \n\line 4.035 and \n\line 12.01 to \n\line 12.46. The executive order shall identify the \n\line 24.32preserve, the reasons requiring the action and the date of termination. \n\line 25.1 {\ul Subd. 2.} {\ul Death of owner.} {\ul (a) Within 180 days of the death of an owner, an owner's } \n\line 25.2{\ul spouse, or other qualifying person, the surviving owner may elect to terminate the } \n\line 25.3{\ul agricultural preserve and the covenant allowing the land to be enrolled as an agricultural } \n\line 25.4{\ul preserve by notifying the authority on a form provided by the commissioner of agriculture. } \n\line 25.5{\ul Termination of a covenant under this subdivision must be executed and acknowledged in } \n\line 25.6{\ul the manner required by law to execute and acknowledge a deed.} \n\line 25.7{\ul (b) For purposes of this subdivision, the following definitions apply:} \n\line 25.8{\ul (1) "qualifying person" includes a partner, shareholder, trustee for a trust that the } \n\line 25.9{\ul decedent was the settlor or a beneficiary of, or member of an entity permitted to own } \n\line 25.10{\ul agricultural land and engage in farming under section 500.24 that owned the agricultural } \n\line 25.11{\ul preserve; and } \n\line 25.12{\ul (2) "surviving owner" includes the executor of the estate of the decedent, the trustee } \n\line 25.13{\ul for a trust that the decedent was the settlor or a beneficiary of, or an entity permitted to } \n\line 25.14{\ul own farm land under section 500.24 of which the decedent was a partner, shareholder, or } \n\line 25.15{\ul member.} \n\line 25.16{\ul (c) When an agricultural preserve is terminated under this subdivision, the property } \n\line 25.17{\ul is subject to additional taxes in an amount equal to 50 percent of the taxes actually } \n\line 25.18{\ul levied against the property for the current taxes payable year. The additional taxes are } \n\line 25.19{\ul extended against the property on the tax list for taxes payable in the current year. The } \n\line 25.20{\ul additional taxes must be distributed among the jurisdictions levying taxes on the property } \n\line 25.21{\ul in proportion to the current year's taxes.} \n\line 25.22{\ul EFFECTIVE DATE.}{\ul This section is effective July 1, 2016.} \n\line \n\line 25.23 Sec. 26. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, \n\line 25.24article 6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154, \n\line 25.25article 2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read: \n\line 25.26 Sec. 3. TAX; PAYMENT OF EXPENSES. \n\line 25.27 (a) The tax levied by the hospital district under Minnesota Statutes, section \n\line 447.34, \n\line 25.28must not be levied at a rate that exceeds the amount authorized to be levied under that \n\line 25.29section. The proceeds of the tax may be used for all purposes of the hospital district, \n\line 25.30except as provided in paragraph (b). \n\line 25.31 (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by \n\line 25.32the Cook ambulance service and the Orr ambulance service for the purpose of: \n\line 25.33 (1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance \n\line 25.34service; \n\line 25.35 (2) attached and portable equipment for use in and for the ambulances; and \n\line 26.1 (3) parts and replacement parts for maintenance and repair of the ambulances{\ul , and } \n\line 26.2{\ul administrative, operation, or salary expenses for the Cook ambulance service and the } \n\line 26.3{\ul Orr ambulance service}. \n\line 26.4{\strike The money may not be used for administrative, operation, or salary expenses.} \n\line 26.5 (c) The part of the levy referred to in paragraph (b) must be administered by the \n\line 26.6Cook Hospital and passed on in equal amounts directly to the Cook area ambulance \n\line 26.7service board and the city of Orr to be used for the purposes in paragraph (b). \n\line 26.8{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 26.9 Sec. 27. Laws 1996, chapter 471, article 3, section 51, is amended to read: \n\line 26.10 Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY. \n\line 26.11 {\strike Subdivision 1.} {\strike Levy authorized.} Notwithstanding other law to the contrary, the \n\line 26.12Carlton county board of commissioners may levy in and for the unorganized township of \n\line 26.13Sawyer an amount up to {\strike $1,500}{\ul $2,000} annually for recreational purposes{\strike , beginning with } \n\line 26.14{\strike taxes payable in 1997 and ending with taxes payable in 2006}. \n\line 26.15 {\strike Subd. 2.} {\strike Effective date.} {\strike This section is effective June 1, 1996, without local } \n\line 26.16{\strike approval.} \n\line 26.17{\ul EFFECTIVE DATE.}{\ul This section is effective the day after the Carlton County } \n\line 26.18{\ul Board of Commissioners and its chief clerical officer comply with section 645.021, } \n\line 26.19{\ul subdivisions 2 and 3, and applies to taxes payable in 2017.} \n\line \n\line 26.20 Sec. 28. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by \n\line 26.21Laws 2013, chapter 143, article 4, section 36, is amended to read: \n\line 26.22 Subdivision 1. Agreement. The city of Cloquet and Perch Lake Township, by \n\line 26.23resolution of each of their governing bodies, may establish the Cloquet Area Fire and \n\line 26.24Ambulance {\ul Special }Taxing District for the purpose of providing fire or ambulance \n\line 26.25services, or both, throughout the district. In this section, "municipality" means home rule \n\line 26.26charter and statutory cities, towns, and Indian tribes. The district may exercise all the \n\line 26.27powers relating to fire and ambulance services of the municipalities that receive fire or \n\line 26.28ambulance services, or both, from the district. Upon application, any other municipality \n\line 26.29may join the district with the agreement of the municipalities that comprise the district at \n\line 26.30the time of its application to join. \n\line 26.31{\ul EFFECTIVE DATE.}{\ul This section is effective in Cloquet and Perch Lake Township } \n\line 26.32{\ul the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the } \n\line 26.33{\ul governing body of each.} \n\line \n\line 27.1 Sec. 29. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read: \n\line 27.2 Subd. 2. Board. The Cloquet Area Fire and Ambulance {\ul Special }Taxing District \n\line 27.3Board is governed by a board made up initially of one or more elected officials of the \n\line 27.4governing body of each participating municipality in the proportions set out in the \n\line 27.5establishing resolution, subject to change as provided in the district's charter, if any, or \n\line 27.6in the district's bylaws. Each municipality's representatives serve at the pleasure of that \n\line 27.7municipality's governing body. \n\line 27.8{\ul EFFECTIVE DATE.}{\ul This section is effective in Cloquet and Perch Lake Township } \n\line 27.9{\ul the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the } \n\line 27.10{\ul governing body of each.} \n\line \n\line 27.11 Sec. 30. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by \n\line 27.12Laws 2013, chapter 143, article 4, section 37, is amended to read: \n\line 27.13 Subd. 3. Tax. {\ul (a) }The district board may impose a property tax on taxable property \n\line 27.14as provided in this subdivision{\ul to pay the costs of providing fire or ambulance services, } \n\line 27.15{\ul or both, throughout the district}. The board shall annually determine the total amount of \n\line 27.16the levy that is attributable to the cost of providing fire services and the cost of providing \n\line 27.17ambulance services within the primary service area. For those municipalities that only \n\line 27.18receive ambulance services, the costs for the provision of ambulance services shall \n\line 27.19be levied against taxable property within those municipalities at a rate necessary not to \n\line 27.20exceed 0.019 percent of the estimated market value. For those municipalities that receive \n\line 27.21both fire and ambulance services, the tax shall be imposed at a rate that does not exceed \n\line 27.220.2835 percent of estimated market value. \n\line 27.23{\ul (b) }When a member municipality opts to receive fire service from the district or \n\line 27.24an additional municipality becomes a member of the district, the cost of providing fire \n\line 27.25services to that community shall be determined by the board and added to the maximum \n\line 27.26levy amount. \n\line 27.27{\ul (c) }Each county auditor of a county that contains a municipality subject to the tax \n\line 27.28under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing \n\line 27.29District. The district may also impose other fees or charges as allowed by law for the \n\line 27.30provision of fire and ambulance services. \n\line 27.31{\ul EFFECTIVE DATE.}{\ul This section is effective in Cloquet and Perch Lake Township } \n\line 27.32{\ul the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the } \n\line 27.33{\ul governing body of each.} \n\line \n\line 28.1 Sec. 31. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read: \n\line 28.2 Subd. 4. Public indebtedness. {\ul (a) }The district may incur debt in the manner \n\line 28.3provided for a municipality by Minnesota Statutes, chapter 475, {\ul and may issue certificates } \n\line 28.4{\ul of indebtedness or capital notes in the manner provided for a city by Minnesota Statutes, } \n\line 28.5{\ul section 412.301, }when necessary to accomplish its duties{\ul , except that the district may } \n\line 28.6{\ul not incur debt or issue obligations until first obtaining the approval of a majority of the } \n\line 28.7{\ul electors voting on the question of issuing the obligation. The debt service for debt used to } \n\line 28.8{\ul finance capital costs for ambulance service shall be levied against taxable property within } \n\line 28.9{\ul the municipalities in the primary service area. The debt service for debt used to finance } \n\line 28.10{\ul capital costs for fire service shall be levied against taxable property within municipalities } \n\line 28.11{\ul receiving fire services. The district board shall pledge its full faith and credit and taxing } \n\line 28.12{\ul power without limitation as to rate or amount for the payment of the district's debt}. \n\line 28.13{\ul (b) For purposes of this subdivision, "municipality" has the definition given in } \n\line 28.14{\ul Minnesota Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph } \n\line 28.15{\ul (c).} \n\line 28.16{\ul EFFECTIVE DATE.}{\ul This section is effective in Cloquet and Perch Lake Township } \n\line 28.17{\ul the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the } \n\line 28.18{\ul governing body of each.} \n\line \n\line 28.19 Sec. 32. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read: \n\line 28.20 Subd. 5. Withdrawal. Notice of intent to withdraw from participation in the district \n\line 28.21may be given only in the month of January, with a minimum of twelve months notice of \n\line 28.22intent to withdraw. Withdrawal becomes effective for taxes levied {\ul pursuant to subdivision } \n\line 28.23{\ul 3 }in the year when the notice is given. {\ul A property tax on taxable property located in a } \n\line 28.24{\ul withdrawing municipality that has been levied by the district pursuant to subdivision 4 } \n\line 28.25{\ul remains in effect until the obligations outstanding on the date of withdrawal are satisfied, } \n\line 28.26{\ul including any property tax levied in connection with refunding such obligations. }The \n\line 28.27district and its members may {\ul also }develop and agree upon {\ul other }continuing obligations \n\line 28.28after withdrawal of a municipality. \n\line 28.29{\ul EFFECTIVE DATE.}{\ul This section is effective in Cloquet and Perch Lake Township } \n\line 28.30{\ul the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the } \n\line 28.31{\ul governing body of each.} \n\line \n\line 28.32 Sec. 33. {\ul 2016 TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE } \n\line 28.33{\ul WAIVER.} \n\line 29.1{\ul If a city or town that conducts local board of appeal and equalization meetings } \n\line 29.2{\ul certified by February 1, 2016, that it was in compliance with the requirements of } \n\line 29.3{\ul Minnesota Statutes, section 274.014, subdivision 2, but no member of the local board } \n\line 29.4{\ul who has attended an appeal and equalization course training within the preceding four } \n\line 29.5{\ul years attended the local board's meeting for 2016, that local board shall have its powers } \n\line 29.6{\ul reinstated for the 2017 assessment by resolution of the governing body of the city or } \n\line 29.7{\ul town, and by certifying it is in compliance with the requirements of Minnesota Statutes, } \n\line 29.8{\ul section 274.014, subdivision 2. The resolution and certification must be provided to } \n\line 29.9{\ul the county assessor by February 1, 2017.} \n\line 29.10{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 29.11 Sec. 34. {\ul TOWN OF TOFTE; MUNICIPAL HOUSING.} \n\line 29.12{\ul (a) Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988, } \n\line 29.13{\ul chapter 719, article 19, section 27, the town of Tofte may own and operate within its } \n\line 29.14{\ul boundary up to 12 units of housing for individuals over 55 years of age or families with } \n\line 29.15{\ul one member of the household that is over 55 years of age, or projects that provide housing } \n\line 29.16{\ul for individuals or families with incomes not greater than 120 percent of the median } \n\line 29.17{\ul family income, as estimated by the United States Department of Housing and Urban } \n\line 29.18{\ul Development for the nonmetropolitan county in which the town of Tofte is located.} \n\line 29.19{\ul (b) The town of Tofte shall have the powers of a city under Minnesota Statutes, } \n\line 29.20{\ul chapter 462C, and the powers of an authority under Minnesota Statutes, sections 469.001 } \n\line 29.21{\ul to 469.047, with respect to this section. Upon the approval of the town board, the town of } \n\line 29.22{\ul Tofte may levy the tax described in Minnesota Statutes, section 469.033, subdivision 6.} \n\line 29.23{\ul (c) Nothing in this section shall limit the power of the Cook County/Grand Marais } \n\line 29.24{\ul Joint Economic Development Authority to exercise jurisdiction within the town of Tofte. } \n\line 29.25{\ul The authority to undertake new projects under this section shall expire on June 30, 2017.} \n\line 29.26{\ul EFFECTIVE DATE.}{\ul This section is effective the day after compliance by } \n\line 29.27{\ul the governing body of the town of Tofte with Minnesota Statutes, section 645.021, } \n\line 29.28{\ul subdivisions 2 and 3.} \n\line \n\line 29.29 Sec. 35. {\ul SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL } \n\line 29.30{\ul ASSESSMENT.} \n\line 29.31{\ul Any real or personal property acquired, owned, leased, controlled, used, or occupied } \n\line 29.32{\ul by the city of St. Paul for the primary purpose of providing a stadium for a Major League } \n\line 29.33{\ul Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for } \n\line 30.1{\ul public, governmental, and municipal purposes, and is exempt from ad valorem taxation by } \n\line 30.2{\ul the state or any political subdivision of the state, provided that the properties are subject to } \n\line 30.3{\ul special assessments levied by a political subdivision for a local improvement in amounts } \n\line 30.4{\ul proportionate to and not exceeding the special benefit received by the properties from the } \n\line 30.5{\ul improvement. In determining the special benefit received by the properties, no possible } \n\line 30.6{\ul use of any of the properties in any manner different from their intended use for providing a } \n\line 30.7{\ul Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota } \n\line 30.8{\ul Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a } \n\line 30.9{\ul lease or use agreement between the city and another person for uses related to the purposes } \n\line 30.10{\ul of the operation of the stadium and related parking facilities is exempt from taxation } \n\line 30.11{\ul regardless of the length of the lease or use agreement. This section, insofar as it provides } \n\line 30.12{\ul an exemption or special treatment, does not apply to any real property that is leased for } \n\line 30.13{\ul residential, business, or commercial development or other purposes different from those } \n\line 30.14{\ul necessary to the provision and operation of the stadium.} \n\line 30.15{\ul EFFECTIVE DATE.}{\ul This section is effective upon approval by the St. Paul City } \n\line 30.16{\ul Council and compliance with Minnesota Statutes, section 645.021.} \n\line \n\line 30.17 Sec. 36. {\ul OPTIONAL CANCELLATION OF TAX FORFEITURE FOR CERTAIN } \n\line 30.18{\ul BUILDINGS; ST. LOUIS COUNTY.} \n\line 30.19 {\ul Subdivision 1.} {\ul Definitions.} {\ul (a) For purposes of this section, the following terms } \n\line 30.20{\ul have the meanings given.} \n\line 30.21{\ul (b) "Building PIN" means a parcel identification number that is assigned to a } \n\line 30.22{\ul building and does not include the land upon which the building is located; and} \n\line 30.23{\ul (c) "Land PIN" means a parcel identification number that is assigned to land upon } \n\line 30.24{\ul which a building associated with a building PIN is located.} \n\line 30.25 {\ul Subd. 2.} {\ul Optional cancellation of tax forfeiture for buildings with building PINs.} \n\line 30.26{\ul Notwithstanding any law to the contrary, if any building associated with a building PIN } \n\line 30.27{\ul and located in St. Louis County forfeits or has forfeited to the state of Minnesota before, } \n\line 30.28{\ul on, or after the date of enactment of this section because of nonpayment of delinquent } \n\line 30.29{\ul property taxes, special assessments, penalties, interest, or costs, the county auditor of St. } \n\line 30.30{\ul Louis County may, with approval from the county board and the commissioner of revenue:} \n\line 30.31{\ul (1) cancel the certificate of forfeiture and set aside the forfeiture without reinstating } \n\line 30.32{\ul the unpaid property taxes, special assessments, penalties, interest, or costs; and} \n\line 31.1{\ul (2) combine the building PIN with its associated land PIN. When this occurs, the } \n\line 31.2{\ul land PIN is the only surviving parcel identification number, and includes both the building } \n\line 31.3{\ul and the land upon which the building is located.} \n\line 31.4 {\ul Subd. 3.} {\ul Cancellation of tax forfeiture; taxation through date of cancellation.} \n\line 31.5{\ul Notwithstanding any law to the contrary, if the county auditor of St. Louis County cancels } \n\line 31.6{\ul a certificate of forfeiture and sets aside a forfeiture in accordance with subdivision 2, } \n\line 31.7{\ul the affected building is not subject to taxation from the date of forfeiture through the } \n\line 31.8{\ul date of cancellation.} \n\line 31.9 {\ul Subd. 4.} {\ul Appropriation.} {\ul $1,000,000 in fiscal year 2017 only is appropriated from } \n\line 31.10{\ul the general fund to the commissioner of revenue for a grant to St. Louis County that shall } \n\line 31.11{\ul be paid on July 1, 2016. The county may only use the grant to remove any building, } \n\line 31.12{\ul upon the request of the landowner, after the county has complied with the provisions of } \n\line 31.13{\ul subdivision 2.} \n\line 31.14{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 31.15 Sec. 37. {\ul LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.} \n\line 31.16 {\ul Subdivision 1.} {\ul Abatements authorized.} {\ul (a) Notwithstanding Minnesota Statutes, } \n\line 31.17{\ul section 375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may } \n\line 31.18{\ul grant an abatement of local property taxes for taxes payable in 2016 provided that:} \n\line 31.19{\ul (1) the property is classified as 1c, 3a (excluding utility real and personal property), } \n\line 31.20{\ul 4c(1), 4c(10), or 4c(11);} \n\line 31.21{\ul (2) on or before February 1, 2017, the taxpayer submits a written application to the } \n\line 31.22{\ul county assessor in the county in which abatement is sought; and} \n\line 31.23{\ul (3) the taxpayer meets qualification requirements established in subdivision 3.} \n\line 31.24 {\ul Subd. 2.} {\ul Appeals.} {\ul An appeal may not be taken to the Tax Court from any order } \n\line 31.25{\ul of the county board made pursuant to the exercise of the discretionary authority granted } \n\line 31.26{\ul in this section.} \n\line 31.27 {\ul Subd. 3.} {\ul Qualification requirements.} {\ul To qualify for abatements under this section, } \n\line 31.28{\ul a taxpayer must:} \n\line 31.29{\ul (1) be located within one of the following municipalities surrounding Lake Mille } \n\line 31.30{\ul Lacs:} \n\line 31.31{\ul (i) in Crow Wing County, the city of Garrison, township of Garrison, or township } \n\line 31.32{\ul of Roosevelt;} \n\line 32.1{\ul (ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township } \n\line 32.2{\ul of Malmo, or township of Lakeside; or} \n\line 32.3{\ul (iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township } \n\line 32.4{\ul of East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;} \n\line 32.5{\ul (2) document a reduction in gross receipts of five percent or greater between two } \n\line 32.6{\ul successive calendar years beginning in 2010 or later; and} \n\line 32.7{\ul (3) be a business in one of the following industries, as defined within the North } \n\line 32.8{\ul American Industry Classification System: accommodation, restaurants, bars, amusement } \n\line 32.9{\ul and recreation, food and beverages retail, sporting goods, miscellaneous retail, general } \n\line 32.10{\ul retail, museums, historical sites, health and personal care, gas station, general merchandise, } \n\line 32.11{\ul business and professional membership, movies, or nonstore retailer, as determined by the } \n\line 32.12{\ul county in consultation with the commissioner of employment and economic development.} \n\line 32.13 {\ul Subd. 4.} {\ul State general levy in relief area.} {\ul The counties of Aitkin, Crow Wing, and } \n\line 32.14{\ul Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a } \n\line 32.15{\ul (excluding utility real and personal property), or 4c(1) that is located in the area described } \n\line 32.16{\ul by subdivision 3, clause (1), for taxes payable in 2016. No refund may be issued to a } \n\line 32.17{\ul taxpayer whose property taxes are delinquent.} \n\line 32.18 {\ul Subd. 5.} {\ul Certification and transfer of funds.} {\ul (a) By April 1, 2017, a county } \n\line 32.19{\ul granting a refund as required under subdivision 4 must certify the total amount of state } \n\line 32.20{\ul general tax refunded to Mille Lacs County and the commissioner of revenue. By May 1, } \n\line 32.21{\ul 2017, Mille Lacs County must transfer an amount equal to the amount certified under this } \n\line 32.22{\ul paragraph to the county making the certification.} \n\line 32.23{\ul (b) By April 1, 2017, a county that has received an application for an abatement } \n\line 32.24{\ul authorized under subdivision 1 must certify to Mille Lacs County the total amount of } \n\line 32.25{\ul abatements for which applications have been received and approved. By May 1, 2017, } \n\line 32.26{\ul Mille Lacs County must transfer an amount equal to the amount certified under this } \n\line 32.27{\ul paragraph to the county making the certification. If the amount appropriated under } \n\line 32.28{\ul subdivision 6, minus the amount transferred under paragraph (a), is not sufficient to make } \n\line 32.29{\ul the transfer required under this paragraph, Mille Lacs County must reduce the amount } \n\line 32.30{\ul transferred to each county by a uniform percentage. By June 30, 2017, the county must } \n\line 32.31{\ul issue refunds of local property tax amounts to qualified properties, in proportion to the } \n\line 32.32{\ul amount received from Mille Lacs County. No refund may be issued to a taxpayer whose } \n\line 32.33{\ul property taxes are delinquent.} \n\line 32.34{\ul (c) By August 1, 2017, Mille Lacs County must calculate the amount transferred } \n\line 32.35{\ul under paragraphs (a) and (b), and subtract that amount from $1,400,000 to obtain the } \n\line 33.1{\ul ongoing economic relief distribution amount, if any. This amount must be transferred to } \n\line 33.2{\ul the counties of Aitkin, Crow Wing, and Mille Lacs in proportion to the amounts certified } \n\line 33.3{\ul by each county under paragraphs (a) and (b). A county receiving a transfer under this } \n\line 33.4{\ul paragraph must use the funds received to provide abatements to business properties under } \n\line 33.5{\ul economic hardship for taxes payable in 2017, and each year thereafter until a county's } \n\line 33.6{\ul share of the ongoing economic relief distribution amount is exhausted.} \n\line 33.7 {\ul Subd. 6.} {\ul Commissioner of revenue; appropriation.} {\ul $1,400,000 in fiscal year 2017 } \n\line 33.8{\ul is appropriated from the general fund to the commissioner of revenue for transfer to } \n\line 33.9{\ul Mille Lacs County to make the transfers required under subdivision 5. This is a onetime } \n\line 33.10{\ul appropriation.} \n\line 33.11 {\ul Subd. 7.} {\ul Report to legislature.} {\ul The commissioner of revenue must make a } \n\line 33.12{\ul written report to the chairs and ranking minority members of the legislative committees } \n\line 33.13{\ul with jurisdiction over taxes stating the amount of abatements and refunds given under } \n\line 33.14{\ul this section by taxing jurisdictions by February 1, 2018. The counties must provide the } \n\line 33.15{\ul commissioner with the information necessary to make the report.} \n\line 33.16{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 33.17 Sec. 38. {\ul REPEALER.} \n\line 33.18{\ul Minnesota Statutes 2014, section 272.02, subdivision 23,}{\ul is repealed.} \n\line 33.19{\ul EFFECTIVE DATE.}{\ul This section is effective for taxes payable in 2017 and } \n\line 33.20{\ul thereafter.} \n\line \n\line
33.21ARTICLE 2 \n\line \n\line
\n\line
33.22AIDS AND CREDITS \n\line \n\line
\n\line 33.23 Section 1. {\ul [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.} \n\line 33.24 {\ul Subdivision 1.} {\ul Eligibility.} {\ul All class 2a, 2b, and 2c property under section 273.13, } \n\line 33.25{\ul subdivision 23, other than property consisting of the house, garage, and immediately } \n\line 33.26{\ul surrounding one acre of land of an agricultural homestead, is eligible to receive the credit } \n\line 33.27{\ul under this section.} \n\line 33.28 {\ul Subd. 2.} {\ul Credit amount.} {\ul For each qualifying property, the school building bond } \n\line 33.29{\ul agricultural credit is equal to 40 percent of the property's eligible net tax capacity } \n\line 33.30{\ul multiplied by the school debt tax rate determined under section 275.08, subdivision 1b.} \n\line 33.31 {\ul Subd. 3.} {\ul Credit reimbursements.} {\ul The county auditor shall determine the tax } \n\line 33.32{\ul reductions allowed under this section within the county for each taxes payable year and } \n\line 34.1{\ul shall certify that amount to the commissioner of revenue as a part of the abstracts of tax } \n\line 34.2{\ul lists submitted under section 275.29. Any prior year adjustments shall also be certified on } \n\line 34.3{\ul the abstracts of tax lists. The commissioner shall review the certifications for accuracy, } \n\line 34.4{\ul and may make such changes as are deemed necessary, or return the certification to the } \n\line 34.5{\ul county auditor for correction. The credit under this section must be used to reduce the } \n\line 34.6{\ul school district net tax capacity-based property tax as provided in section }\n\line {\ul 273.1393}{\ul .} \n\line 34.7 {\ul Subd. 4.} {\ul Payment.} {\ul The commissioner of revenue shall certify the total of the tax } \n\line 34.8{\ul reductions granted under this section for each taxes payable year within each school } \n\line 34.9{\ul district to the commissioner of education, who shall pay the reimbursement amounts to } \n\line 34.10{\ul each school district as provided in section }\n\line {\ul 273.1392}{\ul .} \n\line 34.11 {\ul Subd. 5.} {\ul Appropriation.} {\ul An amount sufficient to make the payments required by this } \n\line 34.12{\ul section is annually appropriated from the general fund to the commissioner of education.} \n\line 34.13{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 34.14 Sec. 2. Minnesota Statutes 2014, section 273.1392, is amended to read: \n\line 34.15273.1392 PAYMENT; SCHOOL DISTRICTS. \n\line 34.16The amounts of bovine tuberculosis credit reimbursements under section \n\line 273.113; \n\line 34.17conservation tax credits under section \n\line 273.119; disaster or emergency reimbursement \n\line 34.18under sections \n\line 273.1231 to \n\line 273.1235; {\strike homestead and} agricultural credits under {\strike section } \n\line 34.19{\ul sections} \n\line 273.1384{\ul and 273.1387}; aids and credits under section \n\line 273.1398; enterprise zone \n\line 34.20property credit payments under section \n\line 469.171; and metropolitan agricultural preserve \n\line 34.21reduction under section \n\line 473H.10 for school districts, shall be certified to the Department \n\line 34.22of Education by the Department of Revenue. The amounts so certified shall be paid \n\line 34.23according to section \n\line 127A.45, subdivisions 9 and 13. \n\line 34.24{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 34.25 Sec. 3. Minnesota Statutes 2014, section 273.1393, is amended to read: \n\line 34.26273.1393 COMPUTATION OF NET PROPERTY TAXES. \n\line 34.27 Notwithstanding any other provisions to the contrary, "net" property taxes are \n\line 34.28determined by subtracting the credits in the order listed from the gross tax: \n\line 34.29 (1) disaster credit as provided in sections \n\line 273.1231 to \n\line 273.1235; \n\line 34.30 (2) powerline credit as provided in section \n\line 273.42; \n\line 34.31 (3) agricultural preserves credit as provided in section \n\line 473H.10; \n\line 34.32 (4) enterprise zone credit as provided in section \n\line 469.171; \n\line 34.33 (5) disparity reduction credit; \n\line 35.1 (6) conservation tax credit as provided in section \n\line 273.119; \n\line 35.2 (7) {\ul the school bond credit, as provided in section 273.1387;} \n\line 35.3 {\ul (8) }agricultural credit as provided in section \n\line 273.1384; \n\line 35.4 {\strike (8)}{\ul (9)} taconite homestead credit as provided in section \n\line 273.135; \n\line 35.5 {\strike (9)}{\ul (10)} supplemental homestead credit as provided in section \n\line 273.1391; and \n\line 35.6 {\strike (10)}{\ul (11)} the bovine tuberculosis zone credit, as provided in section \n\line 273.113. \n\line 35.7 The combination of all property tax credits must not exceed the gross tax amount. \n\line 35.8{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 35.9 Sec. 4. Minnesota Statutes 2014, section 275.065, subdivision 3, is amended to read: \n\line 35.10 Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare \n\line 35.11and the county treasurer shall deliver after November 10 and on or before November 24 \n\line 35.12each year, by first class mail to each taxpayer at the address listed on the county's current \n\line 35.13year's assessment roll, a notice of proposed property taxes. Upon written request by \n\line 35.14the taxpayer, the treasurer may send the notice in electronic form or by electronic mail \n\line 35.15instead of on paper or by ordinary mail. \n\line 35.16 (b) The commissioner of revenue shall prescribe the form of the notice. \n\line 35.17 (c) The notice must inform taxpayers that it contains the amount of property taxes \n\line 35.18each taxing authority proposes to collect for taxes payable the following year. In the case of \n\line 35.19a town, or in the case of the state general tax, the final tax amount will be its proposed tax. \n\line 35.20The notice must clearly state for each city that has a population over 500, county, school \n\line 35.21district, regional library authority established under section \n\line 134.201, and metropolitan \n\line 35.22taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing \n\line 35.23authority in which the budget and levy will be discussed and public input allowed, prior to \n\line 35.24the final budget and levy determination. The taxing authorities must provide the county \n\line 35.25auditor with the information to be included in the notice on or before the time it certifies \n\line 35.26its proposed levy under subdivision 1. The public must be allowed to speak at that \n\line 35.27meeting, which must occur after November 24 and must not be held before 6:00 p.m. It \n\line 35.28must provide a telephone number for the taxing authority that taxpayers may call if they \n\line 35.29have questions related to the notice and an address where comments will be received by \n\line 35.30mail, except that no notice required under this section shall be interpreted as requiring the \n\line 35.31printing of a personal telephone number or address as the contact information for a taxing \n\line 35.32authority. If a taxing authority does not maintain public offices where telephone calls can \n\line 35.33be received by the authority, the authority may inform the county of the lack of a public \n\line 35.34telephone number and the county shall not list a telephone number for that taxing authority. \n\line 35.35 (d) The notice must state for each parcel: \n\line 36.1 (1) the market value of the property as determined under section \n\line 273.11, and used \n\line 36.2for computing property taxes payable in the following year and for taxes payable in the \n\line 36.3current year as each appears in the records of the county assessor on November 1 of the \n\line 36.4current year; and, in the case of residential property, whether the property is classified as \n\line 36.5homestead or nonhomestead. The notice must clearly inform taxpayers of the years to \n\line 36.6which the market values apply and that the values are final values; \n\line 36.7 (2) the items listed below, shown separately by county, city or town, and state \n\line 36.8general tax, agricultural homestead credit under section \n\line 273.1384, {\ul school building bond } \n\line 36.9{\ul agricultural credit under section 273.1387, }voter approved school levy, other local school \n\line 36.10levy, and the sum of the special taxing districts, and as a total of all taxing authorities: \n\line 36.11 (i) the actual tax for taxes payable in the current year; and \n\line 36.12 (ii) the proposed tax amount. \n\line 36.13 If the county levy under clause (2) includes an amount for a lake improvement \n\line 36.14district as defined under sections \n\line 103B.501 to \n\line 103B.581, the amount attributable for that \n\line 36.15purpose must be separately stated from the remaining county levy amount. \n\line 36.16 In the case of a town or the state general tax, the final tax shall also be its proposed \n\line 36.17tax unless the town changes its levy at a special town meeting under section \n\line 365.52. If a \n\line 36.18school district has certified under section \n\line 126C.17, subdivision 9, that a referendum will \n\line 36.19be held in the school district at the November general election, the county auditor must \n\line 36.20note next to the school district's proposed amount that a referendum is pending and that, if \n\line 36.21approved by the voters, the tax amount may be higher than shown on the notice. In the \n\line 36.22case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be \n\line 36.23listed separately from the remaining amount of the city's levy. In the case of the city of \n\line 36.24St. Paul, the levy for the St. Paul Library Agency must be listed separately from the \n\line 36.25remaining amount of the city's levy. In the case of Ramsey County, any amount levied \n\line 36.26under section \n\line 134.07 may be listed separately from the remaining amount of the county's \n\line 36.27levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax \n\line 36.28under chapter 276A or 473F applies, the proposed tax levy on the captured value or the \n\line 36.29proposed tax levy on the tax capacity subject to the areawide tax must each be stated \n\line 36.30separately and not included in the sum of the special taxing districts; and \n\line 36.31 (3) the increase or decrease between the total taxes payable in the current year and \n\line 36.32the total proposed taxes, expressed as a percentage. \n\line 36.33 For purposes of this section, the amount of the tax on homesteads qualifying under \n\line 36.34the senior citizens' property tax deferral program under chapter 290B is the total amount \n\line 36.35of property tax before subtraction of the deferred property tax amount. \n\line 37.1 (e) The notice must clearly state that the proposed or final taxes do not include \n\line 37.2the following: \n\line 37.3 (1) special assessments; \n\line 37.4 (2) levies approved by the voters after the date the proposed taxes are certified, \n\line 37.5including bond referenda and school district levy referenda; \n\line 37.6 (3) a levy limit increase approved by the voters by the first Tuesday after the first \n\line 37.7Monday in November of the levy year as provided under section \n\line 275.73; \n\line 37.8 (4) amounts necessary to pay cleanup or other costs due to a natural disaster \n\line 37.9occurring after the date the proposed taxes are certified; \n\line 37.10 (5) amounts necessary to pay tort judgments against the taxing authority that become \n\line 37.11final after the date the proposed taxes are certified; and \n\line 37.12 (6) the contamination tax imposed on properties which received market value \n\line 37.13reductions for contamination. \n\line 37.14 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or \n\line 37.15the county treasurer to deliver the notice as required in this section does not invalidate the \n\line 37.16proposed or final tax levy or the taxes payable pursuant to the tax levy. \n\line 37.17 (g) If the notice the taxpayer receives under this section lists the property as \n\line 37.18nonhomestead, and satisfactory documentation is provided to the county assessor by the \n\line 37.19applicable deadline, and the property qualifies for the homestead classification in that \n\line 37.20assessment year, the assessor shall reclassify the property to homestead for taxes payable \n\line 37.21in the following year. \n\line 37.22 (h) In the case of class 4 residential property used as a residence for lease or rental \n\line 37.23periods of 30 days or more, the taxpayer must either: \n\line 37.24 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, \n\line 37.25renter, or lessee; or \n\line 37.26 (2) post a copy of the notice in a conspicuous place on the premises of the property. \n\line 37.27 The notice must be mailed or posted by the taxpayer by November 27 or within \n\line 37.28three days of receipt of the notice, whichever is later. A taxpayer may notify the county \n\line 37.29treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to \n\line 37.30which the notice must be mailed in order to fulfill the requirements of this paragraph. \n\line 37.31 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing \n\line 37.32districts" means the following taxing districts in the seven-county metropolitan area that \n\line 37.33levy a property tax for any of the specified purposes listed below: \n\line 37.34 (1) Metropolitan Council under section \n\line 473.132, \n\line 473.167, \n\line 473.249, \n\line 473.325, \n\line \n\line 37.35473.446\n\line , \n\line 473.521, \n\line 473.547, or \n\line 473.834; \n\line 38.1 (2) Metropolitan Airports Commission under section \n\line 473.667, \n\line 473.671, or \n\line 473.672; \n\line 38.2and \n\line 38.3 (3) Metropolitan Mosquito Control Commission under section \n\line 473.711. \n\line 38.4 For purposes of this section, any levies made by the regional rail authorities in the \n\line 38.5county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter \n\line 38.6398A shall be included with the appropriate county's levy. \n\line 38.7 (j) The governing body of a county, city, or school district may, with the consent \n\line 38.8of the county board, include supplemental information with the statement of proposed \n\line 38.9property taxes about the impact of state aid increases or decreases on property tax \n\line 38.10increases or decreases and on the level of services provided in the affected jurisdiction. \n\line 38.11This supplemental information may include information for the following year, the current \n\line 38.12year, and for as many consecutive preceding years as deemed appropriate by the governing \n\line 38.13body of the county, city, or school district. It may include only information regarding: \n\line 38.14 (1) the impact of inflation as measured by the implicit price deflator for state and \n\line 38.15local government purchases; \n\line 38.16 (2) population growth and decline; \n\line 38.17 (3) state or federal government action; and \n\line 38.18 (4) other financial factors that affect the level of property taxation and local services \n\line 38.19that the governing body of the county, city, or school district may deem appropriate to \n\line 38.20include. \n\line 38.21 The information may be presented using tables, written narrative, and graphic \n\line 38.22representations and may contain instruction toward further sources of information or \n\line 38.23opportunity for comment. \n\line 38.24{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 38.25 Sec. 5. Minnesota Statutes 2014, section 275.07, subdivision 2, is amended to read: \n\line 38.26 Subd. 2. School district {\strike in more than one county}{\ul levies; special requirements}. {\ul (a) } \n\line 38.27In school districts lying in more than one county, the clerk shall certify the tax levied to the \n\line 38.28auditor of the county in which the administrative offices of the school district are located. \n\line 38.29{\ul (b) The district must identify the portion of the school district levy that is levied for } \n\line 38.30{\ul debt service at the time the levy is certified under this section. For the purposes of this } \n\line 38.31{\ul paragraph, "levied for debt service" means levies authorized under sections 123B.53, } \n\line 38.32{\ul 123B.535, and 123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt } \n\line 38.33{\ul excess levy reductions under section 475.61, subdivision 4, excluding debt service } \n\line 38.34{\ul amounts necessary for repayment of other postemployment benefits under section 475.52, } \n\line 38.35{\ul subdivision 6.} \n\line 39.1{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 39.2 Sec. 6. Minnesota Statutes 2014, section 275.08, subdivision 1b, is amended to read: \n\line 39.3 Subd. 1b. Computation of tax rates. {\ul (a) }The amounts certified to be levied against \n\line 39.4net tax capacity under section \n\line 275.07 by an individual local government unit shall be \n\line 39.5divided by the total net tax capacity of all taxable properties within the local government \n\line 39.6unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate, \n\line 39.7multiplied by each property's net tax capacity shall be each property's net tax capacity tax \n\line 39.8for that local government unit before reduction by any credits. \n\line 39.9{\ul (b) The auditor must also determine the school debt tax rate for each school district } \n\line 39.10{\ul equal to (1) the school debt service levy certified under section 275.07, subdivision 2, } \n\line 39.11{\ul divided by (2) the total net tax capacity of all taxable property within the district.} \n\line 39.12{\ul (c) }Any amount certified to the county auditor to be levied against market value shall \n\line 39.13be divided by the total referendum market value of all taxable properties within the taxing \n\line 39.14district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by \n\line 39.15each property's referendum market value shall be each property's new referendum tax \n\line 39.16before reduction by any credits. For the purposes of this subdivision, "referendum market \n\line 39.17value" means the market value as defined in section \n\line 126C.01, subdivision 3. \n\line 39.18{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 39.19 Sec. 7. Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read: \n\line 39.20 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing \n\line 39.21of the tax statements. The commissioner of revenue shall prescribe the form of the property \n\line 39.22tax statement and its contents. The tax statement must not state or imply that property tax \n\line 39.23credits are paid by the state of Minnesota. The statement must contain a tabulated statement \n\line 39.24of the dollar amount due to each taxing authority and the amount of the state tax from the \n\line 39.25parcel of real property for which a particular tax statement is prepared. The dollar amounts \n\line 39.26attributable to the county, the state tax, the voter approved school tax, the other local school \n\line 39.27tax, the township or municipality, and the total of the metropolitan special taxing districts \n\line 39.28as defined in section \n\line 275.065, subdivision 3, paragraph (i), must be separately stated. \n\line 39.29The amounts due all other special taxing districts, if any, may be aggregated except that \n\line 39.30any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, \n\line 39.31Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate \n\line 39.32line directly under the appropriate county's levy. If the county levy under this paragraph \n\line 39.33includes an amount for a lake improvement district as defined under sections \n\line 103B.501 \n\line \n\line 39.34to \n\line 103B.581, the amount attributable for that purpose must be separately stated from the \n\line 40.1remaining county levy amount. In the case of Ramsey County, if the county levy under this \n\line 40.2paragraph includes an amount for public library service under section \n\line 134.07, the amount \n\line 40.3attributable for that purpose may be separated from the remaining county levy amount. \n\line 40.4The amount of the tax on homesteads qualifying under the senior citizens' property tax \n\line 40.5deferral program under chapter 290B is the total amount of property tax before subtraction \n\line 40.6of the deferred property tax amount. The amount of the tax on contamination value \n\line 40.7imposed under sections \n\line 270.91 to \n\line 270.98, if any, must also be separately stated. The dollar \n\line 40.8amounts, including the dollar amount of any special assessments, may be rounded to the \n\line 40.9nearest even whole dollar. For purposes of this section whole odd-numbered dollars may \n\line 40.10be adjusted to the next higher even-numbered dollar. The amount of market value excluded \n\line 40.11under section \n\line 273.11, subdivision 16, if any, must also be listed on the tax statement. \n\line 40.12 (b) The property tax statements for manufactured homes and sectional structures \n\line 40.13taxed as personal property shall contain the same information that is required on the \n\line 40.14tax statements for real property. \n\line 40.15 (c) Real and personal property tax statements must contain the following information \n\line 40.16in the order given in this paragraph. The information must contain the current year tax \n\line 40.17information in the right column with the corresponding information for the previous year \n\line 40.18in a column on the left: \n\line 40.19 (1) the property's estimated market value under section \n\line 273.11, subdivision 1; \n\line 40.20 (2) the property's homestead market value exclusion under section \n\line 273.13, \n\line 40.21subdivision 35; \n\line 40.22 (3) the property's taxable market value under section \n\line 272.03, subdivision 15; \n\line 40.23 (4) the property's gross tax, before credits; \n\line 40.24 (5) for {\strike homestead} agricultural properties, the {\strike credit}{\ul credits} under {\strike section}{\ul sections} \n\line 40.25273.1384{\ul and 273.1387}; \n\line 40.26 (6) any credits received under sections \n\line 273.119; \n\line 273.1234 or \n\line 273.1235; \n\line 273.135; \n\line \n\line 40.27273.1391\n\line ; \n\line 273.1398, subdivision 4; \n\line 469.171; and \n\line 473H.10, except that the amount of \n\line 40.28credit received under section \n\line 273.135 must be separately stated and identified as "taconite \n\line 40.29tax relief"; and \n\line 40.30 (7) the net tax payable in the manner required in paragraph (a). \n\line 40.31 (d) If the county uses envelopes for mailing property tax statements and if the county \n\line 40.32agrees, a taxing district may include a notice with the property tax statement notifying \n\line 40.33taxpayers when the taxing district will begin its budget deliberations for the current \n\line 40.34year, and encouraging taxpayers to attend the hearings. If the county allows notices to \n\line 40.35be included in the envelope containing the property tax statement, and if more than \n\line 40.36one taxing district relative to a given property decides to include a notice with the tax \n\line 41.1statement, the county treasurer or auditor must coordinate the process and may combine \n\line 41.2the information on a single announcement. \n\line 41.3{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with taxes payable in 2017.} \n\line \n\line 41.4 Sec. 8. {\ul [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR } \n\line 41.5{\ul CERTAIN OUT-OF-HOME PLACEMENT.} \n\line 41.6 {\ul Subdivision 1.} {\ul Definition.} {\ul When used in this section, "out-of-home placement" } \n\line 41.7{\ul means 24-hour substitute care for an Indian child as defined by section 260C.007, } \n\line 41.8{\ul subdivision 21, placed under the Indian Child Welfare Act (ICWA) and chapter 260C, } \n\line 41.9{\ul away from the child's parent or guardian and for whom the county social services agency } \n\line 41.10{\ul or county correctional agency has been assigned responsibility for the child's placement } \n\line 41.11{\ul and care, which includes placement in foster care under section 260C.007, subdivision } \n\line 41.12{\ul 18, and a correctional facility pursuant to a court order.} \n\line 41.13 {\ul Subd. 2.} {\ul Determination of nonfederal share of costs.} {\ul (a) By January 1, 2017, each } \n\line 41.14{\ul county shall report the following information to the commissioners of human services and } \n\line 41.15{\ul corrections: (1) the separate amounts paid out of its social service agency and its corrections } \n\line 41.16{\ul budget for out-of-home placement of children under the ICWA in calendar years 2013, } \n\line 41.17{\ul 2014, and 2015; and (2) the number of case days associated with the expenditures from } \n\line 41.18{\ul each budget. By March 15, 2017, the commissioner of human services, in consultation with } \n\line 41.19{\ul the commissioner of corrections, shall certify to the commissioner of revenue and to the } \n\line 41.20{\ul legislative committees responsible for local government aids and out-of-home placement } \n\line 41.21{\ul funding, whether the data reported under this subdivision accurately reflects total } \n\line 41.22{\ul expenditures by counties for out-of-home placement costs of children under the ICWA.} \n\line 41.23{\ul (b) By January 1, 2019, and each January 1 thereafter, each county shall report to the } \n\line 41.24{\ul commissioners of human services and corrections the separate amounts paid out of its } \n\line 41.25{\ul social service agency and its corrections budget for out-of-home placement of children } \n\line 41.26{\ul under the ICWA in the calendar years two years before the current calendar year along } \n\line 41.27{\ul with the number of case days associated with the expenditures from each budget.} \n\line 41.28{\ul (c) Until the commissioner of human services develops another mechanism for } \n\line 41.29{\ul collecting and verifying data on out-of-home placements of children under the ICWA, and } \n\line 41.30{\ul the legislature authorizes the use of that data, the data collected under this subdivision } \n\line 41.31{\ul must be used to calculate payments under subdivision 3. The commissioner of human } \n\line 41.32{\ul services shall certify the nonfederal out-of-home placement costs for the three prior } \n\line 41.33{\ul calendar years for each county to the commissioner of revenue by June 1 of the year } \n\line 41.34{\ul prior to the aid payment.} \n\line 42.1 {\ul Subd. 3.} {\ul Aid payments to counties.} {\ul For aids payable in calendar year 2018 and } \n\line 42.2{\ul thereafter, the commissioner of revenue shall reimburse each county for 100 percent of } \n\line 42.3{\ul the nonfederal share of the cost of out-of-home placement of children under the ICWA } \n\line 42.4{\ul provided the commissioner of human services, in consultation with the commissioner } \n\line 42.5{\ul of corrections, certifies to the commissioner of revenue that accurate data is available } \n\line 42.6{\ul to make the aid determination under this section. The amount of reimbursement is the } \n\line 42.7{\ul county's average nonfederal share of the cost for out-of-home placement of children } \n\line 42.8{\ul under the ICWA for the most recent three calendar years for which data is available. } \n\line 42.9{\ul The commissioner shall pay the aid under the schedule used for local government aid } \n\line 42.10{\ul payments under section 477A.015.} \n\line 42.11 {\ul Subd. 4.} {\ul Aid payments to tribes.} {\ul (a) By January 1, 2017, and each year } \n\line 42.12{\ul thereafter, each tribe must certify to the commissioner of revenue the amount of federal } \n\line 42.13{\ul reimbursement received by the tribe for out-of-home placement of children under the } \n\line 42.14{\ul ICWA for the immediately preceding three calendar years. The commissioner of revenue } \n\line 42.15{\ul shall prescribe the format of the certification. For purposes of this section, "tribe" has the } \n\line 42.16{\ul meaning provided in section 260.755, subdivision 12.} \n\line 42.17{\ul (b) The amount of reimbursement to the tribe shall be the greater of: (1) five } \n\line 42.18{\ul percent of the average reimbursement amount received from the federal government for } \n\line 42.19{\ul out-of-home placement costs for the most recent three calendar years; or (2) $200,000. } \n\line 42.20{\ul The commissioner shall pay the aid under this section under the schedule used for local } \n\line 42.21{\ul government aid payments under section 477A.015.} \n\line 42.22 {\ul Subd. 5.} {\ul Appropriation.} {\ul An amount sufficient to pay aid under this section is } \n\line 42.23{\ul annually appropriated to the commissioner of revenue from the general fund.} \n\line 42.24{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with aids payable in 2018.} \n\line \n\line 42.25 Sec. 9. Minnesota Statutes 2015 Supplement, section 477A.015, is amended to read: \n\line 42.26477A.015 PAYMENT DATES. \n\line 42.27{\ul (a) }The commissioner of revenue shall make the payments of local government aid \n\line 42.28to affected taxing authorities in two installments on July 20 and December 26 annually. \n\line 42.29{\ul (b) Notwithstanding paragraph (a), for aids payable in 2017 only, the commissioner } \n\line 42.30{\ul of revenue shall make payments of the aid payable under section 477A.013, subdivision } \n\line 42.31{\ul 9, in three installments as follows: (1) 6.5 percent of the aid shall be paid on June 15, } \n\line 42.32{\ul 2017; (2) 43.5 percent of the aid shall be paid on July 20, 2017; and (3) 50 percent of the } \n\line 42.33{\ul aid shall be paid on December 26, 2017. } \n\line 43.1{\ul (c) }When the commissioner of public safety determines that a local government has \n\line 43.2suffered financial hardship due to a natural disaster, the commissioner of public safety \n\line 43.3shall notify the commissioner of revenue, who shall make payments of aids under sections \n\line \n\line 43.4477A.011\n\line to \n\line 477A.014, which are otherwise due on December 26, as soon as is practical \n\line 43.5after the determination is made but not before July 20. \n\line 43.6{\ul (d) }The commissioner may pay all or part of the payments of aids under sections \n\line \n\line 43.7477A.011\n\line to \n\line 477A.014, which are due on December 26 at any time after August 15 if a local \n\line 43.8government requests such payment as being necessary for meeting its cash flow needs. \n\line 43.9{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with aids payable in 2017.} \n\line \n\line 43.10 Sec. 10. Minnesota Statutes 2014, section 477A.017, subdivision 2, is amended to read: \n\line 43.11 Subd. 2. State auditor's duties. The state auditor shall prescribe uniform financial \n\line 43.12accounting and reporting standards in conformity with national standards to be applicable \n\line 43.13to cities and towns of more than 2,500 population and uniform reporting standards to be \n\line 43.14applicable to cities {\ul and towns }of less than 2,500 population. \n\line 43.15{\ul EFFECTIVE DATE.}{\ul This section applies to reporting of financial information for } \n\line 43.16{\ul calendar year 2016 and thereafter.} \n\line \n\line 43.17 Sec. 11. Minnesota Statutes 2014, section 477A.017, subdivision 3, is amended to read: \n\line 43.18 Subd. 3. Conformity. Other law to the contrary notwithstanding, in order to receive \n\line 43.19distributions under sections \n\line 477A.011 to \n\line 477A.03, counties {\strike and}{\ul , } cities{\ul , and towns} must \n\line 43.20conform to the standards set in subdivision 2 in making all financial reports required to be \n\line 43.21made to the state auditor {\strike after June 30, 1984}. \n\line 43.22{\ul EFFECTIVE DATE.}{\ul This section applies to reporting of financial information for } \n\line 43.23{\ul aids payable in 2017 and thereafter.} \n\line \n\line 43.24 Sec. 12. Minnesota Statutes 2015 Supplement, section 477A.03, subdivision 2a, \n\line 43.25is amended to read: \n\line 43.26 Subd. 2a. Cities. The total aid paid under section \n\line 477A.013, subdivision 9, is \n\line 43.27$516,898,012 for aids payable in 2015. For aids payable in 2016 {\strike and thereafter}, the total \n\line 43.28aid paid under section \n\line 477A.013, subdivision 9, is $519,398,012.{\ul For aids payable in 2017 } \n\line 43.29{\ul and thereafter, the total aid paid under section 477A.013, subdivision 9, is $539,398,012.} \n\line 43.30{\ul EFFECTIVE DATE.}{\ul This section is effective for aids payable in calendar year } \n\line 43.31{\ul 2017 and thereafter.} \n\line \n\line 44.1 Sec. 13. Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read: \n\line 44.2 Subd. 2b. Counties. (a) For aids payable in 2014 {\strike and thereafter}{\ul through 2016}, the \n\line 44.3total aid payable under section \n\line 477A.0124, subdivision 3, is $100,795,000{\ul . For aids } \n\line 44.4{\ul payable in 2017 through 2024, the total aid payable under section 477A.0124, subdivision } \n\line 44.5{\ul 3, is $108,795,000, of which $3,000,000 shall be allocated as required under Laws 2014, } \n\line 44.6{\ul chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, the total aid } \n\line 44.7{\ul payable under section 477A.0124, subdivision 3, is $105,795,000}. Each calendar year, \n\line 44.8$500,000 of this appropriation shall be retained by the commissioner of revenue to \n\line 44.9make reimbursements to the commissioner of management and budget for payments \n\line 44.10made under section \n\line 611.27. The reimbursements shall be to defray the additional costs \n\line 44.11associated with court-ordered counsel under section \n\line 611.27. Any retained amounts not \n\line 44.12used for reimbursement in a year shall be included in the next distribution of county \n\line 44.13need aid that is certified to the county auditors for the purpose of property tax reduction \n\line 44.14for the next taxes payable year. \n\line 44.15 (b) For aids payable in {\strike 2014 and thereafter}{\ul 2016}, the total aid under section \n\line \n\line 44.16477A.0124, subdivision 4\n\line , is $104,909,575{\ul . For aids payable in 2017 and thereafter, } \n\line 44.17{\ul the total aid payable under section 477A.0124, subdivision 4, is $109,909,575}. The \n\line 44.18commissioner of revenue shall transfer to the commissioner of management and budget \n\line 44.19$207,000 annually for the cost of preparation of local impact notes as required by section \n\line \n\line 44.203.987\n\line , and other local government activities. The commissioner of revenue shall transfer \n\line 44.21to the commissioner of education $7,000 annually for the cost of preparation of local \n\line 44.22impact notes for school districts as required by section \n\line 3.987. The commissioner of \n\line 44.23revenue shall deduct the amounts transferred under this paragraph from the appropriation \n\line 44.24under this paragraph. The amounts transferred are appropriated to the commissioner of \n\line 44.25management and budget and the commissioner of education respectively. \n\line 44.26{\ul EFFECTIVE DATE.}{\ul This section is effective for aids payable in 2017 and thereafter.} \n\line \n\line 44.27 Sec. 14. {\ul [477A.09] MAXIMUM EFFORT LOAN AID.} \n\line 44.28{\ul For fiscal years 2018 through 2022, each school district with a maximum effort loan } \n\line 44.29{\ul under sections 126C.61 to 126C.72 outstanding as of June 30, 2016, is eligible for an aid } \n\line 44.30{\ul payment equal to one-fifth of the amount of interest that was paid on the loan between } \n\line 44.31{\ul December 1, 1997, and June 30, 2016. Aid payments under this section must be used to } \n\line 44.32{\ul reduce property taxes levied on net tax capacity within the district. Aid under this section } \n\line 44.33{\ul must be paid in fiscal years 2018 through 2022, in the manner provided under section } \n\line 44.34{\ul 127A.45, subdivisions 9 and 13. An amount sufficient to make aid payments under this } \n\line 44.35{\ul section is annually appropriated from the general fund to the commissioner of education.} \n\line 45.1{\ul EFFECTIVE DATE.}{\ul This section is effective for fiscal years 2018 and thereafter.} \n\line \n\line 45.2 Sec. 15. {\ul [477A.21] RIPARIAN PROTECTION AID.} \n\line 45.3 {\ul Subdivision 1.} {\ul Definitions.} {\ul (a) When used in this section, the following terms have } \n\line 45.4{\ul the meanings given them in this subdivision.} \n\line 45.5{\ul (b) "Public water basins" has the meaning provided in section 103G.005, subdivision } \n\line 45.6{\ul 15, clauses (1) to (8) and (11).} \n\line 45.7{\ul (c) "Public watercourses" has the meaning provided in section 103G.005, } \n\line 45.8{\ul subdivision 15, clauses (9) and (10).} \n\line 45.9 {\ul Subd. 2. } {\ul Certification. } {\ul The Board of Water and Soil Resources must certify to the } \n\line 45.10{\ul commissioner of revenue by July 1 of each year which counties and watershed districts } \n\line 45.11{\ul have affirmed their jurisdiction under section 103F.48, subdivision 7, paragraph (b), and } \n\line 45.12{\ul the proportion of each county's land area that is contained in each watershed district } \n\line 45.13{\ul within the county. On or before July 1 of each year, the commissioner of natural resources } \n\line 45.14{\ul shall certify to the commissioner of revenue the statewide and countywide total of miles of } \n\line 45.15{\ul shoreline of public waters basins, the number of centerline miles of public watercourses, } \n\line 45.16{\ul and the miles of public drainage system ditches. } \n\line 45.17 {\ul Subd. 3.} {\ul Distribution.} {\ul (a) A county that is certified under subdivision 2 or that } \n\line 45.18{\ul portion of a county containing a watershed district certified under subdivision 2 is eligible } \n\line 45.19{\ul to receive aid under this section to enforce and implement the riparian protection and water } \n\line 45.20{\ul quality practices under section 103F.48. The commissioner shall calculate a preliminary } \n\line 45.21{\ul aid for all counties that shall equal: (1) each county's share of the total number of acres } \n\line 45.22{\ul in the state classified as class 2a under section 273.13, subdivision 23, divided by two; } \n\line 45.23{\ul plus (2) each county's share of the number of miles of shoreline of public water basins, } \n\line 45.24{\ul each county's share of the number of centerline miles of public watercourses, and each } \n\line 45.25{\ul county's share of the number of miles of public drainage system ditches established under } \n\line 45.26{\ul chapter 103E, divided by two; multiplied by (3) $10,000,000.} \n\line 45.27{\ul (b) Aid to a county shall not be greater than $200,000 or less than $45,000. If the } \n\line 45.28{\ul sum of the preliminary aids payable to counties under paragraph (a) is greater or less than } \n\line 45.29{\ul the appropriation under subdivision 5, the commissioner of revenue shall calculate the } \n\line 45.30{\ul percentage adjustment necessary so that the total of the aid under paragraph (a) equals the } \n\line 45.31{\ul total amount available for aid under subdivision 5.} \n\line 45.32{\ul (c) If only a portion of a county is certified as eligible to receive aid under subdivision } \n\line 45.33{\ul 2, the aid otherwise payable to that county under this section shall be multiplied by a } \n\line 45.34{\ul fraction, the numerator of which is the area of the certified watershed district contained } \n\line 45.35{\ul within the county and the denominator of which is the total area of the county. } \n\line 46.1{\ul (d) Any aid that would otherwise be paid to a county or portion of a county that is } \n\line 46.2{\ul not certified under subdivision 2 shall be paid to the Board of Water and Soil Resources } \n\line 46.3{\ul for the purpose of enforcing and implementing the riparian protection and water quality } \n\line 46.4{\ul practices under section 103F.48.} \n\line 46.5 {\ul Subd. 4.} {\ul Payments.} {\ul The commissioner of revenue must compute the amount of } \n\line 46.6{\ul riparian protection aid payable to each eligible county and to the Board of Water and Soil } \n\line 46.7{\ul Resources under this section. On or before August 1 of each year, the commissioner shall } \n\line 46.8{\ul certify the amount to be paid to each county in the following year. The commissioner shall } \n\line 46.9{\ul pay riparian protection aid to counties and the Board of Water and Soil Resources in the } \n\line 46.10{\ul same manner and at the same time as aid payments under section 477A.015.} \n\line 46.11 {\ul Subd. 5.} {\ul Appropriation.} {\ul $10,000,000 for aids payable in 2017 and each year } \n\line 46.12{\ul thereafter is appropriated from the general fund to the commissioner of revenue to make } \n\line 46.13{\ul the payments required under this section.} \n\line 46.14{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with aids payable in 2017 } \n\line 46.15{\ul and thereafter.} \n\line \n\line 46.16 Sec. 16. Laws 2001, First Special Session chapter 5, article 3, section 86, is amended \n\line 46.17to read: \n\line 46.18 Sec. 86. RED RIVER WATERSHED MANAGEMENT BOARD; PAYMENT \n\line 46.19IN LIEU OF TAXES. \n\line 46.20 (a) The Red River watershed management board may spend money from its general \n\line 46.21fund to compensate counties and townships for lost tax revenue from land that becomes \n\line 46.22tax exempt after it is acquired by the board or a member watershed district for flood \n\line 46.23damage reduction project. The amount that may be paid under this section to a county \n\line 46.24or township must not exceed the tax that was payable to that taxing jurisdiction on the \n\line 46.25land in the last taxes payable year before the land became exempt due to the acquisition, \n\line 46.26not to exceed {\strike $4}{\ul $5.133} per acre, multiplied by 20. This total amount may be paid in one \n\line 46.27payment, or in equal annual installments over a period that does not exceed 20 years. A \n\line 46.28member watershed district of the Red River management board may spend money from its \n\line 46.29construction fund for the purposes described in this section. \n\line 46.30 (b) For the purposes of this section, "Red River watershed management board" \n\line 46.31refers to the board established by Laws 1976, chapter 162, section 1, as amended by Laws \n\line 46.321982, chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special \n\line 46.33Session chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws \n\line 46.341998, chapter 389, article 3, section 29. \n\line 47.1{\ul EFFECTIVE DATE.}{\ul This section is effective for aids payable in calendar year } \n\line 47.2{\ul 2016 and thereafter.} \n\line \n\line 47.3 Sec. 17. {\ul 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.} \n\line 47.4{\ul Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of } \n\line 47.5{\ul Oslo shall receive the portion of its aid payment for calendar year 2013 under Minnesota } \n\line 47.6{\ul Statutes, section 477A.013, that was withheld under Minnesota Statutes, section } \n\line 47.7{\ul 477A.017, subdivision 3, provided that the state auditor certifies to the commissioner } \n\line 47.8{\ul of revenue that it received audited financial statements from the city for calendar year } \n\line 47.9{\ul 2012 by December 31, 2013. The commissioner of revenue shall make a payment of } \n\line 47.10{\ul $37,473.50 with the first payment of aids under Minnesota Statutes, section 477A.015. } \n\line 47.11{\ul $37,473.50 is appropriated from the general fund to the commissioner of revenue in fiscal } \n\line 47.12{\ul year 2017 to make this payment.} \n\line 47.13{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 47.14 Sec. 18. {\ul 2014 AID PENALTY FORGIVENESS.} \n\line 47.15{\ul (a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities } \n\line 47.16{\ul of Dundee, Jeffers, and Woodstock shall receive all of its calendar year 2014 aid payment } \n\line 47.17{\ul that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided } \n\line 47.18{\ul that the state auditor certifies to the commissioner of revenue that the city complied with } \n\line 47.19{\ul all reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for } \n\line 47.20{\ul calendar years 2013 and 2014 by June 1, 2015.} \n\line 47.21{\ul (b) The commissioner of revenue shall make payment to each city no later than June } \n\line 47.22{\ul 30, 2016. Up to $101,570 is appropriated from the general fund to the commissioner of } \n\line 47.23{\ul revenue in fiscal year 2017 to make the payments under this section.} \n\line 47.24{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 47.25 Sec. 19. {\ul BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.} \n\line 47.26{\ul In the first aid payable year in which a city that incorporated on October 13, 2015, } \n\line 47.27{\ul qualifies for aid under Minnesota Statutes, section 477A.013, subdivision 8, the city's } \n\line 47.28{\ul formula aid in the previous year shall be deemed to equal $115 multiplied by its population.} \n\line 47.29{\ul EFFECTIVE DATE.}{\ul This section is effective for aids payable in 2017 and thereafter.} \n\line \n\line 47.30 Sec. 20. {\ul REPEALER.} \n\line 47.31{\ul Minnesota Statutes 2014, section 477A.20,}{\ul is repealed.} \n\line 48.1{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line
48.2ARTICLE 3 \n\line \n\line
\n\line
48.3INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES \n\line \n\line
\n\line 48.4 Section 1. Minnesota Statutes 2014, section 136A.129, subdivision 3, is amended to \n\line 48.5read: \n\line 48.6 Subd. 3. Program components. (a) An intern must be an eligible student who has \n\line 48.7been admitted to a major program that is related to the intern experience as determined \n\line 48.8by the eligible institution. \n\line 48.9(b) To participate in the program, an eligible institution must: \n\line 48.10(1) enter into written agreements with eligible employers to provide internships that \n\line 48.11are at least eight weeks long and located in greater Minnesota; and \n\line 48.12(2) provide academic credit for the successful completion of the internship or ensure \n\line 48.13that it fulfills requirements necessary to complete a vocational technical education program. \n\line 48.14(c) To participate in the program, an eligible employer must enter into a written \n\line 48.15agreement with an eligible institution specifying that the intern: \n\line 48.16(1) {\strike would not have been hired without the tax credit described in subdivision 4;} \n\line 48.17{\strike (2)} did not work for the employer in the same or a similar job prior to entering \n\line 48.18the agreement; \n\line 48.19{\strike (3)}{\ul (2)} does not replace an existing employee; \n\line 48.20{\strike (4)}{\ul (3)} has not previously participated in the program; \n\line 48.21{\strike (5)}{\ul (4)} will be employed at a location in greater Minnesota; \n\line 48.22{\strike (6)}{\ul (5)} will be paid at least minimum wage for a minimum of 16 hours per week \n\line 48.23for a period of at least eight weeks; and \n\line 48.24{\strike (7)}{\ul (6)} will be supervised and evaluated by the employer. \n\line 48.25(d) The written agreement between the eligible institution and the eligible employer \n\line 48.26must certify a credit amount to the employer, not to exceed $2,000 per intern. The total \n\line 48.27dollar amount of credits that an eligible institution certifies to eligible employers in a \n\line 48.28calendar year may not exceed the amount of its allocation under subdivision 4. \n\line 48.29(e) Participating eligible institutions and eligible employers must report annually to \n\line 48.30the office. The report must include at least the following: \n\line 48.31(1) the number of interns hired; \n\line 48.32(2) the number of hours and weeks worked by interns; and \n\line 48.33(3) the compensation paid to interns. \n\line 48.34{\strike (f) An internship required to complete an academic program does not qualify for the } \n\line 48.35{\strike greater Minnesota internship program under this section.} \n\line 49.1{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 49.2{\ul December 31, 2015.} \n\line \n\line 49.3 Sec. 2. Minnesota Statutes 2015 Supplement, section 289A.02, subdivision 7, is \n\line 49.4amended to read: \n\line 49.5 Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal \n\line 49.6Revenue Code" means the Internal Revenue Code of 1986, as amended through December \n\line 49.731, {\strike 2014}{\ul 2015}. \n\line 49.8{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 49.9 Sec. 3. Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read: \n\line 49.10 Subd. 7. Resident. (a) The term "resident" means any individual domiciled \n\line 49.11in Minnesota, except that an individual is not a "resident" for the period of time that \n\line 49.12the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal \n\line 49.13Revenue Code, if the qualified individual notifies the county within three months of \n\line 49.14moving out of the country that homestead status be revoked for the Minnesota residence \n\line 49.15of the qualified individual, and the property is not classified as a homestead while the \n\line 49.16individual remains a qualified individual. \n\line 49.17(b) "Resident" also means any individual domiciled outside the state who maintains \n\line 49.18a place of abode in the state and spends in the aggregate more than one-half of the tax \n\line 49.19year in Minnesota, unless: \n\line 49.20(1) the individual or the spouse of the individual is in the armed forces of the United \n\line 49.21States; or \n\line 49.22(2) the individual is covered under the reciprocity provisions in section \n\line 290.081. \n\line 49.23For purposes of this subdivision, presence within the state for any part of a calendar \n\line 49.24day constitutes a day spent in the state. {\ul A day does not qualify as a Minnesota day if } \n\line 49.25{\ul the taxpayer traveled from a place outside of Minnesota primarily for and essential to } \n\line 49.26{\ul obtaining medical care, as defined in Internal Revenue Code, section 213(d)(1)(A), in } \n\line 49.27{\ul Minnesota for the taxpayer, spouse, or a dependent of the taxpayer and the travel expense } \n\line 49.28{\ul is allowed under Internal Revenue Code, section 213(d)(1)(B), and is claimed by the } \n\line 49.29{\ul taxpayer as a deductible expense. }Individuals shall keep adequate records to substantiate \n\line 49.30the days spent outside the state. \n\line 49.31The term "abode" means a dwelling maintained by an individual, whether or not \n\line 49.32owned by the individual and whether or not occupied by the individual, and includes a \n\line 49.33dwelling place owned or leased by the individual's spouse. \n\line 50.1(c) {\ul In determining where an individual is domiciled, }neither the commissioner nor \n\line 50.2any court shall consider{\ul : } \n\line 50.3{\ul (1)} charitable contributions made by {\strike an}{\ul the} individual within or without the state {\strike in } \n\line 50.4{\strike determining if the individual is domiciled in Minnesota.}{\ul ;} \n\line 50.5{\ul (2) the location of the individual's attorney, certified public accountant, or financial } \n\line 50.6{\ul adviser; or} \n\line 50.7{\ul (3) the place of business of a financial institution at which the individual applies for } \n\line 50.8{\ul any new type of credit or at which the individual opens or maintains any type of account.} \n\line 50.9{\ul (d) For purposes of this subdivision, the following terms have the meanings given } \n\line 50.10{\ul them:} \n\line 50.11{\ul (1) "financial adviser" means:} \n\line 50.12{\ul (i) an individual or business entity engaged in business as a certified financial } \n\line 50.13{\ul planner, registered investment adviser, licensed insurance producer or agent, or a } \n\line 50.14{\ul registered securities broker-dealer representative; or} \n\line 50.15{\ul (ii) a financial institution providing services related to trust or estate administration, } \n\line 50.16{\ul investment management, or financial planning; and} \n\line 50.17{\ul (2) "financial institution" means a financial institution as defined in section 47.015, } \n\line 50.18{\ul subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer } \n\line 50.19{\ul under the Securities and Exchange Act of 1934.} \n\line 50.20{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 50.21{\ul December 31, 2015, except the amendment to paragraph (b) is effective for taxable years } \n\line 50.22{\ul beginning after December 31, 2016.} \n\line \n\line 50.23 Sec. 4. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 19, is \n\line 50.24amended to read: \n\line 50.25 Subd. 19. Net income. The term "net income" means the federal taxable income, \n\line 50.26as defined in section 63 of the Internal Revenue Code of 1986, as amended through the \n\line 50.27date named in this subdivision, incorporating the federal effective dates of changes to the \n\line 50.28Internal Revenue Code and any elections made by the taxpayer in accordance with the \n\line 50.29Internal Revenue Code in determining federal taxable income for federal income tax \n\line 50.30purposes, and with the modifications provided in subdivisions 19a to 19f. \n\line 50.31 In the case of a regulated investment company or a fund thereof, as defined in section \n\line 50.32851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment \n\line 50.33company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, \n\line 50.34except that: \n\line 51.1 (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal \n\line 51.2Revenue Code does not apply; \n\line 51.3 (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal \n\line 51.4Revenue Code must be applied by allowing a deduction for capital gain dividends and \n\line 51.5exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal \n\line 51.6Revenue Code; and \n\line 51.7 (3) the deduction for dividends paid must also be applied in the amount of any \n\line 51.8undistributed capital gains which the regulated investment company elects to have treated \n\line 51.9as provided in section 852(b)(3)(D) of the Internal Revenue Code. \n\line 51.10 The net income of a real estate investment trust as defined and limited by section \n\line 51.11856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust \n\line 51.12taxable income as defined in section 857(b)(2) of the Internal Revenue Code. \n\line 51.13 The net income of a designated settlement fund as defined in section 468B(d) of \n\line 51.14the Internal Revenue Code means the gross income as defined in section 468B(b) of the \n\line 51.15Internal Revenue Code. \n\line 51.16 The Internal Revenue Code of 1986, as amended through December 31, {\strike 2014}{\ul 2015}, \n\line 51.17shall be in effect for taxable years beginning after December 31, 1996. \n\line 51.18 Except as otherwise provided, references to the Internal Revenue Code in \n\line 51.19subdivisions 19 to 19f mean the code in effect for purposes of determining net income for \n\line 51.20the applicable year. \n\line 51.21{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment, } \n\line 51.22{\ul except the changes incorporated by federal changes are effective retroactively at the same } \n\line 51.23{\ul time as the changes were effective for federal purposes.} \n\line \n\line 51.24 Sec. 5. Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read: \n\line 51.25 Subd. 19a. Additions to federal taxable income. For individuals, estates, and \n\line 51.26trusts, there shall be added to federal taxable income: \n\line 51.27 (1)(i) interest income on obligations of any state other than Minnesota or a political \n\line 51.28or governmental subdivision, municipality, or governmental agency or instrumentality \n\line 51.29of any state other than Minnesota exempt from federal income taxes under the Internal \n\line 51.30Revenue Code or any other federal statute; and \n\line 51.31 (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue \n\line 51.32Code, except: \n\line 51.33(A) the portion of the exempt-interest dividends exempt from state taxation under \n\line 51.34the laws of the United States; and \n\line 52.1(B) the portion of the exempt-interest dividends derived from interest income \n\line 52.2on obligations of the state of Minnesota or its political or governmental subdivisions, \n\line 52.3municipalities, governmental agencies or instrumentalities, but only if the portion of the \n\line 52.4exempt-interest dividends from such Minnesota sources paid to all shareholders represents \n\line 52.595 percent or more of the exempt-interest dividends, including any dividends exempt \n\line 52.6under subitem (A), that are paid by the regulated investment company as defined in section \n\line 52.7851(a) of the Internal Revenue Code, or the fund of the regulated investment company as \n\line 52.8defined in section 851(g) of the Internal Revenue Code, making the payment; and \n\line 52.9 (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal \n\line 52.10government described in section 7871(c) of the Internal Revenue Code shall be treated as \n\line 52.11interest income on obligations of the state in which the tribe is located; \n\line 52.12 (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or \n\line 52.13accrued within the taxable year under this chapter and the amount of taxes based on net \n\line 52.14income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or \n\line 52.15to any province or territory of Canada, to the extent allowed as a deduction under section \n\line 52.1663(d) of the Internal Revenue Code, but the addition may not be more than the amount \n\line 52.17by which the state itemized deduction exceeds the amount of the standard deduction as \n\line 52.18defined in section 63(c) of the Internal Revenue Code, minus any addition that would have \n\line 52.19been required under clause (17) if the taxpayer had claimed the standard deduction. For \n\line 52.20the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are \n\line 52.21the last itemized deductions disallowed under clause (15); \n\line 52.22 (3) the capital gain amount of a lump-sum distribution to which the special tax under \n\line 52.23section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies; \n\line 52.24 (4) the amount of income taxes paid or accrued within the taxable year under this \n\line 52.25chapter and taxes based on net income paid to any other state or any province or territory \n\line 52.26of Canada, to the extent allowed as a deduction in determining federal adjusted gross \n\line 52.27income. For the purpose of this paragraph, income taxes do not include the taxes imposed \n\line 52.28by sections \n\line 290.0922, subdivision 1, paragraph (b), \n\line 290.9727, \n\line 290.9728, and \n\line 290.9729; \n\line 52.29 (5) the amount of expense, interest, or taxes disallowed pursuant to section \n\line 290.10 \n\line \n\line 52.30other than expenses or interest used in computing net interest income for the subtraction \n\line 52.31allowed under subdivision 19b, clause (1); \n\line 52.32 (6) the amount of a partner's pro rata share of net income which does not flow \n\line 52.33through to the partner because the partnership elected to pay the tax on the income under \n\line 52.34section 6242(a)(2) of the Internal Revenue Code; \n\line 52.35 (7) 80 percent of the depreciation deduction allowed under section 168(k) of the \n\line 52.36Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that \n\line 53.1in the taxable year generates a deduction for depreciation under section 168(k) and the \n\line 53.2activity generates a loss for the taxable year that the taxpayer is not allowed to claim for \n\line 53.3the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is \n\line 53.4limited to excess of the depreciation claimed by the activity under section 168(k) over the \n\line 53.5amount of the loss from the activity that is not allowed in the taxable year. In succeeding \n\line 53.6taxable years when the losses not allowed in the taxable year are allowed, the depreciation \n\line 53.7under section 168(k) is allowed; \n\line 53.8 (8) 80 percent of the amount by which the deduction allowed by section 179 of the \n\line 53.9Internal Revenue Code exceeds the deduction allowable {\strike by}{\ul under the dollar limits of} \n\line 53.10section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003; \n\line 53.11 (9) to the extent deducted in computing federal taxable income, the amount of the \n\line 53.12deduction allowable under section 199 of the Internal Revenue Code; \n\line 53.13 (10) the amount of expenses disallowed under section 290.10, subdivision 2; \n\line 53.14 (11) for taxable years beginning before January 1, 2010, the amount deducted for \n\line 53.15qualified tuition and related expenses under section 222 of the Internal Revenue Code, to \n\line 53.16the extent deducted from gross income; \n\line 53.17 (12) for taxable years beginning before January 1, 2010, the amount deducted for \n\line 53.18certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) \n\line 53.19of the Internal Revenue Code, to the extent deducted from gross income; \n\line 53.20(13) discharge of indebtedness income resulting from reacquisition of business \n\line 53.21indebtedness and deferred under section 108(i) of the Internal Revenue Code; \n\line 53.22(14) changes to federal taxable income attributable to a net operating loss that the \n\line 53.23taxpayer elected to carry back for more than two years for federal purposes but for which \n\line 53.24the losses can be carried back for only two years under section \n\line 290.095, subdivision \n\line 53.2511\n\line , paragraph (c); \n\line 53.26(15) the amount of disallowed itemized deductions, but the amount of disallowed \n\line 53.27itemized deductions plus the addition required under clause (2) may not be more than the \n\line 53.28amount by which the itemized deductions as allowed under section 63(d) of the Internal \n\line 53.29Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of \n\line 53.30the Internal Revenue Code, and reduced by any addition that would have been required \n\line 53.31under clause (17) if the taxpayer had claimed the standard deduction: \n\line 53.32(i) the amount of disallowed itemized deductions is equal to the lesser of: \n\line 53.33(A) three percent of the excess of the taxpayer's federal adjusted gross income \n\line 53.34over the applicable amount; or \n\line 53.35(B) 80 percent of the amount of the itemized deductions otherwise allowable to the \n\line 53.36taxpayer under the Internal Revenue Code for the taxable year; \n\line 54.1(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a \n\line 54.2married individual filing a separate return. Each dollar amount shall be increased by \n\line 54.3an amount equal to: \n\line 54.4(A) such dollar amount, multiplied by \n\line 54.5(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal \n\line 54.6Revenue Code for the calendar year in which the taxable year begins, by substituting \n\line 54.7"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; \n\line 54.8(iii) the term "itemized deductions" does not include: \n\line 54.9(A) the deduction for medical expenses under section 213 of the Internal Revenue \n\line 54.10Code; \n\line 54.11(B) any deduction for investment interest as defined in section 163(d) of the Internal \n\line 54.12Revenue Code; and \n\line 54.13(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or \n\line 54.14theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue \n\line 54.15Code or for losses described in section 165(d) of the Internal Revenue Code; \n\line 54.16(16) the amount of disallowed personal exemptions for taxpayers with federal \n\line 54.17adjusted gross income over the threshold amount: \n\line 54.18(i) the disallowed personal exemption amount is equal to the number of personal \n\line 54.19exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied \n\line 54.20by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the \n\line 54.21Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal \n\line 54.22Revenue Code, and by the applicable percentage; \n\line 54.23(ii) "applicable percentage" means two percentage points for each $2,500 (or \n\line 54.24fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable \n\line 54.25year exceeds the threshold amount. In the case of a married individual filing a separate \n\line 54.26return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In \n\line 54.27no event shall the applicable percentage exceed 100 percent; \n\line 54.28(iii) the term "threshold amount" means: \n\line 54.29(A) $150,000 in the case of a joint return or a surviving spouse; \n\line 54.30(B) $125,000 in the case of a head of a household; \n\line 54.31(C) $100,000 in the case of an individual who is not married and who is not a \n\line 54.32surviving spouse or head of a household; and \n\line 54.33(D) $75,000 in the case of a married individual filing a separate return; and \n\line 54.34(iv) the thresholds shall be increased by an amount equal to: \n\line 54.35(A) such dollar amount, multiplied by \n\line 55.1(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal \n\line 55.2Revenue Code for the calendar year in which the taxable year begins, by substituting \n\line 55.3"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and \n\line 55.4(17) to the extent deducted in the computation of federal taxable income, for taxable \n\line 55.5years beginning after December 31, 2010, and before January 1, 2014, the difference \n\line 55.6between the standard deduction allowed under section 63(c) of the Internal Revenue Code \n\line 55.7and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue \n\line 55.8Code as amended through December 1, 2010. \n\line 55.9{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment, } \n\line 55.10{\ul except the changes incorporated by federal changes are effective retroactively at the same } \n\line 55.11{\ul time as the changes were effective for federal purposes.} \n\line \n\line 55.12 Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read: \n\line 55.13 Subd. 19b. Subtractions from federal taxable income. For individuals, estates, \n\line 55.14and trusts, there shall be subtracted from federal taxable income: \n\line 55.15 (1) net interest income on obligations of any authority, commission, or \n\line 55.16instrumentality of the United States to the extent includable in taxable income for federal \n\line 55.17income tax purposes but exempt from state income tax under the laws of the United States; \n\line 55.18 (2) if included in federal taxable income, the amount of any overpayment of income \n\line 55.19tax to Minnesota or to any other state, for any previous taxable year, whether the amount \n\line 55.20is received as a refund or as a credit to another taxable year's income tax liability; \n\line 55.21 (3) the amount paid to others, less the amount used to claim the credit allowed under \n\line 55.22section \n\line 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten \n\line 55.23to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and \n\line 55.24transportation of each qualifying child in attending an elementary or secondary school \n\line 55.25situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a \n\line 55.26resident of this state may legally fulfill the state's compulsory attendance laws, which \n\line 55.27is not operated for profit, and which adheres to the provisions of the Civil Rights Act \n\line 55.28of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or \n\line 55.29tuition as defined in section \n\line 290.0674, subdivision 1, clause (1). As used in this clause, \n\line 55.30"textbooks" includes books and other instructional materials and equipment purchased \n\line 55.31or leased for use in elementary and secondary schools in teaching only those subjects \n\line 55.32legally and commonly taught in public elementary and secondary schools in this state. \n\line 55.33Equipment expenses qualifying for deduction includes expenses as defined and limited in \n\line 55.34section \n\line 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional \n\line 55.35books and materials used in the teaching of religious tenets, doctrines, or worship, the \n\line 56.1purpose of which is to instill such tenets, doctrines, or worship, nor does it include books \n\line 56.2or materials for, or transportation to, extracurricular activities including sporting events, \n\line 56.3musical or dramatic events, speech activities, driver's education, or similar programs. No \n\line 56.4deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or \n\line 56.5the qualifying child's vehicle to provide such transportation for a qualifying child. For \n\line 56.6purposes of the subtraction provided by this clause, "qualifying child" has the meaning \n\line 56.7given in section 32(c)(3) of the Internal Revenue Code; \n\line 56.8 (4) income as provided under section \n\line 290.0802; \n\line 56.9 (5) to the extent included in federal adjusted gross income, income realized on \n\line 56.10disposition of property exempt from tax under section \n\line 290.491; \n\line 56.11 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) \n\line 56.12of the Internal Revenue Code in determining federal taxable income by an individual \n\line 56.13who does not itemize deductions for federal income tax purposes for the taxable year, an \n\line 56.14amount equal to 50 percent of the excess of charitable contributions over $500 allowable \n\line 56.15as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, \n\line 56.16under the provisions of Public Law 109-1 and Public Law 111-126; \n\line 56.17 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not \n\line 56.18qualify for a credit under section \n\line 290.06, subdivision 22, an amount equal to the carryover \n\line 56.19of subnational foreign taxes for the taxable year, but not to exceed the total subnational \n\line 56.20foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, \n\line 56.21"federal foreign tax credit" means the credit allowed under section 27 of the Internal \n\line 56.22Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed \n\line 56.23under section 904(c) of the Internal Revenue Code minus national level foreign taxes to \n\line 56.24the extent they exceed the federal foreign tax credit; \n\line 56.25 (8) in each of the five tax years immediately following the tax year in which an \n\line 56.26addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a \n\line 56.27shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the \n\line 56.28delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount \n\line 56.29of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, \n\line 56.30clause (12), in the case of a shareholder of an S corporation, minus the positive value of \n\line 56.31any net operating loss under section 172 of the Internal Revenue Code generated for the \n\line 56.32tax year of the addition. The resulting delayed depreciation cannot be less than zero; \n\line 56.33 (9) job opportunity building zone income as provided under section \n\line 469.316; \n\line 56.34 (10) to the extent included in federal taxable income, the amount of compensation \n\line 56.35paid to members of the Minnesota National Guard or other reserve components of the \n\line 56.36United States military for active service, including compensation for services performed \n\line 57.1under the Active Guard Reserve (AGR) program. For purposes of this clause, "active \n\line 57.2service" means (i) state active service as defined in section \n\line 190.05, subdivision 5a, clause \n\line 57.3(1); or (ii) federally funded state active service as defined in section \n\line 190.05, subdivision \n\line 57.45b\n\line , and "active service" includes service performed in accordance with section \n\line 190.08, \n\line 57.5subdivision 3\n\line ; \n\line 57.6 (11) to the extent included in federal taxable income, the amount of compensation \n\line 57.7paid to Minnesota residents who are members of the armed forces of the United States \n\line 57.8or United Nations for active duty performed under United States Code, title 10; or the \n\line 57.9authority of the United Nations; \n\line 57.10 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a \n\line 57.11qualified donor's donation, while living, of one or more of the qualified donor's organs \n\line 57.12to another person for human organ transplantation. For purposes of this clause, "organ" \n\line 57.13means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; \n\line 57.14"human organ transplantation" means the medical procedure by which transfer of a human \n\line 57.15organ is made from the body of one person to the body of another person; "qualified \n\line 57.16expenses" means unreimbursed expenses for both the individual and the qualified donor \n\line 57.17for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses \n\line 57.18may be subtracted under this clause only once; and "qualified donor" means the individual \n\line 57.19or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An \n\line 57.20individual may claim the subtraction in this clause for each instance of organ donation for \n\line 57.21transplantation during the taxable year in which the qualified expenses occur; \n\line 57.22 (13) {\strike in each of the five tax years immediately following the tax year in which an } \n\line 57.23{\strike addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a } \n\line 57.24{\strike shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the } \n\line 57.25{\strike addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the } \n\line 57.26{\strike case of a shareholder of a corporation that is an S corporation, minus the positive value of } \n\line 57.27{\strike any net operating loss under section 172 of the Internal Revenue Code generated for the } \n\line 57.28{\strike tax year of the addition. If the net operating loss exceeds the addition for the tax year, } \n\line 57.29{\strike a subtraction is not allowed under this clause}{\ul the section 179 expensing subtraction as } \n\line 57.30{\ul provided under section 290.0803, subdivision 3}; \n\line 57.31 (14) to the extent included in the federal taxable income of a nonresident of \n\line 57.32Minnesota, compensation paid to a service member as defined in United States Code, title \n\line 57.3310, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief \n\line 57.34Act, Public Law 108-189, section 101(2); \n\line 57.35 (15) to the extent included in federal taxable income, the amount of national service \n\line 57.36educational awards received from the National Service Trust under United States Code, \n\line 58.1title 42, sections 12601 to 12604, for service in an approved Americorps National Service \n\line 58.2program; \n\line 58.3(16) to the extent included in federal taxable income, discharge of indebtedness \n\line 58.4income resulting from reacquisition of business indebtedness included in federal taxable \n\line 58.5income under section 108(i) of the Internal Revenue Code. This subtraction applies only \n\line 58.6to the extent that the income was included in net income in a prior year as a result of the \n\line 58.7addition under subdivision 19a, clause (13); \n\line 58.8(17) the amount of the net operating loss allowed under section \n\line 290.095, subdivision \n\line 58.911\n\line , paragraph (c); \n\line 58.10(18) the amount of expenses not allowed for federal income tax purposes due \n\line 58.11to claiming the railroad track maintenance credit under section 45G(a) of the Internal \n\line 58.12Revenue Code; \n\line 58.13(19) the amount of the limitation on itemized deductions under section 68(b) of the \n\line 58.14Internal Revenue Code; \n\line 58.15(20) the amount of the phaseout of personal exemptions under section 151(d) of \n\line 58.16the Internal Revenue Code; {\strike and} \n\line 58.17{\strike (21) to the extent included in federal taxable income, the amount of qualified } \n\line 58.18{\strike transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal } \n\line 58.19{\strike Revenue Code. The subtraction is limited to the lesser of the amount of qualified } \n\line 58.20{\strike transportation fringe benefits received in excess of the limitations under section } \n\line 58.21{\strike 132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the } \n\line 58.22{\strike maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal } \n\line 58.23{\strike Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) } \n\line 58.24{\strike of the Internal Revenue Code.} \n\line 58.25{\ul (21) the amount equal to the contributions made during the taxable year to an } \n\line 58.26{\ul account in a plan qualifying under section 529 of the Internal Revenue Code, reduced by } \n\line 58.27{\ul any withdrawals from the account during the taxable year, not including amounts rolled } \n\line 58.28{\ul over from other accounts in plans qualifying under section 529 of the Internal Revenue } \n\line 58.29{\ul Code, and not to exceed $3,000 for married couples filing joint returns and $1,500 for } \n\line 58.30{\ul all other filers. The subtraction must not include any amount used to claim the credit } \n\line 58.31{\ul allowed under section 290.0684; and} \n\line 58.32{\ul (22) to the extent included in federal taxable income, the discharge of indebtedness } \n\line 58.33{\ul of the taxpayer if the indebtedness discharged is a qualified education loan, as defined in } \n\line 58.34{\ul section 221 of the Internal Revenue Code, and the indebtedness was discharged following } \n\line 58.35{\ul the taxpayer's completion of an income-driven repayment plan. For purposes of this } \n\line 58.36{\ul clause, "income-driven repayment plan" means a payment plan established by the United } \n\line 59.1{\ul States Department of Education that sets monthly student loan payments based on income } \n\line 59.2{\ul and family size under United States Code, title 20, section 1087e, or similar authority and } \n\line 59.3{\ul specifically includes, but is not limited to:} \n\line 59.4{\ul (1) the income-based repayment plan under United State Code, title 20, section 1098e;} \n\line 59.5{\ul (2) the income contingent repayment plan established under United State Code, } \n\line 59.6{\ul title 20, section 1087e, subsection (e); and} \n\line 59.7{\ul (3) the PAYE program or REPAYE program established by the Department of } \n\line 59.8{\ul Education under administrative regulations.} \n\line 59.9{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 59.10{\ul December 31, 2015.} \n\line \n\line 59.11 Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read: \n\line 59.12 Subd. 19c. Corporations; additions to federal taxable income. For corporations, \n\line 59.13there shall be added to federal taxable income: \n\line 59.14 (1) the amount of any deduction taken for federal income tax purposes for income, \n\line 59.15excise, or franchise taxes based on net income or related minimum taxes, including but not \n\line 59.16limited to the tax imposed under section \n\line 290.0922, paid by the corporation to Minnesota, \n\line 59.17another state, a political subdivision of another state, the District of Columbia, or any \n\line 59.18foreign country or possession of the United States; \n\line 59.19 (2) interest not subject to federal tax upon obligations of: the United States, its \n\line 59.20possessions, its agencies, or its instrumentalities; the state of Minnesota or any other \n\line 59.21state, any of its political or governmental subdivisions, any of its municipalities, or any \n\line 59.22of its governmental agencies or instrumentalities; the District of Columbia; or Indian \n\line 59.23tribal governments; \n\line 59.24 (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal \n\line 59.25Revenue Code; \n\line 59.26 (4) the amount of any net operating loss deduction taken for federal income tax \n\line 59.27purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss \n\line 59.28deduction under section 810 of the Internal Revenue Code; \n\line 59.29 (5) the amount of any special deductions taken for federal income tax purposes \n\line 59.30under sections 241 to 247 and 965 of the Internal Revenue Code; \n\line 59.31 (6) losses from the business of mining, as defined in section \n\line 290.05, subdivision 1, \n\line 59.32clause (a), that are not subject to Minnesota income tax; \n\line 59.33 (7) the amount of any capital losses deducted for federal income tax purposes under \n\line 59.34sections 1211 and 1212 of the Internal Revenue Code; \n\line 60.1 (8) the amount of percentage depletion deducted under sections 611 through 614 and \n\line 60.2291 of the Internal Revenue Code; \n\line 60.3 (9) for certified pollution control facilities placed in service in a taxable year \n\line 60.4beginning before December 31, 1986, and for which amortization deductions were elected \n\line 60.5under section 169 of the Internal Revenue Code of 1954, as amended through December \n\line 60.631, 1985, the amount of the amortization deduction allowed in computing federal taxable \n\line 60.7income for those facilities; \n\line 60.8 (10) the amount of a partner's pro rata share of net income which does not flow \n\line 60.9through to the partner because the partnership elected to pay the tax on the income under \n\line 60.10section 6242(a)(2) of the Internal Revenue Code; \n\line 60.11 (11) any increase in subpart F income, as defined in section 952(a) of the Internal \n\line 60.12Revenue Code, for the taxable year when subpart F income is calculated without regard to \n\line 60.13the provisions of Division C, title III, section 303(b) of Public Law 110-343; \n\line 60.14 (12) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A) \n\line 60.15and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer \n\line 60.16has an activity that in the taxable year generates a deduction for depreciation under \n\line 60.17section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year \n\line 60.18that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed \n\line 60.19under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the \n\line 60.20depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the \n\line 60.21amount of the loss from the activity that is not allowed in the taxable year. In succeeding \n\line 60.22taxable years when the losses not allowed in the taxable year are allowed, the depreciation \n\line 60.23under section 168(k)(1)(A) and (k)(4)(A) is allowed; \n\line 60.24 (13) 80 percent of the amount by which the deduction allowed by section 179 of \n\line 60.25the Internal Revenue Code exceeds the deduction allowable {\strike by}{\ul under the dollar limits of} \n\line 60.26section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003; \n\line 60.27 (14) to the extent deducted in computing federal taxable income, the amount of the \n\line 60.28deduction allowable under section 199 of the Internal Revenue Code; \n\line 60.29 (15) the amount of expenses disallowed under section \n\line 290.10, subdivision 2; and \n\line 60.30(16) discharge of indebtedness income resulting from reacquisition of business \n\line 60.31indebtedness and deferred under section 108(i) of the Internal Revenue Code. \n\line 60.32{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment, } \n\line 60.33{\ul except the changes incorporated by federal changes are effective retroactively at the same } \n\line 60.34{\ul time as the changes were effective for federal purposes.} \n\line \n\line 60.35 Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read: \n\line 61.1 Subd. 19d. Corporations; modifications decreasing federal taxable income. For \n\line 61.2corporations, there shall be subtracted from federal taxable income after the increases \n\line 61.3provided in subdivision 19c: \n\line 61.4 (1) the amount of foreign dividend gross-up added to gross income for federal \n\line 61.5income tax purposes under section 78 of the Internal Revenue Code; \n\line 61.6 (2) the amount of salary expense not allowed for federal income tax purposes due to \n\line 61.7claiming the work opportunity credit under section 51 of the Internal Revenue Code; \n\line 61.8 (3) any dividend (not including any distribution in liquidation) paid within the \n\line 61.9taxable year by a national or state bank to the United States, or to any instrumentality of \n\line 61.10the United States exempt from federal income taxes, on the preferred stock of the bank \n\line 61.11owned by the United States or the instrumentality; \n\line 61.12 (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the \n\line 61.13Internal Revenue Code, except that: \n\line 61.14 (i) for capital losses incurred in taxable years beginning after December 31, 1986, \n\line 61.15capital loss carrybacks shall not be allowed; \n\line 61.16 (ii) for capital losses incurred in taxable years beginning after December 31, 1986, \n\line 61.17a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be \n\line 61.18allowed; \n\line 61.19 (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a \n\line 61.20capital loss carryback to each of the three taxable years preceding the loss year, subject to \n\line 61.21the provisions of Minnesota Statutes 1986, section \n\line 290.16, shall be allowed; and \n\line 61.22 (iv) for capital losses incurred in taxable years beginning before January 1, 1987, \n\line 61.23a capital loss carryover to each of the five taxable years succeeding the loss year to the \n\line 61.24extent such loss was not used in a prior taxable year and subject to the provisions of \n\line 61.25Minnesota Statutes 1986, section \n\line 290.16, shall be allowed; \n\line 61.26 (5) an amount for interest and expenses relating to income not taxable for federal \n\line 61.27income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and \n\line 61.28expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or \n\line 61.29291 of the Internal Revenue Code in computing federal taxable income; \n\line 61.30 (6) in the case of mines, oil and gas wells, other natural deposits, and timber for \n\line 61.31which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a \n\line 61.32reasonable allowance for depletion based on actual cost. In the case of leases the deduction \n\line 61.33must be apportioned between the lessor and lessee in accordance with rules prescribed \n\line 61.34by the commissioner. In the case of property held in trust, the allowable deduction must \n\line 61.35be apportioned between the income beneficiaries and the trustee in accordance with the \n\line 62.1pertinent provisions of the trust, or if there is no provision in the instrument, on the basis \n\line 62.2of the trust's income allocable to each; \n\line 62.3 (7) for certified pollution control facilities placed in service in a taxable year \n\line 62.4beginning before December 31, 1986, and for which amortization deductions were elected \n\line 62.5under section 169 of the Internal Revenue Code of 1954, as amended through December \n\line 62.631, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes \n\line 62.71986, section \n\line 290.09, subdivision 7; \n\line 62.8 (8) amounts included in federal taxable income that are due to refunds of income, \n\line 62.9excise, or franchise taxes based on net income or related minimum taxes paid by the \n\line 62.10corporation to Minnesota, another state, a political subdivision of another state, the \n\line 62.11District of Columbia, or a foreign country or possession of the United States to the extent \n\line 62.12that the taxes were added to federal taxable income under subdivision 19c, clause (1), in a \n\line 62.13prior taxable year; \n\line 62.14 (9) income or gains from the business of mining as defined in section \n\line 290.05, \n\line 62.15subdivision 1\n\line , clause (a), that are not subject to Minnesota franchise tax; \n\line 62.16 (10) the amount of disability access expenditures in the taxable year which are not \n\line 62.17allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code; \n\line 62.18 (11) the amount of qualified research expenses not allowed for federal income tax \n\line 62.19purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that \n\line 62.20the amount exceeds the amount of the credit allowed under section \n\line 290.068; \n\line 62.21 (12) the amount of salary expenses not allowed for federal income tax purposes due to \n\line 62.22claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code; \n\line 62.23 (13) any decrease in subpart F income, as defined in section 952(a) of the Internal \n\line 62.24Revenue Code, for the taxable year when subpart F income is calculated without regard to \n\line 62.25the provisions of Division C, title III, section 303(b) of Public Law 110-343; \n\line 62.26 (14) in each of the five tax years immediately following the tax year in which an \n\line 62.27addition is required under subdivision 19c, clause (12), an amount equal to one-fifth of \n\line 62.28the delayed depreciation. For purposes of this clause, "delayed depreciation" means the \n\line 62.29amount of the addition made by the taxpayer under subdivision 19c, clause (12). The \n\line 62.30resulting delayed depreciation cannot be less than zero; \n\line 62.31 (15) {\strike in each of the five tax years immediately following the tax year in which an } \n\line 62.32{\strike addition is required under subdivision 19c, clause (13), an amount equal to one-fifth } \n\line 62.33{\strike of the amount of the addition}{\ul the section 179 expensing subtraction as provided under } \n\line 62.34{\ul section 290.0803, subdivision 3}; \n\line 62.35(16) to the extent included in federal taxable income, discharge of indebtedness \n\line 62.36income resulting from reacquisition of business indebtedness included in federal taxable \n\line 63.1income under section 108(i) of the Internal Revenue Code. This subtraction applies only \n\line 63.2to the extent that the income was included in net income in a prior year as a result of the \n\line 63.3addition under subdivision 19c, clause (16); and \n\line 63.4(17) the amount of expenses not allowed for federal income tax purposes due \n\line 63.5to claiming the railroad track maintenance credit under section 45G(a) of the Internal \n\line 63.6Revenue Code. \n\line 63.7{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 63.8{\ul December 31, 2015.} \n\line \n\line 63.9 Sec. 9. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 31, is \n\line 63.10amended to read: \n\line 63.11 Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal \n\line 63.12Revenue Code" means the Internal Revenue Code of 1986, as amended through December \n\line 63.1331, {\strike 2014}{\ul 2015}. Internal Revenue Code also includes any uncodified provision in federal \n\line 63.14law that relates to provisions of the Internal Revenue Code that are incorporated into \n\line 63.15Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, \n\line 63.16subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as \n\line 63.17amended through March 18, 2010. \n\line 63.18{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment, } \n\line 63.19{\ul except the changes incorporated by federal changes are effective retroactively at the same } \n\line 63.20{\ul time as the changes were effective for federal purposes.} \n\line \n\line 63.21 Sec. 10. Minnesota Statutes 2014, section 290.06, subdivision 22, is amended to read: \n\line 63.22 Subd. 22. Credit for taxes paid to another state. (a) A taxpayer who is liable for \n\line 63.23taxes based on net income to another state, as provided in paragraphs (b) through (f), upon \n\line 63.24income allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to \n\line 63.25another state if the tax is actually paid in the taxable year or a subsequent taxable year. A \n\line 63.26taxpayer who is a resident of this state pursuant to section \n\line 290.01, subdivision 7, paragraph \n\line 63.27(b), and who is subject to income tax as a resident in the state of the individual's domicile \n\line 63.28is not allowed this credit unless the state of domicile does not allow a similar credit. \n\line 63.29(b) For an individual, estate, or trust, the credit is determined by multiplying the tax \n\line 63.30payable under this chapter by the ratio derived by dividing the income subject to tax in the \n\line 63.31other state that is also subject to tax in Minnesota while a resident of Minnesota by the \n\line 63.32taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue \n\line 63.33Code, modified by the addition required by section \n\line 290.01, subdivision 19a, clause (1), \n\line 64.1and the subtraction allowed by section \n\line 290.01, subdivision 19b, clause (1), to the extent \n\line 64.2the income is allocated or assigned to Minnesota under sections \n\line 290.081 and \n\line 290.17. \n\line 64.3(c) If the taxpayer is an athletic team that apportions all of its income under section \n\line \n\line 64.4290.17, subdivision 5\n\line , the credit is determined by multiplying the tax payable under this \n\line 64.5chapter by the ratio derived from dividing the total net income subject to tax in the other \n\line 64.6state by the taxpayer's Minnesota taxable income. \n\line 64.7(d) {\ul (1) }The credit determined under paragraph (b) or (c) shall not exceed the amount \n\line 64.8of tax so paid to the other state on the gross income earned within the other state subject \n\line 64.9to tax under this chapter{\strike ,}{\ul .} \n\line 64.10{\strike nor shall} {\ul (2) }The allowance of the credit {\ul does not }reduce the taxes paid under this \n\line 64.11chapter to an amount less than what would be assessed if {\strike such income amount was} {\ul the } \n\line 64.12{\ul gross income earned within the other state were }excluded from taxable net income. \n\line 64.13(e) In the case of the tax assessed on a lump-sum distribution under section \n\line \n\line 64.14290.032\n\line , the credit allowed under paragraph (a) is the tax assessed by the other state on \n\line 64.15the lump-sum distribution that is also subject to tax under section \n\line 290.032, and shall \n\line 64.16not exceed the tax assessed under section \n\line 290.032. To the extent the total lump-sum \n\line 64.17distribution defined in section \n\line 290.032, subdivision 1, includes lump-sum distributions \n\line 64.18received in prior years or is all or in part an annuity contract, the reduction to the tax on \n\line 64.19the lump-sum distribution allowed under section \n\line 290.032, subdivision 2, includes tax paid \n\line 64.20to another state that is properly apportioned to that distribution. \n\line 64.21(f) If a Minnesota resident reported an item of income to Minnesota and is assessed \n\line 64.22tax in such other state on that same income after the Minnesota statute of limitations \n\line 64.23has expired, the taxpayer shall receive a credit for that year under paragraph (a), \n\line 64.24notwithstanding any statute of limitations to the contrary. The claim for the credit must \n\line 64.25be submitted within one year from the date the taxes were paid to the other state. The \n\line 64.26taxpayer must submit sufficient proof to show entitlement to a credit. \n\line 64.27(g) For the purposes of this subdivision, a resident shareholder of a corporation \n\line 64.28treated as an "S" corporation under section \n\line 290.9725, must be considered to have paid \n\line 64.29a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share \n\line 64.30of any net income tax paid by the S corporation to another state. For the purposes of the \n\line 64.31preceding sentence, the term "net income tax" means any tax imposed on or measured by \n\line 64.32a corporation's net income. \n\line 64.33(h) For the purposes of this subdivision, a resident partner of an entity taxed as a \n\line 64.34partnership under the Internal Revenue Code must be considered to have paid a tax imposed \n\line 64.35on the partner in an amount equal to the partner's pro rata share of any net income tax paid \n\line 65.1by the partnership to another state. For purposes of the preceding sentence, the term "net \n\line 65.2income" tax means any tax imposed on or measured by a partnership's net income. \n\line 65.3(i) For the purposes of this subdivision, "another state": \n\line 65.4(1) includes: \n\line 65.5(i) the District of Columbia; and \n\line 65.6(ii) a province or territory of Canada; but \n\line 65.7(2) excludes Puerto Rico and the several territories organized by Congress. \n\line 65.8(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a \n\line 65.9state by state basis. \n\line 65.10(k) For a tax imposed by a province or territory of Canada, the tax for purposes of \n\line 65.11this subdivision is the excess of the tax over the amount of the foreign tax credit allowed \n\line 65.12under section 27 of the Internal Revenue Code. In determining the amount of the foreign \n\line 65.13tax credit allowed, the net income taxes imposed by Canada on the income are deducted \n\line 65.14first. Any remaining amount of the allowable foreign tax credit reduces the provincial or \n\line 65.15territorial tax that qualifies for the credit under this subdivision. \n\line 65.16{\ul (l) If the amount of the credit which a qualifying individual is eligible to receive } \n\line 65.17{\ul under this section for tax paid to a qualifying state, disregarding the limitation in paragraph } \n\line 65.18{\ul (d), clause (2), exceeds the tax due under this chapter, the commissioner shall refund the } \n\line 65.19{\ul excess to the individual. An amount sufficient to pay the refunds required by this section } \n\line 65.20{\ul is appropriated to the commissioner from the general fund. } \n\line 65.21{\ul For purposes of this paragraph, "qualifying individual" means a Minnesota resident under } \n\line 65.22{\ul section 290.01, subdivision 7, paragraph (a), who received compensation during the } \n\line 65.23{\ul taxable year for the performance of personal or professional services within a qualifying } \n\line 65.24{\ul state, and "qualifying state" means a state with which an agreement under section 290.081 } \n\line 65.25{\ul is not in effect for the taxable year but was in effect for a taxable year beginning before } \n\line 65.26{\ul January 1, 2010.} \n\line 65.27{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 65.28{\ul December 31, 2015.} \n\line \n\line 65.29 Sec. 11. Minnesota Statutes 2014, section 290.067, subdivision 1, is amended to read: \n\line 65.30 Subdivision 1. Amount of credit. (a) A taxpayer may take as a credit against the \n\line 65.31tax due from the taxpayer and a spouse, if any, under this chapter an amount equal to the \n\line 65.32dependent care credit for which the taxpayer is eligible pursuant to the provisions of \n\line 65.33section 21 of the Internal Revenue Code {\strike subject to the limitations provided in subdivision } \n\line 65.34{\strike 2} except that in determining whether the child qualified as a dependent, income received \n\line 65.35as a Minnesota family investment program grant or allowance to or on behalf of the child \n\line 66.1must not be taken into account in determining whether the child received more than half \n\line 66.2of the child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of \n\line 66.3the Internal Revenue Code do not apply. \n\line 66.4(b) If a child who has not attained the age of six years at the close of the taxable year \n\line 66.5is cared for at a licensed family day care home operated by the child's parent, the taxpayer \n\line 66.6is deemed to have paid employment-related expenses. If the child is 16 months old or \n\line 66.7younger at the close of the taxable year, the amount of expenses deemed to have been paid \n\line 66.8equals the maximum limit for one qualified individual under section 21(c) and (d) of the \n\line 66.9Internal Revenue Code. If the child is older than 16 months of age but has not attained the \n\line 66.10age of six years at the close of the taxable year, the amount of expenses deemed to have \n\line 66.11been paid equals the amount the licensee would charge for the care of a child of the same \n\line 66.12age for the same number of hours of care. \n\line 66.13(c) If a married couple: \n\line 66.14(1) has a child who has not attained the age of one year at the close of the taxable year; \n\line 66.15(2) files a joint tax return for the taxable year; and \n\line 66.16(3) does not participate in a dependent care assistance program as defined in section \n\line 66.17129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid \n\line 66.18for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of \n\line 66.19(i) the combined earned income of the couple or (ii) the amount of the maximum limit for \n\line 66.20one qualified individual under section 21(c) and (d) of the Internal Revenue Code will \n\line 66.21be deemed to be the employment related expense paid for that child. The earned income \n\line 66.22limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed \n\line 66.23amount. These deemed amounts apply regardless of whether any employment-related \n\line 66.24expenses have been paid. \n\line 66.25(d) If the taxpayer is not required and does not file a federal individual income tax \n\line 66.26return for the tax year, no credit is allowed for any amount paid to any person unless: \n\line 66.27(1) the name, address, and taxpayer identification number of the person are included \n\line 66.28on the return claiming the credit; or \n\line 66.29(2) if the person is an organization described in section 501(c)(3) of the Internal \n\line 66.30Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code, \n\line 66.31the name and address of the person are included on the return claiming the credit. \n\line 66.32In the case of a failure to provide the information required under the preceding sentence, \n\line 66.33the preceding sentence does not apply if it is shown that the taxpayer exercised due \n\line 66.34diligence in attempting to provide the information required. \n\line 66.35(e) In the case of a nonresident, part-year resident, or a person who has earned \n\line 66.36income not subject to tax under this chapter including earned income excluded pursuant to \n\line 67.1section \n\line 290.01, subdivision 19b, clause (9), the credit determined under section 21 of the \n\line 67.2Internal Revenue Code must be allocated based on the ratio by which the earned income \n\line 67.3of the claimant and the claimant's spouse from Minnesota sources bears to the total earned \n\line 67.4income of the claimant and the claimant's spouse. \n\line 67.5(f) For residents of Minnesota, the subtractions for military pay under section \n\line \n\line 67.6290.01, subdivision 19b\n\line , clauses (10) and (11), are not considered "earned income not \n\line 67.7subject to tax under this chapter." \n\line 67.8(g) For residents of Minnesota, the exclusion of combat pay under section 112 of \n\line 67.9the Internal Revenue Code is not considered "earned income not subject to tax under \n\line 67.10this chapter." \n\line 67.11{\ul (h) For taxpayers with federal adjusted gross income in excess of $38,000, the } \n\line 67.12{\ul credit is equal to the lesser of the credit otherwise calculated under this subdivision or the } \n\line 67.13{\ul amount equal to the credit otherwise calculated under this subdivision minus ten percent } \n\line 67.14{\ul of federal adjusted gross income in excess of $38,000, but in no case is the credit less than } \n\line 67.15{\ul zero. For purposes of this paragraph, "federal adjusted gross income" has the meaning } \n\line 67.16{\ul given in section 62 of the Internal Revenue Code.} \n\line 67.17{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 67.18{\ul December 31, 2015.} \n\line \n\line 67.19 Sec. 12. Minnesota Statutes 2014, section 290.067, subdivision 2b, is amended to read: \n\line 67.20 Subd. 2b. Inflation adjustment. The commissioner shall adjust the dollar amount \n\line 67.21of the income threshold at which the maximum credit begins to be reduced under \n\line 67.22subdivision {\strike 2}{\ul 1} by the percentage determined pursuant to the provisions of section 1(f) of \n\line 67.23the Internal Revenue Code, except that in section 1(f)(3)(B) the word {\strike "1999"}{\ul "2015"} shall \n\line 67.24be substituted for the word "1992." For {\strike 2001}{\ul 2017}, the commissioner shall then determine \n\line 67.25the percent change from the 12 months ending on August 31, {\strike 1999}{\ul 2015}, to the 12 months \n\line 67.26ending on August 31, {\strike 2000}{\ul 2016}, and in each subsequent year, from the 12 months ending \n\line 67.27on August 31, {\strike 1999}{\ul 2015}, to the 12 months ending on August 31 of the year preceding the \n\line 67.28taxable year. The determination of the commissioner pursuant to this subdivision must not \n\line 67.29be considered a "rule" and is not subject to the Administrative Procedure Act contained in \n\line 67.30chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount. \n\line 67.31If the amount ends in $5, the amount is rounded up to the nearest $10 amount. \n\line 67.32{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 67.33{\ul December 31, 2016.} \n\line \n\line 68.1 Sec. 13. Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1, \n\line 68.2is amended to read: \n\line 68.3 Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is \n\line 68.4allowed a credit against the tax imposed by this chapter equal to a percentage of earned \n\line 68.5income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of \n\line 68.6the Internal Revenue Code{\strike .}{\ul , except that:} \n\line 68.7{\ul (i) the earned income and adjusted gross income limitations of section 32 of the } \n\line 68.8{\ul Internal Revenue Code do not apply; and} \n\line 68.9{\ul (ii) a taxpayer with no qualifying children who has attained the age of 21 but not } \n\line 68.10{\ul attained age 65 before the close of the taxable year and is otherwise eligible for a credit } \n\line 68.11{\ul under section 32 of the Internal Revenue Code may also receive a credit.} \n\line 68.12(b) For individuals with no qualifying children, the credit equals {\strike 2.10}{\ul three} percent \n\line 68.13of the first {\strike $6,180}{\ul $6,500} of earned income. The credit is reduced by {\strike 2.01}{\ul three} percent \n\line 68.14of earned income or adjusted gross income, whichever is greater, in excess of {\strike $8,130}{\ul } \n\line 68.15{\ul $12,000}, but in no case is the credit less than zero. \n\line 68.16(c) For individuals with one qualifying child, the credit equals {\strike 9.35}{\ul 12.71} percent \n\line 68.17of the first {\strike $11,120}{\ul $8,350} of earned income. The credit is reduced by {\strike 6.02}{\ul 5.2} percent \n\line 68.18of earned income or adjusted gross income, whichever is greater, in excess of {\strike $21,190}{\ul } \n\line 68.19{\ul $21,620}, but in no case is the credit less than zero. \n\line 68.20(d) For individuals with two or more qualifying children, the credit equals {\strike 11}{\ul 14.94} \n\line 68.21percent of the first {\strike $18,240}{\ul $13,700} of earned income. The credit is reduced by {\strike 10.82}{\ul } \n\line 68.22{\ul 9.2} percent of earned income or adjusted gross income, whichever is greater, in excess of \n\line 68.23{\strike $25,130}{\ul $25,640}, but in no case is the credit less than zero. \n\line 68.24(e) For a part-year resident, the credit must be allocated based on the percentage \n\line 68.25calculated under section \n\line 290.06, subdivision 2c, paragraph (e). \n\line 68.26(f) For a person who was a resident for the entire tax year and has earned income \n\line 68.27not subject to tax under this chapter, including income excluded under section \n\line 290.01, \n\line 68.28subdivision 19b\n\line , clause (9), the credit must be allocated based on the ratio of federal \n\line 68.29adjusted gross income reduced by the earned income not subject to tax under this chapter \n\line 68.30over federal adjusted gross income. For purposes of this paragraph, the subtractions \n\line 68.31for military pay under section \n\line 290.01, subdivision 19b, clauses (10) and (11), are not \n\line 68.32considered "earned income not subject to tax under this chapter." \n\line 68.33For the purposes of this paragraph, the exclusion of combat pay under section 112 \n\line 68.34of the Internal Revenue Code is not considered "earned income not subject to tax under \n\line 68.35this chapter." \n\line 69.1(g) For tax years beginning after {\strike December 31, 2007, and before December 31, 2010, } \n\line 69.2{\strike and for tax years beginning after} December 31, 2017, the {\strike $8,130}{\ul $12,000} in paragraph \n\line 69.3(b), the {\strike $21,190}{\ul $21,620} in paragraph (c), and the {\strike $25,130}{\ul $25,640} in paragraph (d), \n\line 69.4after being adjusted for inflation under subdivision 7, are each increased by $3,000 for \n\line 69.5married taxpayers filing joint returns. For tax years beginning after December 31, {\strike 2008}{\ul } \n\line 69.6{\ul 2017}, the commissioner shall annually adjust the $3,000 by the percentage determined \n\line 69.7pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in \n\line 69.8section 1(f)(3)(B), the word "2007" shall be substituted for the word "1992." For {\strike 2009}{\ul } \n\line 69.9{\ul 2018}, the commissioner shall then determine the percent change from the 12 months \n\line 69.10ending on August 31, 2007, to the 12 months ending on August 31, {\strike 2008}{\ul 2017}, and in \n\line 69.11each subsequent year, from the 12 months ending on August 31, 2007, to the 12 months \n\line 69.12ending on August 31 of the year preceding the taxable year. The earned income thresholds \n\line 69.13as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the \n\line 69.14amount is rounded up to the nearest $10. The determination of the commissioner under \n\line 69.15this subdivision is not a rule under the Administrative Procedure Act. \n\line 69.16(h){\strike (1) For tax years beginning after December 31, 2012, and before January 1, 2014, } \n\line 69.17{\strike the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph } \n\line 69.18{\strike (d), after being adjusted for inflation under subdivision 7, are increased by $5,340 for } \n\line 69.19{\strike married taxpayers filing joint returns; and (2)} For tax years beginning after December 31, \n\line 69.20{\strike 2013}{\ul 2015}, and before January 1, 2018, the {\strike $8,130}{\ul $12,000} in paragraph (b), the {\strike $21,190}{\ul } \n\line 69.21{\ul $21,620} in paragraph (c), and the {\strike $25,130}{\ul $25,640} in paragraph (d), after being adjusted \n\line 69.22for inflation under subdivision 7, are each increased by $5,000 for married taxpayers filing \n\line 69.23joint returns. For tax years beginning {\strike after December 31, 2010, and before January 1, } \n\line 69.24{\strike 2012, and for tax years beginning} after December 31, {\strike 2013}{\ul 2015}, and before January 1, \n\line 69.252018, the commissioner shall annually adjust the $5,000 by the percentage determined \n\line 69.26pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in \n\line 69.27section 1(f)(3)(B), the word "2008" shall be substituted for the word "1992." For {\strike 2011}{\ul } \n\line 69.28{\ul 2016}, the commissioner shall then determine the percent change from the 12 months \n\line 69.29ending on August 31, 2008, to the 12 months ending on August 31, {\strike 2010}{\ul 2015}, and in \n\line 69.30each subsequent year, from the 12 months ending on August 31, 2008, to the 12 months \n\line 69.31ending on August 31 of the year preceding the taxable year. The earned income thresholds \n\line 69.32as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the \n\line 69.33amount is rounded up to the nearest $10. The determination of the commissioner under \n\line 69.34this subdivision is not a rule under the Administrative Procedure Act. \n\line 69.35(i) The commissioner shall construct tables showing the amount of the credit at \n\line 69.36various income levels and make them available to taxpayers. The tables shall follow \n\line 70.1the schedule contained in this subdivision, except that the commissioner may graduate \n\line 70.2the transition between income brackets. \n\line 70.3{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 70.4{\ul December 31, 2015.} \n\line \n\line 70.5 Sec. 14. Minnesota Statutes 2014, section 290.0671, subdivision 7, is amended to read: \n\line 70.6 Subd. 7. Inflation adjustment. The earned income amounts used to calculate \n\line 70.7the credit and the income thresholds at which the maximum credit begins to be reduced \n\line 70.8in subdivision 1 must be adjusted for inflation. The commissioner shall adjust by the \n\line 70.9percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue \n\line 70.10Code, except that in section 1(f)(3)(B) the word {\strike "2013"}{\ul "2015"} shall be substituted for \n\line 70.11the word "1992." For {\strike 2015}{\ul 2017}, the commissioner shall then determine the percent \n\line 70.12change from the 12 months ending on August 31, {\strike 2013}{\ul 2015}, to the 12 months ending \n\line 70.13on August 31, {\strike 2014}{\ul 2016}, and in each subsequent year, from the 12 months ending on \n\line 70.14August 31, {\strike 2013}{\ul 2015}, to the 12 months ending on August 31 of the year preceding the \n\line 70.15taxable year. The earned income thresholds as adjusted for inflation must be rounded to \n\line 70.16the nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest \n\line 70.17$10 amount. The determination of the commissioner under this subdivision is not a rule \n\line 70.18under the Administrative Procedure Act. \n\line 70.19{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 70.20{\ul December 31, 2016.} \n\line \n\line 70.21 Sec. 15. Minnesota Statutes 2014, section 290.0674, subdivision 2, is amended to read: \n\line 70.22 Subd. 2. Limitations. (a) For claimants with income not greater than $33,500, the \n\line 70.23maximum credit allowed for a family is $1,000 multiplied by the number of qualifying \n\line 70.24children in kindergarten through grade 12 in the family. The maximum credit for families \n\line 70.25with one qualifying child in kindergarten through grade 12 is reduced by $1 for each $4 of \n\line 70.26household income over $33,500, and the maximum credit for families with two or more \n\line 70.27qualifying children in kindergarten through grade 12 is reduced by $2 for each $4 of \n\line 70.28household income over $33,500, but in no case is the credit less than zero. \n\line 70.29For purposes of this section "income" has the meaning given in {\strike section 290.067,} \n\line 70.30subdivision 2a. In the case of a married claimant, a credit is not allowed unless a joint \n\line 70.31income tax return is filed. \n\line 71.1(b) For a nonresident or part-year resident, the credit determined under subdivision 1 \n\line 71.2and the maximum credit amount in paragraph (a) must be allocated using the percentage \n\line 71.3calculated in section \n\line 290.06, subdivision 2c, paragraph (e). \n\line 71.4{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 71.5{\ul December 31, 2015.} \n\line \n\line 71.6 Sec. 16. Minnesota Statutes 2014, section 290.0674, is amended by adding a \n\line 71.7subdivision to read: \n\line 71.8 {\ul Subd. 2a.} {\ul Income.} {\ul (a) For purposes of this section, "income" means the sum of } \n\line 71.9{\ul the following:} \n\line 71.10{\ul (1) federal adjusted gross income as defined in section 62 of the Internal Revenue } \n\line 71.11{\ul Code; and} \n\line 71.12{\ul (2) the sum of the following amounts to the extent not included in clause (1):} \n\line 71.13{\ul (i) all nontaxable income;} \n\line 71.14{\ul (ii) the amount of a passive activity loss that is not disallowed as a result of section } \n\line 71.15{\ul 469, paragraph (i) or (m), of the Internal Revenue Code and the amount of passive activity } \n\line 71.16{\ul loss carryover allowed under section 469(b) of the Internal Revenue Code;} \n\line 71.17{\ul (iii) an amount equal to the total of any discharge of qualified farm indebtedness } \n\line 71.18{\ul of a solvent individual excluded from gross income under section 108(g) of the Internal } \n\line 71.19{\ul Revenue Code;} \n\line 71.20{\ul (iv) cash public assistance and relief;} \n\line 71.21{\ul (v) any pension or annuity (including railroad retirement benefits, all payments } \n\line 71.22{\ul received under the federal Social Security Act, Supplemental Security Income, and } \n\line 71.23{\ul veterans benefits), which was not exclusively funded by the claimant or spouse, or which } \n\line 71.24{\ul was funded exclusively by the claimant or spouse and which funding payments were } \n\line 71.25{\ul excluded from federal adjusted gross income in the years when the payments were made;} \n\line 71.26{\ul (vi) interest received from the federal or a state government or any instrumentality } \n\line 71.27{\ul or political subdivision thereof;} \n\line 71.28{\ul (vii) workers' compensation;} \n\line 71.29{\ul (viii) nontaxable strike benefits;} \n\line 71.30{\ul (ix) the gross amounts of payments received in the nature of disability income or } \n\line 71.31{\ul sick pay as a result of accident, sickness, or other disability, whether funded through } \n\line 71.32{\ul insurance or otherwise;} \n\line 71.33{\ul (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of } \n\line 71.34{\ul 1986, as amended through December 31, 1995;} \n\line 72.1{\ul (xi) contributions made by the claimant to an individual retirement account, } \n\line 72.2{\ul including a qualified voluntary employee contribution; simplified employee pension plan; } \n\line 72.3{\ul self-employed retirement plan; cash or deferred arrangement plan under section 401(k) } \n\line 72.4{\ul of the Internal Revenue Code; or deferred compensation plan under section 457 of the } \n\line 72.5{\ul Internal Revenue Code;} \n\line 72.6{\ul (xii) nontaxable scholarship or fellowship grants;} \n\line 72.7{\ul (xiii) the amount of deduction allowed under section 199 of the Internal Revenue } \n\line 72.8{\ul Code;} \n\line 72.9{\ul (xiv) the amount of deduction allowed under section 220 or 223 of the Internal } \n\line 72.10{\ul Revenue Code;} \n\line 72.11{\ul (xv) the amount deducted for tuition expenses under section 222 of the Internal } \n\line 72.12{\ul Revenue Code; and} \n\line 72.13{\ul (xvi) the amount deducted for certain expenses of elementary and secondary school } \n\line 72.14{\ul teachers under section 62(a)(2)(D) of the Internal Revenue Code.} \n\line 72.15{\ul In the case of an individual who files an income tax return on a fiscal year basis, the } \n\line 72.16{\ul term "federal adjusted gross income" means federal adjusted gross income reflected in the } \n\line 72.17{\ul fiscal year ending in the next calendar year. Federal adjusted gross income may not be } \n\line 72.18{\ul reduced by the amount of a net operating loss carryback or carryforward or a capital loss } \n\line 72.19{\ul carryback or carryforward allowed for the year.} \n\line 72.20{\ul (b) "Income" does not include:} \n\line 72.21{\ul (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;} \n\line 72.22{\ul (2) amounts of any pension or annuity that were exclusively funded by the claimant } \n\line 72.23{\ul or spouse if the funding payments were not excluded from federal adjusted gross income } \n\line 72.24{\ul in the years when the payments were made;} \n\line 72.25{\ul (3) surplus food or other relief in kind supplied by a governmental agency;} \n\line 72.26{\ul (4) relief granted under chapter 290A;} \n\line 72.27{\ul (5) child support payments received under a temporary or final decree of dissolution } \n\line 72.28{\ul or legal separation; and} \n\line 72.29{\ul (6) restitution payments received by eligible individuals and excludable interest as } \n\line 72.30{\ul defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of } \n\line 72.31{\ul 2001, Public Law 107-16.} \n\line 72.32{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 72.33{\ul December 31, 2015.} \n\line \n\line 72.34 Sec. 17. Minnesota Statutes 2014, section 290.0677, subdivision 1a, is amended to read: \n\line 73.1 Subd. 1a. Credit allowed; past military service. (a) A qualified individual is \n\line 73.2allowed a credit against the tax imposed under this chapter for past military service. \n\line 73.3The credit equals {\strike $750}{\ul $1,000}. The credit allowed under this subdivision is reduced by \n\line 73.4ten percent of adjusted gross income in excess of {\strike $30,000}{\ul $50,000}, but in no case is \n\line 73.5the credit less than zero. \n\line 73.6 (b) For a nonresident or a part-year resident, the credit under this subdivision \n\line 73.7must be allocated based on the percentage calculated under section \n\line 290.06, subdivision \n\line 73.82c\n\line , paragraph (e). \n\line 73.9{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 73.10{\ul December 31, 2015.} \n\line \n\line 73.11 Sec. 18. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read: \n\line 73.12 Subd. 2. Definitions. For purposes of this section, the following terms have the \n\line 73.13meanings given. \n\line 73.14 (a) "Qualified research expenses" means (i) qualified research expenses and basic \n\line 73.15research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except \n\line 73.16it does not include expenses incurred for qualified research or basic research conducted \n\line 73.17outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue \n\line 73.18Code; and (ii) contributions to a nonprofit corporation established and operated pursuant \n\line 73.19to the provisions of chapter 317A for the purpose of promoting the establishment and \n\line 73.20expansion of business in this state, provided the contributions are invested by the nonprofit \n\line 73.21corporation for the purpose of providing funds for small, technologically innovative \n\line 73.22enterprises in Minnesota during the early stages of their development. \n\line 73.23 (b) "Qualified research" means qualified research as defined in section 41(d) of the \n\line 73.24Internal Revenue Code, except that the term does not include qualified research conducted \n\line 73.25outside the state of Minnesota. \n\line 73.26 (c) "Base amount" means base amount as defined in section 41(c) of the Internal \n\line 73.27Revenue Code, except that the average annual gross receipts must be calculated using \n\line 73.28Minnesota sales or receipts under section \n\line 290.191 and the definitions contained in clauses \n\line 73.29(a) and (b) shall apply.{\ul If there are inadequate records or the records are unavailable to } \n\line 73.30{\ul compute or verify the base percentage, a fixed base percentage of 16 percent must be used.} \n\line 73.31{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 73.32{\ul December 31, 2015.} \n\line \n\line 74.1 Sec. 19. {\ul [290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN } \n\line 74.2{\ul TEACHER'S LICENSURE FIELD.} \n\line 74.3 {\ul Subdivision 1.} {\ul Definitions.} {\ul (a) For purposes of this section, the following terms } \n\line 74.4{\ul have the meanings given them.} \n\line 74.5{\ul (b) "Master's degree program" means a graduate-level program at an accredited } \n\line 74.6{\ul university leading to a master of arts or science degree in a core content area directly } \n\line 74.7{\ul related to a qualified teacher's licensure field. The master's degree program may not } \n\line 74.8{\ul include pedagogy or a pedagogy component. To be eligible under this credit, a licensed } \n\line 74.9{\ul elementary school teacher must pursue and complete a master's degree program in a core } \n\line 74.10{\ul content area in which the teacher provides direct classroom instruction.} \n\line 74.11{\ul (c) "Qualified teacher" means a K-12 teacher who:} \n\line 74.12{\ul (1) holds a continuing license granted by the Minnesota Board of Teaching both } \n\line 74.13{\ul when the teacher begins the master's degree program and when the teacher completes the } \n\line 74.14{\ul master's degree program;} \n\line 74.15{\ul (2) began a master's degree program after June 30, 2016; and} \n\line 74.16{\ul (3) completes the master's degree program during the taxable year.} \n\line 74.17{\ul (d) "Core content area" means the academic subject of reading, English or language } \n\line 74.18{\ul arts, mathematics, science, foreign languages, civics and government, economics, arts, } \n\line 74.19{\ul history, or geography.} \n\line 74.20 {\ul Subd. 2.} {\ul Credit allowed.} {\ul (a) An individual who is a qualified teacher is allowed a } \n\line 74.21{\ul credit against the tax imposed under this chapter. The credit equals $2,500.} \n\line 74.22{\ul (b) For a nonresident or a part-year resident, the credit under this subdivision } \n\line 74.23{\ul must be allocated based on the percentage calculated under section 290.06, subdivision } \n\line 74.24{\ul 2c, paragraph (e).} \n\line 74.25{\ul (c) A qualified teacher may claim the credit in this section only one time for each } \n\line 74.26{\ul master's degree program completed in a core content area.} \n\line 74.27 {\ul Subd. 3.} {\ul Credit refundable.} {\ul (a) If the amount of the credit for which an individual } \n\line 74.28{\ul is eligible exceeds the individual's liability for tax under this chapter, the commissioner } \n\line 74.29{\ul shall refund the excess to the individual.} \n\line 74.30{\ul (b) The amount necessary to pay the refunds required by this section is appropriated } \n\line 74.31{\ul to the commissioner from the general fund.} \n\line 74.32{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 74.33{\ul December 31, 2015.} \n\line \n\line 74.34 Sec. 20. {\ul [290.0683] STUDENT LOAN CREDIT.} \n\line 75.1 {\ul Subdivision 1.} {\ul Definitions.} {\ul (a) For purposes of this section, the following terms } \n\line 75.2{\ul have the meanings given.} \n\line 75.3{\ul (b) "Adjusted gross income" means federal adjusted gross income as defined in } \n\line 75.4{\ul section 62 of the Internal Revenue Code. In the case of a married couple filing jointly, } \n\line 75.5{\ul "adjusted gross income" means the adjusted gross income of the taxpayer and spouse.} \n\line 75.6{\ul (c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue } \n\line 75.7{\ul Code, except that "earned income" includes combat pay excluded from federal taxable } \n\line 75.8{\ul income under section 112 of the Internal Revenue Code.} \n\line 75.9{\ul (d) "Education profession" means:} \n\line 75.10{\ul (1) a full-time job in public education; early childhood education, including licensed } \n\line 75.11{\ul or regulated child care, Head Start, and state-funded prekindergarten; school-based library } \n\line 75.12{\ul sciences; and other school-based services; or} \n\line 75.13{\ul (2) a full-time job as a faculty member at a tribal college or university as defined in } \n\line 75.14{\ul section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs } \n\line 75.15{\ul subject areas or areas of shortage, including nurse faculty, foreign language faculty, and } \n\line 75.16{\ul part-time faculty at community colleges, as determined by the United States Secretary } \n\line 75.17{\ul of Education.} \n\line 75.18{\ul (e) "Eligible individual" means an individual who has one or more qualified } \n\line 75.19{\ul education loans related to an undergraduate or graduate degree program of the individual } \n\line 75.20{\ul at a postsecondary educational institution.} \n\line 75.21{\ul (f) "Eligible loan payments" means the amount the eligible individual paid during } \n\line 75.22{\ul the taxable year to pay principal and interest on qualified education loans.} \n\line 75.23{\ul (g) "Postsecondary educational institution" means a postsecondary institution } \n\line 75.24{\ul eligible for state student aid under section 136A.103 or, if the institution is not located in } \n\line 75.25{\ul this state, a postsecondary institution participating in the federal Pell Grant program under } \n\line 75.26{\ul Title IV of the Higher Education Act of 1965, Public Law 89-329, as amended.} \n\line 75.27{\ul (h) "Public service job" means a full-time job in emergency management; } \n\line 75.28{\ul government, excluding time served as a member of Congress; military service; public } \n\line 75.29{\ul safety; law enforcement; public health, including nurses, nurse practitioners, nurses } \n\line 75.30{\ul in a clinical setting, and full-time professionals engaged in health care practitioner } \n\line 75.31{\ul occupations and health care support occupations, as such terms are defined by the Bureau } \n\line 75.32{\ul of Labor Statistics; social work in a public child or family service agency; public interest } \n\line 75.33{\ul law services including prosecution or public defense or legal advocacy on behalf of } \n\line 75.34{\ul low-income communities at a nonprofit organization; public service for individuals with } \n\line 75.35{\ul disabilities or public service for the elderly; public library sciences; or at an organization } \n\line 76.1{\ul that is described in section 501(c)(3) of the Internal Revenue Code and exempt from } \n\line 76.2{\ul taxation under section 501(a) of the Internal Revenue Code.} \n\line 76.3{\ul (i) "Qualified education loan" has the meaning given in section 221 of the Internal } \n\line 76.4{\ul Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.} \n\line 76.5 {\ul Subd. 2.} {\ul Credit allowed.} {\ul (a) An eligible individual is allowed a credit against the } \n\line 76.6{\ul tax due under this chapter. The credit equals a percentage of eligible loan payments in } \n\line 76.7{\ul excess of ten percent of adjusted gross income, up to $1,000, as follows:} \n\line 76.8{\ul (1) for eligible individuals, 50 percent;} \n\line 76.9{\ul (2) for eligible individuals in a public service job, 65 percent; and} \n\line 76.10{\ul (3) for eligible individuals in an education profession, 75 percent.} \n\line 76.11{\ul (b) The credit must not exceed the eligible individual's earned income for the taxable } \n\line 76.12{\ul year.} \n\line 76.13{\ul (c) In the case of a married couple filing a joint return, each spouse is eligible for } \n\line 76.14{\ul the credit in this section.} \n\line 76.15{\ul (d) For a nonresident or part-year resident, the credit must be allocated based on the } \n\line 76.16{\ul percentage calculated under section 290.06, subdivision 2c, paragraph (e).} \n\line 76.17{\ul (e) An eligible individual may receive the credit under this section without regard to } \n\line 76.18{\ul the individual's eligibility for the public service loan forgiveness program under United } \n\line 76.19{\ul States Code, title 20, section 1087e(m).} \n\line 76.20 {\ul Subd. 3.} {\ul Credit refundable.} {\ul If the amount of credit that an individual who is a } \n\line 76.21{\ul resident or part-year resident of Minnesota is eligible to receive under this section exceeds } \n\line 76.22{\ul the individual's tax liability under this chapter, the commissioner shall refund the excess } \n\line 76.23{\ul to the individual. For a nonresident taxpayer, the credit may not exceed the taxpayer's } \n\line 76.24{\ul liability for tax under this chapter.} \n\line 76.25 {\ul Subd. 4.} {\ul Appropriation.} {\ul An amount sufficient to pay the refunds required by this } \n\line 76.26{\ul section is appropriated to the commissioner from the general fund.} \n\line 76.27{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 76.28{\ul December 31, 2015.} \n\line \n\line 76.29 Sec. 21. {\ul [290.0684] SECTION 529 COLLEGE SAVINGS PLAN CREDIT.} \n\line 76.30 {\ul Subdivision 1.} {\ul Definitions.} {\ul For purposes of this section, the term "federal adjusted } \n\line 76.31{\ul gross income" has the meaning given under section 62(a) of the Internal Revenue Code, } \n\line 76.32{\ul and "nonqualified distribution" means any distribution that is includible in gross income } \n\line 76.33{\ul under section 529 of the Internal Revenue Code.} \n\line 76.34 {\ul Subd. 2.} {\ul Credit allowed.} {\ul (a) A credit of up to $500 is allowed to a resident } \n\line 76.35{\ul individual against the tax imposed by this chapter, subject to the limitations in paragraph } \n\line 77.1{\ul (b). The credit is not allowed to an individual who is eligible to be claimed as a dependent, } \n\line 77.2{\ul as defined in sections 151 and 152 of the Internal Revenue Code.} \n\line 77.3{\ul (b) The credit allowed must be calculated by applying the following rates to the } \n\line 77.4{\ul amount contributed to an account in a plan qualifying under section 529 of the Internal } \n\line 77.5{\ul Revenue Code, in a taxable year, reduced by any withdrawals from the account made } \n\line 77.6{\ul during the taxable year, and not including any amounts rolled over from other accounts in } \n\line 77.7{\ul plans qualifying under section 529 of the Internal Revenue Code:} \n\line 77.8{\ul (1) 50 percent for individual filers and married couples filing a joint return who have } \n\line 77.9{\ul federal adjusted gross income of not more than $80,000;} \n\line 77.10{\ul (2) 25 percent for married couples filing a joint return who have federal adjusted } \n\line 77.11{\ul gross income over $80,000, but not more than $100,000;} \n\line 77.12{\ul (3) ten percent for married couples filing a joint return who have federal adjusted } \n\line 77.13{\ul gross income over $100,000, but not more than $120,000; and} \n\line 77.14{\ul (4) five percent for married couples filing a joint return who have federal adjusted } \n\line 77.15{\ul gross income over $120,000, but not more than $160,000.} \n\line 77.16{\ul (c) The income thresholds in paragraph (b), clauses (1) to (4), used to calculate the } \n\line 77.17{\ul credit, must be adjusted for inflation. The commissioner shall adjust by the percentage } \n\line 77.18{\ul determined under the provisions of section 1(f) of the Internal Revenue Code, except that } \n\line 77.19{\ul in section 1(f)(3)(B) the word "2015" is substituted for the word "1992." For 2017, the } \n\line 77.20{\ul commissioner shall then determine the percent change from the 12 months ending on } \n\line 77.21{\ul August 31, 2015, to the 12 months ending on August 31, 2016, and in each subsequent } \n\line 77.22{\ul year, from the 12 months ending on August 31, 2015, to the 12 months ending on August } \n\line 77.23{\ul 31 of the year preceding the taxable year. The income thresholds as adjusted for inflation } \n\line 77.24{\ul must be rounded to the nearest $10 amount. If the amount ends in $5, the amount is } \n\line 77.25{\ul rounded up to the nearest $10 amount. The determination of the commissioner under this } \n\line 77.26{\ul subdivision is not a rule under the Administrative Procedure Act including section 14.386.} \n\line 77.27 {\ul Subd. 3.} {\ul Credit refundable.} {\ul If the amount of credit that an individual is eligible } \n\line 77.28{\ul to receive under this section exceeds the individual's tax liability under this chapter, the } \n\line 77.29{\ul commissioner shall refund the excess to the individual.} \n\line 77.30 {\ul Subd. 4.} {\ul Allocation.} {\ul For a part-year resident, the credit must be allocated based on } \n\line 77.31{\ul the percentage calculated under section 290.06, subdivision 2c, paragraph (e).} \n\line 77.32 {\ul Subd. 5.} {\ul Recapture of credit.} {\ul In the case of a nonqualified distribution, the } \n\line 77.33{\ul taxpayer is liable to the commissioner for the lesser of: ten percent of the amount of the } \n\line 77.34{\ul nonqualified distribution, or the sum of credits received under this section for all years.} \n\line 77.35 {\ul Subd. 6.} {\ul Appropriation.} {\ul An amount sufficient to pay the refunds required by this } \n\line 77.36{\ul section is appropriated to the commissioner from the general fund.} \n\line 78.1{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 78.2{\ul December 31, 2015.} \n\line \n\line 78.3 Sec. 22. {\ul [290.0803] SECTION 179 EXPENSING SUBTRACTION.} \n\line 78.4 {\ul Subdivision 1.} {\ul Current year allowance.} {\ul (a) In each of the five tax years } \n\line 78.5{\ul immediately following the tax year in which an addition is required under section 290.01, } \n\line 78.6{\ul subdivision 19a, clause (8), or 19c, clause (13), the current year allowance equals one-fifth } \n\line 78.7{\ul of the addition made by the taxpayer under section 290.01, subdivision 19a, clause (8), } \n\line 78.8{\ul or 19c, clause (13).} \n\line 78.9{\ul (b) In the case of a shareholder of a corporation that is an S corporation, the current } \n\line 78.10{\ul year allowance is reduced by the positive value of any net operating loss under section } \n\line 78.11{\ul 172 of the Internal Revenue Code generated for the tax year of the addition and, if the net } \n\line 78.12{\ul operating loss exceeds the addition for the tax year, the current year allowance is zero.} \n\line 78.13 {\ul Subd. 2.} {\ul Section 179 expensing carryover.} {\ul For purposes of this section, the current } \n\line 78.14{\ul year allowance determined under subdivision 1 is considered to be the last modification } \n\line 78.15{\ul allowed under section 290.01, subdivision 19b or 19d, in determining net income. If the } \n\line 78.16{\ul amount allowed under subdivision 1 exceeds net income computed without regard to the } \n\line 78.17{\ul current year allowance, then the excess is a section 179 expensing carryover to each of the } \n\line 78.18{\ul ten succeeding taxable years. The entire amount of the section 179 expensing carryover } \n\line 78.19{\ul is carried first to the earliest taxable year to which the section 179 expensing carryover } \n\line 78.20{\ul may be carried and then to each successive year to which the section 179 expensing } \n\line 78.21{\ul carryover may be carried.} \n\line 78.22 {\ul Subd. 3.} {\ul Section 179 expensing subtraction.} {\ul A taxpayer is allowed a section 179 } \n\line 78.23{\ul expensing subtraction from federal taxable income under section 290.01, subdivision 19b } \n\line 78.24{\ul or 19d. The subtraction equals the sum of:} \n\line 78.25{\ul (1) the current year allowance determined under subdivision 1; and} \n\line 78.26{\ul (2) any section 179 expensing carryover from prior taxable years determined under } \n\line 78.27{\ul subdivision 2.} \n\line 78.28{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 78.29{\ul December 31, 2015.} \n\line \n\line 78.30 Sec. 23. Minnesota Statutes 2014, section 290.091, subdivision 2, is amended to read: \n\line 78.31 Subd. 2. Definitions. For purposes of the tax imposed by this section, the following \n\line 78.32terms have the meanings given: \n\line 78.33 (a) "Alternative minimum taxable income" means the sum of the following for \n\line 78.34the taxable year: \n\line 79.1 (1) the taxpayer's federal alternative minimum taxable income as defined in section \n\line 79.255(b)(2) of the Internal Revenue Code; \n\line 79.3 (2) the taxpayer's itemized deductions allowed in computing federal alternative \n\line 79.4minimum taxable income, but excluding: \n\line 79.5 (i) the charitable contribution deduction under section 170 of the Internal Revenue \n\line 79.6Code; \n\line 79.7 (ii) the medical expense deduction; \n\line 79.8 (iii) the casualty, theft, and disaster loss deduction; and \n\line 79.9 (iv) the impairment-related work expenses of a disabled person; \n\line 79.10 (3) for depletion allowances computed under section 613A(c) of the Internal \n\line 79.11Revenue Code, with respect to each property (as defined in section 614 of the Internal \n\line 79.12Revenue Code), to the extent not included in federal alternative minimum taxable income, \n\line 79.13the excess of the deduction for depletion allowable under section 611 of the Internal \n\line 79.14Revenue Code for the taxable year over the adjusted basis of the property at the end of the \n\line 79.15taxable year (determined without regard to the depletion deduction for the taxable year); \n\line 79.16 (4) to the extent not included in federal alternative minimum taxable income, the \n\line 79.17amount of the tax preference for intangible drilling cost under section 57(a)(2) of the \n\line 79.18Internal Revenue Code determined without regard to subparagraph (E); \n\line 79.19 (5) to the extent not included in federal alternative minimum taxable income, the \n\line 79.20amount of interest income as provided by section \n\line 290.01, subdivision 19a, clause (1); and \n\line 79.21 (6) the amount of addition required by section \n\line 290.01, subdivision 19a, clauses (7) \n\line 79.22to (9), and (11) to (14); \n\line 79.23 less the sum of the amounts determined under the following: \n\line 79.24 (1) interest income as defined in section \n\line 290.01, subdivision 19b, clause (1); \n\line 79.25 (2) an overpayment of state income tax as provided by section \n\line 290.01, subdivision \n\line 79.2619b\n\line , clause (2), to the extent included in federal alternative minimum taxable income; \n\line 79.27 (3) the amount of investment interest paid or accrued within the taxable year on \n\line 79.28indebtedness to the extent that the amount does not exceed net investment income, as \n\line 79.29defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include \n\line 79.30amounts deducted in computing federal adjusted gross income; \n\line 79.31 (4) amounts subtracted from federal taxable income as provided by section \n\line 290.01, \n\line 79.32subdivision 19b\n\line , clauses (6), (8) to (14), (16), and {\strike (21)}{\ul (22)}; and \n\line 79.33(5) the amount of the net operating loss allowed under section \n\line 290.095, subdivision \n\line 79.3411\n\line , paragraph (c). \n\line 79.35 In the case of an estate or trust, alternative minimum taxable income must be \n\line 79.36computed as provided in section 59(c) of the Internal Revenue Code. \n\line 80.1 (b) "Investment interest" means investment interest as defined in section 163(d)(3) \n\line 80.2of the Internal Revenue Code. \n\line 80.3 (c) "Net minimum tax" means the minimum tax imposed by this section. \n\line 80.4 (d) "Regular tax" means the tax that would be imposed under this chapter (without \n\line 80.5regard to this section and section 290.032), reduced by the sum of the nonrefundable \n\line 80.6credits allowed under this chapter. \n\line 80.7 (e) "Tentative minimum tax" equals \n\line 6.75 percent of alternative minimum taxable \n\line 80.8income after subtracting the exemption amount determined under subdivision 3. \n\line 80.9{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 80.10{\ul December 31, 2015.} \n\line \n\line 80.11 Sec. 24. Minnesota Statutes 2015 Supplement, section 290A.03, subdivision 15, \n\line 80.12is amended to read: \n\line 80.13 Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal \n\line 80.14Revenue Code of 1986, as amended through December 31, {\strike 2014}{\ul 2015}. \n\line 80.15{\ul EFFECTIVE DATE.}{\ul This section is effective retroactively for property tax refunds } \n\line 80.16{\ul based on property taxes payable after December 31, 2015, and rent paid after December } \n\line 80.17{\ul 31, 2014.} \n\line \n\line 80.18 Sec. 25. Minnesota Statutes 2015 Supplement, section 291.005, subdivision 1, is \n\line 80.19amended to read: \n\line 80.20 Subdivision 1. Scope. Unless the context otherwise clearly requires, the following \n\line 80.21terms used in this chapter shall have the following meanings: \n\line 80.22 (1) "Commissioner" means the commissioner of revenue or any person to whom the \n\line 80.23commissioner has delegated functions under this chapter. \n\line 80.24 (2) "Federal gross estate" means the gross estate of a decedent as required to be valued \n\line 80.25and otherwise determined for federal estate tax purposes under the Internal Revenue Code, \n\line 80.26increased by the value of any property in which the decedent had a qualifying income \n\line 80.27interest for life and for which an election was made under section \n\line 291.03, subdivision 1d, \n\line 80.28for Minnesota estate tax purposes, but was not made for federal estate tax purposes. \n\line 80.29 (3) "Internal Revenue Code" means the United States Internal Revenue Code of \n\line 80.301986, as amended through December 31, {\strike 2014}{\ul 2015}. \n\line 80.31 (4) "Minnesota gross estate" means the federal gross estate of a decedent after \n\line 80.32(a) excluding therefrom any property included in the estate which has its situs outside \n\line 80.33Minnesota, and (b) including any property omitted from the federal gross estate which \n\line 81.1is includable in the estate, has its situs in Minnesota, and was not disclosed to federal \n\line 81.2taxing authorities. \n\line 81.3 (5) "Nonresident decedent" means an individual whose domicile at the time of \n\line 81.4death was not in Minnesota. \n\line 81.5 (6) "Personal representative" means the executor, administrator or other person \n\line 81.6appointed by the court to administer and dispose of the property of the decedent. If there \n\line 81.7is no executor, administrator or other person appointed, qualified, and acting within this \n\line 81.8state, then any person in actual or constructive possession of any property having a situs in \n\line 81.9this state which is included in the federal gross estate of the decedent shall be deemed \n\line 81.10to be a personal representative to the extent of the property and the Minnesota estate tax \n\line 81.11due with respect to the property. \n\line 81.12 (7) "Resident decedent" means an individual whose domicile at the time of death \n\line 81.13was in Minnesota.{\ul The provisions of section 290.01, subdivision 7, paragraphs (c) and } \n\line 81.14{\ul (d), apply to determinations of domicile under this chapter.} \n\line 81.15 (8) "Situs of property" means, with respect to: \n\line 81.16 (i) real property, the state or country in which it is located; \n\line 81.17 (ii) tangible personal property, the state or country in which it was normally kept \n\line 81.18or located at the time of the decedent's death or for a gift of tangible personal property \n\line 81.19within three years of death, the state or country in which it was normally kept or located \n\line 81.20when the gift was executed; \n\line 81.21 (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue \n\line 81.22Code, owned by a nonresident decedent and that is normally kept or located in this state \n\line 81.23because it is on loan to an organization, qualifying as exempt from taxation under section \n\line 81.24501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is \n\line 81.25deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and \n\line 81.26 (iv) intangible personal property, the state or country in which the decedent was \n\line 81.27domiciled at death or for a gift of intangible personal property within three years of death, \n\line 81.28the state or country in which the decedent was domiciled when the gift was executed. \n\line 81.29 For a nonresident decedent with an ownership interest in a pass-through entity with \n\line 81.30assets that include real or tangible personal property, situs of the real or tangible personal \n\line 81.31property, including qualified works of art, is determined as if the pass-through entity does \n\line 81.32not exist and the real or tangible personal property is personally owned by the decedent. \n\line 81.33If the pass-through entity is owned by a person or persons in addition to the decedent, \n\line 81.34ownership of the property is attributed to the decedent in proportion to the decedent's \n\line 81.35capital ownership share of the pass-through entity. \n\line 81.36(9) "Pass-through entity" includes the following: \n\line 82.1(i) an entity electing S corporation status under section 1362 of the Internal Revenue \n\line 82.2Code; \n\line 82.3(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code; \n\line 82.4(iii) a single-member limited liability company or similar entity, regardless of \n\line 82.5whether it is taxed as an association or is disregarded for federal income tax purposes \n\line 82.6under Code of Federal Regulations, title 26, section 301.7701-3; or \n\line 82.7(iv) a trust to the extent the property is includible in the decedent's federal gross \n\line 82.8estate; but excludes \n\line 82.9 (v) an entity whose ownership interest securities are traded on an exchange regulated \n\line 82.10by the Securities and Exchange Commission as a national securities exchange under \n\line 82.11section 6 of the Securities Exchange Act, United States Code, title 15, section 78f. \n\line 82.12{\ul EFFECTIVE DATE.}{\ul This section is effective retroactively for estates of decedents } \n\line 82.13{\ul dying after December 31, 2015.} \n\line \n\line 82.14 Sec. 26. Minnesota Statutes 2014, section 291.03, is amended by adding a subdivision \n\line 82.15to read: \n\line 82.16 {\ul Subd. 12.} {\ul Certain dispositions to government entities.} {\ul Notwithstanding any } \n\line 82.17{\ul provision of this section, no taxpayer is disqualified for the subtraction provided under } \n\line 82.18{\ul section 291.016, subdivision 3, nor is any taxpayer liable for the recapture tax provided in } \n\line 82.19{\ul subdivision 11, solely because the state, any local government unit, or any other entity } \n\line 82.20{\ul that has the power of eminent domain acquires title or possession of the land for a public } \n\line 82.21{\ul purpose within the three-year holding period.} \n\line 82.22{\ul EFFECTIVE DATE.}{\ul This section is effective retroactively for estates of decedents } \n\line 82.23{\ul dying after June 30, 2011.} \n\line \n\line 82.24 Sec. 27. {\ul AMENDED RETURNS.} \n\line 82.25 {\ul Subdivision 1.} {\ul Certain IRA rollovers.} {\ul An individual who excludes an amount } \n\line 82.26{\ul from net income in a prior taxable year through rollover of an airline payment amount to } \n\line 82.27{\ul a traditional IRA, as authorized under Public Law 114-113, division Q, title III, section } \n\line 82.28{\ul 307, may file an amended individual income tax return and claim for refund of state taxes } \n\line 82.29{\ul as provided under Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by } \n\line 82.30{\ul September 1, 2016.} \n\line 82.31 {\ul Subd. 2.} {\ul Exclusion for certain incarcerated individuals.} {\ul An individual who } \n\line 82.32{\ul excludes from net income in a prior taxable year civil damages, restitution, or other } \n\line 83.1{\ul monetary award received as compensation for a wrongful incarceration, as authorized } \n\line 83.2{\ul under Public Law 114-113, division Q, title III, section 304, may file an amended } \n\line 83.3{\ul individual income tax return and claim for refund of state taxes as provided under } \n\line 83.4{\ul Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September 1, 2016.} \n\line 83.5{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 83.6 Sec. 28. {\ul ESTATE TAX REVIEW; TEMPORARY LIMIT ON ASSESSMENTS.} \n\line 83.7{\ul (a) The commissioner of revenue shall:} \n\line 83.8{\ul (1) review the estate tax's definition of qualified farm property and its linkage to the } \n\line 83.9{\ul property tax classification of the property during the three-year period following the } \n\line 83.10{\ul death of the decedent; and} \n\line 83.11{\ul (2) by February 1, 2017, report to the committees of the house of representatives } \n\line 83.12{\ul and the senate with jurisdiction over taxes on alternative methods of ensuring that the } \n\line 83.13{\ul use of the property by qualified heirs during the three-year period after the decedent's } \n\line 83.14{\ul death is consistent with the purpose of limiting the subtraction to properties where its use } \n\line 83.15{\ul continues that of the decedent without any material change in its use by the qualified heirs } \n\line 83.16{\ul and its ownership is consistent with maintaining family ownership of the farm.} \n\line 83.17{\ul (b) Prior to June 1, 2017, the commissioner of revenue shall not assess recapture tax } \n\line 83.18{\ul under Minnesota Statutes, section 291.03, subdivision 11, for a change in the property tax } \n\line 83.19{\ul classification of agricultural homestead property if the following conditions are satisfied:} \n\line 83.20{\ul (1) the property is held in a trust of which the surviving spouse is a beneficiary; and} \n\line 83.21{\ul (2) the property receives partial homestead classification because a beneficiary of } \n\line 83.22{\ul the trust is the owner of another agricultural homestead.} \n\line 83.23{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 83.24 Sec. 29. {\ul INDIVIDUAL INCOME TAX COLLECTION ACTION PROHIBITED.} \n\line 83.25{\ul Notwithstanding any law to the contrary, the commissioner of revenue shall not } \n\line 83.26{\ul increase the amount due or decrease the refund for an individual income tax return for } \n\line 83.27{\ul the taxable year beginning after December 31, 2014, and before January 1, 2016, to the } \n\line 83.28{\ul extent the amount due was understated or the refund was overstated because the taxpayer } \n\line 83.29{\ul calculated the tax or refund based on the Internal Revenue Code, as amended through } \n\line 83.30{\ul December 31, 2014, rather than based on the Internal Revenue Code, as amended through } \n\line 83.31{\ul December 31, 2015, as provided in this act. } \n\line 83.32{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 84.1 Sec. 30. {\ul REPEALER.} \n\line 84.2{\ul Minnesota Statutes 2014, section 290.067, subdivisions 2 and 2a,}{\ul are repealed.} \n\line 84.3{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 84.4{\ul December 31, 2015.} \n\line \n\line
84.5ARTICLE 4 \n\line \n\line
\n\line
84.6SALES AND USE TAXES \n\line \n\line
\n\line 84.7 Section 1. Minnesota Statutes 2014, section 297A.61, subdivision 3, is amended to read: \n\line 84.8 Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited \n\line 84.9to, each of the transactions listed in this subdivision. In applying the provisions of this \n\line 84.10chapter, the terms "tangible personal property" and "retail sale" include the taxable \n\line 84.11services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision \n\line 84.12of these taxable services, unless specifically provided otherwise. Services performed by \n\line 84.13an employee for an employer are not taxable. Services performed by a partnership or \n\line 84.14association for another partnership or association are not taxable if one of the entities owns \n\line 84.15or controls more than 80 percent of the voting power of the equity interest in the other \n\line 84.16entity. Services performed between members of an affiliated group of corporations are not \n\line 84.17taxable. For purposes of the preceding sentence, "affiliated group of corporations" means \n\line 84.18those entities that would be classified as members of an affiliated group as defined under \n\line 84.19United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b). \n\line 84.20 (b) Sale and purchase include: \n\line 84.21 (1) any transfer of title or possession, or both, of tangible personal property, whether \n\line 84.22absolutely or conditionally, for a consideration in money or by exchange or barter; and \n\line 84.23 (2) the leasing of or the granting of a license to use or consume, for a consideration \n\line 84.24in money or by exchange or barter, tangible personal property, other than a manufactured \n\line 84.25home used for residential purposes for a continuous period of 30 days or more. \n\line 84.26 (c) Sale and purchase include the production, fabrication, printing, or processing of \n\line 84.27tangible personal property for a consideration for consumers who furnish either directly or \n\line 84.28indirectly the materials used in the production, fabrication, printing, or processing. \n\line 84.29 (d) Sale and purchase include the preparing for a consideration of food. \n\line 84.30Notwithstanding section \n\line 297A.67, subdivision 2, taxable food includes, but is not limited \n\line 84.31to, the following: \n\line 84.32 (1) prepared food sold by the retailer; \n\line 84.33 (2) soft drinks; \n\line 84.34 (3) candy; \n\line 84.35 (4) dietary supplements; and \n\line 85.1 (5) all food sold through vending machines. \n\line 85.2 (e) A sale and a purchase includes the furnishing for a consideration of electricity, \n\line 85.3gas, water, or steam for use or consumption within this state. \n\line 85.4 (f) A sale and a purchase includes the transfer for a consideration of prewritten \n\line 85.5computer software whether delivered electronically, by load and leave, or otherwise. \n\line 85.6 (g) A sale and a purchase includes the furnishing for a consideration of the following \n\line 85.7services: \n\line 85.8 (1) the privilege of admission to places of amusement, recreational areas, or athletic \n\line 85.9events, and the making available of amusement devices, tanning facilities, reducing \n\line 85.10salons, steam baths, health clubs, and spas or athletic facilities; \n\line 85.11 (2) lodging and related services by a hotel, rooming house, resort, campground, \n\line 85.12motel, or trailer camp, including furnishing the guest of the facility with access to \n\line 85.13telecommunication services, and the granting of any similar license to use real property in \n\line 85.14a specific facility, other than the renting or leasing of it for a continuous period of 30 days \n\line 85.15or more under an enforceable written agreement that may not be terminated without prior \n\line 85.16notice and including accommodations intermediary services provided in connection with \n\line 85.17other services provided under this clause; \n\line 85.18 (3) nonresidential parking services, whether on a contractual, hourly, or other \n\line 85.19periodic basis, except for parking at a meter; \n\line 85.20 (4) the granting of membership in a club, association, or other organization if: \n\line 85.21 (i) the club, association, or other organization makes available for the use of its \n\line 85.22members sports and athletic facilities, without regard to whether a separate charge is \n\line 85.23assessed for use of the facilities; and \n\line 85.24 (ii) use of the sports and athletic facility is not made available to the general public \n\line 85.25on the same basis as it is made available to members. \n\line 85.26Granting of membership means both onetime initiation fees and periodic membership \n\line 85.27dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and \n\line 85.28squash courts; basketball and volleyball facilities; running tracks; exercise equipment; \n\line 85.29swimming pools; and other similar athletic or sports facilities; \n\line 85.30 (5) delivery of aggregate materials by a third party, excluding delivery of aggregate \n\line 85.31material used in road construction; and delivery of concrete block by a third party if the \n\line 85.32delivery would be subject to the sales tax if provided by the seller of the concrete block. \n\line 85.33For purposes of this clause, "road construction" means construction of: \n\line 85.34 (i) public roads; \n\line 85.35 (ii) cartways; and \n\line 86.1 (iii) private roads in townships located outside of the seven-county metropolitan area \n\line 86.2up to the point of the emergency response location sign; and \n\line 86.3 (6) services as provided in this clause: \n\line 86.4 (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, \n\line 86.5and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, \n\line 86.6drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not \n\line 86.7include services provided by coin operated facilities operated by the customer; \n\line 86.8 (ii) motor vehicle washing, waxing, and cleaning services, including services \n\line 86.9provided by coin operated facilities operated by the customer, and rustproofing, \n\line 86.10undercoating, and towing of motor vehicles; \n\line 86.11 (iii) building and residential cleaning, maintenance, and disinfecting services and \n\line 86.12pest control and exterminating services; \n\line 86.13 (iv) detective, security, burglar, fire alarm, and armored car services; but not \n\line 86.14including services performed within the jurisdiction they serve by off-duty licensed peace \n\line 86.15officers as defined in section \n\line 626.84, subdivision 1, or services provided by a nonprofit \n\line 86.16organization or any organization at the direction of a county for monitoring and electronic \n\line 86.17surveillance of persons placed on in-home detention pursuant to court order or under the \n\line 86.18direction of the Minnesota Department of Corrections; \n\line 86.19 (v) pet grooming services; \n\line 86.20 (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting \n\line 86.21and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor \n\line 86.22plant care; tree, bush, shrub, and stump removal, except when performed as part of a land \n\line 86.23clearing contract as defined in section \n\line 297A.68, subdivision 40; and tree trimming for \n\line 86.24public utility lines. Services performed under a construction contract for the installation of \n\line 86.25shrubbery, plants, sod, trees, bushes, and similar items are not taxable; \n\line 86.26 (vii) massages, except when provided by a licensed health care facility or \n\line 86.27professional or upon written referral from a licensed health care facility or professional for \n\line 86.28treatment of illness, injury, or disease; and \n\line 86.29 (viii) the furnishing of lodging, board, and care services for animals in kennels and \n\line 86.30other similar arrangements, but excluding veterinary and horse boarding services. \n\line 86.31 (h) A sale and a purchase includes the furnishing for a consideration of tangible \n\line 86.32personal property or taxable services by the United States or any of its agencies or \n\line 86.33instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political \n\line 86.34subdivisions. \n\line 86.35 (i) A sale and a purchase includes the furnishing for a consideration of \n\line 86.36telecommunications services, ancillary services associated with telecommunication \n\line 87.1services, and pay television services. Telecommunication services include, but are \n\line 87.2not limited to, the following services, as defined in section \n\line 297A.669: air-to-ground \n\line 87.3radiotelephone service, mobile telecommunication service, postpaid calling service, \n\line 87.4prepaid calling service, prepaid wireless calling service, and private communication \n\line 87.5services. The services in this paragraph are taxed to the extent allowed under federal law. \n\line 87.6 (j) A sale and a purchase includes the furnishing for a consideration of installation if \n\line 87.7the installation charges would be subject to the sales tax if the installation were provided \n\line 87.8by the seller of the item being installed. \n\line 87.9 (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer \n\line 87.10to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) \n\line 87.11the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section \n\line \n\line 87.1259B.02, subdivision\n\line 11. \n\line 87.13 (l) A sale and a purchase includes furnishing for a consideration of specified digital \n\line 87.14products or other digital products or granting the right for a consideration to use specified \n\line 87.15digital products or other digital products on a temporary or permanent basis and regardless \n\line 87.16of whether the purchaser is required to make continued payments for such right. Wherever \n\line 87.17the term "tangible personal property" is used in this chapter, other than in subdivisions 10 \n\line 87.18and 38, the provisions also apply to specified digital products, or other digital products, \n\line 87.19unless specifically provided otherwise or the context indicates otherwise. \n\line 87.20{\ul (m) The sale of the privilege of admission under section 297A.61, subdivision 3, } \n\line 87.21{\ul paragraph (g), clause (1), to a place of amusement or athletic event includes all charges } \n\line 87.22{\ul included in the privilege of admission's sales price, without deduction for amenities that } \n\line 87.23{\ul may be provided, unless the amenities are separately stated and the purchaser of the } \n\line 87.24{\ul privilege of admission is entitled to add or decline the amenities, and the amenities are not } \n\line 87.25{\ul otherwise taxable.} \n\line 87.26{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 87.27 Sec. 2. Minnesota Statutes 2014, section 297A.66, subdivision 1, is amended to read: \n\line 87.28 Subdivision 1. Definitions. (a) To the extent allowed by the United States \n\line 87.29Constitution and the laws of the United States, "retailer maintaining a place of business in \n\line 87.30this state," or a similar term, means a retailer: \n\line 87.31(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, \n\line 87.32an office, place of distribution, sales{\ul , storage,} or sample room or place, warehouse, or \n\line 87.33other place of business{\ul , including the employment of a resident of this state who works } \n\line 87.34{\ul from a home office in this state}; or \n\line 88.1(2) having a representative, including, but not limited to, an affiliate, agent, \n\line 88.2salesperson, canvasser, {\strike or}{\ul marketplace provider,} solicitor{\ul , or other third party }operating in \n\line 88.3this state under the authority of the retailer or its subsidiary, for any purpose, including the \n\line 88.4repairing, selling, delivering, installing, {\ul facilitating sales, processing sales, }or soliciting of \n\line 88.5orders for the retailer's goods or services, or the leasing of tangible personal property located \n\line 88.6in this state, whether the place of business or agent, representative, affiliate, salesperson, \n\line 88.7canvasser, or solicitor is located in the state permanently or temporarily, or whether or not \n\line 88.8the retailer, subsidiary, or affiliate is authorized to do business in this state.{\ul A retailer is } \n\line 88.9{\ul represented by a marketplace provider in this state if the retailer makes sales in this state } \n\line 88.10{\ul facilitated by a marketplace provider that maintains a place of business in this state.} \n\line 88.11(b) "Destination of a sale" means the location to which the retailer makes delivery of \n\line 88.12the property sold, or causes the property to be delivered, to the purchaser of the property, \n\line 88.13or to the agent or designee of the purchaser. The delivery may be made by any means, \n\line 88.14including the United States Postal Service or a for-hire carrier. \n\line 88.15{\ul (c) "Marketplace provider" means any person who facilitates a retail sale by a } \n\line 88.16{\ul retailer by:} \n\line 88.17{\ul (1) listing or advertising for sale by the retailer in any forum, tangible personal } \n\line 88.18{\ul property, services, or digital goods that are subject to tax under this chapter; and} \n\line 88.19{\ul (2) either directly or indirectly through agreements or arrangements with third } \n\line 88.20{\ul parties collecting payment from the customer and transmitting that payment to the } \n\line 88.21{\ul retailer regardless of whether the marketplace provider receives compensation or other } \n\line 88.22{\ul consideration in exchange for its services.} \n\line 88.23{\ul (d) "Total taxable retail sales" means the gross receipts from the sale of all tangible } \n\line 88.24{\ul goods, services, and digital goods subject to sales and use tax under this chapter.} \n\line \n\line 88.25 Sec. 3. Minnesota Statutes 2014, section 297A.66, subdivision 2, is amended to read: \n\line 88.26 Subd. 2. Retailer maintaining place of business in this state. {\ul (a) Except as } \n\line 88.27{\ul provided in paragraph (b), }a retailer maintaining a place of business in this state who \n\line 88.28makes retail sales in Minnesota or to a destination in Minnesota shall collect sales and use \n\line 88.29taxes and remit them to the commissioner under section \n\line 297A.77. \n\line 88.30{\ul (b) A retailer with total taxable retail sales to customers in this state of less than } \n\line 88.31{\ul $10,000 in the 12-month period ending on the last day of the most recently completed } \n\line 88.32{\ul calendar quarter is not required to collect and remit sales tax if it is determined to be a } \n\line 88.33{\ul retailer maintaining a place of business in the state solely because it made sales through } \n\line 88.34{\ul one or more marketplace providers. The provisions of this paragraph do not apply to a } \n\line 88.35{\ul retailer that is or was registered to collect sales and use tax in this state.} \n\line \n\line 89.1 Sec. 4. Minnesota Statutes 2014, section 297A.66, subdivision 4, is amended to read: \n\line 89.2 Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes \n\line 89.3of subdivision 1, paragraph (a), if{\ul the entity}: \n\line 89.4(1) {\strike the entity} uses its facilities or employees in this state to advertise, promote, or \n\line 89.5facilitate the establishment or maintenance of a market for sales of items by the retailer \n\line 89.6to purchasers in this state or for the provision of services to the retailer's purchasers in \n\line 89.7this state, such as accepting returns of purchases for the retailer, providing assistance in \n\line 89.8resolving customer complaints of the retailer, or providing other services; {\strike and} \n\line 89.9(2) {\strike the retailer and the entity are related parties.}{\ul has the same or a similar business } \n\line 89.10{\ul name to the retailer and sells, from a location or locations in this state, tangible personal } \n\line 89.11{\ul property, digital goods, or services, taxable under this chapter, that are similar to that } \n\line 89.12{\ul sold by the retailer;} \n\line 89.13{\ul (3) maintains an office, distribution facility, salesroom, warehouse, storage place, or } \n\line 89.14{\ul other similar place of business in this state to facilitate the delivery of tangible personal } \n\line 89.15{\ul property, digital goods, or services sold by the retailer to its customers in this state;} \n\line 89.16{\ul (4) maintains a place of business in this state and uses trademarks, service marks, } \n\line 89.17{\ul or trade names in this state that are the same or substantially similar to those used by } \n\line 89.18{\ul the retailer, and that use is done with the express or implied consent of the holder of } \n\line 89.19{\ul the marks or names;} \n\line 89.20{\ul (5) delivers, installs, or assembles tangible personal property in this state, or } \n\line 89.21{\ul performs maintenance or repair services on tangible personal property in this state, for } \n\line 89.22{\ul tangible personal property sold by the retailer;} \n\line 89.23{\ul (6) facilitates the delivery of tangible personal property to customers of the retailer } \n\line 89.24{\ul by allowing the customers to pick up tangible personal property sold by the retailer at a } \n\line 89.25{\ul place of business the entity maintains in this state; or} \n\line 89.26{\ul (7) shares management, business systems, business practices, or employees with the } \n\line 89.27{\ul retailer, or engages in intercompany transactions with the retailer related to the activities } \n\line 89.28{\ul that establish or maintain the market in this state of the retailer.} \n\line 89.29(b) Two entities are related parties under this section if one of the entities meets at \n\line 89.30least one of the following tests with respect to the other entity: \n\line 89.31(1) one or both entities is a corporation, and one entity and any party related to that \n\line 89.32entity in a manner that would require an attribution of stock from the corporation to the \n\line 89.33party or from the party to the corporation under the attribution rules of section 318 of the \n\line 89.34Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 \n\line 89.35percent of the value of the corporation's outstanding stock; \n\line 90.1(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary, \n\line 90.2and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly, \n\line 90.3beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital, \n\line 90.4stock, or value of the other entity or both entities; {\strike or} \n\line 90.5(3) an individual stockholder and the members of the stockholder's family (as \n\line 90.6defined in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, \n\line 90.7or constructively, in the aggregate, at least 50 percent of the value of both entities' \n\line 90.8outstanding stock{\strike .}{\ul ;} \n\line 90.9{\ul (4) the entities are related within the meaning of subsections (b) and (c) of section } \n\line 90.10{\ul 267 or 707(b)(1) of the Internal Revenue Code; or} \n\line 90.11{\ul (5) the entities have one or more ownership relationships and the relationships were } \n\line 90.12{\ul designed with a principal purpose of avoiding the application of this section.} \n\line 90.13(c) An entity is an affiliate under the provisions of this subdivision if the requirements \n\line 90.14of paragraphs (a) and (b) are met during any part of the 12-month period ending on the \n\line 90.15first day of the month before the month in which the sale was made. \n\line \n\line 90.16 Sec. 5. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision \n\line 90.17to read: \n\line 90.18 {\ul Subd. 4b.} {\ul Collection and remittance requirements for marketplace providers } \n\line 90.19{\ul and marketplace sellers.} {\ul (a) A marketplace provider shall collect sales and use taxes } \n\line 90.20{\ul and remit them to the commissioner under section 297A.77 for all facilitated sales for a } \n\line 90.21{\ul retailer, and is subject to audit on the retail sales it facilitates unless the retailer either:} \n\line 90.22{\ul (1) provides a copy of the seller's registration to collect sales and use tax in this state } \n\line 90.23{\ul to the marketplace provider before the marketplace provider facilitates a sale; or} \n\line 90.24{\ul (2) upon inquiry by the marketplace provider or its agent, the commissioner } \n\line 90.25{\ul discloses that the retailer is registered to collect sales and use taxes in this state.} \n\line 90.26{\ul (b) Nothing in this subdivision shall be construed to interfere with the ability of a } \n\line 90.27{\ul marketplace provider and a retailer to enter into an agreement regarding fulfillment of } \n\line 90.28{\ul the requirements of this chapter.} \n\line 90.29{\ul (c) A marketplace provider is not liable under this subdivision for failure to file and } \n\line 90.30{\ul collect and remit sales and use taxes if the marketplace provider demonstrates that the } \n\line 90.31{\ul error was due to incorrect or insufficient information given to the marketplace provider by } \n\line 90.32{\ul the retailer. This paragraph does not apply if the marketplace provider and the marketplace } \n\line 90.33{\ul seller are related as defined in subdivision 4, paragraph (b).} \n\line \n\line 90.34 Sec. 6. Minnesota Statutes 2014, section 297A.67, subdivision 7a, is amended to read: \n\line 91.1 Subd. 7a. Accessories and supplies. Accessories and supplies required for the \n\line 91.2effective use of durable medical equipment for home use only or purchased in a transaction \n\line 91.3covered by Medicare {\strike or}{\ul ,} Medicaid,{\ul or other health insurance plan,} that are not already \n\line 91.4exempt under subdivision 7, are exempt. Accessories and supplies for the effective use \n\line 91.5of a prosthetic device, that are not already exempt under subdivision 7, are exempt. \n\line 91.6For purposes of this subdivision "durable medical equipment," "prosthetic device," \n\line 91.7"Medicare," and "Medicaid" have the definitions given in subdivision 7{\strike .}{\ul , and "other health } \n\line 91.8{\ul insurance plan" means a health plan defined in section 62A.011, subdivision 3, or 62V.02, } \n\line 91.9{\ul subdivision 4, or a qualified health plan defined in section 62A.011, subdivision 7.} \n\line 91.10{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 91.11{\ul June 30, 2016.} \n\line \n\line 91.12 Sec. 7. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision \n\line 91.13to read: \n\line 91.14 {\ul Subd. 34.} {\ul Suite licenses.} {\ul The sale of the privilege of admission under section } \n\line 91.15{\ul 297A.61, subdivision 3, paragraph (g), clause (1), to a place of amusement or athletic } \n\line 91.16{\ul event does not include consideration paid for a license to use a private suite, private } \n\line 91.17{\ul skybox, or private box seat provided that: (1) the lessee may use the private suite, private } \n\line 91.18{\ul skybox, or private box seat by mutual arrangement with the lessor on days when there is } \n\line 91.19{\ul no amusement or athletic event; and (2) the sales price for the privilege of admission is } \n\line 91.20{\ul separately stated and is equal to or greater than the highest priced general admission ticket } \n\line 91.21{\ul for the closest seat not in the private suite, private skybox, or private box seat.} \n\line 91.22{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 91.23{\ul June 30, 2016.} \n\line \n\line 91.24 Sec. 8. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision \n\line 91.25to read: \n\line 91.26 {\ul Subd. 35.} {\ul Stadium builder's licenses.} {\ul The sale of the privilege of admission under } \n\line 91.27{\ul section 297A.61, subdivision 3, paragraph (g), clause (1), does not include consideration } \n\line 91.28{\ul paid for a stadium builder's license authorized under section 473J.15, subdivision 14.} \n\line 91.29{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 91.30 Sec. 9. Minnesota Statutes 2014, section 297A.68, subdivision 9, is amended to read: \n\line 91.31 Subd. 9. Super Bowl admissions{\ul and related events}. {\ul (a) }The granting of the \n\line 91.32privilege of admission to a world championship football game sponsored by the National \n\line 92.1Football League {\strike is}{\ul and to related events sponsored by the National Football League or its } \n\line 92.2{\ul affiliates, or the Minnesota Super Bowl Host Committee, are} exempt. \n\line 92.3{\ul (b) The sale of nonresidential parking by the National Football League for } \n\line 92.4{\ul attendance at a world championship football game sponsored by the National Football } \n\line 92.5{\ul League and for related events sponsored by the National Football League or its affiliates, } \n\line 92.6{\ul or the Minnesota Super Bowl Host Committee, is exempt.} \n\line 92.7{\ul (c) For the purposes of this subdivision:} \n\line 92.8{\ul (1) "related events sponsored by the National Football League or its affiliates" } \n\line 92.9{\ul includes but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, } \n\line 92.10{\ul NFL On Location, and NFL House; and} \n\line 92.11{\ul (2) "affiliates" does not include National Football League teams.} \n\line 92.12{\ul EFFECTIVE DATE.}{\ul The amendments to this section are effective for sales and } \n\line 92.13{\ul purchases made after June 30, 2016, and before March 1, 2018.} \n\line \n\line 92.14 Sec. 10. Minnesota Statutes 2014, section 297A.70, subdivision 14, is amended to read: \n\line 92.15 Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of \n\line 92.16tangible personal property or services at, and admission charges for fund-raising events \n\line 92.17sponsored by, a nonprofit organization are exempt if: \n\line 92.18(1) all gross receipts are recorded as such, in accordance with generally accepted \n\line 92.19accounting practices, on the books of the nonprofit organization; and \n\line 92.20(2) the entire proceeds, less the necessary expenses for the event, will be used solely \n\line 92.21and exclusively for charitable, religious, or educational purposes. Exempt sales include \n\line 92.22the sale of prepared food, candy, and soft drinks at the fund-raising event. \n\line 92.23(b) This exemption is limited in the following manner: \n\line 92.24(1) it does not apply to admission charges for events involving bingo or other \n\line 92.25gambling activities or to charges for use of amusement devices involving bingo or other \n\line 92.26gambling activities; \n\line 92.27(2) all gross receipts are taxable if the profits are not used solely and exclusively for \n\line 92.28charitable, religious, or educational purposes; \n\line 92.29(3) it does not apply unless the organization keeps a separate accounting record, \n\line 92.30including receipts and disbursements from each fund-raising event that documents all \n\line 92.31deductions from gross receipts with receipts and other records; \n\line 92.32(4) it does not apply to any sale made by or in the name of a nonprofit corporation as \n\line 92.33the active or passive agent of a person that is not a nonprofit corporation; \n\line 92.34(5) all gross receipts are taxable if fund-raising events exceed 24 days per year; \n\line 93.1(6) it does not apply to fund-raising events conducted on premises leased for more \n\line 93.2than {\strike five}{\ul ten} days but less than 30 days; and \n\line 93.3(7) it does not apply if the risk of the event is not borne by the nonprofit organization \n\line 93.4and the benefit to the nonprofit organization is less than the total amount of the state and \n\line 93.5local tax revenues forgone by this exemption. \n\line 93.6(c) For purposes of this subdivision, a "nonprofit organization" means any unit of \n\line 93.7government, corporation, society, association, foundation, or institution organized and \n\line 93.8operated for charitable, religious, educational, civic, fraternal, and senior citizens' or \n\line 93.9veterans' purposes, no part of the net earnings of which inures to the benefit of a private \n\line 93.10individual. \n\line 93.11(d) For purposes of this subdivision, "fund-raising events" means activities of \n\line 93.12limited duration, not regularly carried out in the normal course of business, that attract \n\line 93.13patrons for community, social, and entertainment purposes, such as auctions, bake sales, \n\line 93.14ice cream socials, block parties, carnivals, competitions, concerts, concession stands, \n\line 93.15craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion \n\line 93.16shows, festivals, galas, special event workshops, sporting activities such as marathons and \n\line 93.17tournaments, and similar events. Fund-raising events do not include the operation of a \n\line 93.18regular place of business in which services are provided or sales are made during regular \n\line 93.19hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, \n\line 93.20regularly scheduled classes, or other activities carried out in the normal course of business. \n\line 93.21{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 93.22{\ul June 30, 2016.} \n\line \n\line 93.23 Sec. 11. Minnesota Statutes 2014, section 297A.71, is amended by adding a \n\line 93.24subdivision to read: \n\line 93.25 {\ul Subd. 49.} {\ul Siding production facility materials.} {\ul Building materials and supplies } \n\line 93.26{\ul for constructing a siding production facility that can produce at least 400,000,000 square } \n\line 93.27{\ul feet of siding per year are exempt. The tax must be imposed and collected as if the rate } \n\line 93.28{\ul under section 297A.62, subdivision 1, applied, and then refunded in the manner provided } \n\line 93.29{\ul in section 297A.75.} \n\line 93.30{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 93.31{\ul June 30, 2016.} \n\line \n\line 93.32 Sec. 12. Minnesota Statutes 2014, section 297A.71, is amended by adding a \n\line 93.33subdivision to read: \n\line 94.1 {\ul Subd. 50.} {\ul Properties destroyed by fire.} {\ul Building materials and supplies used in, } \n\line 94.2{\ul and equipment incorporated into, the construction or replacement of real property that is } \n\line 94.3{\ul located in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be } \n\line 94.4{\ul imposed and collected as if the rate under section 297A.62, subdivision 1, applied and } \n\line 94.5{\ul then refunded in the manner provided in section 297A.75. } \n\line 94.6{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 94.7{\ul June 30, 2016, and before July 1, 2018.} \n\line \n\line 94.8 Sec. 13. Minnesota Statutes 2014, section 297A.71, is amended by adding a \n\line 94.9subdivision to read: \n\line 94.10 {\ul Subd. 51.} {\ul Former Duluth Central High School.} {\ul Materials and supplies used } \n\line 94.11{\ul in and equipment incorporated into a private redevelopment project on the site of the } \n\line 94.12{\ul former Duluth Central High School are exempt, provided the resulting development is } \n\line 94.13{\ul subject to property taxes. The tax must be imposed and collected as if the rate under } \n\line 94.14{\ul section 297A.62, subdivision 1, applied and then refunded in the manner provided in } \n\line 94.15{\ul section 297A.75. The commissioner must not pay more than $5,000,000 in refunds for } \n\line 94.16{\ul purchases exempt under this section. Refunds must be processed and issued in the order } \n\line 94.17{\ul that complete and accurate applications are received by the commissioner.} \n\line 94.18{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 94.19{\ul June 30, 2016, and before January 1, 2018.} \n\line \n\line 94.20 Sec. 14. Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read: \n\line 94.21 Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the \n\line 94.22following exempt items must be imposed and collected as if the sale were taxable and the \n\line 94.23rate under section \n\line 297A.62, subdivision 1, applied. The exempt items include: \n\line 94.24 (1) building materials for an agricultural processing facility exempt under section \n\line \n\line 94.25297A.71, subdivision 13\n\line ; \n\line 94.26 (2) building materials for mineral production facilities exempt under section \n\line \n\line 94.27297A.71, subdivision 14\n\line ; \n\line 94.28 (3) building materials for correctional facilities under section \n\line 297A.71, subdivision 3; \n\line 94.29 (4) building materials used in a residence for disabled veterans exempt under section \n\line \n\line 94.30297A.71, subdivision 11\n\line ; \n\line 94.31 (5) elevators and building materials exempt under section \n\line 297A.71, subdivision 12; \n\line 94.32 (6) materials and supplies for qualified low-income housing under section \n\line 297A.71, \n\line 94.33subdivision 23\n\line ; \n\line 95.1 (7) materials, supplies, and equipment for municipal electric utility facilities under \n\line 95.2section \n\line 297A.71, subdivision 35; \n\line 95.3 (8) equipment and materials used for the generation, transmission, and distribution \n\line 95.4of electrical energy and an aerial camera package exempt under section \n\line 297A.68, \n\line 95.5subdivision 37; \n\line 95.6 (9) commuter rail vehicle and repair parts under section \n\line 297A.70, subdivision 3, \n\line 95.7paragraph (a), clause (10); \n\line 95.8 (10) materials, supplies, and equipment for construction or improvement of projects \n\line 95.9and facilities under section \n\line 297A.71, subdivision 40; \n\line 95.10(11) materials, supplies, and equipment for construction, improvement, or expansion \n\line 95.11of: \n\line 95.12(i) an aerospace defense manufacturing facility exempt under section \n\line 297A.71, \n\line 95.13subdivision 42\n\line ; \n\line 95.14(ii) a biopharmaceutical manufacturing facility exempt under section \n\line 297A.71, \n\line 95.15subdivision 45\n\line ; \n\line 95.16(iii) a research and development facility exempt under section \n\line 297A.71, subdivision \n\line 95.1746\n\line ; and \n\line 95.18(iv) an industrial measurement manufacturing and controls facility exempt under \n\line 95.19section \n\line 297A.71, subdivision 47; \n\line 95.20(12) enterprise information technology equipment and computer software for use in \n\line 95.21a qualified data center exempt under section \n\line 297A.68, subdivision 42; \n\line 95.22(13) materials, supplies, and equipment for qualifying capital projects under section \n\line \n\line 95.23297A.71, subdivision 44\n\line ; \n\line 95.24(14) items purchased for use in providing critical access dental services exempt \n\line 95.25under section \n\line 297A.70, subdivision 7, paragraph (c); {\strike and} \n\line 95.26(15) items and services purchased under a business subsidy agreement for use or \n\line 95.27consumption primarily in greater Minnesota exempt under section \n\line 297A.68, subdivision 44{\ul ;} \n\line 95.28{\ul (16) building materials and supplies for constructing a siding facility exempt under } \n\line 95.29{\ul section 297A.71, subdivision 49;} \n\line 95.30{\ul (17) building materials, equipment, and supplies for constructing or replacing real } \n\line 95.31{\ul property exempt under section 297A.71, subdivision 50; and} \n\line 95.32{\ul (18) materials and supplies used in and equipment incorporated into a private } \n\line 95.33{\ul redevelopment project exempt under section 297A.71, subdivision 51}. \n\line 95.34{\ul EFFECTIVE DATE.}{\ul Clause (16) is effective for sales and purchases made after } \n\line 95.35{\ul June 30, 2016. Clause (17) is effective for sales and purchases made after June 30, 2016, } \n\line 96.1{\ul and before July 1, 2018. Clause (18) is effective for sales and purchases made after June } \n\line 96.2{\ul 30, 2016, and before January 1, 2018.} \n\line \n\line 96.3 Sec. 15. Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read: \n\line 96.4 Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the \n\line 96.5commissioner, a refund equal to the tax paid on the gross receipts of the exempt items \n\line 96.6must be paid to the applicant. Only the following persons may apply for the refund: \n\line 96.7 (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser; \n\line 96.8 (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision; \n\line 96.9 (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits \n\line 96.10provided in United States Code, title 38, chapter 21; \n\line 96.11 (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead \n\line 96.12property; \n\line 96.13 (5) for subdivision 1, clause (6), the owner of the qualified low-income housing \n\line 96.14project; \n\line 96.15 (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or \n\line 96.16a joint venture of municipal electric utilities; \n\line 96.17 (7) for subdivision 1, clauses (8), (11), (12), {\strike and} (15), {\ul and (16), }the owner of the \n\line 96.18qualifying business; {\strike and} \n\line 96.19 (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the \n\line 96.20governmental entity that owns or contracts for the project or facility{\ul ; and} \n\line 96.21 {\ul (9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or } \n\line 96.22{\ul developer of the building or project}. \n\line 96.23{\ul EFFECTIVE DATE.}{\ul The change to clause (7) is effective for sales and purchases } \n\line 96.24{\ul made after June 30, 2016. Clause (9) is effective for sales and purchases made after June } \n\line 96.25{\ul 30, 2016, and before July 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, } \n\line 96.26{\ul subdivision 1, clause (17), and for sales and purchases made after June 30, 2016, and } \n\line 96.27{\ul before January 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision } \n\line 96.28{\ul 1, clause (18).} \n\line \n\line 96.29 Sec. 16. Minnesota Statutes 2014, section 297A.75, subdivision 3, is amended to read: \n\line 96.30 Subd. 3. Application. (a) The application must include sufficient information \n\line 96.31to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, \n\line 96.32subcontractor, or builder, under subdivision 1, clauses (3) to (13), or (15){\strike ,} {\ul to (18), }the \n\line 96.33contractor, subcontractor, or builder must furnish to the refund applicant a statement \n\line 96.34including the cost of the exempt items and the taxes paid on the items unless otherwise \n\line 97.1specifically provided by this subdivision. The provisions of sections \n\line 289A.40 and \n\line \n\line 97.2289A.50\n\line apply to refunds under this section. \n\line 97.3 (b) An applicant may not file more than two applications per calendar year for \n\line 97.4refunds for taxes paid on capital equipment exempt under section \n\line 297A.68, subdivision 5. \n\line 97.5{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 97.6{\ul June 30, 2016.} \n\line \n\line 97.7 Sec. 17. Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read: \n\line 97.8 Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision, \n\line 97.9"net revenue" means an amount equal to the revenues, including interest and penalties, \n\line 97.10collected under this section, during the fiscal year; less $32,000,000 in each fiscal year. \n\line 97.11 (b) On or before June 30 of each fiscal year, the commissioner of revenue shall \n\line 97.12estimate the amount of the net revenue for the current fiscal year. \n\line 97.13 (c) On or after July 1 of the subsequent fiscal year, the commissioner of management \n\line 97.14and budget shall transfer the net revenue as estimated in paragraph (b) from the general \n\line 97.15fund, as follows: \n\line 97.16 (1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to \n\line 97.17the county state-aid highway fund. Notwithstanding any other law to the contrary, the \n\line 97.18commissioner of transportation shall allocate the funds transferred under this clause to the \n\line 97.19counties in the metropolitan area, as defined in section \n\line 473.121, subdivision 4, excluding \n\line 97.20the counties of Hennepin and Ramsey, so that each county shall receive of such amount \n\line 97.21the percentage that its population, as defined in section \n\line 477A.011, subdivision 3, estimated \n\line 97.22or established by July 15 of the year prior to the current calendar year, bears to the total \n\line 97.23population of the counties receiving funds under this clause; and \n\line 97.24 (2) the remainder to the greater Minnesota transit account. \n\line 97.25{\ul (d) The revenues deposited under this subdivision do not include the revenues, } \n\line 97.26{\ul including interest and penalties, generated by the sales tax imposed under section } \n\line 97.27{\ul 297A.62, subdivision 1a, which must be deposited as provided under the Minnesota } \n\line 97.28{\ul Constitution, article XI, section 15.} \n\line 97.29{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with the estimate that must } \n\line 97.30{\ul be completed on or before June 30, 2017, for a transfer that occurs on or after July 1, 2017, } \n\line 97.31{\ul except paragraph (c) is effective the day following final enactment.} \n\line \n\line 97.32 Sec. 18. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, \n\line 97.33chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws \n\line 98.12003, First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, \n\line 98.2article 5, section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read: \n\line 98.3 Subd. 2. (a) Notwithstanding Minnesota Statutes, section \n\line 477A.016, or any other \n\line 98.4law, ordinance, or city charter provision to the contrary, the city of Duluth may, by \n\line 98.5ordinance, impose an additional sales tax of up to one and three-quarter percent on sales \n\line 98.6transactions which are described in Minnesota Statutes 2000, section \n\line 297A.01, subdivision \n\line 98.73, clause (c). The imposition of this tax shall not be subject to voter referendum under \n\line 98.8either state law or city charter provisions. When the city council determines that the taxes \n\line 98.9imposed under this paragraph at a rate of three-quarters of one percent and other sources \n\line 98.10of revenue produce revenue sufficient to pay debt service on bonds in the principal amount \n\line 98.11of $40,285,000 plus issuance and discount costs, issued for capital improvements at the \n\line 98.12Duluth Entertainment and Convention Center, which include a new arena, the rate of tax \n\line 98.13under this subdivision must be reduced by three-quarters of one percent. \n\line 98.14(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, \n\line 98.15section \n\line 477A.016, or any other law, ordinance, or city charter provision to the contrary, \n\line 98.16the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of \n\line 98.17one percent on sales transactions which are described in Minnesota Statutes 2000, section \n\line \n\line 98.18297A.01, subdivision 3\n\line , clause (c). This tax expires when the city council determines \n\line 98.19that the tax imposed under this paragraph, along with the tax imposed under section \n\line 98.2022, paragraph (b), has produced revenues sufficient to pay the debt service on bonds \n\line 98.21in a principal amount of no more than $18,000,000, plus issuance and discount costs, \n\line 98.22to finance capital improvements to public facilities to support tourism and recreational \n\line 98.23activities in that portion of the city west of {\strike 34th}{\ul 14th} Avenue West {\ul and the area south of } \n\line 98.24{\ul and including Skyline Parkway}. \n\line 98.25(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation \n\line 98.26bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for the \n\line 98.27costs of issuance and any premiums. The proceeds may be used to finance capital \n\line 98.28improvements to public facilities that support tourism and recreational activities in the \n\line 98.29portion of the city west of {\strike 34th}{\ul 14th} Avenue West {\ul and the area south of and including } \n\line 98.30{\ul Skyline Parkway}, as described in paragraph (b). The issuance of the bonds is subject to the \n\line 98.31provisions of Minnesota Statutes, chapter 475, except no election shall be required unless \n\line 98.32required by the city charter. The bonds shall not be included in computing net debt. The \n\line 98.33revenues from the taxes that the city of Duluth may impose under paragraph (b) and under \n\line 98.34section 22, paragraph (b), may be pledged to pay principal of and interest on such bonds. \n\line 99.1{\ul EFFECTIVE DATE.}{\ul This section is effective the day after the governing body of } \n\line 99.2{\ul the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section } \n\line 99.3{\ul 645.021, subdivisions 2 and 3.} \n\line \n\line 99.4 Sec. 19. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, \n\line 99.5article 8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and \n\line 99.6Laws 2014, chapter 308, article 3, section 22, is amended to read: \n\line 99.7 Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND \n\line 99.8MOTELS. \n\line 99.9 (a) Notwithstanding Minnesota Statutes, section \n\line 477A.016, or any other law, or \n\line 99.10ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, \n\line 99.11impose an additional tax of one percent upon the gross receipts from the sale of lodging \n\line 99.12for periods of less than 30 days in hotels and motels located in the city. The tax shall be \n\line 99.13collected in the same manner as the tax set forth in the Duluth city charter, section 54(d), \n\line 99.14paragraph one. The imposition of this tax shall not be subject to voter referendum under \n\line 99.15either state law or city charter provisions. \n\line 99.16(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, \n\line 99.17section \n\line 477A.016, or any other law, ordinance, or city charter provision to the contrary, \n\line 99.18the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half \n\line 99.19of one percent on the gross receipts from the sale of lodging for periods of less than \n\line 99.2030 days in hotels and motels located in the city. This tax expires when the city council \n\line 99.21first determines that the tax imposed under this paragraph, along with the tax imposed \n\line 99.22under section 21, paragraph (b), has produced revenues sufficient to pay the debt \n\line 99.23service on bonds in a principal amount of no more than $18,000,000, plus issuance and \n\line 99.24discount costs, to finance capital improvements to public facilities to support tourism and \n\line 99.25recreational activities in that portion of the city west of {\strike 34th}{\ul 14th} Avenue West {\ul and the } \n\line 99.26{\ul area south of and including Skyline Parkway}. \n\line 99.27{\ul EFFECTIVE DATE.}{\ul This section is effective the day after the governing body of } \n\line 99.28{\ul the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section } \n\line 99.29{\ul 645.021, subdivisions 2 and 3.} \n\line \n\line 99.30 Sec. 20. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by \n\line 99.31Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, \n\line 99.32and Laws 2009, chapter 88, article 4, section 14, is amended to read: \n\line 99.33 Subd. 3. Use of revenues. {\ul (a) }Revenues received from taxes authorized by \n\line 99.34subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax and to \n\line 100.1pay all or a portion of the expenses of constructing and improving facilities as part of an \n\line 100.2urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized \n\line 100.3expenses include, but are not limited to, acquiring property and paying relocation expenses \n\line 100.4related to the development of Riverfront 2000 and related facilities, and securing or paying \n\line 100.5debt service on bonds or other obligations issued to finance the construction of Riverfront \n\line 100.62000 and related facilities. For purposes of this section, "Riverfront 2000 and related \n\line 100.7facilities" means a civic-convention center, an arena, a riverfront park, a technology center \n\line 100.8and related educational facilities, and all publicly owned real or personal property that \n\line 100.9the governing body of the city determines will be necessary to facilitate the use of these \n\line 100.10facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and \n\line 100.11landscaping. It also includes the performing arts theatre and the Southern Minnesota \n\line 100.12Women's Hockey Exposition Center, for use by Minnesota State University, Mankato. \n\line 100.13 {\ul (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and subject } \n\line 100.14{\ul to voter approval at a general election held before December 31, 2018; provided that the } \n\line 100.15{\ul sales tax in the city of North Mankato is also extended at the same general election, the } \n\line 100.16{\ul city may by ordinance also use revenues from taxes authorized under subdivisions 1 and } \n\line 100.17{\ul 2, up to a maximum of $47,000,000, plus associated bond costs, to pay all or a portion of } \n\line 100.18{\ul the expenses of the following capital projects:} \n\line 100.19 {\ul (1) construction and improvements to regional recreational facilities including } \n\line 100.20{\ul existing hockey and curling rinks, a baseball park, youth athletic fields and facilities, the } \n\line 100.21{\ul municipal swimming pool including improvements to make the pool compliant with the } \n\line 100.22{\ul Americans with Disabilities Act, and indoor regional athletic facilities; } \n\line 100.23 {\ul (2) improvements to flood control and the levee system;} \n\line 100.24{\ul (3) water quality improvement projects in Blue Earth and Nicollet Counties; } \n\line 100.25{\ul (4) expansion of the regional transit building and related multimodal transit } \n\line 100.26{\ul improvements;} \n\line 100.27{\ul (5) regional public safety and emergency communications improvements and } \n\line 100.28{\ul equipment; and} \n\line 100.29{\ul (6) matching funds for improvements to publicly owned regional facilities including } \n\line 100.30{\ul a historic museum, supportive housing, and a senior center.} \n\line 100.31{\ul EFFECTIVE DATE.}{\ul This section is effective the day after the governing body of } \n\line 100.32{\ul the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section } \n\line 100.33{\ul 645.021, subdivisions 2 and 3.} \n\line \n\line 101.1 Sec. 21. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by \n\line 101.2Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter \n\line 101.3366, article 7, section 10, is amended to read: \n\line 101.4 Subd. 4. Expiration of taxing authority and expenditure limitation. The \n\line 101.5authority granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax \n\line 101.6shall expire {\strike on}{\ul at the earlier of when revenues are sufficient to pay off the bonds, including } \n\line 101.7{\ul interest and all other associated bond costs authorized under subdivision 5, or } December 31, \n\line 101.82022{\ul , unless the additional uses under subdivision 3, paragraph (b) or (c), are authorized. } \n\line 101.9{\ul If the additional use allowed in subdivision 3, paragraph (b), is authorized, the taxes expire } \n\line 101.10{\ul at the earlier of when revenues are sufficient to pay off the bonds, including interest and } \n\line 101.11{\ul all other associated bond costs authorized under subdivision 5, or December 31, 2038}. \n\line 101.12{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment } \n\line 101.13{\ul without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.} \n\line \n\line 101.14 Sec. 22. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read: \n\line 101.15 Subd. 5. Bonds. {\ul (a) }The city of Mankato may issue general obligation bonds of the \n\line 101.16city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, \n\line 101.17without election under Minnesota Statutes, chapter 475, on the question of issuance of the \n\line 101.18bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000 \n\line 101.19and related facilities shall not be included in computing any debt limitations applicable \n\line 101.20to the city of Mankato, and the levy of taxes required by section \n\line 475.61 to pay principal \n\line 101.21of and interest on the bonds shall not be subject to any levy limitation or be included in \n\line 101.22computing or applying any levy limitation applicable to the city. \n\line 101.23 {\ul (b) The city of Mankato, subject to voter approval at the election required under } \n\line 101.24{\ul subdivision 3, paragraph (b), may issue general obligation bonds of the city in an amount } \n\line 101.25{\ul not to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), } \n\line 101.26{\ul without election under Minnesota Statutes, chapter 475, on the question of issuance of the } \n\line 101.27{\ul bonds or a tax to pay them. The debt represented by bonds under this paragraph shall not be } \n\line 101.28{\ul included in computing any debt limitations applicable to the city of Mankato, and the levy } \n\line 101.29{\ul of taxes required by Minnesota Statutes, section }\n\line {\ul 475.61,}{\ul to pay principal of and interest on } \n\line 101.30{\ul the bonds, and shall not be subject to any levy limitation or be included in computing or } \n\line 101.31{\ul applying any levy limitation applicable to the city. The city may use tax revenue in excess } \n\line 101.32{\ul of one year's principal interest reserve for intended annual bond payments to pay all or a } \n\line 101.33{\ul portion of the cost of capital improvements authorized in subdivision 3.} \n\line 102.1{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment } \n\line 102.2{\ul without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.} \n\line \n\line 102.3 Sec. 23. Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read: \n\line 102.4 Subd. 6. Reverse referendum{\ul ; authorization of extension}. {\ul (a) }If the Mankato city \n\line 102.5council intends to exercise the authority provided by this section, it shall pass a resolution \n\line 102.6stating the fact before July 1, 1991. The resolution must be published for two successive \n\line 102.7weeks in the official newspaper of the city or, if there is no official newspaper, in a \n\line 102.8newspaper of general circulation in the city, together with a notice fixing a date for a public \n\line 102.9hearing on the matter. The hearing must be held at least two weeks but not more than four \n\line 102.10weeks after the first publication of the resolution. Following the public hearing, the city \n\line 102.11may determine to take no further action or adopt a resolution confirming its intention to \n\line 102.12exercise the authority. That resolution must also be published in the official newspaper of \n\line 102.13the city or, if there is no official newspaper, in a newspaper of general circulation in the \n\line 102.14city. If within 30 days after publication of the resolution a petition signed by voters equal \n\line 102.15in number to ten percent of the votes cast in the city in the last general election requesting \n\line 102.16a vote on the proposed resolution is filed with the county auditor, the resolution is not \n\line 102.17effective until it has been submitted to the voters at a general or special election and a \n\line 102.18majority of votes cast on the question of approving the resolution are in the affirmative. The \n\line 102.19commissioner of revenue shall prepare a suggested form of question to be presented at the \n\line 102.20election. The referendum must be held at a special or general election before December 1, \n\line 102.211991. This subdivision applies notwithstanding any city charter provision to the contrary. \n\line 102.22 {\ul (b) If the Mankato city council wishes to extend the taxes authorized under } \n\line 102.23{\ul subdivisions 1 and 2 to fund any of the projects listed in subdivision 3, paragraph (b), the } \n\line 102.24{\ul city must pass a resolution extending the taxes before July 1, 2016. The tax may not be } \n\line 102.25{\ul imposed unless approved by the voters.} \n\line 102.26{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment } \n\line 102.27{\ul without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.} \n\line \n\line 102.28 Sec. 24. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by \n\line 102.29Laws 2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter \n\line 102.307, article 4, section 4, is amended to read: \n\line 102.31 Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes, \n\line 102.32section 477A.016, or any other contrary provision of law, ordinance, or city charter, the \n\line 102.33city of Hermantown may, by ordinance, impose an additional sales tax of up to one percent \n\line 102.34on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur \n\line 103.1within the city. The proceeds of the tax imposed under this section must be used to {\ul pay } \n\line 103.2{\ul the cost of collection of the tax and to }meet the costs{\ul , including principal, interest, and } \n\line 103.3{\ul premiums of bonds used in the finance } of: \n\line 103.4 (1) extending a sewer interceptor line; \n\line 103.5 (2) construction of a booster pump station, reservoirs, and related improvements \n\line 103.6to the water system; {\strike and} \n\line 103.7 (3) construction of a building containing a police and fire station and an \n\line 103.8administrative services facility{\ul ; and} \n\line 103.9 {\ul (4) construction and equipping of a regional, multiuse wellness center}. \n\line 103.10(b) If the city imposed a sales tax of only one-half of one percent under paragraph \n\line 103.11(a), it may increase the tax to one percent to fund the purposes under paragraph (a) \n\line 103.12provided it is approved by the voters at a general election held before December 31, 2012. \n\line 103.13{\ul (c) The tax imposed in paragraph (a) may only be used to fund projects listed in } \n\line 103.14{\ul paragraph (a), clause (4), if approved by the local voters at the November 8, 2016, general } \n\line 103.15{\ul election. Revenue raised from the tax imposed under this subdivision in every year must } \n\line 103.16{\ul first be used to meet obligations in that year related to the projects in paragraph (a), clauses } \n\line 103.17{\ul (1) to (3), with excess revenues available to fund the projects in paragraph (a), clause (4).} \n\line 103.18{\ul EFFECTIVE DATE.}{\ul This section is effective the day after the governing body of } \n\line 103.19{\ul the city of Hermantown and its chief clerical officer comply with Minnesota Statutes, } \n\line 103.20{\ul section 645.021, subdivisions 2 and 3.} \n\line \n\line 103.21 Sec. 25. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by \n\line 103.22Laws 2006, chapter 259, article 3, section 4, is amended to read: \n\line 103.23 Subd. 4. Termination. The tax authorized under this section terminates on March \n\line 103.2431, 2026{\ul , unless the additional use under subdivision 1, paragraph (a), is approved } \n\line 103.25{\ul as required under subdivision 1, paragraph (c). If the additional project is approved } \n\line 103.26{\ul as required under subdivision 1, paragraph (c), the tax authorized under this section } \n\line 103.27{\ul terminates at the earlier of (1) December 31, 2036, or (2) when the Hermantown City } \n\line 103.28{\ul Council first determines that sufficient funds have been received from the tax to fund the } \n\line 103.29{\ul costs, including bonds and associated bond costs for the uses specified in subdivision 1, } \n\line 103.30{\ul paragraph (a)}. Any funds remaining after completion of the improvements and retirement \n\line 103.31or redemption of the bonds may be placed in the general fund of the city. \n\line 103.32{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment } \n\line 103.33{\ul without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.} \n\line \n\line 104.1 Sec. 26. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by \n\line 104.2Laws 2008, chapter 366, article 7, section 12, is amended to read: \n\line 104.3 Subdivision 1. Sales and use tax. {\ul (a) }Notwithstanding Minnesota Statutes, section \n\line \n\line 104.4477A.016\n\line , or any other provision of law, ordinance, or city charter, if approved by the city \n\line 104.5voters at the first municipal general election held after the date of final enactment of this act \n\line 104.6or at a special election held November 2, 1999, the city of Proctor may impose by ordinance \n\line 104.7a sales and use tax of up to one-half of one percent for the purposes specified in subdivision \n\line 104.83. The provisions of Minnesota Statutes, section \n\line 297A.99, govern the imposition, \n\line 104.9administration, collection, and enforcement of the tax authorized under this subdivision. \n\line 104.10{\ul (b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of } \n\line 104.11{\ul law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional } \n\line 104.12{\ul sales and use tax of up to one-half of one percent as approved by the voters at the } \n\line 104.13{\ul November 4, 2014, general election. The revenues received from the additional tax must } \n\line 104.14{\ul be used for the purposes specified in subdivision 3, paragraph (b).} \n\line 104.15{\ul EFFECTIVE DATE.}{\ul This section is effective the day after the governing body of } \n\line 104.16{\ul the city of Proctor and its chief clerical officer comply with Minnesota Statutes, section } \n\line 104.17{\ul 645.021, subdivisions 2 and 3, but only if the local approval requirement under section } \n\line 104.18{\ul 10 is also met.} \n\line \n\line 104.19 Sec. 27. Laws 2008, chapter 366, article 7, section 20, is amended to read: \n\line 104.20 Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED. \n\line 104.21 Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes, \n\line 104.22section \n\line 477A.016, or any other provision of law, ordinance, or city charter, pursuant to \n\line 104.23the approval of the voters on November 7, 2006, the city of North Mankato may impose \n\line 104.24by ordinance a sales and use tax of one-half of one percent for the purposes specified \n\line 104.25in subdivision 2. The provisions of Minnesota Statutes, section \n\line 297A.99, govern the \n\line 104.26imposition, administration, collection, and enforcement of the taxes authorized under \n\line 104.27this subdivision. \n\line 104.28 Subd. 2. Use of revenues. {\ul (a) }Revenues received from the tax authorized by \n\line 104.29subdivision 1 must be used to pay all or part of the capital costs of the following projects: \n\line 104.30 (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 \n\line 104.31interchange project; \n\line 104.32 (2) development of regional parks and hiking and biking trails{\ul , including } \n\line 104.33{\ul construction of indoor regional athletic facilities}; \n\line 104.34 (3) expansion of the North Mankato Taylor Library; \n\line 104.35 (4) riverfront redevelopment; and \n\line 105.1 (5) lake improvement projects. \n\line 105.2 The total amount of revenues from the tax in subdivision 1 that may be used to fund \n\line 105.3these projects is $6,000,000 plus any associated bond costs. \n\line 105.4 {\ul (b) If the city extends the tax as authorized under subdivision 2a, the total amount that } \n\line 105.5{\ul may be used to fund these projects is increased by $9,000,000, plus associated bond costs.} \n\line 105.6 {\ul Subd. 2a.} {\ul Authorization to extend the tax.} {\ul Notwithstanding Minnesota Statutes, } \n\line 105.7{\ul section 297A.99, subdivision 3, the North Mankato city council may, by resolution, extend } \n\line 105.8{\ul the tax authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus } \n\line 105.9{\ul associated bond costs, to fund the projects in subdivision 2, paragraph (a), if approved by } \n\line 105.10{\ul the voters at a general election held before December 31, 2018; provided that the sales tax } \n\line 105.11{\ul in the city of Mankato is also extended at the same general election.} \n\line 105.12 Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the \n\line 105.13voters at the November 7, 2006 referendum authorizing the imposition of the taxes in \n\line 105.14this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and \n\line 105.15administrative expenses for the projects described in subdivision 2,{\ul paragraph (a),} in an \n\line 105.16amount that does not exceed $6,000,000. A separate election to approve the bonds under \n\line 105.17Minnesota Statutes, section \n\line 475.58, is not required. \n\line 105.18{\ul (b) The city of North Mankato, subject to the referendum in subdivision 2a, allowing } \n\line 105.19{\ul for additional revenue to be spent for the projects in subdivision 2, may issue additional } \n\line 105.20{\ul bonds under Minnesota Statutes, chapter 475, to pay capital and administrative expenses } \n\line 105.21{\ul for those projects in an amount that does not exceed $9,000,000. A separate election to } \n\line 105.22{\ul approve the bonds under Minnesota Statutes, section }\n\line {\ul 475.58}{\ul , is not required.} \n\line 105.23 {\strike (b)}{\ul (c)} The debt represented by the bonds is not included in computing any debt \n\line 105.24limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section \n\line \n\line 105.25475.61\n\line , to pay principal and interest on the bonds is not subject to any levy limitation. \n\line 105.26 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when \n\line 105.27the city council determines that the amount of revenues received from the taxes to pay for \n\line 105.28the projects under subdivision 2{\ul , paragraph (a),} first equals or exceeds $6,000,000 plus the \n\line 105.29additional amount needed to pay the costs related to issuance of bonds under subdivision \n\line 105.303, including interest on the bonds{\ul , unless the tax is extended as allowed in this section. If } \n\line 105.31{\ul the tax is extended as allowed under the referendum under subdivision 2a, the tax expires } \n\line 105.32{\ul at the earlier of December 31, 2038, or when revenues from the taxes first equal or exceed } \n\line 105.33{\ul $15,000,000 plus the additional amount needed to pay costs related to issuance of bonds } \n\line 105.34{\ul under subdivision 3, including interest}. Any funds remaining after completion of the \n\line 105.35projects and retirement or redemption of the bonds shall be placed in a capital facilities \n\line 106.1and equipment replacement fund of the city. The tax imposed under subdivision 1 may \n\line 106.2expire at an earlier time if the city so determines by ordinance. \n\line 106.3{\ul EFFECTIVE DATE.}{\ul This section is effective the day after the governing body of } \n\line 106.4{\ul the city of North Mankato and its chief clerical officer comply with Minnesota Statutes, } \n\line 106.5{\ul section 645.021, subdivisions 2 and 3.} \n\line \n\line 106.6 Sec. 28. {\ul CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.} \n\line 106.7 {\ul Subdivision 1.} {\ul Sales and use tax authorization.} {\ul Notwithstanding Minnesota } \n\line 106.8{\ul Statutes, section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, } \n\line 106.9{\ul or city charter, and as approved by the voters at a special election on March 7, 2016, the } \n\line 106.10{\ul city of East Grand Forks may impose, by ordinance, a sales and use tax of up to one } \n\line 106.11{\ul percent for the purposes specified in subdivision 2. Except as otherwise provided in this } \n\line 106.12{\ul section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, } \n\line 106.13{\ul administration, collection, and enforcement of the tax authorized under this subdivision.} \n\line 106.14 {\ul Subd. 2.} {\ul Use of sales and use tax revenues.} {\ul The revenues derived from the tax } \n\line 106.15{\ul authorized under subdivision 1 must be used by the city of East Grand Forks to pay the } \n\line 106.16{\ul costs of collecting and administering the tax and to finance the capital and administrative } \n\line 106.17{\ul costs of improvement to the city public swimming pool. Authorized expenses include, } \n\line 106.18{\ul but are not limited to, paying construction expenses related to the renovation and the } \n\line 106.19{\ul development of these facilities and improvements, and securing and paying debt service } \n\line 106.20{\ul on bonds issued under subdivision 3 or other obligations issued to finance improvement of } \n\line 106.21{\ul the public swimming pool in the city of East Grand Forks} \n\line 106.22 {\ul Subd. 3.} {\ul Bonding authority.} {\ul (a) The city of East Grand Forks may issue bonds } \n\line 106.23{\ul under Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the } \n\line 106.24{\ul facilities authorized in subdivision 2. The aggregate principal amount of bonds issued } \n\line 106.25{\ul under this subdivision may not exceed $2,820,000, plus an amount to be applied to the } \n\line 106.26{\ul payment of the costs of issuing the bonds. The bonds may be paid from or secured by } \n\line 106.27{\ul any funds available to the city of East Grand Forks, including the tax authorized under } \n\line 106.28{\ul subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota } \n\line 106.29{\ul Statutes, sections 275.60 and 275.61.} \n\line 106.30{\ul (b) The bonds are not included in computing any debt limitation applicable to the } \n\line 106.31{\ul city of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, } \n\line 106.32{\ul to pay principal and interest on the bonds is not subject to any levy limitation. A separate } \n\line 106.33{\ul election to approve the bonds under Minnesota Statutes, section 475.58, is not required.} \n\line 107.1 {\ul Subd. 4.} {\ul Termination of taxes.} {\ul The tax imposed under subdivision 1 expires at } \n\line 107.2{\ul the later of: (1) five years after the tax is first imposed; or (2) when the city council } \n\line 107.3{\ul determines that $2,820,000 has been received from the tax to pay for the cost of the } \n\line 107.4{\ul projects authorized under subdivision 2, plus an amount sufficient to pay the costs related } \n\line 107.5{\ul to issuance of the bonds authorized under subdivision 3, including interest on the bonds. } \n\line 107.6{\ul Any funds remaining after payment of all such costs and retirement or redemption of the } \n\line 107.7{\ul bonds shall be placed in the general fund of the city. The tax imposed under subdivision 1 } \n\line 107.8{\ul may expire at an earlier time if the city so determines by ordinance.} \n\line 107.9{\ul EFFECTIVE DATE.}{\ul This section is effective the day after compliance by the } \n\line 107.10{\ul governing body of the city of East Grand Forks with Minnesota Statutes, section 645.021, } \n\line 107.11{\ul subdivisions 2 and 3.} \n\line \n\line 107.12 Sec. 29. {\ul CITY OF MARSHALL; VALIDATION OF PRIOR ACT.} \n\line 107.13{\ul (a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city } \n\line 107.14{\ul of Marshall may approve Laws 2011, First Special Session chapter 7, article 4, section } \n\line 107.15{\ul 14, and file its approval with the secretary of state by June 15, 2013. If approved as } \n\line 107.16{\ul authorized under this paragraph, actions undertaken by the city as approved by the voters } \n\line 107.17{\ul on November 6, 2012, and otherwise in accordance with Laws 2011, First Special Session } \n\line 107.18{\ul chapter 7, article 4, section 14, are validated.} \n\line 107.19{\ul (b) Notwithstanding the time limit on the imposition of tax under Laws 2011, First } \n\line 107.20{\ul Special Session chapter 7, article 4, section 14, and subject to local approval under } \n\line 107.21{\ul paragraph (a), the city of Marshall may impose the tax on or before July 1, 2013.} \n\line 107.22{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 107.23 Sec. 30. {\ul CERTAIN REIMBURSEMENT AUTHORIZED; CONSIDERED } \n\line 107.24{\ul OPERATING OR CAPITAL EXPENSES.} \n\line 107.25 {\ul Subdivision 1.} {\ul Reimbursement authorized.} {\ul (a) An amount equivalent to the taxes } \n\line 107.26{\ul paid under Minnesota Statutes, chapter 297A, and any local taxes administered by the } \n\line 107.27{\ul Department of Revenue, on purchases of tangible personal property, nonresidential } \n\line 107.28{\ul parking services, and lodging, as these terms are defined in Minnesota Statutes, chapter } \n\line 107.29{\ul 297A, used and consumed in connection with Super Bowl LII or related events sponsored } \n\line 107.30{\ul by the National Football League or its affiliates, will be reimbursed by the Minnesota } \n\line 107.31{\ul Sports Facilities Authority up to $1,600,000, if made after June 30, 2016, and before } \n\line 107.32{\ul March 1, 2018. Only purchases made by the Minnesota Super Bowl Host Committee, the } \n\line 108.1{\ul National Football League or its affiliates, or their employees or independent contractors, } \n\line 108.2{\ul qualify to be reimbursed under this section.} \n\line 108.3{\ul (b) For purposes of this subdivision:} \n\line 108.4{\ul (1) "employee or independent contractor" means only those employees or } \n\line 108.5{\ul independent contractors that make qualifying purchases that are reimbursed by the } \n\line 108.6{\ul Minnesota Super Bowl Host Committee or the National Football League or its affiliates; and} \n\line 108.7{\ul (2) "related events sponsored by the National Football League or its affiliates" } \n\line 108.8{\ul includes but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, } \n\line 108.9{\ul NFL Honors, and NFL House.} \n\line 108.10 {\ul Subd. 2.} {\ul Operating reserve and capital reserve fund.} {\ul Notwithstanding the } \n\line 108.11{\ul requirements of Minnesota Statutes, section 473J.13, subdivisions 2 and 4, up to } \n\line 108.12{\ul $1,600,000 of the balance in the operating reserve or capital reserve fund may be used for } \n\line 108.13{\ul the purposes of paying reimbursements authorized under subdivision 1.} \n\line 108.14{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 108.15{\ul June 30, 2016, and before March 1, 2018.} \n\line \n\line 108.16 Sec. 31. {\ul SEVERABILITY.} \n\line 108.17{\ul If any provision of sections 2 to 5 or the application thereof is held invalid, such } \n\line 108.18{\ul invalidity shall not affect the provisions or applications of the sections that can be given } \n\line 108.19{\ul effect without the invalid provisions or applications.} \n\line 108.20{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 108.21 Sec. 32. {\ul EFFECTIVE DATE.} \n\line 108.22{\ul (a) The provisions of sections 2 to 5 are effective at the earlier of:} \n\line 108.23{\ul (1) a decision by the United States Supreme Court modifying its decision in Quill } \n\line 108.24{\ul Corp. v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a } \n\line 108.25{\ul physical presence in the state to collect and remit sales tax; or} \n\line 108.26{\ul (2) July 1, 2019.} \n\line 108.27{\ul (b) Notwithstanding paragraph (a) or the provisions of sections 1 to 4, if a federal } \n\line 108.28{\ul law is enacted authorizing a state to impose a requirement to collect and remit sales tax } \n\line 108.29{\ul on retailers without a physical presence in the state, the commissioner must enforce the } \n\line 108.30{\ul provisions of this section and sections 1 to 4 to the extent allowed under federal law.} \n\line 108.31{\ul (c) The commissioner of revenue shall notify the revisor of statutes when either of } \n\line 108.32{\ul the provisions in paragraph (a) or (b) apply.} \n\line \n\line
109.1ARTICLE 5 \n\line \n\line
\n\line
109.2SPECIAL TAXES \n\line \n\line
\n\line 109.3 Section 1. Minnesota Statutes 2014, section 296A.01, subdivision 12, is amended to \n\line 109.4read: \n\line 109.5 Subd. 12. Compressed natural gas or CNG. "Compressed natural gas" or "CNG" \n\line 109.6means natural gas, primarily methane, condensed under high pressure and stored in \n\line 109.7specially designed storage tanks at between 2,000 and 3,600 pounds per square inch. \n\line 109.8For purposes of this chapter, the energy content of CNG is considered to be {\strike 1,000}{\ul 900 } \n\line 109.9BTUs per cubic foot. \n\line 109.10{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 109.11{\ul June 30, 2016.} \n\line \n\line 109.12 Sec. 2. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision \n\line 109.13to read: \n\line 109.14 {\ul Subd. 13a.} {\ul Dealer of gasoline used as a substitute for aviation gasoline.} {\ul "Dealer } \n\line 109.15{\ul of gasoline used as a substitute for aviation gasoline" means any person who sells gasoline } \n\line 109.16{\ul on the premises of an airport as defined under section 360.013, subdivision 39, to be } \n\line 109.17{\ul dispensed directly into the fuel tank of an aircraft.} \n\line 109.18{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 109.19{\ul June 30, 2016.} \n\line \n\line 109.20 Sec. 3. Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read: \n\line 109.21 Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or \n\line 109.22denatured ethanol purchased by: \n\line 109.23 (1) a transit system or transit provider receiving financial assistance or \n\line 109.24reimbursement under section \n\line 174.24, \n\line 256B.0625, subdivision 17, or \n\line 473.384; \n\line 109.25 (2) providers of transportation to recipients of medical assistance home and \n\line 109.26community-based services waivers enrolled in day programs, including adult day care, \n\line 109.27family adult day care, day treatment and habilitation, prevocational services, and \n\line 109.28structured day services; \n\line 109.29(3) an ambulance service licensed under chapter 144E; \n\line 109.30(4) providers of medical or dental services by a federally qualified health center, \n\line 109.31as defined under title 19 of the Social Security Act, as amended by Section 4161 of the \n\line 109.32Omnibus Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a \n\line 109.33mobile medical unit; {\strike or} \n\line 110.1 (5) a licensed distributor to be delivered to a terminal for use in blending{\ul ; or} \n\line 110.2 {\ul (6) a dealer of gasoline used as a substitute for aviation gasoline}. \n\line 110.3{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 110.4{\ul June 30, 2016.} \n\line \n\line 110.5 Sec. 4. Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read: \n\line 110.6 Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates: \n\line 110.7 (a) Liquefied petroleum gas or propane is taxed at the rate of \n\line 18.75 cents per gallon. \n\line 110.8 (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon. \n\line 110.9 (c) Compressed natural gas is taxed at the rate of {\strike $2.174}{\ul $1.974} per thousand cubic \n\line 110.10feet; or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline \n\line 110.11equivalent," as defined by the National Conference on Weights and Measures, is 5.66 \n\line 110.12pounds of natural gas{\ul or 126.67 cubic feet}. \n\line 110.13 (d) All other special fuel is taxed at the same rate as the gasoline excise tax as \n\line 110.14specified in section \n\line 296A.07, subdivision 2. The tax is payable in the form and manner \n\line 110.15prescribed by the commissioner. \n\line 110.16{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 110.17{\ul June 30, 2016.} \n\line \n\line 110.18 Sec. 5. Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read: \n\line 110.19 Subdivision 1. Gasoline tax imposed. Subject to any refunds or credits there is \n\line 110.20imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline received, \n\line 110.21sold, stored, or withdrawn from storage in this state{\ul and on all gasoline used as a substitute } \n\line 110.22{\ul for aviation gasoline}. Aviation gasoline is defined in section \n\line 296A.01, subdivision 7. \n\line 110.23{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 110.24{\ul June 30, 2016.} \n\line \n\line 110.25 Sec. 6. Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read: \n\line 110.26 Subd. 3. Exception to tax for aviation use. The provisions of subdivisions 1 and 2 \n\line 110.27do not apply to {\ul gasoline used as a substitute for aviation gasoline, }aviation gasoline{\ul ,} or \n\line 110.28special fuel purchased and placed in the fuel tanks of an aircraft outside the state, even \n\line 110.29though the gasoline may be consumed within this state. \n\line 110.30{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 110.31{\ul June 30, 2016.} \n\line \n\line 111.1 Sec. 7. Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read: \n\line 111.2 Subd. 5. Tax not on consumption. The taxes imposed by subdivisions 1 and 2 are \n\line 111.3expressly declared not to be a tax upon consumption of {\ul gasoline used as a substitute for } \n\line 111.4{\ul aviation gasoline, }aviation gasoline{\ul ,} or special fuel by an aircraft. \n\line 111.5{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 111.6{\ul June 30, 2016.} \n\line \n\line 111.7 Sec. 8. Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read: \n\line 111.8 Subd. 6. Exemptions. The provisions of subdivisions 1 and 2 do not apply to \n\line 111.9{\ul gasoline used as a substitute for aviation gasoline, }aviation gasoline{\ul ,} or jet fuel purchased \n\line 111.10by an ambulance service licensed under chapter 144E. \n\line 111.11{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 111.12{\ul June 30, 2016.} \n\line \n\line 111.13 Sec. 9. Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read: \n\line 111.14 Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except \n\line 111.15as provided in paragraph (e), on or before the 23rd day of each month, every person \n\line 111.16who is required to pay a gasoline tax shall file with the commissioner a report, in the \n\line 111.17form and manner prescribed by the commissioner, showing the number of gallons of \n\line 111.18petroleum products received by the reporter during the preceding calendar month, and \n\line 111.19other information the commissioner may require. A written report is deemed to have \n\line 111.20been filed as required in this subdivision if postmarked on or before the 23rd day of the \n\line 111.21month in which the tax is payable. \n\line 111.22(b) The number of gallons of gasoline must be reported in United States standard \n\line 111.23liquid gallons, 231 cubic inches, except that the commissioner may upon written \n\line 111.24application and for cause shown permit the distributor to report the number of gallons of \n\line 111.25gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application is \n\line 111.26granted, all gasoline covered in the application and allowed by the commissioner must \n\line 111.27continue to be reported by the distributor on the adjusted basis for a period of one year \n\line 111.28from the date of the granting of the application. The number of gallons of petroleum \n\line 111.29products other than gasoline must be reported as originally invoiced. Each report must \n\line 111.30show separately the number of gallons of aviation gasoline received by the reporter during \n\line 111.31each calendar month{\ul and the number of gallons of gasoline sold to a dealer of gasoline } \n\line 111.32{\ul used as a substitute for aviation fuel during each calendar month}. \n\line 112.1(c) Each report must also include the amount of gasoline tax on gasoline received by \n\line 112.2the reporter during the preceding month. In computing the tax a deduction of 2.5 percent \n\line 112.3of the quantity of gasoline received by a distributor shall be made for evaporation and loss. \n\line 112.4At the time of reporting, the reporter shall submit satisfactory evidence that one-third of \n\line 112.5the 2.5 percent deduction has been credited or paid to dealers on quantities sold to them. \n\line 112.6(d) Each report shall contain a confession of judgment for the amount of the tax \n\line 112.7shown due to the extent not timely paid. \n\line 112.8(e) Under certain circumstances and with the approval of the commissioner, \n\line 112.9taxpayers may be allowed to file reports annually. \n\line 112.10{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 112.11{\ul June 30, 2016.} \n\line \n\line 112.12 Sec. 10. Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read: \n\line 112.13 Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any \n\line 112.14person who buys {\ul gasoline from a dealer of gasoline used as a substitute for aviation } \n\line 112.15{\ul gasoline, or buys }aviation gasoline or special fuel for aircraft use and who has paid the \n\line 112.16excise taxes due directly or indirectly through the amount of the tax being included in the \n\line 112.17price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly \n\line 112.18sells it to any person for use in motor vehicles shall, on or before the 23rd day of the month \n\line 112.19following that in which such gasoline or special fuel was so used or sold, report the fact of \n\line 112.20the use or sale to the commissioner in the form and manner prescribed by the commissioner. \n\line 112.21(b) Any person who buys gasoline other than aviation gasoline and who has paid the \n\line 112.22motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being \n\line 112.23included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to any \n\line 112.24person to be used for the purpose of producing or generating power for propelling aircraft, \n\line 112.25or who receives, stores, or withdraws from storage gasoline to be used for that purpose, \n\line 112.26shall, on or before the 23rd day of the month following that in which such gasoline was so \n\line 112.27sold, stored, or withdrawn from storage, report the fact of the sale, storage, or withdrawal \n\line 112.28from storage to the commissioner in the form and manner prescribed by the commissioner. \n\line 112.29{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 112.30{\ul June 30, 2016.} \n\line \n\line 112.31 Sec. 11. Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read: \n\line 112.32 Subdivision 1. Aviation refund requirements. Any person claiming to be entitled \n\line 112.33to any refund or credit provided for in subdivision 3 shall receive the refund or credit \n\line 113.1upon filing with the commissioner a claim in such form and manner prescribed by the \n\line 113.2commissioner. The claim shall set forth, among other things, the total number of gallons \n\line 113.3of {\ul gasoline used as a substitute for aviation gasoline, }aviation gasoline{\ul ,} or special fuel \n\line 113.4for aircraft use upon which the claimant has directly or indirectly paid the excise tax \n\line 113.5provided for in this chapter, during the calendar year, which has been received, stored, or \n\line 113.6withdrawn from storage by the claimant in this state and not sold or otherwise disposed of \n\line 113.7to others. All claims for refunds under this subdivision shall be made on or before April \n\line 113.830 following the end of the calendar year for which the refund is claimed. \n\line 113.9{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 113.10{\ul June 30, 2016.} \n\line \n\line 113.11 Sec. 12. Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read: \n\line 113.12 Subd. 2. Claim for refund; aviation tax. (a) Any person who buys {\ul gasoline used } \n\line 113.13{\ul as a substitute for aviation gasoline, }aviation gasoline{\ul ,} or special fuel for aircraft use and \n\line 113.14who has paid the excise taxes directly or indirectly through the amount of the tax being \n\line 113.15included in the price, or otherwise, who does not use it in motor vehicles or receive, sell, \n\line 113.16store, or withdraw it from storage for the purpose of producing or generating power for \n\line 113.17propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing \n\line 113.18with the commissioner a claim in the form and manner prescribed by the commissioner. \n\line 113.19The claim shall state the total amount of the {\ul gasoline used as a substitute for aviation } \n\line 113.20{\ul gasoline, }aviation gasoline{\ul ,} or special fuel for aircraft use purchased and used by the \n\line 113.21applicant, and shall state when and for what purpose it was used. On being satisfied that \n\line 113.22the claimant is entitled to payment, the commissioner shall approve the claim and transmit \n\line 113.23it to the commissioner of management and budget. The postmark on the envelope in \n\line 113.24which a written claim is mailed determines the date of filing. \n\line 113.25(b) If a claim contains an error in preparation in computation or preparation, the \n\line 113.26commissioner is authorized to adjust the claim in accordance with the evidence shown on \n\line 113.27the claim or other information available to the commissioner. \n\line 113.28(c) An applicant who files a claim that is false or fraudulent, is subject to the \n\line 113.29penalties provided in section \n\line 296A.23 for knowingly and willfully making a false claim. \n\line 113.30{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 113.31{\ul June 30, 2016.} \n\line \n\line 113.32 Sec. 13. Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read: \n\line 114.1 Subd. 3. Refund on graduated basis. Any person who has directly or indirectly \n\line 114.2paid the excise tax on {\ul gasoline used as a substitute for aviation gasoline, }aviation gasoline{\ul ,} \n\line 114.3or special fuel for aircraft use provided for by this chapter and {\ul either paid }the airflight \n\line 114.4property tax under section \n\line 270.072 {\ul or is an aerial applicator with a category B, general } \n\line 114.5{\ul aerial license, under section 18B.33, }shall, as to all such {\ul gasoline used as a substitute for } \n\line 114.6{\ul aviation gasoline, }aviation gasoline{\ul ,} and special fuel received, stored, or withdrawn from \n\line 114.7storage by the person in this state in any calendar year and not sold or otherwise disposed \n\line 114.8of to others, or intended for sale or other disposition to others, on which such tax has been \n\line 114.9so paid, be entitled to the following graduated reductions in such tax for that calendar \n\line 114.10year, to be obtained by means of the following refunds: \n\line 114.11(1) on each gallon of {\strike such} {\ul gasoline used as a substitute for aviation gasoline, }aviation \n\line 114.12gasoline{\ul ,} or special fuel up to 50,000 gallons, all but five cents per gallon; \n\line 114.13(2) on each gallon of {\strike such} {\ul gasoline used as a substitute for aviation gasoline, }aviation \n\line 114.14gasoline{\ul ,} or special fuel above 50,000 gallons and not more than 150,000 gallons, all \n\line 114.15but two cents per gallon; \n\line 114.16(3) on each gallon of {\strike such} {\ul gasoline used as a substitute for aviation gasoline, }aviation \n\line 114.17gasoline{\ul ,} or special fuel above 150,000 gallons and not more than 200,000 gallons, all \n\line 114.18but one cent per gallon; \n\line 114.19(4) on each gallon of {\strike such} {\ul gasoline used as a substitute for aviation gasoline, }aviation \n\line 114.20gasoline{\ul ,} or special fuel above 200,000, all but one-half cent per gallon. \n\line 114.21{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 114.22{\ul June 30, 2016.} \n\line \n\line 114.23 Sec. 14. Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read: \n\line 114.24 Subdivision 1. Intent; gasoline use. All gasoline received in this state and all \n\line 114.25gasoline produced in or brought into this state except aviation gasoline{\ul , gasoline sold to a } \n\line 114.26{\ul dealer of gasoline used as a substitute for aviation gasoline,} and marine gasoline shall be \n\line 114.27determined to be intended for use in motor vehicles in this state. \n\line 114.28{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 114.29{\ul June 30, 2016.} \n\line \n\line 114.30 Sec. 15. Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read: \n\line 114.31 Subd. 8. Airports. The revenues derived from the excise taxes on {\ul gasoline used as } \n\line 114.32{\ul a substitute for aviation gasoline, }aviation gasoline{\ul ,} and on special fuel received, sold, \n\line 114.33stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid into \n\line 115.1the state treasury and credited to the state airports fund. There is hereby appropriated such \n\line 115.2sums as are needed to carry out the provisions of this subdivision. \n\line 115.3{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 115.4{\ul June 30, 2016.} \n\line \n\line 115.5 Sec. 16. Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read: \n\line 115.6 Subdivision 1. Retention. All distributors, dealers, special fuel dealers, bulk \n\line 115.7purchasers{\ul , dealers of gasoline used as a substitute for aviation gasoline}, and all users of \n\line 115.8special fuel shall keep a true and accurate record of all purchases, transfers, sales, and use \n\line 115.9of petroleum products and special fuel, including copies of all sales tickets issued, in a form \n\line 115.10and manner approved by the commissioner, and shall retain all such records for 3-1/2 years. \n\line 115.11{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 115.12{\ul June 30, 2016.} \n\line \n\line 115.13 Sec. 17. Minnesota Statutes 2014, section 297E.02, subdivision 1, is amended to read: \n\line 115.14 Subdivision 1. Imposition. {\ul (a) }A tax is imposed on all lawful gambling other than \n\line 115.15(1) paper or electronic pull-tab deals or games; (2) tipboard deals or games; (3) electronic \n\line 115.16linked bingo; and (4) items listed in section \n\line 297E.01, subdivision 8, clauses (4) and (5), at \n\line 115.17the rate of 8.5 percent on the gross receipts as defined in section \n\line 297E.01, subdivision 8, \n\line 115.18less prizes actually paid. \n\line 115.19{\ul (b) A tax is imposed on the conduct of paper pull-tabs, at the rate of nine percent of } \n\line 115.20{\ul the gross receipts, less prizes actually paid, of the pull-tab deal. The tax imposed under } \n\line 115.21{\ul this paragraph applies only to paper pull-tabs sold at a bingo hall as defined in section } \n\line 115.22{\ul 349.12, subdivision 4a.} \n\line 115.23{\ul (c) }The tax imposed by this subdivision is in lieu of the tax imposed by section \n\line \n\line 115.24297A.62\n\line and all local taxes and license fees except a fee authorized under section \n\line 349.16, \n\line 115.25subdivision 8\n\line , or a tax authorized under subdivision 5. \n\line 115.26{\ul (d) }The tax imposed under this subdivision is payable by the organization or party \n\line 115.27conducting, directly or indirectly, the gambling. \n\line 115.28{\ul EFFECTIVE DATE.}{\ul This section is effective for gross receipts received on or } \n\line 115.29{\ul after July 1, 2016.} \n\line \n\line 115.30 Sec. 18. Minnesota Statutes 2015 Supplement, section 297E.02, subdivision 6, is \n\line 115.31amended to read: \n\line 116.1 Subd. 6. Combined net receipts tax. (a) In addition to the taxes imposed under \n\line 116.2subdivision 1, a tax is imposed on the combined net receipts of the organization. As used \n\line 116.3in this section, "combined net receipts" is the sum of the organization's gross receipts \n\line 116.4from lawful gambling less gross receipts directly derived from the conduct of paper \n\line 116.5bingo, raffles, and paddlewheels, as defined in section \n\line 297E.01, subdivision 8, and less \n\line 116.6the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, and \n\line 116.7paddlewheels, for the fiscal year. The combined net receipts of an organization are subject \n\line 116.8to a tax computed according to the following schedule: \n\line \n\line
If the combined net \n\line receipts for the fiscal year \n\line are: \n\line \n\line
\n\line
\n\line
The tax is: \n\line \n\line
\n\line
\n\line
\n\line
\n\line
116.12 \n\line \n\line
\n\line
\n\line
Not over $87,500 \n\line \n\line
\n\line
\n\line
nine percent \n\line \n\line
\n\line
\n\line
\n\line
\n\line
116.13 \n\line 116.14 \n\line \n\line
\n\line
\n\line
Over $87,500, but not over \n\line $122,500 \n\line \n\line
\n\line
\n\line
$7,875 plus 18 percent of the amount \n\line over $87,500, but not over $122,500 \n\line \n\line
\n\line
\n\line
\n\line
\n\line
116.15 \n\line 116.16 \n\line \n\line
\n\line
\n\line
Over $122,500, but not \n\line over $157,500 \n\line \n\line
\n\line
\n\line
$14,175 plus 27 percent of the amount \n\line over $122,500, but not over $157,500 \n\line \n\line
\n\line
\n\line
\n\line
\n\line
116.17 \n\line 116.18 \n\line \n\line
\n\line
\n\line
Over $157,500 \n\line \n\line
\n\line
\n\line
$23,625 plus 36 percent of the \n\line amount over $157,500 \n\line \n\line
\n\line
\n\line
\n\line
116.19(b) On or before April 1, 2016, the commissioner shall estimate the total amount of \n\line 116.20revenue, including interest and penalties, that will be collected for fiscal year 2016 from \n\line 116.21taxes imposed under this chapter. If the amount estimated by the commissioner equals \n\line 116.22or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the \n\line 116.23rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a \n\line 116.24notice to that effect in the State Register and notify each taxpayer by June 1, 2016. If the \n\line 116.25rates under this section apply, the combined net receipts of an organization are subject to a \n\line 116.26tax computed according to the following schedule: \n\line \n\line
Over $122,500, but not \n\line over $157,500 \n\line \n\line
\n\line
\n\line
$13,388 plus 25.5 percent of the \n\line amount over $122,500, but not over \n\line $157,500 \n\line \n\line
\n\line
\n\line
\n\line
\n\line
116.36 \n\line 116.37 \n\line \n\line
\n\line
\n\line
Over $157,500 \n\line \n\line
\n\line
\n\line
$22,313 plus 34 percent of the \n\line amount over $157,500 \n\line \n\line
\n\line
\n\line
\n\line
116.38(c) Gross receipts derived from sports-themed tipboards are exempt from taxation \n\line 116.39under this section. For purposes of this paragraph, a sports-themed tipboard means a \n\line 116.40sports-themed tipboard as defined in section \n\line 349.12, subdivision 34, under which the \n\line 116.41winning numbers are determined by the numerical outcome of a professional sporting event. \n\line 117.1{\ul (d) Paper pull-tabs sold at a bingo hall as defined in section 349.12, subdivision 4a, } \n\line 117.2{\ul are exempt from taxation under this subdivision.} \n\line 117.3{\ul EFFECTIVE DATE.}{\ul This section is effective July 1, 2016.} \n\line \n\line 117.4 Sec. 19. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision \n\line 117.5to read: \n\line 117.6 {\ul Subd. 6a.} {\ul Bulk nicotine.} {\ul "Bulk nicotine" means any vapor product that contains a } \n\line 117.7{\ul solution having a concentration of 50 milligrams of nicotine per milliliter or greater.} \n\line 117.8{\ul EFFECTIVE DATE.}{\ul This section is effective January 1, 2017.} \n\line \n\line 117.9 Sec. 20. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision \n\line 117.10to read: \n\line 117.11 {\ul Subd. 6b.} {\ul Consumable material.} {\ul "Consumable material" means any vapor product } \n\line 117.12{\ul that contains nicotine in a solution having a concentration of less than 50 milligrams } \n\line 117.13{\ul of nicotine per milliliter.} \n\line 117.14{\ul EFFECTIVE DATE.}{\ul This section is effective January 1, 2017.} \n\line \n\line 117.15 Sec. 21. Minnesota Statutes 2014, section 297F.01, subdivision 19, is amended to read: \n\line 117.16 Subd. 19. Tobacco products. (a) "Tobacco products" means any product \n\line 117.17containing, made, or derived from tobacco that is intended for human consumption, \n\line 117.18whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by \n\line 117.19any other means, or any component, part, or accessory of a tobacco product, including, \n\line 117.20but not limited to, cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, \n\line 117.21ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist \n\line 117.22tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and \n\line 117.23sweepings of tobacco,{\ul vapor products,} and other kinds and forms of tobacco; but does \n\line 117.24not include cigarettes as defined in this section. Tobacco products excludes any tobacco \n\line 117.25product that has been approved by the United States Food and Drug Administration for \n\line 117.26sale as a tobacco cessation product, as a tobacco dependence product, or for other medical \n\line 117.27purposes, and is being marketed and sold solely for such an approved purpose. \n\line 117.28(b) Except for the imposition of tax under section \n\line 297F.05, subdivisions 3 and 4, \n\line 117.29tobacco products includes a premium cigar, as defined in subdivision 13a. \n\line 117.30{\ul EFFECTIVE DATE.}{\ul This section is effective January 1, 2017.} \n\line \n\line 118.1 Sec. 22. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision \n\line 118.2to read: \n\line 118.3 {\ul Subd. 24.} {\ul Vapor products.} {\ul "Vapor products" means any noncombustible product } \n\line 118.4{\ul that employs a heating element, power source, electronic circuit, or other electronic, } \n\line 118.5{\ul chemical, or mechanical means, regardless of shape or size, that can be used to produce } \n\line 118.6{\ul vapor from nicotine in a solution or other form. Vapor products includes any electronic } \n\line 118.7{\ul cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device } \n\line 118.8{\ul and any vapor cartridge or other container of bulk nicotine or consumable material in } \n\line 118.9{\ul a solution or other form that is intended to be used with or in an electronic cigarette, } \n\line 118.10{\ul electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.} \n\line 118.11{\ul EFFECTIVE DATE.}{\ul This section is effective January 1, 2017.} \n\line \n\line 118.12 Sec. 23. Minnesota Statutes 2014, section 297F.05, subdivision 1, is amended to read: \n\line 118.13 Subdivision 1. Rates; cigarettes. A tax is imposed upon the sale of cigarettes in this \n\line 118.14state, upon having cigarettes in possession in this state with intent to sell, upon any person \n\line 118.15engaged in business as a distributor, and upon the use or storage by consumers, at the rate \n\line 118.16of {\strike 141.5}{\ul 150} mills, or \n\line {\strike 14.15}{\ul 15} cents, on each cigarette. \n\line 118.17{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 118.18 Sec. 24. Minnesota Statutes 2014, section 297F.05, subdivision 3, is amended to read: \n\line 118.19 Subd. 3. Rates; tobacco products. (a) Except as provided in {\strike subdivision } \n\line 118.20{\ul subdivisions} 3a{\ul and 3b}, a tax is imposed upon all tobacco products in this state and upon \n\line 118.21any person engaged in business as a distributor, at the rate of 95 percent of the wholesale \n\line 118.22sales price of the tobacco products. The tax is imposed at the time the distributor: \n\line 118.23(1) brings, or causes to be brought, into this state from outside the state tobacco \n\line 118.24products for sale; \n\line 118.25(2) makes, manufactures, or fabricates tobacco products in this state for sale in \n\line 118.26this state; or \n\line 118.27(3) ships or transports tobacco products to retailers in this state, to be sold by those \n\line 118.28retailers. \n\line 118.29(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a \n\line 118.30pack of 20 cigarettes weighing not more than three pounds per thousand, as established \n\line 118.31under subdivision 1, is imposed on each container of moist snuff. \n\line 118.32For purposes of this subdivision, a "container" means the smallest consumer-size can, \n\line 118.33package, or other container that is marketed or packaged by the manufacturer, distributor, \n\line 119.1or retailer for separate sale to a retail purchaser. When more than one container is \n\line 119.2packaged together, each container is subject to tax. \n\line 119.3{\ul EFFECTIVE DATE.}{\ul This section is effective January 1, 2017.} \n\line \n\line 119.4 Sec. 25. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision \n\line 119.5to read: \n\line 119.6 {\ul Subd. 3b.} {\ul Rates; vapor products.} {\ul (a) A tax is imposed upon all vapor products in } \n\line 119.7{\ul this state and upon any person engaged in business as a tobacco product distributor. The } \n\line 119.8{\ul tax imposed under this subdivision is imposed at the time the tobacco products distributor:} \n\line 119.9{\ul (1) brings, or causes to be brought, into this state vapor products for sale;} \n\line 119.10{\ul (2) makes, manufactures, or fabricates vapor products in this state, not otherwise } \n\line 119.11{\ul taxed under this subdivision, for sale in this state; or} \n\line 119.12{\ul (3) ships or transports vapor products to retailers in this state to be sold by those } \n\line 119.13{\ul retailers.} \n\line 119.14{\ul (b) For vapor products that contain bulk nicotine, the rate of tax is 300 percent of the } \n\line 119.15{\ul wholesale sales price of the vapor product.} \n\line 119.16{\ul (c) For vapor products that contain consumable material, the rate of tax is 45 percent } \n\line 119.17{\ul of the wholesale sales price of the vapor product.} \n\line 119.18{\ul EFFECTIVE DATE.}{\ul This section is effective January 1, 2017.} \n\line \n\line 119.19 Sec. 26. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision \n\line 119.20to read: \n\line 119.21 {\ul Subd. 4b.} {\ul Use tax; vapor products.} {\ul A tax is imposed upon the use or storage by } \n\line 119.22{\ul consumers of all vapor products in this state, and upon such consumers, at the rate of 300 } \n\line 119.23{\ul percent of the wholesale sales price of a vapor product containing bulk nicotine, and 45 } \n\line 119.24{\ul percent of the wholesale sales price of a vapor product containing consumable material.} \n\line 119.25{\ul EFFECTIVE DATE.}{\ul This section is effective January 1, 2017.} \n\line \n\line 119.26 Sec. 27. Minnesota Statutes 2014, section 297H.04, subdivision 2, is amended to read: \n\line 119.27 Subd. 2. Rate. (a) Commercial generators that generate nonmixed municipal \n\line 119.28solid waste shall pay a solid waste management tax of 60 cents per noncompacted \n\line 119.29cubic yard of periodic waste collection capacity purchased by the generator, based on \n\line 119.30the size of the container for the nonmixed municipal solid waste, the actual volume, \n\line 119.31or the weight-to-volume conversion schedule in paragraph (c). However, the tax must \n\line 119.32be calculated by the waste management service provider using the same method for \n\line 120.1calculating the waste management service fee so that both are calculated according to \n\line 120.2container capacity, actual volume, or weight. \n\line 120.3(b) Notwithstanding section \n\line 297H.02, a residential generator that generates \n\line 120.4nonmixed municipal solid waste shall pay a solid waste management tax in the same \n\line 120.5manner as provided in paragraph (a). \n\line 120.6(c) The weight-to-volume conversion schedule for: \n\line 120.7(1) construction debris as defined in section \n\line 115A.03, subdivision 7, is {\strike one ton } \n\line 120.8{\strike equals }\n\line {\strike 3.33}{\strike cubic yards, or $2 per ton}{\ul equal to 60 cents per cubic yard. The commissioner } \n\line 120.9{\ul of revenue, after consultation with the commissioner of the Pollution Control Agency, } \n\line 120.10{\ul shall determine and may publish by notice a conversion schedule for construction debris}; \n\line 120.11(2) industrial waste as defined in section \n\line 115A.03, subdivision 13a, is equal to \n\line 120.1260 cents per cubic yard. The commissioner of revenue after consultation with the \n\line 120.13commissioner of the Pollution Control Agency, shall determine, and may publish by \n\line 120.14notice, a conversion schedule for various industrial wastes; and \n\line 120.15(3) infectious waste as defined in section \n\line 116.76, subdivision 12, and pathological \n\line 120.16waste as defined in section \n\line 116.76, subdivision 14, is 150 pounds equals one cubic yard, or \n\line 120.1760 cents per 150 pounds. \n\line 120.18{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 120.19{\ul June 30, 2016.} \n\line \n\line 120.20 Sec. 28. Minnesota Statutes 2014, section 349.12, is amended by adding a subdivision \n\line 120.21to read: \n\line 120.22 {\ul Subd. 4a.} {\ul Bingo hall.} {\ul (a) "Bingo hall" means the premises on which an organization } \n\line 120.23{\ul licensed under this chapter regularly conducts bingo if:} \n\line 120.24{\ul (1) more than 50 percent of the organization's gross receipts from lawful gambling } \n\line 120.25{\ul in the prior calendar year were attributable to the conduct of bingo or the organization had } \n\line 120.26{\ul no receipts from lawful gambling in that year; or} \n\line 120.27{\ul (2) no other organization conducts lawful gambling on the premises.} \n\line 120.28{\ul (b) For purposes of this subdivision, "bingo" does not include a linked bingo game } \n\line 120.29{\ul as defined in this section.} \n\line 120.30{\ul EFFECTIVE DATE.}{\ul This section is effective July 1, 2016.} \n\line \n\line 120.31 Sec. 29. {\ul REPEALER.} \n\line 120.32{\ul (a)}{\ul Minnesota Statutes 2014, section 297F.05, subdivision 1a,}{\ul is repealed.} \n\line 120.33{\ul (b)}{\ul Minnesota Rules, part 8125.1300, subpart 3,}{\ul is repealed.} \n\line 121.1{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line
121.2ARTICLE 6 \n\line \n\line
\n\line
121.3MINERALS \n\line \n\line
\n\line 121.4 Section 1. Minnesota Statutes 2014, section 298.24, is amended by adding a \n\line 121.5subdivision to read: \n\line 121.6 {\ul Subd. 5.} {\ul TEDF; deposits redirected.} {\ul (a) For concentrates produced by a plant } \n\line 121.7{\ul subject to a reimbursement agreement dated September 9, 2008, by and among Itasca } \n\line 121.8{\ul County, Essar Global Limited, and Minnesota Steel Industries LLC, the provisions of } \n\line 121.9{\ul sections 298.227 and 298.28, subdivision 9a, do not apply to the plant's production.} \n\line 121.10{\ul (b) All amounts not deposited in the taconite economic development fund as a } \n\line 121.11{\ul result of paragraph (a) must be deposited in the Douglas J. Johnson economic protection } \n\line 121.12{\ul trust fund created under section 298.292.} \n\line 121.13{\ul (c) The provisions of this subdivision expire upon certification by the commissioner } \n\line 121.14{\ul of employment and economic development that all requirements of the reimbursement } \n\line 121.15{\ul agreement, as specified in paragraph (a), are satisfied.} \n\line 121.16{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 121.17 Sec. 2. Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read: \n\line 121.18 Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed \n\line 121.19under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid \n\line 121.20account to be distributed as provided in section \n\line 298.282. \n\line 121.21 (b) An amount must be allocated to towns or cities that is annually certified by \n\line 121.22the county auditor of a county containing a taconite tax relief area as defined in section \n\line \n\line 121.23273.134, paragraph (b)\n\line , within which there is (1) an organized township if, as of January \n\line 121.242, 1982, more than 75 percent of the assessed valuation of the township consists of iron \n\line 121.25ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation \n\line 121.26of the city consists of iron ore. \n\line 121.27 (c) The amount allocated under paragraph (b) will be the portion of a township's or \n\line 121.28city's certified levy equal to the proportion of (1) the difference between 50 percent of \n\line 121.29January 2, 1982, assessed value in the case of a township and 50 percent of the January 2, \n\line 121.301980, assessed value in the case of a city and its current assessed value to (2) the sum of \n\line 121.31its current assessed value plus the difference determined in (1), provided that the amount \n\line 121.32distributed shall not exceed $55 per capita in the case of a township or $75 per capita in \n\line 121.33the case of a city. For purposes of this limitation, population will be determined according \n\line 121.34to the 1980 decennial census conducted by the United States Bureau of the Census. If the \n\line 122.1current assessed value of the township exceeds 50 percent of the township's January 2, \n\line 122.21982, assessed value, or if the current assessed value of the city exceeds 50 percent of the \n\line 122.3city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this \n\line 122.4paragraph, "assessed value," when used in reference to years other than 1980 or 1982, \n\line 122.5means the appropriate net tax capacities multiplied by 10.2. \n\line 122.6 (d) In addition to other distributions under this subdivision, {\strike three}{\ul 3.25} cents per \n\line 122.7taxable ton for distributions in {\strike 2009}{\ul 2017 and subsequent years} must be allocated for \n\line 122.8distribution to {\ul (1) }towns that are entirely located within the taconite tax relief area defined \n\line 122.9in section \n\line 273.134, paragraph (b){\ul ; and (2) the following unorganized territories in St. } \n\line 122.10{\ul Louis County and Itasca County: 56-17; 58-22; 59-16; 59-21; 60-18; and 60-19}. For \n\line 122.11{\strike distribution in 2010 through 2014 and for distribution}{\ul distributions} in 2018 and subsequent \n\line 122.12years, the {\strike three-cent}{\ul 3.25-cent} amount must be annually increased in the same proportion \n\line 122.13as the increase in the implicit price deflator as provided in section \n\line 298.24, subdivision 1. \n\line 122.14The amount available under this paragraph {\strike will}{\ul must} be distributed to eligible towns {\ul and } \n\line 122.15{\ul eligible unorganized territories }on a per capita basis, provided that no town {\ul or unorganized } \n\line 122.16{\ul territory }may receive more than $50,000 in any year under this paragraph. Any amount of \n\line 122.17the distribution that exceeds the $50,000 limitation for a town {\ul or unorganized territory } \n\line 122.18under this paragraph must be redistributed on a per capita basis among the other eligible \n\line 122.19towns{\ul and eligible unorganized territories}, to whose distributions do not exceed $50,000. \n\line 122.20{\ul The amount available to unorganized territories in St. Louis County and Itasca County } \n\line 122.21{\ul may be held by the county and combined for public infrastructure projects for the specified } \n\line 122.22{\ul unorganized territories.} \n\line 122.23{\ul EFFECTIVE DATE.}{\ul This section is effective for distributions beginning in 2017 } \n\line 122.24{\ul and thereafter.} \n\line \n\line 122.25 Sec. 3. Minnesota Statutes 2014, section 298.28, subdivision 5, is amended to read: \n\line 122.26 Subd. 5. Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through \n\line 122.272023, and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated \n\line 122.28to counties to be distributed, based upon certification by the commissioner of revenue, \n\line 122.29under paragraphs (b) to (d). \n\line 122.30 (b) 10.525 cents per taxable ton shall be distributed to the county in which the \n\line 122.31taconite is mined or quarried or in which the concentrate is produced, less any amount \n\line 122.32which is to be distributed pursuant to paragraph (c). The apportionment formula prescribed \n\line 122.33in subdivision 2 is the basis for the distribution. \n\line 122.34 (c) {\strike If} {\ul 1.0 cent per taxable ton of the tax distributed to the counties pursuant to } \n\line 122.35{\ul paragraph (b) shall be paid to a county that received a distribution under this section } \n\line 123.1{\ul in 2000 because there was located in the county }an electric power plant owned by and \n\line 123.2providing the primary source of power for a taxpayer mining and concentrating taconite \n\line 123.3{\strike is located} in a {\ul different }county {\strike other than the county in which the mining and the } \n\line 123.4{\strike concentrating processes are conducted, one cent per taxable ton of the tax distributed to } \n\line 123.5{\strike the counties pursuant to paragraph (b) and imposed on and collected from such taxpayer } \n\line 123.6{\strike shall be paid to the county in which the power plant is located}. \n\line 123.7 (d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 \n\line 123.8cents per taxable ton for distributions beginning in 2024, shall be paid to the county from \n\line 123.9which the taconite was mined, quarried or concentrated to be deposited in the county road \n\line 123.10and bridge fund. If the mining, quarrying and concentrating, or separate steps in any of \n\line 123.11those processes are carried on in more than one county, the commissioner shall follow the \n\line 123.12apportionment formula prescribed in subdivision 2. \n\line 123.13{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 123.14 Sec. 4. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read: \n\line 123.15 Subd. 7a. Iron Range school consolidation and cooperatively operated school \n\line 123.16account. The following amounts must be allocated to the Iron Range Resources and \n\line 123.17Rehabilitation Board to be deposited in the Iron Range school consolidation and \n\line 123.18cooperatively operated school account that is hereby created: \n\line 123.19(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax \n\line 123.20imposed under section \n\line 298.24; and (ii) for distributions beginning in 2024, five cents per \n\line 123.21taxable ton of the tax imposed under section \n\line 298.24; \n\line 123.22(2) the amount as determined under section \n\line 298.17, paragraph (b), clause (3); \n\line 123.23(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax \n\line 123.24proceeds attributable to the increase in the implicit price deflator as provided in section \n\line \n\line 123.25298.24, subdivision 1\n\line , with the remaining one-third to be distributed to the Douglas J. \n\line 123.26Johnson economic protection trust fund; \n\line 123.27(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the \n\line 123.28increased tax proceeds attributable to the increase in the implicit price deflator as provided \n\line 123.29in section \n\line 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining \n\line 123.30one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and \n\line 123.31(iii) for distributions in 2017{\ul and thereafter}, an amount equal to two-thirds of the \n\line 123.32sum of the increased tax proceeds attributable to the increase in the implicit price deflator \n\line 123.33as provided in section \n\line 298.24, subdivision 1, for distribution years 2015, 2016, and \n\line 123.342017, with the remaining one-third to be distributed to the Douglas J. Johnson economic \n\line 123.35protection trust fund; and \n\line 124.1(4) any other amount as provided by law. \n\line 124.2Expenditures from this account shall be made only to provide disbursements to \n\line 124.3assist school districts with the payment of bonds that were issued for qualified school \n\line 124.4projects, or for any other school disbursement as approved by the Iron Range Resources \n\line 124.5and Rehabilitation Board. For purposes of this section, "qualified school projects" means \n\line 124.6school projects within the taconite assistance area as defined in section \n\line 273.1341, that were \n\line 124.7(1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner \n\line 124.8of education pursuant to section \n\line 123B.71. \n\line 124.9Beginning in fiscal year 2019, the disbursement to school districts for payments for \n\line 124.10bonds issued under section \n\line 123A.482, subdivision 9, must be increased each year to \n\line 124.11offset any reduction in debt service equalization aid that the school district qualifies for in \n\line 124.12that year, under section \n\line 123B.53, subdivision 6, compared with the amount the school \n\line 124.13district qualified for in fiscal year 2018. \n\line 124.14No expenditure under this section shall be made unless approved by seven members \n\line 124.15of the Iron Range Resources and Rehabilitation Board. \n\line 124.16{\ul EFFECTIVE DATE.}{\ul This section is effective for distributions beginning in 2017 } \n\line 124.17{\ul and thereafter.} \n\line \n\line
124.18ARTICLE 7 \n\line \n\line
\n\line
124.19LOCAL DEVELOPMENT \n\line \n\line
\n\line 124.20 Section 1. Minnesota Statutes 2014, section 469.1763, subdivision 1, is amended to read: \n\line 124.21 Subdivision 1. Definitions. (a) For purposes of this section, the following terms \n\line 124.22have the meanings given. \n\line 124.23(b) "Activities" means acquisition of property, clearing of land, site preparation, soils \n\line 124.24correction, removal of hazardous waste or pollution, installation of utilities, construction \n\line 124.25of public or private improvements, and other similar activities, but only to the extent that \n\line 124.26tax increment revenues may be spent for such purposes under other law. \n\line 124.27(c) "Third party" means an entity other than (1) the person receiving the benefit \n\line 124.28of assistance financed with tax increments, or (2) the municipality or the development \n\line 124.29authority or other person substantially under the control of the municipality. \n\line 124.30(d) "Revenues derived from tax increments paid by properties in the district" means \n\line 124.31only tax increment as defined in section \n\line 469.174, subdivision 25, clause (1), and does \n\line 124.32not include tax increment as defined in section \n\line 469.174, subdivision 25, clauses (2){\strike , } \n\line 124.33{\strike (3), and (4)}{\ul to (5)}. \n\line 124.34{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 125.1 Sec. 2. Minnesota Statutes 2014, section 469.1763, subdivision 2, is amended to read: \n\line 125.2 Subd. 2. Expenditures outside district. (a) For each tax increment financing \n\line 125.3district, an amount equal to at least 75 percent of the total revenue derived from tax \n\line 125.4increments paid by properties in the district must be expended on activities in the district \n\line 125.5or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities \n\line 125.6in the district or to pay, or secure payment of, debt service on credit enhanced bonds. \n\line 125.7For districts, other than redevelopment districts for which the request for certification \n\line 125.8was made after June 30, 1995, the in-district percentage for purposes of the preceding \n\line 125.9sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax \n\line 125.10increments paid by properties in the district may be expended, through a development fund \n\line 125.11or otherwise, on activities outside of the district but within the defined geographic area of \n\line 125.12the project except to pay, or secure payment of, debt service on credit enhanced bonds. \n\line 125.13For districts, other than redevelopment districts for which the request for certification was \n\line 125.14made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is \n\line 125.1520 percent. The {\strike revenue}{\ul revenues} derived from tax increments {\strike for}{\ul paid by properties in } \n\line 125.16the district that are expended on costs under section \n\line 469.176, subdivision 4h, paragraph \n\line 125.17(b), may be deducted first before calculating the percentages that must be expended within \n\line 125.18and without the district. \n\line 125.19 (b) In the case of a housing district, a housing project, as defined in section \n\line 469.174, \n\line 125.20subdivision 11\n\line , is an activity in the district. \n\line 125.21 (c) All administrative expenses are for activities outside of the district, except that \n\line 125.22if the only expenses for activities outside of the district under this subdivision are for \n\line 125.23the purposes described in paragraph (d), administrative expenses will be considered as \n\line 125.24expenditures for activities in the district. \n\line 125.25 (d) The authority may elect, in the tax increment financing plan for the district, \n\line 125.26to increase by up to ten percentage points the permitted amount of expenditures for \n\line 125.27activities located outside the geographic area of the district under paragraph (a). As \n\line 125.28permitted by section \n\line 469.176, subdivision 4k, the expenditures, including the permitted \n\line 125.29expenditures under paragraph (a), need not be made within the geographic area of the \n\line 125.30project. Expenditures that meet the requirements of this paragraph are legally permitted \n\line 125.31expenditures of the district, notwithstanding section \n\line 469.176, subdivisions 4b, 4c, and 4j. \n\line 125.32To qualify for the increase under this paragraph, the expenditures must: \n\line 125.33 (1) be used exclusively to assist housing that meets the requirement for a qualified \n\line 125.34low-income building, as that term is used in section 42 of the Internal Revenue Code; and \n\line 126.1 (2) not exceed the qualified basis of the housing, as defined under section 42(c) of \n\line 126.2the Internal Revenue Code, less the amount of any credit allowed under section 42 of \n\line 126.3the Internal Revenue Code; and \n\line 126.4 (3) be used to: \n\line 126.5 (i) acquire and prepare the site of the housing; \n\line 126.6 (ii) acquire, construct, or rehabilitate the housing; or \n\line 126.7 (iii) make public improvements directly related to the housing; or \n\line 126.8(4) be used to develop housing: \n\line 126.9(i) if the market value of the housing does not exceed the lesser of: \n\line 126.10(A) 150 percent of the average market value of single-family homes in that \n\line 126.11municipality; or \n\line 126.12(B) $200,000 for municipalities located in the metropolitan area, as defined in \n\line 126.13section \n\line 473.121, or $125,000 for all other municipalities; and \n\line 126.14(ii) if the expenditures are used to pay the cost of site acquisition, relocation, \n\line 126.15demolition of existing structures, site preparation, and pollution abatement on one or \n\line 126.16more parcels, if the parcel contains a residence containing one to four family dwelling \n\line 126.17units that has been vacant for six or more months and is in foreclosure as defined in \n\line 126.18section \n\line 325N.10, subdivision 7, but without regard to whether the residence is the owner's \n\line 126.19principal residence, and only after the redemption period has expired. \n\line 126.20 (e) For a district created within a biotechnology and health sciences industry zone \n\line 126.21as defined in Minnesota Statutes 2012, section \n\line 469.330, subdivision 6, or for an existing \n\line 126.22district located within such a zone, tax increment derived from such a district may be \n\line 126.23expended outside of the district but within the zone only for expenditures required for the \n\line 126.24construction of public infrastructure necessary to support the activities of the zone, land \n\line 126.25acquisition, and other redevelopment costs as defined in section \n\line 469.176, subdivision 4j. \n\line 126.26These expenditures are considered as expenditures for activities within the district. The \n\line 126.27authority provided by this paragraph expires for expenditures made after the later of (1) \n\line 126.28December 31, 2015, or (2) the end of the five-year period beginning on the date the district \n\line 126.29was certified, provided that date was before January 1, 2016. \n\line 126.30(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. \n\line 126.31Increments may continue to be expended under this authority after that date, if they are \n\line 126.32used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph \n\line 126.33(a), if December 31, 2016, is considered to be the last date of the five-year period after \n\line 126.34certification under that provision. \n\line 126.35{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 127.1 Sec. 3. Minnesota Statutes 2014, section 469.1763, subdivision 3, is amended to read: \n\line 127.2 Subd. 3. Five-year rule. (a) Revenues derived from tax increments {\ul paid by } \n\line 127.3{\ul properties in the district }are considered to have been expended on an activity within the \n\line 127.4district under subdivision 2 only if one of the following occurs: \n\line 127.5(1) before or within five years after certification of the district, the revenues are \n\line 127.6actually paid to a third party with respect to the activity; \n\line 127.7(2) bonds, the proceeds of which must be used to finance the activity, are issued and \n\line 127.8sold to a third party before or within five years after certification, the revenues are spent \n\line 127.9to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, \n\line 127.10reasonably expected to be spent before the end of the later of (i) the five-year period, or \n\line 127.11(ii) a reasonable temporary period within the meaning of the use of that term under section \n\line 127.12148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve \n\line 127.13or replacement fund; \n\line 127.14(3) binding contracts with a third party are entered into for performance of the \n\line 127.15activity before or within five years after certification of the district and the revenues are \n\line 127.16spent under the contractual obligation; \n\line 127.17(4) costs with respect to the activity are paid before or within five years after \n\line 127.18certification of the district and the revenues are spent to reimburse a party for payment \n\line 127.19of the costs, including interest on unreimbursed costs; or \n\line 127.20(5) expenditures are made for housing purposes as permitted by subdivision 2, \n\line 127.21paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted \n\line 127.22by subdivision 2, paragraph (e). \n\line 127.23(b) For purposes of this subdivision, bonds include subsequent refunding bonds if \n\line 127.24the original refunded bonds meet the requirements of paragraph (a), clause (2). \n\line 127.25(c) For a redevelopment district or a renewal and renovation district certified after \n\line 127.26June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) \n\line 127.27are extended to ten years after certification of the district. For a redevelopment district \n\line 127.28certified after April 20, 2009, and before June 30, 2012, the five-year periods described in \n\line 127.29paragraph (a) are extended to eight years after certification of the district. This extension is \n\line 127.30provided primarily to accommodate delays in development activities due to unanticipated \n\line 127.31economic circumstances. \n\line 127.32{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 127.33 Sec. 4. Minnesota Statutes 2014, section 469.178, subdivision 7, is amended to read: \n\line 128.1 Subd. 7. Interfund loans. {\ul (a) }The authority or municipality may advance or loan \n\line 128.2money to finance expenditures under section \n\line 469.176, subdivision 4, from its general fund \n\line 128.3or any other fund under which it has legal authority to do so. \n\line 128.4 {\ul (b) Not later than 60 days after money is transferred, advanced, or spent, whichever } \n\line 128.5{\ul is earliest,} the loan or advance must be authorized{\strike ,} by resolution of the governing body or \n\line 128.6of the authority, whichever has jurisdiction over the fund from which the advance or loan \n\line 128.7is authorized{\strike , before money is transferred, advanced, or spent, whichever is earliest}. \n\line 128.8 {\ul (c)} The resolution may generally grant to {\ul the municipality or }the authority the power \n\line 128.9to make interfund loans under one or more tax increment financing plans or for one or \n\line 128.10more districts.{\ul The resolution may be adopted before or after the adoption of the tax } \n\line 128.11{\ul increment financing plan or the creation of the tax increment financing district from which } \n\line 128.12{\ul the advance or loan is to be repaid.} \n\line 128.13 {\ul (d) } The terms and conditions for repayment of the loan must be provided in \n\line 128.14writing {\strike and}{\ul . The written terms and conditions may be in any form, but must} include, at \n\line 128.15a minimum, the principal amount, the interest rate, and maximum term.{\ul Written terms } \n\line 128.16{\ul may be modified or amended in writing by the municipality or the authority before the } \n\line 128.17{\ul latest decertification of any tax increment financing district from which the interfund loan } \n\line 128.18{\ul is to be repaid.} The maximum rate of interest permitted to be charged is limited to the \n\line 128.19greater of the rates specified under section \n\line 270C.40 or \n\line 549.09 as of the date the loan or \n\line 128.20advance is authorized, unless the written agreement states that the maximum interest rate \n\line 128.21will fluctuate as the interest rates specified under section \n\line 270C.40 or \n\line 549.09 are from time \n\line 128.22to time adjusted.{\ul Loans or advances may be structured as draw-down or line-of-credit } \n\line 128.23{\ul obligations of the lending fund.} \n\line 128.24 {\ul (e) The authority shall report in the annual report submitted pursuant to section } \n\line 128.25{\ul 469.175, subdivision 6:} \n\line 128.26 {\ul (1) the amount of any interfund loan or advance made in a calendar year; and} \n\line 128.27 {\ul (2) any amendment of an interfund loan or advance made in a calendar year.} \n\line 128.28{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment } \n\line 128.29{\ul and applies to all districts, regardless of when the request for certification was made.} \n\line \n\line 128.30 Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read: \n\line 128.31 Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment \n\line 128.32financing plan for a district, the rules under this section apply to a redevelopment district, \n\line 128.33renewal and renovation district, {\ul economic development district, }soil condition district, \n\line 128.34or a soil deficiency district established by the city or a development authority of the city \n\line 128.35in the project area. \n\line 129.1 (b) Prior to or upon the adoption of the first tax increment plan subject to the special \n\line 129.2rules under this subdivision, the city must find by resolution that parcels consisting of at \n\line 129.3least 80 percent of the acreage of the project area (excluding street and railroad right of \n\line 129.4way) are characterized by one or more of the following conditions: \n\line 129.5 (1) peat or other soils with geotechnical deficiencies that impair development of \n\line 129.6residential or commercial buildings or infrastructure; \n\line 129.7 (2) soils or terrain that requires substantial filling in order to permit the development \n\line 129.8of commercial or residential buildings or infrastructure; \n\line 129.9 (3) landfills, dumps, or similar deposits of municipal or private waste; \n\line 129.10 (4) quarries or similar resource extraction sites; \n\line 129.11 (5) floodway; and \n\line 129.12 (6) substandard buildings within the meaning of Minnesota Statutes, section \n\line \n\line 129.13469.174, subdivision 10\n\line . \n\line 129.14 (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to \n\line 129.15be characterized by the relevant condition if at least 70 percent of the area of the parcel \n\line 129.16contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is \n\line 129.17deemed to be characterized by substandard buildings if the buildings occupy at least 30 \n\line 129.18percent of the area of the parcel. \n\line 129.19 (d) {\ul The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, } \n\line 129.20{\ul is extended to nine years for any district. }The five-year rule under Minnesota Statutes, \n\line 129.21section \n\line 469.1763, subdivision 3, is extended to ten years for any district, and section \n\line \n\line 129.22469.1763, subdivision 4\n\line , does not apply to any district. \n\line 129.23 (e) Notwithstanding anything to the contrary in section \n\line 469.1763, subdivision 2, \n\line 129.24paragraph (a), not more than 80 percent of the total revenue derived from tax increments \n\line 129.25paid by properties in any district (measured over the life of the district) may be expended \n\line 129.26on activities outside the district but within the project area. \n\line 129.27 (f) For a soil deficiency district: \n\line 129.28 (1) increments may be collected through 20 years after the receipt by the authority of \n\line 129.29the first increment from the district; and \n\line 129.30 (2) except as otherwise provided in this subdivision, increments may be used only to: \n\line 129.31 (i) acquire parcels on which the improvements described in item (ii) will occur; \n\line 129.32 (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the \n\line 129.33additional cost of installing public improvements directly caused by the deficiencies; and \n\line 129.34 (iii) pay for the administrative expenses of the authority allocable to the district. \n\line 130.1 (g) Increments spent for any infrastructure costs, whether inside a district or outside \n\line 130.2a district but within the project area, are deemed to satisfy the requirements of paragraph \n\line 130.3(f) and Minnesota Statutes, section \n\line 469.176, subdivisions 4b{\ul , 4c,} and 4j. \n\line 130.4 (h) Increments from any district may not be used to pay the costs of landfill closure or \n\line 130.5public infrastructure located on the following parcels within the plat known as Burnsville \n\line 130.6Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D. \n\line 130.7 (i) The authority to approve tax increment financing plans to establish tax increment \n\line 130.8financing districts under this section expires on December 31, {\strike 2018}{\ul 2020}. \n\line 130.9{\ul EFFECTIVE DATE.}{\ul This section is effective upon approval by the governing body } \n\line 130.10{\ul of the city of Burnsville and compliance with the requirements of Minnesota Statutes, } \n\line 130.11{\ul section 645.021.} \n\line \n\line 130.12 Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter \n\line 130.13382, section 84, is amended to read: \n\line 130.14 Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT \n\line 130.15FINANCING DISTRICT; SPECIAL RULES. \n\line 130.16(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and \n\line 130.17the governing body of the city of Duluth approves the plan for the tax increment financing \n\line 130.18district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020; \n\line 130.19010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; \n\line 130.20010-2730-00100; {\ul 010-02730-00120; 010-02730-00130; 010-02730-00140; } \n\line 130.21010-2730-00160; 010-2730-00180; 010-2730-00200; 010-2730-00300; {\ul 010-02730-00320; } \n\line 130.22010-2746-01250; 010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; \n\line 130.23010-2746-1380; 010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; \n\line 130.24010-2746-01530; 010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; \n\line 130.25010-2746-01580; 010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; \n\line 130.26010-3300-04580; 010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year \n\line 130.27rule under Minnesota Statutes, section \n\line 469.1763, subdivision 3, that activities must be \n\line 130.28undertaken within a five-year period from the date of certification of the tax increment \n\line 130.29financing district, must be considered to be met if the activities are undertaken within five \n\line 130.30years after the date all qualifying parcels are delisted from the Federal Superfund list. \n\line 130.31(b) The requirements of Minnesota Statutes, section \n\line 469.1763, subdivision 4, \n\line 130.32beginning in the sixth year following certification of the district requirement, will begin \n\line 130.33in the sixth year following the date all qualifying parcels are delisted from the Federal \n\line 130.34Superfund list. \n\line 131.1(c) The action required under Minnesota Statutes, section \n\line 469.176, subdivision 6, \n\line 131.2are satisfied if the action is commenced within four years after the date all qualifying \n\line 131.3parcels are delisted from the Federal Superfund list and evidence of the action required is \n\line 131.4submitted to the county auditor by February 1 of the fifth year following the year in which \n\line 131.5all qualifying parcels are delisted from the Federal Superfund list. \n\line 131.6(d) For purposes of this section, "qualifying parcels" means United States Steel \n\line 131.7parcels listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part \n\line 131.8of the USS Site (USEPA OU 02) that are included in the tax increment financing district. \n\line 131.9(e) In addition to the reporting requirements of Minnesota Statutes, section \n\line 469.175, \n\line 131.10subdivision 5\n\line , the Seaway Port Authority of Duluth shall report the status of all parcels \n\line 131.11listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status report \n\line 131.12must show the parcel numbers, the listed or delisted status, and if delisted, the delisting date. \n\line 131.13{\ul (f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other } \n\line 131.14{\ul law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan } \n\line 131.15{\ul program before approval of the tax increment financing plan for or the establishment of } \n\line 131.16{\ul the district authorized by this section. The authority may make loans under this program } \n\line 131.17{\ul and the proceeds of the loans may be used for any permitted use of increments under } \n\line 131.18{\ul this law or Minnesota Statutes, section 469.176, for the district, and may be repaid with } \n\line 131.19{\ul increments from the district established under this section. This subdivision applies to any } \n\line 131.20{\ul action authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.} \n\line 131.21{\ul EFFECTIVE DATE.}{\ul This section is effective the day after the governing body of } \n\line 131.22{\ul the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section } \n\line 131.23{\ul 645.021, subdivision 3.} \n\line \n\line 131.24 Sec. 7. Laws 2014, chapter 308, article 6, section 9, is amended to read: \n\line 131.25 Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING \n\line 131.26DISTRICT. \n\line 131.27 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms \n\line 131.28have the meanings given them. \n\line 131.29(b) "City" means the city of Maple Grove. \n\line 131.30(c) "Project area" means {\ul all or a portion of }the area in the city commencing at a point \n\line 131.31130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of \n\line 131.32Section 23, Township 119, Range 22, Hennepin County, said point being on the easterly \n\line 131.33right-of-way line of Hemlock Lane; thence northerly along said easterly right-of-way line \n\line 131.34of Hemlock Lane to a point on the west line of the east one-half of the Southeast Quarter of \n\line 131.35section 23, thence south along said west line a distance of 1,200 feet; thence easterly to the \n\line 132.1east line of Section 23, 1,030 feet North from the southeast corner thereof; thence South \n\line 132.274 degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees \n\line 132.3West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line \n\line 132.4of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of \n\line 132.5the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795 \n\line 132.6feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of \n\line 132.7Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the \n\line 132.8Northwest Quarter of Section 24; thence West along said south line to the east right-of-way \n\line 132.9line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to \n\line 132.10the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence \n\line 132.11East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan \n\line 132.12Industrial Park 5th Addition; thence South along the east line of said Outlot A and its \n\line 132.13southerly extension to the south right-of-way line of County State-Aid Highway (CSAH) \n\line 132.14109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the \n\line 132.15Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east \n\line 132.16line to the north line of the South Half of the Northeast Quarter of Section 24; thence East \n\line 132.17along said north line to the westerly right-of-way line of Jefferson Highway North; thence \n\line 132.18southerly along the westerly right-of-way line of Jefferson Highway to the centerline of \n\line 132.19CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane \n\line 132.20North to the westerly extension of the north line of Outlot A, Park North Fourth Addition; \n\line 132.21thence easterly along the north line of Outlot A, Park North Fourth Addition to the \n\line 132.22northeast corner of said Outlot A; thence southerly along the east line of said Outlot A \n\line 132.23to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1, \n\line 132.24Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway \n\line 132.25169; thence southerly, southwesterly, westerly, and northwesterly along the westerly \n\line 132.26right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate \n\line 132.27694 to its intersection with the southerly extension of the easterly right-of-way line of \n\line 132.28Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary \n\line 132.29Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence \n\line 132.30westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning \n\line 132.31and there terminating, provided that the project area includes the rights-of-way for all \n\line 132.32present and future highway interchanges abutting the area described in this paragraph{\ul , and } \n\line 132.33{\ul may include any additional property necessary to cause the property included in the tax } \n\line 132.34{\ul increment financing district to consist of complete parcels}. \n\line 133.1(d) "Soil deficiency district" means a type of tax increment financing district \n\line 133.2consisting of a portion of the project area in which the city finds by resolution that the \n\line 133.3following conditions exist: \n\line 133.4(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in \n\line 133.5the district require substantial filling, grading, or other physical preparation for use; and \n\line 133.6(2) the estimated cost of the physical preparation under clause (1), but excluding \n\line 133.7costs directly related to roads as defined in Minnesota Statutes, section \n\line 160.01, and \n\line 133.8local improvements as described in Minnesota Statutes, sections \n\line 429.021, subdivision 1, \n\line 133.9clauses (1) to (7), (11), and (12), and \n\line 430.01, exceeds the fair market value of the land \n\line 133.10before completion of the preparation. \n\line 133.11 Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment \n\line 133.12financing plan for a district, the rules under this section apply to a redevelopment \n\line 133.13district, renewal and renovation district, soil condition district, or soil deficiency district \n\line 133.14established by the city or a development authority of the city in the project area. \n\line 133.15(b) Prior to or upon the adoption of the first tax increment plan subject to the special \n\line 133.16rules under this subdivision, the city must find by resolution that parcels consisting \n\line 133.17of at least 80 percent of the acreage of the project area, excluding street and railroad \n\line 133.18rights-of-way, are characterized by one or more of the following conditions: \n\line 133.19(1) peat or other soils with geotechnical deficiencies that impair development of \n\line 133.20commercial buildings or infrastructure; \n\line 133.21(2) soils or terrain that require substantial filling in order to permit the development \n\line 133.22of commercial buildings or infrastructure; \n\line 133.23(3) landfills, dumps, or similar deposits of municipal or private waste; \n\line 133.24(4) quarries or similar resource extraction sites; \n\line 133.25(5) floodway; and \n\line 133.26(6) substandard buildings, within the meaning of Minnesota Statutes, section \n\line \n\line 133.27469.174, subdivision 10\n\line . \n\line 133.28(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by \n\line 133.29the relevant condition if at least 70 percent of the area of the parcel contains the relevant \n\line 133.30condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by \n\line 133.31substandard buildings if substandard buildings occupy at least 30 percent of the area \n\line 133.32of the parcel. \n\line 133.33(d) The five-year rule under Minnesota Statutes, section \n\line 469.1763, subdivision 3, \n\line 133.34is extended to eight years for any district, and Minnesota Statutes, section \n\line 469.1763, \n\line 133.35subdivision 4\n\line , does not apply to any district. \n\line 134.1(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section \n\line \n\line 134.2469.1763, subdivision 2\n\line , paragraph (a), not more than 40 percent of the total revenue \n\line 134.3derived from tax increments paid by properties in any district, measured over the life of \n\line 134.4the district, may be expended on activities outside the district but within the project area. \n\line 134.5(f) For a soil deficiency district: \n\line 134.6(1) increments may be collected through 20 years after the receipt by the authority of \n\line 134.7the first increment from the district; \n\line 134.8(2) increments may be used only to: \n\line 134.9(i) acquire parcels on which the improvements described in item (ii) will occur; \n\line 134.10(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the \n\line 134.11additional cost of installing public improvements directly caused by the deficiencies; and \n\line 134.12(iii) pay for the administrative expenses of the authority allocable to the district; and \n\line 134.13(3) any parcel acquired with increments from the district must be sold at no less \n\line 134.14than their fair market value. \n\line 134.15(g) Increments spent for any infrastructure costs, whether inside a district or outside \n\line 134.16a district but within the project area, are deemed to satisfy the requirements of Minnesota \n\line 134.17Statutes, section \n\line 469.176, subdivision 4j. \n\line 134.18(h) The authority to approve tax increment financing plans to establish tax increment \n\line 134.19financing districts under this section expires June 30, 2020. \n\line 134.20{\ul (i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use } \n\line 134.21{\ul increments from a soil deficiency district to acquire parcels and for other infrastructure } \n\line 134.22{\ul costs either inside or outside of the district, but within the project area, if the acquisition or } \n\line 134.23{\ul infrastructure is for a qualified development. For purposes of this paragraph, a development } \n\line 134.24{\ul is a qualified development only if all of the following requirements are satisfied:} \n\line 134.25{\ul (1) the city finds, by resolution, that the land acquisition and infrastructure are } \n\line 134.26{\ul undertaken primarily to serve the development;} \n\line 134.27{\ul (2) the city has a binding, written commitment and adequate financial assurances } \n\line 134.28{\ul from the developer that the development will be constructed; and} \n\line 134.29{\ul (3) the development does not consist of retail trade or housing improvements.} \n\line 134.30{\ul EFFECTIVE DATE.}{\ul This section is effective upon approval by the governing } \n\line 134.31{\ul body of the city of Maple Grove and its compliance with the requirements of Minnesota } \n\line 134.32{\ul Statutes, section 645.021.} \n\line \n\line 134.33 Sec. 8. {\ul CITY OF ANOKA; TIF DISTRICT.} \n\line 134.34{\ul For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), } \n\line 134.35{\ul the city of Anoka's Greens of Anoka redevelopment tax increment financing district is } \n\line 135.1{\ul deemed to be certified on June 29, 2012, rather than its actual certification date of July 2, } \n\line 135.2{\ul 2012, and the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, } \n\line 135.3{\ul apply as if the district were certified on that date.} \n\line 135.4{\ul EFFECTIVE DATE.}{\ul This section is effective upon approval by the governing body } \n\line 135.5{\ul of the city of Anoka and upon compliance by the city with Minnesota Statutes, section } \n\line 135.6{\ul 645.021, subdivisions 2 and 3.} \n\line \n\line 135.7 Sec. 9. {\ul CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.} \n\line 135.8{\ul Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision } \n\line 135.9{\ul 3, the chief clerical officer of the city of Edina may file the city's certificate of its approval } \n\line 135.10{\ul of Laws 2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the certificate } \n\line 135.11{\ul is so filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3, } \n\line 135.12{\ul are otherwise complied with, the special law is deemed approved, and all actions taken } \n\line 135.13{\ul by the city prior to the effective date of this section in reliance on Laws 2014, chapter } \n\line 135.14{\ul 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article } \n\line 135.15{\ul 6, section 8, and this act.} \n\line 135.16{\ul EFFECTIVE DATE.}{\ul This section is effective June 30, 2016, without local approval } \n\line 135.17{\ul as an amendment to the provisions of Laws 2014, chapter 308, article 6, section 8.} \n\line \n\line 135.18 Sec. 10. {\ul CITY OF COON RAPIDS; TAX INCREMENT FINANCING.} \n\line 135.19{\ul Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision } \n\line 135.20{\ul 1b, or any other law to the contrary, the city of Coon Rapids may collect tax increment } \n\line 135.21{\ul from District 6-1 Port Riverwalk through December 31, 2038.} \n\line 135.22{\ul EFFECTIVE DATE.}{\ul This section is effective upon compliance by the governing } \n\line 135.23{\ul bodies of the city of Coon Rapids, Anoka County, and Independent School District No. } \n\line 135.24{\ul 11 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and } \n\line 135.25{\ul 645.021, subdivision 3.} \n\line \n\line 135.26 Sec. 11. {\ul CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING.} \n\line 135.27{\ul The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that } \n\line 135.28{\ul activities must be undertaken within a five-year period from the date of certification of } \n\line 135.29{\ul a tax increment financing district, is considered to be met for Tax Increment Financing } \n\line 135.30{\ul District No. 1-12 (Gateway North), administered by the Cottage Grove Economic } \n\line 135.31{\ul Development Authority, if the activities are undertaken prior to January 1, 2017.} \n\line 136.1{\ul EFFECTIVE DATE.}{\ul This section is effective upon compliance by the chief clerical } \n\line 136.2{\ul officer of the governing body of the city of Cottage Grove with the requirements of } \n\line 136.3{\ul Minnesota Statutes, section 645.021, subdivisions 2 and 3.} \n\line \n\line 136.4 Sec. 12. {\ul CITY OF NORTHFIELD; TAX INCREMENT FINANCING.} \n\line 136.5{\ul The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that } \n\line 136.6{\ul activities must be undertaken within a five-year period from the date of certification of a } \n\line 136.7{\ul tax increment financing district, is considered to be met for the Riverfront Tax Increment } \n\line 136.8{\ul Financing District in the city of Northfield, if the activities are undertaken prior to July } \n\line 136.9{\ul 12, 2017.} \n\line 136.10{\ul EFFECTIVE DATE.}{\ul This section is effective the day after the governing body of } \n\line 136.11{\ul the city of Northfield and its chief clerical officer comply with Minnesota Statutes, section } \n\line 136.12{\ul 645.021, subdivisions 2 and 3.} \n\line \n\line 136.13 Sec. 13. {\ul CITY OF RICHFIELD; EXTENSION OF DISTRICT.} \n\line 136.14{\ul Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other } \n\line 136.15{\ul law to the contrary, the city of Richfield and the Housing and Redevelopment Authority in } \n\line 136.16{\ul and for the city of Richfield may elect to extend the duration limit of the redevelopment } \n\line 136.17{\ul tax increment financing district known as the Cedar Avenue Tax Increment Financing } \n\line 136.18{\ul District established by Laws 2005, chapter 152, article 2, section 25, by ten years.} \n\line 136.19{\ul EFFECTIVE DATE.}{\ul This section is effective upon compliance by the city } \n\line 136.20{\ul of Richfield, Hennepin County, and Independent School District No. 280 with the } \n\line 136.21{\ul requirements of Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, } \n\line 136.22{\ul subdivisions 2 and 3.} \n\line \n\line 136.23 Sec. 14. {\ul CITY OF ST. PAUL; TIF AUTHORITY.} \n\line 136.24{\ul (a) For purposes of computing the duration limits under Minnesota Statutes, section } \n\line 136.25{\ul 469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul } \n\line 136.26{\ul may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing } \n\line 136.27{\ul District. This authority is limited to the first four years of increment or increments derived } \n\line 136.28{\ul from taxes payable in 2023, whichever occurs first.} \n\line 136.29{\ul (b) If the city elects to waive receipt of increment under paragraph (a), for purposes } \n\line 136.30{\ul of applying any limits based on when the district was certified under Minnesota Statutes, } \n\line 136.31{\ul section 469.176, subdivision 6, or 469.1763, the date of certification for the district is } \n\line 137.1{\ul deemed to be January 2 of the property tax assessment year for which increment is first } \n\line 137.2{\ul received under the waiver.} \n\line 137.3{\ul EFFECTIVE DATE.}{\ul This section is effective July 1, 2016, without local approval } \n\line 137.4{\ul under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).} \n\line \n\line
137.5ARTICLE 8 \n\line \n\line
\n\line
137.6PUBLIC FINANCE \n\line \n\line
\n\line 137.7 Section 1. Minnesota Statutes 2014, section 366.095, subdivision 1, is amended to read: \n\line 137.8 Subdivision 1. Certificates of indebtedness. The town board may issue certificates \n\line 137.9of indebtedness within the debt limits for a town purpose otherwise authorized by law. \n\line 137.10The certificates shall be payable in not more than ten years and be issued on the terms and \n\line 137.11in the manner as the board may determine{\ul , provided that notes issued for projects that } \n\line 137.12{\ul eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), } \n\line 137.13{\ul shall be payable in not more than 20 years}. If the amount of the certificates to be issued \n\line 137.14exceeds 0.25 percent of the estimated market value of the town, they shall not be issued \n\line 137.15for at least ten days after publication in a newspaper of general circulation in the town of \n\line 137.16the board's resolution determining to issue them. If within that time, a petition asking for \n\line 137.17an election on the proposition signed by voters equal to ten percent of the number of voters \n\line 137.18at the last regular town election is filed with the clerk, the certificates shall not be issued \n\line 137.19until their issuance has been approved by a majority of the votes cast on the question at \n\line 137.20a regular or special election. A tax levy shall be made to pay the principal and interest \n\line 137.21on the certificates as in the case of bonds. \n\line \n\line 137.22 Sec. 2. Minnesota Statutes 2014, section 383B.117, subdivision 2, is amended to read: \n\line 137.23 Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and \n\line 137.24without public referendum, issue capital notes within existing debt limits for the purpose \n\line 137.25of purchasing ambulance and other medical equipment, road construction or maintenance \n\line 137.26equipment, public safety equipment and other capital equipment having an expected \n\line 137.27useful life at least equal to the term of the notes issued. The notes shall be payable \n\line 137.28in not more than ten years and shall be issued on terms and in a manner as the board \n\line 137.29determines{\ul , provided that notes issued for projects that eliminate R-22, as such projects } \n\line 137.30{\ul are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not more } \n\line 137.31{\ul than 20 years}. The total principal amount of the notes issued for any fiscal year shall not \n\line 137.32exceed one percent of the total annual budget for that year and shall be issued solely for \n\line 137.33the purchases authorized in this subdivision. A tax levy shall be made for the payment \n\line 137.34of the principal and interest on such notes as in the case of bonds. For purposes of this \n\line 138.1subdivision, "equipment" includes computer hardware and software, whether bundled with \n\line 138.2machinery or equipment or unbundled. For purposes of this subdivision, the term "medical \n\line 138.3equipment" includes computer hardware and software and other intellectual property for \n\line 138.4use in medical diagnosis, medical procedures, research, record keeping, billing, and other \n\line 138.5hospital applications, together with application development services and training related \n\line 138.6to the use of the computer hardware and software and other intellectual property, all \n\line 138.7without regard to their useful life. For purposes of determining the amount of capital notes \n\line 138.8which the county may issue in any year, the budget of the county and Hennepin Healthcare \n\line 138.9System, Inc. shall be combined and the notes issuable under this subdivision shall be in \n\line 138.10addition to obligations issuable under section \n\line 373.01, subdivision 3. \n\line \n\line 138.11 Sec. 3. Minnesota Statutes 2014, section 410.32, is amended to read: \n\line 138.12410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT. \n\line 138.13 (a) Notwithstanding any contrary provision of other law or charter, a home rule \n\line 138.14charter city may, by resolution and without public referendum, issue capital notes subject \n\line 138.15to the city debt limit to purchase capital equipment. \n\line 138.16 (b) For purposes of this section, "capital equipment" means: \n\line 138.17 (1) public safety equipment, ambulance and other medical equipment, road \n\line 138.18construction and maintenance equipment, and other capital equipment; and \n\line 138.19 (2) computer hardware and software, whether bundled with machinery or equipment \n\line 138.20or unbundled, together with application development services and training related to the \n\line 138.21use of the computer hardware and software. \n\line 138.22 (c) The equipment or software must have an expected useful life at least as long \n\line 138.23as the term of the notes. \n\line 138.24 (d) The notes shall be payable in not more than ten years and be issued on terms and \n\line 138.25in the manner the city determines{\ul , provided that notes issued for projects that eliminate } \n\line 138.26{\ul R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be } \n\line 138.27{\ul payable in not more than 20 years}. The total principal amount of the capital notes issued \n\line 138.28in a fiscal year shall not exceed 0.03 percent of the estimated market value of taxable \n\line 138.29property in the city for that year. \n\line 138.30 (e) A tax levy shall be made for the payment of the principal and interest on the \n\line 138.31notes, in accordance with section \n\line 475.61, as in the case of bonds. \n\line 138.32 (f) Notes issued under this section shall require an affirmative vote of two-thirds of \n\line 138.33the governing body of the city. \n\line 139.1 (g) Notwithstanding a contrary provision of other law or charter, a home rule charter \n\line 139.2city may also issue capital notes subject to its debt limit in the manner and subject to the \n\line 139.3limitations applicable to statutory cities pursuant to section \n\line 412.301. \n\line \n\line 139.4 Sec. 4. Minnesota Statutes 2014, section 412.301, is amended to read: \n\line 139.5412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT. \n\line 139.6 (a) The council may issue certificates of indebtedness or capital notes subject to the \n\line 139.7city debt limits to purchase capital equipment. \n\line 139.8 (b) For purposes of this section, "capital equipment" means: \n\line 139.9 (1) public safety equipment, ambulance and other medical equipment, road \n\line 139.10construction and maintenance equipment, and other capital equipment; and \n\line 139.11 (2) computer hardware and software, whether bundled with machinery or equipment \n\line 139.12or unbundled, together with application development services and training related to the \n\line 139.13use of the computer hardware or software. \n\line 139.14 (c) The equipment or software must have an expected useful life at least as long as \n\line 139.15the terms of the certificates or notes. \n\line 139.16 (d) Such certificates or notes shall be payable in not more than ten years and shall \n\line 139.17be issued on such terms and in such manner as the council may determine{\ul , provided, } \n\line 139.18{\ul however, that notes issued for projects that eliminate R-22, as such projects are defined in } \n\line 139.19{\ul section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years}. \n\line 139.20 (e) If the amount of the certificates or notes to be issued to finance any such purchase \n\line 139.21exceeds 0.25 percent of the estimated market value of taxable property in the city, they \n\line 139.22shall not be issued for at least ten days after publication in the official newspaper of \n\line 139.23a council resolution determining to issue them; and if before the end of that time, a \n\line 139.24petition asking for an election on the proposition signed by voters equal to ten percent \n\line 139.25of the number of voters at the last regular municipal election is filed with the clerk, such \n\line 139.26certificates or notes shall not be issued until the proposition of their issuance has been \n\line 139.27approved by a majority of the votes cast on the question at a regular or special election. \n\line 139.28 (f) A tax levy shall be made for the payment of the principal and interest on such \n\line 139.29certificates or notes, in accordance with section \n\line 475.61, as in the case of bonds. \n\line \n\line 139.30 Sec. 5. Minnesota Statutes 2014, section 469.034, subdivision 2, is amended to read: \n\line 139.31 Subd. 2. General obligation revenue bonds. (a) An authority may pledge the \n\line 139.32general obligation of the general jurisdiction governmental unit as additional security for \n\line 139.33bonds payable from income or revenues of the project or the authority. The authority \n\line 139.34must find that the pledged revenues will equal or exceed 110 percent of the principal and \n\line 140.1interest due on the bonds for each year. The proceeds of the bonds must be used for a \n\line 140.2qualified housing development project or projects. The obligations must be issued and \n\line 140.3sold in the manner and following the procedures provided by chapter 475, except the \n\line 140.4obligations are not subject to approval by the electors, and the maturities may extend to \n\line 140.5not more than 35 years for obligations sold to finance housing for the elderly and 40 years \n\line 140.6for other obligations issued under this subdivision. The authority is the municipality for \n\line 140.7purposes of chapter 475. \n\line 140.8 (b) The principal amount of the issue must be approved by the governing body of \n\line 140.9the general jurisdiction governmental unit whose general obligation is pledged. Public \n\line 140.10hearings must be held on issuance of the obligations by both the authority and the general \n\line 140.11jurisdiction governmental unit. The hearings must be held at least 15 days, but not more \n\line 140.12than 120 days, before the sale of the obligations. \n\line 140.13 (c) The maximum amount of general obligation bonds that may be issued and \n\line 140.14outstanding under this section equals the greater of (1) one-half of one percent of the \n\line 140.15estimated market value of the general jurisdiction governmental unit whose general \n\line 140.16obligation is pledged, or (2) {\strike $3,000,000}{\ul $5,000,000}. In the case of county or multicounty \n\line 140.17general obligation bonds, the outstanding general obligation bonds of all cities in the \n\line 140.18county or counties issued under this subdivision must be added in calculating the limit \n\line 140.19under clause (1). \n\line 140.20 (d) "General jurisdiction governmental unit" means the city in which the housing \n\line 140.21development project is located. In the case of a county or multicounty authority, the \n\line 140.22county or counties may act as the general jurisdiction governmental unit. In the case of \n\line 140.23a multicounty authority, the pledge of the general obligation is a pledge of a tax on the \n\line 140.24taxable property in each of the counties. \n\line 140.25 (e) "Qualified housing development project" means a housing development project \n\line 140.26providing housing either for the elderly or for individuals and families with incomes not \n\line 140.27greater than 80 percent of the median family income as estimated by the United States \n\line 140.28Department of Housing and Urban Development for the standard metropolitan statistical \n\line 140.29area or the nonmetropolitan county in which the project is located. The project must be \n\line 140.30owned for the term of the bonds either by the authority or by a limited partnership or other \n\line 140.31entity in which the authority or another entity under the sole control of the authority is \n\line 140.32the sole general partner and the partnership or other entity must receive (1) an allocation \n\line 140.33from the Department of Management and Budget or an entitlement issuer of tax-exempt \n\line 140.34bonding authority for the project and a preliminary determination by the Minnesota \n\line 140.35Housing Finance Agency or the applicable suballocator of tax credits that the project \n\line 140.36will qualify for four percent low-income housing tax credits or (2) a reservation of nine \n\line 141.1percent low-income housing tax credits from the Minnesota Housing Finance Agency or a \n\line 141.2suballocator of tax credits for the project. A qualified housing development project may \n\line 141.3admit nonelderly individuals and families with higher incomes if: \n\line 141.4 (1) three years have passed since initial occupancy; \n\line 141.5 (2) the authority finds the project is experiencing unanticipated vacancies resulting in \n\line 141.6insufficient revenues, because of changes in population or other unforeseen circumstances \n\line 141.7that occurred after the initial finding of adequate revenues; and \n\line 141.8 (3) the authority finds a tax levy or payment from general assets of the general \n\line 141.9jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher \n\line 141.10income individuals or families are not admitted. \n\line 141.11 (f) The authority may issue bonds to refund bonds issued under this subdivision in \n\line 141.12accordance with section \n\line 475.67. The finding of the adequacy of pledged revenues required \n\line 141.13by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the \n\line 141.14issuance of refunding bonds. This paragraph applies to refunding bonds issued on and \n\line 141.15after July 1, 1992. \n\line \n\line 141.16 Sec. 6. Minnesota Statutes 2014, section 469.101, subdivision 1, is amended to read: \n\line 141.17 Subdivision 1. Establishment. An economic development authority may create \n\line 141.18and define the boundaries of economic development districts at any place or places within \n\line 141.19the city, except that the district boundaries must be contiguous, and may use the powers \n\line 141.20granted in sections \n\line 469.090 to \n\line 469.108 to carry out its purposes. First the authority must \n\line 141.21hold a public hearing on the matter. At least ten days before the hearing, the authority \n\line 141.22shall publish notice of the hearing in a {\strike daily} newspaper of general circulation in the city. \n\line 141.23Also, the authority shall find that an economic development district is proper and desirable \n\line 141.24to establish and develop within the city. \n\line \n\line 141.25 Sec. 7. Minnesota Statutes 2014, section 473.39, is amended by adding a subdivision \n\line 141.26to read: \n\line 141.27 {\ul Subd. 1u.} {\ul Obligations.} {\ul (a) In addition to other authority in this section, the council } \n\line 141.28{\ul may issue certificates of indebtedness, bonds, or other obligations under this section in an } \n\line 141.29{\ul amount not exceeding $82,100,000 for capital expenditures as prescribed in the council's } \n\line 141.30{\ul transit capital improvement program and for related costs, including the costs of issuance } \n\line 141.31{\ul and sale of the obligations. Of this authorization, after July 1, 2016, the council may } \n\line 141.32{\ul issue certificates of indebtedness, bonds, or other obligations in an amount not exceeding } \n\line 141.33{\ul $40,100,000, and after July 1, 2017, the council may issue certificates of indebtedness, } \n\line 141.34{\ul bonds, or other obligations in an additional amount not exceeding $42,000,000.} \n\line 142.1{\ul (b) This section applies in the counties of Anoka, Carver, Dakota, Hennepin, } \n\line 142.2{\ul Ramsey, Scott, and Washington.} \n\line 142.3{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 142.4 Sec. 8. Minnesota Statutes 2014, section 475.58, subdivision 3b, is amended to read: \n\line 142.5 Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may, \n\line 142.6without regard to the election requirement under subdivision 1, issue and sell obligations \n\line 142.7for street reconstruction or bituminous overlays, if the following conditions are met: \n\line 142.8 (1) the streets are reconstructed or overlaid under a street reconstruction or overlay \n\line 142.9plan that describes the street reconstruction or overlay to be financed, the estimated costs, \n\line 142.10and any planned reconstruction or overlay of other streets in the municipality over the next \n\line 142.11five years, and the plan and issuance of the obligations has been approved by a vote of \n\line 142.12{\strike all}{\ul a majority} of the members of the governing body present at the meeting following a \n\line 142.13public hearing for which notice has been published in the official newspaper at least ten \n\line 142.14days but not more than 28 days prior to the hearing; and \n\line 142.15 (2) if a petition requesting a vote on the issuance is signed by voters equal to \n\line 142.16five percent of the votes cast in the last municipal general election and is filed with the \n\line 142.17municipal clerk within 30 days of the public hearing, the municipality may issue the bonds \n\line 142.18only after obtaining the approval of a majority of the voters voting on the question of the \n\line 142.19issuance of the obligations. If the municipality elects not to submit the question to the \n\line 142.20voters, the municipality shall not propose the issuance of bonds under this section for the \n\line 142.21same purpose and in the same amount for a period of 365 days from the date of receipt \n\line 142.22of the petition. If the question of issuing the bonds is submitted and not approved by the \n\line 142.23voters, the provisions of section \n\line 475.58, subdivision 1a, shall apply. \n\line 142.24 (b) Obligations issued under this subdivision are subject to the debt limit of the \n\line 142.25municipality and are not excluded from net debt under section \n\line 475.51, subdivision 4. \n\line 142.26 (c) For purposes of this subdivision, street reconstruction and bituminous overlays \n\line 142.27includes utility replacement and relocation and other activities incidental to the street \n\line 142.28reconstruction, turn lanes and other improvements having a substantial public safety \n\line 142.29function, realignments, other modifications to intersect with state and county roads, and \n\line 142.30the local share of state and county road projects. For purposes of this subdivision, "street \n\line 142.31reconstruction" includes expenditures for street reconstruction that have been incurred \n\line 142.32by a municipality before approval of a street reconstruction plan, if such expenditures \n\line 142.33are included in a street reconstruction plan approved on or before the date of the public \n\line 142.34hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures. \n\line 143.1 (d) Except in the case of turn lanes, safety improvements, realignments, intersection \n\line 143.2modifications, and the local share of state and county road projects, street reconstruction \n\line 143.3and bituminous overlays does not include the portion of project cost allocable to widening \n\line 143.4a street or adding curbs and gutters where none previously existed. \n\line \n\line 143.5 Sec. 9. Minnesota Statutes 2014, section 475.60, subdivision 2, is amended to read: \n\line 143.6 Subd. 2. Requirements waived. The requirements as to public sale shall not \n\line 143.7apply to: \n\line 143.8(1) obligations issued under the provisions of a home rule charter or of a law \n\line 143.9specifically authorizing a different method of sale, or authorizing them to be issued in such \n\line 143.10manner or on such terms and conditions as the governing body may determine; \n\line 143.11(2) obligations sold by an issuer in an amount not exceeding the total sum of \n\line 143.12$1,200,000 in any 12-month period; \n\line 143.13(3) obligations issued by a governing body other than a school board in anticipation \n\line 143.14of the collection of taxes or other revenues appropriated for expenditure in a single year, if \n\line 143.15sold in accordance with the most favorable of two or more proposals solicited privately; \n\line 143.16(4) obligations sold to any board, department, or agency of the United States of \n\line 143.17America or of the state of Minnesota, in accordance with rules or regulations promulgated \n\line 143.18by such board, department, or agency; \n\line 143.19(5) obligations issued to fund pension and retirement fund liabilities under section \n\line \n\line 143.20475.52, subdivision 6\n\line , obligations issued with tender options under section \n\line 475.54, \n\line 143.21subdivision 5a\n\line , crossover refunding obligations referred to in section \n\line 475.67, subdivision \n\line 143.2213\n\line , and any issue of obligations comprised in whole or in part of obligations bearing \n\line 143.23interest at a rate or rates which vary periodically referred to in section \n\line 475.56; \n\line 143.24(6) obligations to be issued for a purpose, in a manner, and upon terms and \n\line 143.25conditions authorized by law, if the governing body of the municipality, on the advice of \n\line 143.26bond counsel or special tax counsel, determines that interest on the obligations cannot be \n\line 143.27represented to be excluded from gross income for purposes of federal income taxation; \n\line 143.28(7) obligations issued in the form of an installment purchase contract, lease purchase \n\line 143.29agreement, or other similar agreement; \n\line 143.30(8) obligations sold under a bond reinvestment program; and \n\line 143.31(9) if the municipality has retained an independent {\strike financial}{\ul municipal} advisor, \n\line 143.32obligations which the governing body determines shall be sold by private negotiation. \n\line \n\line
144.1ARTICLE 9 \n\line \n\line
\n\line
144.2IRON RANGE RESOURCES AND REHABILITATION \n\line \n\line
\n\line 144.3 Section 1. Minnesota Statutes 2014, section 15.38, subdivision 7, is amended to read: \n\line 144.4 Subd. 7. Iron Range resources and rehabilitation {\strike Board}. {\ul After seeking } \n\line 144.5{\ul a recommendation from the Iron Range Resources and Rehabilitation Board, }the \n\line 144.6{\ul commissioner of }Iron Range resources and rehabilitation {\strike Board} may purchase insurance {\strike it } \n\line 144.7{\strike considers}{\ul the commissioner deems} necessary and appropriate to insure facilities operated \n\line 144.8by the board. \n\line \n\line 144.9 Sec. 2. Minnesota Statutes 2014, section 116J.424, is amended to read: \n\line 144.10116J.424 IRON RANGE RESOURCES AND REHABILITATION {\strike BOARD} \n\line 144.11CONTRIBUTION. \n\line 144.12The commissioner of {\strike the} Iron Range resources and rehabilitation {\strike Board with } \n\line 144.13{\strike approval by the board,} shall provide an equal match for any loan or equity investment \n\line 144.14made for a facility located in the tax relief area defined in section \n\line 273.134, paragraph (b), \n\line 144.15by the Minnesota minerals 21st century fund created by section \n\line 116J.423. The match may \n\line 144.16be in the form of a loan or equity investment, notwithstanding whether the fund makes \n\line 144.17a loan or equity investment. The state shall not acquire an equity interest because of an \n\line 144.18equity investment or loan {\strike by the board}{\ul under this section} and the {\strike board at its sole discretion}{\ul } \n\line 144.19{\ul commissioner, after consultation with the Iron Range Resources and Rehabilitation Board,} \n\line 144.20shall {\ul have the sole discretion to }decide what interest {\strike it}{\ul the board} acquires in a project. The \n\line 144.21commissioner of employment and economic development may require a commitment \n\line 144.22from the {\strike board}{\ul commissioner} to make the match prior to disbursing money from the fund. \n\line \n\line 144.23 Sec. 3. Minnesota Statutes 2014, section 216B.161, subdivision 1, is amended to read: \n\line 144.24 Subdivision 1. Definitions. (a) For purposes of this section, the following terms \n\line 144.25have the meanings given them in this subdivision. \n\line 144.26(b) "Area development rate" means a rate schedule established by a utility that \n\line 144.27provides customers within an area development zone service under a base utility rate \n\line 144.28schedule, except that charges may be reduced from the base rate as agreed upon by the \n\line 144.29utility and the customer consistent with this section. \n\line 144.30(c) "Area development zone" means a contiguous or noncontiguous area designated \n\line 144.31by an authority or municipality for development or redevelopment and within which one \n\line 144.32of the following conditions exists: \n\line 144.33(1) obsolete buildings not suitable for improvement or conversion or other identified \n\line 144.34hazards to the health, safety, and general well-being of the community; \n\line 145.1(2) buildings in need of substantial rehabilitation or in substandard condition; or \n\line 145.2(3) low values and damaged investments. \n\line 145.3(d) "Authority" means a rural development financing authority established under \n\line 145.4sections \n\line 469.142 to \n\line 469.151; a housing and redevelopment authority established under \n\line 145.5sections \n\line 469.001 to \n\line 469.047; a port authority established under sections \n\line 469.048 to \n\line \n\line 145.6469.068\n\line ; an economic development authority established under sections \n\line 469.090 \n\line 145.7to \n\line 469.108; a redevelopment agency as defined in sections \n\line 469.152 to \n\line 469.165; the \n\line 145.8{\ul commissioner of }Iron Range resources and rehabilitation{\ul , acting after consultation } \n\line 145.9{\ul with the} board established under section \n\line 298.22; a municipality that is administering a \n\line 145.10development district created under sections \n\line 469.124 to \n\line 469.133 or any special law; a \n\line 145.11municipality that undertakes a project under sections \n\line 469.152 to \n\line 469.165, except a town \n\line 145.12located outside the metropolitan area as defined in section \n\line 473.121, subdivision 2, or with \n\line 145.13a population of 5,000 persons or less; or a municipality that exercises the powers of a port \n\line 145.14authority under any general or special law. \n\line 145.15(e) "Municipality" means a city, however organized, and, with respect to a project \n\line 145.16undertaken under sections \n\line 469.152 to \n\line 469.165, "municipality" has the meaning given in \n\line 145.17sections \n\line 469.152 to \n\line 469.165, and, with respect to a project undertaken under sections \n\line \n\line 145.18469.142\n\line to \n\line 469.151 or a county or multicounty project undertaken under sections \n\line 469.004 \n\line 145.19to \n\line 469.008, also includes any county. \n\line \n\line 145.20 Sec. 4. Minnesota Statutes 2014, section 276A.01, subdivision 8, is amended to read: \n\line 145.21 Subd. 8. Municipality. "Municipality" means a city, town, or township located \n\line 145.22in whole or part within the area. If a municipality is located partly within and partly \n\line 145.23without the area, the references in sections \n\line 276A.01 to \n\line 276A.09 to property or any portion \n\line 145.24thereof subject to taxation or taxing jurisdiction within the municipality are to the property \n\line 145.25or portion thereof that is located in that portion of the municipality within the area, \n\line 145.26except that the fiscal capacity of the municipality must be computed upon the basis of the \n\line 145.27valuation and population of the entire municipality. A municipality shall be excluded from \n\line 145.28the area if its municipal comprehensive zoning and planning policies conscientiously \n\line 145.29exclude most commercial-industrial development, for reasons other than preserving an \n\line 145.30agricultural use. The {\ul commissioner of }Iron Range resources and rehabilitation {\strike Board} and \n\line 145.31the commissioner of revenue shall jointly make this determination annually and shall \n\line 145.32notify those municipalities that are ineligible to participate in the tax base sharing program \n\line 145.33provided in this chapter for the following year.{\ul Before making the joint determination, the } \n\line 145.34{\ul commissioner of Iron Range resources and rehabilitation shall seek a recommendation } \n\line 145.35{\ul from the Iron Range Resources and Rehabilitation Board.} \n\line \n\line 146.1 Sec. 5. Minnesota Statutes 2014, section 276A.01, subdivision 17, is amended to read: \n\line 146.2 Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up \n\line 146.3to 25 percent of the areawide levy certified by the {\ul commissioner of Iron Range resources } \n\line 146.4{\ul and rehabilitation, after seeking a recommendation from the }Iron Range Resources and \n\line 146.5Rehabilitation Board{\ul ,} to be used for the purposes of the Iron Range school consolidation \n\line 146.6and cooperatively operated school account under section \n\line 298.28, subdivision 7a. \n\line 146.7(b) The allocation under paragraph (a) shall only be made after the {\ul commissioner of } \n\line 146.8{\ul Iron Range resources and rehabilitation, after seeking a recommendation from the }Iron \n\line 146.9Range Resources and Rehabilitation Board{\ul ,} has certified by June 30 that the Iron Range \n\line 146.10school consolidation and cooperatively operated account has insufficient funds to make \n\line 146.11payments as authorized under section \n\line 298.28, subdivision 7a. \n\line \n\line 146.12 Sec. 6. Minnesota Statutes 2014, section 282.38, subdivision 1, is amended to read: \n\line 146.13 Subdivision 1. Development. In any county where the county board by proper \n\line 146.14resolution sets aside funds for forest development pursuant to section \n\line 282.08, clause (5), \n\line 146.15item (i), or section \n\line 459.06, subdivision 2, the commissioner of Iron Range resources \n\line 146.16and rehabilitation {\strike with the approval of the}{\ul , after seeking a recommendation from the } \n\line 146.17{\ul Iron Range Resources and Rehabilitation }Board{\ul ,} may upon request of the county board \n\line 146.18assist said county in carrying out any project for the long range development of its forest \n\line 146.19resources through matching of funds or otherwise. \n\line \n\line 146.20 Sec. 7. Minnesota Statutes 2014, section 298.001, subdivision 8, is amended to read: \n\line 146.21 Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue \n\line 146.22of the state of Minnesota{\ul , except that when used in sections 298.22 to 298.227, and } \n\line 146.23{\ul 298.291 to 298.298, "commissioner" means the commissioner of Iron Range resources } \n\line 146.24{\ul and rehabilitation}. \n\line \n\line 146.25 Sec. 8. Minnesota Statutes 2014, section 298.22, subdivision 1, is amended to read: \n\line 146.26 Subdivision 1. The Office of the Commissioner of Iron Range resources \n\line 146.27and rehabilitation. (a) The Office of the Commissioner of Iron Range resources and \n\line 146.28rehabilitation is created as an agency in the executive branch of state government. The \n\line 146.29governor shall appoint the commissioner of Iron Range resources and rehabilitation \n\line 146.30under section \n\line 15.06.{\ul The commissioner may expend amounts appropriated to the } \n\line 146.31{\ul commissioner or the board for projects after submitting the expenditure to the board for } \n\line 146.32{\ul a recommendation under subdivision 1a.} \n\line 147.1(b) The commissioner may hold other positions or appointments that are not \n\line 147.2incompatible with duties as commissioner of Iron Range resources and rehabilitation. The \n\line 147.3commissioner may appoint a deputy commissioner. All expenses of the commissioner, \n\line 147.4including the payment of staff and other assistance as may be necessary, must be paid \n\line 147.5out of the amounts appropriated by section \n\line 298.28 or otherwise made available by law \n\line 147.6to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner \n\line 147.7may utilize contracting options available under section \n\line 471.345 when the commissioner \n\line 147.8determines it is in the best interest of the agency. The agency is not subject to sections \n\line \n\line 147.916E.016\n\line and \n\line 16C.05. \n\line 147.10(c) When the commissioner determines that distress and unemployment exists or \n\line 147.11may exist in the future in any county by reason of the removal of natural resources or \n\line 147.12a possibly limited use of natural resources in the future and any resulting decrease in \n\line 147.13employment, the commissioner may use whatever amounts of the appropriation made to \n\line 147.14the commissioner of revenue in section \n\line 298.28 that are determined to be necessary and \n\line 147.15proper in the development of the remaining resources of the county and in the vocational \n\line 147.16training and rehabilitation of its residents, except that the amount needed to cover cost \n\line 147.17overruns awarded to a contractor by an arbitrator in relation to a contract awarded by \n\line 147.18the commissioner or in effect after July 1, 1985, is appropriated from the general fund. \n\line 147.19For the purposes of this section, "development of remaining resources" includes, but is \n\line 147.20not limited to, the promotion of tourism. \n\line \n\line 147.21 Sec. 9. Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read: \n\line 147.22 Subd. 1a. Iron Range Resources and Rehabilitation Board. The Iron Range \n\line 147.23Resources and Rehabilitation Board consists of the state senators and representatives \n\line 147.24elected from state senatorial or legislative districts in which one-third or more of the \n\line 147.25residents reside in a taconite assistance area as defined in section \n\line 273.1341. One additional \n\line 147.26state senator shall also be appointed by the senate Subcommittee on Committees of the \n\line 147.27Committee on Rules and Administration. All expenditures and projects made by the \n\line 147.28commissioner shall first be submitted to the board {\strike for approval}. {\ul The board shall recommend } \n\line 147.29{\ul approval or disapproval or modification of the expenditures and projects. }The expenses \n\line 147.30of the board shall be paid by the state from the funds raised pursuant to this section. \n\line 147.31Members of the board may be reimbursed for expenses in the manner provided in sections \n\line \n\line 147.323.099\n\line , subdivision 1, and \n\line 3.101, and may receive per diem payments during the interims \n\line 147.33between legislative sessions in the manner provided in section \n\line 3.099, subdivision 1. \n\line 148.1The members shall be appointed in January of every odd-numbered year, and shall \n\line 148.2serve until January of the next odd-numbered year. Vacancies on the board shall be filled \n\line 148.3in the same manner as original members were chosen. \n\line \n\line 148.4 Sec. 10. Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read: \n\line 148.5 Subd. 5a. Forest trust. The commissioner, {\strike upon approval by}{\ul after requesting a } \n\line 148.6{\ul recommendation from} the board, may purchase forest lands in the taconite assistance area \n\line 148.7defined in under section \n\line 273.1341 with funds specifically authorized for the purchase. The \n\line 148.8acquired forest lands must be held in trust for the benefit of the citizens of the taconite \n\line 148.9assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall \n\line 148.10be managed and developed for recreation and economic development purposes. The \n\line 148.11commissioner, {\strike upon approval by}{\ul after requesting a recommendation from} the board, \n\line 148.12may sell forest lands purchased under this subdivision if the {\strike board finds}{\ul commissioner } \n\line 148.13{\ul determines} that the sale advances the purposes of the trust. Proceeds derived from the \n\line 148.14management or sale of the lands and from the sale of timber or removal of gravel or \n\line 148.15other minerals from these forest lands shall be deposited into an Iron Range Miners' \n\line 148.16Memorial Forest account that is established within the state financial accounts. Funds may \n\line 148.17be expended from the account {\strike upon approval by}{\ul after the commissioner has sought a } \n\line 148.18{\ul recommendation from} the board, to purchase, manage, administer, convey interests in, \n\line 148.19and improve the forest lands. {\strike With approval by}{\ul After the commissioner has sought a } \n\line 148.20{\ul recommendation from} the board, money in the Iron Range Miners' Memorial Forest \n\line 148.21account may be transferred into the corpus of the Douglas J. Johnson economic protection \n\line 148.22trust fund established under sections \n\line 298.291 to \n\line 298.294. The property acquired under \n\line 148.23the authority granted by this subdivision and income derived from the property or the \n\line 148.24operation or management of the property are exempt from taxation by the state or its \n\line 148.25political subdivisions while held by the forest trust. \n\line \n\line 148.26 Sec. 11. Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read: \n\line 148.27 Subd. 6. Private entity participation. {\ul After seeking a recommendation from }the \n\line 148.28board{\ul , the commissioner} may acquire an equity interest in any project for which {\strike it}{\ul the } \n\line 148.29{\ul commissioner} provides funding. The commissioner may establish, participate in the \n\line 148.30management of, and dispose of the assets of charitable foundations, nonprofit limited \n\line 148.31liability companies, and nonprofit corporations associated with any project for which it \n\line 148.32provides funding, including specifically, but without limitation, a corporation within the \n\line 148.33meaning of section \n\line 317A.011, subdivision 6. \n\line \n\line 149.1 Sec. 12. Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read: \n\line 149.2 Subd. 8. Spending priority. In making or {\strike approving}{\ul recommending} any \n\line 149.3expenditures on programs or projects, the commissioner and the board shall give the \n\line 149.4highest priority to programs and projects that target relief to those areas of the taconite \n\line 149.5assistance area as defined in section \n\line 273.1341, that have the largest percentages of job \n\line 149.6losses and population losses directly attributable to the economic downturn in the taconite \n\line 149.7industry since the 1980s. The commissioner and the board shall compare the 1980 \n\line 149.8population and employment figures with the 2000 population and employment figures, \n\line 149.9and shall specifically consider the job losses in 2000 and 2001 resulting from the closure \n\line 149.10of LTV Steel Mining Company, in making or {\strike approving}{\ul recommending} expenditures \n\line 149.11consistent with this subdivision, as well as the areas of residence of persons who suffered \n\line 149.12job loss for which relief is to be targeted under this subdivision. The commissioner \n\line 149.13may lease, for a term not exceeding 50 years and upon the terms determined by the \n\line 149.14commissioner {\strike and approved}{\ul after seeking review} by the board, surface and mineral \n\line 149.15interests owned or acquired by the state of Minnesota acting by and through the office of \n\line 149.16the commissioner of Iron Range resources and rehabilitation within those portions of the \n\line 149.17taconite assistance area affected by the closure of the LTV Steel Mining Company facility \n\line 149.18near Hoyt Lakes. The payments and royalties from these leases must be deposited into the \n\line 149.19fund established in section \n\line 298.292. This subdivision supersedes any other conflicting \n\line 149.20provisions of law and does not preclude the commissioner {\strike and the board} from making \n\line 149.21expenditures for programs and projects in other areas{\ul after seeking review by the board}. \n\line \n\line 149.22 Sec. 13. Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read: \n\line 149.23 Subd. 10. Sale or privatization of functions. The commissioner of Iron \n\line 149.24Range resources and rehabilitation may not sell or privatize the Ironworld Discovery \n\line 149.25Center or Giants Ridge Golf and Ski Resort without {\strike prior approval by} {\ul first seeking a } \n\line 149.26{\ul recommendation from }the board. \n\line \n\line 149.27 Sec. 14. Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read: \n\line 149.28 Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation \n\line 149.29shall annually prepare a budget for operational expenditures, programs, and projects, and \n\line 149.30submit it to the Iron Range Resources and Rehabilitation Board{\ul for a recommendation}. \n\line 149.31After the budget is approved by {\strike the board and} the governor, the commissioner may spend \n\line 149.32money in accordance with the approved budget. \n\line \n\line 149.33 Sec. 15. Minnesota Statutes 2014, section 298.221, is amended to read: \n\line 150.1298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION. \n\line 150.2(a) Except as provided in paragraph (c), all money paid to the state of Minnesota \n\line 150.3pursuant to the terms of any contract entered into by the state under authority of section \n\line \n\line 150.4298.22\n\line and any fees which may, in the discretion of the commissioner of Iron Range \n\line 150.5resources and rehabilitation, be charged in connection with any project pursuant to that \n\line 150.6section as amended, shall be deposited in the state treasury to the credit of the Iron Range \n\line 150.7Resources and Rehabilitation Board account in the special revenue fund and are hereby \n\line 150.8appropriated for the purposes of section \n\line 298.22. \n\line 150.9(b) Notwithstanding section \n\line 16A.013, merchandise may be accepted by the \n\line 150.10commissioner of the Iron Range Resources and Rehabilitation Board for payment of \n\line 150.11advertising contracts if the commissioner determines that the merchandise can be used \n\line 150.12for special event prizes or mementos at facilities operated by the board. Nothing in this \n\line 150.13paragraph authorizes the commissioner or a member of the board to receive merchandise \n\line 150.14for personal use. \n\line 150.15(c) All fees charged by the commissioner in connection with public use of the \n\line 150.16state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other \n\line 150.17revenues derived by the commissioner from the operation or lease of those facilities \n\line 150.18and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge \n\line 150.19Recreation Area must be deposited into an Iron Range Resources and Rehabilitation \n\line 150.20Board account that is created within the state enterprise fund. All funds deposited in the \n\line 150.21enterprise fund account are appropriated to the commissioner to be expended, {\strike subject to } \n\line 150.22{\strike approval by}{\ul after seeking a recommendation from} the board, as follows: \n\line 150.23(1) to pay costs associated with the construction, equipping, operation, repair, or \n\line 150.24improvement of the Giants Ridge Recreation Area facilities or lands; \n\line 150.25(2) to pay principal, interest and associated bond issuance, reserve, and servicing \n\line 150.26costs associated with the financing of the facilities; and \n\line 150.27(3) to pay the costs of any other project authorized under section \n\line 298.22. \n\line \n\line 150.28 Sec. 16. Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read: \n\line 150.29 Subd. 3. Project approval. All projects authorized by this section shall be submitted \n\line 150.30by the commissioner to the Iron Range Resources and Rehabilitation Board for {\strike approval } \n\line 150.31{\strike by}{\ul a recommendation from} the board. Prior to the commencement of a project involving \n\line 150.32the exercise by the commissioner of any authority of sections \n\line 469.174 to \n\line 469.179, the \n\line 150.33governing body of each municipality in which any part of the project is located and the \n\line 150.34county board of any county containing portions of the project not located in an incorporated \n\line 150.35area shall by majority vote approve or disapprove the project. Any project approved by \n\line 151.1the {\strike board}{\ul commissioner} and the applicable governing bodies, if any, together with detailed \n\line 151.2information concerning the project, its costs, the sources of its funding, and the amount of \n\line 151.3any bonded indebtedness to be incurred in connection with the project, shall be transmitted \n\line 151.4to the governor, who shall approve, disapprove, or return the proposal for additional \n\line 151.5consideration within 30 days of receipt. No project authorized under this section shall be \n\line 151.6undertaken, and no obligations shall be issued and no tax increments shall be expended for \n\line 151.7a project authorized under this section until the project has been approved by the governor. \n\line \n\line 151.8 Sec. 17. Minnesota Statutes 2014, section 298.2213, subdivision 4, is amended to read: \n\line 151.9 Subd. 4. Project approval. {\ul After seeking a recommendation from }the board {\strike and}{\ul , } \n\line 151.10{\ul the} commissioner shall by August 1 each year prepare a list of projects to be funded from \n\line 151.11the money appropriated in this section with necessary supporting information including \n\line 151.12descriptions of the projects, plans, and cost estimates. A project must not be approved by \n\line 151.13the {\strike board}{\ul commissioner} unless {\strike it} {\ul the commissioner }finds that: \n\line 151.14(1) the project will materially assist, directly or indirectly, the creation of additional \n\line 151.15long-term employment opportunities; \n\line 151.16(2) the prospective benefits of the expenditure exceed the anticipated costs; and \n\line 151.17(3) in the case of assistance to private enterprise, the project will serve a sound \n\line 151.18business purpose. \n\line 151.19Each project must be approved by the {\strike board and the} commissioner of Iron Range \n\line 151.20resources and rehabilitation. The list of projects must be submitted to the governor, \n\line 151.21who shall, by November 15 of each year, approve, disapprove, or return for further \n\line 151.22consideration, each project. The money for a project may be spent only upon approval of \n\line 151.23the project by the governor. The {\strike board}{\ul commissioner} may submit supplemental projects \n\line 151.24for approval at any time{\ul , after seeking a recommendation from the board}. \n\line \n\line 151.25 Sec. 18. Minnesota Statutes 2014, section 298.2213, subdivision 5, is amended to read: \n\line 151.26 Subd. 5. Advisory committees. {\strike Before submission to the board of a proposal for } \n\line 151.27{\strike a project for expenditure of money appropriated under this section,} The commissioner \n\line 151.28of Iron Range resources and rehabilitation shall appoint a technical advisory committee \n\line 151.29consisting of at least seven persons who are knowledgeable in areas related to the \n\line 151.30objectives of the proposal. If the project involves investment in a scientific research \n\line 151.31proposal, at least four of the committee members must be knowledgeable in the specific \n\line 151.32scientific research area relating to the project. Members of the committees must be \n\line 151.33compensated as provided in section \n\line 15.059, subdivision 3. The {\strike board}{\ul commissioner} shall \n\line 151.34not act on a proposal {\ul for a request for expenditure of money appropriated under this } \n\line 152.1{\ul section }until {\strike it has received} {\ul the commissioner has sought review from the board of }the \n\line 152.2evaluation and recommendations of the technical advisory committee. \n\line \n\line 152.3 Sec. 19. Minnesota Statutes 2014, section 298.2213, subdivision 6, is amended to read: \n\line 152.4 Subd. 6. Use of repayments and earnings. Principal and interest received in \n\line 152.5repayment of loans made under this section must be deposited in the {\strike state treasury } \n\line 152.6{\strike and are appropriated to the board for the purposes of this section}{\ul northeast Minnesota } \n\line 152.7{\ul economic development fund account in the special revenue fund in the state treasury. The } \n\line 152.8{\ul commissioner of Iron Range resources and rehabilitation must seek a recommendation } \n\line 152.9{\ul from the Iron Range Resources and Rehabilitation Board for any use of funds appropriated } \n\line 152.10{\ul under this section}. \n\line \n\line 152.11 Sec. 20. Minnesota Statutes 2014, section 298.223, subdivision 1, is amended to read: \n\line 152.12 Subdivision 1. Creation; purposes. A fund called the taconite environmental \n\line 152.13protection fund is created for the purpose of reclaiming, restoring and enhancing those \n\line 152.14areas of northeast Minnesota located within the taconite assistance area defined in section \n\line \n\line 152.15273.1341\n\line , that are adversely affected by the environmentally damaging operations \n\line 152.16involved in mining taconite and iron ore and producing iron ore concentrate and for the \n\line 152.17purpose of promoting the economic development of northeast Minnesota. The taconite \n\line 152.18environmental protection fund shall be used for the following purposes: \n\line 152.19(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation \n\line 152.20Board determines are in need of study and which will determine the environmental \n\line 152.21problems requiring remedial action; \n\line 152.22(2) reclamation, restoration, or reforestation of mine lands not otherwise provided \n\line 152.23for by state law; \n\line 152.24(3) local economic development projects but only if those projects are approved by \n\line 152.25the {\strike board}{\ul commissioner after seeking a recommendation of the projects from the board}, \n\line 152.26and public works, including construction of sewer and water systems located within the \n\line 152.27taconite assistance area defined in section \n\line 273.1341; \n\line 152.28(4) monitoring of mineral industry related health problems among mining employees; \n\line 152.29(5) local public works projects under section \n\line 298.227, paragraph (c); and \n\line 152.30(6) local public works projects as provided under this clause. The following amounts \n\line 152.31shall be distributed in 2009 based upon the taxable tonnage of production in 2008: \n\line 152.32(i) .4651 cent per ton to the city of Aurora for street repair and renovation; \n\line 152.33(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure \n\line 152.34improvements to the south side industrial site; \n\line 153.1(iii) .6460 cent per ton to the city of Buhl for street repair; \n\line 153.2(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements; \n\line 153.3(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure \n\line 153.4upgrades; \n\line 153.5(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure \n\line 153.6upgrades; \n\line 153.7(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure; \n\line 153.8(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility \n\line 153.9modifications for the miners' memorial; \n\line 153.10(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades; \n\line 153.11(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects; \n\line 153.12(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair; \n\line 153.13(xii) .6460 cent per ton to the town of Balkan for community center repairs; \n\line 153.14(xiii) .9044 cent per ton to the city of Babbitt for city garage construction; \n\line 153.15(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects; \n\line 153.16(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West; \n\line 153.17(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades; \n\line 153.18(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades; \n\line 153.19(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup; \n\line 153.20(xix) .3230 cent per ton to Lake County for trail construction; \n\line 153.21(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand \n\line 153.22Marais; \n\line 153.23(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure \n\line 153.24improvements; \n\line 153.25(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project; \n\line 153.26(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer \n\line 153.27improvements along Gayley Avenue; \n\line 153.28(xxiv) .3876 cent per ton to the city of Marble for construction of a city \n\line 153.29administration facility; \n\line 153.30(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the \n\line 153.31community center; \n\line 153.32(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure \n\line 153.33upgrades; \n\line 153.34(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades \n\line 153.35along Depot Street; \n\line 154.1(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter \n\line 154.2improvements; \n\line 154.3(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer \n\line 154.4infrastructure upgrades at Pokegema Golf Course and Park Place; \n\line 154.5(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades \n\line 154.6for 1st Avenue from River Road to 3rd Street SE; and \n\line 154.7(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing \n\line 154.8at Highway 2 and County Road 62. \n\line \n\line 154.9 Sec. 21. Minnesota Statutes 2014, section 298.223, subdivision 2, is amended to read: \n\line 154.10 Subd. 2. Administration. (a) The taconite area environmental protection fund shall \n\line 154.11be administered by the commissioner of the Iron Range Resources and Rehabilitation \n\line 154.12Board. The commissioner shall by September 1 of each year submit to the board a list \n\line 154.13of projects to be funded from the taconite area environmental protection fund, with such \n\line 154.14supporting information including description of the projects, plans, and cost estimates as \n\line 154.15may be necessary. \n\line 154.16 (b) Each year no less than one-half of the amounts deposited into the taconite \n\line 154.17environmental protection fund must be used for public works projects, including \n\line 154.18construction of sewer and water systems, as specified under subdivision 1, clause (3). \n\line 154.19{\ul After seeking a recommendation from }the Iron Range Resources and Rehabilitation Board{\ul , } \n\line 154.20{\ul the commissioner} may waive the requirements of this paragraph. \n\line 154.21 (c) {\strike Upon approval by the board,} The list of projects approved{\ul by the commissioner} \n\line 154.22under this subdivision{\ul , after the commissioner has sought review of the projects by the } \n\line 154.23{\ul board,} shall be submitted to the governor by November 1 of each year. By December 1 of \n\line 154.24each year, the governor shall approve or disapprove, or return for further consideration, \n\line 154.25each project. Funds for a project may be expended only upon approval of the project by \n\line 154.26the {\strike board}{\ul commissioner} and the governor. The commissioner may submit supplemental \n\line 154.27projects {\strike to the board and} {\ul for approval from the }governor {\strike for approval} {\ul after seeking review } \n\line 154.28{\ul of the supplemental projects from the board }at any time. \n\line \n\line 154.29 Sec. 22. Minnesota Statutes 2014, section 298.227, is amended to read: \n\line 154.30298.227 TACONITE ECONOMIC DEVELOPMENT FUND. \n\line 154.31 (a) An amount equal to that distributed pursuant to each taconite producer's taxable \n\line 154.32production and qualifying sales under section \n\line 298.28, subdivision 9a, shall be held by \n\line 154.33the Iron Range Resources and Rehabilitation Board in a separate taconite economic \n\line 154.34development fund for each taconite and direct reduced ore producer. Money from the \n\line 155.1fund for each producer shall be released by the commissioner after review by a joint \n\line 155.2committee consisting of an equal number of representatives of the salaried employees and \n\line 155.3the nonsalaried production and maintenance employees of that producer. The District 11 \n\line 155.4director of the United States Steelworkers of America, on advice of each local employee \n\line 155.5president, shall select the employee members. In nonorganized operations, the employee \n\line 155.6committee shall be elected by the nonsalaried production and maintenance employees. The \n\line 155.7review must be completed no later than six months after the producer presents a proposal \n\line 155.8for expenditure of the funds to the committee. The funds held pursuant to this section may \n\line 155.9be released only for workforce development and associated public facility improvement, \n\line 155.10or for acquisition of plant and stationary mining equipment and facilities for the producer \n\line 155.11or for research and development in Minnesota on new mining, or taconite, iron, or steel \n\line 155.12production technology, but only if the producer provides a matching expenditure equal to \n\line 155.13the amount of the distribution to be used for the same purpose beginning with distributions \n\line 155.14in 2014. Effective for proposals for expenditures of money from the fund beginning May \n\line 155.1526, 2007, the commissioner may not release the funds before the next scheduled meeting \n\line 155.16of the board. If a proposed expenditure is not approved by the{\ul commissioner, after } \n\line 155.17{\ul seeking a recommendation from the} board, the funds must be deposited in the Taconite \n\line 155.18Environmental Protection Fund under sections \n\line 298.222 to \n\line 298.225. If a producer uses \n\line 155.19money which has been released from the fund prior to May 26, 2007 to procure haulage \n\line 155.20trucks, mobile equipment, or mining shovels, and the producer removes the piece of \n\line 155.21equipment from the taconite tax relief area defined in section \n\line 273.134 within ten years \n\line 155.22from the date of receipt of the money from the fund, a portion of the money granted \n\line 155.23from the fund must be repaid to the taconite economic development fund. The portion \n\line 155.24of the money to be repaid is 100 percent of the grant if the equipment is removed from \n\line 155.25the taconite tax relief area within 12 months after receipt of the money from the fund, \n\line 155.26declining by ten percent for each of the subsequent nine years during which the equipment \n\line 155.27remains within the taconite tax relief area. If a taconite production facility is sold after \n\line 155.28operations at the facility had ceased, any money remaining in the fund for the former \n\line 155.29producer may be released to the purchaser of the facility on the terms otherwise applicable \n\line 155.30to the former producer under this section. If a producer fails to provide matching funds \n\line 155.31for a proposed expenditure within six months after the commissioner approves release \n\line 155.32of the funds, the funds are available for release to another producer in proportion to the \n\line 155.33distribution provided and under the conditions of this section. Any portion of the fund \n\line 155.34which is not released by the commissioner within one year of its deposit in the fund shall \n\line 155.35be divided between the taconite environmental protection fund created in section \n\line 298.223 \n\line \n\line 155.36and the Douglas J. Johnson economic protection trust fund created in section \n\line 298.292 for \n\line 156.1placement in their respective special accounts. Two-thirds of the unreleased funds shall be \n\line 156.2distributed to the taconite environmental protection fund and one-third to the Douglas J. \n\line 156.3Johnson economic protection trust fund. \n\line 156.4 (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of \n\line 156.5distributions and the review process, an amount equal to ten cents per taxable ton of \n\line 156.6production in 2007, for distribution in 2008 only, that would otherwise be distributed under \n\line 156.7paragraph (a), may be used for a loan or grant for the cost of providing for a value-added \n\line 156.8wood product facility located in the taconite tax relief area and in a county that contains a \n\line 156.9city of the first class. This amount must be deducted from the distribution under paragraph \n\line 156.10(a) for which a matching expenditure by the producer is not required. The granting of the \n\line 156.11loan or grant is subject to approval by {\ul the commissioner, after seeking a recommendation } \n\line 156.12{\ul from }the board. If the money is provided as a loan, interest must be payable on the loan at \n\line 156.13the rate prescribed in section \n\line 298.2213, subdivision 3. (ii) Repayments of the loan and \n\line 156.14interest, if any, must be deposited in the taconite environment protection fund under \n\line 156.15sections \n\line 298.222 to \n\line 298.225. If a loan or grant is not made under this paragraph by July 1, \n\line 156.162012, the amount that had been made available for the loan under this paragraph must be \n\line 156.17transferred to the taconite environment protection fund under sections \n\line 298.222 to \n\line 298.225. \n\line 156.18(iii) Money distributed in 2008 to the fund established under this section that exceeds ten \n\line 156.19cents per ton is available to qualifying producers under paragraph (a) on a pro rata basis. \n\line 156.20(c) Repayment or transfer of money to the taconite environmental protection fund \n\line 156.21under paragraph (b), item (ii), must be allocated by the {\ul commissioner of }Iron Range \n\line 156.22resources and rehabilitation{\ul , after seeking a recommendation from the Iron Range } \n\line 156.23{\ul Resources and Rehabilitation} Board for public works projects in house legislative districts \n\line 156.24in the same proportion as taxable tonnage of production in 2007 in each house legislative \n\line 156.25district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for \n\line 156.26distribution in 2008. Notwithstanding any other law to the contrary, expenditures under \n\line 156.27this paragraph do not require approval by the governor. For purposes of this paragraph, \n\line 156.28"house legislative districts" means the legislative districts in existence on May 15, 2009. \n\line \n\line 156.29 Sec. 23. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read: \n\line 156.30 Subd. 7a. Iron Range school consolidation and cooperatively operated school \n\line 156.31account. The following amounts must be allocated to the Iron Range Resources and \n\line 156.32Rehabilitation Board to be deposited in the Iron Range school consolidation and \n\line 156.33cooperatively operated school account that is hereby created: \n\line 157.1(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax \n\line 157.2imposed under section \n\line 298.24; and (ii) for distributions beginning in 2024, five cents per \n\line 157.3taxable ton of the tax imposed under section \n\line 298.24; \n\line 157.4(2) the amount as determined under section \n\line 298.17, paragraph (b), clause (3); \n\line 157.5(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax \n\line 157.6proceeds attributable to the increase in the implicit price deflator as provided in section \n\line \n\line 157.7298.24, subdivision 1\n\line , with the remaining one-third to be distributed to the Douglas J. \n\line 157.8Johnson economic protection trust fund; \n\line 157.9(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the \n\line 157.10increased tax proceeds attributable to the increase in the implicit price deflator as provided \n\line 157.11in section \n\line 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining \n\line 157.12one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and \n\line 157.13(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the \n\line 157.14increased tax proceeds attributable to the increase in the implicit price deflator as provided \n\line 157.15in section \n\line 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the \n\line 157.16remaining one-third to be distributed to the Douglas J. Johnson economic protection \n\line 157.17trust fund; and \n\line 157.18(4) any other amount as provided by law. \n\line 157.19Expenditures from this account {\ul may be approved as ongoing annual expenditures } \n\line 157.20{\ul and} shall be made only to provide disbursements to assist school districts with the \n\line 157.21payment of bonds that were issued for qualified school projects, or for any other school \n\line 157.22disbursement as approved by the {\ul commissioner of Iron Range resources and rehabilitation } \n\line 157.23{\ul after the commissioner of Iron Range resources and rehabilitation has sought review of the } \n\line 157.24{\ul expenditures by the }Iron Range Resources and Rehabilitation Board. For purposes of this \n\line 157.25section, "qualified school projects" means school projects within the taconite assistance \n\line 157.26area as defined in section \n\line 273.1341, that were (1) approved, by referendum, after April 3, \n\line 157.272006; and (2) approved by the commissioner of education pursuant to section \n\line 123B.71. \n\line 157.28Beginning in fiscal year 2019, the disbursement to school districts for payments for \n\line 157.29bonds issued under section \n\line 123A.482, subdivision 9, must be increased each year to \n\line 157.30offset any reduction in debt service equalization aid that the school district qualifies for in \n\line 157.31that year, under section \n\line 123B.53, subdivision 6, compared with the amount the school \n\line 157.32district qualified for in fiscal year 2018. \n\line 157.33No expenditure under this section shall be made unless approved by {\strike seven members } \n\line 157.34{\strike of}{\ul the commissioner of Iron Range resources and rehabilitation after seeking review of the } \n\line 157.35{\ul expenditure from} the Iron Range Resources and Rehabilitation Board. \n\line \n\line 158.1 Sec. 24. Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read: \n\line 158.2 Subd. 9d. Iron Range higher education account. Five cents per taxable ton must \n\line 158.3be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in \n\line 158.4an Iron Range higher education account that is hereby created, to be used for higher \n\line 158.5education programs conducted at educational institutions in the taconite assistance area \n\line 158.6defined in section \n\line 273.1341. The Iron Range Higher Education committee under section \n\line \n\line 158.7298.2214,\n\line and the {\strike Iron Range Resources and Rehabilitation Board}{\ul commissioner of Iron } \n\line 158.8{\ul Range resources and rehabilitation} must approve all expenditures from the account{\ul , after } \n\line 158.9{\ul seeking review and recommendation of the expenditures from the Iron Range Resources } \n\line 158.10{\ul and Rehabilitation Board}. \n\line \n\line 158.11 Sec. 25. Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read: \n\line 158.12 Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust \n\line 158.13fund may be used for the following purposes: \n\line 158.14 (1) to provide loans, loan guarantees, interest buy-downs and other forms of \n\line 158.15participation with private sources of financing, but a loan to a private enterprise shall be \n\line 158.16for a principal amount not to exceed one-half of the cost of the project for which financing \n\line 158.17is sought, and the rate of interest on a loan to a private enterprise shall be no less than the \n\line 158.18lesser of eight percent or an interest rate three percentage points less than a full faith \n\line 158.19and credit obligation of the United States government of comparable maturity, at the \n\line 158.20time that the loan is approved; \n\line 158.21 (2) to fund reserve accounts established to secure the payment when due of the \n\line 158.22principal of and interest on bonds issued pursuant to section \n\line 298.2211; \n\line 158.23 (3) to pay in periodic payments or in a lump-sum payment any or all of the interest \n\line 158.24on bonds issued pursuant to chapter 474 for the purpose of constructing, converting, \n\line 158.25or retrofitting heating facilities in connection with district heating systems or systems \n\line 158.26utilizing alternative energy sources; \n\line 158.27 (4) to invest in a venture capital fund or enterprise that will provide capital to other \n\line 158.28entities that are engaging in, or that will engage in, projects or programs that have the \n\line 158.29purposes set forth in subdivision 1. No investments may be made in a venture capital fund \n\line 158.30or enterprise unless at least two other unrelated investors make investments of at least \n\line 158.31$500,000 in the venture capital fund or enterprise, and the investment by the Douglas \n\line 158.32J. Johnson economic protection trust fund may not exceed the amount of the largest \n\line 158.33investment by an unrelated investor in the venture capital fund or enterprise. For purposes \n\line 158.34of this subdivision, an "unrelated investor" is a person or entity that is not related to \n\line 158.35the entity in which the investment is made or to any individual who owns more than 40 \n\line 159.1percent of the value of the entity, in any of the following relationships: spouse, parent, \n\line 159.2child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of \n\line 159.3the value of all interests in it. For purposes of determining the limitations under this \n\line 159.4clause, the amount of investments made by an investor other than the Douglas J. Johnson \n\line 159.5economic protection trust fund is the sum of all investments made in the venture capital \n\line 159.6fund or enterprise during the period beginning one year before the date of the investment \n\line 159.7by the Douglas J. Johnson economic protection trust fund; and \n\line 159.8 (5) to purchase forest land in the taconite assistance area defined in section \n\line 273.1341 \n\line \n\line 159.9to be held and managed as a public trust for the benefit of the area for the purposes \n\line 159.10authorized in section \n\line 298.22, subdivision 5a. Property purchased under this section may \n\line 159.11be sold by the commissioner {\strike upon approval by}{\ul after seeking a recommendation from} \n\line 159.12the board. The net proceeds must be deposited in the trust fund for the purposes and \n\line 159.13uses of this section. \n\line 159.14 Money from the trust fund shall be expended only in or for the benefit of the taconite \n\line 159.15assistance area defined in section \n\line 273.1341. \n\line \n\line 159.16 Sec. 26. Minnesota Statutes 2014, section 298.294, is amended to read: \n\line 159.17298.294 INVESTMENT OF FUND. \n\line 159.18(a) The trust fund established by section \n\line 298.292 shall be invested pursuant to law \n\line 159.19by the State Board of Investment and the net interest, dividends, and other earnings arising \n\line 159.20from the investments shall be transferred, except as provided in paragraph (b), on the first \n\line 159.21day of each month to the trust and shall be included and become part of the trust fund. \n\line 159.22The amounts transferred, including the interest, dividends, and other earnings earned \n\line 159.23prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year \n\line 159.241983, which is appropriated April 21, 1983, are appropriated from the trust fund to the \n\line 159.25commissioner of Iron Range resources and rehabilitation for deposit in a separate account \n\line 159.26for expenditure for the purposes set forth in section \n\line 298.292. Amounts appropriated \n\line 159.27pursuant to this section shall not cancel but shall remain available unless expended. \n\line 159.28(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends, \n\line 159.29and other earnings under paragraph (a) shall be transferred to a special account. Funds \n\line 159.30in the special account are available for loans or grants to businesses, with priority given \n\line 159.31to businesses with 25 or fewer employees. Funds may be used for wage subsidies for \n\line 159.32up to 52 weeks of up to $5 per hour or other activities, including, but not limited to, \n\line 159.33short-term operating expenses and purchase of equipment and materials by businesses \n\line 159.34under financial duress, that will create additional jobs in the taconite assistance area \n\line 160.1under section \n\line 273.1341. Expenditures from the special account must be approved by the \n\line 160.2{\ul commissioner after seeking a recommendation from the }board. \n\line 160.3(c) To qualify for a grant or loan, a business must be currently operating and have \n\line 160.4been operating for one year immediately prior to its application for a loan or grant, and its \n\line 160.5corporate headquarters must be located in the taconite assistance area. \n\line \n\line 160.6 Sec. 27. Minnesota Statutes 2014, section 298.296, subdivision 1, is amended to read: \n\line 160.7 Subdivision 1. Project approval. {\ul (a) }The {\ul commissioner of Iron Range resources and } \n\line 160.8{\ul rehabilitation, after seeking a recommendation from the }board {\strike and commissioner}{\ul ,} shall by \n\line 160.9August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson \n\line 160.10economic protection trust with necessary supporting information including description of \n\line 160.11the projects, plans, and cost estimates. These projects shall be consistent with the priorities \n\line 160.12established in section \n\line 298.292 and shall not be approved by the {\strike board}{\ul commissioner} \n\line 160.13unless {\strike it}{\ul the commissioner, after seeking a recommendation from the board,} finds that: \n\line 160.14{\strike (a)}{\ul (1)} the project will materially assist, directly or indirectly, the creation of \n\line 160.15additional long-term employment opportunities; \n\line 160.16{\strike (b)}{\ul (2)} the prospective benefits of the expenditure exceed the anticipated costs; and \n\line 160.17{\strike (c)}{\ul (3)} in the case of assistance to private enterprise, the project will serve a sound \n\line 160.18business purpose. \n\line 160.19{\ul (b) }Each project must be approved by {\strike over one-half of all of the members of the } \n\line 160.20{\strike board and} the commissioner of Iron Range resources and rehabilitation{\ul after seeking a } \n\line 160.21{\ul recommendation from the board for the project}. The list of projects shall be submitted to \n\line 160.22the governor, who shall, by November 15 of each year, approve or disapprove, or return \n\line 160.23for further consideration, each project. The money for a project may be expended only \n\line 160.24upon approval of the project by the governor. The {\strike board}{\ul commissioner} may submit {\ul a } \n\line 160.25supplemental {\strike projects}{\ul project} for approval at any time{\ul after seeking a recommendation for } \n\line 160.26{\ul the project from the board}. \n\line \n\line 160.27 Sec. 28. Minnesota Statutes 2014, section 298.296, subdivision 2, is amended to read: \n\line 160.28 Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended \n\line 160.29on projects and for administration of the trust fund only from the net interest, earnings, \n\line 160.30and dividends arising from the investment of the trust at any time, including net interest, \n\line 160.31earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made \n\line 160.32available for use in fiscal year 1983, except that any amount required to be paid out of the \n\line 160.33trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article \n\line 160.34X, section 4, and to make school bond payments and payments to recipients of taconite \n\line 161.1production tax proceeds pursuant to section \n\line 298.225, may be taken from the corpus of \n\line 161.2the trust. \n\line 161.3 (b) Additionally, upon recommendation by the{\ul commissioner after seeking a } \n\line 161.4{\ul recommendation from the} board, up to $13,000,000 from the corpus of the trust may be \n\line 161.5made available for use as provided in subdivision 4, and up to $10,000,000 from the \n\line 161.6corpus of the trust may be made available for use as provided in section \n\line 298.2961. \n\line 161.7 (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust \n\line 161.8on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts \n\line 161.9made available under section \n\line 298.28, subdivision 4, and Laws 2002, chapter 377, article \n\line 161.108, section 17, may be expended on projects. Funds may be expended for projects under \n\line 161.11this paragraph only if the project: \n\line 161.12 (1) is for the purposes established under section \n\line 298.292, subdivision 1, clause \n\line 161.13(1) or (2); and \n\line 161.14 (2) is approved by {\strike two-thirds of all of the members of}{\ul the commissioner after } \n\line 161.15{\ul seeking a recommendation from} the board. \n\line 161.16No money made available under this paragraph or paragraph (d) can be used for \n\line 161.17administrative or operating expenses of the Iron Range Resources and Rehabilitation Board \n\line 161.18or expenses relating to any facilities owned or operated by the board on May 18, 2002. \n\line 161.19 (d) Upon recommendation by {\strike a unanimous vote of all members}{\ul the commissioner } \n\line 161.20{\ul after seeking a unanimous recommendation} of the board, amounts in addition to those \n\line 161.21authorized under paragraphs (a), (b), and (c) may be expended on projects described in \n\line 161.22section \n\line 298.292, subdivision 1. \n\line 161.23 (e) Annual administrative costs, not including detailed engineering expenses for the \n\line 161.24projects, shall not exceed five percent of the net interest, dividends, and earnings arising \n\line 161.25from the trust in the preceding fiscal year. \n\line 161.26 (f) Principal and interest received in repayment of loans made pursuant to this \n\line 161.27section, and earnings on other investments made under section \n\line 298.292, subdivision 2, \n\line 161.28clause (4), shall be deposited in the state treasury and credited to the trust. These receipts \n\line 161.29are appropriated to the board for the purposes of sections \n\line 298.291 to \n\line 298.298. \n\line 161.30 (g) Additionally, notwithstanding section \n\line 298.293, upon the approval of {\ul the } \n\line 161.31{\ul commissioner of Iron Range resources and rehabilitation, after seeking a recommendation } \n\line 161.32{\ul from }the board, money from the corpus of the trust may be expanded to purchase forest \n\line 161.33lands within the taconite assistance area as provided in sections \n\line 298.22, subdivision 5a, \n\line 161.34and \n\line 298.292, subdivision 2, clause (5). \n\line \n\line 161.35 Sec. 29. Minnesota Statutes 2014, section 298.296, subdivision 4, is amended to read: \n\line 162.1 Subd. 4. Temporary loan authority. (a) {\ul After seeking a recommendation from }the \n\line 162.2board{\ul , the commissioner of Iron Range resources and rehabilitation } may {\strike recommend that}{\ul } \n\line 162.3{\ul use} up to $7,500,000 from the corpus of the trust may be {\strike used} for loans, loan guarantees, \n\line 162.4grants, or equity investments as provided in this subdivision. The money would be \n\line 162.5available for loans for construction and equipping of facilities constituting (1) a value \n\line 162.6added iron products plant, which may be either a new plant or a facility incorporated into \n\line 162.7an existing plant that produces iron upgraded to a minimum of 75 percent iron content or \n\line 162.8any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine \n\line 162.9or minerals processing plant for any mineral subject to the net proceeds tax imposed \n\line 162.10under section \n\line 298.015. A loan or loan guarantee under this paragraph may not exceed \n\line 162.11$5,000,000 for any facility. \n\line 162.12(b) Additionally, the {\strike board}{\ul commissioner of Iron Range resources and rehabilitation} \n\line 162.13must reserve the first $2,000,000 of the net interest, dividends, and earnings arising \n\line 162.14from the investment of the trust after June 30, 1996, to be used for grants, loans, loan \n\line 162.15guarantees, or equity investments for the purposes set forth in paragraph (a). This amount \n\line 162.16must be reserved until it is used as described in this subdivision. \n\line 162.17(c) Additionally, the {\strike board}{\ul commissioner} may recommend that up to $5,500,000 \n\line 162.18from the corpus of the trust may be used for additional grants, loans, loan guarantees, or \n\line 162.19equity investments for the purposes set forth in paragraph (a). \n\line 162.20(d) The {\ul commissioner of Iron Range resources and rehabilitation, after seeking a } \n\line 162.21{\ul recommendation from the }board{\ul ,} may require that {\strike it}{\ul the board} receive an equity percentage \n\line 162.22in any project to which it contributes under this section. \n\line \n\line 162.23 Sec. 30. Minnesota Statutes 2014, section 298.2961, subdivision 2, is amended to read: \n\line 162.24 Subd. 2. Projects; approval. (a) Projects funded must be for: \n\line 162.25 (1) environmentally unique reclamation projects; or \n\line 162.26 (2) pit or plant repairs, expansions, or modernizations other than for a value added \n\line 162.27iron products plant. \n\line 162.28 (b) {\strike To be proposed by the board, a project must be approved by}{\ul Before the } \n\line 162.29{\ul commissioner may propose a project, the commissioner must seek a recommendation } \n\line 162.30{\ul from} the board. The money for a project may be spent only upon approval of the project \n\line 162.31by the governor. The {\strike board}{\ul commissioner} may submit {\ul a }supplemental {\strike projects}{\ul project} for \n\line 162.32approval at any time{\ul after seeking a recommendation for the project from the board}. \n\line 162.33 (c) The {\strike board}{\ul commissioner} may require that {\strike it}{\ul the board} receive an equity \n\line 162.34percentage in any project to which it contributes under this section. \n\line \n\line 163.1 Sec. 31. Minnesota Statutes 2014, section 298.2961, subdivision 4, is amended to read: \n\line 163.2 Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions \n\line 163.3under section \n\line 298.28, subdivision 9b, and to make grants or loans as provided in this \n\line 163.4subdivision. Any grant or loan made under this subdivision must {\ul first }be approved by \n\line 163.5the {\ul commissioner after seeking a recommendation from the }board, established under \n\line 163.6section \n\line 298.22. \n\line 163.7 (b) Distributions received in calendar year 2005 are allocated to the city of Virginia \n\line 163.8for improvements and repairs to the city's steam heating system. \n\line 163.9 (c) Distributions received in calendar year 2006 are allocated to a project of the \n\line 163.10public utilities commissions of the cities of Hibbing and Virginia to convert their electrical \n\line 163.11generating plants to the use of biomass products, such as wood. \n\line 163.12 (d) Distributions received in calendar year 2007 must be paid to the city of Tower to \n\line 163.13be used for the East Two Rivers project in or near the city of Tower. \n\line 163.14 (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution \n\line 163.15must be paid to St. Louis County for deposit in its county road and bridge fund to be \n\line 163.16used for relocation of St. Louis County Road 715, commonly referred to as Pike River \n\line 163.17Road. The remainder of the 2008 distribution must be paid to St. Louis County for a \n\line 163.18grant to the city of Virginia for connecting sewer and water lines to the St. Louis County \n\line 163.19maintenance garage on Highway 135, further extending the lines to interconnect with the \n\line 163.20city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent \n\line 163.21years are allocated for projects under section \n\line 298.223, subdivision 1. \n\line \n\line 163.22 Sec. 32. Minnesota Statutes 2014, section 298.298, is amended to read: \n\line 163.23298.298 LONG-RANGE PLAN. \n\line 163.24Consistent with the policy established in sections \n\line 298.291 to \n\line 298.298, the Iron \n\line 163.25Range Resources and Rehabilitation Board shall prepare and present to the governor and \n\line 163.26the legislature by December 31, 2006, a long-range plan for the use of the Douglas J. \n\line 163.27Johnson economic protection trust fund for the economic development and diversification \n\line 163.28of the taconite assistance area defined in section \n\line 273.1341. No project shall be {\strike approved}{\ul } \n\line 163.29{\ul recommended} by the Iron Range Resources and Rehabilitation Board {\strike which}{\ul if the board } \n\line 163.30{\ul finds that the project} is not consistent with the goals and objectives established in the \n\line 163.31long-range plan. \n\line \n\line 163.32 Sec. 33. Minnesota Statutes 2014, section 298.46, subdivision 2, is amended to read: \n\line 163.33 Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly \n\line 163.34constituted authorities of a taxing district there are in existence reserves of unmined iron \n\line 164.1ore located in such district, these authorities may petition the {\ul commissioner of }Iron Range \n\line 164.2resources and rehabilitation {\strike Board} for authority to petition the county assessor to verify \n\line 164.3the existence of such reserves and to ascertain the value thereof by drilling in a manner \n\line 164.4consistent with established engineering and geological exploration methods, in order that \n\line 164.5such taxing district may be able to forecast in a proper manner its future economic and \n\line 164.6fiscal potentials.{\ul The commissioner of Iron Range resources and rehabilitation may grant } \n\line 164.7{\ul the authority to petition after seeking a recommendation from the Iron Range Resources } \n\line 164.8{\ul and Rehabilitation Board.} \n\line \n\line 164.9 Sec. 34. {\ul IRON RANGE RESOURCES AND REHABILITATION BOARD; } \n\line 164.10{\ul EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION.} \n\line 164.11{\ul (a) "Commissioner" as used in this section means the commissioner of the Iron } \n\line 164.12{\ul Range Resources and Rehabilitation Board unless otherwise specified.} \n\line 164.13{\ul (b) Notwithstanding any law to the contrary, the commissioner, in consultation } \n\line 164.14{\ul with the commissioner of management and budget, shall offer a targeted early separation } \n\line 164.15{\ul incentive program for employees of the commissioner who have attained the age of 60 } \n\line 164.16{\ul years or who have received credit for at least 30 years of allowable service under the } \n\line 164.17{\ul provisions of Minnesota Statutes, chapter 352. The commissioner shall also offer a } \n\line 164.18{\ul targeted separation incentive program for employees of the commissioner whose positions } \n\line 164.19{\ul are in support of operations at Giants Ridge and will be eliminated if the agency no longer } \n\line 164.20{\ul directly manages Giants Ridge operations.} \n\line 164.21{\ul (c) The early separation incentive program may include one or more of the following:} \n\line 164.22{\ul (1) employer-paid postseparation health, medical, and dental insurance until age } \n\line 164.23{\ul 65; and} \n\line 164.24{\ul (2) cash incentives that may, but are not required to be, used to purchase additional } \n\line 164.25{\ul years of service credit through the Minnesota State Retirement System, to the extent that } \n\line 164.26{\ul the purchases are otherwise authorized by law.} \n\line 164.27{\ul (d) The commissioner shall establish eligibility requirements for employees to } \n\line 164.28{\ul receive an incentive.} \n\line 164.29{\ul (e) The commissioner, consistent with the established program provisions under } \n\line 164.30{\ul paragraph (b), and with the eligibility requirements under paragraph (f), may designate } \n\line 164.31{\ul specific programs or employees as eligible to be offered the incentive program.} \n\line 164.32{\ul (f) Acceptance of the offered incentive must be voluntary on the part of the } \n\line 164.33{\ul employee and must be in writing. The incentive may only be offered at the sole discretion } \n\line 164.34{\ul of the commissioner.} \n\line 165.1{\ul (g) The cost of the incentive is payable solely by funds made available to the } \n\line 165.2{\ul commissioner by law, but only on prior approval of the expenditures by the commissioner, } \n\line 165.3{\ul after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.} \n\line 165.4{\ul (h) Unilateral implementation of this section by the commissioner is not an unfair } \n\line 165.5{\ul labor practice under Minnesota Statutes, chapter 179A.} \n\line 165.6{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment. } \n\line 165.7{\ul This section is repealed June 30, 2017.} \n\line \n\line 165.8 Sec. 35. {\ul REVISOR'S INSTRUCTION.} \n\line 165.9{\ul The revisor of statutes shall identify and propose necessary changes to Minnesota } \n\line 165.10{\ul Statutes and Minnesota Rules that are consistent with the goals of this act to (i) transfer } \n\line 165.11{\ul discretionary approval authority for all expenditures and projects from the Iron Range } \n\line 165.12{\ul Resources and Rehabilitation Board to the commissioner of Iron Range resources and } \n\line 165.13{\ul rehabilitation, and (ii) provide that the commissioner must, in good faith, seek the review } \n\line 165.14{\ul and recommendation of the board, as required, before exercising approval authority. The } \n\line 165.15{\ul revisor shall submit the proposal, in a form ready for introduction, during the 2017 regular } \n\line 165.16{\ul legislative session to the chairs and ranking minority members of the senate and house of } \n\line 165.17{\ul representatives committees with jurisdiction over taxes.} \n\line \n\line
\n\line 165.20 Section 1. Minnesota Statutes 2014, section 290C.01, is amended to read: \n\line 165.21290C.01 PURPOSE. \n\line 165.22It is the policy of this state to promote sustainable forest resource management on \n\line 165.23the state's public and private lands. {\strike Recognizing that}{\ul The state's} private forests comprise \n\line 165.24approximately one-half of the state forest land resources{\strike , that healthy and robust forest } \n\line 165.25{\strike land provides significant benefits to the state of Minnesota, and that ad}{\ul . These forests } \n\line 165.26{\ul play a critical role in protecting water quality and soil resources, and provide extensive } \n\line 165.27{\ul wildlife habitat, diverse recreational experiences, and significant forest products that } \n\line 165.28{\ul support the state's economy. Ad} valorem property taxes represent a significant annual \n\line 165.29cost that can discourage long-term forest management investments{\ul . In order to foster } \n\line 165.30{\ul silviculture investments and retain these forests for their economic and ecological benefits}, \n\line 165.31this chapter, hereafter referred to as the "Sustainable Forest Incentive Act," is enacted \n\line 165.32to encourage the state's private forest landowners to make a long-term commitment to \n\line 165.33sustainable forest management. \n\line \n\line 166.1 Sec. 2. Minnesota Statutes 2014, section 290C.02, subdivision 1, is amended to read: \n\line 166.2 Subdivision 1. Application. When used in sections \n\line 290C.01 to \n\line {\strike 290C.11}{\ul 290C.13}, \n\line 166.3the terms in this section have the meanings given them. \n\line 166.4{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 166.5 Sec. 3. Minnesota Statutes 2014, section 290C.02, subdivision 3, is amended to read: \n\line 166.6 Subd. 3. Claimant. (a) "Claimant" means: \n\line 166.7 (1) a person, as that term is defined in section \n\line 290.01, subdivision 2, who owns \n\line 166.8forest land in Minnesota and files an application authorized by the Sustainable Forest \n\line 166.9Incentive Act; \n\line 166.10 (2) a purchaser or grantee if property enrolled in the program was sold or transferred \n\line 166.11after the original application was filed and prior to the annual incentive payment being \n\line 166.12made; or \n\line 166.13 (3) an owner of land previously covered by an auxiliary forest contract that \n\line 166.14automatically qualifies for inclusion in the Sustainable Forest Incentive Act program \n\line 166.15pursuant to section \n\line 88.49, subdivision 9a, or \n\line 88.491, subdivision 2. \n\line 166.16 {\strike The purchaser or grantee must notify the commissioner in writing of the sale or } \n\line 166.17{\strike transfer of the property.}{\ul (b)} Owners of land that qualifies for inclusion pursuant to section \n\line \n\line 166.1888.49, subdivision 9a\n\line , or \n\line 88.491, subdivision 2, must notify the commissioner in writing \n\line 166.19of the expiration of the auxiliary forest contract or land trade with a governmental unit \n\line 166.20and submit an application to the commissioner by {\strike August 15}{\ul July 1} in order to be eligible \n\line 166.21to receive a payment by October 1 of that same year. For purposes of section \n\line 290C.11, \n\line 166.22claimant also includes any person bound by the covenant required in section \n\line 290C.04. \n\line 166.23 {\strike (b)}{\ul (c)} No more than one claimant is entitled to a payment under this chapter with \n\line 166.24respect to any tract, parcel, or piece of land enrolled under this chapter that has been \n\line 166.25assigned the same parcel identification number. When enrolled forest land is owned by \n\line 166.26two or more persons, the owners must determine between them which person is eligible \n\line 166.27to claim the payments provided under sections \n\line 290C.01 to \n\line {\strike 290C.11} {\ul 209C.13}. In the \n\line 166.28case of property sold or transferred, the former owner and the purchaser or grantee must \n\line 166.29determine between them which person is eligible to claim the payments provided under \n\line 166.30sections \n\line 290C.01 to \n\line {\strike 290C.11} {\ul 209C.13}. The owners, transferees, or grantees must notify \n\line 166.31the commissioner in writing which person is eligible to claim the payments. \n\line 166.32{\ul EFFECTIVE DATE.}{\ul This section is effective for certifications and applications } \n\line 166.33{\ul due in 2017 and thereafter.} \n\line \n\line 167.1 Sec. 4. Minnesota Statutes 2014, section 290C.02, subdivision 6, is amended to read: \n\line 167.2 Subd. 6. Forest land. "Forest land" means land containing a minimum of 20 \n\line 167.3contiguous acres for which the owner has implemented a forest management plan that was \n\line 167.4prepared or updated within the past ten years by an approved plan writer. For purposes of \n\line 167.5this subdivision, acres are considered to be contiguous even if they are separated by a road, \n\line 167.6waterway, railroad track, or other similar intervening property. At least 50 percent of the \n\line 167.7contiguous acreage must meet the definition of forest land in section \n\line 88.01, subdivision 7. \n\line 167.8For the purposes of sections \n\line 290C.01 to \n\line {\strike 290C.11} {\ul 209C.13}, forest land does not include \n\line 167.9(i) land used for residential or agricultural purposes, (ii) land enrolled in the reinvest in \n\line 167.10Minnesota program, a state or federal conservation reserve or easement reserve program \n\line 167.11under sections \n\line 103F.501 to \n\line 103F.531, the Minnesota agricultural property tax law under \n\line 167.12section \n\line 273.111, or land subject to agricultural land preservation controls or restrictions \n\line 167.13as defined in section \n\line 40A.02 or under the Metropolitan Agricultural Preserves Act under \n\line 167.14chapter 473H, (iii) {\strike land exceeding 60,000 acres that is subject to a single conservation } \n\line 167.15{\strike easement funded under section }\n\line {\strike 97A.056}{\strike or a comparable permanent easement conveyed } \n\line 167.16{\strike to a governmental or nonprofit entity; (iv)} any land that becomes subject to a conservation \n\line 167.17easement funded under section \n\line 97A.056 or a comparable permanent easement conveyed \n\line 167.18to a governmental or nonprofit entity after May 30, 2013; or {\strike (v)} {\ul (iv) }land improved with a \n\line 167.19structure{\strike ,}{\ul ;} pavement, {\ul other than a paved trail under easement, lease, or terminable license } \n\line 167.20{\ul to the state of Minnesota or a political subdivision; }sewer{\strike ,}{\ul ;} campsite{\strike ,}{\ul ;} or any road, other \n\line 167.21than a township road, used for purposes not prescribed in the forest management plan. \n\line 167.22{\ul EFFECTIVE DATE.}{\ul This section is effective for applications made in 2017 and } \n\line 167.23{\ul thereafter. } \n\line \n\line 167.24 Sec. 5. Minnesota Statutes 2014, section 290C.03, is amended to read: \n\line 167.25290C.03 ELIGIBILITY REQUIREMENTS. \n\line 167.26(a) Land may be enrolled in the sustainable forest incentive program under this \n\line 167.27chapter if all of the following conditions are met: \n\line 167.28(1) the land consists of at least 20 contiguous acres and at least 50 percent of the \n\line 167.29land must meet the definition of forest land in section \n\line 88.01, subdivision 7, during the \n\line 167.30enrollment; \n\line 167.31(2) a forest management plan for the land must be prepared by an approved plan \n\line 167.32writer and implemented during the period in which the land is enrolled; \n\line 168.1(3) timber harvesting and forest management guidelines must be used in conjunction \n\line 168.2with any timber harvesting or forest management activities conducted on the land during \n\line 168.3the period in which the land is enrolled; \n\line 168.4(4) the land must be enrolled for a minimum of eight years; \n\line 168.5(5) there are no delinquent property taxes on the land; {\strike and} \n\line 168.6(6) claimants enrolling more than 1,920 acres{\ul or enrolling any land that is subject } \n\line 168.7{\ul to a conservation easement funded under section 97A.056, or a comparable permanent } \n\line 168.8{\ul easement conveyed to a governmental or nonprofit entity} in the sustainable forest incentive \n\line 168.9program must allow year-round, nonmotorized access to fish and wildlife resources and \n\line 168.10motorized access on established and maintained roads and trails, unless the road or trail is \n\line 168.11temporarily closed for safety, natural resource, or road damage reasons on enrolled land \n\line 168.12except within one-fourth mile of a permanent dwelling or during periods of high fire \n\line 168.13hazard as determined by the commissioner of natural resources{\strike .}{\ul ;} \n\line 168.14{\ul (7) the claimant has registered the forest management plan under clause (2) with the } \n\line 168.15{\ul commissioner of natural resources, who has determined that the land meets qualifications } \n\line 168.16{\ul for enrollment; and} \n\line 168.17{\ul (8) the land is not classified as class 2c managed forest land.} \n\line 168.18(b) Claimants required to allow access under paragraph (a), clause (6), do not by \n\line 168.19that action: \n\line 168.20(1) extend any assurance that the land is safe for any purpose; \n\line 168.21(2) confer upon the person the legal status of an invitee or licensee to whom a duty \n\line 168.22of care is owed; or \n\line 168.23(3) assume responsibility for or incur liability for any injury to the person or property \n\line 168.24caused by an act or omission of the person. \n\line 168.25{\ul (c) The commissioner of natural resources shall annually provide county assessors } \n\line 168.26{\ul verification information regarding plan registration under paragraph (a), clause (7), on } \n\line 168.27{\ul a timely basis.} \n\line 168.28{\ul (d) A minimum of three acres must be excluded from enrolled land when the land is } \n\line 168.29{\ul improved with a structure that is not a minor, ancillary, and nonresidential structure.} \n\line 168.30{\ul (e) If land does not meet the definition of forest land in section 290C.02, subdivision } \n\line 168.31{\ul 6, because the land is: } \n\line 168.32{\ul (1) enrolled in a state or federal conservation reserve or easement program under } \n\line 168.33{\ul sections 103F.501 to 103F.531; } \n\line 168.34{\ul (2) subject to the Minnesota agricultural property tax under section 273.111; or } \n\line 169.1{\ul (3) subject to agricultural land preservation controls or restrictions as defined in } \n\line 169.2{\ul section 40A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H, the } \n\line 169.3{\ul entire tax parcel that contains the land is not eligible to be enrolled in the program.} \n\line 169.4{\ul EFFECTIVE DATE.}{\ul This section is effective for certifications and applications } \n\line 169.5{\ul due in 2017 and thereafter.} \n\line \n\line 169.6 Sec. 6. Minnesota Statutes 2014, section 290C.04, is amended to read: \n\line 169.7290C.04 APPLICATIONS. \n\line 169.8 (a) A landowner may apply to enroll forest land for the sustainable forest incentive \n\line 169.9program under this chapter. The claimant must complete, sign, and submit an application \n\line 169.10to the commissioner by September 30 in order for the land to become eligible beginning \n\line 169.11in the next year. The application shall be on a form prescribed by the {\strike commissioner } \n\line 169.12{\ul commissioners of revenue and natural resources }and must include the information the \n\line 169.13commissioner deems necessary. At a minimum, the application must show the following \n\line 169.14information for the land and the claimant: (i) the claimant's Social Security number or \n\line 169.15state or federal business tax registration number and date of birth, (ii) the claimant's \n\line 169.16address, (iii) the claimant's signature, (iv) the county's parcel identification numbers for \n\line 169.17the tax parcels that completely contain the claimant's forest land that is sought to be \n\line 169.18enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the approved \n\line 169.19plan writer's signature and identification number, {\strike and} (vii) proof, in a form specified by the \n\line 169.20commissioner, that the claimant has executed and acknowledged in the manner required \n\line 169.21by law for a deed, and recorded, a covenant that the land is not and shall not be developed \n\line 169.22in a manner inconsistent with the requirements and conditions of this chapter{\ul , and (viii) a } \n\line 169.23{\ul registration number for the forest management plan, issued by the commissioner of natural } \n\line 169.24{\ul resources}. The covenant shall state in writing that the covenant is binding on the claimant \n\line 169.25and the claimant's successor or assignee, and that it runs with the land for a period of not \n\line 169.26less than eight years{\ul unless the claimant requests termination of the covenant after a } \n\line 169.27{\ul reduction in payments due to changes in the payment formula under section 290C.07 or as } \n\line 169.28{\ul a result of executive action, the amount of payment a claimant is eligible to receive under } \n\line 169.29{\ul section 290C.07 is reduced or limited}. The commissioner shall specify the form of the \n\line 169.30covenant and provide copies upon request. The covenant must include a legal description \n\line 169.31that encompasses all the forest land that the claimant wishes to enroll under this section or \n\line 169.32the certificate of title number for that land if it is registered land.{\ul The commissioner of } \n\line 169.33{\ul natural resources shall record the area eligible for enrollment into the Sustainable Forest } \n\line 169.34{\ul Incentive Act as electronic geospatial data, as defined in section 16E.30, subdivision 10.} \n\line 170.1{\ul (b) The commissioner shall provide a copy of the application filed by the claimant } \n\line 170.2{\ul and all supporting materials to the commissioner of natural resources within 15 days of } \n\line 170.3{\ul receipt or by September 1, whichever is sooner. The commissioner of natural resources } \n\line 170.4{\ul must notify the commissioner whether the applicant qualifies for enrollment within 30 } \n\line 170.5{\ul days of receipt, and if the applicant qualifies for enrollment, the commissioner of natural } \n\line 170.6{\ul resources shall specify the number of qualifying acres per tax parcel.} \n\line 170.7 {\strike (b) In all cases,}{\ul (c)} The commissioner shall notify the claimant within 90 days after \n\line 170.8receipt of a completed application that either the land has or has not been approved for \n\line 170.9enrollment. A claimant whose application is denied may appeal the denial as provided \n\line 170.10in section \n\line 290C.13. \n\line 170.11 {\strike (c)}{\ul (d)} Within 90 days after the denial of an application, or within 90 days after the \n\line 170.12final resolution of any appeal related to the denial, the commissioner shall execute and \n\line 170.13acknowledge a document releasing the land from the covenant required under this chapter. \n\line 170.14The document must be mailed to the claimant and is entitled to be recorded. \n\line 170.15 {\strike (d)}{\ul (e)} The Social Security numbers collected from individuals under this section are \n\line 170.16private data as provided in section \n\line 13.355. The federal business tax registration number \n\line 170.17and date of birth data collected under this section are also private data on individuals or \n\line 170.18nonpublic data, as defined in section \n\line 13.02, subdivisions 9 and 12, but may be shared \n\line 170.19with county assessors for purposes of tax administration and with county treasurers for \n\line 170.20purposes of the revenue recapture under chapter 270A. \n\line 170.21{\ul EFFECTIVE DATE.}{\ul This section is effective for certifications and applications } \n\line 170.22{\ul due in 2017 and thereafter.} \n\line \n\line 170.23 Sec. 7. Minnesota Statutes 2014, section 290C.05, is amended to read: \n\line 170.24290C.05 ANNUAL CERTIFICATION{\ul AND MONITORING}. \n\line 170.25 {\ul (a) }On or before {\strike July 1}{\ul May 15} of each year, beginning with the year after the \n\line 170.26original claimant has received an approved application, the commissioner shall send each \n\line 170.27claimant enrolled under the sustainable forest incentive program a certification form. For \n\line 170.28purposes of this section, the {\strike original} claimant is the {\strike person that filed the first application } \n\line 170.29{\strike under section }\n\line {\strike 290C.04}{\strike to enroll the land in the program}{\ul current property owner on record, } \n\line 170.30{\ul or the person designated by the owners in the case of multiple ownership}. The claimant \n\line 170.31must sign {\ul and return} the certification{\strike , attesting}{\ul to the commissioner by July 1 of that } \n\line 170.32{\ul same year, and (1) attest} that the requirements and conditions for continued enrollment \n\line 170.33in the program are currently being met, and {\strike must return the signed certification form to } \n\line 170.34{\strike the commissioner by August 15 of that same year}{\ul (2) provide a report in the form and } \n\line 171.1{\ul manner determined by the commissioner of natural resources describing the management } \n\line 171.2{\ul practices that have been carried out on the enrolled property during the prior year}. If the \n\line 171.3claimant does not return an annual certification form by the due date, the provisions \n\line 171.4in section \n\line 290C.11 apply.{\ul The commissioner of natural resources must verify that the } \n\line 171.5{\ul claimant meets program requirements.} \n\line 171.6{\ul (b) The commissioner must provide the certification form and annual report described } \n\line 171.7{\ul in paragraph (a), clause (2), to the commissioner of natural resources by August 1.} \n\line 171.8{\ul (c) The commissioner of natural resources must conduct annual monitoring } \n\line 171.9{\ul of a subset of claimants, excluding land also enrolled in a conservation easement } \n\line 171.10{\ul program. Claimants will be selected for monitoring based on reported violations, annual } \n\line 171.11{\ul certification, and random selections. Monitoring will be conducted on ten percent of } \n\line 171.12{\ul claimants as of July 1 of each year. Monitoring may include, but is not limited to, a site } \n\line 171.13{\ul visit by a Department of Natural Resources or contracted forester. The commissioner of } \n\line 171.14{\ul natural resources must develop a monitoring form to record the monitoring data.} \n\line 171.15{\ul EFFECTIVE DATE.}{\ul Paragraphs (a) and (b) are effective for certifications and } \n\line 171.16{\ul applications due in 2017 and thereafter. Paragraph (c) is effective July 1, 2019.} \n\line \n\line 171.17 Sec. 8. Minnesota Statutes 2014, section 290C.055, is amended to read: \n\line 171.18290C.055 LENGTH OF COVENANT. \n\line 171.19(a) {\strike The covenant remains in effect for a minimum of eight years.}{\ul Claimants enrolling } \n\line 171.20{\ul any land that is subject to a conservation easement funded under section 97A.056 or a } \n\line 171.21{\ul comparable permanent easement conveyed to a governmental or nonprofit entity must } \n\line 171.22{\ul enroll their land under a covenant with a minimum duration of eight years. All other } \n\line 171.23{\ul claimants may choose to enroll their land under a covenant with a minimum duration of } \n\line 171.24{\ul eight, 20, or 50 years. }If {\strike land is removed}{\ul the claimant requests removal of land} from the \n\line 171.25program before it has been enrolled for {\strike four years}{\ul one-half the number of years of the } \n\line 171.26{\ul covenant's duration}, the covenant remains in effect for {\strike eight years}{\ul the entire duration } \n\line 171.27{\ul of the covenant }from the date recorded. \n\line 171.28(b) If land that has been enrolled for {\strike four years}{\ul one-half the number of years of the } \n\line 171.29{\ul covenant's minimum duration} or more is removed from the program for any reason, there \n\line 171.30is a waiting period before the covenant terminates. The covenant terminates on January 1 \n\line 171.31of the fifth{\ul , 11th, or 26th} calendar year {\ul for the eight-, 20-, or 50-year minimum covenant, } \n\line 171.32{\ul respectively, }that begins after the date that: \n\line 171.33(1) the commissioner receives notification from the claimant that the claimant wishes \n\line 171.34to remove the land from the program under section \n\line 290C.10; or \n\line 172.1(2) the date that the land is removed from the program under section \n\line 290C.11. \n\line 172.2(c) Notwithstanding the other provisions of this section, the covenant is terminated: \n\line 172.3(1) at the same time that the land is removed from the program due to acquisition of \n\line 172.4title or possession for a public purpose under section \n\line 290C.10; or \n\line 172.5(2) at the request of the claimant {\strike after}{\ul (i) if there is} a reduction in payments due to \n\line 172.6changes in the payment formula under section \n\line 290C.07{\ul ; or (ii) if, as a result of executive } \n\line 172.7{\ul action, the amount of payment a claimant is eligible to receive under section 290C.07 is } \n\line 172.8{\ul reduced or limited}. \n\line 172.9{\ul EFFECTIVE DATE.}{\ul This section is effective for certifications and applications in } \n\line 172.10{\ul 2017 and thereafter.} \n\line \n\line 172.11 Sec. 9. Minnesota Statutes 2014, section 290C.07, is amended to read: \n\line 172.12290C.07 CALCULATION OF INCENTIVE PAYMENT. \n\line 172.13 {\ul (a) }An approved claimant under the sustainable forest incentive program is eligible \n\line 172.14to receive an annual payment{\ul for each acre of enrolled land, excluding any acre improved } \n\line 172.15{\ul with a paved trail under easement, lease, or terminable license to the state of Minnesota or } \n\line 172.16{\ul a political subdivision}. The payment shall equal {\strike $7 per acre for each acre enrolled in the } \n\line 172.17{\strike sustainable forest incentive program.}{\ul a percentage of the property tax that would be paid } \n\line 172.18{\ul on the land determined by using the previous year's statewide average total tax rate for all } \n\line 172.19{\ul taxes levied within townships and unorganized territories, the estimated market value per } \n\line 172.20{\ul acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for } \n\line 172.21{\ul claimants enrolling land that is subject to a conservation easement funded under section } \n\line 172.22{\ul 97A.056}{\ul or a comparable permanent easement conveyed to a governmental or nonprofit } \n\line 172.23{\ul entity before May 31, 2013, 25 percent; (2) for claimants enrolling land that is not subject } \n\line 172.24{\ul to a conservation easement under an eight-year covenant, 65 percent; (3) for claimants } \n\line 172.25{\ul enrolling land that is not subject to a conservation easement under a 20-year covenant, 90 } \n\line 172.26{\ul percent; and (4) for claimants enrolling land that is not subject to a conservation easement } \n\line 172.27{\ul under a 50-year covenant, 115 percent. } \n\line 172.28 {\ul (b) The calculated payment shall not be less than the payment received in 2016 and } \n\line 172.29{\ul shall not increase or decrease by more than ten percent relative to the payment received } \n\line 172.30{\ul for the previous year.} \n\line 172.31{\ul (c) In addition to the payments provided under this section, a claimant enrolling } \n\line 172.32{\ul more than 1,920 acres shall be allowed an additional payment per acre equal to the } \n\line 172.33{\ul amount prescribed in paragraph (a), clause (1), for all acres of enrolled land on which } \n\line 172.34{\ul public access is allowed, as required under section 290C.03, paragraph (a), clause (6), } \n\line 173.1{\ul excluding any land subject to a conservation easement funded under section 97A.056, or a } \n\line 173.2{\ul permanent easement conveyed to a governmental or nonprofit entity that is required to } \n\line 173.3{\ul allow for public access under section 290C.03, paragraph (a), clause (6).} \n\line 173.4{\ul EFFECTIVE DATE.}{\ul This section is effective for calculations made in 2017 and } \n\line 173.5{\ul thereafter. } \n\line \n\line 173.6 Sec. 10. Minnesota Statutes 2014, section 290C.08, subdivision 1, is amended to read: \n\line 173.7 Subdivision 1. Annual payment. An incentive payment for each acre of enrolled \n\line 173.8land will be made annually to each claimant in the amount determined under section \n\line \n\line 173.9290C.07\n\line . {\ul By September 15 of each year, the commissioner of natural resources will } \n\line 173.10{\ul certify to the commissioner the eligibility of each claimant to receive a payment. }The \n\line 173.11incentive payment shall be paid{\ul by the commissioner} on or before October 1 each year \n\line 173.12based on the certifications due {\strike August 15}{\ul July 1} of that year. Interest at the annual rate \n\line 173.13determined under section \n\line 270C.40 shall be included with any incentive payment not \n\line 173.14paid by the later of October 1 of the year the certification was due, or 45 days after the \n\line 173.15completed certification was returned or filed if the commissioner accepts a certification \n\line 173.16filed after {\strike August 15}{\ul July 1} of the taxes payable year as the resolution of an appeal. \n\line 173.17{\ul EFFECTIVE DATE.}{\ul This section is effective for certifications and applications } \n\line 173.18{\ul due in 2017 and thereafter.} \n\line \n\line 173.19 Sec. 11. Minnesota Statutes 2014, section 290C.10, is amended to read: \n\line 173.20290C.10 WITHDRAWAL PROCEDURES. \n\line 173.21{\strike An approved claimant}{\ul (a) The current owner of land enrolled} under the sustainable \n\line 173.22forest incentive program for a minimum of {\strike four years}{\ul one-half the number of years } \n\line 173.23{\ul of the covenant's minimum duration} may notify the commissioner of the intent to \n\line 173.24terminate enrollment. Within 90 days of receipt of notice to terminate enrollment, the \n\line 173.25commissioner shall inform the claimant in writing, acknowledging receipt of this notice \n\line 173.26and indicating the effective date of termination from the sustainable forest incentive \n\line 173.27program. Termination of enrollment in the sustainable forest incentive program occurs on \n\line 173.28January 1 of the fifth{\ul , 11th, or 26th} calendar year{\ul for the eight-, 20-, or 50-year respective } \n\line 173.29{\ul minimum covenant} that begins after receipt by the commissioner of the termination \n\line 173.30notice. After the commissioner issues an effective date of termination, a claimant wishing \n\line 173.31to continue the land's enrollment in the sustainable forest incentive program beyond the \n\line 173.32termination date must apply for enrollment as prescribed in section \n\line 290C.04. A claimant \n\line 173.33who withdraws a parcel of land from this program may not reenroll the parcel for a period \n\line 174.1of three years. Within 90 days after the termination date, the commissioner shall execute \n\line 174.2and acknowledge a document releasing the land from the covenant required under this \n\line 174.3chapter. The document must be mailed to the claimant and is entitled to be recorded. \n\line 174.4{\ul (b) Notwithstanding paragraph (a), on request of the claimant, } the commissioner may \n\line 174.5allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the \n\line 174.6state of Minnesota, any local government unit, or any other entity which has the power of \n\line 174.7eminent domain acquires title or possession to the land for a public purpose {\strike notwithstanding } \n\line 174.8{\strike the provisions of this section}. In the case of {\strike such}{\ul an eligible} acquisition{\ul under this } \n\line 174.9{\ul paragraph}, the commissioner shall execute and acknowledge a document releasing the \n\line 174.10land acquired by the state, local government unit, or other entity from the covenant. \n\line 174.11{\ul (c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner } \n\line 174.12{\ul shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty } \n\line 174.13{\ul when a government or nonprofit entity acquires a permanent conservation easement on the } \n\line 174.14{\ul enrolled property and the conservation easement is at least as restrictive as the covenant } \n\line 174.15{\ul required under section 290C.04. The commissioner of natural resources must notify the } \n\line 174.16{\ul commissioner of lands acquired under this paragraph that are eligible for withdrawal. } \n\line 174.17{\ul In the case of an eligible easement acquisition under this paragraph, the commissioner } \n\line 174.18{\ul shall execute and acknowledge a document releasing the land subject to the easement } \n\line 174.19{\ul from the covenant.} \n\line 174.20{\ul (d) Notwithstanding paragraph (a), upon request of the claimant, the commissioner } \n\line 174.21{\ul shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty for } \n\line 174.22{\ul land that is subject to fee or easement acquisition or lease to the state of Minnesota or a } \n\line 174.23{\ul political subdivision of the state for the public purpose of a paved trail. The commissioner } \n\line 174.24{\ul of natural resources must notify the commissioner of lands acquired under this paragraph } \n\line 174.25{\ul that are eligible for withdrawal. In the case of an eligible fee or easement acquisition or } \n\line 174.26{\ul lease under this paragraph, the commissioner shall execute and acknowledge a document } \n\line 174.27{\ul releasing the land subject to fee or easement acquisition or lease by the state or political } \n\line 174.28{\ul subdivision of the state.} \n\line 174.29{\ul (e)} All other enrolled land must remain in the program. \n\line 174.30{\ul EFFECTIVE DATE.}{\ul The amendments to paragraphs (c) and (d) are effective } \n\line 174.31{\ul the day following final enactment. The amendments to paragraphs (a), (b), and (e) are } \n\line 174.32{\ul effective for notifications made in 2017 and thereafter.} \n\line \n\line 174.33 Sec. 12. {\ul [290C.101] TRANSFER OF OWNERSHIP.} \n\line 174.34 {\ul Subdivision 1.} {\ul Definitions.} {\ul (a) For purposes of this section, the following terms } \n\line 174.35{\ul have the meanings provided.} \n\line 175.1{\ul (b) "New owner" means a prospective purchaser or grantee.} \n\line 175.2{\ul (c) "Owner" means a grantor or seller.} \n\line 175.3 {\ul Subd. 2.} {\ul Notification to commissioner.} {\ul (a) An owner must notify the commissioner } \n\line 175.4{\ul if the owner transfers any or all of the owner's land enrolled in the sustainable forest } \n\line 175.5{\ul incentive program to one or more new owners within 60 days of the transfer of title to the } \n\line 175.6{\ul property. The notification must include the legal descriptions of the transferred property, } \n\line 175.7{\ul the tax parcel numbers, and the name and address of the new owner. If transfer of ownership } \n\line 175.8{\ul is a result of the death of the claimant, the provisions of section 290C.12 shall apply.} \n\line 175.9{\ul (b) Upon notification, the commissioner shall inform the new owner of the } \n\line 175.10{\ul restrictions of the covenant required by section 290C.04 and the withdrawal procedures } \n\line 175.11{\ul under section 290C.10. In order for the new owner to receive payments pursuant to this } \n\line 175.12{\ul chapter, the new owner must file an application and register a new forest management plan } \n\line 175.13{\ul with the commissioner of natural resources within two years from the date the title of the } \n\line 175.14{\ul property was transferred to remain eligible.} \n\line 175.15 {\ul Subd. 3.} {\ul Termination of enrollment.} {\ul The commissioner will terminate enrollment } \n\line 175.16{\ul according to the procedure in section 290C.10 for failure of the new owner to register a } \n\line 175.17{\ul forest management plan within the time period in subdivision 2, paragraph (b).} \n\line 175.18{\ul EFFECTIVE DATE.}{\ul This section is effective July 1, 2016.} \n\line \n\line 175.19 Sec. 13. Minnesota Statutes 2014, section 290C.11, is amended to read: \n\line 175.20290C.11 PENALTIES FOR REMOVAL. \n\line 175.21 (a) If the commissioner determines that land enrolled in the sustainable forest \n\line 175.22incentive program is in violation of the conditions for enrollment as specified in section \n\line \n\line 175.23290C.03\n\line ,{\ul or upon notification by the commissioner of natural resources that land enrolled } \n\line 175.24{\ul is in violation of the conditions for enrollment,} the commissioner shall notify the {\strike claimant } \n\line 175.25{\ul current owner of the land} of the intent to remove {\strike all}{\ul the tax parcel of the} enrolled land \n\line 175.26{\ul where the violation has occurred }from the sustainable forest incentive program. {\ul The } \n\line 175.27{\ul penalties described under paragraph (c) apply. }The {\strike claimant}{\ul current owner} has 60 days to \n\line 175.28appeal this determination under the provisions of section \n\line 290C.13. \n\line 175.29 (b) If the commissioner determines the land is to be removed from the sustainable \n\line 175.30forest incentive program{\ul due to the construction or addition of an improvement to the } \n\line 175.31{\ul property}, the {\strike claimant}{\ul owner of the tax parcel that is in violation} is liable for payment \n\line 175.32to the commissioner in the amount equal to{\ul : (1) }the payments {\strike received}{\ul issued related to } \n\line 175.33{\ul the enrolled tax parcel} under this chapter for the previous four-year period{\ul in the case of } \n\line 175.34{\ul an eight-year minimum covenant, ten-year period in the case of a 20-year minimum } \n\line 176.1{\ul covenant, or 25-year period in the case of a 50-year minimum covenant}, plus interest{\ul ; and } \n\line 176.2{\ul (2) 25 percent of the estimated market value of the property as reclassified under section } \n\line 176.3{\ul 273.13 due to the structure being on the tax parcel, as determined by the assessor}. \n\line 176.4{\ul (c) If the commissioner of natural resources determines that the land is used for } \n\line 176.5{\ul purposes other than forestry purposes, the commissioner of natural resources shall notify } \n\line 176.6{\ul the commissioner of revenue, who shall notify the current owner of the tax parcel that is in } \n\line 176.7{\ul violation that the current owner is liable to the commissioner in an amount equal to: (1) 30 } \n\line 176.8{\ul percent of the estimated market value as property reclassified under section 273.13, due } \n\line 176.9{\ul to the change in use, as determined by the assessor; and (2) the payments issued related } \n\line 176.10{\ul to the enrolled tax parcel under this chapter for the previous four-year period in the case } \n\line 176.11{\ul of an eight-year covenant, ten-year period in the case of a 20-year covenant, or 25-year } \n\line 176.12{\ul period in the case of a 50-year covenant, plus interest.} \n\line 176.13 {\ul (d)} The claimant has 90 days to satisfy the payment for removal of land from the \n\line 176.14sustainable forest incentive program under this section. If the penalty is not paid within \n\line 176.15the 90-day period under this paragraph, the commissioner shall certify the amount to the \n\line 176.16county auditor for collection as a part of the general ad valorem real property taxes on the \n\line 176.17land in the following taxes payable year. \n\line 176.18{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 176.19 Sec. 14. Minnesota Statutes 2014, section 290C.13, subdivision 6, is amended to read: \n\line 176.20 Subd. 6. Determination of appeal. On the basis of applicable law and available \n\line 176.21information, the commissioner shall determine the validity, if any, in whole or in part, \n\line 176.22of the appeal and notify the claimant of the decision. This notice must be in writing \n\line 176.23and contain the basis for the determination.{\ul The commissioner shall consult with the } \n\line 176.24{\ul commissioner of natural resources when an appeal relates to the use of the property for } \n\line 176.25{\ul forestry or nonforestry purposes and for appeals related to forest management plans.} \n\line 176.26{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 176.27 Sec. 15. {\ul SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION } \n\line 176.28{\ul PROVISION.} \n\line 176.29{\ul (a) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the } \n\line 176.30{\ul owner of enrolled lands may elect through May 15, 2018, and without penalty, to change } \n\line 176.31{\ul the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055. The } \n\line 176.32{\ul owner of enrolled land must provide notice to the Department of Revenue of its intent to } \n\line 176.33{\ul change the length of its covenant.} \n\line 177.1{\ul (b) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the } \n\line 177.2{\ul owner of enrolled land must comply with the changes made in the act by certifications due } \n\line 177.3{\ul in 2018, as required under Minnesota Statutes, section 290C.05.} \n\line 177.4{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 177.5 Sec. 16. {\ul ADMINISTRATIVE APPROPRIATION.} \n\line 177.6{\ul $600,000 in fiscal year 2017 is appropriated from the general fund to the } \n\line 177.7{\ul commissioner of natural resources for administering this article. The funding base for } \n\line 177.8{\ul administering this article in fiscal year 2018 and thereafter is $600,000.} \n\line 177.9{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 177.10 Sec. 17. {\ul REPEALER.} \n\line 177.11{\ul Minnesota Statutes 2014, section 290C.02, subdivisions 5 and 9,}{\ul are repealed.} \n\line 177.12{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line
177.13ARTICLE 11 \n\line \n\line
\n\line
177.14MISCELLANEOUS \n\line \n\line
\n\line 177.15 Section 1. Minnesota Statutes 2015 Supplement, section 16A.152, subdivision 2, \n\line 177.16is amended to read: \n\line 177.17 Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general \n\line 177.18fund revenues and expenditures, the commissioner of management and budget determines \n\line 177.19that there will be a positive unrestricted budgetary general fund balance at the close of \n\line 177.20the biennium, the commissioner of management and budget must allocate money to the \n\line 177.21following accounts and purposes in priority order: \n\line 177.22 (1) the cash flow account established in subdivision 1 until that account reaches \n\line 177.23$350,000,000; \n\line 177.24 (2) the budget reserve account established in subdivision 1a until that account \n\line 177.25reaches {\strike $810,992,000}{\ul $1,596,522,000}; \n\line 177.26 (3) the amount necessary to increase the aid payment schedule for school district \n\line 177.27aids and credits payments in section \n\line 127A.45 to not more than 90 percent rounded to the \n\line 177.28nearest tenth of a percent without exceeding the amount available and with any remaining \n\line 177.29funds deposited in the budget reserve;{\ul and} \n\line 177.30 (4) the amount necessary to restore all or a portion of the net aid reductions under \n\line 177.31section \n\line 127A.441 and to reduce the property tax revenue recognition shift under section \n\line \n\line 177.32123B.75, subdivision 5\n\line , by the same amount{\strike ;}{\ul .} \n\line 178.1 {\strike (5) the closed landfill investment fund established in section }\n\line {\strike 115B.421}{\strike until } \n\line 178.2{\strike $63,215,000 has been transferred into the account. This clause expires after the entire } \n\line 178.3{\strike amount of the transfer has been made; and} \n\line 178.4{\strike (6) the metropolitan landfill contingency action trust account established in section } \n\line 178.5{\strike 473.845}{\strike until $8,100,000 has been transferred into the account. This clause expires after } \n\line 178.6{\strike the entire amount of the transfer has been made.} \n\line 178.7 (b) The amounts necessary to meet the requirements of this section are appropriated \n\line 178.8from the general fund within two weeks after the forecast is released or, in the case of \n\line 178.9transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations \n\line 178.10schedules otherwise established in statute. \n\line 178.11 (c) The commissioner of management and budget shall certify the total dollar \n\line 178.12amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of \n\line 178.13education. The commissioner of education shall increase the aid payment percentage and \n\line 178.14reduce the property tax shift percentage by these amounts and apply those reductions to \n\line 178.15the current fiscal year and thereafter. \n\line 178.16{\ul EFFECTIVE DATE.}{\ul This section is effective July 1, 2016.} \n\line \n\line 178.17 Sec. 2. {\ul [116J.952] NEW MARKETS GRANT PROGRAM.} \n\line 178.18 {\ul Subdivision 1.} {\ul Grant program established.} {\ul The commissioner shall award new } \n\line 178.19{\ul markets grants for qualified low-income community investments as specified under this } \n\line 178.20{\ul section. The commissioner shall adopt rules to establish criteria for determining grant } \n\line 178.21{\ul eligibility.} \n\line 178.22 {\ul Subd. 2.} {\ul Definitions.} {\ul (a) For purposes of this section, the following terms have } \n\line 178.23{\ul the meanings given.} \n\line 178.24{\ul (b) "Applicant" means a qualified community development entity as defined in } \n\line 178.25{\ul paragraph (h).} \n\line 178.26{\ul (c) "Commissioner" means the commissioner of employment and economic } \n\line 178.27{\ul development.} \n\line 178.28{\ul (d) "Greater Minnesota" means the area of the state that excludes the metropolitan } \n\line 178.29{\ul area, as defined in section 473.121, subdivision 2.} \n\line 178.30{\ul (e) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.} \n\line 178.31{\ul (f) "Qualified active low-income community business" has the meaning given in } \n\line 178.32{\ul section 45D of the Internal Revenue Code. The term does not include:} \n\line 178.33{\ul (1) any trade or business engaged in insurance, banking, lending, lobbying, political } \n\line 178.34{\ul consulting, or leisure; or} \n\line 179.1{\ul (2) any trade or business activity consisting of the operation of any private or } \n\line 179.2{\ul commercial golf course, country club, suntan facility, hot tub facility, massage parlor, race } \n\line 179.3{\ul track, or other facility used for gambling, or any store the principal business of which is } \n\line 179.4{\ul the sale of alcoholic beverages for consumption off premises.} \n\line 179.5 {\ul (g) "Low-income communities" as defined in section 45D of the Internal Revenue } \n\line 179.6{\ul Code and applied to any term or requirement used in this section or an incorporated } \n\line 179.7{\ul provision of federal law includes the area of any home rule charter or statutory city that:} \n\line 179.8 {\ul (1) is located in greater Minnesota;} \n\line 179.9 {\ul (2) has a population, as defined in section 477A.011, subdivision 3, of 500 or } \n\line 179.10{\ul more; and} \n\line 179.11 {\ul (3) has net tax capacity of property, classified as class 3 under section 273.13, of } \n\line 179.12{\ul less than $500 per capita for property taxes assessed in 2015, payable in 2016, including } \n\line 179.13{\ul the city's distribution net tax capacity and excluding its contribution net tax capacity } \n\line 179.14{\ul under chapter 276A.} \n\line 179.15{\ul (h) "Qualified community development entity" has the meaning given in section } \n\line 179.16{\ul 45D of the Internal Revenue Code, provided that the entity has direct lending experience } \n\line 179.17{\ul serving businesses in disadvantaged communities in the state and a primary mission of } \n\line 179.18{\ul economic development.} \n\line 179.19{\ul (i) "Qualified low-income community investment" means any capital or equity } \n\line 179.20{\ul investment in, or loan to, any qualified active low-income community business.} \n\line 179.21 {\ul Subd. 3.} {\ul Grant awards.} {\ul The commissioner shall award grants to qualified } \n\line 179.22{\ul community development entities based on a competitive review of applications received } \n\line 179.23{\ul by the commissioner using criteria established in subdivision 4. } \n\line 179.24 {\ul Subd. 4.} {\ul Application.} {\ul (a) The commissioner shall develop an application form } \n\line 179.25{\ul requiring information necessary to evaluate the benefits to Minnesota from awarding } \n\line 179.26{\ul the grants.} \n\line 179.27{\ul (b) Prior to awarding grants to an applicant under this subdivision, the commissioner } \n\line 179.28{\ul shall consider the following:} \n\line 179.29{\ul (1) whether the qualified community development entity has demonstrated } \n\line 179.30{\ul experience providing capital or technical assistance to disadvantaged businesses or } \n\line 179.31{\ul communities in the state;} \n\line 179.32{\ul (2) the extent to which an applicant demonstrates direct experience in asset and risk } \n\line 179.33{\ul management and in fulfilling government compliance requirements;} \n\line 179.34{\ul (3) the extent to which an applicant demonstrates a capitalization strategy that } \n\line 179.35{\ul ensures that the economic benefit of the grant allocation remains in the state;} \n\line 180.1{\ul (4) the extent to which the applicant establishes standards for wages and benefits } \n\line 180.2{\ul exceeding federal poverty guidelines and includes a means by which to monitor and } \n\line 180.3{\ul measure ongoing compliance with those standards;} \n\line 180.4{\ul (5) the financial contributions expected to be made to the project from nonstate } \n\line 180.5{\ul sources; and} \n\line 180.6{\ul (6) any other criteria the commissioner deems necessary.} \n\line 180.7 {\ul Subd. 5.} {\ul Annual reporting by community development entities.} {\ul A community } \n\line 180.8{\ul development entity that has been awarded a grant must submit an annual report to the } \n\line 180.9{\ul commissioner within 180 days after the end of the fiscal year. The report must include } \n\line 180.10{\ul information on investments made in the preceding year, including but not limited to the } \n\line 180.11{\ul following:} \n\line 180.12{\ul (1) the types of industries, identified by the North American Industry Classification } \n\line 180.13{\ul System Code, in which a qualified low-income community investment was made;} \n\line 180.14{\ul (2) the names of the counties in which the qualified active low-income community } \n\line 180.15{\ul businesses are located which received qualified low-income community investments;} \n\line 180.16{\ul (3) the number of jobs created and retained by qualified active low-income } \n\line 180.17{\ul community businesses receiving qualified low-income community investments, including } \n\line 180.18{\ul verification that the average wages and benefits paid to full-time employees, based on an } \n\line 180.19{\ul hourly wage for a 40-hour work week, meet or exceed 105 percent of the federal poverty } \n\line 180.20{\ul income guidelines for a family of four; and} \n\line 180.21{\ul (4) other information and documentation required by the commissioner to verify } \n\line 180.22{\ul continued certification as a qualified community development entity under United States } \n\line 180.23{\ul Code, title 26, section 45D.} \n\line 180.24 {\ul Subd. 6.} {\ul Application fees; fund created.} {\ul The qualified community development } \n\line 180.25{\ul entity must submit a nonrefundable application fee at the time the application is submitted } \n\line 180.26{\ul equal to the amount published in the Minnesota new markets grant program application. } \n\line 180.27{\ul The commissioner may allow up to 25 percent of the fee to be submitted up to 180 days } \n\line 180.28{\ul following the grant award and up to 25 percent of the fee to be submitted up to 270 days } \n\line 180.29{\ul following the grant award. Application fees are deposited in the new markets grant } \n\line 180.30{\ul program administration account in the special revenue fund.} \n\line 180.31 {\ul Subd. 7.} {\ul Administrative fees.} {\ul Upon the issuance of a qualified low-income } \n\line 180.32{\ul community investment by a qualified community development entity, an administrative } \n\line 180.33{\ul fee in an amount determined by the commissioner and published in the grant agreement } \n\line 180.34{\ul must be deposited in the new markets grant program administration account in the special } \n\line 180.35{\ul revenue fund.} \n\line 181.1 {\ul Subd. 8.} {\ul Administrative expenses.} {\ul Amounts in the new markets grant program } \n\line 181.2{\ul administration account are appropriated annually to the commissioner for administrative } \n\line 181.3{\ul expenses related to administering the new markets grant program in this section.} \n\line 181.4 {\ul Subd. 9.} {\ul Annual report.} {\ul The commissioner shall annually by January 15, 2018 } \n\line 181.5{\ul through 2023, report to the chairs and ranking minority members of the legislative } \n\line 181.6{\ul committees on economic development on the implementation of the grant program, } \n\line 181.7{\ul including an evaluation of the success and economic impact of the program in the state. } \n\line 181.8{\ul The report must include:} \n\line 181.9{\ul (1) the number of women-owned and minority-owned businesses assisted by the } \n\line 181.10{\ul grants;} \n\line 181.11{\ul (2) the number of greater Minnesota-located businesses assisted by the grants and } \n\line 181.12{\ul the amount of that assistance;} \n\line 181.13{\ul (3) the number of metropolitan area-located businesses assisted by the grants and the } \n\line 181.14{\ul amount of that assistance;} \n\line 181.15{\ul (4) the number of jobs created by the grants including the number of women and } \n\line 181.16{\ul minorities obtaining jobs; and} \n\line 181.17{\ul (5) the number of jobs created by the grants located in greater Minnesota and in the } \n\line 181.18{\ul metropolitan area.} \n\line 181.19 {\ul Subd. 10.} {\ul Expiration.} {\ul This section expires the earlier of July 1, 2024, or when the } \n\line 181.20{\ul last of the grant funds have been awarded. The commissioner must issue the rules for the } \n\line 181.21{\ul implementation of this section to allow commencement of grant awards by January 1, 2017.} \n\line 181.22{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 181.23 Sec. 3. {\ul [270C.22] TAX TIME SAVINGS GRANT PROGRAM.} \n\line 181.24 {\ul Subdivision 1.} {\ul Definitions.} {\ul (a) For purposes of this section, the following terms } \n\line 181.25{\ul have the meanings given.} \n\line 181.26{\ul (b) "Financial capability services" means any of the following:} \n\line 181.27{\ul (1) assistance with opening a savings or transactional account that meets the Federal } \n\line 181.28{\ul Deposit Insurance Corporation's model safe accounts template standards;} \n\line 181.29{\ul (2) assistance with depositing all or part of a tax refund into a savings or transactional } \n\line 181.30{\ul account;} \n\line 181.31{\ul (3) assistance with obtaining and reviewing a consumer report or credit score, as } \n\line 181.32{\ul those terms are defined in United States Code, title 15, section 1681a;} \n\line 181.33{\ul (4) assistance with obtaining and reviewing a banking history report;} \n\line 181.34{\ul (5) financial coaching, or referral to financial coaching services, as provided in } \n\line 181.35{\ul section 256E.35, subdivision 4a;} \n\line 182.1{\ul (6) National Foundation for Credit Counseling certified consumer credit and debt } \n\line 182.2{\ul counseling or referral to these services;} \n\line 182.3{\ul (7) enrollment in a matched or incentivized savings program, including the provision } \n\line 182.4{\ul of matching or incentive funds;} \n\line 182.5{\ul (8) assistance with purchasing federal retirement savings bonds, as described in } \n\line 182.6{\ul Code of Federal Regulations, title 31, part 347, or referral to a certified financial planner, } \n\line 182.7{\ul registered investment adviser, licensed insurance producer or agent, or a registered } \n\line 182.8{\ul securities broker-dealer representative for private sector retirement options; or} \n\line 182.9{\ul (9) assistance with purchasing a Series I United States Savings Bond with all or } \n\line 182.10{\ul part of a tax refund.} \n\line 182.11{\ul (c) "Transactional account" means a traditional demand deposit account or a general } \n\line 182.12{\ul purpose reloadable prepaid card offered by a bank or credit union.} \n\line 182.13{\ul (d) "TCE" means the Tax Counseling for the Elderly program established by the } \n\line 182.14{\ul Internal Revenue Service.} \n\line 182.15{\ul (e) "VITA" means the Volunteer Income Tax Assistance program established by the } \n\line 182.16{\ul Internal Revenue Service.} \n\line 182.17 {\ul Subd. 2.} {\ul Creation.} {\ul The commissioner of revenue shall establish a tax time } \n\line 182.18{\ul savings grant program to make grants to one or more nonprofit organizations to fund the } \n\line 182.19{\ul integration of financial capability services into the delivery of taxpayer assistance services } \n\line 182.20{\ul funded by grants under section 270C.21.} \n\line 182.21 {\ul Subd. 3.} {\ul Qualified applicant.} {\ul To be eligible to receive a grant under the tax time } \n\line 182.22{\ul savings grant program, an applicant must:} \n\line 182.23{\ul (1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered } \n\line 182.24{\ul with the Internal Revenue Service as part of either the VITA or TCE programs; and} \n\line 182.25{\ul (2) commit to dedicate at least one staff or volunteer position to coordinate financial } \n\line 182.26{\ul capability services at a VITA or TCE program site and to offer VITA or TCE program } \n\line 182.27{\ul participants free assistance with the initiation through completion of:} \n\line 182.28{\ul (i) opening a savings and a transactional account that meet the Federal Deposit } \n\line 182.29{\ul Insurance Corporation's model safe accounts template standards;} \n\line 182.30{\ul (ii) depositing all or part of a tax refund into a savings or transactional account; and} \n\line 182.31{\ul (iii) purchasing a Series I United States Savings Bond with all or part of a tax refund.} \n\line 182.32 {\ul Subd. 4.} {\ul Conflict of interest.} {\ul (a) No applicant may receive direct compensation } \n\line 182.33{\ul from a bank, credit union, other financial services provider, or vendor in exchange for the } \n\line 182.34{\ul applicant offering to program participants the products or services of that bank, credit } \n\line 182.35{\ul union, other financial services provider, or vendor.} \n\line 183.1{\ul (b) No applicant may receive funding from a bank, credit union, other financial } \n\line 183.2{\ul services provider, or vendor that is contingent on the applicant offering products or } \n\line 183.3{\ul services of that bank, credit union, other financial services provider, or vendor to program } \n\line 183.4{\ul participants.} \n\line 183.5{\ul (c) An applicant may receive funding from a bank, credit union, other financial } \n\line 183.6{\ul services provider, or vendor that is not in exchange for or contingent upon the applicant } \n\line 183.7{\ul offering products or services of that bank, credit union, other financial services provider, } \n\line 183.8{\ul or vendor to program participants.} \n\line 183.9 {\ul Subd. 5.} {\ul Permitted use of grant funds.} {\ul (a) A grant recipient may use grant funds } \n\line 183.10{\ul to dedicate a staff or volunteer position to coordinate financial capability services at a } \n\line 183.11{\ul VITA or TCE site and to offer VITA or TCE program participants free assistance with the } \n\line 183.12{\ul initiation through completion of:} \n\line 183.13{\ul (1) opening a savings and a transactional account that meet the Federal Deposit } \n\line 183.14{\ul Insurance Corporation's model safe accounts template standards;} \n\line 183.15{\ul (2) depositing all or part of a tax refund into a savings or transactional account; and} \n\line 183.16{\ul (3) purchasing a Series I United States Savings Bond with all or part of a tax refund.} \n\line 183.17{\ul (b) A grant recipient who offers all of the financial capability services enumerated } \n\line 183.18{\ul in paragraph (a) may also use grant funds to provide one or more additional financial } \n\line 183.19{\ul capability services to VITA or TCE program participants at no cost to the participant.} \n\line \n\line 183.20 Sec. 4. Minnesota Statutes 2014, section 271.08, subdivision 1, is amended to read: \n\line 183.21 Subdivision 1. Written order. The Tax Court, except in Small Claims Division, \n\line 183.22shall determine every appeal by written order containing findings of fact and the decision \n\line 183.23of the tax court. A memorandum of the grounds of the decision shall be appended. Notice \n\line 183.24of the entry of the order and of the substance of the decision shall be mailed to all parties. \n\line 183.25A motion for rehearing, which includes a motion for amended findings of fact, conclusions \n\line 183.26of law, or a new trial, must be served by the moving party within {\strike 15}{\ul 30} days after mailing \n\line 183.27of the notice by the court as specified in this subdivision, and the motion must be heard \n\line 183.28within {\strike 30}{\ul 60} days thereafter, unless the time for hearing is extended by the court within \n\line 183.29the {\strike 30-day}{\ul 60-day} period for good cause shown. \n\line 183.30{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 183.31 Sec. 5. Minnesota Statutes 2014, section 271.21, subdivision 2, is amended to read: \n\line 183.32 Subd. 2. Jurisdiction. At the election of the taxpayer, the Small Claims Division \n\line 183.33shall have jurisdiction only in the following matters: \n\line 183.34(a) cases involving valuation, assessment, or taxation of real or personal property, if: \n\line 184.1(i) the issue is a denial of a current year application for the homestead classification \n\line 184.2for the taxpayer's property; \n\line 184.3(ii) only one parcel is included in the petition, the entire parcel is classified as \n\line 184.4homestead class 1a or 1b under section \n\line 273.13, and the parcel contains no more than \n\line 184.5one dwelling unit; \n\line 184.6(iii) the entire property is classified as agricultural homestead class 2a or 1b under \n\line 184.7section \n\line 273.13; or \n\line 184.8(iv) the assessor's estimated market value of the property included in the petition \n\line 184.9is less than $300,000; or \n\line 184.10(b) any case not involving valuation, assessment, or taxation of real and personal \n\line 184.11property in which the amount in controversy does not exceed {\strike $5,000}{\ul $15,000}, including \n\line 184.12penalty and interest. \n\line 184.13{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 184.14 Sec. 6. Minnesota Statutes 2014, section 289A.60, is amended by adding a subdivision \n\line 184.15to read: \n\line 184.16 {\ul Subd. 32.} {\ul Sales suppression.} {\ul (a) A person who:} \n\line 184.17{\ul (1) sells;} \n\line 184.18{\ul (2) transfers;} \n\line 184.19{\ul (3) develops;} \n\line 184.20{\ul (4) manufactures; or} \n\line 184.21{\ul (5) possesses with the intent to sell or transfer}{\ul } \n\line 184.22{\ul an automated sales suppression device, zapper, phantom-ware, or similar device capable } \n\line 184.23{\ul of being used to commit tax fraud or suppress sales is liable for a civil penalty calculated } \n\line 184.24{\ul under paragraph (b).} \n\line 184.25{\ul (b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total } \n\line 184.26{\ul amount of all taxes and penalties due that are attributable to the use of any automated } \n\line 184.27{\ul sales suppression device, zapper, phantom-ware, or similar device facilitated by the sale, } \n\line 184.28{\ul transfer, development, or manufacture of the automated sales suppression device, zapper, } \n\line 184.29{\ul phantom-ware, or similar device by the person.} \n\line 184.30{\ul (c) The definitions in section 609.858 apply to this subdivision.} \n\line 184.31{\ul EFFECTIVE DATE.}{\ul This section is effective for activities enumerated in } \n\line 184.32{\ul paragraph (a) that occur after July 1, 2016.} \n\line \n\line 184.33 Sec. 7. Minnesota Statutes 2014, section 290A.03, subdivision 13, is amended to read: \n\line 185.1 Subd. 13. Property taxes payable. "Property taxes payable" means the property tax \n\line 185.2exclusive of special assessments, penalties, and interest payable on a claimant's homestead \n\line 185.3after deductions made under sections \n\line 273.135, \n\line 273.1384, \n\line 273.1391, \n\line 273.42, subdivision 2, \n\line 185.4and any other state paid property tax credits in any calendar year, and after any refund \n\line 185.5claimed and allowable under section \n\line 290A.04, subdivision 2h, that is first payable in \n\line 185.6the year that the property tax is payable. In the case of a claimant who makes ground \n\line 185.7lease payments, "property taxes payable" includes the amount of the payments directly \n\line 185.8attributable to the property taxes assessed against the parcel on which the house is located. \n\line 185.9No apportionment or reduction of the "property taxes payable" shall be required for the \n\line 185.10use of a portion of the claimant's homestead for a business purpose if the claimant does \n\line 185.11not deduct any business depreciation expenses for the use of a portion of the homestead{\ul , } \n\line 185.12{\ul or does not deduct expenses under section 280A of the Internal Revenue Code for a } \n\line 185.13{\ul business operated in the home,} in the determination of federal adjusted gross income. For \n\line 185.14homesteads which are manufactured homes as defined in section \n\line 273.125, subdivision 8, \n\line 185.15and for homesteads which are park trailers taxed as manufactured homes under section \n\line \n\line 185.16168.012, subdivision 9\n\line , "property taxes payable" shall also include 17 percent of the gross \n\line 185.17rent paid in the preceding year for the site on which the homestead is located. When \n\line 185.18a homestead is owned by two or more persons as joint tenants or tenants in common, \n\line 185.19such tenants shall determine between them which tenant may claim the property taxes \n\line 185.20payable on the homestead. If they are unable to agree, the matter shall be referred to the \n\line 185.21commissioner of revenue whose decision shall be final. Property taxes are considered \n\line 185.22payable in the year prescribed by law for payment of the taxes. \n\line 185.23In the case of a claim relating to "property taxes payable," the claimant must have \n\line 185.24owned and occupied the homestead on January 2 of the year in which the tax is payable \n\line 185.25and (i) the property must have been classified as homestead property pursuant to section \n\line \n\line 185.26273.124\n\line , on or before December 15 of the assessment year to which the "property taxes \n\line 185.27payable" relate; or (ii) the claimant must provide documentation from the local assessor \n\line 185.28that application for homestead classification has been made on or before December 15 \n\line 185.29of the year in which the "property taxes payable" were payable and that the assessor has \n\line 185.30approved the application. \n\line 185.31{\ul EFFECTIVE DATE.}{\ul This section is effective for refunds based on rent paid after } \n\line 185.32{\ul December 31, 2014, and property taxes payable after December 31, 2015.} \n\line \n\line 185.33 Sec. 8. Minnesota Statutes 2014, section 469.169, is amended by adding a subdivision \n\line 185.34to read: \n\line 186.1 {\ul Subd. 20.} {\ul Additional allocation; 2016.} {\ul In addition to the tax reductions in } \n\line 186.2{\ul subdivisions 12 to 19, $3,000,000 is allocated for tax reductions to border city enterprise } \n\line 186.3{\ul zones in cities located on the western border of the state. The commissioner shall allocate } \n\line 186.4{\ul this amount among cities on a per capita basis. Allocations under this subdivision may } \n\line 186.5{\ul be used for tax reductions under sections 469.171, 469.1732, and 469.1734, or for other } \n\line 186.6{\ul offsets of taxes imposed on or remitted by businesses located in the enterprise zone, } \n\line 186.7{\ul but only if the municipality determines that the granting of the tax reduction or offset is } \n\line 186.8{\ul necessary to retain a business within or attract a business to the zone.} \n\line 186.9{\ul EFFECTIVE DATE.}{\ul This section is effective July 1, 2016.} \n\line \n\line 186.10 Sec. 9. Minnesota Statutes 2014, section 609.5316, subdivision 3, is amended to read: \n\line 186.11 Subd. 3. Weapons, telephone cloning paraphernalia, {\ul automated sales } \n\line 186.12{\ul suppression devices, }and bullet-resistant vests. Weapons used are contraband and \n\line 186.13must be summarily forfeited to the appropriate agency upon conviction of the weapon's \n\line 186.14owner or possessor for a controlled substance crime; for any offense of this chapter \n\line 186.15or chapter 624, or for a violation of an order for protection under section \n\line 518B.01, \n\line 186.16subdivision 14\n\line . Bullet-resistant vests, as defined in section \n\line 609.486, worn or possessed \n\line 186.17during the commission or attempted commission of a crime are contraband and must be \n\line 186.18summarily forfeited to the appropriate agency upon conviction of the owner or possessor \n\line 186.19for a controlled substance crime or for any offense of this chapter. Telephone cloning \n\line 186.20paraphernalia used in a violation of section \n\line 609.894{\ul , and automated sales suppression } \n\line 186.21{\ul devices, phantom-ware, and other devices containing an automated sales suppression or } \n\line 186.22{\ul phantom-ware device or software used in violation of section 609.858,} are contraband and \n\line 186.23must be summarily forfeited to the appropriate agency upon a conviction. \n\line \n\line 186.24 Sec. 10. {\ul [609.858] USE OF AUTOMATED SALES SUPPRESSION DEVICES.} \n\line 186.25 {\ul Subdivision 1.} {\ul Definitions.} {\ul (a) For the purposes of this section, the following terms } \n\line 186.26{\ul have the meanings given.} \n\line 186.27{\ul (b) "Automated sales suppression device" or "zapper" means a software program, } \n\line 186.28{\ul carried on any tangible medium, or accessed through any other means, that falsifies the } \n\line 186.29{\ul electronic records of electronic cash registers and other point-of-sale systems including, } \n\line 186.30{\ul but not limited to, transaction data and transaction reports.} \n\line 186.31{\ul (c) "Electronic cash register" means a device that keeps a register or supporting } \n\line 186.32{\ul documents through the means of an electronic device or computer system designed to } \n\line 186.33{\ul record transaction data for the purpose of computing, compiling, or processing retail } \n\line 186.34{\ul sales transaction data in whatever manner.} \n\line 187.1{\ul (d) "Phantom-ware" means hidden preinstalled, or later-installed programming } \n\line 187.2{\ul option embedded in the operating system of an electronic cash register or hardwired } \n\line 187.3{\ul into the electronic cash register that can be used to create a virtual second electronic } \n\line 187.4{\ul cash register or may eliminate or manipulate transaction records that may or may not be } \n\line 187.5{\ul preserved in digital formats to represent the true or manipulated record of transactions in } \n\line 187.6{\ul the electronic cash register.} \n\line 187.7{\ul (e) "Transaction data" includes items purchased by a customer, the price of each } \n\line 187.8{\ul item, the taxability determination for each item, a segregated tax amount for each of } \n\line 187.9{\ul the taxed items, the date and time of the purchase, the name, address and identification } \n\line 187.10{\ul number of the vendor, and the receipt or invoice number of the transaction.} \n\line 187.11{\ul (f) "Transaction report" means a report documenting, but not limited to, the sales, } \n\line 187.12{\ul taxes collected, media totals, and discount voids at an electronic cash register that is } \n\line 187.13{\ul printed on cash register tape at the end of a day or shift, or a report documenting every } \n\line 187.14{\ul action at an electronic cash register that is stored electronically.} \n\line 187.15 {\ul Subd. 2.} {\ul Felony.} {\ul A person who sells, purchases, installs, transfers, possesses, } \n\line 187.16{\ul develops, manufactures, accesses, or uses an automated sales suppression device, zapper, } \n\line 187.17{\ul phantom-ware, or similar device knowing that the device or phantom-ware is capable } \n\line 187.18{\ul of being used to commit tax fraud or suppress sales is guilty of a felony and may be } \n\line 187.19{\ul sentenced to imprisonment for not more than five years or to a payment of a fine of not } \n\line 187.20{\ul more than $10,000, or both.} \n\line 187.21 {\ul Subd. 3.} {\ul Forfeiture.} {\ul An automated sales suppression device, zapper, phantom-ware, } \n\line 187.22{\ul and any other device containing an automated sales suppression, zapper, or phantom-ware } \n\line 187.23{\ul device or software is contraband and subject to forfeiture under section 609.5316.} \n\line 187.24{\ul EFFECTIVE DATE.}{\ul This section is effective August 1, 2015, and applies to crimes } \n\line 187.25{\ul committed on or after that date.} \n\line \n\line 187.26 Sec. 11. {\ul APPROPRIATIONS.} \n\line 187.27 {\ul Subdivision 1.} {\ul New markets grant program.} {\ul $30,000,000 in fiscal year 2017 is } \n\line 187.28{\ul appropriated from the general fund to the commissioner of employment and economic } \n\line 187.29{\ul development for the new markets grant program under Minnesota Statutes, section } \n\line 187.30{\ul 116J.952. This appropriation is a onetime appropriation and is available until June 30, } \n\line 187.31{\ul 2024. The commissioner may award grants of up to $10,000,000 per fiscal year.} \n\line 187.32 {\ul Subd. 2.} {\ul Department of Revenue.} {\ul $5,000,000 in fiscal year 2017 is appropriated } \n\line 187.33{\ul from the general fund to the commissioner of revenue for administering this act. The } \n\line 187.34{\ul funding base for this appropriation in fiscal year 2018 and thereafter is $2,000,000.} \n\line 188.1 {\ul Subd. 3.} {\ul Tax time savings grant program.} {\ul (a) $400,000 is appropriated in fiscal } \n\line 188.2{\ul year 2017 from the general fund to the commissioner of revenue to make grants under the } \n\line 188.3{\ul tax time savings grant program under Minnesota Statutes, section 270C.22. Of this amount, } \n\line 188.4{\ul up to five percent may be used for the administration of the tax time savings grant program.} \n\line 188.5{\ul (b) The base funding for the grant program authorized under paragraph (a) is } \n\line 188.6{\ul $400,000 each year.} \n\line 188.7 {\ul Subd. 4.} {\ul Taxpayer assistance grants.} {\ul (a) $400,000 is appropriated in fiscal year } \n\line 188.8{\ul 2017 from the general fund to the commissioner of revenue for the provision of taxpayer } \n\line 188.9{\ul assistance grants under Minnesota Statutes, section 270C.21, in addition to the current } \n\line 188.10{\ul base funding for the program. Of the amount appropriated under this paragraph and the } \n\line 188.11{\ul current base funding for the provision of taxpayer assistance grants, up to five percent may } \n\line 188.12{\ul be used for the administration of the taxpayer assistance grants program.} \n\line 188.13{\ul (b) Beginning in fiscal year 2018, the total base funding for the program under } \n\line 188.14{\ul paragraph (a) is $800,000 each year. This amount includes the base funding of $400,000 } \n\line 188.15{\ul each year established in Laws 2015, chapter 77, article 1, section 14, subdivision 2, } \n\line 188.16{\ul paragraph (a).} \n\line 188.17 {\ul Subd. 5.} {\ul Local government grants.} {\ul (a) The following amounts are appropriated in } \n\line 188.18{\ul fiscal year 2016 only from the general fund to the commissioner of revenue for grants that } \n\line 188.19{\ul shall be paid by June 30, 2016, and allocated as follows:} \n\line 188.20{\ul (1) $1,200,000 to the city of Madelia;} \n\line 188.21{\ul (2) $465,000 to the city of Hibbing; and} \n\line 188.22{\ul (3) $52,288 to Stearns County.} \n\line 188.23{\ul (b) The following amounts are appropriated in fiscal year 2017 only from the } \n\line 188.24{\ul general fund to the commissioner of revenue for grants that shall be paid by June 30, } \n\line 188.25{\ul 2017, and allocated as follows:} \n\line 188.26{\ul (1) $2,000,000 to Mahnomen County. Of this amount, $1,000,000 must be used } \n\line 188.27{\ul by the county for the Mahnomen Health Center, and $1,000,000 must be paid from the } \n\line 188.28{\ul county to the White Earth Band of Ojibwe;} \n\line 188.29{\ul (2) $1,130,000 to Hennepin County. Of this amount, $730,000 must be used for the } \n\line 188.30{\ul North Branch Library EMERGE Career and Technology Center, and $400,000 must be } \n\line 188.31{\ul used for the Cedar Riverside Opportunity Center;} \n\line 188.32{\ul (3) $1,000,000 to the city of Mahnomen; and} \n\line 188.33{\ul (4) $150,000 to the city of Lilydale.} \n\line 188.34{\ul (c) All of the appropriations under this subdivision are onetime and are not added } \n\line 188.35{\ul to the base budget.} \n\line 189.1{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line
189.2ARTICLE 12 \n\line \n\line
\n\line
189.3DEPARTMENT POLICY AND TECHNICAL PROVISIONS; INCOME, \n\line 189.4CORPORATE FRANCHISE, AND ESTATE TAXES \n\line \n\line
\n\line 189.5 Section 1. Minnesota Statutes 2014, section 289A.08, subdivision 11, is amended to \n\line 189.6read: \n\line 189.7 Subd. 11. Information included in income tax return. (a) The return must state: \n\line 189.8 (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the \n\line 189.9address of the taxpayer in the same name or names and same address as the taxpayer has \n\line 189.10used in making the taxpayer's income tax return to the United States; \n\line 189.11 (2) the date or dates of birth of the taxpayer or taxpayers; \n\line 189.12 (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security \n\line 189.13number has been issued by the United States with respect to the taxpayers; and \n\line 189.14 (4) the amount of the taxable income of the taxpayer as it appears on the federal \n\line 189.15return for the taxable year to which the Minnesota state return applies. \n\line 189.16 (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return \n\line 189.17a copy of the federal income tax return that the taxpayer has filed or is about to file for \n\line 189.18the period{\strike , unless the taxpayer is eligible to telefile the federal return and does file the } \n\line 189.19{\strike Minnesota return by telefiling}. \n\line 189.20{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 189.21 Sec. 2. Minnesota Statutes 2014, section 289A.08, subdivision 16, is amended to read: \n\line 189.22 Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee \n\line 189.23imposed. (a) A "tax refund or return preparer," as defined in section \n\line 289A.60, {\strike subdivision } \n\line 189.24{\strike 13}\n\line {\strike , paragraph (f),} who is a tax return preparer for purposes of section 6011(e) of the \n\line 189.25Internal Revenue Code, and who reasonably expects to prepare more than ten Minnesota \n\line 189.26individual income{\ul , corporate franchise, S corporation, partnership, or fiduciary income} tax \n\line 189.27returns for the prior {\strike calendar} year must file all Minnesota individual income{\ul , corporate } \n\line 189.28{\ul franchise, S corporation, partnership, or fiduciary income} tax returns prepared for that \n\line 189.29{\strike calendar} year by electronic means. \n\line 189.30(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return \n\line 189.31that the taxpayer did not want the return filed by electronic means. \n\line 189.32(c) For each return that is not filed electronically by a tax refund or return preparer \n\line 189.33under this subdivision, including returns filed under paragraph (b), a paper filing fee \n\line 189.34of $5 is imposed upon the preparer. The fee is collected from the preparer in the same \n\line 190.1manner as income tax. The fee does not apply to returns that the commissioner requires \n\line 190.2to be filed in paper form. \n\line 190.3{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 190.4{\ul December 31, 2015.} \n\line \n\line 190.5 Sec. 3. Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read: \n\line 190.6 Subd. 2. Withholding statement. (a) A person required to deduct and withhold \n\line 190.7from an employee a tax under section \n\line 290.92, subdivision 2a or 3, or \n\line 290.923, subdivision \n\line 190.82\n\line , or who would have been required to deduct and withhold a tax under section \n\line 290.92, \n\line 190.9subdivision 2a\n\line or 3, or persons required to withhold tax under section \n\line 290.923, subdivision \n\line 190.102\n\line , determined without regard to section \n\line 290.92, subdivision 19, if the employee or payee \n\line 190.11had claimed no more than one withholding exemption, or who paid wages or made \n\line 190.12payments not subject to withholding under section \n\line 290.92, subdivision 2a or 3, or \n\line 290.923, \n\line 190.13subdivision 2\n\line , to an employee or person receiving royalty payments in excess of $600, \n\line 190.14or who has entered into a voluntary withholding agreement with a payee under section \n\line \n\line 190.15290.92, subdivision 20\n\line , must give every employee or person receiving royalty payments in \n\line 190.16respect to the remuneration paid by the person to the employee or person receiving royalty \n\line 190.17payments during the calendar year, on or before January 31 of the succeeding year, or, if \n\line 190.18employment is terminated before the close of the calendar year, within 30 days after the \n\line 190.19date of receipt of a written request from the employee if the 30-day period ends before \n\line 190.20January 31, a written statement showing the following: \n\line 190.21 (1) name of the person; \n\line 190.22 (2) the name of the employee or payee and the employee's or payee's Social Security \n\line 190.23account number; \n\line 190.24 (3) the total amount of wages as that term is defined in section \n\line 290.92, subdivision \n\line 190.251\n\line , paragraph (1); the total amount of remuneration subject to withholding under section \n\line \n\line 190.26290.92, subdivision 20\n\line ; the amount of sick pay as required under section 6051(f) of the \n\line 190.27Internal Revenue Code; and the amount of royalties subject to withholding under section \n\line \n\line 190.28290.923, subdivision 2\n\line ; and \n\line 190.29 (4) the total amount deducted and withheld as tax under section \n\line 290.92, subdivision \n\line 190.302a\n\line or 3, or \n\line 290.923, subdivision 2. \n\line 190.31 (b) The statement required to be furnished by paragraph (a) with respect to any \n\line 190.32remuneration must be furnished at those times, must contain the information required, and \n\line 190.33must be in the form the commissioner prescribes. \n\line 191.1 (c) The commissioner may prescribe rules providing for reasonable extensions of \n\line 191.2time, not in excess of 30 days, to employers or payers required to give the statements to \n\line 191.3their employees or payees under this subdivision. \n\line 191.4 (d) A duplicate of any statement made under this subdivision and in accordance \n\line 191.5with rules prescribed by the commissioner{\strike , along with a reconciliation in the form the } \n\line 191.6{\strike commissioner prescribes of the statements for the calendar year, including a reconciliation } \n\line 191.7{\strike of the quarterly returns required to be filed under subdivision 1,} must be filed with the \n\line 191.8commissioner on or before {\strike February 28}{\ul January 31} of the year after the payments were \n\line 191.9made. \n\line 191.10 (e) If an employer cancels the employer's Minnesota withholding account number \n\line 191.11required by section \n\line 290.92, subdivision 24, the information required by paragraph (d), \n\line 191.12must be filed with the commissioner within 30 days of the end of the quarter in which \n\line 191.13the employer cancels its account number. \n\line 191.14 (f) The employer must submit the statements required to be sent to the commissioner \n\line 191.15{\strike in the same manner required to satisfy the federal reporting requirements of section } \n\line 191.16{\strike 6011(e) of the Internal Revenue Code and the regulations issued under it. An employer } \n\line 191.17{\strike must submit statements to the commissioner required by this section by electronic means } \n\line 191.18{\strike if the employer is required to send more than 25 statements to the commissioner, even } \n\line 191.19{\strike though the employer is not required to submit the returns federally by electronic means. } \n\line 191.20{\strike For statements issued for wages paid in 2011 and after, the threshold is ten. All statements } \n\line 191.21{\strike issued for withholding required under section }\n\line {\strike 290.92}{\strike are aggregated for purposes of } \n\line 191.22{\strike determining whether the electronic submission threshold is met}.{\ul The commissioner shall } \n\line 191.23{\ul prescribe the content, format, and manner of the statement pursuant to section 270C.30.} \n\line 191.24 (g) A "third-party bulk filer" as defined in section \n\line 290.92, subdivision 30, paragraph \n\line 191.25(a), clause (2), must submit the returns required by this subdivision and subdivision 1, \n\line 191.26paragraph (a), with the commissioner by electronic means. \n\line 191.27{\ul EFFECTIVE DATE.}{\ul This section is effective for statements required to be sent } \n\line 191.28{\ul to the commissioner after December 31, 2016, except that the date change in paragraph } \n\line 191.29{\ul (d) is effective for wages paid after December 31, 2015.} \n\line \n\line 191.30 Sec. 4. Minnesota Statutes 2014, section 289A.12, subdivision 14, is amended to read: \n\line 191.31 Subd. 14. {\strike Regulated investment companies;} Reporting {\ul exempt interest and } \n\line 191.32exempt-interest dividends. (a) A regulated investment company paying $10 or more in \n\line 191.33exempt-interest dividends to an individual who is a resident of Minnesota{\ul , or any person } \n\line 191.34{\ul receiving $10 or more of exempt interest or exempt-interest dividends and paying as } \n\line 191.35{\ul nominee to an individual who is a resident of Minnesota,} must make a return indicating \n\line 192.1the amount of the {\ul exempt interest or }exempt-interest dividends, the name, address, and \n\line 192.2Social Security number of the recipient, and any other information that the commissioner \n\line 192.3specifies. The return must be provided to the {\strike shareholder}{\ul recipient} by February 15 of the \n\line 192.4year following the year of the payment. The return provided to the {\strike shareholder}{\ul recipient } \n\line 192.5must include a clear statement, in the form prescribed by the commissioner, that the \n\line 192.6{\ul exempt interest or }exempt-interest dividends must be included in the computation of \n\line 192.7Minnesota taxable income. By June 1 of each year, the {\strike regulated investment company } \n\line 192.8{\ul payor} must file a copy of the return with the commissioner. \n\line 192.9 (b) For purposes of this subdivision, the following definitions apply. \n\line 192.10 (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in \n\line 192.11section 852(b)(5) of the Internal Revenue Code, but does not include the portion of \n\line 192.12exempt-interest dividends that are not required to be added to federal taxable income \n\line 192.13under section \n\line 290.01, subdivision 19a, clause (1)(ii). \n\line 192.14 (2) "Regulated investment company" means regulated investment company as \n\line 192.15defined in section 851(a) of the Internal Revenue Code or a fund of the regulated \n\line 192.16investment company as defined in section 851(g) of the Internal Revenue Code. \n\line 192.17 {\ul (3) "Exempt interest" means income on obligations of any state other than } \n\line 192.18{\ul Minnesota, or a political or governmental subdivision, municipality, or governmental } \n\line 192.19{\ul agency or instrumentality of any state other than Minnesota, and exempt from federal } \n\line 192.20{\ul income taxes under the Internal Revenue Code or any other federal statute.} \n\line 192.21{\ul EFFECTIVE DATE.}{\ul This section is effective for reports required to be filed after } \n\line 192.22{\ul December 31, 2016.} \n\line \n\line 192.23 Sec. 5. Minnesota Statutes 2014, section 289A.18, is amended by adding a subdivision \n\line 192.24to read: \n\line 192.25 {\ul Subd. 2a.} {\ul Annual withholding returns; eligible employers.} {\ul (a) An employer who } \n\line 192.26{\ul deducts and withholds an amount required to be withheld by section 290.92 may file an } \n\line 192.27{\ul annual return and make an annual payment of the amount required to be deducted and } \n\line 192.28{\ul withheld for that calendar year if the employer has received a notification under paragraph } \n\line 192.29{\ul (b). The ability to elect to file an annual return continues through the year following the } \n\line 192.30{\ul year where an employer is required to deduct and withhold more than $500.} \n\line 192.31{\ul (b) The commissioner is authorized to determine which employers are eligible to } \n\line 192.32{\ul file an annual return and to notify employers who newly qualify to file an annual return } \n\line 192.33{\ul because the amount an employer is required to deduct and withhold for that calendar year } \n\line 192.34{\ul is $500 or less based on the most recent period of four consecutive quarters for which the } \n\line 192.35{\ul commissioner has compiled data on that employer's withholding tax for that period. At the } \n\line 193.1{\ul time of notification, eligible employers may still decide to file returns and make deposits } \n\line 193.2{\ul quarterly. An employer who decides to file returns and make deposits quarterly is required } \n\line 193.3{\ul to make all returns and deposits required by this chapter and, notwithstanding paragraph } \n\line 193.4{\ul (a), is subject to all applicable penalties for failing to do so.} \n\line 193.5{\ul (c) If, at the end of any calendar month other than the last month of the calendar } \n\line 193.6{\ul year, the aggregate amount of undeposited tax withheld by an employer who has elected to } \n\line 193.7{\ul file an annual return exceeds $500, the employer must deposit the aggregate amount with } \n\line 193.8{\ul the commissioner within 30 days of the end of the calendar month.} \n\line 193.9{\ul (d) If an employer who has elected to file an annual return ceases to pay wages } \n\line 193.10{\ul for which withholding is required, the employer must file a final return and deposit any } \n\line 193.11{\ul undeposited tax within 30 days of the end of the calendar month following the month in } \n\line 193.12{\ul which the employer ceased paying wages.} \n\line 193.13{\ul (e) An employer not subject to paragraph (c) or (d) who elects to file an annual } \n\line 193.14{\ul return must file the return and pay the tax not previously deposited before February 1 of } \n\line 193.15{\ul the year following the year in which the tax was withheld.} \n\line 193.16{\ul (f) A notification to an employer regarding eligibility to file an annual return under } \n\line 193.17{\ul Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).} \n\line 193.18{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 193.19{\ul December 31, 2015.} \n\line \n\line 193.20 Sec. 6. Minnesota Statutes 2014, section 289A.20, subdivision 2, is amended to read: \n\line 193.21 Subd. 2. Withholding from wages, entertainer withholding, withholding \n\line 193.22from payments to out-of-state contractors, and withholding by partnerships, small \n\line 193.23business corporations, trusts. (a) {\ul Except as provided in section 289A.18, subdivision 2a, } \n\line 193.24a tax required to be deducted and withheld during the quarterly period must be paid on \n\line 193.25or before the last day of the month following the close of the quarterly period, unless an \n\line 193.26earlier time for payment is provided. A tax required to be deducted and withheld from \n\line 193.27compensation of an entertainer and from a payment to an out-of-state contractor must be \n\line 193.28paid on or before the date the return for such tax must be filed under section \n\line 289A.18, \n\line 193.29subdivision 2\n\line . Taxes required to be deducted and withheld by partnerships, S corporations, \n\line 193.30and trusts must be paid on a quarterly basis as estimated taxes under section \n\line 289A.25 for \n\line 193.31partnerships and trusts and under section \n\line 289A.26 for S corporations. \n\line 193.32(b) An employer who, during the previous quarter, withheld more than $1,500 of \n\line 193.33tax under section \n\line 290.92, subdivision 2a or 3, or \n\line 290.923, subdivision 2, must deposit tax \n\line 193.34withheld under those sections with the commissioner within the time allowed to deposit \n\line 193.35the employer's federal withheld employment taxes under Code of Federal Regulations, \n\line 194.1title 26, section 31.6302-1, as amended through December 31, 2001, without regard to the \n\line 194.2safe harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). \n\line 194.3Taxpayers must submit a copy of their federal notice of deposit status to the commissioner \n\line 194.4upon request by the commissioner. \n\line 194.5(c) The commissioner may prescribe by rule other return periods or deposit \n\line 194.6requirements. In prescribing the reporting period, the commissioner may classify payors \n\line 194.7according to the amount of their tax liability and may adopt an appropriate reporting \n\line 194.8period for the class that the commissioner judges to be consistent with efficient tax \n\line 194.9collection. In no event will the duration of the reporting period be more than one year. \n\line 194.10(d) If less than the correct amount of tax is paid to the commissioner, proper \n\line 194.11adjustments with respect to both the tax and the amount to be deducted must be made, \n\line 194.12without interest, in the manner and at the times the commissioner prescribes. If the \n\line 194.13underpayment cannot be adjusted, the amount of the underpayment will be assessed and \n\line 194.14collected in the manner and at the times the commissioner prescribes. \n\line 194.15(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year \n\line 194.16ending June 30, the employer must remit each required deposit for wages paid in all \n\line 194.17subsequent calendar years by electronic means. \n\line 194.18(f) A third-party bulk filer as defined in section \n\line 290.92, subdivision 30, paragraph \n\line 194.19(a), clause (2), who remits withholding deposits must remit all deposits by electronic \n\line 194.20means as provided in paragraph (e), regardless of the aggregate amount of tax withheld \n\line 194.21during a fiscal year for all of the employers. \n\line 194.22{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 194.23{\ul December 31, 2015.} \n\line \n\line 194.24 Sec. 7. Minnesota Statutes 2014, section 289A.31, subdivision 1, is amended to read: \n\line 194.25 Subdivision 1. Individual income, fiduciary income, mining company, corporate \n\line 194.26franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining \n\line 194.27company, and corporate franchise taxes, and interest and penalties, must be paid by the \n\line 194.28taxpayer upon whom the tax is imposed, except in the following cases: \n\line 194.29(1) The tax due from a decedent for that part of the taxable year in which the \n\line 194.30decedent died during which the decedent was alive and the taxes, interest, and penalty \n\line 194.31due for the prior years must be paid by the decedent's personal representative, if any. \n\line 194.32If there is no personal representative, the taxes, interest, and penalty must be paid by \n\line 194.33the transferees, as defined in section \n\line 270C.58, subdivision 3, to the extent they receive \n\line 194.34property from the decedent; \n\line 195.1(2) The tax due from an infant or other incompetent person must be paid by the \n\line 195.2person's guardian or other person authorized or permitted by law to act for the person; \n\line 195.3(3) The tax due from the estate of a decedent must be paid by the estate's personal \n\line 195.4representative; \n\line 195.5(4) The tax due from a trust, including those within the definition of a corporation, as \n\line 195.6defined in section \n\line 290.01, subdivision 4, must be paid by a trustee; and \n\line 195.7(5) The tax due from a taxpayer whose business or property is in charge of a receiver, \n\line 195.8trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge of \n\line 195.9the business or property so far as the tax is due to the income from the business or property. \n\line 195.10(b) Entertainment taxes are the joint and several liability of the entertainer and the \n\line 195.11entertainment entity. The payor is liable to the state for the payment of the tax required to \n\line 195.12be deducted and withheld under section \n\line 290.9201, subdivision 7, and is not liable to the \n\line 195.13entertainer for the amount of the payment. \n\line 195.14(c) The {\strike tax}{\ul taxes} imposed under {\strike section}{\ul sections 289A.35 and} \n\line 290.0922 on \n\line 195.15partnerships {\strike is}{\ul are} the joint and several liability of the partnership and the general partners. \n\line 195.16{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 195.17 Sec. 8. Minnesota Statutes 2014, section 289A.35, is amended to read: \n\line 195.18289A.35 ASSESSMENTS ON RETURNS. \n\line 195.19(a) The commissioner may audit and adjust the taxpayer's computation of federal \n\line 195.20taxable income, items of federal tax preferences, or federal credit amounts to make them \n\line 195.21conform with the provisions of chapter 290 or section \n\line 298.01. If a return has been filed, \n\line 195.22the commissioner shall enter the liability reported on the return and may make any audit \n\line 195.23or investigation that is considered necessary. \n\line 195.24{\ul (b) Upon petition by a taxpayer, and when the commissioner determines that it is in } \n\line 195.25{\ul the best interest of the state, the commissioner may allow S corporations and partnerships } \n\line 195.26{\ul to receive orders of assessment issued under section 270C.33, subdivision 4, on behalf } \n\line 195.27{\ul of their owners, and to pay liabilities shown on such orders. In such cases, the owners' } \n\line 195.28{\ul liability must be calculated using the method provided in section 289A.08, subdivision 7, } \n\line 195.29{\ul paragraph (b).} \n\line 195.30{\ul (c) A taxpayer may petition the commissioner for the use of the method described } \n\line 195.31{\ul in paragraph (b) after the taxpayer is notified that an audit has been initiated and before } \n\line 195.32{\ul an order of assessment has been issued.} \n\line 195.33{\ul (d) A determination of the commissioner under paragraph (b) to grant or deny the } \n\line 195.34{\ul petition of a taxpayer cannot be appealed to the Tax Court or any other court.} \n\line 196.1{\strike (b)}{\ul (e)} The commissioner may audit and adjust the taxpayer's computation of \n\line 196.2tax under chapter 291. In the case of a return filed pursuant to section \n\line 289A.10, the \n\line 196.3commissioner shall notify the estate no later than nine months after the filing date, as \n\line 196.4provided by section \n\line 289A.38, subdivision 2, whether the return is under examination \n\line 196.5or the return has been processed as filed. \n\line 196.6{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 196.7 Sec. 9. Minnesota Statutes 2014, section 289A.60, subdivision 28, is amended to read: \n\line 196.8 Subd. 28. Preparer identification number. Any Minnesota {\strike individual} income tax \n\line 196.9return or claim for refund prepared by a "tax refund or return preparer" as defined in \n\line 196.10subdivision 13, paragraph (f), shall bear the identification number the preparer is required \n\line 196.11to use federally under section 6109(a)(4) of the Internal Revenue Code. A tax refund or \n\line 196.12return preparer who prepares a Minnesota {\strike individual income tax return}{\ul return required } \n\line 196.13{\ul by section 289A.08, subdivisions 1, 2, 3, and 7; or 289A.12, subdivision 3,} or claim for \n\line 196.14refund and fails to include the required number on the return or claim is subject to a \n\line 196.15penalty of $50 for each failure. \n\line 196.16{\ul EFFECTIVE DATE.}{\ul This section is effective for taxable years beginning after } \n\line 196.17{\ul December 31, 2015.} \n\line \n\line 196.18 Sec. 10. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read: \n\line 196.19 Subd. 19b. Subtractions from federal taxable income. For individuals, estates, \n\line 196.20and trusts, there shall be subtracted from federal taxable income: \n\line 196.21 (1) net interest income on obligations of any authority, commission, or \n\line 196.22instrumentality of the United States to the extent includable in taxable income for federal \n\line 196.23income tax purposes but exempt from state income tax under the laws of the United States; \n\line 196.24 (2) if included in federal taxable income, the amount of any overpayment of income \n\line 196.25tax to Minnesota or to any other state, for any previous taxable year, whether the amount \n\line 196.26is received as a refund or as a credit to another taxable year's income tax liability; \n\line 196.27 (3) the amount paid to others, less the amount used to claim the credit allowed under \n\line 196.28section \n\line 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten \n\line 196.29to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and \n\line 196.30transportation of each qualifying child in attending an elementary or secondary school \n\line 196.31situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a \n\line 196.32resident of this state may legally fulfill the state's compulsory attendance laws, which \n\line 196.33is not operated for profit, and which adheres to the provisions of the Civil Rights Act \n\line 197.1of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or \n\line 197.2tuition as defined in section \n\line 290.0674, subdivision 1, clause (1). As used in this clause, \n\line 197.3"textbooks" includes books and other instructional materials and equipment purchased \n\line 197.4or leased for use in elementary and secondary schools in teaching only those subjects \n\line 197.5legally and commonly taught in public elementary and secondary schools in this state. \n\line 197.6Equipment expenses qualifying for deduction includes expenses as defined and limited in \n\line 197.7section \n\line 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional \n\line 197.8books and materials used in the teaching of religious tenets, doctrines, or worship, the \n\line 197.9purpose of which is to instill such tenets, doctrines, or worship, nor does it include books \n\line 197.10or materials for, or transportation to, extracurricular activities including sporting events, \n\line 197.11musical or dramatic events, speech activities, driver's education, or similar programs. No \n\line 197.12deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or \n\line 197.13the qualifying child's vehicle to provide such transportation for a qualifying child. For \n\line 197.14purposes of the subtraction provided by this clause, "qualifying child" has the meaning \n\line 197.15given in section 32(c)(3) of the Internal Revenue Code; \n\line 197.16 (4) income as provided under section \n\line 290.0802; \n\line 197.17 (5) to the extent included in federal adjusted gross income, income realized on \n\line 197.18disposition of property exempt from tax under section \n\line 290.491; \n\line 197.19 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) \n\line 197.20of the Internal Revenue Code in determining federal taxable income by an individual \n\line 197.21who does not itemize deductions for federal income tax purposes for the taxable year, an \n\line 197.22amount equal to 50 percent of the excess of charitable contributions over $500 allowable \n\line 197.23as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, \n\line 197.24under the provisions of Public Law 109-1 and Public Law 111-126; \n\line 197.25 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not \n\line 197.26qualify for a credit under section \n\line 290.06, subdivision 22, an amount equal to the carryover \n\line 197.27of subnational foreign taxes for the taxable year, but not to exceed the total subnational \n\line 197.28foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, \n\line 197.29"federal foreign tax credit" means the credit allowed under section 27 of the Internal \n\line 197.30Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed \n\line 197.31under section 904(c) of the Internal Revenue Code minus national level foreign taxes to \n\line 197.32the extent they exceed the federal foreign tax credit; \n\line 197.33 (8) in each of the five tax years immediately following the tax year in which an \n\line 197.34addition is required under subdivision 19a, clause (7), or 19c, clause {\strike (12)}{\ul (11)}, in the case of \n\line 197.35a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the \n\line 197.36delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount \n\line 198.1of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, \n\line 198.2clause {\strike (12)}{\ul (11)}, in the case of a shareholder of an S corporation, minus the positive value \n\line 198.3of any net operating loss under section 172 of the Internal Revenue Code generated for the \n\line 198.4tax year of the addition. The resulting delayed depreciation cannot be less than zero; \n\line 198.5 (9) job opportunity building zone income as provided under section \n\line 469.316; \n\line 198.6 (10) to the extent included in federal taxable income, the amount of compensation \n\line 198.7paid to members of the Minnesota National Guard or other reserve components of the \n\line 198.8United States military for active service, including compensation for services performed \n\line 198.9under the Active Guard Reserve (AGR) program. For purposes of this clause, "active \n\line 198.10service" means (i) state active service as defined in section \n\line 190.05, subdivision 5a, clause \n\line 198.11(1); or (ii) federally funded state active service as defined in section \n\line 190.05, subdivision \n\line 198.125b\n\line , and "active service" includes service performed in accordance with section \n\line 190.08, \n\line 198.13subdivision 3\n\line ; \n\line 198.14 (11) to the extent included in federal taxable income, the amount of compensation \n\line 198.15paid to Minnesota residents who are members of the armed forces of the United States \n\line 198.16or United Nations for active duty performed under United States Code, title 10; or the \n\line 198.17authority of the United Nations; \n\line 198.18 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a \n\line 198.19qualified donor's donation, while living, of one or more of the qualified donor's organs \n\line 198.20to another person for human organ transplantation. For purposes of this clause, "organ" \n\line 198.21means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; \n\line 198.22"human organ transplantation" means the medical procedure by which transfer of a human \n\line 198.23organ is made from the body of one person to the body of another person; "qualified \n\line 198.24expenses" means unreimbursed expenses for both the individual and the qualified donor \n\line 198.25for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses \n\line 198.26may be subtracted under this clause only once; and "qualified donor" means the individual \n\line 198.27or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An \n\line 198.28individual may claim the subtraction in this clause for each instance of organ donation for \n\line 198.29transplantation during the taxable year in which the qualified expenses occur; \n\line 198.30 (13) in each of the five tax years immediately following the tax year in which an \n\line 198.31addition is required under subdivision 19a, clause (8), or 19c, clause {\strike (13)}{\ul (12)}, in the case \n\line 198.32of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of \n\line 198.33the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause {\strike (13) } \n\line 198.34{\ul (12)}, in the case of a shareholder of a corporation that is an S corporation, minus the \n\line 198.35positive value of any net operating loss under section 172 of the Internal Revenue Code \n\line 199.1generated for the tax year of the addition. If the net operating loss exceeds the addition for \n\line 199.2the tax year, a subtraction is not allowed under this clause; \n\line 199.3 (14) to the extent included in the federal taxable income of a nonresident of \n\line 199.4Minnesota, compensation paid to a service member as defined in United States Code, title \n\line 199.510, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief \n\line 199.6Act, Public Law 108-189, section 101(2); \n\line 199.7 (15) to the extent included in federal taxable income, the amount of national service \n\line 199.8educational awards received from the National Service Trust under United States Code, \n\line 199.9title 42, sections 12601 to 12604, for service in an approved Americorps National Service \n\line 199.10program; \n\line 199.11(16) to the extent included in federal taxable income, discharge of indebtedness \n\line 199.12income resulting from reacquisition of business indebtedness included in federal taxable \n\line 199.13income under section 108(i) of the Internal Revenue Code. This subtraction applies only \n\line 199.14to the extent that the income was included in net income in a prior year as a result of the \n\line 199.15addition under subdivision 19a, clause (13); \n\line 199.16(17) the amount of the net operating loss allowed under section \n\line 290.095, subdivision \n\line 199.1711\n\line , paragraph (c); \n\line 199.18(18) the amount of expenses not allowed for federal income tax purposes due \n\line 199.19to claiming the railroad track maintenance credit under section 45G(a) of the Internal \n\line 199.20Revenue Code; \n\line 199.21(19) the amount of the limitation on itemized deductions under section 68(b) of the \n\line 199.22Internal Revenue Code; \n\line 199.23(20) the amount of the phaseout of personal exemptions under section 151(d) of \n\line 199.24the Internal Revenue Code; and \n\line 199.25(21) to the extent included in federal taxable income, the amount of qualified \n\line 199.26transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal \n\line 199.27Revenue Code. The subtraction is limited to the lesser of the amount of qualified \n\line 199.28transportation fringe benefits received in excess of the limitations under section \n\line 199.29132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the \n\line 199.30maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal \n\line 199.31Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) \n\line 199.32of the Internal Revenue Code. \n\line 199.33{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 199.34 Sec. 11. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read: \n\line 200.1 Subd. 19c. Corporations; additions to federal taxable income. For corporations, \n\line 200.2there shall be added to federal taxable income: \n\line 200.3 (1) the amount of any deduction taken for federal income tax purposes for income, \n\line 200.4excise, or franchise taxes based on net income or related minimum taxes, including but not \n\line 200.5limited to the tax imposed under section \n\line 290.0922, paid by the corporation to Minnesota, \n\line 200.6another state, a political subdivision of another state, the District of Columbia, or any \n\line 200.7foreign country or possession of the United States; \n\line 200.8 (2) interest not subject to federal tax upon obligations of: the United States, its \n\line 200.9possessions, its agencies, or its instrumentalities; the state of Minnesota or any other \n\line 200.10state, any of its political or governmental subdivisions, any of its municipalities, or any \n\line 200.11of its governmental agencies or instrumentalities; the District of Columbia; or Indian \n\line 200.12tribal governments; \n\line 200.13 (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal \n\line 200.14Revenue Code; \n\line 200.15 (4) the amount of any net operating loss deduction taken for federal income tax \n\line 200.16purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss \n\line 200.17deduction under section 810 of the Internal Revenue Code; \n\line 200.18 (5) the amount of any special deductions taken for federal income tax purposes \n\line 200.19under sections 241 to 247 and 965 of the Internal Revenue Code; \n\line 200.20 (6) losses from the business of mining, as defined in section \n\line 290.05, subdivision 1, \n\line 200.21clause (a), that are not subject to Minnesota income tax; \n\line 200.22 (7) the amount of any capital losses deducted for federal income tax purposes under \n\line 200.23sections 1211 and 1212 of the Internal Revenue Code; \n\line 200.24 (8) the amount of percentage depletion deducted under sections 611 through 614 and \n\line 200.25291 of the Internal Revenue Code; \n\line 200.26 {\strike (9) for certified pollution control facilities placed in service in a taxable year } \n\line 200.27{\strike beginning before December 31, 1986, and for which amortization deductions were elected } \n\line 200.28{\strike under section 169 of the Internal Revenue Code of 1954, as amended through December } \n\line 200.29{\strike 31, 1985, the amount of the amortization deduction allowed in computing federal taxable } \n\line 200.30{\strike income for those facilities;} \n\line 200.31 {\strike (10)}{\ul (9)} the amount of a partner's pro rata share of net income which does not flow \n\line 200.32through to the partner because the partnership elected to pay the tax on the income under \n\line 200.33section 6242(a)(2) of the Internal Revenue Code; \n\line 200.34 {\strike (11)}{\ul (10)} any increase in subpart F income, as defined in section 952(a) of the \n\line 200.35Internal Revenue Code, for the taxable year when subpart F income is calculated without \n\line 200.36regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343; \n\line 201.1 {\strike (12)}{\ul (11)} 80 percent of the depreciation deduction allowed under section \n\line 201.2168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if \n\line 201.3the taxpayer has an activity that in the taxable year generates a deduction for depreciation \n\line 201.4under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable \n\line 201.5year that the taxpayer is not allowed to claim for the taxable year, "the depreciation \n\line 201.6allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess \n\line 201.7of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) \n\line 201.8over the amount of the loss from the activity that is not allowed in the taxable year. In \n\line 201.9succeeding taxable years when the losses not allowed in the taxable year are allowed, the \n\line 201.10depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed; \n\line 201.11 {\strike (13)}{\ul (12)} 80 percent of the amount by which the deduction allowed by section 179 of \n\line 201.12the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal \n\line 201.13Revenue Code of 1986, as amended through December 31, 2003; \n\line 201.14 {\strike (14)}{\ul (13)} to the extent deducted in computing federal taxable income, the amount of \n\line 201.15the deduction allowable under section 199 of the Internal Revenue Code; \n\line 201.16 {\strike (15)}{\ul (14)} the amount of expenses disallowed under section \n\line 290.10, subdivision 2; and \n\line 201.17{\strike (16)}{\ul (15)} discharge of indebtedness income resulting from reacquisition of business \n\line 201.18indebtedness and deferred under section 108(i) of the Internal Revenue Code. \n\line 201.19{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 201.20 Sec. 12. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read: \n\line 201.21 Subd. 19d. Corporations; modifications decreasing federal taxable income. For \n\line 201.22corporations, there shall be subtracted from federal taxable income after the increases \n\line 201.23provided in subdivision 19c: \n\line 201.24 (1) the amount of foreign dividend gross-up added to gross income for federal \n\line 201.25income tax purposes under section 78 of the Internal Revenue Code; \n\line 201.26 (2) the amount of salary expense not allowed for federal income tax purposes due to \n\line 201.27claiming the work opportunity credit under section 51 of the Internal Revenue Code; \n\line 201.28 (3) any dividend (not including any distribution in liquidation) paid within the \n\line 201.29taxable year by a national or state bank to the United States, or to any instrumentality of \n\line 201.30the United States exempt from federal income taxes, on the preferred stock of the bank \n\line 201.31owned by the United States or the instrumentality; \n\line 201.32 (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the \n\line 201.33Internal Revenue Code, except that: \n\line 201.34 (i) for capital losses incurred in taxable years beginning after December 31, 1986, \n\line 201.35capital loss carrybacks shall not be allowed; \n\line 202.1 (ii) for capital losses incurred in taxable years beginning after December 31, 1986, \n\line 202.2a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be \n\line 202.3allowed; \n\line 202.4 (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a \n\line 202.5capital loss carryback to each of the three taxable years preceding the loss year, subject to \n\line 202.6the provisions of Minnesota Statutes 1986, section \n\line 290.16, shall be allowed; and \n\line 202.7 (iv) for capital losses incurred in taxable years beginning before January 1, 1987, \n\line 202.8a capital loss carryover to each of the five taxable years succeeding the loss year to the \n\line 202.9extent such loss was not used in a prior taxable year and subject to the provisions of \n\line 202.10Minnesota Statutes 1986, section \n\line 290.16, shall be allowed; \n\line 202.11 (5) an amount for interest and expenses relating to income not taxable for federal \n\line 202.12income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and \n\line 202.13expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or \n\line 202.14291 of the Internal Revenue Code in computing federal taxable income; \n\line 202.15 (6) in the case of mines, oil and gas wells, other natural deposits, and timber for \n\line 202.16which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a \n\line 202.17reasonable allowance for depletion based on actual cost. In the case of leases the deduction \n\line 202.18must be apportioned between the lessor and lessee in accordance with rules prescribed \n\line 202.19by the commissioner. In the case of property held in trust, the allowable deduction must \n\line 202.20be apportioned between the income beneficiaries and the trustee in accordance with the \n\line 202.21pertinent provisions of the trust, or if there is no provision in the instrument, on the basis \n\line 202.22of the trust's income allocable to each; \n\line 202.23 {\strike (7) for certified pollution control facilities placed in service in a taxable year } \n\line 202.24{\strike beginning before December 31, 1986, and for which amortization deductions were elected } \n\line 202.25{\strike under section 169 of the Internal Revenue Code of 1954, as amended through December } \n\line 202.26{\strike 31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes } \n\line 202.27{\strike 1986, section }\n\line {\strike 290.09, subdivision 7}{\strike ;} \n\line 202.28 {\strike (8)}{\ul (7)} amounts included in federal taxable income that are due to refunds of \n\line 202.29income, excise, or franchise taxes based on net income or related minimum taxes paid \n\line 202.30by the corporation to Minnesota, another state, a political subdivision of another state, \n\line 202.31the District of Columbia, or a foreign country or possession of the United States to the \n\line 202.32extent that the taxes were added to federal taxable income under subdivision 19c, clause \n\line 202.33(1), in a prior taxable year; \n\line 202.34 {\strike (9)}{\ul (8)} income or gains from the business of mining as defined in section \n\line 290.05, \n\line 202.35subdivision 1\n\line , clause (a), that are not subject to Minnesota franchise tax; \n\line 203.1 {\strike (10)}{\ul (9)} the amount of disability access expenditures in the taxable year which are not \n\line 203.2allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code; \n\line 203.3 {\strike (11)}{\ul (10)} the amount of qualified research expenses not allowed for federal income \n\line 203.4tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent \n\line 203.5that the amount exceeds the amount of the credit allowed under section \n\line 290.068; \n\line 203.6 {\strike (12)}{\ul (11)} the amount of salary expenses not allowed for federal income tax purposes \n\line 203.7due to claiming the Indian employment credit under section 45A(a) of the Internal \n\line 203.8Revenue Code; \n\line 203.9 {\strike (13)}{\ul (12)} any decrease in subpart F income, as defined in section 952(a) of the \n\line 203.10Internal Revenue Code, for the taxable year when subpart F income is calculated without \n\line 203.11regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343; \n\line 203.12 {\strike (14)}{\ul (13)} in each of the five tax years immediately following the tax year in which an \n\line 203.13addition is required under subdivision 19c, clause {\strike (12)}{\ul (11)}, an amount equal to one-fifth \n\line 203.14of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the \n\line 203.15amount of the addition made by the taxpayer under subdivision 19c, clause {\strike (12)}{\ul (11)}. The \n\line 203.16resulting delayed depreciation cannot be less than zero; \n\line 203.17 {\strike (15)}{\ul (14)} in each of the five tax years immediately following the tax year in which an \n\line 203.18addition is required under subdivision 19c, clause {\strike (13)}{\ul (12)}, an amount equal to one-fifth \n\line 203.19of the amount of the addition; \n\line 203.20{\strike (16)}{\ul (15)} to the extent included in federal taxable income, discharge of indebtedness \n\line 203.21income resulting from reacquisition of business indebtedness included in federal taxable \n\line 203.22income under section 108(i) of the Internal Revenue Code. This subtraction applies only \n\line 203.23to the extent that the income was included in net income in a prior year as a result of the \n\line 203.24addition under subdivision 19c, clause {\strike (16)}{\ul (15)}; and \n\line 203.25{\strike (17)}{\ul (16)} the amount of expenses not allowed for federal income tax purposes due \n\line 203.26to claiming the railroad track maintenance credit under section 45G(a) of the Internal \n\line 203.27Revenue Code. \n\line 203.28{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 203.29 Sec. 13. Minnesota Statutes 2014, section 290.0672, subdivision 1, is amended to read: \n\line 203.30 Subdivision 1. Definitions. (a) For purposes of this section, the following terms \n\line 203.31have the meanings given. \n\line 203.32(b) "Long-term care insurance" means a policy that: \n\line 203.33(1) qualifies for a deduction under section 213 of the Internal Revenue Code, \n\line 203.34disregarding the {\strike 7.5 percent}{\ul adjusted gross} income test; or meets the requirements \n\line 204.1given in section \n\line 62A.46; or provides similar coverage issued under the laws of another \n\line 204.2jurisdiction; and \n\line 204.3(2) has a lifetime long-term care benefit limit of not less than $100,000; and \n\line 204.4(3) has been offered in compliance with the inflation protection requirements of \n\line 204.5section \n\line 62S.23. \n\line 204.6(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse. \n\line 204.7(d) "Premiums deducted in determining federal taxable income" means the lesser of \n\line 204.8(1) long-term care insurance premiums that qualify as deductions under section 213 of \n\line 204.9the Internal Revenue Code; and (2) the total amount deductible for medical care under \n\line 204.10section 213 of the Internal Revenue Code. \n\line 204.11{\ul EFFECTIVE DATE.}{\ul This section is effective retroactively for taxable years } \n\line 204.12{\ul beginning after December 31, 2012.} \n\line \n\line 204.13 Sec. 14. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read: \n\line 204.14 Subd. 2. Definitions. For purposes of this section, the following terms have the \n\line 204.15meanings given. \n\line 204.16 (a) "Qualified research expenses" means (i) qualified research expenses and basic \n\line 204.17research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except \n\line 204.18it does not include expenses incurred for qualified research or basic research conducted \n\line 204.19outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue \n\line 204.20Code; and (ii) contributions to a nonprofit corporation established and operated pursuant \n\line 204.21to the provisions of chapter 317A for the purpose of promoting the establishment and \n\line 204.22expansion of business in this state, provided the contributions are invested by the nonprofit \n\line 204.23corporation for the purpose of providing funds for small, technologically innovative \n\line 204.24enterprises in Minnesota during the early stages of their development. \n\line 204.25 (b) "Qualified research" means qualified research as defined in section 41(d) of the \n\line 204.26Internal Revenue Code, except that the term does not include qualified research conducted \n\line 204.27outside the state of Minnesota. \n\line 204.28 (c) "Base amount" means base amount as defined in section 41(c) of the Internal \n\line 204.29Revenue Code, except that the average annual gross receipts {\ul and aggregate gross receipts } \n\line 204.30must be calculated using Minnesota sales or receipts under section \n\line 290.191 and the \n\line 204.31definitions contained in {\strike clauses}{\ul paragraphs} (a) and (b) shall apply. \n\line 204.32{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 204.33 Sec. 15. Minnesota Statutes 2014, section 290.091, subdivision 3, is amended to read: \n\line 205.1 Subd. 3. Exemption amount. (a) For purposes of computing the alternative \n\line 205.2minimum tax, the exemption amount is, for taxable years beginning after December 31, \n\line 205.32005, $60,000 for married couples filing joint returns, $30,000 for married individuals \n\line 205.4filing separate returns, estates, and trusts, and $45,000 for unmarried individuals. \n\line 205.5 (b) The exemption amount determined under this subdivision is subject to the phase \n\line 205.6out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum \n\line 205.7taxable income as determined under this section must be substituted in the computation of \n\line 205.8the phase out. \n\line 205.9 (c) For taxable years beginning after December 31, 2006, the exemption amount \n\line 205.10under paragraph (a){\strike , clause (2),} must be adjusted for inflation. The commissioner shall \n\line 205.11adjust the exemption amount by the percentage determined pursuant to the provisions of \n\line 205.12section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2005" \n\line 205.13shall be substituted for the word "1992." For 2007, the commissioner shall then determine \n\line 205.14the percent change from the 12 months ending on August 31, 2005, to the 12 months \n\line 205.15ending on August 31, 2006, and in each subsequent year, from the 12 months ending on \n\line 205.16August 31, 2005, to the 12 months ending on August 31 of the year preceding the taxable \n\line 205.17year. The exemption amount as adjusted must be rounded to the nearest $10. If the amount \n\line 205.18ends in $5, it must be rounded up to the nearest $10 amount. The determination of the \n\line 205.19commissioner under this subdivision is not a rule under the Administrative Procedure Act. \n\line 205.20{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 205.21 Sec. 16. Minnesota Statutes 2014, section 290.0921, subdivision 3, is amended to read: \n\line 205.22 Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable \n\line 205.23income" is Minnesota net income as defined in section \n\line 290.01, subdivision 19, and \n\line 205.24includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), \n\line 205.25(f), and (h) of the Internal Revenue Code. If a corporation files a separate company \n\line 205.26Minnesota tax return, the minimum tax must be computed on a separate company basis. \n\line 205.27If a corporation is part of a tax group filing a unitary return, the minimum tax must be \n\line 205.28computed on a unitary basis. The following adjustments must be made. \n\line 205.29(1) The portion of the depreciation deduction allowed for federal income tax \n\line 205.30purposes under section 168(k) of the Internal Revenue Code that is required as an addition \n\line 205.31under section \n\line 290.01, subdivision 19c, clause {\strike (12)}{\ul (11)}, is disallowed in determining \n\line 205.32alternative minimum taxable income. \n\line 205.33(2) The subtraction for depreciation allowed under section \n\line 290.01, subdivision \n\line 205.3419d\n\line , clause {\strike (14)}{\ul (13)}, is allowed as a depreciation deduction in determining alternative \n\line 205.35minimum taxable income. \n\line 206.1(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) \n\line 206.2of the Internal Revenue Code does not apply. \n\line 206.3(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal \n\line 206.4Revenue Code does not apply. \n\line 206.5(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue \n\line 206.6Code does not apply. \n\line 206.7(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal \n\line 206.8Revenue Code does not apply. \n\line 206.9(7) The tax preference for charitable contributions of appreciated property under \n\line 206.10section 57(a)(6) of the Internal Revenue Code does not apply. \n\line 206.11(8) For purposes of calculating the adjustment for adjusted current earnings in \n\line 206.12section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable \n\line 206.13income" as it is used in section 56(g) of the Internal Revenue Code, means alternative \n\line 206.14minimum taxable income as defined in this subdivision, determined without regard to the \n\line 206.15adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code. \n\line 206.16(9) For purposes of determining the amount of adjusted current earnings under \n\line 206.17section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section \n\line 206.1856(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend \n\line 206.19gross-up subtracted as provided in section \n\line 290.01, subdivision 19d, clause (1), or (ii) the \n\line 206.20amount of refunds of income, excise, or franchise taxes subtracted as provided in section \n\line \n\line 206.21290.01, subdivision 19d\n\line , clause {\strike (8)}{\ul (7)}. \n\line 206.22(10) Alternative minimum taxable income excludes the income from operating in a \n\line 206.23job opportunity building zone as provided under section \n\line 469.317. \n\line 206.24Items of tax preference must not be reduced below zero as a result of the \n\line 206.25modifications in this subdivision. \n\line 206.26{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 206.27 Sec. 17. Minnesota Statutes 2014, section 290.17, subdivision 2, is amended to read: \n\line 206.28 Subd. 2. Income not derived from conduct of a trade or business. The income of \n\line 206.29a taxpayer subject to the allocation rules that is not derived from the conduct of a trade or \n\line 206.30business must be assigned in accordance with paragraphs (a) to (f): \n\line 206.31 (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in \n\line 206.32section 3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the \n\line 206.33extent that, the work of the employee is performed within it; all other income from such \n\line 206.34sources is treated as income from sources without this state. \n\line 207.1 Severance pay shall be considered income from labor or personal or professional \n\line 207.2services. \n\line 207.3 (2) In the case of an individual who is a nonresident of Minnesota and who is an \n\line 207.4athlete or entertainer, income from compensation for labor or personal services performed \n\line 207.5within this state shall be determined in the following manner: \n\line 207.6 (i) The amount of income to be assigned to Minnesota for an individual who is a \n\line 207.7nonresident salaried athletic team employee shall be determined by using a fraction in \n\line 207.8which the denominator contains the total number of days in which the individual is under \n\line 207.9a duty to perform for the employer, and the numerator is the total number of those days \n\line 207.10spent in Minnesota. For purposes of this paragraph, off-season training activities, unless \n\line 207.11conducted at the team's facilities as part of a team imposed program, are not included in \n\line 207.12the total number of duty days. Bonuses earned as a result of play during the regular season \n\line 207.13or for participation in championship, play-off, or all-star games must be allocated under \n\line 207.14the formula. Signing bonuses are not subject to allocation under the formula if they are \n\line 207.15not conditional on playing any games for the team, are payable separately from any other \n\line 207.16compensation, and are nonrefundable; and \n\line 207.17 (ii) The amount of income to be assigned to Minnesota for an individual who is a \n\line 207.18nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's \n\line 207.19athletic or entertainment performance in Minnesota shall be determined by assigning to \n\line 207.20this state all income from performances or athletic contests in this state. \n\line 207.21 (3) For purposes of this section, amounts received by a nonresident as "retirement \n\line 207.22income" as defined in section (b)(1) of the State Income Taxation of Pension Income \n\line 207.23Act, Public Law 104-95, are not considered income derived from carrying on a trade \n\line 207.24or business or from wages or other compensation for work an employee performed in \n\line 207.25Minnesota, and are not taxable under this chapter. \n\line 207.26 (b) Income or gains from tangible property located in this state that is not employed \n\line 207.27in the business of the recipient of the income or gains must be assigned to this state. \n\line 207.28 (c) Income or gains from intangible personal property not employed in the business \n\line 207.29of the recipient of the income or gains must be assigned to this state if the recipient of the \n\line 207.30income or gains is a resident of this state or is a resident trust or estate. \n\line 207.31 Gain on the sale of a partnership interest is allocable to this state in the ratio of the \n\line 207.32original cost of partnership tangible property in this state to the original cost of partnership \n\line 207.33tangible property everywhere, determined at the time of the sale. If more than 50 percent \n\line 207.34of the value of the partnership's assets consists of intangibles, gain or loss from the sale \n\line 207.35of the partnership interest is allocated to this state in accordance with the sales factor of \n\line 208.1the partnership for its first full tax period immediately preceding the tax period of the \n\line 208.2partnership during which the partnership interest was sold. \n\line 208.3Gain on the sale of an interest in a single member limited liability company that \n\line 208.4is disregarded for federal income tax purposes is allocable to this state as if the single \n\line 208.5member limited liability company did not exist and the assets of the limited liability \n\line 208.6company are personally owned by the sole member. \n\line 208.7 Gain on the sale of goodwill or income from a covenant not to compete that is \n\line 208.8connected with a business operating all or partially in Minnesota is allocated to this state \n\line 208.9to the extent that the income from the business in the year preceding the year of sale was \n\line 208.10{\strike assignable}{\ul allocable} to Minnesota under subdivision 3. \n\line 208.11 When an employer pays an employee for a covenant not to compete, the income \n\line 208.12allocated to this state is in the ratio of the employee's service in Minnesota in the calendar \n\line 208.13year preceding leaving the employment of the employer over the total services performed \n\line 208.14by the employee for the employer in that year. \n\line 208.15 (d) Income from winnings on a bet made by an individual while in Minnesota is \n\line 208.16assigned to this state. In this paragraph, "bet" has the meaning given in section \n\line 609.75, \n\line 208.17subdivision 2\n\line , as limited by section \n\line 609.75, subdivision 3, clauses (1), (2), and (3). \n\line 208.18 (e) All items of gross income not covered in paragraphs (a) to (d) and not part of the \n\line 208.19taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile. \n\line 208.20 (f) For the purposes of this section, working as an employee shall not be considered \n\line 208.21to be conducting a trade or business. \n\line 208.22{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 208.23 Sec. 18. Minnesota Statutes 2014, section 290.31, subdivision 1, is amended to read: \n\line 208.24 Subdivision 1. Partners, not partnership, subject to tax. {\ul Except as provided } \n\line 208.25{\ul under section 289A.35, paragraph (b), }a partnership as such shall not be subject to the \n\line 208.26income tax imposed by this chapter, but is subject to the tax imposed under section \n\line \n\line 208.27290.0922\n\line . Persons carrying on business as partners shall be liable for income tax only \n\line 208.28in their separate or individual capacities. \n\line 208.29{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 208.30 Sec. 19. Minnesota Statutes 2014, section 290A.19, is amended to read: \n\line 208.31290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT \n\line 208.32CERTIFICATE. \n\line 209.1{\ul (a) }The owner or managing agent of any property for which rent is paid for \n\line 209.2occupancy as a homestead must furnish a certificate of rent paid to a person who is a \n\line 209.3renter on December 31, in the form prescribed by the commissioner. If the renter moves \n\line 209.4before December 31, the owner or managing agent may give the certificate to the renter \n\line 209.5at the time of moving, or mail the certificate to the forwarding address if an address has \n\line 209.6been provided by the renter. The certificate must be made available to the renter before \n\line 209.7February 1 of the year following the year in which the rent was paid. The owner or \n\line 209.8managing agent must retain a duplicate of each certificate or an equivalent record showing \n\line 209.9the same information for a period of three years. The duplicate or other record must be \n\line 209.10made available to the commissioner upon request. \n\line 209.11{\ul (b) The commissioner may require the owner or managing agent, through a } \n\line 209.12{\ul simple process, to furnish to the commissioner on or before March 1 a copy of each } \n\line 209.13{\ul certificate of rent paid furnished to a renter for rent paid in the prior year, in the content, } \n\line 209.14{\ul format, and manner prescribed by the commissioner pursuant to section 270C.30. Prior } \n\line 209.15{\ul to implementation, the commissioner, after consulting with representatives of owners } \n\line 209.16{\ul or managing agents, shall develop an implementation and administration plan for the } \n\line 209.17{\ul requirements of this paragraph that attempts to minimize financial burdens, administration } \n\line 209.18{\ul and compliance costs, and takes into consideration existing systems of owners and } \n\line 209.19{\ul managing agents.} \n\line 209.20{\ul (c)} For the purposes of this section, "owner" includes a park owner as defined under \n\line 209.21section \n\line 327C.01, subdivision 6, and "property" includes a lot as defined under section \n\line \n\line 209.22327C.01, subdivision 3\n\line . \n\line 209.23{\ul EFFECTIVE DATE.}{\ul This section is effective for certificates of rent paid furnished } \n\line 209.24{\ul to a renter for rent paid after December 31, 2015.} \n\line \n\line 209.25 Sec. 20. Minnesota Statutes 2014, section 291.016, subdivision 2, is amended to read: \n\line 209.26 Subd. 2. Additions. The following amounts, to the extent deducted in computing{\ul } \n\line 209.27{\ul or otherwise excluded from} the federal taxable estate, must be added in computing the \n\line 209.28Minnesota taxable estate: \n\line 209.29(1) the amount of the deduction for state death taxes allowed under section 2058 of \n\line 209.30the Internal Revenue Code; \n\line 209.31(2) the amount of the deduction for foreign death taxes allowed under section \n\line 209.322053(d) of the Internal Revenue Code; and \n\line 209.33(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal \n\line 209.34Revenue Code, made by the decedent within three years of the date of death. For purposes \n\line 210.1of this clause, the amount of the addition equals the value of the gift under section 2512 of \n\line 210.2the Internal Revenue Code and excludes any value of the gift included in the federal estate. \n\line 210.3{\ul EFFECTIVE DATE.}{\ul This section is effective retroactively for estates of decedents } \n\line 210.4{\ul dying after June 30, 2013.} \n\line \n\line 210.5 Sec. 21. Minnesota Statutes 2014, section 291.016, subdivision 3, is amended to read: \n\line 210.6 Subd. 3. Subtraction. {\ul The following amounts, to the extent included in computing } \n\line 210.7{\ul the federal taxable estate, may be subtracted in computing the Minnesota taxable estate } \n\line 210.8{\ul but must not reduce the Minnesota taxable estate to less than zero:} \n\line 210.9{\ul (1) the value of property subject to an election under section 291.03, subdivision } \n\line 210.10{\ul 1d; and} \n\line 210.11{\ul (2) }the value of qualified small business property under section \n\line 291.03, subdivision \n\line 210.129\n\line , and the value of qualified farm property under section \n\line 291.03, subdivision 10, or the \n\line 210.13result of $5,000,000 minus the amount for the year of death listed in {\strike clauses (1) to (5) } \n\line 210.14{\ul items (i) to (v)}, whichever is less{\strike , may be subtracted in computing the Minnesota taxable } \n\line 210.15{\strike estate but must not reduce the Minnesota taxable estate to less than zero}: \n\line 210.16{\strike (1)}{\ul (i)} $1,200,000 for estates of decedents dying in 2014; \n\line 210.17{\strike (2)}{\ul (ii)} $1,400,000 for estates of decedents dying in 2015; \n\line 210.18{\strike (3)}{\ul (iii)} $1,600,000 for estates of decedents dying in 2016; \n\line 210.19{\strike (4)}{\ul (iv)} $1,800,000 for estates of decedents dying in 2017; and \n\line 210.20{\strike (5)}{\ul (v)} $2,000,000 for estates of decedents dying in 2018 and thereafter. \n\line 210.21{\ul EFFECTIVE DATE.}{\ul This section is effective retroactively for estates of decedents } \n\line 210.22{\ul dying after June 30, 2011.} \n\line \n\line 210.23 Sec. 22. Minnesota Statutes 2014, section 291.03, subdivision 9, is amended to read: \n\line 210.24 Subd. 9. Qualified small business property. Property satisfying all of the following \n\line 210.25requirements is qualified small business property: \n\line 210.26(1) The value of the property was included in the federal adjusted taxable estate. \n\line 210.27(2) The property consists of the assets of a trade or business or shares of stock or other \n\line 210.28ownership interests in a corporation or other entity engaged in a trade or business. Shares \n\line 210.29of stock in a corporation or an ownership interest in another type of entity do not qualify \n\line 210.30under this subdivision if the shares or ownership interests are traded on a public stock \n\line 210.31exchange at any time during the three-year period ending on the decedent's date of death. \n\line 210.32For purposes of this subdivision, an ownership interest includes the interest the decedent \n\line 210.33is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code. \n\line 211.1(3) During the taxable year that ended before the decedent's death, the trade or \n\line 211.2business must not have been a passive activity within the meaning of section 469(c) of the \n\line 211.3Internal Revenue Code, and the decedent or the decedent's spouse must have materially \n\line 211.4participated in the trade or business within the meaning of section 469(h) of the Internal \n\line 211.5Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other \n\line 211.6provision provided by United States Treasury Department regulation that substitutes \n\line 211.7material participation in prior taxable years for material participation in the taxable year \n\line 211.8that ended before the decedent's death. \n\line 211.9(4) The gross annual sales of the trade or business were $10,000,000 or less for the \n\line 211.10last taxable year that ended before the date of the death of the decedent. \n\line 211.11(5) The property does not {\strike consist of}{\ul include:} \n\line 211.12{\ul (i)} cash{\strike ,}{\ul ;} \n\line 211.13{\ul (ii)} cash equivalents{\strike ,}{\ul ;} \n\line 211.14{\ul (iii)} publicly traded securities{\strike ,}{\ul ;} or \n\line 211.15{\ul (iv) any} assets not used in the operation of the trade or business. \n\line 211.16{\ul (6)} For property consisting of shares of stock or other ownership interests in an \n\line 211.17entity, the value of {\strike cash, cash equivalents, publicly traded securities, or assets not used } \n\line 211.18{\strike in the operation of the trade or business held by the corporation or other entity}{\ul items } \n\line 211.19{\ul described in clause (5)} must be {\strike deducted from the value of the property qualifying under } \n\line 211.20{\strike this subdivision in proportion to the decedent's share of ownership of the entity on the date } \n\line 211.21{\strike of death}{\ul excluded in the valuation of the decedent's interest in the entity}. \n\line 211.22{\strike (6)}{\ul (7)} The decedent continuously owned the property, including property the \n\line 211.23decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue \n\line 211.24Code, for the three-year period ending on the date of death of the decedent. In the case of \n\line 211.25a sole proprietor, if the property replaced similar property within the three-year period, \n\line 211.26the replacement property will be treated as having been owned for the three-year period \n\line 211.27ending on the date of death of the decedent. \n\line 211.28{\strike (7)}{\ul (8)} For three years following the date of death of the decedent, the trade or business \n\line 211.29is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, \n\line 211.30and a family member materially participates in the operation of the trade or business within \n\line 211.31the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) \n\line 211.32of the Internal Revenue Code and any other provision provided by United States Treasury \n\line 211.33Department regulation that substitutes material participation in prior taxable years for \n\line 211.34material participation in the three years following the date of death of the decedent. \n\line 212.1{\strike (8)}{\ul (9)} The estate and the qualified heir elect to treat the property as qualified small \n\line 212.2business property and agree, in the form prescribed by the commissioner, to pay the \n\line 212.3recapture tax under subdivision 11, if applicable. \n\line 212.4{\ul EFFECTIVE DATE.}{\ul This section is effective retroactively for estates of decedents } \n\line 212.5{\ul dying after June 30, 2011.} \n\line \n\line 212.6 Sec. 23. Minnesota Statutes 2014, section 291.03, subdivision 11, is amended to read: \n\line 212.7 Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and \n\line 212.8before the death of the qualified heir, the qualified heir disposes of any interest in the \n\line 212.9qualified property, other than by a disposition to a family member, or a family member \n\line 212.10ceases to satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an \n\line 212.11additional estate tax is imposed on the property. In the case of a sole proprietor, if the \n\line 212.12qualified heir replaces qualified small business property excluded under subdivision 9 \n\line 212.13with similar property, then the qualified heir will not be treated as having disposed of an \n\line 212.14interest in the qualified property. \n\line 212.15(b) The amount of the additional tax equals the amount of the exclusion claimed by \n\line 212.16the estate under subdivision 8, paragraph (d), multiplied by 16 percent. \n\line 212.17(c) The additional tax under this subdivision is due on the day which is six months \n\line 212.18after the date of the disposition or cessation in paragraph (a). \n\line 212.19{\ul (d) This subdivision shall not apply as a result of any of the following:} \n\line 212.20{\ul (1) a portion of qualified farm property consisting of less than one-fifth of the acreage } \n\line 212.21{\ul of the property is reclassified as class 2b property under section 273.13, subdivision 23, } \n\line 212.22{\ul and the qualified heir has not substantially altered the reclassified property during the } \n\line 212.23{\ul three-year holding period; or} \n\line 212.24{\ul (2) a portion of qualified farm property classified as 2a property at the death of } \n\line 212.25{\ul the decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a } \n\line 212.26{\ul residence, garage, and immediately surrounding one acre of land is reclassified as 4bb } \n\line 212.27{\ul property during the three-year holding period, and the qualified heir has not substantially } \n\line 212.28{\ul altered the property.} \n\line 212.29{\ul EFFECTIVE DATE.}{\ul This section is effective retroactively for estates of decedents } \n\line 212.30{\ul dying after June 30, 2011.} \n\line \n\line 212.31 Sec. 24. Minnesota Statutes 2014, section 291.031, is amended to read: \n\line 212.32291.031 CREDIT. \n\line 213.1(a) The estate of a nonresident decedent that is subject to tax under this chapter on \n\line 213.2the value of Minnesota situs property held in a pass-through entity is allowed a credit \n\line 213.3against the tax due under section \n\line 291.03 equal to the lesser of: \n\line 213.4(1) the amount of estate or inheritance tax paid to another state that is attributable to \n\line 213.5the Minnesota situs property held in the pass-through entity; or \n\line 213.6(2) the amount of tax {\strike paid under this section}{\ul due under section 291.03} attributable to \n\line 213.7the Minnesota situs property held in the pass-through entity. \n\line 213.8(b) The amount of tax attributable to the Minnesota situs property held in the \n\line 213.9pass-through entity must be determined by the increase in the estate or inheritance tax that \n\line 213.10results from including the market value of the property in the estate or treating the value \n\line 213.11as a taxable inheritance to the recipient of the property. \n\line 213.12{\ul EFFECTIVE DATE.}{\ul This section is effective retroactively for estates of decedents } \n\line 213.13{\ul dying after December 31, 2013.} \n\line \n\line 213.14 Sec. 25. {\ul REPEALER.} \n\line 213.15{\ul (a)}{\ul Minnesota Rules, part 8092.1400,}{\ul is repealed.} \n\line 213.16{\ul (b)}{\ul Minnesota Rules, part 8092.2000,}{\ul is repealed.} \n\line 213.17{\ul EFFECTIVE DATE.}{\ul Paragraph (a) is effective for taxable years beginning after } \n\line 213.18{\ul December 31, 2015, except that notifications from the Department of Revenue to } \n\line 213.19{\ul employers regarding eligibility to file an annual return for taxes withheld in calendar year } \n\line 213.20{\ul 2016 remain in force. Paragraph (b) is effective the day following final enactment.} \n\line \n\line
213.21ARTICLE 13 \n\line \n\line
\n\line
213.22DEPARTMENT POLICY AND TECHNICAL PROVISIONS; SPECIAL \n\line 213.23TAXES AND SALES TAXES \n\line \n\line
\n\line 213.24 Section 1. Minnesota Statutes 2014, section 69.021, subdivision 5, is amended to read: \n\line 213.25 Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for \n\line 213.26apportionment, before the addition of the minimum fire state aid allocation amount under \n\line 213.27subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state \n\line 213.28upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to \n\line 213.29the commissioner by insurers on the Minnesota Firetown Premium Report. This amount \n\line 213.30must be reduced by the amount required to pay the state auditor's costs and expenses of \n\line 213.31the audits or exams of the firefighters relief associations. \n\line 213.32The total amount for apportionment in respect to fire state aid must not be less than \n\line 213.33two percent of the premiums reported to the commissioner by insurers on the Minnesota \n\line 213.34Firetown Premium Report after subtracting the following amounts: \n\line 214.1(1) the amount required to pay the state auditor's costs and expenses of the audits or \n\line 214.2exams of the firefighters relief associations; and \n\line 214.3(2) one percent of the premiums reported by {\strike town and farmers'}{\ul township} mutual \n\line 214.4insurance companies and mutual property and casualty companies with total assets of \n\line 214.5$5,000,000 or less. \n\line 214.6(b) The total amount for apportionment as police state aid is equal to 104 percent \n\line 214.7of the amount of premium taxes paid to the state on the premiums reported to the \n\line 214.8commissioner by insurers on the Minnesota Aid to Police Premium Report. The total \n\line 214.9amount for apportionment in respect to the police state aid program must not be less than \n\line 214.10two percent of the amount of premiums reported to the commissioner by insurers on the \n\line 214.11Minnesota Aid to Police Premium Report. \n\line 214.12(c) The commissioner shall calculate the percentage of increase or decrease reflected \n\line 214.13in the apportionment over or under the previous year's available state aid using the same \n\line 214.14premiums as a basis for comparison. \n\line 214.15(d) In addition to the amount for apportionment of police state aid under paragraph \n\line 214.16(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to \n\line 214.17pay this increase is annually appropriated from the general fund. \n\line 214.18{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 214.19 Sec. 2. Minnesota Statutes 2014, section 289A.38, subdivision 6, is amended to read: \n\line 214.20 Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed \n\line 214.21within 6-1/2 years after the due date of the return or the date the return was filed, \n\line 214.22whichever is later, if: \n\line 214.23(1) the taxpayer omits from gross income an amount properly includable in it that is \n\line 214.24in excess of 25 percent of the amount of gross income stated in the return; \n\line 214.25(2) the taxpayer omits from a sales, use, or withholding tax return{\ul , or a return for a } \n\line 214.26{\ul tax imposed under section 295.52,} an amount of taxes in excess of 25 percent of the \n\line 214.27taxes reported in the return; or \n\line 214.28(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the \n\line 214.29gross estate reported in the return. \n\line 214.30{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 214.31 Sec. 3. Minnesota Statutes 2014, section 290.0922, subdivision 2, is amended to read: \n\line 214.32 Subd. 2. Exemptions. The following entities are exempt from the tax imposed \n\line 214.33by this section: \n\line 215.1(1) corporations exempt from tax under section \n\line 290.05; \n\line 215.2(2) real estate investment trusts; \n\line 215.3(3) regulated investment companies or a fund thereof; and \n\line 215.4(4) entities having a valid election in effect under section 860D(b) of the Internal \n\line 215.5Revenue Code; \n\line 215.6(5) {\strike town and farmers'}{\ul township} mutual insurance companies; \n\line 215.7(6) cooperatives organized under chapter 308A or 308B that provide housing \n\line 215.8exclusively to persons age 55 and over and are classified as homesteads under section \n\line \n\line 215.9273.124, subdivision 3\n\line ; and \n\line 215.10(7) a qualified business as defined under section \n\line 469.310, subdivision 11, if for the \n\line 215.11taxable year all of its property is located in a job opportunity building zone designated \n\line 215.12under section \n\line 469.314 and all of its payroll is a job opportunity building zone payroll \n\line 215.13under section \n\line 469.310. \n\line 215.14Entities not specifically exempted by this subdivision are subject to tax under this \n\line 215.15section, notwithstanding section \n\line 290.05. \n\line 215.16{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 215.17 Sec. 4. Minnesota Statutes 2014, section 295.54, subdivision 2, is amended to read: \n\line 215.18 Subd. 2. Pharmacy refund. A pharmacy may claim an annual refund against \n\line 215.19the total amount of tax, if any, the pharmacy owes during that calendar year under \n\line 215.20section \n\line 295.52, subdivision 4. The refund shall equal the amount paid by the pharmacy \n\line 215.21to a wholesale drug distributor subject to tax under section \n\line 295.52, subdivision 3, for \n\line 215.22legend drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax \n\line 215.23percentage specified in section \n\line 295.52, subdivision 3. If the amount of the refund exceeds \n\line 215.24the tax liability of the pharmacy under section \n\line 295.52, subdivision 4, the commissioner \n\line 215.25shall provide the pharmacy with a refund equal to the excess amount. Each qualifying \n\line 215.26pharmacy must apply for the refund on the annual return as {\strike provided under section } \n\line 215.27{\strike 295.55, subdivision 5}{\ul prescribed by the commissioner, on or before March 15 of the year } \n\line 215.28{\ul following the calendar year the legend drugs were delivered outside Minnesota}. The \n\line 215.29refund {\strike must be claimed within 18 months from the date the drugs were delivered outside } \n\line 215.30{\strike of Minnesota}{\ul shall not be allowed if the initial claim for refund is filed more than one year } \n\line 215.31{\ul after the original due date of the return}. Interest on refunds paid under this subdivision \n\line 215.32will begin to accrue 60 days after the date a claim for refund is filed. For purposes of this \n\line 215.33subdivision, the date a claim is filed is the due date of the return if a return is due or the \n\line 215.34date of the actual claim for refund, whichever is later. \n\line 216.1{\ul EFFECTIVE DATE.}{\ul This section is effective for qualifying legend drugs delivered } \n\line 216.2{\ul outside Minnesota after December 31, 2015.} \n\line \n\line 216.3 Sec. 5. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision \n\line 216.4to read: \n\line 216.5 {\ul Subd. 9a.} {\ul Bulk storage or bulk storage facility.} {\ul "Bulk storage" or "bulk storage } \n\line 216.6{\ul facility" means a single property, or contiguous or adjacent properties used for a common } \n\line 216.7{\ul purpose and owned or operated by the same person, on or in which are located one or more } \n\line 216.8{\ul stationary tanks that are used singularly or in combination for the storage or containment } \n\line 216.9{\ul of more than 1,100 gallons of petroleum.} \n\line 216.10{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 216.11 Sec. 6. Minnesota Statutes 2014, section 296A.01, subdivision 33, is amended to read: \n\line 216.12 Subd. 33. Motor fuel. "Motor fuel" means a liquid{\ul or gaseous form of fuel}, \n\line 216.13regardless of its composition or properties, used to propel a motor vehicle. \n\line 216.14{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 216.15 Sec. 7. Minnesota Statutes 2014, section 296A.01, subdivision 42, is amended to read: \n\line 216.16 Subd. 42. Petroleum products. "Petroleum products" means all of the products \n\line 216.17defined in subdivisions 2, 7, 8, 8a,{\ul 8b,} 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35. \n\line 216.18{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 216.19 Sec. 8. Minnesota Statutes 2014, section 296A.07, subdivision 1, is amended to read: \n\line 216.20 Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline \n\line 216.21blended with ethanol, and agricultural alcohol gasoline used in producing and generating \n\line 216.22power for propelling motor vehicles used on the public highways of this state. The tax \n\line 216.23is imposed on the first licensed distributor who received the product in Minnesota. For \n\line 216.24purposes of this section, gasoline is defined in section \n\line 296A.01, subdivisions {\ul 8b, }10, 18, \n\line 216.2520, 23, 24, 25, 32, and 34\n\line . The tax is payable at the time and in the form and manner \n\line 216.26prescribed by the commissioner. The tax is payable at the rates specified in subdivision 3, \n\line 216.27subject to the exceptions and reductions specified in section \n\line 296A.17. \n\line 216.28{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 216.29 Sec. 9. Minnesota Statutes 2014, section 297A.61, subdivision 10, is amended to read: \n\line 217.1 Subd. 10. Tangible personal property. (a) "Tangible personal property" means \n\line 217.2personal property that can be seen, weighed, measured, felt, or touched, or that is in any \n\line 217.3other manner perceptible to the senses. "Tangible personal property" includes, but is not \n\line 217.4limited to, electricity, water, gas, steam, and prewritten computer software. \n\line 217.5 (b) Tangible personal property does not include: \n\line 217.6 {\strike (1) large ponderous machinery and equipment used in a business or production } \n\line 217.7{\strike activity which at common law would be considered to be real property;} \n\line 217.8 {\strike (2)}{\ul (1)} property which is subject to an ad valorem property tax; \n\line 217.9 {\strike (3)}{\ul (2)} property described in section \n\line 272.02, subdivision 9, clauses (a) to (d); \n\line 217.10 {\strike (4)}{\ul (3)} property described in section \n\line 272.03, subdivision 2, clauses (3) and (5); and \n\line 217.11{\strike (5)}{\ul (4)} specified digital products, or other digital products, transferred electronically. \n\line 217.12{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 217.13 Sec. 10. Minnesota Statutes 2014, section 297A.82, subdivision 4, is amended to read: \n\line 217.14 Subd. 4. Exemptions. (a) The following transactions are exempt from the tax \n\line 217.15imposed in this chapter to the extent provided. \n\line 217.16(b) The purchase or use of aircraft previously registered in Minnesota by a \n\line 217.17corporation or partnership is exempt if the transfer constitutes a transfer within the \n\line 217.18meaning of section 351 or 721 of the Internal Revenue Code. \n\line 217.19(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer \n\line 217.20of an aircraft for which a commercial use permit has been issued pursuant to section \n\line \n\line 217.21360.654\n\line is exempt, if the aircraft is resold while the permit is in effect. \n\line 217.22(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by \n\line 217.23airline companies, as defined in section \n\line 270.071, subdivision 4, is exempt. For purposes \n\line 217.24of this subdivision, "air flight equipment" includes airplanes and parts necessary for the \n\line 217.25repair and maintenance of such air flight equipment, and flight simulators, but does not \n\line 217.26include {\strike airplanes}{\ul aircraft} with a {\strike gross}{\ul maximum takeoff} weight of less than 30,000 pounds \n\line 217.27{\strike that are used on intermittent or irregularly timed flights}. \n\line 217.28(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined \n\line 217.29in section \n\line 360.511 and approved by the Federal Aviation Administration, and which the \n\line 217.30seller delivers to a purchaser outside Minnesota or which, without intermediate use, is \n\line 217.31shipped or transported outside Minnesota by the purchaser are exempt, but only if the \n\line 217.32purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter \n\line 217.33returned to a point within Minnesota, except in the course of interstate commerce or \n\line 217.34isolated and occasional use, and will be registered in another state or country upon its \n\line 217.35removal from Minnesota. This exemption applies even if the purchaser takes possession of \n\line 218.1the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes \n\line 218.2for a period not to exceed ten days prior to removing the aircraft from this state. \n\line 218.3(f) The sale or purchase of the following items that relate to aircraft operated under \n\line 218.4Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: \n\line 218.5equipment and parts necessary for repair and maintenance of aircraft; and equipment \n\line 218.6and parts to upgrade and improve aircraft. \n\line 218.7{\ul EFFECTIVE DATE.}{\ul This section is effective for sales and purchases made after } \n\line 218.8{\ul December 31, 2016.} \n\line \n\line 218.9 Sec. 11. Minnesota Statutes 2014, section 297A.82, subdivision 4a, is amended to read: \n\line 218.10 Subd. 4a. Deposit in state airports fund. Tax revenue{\ul , including interest and } \n\line 218.11{\ul penalties,} collected from the sale or purchase of an aircraft taxable under this chapter must \n\line 218.12be deposited in the state airports fund established in section \n\line 360.017.{\ul For purposes of this } \n\line 218.13{\ul subdivision, "revenue" does not include the revenue, including interest and penalties, } \n\line 218.14{\ul generated by the sales tax imposed under section 297A.62, subdivision 1a, which must be } \n\line 218.15{\ul deposited as provided under article XI, section 15, of the Minnesota Constitution.} \n\line 218.16{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 218.17 Sec. 12. Minnesota Statutes 2014, section 297E.02, subdivision 7, is amended to read: \n\line 218.18 Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal \n\line 218.19sanctions imposed by this chapter, a person, organization, or business entity possessing or \n\line 218.20selling a pull-tab, electronic pull-tab game, or tipboard upon which the tax imposed by \n\line 218.21this chapter has not been paid is liable for a tax of six percent of the ideal gross of each \n\line 218.22pull-tab, electronic pull-tab game, or tipboard. The tax on a partial deal must be assessed \n\line 218.23as if it were a full deal. \n\line 218.24(b) In addition to penalties and criminal sanctions imposed by this chapter, a person \n\line 218.25{\ul (1) }not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, \n\line 218.26raffles, or paddlewheel games{\ul , or (2) who conducts gambling prohibited under sections } \n\line 218.27{\ul 609.75 to 609.763, other than activities subject to tax under section 297E.03,} is liable for a \n\line 218.28tax of six percent of the gross receipts from that activity. \n\line 218.29(c) The tax {\strike must}{\ul may} be assessed by the commissioner. An assessment must be \n\line 218.30considered a jeopardy assessment or jeopardy collection as provided in section \n\line 270C.36. \n\line 218.31The commissioner shall assess the tax based on personal knowledge or information \n\line 218.32available to the commissioner. The commissioner shall mail to the taxpayer at the \n\line 218.33taxpayer's last known address, or serve in person, a written notice of the amount of tax, \n\line 219.1demand its immediate payment, and, if payment is not immediately made, collect the tax \n\line 219.2by any method described in chapter 270C, except that the commissioner need not await the \n\line 219.3expiration of the times specified in chapter 270C. The tax assessed by the commissioner \n\line 219.4is presumed to be valid and correctly determined and assessed. The burden is upon the \n\line 219.5taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision \n\line 219.6does not apply to gambling that is exempt from taxation under subdivision 2. \n\line 219.7{\ul (d) A person, organization, or business entity conducting gambling activity under } \n\line 219.8{\ul this subdivision must file monthly tax returns with the commissioner, in the form required } \n\line 219.9{\ul by the commissioner. The returns must be filed on or before the 20th day of the month } \n\line 219.10{\ul following the month in which the gambling activity occurred. The tax imposed by this } \n\line 219.11{\ul section is due and payable at the time when the returns are required to be filed.} \n\line 219.12{\ul (e) Notwithstanding any law to the contrary, neither the commissioner nor a public } \n\line 219.13{\ul employee may reveal facts contained in a tax return filed with the commissioner of } \n\line 219.14{\ul revenue as required by this subdivision, nor can any information contained in the report or } \n\line 219.15{\ul return be used against the tax obligor in any criminal proceeding, unless independently } \n\line 219.16{\ul obtained, except in connection with a proceeding involving taxes due under this section, } \n\line 219.17{\ul or as provided in section 270C.055, subdivision 1. However, this paragraph does not } \n\line 219.18{\ul prohibit the commissioner from publishing statistics that do not disclose the identity of } \n\line 219.19{\ul tax obligors or the contents of particular returns or reports. Any person violating this } \n\line 219.20{\ul paragraph is guilty of a gross misdemeanor.} \n\line 219.21{\ul EFFECTIVE DATE.}{\ul This section is effective for games played or purchased after } \n\line 219.22{\ul June 30, 2016.} \n\line \n\line 219.23 Sec. 13. Minnesota Statutes 2014, section 297H.06, subdivision 2, is amended to read: \n\line 219.24 Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed \n\line 219.25municipal solid waste or upon the volume of nonmixed municipal solid waste for waste \n\line 219.26management services to manage the following materials: \n\line 219.27(1) mixed municipal solid waste and nonmixed municipal solid waste generated \n\line 219.28outside of Minnesota; \n\line 219.29(2) recyclable materials that are separated for recycling by the generator, collected \n\line 219.30separately from other waste, and recycled, to the extent the price of the service for \n\line 219.31handling recyclable material is separately itemized{\ul on a bill to the generator}; \n\line 219.32(3) recyclable nonmixed municipal solid waste that is separated for recycling by \n\line 219.33the generator, collected separately from other waste, delivered to a waste facility for the \n\line 219.34purpose of recycling, and recycled; \n\line 220.1(4) industrial waste, when it is transported to a facility owned and operated by \n\line 220.2the same person that generated it; \n\line 220.3(5) mixed municipal solid waste from a recycling facility that separates or processes \n\line 220.4recyclable materials and reduces the volume of the waste by at least 85 percent, provided \n\line 220.5that the exempted waste is managed separately from other waste; \n\line 220.6(6) recyclable materials that are separated from mixed municipal solid waste by the \n\line 220.7generator, collected and delivered to a waste facility that recycles at least 85 percent of its \n\line 220.8waste, and are collected with mixed municipal solid waste that is segregated in leakproof \n\line 220.9bags, provided that the mixed municipal solid waste does not exceed five percent of the \n\line 220.10total weight of the materials delivered to the facility and is ultimately delivered to a waste \n\line 220.11facility identified as a preferred waste management facility in county solid waste plans \n\line 220.12under section \n\line 115A.46; \n\line 220.13(7) source-separated compostable {\strike waste}{\ul materials}, if the {\strike waste is}{\ul materials are } \n\line 220.14delivered to a facility exempted as described in this clause. To initially qualify for an \n\line 220.15exemption, a facility must apply for an exemption in its application for a new or amended \n\line 220.16solid waste permit to the Pollution Control Agency. The first time a facility applies to the \n\line 220.17agency it must certify in its application that it will comply with the criteria in items (i) to (v) \n\line 220.18and the commissioner of the agency shall so certify to the commissioner of revenue who \n\line 220.19must grant the exemption. The facility must annually apply to the agency for certification \n\line 220.20to renew its exemption for the following year. The application must be filed according to \n\line 220.21the procedures of, and contain the information required by, the agency. The commissioner \n\line 220.22of revenue shall grant the exemption if the commissioner of the Pollution Control Agency \n\line 220.23finds and certifies to the commissioner of revenue that based on an evaluation of the \n\line 220.24composition of incoming waste and residuals and the quality and use of the product: \n\line 220.25(i) generators separate materials at the source; \n\line 220.26(ii) the separation is performed in a manner appropriate to the technology specific \n\line 220.27to the facility that: \n\line 220.28(A) maximizes the quality of the product; \n\line 220.29(B) minimizes the toxicity and quantity of {\strike residuals}{\ul rejects}; and \n\line 220.30(C) provides an opportunity for significant improvement in the environmental \n\line 220.31efficiency of the operation; \n\line 220.32(iii) the operator of the facility educates generators, in coordination with each county \n\line 220.33using the facility, about separating the waste to maximize the quality of the waste stream \n\line 220.34for technology specific to the facility; \n\line 220.35(iv) process {\strike residuals}{\ul rejects} do not exceed 15 percent of the weight of the total \n\line 220.36material delivered to the facility; and \n\line 221.1(v) the final product is accepted for use; \n\line 221.2(8) waste and waste by-products for which the tax has been paid; and \n\line 221.3(9) daily cover for landfills that has been approved in writing by the Minnesota \n\line 221.4Pollution Control Agency. \n\line 221.5{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 221.6 Sec. 14. Minnesota Statutes 2014, section 297I.05, subdivision 2, is amended to read: \n\line 221.7 Subd. 2. {\strike Town and farmers'}{\ul Township} mutual insurance. A tax is imposed on \n\line 221.8{\strike town and farmers'}{\ul township} mutual insurance companies. The rate of tax is equal to one \n\line 221.9percent of gross premiums less return premiums on all direct business received by the \n\line 221.10insurer or agents of the insurer in Minnesota, in cash or otherwise, during the year. \n\line 221.11{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 221.12 Sec. 15. Minnesota Statutes 2014, section 297I.10, subdivision 1, is amended to read: \n\line 221.13 Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct \n\line 221.14a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross \n\line 221.15premiums, less return premiums, on all direct business received by any licensed foreign or \n\line 221.16domestic fire insurance company on property in a city of the first class, or by its agents for \n\line 221.17it, in cash or otherwise. \n\line 221.18(b) By July 31 and December 31 of each year, the commissioner {\strike of management } \n\line 221.19{\strike and budget} shall pay to each city of the first class a warrant for an amount equal to the \n\line 221.20total amount of the surcharge on the premiums collected within that city since the previous \n\line 221.21payment. \n\line 221.22(c) The treasurer of the city shall place the money received under this subdivision \n\line 221.23in a special account or fund to defray all or a portion of the employer contribution \n\line 221.24requirement of public employees police and fire plan coverage for city firefighters. \n\line 221.25{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 221.26 Sec. 16. Minnesota Statutes 2014, section 297I.10, subdivision 3, is amended to read: \n\line 221.27 Subd. 3. Appropriation. The amount necessary to make the payments required \n\line 221.28under this section is appropriated to the commissioner {\strike of management and budget} from \n\line 221.29the general fund. \n\line 221.30{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 222.1 Sec. 17. Minnesota Statutes 2014, section 298.01, subdivision 3b, is amended to read: \n\line 222.2 Subd. 3b. Deductions. (a) For purposes of determining taxable income under \n\line 222.3subdivision 3, the deductions from gross income include only those expenses necessary \n\line 222.4to convert raw ores to marketable quality. Such expenses include costs associated with \n\line 222.5refinement but do not include expenses such as transportation, stockpiling, marketing, or \n\line 222.6marine insurance that are incurred after marketable ores are produced, unless the expenses \n\line 222.7are included in gross income. The allowable deductions from a mine or plant that mines \n\line 222.8and produces more than one mineral, metal, or energy resource must be determined \n\line 222.9separately for the purposes of computing the deduction in section \n\line 290.01, subdivision 19c, \n\line 222.10clause (8). These deductions may be combined on one occupation tax return to arrive at \n\line 222.11the deduction from gross income for all production. \n\line 222.12(b) The provisions of section \n\line 290.01, subdivisions 19c, clauses (6) and (8), and 19d, \n\line 222.13clauses (6) and {\strike (9)}{\ul (8)}, are not used to determine taxable income. \n\line 222.14{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 222.15 Sec. 18. Minnesota Statutes 2014, section 298.01, subdivision 4c, is amended to read: \n\line 222.16 Subd. 4c. Special deductions; net operating loss. {\strike (a)} For purposes of determining \n\line 222.17taxable income under subdivision 4, the provisions of section \n\line 290.01, subdivisions 19c, \n\line 222.18clauses (6)\n\line and (8), and 19d, clauses (6) and {\strike (9)}{\ul (8)}, are not used to determine taxable \n\line 222.19income. \n\line 222.20{\strike (b) The amount of net operating loss incurred in a taxable year beginning before } \n\line 222.21{\strike January 1, 1990, that may be carried over to a taxable year beginning after December 31, } \n\line 222.22{\strike 1989, is the amount of net operating loss carryover determined in the calculation of the } \n\line 222.23{\strike hypothetical corporate franchise tax under Minnesota Statutes 1988, sections }\n\line {\strike 298.40 } \n\line 222.24{\strike and }\n\line {\strike 298.402}{\strike .} \n\line 222.25{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line
222.26ARTICLE 14 \n\line \n\line
\n\line
222.27DEPARTMENT OF REVENUE TECHNICAL AND POLICY; \n\line 222.28PROPERTY TAX PROVISIONS \n\line \n\line
\n\line 222.29 Section 1. Minnesota Statutes 2014, section 13.51, subdivision 2, is amended to read: \n\line 222.30 Subd. 2. Income property assessment data. The following data collected by \n\line 222.31political subdivisions {\ul and the state }from individuals or business entities concerning \n\line 222.32income properties are classified as private or nonpublic data pursuant to section \n\line 13.02, \n\line 222.33subdivisions 9\n\line and 12: \n\line 222.34(a) detailed income and expense figures; \n\line 223.1(b) average vacancy factors; \n\line 223.2(c) verified net rentable areas or net usable areas, whichever is appropriate; \n\line 223.3(d) anticipated income and expenses; \n\line 223.4(e) projected vacancy factors; and \n\line 223.5(f) lease information. \n\line 223.6{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 223.7 Sec. 2. Minnesota Statutes 2014, section 270.071, subdivision 2, is amended to read: \n\line 223.8 Subd. 2. Air commerce. {\strike (a)} "Air commerce" means the transportation by aircraft \n\line 223.9of persons or property for hire in interstate, intrastate, or international transportation \n\line 223.10on regularly scheduled flights or on intermittent or irregularly timed flights by airline \n\line 223.11companies{\ul and includes transportation by any airline company making three or more } \n\line 223.12{\ul flights in or out of Minnesota, or within Minnesota, during a calendar year}. \n\line 223.13{\strike (b) "Air commerce" includes but is not limited to an intermittent or irregularly timed } \n\line 223.14{\strike flight, a flight arranged at the convenience of an airline and the person contracting for the } \n\line 223.15{\strike transportation, or a charter flight. It includes any airline company making three or more } \n\line 223.16{\strike flights in or out of Minnesota during a calendar year.} \n\line 223.17{\strike (c) "Air commerce" does not include casual transportation for hire by aircraft } \n\line 223.18{\strike commonly owned and used for private air flight purposes if the person furnishing the } \n\line 223.19{\strike transportation does not hold out to be engaged regularly in transportation for hire.} \n\line 223.20{\ul EFFECTIVE DATE.}{\ul This section is effective for assessment year 2017 and } \n\line 223.21{\ul thereafter.} \n\line \n\line 223.22 Sec. 3. Minnesota Statutes 2014, section 270.071, subdivision 7, is amended to read: \n\line 223.23 Subd. 7. Flight property. "Flight property" means all aircraft and flight equipment \n\line 223.24used in connection therewith, including spare flight equipment. Flight property also \n\line 223.25includes computers and computer software used in operating, controlling, or regulating \n\line 223.26aircraft and flight equipment.{\ul Flight property does not include aircraft with a maximum } \n\line 223.27{\ul takeoff weight of less than 30,000 pounds.} \n\line 223.28{\ul EFFECTIVE DATE.}{\ul This section is effective for assessment year 2017 and } \n\line 223.29{\ul thereafter.} \n\line \n\line 223.30 Sec. 4. Minnesota Statutes 2014, section 270.071, subdivision 8, is amended to read: \n\line 223.31 Subd. 8. Person. "Person" means {\strike any}{\ul an} individual, {\strike corporation, firm, } \n\line 223.32{\strike copartnership, company, or association, and includes any guardian, trustee, executor, } \n\line 224.1{\strike administrator, receiver, conservator, or any person acting in any fiduciary capacity therefor } \n\line 224.2{\ul trust, estate, fiduciary, partnership, company, corporation, limited liability company, } \n\line 224.3{\ul association, governmental unit or agency, public or private organization of any kind, } \n\line 224.4{\ul or other legal entity}. \n\line 224.5{\ul EFFECTIVE DATE.}{\ul This section is effective for assessment year 2017 and } \n\line 224.6{\ul thereafter.} \n\line \n\line 224.7 Sec. 5. Minnesota Statutes 2014, section 270.071, is amended by adding a subdivision \n\line 224.8to read: \n\line 224.9 {\ul Subd. 10.} {\ul Intermittent or irregularly timed flights.} {\ul "Intermittently or irregularly } \n\line 224.10{\ul timed flights" means any flight in which the departure time, departure location, and arrival } \n\line 224.11{\ul location are specifically negotiated with the customer or the customer's representative, } \n\line 224.12{\ul including but not limited to charter flights.} \n\line 224.13{\ul EFFECTIVE DATE.}{\ul This section is effective for assessment year 2017 and } \n\line 224.14{\ul thereafter.} \n\line \n\line 224.15 Sec. 6. Minnesota Statutes 2014, section 270.072, subdivision 2, is amended to read: \n\line 224.16 Subd. 2. Assessment of flight property. Flight property that is owned by, or is \n\line 224.17leased, loaned, or otherwise made available to an airline company operating in Minnesota \n\line 224.18shall be assessed and appraised annually by the commissioner with reference to its value \n\line 224.19on January 2 of the assessment year in the manner prescribed by sections \n\line 270.071 to \n\line \n\line 224.20270.079\n\line . {\strike Aircraft with a gross weight of less than 30,000 pounds and used on intermittent } \n\line 224.21{\strike or irregularly timed flights shall be excluded from the provisions of sections }\n\line {\strike 270.071}{\strike to } \n\line 224.22{\strike 270.079}{\strike .} \n\line 224.23{\ul EFFECTIVE DATE.}{\ul This section is effective for assessment year 2017 and } \n\line 224.24{\ul thereafter.} \n\line \n\line 224.25 Sec. 7. Minnesota Statutes 2014, section 270.072, subdivision 3, is amended to read: \n\line 224.26 Subd. 3. Report by airline company. {\ul (a) }Each year, on or before July 1, every \n\line 224.27airline company engaged in air commerce in this state shall file with the commissioner a \n\line 224.28report under oath setting forth specifically the information prescribed by the commissioner \n\line 224.29to enable the commissioner to make the assessment required in sections \n\line 270.071 to \n\line \n\line 224.30270.079\n\line , unless the commissioner determines that the airline company {\strike or person should be } \n\line 224.31{\strike excluded from}{\ul is exempt from} filing {\strike because its activities do not constitute air commerce } \n\line 224.32{\strike as defined herein}. \n\line 225.1 {\ul (b) The commissioner shall prescribe the content, format, and manner of the report } \n\line 225.2{\ul pursuant to section 270C.30, except that a "law administered by the commissioner" } \n\line 225.3{\ul includes the property tax laws. If a report is made by electronic means, the taxpayer's } \n\line 225.4{\ul signature is defined pursuant to section 270C.304, except that a "law administered by the } \n\line 225.5{\ul commissioner" includes the property tax laws.} \n\line 225.6{\ul EFFECTIVE DATE.}{\ul The amendment to paragraph (a) is effective for reports } \n\line 225.7{\ul filed in 2017 and thereafter. The amendment adding paragraph (b) is effective the day } \n\line 225.8{\ul following final enactment.} \n\line \n\line 225.9 Sec. 8. Minnesota Statutes 2014, section 270.072, is amended by adding a subdivision \n\line 225.10to read: \n\line 225.11 {\ul Subd. 3a.} {\ul Commissioner filed reports.} {\ul If an airline company fails to file a report } \n\line 225.12{\ul required by subdivision 3, the commissioner may, from information in the commissioner's } \n\line 225.13{\ul possession or obtainable by the commissioner, make and file a report for the airline } \n\line 225.14{\ul company, or may issue a notice of net tax capacity and tax under section 270.075, } \n\line 225.15{\ul subdivision 2.} \n\line 225.16{\ul EFFECTIVE DATE.}{\ul This section is effective for assessment year 2017 and } \n\line 225.17{\ul thereafter.} \n\line \n\line 225.18 Sec. 9. Minnesota Statutes 2014, section 270.12, is amended by adding a subdivision \n\line 225.19to read: \n\line 225.20 {\ul Subd. 6.} {\ul Reassessment orders.} {\ul If the State Board of Equalization determines that a } \n\line 225.21{\ul considerable amount of property has been undervalued or overvalued compared to like } \n\line 225.22{\ul property such that the assessment is grossly unfair or inequitable, the State Board of } \n\line 225.23{\ul Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders } \n\line 225.24{\ul to the county assessor to reassess all or any part of a parcel in a county.} \n\line 225.25{\ul EFFECTIVE DATE.}{\ul This section is effective for assessment year 2017 and } \n\line 225.26{\ul thereafter.} \n\line \n\line 225.27 Sec. 10. Minnesota Statutes 2014, section 270C.89, subdivision 1, is amended to read: \n\line 225.28 Subdivision 1. Initial report. Each county assessor shall file by April 1 with the \n\line 225.29commissioner a copy of the abstract that will be acted upon by the local and county \n\line 225.30boards of review. The abstract must list the real and personal property in the county \n\line 225.31itemized by assessment districts. The assessor of each county in the state shall file with \n\line 225.32the commissioner, within ten working days following final action of the local board of \n\line 226.1review or equalization and within five days following final action of the county board of \n\line 226.2equalization, any changes made by the local or county board. The information must be \n\line 226.3filed in the manner prescribed by the commissioner. {\strike It must be accompanied by a printed } \n\line 226.4{\strike or typewritten copy of the proceedings of the appropriate board.} \n\line 226.5{\ul EFFECTIVE DATE.}{\ul This section is effective for county boards of appeal and } \n\line 226.6{\ul equalization meetings held in 2017 and thereafter.} \n\line \n\line 226.7 Sec. 11. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read: \n\line 226.8 Subd. 9. Personal property; exceptions. Except for the taxable personal property \n\line 226.9enumerated below, all personal property and the property described in section \n\line 272.03, \n\line 226.10subdivision 1\n\line , paragraphs (c) and (d), shall be exempt. \n\line 226.11The following personal property shall be taxable: \n\line 226.12(a) personal property which is part of {\ul (1) }an electric generating, transmission, or \n\line 226.13distribution system {\strike or}{\ul ; (2)} a pipeline system transporting or distributing {\strike water, gas, crude } \n\line 226.14{\strike oil, or petroleum} products{\ul ;} or {\ul (3) }mains and pipes used in the distribution of steam or hot \n\line 226.15or chilled water for heating or cooling buildings and structures; \n\line 226.16(b) railroad docks and wharves which are part of the operating property of a railroad \n\line 226.17company as defined in section \n\line 270.80; \n\line 226.18(c) personal property defined in section \n\line 272.03, subdivision 2, clause (3); \n\line 226.19(d) leasehold or other personal property interests which are taxed pursuant to section \n\line \n\line 226.20272.01, subdivision 2\n\line ; \n\line 273.124, subdivision 7; or \n\line 273.19, subdivision 1; or any other law \n\line 226.21providing the property is taxable as if the lessee or user were the fee owner; \n\line 226.22(e) manufactured homes and sectional structures, including storage sheds, decks, \n\line 226.23and similar removable improvements constructed on the site of a manufactured home, \n\line 226.24sectional structure, park trailer or travel trailer as provided in section \n\line 273.125, subdivision \n\line 226.258\n\line , paragraph (f); and \n\line 226.26(f) flight property as defined in section \n\line 270.071. \n\line 226.27{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 226.28 Sec. 12. Minnesota Statutes 2014, section 272.029, subdivision 2, is amended to read: \n\line 226.29 Subd. 2. Definitions. (a) For the purposes of this section, the term: \n\line 226.30(1) "wind energy conversion system" has the meaning given in section 216C.06, \n\line 226.31subdivision 19, and also includes a substation that is used and owned by one or more \n\line 226.32wind energy conversion facilities; \n\line 227.1(2) "large scale wind energy conversion system" means a wind energy conversion \n\line 227.2system of more than 12 megawatts, as measured by the nameplate capacity of the system \n\line 227.3or as combined with other systems as provided in paragraph (b); \n\line 227.4(3) "medium scale wind energy conversion system" means a wind energy conversion \n\line 227.5system of over two and not more than 12 megawatts, as measured by the nameplate \n\line 227.6capacity of the system or as combined with other systems as provided in paragraph (b); and \n\line 227.7(4) "small scale wind energy conversion system" means a wind energy conversion \n\line 227.8system of two megawatts and under, as measured by the nameplate capacity of the system \n\line 227.9or as combined with other systems as provided in paragraph (b). \n\line 227.10(b) For systems installed and contracted for after January 1, 2002, the total size of a \n\line 227.11wind energy conversion system under this subdivision shall be determined according to \n\line 227.12this paragraph. Unless the systems are interconnected with different distribution systems, \n\line 227.13the nameplate capacity of one wind energy conversion system shall be combined with the \n\line 227.14nameplate capacity of any other wind energy conversion system that is: \n\line 227.15(1) located within five miles of the wind energy conversion system; \n\line 227.16(2) constructed within the same {\strike calendar year}{\ul 12-month period} as the wind energy \n\line 227.17conversion system; and \n\line 227.18(3) under common ownership. \n\line 227.19In the case of a dispute, the commissioner of commerce shall determine the total size \n\line 227.20of the system, and shall draw all reasonable inferences in favor of combining the systems. \n\line 227.21(c) In making a determination under paragraph (b), the commissioner of commerce \n\line 227.22may determine that two wind energy conversion systems are under common ownership \n\line 227.23when the underlying ownership structure contains similar persons or entities, even if the \n\line 227.24ownership shares differ between the two systems. Wind energy conversion systems are \n\line 227.25not under common ownership solely because the same person or entity provided equity \n\line 227.26financing for the systems. \n\line 227.27{\ul EFFECTIVE DATE.}{\ul This section is effective for reports filed in 2017 and thereafter.} \n\line \n\line 227.28 Sec. 13. Minnesota Statutes 2014, section 272.029, is amended by adding a subdivision \n\line 227.29to read: \n\line 227.30 {\ul Subd. 8.} {\ul Extension.} {\ul The commissioner may, for good cause, extend the time for } \n\line 227.31{\ul filing the report required by subdivision 4. The extension must not exceed 15 days.} \n\line 227.32{\ul EFFECTIVE DATE.}{\ul This section is effective for reports filed in 2017 and thereafter.} \n\line \n\line 227.33 Sec. 14. Minnesota Statutes 2014, section 273.032, is amended to read: \n\line 228.1273.032 MARKET VALUE DEFINITION. \n\line 228.2 (a) Unless otherwise provided, for the purpose of determining any property tax \n\line 228.3levy limitation based on market value or any limit on net debt, the issuance of bonds, \n\line 228.4certificates of indebtedness, or capital notes based on market value, any qualification to \n\line 228.5receive state aid based on market value, or any state aid amount based on market value, \n\line 228.6the terms "market value," "estimated market value," and "market valuation," whether \n\line 228.7equalized or unequalized, mean the estimated market value of taxable property within the \n\line 228.8local unit of government before any of the following or similar adjustments for: \n\line 228.9 (1) the market value exclusions under: \n\line 228.10 (i) section \n\line 273.11, subdivisions 14a and 14c (vacant platted land); \n\line 228.11 (ii) section \n\line 273.11, subdivision 16 (certain improvements to homestead property); \n\line 228.12 (iii) section \n\line 273.11, subdivisions 19 and 20 (certain improvements to business \n\line 228.13properties); \n\line 228.14 (iv) section \n\line 273.11, subdivision 21 (homestead property damaged by mold); \n\line 228.15 {\strike (v) section }\n\line {\strike 273.11, subdivision 22}{\strike (qualifying lead hazardous reduction projects);} \n\line 228.16 {\strike (vi)}{\ul (v)} section \n\line 273.13, subdivision 34 (homestead of a disabled veteran or family \n\line 228.17caregiver); or \n\line 228.18 {\strike (vii)}{\ul (vi)} section \n\line 273.13, subdivision 35 (homestead market value exclusion); or \n\line 228.19 (2) the deferment of value under: \n\line 228.20 (i) the Minnesota Agricultural Property Tax Law, section \n\line 273.111; \n\line 228.21 (ii) the Aggregate Resource Preservation Law, section \n\line 273.1115; \n\line 228.22 (iii) the Minnesota Open Space Property Tax Law, section \n\line 273.112; \n\line 228.23 (iv) the rural preserves property tax program, section \n\line 273.114; or \n\line 228.24 (v) the Metropolitan Agricultural Preserves Act, section \n\line 473H.10; or \n\line 228.25 (3) the adjustments to tax capacity for: \n\line 228.26 (i) tax increment financing under sections \n\line 469.174 to \n\line 469.1794; \n\line 228.27 (ii) fiscal disparities under chapter 276A or 473F; or \n\line 228.28 (iii) powerline credit under section \n\line 273.425. \n\line 228.29 (b) Estimated market value under paragraph (a) also includes the market value \n\line 228.30of tax-exempt property if the applicable law specifically provides that the limitation, \n\line 228.31qualification, or aid calculation includes tax-exempt property. \n\line 228.32 (c) Unless otherwise provided, "market value," "estimated market value," and \n\line 228.33"market valuation" for purposes of property tax levy limitations and calculation of state \n\line 228.34aid, refer to the estimated market value for the previous assessment year and for purposes \n\line 228.35of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes \n\line 228.36refer to the estimated market value as last finally equalized. \n\line 229.1 (d) For purposes of a provision of a home rule charter or of any special law that is not \n\line 229.2codified in the statutes and that imposes a levy limitation based on market value or any limit \n\line 229.3on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market \n\line 229.4value, the terms "market value," "taxable market value," and "market valuation," whether \n\line 229.5equalized or unequalized, mean "estimated market value" as defined in paragraph (a). \n\line 229.6{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 229.7 Sec. 15. Minnesota Statutes 2014, section 273.061, subdivision 7, is amended to read: \n\line 229.8 Subd. 7. Division of duties between local and county assessor. The duty of the \n\line 229.9duly appointed local assessor shall be to view and appraise the value of all property as \n\line 229.10provided by law, but all the book work shall be done by the county assessor, or the \n\line 229.11assessor's assistants, and the value of all property subject to assessment and taxation shall \n\line 229.12be determined by the county assessor, except as otherwise hereinafter provided. If directed \n\line 229.13by the county assessor, the local assessor {\strike shall}{\ul must} perform the duties enumerated in \n\line 229.14subdivision 8, clause (16){\ul , and must enter construction and valuation data into the records } \n\line 229.15{\ul in the manner prescribed by the county assessor}. \n\line 229.16{\ul EFFECTIVE DATE.}{\ul This section is effective for assessment year 2017 and } \n\line 229.17{\ul thereafter.} \n\line \n\line 229.18 Sec. 16. Minnesota Statutes 2014, section 273.08, is amended to read: \n\line 229.19273.08 ASSESSOR'S DUTIES. \n\line 229.20The assessor shall actually view, and determine the market value of each tract or lot \n\line 229.21of real property listed for taxation, including the value of all improvements and structures \n\line 229.22thereon, at maximum intervals of five years and shall enter the value opposite each \n\line 229.23description.{\ul When directed by the county assessor, local assessors must enter construction } \n\line 229.24{\ul and valuation data into the records in the manner prescribed by the county assessor.} \n\line 229.25{\ul EFFECTIVE DATE.}{\ul This section is effective for assessment year 2017 and } \n\line 229.26{\ul thereafter.} \n\line \n\line 229.27 Sec. 17. Minnesota Statutes 2014, section 273.121, is amended by adding a subdivision \n\line 229.28to read: \n\line 229.29 {\ul Subd. 3.} {\ul Compliance.} {\ul A county assessor, or a city assessor having the powers } \n\line 229.30{\ul of a county assessor, who does not comply with the timely notice requirement under } \n\line 229.31{\ul subdivision 1 must:} \n\line 230.1{\ul (1) mail an additional valuation notice to each person who was not provided timely } \n\line 230.2{\ul notice; and} \n\line 230.3{\ul (2) convene a supplemental local board of appeal and equalization or local review } \n\line 230.4{\ul session no sooner than ten days after sending the additional notices required by clause (1).} \n\line 230.5{\ul EFFECTIVE DATE.}{\ul This section is effective for valuation notices sent in 2017 } \n\line 230.6{\ul and thereafter.} \n\line \n\line 230.7 Sec. 18. Minnesota Statutes 2014, section 273.13, subdivision 22, is amended to read: \n\line 230.8 Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) \n\line 230.9and (c), real estate which is residential and used for homestead purposes is class 1a. In the \n\line 230.10case of a duplex or triplex in which one of the units is used for homestead purposes, the \n\line 230.11entire property is deemed to be used for homestead purposes. The market value of class 1a \n\line 230.12property must be determined based upon the value of the house, garage, and land. \n\line 230.13 The first $500,000 of market value of class 1a property has a net classification rate \n\line 230.14of one percent of its market value; and the market value of class 1a property that exceeds \n\line 230.15$500,000 has a classification rate of 1.25 percent of its market value. \n\line 230.16 (b) Class 1b property includes homestead real estate or homestead manufactured \n\line 230.17homes used for the purposes of a homestead by: \n\line 230.18 (1) any person who is blind as defined in section \n\line 256D.35, or the blind person and \n\line 230.19the blind person's spouse; \n\line 230.20 (2) any person who is permanently and totally disabled or by the disabled person and \n\line 230.21the disabled person's spouse; or \n\line 230.22 (3) the surviving spouse of a permanently and totally disabled veteran homesteading \n\line 230.23a property classified under this paragraph for taxes payable in 2008. \n\line 230.24 Property is classified and assessed under clause (2) only if the government agency or \n\line 230.25income-providing source certifies, upon the request of the homestead occupant, that the \n\line 230.26homestead occupant satisfies the disability requirements of this paragraph, and that the \n\line 230.27property is not eligible for the valuation exclusion under subdivision 34. \n\line 230.28 Property is classified and assessed under paragraph (b) only if the commissioner \n\line 230.29of revenue or the county assessor certifies that the homestead occupant satisfies the \n\line 230.30requirements of this paragraph. \n\line 230.31 Permanently and totally disabled for the purpose of this subdivision means a \n\line 230.32condition which is permanent in nature and totally incapacitates the person from working \n\line 230.33at an occupation which brings the person an income. The first $50,000 market value of \n\line 230.34class 1b property has a net classification rate of .45 percent of its market value. The \n\line 231.1remaining market value of class 1b property {\strike has a classification rate using the rates for}{\ul is } \n\line 231.2{\ul classified as} class 1a or class 2a property, whichever is appropriate{\strike , of similar market value}. \n\line 231.3 (c) Class 1c property is commercial use real and personal property that abuts public \n\line 231.4water as defined in section \n\line 103G.005, subdivision 15, and is devoted to temporary and \n\line 231.5seasonal residential occupancy for recreational purposes but not devoted to commercial \n\line 231.6purposes for more than 250 days in the year preceding the year of assessment, and that \n\line 231.7includes a portion used as a homestead by the owner, which includes a dwelling occupied \n\line 231.8as a homestead by a shareholder of a corporation that owns the resort, a partner in a \n\line 231.9partnership that owns the resort, or a member of a limited liability company that owns the \n\line 231.10resort even if the title to the homestead is held by the corporation, partnership, or limited \n\line 231.11liability company. For purposes of this paragraph, property is devoted to a commercial \n\line 231.12purpose on a specific day if any portion of the property, excluding the portion used \n\line 231.13exclusively as a homestead, is used for residential occupancy and a fee is charged for \n\line 231.14residential occupancy. Class 1c property must contain three or more rental units. A "rental \n\line 231.15unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping \n\line 231.16site equipped with water and electrical hookups for recreational vehicles. Class 1c property \n\line 231.17must provide recreational activities such as the rental of ice fishing houses, boats and \n\line 231.18motors, snowmobiles, downhill or cross-country ski equipment; provide marina services, \n\line 231.19launch services, or guide services; or sell bait and fishing tackle. Any unit in which the \n\line 231.20right to use the property is transferred to an individual or entity by deeded interest, or the \n\line 231.21sale of shares or stock, no longer qualifies for class 1c even though it may remain available \n\line 231.22for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c \n\line 231.23is also class 1c, regardless of the term of the rental agreement, as long as the use of the \n\line 231.24camping pad does not exceed 250 days. If the same owner owns two separate parcels that \n\line 231.25are located in the same township, and one of those properties is classified as a class 1c \n\line 231.26property and the other would be eligible to be classified as a class 1c property if it was \n\line 231.27used as the homestead of the owner, both properties will be assessed as a single class 1c \n\line 231.28property; for purposes of this sentence, properties are deemed to be owned by the same \n\line 231.29owner if each of them is owned by a limited liability company, and both limited liability \n\line 231.30companies have the same membership. The portion of the property used as a homestead \n\line 231.31is class 1a property under paragraph (a). The remainder of the property is classified as \n\line 231.32follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value \n\line 231.33is tier II, and any remaining market value is tier III. The classification rates for class 1c \n\line 231.34are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and \n\line 231.35personal property devoted to temporary and seasonal residential occupancy for recreation \n\line 231.36purposes in which all or a portion of the property was devoted to commercial purposes for \n\line 232.1not more than 250 days in the year preceding the year of assessment desiring classification \n\line 232.2as class 1c, must submit a declaration to the assessor designating the cabins or units \n\line 232.3occupied for 250 days or less in the year preceding the year of assessment by January 15 of \n\line 232.4the assessment year. Those cabins or units and a proportionate share of the land on which \n\line 232.5they are located must be designated as class 1c as otherwise provided. The remainder of \n\line 232.6the cabins or units and a proportionate share of the land on which they are located must be \n\line 232.7designated as class 3a commercial. The owner of property desiring designation as class \n\line 232.81c property must provide guest registers or other records demonstrating that the units for \n\line 232.9which class 1c designation is sought were not occupied for more than 250 days in the \n\line 232.10year preceding the assessment if so requested. The portion of a property operated as a \n\line 232.11(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other \n\line 232.12nonresidential facility operated on a commercial basis not directly related to temporary \n\line 232.13and seasonal residential occupancy for recreation purposes does not qualify for class 1c. \n\line 232.14 (d) Class 1d property includes structures that meet all of the following criteria: \n\line 232.15 (1) the structure is located on property that is classified as agricultural property under \n\line 232.16section \n\line 273.13, subdivision 23; \n\line 232.17 (2) the structure is occupied exclusively by seasonal farm workers during the time \n\line 232.18when they work on that farm, and the occupants are not charged rent for the privilege of \n\line 232.19occupying the property, provided that use of the structure for storage of farm equipment \n\line 232.20and produce does not disqualify the property from classification under this paragraph; \n\line 232.21 (3) the structure meets all applicable health and safety requirements for the \n\line 232.22appropriate season; and \n\line 232.23 (4) the structure is not salable as residential property because it does not comply \n\line 232.24with local ordinances relating to location in relation to streets or roads. \n\line 232.25 The market value of class 1d property has the same classification rates as class \n\line 232.261a property under paragraph (a). \n\line 232.27{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 232.28 Sec. 19. Minnesota Statutes 2014, section 273.33, subdivision 1, is amended to read: \n\line 232.29 Subdivision 1. Listing and assessment in county. The personal property of express, \n\line 232.30stage and transportation companies, and of pipeline companies engaged in the business \n\line 232.31of transporting {\strike natural gas, gasoline, crude oil, or other petroleum} products{\ul ,} except as \n\line 232.32otherwise provided by law, shall be listed and assessed in the county, town or district \n\line 232.33where the same is usually kept. \n\line 232.34{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 233.1 Sec. 20. Minnesota Statutes 2014, section 273.33, subdivision 2, is amended to read: \n\line 233.2 Subd. 2. Listing and assessment by commissioner. The personal property, \n\line 233.3consisting of the pipeline system of mains, pipes, and equipment attached thereto, of \n\line 233.4pipeline companies and others engaged in the operations or business of transporting \n\line 233.5{\strike natural gas, gasoline, crude oil, or other petroleum} products by pipelines, shall be listed \n\line 233.6with and assessed by the commissioner of revenue and the values provided to the \n\line 233.7city or county assessor by order. This subdivision shall not apply to the assessment of \n\line 233.8the products transported through the pipelines nor to the lines of local commercial gas \n\line 233.9companies engaged primarily in the business of distributing {\strike gas}{\ul products} to consumers at \n\line 233.10retail nor to pipelines used by the owner thereof to supply {\strike natural gas or other petroleum } \n\line 233.11products exclusively for such owner's own consumption and not for resale to others. If \n\line 233.12more than 85 percent of the {\strike natural gas or other petroleum} products actually transported \n\line 233.13over the pipeline is used for the owner's own consumption and not for resale to others, \n\line 233.14then this subdivision shall not apply; provided, however, that in that event, the pipeline \n\line 233.15shall be assessed in proportion to the percentage of {\strike gas}{\ul products} actually transported over \n\line 233.16such pipeline that is not used for the owner's own consumption. On or before August 1, \n\line 233.17the commissioner shall certify to the auditor of each county, the amount of such personal \n\line 233.18property assessment against each company in each district in which such property is \n\line 233.19located. If the commissioner determines that the amount of personal property assessment \n\line 233.20certified on or before August 1 is in error, the commissioner may issue a corrected \n\line 233.21certification on or before October 1. The commissioner may correct errors that are merely \n\line 233.22clerical in nature until December 31. \n\line 233.23{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 233.24 Sec. 21. Minnesota Statutes 2014, section 273.372, subdivision 1, is amended to read: \n\line 233.25 Subdivision 1. Scope. (a) As provided in this section, an appeal by a utility or \n\line 233.26railroad company concerning property for which the commissioner of revenue has provided \n\line 233.27the city or county assessor with valuations by order, or for which the commissioner \n\line 233.28has recommended values to the city or county assessor, must be brought against the \n\line 233.29commissioner{\strike ,} and {\strike not against} the county or taxing district where the property is located. \n\line 233.30{\ul Service must be made on the commissioner only, and not on the county or taxing district.} \n\line 233.31(b) This section governs administrative appeals and appeals to court of a claim that \n\line 233.32utility or railroad operating property has been partially, unfairly, or unequally assessed, \n\line 233.33or assessed at a valuation greater than its real or actual value, misclassified, or that the \n\line 233.34property is exempt. This section applies only to property described in sections \n\line 270.81, \n\line 233.35subdivision 1\n\line , \n\line 273.33, \n\line 273.35, \n\line 273.36, and \n\line 273.37, and only with regard to taxable net tax \n\line 234.1capacities that have been provided to the city or county by the commissioner and which \n\line 234.2have not been changed by city or county. If the taxable net tax capacity being appealed is \n\line 234.3not the taxable net tax capacity established by the commissioner, or if the appeal claims \n\line 234.4that the tax rate applied against the parcel is incorrect, or that the tax has been paid, this \n\line 234.5section does not apply. \n\line 234.6{\ul EFFECTIVE DATE.}{\ul This section is effective for appeals of valuations made in } \n\line 234.7{\ul assessment year 2017 and thereafter.} \n\line \n\line 234.8 Sec. 22. Minnesota Statutes 2014, section 273.372, subdivision 2, is amended to read: \n\line 234.9 Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required \n\line 234.10to be brought against the commissioner under this section, the petition initiating the appeal \n\line 234.11must be served on the commissioner and must be filed with the Tax Court in Ramsey \n\line 234.12County, as provided in paragraph (b) or (c). \n\line 234.13(b) If the appeal to court is from an order of the commissioner, it must be brought \n\line 234.14under chapter 271{\ul and filed within the time period prescribed in section 271.06, } \n\line 234.15{\ul subdivision 2}, except that when the provisions of this section conflict with chapter \n\line 234.16271{\ul or 278}, this section prevails. In addition, the petition must include all the parcels \n\line 234.17encompassed by that order which the petitioner claims have been partially, unfairly, \n\line 234.18or unequally assessed, assessed at a valuation greater than their real or actual value, \n\line 234.19misclassified, or are exempt. For this purpose, an order of the commissioner is either (1) a \n\line 234.20certification or notice of value by the commissioner for property described in subdivision \n\line 234.211, or (2) the final determination by the commissioner of either an administrative appeal \n\line 234.22conference or informal administrative appeal described in subdivision 4. \n\line 234.23(c) If the appeal is from the tax that results from implementation of the \n\line 234.24commissioner's order, certification, or recommendation, it must be brought under \n\line 234.25chapter 278, and the provisions in that chapter apply, except that service shall be on the \n\line 234.26commissioner only and not on the local officials specified in section \n\line 278.01, subdivision 1, \n\line 234.27and if any other provision of this section conflicts with chapter 278, this section prevails. \n\line 234.28In addition, the petition must include either all the utility parcels or all the railroad parcels \n\line 234.29in the state in which the petitioner claims an interest and which the petitioner claims have \n\line 234.30been partially, unfairly, or unequally assessed, assessed at a valuation greater than their \n\line 234.31real or actual value, misclassified, or are exempt. \n\line 234.32{\ul EFFECTIVE DATE.}{\ul This section is effective for assessment year 2017 and } \n\line 234.33{\ul thereafter.} \n\line \n\line 235.1 Sec. 23. Minnesota Statutes 2014, section 273.372, subdivision 4, is amended to read: \n\line 235.2 Subd. 4. Administrative appeals. (a) Companies that submit the reports under \n\line 235.3section \n\line 270.82 or \n\line 273.371 by the date specified in that section, or by the date specified \n\line 235.4by the commissioner in an extension, may appeal administratively to the commissioner \n\line 235.5prior to bringing an action in court. \n\line 235.6 (b) Companies {\strike that} must {\strike submit reports under section }\n\line {\strike 270.82}{\strike must submit}{\ul file} a \n\line 235.7written request {\strike to}{\ul for an appeal with} the commissioner {\strike for a conference} within {\strike ten}{\ul 30 } \n\line 235.8days after the {\ul notice }date of the commissioner's valuation certification or {\ul other }notice \n\line 235.9to the company{\strike , or by June 15, whichever is earlier}.{\ul For purposes of this section, the } \n\line 235.10{\ul term "notice date" means the date of the valuation certification, commissioner's order, } \n\line 235.11{\ul recommendation, or other notice.} \n\line 235.12 (c) {\strike Companies that submit reports under section }\n\line {\strike 273.371}{\strike must submit a written } \n\line 235.13{\strike request to the commissioner for a conference within ten days after the date of the } \n\line 235.14{\strike commissioner's valuation certification or notice to the company, or by July 1, whichever } \n\line 235.15{\strike is earlier.}{\ul The appeal need not be in any particular form but must contain the following } \n\line 235.16{\ul information:} \n\line 235.17 {\ul (1) name and address of the company;} \n\line 235.18 {\ul (2) the date;} \n\line 235.19 {\ul (3) its Minnesota identification number;} \n\line 235.20 {\ul (4) the assessment year or period involved;} \n\line 235.21 {\ul (5) the findings in the valuation that the company disputes;} \n\line 235.22 {\ul (6) a summary statement specifying its reasons for disputing each item; and} \n\line 235.23 {\ul (7) the signature of the company's duly authorized agent or representative.} \n\line 235.24 {\ul (d) When requested in writing and within the time allowed for filing an } \n\line 235.25{\ul administrative appeal, the commissioner may extend the time for filing an appeal for a } \n\line 235.26{\ul period of not more than 15 days from the expiration of the time for filing the appeal.} \n\line 235.27 {\strike (d)}{\ul (e)} The commissioner shall conduct the conference {\ul either in person or by } \n\line 235.28{\ul telephone }upon the commissioner's entire files and records and such further information as \n\line 235.29may be offered. The conference must be held no later than 20 days after the date of the \n\line 235.30{\strike commissioner's valuation certification or notice to the company, or by the date specified } \n\line 235.31{\strike by the commissioner in an extension}{\ul request for an appeal}. Within {\strike 60}{\ul 30} days after the \n\line 235.32conference the commissioner shall make a final determination of the matter and shall \n\line 235.33notify the company promptly of the determination. The conference is not a contested \n\line 235.34case hearing{\ul subject to chapter 14}. \n\line 235.35 {\strike (e) In addition to the opportunity for a conference under paragraph (a), the } \n\line 235.36{\strike commissioner shall also provide the railroad and utility companies the opportunity to } \n\line 236.1{\strike discuss any questions or concerns relating to the values established by the commissioner } \n\line 236.2{\strike through certification or notice in a less formal manner. This does not change or modify } \n\line 236.3{\strike the deadline for requesting a conference under paragraph (a), the deadline in section } \n\line 236.4{\strike 271.06}{\strike for appealing an order of the commissioner, or the deadline in section }\n\line {\strike 278.01}{\strike for } \n\line 236.5{\strike appealing property taxes in court.} \n\line 236.6{\ul EFFECTIVE DATE.}{\ul This section is effective for assessment year 2017 and } \n\line 236.7{\ul thereafter.} \n\line \n\line 236.8 Sec. 24. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision \n\line 236.9to read: \n\line 236.10 {\ul Subd. 5.} {\ul Agreement determining valuation.} {\ul When it appears to be in the best } \n\line 236.11{\ul interest of the state, the commissioner may settle any matter under consideration regarding } \n\line 236.12{\ul an appeal filed under this section. The agreement must be in writing and signed by } \n\line 236.13{\ul the commissioner and the company or the company's authorized representative. The } \n\line 236.14{\ul agreement is final and conclusive, and except upon a showing of fraud, malfeasance, } \n\line 236.15{\ul or misrepresentation of a material fact, the case may not be reopened as to the matters } \n\line 236.16{\ul agreed upon.} \n\line 236.17{\ul EFFECTIVE DATE.}{\ul This section is effective for assessment year 2017 and } \n\line 236.18{\ul thereafter.} \n\line \n\line 236.19 Sec. 25. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision \n\line 236.20to read: \n\line 236.21 {\ul Subd. 6.} {\ul Dismissal of administrative appeal.} {\ul If a taxpayer files an administrative } \n\line 236.22{\ul appeal from an order of the commissioner and also files an appeal to the tax court for } \n\line 236.23{\ul that same order of the commissioner, the administrative appeal is dismissed and the } \n\line 236.24{\ul commissioner is no longer required to make the determination of appeal under subdivision } \n\line 236.25{\ul 4.} \n\line 236.26{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with assessment year 2016.} \n\line \n\line 236.27 Sec. 26. {\ul [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.} \n\line 236.28{\ul After making the apportionment provided in Minnesota Rules, part 8100.0600, the } \n\line 236.29{\ul commissioner must equalize the values of the operating structures to the level accepted by } \n\line 236.30{\ul the State Board of Equalization if the appropriate sales ratio for each county, as conducted } \n\line 236.31{\ul by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is } \n\line 236.32{\ul outside the range accepted by the State Board of Equalization. The commissioner must } \n\line 237.1{\ul not equalize the value of the operating structures if the sales ratio determined pursuant to } \n\line 237.2{\ul this subdivision is within the range accepted by the State Board of Equalization.} \n\line 237.3{\ul EFFECTIVE DATE.}{\ul This section is effective beginning with assessment year 2016.} \n\line \n\line 237.4 Sec. 27. Minnesota Statutes 2014, section 274.01, subdivision 1, is amended to read: \n\line 237.5 Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town \n\line 237.6board of a town, or the council or other governing body of a city, is the {\ul local }board \n\line 237.7of appeal and equalization except (1) in cities whose charters provide for a board of \n\line 237.8equalization or (2) in any city or town that has transferred its local board of review power \n\line 237.9and duties to the county board as provided in subdivision 3. The county assessor shall \n\line 237.10fix a day and time when {\strike the board or} the {\ul local }board of equalization shall meet in the \n\line 237.11assessment districts of the county. Notwithstanding any law or city charter to the contrary, \n\line 237.12a city board of equalization shall be referred to as a {\ul local }board of appeal and equalization. \n\line 237.13On or before February 15 of each year the assessor shall give written notice of the time \n\line 237.14to the city or town clerk. Notwithstanding the provisions of any charter to the contrary, \n\line 237.15the meetings must be held between April 1 and May 31 each year. The clerk shall give \n\line 237.16published and posted notice of the meeting at least ten days before the date of the meeting. \n\line 237.17 The board shall meet either at a central location within the county or at the office of \n\line 237.18the clerk to review the assessment and classification of property in the town or city. No \n\line 237.19changes in valuation or classification which are intended to correct errors in judgment by \n\line 237.20the county assessor may be made by the county assessor after the board has adjourned \n\line 237.21in those cities or towns that hold a local board of review; however, corrections of errors \n\line 237.22that are merely clerical in nature or changes that extend homestead treatment to property \n\line 237.23are permitted after adjournment until the tax extension date for that assessment year. The \n\line 237.24changes must be fully documented and maintained in the assessor's office and must be \n\line 237.25available for review by any person. A copy of the changes made during this period in \n\line 237.26those cities or towns that hold a local board of review must be sent to the county board no \n\line 237.27later than December 31 of the assessment year. \n\line 237.28 (b) The board shall determine whether the taxable property in the town or city has \n\line 237.29been properly placed on the list and properly valued by the assessor. If real or personal \n\line 237.30property has been omitted, the board shall place it on the list with its market value, and \n\line 237.31correct the assessment so that each tract or lot of real property, and each article, parcel, \n\line 237.32or class of personal property, is entered on the assessment list at its market value. No \n\line 237.33assessment of the property of any person may be raised unless the person has been \n\line 237.34duly notified of the intent of the board to do so. On application of any person feeling \n\line 237.35aggrieved, the board shall review the assessment or classification, or both, and correct \n\line 238.1it as appears just. The board may not make an individual market value adjustment or \n\line 238.2classification change that would benefit the property if the owner or other person having \n\line 238.3control over the property has refused the assessor access to inspect the property and the \n\line 238.4interior of any buildings or structures as provided in section \n\line 273.20. A board member \n\line 238.5shall not participate in any actions of the board which result in market value adjustments \n\line 238.6or classification changes to property owned by the board member, the spouse, parent, \n\line 238.7stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, \n\line 238.8or niece of a board member, or property in which a board member has a financial interest. \n\line 238.9The relationship may be by blood or marriage. \n\line 238.10 (c) A local board may reduce assessments upon petition of the taxpayer but the total \n\line 238.11reductions must not reduce the aggregate assessment made by the county assessor by more \n\line 238.12than one percent. If the total reductions would lower the aggregate assessments made by \n\line 238.13the county assessor by more than one percent, none of the adjustments may be made. The \n\line 238.14assessor shall correct any clerical errors or double assessments discovered by the board \n\line 238.15without regard to the one percent limitation. \n\line 238.16 (d) A local board does not have authority to grant an exemption or to order property \n\line 238.17removed from the tax rolls. \n\line 238.18 (e) A majority of the members may act at the meeting, and adjourn from day to day \n\line 238.19until they finish hearing the cases presented. The assessor shall attend and take part in \n\line 238.20the proceedings, but must not vote. The county assessor, or an assistant delegated by the \n\line 238.21county assessor shall attend the meetings. The board shall list separately all omitted \n\line 238.22property added to the list by the board and all items of property increased or decreased, \n\line 238.23with the market value of each item of property, added or changed by the board. The \n\line 238.24county assessor shall enter all changes made by the board. \n\line 238.25 (f) Except as provided in subdivision 3, if a person fails to appear in person, by \n\line 238.26counsel, or by written communication before the board after being duly notified of the \n\line 238.27board's intent to raise the assessment of the property, or if a person feeling aggrieved by an \n\line 238.28assessment or classification fails to apply for a review of the assessment or classification, \n\line 238.29the person may not appear before the county board of appeal and equalization for a review. \n\line 238.30This paragraph does not apply if an assessment was made after the local board meeting, as \n\line 238.31provided in section \n\line 273.01, or if the person can establish not having received notice of \n\line 238.32market value at least five days before the local board meeting. \n\line 238.33 (g) The local board must complete its work and adjourn within 20 days from the \n\line 238.34time of convening stated in the notice of the clerk, unless a longer period is approved by \n\line 238.35the commissioner of revenue. No action taken after that date is valid. All complaints \n\line 238.36about an assessment or classification made after the meeting of the board must be heard \n\line 239.1and determined by the county board of equalization. A nonresident may, at any time, \n\line 239.2before the meeting of the board file written objections to an assessment or classification \n\line 239.3with the county assessor. The objections must be presented to the board at its meeting by \n\line 239.4the county assessor for its consideration. \n\line 239.5{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 239.6 Sec. 28. Minnesota Statutes 2014, section 274.13, subdivision 1, is amended to read: \n\line 239.7 Subdivision 1. Members; meetings; rules for equalizing assessments. The county \n\line 239.8commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be \n\line 239.9present, the deputy county auditor, or, if there is no deputy, the court administrator of the \n\line 239.10district court, shall form a board for the equalization of the assessment of the property \n\line 239.11of the county, including the property of all cities whose charters provide for a board of \n\line 239.12equalization. This board shall be referred to as the county board of appeal and equalization. \n\line 239.13The board shall meet annually, on the date specified in section \n\line 274.14, at the office of the \n\line 239.14auditor. Each member shall take an oath to fairly and impartially perform duties as a \n\line 239.15member. Members shall not participate in any actions of the board which result in market \n\line 239.16value adjustments or classification changes to property owned by the board member, the \n\line 239.17spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, \n\line 239.18aunt, nephew, or niece of a board member, or property in which a board member has a \n\line 239.19financial interest. The relationship may be by blood or marriage. The board shall examine \n\line 239.20and compare the returns of the assessment of property of the towns or districts, and \n\line 239.21equalize them so that each tract or lot of real property and each article or class of personal \n\line 239.22property is entered on the assessment list at its market value, subject to the following rules: \n\line 239.23 (1) The board shall raise the valuation of each tract or lot of real property which \n\line 239.24in its opinion is returned below its market value to the sum believed to be its market \n\line 239.25value. The board must first give notice of intention to raise the valuation to the person in \n\line 239.26whose name it is assessed, if the person is a resident of the county. The notice must fix \n\line 239.27a time and place for a hearing. \n\line 239.28 (2) The board shall reduce the valuation of each tract or lot which in its opinion is \n\line 239.29returned above its market value to the sum believed to be its market value. \n\line 239.30 (3) The board shall raise the valuation of each class of personal property which \n\line 239.31in its opinion is returned below its market value to the sum believed to be its market \n\line 239.32value. It shall raise the aggregate value of the personal property of individuals, firms, or \n\line 239.33corporations, when it believes that the aggregate valuation, as returned, is less than the \n\line 239.34market value of the taxable personal property possessed by the individuals, firms, or \n\line 240.1corporations, to the sum it believes to be the market value. The board must first give notice \n\line 240.2to the persons of intention to do so. The notice must set a time and place for a hearing. \n\line 240.3 (4) The board shall reduce the valuation of each class of personal property that \n\line 240.4is returned above its market value to the sum it believes to be its market value. Upon \n\line 240.5complaint of a party aggrieved, the board shall reduce the aggregate valuation of the \n\line 240.6individual's personal property, or of any class of personal property for which the individual \n\line 240.7is assessed, which in its opinion has been assessed at too large a sum, to the sum it believes \n\line 240.8was the market value of the individual's personal property of that class. \n\line 240.9 (5) The board must not reduce the aggregate value of all the property of its county, as \n\line 240.10submitted to the county board of equalization, with the additions made by the auditor under \n\line 240.11this chapter, by more than one percent of its whole valuation. The board may raise the \n\line 240.12aggregate valuation of real property, and of each class of personal property, of the county, \n\line 240.13or of any town or district of the county, when it believes it is below the market value of the \n\line 240.14property, or class of property, to the aggregate amount it believes to be its market value. \n\line 240.15 (6) The board shall change the classification of any property which in its opinion \n\line 240.16is not properly classified. \n\line 240.17 (7) The board does not have the authority to grant an exemption or to order property \n\line 240.18removed from the tax rolls. \n\line 240.19 {\ul (8) The board may not make an individual market value adjustment or classification } \n\line 240.20{\ul change that would benefit property if the owner or other person having control over the } \n\line 240.21{\ul property has refused the assessor access to inspect the property and the interior of any } \n\line 240.22{\ul buildings or structures as provided in section 273.20.} \n\line 240.23{\ul EFFECTIVE DATE.}{\ul This section is effective for county board of appeal and } \n\line 240.24{\ul equalization meetings in 2017 and thereafter.} \n\line \n\line 240.25 Sec. 29. Minnesota Statutes 2014, section 274.135, subdivision 3, is amended to read: \n\line 240.26 Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts \n\line 240.27county boards of appeal and equalization meetings must provide proof to the commissioner \n\line 240.28by {\strike December 1, 2009, and each year thereafter,}{\ul February 1 } that it is in compliance with the \n\line 240.29requirements of subdivision 2. {\strike Beginning in 2009,} This notice must also verify that there \n\line 240.30was a quorum of voting members at each meeting of the board of appeal and equalization \n\line 240.31in the {\strike current}{\ul previous} year. A county that does not comply with these requirements is \n\line 240.32deemed to have transferred its board of appeal and equalization powers to the special \n\line 240.33board of equalization appointed pursuant to section \n\line 274.13, subdivision 2, beginning \n\line 240.34with the following year's assessment and continuing unless the powers are reinstated \n\line 240.35under paragraph (c). A county that does not comply with the requirements of subdivision \n\line 241.12 and has not appointed a special board of equalization shall appoint a special board of \n\line 241.2equalization before the following year's assessment. \n\line 241.3 (b) The county shall notify the taxpayers when the board of appeal and equalization \n\line 241.4for a county has been transferred to the special board of equalization under this subdivision \n\line 241.5and, prior to the meeting time of the special board of equalization, the county shall make \n\line 241.6available to those taxpayers a procedure for a review of the assessments, including, but \n\line 241.7not limited to, open book meetings. This alternate review process must take place in \n\line 241.8April and May. \n\line 241.9 (c) A county board whose powers are transferred to the special board of equalization \n\line 241.10under this subdivision may be reinstated by resolution of the county board and upon proof \n\line 241.11of compliance with the requirements of subdivision 2. The resolution and proofs must \n\line 241.12be provided to the commissioner by {\strike December}{\ul February} 1 in order to be effective for \n\line 241.13the {\strike following}{\ul current} year's assessment. \n\line 241.14(d) If a person who was entitled to appeal to the county board of appeal and \n\line 241.15equalization or to the county special board of equalization is not able to do so in a \n\line 241.16particular year because the county board or special board did not meet the quorum and \n\line 241.17training requirements in this section and section \n\line 274.13, or because the special board \n\line 241.18was not appointed, that person may instead appeal to the commissioner of revenue, \n\line 241.19provided that the appeal is received by the commissioner prior to August 1. The appeal \n\line 241.20is not subject to either chapter 14 or section \n\line 270C.92. The commissioner must issue \n\line 241.21an appropriate order to the county assessor in response to each timely appeal, either \n\line 241.22upholding or changing the valuation or classification of the property. Prior to October 1 of \n\line 241.23each year, the commissioner must charge and bill the county where the property is located \n\line 241.24$500 for each tax parcel covered by an order issued under this paragraph in that year. \n\line 241.25Amounts received by the commissioner under this paragraph must be deposited in the \n\line 241.26state's general fund. If payment of a billed amount is not received by the commissioner \n\line 241.27before December 1 of the year when billed, the commissioner must deduct that unpaid \n\line 241.28amount from any state aid the commissioner would otherwise pay to the county under \n\line 241.29chapter 477A in the next year. Late payments may either be returned to the county \n\line 241.30uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid \n\line 241.31paid to the county under chapter 477A must be adjusted within 12 months to eliminate any \n\line 241.32reduction that occurred because the payment was late. Amounts needed to make these \n\line 241.33adjustments are included in the appropriation under section \n\line 477A.03, subdivision 2. \n\line 241.34{\ul EFFECTIVE DATE.}{\ul This section is effective for county boards of appeal and } \n\line 241.35{\ul equalization meetings held in 2017 and thereafter.} \n\line \n\line 242.1 Sec. 30. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read: \n\line 242.2 Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the \n\line 242.3contrary, on or before September 30, each county and each home rule charter or statutory \n\line 242.4city shall certify to the county auditor the proposed property tax levy for taxes payable in \n\line 242.5the following year. \n\line 242.6 (b) Notwithstanding any law or charter to the contrary, on or before September 15, \n\line 242.7each town and each special taxing district shall adopt and certify to the county auditor a \n\line 242.8proposed property tax levy for taxes payable in the following year. For towns, the final \n\line 242.9certified levy shall also be considered the proposed levy. \n\line 242.10 (c) On or before September 30, each school district that has not mutually agreed \n\line 242.11with its home county to extend this date shall certify to the county auditor the proposed \n\line 242.12property tax levy for taxes payable in the following year. Each school district that has \n\line 242.13agreed with its home county to delay the certification of its proposed property tax levy \n\line 242.14must certify its proposed property tax levy for the following year no later than October \n\line 242.157. The school district shall certify the proposed levy as: \n\line 242.16 (1) a specific dollar amount by school district fund, broken down between \n\line 242.17voter-approved and non-voter-approved levies and between referendum market value \n\line 242.18and tax capacity levies; or \n\line 242.19 (2) the maximum levy limitation certified by the commissioner of education \n\line 242.20according to section \n\line 126C.48, subdivision 1. \n\line 242.21 (d) If the board of estimate and taxation or any similar board that establishes \n\line 242.22maximum tax levies for taxing jurisdictions within a first class city certifies the maximum \n\line 242.23property tax levies for funds under its jurisdiction by charter to the county auditor by the \n\line 242.24date specified in paragraph (a), the city shall be deemed to have certified its levies for \n\line 242.25those taxing jurisdictions. \n\line 242.26 (e) For purposes of this section, "special taxing district" means a special taxing \n\line 242.27district as defined in section \n\line 275.066. Intermediate school districts that levy a tax \n\line 242.28under chapter 124 or 136D, joint powers boards established under sections \n\line 123A.44 to \n\line \n\line 242.29123A.446\n\line , and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are \n\line 242.30also special taxing districts for purposes of this section. \n\line 242.31(f) At the meeting at which a taxing authority, other than a town, adopts its proposed \n\line 242.32tax levy under this subdivision, the taxing authority shall announce the time and place \n\line 242.33of {\strike its}{\ul any} subsequent regularly scheduled meetings at which the budget and levy will be \n\line 242.34discussed and at which the public will be allowed to speak. The time and place of those \n\line 242.35meetings must be included in the proceedings or summary of proceedings published in the \n\line 242.36official newspaper of the taxing authority under section \n\line 123B.09, \n\line 375.12, or \n\line 412.191. \n\line 243.1{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 243.2 Sec. 31. Minnesota Statutes 2014, section 275.62, subdivision 2, is amended to read: \n\line 243.3 Subd. 2. Local governments required to report. For purposes of this section, \n\line 243.4"local governmental unit" means a county, home rule charter or statutory city with a \n\line 243.5population greater than 2,500{\strike , a town with a population greater than 5,000, or a home rule } \n\line 243.6{\strike charter or statutory city or town that receives a distribution from the taconite municipal aid } \n\line 243.7{\strike account in the levy year}. \n\line 243.8{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 243.9 Sec. 32. Minnesota Statutes 2014, section 278.01, subdivision 1, is amended to read: \n\line 243.10 Subdivision 1. Determination of validity. (a) Any person having personal property, \n\line 243.11or any estate, right, title, or interest in or lien upon any parcel of land, who claims that \n\line 243.12such property has been partially, unfairly, or unequally assessed in comparison with other \n\line 243.13property in the (1) city, or (2) county, or (3) in the case of a county containing a city of the \n\line 243.14first class, the portion of the county excluding the first class city, or that the parcel has \n\line 243.15been assessed at a valuation greater than its real or actual value, or that the tax levied \n\line 243.16against the same is illegal, in whole or in part, or has been paid, or that the property is \n\line 243.17exempt from the tax so levied, may have the validity of the claim, defense, or objection \n\line 243.18determined by the district court of the county in which the tax is levied or by the Tax \n\line 243.19Court by serving one copy of a petition for such determination upon the county auditor, \n\line 243.20one copy on the county attorney, one copy on the county treasurer, and three copies on the \n\line 243.21county assessor. The county assessor shall immediately forward one copy of the petition \n\line 243.22to the appropriate governmental authority in a home rule charter or statutory city or town \n\line 243.23in which the property is located if that city or town employs its own certified assessor. \n\line 243.24A copy of the petition shall also be forwarded by the assessor to the school board of the \n\line 243.25school district in which the property is located. \n\line 243.26(b) In counties where the office of county treasurer has been combined with the \n\line 243.27office of county auditor, the county may elect to require the petitioner to serve the number \n\line 243.28of copies as determined by the county. The county assessor shall immediately forward one \n\line 243.29copy of the petition to the appropriate governmental authority in a home rule charter or \n\line 243.30statutory city or town in which the property is located if that city or town employs its own \n\line 243.31certified assessor. A list of petitioned properties, including the name of the petitioner, the \n\line 243.32identification number of the property, and the estimated market value, shall be sent on \n\line 243.33or before the first day of July by the county auditor/treasurer to the school board of the \n\line 243.34school district in which the property is located. \n\line 244.1(c) For all counties, the petitioner must file the copies with proof of service, in the \n\line 244.2office of the court administrator of the district court on or before April 30 of the year in \n\line 244.3which the tax becomes payable. A petition for determination under this section may be \n\line 244.4transferred by the district court to the Tax Court. An appeal may also be taken to the Tax \n\line 244.5Court under chapter 271 at any time following receipt of the valuation notice{\ul that county } \n\line 244.6{\ul assessors or city assessors having the powers of a county assessor are} required by section \n\line \n\line 244.7273.121\n\line {\ul to send to persons whose property is to be included on the assessment roll that } \n\line 244.8{\ul year,} but prior to May 1 of the year in which the taxes are payable. \n\line 244.9{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 244.10 Sec. 33. Minnesota Statutes 2014, section 282.01, subdivision 1a, is amended to read: \n\line 244.11 Subd. 1a. Conveyance to public entities. (a) Upon written request from a state \n\line 244.12agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited land \n\line 244.13must be withheld from sale or lease to others for a maximum of six months. The request \n\line 244.14must be submitted to the county auditor. Upon receipt, the county auditor must withhold \n\line 244.15the parcel from sale or lease to any other party for six months, and must confirm the \n\line 244.16starting date of the six-month withholding period to the requesting agency or subdivision. \n\line 244.17If the request is from a governmental subdivision of the state, the governmental \n\line 244.18subdivision must pay the maintenance costs incurred by the county during the period the \n\line 244.19parcel is withheld. The county board may approve a sale or conveyance to the requesting \n\line 244.20party during the withholding period. A conveyance of the property to the requesting \n\line 244.21party terminates the withholding period. \n\line 244.22A governmental subdivision of the state must not make, and a county auditor must \n\line 244.23not act upon, a second request to withhold a parcel from sale or lease within 18 months \n\line 244.24of a previous request for that parcel. A county may reject a request made under this \n\line 244.25paragraph if the request is made more than 30 days after the county has given notice to the \n\line 244.26requesting state agency or governmental subdivision of the state that the county intends to \n\line 244.27sell or otherwise dispose of the property. \n\line 244.28(b) Nonconservation tax-forfeited lands may be sold by the county board, for \n\line 244.29their market value as determined by the county board, to an organized or incorporated \n\line 244.30governmental subdivision of the state for any public purpose for which the subdivision is \n\line 244.31authorized to acquire property. When the term "market value" is used in this section, it \n\line 244.32means an estimate of the full and actual market value of the parcel as determined by the \n\line 244.33county board, but in making this determination, the board and the persons employed by or \n\line 244.34under contract with the board in order to perform, conduct, or assist in the determination, \n\line 244.35are exempt from the licensure requirements of chapter 82B. \n\line 245.1(c) Nonconservation tax-forfeited lands may be {\strike released from the trust in favor of } \n\line 245.2{\strike the taxing districts on application to} {\ul sold by }the county board {\strike by}{\ul , for their market value as } \n\line 245.3{\ul determined by the county board, to} a state agency for {\strike an authorized use at not less than } \n\line 245.4{\strike their market value as determined by the county board}{\ul any public purpose for which the } \n\line 245.5{\ul agency is authorized to acquire property}. \n\line 245.6(d) Nonconservation tax-forfeited lands may be sold by the county board to an \n\line 245.7organized or incorporated governmental subdivision of the state or state agency for less \n\line 245.8than their market value if: \n\line 245.9(1) the county board determines that a sale at a reduced price is in the public interest \n\line 245.10because a reduced price is necessary to provide an incentive to correct the blighted \n\line 245.11conditions that make the lands undesirable in the open market, or the reduced price will \n\line 245.12lead to the development of affordable housing; and \n\line 245.13(2) the governmental subdivision or state agency has documented its specific plans \n\line 245.14for correcting the blighted conditions or developing affordable housing, and the specific \n\line 245.15law or laws that empower it to acquire real property in furtherance of the plans. \n\line 245.16If the sale under this paragraph is to a governmental subdivision of the state, the \n\line 245.17commissioner of revenue must convey the property on behalf of the state by quitclaim \n\line 245.18deed. If the sale under this paragraph is to a state agency, {\ul the property is released from } \n\line 245.19{\ul the trust in favor of the taxing districts and }the commissioner {\ul of revenue }must {\strike issue a } \n\line 245.20{\strike conveyance document that releases the property from the trust in favor of the taxing } \n\line 245.21{\strike districts}{\ul convey the property on behalf of the state by quitclaim deed to the agency}. \n\line 245.22(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts \n\line 245.23may be conveyed by the commissioner of revenue in the name of the state to a \n\line 245.24governmental subdivision for an authorized public use, if an application is submitted to the \n\line 245.25commissioner which includes a statement of facts as to the use to be made of the tract and \n\line 245.26the favorable recommendation of the county board. For the purposes of this paragraph, \n\line 245.27"authorized public use" means a use that allows an indefinite segment of the public to \n\line 245.28physically use and enjoy the property in numbers appropriate to its size and use, or is for a \n\line 245.29public service facility. Authorized public uses as defined in this paragraph are limited to: \n\line 245.30(1) a road, or right-of-way for a road; \n\line 245.31(2) a park that is both available to, and accessible by, the public that contains \n\line 245.32improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters; \n\line 245.33(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along \n\line 245.34with a reasonable amount of surrounding land maintained in its natural state; \n\line 246.1(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, \n\line 246.2including transit ways, park-and-ride lots, transit stations, maintenance and garage \n\line 246.3facilities, and other facilities related to a public transit system; \n\line 246.4(5) public beaches or boat launches; \n\line 246.5(6) public parking; \n\line 246.6(7) civic recreation or conference facilities; and \n\line 246.7(8) public service facilities such as fire halls, police stations, lift stations, water \n\line 246.8towers, sanitation facilities, water treatment facilities, and administrative offices. \n\line 246.9No monetary compensation or consideration is required for the conveyance, except as \n\line 246.10provided in subdivision 1g, but the conveyance is subject to the conditions provided in \n\line 246.11law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d. \n\line 246.12(f) The commissioner of revenue shall convey a parcel of nonconservation \n\line 246.13tax-forfeited land to a local governmental subdivision of the state by quitclaim deed \n\line 246.14on behalf of the state upon the favorable recommendation of the county board if the \n\line 246.15governmental subdivision has certified to the board that prior to forfeiture the subdivision \n\line 246.16was entitled to the parcel under a written development agreement or instrument, but \n\line 246.17the conveyance failed to occur prior to forfeiture. No compensation or consideration is \n\line 246.18required for, and no conditions attach to, the conveyance. \n\line 246.19(g) The commissioner of revenue shall convey a parcel of nonconservation \n\line 246.20tax-forfeited land to the association of a common interest community by quitclaim deed \n\line 246.21upon the favorable recommendation of the county board if the association certifies to the \n\line 246.22board that prior to forfeiture the association was entitled to the parcel under a written \n\line 246.23agreement, but the conveyance failed to occur prior to forfeiture. No compensation or \n\line 246.24consideration is required for, and no conditions attach to, the conveyance. \n\line 246.25(h) Conservation tax-forfeited land may be sold to a governmental subdivision of \n\line 246.26the state for less than its market value for either: (1) creation or preservation of wetlands; \n\line 246.27(2) drainage or storage of storm water under a storm water management plan; or (3) \n\line 246.28preservation, or restoration and preservation, of the land in its natural state. The deed must \n\line 246.29contain a restrictive covenant limiting the use of the land to one of these purposes for \n\line 246.3030 years or until the property is reconveyed back to the state in trust. At any time, the \n\line 246.31governmental subdivision may reconvey the property to the state in trust for the taxing \n\line 246.32districts. The deed of reconveyance is subject to approval by the commissioner of revenue. \n\line 246.33No part of a purchase price determined under this paragraph shall be refunded upon a \n\line 246.34reconveyance, but the amount paid for a conveyance under this paragraph may be taken \n\line 246.35into account by the county board when setting the terms of a future sale of the same \n\line 246.36property to the same governmental subdivision under paragraph (b) or (d). If the lands \n\line 247.1are unplatted and located outside of an incorporated municipality and the commissioner \n\line 247.2of natural resources determines there is a mineral use potential, the sale is subject to the \n\line 247.3approval of the commissioner of natural resources. \n\line 247.4(i) A park and recreation board in a city of the first class is a governmental \n\line 247.5subdivision for the purposes of this section. \n\line 247.6(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed \n\line 247.7by the commissioner of revenue in the name of the state to a governmental subdivision for \n\line 247.8a school forest under section \n\line 89.41. An application that includes a statement of facts as \n\line 247.9to the use to be made of the tract and the favorable recommendation of the county board \n\line 247.10and the commissioner of natural resources must be submitted to the commissioner of \n\line 247.11revenue. No monetary compensation or consideration is required for the conveyance, but \n\line 247.12the conveyance is subject to the conditional use and reversion provisions of subdivisions \n\line 247.131c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the \n\line 247.14property back to the state in trust for the taxing districts. The deed of reconveyance is \n\line 247.15subject to approval by the commissioner of revenue. \n\line 247.16{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 247.17 Sec. 34. Minnesota Statutes 2014, section 282.01, subdivision 1d, is amended to read: \n\line 247.18 Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years \n\line 247.19from the date of any conveyance of tax-forfeited land to a governmental subdivision for \n\line 247.20an authorized public use as provided in this section, regardless of when the deed for the \n\line 247.21authorized public use was executed, if the governmental subdivision has failed to put the \n\line 247.22land to that use, or abandons that use, the governing body of the subdivision must: (1) \n\line 247.23with the approval of the county board, purchase the property for an authorized public \n\line 247.24purpose at the present market value as determined by the county board, or (2) authorize \n\line 247.25the proper officers to convey the land, or the part of the land not required for an authorized \n\line 247.26public use, to the state of Minnesota in trust for the taxing districts. If the governing body \n\line 247.27purchases the property under clause (1), the commissioner of revenue shall, upon proper \n\line 247.28application submitted by the county auditor{\ul and upon the reconveyance of the land subject } \n\line 247.29{\ul to the conditional use deed to the state}, convey the property on behalf of the state by \n\line 247.30quitclaim deed to the subdivision free of a use restriction and the possibility of reversion \n\line 247.31or defeasement. If the governing body decides to reconvey the property to the state under \n\line 247.32this clause, the officers shall execute a deed of conveyance immediately. The conveyance \n\line 247.33is subject to the approval of the commissioner and its form must be approved by the \n\line 247.34attorney general. For 15 years from the date of the conveyance, there is no failure to put \n\line 247.35the land to the authorized public use and no abandonment of that use if a formal plan of \n\line 248.1the governmental subdivision, including, but not limited to, a comprehensive plan or land \n\line 248.2use plan, shows an intended future use of the land for the authorized public use. \n\line 248.3(b) Property held by a governmental subdivision of the state under a conditional use \n\line 248.4deed executed under this section by the commissioner of revenue on or after January 1, \n\line 248.52007, may be acquired by that governmental subdivision after 15 years from the date \n\line 248.6of the conveyance if the commissioner determines upon written application from the \n\line 248.7subdivision that the subdivision has in fact put the property to the authorized public use for \n\line 248.8which it was conveyed, and the subdivision has made a finding that it has no current plans \n\line 248.9to change the use of the lands. Prior to conveying the property, the commissioner shall \n\line 248.10inquire whether the county board where the land is located objects to a conveyance of the \n\line 248.11property to the subdivision without conditions and without further act by or obligation \n\line 248.12of the subdivision. If the county does not object within 60 days, and the commissioner \n\line 248.13makes a favorable determination, the commissioner shall issue a quitclaim deed on behalf \n\line 248.14of the state unconditionally conveying the property to the governmental subdivision. For \n\line 248.15purposes of this paragraph, demonstration of an intended future use for the authorized \n\line 248.16public use in a formal plan of the governmental subdivision does not constitute use for \n\line 248.17that authorized public use. \n\line 248.18(c) Property held by a governmental subdivision of the state under a conditional use \n\line 248.19deed executed under this section by the commissioner of revenue before January 1, 2007, \n\line 248.20is released from the use restriction and possibility of reversion on January 1, 2022, if the \n\line 248.21county board records a resolution describing the land and citing this paragraph. The \n\line 248.22county board may authorize the county treasurer to deduct the amount of the recording \n\line 248.23fees from future settlements of property taxes to the subdivision. \n\line 248.24(d) Except for tax-forfeited land conveyed to establish a school forest under section \n\line \n\line 248.2589.41\n\line , property conveyed under a conditional use deed executed under this section by \n\line 248.26the commissioner of revenue, regardless of when the deed for the authorized public use \n\line 248.27was executed, is released from the use restriction and reverter, and any use restriction or \n\line 248.28reverter for which no declaration of reversion has been recorded with the county recorder \n\line 248.29or registrar of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 \n\line 248.30years from the date the deed was acknowledged; or (3) final resolution of an appeal to \n\line 248.31district court under subdivision 1e, if a lis pendens related to the appeal is recorded in the \n\line 248.32office of the county recorder or registrar of titles, as appropriate, prior to January 1, 2015. \n\line 248.33(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a \n\line 248.34school forest under section \n\line 89.41 is subject to a perpetual conditional use deed and reverter. \n\line 248.35The property reverts to the state in trust for the taxing districts by operation of law if the \n\line 248.36commissioner of natural resources determines and reports to the commissioner of revenue \n\line 249.1under section \n\line 89.41, subdivision 3, that the governmental subdivision has failed to use the \n\line 249.2land for school forest purposes for three consecutive years. The commissioner of revenue \n\line 249.3shall record a declaration of reversion for land that has reverted under this paragraph. \n\line 249.4{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 249.5 Sec. 35. Minnesota Statutes 2014, section 477A.013, is amended by adding a \n\line 249.6subdivision to read: \n\line 249.7 {\ul Subd. 14.} {\ul Communication by electronic mail.} {\ul Prior to receiving aid pursuant to } \n\line 249.8{\ul this section, a city must register an official electronic mail address with the commissioner, } \n\line 249.9{\ul which the commissioner may use as an exclusive means to communicate with the city. } \n\line 249.10{\ul EFFECTIVE DATE.}{\ul This section is effective for aids payable in 2017 and thereafter.} \n\line \n\line 249.11 Sec. 36. Minnesota Statutes 2014, section 477A.19, is amended by adding a \n\line 249.12subdivision to read: \n\line 249.13 {\ul Subd. 3a.} {\ul Certification.} {\ul On or before June 1 of each year, the commissioner of } \n\line 249.14{\ul natural resources shall certify to the commissioner of revenue the number of watercraft } \n\line 249.15{\ul launches and the number of watercraft trailer parking spaces in each county.} \n\line 249.16{\ul EFFECTIVE DATE.}{\ul This section is effective for aids payable in 2017 and thereafter.} \n\line \n\line 249.17 Sec. 37. Minnesota Statutes 2014, section 477A.19, is amended by adding a \n\line 249.18subdivision to read: \n\line 249.19 {\ul Subd. 3b.} {\ul Certification.} {\ul On or before June 1 of each year, the commissioner of } \n\line 249.20{\ul natural resources shall certify to the commissioner of revenue the counties that complied } \n\line 249.21{\ul with the requirements of subdivision 3 the prior year and are eligible to receive aid } \n\line 249.22{\ul under this section.} \n\line 249.23{\ul EFFECTIVE DATE.}{\ul This section is effective for aids payable in 2017 and thereafter.} \n\line \n\line 249.24 Sec. 38. Minnesota Statutes 2014, section 559.202, subdivision 2, is amended to read: \n\line 249.25 Subd. 2. Exception. This section does not apply{\ul to sales made under chapter 282 or } \n\line 249.26if the purchaser is represented throughout the transaction by either: \n\line 249.27(1) a person licensed to practice law in this state; or \n\line 249.28(2) a person licensed as a real estate broker or salesperson under chapter 82, \n\line 249.29provided that the representation does not create a dual agency, as that term is defined \n\line 249.30in section \n\line 82.55, subdivision 6. \n\line 250.1{\ul EFFECTIVE DATE.}{\ul This section is effective for sales of tax-forfeited land } \n\line 250.2{\ul occurring after the day following final enactment.} \n\line \n\line 250.3 Sec. 39. Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read: \n\line 250.4 Subd. 2. Payment of supplemental credit. {\ul (a) }The commissioner must pay \n\line 250.5supplemental credit amounts to each qualifying taxpayer by October 15, 2014. \n\line 250.6{\ul (b) If the commissioner cannot locate the qualifying taxpayer by October 15, 2016, } \n\line 250.7{\ul or if a qualifying taxpayer to whom a warrant was issued does not cash that warrant within } \n\line 250.8{\ul two years from the date the warrant was issued, the right to the credit shall lapse and the } \n\line 250.9{\ul warrant shall be deposited in the general fund.} \n\line 250.10{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 250.11 Sec. 40. Laws 2014, chapter 308, article 9, section 94, is amended to read: \n\line 250.12 Sec. 94. REPEALER. \n\line 250.13(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision \n\line 250.1419e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, \n\line 250.15part 8007.0200, are repealed. \n\line 250.16(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, \n\line 250.17subdivision 2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, \n\line 250.1853, 67, 72, and 82; {\strike 272.027, subdivision 2;} 272.031; 273.015, subdivision 1; 273.03, \n\line 250.19subdivision 3; 273.075; 273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; \n\line 250.20279.32; 281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, \n\line 250.21subdivision 4; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision \n\line 250.227; 297A.666; 297A.71, subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, \n\line 250.23subdivision 11; 297H.10, subdivision 2; 469.174, subdivision 10c; 469.175, subdivision \n\line 250.242b; 469.176, subdivision 1i; 469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; \n\line 250.25and 505.173, Minnesota Statutes 2013 Supplement, section 273.1103, Laws 1993, chapter \n\line 250.26375, article 9, section 47, and Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; \n\line 250.27and 8130.7500, subpart 7, are repealed. \n\line 250.28(c) Minnesota Statutes 2012, section 469.1764, is repealed. \n\line 250.29(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision \n\line 250.3038; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; \n\line 250.31469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 \n\line 250.32Supplement, section 469.340, subdivision 4, are repealed. \n\line 250.33(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed. \n\line 251.1{\ul EFFECTIVE DATE.}{\ul This section is effective retroactively from May 20, 2014, } \n\line 251.2{\ul and pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027, } \n\line 251.3{\ul subdivision 2, is revived and reenacted as of that date.} \n\line \n\line 251.4 Sec. 41. {\ul REPEALER. } \n\line 251.5{\ul (a)}{\ul Minnesota Statutes 2014, section 281.22,}{\ul is repealed.} \n\line 251.6{\ul (b)}{\ul Minnesota Rules, part 8100.0700,}{\ul is repealed.} \n\line 251.7{\ul EFFECTIVE DATE.}{\ul Paragraph (a) is effective the day following final enactment. } \n\line 251.8{\ul Paragraph (b) is effective beginning with assessment year 2016.} \n\line \n\line
251.9ARTICLE 15 \n\line \n\line
\n\line
251.10DEPARTMENT POLICY AND TECHNICAL PROVISIONS; MISCELLANEOUS \n\line \n\line
\n\line 251.11 Section 1. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read: \n\line 251.12 Subdivision 1. Annual report required. Every railroad company doing business \n\line 251.13in Minnesota shall annually file with the commissioner on or before March 31 a report \n\line 251.14under oath setting forth the information prescribed by the commissioner to enable the \n\line 251.15commissioner to make the valuation and equalization required by sections \n\line 270.80 to \n\line \n\line 251.16270.87\n\line .{\ul The commissioner shall prescribe the content, format, and manner of the report } \n\line 251.17{\ul pursuant to section 270C.30, except that a "law administered by the commissioner" } \n\line 251.18{\ul includes the property tax laws. If a report is made by electronic means, the taxpayer's } \n\line 251.19{\ul signature is defined pursuant to section 270C.304, except that a "law administered by the } \n\line 251.20{\ul commissioner" includes the property tax laws.} \n\line 251.21{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 251.22 Sec. 2. Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read: \n\line 251.23 Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed \n\line 251.24and certain amount of money, which equals or exceeds $25 and which is due and payable \n\line 251.25to a claimant agency. The term includes criminal fines imposed under section \n\line 609.10 or \n\line \n\line 251.26609.125\n\line , fines imposed for petty misdemeanors as defined in section \n\line 609.02, subdivision \n\line 251.274a\n\line , and restitution. A debt may arise under a contractual or statutory obligation, a court \n\line 251.28order, or other legal obligation, but need not have been reduced to judgment. \n\line 251.29 A debt includes any legal obligation of a current recipient of assistance which is \n\line 251.30based on overpayment of an assistance grant where that payment is based on a client \n\line 251.31waiver or an administrative or judicial finding of an intentional program violation; \n\line 251.32or where the debt is owed to a program wherein the debtor is not a client at the time \n\line 252.1notification is provided to initiate recovery under this chapter and the debtor is not a \n\line 252.2current recipient of food support, transitional child care, or transitional medical assistance. \n\line 252.3 (b) A debt does not include any legal obligation to pay a claimant agency for medical \n\line 252.4care, including hospitalization if the income of the debtor at the time when the medical \n\line 252.5care was rendered does not exceed the following amount: \n\line 252.6 (1) for an unmarried debtor, an income of {\strike $8,800}{\ul $12,560} or less; \n\line 252.7 (2) for a debtor with one dependent, an income of {\strike $11,270}{\ul $16,080} or less; \n\line 252.8 (3) for a debtor with two dependents, an income of {\strike $13,330}{\ul $19,020} or less; \n\line 252.9 (4) for a debtor with three dependents, an income of {\strike $15,120}{\ul $21,580} or less; \n\line 252.10 (5) for a debtor with four dependents, an income of {\strike $15,950}{\ul $22,760} or less; and \n\line 252.11 (6) for a debtor with five or more dependents, an income of {\strike $16,630}{\ul $23,730} or less. \n\line 252.12{\ul For purposes of this paragraph, "debtor" means the individual whose income, } \n\line 252.13{\ul together with the income of the individual's spouse, other than a separated spouse, brings } \n\line 252.14{\ul the individual within the income provisions of this paragraph. For purposes of this } \n\line 252.15{\ul paragraph, a spouse, other than a separated spouse, shall be considered a dependent.} \n\line 252.16 (c) The commissioner shall adjust the income amounts in paragraph (b) by the \n\line 252.17percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue \n\line 252.18Code, except that in section 1(f)(3)(B) the word "{\strike 1999}{\ul 2014}" shall be substituted for \n\line 252.19the word "1992." For {\strike 2001}{\ul 2016}, the commissioner shall then determine the percent \n\line 252.20change from the 12 months ending on August 31, {\strike 1999}{\ul 2014}, to the 12 months ending on \n\line 252.21August 31, {\strike 2000}{\ul 2015}, and in each subsequent year, from the 12 months ending on August \n\line 252.2231, {\strike 1999}{\ul 2014}, to the 12 months ending on August 31 of the year preceding the taxable \n\line 252.23year. The determination of the commissioner pursuant to this subdivision shall not be \n\line 252.24considered a "rule" and shall not be subject to the Administrative Procedure Act contained \n\line 252.25in chapter 14. The income amount as adjusted must be rounded to the nearest $10 amount. \n\line 252.26If the amount ends in $5, the amount is rounded up to the nearest $10 amount. \n\line 252.27 (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of \n\line 252.28the dollar amount of the premium authorized under section \n\line 256L.15, subdivision 1a. \n\line 252.29{\ul EFFECTIVE DATE.}{\ul The section is effective retroactively for debts incurred after } \n\line 252.30{\ul December 31, 2014.} \n\line \n\line 252.31 Sec. 3. Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read: \n\line 252.32 Subdivision 1. Disclosure to commissioner of human services. (a) On the request \n\line 252.33of the commissioner of human services, the commissioner shall disclose return information \n\line 252.34regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to \n\line 252.35the extent provided in paragraph (b) and for the purposes set forth in paragraph (c). \n\line 253.1 (b) Data that may be disclosed are limited to data relating to the identity, \n\line 253.2whereabouts, employment, income, and property of a person owing or alleged to be owing \n\line 253.3an obligation of child support. \n\line 253.4 (c) The commissioner of human services may request data only for the purposes of \n\line 253.5carrying out the child support enforcement program and to assist in the location of parents \n\line 253.6who have, or appear to have, deserted their children. Data received may be used only \n\line 253.7as set forth in section \n\line 256.978. \n\line 253.8 (d) The commissioner shall provide the records and information necessary to \n\line 253.9administer the supplemental housing allowance to the commissioner of human services. \n\line 253.10 (e) At the request of the commissioner of human services, the commissioner of \n\line 253.11revenue shall electronically match the Social Security numbers and names of participants \n\line 253.12in the telephone assistance plan operated under sections \n\line 237.69 to \n\line 237.71, with those of \n\line 253.13property tax refund filers, and determine whether each participant's household income is \n\line 253.14within the eligibility standards for the telephone assistance plan. \n\line 253.15 (f) The commissioner may provide records and information collected under sections \n\line \n\line 253.16295.50\n\line to \n\line 295.59 to the commissioner of human services for purposes of the Medicaid \n\line 253.17Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law \n\line 253.18102-234. Upon the written agreement by the United States Department of Health and \n\line 253.19Human Services to maintain the confidentiality of the data, the commissioner may provide \n\line 253.20records and information collected under sections \n\line 295.50 to \n\line 295.59 to the Centers for \n\line 253.21Medicare and Medicaid Services section of the United States Department of Health and \n\line 253.22Human Services for purposes of meeting federal reporting requirements. \n\line 253.23 (g) The commissioner may provide records and information to the commissioner of \n\line 253.24human services as necessary to administer the early refund of refundable tax credits. \n\line 253.25 (h) The commissioner may disclose information to the commissioner of human \n\line 253.26services {\ul as }necessary {\strike to verify income}{\ul for income verification} for eligibility and premium \n\line 253.27payment under the MinnesotaCare program, under section \n\line 256L.05, subdivision 2{\ul , as well } \n\line 253.28{\ul as the medical assistance program under section 256B}. \n\line 253.29 (i) The commissioner may disclose information to the commissioner of human \n\line 253.30services necessary to verify whether applicants or recipients for the Minnesota family \n\line 253.31investment program, general assistance, food support, Minnesota supplemental aid \n\line 253.32program, and child care assistance have claimed refundable tax credits under chapter 290 \n\line 253.33and the property tax refund under chapter 290A, and the amounts of the credits. \n\line 253.34 (j) The commissioner may disclose information to the commissioner of human \n\line 253.35services necessary to verify income for purposes of calculating parental contribution \n\line 253.36amounts under section \n\line 252.27, subdivision 2a. \n\line 254.1{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 254.2 Sec. 4. Minnesota Statutes 2014, section 270C.30, is amended to read: \n\line 254.3270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING. \n\line 254.4{\ul Except as otherwise provided by law,} the commissioner shall prescribe the content \n\line 254.5{\strike and}{\ul ,} format{\ul , and manner} of all returns and other forms required to be filed under a law \n\line 254.6administered by the commissioner, and may furnish them subject to charge on application. \n\line 254.7{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 254.8 Sec. 5. Minnesota Statutes 2014, section 270C.33, subdivision 5, is amended to read: \n\line 254.9 Subd. 5. Prohibition against collection during appeal period of an order. No \n\line 254.10collection action can be taken on an order of assessment, or any other order imposing a \n\line 254.11liability, including the filing of liens under section \n\line 270C.63, and no late payment penalties \n\line 254.12may be imposed when a return has been filed for the tax type and period upon which the \n\line 254.13order is based, during the appeal period of an order. The appeal period of an order ends: \n\line 254.14(1) 60 days after the {\strike order has been mailed to the taxpayer}{\ul notice date designated} by the \n\line 254.15commissioner{\ul on the order}; (2) if an administrative appeal is filed under section \n\line 270C.35, \n\line 254.1660 days after{\ul the notice date designated by the commissioner on the written} determination \n\line 254.17of the administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when \n\line 254.18the decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the \n\line 254.19appeal is based upon a constitutional challenge to the tax, 60 days after final determination \n\line 254.20of the appeal. This subdivision does not apply to a jeopardy assessment under section \n\line \n\line 254.21270C.36\n\line , or a jeopardy collection under section \n\line 270C.36. \n\line 254.22{\ul EFFECTIVE DATE.}{\ul This section is effective for orders dated after December } \n\line 254.23{\ul 31, 2016.} \n\line \n\line 254.24 Sec. 6. Minnesota Statutes 2014, section 270C.33, subdivision 8, is amended to read: \n\line 254.25 Subd. 8. Sufficiency of notice. An assessment of tax made by the commissioner, \n\line 254.26sent postage prepaid by United States mail to the taxpayer at the taxpayer's last known \n\line 254.27address, or sent by electronic mail to the taxpayer's last known electronic mailing address \n\line 254.28as provided for in section \n\line 325L.08, is sufficient even if the taxpayer is deceased or is \n\line 254.29under a legal disability, or, in the case of a corporation, has terminated its existence, unless \n\line 254.30the commissioner has been provided with a new address by a party authorized to receive \n\line 254.31notices of assessment.{\ul Notice of an assessment is sufficient if it is sent on or before the } \n\line 254.32{\ul notice date designated by the commissioner on the assessment.} \n\line 255.1{\ul EFFECTIVE DATE.}{\ul This section is effective for assessments dated after December } \n\line 255.2{\ul 31, 2016.} \n\line \n\line 255.3 Sec. 7. Minnesota Statutes 2014, section 270C.34, subdivision 2, is amended to read: \n\line 255.4 Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or \n\line 255.5section \n\line 289A.60, subdivision 4, or a request for abatement of interest or additional tax \n\line 255.6charge, must be filed with the commissioner within 60 days of the {\ul notice }date {\ul of }the {\strike notice } \n\line 255.7{\strike was mailed to the taxpayer's last known address, stating that a} penalty {\strike has been imposed } \n\line 255.8{\ul or additional tax charge. For purposes of this section, the term "notice date" means the } \n\line 255.9{\ul notice date designated by the commissioner on the order or other notice that a penalty or } \n\line 255.10{\ul additional tax charge has been imposed}. \n\line 255.11(b) If the commissioner issues an order denying a request for abatement of penalty, \n\line 255.12interest, or additional tax charge, the taxpayer may file an administrative appeal as \n\line 255.13provided in section \n\line 270C.35 or appeal to Tax Court as provided in section \n\line 271.06. \n\line 255.14(c) If the commissioner does not issue an order on the abatement request within \n\line 255.1560 days from the date the request is received, the taxpayer may appeal to Tax Court as \n\line 255.16provided in section \n\line 271.06. \n\line 255.17{\ul EFFECTIVE DATE.}{\ul This section is effective for orders and notices dated after } \n\line 255.18{\ul December 31, 2016.} \n\line \n\line 255.19 Sec. 8. Minnesota Statutes 2014, section 270C.347, subdivision 1, is amended to read: \n\line 255.20 Subdivision 1. Checks and warrants, authority to reissue. Notwithstanding any \n\line 255.21other provision of law, the commissioner may, based on a showing of reasonable cause, \n\line 255.22reissue an uncashed rebate{\ul , supplemental agricultural credit,} or property tax refund warrant \n\line 255.23or check that has lapsed under any provision of law relating to rebates or under section \n\line \n\line 255.24290A.18, subdivision 2\n\line . The authority to reissue warrants or checks under this subdivision \n\line 255.25is limited to five years after the date of issuance of the original warrant or check. \n\line 255.26{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 255.27 Sec. 9. Minnesota Statutes 2014, section 270C.35, subdivision 3, is amended to read: \n\line 255.28 Subd. 3. Notice date. For purposes of this section, the term "notice date" means the \n\line 255.29date {\strike of}{\ul designated by the commissioner on} the order adjusting the tax or order denying a \n\line 255.30request for abatement, or, in the case of a denied refund, the{\ul notice} date {\strike of}{\ul designated by } \n\line 255.31{\ul the commissioner on} the notice of denial. \n\line 256.1{\ul EFFECTIVE DATE.}{\ul This section is effective for orders and notices dated after } \n\line 256.2{\ul December 31, 2016.} \n\line \n\line 256.3 Sec. 10. Minnesota Statutes 2014, section 270C.35, is amended by adding a \n\line 256.4subdivision to read: \n\line 256.5 {\ul Subd. 11.} {\ul Dismissal of administrative appeal.} {\ul If a taxpayer files an administrative } \n\line 256.6{\ul appeal for an order of the commissioner and also files an appeal to the Tax Court for } \n\line 256.7{\ul that same order of the commissioner, the administrative appeal is dismissed and the } \n\line 256.8{\ul commissioner is no longer required to make a determination of appeal under subdivision 6.} \n\line 256.9{\ul EFFECTIVE DATE.}{\ul This section is effective for all administrative appeals filed } \n\line 256.10{\ul after June 30, 2016.} \n\line \n\line 256.11 Sec. 11. Minnesota Statutes 2014, section 270C.38, subdivision 1, is amended to read: \n\line 256.12 Subdivision 1. Sufficient notice. (a) If no method of notification of a written \n\line 256.13determination or action of the commissioner is otherwise specifically provided for by \n\line 256.14law, notice of the determination or action sent postage prepaid by United States mail to \n\line 256.15the taxpayer or other person affected by the determination or action at the taxpayer's \n\line 256.16or person's last known address, is sufficient. If the taxpayer or person being notified is \n\line 256.17deceased or is under a legal disability, or, in the case of a corporation being notified that \n\line 256.18has terminated its existence, notice to the last known address of the taxpayer, person, or \n\line 256.19corporation is sufficient, unless the department has been provided with a new address by a \n\line 256.20party authorized to receive notices from the commissioner. \n\line 256.21(b) If a taxpayer or other person agrees to accept notification by electronic means, \n\line 256.22notice of a determination or action of the commissioner sent by electronic mail to the \n\line 256.23taxpayer's or person's last known electronic mailing address as provided for in section \n\line \n\line 256.24325L.08\n\line is sufficient. \n\line 256.25{\ul (c) Notice of a determination or action of the commissioner is sufficient if it is sent } \n\line 256.26{\ul on or before the notice date designated by the commissioner on the notice.} \n\line 256.27{\ul EFFECTIVE DATE.}{\ul This section is effective for notices dated after December } \n\line 256.28{\ul 31, 2016.} \n\line \n\line 256.29 Sec. 12. Minnesota Statutes 2014, section 270C.445, is amended by adding a \n\line 256.30subdivision to read: \n\line 256.31 {\ul Subd. 9.} {\ul Enforcement; limitations.} {\ul (a) Notwithstanding any other law, the } \n\line 256.32{\ul imposition of a penalty or any other action against a tax return preparer authorized by } \n\line 257.1{\ul subdivision 6 with respect to a return may be taken by the commissioner within the period } \n\line 257.2{\ul provided by section 289A.38 to assess tax on that return.} \n\line 257.3{\ul (b) Imposition of a penalty or other action against a tax return preparer authorized } \n\line 257.4{\ul by subdivision 6 other than with respect to a return must be taken by the commissioner } \n\line 257.5{\ul within five years of the violation of statute.} \n\line 257.6{\ul EFFECTIVE DATE.}{\ul This section is effective for tax preparation services provided } \n\line 257.7{\ul after the day following final enactment.} \n\line \n\line 257.8 Sec. 13. Minnesota Statutes 2014, section 270C.446, subdivision 5, is amended to read: \n\line 257.9 Subd. 5. Removal from list. The commissioner shall remove the name of a tax \n\line 257.10preparer from the list of tax preparers published under this section: \n\line 257.11(1) when the commissioner determines that the name was included on the list in error; \n\line 257.12(2) within {\strike 90 days}{\ul three years} after the preparer has demonstrated to the commissioner \n\line 257.13that the preparer fully paid all fines{\ul or penalties} imposed, served any suspension, satisfied \n\line 257.14any sentence imposed,{\ul successfully completed any probationary period imposed,} and \n\line 257.15successfully completed any remedial actions required by the commissioner, the State \n\line 257.16Board of Accountancy, or the Lawyers Board of Professional Responsibility; or \n\line 257.17(3) when the commissioner has been notified that the tax preparer is deceased. \n\line 257.18{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 257.19 Sec. 14. Minnesota Statutes 2014, section 270C.72, subdivision 4, is amended to read: \n\line 257.20 Subd. 4. Licensing authority; duties. All licensing authorities must require \n\line 257.21the applicant to provide the applicant's Social Security number {\ul or individual taxpayer } \n\line 257.22{\ul identification number }and Minnesota business identification number{\ul , as applicable,} on \n\line 257.23all license applications. Upon request of the commissioner, the licensing authority \n\line 257.24must provide the commissioner with a list of all applicants, including the name, \n\line 257.25address, business name and address, {\ul and }Social Security number{\strike ,}{\ul or individual taxpayer } \n\line 257.26{\ul identification number} and business identification number{\ul , as applicable,} of each applicant. \n\line 257.27The commissioner may request from a licensing authority a list of the applicants no more \n\line 257.28than once each calendar year. \n\line 257.29{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 257.30 Sec. 15. Minnesota Statutes 2014, section 271.06, subdivision 2, is amended to read: \n\line 257.31 Subd. 2. Time; notice; intervention. Except as otherwise provided by law, within \n\line 257.3260 days after {\ul the }notice {\strike of the making and filing}{\ul date} of an order of the commissioner of \n\line 258.1revenue, the appellant, or the appellant's attorney, shall serve a notice of appeal upon \n\line 258.2the commissioner and file the original, with proof of such service, with the Tax Court \n\line 258.3administrator or with the court administrator of district court acting as court administrator \n\line 258.4of the Tax Court; provided, that the Tax Court, for cause shown, may by written order \n\line 258.5extend the time for appealing for an additional period not exceeding 30 days.{\ul For purposes } \n\line 258.6{\ul of this section, the term "notice date" means the notice date designated by the commissioner } \n\line 258.7{\ul on the order.} The notice of appeal shall be in the form prescribed by the Tax Court. Within \n\line 258.8five days after receipt, the commissioner shall transmit a copy of the notice of appeal to \n\line 258.9the attorney general. The attorney general shall represent the commissioner, if requested, \n\line 258.10upon all such appeals except in cases where the attorney general has appealed in behalf of \n\line 258.11the state, or in other cases where the attorney general deems it against the interests of the \n\line 258.12state to represent the commissioner, in which event the attorney general may intervene or \n\line 258.13be substituted as an appellant in behalf of the state at any stage of the proceedings. \n\line 258.14Upon a final determination of any other matter over which the court is granted \n\line 258.15jurisdiction under section \n\line 271.01, subdivision 5, the taxpayer or the taxpayer's attorney \n\line 258.16shall file a petition or notice of appeal as provided by law with the court administrator of \n\line 258.17district court, acting in the capacity of court administrator of the Tax Court, with proof of \n\line 258.18service of the petition or notice of appeal as required by law and within the time required \n\line 258.19by law. As used in this subdivision, "final determination" includes a notice of assessment \n\line 258.20and equalization for the year in question received from the local assessor, an order of the \n\line 258.21local board of equalization, or an order of a county board of equalization. \n\line 258.22The Tax Court shall prescribe a filing system so that the notice of appeal or petition \n\line 258.23filed with the district court administrator acting as court administrator of the Tax Court is \n\line 258.24forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning \n\line 258.25property valuation for which the assessor, a local board of equalization, a county board of \n\line 258.26equalization or the commissioner of revenue has issued an order, the officer issuing the \n\line 258.27order shall be notified of the filing of the appeal. The notice of appeal or petition shall be \n\line 258.28in the form prescribed by the Tax Court. \n\line 258.29{\ul EFFECTIVE DATE.}{\ul This section is effective for orders dated after December } \n\line 258.30{\ul 31, 2016.} \n\line \n\line 258.31 Sec. 16. Minnesota Statutes 2014, section 271.06, subdivision 7, is amended to read: \n\line 258.32 Subd. 7. Rules. Except as provided in section \n\line 278.05, subdivision 6, the Rules \n\line 258.33of Evidence and Civil Procedure for the district court of Minnesota shall govern the \n\line 258.34procedures in the Tax Court, where practicable.{\ul The Rules of Civil Procedure do not apply } \n\line 258.35{\ul to alter the 60-day period of time to file a notice of appeal provided in subdivision 2.} The \n\line 259.1Tax Court may adopt rules under chapter 14. The rules in effect on January 1, 1989, \n\line 259.2apply until superseded. \n\line 259.3{\ul EFFECTIVE DATE.}{\ul This section is effective for orders dated after December } \n\line 259.4{\ul 31, 2016.} \n\line \n\line 259.5 Sec. 17. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read: \n\line 259.6 Subd. 10. Personal property used for pollution control. Personal property used \n\line 259.7primarily for the abatement and control of air, water, or land pollution is exempt to the \n\line 259.8extent that it is so used, and real property is exempt if it is used primarily for abatement \n\line 259.9and control of air, water, or land pollution as part of an agricultural operation, as a part \n\line 259.10of a centralized treatment and recovery facility operating under a permit issued by the \n\line 259.11Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota \n\line 259.12Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater \n\line 259.13treatment facility and for the treatment, recovery, and stabilization of metals, oils, \n\line 259.14chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as \n\line 259.15part of an electric generation system. For purposes of this subdivision, personal property \n\line 259.16includes ponderous machinery and equipment used in a business or production activity \n\line 259.17that at common law is considered real property. \n\line 259.18Any taxpayer requesting exemption of all or a portion of any real property or any \n\line 259.19equipment or device, or part thereof, operated primarily for the control or abatement of air, \n\line 259.20water, or land pollution shall file an application with the commissioner of revenue. The \n\line 259.21commissioner shall develop an electronic means to notify interested parties when electric \n\line 259.22power generation facilities have filed an application.{\ul The commissioner shall prescribe } \n\line 259.23{\ul the content, format, and manner of the application pursuant to section 270C.30, except } \n\line 259.24{\ul that a "law administered by the commissioner" includes the property tax laws, and if an } \n\line 259.25{\ul application is made by electronic means, the taxpayer's signature is defined pursuant to } \n\line 259.26{\ul section 270C.304, except that a "law administered by the commissioner" includes the } \n\line 259.27{\ul property tax laws.} The Minnesota Pollution Control Agency shall upon request of the \n\line 259.28commissioner furnish information and advice to the commissioner. \n\line 259.29The information and advice furnished by the Minnesota Pollution Control \n\line 259.30Agency must include statements as to whether the equipment, device, or real property \n\line 259.31meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution \n\line 259.32Control Agency, and whether the equipment, device, or real property is installed or \n\line 259.33operated in accordance with it. On determining that property qualifies for exemption, \n\line 259.34the commissioner shall issue an order exempting the property from taxation. The \n\line 259.35commissioner shall develop an electronic means to notify interested parties when \n\line 260.1the commissioner has issued an order exempting property from taxation under this \n\line 260.2subdivision. The equipment, device, or real property shall continue to be exempt from \n\line 260.3taxation as long as the order issued by the commissioner remains in effect. \n\line 260.4{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 260.5 Sec. 18. Minnesota Statutes 2014, section 272.0211, subdivision 1, is amended to read: \n\line 260.6 Subdivision 1. Efficiency determination and certification. An owner or operator \n\line 260.7of a new or existing electric power generation facility, excluding wind energy conversion \n\line 260.8systems, may apply to the commissioner of revenue for a market value exclusion on the \n\line 260.9property as provided for in this section. This exclusion shall apply only to the market \n\line 260.10value of the equipment of the facility, and shall not apply to the structures and the land \n\line 260.11upon which the facility is located. The commissioner of revenue shall prescribe the {\strike forms } \n\line 260.12{\ul content, format, manner,} and procedures for this application{\ul pursuant to section 270C.30, } \n\line 260.13{\ul except that a "law administered by the commissioner" includes the property tax laws. If } \n\line 260.14{\ul an application is made by electronic means, the taxpayer's signature is defined pursuant } \n\line 260.15{\ul to section 270C.304, except that a "law administered by the commissioner" includes the } \n\line 260.16{\ul property tax laws}. Upon receiving the application, the commissioner of revenue shall: (1) \n\line 260.17request the commissioner of commerce to make a determination of the efficiency of the \n\line 260.18applicant's electric power generation facility; and (2) shall develop an electronic means to \n\line 260.19notify interested parties when electric power generation facilities have filed an application. \n\line 260.20The commissioner of commerce shall calculate efficiency as the ratio of useful energy \n\line 260.21outputs to energy inputs, expressed as a percentage, based on the performance of the \n\line 260.22facility's equipment during normal full load operation. The commissioner must include in \n\line 260.23this formula the energy used in any on-site preparation of materials necessary to convert \n\line 260.24the materials into the fuel used to generate electricity, such as a process to gasify petroleum \n\line 260.25coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in \n\line 260.26the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible \n\line 260.27project under section \n\line 216B.2424; for these instances, the commissioner shall adjust the \n\line 260.28heating value to allow for energy consumed for evaporation of the moisture in the wood. \n\line 260.29The applicant shall provide the commissioner of commerce with whatever information the \n\line 260.30commissioner deems necessary to make the determination. Within 30 days of the receipt \n\line 260.31of the necessary information, the commissioner of commerce shall certify the findings of \n\line 260.32the efficiency determination to the commissioner of revenue and to the applicant. The \n\line 260.33commissioner of commerce shall determine the efficiency of the facility and certify the \n\line 260.34findings of that determination to the commissioner of revenue every two years thereafter \n\line 260.35from the date of the original certification. \n\line 261.1{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 261.2 Sec. 19. Minnesota Statutes 2014, section 272.025, subdivision 1, is amended to read: \n\line 261.3 Subdivision 1. Statement of exemption. (a) Except in the case of property owned \n\line 261.4by the state of Minnesota or any political subdivision thereof, and property exempt from \n\line 261.5taxation under section \n\line 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at \n\line 261.6the times provided in subdivision 3, a taxpayer claiming an exemption from taxation \n\line 261.7on property described in section \n\line 272.02, subdivisions 2 to 33, must file a statement of \n\line 261.8exemption with the assessor of the assessment district in which the property is located. \n\line 261.9(b) A taxpayer claiming an exemption from taxation on property described in section \n\line \n\line 261.10272.02, subdivision 10\n\line , must file a statement of exemption with the commissioner of \n\line 261.11revenue, on or before February 15 of each year for which the taxpayer claims an exemption. \n\line 261.12(c) In case of sickness, absence or other disability or for good cause, the assessor \n\line 261.13or the commissioner may extend the time for filing the statement of exemption for a \n\line 261.14period not to exceed 60 days. \n\line 261.15(d) The commissioner of revenue shall prescribe the {\strike form and contents}{\ul content, } \n\line 261.16{\ul format, and manner} of the statement of exemption{\ul pursuant to section 270C.30, except } \n\line 261.17{\ul that a "law administered by the commissioner" includes the property tax laws}. \n\line 261.18{\ul (e) If a statement is made by electronic means, the taxpayer's signature is defined } \n\line 261.19{\ul pursuant to section 270C.304, except that a "law administered by the commissioner" } \n\line 261.20{\ul includes the property tax laws.} \n\line 261.21{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 261.22 Sec. 20. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read: \n\line 261.23 Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax \n\line 261.24under subdivision 3 shall file a report with the commissioner of revenue annually on or \n\line 261.25before {\strike February 1}{\ul January 15} detailing the amount of electricity in kilowatt-hours that \n\line 261.26was produced by the wind energy conversion system for the previous calendar year. The \n\line 261.27commissioner shall prescribe the {\strike form}{\ul content, format, and manner} of the report{\ul pursuant } \n\line 261.28{\ul to section 270C.30, except that a "law administered by the commissioner" includes the } \n\line 261.29{\ul property tax laws}. The report must contain the information required by the commissioner \n\line 261.30to determine the tax due to each county under this section for the current year. If an owner \n\line 261.31of a wind energy conversion system subject to taxation under this section fails to file the \n\line 261.32report by the due date, the commissioner of revenue shall determine the tax based upon \n\line 261.33the nameplate capacity of the system multiplied by a capacity factor of 60 percent. \n\line 262.1{\ul (b) If a report is made by electronic means, the taxpayer's signature is defined } \n\line 262.2{\ul pursuant to section 270C.304, except that a "law administered by the commissioner" } \n\line 262.3{\ul includes the property tax laws.} \n\line 262.4{\strike (b)}{\ul (c)} On or before February 28, the commissioner of revenue shall notify the owner \n\line 262.5of the wind energy conversion systems of the tax due to each county for the current year \n\line 262.6and shall certify to the county auditor of each county in which the systems are located the \n\line 262.7tax due from each owner for the current year. \n\line 262.8{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment, } \n\line 262.9{\ul except that the amendment in paragraph (a) moving the date to file the report is effective } \n\line 262.10{\ul for reports filed in 2017 and thereafter.} \n\line \n\line 262.11 Sec. 21. Minnesota Statutes 2014, section 272.0295, subdivision 4, is amended to read: \n\line 262.12 Subd. 4. Reports. An owner of a solar energy generating system subject to tax \n\line 262.13under this section shall file a report with the commissioner of revenue annually on or \n\line 262.14before January 15 detailing the amount of electricity in megawatt-hours that was produced \n\line 262.15by the system in the previous calendar year. The commissioner shall prescribe the {\strike form } \n\line 262.16{\ul content, format, and manner} of the report{\ul pursuant to section 270C.30}. The report must \n\line 262.17contain the information required by the commissioner to determine the tax due to each \n\line 262.18county under this section for the current year. If an owner of a solar energy generating \n\line 262.19system subject to taxation under this section fails to file the report by the due date, the \n\line 262.20commissioner of revenue shall determine the tax based upon the nameplate capacity of \n\line 262.21the system multiplied by a capacity factor of 30 percent. \n\line 262.22{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 262.23 Sec. 22. Minnesota Statutes 2014, section 272.115, subdivision 2, is amended to read: \n\line 262.24 Subd. 2. Form; information required. The certificate of value shall require \n\line 262.25such facts and information as may be determined by the commissioner to be reasonably \n\line 262.26necessary in the administration of the state education aid formulas. The {\strike form } \n\line 262.27{\ul commissioner shall prescribe the content, format, and manner} of the certificate of value \n\line 262.28{\strike shall be prescribed by the Department of Revenue which shall provide an adequate } \n\line 262.29{\strike supply of forms to each county auditor}{\ul pursuant to section 270C.30, except that a "law } \n\line 262.30{\ul administered by the commissioner" includes the property tax laws}. \n\line 262.31{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 262.32 Sec. 23. Minnesota Statutes 2014, section 273.124, subdivision 13, is amended to read: \n\line 263.1 Subd. 13. Homestead application. (a) A person who meets the homestead \n\line 263.2requirements under subdivision 1 must file a homestead application with the county \n\line 263.3assessor to initially obtain homestead classification. \n\line 263.4 (b) {\strike The format and contents of a uniform homestead application shall be prescribed } \n\line 263.5{\strike by the commissioner of revenue.} {\ul The commissioner shall prescribe the content, format, } \n\line 263.6{\ul and manner of the homestead application required to be filed under this chapter pursuant } \n\line 263.7{\ul to section 270C.30. }The application must clearly inform the taxpayer that this application \n\line 263.8must be signed by all owners who occupy the property or by the qualifying relative and \n\line 263.9returned to the county assessor in order for the property to receive homestead treatment. \n\line 263.10 (c) Every property owner applying for homestead classification must furnish to the \n\line 263.11county assessor the Social Security number of each occupant who is listed as an owner \n\line 263.12of the property on the deed of record, the name and address of each owner who does not \n\line 263.13occupy the property, and the name and Social Security number of each owner's spouse who \n\line 263.14occupies the property. The application must be signed by each owner who occupies the \n\line 263.15property and by each owner's spouse who occupies the property, or, in the case of property \n\line 263.16that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative. \n\line 263.17 If a property owner occupies a homestead, the property owner's spouse may not \n\line 263.18claim another property as a homestead unless the property owner and the property owner's \n\line 263.19spouse file with the assessor an affidavit or other proof required by the assessor stating that \n\line 263.20the property qualifies as a homestead under subdivision 1, paragraph (e). \n\line 263.21 Owners or spouses occupying residences owned by their spouses and previously \n\line 263.22occupied with the other spouse, either of whom fail to include the other spouse's name \n\line 263.23and Social Security number on the homestead application or provide the affidavits or \n\line 263.24other proof requested, will be deemed to have elected to receive only partial homestead \n\line 263.25treatment of their residence. The remainder of the residence will be classified as \n\line 263.26nonhomestead residential. When an owner or spouse's name and Social Security number \n\line 263.27appear on homestead applications for two separate residences and only one application is \n\line 263.28signed, the owner or spouse will be deemed to have elected to homestead the residence for \n\line 263.29which the application was signed. \n\line 263.30 (d) If residential real estate is occupied and used for purposes of a homestead by a \n\line 263.31relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in \n\line 263.32order for the property to receive homestead status, a homestead application must be filed \n\line 263.33with the assessor. The Social Security number of each relative and spouse of a relative \n\line 263.34occupying the property shall be required on the homestead application filed under this \n\line 263.35subdivision. If a different relative of the owner subsequently occupies the property, the \n\line 263.36owner of the property must notify the assessor within 30 days of the change in occupancy. \n\line 264.1The Social Security number of a relative or relative's spouse occupying the property \n\line 264.2is private data on individuals as defined by section \n\line 13.02, subdivision 12, but may be \n\line 264.3disclosed to the commissioner of revenue, or, for the purposes of proceeding under the \n\line 264.4Revenue Recapture Act to recover personal property taxes owing, to the county treasurer. \n\line 264.5 (e) The homestead application shall also notify the property owners that if the \n\line 264.6property is granted homestead status for any assessment year, that same property shall \n\line 264.7remain classified as homestead until the property is sold or transferred to another person, \n\line 264.8or the owners, the spouse of the owner, or the relatives no longer use the property as their \n\line 264.9homestead. Upon the sale or transfer of the homestead property, a certificate of value must \n\line 264.10be timely filed with the county auditor as provided under section \n\line 272.115. Failure to \n\line 264.11notify the assessor within 30 days that the property has been sold, transferred, or that the \n\line 264.12owner, the spouse of the owner, or the relative is no longer occupying the property as a \n\line 264.13homestead, shall result in the penalty provided under this subdivision and the property \n\line 264.14will lose its current homestead status. \n\line 264.15 (f) If a homestead application has not been filed with the county by December 15, \n\line 264.16the assessor shall classify the property as nonhomestead for the current assessment year \n\line 264.17for taxes payable in the following year, provided that the owner may be entitled to receive \n\line 264.18the homestead classification by proper application under section \n\line 375.192. \n\line 264.19{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 264.20 Sec. 24. Minnesota Statutes 2014, section 273.371, is amended to read: \n\line 264.21273.371 REPORTS OF UTILITY COMPANIES. \n\line 264.22 Subdivision 1. Report required. Every electric light, power, gas, water, express, \n\line 264.23stage, and transportation {\strike company} and pipeline{\ul company} doing business in Minnesota \n\line 264.24shall annually file with the commissioner on or before March 31 a report under oath \n\line 264.25setting forth the information prescribed by the commissioner to enable the commissioner \n\line 264.26to make valuations, recommended valuations, and equalization required under sections \n\line \n\line 264.27273.33\n\line , \n\line 273.35, \n\line 273.36, \n\line 273.37, and \n\line 273.3711.{\ul The commissioner shall prescribe the } \n\line 264.28{\ul content, format, and manner of the report pursuant to section 270C.30, except that } \n\line 264.29{\ul a "law administered by the commissioner" includes the property tax laws.} If all the \n\line 264.30required information is not available on March 31, the company or pipeline shall file the \n\line 264.31information that is available on or before March 31, and the balance of the information \n\line 264.32as soon as it becomes available.{\ul If a report is made by electronic means, the taxpayer's } \n\line 264.33{\ul signature is defined pursuant to section 270C.304, except that a "law administered by the } \n\line 264.34{\ul commissioner" includes the property tax laws.} \n\line 265.1 Subd. 2. Extension. The commissioner for good cause may extend the time for \n\line 265.2filing the report required by subdivision 1. The extension {\strike may}{\ul must} not exceed 15 days. \n\line 265.3 {\ul Subd. 3.} {\ul Reports filed by the commissioner.} {\ul If a company fails to file a report } \n\line 265.4{\ul required by subdivision 1, the commissioner may, from information in the commissioner's } \n\line 265.5{\ul possession or obtainable by the commissioner, make and file a report for the company or } \n\line 265.6{\ul make the valuations, recommended valuations, and equalizations required under sections } \n\line 265.7{\ul 273.33, 273.35 to 273.37, and 273.3711.} \n\line 265.8{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 265.9 Sec. 25. Minnesota Statutes 2014, section 287.2205, is amended to read: \n\line 265.10287.2205 TAX-FORFEITED LAND. \n\line 265.11 Before a state deed for tax-forfeited land may be issued, the deed tax must be paid \n\line 265.12by the purchaser of tax-forfeited land whether the purchase is the result of a public \n\line 265.13auction or private sale or a repurchase of tax-forfeited land. State agencies and local \n\line 265.14units of government that acquire tax-forfeited land by purchase or any other means are \n\line 265.15subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a \n\line 265.16governmental subdivision for an authorized public use under section \n\line 282.01, subdivision \n\line 265.171a\n\line ,{\ul for a school forest under section 282.01, subdivision 1a,} or for redevelopment purposes \n\line 265.18under section \n\line 282.01, subdivision 1b. \n\line 265.19{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 265.20 Sec. 26. Minnesota Statutes 2014, section 289A.08, is amended by adding a \n\line 265.21subdivision to read: \n\line 265.22 {\ul Subd. 17.} {\ul Format.} {\ul The commissioner shall prescribe the content, format, and } \n\line 265.23{\ul manner of the returns and other documents pursuant to section 270C.30. This does not } \n\line 265.24{\ul authorize the commissioner to require individual income taxpayers to file individual } \n\line 265.25{\ul income tax returns electronically.} \n\line 265.26{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 265.27 Sec. 27. Minnesota Statutes 2014, section 289A.09, subdivision 1, is amended to read: \n\line 265.28 Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax \n\line 265.29under section \n\line 290.92, subdivision 2a or 3, and a person required to deduct and withhold \n\line 265.30tax under section \n\line 290.923, subdivision 2, must file a return with the commissioner for each \n\line 265.31quarterly period unless otherwise prescribed by the commissioner. \n\line 266.1(b) A person or corporation required to make deposits under section \n\line 290.9201, \n\line 266.2subdivision 8\n\line , must file an entertainer withholding tax return with the commissioner. \n\line 266.3(c) A person required to withhold an amount under section \n\line 290.9705, subdivision 1, \n\line 266.4must file a return. \n\line 266.5(d) A partnership required to deduct and withhold tax under section \n\line 290.92, \n\line 266.6subdivision 4b\n\line , must file a return. \n\line 266.7(e) An S corporation required to deduct and withhold tax under section \n\line 290.92, \n\line 266.8subdivision 4c\n\line , must also file a return. \n\line 266.9(f) {\strike Returns must be filed in the form and manner, and contain the information } \n\line 266.10{\strike prescribed by the commissioner.} {\ul The commissioner shall prescribe the content, format, } \n\line 266.11{\ul and manner of the returns pursuant to section 270C.30. }Every return for taxes withheld \n\line 266.12must be signed by the employer, entertainment entity, contract payor, partnership, or S \n\line 266.13corporation, or a designee. \n\line 266.14{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 266.15 Sec. 28. Minnesota Statutes 2014, section 289A.11, subdivision 1, is amended to read: \n\line 266.16 Subdivision 1. Return required. (a) Except as provided in section \n\line 289A.18, \n\line 266.17subdivision 4\n\line , for the month in which taxes imposed by chapter 297A are payable, or for \n\line 266.18which a return is due, a return for the preceding reporting period must be filed with the \n\line 266.19commissioner {\strike in the form and manner the commissioner prescribes}. {\ul The commissioner } \n\line 266.20{\ul shall prescribe the content, format, and manner of the returns pursuant to section 270C.30. } \n\line 266.21A person making sales at retail at two or more places of business may file a consolidated \n\line 266.22return subject to rules prescribed by the commissioner. In computing the dollar amount of \n\line 266.23items on the return, the amounts are rounded off to the nearest whole dollar, disregarding \n\line 266.24amounts less than 50 cents and increasing amounts of 50 cents to 99 cents to the next \n\line 266.25highest dollar. \n\line 266.26(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax \n\line 266.27permit under chapter 297A and who makes annual purchases, for use in a trade or business, \n\line 266.28of less than $18,500, or a person who is not required to hold a sales tax permit and who \n\line 266.29makes purchases for personal use, that are subject to the use tax imposed by section \n\line \n\line 266.30297A.63\n\line , may file an annual use tax return {\strike on a form prescribed by the commissioner}. \n\line 266.31{\ul The commissioner shall prescribe the content, format, and manner of the return pursuant } \n\line 266.32{\ul to section 270C.30. }If a person who qualifies for an annual use tax reporting period is \n\line 266.33required to obtain a sales tax permit or makes use tax purchases, for use in a trade or \n\line 266.34business, in excess of $18,500 during the calendar year, the reporting period must be \n\line 267.1considered ended at the end of the month in which the permit is applied for or the purchase \n\line 267.2in excess of $18,500 is made and a return must be filed for the preceding reporting period. \n\line 267.3(c) Notwithstanding {\strike paragraph}{\ul paragraphs} (a){\ul and (b)}, a person prohibited by the \n\line 267.4person's religious beliefs from using electronics shall be allowed to file by mail, without \n\line 267.5any additional fees. The filer must notify the commissioner of revenue of the intent to file \n\line 267.6by mail on a form prescribed by the commissioner. A return filed under this paragraph \n\line 267.7must be postmarked no later than the day the return is due in order to be considered filed \n\line 267.8on a timely basis. \n\line 267.9{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 267.10 Sec. 29. Minnesota Statutes 2014, section 289A.18, subdivision 1, is amended to read: \n\line 267.11 Subdivision 1. Individual income, fiduciary income, corporate franchise, and \n\line 267.12entertainment taxes; partnership and S corporation returns; information returns; \n\line 267.13mining company returns. The returns required to be made under sections \n\line 289A.08 and \n\line \n\line 267.14289A.12\n\line must be filed at the following times: \n\line 267.15 (1) returns made on the basis of the calendar year must be filed on April 15 following \n\line 267.16the close of the calendar year, except that returns of corporations{\ul and partnerships} must be \n\line 267.17filed on the due date for filing the federal income tax return; \n\line 267.18 (2) returns made on the basis of the fiscal year must be filed on the 15th day of the \n\line 267.19fourth month following the close of the fiscal year, except that returns of corporations{\ul and } \n\line 267.20{\ul partnerships} must be filed on the due date for filing the federal income tax return; \n\line 267.21 (3) returns for a fractional part of a year must be filed on the due date for filing the \n\line 267.22federal income tax return; \n\line 267.23 (4) in the case of a final return of a decedent for a fractional part of a year, the return \n\line 267.24must be filed on the 15th day of the fourth month following the close of the 12-month \n\line 267.25period that began with the first day of that fractional part of a year; \n\line 267.26 (5) in the case of the return of a cooperative association, returns must be filed on or \n\line 267.27before the 15th day of the ninth month following the close of the taxable year; \n\line 267.28 (6) if a corporation has been divested from a unitary group and files a return for \n\line 267.29a fractional part of a year in which it was a member of a unitary business that files a \n\line 267.30combined report under section \n\line 290.17, subdivision 4, the divested corporation's return \n\line 267.31must be filed on the 15th day of the third month following the close of the common \n\line 267.32accounting period that includes the fractional year; \n\line 267.33 (7) returns of entertainment entities must be filed on April 15 following the close of \n\line 267.34the calendar year; \n\line 268.1 (8) returns required to be filed under section \n\line 289A.08, subdivision 4, must be filed \n\line 268.2on the 15th day of the fifth month following the close of the taxable year; \n\line 268.3 (9) returns of mining companies must be filed on May 1 following the close of the \n\line 268.4calendar year; and \n\line 268.5 (10) returns required to be filed with the commissioner under section \n\line 289A.12, \n\line 268.6subdivision 2\n\line , 4 to 10, or 16 must be filed within 30 days after being demanded by the \n\line 268.7commissioner. \n\line 268.8{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 268.9 Sec. 30. Minnesota Statutes 2014, section 289A.37, subdivision 2, is amended to read: \n\line 268.10 Subd. 2. Erroneous refunds. {\strike An erroneous refund is considered an underpayment } \n\line 268.11{\strike of tax on the date made. An assessment of a deficiency arising out of an erroneous refund } \n\line 268.12{\strike may be made at any time within two years from the making of the refund. If part of the } \n\line 268.13{\strike refund was induced by fraud or misrepresentation of a material fact, the assessment may } \n\line 268.14{\strike be made at any time.}{\ul (a) Except as provided in paragraph (b), an erroneous refund occurs } \n\line 268.15{\ul when the commissioner issues a payment to a person that exceeds the amount the person } \n\line 268.16{\ul is entitled to receive under law. An erroneous refund is considered an underpayment } \n\line 268.17{\ul of tax on the date issued.} \n\line 268.18{\ul (b) To the extent that the amount paid does not exceed the amount claimed by the } \n\line 268.19{\ul taxpayer, an erroneous refund does not include the following:} \n\line 268.20{\ul (1) any amount of a refund or credit paid pursuant to a claim for refund filed by } \n\line 268.21{\ul a taxpayer, including but not limited to refunds of claims made under section 290.06, } \n\line 268.22{\ul subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; } \n\line 268.23{\ul 290.0681; or 290.0692; or chapter 290A; or} \n\line 268.24{\ul (2) any amount paid pursuant to a claim for refund of an overpayment of tax filed } \n\line 268.25{\ul by a taxpayer.} \n\line 268.26{\ul (c) The commissioner may make an assessment to recover an erroneous refund at } \n\line 268.27{\ul any time within two years from the issuance of the erroneous refund. If all or part of } \n\line 268.28{\ul the erroneous refund was induced by fraud or misrepresentation of a material fact, the } \n\line 268.29{\ul assessment may be made at any time.} \n\line 268.30{\ul (d) Assessments of amounts that are not erroneous refunds under paragraph (b) } \n\line 268.31{\ul must be conducted under section 289A.38.} \n\line 268.32{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment and } \n\line 268.33{\ul applies retroactively to all refunds issued on, before, or after that date, but does not apply to } \n\line 268.34{\ul the refunds at issue in Connexus Energy et al. v. Commissioner of Revenue, 868 N.W.2d } \n\line 269.1{\ul 234 (Minn. 2015). Notwithstanding any law to the contrary, the changes in this section do } \n\line 269.2{\ul not invalidate any assessments made by the commissioner prior to this effective date.} \n\line \n\line 269.3 Sec. 31. Minnesota Statutes 2014, section 289A.50, subdivision 7, is amended to read: \n\line 269.4 Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the \n\line 269.5refund claim is denied in whole or in part, the taxpayer may: \n\line 269.6(1) file an administrative appeal as provided in section \n\line 270C.35, or an appeal \n\line 269.7with the Tax Court, within 60 days after {\strike issuance}{\ul the notice date} of the commissioner's \n\line 269.8notice of denial; or \n\line 269.9(2) file an action in the district court to recover the refund. \n\line 269.10(b) An action in the district court on a denied claim for refund must be brought \n\line 269.11within 18 months of the {\ul notice }date of the denial of the claim by the commissioner.{\ul For } \n\line 269.12{\ul the purposes of this section, "notice date" is defined in section 270C.35, subdivision 3.} \n\line 269.13(c) No action in the district court or the Tax Court shall be brought within six months \n\line 269.14of the filing of the refund claim unless the commissioner denies the claim within that period. \n\line 269.15(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial \n\line 269.16of the claim, the taxpayer may bring an action in the district court or the Tax Court at any \n\line 269.17time after the expiration of six months from the time the claim was filed. \n\line 269.18(e) The commissioner and the taxpayer may agree to extend the period for bringing \n\line 269.19an action in the district court. \n\line 269.20(f) An action for refund of tax by the taxpayer must be brought in the district court \n\line 269.21of the district in which lies the county of the taxpayer's residence or principal place of \n\line 269.22business. In the case of an estate or trust, the action must be brought at the principal place \n\line 269.23of its administration. Any action may be brought in the district court for Ramsey County. \n\line 269.24{\ul EFFECTIVE DATE.}{\ul This section is effective for claims for refund denied after } \n\line 269.25{\ul December 31, 2016.} \n\line \n\line 269.26 Sec. 32. {\ul [290B.11] FORMS. } \n\line 269.27{\ul The commissioner shall prescribe the content, format, and manner of all forms and } \n\line 269.28{\ul other documents required to be filed under this chapter pursuant to section 270C.30.} \n\line 269.29{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 269.30 Sec. 33. {\ul [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.} \n\line 270.1{\ul On request of the commissioner, the commissioner of natural resources must } \n\line 270.2{\ul annually provide verification that the claimant has a current forest management plan on } \n\line 270.3{\ul file with the Department of Natural Resources.} \n\line 270.4{\ul EFFECTIVE DATE.}{\ul This section is effective for certifications filed after July } \n\line 270.5{\ul 1, 2017.} \n\line \n\line 270.6 Sec. 34. {\ul [293.15] FORMS. } \n\line 270.7{\ul The commissioner shall prescribe the content, format, and manner of all forms and } \n\line 270.8{\ul other documents required to be filed under this chapter pursuant to section 270C.30.} \n\line 270.9{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 270.10 Sec. 35. Minnesota Statutes 2014, section 295.55, subdivision 6, is amended to read: \n\line 270.11 Subd. 6. Form of returns. {\strike The estimated payments and annual return must contain } \n\line 270.12{\strike the information and be in the form prescribed by the commissioner.}{\ul The commissioner } \n\line 270.13{\ul shall prescribe the content, format, and manner of the estimated payment forms and annual } \n\line 270.14{\ul return pursuant to section 270C.30.} \n\line 270.15{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 270.16 Sec. 36. Minnesota Statutes 2014, section 296A.02, is amended by adding a \n\line 270.17subdivision to read: \n\line 270.18 {\ul Subd. 5.} {\ul Forms.} {\ul The commissioner shall prescribe the content, format, and manner } \n\line 270.19{\ul of all forms and other documents required to be filed under this chapter pursuant to section } \n\line 270.20{\ul 270C.30.} \n\line 270.21{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 270.22 Sec. 37. Minnesota Statutes 2014, section 296A.22, subdivision 9, is amended to read: \n\line 270.23 Subd. 9. Abatement of penalty. (a) The commissioner may by written order \n\line 270.24abate any penalty imposed under this section, if in the commissioner's opinion there is \n\line 270.25reasonable cause to do so. \n\line 270.26(b) A request for abatement of penalty must be filed with the commissioner within \n\line 270.2760 days of the {\ul notice }date {\ul of }the {\strike notice stating that a} penalty {\strike has been imposed was mailed } \n\line 270.28{\strike to the taxpayer's last known address}.{\ul For purposes of this section, the term "notice date" } \n\line 270.29{\ul means the notice date designated by the commissioner on the order or other notice that a } \n\line 270.30{\ul penalty has been imposed.} \n\line 271.1(c) If the commissioner issues an order denying a request for abatement of penalty, \n\line 271.2the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to \n\line 271.3Tax Court as provided in section \n\line 271.06. If the commissioner does not issue an order on \n\line 271.4the abatement request within 60 days from the date the request is received, the taxpayer \n\line 271.5may appeal to Tax Court as provided in section \n\line 271.06. \n\line 271.6{\ul EFFECTIVE DATE.}{\ul This section is effective for orders and notices dated after } \n\line 271.7{\ul December 31, 2016.} \n\line \n\line 271.8 Sec. 38. Minnesota Statutes 2014, section 296A.26, is amended to read: \n\line 271.9296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT. \n\line 271.10In lieu of an administrative appeal under section \n\line 270C.35, any person aggrieved by \n\line 271.11an order of the commissioner fixing a tax, penalty, or interest under this chapter may, within \n\line 271.1260 days from the {\ul notice }date of {\strike the notice of} the order, appeal to the Tax Court in the manner \n\line 271.13provided under section \n\line 271.06.{\ul For purposes of this section, the term "notice date" means } \n\line 271.14{\ul the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.} \n\line 271.15{\ul EFFECTIVE DATE.}{\ul This section is effective for orders dated after December } \n\line 271.16{\ul 31, 2016.} \n\line \n\line 271.17 Sec. 39. Minnesota Statutes 2014, section 297D.02, is amended to read: \n\line 271.18297D.02 ADMINISTRATION. \n\line 271.19The commissioner of revenue shall administer this chapter.{\ul The commissioner shall } \n\line 271.20{\ul prescribe the content, format, and manner of all forms and other documents required to be } \n\line 271.21{\ul filed under this chapter pursuant to section 270C.30.} Payments required by this chapter \n\line 271.22must be made to the commissioner on the form provided by the commissioner. Tax obligors \n\line 271.23are not required to give their name, address, Social Security number, or other identifying \n\line 271.24information on the form. The commissioner shall collect all taxes under this chapter. \n\line 271.25{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 271.26 Sec. 40. Minnesota Statutes 2014, section 297E.02, subdivision 3, is amended to read: \n\line 271.27 Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due \n\line 271.28and payable to the commissioner when the gambling tax return is required to be filed. \n\line 271.29Distributors must file their monthly sales figures with the commissioner on a form \n\line 271.30prescribed by the commissioner. Returns covering the taxes imposed under this section \n\line 271.31must be filed with the commissioner on or before the 20th day of the month following the \n\line 272.1close of the previous calendar month. {\strike The commissioner may require that the returns be } \n\line 272.2{\strike filed via magnetic media or electronic data transfer.}{\ul The commissioner shall prescribe the } \n\line 272.3{\ul content, format, and manner of returns or other documents pursuant to section 270C.30. } \n\line 272.4The proceeds, along with the revenue received from all license fees and other fees under \n\line 272.5sections \n\line 349.11 to \n\line 349.191, \n\line 349.211, and \n\line 349.213, must be paid to the commissioner of \n\line 272.6management and budget for deposit in the general fund. \n\line 272.7(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by \n\line 272.8the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards \n\line 272.9by the organization is exempt from taxes imposed by chapter 297A and is exempt from all \n\line 272.10local taxes and license fees except a fee authorized under section \n\line 349.16, subdivision 8. \n\line 272.11(c) One-half of one percent of the revenue deposited in the general fund under \n\line 272.12paragraph (a), is appropriated to the commissioner of human services for the compulsive \n\line 272.13gambling treatment program established under section \n\line 245.98. One-half of one percent \n\line 272.14of the revenue deposited in the general fund under paragraph (a), is appropriated to \n\line 272.15the commissioner of human services for a grant to the state affiliate recognized by \n\line 272.16the National Council on Problem Gambling to increase public awareness of problem \n\line 272.17gambling, education and training for individuals and organizations providing effective \n\line 272.18treatment services to problem gamblers and their families, and research relating to \n\line 272.19problem gambling. Money appropriated by this paragraph must supplement and must not \n\line 272.20replace existing state funding for these programs. \n\line 272.21{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 272.22 Sec. 41. Minnesota Statutes 2014, section 297E.04, subdivision 1, is amended to read: \n\line 272.23 Subdivision 1. Reports of sales. A manufacturer who sells gambling product for \n\line 272.24use or resale in this state, or for receipt by a person or entity in this state, shall file with the \n\line 272.25commissioner, on a form prescribed by the commissioner, a report of gambling product \n\line 272.26sold to any person in the state, including the established governing body of an Indian tribe \n\line 272.27recognized by the United States Department of the Interior. The report must be filed \n\line 272.28monthly on or before the 20th day of the month succeeding the month in which the sale \n\line 272.29was made. {\strike The commissioner may require that the report be submitted via magnetic } \n\line 272.30{\strike media or electronic data transfer.}{\ul The commissioner shall prescribe the content, format, } \n\line 272.31{\ul and manner of returns or other documents pursuant to section 270C.30.} The commissioner \n\line 272.32may inspect the premises, books, records, and inventory of a manufacturer without notice \n\line 272.33during the normal business hours of the manufacturer. A person violating this section is \n\line 272.34guilty of a misdemeanor. \n\line 273.1{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 273.2 Sec. 42. Minnesota Statutes 2014, section 297E.05, subdivision 4, is amended to read: \n\line 273.3 Subd. 4. Reports. A distributor shall report monthly to the commissioner, on a form \n\line 273.4the commissioner prescribes, its sales of each type of gambling product. This report must \n\line 273.5be filed monthly on or before the 20th day of the month succeeding the month in which \n\line 273.6the sale was made. {\strike The commissioner may require that a distributor submit the monthly } \n\line 273.7{\strike report and invoices required in this subdivision via magnetic media or electronic data } \n\line 273.8{\strike transfer.}{\ul The commissioner shall prescribe the content, format, and manner of returns or } \n\line 273.9{\ul other documents pursuant to section 270C.30.} \n\line 273.10{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 273.11 Sec. 43. Minnesota Statutes 2014, section 297E.06, subdivision 1, is amended to read: \n\line 273.12 Subdivision 1. Reports. An organization must file with the commissioner, on a form \n\line 273.13prescribed by the commissioner, a report showing all gambling activity conducted by that \n\line 273.14organization for each month. Gambling activity includes all gross receipts, prizes, all \n\line 273.15gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful \n\line 273.16purpose and board-approved expenditures. The report must be filed with the commissioner \n\line 273.17on or before the 20th day of the month following the month in which the gambling activity \n\line 273.18takes place. {\strike The commissioner may require that the reports be filed via magnetic media or } \n\line 273.19{\strike electronic data transfer.}{\ul The commissioner shall prescribe the content, format, and manner } \n\line 273.20{\ul of returns or other documents pursuant to section 270C.30.} \n\line 273.21{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 273.22 Sec. 44. Minnesota Statutes 2014, section 297F.09, subdivision 1, is amended to read: \n\line 273.23 Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day \n\line 273.24of each calendar month, a distributor with a place of business in this state shall file a \n\line 273.25return with the commissioner showing the quantity of cigarettes manufactured or brought \n\line 273.26in from outside the state or purchased during the preceding calendar month and the \n\line 273.27quantity of cigarettes sold or otherwise disposed of in this state and outside this state \n\line 273.28during that month. A licensed distributor outside this state shall in like manner file a \n\line 273.29return showing the quantity of cigarettes shipped or transported into this state during the \n\line 273.30preceding calendar month. {\strike Returns must be made in the form and manner prescribed by } \n\line 273.31The commissioner {\ul shall prescribe the content, format, and manner of returns pursuant to } \n\line 273.32{\ul section 270C.30, }and {\ul the returns }must contain any other information required by the \n\line 274.1commissioner. The return must be accompanied by a remittance for the full unpaid tax \n\line 274.2liability shown by it. For distributors subject to the accelerated tax payment requirements \n\line 274.3in subdivision 10, the return for the May liability is due two business days before June 30th \n\line 274.4of the year and the return for the June liability is due on or before August 18th of the year. \n\line 274.5{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 274.6 Sec. 45. Minnesota Statutes 2014, section 297F.23, is amended to read: \n\line 274.7297F.23 JUDICIAL REVIEW. \n\line 274.8In lieu of an administrative appeal under section \n\line 270C.35, a person aggrieved by an \n\line 274.9order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 \n\line 274.10days from the {\ul notice }date of {\strike the notice of} the order, appeal to the Tax Court in the manner \n\line 274.11provided under section \n\line 271.06.{\ul For purposes of this section, the term "notice date" means } \n\line 274.12{\ul the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.} \n\line 274.13{\ul EFFECTIVE DATE.}{\ul This section is effective for orders dated after December } \n\line 274.14{\ul 31, 2016.} \n\line \n\line 274.15 Sec. 46. Minnesota Statutes 2014, section 297G.09, subdivision 1, is amended to read: \n\line 274.16 Subdivision 1. Monthly returns; manufacturers, wholesalers, brewers, or \n\line 274.17importers. On or before the 18th day of each calendar month following the month in \n\line 274.18which a licensed manufacturer or wholesaler first sells wine and distilled spirits within \n\line 274.19the state, or a brewer or importer first sells or imports fermented malt beverages, or a \n\line 274.20wholesaler knowingly acquires title to or possession of untaxed fermented malt beverages, \n\line 274.21the licensed manufacturer, wholesaler, brewer, or importer liable for the excise tax must \n\line 274.22file a return with the commissioner, and in addition must keep records and render reports \n\line 274.23as required by the commissioner. {\strike Returns must be made in a form and manner prescribed } \n\line 274.24{\strike by the commissioner, and}{\ul The commissioner shall prescribe the content, format, and } \n\line 274.25{\ul manner of returns pursuant to section 270C.30. The returns} must contain any other \n\line 274.26information required by the commissioner. Returns must be accompanied by a remittance \n\line 274.27for the full unpaid tax liability. Returns must be filed regardless of whether a tax is due. \n\line 274.28{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 274.29 Sec. 47. Minnesota Statutes 2014, section 297G.22, is amended to read: \n\line 274.30297G.22 JUDICIAL REVIEW. \n\line 275.1In lieu of an administrative appeal under this chapter, a person aggrieved by an order \n\line 275.2of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days \n\line 275.3from {\strike the date of} the notice {\ul date }of the order, appeal to the Tax Court in the manner provided \n\line 275.4under section \n\line 271.06.{\ul For purposes of this section, the term "notice date" means the notice } \n\line 275.5{\ul date designated by the commissioner on the order fixing a tax, penalty, or interest.} \n\line 275.6{\ul EFFECTIVE DATE.}{\ul This section is effective for orders dated after December } \n\line 275.7{\ul 31, 2016.} \n\line \n\line 275.8 Sec. 48. Minnesota Statutes 2014, section 297I.30, is amended by adding a subdivision \n\line 275.9to read: \n\line 275.10 {\ul Subd. 11.} {\ul Format.} {\ul The commissioner shall prescribe the content, format, and } \n\line 275.11{\ul manner of returns or other documents pursuant to section 270C.30.} \n\line 275.12{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line \n\line 275.13 Sec. 49. Minnesota Statutes 2014, section 297I.60, subdivision 2, is amended to read: \n\line 275.14 Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in \n\line 275.15whole or in part, the taxpayer may contest the denial by: \n\line 275.16(1) filing an administrative appeal with the commissioner under section \n\line 270C.35; \n\line 275.17(2) filing an appeal in Tax Court within 60 days of the {\ul notice }date of the {\strike notice of } \n\line 275.18denial; or \n\line 275.19(3) filing an action in the district court to recover the refund. \n\line 275.20(b) An action in the district court must be brought within 18 months {\strike following}{\ul of} the \n\line 275.21{\ul notice }date of the {\strike notice of} denial.{\ul For purposes of this section, "notice date" is defined in } \n\line 275.22{\ul section 270C.35, subdivision 3.} An action for refund of tax or surcharge must be brought \n\line 275.23in the district court of the district in which lies the taxpayer's principal place of business or \n\line 275.24in the District Court for Ramsey County. If a taxpayer files a claim for refund and the \n\line 275.25commissioner has not issued a denial of the claim, the taxpayer may bring an action in \n\line 275.26the district court or the Tax Court at any time after the expiration of six months from the \n\line 275.27time the claim was filed. \n\line 275.28{\ul EFFECTIVE DATE.}{\ul This section is effective for claims for refund denied after } \n\line 275.29{\ul December 31, 2016.} \n\line \n\line 275.30 Sec. 50. Minnesota Statutes 2014, section 469.319, subdivision 5, is amended to read: \n\line 275.31 Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a \n\line 275.32repayment required under subdivision 1, if the commissioner, in consultation with \n\line 276.1the commissioner of employment and economic development and appropriate officials \n\line 276.2from the local government units in which the qualified business is located, determines \n\line 276.3that requiring repayment of the tax is not in the best interest of the state or the local \n\line 276.4government units and the business ceased operating as a result of circumstances beyond \n\line 276.5its control including, but not limited to: \n\line 276.6 (1) a natural disaster; \n\line 276.7 (2) unforeseen industry trends; or \n\line 276.8 (3) loss of a major supplier or customer. \n\line 276.9 (b)(1) The commissioner shall waive repayment required under subdivision 1a if \n\line 276.10the commissioner has waived repayment by the operating business under subdivision 1, \n\line 276.11unless the person that received benefits without having to operate a business in the zone \n\line 276.12was a contributing factor in the qualified business becoming subject to repayment under \n\line 276.13subdivision 1; \n\line 276.14 (2) the commissioner shall waive the repayment required under subdivision 1a, even \n\line 276.15if the repayment has not been waived for the operating business if: \n\line 276.16 (i) the person that received benefits without having to operate a business in the zone \n\line 276.17and the business that operated in the zone are not related parties as defined in section \n\line 276.18267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and \n\line 276.19 (ii) actions of the person were not a contributing factor in the qualified business \n\line 276.20becoming subject to repayment under subdivision 1. \n\line 276.21(c) Requests for waiver must be made no later than 60 days after the earlier of the \n\line 276.22notice date of an order issued under subdivision 4, paragraph (d), or the date of a tax \n\line 276.23statement issued under subdivision 4, paragraph (c).{\ul For purposes of this section, the term } \n\line 276.24{\ul "notice date" means the notice date designated by the commissioner on the order.} \n\line 276.25{\ul EFFECTIVE DATE.}{\ul This section is effective for orders of the commissioner of } \n\line 276.26{\ul revenue dated after December 31, 2016.} \n\line \n\line 276.27 Sec. 51. {\ul REPEALER.} \n\line 276.28{\ul Minnesota Statutes 2014, section 290C.06,}{\ul is repealed.} \n\line 276.29{\ul EFFECTIVE DATE.}{\ul This section is effective the day following final enactment.} \n\line "276.30Delete the title and insert: \n\line \n\line
276.31"A bill for an act \n\line \n\line
276.32relating to financing of state and local government; making changes to property, \n\line 276.33individual income, corporate franchise, estate, sales and use, excise, petroleum \n\line 276.34and other fuel, gambling, tobacco, special, mineral, local, and other taxes and \n\line 276.35tax-related provisions; modifying local government aids and credits; amending \n\line 276.36county levy authority; exempting certain electric generation facility property and \n\line 277.1soccer stadium property from property tax; extending homestead value exclusion \n\line 277.2for spouses of qualifying deceased veterans; amending the state general levy; \n\line 277.3abating local property taxes in the Lake Mille Lacs area; establishing school \n\line 277.4building bond agricultural credit; establishing reimbursement for certain \n\line 277.5out-of-home placements of Indian children; establishing riparian protection \n\line 277.6aid; forgiving certain aid penalties; providing for federal tax conformity; \n\line 277.7modifying income tax credits; providing income tax credits; changing income \n\line 277.8tax modifications; modifying residency rules; modifying sales and use tax \n\line 277.9definitions; modifying sales and use tax collection requirements; modifying sales \n\line 277.10and use tax exemptions; providing for reimbursement from the Minnesota Sports \n\line 277.11Facilities Authority of certain sales and use taxes; allocating certain sales and use \n\line 277.12tax revenues; modifying and allowing certain local sales and use taxes; modifying \n\line 277.13provisions for gasoline used as a substitute for aviation gasoline; providing \n\line 277.14tax rates on paper pull-tabs sold at bingo halls; providing definitions and a \n\line 277.15tax rate for vapor products; modifying taconite tax distributions and deposits; \n\line 277.16providing for local development projects; modifying public finance provisions; \n\line 277.17transferring approval authority from the Iron Range Resources and Rehabilitation \n\line 277.18Board to the commissioner of Iron Range resources and rehabilitation; \n\line 277.19requiring the commissioner of Iron Range resources and rehabilitation to seek \n\line 277.20a recommendation from the board in certain circumstances; providing for \n\line 277.21transfer of ownership, eligibility, certification, and notification requirements for \n\line 277.22enrollment of land in the Sustainable Forest Incentive Act; modifying the budget \n\line 277.23reserve; providing a new markets grant program; providing a tax time savings \n\line 277.24grant program; providing civil and criminal penalties for sales suppression \n\line 277.25devices; allocating additional amounts to the border city enterprise zones; making \n\line 277.26clarifying and conforming changes; removing obsolete language; requiring \n\line 277.27reports; appropriating money;amending Minnesota Statutes 2014, sections 13.51, \n\line 277.28subdivision 2; 15.38, subdivision 7; 69.021, subdivision 5; 116J.424; 136A.129, \n\line 277.29subdivision 3; 138.053; 216B.161, subdivision 1; 270.071, subdivisions 2, 7, 8, \n\line 277.30by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision; \n\line 277.31270.12, by adding a subdivision; 270.82, subdivision 1; 270A.03, subdivision \n\line 277.325; 270B.14, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, \n\line 277.33subdivision 2; 270C.347, subdivision 1; 270C.35, subdivision 3, by adding \n\line 277.34a subdivision; 270C.38, subdivision 1; 270C.445, by adding a subdivision; \n\line 277.35270C.446, subdivision 5; 270C.72, subdivision 4; 270C.89, subdivision 1; \n\line 277.36271.06, subdivisions 2, 7; 271.08, subdivision 1; 271.21, subdivision 2; 272.02, \n\line 277.37subdivisions 9, 10, by adding subdivisions; 272.0211, subdivision 1; 272.025, \n\line 277.38subdivision 1; 272.029, subdivisions 2, 4, by adding a subdivision; 272.0295, \n\line 277.39subdivision 4; 272.115, subdivision 2; 272.162; 273.032; 273.061, subdivision \n\line 277.407; 273.08; 273.121, by adding a subdivision; 273.124, subdivision 13; 273.13, \n\line 277.41subdivisions 22, 34; 273.1392; 273.1393; 273.33, subdivisions 1, 2; 273.371; \n\line 277.42273.372, subdivisions 1, 2, 4, by adding subdivisions; 274.01, subdivision 1; \n\line 277.43274.13, subdivision 1; 274.135, subdivision 3; 275.025, subdivisions 1, 2, \n\line 277.444; 275.065, subdivisions 1, 3; 275.066; 275.07, subdivisions 1, 2; 275.08, \n\line 277.45subdivision 1b; 275.62, subdivision 2; 276.04, subdivision 2; 276.11, subdivision \n\line 277.461; 276.111; 276A.01, subdivisions 8, 17; 278.01, subdivision 1; 278.12; 278.14, \n\line 277.47subdivision 1; 279.01, subdivisions 1, 2, 3; 279.03, subdivision 2; 279.37, \n\line 277.48subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261, subdivision 2; 282.38, \n\line 277.49subdivision 1; 287.2205; 289A.08, subdivisions 11, 16, by adding a subdivision; \n\line 277.50289A.09, subdivisions 1, 2; 289A.11, subdivision 1; 289A.12, subdivision \n\line 277.5114; 289A.18, subdivision 1, by adding a subdivision; 289A.20, subdivision \n\line 277.522; 289A.31, subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, \n\line 277.53subdivision 6; 289A.50, subdivision 7; 289A.60, subdivision 28, by adding a \n\line 277.54subdivision; 290.01, subdivisions 7, 19a, 19b, 19c, 19d; 290.06, subdivision 22; \n\line 277.55290.067, subdivisions 1, 2b; 290.0671, subdivision 7; 290.0672, subdivision \n\line 277.561; 290.0674, subdivision 2, by adding a subdivision; 290.0677, subdivision \n\line 277.571a; 290.068, subdivision 2; 290.091, subdivisions 2, 3; 290.0921, subdivision \n\line 277.583; 290.0922, subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1; \n\line 278.1290A.03, subdivision 13; 290A.19; 290C.01; 290C.02, subdivisions 1, 3, 6; \n\line 278.2290C.03; 290C.04; 290C.05; 290C.055; 290C.07; 290C.08, subdivision 1; \n\line 278.3290C.10; 290C.11; 290C.13, subdivision 6; 291.016, subdivisions 2, 3; 291.03, \n\line 278.4subdivisions 9, 11, by adding a subdivision; 291.031; 295.54, subdivision 2; \n\line 278.5295.55, subdivision 6; 296A.01, subdivisions 12, 33, 42, by adding subdivisions; \n\line 278.6296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08, \n\line 278.7subdivision 2; 296A.09, subdivisions 1, 3, 5, 6; 296A.15, subdivisions 1, 4; \n\line 278.8296A.17, subdivisions 1, 2, 3; 296A.18, subdivisions 1, 8; 296A.19, subdivision \n\line 278.91; 296A.22, subdivision 9; 296A.26; 297A.61, subdivisions 3, 10; 297A.66, \n\line 278.10subdivisions 1, 2, 4, by adding a subdivision; 297A.67, subdivision 7a, by adding \n\line 278.11subdivisions; 297A.68, subdivision 9; 297A.70, subdivision 14; 297A.71, by \n\line 278.12adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.815, subdivision 3; \n\line 278.13297A.82, subdivisions 4, 4a; 297D.02; 297E.02, subdivisions 1, 3, 7; 297E.04, \n\line 278.14subdivision 1; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.01, \n\line 278.15subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by adding \n\line 278.16subdivisions; 297F.09, subdivision 1; 297F.23; 297G.09, subdivision 1; 297G.22; \n\line 278.17297H.04, subdivision 2; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10, \n\line 278.18subdivisions 1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2; \n\line 278.19298.001, subdivision 8; 298.01, subdivisions 3b, 4c; 298.22, subdivisions 1, 1a, \n\line 278.205a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5, \n\line 278.216; 298.223, subdivisions 1, 2; 298.227; 298.24, by adding a subdivision; 298.28, \n\line 278.22subdivisions 3, 5, 7a, 9d; 298.292, subdivision 2; 298.294; 298.296, subdivisions \n\line 278.231, 2, 4; 298.2961, subdivisions 2, 4; 298.298; 298.46, subdivision 2; 349.12, by \n\line 278.24adding a subdivision; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32; \n\line 278.25412.301; 469.034, subdivision 2; 469.101, subdivision 1; 469.169, by adding a \n\line 278.26subdivision; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.319, \n\line 278.27subdivision 5; 473.39, by adding a subdivision; 473H.09; 475.58, subdivision \n\line 278.283b; 475.60, subdivision 2; 477A.013, by adding a subdivision; 477A.017, \n\line 278.29subdivisions 2, 3; 477A.03, subdivision 2b; 477A.19, by adding subdivisions; \n\line 278.30559.202, subdivision 2; 609.5316, subdivision 3; Minnesota Statutes 2015 \n\line 278.31Supplement, sections 16A.152, subdivision 2; 289A.02, subdivision 7; 290.01, \n\line 278.32subdivisions 19, 31; 290.0671, subdivision 1; 290A.03, subdivision 15; 291.005, \n\line 278.33subdivision 1; 297E.02, subdivision 6; 477A.015; 477A.03, subdivision 2a; Laws \n\line 278.341980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws \n\line 278.351988, chapter 645, section 3, as amended; Laws 1991, chapter 291, article 8, \n\line 278.36section 27, subdivisions 3, as amended, 4, as amended, 5, 6; Laws 1996, chapter \n\line 278.37471, article 2, section 29, subdivision 4, as amended; article 3, section 51; Laws \n\line 278.381999, chapter 243, article 4, section 18, subdivision 1, as amended; Laws 2001, \n\line 278.39First Special Session chapter 5, article 3, section 86; Laws 2008, chapter 154, \n\line 278.40article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section 20; \n\line 278.41Laws 2009, chapter 88, article 2, section 46, subdivisions 1, as amended, 2, 3, as \n\line 278.42amended, 4, 5; article 5, section 17, as amended; Laws 2014, chapter 308, article \n\line 278.431, section 14, subdivision 2; article 6, section 9; article 9, section 94; proposing \n\line 278.44coding for new law in Minnesota Statutes, chapters 103C; 116J; 216B; 270C; \n\line 278.45273; 290; 290B; 290C; 293; 477A; 609; repealing Minnesota Statutes 2014, \n\line 278.46sections 272.02, subdivision 23; 281.22; 290.067, subdivisions 2, 2a; 290C.02, \n\line 278.47subdivisions 5, 9; 290C.06; 297F.05, subdivision 1a; 477A.20; Minnesota Rules, \n\line 278.48parts 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3." \n\line \n\line
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We request the adoption of this report and repassage of the bill. \n\line \n\line