Minnesota Legislature
HF 848
Conference Committee Report - 89th Legislature (2015 - 2016) Posted on 05/22/2016 11:13am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 848
1.3relating to financing and operation of state and local government; making
1.4changes to individual income, corporate franchise, property, sales and use,
1.5excise, estate, mineral, tobacco, gambling, special, local, and other taxes and
1.6tax-related provisions; providing for long-term care savings plans; modifying
1.7business income tax credits; modifying income tax subtractions and additions;
1.8modifying the definition of resident for income tax purposes; modifying
1.9the dependent care credit, education credit, and research credit; providing
1.10credits for MNsure premium payments, attaining a master's degree, student
1.11loan payments, college savings plans, and job training centers; modifying
1.12reciprocity provisions; providing an additional personal and dependent
1.13exemption; allowing a reverse referendum for property tax levies under certain
1.14circumstances; modifying dates for local referenda related to spending; changing
1.15proposed levy certification dates for special taxing districts; modifying general
1.16property tax provisions; providing for joint county and township assessment
1.17agreements; modifying the definition of agricultural homestead; modifying
1.18property classification definitions; permanently extending the market value
1.19exclusion for surviving spouses of deceased service members and permanently
1.20disabled veterans; modifying provisions for appeals and equalizations courses;
1.21providing a tax credit for overvalued property; modifying and phasing out the
1.22state general levy; modifying proposed levy provisions; modifying due dates
1.23for property taxes; changing withdrawal procedures for the Sustainable Forest
1.24Incentive Program; authorizing valuation exclusion for certain improvements
1.25to homestead and commercial-industrial property; providing an increased estate
1.26tax exemption amount and other estate tax provisions; providing for certain
1.27economic development projects; providing for the Minnesota New Markets Jobs
1.28Act; restricting expenditures and other powers related to certain rail projects;
1.29providing for additional border city zone allocations; modifying general tax
1.30increment financing provisions; modifying provisions for the Destination Medical
1.31Center; modifying general and local sales and use tax provisions; modifying sales
1.32tax definitions and refunds related to petroleum and special fuel, durable medical
1.33equipment, instructional materials, propane tanks, bullion, capital equipment,
1.34and nonprofit groups; providing for a vendor allowance; providing exemptions
1.35for animal shelters, city celebrations, BMX tracks, and certain building and
1.36construction materials; repealing the tax on digital products; providing a separate
1.37rate for certain modular housing; modifying gambling taxes; providing a
1.38definition and rate of tax for vapor products under the tobacco tax; modifying
1.39cigarette stamp provisions; modifying rates for pull tabs sold at bingo halls;
1.40modifying miscellaneous tax provisions; modifying sales tax deposits, accounts,
1.41and provisions for transportation purposes; modifying local government aids
1.42and credits; providing for a school building bond agricultural credit; modifying
1.43assessor accreditation; accelerating the repeal of MinnesotaCare provider taxes;
2.1creating a county program aid working group; establishing trust fund accounts;
2.2providing trust fund payments to counties; modifying provisions related to
2.3payments in lieu of taxes for natural resources land; repealing the political
2.4contribution refund; making various conforming and technical changes; requiring
2.5reports; appropriating money;amending Minnesota Statutes 2014, sections
2.616A.726; 40A.18, subdivision 2; 62V.05, subdivision 5; 97A.055, subdivision
2.72; 97A.056, subdivision 1a, by adding subdivisions; 116J.8737, subdivisions 5,
2.812; 116P.02, subdivision 1, by adding a subdivision; 123B.63, subdivision 3;
2.9126C.17, subdivision 9; 205.10, subdivision 1; 205A.05, subdivision 1; 216B.46;
2.10237.19; 270A.03, subdivision 7; 270B.14, subdivision 17; 270C.13, subdivision
2.111; 270C.9901; 273.061, subdivision 4; 273.072, by adding a subdivision;
2.12273.124, subdivision 14; 273.13, subdivisions 23, 25, 34; 274.014, subdivision
2.132; 275.025; 275.065, subdivisions 1, 3; 275.07, subdivisions 1, 2; 275.08,
2.14subdivision 1b; 275.60; 276.04, subdivisions 1, 2; 278.12; 279.01, subdivisions
2.151, 3; 279.37, subdivision 2; 282.01, subdivision 4; 282.261, subdivision 2;
2.16289A.02, subdivision 7, as amended; 289A.10, subdivision 1; 289A.12, by
2.17adding a subdivision; 289A.20, subdivision 4; 289A.50, subdivision 1; 290.01,
2.18subdivisions 6, 7, 19, as amended, 19a, 19b, 19d, 29, 31, as amended; 290.06,
2.19by adding subdivisions; 290.067, subdivision 1; 290.0671, subdivisions 1, 6a;
2.20290.0672, subdivision 2; 290.0674, subdivisions 1, 2, by adding a subdivision;
2.21290.0677, subdivision 2; 290.068, subdivisions 1, 3, 6a, by adding a subdivision;
2.22290.081; 290.091, subdivision 2; 290.191, subdivision 5; 290A.03, subdivision
2.2315, as amended; 290C.10; 291.005, subdivision 1, as amended; 291.016,
2.24subdivision 3; 291.03, subdivisions 1, 1d; 296A.01, subdivision 12; 296A.08,
2.25subdivision 2; 296A.16, subdivision 2; 297A.61, subdivisions 3, 4, 38; 297A.62,
2.26subdivision 3; 297A.668, subdivisions 1, 2, 6a, 7; 297A.669, subdivision 14a;
2.27297A.67, subdivisions 7a, 13a, by adding subdivisions; 297A.68, subdivisions
2.285, 19; 297A.70, subdivisions 4, 10, 14, by adding subdivisions; 297A.71, by
2.29adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.77, subdivision
2.303; 297A.815, subdivision 3; 297A.94; 297A.992, subdivisions 1, 6, 6a, by
2.31adding a subdivision; 297A.994, subdivision 4; 297E.02, subdivisions 1, 6;
2.32297F.01, subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by
2.33adding subdivisions; 297F.06, subdivisions 1, 4; 297F.08, subdivisions 5, 7, 8;
2.34297F.09, subdivision 1; 297I.20, by adding a subdivision; 298.24, subdivision
2.351; 309.53, subdivision 3; 345.42, by adding a subdivision; 349.12, by adding a
2.36subdivision; 412.221, subdivision 2; 412.301; 426.19, subdivision 2; 447.045,
2.37subdivisions 2, 3, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision 1;
2.38469.053, subdivision 5; 469.0724; 469.107, subdivision 2; 469.169, by adding
2.39a subdivision; 469.174, subdivisions 12, 14; 469.175, subdivision 3; 469.176,
2.40subdivisions 4, 4c; 469.1761, by adding a subdivision; 469.1763, subdivisions 1,
2.412, 3; 469.178, subdivision 7; 469.190, subdivisions 1, 5; 469.40, subdivision 11,
2.42as amended; 469.43, by adding a subdivision; 469.45, subdivisions 1, 2; 469.47,
2.43subdivision 4, as amended; 471.57, subdivision 3; 471.571, subdivision 3;
2.44471.572, subdivisions 2, 4; 473.13, by adding a subdivision; 473.39, by adding a
2.45subdivision; 473.446, subdivision 1; 473H.09; 473H.17, subdivision 1a; 475.59;
2.46477A.013, subdivision 10, by adding a subdivision; 477A.017, subdivision 2,
2.47by adding a subdivision; 477A.03, subdivisions 2a, 2b; 477A.10; 477A.11, by
2.48adding subdivisions; 609.5316, subdivision 3; 611.27, subdivisions 13, 15;
2.49Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended;
2.50Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as
2.51amended, 5, 6; Laws 1996, chapter 471, article 3, section 51; Laws 1999, chapter
2.52243, article 4, section 18, subdivision 1, as amended; Laws 2008, chapter 366,
2.53article 7, section 20; Laws 2009, chapter 88, article 5, section 17, as amended;
2.54Laws 2011, First Special Session chapter 9, article 6, section 97, subdivision
2.556; Laws 2014, chapter 308, article 6, section 7; proposing coding for new law
2.56in Minnesota Statutes, chapters 11A; 16A; 16B; 116J; 116P; 117; 273; 274;
2.57275; 290; 297A; 416; 459; 473; 477A; 609; proposing coding for new law as
2.58Minnesota Statutes, chapter 116X; repealing Minnesota Statutes 2014, sections
3.110A.322, subdivision 4; 13.4967, subdivision 2; 205.10, subdivision 3; 290.06,
3.2subdivision 23; 290.067, subdivisions 2, 2a, 2b; 297A.61, subdivisions 50, 51,
3.352, 53, 54, 55, 56; 297A.992, subdivision 12; 297F.05, subdivision 1a; 477A.017,
3.4subdivision 3; 477A.085; 477A.19; Minnesota Rules, part 4503.1400, subpart 4.
3.5May 22, 2016
3.6The Honorable Kurt L. Daudt
3.7Speaker of the House of Representatives
3.8The Honorable Sandra L. Pappas
3.9President of the Senate
3.10We, the undersigned conferees for H. F. No. 848 report that we have agreed upon the
3.11items in dispute and recommend as follows:
3.12That the Senate recede from its amendments and that H. F. No. 848 be further
3.13amended as follows:
3.14Delete everything after the enacting clause and insert:
3.17 Section 1. [103C.333] COUNTY LEVY AUTHORITY.
3.18Notwithstanding any other law to the contrary, a county levying a tax under section
3.19103C.331 shall not include any taxes levied under those authorities in the levy certified
3.20under section 275.07, subdivision 1, paragraph (a). A county levying under section
3.21103C.331 shall separately certify that amount, and the auditor shall extend that levy as a
3.22special taxing district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).
3.23EFFECTIVE DATE.This section is effective for certifications made in 2016 and
3.24thereafter.
3.25 Sec. 2. Minnesota Statutes 2014, section 138.053, is amended to read:
3.26138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR
3.27TOWNS.
3.28 The governing body of any home rule charter or statutory city or town may annually
3.29appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
3.30market value, derived from ad valorem taxes on property or other revenues, to be paid to
3.31the historical society of its respective city, town, or county to be used for the promotion of
3.32historical work and to aid in defraying the expenses of carrying on the historical work in the
3.33county. No city or town may appropriate any funds for the benefit of any historical society
3.34unless the society is affiliated with and approved by the Minnesota Historical Society.
3.35EFFECTIVE DATE.This section is effective the day following final enactment.
4.1 Sec. 3. [216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE
4.2ASSOCIATION.
4.3A cooperative electric association that has elected to be subject to rate regulation
4.4under section 216B.026 is eligible to file with the commission for approval of an
4.5adjustment for real and personal property taxes, fees, and permits.
4.6EFFECTIVE DATE.This section is effective the day following final enactment.
4.7 Sec. 4. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision
4.8to read:
4.9 Subd. 100. Electric generation facility; personal property. (a) Notwithstanding
4.10subdivision 9, clause (a), attached machinery, transformers, and other personal property
4.11that (1) is part of a natural gas-fired combined heat and power facility, (2) generates
4.12electricity and steam for at least partial consumption as part of an industrial use, including
4.13corn processing, (3) is less than 80,000 kilowatts of installed capacity, and (4) meets the
4.14requirements of this subdivision, are exempt.
4.15(b) At the time of construction, the facility must:
4.16(1) be designed to utilize natural gas as a primary fuel;
4.17(2) not be owned by a public utility as defined in section 216B.02, subdivision 4;
4.18(3) be located within 15 miles of an existing natural gas pipeline and within one mile
4.19of an existing electrical transmission substation; and
4.20(4) be located outside the metropolitan area as defined in section 473.121,
4.21subdivision 2.
4.22(c) Construction of the facility must commence after January 1, 2015, and
4.23before January 1, 2019. Property eligible for this exemption does not include electric
4.24transmission lines and interconnections, or gas pipelines and interconnections, appurtenant
4.25to the property or the facility.
4.26(d) In lieu of personal property taxes each year, the owner of the combined heat and
4.27power facility shall pay a base payment of 0.14 cents per kilowatt-hour of electricity
4.28produced by the facility during the previous calendar year. In addition to the base payment
4.29and in lieu of personal property taxes each year, the owner of the combined heat and power
4.30facility shall pay an additional payment of 0.08 cents per kilowatt-hour of electricity
4.31produced by the facility during the previous calendar year if, during the previous calendar
4.32year, the host township or city had an agreement with a municipal utilities commission
4.33to share the cost of acquiring, developing, and marketing land for industrial purposes,
4.34and under such agreement both the host township or city and the municipal utilities
4.35commission provided funds during the previous calendar year as part of a cost-sharing
5.1agreement. The additional payment to be paid by the owner of the combined heat and
5.2power facility shall be the lesser of 0.08 cents per kilowatt-hour of electricity produced
5.3by the facility or 57 percent of the amount funded by the host township or city during
5.4the previous calendar year pursuant to the aforementioned cost-sharing agreement. The
5.5payments imposed under this section shall be paid to the county treasurer for the benefit of
5.6the host township or city, at the time and in the manner provided for payment of property
5.7taxes under section 277.01, subdivision 3. If unpaid, the payments are subject to the same
5.8enforcement, collection, and interest and penalties as delinquent personal property taxes.
5.9Except to the extent inconsistent with this section, sections 277.01 to 277.24 and 278.01
5.10to 278.13 apply to the payments imposed under this section, and for purposes of those
5.11sections the payments imposed under this section are considered personal property taxes.
5.12(e) The owner of the combined heat and power facility shall file a report with the
5.13commissioner of revenue annually on or before February 1, detailing the amount of
5.14electricity in kilowatt-hours that was produced by the facility and the amount funded by
5.15the host township or city in accordance with the cost-sharing agreement described in
5.16paragraph (d) during the previous calendar year. The commissioner shall prescribe the
5.17form of the report. The report must contain the information required by the commissioner
5.18to determine the payments due under this section payable in the current year. If an owner
5.19of the facility subject to taxation under this section fails to file the report by the due date,
5.20the commissioner of revenue shall determine the payments based upon the nameplate
5.21capacity of the system multiplied by a capacity factor of 85 percent.
5.22EFFECTIVE DATE.This section is effective for taxes payable beginning in 2017
5.23and thereafter.
5.24 Sec. 5. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision
5.25to read:
5.26 Subd. 101. Electric generation facility; personal property. (a) Notwithstanding
5.27subdivision 9, clause (a), attached machinery and other personal property that is part of an
5.28electric generation facility with more than 35 megawatts and less than 40 megawatts of
5.29installed capacity and that meets the requirements of this subdivision is exempt from taxes
5.30and payments in lieu of taxes. The facility must:
5.31(1) be designed to utilize natural gas as a primary fuel;
5.32(2) be owned and operated by a municipal power agency as defined in section
5.33453.52, subdivision 8;
5.34(3) be located within 800 feet of an existing natural gas pipeline;
6.1(4) satisfy a resource deficiency identified in an approved integrated resource plan
6.2filed under section 216B.2422;
6.3(5) be located outside the metropolitan area as defined under section 473.121,
6.4subdivision 2; and
6.5(6) have received, by resolution, the approval of the governing bodies of the city
6.6and county in which it is located for the exemption of personal property provided by
6.7this subdivision.
6.8(b) Construction of the facility must have been commenced after January 1, 2015,
6.9and before January 1, 2016. Property eligible for this exemption does not include electric
6.10transmission lines and interconnections or gas pipelines and interconnections appurtenant
6.11to the property or the facility.
6.12EFFECTIVE DATE.This section is effective for taxes payable in 2017 and
6.13thereafter.
6.14 Sec. 6. Minnesota Statutes 2014, section 272.162, is amended to read:
6.15272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.
6.16 Subdivision 1. Conditions restricting transfer. When a deed or other instrument
6.17conveying a parcel of land is presented to the county auditor for transfer or division under
6.18sections272.12 ,
272.16 , and
272.161 , the auditor shall not transfer or divide the land or its
6.19net tax capacity in the official records and shall not certify the instrument as provided in
6.20section272.12 , if:
6.21(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;
6.22(b) The part conveyed appears within the area of application of municipal or
6.23county subdivision regulations adopted and filed under section 394.35 or section462.36,
6.24subdivision 1 ; and
6.25(c) The part conveyed is part of or constitutes a subdivision as defined in section
6.26462.352, subdivision 12
.
6.27 Subd. 2. Conditions allowing transfer. (a) Notwithstanding the provisions of
6.28subdivision 1, the county auditor may transfer or divide the land and its net tax capacity
6.29and may certify the instrument if the instrument contains a certification by the clerk of
6.30the municipality or designated county planning official:
6.31(a) (1) that the municipality's or county's subdivision regulations do not apply;
6.32(b) (2) that the subdivision has been approved by the governing body of the
6.33municipality or county; or
7.1(c) (3) that the restrictions on the division of taxes and filing and recording have
7.2been waived by resolution of the governing body of the municipality or county in the
7.3particular case because compliance would create an unnecessary hardship and failure to
7.4comply would not interfere with the purpose of the regulations.
7.5(b) If any of the conditions for certification by the municipality or county as provided
7.6in this subdivision exist and the municipality or county does not certify that they exist
7.7within 24 hours after the instrument of conveyance has been presented to the clerk of
7.8the municipality or designated county planning official, the provisions of subdivision 1
7.9do not apply.
7.10(c) If an unexecuted instrument is presented to the municipality or county and
7.11any of the conditions for certification by the municipality or county as provided in
7.12this subdivision exist, the unexecuted instrument must be certified by the clerk of the
7.13municipality or the designated county planning official.
7.14 Subd. 3. Applicability of restrictions. (a) This section does not apply to the
7.15exceptions set forth in section272.12 .
7.16(b) This section applies only to land within municipalities or counties which choose
7.17to be governed by its provisions. A municipality or county may choose to have this
7.18section apply to the property within its boundaries by filing a certified copy of a resolution
7.19of its governing body making that choice with the auditor and recorder of the county in
7.20which it is located.
7.21EFFECTIVE DATE.This section is effective the day following final enactment.
7.22 Sec. 7. Minnesota Statutes 2014, section 273.13, subdivision 34, is amended to read:
7.23 Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a
7.24portion of the market value of property owned by a veteran and serving as the veteran's
7.25homestead under this section is excluded in determining the property's taxable market
7.26value if the veteran has a service-connected disability of 70 percent or more as certified
7.27by the United States Department of Veterans Affairs. To qualify for exclusion under this
7.28subdivision, the veteran must have been honorably discharged from the United States
7.29armed forces, as indicated by United States Government Form DD214 or other official
7.30military discharge papers.
7.31 (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
7.32excluded, except as provided in clause (2); and
7.33 (2) for a total (100 percent) and permanent disability, $300,000 of market value is
7.34excluded.
8.1 (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
8.2clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
8.3spouse holds the legal or beneficial title to the homestead and permanently resides there,
8.4the exclusion shall carry over to the benefit of the veteran's spousefor the current taxes
8.5payable year and for eight additional taxes payable years or until such time as the spouse
8.6remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first.
8.7Qualification under this paragraph requires an annual application under paragraph (h).
8.8(d) If the spouse of a member of any branch or unit of the United States armed
8.9forces who dies due to a service-connected cause while serving honorably in active
8.10service, as indicated on United States Government Form DD1300 or DD2064, holds
8.11the legal or beneficial title to a homestead and permanently resides there, the spouse is
8.12entitled to the benefit described in paragraph (b), clause (2),for eight taxes payable years,
8.13or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the
8.14property, whichever comes first.
8.15(e) If a veteran meets the disability criteria of paragraph (a) but does not own
8.16property classified as homestead in the state of Minnesota, then the homestead of the
8.17veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
8.18would otherwise qualify for under paragraph (b).
8.19 (f) In the case of an agricultural homestead, only the portion of the property
8.20consisting of the house and garage and immediately surrounding one acre of land qualifies
8.21for the valuation exclusion under this subdivision.
8.22 (g) A property qualifying for a valuation exclusion under this subdivision is not
8.23eligible for the market value exclusion under subdivision 35, or classification under
8.24subdivision 22, paragraph (b).
8.25 (h) To qualify for a valuation exclusion under this subdivision a property owner
8.26must apply to the assessor by July 1 of each assessment year, except that an annual
8.27reapplication is not required once a property has been accepted for a valuation exclusion
8.28under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and
8.29the property continues to qualify until there is a change in ownership. For an application
8.30received after July 1 of any calendar year, the exclusion shall become effective for the
8.31following assessment year.
8.32(i) A first-time application by a qualifying spouse for the market value exclusion under
8.33paragraph (d) must be made any time within two years of the death of the service member.
8.34(j) For purposes of this subdivision:
8.35(1) "active service" has the meaning given in section190.05 ;
8.36(2) "own" means that the person's name is present as an owner on the property deed;
9.1(3) "primary family caregiver" means a person who is approved by the secretary of
9.2the United States Department of Veterans Affairs for assistance as the primary provider
9.3of personal care services for an eligible veteran under the Program of Comprehensive
9.4Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
9.5and
9.6(4) "veteran" has the meaning given the term in section197.447 .
9.7(k) The purpose of this provision of law providing a level of homestead property tax
9.8relief for gravely disabled veterans, their primary family caregivers, and their surviving
9.9spouses is to help ease the burdens of war for those among our state's citizens who bear
9.10those burdens most heavily.
9.11EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
9.12 Sec. 8. Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:
9.13 Subdivision 1. Levy amount. The state general levy is levied against
9.14commercial-industrial property and seasonal residential recreational property, as defined
9.15in this section. The state general levy base amount for commercial-industrial property is
9.16$592,000,000 $762,664,000 for taxes payable in 2002 2017. The state general levy base
9.17amount for seasonal-recreational property is $43,111,000 for taxes payable in 2017. For
9.18taxes payable in subsequent years,the each levy base amount is increased each year by
9.19multiplying the levy base amount for the prior year by the sum of one plus the rate of
9.20increase, if any, in the implicit price deflator for government consumption expenditures
9.21and gross investment for state and local governments prepared by the Bureau of Economic
9.22Analysts of the United States Department of Commerce for the 12-month period ending
9.23March 31 of the year prior to the year the taxes are payable. The tax under this section is
9.24not treated as a local tax rate under section469.177 and is not the levy of a governmental
9.25unit under chapters 276A and 473F.
9.26The commissioner shall increase or decrease the preliminary or finalrate rates for a
9.27year as necessary to account for errors and tax base changes that affected a preliminary or
9.28final rate for either of the two preceding years. Adjustments are allowed to the extent that
9.29the necessary information is available to the commissioner at the time the rates for a year
9.30must be certified, and for the following reasons:
9.31(1) an erroneous report of taxable value by a local official;
9.32(2) an erroneous calculation by the commissioner; and
9.33(3) an increase or decrease in taxable value for commercial-industrial or seasonal
9.34residential recreational property reported on the abstracts of tax lists submitted under
10.1section275.29 that was not reported on the abstracts of assessment submitted under
10.2section270C.89 for the same year.
10.3The commissioner may, but need not, make adjustments if the total difference in the tax
10.4levied for the year would be less than $100,000.
10.5EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
10.6 Sec. 9. Minnesota Statutes 2014, section 275.025, subdivision 2, is amended to read:
10.7 Subd. 2. Commercial-industrial tax capacity. For the purposes of this section,
10.8"commercial-industrial tax capacity" means the tax capacity of all taxable property
10.9classified as class 3 or class 5(1) under section273.13 , except for excluding: (1) the first
10.10$100,000 of market value of each parcel of commercial-industrial net tax capacity as
10.11defined under section 273.13, subdivision 24, clauses (1) and (2); (2) electric generation
10.12attached machinery under class 3; and (3) property described in section473.625 . County
10.13commercial-industrial tax capacity amounts are not adjusted for the captured net tax
10.14capacity of a tax increment financing district under section469.177, subdivision 2 , the
10.15net tax capacity of transmission lines deducted from a local government's total net tax
10.16capacity under section273.425 , or fiscal disparities contribution and distribution net tax
10.17capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures
10.18for determining eligibility for tier 1 under section 273.13, subdivision 24, clause (1),
10.19shall apply in determining the portion of a property eligible to be considered within the
10.20first $100,000 of market value.
10.21EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
10.22 Sec. 10. Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read:
10.23 Subd. 4. Apportionment and levy of state general tax.Ninety-five percent of The
10.24state general tax must be levied by applying a uniform rate to all commercial-industrial tax
10.25capacity andfive percent of the state general tax must be levied by applying a uniform
10.26rate to all seasonal residential recreational tax capacity. On or before October 1 each year,
10.27the commissioner of revenue shall certify the preliminary state general levy rates to each
10.28county auditor that must be used to prepare the notices of proposed property taxes for taxes
10.29payable in the following year. By January 1 of each year, the commissioner shall certify the
10.30final state general levyrate rates to each county auditor that shall be used in spreading taxes.
10.31EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
10.32 Sec. 11. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:
11.1 Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the
11.2contrary, on or before September 30, each countyand each, home rule charter or statutory
11.3city, and special taxing district, excluding the Metropolitan Council and the Metropolitan
11.4Mosquito Control District, shall certify to the county auditor the proposed property tax
11.5levy for taxes payable in the following year. The proposed levy certification date for
11.6the Metropolitan Council shall be as prescribed in sections 473.249 and 473.446. The
11.7proposed levy certification date for the Metropolitan Mosquito Control District shall be
11.8as prescribed in section 473.711.
11.9 (b) Notwithstanding any law or charter to the contrary, on or before September 15,
11.10each townand each special taxing district, the Metropolitan Council, and the Metropolitan
11.11Mosquito Control District shall adopt and certify to the county auditor a proposed property
11.12tax levy for taxes payable in the following year. For towns, the final certified levy shall
11.13also be considered the proposed levy.
11.14 (c) On or before September 30, each school district that has not mutually agreed
11.15with its home county to extend this date shall certify to the county auditor the proposed
11.16property tax levy for taxes payable in the following year. Each school district that has
11.17agreed with its home county to delay the certification of its proposed property tax levy
11.18must certify its proposed property tax levy for the following year no later than October
11.197. The school district shall certify the proposed levy as:
11.20 (1) a specific dollar amount by school district fund, broken down between
11.21voter-approved and non-voter-approved levies and between referendum market value
11.22and tax capacity levies; or
11.23 (2) the maximum levy limitation certified by the commissioner of education
11.24according to section126C.48, subdivision 1 .
11.25 (d) If the board of estimate and taxation or any similar board that establishes
11.26maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
11.27property tax levies for funds under its jurisdiction by charter to the county auditor by the
11.28date specified in paragraph (a), the city shall be deemed to have certified its levies for
11.29those taxing jurisdictions.
11.30 (e) For purposes of this section, "special taxing district" means a special taxing
11.31district as defined in section275.066 . Intermediate school districts that levy a tax
11.32under chapter 124 or 136D, joint powers boards established under sections123A.44 to
11.33123A.446
, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are
11.34also special taxing districts for purposes of this section.
11.35(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
11.36tax levy under this subdivision, the taxing authority shall announce the time and place
12.1of its subsequent regularly scheduled meetings at which the budget and levy will be
12.2discussed and at which the public will be allowed to speak. The time and place of those
12.3meetings must be included in the proceedings or summary of proceedings published in the
12.4official newspaper of the taxing authority under section123B.09 ,
375.12 , or
412.191 .
12.5EFFECTIVE DATE.This section is effective beginning with proposed levy
12.6certifications for taxes payable in 2017.
12.7 Sec. 12. Minnesota Statutes 2014, section 275.066, is amended to read:
12.8275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
12.9 For the purposes of property taxation and property tax state aids, the term "special
12.10taxing districts" includes the following entities:
12.11 (1) watershed districts under chapter 103D;
12.12 (2) sanitary districts under sections442A.01 to
442A.29 ;
12.13 (3) regional sanitary sewer districts under sections115.61 to
115.67 ;
12.14 (4) regional public library districts under section134.201 ;
12.15 (5) park districts under chapter 398;
12.16 (6) regional railroad authorities under chapter 398A;
12.17 (7) hospital districts under sections447.31 to
447.38 ;
12.18 (8) St. Cloud Metropolitan Transit Commission under sections458A.01 to
458A.15 ;
12.19 (9) Duluth Transit Authority under sections458A.21 to
458A.37 ;
12.20 (10) regional development commissions under sections462.381 to
462.398 ;
12.21 (11) housing and redevelopment authorities under sections469.001 to
469.047 ;
12.22 (12) port authorities under sections469.048 to
469.068 ;
12.23 (13) economic development authorities under sections469.090 to
469.1081 ;
12.24 (14) Metropolitan Council under sections473.123 to
473.549 ;
12.25 (15) Metropolitan Airports Commission under sections473.601 to
473.679 ;
12.26 (16) Metropolitan Mosquito Control Commission under sections473.701 to
473.716 ;
12.27 (17) Morrison County Rural Development Financing Authority under Laws 1982,
12.28chapter 437, section 1;
12.29 (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
12.30 (19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
12.31sections 1 to 6;
12.32 (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
12.335, section 39;
13.1 (21) Middle Mississippi River Watershed Management Organization under sections
13.2103B.211
and
103B.241 ;
13.3 (22) emergency medical services special taxing districts under section 144F.01;
13.4 (23) a county levying under the authority of section103B.241 ,
103B.245 , or
13.5103B.251, or 103C.331 ;
13.6 (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
13.7under Laws 2003, First Special Session chapter 21, article 4, section 12;
13.8 (25) an airport authority created under section360.0426 ; and
13.9 (26) any other political subdivision of the state of Minnesota, excluding counties,
13.10school districts, cities, and towns, that has the power to adopt and certify a property tax
13.11levy to the county auditor, as determined by the commissioner of revenue.
13.12EFFECTIVE DATE.This section is effective for taxes payable in 2017 and
13.13thereafter.
13.14 Sec. 13. Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read:
13.15 Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b),
13.16the taxes voted by cities, counties, school districts, and special districts shall be certified
13.17by the proper authorities to the county auditor on or before five working days after
13.18December 20 in each year. A town must certify the levy adopted by the town board to
13.19the county auditor by September 15 each year. If the town board modifies the levy at a
13.20special town meeting after September 15, the town board must recertify its levy to the
13.21county auditor on or before five working days after December 20. If a city, town, county,
13.22school district, or special district fails to certify its levy by that date, its levy shall be the
13.23amount levied by it for the preceding year.
13.24(b)(i) The taxes voted by counties under sections103B.241 ,
103B.245 , and
13.25103B.251 , and 103C.331 shall be separately certified by the county to the county auditor
13.26on or before five working days after December 20 in each year. The taxes certified
13.27shall not be reduced by the county auditor by the aid received under section273.1398,
13.28subdivision 3 . If a county fails to certify its levy by that date, its levy shall be the amount
13.29levied by it for the preceding year.
13.30(ii) For purposes of the proposed property tax notice under section275.065 and
13.31the property tax statement under section276.04 , for the first year in which the county
13.32implements the provisions of this paragraph, the county auditor shall reduce the county's
13.33levy for the preceding year to reflect any amount levied for water management purposes
13.34under clause (i) included in the county's levy.
14.1EFFECTIVE DATE.This section is effective for taxes payable in 2017 and
14.2thereafter.
14.3 Sec. 14. Minnesota Statutes 2014, section 276.11, subdivision 1, is amended to read:
14.4 Subdivision 1. Generally. As soon as practical after the settlement day determined
14.5in section276.09 , the county treasurer shall pay to the treasurer of a town, city, school
14.6district, or special district, on the warrant of the county auditor, all receipts of taxes levied
14.7by the taxing district and deliver up all orders and other evidences of indebtedness of
14.8the taxing district, taking triplicate receipts for them. The treasurer shall file one of the
14.9receipts with the county auditor, and shall return one by mail on the day of its receipt to
14.10the clerk of the town, city, school district, or special district to which payment was made.
14.11The clerk shall keep the receipt in the clerk's office. Upon written request of the taxing
14.12district, to the extent practicable, the county treasurer shall make partial payments of
14.13amounts collected periodically in advance of the next settlement and distribution. A
14.14statement prepared by the county treasurer must accompany each payment. It must state
14.15the years for which taxes included in the payment were collected and, for each year, the
14.16amount of the taxes and any penalties on the tax. Upon written request of a taxing district,
14.17except school districts, the county treasurer shall pay at least 70 percent of the estimated
14.18collection within 30 days after the settlement date determined in section276.09 . Within
14.19seven eight business days after the due date, or 28 calendar days after the postmark date
14.20on the envelopes containing real or personal property tax statements, whichever is latest,
14.21the county treasurer shall pay to the treasurer of the school districts 50 percent of the
14.22estimated collections arising from taxes levied by and belonging to the school district,
14.23unless the school district elects to receive 50 percent of the estimated collections arising
14.24from taxes levied by and belonging to the school district after making a proportionate
14.25reduction to reflect any loss in collections as the result of any delay in mailing tax
14.26statements. In that case, 50 percent of those adjusted, estimated collections shall be paid
14.27by the county treasurer to the treasurer of the school district within seven business days of
14.28the due date. The remaining 50 percent of the estimated collections must be paid to the
14.29treasurer of the school district within the next seven business days of the later of the dates
14.30in the preceding sentence, unless the school district elects to receive the remainder of its
14.31estimated collections after a proportionate reduction has been made to reflect any loss in
14.32collections as the result of any delay in mailing tax statements. In that case, the remaining
14.3350 percent of those adjusted, estimated collections shall be paid by the county treasurer to
14.34the treasurer of the school district within 14 days of the due date. The treasurer shall pay
14.35the balance of the amounts collected to a municipal corporation or other body within 60
15.1days after the settlement date determined in section276.09 . After 45 days interest at an
15.2annual rate of eight percent accrues and must be paid to the taxing district. Interest must
15.3be paid upon appropriation from the general revenue fund of the county. If not paid, it
15.4may be recovered by the taxing district, in a civil action.
15.5EFFECTIVE DATE.This section is effective for property taxes payable in 2017
15.6and thereafter.
15.7 Sec. 15. Minnesota Statutes 2014, section 276.111, is amended to read:
15.8276.111 DISTRIBUTIONS AND FINAL YEAR-END SETTLEMENT.
15.9Withinseven eight business days after October 15, the county treasurer shall pay to
15.10the school districts 50 percent of the estimated collections arising from taxes levied by
15.11and belonging to the school district from the settlement day determined in section276.09
15.12to October 20. The remaining 50 percent of the estimated tax collections must be paid
15.13to the school district within the next seven business days. Withinten 11 business days
15.14after November 15, the county treasurer shall pay to the school district 100 percent of the
15.15estimated collections arising from taxes levied by and belonging to the school districts
15.16from October 20 to November 20.
15.17Withinten 11 business days after November 15, the county treasurer shall pay to
15.18each taxing district, except any school district, 100 percent of the estimated collections
15.19arising from taxes levied by and belonging to each taxing district from the settlement day
15.20determined in section276.09 to November 20.
15.21On or before January 5, the county treasurer shall make full settlement with the
15.22county auditor of all receipts collected from the settlement day determined in section
15.23276.09
to December 31. After subtracting any tax distributions that have been made to
15.24the taxing districts in October and November, the treasurer shall pay to each of the taxing
15.25districts on or before January 25, the balance of the tax amounts collected on behalf of
15.26each taxing district. Interest accrues at an annual rate of eight percent and must be paid to
15.27the taxing district if this final settlement amount is not paid by January 25. Interest must
15.28be paid upon appropriation from the general revenue fund of the county. If not paid, it
15.29may be recovered by the taxing district in a civil action.
15.30EFFECTIVE DATE.This section is effective for property taxes payable in 2017
15.31and thereafter.
15.32 Sec. 16. Minnesota Statutes 2014, section 278.12, is amended to read:
15.33278.12 REFUNDS OF OVERPAYMENT.
16.1If upon final determination the petitioner has paid more than the amount so
16.2determined to be due, judgment shall be entered in favor of the petitioner for such excess,
16.3and upon filing a copy thereof with the county auditor the auditor shall forthwith draw a
16.4warrant upon the county treasurer for the payment thereof; provided that, with the consent
16.5of the petitioner, the county auditor may, in lieu of drawing such warrant, issue to the
16.6petitioner a certificate stating the amount of such judgment, which amount may be used
16.7to apply upon any taxes due or to become due over a prescribed period of years for the
16.8taxing district or districts whose taxes or assessments are reduced, or their successors in
16.9the event of a reorganization or reincorporation of any such taxing district. In the event the
16.10auditor shall issue a warrant for refund or certificates, the amount thereof shall be charged
16.11to the state and other taxing districts in proportion to the amount of their respective taxes
16.12included in the levy and deduct the same in the subsequent distribution of any tax proceeds
16.13to the state or such taxing districts, and upon receiving any such certificate in payment of
16.14other taxes, the amount thereof shall be distributed to the state and other taxing districts
16.15in proportion to the amount of their respective taxes included in the levy; provided that
16.16if in the judgment the levy of one or more of the districts be found to be illegal, to the
16.17extent that the tax so levied is reduced on account of the illegal levies, the amount to be
16.18charged back shall be charged to the districts and the amount thereof deducted from
16.19any distributions thereafter made to them.
16.20EFFECTIVE DATE.This section is effective for refunds for overpayment of taxes
16.21payable in 2016 and thereafter.
16.22 Sec. 17. Minnesota Statutes 2014, section 278.14, subdivision 1, is amended to read:
16.23 Subdivision 1. Applicability. A county must pay a refund of a mistakenly billed
16.24tax as provided in this section. As used in this section, "mistakenly billed tax" means an
16.25amount of property tax that was billed, to the extent the amount billed exceeds the accurate
16.26tax amount due to amisclassification of the owner's property under section
273.13 or a
16.27mathematical error in the calculation of the tax on the owner's property, together with
16.28any penalty or interest paid on that amount. This section applies only to taxes payable
16.29in the current year and the two prior years. As used in this section, "mathematical error"
16.30is limited to an error in:
16.31(1) converting the market value of a property to tax capacity or to a referendum
16.32market value;
16.33(2) application of the tax rate as computed by the auditor under sections275.08,
16.34subdivisions 1b, 1c, and 1d ;
276A.06 , subdivisions 4 and 5; and
473F.07 , subdivisions 4
16.35and 5, to the property's tax capacity or referendum market value; or
17.1(3) calculation of or eligibility for a credit.
17.2The remedy provided under this section does not apply to a misclassification under
17.3section
273.13 that is due to the failure of the property owner to apply for the correct
17.4classification as required by law.
17.5EFFECTIVE DATE.This section is effective based on property taxes payable in
17.62017 and thereafter.
17.7 Sec. 18. Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read:
17.8 Subdivision 1. Due dates; penalties.Except as provided in subdivisions 3 to 5,
17.9on May 16 or 21 days after the postmark date on the envelope containing the property
17.10tax statement, whichever is later, a penalty accrues and thereafter is charged upon all
17.11unpaid taxes on real estate on the current lists in the hands of the county treasurer. The
17.12(a) When the taxes against any tract or lot exceed $100, one-half of the amount of tax
17.13due must be paid prior to May 16, and the remaining one-half must be paid prior to the
17.14following October 16. If either tax amount is unpaid as of its due date, a penalty is
17.15imposed at a rate of two percent on homestead propertyuntil May 31 and four percent
17.16on nonhomestead property. If complete payment has not been made by the first day of
17.17the month following either due date, an additional penalty of two percent onJune 1. The
17.18penalty on nonhomestead property is at a rate of four percent until May 31 homestead
17.19property andeight four percent on June 1. This penalty does not accrue until June 1 of
17.20each year, or 21 days after the postmark date on the envelope containing the property
17.21tax statements, whichever is later, on commercial use real property used for seasonal
17.22residential recreational purposes and classified as class 1c or 4c, and on other commercial
17.23use real property classified as class 3a, provided that over 60 percent of the gross income
17.24earned by the enterprise on the class 3a property is earned during the months of May,
17.25June, July, and August. In order for the first half of the tax due on class 3a property to be
17.26paid after May 15 and before June 1, or 21 days after the postmark date on the envelope
17.27containing the property tax statement, whichever is later, without penalty, the owner of
17.28the property must attach an affidavit to the payment attesting to compliance with the
17.29income provision of this subdivision nonhomestead property is imposed. Thereafter,
17.30for both homestead and nonhomestead property, on the first day of each subsequent
17.31monthbeginning July 1, up to and including October 1 following through December, an
17.32additional penalty of one percent for each month accrues and is charged on all such unpaid
17.33taxes provided thatif the due date was extended beyond May 15 as the result of any delay
17.34in mailing property tax statements no additional penalty shall accrue if the tax is paid by
17.35the extended due date. If the tax is not paid by the extended due date, then all penalties
18.1that would have accrued if the due date had been May 15 shall be charged. When the taxes
18.2against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or
18.321 days after the postmark date on the envelope containing the property tax statement,
18.4whichever is later; and, if so paid, no penalty attaches; the remaining one-half may be
18.5paid at any time prior to October 16 following, without penalty; but, if not so paid, then
18.6a penalty of two percent accrues thereon for homestead property and a penalty of four
18.7percent on nonhomestead property. Thereafter, for homestead property, on the first day of
18.8November an additional penalty of four percent accrues and on the first day of December
18.9following, an additional penalty of two percent accrues and is charged on all such unpaid
18.10taxes. Thereafter, for nonhomestead property, on the first day of November and December
18.11following, an additional penalty of four percent for each month accrues and is charged on
18.12all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days
18.13after the postmark date on the envelope containing the property tax statement, whichever
18.14is later, the same may be paid at any time prior to October 16, with accrued penalties to the
18.15date of payment added, and thereupon no penalty attaches to the remaining one-half until
18.16October 16 following the penalty must not exceed eight percent in the case of homestead
18.17property, or 12 percent in the case of nonhomestead property.
18.18(b) If the property tax statement was not postmarked prior to April 25, the first
18.19half payment due date in paragraph (a) shall be 21 days from the postmark date of the
18.20property tax statement, and all penalties referenced in paragraph (a) shall be determined
18.21with regard to the later due date.
18.22(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties
18.23as specified in paragraph (a) or (b) for the first half payment shall apply to the entire
18.24amount of the tax due.
18.25(d) For commercial use real property used for seasonal residential recreational
18.26purposes and classified as class 1c or 4c, and on other commercial use real property
18.27classified as class 3a, provided that over 60 percent of the gross income earned by the
18.28enterprise on the class 3a property is earned during the months of May, June, July, and
18.29August, penalty does not accrue until June 1 of each year. For a class 3a property to
18.30qualify for the later due date, the owner of the property must attach an affidavit to the
18.31payment attesting to compliance with the income requirements of this paragraph.
18.32 (e) This section applies to payment of personal property taxes assessed against
18.33improvements to leased property, except as provided by section277.01, subdivision 3 .
18.34 (f) A county may provide by resolution that in the case of a property owner that has
18.35multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
18.36installments as provided in this subdivision.
19.1 (g) The county treasurer may accept payments of more or less than the exact amount
19.2of a tax installment due. Payments must be applied first to the oldest installment that is due
19.3but which has not been fully paid. If the accepted payment is less than the amount due,
19.4payments must be applied first to the penalty accrued for the year or the installment being
19.5paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
19.6payment required as a condition for filing an appeal under section278.03 or any other law,
19.7nor does it affect the order of payment of delinquent taxes under section280.39 .
19.8EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
19.9 Sec. 19. Minnesota Statutes 2014, section 279.01, subdivision 2, is amended to read:
19.10 Subd. 2. Abatement of penalty. (a) The county board may, with the concurrence
19.11of the county treasurer, delegate to the county treasurer the power to abate the penalty
19.12provided for late payment of taxes in the current year. Notwithstanding section270C.86 ,
19.13if any county board so elects, the county treasurer may abate the penalty on finding that
19.14the imposition of the penalty would be unjust and unreasonable.
19.15(b) The county treasurer shall abate the penalty provided for late payment of taxes in
19.16the current year if the property tax payment is delivered by mail to the county treasurer
19.17and the envelope containing the payment is postmarked by the United States Postal
19.18Service within one business day of the due date prescribed under this section, but only if
19.19the property owner requesting the abatement has not previously received an abatement
19.20of penalty for late payment of tax under this paragraph.
19.21EFFECTIVE DATE.This section is effective for property taxes payable in 2017
19.22and thereafter.
19.23 Sec. 20. Minnesota Statutes 2014, section 279.01, subdivision 3, is amended to read:
19.24 Subd. 3. Agricultural property.(a) In the case of class 1b agricultural homestead,
19.25class 2a agricultural homestead property, and class 2a agricultural nonhomestead property,
19.26no penalties shall attach to the second one-half property tax payment as provided in this
19.27section if paid by November 15. Thereafterfor class 1b agricultural homestead and class
19.282a homestead property, on November 16 following, a penalty of six percent shall accrue
19.29and be charged on all such unpaid taxes and on December 1 following, an additional two
19.30percent shall be charged on all such unpaid taxes. Thereafter for class 2a agricultural
19.31nonhomestead property, on November 16 following, a penalty of eight percent shall accrue
19.32and be charged on all such unpaid taxes and on December 1 following, an additional four
20.1percent shall be charged on all such unpaid taxes, penalties shall attach as provided in
20.2subdivision 1.
20.3If the owner of class 1b agricultural homestead or class 2a agricultural property
20.4receives a consolidated property tax statement that shows only an aggregate of the taxes
20.5and special assessments due on that property and on other property not classified as class
20.61b agricultural homestead or class 2a agricultural property, the aggregate tax and special
20.7assessments shown due on the property by the consolidated statement will be due on
20.8November 15.
20.9(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class
20.102b property that was subject to a second-half due date of November 15 for taxes payable
20.11in 2009, the county shall not impose, or if imposed, shall abate penalty amounts in excess
20.12of those that would apply as if the second-half due date were November 15.
20.13EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
20.14 Sec. 21. Minnesota Statutes 2014, section 279.03, subdivision 2, is amended to read:
20.15 Subd. 2. Rate for composite judgment; rate for homestead composite judgment,
20.16repurchase of forfeited homestead property, and sale of forfeited property. (a) Except
20.17as provided in paragraph (b), amounts included in composite judgments authorized
20.18by section279.37, subdivision 1 , are subject to interest at the rate calculated under
20.19subdivision 1a. During each calendar year, interest shall accrue on the unpaid balance
20.20of the composite judgment from the time it is confessed until it is paid. The interest rate
20.21established at the time the judgment is confessed is fixed for the duration of that judgment.
20.22(b) The following amounts are subject to interest as provided in paragraph (c):
20.23(1) amounts included in composite judgments on parcels classified as 1a or 1b
20.24and used as the homestead of the owner;
20.25(2) amounts in contracts for repurchase of property classified as 1a or 1b at the time
20.26of forfeiture or at the time that the repurchase application is approved; and
20.27(3) sales of forfeited property pursuant to section 282.01, subdivision 4.
20.28(b) A confession of judgment covering any part of a parcel classified as 1a or 1b,
20.29and used as the homestead of the owner, is subject to interest at the rate provided in
20.30section
279.37, subdivision 2, paragraph (b). This paragraph does not apply to a relative
20.31homestead under section
273.124, subdivision 1, paragraph (c).
20.32(c) By October 15 each year the commissioner shall set the interest rate under this
20.33subdivision at the greater of five percent or two percent above the prime rate charged
20.34by banks during the six-month period ending on September 30 of that year, rounded to
20.35the nearest full percent, provided that the rate must not exceed the maximum annum
21.1rate specified under section 279.03, subdivision 1a. By November 1 of each year the
21.2commissioner must certify the rate to the county auditor. The rate of interest becomes
21.3effective on January 1 of the immediately succeeding year. The commissioner's
21.4determination under this subdivision is not a rule subject to the Administrative Procedure
21.5Act in chapter 14, including section 14.386.
21.6(d) For the purposes of this subdivision, "prime rate charged by banks" means the
21.7average predominant prime rate quoted by commercial banks to large businesses, as
21.8determined by the Board of Governors of the Federal Reserve System.
21.9EFFECTIVE DATE.This section is effective for composite judgments, repurchase
21.10contracts, and sales of forfeited property occurring after January 1, 2017.
21.11 Sec. 22. Minnesota Statutes 2014, section 279.37, subdivision 2, is amended to read:
21.12 Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to
21.13whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
21.14make and file with the county auditor of the county in which the parcel is located a written
21.15offer to pay the current taxes each year before they become delinquent, or to contest
21.16the taxes under chapter 278 and agree to confess judgment for the amount provided, as
21.17determined by the county auditor. By filing the offer, the owner waives all irregularities
21.18in connection with the tax proceedings affecting the parcel and any defense or objection
21.19which the owner may have to the proceedings, and also waives the requirements of any
21.20notice of default in the payment of any installment or interest to become due pursuant to
21.21the composite judgment to be so entered. Unless the property is subject to subdivision 1a,
21.22with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent taxes,
21.23costs, penalty, and interest, and (ii) tender all current year taxes and penalty due at the
21.24time the confession of judgment is entered. In the offer, the owner shall agree to pay the
21.25balance in nine equal installments, with interest as provided in section279.03 , payable
21.26annually on installments remaining unpaid from time to time, on or before December 31
21.27of each year following the year in which judgment was confessed.
21.28(b)For property which qualifies under section
279.03, subdivision 2, paragraph (b),
21.29each year the commissioner shall set the interest rate for offers made under paragraph (a)
21.30at the greater of five percent or two percent above the prime rate charged by banks during
21.31the six-month period ending on September 30 of that year, rounded to the nearest full
21.32percent, provided that the rate must not exceed the maximum annum rate specified under
21.33section
279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the
21.34immediately succeeding year. The commissioner's determination under this subdivision is
21.35not a rule subject to the Administrative Procedure Act in chapter 14, including section
22.114.386. If a default occurs in the payments under any confessed judgment entered under
22.2this paragraph, the taxes and penalties due are subject to the interest rate specified in section
22.3279.03. Amounts entered in judgment bear interest at the rate provided in section 279.03,
22.4subdivision 1a, unless the parcel is classified as 1a or 1b, and is used as the homestead of
22.5the owner, in which case the rate provided in section 279.03, subdivision 2, shall apply.
22.6A parcel that is classified as relative homestead under section 273.124, subdivision 1,
22.7paragraph (c), is subject to interest at the rate provided in section 279.03, subdivision 1a.
22.8(c) Interest shall commence with the date the judgment is entered. During each
22.9calendar year, interest shall accrue on the unpaid balance of the composite judgment
22.10from the time it is confessed until it is paid. The interest rate established at the time the
22.11judgment is confessed is fixed for the duration of that judgment.
22.12(d) If a default occurs in the payments under any confessed judgment, the taxes and
22.13penalties due are subject to the interest rate specified in section 279.03, subdivision 1a,
22.14regardless of the classification of the parcel. For the purposes of this subdivision:
22.15(1) the term "prime rate charged by banks" means the average predominant prime
22.16rate quoted by commercial banks to large businesses, as determined by the Board of
22.17Governors of the Federal Reserve System; and
22.18(2) "default" means the cancellation of the confession of judgment due to
22.19nonpayment of the current year tax or failure to make any installment payment required by
22.20this confessed judgment within 60 days from the date on which payment was due.
22.21(c) The interest rate established at the time judgment is confessed is fixed for the
22.22duration of the judgment. By October 15 of each year, the commissioner of revenue must
22.23determine the rate of interest as provided under paragraph (b) and, by November 1 of each
22.24year, must certify the rate to the county auditor.
22.25(d) (e) A qualified property owner eligible to enter into a second confession of
22.26judgment may do so at the interest rate provided in paragraph (b).
22.27(e) Repurchase agreements or contracts for repurchase for properties being
22.28repurchased under section
282.261 are not eligible to receive the interest rate under
22.29paragraph (b).
22.30(f) The offer must be substantially as follows:
22.31"To the court administrator of the district court of ........... county, I, .....................,
22.32am the owner of the following described parcel of real estate located in ....................
22.33county, Minnesota:
22.34.............................. Upon that real estate there are delinquent taxes for the year ........., and
22.35prior years, as follows: (here insert year of delinquency and the total amount of delinquent
22.36taxes, costs, interest, and penalty). By signing this document I offer to confess judgment
23.1in the sum of $...... and waive all irregularities in the tax proceedings affecting these
23.2taxes and any defense or objection which I may have to them, and direct judgment to be
23.3entered for the amount stated above, minus the sum of $............, to be paid with this
23.4document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and
23.5interest stated above. I agree to pay the balance of the judgment in nine or four equal,
23.6annual installments, with interest as provided in section279.03 , payable annually, on the
23.7installments remaining unpaid. I agree to pay the installments and interest on or before
23.8December 31 of each year following the year in which this judgment is confessed and
23.9current taxes each year before they become delinquent, or within 30 days after the entry of
23.10final judgment in proceedings to contest the taxes under chapter 278.
23.11Dated .............., ......."
23.12EFFECTIVE DATE.This section is effective for sales and repurchases occurring
23.13after January 1, 2017.
23.14 Sec. 23. Minnesota Statutes 2014, section 282.01, subdivision 4, is amended to read:
23.15 Subd. 4. Sale: method, requirements, effects. The sale authorized under
23.16subdivision 3 must be conducted by the county auditor at the county seat of the county in
23.17which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may
23.18be conducted in any county facility within the county. The sale must not be for less than
23.19the appraised value except as provided in subdivision 7a. The parcels must be sold for
23.20cash only, unless the county board of the county has adopted a resolution providing for
23.21their sale on terms, in which event the resolution controls with respect to the sale. When
23.22the sale is made on terms other than for cash only (1) a payment of at least ten percent
23.23of the purchase price must be made at the time of purchase, and the balance must be
23.24paid in no more than ten equal annual installments, or (2) the payments must be made
23.25in accordance with county board policy, but in no event may the board require more
23.26than 12 installments annually, and the contract term must not be for more than ten years.
23.27Standing timber or timber products must not be removed from these lands until an amount
23.28equal to the appraised value of all standing timber or timber products on the lands at the
23.29time of purchase has been paid by the purchaser. If a parcel of land bearing standing
23.30timber or timber products is sold at public auction for more than the appraised value, the
23.31amount bid in excess of the appraised value must be allocated between the land and the
23.32timber in proportion to their respective appraised values. In that case, standing timber or
23.33timber products must not be removed from the land until the amount of the excess bid
23.34allocated to timber or timber products has been paid in addition to the appraised value of
24.1the land. The purchaser is entitled to immediate possession, subject to the provisions of
24.2any existing valid lease made in behalf of the state.
24.3For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
24.4is subject to interest at the rate determined pursuant to section
549.09. The unpaid balance
24.5of the purchase pricefor sales occurring after December 31, 1990, is subject to interest
24.6at the ratedetermined provided in section
279.03, subdivision 1a 2, paragraph (c). The
24.7interest rate is subject to change each year on the unpaid balance in the manner provided
24.8for rate changes in section
549.09 or
279.03, subdivision 1a, whichever, is applicable.
24.9Interest on the unpaid contract balance on sales occurring before July 1, 1982, is payable
24.10at the rate applicable to the sale at the time that the sale occurred.
24.11EFFECTIVE DATE.This section is effective for sales occurring after January
24.121, 2017.
24.13 Sec. 24. Minnesota Statutes 2014, section 282.261, subdivision 2, is amended to read:
24.14 Subd. 2. Interest rate. The unpaid balance on any repurchase contract approved
24.15by the county board for property classified as 1a or 1b and used as the homestead of the
24.16owner at the time of forfeiture or at the time that the repurchase application is approved is
24.17subject to interest at the rate determined in section279.03, subdivision 1a 2. The interest
24.18rate is subject to change each year on the unpaid balance in the manner provided for rate
24.19changes in section
279.03, subdivision 1a. The unpaid balance on any other repurchase
24.20contract approved by the county board is subject to interest at the rate determined in
24.21section 279.03, subdivision 1a, which is subject to change each year in the manner
24.22provided for in section 279.03, subdivision 1a.
24.23EFFECTIVE DATE.This section is effective for repurchases occurring after
24.24January 1, 2017.
24.25 Sec. 25. Minnesota Statutes 2014, section 473H.09, is amended to read:
24.26473H.09 EARLY TERMINATION.
24.27 Subdivision 1. Public emergency. Termination of an agricultural preserve earlier
24.28than a date derived through application of section473H.08 may be permitted only in the
24.29event of a public emergency upon petition from the owner or authority to the governor.
24.30The determination of a public emergency shall be by the governor through executive order
24.31pursuant to sections4.035 and
12.01 to
12.46 . The executive order shall identify the
24.32preserve, the reasons requiring the action and the date of termination.
25.1 Subd. 2. Death of owner. (a) Within 180 days of the death of an owner, an owner's
25.2spouse, or other qualifying person, the surviving owner may elect to terminate the
25.3agricultural preserve and the covenant allowing the land to be enrolled as an agricultural
25.4preserve by notifying the authority on a form provided by the commissioner of agriculture.
25.5Termination of a covenant under this subdivision must be executed and acknowledged in
25.6the manner required by law to execute and acknowledge a deed.
25.7(b) For purposes of this subdivision, the following definitions apply:
25.8(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the
25.9decedent was the settlor or a beneficiary of, or member of an entity permitted to own
25.10agricultural land and engage in farming under section 500.24 that owned the agricultural
25.11preserve; and
25.12(2) "surviving owner" includes the executor of the estate of the decedent, the trustee
25.13for a trust that the decedent was the settlor or a beneficiary of, or an entity permitted to
25.14own farm land under section 500.24 of which the decedent was a partner, shareholder, or
25.15member.
25.16(c) When an agricultural preserve is terminated under this subdivision, the property
25.17is subject to additional taxes in an amount equal to 50 percent of the taxes actually
25.18levied against the property for the current taxes payable year. The additional taxes are
25.19extended against the property on the tax list for taxes payable in the current year. The
25.20additional taxes must be distributed among the jurisdictions levying taxes on the property
25.21in proportion to the current year's taxes.
25.22EFFECTIVE DATE.This section is effective July 1, 2016.
25.23 Sec. 26. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243,
25.24article 6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154,
25.25article 2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read:
25.26 Sec. 3. TAX; PAYMENT OF EXPENSES.
25.27 (a) The tax levied by the hospital district under Minnesota Statutes, section447.34 ,
25.28must not be levied at a rate that exceeds the amount authorized to be levied under that
25.29section. The proceeds of the tax may be used for all purposes of the hospital district,
25.30except as provided in paragraph (b).
25.31 (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by
25.32the Cook ambulance service and the Orr ambulance service for the purpose of:
25.33 (1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance
25.34service;
25.35 (2) attached and portable equipment for use in and for the ambulances; and
26.1 (3) parts and replacement parts for maintenance and repair of the ambulances, and
26.2administrative, operation, or salary expenses for the Cook ambulance service and the
26.3Orr ambulance service.
26.4The money may not be used for administrative, operation, or salary expenses.
26.5 (c) The part of the levy referred to in paragraph (b) must be administered by the
26.6Cook Hospital and passed on in equal amounts directly to the Cook area ambulance
26.7service board and the city of Orr to be used for the purposes in paragraph (b).
26.8EFFECTIVE DATE.This section is effective the day following final enactment.
26.9 Sec. 27. Laws 1996, chapter 471, article 3, section 51, is amended to read:
26.10 Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.
26.11Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the
26.12Carlton county board of commissioners may levy in and for the unorganized township of
26.13Sawyer an amount up to$1,500 $2,000 annually for recreational purposes, beginning with
26.14taxes payable in 1997 and ending with taxes payable in 2006.
26.15Subd. 2. Effective date. This section is effective June 1, 1996, without local
26.16approval.
26.17EFFECTIVE DATE.This section is effective the day after the Carlton County
26.18Board of Commissioners and its chief clerical officer comply with section 645.021,
26.19subdivisions 2 and 3, and applies to taxes payable in 2017.
26.20 Sec. 28. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by
26.21Laws 2013, chapter 143, article 4, section 36, is amended to read:
26.22 Subdivision 1. Agreement. The city of Cloquet and Perch Lake Township, by
26.23resolution of each of their governing bodies, may establish the Cloquet Area Fire and
26.24Ambulance Special Taxing District for the purpose of providing fire or ambulance
26.25services, or both, throughout the district. In this section, "municipality" means home rule
26.26charter and statutory cities, towns, and Indian tribes. The district may exercise all the
26.27powers relating to fire and ambulance services of the municipalities that receive fire or
26.28ambulance services, or both, from the district. Upon application, any other municipality
26.29may join the district with the agreement of the municipalities that comprise the district at
26.30the time of its application to join.
26.31EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
26.32the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
26.33governing body of each.
27.1 Sec. 29. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:
27.2 Subd. 2. Board. The Cloquet Area Fire and Ambulance Special Taxing District
27.3Board is governed by a board made up initially of one or more elected officials of the
27.4governing body of each participating municipality in the proportions set out in the
27.5establishing resolution, subject to change as provided in the district's charter, if any, or
27.6in the district's bylaws. Each municipality's representatives serve at the pleasure of that
27.7municipality's governing body.
27.8EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
27.9the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
27.10governing body of each.
27.11 Sec. 30. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by
27.12Laws 2013, chapter 143, article 4, section 37, is amended to read:
27.13 Subd. 3. Tax. (a) The district board may impose a property tax on taxable property
27.14as provided in this subdivision to pay the costs of providing fire or ambulance services,
27.15or both, throughout the district. The board shall annually determine the total amount of
27.16the levy that is attributable to the cost of providing fire services and the cost of providing
27.17ambulance services within the primary service area. For those municipalities that only
27.18receive ambulance services, the costs for the provision of ambulance services shall
27.19be levied against taxable property within those municipalities at a rate necessary not to
27.20exceed 0.019 percent of the estimated market value. For those municipalities that receive
27.21both fire and ambulance services, the tax shall be imposed at a rate that does not exceed
27.220.2835 percent of estimated market value.
27.23(b) When a member municipality opts to receive fire service from the district or
27.24an additional municipality becomes a member of the district, the cost of providing fire
27.25services to that community shall be determined by the board and added to the maximum
27.26levy amount.
27.27(c) Each county auditor of a county that contains a municipality subject to the tax
27.28under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing
27.29District. The district may also impose other fees or charges as allowed by law for the
27.30provision of fire and ambulance services.
27.31EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
27.32the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
27.33governing body of each.
28.1 Sec. 31. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:
28.2 Subd. 4. Public indebtedness. (a) The district may incur debt in the manner
28.3provided for a municipality by Minnesota Statutes, chapter 475, and may issue certificates
28.4of indebtedness or capital notes in the manner provided for a city by Minnesota Statutes,
28.5section 412.301, when necessary to accomplish its duties, except that the district may
28.6not incur debt or issue obligations until first obtaining the approval of a majority of the
28.7electors voting on the question of issuing the obligation. The debt service for debt used to
28.8finance capital costs for ambulance service shall be levied against taxable property within
28.9the municipalities in the primary service area. The debt service for debt used to finance
28.10capital costs for fire service shall be levied against taxable property within municipalities
28.11receiving fire services. The district board shall pledge its full faith and credit and taxing
28.12power without limitation as to rate or amount for the payment of the district's debt.
28.13(b) For purposes of this subdivision, "municipality" has the definition given in
28.14Minnesota Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph
28.15(c).
28.16EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
28.17the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
28.18governing body of each.
28.19 Sec. 32. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:
28.20 Subd. 5. Withdrawal. Notice of intent to withdraw from participation in the district
28.21may be given only in the month of January, with a minimum of twelve months notice of
28.22intent to withdraw. Withdrawal becomes effective for taxes levied pursuant to subdivision
28.233 in the year when the notice is given. A property tax on taxable property located in a
28.24withdrawing municipality that has been levied by the district pursuant to subdivision 4
28.25remains in effect until the obligations outstanding on the date of withdrawal are satisfied,
28.26including any property tax levied in connection with refunding such obligations. The
28.27district and its members may also develop and agree upon other continuing obligations
28.28after withdrawal of a municipality.
28.29EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
28.30the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
28.31governing body of each.
28.32 Sec. 33. 2016 TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE
28.33WAIVER.
29.1If a city or town that conducts local board of appeal and equalization meetings
29.2certified by February 1, 2016, that it was in compliance with the requirements of
29.3Minnesota Statutes, section 274.014, subdivision 2, but no member of the local board
29.4who has attended an appeal and equalization course training within the preceding four
29.5years attended the local board's meeting for 2016, that local board shall have its powers
29.6reinstated for the 2017 assessment by resolution of the governing body of the city or
29.7town, and by certifying it is in compliance with the requirements of Minnesota Statutes,
29.8section 274.014, subdivision 2. The resolution and certification must be provided to
29.9the county assessor by February 1, 2017.
29.10EFFECTIVE DATE.This section is effective the day following final enactment.
29.11 Sec. 34. TOWN OF TOFTE; MUNICIPAL HOUSING.
29.12(a) Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988,
29.13chapter 719, article 19, section 27, the town of Tofte may own and operate within its
29.14boundary up to 12 units of housing for individuals over 55 years of age or families with
29.15one member of the household that is over 55 years of age, or projects that provide housing
29.16for individuals or families with incomes not greater than 120 percent of the median
29.17family income, as estimated by the United States Department of Housing and Urban
29.18Development for the nonmetropolitan county in which the town of Tofte is located.
29.19(b) The town of Tofte shall have the powers of a city under Minnesota Statutes,
29.20chapter 462C, and the powers of an authority under Minnesota Statutes, sections 469.001
29.21to 469.047, with respect to this section. Upon the approval of the town board, the town of
29.22Tofte may levy the tax described in Minnesota Statutes, section 469.033, subdivision 6.
29.23(c) Nothing in this section shall limit the power of the Cook County/Grand Marais
29.24Joint Economic Development Authority to exercise jurisdiction within the town of Tofte.
29.25The authority to undertake new projects under this section shall expire on June 30, 2017.
29.26EFFECTIVE DATE.This section is effective the day after compliance by
29.27the governing body of the town of Tofte with Minnesota Statutes, section 645.021,
29.28subdivisions 2 and 3.
29.29 Sec. 35. SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL
29.30ASSESSMENT.
29.31Any real or personal property acquired, owned, leased, controlled, used, or occupied
29.32by the city of St. Paul for the primary purpose of providing a stadium for a Major League
29.33Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for
30.1public, governmental, and municipal purposes, and is exempt from ad valorem taxation by
30.2the state or any political subdivision of the state, provided that the properties are subject to
30.3special assessments levied by a political subdivision for a local improvement in amounts
30.4proportionate to and not exceeding the special benefit received by the properties from the
30.5improvement. In determining the special benefit received by the properties, no possible
30.6use of any of the properties in any manner different from their intended use for providing a
30.7Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota
30.8Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a
30.9lease or use agreement between the city and another person for uses related to the purposes
30.10of the operation of the stadium and related parking facilities is exempt from taxation
30.11regardless of the length of the lease or use agreement. This section, insofar as it provides
30.12an exemption or special treatment, does not apply to any real property that is leased for
30.13residential, business, or commercial development or other purposes different from those
30.14necessary to the provision and operation of the stadium.
30.15EFFECTIVE DATE.This section is effective upon approval by the St. Paul City
30.16Council and compliance with Minnesota Statutes, section 645.021.
30.17 Sec. 36. OPTIONAL CANCELLATION OF TAX FORFEITURE FOR CERTAIN
30.18BUILDINGS; ST. LOUIS COUNTY.
30.19 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
30.20have the meanings given.
30.21(b) "Building PIN" means a parcel identification number that is assigned to a
30.22building and does not include the land upon which the building is located; and
30.23(c) "Land PIN" means a parcel identification number that is assigned to land upon
30.24which a building associated with a building PIN is located.
30.25 Subd. 2. Optional cancellation of tax forfeiture for buildings with building PINs.
30.26Notwithstanding any law to the contrary, if any building associated with a building PIN
30.27and located in St. Louis County forfeits or has forfeited to the state of Minnesota before,
30.28on, or after the date of enactment of this section because of nonpayment of delinquent
30.29property taxes, special assessments, penalties, interest, or costs, the county auditor of St.
30.30Louis County may, with approval from the county board and the commissioner of revenue:
30.31(1) cancel the certificate of forfeiture and set aside the forfeiture without reinstating
30.32the unpaid property taxes, special assessments, penalties, interest, or costs; and
31.1(2) combine the building PIN with its associated land PIN. When this occurs, the
31.2land PIN is the only surviving parcel identification number, and includes both the building
31.3and the land upon which the building is located.
31.4 Subd. 3. Cancellation of tax forfeiture; taxation through date of cancellation.
31.5Notwithstanding any law to the contrary, if the county auditor of St. Louis County cancels
31.6a certificate of forfeiture and sets aside a forfeiture in accordance with subdivision 2,
31.7the affected building is not subject to taxation from the date of forfeiture through the
31.8date of cancellation.
31.9 Subd. 4. Appropriation. $1,000,000 in fiscal year 2017 only is appropriated from
31.10the general fund to the commissioner of revenue for a grant to St. Louis County that shall
31.11be paid on July 1, 2016. The county may only use the grant to remove any building,
31.12upon the request of the landowner, after the county has complied with the provisions of
31.13subdivision 2.
31.14EFFECTIVE DATE.This section is effective the day following final enactment.
31.15 Sec. 37. LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.
31.16 Subdivision 1. Abatements authorized. (a) Notwithstanding Minnesota Statutes,
31.17section 375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may
31.18grant an abatement of local property taxes for taxes payable in 2016 provided that:
31.19(1) the property is classified as 1c, 3a (excluding utility real and personal property),
31.204c(1), 4c(10), or 4c(11);
31.21(2) on or before February 1, 2017, the taxpayer submits a written application to the
31.22county assessor in the county in which abatement is sought; and
31.23(3) the taxpayer meets qualification requirements established in subdivision 3.
31.24 Subd. 2. Appeals. An appeal may not be taken to the Tax Court from any order
31.25of the county board made pursuant to the exercise of the discretionary authority granted
31.26in this section.
31.27 Subd. 3. Qualification requirements. To qualify for abatements under this section,
31.28a taxpayer must:
31.29(1) be located within one of the following municipalities surrounding Lake Mille
31.30Lacs:
31.31(i) in Crow Wing County, the city of Garrison, township of Garrison, or township
31.32of Roosevelt;
32.1(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township
32.2of Malmo, or township of Lakeside; or
32.3(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township
32.4of East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
32.5(2) document a reduction in gross receipts of five percent or greater between two
32.6successive calendar years beginning in 2010 or later; and
32.7(3) be a business in one of the following industries, as defined within the North
32.8American Industry Classification System: accommodation, restaurants, bars, amusement
32.9and recreation, food and beverages retail, sporting goods, miscellaneous retail, general
32.10retail, museums, historical sites, health and personal care, gas station, general merchandise,
32.11business and professional membership, movies, or nonstore retailer, as determined by the
32.12county in consultation with the commissioner of employment and economic development.
32.13 Subd. 4. State general levy in relief area. The counties of Aitkin, Crow Wing, and
32.14Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a
32.15(excluding utility real and personal property), or 4c(1) that is located in the area described
32.16by subdivision 3, clause (1), for taxes payable in 2016. No refund may be issued to a
32.17taxpayer whose property taxes are delinquent.
32.18 Subd. 5. Certification and transfer of funds. (a) By April 1, 2017, a county
32.19granting a refund as required under subdivision 4 must certify the total amount of state
32.20general tax refunded to Mille Lacs County and the commissioner of revenue. By May 1,
32.212017, Mille Lacs County must transfer an amount equal to the amount certified under this
32.22paragraph to the county making the certification.
32.23(b) By April 1, 2017, a county that has received an application for an abatement
32.24authorized under subdivision 1 must certify to Mille Lacs County the total amount of
32.25abatements for which applications have been received and approved. By May 1, 2017,
32.26Mille Lacs County must transfer an amount equal to the amount certified under this
32.27paragraph to the county making the certification. If the amount appropriated under
32.28subdivision 6, minus the amount transferred under paragraph (a), is not sufficient to make
32.29the transfer required under this paragraph, Mille Lacs County must reduce the amount
32.30transferred to each county by a uniform percentage. By June 30, 2017, the county must
32.31issue refunds of local property tax amounts to qualified properties, in proportion to the
32.32amount received from Mille Lacs County. No refund may be issued to a taxpayer whose
32.33property taxes are delinquent.
32.34(c) By August 1, 2017, Mille Lacs County must calculate the amount transferred
32.35under paragraphs (a) and (b), and subtract that amount from $1,400,000 to obtain the
33.1ongoing economic relief distribution amount, if any. This amount must be transferred to
33.2the counties of Aitkin, Crow Wing, and Mille Lacs in proportion to the amounts certified
33.3by each county under paragraphs (a) and (b). A county receiving a transfer under this
33.4paragraph must use the funds received to provide abatements to business properties under
33.5economic hardship for taxes payable in 2017, and each year thereafter until a county's
33.6share of the ongoing economic relief distribution amount is exhausted.
33.7 Subd. 6. Commissioner of revenue; appropriation. $1,400,000 in fiscal year 2017
33.8is appropriated from the general fund to the commissioner of revenue for transfer to
33.9Mille Lacs County to make the transfers required under subdivision 5. This is a onetime
33.10appropriation.
33.11 Subd. 7. Report to legislature. The commissioner of revenue must make a
33.12written report to the chairs and ranking minority members of the legislative committees
33.13with jurisdiction over taxes stating the amount of abatements and refunds given under
33.14this section by taxing jurisdictions by February 1, 2018. The counties must provide the
33.15commissioner with the information necessary to make the report.
33.16EFFECTIVE DATE.This section is effective the day following final enactment.
33.17 Sec. 38. REPEALER.
33.18Minnesota Statutes 2014, section 272.02, subdivision 23, is repealed.
33.19EFFECTIVE DATE.This section is effective for taxes payable in 2017 and
33.20thereafter.
33.23 Section 1. [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.
33.24 Subdivision 1. Eligibility. All class 2a, 2b, and 2c property under section 273.13,
33.25subdivision 23, other than property consisting of the house, garage, and immediately
33.26surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
33.27under this section.
33.28 Subd. 2. Credit amount. For each qualifying property, the school building bond
33.29agricultural credit is equal to 40 percent of the property's eligible net tax capacity
33.30multiplied by the school debt tax rate determined under section 275.08, subdivision 1b.
33.31 Subd. 3. Credit reimbursements. The county auditor shall determine the tax
33.32reductions allowed under this section within the county for each taxes payable year and
34.1shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
34.2lists submitted under section 275.29. Any prior year adjustments shall also be certified on
34.3the abstracts of tax lists. The commissioner shall review the certifications for accuracy,
34.4and may make such changes as are deemed necessary, or return the certification to the
34.5county auditor for correction. The credit under this section must be used to reduce the
34.6school district net tax capacity-based property tax as provided in section273.1393 .
34.7 Subd. 4. Payment. The commissioner of revenue shall certify the total of the tax
34.8reductions granted under this section for each taxes payable year within each school
34.9district to the commissioner of education, who shall pay the reimbursement amounts to
34.10each school district as provided in section273.1392 .
34.11 Subd. 5. Appropriation. An amount sufficient to make the payments required by this
34.12section is annually appropriated from the general fund to the commissioner of education.
34.13EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
34.14 Sec. 2. Minnesota Statutes 2014, section 273.1392, is amended to read:
34.15273.1392 PAYMENT; SCHOOL DISTRICTS.
34.16The amounts of bovine tuberculosis credit reimbursements under section273.113 ;
34.17conservation tax credits under section273.119 ; disaster or emergency reimbursement
34.18under sections273.1231 to
273.1235 ; homestead and agricultural credits under section
34.19sections273.1384 and 273.1387; aids and credits under section
273.1398 ; enterprise zone
34.20property credit payments under section469.171 ; and metropolitan agricultural preserve
34.21reduction under section473H.10 for school districts, shall be certified to the Department
34.22of Education by the Department of Revenue. The amounts so certified shall be paid
34.23according to section127A.45 , subdivisions 9 and 13.
34.24EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
34.25 Sec. 3. Minnesota Statutes 2014, section 273.1393, is amended to read:
34.26273.1393 COMPUTATION OF NET PROPERTY TAXES.
34.27 Notwithstanding any other provisions to the contrary, "net" property taxes are
34.28determined by subtracting the credits in the order listed from the gross tax:
34.29 (1) disaster credit as provided in sections273.1231 to
273.1235 ;
34.30 (2) powerline credit as provided in section273.42 ;
34.31 (3) agricultural preserves credit as provided in section473H.10 ;
34.32 (4) enterprise zone credit as provided in section469.171 ;
34.33 (5) disparity reduction credit;
35.1 (6) conservation tax credit as provided in section273.119 ;
35.2 (7) the school bond credit, as provided in section 273.1387;
35.3 (8) agricultural credit as provided in section273.1384 ;
35.4(8) (9) taconite homestead credit as provided in section
273.135 ;
35.5(9) (10) supplemental homestead credit as provided in section
273.1391 ; and
35.6(10) (11) the bovine tuberculosis zone credit, as provided in section
273.113 .
35.7 The combination of all property tax credits must not exceed the gross tax amount.
35.8EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
35.9 Sec. 4. Minnesota Statutes 2014, section 275.065, subdivision 3, is amended to read:
35.10 Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare
35.11and the county treasurer shall deliver after November 10 and on or before November 24
35.12each year, by first class mail to each taxpayer at the address listed on the county's current
35.13year's assessment roll, a notice of proposed property taxes. Upon written request by
35.14the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
35.15instead of on paper or by ordinary mail.
35.16 (b) The commissioner of revenue shall prescribe the form of the notice.
35.17 (c) The notice must inform taxpayers that it contains the amount of property taxes
35.18each taxing authority proposes to collect for taxes payable the following year. In the case of
35.19a town, or in the case of the state general tax, the final tax amount will be its proposed tax.
35.20The notice must clearly state for each city that has a population over 500, county, school
35.21district, regional library authority established under section134.201 , and metropolitan
35.22taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing
35.23authority in which the budget and levy will be discussed and public input allowed, prior to
35.24the final budget and levy determination. The taxing authorities must provide the county
35.25auditor with the information to be included in the notice on or before the time it certifies
35.26its proposed levy under subdivision 1. The public must be allowed to speak at that
35.27meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
35.28must provide a telephone number for the taxing authority that taxpayers may call if they
35.29have questions related to the notice and an address where comments will be received by
35.30mail, except that no notice required under this section shall be interpreted as requiring the
35.31printing of a personal telephone number or address as the contact information for a taxing
35.32authority. If a taxing authority does not maintain public offices where telephone calls can
35.33be received by the authority, the authority may inform the county of the lack of a public
35.34telephone number and the county shall not list a telephone number for that taxing authority.
35.35 (d) The notice must state for each parcel:
36.1 (1) the market value of the property as determined under section273.11 , and used
36.2for computing property taxes payable in the following year and for taxes payable in the
36.3current year as each appears in the records of the county assessor on November 1 of the
36.4current year; and, in the case of residential property, whether the property is classified as
36.5homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
36.6which the market values apply and that the values are final values;
36.7 (2) the items listed below, shown separately by county, city or town, and state
36.8general tax, agricultural homestead credit under section273.1384 , school building bond
36.9agricultural credit under section 273.1387, voter approved school levy, other local school
36.10levy, and the sum of the special taxing districts, and as a total of all taxing authorities:
36.11 (i) the actual tax for taxes payable in the current year; and
36.12 (ii) the proposed tax amount.
36.13 If the county levy under clause (2) includes an amount for a lake improvement
36.14district as defined under sections103B.501 to
103B.581 , the amount attributable for that
36.15purpose must be separately stated from the remaining county levy amount.
36.16 In the case of a town or the state general tax, the final tax shall also be its proposed
36.17tax unless the town changes its levy at a special town meeting under section365.52 . If a
36.18school district has certified under section126C.17, subdivision 9 , that a referendum will
36.19be held in the school district at the November general election, the county auditor must
36.20note next to the school district's proposed amount that a referendum is pending and that, if
36.21approved by the voters, the tax amount may be higher than shown on the notice. In the
36.22case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
36.23listed separately from the remaining amount of the city's levy. In the case of the city of
36.24St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
36.25remaining amount of the city's levy. In the case of Ramsey County, any amount levied
36.26under section134.07 may be listed separately from the remaining amount of the county's
36.27levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
36.28under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
36.29proposed tax levy on the tax capacity subject to the areawide tax must each be stated
36.30separately and not included in the sum of the special taxing districts; and
36.31 (3) the increase or decrease between the total taxes payable in the current year and
36.32the total proposed taxes, expressed as a percentage.
36.33 For purposes of this section, the amount of the tax on homesteads qualifying under
36.34the senior citizens' property tax deferral program under chapter 290B is the total amount
36.35of property tax before subtraction of the deferred property tax amount.
37.1 (e) The notice must clearly state that the proposed or final taxes do not include
37.2the following:
37.3 (1) special assessments;
37.4 (2) levies approved by the voters after the date the proposed taxes are certified,
37.5including bond referenda and school district levy referenda;
37.6 (3) a levy limit increase approved by the voters by the first Tuesday after the first
37.7Monday in November of the levy year as provided under section275.73 ;
37.8 (4) amounts necessary to pay cleanup or other costs due to a natural disaster
37.9occurring after the date the proposed taxes are certified;
37.10 (5) amounts necessary to pay tort judgments against the taxing authority that become
37.11final after the date the proposed taxes are certified; and
37.12 (6) the contamination tax imposed on properties which received market value
37.13reductions for contamination.
37.14 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or
37.15the county treasurer to deliver the notice as required in this section does not invalidate the
37.16proposed or final tax levy or the taxes payable pursuant to the tax levy.
37.17 (g) If the notice the taxpayer receives under this section lists the property as
37.18nonhomestead, and satisfactory documentation is provided to the county assessor by the
37.19applicable deadline, and the property qualifies for the homestead classification in that
37.20assessment year, the assessor shall reclassify the property to homestead for taxes payable
37.21in the following year.
37.22 (h) In the case of class 4 residential property used as a residence for lease or rental
37.23periods of 30 days or more, the taxpayer must either:
37.24 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
37.25renter, or lessee; or
37.26 (2) post a copy of the notice in a conspicuous place on the premises of the property.
37.27 The notice must be mailed or posted by the taxpayer by November 27 or within
37.28three days of receipt of the notice, whichever is later. A taxpayer may notify the county
37.29treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
37.30which the notice must be mailed in order to fulfill the requirements of this paragraph.
37.31 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
37.32districts" means the following taxing districts in the seven-county metropolitan area that
37.33levy a property tax for any of the specified purposes listed below:
37.34 (1) Metropolitan Council under section473.132 ,
473.167 ,
473.249 ,
473.325 ,
37.35473.446
,
473.521 ,
473.547 , or
473.834 ;
38.1 (2) Metropolitan Airports Commission under section473.667 ,
473.671 , or
473.672 ;
38.2and
38.3 (3) Metropolitan Mosquito Control Commission under section473.711 .
38.4 For purposes of this section, any levies made by the regional rail authorities in the
38.5county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
38.6398A shall be included with the appropriate county's levy.
38.7 (j) The governing body of a county, city, or school district may, with the consent
38.8of the county board, include supplemental information with the statement of proposed
38.9property taxes about the impact of state aid increases or decreases on property tax
38.10increases or decreases and on the level of services provided in the affected jurisdiction.
38.11This supplemental information may include information for the following year, the current
38.12year, and for as many consecutive preceding years as deemed appropriate by the governing
38.13body of the county, city, or school district. It may include only information regarding:
38.14 (1) the impact of inflation as measured by the implicit price deflator for state and
38.15local government purchases;
38.16 (2) population growth and decline;
38.17 (3) state or federal government action; and
38.18 (4) other financial factors that affect the level of property taxation and local services
38.19that the governing body of the county, city, or school district may deem appropriate to
38.20include.
38.21 The information may be presented using tables, written narrative, and graphic
38.22representations and may contain instruction toward further sources of information or
38.23opportunity for comment.
38.24EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
38.25 Sec. 5. Minnesota Statutes 2014, section 275.07, subdivision 2, is amended to read:
38.26 Subd. 2. School districtin more than one county levies; special requirements. (a)
38.27In school districts lying in more than one county, the clerk shall certify the tax levied to the
38.28auditor of the county in which the administrative offices of the school district are located.
38.29(b) The district must identify the portion of the school district levy that is levied for
38.30debt service at the time the levy is certified under this section. For the purposes of this
38.31paragraph, "levied for debt service" means levies authorized under sections 123B.53,
38.32123B.535, and 123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt
38.33excess levy reductions under section 475.61, subdivision 4, excluding debt service
38.34amounts necessary for repayment of other postemployment benefits under section 475.52,
38.35subdivision 6.
39.1EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
39.2 Sec. 6. Minnesota Statutes 2014, section 275.08, subdivision 1b, is amended to read:
39.3 Subd. 1b. Computation of tax rates. (a) The amounts certified to be levied against
39.4net tax capacity under section275.07 by an individual local government unit shall be
39.5divided by the total net tax capacity of all taxable properties within the local government
39.6unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate,
39.7multiplied by each property's net tax capacity shall be each property's net tax capacity tax
39.8for that local government unit before reduction by any credits.
39.9(b) The auditor must also determine the school debt tax rate for each school district
39.10equal to (1) the school debt service levy certified under section 275.07, subdivision 2,
39.11divided by (2) the total net tax capacity of all taxable property within the district.
39.12(c) Any amount certified to the county auditor to be levied against market value shall
39.13be divided by the total referendum market value of all taxable properties within the taxing
39.14district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by
39.15each property's referendum market value shall be each property's new referendum tax
39.16before reduction by any credits. For the purposes of this subdivision, "referendum market
39.17value" means the market value as defined in section126C.01, subdivision 3 .
39.18EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
39.19 Sec. 7. Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read:
39.20 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing
39.21of the tax statements. The commissioner of revenue shall prescribe the form of the property
39.22tax statement and its contents. The tax statement must not state or imply that property tax
39.23credits are paid by the state of Minnesota. The statement must contain a tabulated statement
39.24of the dollar amount due to each taxing authority and the amount of the state tax from the
39.25parcel of real property for which a particular tax statement is prepared. The dollar amounts
39.26attributable to the county, the state tax, the voter approved school tax, the other local school
39.27tax, the township or municipality, and the total of the metropolitan special taxing districts
39.28as defined in section275.065, subdivision 3 , paragraph (i), must be separately stated.
39.29The amounts due all other special taxing districts, if any, may be aggregated except that
39.30any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
39.31Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
39.32line directly under the appropriate county's levy. If the county levy under this paragraph
39.33includes an amount for a lake improvement district as defined under sections103B.501
39.34to
103B.581 , the amount attributable for that purpose must be separately stated from the
40.1remaining county levy amount. In the case of Ramsey County, if the county levy under this
40.2paragraph includes an amount for public library service under section134.07 , the amount
40.3attributable for that purpose may be separated from the remaining county levy amount.
40.4The amount of the tax on homesteads qualifying under the senior citizens' property tax
40.5deferral program under chapter 290B is the total amount of property tax before subtraction
40.6of the deferred property tax amount. The amount of the tax on contamination value
40.7imposed under sections270.91 to
270.98 , if any, must also be separately stated. The dollar
40.8amounts, including the dollar amount of any special assessments, may be rounded to the
40.9nearest even whole dollar. For purposes of this section whole odd-numbered dollars may
40.10be adjusted to the next higher even-numbered dollar. The amount of market value excluded
40.11under section273.11, subdivision 16 , if any, must also be listed on the tax statement.
40.12 (b) The property tax statements for manufactured homes and sectional structures
40.13taxed as personal property shall contain the same information that is required on the
40.14tax statements for real property.
40.15 (c) Real and personal property tax statements must contain the following information
40.16in the order given in this paragraph. The information must contain the current year tax
40.17information in the right column with the corresponding information for the previous year
40.18in a column on the left:
40.19 (1) the property's estimated market value under section273.11, subdivision 1 ;
40.20 (2) the property's homestead market value exclusion under section273.13 ,
40.21subdivision 35;
40.22 (3) the property's taxable market value under section272.03, subdivision 15 ;
40.23 (4) the property's gross tax, before credits;
40.24 (5) forhomestead agricultural properties, the credit credits under section sections
40.25273.1384 and 273.1387;
40.26 (6) any credits received under sections273.119 ;
273.1234 or
273.1235 ;
273.135 ;
40.27273.1391
;
273.1398, subdivision 4 ;
469.171 ; and
473H.10 , except that the amount of
40.28credit received under section273.135 must be separately stated and identified as "taconite
40.29tax relief"; and
40.30 (7) the net tax payable in the manner required in paragraph (a).
40.31 (d) If the county uses envelopes for mailing property tax statements and if the county
40.32agrees, a taxing district may include a notice with the property tax statement notifying
40.33taxpayers when the taxing district will begin its budget deliberations for the current
40.34year, and encouraging taxpayers to attend the hearings. If the county allows notices to
40.35be included in the envelope containing the property tax statement, and if more than
40.36one taxing district relative to a given property decides to include a notice with the tax
41.1statement, the county treasurer or auditor must coordinate the process and may combine
41.2the information on a single announcement.
41.3EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
41.4 Sec. 8. [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR
41.5CERTAIN OUT-OF-HOME PLACEMENT.
41.6 Subdivision 1. Definition. When used in this section, "out-of-home placement"
41.7means 24-hour substitute care for an Indian child as defined by section 260C.007,
41.8subdivision 21, placed under the Indian Child Welfare Act (ICWA) and chapter 260C,
41.9away from the child's parent or guardian and for whom the county social services agency
41.10or county correctional agency has been assigned responsibility for the child's placement
41.11and care, which includes placement in foster care under section 260C.007, subdivision
41.1218, and a correctional facility pursuant to a court order.
41.13 Subd. 2. Determination of nonfederal share of costs. (a) By January 1, 2017, each
41.14county shall report the following information to the commissioners of human services and
41.15corrections: (1) the separate amounts paid out of its social service agency and its corrections
41.16budget for out-of-home placement of children under the ICWA in calendar years 2013,
41.172014, and 2015; and (2) the number of case days associated with the expenditures from
41.18each budget. By March 15, 2017, the commissioner of human services, in consultation with
41.19the commissioner of corrections, shall certify to the commissioner of revenue and to the
41.20legislative committees responsible for local government aids and out-of-home placement
41.21funding, whether the data reported under this subdivision accurately reflects total
41.22expenditures by counties for out-of-home placement costs of children under the ICWA.
41.23(b) By January 1, 2019, and each January 1 thereafter, each county shall report to the
41.24commissioners of human services and corrections the separate amounts paid out of its
41.25social service agency and its corrections budget for out-of-home placement of children
41.26under the ICWA in the calendar years two years before the current calendar year along
41.27with the number of case days associated with the expenditures from each budget.
41.28(c) Until the commissioner of human services develops another mechanism for
41.29collecting and verifying data on out-of-home placements of children under the ICWA, and
41.30the legislature authorizes the use of that data, the data collected under this subdivision
41.31must be used to calculate payments under subdivision 3. The commissioner of human
41.32services shall certify the nonfederal out-of-home placement costs for the three prior
41.33calendar years for each county to the commissioner of revenue by June 1 of the year
41.34prior to the aid payment.
42.1 Subd. 3. Aid payments to counties. For aids payable in calendar year 2018 and
42.2thereafter, the commissioner of revenue shall reimburse each county for 100 percent of
42.3the nonfederal share of the cost of out-of-home placement of children under the ICWA
42.4provided the commissioner of human services, in consultation with the commissioner
42.5of corrections, certifies to the commissioner of revenue that accurate data is available
42.6to make the aid determination under this section. The amount of reimbursement is the
42.7county's average nonfederal share of the cost for out-of-home placement of children
42.8under the ICWA for the most recent three calendar years for which data is available.
42.9The commissioner shall pay the aid under the schedule used for local government aid
42.10payments under section 477A.015.
42.11 Subd. 4. Aid payments to tribes. (a) By January 1, 2017, and each year
42.12thereafter, each tribe must certify to the commissioner of revenue the amount of federal
42.13reimbursement received by the tribe for out-of-home placement of children under the
42.14ICWA for the immediately preceding three calendar years. The commissioner of revenue
42.15shall prescribe the format of the certification. For purposes of this section, "tribe" has the
42.16meaning provided in section 260.755, subdivision 12.
42.17(b) The amount of reimbursement to the tribe shall be the greater of: (1) five
42.18percent of the average reimbursement amount received from the federal government for
42.19out-of-home placement costs for the most recent three calendar years; or (2) $200,000.
42.20The commissioner shall pay the aid under this section under the schedule used for local
42.21government aid payments under section 477A.015.
42.22 Subd. 5. Appropriation. An amount sufficient to pay aid under this section is
42.23annually appropriated to the commissioner of revenue from the general fund.
42.24EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.
42.25 Sec. 9. Minnesota Statutes 2015 Supplement, section 477A.015, is amended to read:
42.26477A.015 PAYMENT DATES.
42.27(a) The commissioner of revenue shall make the payments of local government aid
42.28to affected taxing authorities in two installments on July 20 and December 26 annually.
42.29(b) Notwithstanding paragraph (a), for aids payable in 2017 only, the commissioner
42.30of revenue shall make payments of the aid payable under section 477A.013, subdivision
42.319, in three installments as follows: (1) 6.5 percent of the aid shall be paid on June 15,
42.322017; (2) 43.5 percent of the aid shall be paid on July 20, 2017; and (3) 50 percent of the
42.33aid shall be paid on December 26, 2017.
43.1(c) When the commissioner of public safety determines that a local government has
43.2suffered financial hardship due to a natural disaster, the commissioner of public safety
43.3shall notify the commissioner of revenue, who shall make payments of aids under sections
43.4477A.011
to
477A.014 , which are otherwise due on December 26, as soon as is practical
43.5after the determination is made but not before July 20.
43.6(d) The commissioner may pay all or part of the payments of aids under sections
43.7477A.011
to
477A.014 , which are due on December 26 at any time after August 15 if a local
43.8government requests such payment as being necessary for meeting its cash flow needs.
43.9EFFECTIVE DATE.This section is effective beginning with aids payable in 2017.
43.10 Sec. 10. Minnesota Statutes 2014, section 477A.017, subdivision 2, is amended to read:
43.11 Subd. 2. State auditor's duties. The state auditor shall prescribe uniform financial
43.12accounting and reporting standards in conformity with national standards to be applicable
43.13to cities and towns of more than 2,500 population and uniform reporting standards to be
43.14applicable to cities and towns of less than 2,500 population.
43.15EFFECTIVE DATE.This section applies to reporting of financial information for
43.16calendar year 2016 and thereafter.
43.17 Sec. 11. Minnesota Statutes 2014, section 477A.017, subdivision 3, is amended to read:
43.18 Subd. 3. Conformity. Other law to the contrary notwithstanding, in order to receive
43.19distributions under sections477A.011 to
477A.03 , counties and, cities, and towns must
43.20conform to the standards set in subdivision 2 in making all financial reports required to be
43.21made to the state auditorafter June 30, 1984.
43.22EFFECTIVE DATE.This section applies to reporting of financial information for
43.23aids payable in 2017 and thereafter.
43.24 Sec. 12. Minnesota Statutes 2015 Supplement, section 477A.03, subdivision 2a,
43.25is amended to read:
43.26 Subd. 2a. Cities. The total aid paid under section477A.013, subdivision 9 , is
43.27$516,898,012 for aids payable in 2015. For aids payable in 2016and thereafter, the total
43.28aid paid under section477A.013, subdivision 9, is $519,398,012. For aids payable in 2017
43.29and thereafter, the total aid paid under section 477A.013, subdivision 9, is $539,398,012.
43.30EFFECTIVE DATE.This section is effective for aids payable in calendar year
43.312017 and thereafter.
44.1 Sec. 13. Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read:
44.2 Subd. 2b. Counties. (a) For aids payable in 2014and thereafter through 2016, the
44.3total aid payable under section477A.0124, subdivision 3 , is $100,795,000. For aids
44.4payable in 2017 through 2024, the total aid payable under section 477A.0124, subdivision
44.53, is $108,795,000, of which $3,000,000 shall be allocated as required under Laws 2014,
44.6chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, the total aid
44.7payable under section 477A.0124, subdivision 3, is $105,795,000. Each calendar year,
44.8$500,000 of this appropriation shall be retained by the commissioner of revenue to
44.9make reimbursements to the commissioner of management and budget for payments
44.10made under section611.27 . The reimbursements shall be to defray the additional costs
44.11associated with court-ordered counsel under section611.27 . Any retained amounts not
44.12used for reimbursement in a year shall be included in the next distribution of county
44.13need aid that is certified to the county auditors for the purpose of property tax reduction
44.14for the next taxes payable year.
44.15 (b) For aids payable in2014 and thereafter 2016, the total aid under section
44.16477A.0124, subdivision 4
, is $104,909,575. For aids payable in 2017 and thereafter,
44.17the total aid payable under section 477A.0124, subdivision 4, is $109,909,575. The
44.18commissioner of revenue shall transfer to the commissioner of management and budget
44.19$207,000 annually for the cost of preparation of local impact notes as required by section
44.203.987
, and other local government activities. The commissioner of revenue shall transfer
44.21to the commissioner of education $7,000 annually for the cost of preparation of local
44.22impact notes for school districts as required by section3.987 . The commissioner of
44.23revenue shall deduct the amounts transferred under this paragraph from the appropriation
44.24under this paragraph. The amounts transferred are appropriated to the commissioner of
44.25management and budget and the commissioner of education respectively.
44.26EFFECTIVE DATE.This section is effective for aids payable in 2017 and thereafter.
44.27 Sec. 14. [477A.09] MAXIMUM EFFORT LOAN AID.
44.28For fiscal years 2018 through 2022, each school district with a maximum effort loan
44.29under sections 126C.61 to 126C.72 outstanding as of June 30, 2016, is eligible for an aid
44.30payment equal to one-fifth of the amount of interest that was paid on the loan between
44.31December 1, 1997, and June 30, 2016. Aid payments under this section must be used to
44.32reduce property taxes levied on net tax capacity within the district. Aid under this section
44.33must be paid in fiscal years 2018 through 2022, in the manner provided under section
44.34127A.45, subdivisions 9 and 13. An amount sufficient to make aid payments under this
44.35section is annually appropriated from the general fund to the commissioner of education.
45.1EFFECTIVE DATE.This section is effective for fiscal years 2018 and thereafter.
45.2 Sec. 15. [477A.21] RIPARIAN PROTECTION AID.
45.3 Subdivision 1. Definitions. (a) When used in this section, the following terms have
45.4the meanings given them in this subdivision.
45.5(b) "Public water basins" has the meaning provided in section 103G.005, subdivision
45.615, clauses (1) to (8) and (11).
45.7(c) "Public watercourses" has the meaning provided in section 103G.005,
45.8subdivision 15, clauses (9) and (10).
45.9 Subd. 2. Certification. The Board of Water and Soil Resources must certify to the
45.10commissioner of revenue by July 1 of each year which counties and watershed districts
45.11have affirmed their jurisdiction under section 103F.48, subdivision 7, paragraph (b), and
45.12the proportion of each county's land area that is contained in each watershed district
45.13within the county. On or before July 1 of each year, the commissioner of natural resources
45.14shall certify to the commissioner of revenue the statewide and countywide total of miles of
45.15shoreline of public waters basins, the number of centerline miles of public watercourses,
45.16and the miles of public drainage system ditches.
45.17 Subd. 3. Distribution. (a) A county that is certified under subdivision 2 or that
45.18portion of a county containing a watershed district certified under subdivision 2 is eligible
45.19to receive aid under this section to enforce and implement the riparian protection and water
45.20quality practices under section 103F.48. The commissioner shall calculate a preliminary
45.21aid for all counties that shall equal: (1) each county's share of the total number of acres
45.22in the state classified as class 2a under section 273.13, subdivision 23, divided by two;
45.23plus (2) each county's share of the number of miles of shoreline of public water basins,
45.24each county's share of the number of centerline miles of public watercourses, and each
45.25county's share of the number of miles of public drainage system ditches established under
45.26chapter 103E, divided by two; multiplied by (3) $10,000,000.
45.27(b) Aid to a county shall not be greater than $200,000 or less than $45,000. If the
45.28sum of the preliminary aids payable to counties under paragraph (a) is greater or less than
45.29the appropriation under subdivision 5, the commissioner of revenue shall calculate the
45.30percentage adjustment necessary so that the total of the aid under paragraph (a) equals the
45.31total amount available for aid under subdivision 5.
45.32(c) If only a portion of a county is certified as eligible to receive aid under subdivision
45.332, the aid otherwise payable to that county under this section shall be multiplied by a
45.34fraction, the numerator of which is the area of the certified watershed district contained
45.35within the county and the denominator of which is the total area of the county.
46.1(d) Any aid that would otherwise be paid to a county or portion of a county that is
46.2not certified under subdivision 2 shall be paid to the Board of Water and Soil Resources
46.3for the purpose of enforcing and implementing the riparian protection and water quality
46.4practices under section 103F.48.
46.5 Subd. 4. Payments. The commissioner of revenue must compute the amount of
46.6riparian protection aid payable to each eligible county and to the Board of Water and Soil
46.7Resources under this section. On or before August 1 of each year, the commissioner shall
46.8certify the amount to be paid to each county in the following year. The commissioner shall
46.9pay riparian protection aid to counties and the Board of Water and Soil Resources in the
46.10same manner and at the same time as aid payments under section 477A.015.
46.11 Subd. 5. Appropriation. $10,000,000 for aids payable in 2017 and each year
46.12thereafter is appropriated from the general fund to the commissioner of revenue to make
46.13the payments required under this section.
46.14EFFECTIVE DATE.This section is effective beginning with aids payable in 2017
46.15and thereafter.
46.16 Sec. 16. Laws 2001, First Special Session chapter 5, article 3, section 86, is amended
46.17to read:
46.18 Sec. 86. RED RIVER WATERSHED MANAGEMENT BOARD; PAYMENT
46.19IN LIEU OF TAXES.
46.20 (a) The Red River watershed management board may spend money from its general
46.21fund to compensate counties and townships for lost tax revenue from land that becomes
46.22tax exempt after it is acquired by the board or a member watershed district for flood
46.23damage reduction project. The amount that may be paid under this section to a county
46.24or township must not exceed the tax that was payable to that taxing jurisdiction on the
46.25land in the last taxes payable year before the land became exempt due to the acquisition,
46.26not to exceed$4 $5.133 per acre, multiplied by 20. This total amount may be paid in one
46.27payment, or in equal annual installments over a period that does not exceed 20 years. A
46.28member watershed district of the Red River management board may spend money from its
46.29construction fund for the purposes described in this section.
46.30 (b) For the purposes of this section, "Red River watershed management board"
46.31refers to the board established by Laws 1976, chapter 162, section 1, as amended by Laws
46.321982, chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special
46.33Session chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws
46.341998, chapter 389, article 3, section 29.
47.1EFFECTIVE DATE.This section is effective for aids payable in calendar year
47.22016 and thereafter.
47.3 Sec. 17. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
47.4Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of
47.5Oslo shall receive the portion of its aid payment for calendar year 2013 under Minnesota
47.6Statutes, section 477A.013, that was withheld under Minnesota Statutes, section
47.7477A.017, subdivision 3, provided that the state auditor certifies to the commissioner
47.8of revenue that it received audited financial statements from the city for calendar year
47.92012 by December 31, 2013. The commissioner of revenue shall make a payment of
47.10$37,473.50 with the first payment of aids under Minnesota Statutes, section 477A.015.
47.11$37,473.50 is appropriated from the general fund to the commissioner of revenue in fiscal
47.12year 2017 to make this payment.
47.13EFFECTIVE DATE.This section is effective the day following final enactment.
47.14 Sec. 18. 2014 AID PENALTY FORGIVENESS.
47.15(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities
47.16of Dundee, Jeffers, and Woodstock shall receive all of its calendar year 2014 aid payment
47.17that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided
47.18that the state auditor certifies to the commissioner of revenue that the city complied with
47.19all reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for
47.20calendar years 2013 and 2014 by June 1, 2015.
47.21(b) The commissioner of revenue shall make payment to each city no later than June
47.2230, 2016. Up to $101,570 is appropriated from the general fund to the commissioner of
47.23revenue in fiscal year 2017 to make the payments under this section.
47.24EFFECTIVE DATE.This section is effective the day following final enactment.
47.25 Sec. 19. BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
47.26In the first aid payable year in which a city that incorporated on October 13, 2015,
47.27qualifies for aid under Minnesota Statutes, section 477A.013, subdivision 8, the city's
47.28formula aid in the previous year shall be deemed to equal $115 multiplied by its population.
47.29EFFECTIVE DATE.This section is effective for aids payable in 2017 and thereafter.
47.30 Sec. 20. REPEALER.
47.31Minnesota Statutes 2014, section 477A.20, is repealed.
48.1EFFECTIVE DATE.This section is effective the day following final enactment.
48.4 Section 1. Minnesota Statutes 2014, section 136A.129, subdivision 3, is amended to
48.5read:
48.6 Subd. 3. Program components. (a) An intern must be an eligible student who has
48.7been admitted to a major program that is related to the intern experience as determined
48.8by the eligible institution.
48.9(b) To participate in the program, an eligible institution must:
48.10(1) enter into written agreements with eligible employers to provide internships that
48.11are at least eight weeks long and located in greater Minnesota; and
48.12(2) provide academic credit for the successful completion of the internship or ensure
48.13that it fulfills requirements necessary to complete a vocational technical education program.
48.14(c) To participate in the program, an eligible employer must enter into a written
48.15agreement with an eligible institution specifying that the intern:
48.16(1)would not have been hired without the tax credit described in subdivision 4;
48.17(2) did not work for the employer in the same or a similar job prior to entering
48.18the agreement;
48.19(3) (2) does not replace an existing employee;
48.20(4) (3) has not previously participated in the program;
48.21(5) (4) will be employed at a location in greater Minnesota;
48.22(6) (5) will be paid at least minimum wage for a minimum of 16 hours per week
48.23for a period of at least eight weeks; and
48.24(7) (6) will be supervised and evaluated by the employer.
48.25(d) The written agreement between the eligible institution and the eligible employer
48.26must certify a credit amount to the employer, not to exceed $2,000 per intern. The total
48.27dollar amount of credits that an eligible institution certifies to eligible employers in a
48.28calendar year may not exceed the amount of its allocation under subdivision 4.
48.29(e) Participating eligible institutions and eligible employers must report annually to
48.30the office. The report must include at least the following:
48.31(1) the number of interns hired;
48.32(2) the number of hours and weeks worked by interns; and
48.33(3) the compensation paid to interns.
48.34(f) An internship required to complete an academic program does not qualify for the
48.35greater Minnesota internship program under this section.
49.1EFFECTIVE DATE.This section is effective for taxable years beginning after
49.2December 31, 2015.
49.3 Sec. 2. Minnesota Statutes 2015 Supplement, section 289A.02, subdivision 7, is
49.4amended to read:
49.5 Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal
49.6Revenue Code" means the Internal Revenue Code of 1986, as amended through December
49.731,2014 2015.
49.8EFFECTIVE DATE.This section is effective the day following final enactment.
49.9 Sec. 3. Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read:
49.10 Subd. 7. Resident. (a) The term "resident" means any individual domiciled
49.11in Minnesota, except that an individual is not a "resident" for the period of time that
49.12the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal
49.13Revenue Code, if the qualified individual notifies the county within three months of
49.14moving out of the country that homestead status be revoked for the Minnesota residence
49.15of the qualified individual, and the property is not classified as a homestead while the
49.16individual remains a qualified individual.
49.17(b) "Resident" also means any individual domiciled outside the state who maintains
49.18a place of abode in the state and spends in the aggregate more than one-half of the tax
49.19year in Minnesota, unless:
49.20(1) the individual or the spouse of the individual is in the armed forces of the United
49.21States; or
49.22(2) the individual is covered under the reciprocity provisions in section290.081 .
49.23For purposes of this subdivision, presence within the state for any part of a calendar
49.24day constitutes a day spent in the state. A day does not qualify as a Minnesota day if
49.25the taxpayer traveled from a place outside of Minnesota primarily for and essential to
49.26obtaining medical care, as defined in Internal Revenue Code, section 213(d)(1)(A), in
49.27Minnesota for the taxpayer, spouse, or a dependent of the taxpayer and the travel expense
49.28is allowed under Internal Revenue Code, section 213(d)(1)(B), and is claimed by the
49.29taxpayer as a deductible expense. Individuals shall keep adequate records to substantiate
49.30the days spent outside the state.
49.31The term "abode" means a dwelling maintained by an individual, whether or not
49.32owned by the individual and whether or not occupied by the individual, and includes a
49.33dwelling place owned or leased by the individual's spouse.
50.1(c) In determining where an individual is domiciled, neither the commissioner nor
50.2any court shall consider:
50.3(1) charitable contributions made byan the individual within or without the state in
50.4determining if the individual is domiciled in Minnesota.;
50.5(2) the location of the individual's attorney, certified public accountant, or financial
50.6adviser; or
50.7(3) the place of business of a financial institution at which the individual applies for
50.8any new type of credit or at which the individual opens or maintains any type of account.
50.9(d) For purposes of this subdivision, the following terms have the meanings given
50.10them:
50.11(1) "financial adviser" means:
50.12(i) an individual or business entity engaged in business as a certified financial
50.13planner, registered investment adviser, licensed insurance producer or agent, or a
50.14registered securities broker-dealer representative; or
50.15(ii) a financial institution providing services related to trust or estate administration,
50.16investment management, or financial planning; and
50.17(2) "financial institution" means a financial institution as defined in section 47.015,
50.18subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer
50.19under the Securities and Exchange Act of 1934.
50.20EFFECTIVE DATE.This section is effective for taxable years beginning after
50.21December 31, 2015, except the amendment to paragraph (b) is effective for taxable years
50.22beginning after December 31, 2016.
50.23 Sec. 4. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 19, is
50.24amended to read:
50.25 Subd. 19. Net income. The term "net income" means the federal taxable income,
50.26as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
50.27date named in this subdivision, incorporating the federal effective dates of changes to the
50.28Internal Revenue Code and any elections made by the taxpayer in accordance with the
50.29Internal Revenue Code in determining federal taxable income for federal income tax
50.30purposes, and with the modifications provided in subdivisions 19a to 19f.
50.31 In the case of a regulated investment company or a fund thereof, as defined in section
50.32851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
50.33company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
50.34except that:
51.1 (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
51.2Revenue Code does not apply;
51.3 (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
51.4Revenue Code must be applied by allowing a deduction for capital gain dividends and
51.5exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
51.6Revenue Code; and
51.7 (3) the deduction for dividends paid must also be applied in the amount of any
51.8undistributed capital gains which the regulated investment company elects to have treated
51.9as provided in section 852(b)(3)(D) of the Internal Revenue Code.
51.10 The net income of a real estate investment trust as defined and limited by section
51.11856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
51.12taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
51.13 The net income of a designated settlement fund as defined in section 468B(d) of
51.14the Internal Revenue Code means the gross income as defined in section 468B(b) of the
51.15Internal Revenue Code.
51.16 The Internal Revenue Code of 1986, as amended through December 31,2014 2015,
51.17shall be in effect for taxable years beginning after December 31, 1996.
51.18 Except as otherwise provided, references to the Internal Revenue Code in
51.19subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
51.20the applicable year.
51.21EFFECTIVE DATE.This section is effective the day following final enactment,
51.22except the changes incorporated by federal changes are effective retroactively at the same
51.23time as the changes were effective for federal purposes.
51.24 Sec. 5. Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read:
51.25 Subd. 19a. Additions to federal taxable income. For individuals, estates, and
51.26trusts, there shall be added to federal taxable income:
51.27 (1)(i) interest income on obligations of any state other than Minnesota or a political
51.28or governmental subdivision, municipality, or governmental agency or instrumentality
51.29of any state other than Minnesota exempt from federal income taxes under the Internal
51.30Revenue Code or any other federal statute; and
51.31 (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
51.32Code, except:
51.33(A) the portion of the exempt-interest dividends exempt from state taxation under
51.34the laws of the United States; and
52.1(B) the portion of the exempt-interest dividends derived from interest income
52.2on obligations of the state of Minnesota or its political or governmental subdivisions,
52.3municipalities, governmental agencies or instrumentalities, but only if the portion of the
52.4exempt-interest dividends from such Minnesota sources paid to all shareholders represents
52.595 percent or more of the exempt-interest dividends, including any dividends exempt
52.6under subitem (A), that are paid by the regulated investment company as defined in section
52.7851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
52.8defined in section 851(g) of the Internal Revenue Code, making the payment; and
52.9 (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
52.10government described in section 7871(c) of the Internal Revenue Code shall be treated as
52.11interest income on obligations of the state in which the tribe is located;
52.12 (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or
52.13accrued within the taxable year under this chapter and the amount of taxes based on net
52.14income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or
52.15to any province or territory of Canada, to the extent allowed as a deduction under section
52.1663(d) of the Internal Revenue Code, but the addition may not be more than the amount
52.17by which the state itemized deduction exceeds the amount of the standard deduction as
52.18defined in section 63(c) of the Internal Revenue Code, minus any addition that would have
52.19been required under clause (17) if the taxpayer had claimed the standard deduction. For
52.20the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are
52.21the last itemized deductions disallowed under clause (15);
52.22 (3) the capital gain amount of a lump-sum distribution to which the special tax under
52.23section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
52.24 (4) the amount of income taxes paid or accrued within the taxable year under this
52.25chapter and taxes based on net income paid to any other state or any province or territory
52.26of Canada, to the extent allowed as a deduction in determining federal adjusted gross
52.27income. For the purpose of this paragraph, income taxes do not include the taxes imposed
52.28by sections290.0922, subdivision 1 , paragraph (b),
290.9727 ,
290.9728 , and
290.9729 ;
52.29 (5) the amount of expense, interest, or taxes disallowed pursuant to section290.10
52.30other than expenses or interest used in computing net interest income for the subtraction
52.31allowed under subdivision 19b, clause (1);
52.32 (6) the amount of a partner's pro rata share of net income which does not flow
52.33through to the partner because the partnership elected to pay the tax on the income under
52.34section 6242(a)(2) of the Internal Revenue Code;
52.35 (7) 80 percent of the depreciation deduction allowed under section 168(k) of the
52.36Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
53.1in the taxable year generates a deduction for depreciation under section 168(k) and the
53.2activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
53.3the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
53.4limited to excess of the depreciation claimed by the activity under section 168(k) over the
53.5amount of the loss from the activity that is not allowed in the taxable year. In succeeding
53.6taxable years when the losses not allowed in the taxable year are allowed, the depreciation
53.7under section 168(k) is allowed;
53.8 (8) 80 percent of the amount by which the deduction allowed by section 179 of the
53.9Internal Revenue Code exceeds the deduction allowableby under the dollar limits of
53.10section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;
53.11 (9) to the extent deducted in computing federal taxable income, the amount of the
53.12deduction allowable under section 199 of the Internal Revenue Code;
53.13 (10) the amount of expenses disallowed under section 290.10, subdivision 2;
53.14 (11) for taxable years beginning before January 1, 2010, the amount deducted for
53.15qualified tuition and related expenses under section 222 of the Internal Revenue Code, to
53.16the extent deducted from gross income;
53.17 (12) for taxable years beginning before January 1, 2010, the amount deducted for
53.18certain expenses of elementary and secondary school teachers under section 62(a)(2)(D)
53.19of the Internal Revenue Code, to the extent deducted from gross income;
53.20(13) discharge of indebtedness income resulting from reacquisition of business
53.21indebtedness and deferred under section 108(i) of the Internal Revenue Code;
53.22(14) changes to federal taxable income attributable to a net operating loss that the
53.23taxpayer elected to carry back for more than two years for federal purposes but for which
53.24the losses can be carried back for only two years under section290.095, subdivision
53.2511 , paragraph (c);
53.26(15) the amount of disallowed itemized deductions, but the amount of disallowed
53.27itemized deductions plus the addition required under clause (2) may not be more than the
53.28amount by which the itemized deductions as allowed under section 63(d) of the Internal
53.29Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of
53.30the Internal Revenue Code, and reduced by any addition that would have been required
53.31under clause (17) if the taxpayer had claimed the standard deduction:
53.32(i) the amount of disallowed itemized deductions is equal to the lesser of:
53.33(A) three percent of the excess of the taxpayer's federal adjusted gross income
53.34over the applicable amount; or
53.35(B) 80 percent of the amount of the itemized deductions otherwise allowable to the
53.36taxpayer under the Internal Revenue Code for the taxable year;
54.1(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a
54.2married individual filing a separate return. Each dollar amount shall be increased by
54.3an amount equal to:
54.4(A) such dollar amount, multiplied by
54.5(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
54.6Revenue Code for the calendar year in which the taxable year begins, by substituting
54.7"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;
54.8(iii) the term "itemized deductions" does not include:
54.9(A) the deduction for medical expenses under section 213 of the Internal Revenue
54.10Code;
54.11(B) any deduction for investment interest as defined in section 163(d) of the Internal
54.12Revenue Code; and
54.13(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or
54.14theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue
54.15Code or for losses described in section 165(d) of the Internal Revenue Code;
54.16(16) the amount of disallowed personal exemptions for taxpayers with federal
54.17adjusted gross income over the threshold amount:
54.18(i) the disallowed personal exemption amount is equal to the number of personal
54.19exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied
54.20by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the
54.21Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal
54.22Revenue Code, and by the applicable percentage;
54.23(ii) "applicable percentage" means two percentage points for each $2,500 (or
54.24fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
54.25year exceeds the threshold amount. In the case of a married individual filing a separate
54.26return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In
54.27no event shall the applicable percentage exceed 100 percent;
54.28(iii) the term "threshold amount" means:
54.29(A) $150,000 in the case of a joint return or a surviving spouse;
54.30(B) $125,000 in the case of a head of a household;
54.31(C) $100,000 in the case of an individual who is not married and who is not a
54.32surviving spouse or head of a household; and
54.33(D) $75,000 in the case of a married individual filing a separate return; and
54.34(iv) the thresholds shall be increased by an amount equal to:
54.35(A) such dollar amount, multiplied by
55.1(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
55.2Revenue Code for the calendar year in which the taxable year begins, by substituting
55.3"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and
55.4(17) to the extent deducted in the computation of federal taxable income, for taxable
55.5years beginning after December 31, 2010, and before January 1, 2014, the difference
55.6between the standard deduction allowed under section 63(c) of the Internal Revenue Code
55.7and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue
55.8Code as amended through December 1, 2010.
55.9EFFECTIVE DATE.This section is effective the day following final enactment,
55.10except the changes incorporated by federal changes are effective retroactively at the same
55.11time as the changes were effective for federal purposes.
55.12 Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:
55.13 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
55.14and trusts, there shall be subtracted from federal taxable income:
55.15 (1) net interest income on obligations of any authority, commission, or
55.16instrumentality of the United States to the extent includable in taxable income for federal
55.17income tax purposes but exempt from state income tax under the laws of the United States;
55.18 (2) if included in federal taxable income, the amount of any overpayment of income
55.19tax to Minnesota or to any other state, for any previous taxable year, whether the amount
55.20is received as a refund or as a credit to another taxable year's income tax liability;
55.21 (3) the amount paid to others, less the amount used to claim the credit allowed under
55.22section290.0674 , not to exceed $1,625 for each qualifying child in grades kindergarten
55.23to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
55.24transportation of each qualifying child in attending an elementary or secondary school
55.25situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
55.26resident of this state may legally fulfill the state's compulsory attendance laws, which
55.27is not operated for profit, and which adheres to the provisions of the Civil Rights Act
55.28of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
55.29tuition as defined in section290.0674, subdivision 1 , clause (1). As used in this clause,
55.30"textbooks" includes books and other instructional materials and equipment purchased
55.31or leased for use in elementary and secondary schools in teaching only those subjects
55.32legally and commonly taught in public elementary and secondary schools in this state.
55.33Equipment expenses qualifying for deduction includes expenses as defined and limited in
55.34section290.0674, subdivision 1 , clause (3). "Textbooks" does not include instructional
55.35books and materials used in the teaching of religious tenets, doctrines, or worship, the
56.1purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
56.2or materials for, or transportation to, extracurricular activities including sporting events,
56.3musical or dramatic events, speech activities, driver's education, or similar programs. No
56.4deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
56.5the qualifying child's vehicle to provide such transportation for a qualifying child. For
56.6purposes of the subtraction provided by this clause, "qualifying child" has the meaning
56.7given in section 32(c)(3) of the Internal Revenue Code;
56.8 (4) income as provided under section290.0802 ;
56.9 (5) to the extent included in federal adjusted gross income, income realized on
56.10disposition of property exempt from tax under section290.491 ;
56.11 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
56.12of the Internal Revenue Code in determining federal taxable income by an individual
56.13who does not itemize deductions for federal income tax purposes for the taxable year, an
56.14amount equal to 50 percent of the excess of charitable contributions over $500 allowable
56.15as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
56.16under the provisions of Public Law 109-1 and Public Law 111-126;
56.17 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
56.18qualify for a credit under section290.06, subdivision 22 , an amount equal to the carryover
56.19of subnational foreign taxes for the taxable year, but not to exceed the total subnational
56.20foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
56.21"federal foreign tax credit" means the credit allowed under section 27 of the Internal
56.22Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
56.23under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
56.24the extent they exceed the federal foreign tax credit;
56.25 (8) in each of the five tax years immediately following the tax year in which an
56.26addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a
56.27shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
56.28delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
56.29of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
56.30clause (12), in the case of a shareholder of an S corporation, minus the positive value of
56.31any net operating loss under section 172 of the Internal Revenue Code generated for the
56.32tax year of the addition. The resulting delayed depreciation cannot be less than zero;
56.33 (9) job opportunity building zone income as provided under section469.316 ;
56.34 (10) to the extent included in federal taxable income, the amount of compensation
56.35paid to members of the Minnesota National Guard or other reserve components of the
56.36United States military for active service, including compensation for services performed
57.1under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
57.2service" means (i) state active service as defined in section190.05, subdivision 5a , clause
57.3(1); or (ii) federally funded state active service as defined in section190.05, subdivision
57.45b , and "active service" includes service performed in accordance with section
190.08,
57.5subdivision 3 ;
57.6 (11) to the extent included in federal taxable income, the amount of compensation
57.7paid to Minnesota residents who are members of the armed forces of the United States
57.8or United Nations for active duty performed under United States Code, title 10; or the
57.9authority of the United Nations;
57.10 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
57.11qualified donor's donation, while living, of one or more of the qualified donor's organs
57.12to another person for human organ transplantation. For purposes of this clause, "organ"
57.13means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
57.14"human organ transplantation" means the medical procedure by which transfer of a human
57.15organ is made from the body of one person to the body of another person; "qualified
57.16expenses" means unreimbursed expenses for both the individual and the qualified donor
57.17for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
57.18may be subtracted under this clause only once; and "qualified donor" means the individual
57.19or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
57.20individual may claim the subtraction in this clause for each instance of organ donation for
57.21transplantation during the taxable year in which the qualified expenses occur;
57.22 (13)in each of the five tax years immediately following the tax year in which an
57.23addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a
57.24shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
57.25addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the
57.26case of a shareholder of a corporation that is an S corporation, minus the positive value of
57.27any net operating loss under section 172 of the Internal Revenue Code generated for the
57.28tax year of the addition. If the net operating loss exceeds the addition for the tax year,
57.29a subtraction is not allowed under this clause the section 179 expensing subtraction as
57.30provided under section 290.0803, subdivision 3;
57.31 (14) to the extent included in the federal taxable income of a nonresident of
57.32Minnesota, compensation paid to a service member as defined in United States Code, title
57.3310, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
57.34Act, Public Law 108-189, section 101(2);
57.35 (15) to the extent included in federal taxable income, the amount of national service
57.36educational awards received from the National Service Trust under United States Code,
58.1title 42, sections 12601 to 12604, for service in an approved Americorps National Service
58.2program;
58.3(16) to the extent included in federal taxable income, discharge of indebtedness
58.4income resulting from reacquisition of business indebtedness included in federal taxable
58.5income under section 108(i) of the Internal Revenue Code. This subtraction applies only
58.6to the extent that the income was included in net income in a prior year as a result of the
58.7addition under subdivision 19a, clause (13);
58.8(17) the amount of the net operating loss allowed under section290.095, subdivision
58.911 , paragraph (c);
58.10(18) the amount of expenses not allowed for federal income tax purposes due
58.11to claiming the railroad track maintenance credit under section 45G(a) of the Internal
58.12Revenue Code;
58.13(19) the amount of the limitation on itemized deductions under section 68(b) of the
58.14Internal Revenue Code;
58.15(20) the amount of the phaseout of personal exemptions under section 151(d) of
58.16the Internal Revenue Code;and
58.17(21) to the extent included in federal taxable income, the amount of qualified
58.18transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
58.19Revenue Code. The subtraction is limited to the lesser of the amount of qualified
58.20transportation fringe benefits received in excess of the limitations under section
58.21132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
58.22maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
58.23Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
58.24of the Internal Revenue Code.
58.25(21) the amount equal to the contributions made during the taxable year to an
58.26account in a plan qualifying under section 529 of the Internal Revenue Code, reduced by
58.27any withdrawals from the account during the taxable year, not including amounts rolled
58.28over from other accounts in plans qualifying under section 529 of the Internal Revenue
58.29Code, and not to exceed $3,000 for married couples filing joint returns and $1,500 for
58.30all other filers. The subtraction must not include any amount used to claim the credit
58.31allowed under section 290.0684; and
58.32(22) to the extent included in federal taxable income, the discharge of indebtedness
58.33of the taxpayer if the indebtedness discharged is a qualified education loan, as defined in
58.34section 221 of the Internal Revenue Code, and the indebtedness was discharged following
58.35the taxpayer's completion of an income-driven repayment plan. For purposes of this
58.36clause, "income-driven repayment plan" means a payment plan established by the United
59.1States Department of Education that sets monthly student loan payments based on income
59.2and family size under United States Code, title 20, section 1087e, or similar authority and
59.3specifically includes, but is not limited to:
59.4(1) the income-based repayment plan under United State Code, title 20, section 1098e;
59.5(2) the income contingent repayment plan established under United State Code,
59.6title 20, section 1087e, subsection (e); and
59.7(3) the PAYE program or REPAYE program established by the Department of
59.8Education under administrative regulations.
59.9EFFECTIVE DATE.This section is effective for taxable years beginning after
59.10December 31, 2015.
59.11 Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:
59.12 Subd. 19c. Corporations; additions to federal taxable income. For corporations,
59.13there shall be added to federal taxable income:
59.14 (1) the amount of any deduction taken for federal income tax purposes for income,
59.15excise, or franchise taxes based on net income or related minimum taxes, including but not
59.16limited to the tax imposed under section290.0922 , paid by the corporation to Minnesota,
59.17another state, a political subdivision of another state, the District of Columbia, or any
59.18foreign country or possession of the United States;
59.19 (2) interest not subject to federal tax upon obligations of: the United States, its
59.20possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
59.21state, any of its political or governmental subdivisions, any of its municipalities, or any
59.22of its governmental agencies or instrumentalities; the District of Columbia; or Indian
59.23tribal governments;
59.24 (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
59.25Revenue Code;
59.26 (4) the amount of any net operating loss deduction taken for federal income tax
59.27purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
59.28deduction under section 810 of the Internal Revenue Code;
59.29 (5) the amount of any special deductions taken for federal income tax purposes
59.30under sections 241 to 247 and 965 of the Internal Revenue Code;
59.31 (6) losses from the business of mining, as defined in section290.05, subdivision 1 ,
59.32clause (a), that are not subject to Minnesota income tax;
59.33 (7) the amount of any capital losses deducted for federal income tax purposes under
59.34sections 1211 and 1212 of the Internal Revenue Code;
60.1 (8) the amount of percentage depletion deducted under sections 611 through 614 and
60.2291 of the Internal Revenue Code;
60.3 (9) for certified pollution control facilities placed in service in a taxable year
60.4beginning before December 31, 1986, and for which amortization deductions were elected
60.5under section 169 of the Internal Revenue Code of 1954, as amended through December
60.631, 1985, the amount of the amortization deduction allowed in computing federal taxable
60.7income for those facilities;
60.8 (10) the amount of a partner's pro rata share of net income which does not flow
60.9through to the partner because the partnership elected to pay the tax on the income under
60.10section 6242(a)(2) of the Internal Revenue Code;
60.11 (11) any increase in subpart F income, as defined in section 952(a) of the Internal
60.12Revenue Code, for the taxable year when subpart F income is calculated without regard to
60.13the provisions of Division C, title III, section 303(b) of Public Law 110-343;
60.14 (12) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
60.15and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
60.16has an activity that in the taxable year generates a deduction for depreciation under
60.17section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
60.18that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
60.19under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
60.20depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
60.21amount of the loss from the activity that is not allowed in the taxable year. In succeeding
60.22taxable years when the losses not allowed in the taxable year are allowed, the depreciation
60.23under section 168(k)(1)(A) and (k)(4)(A) is allowed;
60.24 (13) 80 percent of the amount by which the deduction allowed by section 179 of
60.25the Internal Revenue Code exceeds the deduction allowableby under the dollar limits of
60.26section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;
60.27 (14) to the extent deducted in computing federal taxable income, the amount of the
60.28deduction allowable under section 199 of the Internal Revenue Code;
60.29 (15) the amount of expenses disallowed under section290.10, subdivision 2 ; and
60.30(16) discharge of indebtedness income resulting from reacquisition of business
60.31indebtedness and deferred under section 108(i) of the Internal Revenue Code.
60.32EFFECTIVE DATE.This section is effective the day following final enactment,
60.33except the changes incorporated by federal changes are effective retroactively at the same
60.34time as the changes were effective for federal purposes.
60.35 Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:
61.1 Subd. 19d. Corporations; modifications decreasing federal taxable income. For
61.2corporations, there shall be subtracted from federal taxable income after the increases
61.3provided in subdivision 19c:
61.4 (1) the amount of foreign dividend gross-up added to gross income for federal
61.5income tax purposes under section 78 of the Internal Revenue Code;
61.6 (2) the amount of salary expense not allowed for federal income tax purposes due to
61.7claiming the work opportunity credit under section 51 of the Internal Revenue Code;
61.8 (3) any dividend (not including any distribution in liquidation) paid within the
61.9taxable year by a national or state bank to the United States, or to any instrumentality of
61.10the United States exempt from federal income taxes, on the preferred stock of the bank
61.11owned by the United States or the instrumentality;
61.12 (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the
61.13Internal Revenue Code, except that:
61.14 (i) for capital losses incurred in taxable years beginning after December 31, 1986,
61.15capital loss carrybacks shall not be allowed;
61.16 (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
61.17a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
61.18allowed;
61.19 (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
61.20capital loss carryback to each of the three taxable years preceding the loss year, subject to
61.21the provisions of Minnesota Statutes 1986, section290.16 , shall be allowed; and
61.22 (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
61.23a capital loss carryover to each of the five taxable years succeeding the loss year to the
61.24extent such loss was not used in a prior taxable year and subject to the provisions of
61.25Minnesota Statutes 1986, section290.16 , shall be allowed;
61.26 (5) an amount for interest and expenses relating to income not taxable for federal
61.27income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
61.28expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
61.29291 of the Internal Revenue Code in computing federal taxable income;
61.30 (6) in the case of mines, oil and gas wells, other natural deposits, and timber for
61.31which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a
61.32reasonable allowance for depletion based on actual cost. In the case of leases the deduction
61.33must be apportioned between the lessor and lessee in accordance with rules prescribed
61.34by the commissioner. In the case of property held in trust, the allowable deduction must
61.35be apportioned between the income beneficiaries and the trustee in accordance with the
62.1pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
62.2of the trust's income allocable to each;
62.3 (7) for certified pollution control facilities placed in service in a taxable year
62.4beginning before December 31, 1986, and for which amortization deductions were elected
62.5under section 169 of the Internal Revenue Code of 1954, as amended through December
62.631, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
62.71986, section290.09, subdivision 7 ;
62.8 (8) amounts included in federal taxable income that are due to refunds of income,
62.9excise, or franchise taxes based on net income or related minimum taxes paid by the
62.10corporation to Minnesota, another state, a political subdivision of another state, the
62.11District of Columbia, or a foreign country or possession of the United States to the extent
62.12that the taxes were added to federal taxable income under subdivision 19c, clause (1), in a
62.13prior taxable year;
62.14 (9) income or gains from the business of mining as defined in section290.05,
62.15subdivision 1 , clause (a), that are not subject to Minnesota franchise tax;
62.16 (10) the amount of disability access expenditures in the taxable year which are not
62.17allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
62.18 (11) the amount of qualified research expenses not allowed for federal income tax
62.19purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that
62.20the amount exceeds the amount of the credit allowed under section290.068 ;
62.21 (12) the amount of salary expenses not allowed for federal income tax purposes due to
62.22claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code;
62.23 (13) any decrease in subpart F income, as defined in section 952(a) of the Internal
62.24Revenue Code, for the taxable year when subpart F income is calculated without regard to
62.25the provisions of Division C, title III, section 303(b) of Public Law 110-343;
62.26 (14) in each of the five tax years immediately following the tax year in which an
62.27addition is required under subdivision 19c, clause (12), an amount equal to one-fifth of
62.28the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
62.29amount of the addition made by the taxpayer under subdivision 19c, clause (12). The
62.30resulting delayed depreciation cannot be less than zero;
62.31 (15)in each of the five tax years immediately following the tax year in which an
62.32addition is required under subdivision 19c, clause (13), an amount equal to one-fifth
62.33of the amount of the addition the section 179 expensing subtraction as provided under
62.34section 290.0803, subdivision 3;
62.35(16) to the extent included in federal taxable income, discharge of indebtedness
62.36income resulting from reacquisition of business indebtedness included in federal taxable
63.1income under section 108(i) of the Internal Revenue Code. This subtraction applies only
63.2to the extent that the income was included in net income in a prior year as a result of the
63.3addition under subdivision 19c, clause (16); and
63.4(17) the amount of expenses not allowed for federal income tax purposes due
63.5to claiming the railroad track maintenance credit under section 45G(a) of the Internal
63.6Revenue Code.
63.7EFFECTIVE DATE.This section is effective for taxable years beginning after
63.8December 31, 2015.
63.9 Sec. 9. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 31, is
63.10amended to read:
63.11 Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal
63.12Revenue Code" means the Internal Revenue Code of 1986, as amended through December
63.1331,2014 2015. Internal Revenue Code also includes any uncodified provision in federal
63.14law that relates to provisions of the Internal Revenue Code that are incorporated into
63.15Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
63.16subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
63.17amended through March 18, 2010.
63.18EFFECTIVE DATE.This section is effective the day following final enactment,
63.19except the changes incorporated by federal changes are effective retroactively at the same
63.20time as the changes were effective for federal purposes.
63.21 Sec. 10. Minnesota Statutes 2014, section 290.06, subdivision 22, is amended to read:
63.22 Subd. 22. Credit for taxes paid to another state. (a) A taxpayer who is liable for
63.23taxes based on net income to another state, as provided in paragraphs (b) through (f), upon
63.24income allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to
63.25another state if the tax is actually paid in the taxable year or a subsequent taxable year. A
63.26taxpayer who is a resident of this state pursuant to section290.01, subdivision 7 , paragraph
63.27(b), and who is subject to income tax as a resident in the state of the individual's domicile
63.28is not allowed this credit unless the state of domicile does not allow a similar credit.
63.29(b) For an individual, estate, or trust, the credit is determined by multiplying the tax
63.30payable under this chapter by the ratio derived by dividing the income subject to tax in the
63.31other state that is also subject to tax in Minnesota while a resident of Minnesota by the
63.32taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue
63.33Code, modified by the addition required by section290.01, subdivision 19a , clause (1),
64.1and the subtraction allowed by section290.01, subdivision 19b , clause (1), to the extent
64.2the income is allocated or assigned to Minnesota under sections290.081 and
290.17 .
64.3(c) If the taxpayer is an athletic team that apportions all of its income under section
64.4290.17, subdivision 5
, the credit is determined by multiplying the tax payable under this
64.5chapter by the ratio derived from dividing the total net income subject to tax in the other
64.6state by the taxpayer's Minnesota taxable income.
64.7(d) (1) The credit determined under paragraph (b) or (c) shall not exceed the amount
64.8of tax so paid to the other state on the gross income earned within the other state subject
64.9to tax under this chapter,.
64.10nor shall (2) The allowance of the credit does not reduce the taxes paid under this
64.11chapter to an amount less than what would be assessed ifsuch income amount was the
64.12gross income earned within the other state were excluded from taxable net income.
64.13(e) In the case of the tax assessed on a lump-sum distribution under section
64.14290.032
, the credit allowed under paragraph (a) is the tax assessed by the other state on
64.15the lump-sum distribution that is also subject to tax under section290.032 , and shall
64.16not exceed the tax assessed under section290.032 . To the extent the total lump-sum
64.17distribution defined in section290.032, subdivision 1 , includes lump-sum distributions
64.18received in prior years or is all or in part an annuity contract, the reduction to the tax on
64.19the lump-sum distribution allowed under section290.032, subdivision 2 , includes tax paid
64.20to another state that is properly apportioned to that distribution.
64.21(f) If a Minnesota resident reported an item of income to Minnesota and is assessed
64.22tax in such other state on that same income after the Minnesota statute of limitations
64.23has expired, the taxpayer shall receive a credit for that year under paragraph (a),
64.24notwithstanding any statute of limitations to the contrary. The claim for the credit must
64.25be submitted within one year from the date the taxes were paid to the other state. The
64.26taxpayer must submit sufficient proof to show entitlement to a credit.
64.27(g) For the purposes of this subdivision, a resident shareholder of a corporation
64.28treated as an "S" corporation under section290.9725 , must be considered to have paid
64.29a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share
64.30of any net income tax paid by the S corporation to another state. For the purposes of the
64.31preceding sentence, the term "net income tax" means any tax imposed on or measured by
64.32a corporation's net income.
64.33(h) For the purposes of this subdivision, a resident partner of an entity taxed as a
64.34partnership under the Internal Revenue Code must be considered to have paid a tax imposed
64.35on the partner in an amount equal to the partner's pro rata share of any net income tax paid
65.1by the partnership to another state. For purposes of the preceding sentence, the term "net
65.2income" tax means any tax imposed on or measured by a partnership's net income.
65.3(i) For the purposes of this subdivision, "another state":
65.4(1) includes:
65.5(i) the District of Columbia; and
65.6(ii) a province or territory of Canada; but
65.7(2) excludes Puerto Rico and the several territories organized by Congress.
65.8(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a
65.9state by state basis.
65.10(k) For a tax imposed by a province or territory of Canada, the tax for purposes of
65.11this subdivision is the excess of the tax over the amount of the foreign tax credit allowed
65.12under section 27 of the Internal Revenue Code. In determining the amount of the foreign
65.13tax credit allowed, the net income taxes imposed by Canada on the income are deducted
65.14first. Any remaining amount of the allowable foreign tax credit reduces the provincial or
65.15territorial tax that qualifies for the credit under this subdivision.
65.16(l) If the amount of the credit which a qualifying individual is eligible to receive
65.17under this section for tax paid to a qualifying state, disregarding the limitation in paragraph
65.18(d), clause (2), exceeds the tax due under this chapter, the commissioner shall refund the
65.19excess to the individual. An amount sufficient to pay the refunds required by this section
65.20is appropriated to the commissioner from the general fund.
65.21For purposes of this paragraph, "qualifying individual" means a Minnesota resident under
65.22section 290.01, subdivision 7, paragraph (a), who received compensation during the
65.23taxable year for the performance of personal or professional services within a qualifying
65.24state, and "qualifying state" means a state with which an agreement under section 290.081
65.25is not in effect for the taxable year but was in effect for a taxable year beginning before
65.26January 1, 2010.
65.27EFFECTIVE DATE.This section is effective for taxable years beginning after
65.28December 31, 2015.
65.29 Sec. 11. Minnesota Statutes 2014, section 290.067, subdivision 1, is amended to read:
65.30 Subdivision 1. Amount of credit. (a) A taxpayer may take as a credit against the
65.31tax due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
65.32dependent care credit for which the taxpayer is eligible pursuant to the provisions of
65.33section 21 of the Internal Revenue Codesubject to the limitations provided in subdivision
65.342 except that in determining whether the child qualified as a dependent, income received
65.35as a Minnesota family investment program grant or allowance to or on behalf of the child
66.1must not be taken into account in determining whether the child received more than half
66.2of the child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of
66.3the Internal Revenue Code do not apply.
66.4(b) If a child who has not attained the age of six years at the close of the taxable year
66.5is cared for at a licensed family day care home operated by the child's parent, the taxpayer
66.6is deemed to have paid employment-related expenses. If the child is 16 months old or
66.7younger at the close of the taxable year, the amount of expenses deemed to have been paid
66.8equals the maximum limit for one qualified individual under section 21(c) and (d) of the
66.9Internal Revenue Code. If the child is older than 16 months of age but has not attained the
66.10age of six years at the close of the taxable year, the amount of expenses deemed to have
66.11been paid equals the amount the licensee would charge for the care of a child of the same
66.12age for the same number of hours of care.
66.13(c) If a married couple:
66.14(1) has a child who has not attained the age of one year at the close of the taxable year;
66.15(2) files a joint tax return for the taxable year; and
66.16(3) does not participate in a dependent care assistance program as defined in section
66.17129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid
66.18for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of
66.19(i) the combined earned income of the couple or (ii) the amount of the maximum limit for
66.20one qualified individual under section 21(c) and (d) of the Internal Revenue Code will
66.21be deemed to be the employment related expense paid for that child. The earned income
66.22limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed
66.23amount. These deemed amounts apply regardless of whether any employment-related
66.24expenses have been paid.
66.25(d) If the taxpayer is not required and does not file a federal individual income tax
66.26return for the tax year, no credit is allowed for any amount paid to any person unless:
66.27(1) the name, address, and taxpayer identification number of the person are included
66.28on the return claiming the credit; or
66.29(2) if the person is an organization described in section 501(c)(3) of the Internal
66.30Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code,
66.31the name and address of the person are included on the return claiming the credit.
66.32In the case of a failure to provide the information required under the preceding sentence,
66.33the preceding sentence does not apply if it is shown that the taxpayer exercised due
66.34diligence in attempting to provide the information required.
66.35(e) In the case of a nonresident, part-year resident, or a person who has earned
66.36income not subject to tax under this chapter including earned income excluded pursuant to
67.1section290.01, subdivision 19b , clause (9), the credit determined under section 21 of the
67.2Internal Revenue Code must be allocated based on the ratio by which the earned income
67.3of the claimant and the claimant's spouse from Minnesota sources bears to the total earned
67.4income of the claimant and the claimant's spouse.
67.5(f) For residents of Minnesota, the subtractions for military pay under section
67.6290.01, subdivision 19b
, clauses (10) and (11), are not considered "earned income not
67.7subject to tax under this chapter."
67.8(g) For residents of Minnesota, the exclusion of combat pay under section 112 of
67.9the Internal Revenue Code is not considered "earned income not subject to tax under
67.10this chapter."
67.11(h) For taxpayers with federal adjusted gross income in excess of $38,000, the
67.12credit is equal to the lesser of the credit otherwise calculated under this subdivision or the
67.13amount equal to the credit otherwise calculated under this subdivision minus ten percent
67.14of federal adjusted gross income in excess of $38,000, but in no case is the credit less than
67.15zero. For purposes of this paragraph, "federal adjusted gross income" has the meaning
67.16given in section 62 of the Internal Revenue Code.
67.17EFFECTIVE DATE.This section is effective for taxable years beginning after
67.18December 31, 2015.
67.19 Sec. 12. Minnesota Statutes 2014, section 290.067, subdivision 2b, is amended to read:
67.20 Subd. 2b. Inflation adjustment. The commissioner shall adjust the dollar amount
67.21of the income threshold at which the maximum credit begins to be reduced under
67.22subdivision2 1 by the percentage determined pursuant to the provisions of section 1(f) of
67.23the Internal Revenue Code, except that in section 1(f)(3)(B) the word"1999" "2015" shall
67.24be substituted for the word "1992." For2001 2017, the commissioner shall then determine
67.25the percent change from the 12 months ending on August 31,1999 2015, to the 12 months
67.26ending on August 31,2000 2016, and in each subsequent year, from the 12 months ending
67.27on August 31,1999 2015, to the 12 months ending on August 31 of the year preceding the
67.28taxable year. The determination of the commissioner pursuant to this subdivision must not
67.29be considered a "rule" and is not subject to the Administrative Procedure Act contained in
67.30chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount.
67.31If the amount ends in $5, the amount is rounded up to the nearest $10 amount.
67.32EFFECTIVE DATE.This section is effective for taxable years beginning after
67.33December 31, 2016.
68.1 Sec. 13. Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1,
68.2is amended to read:
68.3 Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is
68.4allowed a credit against the tax imposed by this chapter equal to a percentage of earned
68.5income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of
68.6the Internal Revenue Code., except that:
68.7(i) the earned income and adjusted gross income limitations of section 32 of the
68.8Internal Revenue Code do not apply; and
68.9(ii) a taxpayer with no qualifying children who has attained the age of 21 but not
68.10attained age 65 before the close of the taxable year and is otherwise eligible for a credit
68.11under section 32 of the Internal Revenue Code may also receive a credit.
68.12(b) For individuals with no qualifying children, the credit equals2.10 three percent
68.13of the first$6,180 $6,500 of earned income. The credit is reduced by 2.01 three percent
68.14of earned income or adjusted gross income, whichever is greater, in excess of$8,130
68.15$12,000, but in no case is the credit less than zero.
68.16(c) For individuals with one qualifying child, the credit equals9.35 12.71 percent
68.17of the first$11,120 $8,350 of earned income. The credit is reduced by 6.02 5.2 percent
68.18of earned income or adjusted gross income, whichever is greater, in excess of$21,190
68.19$21,620, but in no case is the credit less than zero.
68.20(d) For individuals with two or more qualifying children, the credit equals11 14.94
68.21percent of the first$18,240 $13,700 of earned income. The credit is reduced by 10.82
68.229.2 percent of earned income or adjusted gross income, whichever is greater, in excess of
68.23$25,130 $25,640, but in no case is the credit less than zero.
68.24(e) For a part-year resident, the credit must be allocated based on the percentage
68.25calculated under section290.06, subdivision 2c , paragraph (e).
68.26(f) For a person who was a resident for the entire tax year and has earned income
68.27not subject to tax under this chapter, including income excluded under section290.01,
68.28subdivision 19b , clause (9), the credit must be allocated based on the ratio of federal
68.29adjusted gross income reduced by the earned income not subject to tax under this chapter
68.30over federal adjusted gross income. For purposes of this paragraph, the subtractions
68.31for military pay under section290.01, subdivision 19b , clauses (10) and (11), are not
68.32considered "earned income not subject to tax under this chapter."
68.33For the purposes of this paragraph, the exclusion of combat pay under section 112
68.34of the Internal Revenue Code is not considered "earned income not subject to tax under
68.35this chapter."
69.1(g) For tax years beginning afterDecember 31, 2007, and before December 31, 2010,
69.2and for tax years beginning after December 31, 2017, the $8,130 $12,000 in paragraph
69.3(b), the$21,190 $21,620 in paragraph (c), and the $25,130 $25,640 in paragraph (d),
69.4after being adjusted for inflation under subdivision 7, are each increased by $3,000 for
69.5married taxpayers filing joint returns. For tax years beginning after December 31,2008
69.62017, the commissioner shall annually adjust the $3,000 by the percentage determined
69.7pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
69.8section 1(f)(3)(B), the word "2007" shall be substituted for the word "1992." For2009
69.92018, the commissioner shall then determine the percent change from the 12 months
69.10ending on August 31, 2007, to the 12 months ending on August 31,2008 2017, and in
69.11each subsequent year, from the 12 months ending on August 31, 2007, to the 12 months
69.12ending on August 31 of the year preceding the taxable year. The earned income thresholds
69.13as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the
69.14amount is rounded up to the nearest $10. The determination of the commissioner under
69.15this subdivision is not a rule under the Administrative Procedure Act.
69.16(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014,
69.17the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
69.18(d), after being adjusted for inflation under subdivision 7, are increased by $5,340 for
69.19married taxpayers filing joint returns; and (2) For tax years beginning after December 31,
69.202013 2015, and before January 1, 2018, the $8,130 $12,000 in paragraph (b), the $21,190
69.21$21,620 in paragraph (c), and the$25,130 $25,640 in paragraph (d), after being adjusted
69.22for inflation under subdivision 7, are each increased by $5,000 for married taxpayers filing
69.23joint returns. For tax years beginningafter December 31, 2010, and before January 1,
69.242012, and for tax years beginning after December 31, 2013 2015, and before January 1,
69.252018, the commissioner shall annually adjust the $5,000 by the percentage determined
69.26pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
69.27section 1(f)(3)(B), the word "2008" shall be substituted for the word "1992." For2011
69.282016, the commissioner shall then determine the percent change from the 12 months
69.29ending on August 31, 2008, to the 12 months ending on August 31,2010 2015, and in
69.30each subsequent year, from the 12 months ending on August 31, 2008, to the 12 months
69.31ending on August 31 of the year preceding the taxable year. The earned income thresholds
69.32as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the
69.33amount is rounded up to the nearest $10. The determination of the commissioner under
69.34this subdivision is not a rule under the Administrative Procedure Act.
69.35(i) The commissioner shall construct tables showing the amount of the credit at
69.36various income levels and make them available to taxpayers. The tables shall follow
70.1the schedule contained in this subdivision, except that the commissioner may graduate
70.2the transition between income brackets.
70.3EFFECTIVE DATE.This section is effective for taxable years beginning after
70.4December 31, 2015.
70.5 Sec. 14. Minnesota Statutes 2014, section 290.0671, subdivision 7, is amended to read:
70.6 Subd. 7. Inflation adjustment. The earned income amounts used to calculate
70.7the credit and the income thresholds at which the maximum credit begins to be reduced
70.8in subdivision 1 must be adjusted for inflation. The commissioner shall adjust by the
70.9percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
70.10Code, except that in section 1(f)(3)(B) the word"2013" "2015" shall be substituted for
70.11the word "1992." For2015 2017, the commissioner shall then determine the percent
70.12change from the 12 months ending on August 31,2013 2015, to the 12 months ending
70.13on August 31,2014 2016, and in each subsequent year, from the 12 months ending on
70.14August 31,2013 2015, to the 12 months ending on August 31 of the year preceding the
70.15taxable year. The earned income thresholds as adjusted for inflation must be rounded to
70.16the nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest
70.17$10 amount. The determination of the commissioner under this subdivision is not a rule
70.18under the Administrative Procedure Act.
70.19EFFECTIVE DATE.This section is effective for taxable years beginning after
70.20December 31, 2016.
70.21 Sec. 15. Minnesota Statutes 2014, section 290.0674, subdivision 2, is amended to read:
70.22 Subd. 2. Limitations. (a) For claimants with income not greater than $33,500, the
70.23maximum credit allowed for a family is $1,000 multiplied by the number of qualifying
70.24children in kindergarten through grade 12 in the family. The maximum credit for families
70.25with one qualifying child in kindergarten through grade 12 is reduced by $1 for each $4 of
70.26household income over $33,500, and the maximum credit for families with two or more
70.27qualifying children in kindergarten through grade 12 is reduced by $2 for each $4 of
70.28household income over $33,500, but in no case is the credit less than zero.
70.29For purposes of this section "income" has the meaning given insection 290.067,
70.30subdivision 2a. In the case of a married claimant, a credit is not allowed unless a joint
70.31income tax return is filed.
71.1(b) For a nonresident or part-year resident, the credit determined under subdivision 1
71.2and the maximum credit amount in paragraph (a) must be allocated using the percentage
71.3calculated in section290.06, subdivision 2c , paragraph (e).
71.4EFFECTIVE DATE.This section is effective for taxable years beginning after
71.5December 31, 2015.
71.6 Sec. 16. Minnesota Statutes 2014, section 290.0674, is amended by adding a
71.7subdivision to read:
71.8 Subd. 2a. Income. (a) For purposes of this section, "income" means the sum of
71.9the following:
71.10(1) federal adjusted gross income as defined in section 62 of the Internal Revenue
71.11Code; and
71.12(2) the sum of the following amounts to the extent not included in clause (1):
71.13(i) all nontaxable income;
71.14(ii) the amount of a passive activity loss that is not disallowed as a result of section
71.15469, paragraph (i) or (m), of the Internal Revenue Code and the amount of passive activity
71.16loss carryover allowed under section 469(b) of the Internal Revenue Code;
71.17(iii) an amount equal to the total of any discharge of qualified farm indebtedness
71.18of a solvent individual excluded from gross income under section 108(g) of the Internal
71.19Revenue Code;
71.20(iv) cash public assistance and relief;
71.21(v) any pension or annuity (including railroad retirement benefits, all payments
71.22received under the federal Social Security Act, Supplemental Security Income, and
71.23veterans benefits), which was not exclusively funded by the claimant or spouse, or which
71.24was funded exclusively by the claimant or spouse and which funding payments were
71.25excluded from federal adjusted gross income in the years when the payments were made;
71.26(vi) interest received from the federal or a state government or any instrumentality
71.27or political subdivision thereof;
71.28(vii) workers' compensation;
71.29(viii) nontaxable strike benefits;
71.30(ix) the gross amounts of payments received in the nature of disability income or
71.31sick pay as a result of accident, sickness, or other disability, whether funded through
71.32insurance or otherwise;
71.33(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
71.341986, as amended through December 31, 1995;
72.1(xi) contributions made by the claimant to an individual retirement account,
72.2including a qualified voluntary employee contribution; simplified employee pension plan;
72.3self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
72.4of the Internal Revenue Code; or deferred compensation plan under section 457 of the
72.5Internal Revenue Code;
72.6(xii) nontaxable scholarship or fellowship grants;
72.7(xiii) the amount of deduction allowed under section 199 of the Internal Revenue
72.8Code;
72.9(xiv) the amount of deduction allowed under section 220 or 223 of the Internal
72.10Revenue Code;
72.11(xv) the amount deducted for tuition expenses under section 222 of the Internal
72.12Revenue Code; and
72.13(xvi) the amount deducted for certain expenses of elementary and secondary school
72.14teachers under section 62(a)(2)(D) of the Internal Revenue Code.
72.15In the case of an individual who files an income tax return on a fiscal year basis, the
72.16term "federal adjusted gross income" means federal adjusted gross income reflected in the
72.17fiscal year ending in the next calendar year. Federal adjusted gross income may not be
72.18reduced by the amount of a net operating loss carryback or carryforward or a capital loss
72.19carryback or carryforward allowed for the year.
72.20(b) "Income" does not include:
72.21(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
72.22(2) amounts of any pension or annuity that were exclusively funded by the claimant
72.23or spouse if the funding payments were not excluded from federal adjusted gross income
72.24in the years when the payments were made;
72.25(3) surplus food or other relief in kind supplied by a governmental agency;
72.26(4) relief granted under chapter 290A;
72.27(5) child support payments received under a temporary or final decree of dissolution
72.28or legal separation; and
72.29(6) restitution payments received by eligible individuals and excludable interest as
72.30defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
72.312001, Public Law 107-16.
72.32EFFECTIVE DATE.This section is effective for taxable years beginning after
72.33December 31, 2015.
72.34 Sec. 17. Minnesota Statutes 2014, section 290.0677, subdivision 1a, is amended to read:
73.1 Subd. 1a. Credit allowed; past military service. (a) A qualified individual is
73.2allowed a credit against the tax imposed under this chapter for past military service.
73.3The credit equals$750 $1,000. The credit allowed under this subdivision is reduced by
73.4ten percent of adjusted gross income in excess of$30,000 $50,000, but in no case is
73.5the credit less than zero.
73.6 (b) For a nonresident or a part-year resident, the credit under this subdivision
73.7must be allocated based on the percentage calculated under section290.06, subdivision
73.82c , paragraph (e).
73.9EFFECTIVE DATE.This section is effective for taxable years beginning after
73.10December 31, 2015.
73.11 Sec. 18. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:
73.12 Subd. 2. Definitions. For purposes of this section, the following terms have the
73.13meanings given.
73.14 (a) "Qualified research expenses" means (i) qualified research expenses and basic
73.15research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
73.16it does not include expenses incurred for qualified research or basic research conducted
73.17outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue
73.18Code; and (ii) contributions to a nonprofit corporation established and operated pursuant
73.19to the provisions of chapter 317A for the purpose of promoting the establishment and
73.20expansion of business in this state, provided the contributions are invested by the nonprofit
73.21corporation for the purpose of providing funds for small, technologically innovative
73.22enterprises in Minnesota during the early stages of their development.
73.23 (b) "Qualified research" means qualified research as defined in section 41(d) of the
73.24Internal Revenue Code, except that the term does not include qualified research conducted
73.25outside the state of Minnesota.
73.26 (c) "Base amount" means base amount as defined in section 41(c) of the Internal
73.27Revenue Code, except that the average annual gross receipts must be calculated using
73.28Minnesota sales or receipts under section290.191 and the definitions contained in clauses
73.29(a) and (b) shall apply. If there are inadequate records or the records are unavailable to
73.30compute or verify the base percentage, a fixed base percentage of 16 percent must be used.
73.31EFFECTIVE DATE.This section is effective for taxable years beginning after
73.32December 31, 2015.
74.1 Sec. 19. [290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN
74.2TEACHER'S LICENSURE FIELD.
74.3 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
74.4have the meanings given them.
74.5(b) "Master's degree program" means a graduate-level program at an accredited
74.6university leading to a master of arts or science degree in a core content area directly
74.7related to a qualified teacher's licensure field. The master's degree program may not
74.8include pedagogy or a pedagogy component. To be eligible under this credit, a licensed
74.9elementary school teacher must pursue and complete a master's degree program in a core
74.10content area in which the teacher provides direct classroom instruction.
74.11(c) "Qualified teacher" means a K-12 teacher who:
74.12(1) holds a continuing license granted by the Minnesota Board of Teaching both
74.13when the teacher begins the master's degree program and when the teacher completes the
74.14master's degree program;
74.15(2) began a master's degree program after June 30, 2016; and
74.16(3) completes the master's degree program during the taxable year.
74.17(d) "Core content area" means the academic subject of reading, English or language
74.18arts, mathematics, science, foreign languages, civics and government, economics, arts,
74.19history, or geography.
74.20 Subd. 2. Credit allowed. (a) An individual who is a qualified teacher is allowed a
74.21credit against the tax imposed under this chapter. The credit equals $2,500.
74.22(b) For a nonresident or a part-year resident, the credit under this subdivision
74.23must be allocated based on the percentage calculated under section 290.06, subdivision
74.242c, paragraph (e).
74.25(c) A qualified teacher may claim the credit in this section only one time for each
74.26master's degree program completed in a core content area.
74.27 Subd. 3. Credit refundable. (a) If the amount of the credit for which an individual
74.28is eligible exceeds the individual's liability for tax under this chapter, the commissioner
74.29shall refund the excess to the individual.
74.30(b) The amount necessary to pay the refunds required by this section is appropriated
74.31to the commissioner from the general fund.
74.32EFFECTIVE DATE.This section is effective for taxable years beginning after
74.33December 31, 2015.
74.34 Sec. 20. [290.0683] STUDENT LOAN CREDIT.
75.1 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
75.2have the meanings given.
75.3(b) "Adjusted gross income" means federal adjusted gross income as defined in
75.4section 62 of the Internal Revenue Code. In the case of a married couple filing jointly,
75.5"adjusted gross income" means the adjusted gross income of the taxpayer and spouse.
75.6(c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue
75.7Code, except that "earned income" includes combat pay excluded from federal taxable
75.8income under section 112 of the Internal Revenue Code.
75.9(d) "Education profession" means:
75.10(1) a full-time job in public education; early childhood education, including licensed
75.11or regulated child care, Head Start, and state-funded prekindergarten; school-based library
75.12sciences; and other school-based services; or
75.13(2) a full-time job as a faculty member at a tribal college or university as defined in
75.14section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs
75.15subject areas or areas of shortage, including nurse faculty, foreign language faculty, and
75.16part-time faculty at community colleges, as determined by the United States Secretary
75.17of Education.
75.18(e) "Eligible individual" means an individual who has one or more qualified
75.19education loans related to an undergraduate or graduate degree program of the individual
75.20at a postsecondary educational institution.
75.21(f) "Eligible loan payments" means the amount the eligible individual paid during
75.22the taxable year to pay principal and interest on qualified education loans.
75.23(g) "Postsecondary educational institution" means a postsecondary institution
75.24eligible for state student aid under section 136A.103 or, if the institution is not located in
75.25this state, a postsecondary institution participating in the federal Pell Grant program under
75.26Title IV of the Higher Education Act of 1965, Public Law 89-329, as amended.
75.27(h) "Public service job" means a full-time job in emergency management;
75.28government, excluding time served as a member of Congress; military service; public
75.29safety; law enforcement; public health, including nurses, nurse practitioners, nurses
75.30in a clinical setting, and full-time professionals engaged in health care practitioner
75.31occupations and health care support occupations, as such terms are defined by the Bureau
75.32of Labor Statistics; social work in a public child or family service agency; public interest
75.33law services including prosecution or public defense or legal advocacy on behalf of
75.34low-income communities at a nonprofit organization; public service for individuals with
75.35disabilities or public service for the elderly; public library sciences; or at an organization
76.1that is described in section 501(c)(3) of the Internal Revenue Code and exempt from
76.2taxation under section 501(a) of the Internal Revenue Code.
76.3(i) "Qualified education loan" has the meaning given in section 221 of the Internal
76.4Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
76.5 Subd. 2. Credit allowed. (a) An eligible individual is allowed a credit against the
76.6tax due under this chapter. The credit equals a percentage of eligible loan payments in
76.7excess of ten percent of adjusted gross income, up to $1,000, as follows:
76.8(1) for eligible individuals, 50 percent;
76.9(2) for eligible individuals in a public service job, 65 percent; and
76.10(3) for eligible individuals in an education profession, 75 percent.
76.11(b) The credit must not exceed the eligible individual's earned income for the taxable
76.12year.
76.13(c) In the case of a married couple filing a joint return, each spouse is eligible for
76.14the credit in this section.
76.15(d) For a nonresident or part-year resident, the credit must be allocated based on the
76.16percentage calculated under section 290.06, subdivision 2c, paragraph (e).
76.17(e) An eligible individual may receive the credit under this section without regard to
76.18the individual's eligibility for the public service loan forgiveness program under United
76.19States Code, title 20, section 1087e(m).
76.20 Subd. 3. Credit refundable. If the amount of credit that an individual who is a
76.21resident or part-year resident of Minnesota is eligible to receive under this section exceeds
76.22the individual's tax liability under this chapter, the commissioner shall refund the excess
76.23to the individual. For a nonresident taxpayer, the credit may not exceed the taxpayer's
76.24liability for tax under this chapter.
76.25 Subd. 4. Appropriation. An amount sufficient to pay the refunds required by this
76.26section is appropriated to the commissioner from the general fund.
76.27EFFECTIVE DATE.This section is effective for taxable years beginning after
76.28December 31, 2015.
76.29 Sec. 21. [290.0684] SECTION 529 COLLEGE SAVINGS PLAN CREDIT.
76.30 Subdivision 1. Definitions. For purposes of this section, the term "federal adjusted
76.31gross income" has the meaning given under section 62(a) of the Internal Revenue Code,
76.32and "nonqualified distribution" means any distribution that is includible in gross income
76.33under section 529 of the Internal Revenue Code.
76.34 Subd. 2. Credit allowed. (a) A credit of up to $500 is allowed to a resident
76.35individual against the tax imposed by this chapter, subject to the limitations in paragraph
77.1(b). The credit is not allowed to an individual who is eligible to be claimed as a dependent,
77.2as defined in sections 151 and 152 of the Internal Revenue Code.
77.3(b) The credit allowed must be calculated by applying the following rates to the
77.4amount contributed to an account in a plan qualifying under section 529 of the Internal
77.5Revenue Code, in a taxable year, reduced by any withdrawals from the account made
77.6during the taxable year, and not including any amounts rolled over from other accounts in
77.7plans qualifying under section 529 of the Internal Revenue Code:
77.8(1) 50 percent for individual filers and married couples filing a joint return who have
77.9federal adjusted gross income of not more than $80,000;
77.10(2) 25 percent for married couples filing a joint return who have federal adjusted
77.11gross income over $80,000, but not more than $100,000;
77.12(3) ten percent for married couples filing a joint return who have federal adjusted
77.13gross income over $100,000, but not more than $120,000; and
77.14(4) five percent for married couples filing a joint return who have federal adjusted
77.15gross income over $120,000, but not more than $160,000.
77.16(c) The income thresholds in paragraph (b), clauses (1) to (4), used to calculate the
77.17credit, must be adjusted for inflation. The commissioner shall adjust by the percentage
77.18determined under the provisions of section 1(f) of the Internal Revenue Code, except that
77.19in section 1(f)(3)(B) the word "2015" is substituted for the word "1992." For 2017, the
77.20commissioner shall then determine the percent change from the 12 months ending on
77.21August 31, 2015, to the 12 months ending on August 31, 2016, and in each subsequent
77.22year, from the 12 months ending on August 31, 2015, to the 12 months ending on August
77.2331 of the year preceding the taxable year. The income thresholds as adjusted for inflation
77.24must be rounded to the nearest $10 amount. If the amount ends in $5, the amount is
77.25rounded up to the nearest $10 amount. The determination of the commissioner under this
77.26subdivision is not a rule under the Administrative Procedure Act including section 14.386.
77.27 Subd. 3. Credit refundable. If the amount of credit that an individual is eligible
77.28to receive under this section exceeds the individual's tax liability under this chapter, the
77.29commissioner shall refund the excess to the individual.
77.30 Subd. 4. Allocation. For a part-year resident, the credit must be allocated based on
77.31the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
77.32 Subd. 5. Recapture of credit. In the case of a nonqualified distribution, the
77.33taxpayer is liable to the commissioner for the lesser of: ten percent of the amount of the
77.34nonqualified distribution, or the sum of credits received under this section for all years.
77.35 Subd. 6. Appropriation. An amount sufficient to pay the refunds required by this
77.36section is appropriated to the commissioner from the general fund.
78.1EFFECTIVE DATE.This section is effective for taxable years beginning after
78.2December 31, 2015.
78.3 Sec. 22. [290.0803] SECTION 179 EXPENSING SUBTRACTION.
78.4 Subdivision 1. Current year allowance. (a) In each of the five tax years
78.5immediately following the tax year in which an addition is required under section 290.01,
78.6subdivision 19a, clause (8), or 19c, clause (13), the current year allowance equals one-fifth
78.7of the addition made by the taxpayer under section 290.01, subdivision 19a, clause (8),
78.8or 19c, clause (13).
78.9(b) In the case of a shareholder of a corporation that is an S corporation, the current
78.10year allowance is reduced by the positive value of any net operating loss under section
78.11172 of the Internal Revenue Code generated for the tax year of the addition and, if the net
78.12operating loss exceeds the addition for the tax year, the current year allowance is zero.
78.13 Subd. 2. Section 179 expensing carryover. For purposes of this section, the current
78.14year allowance determined under subdivision 1 is considered to be the last modification
78.15allowed under section 290.01, subdivision 19b or 19d, in determining net income. If the
78.16amount allowed under subdivision 1 exceeds net income computed without regard to the
78.17current year allowance, then the excess is a section 179 expensing carryover to each of the
78.18ten succeeding taxable years. The entire amount of the section 179 expensing carryover
78.19is carried first to the earliest taxable year to which the section 179 expensing carryover
78.20may be carried and then to each successive year to which the section 179 expensing
78.21carryover may be carried.
78.22 Subd. 3. Section 179 expensing subtraction. A taxpayer is allowed a section 179
78.23expensing subtraction from federal taxable income under section 290.01, subdivision 19b
78.24or 19d. The subtraction equals the sum of:
78.25(1) the current year allowance determined under subdivision 1; and
78.26(2) any section 179 expensing carryover from prior taxable years determined under
78.27subdivision 2.
78.28EFFECTIVE DATE.This section is effective for taxable years beginning after
78.29December 31, 2015.
78.30 Sec. 23. Minnesota Statutes 2014, section 290.091, subdivision 2, is amended to read:
78.31 Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
78.32terms have the meanings given:
78.33 (a) "Alternative minimum taxable income" means the sum of the following for
78.34the taxable year:
79.1 (1) the taxpayer's federal alternative minimum taxable income as defined in section
79.255(b)(2) of the Internal Revenue Code;
79.3 (2) the taxpayer's itemized deductions allowed in computing federal alternative
79.4minimum taxable income, but excluding:
79.5 (i) the charitable contribution deduction under section 170 of the Internal Revenue
79.6Code;
79.7 (ii) the medical expense deduction;
79.8 (iii) the casualty, theft, and disaster loss deduction; and
79.9 (iv) the impairment-related work expenses of a disabled person;
79.10 (3) for depletion allowances computed under section 613A(c) of the Internal
79.11Revenue Code, with respect to each property (as defined in section 614 of the Internal
79.12Revenue Code), to the extent not included in federal alternative minimum taxable income,
79.13the excess of the deduction for depletion allowable under section 611 of the Internal
79.14Revenue Code for the taxable year over the adjusted basis of the property at the end of the
79.15taxable year (determined without regard to the depletion deduction for the taxable year);
79.16 (4) to the extent not included in federal alternative minimum taxable income, the
79.17amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
79.18Internal Revenue Code determined without regard to subparagraph (E);
79.19 (5) to the extent not included in federal alternative minimum taxable income, the
79.20amount of interest income as provided by section290.01, subdivision 19a , clause (1); and
79.21 (6) the amount of addition required by section290.01, subdivision 19a , clauses (7)
79.22to (9), and (11) to (14);
79.23 less the sum of the amounts determined under the following:
79.24 (1) interest income as defined in section290.01, subdivision 19b , clause (1);
79.25 (2) an overpayment of state income tax as provided by section290.01, subdivision
79.2619b , clause (2), to the extent included in federal alternative minimum taxable income;
79.27 (3) the amount of investment interest paid or accrued within the taxable year on
79.28indebtedness to the extent that the amount does not exceed net investment income, as
79.29defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
79.30amounts deducted in computing federal adjusted gross income;
79.31 (4) amounts subtracted from federal taxable income as provided by section290.01,
79.32subdivision 19b , clauses (6), (8) to (14), (16), and (21) (22); and
79.33(5) the amount of the net operating loss allowed under section290.095, subdivision
79.3411 , paragraph (c).
79.35 In the case of an estate or trust, alternative minimum taxable income must be
79.36computed as provided in section 59(c) of the Internal Revenue Code.
80.1 (b) "Investment interest" means investment interest as defined in section 163(d)(3)
80.2of the Internal Revenue Code.
80.3 (c) "Net minimum tax" means the minimum tax imposed by this section.
80.4 (d) "Regular tax" means the tax that would be imposed under this chapter (without
80.5regard to this section and section 290.032), reduced by the sum of the nonrefundable
80.6credits allowed under this chapter.
80.7 (e) "Tentative minimum tax" equals6.75 percent of alternative minimum taxable
80.8income after subtracting the exemption amount determined under subdivision 3.
80.9EFFECTIVE DATE.This section is effective for taxable years beginning after
80.10December 31, 2015.
80.11 Sec. 24. Minnesota Statutes 2015 Supplement, section 290A.03, subdivision 15,
80.12is amended to read:
80.13 Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal
80.14Revenue Code of 1986, as amended through December 31,2014 2015.
80.15EFFECTIVE DATE.This section is effective retroactively for property tax refunds
80.16based on property taxes payable after December 31, 2015, and rent paid after December
80.1731, 2014.
80.18 Sec. 25. Minnesota Statutes 2015 Supplement, section 291.005, subdivision 1, is
80.19amended to read:
80.20 Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
80.21terms used in this chapter shall have the following meanings:
80.22 (1) "Commissioner" means the commissioner of revenue or any person to whom the
80.23commissioner has delegated functions under this chapter.
80.24 (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
80.25and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
80.26increased by the value of any property in which the decedent had a qualifying income
80.27interest for life and for which an election was made under section291.03, subdivision 1d ,
80.28for Minnesota estate tax purposes, but was not made for federal estate tax purposes.
80.29 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
80.301986, as amended through December 31,2014 2015.
80.31 (4) "Minnesota gross estate" means the federal gross estate of a decedent after
80.32(a) excluding therefrom any property included in the estate which has its situs outside
80.33Minnesota, and (b) including any property omitted from the federal gross estate which
81.1is includable in the estate, has its situs in Minnesota, and was not disclosed to federal
81.2taxing authorities.
81.3 (5) "Nonresident decedent" means an individual whose domicile at the time of
81.4death was not in Minnesota.
81.5 (6) "Personal representative" means the executor, administrator or other person
81.6appointed by the court to administer and dispose of the property of the decedent. If there
81.7is no executor, administrator or other person appointed, qualified, and acting within this
81.8state, then any person in actual or constructive possession of any property having a situs in
81.9this state which is included in the federal gross estate of the decedent shall be deemed
81.10to be a personal representative to the extent of the property and the Minnesota estate tax
81.11due with respect to the property.
81.12 (7) "Resident decedent" means an individual whose domicile at the time of death
81.13was in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and
81.14(d), apply to determinations of domicile under this chapter.
81.15 (8) "Situs of property" means, with respect to:
81.16 (i) real property, the state or country in which it is located;
81.17 (ii) tangible personal property, the state or country in which it was normally kept
81.18or located at the time of the decedent's death or for a gift of tangible personal property
81.19within three years of death, the state or country in which it was normally kept or located
81.20when the gift was executed;
81.21 (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
81.22Code, owned by a nonresident decedent and that is normally kept or located in this state
81.23because it is on loan to an organization, qualifying as exempt from taxation under section
81.24501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
81.25deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
81.26 (iv) intangible personal property, the state or country in which the decedent was
81.27domiciled at death or for a gift of intangible personal property within three years of death,
81.28the state or country in which the decedent was domiciled when the gift was executed.
81.29 For a nonresident decedent with an ownership interest in a pass-through entity with
81.30assets that include real or tangible personal property, situs of the real or tangible personal
81.31property, including qualified works of art, is determined as if the pass-through entity does
81.32not exist and the real or tangible personal property is personally owned by the decedent.
81.33If the pass-through entity is owned by a person or persons in addition to the decedent,
81.34ownership of the property is attributed to the decedent in proportion to the decedent's
81.35capital ownership share of the pass-through entity.
81.36(9) "Pass-through entity" includes the following:
82.1(i) an entity electing S corporation status under section 1362 of the Internal Revenue
82.2Code;
82.3(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
82.4(iii) a single-member limited liability company or similar entity, regardless of
82.5whether it is taxed as an association or is disregarded for federal income tax purposes
82.6under Code of Federal Regulations, title 26, section 301.7701-3; or
82.7(iv) a trust to the extent the property is includible in the decedent's federal gross
82.8estate; but excludes
82.9 (v) an entity whose ownership interest securities are traded on an exchange regulated
82.10by the Securities and Exchange Commission as a national securities exchange under
82.11section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.
82.12EFFECTIVE DATE.This section is effective retroactively for estates of decedents
82.13dying after December 31, 2015.
82.14 Sec. 26. Minnesota Statutes 2014, section 291.03, is amended by adding a subdivision
82.15to read:
82.16 Subd. 12. Certain dispositions to government entities. Notwithstanding any
82.17provision of this section, no taxpayer is disqualified for the subtraction provided under
82.18section 291.016, subdivision 3, nor is any taxpayer liable for the recapture tax provided in
82.19subdivision 11, solely because the state, any local government unit, or any other entity
82.20that has the power of eminent domain acquires title or possession of the land for a public
82.21purpose within the three-year holding period.
82.22EFFECTIVE DATE.This section is effective retroactively for estates of decedents
82.23dying after June 30, 2011.
82.24 Sec. 27. AMENDED RETURNS.
82.25 Subdivision 1. Certain IRA rollovers. An individual who excludes an amount
82.26from net income in a prior taxable year through rollover of an airline payment amount to
82.27a traditional IRA, as authorized under Public Law 114-113, division Q, title III, section
82.28307, may file an amended individual income tax return and claim for refund of state taxes
82.29as provided under Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by
82.30September 1, 2016.
82.31 Subd. 2. Exclusion for certain incarcerated individuals. An individual who
82.32excludes from net income in a prior taxable year civil damages, restitution, or other
83.1monetary award received as compensation for a wrongful incarceration, as authorized
83.2under Public Law 114-113, division Q, title III, section 304, may file an amended
83.3individual income tax return and claim for refund of state taxes as provided under
83.4Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September 1, 2016.
83.5EFFECTIVE DATE.This section is effective the day following final enactment.
83.6 Sec. 28. ESTATE TAX REVIEW; TEMPORARY LIMIT ON ASSESSMENTS.
83.7(a) The commissioner of revenue shall:
83.8(1) review the estate tax's definition of qualified farm property and its linkage to the
83.9property tax classification of the property during the three-year period following the
83.10death of the decedent; and
83.11(2) by February 1, 2017, report to the committees of the house of representatives
83.12and the senate with jurisdiction over taxes on alternative methods of ensuring that the
83.13use of the property by qualified heirs during the three-year period after the decedent's
83.14death is consistent with the purpose of limiting the subtraction to properties where its use
83.15continues that of the decedent without any material change in its use by the qualified heirs
83.16and its ownership is consistent with maintaining family ownership of the farm.
83.17(b) Prior to June 1, 2017, the commissioner of revenue shall not assess recapture tax
83.18under Minnesota Statutes, section 291.03, subdivision 11, for a change in the property tax
83.19classification of agricultural homestead property if the following conditions are satisfied:
83.20(1) the property is held in a trust of which the surviving spouse is a beneficiary; and
83.21(2) the property receives partial homestead classification because a beneficiary of
83.22the trust is the owner of another agricultural homestead.
83.23EFFECTIVE DATE.This section is effective the day following final enactment.
83.24 Sec. 29. INDIVIDUAL INCOME TAX COLLECTION ACTION PROHIBITED.
83.25Notwithstanding any law to the contrary, the commissioner of revenue shall not
83.26increase the amount due or decrease the refund for an individual income tax return for
83.27the taxable year beginning after December 31, 2014, and before January 1, 2016, to the
83.28extent the amount due was understated or the refund was overstated because the taxpayer
83.29calculated the tax or refund based on the Internal Revenue Code, as amended through
83.30December 31, 2014, rather than based on the Internal Revenue Code, as amended through
83.31December 31, 2015, as provided in this act.
83.32EFFECTIVE DATE.This section is effective the day following final enactment.
84.1 Sec. 30. REPEALER.
84.2Minnesota Statutes 2014, section 290.067, subdivisions 2 and 2a, are repealed.
84.3EFFECTIVE DATE.This section is effective for taxable years beginning after
84.4December 31, 2015.
84.7 Section 1. Minnesota Statutes 2014, section 297A.61, subdivision 3, is amended to read:
84.8 Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited
84.9to, each of the transactions listed in this subdivision. In applying the provisions of this
84.10chapter, the terms "tangible personal property" and "retail sale" include the taxable
84.11services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision
84.12of these taxable services, unless specifically provided otherwise. Services performed by
84.13an employee for an employer are not taxable. Services performed by a partnership or
84.14association for another partnership or association are not taxable if one of the entities owns
84.15or controls more than 80 percent of the voting power of the equity interest in the other
84.16entity. Services performed between members of an affiliated group of corporations are not
84.17taxable. For purposes of the preceding sentence, "affiliated group of corporations" means
84.18those entities that would be classified as members of an affiliated group as defined under
84.19United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
84.20 (b) Sale and purchase include:
84.21 (1) any transfer of title or possession, or both, of tangible personal property, whether
84.22absolutely or conditionally, for a consideration in money or by exchange or barter; and
84.23 (2) the leasing of or the granting of a license to use or consume, for a consideration
84.24in money or by exchange or barter, tangible personal property, other than a manufactured
84.25home used for residential purposes for a continuous period of 30 days or more.
84.26 (c) Sale and purchase include the production, fabrication, printing, or processing of
84.27tangible personal property for a consideration for consumers who furnish either directly or
84.28indirectly the materials used in the production, fabrication, printing, or processing.
84.29 (d) Sale and purchase include the preparing for a consideration of food.
84.30Notwithstanding section297A.67, subdivision 2 , taxable food includes, but is not limited
84.31to, the following:
84.32 (1) prepared food sold by the retailer;
84.33 (2) soft drinks;
84.34 (3) candy;
84.35 (4) dietary supplements; and
85.1 (5) all food sold through vending machines.
85.2 (e) A sale and a purchase includes the furnishing for a consideration of electricity,
85.3gas, water, or steam for use or consumption within this state.
85.4 (f) A sale and a purchase includes the transfer for a consideration of prewritten
85.5computer software whether delivered electronically, by load and leave, or otherwise.
85.6 (g) A sale and a purchase includes the furnishing for a consideration of the following
85.7services:
85.8 (1) the privilege of admission to places of amusement, recreational areas, or athletic
85.9events, and the making available of amusement devices, tanning facilities, reducing
85.10salons, steam baths, health clubs, and spas or athletic facilities;
85.11 (2) lodging and related services by a hotel, rooming house, resort, campground,
85.12motel, or trailer camp, including furnishing the guest of the facility with access to
85.13telecommunication services, and the granting of any similar license to use real property in
85.14a specific facility, other than the renting or leasing of it for a continuous period of 30 days
85.15or more under an enforceable written agreement that may not be terminated without prior
85.16notice and including accommodations intermediary services provided in connection with
85.17other services provided under this clause;
85.18 (3) nonresidential parking services, whether on a contractual, hourly, or other
85.19periodic basis, except for parking at a meter;
85.20 (4) the granting of membership in a club, association, or other organization if:
85.21 (i) the club, association, or other organization makes available for the use of its
85.22members sports and athletic facilities, without regard to whether a separate charge is
85.23assessed for use of the facilities; and
85.24 (ii) use of the sports and athletic facility is not made available to the general public
85.25on the same basis as it is made available to members.
85.26Granting of membership means both onetime initiation fees and periodic membership
85.27dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
85.28squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
85.29swimming pools; and other similar athletic or sports facilities;
85.30 (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
85.31material used in road construction; and delivery of concrete block by a third party if the
85.32delivery would be subject to the sales tax if provided by the seller of the concrete block.
85.33For purposes of this clause, "road construction" means construction of:
85.34 (i) public roads;
85.35 (ii) cartways; and
86.1 (iii) private roads in townships located outside of the seven-county metropolitan area
86.2up to the point of the emergency response location sign; and
86.3 (6) services as provided in this clause:
86.4 (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
86.5and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
86.6drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
86.7include services provided by coin operated facilities operated by the customer;
86.8 (ii) motor vehicle washing, waxing, and cleaning services, including services
86.9provided by coin operated facilities operated by the customer, and rustproofing,
86.10undercoating, and towing of motor vehicles;
86.11 (iii) building and residential cleaning, maintenance, and disinfecting services and
86.12pest control and exterminating services;
86.13 (iv) detective, security, burglar, fire alarm, and armored car services; but not
86.14including services performed within the jurisdiction they serve by off-duty licensed peace
86.15officers as defined in section626.84, subdivision 1 , or services provided by a nonprofit
86.16organization or any organization at the direction of a county for monitoring and electronic
86.17surveillance of persons placed on in-home detention pursuant to court order or under the
86.18direction of the Minnesota Department of Corrections;
86.19 (v) pet grooming services;
86.20 (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
86.21and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
86.22plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
86.23clearing contract as defined in section297A.68, subdivision 40 ; and tree trimming for
86.24public utility lines. Services performed under a construction contract for the installation of
86.25shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
86.26 (vii) massages, except when provided by a licensed health care facility or
86.27professional or upon written referral from a licensed health care facility or professional for
86.28treatment of illness, injury, or disease; and
86.29 (viii) the furnishing of lodging, board, and care services for animals in kennels and
86.30other similar arrangements, but excluding veterinary and horse boarding services.
86.31 (h) A sale and a purchase includes the furnishing for a consideration of tangible
86.32personal property or taxable services by the United States or any of its agencies or
86.33instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
86.34subdivisions.
86.35 (i) A sale and a purchase includes the furnishing for a consideration of
86.36telecommunications services, ancillary services associated with telecommunication
87.1services, and pay television services. Telecommunication services include, but are
87.2not limited to, the following services, as defined in section297A.669 : air-to-ground
87.3radiotelephone service, mobile telecommunication service, postpaid calling service,
87.4prepaid calling service, prepaid wireless calling service, and private communication
87.5services. The services in this paragraph are taxed to the extent allowed under federal law.
87.6 (j) A sale and a purchase includes the furnishing for a consideration of installation if
87.7the installation charges would be subject to the sales tax if the installation were provided
87.8by the seller of the item being installed.
87.9 (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
87.10to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
87.11the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
87.1259B.02, subdivision
11.
87.13 (l) A sale and a purchase includes furnishing for a consideration of specified digital
87.14products or other digital products or granting the right for a consideration to use specified
87.15digital products or other digital products on a temporary or permanent basis and regardless
87.16of whether the purchaser is required to make continued payments for such right. Wherever
87.17the term "tangible personal property" is used in this chapter, other than in subdivisions 10
87.18and 38, the provisions also apply to specified digital products, or other digital products,
87.19unless specifically provided otherwise or the context indicates otherwise.
87.20(m) The sale of the privilege of admission under section 297A.61, subdivision 3,
87.21paragraph (g), clause (1), to a place of amusement or athletic event includes all charges
87.22included in the privilege of admission's sales price, without deduction for amenities that
87.23may be provided, unless the amenities are separately stated and the purchaser of the
87.24privilege of admission is entitled to add or decline the amenities, and the amenities are not
87.25otherwise taxable.
87.26EFFECTIVE DATE.This section is effective the day following final enactment.
87.27 Sec. 2. Minnesota Statutes 2014, section 297A.66, subdivision 1, is amended to read:
87.28 Subdivision 1. Definitions. (a) To the extent allowed by the United States
87.29Constitution and the laws of the United States, "retailer maintaining a place of business in
87.30this state," or a similar term, means a retailer:
87.31(1) having or maintaining within this state, directly or by a subsidiary or an affiliate,
87.32an office, place of distribution, sales, storage, or sample room or place, warehouse, or
87.33other place of business, including the employment of a resident of this state who works
87.34from a home office in this state; or
88.1(2) having a representative, including, but not limited to, an affiliate, agent,
88.2salesperson, canvasser,or marketplace provider, solicitor, or other third party operating in
88.3this state under the authority of the retailer or its subsidiary, for any purpose, including the
88.4repairing, selling, delivering, installing, facilitating sales, processing sales, or soliciting of
88.5orders for the retailer's goods or services, or the leasing of tangible personal property located
88.6in this state, whether the place of business or agent, representative, affiliate, salesperson,
88.7canvasser, or solicitor is located in the state permanently or temporarily, or whether or not
88.8the retailer, subsidiary, or affiliate is authorized to do business in this state. A retailer is
88.9represented by a marketplace provider in this state if the retailer makes sales in this state
88.10facilitated by a marketplace provider that maintains a place of business in this state.
88.11(b) "Destination of a sale" means the location to which the retailer makes delivery of
88.12the property sold, or causes the property to be delivered, to the purchaser of the property,
88.13or to the agent or designee of the purchaser. The delivery may be made by any means,
88.14including the United States Postal Service or a for-hire carrier.
88.15(c) "Marketplace provider" means any person who facilitates a retail sale by a
88.16retailer by:
88.17(1) listing or advertising for sale by the retailer in any forum, tangible personal
88.18property, services, or digital goods that are subject to tax under this chapter; and
88.19(2) either directly or indirectly through agreements or arrangements with third
88.20parties collecting payment from the customer and transmitting that payment to the
88.21retailer regardless of whether the marketplace provider receives compensation or other
88.22consideration in exchange for its services.
88.23(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible
88.24goods, services, and digital goods subject to sales and use tax under this chapter.
88.25 Sec. 3. Minnesota Statutes 2014, section 297A.66, subdivision 2, is amended to read:
88.26 Subd. 2. Retailer maintaining place of business in this state. (a) Except as
88.27provided in paragraph (b), a retailer maintaining a place of business in this state who
88.28makes retail sales in Minnesota or to a destination in Minnesota shall collect sales and use
88.29taxes and remit them to the commissioner under section297A.77 .
88.30(b) A retailer with total taxable retail sales to customers in this state of less than
88.31$10,000 in the 12-month period ending on the last day of the most recently completed
88.32calendar quarter is not required to collect and remit sales tax if it is determined to be a
88.33retailer maintaining a place of business in the state solely because it made sales through
88.34one or more marketplace providers. The provisions of this paragraph do not apply to a
88.35retailer that is or was registered to collect sales and use tax in this state.
89.1 Sec. 4. Minnesota Statutes 2014, section 297A.66, subdivision 4, is amended to read:
89.2 Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes
89.3of subdivision 1, paragraph (a), if the entity:
89.4(1)the entity uses its facilities or employees in this state to advertise, promote, or
89.5facilitate the establishment or maintenance of a market for sales of items by the retailer
89.6to purchasers in this state or for the provision of services to the retailer's purchasers in
89.7this state, such as accepting returns of purchases for the retailer, providing assistance in
89.8resolving customer complaints of the retailer, or providing other services;and
89.9(2)the retailer and the entity are related parties. has the same or a similar business
89.10name to the retailer and sells, from a location or locations in this state, tangible personal
89.11property, digital goods, or services, taxable under this chapter, that are similar to that
89.12sold by the retailer;
89.13(3) maintains an office, distribution facility, salesroom, warehouse, storage place, or
89.14other similar place of business in this state to facilitate the delivery of tangible personal
89.15property, digital goods, or services sold by the retailer to its customers in this state;
89.16(4) maintains a place of business in this state and uses trademarks, service marks,
89.17or trade names in this state that are the same or substantially similar to those used by
89.18the retailer, and that use is done with the express or implied consent of the holder of
89.19the marks or names;
89.20(5) delivers, installs, or assembles tangible personal property in this state, or
89.21performs maintenance or repair services on tangible personal property in this state, for
89.22tangible personal property sold by the retailer;
89.23(6) facilitates the delivery of tangible personal property to customers of the retailer
89.24by allowing the customers to pick up tangible personal property sold by the retailer at a
89.25place of business the entity maintains in this state; or
89.26(7) shares management, business systems, business practices, or employees with the
89.27retailer, or engages in intercompany transactions with the retailer related to the activities
89.28that establish or maintain the market in this state of the retailer.
89.29(b) Two entities are related parties under this section if one of the entities meets at
89.30least one of the following tests with respect to the other entity:
89.31(1) one or both entities is a corporation, and one entity and any party related to that
89.32entity in a manner that would require an attribution of stock from the corporation to the
89.33party or from the party to the corporation under the attribution rules of section 318 of the
89.34Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50
89.35percent of the value of the corporation's outstanding stock;
90.1(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary,
90.2and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly,
90.3beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital,
90.4stock, or value of the other entity or both entities;or
90.5(3) an individual stockholder and the members of the stockholder's family (as
90.6defined in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially,
90.7or constructively, in the aggregate, at least 50 percent of the value of both entities'
90.8outstanding stock.;
90.9(4) the entities are related within the meaning of subsections (b) and (c) of section
90.10267 or 707(b)(1) of the Internal Revenue Code; or
90.11(5) the entities have one or more ownership relationships and the relationships were
90.12designed with a principal purpose of avoiding the application of this section.
90.13(c) An entity is an affiliate under the provisions of this subdivision if the requirements
90.14of paragraphs (a) and (b) are met during any part of the 12-month period ending on the
90.15first day of the month before the month in which the sale was made.
90.16 Sec. 5. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision
90.17to read:
90.18 Subd. 4b. Collection and remittance requirements for marketplace providers
90.19and marketplace sellers. (a) A marketplace provider shall collect sales and use taxes
90.20and remit them to the commissioner under section 297A.77 for all facilitated sales for a
90.21retailer, and is subject to audit on the retail sales it facilitates unless the retailer either:
90.22(1) provides a copy of the seller's registration to collect sales and use tax in this state
90.23to the marketplace provider before the marketplace provider facilitates a sale; or
90.24(2) upon inquiry by the marketplace provider or its agent, the commissioner
90.25discloses that the retailer is registered to collect sales and use taxes in this state.
90.26(b) Nothing in this subdivision shall be construed to interfere with the ability of a
90.27marketplace provider and a retailer to enter into an agreement regarding fulfillment of
90.28the requirements of this chapter.
90.29(c) A marketplace provider is not liable under this subdivision for failure to file and
90.30collect and remit sales and use taxes if the marketplace provider demonstrates that the
90.31error was due to incorrect or insufficient information given to the marketplace provider by
90.32the retailer. This paragraph does not apply if the marketplace provider and the marketplace
90.33seller are related as defined in subdivision 4, paragraph (b).
90.34 Sec. 6. Minnesota Statutes 2014, section 297A.67, subdivision 7a, is amended to read:
91.1 Subd. 7a. Accessories and supplies. Accessories and supplies required for the
91.2effective use of durable medical equipment for home use only or purchased in a transaction
91.3covered by Medicareor, Medicaid, or other health insurance plan, that are not already
91.4exempt under subdivision 7, are exempt. Accessories and supplies for the effective use
91.5of a prosthetic device, that are not already exempt under subdivision 7, are exempt.
91.6For purposes of this subdivision "durable medical equipment," "prosthetic device,"
91.7"Medicare," and "Medicaid" have the definitions given in subdivision 7., and "other health
91.8insurance plan" means a health plan defined in section 62A.011, subdivision 3, or 62V.02,
91.9subdivision 4, or a qualified health plan defined in section 62A.011, subdivision 7.
91.10EFFECTIVE DATE.This section is effective for sales and purchases made after
91.11June 30, 2016.
91.12 Sec. 7. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision
91.13to read:
91.14 Subd. 34. Suite licenses. The sale of the privilege of admission under section
91.15297A.61, subdivision 3, paragraph (g), clause (1), to a place of amusement or athletic
91.16event does not include consideration paid for a license to use a private suite, private
91.17skybox, or private box seat provided that: (1) the lessee may use the private suite, private
91.18skybox, or private box seat by mutual arrangement with the lessor on days when there is
91.19no amusement or athletic event; and (2) the sales price for the privilege of admission is
91.20separately stated and is equal to or greater than the highest priced general admission ticket
91.21for the closest seat not in the private suite, private skybox, or private box seat.
91.22EFFECTIVE DATE.This section is effective for sales and purchases made after
91.23June 30, 2016.
91.24 Sec. 8. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision
91.25to read:
91.26 Subd. 35. Stadium builder's licenses. The sale of the privilege of admission under
91.27section 297A.61, subdivision 3, paragraph (g), clause (1), does not include consideration
91.28paid for a stadium builder's license authorized under section 473J.15, subdivision 14.
91.29EFFECTIVE DATE.This section is effective the day following final enactment.
91.30 Sec. 9. Minnesota Statutes 2014, section 297A.68, subdivision 9, is amended to read:
91.31 Subd. 9. Super Bowl admissions and related events. (a) The granting of the
91.32privilege of admission to a world championship football game sponsored by the National
92.1Football Leagueis and to related events sponsored by the National Football League or its
92.2affiliates, or the Minnesota Super Bowl Host Committee, are exempt.
92.3(b) The sale of nonresidential parking by the National Football League for
92.4attendance at a world championship football game sponsored by the National Football
92.5League and for related events sponsored by the National Football League or its affiliates,
92.6or the Minnesota Super Bowl Host Committee, is exempt.
92.7(c) For the purposes of this subdivision:
92.8(1) "related events sponsored by the National Football League or its affiliates"
92.9includes but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate,
92.10NFL On Location, and NFL House; and
92.11(2) "affiliates" does not include National Football League teams.
92.12EFFECTIVE DATE.The amendments to this section are effective for sales and
92.13purchases made after June 30, 2016, and before March 1, 2018.
92.14 Sec. 10. Minnesota Statutes 2014, section 297A.70, subdivision 14, is amended to read:
92.15 Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of
92.16tangible personal property or services at, and admission charges for fund-raising events
92.17sponsored by, a nonprofit organization are exempt if:
92.18(1) all gross receipts are recorded as such, in accordance with generally accepted
92.19accounting practices, on the books of the nonprofit organization; and
92.20(2) the entire proceeds, less the necessary expenses for the event, will be used solely
92.21and exclusively for charitable, religious, or educational purposes. Exempt sales include
92.22the sale of prepared food, candy, and soft drinks at the fund-raising event.
92.23(b) This exemption is limited in the following manner:
92.24(1) it does not apply to admission charges for events involving bingo or other
92.25gambling activities or to charges for use of amusement devices involving bingo or other
92.26gambling activities;
92.27(2) all gross receipts are taxable if the profits are not used solely and exclusively for
92.28charitable, religious, or educational purposes;
92.29(3) it does not apply unless the organization keeps a separate accounting record,
92.30including receipts and disbursements from each fund-raising event that documents all
92.31deductions from gross receipts with receipts and other records;
92.32(4) it does not apply to any sale made by or in the name of a nonprofit corporation as
92.33the active or passive agent of a person that is not a nonprofit corporation;
92.34(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
93.1(6) it does not apply to fund-raising events conducted on premises leased for more
93.2thanfive ten days but less than 30 days; and
93.3(7) it does not apply if the risk of the event is not borne by the nonprofit organization
93.4and the benefit to the nonprofit organization is less than the total amount of the state and
93.5local tax revenues forgone by this exemption.
93.6(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
93.7government, corporation, society, association, foundation, or institution organized and
93.8operated for charitable, religious, educational, civic, fraternal, and senior citizens' or
93.9veterans' purposes, no part of the net earnings of which inures to the benefit of a private
93.10individual.
93.11(d) For purposes of this subdivision, "fund-raising events" means activities of
93.12limited duration, not regularly carried out in the normal course of business, that attract
93.13patrons for community, social, and entertainment purposes, such as auctions, bake sales,
93.14ice cream socials, block parties, carnivals, competitions, concerts, concession stands,
93.15craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion
93.16shows, festivals, galas, special event workshops, sporting activities such as marathons and
93.17tournaments, and similar events. Fund-raising events do not include the operation of a
93.18regular place of business in which services are provided or sales are made during regular
93.19hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales,
93.20regularly scheduled classes, or other activities carried out in the normal course of business.
93.21EFFECTIVE DATE.This section is effective for sales and purchases made after
93.22June 30, 2016.
93.23 Sec. 11. Minnesota Statutes 2014, section 297A.71, is amended by adding a
93.24subdivision to read:
93.25 Subd. 49. Siding production facility materials. Building materials and supplies
93.26for constructing a siding production facility that can produce at least 400,000,000 square
93.27feet of siding per year are exempt. The tax must be imposed and collected as if the rate
93.28under section 297A.62, subdivision 1, applied, and then refunded in the manner provided
93.29in section 297A.75.
93.30EFFECTIVE DATE.This section is effective for sales and purchases made after
93.31June 30, 2016.
93.32 Sec. 12. Minnesota Statutes 2014, section 297A.71, is amended by adding a
93.33subdivision to read:
94.1 Subd. 50. Properties destroyed by fire. Building materials and supplies used in,
94.2and equipment incorporated into, the construction or replacement of real property that is
94.3located in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be
94.4imposed and collected as if the rate under section 297A.62, subdivision 1, applied and
94.5then refunded in the manner provided in section 297A.75.
94.6EFFECTIVE DATE.This section is effective for sales and purchases made after
94.7June 30, 2016, and before July 1, 2018.
94.8 Sec. 13. Minnesota Statutes 2014, section 297A.71, is amended by adding a
94.9subdivision to read:
94.10 Subd. 51. Former Duluth Central High School. Materials and supplies used
94.11in and equipment incorporated into a private redevelopment project on the site of the
94.12former Duluth Central High School are exempt, provided the resulting development is
94.13subject to property taxes. The tax must be imposed and collected as if the rate under
94.14section 297A.62, subdivision 1, applied and then refunded in the manner provided in
94.15section 297A.75. The commissioner must not pay more than $5,000,000 in refunds for
94.16purchases exempt under this section. Refunds must be processed and issued in the order
94.17that complete and accurate applications are received by the commissioner.
94.18EFFECTIVE DATE.This section is effective for sales and purchases made after
94.19June 30, 2016, and before January 1, 2018.
94.20 Sec. 14. Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read:
94.21 Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the
94.22following exempt items must be imposed and collected as if the sale were taxable and the
94.23rate under section297A.62, subdivision 1 , applied. The exempt items include:
94.24 (1) building materials for an agricultural processing facility exempt under section
94.25297A.71, subdivision 13
;
94.26 (2) building materials for mineral production facilities exempt under section
94.27297A.71, subdivision 14
;
94.28 (3) building materials for correctional facilities under section297A.71, subdivision 3 ;
94.29 (4) building materials used in a residence for disabled veterans exempt under section
94.30297A.71, subdivision 11
;
94.31 (5) elevators and building materials exempt under section297A.71, subdivision 12 ;
94.32 (6) materials and supplies for qualified low-income housing under section297A.71,
94.33subdivision 23 ;
95.1 (7) materials, supplies, and equipment for municipal electric utility facilities under
95.2section297A.71, subdivision 35 ;
95.3 (8) equipment and materials used for the generation, transmission, and distribution
95.4of electrical energy and an aerial camera package exempt under section297A.68 ,
95.5subdivision 37;
95.6 (9) commuter rail vehicle and repair parts under section297A.70 , subdivision 3,
95.7paragraph (a), clause (10);
95.8 (10) materials, supplies, and equipment for construction or improvement of projects
95.9and facilities under section297A.71, subdivision 40 ;
95.10(11) materials, supplies, and equipment for construction, improvement, or expansion
95.11of:
95.12(i) an aerospace defense manufacturing facility exempt under section297A.71,
95.13subdivision 42 ;
95.14(ii) a biopharmaceutical manufacturing facility exempt under section297A.71,
95.15subdivision 45 ;
95.16(iii) a research and development facility exempt under section297A.71, subdivision
95.1746 ; and
95.18(iv) an industrial measurement manufacturing and controls facility exempt under
95.19section297A.71, subdivision 47 ;
95.20(12) enterprise information technology equipment and computer software for use in
95.21a qualified data center exempt under section297A.68, subdivision 42 ;
95.22(13) materials, supplies, and equipment for qualifying capital projects under section
95.23297A.71, subdivision 44
;
95.24(14) items purchased for use in providing critical access dental services exempt
95.25under section297A.70, subdivision 7 , paragraph (c); and
95.26(15) items and services purchased under a business subsidy agreement for use or
95.27consumption primarily in greater Minnesota exempt under section297A.68, subdivision 44 ;
95.28(16) building materials and supplies for constructing a siding facility exempt under
95.29section 297A.71, subdivision 49;
95.30(17) building materials, equipment, and supplies for constructing or replacing real
95.31property exempt under section 297A.71, subdivision 50; and
95.32(18) materials and supplies used in and equipment incorporated into a private
95.33redevelopment project exempt under section 297A.71, subdivision 51.
95.34EFFECTIVE DATE.Clause (16) is effective for sales and purchases made after
95.35June 30, 2016. Clause (17) is effective for sales and purchases made after June 30, 2016,
96.1and before July 1, 2018. Clause (18) is effective for sales and purchases made after June
96.230, 2016, and before January 1, 2018.
96.3 Sec. 15. Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read:
96.4 Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
96.5commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
96.6must be paid to the applicant. Only the following persons may apply for the refund:
96.7 (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
96.8 (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
96.9 (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
96.10provided in United States Code, title 38, chapter 21;
96.11 (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
96.12property;
96.13 (5) for subdivision 1, clause (6), the owner of the qualified low-income housing
96.14project;
96.15 (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or
96.16a joint venture of municipal electric utilities;
96.17 (7) for subdivision 1, clauses (8), (11), (12),and (15), and (16), the owner of the
96.18qualifying business;and
96.19 (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the
96.20governmental entity that owns or contracts for the project or facility; and
96.21 (9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or
96.22developer of the building or project.
96.23EFFECTIVE DATE.The change to clause (7) is effective for sales and purchases
96.24made after June 30, 2016. Clause (9) is effective for sales and purchases made after June
96.2530, 2016, and before July 1, 2018, as it pertains to Minnesota Statutes, section 297A.71,
96.26subdivision 1, clause (17), and for sales and purchases made after June 30, 2016, and
96.27before January 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision
96.281, clause (18).
96.29 Sec. 16. Minnesota Statutes 2014, section 297A.75, subdivision 3, is amended to read:
96.30 Subd. 3. Application. (a) The application must include sufficient information
96.31to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
96.32subcontractor, or builder, under subdivision 1, clauses (3) to (13), or (15), to (18), the
96.33contractor, subcontractor, or builder must furnish to the refund applicant a statement
96.34including the cost of the exempt items and the taxes paid on the items unless otherwise
97.1specifically provided by this subdivision. The provisions of sections289A.40 and
97.2289A.50
apply to refunds under this section.
97.3 (b) An applicant may not file more than two applications per calendar year for
97.4refunds for taxes paid on capital equipment exempt under section297A.68, subdivision 5 .
97.5EFFECTIVE DATE.This section is effective for sales and purchases made after
97.6June 30, 2016.
97.7 Sec. 17. Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read:
97.8 Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision,
97.9"net revenue" means an amount equal to the revenues, including interest and penalties,
97.10collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.
97.11 (b) On or before June 30 of each fiscal year, the commissioner of revenue shall
97.12estimate the amount of the net revenue for the current fiscal year.
97.13 (c) On or after July 1 of the subsequent fiscal year, the commissioner of management
97.14and budget shall transfer the net revenue as estimated in paragraph (b) from the general
97.15fund, as follows:
97.16 (1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to
97.17the county state-aid highway fund. Notwithstanding any other law to the contrary, the
97.18commissioner of transportation shall allocate the funds transferred under this clause to the
97.19counties in the metropolitan area, as defined in section473.121 , subdivision 4, excluding
97.20the counties of Hennepin and Ramsey, so that each county shall receive of such amount
97.21the percentage that its population, as defined in section477A.011 , subdivision 3, estimated
97.22or established by July 15 of the year prior to the current calendar year, bears to the total
97.23population of the counties receiving funds under this clause; and
97.24 (2) the remainder to the greater Minnesota transit account.
97.25(d) The revenues deposited under this subdivision do not include the revenues,
97.26including interest and penalties, generated by the sales tax imposed under section
97.27297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
97.28Constitution, article XI, section 15.
97.29EFFECTIVE DATE.This section is effective beginning with the estimate that must
97.30be completed on or before June 30, 2017, for a transfer that occurs on or after July 1, 2017,
97.31except paragraph (c) is effective the day following final enactment.
97.32 Sec. 18. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
97.33chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws
98.12003, First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154,
98.2article 5, section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
98.3 Subd. 2. (a) Notwithstanding Minnesota Statutes, section477A.016 , or any other
98.4law, ordinance, or city charter provision to the contrary, the city of Duluth may, by
98.5ordinance, impose an additional sales tax of up to one and three-quarter percent on sales
98.6transactions which are described in Minnesota Statutes 2000, section297A.01 , subdivision
98.73, clause (c). The imposition of this tax shall not be subject to voter referendum under
98.8either state law or city charter provisions. When the city council determines that the taxes
98.9imposed under this paragraph at a rate of three-quarters of one percent and other sources
98.10of revenue produce revenue sufficient to pay debt service on bonds in the principal amount
98.11of $40,285,000 plus issuance and discount costs, issued for capital improvements at the
98.12Duluth Entertainment and Convention Center, which include a new arena, the rate of tax
98.13under this subdivision must be reduced by three-quarters of one percent.
98.14(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
98.15section477A.016 , or any other law, ordinance, or city charter provision to the contrary,
98.16the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of
98.17one percent on sales transactions which are described in Minnesota Statutes 2000, section
98.18297A.01, subdivision 3
, clause (c). This tax expires when the city council determines
98.19that the tax imposed under this paragraph, along with the tax imposed under section
98.2022, paragraph (b), has produced revenues sufficient to pay the debt service on bonds
98.21in a principal amount of no more than $18,000,000, plus issuance and discount costs,
98.22to finance capital improvements to public facilities to support tourism and recreational
98.23activities in that portion of the city west of34th 14th Avenue West and the area south of
98.24and including Skyline Parkway.
98.25(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation
98.26bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for the
98.27costs of issuance and any premiums. The proceeds may be used to finance capital
98.28improvements to public facilities that support tourism and recreational activities in the
98.29portion of the city west of34th 14th Avenue West and the area south of and including
98.30Skyline Parkway, as described in paragraph (b). The issuance of the bonds is subject to the
98.31provisions of Minnesota Statutes, chapter 475, except no election shall be required unless
98.32required by the city charter. The bonds shall not be included in computing net debt. The
98.33revenues from the taxes that the city of Duluth may impose under paragraph (b) and under
98.34section 22, paragraph (b), may be pledged to pay principal of and interest on such bonds.
99.1EFFECTIVE DATE.This section is effective the day after the governing body of
99.2the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
99.3645.021, subdivisions 2 and 3.
99.4 Sec. 19. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389,
99.5article 8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and
99.6Laws 2014, chapter 308, article 3, section 22, is amended to read:
99.7 Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND
99.8MOTELS.
99.9 (a) Notwithstanding Minnesota Statutes, section477A.016 , or any other law, or
99.10ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
99.11impose an additional tax of one percent upon the gross receipts from the sale of lodging
99.12for periods of less than 30 days in hotels and motels located in the city. The tax shall be
99.13collected in the same manner as the tax set forth in the Duluth city charter, section 54(d),
99.14paragraph one. The imposition of this tax shall not be subject to voter referendum under
99.15either state law or city charter provisions.
99.16(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
99.17section477A.016 , or any other law, ordinance, or city charter provision to the contrary,
99.18the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half
99.19of one percent on the gross receipts from the sale of lodging for periods of less than
99.2030 days in hotels and motels located in the city. This tax expires when the city council
99.21first determines that the tax imposed under this paragraph, along with the tax imposed
99.22under section 21, paragraph (b), has produced revenues sufficient to pay the debt
99.23service on bonds in a principal amount of no more than $18,000,000, plus issuance and
99.24discount costs, to finance capital improvements to public facilities to support tourism and
99.25recreational activities in that portion of the city west of34th 14th Avenue West and the
99.26area south of and including Skyline Parkway.
99.27EFFECTIVE DATE.This section is effective the day after the governing body of
99.28the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
99.29645.021, subdivisions 2 and 3.
99.30 Sec. 20. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by
99.31Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9,
99.32and Laws 2009, chapter 88, article 4, section 14, is amended to read:
99.33 Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by
99.34subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax and to
100.1pay all or a portion of the expenses of constructing and improving facilities as part of an
100.2urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized
100.3expenses include, but are not limited to, acquiring property and paying relocation expenses
100.4related to the development of Riverfront 2000 and related facilities, and securing or paying
100.5debt service on bonds or other obligations issued to finance the construction of Riverfront
100.62000 and related facilities. For purposes of this section, "Riverfront 2000 and related
100.7facilities" means a civic-convention center, an arena, a riverfront park, a technology center
100.8and related educational facilities, and all publicly owned real or personal property that
100.9the governing body of the city determines will be necessary to facilitate the use of these
100.10facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and
100.11landscaping. It also includes the performing arts theatre and the Southern Minnesota
100.12Women's Hockey Exposition Center, for use by Minnesota State University, Mankato.
100.13 (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and subject
100.14to voter approval at a general election held before December 31, 2018; provided that the
100.15sales tax in the city of North Mankato is also extended at the same general election, the
100.16city may by ordinance also use revenues from taxes authorized under subdivisions 1 and
100.172, up to a maximum of $47,000,000, plus associated bond costs, to pay all or a portion of
100.18the expenses of the following capital projects:
100.19 (1) construction and improvements to regional recreational facilities including
100.20existing hockey and curling rinks, a baseball park, youth athletic fields and facilities, the
100.21municipal swimming pool including improvements to make the pool compliant with the
100.22Americans with Disabilities Act, and indoor regional athletic facilities;
100.23 (2) improvements to flood control and the levee system;
100.24(3) water quality improvement projects in Blue Earth and Nicollet Counties;
100.25(4) expansion of the regional transit building and related multimodal transit
100.26improvements;
100.27(5) regional public safety and emergency communications improvements and
100.28equipment; and
100.29(6) matching funds for improvements to publicly owned regional facilities including
100.30a historic museum, supportive housing, and a senior center.
100.31EFFECTIVE DATE.This section is effective the day after the governing body of
100.32the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
100.33645.021, subdivisions 2 and 3.
101.1 Sec. 21. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by
101.2Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter
101.3366, article 7, section 10, is amended to read:
101.4 Subd. 4. Expiration of taxing authority and expenditure limitation. The
101.5authority granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax
101.6shall expireon at the earlier of when revenues are sufficient to pay off the bonds, including
101.7interest and all other associated bond costs authorized under subdivision 5, or December 31,
101.82022, unless the additional uses under subdivision 3, paragraph (b) or (c), are authorized.
101.9If the additional use allowed in subdivision 3, paragraph (b), is authorized, the taxes expire
101.10at the earlier of when revenues are sufficient to pay off the bonds, including interest and
101.11all other associated bond costs authorized under subdivision 5, or December 31, 2038.
101.12EFFECTIVE DATE.This section is effective the day following final enactment
101.13without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
101.14 Sec. 22. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
101.15 Subd. 5. Bonds. (a) The city of Mankato may issue general obligation bonds of the
101.16city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities,
101.17without election under Minnesota Statutes, chapter 475, on the question of issuance of the
101.18bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000
101.19and related facilities shall not be included in computing any debt limitations applicable
101.20to the city of Mankato, and the levy of taxes required by section475.61 to pay principal
101.21of and interest on the bonds shall not be subject to any levy limitation or be included in
101.22computing or applying any levy limitation applicable to the city.
101.23 (b) The city of Mankato, subject to voter approval at the election required under
101.24subdivision 3, paragraph (b), may issue general obligation bonds of the city in an amount
101.25not to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b),
101.26without election under Minnesota Statutes, chapter 475, on the question of issuance of the
101.27bonds or a tax to pay them. The debt represented by bonds under this paragraph shall not be
101.28included in computing any debt limitations applicable to the city of Mankato, and the levy
101.29of taxes required by Minnesota Statutes, section475.61, to pay principal of and interest on
101.30the bonds, and shall not be subject to any levy limitation or be included in computing or
101.31applying any levy limitation applicable to the city. The city may use tax revenue in excess
101.32of one year's principal interest reserve for intended annual bond payments to pay all or a
101.33portion of the cost of capital improvements authorized in subdivision 3.
102.1EFFECTIVE DATE.This section is effective the day following final enactment
102.2without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
102.3 Sec. 23. Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read:
102.4 Subd. 6. Reverse referendum; authorization of extension. (a) If the Mankato city
102.5council intends to exercise the authority provided by this section, it shall pass a resolution
102.6stating the fact before July 1, 1991. The resolution must be published for two successive
102.7weeks in the official newspaper of the city or, if there is no official newspaper, in a
102.8newspaper of general circulation in the city, together with a notice fixing a date for a public
102.9hearing on the matter. The hearing must be held at least two weeks but not more than four
102.10weeks after the first publication of the resolution. Following the public hearing, the city
102.11may determine to take no further action or adopt a resolution confirming its intention to
102.12exercise the authority. That resolution must also be published in the official newspaper of
102.13the city or, if there is no official newspaper, in a newspaper of general circulation in the
102.14city. If within 30 days after publication of the resolution a petition signed by voters equal
102.15in number to ten percent of the votes cast in the city in the last general election requesting
102.16a vote on the proposed resolution is filed with the county auditor, the resolution is not
102.17effective until it has been submitted to the voters at a general or special election and a
102.18majority of votes cast on the question of approving the resolution are in the affirmative. The
102.19commissioner of revenue shall prepare a suggested form of question to be presented at the
102.20election. The referendum must be held at a special or general election before December 1,
102.211991. This subdivision applies notwithstanding any city charter provision to the contrary.
102.22 (b) If the Mankato city council wishes to extend the taxes authorized under
102.23subdivisions 1 and 2 to fund any of the projects listed in subdivision 3, paragraph (b), the
102.24city must pass a resolution extending the taxes before July 1, 2016. The tax may not be
102.25imposed unless approved by the voters.
102.26EFFECTIVE DATE.This section is effective the day following final enactment
102.27without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
102.28 Sec. 24. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by
102.29Laws 2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter
102.307, article 4, section 4, is amended to read:
102.31 Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes,
102.32section 477A.016, or any other contrary provision of law, ordinance, or city charter, the
102.33city of Hermantown may, by ordinance, impose an additional sales tax of up to one percent
102.34on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur
103.1within the city. The proceeds of the tax imposed under this section must be used to pay
103.2the cost of collection of the tax and to meet the costs, including principal, interest, and
103.3premiums of bonds used in the finance of:
103.4 (1) extending a sewer interceptor line;
103.5 (2) construction of a booster pump station, reservoirs, and related improvements
103.6to the water system;and
103.7 (3) construction of a building containing a police and fire station and an
103.8administrative services facility; and
103.9 (4) construction and equipping of a regional, multiuse wellness center.
103.10(b) If the city imposed a sales tax of only one-half of one percent under paragraph
103.11(a), it may increase the tax to one percent to fund the purposes under paragraph (a)
103.12provided it is approved by the voters at a general election held before December 31, 2012.
103.13(c) The tax imposed in paragraph (a) may only be used to fund projects listed in
103.14paragraph (a), clause (4), if approved by the local voters at the November 8, 2016, general
103.15election. Revenue raised from the tax imposed under this subdivision in every year must
103.16first be used to meet obligations in that year related to the projects in paragraph (a), clauses
103.17(1) to (3), with excess revenues available to fund the projects in paragraph (a), clause (4).
103.18EFFECTIVE DATE.This section is effective the day after the governing body of
103.19the city of Hermantown and its chief clerical officer comply with Minnesota Statutes,
103.20section 645.021, subdivisions 2 and 3.
103.21 Sec. 25. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by
103.22Laws 2006, chapter 259, article 3, section 4, is amended to read:
103.23 Subd. 4. Termination. The tax authorized under this section terminates on March
103.2431, 2026, unless the additional use under subdivision 1, paragraph (a), is approved
103.25as required under subdivision 1, paragraph (c). If the additional project is approved
103.26as required under subdivision 1, paragraph (c), the tax authorized under this section
103.27terminates at the earlier of (1) December 31, 2036, or (2) when the Hermantown City
103.28Council first determines that sufficient funds have been received from the tax to fund the
103.29costs, including bonds and associated bond costs for the uses specified in subdivision 1,
103.30paragraph (a). Any funds remaining after completion of the improvements and retirement
103.31or redemption of the bonds may be placed in the general fund of the city.
103.32EFFECTIVE DATE.This section is effective the day following final enactment
103.33without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
104.1 Sec. 26. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by
104.2Laws 2008, chapter 366, article 7, section 12, is amended to read:
104.3 Subdivision 1. Sales and use tax. (a) Notwithstanding Minnesota Statutes, section
104.4477A.016
, or any other provision of law, ordinance, or city charter, if approved by the city
104.5voters at the first municipal general election held after the date of final enactment of this act
104.6or at a special election held November 2, 1999, the city of Proctor may impose by ordinance
104.7a sales and use tax of up to one-half of one percent for the purposes specified in subdivision
104.83. The provisions of Minnesota Statutes, section297A.99 , govern the imposition,
104.9administration, collection, and enforcement of the tax authorized under this subdivision.
104.10(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
104.11law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional
104.12sales and use tax of up to one-half of one percent as approved by the voters at the
104.13November 4, 2014, general election. The revenues received from the additional tax must
104.14be used for the purposes specified in subdivision 3, paragraph (b).
104.15EFFECTIVE DATE.This section is effective the day after the governing body of
104.16the city of Proctor and its chief clerical officer comply with Minnesota Statutes, section
104.17645.021, subdivisions 2 and 3, but only if the local approval requirement under section
104.1810 is also met.
104.19 Sec. 27. Laws 2008, chapter 366, article 7, section 20, is amended to read:
104.20 Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
104.21 Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
104.22section477A.016 , or any other provision of law, ordinance, or city charter, pursuant to
104.23the approval of the voters on November 7, 2006, the city of North Mankato may impose
104.24by ordinance a sales and use tax of one-half of one percent for the purposes specified
104.25in subdivision 2. The provisions of Minnesota Statutes, section297A.99 , govern the
104.26imposition, administration, collection, and enforcement of the taxes authorized under
104.27this subdivision.
104.28 Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by
104.29subdivision 1 must be used to pay all or part of the capital costs of the following projects:
104.30 (1) the local share of the Trunk Highway 14/County State-Aid Highway 41
104.31interchange project;
104.32 (2) development of regional parks and hiking and biking trails, including
104.33construction of indoor regional athletic facilities;
104.34 (3) expansion of the North Mankato Taylor Library;
104.35 (4) riverfront redevelopment; and
105.1 (5) lake improvement projects.
105.2 The total amount of revenues from the tax in subdivision 1 that may be used to fund
105.3these projects is $6,000,000 plus any associated bond costs.
105.4 (b) If the city extends the tax as authorized under subdivision 2a, the total amount that
105.5may be used to fund these projects is increased by $9,000,000, plus associated bond costs.
105.6 Subd. 2a. Authorization to extend the tax. Notwithstanding Minnesota Statutes,
105.7section 297A.99, subdivision 3, the North Mankato city council may, by resolution, extend
105.8the tax authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus
105.9associated bond costs, to fund the projects in subdivision 2, paragraph (a), if approved by
105.10the voters at a general election held before December 31, 2018; provided that the sales tax
105.11in the city of Mankato is also extended at the same general election.
105.12 Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the
105.13voters at the November 7, 2006 referendum authorizing the imposition of the taxes in
105.14this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and
105.15administrative expenses for the projects described in subdivision 2, paragraph (a), in an
105.16amount that does not exceed $6,000,000. A separate election to approve the bonds under
105.17Minnesota Statutes, section475.58 , is not required.
105.18(b) The city of North Mankato, subject to the referendum in subdivision 2a, allowing
105.19for additional revenue to be spent for the projects in subdivision 2, may issue additional
105.20bonds under Minnesota Statutes, chapter 475, to pay capital and administrative expenses
105.21for those projects in an amount that does not exceed $9,000,000. A separate election to
105.22approve the bonds under Minnesota Statutes, section475.58 , is not required.
105.23(b) (c) The debt represented by the bonds is not included in computing any debt
105.24limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section
105.25475.61
, to pay principal and interest on the bonds is not subject to any levy limitation.
105.26 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when
105.27the city council determines that the amount of revenues received from the taxes to pay for
105.28the projects under subdivision 2, paragraph (a), first equals or exceeds $6,000,000 plus the
105.29additional amount needed to pay the costs related to issuance of bonds under subdivision
105.303, including interest on the bonds, unless the tax is extended as allowed in this section. If
105.31the tax is extended as allowed under the referendum under subdivision 2a, the tax expires
105.32at the earlier of December 31, 2038, or when revenues from the taxes first equal or exceed
105.33$15,000,000 plus the additional amount needed to pay costs related to issuance of bonds
105.34under subdivision 3, including interest. Any funds remaining after completion of the
105.35projects and retirement or redemption of the bonds shall be placed in a capital facilities
106.1and equipment replacement fund of the city. The tax imposed under subdivision 1 may
106.2expire at an earlier time if the city so determines by ordinance.
106.3EFFECTIVE DATE.This section is effective the day after the governing body of
106.4the city of North Mankato and its chief clerical officer comply with Minnesota Statutes,
106.5section 645.021, subdivisions 2 and 3.
106.6 Sec. 28. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
106.7 Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota
106.8Statutes, section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance,
106.9or city charter, and as approved by the voters at a special election on March 7, 2016, the
106.10city of East Grand Forks may impose, by ordinance, a sales and use tax of up to one
106.11percent for the purposes specified in subdivision 2. Except as otherwise provided in this
106.12section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
106.13administration, collection, and enforcement of the tax authorized under this subdivision.
106.14 Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax
106.15authorized under subdivision 1 must be used by the city of East Grand Forks to pay the
106.16costs of collecting and administering the tax and to finance the capital and administrative
106.17costs of improvement to the city public swimming pool. Authorized expenses include,
106.18but are not limited to, paying construction expenses related to the renovation and the
106.19development of these facilities and improvements, and securing and paying debt service
106.20on bonds issued under subdivision 3 or other obligations issued to finance improvement of
106.21the public swimming pool in the city of East Grand Forks
106.22 Subd. 3. Bonding authority. (a) The city of East Grand Forks may issue bonds
106.23under Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the
106.24facilities authorized in subdivision 2. The aggregate principal amount of bonds issued
106.25under this subdivision may not exceed $2,820,000, plus an amount to be applied to the
106.26payment of the costs of issuing the bonds. The bonds may be paid from or secured by
106.27any funds available to the city of East Grand Forks, including the tax authorized under
106.28subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
106.29Statutes, sections 275.60 and 275.61.
106.30(b) The bonds are not included in computing any debt limitation applicable to the
106.31city of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61,
106.32to pay principal and interest on the bonds is not subject to any levy limitation. A separate
106.33election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
107.1 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at
107.2the later of: (1) five years after the tax is first imposed; or (2) when the city council
107.3determines that $2,820,000 has been received from the tax to pay for the cost of the
107.4projects authorized under subdivision 2, plus an amount sufficient to pay the costs related
107.5to issuance of the bonds authorized under subdivision 3, including interest on the bonds.
107.6Any funds remaining after payment of all such costs and retirement or redemption of the
107.7bonds shall be placed in the general fund of the city. The tax imposed under subdivision 1
107.8may expire at an earlier time if the city so determines by ordinance.
107.9EFFECTIVE DATE.This section is effective the day after compliance by the
107.10governing body of the city of East Grand Forks with Minnesota Statutes, section 645.021,
107.11subdivisions 2 and 3.
107.12 Sec. 29. CITY OF MARSHALL; VALIDATION OF PRIOR ACT.
107.13(a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city
107.14of Marshall may approve Laws 2011, First Special Session chapter 7, article 4, section
107.1514, and file its approval with the secretary of state by June 15, 2013. If approved as
107.16authorized under this paragraph, actions undertaken by the city as approved by the voters
107.17on November 6, 2012, and otherwise in accordance with Laws 2011, First Special Session
107.18chapter 7, article 4, section 14, are validated.
107.19(b) Notwithstanding the time limit on the imposition of tax under Laws 2011, First
107.20Special Session chapter 7, article 4, section 14, and subject to local approval under
107.21paragraph (a), the city of Marshall may impose the tax on or before July 1, 2013.
107.22EFFECTIVE DATE.This section is effective the day following final enactment.
107.23 Sec. 30. CERTAIN REIMBURSEMENT AUTHORIZED; CONSIDERED
107.24OPERATING OR CAPITAL EXPENSES.
107.25 Subdivision 1. Reimbursement authorized. (a) An amount equivalent to the taxes
107.26paid under Minnesota Statutes, chapter 297A, and any local taxes administered by the
107.27Department of Revenue, on purchases of tangible personal property, nonresidential
107.28parking services, and lodging, as these terms are defined in Minnesota Statutes, chapter
107.29297A, used and consumed in connection with Super Bowl LII or related events sponsored
107.30by the National Football League or its affiliates, will be reimbursed by the Minnesota
107.31Sports Facilities Authority up to $1,600,000, if made after June 30, 2016, and before
107.32March 1, 2018. Only purchases made by the Minnesota Super Bowl Host Committee, the
108.1National Football League or its affiliates, or their employees or independent contractors,
108.2qualify to be reimbursed under this section.
108.3(b) For purposes of this subdivision:
108.4(1) "employee or independent contractor" means only those employees or
108.5independent contractors that make qualifying purchases that are reimbursed by the
108.6Minnesota Super Bowl Host Committee or the National Football League or its affiliates; and
108.7(2) "related events sponsored by the National Football League or its affiliates"
108.8includes but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate,
108.9NFL Honors, and NFL House.
108.10 Subd. 2. Operating reserve and capital reserve fund. Notwithstanding the
108.11requirements of Minnesota Statutes, section 473J.13, subdivisions 2 and 4, up to
108.12$1,600,000 of the balance in the operating reserve or capital reserve fund may be used for
108.13the purposes of paying reimbursements authorized under subdivision 1.
108.14EFFECTIVE DATE.This section is effective for sales and purchases made after
108.15June 30, 2016, and before March 1, 2018.
108.16 Sec. 31. SEVERABILITY.
108.17If any provision of sections 2 to 5 or the application thereof is held invalid, such
108.18invalidity shall not affect the provisions or applications of the sections that can be given
108.19effect without the invalid provisions or applications.
108.20EFFECTIVE DATE.This section is effective the day following final enactment.
108.21 Sec. 32. EFFECTIVE DATE.
108.22(a) The provisions of sections 2 to 5 are effective at the earlier of:
108.23(1) a decision by the United States Supreme Court modifying its decision in Quill
108.24Corp. v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a
108.25physical presence in the state to collect and remit sales tax; or
108.26(2) July 1, 2019.
108.27(b) Notwithstanding paragraph (a) or the provisions of sections 1 to 4, if a federal
108.28law is enacted authorizing a state to impose a requirement to collect and remit sales tax
108.29on retailers without a physical presence in the state, the commissioner must enforce the
108.30provisions of this section and sections 1 to 4 to the extent allowed under federal law.
108.31(c) The commissioner of revenue shall notify the revisor of statutes when either of
108.32the provisions in paragraph (a) or (b) apply.
109.3 Section 1. Minnesota Statutes 2014, section 296A.01, subdivision 12, is amended to
109.4read:
109.5 Subd. 12. Compressed natural gas or CNG. "Compressed natural gas" or "CNG"
109.6means natural gas, primarily methane, condensed under high pressure and stored in
109.7specially designed storage tanks at between 2,000 and 3,600 pounds per square inch.
109.8For purposes of this chapter, the energy content of CNG is considered to be1,000 900
109.9BTUs per cubic foot.
109.10EFFECTIVE DATE.This section is effective for sales and purchases made after
109.11June 30, 2016.
109.12 Sec. 2. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision
109.13to read:
109.14 Subd. 13a. Dealer of gasoline used as a substitute for aviation gasoline. "Dealer
109.15of gasoline used as a substitute for aviation gasoline" means any person who sells gasoline
109.16on the premises of an airport as defined under section 360.013, subdivision 39, to be
109.17dispensed directly into the fuel tank of an aircraft.
109.18EFFECTIVE DATE.This section is effective for sales and purchases made after
109.19June 30, 2016.
109.20 Sec. 3. Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read:
109.21 Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or
109.22denatured ethanol purchased by:
109.23 (1) a transit system or transit provider receiving financial assistance or
109.24reimbursement under section174.24 ,
256B.0625, subdivision 17 , or
473.384 ;
109.25 (2) providers of transportation to recipients of medical assistance home and
109.26community-based services waivers enrolled in day programs, including adult day care,
109.27family adult day care, day treatment and habilitation, prevocational services, and
109.28structured day services;
109.29(3) an ambulance service licensed under chapter 144E;
109.30(4) providers of medical or dental services by a federally qualified health center,
109.31as defined under title 19 of the Social Security Act, as amended by Section 4161 of the
109.32Omnibus Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a
109.33mobile medical unit;or
110.1 (5) a licensed distributor to be delivered to a terminal for use in blending; or
110.2 (6) a dealer of gasoline used as a substitute for aviation gasoline.
110.3EFFECTIVE DATE.This section is effective for sales and purchases made after
110.4June 30, 2016.
110.5 Sec. 4. Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read:
110.6 Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates:
110.7 (a) Liquefied petroleum gas or propane is taxed at the rate of18.75 cents per gallon.
110.8 (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
110.9 (c) Compressed natural gas is taxed at the rate of$2.174 $1.974 per thousand cubic
110.10feet; or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline
110.11equivalent," as defined by the National Conference on Weights and Measures, is 5.66
110.12pounds of natural gas or 126.67 cubic feet.
110.13 (d) All other special fuel is taxed at the same rate as the gasoline excise tax as
110.14specified in section296A.07, subdivision 2 . The tax is payable in the form and manner
110.15prescribed by the commissioner.
110.16EFFECTIVE DATE.This section is effective for sales and purchases made after
110.17June 30, 2016.
110.18 Sec. 5. Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read:
110.19 Subdivision 1. Gasoline tax imposed. Subject to any refunds or credits there is
110.20imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline received,
110.21sold, stored, or withdrawn from storage in this state and on all gasoline used as a substitute
110.22for aviation gasoline. Aviation gasoline is defined in section296A.01, subdivision 7 .
110.23EFFECTIVE DATE.This section is effective for sales and purchases made after
110.24June 30, 2016.
110.25 Sec. 6. Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read:
110.26 Subd. 3. Exception to tax for aviation use. The provisions of subdivisions 1 and 2
110.27do not apply to gasoline used as a substitute for aviation gasoline, aviation gasoline, or
110.28special fuel purchased and placed in the fuel tanks of an aircraft outside the state, even
110.29though the gasoline may be consumed within this state.
110.30EFFECTIVE DATE.This section is effective for sales and purchases made after
110.31June 30, 2016.
111.1 Sec. 7. Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read:
111.2 Subd. 5. Tax not on consumption. The taxes imposed by subdivisions 1 and 2 are
111.3expressly declared not to be a tax upon consumption of gasoline used as a substitute for
111.4aviation gasoline, aviation gasoline, or special fuel by an aircraft.
111.5EFFECTIVE DATE.This section is effective for sales and purchases made after
111.6June 30, 2016.
111.7 Sec. 8. Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read:
111.8 Subd. 6. Exemptions. The provisions of subdivisions 1 and 2 do not apply to
111.9gasoline used as a substitute for aviation gasoline, aviation gasoline, or jet fuel purchased
111.10by an ambulance service licensed under chapter 144E.
111.11EFFECTIVE DATE.This section is effective for sales and purchases made after
111.12June 30, 2016.
111.13 Sec. 9. Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read:
111.14 Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except
111.15as provided in paragraph (e), on or before the 23rd day of each month, every person
111.16who is required to pay a gasoline tax shall file with the commissioner a report, in the
111.17form and manner prescribed by the commissioner, showing the number of gallons of
111.18petroleum products received by the reporter during the preceding calendar month, and
111.19other information the commissioner may require. A written report is deemed to have
111.20been filed as required in this subdivision if postmarked on or before the 23rd day of the
111.21month in which the tax is payable.
111.22(b) The number of gallons of gasoline must be reported in United States standard
111.23liquid gallons, 231 cubic inches, except that the commissioner may upon written
111.24application and for cause shown permit the distributor to report the number of gallons of
111.25gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application is
111.26granted, all gasoline covered in the application and allowed by the commissioner must
111.27continue to be reported by the distributor on the adjusted basis for a period of one year
111.28from the date of the granting of the application. The number of gallons of petroleum
111.29products other than gasoline must be reported as originally invoiced. Each report must
111.30show separately the number of gallons of aviation gasoline received by the reporter during
111.31each calendar month and the number of gallons of gasoline sold to a dealer of gasoline
111.32used as a substitute for aviation fuel during each calendar month.
112.1(c) Each report must also include the amount of gasoline tax on gasoline received by
112.2the reporter during the preceding month. In computing the tax a deduction of 2.5 percent
112.3of the quantity of gasoline received by a distributor shall be made for evaporation and loss.
112.4At the time of reporting, the reporter shall submit satisfactory evidence that one-third of
112.5the 2.5 percent deduction has been credited or paid to dealers on quantities sold to them.
112.6(d) Each report shall contain a confession of judgment for the amount of the tax
112.7shown due to the extent not timely paid.
112.8(e) Under certain circumstances and with the approval of the commissioner,
112.9taxpayers may be allowed to file reports annually.
112.10EFFECTIVE DATE.This section is effective for sales and purchases made after
112.11June 30, 2016.
112.12 Sec. 10. Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read:
112.13 Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any
112.14person who buys gasoline from a dealer of gasoline used as a substitute for aviation
112.15gasoline, or buys aviation gasoline or special fuel for aircraft use and who has paid the
112.16excise taxes due directly or indirectly through the amount of the tax being included in the
112.17price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly
112.18sells it to any person for use in motor vehicles shall, on or before the 23rd day of the month
112.19following that in which such gasoline or special fuel was so used or sold, report the fact of
112.20the use or sale to the commissioner in the form and manner prescribed by the commissioner.
112.21(b) Any person who buys gasoline other than aviation gasoline and who has paid the
112.22motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being
112.23included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to any
112.24person to be used for the purpose of producing or generating power for propelling aircraft,
112.25or who receives, stores, or withdraws from storage gasoline to be used for that purpose,
112.26shall, on or before the 23rd day of the month following that in which such gasoline was so
112.27sold, stored, or withdrawn from storage, report the fact of the sale, storage, or withdrawal
112.28from storage to the commissioner in the form and manner prescribed by the commissioner.
112.29EFFECTIVE DATE.This section is effective for sales and purchases made after
112.30June 30, 2016.
112.31 Sec. 11. Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read:
112.32 Subdivision 1. Aviation refund requirements. Any person claiming to be entitled
112.33to any refund or credit provided for in subdivision 3 shall receive the refund or credit
113.1upon filing with the commissioner a claim in such form and manner prescribed by the
113.2commissioner. The claim shall set forth, among other things, the total number of gallons
113.3of gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel
113.4for aircraft use upon which the claimant has directly or indirectly paid the excise tax
113.5provided for in this chapter, during the calendar year, which has been received, stored, or
113.6withdrawn from storage by the claimant in this state and not sold or otherwise disposed of
113.7to others. All claims for refunds under this subdivision shall be made on or before April
113.830 following the end of the calendar year for which the refund is claimed.
113.9EFFECTIVE DATE.This section is effective for sales and purchases made after
113.10June 30, 2016.
113.11 Sec. 12. Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read:
113.12 Subd. 2. Claim for refund; aviation tax. (a) Any person who buys gasoline used
113.13as a substitute for aviation gasoline, aviation gasoline, or special fuel for aircraft use and
113.14who has paid the excise taxes directly or indirectly through the amount of the tax being
113.15included in the price, or otherwise, who does not use it in motor vehicles or receive, sell,
113.16store, or withdraw it from storage for the purpose of producing or generating power for
113.17propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing
113.18with the commissioner a claim in the form and manner prescribed by the commissioner.
113.19The claim shall state the total amount of the gasoline used as a substitute for aviation
113.20gasoline, aviation gasoline, or special fuel for aircraft use purchased and used by the
113.21applicant, and shall state when and for what purpose it was used. On being satisfied that
113.22the claimant is entitled to payment, the commissioner shall approve the claim and transmit
113.23it to the commissioner of management and budget. The postmark on the envelope in
113.24which a written claim is mailed determines the date of filing.
113.25(b) If a claim contains an error in preparation in computation or preparation, the
113.26commissioner is authorized to adjust the claim in accordance with the evidence shown on
113.27the claim or other information available to the commissioner.
113.28(c) An applicant who files a claim that is false or fraudulent, is subject to the
113.29penalties provided in section296A.23 for knowingly and willfully making a false claim.
113.30EFFECTIVE DATE.This section is effective for sales and purchases made after
113.31June 30, 2016.
113.32 Sec. 13. Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read:
114.1 Subd. 3. Refund on graduated basis. Any person who has directly or indirectly
114.2paid the excise tax on gasoline used as a substitute for aviation gasoline, aviation gasoline,
114.3or special fuel for aircraft use provided for by this chapter and either paid the airflight
114.4property tax under section270.072 or is an aerial applicator with a category B, general
114.5aerial license, under section 18B.33, shall, as to all such gasoline used as a substitute for
114.6aviation gasoline, aviation gasoline, and special fuel received, stored, or withdrawn from
114.7storage by the person in this state in any calendar year and not sold or otherwise disposed
114.8of to others, or intended for sale or other disposition to others, on which such tax has been
114.9so paid, be entitled to the following graduated reductions in such tax for that calendar
114.10year, to be obtained by means of the following refunds:
114.11(1) on each gallon ofsuch gasoline used as a substitute for aviation gasoline, aviation
114.12gasoline, or special fuel up to 50,000 gallons, all but five cents per gallon;
114.13(2) on each gallon ofsuch gasoline used as a substitute for aviation gasoline, aviation
114.14gasoline, or special fuel above 50,000 gallons and not more than 150,000 gallons, all
114.15but two cents per gallon;
114.16(3) on each gallon ofsuch gasoline used as a substitute for aviation gasoline, aviation
114.17gasoline, or special fuel above 150,000 gallons and not more than 200,000 gallons, all
114.18but one cent per gallon;
114.19(4) on each gallon ofsuch gasoline used as a substitute for aviation gasoline, aviation
114.20gasoline, or special fuel above 200,000, all but one-half cent per gallon.
114.21EFFECTIVE DATE.This section is effective for sales and purchases made after
114.22June 30, 2016.
114.23 Sec. 14. Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read:
114.24 Subdivision 1. Intent; gasoline use. All gasoline received in this state and all
114.25gasoline produced in or brought into this state except aviation gasoline, gasoline sold to a
114.26dealer of gasoline used as a substitute for aviation gasoline, and marine gasoline shall be
114.27determined to be intended for use in motor vehicles in this state.
114.28EFFECTIVE DATE.This section is effective for sales and purchases made after
114.29June 30, 2016.
114.30 Sec. 15. Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read:
114.31 Subd. 8. Airports. The revenues derived from the excise taxes on gasoline used as
114.32a substitute for aviation gasoline, aviation gasoline, and on special fuel received, sold,
114.33stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid into
115.1the state treasury and credited to the state airports fund. There is hereby appropriated such
115.2sums as are needed to carry out the provisions of this subdivision.
115.3EFFECTIVE DATE.This section is effective for sales and purchases made after
115.4June 30, 2016.
115.5 Sec. 16. Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read:
115.6 Subdivision 1. Retention. All distributors, dealers, special fuel dealers, bulk
115.7purchasers, dealers of gasoline used as a substitute for aviation gasoline, and all users of
115.8special fuel shall keep a true and accurate record of all purchases, transfers, sales, and use
115.9of petroleum products and special fuel, including copies of all sales tickets issued, in a form
115.10and manner approved by the commissioner, and shall retain all such records for 3-1/2 years.
115.11EFFECTIVE DATE.This section is effective for sales and purchases made after
115.12June 30, 2016.
115.13 Sec. 17. Minnesota Statutes 2014, section 297E.02, subdivision 1, is amended to read:
115.14 Subdivision 1. Imposition. (a) A tax is imposed on all lawful gambling other than
115.15(1) paper or electronic pull-tab deals or games; (2) tipboard deals or games; (3) electronic
115.16linked bingo; and (4) items listed in section297E.01, subdivision 8 , clauses (4) and (5), at
115.17the rate of 8.5 percent on the gross receipts as defined in section297E.01, subdivision 8 ,
115.18less prizes actually paid.
115.19(b) A tax is imposed on the conduct of paper pull-tabs, at the rate of nine percent of
115.20the gross receipts, less prizes actually paid, of the pull-tab deal. The tax imposed under
115.21this paragraph applies only to paper pull-tabs sold at a bingo hall as defined in section
115.22349.12, subdivision 4a.
115.23(c) The tax imposed by this subdivision is in lieu of the tax imposed by section
115.24297A.62
and all local taxes and license fees except a fee authorized under section
349.16,
115.25subdivision 8 , or a tax authorized under subdivision 5.
115.26(d) The tax imposed under this subdivision is payable by the organization or party
115.27conducting, directly or indirectly, the gambling.
115.28EFFECTIVE DATE.This section is effective for gross receipts received on or
115.29after July 1, 2016.
115.30 Sec. 18. Minnesota Statutes 2015 Supplement, section 297E.02, subdivision 6, is
115.31amended to read:
116.1 Subd. 6. Combined net receipts tax. (a) In addition to the taxes imposed under
116.2subdivision 1, a tax is imposed on the combined net receipts of the organization. As used
116.3in this section, "combined net receipts" is the sum of the organization's gross receipts
116.4from lawful gambling less gross receipts directly derived from the conduct of paper
116.5bingo, raffles, and paddlewheels, as defined in section297E.01, subdivision 8 , and less
116.6the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, and
116.7paddlewheels, for the fiscal year. The combined net receipts of an organization are subject
116.8to a tax computed according to the following schedule:
116.19(b) On or before April 1, 2016, the commissioner shall estimate the total amount of
116.20revenue, including interest and penalties, that will be collected for fiscal year 2016 from
116.21taxes imposed under this chapter. If the amount estimated by the commissioner equals
116.22or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the
116.23rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a
116.24notice to that effect in the State Register and notify each taxpayer by June 1, 2016. If the
116.25rates under this section apply, the combined net receipts of an organization are subject to a
116.26tax computed according to the following schedule:
116.38(c) Gross receipts derived from sports-themed tipboards are exempt from taxation
116.39under this section. For purposes of this paragraph, a sports-themed tipboard means a
116.40sports-themed tipboard as defined in section349.12, subdivision 34 , under which the
116.41winning numbers are determined by the numerical outcome of a professional sporting event.
117.1(d) Paper pull-tabs sold at a bingo hall as defined in section 349.12, subdivision 4a,
117.2are exempt from taxation under this subdivision.
117.3EFFECTIVE DATE.This section is effective July 1, 2016.
117.4 Sec. 19. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision
117.5to read:
117.6 Subd. 6a. Bulk nicotine. "Bulk nicotine" means any vapor product that contains a
117.7solution having a concentration of 50 milligrams of nicotine per milliliter or greater.
117.8EFFECTIVE DATE.This section is effective January 1, 2017.
117.9 Sec. 20. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision
117.10to read:
117.11 Subd. 6b. Consumable material. "Consumable material" means any vapor product
117.12that contains nicotine in a solution having a concentration of less than 50 milligrams
117.13of nicotine per milliliter.
117.14EFFECTIVE DATE.This section is effective January 1, 2017.
117.15 Sec. 21. Minnesota Statutes 2014, section 297F.01, subdivision 19, is amended to read:
117.16 Subd. 19. Tobacco products. (a) "Tobacco products" means any product
117.17containing, made, or derived from tobacco that is intended for human consumption,
117.18whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by
117.19any other means, or any component, part, or accessory of a tobacco product, including,
117.20but not limited to, cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut,
117.21ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist
117.22tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and
117.23sweepings of tobacco, vapor products, and other kinds and forms of tobacco; but does
117.24not include cigarettes as defined in this section. Tobacco products excludes any tobacco
117.25product that has been approved by the United States Food and Drug Administration for
117.26sale as a tobacco cessation product, as a tobacco dependence product, or for other medical
117.27purposes, and is being marketed and sold solely for such an approved purpose.
117.28(b) Except for the imposition of tax under section297F.05, subdivisions 3 and 4,
117.29tobacco products includes a premium cigar, as defined in subdivision 13a.
117.30EFFECTIVE DATE.This section is effective January 1, 2017.
118.1 Sec. 22. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision
118.2to read:
118.3 Subd. 24. Vapor products. "Vapor products" means any noncombustible product
118.4that employs a heating element, power source, electronic circuit, or other electronic,
118.5chemical, or mechanical means, regardless of shape or size, that can be used to produce
118.6vapor from nicotine in a solution or other form. Vapor products includes any electronic
118.7cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device
118.8and any vapor cartridge or other container of bulk nicotine or consumable material in
118.9a solution or other form that is intended to be used with or in an electronic cigarette,
118.10electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.
118.11EFFECTIVE DATE.This section is effective January 1, 2017.
118.12 Sec. 23. Minnesota Statutes 2014, section 297F.05, subdivision 1, is amended to read:
118.13 Subdivision 1. Rates; cigarettes. A tax is imposed upon the sale of cigarettes in this
118.14state, upon having cigarettes in possession in this state with intent to sell, upon any person
118.15engaged in business as a distributor, and upon the use or storage by consumers, at the rate
118.16of141.5 150 mills, or
14.15
118.17EFFECTIVE DATE.This section is effective the day following final enactment.
118.18 Sec. 24. Minnesota Statutes 2014, section 297F.05, subdivision 3, is amended to read:
118.19 Subd. 3. Rates; tobacco products. (a) Except as provided insubdivision
118.20subdivisions 3a and 3b, a tax is imposed upon all tobacco products in this state and upon
118.21any person engaged in business as a distributor, at the rate of 95 percent of the wholesale
118.22sales price of the tobacco products. The tax is imposed at the time the distributor:
118.23(1) brings, or causes to be brought, into this state from outside the state tobacco
118.24products for sale;
118.25(2) makes, manufactures, or fabricates tobacco products in this state for sale in
118.26this state; or
118.27(3) ships or transports tobacco products to retailers in this state, to be sold by those
118.28retailers.
118.29(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a
118.30pack of 20 cigarettes weighing not more than three pounds per thousand, as established
118.31under subdivision 1, is imposed on each container of moist snuff.
118.32For purposes of this subdivision, a "container" means the smallest consumer-size can,
118.33package, or other container that is marketed or packaged by the manufacturer, distributor,
119.1or retailer for separate sale to a retail purchaser. When more than one container is
119.2packaged together, each container is subject to tax.
119.3EFFECTIVE DATE.This section is effective January 1, 2017.
119.4 Sec. 25. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision
119.5to read:
119.6 Subd. 3b. Rates; vapor products. (a) A tax is imposed upon all vapor products in
119.7this state and upon any person engaged in business as a tobacco product distributor. The
119.8tax imposed under this subdivision is imposed at the time the tobacco products distributor:
119.9(1) brings, or causes to be brought, into this state vapor products for sale;
119.10(2) makes, manufactures, or fabricates vapor products in this state, not otherwise
119.11taxed under this subdivision, for sale in this state; or
119.12(3) ships or transports vapor products to retailers in this state to be sold by those
119.13retailers.
119.14(b) For vapor products that contain bulk nicotine, the rate of tax is 300 percent of the
119.15wholesale sales price of the vapor product.
119.16(c) For vapor products that contain consumable material, the rate of tax is 45 percent
119.17of the wholesale sales price of the vapor product.
119.18EFFECTIVE DATE.This section is effective January 1, 2017.
119.19 Sec. 26. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision
119.20to read:
119.21 Subd. 4b. Use tax; vapor products. A tax is imposed upon the use or storage by
119.22consumers of all vapor products in this state, and upon such consumers, at the rate of 300
119.23percent of the wholesale sales price of a vapor product containing bulk nicotine, and 45
119.24percent of the wholesale sales price of a vapor product containing consumable material.
119.25EFFECTIVE DATE.This section is effective January 1, 2017.
119.26 Sec. 27. Minnesota Statutes 2014, section 297H.04, subdivision 2, is amended to read:
119.27 Subd. 2. Rate. (a) Commercial generators that generate nonmixed municipal
119.28solid waste shall pay a solid waste management tax of 60 cents per noncompacted
119.29cubic yard of periodic waste collection capacity purchased by the generator, based on
119.30the size of the container for the nonmixed municipal solid waste, the actual volume,
119.31or the weight-to-volume conversion schedule in paragraph (c). However, the tax must
119.32be calculated by the waste management service provider using the same method for
120.1calculating the waste management service fee so that both are calculated according to
120.2container capacity, actual volume, or weight.
120.3(b) Notwithstanding section297H.02 , a residential generator that generates
120.4nonmixed municipal solid waste shall pay a solid waste management tax in the same
120.5manner as provided in paragraph (a).
120.6(c) The weight-to-volume conversion schedule for:
120.7(1) construction debris as defined in section115A.03, subdivision 7 , is one ton
120.8equals
3.33 cubic yards, or $2 per ton equal to 60 cents per cubic yard. The commissioner
120.9of revenue, after consultation with the commissioner of the Pollution Control Agency,
120.10shall determine and may publish by notice a conversion schedule for construction debris;
120.11(2) industrial waste as defined in section115A.03, subdivision 13a , is equal to
120.1260 cents per cubic yard. The commissioner of revenue after consultation with the
120.13commissioner of the Pollution Control Agency, shall determine, and may publish by
120.14notice, a conversion schedule for various industrial wastes; and
120.15(3) infectious waste as defined in section116.76, subdivision 12 , and pathological
120.16waste as defined in section116.76, subdivision 14 , is 150 pounds equals one cubic yard, or
120.1760 cents per 150 pounds.
120.18EFFECTIVE DATE.This section is effective for sales and purchases made after
120.19June 30, 2016.
120.20 Sec. 28. Minnesota Statutes 2014, section 349.12, is amended by adding a subdivision
120.21to read:
120.22 Subd. 4a. Bingo hall. (a) "Bingo hall" means the premises on which an organization
120.23licensed under this chapter regularly conducts bingo if:
120.24(1) more than 50 percent of the organization's gross receipts from lawful gambling
120.25in the prior calendar year were attributable to the conduct of bingo or the organization had
120.26no receipts from lawful gambling in that year; or
120.27(2) no other organization conducts lawful gambling on the premises.
120.28(b) For purposes of this subdivision, "bingo" does not include a linked bingo game
120.29as defined in this section.
120.30EFFECTIVE DATE.This section is effective July 1, 2016.
120.31 Sec. 29. REPEALER.
120.32(a) Minnesota Statutes 2014, section 297F.05, subdivision 1a, is repealed.
120.33(b) Minnesota Rules, part 8125.1300, subpart 3, is repealed.
121.1EFFECTIVE DATE.This section is effective the day following final enactment.
121.4 Section 1. Minnesota Statutes 2014, section 298.24, is amended by adding a
121.5subdivision to read:
121.6 Subd. 5. TEDF; deposits redirected. (a) For concentrates produced by a plant
121.7subject to a reimbursement agreement dated September 9, 2008, by and among Itasca
121.8County, Essar Global Limited, and Minnesota Steel Industries LLC, the provisions of
121.9sections 298.227 and 298.28, subdivision 9a, do not apply to the plant's production.
121.10(b) All amounts not deposited in the taconite economic development fund as a
121.11result of paragraph (a) must be deposited in the Douglas J. Johnson economic protection
121.12trust fund created under section 298.292.
121.13(c) The provisions of this subdivision expire upon certification by the commissioner
121.14of employment and economic development that all requirements of the reimbursement
121.15agreement, as specified in paragraph (a), are satisfied.
121.16EFFECTIVE DATE.This section is effective the day following final enactment.
121.17 Sec. 2. Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read:
121.18 Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed
121.19under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid
121.20account to be distributed as provided in section298.282 .
121.21 (b) An amount must be allocated to towns or cities that is annually certified by
121.22the county auditor of a county containing a taconite tax relief area as defined in section
121.23273.134, paragraph (b)
, within which there is (1) an organized township if, as of January
121.242, 1982, more than 75 percent of the assessed valuation of the township consists of iron
121.25ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation
121.26of the city consists of iron ore.
121.27 (c) The amount allocated under paragraph (b) will be the portion of a township's or
121.28city's certified levy equal to the proportion of (1) the difference between 50 percent of
121.29January 2, 1982, assessed value in the case of a township and 50 percent of the January 2,
121.301980, assessed value in the case of a city and its current assessed value to (2) the sum of
121.31its current assessed value plus the difference determined in (1), provided that the amount
121.32distributed shall not exceed $55 per capita in the case of a township or $75 per capita in
121.33the case of a city. For purposes of this limitation, population will be determined according
121.34to the 1980 decennial census conducted by the United States Bureau of the Census. If the
122.1current assessed value of the township exceeds 50 percent of the township's January 2,
122.21982, assessed value, or if the current assessed value of the city exceeds 50 percent of the
122.3city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this
122.4paragraph, "assessed value," when used in reference to years other than 1980 or 1982,
122.5means the appropriate net tax capacities multiplied by 10.2.
122.6 (d) In addition to other distributions under this subdivision,three 3.25 cents per
122.7taxable ton for distributions in2009 2017 and subsequent years must be allocated for
122.8distribution to (1) towns that are entirely located within the taconite tax relief area defined
122.9in section273.134 , paragraph (b); and (2) the following unorganized territories in St.
122.10Louis County and Itasca County: 56-17; 58-22; 59-16; 59-21; 60-18; and 60-19. For
122.11distribution in 2010 through 2014 and for distribution distributions in 2018 and subsequent
122.12years, thethree-cent 3.25-cent amount must be annually increased in the same proportion
122.13as the increase in the implicit price deflator as provided in section298.24, subdivision 1 .
122.14The amount available under this paragraphwill must be distributed to eligible towns and
122.15eligible unorganized territories on a per capita basis, provided that no town or unorganized
122.16territory may receive more than $50,000 in any year under this paragraph. Any amount of
122.17the distribution that exceeds the $50,000 limitation for a town or unorganized territory
122.18under this paragraph must be redistributed on a per capita basis among the other eligible
122.19towns and eligible unorganized territories, to whose distributions do not exceed $50,000.
122.20The amount available to unorganized territories in St. Louis County and Itasca County
122.21may be held by the county and combined for public infrastructure projects for the specified
122.22unorganized territories.
122.23EFFECTIVE DATE.This section is effective for distributions beginning in 2017
122.24and thereafter.
122.25 Sec. 3. Minnesota Statutes 2014, section 298.28, subdivision 5, is amended to read:
122.26 Subd. 5. Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through
122.272023, and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated
122.28to counties to be distributed, based upon certification by the commissioner of revenue,
122.29under paragraphs (b) to (d).
122.30 (b) 10.525 cents per taxable ton shall be distributed to the county in which the
122.31taconite is mined or quarried or in which the concentrate is produced, less any amount
122.32which is to be distributed pursuant to paragraph (c). The apportionment formula prescribed
122.33in subdivision 2 is the basis for the distribution.
122.34 (c)If 1.0 cent per taxable ton of the tax distributed to the counties pursuant to
122.35paragraph (b) shall be paid to a county that received a distribution under this section
123.1in 2000 because there was located in the county an electric power plant owned by and
123.2providing the primary source of power for a taxpayer mining and concentrating taconite
123.3is located in a different county other than the county in which the mining and the
123.4concentrating processes are conducted, one cent per taxable ton of the tax distributed to
123.5the counties pursuant to paragraph (b) and imposed on and collected from such taxpayer
123.6shall be paid to the county in which the power plant is located.
123.7 (d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525
123.8cents per taxable ton for distributions beginning in 2024, shall be paid to the county from
123.9which the taconite was mined, quarried or concentrated to be deposited in the county road
123.10and bridge fund. If the mining, quarrying and concentrating, or separate steps in any of
123.11those processes are carried on in more than one county, the commissioner shall follow the
123.12apportionment formula prescribed in subdivision 2.
123.13EFFECTIVE DATE.This section is effective the day following final enactment.
123.14 Sec. 4. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:
123.15 Subd. 7a. Iron Range school consolidation and cooperatively operated school
123.16account. The following amounts must be allocated to the Iron Range Resources and
123.17Rehabilitation Board to be deposited in the Iron Range school consolidation and
123.18cooperatively operated school account that is hereby created:
123.19(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
123.20imposed under section298.24 ; and (ii) for distributions beginning in 2024, five cents per
123.21taxable ton of the tax imposed under section298.24 ;
123.22(2) the amount as determined under section298.17 , paragraph (b), clause (3);
123.23(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
123.24proceeds attributable to the increase in the implicit price deflator as provided in section
123.25298.24, subdivision 1
, with the remaining one-third to be distributed to the Douglas J.
123.26Johnson economic protection trust fund;
123.27(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the
123.28increased tax proceeds attributable to the increase in the implicit price deflator as provided
123.29in section298.24, subdivision 1 , for distribution years 2015 and 2016, with the remaining
123.30one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
123.31(iii) for distributions in 2017 and thereafter, an amount equal to two-thirds of the
123.32sum of the increased tax proceeds attributable to the increase in the implicit price deflator
123.33as provided in section298.24, subdivision 1 , for distribution years 2015, 2016, and
123.342017, with the remaining one-third to be distributed to the Douglas J. Johnson economic
123.35protection trust fund; and
124.1(4) any other amount as provided by law.
124.2Expenditures from this account shall be made only to provide disbursements to
124.3assist school districts with the payment of bonds that were issued for qualified school
124.4projects, or for any other school disbursement as approved by the Iron Range Resources
124.5and Rehabilitation Board. For purposes of this section, "qualified school projects" means
124.6school projects within the taconite assistance area as defined in section273.1341 , that were
124.7(1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner
124.8of education pursuant to section123B.71 .
124.9Beginning in fiscal year 2019, the disbursement to school districts for payments for
124.10bonds issued under section123A.482 , subdivision 9, must be increased each year to
124.11offset any reduction in debt service equalization aid that the school district qualifies for in
124.12that year, under section123B.53, subdivision 6 , compared with the amount the school
124.13district qualified for in fiscal year 2018.
124.14No expenditure under this section shall be made unless approved by seven members
124.15of the Iron Range Resources and Rehabilitation Board.
124.16EFFECTIVE DATE.This section is effective for distributions beginning in 2017
124.17and thereafter.
124.20 Section 1. Minnesota Statutes 2014, section 469.1763, subdivision 1, is amended to read:
124.21 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
124.22have the meanings given.
124.23(b) "Activities" means acquisition of property, clearing of land, site preparation, soils
124.24correction, removal of hazardous waste or pollution, installation of utilities, construction
124.25of public or private improvements, and other similar activities, but only to the extent that
124.26tax increment revenues may be spent for such purposes under other law.
124.27(c) "Third party" means an entity other than (1) the person receiving the benefit
124.28of assistance financed with tax increments, or (2) the municipality or the development
124.29authority or other person substantially under the control of the municipality.
124.30(d) "Revenues derived from tax increments paid by properties in the district" means
124.31only tax increment as defined in section469.174, subdivision 25 , clause (1), and does
124.32not include tax increment as defined in section469.174, subdivision 25 , clauses (2),
124.33(3), and (4) to (5).
124.34EFFECTIVE DATE.This section is effective the day following final enactment.
125.1 Sec. 2. Minnesota Statutes 2014, section 469.1763, subdivision 2, is amended to read:
125.2 Subd. 2. Expenditures outside district. (a) For each tax increment financing
125.3district, an amount equal to at least 75 percent of the total revenue derived from tax
125.4increments paid by properties in the district must be expended on activities in the district
125.5or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
125.6in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
125.7For districts, other than redevelopment districts for which the request for certification
125.8was made after June 30, 1995, the in-district percentage for purposes of the preceding
125.9sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
125.10increments paid by properties in the district may be expended, through a development fund
125.11or otherwise, on activities outside of the district but within the defined geographic area of
125.12the project except to pay, or secure payment of, debt service on credit enhanced bonds.
125.13For districts, other than redevelopment districts for which the request for certification was
125.14made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
125.1520 percent. Therevenue revenues derived from tax increments for paid by properties in
125.16the district that are expended on costs under section469.176, subdivision 4h , paragraph
125.17(b), may be deducted first before calculating the percentages that must be expended within
125.18and without the district.
125.19 (b) In the case of a housing district, a housing project, as defined in section469.174,
125.20subdivision 11 , is an activity in the district.
125.21 (c) All administrative expenses are for activities outside of the district, except that
125.22if the only expenses for activities outside of the district under this subdivision are for
125.23the purposes described in paragraph (d), administrative expenses will be considered as
125.24expenditures for activities in the district.
125.25 (d) The authority may elect, in the tax increment financing plan for the district,
125.26to increase by up to ten percentage points the permitted amount of expenditures for
125.27activities located outside the geographic area of the district under paragraph (a). As
125.28permitted by section469.176, subdivision 4k , the expenditures, including the permitted
125.29expenditures under paragraph (a), need not be made within the geographic area of the
125.30project. Expenditures that meet the requirements of this paragraph are legally permitted
125.31expenditures of the district, notwithstanding section469.176, subdivisions 4b, 4c, and 4j .
125.32To qualify for the increase under this paragraph, the expenditures must:
125.33 (1) be used exclusively to assist housing that meets the requirement for a qualified
125.34low-income building, as that term is used in section 42 of the Internal Revenue Code; and
126.1 (2) not exceed the qualified basis of the housing, as defined under section 42(c) of
126.2the Internal Revenue Code, less the amount of any credit allowed under section 42 of
126.3the Internal Revenue Code; and
126.4 (3) be used to:
126.5 (i) acquire and prepare the site of the housing;
126.6 (ii) acquire, construct, or rehabilitate the housing; or
126.7 (iii) make public improvements directly related to the housing; or
126.8(4) be used to develop housing:
126.9(i) if the market value of the housing does not exceed the lesser of:
126.10(A) 150 percent of the average market value of single-family homes in that
126.11municipality; or
126.12(B) $200,000 for municipalities located in the metropolitan area, as defined in
126.13section473.121 , or $125,000 for all other municipalities; and
126.14(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
126.15demolition of existing structures, site preparation, and pollution abatement on one or
126.16more parcels, if the parcel contains a residence containing one to four family dwelling
126.17units that has been vacant for six or more months and is in foreclosure as defined in
126.18section325N.10, subdivision 7 , but without regard to whether the residence is the owner's
126.19principal residence, and only after the redemption period has expired.
126.20 (e) For a district created within a biotechnology and health sciences industry zone
126.21as defined in Minnesota Statutes 2012, section469.330, subdivision 6 , or for an existing
126.22district located within such a zone, tax increment derived from such a district may be
126.23expended outside of the district but within the zone only for expenditures required for the
126.24construction of public infrastructure necessary to support the activities of the zone, land
126.25acquisition, and other redevelopment costs as defined in section469.176, subdivision 4j .
126.26These expenditures are considered as expenditures for activities within the district. The
126.27authority provided by this paragraph expires for expenditures made after the later of (1)
126.28December 31, 2015, or (2) the end of the five-year period beginning on the date the district
126.29was certified, provided that date was before January 1, 2016.
126.30(f) The authority under paragraph (d), clause (4), expires on December 31, 2016.
126.31Increments may continue to be expended under this authority after that date, if they are
126.32used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
126.33(a), if December 31, 2016, is considered to be the last date of the five-year period after
126.34certification under that provision.
126.35EFFECTIVE DATE.This section is effective the day following final enactment.
127.1 Sec. 3. Minnesota Statutes 2014, section 469.1763, subdivision 3, is amended to read:
127.2 Subd. 3. Five-year rule. (a) Revenues derived from tax increments paid by
127.3properties in the district are considered to have been expended on an activity within the
127.4district under subdivision 2 only if one of the following occurs:
127.5(1) before or within five years after certification of the district, the revenues are
127.6actually paid to a third party with respect to the activity;
127.7(2) bonds, the proceeds of which must be used to finance the activity, are issued and
127.8sold to a third party before or within five years after certification, the revenues are spent
127.9to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
127.10reasonably expected to be spent before the end of the later of (i) the five-year period, or
127.11(ii) a reasonable temporary period within the meaning of the use of that term under section
127.12148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
127.13or replacement fund;
127.14(3) binding contracts with a third party are entered into for performance of the
127.15activity before or within five years after certification of the district and the revenues are
127.16spent under the contractual obligation;
127.17(4) costs with respect to the activity are paid before or within five years after
127.18certification of the district and the revenues are spent to reimburse a party for payment
127.19of the costs, including interest on unreimbursed costs; or
127.20(5) expenditures are made for housing purposes as permitted by subdivision 2,
127.21paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
127.22by subdivision 2, paragraph (e).
127.23(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
127.24the original refunded bonds meet the requirements of paragraph (a), clause (2).
127.25(c) For a redevelopment district or a renewal and renovation district certified after
127.26June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a)
127.27are extended to ten years after certification of the district. For a redevelopment district
127.28certified after April 20, 2009, and before June 30, 2012, the five-year periods described in
127.29paragraph (a) are extended to eight years after certification of the district. This extension is
127.30provided primarily to accommodate delays in development activities due to unanticipated
127.31economic circumstances.
127.32EFFECTIVE DATE.This section is effective the day following final enactment.
127.33 Sec. 4. Minnesota Statutes 2014, section 469.178, subdivision 7, is amended to read:
128.1 Subd. 7. Interfund loans. (a) The authority or municipality may advance or loan
128.2money to finance expenditures under section469.176, subdivision 4 , from its general fund
128.3or any other fund under which it has legal authority to do so.
128.4 (b) Not later than 60 days after money is transferred, advanced, or spent, whichever
128.5is earliest, the loan or advance must be authorized, by resolution of the governing body or
128.6of the authority, whichever has jurisdiction over the fund from which the advance or loan
128.7is authorized, before money is transferred, advanced, or spent, whichever is earliest.
128.8 (c) The resolution may generally grant to the municipality or the authority the power
128.9to make interfund loans under one or more tax increment financing plans or for one or
128.10more districts. The resolution may be adopted before or after the adoption of the tax
128.11increment financing plan or the creation of the tax increment financing district from which
128.12the advance or loan is to be repaid.
128.13 (d) The terms and conditions for repayment of the loan must be provided in
128.14writingand. The written terms and conditions may be in any form, but must include, at
128.15a minimum, the principal amount, the interest rate, and maximum term. Written terms
128.16may be modified or amended in writing by the municipality or the authority before the
128.17latest decertification of any tax increment financing district from which the interfund loan
128.18is to be repaid. The maximum rate of interest permitted to be charged is limited to the
128.19greater of the rates specified under section270C.40 or
549.09 as of the date the loan or
128.20advance is authorized, unless the written agreement states that the maximum interest rate
128.21will fluctuate as the interest rates specified under section270C.40 or
549.09 are from time
128.22to time adjusted. Loans or advances may be structured as draw-down or line-of-credit
128.23obligations of the lending fund.
128.24 (e) The authority shall report in the annual report submitted pursuant to section
128.25469.175, subdivision 6:
128.26 (1) the amount of any interfund loan or advance made in a calendar year; and
128.27 (2) any amendment of an interfund loan or advance made in a calendar year.
128.28EFFECTIVE DATE.This section is effective the day following final enactment
128.29and applies to all districts, regardless of when the request for certification was made.
128.30 Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:
128.31 Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
128.32financing plan for a district, the rules under this section apply to a redevelopment district,
128.33renewal and renovation district, economic development district, soil condition district,
128.34or a soil deficiency district established by the city or a development authority of the city
128.35in the project area.
129.1 (b) Prior to or upon the adoption of the first tax increment plan subject to the special
129.2rules under this subdivision, the city must find by resolution that parcels consisting of at
129.3least 80 percent of the acreage of the project area (excluding street and railroad right of
129.4way) are characterized by one or more of the following conditions:
129.5 (1) peat or other soils with geotechnical deficiencies that impair development of
129.6residential or commercial buildings or infrastructure;
129.7 (2) soils or terrain that requires substantial filling in order to permit the development
129.8of commercial or residential buildings or infrastructure;
129.9 (3) landfills, dumps, or similar deposits of municipal or private waste;
129.10 (4) quarries or similar resource extraction sites;
129.11 (5) floodway; and
129.12 (6) substandard buildings within the meaning of Minnesota Statutes, section
129.13469.174, subdivision 10
.
129.14 (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to
129.15be characterized by the relevant condition if at least 70 percent of the area of the parcel
129.16contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is
129.17deemed to be characterized by substandard buildings if the buildings occupy at least 30
129.18percent of the area of the parcel.
129.19 (d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6,
129.20is extended to nine years for any district. The five-year rule under Minnesota Statutes,
129.21section469.1763, subdivision 3 , is extended to ten years for any district, and section
129.22469.1763, subdivision 4
, does not apply to any district.
129.23 (e) Notwithstanding anything to the contrary in section469.1763, subdivision 2 ,
129.24paragraph (a), not more than 80 percent of the total revenue derived from tax increments
129.25paid by properties in any district (measured over the life of the district) may be expended
129.26on activities outside the district but within the project area.
129.27 (f) For a soil deficiency district:
129.28 (1) increments may be collected through 20 years after the receipt by the authority of
129.29the first increment from the district; and
129.30 (2) except as otherwise provided in this subdivision, increments may be used only to:
129.31 (i) acquire parcels on which the improvements described in item (ii) will occur;
129.32 (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
129.33additional cost of installing public improvements directly caused by the deficiencies; and
129.34 (iii) pay for the administrative expenses of the authority allocable to the district.
130.1 (g) Increments spent for any infrastructure costs, whether inside a district or outside
130.2a district but within the project area, are deemed to satisfy the requirements of paragraph
130.3(f) and Minnesota Statutes, section469.176, subdivisions 4b, 4c, and 4j.
130.4 (h) Increments from any district may not be used to pay the costs of landfill closure or
130.5public infrastructure located on the following parcels within the plat known as Burnsville
130.6Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.
130.7 (i) The authority to approve tax increment financing plans to establish tax increment
130.8financing districts under this section expires on December 31,2018 2020.
130.9EFFECTIVE DATE.This section is effective upon approval by the governing body
130.10of the city of Burnsville and compliance with the requirements of Minnesota Statutes,
130.11section 645.021.
130.12 Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter
130.13382, section 84, is amended to read:
130.14 Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT
130.15FINANCING DISTRICT; SPECIAL RULES.
130.16(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and
130.17the governing body of the city of Duluth approves the plan for the tax increment financing
130.18district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020;
130.19010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090;
130.20010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140;
130.21010-2730-00160; 010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320;
130.22010-2746-01250; 010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440;
130.23010-2746-1380; 010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520;
130.24010-2746-01530; 010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570;
130.25010-2746-01580; 010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570;
130.26010-3300-04580; 010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year
130.27rule under Minnesota Statutes, section469.1763, subdivision 3 , that activities must be
130.28undertaken within a five-year period from the date of certification of the tax increment
130.29financing district, must be considered to be met if the activities are undertaken within five
130.30years after the date all qualifying parcels are delisted from the Federal Superfund list.
130.31(b) The requirements of Minnesota Statutes, section469.1763, subdivision 4 ,
130.32beginning in the sixth year following certification of the district requirement, will begin
130.33in the sixth year following the date all qualifying parcels are delisted from the Federal
130.34Superfund list.
131.1(c) The action required under Minnesota Statutes, section469.176 , subdivision 6,
131.2are satisfied if the action is commenced within four years after the date all qualifying
131.3parcels are delisted from the Federal Superfund list and evidence of the action required is
131.4submitted to the county auditor by February 1 of the fifth year following the year in which
131.5all qualifying parcels are delisted from the Federal Superfund list.
131.6(d) For purposes of this section, "qualifying parcels" means United States Steel
131.7parcels listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part
131.8of the USS Site (USEPA OU 02) that are included in the tax increment financing district.
131.9(e) In addition to the reporting requirements of Minnesota Statutes, section469.175,
131.10subdivision 5 , the Seaway Port Authority of Duluth shall report the status of all parcels
131.11listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status report
131.12must show the parcel numbers, the listed or delisted status, and if delisted, the delisting date.
131.13(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other
131.14law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan
131.15program before approval of the tax increment financing plan for or the establishment of
131.16the district authorized by this section. The authority may make loans under this program
131.17and the proceeds of the loans may be used for any permitted use of increments under
131.18this law or Minnesota Statutes, section 469.176, for the district, and may be repaid with
131.19increments from the district established under this section. This subdivision applies to any
131.20action authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.
131.21EFFECTIVE DATE.This section is effective the day after the governing body of
131.22the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
131.23645.021, subdivision 3.
131.24 Sec. 7. Laws 2014, chapter 308, article 6, section 9, is amended to read:
131.25 Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING
131.26DISTRICT.
131.27 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
131.28have the meanings given them.
131.29(b) "City" means the city of Maple Grove.
131.30(c) "Project area" means all or a portion of the area in the city commencing at a point
131.31130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of
131.32Section 23, Township 119, Range 22, Hennepin County, said point being on the easterly
131.33right-of-way line of Hemlock Lane; thence northerly along said easterly right-of-way line
131.34of Hemlock Lane to a point on the west line of the east one-half of the Southeast Quarter of
131.35section 23, thence south along said west line a distance of 1,200 feet; thence easterly to the
132.1east line of Section 23, 1,030 feet North from the southeast corner thereof; thence South
132.274 degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees
132.3West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line
132.4of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of
132.5the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795
132.6feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of
132.7Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the
132.8Northwest Quarter of Section 24; thence West along said south line to the east right-of-way
132.9line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to
132.10the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence
132.11East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan
132.12Industrial Park 5th Addition; thence South along the east line of said Outlot A and its
132.13southerly extension to the south right-of-way line of County State-Aid Highway (CSAH)
132.14109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the
132.15Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east
132.16line to the north line of the South Half of the Northeast Quarter of Section 24; thence East
132.17along said north line to the westerly right-of-way line of Jefferson Highway North; thence
132.18southerly along the westerly right-of-way line of Jefferson Highway to the centerline of
132.19CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane
132.20North to the westerly extension of the north line of Outlot A, Park North Fourth Addition;
132.21thence easterly along the north line of Outlot A, Park North Fourth Addition to the
132.22northeast corner of said Outlot A; thence southerly along the east line of said Outlot A
132.23to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1,
132.24Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway
132.25169; thence southerly, southwesterly, westerly, and northwesterly along the westerly
132.26right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate
132.27694 to its intersection with the southerly extension of the easterly right-of-way line of
132.28Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
132.29Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
132.30westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
132.31and there terminating, provided that the project area includes the rights-of-way for all
132.32present and future highway interchanges abutting the area described in this paragraph, and
132.33may include any additional property necessary to cause the property included in the tax
132.34increment financing district to consist of complete parcels.
133.1(d) "Soil deficiency district" means a type of tax increment financing district
133.2consisting of a portion of the project area in which the city finds by resolution that the
133.3following conditions exist:
133.4(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
133.5the district require substantial filling, grading, or other physical preparation for use; and
133.6(2) the estimated cost of the physical preparation under clause (1), but excluding
133.7costs directly related to roads as defined in Minnesota Statutes, section160.01 , and
133.8local improvements as described in Minnesota Statutes, sections429.021, subdivision 1 ,
133.9clauses (1) to (7), (11), and (12), and430.01 , exceeds the fair market value of the land
133.10before completion of the preparation.
133.11 Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
133.12financing plan for a district, the rules under this section apply to a redevelopment
133.13district, renewal and renovation district, soil condition district, or soil deficiency district
133.14established by the city or a development authority of the city in the project area.
133.15(b) Prior to or upon the adoption of the first tax increment plan subject to the special
133.16rules under this subdivision, the city must find by resolution that parcels consisting
133.17of at least 80 percent of the acreage of the project area, excluding street and railroad
133.18rights-of-way, are characterized by one or more of the following conditions:
133.19(1) peat or other soils with geotechnical deficiencies that impair development of
133.20commercial buildings or infrastructure;
133.21(2) soils or terrain that require substantial filling in order to permit the development
133.22of commercial buildings or infrastructure;
133.23(3) landfills, dumps, or similar deposits of municipal or private waste;
133.24(4) quarries or similar resource extraction sites;
133.25(5) floodway; and
133.26(6) substandard buildings, within the meaning of Minnesota Statutes, section
133.27469.174, subdivision 10
.
133.28(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by
133.29the relevant condition if at least 70 percent of the area of the parcel contains the relevant
133.30condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
133.31substandard buildings if substandard buildings occupy at least 30 percent of the area
133.32of the parcel.
133.33(d) The five-year rule under Minnesota Statutes, section469.1763, subdivision 3 ,
133.34is extended to eight years for any district, and Minnesota Statutes, section469.1763,
133.35subdivision 4 , does not apply to any district.
134.1(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section
134.2469.1763, subdivision 2
, paragraph (a), not more than 40 percent of the total revenue
134.3derived from tax increments paid by properties in any district, measured over the life of
134.4the district, may be expended on activities outside the district but within the project area.
134.5(f) For a soil deficiency district:
134.6(1) increments may be collected through 20 years after the receipt by the authority of
134.7the first increment from the district;
134.8(2) increments may be used only to:
134.9(i) acquire parcels on which the improvements described in item (ii) will occur;
134.10(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
134.11additional cost of installing public improvements directly caused by the deficiencies; and
134.12(iii) pay for the administrative expenses of the authority allocable to the district; and
134.13(3) any parcel acquired with increments from the district must be sold at no less
134.14than their fair market value.
134.15(g) Increments spent for any infrastructure costs, whether inside a district or outside
134.16a district but within the project area, are deemed to satisfy the requirements of Minnesota
134.17Statutes, section469.176, subdivision 4j .
134.18(h) The authority to approve tax increment financing plans to establish tax increment
134.19financing districts under this section expires June 30, 2020.
134.20(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
134.21increments from a soil deficiency district to acquire parcels and for other infrastructure
134.22costs either inside or outside of the district, but within the project area, if the acquisition or
134.23infrastructure is for a qualified development. For purposes of this paragraph, a development
134.24is a qualified development only if all of the following requirements are satisfied:
134.25(1) the city finds, by resolution, that the land acquisition and infrastructure are
134.26undertaken primarily to serve the development;
134.27(2) the city has a binding, written commitment and adequate financial assurances
134.28from the developer that the development will be constructed; and
134.29(3) the development does not consist of retail trade or housing improvements.
134.30EFFECTIVE DATE.This section is effective upon approval by the governing
134.31body of the city of Maple Grove and its compliance with the requirements of Minnesota
134.32Statutes, section 645.021.
134.33 Sec. 8. CITY OF ANOKA; TIF DISTRICT.
134.34For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
134.35the city of Anoka's Greens of Anoka redevelopment tax increment financing district is
135.1deemed to be certified on June 29, 2012, rather than its actual certification date of July 2,
135.22012, and the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4,
135.3apply as if the district were certified on that date.
135.4EFFECTIVE DATE.This section is effective upon approval by the governing body
135.5of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
135.6645.021, subdivisions 2 and 3.
135.7 Sec. 9. CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
135.8Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision
135.93, the chief clerical officer of the city of Edina may file the city's certificate of its approval
135.10of Laws 2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the certificate
135.11is so filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3,
135.12are otherwise complied with, the special law is deemed approved, and all actions taken
135.13by the city prior to the effective date of this section in reliance on Laws 2014, chapter
135.14308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article
135.156, section 8, and this act.
135.16EFFECTIVE DATE.This section is effective June 30, 2016, without local approval
135.17as an amendment to the provisions of Laws 2014, chapter 308, article 6, section 8.
135.18 Sec. 10. CITY OF COON RAPIDS; TAX INCREMENT FINANCING.
135.19Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision
135.201b, or any other law to the contrary, the city of Coon Rapids may collect tax increment
135.21from District 6-1 Port Riverwalk through December 31, 2038.
135.22EFFECTIVE DATE.This section is effective upon compliance by the governing
135.23bodies of the city of Coon Rapids, Anoka County, and Independent School District No.
135.2411 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and
135.25645.021, subdivision 3.
135.26 Sec. 11. CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING.
135.27The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that
135.28activities must be undertaken within a five-year period from the date of certification of
135.29a tax increment financing district, is considered to be met for Tax Increment Financing
135.30District No. 1-12 (Gateway North), administered by the Cottage Grove Economic
135.31Development Authority, if the activities are undertaken prior to January 1, 2017.
136.1EFFECTIVE DATE.This section is effective upon compliance by the chief clerical
136.2officer of the governing body of the city of Cottage Grove with the requirements of
136.3Minnesota Statutes, section 645.021, subdivisions 2 and 3.
136.4 Sec. 12. CITY OF NORTHFIELD; TAX INCREMENT FINANCING.
136.5The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that
136.6activities must be undertaken within a five-year period from the date of certification of a
136.7tax increment financing district, is considered to be met for the Riverfront Tax Increment
136.8Financing District in the city of Northfield, if the activities are undertaken prior to July
136.912, 2017.
136.10EFFECTIVE DATE.This section is effective the day after the governing body of
136.11the city of Northfield and its chief clerical officer comply with Minnesota Statutes, section
136.12645.021, subdivisions 2 and 3.
136.13 Sec. 13. CITY OF RICHFIELD; EXTENSION OF DISTRICT.
136.14Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other
136.15law to the contrary, the city of Richfield and the Housing and Redevelopment Authority in
136.16and for the city of Richfield may elect to extend the duration limit of the redevelopment
136.17tax increment financing district known as the Cedar Avenue Tax Increment Financing
136.18District established by Laws 2005, chapter 152, article 2, section 25, by ten years.
136.19EFFECTIVE DATE.This section is effective upon compliance by the city
136.20of Richfield, Hennepin County, and Independent School District No. 280 with the
136.21requirements of Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021,
136.22subdivisions 2 and 3.
136.23 Sec. 14. CITY OF ST. PAUL; TIF AUTHORITY.
136.24(a) For purposes of computing the duration limits under Minnesota Statutes, section
136.25469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
136.26may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
136.27District. This authority is limited to the first four years of increment or increments derived
136.28from taxes payable in 2023, whichever occurs first.
136.29(b) If the city elects to waive receipt of increment under paragraph (a), for purposes
136.30of applying any limits based on when the district was certified under Minnesota Statutes,
136.31section 469.176, subdivision 6, or 469.1763, the date of certification for the district is
137.1deemed to be January 2 of the property tax assessment year for which increment is first
137.2received under the waiver.
137.3EFFECTIVE DATE.This section is effective July 1, 2016, without local approval
137.4under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).
137.7 Section 1. Minnesota Statutes 2014, section 366.095, subdivision 1, is amended to read:
137.8 Subdivision 1. Certificates of indebtedness. The town board may issue certificates
137.9of indebtedness within the debt limits for a town purpose otherwise authorized by law.
137.10The certificates shall be payable in not more than ten years and be issued on the terms and
137.11in the manner as the board may determine, provided that notes issued for projects that
137.12eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2),
137.13shall be payable in not more than 20 years. If the amount of the certificates to be issued
137.14exceeds 0.25 percent of the estimated market value of the town, they shall not be issued
137.15for at least ten days after publication in a newspaper of general circulation in the town of
137.16the board's resolution determining to issue them. If within that time, a petition asking for
137.17an election on the proposition signed by voters equal to ten percent of the number of voters
137.18at the last regular town election is filed with the clerk, the certificates shall not be issued
137.19until their issuance has been approved by a majority of the votes cast on the question at
137.20a regular or special election. A tax levy shall be made to pay the principal and interest
137.21on the certificates as in the case of bonds.
137.22 Sec. 2. Minnesota Statutes 2014, section 383B.117, subdivision 2, is amended to read:
137.23 Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and
137.24without public referendum, issue capital notes within existing debt limits for the purpose
137.25of purchasing ambulance and other medical equipment, road construction or maintenance
137.26equipment, public safety equipment and other capital equipment having an expected
137.27useful life at least equal to the term of the notes issued. The notes shall be payable
137.28in not more than ten years and shall be issued on terms and in a manner as the board
137.29determines, provided that notes issued for projects that eliminate R-22, as such projects
137.30are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not more
137.31than 20 years. The total principal amount of the notes issued for any fiscal year shall not
137.32exceed one percent of the total annual budget for that year and shall be issued solely for
137.33the purchases authorized in this subdivision. A tax levy shall be made for the payment
137.34of the principal and interest on such notes as in the case of bonds. For purposes of this
138.1subdivision, "equipment" includes computer hardware and software, whether bundled with
138.2machinery or equipment or unbundled. For purposes of this subdivision, the term "medical
138.3equipment" includes computer hardware and software and other intellectual property for
138.4use in medical diagnosis, medical procedures, research, record keeping, billing, and other
138.5hospital applications, together with application development services and training related
138.6to the use of the computer hardware and software and other intellectual property, all
138.7without regard to their useful life. For purposes of determining the amount of capital notes
138.8which the county may issue in any year, the budget of the county and Hennepin Healthcare
138.9System, Inc. shall be combined and the notes issuable under this subdivision shall be in
138.10addition to obligations issuable under section373.01, subdivision 3 .
138.11 Sec. 3. Minnesota Statutes 2014, section 410.32, is amended to read:
138.12410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
138.13 (a) Notwithstanding any contrary provision of other law or charter, a home rule
138.14charter city may, by resolution and without public referendum, issue capital notes subject
138.15to the city debt limit to purchase capital equipment.
138.16 (b) For purposes of this section, "capital equipment" means:
138.17 (1) public safety equipment, ambulance and other medical equipment, road
138.18construction and maintenance equipment, and other capital equipment; and
138.19 (2) computer hardware and software, whether bundled with machinery or equipment
138.20or unbundled, together with application development services and training related to the
138.21use of the computer hardware and software.
138.22 (c) The equipment or software must have an expected useful life at least as long
138.23as the term of the notes.
138.24 (d) The notes shall be payable in not more than ten years and be issued on terms and
138.25in the manner the city determines, provided that notes issued for projects that eliminate
138.26R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be
138.27payable in not more than 20 years. The total principal amount of the capital notes issued
138.28in a fiscal year shall not exceed 0.03 percent of the estimated market value of taxable
138.29property in the city for that year.
138.30 (e) A tax levy shall be made for the payment of the principal and interest on the
138.31notes, in accordance with section475.61 , as in the case of bonds.
138.32 (f) Notes issued under this section shall require an affirmative vote of two-thirds of
138.33the governing body of the city.
139.1 (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
139.2city may also issue capital notes subject to its debt limit in the manner and subject to the
139.3limitations applicable to statutory cities pursuant to section412.301 .
139.4 Sec. 4. Minnesota Statutes 2014, section 412.301, is amended to read:
139.5412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
139.6 (a) The council may issue certificates of indebtedness or capital notes subject to the
139.7city debt limits to purchase capital equipment.
139.8 (b) For purposes of this section, "capital equipment" means:
139.9 (1) public safety equipment, ambulance and other medical equipment, road
139.10construction and maintenance equipment, and other capital equipment; and
139.11 (2) computer hardware and software, whether bundled with machinery or equipment
139.12or unbundled, together with application development services and training related to the
139.13use of the computer hardware or software.
139.14 (c) The equipment or software must have an expected useful life at least as long as
139.15the terms of the certificates or notes.
139.16 (d) Such certificates or notes shall be payable in not more than ten years and shall
139.17be issued on such terms and in such manner as the council may determine, provided,
139.18however, that notes issued for projects that eliminate R-22, as such projects are defined in
139.19section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years.
139.20 (e) If the amount of the certificates or notes to be issued to finance any such purchase
139.21exceeds 0.25 percent of the estimated market value of taxable property in the city, they
139.22shall not be issued for at least ten days after publication in the official newspaper of
139.23a council resolution determining to issue them; and if before the end of that time, a
139.24petition asking for an election on the proposition signed by voters equal to ten percent
139.25of the number of voters at the last regular municipal election is filed with the clerk, such
139.26certificates or notes shall not be issued until the proposition of their issuance has been
139.27approved by a majority of the votes cast on the question at a regular or special election.
139.28 (f) A tax levy shall be made for the payment of the principal and interest on such
139.29certificates or notes, in accordance with section475.61 , as in the case of bonds.
139.30 Sec. 5. Minnesota Statutes 2014, section 469.034, subdivision 2, is amended to read:
139.31 Subd. 2. General obligation revenue bonds. (a) An authority may pledge the
139.32general obligation of the general jurisdiction governmental unit as additional security for
139.33bonds payable from income or revenues of the project or the authority. The authority
139.34must find that the pledged revenues will equal or exceed 110 percent of the principal and
140.1interest due on the bonds for each year. The proceeds of the bonds must be used for a
140.2qualified housing development project or projects. The obligations must be issued and
140.3sold in the manner and following the procedures provided by chapter 475, except the
140.4obligations are not subject to approval by the electors, and the maturities may extend to
140.5not more than 35 years for obligations sold to finance housing for the elderly and 40 years
140.6for other obligations issued under this subdivision. The authority is the municipality for
140.7purposes of chapter 475.
140.8 (b) The principal amount of the issue must be approved by the governing body of
140.9the general jurisdiction governmental unit whose general obligation is pledged. Public
140.10hearings must be held on issuance of the obligations by both the authority and the general
140.11jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
140.12than 120 days, before the sale of the obligations.
140.13 (c) The maximum amount of general obligation bonds that may be issued and
140.14outstanding under this section equals the greater of (1) one-half of one percent of the
140.15estimated market value of the general jurisdiction governmental unit whose general
140.16obligation is pledged, or (2)$3,000,000 $5,000,000. In the case of county or multicounty
140.17general obligation bonds, the outstanding general obligation bonds of all cities in the
140.18county or counties issued under this subdivision must be added in calculating the limit
140.19under clause (1).
140.20 (d) "General jurisdiction governmental unit" means the city in which the housing
140.21development project is located. In the case of a county or multicounty authority, the
140.22county or counties may act as the general jurisdiction governmental unit. In the case of
140.23a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
140.24taxable property in each of the counties.
140.25 (e) "Qualified housing development project" means a housing development project
140.26providing housing either for the elderly or for individuals and families with incomes not
140.27greater than 80 percent of the median family income as estimated by the United States
140.28Department of Housing and Urban Development for the standard metropolitan statistical
140.29area or the nonmetropolitan county in which the project is located. The project must be
140.30owned for the term of the bonds either by the authority or by a limited partnership or other
140.31entity in which the authority or another entity under the sole control of the authority is
140.32the sole general partner and the partnership or other entity must receive (1) an allocation
140.33from the Department of Management and Budget or an entitlement issuer of tax-exempt
140.34bonding authority for the project and a preliminary determination by the Minnesota
140.35Housing Finance Agency or the applicable suballocator of tax credits that the project
140.36will qualify for four percent low-income housing tax credits or (2) a reservation of nine
141.1percent low-income housing tax credits from the Minnesota Housing Finance Agency or a
141.2suballocator of tax credits for the project. A qualified housing development project may
141.3admit nonelderly individuals and families with higher incomes if:
141.4 (1) three years have passed since initial occupancy;
141.5 (2) the authority finds the project is experiencing unanticipated vacancies resulting in
141.6insufficient revenues, because of changes in population or other unforeseen circumstances
141.7that occurred after the initial finding of adequate revenues; and
141.8 (3) the authority finds a tax levy or payment from general assets of the general
141.9jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
141.10income individuals or families are not admitted.
141.11 (f) The authority may issue bonds to refund bonds issued under this subdivision in
141.12accordance with section475.67 . The finding of the adequacy of pledged revenues required
141.13by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
141.14issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
141.15after July 1, 1992.
141.16 Sec. 6. Minnesota Statutes 2014, section 469.101, subdivision 1, is amended to read:
141.17 Subdivision 1. Establishment. An economic development authority may create
141.18and define the boundaries of economic development districts at any place or places within
141.19the city, except that the district boundaries must be contiguous, and may use the powers
141.20granted in sections469.090 to
469.108 to carry out its purposes. First the authority must
141.21hold a public hearing on the matter. At least ten days before the hearing, the authority
141.22shall publish notice of the hearing in adaily newspaper of general circulation in the city.
141.23Also, the authority shall find that an economic development district is proper and desirable
141.24to establish and develop within the city.
141.25 Sec. 7. Minnesota Statutes 2014, section 473.39, is amended by adding a subdivision
141.26to read:
141.27 Subd. 1u. Obligations. (a) In addition to other authority in this section, the council
141.28may issue certificates of indebtedness, bonds, or other obligations under this section in an
141.29amount not exceeding $82,100,000 for capital expenditures as prescribed in the council's
141.30transit capital improvement program and for related costs, including the costs of issuance
141.31and sale of the obligations. Of this authorization, after July 1, 2016, the council may
141.32issue certificates of indebtedness, bonds, or other obligations in an amount not exceeding
141.33$40,100,000, and after July 1, 2017, the council may issue certificates of indebtedness,
141.34bonds, or other obligations in an additional amount not exceeding $42,000,000.
142.1(b) This section applies in the counties of Anoka, Carver, Dakota, Hennepin,
142.2Ramsey, Scott, and Washington.
142.3EFFECTIVE DATE.This section is effective the day following final enactment.
142.4 Sec. 8. Minnesota Statutes 2014, section 475.58, subdivision 3b, is amended to read:
142.5 Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may,
142.6without regard to the election requirement under subdivision 1, issue and sell obligations
142.7for street reconstruction or bituminous overlays, if the following conditions are met:
142.8 (1) the streets are reconstructed or overlaid under a street reconstruction or overlay
142.9plan that describes the street reconstruction or overlay to be financed, the estimated costs,
142.10and any planned reconstruction or overlay of other streets in the municipality over the next
142.11five years, and the plan and issuance of the obligations has been approved by a vote of
142.12all a majority of the members of the governing body present at the meeting following a
142.13public hearing for which notice has been published in the official newspaper at least ten
142.14days but not more than 28 days prior to the hearing; and
142.15 (2) if a petition requesting a vote on the issuance is signed by voters equal to
142.16five percent of the votes cast in the last municipal general election and is filed with the
142.17municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
142.18only after obtaining the approval of a majority of the voters voting on the question of the
142.19issuance of the obligations. If the municipality elects not to submit the question to the
142.20voters, the municipality shall not propose the issuance of bonds under this section for the
142.21same purpose and in the same amount for a period of 365 days from the date of receipt
142.22of the petition. If the question of issuing the bonds is submitted and not approved by the
142.23voters, the provisions of section475.58, subdivision 1a , shall apply.
142.24 (b) Obligations issued under this subdivision are subject to the debt limit of the
142.25municipality and are not excluded from net debt under section475.51, subdivision 4 .
142.26 (c) For purposes of this subdivision, street reconstruction and bituminous overlays
142.27includes utility replacement and relocation and other activities incidental to the street
142.28reconstruction, turn lanes and other improvements having a substantial public safety
142.29function, realignments, other modifications to intersect with state and county roads, and
142.30the local share of state and county road projects. For purposes of this subdivision, "street
142.31reconstruction" includes expenditures for street reconstruction that have been incurred
142.32by a municipality before approval of a street reconstruction plan, if such expenditures
142.33are included in a street reconstruction plan approved on or before the date of the public
142.34hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
143.1 (d) Except in the case of turn lanes, safety improvements, realignments, intersection
143.2modifications, and the local share of state and county road projects, street reconstruction
143.3and bituminous overlays does not include the portion of project cost allocable to widening
143.4a street or adding curbs and gutters where none previously existed.
143.5 Sec. 9. Minnesota Statutes 2014, section 475.60, subdivision 2, is amended to read:
143.6 Subd. 2. Requirements waived. The requirements as to public sale shall not
143.7apply to:
143.8(1) obligations issued under the provisions of a home rule charter or of a law
143.9specifically authorizing a different method of sale, or authorizing them to be issued in such
143.10manner or on such terms and conditions as the governing body may determine;
143.11(2) obligations sold by an issuer in an amount not exceeding the total sum of
143.12$1,200,000 in any 12-month period;
143.13(3) obligations issued by a governing body other than a school board in anticipation
143.14of the collection of taxes or other revenues appropriated for expenditure in a single year, if
143.15sold in accordance with the most favorable of two or more proposals solicited privately;
143.16(4) obligations sold to any board, department, or agency of the United States of
143.17America or of the state of Minnesota, in accordance with rules or regulations promulgated
143.18by such board, department, or agency;
143.19(5) obligations issued to fund pension and retirement fund liabilities under section
143.20475.52, subdivision 6
, obligations issued with tender options under section
475.54,
143.21subdivision 5a , crossover refunding obligations referred to in section
475.67, subdivision
143.2213 , and any issue of obligations comprised in whole or in part of obligations bearing
143.23interest at a rate or rates which vary periodically referred to in section475.56 ;
143.24(6) obligations to be issued for a purpose, in a manner, and upon terms and
143.25conditions authorized by law, if the governing body of the municipality, on the advice of
143.26bond counsel or special tax counsel, determines that interest on the obligations cannot be
143.27represented to be excluded from gross income for purposes of federal income taxation;
143.28(7) obligations issued in the form of an installment purchase contract, lease purchase
143.29agreement, or other similar agreement;
143.30(8) obligations sold under a bond reinvestment program; and
143.31(9) if the municipality has retained an independentfinancial municipal advisor,
143.32obligations which the governing body determines shall be sold by private negotiation.
144.3 Section 1. Minnesota Statutes 2014, section 15.38, subdivision 7, is amended to read:
144.4 Subd. 7. Iron Range resources and rehabilitationBoard. After seeking
144.5a recommendation from the Iron Range Resources and Rehabilitation Board, the
144.6commissioner of Iron Range resources and rehabilitationBoard may purchase insurance it
144.7considers the commissioner deems necessary and appropriate to insure facilities operated
144.8by the board.
144.9 Sec. 2. Minnesota Statutes 2014, section 116J.424, is amended to read:
144.10116J.424 IRON RANGE RESOURCES AND REHABILITATIONBOARD
144.11CONTRIBUTION.
144.12The commissioner ofthe Iron Range resources and rehabilitation Board with
144.13approval by the board, shall provide an equal match for any loan or equity investment
144.14made for a facility located in the tax relief area defined in section273.134, paragraph (b) ,
144.15by the Minnesota minerals 21st century fund created by section116J.423 . The match may
144.16be in the form of a loan or equity investment, notwithstanding whether the fund makes
144.17a loan or equity investment. The state shall not acquire an equity interest because of an
144.18equity investment or loanby the board under this section and the board at its sole discretion
144.19commissioner, after consultation with the Iron Range Resources and Rehabilitation Board,
144.20shall have the sole discretion to decide what interestit the board acquires in a project. The
144.21commissioner of employment and economic development may require a commitment
144.22from theboard commissioner to make the match prior to disbursing money from the fund.
144.23 Sec. 3. Minnesota Statutes 2014, section 216B.161, subdivision 1, is amended to read:
144.24 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
144.25have the meanings given them in this subdivision.
144.26(b) "Area development rate" means a rate schedule established by a utility that
144.27provides customers within an area development zone service under a base utility rate
144.28schedule, except that charges may be reduced from the base rate as agreed upon by the
144.29utility and the customer consistent with this section.
144.30(c) "Area development zone" means a contiguous or noncontiguous area designated
144.31by an authority or municipality for development or redevelopment and within which one
144.32of the following conditions exists:
144.33(1) obsolete buildings not suitable for improvement or conversion or other identified
144.34hazards to the health, safety, and general well-being of the community;
145.1(2) buildings in need of substantial rehabilitation or in substandard condition; or
145.2(3) low values and damaged investments.
145.3(d) "Authority" means a rural development financing authority established under
145.4sections469.142 to
469.151 ; a housing and redevelopment authority established under
145.5sections469.001 to
469.047 ; a port authority established under sections
469.048 to
145.6469.068
; an economic development authority established under sections
469.090
145.7to469.108 ; a redevelopment agency as defined in sections
469.152 to
469.165 ; the
145.8commissioner of Iron Range resources and rehabilitation, acting after consultation
145.9with the board established under section298.22 ; a municipality that is administering a
145.10development district created under sections469.124 to
469.133 or any special law; a
145.11municipality that undertakes a project under sections469.152 to
469.165 , except a town
145.12located outside the metropolitan area as defined in section473.121, subdivision 2 , or with
145.13a population of 5,000 persons or less; or a municipality that exercises the powers of a port
145.14authority under any general or special law.
145.15(e) "Municipality" means a city, however organized, and, with respect to a project
145.16undertaken under sections469.152 to
469.165 , "municipality" has the meaning given in
145.17sections469.152 to
469.165 , and, with respect to a project undertaken under sections
145.18469.142
to
469.151 or a county or multicounty project undertaken under sections
469.004
145.19to469.008 , also includes any county.
145.20 Sec. 4. Minnesota Statutes 2014, section 276A.01, subdivision 8, is amended to read:
145.21 Subd. 8. Municipality. "Municipality" means a city, town, or township located
145.22in whole or part within the area. If a municipality is located partly within and partly
145.23without the area, the references in sections276A.01 to
276A.09 to property or any portion
145.24thereof subject to taxation or taxing jurisdiction within the municipality are to the property
145.25or portion thereof that is located in that portion of the municipality within the area,
145.26except that the fiscal capacity of the municipality must be computed upon the basis of the
145.27valuation and population of the entire municipality. A municipality shall be excluded from
145.28the area if its municipal comprehensive zoning and planning policies conscientiously
145.29exclude most commercial-industrial development, for reasons other than preserving an
145.30agricultural use. The commissioner of Iron Range resources and rehabilitationBoard and
145.31the commissioner of revenue shall jointly make this determination annually and shall
145.32notify those municipalities that are ineligible to participate in the tax base sharing program
145.33provided in this chapter for the following year. Before making the joint determination, the
145.34commissioner of Iron Range resources and rehabilitation shall seek a recommendation
145.35from the Iron Range Resources and Rehabilitation Board.
146.1 Sec. 5. Minnesota Statutes 2014, section 276A.01, subdivision 17, is amended to read:
146.2 Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up
146.3to 25 percent of the areawide levy certified by the commissioner of Iron Range resources
146.4and rehabilitation, after seeking a recommendation from the Iron Range Resources and
146.5Rehabilitation Board, to be used for the purposes of the Iron Range school consolidation
146.6and cooperatively operated school account under section298.28, subdivision 7a .
146.7(b) The allocation under paragraph (a) shall only be made after the commissioner of
146.8Iron Range resources and rehabilitation, after seeking a recommendation from the Iron
146.9Range Resources and Rehabilitation Board, has certified by June 30 that the Iron Range
146.10school consolidation and cooperatively operated account has insufficient funds to make
146.11payments as authorized under section298.28, subdivision 7a .
146.12 Sec. 6. Minnesota Statutes 2014, section 282.38, subdivision 1, is amended to read:
146.13 Subdivision 1. Development. In any county where the county board by proper
146.14resolution sets aside funds for forest development pursuant to section282.08 , clause (5),
146.15item (i), or section459.06, subdivision 2 , the commissioner of Iron Range resources
146.16and rehabilitationwith the approval of the, after seeking a recommendation from the
146.17Iron Range Resources and Rehabilitation Board, may upon request of the county board
146.18assist said county in carrying out any project for the long range development of its forest
146.19resources through matching of funds or otherwise.
146.20 Sec. 7. Minnesota Statutes 2014, section 298.001, subdivision 8, is amended to read:
146.21 Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue
146.22of the state of Minnesota, except that when used in sections 298.22 to 298.227, and
146.23298.291 to 298.298, "commissioner" means the commissioner of Iron Range resources
146.24and rehabilitation.
146.25 Sec. 8. Minnesota Statutes 2014, section 298.22, subdivision 1, is amended to read:
146.26 Subdivision 1. The Office of the Commissioner of Iron Range resources
146.27and rehabilitation. (a) The Office of the Commissioner of Iron Range resources and
146.28rehabilitation is created as an agency in the executive branch of state government. The
146.29governor shall appoint the commissioner of Iron Range resources and rehabilitation
146.30under section15.06 . The commissioner may expend amounts appropriated to the
146.31commissioner or the board for projects after submitting the expenditure to the board for
146.32a recommendation under subdivision 1a.
147.1(b) The commissioner may hold other positions or appointments that are not
147.2incompatible with duties as commissioner of Iron Range resources and rehabilitation. The
147.3commissioner may appoint a deputy commissioner. All expenses of the commissioner,
147.4including the payment of staff and other assistance as may be necessary, must be paid
147.5out of the amounts appropriated by section298.28 or otherwise made available by law
147.6to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner
147.7may utilize contracting options available under section471.345 when the commissioner
147.8determines it is in the best interest of the agency. The agency is not subject to sections
147.916E.016
and
16C.05 .
147.10(c) When the commissioner determines that distress and unemployment exists or
147.11may exist in the future in any county by reason of the removal of natural resources or
147.12a possibly limited use of natural resources in the future and any resulting decrease in
147.13employment, the commissioner may use whatever amounts of the appropriation made to
147.14the commissioner of revenue in section298.28 that are determined to be necessary and
147.15proper in the development of the remaining resources of the county and in the vocational
147.16training and rehabilitation of its residents, except that the amount needed to cover cost
147.17overruns awarded to a contractor by an arbitrator in relation to a contract awarded by
147.18the commissioner or in effect after July 1, 1985, is appropriated from the general fund.
147.19For the purposes of this section, "development of remaining resources" includes, but is
147.20not limited to, the promotion of tourism.
147.21 Sec. 9. Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read:
147.22 Subd. 1a. Iron Range Resources and Rehabilitation Board. The Iron Range
147.23Resources and Rehabilitation Board consists of the state senators and representatives
147.24elected from state senatorial or legislative districts in which one-third or more of the
147.25residents reside in a taconite assistance area as defined in section273.1341 . One additional
147.26state senator shall also be appointed by the senate Subcommittee on Committees of the
147.27Committee on Rules and Administration. All expenditures and projects made by the
147.28commissioner shall first be submitted to the boardfor approval. The board shall recommend
147.29approval or disapproval or modification of the expenditures and projects. The expenses
147.30of the board shall be paid by the state from the funds raised pursuant to this section.
147.31Members of the board may be reimbursed for expenses in the manner provided in sections
147.323.099
, subdivision 1, and
3.101 , and may receive per diem payments during the interims
147.33between legislative sessions in the manner provided in section3.099, subdivision 1 .
148.1The members shall be appointed in January of every odd-numbered year, and shall
148.2serve until January of the next odd-numbered year. Vacancies on the board shall be filled
148.3in the same manner as original members were chosen.
148.4 Sec. 10. Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read:
148.5 Subd. 5a. Forest trust. The commissioner,upon approval by after requesting a
148.6recommendation from the board, may purchase forest lands in the taconite assistance area
148.7defined in under section273.1341 with funds specifically authorized for the purchase. The
148.8acquired forest lands must be held in trust for the benefit of the citizens of the taconite
148.9assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall
148.10be managed and developed for recreation and economic development purposes. The
148.11commissioner,upon approval by after requesting a recommendation from the board,
148.12may sell forest lands purchased under this subdivision if theboard finds commissioner
148.13determines that the sale advances the purposes of the trust. Proceeds derived from the
148.14management or sale of the lands and from the sale of timber or removal of gravel or
148.15other minerals from these forest lands shall be deposited into an Iron Range Miners'
148.16Memorial Forest account that is established within the state financial accounts. Funds may
148.17be expended from the accountupon approval by after the commissioner has sought a
148.18recommendation from the board, to purchase, manage, administer, convey interests in,
148.19and improve the forest lands.With approval by After the commissioner has sought a
148.20recommendation from the board, money in the Iron Range Miners' Memorial Forest
148.21account may be transferred into the corpus of the Douglas J. Johnson economic protection
148.22trust fund established under sections298.291 to
298.294 . The property acquired under
148.23the authority granted by this subdivision and income derived from the property or the
148.24operation or management of the property are exempt from taxation by the state or its
148.25political subdivisions while held by the forest trust.
148.26 Sec. 11. Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read:
148.27 Subd. 6. Private entity participation. After seeking a recommendation from the
148.28board, the commissioner may acquire an equity interest in any project for whichit the
148.29commissioner provides funding. The commissioner may establish, participate in the
148.30management of, and dispose of the assets of charitable foundations, nonprofit limited
148.31liability companies, and nonprofit corporations associated with any project for which it
148.32provides funding, including specifically, but without limitation, a corporation within the
148.33meaning of section317A.011, subdivision 6 .
149.1 Sec. 12. Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read:
149.2 Subd. 8. Spending priority. In making orapproving recommending any
149.3expenditures on programs or projects, the commissioner and the board shall give the
149.4highest priority to programs and projects that target relief to those areas of the taconite
149.5assistance area as defined in section273.1341 , that have the largest percentages of job
149.6losses and population losses directly attributable to the economic downturn in the taconite
149.7industry since the 1980s. The commissioner and the board shall compare the 1980
149.8population and employment figures with the 2000 population and employment figures,
149.9and shall specifically consider the job losses in 2000 and 2001 resulting from the closure
149.10of LTV Steel Mining Company, in making orapproving recommending expenditures
149.11consistent with this subdivision, as well as the areas of residence of persons who suffered
149.12job loss for which relief is to be targeted under this subdivision. The commissioner
149.13may lease, for a term not exceeding 50 years and upon the terms determined by the
149.14commissionerand approved after seeking review by the board, surface and mineral
149.15interests owned or acquired by the state of Minnesota acting by and through the office of
149.16the commissioner of Iron Range resources and rehabilitation within those portions of the
149.17taconite assistance area affected by the closure of the LTV Steel Mining Company facility
149.18near Hoyt Lakes. The payments and royalties from these leases must be deposited into the
149.19fund established in section298.292 . This subdivision supersedes any other conflicting
149.20provisions of law and does not preclude the commissionerand the board from making
149.21expenditures for programs and projects in other areas after seeking review by the board.
149.22 Sec. 13. Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read:
149.23 Subd. 10. Sale or privatization of functions. The commissioner of Iron
149.24Range resources and rehabilitation may not sell or privatize the Ironworld Discovery
149.25Center or Giants Ridge Golf and Ski Resort withoutprior approval by first seeking a
149.26recommendation from the board.
149.27 Sec. 14. Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read:
149.28 Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation
149.29shall annually prepare a budget for operational expenditures, programs, and projects, and
149.30submit it to the Iron Range Resources and Rehabilitation Board for a recommendation.
149.31After the budget is approved bythe board and the governor, the commissioner may spend
149.32money in accordance with the approved budget.
149.33 Sec. 15. Minnesota Statutes 2014, section 298.221, is amended to read:
150.1298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
150.2(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
150.3pursuant to the terms of any contract entered into by the state under authority of section
150.4298.22
and any fees which may, in the discretion of the commissioner of Iron Range
150.5resources and rehabilitation, be charged in connection with any project pursuant to that
150.6section as amended, shall be deposited in the state treasury to the credit of the Iron Range
150.7Resources and Rehabilitation Board account in the special revenue fund and are hereby
150.8appropriated for the purposes of section298.22 .
150.9(b) Notwithstanding section16A.013 , merchandise may be accepted by the
150.10commissioner of the Iron Range Resources and Rehabilitation Board for payment of
150.11advertising contracts if the commissioner determines that the merchandise can be used
150.12for special event prizes or mementos at facilities operated by the board. Nothing in this
150.13paragraph authorizes the commissioner or a member of the board to receive merchandise
150.14for personal use.
150.15(c) All fees charged by the commissioner in connection with public use of the
150.16state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
150.17revenues derived by the commissioner from the operation or lease of those facilities
150.18and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
150.19Recreation Area must be deposited into an Iron Range Resources and Rehabilitation
150.20Board account that is created within the state enterprise fund. All funds deposited in the
150.21enterprise fund account are appropriated to the commissioner to be expended,subject to
150.22approval by after seeking a recommendation from the board, as follows:
150.23(1) to pay costs associated with the construction, equipping, operation, repair, or
150.24improvement of the Giants Ridge Recreation Area facilities or lands;
150.25(2) to pay principal, interest and associated bond issuance, reserve, and servicing
150.26costs associated with the financing of the facilities; and
150.27(3) to pay the costs of any other project authorized under section298.22 .
150.28 Sec. 16. Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read:
150.29 Subd. 3. Project approval. All projects authorized by this section shall be submitted
150.30by the commissioner to the Iron Range Resources and Rehabilitation Board forapproval
150.31by a recommendation from the board. Prior to the commencement of a project involving
150.32the exercise by the commissioner of any authority of sections469.174 to
469.179 , the
150.33governing body of each municipality in which any part of the project is located and the
150.34county board of any county containing portions of the project not located in an incorporated
150.35area shall by majority vote approve or disapprove the project. Any project approved by
151.1theboard commissioner and the applicable governing bodies, if any, together with detailed
151.2information concerning the project, its costs, the sources of its funding, and the amount of
151.3any bonded indebtedness to be incurred in connection with the project, shall be transmitted
151.4to the governor, who shall approve, disapprove, or return the proposal for additional
151.5consideration within 30 days of receipt. No project authorized under this section shall be
151.6undertaken, and no obligations shall be issued and no tax increments shall be expended for
151.7a project authorized under this section until the project has been approved by the governor.
151.8 Sec. 17. Minnesota Statutes 2014, section 298.2213, subdivision 4, is amended to read:
151.9 Subd. 4. Project approval. After seeking a recommendation from the boardand,
151.10the commissioner shall by August 1 each year prepare a list of projects to be funded from
151.11the money appropriated in this section with necessary supporting information including
151.12descriptions of the projects, plans, and cost estimates. A project must not be approved by
151.13theboard commissioner unless it the commissioner finds that:
151.14(1) the project will materially assist, directly or indirectly, the creation of additional
151.15long-term employment opportunities;
151.16(2) the prospective benefits of the expenditure exceed the anticipated costs; and
151.17(3) in the case of assistance to private enterprise, the project will serve a sound
151.18business purpose.
151.19Each project must be approved by theboard and the commissioner of Iron Range
151.20resources and rehabilitation. The list of projects must be submitted to the governor,
151.21who shall, by November 15 of each year, approve, disapprove, or return for further
151.22consideration, each project. The money for a project may be spent only upon approval of
151.23the project by the governor. Theboard commissioner may submit supplemental projects
151.24for approval at any time, after seeking a recommendation from the board.
151.25 Sec. 18. Minnesota Statutes 2014, section 298.2213, subdivision 5, is amended to read:
151.26 Subd. 5. Advisory committees.Before submission to the board of a proposal for
151.27a project for expenditure of money appropriated under this section, The commissioner
151.28of Iron Range resources and rehabilitation shall appoint a technical advisory committee
151.29consisting of at least seven persons who are knowledgeable in areas related to the
151.30objectives of the proposal. If the project involves investment in a scientific research
151.31proposal, at least four of the committee members must be knowledgeable in the specific
151.32scientific research area relating to the project. Members of the committees must be
151.33compensated as provided in section15.059, subdivision 3 . The board commissioner shall
151.34not act on a proposal for a request for expenditure of money appropriated under this
152.1section untilit has received the commissioner has sought review from the board of the
152.2evaluation and recommendations of the technical advisory committee.
152.3 Sec. 19. Minnesota Statutes 2014, section 298.2213, subdivision 6, is amended to read:
152.4 Subd. 6. Use of repayments and earnings. Principal and interest received in
152.5repayment of loans made under this section must be deposited in thestate treasury
152.6and are appropriated to the board for the purposes of this section northeast Minnesota
152.7economic development fund account in the special revenue fund in the state treasury. The
152.8commissioner of Iron Range resources and rehabilitation must seek a recommendation
152.9from the Iron Range Resources and Rehabilitation Board for any use of funds appropriated
152.10under this section.
152.11 Sec. 20. Minnesota Statutes 2014, section 298.223, subdivision 1, is amended to read:
152.12 Subdivision 1. Creation; purposes. A fund called the taconite environmental
152.13protection fund is created for the purpose of reclaiming, restoring and enhancing those
152.14areas of northeast Minnesota located within the taconite assistance area defined in section
152.15273.1341
, that are adversely affected by the environmentally damaging operations
152.16involved in mining taconite and iron ore and producing iron ore concentrate and for the
152.17purpose of promoting the economic development of northeast Minnesota. The taconite
152.18environmental protection fund shall be used for the following purposes:
152.19(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
152.20Board determines are in need of study and which will determine the environmental
152.21problems requiring remedial action;
152.22(2) reclamation, restoration, or reforestation of mine lands not otherwise provided
152.23for by state law;
152.24(3) local economic development projects but only if those projects are approved by
152.25theboard commissioner after seeking a recommendation of the projects from the board,
152.26and public works, including construction of sewer and water systems located within the
152.27taconite assistance area defined in section273.1341 ;
152.28(4) monitoring of mineral industry related health problems among mining employees;
152.29(5) local public works projects under section298.227 , paragraph (c); and
152.30(6) local public works projects as provided under this clause. The following amounts
152.31shall be distributed in 2009 based upon the taxable tonnage of production in 2008:
152.32(i) .4651 cent per ton to the city of Aurora for street repair and renovation;
152.33(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure
152.34improvements to the south side industrial site;
153.1(iii) .6460 cent per ton to the city of Buhl for street repair;
153.2(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;
153.3(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure
153.4upgrades;
153.5(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure
153.6upgrades;
153.7(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;
153.8(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility
153.9modifications for the miners' memorial;
153.10(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;
153.11(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;
153.12(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;
153.13(xii) .6460 cent per ton to the town of Balkan for community center repairs;
153.14(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;
153.15(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;
153.16(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;
153.17(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;
153.18(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;
153.19(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;
153.20(xix) .3230 cent per ton to Lake County for trail construction;
153.21(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand
153.22Marais;
153.23(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure
153.24improvements;
153.25(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;
153.26(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer
153.27improvements along Gayley Avenue;
153.28(xxiv) .3876 cent per ton to the city of Marble for construction of a city
153.29administration facility;
153.30(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the
153.31community center;
153.32(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure
153.33upgrades;
153.34(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades
153.35along Depot Street;
154.1(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter
154.2improvements;
154.3(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer
154.4infrastructure upgrades at Pokegema Golf Course and Park Place;
154.5(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades
154.6for 1st Avenue from River Road to 3rd Street SE; and
154.7(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing
154.8at Highway 2 and County Road 62.
154.9 Sec. 21. Minnesota Statutes 2014, section 298.223, subdivision 2, is amended to read:
154.10 Subd. 2. Administration. (a) The taconite area environmental protection fund shall
154.11be administered by the commissioner of the Iron Range Resources and Rehabilitation
154.12Board. The commissioner shall by September 1 of each year submit to the board a list
154.13of projects to be funded from the taconite area environmental protection fund, with such
154.14supporting information including description of the projects, plans, and cost estimates as
154.15may be necessary.
154.16 (b) Each year no less than one-half of the amounts deposited into the taconite
154.17environmental protection fund must be used for public works projects, including
154.18construction of sewer and water systems, as specified under subdivision 1, clause (3).
154.19After seeking a recommendation from the Iron Range Resources and Rehabilitation Board,
154.20the commissioner may waive the requirements of this paragraph.
154.21 (c)Upon approval by the board, The list of projects approved by the commissioner
154.22under this subdivision, after the commissioner has sought review of the projects by the
154.23board, shall be submitted to the governor by November 1 of each year. By December 1 of
154.24each year, the governor shall approve or disapprove, or return for further consideration,
154.25each project. Funds for a project may be expended only upon approval of the project by
154.26theboard commissioner and the governor. The commissioner may submit supplemental
154.27projectsto the board and for approval from the governor for approval after seeking review
154.28of the supplemental projects from the board at any time.
154.29 Sec. 22. Minnesota Statutes 2014, section 298.227, is amended to read:
154.30298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
154.31 (a) An amount equal to that distributed pursuant to each taconite producer's taxable
154.32production and qualifying sales under section298.28, subdivision 9a , shall be held by
154.33the Iron Range Resources and Rehabilitation Board in a separate taconite economic
154.34development fund for each taconite and direct reduced ore producer. Money from the
155.1fund for each producer shall be released by the commissioner after review by a joint
155.2committee consisting of an equal number of representatives of the salaried employees and
155.3the nonsalaried production and maintenance employees of that producer. The District 11
155.4director of the United States Steelworkers of America, on advice of each local employee
155.5president, shall select the employee members. In nonorganized operations, the employee
155.6committee shall be elected by the nonsalaried production and maintenance employees. The
155.7review must be completed no later than six months after the producer presents a proposal
155.8for expenditure of the funds to the committee. The funds held pursuant to this section may
155.9be released only for workforce development and associated public facility improvement,
155.10or for acquisition of plant and stationary mining equipment and facilities for the producer
155.11or for research and development in Minnesota on new mining, or taconite, iron, or steel
155.12production technology, but only if the producer provides a matching expenditure equal to
155.13the amount of the distribution to be used for the same purpose beginning with distributions
155.14in 2014. Effective for proposals for expenditures of money from the fund beginning May
155.1526, 2007, the commissioner may not release the funds before the next scheduled meeting
155.16of the board. If a proposed expenditure is not approved by the commissioner, after
155.17seeking a recommendation from the board, the funds must be deposited in the Taconite
155.18Environmental Protection Fund under sections298.222 to
298.225 . If a producer uses
155.19money which has been released from the fund prior to May 26, 2007 to procure haulage
155.20trucks, mobile equipment, or mining shovels, and the producer removes the piece of
155.21equipment from the taconite tax relief area defined in section273.134 within ten years
155.22from the date of receipt of the money from the fund, a portion of the money granted
155.23from the fund must be repaid to the taconite economic development fund. The portion
155.24of the money to be repaid is 100 percent of the grant if the equipment is removed from
155.25the taconite tax relief area within 12 months after receipt of the money from the fund,
155.26declining by ten percent for each of the subsequent nine years during which the equipment
155.27remains within the taconite tax relief area. If a taconite production facility is sold after
155.28operations at the facility had ceased, any money remaining in the fund for the former
155.29producer may be released to the purchaser of the facility on the terms otherwise applicable
155.30to the former producer under this section. If a producer fails to provide matching funds
155.31for a proposed expenditure within six months after the commissioner approves release
155.32of the funds, the funds are available for release to another producer in proportion to the
155.33distribution provided and under the conditions of this section. Any portion of the fund
155.34which is not released by the commissioner within one year of its deposit in the fund shall
155.35be divided between the taconite environmental protection fund created in section298.223
155.36and the Douglas J. Johnson economic protection trust fund created in section
298.292 for
156.1placement in their respective special accounts. Two-thirds of the unreleased funds shall be
156.2distributed to the taconite environmental protection fund and one-third to the Douglas J.
156.3Johnson economic protection trust fund.
156.4 (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
156.5distributions and the review process, an amount equal to ten cents per taxable ton of
156.6production in 2007, for distribution in 2008 only, that would otherwise be distributed under
156.7paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
156.8wood product facility located in the taconite tax relief area and in a county that contains a
156.9city of the first class. This amount must be deducted from the distribution under paragraph
156.10(a) for which a matching expenditure by the producer is not required. The granting of the
156.11loan or grant is subject to approval by the commissioner, after seeking a recommendation
156.12from the board. If the money is provided as a loan, interest must be payable on the loan at
156.13the rate prescribed in section298.2213, subdivision 3 . (ii) Repayments of the loan and
156.14interest, if any, must be deposited in the taconite environment protection fund under
156.15sections298.222 to
298.225 . If a loan or grant is not made under this paragraph by July 1,
156.162012, the amount that had been made available for the loan under this paragraph must be
156.17transferred to the taconite environment protection fund under sections298.222 to
298.225 .
156.18(iii) Money distributed in 2008 to the fund established under this section that exceeds ten
156.19cents per ton is available to qualifying producers under paragraph (a) on a pro rata basis.
156.20(c) Repayment or transfer of money to the taconite environmental protection fund
156.21under paragraph (b), item (ii), must be allocated by the commissioner of Iron Range
156.22resources and rehabilitation, after seeking a recommendation from the Iron Range
156.23Resources and Rehabilitation Board for public works projects in house legislative districts
156.24in the same proportion as taxable tonnage of production in 2007 in each house legislative
156.25district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for
156.26distribution in 2008. Notwithstanding any other law to the contrary, expenditures under
156.27this paragraph do not require approval by the governor. For purposes of this paragraph,
156.28"house legislative districts" means the legislative districts in existence on May 15, 2009.
156.29 Sec. 23. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:
156.30 Subd. 7a. Iron Range school consolidation and cooperatively operated school
156.31account. The following amounts must be allocated to the Iron Range Resources and
156.32Rehabilitation Board to be deposited in the Iron Range school consolidation and
156.33cooperatively operated school account that is hereby created:
157.1(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
157.2imposed under section298.24 ; and (ii) for distributions beginning in 2024, five cents per
157.3taxable ton of the tax imposed under section298.24 ;
157.4(2) the amount as determined under section298.17 , paragraph (b), clause (3);
157.5(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
157.6proceeds attributable to the increase in the implicit price deflator as provided in section
157.7298.24, subdivision 1
, with the remaining one-third to be distributed to the Douglas J.
157.8Johnson economic protection trust fund;
157.9(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the
157.10increased tax proceeds attributable to the increase in the implicit price deflator as provided
157.11in section298.24, subdivision 1 , for distribution years 2015 and 2016, with the remaining
157.12one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
157.13(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the
157.14increased tax proceeds attributable to the increase in the implicit price deflator as provided
157.15in section298.24, subdivision 1 , for distribution years 2015, 2016, and 2017, with the
157.16remaining one-third to be distributed to the Douglas J. Johnson economic protection
157.17trust fund; and
157.18(4) any other amount as provided by law.
157.19Expenditures from this account may be approved as ongoing annual expenditures
157.20and shall be made only to provide disbursements to assist school districts with the
157.21payment of bonds that were issued for qualified school projects, or for any other school
157.22disbursement as approved by the commissioner of Iron Range resources and rehabilitation
157.23after the commissioner of Iron Range resources and rehabilitation has sought review of the
157.24expenditures by the Iron Range Resources and Rehabilitation Board. For purposes of this
157.25section, "qualified school projects" means school projects within the taconite assistance
157.26area as defined in section273.1341 , that were (1) approved, by referendum, after April 3,
157.272006; and (2) approved by the commissioner of education pursuant to section123B.71 .
157.28Beginning in fiscal year 2019, the disbursement to school districts for payments for
157.29bonds issued under section123A.482 , subdivision 9, must be increased each year to
157.30offset any reduction in debt service equalization aid that the school district qualifies for in
157.31that year, under section123B.53, subdivision 6 , compared with the amount the school
157.32district qualified for in fiscal year 2018.
157.33No expenditure under this section shall be made unless approved byseven members
157.34of the commissioner of Iron Range resources and rehabilitation after seeking review of the
157.35expenditure from the Iron Range Resources and Rehabilitation Board.
158.1 Sec. 24. Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read:
158.2 Subd. 9d. Iron Range higher education account. Five cents per taxable ton must
158.3be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
158.4an Iron Range higher education account that is hereby created, to be used for higher
158.5education programs conducted at educational institutions in the taconite assistance area
158.6defined in section273.1341 . The Iron Range Higher Education committee under section
158.7298.2214,
and the Iron Range Resources and Rehabilitation Board commissioner of Iron
158.8Range resources and rehabilitation must approve all expenditures from the account, after
158.9seeking review and recommendation of the expenditures from the Iron Range Resources
158.10and Rehabilitation Board.
158.11 Sec. 25. Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read:
158.12 Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
158.13fund may be used for the following purposes:
158.14 (1) to provide loans, loan guarantees, interest buy-downs and other forms of
158.15participation with private sources of financing, but a loan to a private enterprise shall be
158.16for a principal amount not to exceed one-half of the cost of the project for which financing
158.17is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
158.18lesser of eight percent or an interest rate three percentage points less than a full faith
158.19and credit obligation of the United States government of comparable maturity, at the
158.20time that the loan is approved;
158.21 (2) to fund reserve accounts established to secure the payment when due of the
158.22principal of and interest on bonds issued pursuant to section298.2211 ;
158.23 (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
158.24on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
158.25or retrofitting heating facilities in connection with district heating systems or systems
158.26utilizing alternative energy sources;
158.27 (4) to invest in a venture capital fund or enterprise that will provide capital to other
158.28entities that are engaging in, or that will engage in, projects or programs that have the
158.29purposes set forth in subdivision 1. No investments may be made in a venture capital fund
158.30or enterprise unless at least two other unrelated investors make investments of at least
158.31$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
158.32J. Johnson economic protection trust fund may not exceed the amount of the largest
158.33investment by an unrelated investor in the venture capital fund or enterprise. For purposes
158.34of this subdivision, an "unrelated investor" is a person or entity that is not related to
158.35the entity in which the investment is made or to any individual who owns more than 40
159.1percent of the value of the entity, in any of the following relationships: spouse, parent,
159.2child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
159.3the value of all interests in it. For purposes of determining the limitations under this
159.4clause, the amount of investments made by an investor other than the Douglas J. Johnson
159.5economic protection trust fund is the sum of all investments made in the venture capital
159.6fund or enterprise during the period beginning one year before the date of the investment
159.7by the Douglas J. Johnson economic protection trust fund; and
159.8 (5) to purchase forest land in the taconite assistance area defined in section273.1341
159.9to be held and managed as a public trust for the benefit of the area for the purposes
159.10authorized in section298.22, subdivision 5a . Property purchased under this section may
159.11be sold by the commissionerupon approval by after seeking a recommendation from
159.12the board. The net proceeds must be deposited in the trust fund for the purposes and
159.13uses of this section.
159.14 Money from the trust fund shall be expended only in or for the benefit of the taconite
159.15assistance area defined in section273.1341 .
159.16 Sec. 26. Minnesota Statutes 2014, section 298.294, is amended to read:
159.17298.294 INVESTMENT OF FUND.
159.18(a) The trust fund established by section298.292 shall be invested pursuant to law
159.19by the State Board of Investment and the net interest, dividends, and other earnings arising
159.20from the investments shall be transferred, except as provided in paragraph (b), on the first
159.21day of each month to the trust and shall be included and become part of the trust fund.
159.22The amounts transferred, including the interest, dividends, and other earnings earned
159.23prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
159.241983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
159.25commissioner of Iron Range resources and rehabilitation for deposit in a separate account
159.26for expenditure for the purposes set forth in section298.292 . Amounts appropriated
159.27pursuant to this section shall not cancel but shall remain available unless expended.
159.28(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends,
159.29and other earnings under paragraph (a) shall be transferred to a special account. Funds
159.30in the special account are available for loans or grants to businesses, with priority given
159.31to businesses with 25 or fewer employees. Funds may be used for wage subsidies for
159.32up to 52 weeks of up to $5 per hour or other activities, including, but not limited to,
159.33short-term operating expenses and purchase of equipment and materials by businesses
159.34under financial duress, that will create additional jobs in the taconite assistance area
160.1under section273.1341 . Expenditures from the special account must be approved by the
160.2commissioner after seeking a recommendation from the board.
160.3(c) To qualify for a grant or loan, a business must be currently operating and have
160.4been operating for one year immediately prior to its application for a loan or grant, and its
160.5corporate headquarters must be located in the taconite assistance area.
160.6 Sec. 27. Minnesota Statutes 2014, section 298.296, subdivision 1, is amended to read:
160.7 Subdivision 1. Project approval. (a) The commissioner of Iron Range resources and
160.8rehabilitation, after seeking a recommendation from the boardand commissioner, shall by
160.9August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson
160.10economic protection trust with necessary supporting information including description of
160.11the projects, plans, and cost estimates. These projects shall be consistent with the priorities
160.12established in section298.292 and shall not be approved by the board commissioner
160.13unlessit the commissioner, after seeking a recommendation from the board, finds that:
160.14(a) (1) the project will materially assist, directly or indirectly, the creation of
160.15additional long-term employment opportunities;
160.16(b) (2) the prospective benefits of the expenditure exceed the anticipated costs; and
160.17(c) (3) in the case of assistance to private enterprise, the project will serve a sound
160.18business purpose.
160.19(b) Each project must be approved byover one-half of all of the members of the
160.20board and the commissioner of Iron Range resources and rehabilitation after seeking a
160.21recommendation from the board for the project. The list of projects shall be submitted to
160.22the governor, who shall, by November 15 of each year, approve or disapprove, or return
160.23for further consideration, each project. The money for a project may be expended only
160.24upon approval of the project by the governor. Theboard commissioner may submit a
160.25supplementalprojects project for approval at any time after seeking a recommendation for
160.26the project from the board.
160.27 Sec. 28. Minnesota Statutes 2014, section 298.296, subdivision 2, is amended to read:
160.28 Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended
160.29on projects and for administration of the trust fund only from the net interest, earnings,
160.30and dividends arising from the investment of the trust at any time, including net interest,
160.31earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
160.32available for use in fiscal year 1983, except that any amount required to be paid out of the
160.33trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
160.34X, section 4, and to make school bond payments and payments to recipients of taconite
161.1production tax proceeds pursuant to section298.225 , may be taken from the corpus of
161.2the trust.
161.3 (b) Additionally, upon recommendation by the commissioner after seeking a
161.4recommendation from the board, up to $13,000,000 from the corpus of the trust may be
161.5made available for use as provided in subdivision 4, and up to $10,000,000 from the
161.6corpus of the trust may be made available for use as provided in section298.2961 .
161.7 (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
161.8on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
161.9made available under section298.28, subdivision 4 , and Laws 2002, chapter 377, article
161.108, section 17, may be expended on projects. Funds may be expended for projects under
161.11this paragraph only if the project:
161.12 (1) is for the purposes established under section298.292, subdivision 1 , clause
161.13(1) or (2); and
161.14 (2) is approved bytwo-thirds of all of the members of the commissioner after
161.15seeking a recommendation from the board.
161.16No money made available under this paragraph or paragraph (d) can be used for
161.17administrative or operating expenses of the Iron Range Resources and Rehabilitation Board
161.18or expenses relating to any facilities owned or operated by the board on May 18, 2002.
161.19 (d) Upon recommendation bya unanimous vote of all members the commissioner
161.20after seeking a unanimous recommendation of the board, amounts in addition to those
161.21authorized under paragraphs (a), (b), and (c) may be expended on projects described in
161.22section298.292, subdivision 1 .
161.23 (e) Annual administrative costs, not including detailed engineering expenses for the
161.24projects, shall not exceed five percent of the net interest, dividends, and earnings arising
161.25from the trust in the preceding fiscal year.
161.26 (f) Principal and interest received in repayment of loans made pursuant to this
161.27section, and earnings on other investments made under section298.292, subdivision 2 ,
161.28clause (4), shall be deposited in the state treasury and credited to the trust. These receipts
161.29are appropriated to the board for the purposes of sections298.291 to
298.298 .
161.30 (g) Additionally, notwithstanding section298.293 , upon the approval of the
161.31commissioner of Iron Range resources and rehabilitation, after seeking a recommendation
161.32from the board, money from the corpus of the trust may be expanded to purchase forest
161.33lands within the taconite assistance area as provided in sections298.22 , subdivision 5a,
161.34and298.292, subdivision 2 , clause (5).
161.35 Sec. 29. Minnesota Statutes 2014, section 298.296, subdivision 4, is amended to read:
162.1 Subd. 4. Temporary loan authority. (a) After seeking a recommendation from the
162.2board, the commissioner of Iron Range resources and rehabilitation mayrecommend that
162.3use up to $7,500,000 from the corpus of the trust may beused for loans, loan guarantees,
162.4grants, or equity investments as provided in this subdivision. The money would be
162.5available for loans for construction and equipping of facilities constituting (1) a value
162.6added iron products plant, which may be either a new plant or a facility incorporated into
162.7an existing plant that produces iron upgraded to a minimum of 75 percent iron content or
162.8any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine
162.9or minerals processing plant for any mineral subject to the net proceeds tax imposed
162.10under section298.015 . A loan or loan guarantee under this paragraph may not exceed
162.11$5,000,000 for any facility.
162.12(b) Additionally, theboard commissioner of Iron Range resources and rehabilitation
162.13must reserve the first $2,000,000 of the net interest, dividends, and earnings arising
162.14from the investment of the trust after June 30, 1996, to be used for grants, loans, loan
162.15guarantees, or equity investments for the purposes set forth in paragraph (a). This amount
162.16must be reserved until it is used as described in this subdivision.
162.17(c) Additionally, theboard commissioner may recommend that up to $5,500,000
162.18from the corpus of the trust may be used for additional grants, loans, loan guarantees, or
162.19equity investments for the purposes set forth in paragraph (a).
162.20(d) The commissioner of Iron Range resources and rehabilitation, after seeking a
162.21recommendation from the board, may require thatit the board receive an equity percentage
162.22in any project to which it contributes under this section.
162.23 Sec. 30. Minnesota Statutes 2014, section 298.2961, subdivision 2, is amended to read:
162.24 Subd. 2. Projects; approval. (a) Projects funded must be for:
162.25 (1) environmentally unique reclamation projects; or
162.26 (2) pit or plant repairs, expansions, or modernizations other than for a value added
162.27iron products plant.
162.28 (b)To be proposed by the board, a project must be approved by Before the
162.29commissioner may propose a project, the commissioner must seek a recommendation
162.30from the board. The money for a project may be spent only upon approval of the project
162.31by the governor. Theboard commissioner may submit a supplemental projects project for
162.32approval at any time after seeking a recommendation for the project from the board.
162.33 (c) Theboard commissioner may require that it the board receive an equity
162.34percentage in any project to which it contributes under this section.
163.1 Sec. 31. Minnesota Statutes 2014, section 298.2961, subdivision 4, is amended to read:
163.2 Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions
163.3under section298.28, subdivision 9b , and to make grants or loans as provided in this
163.4subdivision. Any grant or loan made under this subdivision must first be approved by
163.5the commissioner after seeking a recommendation from the board, established under
163.6section298.22 .
163.7 (b) Distributions received in calendar year 2005 are allocated to the city of Virginia
163.8for improvements and repairs to the city's steam heating system.
163.9 (c) Distributions received in calendar year 2006 are allocated to a project of the
163.10public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
163.11generating plants to the use of biomass products, such as wood.
163.12 (d) Distributions received in calendar year 2007 must be paid to the city of Tower to
163.13be used for the East Two Rivers project in or near the city of Tower.
163.14 (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
163.15must be paid to St. Louis County for deposit in its county road and bridge fund to be
163.16used for relocation of St. Louis County Road 715, commonly referred to as Pike River
163.17Road. The remainder of the 2008 distribution must be paid to St. Louis County for a
163.18grant to the city of Virginia for connecting sewer and water lines to the St. Louis County
163.19maintenance garage on Highway 135, further extending the lines to interconnect with the
163.20city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent
163.21years are allocated for projects under section298.223 , subdivision 1.
163.22 Sec. 32. Minnesota Statutes 2014, section 298.298, is amended to read:
163.23298.298 LONG-RANGE PLAN.
163.24Consistent with the policy established in sections298.291 to
298.298 , the Iron
163.25Range Resources and Rehabilitation Board shall prepare and present to the governor and
163.26the legislature by December 31, 2006, a long-range plan for the use of the Douglas J.
163.27Johnson economic protection trust fund for the economic development and diversification
163.28of the taconite assistance area defined in section273.1341 . No project shall be approved
163.29recommended by the Iron Range Resources and Rehabilitation Boardwhich if the board
163.30finds that the project is not consistent with the goals and objectives established in the
163.31long-range plan.
163.32 Sec. 33. Minnesota Statutes 2014, section 298.46, subdivision 2, is amended to read:
163.33 Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly
163.34constituted authorities of a taxing district there are in existence reserves of unmined iron
164.1ore located in such district, these authorities may petition the commissioner of Iron Range
164.2resources and rehabilitationBoard for authority to petition the county assessor to verify
164.3the existence of such reserves and to ascertain the value thereof by drilling in a manner
164.4consistent with established engineering and geological exploration methods, in order that
164.5such taxing district may be able to forecast in a proper manner its future economic and
164.6fiscal potentials. The commissioner of Iron Range resources and rehabilitation may grant
164.7the authority to petition after seeking a recommendation from the Iron Range Resources
164.8and Rehabilitation Board.
164.9 Sec. 34. IRON RANGE RESOURCES AND REHABILITATION BOARD;
164.10EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
164.11(a) "Commissioner" as used in this section means the commissioner of the Iron
164.12Range Resources and Rehabilitation Board unless otherwise specified.
164.13(b) Notwithstanding any law to the contrary, the commissioner, in consultation
164.14with the commissioner of management and budget, shall offer a targeted early separation
164.15incentive program for employees of the commissioner who have attained the age of 60
164.16years or who have received credit for at least 30 years of allowable service under the
164.17provisions of Minnesota Statutes, chapter 352. The commissioner shall also offer a
164.18targeted separation incentive program for employees of the commissioner whose positions
164.19are in support of operations at Giants Ridge and will be eliminated if the agency no longer
164.20directly manages Giants Ridge operations.
164.21(c) The early separation incentive program may include one or more of the following:
164.22(1) employer-paid postseparation health, medical, and dental insurance until age
164.2365; and
164.24(2) cash incentives that may, but are not required to be, used to purchase additional
164.25years of service credit through the Minnesota State Retirement System, to the extent that
164.26the purchases are otherwise authorized by law.
164.27(d) The commissioner shall establish eligibility requirements for employees to
164.28receive an incentive.
164.29(e) The commissioner, consistent with the established program provisions under
164.30paragraph (b), and with the eligibility requirements under paragraph (f), may designate
164.31specific programs or employees as eligible to be offered the incentive program.
164.32(f) Acceptance of the offered incentive must be voluntary on the part of the
164.33employee and must be in writing. The incentive may only be offered at the sole discretion
164.34of the commissioner.
165.1(g) The cost of the incentive is payable solely by funds made available to the
165.2commissioner by law, but only on prior approval of the expenditures by the commissioner,
165.3after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.
165.4(h) Unilateral implementation of this section by the commissioner is not an unfair
165.5labor practice under Minnesota Statutes, chapter 179A.
165.6EFFECTIVE DATE.This section is effective the day following final enactment.
165.7This section is repealed June 30, 2017.
165.8 Sec. 35. REVISOR'S INSTRUCTION.
165.9The revisor of statutes shall identify and propose necessary changes to Minnesota
165.10Statutes and Minnesota Rules that are consistent with the goals of this act to (i) transfer
165.11discretionary approval authority for all expenditures and projects from the Iron Range
165.12Resources and Rehabilitation Board to the commissioner of Iron Range resources and
165.13rehabilitation, and (ii) provide that the commissioner must, in good faith, seek the review
165.14and recommendation of the board, as required, before exercising approval authority. The
165.15revisor shall submit the proposal, in a form ready for introduction, during the 2017 regular
165.16legislative session to the chairs and ranking minority members of the senate and house of
165.17representatives committees with jurisdiction over taxes.
165.20 Section 1. Minnesota Statutes 2014, section 290C.01, is amended to read:
165.21290C.01 PURPOSE.
165.22It is the policy of this state to promote sustainable forest resource management on
165.23the state's public and private lands.Recognizing that The state's private forests comprise
165.24approximately one-half of the state forest land resources, that healthy and robust forest
165.25land provides significant benefits to the state of Minnesota, and that ad. These forests
165.26play a critical role in protecting water quality and soil resources, and provide extensive
165.27wildlife habitat, diverse recreational experiences, and significant forest products that
165.28support the state's economy. Ad valorem property taxes represent a significant annual
165.29cost that can discourage long-term forest management investments. In order to foster
165.30silviculture investments and retain these forests for their economic and ecological benefits,
165.31this chapter, hereafter referred to as the "Sustainable Forest Incentive Act," is enacted
165.32to encourage the state's private forest landowners to make a long-term commitment to
165.33sustainable forest management.
166.1 Sec. 2. Minnesota Statutes 2014, section 290C.02, subdivision 1, is amended to read:
166.2 Subdivision 1. Application. When used in sections290C.01 to
290C.11
166.3the terms in this section have the meanings given them.
166.4EFFECTIVE DATE.This section is effective the day following final enactment.
166.5 Sec. 3. Minnesota Statutes 2014, section 290C.02, subdivision 3, is amended to read:
166.6 Subd. 3. Claimant. (a) "Claimant" means:
166.7 (1) a person, as that term is defined in section290.01, subdivision 2 , who owns
166.8forest land in Minnesota and files an application authorized by the Sustainable Forest
166.9Incentive Act;
166.10 (2) a purchaser or grantee if property enrolled in the program was sold or transferred
166.11after the original application was filed and prior to the annual incentive payment being
166.12made; or
166.13 (3) an owner of land previously covered by an auxiliary forest contract that
166.14automatically qualifies for inclusion in the Sustainable Forest Incentive Act program
166.15pursuant to section88.49, subdivision 9a , or
88.491, subdivision 2 .
166.16The purchaser or grantee must notify the commissioner in writing of the sale or
166.17transfer of the property. (b) Owners of land that qualifies for inclusion pursuant to section
166.1888.49, subdivision 9a
, or
88.491, subdivision 2 , must notify the commissioner in writing
166.19of the expiration of the auxiliary forest contract or land trade with a governmental unit
166.20and submit an application to the commissioner byAugust 15 July 1 in order to be eligible
166.21to receive a payment by October 1 of that same year. For purposes of section290C.11 ,
166.22claimant also includes any person bound by the covenant required in section290C.04 .
166.23(b) (c) No more than one claimant is entitled to a payment under this chapter with
166.24respect to any tract, parcel, or piece of land enrolled under this chapter that has been
166.25assigned the same parcel identification number. When enrolled forest land is owned by
166.26two or more persons, the owners must determine between them which person is eligible
166.27to claim the payments provided under sections290C.01 to
290C.11 209C.13
166.28case of property sold or transferred, the former owner and the purchaser or grantee must
166.29determine between them which person is eligible to claim the payments provided under
166.30sections290C.01 to
290C.11 209C.13
166.31the commissioner in writing which person is eligible to claim the payments.
166.32EFFECTIVE DATE.This section is effective for certifications and applications
166.33due in 2017 and thereafter.
167.1 Sec. 4. Minnesota Statutes 2014, section 290C.02, subdivision 6, is amended to read:
167.2 Subd. 6. Forest land. "Forest land" means land containing a minimum of 20
167.3contiguous acres for which the owner has implemented a forest management plan that was
167.4prepared or updated within the past ten years by an approved plan writer. For purposes of
167.5this subdivision, acres are considered to be contiguous even if they are separated by a road,
167.6waterway, railroad track, or other similar intervening property. At least 50 percent of the
167.7contiguous acreage must meet the definition of forest land in section88.01, subdivision 7 .
167.8For the purposes of sections290C.01 to
290C.11 209C.13
167.9(i) land used for residential or agricultural purposes, (ii) land enrolled in the reinvest in
167.10Minnesota program, a state or federal conservation reserve or easement reserve program
167.11under sections103F.501 to
103F.531 , the Minnesota agricultural property tax law under
167.12section273.111 , or land subject to agricultural land preservation controls or restrictions
167.13as defined in section40A.02 or under the Metropolitan Agricultural Preserves Act under
167.14chapter 473H, (iii)land exceeding 60,000 acres that is subject to a single conservation
167.15easement funded under section
97A.056 or a comparable permanent easement conveyed
167.16to a governmental or nonprofit entity; (iv) any land that becomes subject to a conservation
167.17easement funded under section97A.056 or a comparable permanent easement conveyed
167.18to a governmental or nonprofit entity after May 30, 2013; or(v) (iv) land improved with a
167.19structure,; pavement, other than a paved trail under easement, lease, or terminable license
167.20to the state of Minnesota or a political subdivision; sewer,; campsite,; or any road, other
167.21than a township road, used for purposes not prescribed in the forest management plan.
167.22EFFECTIVE DATE.This section is effective for applications made in 2017 and
167.23thereafter.
167.24 Sec. 5. Minnesota Statutes 2014, section 290C.03, is amended to read:
167.25290C.03 ELIGIBILITY REQUIREMENTS.
167.26(a) Land may be enrolled in the sustainable forest incentive program under this
167.27chapter if all of the following conditions are met:
167.28(1) the land consists of at least 20 contiguous acres and at least 50 percent of the
167.29land must meet the definition of forest land in section88.01, subdivision 7 , during the
167.30enrollment;
167.31(2) a forest management plan for the land must be prepared by an approved plan
167.32writer and implemented during the period in which the land is enrolled;
168.1(3) timber harvesting and forest management guidelines must be used in conjunction
168.2with any timber harvesting or forest management activities conducted on the land during
168.3the period in which the land is enrolled;
168.4(4) the land must be enrolled for a minimum of eight years;
168.5(5) there are no delinquent property taxes on the land;and
168.6(6) claimants enrolling more than 1,920 acres or enrolling any land that is subject
168.7to a conservation easement funded under section 97A.056, or a comparable permanent
168.8easement conveyed to a governmental or nonprofit entity in the sustainable forest incentive
168.9program must allow year-round, nonmotorized access to fish and wildlife resources and
168.10motorized access on established and maintained roads and trails, unless the road or trail is
168.11temporarily closed for safety, natural resource, or road damage reasons on enrolled land
168.12except within one-fourth mile of a permanent dwelling or during periods of high fire
168.13hazard as determined by the commissioner of natural resources.;
168.14(7) the claimant has registered the forest management plan under clause (2) with the
168.15commissioner of natural resources, who has determined that the land meets qualifications
168.16for enrollment; and
168.17(8) the land is not classified as class 2c managed forest land.
168.18(b) Claimants required to allow access under paragraph (a), clause (6), do not by
168.19that action:
168.20(1) extend any assurance that the land is safe for any purpose;
168.21(2) confer upon the person the legal status of an invitee or licensee to whom a duty
168.22of care is owed; or
168.23(3) assume responsibility for or incur liability for any injury to the person or property
168.24caused by an act or omission of the person.
168.25(c) The commissioner of natural resources shall annually provide county assessors
168.26verification information regarding plan registration under paragraph (a), clause (7), on
168.27a timely basis.
168.28(d) A minimum of three acres must be excluded from enrolled land when the land is
168.29improved with a structure that is not a minor, ancillary, and nonresidential structure.
168.30(e) If land does not meet the definition of forest land in section 290C.02, subdivision
168.316, because the land is:
168.32(1) enrolled in a state or federal conservation reserve or easement program under
168.33sections 103F.501 to 103F.531;
168.34(2) subject to the Minnesota agricultural property tax under section 273.111; or
169.1(3) subject to agricultural land preservation controls or restrictions as defined in
169.2section 40A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H, the
169.3entire tax parcel that contains the land is not eligible to be enrolled in the program.
169.4EFFECTIVE DATE.This section is effective for certifications and applications
169.5due in 2017 and thereafter.
169.6 Sec. 6. Minnesota Statutes 2014, section 290C.04, is amended to read:
169.7290C.04 APPLICATIONS.
169.8 (a) A landowner may apply to enroll forest land for the sustainable forest incentive
169.9program under this chapter. The claimant must complete, sign, and submit an application
169.10to the commissioner by September 30 in order for the land to become eligible beginning
169.11in the next year. The application shall be on a form prescribed by thecommissioner
169.12commissioners of revenue and natural resources and must include the information the
169.13commissioner deems necessary. At a minimum, the application must show the following
169.14information for the land and the claimant: (i) the claimant's Social Security number or
169.15state or federal business tax registration number and date of birth, (ii) the claimant's
169.16address, (iii) the claimant's signature, (iv) the county's parcel identification numbers for
169.17the tax parcels that completely contain the claimant's forest land that is sought to be
169.18enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the approved
169.19plan writer's signature and identification number,and (vii) proof, in a form specified by the
169.20commissioner, that the claimant has executed and acknowledged in the manner required
169.21by law for a deed, and recorded, a covenant that the land is not and shall not be developed
169.22in a manner inconsistent with the requirements and conditions of this chapter, and (viii) a
169.23registration number for the forest management plan, issued by the commissioner of natural
169.24resources. The covenant shall state in writing that the covenant is binding on the claimant
169.25and the claimant's successor or assignee, and that it runs with the land for a period of not
169.26less than eight years unless the claimant requests termination of the covenant after a
169.27reduction in payments due to changes in the payment formula under section 290C.07 or as
169.28a result of executive action, the amount of payment a claimant is eligible to receive under
169.29section 290C.07 is reduced or limited. The commissioner shall specify the form of the
169.30covenant and provide copies upon request. The covenant must include a legal description
169.31that encompasses all the forest land that the claimant wishes to enroll under this section or
169.32the certificate of title number for that land if it is registered land. The commissioner of
169.33natural resources shall record the area eligible for enrollment into the Sustainable Forest
169.34Incentive Act as electronic geospatial data, as defined in section 16E.30, subdivision 10.
170.1(b) The commissioner shall provide a copy of the application filed by the claimant
170.2and all supporting materials to the commissioner of natural resources within 15 days of
170.3receipt or by September 1, whichever is sooner. The commissioner of natural resources
170.4must notify the commissioner whether the applicant qualifies for enrollment within 30
170.5days of receipt, and if the applicant qualifies for enrollment, the commissioner of natural
170.6resources shall specify the number of qualifying acres per tax parcel.
170.7(b) In all cases, (c) The commissioner shall notify the claimant within 90 days after
170.8receipt of a completed application that either the land has or has not been approved for
170.9enrollment. A claimant whose application is denied may appeal the denial as provided
170.10in section290C.13 .
170.11(c) (d) Within 90 days after the denial of an application, or within 90 days after the
170.12final resolution of any appeal related to the denial, the commissioner shall execute and
170.13acknowledge a document releasing the land from the covenant required under this chapter.
170.14The document must be mailed to the claimant and is entitled to be recorded.
170.15(d) (e) The Social Security numbers collected from individuals under this section are
170.16private data as provided in section13.355 . The federal business tax registration number
170.17and date of birth data collected under this section are also private data on individuals or
170.18nonpublic data, as defined in section13.02 , subdivisions 9 and 12, but may be shared
170.19with county assessors for purposes of tax administration and with county treasurers for
170.20purposes of the revenue recapture under chapter 270A.
170.21EFFECTIVE DATE.This section is effective for certifications and applications
170.22due in 2017 and thereafter.
170.23 Sec. 7. Minnesota Statutes 2014, section 290C.05, is amended to read:
170.24290C.05 ANNUAL CERTIFICATION AND MONITORING.
170.25 (a) On or beforeJuly 1 May 15 of each year, beginning with the year after the
170.26original claimant has received an approved application, the commissioner shall send each
170.27claimant enrolled under the sustainable forest incentive program a certification form. For
170.28purposes of this section, theoriginal claimant is the person that filed the first application
170.29under section
290C.04 to enroll the land in the program current property owner on record,
170.30or the person designated by the owners in the case of multiple ownership. The claimant
170.31must sign and return the certification, attesting to the commissioner by July 1 of that
170.32same year, and (1) attest that the requirements and conditions for continued enrollment
170.33in the program are currently being met, andmust return the signed certification form to
170.34the commissioner by August 15 of that same year (2) provide a report in the form and
171.1manner determined by the commissioner of natural resources describing the management
171.2practices that have been carried out on the enrolled property during the prior year. If the
171.3claimant does not return an annual certification form by the due date, the provisions
171.4in section290C.11 apply. The commissioner of natural resources must verify that the
171.5claimant meets program requirements.
171.6(b) The commissioner must provide the certification form and annual report described
171.7in paragraph (a), clause (2), to the commissioner of natural resources by August 1.
171.8(c) The commissioner of natural resources must conduct annual monitoring
171.9of a subset of claimants, excluding land also enrolled in a conservation easement
171.10program. Claimants will be selected for monitoring based on reported violations, annual
171.11certification, and random selections. Monitoring will be conducted on ten percent of
171.12claimants as of July 1 of each year. Monitoring may include, but is not limited to, a site
171.13visit by a Department of Natural Resources or contracted forester. The commissioner of
171.14natural resources must develop a monitoring form to record the monitoring data.
171.15EFFECTIVE DATE.Paragraphs (a) and (b) are effective for certifications and
171.16applications due in 2017 and thereafter. Paragraph (c) is effective July 1, 2019.
171.17 Sec. 8. Minnesota Statutes 2014, section 290C.055, is amended to read:
171.18290C.055 LENGTH OF COVENANT.
171.19(a)The covenant remains in effect for a minimum of eight years. Claimants enrolling
171.20any land that is subject to a conservation easement funded under section 97A.056 or a
171.21comparable permanent easement conveyed to a governmental or nonprofit entity must
171.22enroll their land under a covenant with a minimum duration of eight years. All other
171.23claimants may choose to enroll their land under a covenant with a minimum duration of
171.24eight, 20, or 50 years. Ifland is removed the claimant requests removal of land from the
171.25program before it has been enrolled forfour years one-half the number of years of the
171.26covenant's duration, the covenant remains in effect foreight years the entire duration
171.27of the covenant from the date recorded.
171.28(b) If land that has been enrolled forfour years one-half the number of years of the
171.29covenant's minimum duration or more is removed from the program for any reason, there
171.30is a waiting period before the covenant terminates. The covenant terminates on January 1
171.31of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year minimum covenant,
171.32respectively, that begins after the date that:
171.33(1) the commissioner receives notification from the claimant that the claimant wishes
171.34to remove the land from the program under section290C.10 ; or
172.1(2) the date that the land is removed from the program under section290C.11 .
172.2(c) Notwithstanding the other provisions of this section, the covenant is terminated:
172.3(1) at the same time that the land is removed from the program due to acquisition of
172.4title or possession for a public purpose under section290C.10 ; or
172.5(2) at the request of the claimantafter (i) if there is a reduction in payments due to
172.6changes in the payment formula under section290C.07 ; or (ii) if, as a result of executive
172.7action, the amount of payment a claimant is eligible to receive under section 290C.07 is
172.8reduced or limited.
172.9EFFECTIVE DATE.This section is effective for certifications and applications in
172.102017 and thereafter.
172.11 Sec. 9. Minnesota Statutes 2014, section 290C.07, is amended to read:
172.12290C.07 CALCULATION OF INCENTIVE PAYMENT.
172.13 (a) An approved claimant under the sustainable forest incentive program is eligible
172.14to receive an annual payment for each acre of enrolled land, excluding any acre improved
172.15with a paved trail under easement, lease, or terminable license to the state of Minnesota or
172.16a political subdivision. The payment shall equal$7 per acre for each acre enrolled in the
172.17sustainable forest incentive program. a percentage of the property tax that would be paid
172.18on the land determined by using the previous year's statewide average total tax rate for all
172.19taxes levied within townships and unorganized territories, the estimated market value per
172.20acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for
172.21claimants enrolling land that is subject to a conservation easement funded under section
172.2297A.056 or a comparable permanent easement conveyed to a governmental or nonprofit
172.23entity before May 31, 2013, 25 percent; (2) for claimants enrolling land that is not subject
172.24to a conservation easement under an eight-year covenant, 65 percent; (3) for claimants
172.25enrolling land that is not subject to a conservation easement under a 20-year covenant, 90
172.26percent; and (4) for claimants enrolling land that is not subject to a conservation easement
172.27under a 50-year covenant, 115 percent.
172.28 (b) The calculated payment shall not be less than the payment received in 2016 and
172.29shall not increase or decrease by more than ten percent relative to the payment received
172.30for the previous year.
172.31(c) In addition to the payments provided under this section, a claimant enrolling
172.32more than 1,920 acres shall be allowed an additional payment per acre equal to the
172.33amount prescribed in paragraph (a), clause (1), for all acres of enrolled land on which
172.34public access is allowed, as required under section 290C.03, paragraph (a), clause (6),
173.1excluding any land subject to a conservation easement funded under section 97A.056, or a
173.2permanent easement conveyed to a governmental or nonprofit entity that is required to
173.3allow for public access under section 290C.03, paragraph (a), clause (6).
173.4EFFECTIVE DATE.This section is effective for calculations made in 2017 and
173.5thereafter.
173.6 Sec. 10. Minnesota Statutes 2014, section 290C.08, subdivision 1, is amended to read:
173.7 Subdivision 1. Annual payment. An incentive payment for each acre of enrolled
173.8land will be made annually to each claimant in the amount determined under section
173.9290C.07
. By September 15 of each year, the commissioner of natural resources will
173.10certify to the commissioner the eligibility of each claimant to receive a payment. The
173.11incentive payment shall be paid by the commissioner on or before October 1 each year
173.12based on the certifications dueAugust 15 July 1 of that year. Interest at the annual rate
173.13determined under section270C.40 shall be included with any incentive payment not
173.14paid by the later of October 1 of the year the certification was due, or 45 days after the
173.15completed certification was returned or filed if the commissioner accepts a certification
173.16filed afterAugust 15 July 1 of the taxes payable year as the resolution of an appeal.
173.17EFFECTIVE DATE.This section is effective for certifications and applications
173.18due in 2017 and thereafter.
173.19 Sec. 11. Minnesota Statutes 2014, section 290C.10, is amended to read:
173.20290C.10 WITHDRAWAL PROCEDURES.
173.21An approved claimant (a) The current owner of land enrolled under the sustainable
173.22forest incentive program for a minimum offour years one-half the number of years
173.23of the covenant's minimum duration may notify the commissioner of the intent to
173.24terminate enrollment. Within 90 days of receipt of notice to terminate enrollment, the
173.25commissioner shall inform the claimant in writing, acknowledging receipt of this notice
173.26and indicating the effective date of termination from the sustainable forest incentive
173.27program. Termination of enrollment in the sustainable forest incentive program occurs on
173.28January 1 of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year respective
173.29minimum covenant that begins after receipt by the commissioner of the termination
173.30notice. After the commissioner issues an effective date of termination, a claimant wishing
173.31to continue the land's enrollment in the sustainable forest incentive program beyond the
173.32termination date must apply for enrollment as prescribed in section290C.04 . A claimant
173.33who withdraws a parcel of land from this program may not reenroll the parcel for a period
174.1of three years. Within 90 days after the termination date, the commissioner shall execute
174.2and acknowledge a document releasing the land from the covenant required under this
174.3chapter. The document must be mailed to the claimant and is entitled to be recorded.
174.4(b) Notwithstanding paragraph (a), on request of the claimant, the commissioner may
174.5allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the
174.6state of Minnesota, any local government unit, or any other entity which has the power of
174.7eminent domain acquires title or possession to the land for a public purposenotwithstanding
174.8the provisions of this section. In the case of such an eligible acquisition under this
174.9paragraph, the commissioner shall execute and acknowledge a document releasing the
174.10land acquired by the state, local government unit, or other entity from the covenant.
174.11(c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner
174.12shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty
174.13when a government or nonprofit entity acquires a permanent conservation easement on the
174.14enrolled property and the conservation easement is at least as restrictive as the covenant
174.15required under section 290C.04. The commissioner of natural resources must notify the
174.16commissioner of lands acquired under this paragraph that are eligible for withdrawal.
174.17In the case of an eligible easement acquisition under this paragraph, the commissioner
174.18shall execute and acknowledge a document releasing the land subject to the easement
174.19from the covenant.
174.20(d) Notwithstanding paragraph (a), upon request of the claimant, the commissioner
174.21shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty for
174.22land that is subject to fee or easement acquisition or lease to the state of Minnesota or a
174.23political subdivision of the state for the public purpose of a paved trail. The commissioner
174.24of natural resources must notify the commissioner of lands acquired under this paragraph
174.25that are eligible for withdrawal. In the case of an eligible fee or easement acquisition or
174.26lease under this paragraph, the commissioner shall execute and acknowledge a document
174.27releasing the land subject to fee or easement acquisition or lease by the state or political
174.28subdivision of the state.
174.29(e) All other enrolled land must remain in the program.
174.30EFFECTIVE DATE.The amendments to paragraphs (c) and (d) are effective
174.31the day following final enactment. The amendments to paragraphs (a), (b), and (e) are
174.32effective for notifications made in 2017 and thereafter.
174.33 Sec. 12. [290C.101] TRANSFER OF OWNERSHIP.
174.34 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
174.35have the meanings provided.
175.1(b) "New owner" means a prospective purchaser or grantee.
175.2(c) "Owner" means a grantor or seller.
175.3 Subd. 2. Notification to commissioner. (a) An owner must notify the commissioner
175.4if the owner transfers any or all of the owner's land enrolled in the sustainable forest
175.5incentive program to one or more new owners within 60 days of the transfer of title to the
175.6property. The notification must include the legal descriptions of the transferred property,
175.7the tax parcel numbers, and the name and address of the new owner. If transfer of ownership
175.8is a result of the death of the claimant, the provisions of section 290C.12 shall apply.
175.9(b) Upon notification, the commissioner shall inform the new owner of the
175.10restrictions of the covenant required by section 290C.04 and the withdrawal procedures
175.11under section 290C.10. In order for the new owner to receive payments pursuant to this
175.12chapter, the new owner must file an application and register a new forest management plan
175.13with the commissioner of natural resources within two years from the date the title of the
175.14property was transferred to remain eligible.
175.15 Subd. 3. Termination of enrollment. The commissioner will terminate enrollment
175.16according to the procedure in section 290C.10 for failure of the new owner to register a
175.17forest management plan within the time period in subdivision 2, paragraph (b).
175.18EFFECTIVE DATE.This section is effective July 1, 2016.
175.19 Sec. 13. Minnesota Statutes 2014, section 290C.11, is amended to read:
175.20290C.11 PENALTIES FOR REMOVAL.
175.21 (a) If the commissioner determines that land enrolled in the sustainable forest
175.22incentive program is in violation of the conditions for enrollment as specified in section
175.23290C.03
, or upon notification by the commissioner of natural resources that land enrolled
175.24is in violation of the conditions for enrollment, the commissioner shall notify theclaimant
175.25current owner of the land of the intent to removeall the tax parcel of the enrolled land
175.26where the violation has occurred from the sustainable forest incentive program. The
175.27penalties described under paragraph (c) apply. Theclaimant current owner has 60 days to
175.28appeal this determination under the provisions of section290C.13 .
175.29 (b) If the commissioner determines the land is to be removed from the sustainable
175.30forest incentive program due to the construction or addition of an improvement to the
175.31property, theclaimant owner of the tax parcel that is in violation is liable for payment
175.32to the commissioner in the amount equal to: (1) the paymentsreceived issued related to
175.33the enrolled tax parcel under this chapter for the previous four-year period in the case of
175.34an eight-year minimum covenant, ten-year period in the case of a 20-year minimum
176.1covenant, or 25-year period in the case of a 50-year minimum covenant, plus interest; and
176.2(2) 25 percent of the estimated market value of the property as reclassified under section
176.3273.13 due to the structure being on the tax parcel, as determined by the assessor.
176.4(c) If the commissioner of natural resources determines that the land is used for
176.5purposes other than forestry purposes, the commissioner of natural resources shall notify
176.6the commissioner of revenue, who shall notify the current owner of the tax parcel that is in
176.7violation that the current owner is liable to the commissioner in an amount equal to: (1) 30
176.8percent of the estimated market value as property reclassified under section 273.13, due
176.9to the change in use, as determined by the assessor; and (2) the payments issued related
176.10to the enrolled tax parcel under this chapter for the previous four-year period in the case
176.11of an eight-year covenant, ten-year period in the case of a 20-year covenant, or 25-year
176.12period in the case of a 50-year covenant, plus interest.
176.13 (d) The claimant has 90 days to satisfy the payment for removal of land from the
176.14sustainable forest incentive program under this section. If the penalty is not paid within
176.15the 90-day period under this paragraph, the commissioner shall certify the amount to the
176.16county auditor for collection as a part of the general ad valorem real property taxes on the
176.17land in the following taxes payable year.
176.18EFFECTIVE DATE.This section is effective the day following final enactment.
176.19 Sec. 14. Minnesota Statutes 2014, section 290C.13, subdivision 6, is amended to read:
176.20 Subd. 6. Determination of appeal. On the basis of applicable law and available
176.21information, the commissioner shall determine the validity, if any, in whole or in part,
176.22of the appeal and notify the claimant of the decision. This notice must be in writing
176.23and contain the basis for the determination. The commissioner shall consult with the
176.24commissioner of natural resources when an appeal relates to the use of the property for
176.25forestry or nonforestry purposes and for appeals related to forest management plans.
176.26EFFECTIVE DATE.This section is effective the day following final enactment.
176.27 Sec. 15. SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION
176.28PROVISION.
176.29(a) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the
176.30owner of enrolled lands may elect through May 15, 2018, and without penalty, to change
176.31the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055. The
176.32owner of enrolled land must provide notice to the Department of Revenue of its intent to
176.33change the length of its covenant.
177.1(b) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the
177.2owner of enrolled land must comply with the changes made in the act by certifications due
177.3in 2018, as required under Minnesota Statutes, section 290C.05.
177.4EFFECTIVE DATE.This section is effective the day following final enactment.
177.5 Sec. 16. ADMINISTRATIVE APPROPRIATION.
177.6$600,000 in fiscal year 2017 is appropriated from the general fund to the
177.7commissioner of natural resources for administering this article. The funding base for
177.8administering this article in fiscal year 2018 and thereafter is $600,000.
177.9EFFECTIVE DATE.This section is effective the day following final enactment.
177.10 Sec. 17. REPEALER.
177.11Minnesota Statutes 2014, section 290C.02, subdivisions 5 and 9, are repealed.
177.12EFFECTIVE DATE.This section is effective the day following final enactment.
177.15 Section 1. Minnesota Statutes 2015 Supplement, section 16A.152, subdivision 2,
177.16is amended to read:
177.17 Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
177.18fund revenues and expenditures, the commissioner of management and budget determines
177.19that there will be a positive unrestricted budgetary general fund balance at the close of
177.20the biennium, the commissioner of management and budget must allocate money to the
177.21following accounts and purposes in priority order:
177.22 (1) the cash flow account established in subdivision 1 until that account reaches
177.23$350,000,000;
177.24 (2) the budget reserve account established in subdivision 1a until that account
177.25reaches$810,992,000 $1,596,522,000;
177.26 (3) the amount necessary to increase the aid payment schedule for school district
177.27aids and credits payments in section127A.45 to not more than 90 percent rounded to the
177.28nearest tenth of a percent without exceeding the amount available and with any remaining
177.29funds deposited in the budget reserve; and
177.30 (4) the amount necessary to restore all or a portion of the net aid reductions under
177.31section127A.441 and to reduce the property tax revenue recognition shift under section
177.32123B.75, subdivision 5
, by the same amount;.
178.1(5) the closed landfill investment fund established in section
115B.421 until
178.2$63,215,000 has been transferred into the account. This clause expires after the entire
178.3amount of the transfer has been made; and
178.4(6) the metropolitan landfill contingency action trust account established in section
178.5473.845 until $8,100,000 has been transferred into the account. This clause expires after
178.6the entire amount of the transfer has been made.
178.7 (b) The amounts necessary to meet the requirements of this section are appropriated
178.8from the general fund within two weeks after the forecast is released or, in the case of
178.9transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
178.10schedules otherwise established in statute.
178.11 (c) The commissioner of management and budget shall certify the total dollar
178.12amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
178.13education. The commissioner of education shall increase the aid payment percentage and
178.14reduce the property tax shift percentage by these amounts and apply those reductions to
178.15the current fiscal year and thereafter.
178.16EFFECTIVE DATE.This section is effective July 1, 2016.
178.17 Sec. 2. [116J.952] NEW MARKETS GRANT PROGRAM.
178.18 Subdivision 1. Grant program established. The commissioner shall award new
178.19markets grants for qualified low-income community investments as specified under this
178.20section. The commissioner shall adopt rules to establish criteria for determining grant
178.21eligibility.
178.22 Subd. 2. Definitions. (a) For purposes of this section, the following terms have
178.23the meanings given.
178.24(b) "Applicant" means a qualified community development entity as defined in
178.25paragraph (h).
178.26(c) "Commissioner" means the commissioner of employment and economic
178.27development.
178.28(d) "Greater Minnesota" means the area of the state that excludes the metropolitan
178.29area, as defined in section 473.121, subdivision 2.
178.30(e) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.
178.31(f) "Qualified active low-income community business" has the meaning given in
178.32section 45D of the Internal Revenue Code. The term does not include:
178.33(1) any trade or business engaged in insurance, banking, lending, lobbying, political
178.34consulting, or leisure; or
179.1(2) any trade or business activity consisting of the operation of any private or
179.2commercial golf course, country club, suntan facility, hot tub facility, massage parlor, race
179.3track, or other facility used for gambling, or any store the principal business of which is
179.4the sale of alcoholic beverages for consumption off premises.
179.5 (g) "Low-income communities" as defined in section 45D of the Internal Revenue
179.6Code and applied to any term or requirement used in this section or an incorporated
179.7provision of federal law includes the area of any home rule charter or statutory city that:
179.8 (1) is located in greater Minnesota;
179.9 (2) has a population, as defined in section 477A.011, subdivision 3, of 500 or
179.10more; and
179.11 (3) has net tax capacity of property, classified as class 3 under section 273.13, of
179.12less than $500 per capita for property taxes assessed in 2015, payable in 2016, including
179.13the city's distribution net tax capacity and excluding its contribution net tax capacity
179.14under chapter 276A.
179.15(h) "Qualified community development entity" has the meaning given in section
179.1645D of the Internal Revenue Code, provided that the entity has direct lending experience
179.17serving businesses in disadvantaged communities in the state and a primary mission of
179.18economic development.
179.19(i) "Qualified low-income community investment" means any capital or equity
179.20investment in, or loan to, any qualified active low-income community business.
179.21 Subd. 3. Grant awards. The commissioner shall award grants to qualified
179.22community development entities based on a competitive review of applications received
179.23by the commissioner using criteria established in subdivision 4.
179.24 Subd. 4. Application. (a) The commissioner shall develop an application form
179.25requiring information necessary to evaluate the benefits to Minnesota from awarding
179.26the grants.
179.27(b) Prior to awarding grants to an applicant under this subdivision, the commissioner
179.28shall consider the following:
179.29(1) whether the qualified community development entity has demonstrated
179.30experience providing capital or technical assistance to disadvantaged businesses or
179.31communities in the state;
179.32(2) the extent to which an applicant demonstrates direct experience in asset and risk
179.33management and in fulfilling government compliance requirements;
179.34(3) the extent to which an applicant demonstrates a capitalization strategy that
179.35ensures that the economic benefit of the grant allocation remains in the state;
180.1(4) the extent to which the applicant establishes standards for wages and benefits
180.2exceeding federal poverty guidelines and includes a means by which to monitor and
180.3measure ongoing compliance with those standards;
180.4(5) the financial contributions expected to be made to the project from nonstate
180.5sources; and
180.6(6) any other criteria the commissioner deems necessary.
180.7 Subd. 5. Annual reporting by community development entities. A community
180.8development entity that has been awarded a grant must submit an annual report to the
180.9commissioner within 180 days after the end of the fiscal year. The report must include
180.10information on investments made in the preceding year, including but not limited to the
180.11following:
180.12(1) the types of industries, identified by the North American Industry Classification
180.13System Code, in which a qualified low-income community investment was made;
180.14(2) the names of the counties in which the qualified active low-income community
180.15businesses are located which received qualified low-income community investments;
180.16(3) the number of jobs created and retained by qualified active low-income
180.17community businesses receiving qualified low-income community investments, including
180.18verification that the average wages and benefits paid to full-time employees, based on an
180.19hourly wage for a 40-hour work week, meet or exceed 105 percent of the federal poverty
180.20income guidelines for a family of four; and
180.21(4) other information and documentation required by the commissioner to verify
180.22continued certification as a qualified community development entity under United States
180.23Code, title 26, section 45D.
180.24 Subd. 6. Application fees; fund created. The qualified community development
180.25entity must submit a nonrefundable application fee at the time the application is submitted
180.26equal to the amount published in the Minnesota new markets grant program application.
180.27The commissioner may allow up to 25 percent of the fee to be submitted up to 180 days
180.28following the grant award and up to 25 percent of the fee to be submitted up to 270 days
180.29following the grant award. Application fees are deposited in the new markets grant
180.30program administration account in the special revenue fund.
180.31 Subd. 7. Administrative fees. Upon the issuance of a qualified low-income
180.32community investment by a qualified community development entity, an administrative
180.33fee in an amount determined by the commissioner and published in the grant agreement
180.34must be deposited in the new markets grant program administration account in the special
180.35revenue fund.
181.1 Subd. 8. Administrative expenses. Amounts in the new markets grant program
181.2administration account are appropriated annually to the commissioner for administrative
181.3expenses related to administering the new markets grant program in this section.
181.4 Subd. 9. Annual report. The commissioner shall annually by January 15, 2018
181.5through 2023, report to the chairs and ranking minority members of the legislative
181.6committees on economic development on the implementation of the grant program,
181.7including an evaluation of the success and economic impact of the program in the state.
181.8The report must include:
181.9(1) the number of women-owned and minority-owned businesses assisted by the
181.10grants;
181.11(2) the number of greater Minnesota-located businesses assisted by the grants and
181.12the amount of that assistance;
181.13(3) the number of metropolitan area-located businesses assisted by the grants and the
181.14amount of that assistance;
181.15(4) the number of jobs created by the grants including the number of women and
181.16minorities obtaining jobs; and
181.17(5) the number of jobs created by the grants located in greater Minnesota and in the
181.18metropolitan area.
181.19 Subd. 10. Expiration. This section expires the earlier of July 1, 2024, or when the
181.20last of the grant funds have been awarded. The commissioner must issue the rules for the
181.21implementation of this section to allow commencement of grant awards by January 1, 2017.
181.22EFFECTIVE DATE.This section is effective the day following final enactment.
181.23 Sec. 3. [270C.22] TAX TIME SAVINGS GRANT PROGRAM.
181.24 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
181.25have the meanings given.
181.26(b) "Financial capability services" means any of the following:
181.27(1) assistance with opening a savings or transactional account that meets the Federal
181.28Deposit Insurance Corporation's model safe accounts template standards;
181.29(2) assistance with depositing all or part of a tax refund into a savings or transactional
181.30account;
181.31(3) assistance with obtaining and reviewing a consumer report or credit score, as
181.32those terms are defined in United States Code, title 15, section 1681a;
181.33(4) assistance with obtaining and reviewing a banking history report;
181.34(5) financial coaching, or referral to financial coaching services, as provided in
181.35section 256E.35, subdivision 4a;
182.1(6) National Foundation for Credit Counseling certified consumer credit and debt
182.2counseling or referral to these services;
182.3(7) enrollment in a matched or incentivized savings program, including the provision
182.4of matching or incentive funds;
182.5(8) assistance with purchasing federal retirement savings bonds, as described in
182.6Code of Federal Regulations, title 31, part 347, or referral to a certified financial planner,
182.7registered investment adviser, licensed insurance producer or agent, or a registered
182.8securities broker-dealer representative for private sector retirement options; or
182.9(9) assistance with purchasing a Series I United States Savings Bond with all or
182.10part of a tax refund.
182.11(c) "Transactional account" means a traditional demand deposit account or a general
182.12purpose reloadable prepaid card offered by a bank or credit union.
182.13(d) "TCE" means the Tax Counseling for the Elderly program established by the
182.14Internal Revenue Service.
182.15(e) "VITA" means the Volunteer Income Tax Assistance program established by the
182.16Internal Revenue Service.
182.17 Subd. 2. Creation. The commissioner of revenue shall establish a tax time
182.18savings grant program to make grants to one or more nonprofit organizations to fund the
182.19integration of financial capability services into the delivery of taxpayer assistance services
182.20funded by grants under section 270C.21.
182.21 Subd. 3. Qualified applicant. To be eligible to receive a grant under the tax time
182.22savings grant program, an applicant must:
182.23(1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered
182.24with the Internal Revenue Service as part of either the VITA or TCE programs; and
182.25(2) commit to dedicate at least one staff or volunteer position to coordinate financial
182.26capability services at a VITA or TCE program site and to offer VITA or TCE program
182.27participants free assistance with the initiation through completion of:
182.28(i) opening a savings and a transactional account that meet the Federal Deposit
182.29Insurance Corporation's model safe accounts template standards;
182.30(ii) depositing all or part of a tax refund into a savings or transactional account; and
182.31(iii) purchasing a Series I United States Savings Bond with all or part of a tax refund.
182.32 Subd. 4. Conflict of interest. (a) No applicant may receive direct compensation
182.33from a bank, credit union, other financial services provider, or vendor in exchange for the
182.34applicant offering to program participants the products or services of that bank, credit
182.35union, other financial services provider, or vendor.
183.1(b) No applicant may receive funding from a bank, credit union, other financial
183.2services provider, or vendor that is contingent on the applicant offering products or
183.3services of that bank, credit union, other financial services provider, or vendor to program
183.4participants.
183.5(c) An applicant may receive funding from a bank, credit union, other financial
183.6services provider, or vendor that is not in exchange for or contingent upon the applicant
183.7offering products or services of that bank, credit union, other financial services provider,
183.8or vendor to program participants.
183.9 Subd. 5. Permitted use of grant funds. (a) A grant recipient may use grant funds
183.10to dedicate a staff or volunteer position to coordinate financial capability services at a
183.11VITA or TCE site and to offer VITA or TCE program participants free assistance with the
183.12initiation through completion of:
183.13(1) opening a savings and a transactional account that meet the Federal Deposit
183.14Insurance Corporation's model safe accounts template standards;
183.15(2) depositing all or part of a tax refund into a savings or transactional account; and
183.16(3) purchasing a Series I United States Savings Bond with all or part of a tax refund.
183.17(b) A grant recipient who offers all of the financial capability services enumerated
183.18in paragraph (a) may also use grant funds to provide one or more additional financial
183.19capability services to VITA or TCE program participants at no cost to the participant.
183.20 Sec. 4. Minnesota Statutes 2014, section 271.08, subdivision 1, is amended to read:
183.21 Subdivision 1. Written order. The Tax Court, except in Small Claims Division,
183.22shall determine every appeal by written order containing findings of fact and the decision
183.23of the tax court. A memorandum of the grounds of the decision shall be appended. Notice
183.24of the entry of the order and of the substance of the decision shall be mailed to all parties.
183.25A motion for rehearing, which includes a motion for amended findings of fact, conclusions
183.26of law, or a new trial, must be served by the moving party within15 30 days after mailing
183.27of the notice by the court as specified in this subdivision, and the motion must be heard
183.28within30 60 days thereafter, unless the time for hearing is extended by the court within
183.29the30-day 60-day period for good cause shown.
183.30EFFECTIVE DATE.This section is effective the day following final enactment.
183.31 Sec. 5. Minnesota Statutes 2014, section 271.21, subdivision 2, is amended to read:
183.32 Subd. 2. Jurisdiction. At the election of the taxpayer, the Small Claims Division
183.33shall have jurisdiction only in the following matters:
183.34(a) cases involving valuation, assessment, or taxation of real or personal property, if:
184.1(i) the issue is a denial of a current year application for the homestead classification
184.2for the taxpayer's property;
184.3(ii) only one parcel is included in the petition, the entire parcel is classified as
184.4homestead class 1a or 1b under section273.13 , and the parcel contains no more than
184.5one dwelling unit;
184.6(iii) the entire property is classified as agricultural homestead class 2a or 1b under
184.7section273.13 ; or
184.8(iv) the assessor's estimated market value of the property included in the petition
184.9is less than $300,000; or
184.10(b) any case not involving valuation, assessment, or taxation of real and personal
184.11property in which the amount in controversy does not exceed$5,000 $15,000, including
184.12penalty and interest.
184.13EFFECTIVE DATE.This section is effective the day following final enactment.
184.14 Sec. 6. Minnesota Statutes 2014, section 289A.60, is amended by adding a subdivision
184.15to read:
184.16 Subd. 32. Sales suppression. (a) A person who:
184.17(1) sells;
184.18(2) transfers;
184.19(3) develops;
184.20(4) manufactures; or
184.21(5) possesses with the intent to sell or transfer
184.22an automated sales suppression device, zapper, phantom-ware, or similar device capable
184.23of being used to commit tax fraud or suppress sales is liable for a civil penalty calculated
184.24under paragraph (b).
184.25(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total
184.26amount of all taxes and penalties due that are attributable to the use of any automated
184.27sales suppression device, zapper, phantom-ware, or similar device facilitated by the sale,
184.28transfer, development, or manufacture of the automated sales suppression device, zapper,
184.29phantom-ware, or similar device by the person.
184.30(c) The definitions in section 609.858 apply to this subdivision.
184.31EFFECTIVE DATE.This section is effective for activities enumerated in
184.32paragraph (a) that occur after July 1, 2016.
184.33 Sec. 7. Minnesota Statutes 2014, section 290A.03, subdivision 13, is amended to read:
185.1 Subd. 13. Property taxes payable. "Property taxes payable" means the property tax
185.2exclusive of special assessments, penalties, and interest payable on a claimant's homestead
185.3after deductions made under sections273.135 ,
273.1384 ,
273.1391 ,
273.42, subdivision 2 ,
185.4and any other state paid property tax credits in any calendar year, and after any refund
185.5claimed and allowable under section290A.04, subdivision 2h , that is first payable in
185.6the year that the property tax is payable. In the case of a claimant who makes ground
185.7lease payments, "property taxes payable" includes the amount of the payments directly
185.8attributable to the property taxes assessed against the parcel on which the house is located.
185.9No apportionment or reduction of the "property taxes payable" shall be required for the
185.10use of a portion of the claimant's homestead for a business purpose if the claimant does
185.11not deduct any business depreciation expenses for the use of a portion of the homestead,
185.12or does not deduct expenses under section 280A of the Internal Revenue Code for a
185.13business operated in the home, in the determination of federal adjusted gross income. For
185.14homesteads which are manufactured homes as defined in section273.125, subdivision 8 ,
185.15and for homesteads which are park trailers taxed as manufactured homes under section
185.16168.012, subdivision 9
, "property taxes payable" shall also include 17 percent of the gross
185.17rent paid in the preceding year for the site on which the homestead is located. When
185.18a homestead is owned by two or more persons as joint tenants or tenants in common,
185.19such tenants shall determine between them which tenant may claim the property taxes
185.20payable on the homestead. If they are unable to agree, the matter shall be referred to the
185.21commissioner of revenue whose decision shall be final. Property taxes are considered
185.22payable in the year prescribed by law for payment of the taxes.
185.23In the case of a claim relating to "property taxes payable," the claimant must have
185.24owned and occupied the homestead on January 2 of the year in which the tax is payable
185.25and (i) the property must have been classified as homestead property pursuant to section
185.26273.124
, on or before December 15 of the assessment year to which the "property taxes
185.27payable" relate; or (ii) the claimant must provide documentation from the local assessor
185.28that application for homestead classification has been made on or before December 15
185.29of the year in which the "property taxes payable" were payable and that the assessor has
185.30approved the application.
185.31EFFECTIVE DATE.This section is effective for refunds based on rent paid after
185.32December 31, 2014, and property taxes payable after December 31, 2015.
185.33 Sec. 8. Minnesota Statutes 2014, section 469.169, is amended by adding a subdivision
185.34to read:
186.1 Subd. 20. Additional allocation; 2016. In addition to the tax reductions in
186.2subdivisions 12 to 19, $3,000,000 is allocated for tax reductions to border city enterprise
186.3zones in cities located on the western border of the state. The commissioner shall allocate
186.4this amount among cities on a per capita basis. Allocations under this subdivision may
186.5be used for tax reductions under sections 469.171, 469.1732, and 469.1734, or for other
186.6offsets of taxes imposed on or remitted by businesses located in the enterprise zone,
186.7but only if the municipality determines that the granting of the tax reduction or offset is
186.8necessary to retain a business within or attract a business to the zone.
186.9EFFECTIVE DATE.This section is effective July 1, 2016.
186.10 Sec. 9. Minnesota Statutes 2014, section 609.5316, subdivision 3, is amended to read:
186.11 Subd. 3. Weapons, telephone cloning paraphernalia, automated sales
186.12suppression devices, and bullet-resistant vests. Weapons used are contraband and
186.13must be summarily forfeited to the appropriate agency upon conviction of the weapon's
186.14owner or possessor for a controlled substance crime; for any offense of this chapter
186.15or chapter 624, or for a violation of an order for protection under section518B.01,
186.16subdivision 14 . Bullet-resistant vests, as defined in section
609.486 , worn or possessed
186.17during the commission or attempted commission of a crime are contraband and must be
186.18summarily forfeited to the appropriate agency upon conviction of the owner or possessor
186.19for a controlled substance crime or for any offense of this chapter. Telephone cloning
186.20paraphernalia used in a violation of section609.894 , and automated sales suppression
186.21devices, phantom-ware, and other devices containing an automated sales suppression or
186.22phantom-ware device or software used in violation of section 609.858, are contraband and
186.23must be summarily forfeited to the appropriate agency upon a conviction.
186.24 Sec. 10. [609.858] USE OF AUTOMATED SALES SUPPRESSION DEVICES.
186.25 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
186.26have the meanings given.
186.27(b) "Automated sales suppression device" or "zapper" means a software program,
186.28carried on any tangible medium, or accessed through any other means, that falsifies the
186.29electronic records of electronic cash registers and other point-of-sale systems including,
186.30but not limited to, transaction data and transaction reports.
186.31(c) "Electronic cash register" means a device that keeps a register or supporting
186.32documents through the means of an electronic device or computer system designed to
186.33record transaction data for the purpose of computing, compiling, or processing retail
186.34sales transaction data in whatever manner.
187.1(d) "Phantom-ware" means hidden preinstalled, or later-installed programming
187.2option embedded in the operating system of an electronic cash register or hardwired
187.3into the electronic cash register that can be used to create a virtual second electronic
187.4cash register or may eliminate or manipulate transaction records that may or may not be
187.5preserved in digital formats to represent the true or manipulated record of transactions in
187.6the electronic cash register.
187.7(e) "Transaction data" includes items purchased by a customer, the price of each
187.8item, the taxability determination for each item, a segregated tax amount for each of
187.9the taxed items, the date and time of the purchase, the name, address and identification
187.10number of the vendor, and the receipt or invoice number of the transaction.
187.11(f) "Transaction report" means a report documenting, but not limited to, the sales,
187.12taxes collected, media totals, and discount voids at an electronic cash register that is
187.13printed on cash register tape at the end of a day or shift, or a report documenting every
187.14action at an electronic cash register that is stored electronically.
187.15 Subd. 2. Felony. A person who sells, purchases, installs, transfers, possesses,
187.16develops, manufactures, accesses, or uses an automated sales suppression device, zapper,
187.17phantom-ware, or similar device knowing that the device or phantom-ware is capable
187.18of being used to commit tax fraud or suppress sales is guilty of a felony and may be
187.19sentenced to imprisonment for not more than five years or to a payment of a fine of not
187.20more than $10,000, or both.
187.21 Subd. 3. Forfeiture. An automated sales suppression device, zapper, phantom-ware,
187.22and any other device containing an automated sales suppression, zapper, or phantom-ware
187.23device or software is contraband and subject to forfeiture under section 609.5316.
187.24EFFECTIVE DATE.This section is effective August 1, 2015, and applies to crimes
187.25committed on or after that date.
187.26 Sec. 11. APPROPRIATIONS.
187.27 Subdivision 1. New markets grant program. $30,000,000 in fiscal year 2017 is
187.28appropriated from the general fund to the commissioner of employment and economic
187.29development for the new markets grant program under Minnesota Statutes, section
187.30116J.952. This appropriation is a onetime appropriation and is available until June 30,
187.312024. The commissioner may award grants of up to $10,000,000 per fiscal year.
187.32 Subd. 2. Department of Revenue. $5,000,000 in fiscal year 2017 is appropriated
187.33from the general fund to the commissioner of revenue for administering this act. The
187.34funding base for this appropriation in fiscal year 2018 and thereafter is $2,000,000.
188.1 Subd. 3. Tax time savings grant program. (a) $400,000 is appropriated in fiscal
188.2year 2017 from the general fund to the commissioner of revenue to make grants under the
188.3tax time savings grant program under Minnesota Statutes, section 270C.22. Of this amount,
188.4up to five percent may be used for the administration of the tax time savings grant program.
188.5(b) The base funding for the grant program authorized under paragraph (a) is
188.6$400,000 each year.
188.7 Subd. 4. Taxpayer assistance grants. (a) $400,000 is appropriated in fiscal year
188.82017 from the general fund to the commissioner of revenue for the provision of taxpayer
188.9assistance grants under Minnesota Statutes, section 270C.21, in addition to the current
188.10base funding for the program. Of the amount appropriated under this paragraph and the
188.11current base funding for the provision of taxpayer assistance grants, up to five percent may
188.12be used for the administration of the taxpayer assistance grants program.
188.13(b) Beginning in fiscal year 2018, the total base funding for the program under
188.14paragraph (a) is $800,000 each year. This amount includes the base funding of $400,000
188.15each year established in Laws 2015, chapter 77, article 1, section 14, subdivision 2,
188.16paragraph (a).
188.17 Subd. 5. Local government grants. (a) The following amounts are appropriated in
188.18fiscal year 2016 only from the general fund to the commissioner of revenue for grants that
188.19shall be paid by June 30, 2016, and allocated as follows:
188.20(1) $1,200,000 to the city of Madelia;
188.21(2) $465,000 to the city of Hibbing; and
188.22(3) $52,288 to Stearns County.
188.23(b) The following amounts are appropriated in fiscal year 2017 only from the
188.24general fund to the commissioner of revenue for grants that shall be paid by June 30,
188.252017, and allocated as follows:
188.26(1) $2,000,000 to Mahnomen County. Of this amount, $1,000,000 must be used
188.27by the county for the Mahnomen Health Center, and $1,000,000 must be paid from the
188.28county to the White Earth Band of Ojibwe;
188.29(2) $1,130,000 to Hennepin County. Of this amount, $730,000 must be used for the
188.30North Branch Library EMERGE Career and Technology Center, and $400,000 must be
188.31used for the Cedar Riverside Opportunity Center;
188.32(3) $1,000,000 to the city of Mahnomen; and
188.33(4) $150,000 to the city of Lilydale.
188.34(c) All of the appropriations under this subdivision are onetime and are not added
188.35to the base budget.
189.1EFFECTIVE DATE.This section is effective the day following final enactment.
189.5 Section 1. Minnesota Statutes 2014, section 289A.08, subdivision 11, is amended to
189.6read:
189.7 Subd. 11. Information included in income tax return. (a) The return must state:
189.8 (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the
189.9address of the taxpayer in the same name or names and same address as the taxpayer has
189.10used in making the taxpayer's income tax return to the United States;
189.11 (2) the date or dates of birth of the taxpayer or taxpayers;
189.12 (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security
189.13number has been issued by the United States with respect to the taxpayers; and
189.14 (4) the amount of the taxable income of the taxpayer as it appears on the federal
189.15return for the taxable year to which the Minnesota state return applies.
189.16 (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return
189.17a copy of the federal income tax return that the taxpayer has filed or is about to file for
189.18the period, unless the taxpayer is eligible to telefile the federal return and does file the
189.19Minnesota return by telefiling.
189.20EFFECTIVE DATE.This section is effective the day following final enactment.
189.21 Sec. 2. Minnesota Statutes 2014, section 289A.08, subdivision 16, is amended to read:
189.22 Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee
189.23imposed. (a) A "tax refund or return preparer," as defined in section289A.60, subdivision
189.2413
, paragraph (f), who is a tax return preparer for purposes of section 6011(e) of the
189.25Internal Revenue Code, and who reasonably expects to prepare more than ten Minnesota
189.26individual income, corporate franchise, S corporation, partnership, or fiduciary income tax
189.27returns for the priorcalendar year must file all Minnesota individual income, corporate
189.28franchise, S corporation, partnership, or fiduciary income tax returns prepared for that
189.29calendar year by electronic means.
189.30(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return
189.31that the taxpayer did not want the return filed by electronic means.
189.32(c) For each return that is not filed electronically by a tax refund or return preparer
189.33under this subdivision, including returns filed under paragraph (b), a paper filing fee
189.34of $5 is imposed upon the preparer. The fee is collected from the preparer in the same
190.1manner as income tax. The fee does not apply to returns that the commissioner requires
190.2to be filed in paper form.
190.3EFFECTIVE DATE.This section is effective for taxable years beginning after
190.4December 31, 2015.
190.5 Sec. 3. Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read:
190.6 Subd. 2. Withholding statement. (a) A person required to deduct and withhold
190.7from an employee a tax under section290.92, subdivision 2a or 3, or
290.923, subdivision
190.82 , or who would have been required to deduct and withhold a tax under section
290.92,
190.9subdivision 2a or 3, or persons required to withhold tax under section
290.923, subdivision
190.102 , determined without regard to section
290.92, subdivision 19 , if the employee or payee
190.11had claimed no more than one withholding exemption, or who paid wages or made
190.12payments not subject to withholding under section290.92, subdivision 2a or 3, or
290.923,
190.13subdivision 2 , to an employee or person receiving royalty payments in excess of $600,
190.14or who has entered into a voluntary withholding agreement with a payee under section
190.15290.92, subdivision 20
, must give every employee or person receiving royalty payments in
190.16respect to the remuneration paid by the person to the employee or person receiving royalty
190.17payments during the calendar year, on or before January 31 of the succeeding year, or, if
190.18employment is terminated before the close of the calendar year, within 30 days after the
190.19date of receipt of a written request from the employee if the 30-day period ends before
190.20January 31, a written statement showing the following:
190.21 (1) name of the person;
190.22 (2) the name of the employee or payee and the employee's or payee's Social Security
190.23account number;
190.24 (3) the total amount of wages as that term is defined in section290.92, subdivision
190.251 , paragraph (1); the total amount of remuneration subject to withholding under section
190.26290.92, subdivision 20
; the amount of sick pay as required under section 6051(f) of the
190.27Internal Revenue Code; and the amount of royalties subject to withholding under section
190.28290.923, subdivision 2
; and
190.29 (4) the total amount deducted and withheld as tax under section290.92, subdivision
190.302a or 3, or
290.923, subdivision 2 .
190.31 (b) The statement required to be furnished by paragraph (a) with respect to any
190.32remuneration must be furnished at those times, must contain the information required, and
190.33must be in the form the commissioner prescribes.
191.1 (c) The commissioner may prescribe rules providing for reasonable extensions of
191.2time, not in excess of 30 days, to employers or payers required to give the statements to
191.3their employees or payees under this subdivision.
191.4 (d) A duplicate of any statement made under this subdivision and in accordance
191.5with rules prescribed by the commissioner, along with a reconciliation in the form the
191.6commissioner prescribes of the statements for the calendar year, including a reconciliation
191.7of the quarterly returns required to be filed under subdivision 1, must be filed with the
191.8commissioner on or beforeFebruary 28 January 31 of the year after the payments were
191.9made.
191.10 (e) If an employer cancels the employer's Minnesota withholding account number
191.11required by section290.92, subdivision 24 , the information required by paragraph (d),
191.12must be filed with the commissioner within 30 days of the end of the quarter in which
191.13the employer cancels its account number.
191.14 (f) The employer must submit the statements required to be sent to the commissioner
191.15in the same manner required to satisfy the federal reporting requirements of section
191.166011(e) of the Internal Revenue Code and the regulations issued under it. An employer
191.17must submit statements to the commissioner required by this section by electronic means
191.18if the employer is required to send more than 25 statements to the commissioner, even
191.19though the employer is not required to submit the returns federally by electronic means.
191.20For statements issued for wages paid in 2011 and after, the threshold is ten. All statements
191.21issued for withholding required under section
290.92 are aggregated for purposes of
191.22determining whether the electronic submission threshold is met. The commissioner shall
191.23prescribe the content, format, and manner of the statement pursuant to section 270C.30.
191.24 (g) A "third-party bulk filer" as defined in section290.92, subdivision 30 , paragraph
191.25(a), clause (2), must submit the returns required by this subdivision and subdivision 1,
191.26paragraph (a), with the commissioner by electronic means.
191.27EFFECTIVE DATE.This section is effective for statements required to be sent
191.28to the commissioner after December 31, 2016, except that the date change in paragraph
191.29(d) is effective for wages paid after December 31, 2015.
191.30 Sec. 4. Minnesota Statutes 2014, section 289A.12, subdivision 14, is amended to read:
191.31 Subd. 14.Regulated investment companies; Reporting exempt interest and
191.32exempt-interest dividends. (a) A regulated investment company paying $10 or more in
191.33exempt-interest dividends to an individual who is a resident of Minnesota, or any person
191.34receiving $10 or more of exempt interest or exempt-interest dividends and paying as
191.35nominee to an individual who is a resident of Minnesota, must make a return indicating
192.1the amount of the exempt interest or exempt-interest dividends, the name, address, and
192.2Social Security number of the recipient, and any other information that the commissioner
192.3specifies. The return must be provided to theshareholder recipient by February 15 of the
192.4year following the year of the payment. The return provided to theshareholder recipient
192.5must include a clear statement, in the form prescribed by the commissioner, that the
192.6exempt interest or exempt-interest dividends must be included in the computation of
192.7Minnesota taxable income. By June 1 of each year, theregulated investment company
192.8payor must file a copy of the return with the commissioner.
192.9 (b) For purposes of this subdivision, the following definitions apply.
192.10 (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in
192.11section 852(b)(5) of the Internal Revenue Code, but does not include the portion of
192.12exempt-interest dividends that are not required to be added to federal taxable income
192.13under section290.01, subdivision 19a , clause (1)(ii).
192.14 (2) "Regulated investment company" means regulated investment company as
192.15defined in section 851(a) of the Internal Revenue Code or a fund of the regulated
192.16investment company as defined in section 851(g) of the Internal Revenue Code.
192.17 (3) "Exempt interest" means income on obligations of any state other than
192.18Minnesota, or a political or governmental subdivision, municipality, or governmental
192.19agency or instrumentality of any state other than Minnesota, and exempt from federal
192.20income taxes under the Internal Revenue Code or any other federal statute.
192.21EFFECTIVE DATE.This section is effective for reports required to be filed after
192.22December 31, 2016.
192.23 Sec. 5. Minnesota Statutes 2014, section 289A.18, is amended by adding a subdivision
192.24to read:
192.25 Subd. 2a. Annual withholding returns; eligible employers. (a) An employer who
192.26deducts and withholds an amount required to be withheld by section 290.92 may file an
192.27annual return and make an annual payment of the amount required to be deducted and
192.28withheld for that calendar year if the employer has received a notification under paragraph
192.29(b). The ability to elect to file an annual return continues through the year following the
192.30year where an employer is required to deduct and withhold more than $500.
192.31(b) The commissioner is authorized to determine which employers are eligible to
192.32file an annual return and to notify employers who newly qualify to file an annual return
192.33because the amount an employer is required to deduct and withhold for that calendar year
192.34is $500 or less based on the most recent period of four consecutive quarters for which the
192.35commissioner has compiled data on that employer's withholding tax for that period. At the
193.1time of notification, eligible employers may still decide to file returns and make deposits
193.2quarterly. An employer who decides to file returns and make deposits quarterly is required
193.3to make all returns and deposits required by this chapter and, notwithstanding paragraph
193.4(a), is subject to all applicable penalties for failing to do so.
193.5(c) If, at the end of any calendar month other than the last month of the calendar
193.6year, the aggregate amount of undeposited tax withheld by an employer who has elected to
193.7file an annual return exceeds $500, the employer must deposit the aggregate amount with
193.8the commissioner within 30 days of the end of the calendar month.
193.9(d) If an employer who has elected to file an annual return ceases to pay wages
193.10for which withholding is required, the employer must file a final return and deposit any
193.11undeposited tax within 30 days of the end of the calendar month following the month in
193.12which the employer ceased paying wages.
193.13(e) An employer not subject to paragraph (c) or (d) who elects to file an annual
193.14return must file the return and pay the tax not previously deposited before February 1 of
193.15the year following the year in which the tax was withheld.
193.16(f) A notification to an employer regarding eligibility to file an annual return under
193.17Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).
193.18EFFECTIVE DATE.This section is effective for taxable years beginning after
193.19December 31, 2015.
193.20 Sec. 6. Minnesota Statutes 2014, section 289A.20, subdivision 2, is amended to read:
193.21 Subd. 2. Withholding from wages, entertainer withholding, withholding
193.22from payments to out-of-state contractors, and withholding by partnerships, small
193.23business corporations, trusts. (a) Except as provided in section 289A.18, subdivision 2a,
193.24a tax required to be deducted and withheld during the quarterly period must be paid on
193.25or before the last day of the month following the close of the quarterly period, unless an
193.26earlier time for payment is provided. A tax required to be deducted and withheld from
193.27compensation of an entertainer and from a payment to an out-of-state contractor must be
193.28paid on or before the date the return for such tax must be filed under section289A.18,
193.29subdivision 2 . Taxes required to be deducted and withheld by partnerships, S corporations,
193.30and trusts must be paid on a quarterly basis as estimated taxes under section289A.25 for
193.31partnerships and trusts and under section289A.26 for S corporations.
193.32(b) An employer who, during the previous quarter, withheld more than $1,500 of
193.33tax under section290.92, subdivision 2a or 3, or
290.923, subdivision 2 , must deposit tax
193.34withheld under those sections with the commissioner within the time allowed to deposit
193.35the employer's federal withheld employment taxes under Code of Federal Regulations,
194.1title 26, section 31.6302-1, as amended through December 31, 2001, without regard to the
194.2safe harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3).
194.3Taxpayers must submit a copy of their federal notice of deposit status to the commissioner
194.4upon request by the commissioner.
194.5(c) The commissioner may prescribe by rule other return periods or deposit
194.6requirements. In prescribing the reporting period, the commissioner may classify payors
194.7according to the amount of their tax liability and may adopt an appropriate reporting
194.8period for the class that the commissioner judges to be consistent with efficient tax
194.9collection. In no event will the duration of the reporting period be more than one year.
194.10(d) If less than the correct amount of tax is paid to the commissioner, proper
194.11adjustments with respect to both the tax and the amount to be deducted must be made,
194.12without interest, in the manner and at the times the commissioner prescribes. If the
194.13underpayment cannot be adjusted, the amount of the underpayment will be assessed and
194.14collected in the manner and at the times the commissioner prescribes.
194.15(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year
194.16ending June 30, the employer must remit each required deposit for wages paid in all
194.17subsequent calendar years by electronic means.
194.18(f) A third-party bulk filer as defined in section290.92, subdivision 30 , paragraph
194.19(a), clause (2), who remits withholding deposits must remit all deposits by electronic
194.20means as provided in paragraph (e), regardless of the aggregate amount of tax withheld
194.21during a fiscal year for all of the employers.
194.22EFFECTIVE DATE.This section is effective for taxable years beginning after
194.23December 31, 2015.
194.24 Sec. 7. Minnesota Statutes 2014, section 289A.31, subdivision 1, is amended to read:
194.25 Subdivision 1. Individual income, fiduciary income, mining company, corporate
194.26franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining
194.27company, and corporate franchise taxes, and interest and penalties, must be paid by the
194.28taxpayer upon whom the tax is imposed, except in the following cases:
194.29(1) The tax due from a decedent for that part of the taxable year in which the
194.30decedent died during which the decedent was alive and the taxes, interest, and penalty
194.31due for the prior years must be paid by the decedent's personal representative, if any.
194.32If there is no personal representative, the taxes, interest, and penalty must be paid by
194.33the transferees, as defined in section270C.58, subdivision 3 , to the extent they receive
194.34property from the decedent;
195.1(2) The tax due from an infant or other incompetent person must be paid by the
195.2person's guardian or other person authorized or permitted by law to act for the person;
195.3(3) The tax due from the estate of a decedent must be paid by the estate's personal
195.4representative;
195.5(4) The tax due from a trust, including those within the definition of a corporation, as
195.6defined in section290.01, subdivision 4 , must be paid by a trustee; and
195.7(5) The tax due from a taxpayer whose business or property is in charge of a receiver,
195.8trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge of
195.9the business or property so far as the tax is due to the income from the business or property.
195.10(b) Entertainment taxes are the joint and several liability of the entertainer and the
195.11entertainment entity. The payor is liable to the state for the payment of the tax required to
195.12be deducted and withheld under section290.9201, subdivision 7 , and is not liable to the
195.13entertainer for the amount of the payment.
195.14(c) Thetax taxes imposed under section sections 289A.35 and
290.0922 on
195.15partnershipsis are the joint and several liability of the partnership and the general partners.
195.16EFFECTIVE DATE.This section is effective the day following final enactment.
195.17 Sec. 8. Minnesota Statutes 2014, section 289A.35, is amended to read:
195.18289A.35 ASSESSMENTS ON RETURNS.
195.19(a) The commissioner may audit and adjust the taxpayer's computation of federal
195.20taxable income, items of federal tax preferences, or federal credit amounts to make them
195.21conform with the provisions of chapter 290 or section298.01 . If a return has been filed,
195.22the commissioner shall enter the liability reported on the return and may make any audit
195.23or investigation that is considered necessary.
195.24(b) Upon petition by a taxpayer, and when the commissioner determines that it is in
195.25the best interest of the state, the commissioner may allow S corporations and partnerships
195.26to receive orders of assessment issued under section 270C.33, subdivision 4, on behalf
195.27of their owners, and to pay liabilities shown on such orders. In such cases, the owners'
195.28liability must be calculated using the method provided in section 289A.08, subdivision 7,
195.29paragraph (b).
195.30(c) A taxpayer may petition the commissioner for the use of the method described
195.31in paragraph (b) after the taxpayer is notified that an audit has been initiated and before
195.32an order of assessment has been issued.
195.33(d) A determination of the commissioner under paragraph (b) to grant or deny the
195.34petition of a taxpayer cannot be appealed to the Tax Court or any other court.
196.1(b) (e) The commissioner may audit and adjust the taxpayer's computation of
196.2tax under chapter 291. In the case of a return filed pursuant to section289A.10 , the
196.3commissioner shall notify the estate no later than nine months after the filing date, as
196.4provided by section289A.38, subdivision 2 , whether the return is under examination
196.5or the return has been processed as filed.
196.6EFFECTIVE DATE.This section is effective the day following final enactment.
196.7 Sec. 9. Minnesota Statutes 2014, section 289A.60, subdivision 28, is amended to read:
196.8 Subd. 28. Preparer identification number. Any Minnesotaindividual income tax
196.9return or claim for refund prepared by a "tax refund or return preparer" as defined in
196.10subdivision 13, paragraph (f), shall bear the identification number the preparer is required
196.11to use federally under section 6109(a)(4) of the Internal Revenue Code. A tax refund or
196.12return preparer who prepares a Minnesotaindividual income tax return return required
196.13by section 289A.08, subdivisions 1, 2, 3, and 7; or 289A.12, subdivision 3, or claim for
196.14refund and fails to include the required number on the return or claim is subject to a
196.15penalty of $50 for each failure.
196.16EFFECTIVE DATE.This section is effective for taxable years beginning after
196.17December 31, 2015.
196.18 Sec. 10. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:
196.19 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
196.20and trusts, there shall be subtracted from federal taxable income:
196.21 (1) net interest income on obligations of any authority, commission, or
196.22instrumentality of the United States to the extent includable in taxable income for federal
196.23income tax purposes but exempt from state income tax under the laws of the United States;
196.24 (2) if included in federal taxable income, the amount of any overpayment of income
196.25tax to Minnesota or to any other state, for any previous taxable year, whether the amount
196.26is received as a refund or as a credit to another taxable year's income tax liability;
196.27 (3) the amount paid to others, less the amount used to claim the credit allowed under
196.28section290.0674 , not to exceed $1,625 for each qualifying child in grades kindergarten
196.29to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
196.30transportation of each qualifying child in attending an elementary or secondary school
196.31situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
196.32resident of this state may legally fulfill the state's compulsory attendance laws, which
196.33is not operated for profit, and which adheres to the provisions of the Civil Rights Act
197.1of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
197.2tuition as defined in section290.0674, subdivision 1 , clause (1). As used in this clause,
197.3"textbooks" includes books and other instructional materials and equipment purchased
197.4or leased for use in elementary and secondary schools in teaching only those subjects
197.5legally and commonly taught in public elementary and secondary schools in this state.
197.6Equipment expenses qualifying for deduction includes expenses as defined and limited in
197.7section290.0674, subdivision 1 , clause (3). "Textbooks" does not include instructional
197.8books and materials used in the teaching of religious tenets, doctrines, or worship, the
197.9purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
197.10or materials for, or transportation to, extracurricular activities including sporting events,
197.11musical or dramatic events, speech activities, driver's education, or similar programs. No
197.12deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
197.13the qualifying child's vehicle to provide such transportation for a qualifying child. For
197.14purposes of the subtraction provided by this clause, "qualifying child" has the meaning
197.15given in section 32(c)(3) of the Internal Revenue Code;
197.16 (4) income as provided under section290.0802 ;
197.17 (5) to the extent included in federal adjusted gross income, income realized on
197.18disposition of property exempt from tax under section290.491 ;
197.19 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
197.20of the Internal Revenue Code in determining federal taxable income by an individual
197.21who does not itemize deductions for federal income tax purposes for the taxable year, an
197.22amount equal to 50 percent of the excess of charitable contributions over $500 allowable
197.23as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
197.24under the provisions of Public Law 109-1 and Public Law 111-126;
197.25 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
197.26qualify for a credit under section290.06, subdivision 22 , an amount equal to the carryover
197.27of subnational foreign taxes for the taxable year, but not to exceed the total subnational
197.28foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
197.29"federal foreign tax credit" means the credit allowed under section 27 of the Internal
197.30Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
197.31under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
197.32the extent they exceed the federal foreign tax credit;
197.33 (8) in each of the five tax years immediately following the tax year in which an
197.34addition is required under subdivision 19a, clause (7), or 19c, clause(12) (11), in the case of
197.35a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
197.36delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
198.1of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
198.2clause(12) (11), in the case of a shareholder of an S corporation, minus the positive value
198.3of any net operating loss under section 172 of the Internal Revenue Code generated for the
198.4tax year of the addition. The resulting delayed depreciation cannot be less than zero;
198.5 (9) job opportunity building zone income as provided under section469.316 ;
198.6 (10) to the extent included in federal taxable income, the amount of compensation
198.7paid to members of the Minnesota National Guard or other reserve components of the
198.8United States military for active service, including compensation for services performed
198.9under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
198.10service" means (i) state active service as defined in section190.05, subdivision 5a , clause
198.11(1); or (ii) federally funded state active service as defined in section190.05, subdivision
198.125b , and "active service" includes service performed in accordance with section
190.08,
198.13subdivision 3 ;
198.14 (11) to the extent included in federal taxable income, the amount of compensation
198.15paid to Minnesota residents who are members of the armed forces of the United States
198.16or United Nations for active duty performed under United States Code, title 10; or the
198.17authority of the United Nations;
198.18 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
198.19qualified donor's donation, while living, of one or more of the qualified donor's organs
198.20to another person for human organ transplantation. For purposes of this clause, "organ"
198.21means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
198.22"human organ transplantation" means the medical procedure by which transfer of a human
198.23organ is made from the body of one person to the body of another person; "qualified
198.24expenses" means unreimbursed expenses for both the individual and the qualified donor
198.25for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
198.26may be subtracted under this clause only once; and "qualified donor" means the individual
198.27or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
198.28individual may claim the subtraction in this clause for each instance of organ donation for
198.29transplantation during the taxable year in which the qualified expenses occur;
198.30 (13) in each of the five tax years immediately following the tax year in which an
198.31addition is required under subdivision 19a, clause (8), or 19c, clause(13) (12), in the case
198.32of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of
198.33the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause(13)
198.34(12), in the case of a shareholder of a corporation that is an S corporation, minus the
198.35positive value of any net operating loss under section 172 of the Internal Revenue Code
199.1generated for the tax year of the addition. If the net operating loss exceeds the addition for
199.2the tax year, a subtraction is not allowed under this clause;
199.3 (14) to the extent included in the federal taxable income of a nonresident of
199.4Minnesota, compensation paid to a service member as defined in United States Code, title
199.510, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
199.6Act, Public Law 108-189, section 101(2);
199.7 (15) to the extent included in federal taxable income, the amount of national service
199.8educational awards received from the National Service Trust under United States Code,
199.9title 42, sections 12601 to 12604, for service in an approved Americorps National Service
199.10program;
199.11(16) to the extent included in federal taxable income, discharge of indebtedness
199.12income resulting from reacquisition of business indebtedness included in federal taxable
199.13income under section 108(i) of the Internal Revenue Code. This subtraction applies only
199.14to the extent that the income was included in net income in a prior year as a result of the
199.15addition under subdivision 19a, clause (13);
199.16(17) the amount of the net operating loss allowed under section290.095, subdivision
199.1711 , paragraph (c);
199.18(18) the amount of expenses not allowed for federal income tax purposes due
199.19to claiming the railroad track maintenance credit under section 45G(a) of the Internal
199.20Revenue Code;
199.21(19) the amount of the limitation on itemized deductions under section 68(b) of the
199.22Internal Revenue Code;
199.23(20) the amount of the phaseout of personal exemptions under section 151(d) of
199.24the Internal Revenue Code; and
199.25(21) to the extent included in federal taxable income, the amount of qualified
199.26transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
199.27Revenue Code. The subtraction is limited to the lesser of the amount of qualified
199.28transportation fringe benefits received in excess of the limitations under section
199.29132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
199.30maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
199.31Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
199.32of the Internal Revenue Code.
199.33EFFECTIVE DATE.This section is effective the day following final enactment.
199.34 Sec. 11. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:
200.1 Subd. 19c. Corporations; additions to federal taxable income. For corporations,
200.2there shall be added to federal taxable income:
200.3 (1) the amount of any deduction taken for federal income tax purposes for income,
200.4excise, or franchise taxes based on net income or related minimum taxes, including but not
200.5limited to the tax imposed under section290.0922 , paid by the corporation to Minnesota,
200.6another state, a political subdivision of another state, the District of Columbia, or any
200.7foreign country or possession of the United States;
200.8 (2) interest not subject to federal tax upon obligations of: the United States, its
200.9possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
200.10state, any of its political or governmental subdivisions, any of its municipalities, or any
200.11of its governmental agencies or instrumentalities; the District of Columbia; or Indian
200.12tribal governments;
200.13 (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
200.14Revenue Code;
200.15 (4) the amount of any net operating loss deduction taken for federal income tax
200.16purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
200.17deduction under section 810 of the Internal Revenue Code;
200.18 (5) the amount of any special deductions taken for federal income tax purposes
200.19under sections 241 to 247 and 965 of the Internal Revenue Code;
200.20 (6) losses from the business of mining, as defined in section290.05, subdivision 1 ,
200.21clause (a), that are not subject to Minnesota income tax;
200.22 (7) the amount of any capital losses deducted for federal income tax purposes under
200.23sections 1211 and 1212 of the Internal Revenue Code;
200.24 (8) the amount of percentage depletion deducted under sections 611 through 614 and
200.25291 of the Internal Revenue Code;
200.26(9) for certified pollution control facilities placed in service in a taxable year
200.27beginning before December 31, 1986, and for which amortization deductions were elected
200.28under section 169 of the Internal Revenue Code of 1954, as amended through December
200.2931, 1985, the amount of the amortization deduction allowed in computing federal taxable
200.30income for those facilities;
200.31(10) (9) the amount of a partner's pro rata share of net income which does not flow
200.32through to the partner because the partnership elected to pay the tax on the income under
200.33section 6242(a)(2) of the Internal Revenue Code;
200.34(11) (10) any increase in subpart F income, as defined in section 952(a) of the
200.35Internal Revenue Code, for the taxable year when subpart F income is calculated without
200.36regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
201.1(12) (11) 80 percent of the depreciation deduction allowed under section
201.2168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if
201.3the taxpayer has an activity that in the taxable year generates a deduction for depreciation
201.4under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable
201.5year that the taxpayer is not allowed to claim for the taxable year, "the depreciation
201.6allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess
201.7of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A)
201.8over the amount of the loss from the activity that is not allowed in the taxable year. In
201.9succeeding taxable years when the losses not allowed in the taxable year are allowed, the
201.10depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
201.11(13) (12) 80 percent of the amount by which the deduction allowed by section 179 of
201.12the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
201.13Revenue Code of 1986, as amended through December 31, 2003;
201.14(14) (13) to the extent deducted in computing federal taxable income, the amount of
201.15the deduction allowable under section 199 of the Internal Revenue Code;
201.16(15) (14) the amount of expenses disallowed under section
290.10, subdivision 2 ; and
201.17(16) (15) discharge of indebtedness income resulting from reacquisition of business
201.18indebtedness and deferred under section 108(i) of the Internal Revenue Code.
201.19EFFECTIVE DATE.This section is effective the day following final enactment.
201.20 Sec. 12. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:
201.21 Subd. 19d. Corporations; modifications decreasing federal taxable income. For
201.22corporations, there shall be subtracted from federal taxable income after the increases
201.23provided in subdivision 19c:
201.24 (1) the amount of foreign dividend gross-up added to gross income for federal
201.25income tax purposes under section 78 of the Internal Revenue Code;
201.26 (2) the amount of salary expense not allowed for federal income tax purposes due to
201.27claiming the work opportunity credit under section 51 of the Internal Revenue Code;
201.28 (3) any dividend (not including any distribution in liquidation) paid within the
201.29taxable year by a national or state bank to the United States, or to any instrumentality of
201.30the United States exempt from federal income taxes, on the preferred stock of the bank
201.31owned by the United States or the instrumentality;
201.32 (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the
201.33Internal Revenue Code, except that:
201.34 (i) for capital losses incurred in taxable years beginning after December 31, 1986,
201.35capital loss carrybacks shall not be allowed;
202.1 (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
202.2a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
202.3allowed;
202.4 (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
202.5capital loss carryback to each of the three taxable years preceding the loss year, subject to
202.6the provisions of Minnesota Statutes 1986, section290.16 , shall be allowed; and
202.7 (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
202.8a capital loss carryover to each of the five taxable years succeeding the loss year to the
202.9extent such loss was not used in a prior taxable year and subject to the provisions of
202.10Minnesota Statutes 1986, section290.16 , shall be allowed;
202.11 (5) an amount for interest and expenses relating to income not taxable for federal
202.12income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
202.13expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
202.14291 of the Internal Revenue Code in computing federal taxable income;
202.15 (6) in the case of mines, oil and gas wells, other natural deposits, and timber for
202.16which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a
202.17reasonable allowance for depletion based on actual cost. In the case of leases the deduction
202.18must be apportioned between the lessor and lessee in accordance with rules prescribed
202.19by the commissioner. In the case of property held in trust, the allowable deduction must
202.20be apportioned between the income beneficiaries and the trustee in accordance with the
202.21pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
202.22of the trust's income allocable to each;
202.23(7) for certified pollution control facilities placed in service in a taxable year
202.24beginning before December 31, 1986, and for which amortization deductions were elected
202.25under section 169 of the Internal Revenue Code of 1954, as amended through December
202.2631, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
202.271986, section
290.09, subdivision 7;
202.28(8) (7) amounts included in federal taxable income that are due to refunds of
202.29income, excise, or franchise taxes based on net income or related minimum taxes paid
202.30by the corporation to Minnesota, another state, a political subdivision of another state,
202.31the District of Columbia, or a foreign country or possession of the United States to the
202.32extent that the taxes were added to federal taxable income under subdivision 19c, clause
202.33(1), in a prior taxable year;
202.34(9) (8) income or gains from the business of mining as defined in section
290.05,
202.35subdivision 1 , clause (a), that are not subject to Minnesota franchise tax;
203.1(10) (9) the amount of disability access expenditures in the taxable year which are not
203.2allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
203.3(11) (10) the amount of qualified research expenses not allowed for federal income
203.4tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
203.5that the amount exceeds the amount of the credit allowed under section290.068 ;
203.6(12) (11) the amount of salary expenses not allowed for federal income tax purposes
203.7due to claiming the Indian employment credit under section 45A(a) of the Internal
203.8Revenue Code;
203.9(13) (12) any decrease in subpart F income, as defined in section 952(a) of the
203.10Internal Revenue Code, for the taxable year when subpart F income is calculated without
203.11regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
203.12(14) (13) in each of the five tax years immediately following the tax year in which an
203.13addition is required under subdivision 19c, clause(12) (11), an amount equal to one-fifth
203.14of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
203.15amount of the addition made by the taxpayer under subdivision 19c, clause(12) (11). The
203.16resulting delayed depreciation cannot be less than zero;
203.17(15) (14) in each of the five tax years immediately following the tax year in which an
203.18addition is required under subdivision 19c, clause(13) (12), an amount equal to one-fifth
203.19of the amount of the addition;
203.20(16) (15) to the extent included in federal taxable income, discharge of indebtedness
203.21income resulting from reacquisition of business indebtedness included in federal taxable
203.22income under section 108(i) of the Internal Revenue Code. This subtraction applies only
203.23to the extent that the income was included in net income in a prior year as a result of the
203.24addition under subdivision 19c, clause(16) (15); and
203.25(17) (16) the amount of expenses not allowed for federal income tax purposes due
203.26to claiming the railroad track maintenance credit under section 45G(a) of the Internal
203.27Revenue Code.
203.28EFFECTIVE DATE.This section is effective the day following final enactment.
203.29 Sec. 13. Minnesota Statutes 2014, section 290.0672, subdivision 1, is amended to read:
203.30 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
203.31have the meanings given.
203.32(b) "Long-term care insurance" means a policy that:
203.33(1) qualifies for a deduction under section 213 of the Internal Revenue Code,
203.34disregarding the7.5 percent adjusted gross income test; or meets the requirements
204.1given in section62A.46 ; or provides similar coverage issued under the laws of another
204.2jurisdiction; and
204.3(2) has a lifetime long-term care benefit limit of not less than $100,000; and
204.4(3) has been offered in compliance with the inflation protection requirements of
204.5section62S.23 .
204.6(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
204.7(d) "Premiums deducted in determining federal taxable income" means the lesser of
204.8(1) long-term care insurance premiums that qualify as deductions under section 213 of
204.9the Internal Revenue Code; and (2) the total amount deductible for medical care under
204.10section 213 of the Internal Revenue Code.
204.11EFFECTIVE DATE.This section is effective retroactively for taxable years
204.12beginning after December 31, 2012.
204.13 Sec. 14. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:
204.14 Subd. 2. Definitions. For purposes of this section, the following terms have the
204.15meanings given.
204.16 (a) "Qualified research expenses" means (i) qualified research expenses and basic
204.17research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
204.18it does not include expenses incurred for qualified research or basic research conducted
204.19outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue
204.20Code; and (ii) contributions to a nonprofit corporation established and operated pursuant
204.21to the provisions of chapter 317A for the purpose of promoting the establishment and
204.22expansion of business in this state, provided the contributions are invested by the nonprofit
204.23corporation for the purpose of providing funds for small, technologically innovative
204.24enterprises in Minnesota during the early stages of their development.
204.25 (b) "Qualified research" means qualified research as defined in section 41(d) of the
204.26Internal Revenue Code, except that the term does not include qualified research conducted
204.27outside the state of Minnesota.
204.28 (c) "Base amount" means base amount as defined in section 41(c) of the Internal
204.29Revenue Code, except that the average annual gross receipts and aggregate gross receipts
204.30must be calculated using Minnesota sales or receipts under section290.191 and the
204.31definitions contained inclauses paragraphs (a) and (b) shall apply.
204.32EFFECTIVE DATE.This section is effective the day following final enactment.
204.33 Sec. 15. Minnesota Statutes 2014, section 290.091, subdivision 3, is amended to read:
205.1 Subd. 3. Exemption amount. (a) For purposes of computing the alternative
205.2minimum tax, the exemption amount is, for taxable years beginning after December 31,
205.32005, $60,000 for married couples filing joint returns, $30,000 for married individuals
205.4filing separate returns, estates, and trusts, and $45,000 for unmarried individuals.
205.5 (b) The exemption amount determined under this subdivision is subject to the phase
205.6out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum
205.7taxable income as determined under this section must be substituted in the computation of
205.8the phase out.
205.9 (c) For taxable years beginning after December 31, 2006, the exemption amount
205.10under paragraph (a), clause (2), must be adjusted for inflation. The commissioner shall
205.11adjust the exemption amount by the percentage determined pursuant to the provisions of
205.12section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2005"
205.13shall be substituted for the word "1992." For 2007, the commissioner shall then determine
205.14the percent change from the 12 months ending on August 31, 2005, to the 12 months
205.15ending on August 31, 2006, and in each subsequent year, from the 12 months ending on
205.16August 31, 2005, to the 12 months ending on August 31 of the year preceding the taxable
205.17year. The exemption amount as adjusted must be rounded to the nearest $10. If the amount
205.18ends in $5, it must be rounded up to the nearest $10 amount. The determination of the
205.19commissioner under this subdivision is not a rule under the Administrative Procedure Act.
205.20EFFECTIVE DATE.This section is effective the day following final enactment.
205.21 Sec. 16. Minnesota Statutes 2014, section 290.0921, subdivision 3, is amended to read:
205.22 Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable
205.23income" is Minnesota net income as defined in section290.01, subdivision 19 , and
205.24includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
205.25(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
205.26Minnesota tax return, the minimum tax must be computed on a separate company basis.
205.27If a corporation is part of a tax group filing a unitary return, the minimum tax must be
205.28computed on a unitary basis. The following adjustments must be made.
205.29(1) The portion of the depreciation deduction allowed for federal income tax
205.30purposes under section 168(k) of the Internal Revenue Code that is required as an addition
205.31under section290.01, subdivision 19c , clause (12) (11), is disallowed in determining
205.32alternative minimum taxable income.
205.33(2) The subtraction for depreciation allowed under section290.01, subdivision
205.3419d , clause (14) (13), is allowed as a depreciation deduction in determining alternative
205.35minimum taxable income.
206.1(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
206.2of the Internal Revenue Code does not apply.
206.3(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
206.4Revenue Code does not apply.
206.5(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue
206.6Code does not apply.
206.7(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
206.8Revenue Code does not apply.
206.9(7) The tax preference for charitable contributions of appreciated property under
206.10section 57(a)(6) of the Internal Revenue Code does not apply.
206.11(8) For purposes of calculating the adjustment for adjusted current earnings in
206.12section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
206.13income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
206.14minimum taxable income as defined in this subdivision, determined without regard to the
206.15adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
206.16(9) For purposes of determining the amount of adjusted current earnings under
206.17section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
206.1856(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
206.19gross-up subtracted as provided in section290.01, subdivision 19d , clause (1), or (ii) the
206.20amount of refunds of income, excise, or franchise taxes subtracted as provided in section
206.21290.01, subdivision 19d
, clause (8) (7).
206.22(10) Alternative minimum taxable income excludes the income from operating in a
206.23job opportunity building zone as provided under section469.317 .
206.24Items of tax preference must not be reduced below zero as a result of the
206.25modifications in this subdivision.
206.26EFFECTIVE DATE.This section is effective the day following final enactment.
206.27 Sec. 17. Minnesota Statutes 2014, section 290.17, subdivision 2, is amended to read:
206.28 Subd. 2. Income not derived from conduct of a trade or business. The income of
206.29a taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
206.30business must be assigned in accordance with paragraphs (a) to (f):
206.31 (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in
206.32section 3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the
206.33extent that, the work of the employee is performed within it; all other income from such
206.34sources is treated as income from sources without this state.
207.1 Severance pay shall be considered income from labor or personal or professional
207.2services.
207.3 (2) In the case of an individual who is a nonresident of Minnesota and who is an
207.4athlete or entertainer, income from compensation for labor or personal services performed
207.5within this state shall be determined in the following manner:
207.6 (i) The amount of income to be assigned to Minnesota for an individual who is a
207.7nonresident salaried athletic team employee shall be determined by using a fraction in
207.8which the denominator contains the total number of days in which the individual is under
207.9a duty to perform for the employer, and the numerator is the total number of those days
207.10spent in Minnesota. For purposes of this paragraph, off-season training activities, unless
207.11conducted at the team's facilities as part of a team imposed program, are not included in
207.12the total number of duty days. Bonuses earned as a result of play during the regular season
207.13or for participation in championship, play-off, or all-star games must be allocated under
207.14the formula. Signing bonuses are not subject to allocation under the formula if they are
207.15not conditional on playing any games for the team, are payable separately from any other
207.16compensation, and are nonrefundable; and
207.17 (ii) The amount of income to be assigned to Minnesota for an individual who is a
207.18nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's
207.19athletic or entertainment performance in Minnesota shall be determined by assigning to
207.20this state all income from performances or athletic contests in this state.
207.21 (3) For purposes of this section, amounts received by a nonresident as "retirement
207.22income" as defined in section (b)(1) of the State Income Taxation of Pension Income
207.23Act, Public Law 104-95, are not considered income derived from carrying on a trade
207.24or business or from wages or other compensation for work an employee performed in
207.25Minnesota, and are not taxable under this chapter.
207.26 (b) Income or gains from tangible property located in this state that is not employed
207.27in the business of the recipient of the income or gains must be assigned to this state.
207.28 (c) Income or gains from intangible personal property not employed in the business
207.29of the recipient of the income or gains must be assigned to this state if the recipient of the
207.30income or gains is a resident of this state or is a resident trust or estate.
207.31 Gain on the sale of a partnership interest is allocable to this state in the ratio of the
207.32original cost of partnership tangible property in this state to the original cost of partnership
207.33tangible property everywhere, determined at the time of the sale. If more than 50 percent
207.34of the value of the partnership's assets consists of intangibles, gain or loss from the sale
207.35of the partnership interest is allocated to this state in accordance with the sales factor of
208.1the partnership for its first full tax period immediately preceding the tax period of the
208.2partnership during which the partnership interest was sold.
208.3Gain on the sale of an interest in a single member limited liability company that
208.4is disregarded for federal income tax purposes is allocable to this state as if the single
208.5member limited liability company did not exist and the assets of the limited liability
208.6company are personally owned by the sole member.
208.7 Gain on the sale of goodwill or income from a covenant not to compete that is
208.8connected with a business operating all or partially in Minnesota is allocated to this state
208.9to the extent that the income from the business in the year preceding the year of sale was
208.10assignable allocable to Minnesota under subdivision 3.
208.11 When an employer pays an employee for a covenant not to compete, the income
208.12allocated to this state is in the ratio of the employee's service in Minnesota in the calendar
208.13year preceding leaving the employment of the employer over the total services performed
208.14by the employee for the employer in that year.
208.15 (d) Income from winnings on a bet made by an individual while in Minnesota is
208.16assigned to this state. In this paragraph, "bet" has the meaning given in section609.75,
208.17subdivision 2 , as limited by section
609.75, subdivision 3 , clauses (1), (2), and (3).
208.18 (e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
208.19taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
208.20 (f) For the purposes of this section, working as an employee shall not be considered
208.21to be conducting a trade or business.
208.22EFFECTIVE DATE.This section is effective the day following final enactment.
208.23 Sec. 18. Minnesota Statutes 2014, section 290.31, subdivision 1, is amended to read:
208.24 Subdivision 1. Partners, not partnership, subject to tax. Except as provided
208.25under section 289A.35, paragraph (b), a partnership as such shall not be subject to the
208.26income tax imposed by this chapter, but is subject to the tax imposed under section
208.27290.0922
. Persons carrying on business as partners shall be liable for income tax only
208.28in their separate or individual capacities.
208.29EFFECTIVE DATE.This section is effective the day following final enactment.
208.30 Sec. 19. Minnesota Statutes 2014, section 290A.19, is amended to read:
208.31290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT
208.32CERTIFICATE.
209.1(a) The owner or managing agent of any property for which rent is paid for
209.2occupancy as a homestead must furnish a certificate of rent paid to a person who is a
209.3renter on December 31, in the form prescribed by the commissioner. If the renter moves
209.4before December 31, the owner or managing agent may give the certificate to the renter
209.5at the time of moving, or mail the certificate to the forwarding address if an address has
209.6been provided by the renter. The certificate must be made available to the renter before
209.7February 1 of the year following the year in which the rent was paid. The owner or
209.8managing agent must retain a duplicate of each certificate or an equivalent record showing
209.9the same information for a period of three years. The duplicate or other record must be
209.10made available to the commissioner upon request.
209.11(b) The commissioner may require the owner or managing agent, through a
209.12simple process, to furnish to the commissioner on or before March 1 a copy of each
209.13certificate of rent paid furnished to a renter for rent paid in the prior year, in the content,
209.14format, and manner prescribed by the commissioner pursuant to section 270C.30. Prior
209.15to implementation, the commissioner, after consulting with representatives of owners
209.16or managing agents, shall develop an implementation and administration plan for the
209.17requirements of this paragraph that attempts to minimize financial burdens, administration
209.18and compliance costs, and takes into consideration existing systems of owners and
209.19managing agents.
209.20(c) For the purposes of this section, "owner" includes a park owner as defined under
209.21section327C.01, subdivision 6 , and "property" includes a lot as defined under section
209.22327C.01, subdivision 3
.
209.23EFFECTIVE DATE.This section is effective for certificates of rent paid furnished
209.24to a renter for rent paid after December 31, 2015.
209.25 Sec. 20. Minnesota Statutes 2014, section 291.016, subdivision 2, is amended to read:
209.26 Subd. 2. Additions. The following amounts, to the extent deducted in computing
209.27or otherwise excluded from the federal taxable estate, must be added in computing the
209.28Minnesota taxable estate:
209.29(1) the amount of the deduction for state death taxes allowed under section 2058 of
209.30the Internal Revenue Code;
209.31(2) the amount of the deduction for foreign death taxes allowed under section
209.322053(d) of the Internal Revenue Code; and
209.33(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal
209.34Revenue Code, made by the decedent within three years of the date of death. For purposes
210.1of this clause, the amount of the addition equals the value of the gift under section 2512 of
210.2the Internal Revenue Code and excludes any value of the gift included in the federal estate.
210.3EFFECTIVE DATE.This section is effective retroactively for estates of decedents
210.4dying after June 30, 2013.
210.5 Sec. 21. Minnesota Statutes 2014, section 291.016, subdivision 3, is amended to read:
210.6 Subd. 3. Subtraction. The following amounts, to the extent included in computing
210.7the federal taxable estate, may be subtracted in computing the Minnesota taxable estate
210.8but must not reduce the Minnesota taxable estate to less than zero:
210.9(1) the value of property subject to an election under section 291.03, subdivision
210.101d; and
210.11(2) the value of qualified small business property under section291.03, subdivision
210.129 , and the value of qualified farm property under section
291.03, subdivision 10 , or the
210.13result of $5,000,000 minus the amount for the year of death listed inclauses (1) to (5)
210.14items (i) to (v), whichever is less, may be subtracted in computing the Minnesota taxable
210.15estate but must not reduce the Minnesota taxable estate to less than zero:
210.16(1) (i) $1,200,000 for estates of decedents dying in 2014;
210.17(2) (ii) $1,400,000 for estates of decedents dying in 2015;
210.18(3) (iii) $1,600,000 for estates of decedents dying in 2016;
210.19(4) (iv) $1,800,000 for estates of decedents dying in 2017; and
210.20(5) (v) $2,000,000 for estates of decedents dying in 2018 and thereafter.
210.21EFFECTIVE DATE.This section is effective retroactively for estates of decedents
210.22dying after June 30, 2011.
210.23 Sec. 22. Minnesota Statutes 2014, section 291.03, subdivision 9, is amended to read:
210.24 Subd. 9. Qualified small business property. Property satisfying all of the following
210.25requirements is qualified small business property:
210.26(1) The value of the property was included in the federal adjusted taxable estate.
210.27(2) The property consists of the assets of a trade or business or shares of stock or other
210.28ownership interests in a corporation or other entity engaged in a trade or business. Shares
210.29of stock in a corporation or an ownership interest in another type of entity do not qualify
210.30under this subdivision if the shares or ownership interests are traded on a public stock
210.31exchange at any time during the three-year period ending on the decedent's date of death.
210.32For purposes of this subdivision, an ownership interest includes the interest the decedent
210.33is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
211.1(3) During the taxable year that ended before the decedent's death, the trade or
211.2business must not have been a passive activity within the meaning of section 469(c) of the
211.3Internal Revenue Code, and the decedent or the decedent's spouse must have materially
211.4participated in the trade or business within the meaning of section 469(h) of the Internal
211.5Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other
211.6provision provided by United States Treasury Department regulation that substitutes
211.7material participation in prior taxable years for material participation in the taxable year
211.8that ended before the decedent's death.
211.9(4) The gross annual sales of the trade or business were $10,000,000 or less for the
211.10last taxable year that ended before the date of the death of the decedent.
211.11(5) The property does notconsist of include:
211.12(i) cash,;
211.13(ii) cash equivalents,;
211.14(iii) publicly traded securities,; or
211.15(iv) any assets not used in the operation of the trade or business.
211.16(6) For property consisting of shares of stock or other ownership interests in an
211.17entity, the value ofcash, cash equivalents, publicly traded securities, or assets not used
211.18in the operation of the trade or business held by the corporation or other entity items
211.19described in clause (5) must bededucted from the value of the property qualifying under
211.20this subdivision in proportion to the decedent's share of ownership of the entity on the date
211.21of death excluded in the valuation of the decedent's interest in the entity.
211.22(6) (7) The decedent continuously owned the property, including property the
211.23decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue
211.24Code, for the three-year period ending on the date of death of the decedent. In the case of
211.25a sole proprietor, if the property replaced similar property within the three-year period,
211.26the replacement property will be treated as having been owned for the three-year period
211.27ending on the date of death of the decedent.
211.28(7) (8) For three years following the date of death of the decedent, the trade or business
211.29is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code,
211.30and a family member materially participates in the operation of the trade or business within
211.31the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
211.32of the Internal Revenue Code and any other provision provided by United States Treasury
211.33Department regulation that substitutes material participation in prior taxable years for
211.34material participation in the three years following the date of death of the decedent.
212.1(8) (9) The estate and the qualified heir elect to treat the property as qualified small
212.2business property and agree, in the form prescribed by the commissioner, to pay the
212.3recapture tax under subdivision 11, if applicable.
212.4EFFECTIVE DATE.This section is effective retroactively for estates of decedents
212.5dying after June 30, 2011.
212.6 Sec. 23. Minnesota Statutes 2014, section 291.03, subdivision 11, is amended to read:
212.7 Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and
212.8before the death of the qualified heir, the qualified heir disposes of any interest in the
212.9qualified property, other than by a disposition to a family member, or a family member
212.10ceases to satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an
212.11additional estate tax is imposed on the property. In the case of a sole proprietor, if the
212.12qualified heir replaces qualified small business property excluded under subdivision 9
212.13with similar property, then the qualified heir will not be treated as having disposed of an
212.14interest in the qualified property.
212.15(b) The amount of the additional tax equals the amount of the exclusion claimed by
212.16the estate under subdivision 8, paragraph (d), multiplied by 16 percent.
212.17(c) The additional tax under this subdivision is due on the day which is six months
212.18after the date of the disposition or cessation in paragraph (a).
212.19(d) This subdivision shall not apply as a result of any of the following:
212.20(1) a portion of qualified farm property consisting of less than one-fifth of the acreage
212.21of the property is reclassified as class 2b property under section 273.13, subdivision 23,
212.22and the qualified heir has not substantially altered the reclassified property during the
212.23three-year holding period; or
212.24(2) a portion of qualified farm property classified as 2a property at the death of
212.25the decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a
212.26residence, garage, and immediately surrounding one acre of land is reclassified as 4bb
212.27property during the three-year holding period, and the qualified heir has not substantially
212.28altered the property.
212.29EFFECTIVE DATE.This section is effective retroactively for estates of decedents
212.30dying after June 30, 2011.
212.31 Sec. 24. Minnesota Statutes 2014, section 291.031, is amended to read:
212.32291.031 CREDIT.
213.1(a) The estate of a nonresident decedent that is subject to tax under this chapter on
213.2the value of Minnesota situs property held in a pass-through entity is allowed a credit
213.3against the tax due under section291.03 equal to the lesser of:
213.4(1) the amount of estate or inheritance tax paid to another state that is attributable to
213.5the Minnesota situs property held in the pass-through entity; or
213.6(2) the amount of taxpaid under this section due under section 291.03 attributable to
213.7the Minnesota situs property held in the pass-through entity.
213.8(b) The amount of tax attributable to the Minnesota situs property held in the
213.9pass-through entity must be determined by the increase in the estate or inheritance tax that
213.10results from including the market value of the property in the estate or treating the value
213.11as a taxable inheritance to the recipient of the property.
213.12EFFECTIVE DATE.This section is effective retroactively for estates of decedents
213.13dying after December 31, 2013.
213.14 Sec. 25. REPEALER.
213.15(a) Minnesota Rules, part 8092.1400, is repealed.
213.16(b) Minnesota Rules, part 8092.2000, is repealed.
213.17EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after
213.18December 31, 2015, except that notifications from the Department of Revenue to
213.19employers regarding eligibility to file an annual return for taxes withheld in calendar year
213.202016 remain in force. Paragraph (b) is effective the day following final enactment.
213.24 Section 1. Minnesota Statutes 2014, section 69.021, subdivision 5, is amended to read:
213.25 Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for
213.26apportionment, before the addition of the minimum fire state aid allocation amount under
213.27subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state
213.28upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to
213.29the commissioner by insurers on the Minnesota Firetown Premium Report. This amount
213.30must be reduced by the amount required to pay the state auditor's costs and expenses of
213.31the audits or exams of the firefighters relief associations.
213.32The total amount for apportionment in respect to fire state aid must not be less than
213.33two percent of the premiums reported to the commissioner by insurers on the Minnesota
213.34Firetown Premium Report after subtracting the following amounts:
214.1(1) the amount required to pay the state auditor's costs and expenses of the audits or
214.2exams of the firefighters relief associations; and
214.3(2) one percent of the premiums reported bytown and farmers' township mutual
214.4insurance companies and mutual property and casualty companies with total assets of
214.5$5,000,000 or less.
214.6(b) The total amount for apportionment as police state aid is equal to 104 percent
214.7of the amount of premium taxes paid to the state on the premiums reported to the
214.8commissioner by insurers on the Minnesota Aid to Police Premium Report. The total
214.9amount for apportionment in respect to the police state aid program must not be less than
214.10two percent of the amount of premiums reported to the commissioner by insurers on the
214.11Minnesota Aid to Police Premium Report.
214.12(c) The commissioner shall calculate the percentage of increase or decrease reflected
214.13in the apportionment over or under the previous year's available state aid using the same
214.14premiums as a basis for comparison.
214.15(d) In addition to the amount for apportionment of police state aid under paragraph
214.16(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to
214.17pay this increase is annually appropriated from the general fund.
214.18EFFECTIVE DATE.This section is effective the day following final enactment.
214.19 Sec. 2. Minnesota Statutes 2014, section 289A.38, subdivision 6, is amended to read:
214.20 Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed
214.21within 6-1/2 years after the due date of the return or the date the return was filed,
214.22whichever is later, if:
214.23(1) the taxpayer omits from gross income an amount properly includable in it that is
214.24in excess of 25 percent of the amount of gross income stated in the return;
214.25(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a
214.26tax imposed under section 295.52, an amount of taxes in excess of 25 percent of the
214.27taxes reported in the return; or
214.28(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the
214.29gross estate reported in the return.
214.30EFFECTIVE DATE.This section is effective the day following final enactment.
214.31 Sec. 3. Minnesota Statutes 2014, section 290.0922, subdivision 2, is amended to read:
214.32 Subd. 2. Exemptions. The following entities are exempt from the tax imposed
214.33by this section:
215.1(1) corporations exempt from tax under section290.05 ;
215.2(2) real estate investment trusts;
215.3(3) regulated investment companies or a fund thereof; and
215.4(4) entities having a valid election in effect under section 860D(b) of the Internal
215.5Revenue Code;
215.6(5)town and farmers' township mutual insurance companies;
215.7(6) cooperatives organized under chapter 308A or 308B that provide housing
215.8exclusively to persons age 55 and over and are classified as homesteads under section
215.9273.124, subdivision 3
; and
215.10(7) a qualified business as defined under section469.310, subdivision 11 , if for the
215.11taxable year all of its property is located in a job opportunity building zone designated
215.12under section469.314 and all of its payroll is a job opportunity building zone payroll
215.13under section469.310 .
215.14Entities not specifically exempted by this subdivision are subject to tax under this
215.15section, notwithstanding section290.05 .
215.16EFFECTIVE DATE.This section is effective the day following final enactment.
215.17 Sec. 4. Minnesota Statutes 2014, section 295.54, subdivision 2, is amended to read:
215.18 Subd. 2. Pharmacy refund. A pharmacy may claim an annual refund against
215.19the total amount of tax, if any, the pharmacy owes during that calendar year under
215.20section295.52, subdivision 4. The refund shall equal the amount paid by the pharmacy
215.21to a wholesale drug distributor subject to tax under section295.52, subdivision 3 , for
215.22legend drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax
215.23percentage specified in section295.52 , subdivision 3. If the amount of the refund exceeds
215.24the tax liability of the pharmacy under section295.52, subdivision 4, the commissioner
215.25shall provide the pharmacy with a refund equal to the excess amount. Each qualifying
215.26pharmacy must apply for the refund on the annual return asprovided under section
215.27295.55, subdivision 5
215.28following the calendar year the legend drugs were delivered outside Minnesota. The
215.29refundmust be claimed within 18 months from the date the drugs were delivered outside
215.30of Minnesota shall not be allowed if the initial claim for refund is filed more than one year
215.31after the original due date of the return. Interest on refunds paid under this subdivision
215.32will begin to accrue 60 days after the date a claim for refund is filed. For purposes of this
215.33subdivision, the date a claim is filed is the due date of the return if a return is due or the
215.34date of the actual claim for refund, whichever is later.
216.1EFFECTIVE DATE.This section is effective for qualifying legend drugs delivered
216.2outside Minnesota after December 31, 2015.
216.3 Sec. 5. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision
216.4to read:
216.5 Subd. 9a. Bulk storage or bulk storage facility. "Bulk storage" or "bulk storage
216.6facility" means a single property, or contiguous or adjacent properties used for a common
216.7purpose and owned or operated by the same person, on or in which are located one or more
216.8stationary tanks that are used singularly or in combination for the storage or containment
216.9of more than 1,100 gallons of petroleum.
216.10EFFECTIVE DATE.This section is effective the day following final enactment.
216.11 Sec. 6. Minnesota Statutes 2014, section 296A.01, subdivision 33, is amended to read:
216.12 Subd. 33. Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel,
216.13regardless of its composition or properties, used to propel a motor vehicle.
216.14EFFECTIVE DATE.This section is effective the day following final enactment.
216.15 Sec. 7. Minnesota Statutes 2014, section 296A.01, subdivision 42, is amended to read:
216.16 Subd. 42. Petroleum products. "Petroleum products" means all of the products
216.17defined in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.
216.18EFFECTIVE DATE.This section is effective the day following final enactment.
216.19 Sec. 8. Minnesota Statutes 2014, section 296A.07, subdivision 1, is amended to read:
216.20 Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline
216.21blended with ethanol, and agricultural alcohol gasoline used in producing and generating
216.22power for propelling motor vehicles used on the public highways of this state. The tax
216.23is imposed on the first licensed distributor who received the product in Minnesota. For
216.24purposes of this section, gasoline is defined in section296A.01, subdivisions 8b, 10, 18,
216.2520, 23, 24, 25, 32, and 34 . The tax is payable at the time and in the form and manner
216.26prescribed by the commissioner. The tax is payable at the rates specified in subdivision 3,
216.27subject to the exceptions and reductions specified in section296A.17 .
216.28EFFECTIVE DATE.This section is effective the day following final enactment.
216.29 Sec. 9. Minnesota Statutes 2014, section 297A.61, subdivision 10, is amended to read:
217.1 Subd. 10. Tangible personal property. (a) "Tangible personal property" means
217.2personal property that can be seen, weighed, measured, felt, or touched, or that is in any
217.3other manner perceptible to the senses. "Tangible personal property" includes, but is not
217.4limited to, electricity, water, gas, steam, and prewritten computer software.
217.5 (b) Tangible personal property does not include:
217.6(1) large ponderous machinery and equipment used in a business or production
217.7activity which at common law would be considered to be real property;
217.8(2) (1) property which is subject to an ad valorem property tax;
217.9(3) (2) property described in section
272.02, subdivision 9 , clauses (a) to (d);
217.10(4) (3) property described in section
272.03, subdivision 2 , clauses (3) and (5); and
217.11(5) (4) specified digital products, or other digital products, transferred electronically.
217.12EFFECTIVE DATE.This section is effective the day following final enactment.
217.13 Sec. 10. Minnesota Statutes 2014, section 297A.82, subdivision 4, is amended to read:
217.14 Subd. 4. Exemptions. (a) The following transactions are exempt from the tax
217.15imposed in this chapter to the extent provided.
217.16(b) The purchase or use of aircraft previously registered in Minnesota by a
217.17corporation or partnership is exempt if the transfer constitutes a transfer within the
217.18meaning of section 351 or 721 of the Internal Revenue Code.
217.19(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
217.20of an aircraft for which a commercial use permit has been issued pursuant to section
217.21360.654
is exempt, if the aircraft is resold while the permit is in effect.
217.22(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
217.23airline companies, as defined in section270.071, subdivision 4 , is exempt. For purposes
217.24of this subdivision, "air flight equipment" includes airplanes and parts necessary for the
217.25repair and maintenance of such air flight equipment, and flight simulators, but does not
217.26includeairplanes aircraft with a gross maximum takeoff weight of less than 30,000 pounds
217.27that are used on intermittent or irregularly timed flights.
217.28(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
217.29in section360.511 and approved by the Federal Aviation Administration, and which the
217.30seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
217.31shipped or transported outside Minnesota by the purchaser are exempt, but only if the
217.32purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
217.33returned to a point within Minnesota, except in the course of interstate commerce or
217.34isolated and occasional use, and will be registered in another state or country upon its
217.35removal from Minnesota. This exemption applies even if the purchaser takes possession of
218.1the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
218.2for a period not to exceed ten days prior to removing the aircraft from this state.
218.3(f) The sale or purchase of the following items that relate to aircraft operated under
218.4Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
218.5equipment and parts necessary for repair and maintenance of aircraft; and equipment
218.6and parts to upgrade and improve aircraft.
218.7EFFECTIVE DATE.This section is effective for sales and purchases made after
218.8December 31, 2016.
218.9 Sec. 11. Minnesota Statutes 2014, section 297A.82, subdivision 4a, is amended to read:
218.10 Subd. 4a. Deposit in state airports fund. Tax revenue, including interest and
218.11penalties, collected from the sale or purchase of an aircraft taxable under this chapter must
218.12be deposited in the state airports fund established in section360.017 . For purposes of this
218.13subdivision, "revenue" does not include the revenue, including interest and penalties,
218.14generated by the sales tax imposed under section 297A.62, subdivision 1a, which must be
218.15deposited as provided under article XI, section 15, of the Minnesota Constitution.
218.16EFFECTIVE DATE.This section is effective the day following final enactment.
218.17 Sec. 12. Minnesota Statutes 2014, section 297E.02, subdivision 7, is amended to read:
218.18 Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal
218.19sanctions imposed by this chapter, a person, organization, or business entity possessing or
218.20selling a pull-tab, electronic pull-tab game, or tipboard upon which the tax imposed by
218.21this chapter has not been paid is liable for a tax of six percent of the ideal gross of each
218.22pull-tab, electronic pull-tab game, or tipboard. The tax on a partial deal must be assessed
218.23as if it were a full deal.
218.24(b) In addition to penalties and criminal sanctions imposed by this chapter, a person
218.25(1) not licensed by the board who conducts bingo, linked bingo, electronic linked bingo,
218.26raffles, or paddlewheel games, or (2) who conducts gambling prohibited under sections
218.27609.75 to 609.763, other than activities subject to tax under section 297E.03, is liable for a
218.28tax of six percent of the gross receipts from that activity.
218.29(c) The taxmust may be assessed by the commissioner. An assessment must be
218.30considered a jeopardy assessment or jeopardy collection as provided in section270C.36 .
218.31The commissioner shall assess the tax based on personal knowledge or information
218.32available to the commissioner. The commissioner shall mail to the taxpayer at the
218.33taxpayer's last known address, or serve in person, a written notice of the amount of tax,
219.1demand its immediate payment, and, if payment is not immediately made, collect the tax
219.2by any method described in chapter 270C, except that the commissioner need not await the
219.3expiration of the times specified in chapter 270C. The tax assessed by the commissioner
219.4is presumed to be valid and correctly determined and assessed. The burden is upon the
219.5taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision
219.6does not apply to gambling that is exempt from taxation under subdivision 2.
219.7(d) A person, organization, or business entity conducting gambling activity under
219.8this subdivision must file monthly tax returns with the commissioner, in the form required
219.9by the commissioner. The returns must be filed on or before the 20th day of the month
219.10following the month in which the gambling activity occurred. The tax imposed by this
219.11section is due and payable at the time when the returns are required to be filed.
219.12(e) Notwithstanding any law to the contrary, neither the commissioner nor a public
219.13employee may reveal facts contained in a tax return filed with the commissioner of
219.14revenue as required by this subdivision, nor can any information contained in the report or
219.15return be used against the tax obligor in any criminal proceeding, unless independently
219.16obtained, except in connection with a proceeding involving taxes due under this section,
219.17or as provided in section 270C.055, subdivision 1. However, this paragraph does not
219.18prohibit the commissioner from publishing statistics that do not disclose the identity of
219.19tax obligors or the contents of particular returns or reports. Any person violating this
219.20paragraph is guilty of a gross misdemeanor.
219.21EFFECTIVE DATE.This section is effective for games played or purchased after
219.22June 30, 2016.
219.23 Sec. 13. Minnesota Statutes 2014, section 297H.06, subdivision 2, is amended to read:
219.24 Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed
219.25municipal solid waste or upon the volume of nonmixed municipal solid waste for waste
219.26management services to manage the following materials:
219.27(1) mixed municipal solid waste and nonmixed municipal solid waste generated
219.28outside of Minnesota;
219.29(2) recyclable materials that are separated for recycling by the generator, collected
219.30separately from other waste, and recycled, to the extent the price of the service for
219.31handling recyclable material is separately itemized on a bill to the generator;
219.32(3) recyclable nonmixed municipal solid waste that is separated for recycling by
219.33the generator, collected separately from other waste, delivered to a waste facility for the
219.34purpose of recycling, and recycled;
220.1(4) industrial waste, when it is transported to a facility owned and operated by
220.2the same person that generated it;
220.3(5) mixed municipal solid waste from a recycling facility that separates or processes
220.4recyclable materials and reduces the volume of the waste by at least 85 percent, provided
220.5that the exempted waste is managed separately from other waste;
220.6(6) recyclable materials that are separated from mixed municipal solid waste by the
220.7generator, collected and delivered to a waste facility that recycles at least 85 percent of its
220.8waste, and are collected with mixed municipal solid waste that is segregated in leakproof
220.9bags, provided that the mixed municipal solid waste does not exceed five percent of the
220.10total weight of the materials delivered to the facility and is ultimately delivered to a waste
220.11facility identified as a preferred waste management facility in county solid waste plans
220.12under section115A.46 ;
220.13(7) source-separated compostablewaste materials, if the waste is materials are
220.14delivered to a facility exempted as described in this clause. To initially qualify for an
220.15exemption, a facility must apply for an exemption in its application for a new or amended
220.16solid waste permit to the Pollution Control Agency. The first time a facility applies to the
220.17agency it must certify in its application that it will comply with the criteria in items (i) to (v)
220.18and the commissioner of the agency shall so certify to the commissioner of revenue who
220.19must grant the exemption. The facility must annually apply to the agency for certification
220.20to renew its exemption for the following year. The application must be filed according to
220.21the procedures of, and contain the information required by, the agency. The commissioner
220.22of revenue shall grant the exemption if the commissioner of the Pollution Control Agency
220.23finds and certifies to the commissioner of revenue that based on an evaluation of the
220.24composition of incoming waste and residuals and the quality and use of the product:
220.25(i) generators separate materials at the source;
220.26(ii) the separation is performed in a manner appropriate to the technology specific
220.27to the facility that:
220.28(A) maximizes the quality of the product;
220.29(B) minimizes the toxicity and quantity ofresiduals rejects; and
220.30(C) provides an opportunity for significant improvement in the environmental
220.31efficiency of the operation;
220.32(iii) the operator of the facility educates generators, in coordination with each county
220.33using the facility, about separating the waste to maximize the quality of the waste stream
220.34for technology specific to the facility;
220.35(iv) processresiduals rejects do not exceed 15 percent of the weight of the total
220.36material delivered to the facility; and
221.1(v) the final product is accepted for use;
221.2(8) waste and waste by-products for which the tax has been paid; and
221.3(9) daily cover for landfills that has been approved in writing by the Minnesota
221.4Pollution Control Agency.
221.5EFFECTIVE DATE.This section is effective the day following final enactment.
221.6 Sec. 14. Minnesota Statutes 2014, section 297I.05, subdivision 2, is amended to read:
221.7 Subd. 2.Town and farmers' Township mutual insurance. A tax is imposed on
221.8town and farmers' township mutual insurance companies. The rate of tax is equal to one
221.9percent of gross premiums less return premiums on all direct business received by the
221.10insurer or agents of the insurer in Minnesota, in cash or otherwise, during the year.
221.11EFFECTIVE DATE.This section is effective the day following final enactment.
221.12 Sec. 15. Minnesota Statutes 2014, section 297I.10, subdivision 1, is amended to read:
221.13 Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct
221.14a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
221.15premiums, less return premiums, on all direct business received by any licensed foreign or
221.16domestic fire insurance company on property in a city of the first class, or by its agents for
221.17it, in cash or otherwise.
221.18(b) By July 31 and December 31 of each year, the commissionerof management
221.19and budget shall pay to each city of the first class a warrant for an amount equal to the
221.20total amount of the surcharge on the premiums collected within that city since the previous
221.21payment.
221.22(c) The treasurer of the city shall place the money received under this subdivision
221.23in a special account or fund to defray all or a portion of the employer contribution
221.24requirement of public employees police and fire plan coverage for city firefighters.
221.25EFFECTIVE DATE.This section is effective the day following final enactment.
221.26 Sec. 16. Minnesota Statutes 2014, section 297I.10, subdivision 3, is amended to read:
221.27 Subd. 3. Appropriation. The amount necessary to make the payments required
221.28under this section is appropriated to the commissionerof management and budget from
221.29the general fund.
221.30EFFECTIVE DATE.This section is effective the day following final enactment.
222.1 Sec. 17. Minnesota Statutes 2014, section 298.01, subdivision 3b, is amended to read:
222.2 Subd. 3b. Deductions. (a) For purposes of determining taxable income under
222.3subdivision 3, the deductions from gross income include only those expenses necessary
222.4to convert raw ores to marketable quality. Such expenses include costs associated with
222.5refinement but do not include expenses such as transportation, stockpiling, marketing, or
222.6marine insurance that are incurred after marketable ores are produced, unless the expenses
222.7are included in gross income. The allowable deductions from a mine or plant that mines
222.8and produces more than one mineral, metal, or energy resource must be determined
222.9separately for the purposes of computing the deduction in section290.01 , subdivision 19c,
222.10clause (8). These deductions may be combined on one occupation tax return to arrive at
222.11the deduction from gross income for all production.
222.12(b) The provisions of section290.01, subdivisions 19c, clauses (6) and (8), and 19d,
222.13clauses (6) and(9) (8), are not used to determine taxable income.
222.14EFFECTIVE DATE.This section is effective the day following final enactment.
222.15 Sec. 18. Minnesota Statutes 2014, section 298.01, subdivision 4c, is amended to read:
222.16 Subd. 4c. Special deductions; net operating loss.(a) For purposes of determining
222.17taxable income under subdivision 4, the provisions of section290.01, subdivisions 19c,
222.18clauses (6) and (8), and 19d, clauses (6) and (9) (8), are not used to determine taxable
222.19income.
222.20(b) The amount of net operating loss incurred in a taxable year beginning before
222.21January 1, 1990, that may be carried over to a taxable year beginning after December 31,
222.221989, is the amount of net operating loss carryover determined in the calculation of the
222.23hypothetical corporate franchise tax under Minnesota Statutes 1988, sections
298.40
222.24and
298.402.
222.25EFFECTIVE DATE.This section is effective the day following final enactment.
222.29 Section 1. Minnesota Statutes 2014, section 13.51, subdivision 2, is amended to read:
222.30 Subd. 2. Income property assessment data. The following data collected by
222.31political subdivisions and the state from individuals or business entities concerning
222.32income properties are classified as private or nonpublic data pursuant to section13.02,
222.33subdivisions 9 and 12:
222.34(a) detailed income and expense figures;
223.1(b) average vacancy factors;
223.2(c) verified net rentable areas or net usable areas, whichever is appropriate;
223.3(d) anticipated income and expenses;
223.4(e) projected vacancy factors; and
223.5(f) lease information.
223.6EFFECTIVE DATE.This section is effective the day following final enactment.
223.7 Sec. 2. Minnesota Statutes 2014, section 270.071, subdivision 2, is amended to read:
223.8 Subd. 2. Air commerce.(a) "Air commerce" means the transportation by aircraft
223.9of persons or property for hire in interstate, intrastate, or international transportation
223.10on regularly scheduled flights or on intermittent or irregularly timed flights by airline
223.11companies and includes transportation by any airline company making three or more
223.12flights in or out of Minnesota, or within Minnesota, during a calendar year.
223.13(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed
223.14flight, a flight arranged at the convenience of an airline and the person contracting for the
223.15transportation, or a charter flight. It includes any airline company making three or more
223.16flights in or out of Minnesota during a calendar year.
223.17(c) "Air commerce" does not include casual transportation for hire by aircraft
223.18commonly owned and used for private air flight purposes if the person furnishing the
223.19transportation does not hold out to be engaged regularly in transportation for hire.
223.20EFFECTIVE DATE.This section is effective for assessment year 2017 and
223.21thereafter.
223.22 Sec. 3. Minnesota Statutes 2014, section 270.071, subdivision 7, is amended to read:
223.23 Subd. 7. Flight property. "Flight property" means all aircraft and flight equipment
223.24used in connection therewith, including spare flight equipment. Flight property also
223.25includes computers and computer software used in operating, controlling, or regulating
223.26aircraft and flight equipment. Flight property does not include aircraft with a maximum
223.27takeoff weight of less than 30,000 pounds.
223.28EFFECTIVE DATE.This section is effective for assessment year 2017 and
223.29thereafter.
223.30 Sec. 4. Minnesota Statutes 2014, section 270.071, subdivision 8, is amended to read:
223.31 Subd. 8. Person. "Person" meansany an individual, corporation, firm,
223.32copartnership, company, or association, and includes any guardian, trustee, executor,
224.1administrator, receiver, conservator, or any person acting in any fiduciary capacity therefor
224.2trust, estate, fiduciary, partnership, company, corporation, limited liability company,
224.3association, governmental unit or agency, public or private organization of any kind,
224.4or other legal entity.
224.5EFFECTIVE DATE.This section is effective for assessment year 2017 and
224.6thereafter.
224.7 Sec. 5. Minnesota Statutes 2014, section 270.071, is amended by adding a subdivision
224.8to read:
224.9 Subd. 10. Intermittent or irregularly timed flights. "Intermittently or irregularly
224.10timed flights" means any flight in which the departure time, departure location, and arrival
224.11location are specifically negotiated with the customer or the customer's representative,
224.12including but not limited to charter flights.
224.13EFFECTIVE DATE.This section is effective for assessment year 2017 and
224.14thereafter.
224.15 Sec. 6. Minnesota Statutes 2014, section 270.072, subdivision 2, is amended to read:
224.16 Subd. 2. Assessment of flight property. Flight property that is owned by, or is
224.17leased, loaned, or otherwise made available to an airline company operating in Minnesota
224.18shall be assessed and appraised annually by the commissioner with reference to its value
224.19on January 2 of the assessment year in the manner prescribed by sections270.071 to
224.20270.079
. Aircraft with a gross weight of less than 30,000 pounds and used on intermittent
224.21or irregularly timed flights shall be excluded from the provisions of sections
270.071 to
224.22270.079.
224.23EFFECTIVE DATE.This section is effective for assessment year 2017 and
224.24thereafter.
224.25 Sec. 7. Minnesota Statutes 2014, section 270.072, subdivision 3, is amended to read:
224.26 Subd. 3. Report by airline company. (a) Each year, on or before July 1, every
224.27airline company engaged in air commerce in this state shall file with the commissioner a
224.28report under oath setting forth specifically the information prescribed by the commissioner
224.29to enable the commissioner to make the assessment required in sections270.071 to
224.30270.079
, unless the commissioner determines that the airline company or person should be
224.31excluded from is exempt from filing because its activities do not constitute air commerce
224.32as defined herein.
225.1 (b) The commissioner shall prescribe the content, format, and manner of the report
225.2pursuant to section 270C.30, except that a "law administered by the commissioner"
225.3includes the property tax laws. If a report is made by electronic means, the taxpayer's
225.4signature is defined pursuant to section 270C.304, except that a "law administered by the
225.5commissioner" includes the property tax laws.
225.6EFFECTIVE DATE.The amendment to paragraph (a) is effective for reports
225.7filed in 2017 and thereafter. The amendment adding paragraph (b) is effective the day
225.8following final enactment.
225.9 Sec. 8. Minnesota Statutes 2014, section 270.072, is amended by adding a subdivision
225.10to read:
225.11 Subd. 3a. Commissioner filed reports. If an airline company fails to file a report
225.12required by subdivision 3, the commissioner may, from information in the commissioner's
225.13possession or obtainable by the commissioner, make and file a report for the airline
225.14company, or may issue a notice of net tax capacity and tax under section 270.075,
225.15subdivision 2.
225.16EFFECTIVE DATE.This section is effective for assessment year 2017 and
225.17thereafter.
225.18 Sec. 9. Minnesota Statutes 2014, section 270.12, is amended by adding a subdivision
225.19to read:
225.20 Subd. 6. Reassessment orders. If the State Board of Equalization determines that a
225.21considerable amount of property has been undervalued or overvalued compared to like
225.22property such that the assessment is grossly unfair or inequitable, the State Board of
225.23Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders
225.24to the county assessor to reassess all or any part of a parcel in a county.
225.25EFFECTIVE DATE.This section is effective for assessment year 2017 and
225.26thereafter.
225.27 Sec. 10. Minnesota Statutes 2014, section 270C.89, subdivision 1, is amended to read:
225.28 Subdivision 1. Initial report. Each county assessor shall file by April 1 with the
225.29commissioner a copy of the abstract that will be acted upon by the local and county
225.30boards of review. The abstract must list the real and personal property in the county
225.31itemized by assessment districts. The assessor of each county in the state shall file with
225.32the commissioner, within ten working days following final action of the local board of
226.1review or equalization and within five days following final action of the county board of
226.2equalization, any changes made by the local or county board. The information must be
226.3filed in the manner prescribed by the commissioner.It must be accompanied by a printed
226.4or typewritten copy of the proceedings of the appropriate board.
226.5EFFECTIVE DATE.This section is effective for county boards of appeal and
226.6equalization meetings held in 2017 and thereafter.
226.7 Sec. 11. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:
226.8 Subd. 9. Personal property; exceptions. Except for the taxable personal property
226.9enumerated below, all personal property and the property described in section272.03,
226.10subdivision 1 , paragraphs (c) and (d), shall be exempt.
226.11The following personal property shall be taxable:
226.12(a) personal property which is part of (1) an electric generating, transmission, or
226.13distribution systemor; (2) a pipeline system transporting or distributing water, gas, crude
226.14oil, or petroleum products; or (3) mains and pipes used in the distribution of steam or hot
226.15or chilled water for heating or cooling buildings and structures;
226.16(b) railroad docks and wharves which are part of the operating property of a railroad
226.17company as defined in section270.80 ;
226.18(c) personal property defined in section272.03, subdivision 2 , clause (3);
226.19(d) leasehold or other personal property interests which are taxed pursuant to section
226.20272.01, subdivision 2
;
273.124, subdivision 7 ; or
273.19, subdivision 1 ; or any other law
226.21providing the property is taxable as if the lessee or user were the fee owner;
226.22(e) manufactured homes and sectional structures, including storage sheds, decks,
226.23and similar removable improvements constructed on the site of a manufactured home,
226.24sectional structure, park trailer or travel trailer as provided in section273.125, subdivision
226.258 , paragraph (f); and
226.26(f) flight property as defined in section270.071 .
226.27EFFECTIVE DATE.This section is effective the day following final enactment.
226.28 Sec. 12. Minnesota Statutes 2014, section 272.029, subdivision 2, is amended to read:
226.29 Subd. 2. Definitions. (a) For the purposes of this section, the term:
226.30(1) "wind energy conversion system" has the meaning given in section 216C.06,
226.31subdivision 19, and also includes a substation that is used and owned by one or more
226.32wind energy conversion facilities;
227.1(2) "large scale wind energy conversion system" means a wind energy conversion
227.2system of more than 12 megawatts, as measured by the nameplate capacity of the system
227.3or as combined with other systems as provided in paragraph (b);
227.4(3) "medium scale wind energy conversion system" means a wind energy conversion
227.5system of over two and not more than 12 megawatts, as measured by the nameplate
227.6capacity of the system or as combined with other systems as provided in paragraph (b); and
227.7(4) "small scale wind energy conversion system" means a wind energy conversion
227.8system of two megawatts and under, as measured by the nameplate capacity of the system
227.9or as combined with other systems as provided in paragraph (b).
227.10(b) For systems installed and contracted for after January 1, 2002, the total size of a
227.11wind energy conversion system under this subdivision shall be determined according to
227.12this paragraph. Unless the systems are interconnected with different distribution systems,
227.13the nameplate capacity of one wind energy conversion system shall be combined with the
227.14nameplate capacity of any other wind energy conversion system that is:
227.15(1) located within five miles of the wind energy conversion system;
227.16(2) constructed within the samecalendar year 12-month period as the wind energy
227.17conversion system; and
227.18(3) under common ownership.
227.19In the case of a dispute, the commissioner of commerce shall determine the total size
227.20of the system, and shall draw all reasonable inferences in favor of combining the systems.
227.21(c) In making a determination under paragraph (b), the commissioner of commerce
227.22may determine that two wind energy conversion systems are under common ownership
227.23when the underlying ownership structure contains similar persons or entities, even if the
227.24ownership shares differ between the two systems. Wind energy conversion systems are
227.25not under common ownership solely because the same person or entity provided equity
227.26financing for the systems.
227.27EFFECTIVE DATE.This section is effective for reports filed in 2017 and thereafter.
227.28 Sec. 13. Minnesota Statutes 2014, section 272.029, is amended by adding a subdivision
227.29to read:
227.30 Subd. 8. Extension. The commissioner may, for good cause, extend the time for
227.31filing the report required by subdivision 4. The extension must not exceed 15 days.
227.32EFFECTIVE DATE.This section is effective for reports filed in 2017 and thereafter.
227.33 Sec. 14. Minnesota Statutes 2014, section 273.032, is amended to read:
228.1273.032 MARKET VALUE DEFINITION.
228.2 (a) Unless otherwise provided, for the purpose of determining any property tax
228.3levy limitation based on market value or any limit on net debt, the issuance of bonds,
228.4certificates of indebtedness, or capital notes based on market value, any qualification to
228.5receive state aid based on market value, or any state aid amount based on market value,
228.6the terms "market value," "estimated market value," and "market valuation," whether
228.7equalized or unequalized, mean the estimated market value of taxable property within the
228.8local unit of government before any of the following or similar adjustments for:
228.9 (1) the market value exclusions under:
228.10 (i) section273.11, subdivisions 14a and 14c (vacant platted land);
228.11 (ii) section273.11, subdivision 16 (certain improvements to homestead property);
228.12 (iii) section273.11, subdivisions 19 and 20 (certain improvements to business
228.13properties);
228.14 (iv) section273.11, subdivision 21 (homestead property damaged by mold);
228.15(v) section
273.11, subdivision 22 (qualifying lead hazardous reduction projects);
228.16(vi) (v) section
273.13, subdivision 34 (homestead of a disabled veteran or family
228.17caregiver); or
228.18(vii) (vi) section
273.13, subdivision 35 (homestead market value exclusion); or
228.19 (2) the deferment of value under:
228.20 (i) the Minnesota Agricultural Property Tax Law, section273.111 ;
228.21 (ii) the Aggregate Resource Preservation Law, section273.1115 ;
228.22 (iii) the Minnesota Open Space Property Tax Law, section273.112 ;
228.23 (iv) the rural preserves property tax program, section273.114 ; or
228.24 (v) the Metropolitan Agricultural Preserves Act, section473H.10 ; or
228.25 (3) the adjustments to tax capacity for:
228.26 (i) tax increment financing under sections469.174 to
469.1794 ;
228.27 (ii) fiscal disparities under chapter 276A or 473F; or
228.28 (iii) powerline credit under section273.425 .
228.29 (b) Estimated market value under paragraph (a) also includes the market value
228.30of tax-exempt property if the applicable law specifically provides that the limitation,
228.31qualification, or aid calculation includes tax-exempt property.
228.32 (c) Unless otherwise provided, "market value," "estimated market value," and
228.33"market valuation" for purposes of property tax levy limitations and calculation of state
228.34aid, refer to the estimated market value for the previous assessment year and for purposes
228.35of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes
228.36refer to the estimated market value as last finally equalized.
229.1 (d) For purposes of a provision of a home rule charter or of any special law that is not
229.2codified in the statutes and that imposes a levy limitation based on market value or any limit
229.3on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
229.4value, the terms "market value," "taxable market value," and "market valuation," whether
229.5equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
229.6EFFECTIVE DATE.This section is effective the day following final enactment.
229.7 Sec. 15. Minnesota Statutes 2014, section 273.061, subdivision 7, is amended to read:
229.8 Subd. 7. Division of duties between local and county assessor. The duty of the
229.9duly appointed local assessor shall be to view and appraise the value of all property as
229.10provided by law, but all the book work shall be done by the county assessor, or the
229.11assessor's assistants, and the value of all property subject to assessment and taxation shall
229.12be determined by the county assessor, except as otherwise hereinafter provided. If directed
229.13by the county assessor, the local assessorshall must perform the duties enumerated in
229.14subdivision 8, clause (16), and must enter construction and valuation data into the records
229.15in the manner prescribed by the county assessor.
229.16EFFECTIVE DATE.This section is effective for assessment year 2017 and
229.17thereafter.
229.18 Sec. 16. Minnesota Statutes 2014, section 273.08, is amended to read:
229.19273.08 ASSESSOR'S DUTIES.
229.20The assessor shall actually view, and determine the market value of each tract or lot
229.21of real property listed for taxation, including the value of all improvements and structures
229.22thereon, at maximum intervals of five years and shall enter the value opposite each
229.23description. When directed by the county assessor, local assessors must enter construction
229.24and valuation data into the records in the manner prescribed by the county assessor.
229.25EFFECTIVE DATE.This section is effective for assessment year 2017 and
229.26thereafter.
229.27 Sec. 17. Minnesota Statutes 2014, section 273.121, is amended by adding a subdivision
229.28to read:
229.29 Subd. 3. Compliance. A county assessor, or a city assessor having the powers
229.30of a county assessor, who does not comply with the timely notice requirement under
229.31subdivision 1 must:
230.1(1) mail an additional valuation notice to each person who was not provided timely
230.2notice; and
230.3(2) convene a supplemental local board of appeal and equalization or local review
230.4session no sooner than ten days after sending the additional notices required by clause (1).
230.5EFFECTIVE DATE.This section is effective for valuation notices sent in 2017
230.6and thereafter.
230.7 Sec. 18. Minnesota Statutes 2014, section 273.13, subdivision 22, is amended to read:
230.8 Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b)
230.9and (c), real estate which is residential and used for homestead purposes is class 1a. In the
230.10case of a duplex or triplex in which one of the units is used for homestead purposes, the
230.11entire property is deemed to be used for homestead purposes. The market value of class 1a
230.12property must be determined based upon the value of the house, garage, and land.
230.13 The first $500,000 of market value of class 1a property has a net classification rate
230.14of one percent of its market value; and the market value of class 1a property that exceeds
230.15$500,000 has a classification rate of 1.25 percent of its market value.
230.16 (b) Class 1b property includes homestead real estate or homestead manufactured
230.17homes used for the purposes of a homestead by:
230.18 (1) any person who is blind as defined in section256D.35 , or the blind person and
230.19the blind person's spouse;
230.20 (2) any person who is permanently and totally disabled or by the disabled person and
230.21the disabled person's spouse; or
230.22 (3) the surviving spouse of a permanently and totally disabled veteran homesteading
230.23a property classified under this paragraph for taxes payable in 2008.
230.24 Property is classified and assessed under clause (2) only if the government agency or
230.25income-providing source certifies, upon the request of the homestead occupant, that the
230.26homestead occupant satisfies the disability requirements of this paragraph, and that the
230.27property is not eligible for the valuation exclusion under subdivision 34.
230.28 Property is classified and assessed under paragraph (b) only if the commissioner
230.29of revenue or the county assessor certifies that the homestead occupant satisfies the
230.30requirements of this paragraph.
230.31 Permanently and totally disabled for the purpose of this subdivision means a
230.32condition which is permanent in nature and totally incapacitates the person from working
230.33at an occupation which brings the person an income. The first $50,000 market value of
230.34class 1b property has a net classification rate of .45 percent of its market value. The
231.1remaining market value of class 1b propertyhas a classification rate using the rates for is
231.2classified as class 1a or class 2a property, whichever is appropriate, of similar market value.
231.3 (c) Class 1c property is commercial use real and personal property that abuts public
231.4water as defined in section103G.005, subdivision 15 , and is devoted to temporary and
231.5seasonal residential occupancy for recreational purposes but not devoted to commercial
231.6purposes for more than 250 days in the year preceding the year of assessment, and that
231.7includes a portion used as a homestead by the owner, which includes a dwelling occupied
231.8as a homestead by a shareholder of a corporation that owns the resort, a partner in a
231.9partnership that owns the resort, or a member of a limited liability company that owns the
231.10resort even if the title to the homestead is held by the corporation, partnership, or limited
231.11liability company. For purposes of this paragraph, property is devoted to a commercial
231.12purpose on a specific day if any portion of the property, excluding the portion used
231.13exclusively as a homestead, is used for residential occupancy and a fee is charged for
231.14residential occupancy. Class 1c property must contain three or more rental units. A "rental
231.15unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping
231.16site equipped with water and electrical hookups for recreational vehicles. Class 1c property
231.17must provide recreational activities such as the rental of ice fishing houses, boats and
231.18motors, snowmobiles, downhill or cross-country ski equipment; provide marina services,
231.19launch services, or guide services; or sell bait and fishing tackle. Any unit in which the
231.20right to use the property is transferred to an individual or entity by deeded interest, or the
231.21sale of shares or stock, no longer qualifies for class 1c even though it may remain available
231.22for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c
231.23is also class 1c, regardless of the term of the rental agreement, as long as the use of the
231.24camping pad does not exceed 250 days. If the same owner owns two separate parcels that
231.25are located in the same township, and one of those properties is classified as a class 1c
231.26property and the other would be eligible to be classified as a class 1c property if it was
231.27used as the homestead of the owner, both properties will be assessed as a single class 1c
231.28property; for purposes of this sentence, properties are deemed to be owned by the same
231.29owner if each of them is owned by a limited liability company, and both limited liability
231.30companies have the same membership. The portion of the property used as a homestead
231.31is class 1a property under paragraph (a). The remainder of the property is classified as
231.32follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value
231.33is tier II, and any remaining market value is tier III. The classification rates for class 1c
231.34are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and
231.35personal property devoted to temporary and seasonal residential occupancy for recreation
231.36purposes in which all or a portion of the property was devoted to commercial purposes for
232.1not more than 250 days in the year preceding the year of assessment desiring classification
232.2as class 1c, must submit a declaration to the assessor designating the cabins or units
232.3occupied for 250 days or less in the year preceding the year of assessment by January 15 of
232.4the assessment year. Those cabins or units and a proportionate share of the land on which
232.5they are located must be designated as class 1c as otherwise provided. The remainder of
232.6the cabins or units and a proportionate share of the land on which they are located must be
232.7designated as class 3a commercial. The owner of property desiring designation as class
232.81c property must provide guest registers or other records demonstrating that the units for
232.9which class 1c designation is sought were not occupied for more than 250 days in the
232.10year preceding the assessment if so requested. The portion of a property operated as a
232.11(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
232.12nonresidential facility operated on a commercial basis not directly related to temporary
232.13and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
232.14 (d) Class 1d property includes structures that meet all of the following criteria:
232.15 (1) the structure is located on property that is classified as agricultural property under
232.16section273.13, subdivision 23 ;
232.17 (2) the structure is occupied exclusively by seasonal farm workers during the time
232.18when they work on that farm, and the occupants are not charged rent for the privilege of
232.19occupying the property, provided that use of the structure for storage of farm equipment
232.20and produce does not disqualify the property from classification under this paragraph;
232.21 (3) the structure meets all applicable health and safety requirements for the
232.22appropriate season; and
232.23 (4) the structure is not salable as residential property because it does not comply
232.24with local ordinances relating to location in relation to streets or roads.
232.25 The market value of class 1d property has the same classification rates as class
232.261a property under paragraph (a).
232.27EFFECTIVE DATE.This section is effective the day following final enactment.
232.28 Sec. 19. Minnesota Statutes 2014, section 273.33, subdivision 1, is amended to read:
232.29 Subdivision 1. Listing and assessment in county. The personal property of express,
232.30stage and transportation companies, and of pipeline companies engaged in the business
232.31of transportingnatural gas, gasoline, crude oil, or other petroleum products, except as
232.32otherwise provided by law, shall be listed and assessed in the county, town or district
232.33where the same is usually kept.
232.34EFFECTIVE DATE.This section is effective the day following final enactment.
233.1 Sec. 20. Minnesota Statutes 2014, section 273.33, subdivision 2, is amended to read:
233.2 Subd. 2. Listing and assessment by commissioner. The personal property,
233.3consisting of the pipeline system of mains, pipes, and equipment attached thereto, of
233.4pipeline companies and others engaged in the operations or business of transporting
233.5natural gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed
233.6with and assessed by the commissioner of revenue and the values provided to the
233.7city or county assessor by order. This subdivision shall not apply to the assessment of
233.8the products transported through the pipelines nor to the lines of local commercial gas
233.9companies engaged primarily in the business of distributinggas products to consumers at
233.10retail nor to pipelines used by the owner thereof to supplynatural gas or other petroleum
233.11products exclusively for such owner's own consumption and not for resale to others. If
233.12more than 85 percent of thenatural gas or other petroleum products actually transported
233.13over the pipeline is used for the owner's own consumption and not for resale to others,
233.14then this subdivision shall not apply; provided, however, that in that event, the pipeline
233.15shall be assessed in proportion to the percentage ofgas products actually transported over
233.16such pipeline that is not used for the owner's own consumption. On or before August 1,
233.17the commissioner shall certify to the auditor of each county, the amount of such personal
233.18property assessment against each company in each district in which such property is
233.19located. If the commissioner determines that the amount of personal property assessment
233.20certified on or before August 1 is in error, the commissioner may issue a corrected
233.21certification on or before October 1. The commissioner may correct errors that are merely
233.22clerical in nature until December 31.
233.23EFFECTIVE DATE.This section is effective the day following final enactment.
233.24 Sec. 21. Minnesota Statutes 2014, section 273.372, subdivision 1, is amended to read:
233.25 Subdivision 1. Scope. (a) As provided in this section, an appeal by a utility or
233.26railroad company concerning property for which the commissioner of revenue has provided
233.27the city or county assessor with valuations by order, or for which the commissioner
233.28has recommended values to the city or county assessor, must be brought against the
233.29commissioner, and not against the county or taxing district where the property is located.
233.30Service must be made on the commissioner only, and not on the county or taxing district.
233.31(b) This section governs administrative appeals and appeals to court of a claim that
233.32utility or railroad operating property has been partially, unfairly, or unequally assessed,
233.33or assessed at a valuation greater than its real or actual value, misclassified, or that the
233.34property is exempt. This section applies only to property described in sections270.81,
233.35subdivision 1 ,
273.33 ,
273.35 ,
273.36 , and
273.37 , and only with regard to taxable net tax
234.1capacities that have been provided to the city or county by the commissioner and which
234.2have not been changed by city or county. If the taxable net tax capacity being appealed is
234.3not the taxable net tax capacity established by the commissioner, or if the appeal claims
234.4that the tax rate applied against the parcel is incorrect, or that the tax has been paid, this
234.5section does not apply.
234.6EFFECTIVE DATE.This section is effective for appeals of valuations made in
234.7assessment year 2017 and thereafter.
234.8 Sec. 22. Minnesota Statutes 2014, section 273.372, subdivision 2, is amended to read:
234.9 Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required
234.10to be brought against the commissioner under this section, the petition initiating the appeal
234.11must be served on the commissioner and must be filed with the Tax Court in Ramsey
234.12County, as provided in paragraph (b) or (c).
234.13(b) If the appeal to court is from an order of the commissioner, it must be brought
234.14under chapter 271 and filed within the time period prescribed in section 271.06,
234.15subdivision 2, except that when the provisions of this section conflict with chapter
234.16271 or 278, this section prevails. In addition, the petition must include all the parcels
234.17encompassed by that order which the petitioner claims have been partially, unfairly,
234.18or unequally assessed, assessed at a valuation greater than their real or actual value,
234.19misclassified, or are exempt. For this purpose, an order of the commissioner is either (1) a
234.20certification or notice of value by the commissioner for property described in subdivision
234.211, or (2) the final determination by the commissioner of either an administrative appeal
234.22conference or informal administrative appeal described in subdivision 4.
234.23(c) If the appeal is from the tax that results from implementation of the
234.24commissioner's order, certification, or recommendation, it must be brought under
234.25chapter 278, and the provisions in that chapter apply, except that service shall be on the
234.26commissioner only and not on the local officials specified in section278.01, subdivision 1 ,
234.27and if any other provision of this section conflicts with chapter 278, this section prevails.
234.28In addition, the petition must include either all the utility parcels or all the railroad parcels
234.29in the state in which the petitioner claims an interest and which the petitioner claims have
234.30been partially, unfairly, or unequally assessed, assessed at a valuation greater than their
234.31real or actual value, misclassified, or are exempt.
234.32EFFECTIVE DATE.This section is effective for assessment year 2017 and
234.33thereafter.
235.1 Sec. 23. Minnesota Statutes 2014, section 273.372, subdivision 4, is amended to read:
235.2 Subd. 4. Administrative appeals. (a) Companies that submit the reports under
235.3section270.82 or
273.371 by the date specified in that section, or by the date specified
235.4by the commissioner in an extension, may appeal administratively to the commissioner
235.5prior to bringing an action in court.
235.6 (b) Companiesthat must submit reports under section
270.82 must submit file a
235.7written requestto for an appeal with the commissioner for a conference within ten 30
235.8days after the notice date of the commissioner's valuation certification or other notice
235.9to the company, or by June 15, whichever is earlier. For purposes of this section, the
235.10term "notice date" means the date of the valuation certification, commissioner's order,
235.11recommendation, or other notice.
235.12 (c)Companies that submit reports under section
273.371 must submit a written
235.13request to the commissioner for a conference within ten days after the date of the
235.14commissioner's valuation certification or notice to the company, or by July 1, whichever
235.15is earlier. The appeal need not be in any particular form but must contain the following
235.16information:
235.17 (1) name and address of the company;
235.18 (2) the date;
235.19 (3) its Minnesota identification number;
235.20 (4) the assessment year or period involved;
235.21 (5) the findings in the valuation that the company disputes;
235.22 (6) a summary statement specifying its reasons for disputing each item; and
235.23 (7) the signature of the company's duly authorized agent or representative.
235.24 (d) When requested in writing and within the time allowed for filing an
235.25administrative appeal, the commissioner may extend the time for filing an appeal for a
235.26period of not more than 15 days from the expiration of the time for filing the appeal.
235.27(d) (e) The commissioner shall conduct the conference either in person or by
235.28telephone upon the commissioner's entire files and records and such further information as
235.29may be offered. The conference must be held no later than 20 days after the date of the
235.30commissioner's valuation certification or notice to the company, or by the date specified
235.31by the commissioner in an extension request for an appeal. Within 60 30 days after the
235.32conference the commissioner shall make a final determination of the matter and shall
235.33notify the company promptly of the determination. The conference is not a contested
235.34case hearing subject to chapter 14.
235.35(e) In addition to the opportunity for a conference under paragraph (a), the
235.36commissioner shall also provide the railroad and utility companies the opportunity to
236.1discuss any questions or concerns relating to the values established by the commissioner
236.2through certification or notice in a less formal manner. This does not change or modify
236.3the deadline for requesting a conference under paragraph (a), the deadline in section
236.4271.06 for appealing an order of the commissioner, or the deadline in section
278.01 for
236.5appealing property taxes in court.
236.6EFFECTIVE DATE.This section is effective for assessment year 2017 and
236.7thereafter.
236.8 Sec. 24. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision
236.9to read:
236.10 Subd. 5. Agreement determining valuation. When it appears to be in the best
236.11interest of the state, the commissioner may settle any matter under consideration regarding
236.12an appeal filed under this section. The agreement must be in writing and signed by
236.13the commissioner and the company or the company's authorized representative. The
236.14agreement is final and conclusive, and except upon a showing of fraud, malfeasance,
236.15or misrepresentation of a material fact, the case may not be reopened as to the matters
236.16agreed upon.
236.17EFFECTIVE DATE.This section is effective for assessment year 2017 and
236.18thereafter.
236.19 Sec. 25. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision
236.20to read:
236.21 Subd. 6. Dismissal of administrative appeal. If a taxpayer files an administrative
236.22appeal from an order of the commissioner and also files an appeal to the tax court for
236.23that same order of the commissioner, the administrative appeal is dismissed and the
236.24commissioner is no longer required to make the determination of appeal under subdivision
236.254.
236.26EFFECTIVE DATE.This section is effective beginning with assessment year 2016.
236.27 Sec. 26. [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.
236.28After making the apportionment provided in Minnesota Rules, part 8100.0600, the
236.29commissioner must equalize the values of the operating structures to the level accepted by
236.30the State Board of Equalization if the appropriate sales ratio for each county, as conducted
236.31by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is
236.32outside the range accepted by the State Board of Equalization. The commissioner must
237.1not equalize the value of the operating structures if the sales ratio determined pursuant to
237.2this subdivision is within the range accepted by the State Board of Equalization.
237.3EFFECTIVE DATE.This section is effective beginning with assessment year 2016.
237.4 Sec. 27. Minnesota Statutes 2014, section 274.01, subdivision 1, is amended to read:
237.5 Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town
237.6board of a town, or the council or other governing body of a city, is the local board
237.7of appeal and equalization except (1) in cities whose charters provide for a board of
237.8equalization or (2) in any city or town that has transferred its local board of review power
237.9and duties to the county board as provided in subdivision 3. The county assessor shall
237.10fix a day and time whenthe board or the local board of equalization shall meet in the
237.11assessment districts of the county. Notwithstanding any law or city charter to the contrary,
237.12a city board of equalization shall be referred to as a local board of appeal and equalization.
237.13On or before February 15 of each year the assessor shall give written notice of the time
237.14to the city or town clerk. Notwithstanding the provisions of any charter to the contrary,
237.15the meetings must be held between April 1 and May 31 each year. The clerk shall give
237.16published and posted notice of the meeting at least ten days before the date of the meeting.
237.17 The board shall meet either at a central location within the county or at the office of
237.18the clerk to review the assessment and classification of property in the town or city. No
237.19changes in valuation or classification which are intended to correct errors in judgment by
237.20the county assessor may be made by the county assessor after the board has adjourned
237.21in those cities or towns that hold a local board of review; however, corrections of errors
237.22that are merely clerical in nature or changes that extend homestead treatment to property
237.23are permitted after adjournment until the tax extension date for that assessment year. The
237.24changes must be fully documented and maintained in the assessor's office and must be
237.25available for review by any person. A copy of the changes made during this period in
237.26those cities or towns that hold a local board of review must be sent to the county board no
237.27later than December 31 of the assessment year.
237.28 (b) The board shall determine whether the taxable property in the town or city has
237.29been properly placed on the list and properly valued by the assessor. If real or personal
237.30property has been omitted, the board shall place it on the list with its market value, and
237.31correct the assessment so that each tract or lot of real property, and each article, parcel,
237.32or class of personal property, is entered on the assessment list at its market value. No
237.33assessment of the property of any person may be raised unless the person has been
237.34duly notified of the intent of the board to do so. On application of any person feeling
237.35aggrieved, the board shall review the assessment or classification, or both, and correct
238.1it as appears just. The board may not make an individual market value adjustment or
238.2classification change that would benefit the property if the owner or other person having
238.3control over the property has refused the assessor access to inspect the property and the
238.4interior of any buildings or structures as provided in section273.20 . A board member
238.5shall not participate in any actions of the board which result in market value adjustments
238.6or classification changes to property owned by the board member, the spouse, parent,
238.7stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
238.8or niece of a board member, or property in which a board member has a financial interest.
238.9The relationship may be by blood or marriage.
238.10 (c) A local board may reduce assessments upon petition of the taxpayer but the total
238.11reductions must not reduce the aggregate assessment made by the county assessor by more
238.12than one percent. If the total reductions would lower the aggregate assessments made by
238.13the county assessor by more than one percent, none of the adjustments may be made. The
238.14assessor shall correct any clerical errors or double assessments discovered by the board
238.15without regard to the one percent limitation.
238.16 (d) A local board does not have authority to grant an exemption or to order property
238.17removed from the tax rolls.
238.18 (e) A majority of the members may act at the meeting, and adjourn from day to day
238.19until they finish hearing the cases presented. The assessor shall attend and take part in
238.20the proceedings, but must not vote. The county assessor, or an assistant delegated by the
238.21county assessor shall attend the meetings. The board shall list separately all omitted
238.22property added to the list by the board and all items of property increased or decreased,
238.23with the market value of each item of property, added or changed by the board. The
238.24county assessor shall enter all changes made by the board.
238.25 (f) Except as provided in subdivision 3, if a person fails to appear in person, by
238.26counsel, or by written communication before the board after being duly notified of the
238.27board's intent to raise the assessment of the property, or if a person feeling aggrieved by an
238.28assessment or classification fails to apply for a review of the assessment or classification,
238.29the person may not appear before the county board of appeal and equalization for a review.
238.30This paragraph does not apply if an assessment was made after the local board meeting, as
238.31provided in section273.01 , or if the person can establish not having received notice of
238.32market value at least five days before the local board meeting.
238.33 (g) The local board must complete its work and adjourn within 20 days from the
238.34time of convening stated in the notice of the clerk, unless a longer period is approved by
238.35the commissioner of revenue. No action taken after that date is valid. All complaints
238.36about an assessment or classification made after the meeting of the board must be heard
239.1and determined by the county board of equalization. A nonresident may, at any time,
239.2before the meeting of the board file written objections to an assessment or classification
239.3with the county assessor. The objections must be presented to the board at its meeting by
239.4the county assessor for its consideration.
239.5EFFECTIVE DATE.This section is effective the day following final enactment.
239.6 Sec. 28. Minnesota Statutes 2014, section 274.13, subdivision 1, is amended to read:
239.7 Subdivision 1. Members; meetings; rules for equalizing assessments. The county
239.8commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be
239.9present, the deputy county auditor, or, if there is no deputy, the court administrator of the
239.10district court, shall form a board for the equalization of the assessment of the property
239.11of the county, including the property of all cities whose charters provide for a board of
239.12equalization. This board shall be referred to as the county board of appeal and equalization.
239.13The board shall meet annually, on the date specified in section274.14 , at the office of the
239.14auditor. Each member shall take an oath to fairly and impartially perform duties as a
239.15member. Members shall not participate in any actions of the board which result in market
239.16value adjustments or classification changes to property owned by the board member, the
239.17spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle,
239.18aunt, nephew, or niece of a board member, or property in which a board member has a
239.19financial interest. The relationship may be by blood or marriage. The board shall examine
239.20and compare the returns of the assessment of property of the towns or districts, and
239.21equalize them so that each tract or lot of real property and each article or class of personal
239.22property is entered on the assessment list at its market value, subject to the following rules:
239.23 (1) The board shall raise the valuation of each tract or lot of real property which
239.24in its opinion is returned below its market value to the sum believed to be its market
239.25value. The board must first give notice of intention to raise the valuation to the person in
239.26whose name it is assessed, if the person is a resident of the county. The notice must fix
239.27a time and place for a hearing.
239.28 (2) The board shall reduce the valuation of each tract or lot which in its opinion is
239.29returned above its market value to the sum believed to be its market value.
239.30 (3) The board shall raise the valuation of each class of personal property which
239.31in its opinion is returned below its market value to the sum believed to be its market
239.32value. It shall raise the aggregate value of the personal property of individuals, firms, or
239.33corporations, when it believes that the aggregate valuation, as returned, is less than the
239.34market value of the taxable personal property possessed by the individuals, firms, or
240.1corporations, to the sum it believes to be the market value. The board must first give notice
240.2to the persons of intention to do so. The notice must set a time and place for a hearing.
240.3 (4) The board shall reduce the valuation of each class of personal property that
240.4is returned above its market value to the sum it believes to be its market value. Upon
240.5complaint of a party aggrieved, the board shall reduce the aggregate valuation of the
240.6individual's personal property, or of any class of personal property for which the individual
240.7is assessed, which in its opinion has been assessed at too large a sum, to the sum it believes
240.8was the market value of the individual's personal property of that class.
240.9 (5) The board must not reduce the aggregate value of all the property of its county, as
240.10submitted to the county board of equalization, with the additions made by the auditor under
240.11this chapter, by more than one percent of its whole valuation. The board may raise the
240.12aggregate valuation of real property, and of each class of personal property, of the county,
240.13or of any town or district of the county, when it believes it is below the market value of the
240.14property, or class of property, to the aggregate amount it believes to be its market value.
240.15 (6) The board shall change the classification of any property which in its opinion
240.16is not properly classified.
240.17 (7) The board does not have the authority to grant an exemption or to order property
240.18removed from the tax rolls.
240.19 (8) The board may not make an individual market value adjustment or classification
240.20change that would benefit property if the owner or other person having control over the
240.21property has refused the assessor access to inspect the property and the interior of any
240.22buildings or structures as provided in section 273.20.
240.23EFFECTIVE DATE.This section is effective for county board of appeal and
240.24equalization meetings in 2017 and thereafter.
240.25 Sec. 29. Minnesota Statutes 2014, section 274.135, subdivision 3, is amended to read:
240.26 Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts
240.27county boards of appeal and equalization meetings must provide proof to the commissioner
240.28byDecember 1, 2009, and each year thereafter, February 1 that it is in compliance with the
240.29requirements of subdivision 2.Beginning in 2009, This notice must also verify that there
240.30was a quorum of voting members at each meeting of the board of appeal and equalization
240.31in thecurrent previous year. A county that does not comply with these requirements is
240.32deemed to have transferred its board of appeal and equalization powers to the special
240.33board of equalization appointed pursuant to section274.13, subdivision 2 , beginning
240.34with the following year's assessment and continuing unless the powers are reinstated
240.35under paragraph (c). A county that does not comply with the requirements of subdivision
241.12 and has not appointed a special board of equalization shall appoint a special board of
241.2equalization before the following year's assessment.
241.3 (b) The county shall notify the taxpayers when the board of appeal and equalization
241.4for a county has been transferred to the special board of equalization under this subdivision
241.5and, prior to the meeting time of the special board of equalization, the county shall make
241.6available to those taxpayers a procedure for a review of the assessments, including, but
241.7not limited to, open book meetings. This alternate review process must take place in
241.8April and May.
241.9 (c) A county board whose powers are transferred to the special board of equalization
241.10under this subdivision may be reinstated by resolution of the county board and upon proof
241.11of compliance with the requirements of subdivision 2. The resolution and proofs must
241.12be provided to the commissioner byDecember February 1 in order to be effective for
241.13thefollowing current year's assessment.
241.14(d) If a person who was entitled to appeal to the county board of appeal and
241.15equalization or to the county special board of equalization is not able to do so in a
241.16particular year because the county board or special board did not meet the quorum and
241.17training requirements in this section and section274.13 , or because the special board
241.18was not appointed, that person may instead appeal to the commissioner of revenue,
241.19provided that the appeal is received by the commissioner prior to August 1. The appeal
241.20is not subject to either chapter 14 or section270C.92 . The commissioner must issue
241.21an appropriate order to the county assessor in response to each timely appeal, either
241.22upholding or changing the valuation or classification of the property. Prior to October 1 of
241.23each year, the commissioner must charge and bill the county where the property is located
241.24$500 for each tax parcel covered by an order issued under this paragraph in that year.
241.25Amounts received by the commissioner under this paragraph must be deposited in the
241.26state's general fund. If payment of a billed amount is not received by the commissioner
241.27before December 1 of the year when billed, the commissioner must deduct that unpaid
241.28amount from any state aid the commissioner would otherwise pay to the county under
241.29chapter 477A in the next year. Late payments may either be returned to the county
241.30uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid
241.31paid to the county under chapter 477A must be adjusted within 12 months to eliminate any
241.32reduction that occurred because the payment was late. Amounts needed to make these
241.33adjustments are included in the appropriation under section477A.03, subdivision 2 .
241.34EFFECTIVE DATE.This section is effective for county boards of appeal and
241.35equalization meetings held in 2017 and thereafter.
242.1 Sec. 30. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:
242.2 Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the
242.3contrary, on or before September 30, each county and each home rule charter or statutory
242.4city shall certify to the county auditor the proposed property tax levy for taxes payable in
242.5the following year.
242.6 (b) Notwithstanding any law or charter to the contrary, on or before September 15,
242.7each town and each special taxing district shall adopt and certify to the county auditor a
242.8proposed property tax levy for taxes payable in the following year. For towns, the final
242.9certified levy shall also be considered the proposed levy.
242.10 (c) On or before September 30, each school district that has not mutually agreed
242.11with its home county to extend this date shall certify to the county auditor the proposed
242.12property tax levy for taxes payable in the following year. Each school district that has
242.13agreed with its home county to delay the certification of its proposed property tax levy
242.14must certify its proposed property tax levy for the following year no later than October
242.157. The school district shall certify the proposed levy as:
242.16 (1) a specific dollar amount by school district fund, broken down between
242.17voter-approved and non-voter-approved levies and between referendum market value
242.18and tax capacity levies; or
242.19 (2) the maximum levy limitation certified by the commissioner of education
242.20according to section126C.48, subdivision 1 .
242.21 (d) If the board of estimate and taxation or any similar board that establishes
242.22maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
242.23property tax levies for funds under its jurisdiction by charter to the county auditor by the
242.24date specified in paragraph (a), the city shall be deemed to have certified its levies for
242.25those taxing jurisdictions.
242.26 (e) For purposes of this section, "special taxing district" means a special taxing
242.27district as defined in section275.066 . Intermediate school districts that levy a tax
242.28under chapter 124 or 136D, joint powers boards established under sections123A.44 to
242.29123A.446
, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are
242.30also special taxing districts for purposes of this section.
242.31(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
242.32tax levy under this subdivision, the taxing authority shall announce the time and place
242.33ofits any subsequent regularly scheduled meetings at which the budget and levy will be
242.34discussed and at which the public will be allowed to speak. The time and place of those
242.35meetings must be included in the proceedings or summary of proceedings published in the
242.36official newspaper of the taxing authority under section123B.09 ,
375.12 , or
412.191 .
243.1EFFECTIVE DATE.This section is effective the day following final enactment.
243.2 Sec. 31. Minnesota Statutes 2014, section 275.62, subdivision 2, is amended to read:
243.3 Subd. 2. Local governments required to report. For purposes of this section,
243.4"local governmental unit" means a county, home rule charter or statutory city with a
243.5population greater than 2,500, a town with a population greater than 5,000, or a home rule
243.6charter or statutory city or town that receives a distribution from the taconite municipal aid
243.7account in the levy year.
243.8EFFECTIVE DATE.This section is effective the day following final enactment.
243.9 Sec. 32. Minnesota Statutes 2014, section 278.01, subdivision 1, is amended to read:
243.10 Subdivision 1. Determination of validity. (a) Any person having personal property,
243.11or any estate, right, title, or interest in or lien upon any parcel of land, who claims that
243.12such property has been partially, unfairly, or unequally assessed in comparison with other
243.13property in the (1) city, or (2) county, or (3) in the case of a county containing a city of the
243.14first class, the portion of the county excluding the first class city, or that the parcel has
243.15been assessed at a valuation greater than its real or actual value, or that the tax levied
243.16against the same is illegal, in whole or in part, or has been paid, or that the property is
243.17exempt from the tax so levied, may have the validity of the claim, defense, or objection
243.18determined by the district court of the county in which the tax is levied or by the Tax
243.19Court by serving one copy of a petition for such determination upon the county auditor,
243.20one copy on the county attorney, one copy on the county treasurer, and three copies on the
243.21county assessor. The county assessor shall immediately forward one copy of the petition
243.22to the appropriate governmental authority in a home rule charter or statutory city or town
243.23in which the property is located if that city or town employs its own certified assessor.
243.24A copy of the petition shall also be forwarded by the assessor to the school board of the
243.25school district in which the property is located.
243.26(b) In counties where the office of county treasurer has been combined with the
243.27office of county auditor, the county may elect to require the petitioner to serve the number
243.28of copies as determined by the county. The county assessor shall immediately forward one
243.29copy of the petition to the appropriate governmental authority in a home rule charter or
243.30statutory city or town in which the property is located if that city or town employs its own
243.31certified assessor. A list of petitioned properties, including the name of the petitioner, the
243.32identification number of the property, and the estimated market value, shall be sent on
243.33or before the first day of July by the county auditor/treasurer to the school board of the
243.34school district in which the property is located.
244.1(c) For all counties, the petitioner must file the copies with proof of service, in the
244.2office of the court administrator of the district court on or before April 30 of the year in
244.3which the tax becomes payable. A petition for determination under this section may be
244.4transferred by the district court to the Tax Court. An appeal may also be taken to the Tax
244.5Court under chapter 271 at any time following receipt of the valuation notice that county
244.6assessors or city assessors having the powers of a county assessor are required by section
244.7273.121
to send to persons whose property is to be included on the assessment roll that
244.8year, but prior to May 1 of the year in which the taxes are payable.
244.9EFFECTIVE DATE.This section is effective the day following final enactment.
244.10 Sec. 33. Minnesota Statutes 2014, section 282.01, subdivision 1a, is amended to read:
244.11 Subd. 1a. Conveyance to public entities. (a) Upon written request from a state
244.12agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited land
244.13must be withheld from sale or lease to others for a maximum of six months. The request
244.14must be submitted to the county auditor. Upon receipt, the county auditor must withhold
244.15the parcel from sale or lease to any other party for six months, and must confirm the
244.16starting date of the six-month withholding period to the requesting agency or subdivision.
244.17If the request is from a governmental subdivision of the state, the governmental
244.18subdivision must pay the maintenance costs incurred by the county during the period the
244.19parcel is withheld. The county board may approve a sale or conveyance to the requesting
244.20party during the withholding period. A conveyance of the property to the requesting
244.21party terminates the withholding period.
244.22A governmental subdivision of the state must not make, and a county auditor must
244.23not act upon, a second request to withhold a parcel from sale or lease within 18 months
244.24of a previous request for that parcel. A county may reject a request made under this
244.25paragraph if the request is made more than 30 days after the county has given notice to the
244.26requesting state agency or governmental subdivision of the state that the county intends to
244.27sell or otherwise dispose of the property.
244.28(b) Nonconservation tax-forfeited lands may be sold by the county board, for
244.29their market value as determined by the county board, to an organized or incorporated
244.30governmental subdivision of the state for any public purpose for which the subdivision is
244.31authorized to acquire property. When the term "market value" is used in this section, it
244.32means an estimate of the full and actual market value of the parcel as determined by the
244.33county board, but in making this determination, the board and the persons employed by or
244.34under contract with the board in order to perform, conduct, or assist in the determination,
244.35are exempt from the licensure requirements of chapter 82B.
245.1(c) Nonconservation tax-forfeited lands may bereleased from the trust in favor of
245.2the taxing districts on application to sold by the county board by, for their market value as
245.3determined by the county board, to a state agency foran authorized use at not less than
245.4their market value as determined by the county board any public purpose for which the
245.5agency is authorized to acquire property.
245.6(d) Nonconservation tax-forfeited lands may be sold by the county board to an
245.7organized or incorporated governmental subdivision of the state or state agency for less
245.8than their market value if:
245.9(1) the county board determines that a sale at a reduced price is in the public interest
245.10because a reduced price is necessary to provide an incentive to correct the blighted
245.11conditions that make the lands undesirable in the open market, or the reduced price will
245.12lead to the development of affordable housing; and
245.13(2) the governmental subdivision or state agency has documented its specific plans
245.14for correcting the blighted conditions or developing affordable housing, and the specific
245.15law or laws that empower it to acquire real property in furtherance of the plans.
245.16If the sale under this paragraph is to a governmental subdivision of the state, the
245.17commissioner of revenue must convey the property on behalf of the state by quitclaim
245.18deed. If the sale under this paragraph is to a state agency, the property is released from
245.19the trust in favor of the taxing districts and the commissioner of revenue mustissue a
245.20conveyance document that releases the property from the trust in favor of the taxing
245.21districts convey the property on behalf of the state by quitclaim deed to the agency.
245.22(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
245.23may be conveyed by the commissioner of revenue in the name of the state to a
245.24governmental subdivision for an authorized public use, if an application is submitted to the
245.25commissioner which includes a statement of facts as to the use to be made of the tract and
245.26the favorable recommendation of the county board. For the purposes of this paragraph,
245.27"authorized public use" means a use that allows an indefinite segment of the public to
245.28physically use and enjoy the property in numbers appropriate to its size and use, or is for a
245.29public service facility. Authorized public uses as defined in this paragraph are limited to:
245.30(1) a road, or right-of-way for a road;
245.31(2) a park that is both available to, and accessible by, the public that contains
245.32improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
245.33(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
245.34with a reasonable amount of surrounding land maintained in its natural state;
246.1(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
246.2including transit ways, park-and-ride lots, transit stations, maintenance and garage
246.3facilities, and other facilities related to a public transit system;
246.4(5) public beaches or boat launches;
246.5(6) public parking;
246.6(7) civic recreation or conference facilities; and
246.7(8) public service facilities such as fire halls, police stations, lift stations, water
246.8towers, sanitation facilities, water treatment facilities, and administrative offices.
246.9No monetary compensation or consideration is required for the conveyance, except as
246.10provided in subdivision 1g, but the conveyance is subject to the conditions provided in
246.11law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
246.12(f) The commissioner of revenue shall convey a parcel of nonconservation
246.13tax-forfeited land to a local governmental subdivision of the state by quitclaim deed
246.14on behalf of the state upon the favorable recommendation of the county board if the
246.15governmental subdivision has certified to the board that prior to forfeiture the subdivision
246.16was entitled to the parcel under a written development agreement or instrument, but
246.17the conveyance failed to occur prior to forfeiture. No compensation or consideration is
246.18required for, and no conditions attach to, the conveyance.
246.19(g) The commissioner of revenue shall convey a parcel of nonconservation
246.20tax-forfeited land to the association of a common interest community by quitclaim deed
246.21upon the favorable recommendation of the county board if the association certifies to the
246.22board that prior to forfeiture the association was entitled to the parcel under a written
246.23agreement, but the conveyance failed to occur prior to forfeiture. No compensation or
246.24consideration is required for, and no conditions attach to, the conveyance.
246.25(h) Conservation tax-forfeited land may be sold to a governmental subdivision of
246.26the state for less than its market value for either: (1) creation or preservation of wetlands;
246.27(2) drainage or storage of storm water under a storm water management plan; or (3)
246.28preservation, or restoration and preservation, of the land in its natural state. The deed must
246.29contain a restrictive covenant limiting the use of the land to one of these purposes for
246.3030 years or until the property is reconveyed back to the state in trust. At any time, the
246.31governmental subdivision may reconvey the property to the state in trust for the taxing
246.32districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
246.33No part of a purchase price determined under this paragraph shall be refunded upon a
246.34reconveyance, but the amount paid for a conveyance under this paragraph may be taken
246.35into account by the county board when setting the terms of a future sale of the same
246.36property to the same governmental subdivision under paragraph (b) or (d). If the lands
247.1are unplatted and located outside of an incorporated municipality and the commissioner
247.2of natural resources determines there is a mineral use potential, the sale is subject to the
247.3approval of the commissioner of natural resources.
247.4(i) A park and recreation board in a city of the first class is a governmental
247.5subdivision for the purposes of this section.
247.6(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed
247.7by the commissioner of revenue in the name of the state to a governmental subdivision for
247.8a school forest under section89.41 . An application that includes a statement of facts as
247.9to the use to be made of the tract and the favorable recommendation of the county board
247.10and the commissioner of natural resources must be submitted to the commissioner of
247.11revenue. No monetary compensation or consideration is required for the conveyance, but
247.12the conveyance is subject to the conditional use and reversion provisions of subdivisions
247.131c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the
247.14property back to the state in trust for the taxing districts. The deed of reconveyance is
247.15subject to approval by the commissioner of revenue.
247.16EFFECTIVE DATE.This section is effective the day following final enactment.
247.17 Sec. 34. Minnesota Statutes 2014, section 282.01, subdivision 1d, is amended to read:
247.18 Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years
247.19from the date of any conveyance of tax-forfeited land to a governmental subdivision for
247.20an authorized public use as provided in this section, regardless of when the deed for the
247.21authorized public use was executed, if the governmental subdivision has failed to put the
247.22land to that use, or abandons that use, the governing body of the subdivision must: (1)
247.23with the approval of the county board, purchase the property for an authorized public
247.24purpose at the present market value as determined by the county board, or (2) authorize
247.25the proper officers to convey the land, or the part of the land not required for an authorized
247.26public use, to the state of Minnesota in trust for the taxing districts. If the governing body
247.27purchases the property under clause (1), the commissioner of revenue shall, upon proper
247.28application submitted by the county auditor and upon the reconveyance of the land subject
247.29to the conditional use deed to the state, convey the property on behalf of the state by
247.30quitclaim deed to the subdivision free of a use restriction and the possibility of reversion
247.31or defeasement. If the governing body decides to reconvey the property to the state under
247.32this clause, the officers shall execute a deed of conveyance immediately. The conveyance
247.33is subject to the approval of the commissioner and its form must be approved by the
247.34attorney general. For 15 years from the date of the conveyance, there is no failure to put
247.35the land to the authorized public use and no abandonment of that use if a formal plan of
248.1the governmental subdivision, including, but not limited to, a comprehensive plan or land
248.2use plan, shows an intended future use of the land for the authorized public use.
248.3(b) Property held by a governmental subdivision of the state under a conditional use
248.4deed executed under this section by the commissioner of revenue on or after January 1,
248.52007, may be acquired by that governmental subdivision after 15 years from the date
248.6of the conveyance if the commissioner determines upon written application from the
248.7subdivision that the subdivision has in fact put the property to the authorized public use for
248.8which it was conveyed, and the subdivision has made a finding that it has no current plans
248.9to change the use of the lands. Prior to conveying the property, the commissioner shall
248.10inquire whether the county board where the land is located objects to a conveyance of the
248.11property to the subdivision without conditions and without further act by or obligation
248.12of the subdivision. If the county does not object within 60 days, and the commissioner
248.13makes a favorable determination, the commissioner shall issue a quitclaim deed on behalf
248.14of the state unconditionally conveying the property to the governmental subdivision. For
248.15purposes of this paragraph, demonstration of an intended future use for the authorized
248.16public use in a formal plan of the governmental subdivision does not constitute use for
248.17that authorized public use.
248.18(c) Property held by a governmental subdivision of the state under a conditional use
248.19deed executed under this section by the commissioner of revenue before January 1, 2007,
248.20is released from the use restriction and possibility of reversion on January 1, 2022, if the
248.21county board records a resolution describing the land and citing this paragraph. The
248.22county board may authorize the county treasurer to deduct the amount of the recording
248.23fees from future settlements of property taxes to the subdivision.
248.24(d) Except for tax-forfeited land conveyed to establish a school forest under section
248.2589.41
, property conveyed under a conditional use deed executed under this section by
248.26the commissioner of revenue, regardless of when the deed for the authorized public use
248.27was executed, is released from the use restriction and reverter, and any use restriction or
248.28reverter for which no declaration of reversion has been recorded with the county recorder
248.29or registrar of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30
248.30years from the date the deed was acknowledged; or (3) final resolution of an appeal to
248.31district court under subdivision 1e, if a lis pendens related to the appeal is recorded in the
248.32office of the county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
248.33(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a
248.34school forest under section89.41 is subject to a perpetual conditional use deed and reverter.
248.35The property reverts to the state in trust for the taxing districts by operation of law if the
248.36commissioner of natural resources determines and reports to the commissioner of revenue
249.1under section89.41, subdivision 3 , that the governmental subdivision has failed to use the
249.2land for school forest purposes for three consecutive years. The commissioner of revenue
249.3shall record a declaration of reversion for land that has reverted under this paragraph.
249.4EFFECTIVE DATE.This section is effective the day following final enactment.
249.5 Sec. 35. Minnesota Statutes 2014, section 477A.013, is amended by adding a
249.6subdivision to read:
249.7 Subd. 14. Communication by electronic mail. Prior to receiving aid pursuant to
249.8this section, a city must register an official electronic mail address with the commissioner,
249.9which the commissioner may use as an exclusive means to communicate with the city.
249.10EFFECTIVE DATE.This section is effective for aids payable in 2017 and thereafter.
249.11 Sec. 36. Minnesota Statutes 2014, section 477A.19, is amended by adding a
249.12subdivision to read:
249.13 Subd. 3a. Certification. On or before June 1 of each year, the commissioner of
249.14natural resources shall certify to the commissioner of revenue the number of watercraft
249.15launches and the number of watercraft trailer parking spaces in each county.
249.16EFFECTIVE DATE.This section is effective for aids payable in 2017 and thereafter.
249.17 Sec. 37. Minnesota Statutes 2014, section 477A.19, is amended by adding a
249.18subdivision to read:
249.19 Subd. 3b. Certification. On or before June 1 of each year, the commissioner of
249.20natural resources shall certify to the commissioner of revenue the counties that complied
249.21with the requirements of subdivision 3 the prior year and are eligible to receive aid
249.22under this section.
249.23EFFECTIVE DATE.This section is effective for aids payable in 2017 and thereafter.
249.24 Sec. 38. Minnesota Statutes 2014, section 559.202, subdivision 2, is amended to read:
249.25 Subd. 2. Exception. This section does not apply to sales made under chapter 282 or
249.26if the purchaser is represented throughout the transaction by either:
249.27(1) a person licensed to practice law in this state; or
249.28(2) a person licensed as a real estate broker or salesperson under chapter 82,
249.29provided that the representation does not create a dual agency, as that term is defined
249.30in section82.55, subdivision 6 .
250.1EFFECTIVE DATE.This section is effective for sales of tax-forfeited land
250.2occurring after the day following final enactment.
250.3 Sec. 39. Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read:
250.4 Subd. 2. Payment of supplemental credit. (a) The commissioner must pay
250.5supplemental credit amounts to each qualifying taxpayer by October 15, 2014.
250.6(b) If the commissioner cannot locate the qualifying taxpayer by October 15, 2016,
250.7or if a qualifying taxpayer to whom a warrant was issued does not cash that warrant within
250.8two years from the date the warrant was issued, the right to the credit shall lapse and the
250.9warrant shall be deposited in the general fund.
250.10EFFECTIVE DATE.This section is effective the day following final enactment.
250.11 Sec. 40. Laws 2014, chapter 308, article 9, section 94, is amended to read:
250.12 Sec. 94. REPEALER.
250.13(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision
250.1419e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules,
250.15part 8007.0200, are repealed.
250.16(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11,
250.17subdivision 2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51,
250.1853, 67, 72, and 82;272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03,
250.19subdivision 3; 273.075; 273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77;
250.20279.32; 281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20,
250.21subdivision 4; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision
250.227; 297A.666; 297A.71, subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08,
250.23subdivision 11; 297H.10, subdivision 2; 469.174, subdivision 10c; 469.175, subdivision
250.242b; 469.176, subdivision 1i; 469.177, subdivision 10; 477A.0124, subdivisions 1 and 6;
250.25and 505.173, Minnesota Statutes 2013 Supplement, section 273.1103, Laws 1993, chapter
250.26375, article 9, section 47, and Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800;
250.27and 8130.7500, subpart 7, are repealed.
250.28(c) Minnesota Statutes 2012, section 469.1764, is repealed.
250.29(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision
250.3038; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338;
250.31469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013
250.32Supplement, section 469.340, subdivision 4, are repealed.
250.33(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.
251.1EFFECTIVE DATE.This section is effective retroactively from May 20, 2014,
251.2and pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027,
251.3subdivision 2, is revived and reenacted as of that date.
251.4 Sec. 41. REPEALER.
251.5(a) Minnesota Statutes 2014, section 281.22, is repealed.
251.6(b) Minnesota Rules, part 8100.0700, is repealed.
251.7EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
251.8Paragraph (b) is effective beginning with assessment year 2016.
251.11 Section 1. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:
251.12 Subdivision 1. Annual report required. Every railroad company doing business
251.13in Minnesota shall annually file with the commissioner on or before March 31 a report
251.14under oath setting forth the information prescribed by the commissioner to enable the
251.15commissioner to make the valuation and equalization required by sections270.80 to
251.16270.87
. The commissioner shall prescribe the content, format, and manner of the report
251.17pursuant to section 270C.30, except that a "law administered by the commissioner"
251.18includes the property tax laws. If a report is made by electronic means, the taxpayer's
251.19signature is defined pursuant to section 270C.304, except that a "law administered by the
251.20commissioner" includes the property tax laws.
251.21EFFECTIVE DATE.This section is effective the day following final enactment.
251.22 Sec. 2. Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read:
251.23 Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed
251.24and certain amount of money, which equals or exceeds $25 and which is due and payable
251.25to a claimant agency. The term includes criminal fines imposed under section609.10 or
251.26609.125
, fines imposed for petty misdemeanors as defined in section
609.02, subdivision
251.274a , and restitution. A debt may arise under a contractual or statutory obligation, a court
251.28order, or other legal obligation, but need not have been reduced to judgment.
251.29 A debt includes any legal obligation of a current recipient of assistance which is
251.30based on overpayment of an assistance grant where that payment is based on a client
251.31waiver or an administrative or judicial finding of an intentional program violation;
251.32or where the debt is owed to a program wherein the debtor is not a client at the time
252.1notification is provided to initiate recovery under this chapter and the debtor is not a
252.2current recipient of food support, transitional child care, or transitional medical assistance.
252.3 (b) A debt does not include any legal obligation to pay a claimant agency for medical
252.4care, including hospitalization if the income of the debtor at the time when the medical
252.5care was rendered does not exceed the following amount:
252.6 (1) for an unmarried debtor, an income of$8,800 $12,560 or less;
252.7 (2) for a debtor with one dependent, an income of$11,270 $16,080 or less;
252.8 (3) for a debtor with two dependents, an income of$13,330 $19,020 or less;
252.9 (4) for a debtor with three dependents, an income of$15,120 $21,580 or less;
252.10 (5) for a debtor with four dependents, an income of$15,950 $22,760 or less; and
252.11 (6) for a debtor with five or more dependents, an income of$16,630 $23,730 or less.
252.12For purposes of this paragraph, "debtor" means the individual whose income,
252.13together with the income of the individual's spouse, other than a separated spouse, brings
252.14the individual within the income provisions of this paragraph. For purposes of this
252.15paragraph, a spouse, other than a separated spouse, shall be considered a dependent.
252.16 (c) The commissioner shall adjust the income amounts in paragraph (b) by the
252.17percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
252.18Code, except that in section 1(f)(3)(B) the word "1999 2014" shall be substituted for
252.19the word "1992." For2001 2016, the commissioner shall then determine the percent
252.20change from the 12 months ending on August 31,1999 2014, to the 12 months ending on
252.21August 31,2000 2015, and in each subsequent year, from the 12 months ending on August
252.2231,1999 2014, to the 12 months ending on August 31 of the year preceding the taxable
252.23year. The determination of the commissioner pursuant to this subdivision shall not be
252.24considered a "rule" and shall not be subject to the Administrative Procedure Act contained
252.25in chapter 14. The income amount as adjusted must be rounded to the nearest $10 amount.
252.26If the amount ends in $5, the amount is rounded up to the nearest $10 amount.
252.27 (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of
252.28the dollar amount of the premium authorized under section256L.15, subdivision 1a .
252.29EFFECTIVE DATE.The section is effective retroactively for debts incurred after
252.30December 31, 2014.
252.31 Sec. 3. Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read:
252.32 Subdivision 1. Disclosure to commissioner of human services. (a) On the request
252.33of the commissioner of human services, the commissioner shall disclose return information
252.34regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to
252.35the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
253.1 (b) Data that may be disclosed are limited to data relating to the identity,
253.2whereabouts, employment, income, and property of a person owing or alleged to be owing
253.3an obligation of child support.
253.4 (c) The commissioner of human services may request data only for the purposes of
253.5carrying out the child support enforcement program and to assist in the location of parents
253.6who have, or appear to have, deserted their children. Data received may be used only
253.7as set forth in section256.978 .
253.8 (d) The commissioner shall provide the records and information necessary to
253.9administer the supplemental housing allowance to the commissioner of human services.
253.10 (e) At the request of the commissioner of human services, the commissioner of
253.11revenue shall electronically match the Social Security numbers and names of participants
253.12in the telephone assistance plan operated under sections237.69 to
237.71 , with those of
253.13property tax refund filers, and determine whether each participant's household income is
253.14within the eligibility standards for the telephone assistance plan.
253.15 (f) The commissioner may provide records and information collected under sections
253.16295.50
to
295.59 to the commissioner of human services for purposes of the Medicaid
253.17Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
253.18102-234. Upon the written agreement by the United States Department of Health and
253.19Human Services to maintain the confidentiality of the data, the commissioner may provide
253.20records and information collected under sections295.50 to
295.59 to the Centers for
253.21Medicare and Medicaid Services section of the United States Department of Health and
253.22Human Services for purposes of meeting federal reporting requirements.
253.23 (g) The commissioner may provide records and information to the commissioner of
253.24human services as necessary to administer the early refund of refundable tax credits.
253.25 (h) The commissioner may disclose information to the commissioner of human
253.26services as necessaryto verify income for income verification for eligibility and premium
253.27payment under the MinnesotaCare program, under section256L.05, subdivision 2 , as well
253.28as the medical assistance program under section 256B.
253.29 (i) The commissioner may disclose information to the commissioner of human
253.30services necessary to verify whether applicants or recipients for the Minnesota family
253.31investment program, general assistance, food support, Minnesota supplemental aid
253.32program, and child care assistance have claimed refundable tax credits under chapter 290
253.33and the property tax refund under chapter 290A, and the amounts of the credits.
253.34 (j) The commissioner may disclose information to the commissioner of human
253.35services necessary to verify income for purposes of calculating parental contribution
253.36amounts under section252.27, subdivision 2a .
254.1EFFECTIVE DATE.This section is effective the day following final enactment.
254.2 Sec. 4. Minnesota Statutes 2014, section 270C.30, is amended to read:
254.3270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.
254.4Except as otherwise provided by law, the commissioner shall prescribe the content
254.5and, format, and manner of all returns and other forms required to be filed under a law
254.6administered by the commissioner, and may furnish them subject to charge on application.
254.7EFFECTIVE DATE.This section is effective the day following final enactment.
254.8 Sec. 5. Minnesota Statutes 2014, section 270C.33, subdivision 5, is amended to read:
254.9 Subd. 5. Prohibition against collection during appeal period of an order. No
254.10collection action can be taken on an order of assessment, or any other order imposing a
254.11liability, including the filing of liens under section270C.63 , and no late payment penalties
254.12may be imposed when a return has been filed for the tax type and period upon which the
254.13order is based, during the appeal period of an order. The appeal period of an order ends:
254.14(1) 60 days after theorder has been mailed to the taxpayer notice date designated by the
254.15commissioner on the order; (2) if an administrative appeal is filed under section270C.35 ,
254.1660 days after the notice date designated by the commissioner on the written determination
254.17of the administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when
254.18the decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the
254.19appeal is based upon a constitutional challenge to the tax, 60 days after final determination
254.20of the appeal. This subdivision does not apply to a jeopardy assessment under section
254.21270C.36
, or a jeopardy collection under section
270C.36 .
254.22EFFECTIVE DATE.This section is effective for orders dated after December
254.2331, 2016.
254.24 Sec. 6. Minnesota Statutes 2014, section 270C.33, subdivision 8, is amended to read:
254.25 Subd. 8. Sufficiency of notice. An assessment of tax made by the commissioner,
254.26sent postage prepaid by United States mail to the taxpayer at the taxpayer's last known
254.27address, or sent by electronic mail to the taxpayer's last known electronic mailing address
254.28as provided for in section325L.08 , is sufficient even if the taxpayer is deceased or is
254.29under a legal disability, or, in the case of a corporation, has terminated its existence, unless
254.30the commissioner has been provided with a new address by a party authorized to receive
254.31notices of assessment. Notice of an assessment is sufficient if it is sent on or before the
254.32notice date designated by the commissioner on the assessment.
255.1EFFECTIVE DATE.This section is effective for assessments dated after December
255.231, 2016.
255.3 Sec. 7. Minnesota Statutes 2014, section 270C.34, subdivision 2, is amended to read:
255.4 Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or
255.5section289A.60, subdivision 4 , or a request for abatement of interest or additional tax
255.6charge, must be filed with the commissioner within 60 days of the notice date of thenotice
255.7was mailed to the taxpayer's last known address, stating that a penalty has been imposed
255.8or additional tax charge. For purposes of this section, the term "notice date" means the
255.9notice date designated by the commissioner on the order or other notice that a penalty or
255.10additional tax charge has been imposed.
255.11(b) If the commissioner issues an order denying a request for abatement of penalty,
255.12interest, or additional tax charge, the taxpayer may file an administrative appeal as
255.13provided in section270C.35 or appeal to Tax Court as provided in section
271.06 .
255.14(c) If the commissioner does not issue an order on the abatement request within
255.1560 days from the date the request is received, the taxpayer may appeal to Tax Court as
255.16provided in section271.06 .
255.17EFFECTIVE DATE.This section is effective for orders and notices dated after
255.18December 31, 2016.
255.19 Sec. 8. Minnesota Statutes 2014, section 270C.347, subdivision 1, is amended to read:
255.20 Subdivision 1. Checks and warrants, authority to reissue. Notwithstanding any
255.21other provision of law, the commissioner may, based on a showing of reasonable cause,
255.22reissue an uncashed rebate, supplemental agricultural credit, or property tax refund warrant
255.23or check that has lapsed under any provision of law relating to rebates or under section
255.24290A.18, subdivision 2
. The authority to reissue warrants or checks under this subdivision
255.25is limited to five years after the date of issuance of the original warrant or check.
255.26EFFECTIVE DATE.This section is effective the day following final enactment.
255.27 Sec. 9. Minnesota Statutes 2014, section 270C.35, subdivision 3, is amended to read:
255.28 Subd. 3. Notice date. For purposes of this section, the term "notice date" means the
255.29dateof designated by the commissioner on the order adjusting the tax or order denying a
255.30request for abatement, or, in the case of a denied refund, the notice dateof designated by
255.31the commissioner on the notice of denial.
256.1EFFECTIVE DATE.This section is effective for orders and notices dated after
256.2December 31, 2016.
256.3 Sec. 10. Minnesota Statutes 2014, section 270C.35, is amended by adding a
256.4subdivision to read:
256.5 Subd. 11. Dismissal of administrative appeal. If a taxpayer files an administrative
256.6appeal for an order of the commissioner and also files an appeal to the Tax Court for
256.7that same order of the commissioner, the administrative appeal is dismissed and the
256.8commissioner is no longer required to make a determination of appeal under subdivision 6.
256.9EFFECTIVE DATE.This section is effective for all administrative appeals filed
256.10after June 30, 2016.
256.11 Sec. 11. Minnesota Statutes 2014, section 270C.38, subdivision 1, is amended to read:
256.12 Subdivision 1. Sufficient notice. (a) If no method of notification of a written
256.13determination or action of the commissioner is otherwise specifically provided for by
256.14law, notice of the determination or action sent postage prepaid by United States mail to
256.15the taxpayer or other person affected by the determination or action at the taxpayer's
256.16or person's last known address, is sufficient. If the taxpayer or person being notified is
256.17deceased or is under a legal disability, or, in the case of a corporation being notified that
256.18has terminated its existence, notice to the last known address of the taxpayer, person, or
256.19corporation is sufficient, unless the department has been provided with a new address by a
256.20party authorized to receive notices from the commissioner.
256.21(b) If a taxpayer or other person agrees to accept notification by electronic means,
256.22notice of a determination or action of the commissioner sent by electronic mail to the
256.23taxpayer's or person's last known electronic mailing address as provided for in section
256.24325L.08
is sufficient.
256.25(c) Notice of a determination or action of the commissioner is sufficient if it is sent
256.26on or before the notice date designated by the commissioner on the notice.
256.27EFFECTIVE DATE.This section is effective for notices dated after December
256.2831, 2016.
256.29 Sec. 12. Minnesota Statutes 2014, section 270C.445, is amended by adding a
256.30subdivision to read:
256.31 Subd. 9. Enforcement; limitations. (a) Notwithstanding any other law, the
256.32imposition of a penalty or any other action against a tax return preparer authorized by
257.1subdivision 6 with respect to a return may be taken by the commissioner within the period
257.2provided by section 289A.38 to assess tax on that return.
257.3(b) Imposition of a penalty or other action against a tax return preparer authorized
257.4by subdivision 6 other than with respect to a return must be taken by the commissioner
257.5within five years of the violation of statute.
257.6EFFECTIVE DATE.This section is effective for tax preparation services provided
257.7after the day following final enactment.
257.8 Sec. 13. Minnesota Statutes 2014, section 270C.446, subdivision 5, is amended to read:
257.9 Subd. 5. Removal from list. The commissioner shall remove the name of a tax
257.10preparer from the list of tax preparers published under this section:
257.11(1) when the commissioner determines that the name was included on the list in error;
257.12(2) within90 days three years after the preparer has demonstrated to the commissioner
257.13that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied
257.14any sentence imposed, successfully completed any probationary period imposed, and
257.15successfully completed any remedial actions required by the commissioner, the State
257.16Board of Accountancy, or the Lawyers Board of Professional Responsibility; or
257.17(3) when the commissioner has been notified that the tax preparer is deceased.
257.18EFFECTIVE DATE.This section is effective the day following final enactment.
257.19 Sec. 14. Minnesota Statutes 2014, section 270C.72, subdivision 4, is amended to read:
257.20 Subd. 4. Licensing authority; duties. All licensing authorities must require
257.21the applicant to provide the applicant's Social Security number or individual taxpayer
257.22identification number and Minnesota business identification number, as applicable, on
257.23all license applications. Upon request of the commissioner, the licensing authority
257.24must provide the commissioner with a list of all applicants, including the name,
257.25address, business name and address, and Social Security number, or individual taxpayer
257.26identification number and business identification number, as applicable, of each applicant.
257.27The commissioner may request from a licensing authority a list of the applicants no more
257.28than once each calendar year.
257.29EFFECTIVE DATE.This section is effective the day following final enactment.
257.30 Sec. 15. Minnesota Statutes 2014, section 271.06, subdivision 2, is amended to read:
257.31 Subd. 2. Time; notice; intervention. Except as otherwise provided by law, within
257.3260 days after the noticeof the making and filing date of an order of the commissioner of
258.1revenue, the appellant, or the appellant's attorney, shall serve a notice of appeal upon
258.2the commissioner and file the original, with proof of such service, with the Tax Court
258.3administrator or with the court administrator of district court acting as court administrator
258.4of the Tax Court; provided, that the Tax Court, for cause shown, may by written order
258.5extend the time for appealing for an additional period not exceeding 30 days. For purposes
258.6of this section, the term "notice date" means the notice date designated by the commissioner
258.7on the order. The notice of appeal shall be in the form prescribed by the Tax Court. Within
258.8five days after receipt, the commissioner shall transmit a copy of the notice of appeal to
258.9the attorney general. The attorney general shall represent the commissioner, if requested,
258.10upon all such appeals except in cases where the attorney general has appealed in behalf of
258.11the state, or in other cases where the attorney general deems it against the interests of the
258.12state to represent the commissioner, in which event the attorney general may intervene or
258.13be substituted as an appellant in behalf of the state at any stage of the proceedings.
258.14Upon a final determination of any other matter over which the court is granted
258.15jurisdiction under section271.01, subdivision 5 , the taxpayer or the taxpayer's attorney
258.16shall file a petition or notice of appeal as provided by law with the court administrator of
258.17district court, acting in the capacity of court administrator of the Tax Court, with proof of
258.18service of the petition or notice of appeal as required by law and within the time required
258.19by law. As used in this subdivision, "final determination" includes a notice of assessment
258.20and equalization for the year in question received from the local assessor, an order of the
258.21local board of equalization, or an order of a county board of equalization.
258.22The Tax Court shall prescribe a filing system so that the notice of appeal or petition
258.23filed with the district court administrator acting as court administrator of the Tax Court is
258.24forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
258.25property valuation for which the assessor, a local board of equalization, a county board of
258.26equalization or the commissioner of revenue has issued an order, the officer issuing the
258.27order shall be notified of the filing of the appeal. The notice of appeal or petition shall be
258.28in the form prescribed by the Tax Court.
258.29EFFECTIVE DATE.This section is effective for orders dated after December
258.3031, 2016.
258.31 Sec. 16. Minnesota Statutes 2014, section 271.06, subdivision 7, is amended to read:
258.32 Subd. 7. Rules. Except as provided in section278.05, subdivision 6 , the Rules
258.33of Evidence and Civil Procedure for the district court of Minnesota shall govern the
258.34procedures in the Tax Court, where practicable. The Rules of Civil Procedure do not apply
258.35to alter the 60-day period of time to file a notice of appeal provided in subdivision 2. The
259.1Tax Court may adopt rules under chapter 14. The rules in effect on January 1, 1989,
259.2apply until superseded.
259.3EFFECTIVE DATE.This section is effective for orders dated after December
259.431, 2016.
259.5 Sec. 17. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:
259.6 Subd. 10. Personal property used for pollution control. Personal property used
259.7primarily for the abatement and control of air, water, or land pollution is exempt to the
259.8extent that it is so used, and real property is exempt if it is used primarily for abatement
259.9and control of air, water, or land pollution as part of an agricultural operation, as a part
259.10of a centralized treatment and recovery facility operating under a permit issued by the
259.11Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
259.12Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
259.13treatment facility and for the treatment, recovery, and stabilization of metals, oils,
259.14chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
259.15part of an electric generation system. For purposes of this subdivision, personal property
259.16includes ponderous machinery and equipment used in a business or production activity
259.17that at common law is considered real property.
259.18Any taxpayer requesting exemption of all or a portion of any real property or any
259.19equipment or device, or part thereof, operated primarily for the control or abatement of air,
259.20water, or land pollution shall file an application with the commissioner of revenue. The
259.21commissioner shall develop an electronic means to notify interested parties when electric
259.22power generation facilities have filed an application. The commissioner shall prescribe
259.23the content, format, and manner of the application pursuant to section 270C.30, except
259.24that a "law administered by the commissioner" includes the property tax laws, and if an
259.25application is made by electronic means, the taxpayer's signature is defined pursuant to
259.26section 270C.304, except that a "law administered by the commissioner" includes the
259.27property tax laws. The Minnesota Pollution Control Agency shall upon request of the
259.28commissioner furnish information and advice to the commissioner.
259.29The information and advice furnished by the Minnesota Pollution Control
259.30Agency must include statements as to whether the equipment, device, or real property
259.31meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution
259.32Control Agency, and whether the equipment, device, or real property is installed or
259.33operated in accordance with it. On determining that property qualifies for exemption,
259.34the commissioner shall issue an order exempting the property from taxation. The
259.35commissioner shall develop an electronic means to notify interested parties when
260.1the commissioner has issued an order exempting property from taxation under this
260.2subdivision. The equipment, device, or real property shall continue to be exempt from
260.3taxation as long as the order issued by the commissioner remains in effect.
260.4EFFECTIVE DATE.This section is effective the day following final enactment.
260.5 Sec. 18. Minnesota Statutes 2014, section 272.0211, subdivision 1, is amended to read:
260.6 Subdivision 1. Efficiency determination and certification. An owner or operator
260.7of a new or existing electric power generation facility, excluding wind energy conversion
260.8systems, may apply to the commissioner of revenue for a market value exclusion on the
260.9property as provided for in this section. This exclusion shall apply only to the market
260.10value of the equipment of the facility, and shall not apply to the structures and the land
260.11upon which the facility is located. The commissioner of revenue shall prescribe theforms
260.12content, format, manner, and procedures for this application pursuant to section 270C.30,
260.13except that a "law administered by the commissioner" includes the property tax laws. If
260.14an application is made by electronic means, the taxpayer's signature is defined pursuant
260.15to section 270C.304, except that a "law administered by the commissioner" includes the
260.16property tax laws. Upon receiving the application, the commissioner of revenue shall: (1)
260.17request the commissioner of commerce to make a determination of the efficiency of the
260.18applicant's electric power generation facility; and (2) shall develop an electronic means to
260.19notify interested parties when electric power generation facilities have filed an application.
260.20The commissioner of commerce shall calculate efficiency as the ratio of useful energy
260.21outputs to energy inputs, expressed as a percentage, based on the performance of the
260.22facility's equipment during normal full load operation. The commissioner must include in
260.23this formula the energy used in any on-site preparation of materials necessary to convert
260.24the materials into the fuel used to generate electricity, such as a process to gasify petroleum
260.25coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in
260.26the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible
260.27project under section216B.2424 ; for these instances, the commissioner shall adjust the
260.28heating value to allow for energy consumed for evaporation of the moisture in the wood.
260.29The applicant shall provide the commissioner of commerce with whatever information the
260.30commissioner deems necessary to make the determination. Within 30 days of the receipt
260.31of the necessary information, the commissioner of commerce shall certify the findings of
260.32the efficiency determination to the commissioner of revenue and to the applicant. The
260.33commissioner of commerce shall determine the efficiency of the facility and certify the
260.34findings of that determination to the commissioner of revenue every two years thereafter
260.35from the date of the original certification.
261.1EFFECTIVE DATE.This section is effective the day following final enactment.
261.2 Sec. 19. Minnesota Statutes 2014, section 272.025, subdivision 1, is amended to read:
261.3 Subdivision 1. Statement of exemption. (a) Except in the case of property owned
261.4by the state of Minnesota or any political subdivision thereof, and property exempt from
261.5taxation under section272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at
261.6the times provided in subdivision 3, a taxpayer claiming an exemption from taxation
261.7on property described in section272.02 , subdivisions 2 to 33, must file a statement of
261.8exemption with the assessor of the assessment district in which the property is located.
261.9(b) A taxpayer claiming an exemption from taxation on property described in section
261.10272.02, subdivision 10
, must file a statement of exemption with the commissioner of
261.11revenue, on or before February 15 of each year for which the taxpayer claims an exemption.
261.12(c) In case of sickness, absence or other disability or for good cause, the assessor
261.13or the commissioner may extend the time for filing the statement of exemption for a
261.14period not to exceed 60 days.
261.15(d) The commissioner of revenue shall prescribe theform and contents content,
261.16format, and manner of the statement of exemption pursuant to section 270C.30, except
261.17that a "law administered by the commissioner" includes the property tax laws.
261.18(e) If a statement is made by electronic means, the taxpayer's signature is defined
261.19pursuant to section 270C.304, except that a "law administered by the commissioner"
261.20includes the property tax laws.
261.21EFFECTIVE DATE.This section is effective the day following final enactment.
261.22 Sec. 20. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:
261.23 Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax
261.24under subdivision 3 shall file a report with the commissioner of revenue annually on or
261.25beforeFebruary 1 January 15 detailing the amount of electricity in kilowatt-hours that
261.26was produced by the wind energy conversion system for the previous calendar year. The
261.27commissioner shall prescribe theform content, format, and manner of the report pursuant
261.28to section 270C.30, except that a "law administered by the commissioner" includes the
261.29property tax laws. The report must contain the information required by the commissioner
261.30to determine the tax due to each county under this section for the current year. If an owner
261.31of a wind energy conversion system subject to taxation under this section fails to file the
261.32report by the due date, the commissioner of revenue shall determine the tax based upon
261.33the nameplate capacity of the system multiplied by a capacity factor of 60 percent.
262.1(b) If a report is made by electronic means, the taxpayer's signature is defined
262.2pursuant to section 270C.304, except that a "law administered by the commissioner"
262.3includes the property tax laws.
262.4(b) (c) On or before February 28, the commissioner of revenue shall notify the owner
262.5of the wind energy conversion systems of the tax due to each county for the current year
262.6and shall certify to the county auditor of each county in which the systems are located the
262.7tax due from each owner for the current year.
262.8EFFECTIVE DATE.This section is effective the day following final enactment,
262.9except that the amendment in paragraph (a) moving the date to file the report is effective
262.10for reports filed in 2017 and thereafter.
262.11 Sec. 21. Minnesota Statutes 2014, section 272.0295, subdivision 4, is amended to read:
262.12 Subd. 4. Reports. An owner of a solar energy generating system subject to tax
262.13under this section shall file a report with the commissioner of revenue annually on or
262.14before January 15 detailing the amount of electricity in megawatt-hours that was produced
262.15by the system in the previous calendar year. The commissioner shall prescribe theform
262.16content, format, and manner of the report pursuant to section 270C.30. The report must
262.17contain the information required by the commissioner to determine the tax due to each
262.18county under this section for the current year. If an owner of a solar energy generating
262.19system subject to taxation under this section fails to file the report by the due date, the
262.20commissioner of revenue shall determine the tax based upon the nameplate capacity of
262.21the system multiplied by a capacity factor of 30 percent.
262.22EFFECTIVE DATE.This section is effective the day following final enactment.
262.23 Sec. 22. Minnesota Statutes 2014, section 272.115, subdivision 2, is amended to read:
262.24 Subd. 2. Form; information required. The certificate of value shall require
262.25such facts and information as may be determined by the commissioner to be reasonably
262.26necessary in the administration of the state education aid formulas. Theform
262.27commissioner shall prescribe the content, format, and manner of the certificate of value
262.28shall be prescribed by the Department of Revenue which shall provide an adequate
262.29supply of forms to each county auditor pursuant to section 270C.30, except that a "law
262.30administered by the commissioner" includes the property tax laws.
262.31EFFECTIVE DATE.This section is effective the day following final enactment.
262.32 Sec. 23. Minnesota Statutes 2014, section 273.124, subdivision 13, is amended to read:
263.1 Subd. 13. Homestead application. (a) A person who meets the homestead
263.2requirements under subdivision 1 must file a homestead application with the county
263.3assessor to initially obtain homestead classification.
263.4 (b)The format and contents of a uniform homestead application shall be prescribed
263.5by the commissioner of revenue. The commissioner shall prescribe the content, format,
263.6and manner of the homestead application required to be filed under this chapter pursuant
263.7to section 270C.30. The application must clearly inform the taxpayer that this application
263.8must be signed by all owners who occupy the property or by the qualifying relative and
263.9returned to the county assessor in order for the property to receive homestead treatment.
263.10 (c) Every property owner applying for homestead classification must furnish to the
263.11county assessor the Social Security number of each occupant who is listed as an owner
263.12of the property on the deed of record, the name and address of each owner who does not
263.13occupy the property, and the name and Social Security number of each owner's spouse who
263.14occupies the property. The application must be signed by each owner who occupies the
263.15property and by each owner's spouse who occupies the property, or, in the case of property
263.16that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
263.17 If a property owner occupies a homestead, the property owner's spouse may not
263.18claim another property as a homestead unless the property owner and the property owner's
263.19spouse file with the assessor an affidavit or other proof required by the assessor stating that
263.20the property qualifies as a homestead under subdivision 1, paragraph (e).
263.21 Owners or spouses occupying residences owned by their spouses and previously
263.22occupied with the other spouse, either of whom fail to include the other spouse's name
263.23and Social Security number on the homestead application or provide the affidavits or
263.24other proof requested, will be deemed to have elected to receive only partial homestead
263.25treatment of their residence. The remainder of the residence will be classified as
263.26nonhomestead residential. When an owner or spouse's name and Social Security number
263.27appear on homestead applications for two separate residences and only one application is
263.28signed, the owner or spouse will be deemed to have elected to homestead the residence for
263.29which the application was signed.
263.30 (d) If residential real estate is occupied and used for purposes of a homestead by a
263.31relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
263.32order for the property to receive homestead status, a homestead application must be filed
263.33with the assessor. The Social Security number of each relative and spouse of a relative
263.34occupying the property shall be required on the homestead application filed under this
263.35subdivision. If a different relative of the owner subsequently occupies the property, the
263.36owner of the property must notify the assessor within 30 days of the change in occupancy.
264.1The Social Security number of a relative or relative's spouse occupying the property
264.2is private data on individuals as defined by section13.02, subdivision 12 , but may be
264.3disclosed to the commissioner of revenue, or, for the purposes of proceeding under the
264.4Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
264.5 (e) The homestead application shall also notify the property owners that if the
264.6property is granted homestead status for any assessment year, that same property shall
264.7remain classified as homestead until the property is sold or transferred to another person,
264.8or the owners, the spouse of the owner, or the relatives no longer use the property as their
264.9homestead. Upon the sale or transfer of the homestead property, a certificate of value must
264.10be timely filed with the county auditor as provided under section272.115 . Failure to
264.11notify the assessor within 30 days that the property has been sold, transferred, or that the
264.12owner, the spouse of the owner, or the relative is no longer occupying the property as a
264.13homestead, shall result in the penalty provided under this subdivision and the property
264.14will lose its current homestead status.
264.15 (f) If a homestead application has not been filed with the county by December 15,
264.16the assessor shall classify the property as nonhomestead for the current assessment year
264.17for taxes payable in the following year, provided that the owner may be entitled to receive
264.18the homestead classification by proper application under section375.192 .
264.19EFFECTIVE DATE.This section is effective the day following final enactment.
264.20 Sec. 24. Minnesota Statutes 2014, section 273.371, is amended to read:
264.21273.371 REPORTS OF UTILITY COMPANIES.
264.22 Subdivision 1. Report required. Every electric light, power, gas, water, express,
264.23stage, and transportationcompany and pipeline company doing business in Minnesota
264.24shall annually file with the commissioner on or before March 31 a report under oath
264.25setting forth the information prescribed by the commissioner to enable the commissioner
264.26to make valuations, recommended valuations, and equalization required under sections
264.27273.33
,
273.35 ,
273.36 ,
273.37 , and
273.3711 . The commissioner shall prescribe the
264.28content, format, and manner of the report pursuant to section 270C.30, except that
264.29a "law administered by the commissioner" includes the property tax laws. If all the
264.30required information is not available on March 31, the company or pipeline shall file the
264.31information that is available on or before March 31, and the balance of the information
264.32as soon as it becomes available. If a report is made by electronic means, the taxpayer's
264.33signature is defined pursuant to section 270C.304, except that a "law administered by the
264.34commissioner" includes the property tax laws.
265.1 Subd. 2. Extension. The commissioner for good cause may extend the time for
265.2filing the report required by subdivision 1. The extensionmay must not exceed 15 days.
265.3 Subd. 3. Reports filed by the commissioner. If a company fails to file a report
265.4required by subdivision 1, the commissioner may, from information in the commissioner's
265.5possession or obtainable by the commissioner, make and file a report for the company or
265.6make the valuations, recommended valuations, and equalizations required under sections
265.7273.33, 273.35 to 273.37, and 273.3711.
265.8EFFECTIVE DATE.This section is effective the day following final enactment.
265.9 Sec. 25. Minnesota Statutes 2014, section 287.2205, is amended to read:
265.10287.2205 TAX-FORFEITED LAND.
265.11 Before a state deed for tax-forfeited land may be issued, the deed tax must be paid
265.12by the purchaser of tax-forfeited land whether the purchase is the result of a public
265.13auction or private sale or a repurchase of tax-forfeited land. State agencies and local
265.14units of government that acquire tax-forfeited land by purchase or any other means are
265.15subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a
265.16governmental subdivision for an authorized public use under section282.01, subdivision
265.171a , for a school forest under section 282.01, subdivision 1a, or for redevelopment purposes
265.18under section282.01, subdivision 1b .
265.19EFFECTIVE DATE.This section is effective the day following final enactment.
265.20 Sec. 26. Minnesota Statutes 2014, section 289A.08, is amended by adding a
265.21subdivision to read:
265.22 Subd. 17. Format. The commissioner shall prescribe the content, format, and
265.23manner of the returns and other documents pursuant to section 270C.30. This does not
265.24authorize the commissioner to require individual income taxpayers to file individual
265.25income tax returns electronically.
265.26EFFECTIVE DATE.This section is effective the day following final enactment.
265.27 Sec. 27. Minnesota Statutes 2014, section 289A.09, subdivision 1, is amended to read:
265.28 Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax
265.29under section290.92, subdivision 2a or 3, and a person required to deduct and withhold
265.30tax under section290.923, subdivision 2 , must file a return with the commissioner for each
265.31quarterly period unless otherwise prescribed by the commissioner.
266.1(b) A person or corporation required to make deposits under section290.9201,
266.2subdivision 8 , must file an entertainer withholding tax return with the commissioner.
266.3(c) A person required to withhold an amount under section290.9705, subdivision 1 ,
266.4must file a return.
266.5(d) A partnership required to deduct and withhold tax under section290.92,
266.6subdivision 4b , must file a return.
266.7(e) An S corporation required to deduct and withhold tax under section290.92,
266.8subdivision 4c , must also file a return.
266.9(f)Returns must be filed in the form and manner, and contain the information
266.10prescribed by the commissioner. The commissioner shall prescribe the content, format,
266.11and manner of the returns pursuant to section 270C.30. Every return for taxes withheld
266.12must be signed by the employer, entertainment entity, contract payor, partnership, or S
266.13corporation, or a designee.
266.14EFFECTIVE DATE.This section is effective the day following final enactment.
266.15 Sec. 28. Minnesota Statutes 2014, section 289A.11, subdivision 1, is amended to read:
266.16 Subdivision 1. Return required. (a) Except as provided in section289A.18,
266.17subdivision 4 , for the month in which taxes imposed by chapter 297A are payable, or for
266.18which a return is due, a return for the preceding reporting period must be filed with the
266.19commissionerin the form and manner the commissioner prescribes. The commissioner
266.20shall prescribe the content, format, and manner of the returns pursuant to section 270C.30.
266.21A person making sales at retail at two or more places of business may file a consolidated
266.22return subject to rules prescribed by the commissioner. In computing the dollar amount of
266.23items on the return, the amounts are rounded off to the nearest whole dollar, disregarding
266.24amounts less than 50 cents and increasing amounts of 50 cents to 99 cents to the next
266.25highest dollar.
266.26(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax
266.27permit under chapter 297A and who makes annual purchases, for use in a trade or business,
266.28of less than $18,500, or a person who is not required to hold a sales tax permit and who
266.29makes purchases for personal use, that are subject to the use tax imposed by section
266.30297A.63
, may file an annual use tax return on a form prescribed by the commissioner.
266.31The commissioner shall prescribe the content, format, and manner of the return pursuant
266.32to section 270C.30. If a person who qualifies for an annual use tax reporting period is
266.33required to obtain a sales tax permit or makes use tax purchases, for use in a trade or
266.34business, in excess of $18,500 during the calendar year, the reporting period must be
267.1considered ended at the end of the month in which the permit is applied for or the purchase
267.2in excess of $18,500 is made and a return must be filed for the preceding reporting period.
267.3(c) Notwithstandingparagraph paragraphs (a) and (b), a person prohibited by the
267.4person's religious beliefs from using electronics shall be allowed to file by mail, without
267.5any additional fees. The filer must notify the commissioner of revenue of the intent to file
267.6by mail on a form prescribed by the commissioner. A return filed under this paragraph
267.7must be postmarked no later than the day the return is due in order to be considered filed
267.8on a timely basis.
267.9EFFECTIVE DATE.This section is effective the day following final enactment.
267.10 Sec. 29. Minnesota Statutes 2014, section 289A.18, subdivision 1, is amended to read:
267.11 Subdivision 1. Individual income, fiduciary income, corporate franchise, and
267.12entertainment taxes; partnership and S corporation returns; information returns;
267.13mining company returns. The returns required to be made under sections289A.08 and
267.14289A.12
must be filed at the following times:
267.15 (1) returns made on the basis of the calendar year must be filed on April 15 following
267.16the close of the calendar year, except that returns of corporations and partnerships must be
267.17filed on the due date for filing the federal income tax return;
267.18 (2) returns made on the basis of the fiscal year must be filed on the 15th day of the
267.19fourth month following the close of the fiscal year, except that returns of corporations and
267.20partnerships must be filed on the due date for filing the federal income tax return;
267.21 (3) returns for a fractional part of a year must be filed on the due date for filing the
267.22federal income tax return;
267.23 (4) in the case of a final return of a decedent for a fractional part of a year, the return
267.24must be filed on the 15th day of the fourth month following the close of the 12-month
267.25period that began with the first day of that fractional part of a year;
267.26 (5) in the case of the return of a cooperative association, returns must be filed on or
267.27before the 15th day of the ninth month following the close of the taxable year;
267.28 (6) if a corporation has been divested from a unitary group and files a return for
267.29a fractional part of a year in which it was a member of a unitary business that files a
267.30combined report under section290.17, subdivision 4 , the divested corporation's return
267.31must be filed on the 15th day of the third month following the close of the common
267.32accounting period that includes the fractional year;
267.33 (7) returns of entertainment entities must be filed on April 15 following the close of
267.34the calendar year;
268.1 (8) returns required to be filed under section289A.08, subdivision 4 , must be filed
268.2on the 15th day of the fifth month following the close of the taxable year;
268.3 (9) returns of mining companies must be filed on May 1 following the close of the
268.4calendar year; and
268.5 (10) returns required to be filed with the commissioner under section289A.12,
268.6subdivision 2 , 4 to 10, or 16 must be filed within 30 days after being demanded by the
268.7commissioner.
268.8EFFECTIVE DATE.This section is effective the day following final enactment.
268.9 Sec. 30. Minnesota Statutes 2014, section 289A.37, subdivision 2, is amended to read:
268.10 Subd. 2. Erroneous refunds.An erroneous refund is considered an underpayment
268.11of tax on the date made. An assessment of a deficiency arising out of an erroneous refund
268.12may be made at any time within two years from the making of the refund. If part of the
268.13refund was induced by fraud or misrepresentation of a material fact, the assessment may
268.14be made at any time. (a) Except as provided in paragraph (b), an erroneous refund occurs
268.15when the commissioner issues a payment to a person that exceeds the amount the person
268.16is entitled to receive under law. An erroneous refund is considered an underpayment
268.17of tax on the date issued.
268.18(b) To the extent that the amount paid does not exceed the amount claimed by the
268.19taxpayer, an erroneous refund does not include the following:
268.20(1) any amount of a refund or credit paid pursuant to a claim for refund filed by
268.21a taxpayer, including but not limited to refunds of claims made under section 290.06,
268.22subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
268.23290.0681; or 290.0692; or chapter 290A; or
268.24(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed
268.25by a taxpayer.
268.26(c) The commissioner may make an assessment to recover an erroneous refund at
268.27any time within two years from the issuance of the erroneous refund. If all or part of
268.28the erroneous refund was induced by fraud or misrepresentation of a material fact, the
268.29assessment may be made at any time.
268.30(d) Assessments of amounts that are not erroneous refunds under paragraph (b)
268.31must be conducted under section 289A.38.
268.32EFFECTIVE DATE.This section is effective the day following final enactment and
268.33applies retroactively to all refunds issued on, before, or after that date, but does not apply to
268.34the refunds at issue in Connexus Energy et al. v. Commissioner of Revenue, 868 N.W.2d
269.1234 (Minn. 2015). Notwithstanding any law to the contrary, the changes in this section do
269.2not invalidate any assessments made by the commissioner prior to this effective date.
269.3 Sec. 31. Minnesota Statutes 2014, section 289A.50, subdivision 7, is amended to read:
269.4 Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the
269.5refund claim is denied in whole or in part, the taxpayer may:
269.6(1) file an administrative appeal as provided in section270C.35 , or an appeal
269.7with the Tax Court, within 60 days afterissuance the notice date of the commissioner's
269.8notice of denial; or
269.9(2) file an action in the district court to recover the refund.
269.10(b) An action in the district court on a denied claim for refund must be brought
269.11within 18 months of the notice date of the denial of the claim by the commissioner. For
269.12the purposes of this section, "notice date" is defined in section 270C.35, subdivision 3.
269.13(c) No action in the district court or the Tax Court shall be brought within six months
269.14of the filing of the refund claim unless the commissioner denies the claim within that period.
269.15(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
269.16of the claim, the taxpayer may bring an action in the district court or the Tax Court at any
269.17time after the expiration of six months from the time the claim was filed.
269.18(e) The commissioner and the taxpayer may agree to extend the period for bringing
269.19an action in the district court.
269.20(f) An action for refund of tax by the taxpayer must be brought in the district court
269.21of the district in which lies the county of the taxpayer's residence or principal place of
269.22business. In the case of an estate or trust, the action must be brought at the principal place
269.23of its administration. Any action may be brought in the district court for Ramsey County.
269.24EFFECTIVE DATE.This section is effective for claims for refund denied after
269.25December 31, 2016.
269.26 Sec. 32. [290B.11] FORMS.
269.27The commissioner shall prescribe the content, format, and manner of all forms and
269.28other documents required to be filed under this chapter pursuant to section 270C.30.
269.29EFFECTIVE DATE.This section is effective the day following final enactment.
269.30 Sec. 33. [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.
270.1On request of the commissioner, the commissioner of natural resources must
270.2annually provide verification that the claimant has a current forest management plan on
270.3file with the Department of Natural Resources.
270.4EFFECTIVE DATE.This section is effective for certifications filed after July
270.51, 2017.
270.6 Sec. 34. [293.15] FORMS.
270.7The commissioner shall prescribe the content, format, and manner of all forms and
270.8other documents required to be filed under this chapter pursuant to section 270C.30.
270.9EFFECTIVE DATE.This section is effective the day following final enactment.
270.10 Sec. 35. Minnesota Statutes 2014, section 295.55, subdivision 6, is amended to read:
270.11 Subd. 6. Form of returns.The estimated payments and annual return must contain
270.12the information and be in the form prescribed by the commissioner. The commissioner
270.13shall prescribe the content, format, and manner of the estimated payment forms and annual
270.14return pursuant to section 270C.30.
270.15EFFECTIVE DATE.This section is effective the day following final enactment.
270.16 Sec. 36. Minnesota Statutes 2014, section 296A.02, is amended by adding a
270.17subdivision to read:
270.18 Subd. 5. Forms. The commissioner shall prescribe the content, format, and manner
270.19of all forms and other documents required to be filed under this chapter pursuant to section
270.20270C.30.
270.21EFFECTIVE DATE.This section is effective the day following final enactment.
270.22 Sec. 37. Minnesota Statutes 2014, section 296A.22, subdivision 9, is amended to read:
270.23 Subd. 9. Abatement of penalty. (a) The commissioner may by written order
270.24abate any penalty imposed under this section, if in the commissioner's opinion there is
270.25reasonable cause to do so.
270.26(b) A request for abatement of penalty must be filed with the commissioner within
270.2760 days of the notice date of thenotice stating that a penalty has been imposed was mailed
270.28to the taxpayer's last known address. For purposes of this section, the term "notice date"
270.29means the notice date designated by the commissioner on the order or other notice that a
270.30penalty has been imposed.
271.1(c) If the commissioner issues an order denying a request for abatement of penalty,
271.2the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to
271.3Tax Court as provided in section271.06 . If the commissioner does not issue an order on
271.4the abatement request within 60 days from the date the request is received, the taxpayer
271.5may appeal to Tax Court as provided in section271.06 .
271.6EFFECTIVE DATE.This section is effective for orders and notices dated after
271.7December 31, 2016.
271.8 Sec. 38. Minnesota Statutes 2014, section 296A.26, is amended to read:
271.9296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.
271.10In lieu of an administrative appeal under section270C.35 , any person aggrieved by
271.11an order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
271.1260 days from the notice date ofthe notice of the order, appeal to the Tax Court in the manner
271.13provided under section271.06 . For purposes of this section, the term "notice date" means
271.14the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.
271.15EFFECTIVE DATE.This section is effective for orders dated after December
271.1631, 2016.
271.17 Sec. 39. Minnesota Statutes 2014, section 297D.02, is amended to read:
271.18297D.02 ADMINISTRATION.
271.19The commissioner of revenue shall administer this chapter. The commissioner shall
271.20prescribe the content, format, and manner of all forms and other documents required to be
271.21filed under this chapter pursuant to section 270C.30. Payments required by this chapter
271.22must be made to the commissioner on the form provided by the commissioner. Tax obligors
271.23are not required to give their name, address, Social Security number, or other identifying
271.24information on the form. The commissioner shall collect all taxes under this chapter.
271.25EFFECTIVE DATE.This section is effective the day following final enactment.
271.26 Sec. 40. Minnesota Statutes 2014, section 297E.02, subdivision 3, is amended to read:
271.27 Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due
271.28and payable to the commissioner when the gambling tax return is required to be filed.
271.29Distributors must file their monthly sales figures with the commissioner on a form
271.30prescribed by the commissioner. Returns covering the taxes imposed under this section
271.31must be filed with the commissioner on or before the 20th day of the month following the
272.1close of the previous calendar month.The commissioner may require that the returns be
272.2filed via magnetic media or electronic data transfer. The commissioner shall prescribe the
272.3content, format, and manner of returns or other documents pursuant to section 270C.30.
272.4The proceeds, along with the revenue received from all license fees and other fees under
272.5sections349.11 to
349.191 ,
349.211 , and
349.213 , must be paid to the commissioner of
272.6management and budget for deposit in the general fund.
272.7(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by
272.8the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards
272.9by the organization is exempt from taxes imposed by chapter 297A and is exempt from all
272.10local taxes and license fees except a fee authorized under section349.16, subdivision 8 .
272.11(c) One-half of one percent of the revenue deposited in the general fund under
272.12paragraph (a), is appropriated to the commissioner of human services for the compulsive
272.13gambling treatment program established under section245.98 . One-half of one percent
272.14of the revenue deposited in the general fund under paragraph (a), is appropriated to
272.15the commissioner of human services for a grant to the state affiliate recognized by
272.16the National Council on Problem Gambling to increase public awareness of problem
272.17gambling, education and training for individuals and organizations providing effective
272.18treatment services to problem gamblers and their families, and research relating to
272.19problem gambling. Money appropriated by this paragraph must supplement and must not
272.20replace existing state funding for these programs.
272.21EFFECTIVE DATE.This section is effective the day following final enactment.
272.22 Sec. 41. Minnesota Statutes 2014, section 297E.04, subdivision 1, is amended to read:
272.23 Subdivision 1. Reports of sales. A manufacturer who sells gambling product for
272.24use or resale in this state, or for receipt by a person or entity in this state, shall file with the
272.25commissioner, on a form prescribed by the commissioner, a report of gambling product
272.26sold to any person in the state, including the established governing body of an Indian tribe
272.27recognized by the United States Department of the Interior. The report must be filed
272.28monthly on or before the 20th day of the month succeeding the month in which the sale
272.29was made.The commissioner may require that the report be submitted via magnetic
272.30media or electronic data transfer. The commissioner shall prescribe the content, format,
272.31and manner of returns or other documents pursuant to section 270C.30. The commissioner
272.32may inspect the premises, books, records, and inventory of a manufacturer without notice
272.33during the normal business hours of the manufacturer. A person violating this section is
272.34guilty of a misdemeanor.
273.1EFFECTIVE DATE.This section is effective the day following final enactment.
273.2 Sec. 42. Minnesota Statutes 2014, section 297E.05, subdivision 4, is amended to read:
273.3 Subd. 4. Reports. A distributor shall report monthly to the commissioner, on a form
273.4the commissioner prescribes, its sales of each type of gambling product. This report must
273.5be filed monthly on or before the 20th day of the month succeeding the month in which
273.6the sale was made.The commissioner may require that a distributor submit the monthly
273.7report and invoices required in this subdivision via magnetic media or electronic data
273.8transfer. The commissioner shall prescribe the content, format, and manner of returns or
273.9other documents pursuant to section 270C.30.
273.10EFFECTIVE DATE.This section is effective the day following final enactment.
273.11 Sec. 43. Minnesota Statutes 2014, section 297E.06, subdivision 1, is amended to read:
273.12 Subdivision 1. Reports. An organization must file with the commissioner, on a form
273.13prescribed by the commissioner, a report showing all gambling activity conducted by that
273.14organization for each month. Gambling activity includes all gross receipts, prizes, all
273.15gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
273.16purpose and board-approved expenditures. The report must be filed with the commissioner
273.17on or before the 20th day of the month following the month in which the gambling activity
273.18takes place.The commissioner may require that the reports be filed via magnetic media or
273.19electronic data transfer. The commissioner shall prescribe the content, format, and manner
273.20of returns or other documents pursuant to section 270C.30.
273.21EFFECTIVE DATE.This section is effective the day following final enactment.
273.22 Sec. 44. Minnesota Statutes 2014, section 297F.09, subdivision 1, is amended to read:
273.23 Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day
273.24of each calendar month, a distributor with a place of business in this state shall file a
273.25return with the commissioner showing the quantity of cigarettes manufactured or brought
273.26in from outside the state or purchased during the preceding calendar month and the
273.27quantity of cigarettes sold or otherwise disposed of in this state and outside this state
273.28during that month. A licensed distributor outside this state shall in like manner file a
273.29return showing the quantity of cigarettes shipped or transported into this state during the
273.30preceding calendar month.Returns must be made in the form and manner prescribed by
273.31The commissioner shall prescribe the content, format, and manner of returns pursuant to
273.32section 270C.30, and the returns must contain any other information required by the
274.1commissioner. The return must be accompanied by a remittance for the full unpaid tax
274.2liability shown by it. For distributors subject to the accelerated tax payment requirements
274.3in subdivision 10, the return for the May liability is due two business days before June 30th
274.4of the year and the return for the June liability is due on or before August 18th of the year.
274.5EFFECTIVE DATE.This section is effective the day following final enactment.
274.6 Sec. 45. Minnesota Statutes 2014, section 297F.23, is amended to read:
274.7297F.23 JUDICIAL REVIEW.
274.8In lieu of an administrative appeal under section270C.35 , a person aggrieved by an
274.9order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60
274.10days from the notice date ofthe notice of the order, appeal to the Tax Court in the manner
274.11provided under section271.06 . For purposes of this section, the term "notice date" means
274.12the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.
274.13EFFECTIVE DATE.This section is effective for orders dated after December
274.1431, 2016.
274.15 Sec. 46. Minnesota Statutes 2014, section 297G.09, subdivision 1, is amended to read:
274.16 Subdivision 1. Monthly returns; manufacturers, wholesalers, brewers, or
274.17importers. On or before the 18th day of each calendar month following the month in
274.18which a licensed manufacturer or wholesaler first sells wine and distilled spirits within
274.19the state, or a brewer or importer first sells or imports fermented malt beverages, or a
274.20wholesaler knowingly acquires title to or possession of untaxed fermented malt beverages,
274.21the licensed manufacturer, wholesaler, brewer, or importer liable for the excise tax must
274.22file a return with the commissioner, and in addition must keep records and render reports
274.23as required by the commissioner.Returns must be made in a form and manner prescribed
274.24by the commissioner, and The commissioner shall prescribe the content, format, and
274.25manner of returns pursuant to section 270C.30. The returns must contain any other
274.26information required by the commissioner. Returns must be accompanied by a remittance
274.27for the full unpaid tax liability. Returns must be filed regardless of whether a tax is due.
274.28EFFECTIVE DATE.This section is effective the day following final enactment.
274.29 Sec. 47. Minnesota Statutes 2014, section 297G.22, is amended to read:
274.30297G.22 JUDICIAL REVIEW.
275.1In lieu of an administrative appeal under this chapter, a person aggrieved by an order
275.2of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days
275.3fromthe date of the notice date of the order, appeal to the Tax Court in the manner provided
275.4under section271.06 . For purposes of this section, the term "notice date" means the notice
275.5date designated by the commissioner on the order fixing a tax, penalty, or interest.
275.6EFFECTIVE DATE.This section is effective for orders dated after December
275.731, 2016.
275.8 Sec. 48. Minnesota Statutes 2014, section 297I.30, is amended by adding a subdivision
275.9to read:
275.10 Subd. 11. Format. The commissioner shall prescribe the content, format, and
275.11manner of returns or other documents pursuant to section 270C.30.
275.12EFFECTIVE DATE.This section is effective the day following final enactment.
275.13 Sec. 49. Minnesota Statutes 2014, section 297I.60, subdivision 2, is amended to read:
275.14 Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in
275.15whole or in part, the taxpayer may contest the denial by:
275.16(1) filing an administrative appeal with the commissioner under section270C.35 ;
275.17(2) filing an appeal in Tax Court within 60 days of the notice date of thenotice of
275.18denial; or
275.19(3) filing an action in the district court to recover the refund.
275.20(b) An action in the district court must be brought within 18 monthsfollowing of the
275.21notice date of thenotice of denial. For purposes of this section, "notice date" is defined in
275.22section 270C.35, subdivision 3. An action for refund of tax or surcharge must be brought
275.23in the district court of the district in which lies the taxpayer's principal place of business or
275.24in the District Court for Ramsey County. If a taxpayer files a claim for refund and the
275.25commissioner has not issued a denial of the claim, the taxpayer may bring an action in
275.26the district court or the Tax Court at any time after the expiration of six months from the
275.27time the claim was filed.
275.28EFFECTIVE DATE.This section is effective for claims for refund denied after
275.29December 31, 2016.
275.30 Sec. 50. Minnesota Statutes 2014, section 469.319, subdivision 5, is amended to read:
275.31 Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a
275.32repayment required under subdivision 1, if the commissioner, in consultation with
276.1the commissioner of employment and economic development and appropriate officials
276.2from the local government units in which the qualified business is located, determines
276.3that requiring repayment of the tax is not in the best interest of the state or the local
276.4government units and the business ceased operating as a result of circumstances beyond
276.5its control including, but not limited to:
276.6 (1) a natural disaster;
276.7 (2) unforeseen industry trends; or
276.8 (3) loss of a major supplier or customer.
276.9 (b)(1) The commissioner shall waive repayment required under subdivision 1a if
276.10the commissioner has waived repayment by the operating business under subdivision 1,
276.11unless the person that received benefits without having to operate a business in the zone
276.12was a contributing factor in the qualified business becoming subject to repayment under
276.13subdivision 1;
276.14 (2) the commissioner shall waive the repayment required under subdivision 1a, even
276.15if the repayment has not been waived for the operating business if:
276.16 (i) the person that received benefits without having to operate a business in the zone
276.17and the business that operated in the zone are not related parties as defined in section
276.18267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and
276.19 (ii) actions of the person were not a contributing factor in the qualified business
276.20becoming subject to repayment under subdivision 1.
276.21(c) Requests for waiver must be made no later than 60 days after the earlier of the
276.22notice date of an order issued under subdivision 4, paragraph (d), or the date of a tax
276.23statement issued under subdivision 4, paragraph (c). For purposes of this section, the term
276.24"notice date" means the notice date designated by the commissioner on the order.
276.25EFFECTIVE DATE.This section is effective for orders of the commissioner of
276.26revenue dated after December 31, 2016.
276.27 Sec. 51. REPEALER.
276.28Minnesota Statutes 2014, section 290C.06, is repealed.
276.29EFFECTIVE DATE.This section is effective the day following final enactment.
"276.30Delete the title and insert:
276.32relating to financing of state and local government; making changes to property,
276.33individual income, corporate franchise, estate, sales and use, excise, petroleum
276.34and other fuel, gambling, tobacco, special, mineral, local, and other taxes and
276.35tax-related provisions; modifying local government aids and credits; amending
276.36county levy authority; exempting certain electric generation facility property and
277.1soccer stadium property from property tax; extending homestead value exclusion
277.2for spouses of qualifying deceased veterans; amending the state general levy;
277.3abating local property taxes in the Lake Mille Lacs area; establishing school
277.4building bond agricultural credit; establishing reimbursement for certain
277.5out-of-home placements of Indian children; establishing riparian protection
277.6aid; forgiving certain aid penalties; providing for federal tax conformity;
277.7modifying income tax credits; providing income tax credits; changing income
277.8tax modifications; modifying residency rules; modifying sales and use tax
277.9definitions; modifying sales and use tax collection requirements; modifying sales
277.10and use tax exemptions; providing for reimbursement from the Minnesota Sports
277.11Facilities Authority of certain sales and use taxes; allocating certain sales and use
277.12tax revenues; modifying and allowing certain local sales and use taxes; modifying
277.13provisions for gasoline used as a substitute for aviation gasoline; providing
277.14tax rates on paper pull-tabs sold at bingo halls; providing definitions and a
277.15tax rate for vapor products; modifying taconite tax distributions and deposits;
277.16providing for local development projects; modifying public finance provisions;
277.17transferring approval authority from the Iron Range Resources and Rehabilitation
277.18Board to the commissioner of Iron Range resources and rehabilitation;
277.19requiring the commissioner of Iron Range resources and rehabilitation to seek
277.20a recommendation from the board in certain circumstances; providing for
277.21transfer of ownership, eligibility, certification, and notification requirements for
277.22enrollment of land in the Sustainable Forest Incentive Act; modifying the budget
277.23reserve; providing a new markets grant program; providing a tax time savings
277.24grant program; providing civil and criminal penalties for sales suppression
277.25devices; allocating additional amounts to the border city enterprise zones; making
277.26clarifying and conforming changes; removing obsolete language; requiring
277.27reports; appropriating money;amending Minnesota Statutes 2014, sections 13.51,
277.28subdivision 2; 15.38, subdivision 7; 69.021, subdivision 5; 116J.424; 136A.129,
277.29subdivision 3; 138.053; 216B.161, subdivision 1; 270.071, subdivisions 2, 7, 8,
277.30by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision;
277.31270.12, by adding a subdivision; 270.82, subdivision 1; 270A.03, subdivision
277.325; 270B.14, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34,
277.33subdivision 2; 270C.347, subdivision 1; 270C.35, subdivision 3, by adding
277.34a subdivision; 270C.38, subdivision 1; 270C.445, by adding a subdivision;
277.35270C.446, subdivision 5; 270C.72, subdivision 4; 270C.89, subdivision 1;
277.36271.06, subdivisions 2, 7; 271.08, subdivision 1; 271.21, subdivision 2; 272.02,
277.37subdivisions 9, 10, by adding subdivisions; 272.0211, subdivision 1; 272.025,
277.38subdivision 1; 272.029, subdivisions 2, 4, by adding a subdivision; 272.0295,
277.39subdivision 4; 272.115, subdivision 2; 272.162; 273.032; 273.061, subdivision
277.407; 273.08; 273.121, by adding a subdivision; 273.124, subdivision 13; 273.13,
277.41subdivisions 22, 34; 273.1392; 273.1393; 273.33, subdivisions 1, 2; 273.371;
277.42273.372, subdivisions 1, 2, 4, by adding subdivisions; 274.01, subdivision 1;
277.43274.13, subdivision 1; 274.135, subdivision 3; 275.025, subdivisions 1, 2,
277.444; 275.065, subdivisions 1, 3; 275.066; 275.07, subdivisions 1, 2; 275.08,
277.45subdivision 1b; 275.62, subdivision 2; 276.04, subdivision 2; 276.11, subdivision
277.461; 276.111; 276A.01, subdivisions 8, 17; 278.01, subdivision 1; 278.12; 278.14,
277.47subdivision 1; 279.01, subdivisions 1, 2, 3; 279.03, subdivision 2; 279.37,
277.48subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261, subdivision 2; 282.38,
277.49subdivision 1; 287.2205; 289A.08, subdivisions 11, 16, by adding a subdivision;
277.50289A.09, subdivisions 1, 2; 289A.11, subdivision 1; 289A.12, subdivision
277.5114; 289A.18, subdivision 1, by adding a subdivision; 289A.20, subdivision
277.522; 289A.31, subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38,
277.53subdivision 6; 289A.50, subdivision 7; 289A.60, subdivision 28, by adding a
277.54subdivision; 290.01, subdivisions 7, 19a, 19b, 19c, 19d; 290.06, subdivision 22;
277.55290.067, subdivisions 1, 2b; 290.0671, subdivision 7; 290.0672, subdivision
277.561; 290.0674, subdivision 2, by adding a subdivision; 290.0677, subdivision
277.571a; 290.068, subdivision 2; 290.091, subdivisions 2, 3; 290.0921, subdivision
277.583; 290.0922, subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1;
278.1290A.03, subdivision 13; 290A.19; 290C.01; 290C.02, subdivisions 1, 3, 6;
278.2290C.03; 290C.04; 290C.05; 290C.055; 290C.07; 290C.08, subdivision 1;
278.3290C.10; 290C.11; 290C.13, subdivision 6; 291.016, subdivisions 2, 3; 291.03,
278.4subdivisions 9, 11, by adding a subdivision; 291.031; 295.54, subdivision 2;
278.5295.55, subdivision 6; 296A.01, subdivisions 12, 33, 42, by adding subdivisions;
278.6296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08,
278.7subdivision 2; 296A.09, subdivisions 1, 3, 5, 6; 296A.15, subdivisions 1, 4;
278.8296A.17, subdivisions 1, 2, 3; 296A.18, subdivisions 1, 8; 296A.19, subdivision
278.91; 296A.22, subdivision 9; 296A.26; 297A.61, subdivisions 3, 10; 297A.66,
278.10subdivisions 1, 2, 4, by adding a subdivision; 297A.67, subdivision 7a, by adding
278.11subdivisions; 297A.68, subdivision 9; 297A.70, subdivision 14; 297A.71, by
278.12adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.815, subdivision 3;
278.13297A.82, subdivisions 4, 4a; 297D.02; 297E.02, subdivisions 1, 3, 7; 297E.04,
278.14subdivision 1; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.01,
278.15subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by adding
278.16subdivisions; 297F.09, subdivision 1; 297F.23; 297G.09, subdivision 1; 297G.22;
278.17297H.04, subdivision 2; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10,
278.18subdivisions 1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2;
278.19298.001, subdivision 8; 298.01, subdivisions 3b, 4c; 298.22, subdivisions 1, 1a,
278.205a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5,
278.216; 298.223, subdivisions 1, 2; 298.227; 298.24, by adding a subdivision; 298.28,
278.22subdivisions 3, 5, 7a, 9d; 298.292, subdivision 2; 298.294; 298.296, subdivisions
278.231, 2, 4; 298.2961, subdivisions 2, 4; 298.298; 298.46, subdivision 2; 349.12, by
278.24adding a subdivision; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32;
278.25412.301; 469.034, subdivision 2; 469.101, subdivision 1; 469.169, by adding a
278.26subdivision; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.319,
278.27subdivision 5; 473.39, by adding a subdivision; 473H.09; 475.58, subdivision
278.283b; 475.60, subdivision 2; 477A.013, by adding a subdivision; 477A.017,
278.29subdivisions 2, 3; 477A.03, subdivision 2b; 477A.19, by adding subdivisions;
278.30559.202, subdivision 2; 609.5316, subdivision 3; Minnesota Statutes 2015
278.31Supplement, sections 16A.152, subdivision 2; 289A.02, subdivision 7; 290.01,
278.32subdivisions 19, 31; 290.0671, subdivision 1; 290A.03, subdivision 15; 291.005,
278.33subdivision 1; 297E.02, subdivision 6; 477A.015; 477A.03, subdivision 2a; Laws
278.341980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws
278.351988, chapter 645, section 3, as amended; Laws 1991, chapter 291, article 8,
278.36section 27, subdivisions 3, as amended, 4, as amended, 5, 6; Laws 1996, chapter
278.37471, article 2, section 29, subdivision 4, as amended; article 3, section 51; Laws
278.381999, chapter 243, article 4, section 18, subdivision 1, as amended; Laws 2001,
278.39First Special Session chapter 5, article 3, section 86; Laws 2008, chapter 154,
278.40article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section 20;
278.41Laws 2009, chapter 88, article 2, section 46, subdivisions 1, as amended, 2, 3, as
278.42amended, 4, 5; article 5, section 17, as amended; Laws 2014, chapter 308, article
278.431, section 14, subdivision 2; article 6, section 9; article 9, section 94; proposing
278.44coding for new law in Minnesota Statutes, chapters 103C; 116J; 216B; 270C;
278.45273; 290; 290B; 290C; 293; 477A; 609; repealing Minnesota Statutes 2014,
278.46sections 272.02, subdivision 23; 281.22; 290.067, subdivisions 2, 2a; 290C.02,
278.47subdivisions 5, 9; 290C.06; 297F.05, subdivision 1a; 477A.20; Minnesota Rules,
278.48parts 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3."
1.3relating to financing and operation of state and local government; making
1.4changes to individual income, corporate franchise, property, sales and use,
1.5excise, estate, mineral, tobacco, gambling, special, local, and other taxes and
1.6tax-related provisions; providing for long-term care savings plans; modifying
1.7business income tax credits; modifying income tax subtractions and additions;
1.8modifying the definition of resident for income tax purposes; modifying
1.9the dependent care credit, education credit, and research credit; providing
1.10credits for MNsure premium payments, attaining a master's degree, student
1.11loan payments, college savings plans, and job training centers; modifying
1.12reciprocity provisions; providing an additional personal and dependent
1.13exemption; allowing a reverse referendum for property tax levies under certain
1.14circumstances; modifying dates for local referenda related to spending; changing
1.15proposed levy certification dates for special taxing districts; modifying general
1.16property tax provisions; providing for joint county and township assessment
1.17agreements; modifying the definition of agricultural homestead; modifying
1.18property classification definitions; permanently extending the market value
1.19exclusion for surviving spouses of deceased service members and permanently
1.20disabled veterans; modifying provisions for appeals and equalizations courses;
1.21providing a tax credit for overvalued property; modifying and phasing out the
1.22state general levy; modifying proposed levy provisions; modifying due dates
1.23for property taxes; changing withdrawal procedures for the Sustainable Forest
1.24Incentive Program; authorizing valuation exclusion for certain improvements
1.25to homestead and commercial-industrial property; providing an increased estate
1.26tax exemption amount and other estate tax provisions; providing for certain
1.27economic development projects; providing for the Minnesota New Markets Jobs
1.28Act; restricting expenditures and other powers related to certain rail projects;
1.29providing for additional border city zone allocations; modifying general tax
1.30increment financing provisions; modifying provisions for the Destination Medical
1.31Center; modifying general and local sales and use tax provisions; modifying sales
1.32tax definitions and refunds related to petroleum and special fuel, durable medical
1.33equipment, instructional materials, propane tanks, bullion, capital equipment,
1.34and nonprofit groups; providing for a vendor allowance; providing exemptions
1.35for animal shelters, city celebrations, BMX tracks, and certain building and
1.36construction materials; repealing the tax on digital products; providing a separate
1.37rate for certain modular housing; modifying gambling taxes; providing a
1.38definition and rate of tax for vapor products under the tobacco tax; modifying
1.39cigarette stamp provisions; modifying rates for pull tabs sold at bingo halls;
1.40modifying miscellaneous tax provisions; modifying sales tax deposits, accounts,
1.41and provisions for transportation purposes; modifying local government aids
1.42and credits; providing for a school building bond agricultural credit; modifying
1.43assessor accreditation; accelerating the repeal of MinnesotaCare provider taxes;
2.1creating a county program aid working group; establishing trust fund accounts;
2.2providing trust fund payments to counties; modifying provisions related to
2.3payments in lieu of taxes for natural resources land; repealing the political
2.4contribution refund; making various conforming and technical changes; requiring
2.5reports; appropriating money;amending Minnesota Statutes 2014, sections
2.616A.726; 40A.18, subdivision 2; 62V.05, subdivision 5; 97A.055, subdivision
2.72; 97A.056, subdivision 1a, by adding subdivisions; 116J.8737, subdivisions 5,
2.812; 116P.02, subdivision 1, by adding a subdivision; 123B.63, subdivision 3;
2.9126C.17, subdivision 9; 205.10, subdivision 1; 205A.05, subdivision 1; 216B.46;
2.10237.19; 270A.03, subdivision 7; 270B.14, subdivision 17; 270C.13, subdivision
2.111; 270C.9901; 273.061, subdivision 4; 273.072, by adding a subdivision;
2.12273.124, subdivision 14; 273.13, subdivisions 23, 25, 34; 274.014, subdivision
2.132; 275.025; 275.065, subdivisions 1, 3; 275.07, subdivisions 1, 2; 275.08,
2.14subdivision 1b; 275.60; 276.04, subdivisions 1, 2; 278.12; 279.01, subdivisions
2.151, 3; 279.37, subdivision 2; 282.01, subdivision 4; 282.261, subdivision 2;
2.16289A.02, subdivision 7, as amended; 289A.10, subdivision 1; 289A.12, by
2.17adding a subdivision; 289A.20, subdivision 4; 289A.50, subdivision 1; 290.01,
2.18subdivisions 6, 7, 19, as amended, 19a, 19b, 19d, 29, 31, as amended; 290.06,
2.19by adding subdivisions; 290.067, subdivision 1; 290.0671, subdivisions 1, 6a;
2.20290.0672, subdivision 2; 290.0674, subdivisions 1, 2, by adding a subdivision;
2.21290.0677, subdivision 2; 290.068, subdivisions 1, 3, 6a, by adding a subdivision;
2.22290.081; 290.091, subdivision 2; 290.191, subdivision 5; 290A.03, subdivision
2.2315, as amended; 290C.10; 291.005, subdivision 1, as amended; 291.016,
2.24subdivision 3; 291.03, subdivisions 1, 1d; 296A.01, subdivision 12; 296A.08,
2.25subdivision 2; 296A.16, subdivision 2; 297A.61, subdivisions 3, 4, 38; 297A.62,
2.26subdivision 3; 297A.668, subdivisions 1, 2, 6a, 7; 297A.669, subdivision 14a;
2.27297A.67, subdivisions 7a, 13a, by adding subdivisions; 297A.68, subdivisions
2.285, 19; 297A.70, subdivisions 4, 10, 14, by adding subdivisions; 297A.71, by
2.29adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.77, subdivision
2.303; 297A.815, subdivision 3; 297A.94; 297A.992, subdivisions 1, 6, 6a, by
2.31adding a subdivision; 297A.994, subdivision 4; 297E.02, subdivisions 1, 6;
2.32297F.01, subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by
2.33adding subdivisions; 297F.06, subdivisions 1, 4; 297F.08, subdivisions 5, 7, 8;
2.34297F.09, subdivision 1; 297I.20, by adding a subdivision; 298.24, subdivision
2.351; 309.53, subdivision 3; 345.42, by adding a subdivision; 349.12, by adding a
2.36subdivision; 412.221, subdivision 2; 412.301; 426.19, subdivision 2; 447.045,
2.37subdivisions 2, 3, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision 1;
2.38469.053, subdivision 5; 469.0724; 469.107, subdivision 2; 469.169, by adding
2.39a subdivision; 469.174, subdivisions 12, 14; 469.175, subdivision 3; 469.176,
2.40subdivisions 4, 4c; 469.1761, by adding a subdivision; 469.1763, subdivisions 1,
2.412, 3; 469.178, subdivision 7; 469.190, subdivisions 1, 5; 469.40, subdivision 11,
2.42as amended; 469.43, by adding a subdivision; 469.45, subdivisions 1, 2; 469.47,
2.43subdivision 4, as amended; 471.57, subdivision 3; 471.571, subdivision 3;
2.44471.572, subdivisions 2, 4; 473.13, by adding a subdivision; 473.39, by adding a
2.45subdivision; 473.446, subdivision 1; 473H.09; 473H.17, subdivision 1a; 475.59;
2.46477A.013, subdivision 10, by adding a subdivision; 477A.017, subdivision 2,
2.47by adding a subdivision; 477A.03, subdivisions 2a, 2b; 477A.10; 477A.11, by
2.48adding subdivisions; 609.5316, subdivision 3; 611.27, subdivisions 13, 15;
2.49Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended;
2.50Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as
2.51amended, 5, 6; Laws 1996, chapter 471, article 3, section 51; Laws 1999, chapter
2.52243, article 4, section 18, subdivision 1, as amended; Laws 2008, chapter 366,
2.53article 7, section 20; Laws 2009, chapter 88, article 5, section 17, as amended;
2.54Laws 2011, First Special Session chapter 9, article 6, section 97, subdivision
2.556; Laws 2014, chapter 308, article 6, section 7; proposing coding for new law
2.56in Minnesota Statutes, chapters 11A; 16A; 16B; 116J; 116P; 117; 273; 274;
2.57275; 290; 297A; 416; 459; 473; 477A; 609; proposing coding for new law as
2.58Minnesota Statutes, chapter 116X; repealing Minnesota Statutes 2014, sections
3.110A.322, subdivision 4; 13.4967, subdivision 2; 205.10, subdivision 3; 290.06,
3.2subdivision 23; 290.067, subdivisions 2, 2a, 2b; 297A.61, subdivisions 50, 51,
3.352, 53, 54, 55, 56; 297A.992, subdivision 12; 297F.05, subdivision 1a; 477A.017,
3.4subdivision 3; 477A.085; 477A.19; Minnesota Rules, part 4503.1400, subpart 4.
3.5May 22, 2016
3.6The Honorable Kurt L. Daudt
3.7Speaker of the House of Representatives
3.8The Honorable Sandra L. Pappas
3.9President of the Senate
3.10We, the undersigned conferees for H. F. No. 848 report that we have agreed upon the
3.11items in dispute and recommend as follows:
3.12That the Senate recede from its amendments and that H. F. No. 848 be further
3.13amended as follows:
3.14Delete everything after the enacting clause and insert:
3.17 Section 1. [103C.333] COUNTY LEVY AUTHORITY.
3.18Notwithstanding any other law to the contrary, a county levying a tax under section
3.19103C.331 shall not include any taxes levied under those authorities in the levy certified
3.20under section 275.07, subdivision 1, paragraph (a). A county levying under section
3.21103C.331 shall separately certify that amount, and the auditor shall extend that levy as a
3.22special taxing district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).
3.23EFFECTIVE DATE.This section is effective for certifications made in 2016 and
3.24thereafter.
3.25 Sec. 2. Minnesota Statutes 2014, section 138.053, is amended to read:
3.26138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR
3.27TOWNS.
3.28 The governing body of any home rule charter or statutory city or town may annually
3.29appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
3.30market value, derived from ad valorem taxes on property or other revenues, to be paid to
3.31the historical society of its respective city, town, or county to be used for the promotion of
3.32historical work and to aid in defraying the expenses of carrying on the historical work in the
3.33county. No city or town may appropriate any funds for the benefit of any historical society
3.34unless the society is affiliated with and approved by the Minnesota Historical Society.
3.35EFFECTIVE DATE.This section is effective the day following final enactment.
4.1 Sec. 3. [216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE
4.2ASSOCIATION.
4.3A cooperative electric association that has elected to be subject to rate regulation
4.4under section 216B.026 is eligible to file with the commission for approval of an
4.5adjustment for real and personal property taxes, fees, and permits.
4.6EFFECTIVE DATE.This section is effective the day following final enactment.
4.7 Sec. 4. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision
4.8to read:
4.9 Subd. 100. Electric generation facility; personal property. (a) Notwithstanding
4.10subdivision 9, clause (a), attached machinery, transformers, and other personal property
4.11that (1) is part of a natural gas-fired combined heat and power facility, (2) generates
4.12electricity and steam for at least partial consumption as part of an industrial use, including
4.13corn processing, (3) is less than 80,000 kilowatts of installed capacity, and (4) meets the
4.14requirements of this subdivision, are exempt.
4.15(b) At the time of construction, the facility must:
4.16(1) be designed to utilize natural gas as a primary fuel;
4.17(2) not be owned by a public utility as defined in section 216B.02, subdivision 4;
4.18(3) be located within 15 miles of an existing natural gas pipeline and within one mile
4.19of an existing electrical transmission substation; and
4.20(4) be located outside the metropolitan area as defined in section 473.121,
4.21subdivision 2.
4.22(c) Construction of the facility must commence after January 1, 2015, and
4.23before January 1, 2019. Property eligible for this exemption does not include electric
4.24transmission lines and interconnections, or gas pipelines and interconnections, appurtenant
4.25to the property or the facility.
4.26(d) In lieu of personal property taxes each year, the owner of the combined heat and
4.27power facility shall pay a base payment of 0.14 cents per kilowatt-hour of electricity
4.28produced by the facility during the previous calendar year. In addition to the base payment
4.29and in lieu of personal property taxes each year, the owner of the combined heat and power
4.30facility shall pay an additional payment of 0.08 cents per kilowatt-hour of electricity
4.31produced by the facility during the previous calendar year if, during the previous calendar
4.32year, the host township or city had an agreement with a municipal utilities commission
4.33to share the cost of acquiring, developing, and marketing land for industrial purposes,
4.34and under such agreement both the host township or city and the municipal utilities
4.35commission provided funds during the previous calendar year as part of a cost-sharing
5.1agreement. The additional payment to be paid by the owner of the combined heat and
5.2power facility shall be the lesser of 0.08 cents per kilowatt-hour of electricity produced
5.3by the facility or 57 percent of the amount funded by the host township or city during
5.4the previous calendar year pursuant to the aforementioned cost-sharing agreement. The
5.5payments imposed under this section shall be paid to the county treasurer for the benefit of
5.6the host township or city, at the time and in the manner provided for payment of property
5.7taxes under section 277.01, subdivision 3. If unpaid, the payments are subject to the same
5.8enforcement, collection, and interest and penalties as delinquent personal property taxes.
5.9Except to the extent inconsistent with this section, sections 277.01 to 277.24 and 278.01
5.10to 278.13 apply to the payments imposed under this section, and for purposes of those
5.11sections the payments imposed under this section are considered personal property taxes.
5.12(e) The owner of the combined heat and power facility shall file a report with the
5.13commissioner of revenue annually on or before February 1, detailing the amount of
5.14electricity in kilowatt-hours that was produced by the facility and the amount funded by
5.15the host township or city in accordance with the cost-sharing agreement described in
5.16paragraph (d) during the previous calendar year. The commissioner shall prescribe the
5.17form of the report. The report must contain the information required by the commissioner
5.18to determine the payments due under this section payable in the current year. If an owner
5.19of the facility subject to taxation under this section fails to file the report by the due date,
5.20the commissioner of revenue shall determine the payments based upon the nameplate
5.21capacity of the system multiplied by a capacity factor of 85 percent.
5.22EFFECTIVE DATE.This section is effective for taxes payable beginning in 2017
5.23and thereafter.
5.24 Sec. 5. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision
5.25to read:
5.26 Subd. 101. Electric generation facility; personal property. (a) Notwithstanding
5.27subdivision 9, clause (a), attached machinery and other personal property that is part of an
5.28electric generation facility with more than 35 megawatts and less than 40 megawatts of
5.29installed capacity and that meets the requirements of this subdivision is exempt from taxes
5.30and payments in lieu of taxes. The facility must:
5.31(1) be designed to utilize natural gas as a primary fuel;
5.32(2) be owned and operated by a municipal power agency as defined in section
5.33453.52, subdivision 8;
5.34(3) be located within 800 feet of an existing natural gas pipeline;
6.1(4) satisfy a resource deficiency identified in an approved integrated resource plan
6.2filed under section 216B.2422;
6.3(5) be located outside the metropolitan area as defined under section 473.121,
6.4subdivision 2; and
6.5(6) have received, by resolution, the approval of the governing bodies of the city
6.6and county in which it is located for the exemption of personal property provided by
6.7this subdivision.
6.8(b) Construction of the facility must have been commenced after January 1, 2015,
6.9and before January 1, 2016. Property eligible for this exemption does not include electric
6.10transmission lines and interconnections or gas pipelines and interconnections appurtenant
6.11to the property or the facility.
6.12EFFECTIVE DATE.This section is effective for taxes payable in 2017 and
6.13thereafter.
6.14 Sec. 6. Minnesota Statutes 2014, section 272.162, is amended to read:
6.15272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.
6.16 Subdivision 1. Conditions restricting transfer. When a deed or other instrument
6.17conveying a parcel of land is presented to the county auditor for transfer or division under
6.18sections
6.19net tax capacity in the official records and shall not certify the instrument as provided in
6.20section
6.21(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;
6.22(b) The part conveyed appears within the area of application of municipal or
6.23county subdivision regulations adopted and filed under section 394.35 or section
6.24subdivision 1
6.25(c) The part conveyed is part of or constitutes a subdivision as defined in section
6.27 Subd. 2. Conditions allowing transfer. (a) Notwithstanding the provisions of
6.28subdivision 1, the county auditor may transfer or divide the land and its net tax capacity
6.29and may certify the instrument if the instrument contains a certification by the clerk of
6.30the municipality or designated county planning official:
6.31
6.32
6.33municipality or county; or
7.1
7.2been waived by resolution of the governing body of the municipality or county in the
7.3particular case because compliance would create an unnecessary hardship and failure to
7.4comply would not interfere with the purpose of the regulations.
7.5(b) If any of the conditions for certification by the municipality or county as provided
7.6in this subdivision exist and the municipality or county does not certify that they exist
7.7within 24 hours after the instrument of conveyance has been presented to the clerk of
7.8the municipality or designated county planning official, the provisions of subdivision 1
7.9do not apply.
7.10(c) If an unexecuted instrument is presented to the municipality or county and
7.11any of the conditions for certification by the municipality or county as provided in
7.12this subdivision exist, the unexecuted instrument must be certified by the clerk of the
7.13municipality or the designated county planning official.
7.14 Subd. 3. Applicability of restrictions. (a) This section does not apply to the
7.15exceptions set forth in section
7.16(b) This section applies only to land within municipalities or counties which choose
7.17to be governed by its provisions. A municipality or county may choose to have this
7.18section apply to the property within its boundaries by filing a certified copy of a resolution
7.19of its governing body making that choice with the auditor and recorder of the county in
7.20which it is located.
7.21EFFECTIVE DATE.This section is effective the day following final enactment.
7.22 Sec. 7. Minnesota Statutes 2014, section 273.13, subdivision 34, is amended to read:
7.23 Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a
7.24portion of the market value of property owned by a veteran and serving as the veteran's
7.25homestead under this section is excluded in determining the property's taxable market
7.26value if the veteran has a service-connected disability of 70 percent or more as certified
7.27by the United States Department of Veterans Affairs. To qualify for exclusion under this
7.28subdivision, the veteran must have been honorably discharged from the United States
7.29armed forces, as indicated by United States Government Form DD214 or other official
7.30military discharge papers.
7.31 (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
7.32excluded, except as provided in clause (2); and
7.33 (2) for a total (100 percent) and permanent disability, $300,000 of market value is
7.34excluded.
8.1 (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
8.2clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
8.3spouse holds the legal or beneficial title to the homestead and permanently resides there,
8.4the exclusion shall carry over to the benefit of the veteran's spouse
8.5
8.6remarries, or sells, transfers, or otherwise disposes of the property
8.7Qualification under this paragraph requires an annual application under paragraph (h).
8.8(d) If the spouse of a member of any branch or unit of the United States armed
8.9forces who dies due to a service-connected cause while serving honorably in active
8.10service, as indicated on United States Government Form DD1300 or DD2064, holds
8.11the legal or beneficial title to a homestead and permanently resides there, the spouse is
8.12entitled to the benefit described in paragraph (b), clause (2),
8.13
8.14property
8.15(e) If a veteran meets the disability criteria of paragraph (a) but does not own
8.16property classified as homestead in the state of Minnesota, then the homestead of the
8.17veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
8.18would otherwise qualify for under paragraph (b).
8.19 (f) In the case of an agricultural homestead, only the portion of the property
8.20consisting of the house and garage and immediately surrounding one acre of land qualifies
8.21for the valuation exclusion under this subdivision.
8.22 (g) A property qualifying for a valuation exclusion under this subdivision is not
8.23eligible for the market value exclusion under subdivision 35, or classification under
8.24subdivision 22, paragraph (b).
8.25 (h) To qualify for a valuation exclusion under this subdivision a property owner
8.26must apply to the assessor by July 1 of each assessment year, except that an annual
8.27reapplication is not required once a property has been accepted for a valuation exclusion
8.28under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and
8.29the property continues to qualify until there is a change in ownership. For an application
8.30received after July 1 of any calendar year, the exclusion shall become effective for the
8.31following assessment year.
8.32(i) A first-time application by a qualifying spouse for the market value exclusion under
8.33paragraph (d) must be made any time within two years of the death of the service member.
8.34(j) For purposes of this subdivision:
8.35(1) "active service" has the meaning given in section
8.36(2) "own" means that the person's name is present as an owner on the property deed;
9.1(3) "primary family caregiver" means a person who is approved by the secretary of
9.2the United States Department of Veterans Affairs for assistance as the primary provider
9.3of personal care services for an eligible veteran under the Program of Comprehensive
9.4Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
9.5and
9.6(4) "veteran" has the meaning given the term in section
9.7(k) The purpose of this provision of law providing a level of homestead property tax
9.8relief for gravely disabled veterans, their primary family caregivers, and their surviving
9.9spouses is to help ease the burdens of war for those among our state's citizens who bear
9.10those burdens most heavily.
9.11EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
9.12 Sec. 8. Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:
9.13 Subdivision 1. Levy amount. The state general levy is levied against
9.14commercial-industrial property and seasonal residential recreational property, as defined
9.15in this section. The state general levy base amount for commercial-industrial property is
9.16
9.17amount for seasonal-recreational property is $43,111,000 for taxes payable in 2017. For
9.18taxes payable in subsequent years,
9.19multiplying the levy base amount for the prior year by the sum of one plus the rate of
9.20increase, if any, in the implicit price deflator for government consumption expenditures
9.21and gross investment for state and local governments prepared by the Bureau of Economic
9.22Analysts of the United States Department of Commerce for the 12-month period ending
9.23March 31 of the year prior to the year the taxes are payable. The tax under this section is
9.24not treated as a local tax rate under section
9.25unit under chapters 276A and 473F.
9.26The commissioner shall increase or decrease the preliminary or final
9.27year as necessary to account for errors and tax base changes that affected a preliminary or
9.28final rate for either of the two preceding years. Adjustments are allowed to the extent that
9.29the necessary information is available to the commissioner at the time the rates for a year
9.30must be certified, and for the following reasons:
9.31(1) an erroneous report of taxable value by a local official;
9.32(2) an erroneous calculation by the commissioner; and
9.33(3) an increase or decrease in taxable value for commercial-industrial or seasonal
9.34residential recreational property reported on the abstracts of tax lists submitted under
10.1section
10.2section
10.3The commissioner may, but need not, make adjustments if the total difference in the tax
10.4levied for the year would be less than $100,000.
10.5EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
10.6 Sec. 9. Minnesota Statutes 2014, section 275.025, subdivision 2, is amended to read:
10.7 Subd. 2. Commercial-industrial tax capacity. For the purposes of this section,
10.8"commercial-industrial tax capacity" means the tax capacity of all taxable property
10.9classified as class 3 or class 5(1) under section
10.10$100,000 of market value of each parcel of commercial-industrial net tax capacity as
10.11defined under section 273.13, subdivision 24, clauses (1) and (2); (2) electric generation
10.12attached machinery under class 3; and (3) property described in section
10.13commercial-industrial tax capacity amounts are not adjusted for the captured net tax
10.14capacity of a tax increment financing district under section
10.15net tax capacity of transmission lines deducted from a local government's total net tax
10.16capacity under section
10.17capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures
10.18for determining eligibility for tier 1 under section 273.13, subdivision 24, clause (1),
10.19shall apply in determining the portion of a property eligible to be considered within the
10.20first $100,000 of market value.
10.21EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
10.22 Sec. 10. Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read:
10.23 Subd. 4. Apportionment and levy of state general tax.
10.24state general tax must be levied by applying a uniform rate to all commercial-industrial tax
10.25capacity and
10.26rate to all seasonal residential recreational tax capacity. On or before October 1 each year,
10.27the commissioner of revenue shall certify the preliminary state general levy rates to each
10.28county auditor that must be used to prepare the notices of proposed property taxes for taxes
10.29payable in the following year. By January 1 of each year, the commissioner shall certify the
10.30final state general levy
10.31EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
10.32 Sec. 11. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:
11.1 Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the
11.2contrary, on or before September 30, each county
11.3city, and special taxing district, excluding the Metropolitan Council and the Metropolitan
11.4Mosquito Control District, shall certify to the county auditor the proposed property tax
11.5levy for taxes payable in the following year. The proposed levy certification date for
11.6the Metropolitan Council shall be as prescribed in sections 473.249 and 473.446. The
11.7proposed levy certification date for the Metropolitan Mosquito Control District shall be
11.8as prescribed in section 473.711.
11.9 (b) Notwithstanding any law or charter to the contrary, on or before September 15,
11.10each town
11.11Mosquito Control District shall adopt and certify to the county auditor a proposed property
11.12tax levy for taxes payable in the following year. For towns, the final certified levy shall
11.13also be considered the proposed levy.
11.14 (c) On or before September 30, each school district that has not mutually agreed
11.15with its home county to extend this date shall certify to the county auditor the proposed
11.16property tax levy for taxes payable in the following year. Each school district that has
11.17agreed with its home county to delay the certification of its proposed property tax levy
11.18must certify its proposed property tax levy for the following year no later than October
11.197. The school district shall certify the proposed levy as:
11.20 (1) a specific dollar amount by school district fund, broken down between
11.21voter-approved and non-voter-approved levies and between referendum market value
11.22and tax capacity levies; or
11.23 (2) the maximum levy limitation certified by the commissioner of education
11.24according to section
11.25 (d) If the board of estimate and taxation or any similar board that establishes
11.26maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
11.27property tax levies for funds under its jurisdiction by charter to the county auditor by the
11.28date specified in paragraph (a), the city shall be deemed to have certified its levies for
11.29those taxing jurisdictions.
11.30 (e) For purposes of this section, "special taxing district" means a special taxing
11.31district as defined in section
11.32under chapter 124 or 136D, joint powers boards established under sections
11.34also special taxing districts for purposes of this section.
11.35(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
11.36tax levy under this subdivision, the taxing authority shall announce the time and place
12.1of its subsequent regularly scheduled meetings at which the budget and levy will be
12.2discussed and at which the public will be allowed to speak. The time and place of those
12.3meetings must be included in the proceedings or summary of proceedings published in the
12.4official newspaper of the taxing authority under section
12.5EFFECTIVE DATE.This section is effective beginning with proposed levy
12.6certifications for taxes payable in 2017.
12.7 Sec. 12. Minnesota Statutes 2014, section 275.066, is amended to read:
12.8275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
12.9 For the purposes of property taxation and property tax state aids, the term "special
12.10taxing districts" includes the following entities:
12.11 (1) watershed districts under chapter 103D;
12.12 (2) sanitary districts under sections
12.13 (3) regional sanitary sewer districts under sections
12.14 (4) regional public library districts under section
12.15 (5) park districts under chapter 398;
12.16 (6) regional railroad authorities under chapter 398A;
12.17 (7) hospital districts under sections
12.18 (8) St. Cloud Metropolitan Transit Commission under sections
12.19 (9) Duluth Transit Authority under sections
12.20 (10) regional development commissions under sections
12.21 (11) housing and redevelopment authorities under sections
12.22 (12) port authorities under sections
12.23 (13) economic development authorities under sections
12.24 (14) Metropolitan Council under sections
12.25 (15) Metropolitan Airports Commission under sections
12.26 (16) Metropolitan Mosquito Control Commission under sections
12.27 (17) Morrison County Rural Development Financing Authority under Laws 1982,
12.28chapter 437, section 1;
12.29 (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
12.30 (19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
12.31sections 1 to 6;
12.32 (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
12.335, section 39;
13.1 (21) Middle Mississippi River Watershed Management Organization under sections
13.3 (22) emergency medical services special taxing districts under section 144F.01;
13.4 (23) a county levying under the authority of section
13.5
13.6 (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
13.7under Laws 2003, First Special Session chapter 21, article 4, section 12;
13.8 (25) an airport authority created under section
13.9 (26) any other political subdivision of the state of Minnesota, excluding counties,
13.10school districts, cities, and towns, that has the power to adopt and certify a property tax
13.11levy to the county auditor, as determined by the commissioner of revenue.
13.12EFFECTIVE DATE.This section is effective for taxes payable in 2017 and
13.13thereafter.
13.14 Sec. 13. Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read:
13.15 Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b),
13.16the taxes voted by cities, counties, school districts, and special districts shall be certified
13.17by the proper authorities to the county auditor on or before five working days after
13.18December 20 in each year. A town must certify the levy adopted by the town board to
13.19the county auditor by September 15 each year. If the town board modifies the levy at a
13.20special town meeting after September 15, the town board must recertify its levy to the
13.21county auditor on or before five working days after December 20. If a city, town, county,
13.22school district, or special district fails to certify its levy by that date, its levy shall be the
13.23amount levied by it for the preceding year.
13.24(b)(i) The taxes voted by counties under sections
13.25
13.26on or before five working days after December 20 in each year. The taxes certified
13.27shall not be reduced by the county auditor by the aid received under section
13.28subdivision 3
13.29levied by it for the preceding year.
13.30(ii) For purposes of the proposed property tax notice under section
13.31the property tax statement under section
13.32implements the provisions of this paragraph, the county auditor shall reduce the county's
13.33levy for the preceding year to reflect any amount levied for water management purposes
13.34under clause (i) included in the county's levy.
14.1EFFECTIVE DATE.This section is effective for taxes payable in 2017 and
14.2thereafter.
14.3 Sec. 14. Minnesota Statutes 2014, section 276.11, subdivision 1, is amended to read:
14.4 Subdivision 1. Generally. As soon as practical after the settlement day determined
14.5in section
14.6district, or special district, on the warrant of the county auditor, all receipts of taxes levied
14.7by the taxing district and deliver up all orders and other evidences of indebtedness of
14.8the taxing district, taking triplicate receipts for them. The treasurer shall file one of the
14.9receipts with the county auditor, and shall return one by mail on the day of its receipt to
14.10the clerk of the town, city, school district, or special district to which payment was made.
14.11The clerk shall keep the receipt in the clerk's office. Upon written request of the taxing
14.12district, to the extent practicable, the county treasurer shall make partial payments of
14.13amounts collected periodically in advance of the next settlement and distribution. A
14.14statement prepared by the county treasurer must accompany each payment. It must state
14.15the years for which taxes included in the payment were collected and, for each year, the
14.16amount of the taxes and any penalties on the tax. Upon written request of a taxing district,
14.17except school districts, the county treasurer shall pay at least 70 percent of the estimated
14.18collection within 30 days after the settlement date determined in section
14.19
14.20on the envelopes containing real or personal property tax statements, whichever is latest,
14.21the county treasurer shall pay to the treasurer of the school districts 50 percent of the
14.22estimated collections arising from taxes levied by and belonging to the school district,
14.23unless the school district elects to receive 50 percent of the estimated collections arising
14.24from taxes levied by and belonging to the school district after making a proportionate
14.25reduction to reflect any loss in collections as the result of any delay in mailing tax
14.26statements. In that case, 50 percent of those adjusted, estimated collections shall be paid
14.27by the county treasurer to the treasurer of the school district within seven business days of
14.28the due date. The remaining 50 percent of the estimated collections must be paid to the
14.29treasurer of the school district within the next seven business days of the later of the dates
14.30in the preceding sentence, unless the school district elects to receive the remainder of its
14.31estimated collections after a proportionate reduction has been made to reflect any loss in
14.32collections as the result of any delay in mailing tax statements. In that case, the remaining
14.3350 percent of those adjusted, estimated collections shall be paid by the county treasurer to
14.34the treasurer of the school district within 14 days of the due date. The treasurer shall pay
14.35the balance of the amounts collected to a municipal corporation or other body within 60
15.1days after the settlement date determined in section
15.2annual rate of eight percent accrues and must be paid to the taxing district. Interest must
15.3be paid upon appropriation from the general revenue fund of the county. If not paid, it
15.4may be recovered by the taxing district, in a civil action.
15.5EFFECTIVE DATE.This section is effective for property taxes payable in 2017
15.6and thereafter.
15.7 Sec. 15. Minnesota Statutes 2014, section 276.111, is amended to read:
15.8276.111 DISTRIBUTIONS AND FINAL YEAR-END SETTLEMENT.
15.9Within
15.10the school districts 50 percent of the estimated collections arising from taxes levied by
15.11and belonging to the school district from the settlement day determined in section
15.12to October 20. The remaining 50 percent of the estimated tax collections must be paid
15.13to the school district within the next seven business days. Within
15.14after November 15, the county treasurer shall pay to the school district 100 percent of the
15.15estimated collections arising from taxes levied by and belonging to the school districts
15.16from October 20 to November 20.
15.17Within
15.18each taxing district, except any school district, 100 percent of the estimated collections
15.19arising from taxes levied by and belonging to each taxing district from the settlement day
15.20determined in section
15.21On or before January 5, the county treasurer shall make full settlement with the
15.22county auditor of all receipts collected from the settlement day determined in section
15.24the taxing districts in October and November, the treasurer shall pay to each of the taxing
15.25districts on or before January 25, the balance of the tax amounts collected on behalf of
15.26each taxing district. Interest accrues at an annual rate of eight percent and must be paid to
15.27the taxing district if this final settlement amount is not paid by January 25. Interest must
15.28be paid upon appropriation from the general revenue fund of the county. If not paid, it
15.29may be recovered by the taxing district in a civil action.
15.30EFFECTIVE DATE.This section is effective for property taxes payable in 2017
15.31and thereafter.
15.32 Sec. 16. Minnesota Statutes 2014, section 278.12, is amended to read:
15.33278.12 REFUNDS OF OVERPAYMENT.
16.1If upon final determination the petitioner has paid more than the amount so
16.2determined to be due, judgment shall be entered in favor of the petitioner for such excess,
16.3and upon filing a copy thereof with the county auditor the auditor shall forthwith draw a
16.4warrant upon the county treasurer for the payment thereof; provided that, with the consent
16.5of the petitioner, the county auditor may, in lieu of drawing such warrant, issue to the
16.6petitioner a certificate stating the amount of such judgment, which amount may be used
16.7to apply upon any taxes due or to become due over a prescribed period of years for the
16.8taxing district or districts whose taxes or assessments are reduced, or their successors in
16.9the event of a reorganization or reincorporation of any such taxing district. In the event the
16.10auditor shall issue a warrant for refund or certificates, the amount thereof shall be charged
16.11to the state and other taxing districts in proportion to the amount of their respective taxes
16.12included in the levy and deduct the same in the subsequent distribution of any tax proceeds
16.13to the state or such taxing districts, and upon receiving any such certificate in payment of
16.14other taxes, the amount thereof shall be distributed to the state and other taxing districts
16.15in proportion to the amount of their respective taxes included in the levy; provided that
16.16if in the judgment the levy of one or more of the districts be found to be illegal, to the
16.17extent that the tax so levied is reduced on account of the illegal levies, the amount to be
16.18charged back shall be charged to the districts and the amount thereof deducted from
16.19any distributions thereafter made to them.
16.20EFFECTIVE DATE.This section is effective for refunds for overpayment of taxes
16.21payable in 2016 and thereafter.
16.22 Sec. 17. Minnesota Statutes 2014, section 278.14, subdivision 1, is amended to read:
16.23 Subdivision 1. Applicability. A county must pay a refund of a mistakenly billed
16.24tax as provided in this section. As used in this section, "mistakenly billed tax" means an
16.25amount of property tax that was billed, to the extent the amount billed exceeds the accurate
16.26tax amount due to a
16.27mathematical error in the calculation of the tax on the owner's property, together with
16.28any penalty or interest paid on that amount. This section applies only to taxes payable
16.29in the current year and the two prior years. As used in this section, "mathematical error"
16.30is limited to an error in:
16.31(1) converting the market value of a property to tax capacity or to a referendum
16.32market value;
16.33(2) application of the tax rate as computed by the auditor under sections
16.34subdivisions 1b, 1c, and 1d
16.35and 5, to the property's tax capacity or referendum market value; or
17.1(3) calculation of or eligibility for a credit.
17.2
17.3
17.4
17.5EFFECTIVE DATE.This section is effective based on property taxes payable in
17.62017 and thereafter.
17.7 Sec. 18. Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read:
17.8 Subdivision 1. Due dates; penalties.
17.9
17.10
17.11
17.12(a) When the taxes against any tract or lot exceed $100, one-half of the amount of tax
17.13due must be paid prior to May 16, and the remaining one-half must be paid prior to the
17.14following October 16. If either tax amount is unpaid as of its due date, a penalty is
17.15imposed at a rate of two percent on homestead property
17.16on nonhomestead property. If complete payment has not been made by the first day of
17.17the month following either due date, an additional penalty of two percent on
17.18
17.19property and
17.20
17.21
17.22
17.23
17.24
17.25
17.26
17.27
17.28
17.29
17.30for both homestead and nonhomestead property, on the first day of each subsequent
17.31month
17.32additional penalty of one percent for each month accrues and is charged on all such unpaid
17.33taxes provided that
17.34
17.35
18.1
18.2
18.3
18.4
18.5
18.6
18.7
18.8
18.9
18.10
18.11
18.12
18.13
18.14
18.15
18.16
18.17property, or 12 percent in the case of nonhomestead property.
18.18(b) If the property tax statement was not postmarked prior to April 25, the first
18.19half payment due date in paragraph (a) shall be 21 days from the postmark date of the
18.20property tax statement, and all penalties referenced in paragraph (a) shall be determined
18.21with regard to the later due date.
18.22(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties
18.23as specified in paragraph (a) or (b) for the first half payment shall apply to the entire
18.24amount of the tax due.
18.25(d) For commercial use real property used for seasonal residential recreational
18.26purposes and classified as class 1c or 4c, and on other commercial use real property
18.27classified as class 3a, provided that over 60 percent of the gross income earned by the
18.28enterprise on the class 3a property is earned during the months of May, June, July, and
18.29August, penalty does not accrue until June 1 of each year. For a class 3a property to
18.30qualify for the later due date, the owner of the property must attach an affidavit to the
18.31payment attesting to compliance with the income requirements of this paragraph.
18.32 (e) This section applies to payment of personal property taxes assessed against
18.33improvements to leased property, except as provided by section
18.34 (f) A county may provide by resolution that in the case of a property owner that has
18.35multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
18.36installments as provided in this subdivision.
19.1 (g) The county treasurer may accept payments of more or less than the exact amount
19.2of a tax installment due. Payments must be applied first to the oldest installment that is due
19.3but which has not been fully paid. If the accepted payment is less than the amount due,
19.4payments must be applied first to the penalty accrued for the year or the installment being
19.5paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
19.6payment required as a condition for filing an appeal under section
19.7nor does it affect the order of payment of delinquent taxes under section
19.8EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
19.9 Sec. 19. Minnesota Statutes 2014, section 279.01, subdivision 2, is amended to read:
19.10 Subd. 2. Abatement of penalty. (a) The county board may, with the concurrence
19.11of the county treasurer, delegate to the county treasurer the power to abate the penalty
19.12provided for late payment of taxes in the current year. Notwithstanding section
19.13if any county board so elects, the county treasurer may abate the penalty on finding that
19.14the imposition of the penalty would be unjust and unreasonable.
19.15(b) The county treasurer shall abate the penalty provided for late payment of taxes in
19.16the current year if the property tax payment is delivered by mail to the county treasurer
19.17and the envelope containing the payment is postmarked by the United States Postal
19.18Service within one business day of the due date prescribed under this section, but only if
19.19the property owner requesting the abatement has not previously received an abatement
19.20of penalty for late payment of tax under this paragraph.
19.21EFFECTIVE DATE.This section is effective for property taxes payable in 2017
19.22and thereafter.
19.23 Sec. 20. Minnesota Statutes 2014, section 279.01, subdivision 3, is amended to read:
19.24 Subd. 3. Agricultural property.
19.25class 2a agricultural homestead property, and class 2a agricultural nonhomestead property,
19.26no penalties shall attach to the second one-half property tax payment as provided in this
19.27section if paid by November 15. Thereafter
19.28
19.29
19.30
19.31
19.32
20.1
20.2subdivision 1.
20.3If the owner of class 1b agricultural homestead or class 2a agricultural property
20.4receives a consolidated property tax statement that shows only an aggregate of the taxes
20.5and special assessments due on that property and on other property not classified as class
20.61b agricultural homestead or class 2a agricultural property, the aggregate tax and special
20.7assessments shown due on the property by the consolidated statement will be due on
20.8November 15.
20.9
20.10
20.11
20.12
20.13EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
20.14 Sec. 21. Minnesota Statutes 2014, section 279.03, subdivision 2, is amended to read:
20.15 Subd. 2. Rate for composite judgment; rate for homestead composite judgment,
20.16repurchase of forfeited homestead property, and sale of forfeited property. (a) Except
20.17as provided in paragraph (b), amounts included in composite judgments authorized
20.18by section
20.19subdivision 1a. During each calendar year, interest shall accrue on the unpaid balance
20.20of the composite judgment from the time it is confessed until it is paid. The interest rate
20.21established at the time the judgment is confessed is fixed for the duration of that judgment.
20.22(b) The following amounts are subject to interest as provided in paragraph (c):
20.23(1) amounts included in composite judgments on parcels classified as 1a or 1b
20.24and used as the homestead of the owner;
20.25(2) amounts in contracts for repurchase of property classified as 1a or 1b at the time
20.26of forfeiture or at the time that the repurchase application is approved; and
20.27(3) sales of forfeited property pursuant to section 282.01, subdivision 4.
20.28
20.29
20.30
20.31
20.32(c) By October 15 each year the commissioner shall set the interest rate under this
20.33subdivision at the greater of five percent or two percent above the prime rate charged
20.34by banks during the six-month period ending on September 30 of that year, rounded to
20.35the nearest full percent, provided that the rate must not exceed the maximum annum
21.1rate specified under section 279.03, subdivision 1a. By November 1 of each year the
21.2commissioner must certify the rate to the county auditor. The rate of interest becomes
21.3effective on January 1 of the immediately succeeding year. The commissioner's
21.4determination under this subdivision is not a rule subject to the Administrative Procedure
21.5Act in chapter 14, including section 14.386.
21.6(d) For the purposes of this subdivision, "prime rate charged by banks" means the
21.7average predominant prime rate quoted by commercial banks to large businesses, as
21.8determined by the Board of Governors of the Federal Reserve System.
21.9EFFECTIVE DATE.This section is effective for composite judgments, repurchase
21.10contracts, and sales of forfeited property occurring after January 1, 2017.
21.11 Sec. 22. Minnesota Statutes 2014, section 279.37, subdivision 2, is amended to read:
21.12 Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to
21.13whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
21.14make and file with the county auditor of the county in which the parcel is located a written
21.15offer to pay the current taxes each year before they become delinquent, or to contest
21.16the taxes under chapter 278 and agree to confess judgment for the amount provided, as
21.17determined by the county auditor. By filing the offer, the owner waives all irregularities
21.18in connection with the tax proceedings affecting the parcel and any defense or objection
21.19which the owner may have to the proceedings, and also waives the requirements of any
21.20notice of default in the payment of any installment or interest to become due pursuant to
21.21the composite judgment to be so entered. Unless the property is subject to subdivision 1a,
21.22with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent taxes,
21.23costs, penalty, and interest, and (ii) tender all current year taxes and penalty due at the
21.24time the confession of judgment is entered. In the offer, the owner shall agree to pay the
21.25balance in nine equal installments, with interest as provided in section
21.26annually on installments remaining unpaid from time to time, on or before December 31
21.27of each year following the year in which judgment was confessed.
21.28(b)
21.29
21.30
21.31
21.32
21.33
21.34
21.35
22.1
22.2
22.3
22.4subdivision 1a, unless the parcel is classified as 1a or 1b, and is used as the homestead of
22.5the owner, in which case the rate provided in section 279.03, subdivision 2, shall apply.
22.6A parcel that is classified as relative homestead under section 273.124, subdivision 1,
22.7paragraph (c), is subject to interest at the rate provided in section 279.03, subdivision 1a.
22.8(c) Interest shall commence with the date the judgment is entered. During each
22.9calendar year, interest shall accrue on the unpaid balance of the composite judgment
22.10from the time it is confessed until it is paid. The interest rate established at the time the
22.11judgment is confessed is fixed for the duration of that judgment.
22.12(d) If a default occurs in the payments under any confessed judgment, the taxes and
22.13penalties due are subject to the interest rate specified in section 279.03, subdivision 1a,
22.14regardless of the classification of the parcel. For the purposes of this subdivision
22.15
22.16
22.17
22.18
22.19nonpayment of the current year tax or failure to make any installment payment required by
22.20this confessed judgment within 60 days from the date on which payment was due.
22.21
22.22
22.23
22.24
22.25
22.26judgment may do so at the interest rate provided in paragraph (b).
22.27
22.28
22.29
22.30(f) The offer must be substantially as follows:
22.31"To the court administrator of the district court of ........... county, I, .....................,
22.32am the owner of the following described parcel of real estate located in ....................
22.33county, Minnesota:
22.34.............................. Upon that real estate there are delinquent taxes for the year ........., and
22.35prior years, as follows: (here insert year of delinquency and the total amount of delinquent
22.36taxes, costs, interest, and penalty). By signing this document I offer to confess judgment
23.1in the sum of $...... and waive all irregularities in the tax proceedings affecting these
23.2taxes and any defense or objection which I may have to them, and direct judgment to be
23.3entered for the amount stated above, minus the sum of $............, to be paid with this
23.4document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and
23.5interest stated above. I agree to pay the balance of the judgment in nine or four equal,
23.6annual installments, with interest as provided in section
23.7installments remaining unpaid. I agree to pay the installments and interest on or before
23.8December 31 of each year following the year in which this judgment is confessed and
23.9current taxes each year before they become delinquent, or within 30 days after the entry of
23.10final judgment in proceedings to contest the taxes under chapter 278.
23.11Dated .............., ......."
23.12EFFECTIVE DATE.This section is effective for sales and repurchases occurring
23.13after January 1, 2017.
23.14 Sec. 23. Minnesota Statutes 2014, section 282.01, subdivision 4, is amended to read:
23.15 Subd. 4. Sale: method, requirements, effects. The sale authorized under
23.16subdivision 3 must be conducted by the county auditor at the county seat of the county in
23.17which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may
23.18be conducted in any county facility within the county. The sale must not be for less than
23.19the appraised value except as provided in subdivision 7a. The parcels must be sold for
23.20cash only, unless the county board of the county has adopted a resolution providing for
23.21their sale on terms, in which event the resolution controls with respect to the sale. When
23.22the sale is made on terms other than for cash only (1) a payment of at least ten percent
23.23of the purchase price must be made at the time of purchase, and the balance must be
23.24paid in no more than ten equal annual installments, or (2) the payments must be made
23.25in accordance with county board policy, but in no event may the board require more
23.26than 12 installments annually, and the contract term must not be for more than ten years.
23.27Standing timber or timber products must not be removed from these lands until an amount
23.28equal to the appraised value of all standing timber or timber products on the lands at the
23.29time of purchase has been paid by the purchaser. If a parcel of land bearing standing
23.30timber or timber products is sold at public auction for more than the appraised value, the
23.31amount bid in excess of the appraised value must be allocated between the land and the
23.32timber in proportion to their respective appraised values. In that case, standing timber or
23.33timber products must not be removed from the land until the amount of the excess bid
23.34allocated to timber or timber products has been paid in addition to the appraised value of
24.1the land. The purchaser is entitled to immediate possession, subject to the provisions of
24.2any existing valid lease made in behalf of the state.
24.3
24.4
24.5of the purchase price
24.6at the rate
24.7
24.8
24.9
24.10
24.11EFFECTIVE DATE.This section is effective for sales occurring after January
24.121, 2017.
24.13 Sec. 24. Minnesota Statutes 2014, section 282.261, subdivision 2, is amended to read:
24.14 Subd. 2. Interest rate. The unpaid balance on any repurchase contract approved
24.15by the county board for property classified as 1a or 1b and used as the homestead of the
24.16owner at the time of forfeiture or at the time that the repurchase application is approved is
24.17subject to interest at the rate determined in section
24.18
24.19
24.20contract approved by the county board is subject to interest at the rate determined in
24.21section 279.03, subdivision 1a, which is subject to change each year in the manner
24.22provided for in section 279.03, subdivision 1a.
24.23EFFECTIVE DATE.This section is effective for repurchases occurring after
24.24January 1, 2017.
24.25 Sec. 25. Minnesota Statutes 2014, section 473H.09, is amended to read:
24.26473H.09 EARLY TERMINATION.
24.27 Subdivision 1. Public emergency. Termination of an agricultural preserve earlier
24.28than a date derived through application of section
24.29event of a public emergency upon petition from the owner or authority to the governor.
24.30The determination of a public emergency shall be by the governor through executive order
24.31pursuant to sections
24.32preserve, the reasons requiring the action and the date of termination.
25.1 Subd. 2. Death of owner. (a) Within 180 days of the death of an owner, an owner's
25.2spouse, or other qualifying person, the surviving owner may elect to terminate the
25.3agricultural preserve and the covenant allowing the land to be enrolled as an agricultural
25.4preserve by notifying the authority on a form provided by the commissioner of agriculture.
25.5Termination of a covenant under this subdivision must be executed and acknowledged in
25.6the manner required by law to execute and acknowledge a deed.
25.7(b) For purposes of this subdivision, the following definitions apply:
25.8(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the
25.9decedent was the settlor or a beneficiary of, or member of an entity permitted to own
25.10agricultural land and engage in farming under section 500.24 that owned the agricultural
25.11preserve; and
25.12(2) "surviving owner" includes the executor of the estate of the decedent, the trustee
25.13for a trust that the decedent was the settlor or a beneficiary of, or an entity permitted to
25.14own farm land under section 500.24 of which the decedent was a partner, shareholder, or
25.15member.
25.16(c) When an agricultural preserve is terminated under this subdivision, the property
25.17is subject to additional taxes in an amount equal to 50 percent of the taxes actually
25.18levied against the property for the current taxes payable year. The additional taxes are
25.19extended against the property on the tax list for taxes payable in the current year. The
25.20additional taxes must be distributed among the jurisdictions levying taxes on the property
25.21in proportion to the current year's taxes.
25.22EFFECTIVE DATE.This section is effective July 1, 2016.
25.23 Sec. 26. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243,
25.24article 6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154,
25.25article 2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read:
25.26 Sec. 3. TAX; PAYMENT OF EXPENSES.
25.27 (a) The tax levied by the hospital district under Minnesota Statutes, section
25.28must not be levied at a rate that exceeds the amount authorized to be levied under that
25.29section. The proceeds of the tax may be used for all purposes of the hospital district,
25.30except as provided in paragraph (b).
25.31 (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by
25.32the Cook ambulance service and the Orr ambulance service for the purpose of:
25.33 (1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance
25.34service;
25.35 (2) attached and portable equipment for use in and for the ambulances; and
26.1 (3) parts and replacement parts for maintenance and repair of the ambulances, and
26.2administrative, operation, or salary expenses for the Cook ambulance service and the
26.3Orr ambulance service.
26.4
26.5 (c) The part of the levy referred to in paragraph (b) must be administered by the
26.6Cook Hospital and passed on in equal amounts directly to the Cook area ambulance
26.7service board and the city of Orr to be used for the purposes in paragraph (b).
26.8EFFECTIVE DATE.This section is effective the day following final enactment.
26.9 Sec. 27. Laws 1996, chapter 471, article 3, section 51, is amended to read:
26.10 Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.
26.11
26.12Carlton county board of commissioners may levy in and for the unorganized township of
26.13Sawyer an amount up to
26.14
26.15
26.16
26.17EFFECTIVE DATE.This section is effective the day after the Carlton County
26.18Board of Commissioners and its chief clerical officer comply with section 645.021,
26.19subdivisions 2 and 3, and applies to taxes payable in 2017.
26.20 Sec. 28. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by
26.21Laws 2013, chapter 143, article 4, section 36, is amended to read:
26.22 Subdivision 1. Agreement. The city of Cloquet and Perch Lake Township, by
26.23resolution of each of their governing bodies, may establish the Cloquet Area Fire and
26.24Ambulance Special Taxing District for the purpose of providing fire or ambulance
26.25services, or both, throughout the district. In this section, "municipality" means home rule
26.26charter and statutory cities, towns, and Indian tribes. The district may exercise all the
26.27powers relating to fire and ambulance services of the municipalities that receive fire or
26.28ambulance services, or both, from the district. Upon application, any other municipality
26.29may join the district with the agreement of the municipalities that comprise the district at
26.30the time of its application to join.
26.31EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
26.32the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
26.33governing body of each.
27.1 Sec. 29. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:
27.2 Subd. 2. Board. The Cloquet Area Fire and Ambulance Special Taxing District
27.3Board is governed by a board made up initially of one or more elected officials of the
27.4governing body of each participating municipality in the proportions set out in the
27.5establishing resolution, subject to change as provided in the district's charter, if any, or
27.6in the district's bylaws. Each municipality's representatives serve at the pleasure of that
27.7municipality's governing body.
27.8EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
27.9the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
27.10governing body of each.
27.11 Sec. 30. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by
27.12Laws 2013, chapter 143, article 4, section 37, is amended to read:
27.13 Subd. 3. Tax. (a) The district board may impose a property tax on taxable property
27.14as provided in this subdivision to pay the costs of providing fire or ambulance services,
27.15or both, throughout the district. The board shall annually determine the total amount of
27.16the levy that is attributable to the cost of providing fire services and the cost of providing
27.17ambulance services within the primary service area. For those municipalities that only
27.18receive ambulance services, the costs for the provision of ambulance services shall
27.19be levied against taxable property within those municipalities at a rate necessary not to
27.20exceed 0.019 percent of the estimated market value. For those municipalities that receive
27.21both fire and ambulance services, the tax shall be imposed at a rate that does not exceed
27.220.2835 percent of estimated market value.
27.23(b) When a member municipality opts to receive fire service from the district or
27.24an additional municipality becomes a member of the district, the cost of providing fire
27.25services to that community shall be determined by the board and added to the maximum
27.26levy amount.
27.27(c) Each county auditor of a county that contains a municipality subject to the tax
27.28under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing
27.29District. The district may also impose other fees or charges as allowed by law for the
27.30provision of fire and ambulance services.
27.31EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
27.32the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
27.33governing body of each.
28.1 Sec. 31. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:
28.2 Subd. 4. Public indebtedness. (a) The district may incur debt in the manner
28.3provided for a municipality by Minnesota Statutes, chapter 475, and may issue certificates
28.4of indebtedness or capital notes in the manner provided for a city by Minnesota Statutes,
28.5section 412.301, when necessary to accomplish its duties, except that the district may
28.6not incur debt or issue obligations until first obtaining the approval of a majority of the
28.7electors voting on the question of issuing the obligation. The debt service for debt used to
28.8finance capital costs for ambulance service shall be levied against taxable property within
28.9the municipalities in the primary service area. The debt service for debt used to finance
28.10capital costs for fire service shall be levied against taxable property within municipalities
28.11receiving fire services. The district board shall pledge its full faith and credit and taxing
28.12power without limitation as to rate or amount for the payment of the district's debt.
28.13(b) For purposes of this subdivision, "municipality" has the definition given in
28.14Minnesota Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph
28.15(c).
28.16EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
28.17the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
28.18governing body of each.
28.19 Sec. 32. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:
28.20 Subd. 5. Withdrawal. Notice of intent to withdraw from participation in the district
28.21may be given only in the month of January, with a minimum of twelve months notice of
28.22intent to withdraw. Withdrawal becomes effective for taxes levied pursuant to subdivision
28.233 in the year when the notice is given. A property tax on taxable property located in a
28.24withdrawing municipality that has been levied by the district pursuant to subdivision 4
28.25remains in effect until the obligations outstanding on the date of withdrawal are satisfied,
28.26including any property tax levied in connection with refunding such obligations. The
28.27district and its members may also develop and agree upon other continuing obligations
28.28after withdrawal of a municipality.
28.29EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
28.30the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
28.31governing body of each.
28.32 Sec. 33. 2016 TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE
28.33WAIVER.
29.1If a city or town that conducts local board of appeal and equalization meetings
29.2certified by February 1, 2016, that it was in compliance with the requirements of
29.3Minnesota Statutes, section 274.014, subdivision 2, but no member of the local board
29.4who has attended an appeal and equalization course training within the preceding four
29.5years attended the local board's meeting for 2016, that local board shall have its powers
29.6reinstated for the 2017 assessment by resolution of the governing body of the city or
29.7town, and by certifying it is in compliance with the requirements of Minnesota Statutes,
29.8section 274.014, subdivision 2. The resolution and certification must be provided to
29.9the county assessor by February 1, 2017.
29.10EFFECTIVE DATE.This section is effective the day following final enactment.
29.11 Sec. 34. TOWN OF TOFTE; MUNICIPAL HOUSING.
29.12(a) Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988,
29.13chapter 719, article 19, section 27, the town of Tofte may own and operate within its
29.14boundary up to 12 units of housing for individuals over 55 years of age or families with
29.15one member of the household that is over 55 years of age, or projects that provide housing
29.16for individuals or families with incomes not greater than 120 percent of the median
29.17family income, as estimated by the United States Department of Housing and Urban
29.18Development for the nonmetropolitan county in which the town of Tofte is located.
29.19(b) The town of Tofte shall have the powers of a city under Minnesota Statutes,
29.20chapter 462C, and the powers of an authority under Minnesota Statutes, sections 469.001
29.21to 469.047, with respect to this section. Upon the approval of the town board, the town of
29.22Tofte may levy the tax described in Minnesota Statutes, section 469.033, subdivision 6.
29.23(c) Nothing in this section shall limit the power of the Cook County/Grand Marais
29.24Joint Economic Development Authority to exercise jurisdiction within the town of Tofte.
29.25The authority to undertake new projects under this section shall expire on June 30, 2017.
29.26EFFECTIVE DATE.This section is effective the day after compliance by
29.27the governing body of the town of Tofte with Minnesota Statutes, section 645.021,
29.28subdivisions 2 and 3.
29.29 Sec. 35. SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL
29.30ASSESSMENT.
29.31Any real or personal property acquired, owned, leased, controlled, used, or occupied
29.32by the city of St. Paul for the primary purpose of providing a stadium for a Major League
29.33Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for
30.1public, governmental, and municipal purposes, and is exempt from ad valorem taxation by
30.2the state or any political subdivision of the state, provided that the properties are subject to
30.3special assessments levied by a political subdivision for a local improvement in amounts
30.4proportionate to and not exceeding the special benefit received by the properties from the
30.5improvement. In determining the special benefit received by the properties, no possible
30.6use of any of the properties in any manner different from their intended use for providing a
30.7Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota
30.8Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a
30.9lease or use agreement between the city and another person for uses related to the purposes
30.10of the operation of the stadium and related parking facilities is exempt from taxation
30.11regardless of the length of the lease or use agreement. This section, insofar as it provides
30.12an exemption or special treatment, does not apply to any real property that is leased for
30.13residential, business, or commercial development or other purposes different from those
30.14necessary to the provision and operation of the stadium.
30.15EFFECTIVE DATE.This section is effective upon approval by the St. Paul City
30.16Council and compliance with Minnesota Statutes, section 645.021.
30.17 Sec. 36. OPTIONAL CANCELLATION OF TAX FORFEITURE FOR CERTAIN
30.18BUILDINGS; ST. LOUIS COUNTY.
30.19 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
30.20have the meanings given.
30.21(b) "Building PIN" means a parcel identification number that is assigned to a
30.22building and does not include the land upon which the building is located; and
30.23(c) "Land PIN" means a parcel identification number that is assigned to land upon
30.24which a building associated with a building PIN is located.
30.25 Subd. 2. Optional cancellation of tax forfeiture for buildings with building PINs.
30.26Notwithstanding any law to the contrary, if any building associated with a building PIN
30.27and located in St. Louis County forfeits or has forfeited to the state of Minnesota before,
30.28on, or after the date of enactment of this section because of nonpayment of delinquent
30.29property taxes, special assessments, penalties, interest, or costs, the county auditor of St.
30.30Louis County may, with approval from the county board and the commissioner of revenue:
30.31(1) cancel the certificate of forfeiture and set aside the forfeiture without reinstating
30.32the unpaid property taxes, special assessments, penalties, interest, or costs; and
31.1(2) combine the building PIN with its associated land PIN. When this occurs, the
31.2land PIN is the only surviving parcel identification number, and includes both the building
31.3and the land upon which the building is located.
31.4 Subd. 3. Cancellation of tax forfeiture; taxation through date of cancellation.
31.5Notwithstanding any law to the contrary, if the county auditor of St. Louis County cancels
31.6a certificate of forfeiture and sets aside a forfeiture in accordance with subdivision 2,
31.7the affected building is not subject to taxation from the date of forfeiture through the
31.8date of cancellation.
31.9 Subd. 4. Appropriation. $1,000,000 in fiscal year 2017 only is appropriated from
31.10the general fund to the commissioner of revenue for a grant to St. Louis County that shall
31.11be paid on July 1, 2016. The county may only use the grant to remove any building,
31.12upon the request of the landowner, after the county has complied with the provisions of
31.13subdivision 2.
31.14EFFECTIVE DATE.This section is effective the day following final enactment.
31.15 Sec. 37. LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.
31.16 Subdivision 1. Abatements authorized. (a) Notwithstanding Minnesota Statutes,
31.17section 375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may
31.18grant an abatement of local property taxes for taxes payable in 2016 provided that:
31.19(1) the property is classified as 1c, 3a (excluding utility real and personal property),
31.204c(1), 4c(10), or 4c(11);
31.21(2) on or before February 1, 2017, the taxpayer submits a written application to the
31.22county assessor in the county in which abatement is sought; and
31.23(3) the taxpayer meets qualification requirements established in subdivision 3.
31.24 Subd. 2. Appeals. An appeal may not be taken to the Tax Court from any order
31.25of the county board made pursuant to the exercise of the discretionary authority granted
31.26in this section.
31.27 Subd. 3. Qualification requirements. To qualify for abatements under this section,
31.28a taxpayer must:
31.29(1) be located within one of the following municipalities surrounding Lake Mille
31.30Lacs:
31.31(i) in Crow Wing County, the city of Garrison, township of Garrison, or township
31.32of Roosevelt;
32.1(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township
32.2of Malmo, or township of Lakeside; or
32.3(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township
32.4of East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
32.5(2) document a reduction in gross receipts of five percent or greater between two
32.6successive calendar years beginning in 2010 or later; and
32.7(3) be a business in one of the following industries, as defined within the North
32.8American Industry Classification System: accommodation, restaurants, bars, amusement
32.9and recreation, food and beverages retail, sporting goods, miscellaneous retail, general
32.10retail, museums, historical sites, health and personal care, gas station, general merchandise,
32.11business and professional membership, movies, or nonstore retailer, as determined by the
32.12county in consultation with the commissioner of employment and economic development.
32.13 Subd. 4. State general levy in relief area. The counties of Aitkin, Crow Wing, and
32.14Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a
32.15(excluding utility real and personal property), or 4c(1) that is located in the area described
32.16by subdivision 3, clause (1), for taxes payable in 2016. No refund may be issued to a
32.17taxpayer whose property taxes are delinquent.
32.18 Subd. 5. Certification and transfer of funds. (a) By April 1, 2017, a county
32.19granting a refund as required under subdivision 4 must certify the total amount of state
32.20general tax refunded to Mille Lacs County and the commissioner of revenue. By May 1,
32.212017, Mille Lacs County must transfer an amount equal to the amount certified under this
32.22paragraph to the county making the certification.
32.23(b) By April 1, 2017, a county that has received an application for an abatement
32.24authorized under subdivision 1 must certify to Mille Lacs County the total amount of
32.25abatements for which applications have been received and approved. By May 1, 2017,
32.26Mille Lacs County must transfer an amount equal to the amount certified under this
32.27paragraph to the county making the certification. If the amount appropriated under
32.28subdivision 6, minus the amount transferred under paragraph (a), is not sufficient to make
32.29the transfer required under this paragraph, Mille Lacs County must reduce the amount
32.30transferred to each county by a uniform percentage. By June 30, 2017, the county must
32.31issue refunds of local property tax amounts to qualified properties, in proportion to the
32.32amount received from Mille Lacs County. No refund may be issued to a taxpayer whose
32.33property taxes are delinquent.
32.34(c) By August 1, 2017, Mille Lacs County must calculate the amount transferred
32.35under paragraphs (a) and (b), and subtract that amount from $1,400,000 to obtain the
33.1ongoing economic relief distribution amount, if any. This amount must be transferred to
33.2the counties of Aitkin, Crow Wing, and Mille Lacs in proportion to the amounts certified
33.3by each county under paragraphs (a) and (b). A county receiving a transfer under this
33.4paragraph must use the funds received to provide abatements to business properties under
33.5economic hardship for taxes payable in 2017, and each year thereafter until a county's
33.6share of the ongoing economic relief distribution amount is exhausted.
33.7 Subd. 6. Commissioner of revenue; appropriation. $1,400,000 in fiscal year 2017
33.8is appropriated from the general fund to the commissioner of revenue for transfer to
33.9Mille Lacs County to make the transfers required under subdivision 5. This is a onetime
33.10appropriation.
33.11 Subd. 7. Report to legislature. The commissioner of revenue must make a
33.12written report to the chairs and ranking minority members of the legislative committees
33.13with jurisdiction over taxes stating the amount of abatements and refunds given under
33.14this section by taxing jurisdictions by February 1, 2018. The counties must provide the
33.15commissioner with the information necessary to make the report.
33.16EFFECTIVE DATE.This section is effective the day following final enactment.
33.17 Sec. 38. REPEALER.
33.18Minnesota Statutes 2014, section 272.02, subdivision 23, is repealed.
33.19EFFECTIVE DATE.This section is effective for taxes payable in 2017 and
33.20thereafter.
33.23 Section 1. [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.
33.24 Subdivision 1. Eligibility. All class 2a, 2b, and 2c property under section 273.13,
33.25subdivision 23, other than property consisting of the house, garage, and immediately
33.26surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
33.27under this section.
33.28 Subd. 2. Credit amount. For each qualifying property, the school building bond
33.29agricultural credit is equal to 40 percent of the property's eligible net tax capacity
33.30multiplied by the school debt tax rate determined under section 275.08, subdivision 1b.
33.31 Subd. 3. Credit reimbursements. The county auditor shall determine the tax
33.32reductions allowed under this section within the county for each taxes payable year and
34.1shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
34.2lists submitted under section 275.29. Any prior year adjustments shall also be certified on
34.3the abstracts of tax lists. The commissioner shall review the certifications for accuracy,
34.4and may make such changes as are deemed necessary, or return the certification to the
34.5county auditor for correction. The credit under this section must be used to reduce the
34.6school district net tax capacity-based property tax as provided in section
34.7 Subd. 4. Payment. The commissioner of revenue shall certify the total of the tax
34.8reductions granted under this section for each taxes payable year within each school
34.9district to the commissioner of education, who shall pay the reimbursement amounts to
34.10each school district as provided in section
34.11 Subd. 5. Appropriation. An amount sufficient to make the payments required by this
34.12section is annually appropriated from the general fund to the commissioner of education.
34.13EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
34.14 Sec. 2. Minnesota Statutes 2014, section 273.1392, is amended to read:
34.15273.1392 PAYMENT; SCHOOL DISTRICTS.
34.16The amounts of bovine tuberculosis credit reimbursements under section
34.17conservation tax credits under section
34.18under sections
34.19sections
34.20property credit payments under section
34.21reduction under section
34.22of Education by the Department of Revenue. The amounts so certified shall be paid
34.23according to section
34.24EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
34.25 Sec. 3. Minnesota Statutes 2014, section 273.1393, is amended to read:
34.26273.1393 COMPUTATION OF NET PROPERTY TAXES.
34.27 Notwithstanding any other provisions to the contrary, "net" property taxes are
34.28determined by subtracting the credits in the order listed from the gross tax:
34.29 (1) disaster credit as provided in sections
34.30 (2) powerline credit as provided in section
34.31 (3) agricultural preserves credit as provided in section
34.32 (4) enterprise zone credit as provided in section
34.33 (5) disparity reduction credit;
35.1 (6) conservation tax credit as provided in section
35.2 (7) the school bond credit, as provided in section 273.1387;
35.3 (8) agricultural credit as provided in section
35.4
35.5
35.6
35.7 The combination of all property tax credits must not exceed the gross tax amount.
35.8EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
35.9 Sec. 4. Minnesota Statutes 2014, section 275.065, subdivision 3, is amended to read:
35.10 Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare
35.11and the county treasurer shall deliver after November 10 and on or before November 24
35.12each year, by first class mail to each taxpayer at the address listed on the county's current
35.13year's assessment roll, a notice of proposed property taxes. Upon written request by
35.14the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
35.15instead of on paper or by ordinary mail.
35.16 (b) The commissioner of revenue shall prescribe the form of the notice.
35.17 (c) The notice must inform taxpayers that it contains the amount of property taxes
35.18each taxing authority proposes to collect for taxes payable the following year. In the case of
35.19a town, or in the case of the state general tax, the final tax amount will be its proposed tax.
35.20The notice must clearly state for each city that has a population over 500, county, school
35.21district, regional library authority established under section
35.22taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing
35.23authority in which the budget and levy will be discussed and public input allowed, prior to
35.24the final budget and levy determination. The taxing authorities must provide the county
35.25auditor with the information to be included in the notice on or before the time it certifies
35.26its proposed levy under subdivision 1. The public must be allowed to speak at that
35.27meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
35.28must provide a telephone number for the taxing authority that taxpayers may call if they
35.29have questions related to the notice and an address where comments will be received by
35.30mail, except that no notice required under this section shall be interpreted as requiring the
35.31printing of a personal telephone number or address as the contact information for a taxing
35.32authority. If a taxing authority does not maintain public offices where telephone calls can
35.33be received by the authority, the authority may inform the county of the lack of a public
35.34telephone number and the county shall not list a telephone number for that taxing authority.
35.35 (d) The notice must state for each parcel:
36.1 (1) the market value of the property as determined under section
36.2for computing property taxes payable in the following year and for taxes payable in the
36.3current year as each appears in the records of the county assessor on November 1 of the
36.4current year; and, in the case of residential property, whether the property is classified as
36.5homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
36.6which the market values apply and that the values are final values;
36.7 (2) the items listed below, shown separately by county, city or town, and state
36.8general tax, agricultural homestead credit under section
36.9agricultural credit under section 273.1387, voter approved school levy, other local school
36.10levy, and the sum of the special taxing districts, and as a total of all taxing authorities:
36.11 (i) the actual tax for taxes payable in the current year; and
36.12 (ii) the proposed tax amount.
36.13 If the county levy under clause (2) includes an amount for a lake improvement
36.14district as defined under sections
36.15purpose must be separately stated from the remaining county levy amount.
36.16 In the case of a town or the state general tax, the final tax shall also be its proposed
36.17tax unless the town changes its levy at a special town meeting under section
36.18school district has certified under section
36.19be held in the school district at the November general election, the county auditor must
36.20note next to the school district's proposed amount that a referendum is pending and that, if
36.21approved by the voters, the tax amount may be higher than shown on the notice. In the
36.22case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
36.23listed separately from the remaining amount of the city's levy. In the case of the city of
36.24St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
36.25remaining amount of the city's levy. In the case of Ramsey County, any amount levied
36.26under section
36.27levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
36.28under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
36.29proposed tax levy on the tax capacity subject to the areawide tax must each be stated
36.30separately and not included in the sum of the special taxing districts; and
36.31 (3) the increase or decrease between the total taxes payable in the current year and
36.32the total proposed taxes, expressed as a percentage.
36.33 For purposes of this section, the amount of the tax on homesteads qualifying under
36.34the senior citizens' property tax deferral program under chapter 290B is the total amount
36.35of property tax before subtraction of the deferred property tax amount.
37.1 (e) The notice must clearly state that the proposed or final taxes do not include
37.2the following:
37.3 (1) special assessments;
37.4 (2) levies approved by the voters after the date the proposed taxes are certified,
37.5including bond referenda and school district levy referenda;
37.6 (3) a levy limit increase approved by the voters by the first Tuesday after the first
37.7Monday in November of the levy year as provided under section
37.8 (4) amounts necessary to pay cleanup or other costs due to a natural disaster
37.9occurring after the date the proposed taxes are certified;
37.10 (5) amounts necessary to pay tort judgments against the taxing authority that become
37.11final after the date the proposed taxes are certified; and
37.12 (6) the contamination tax imposed on properties which received market value
37.13reductions for contamination.
37.14 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or
37.15the county treasurer to deliver the notice as required in this section does not invalidate the
37.16proposed or final tax levy or the taxes payable pursuant to the tax levy.
37.17 (g) If the notice the taxpayer receives under this section lists the property as
37.18nonhomestead, and satisfactory documentation is provided to the county assessor by the
37.19applicable deadline, and the property qualifies for the homestead classification in that
37.20assessment year, the assessor shall reclassify the property to homestead for taxes payable
37.21in the following year.
37.22 (h) In the case of class 4 residential property used as a residence for lease or rental
37.23periods of 30 days or more, the taxpayer must either:
37.24 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
37.25renter, or lessee; or
37.26 (2) post a copy of the notice in a conspicuous place on the premises of the property.
37.27 The notice must be mailed or posted by the taxpayer by November 27 or within
37.28three days of receipt of the notice, whichever is later. A taxpayer may notify the county
37.29treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
37.30which the notice must be mailed in order to fulfill the requirements of this paragraph.
37.31 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
37.32districts" means the following taxing districts in the seven-county metropolitan area that
37.33levy a property tax for any of the specified purposes listed below:
37.34 (1) Metropolitan Council under section
38.1 (2) Metropolitan Airports Commission under section
38.2and
38.3 (3) Metropolitan Mosquito Control Commission under section
38.4 For purposes of this section, any levies made by the regional rail authorities in the
38.5county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
38.6398A shall be included with the appropriate county's levy.
38.7 (j) The governing body of a county, city, or school district may, with the consent
38.8of the county board, include supplemental information with the statement of proposed
38.9property taxes about the impact of state aid increases or decreases on property tax
38.10increases or decreases and on the level of services provided in the affected jurisdiction.
38.11This supplemental information may include information for the following year, the current
38.12year, and for as many consecutive preceding years as deemed appropriate by the governing
38.13body of the county, city, or school district. It may include only information regarding:
38.14 (1) the impact of inflation as measured by the implicit price deflator for state and
38.15local government purchases;
38.16 (2) population growth and decline;
38.17 (3) state or federal government action; and
38.18 (4) other financial factors that affect the level of property taxation and local services
38.19that the governing body of the county, city, or school district may deem appropriate to
38.20include.
38.21 The information may be presented using tables, written narrative, and graphic
38.22representations and may contain instruction toward further sources of information or
38.23opportunity for comment.
38.24EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
38.25 Sec. 5. Minnesota Statutes 2014, section 275.07, subdivision 2, is amended to read:
38.26 Subd. 2. School district
38.27In school districts lying in more than one county, the clerk shall certify the tax levied to the
38.28auditor of the county in which the administrative offices of the school district are located.
38.29(b) The district must identify the portion of the school district levy that is levied for
38.30debt service at the time the levy is certified under this section. For the purposes of this
38.31paragraph, "levied for debt service" means levies authorized under sections 123B.53,
38.32123B.535, and 123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt
38.33excess levy reductions under section 475.61, subdivision 4, excluding debt service
38.34amounts necessary for repayment of other postemployment benefits under section 475.52,
38.35subdivision 6.
39.1EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
39.2 Sec. 6. Minnesota Statutes 2014, section 275.08, subdivision 1b, is amended to read:
39.3 Subd. 1b. Computation of tax rates. (a) The amounts certified to be levied against
39.4net tax capacity under section
39.5divided by the total net tax capacity of all taxable properties within the local government
39.6unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate,
39.7multiplied by each property's net tax capacity shall be each property's net tax capacity tax
39.8for that local government unit before reduction by any credits.
39.9(b) The auditor must also determine the school debt tax rate for each school district
39.10equal to (1) the school debt service levy certified under section 275.07, subdivision 2,
39.11divided by (2) the total net tax capacity of all taxable property within the district.
39.12(c) Any amount certified to the county auditor to be levied against market value shall
39.13be divided by the total referendum market value of all taxable properties within the taxing
39.14district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by
39.15each property's referendum market value shall be each property's new referendum tax
39.16before reduction by any credits. For the purposes of this subdivision, "referendum market
39.17value" means the market value as defined in section
39.18EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
39.19 Sec. 7. Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read:
39.20 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing
39.21of the tax statements. The commissioner of revenue shall prescribe the form of the property
39.22tax statement and its contents. The tax statement must not state or imply that property tax
39.23credits are paid by the state of Minnesota. The statement must contain a tabulated statement
39.24of the dollar amount due to each taxing authority and the amount of the state tax from the
39.25parcel of real property for which a particular tax statement is prepared. The dollar amounts
39.26attributable to the county, the state tax, the voter approved school tax, the other local school
39.27tax, the township or municipality, and the total of the metropolitan special taxing districts
39.28as defined in section
39.29The amounts due all other special taxing districts, if any, may be aggregated except that
39.30any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
39.31Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
39.32line directly under the appropriate county's levy. If the county levy under this paragraph
39.33includes an amount for a lake improvement district as defined under sections
40.1remaining county levy amount. In the case of Ramsey County, if the county levy under this
40.2paragraph includes an amount for public library service under section
40.3attributable for that purpose may be separated from the remaining county levy amount.
40.4The amount of the tax on homesteads qualifying under the senior citizens' property tax
40.5deferral program under chapter 290B is the total amount of property tax before subtraction
40.6of the deferred property tax amount. The amount of the tax on contamination value
40.7imposed under sections
40.8amounts, including the dollar amount of any special assessments, may be rounded to the
40.9nearest even whole dollar. For purposes of this section whole odd-numbered dollars may
40.10be adjusted to the next higher even-numbered dollar. The amount of market value excluded
40.11under section
40.12 (b) The property tax statements for manufactured homes and sectional structures
40.13taxed as personal property shall contain the same information that is required on the
40.14tax statements for real property.
40.15 (c) Real and personal property tax statements must contain the following information
40.16in the order given in this paragraph. The information must contain the current year tax
40.17information in the right column with the corresponding information for the previous year
40.18in a column on the left:
40.19 (1) the property's estimated market value under section
40.20 (2) the property's homestead market value exclusion under section
40.21subdivision 35;
40.22 (3) the property's taxable market value under section
40.23 (4) the property's gross tax, before credits;
40.24 (5) for
40.25273.1384 and 273.1387;
40.26 (6) any credits received under sections
40.28credit received under section
40.29tax relief"; and
40.30 (7) the net tax payable in the manner required in paragraph (a).
40.31 (d) If the county uses envelopes for mailing property tax statements and if the county
40.32agrees, a taxing district may include a notice with the property tax statement notifying
40.33taxpayers when the taxing district will begin its budget deliberations for the current
40.34year, and encouraging taxpayers to attend the hearings. If the county allows notices to
40.35be included in the envelope containing the property tax statement, and if more than
40.36one taxing district relative to a given property decides to include a notice with the tax
41.1statement, the county treasurer or auditor must coordinate the process and may combine
41.2the information on a single announcement.
41.3EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.
41.4 Sec. 8. [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR
41.5CERTAIN OUT-OF-HOME PLACEMENT.
41.6 Subdivision 1. Definition. When used in this section, "out-of-home placement"
41.7means 24-hour substitute care for an Indian child as defined by section 260C.007,
41.8subdivision 21, placed under the Indian Child Welfare Act (ICWA) and chapter 260C,
41.9away from the child's parent or guardian and for whom the county social services agency
41.10or county correctional agency has been assigned responsibility for the child's placement
41.11and care, which includes placement in foster care under section 260C.007, subdivision
41.1218, and a correctional facility pursuant to a court order.
41.13 Subd. 2. Determination of nonfederal share of costs. (a) By January 1, 2017, each
41.14county shall report the following information to the commissioners of human services and
41.15corrections: (1) the separate amounts paid out of its social service agency and its corrections
41.16budget for out-of-home placement of children under the ICWA in calendar years 2013,
41.172014, and 2015; and (2) the number of case days associated with the expenditures from
41.18each budget. By March 15, 2017, the commissioner of human services, in consultation with
41.19the commissioner of corrections, shall certify to the commissioner of revenue and to the
41.20legislative committees responsible for local government aids and out-of-home placement
41.21funding, whether the data reported under this subdivision accurately reflects total
41.22expenditures by counties for out-of-home placement costs of children under the ICWA.
41.23(b) By January 1, 2019, and each January 1 thereafter, each county shall report to the
41.24commissioners of human services and corrections the separate amounts paid out of its
41.25social service agency and its corrections budget for out-of-home placement of children
41.26under the ICWA in the calendar years two years before the current calendar year along
41.27with the number of case days associated with the expenditures from each budget.
41.28(c) Until the commissioner of human services develops another mechanism for
41.29collecting and verifying data on out-of-home placements of children under the ICWA, and
41.30the legislature authorizes the use of that data, the data collected under this subdivision
41.31must be used to calculate payments under subdivision 3. The commissioner of human
41.32services shall certify the nonfederal out-of-home placement costs for the three prior
41.33calendar years for each county to the commissioner of revenue by June 1 of the year
41.34prior to the aid payment.
42.1 Subd. 3. Aid payments to counties. For aids payable in calendar year 2018 and
42.2thereafter, the commissioner of revenue shall reimburse each county for 100 percent of
42.3the nonfederal share of the cost of out-of-home placement of children under the ICWA
42.4provided the commissioner of human services, in consultation with the commissioner
42.5of corrections, certifies to the commissioner of revenue that accurate data is available
42.6to make the aid determination under this section. The amount of reimbursement is the
42.7county's average nonfederal share of the cost for out-of-home placement of children
42.8under the ICWA for the most recent three calendar years for which data is available.
42.9The commissioner shall pay the aid under the schedule used for local government aid
42.10payments under section 477A.015.
42.11 Subd. 4. Aid payments to tribes. (a) By January 1, 2017, and each year
42.12thereafter, each tribe must certify to the commissioner of revenue the amount of federal
42.13reimbursement received by the tribe for out-of-home placement of children under the
42.14ICWA for the immediately preceding three calendar years. The commissioner of revenue
42.15shall prescribe the format of the certification. For purposes of this section, "tribe" has the
42.16meaning provided in section 260.755, subdivision 12.
42.17(b) The amount of reimbursement to the tribe shall be the greater of: (1) five
42.18percent of the average reimbursement amount received from the federal government for
42.19out-of-home placement costs for the most recent three calendar years; or (2) $200,000.
42.20The commissioner shall pay the aid under this section under the schedule used for local
42.21government aid payments under section 477A.015.
42.22 Subd. 5. Appropriation. An amount sufficient to pay aid under this section is
42.23annually appropriated to the commissioner of revenue from the general fund.
42.24EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.
42.25 Sec. 9. Minnesota Statutes 2015 Supplement, section 477A.015, is amended to read:
42.26477A.015 PAYMENT DATES.
42.27(a) The commissioner of revenue shall make the payments of local government aid
42.28to affected taxing authorities in two installments on July 20 and December 26 annually.
42.29(b) Notwithstanding paragraph (a), for aids payable in 2017 only, the commissioner
42.30of revenue shall make payments of the aid payable under section 477A.013, subdivision
42.319, in three installments as follows: (1) 6.5 percent of the aid shall be paid on June 15,
42.322017; (2) 43.5 percent of the aid shall be paid on July 20, 2017; and (3) 50 percent of the
42.33aid shall be paid on December 26, 2017.
43.1(c) When the commissioner of public safety determines that a local government has
43.2suffered financial hardship due to a natural disaster, the commissioner of public safety
43.3shall notify the commissioner of revenue, who shall make payments of aids under sections
43.5after the determination is made but not before July 20.
43.6(d) The commissioner may pay all or part of the payments of aids under sections
43.8government requests such payment as being necessary for meeting its cash flow needs.
43.9EFFECTIVE DATE.This section is effective beginning with aids payable in 2017.
43.10 Sec. 10. Minnesota Statutes 2014, section 477A.017, subdivision 2, is amended to read:
43.11 Subd. 2. State auditor's duties. The state auditor shall prescribe uniform financial
43.12accounting and reporting standards in conformity with national standards to be applicable
43.13to cities and towns of more than 2,500 population and uniform reporting standards to be
43.14applicable to cities and towns of less than 2,500 population.
43.15EFFECTIVE DATE.This section applies to reporting of financial information for
43.16calendar year 2016 and thereafter.
43.17 Sec. 11. Minnesota Statutes 2014, section 477A.017, subdivision 3, is amended to read:
43.18 Subd. 3. Conformity. Other law to the contrary notwithstanding, in order to receive
43.19distributions under sections
43.20conform to the standards set in subdivision 2 in making all financial reports required to be
43.21made to the state auditor
43.22EFFECTIVE DATE.This section applies to reporting of financial information for
43.23aids payable in 2017 and thereafter.
43.24 Sec. 12. Minnesota Statutes 2015 Supplement, section 477A.03, subdivision 2a,
43.25is amended to read:
43.26 Subd. 2a. Cities. The total aid paid under section
43.27$516,898,012 for aids payable in 2015. For aids payable in 2016
43.28aid paid under section
43.29and thereafter, the total aid paid under section 477A.013, subdivision 9, is $539,398,012.
43.30EFFECTIVE DATE.This section is effective for aids payable in calendar year
43.312017 and thereafter.
44.1 Sec. 13. Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read:
44.2 Subd. 2b. Counties. (a) For aids payable in 2014
44.3total aid payable under section
44.4payable in 2017 through 2024, the total aid payable under section 477A.0124, subdivision
44.53, is $108,795,000, of which $3,000,000 shall be allocated as required under Laws 2014,
44.6chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, the total aid
44.7payable under section 477A.0124, subdivision 3, is $105,795,000. Each calendar year,
44.8$500,000 of this appropriation shall be retained by the commissioner of revenue to
44.9make reimbursements to the commissioner of management and budget for payments
44.10made under section
44.11associated with court-ordered counsel under section
44.12used for reimbursement in a year shall be included in the next distribution of county
44.13need aid that is certified to the county auditors for the purpose of property tax reduction
44.14for the next taxes payable year.
44.15 (b) For aids payable in
44.17the total aid payable under section 477A.0124, subdivision 4, is $109,909,575. The
44.18commissioner of revenue shall transfer to the commissioner of management and budget
44.19$207,000 annually for the cost of preparation of local impact notes as required by section
44.21to the commissioner of education $7,000 annually for the cost of preparation of local
44.22impact notes for school districts as required by section
44.23revenue shall deduct the amounts transferred under this paragraph from the appropriation
44.24under this paragraph. The amounts transferred are appropriated to the commissioner of
44.25management and budget and the commissioner of education respectively.
44.26EFFECTIVE DATE.This section is effective for aids payable in 2017 and thereafter.
44.27 Sec. 14. [477A.09] MAXIMUM EFFORT LOAN AID.
44.28For fiscal years 2018 through 2022, each school district with a maximum effort loan
44.29under sections 126C.61 to 126C.72 outstanding as of June 30, 2016, is eligible for an aid
44.30payment equal to one-fifth of the amount of interest that was paid on the loan between
44.31December 1, 1997, and June 30, 2016. Aid payments under this section must be used to
44.32reduce property taxes levied on net tax capacity within the district. Aid under this section
44.33must be paid in fiscal years 2018 through 2022, in the manner provided under section
44.34127A.45, subdivisions 9 and 13. An amount sufficient to make aid payments under this
44.35section is annually appropriated from the general fund to the commissioner of education.
45.1EFFECTIVE DATE.This section is effective for fiscal years 2018 and thereafter.
45.2 Sec. 15. [477A.21] RIPARIAN PROTECTION AID.
45.3 Subdivision 1. Definitions. (a) When used in this section, the following terms have
45.4the meanings given them in this subdivision.
45.5(b) "Public water basins" has the meaning provided in section 103G.005, subdivision
45.615, clauses (1) to (8) and (11).
45.7(c) "Public watercourses" has the meaning provided in section 103G.005,
45.8subdivision 15, clauses (9) and (10).
45.9 Subd. 2. Certification. The Board of Water and Soil Resources must certify to the
45.10commissioner of revenue by July 1 of each year which counties and watershed districts
45.11have affirmed their jurisdiction under section 103F.48, subdivision 7, paragraph (b), and
45.12the proportion of each county's land area that is contained in each watershed district
45.13within the county. On or before July 1 of each year, the commissioner of natural resources
45.14shall certify to the commissioner of revenue the statewide and countywide total of miles of
45.15shoreline of public waters basins, the number of centerline miles of public watercourses,
45.16and the miles of public drainage system ditches.
45.17 Subd. 3. Distribution. (a) A county that is certified under subdivision 2 or that
45.18portion of a county containing a watershed district certified under subdivision 2 is eligible
45.19to receive aid under this section to enforce and implement the riparian protection and water
45.20quality practices under section 103F.48. The commissioner shall calculate a preliminary
45.21aid for all counties that shall equal: (1) each county's share of the total number of acres
45.22in the state classified as class 2a under section 273.13, subdivision 23, divided by two;
45.23plus (2) each county's share of the number of miles of shoreline of public water basins,
45.24each county's share of the number of centerline miles of public watercourses, and each
45.25county's share of the number of miles of public drainage system ditches established under
45.26chapter 103E, divided by two; multiplied by (3) $10,000,000.
45.27(b) Aid to a county shall not be greater than $200,000 or less than $45,000. If the
45.28sum of the preliminary aids payable to counties under paragraph (a) is greater or less than
45.29the appropriation under subdivision 5, the commissioner of revenue shall calculate the
45.30percentage adjustment necessary so that the total of the aid under paragraph (a) equals the
45.31total amount available for aid under subdivision 5.
45.32(c) If only a portion of a county is certified as eligible to receive aid under subdivision
45.332, the aid otherwise payable to that county under this section shall be multiplied by a
45.34fraction, the numerator of which is the area of the certified watershed district contained
45.35within the county and the denominator of which is the total area of the county.
46.1(d) Any aid that would otherwise be paid to a county or portion of a county that is
46.2not certified under subdivision 2 shall be paid to the Board of Water and Soil Resources
46.3for the purpose of enforcing and implementing the riparian protection and water quality
46.4practices under section 103F.48.
46.5 Subd. 4. Payments. The commissioner of revenue must compute the amount of
46.6riparian protection aid payable to each eligible county and to the Board of Water and Soil
46.7Resources under this section. On or before August 1 of each year, the commissioner shall
46.8certify the amount to be paid to each county in the following year. The commissioner shall
46.9pay riparian protection aid to counties and the Board of Water and Soil Resources in the
46.10same manner and at the same time as aid payments under section 477A.015.
46.11 Subd. 5. Appropriation. $10,000,000 for aids payable in 2017 and each year
46.12thereafter is appropriated from the general fund to the commissioner of revenue to make
46.13the payments required under this section.
46.14EFFECTIVE DATE.This section is effective beginning with aids payable in 2017
46.15and thereafter.
46.16 Sec. 16. Laws 2001, First Special Session chapter 5, article 3, section 86, is amended
46.17to read:
46.18 Sec. 86. RED RIVER WATERSHED MANAGEMENT BOARD; PAYMENT
46.19IN LIEU OF TAXES.
46.20 (a) The Red River watershed management board may spend money from its general
46.21fund to compensate counties and townships for lost tax revenue from land that becomes
46.22tax exempt after it is acquired by the board or a member watershed district for flood
46.23damage reduction project. The amount that may be paid under this section to a county
46.24or township must not exceed the tax that was payable to that taxing jurisdiction on the
46.25land in the last taxes payable year before the land became exempt due to the acquisition,
46.26not to exceed
46.27payment, or in equal annual installments over a period that does not exceed 20 years. A
46.28member watershed district of the Red River management board may spend money from its
46.29construction fund for the purposes described in this section.
46.30 (b) For the purposes of this section, "Red River watershed management board"
46.31refers to the board established by Laws 1976, chapter 162, section 1, as amended by Laws
46.321982, chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special
46.33Session chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws
46.341998, chapter 389, article 3, section 29.
47.1EFFECTIVE DATE.This section is effective for aids payable in calendar year
47.22016 and thereafter.
47.3 Sec. 17. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
47.4Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of
47.5Oslo shall receive the portion of its aid payment for calendar year 2013 under Minnesota
47.6Statutes, section 477A.013, that was withheld under Minnesota Statutes, section
47.7477A.017, subdivision 3, provided that the state auditor certifies to the commissioner
47.8of revenue that it received audited financial statements from the city for calendar year
47.92012 by December 31, 2013. The commissioner of revenue shall make a payment of
47.10$37,473.50 with the first payment of aids under Minnesota Statutes, section 477A.015.
47.11$37,473.50 is appropriated from the general fund to the commissioner of revenue in fiscal
47.12year 2017 to make this payment.
47.13EFFECTIVE DATE.This section is effective the day following final enactment.
47.14 Sec. 18. 2014 AID PENALTY FORGIVENESS.
47.15(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities
47.16of Dundee, Jeffers, and Woodstock shall receive all of its calendar year 2014 aid payment
47.17that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided
47.18that the state auditor certifies to the commissioner of revenue that the city complied with
47.19all reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for
47.20calendar years 2013 and 2014 by June 1, 2015.
47.21(b) The commissioner of revenue shall make payment to each city no later than June
47.2230, 2016. Up to $101,570 is appropriated from the general fund to the commissioner of
47.23revenue in fiscal year 2017 to make the payments under this section.
47.24EFFECTIVE DATE.This section is effective the day following final enactment.
47.25 Sec. 19. BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
47.26In the first aid payable year in which a city that incorporated on October 13, 2015,
47.27qualifies for aid under Minnesota Statutes, section 477A.013, subdivision 8, the city's
47.28formula aid in the previous year shall be deemed to equal $115 multiplied by its population.
47.29EFFECTIVE DATE.This section is effective for aids payable in 2017 and thereafter.
47.30 Sec. 20. REPEALER.
47.31Minnesota Statutes 2014, section 477A.20, is repealed.
48.1EFFECTIVE DATE.This section is effective the day following final enactment.
48.4 Section 1. Minnesota Statutes 2014, section 136A.129, subdivision 3, is amended to
48.5read:
48.6 Subd. 3. Program components. (a) An intern must be an eligible student who has
48.7been admitted to a major program that is related to the intern experience as determined
48.8by the eligible institution.
48.9(b) To participate in the program, an eligible institution must:
48.10(1) enter into written agreements with eligible employers to provide internships that
48.11are at least eight weeks long and located in greater Minnesota; and
48.12(2) provide academic credit for the successful completion of the internship or ensure
48.13that it fulfills requirements necessary to complete a vocational technical education program.
48.14(c) To participate in the program, an eligible employer must enter into a written
48.15agreement with an eligible institution specifying that the intern:
48.16(1)
48.17
48.18the agreement;
48.19
48.20
48.21
48.22
48.23for a period of at least eight weeks; and
48.24
48.25(d) The written agreement between the eligible institution and the eligible employer
48.26must certify a credit amount to the employer, not to exceed $2,000 per intern. The total
48.27dollar amount of credits that an eligible institution certifies to eligible employers in a
48.28calendar year may not exceed the amount of its allocation under subdivision 4.
48.29(e) Participating eligible institutions and eligible employers must report annually to
48.30the office. The report must include at least the following:
48.31(1) the number of interns hired;
48.32(2) the number of hours and weeks worked by interns; and
48.33(3) the compensation paid to interns.
48.34
48.35
49.1EFFECTIVE DATE.This section is effective for taxable years beginning after
49.2December 31, 2015.
49.3 Sec. 2. Minnesota Statutes 2015 Supplement, section 289A.02, subdivision 7, is
49.4amended to read:
49.5 Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal
49.6Revenue Code" means the Internal Revenue Code of 1986, as amended through December
49.731,
49.8EFFECTIVE DATE.This section is effective the day following final enactment.
49.9 Sec. 3. Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read:
49.10 Subd. 7. Resident. (a) The term "resident" means any individual domiciled
49.11in Minnesota, except that an individual is not a "resident" for the period of time that
49.12the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal
49.13Revenue Code, if the qualified individual notifies the county within three months of
49.14moving out of the country that homestead status be revoked for the Minnesota residence
49.15of the qualified individual, and the property is not classified as a homestead while the
49.16individual remains a qualified individual.
49.17(b) "Resident" also means any individual domiciled outside the state who maintains
49.18a place of abode in the state and spends in the aggregate more than one-half of the tax
49.19year in Minnesota, unless:
49.20(1) the individual or the spouse of the individual is in the armed forces of the United
49.21States; or
49.22(2) the individual is covered under the reciprocity provisions in section
49.23For purposes of this subdivision, presence within the state for any part of a calendar
49.24day constitutes a day spent in the state. A day does not qualify as a Minnesota day if
49.25the taxpayer traveled from a place outside of Minnesota primarily for and essential to
49.26obtaining medical care, as defined in Internal Revenue Code, section 213(d)(1)(A), in
49.27Minnesota for the taxpayer, spouse, or a dependent of the taxpayer and the travel expense
49.28is allowed under Internal Revenue Code, section 213(d)(1)(B), and is claimed by the
49.29taxpayer as a deductible expense. Individuals shall keep adequate records to substantiate
49.30the days spent outside the state.
49.31The term "abode" means a dwelling maintained by an individual, whether or not
49.32owned by the individual and whether or not occupied by the individual, and includes a
49.33dwelling place owned or leased by the individual's spouse.
50.1(c) In determining where an individual is domiciled, neither the commissioner nor
50.2any court shall consider:
50.3(1) charitable contributions made by
50.4
50.5(2) the location of the individual's attorney, certified public accountant, or financial
50.6adviser; or
50.7(3) the place of business of a financial institution at which the individual applies for
50.8any new type of credit or at which the individual opens or maintains any type of account.
50.9(d) For purposes of this subdivision, the following terms have the meanings given
50.10them:
50.11(1) "financial adviser" means:
50.12(i) an individual or business entity engaged in business as a certified financial
50.13planner, registered investment adviser, licensed insurance producer or agent, or a
50.14registered securities broker-dealer representative; or
50.15(ii) a financial institution providing services related to trust or estate administration,
50.16investment management, or financial planning; and
50.17(2) "financial institution" means a financial institution as defined in section 47.015,
50.18subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer
50.19under the Securities and Exchange Act of 1934.
50.20EFFECTIVE DATE.This section is effective for taxable years beginning after
50.21December 31, 2015, except the amendment to paragraph (b) is effective for taxable years
50.22beginning after December 31, 2016.
50.23 Sec. 4. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 19, is
50.24amended to read:
50.25 Subd. 19. Net income. The term "net income" means the federal taxable income,
50.26as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
50.27date named in this subdivision, incorporating the federal effective dates of changes to the
50.28Internal Revenue Code and any elections made by the taxpayer in accordance with the
50.29Internal Revenue Code in determining federal taxable income for federal income tax
50.30purposes, and with the modifications provided in subdivisions 19a to 19f.
50.31 In the case of a regulated investment company or a fund thereof, as defined in section
50.32851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
50.33company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
50.34except that:
51.1 (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
51.2Revenue Code does not apply;
51.3 (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
51.4Revenue Code must be applied by allowing a deduction for capital gain dividends and
51.5exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
51.6Revenue Code; and
51.7 (3) the deduction for dividends paid must also be applied in the amount of any
51.8undistributed capital gains which the regulated investment company elects to have treated
51.9as provided in section 852(b)(3)(D) of the Internal Revenue Code.
51.10 The net income of a real estate investment trust as defined and limited by section
51.11856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
51.12taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
51.13 The net income of a designated settlement fund as defined in section 468B(d) of
51.14the Internal Revenue Code means the gross income as defined in section 468B(b) of the
51.15Internal Revenue Code.
51.16 The Internal Revenue Code of 1986, as amended through December 31,
51.17shall be in effect for taxable years beginning after December 31, 1996.
51.18 Except as otherwise provided, references to the Internal Revenue Code in
51.19subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
51.20the applicable year.
51.21EFFECTIVE DATE.This section is effective the day following final enactment,
51.22except the changes incorporated by federal changes are effective retroactively at the same
51.23time as the changes were effective for federal purposes.
51.24 Sec. 5. Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read:
51.25 Subd. 19a. Additions to federal taxable income. For individuals, estates, and
51.26trusts, there shall be added to federal taxable income:
51.27 (1)(i) interest income on obligations of any state other than Minnesota or a political
51.28or governmental subdivision, municipality, or governmental agency or instrumentality
51.29of any state other than Minnesota exempt from federal income taxes under the Internal
51.30Revenue Code or any other federal statute; and
51.31 (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
51.32Code, except:
51.33(A) the portion of the exempt-interest dividends exempt from state taxation under
51.34the laws of the United States; and
52.1(B) the portion of the exempt-interest dividends derived from interest income
52.2on obligations of the state of Minnesota or its political or governmental subdivisions,
52.3municipalities, governmental agencies or instrumentalities, but only if the portion of the
52.4exempt-interest dividends from such Minnesota sources paid to all shareholders represents
52.595 percent or more of the exempt-interest dividends, including any dividends exempt
52.6under subitem (A), that are paid by the regulated investment company as defined in section
52.7851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
52.8defined in section 851(g) of the Internal Revenue Code, making the payment; and
52.9 (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
52.10government described in section 7871(c) of the Internal Revenue Code shall be treated as
52.11interest income on obligations of the state in which the tribe is located;
52.12 (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or
52.13accrued within the taxable year under this chapter and the amount of taxes based on net
52.14income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or
52.15to any province or territory of Canada, to the extent allowed as a deduction under section
52.1663(d) of the Internal Revenue Code, but the addition may not be more than the amount
52.17by which the state itemized deduction exceeds the amount of the standard deduction as
52.18defined in section 63(c) of the Internal Revenue Code, minus any addition that would have
52.19been required under clause (17) if the taxpayer had claimed the standard deduction. For
52.20the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are
52.21the last itemized deductions disallowed under clause (15);
52.22 (3) the capital gain amount of a lump-sum distribution to which the special tax under
52.23section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
52.24 (4) the amount of income taxes paid or accrued within the taxable year under this
52.25chapter and taxes based on net income paid to any other state or any province or territory
52.26of Canada, to the extent allowed as a deduction in determining federal adjusted gross
52.27income. For the purpose of this paragraph, income taxes do not include the taxes imposed
52.28by sections
52.29 (5) the amount of expense, interest, or taxes disallowed pursuant to section
52.31allowed under subdivision 19b, clause (1);
52.32 (6) the amount of a partner's pro rata share of net income which does not flow
52.33through to the partner because the partnership elected to pay the tax on the income under
52.34section 6242(a)(2) of the Internal Revenue Code;
52.35 (7) 80 percent of the depreciation deduction allowed under section 168(k) of the
52.36Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
53.1in the taxable year generates a deduction for depreciation under section 168(k) and the
53.2activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
53.3the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
53.4limited to excess of the depreciation claimed by the activity under section 168(k) over the
53.5amount of the loss from the activity that is not allowed in the taxable year. In succeeding
53.6taxable years when the losses not allowed in the taxable year are allowed, the depreciation
53.7under section 168(k) is allowed;
53.8 (8) 80 percent of the amount by which the deduction allowed by section 179 of the
53.9Internal Revenue Code exceeds the deduction allowable
53.10section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;
53.11 (9) to the extent deducted in computing federal taxable income, the amount of the
53.12deduction allowable under section 199 of the Internal Revenue Code;
53.13 (10) the amount of expenses disallowed under section 290.10, subdivision 2;
53.14 (11) for taxable years beginning before January 1, 2010, the amount deducted for
53.15qualified tuition and related expenses under section 222 of the Internal Revenue Code, to
53.16the extent deducted from gross income;
53.17 (12) for taxable years beginning before January 1, 2010, the amount deducted for
53.18certain expenses of elementary and secondary school teachers under section 62(a)(2)(D)
53.19of the Internal Revenue Code, to the extent deducted from gross income;
53.20(13) discharge of indebtedness income resulting from reacquisition of business
53.21indebtedness and deferred under section 108(i) of the Internal Revenue Code;
53.22(14) changes to federal taxable income attributable to a net operating loss that the
53.23taxpayer elected to carry back for more than two years for federal purposes but for which
53.24the losses can be carried back for only two years under section
53.2511
53.26(15) the amount of disallowed itemized deductions, but the amount of disallowed
53.27itemized deductions plus the addition required under clause (2) may not be more than the
53.28amount by which the itemized deductions as allowed under section 63(d) of the Internal
53.29Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of
53.30the Internal Revenue Code, and reduced by any addition that would have been required
53.31under clause (17) if the taxpayer had claimed the standard deduction:
53.32(i) the amount of disallowed itemized deductions is equal to the lesser of:
53.33(A) three percent of the excess of the taxpayer's federal adjusted gross income
53.34over the applicable amount; or
53.35(B) 80 percent of the amount of the itemized deductions otherwise allowable to the
53.36taxpayer under the Internal Revenue Code for the taxable year;
54.1(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a
54.2married individual filing a separate return. Each dollar amount shall be increased by
54.3an amount equal to:
54.4(A) such dollar amount, multiplied by
54.5(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
54.6Revenue Code for the calendar year in which the taxable year begins, by substituting
54.7"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;
54.8(iii) the term "itemized deductions" does not include:
54.9(A) the deduction for medical expenses under section 213 of the Internal Revenue
54.10Code;
54.11(B) any deduction for investment interest as defined in section 163(d) of the Internal
54.12Revenue Code; and
54.13(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or
54.14theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue
54.15Code or for losses described in section 165(d) of the Internal Revenue Code;
54.16(16) the amount of disallowed personal exemptions for taxpayers with federal
54.17adjusted gross income over the threshold amount:
54.18(i) the disallowed personal exemption amount is equal to the number of personal
54.19exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied
54.20by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the
54.21Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal
54.22Revenue Code, and by the applicable percentage;
54.23(ii) "applicable percentage" means two percentage points for each $2,500 (or
54.24fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
54.25year exceeds the threshold amount. In the case of a married individual filing a separate
54.26return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In
54.27no event shall the applicable percentage exceed 100 percent;
54.28(iii) the term "threshold amount" means:
54.29(A) $150,000 in the case of a joint return or a surviving spouse;
54.30(B) $125,000 in the case of a head of a household;
54.31(C) $100,000 in the case of an individual who is not married and who is not a
54.32surviving spouse or head of a household; and
54.33(D) $75,000 in the case of a married individual filing a separate return; and
54.34(iv) the thresholds shall be increased by an amount equal to:
54.35(A) such dollar amount, multiplied by
55.1(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
55.2Revenue Code for the calendar year in which the taxable year begins, by substituting
55.3"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and
55.4(17) to the extent deducted in the computation of federal taxable income, for taxable
55.5years beginning after December 31, 2010, and before January 1, 2014, the difference
55.6between the standard deduction allowed under section 63(c) of the Internal Revenue Code
55.7and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue
55.8Code as amended through December 1, 2010.
55.9EFFECTIVE DATE.This section is effective the day following final enactment,
55.10except the changes incorporated by federal changes are effective retroactively at the same
55.11time as the changes were effective for federal purposes.
55.12 Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:
55.13 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
55.14and trusts, there shall be subtracted from federal taxable income:
55.15 (1) net interest income on obligations of any authority, commission, or
55.16instrumentality of the United States to the extent includable in taxable income for federal
55.17income tax purposes but exempt from state income tax under the laws of the United States;
55.18 (2) if included in federal taxable income, the amount of any overpayment of income
55.19tax to Minnesota or to any other state, for any previous taxable year, whether the amount
55.20is received as a refund or as a credit to another taxable year's income tax liability;
55.21 (3) the amount paid to others, less the amount used to claim the credit allowed under
55.22section
55.23to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
55.24transportation of each qualifying child in attending an elementary or secondary school
55.25situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
55.26resident of this state may legally fulfill the state's compulsory attendance laws, which
55.27is not operated for profit, and which adheres to the provisions of the Civil Rights Act
55.28of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
55.29tuition as defined in section
55.30"textbooks" includes books and other instructional materials and equipment purchased
55.31or leased for use in elementary and secondary schools in teaching only those subjects
55.32legally and commonly taught in public elementary and secondary schools in this state.
55.33Equipment expenses qualifying for deduction includes expenses as defined and limited in
55.34section
55.35books and materials used in the teaching of religious tenets, doctrines, or worship, the
56.1purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
56.2or materials for, or transportation to, extracurricular activities including sporting events,
56.3musical or dramatic events, speech activities, driver's education, or similar programs. No
56.4deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
56.5the qualifying child's vehicle to provide such transportation for a qualifying child. For
56.6purposes of the subtraction provided by this clause, "qualifying child" has the meaning
56.7given in section 32(c)(3) of the Internal Revenue Code;
56.8 (4) income as provided under section
56.9 (5) to the extent included in federal adjusted gross income, income realized on
56.10disposition of property exempt from tax under section
56.11 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
56.12of the Internal Revenue Code in determining federal taxable income by an individual
56.13who does not itemize deductions for federal income tax purposes for the taxable year, an
56.14amount equal to 50 percent of the excess of charitable contributions over $500 allowable
56.15as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
56.16under the provisions of Public Law 109-1 and Public Law 111-126;
56.17 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
56.18qualify for a credit under section
56.19of subnational foreign taxes for the taxable year, but not to exceed the total subnational
56.20foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
56.21"federal foreign tax credit" means the credit allowed under section 27 of the Internal
56.22Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
56.23under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
56.24the extent they exceed the federal foreign tax credit;
56.25 (8) in each of the five tax years immediately following the tax year in which an
56.26addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a
56.27shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
56.28delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
56.29of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
56.30clause (12), in the case of a shareholder of an S corporation, minus the positive value of
56.31any net operating loss under section 172 of the Internal Revenue Code generated for the
56.32tax year of the addition. The resulting delayed depreciation cannot be less than zero;
56.33 (9) job opportunity building zone income as provided under section
56.34 (10) to the extent included in federal taxable income, the amount of compensation
56.35paid to members of the Minnesota National Guard or other reserve components of the
56.36United States military for active service, including compensation for services performed
57.1under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
57.2service" means (i) state active service as defined in section
57.3(1); or (ii) federally funded state active service as defined in section
57.45b
57.5subdivision 3
57.6 (11) to the extent included in federal taxable income, the amount of compensation
57.7paid to Minnesota residents who are members of the armed forces of the United States
57.8or United Nations for active duty performed under United States Code, title 10; or the
57.9authority of the United Nations;
57.10 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
57.11qualified donor's donation, while living, of one or more of the qualified donor's organs
57.12to another person for human organ transplantation. For purposes of this clause, "organ"
57.13means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
57.14"human organ transplantation" means the medical procedure by which transfer of a human
57.15organ is made from the body of one person to the body of another person; "qualified
57.16expenses" means unreimbursed expenses for both the individual and the qualified donor
57.17for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
57.18may be subtracted under this clause only once; and "qualified donor" means the individual
57.19or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
57.20individual may claim the subtraction in this clause for each instance of organ donation for
57.21transplantation during the taxable year in which the qualified expenses occur;
57.22 (13)
57.23
57.24
57.25
57.26
57.27
57.28
57.29
57.30provided under section 290.0803, subdivision 3;
57.31 (14) to the extent included in the federal taxable income of a nonresident of
57.32Minnesota, compensation paid to a service member as defined in United States Code, title
57.3310, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
57.34Act, Public Law 108-189, section 101(2);
57.35 (15) to the extent included in federal taxable income, the amount of national service
57.36educational awards received from the National Service Trust under United States Code,
58.1title 42, sections 12601 to 12604, for service in an approved Americorps National Service
58.2program;
58.3(16) to the extent included in federal taxable income, discharge of indebtedness
58.4income resulting from reacquisition of business indebtedness included in federal taxable
58.5income under section 108(i) of the Internal Revenue Code. This subtraction applies only
58.6to the extent that the income was included in net income in a prior year as a result of the
58.7addition under subdivision 19a, clause (13);
58.8(17) the amount of the net operating loss allowed under section
58.911
58.10(18) the amount of expenses not allowed for federal income tax purposes due
58.11to claiming the railroad track maintenance credit under section 45G(a) of the Internal
58.12Revenue Code;
58.13(19) the amount of the limitation on itemized deductions under section 68(b) of the
58.14Internal Revenue Code;
58.15(20) the amount of the phaseout of personal exemptions under section 151(d) of
58.16the Internal Revenue Code;
58.17
58.18
58.19
58.20
58.21
58.22
58.23
58.24
58.25(21) the amount equal to the contributions made during the taxable year to an
58.26account in a plan qualifying under section 529 of the Internal Revenue Code, reduced by
58.27any withdrawals from the account during the taxable year, not including amounts rolled
58.28over from other accounts in plans qualifying under section 529 of the Internal Revenue
58.29Code, and not to exceed $3,000 for married couples filing joint returns and $1,500 for
58.30all other filers. The subtraction must not include any amount used to claim the credit
58.31allowed under section 290.0684; and
58.32(22) to the extent included in federal taxable income, the discharge of indebtedness
58.33of the taxpayer if the indebtedness discharged is a qualified education loan, as defined in
58.34section 221 of the Internal Revenue Code, and the indebtedness was discharged following
58.35the taxpayer's completion of an income-driven repayment plan. For purposes of this
58.36clause, "income-driven repayment plan" means a payment plan established by the United
59.1States Department of Education that sets monthly student loan payments based on income
59.2and family size under United States Code, title 20, section 1087e, or similar authority and
59.3specifically includes, but is not limited to:
59.4(1) the income-based repayment plan under United State Code, title 20, section 1098e;
59.5(2) the income contingent repayment plan established under United State Code,
59.6title 20, section 1087e, subsection (e); and
59.7(3) the PAYE program or REPAYE program established by the Department of
59.8Education under administrative regulations.
59.9EFFECTIVE DATE.This section is effective for taxable years beginning after
59.10December 31, 2015.
59.11 Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:
59.12 Subd. 19c. Corporations; additions to federal taxable income. For corporations,
59.13there shall be added to federal taxable income:
59.14 (1) the amount of any deduction taken for federal income tax purposes for income,
59.15excise, or franchise taxes based on net income or related minimum taxes, including but not
59.16limited to the tax imposed under section
59.17another state, a political subdivision of another state, the District of Columbia, or any
59.18foreign country or possession of the United States;
59.19 (2) interest not subject to federal tax upon obligations of: the United States, its
59.20possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
59.21state, any of its political or governmental subdivisions, any of its municipalities, or any
59.22of its governmental agencies or instrumentalities; the District of Columbia; or Indian
59.23tribal governments;
59.24 (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
59.25Revenue Code;
59.26 (4) the amount of any net operating loss deduction taken for federal income tax
59.27purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
59.28deduction under section 810 of the Internal Revenue Code;
59.29 (5) the amount of any special deductions taken for federal income tax purposes
59.30under sections 241 to 247 and 965 of the Internal Revenue Code;
59.31 (6) losses from the business of mining, as defined in section
59.32clause (a), that are not subject to Minnesota income tax;
59.33 (7) the amount of any capital losses deducted for federal income tax purposes under
59.34sections 1211 and 1212 of the Internal Revenue Code;
60.1 (8) the amount of percentage depletion deducted under sections 611 through 614 and
60.2291 of the Internal Revenue Code;
60.3 (9) for certified pollution control facilities placed in service in a taxable year
60.4beginning before December 31, 1986, and for which amortization deductions were elected
60.5under section 169 of the Internal Revenue Code of 1954, as amended through December
60.631, 1985, the amount of the amortization deduction allowed in computing federal taxable
60.7income for those facilities;
60.8 (10) the amount of a partner's pro rata share of net income which does not flow
60.9through to the partner because the partnership elected to pay the tax on the income under
60.10section 6242(a)(2) of the Internal Revenue Code;
60.11 (11) any increase in subpart F income, as defined in section 952(a) of the Internal
60.12Revenue Code, for the taxable year when subpart F income is calculated without regard to
60.13the provisions of Division C, title III, section 303(b) of Public Law 110-343;
60.14 (12) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
60.15and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
60.16has an activity that in the taxable year generates a deduction for depreciation under
60.17section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
60.18that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
60.19under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
60.20depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
60.21amount of the loss from the activity that is not allowed in the taxable year. In succeeding
60.22taxable years when the losses not allowed in the taxable year are allowed, the depreciation
60.23under section 168(k)(1)(A) and (k)(4)(A) is allowed;
60.24 (13) 80 percent of the amount by which the deduction allowed by section 179 of
60.25the Internal Revenue Code exceeds the deduction allowable
60.26section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;
60.27 (14) to the extent deducted in computing federal taxable income, the amount of the
60.28deduction allowable under section 199 of the Internal Revenue Code;
60.29 (15) the amount of expenses disallowed under section
60.30(16) discharge of indebtedness income resulting from reacquisition of business
60.31indebtedness and deferred under section 108(i) of the Internal Revenue Code.
60.32EFFECTIVE DATE.This section is effective the day following final enactment,
60.33except the changes incorporated by federal changes are effective retroactively at the same
60.34time as the changes were effective for federal purposes.
60.35 Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:
61.1 Subd. 19d. Corporations; modifications decreasing federal taxable income. For
61.2corporations, there shall be subtracted from federal taxable income after the increases
61.3provided in subdivision 19c:
61.4 (1) the amount of foreign dividend gross-up added to gross income for federal
61.5income tax purposes under section 78 of the Internal Revenue Code;
61.6 (2) the amount of salary expense not allowed for federal income tax purposes due to
61.7claiming the work opportunity credit under section 51 of the Internal Revenue Code;
61.8 (3) any dividend (not including any distribution in liquidation) paid within the
61.9taxable year by a national or state bank to the United States, or to any instrumentality of
61.10the United States exempt from federal income taxes, on the preferred stock of the bank
61.11owned by the United States or the instrumentality;
61.12 (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the
61.13Internal Revenue Code, except that:
61.14 (i) for capital losses incurred in taxable years beginning after December 31, 1986,
61.15capital loss carrybacks shall not be allowed;
61.16 (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
61.17a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
61.18allowed;
61.19 (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
61.20capital loss carryback to each of the three taxable years preceding the loss year, subject to
61.21the provisions of Minnesota Statutes 1986, section
61.22 (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
61.23a capital loss carryover to each of the five taxable years succeeding the loss year to the
61.24extent such loss was not used in a prior taxable year and subject to the provisions of
61.25Minnesota Statutes 1986, section
61.26 (5) an amount for interest and expenses relating to income not taxable for federal
61.27income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
61.28expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
61.29291 of the Internal Revenue Code in computing federal taxable income;
61.30 (6) in the case of mines, oil and gas wells, other natural deposits, and timber for
61.31which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a
61.32reasonable allowance for depletion based on actual cost. In the case of leases the deduction
61.33must be apportioned between the lessor and lessee in accordance with rules prescribed
61.34by the commissioner. In the case of property held in trust, the allowable deduction must
61.35be apportioned between the income beneficiaries and the trustee in accordance with the
62.1pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
62.2of the trust's income allocable to each;
62.3 (7) for certified pollution control facilities placed in service in a taxable year
62.4beginning before December 31, 1986, and for which amortization deductions were elected
62.5under section 169 of the Internal Revenue Code of 1954, as amended through December
62.631, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
62.71986, section
62.8 (8) amounts included in federal taxable income that are due to refunds of income,
62.9excise, or franchise taxes based on net income or related minimum taxes paid by the
62.10corporation to Minnesota, another state, a political subdivision of another state, the
62.11District of Columbia, or a foreign country or possession of the United States to the extent
62.12that the taxes were added to federal taxable income under subdivision 19c, clause (1), in a
62.13prior taxable year;
62.14 (9) income or gains from the business of mining as defined in section
62.15subdivision 1
62.16 (10) the amount of disability access expenditures in the taxable year which are not
62.17allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
62.18 (11) the amount of qualified research expenses not allowed for federal income tax
62.19purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that
62.20the amount exceeds the amount of the credit allowed under section
62.21 (12) the amount of salary expenses not allowed for federal income tax purposes due to
62.22claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code;
62.23 (13) any decrease in subpart F income, as defined in section 952(a) of the Internal
62.24Revenue Code, for the taxable year when subpart F income is calculated without regard to
62.25the provisions of Division C, title III, section 303(b) of Public Law 110-343;
62.26 (14) in each of the five tax years immediately following the tax year in which an
62.27addition is required under subdivision 19c, clause (12), an amount equal to one-fifth of
62.28the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
62.29amount of the addition made by the taxpayer under subdivision 19c, clause (12). The
62.30resulting delayed depreciation cannot be less than zero;
62.31 (15)
62.32
62.33
62.34section 290.0803, subdivision 3;
62.35(16) to the extent included in federal taxable income, discharge of indebtedness
62.36income resulting from reacquisition of business indebtedness included in federal taxable
63.1income under section 108(i) of the Internal Revenue Code. This subtraction applies only
63.2to the extent that the income was included in net income in a prior year as a result of the
63.3addition under subdivision 19c, clause (16); and
63.4(17) the amount of expenses not allowed for federal income tax purposes due
63.5to claiming the railroad track maintenance credit under section 45G(a) of the Internal
63.6Revenue Code.
63.7EFFECTIVE DATE.This section is effective for taxable years beginning after
63.8December 31, 2015.
63.9 Sec. 9. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 31, is
63.10amended to read:
63.11 Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal
63.12Revenue Code" means the Internal Revenue Code of 1986, as amended through December
63.1331,
63.14law that relates to provisions of the Internal Revenue Code that are incorporated into
63.15Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
63.16subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
63.17amended through March 18, 2010.
63.18EFFECTIVE DATE.This section is effective the day following final enactment,
63.19except the changes incorporated by federal changes are effective retroactively at the same
63.20time as the changes were effective for federal purposes.
63.21 Sec. 10. Minnesota Statutes 2014, section 290.06, subdivision 22, is amended to read:
63.22 Subd. 22. Credit for taxes paid to another state. (a) A taxpayer who is liable for
63.23taxes based on net income to another state, as provided in paragraphs (b) through (f), upon
63.24income allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to
63.25another state if the tax is actually paid in the taxable year or a subsequent taxable year. A
63.26taxpayer who is a resident of this state pursuant to section
63.27(b), and who is subject to income tax as a resident in the state of the individual's domicile
63.28is not allowed this credit unless the state of domicile does not allow a similar credit.
63.29(b) For an individual, estate, or trust, the credit is determined by multiplying the tax
63.30payable under this chapter by the ratio derived by dividing the income subject to tax in the
63.31other state that is also subject to tax in Minnesota while a resident of Minnesota by the
63.32taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue
63.33Code, modified by the addition required by section
64.1and the subtraction allowed by section
64.2the income is allocated or assigned to Minnesota under sections
64.3(c) If the taxpayer is an athletic team that apportions all of its income under section
64.5chapter by the ratio derived from dividing the total net income subject to tax in the other
64.6state by the taxpayer's Minnesota taxable income.
64.7(d) (1) The credit determined under paragraph (b) or (c) shall not exceed the amount
64.8of tax so paid to the other state on the gross income earned within the other state subject
64.9to tax under this chapter
64.10
64.11chapter to an amount less than what would be assessed if
64.12gross income earned within the other state were excluded from taxable net income.
64.13(e) In the case of the tax assessed on a lump-sum distribution under section
64.15the lump-sum distribution that is also subject to tax under section
64.16not exceed the tax assessed under section
64.17distribution defined in section
64.18received in prior years or is all or in part an annuity contract, the reduction to the tax on
64.19the lump-sum distribution allowed under section
64.20to another state that is properly apportioned to that distribution.
64.21(f) If a Minnesota resident reported an item of income to Minnesota and is assessed
64.22tax in such other state on that same income after the Minnesota statute of limitations
64.23has expired, the taxpayer shall receive a credit for that year under paragraph (a),
64.24notwithstanding any statute of limitations to the contrary. The claim for the credit must
64.25be submitted within one year from the date the taxes were paid to the other state. The
64.26taxpayer must submit sufficient proof to show entitlement to a credit.
64.27(g) For the purposes of this subdivision, a resident shareholder of a corporation
64.28treated as an "S" corporation under section
64.29a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share
64.30of any net income tax paid by the S corporation to another state. For the purposes of the
64.31preceding sentence, the term "net income tax" means any tax imposed on or measured by
64.32a corporation's net income.
64.33(h) For the purposes of this subdivision, a resident partner of an entity taxed as a
64.34partnership under the Internal Revenue Code must be considered to have paid a tax imposed
64.35on the partner in an amount equal to the partner's pro rata share of any net income tax paid
65.1by the partnership to another state. For purposes of the preceding sentence, the term "net
65.2income" tax means any tax imposed on or measured by a partnership's net income.
65.3(i) For the purposes of this subdivision, "another state":
65.4(1) includes:
65.5(i) the District of Columbia; and
65.6(ii) a province or territory of Canada; but
65.7(2) excludes Puerto Rico and the several territories organized by Congress.
65.8(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a
65.9state by state basis.
65.10(k) For a tax imposed by a province or territory of Canada, the tax for purposes of
65.11this subdivision is the excess of the tax over the amount of the foreign tax credit allowed
65.12under section 27 of the Internal Revenue Code. In determining the amount of the foreign
65.13tax credit allowed, the net income taxes imposed by Canada on the income are deducted
65.14first. Any remaining amount of the allowable foreign tax credit reduces the provincial or
65.15territorial tax that qualifies for the credit under this subdivision.
65.16(l) If the amount of the credit which a qualifying individual is eligible to receive
65.17under this section for tax paid to a qualifying state, disregarding the limitation in paragraph
65.18(d), clause (2), exceeds the tax due under this chapter, the commissioner shall refund the
65.19excess to the individual. An amount sufficient to pay the refunds required by this section
65.20is appropriated to the commissioner from the general fund.
65.21For purposes of this paragraph, "qualifying individual" means a Minnesota resident under
65.22section 290.01, subdivision 7, paragraph (a), who received compensation during the
65.23taxable year for the performance of personal or professional services within a qualifying
65.24state, and "qualifying state" means a state with which an agreement under section 290.081
65.25is not in effect for the taxable year but was in effect for a taxable year beginning before
65.26January 1, 2010.
65.27EFFECTIVE DATE.This section is effective for taxable years beginning after
65.28December 31, 2015.
65.29 Sec. 11. Minnesota Statutes 2014, section 290.067, subdivision 1, is amended to read:
65.30 Subdivision 1. Amount of credit. (a) A taxpayer may take as a credit against the
65.31tax due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
65.32dependent care credit for which the taxpayer is eligible pursuant to the provisions of
65.33section 21 of the Internal Revenue Code
65.34
65.35as a Minnesota family investment program grant or allowance to or on behalf of the child
66.1must not be taken into account in determining whether the child received more than half
66.2of the child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of
66.3the Internal Revenue Code do not apply.
66.4(b) If a child who has not attained the age of six years at the close of the taxable year
66.5is cared for at a licensed family day care home operated by the child's parent, the taxpayer
66.6is deemed to have paid employment-related expenses. If the child is 16 months old or
66.7younger at the close of the taxable year, the amount of expenses deemed to have been paid
66.8equals the maximum limit for one qualified individual under section 21(c) and (d) of the
66.9Internal Revenue Code. If the child is older than 16 months of age but has not attained the
66.10age of six years at the close of the taxable year, the amount of expenses deemed to have
66.11been paid equals the amount the licensee would charge for the care of a child of the same
66.12age for the same number of hours of care.
66.13(c) If a married couple:
66.14(1) has a child who has not attained the age of one year at the close of the taxable year;
66.15(2) files a joint tax return for the taxable year; and
66.16(3) does not participate in a dependent care assistance program as defined in section
66.17129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid
66.18for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of
66.19(i) the combined earned income of the couple or (ii) the amount of the maximum limit for
66.20one qualified individual under section 21(c) and (d) of the Internal Revenue Code will
66.21be deemed to be the employment related expense paid for that child. The earned income
66.22limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed
66.23amount. These deemed amounts apply regardless of whether any employment-related
66.24expenses have been paid.
66.25(d) If the taxpayer is not required and does not file a federal individual income tax
66.26return for the tax year, no credit is allowed for any amount paid to any person unless:
66.27(1) the name, address, and taxpayer identification number of the person are included
66.28on the return claiming the credit; or
66.29(2) if the person is an organization described in section 501(c)(3) of the Internal
66.30Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code,
66.31the name and address of the person are included on the return claiming the credit.
66.32In the case of a failure to provide the information required under the preceding sentence,
66.33the preceding sentence does not apply if it is shown that the taxpayer exercised due
66.34diligence in attempting to provide the information required.
66.35(e) In the case of a nonresident, part-year resident, or a person who has earned
66.36income not subject to tax under this chapter including earned income excluded pursuant to
67.1section
67.2Internal Revenue Code must be allocated based on the ratio by which the earned income
67.3of the claimant and the claimant's spouse from Minnesota sources bears to the total earned
67.4income of the claimant and the claimant's spouse.
67.5(f) For residents of Minnesota, the subtractions for military pay under section
67.7subject to tax under this chapter."
67.8(g) For residents of Minnesota, the exclusion of combat pay under section 112 of
67.9the Internal Revenue Code is not considered "earned income not subject to tax under
67.10this chapter."
67.11(h) For taxpayers with federal adjusted gross income in excess of $38,000, the
67.12credit is equal to the lesser of the credit otherwise calculated under this subdivision or the
67.13amount equal to the credit otherwise calculated under this subdivision minus ten percent
67.14of federal adjusted gross income in excess of $38,000, but in no case is the credit less than
67.15zero. For purposes of this paragraph, "federal adjusted gross income" has the meaning
67.16given in section 62 of the Internal Revenue Code.
67.17EFFECTIVE DATE.This section is effective for taxable years beginning after
67.18December 31, 2015.
67.19 Sec. 12. Minnesota Statutes 2014, section 290.067, subdivision 2b, is amended to read:
67.20 Subd. 2b. Inflation adjustment. The commissioner shall adjust the dollar amount
67.21of the income threshold at which the maximum credit begins to be reduced under
67.22subdivision
67.23the Internal Revenue Code, except that in section 1(f)(3)(B) the word
67.24be substituted for the word "1992." For
67.25the percent change from the 12 months ending on August 31,
67.26ending on August 31,
67.27on August 31,
67.28taxable year. The determination of the commissioner pursuant to this subdivision must not
67.29be considered a "rule" and is not subject to the Administrative Procedure Act contained in
67.30chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount.
67.31If the amount ends in $5, the amount is rounded up to the nearest $10 amount.
67.32EFFECTIVE DATE.This section is effective for taxable years beginning after
67.33December 31, 2016.
68.1 Sec. 13. Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1,
68.2is amended to read:
68.3 Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is
68.4allowed a credit against the tax imposed by this chapter equal to a percentage of earned
68.5income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of
68.6the Internal Revenue Code
68.7(i) the earned income and adjusted gross income limitations of section 32 of the
68.8Internal Revenue Code do not apply; and
68.9(ii) a taxpayer with no qualifying children who has attained the age of 21 but not
68.10attained age 65 before the close of the taxable year and is otherwise eligible for a credit
68.11under section 32 of the Internal Revenue Code may also receive a credit.
68.12(b) For individuals with no qualifying children, the credit equals
68.13of the first
68.14of earned income or adjusted gross income, whichever is greater, in excess of
68.15$12,000, but in no case is the credit less than zero.
68.16(c) For individuals with one qualifying child, the credit equals
68.17of the first
68.18of earned income or adjusted gross income, whichever is greater, in excess of
68.19$21,620, but in no case is the credit less than zero.
68.20(d) For individuals with two or more qualifying children, the credit equals
68.21percent of the first
68.229.2 percent of earned income or adjusted gross income, whichever is greater, in excess of
68.23
68.24(e) For a part-year resident, the credit must be allocated based on the percentage
68.25calculated under section
68.26(f) For a person who was a resident for the entire tax year and has earned income
68.27not subject to tax under this chapter, including income excluded under section
68.28subdivision 19b
68.29adjusted gross income reduced by the earned income not subject to tax under this chapter
68.30over federal adjusted gross income. For purposes of this paragraph, the subtractions
68.31for military pay under section
68.32considered "earned income not subject to tax under this chapter."
68.33For the purposes of this paragraph, the exclusion of combat pay under section 112
68.34of the Internal Revenue Code is not considered "earned income not subject to tax under
68.35this chapter."
69.1(g) For tax years beginning after
69.2
69.3(b), the
69.4after being adjusted for inflation under subdivision 7, are each increased by $3,000 for
69.5married taxpayers filing joint returns. For tax years beginning after December 31,
69.62017, the commissioner shall annually adjust the $3,000 by the percentage determined
69.7pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
69.8section 1(f)(3)(B), the word "2007" shall be substituted for the word "1992." For
69.92018, the commissioner shall then determine the percent change from the 12 months
69.10ending on August 31, 2007, to the 12 months ending on August 31,
69.11each subsequent year, from the 12 months ending on August 31, 2007, to the 12 months
69.12ending on August 31 of the year preceding the taxable year. The earned income thresholds
69.13as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the
69.14amount is rounded up to the nearest $10. The determination of the commissioner under
69.15this subdivision is not a rule under the Administrative Procedure Act.
69.16(h)
69.17
69.18
69.19
69.20
69.21$21,620 in paragraph (c), and the
69.22for inflation under subdivision 7, are each increased by $5,000 for married taxpayers filing
69.23joint returns. For tax years beginning
69.24
69.252018, the commissioner shall annually adjust the $5,000 by the percentage determined
69.26pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
69.27section 1(f)(3)(B), the word "2008" shall be substituted for the word "1992." For
69.282016, the commissioner shall then determine the percent change from the 12 months
69.29ending on August 31, 2008, to the 12 months ending on August 31,
69.30each subsequent year, from the 12 months ending on August 31, 2008, to the 12 months
69.31ending on August 31 of the year preceding the taxable year. The earned income thresholds
69.32as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the
69.33amount is rounded up to the nearest $10. The determination of the commissioner under
69.34this subdivision is not a rule under the Administrative Procedure Act.
69.35(i) The commissioner shall construct tables showing the amount of the credit at
69.36various income levels and make them available to taxpayers. The tables shall follow
70.1the schedule contained in this subdivision, except that the commissioner may graduate
70.2the transition between income brackets.
70.3EFFECTIVE DATE.This section is effective for taxable years beginning after
70.4December 31, 2015.
70.5 Sec. 14. Minnesota Statutes 2014, section 290.0671, subdivision 7, is amended to read:
70.6 Subd. 7. Inflation adjustment. The earned income amounts used to calculate
70.7the credit and the income thresholds at which the maximum credit begins to be reduced
70.8in subdivision 1 must be adjusted for inflation. The commissioner shall adjust by the
70.9percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
70.10Code, except that in section 1(f)(3)(B) the word
70.11the word "1992." For
70.12change from the 12 months ending on August 31,
70.13on August 31,
70.14August 31,
70.15taxable year. The earned income thresholds as adjusted for inflation must be rounded to
70.16the nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest
70.17$10 amount. The determination of the commissioner under this subdivision is not a rule
70.18under the Administrative Procedure Act.
70.19EFFECTIVE DATE.This section is effective for taxable years beginning after
70.20December 31, 2016.
70.21 Sec. 15. Minnesota Statutes 2014, section 290.0674, subdivision 2, is amended to read:
70.22 Subd. 2. Limitations. (a) For claimants with income not greater than $33,500, the
70.23maximum credit allowed for a family is $1,000 multiplied by the number of qualifying
70.24children in kindergarten through grade 12 in the family. The maximum credit for families
70.25with one qualifying child in kindergarten through grade 12 is reduced by $1 for each $4 of
70.26household income over $33,500, and the maximum credit for families with two or more
70.27qualifying children in kindergarten through grade 12 is reduced by $2 for each $4 of
70.28household income over $33,500, but in no case is the credit less than zero.
70.29For purposes of this section "income" has the meaning given in
70.30subdivision 2a. In the case of a married claimant, a credit is not allowed unless a joint
70.31income tax return is filed.
71.1(b) For a nonresident or part-year resident, the credit determined under subdivision 1
71.2and the maximum credit amount in paragraph (a) must be allocated using the percentage
71.3calculated in section
71.4EFFECTIVE DATE.This section is effective for taxable years beginning after
71.5December 31, 2015.
71.6 Sec. 16. Minnesota Statutes 2014, section 290.0674, is amended by adding a
71.7subdivision to read:
71.8 Subd. 2a. Income. (a) For purposes of this section, "income" means the sum of
71.9the following:
71.10(1) federal adjusted gross income as defined in section 62 of the Internal Revenue
71.11Code; and
71.12(2) the sum of the following amounts to the extent not included in clause (1):
71.13(i) all nontaxable income;
71.14(ii) the amount of a passive activity loss that is not disallowed as a result of section
71.15469, paragraph (i) or (m), of the Internal Revenue Code and the amount of passive activity
71.16loss carryover allowed under section 469(b) of the Internal Revenue Code;
71.17(iii) an amount equal to the total of any discharge of qualified farm indebtedness
71.18of a solvent individual excluded from gross income under section 108(g) of the Internal
71.19Revenue Code;
71.20(iv) cash public assistance and relief;
71.21(v) any pension or annuity (including railroad retirement benefits, all payments
71.22received under the federal Social Security Act, Supplemental Security Income, and
71.23veterans benefits), which was not exclusively funded by the claimant or spouse, or which
71.24was funded exclusively by the claimant or spouse and which funding payments were
71.25excluded from federal adjusted gross income in the years when the payments were made;
71.26(vi) interest received from the federal or a state government or any instrumentality
71.27or political subdivision thereof;
71.28(vii) workers' compensation;
71.29(viii) nontaxable strike benefits;
71.30(ix) the gross amounts of payments received in the nature of disability income or
71.31sick pay as a result of accident, sickness, or other disability, whether funded through
71.32insurance or otherwise;
71.33(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
71.341986, as amended through December 31, 1995;
72.1(xi) contributions made by the claimant to an individual retirement account,
72.2including a qualified voluntary employee contribution; simplified employee pension plan;
72.3self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
72.4of the Internal Revenue Code; or deferred compensation plan under section 457 of the
72.5Internal Revenue Code;
72.6(xii) nontaxable scholarship or fellowship grants;
72.7(xiii) the amount of deduction allowed under section 199 of the Internal Revenue
72.8Code;
72.9(xiv) the amount of deduction allowed under section 220 or 223 of the Internal
72.10Revenue Code;
72.11(xv) the amount deducted for tuition expenses under section 222 of the Internal
72.12Revenue Code; and
72.13(xvi) the amount deducted for certain expenses of elementary and secondary school
72.14teachers under section 62(a)(2)(D) of the Internal Revenue Code.
72.15In the case of an individual who files an income tax return on a fiscal year basis, the
72.16term "federal adjusted gross income" means federal adjusted gross income reflected in the
72.17fiscal year ending in the next calendar year. Federal adjusted gross income may not be
72.18reduced by the amount of a net operating loss carryback or carryforward or a capital loss
72.19carryback or carryforward allowed for the year.
72.20(b) "Income" does not include:
72.21(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
72.22(2) amounts of any pension or annuity that were exclusively funded by the claimant
72.23or spouse if the funding payments were not excluded from federal adjusted gross income
72.24in the years when the payments were made;
72.25(3) surplus food or other relief in kind supplied by a governmental agency;
72.26(4) relief granted under chapter 290A;
72.27(5) child support payments received under a temporary or final decree of dissolution
72.28or legal separation; and
72.29(6) restitution payments received by eligible individuals and excludable interest as
72.30defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
72.312001, Public Law 107-16.
72.32EFFECTIVE DATE.This section is effective for taxable years beginning after
72.33December 31, 2015.
72.34 Sec. 17. Minnesota Statutes 2014, section 290.0677, subdivision 1a, is amended to read:
73.1 Subd. 1a. Credit allowed; past military service. (a) A qualified individual is
73.2allowed a credit against the tax imposed under this chapter for past military service.
73.3The credit equals
73.4ten percent of adjusted gross income in excess of
73.5the credit less than zero.
73.6 (b) For a nonresident or a part-year resident, the credit under this subdivision
73.7must be allocated based on the percentage calculated under section
73.82c
73.9EFFECTIVE DATE.This section is effective for taxable years beginning after
73.10December 31, 2015.
73.11 Sec. 18. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:
73.12 Subd. 2. Definitions. For purposes of this section, the following terms have the
73.13meanings given.
73.14 (a) "Qualified research expenses" means (i) qualified research expenses and basic
73.15research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
73.16it does not include expenses incurred for qualified research or basic research conducted
73.17outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue
73.18Code; and (ii) contributions to a nonprofit corporation established and operated pursuant
73.19to the provisions of chapter 317A for the purpose of promoting the establishment and
73.20expansion of business in this state, provided the contributions are invested by the nonprofit
73.21corporation for the purpose of providing funds for small, technologically innovative
73.22enterprises in Minnesota during the early stages of their development.
73.23 (b) "Qualified research" means qualified research as defined in section 41(d) of the
73.24Internal Revenue Code, except that the term does not include qualified research conducted
73.25outside the state of Minnesota.
73.26 (c) "Base amount" means base amount as defined in section 41(c) of the Internal
73.27Revenue Code, except that the average annual gross receipts must be calculated using
73.28Minnesota sales or receipts under section
73.29(a) and (b) shall apply. If there are inadequate records or the records are unavailable to
73.30compute or verify the base percentage, a fixed base percentage of 16 percent must be used.
73.31EFFECTIVE DATE.This section is effective for taxable years beginning after
73.32December 31, 2015.
74.1 Sec. 19. [290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN
74.2TEACHER'S LICENSURE FIELD.
74.3 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
74.4have the meanings given them.
74.5(b) "Master's degree program" means a graduate-level program at an accredited
74.6university leading to a master of arts or science degree in a core content area directly
74.7related to a qualified teacher's licensure field. The master's degree program may not
74.8include pedagogy or a pedagogy component. To be eligible under this credit, a licensed
74.9elementary school teacher must pursue and complete a master's degree program in a core
74.10content area in which the teacher provides direct classroom instruction.
74.11(c) "Qualified teacher" means a K-12 teacher who:
74.12(1) holds a continuing license granted by the Minnesota Board of Teaching both
74.13when the teacher begins the master's degree program and when the teacher completes the
74.14master's degree program;
74.15(2) began a master's degree program after June 30, 2016; and
74.16(3) completes the master's degree program during the taxable year.
74.17(d) "Core content area" means the academic subject of reading, English or language
74.18arts, mathematics, science, foreign languages, civics and government, economics, arts,
74.19history, or geography.
74.20 Subd. 2. Credit allowed. (a) An individual who is a qualified teacher is allowed a
74.21credit against the tax imposed under this chapter. The credit equals $2,500.
74.22(b) For a nonresident or a part-year resident, the credit under this subdivision
74.23must be allocated based on the percentage calculated under section 290.06, subdivision
74.242c, paragraph (e).
74.25(c) A qualified teacher may claim the credit in this section only one time for each
74.26master's degree program completed in a core content area.
74.27 Subd. 3. Credit refundable. (a) If the amount of the credit for which an individual
74.28is eligible exceeds the individual's liability for tax under this chapter, the commissioner
74.29shall refund the excess to the individual.
74.30(b) The amount necessary to pay the refunds required by this section is appropriated
74.31to the commissioner from the general fund.
74.32EFFECTIVE DATE.This section is effective for taxable years beginning after
74.33December 31, 2015.
74.34 Sec. 20. [290.0683] STUDENT LOAN CREDIT.
75.1 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
75.2have the meanings given.
75.3(b) "Adjusted gross income" means federal adjusted gross income as defined in
75.4section 62 of the Internal Revenue Code. In the case of a married couple filing jointly,
75.5"adjusted gross income" means the adjusted gross income of the taxpayer and spouse.
75.6(c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue
75.7Code, except that "earned income" includes combat pay excluded from federal taxable
75.8income under section 112 of the Internal Revenue Code.
75.9(d) "Education profession" means:
75.10(1) a full-time job in public education; early childhood education, including licensed
75.11or regulated child care, Head Start, and state-funded prekindergarten; school-based library
75.12sciences; and other school-based services; or
75.13(2) a full-time job as a faculty member at a tribal college or university as defined in
75.14section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs
75.15subject areas or areas of shortage, including nurse faculty, foreign language faculty, and
75.16part-time faculty at community colleges, as determined by the United States Secretary
75.17of Education.
75.18(e) "Eligible individual" means an individual who has one or more qualified
75.19education loans related to an undergraduate or graduate degree program of the individual
75.20at a postsecondary educational institution.
75.21(f) "Eligible loan payments" means the amount the eligible individual paid during
75.22the taxable year to pay principal and interest on qualified education loans.
75.23(g) "Postsecondary educational institution" means a postsecondary institution
75.24eligible for state student aid under section 136A.103 or, if the institution is not located in
75.25this state, a postsecondary institution participating in the federal Pell Grant program under
75.26Title IV of the Higher Education Act of 1965, Public Law 89-329, as amended.
75.27(h) "Public service job" means a full-time job in emergency management;
75.28government, excluding time served as a member of Congress; military service; public
75.29safety; law enforcement; public health, including nurses, nurse practitioners, nurses
75.30in a clinical setting, and full-time professionals engaged in health care practitioner
75.31occupations and health care support occupations, as such terms are defined by the Bureau
75.32of Labor Statistics; social work in a public child or family service agency; public interest
75.33law services including prosecution or public defense or legal advocacy on behalf of
75.34low-income communities at a nonprofit organization; public service for individuals with
75.35disabilities or public service for the elderly; public library sciences; or at an organization
76.1that is described in section 501(c)(3) of the Internal Revenue Code and exempt from
76.2taxation under section 501(a) of the Internal Revenue Code.
76.3(i) "Qualified education loan" has the meaning given in section 221 of the Internal
76.4Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
76.5 Subd. 2. Credit allowed. (a) An eligible individual is allowed a credit against the
76.6tax due under this chapter. The credit equals a percentage of eligible loan payments in
76.7excess of ten percent of adjusted gross income, up to $1,000, as follows:
76.8(1) for eligible individuals, 50 percent;
76.9(2) for eligible individuals in a public service job, 65 percent; and
76.10(3) for eligible individuals in an education profession, 75 percent.
76.11(b) The credit must not exceed the eligible individual's earned income for the taxable
76.12year.
76.13(c) In the case of a married couple filing a joint return, each spouse is eligible for
76.14the credit in this section.
76.15(d) For a nonresident or part-year resident, the credit must be allocated based on the
76.16percentage calculated under section 290.06, subdivision 2c, paragraph (e).
76.17(e) An eligible individual may receive the credit under this section without regard to
76.18the individual's eligibility for the public service loan forgiveness program under United
76.19States Code, title 20, section 1087e(m).
76.20 Subd. 3. Credit refundable. If the amount of credit that an individual who is a
76.21resident or part-year resident of Minnesota is eligible to receive under this section exceeds
76.22the individual's tax liability under this chapter, the commissioner shall refund the excess
76.23to the individual. For a nonresident taxpayer, the credit may not exceed the taxpayer's
76.24liability for tax under this chapter.
76.25 Subd. 4. Appropriation. An amount sufficient to pay the refunds required by this
76.26section is appropriated to the commissioner from the general fund.
76.27EFFECTIVE DATE.This section is effective for taxable years beginning after
76.28December 31, 2015.
76.29 Sec. 21. [290.0684] SECTION 529 COLLEGE SAVINGS PLAN CREDIT.
76.30 Subdivision 1. Definitions. For purposes of this section, the term "federal adjusted
76.31gross income" has the meaning given under section 62(a) of the Internal Revenue Code,
76.32and "nonqualified distribution" means any distribution that is includible in gross income
76.33under section 529 of the Internal Revenue Code.
76.34 Subd. 2. Credit allowed. (a) A credit of up to $500 is allowed to a resident
76.35individual against the tax imposed by this chapter, subject to the limitations in paragraph
77.1(b). The credit is not allowed to an individual who is eligible to be claimed as a dependent,
77.2as defined in sections 151 and 152 of the Internal Revenue Code.
77.3(b) The credit allowed must be calculated by applying the following rates to the
77.4amount contributed to an account in a plan qualifying under section 529 of the Internal
77.5Revenue Code, in a taxable year, reduced by any withdrawals from the account made
77.6during the taxable year, and not including any amounts rolled over from other accounts in
77.7plans qualifying under section 529 of the Internal Revenue Code:
77.8(1) 50 percent for individual filers and married couples filing a joint return who have
77.9federal adjusted gross income of not more than $80,000;
77.10(2) 25 percent for married couples filing a joint return who have federal adjusted
77.11gross income over $80,000, but not more than $100,000;
77.12(3) ten percent for married couples filing a joint return who have federal adjusted
77.13gross income over $100,000, but not more than $120,000; and
77.14(4) five percent for married couples filing a joint return who have federal adjusted
77.15gross income over $120,000, but not more than $160,000.
77.16(c) The income thresholds in paragraph (b), clauses (1) to (4), used to calculate the
77.17credit, must be adjusted for inflation. The commissioner shall adjust by the percentage
77.18determined under the provisions of section 1(f) of the Internal Revenue Code, except that
77.19in section 1(f)(3)(B) the word "2015" is substituted for the word "1992." For 2017, the
77.20commissioner shall then determine the percent change from the 12 months ending on
77.21August 31, 2015, to the 12 months ending on August 31, 2016, and in each subsequent
77.22year, from the 12 months ending on August 31, 2015, to the 12 months ending on August
77.2331 of the year preceding the taxable year. The income thresholds as adjusted for inflation
77.24must be rounded to the nearest $10 amount. If the amount ends in $5, the amount is
77.25rounded up to the nearest $10 amount. The determination of the commissioner under this
77.26subdivision is not a rule under the Administrative Procedure Act including section 14.386.
77.27 Subd. 3. Credit refundable. If the amount of credit that an individual is eligible
77.28to receive under this section exceeds the individual's tax liability under this chapter, the
77.29commissioner shall refund the excess to the individual.
77.30 Subd. 4. Allocation. For a part-year resident, the credit must be allocated based on
77.31the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
77.32 Subd. 5. Recapture of credit. In the case of a nonqualified distribution, the
77.33taxpayer is liable to the commissioner for the lesser of: ten percent of the amount of the
77.34nonqualified distribution, or the sum of credits received under this section for all years.
77.35 Subd. 6. Appropriation. An amount sufficient to pay the refunds required by this
77.36section is appropriated to the commissioner from the general fund.
78.1EFFECTIVE DATE.This section is effective for taxable years beginning after
78.2December 31, 2015.
78.3 Sec. 22. [290.0803] SECTION 179 EXPENSING SUBTRACTION.
78.4 Subdivision 1. Current year allowance. (a) In each of the five tax years
78.5immediately following the tax year in which an addition is required under section 290.01,
78.6subdivision 19a, clause (8), or 19c, clause (13), the current year allowance equals one-fifth
78.7of the addition made by the taxpayer under section 290.01, subdivision 19a, clause (8),
78.8or 19c, clause (13).
78.9(b) In the case of a shareholder of a corporation that is an S corporation, the current
78.10year allowance is reduced by the positive value of any net operating loss under section
78.11172 of the Internal Revenue Code generated for the tax year of the addition and, if the net
78.12operating loss exceeds the addition for the tax year, the current year allowance is zero.
78.13 Subd. 2. Section 179 expensing carryover. For purposes of this section, the current
78.14year allowance determined under subdivision 1 is considered to be the last modification
78.15allowed under section 290.01, subdivision 19b or 19d, in determining net income. If the
78.16amount allowed under subdivision 1 exceeds net income computed without regard to the
78.17current year allowance, then the excess is a section 179 expensing carryover to each of the
78.18ten succeeding taxable years. The entire amount of the section 179 expensing carryover
78.19is carried first to the earliest taxable year to which the section 179 expensing carryover
78.20may be carried and then to each successive year to which the section 179 expensing
78.21carryover may be carried.
78.22 Subd. 3. Section 179 expensing subtraction. A taxpayer is allowed a section 179
78.23expensing subtraction from federal taxable income under section 290.01, subdivision 19b
78.24or 19d. The subtraction equals the sum of:
78.25(1) the current year allowance determined under subdivision 1; and
78.26(2) any section 179 expensing carryover from prior taxable years determined under
78.27subdivision 2.
78.28EFFECTIVE DATE.This section is effective for taxable years beginning after
78.29December 31, 2015.
78.30 Sec. 23. Minnesota Statutes 2014, section 290.091, subdivision 2, is amended to read:
78.31 Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
78.32terms have the meanings given:
78.33 (a) "Alternative minimum taxable income" means the sum of the following for
78.34the taxable year:
79.1 (1) the taxpayer's federal alternative minimum taxable income as defined in section
79.255(b)(2) of the Internal Revenue Code;
79.3 (2) the taxpayer's itemized deductions allowed in computing federal alternative
79.4minimum taxable income, but excluding:
79.5 (i) the charitable contribution deduction under section 170 of the Internal Revenue
79.6Code;
79.7 (ii) the medical expense deduction;
79.8 (iii) the casualty, theft, and disaster loss deduction; and
79.9 (iv) the impairment-related work expenses of a disabled person;
79.10 (3) for depletion allowances computed under section 613A(c) of the Internal
79.11Revenue Code, with respect to each property (as defined in section 614 of the Internal
79.12Revenue Code), to the extent not included in federal alternative minimum taxable income,
79.13the excess of the deduction for depletion allowable under section 611 of the Internal
79.14Revenue Code for the taxable year over the adjusted basis of the property at the end of the
79.15taxable year (determined without regard to the depletion deduction for the taxable year);
79.16 (4) to the extent not included in federal alternative minimum taxable income, the
79.17amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
79.18Internal Revenue Code determined without regard to subparagraph (E);
79.19 (5) to the extent not included in federal alternative minimum taxable income, the
79.20amount of interest income as provided by section
79.21 (6) the amount of addition required by section
79.22to (9), and (11) to (14);
79.23 less the sum of the amounts determined under the following:
79.24 (1) interest income as defined in section
79.25 (2) an overpayment of state income tax as provided by section
79.2619b
79.27 (3) the amount of investment interest paid or accrued within the taxable year on
79.28indebtedness to the extent that the amount does not exceed net investment income, as
79.29defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
79.30amounts deducted in computing federal adjusted gross income;
79.31 (4) amounts subtracted from federal taxable income as provided by section
79.32subdivision 19b
79.33(5) the amount of the net operating loss allowed under section
79.3411
79.35 In the case of an estate or trust, alternative minimum taxable income must be
79.36computed as provided in section 59(c) of the Internal Revenue Code.
80.1 (b) "Investment interest" means investment interest as defined in section 163(d)(3)
80.2of the Internal Revenue Code.
80.3 (c) "Net minimum tax" means the minimum tax imposed by this section.
80.4 (d) "Regular tax" means the tax that would be imposed under this chapter (without
80.5regard to this section and section 290.032), reduced by the sum of the nonrefundable
80.6credits allowed under this chapter.
80.7 (e) "Tentative minimum tax" equals
80.8income after subtracting the exemption amount determined under subdivision 3.
80.9EFFECTIVE DATE.This section is effective for taxable years beginning after
80.10December 31, 2015.
80.11 Sec. 24. Minnesota Statutes 2015 Supplement, section 290A.03, subdivision 15,
80.12is amended to read:
80.13 Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal
80.14Revenue Code of 1986, as amended through December 31,
80.15EFFECTIVE DATE.This section is effective retroactively for property tax refunds
80.16based on property taxes payable after December 31, 2015, and rent paid after December
80.1731, 2014.
80.18 Sec. 25. Minnesota Statutes 2015 Supplement, section 291.005, subdivision 1, is
80.19amended to read:
80.20 Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
80.21terms used in this chapter shall have the following meanings:
80.22 (1) "Commissioner" means the commissioner of revenue or any person to whom the
80.23commissioner has delegated functions under this chapter.
80.24 (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
80.25and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
80.26increased by the value of any property in which the decedent had a qualifying income
80.27interest for life and for which an election was made under section
80.28for Minnesota estate tax purposes, but was not made for federal estate tax purposes.
80.29 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
80.301986, as amended through December 31,
80.31 (4) "Minnesota gross estate" means the federal gross estate of a decedent after
80.32(a) excluding therefrom any property included in the estate which has its situs outside
80.33Minnesota, and (b) including any property omitted from the federal gross estate which
81.1is includable in the estate, has its situs in Minnesota, and was not disclosed to federal
81.2taxing authorities.
81.3 (5) "Nonresident decedent" means an individual whose domicile at the time of
81.4death was not in Minnesota.
81.5 (6) "Personal representative" means the executor, administrator or other person
81.6appointed by the court to administer and dispose of the property of the decedent. If there
81.7is no executor, administrator or other person appointed, qualified, and acting within this
81.8state, then any person in actual or constructive possession of any property having a situs in
81.9this state which is included in the federal gross estate of the decedent shall be deemed
81.10to be a personal representative to the extent of the property and the Minnesota estate tax
81.11due with respect to the property.
81.12 (7) "Resident decedent" means an individual whose domicile at the time of death
81.13was in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and
81.14(d), apply to determinations of domicile under this chapter.
81.15 (8) "Situs of property" means, with respect to:
81.16 (i) real property, the state or country in which it is located;
81.17 (ii) tangible personal property, the state or country in which it was normally kept
81.18or located at the time of the decedent's death or for a gift of tangible personal property
81.19within three years of death, the state or country in which it was normally kept or located
81.20when the gift was executed;
81.21 (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
81.22Code, owned by a nonresident decedent and that is normally kept or located in this state
81.23because it is on loan to an organization, qualifying as exempt from taxation under section
81.24501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
81.25deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
81.26 (iv) intangible personal property, the state or country in which the decedent was
81.27domiciled at death or for a gift of intangible personal property within three years of death,
81.28the state or country in which the decedent was domiciled when the gift was executed.
81.29 For a nonresident decedent with an ownership interest in a pass-through entity with
81.30assets that include real or tangible personal property, situs of the real or tangible personal
81.31property, including qualified works of art, is determined as if the pass-through entity does
81.32not exist and the real or tangible personal property is personally owned by the decedent.
81.33If the pass-through entity is owned by a person or persons in addition to the decedent,
81.34ownership of the property is attributed to the decedent in proportion to the decedent's
81.35capital ownership share of the pass-through entity.
81.36(9) "Pass-through entity" includes the following:
82.1(i) an entity electing S corporation status under section 1362 of the Internal Revenue
82.2Code;
82.3(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
82.4(iii) a single-member limited liability company or similar entity, regardless of
82.5whether it is taxed as an association or is disregarded for federal income tax purposes
82.6under Code of Federal Regulations, title 26, section 301.7701-3; or
82.7(iv) a trust to the extent the property is includible in the decedent's federal gross
82.8estate; but excludes
82.9 (v) an entity whose ownership interest securities are traded on an exchange regulated
82.10by the Securities and Exchange Commission as a national securities exchange under
82.11section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.
82.12EFFECTIVE DATE.This section is effective retroactively for estates of decedents
82.13dying after December 31, 2015.
82.14 Sec. 26. Minnesota Statutes 2014, section 291.03, is amended by adding a subdivision
82.15to read:
82.16 Subd. 12. Certain dispositions to government entities. Notwithstanding any
82.17provision of this section, no taxpayer is disqualified for the subtraction provided under
82.18section 291.016, subdivision 3, nor is any taxpayer liable for the recapture tax provided in
82.19subdivision 11, solely because the state, any local government unit, or any other entity
82.20that has the power of eminent domain acquires title or possession of the land for a public
82.21purpose within the three-year holding period.
82.22EFFECTIVE DATE.This section is effective retroactively for estates of decedents
82.23dying after June 30, 2011.
82.24 Sec. 27. AMENDED RETURNS.
82.25 Subdivision 1. Certain IRA rollovers. An individual who excludes an amount
82.26from net income in a prior taxable year through rollover of an airline payment amount to
82.27a traditional IRA, as authorized under Public Law 114-113, division Q, title III, section
82.28307, may file an amended individual income tax return and claim for refund of state taxes
82.29as provided under Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by
82.30September 1, 2016.
82.31 Subd. 2. Exclusion for certain incarcerated individuals. An individual who
82.32excludes from net income in a prior taxable year civil damages, restitution, or other
83.1monetary award received as compensation for a wrongful incarceration, as authorized
83.2under Public Law 114-113, division Q, title III, section 304, may file an amended
83.3individual income tax return and claim for refund of state taxes as provided under
83.4Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September 1, 2016.
83.5EFFECTIVE DATE.This section is effective the day following final enactment.
83.6 Sec. 28. ESTATE TAX REVIEW; TEMPORARY LIMIT ON ASSESSMENTS.
83.7(a) The commissioner of revenue shall:
83.8(1) review the estate tax's definition of qualified farm property and its linkage to the
83.9property tax classification of the property during the three-year period following the
83.10death of the decedent; and
83.11(2) by February 1, 2017, report to the committees of the house of representatives
83.12and the senate with jurisdiction over taxes on alternative methods of ensuring that the
83.13use of the property by qualified heirs during the three-year period after the decedent's
83.14death is consistent with the purpose of limiting the subtraction to properties where its use
83.15continues that of the decedent without any material change in its use by the qualified heirs
83.16and its ownership is consistent with maintaining family ownership of the farm.
83.17(b) Prior to June 1, 2017, the commissioner of revenue shall not assess recapture tax
83.18under Minnesota Statutes, section 291.03, subdivision 11, for a change in the property tax
83.19classification of agricultural homestead property if the following conditions are satisfied:
83.20(1) the property is held in a trust of which the surviving spouse is a beneficiary; and
83.21(2) the property receives partial homestead classification because a beneficiary of
83.22the trust is the owner of another agricultural homestead.
83.23EFFECTIVE DATE.This section is effective the day following final enactment.
83.24 Sec. 29. INDIVIDUAL INCOME TAX COLLECTION ACTION PROHIBITED.
83.25Notwithstanding any law to the contrary, the commissioner of revenue shall not
83.26increase the amount due or decrease the refund for an individual income tax return for
83.27the taxable year beginning after December 31, 2014, and before January 1, 2016, to the
83.28extent the amount due was understated or the refund was overstated because the taxpayer
83.29calculated the tax or refund based on the Internal Revenue Code, as amended through
83.30December 31, 2014, rather than based on the Internal Revenue Code, as amended through
83.31December 31, 2015, as provided in this act.
83.32EFFECTIVE DATE.This section is effective the day following final enactment.
84.1 Sec. 30. REPEALER.
84.2Minnesota Statutes 2014, section 290.067, subdivisions 2 and 2a, are repealed.
84.3EFFECTIVE DATE.This section is effective for taxable years beginning after
84.4December 31, 2015.
84.7 Section 1. Minnesota Statutes 2014, section 297A.61, subdivision 3, is amended to read:
84.8 Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited
84.9to, each of the transactions listed in this subdivision. In applying the provisions of this
84.10chapter, the terms "tangible personal property" and "retail sale" include the taxable
84.11services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision
84.12of these taxable services, unless specifically provided otherwise. Services performed by
84.13an employee for an employer are not taxable. Services performed by a partnership or
84.14association for another partnership or association are not taxable if one of the entities owns
84.15or controls more than 80 percent of the voting power of the equity interest in the other
84.16entity. Services performed between members of an affiliated group of corporations are not
84.17taxable. For purposes of the preceding sentence, "affiliated group of corporations" means
84.18those entities that would be classified as members of an affiliated group as defined under
84.19United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
84.20 (b) Sale and purchase include:
84.21 (1) any transfer of title or possession, or both, of tangible personal property, whether
84.22absolutely or conditionally, for a consideration in money or by exchange or barter; and
84.23 (2) the leasing of or the granting of a license to use or consume, for a consideration
84.24in money or by exchange or barter, tangible personal property, other than a manufactured
84.25home used for residential purposes for a continuous period of 30 days or more.
84.26 (c) Sale and purchase include the production, fabrication, printing, or processing of
84.27tangible personal property for a consideration for consumers who furnish either directly or
84.28indirectly the materials used in the production, fabrication, printing, or processing.
84.29 (d) Sale and purchase include the preparing for a consideration of food.
84.30Notwithstanding section
84.31to, the following:
84.32 (1) prepared food sold by the retailer;
84.33 (2) soft drinks;
84.34 (3) candy;
84.35 (4) dietary supplements; and
85.1 (5) all food sold through vending machines.
85.2 (e) A sale and a purchase includes the furnishing for a consideration of electricity,
85.3gas, water, or steam for use or consumption within this state.
85.4 (f) A sale and a purchase includes the transfer for a consideration of prewritten
85.5computer software whether delivered electronically, by load and leave, or otherwise.
85.6 (g) A sale and a purchase includes the furnishing for a consideration of the following
85.7services:
85.8 (1) the privilege of admission to places of amusement, recreational areas, or athletic
85.9events, and the making available of amusement devices, tanning facilities, reducing
85.10salons, steam baths, health clubs, and spas or athletic facilities;
85.11 (2) lodging and related services by a hotel, rooming house, resort, campground,
85.12motel, or trailer camp, including furnishing the guest of the facility with access to
85.13telecommunication services, and the granting of any similar license to use real property in
85.14a specific facility, other than the renting or leasing of it for a continuous period of 30 days
85.15or more under an enforceable written agreement that may not be terminated without prior
85.16notice and including accommodations intermediary services provided in connection with
85.17other services provided under this clause;
85.18 (3) nonresidential parking services, whether on a contractual, hourly, or other
85.19periodic basis, except for parking at a meter;
85.20 (4) the granting of membership in a club, association, or other organization if:
85.21 (i) the club, association, or other organization makes available for the use of its
85.22members sports and athletic facilities, without regard to whether a separate charge is
85.23assessed for use of the facilities; and
85.24 (ii) use of the sports and athletic facility is not made available to the general public
85.25on the same basis as it is made available to members.
85.26Granting of membership means both onetime initiation fees and periodic membership
85.27dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
85.28squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
85.29swimming pools; and other similar athletic or sports facilities;
85.30 (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
85.31material used in road construction; and delivery of concrete block by a third party if the
85.32delivery would be subject to the sales tax if provided by the seller of the concrete block.
85.33For purposes of this clause, "road construction" means construction of:
85.34 (i) public roads;
85.35 (ii) cartways; and
86.1 (iii) private roads in townships located outside of the seven-county metropolitan area
86.2up to the point of the emergency response location sign; and
86.3 (6) services as provided in this clause:
86.4 (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
86.5and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
86.6drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
86.7include services provided by coin operated facilities operated by the customer;
86.8 (ii) motor vehicle washing, waxing, and cleaning services, including services
86.9provided by coin operated facilities operated by the customer, and rustproofing,
86.10undercoating, and towing of motor vehicles;
86.11 (iii) building and residential cleaning, maintenance, and disinfecting services and
86.12pest control and exterminating services;
86.13 (iv) detective, security, burglar, fire alarm, and armored car services; but not
86.14including services performed within the jurisdiction they serve by off-duty licensed peace
86.15officers as defined in section
86.16organization or any organization at the direction of a county for monitoring and electronic
86.17surveillance of persons placed on in-home detention pursuant to court order or under the
86.18direction of the Minnesota Department of Corrections;
86.19 (v) pet grooming services;
86.20 (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
86.21and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
86.22plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
86.23clearing contract as defined in section
86.24public utility lines. Services performed under a construction contract for the installation of
86.25shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
86.26 (vii) massages, except when provided by a licensed health care facility or
86.27professional or upon written referral from a licensed health care facility or professional for
86.28treatment of illness, injury, or disease; and
86.29 (viii) the furnishing of lodging, board, and care services for animals in kennels and
86.30other similar arrangements, but excluding veterinary and horse boarding services.
86.31 (h) A sale and a purchase includes the furnishing for a consideration of tangible
86.32personal property or taxable services by the United States or any of its agencies or
86.33instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
86.34subdivisions.
86.35 (i) A sale and a purchase includes the furnishing for a consideration of
86.36telecommunications services, ancillary services associated with telecommunication
87.1services, and pay television services. Telecommunication services include, but are
87.2not limited to, the following services, as defined in section
87.3radiotelephone service, mobile telecommunication service, postpaid calling service,
87.4prepaid calling service, prepaid wireless calling service, and private communication
87.5services. The services in this paragraph are taxed to the extent allowed under federal law.
87.6 (j) A sale and a purchase includes the furnishing for a consideration of installation if
87.7the installation charges would be subject to the sales tax if the installation were provided
87.8by the seller of the item being installed.
87.9 (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
87.10to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
87.11the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
87.13 (l) A sale and a purchase includes furnishing for a consideration of specified digital
87.14products or other digital products or granting the right for a consideration to use specified
87.15digital products or other digital products on a temporary or permanent basis and regardless
87.16of whether the purchaser is required to make continued payments for such right. Wherever
87.17the term "tangible personal property" is used in this chapter, other than in subdivisions 10
87.18and 38, the provisions also apply to specified digital products, or other digital products,
87.19unless specifically provided otherwise or the context indicates otherwise.
87.20(m) The sale of the privilege of admission under section 297A.61, subdivision 3,
87.21paragraph (g), clause (1), to a place of amusement or athletic event includes all charges
87.22included in the privilege of admission's sales price, without deduction for amenities that
87.23may be provided, unless the amenities are separately stated and the purchaser of the
87.24privilege of admission is entitled to add or decline the amenities, and the amenities are not
87.25otherwise taxable.
87.26EFFECTIVE DATE.This section is effective the day following final enactment.
87.27 Sec. 2. Minnesota Statutes 2014, section 297A.66, subdivision 1, is amended to read:
87.28 Subdivision 1. Definitions. (a) To the extent allowed by the United States
87.29Constitution and the laws of the United States, "retailer maintaining a place of business in
87.30this state," or a similar term, means a retailer:
87.31(1) having or maintaining within this state, directly or by a subsidiary or an affiliate,
87.32an office, place of distribution, sales, storage, or sample room or place, warehouse, or
87.33other place of business, including the employment of a resident of this state who works
87.34from a home office in this state; or
88.1(2) having a representative, including, but not limited to, an affiliate, agent,
88.2salesperson, canvasser,
88.3this state under the authority of the retailer or its subsidiary, for any purpose, including the
88.4repairing, selling, delivering, installing, facilitating sales, processing sales, or soliciting of
88.5orders for the retailer's goods or services, or the leasing of tangible personal property located
88.6in this state, whether the place of business or agent, representative, affiliate, salesperson,
88.7canvasser, or solicitor is located in the state permanently or temporarily, or whether or not
88.8the retailer, subsidiary, or affiliate is authorized to do business in this state. A retailer is
88.9represented by a marketplace provider in this state if the retailer makes sales in this state
88.10facilitated by a marketplace provider that maintains a place of business in this state.
88.11(b) "Destination of a sale" means the location to which the retailer makes delivery of
88.12the property sold, or causes the property to be delivered, to the purchaser of the property,
88.13or to the agent or designee of the purchaser. The delivery may be made by any means,
88.14including the United States Postal Service or a for-hire carrier.
88.15(c) "Marketplace provider" means any person who facilitates a retail sale by a
88.16retailer by:
88.17(1) listing or advertising for sale by the retailer in any forum, tangible personal
88.18property, services, or digital goods that are subject to tax under this chapter; and
88.19(2) either directly or indirectly through agreements or arrangements with third
88.20parties collecting payment from the customer and transmitting that payment to the
88.21retailer regardless of whether the marketplace provider receives compensation or other
88.22consideration in exchange for its services.
88.23(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible
88.24goods, services, and digital goods subject to sales and use tax under this chapter.
88.25 Sec. 3. Minnesota Statutes 2014, section 297A.66, subdivision 2, is amended to read:
88.26 Subd. 2. Retailer maintaining place of business in this state. (a) Except as
88.27provided in paragraph (b), a retailer maintaining a place of business in this state who
88.28makes retail sales in Minnesota or to a destination in Minnesota shall collect sales and use
88.29taxes and remit them to the commissioner under section
88.30(b) A retailer with total taxable retail sales to customers in this state of less than
88.31$10,000 in the 12-month period ending on the last day of the most recently completed
88.32calendar quarter is not required to collect and remit sales tax if it is determined to be a
88.33retailer maintaining a place of business in the state solely because it made sales through
88.34one or more marketplace providers. The provisions of this paragraph do not apply to a
88.35retailer that is or was registered to collect sales and use tax in this state.
89.1 Sec. 4. Minnesota Statutes 2014, section 297A.66, subdivision 4, is amended to read:
89.2 Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes
89.3of subdivision 1, paragraph (a), if the entity:
89.4(1)
89.5facilitate the establishment or maintenance of a market for sales of items by the retailer
89.6to purchasers in this state or for the provision of services to the retailer's purchasers in
89.7this state, such as accepting returns of purchases for the retailer, providing assistance in
89.8resolving customer complaints of the retailer, or providing other services;
89.9(2)
89.10name to the retailer and sells, from a location or locations in this state, tangible personal
89.11property, digital goods, or services, taxable under this chapter, that are similar to that
89.12sold by the retailer;
89.13(3) maintains an office, distribution facility, salesroom, warehouse, storage place, or
89.14other similar place of business in this state to facilitate the delivery of tangible personal
89.15property, digital goods, or services sold by the retailer to its customers in this state;
89.16(4) maintains a place of business in this state and uses trademarks, service marks,
89.17or trade names in this state that are the same or substantially similar to those used by
89.18the retailer, and that use is done with the express or implied consent of the holder of
89.19the marks or names;
89.20(5) delivers, installs, or assembles tangible personal property in this state, or
89.21performs maintenance or repair services on tangible personal property in this state, for
89.22tangible personal property sold by the retailer;
89.23(6) facilitates the delivery of tangible personal property to customers of the retailer
89.24by allowing the customers to pick up tangible personal property sold by the retailer at a
89.25place of business the entity maintains in this state; or
89.26(7) shares management, business systems, business practices, or employees with the
89.27retailer, or engages in intercompany transactions with the retailer related to the activities
89.28that establish or maintain the market in this state of the retailer.
89.29(b) Two entities are related parties under this section if one of the entities meets at
89.30least one of the following tests with respect to the other entity:
89.31(1) one or both entities is a corporation, and one entity and any party related to that
89.32entity in a manner that would require an attribution of stock from the corporation to the
89.33party or from the party to the corporation under the attribution rules of section 318 of the
89.34Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50
89.35percent of the value of the corporation's outstanding stock;
90.1(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary,
90.2and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly,
90.3beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital,
90.4stock, or value of the other entity or both entities;
90.5(3) an individual stockholder and the members of the stockholder's family (as
90.6defined in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially,
90.7or constructively, in the aggregate, at least 50 percent of the value of both entities'
90.8outstanding stock
90.9(4) the entities are related within the meaning of subsections (b) and (c) of section
90.10267 or 707(b)(1) of the Internal Revenue Code; or
90.11(5) the entities have one or more ownership relationships and the relationships were
90.12designed with a principal purpose of avoiding the application of this section.
90.13(c) An entity is an affiliate under the provisions of this subdivision if the requirements
90.14of paragraphs (a) and (b) are met during any part of the 12-month period ending on the
90.15first day of the month before the month in which the sale was made.
90.16 Sec. 5. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision
90.17to read:
90.18 Subd. 4b. Collection and remittance requirements for marketplace providers
90.19and marketplace sellers. (a) A marketplace provider shall collect sales and use taxes
90.20and remit them to the commissioner under section 297A.77 for all facilitated sales for a
90.21retailer, and is subject to audit on the retail sales it facilitates unless the retailer either:
90.22(1) provides a copy of the seller's registration to collect sales and use tax in this state
90.23to the marketplace provider before the marketplace provider facilitates a sale; or
90.24(2) upon inquiry by the marketplace provider or its agent, the commissioner
90.25discloses that the retailer is registered to collect sales and use taxes in this state.
90.26(b) Nothing in this subdivision shall be construed to interfere with the ability of a
90.27marketplace provider and a retailer to enter into an agreement regarding fulfillment of
90.28the requirements of this chapter.
90.29(c) A marketplace provider is not liable under this subdivision for failure to file and
90.30collect and remit sales and use taxes if the marketplace provider demonstrates that the
90.31error was due to incorrect or insufficient information given to the marketplace provider by
90.32the retailer. This paragraph does not apply if the marketplace provider and the marketplace
90.33seller are related as defined in subdivision 4, paragraph (b).
90.34 Sec. 6. Minnesota Statutes 2014, section 297A.67, subdivision 7a, is amended to read:
91.1 Subd. 7a. Accessories and supplies. Accessories and supplies required for the
91.2effective use of durable medical equipment for home use only or purchased in a transaction
91.3covered by Medicare
91.4exempt under subdivision 7, are exempt. Accessories and supplies for the effective use
91.5of a prosthetic device, that are not already exempt under subdivision 7, are exempt.
91.6For purposes of this subdivision "durable medical equipment," "prosthetic device,"
91.7"Medicare," and "Medicaid" have the definitions given in subdivision 7
91.8insurance plan" means a health plan defined in section 62A.011, subdivision 3, or 62V.02,
91.9subdivision 4, or a qualified health plan defined in section 62A.011, subdivision 7.
91.10EFFECTIVE DATE.This section is effective for sales and purchases made after
91.11June 30, 2016.
91.12 Sec. 7. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision
91.13to read:
91.14 Subd. 34. Suite licenses. The sale of the privilege of admission under section
91.15297A.61, subdivision 3, paragraph (g), clause (1), to a place of amusement or athletic
91.16event does not include consideration paid for a license to use a private suite, private
91.17skybox, or private box seat provided that: (1) the lessee may use the private suite, private
91.18skybox, or private box seat by mutual arrangement with the lessor on days when there is
91.19no amusement or athletic event; and (2) the sales price for the privilege of admission is
91.20separately stated and is equal to or greater than the highest priced general admission ticket
91.21for the closest seat not in the private suite, private skybox, or private box seat.
91.22EFFECTIVE DATE.This section is effective for sales and purchases made after
91.23June 30, 2016.
91.24 Sec. 8. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision
91.25to read:
91.26 Subd. 35. Stadium builder's licenses. The sale of the privilege of admission under
91.27section 297A.61, subdivision 3, paragraph (g), clause (1), does not include consideration
91.28paid for a stadium builder's license authorized under section 473J.15, subdivision 14.
91.29EFFECTIVE DATE.This section is effective the day following final enactment.
91.30 Sec. 9. Minnesota Statutes 2014, section 297A.68, subdivision 9, is amended to read:
91.31 Subd. 9. Super Bowl admissions and related events. (a) The granting of the
91.32privilege of admission to a world championship football game sponsored by the National
92.1Football League
92.2affiliates, or the Minnesota Super Bowl Host Committee, are exempt.
92.3(b) The sale of nonresidential parking by the National Football League for
92.4attendance at a world championship football game sponsored by the National Football
92.5League and for related events sponsored by the National Football League or its affiliates,
92.6or the Minnesota Super Bowl Host Committee, is exempt.
92.7(c) For the purposes of this subdivision:
92.8(1) "related events sponsored by the National Football League or its affiliates"
92.9includes but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate,
92.10NFL On Location, and NFL House; and
92.11(2) "affiliates" does not include National Football League teams.
92.12EFFECTIVE DATE.The amendments to this section are effective for sales and
92.13purchases made after June 30, 2016, and before March 1, 2018.
92.14 Sec. 10. Minnesota Statutes 2014, section 297A.70, subdivision 14, is amended to read:
92.15 Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of
92.16tangible personal property or services at, and admission charges for fund-raising events
92.17sponsored by, a nonprofit organization are exempt if:
92.18(1) all gross receipts are recorded as such, in accordance with generally accepted
92.19accounting practices, on the books of the nonprofit organization; and
92.20(2) the entire proceeds, less the necessary expenses for the event, will be used solely
92.21and exclusively for charitable, religious, or educational purposes. Exempt sales include
92.22the sale of prepared food, candy, and soft drinks at the fund-raising event.
92.23(b) This exemption is limited in the following manner:
92.24(1) it does not apply to admission charges for events involving bingo or other
92.25gambling activities or to charges for use of amusement devices involving bingo or other
92.26gambling activities;
92.27(2) all gross receipts are taxable if the profits are not used solely and exclusively for
92.28charitable, religious, or educational purposes;
92.29(3) it does not apply unless the organization keeps a separate accounting record,
92.30including receipts and disbursements from each fund-raising event that documents all
92.31deductions from gross receipts with receipts and other records;
92.32(4) it does not apply to any sale made by or in the name of a nonprofit corporation as
92.33the active or passive agent of a person that is not a nonprofit corporation;
92.34(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
93.1(6) it does not apply to fund-raising events conducted on premises leased for more
93.2than
93.3(7) it does not apply if the risk of the event is not borne by the nonprofit organization
93.4and the benefit to the nonprofit organization is less than the total amount of the state and
93.5local tax revenues forgone by this exemption.
93.6(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
93.7government, corporation, society, association, foundation, or institution organized and
93.8operated for charitable, religious, educational, civic, fraternal, and senior citizens' or
93.9veterans' purposes, no part of the net earnings of which inures to the benefit of a private
93.10individual.
93.11(d) For purposes of this subdivision, "fund-raising events" means activities of
93.12limited duration, not regularly carried out in the normal course of business, that attract
93.13patrons for community, social, and entertainment purposes, such as auctions, bake sales,
93.14ice cream socials, block parties, carnivals, competitions, concerts, concession stands,
93.15craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion
93.16shows, festivals, galas, special event workshops, sporting activities such as marathons and
93.17tournaments, and similar events. Fund-raising events do not include the operation of a
93.18regular place of business in which services are provided or sales are made during regular
93.19hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales,
93.20regularly scheduled classes, or other activities carried out in the normal course of business.
93.21EFFECTIVE DATE.This section is effective for sales and purchases made after
93.22June 30, 2016.
93.23 Sec. 11. Minnesota Statutes 2014, section 297A.71, is amended by adding a
93.24subdivision to read:
93.25 Subd. 49. Siding production facility materials. Building materials and supplies
93.26for constructing a siding production facility that can produce at least 400,000,000 square
93.27feet of siding per year are exempt. The tax must be imposed and collected as if the rate
93.28under section 297A.62, subdivision 1, applied, and then refunded in the manner provided
93.29in section 297A.75.
93.30EFFECTIVE DATE.This section is effective for sales and purchases made after
93.31June 30, 2016.
93.32 Sec. 12. Minnesota Statutes 2014, section 297A.71, is amended by adding a
93.33subdivision to read:
94.1 Subd. 50. Properties destroyed by fire. Building materials and supplies used in,
94.2and equipment incorporated into, the construction or replacement of real property that is
94.3located in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be
94.4imposed and collected as if the rate under section 297A.62, subdivision 1, applied and
94.5then refunded in the manner provided in section 297A.75.
94.6EFFECTIVE DATE.This section is effective for sales and purchases made after
94.7June 30, 2016, and before July 1, 2018.
94.8 Sec. 13. Minnesota Statutes 2014, section 297A.71, is amended by adding a
94.9subdivision to read:
94.10 Subd. 51. Former Duluth Central High School. Materials and supplies used
94.11in and equipment incorporated into a private redevelopment project on the site of the
94.12former Duluth Central High School are exempt, provided the resulting development is
94.13subject to property taxes. The tax must be imposed and collected as if the rate under
94.14section 297A.62, subdivision 1, applied and then refunded in the manner provided in
94.15section 297A.75. The commissioner must not pay more than $5,000,000 in refunds for
94.16purchases exempt under this section. Refunds must be processed and issued in the order
94.17that complete and accurate applications are received by the commissioner.
94.18EFFECTIVE DATE.This section is effective for sales and purchases made after
94.19June 30, 2016, and before January 1, 2018.
94.20 Sec. 14. Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read:
94.21 Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the
94.22following exempt items must be imposed and collected as if the sale were taxable and the
94.23rate under section
94.24 (1) building materials for an agricultural processing facility exempt under section
94.26 (2) building materials for mineral production facilities exempt under section
94.28 (3) building materials for correctional facilities under section
94.29 (4) building materials used in a residence for disabled veterans exempt under section
94.31 (5) elevators and building materials exempt under section
94.32 (6) materials and supplies for qualified low-income housing under section
94.33subdivision 23
95.1 (7) materials, supplies, and equipment for municipal electric utility facilities under
95.2section
95.3 (8) equipment and materials used for the generation, transmission, and distribution
95.4of electrical energy and an aerial camera package exempt under section
95.5subdivision 37;
95.6 (9) commuter rail vehicle and repair parts under section
95.7paragraph (a), clause (10);
95.8 (10) materials, supplies, and equipment for construction or improvement of projects
95.9and facilities under section
95.10(11) materials, supplies, and equipment for construction, improvement, or expansion
95.11of:
95.12(i) an aerospace defense manufacturing facility exempt under section
95.13subdivision 42
95.14(ii) a biopharmaceutical manufacturing facility exempt under section
95.15subdivision 45
95.16(iii) a research and development facility exempt under section
95.1746
95.18(iv) an industrial measurement manufacturing and controls facility exempt under
95.19section
95.20(12) enterprise information technology equipment and computer software for use in
95.21a qualified data center exempt under section
95.22(13) materials, supplies, and equipment for qualifying capital projects under section
95.24(14) items purchased for use in providing critical access dental services exempt
95.25under section
95.26(15) items and services purchased under a business subsidy agreement for use or
95.27consumption primarily in greater Minnesota exempt under section
95.28(16) building materials and supplies for constructing a siding facility exempt under
95.29section 297A.71, subdivision 49;
95.30(17) building materials, equipment, and supplies for constructing or replacing real
95.31property exempt under section 297A.71, subdivision 50; and
95.32(18) materials and supplies used in and equipment incorporated into a private
95.33redevelopment project exempt under section 297A.71, subdivision 51.
95.34EFFECTIVE DATE.Clause (16) is effective for sales and purchases made after
95.35June 30, 2016. Clause (17) is effective for sales and purchases made after June 30, 2016,
96.1and before July 1, 2018. Clause (18) is effective for sales and purchases made after June
96.230, 2016, and before January 1, 2018.
96.3 Sec. 15. Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read:
96.4 Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
96.5commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
96.6must be paid to the applicant. Only the following persons may apply for the refund:
96.7 (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
96.8 (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
96.9 (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
96.10provided in United States Code, title 38, chapter 21;
96.11 (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
96.12property;
96.13 (5) for subdivision 1, clause (6), the owner of the qualified low-income housing
96.14project;
96.15 (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or
96.16a joint venture of municipal electric utilities;
96.17 (7) for subdivision 1, clauses (8), (11), (12),
96.18qualifying business;
96.19 (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the
96.20governmental entity that owns or contracts for the project or facility; and
96.21 (9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or
96.22developer of the building or project.
96.23EFFECTIVE DATE.The change to clause (7) is effective for sales and purchases
96.24made after June 30, 2016. Clause (9) is effective for sales and purchases made after June
96.2530, 2016, and before July 1, 2018, as it pertains to Minnesota Statutes, section 297A.71,
96.26subdivision 1, clause (17), and for sales and purchases made after June 30, 2016, and
96.27before January 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision
96.281, clause (18).
96.29 Sec. 16. Minnesota Statutes 2014, section 297A.75, subdivision 3, is amended to read:
96.30 Subd. 3. Application. (a) The application must include sufficient information
96.31to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
96.32subcontractor, or builder, under subdivision 1, clauses (3) to (13), or (15)
96.33contractor, subcontractor, or builder must furnish to the refund applicant a statement
96.34including the cost of the exempt items and the taxes paid on the items unless otherwise
97.1specifically provided by this subdivision. The provisions of sections
97.3 (b) An applicant may not file more than two applications per calendar year for
97.4refunds for taxes paid on capital equipment exempt under section
97.5EFFECTIVE DATE.This section is effective for sales and purchases made after
97.6June 30, 2016.
97.7 Sec. 17. Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read:
97.8 Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision,
97.9"net revenue" means an amount equal to the revenues, including interest and penalties,
97.10collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.
97.11 (b) On or before June 30 of each fiscal year, the commissioner of revenue shall
97.12estimate the amount of the net revenue for the current fiscal year.
97.13 (c) On or after July 1 of the subsequent fiscal year, the commissioner of management
97.14and budget shall transfer the net revenue as estimated in paragraph (b) from the general
97.15fund, as follows:
97.16 (1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to
97.17the county state-aid highway fund. Notwithstanding any other law to the contrary, the
97.18commissioner of transportation shall allocate the funds transferred under this clause to the
97.19counties in the metropolitan area, as defined in section
97.20the counties of Hennepin and Ramsey, so that each county shall receive of such amount
97.21the percentage that its population, as defined in section
97.22or established by July 15 of the year prior to the current calendar year, bears to the total
97.23population of the counties receiving funds under this clause; and
97.24 (2) the remainder to the greater Minnesota transit account.
97.25(d) The revenues deposited under this subdivision do not include the revenues,
97.26including interest and penalties, generated by the sales tax imposed under section
97.27297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
97.28Constitution, article XI, section 15.
97.29EFFECTIVE DATE.This section is effective beginning with the estimate that must
97.30be completed on or before June 30, 2017, for a transfer that occurs on or after July 1, 2017,
97.31except paragraph (c) is effective the day following final enactment.
97.32 Sec. 18. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
97.33chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws
98.12003, First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154,
98.2article 5, section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
98.3 Subd. 2. (a) Notwithstanding Minnesota Statutes, section
98.4law, ordinance, or city charter provision to the contrary, the city of Duluth may, by
98.5ordinance, impose an additional sales tax of up to one and three-quarter percent on sales
98.6transactions which are described in Minnesota Statutes 2000, section
98.73, clause (c). The imposition of this tax shall not be subject to voter referendum under
98.8either state law or city charter provisions. When the city council determines that the taxes
98.9imposed under this paragraph at a rate of three-quarters of one percent and other sources
98.10of revenue produce revenue sufficient to pay debt service on bonds in the principal amount
98.11of $40,285,000 plus issuance and discount costs, issued for capital improvements at the
98.12Duluth Entertainment and Convention Center, which include a new arena, the rate of tax
98.13under this subdivision must be reduced by three-quarters of one percent.
98.14(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
98.15section
98.16the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of
98.17one percent on sales transactions which are described in Minnesota Statutes 2000, section
98.19that the tax imposed under this paragraph, along with the tax imposed under section
98.2022, paragraph (b), has produced revenues sufficient to pay the debt service on bonds
98.21in a principal amount of no more than $18,000,000, plus issuance and discount costs,
98.22to finance capital improvements to public facilities to support tourism and recreational
98.23activities in that portion of the city west of
98.24and including Skyline Parkway.
98.25(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation
98.26bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for the
98.27costs of issuance and any premiums. The proceeds may be used to finance capital
98.28improvements to public facilities that support tourism and recreational activities in the
98.29portion of the city west of
98.30Skyline Parkway, as described in paragraph (b). The issuance of the bonds is subject to the
98.31provisions of Minnesota Statutes, chapter 475, except no election shall be required unless
98.32required by the city charter. The bonds shall not be included in computing net debt. The
98.33revenues from the taxes that the city of Duluth may impose under paragraph (b) and under
98.34section 22, paragraph (b), may be pledged to pay principal of and interest on such bonds.
99.1EFFECTIVE DATE.This section is effective the day after the governing body of
99.2the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
99.3645.021, subdivisions 2 and 3.
99.4 Sec. 19. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389,
99.5article 8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and
99.6Laws 2014, chapter 308, article 3, section 22, is amended to read:
99.7 Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND
99.8MOTELS.
99.9 (a) Notwithstanding Minnesota Statutes, section
99.10ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
99.11impose an additional tax of one percent upon the gross receipts from the sale of lodging
99.12for periods of less than 30 days in hotels and motels located in the city. The tax shall be
99.13collected in the same manner as the tax set forth in the Duluth city charter, section 54(d),
99.14paragraph one. The imposition of this tax shall not be subject to voter referendum under
99.15either state law or city charter provisions.
99.16(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
99.17section
99.18the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half
99.19of one percent on the gross receipts from the sale of lodging for periods of less than
99.2030 days in hotels and motels located in the city. This tax expires when the city council
99.21first determines that the tax imposed under this paragraph, along with the tax imposed
99.22under section 21, paragraph (b), has produced revenues sufficient to pay the debt
99.23service on bonds in a principal amount of no more than $18,000,000, plus issuance and
99.24discount costs, to finance capital improvements to public facilities to support tourism and
99.25recreational activities in that portion of the city west of
99.26area south of and including Skyline Parkway.
99.27EFFECTIVE DATE.This section is effective the day after the governing body of
99.28the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
99.29645.021, subdivisions 2 and 3.
99.30 Sec. 20. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by
99.31Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9,
99.32and Laws 2009, chapter 88, article 4, section 14, is amended to read:
99.33 Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by
99.34subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax and to
100.1pay all or a portion of the expenses of constructing and improving facilities as part of an
100.2urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized
100.3expenses include, but are not limited to, acquiring property and paying relocation expenses
100.4related to the development of Riverfront 2000 and related facilities, and securing or paying
100.5debt service on bonds or other obligations issued to finance the construction of Riverfront
100.62000 and related facilities. For purposes of this section, "Riverfront 2000 and related
100.7facilities" means a civic-convention center, an arena, a riverfront park, a technology center
100.8and related educational facilities, and all publicly owned real or personal property that
100.9the governing body of the city determines will be necessary to facilitate the use of these
100.10facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and
100.11landscaping. It also includes the performing arts theatre and the Southern Minnesota
100.12Women's Hockey Exposition Center, for use by Minnesota State University, Mankato.
100.13 (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and subject
100.14to voter approval at a general election held before December 31, 2018; provided that the
100.15sales tax in the city of North Mankato is also extended at the same general election, the
100.16city may by ordinance also use revenues from taxes authorized under subdivisions 1 and
100.172, up to a maximum of $47,000,000, plus associated bond costs, to pay all or a portion of
100.18the expenses of the following capital projects:
100.19 (1) construction and improvements to regional recreational facilities including
100.20existing hockey and curling rinks, a baseball park, youth athletic fields and facilities, the
100.21municipal swimming pool including improvements to make the pool compliant with the
100.22Americans with Disabilities Act, and indoor regional athletic facilities;
100.23 (2) improvements to flood control and the levee system;
100.24(3) water quality improvement projects in Blue Earth and Nicollet Counties;
100.25(4) expansion of the regional transit building and related multimodal transit
100.26improvements;
100.27(5) regional public safety and emergency communications improvements and
100.28equipment; and
100.29(6) matching funds for improvements to publicly owned regional facilities including
100.30a historic museum, supportive housing, and a senior center.
100.31EFFECTIVE DATE.This section is effective the day after the governing body of
100.32the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
100.33645.021, subdivisions 2 and 3.
101.1 Sec. 21. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by
101.2Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter
101.3366, article 7, section 10, is amended to read:
101.4 Subd. 4. Expiration of taxing authority and expenditure limitation. The
101.5authority granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax
101.6shall expire
101.7interest and all other associated bond costs authorized under subdivision 5, or December 31,
101.82022, unless the additional uses under subdivision 3, paragraph (b) or (c), are authorized.
101.9If the additional use allowed in subdivision 3, paragraph (b), is authorized, the taxes expire
101.10at the earlier of when revenues are sufficient to pay off the bonds, including interest and
101.11all other associated bond costs authorized under subdivision 5, or December 31, 2038.
101.12EFFECTIVE DATE.This section is effective the day following final enactment
101.13without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
101.14 Sec. 22. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
101.15 Subd. 5. Bonds. (a) The city of Mankato may issue general obligation bonds of the
101.16city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities,
101.17without election under Minnesota Statutes, chapter 475, on the question of issuance of the
101.18bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000
101.19and related facilities shall not be included in computing any debt limitations applicable
101.20to the city of Mankato, and the levy of taxes required by section
101.21of and interest on the bonds shall not be subject to any levy limitation or be included in
101.22computing or applying any levy limitation applicable to the city.
101.23 (b) The city of Mankato, subject to voter approval at the election required under
101.24subdivision 3, paragraph (b), may issue general obligation bonds of the city in an amount
101.25not to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b),
101.26without election under Minnesota Statutes, chapter 475, on the question of issuance of the
101.27bonds or a tax to pay them. The debt represented by bonds under this paragraph shall not be
101.28included in computing any debt limitations applicable to the city of Mankato, and the levy
101.29of taxes required by Minnesota Statutes, section
101.30the bonds, and shall not be subject to any levy limitation or be included in computing or
101.31applying any levy limitation applicable to the city. The city may use tax revenue in excess
101.32of one year's principal interest reserve for intended annual bond payments to pay all or a
101.33portion of the cost of capital improvements authorized in subdivision 3.
102.1EFFECTIVE DATE.This section is effective the day following final enactment
102.2without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
102.3 Sec. 23. Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read:
102.4 Subd. 6. Reverse referendum; authorization of extension. (a) If the Mankato city
102.5council intends to exercise the authority provided by this section, it shall pass a resolution
102.6stating the fact before July 1, 1991. The resolution must be published for two successive
102.7weeks in the official newspaper of the city or, if there is no official newspaper, in a
102.8newspaper of general circulation in the city, together with a notice fixing a date for a public
102.9hearing on the matter. The hearing must be held at least two weeks but not more than four
102.10weeks after the first publication of the resolution. Following the public hearing, the city
102.11may determine to take no further action or adopt a resolution confirming its intention to
102.12exercise the authority. That resolution must also be published in the official newspaper of
102.13the city or, if there is no official newspaper, in a newspaper of general circulation in the
102.14city. If within 30 days after publication of the resolution a petition signed by voters equal
102.15in number to ten percent of the votes cast in the city in the last general election requesting
102.16a vote on the proposed resolution is filed with the county auditor, the resolution is not
102.17effective until it has been submitted to the voters at a general or special election and a
102.18majority of votes cast on the question of approving the resolution are in the affirmative. The
102.19commissioner of revenue shall prepare a suggested form of question to be presented at the
102.20election. The referendum must be held at a special or general election before December 1,
102.211991. This subdivision applies notwithstanding any city charter provision to the contrary.
102.22 (b) If the Mankato city council wishes to extend the taxes authorized under
102.23subdivisions 1 and 2 to fund any of the projects listed in subdivision 3, paragraph (b), the
102.24city must pass a resolution extending the taxes before July 1, 2016. The tax may not be
102.25imposed unless approved by the voters.
102.26EFFECTIVE DATE.This section is effective the day following final enactment
102.27without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
102.28 Sec. 24. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by
102.29Laws 2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter
102.307, article 4, section 4, is amended to read:
102.31 Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes,
102.32section 477A.016, or any other contrary provision of law, ordinance, or city charter, the
102.33city of Hermantown may, by ordinance, impose an additional sales tax of up to one percent
102.34on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur
103.1within the city. The proceeds of the tax imposed under this section must be used to pay
103.2the cost of collection of the tax and to meet the costs, including principal, interest, and
103.3premiums of bonds used in the finance of:
103.4 (1) extending a sewer interceptor line;
103.5 (2) construction of a booster pump station, reservoirs, and related improvements
103.6to the water system;
103.7 (3) construction of a building containing a police and fire station and an
103.8administrative services facility; and
103.9 (4) construction and equipping of a regional, multiuse wellness center.
103.10(b) If the city imposed a sales tax of only one-half of one percent under paragraph
103.11(a), it may increase the tax to one percent to fund the purposes under paragraph (a)
103.12provided it is approved by the voters at a general election held before December 31, 2012.
103.13(c) The tax imposed in paragraph (a) may only be used to fund projects listed in
103.14paragraph (a), clause (4), if approved by the local voters at the November 8, 2016, general
103.15election. Revenue raised from the tax imposed under this subdivision in every year must
103.16first be used to meet obligations in that year related to the projects in paragraph (a), clauses
103.17(1) to (3), with excess revenues available to fund the projects in paragraph (a), clause (4).
103.18EFFECTIVE DATE.This section is effective the day after the governing body of
103.19the city of Hermantown and its chief clerical officer comply with Minnesota Statutes,
103.20section 645.021, subdivisions 2 and 3.
103.21 Sec. 25. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by
103.22Laws 2006, chapter 259, article 3, section 4, is amended to read:
103.23 Subd. 4. Termination. The tax authorized under this section terminates on March
103.2431, 2026, unless the additional use under subdivision 1, paragraph (a), is approved
103.25as required under subdivision 1, paragraph (c). If the additional project is approved
103.26as required under subdivision 1, paragraph (c), the tax authorized under this section
103.27terminates at the earlier of (1) December 31, 2036, or (2) when the Hermantown City
103.28Council first determines that sufficient funds have been received from the tax to fund the
103.29costs, including bonds and associated bond costs for the uses specified in subdivision 1,
103.30paragraph (a). Any funds remaining after completion of the improvements and retirement
103.31or redemption of the bonds may be placed in the general fund of the city.
103.32EFFECTIVE DATE.This section is effective the day following final enactment
103.33without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
104.1 Sec. 26. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by
104.2Laws 2008, chapter 366, article 7, section 12, is amended to read:
104.3 Subdivision 1. Sales and use tax. (a) Notwithstanding Minnesota Statutes, section
104.5voters at the first municipal general election held after the date of final enactment of this act
104.6or at a special election held November 2, 1999, the city of Proctor may impose by ordinance
104.7a sales and use tax of up to one-half of one percent for the purposes specified in subdivision
104.83. The provisions of Minnesota Statutes, section
104.9administration, collection, and enforcement of the tax authorized under this subdivision.
104.10(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
104.11law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional
104.12sales and use tax of up to one-half of one percent as approved by the voters at the
104.13November 4, 2014, general election. The revenues received from the additional tax must
104.14be used for the purposes specified in subdivision 3, paragraph (b).
104.15EFFECTIVE DATE.This section is effective the day after the governing body of
104.16the city of Proctor and its chief clerical officer comply with Minnesota Statutes, section
104.17645.021, subdivisions 2 and 3, but only if the local approval requirement under section
104.1810 is also met.
104.19 Sec. 27. Laws 2008, chapter 366, article 7, section 20, is amended to read:
104.20 Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
104.21 Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
104.22section
104.23the approval of the voters on November 7, 2006, the city of North Mankato may impose
104.24by ordinance a sales and use tax of one-half of one percent for the purposes specified
104.25in subdivision 2. The provisions of Minnesota Statutes, section
104.26imposition, administration, collection, and enforcement of the taxes authorized under
104.27this subdivision.
104.28 Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by
104.29subdivision 1 must be used to pay all or part of the capital costs of the following projects:
104.30 (1) the local share of the Trunk Highway 14/County State-Aid Highway 41
104.31interchange project;
104.32 (2) development of regional parks and hiking and biking trails, including
104.33construction of indoor regional athletic facilities;
104.34 (3) expansion of the North Mankato Taylor Library;
104.35 (4) riverfront redevelopment; and
105.1 (5) lake improvement projects.
105.2 The total amount of revenues from the tax in subdivision 1 that may be used to fund
105.3these projects is $6,000,000 plus any associated bond costs.
105.4 (b) If the city extends the tax as authorized under subdivision 2a, the total amount that
105.5may be used to fund these projects is increased by $9,000,000, plus associated bond costs.
105.6 Subd. 2a. Authorization to extend the tax. Notwithstanding Minnesota Statutes,
105.7section 297A.99, subdivision 3, the North Mankato city council may, by resolution, extend
105.8the tax authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus
105.9associated bond costs, to fund the projects in subdivision 2, paragraph (a), if approved by
105.10the voters at a general election held before December 31, 2018; provided that the sales tax
105.11in the city of Mankato is also extended at the same general election.
105.12 Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the
105.13voters at the November 7, 2006 referendum authorizing the imposition of the taxes in
105.14this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and
105.15administrative expenses for the projects described in subdivision 2, paragraph (a), in an
105.16amount that does not exceed $6,000,000. A separate election to approve the bonds under
105.17Minnesota Statutes, section
105.18(b) The city of North Mankato, subject to the referendum in subdivision 2a, allowing
105.19for additional revenue to be spent for the projects in subdivision 2, may issue additional
105.20bonds under Minnesota Statutes, chapter 475, to pay capital and administrative expenses
105.21for those projects in an amount that does not exceed $9,000,000. A separate election to
105.22approve the bonds under Minnesota Statutes, section
105.23
105.24limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section
105.26 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when
105.27the city council determines that the amount of revenues received from the taxes to pay for
105.28the projects under subdivision 2, paragraph (a), first equals or exceeds $6,000,000 plus the
105.29additional amount needed to pay the costs related to issuance of bonds under subdivision
105.303, including interest on the bonds, unless the tax is extended as allowed in this section. If
105.31the tax is extended as allowed under the referendum under subdivision 2a, the tax expires
105.32at the earlier of December 31, 2038, or when revenues from the taxes first equal or exceed
105.33$15,000,000 plus the additional amount needed to pay costs related to issuance of bonds
105.34under subdivision 3, including interest. Any funds remaining after completion of the
105.35projects and retirement or redemption of the bonds shall be placed in a capital facilities
106.1and equipment replacement fund of the city. The tax imposed under subdivision 1 may
106.2expire at an earlier time if the city so determines by ordinance.
106.3EFFECTIVE DATE.This section is effective the day after the governing body of
106.4the city of North Mankato and its chief clerical officer comply with Minnesota Statutes,
106.5section 645.021, subdivisions 2 and 3.
106.6 Sec. 28. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
106.7 Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota
106.8Statutes, section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance,
106.9or city charter, and as approved by the voters at a special election on March 7, 2016, the
106.10city of East Grand Forks may impose, by ordinance, a sales and use tax of up to one
106.11percent for the purposes specified in subdivision 2. Except as otherwise provided in this
106.12section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
106.13administration, collection, and enforcement of the tax authorized under this subdivision.
106.14 Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax
106.15authorized under subdivision 1 must be used by the city of East Grand Forks to pay the
106.16costs of collecting and administering the tax and to finance the capital and administrative
106.17costs of improvement to the city public swimming pool. Authorized expenses include,
106.18but are not limited to, paying construction expenses related to the renovation and the
106.19development of these facilities and improvements, and securing and paying debt service
106.20on bonds issued under subdivision 3 or other obligations issued to finance improvement of
106.21the public swimming pool in the city of East Grand Forks
106.22 Subd. 3. Bonding authority. (a) The city of East Grand Forks may issue bonds
106.23under Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the
106.24facilities authorized in subdivision 2. The aggregate principal amount of bonds issued
106.25under this subdivision may not exceed $2,820,000, plus an amount to be applied to the
106.26payment of the costs of issuing the bonds. The bonds may be paid from or secured by
106.27any funds available to the city of East Grand Forks, including the tax authorized under
106.28subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
106.29Statutes, sections 275.60 and 275.61.
106.30(b) The bonds are not included in computing any debt limitation applicable to the
106.31city of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61,
106.32to pay principal and interest on the bonds is not subject to any levy limitation. A separate
106.33election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
107.1 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at
107.2the later of: (1) five years after the tax is first imposed; or (2) when the city council
107.3determines that $2,820,000 has been received from the tax to pay for the cost of the
107.4projects authorized under subdivision 2, plus an amount sufficient to pay the costs related
107.5to issuance of the bonds authorized under subdivision 3, including interest on the bonds.
107.6Any funds remaining after payment of all such costs and retirement or redemption of the
107.7bonds shall be placed in the general fund of the city. The tax imposed under subdivision 1
107.8may expire at an earlier time if the city so determines by ordinance.
107.9EFFECTIVE DATE.This section is effective the day after compliance by the
107.10governing body of the city of East Grand Forks with Minnesota Statutes, section 645.021,
107.11subdivisions 2 and 3.
107.12 Sec. 29. CITY OF MARSHALL; VALIDATION OF PRIOR ACT.
107.13(a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city
107.14of Marshall may approve Laws 2011, First Special Session chapter 7, article 4, section
107.1514, and file its approval with the secretary of state by June 15, 2013. If approved as
107.16authorized under this paragraph, actions undertaken by the city as approved by the voters
107.17on November 6, 2012, and otherwise in accordance with Laws 2011, First Special Session
107.18chapter 7, article 4, section 14, are validated.
107.19(b) Notwithstanding the time limit on the imposition of tax under Laws 2011, First
107.20Special Session chapter 7, article 4, section 14, and subject to local approval under
107.21paragraph (a), the city of Marshall may impose the tax on or before July 1, 2013.
107.22EFFECTIVE DATE.This section is effective the day following final enactment.
107.23 Sec. 30. CERTAIN REIMBURSEMENT AUTHORIZED; CONSIDERED
107.24OPERATING OR CAPITAL EXPENSES.
107.25 Subdivision 1. Reimbursement authorized. (a) An amount equivalent to the taxes
107.26paid under Minnesota Statutes, chapter 297A, and any local taxes administered by the
107.27Department of Revenue, on purchases of tangible personal property, nonresidential
107.28parking services, and lodging, as these terms are defined in Minnesota Statutes, chapter
107.29297A, used and consumed in connection with Super Bowl LII or related events sponsored
107.30by the National Football League or its affiliates, will be reimbursed by the Minnesota
107.31Sports Facilities Authority up to $1,600,000, if made after June 30, 2016, and before
107.32March 1, 2018. Only purchases made by the Minnesota Super Bowl Host Committee, the
108.1National Football League or its affiliates, or their employees or independent contractors,
108.2qualify to be reimbursed under this section.
108.3(b) For purposes of this subdivision:
108.4(1) "employee or independent contractor" means only those employees or
108.5independent contractors that make qualifying purchases that are reimbursed by the
108.6Minnesota Super Bowl Host Committee or the National Football League or its affiliates; and
108.7(2) "related events sponsored by the National Football League or its affiliates"
108.8includes but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate,
108.9NFL Honors, and NFL House.
108.10 Subd. 2. Operating reserve and capital reserve fund. Notwithstanding the
108.11requirements of Minnesota Statutes, section 473J.13, subdivisions 2 and 4, up to
108.12$1,600,000 of the balance in the operating reserve or capital reserve fund may be used for
108.13the purposes of paying reimbursements authorized under subdivision 1.
108.14EFFECTIVE DATE.This section is effective for sales and purchases made after
108.15June 30, 2016, and before March 1, 2018.
108.16 Sec. 31. SEVERABILITY.
108.17If any provision of sections 2 to 5 or the application thereof is held invalid, such
108.18invalidity shall not affect the provisions or applications of the sections that can be given
108.19effect without the invalid provisions or applications.
108.20EFFECTIVE DATE.This section is effective the day following final enactment.
108.21 Sec. 32. EFFECTIVE DATE.
108.22(a) The provisions of sections 2 to 5 are effective at the earlier of:
108.23(1) a decision by the United States Supreme Court modifying its decision in Quill
108.24Corp. v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a
108.25physical presence in the state to collect and remit sales tax; or
108.26(2) July 1, 2019.
108.27(b) Notwithstanding paragraph (a) or the provisions of sections 1 to 4, if a federal
108.28law is enacted authorizing a state to impose a requirement to collect and remit sales tax
108.29on retailers without a physical presence in the state, the commissioner must enforce the
108.30provisions of this section and sections 1 to 4 to the extent allowed under federal law.
108.31(c) The commissioner of revenue shall notify the revisor of statutes when either of
108.32the provisions in paragraph (a) or (b) apply.
109.3 Section 1. Minnesota Statutes 2014, section 296A.01, subdivision 12, is amended to
109.4read:
109.5 Subd. 12. Compressed natural gas or CNG. "Compressed natural gas" or "CNG"
109.6means natural gas, primarily methane, condensed under high pressure and stored in
109.7specially designed storage tanks at between 2,000 and 3,600 pounds per square inch.
109.8For purposes of this chapter, the energy content of CNG is considered to be
109.9BTUs per cubic foot.
109.10EFFECTIVE DATE.This section is effective for sales and purchases made after
109.11June 30, 2016.
109.12 Sec. 2. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision
109.13to read:
109.14 Subd. 13a. Dealer of gasoline used as a substitute for aviation gasoline. "Dealer
109.15of gasoline used as a substitute for aviation gasoline" means any person who sells gasoline
109.16on the premises of an airport as defined under section 360.013, subdivision 39, to be
109.17dispensed directly into the fuel tank of an aircraft.
109.18EFFECTIVE DATE.This section is effective for sales and purchases made after
109.19June 30, 2016.
109.20 Sec. 3. Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read:
109.21 Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or
109.22denatured ethanol purchased by:
109.23 (1) a transit system or transit provider receiving financial assistance or
109.24reimbursement under section
109.25 (2) providers of transportation to recipients of medical assistance home and
109.26community-based services waivers enrolled in day programs, including adult day care,
109.27family adult day care, day treatment and habilitation, prevocational services, and
109.28structured day services;
109.29(3) an ambulance service licensed under chapter 144E;
109.30(4) providers of medical or dental services by a federally qualified health center,
109.31as defined under title 19 of the Social Security Act, as amended by Section 4161 of the
109.32Omnibus Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a
109.33mobile medical unit;
110.1 (5) a licensed distributor to be delivered to a terminal for use in blending; or
110.2 (6) a dealer of gasoline used as a substitute for aviation gasoline.
110.3EFFECTIVE DATE.This section is effective for sales and purchases made after
110.4June 30, 2016.
110.5 Sec. 4. Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read:
110.6 Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates:
110.7 (a) Liquefied petroleum gas or propane is taxed at the rate of
110.8 (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
110.9 (c) Compressed natural gas is taxed at the rate of
110.10feet; or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline
110.11equivalent," as defined by the National Conference on Weights and Measures, is 5.66
110.12pounds of natural gas or 126.67 cubic feet.
110.13 (d) All other special fuel is taxed at the same rate as the gasoline excise tax as
110.14specified in section
110.15prescribed by the commissioner.
110.16EFFECTIVE DATE.This section is effective for sales and purchases made after
110.17June 30, 2016.
110.18 Sec. 5. Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read:
110.19 Subdivision 1. Gasoline tax imposed. Subject to any refunds or credits there is
110.20imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline received,
110.21sold, stored, or withdrawn from storage in this state and on all gasoline used as a substitute
110.22for aviation gasoline. Aviation gasoline is defined in section
110.23EFFECTIVE DATE.This section is effective for sales and purchases made after
110.24June 30, 2016.
110.25 Sec. 6. Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read:
110.26 Subd. 3. Exception to tax for aviation use. The provisions of subdivisions 1 and 2
110.27do not apply to gasoline used as a substitute for aviation gasoline, aviation gasoline, or
110.28special fuel purchased and placed in the fuel tanks of an aircraft outside the state, even
110.29though the gasoline may be consumed within this state.
110.30EFFECTIVE DATE.This section is effective for sales and purchases made after
110.31June 30, 2016.
111.1 Sec. 7. Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read:
111.2 Subd. 5. Tax not on consumption. The taxes imposed by subdivisions 1 and 2 are
111.3expressly declared not to be a tax upon consumption of gasoline used as a substitute for
111.4aviation gasoline, aviation gasoline, or special fuel by an aircraft.
111.5EFFECTIVE DATE.This section is effective for sales and purchases made after
111.6June 30, 2016.
111.7 Sec. 8. Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read:
111.8 Subd. 6. Exemptions. The provisions of subdivisions 1 and 2 do not apply to
111.9gasoline used as a substitute for aviation gasoline, aviation gasoline, or jet fuel purchased
111.10by an ambulance service licensed under chapter 144E.
111.11EFFECTIVE DATE.This section is effective for sales and purchases made after
111.12June 30, 2016.
111.13 Sec. 9. Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read:
111.14 Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except
111.15as provided in paragraph (e), on or before the 23rd day of each month, every person
111.16who is required to pay a gasoline tax shall file with the commissioner a report, in the
111.17form and manner prescribed by the commissioner, showing the number of gallons of
111.18petroleum products received by the reporter during the preceding calendar month, and
111.19other information the commissioner may require. A written report is deemed to have
111.20been filed as required in this subdivision if postmarked on or before the 23rd day of the
111.21month in which the tax is payable.
111.22(b) The number of gallons of gasoline must be reported in United States standard
111.23liquid gallons, 231 cubic inches, except that the commissioner may upon written
111.24application and for cause shown permit the distributor to report the number of gallons of
111.25gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application is
111.26granted, all gasoline covered in the application and allowed by the commissioner must
111.27continue to be reported by the distributor on the adjusted basis for a period of one year
111.28from the date of the granting of the application. The number of gallons of petroleum
111.29products other than gasoline must be reported as originally invoiced. Each report must
111.30show separately the number of gallons of aviation gasoline received by the reporter during
111.31each calendar month and the number of gallons of gasoline sold to a dealer of gasoline
111.32used as a substitute for aviation fuel during each calendar month.
112.1(c) Each report must also include the amount of gasoline tax on gasoline received by
112.2the reporter during the preceding month. In computing the tax a deduction of 2.5 percent
112.3of the quantity of gasoline received by a distributor shall be made for evaporation and loss.
112.4At the time of reporting, the reporter shall submit satisfactory evidence that one-third of
112.5the 2.5 percent deduction has been credited or paid to dealers on quantities sold to them.
112.6(d) Each report shall contain a confession of judgment for the amount of the tax
112.7shown due to the extent not timely paid.
112.8(e) Under certain circumstances and with the approval of the commissioner,
112.9taxpayers may be allowed to file reports annually.
112.10EFFECTIVE DATE.This section is effective for sales and purchases made after
112.11June 30, 2016.
112.12 Sec. 10. Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read:
112.13 Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any
112.14person who buys gasoline from a dealer of gasoline used as a substitute for aviation
112.15gasoline, or buys aviation gasoline or special fuel for aircraft use and who has paid the
112.16excise taxes due directly or indirectly through the amount of the tax being included in the
112.17price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly
112.18sells it to any person for use in motor vehicles shall, on or before the 23rd day of the month
112.19following that in which such gasoline or special fuel was so used or sold, report the fact of
112.20the use or sale to the commissioner in the form and manner prescribed by the commissioner.
112.21(b) Any person who buys gasoline other than aviation gasoline and who has paid the
112.22motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being
112.23included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to any
112.24person to be used for the purpose of producing or generating power for propelling aircraft,
112.25or who receives, stores, or withdraws from storage gasoline to be used for that purpose,
112.26shall, on or before the 23rd day of the month following that in which such gasoline was so
112.27sold, stored, or withdrawn from storage, report the fact of the sale, storage, or withdrawal
112.28from storage to the commissioner in the form and manner prescribed by the commissioner.
112.29EFFECTIVE DATE.This section is effective for sales and purchases made after
112.30June 30, 2016.
112.31 Sec. 11. Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read:
112.32 Subdivision 1. Aviation refund requirements. Any person claiming to be entitled
112.33to any refund or credit provided for in subdivision 3 shall receive the refund or credit
113.1upon filing with the commissioner a claim in such form and manner prescribed by the
113.2commissioner. The claim shall set forth, among other things, the total number of gallons
113.3of gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel
113.4for aircraft use upon which the claimant has directly or indirectly paid the excise tax
113.5provided for in this chapter, during the calendar year, which has been received, stored, or
113.6withdrawn from storage by the claimant in this state and not sold or otherwise disposed of
113.7to others. All claims for refunds under this subdivision shall be made on or before April
113.830 following the end of the calendar year for which the refund is claimed.
113.9EFFECTIVE DATE.This section is effective for sales and purchases made after
113.10June 30, 2016.
113.11 Sec. 12. Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read:
113.12 Subd. 2. Claim for refund; aviation tax. (a) Any person who buys gasoline used
113.13as a substitute for aviation gasoline, aviation gasoline, or special fuel for aircraft use and
113.14who has paid the excise taxes directly or indirectly through the amount of the tax being
113.15included in the price, or otherwise, who does not use it in motor vehicles or receive, sell,
113.16store, or withdraw it from storage for the purpose of producing or generating power for
113.17propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing
113.18with the commissioner a claim in the form and manner prescribed by the commissioner.
113.19The claim shall state the total amount of the gasoline used as a substitute for aviation
113.20gasoline, aviation gasoline, or special fuel for aircraft use purchased and used by the
113.21applicant, and shall state when and for what purpose it was used. On being satisfied that
113.22the claimant is entitled to payment, the commissioner shall approve the claim and transmit
113.23it to the commissioner of management and budget. The postmark on the envelope in
113.24which a written claim is mailed determines the date of filing.
113.25(b) If a claim contains an error in preparation in computation or preparation, the
113.26commissioner is authorized to adjust the claim in accordance with the evidence shown on
113.27the claim or other information available to the commissioner.
113.28(c) An applicant who files a claim that is false or fraudulent, is subject to the
113.29penalties provided in section
113.30EFFECTIVE DATE.This section is effective for sales and purchases made after
113.31June 30, 2016.
113.32 Sec. 13. Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read:
114.1 Subd. 3. Refund on graduated basis. Any person who has directly or indirectly
114.2paid the excise tax on gasoline used as a substitute for aviation gasoline, aviation gasoline,
114.3or special fuel for aircraft use provided for by this chapter and either paid the airflight
114.4property tax under section
114.5aerial license, under section 18B.33, shall, as to all such gasoline used as a substitute for
114.6aviation gasoline, aviation gasoline, and special fuel received, stored, or withdrawn from
114.7storage by the person in this state in any calendar year and not sold or otherwise disposed
114.8of to others, or intended for sale or other disposition to others, on which such tax has been
114.9so paid, be entitled to the following graduated reductions in such tax for that calendar
114.10year, to be obtained by means of the following refunds:
114.11(1) on each gallon of
114.12gasoline, or special fuel up to 50,000 gallons, all but five cents per gallon;
114.13(2) on each gallon of
114.14gasoline, or special fuel above 50,000 gallons and not more than 150,000 gallons, all
114.15but two cents per gallon;
114.16(3) on each gallon of
114.17gasoline, or special fuel above 150,000 gallons and not more than 200,000 gallons, all
114.18but one cent per gallon;
114.19(4) on each gallon of
114.20gasoline, or special fuel above 200,000, all but one-half cent per gallon.
114.21EFFECTIVE DATE.This section is effective for sales and purchases made after
114.22June 30, 2016.
114.23 Sec. 14. Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read:
114.24 Subdivision 1. Intent; gasoline use. All gasoline received in this state and all
114.25gasoline produced in or brought into this state except aviation gasoline, gasoline sold to a
114.26dealer of gasoline used as a substitute for aviation gasoline, and marine gasoline shall be
114.27determined to be intended for use in motor vehicles in this state.
114.28EFFECTIVE DATE.This section is effective for sales and purchases made after
114.29June 30, 2016.
114.30 Sec. 15. Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read:
114.31 Subd. 8. Airports. The revenues derived from the excise taxes on gasoline used as
114.32a substitute for aviation gasoline, aviation gasoline, and on special fuel received, sold,
114.33stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid into
115.1the state treasury and credited to the state airports fund. There is hereby appropriated such
115.2sums as are needed to carry out the provisions of this subdivision.
115.3EFFECTIVE DATE.This section is effective for sales and purchases made after
115.4June 30, 2016.
115.5 Sec. 16. Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read:
115.6 Subdivision 1. Retention. All distributors, dealers, special fuel dealers, bulk
115.7purchasers, dealers of gasoline used as a substitute for aviation gasoline, and all users of
115.8special fuel shall keep a true and accurate record of all purchases, transfers, sales, and use
115.9of petroleum products and special fuel, including copies of all sales tickets issued, in a form
115.10and manner approved by the commissioner, and shall retain all such records for 3-1/2 years.
115.11EFFECTIVE DATE.This section is effective for sales and purchases made after
115.12June 30, 2016.
115.13 Sec. 17. Minnesota Statutes 2014, section 297E.02, subdivision 1, is amended to read:
115.14 Subdivision 1. Imposition. (a) A tax is imposed on all lawful gambling other than
115.15(1) paper or electronic pull-tab deals or games; (2) tipboard deals or games; (3) electronic
115.16linked bingo; and (4) items listed in section
115.17the rate of 8.5 percent on the gross receipts as defined in section
115.18less prizes actually paid.
115.19(b) A tax is imposed on the conduct of paper pull-tabs, at the rate of nine percent of
115.20the gross receipts, less prizes actually paid, of the pull-tab deal. The tax imposed under
115.21this paragraph applies only to paper pull-tabs sold at a bingo hall as defined in section
115.22349.12, subdivision 4a.
115.23(c) The tax imposed by this subdivision is in lieu of the tax imposed by section
115.25subdivision 8
115.26(d) The tax imposed under this subdivision is payable by the organization or party
115.27conducting, directly or indirectly, the gambling.
115.28EFFECTIVE DATE.This section is effective for gross receipts received on or
115.29after July 1, 2016.
115.30 Sec. 18. Minnesota Statutes 2015 Supplement, section 297E.02, subdivision 6, is
115.31amended to read:
116.1 Subd. 6. Combined net receipts tax. (a) In addition to the taxes imposed under
116.2subdivision 1, a tax is imposed on the combined net receipts of the organization. As used
116.3in this section, "combined net receipts" is the sum of the organization's gross receipts
116.4from lawful gambling less gross receipts directly derived from the conduct of paper
116.5bingo, raffles, and paddlewheels, as defined in section
116.6the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, and
116.7paddlewheels, for the fiscal year. The combined net receipts of an organization are subject
116.8to a tax computed according to the following schedule:
116.19(b) On or before April 1, 2016, the commissioner shall estimate the total amount of
116.20revenue, including interest and penalties, that will be collected for fiscal year 2016 from
116.21taxes imposed under this chapter. If the amount estimated by the commissioner equals
116.22or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the
116.23rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a
116.24notice to that effect in the State Register and notify each taxpayer by June 1, 2016. If the
116.25rates under this section apply, the combined net receipts of an organization are subject to a
116.26tax computed according to the following schedule:
116.38(c) Gross receipts derived from sports-themed tipboards are exempt from taxation
116.39under this section. For purposes of this paragraph, a sports-themed tipboard means a
116.40sports-themed tipboard as defined in section
116.41winning numbers are determined by the numerical outcome of a professional sporting event.
117.1(d) Paper pull-tabs sold at a bingo hall as defined in section 349.12, subdivision 4a,
117.2are exempt from taxation under this subdivision.
117.3EFFECTIVE DATE.This section is effective July 1, 2016.
117.4 Sec. 19. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision
117.5to read:
117.6 Subd. 6a. Bulk nicotine. "Bulk nicotine" means any vapor product that contains a
117.7solution having a concentration of 50 milligrams of nicotine per milliliter or greater.
117.8EFFECTIVE DATE.This section is effective January 1, 2017.
117.9 Sec. 20. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision
117.10to read:
117.11 Subd. 6b. Consumable material. "Consumable material" means any vapor product
117.12that contains nicotine in a solution having a concentration of less than 50 milligrams
117.13of nicotine per milliliter.
117.14EFFECTIVE DATE.This section is effective January 1, 2017.
117.15 Sec. 21. Minnesota Statutes 2014, section 297F.01, subdivision 19, is amended to read:
117.16 Subd. 19. Tobacco products. (a) "Tobacco products" means any product
117.17containing, made, or derived from tobacco that is intended for human consumption,
117.18whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by
117.19any other means, or any component, part, or accessory of a tobacco product, including,
117.20but not limited to, cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut,
117.21ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist
117.22tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and
117.23sweepings of tobacco, vapor products, and other kinds and forms of tobacco; but does
117.24not include cigarettes as defined in this section. Tobacco products excludes any tobacco
117.25product that has been approved by the United States Food and Drug Administration for
117.26sale as a tobacco cessation product, as a tobacco dependence product, or for other medical
117.27purposes, and is being marketed and sold solely for such an approved purpose.
117.28(b) Except for the imposition of tax under section
117.29tobacco products includes a premium cigar, as defined in subdivision 13a.
117.30EFFECTIVE DATE.This section is effective January 1, 2017.
118.1 Sec. 22. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision
118.2to read:
118.3 Subd. 24. Vapor products. "Vapor products" means any noncombustible product
118.4that employs a heating element, power source, electronic circuit, or other electronic,
118.5chemical, or mechanical means, regardless of shape or size, that can be used to produce
118.6vapor from nicotine in a solution or other form. Vapor products includes any electronic
118.7cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device
118.8and any vapor cartridge or other container of bulk nicotine or consumable material in
118.9a solution or other form that is intended to be used with or in an electronic cigarette,
118.10electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.
118.11EFFECTIVE DATE.This section is effective January 1, 2017.
118.12 Sec. 23. Minnesota Statutes 2014, section 297F.05, subdivision 1, is amended to read:
118.13 Subdivision 1. Rates; cigarettes. A tax is imposed upon the sale of cigarettes in this
118.14state, upon having cigarettes in possession in this state with intent to sell, upon any person
118.15engaged in business as a distributor, and upon the use or storage by consumers, at the rate
118.16of
118.17EFFECTIVE DATE.This section is effective the day following final enactment.
118.18 Sec. 24. Minnesota Statutes 2014, section 297F.05, subdivision 3, is amended to read:
118.19 Subd. 3. Rates; tobacco products. (a) Except as provided in
118.20subdivisions 3a and 3b, a tax is imposed upon all tobacco products in this state and upon
118.21any person engaged in business as a distributor, at the rate of 95 percent of the wholesale
118.22sales price of the tobacco products. The tax is imposed at the time the distributor:
118.23(1) brings, or causes to be brought, into this state from outside the state tobacco
118.24products for sale;
118.25(2) makes, manufactures, or fabricates tobacco products in this state for sale in
118.26this state; or
118.27(3) ships or transports tobacco products to retailers in this state, to be sold by those
118.28retailers.
118.29(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a
118.30pack of 20 cigarettes weighing not more than three pounds per thousand, as established
118.31under subdivision 1, is imposed on each container of moist snuff.
118.32For purposes of this subdivision, a "container" means the smallest consumer-size can,
118.33package, or other container that is marketed or packaged by the manufacturer, distributor,
119.1or retailer for separate sale to a retail purchaser. When more than one container is
119.2packaged together, each container is subject to tax.
119.3EFFECTIVE DATE.This section is effective January 1, 2017.
119.4 Sec. 25. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision
119.5to read:
119.6 Subd. 3b. Rates; vapor products. (a) A tax is imposed upon all vapor products in
119.7this state and upon any person engaged in business as a tobacco product distributor. The
119.8tax imposed under this subdivision is imposed at the time the tobacco products distributor:
119.9(1) brings, or causes to be brought, into this state vapor products for sale;
119.10(2) makes, manufactures, or fabricates vapor products in this state, not otherwise
119.11taxed under this subdivision, for sale in this state; or
119.12(3) ships or transports vapor products to retailers in this state to be sold by those
119.13retailers.
119.14(b) For vapor products that contain bulk nicotine, the rate of tax is 300 percent of the
119.15wholesale sales price of the vapor product.
119.16(c) For vapor products that contain consumable material, the rate of tax is 45 percent
119.17of the wholesale sales price of the vapor product.
119.18EFFECTIVE DATE.This section is effective January 1, 2017.
119.19 Sec. 26. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision
119.20to read:
119.21 Subd. 4b. Use tax; vapor products. A tax is imposed upon the use or storage by
119.22consumers of all vapor products in this state, and upon such consumers, at the rate of 300
119.23percent of the wholesale sales price of a vapor product containing bulk nicotine, and 45
119.24percent of the wholesale sales price of a vapor product containing consumable material.
119.25EFFECTIVE DATE.This section is effective January 1, 2017.
119.26 Sec. 27. Minnesota Statutes 2014, section 297H.04, subdivision 2, is amended to read:
119.27 Subd. 2. Rate. (a) Commercial generators that generate nonmixed municipal
119.28solid waste shall pay a solid waste management tax of 60 cents per noncompacted
119.29cubic yard of periodic waste collection capacity purchased by the generator, based on
119.30the size of the container for the nonmixed municipal solid waste, the actual volume,
119.31or the weight-to-volume conversion schedule in paragraph (c). However, the tax must
119.32be calculated by the waste management service provider using the same method for
120.1calculating the waste management service fee so that both are calculated according to
120.2container capacity, actual volume, or weight.
120.3(b) Notwithstanding section
120.4nonmixed municipal solid waste shall pay a solid waste management tax in the same
120.5manner as provided in paragraph (a).
120.6(c) The weight-to-volume conversion schedule for:
120.7(1) construction debris as defined in section
120.8
120.9of revenue, after consultation with the commissioner of the Pollution Control Agency,
120.10shall determine and may publish by notice a conversion schedule for construction debris;
120.11(2) industrial waste as defined in section
120.1260 cents per cubic yard. The commissioner of revenue after consultation with the
120.13commissioner of the Pollution Control Agency, shall determine, and may publish by
120.14notice, a conversion schedule for various industrial wastes; and
120.15(3) infectious waste as defined in section
120.16waste as defined in section
120.1760 cents per 150 pounds.
120.18EFFECTIVE DATE.This section is effective for sales and purchases made after
120.19June 30, 2016.
120.20 Sec. 28. Minnesota Statutes 2014, section 349.12, is amended by adding a subdivision
120.21to read:
120.22 Subd. 4a. Bingo hall. (a) "Bingo hall" means the premises on which an organization
120.23licensed under this chapter regularly conducts bingo if:
120.24(1) more than 50 percent of the organization's gross receipts from lawful gambling
120.25in the prior calendar year were attributable to the conduct of bingo or the organization had
120.26no receipts from lawful gambling in that year; or
120.27(2) no other organization conducts lawful gambling on the premises.
120.28(b) For purposes of this subdivision, "bingo" does not include a linked bingo game
120.29as defined in this section.
120.30EFFECTIVE DATE.This section is effective July 1, 2016.
120.31 Sec. 29. REPEALER.
120.32(a) Minnesota Statutes 2014, section 297F.05, subdivision 1a, is repealed.
120.33(b) Minnesota Rules, part 8125.1300, subpart 3, is repealed.
121.1EFFECTIVE DATE.This section is effective the day following final enactment.
121.4 Section 1. Minnesota Statutes 2014, section 298.24, is amended by adding a
121.5subdivision to read:
121.6 Subd. 5. TEDF; deposits redirected. (a) For concentrates produced by a plant
121.7subject to a reimbursement agreement dated September 9, 2008, by and among Itasca
121.8County, Essar Global Limited, and Minnesota Steel Industries LLC, the provisions of
121.9sections 298.227 and 298.28, subdivision 9a, do not apply to the plant's production.
121.10(b) All amounts not deposited in the taconite economic development fund as a
121.11result of paragraph (a) must be deposited in the Douglas J. Johnson economic protection
121.12trust fund created under section 298.292.
121.13(c) The provisions of this subdivision expire upon certification by the commissioner
121.14of employment and economic development that all requirements of the reimbursement
121.15agreement, as specified in paragraph (a), are satisfied.
121.16EFFECTIVE DATE.This section is effective the day following final enactment.
121.17 Sec. 2. Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read:
121.18 Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed
121.19under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid
121.20account to be distributed as provided in section
121.21 (b) An amount must be allocated to towns or cities that is annually certified by
121.22the county auditor of a county containing a taconite tax relief area as defined in section
121.242, 1982, more than 75 percent of the assessed valuation of the township consists of iron
121.25ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation
121.26of the city consists of iron ore.
121.27 (c) The amount allocated under paragraph (b) will be the portion of a township's or
121.28city's certified levy equal to the proportion of (1) the difference between 50 percent of
121.29January 2, 1982, assessed value in the case of a township and 50 percent of the January 2,
121.301980, assessed value in the case of a city and its current assessed value to (2) the sum of
121.31its current assessed value plus the difference determined in (1), provided that the amount
121.32distributed shall not exceed $55 per capita in the case of a township or $75 per capita in
121.33the case of a city. For purposes of this limitation, population will be determined according
121.34to the 1980 decennial census conducted by the United States Bureau of the Census. If the
122.1current assessed value of the township exceeds 50 percent of the township's January 2,
122.21982, assessed value, or if the current assessed value of the city exceeds 50 percent of the
122.3city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this
122.4paragraph, "assessed value," when used in reference to years other than 1980 or 1982,
122.5means the appropriate net tax capacities multiplied by 10.2.
122.6 (d) In addition to other distributions under this subdivision,
122.7taxable ton for distributions in
122.8distribution to (1) towns that are entirely located within the taconite tax relief area defined
122.9in section
122.10Louis County and Itasca County: 56-17; 58-22; 59-16; 59-21; 60-18; and 60-19. For
122.11
122.12years, the
122.13as the increase in the implicit price deflator as provided in section
122.14The amount available under this paragraph
122.15eligible unorganized territories on a per capita basis, provided that no town or unorganized
122.16territory may receive more than $50,000 in any year under this paragraph. Any amount of
122.17the distribution that exceeds the $50,000 limitation for a town or unorganized territory
122.18under this paragraph must be redistributed on a per capita basis among the other eligible
122.19towns and eligible unorganized territories, to whose distributions do not exceed $50,000.
122.20The amount available to unorganized territories in St. Louis County and Itasca County
122.21may be held by the county and combined for public infrastructure projects for the specified
122.22unorganized territories.
122.23EFFECTIVE DATE.This section is effective for distributions beginning in 2017
122.24and thereafter.
122.25 Sec. 3. Minnesota Statutes 2014, section 298.28, subdivision 5, is amended to read:
122.26 Subd. 5. Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through
122.272023, and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated
122.28to counties to be distributed, based upon certification by the commissioner of revenue,
122.29under paragraphs (b) to (d).
122.30 (b) 10.525 cents per taxable ton shall be distributed to the county in which the
122.31taconite is mined or quarried or in which the concentrate is produced, less any amount
122.32which is to be distributed pursuant to paragraph (c). The apportionment formula prescribed
122.33in subdivision 2 is the basis for the distribution.
122.34 (c)
122.35paragraph (b) shall be paid to a county that received a distribution under this section
123.1in 2000 because there was located in the county an electric power plant owned by and
123.2providing the primary source of power for a taxpayer mining and concentrating taconite
123.3
123.4
123.5
123.6
123.7 (d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525
123.8cents per taxable ton for distributions beginning in 2024, shall be paid to the county from
123.9which the taconite was mined, quarried or concentrated to be deposited in the county road
123.10and bridge fund. If the mining, quarrying and concentrating, or separate steps in any of
123.11those processes are carried on in more than one county, the commissioner shall follow the
123.12apportionment formula prescribed in subdivision 2.
123.13EFFECTIVE DATE.This section is effective the day following final enactment.
123.14 Sec. 4. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:
123.15 Subd. 7a. Iron Range school consolidation and cooperatively operated school
123.16account. The following amounts must be allocated to the Iron Range Resources and
123.17Rehabilitation Board to be deposited in the Iron Range school consolidation and
123.18cooperatively operated school account that is hereby created:
123.19(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
123.20imposed under section
123.21taxable ton of the tax imposed under section
123.22(2) the amount as determined under section
123.23(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
123.24proceeds attributable to the increase in the implicit price deflator as provided in section
123.26Johnson economic protection trust fund;
123.27(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the
123.28increased tax proceeds attributable to the increase in the implicit price deflator as provided
123.29in section
123.30one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
123.31(iii) for distributions in 2017 and thereafter, an amount equal to two-thirds of the
123.32sum of the increased tax proceeds attributable to the increase in the implicit price deflator
123.33as provided in section
123.342017, with the remaining one-third to be distributed to the Douglas J. Johnson economic
123.35protection trust fund; and
124.1(4) any other amount as provided by law.
124.2Expenditures from this account shall be made only to provide disbursements to
124.3assist school districts with the payment of bonds that were issued for qualified school
124.4projects, or for any other school disbursement as approved by the Iron Range Resources
124.5and Rehabilitation Board. For purposes of this section, "qualified school projects" means
124.6school projects within the taconite assistance area as defined in section
124.7(1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner
124.8of education pursuant to section
124.9Beginning in fiscal year 2019, the disbursement to school districts for payments for
124.10bonds issued under section
124.11offset any reduction in debt service equalization aid that the school district qualifies for in
124.12that year, under section
124.13district qualified for in fiscal year 2018.
124.14No expenditure under this section shall be made unless approved by seven members
124.15of the Iron Range Resources and Rehabilitation Board.
124.16EFFECTIVE DATE.This section is effective for distributions beginning in 2017
124.17and thereafter.
124.20 Section 1. Minnesota Statutes 2014, section 469.1763, subdivision 1, is amended to read:
124.21 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
124.22have the meanings given.
124.23(b) "Activities" means acquisition of property, clearing of land, site preparation, soils
124.24correction, removal of hazardous waste or pollution, installation of utilities, construction
124.25of public or private improvements, and other similar activities, but only to the extent that
124.26tax increment revenues may be spent for such purposes under other law.
124.27(c) "Third party" means an entity other than (1) the person receiving the benefit
124.28of assistance financed with tax increments, or (2) the municipality or the development
124.29authority or other person substantially under the control of the municipality.
124.30(d) "Revenues derived from tax increments paid by properties in the district" means
124.31only tax increment as defined in section
124.32not include tax increment as defined in section
124.33
124.34EFFECTIVE DATE.This section is effective the day following final enactment.
125.1 Sec. 2. Minnesota Statutes 2014, section 469.1763, subdivision 2, is amended to read:
125.2 Subd. 2. Expenditures outside district. (a) For each tax increment financing
125.3district, an amount equal to at least 75 percent of the total revenue derived from tax
125.4increments paid by properties in the district must be expended on activities in the district
125.5or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
125.6in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
125.7For districts, other than redevelopment districts for which the request for certification
125.8was made after June 30, 1995, the in-district percentage for purposes of the preceding
125.9sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
125.10increments paid by properties in the district may be expended, through a development fund
125.11or otherwise, on activities outside of the district but within the defined geographic area of
125.12the project except to pay, or secure payment of, debt service on credit enhanced bonds.
125.13For districts, other than redevelopment districts for which the request for certification was
125.14made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
125.1520 percent. The
125.16the district that are expended on costs under section
125.17(b), may be deducted first before calculating the percentages that must be expended within
125.18and without the district.
125.19 (b) In the case of a housing district, a housing project, as defined in section
125.20subdivision 11
125.21 (c) All administrative expenses are for activities outside of the district, except that
125.22if the only expenses for activities outside of the district under this subdivision are for
125.23the purposes described in paragraph (d), administrative expenses will be considered as
125.24expenditures for activities in the district.
125.25 (d) The authority may elect, in the tax increment financing plan for the district,
125.26to increase by up to ten percentage points the permitted amount of expenditures for
125.27activities located outside the geographic area of the district under paragraph (a). As
125.28permitted by section
125.29expenditures under paragraph (a), need not be made within the geographic area of the
125.30project. Expenditures that meet the requirements of this paragraph are legally permitted
125.31expenditures of the district, notwithstanding section
125.32To qualify for the increase under this paragraph, the expenditures must:
125.33 (1) be used exclusively to assist housing that meets the requirement for a qualified
125.34low-income building, as that term is used in section 42 of the Internal Revenue Code; and
126.1 (2) not exceed the qualified basis of the housing, as defined under section 42(c) of
126.2the Internal Revenue Code, less the amount of any credit allowed under section 42 of
126.3the Internal Revenue Code; and
126.4 (3) be used to:
126.5 (i) acquire and prepare the site of the housing;
126.6 (ii) acquire, construct, or rehabilitate the housing; or
126.7 (iii) make public improvements directly related to the housing; or
126.8(4) be used to develop housing:
126.9(i) if the market value of the housing does not exceed the lesser of:
126.10(A) 150 percent of the average market value of single-family homes in that
126.11municipality; or
126.12(B) $200,000 for municipalities located in the metropolitan area, as defined in
126.13section
126.14(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
126.15demolition of existing structures, site preparation, and pollution abatement on one or
126.16more parcels, if the parcel contains a residence containing one to four family dwelling
126.17units that has been vacant for six or more months and is in foreclosure as defined in
126.18section
126.19principal residence, and only after the redemption period has expired.
126.20 (e) For a district created within a biotechnology and health sciences industry zone
126.21as defined in Minnesota Statutes 2012, section
126.22district located within such a zone, tax increment derived from such a district may be
126.23expended outside of the district but within the zone only for expenditures required for the
126.24construction of public infrastructure necessary to support the activities of the zone, land
126.25acquisition, and other redevelopment costs as defined in section
126.26These expenditures are considered as expenditures for activities within the district. The
126.27authority provided by this paragraph expires for expenditures made after the later of (1)
126.28December 31, 2015, or (2) the end of the five-year period beginning on the date the district
126.29was certified, provided that date was before January 1, 2016.
126.30(f) The authority under paragraph (d), clause (4), expires on December 31, 2016.
126.31Increments may continue to be expended under this authority after that date, if they are
126.32used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
126.33(a), if December 31, 2016, is considered to be the last date of the five-year period after
126.34certification under that provision.
126.35EFFECTIVE DATE.This section is effective the day following final enactment.
127.1 Sec. 3. Minnesota Statutes 2014, section 469.1763, subdivision 3, is amended to read:
127.2 Subd. 3. Five-year rule. (a) Revenues derived from tax increments paid by
127.3properties in the district are considered to have been expended on an activity within the
127.4district under subdivision 2 only if one of the following occurs:
127.5(1) before or within five years after certification of the district, the revenues are
127.6actually paid to a third party with respect to the activity;
127.7(2) bonds, the proceeds of which must be used to finance the activity, are issued and
127.8sold to a third party before or within five years after certification, the revenues are spent
127.9to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
127.10reasonably expected to be spent before the end of the later of (i) the five-year period, or
127.11(ii) a reasonable temporary period within the meaning of the use of that term under section
127.12148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
127.13or replacement fund;
127.14(3) binding contracts with a third party are entered into for performance of the
127.15activity before or within five years after certification of the district and the revenues are
127.16spent under the contractual obligation;
127.17(4) costs with respect to the activity are paid before or within five years after
127.18certification of the district and the revenues are spent to reimburse a party for payment
127.19of the costs, including interest on unreimbursed costs; or
127.20(5) expenditures are made for housing purposes as permitted by subdivision 2,
127.21paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
127.22by subdivision 2, paragraph (e).
127.23(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
127.24the original refunded bonds meet the requirements of paragraph (a), clause (2).
127.25(c) For a redevelopment district or a renewal and renovation district certified after
127.26June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a)
127.27are extended to ten years after certification of the district. For a redevelopment district
127.28certified after April 20, 2009, and before June 30, 2012, the five-year periods described in
127.29paragraph (a) are extended to eight years after certification of the district. This extension is
127.30provided primarily to accommodate delays in development activities due to unanticipated
127.31economic circumstances.
127.32EFFECTIVE DATE.This section is effective the day following final enactment.
127.33 Sec. 4. Minnesota Statutes 2014, section 469.178, subdivision 7, is amended to read:
128.1 Subd. 7. Interfund loans. (a) The authority or municipality may advance or loan
128.2money to finance expenditures under section
128.3or any other fund under which it has legal authority to do so.
128.4 (b) Not later than 60 days after money is transferred, advanced, or spent, whichever
128.5is earliest, the loan or advance must be authorized
128.6of the authority, whichever has jurisdiction over the fund from which the advance or loan
128.7is authorized
128.8 (c) The resolution may generally grant to the municipality or the authority the power
128.9to make interfund loans under one or more tax increment financing plans or for one or
128.10more districts. The resolution may be adopted before or after the adoption of the tax
128.11increment financing plan or the creation of the tax increment financing district from which
128.12the advance or loan is to be repaid.
128.13 (d) The terms and conditions for repayment of the loan must be provided in
128.14writing
128.15a minimum, the principal amount, the interest rate, and maximum term. Written terms
128.16may be modified or amended in writing by the municipality or the authority before the
128.17latest decertification of any tax increment financing district from which the interfund loan
128.18is to be repaid. The maximum rate of interest permitted to be charged is limited to the
128.19greater of the rates specified under section
128.20advance is authorized, unless the written agreement states that the maximum interest rate
128.21will fluctuate as the interest rates specified under section
128.22to time adjusted. Loans or advances may be structured as draw-down or line-of-credit
128.23obligations of the lending fund.
128.24 (e) The authority shall report in the annual report submitted pursuant to section
128.25469.175, subdivision 6:
128.26 (1) the amount of any interfund loan or advance made in a calendar year; and
128.27 (2) any amendment of an interfund loan or advance made in a calendar year.
128.28EFFECTIVE DATE.This section is effective the day following final enactment
128.29and applies to all districts, regardless of when the request for certification was made.
128.30 Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:
128.31 Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
128.32financing plan for a district, the rules under this section apply to a redevelopment district,
128.33renewal and renovation district, economic development district, soil condition district,
128.34or a soil deficiency district established by the city or a development authority of the city
128.35in the project area.
129.1 (b) Prior to or upon the adoption of the first tax increment plan subject to the special
129.2rules under this subdivision, the city must find by resolution that parcels consisting of at
129.3least 80 percent of the acreage of the project area (excluding street and railroad right of
129.4way) are characterized by one or more of the following conditions:
129.5 (1) peat or other soils with geotechnical deficiencies that impair development of
129.6residential or commercial buildings or infrastructure;
129.7 (2) soils or terrain that requires substantial filling in order to permit the development
129.8of commercial or residential buildings or infrastructure;
129.9 (3) landfills, dumps, or similar deposits of municipal or private waste;
129.10 (4) quarries or similar resource extraction sites;
129.11 (5) floodway; and
129.12 (6) substandard buildings within the meaning of Minnesota Statutes, section
129.14 (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to
129.15be characterized by the relevant condition if at least 70 percent of the area of the parcel
129.16contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is
129.17deemed to be characterized by substandard buildings if the buildings occupy at least 30
129.18percent of the area of the parcel.
129.19 (d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6,
129.20is extended to nine years for any district. The five-year rule under Minnesota Statutes,
129.21section
129.23 (e) Notwithstanding anything to the contrary in section
129.24paragraph (a), not more than 80 percent of the total revenue derived from tax increments
129.25paid by properties in any district (measured over the life of the district) may be expended
129.26on activities outside the district but within the project area.
129.27 (f) For a soil deficiency district:
129.28 (1) increments may be collected through 20 years after the receipt by the authority of
129.29the first increment from the district; and
129.30 (2) except as otherwise provided in this subdivision, increments may be used only to:
129.31 (i) acquire parcels on which the improvements described in item (ii) will occur;
129.32 (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
129.33additional cost of installing public improvements directly caused by the deficiencies; and
129.34 (iii) pay for the administrative expenses of the authority allocable to the district.
130.1 (g) Increments spent for any infrastructure costs, whether inside a district or outside
130.2a district but within the project area, are deemed to satisfy the requirements of paragraph
130.3(f) and Minnesota Statutes, section
130.4 (h) Increments from any district may not be used to pay the costs of landfill closure or
130.5public infrastructure located on the following parcels within the plat known as Burnsville
130.6Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.
130.7 (i) The authority to approve tax increment financing plans to establish tax increment
130.8financing districts under this section expires on December 31,
130.9EFFECTIVE DATE.This section is effective upon approval by the governing body
130.10of the city of Burnsville and compliance with the requirements of Minnesota Statutes,
130.11section 645.021.
130.12 Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter
130.13382, section 84, is amended to read:
130.14 Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT
130.15FINANCING DISTRICT; SPECIAL RULES.
130.16(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and
130.17the governing body of the city of Duluth approves the plan for the tax increment financing
130.18district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020;
130.19010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090;
130.20010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140;
130.21010-2730-00160; 010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320;
130.22010-2746-01250; 010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440;
130.23010-2746-1380; 010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520;
130.24010-2746-01530; 010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570;
130.25010-2746-01580; 010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570;
130.26010-3300-04580; 010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year
130.27rule under Minnesota Statutes, section
130.28undertaken within a five-year period from the date of certification of the tax increment
130.29financing district, must be considered to be met if the activities are undertaken within five
130.30years after the date all qualifying parcels are delisted from the Federal Superfund list.
130.31(b) The requirements of Minnesota Statutes, section
130.32beginning in the sixth year following certification of the district requirement, will begin
130.33in the sixth year following the date all qualifying parcels are delisted from the Federal
130.34Superfund list.
131.1(c) The action required under Minnesota Statutes, section
131.2are satisfied if the action is commenced within four years after the date all qualifying
131.3parcels are delisted from the Federal Superfund list and evidence of the action required is
131.4submitted to the county auditor by February 1 of the fifth year following the year in which
131.5all qualifying parcels are delisted from the Federal Superfund list.
131.6(d) For purposes of this section, "qualifying parcels" means United States Steel
131.7parcels listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part
131.8of the USS Site (USEPA OU 02) that are included in the tax increment financing district.
131.9(e) In addition to the reporting requirements of Minnesota Statutes, section
131.10subdivision 5
131.11listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status report
131.12must show the parcel numbers, the listed or delisted status, and if delisted, the delisting date.
131.13(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other
131.14law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan
131.15program before approval of the tax increment financing plan for or the establishment of
131.16the district authorized by this section. The authority may make loans under this program
131.17and the proceeds of the loans may be used for any permitted use of increments under
131.18this law or Minnesota Statutes, section 469.176, for the district, and may be repaid with
131.19increments from the district established under this section. This subdivision applies to any
131.20action authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.
131.21EFFECTIVE DATE.This section is effective the day after the governing body of
131.22the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
131.23645.021, subdivision 3.
131.24 Sec. 7. Laws 2014, chapter 308, article 6, section 9, is amended to read:
131.25 Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING
131.26DISTRICT.
131.27 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
131.28have the meanings given them.
131.29(b) "City" means the city of Maple Grove.
131.30(c) "Project area" means all or a portion of the area in the city commencing at a point
131.31130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of
131.32Section 23, Township 119, Range 22, Hennepin County, said point being on the easterly
131.33right-of-way line of Hemlock Lane; thence northerly along said easterly right-of-way line
131.34of Hemlock Lane to a point on the west line of the east one-half of the Southeast Quarter of
131.35section 23, thence south along said west line a distance of 1,200 feet; thence easterly to the
132.1east line of Section 23, 1,030 feet North from the southeast corner thereof; thence South
132.274 degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees
132.3West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line
132.4of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of
132.5the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795
132.6feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of
132.7Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the
132.8Northwest Quarter of Section 24; thence West along said south line to the east right-of-way
132.9line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to
132.10the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence
132.11East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan
132.12Industrial Park 5th Addition; thence South along the east line of said Outlot A and its
132.13southerly extension to the south right-of-way line of County State-Aid Highway (CSAH)
132.14109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the
132.15Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east
132.16line to the north line of the South Half of the Northeast Quarter of Section 24; thence East
132.17along said north line to the westerly right-of-way line of Jefferson Highway North; thence
132.18southerly along the westerly right-of-way line of Jefferson Highway to the centerline of
132.19CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane
132.20North to the westerly extension of the north line of Outlot A, Park North Fourth Addition;
132.21thence easterly along the north line of Outlot A, Park North Fourth Addition to the
132.22northeast corner of said Outlot A; thence southerly along the east line of said Outlot A
132.23to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1,
132.24Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway
132.25169; thence southerly, southwesterly, westerly, and northwesterly along the westerly
132.26right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate
132.27694 to its intersection with the southerly extension of the easterly right-of-way line of
132.28Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
132.29Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
132.30westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
132.31and there terminating, provided that the project area includes the rights-of-way for all
132.32present and future highway interchanges abutting the area described in this paragraph, and
132.33may include any additional property necessary to cause the property included in the tax
132.34increment financing district to consist of complete parcels.
133.1(d) "Soil deficiency district" means a type of tax increment financing district
133.2consisting of a portion of the project area in which the city finds by resolution that the
133.3following conditions exist:
133.4(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
133.5the district require substantial filling, grading, or other physical preparation for use; and
133.6(2) the estimated cost of the physical preparation under clause (1), but excluding
133.7costs directly related to roads as defined in Minnesota Statutes, section
133.8local improvements as described in Minnesota Statutes, sections
133.9clauses (1) to (7), (11), and (12), and
133.10before completion of the preparation.
133.11 Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
133.12financing plan for a district, the rules under this section apply to a redevelopment
133.13district, renewal and renovation district, soil condition district, or soil deficiency district
133.14established by the city or a development authority of the city in the project area.
133.15(b) Prior to or upon the adoption of the first tax increment plan subject to the special
133.16rules under this subdivision, the city must find by resolution that parcels consisting
133.17of at least 80 percent of the acreage of the project area, excluding street and railroad
133.18rights-of-way, are characterized by one or more of the following conditions:
133.19(1) peat or other soils with geotechnical deficiencies that impair development of
133.20commercial buildings or infrastructure;
133.21(2) soils or terrain that require substantial filling in order to permit the development
133.22of commercial buildings or infrastructure;
133.23(3) landfills, dumps, or similar deposits of municipal or private waste;
133.24(4) quarries or similar resource extraction sites;
133.25(5) floodway; and
133.26(6) substandard buildings, within the meaning of Minnesota Statutes, section
133.28(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by
133.29the relevant condition if at least 70 percent of the area of the parcel contains the relevant
133.30condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
133.31substandard buildings if substandard buildings occupy at least 30 percent of the area
133.32of the parcel.
133.33(d) The five-year rule under Minnesota Statutes, section
133.34is extended to eight years for any district, and Minnesota Statutes, section
133.35subdivision 4
134.1(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section
134.3derived from tax increments paid by properties in any district, measured over the life of
134.4the district, may be expended on activities outside the district but within the project area.
134.5(f) For a soil deficiency district:
134.6(1) increments may be collected through 20 years after the receipt by the authority of
134.7the first increment from the district;
134.8(2) increments may be used only to:
134.9(i) acquire parcels on which the improvements described in item (ii) will occur;
134.10(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
134.11additional cost of installing public improvements directly caused by the deficiencies; and
134.12(iii) pay for the administrative expenses of the authority allocable to the district; and
134.13(3) any parcel acquired with increments from the district must be sold at no less
134.14than their fair market value.
134.15(g) Increments spent for any infrastructure costs, whether inside a district or outside
134.16a district but within the project area, are deemed to satisfy the requirements of Minnesota
134.17Statutes, section
134.18(h) The authority to approve tax increment financing plans to establish tax increment
134.19financing districts under this section expires June 30, 2020.
134.20(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
134.21increments from a soil deficiency district to acquire parcels and for other infrastructure
134.22costs either inside or outside of the district, but within the project area, if the acquisition or
134.23infrastructure is for a qualified development. For purposes of this paragraph, a development
134.24is a qualified development only if all of the following requirements are satisfied:
134.25(1) the city finds, by resolution, that the land acquisition and infrastructure are
134.26undertaken primarily to serve the development;
134.27(2) the city has a binding, written commitment and adequate financial assurances
134.28from the developer that the development will be constructed; and
134.29(3) the development does not consist of retail trade or housing improvements.
134.30EFFECTIVE DATE.This section is effective upon approval by the governing
134.31body of the city of Maple Grove and its compliance with the requirements of Minnesota
134.32Statutes, section 645.021.
134.33 Sec. 8. CITY OF ANOKA; TIF DISTRICT.
134.34For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
134.35the city of Anoka's Greens of Anoka redevelopment tax increment financing district is
135.1deemed to be certified on June 29, 2012, rather than its actual certification date of July 2,
135.22012, and the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4,
135.3apply as if the district were certified on that date.
135.4EFFECTIVE DATE.This section is effective upon approval by the governing body
135.5of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
135.6645.021, subdivisions 2 and 3.
135.7 Sec. 9. CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
135.8Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision
135.93, the chief clerical officer of the city of Edina may file the city's certificate of its approval
135.10of Laws 2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the certificate
135.11is so filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3,
135.12are otherwise complied with, the special law is deemed approved, and all actions taken
135.13by the city prior to the effective date of this section in reliance on Laws 2014, chapter
135.14308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article
135.156, section 8, and this act.
135.16EFFECTIVE DATE.This section is effective June 30, 2016, without local approval
135.17as an amendment to the provisions of Laws 2014, chapter 308, article 6, section 8.
135.18 Sec. 10. CITY OF COON RAPIDS; TAX INCREMENT FINANCING.
135.19Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision
135.201b, or any other law to the contrary, the city of Coon Rapids may collect tax increment
135.21from District 6-1 Port Riverwalk through December 31, 2038.
135.22EFFECTIVE DATE.This section is effective upon compliance by the governing
135.23bodies of the city of Coon Rapids, Anoka County, and Independent School District No.
135.2411 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and
135.25645.021, subdivision 3.
135.26 Sec. 11. CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING.
135.27The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that
135.28activities must be undertaken within a five-year period from the date of certification of
135.29a tax increment financing district, is considered to be met for Tax Increment Financing
135.30District No. 1-12 (Gateway North), administered by the Cottage Grove Economic
135.31Development Authority, if the activities are undertaken prior to January 1, 2017.
136.1EFFECTIVE DATE.This section is effective upon compliance by the chief clerical
136.2officer of the governing body of the city of Cottage Grove with the requirements of
136.3Minnesota Statutes, section 645.021, subdivisions 2 and 3.
136.4 Sec. 12. CITY OF NORTHFIELD; TAX INCREMENT FINANCING.
136.5The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that
136.6activities must be undertaken within a five-year period from the date of certification of a
136.7tax increment financing district, is considered to be met for the Riverfront Tax Increment
136.8Financing District in the city of Northfield, if the activities are undertaken prior to July
136.912, 2017.
136.10EFFECTIVE DATE.This section is effective the day after the governing body of
136.11the city of Northfield and its chief clerical officer comply with Minnesota Statutes, section
136.12645.021, subdivisions 2 and 3.
136.13 Sec. 13. CITY OF RICHFIELD; EXTENSION OF DISTRICT.
136.14Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other
136.15law to the contrary, the city of Richfield and the Housing and Redevelopment Authority in
136.16and for the city of Richfield may elect to extend the duration limit of the redevelopment
136.17tax increment financing district known as the Cedar Avenue Tax Increment Financing
136.18District established by Laws 2005, chapter 152, article 2, section 25, by ten years.
136.19EFFECTIVE DATE.This section is effective upon compliance by the city
136.20of Richfield, Hennepin County, and Independent School District No. 280 with the
136.21requirements of Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021,
136.22subdivisions 2 and 3.
136.23 Sec. 14. CITY OF ST. PAUL; TIF AUTHORITY.
136.24(a) For purposes of computing the duration limits under Minnesota Statutes, section
136.25469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
136.26may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
136.27District. This authority is limited to the first four years of increment or increments derived
136.28from taxes payable in 2023, whichever occurs first.
136.29(b) If the city elects to waive receipt of increment under paragraph (a), for purposes
136.30of applying any limits based on when the district was certified under Minnesota Statutes,
136.31section 469.176, subdivision 6, or 469.1763, the date of certification for the district is
137.1deemed to be January 2 of the property tax assessment year for which increment is first
137.2received under the waiver.
137.3EFFECTIVE DATE.This section is effective July 1, 2016, without local approval
137.4under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).
137.7 Section 1. Minnesota Statutes 2014, section 366.095, subdivision 1, is amended to read:
137.8 Subdivision 1. Certificates of indebtedness. The town board may issue certificates
137.9of indebtedness within the debt limits for a town purpose otherwise authorized by law.
137.10The certificates shall be payable in not more than ten years and be issued on the terms and
137.11in the manner as the board may determine, provided that notes issued for projects that
137.12eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2),
137.13shall be payable in not more than 20 years. If the amount of the certificates to be issued
137.14exceeds 0.25 percent of the estimated market value of the town, they shall not be issued
137.15for at least ten days after publication in a newspaper of general circulation in the town of
137.16the board's resolution determining to issue them. If within that time, a petition asking for
137.17an election on the proposition signed by voters equal to ten percent of the number of voters
137.18at the last regular town election is filed with the clerk, the certificates shall not be issued
137.19until their issuance has been approved by a majority of the votes cast on the question at
137.20a regular or special election. A tax levy shall be made to pay the principal and interest
137.21on the certificates as in the case of bonds.
137.22 Sec. 2. Minnesota Statutes 2014, section 383B.117, subdivision 2, is amended to read:
137.23 Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and
137.24without public referendum, issue capital notes within existing debt limits for the purpose
137.25of purchasing ambulance and other medical equipment, road construction or maintenance
137.26equipment, public safety equipment and other capital equipment having an expected
137.27useful life at least equal to the term of the notes issued. The notes shall be payable
137.28in not more than ten years and shall be issued on terms and in a manner as the board
137.29determines, provided that notes issued for projects that eliminate R-22, as such projects
137.30are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not more
137.31than 20 years. The total principal amount of the notes issued for any fiscal year shall not
137.32exceed one percent of the total annual budget for that year and shall be issued solely for
137.33the purchases authorized in this subdivision. A tax levy shall be made for the payment
137.34of the principal and interest on such notes as in the case of bonds. For purposes of this
138.1subdivision, "equipment" includes computer hardware and software, whether bundled with
138.2machinery or equipment or unbundled. For purposes of this subdivision, the term "medical
138.3equipment" includes computer hardware and software and other intellectual property for
138.4use in medical diagnosis, medical procedures, research, record keeping, billing, and other
138.5hospital applications, together with application development services and training related
138.6to the use of the computer hardware and software and other intellectual property, all
138.7without regard to their useful life. For purposes of determining the amount of capital notes
138.8which the county may issue in any year, the budget of the county and Hennepin Healthcare
138.9System, Inc. shall be combined and the notes issuable under this subdivision shall be in
138.10addition to obligations issuable under section
138.11 Sec. 3. Minnesota Statutes 2014, section 410.32, is amended to read:
138.12410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
138.13 (a) Notwithstanding any contrary provision of other law or charter, a home rule
138.14charter city may, by resolution and without public referendum, issue capital notes subject
138.15to the city debt limit to purchase capital equipment.
138.16 (b) For purposes of this section, "capital equipment" means:
138.17 (1) public safety equipment, ambulance and other medical equipment, road
138.18construction and maintenance equipment, and other capital equipment; and
138.19 (2) computer hardware and software, whether bundled with machinery or equipment
138.20or unbundled, together with application development services and training related to the
138.21use of the computer hardware and software.
138.22 (c) The equipment or software must have an expected useful life at least as long
138.23as the term of the notes.
138.24 (d) The notes shall be payable in not more than ten years and be issued on terms and
138.25in the manner the city determines, provided that notes issued for projects that eliminate
138.26R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be
138.27payable in not more than 20 years. The total principal amount of the capital notes issued
138.28in a fiscal year shall not exceed 0.03 percent of the estimated market value of taxable
138.29property in the city for that year.
138.30 (e) A tax levy shall be made for the payment of the principal and interest on the
138.31notes, in accordance with section
138.32 (f) Notes issued under this section shall require an affirmative vote of two-thirds of
138.33the governing body of the city.
139.1 (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
139.2city may also issue capital notes subject to its debt limit in the manner and subject to the
139.3limitations applicable to statutory cities pursuant to section
139.4 Sec. 4. Minnesota Statutes 2014, section 412.301, is amended to read:
139.5412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
139.6 (a) The council may issue certificates of indebtedness or capital notes subject to the
139.7city debt limits to purchase capital equipment.
139.8 (b) For purposes of this section, "capital equipment" means:
139.9 (1) public safety equipment, ambulance and other medical equipment, road
139.10construction and maintenance equipment, and other capital equipment; and
139.11 (2) computer hardware and software, whether bundled with machinery or equipment
139.12or unbundled, together with application development services and training related to the
139.13use of the computer hardware or software.
139.14 (c) The equipment or software must have an expected useful life at least as long as
139.15the terms of the certificates or notes.
139.16 (d) Such certificates or notes shall be payable in not more than ten years and shall
139.17be issued on such terms and in such manner as the council may determine, provided,
139.18however, that notes issued for projects that eliminate R-22, as such projects are defined in
139.19section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years.
139.20 (e) If the amount of the certificates or notes to be issued to finance any such purchase
139.21exceeds 0.25 percent of the estimated market value of taxable property in the city, they
139.22shall not be issued for at least ten days after publication in the official newspaper of
139.23a council resolution determining to issue them; and if before the end of that time, a
139.24petition asking for an election on the proposition signed by voters equal to ten percent
139.25of the number of voters at the last regular municipal election is filed with the clerk, such
139.26certificates or notes shall not be issued until the proposition of their issuance has been
139.27approved by a majority of the votes cast on the question at a regular or special election.
139.28 (f) A tax levy shall be made for the payment of the principal and interest on such
139.29certificates or notes, in accordance with section
139.30 Sec. 5. Minnesota Statutes 2014, section 469.034, subdivision 2, is amended to read:
139.31 Subd. 2. General obligation revenue bonds. (a) An authority may pledge the
139.32general obligation of the general jurisdiction governmental unit as additional security for
139.33bonds payable from income or revenues of the project or the authority. The authority
139.34must find that the pledged revenues will equal or exceed 110 percent of the principal and
140.1interest due on the bonds for each year. The proceeds of the bonds must be used for a
140.2qualified housing development project or projects. The obligations must be issued and
140.3sold in the manner and following the procedures provided by chapter 475, except the
140.4obligations are not subject to approval by the electors, and the maturities may extend to
140.5not more than 35 years for obligations sold to finance housing for the elderly and 40 years
140.6for other obligations issued under this subdivision. The authority is the municipality for
140.7purposes of chapter 475.
140.8 (b) The principal amount of the issue must be approved by the governing body of
140.9the general jurisdiction governmental unit whose general obligation is pledged. Public
140.10hearings must be held on issuance of the obligations by both the authority and the general
140.11jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
140.12than 120 days, before the sale of the obligations.
140.13 (c) The maximum amount of general obligation bonds that may be issued and
140.14outstanding under this section equals the greater of (1) one-half of one percent of the
140.15estimated market value of the general jurisdiction governmental unit whose general
140.16obligation is pledged, or (2)
140.17general obligation bonds, the outstanding general obligation bonds of all cities in the
140.18county or counties issued under this subdivision must be added in calculating the limit
140.19under clause (1).
140.20 (d) "General jurisdiction governmental unit" means the city in which the housing
140.21development project is located. In the case of a county or multicounty authority, the
140.22county or counties may act as the general jurisdiction governmental unit. In the case of
140.23a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
140.24taxable property in each of the counties.
140.25 (e) "Qualified housing development project" means a housing development project
140.26providing housing either for the elderly or for individuals and families with incomes not
140.27greater than 80 percent of the median family income as estimated by the United States
140.28Department of Housing and Urban Development for the standard metropolitan statistical
140.29area or the nonmetropolitan county in which the project is located. The project must be
140.30owned for the term of the bonds either by the authority or by a limited partnership or other
140.31entity in which the authority or another entity under the sole control of the authority is
140.32the sole general partner and the partnership or other entity must receive (1) an allocation
140.33from the Department of Management and Budget or an entitlement issuer of tax-exempt
140.34bonding authority for the project and a preliminary determination by the Minnesota
140.35Housing Finance Agency or the applicable suballocator of tax credits that the project
140.36will qualify for four percent low-income housing tax credits or (2) a reservation of nine
141.1percent low-income housing tax credits from the Minnesota Housing Finance Agency or a
141.2suballocator of tax credits for the project. A qualified housing development project may
141.3admit nonelderly individuals and families with higher incomes if:
141.4 (1) three years have passed since initial occupancy;
141.5 (2) the authority finds the project is experiencing unanticipated vacancies resulting in
141.6insufficient revenues, because of changes in population or other unforeseen circumstances
141.7that occurred after the initial finding of adequate revenues; and
141.8 (3) the authority finds a tax levy or payment from general assets of the general
141.9jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
141.10income individuals or families are not admitted.
141.11 (f) The authority may issue bonds to refund bonds issued under this subdivision in
141.12accordance with section
141.13by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
141.14issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
141.15after July 1, 1992.
141.16 Sec. 6. Minnesota Statutes 2014, section 469.101, subdivision 1, is amended to read:
141.17 Subdivision 1. Establishment. An economic development authority may create
141.18and define the boundaries of economic development districts at any place or places within
141.19the city, except that the district boundaries must be contiguous, and may use the powers
141.20granted in sections
141.21hold a public hearing on the matter. At least ten days before the hearing, the authority
141.22shall publish notice of the hearing in a
141.23Also, the authority shall find that an economic development district is proper and desirable
141.24to establish and develop within the city.
141.25 Sec. 7. Minnesota Statutes 2014, section 473.39, is amended by adding a subdivision
141.26to read:
141.27 Subd. 1u. Obligations. (a) In addition to other authority in this section, the council
141.28may issue certificates of indebtedness, bonds, or other obligations under this section in an
141.29amount not exceeding $82,100,000 for capital expenditures as prescribed in the council's
141.30transit capital improvement program and for related costs, including the costs of issuance
141.31and sale of the obligations. Of this authorization, after July 1, 2016, the council may
141.32issue certificates of indebtedness, bonds, or other obligations in an amount not exceeding
141.33$40,100,000, and after July 1, 2017, the council may issue certificates of indebtedness,
141.34bonds, or other obligations in an additional amount not exceeding $42,000,000.
142.1(b) This section applies in the counties of Anoka, Carver, Dakota, Hennepin,
142.2Ramsey, Scott, and Washington.
142.3EFFECTIVE DATE.This section is effective the day following final enactment.
142.4 Sec. 8. Minnesota Statutes 2014, section 475.58, subdivision 3b, is amended to read:
142.5 Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may,
142.6without regard to the election requirement under subdivision 1, issue and sell obligations
142.7for street reconstruction or bituminous overlays, if the following conditions are met:
142.8 (1) the streets are reconstructed or overlaid under a street reconstruction or overlay
142.9plan that describes the street reconstruction or overlay to be financed, the estimated costs,
142.10and any planned reconstruction or overlay of other streets in the municipality over the next
142.11five years, and the plan and issuance of the obligations has been approved by a vote of
142.12
142.13public hearing for which notice has been published in the official newspaper at least ten
142.14days but not more than 28 days prior to the hearing; and
142.15 (2) if a petition requesting a vote on the issuance is signed by voters equal to
142.16five percent of the votes cast in the last municipal general election and is filed with the
142.17municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
142.18only after obtaining the approval of a majority of the voters voting on the question of the
142.19issuance of the obligations. If the municipality elects not to submit the question to the
142.20voters, the municipality shall not propose the issuance of bonds under this section for the
142.21same purpose and in the same amount for a period of 365 days from the date of receipt
142.22of the petition. If the question of issuing the bonds is submitted and not approved by the
142.23voters, the provisions of section
142.24 (b) Obligations issued under this subdivision are subject to the debt limit of the
142.25municipality and are not excluded from net debt under section
142.26 (c) For purposes of this subdivision, street reconstruction and bituminous overlays
142.27includes utility replacement and relocation and other activities incidental to the street
142.28reconstruction, turn lanes and other improvements having a substantial public safety
142.29function, realignments, other modifications to intersect with state and county roads, and
142.30the local share of state and county road projects. For purposes of this subdivision, "street
142.31reconstruction" includes expenditures for street reconstruction that have been incurred
142.32by a municipality before approval of a street reconstruction plan, if such expenditures
142.33are included in a street reconstruction plan approved on or before the date of the public
142.34hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
143.1 (d) Except in the case of turn lanes, safety improvements, realignments, intersection
143.2modifications, and the local share of state and county road projects, street reconstruction
143.3and bituminous overlays does not include the portion of project cost allocable to widening
143.4a street or adding curbs and gutters where none previously existed.
143.5 Sec. 9. Minnesota Statutes 2014, section 475.60, subdivision 2, is amended to read:
143.6 Subd. 2. Requirements waived. The requirements as to public sale shall not
143.7apply to:
143.8(1) obligations issued under the provisions of a home rule charter or of a law
143.9specifically authorizing a different method of sale, or authorizing them to be issued in such
143.10manner or on such terms and conditions as the governing body may determine;
143.11(2) obligations sold by an issuer in an amount not exceeding the total sum of
143.12$1,200,000 in any 12-month period;
143.13(3) obligations issued by a governing body other than a school board in anticipation
143.14of the collection of taxes or other revenues appropriated for expenditure in a single year, if
143.15sold in accordance with the most favorable of two or more proposals solicited privately;
143.16(4) obligations sold to any board, department, or agency of the United States of
143.17America or of the state of Minnesota, in accordance with rules or regulations promulgated
143.18by such board, department, or agency;
143.19(5) obligations issued to fund pension and retirement fund liabilities under section
143.21subdivision 5a
143.2213
143.23interest at a rate or rates which vary periodically referred to in section
143.24(6) obligations to be issued for a purpose, in a manner, and upon terms and
143.25conditions authorized by law, if the governing body of the municipality, on the advice of
143.26bond counsel or special tax counsel, determines that interest on the obligations cannot be
143.27represented to be excluded from gross income for purposes of federal income taxation;
143.28(7) obligations issued in the form of an installment purchase contract, lease purchase
143.29agreement, or other similar agreement;
143.30(8) obligations sold under a bond reinvestment program; and
143.31(9) if the municipality has retained an independent
143.32obligations which the governing body determines shall be sold by private negotiation.
144.3 Section 1. Minnesota Statutes 2014, section 15.38, subdivision 7, is amended to read:
144.4 Subd. 7. Iron Range resources and rehabilitation
144.5a recommendation from the Iron Range Resources and Rehabilitation Board, the
144.6commissioner of Iron Range resources and rehabilitation
144.7
144.8by the board.
144.9 Sec. 2. Minnesota Statutes 2014, section 116J.424, is amended to read:
144.10116J.424 IRON RANGE RESOURCES AND REHABILITATION
144.11CONTRIBUTION.
144.12The commissioner of
144.13
144.14made for a facility located in the tax relief area defined in section
144.15by the Minnesota minerals 21st century fund created by section
144.16be in the form of a loan or equity investment, notwithstanding whether the fund makes
144.17a loan or equity investment. The state shall not acquire an equity interest because of an
144.18equity investment or loan
144.19commissioner, after consultation with the Iron Range Resources and Rehabilitation Board,
144.20shall have the sole discretion to decide what interest
144.21commissioner of employment and economic development may require a commitment
144.22from the
144.23 Sec. 3. Minnesota Statutes 2014, section 216B.161, subdivision 1, is amended to read:
144.24 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
144.25have the meanings given them in this subdivision.
144.26(b) "Area development rate" means a rate schedule established by a utility that
144.27provides customers within an area development zone service under a base utility rate
144.28schedule, except that charges may be reduced from the base rate as agreed upon by the
144.29utility and the customer consistent with this section.
144.30(c) "Area development zone" means a contiguous or noncontiguous area designated
144.31by an authority or municipality for development or redevelopment and within which one
144.32of the following conditions exists:
144.33(1) obsolete buildings not suitable for improvement or conversion or other identified
144.34hazards to the health, safety, and general well-being of the community;
145.1(2) buildings in need of substantial rehabilitation or in substandard condition; or
145.2(3) low values and damaged investments.
145.3(d) "Authority" means a rural development financing authority established under
145.4sections
145.5sections
145.7to
145.8commissioner of Iron Range resources and rehabilitation, acting after consultation
145.9with the board established under section
145.10development district created under sections
145.11municipality that undertakes a project under sections
145.12located outside the metropolitan area as defined in section
145.13a population of 5,000 persons or less; or a municipality that exercises the powers of a port
145.14authority under any general or special law.
145.15(e) "Municipality" means a city, however organized, and, with respect to a project
145.16undertaken under sections
145.17sections
145.19to
145.20 Sec. 4. Minnesota Statutes 2014, section 276A.01, subdivision 8, is amended to read:
145.21 Subd. 8. Municipality. "Municipality" means a city, town, or township located
145.22in whole or part within the area. If a municipality is located partly within and partly
145.23without the area, the references in sections
145.24thereof subject to taxation or taxing jurisdiction within the municipality are to the property
145.25or portion thereof that is located in that portion of the municipality within the area,
145.26except that the fiscal capacity of the municipality must be computed upon the basis of the
145.27valuation and population of the entire municipality. A municipality shall be excluded from
145.28the area if its municipal comprehensive zoning and planning policies conscientiously
145.29exclude most commercial-industrial development, for reasons other than preserving an
145.30agricultural use. The commissioner of Iron Range resources and rehabilitation
145.31the commissioner of revenue shall jointly make this determination annually and shall
145.32notify those municipalities that are ineligible to participate in the tax base sharing program
145.33provided in this chapter for the following year. Before making the joint determination, the
145.34commissioner of Iron Range resources and rehabilitation shall seek a recommendation
145.35from the Iron Range Resources and Rehabilitation Board.
146.1 Sec. 5. Minnesota Statutes 2014, section 276A.01, subdivision 17, is amended to read:
146.2 Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up
146.3to 25 percent of the areawide levy certified by the commissioner of Iron Range resources
146.4and rehabilitation, after seeking a recommendation from the Iron Range Resources and
146.5Rehabilitation Board, to be used for the purposes of the Iron Range school consolidation
146.6and cooperatively operated school account under section
146.7(b) The allocation under paragraph (a) shall only be made after the commissioner of
146.8Iron Range resources and rehabilitation, after seeking a recommendation from the Iron
146.9Range Resources and Rehabilitation Board, has certified by June 30 that the Iron Range
146.10school consolidation and cooperatively operated account has insufficient funds to make
146.11payments as authorized under section
146.12 Sec. 6. Minnesota Statutes 2014, section 282.38, subdivision 1, is amended to read:
146.13 Subdivision 1. Development. In any county where the county board by proper
146.14resolution sets aside funds for forest development pursuant to section
146.15item (i), or section
146.16and rehabilitation
146.17Iron Range Resources and Rehabilitation Board, may upon request of the county board
146.18assist said county in carrying out any project for the long range development of its forest
146.19resources through matching of funds or otherwise.
146.20 Sec. 7. Minnesota Statutes 2014, section 298.001, subdivision 8, is amended to read:
146.21 Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue
146.22of the state of Minnesota, except that when used in sections 298.22 to 298.227, and
146.23298.291 to 298.298, "commissioner" means the commissioner of Iron Range resources
146.24and rehabilitation.
146.25 Sec. 8. Minnesota Statutes 2014, section 298.22, subdivision 1, is amended to read:
146.26 Subdivision 1. The Office of the Commissioner of Iron Range resources
146.27and rehabilitation. (a) The Office of the Commissioner of Iron Range resources and
146.28rehabilitation is created as an agency in the executive branch of state government. The
146.29governor shall appoint the commissioner of Iron Range resources and rehabilitation
146.30under section
146.31commissioner or the board for projects after submitting the expenditure to the board for
146.32a recommendation under subdivision 1a.
147.1(b) The commissioner may hold other positions or appointments that are not
147.2incompatible with duties as commissioner of Iron Range resources and rehabilitation. The
147.3commissioner may appoint a deputy commissioner. All expenses of the commissioner,
147.4including the payment of staff and other assistance as may be necessary, must be paid
147.5out of the amounts appropriated by section
147.6to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner
147.7may utilize contracting options available under section
147.8determines it is in the best interest of the agency. The agency is not subject to sections
147.10(c) When the commissioner determines that distress and unemployment exists or
147.11may exist in the future in any county by reason of the removal of natural resources or
147.12a possibly limited use of natural resources in the future and any resulting decrease in
147.13employment, the commissioner may use whatever amounts of the appropriation made to
147.14the commissioner of revenue in section
147.15proper in the development of the remaining resources of the county and in the vocational
147.16training and rehabilitation of its residents, except that the amount needed to cover cost
147.17overruns awarded to a contractor by an arbitrator in relation to a contract awarded by
147.18the commissioner or in effect after July 1, 1985, is appropriated from the general fund.
147.19For the purposes of this section, "development of remaining resources" includes, but is
147.20not limited to, the promotion of tourism.
147.21 Sec. 9. Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read:
147.22 Subd. 1a. Iron Range Resources and Rehabilitation Board. The Iron Range
147.23Resources and Rehabilitation Board consists of the state senators and representatives
147.24elected from state senatorial or legislative districts in which one-third or more of the
147.25residents reside in a taconite assistance area as defined in section
147.26state senator shall also be appointed by the senate Subcommittee on Committees of the
147.27Committee on Rules and Administration. All expenditures and projects made by the
147.28commissioner shall first be submitted to the board
147.29approval or disapproval or modification of the expenditures and projects. The expenses
147.30of the board shall be paid by the state from the funds raised pursuant to this section.
147.31Members of the board may be reimbursed for expenses in the manner provided in sections
147.33between legislative sessions in the manner provided in section
148.1The members shall be appointed in January of every odd-numbered year, and shall
148.2serve until January of the next odd-numbered year. Vacancies on the board shall be filled
148.3in the same manner as original members were chosen.
148.4 Sec. 10. Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read:
148.5 Subd. 5a. Forest trust. The commissioner,
148.6recommendation from the board, may purchase forest lands in the taconite assistance area
148.7defined in under section
148.8acquired forest lands must be held in trust for the benefit of the citizens of the taconite
148.9assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall
148.10be managed and developed for recreation and economic development purposes. The
148.11commissioner,
148.12may sell forest lands purchased under this subdivision if the
148.13determines that the sale advances the purposes of the trust. Proceeds derived from the
148.14management or sale of the lands and from the sale of timber or removal of gravel or
148.15other minerals from these forest lands shall be deposited into an Iron Range Miners'
148.16Memorial Forest account that is established within the state financial accounts. Funds may
148.17be expended from the account
148.18recommendation from the board, to purchase, manage, administer, convey interests in,
148.19and improve the forest lands.
148.20recommendation from the board, money in the Iron Range Miners' Memorial Forest
148.21account may be transferred into the corpus of the Douglas J. Johnson economic protection
148.22trust fund established under sections
148.23the authority granted by this subdivision and income derived from the property or the
148.24operation or management of the property are exempt from taxation by the state or its
148.25political subdivisions while held by the forest trust.
148.26 Sec. 11. Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read:
148.27 Subd. 6. Private entity participation. After seeking a recommendation from the
148.28board, the commissioner may acquire an equity interest in any project for which
148.29commissioner provides funding. The commissioner may establish, participate in the
148.30management of, and dispose of the assets of charitable foundations, nonprofit limited
148.31liability companies, and nonprofit corporations associated with any project for which it
148.32provides funding, including specifically, but without limitation, a corporation within the
148.33meaning of section
149.1 Sec. 12. Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read:
149.2 Subd. 8. Spending priority. In making or
149.3expenditures on programs or projects, the commissioner and the board shall give the
149.4highest priority to programs and projects that target relief to those areas of the taconite
149.5assistance area as defined in section
149.6losses and population losses directly attributable to the economic downturn in the taconite
149.7industry since the 1980s. The commissioner and the board shall compare the 1980
149.8population and employment figures with the 2000 population and employment figures,
149.9and shall specifically consider the job losses in 2000 and 2001 resulting from the closure
149.10of LTV Steel Mining Company, in making or
149.11consistent with this subdivision, as well as the areas of residence of persons who suffered
149.12job loss for which relief is to be targeted under this subdivision. The commissioner
149.13may lease, for a term not exceeding 50 years and upon the terms determined by the
149.14commissioner
149.15interests owned or acquired by the state of Minnesota acting by and through the office of
149.16the commissioner of Iron Range resources and rehabilitation within those portions of the
149.17taconite assistance area affected by the closure of the LTV Steel Mining Company facility
149.18near Hoyt Lakes. The payments and royalties from these leases must be deposited into the
149.19fund established in section
149.20provisions of law and does not preclude the commissioner
149.21expenditures for programs and projects in other areas after seeking review by the board.
149.22 Sec. 13. Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read:
149.23 Subd. 10. Sale or privatization of functions. The commissioner of Iron
149.24Range resources and rehabilitation may not sell or privatize the Ironworld Discovery
149.25Center or Giants Ridge Golf and Ski Resort without
149.26recommendation from the board.
149.27 Sec. 14. Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read:
149.28 Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation
149.29shall annually prepare a budget for operational expenditures, programs, and projects, and
149.30submit it to the Iron Range Resources and Rehabilitation Board for a recommendation.
149.31After the budget is approved by
149.32money in accordance with the approved budget.
149.33 Sec. 15. Minnesota Statutes 2014, section 298.221, is amended to read:
150.1298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
150.2(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
150.3pursuant to the terms of any contract entered into by the state under authority of section
150.5resources and rehabilitation, be charged in connection with any project pursuant to that
150.6section as amended, shall be deposited in the state treasury to the credit of the Iron Range
150.7Resources and Rehabilitation Board account in the special revenue fund and are hereby
150.8appropriated for the purposes of section
150.9(b) Notwithstanding section
150.10commissioner of the Iron Range Resources and Rehabilitation Board for payment of
150.11advertising contracts if the commissioner determines that the merchandise can be used
150.12for special event prizes or mementos at facilities operated by the board. Nothing in this
150.13paragraph authorizes the commissioner or a member of the board to receive merchandise
150.14for personal use.
150.15(c) All fees charged by the commissioner in connection with public use of the
150.16state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
150.17revenues derived by the commissioner from the operation or lease of those facilities
150.18and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
150.19Recreation Area must be deposited into an Iron Range Resources and Rehabilitation
150.20Board account that is created within the state enterprise fund. All funds deposited in the
150.21enterprise fund account are appropriated to the commissioner to be expended,
150.22
150.23(1) to pay costs associated with the construction, equipping, operation, repair, or
150.24improvement of the Giants Ridge Recreation Area facilities or lands;
150.25(2) to pay principal, interest and associated bond issuance, reserve, and servicing
150.26costs associated with the financing of the facilities; and
150.27(3) to pay the costs of any other project authorized under section
150.28 Sec. 16. Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read:
150.29 Subd. 3. Project approval. All projects authorized by this section shall be submitted
150.30by the commissioner to the Iron Range Resources and Rehabilitation Board for
150.31
150.32the exercise by the commissioner of any authority of sections
150.33governing body of each municipality in which any part of the project is located and the
150.34county board of any county containing portions of the project not located in an incorporated
150.35area shall by majority vote approve or disapprove the project. Any project approved by
151.1the
151.2information concerning the project, its costs, the sources of its funding, and the amount of
151.3any bonded indebtedness to be incurred in connection with the project, shall be transmitted
151.4to the governor, who shall approve, disapprove, or return the proposal for additional
151.5consideration within 30 days of receipt. No project authorized under this section shall be
151.6undertaken, and no obligations shall be issued and no tax increments shall be expended for
151.7a project authorized under this section until the project has been approved by the governor.
151.8 Sec. 17. Minnesota Statutes 2014, section 298.2213, subdivision 4, is amended to read:
151.9 Subd. 4. Project approval. After seeking a recommendation from the board
151.10the commissioner shall by August 1 each year prepare a list of projects to be funded from
151.11the money appropriated in this section with necessary supporting information including
151.12descriptions of the projects, plans, and cost estimates. A project must not be approved by
151.13the
151.14(1) the project will materially assist, directly or indirectly, the creation of additional
151.15long-term employment opportunities;
151.16(2) the prospective benefits of the expenditure exceed the anticipated costs; and
151.17(3) in the case of assistance to private enterprise, the project will serve a sound
151.18business purpose.
151.19Each project must be approved by the
151.20resources and rehabilitation. The list of projects must be submitted to the governor,
151.21who shall, by November 15 of each year, approve, disapprove, or return for further
151.22consideration, each project. The money for a project may be spent only upon approval of
151.23the project by the governor. The
151.24for approval at any time, after seeking a recommendation from the board.
151.25 Sec. 18. Minnesota Statutes 2014, section 298.2213, subdivision 5, is amended to read:
151.26 Subd. 5. Advisory committees.
151.27
151.28of Iron Range resources and rehabilitation shall appoint a technical advisory committee
151.29consisting of at least seven persons who are knowledgeable in areas related to the
151.30objectives of the proposal. If the project involves investment in a scientific research
151.31proposal, at least four of the committee members must be knowledgeable in the specific
151.32scientific research area relating to the project. Members of the committees must be
151.33compensated as provided in section
151.34not act on a proposal for a request for expenditure of money appropriated under this
152.1section until
152.2evaluation and recommendations of the technical advisory committee.
152.3 Sec. 19. Minnesota Statutes 2014, section 298.2213, subdivision 6, is amended to read:
152.4 Subd. 6. Use of repayments and earnings. Principal and interest received in
152.5repayment of loans made under this section must be deposited in the
152.6
152.7economic development fund account in the special revenue fund in the state treasury. The
152.8commissioner of Iron Range resources and rehabilitation must seek a recommendation
152.9from the Iron Range Resources and Rehabilitation Board for any use of funds appropriated
152.10under this section.
152.11 Sec. 20. Minnesota Statutes 2014, section 298.223, subdivision 1, is amended to read:
152.12 Subdivision 1. Creation; purposes. A fund called the taconite environmental
152.13protection fund is created for the purpose of reclaiming, restoring and enhancing those
152.14areas of northeast Minnesota located within the taconite assistance area defined in section
152.16involved in mining taconite and iron ore and producing iron ore concentrate and for the
152.17purpose of promoting the economic development of northeast Minnesota. The taconite
152.18environmental protection fund shall be used for the following purposes:
152.19(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
152.20Board determines are in need of study and which will determine the environmental
152.21problems requiring remedial action;
152.22(2) reclamation, restoration, or reforestation of mine lands not otherwise provided
152.23for by state law;
152.24(3) local economic development projects but only if those projects are approved by
152.25the
152.26and public works, including construction of sewer and water systems located within the
152.27taconite assistance area defined in section
152.28(4) monitoring of mineral industry related health problems among mining employees;
152.29(5) local public works projects under section
152.30(6) local public works projects as provided under this clause. The following amounts
152.31shall be distributed in 2009 based upon the taxable tonnage of production in 2008:
152.32(i) .4651 cent per ton to the city of Aurora for street repair and renovation;
152.33(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure
152.34improvements to the south side industrial site;
153.1(iii) .6460 cent per ton to the city of Buhl for street repair;
153.2(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;
153.3(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure
153.4upgrades;
153.5(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure
153.6upgrades;
153.7(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;
153.8(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility
153.9modifications for the miners' memorial;
153.10(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;
153.11(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;
153.12(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;
153.13(xii) .6460 cent per ton to the town of Balkan for community center repairs;
153.14(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;
153.15(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;
153.16(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;
153.17(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;
153.18(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;
153.19(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;
153.20(xix) .3230 cent per ton to Lake County for trail construction;
153.21(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand
153.22Marais;
153.23(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure
153.24improvements;
153.25(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;
153.26(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer
153.27improvements along Gayley Avenue;
153.28(xxiv) .3876 cent per ton to the city of Marble for construction of a city
153.29administration facility;
153.30(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the
153.31community center;
153.32(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure
153.33upgrades;
153.34(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades
153.35along Depot Street;
154.1(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter
154.2improvements;
154.3(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer
154.4infrastructure upgrades at Pokegema Golf Course and Park Place;
154.5(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades
154.6for 1st Avenue from River Road to 3rd Street SE; and
154.7(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing
154.8at Highway 2 and County Road 62.
154.9 Sec. 21. Minnesota Statutes 2014, section 298.223, subdivision 2, is amended to read:
154.10 Subd. 2. Administration. (a) The taconite area environmental protection fund shall
154.11be administered by the commissioner of the Iron Range Resources and Rehabilitation
154.12Board. The commissioner shall by September 1 of each year submit to the board a list
154.13of projects to be funded from the taconite area environmental protection fund, with such
154.14supporting information including description of the projects, plans, and cost estimates as
154.15may be necessary.
154.16 (b) Each year no less than one-half of the amounts deposited into the taconite
154.17environmental protection fund must be used for public works projects, including
154.18construction of sewer and water systems, as specified under subdivision 1, clause (3).
154.19After seeking a recommendation from the Iron Range Resources and Rehabilitation Board,
154.20the commissioner may waive the requirements of this paragraph.
154.21 (c)
154.22under this subdivision, after the commissioner has sought review of the projects by the
154.23board, shall be submitted to the governor by November 1 of each year. By December 1 of
154.24each year, the governor shall approve or disapprove, or return for further consideration,
154.25each project. Funds for a project may be expended only upon approval of the project by
154.26the
154.27projects
154.28of the supplemental projects from the board at any time.
154.29 Sec. 22. Minnesota Statutes 2014, section 298.227, is amended to read:
154.30298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
154.31 (a) An amount equal to that distributed pursuant to each taconite producer's taxable
154.32production and qualifying sales under section
154.33the Iron Range Resources and Rehabilitation Board in a separate taconite economic
154.34development fund for each taconite and direct reduced ore producer. Money from the
155.1fund for each producer shall be released by the commissioner after review by a joint
155.2committee consisting of an equal number of representatives of the salaried employees and
155.3the nonsalaried production and maintenance employees of that producer. The District 11
155.4director of the United States Steelworkers of America, on advice of each local employee
155.5president, shall select the employee members. In nonorganized operations, the employee
155.6committee shall be elected by the nonsalaried production and maintenance employees. The
155.7review must be completed no later than six months after the producer presents a proposal
155.8for expenditure of the funds to the committee. The funds held pursuant to this section may
155.9be released only for workforce development and associated public facility improvement,
155.10or for acquisition of plant and stationary mining equipment and facilities for the producer
155.11or for research and development in Minnesota on new mining, or taconite, iron, or steel
155.12production technology, but only if the producer provides a matching expenditure equal to
155.13the amount of the distribution to be used for the same purpose beginning with distributions
155.14in 2014. Effective for proposals for expenditures of money from the fund beginning May
155.1526, 2007, the commissioner may not release the funds before the next scheduled meeting
155.16of the board. If a proposed expenditure is not approved by the commissioner, after
155.17seeking a recommendation from the board, the funds must be deposited in the Taconite
155.18Environmental Protection Fund under sections
155.19money which has been released from the fund prior to May 26, 2007 to procure haulage
155.20trucks, mobile equipment, or mining shovels, and the producer removes the piece of
155.21equipment from the taconite tax relief area defined in section
155.22from the date of receipt of the money from the fund, a portion of the money granted
155.23from the fund must be repaid to the taconite economic development fund. The portion
155.24of the money to be repaid is 100 percent of the grant if the equipment is removed from
155.25the taconite tax relief area within 12 months after receipt of the money from the fund,
155.26declining by ten percent for each of the subsequent nine years during which the equipment
155.27remains within the taconite tax relief area. If a taconite production facility is sold after
155.28operations at the facility had ceased, any money remaining in the fund for the former
155.29producer may be released to the purchaser of the facility on the terms otherwise applicable
155.30to the former producer under this section. If a producer fails to provide matching funds
155.31for a proposed expenditure within six months after the commissioner approves release
155.32of the funds, the funds are available for release to another producer in proportion to the
155.33distribution provided and under the conditions of this section. Any portion of the fund
155.34which is not released by the commissioner within one year of its deposit in the fund shall
155.35be divided between the taconite environmental protection fund created in section
156.1placement in their respective special accounts. Two-thirds of the unreleased funds shall be
156.2distributed to the taconite environmental protection fund and one-third to the Douglas J.
156.3Johnson economic protection trust fund.
156.4 (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
156.5distributions and the review process, an amount equal to ten cents per taxable ton of
156.6production in 2007, for distribution in 2008 only, that would otherwise be distributed under
156.7paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
156.8wood product facility located in the taconite tax relief area and in a county that contains a
156.9city of the first class. This amount must be deducted from the distribution under paragraph
156.10(a) for which a matching expenditure by the producer is not required. The granting of the
156.11loan or grant is subject to approval by the commissioner, after seeking a recommendation
156.12from the board. If the money is provided as a loan, interest must be payable on the loan at
156.13the rate prescribed in section
156.14interest, if any, must be deposited in the taconite environment protection fund under
156.15sections
156.162012, the amount that had been made available for the loan under this paragraph must be
156.17transferred to the taconite environment protection fund under sections
156.18(iii) Money distributed in 2008 to the fund established under this section that exceeds ten
156.19cents per ton is available to qualifying producers under paragraph (a) on a pro rata basis.
156.20(c) Repayment or transfer of money to the taconite environmental protection fund
156.21under paragraph (b), item (ii), must be allocated by the commissioner of Iron Range
156.22resources and rehabilitation, after seeking a recommendation from the Iron Range
156.23Resources and Rehabilitation Board for public works projects in house legislative districts
156.24in the same proportion as taxable tonnage of production in 2007 in each house legislative
156.25district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for
156.26distribution in 2008. Notwithstanding any other law to the contrary, expenditures under
156.27this paragraph do not require approval by the governor. For purposes of this paragraph,
156.28"house legislative districts" means the legislative districts in existence on May 15, 2009.
156.29 Sec. 23. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:
156.30 Subd. 7a. Iron Range school consolidation and cooperatively operated school
156.31account. The following amounts must be allocated to the Iron Range Resources and
156.32Rehabilitation Board to be deposited in the Iron Range school consolidation and
156.33cooperatively operated school account that is hereby created:
157.1(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
157.2imposed under section
157.3taxable ton of the tax imposed under section
157.4(2) the amount as determined under section
157.5(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
157.6proceeds attributable to the increase in the implicit price deflator as provided in section
157.8Johnson economic protection trust fund;
157.9(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the
157.10increased tax proceeds attributable to the increase in the implicit price deflator as provided
157.11in section
157.12one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
157.13(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the
157.14increased tax proceeds attributable to the increase in the implicit price deflator as provided
157.15in section
157.16remaining one-third to be distributed to the Douglas J. Johnson economic protection
157.17trust fund; and
157.18(4) any other amount as provided by law.
157.19Expenditures from this account may be approved as ongoing annual expenditures
157.20and shall be made only to provide disbursements to assist school districts with the
157.21payment of bonds that were issued for qualified school projects, or for any other school
157.22disbursement as approved by the commissioner of Iron Range resources and rehabilitation
157.23after the commissioner of Iron Range resources and rehabilitation has sought review of the
157.24expenditures by the Iron Range Resources and Rehabilitation Board. For purposes of this
157.25section, "qualified school projects" means school projects within the taconite assistance
157.26area as defined in section
157.272006; and (2) approved by the commissioner of education pursuant to section
157.28Beginning in fiscal year 2019, the disbursement to school districts for payments for
157.29bonds issued under section
157.30offset any reduction in debt service equalization aid that the school district qualifies for in
157.31that year, under section
157.32district qualified for in fiscal year 2018.
157.33No expenditure under this section shall be made unless approved by
157.34
157.35expenditure from the Iron Range Resources and Rehabilitation Board.
158.1 Sec. 24. Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read:
158.2 Subd. 9d. Iron Range higher education account. Five cents per taxable ton must
158.3be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
158.4an Iron Range higher education account that is hereby created, to be used for higher
158.5education programs conducted at educational institutions in the taconite assistance area
158.6defined in section
158.8Range resources and rehabilitation must approve all expenditures from the account, after
158.9seeking review and recommendation of the expenditures from the Iron Range Resources
158.10and Rehabilitation Board.
158.11 Sec. 25. Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read:
158.12 Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
158.13fund may be used for the following purposes:
158.14 (1) to provide loans, loan guarantees, interest buy-downs and other forms of
158.15participation with private sources of financing, but a loan to a private enterprise shall be
158.16for a principal amount not to exceed one-half of the cost of the project for which financing
158.17is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
158.18lesser of eight percent or an interest rate three percentage points less than a full faith
158.19and credit obligation of the United States government of comparable maturity, at the
158.20time that the loan is approved;
158.21 (2) to fund reserve accounts established to secure the payment when due of the
158.22principal of and interest on bonds issued pursuant to section
158.23 (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
158.24on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
158.25or retrofitting heating facilities in connection with district heating systems or systems
158.26utilizing alternative energy sources;
158.27 (4) to invest in a venture capital fund or enterprise that will provide capital to other
158.28entities that are engaging in, or that will engage in, projects or programs that have the
158.29purposes set forth in subdivision 1. No investments may be made in a venture capital fund
158.30or enterprise unless at least two other unrelated investors make investments of at least
158.31$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
158.32J. Johnson economic protection trust fund may not exceed the amount of the largest
158.33investment by an unrelated investor in the venture capital fund or enterprise. For purposes
158.34of this subdivision, an "unrelated investor" is a person or entity that is not related to
158.35the entity in which the investment is made or to any individual who owns more than 40
159.1percent of the value of the entity, in any of the following relationships: spouse, parent,
159.2child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
159.3the value of all interests in it. For purposes of determining the limitations under this
159.4clause, the amount of investments made by an investor other than the Douglas J. Johnson
159.5economic protection trust fund is the sum of all investments made in the venture capital
159.6fund or enterprise during the period beginning one year before the date of the investment
159.7by the Douglas J. Johnson economic protection trust fund; and
159.8 (5) to purchase forest land in the taconite assistance area defined in section
159.10authorized in section
159.11be sold by the commissioner
159.12the board. The net proceeds must be deposited in the trust fund for the purposes and
159.13uses of this section.
159.14 Money from the trust fund shall be expended only in or for the benefit of the taconite
159.15assistance area defined in section
159.16 Sec. 26. Minnesota Statutes 2014, section 298.294, is amended to read:
159.17298.294 INVESTMENT OF FUND.
159.18(a) The trust fund established by section
159.19by the State Board of Investment and the net interest, dividends, and other earnings arising
159.20from the investments shall be transferred, except as provided in paragraph (b), on the first
159.21day of each month to the trust and shall be included and become part of the trust fund.
159.22The amounts transferred, including the interest, dividends, and other earnings earned
159.23prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
159.241983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
159.25commissioner of Iron Range resources and rehabilitation for deposit in a separate account
159.26for expenditure for the purposes set forth in section
159.27pursuant to this section shall not cancel but shall remain available unless expended.
159.28(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends,
159.29and other earnings under paragraph (a) shall be transferred to a special account. Funds
159.30in the special account are available for loans or grants to businesses, with priority given
159.31to businesses with 25 or fewer employees. Funds may be used for wage subsidies for
159.32up to 52 weeks of up to $5 per hour or other activities, including, but not limited to,
159.33short-term operating expenses and purchase of equipment and materials by businesses
159.34under financial duress, that will create additional jobs in the taconite assistance area
160.1under section
160.2commissioner after seeking a recommendation from the board.
160.3(c) To qualify for a grant or loan, a business must be currently operating and have
160.4been operating for one year immediately prior to its application for a loan or grant, and its
160.5corporate headquarters must be located in the taconite assistance area.
160.6 Sec. 27. Minnesota Statutes 2014, section 298.296, subdivision 1, is amended to read:
160.7 Subdivision 1. Project approval. (a) The commissioner of Iron Range resources and
160.8rehabilitation, after seeking a recommendation from the board
160.9August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson
160.10economic protection trust with necessary supporting information including description of
160.11the projects, plans, and cost estimates. These projects shall be consistent with the priorities
160.12established in section
160.13unless
160.14
160.15additional long-term employment opportunities;
160.16
160.17
160.18business purpose.
160.19(b) Each project must be approved by
160.20
160.21recommendation from the board for the project. The list of projects shall be submitted to
160.22the governor, who shall, by November 15 of each year, approve or disapprove, or return
160.23for further consideration, each project. The money for a project may be expended only
160.24upon approval of the project by the governor. The
160.25supplemental
160.26the project from the board.
160.27 Sec. 28. Minnesota Statutes 2014, section 298.296, subdivision 2, is amended to read:
160.28 Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended
160.29on projects and for administration of the trust fund only from the net interest, earnings,
160.30and dividends arising from the investment of the trust at any time, including net interest,
160.31earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
160.32available for use in fiscal year 1983, except that any amount required to be paid out of the
160.33trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
160.34X, section 4, and to make school bond payments and payments to recipients of taconite
161.1production tax proceeds pursuant to section
161.2the trust.
161.3 (b) Additionally, upon recommendation by the commissioner after seeking a
161.4recommendation from the board, up to $13,000,000 from the corpus of the trust may be
161.5made available for use as provided in subdivision 4, and up to $10,000,000 from the
161.6corpus of the trust may be made available for use as provided in section
161.7 (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
161.8on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
161.9made available under section
161.108, section 17, may be expended on projects. Funds may be expended for projects under
161.11this paragraph only if the project:
161.12 (1) is for the purposes established under section
161.13(1) or (2); and
161.14 (2) is approved by
161.15seeking a recommendation from the board.
161.16No money made available under this paragraph or paragraph (d) can be used for
161.17administrative or operating expenses of the Iron Range Resources and Rehabilitation Board
161.18or expenses relating to any facilities owned or operated by the board on May 18, 2002.
161.19 (d) Upon recommendation by
161.20after seeking a unanimous recommendation of the board, amounts in addition to those
161.21authorized under paragraphs (a), (b), and (c) may be expended on projects described in
161.22section
161.23 (e) Annual administrative costs, not including detailed engineering expenses for the
161.24projects, shall not exceed five percent of the net interest, dividends, and earnings arising
161.25from the trust in the preceding fiscal year.
161.26 (f) Principal and interest received in repayment of loans made pursuant to this
161.27section, and earnings on other investments made under section
161.28clause (4), shall be deposited in the state treasury and credited to the trust. These receipts
161.29are appropriated to the board for the purposes of sections
161.30 (g) Additionally, notwithstanding section
161.31commissioner of Iron Range resources and rehabilitation, after seeking a recommendation
161.32from the board, money from the corpus of the trust may be expanded to purchase forest
161.33lands within the taconite assistance area as provided in sections
161.34and
161.35 Sec. 29. Minnesota Statutes 2014, section 298.296, subdivision 4, is amended to read:
162.1 Subd. 4. Temporary loan authority. (a) After seeking a recommendation from the
162.2board, the commissioner of Iron Range resources and rehabilitation may
162.3use up to $7,500,000 from the corpus of the trust may be
162.4grants, or equity investments as provided in this subdivision. The money would be
162.5available for loans for construction and equipping of facilities constituting (1) a value
162.6added iron products plant, which may be either a new plant or a facility incorporated into
162.7an existing plant that produces iron upgraded to a minimum of 75 percent iron content or
162.8any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine
162.9or minerals processing plant for any mineral subject to the net proceeds tax imposed
162.10under section
162.11$5,000,000 for any facility.
162.12(b) Additionally, the
162.13must reserve the first $2,000,000 of the net interest, dividends, and earnings arising
162.14from the investment of the trust after June 30, 1996, to be used for grants, loans, loan
162.15guarantees, or equity investments for the purposes set forth in paragraph (a). This amount
162.16must be reserved until it is used as described in this subdivision.
162.17(c) Additionally, the
162.18from the corpus of the trust may be used for additional grants, loans, loan guarantees, or
162.19equity investments for the purposes set forth in paragraph (a).
162.20(d) The commissioner of Iron Range resources and rehabilitation, after seeking a
162.21recommendation from the board, may require that
162.22in any project to which it contributes under this section.
162.23 Sec. 30. Minnesota Statutes 2014, section 298.2961, subdivision 2, is amended to read:
162.24 Subd. 2. Projects; approval. (a) Projects funded must be for:
162.25 (1) environmentally unique reclamation projects; or
162.26 (2) pit or plant repairs, expansions, or modernizations other than for a value added
162.27iron products plant.
162.28 (b)
162.29commissioner may propose a project, the commissioner must seek a recommendation
162.30from the board. The money for a project may be spent only upon approval of the project
162.31by the governor. The
162.32approval at any time after seeking a recommendation for the project from the board.
162.33 (c) The
162.34percentage in any project to which it contributes under this section.
163.1 Sec. 31. Minnesota Statutes 2014, section 298.2961, subdivision 4, is amended to read:
163.2 Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions
163.3under section
163.4subdivision. Any grant or loan made under this subdivision must first be approved by
163.5the commissioner after seeking a recommendation from the board, established under
163.6section
163.7 (b) Distributions received in calendar year 2005 are allocated to the city of Virginia
163.8for improvements and repairs to the city's steam heating system.
163.9 (c) Distributions received in calendar year 2006 are allocated to a project of the
163.10public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
163.11generating plants to the use of biomass products, such as wood.
163.12 (d) Distributions received in calendar year 2007 must be paid to the city of Tower to
163.13be used for the East Two Rivers project in or near the city of Tower.
163.14 (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
163.15must be paid to St. Louis County for deposit in its county road and bridge fund to be
163.16used for relocation of St. Louis County Road 715, commonly referred to as Pike River
163.17Road. The remainder of the 2008 distribution must be paid to St. Louis County for a
163.18grant to the city of Virginia for connecting sewer and water lines to the St. Louis County
163.19maintenance garage on Highway 135, further extending the lines to interconnect with the
163.20city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent
163.21years are allocated for projects under section
163.22 Sec. 32. Minnesota Statutes 2014, section 298.298, is amended to read:
163.23298.298 LONG-RANGE PLAN.
163.24Consistent with the policy established in sections
163.25Range Resources and Rehabilitation Board shall prepare and present to the governor and
163.26the legislature by December 31, 2006, a long-range plan for the use of the Douglas J.
163.27Johnson economic protection trust fund for the economic development and diversification
163.28of the taconite assistance area defined in section
163.29recommended by the Iron Range Resources and Rehabilitation Board
163.30finds that the project is not consistent with the goals and objectives established in the
163.31long-range plan.
163.32 Sec. 33. Minnesota Statutes 2014, section 298.46, subdivision 2, is amended to read:
163.33 Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly
163.34constituted authorities of a taxing district there are in existence reserves of unmined iron
164.1ore located in such district, these authorities may petition the commissioner of Iron Range
164.2resources and rehabilitation
164.3the existence of such reserves and to ascertain the value thereof by drilling in a manner
164.4consistent with established engineering and geological exploration methods, in order that
164.5such taxing district may be able to forecast in a proper manner its future economic and
164.6fiscal potentials. The commissioner of Iron Range resources and rehabilitation may grant
164.7the authority to petition after seeking a recommendation from the Iron Range Resources
164.8and Rehabilitation Board.
164.9 Sec. 34. IRON RANGE RESOURCES AND REHABILITATION BOARD;
164.10EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
164.11(a) "Commissioner" as used in this section means the commissioner of the Iron
164.12Range Resources and Rehabilitation Board unless otherwise specified.
164.13(b) Notwithstanding any law to the contrary, the commissioner, in consultation
164.14with the commissioner of management and budget, shall offer a targeted early separation
164.15incentive program for employees of the commissioner who have attained the age of 60
164.16years or who have received credit for at least 30 years of allowable service under the
164.17provisions of Minnesota Statutes, chapter 352. The commissioner shall also offer a
164.18targeted separation incentive program for employees of the commissioner whose positions
164.19are in support of operations at Giants Ridge and will be eliminated if the agency no longer
164.20directly manages Giants Ridge operations.
164.21(c) The early separation incentive program may include one or more of the following:
164.22(1) employer-paid postseparation health, medical, and dental insurance until age
164.2365; and
164.24(2) cash incentives that may, but are not required to be, used to purchase additional
164.25years of service credit through the Minnesota State Retirement System, to the extent that
164.26the purchases are otherwise authorized by law.
164.27(d) The commissioner shall establish eligibility requirements for employees to
164.28receive an incentive.
164.29(e) The commissioner, consistent with the established program provisions under
164.30paragraph (b), and with the eligibility requirements under paragraph (f), may designate
164.31specific programs or employees as eligible to be offered the incentive program.
164.32(f) Acceptance of the offered incentive must be voluntary on the part of the
164.33employee and must be in writing. The incentive may only be offered at the sole discretion
164.34of the commissioner.
165.1(g) The cost of the incentive is payable solely by funds made available to the
165.2commissioner by law, but only on prior approval of the expenditures by the commissioner,
165.3after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.
165.4(h) Unilateral implementation of this section by the commissioner is not an unfair
165.5labor practice under Minnesota Statutes, chapter 179A.
165.6EFFECTIVE DATE.This section is effective the day following final enactment.
165.7This section is repealed June 30, 2017.
165.8 Sec. 35. REVISOR'S INSTRUCTION.
165.9The revisor of statutes shall identify and propose necessary changes to Minnesota
165.10Statutes and Minnesota Rules that are consistent with the goals of this act to (i) transfer
165.11discretionary approval authority for all expenditures and projects from the Iron Range
165.12Resources and Rehabilitation Board to the commissioner of Iron Range resources and
165.13rehabilitation, and (ii) provide that the commissioner must, in good faith, seek the review
165.14and recommendation of the board, as required, before exercising approval authority. The
165.15revisor shall submit the proposal, in a form ready for introduction, during the 2017 regular
165.16legislative session to the chairs and ranking minority members of the senate and house of
165.17representatives committees with jurisdiction over taxes.
165.20 Section 1. Minnesota Statutes 2014, section 290C.01, is amended to read:
165.21290C.01 PURPOSE.
165.22It is the policy of this state to promote sustainable forest resource management on
165.23the state's public and private lands.
165.24approximately one-half of the state forest land resources
165.25
165.26play a critical role in protecting water quality and soil resources, and provide extensive
165.27wildlife habitat, diverse recreational experiences, and significant forest products that
165.28support the state's economy. Ad valorem property taxes represent a significant annual
165.29cost that can discourage long-term forest management investments. In order to foster
165.30silviculture investments and retain these forests for their economic and ecological benefits,
165.31this chapter, hereafter referred to as the "Sustainable Forest Incentive Act," is enacted
165.32to encourage the state's private forest landowners to make a long-term commitment to
165.33sustainable forest management.
166.1 Sec. 2. Minnesota Statutes 2014, section 290C.02, subdivision 1, is amended to read:
166.2 Subdivision 1. Application. When used in sections
166.3the terms in this section have the meanings given them.
166.4EFFECTIVE DATE.This section is effective the day following final enactment.
166.5 Sec. 3. Minnesota Statutes 2014, section 290C.02, subdivision 3, is amended to read:
166.6 Subd. 3. Claimant. (a) "Claimant" means:
166.7 (1) a person, as that term is defined in section
166.8forest land in Minnesota and files an application authorized by the Sustainable Forest
166.9Incentive Act;
166.10 (2) a purchaser or grantee if property enrolled in the program was sold or transferred
166.11after the original application was filed and prior to the annual incentive payment being
166.12made; or
166.13 (3) an owner of land previously covered by an auxiliary forest contract that
166.14automatically qualifies for inclusion in the Sustainable Forest Incentive Act program
166.15pursuant to section
166.16
166.17
166.19of the expiration of the auxiliary forest contract or land trade with a governmental unit
166.20and submit an application to the commissioner by
166.21to receive a payment by October 1 of that same year. For purposes of section
166.22claimant also includes any person bound by the covenant required in section
166.23
166.24respect to any tract, parcel, or piece of land enrolled under this chapter that has been
166.25assigned the same parcel identification number. When enrolled forest land is owned by
166.26two or more persons, the owners must determine between them which person is eligible
166.27to claim the payments provided under sections
166.28case of property sold or transferred, the former owner and the purchaser or grantee must
166.29determine between them which person is eligible to claim the payments provided under
166.30sections
166.31the commissioner in writing which person is eligible to claim the payments.
166.32EFFECTIVE DATE.This section is effective for certifications and applications
166.33due in 2017 and thereafter.
167.1 Sec. 4. Minnesota Statutes 2014, section 290C.02, subdivision 6, is amended to read:
167.2 Subd. 6. Forest land. "Forest land" means land containing a minimum of 20
167.3contiguous acres for which the owner has implemented a forest management plan that was
167.4prepared or updated within the past ten years by an approved plan writer. For purposes of
167.5this subdivision, acres are considered to be contiguous even if they are separated by a road,
167.6waterway, railroad track, or other similar intervening property. At least 50 percent of the
167.7contiguous acreage must meet the definition of forest land in section
167.8For the purposes of sections
167.9(i) land used for residential or agricultural purposes, (ii) land enrolled in the reinvest in
167.10Minnesota program, a state or federal conservation reserve or easement reserve program
167.11under sections
167.12section
167.13as defined in section
167.14chapter 473H, (iii)
167.15
167.16
167.17easement funded under section
167.18to a governmental or nonprofit entity after May 30, 2013; or
167.19structure
167.20to the state of Minnesota or a political subdivision; sewer
167.21than a township road, used for purposes not prescribed in the forest management plan.
167.22EFFECTIVE DATE.This section is effective for applications made in 2017 and
167.23thereafter.
167.24 Sec. 5. Minnesota Statutes 2014, section 290C.03, is amended to read:
167.25290C.03 ELIGIBILITY REQUIREMENTS.
167.26(a) Land may be enrolled in the sustainable forest incentive program under this
167.27chapter if all of the following conditions are met:
167.28(1) the land consists of at least 20 contiguous acres and at least 50 percent of the
167.29land must meet the definition of forest land in section
167.30enrollment;
167.31(2) a forest management plan for the land must be prepared by an approved plan
167.32writer and implemented during the period in which the land is enrolled;
168.1(3) timber harvesting and forest management guidelines must be used in conjunction
168.2with any timber harvesting or forest management activities conducted on the land during
168.3the period in which the land is enrolled;
168.4(4) the land must be enrolled for a minimum of eight years;
168.5(5) there are no delinquent property taxes on the land;
168.6(6) claimants enrolling more than 1,920 acres or enrolling any land that is subject
168.7to a conservation easement funded under section 97A.056, or a comparable permanent
168.8easement conveyed to a governmental or nonprofit entity in the sustainable forest incentive
168.9program must allow year-round, nonmotorized access to fish and wildlife resources and
168.10motorized access on established and maintained roads and trails, unless the road or trail is
168.11temporarily closed for safety, natural resource, or road damage reasons on enrolled land
168.12except within one-fourth mile of a permanent dwelling or during periods of high fire
168.13hazard as determined by the commissioner of natural resources
168.14(7) the claimant has registered the forest management plan under clause (2) with the
168.15commissioner of natural resources, who has determined that the land meets qualifications
168.16for enrollment; and
168.17(8) the land is not classified as class 2c managed forest land.
168.18(b) Claimants required to allow access under paragraph (a), clause (6), do not by
168.19that action:
168.20(1) extend any assurance that the land is safe for any purpose;
168.21(2) confer upon the person the legal status of an invitee or licensee to whom a duty
168.22of care is owed; or
168.23(3) assume responsibility for or incur liability for any injury to the person or property
168.24caused by an act or omission of the person.
168.25(c) The commissioner of natural resources shall annually provide county assessors
168.26verification information regarding plan registration under paragraph (a), clause (7), on
168.27a timely basis.
168.28(d) A minimum of three acres must be excluded from enrolled land when the land is
168.29improved with a structure that is not a minor, ancillary, and nonresidential structure.
168.30(e) If land does not meet the definition of forest land in section 290C.02, subdivision
168.316, because the land is:
168.32(1) enrolled in a state or federal conservation reserve or easement program under
168.33sections 103F.501 to 103F.531;
168.34(2) subject to the Minnesota agricultural property tax under section 273.111; or
169.1(3) subject to agricultural land preservation controls or restrictions as defined in
169.2section 40A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H, the
169.3entire tax parcel that contains the land is not eligible to be enrolled in the program.
169.4EFFECTIVE DATE.This section is effective for certifications and applications
169.5due in 2017 and thereafter.
169.6 Sec. 6. Minnesota Statutes 2014, section 290C.04, is amended to read:
169.7290C.04 APPLICATIONS.
169.8 (a) A landowner may apply to enroll forest land for the sustainable forest incentive
169.9program under this chapter. The claimant must complete, sign, and submit an application
169.10to the commissioner by September 30 in order for the land to become eligible beginning
169.11in the next year. The application shall be on a form prescribed by the
169.12commissioners of revenue and natural resources and must include the information the
169.13commissioner deems necessary. At a minimum, the application must show the following
169.14information for the land and the claimant: (i) the claimant's Social Security number or
169.15state or federal business tax registration number and date of birth, (ii) the claimant's
169.16address, (iii) the claimant's signature, (iv) the county's parcel identification numbers for
169.17the tax parcels that completely contain the claimant's forest land that is sought to be
169.18enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the approved
169.19plan writer's signature and identification number,
169.20commissioner, that the claimant has executed and acknowledged in the manner required
169.21by law for a deed, and recorded, a covenant that the land is not and shall not be developed
169.22in a manner inconsistent with the requirements and conditions of this chapter, and (viii) a
169.23registration number for the forest management plan, issued by the commissioner of natural
169.24resources. The covenant shall state in writing that the covenant is binding on the claimant
169.25and the claimant's successor or assignee, and that it runs with the land for a period of not
169.26less than eight years unless the claimant requests termination of the covenant after a
169.27reduction in payments due to changes in the payment formula under section 290C.07 or as
169.28a result of executive action, the amount of payment a claimant is eligible to receive under
169.29section 290C.07 is reduced or limited. The commissioner shall specify the form of the
169.30covenant and provide copies upon request. The covenant must include a legal description
169.31that encompasses all the forest land that the claimant wishes to enroll under this section or
169.32the certificate of title number for that land if it is registered land. The commissioner of
169.33natural resources shall record the area eligible for enrollment into the Sustainable Forest
169.34Incentive Act as electronic geospatial data, as defined in section 16E.30, subdivision 10.
170.1(b) The commissioner shall provide a copy of the application filed by the claimant
170.2and all supporting materials to the commissioner of natural resources within 15 days of
170.3receipt or by September 1, whichever is sooner. The commissioner of natural resources
170.4must notify the commissioner whether the applicant qualifies for enrollment within 30
170.5days of receipt, and if the applicant qualifies for enrollment, the commissioner of natural
170.6resources shall specify the number of qualifying acres per tax parcel.
170.7
170.8receipt of a completed application that either the land has or has not been approved for
170.9enrollment. A claimant whose application is denied may appeal the denial as provided
170.10in section
170.11
170.12final resolution of any appeal related to the denial, the commissioner shall execute and
170.13acknowledge a document releasing the land from the covenant required under this chapter.
170.14The document must be mailed to the claimant and is entitled to be recorded.
170.15
170.16private data as provided in section
170.17and date of birth data collected under this section are also private data on individuals or
170.18nonpublic data, as defined in section
170.19with county assessors for purposes of tax administration and with county treasurers for
170.20purposes of the revenue recapture under chapter 270A.
170.21EFFECTIVE DATE.This section is effective for certifications and applications
170.22due in 2017 and thereafter.
170.23 Sec. 7. Minnesota Statutes 2014, section 290C.05, is amended to read:
170.24290C.05 ANNUAL CERTIFICATION AND MONITORING.
170.25 (a) On or before
170.26original claimant has received an approved application, the commissioner shall send each
170.27claimant enrolled under the sustainable forest incentive program a certification form. For
170.28purposes of this section, the
170.29
170.30or the person designated by the owners in the case of multiple ownership. The claimant
170.31must sign and return the certification
170.32same year, and (1) attest that the requirements and conditions for continued enrollment
170.33in the program are currently being met, and
170.34
171.1manner determined by the commissioner of natural resources describing the management
171.2practices that have been carried out on the enrolled property during the prior year. If the
171.3claimant does not return an annual certification form by the due date, the provisions
171.4in section
171.5claimant meets program requirements.
171.6(b) The commissioner must provide the certification form and annual report described
171.7in paragraph (a), clause (2), to the commissioner of natural resources by August 1.
171.8(c) The commissioner of natural resources must conduct annual monitoring
171.9of a subset of claimants, excluding land also enrolled in a conservation easement
171.10program. Claimants will be selected for monitoring based on reported violations, annual
171.11certification, and random selections. Monitoring will be conducted on ten percent of
171.12claimants as of July 1 of each year. Monitoring may include, but is not limited to, a site
171.13visit by a Department of Natural Resources or contracted forester. The commissioner of
171.14natural resources must develop a monitoring form to record the monitoring data.
171.15EFFECTIVE DATE.Paragraphs (a) and (b) are effective for certifications and
171.16applications due in 2017 and thereafter. Paragraph (c) is effective July 1, 2019.
171.17 Sec. 8. Minnesota Statutes 2014, section 290C.055, is amended to read:
171.18290C.055 LENGTH OF COVENANT.
171.19(a)
171.20any land that is subject to a conservation easement funded under section 97A.056 or a
171.21comparable permanent easement conveyed to a governmental or nonprofit entity must
171.22enroll their land under a covenant with a minimum duration of eight years. All other
171.23claimants may choose to enroll their land under a covenant with a minimum duration of
171.24eight, 20, or 50 years. If
171.25program before it has been enrolled for
171.26covenant's duration, the covenant remains in effect for
171.27of the covenant from the date recorded.
171.28(b) If land that has been enrolled for
171.29covenant's minimum duration or more is removed from the program for any reason, there
171.30is a waiting period before the covenant terminates. The covenant terminates on January 1
171.31of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year minimum covenant,
171.32respectively, that begins after the date that:
171.33(1) the commissioner receives notification from the claimant that the claimant wishes
171.34to remove the land from the program under section
172.1(2) the date that the land is removed from the program under section
172.2(c) Notwithstanding the other provisions of this section, the covenant is terminated:
172.3(1) at the same time that the land is removed from the program due to acquisition of
172.4title or possession for a public purpose under section
172.5(2) at the request of the claimant
172.6changes in the payment formula under section
172.7action, the amount of payment a claimant is eligible to receive under section 290C.07 is
172.8reduced or limited.
172.9EFFECTIVE DATE.This section is effective for certifications and applications in
172.102017 and thereafter.
172.11 Sec. 9. Minnesota Statutes 2014, section 290C.07, is amended to read:
172.12290C.07 CALCULATION OF INCENTIVE PAYMENT.
172.13 (a) An approved claimant under the sustainable forest incentive program is eligible
172.14to receive an annual payment for each acre of enrolled land, excluding any acre improved
172.15with a paved trail under easement, lease, or terminable license to the state of Minnesota or
172.16a political subdivision. The payment shall equal
172.17
172.18on the land determined by using the previous year's statewide average total tax rate for all
172.19taxes levied within townships and unorganized territories, the estimated market value per
172.20acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for
172.21claimants enrolling land that is subject to a conservation easement funded under section
172.22
172.23entity before May 31, 2013, 25 percent; (2) for claimants enrolling land that is not subject
172.24to a conservation easement under an eight-year covenant, 65 percent; (3) for claimants
172.25enrolling land that is not subject to a conservation easement under a 20-year covenant, 90
172.26percent; and (4) for claimants enrolling land that is not subject to a conservation easement
172.27under a 50-year covenant, 115 percent.
172.28 (b) The calculated payment shall not be less than the payment received in 2016 and
172.29shall not increase or decrease by more than ten percent relative to the payment received
172.30for the previous year.
172.31(c) In addition to the payments provided under this section, a claimant enrolling
172.32more than 1,920 acres shall be allowed an additional payment per acre equal to the
172.33amount prescribed in paragraph (a), clause (1), for all acres of enrolled land on which
172.34public access is allowed, as required under section 290C.03, paragraph (a), clause (6),
173.1excluding any land subject to a conservation easement funded under section 97A.056, or a
173.2permanent easement conveyed to a governmental or nonprofit entity that is required to
173.3allow for public access under section 290C.03, paragraph (a), clause (6).
173.4EFFECTIVE DATE.This section is effective for calculations made in 2017 and
173.5thereafter.
173.6 Sec. 10. Minnesota Statutes 2014, section 290C.08, subdivision 1, is amended to read:
173.7 Subdivision 1. Annual payment. An incentive payment for each acre of enrolled
173.8land will be made annually to each claimant in the amount determined under section
173.10certify to the commissioner the eligibility of each claimant to receive a payment. The
173.11incentive payment shall be paid by the commissioner on or before October 1 each year
173.12based on the certifications due
173.13determined under section
173.14paid by the later of October 1 of the year the certification was due, or 45 days after the
173.15completed certification was returned or filed if the commissioner accepts a certification
173.16filed after
173.17EFFECTIVE DATE.This section is effective for certifications and applications
173.18due in 2017 and thereafter.
173.19 Sec. 11. Minnesota Statutes 2014, section 290C.10, is amended to read:
173.20290C.10 WITHDRAWAL PROCEDURES.
173.21
173.22forest incentive program for a minimum of
173.23of the covenant's minimum duration may notify the commissioner of the intent to
173.24terminate enrollment. Within 90 days of receipt of notice to terminate enrollment, the
173.25commissioner shall inform the claimant in writing, acknowledging receipt of this notice
173.26and indicating the effective date of termination from the sustainable forest incentive
173.27program. Termination of enrollment in the sustainable forest incentive program occurs on
173.28January 1 of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year respective
173.29minimum covenant that begins after receipt by the commissioner of the termination
173.30notice. After the commissioner issues an effective date of termination, a claimant wishing
173.31to continue the land's enrollment in the sustainable forest incentive program beyond the
173.32termination date must apply for enrollment as prescribed in section
173.33who withdraws a parcel of land from this program may not reenroll the parcel for a period
174.1of three years. Within 90 days after the termination date, the commissioner shall execute
174.2and acknowledge a document releasing the land from the covenant required under this
174.3chapter. The document must be mailed to the claimant and is entitled to be recorded.
174.4(b) Notwithstanding paragraph (a), on request of the claimant, the commissioner may
174.5allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the
174.6state of Minnesota, any local government unit, or any other entity which has the power of
174.7eminent domain acquires title or possession to the land for a public purpose
174.8
174.9paragraph, the commissioner shall execute and acknowledge a document releasing the
174.10land acquired by the state, local government unit, or other entity from the covenant.
174.11(c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner
174.12shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty
174.13when a government or nonprofit entity acquires a permanent conservation easement on the
174.14enrolled property and the conservation easement is at least as restrictive as the covenant
174.15required under section 290C.04. The commissioner of natural resources must notify the
174.16commissioner of lands acquired under this paragraph that are eligible for withdrawal.
174.17In the case of an eligible easement acquisition under this paragraph, the commissioner
174.18shall execute and acknowledge a document releasing the land subject to the easement
174.19from the covenant.
174.20(d) Notwithstanding paragraph (a), upon request of the claimant, the commissioner
174.21shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty for
174.22land that is subject to fee or easement acquisition or lease to the state of Minnesota or a
174.23political subdivision of the state for the public purpose of a paved trail. The commissioner
174.24of natural resources must notify the commissioner of lands acquired under this paragraph
174.25that are eligible for withdrawal. In the case of an eligible fee or easement acquisition or
174.26lease under this paragraph, the commissioner shall execute and acknowledge a document
174.27releasing the land subject to fee or easement acquisition or lease by the state or political
174.28subdivision of the state.
174.29(e) All other enrolled land must remain in the program.
174.30EFFECTIVE DATE.The amendments to paragraphs (c) and (d) are effective
174.31the day following final enactment. The amendments to paragraphs (a), (b), and (e) are
174.32effective for notifications made in 2017 and thereafter.
174.33 Sec. 12. [290C.101] TRANSFER OF OWNERSHIP.
174.34 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
174.35have the meanings provided.
175.1(b) "New owner" means a prospective purchaser or grantee.
175.2(c) "Owner" means a grantor or seller.
175.3 Subd. 2. Notification to commissioner. (a) An owner must notify the commissioner
175.4if the owner transfers any or all of the owner's land enrolled in the sustainable forest
175.5incentive program to one or more new owners within 60 days of the transfer of title to the
175.6property. The notification must include the legal descriptions of the transferred property,
175.7the tax parcel numbers, and the name and address of the new owner. If transfer of ownership
175.8is a result of the death of the claimant, the provisions of section 290C.12 shall apply.
175.9(b) Upon notification, the commissioner shall inform the new owner of the
175.10restrictions of the covenant required by section 290C.04 and the withdrawal procedures
175.11under section 290C.10. In order for the new owner to receive payments pursuant to this
175.12chapter, the new owner must file an application and register a new forest management plan
175.13with the commissioner of natural resources within two years from the date the title of the
175.14property was transferred to remain eligible.
175.15 Subd. 3. Termination of enrollment. The commissioner will terminate enrollment
175.16according to the procedure in section 290C.10 for failure of the new owner to register a
175.17forest management plan within the time period in subdivision 2, paragraph (b).
175.18EFFECTIVE DATE.This section is effective July 1, 2016.
175.19 Sec. 13. Minnesota Statutes 2014, section 290C.11, is amended to read:
175.20290C.11 PENALTIES FOR REMOVAL.
175.21 (a) If the commissioner determines that land enrolled in the sustainable forest
175.22incentive program is in violation of the conditions for enrollment as specified in section
175.24is in violation of the conditions for enrollment, the commissioner shall notify the
175.25current owner of the land of the intent to remove
175.26where the violation has occurred from the sustainable forest incentive program. The
175.27penalties described under paragraph (c) apply. The
175.28appeal this determination under the provisions of section
175.29 (b) If the commissioner determines the land is to be removed from the sustainable
175.30forest incentive program due to the construction or addition of an improvement to the
175.31property, the
175.32to the commissioner in the amount equal to: (1) the payments
175.33the enrolled tax parcel under this chapter for the previous four-year period in the case of
175.34an eight-year minimum covenant, ten-year period in the case of a 20-year minimum
176.1covenant, or 25-year period in the case of a 50-year minimum covenant, plus interest; and
176.2(2) 25 percent of the estimated market value of the property as reclassified under section
176.3273.13 due to the structure being on the tax parcel, as determined by the assessor.
176.4(c) If the commissioner of natural resources determines that the land is used for
176.5purposes other than forestry purposes, the commissioner of natural resources shall notify
176.6the commissioner of revenue, who shall notify the current owner of the tax parcel that is in
176.7violation that the current owner is liable to the commissioner in an amount equal to: (1) 30
176.8percent of the estimated market value as property reclassified under section 273.13, due
176.9to the change in use, as determined by the assessor; and (2) the payments issued related
176.10to the enrolled tax parcel under this chapter for the previous four-year period in the case
176.11of an eight-year covenant, ten-year period in the case of a 20-year covenant, or 25-year
176.12period in the case of a 50-year covenant, plus interest.
176.13 (d) The claimant has 90 days to satisfy the payment for removal of land from the
176.14sustainable forest incentive program under this section. If the penalty is not paid within
176.15the 90-day period under this paragraph, the commissioner shall certify the amount to the
176.16county auditor for collection as a part of the general ad valorem real property taxes on the
176.17land in the following taxes payable year.
176.18EFFECTIVE DATE.This section is effective the day following final enactment.
176.19 Sec. 14. Minnesota Statutes 2014, section 290C.13, subdivision 6, is amended to read:
176.20 Subd. 6. Determination of appeal. On the basis of applicable law and available
176.21information, the commissioner shall determine the validity, if any, in whole or in part,
176.22of the appeal and notify the claimant of the decision. This notice must be in writing
176.23and contain the basis for the determination. The commissioner shall consult with the
176.24commissioner of natural resources when an appeal relates to the use of the property for
176.25forestry or nonforestry purposes and for appeals related to forest management plans.
176.26EFFECTIVE DATE.This section is effective the day following final enactment.
176.27 Sec. 15. SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION
176.28PROVISION.
176.29(a) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the
176.30owner of enrolled lands may elect through May 15, 2018, and without penalty, to change
176.31the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055. The
176.32owner of enrolled land must provide notice to the Department of Revenue of its intent to
176.33change the length of its covenant.
177.1(b) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the
177.2owner of enrolled land must comply with the changes made in the act by certifications due
177.3in 2018, as required under Minnesota Statutes, section 290C.05.
177.4EFFECTIVE DATE.This section is effective the day following final enactment.
177.5 Sec. 16. ADMINISTRATIVE APPROPRIATION.
177.6$600,000 in fiscal year 2017 is appropriated from the general fund to the
177.7commissioner of natural resources for administering this article. The funding base for
177.8administering this article in fiscal year 2018 and thereafter is $600,000.
177.9EFFECTIVE DATE.This section is effective the day following final enactment.
177.10 Sec. 17. REPEALER.
177.11Minnesota Statutes 2014, section 290C.02, subdivisions 5 and 9, are repealed.
177.12EFFECTIVE DATE.This section is effective the day following final enactment.
177.15 Section 1. Minnesota Statutes 2015 Supplement, section 16A.152, subdivision 2,
177.16is amended to read:
177.17 Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
177.18fund revenues and expenditures, the commissioner of management and budget determines
177.19that there will be a positive unrestricted budgetary general fund balance at the close of
177.20the biennium, the commissioner of management and budget must allocate money to the
177.21following accounts and purposes in priority order:
177.22 (1) the cash flow account established in subdivision 1 until that account reaches
177.23$350,000,000;
177.24 (2) the budget reserve account established in subdivision 1a until that account
177.25reaches
177.26 (3) the amount necessary to increase the aid payment schedule for school district
177.27aids and credits payments in section
177.28nearest tenth of a percent without exceeding the amount available and with any remaining
177.29funds deposited in the budget reserve; and
177.30 (4) the amount necessary to restore all or a portion of the net aid reductions under
177.31section
178.1
178.2
178.3
178.4
178.5
178.6
178.7 (b) The amounts necessary to meet the requirements of this section are appropriated
178.8from the general fund within two weeks after the forecast is released or, in the case of
178.9transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
178.10schedules otherwise established in statute.
178.11 (c) The commissioner of management and budget shall certify the total dollar
178.12amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
178.13education. The commissioner of education shall increase the aid payment percentage and
178.14reduce the property tax shift percentage by these amounts and apply those reductions to
178.15the current fiscal year and thereafter.
178.16EFFECTIVE DATE.This section is effective July 1, 2016.
178.17 Sec. 2. [116J.952] NEW MARKETS GRANT PROGRAM.
178.18 Subdivision 1. Grant program established. The commissioner shall award new
178.19markets grants for qualified low-income community investments as specified under this
178.20section. The commissioner shall adopt rules to establish criteria for determining grant
178.21eligibility.
178.22 Subd. 2. Definitions. (a) For purposes of this section, the following terms have
178.23the meanings given.
178.24(b) "Applicant" means a qualified community development entity as defined in
178.25paragraph (h).
178.26(c) "Commissioner" means the commissioner of employment and economic
178.27development.
178.28(d) "Greater Minnesota" means the area of the state that excludes the metropolitan
178.29area, as defined in section 473.121, subdivision 2.
178.30(e) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.
178.31(f) "Qualified active low-income community business" has the meaning given in
178.32section 45D of the Internal Revenue Code. The term does not include:
178.33(1) any trade or business engaged in insurance, banking, lending, lobbying, political
178.34consulting, or leisure; or
179.1(2) any trade or business activity consisting of the operation of any private or
179.2commercial golf course, country club, suntan facility, hot tub facility, massage parlor, race
179.3track, or other facility used for gambling, or any store the principal business of which is
179.4the sale of alcoholic beverages for consumption off premises.
179.5 (g) "Low-income communities" as defined in section 45D of the Internal Revenue
179.6Code and applied to any term or requirement used in this section or an incorporated
179.7provision of federal law includes the area of any home rule charter or statutory city that:
179.8 (1) is located in greater Minnesota;
179.9 (2) has a population, as defined in section 477A.011, subdivision 3, of 500 or
179.10more; and
179.11 (3) has net tax capacity of property, classified as class 3 under section 273.13, of
179.12less than $500 per capita for property taxes assessed in 2015, payable in 2016, including
179.13the city's distribution net tax capacity and excluding its contribution net tax capacity
179.14under chapter 276A.
179.15(h) "Qualified community development entity" has the meaning given in section
179.1645D of the Internal Revenue Code, provided that the entity has direct lending experience
179.17serving businesses in disadvantaged communities in the state and a primary mission of
179.18economic development.
179.19(i) "Qualified low-income community investment" means any capital or equity
179.20investment in, or loan to, any qualified active low-income community business.
179.21 Subd. 3. Grant awards. The commissioner shall award grants to qualified
179.22community development entities based on a competitive review of applications received
179.23by the commissioner using criteria established in subdivision 4.
179.24 Subd. 4. Application. (a) The commissioner shall develop an application form
179.25requiring information necessary to evaluate the benefits to Minnesota from awarding
179.26the grants.
179.27(b) Prior to awarding grants to an applicant under this subdivision, the commissioner
179.28shall consider the following:
179.29(1) whether the qualified community development entity has demonstrated
179.30experience providing capital or technical assistance to disadvantaged businesses or
179.31communities in the state;
179.32(2) the extent to which an applicant demonstrates direct experience in asset and risk
179.33management and in fulfilling government compliance requirements;
179.34(3) the extent to which an applicant demonstrates a capitalization strategy that
179.35ensures that the economic benefit of the grant allocation remains in the state;
180.1(4) the extent to which the applicant establishes standards for wages and benefits
180.2exceeding federal poverty guidelines and includes a means by which to monitor and
180.3measure ongoing compliance with those standards;
180.4(5) the financial contributions expected to be made to the project from nonstate
180.5sources; and
180.6(6) any other criteria the commissioner deems necessary.
180.7 Subd. 5. Annual reporting by community development entities. A community
180.8development entity that has been awarded a grant must submit an annual report to the
180.9commissioner within 180 days after the end of the fiscal year. The report must include
180.10information on investments made in the preceding year, including but not limited to the
180.11following:
180.12(1) the types of industries, identified by the North American Industry Classification
180.13System Code, in which a qualified low-income community investment was made;
180.14(2) the names of the counties in which the qualified active low-income community
180.15businesses are located which received qualified low-income community investments;
180.16(3) the number of jobs created and retained by qualified active low-income
180.17community businesses receiving qualified low-income community investments, including
180.18verification that the average wages and benefits paid to full-time employees, based on an
180.19hourly wage for a 40-hour work week, meet or exceed 105 percent of the federal poverty
180.20income guidelines for a family of four; and
180.21(4) other information and documentation required by the commissioner to verify
180.22continued certification as a qualified community development entity under United States
180.23Code, title 26, section 45D.
180.24 Subd. 6. Application fees; fund created. The qualified community development
180.25entity must submit a nonrefundable application fee at the time the application is submitted
180.26equal to the amount published in the Minnesota new markets grant program application.
180.27The commissioner may allow up to 25 percent of the fee to be submitted up to 180 days
180.28following the grant award and up to 25 percent of the fee to be submitted up to 270 days
180.29following the grant award. Application fees are deposited in the new markets grant
180.30program administration account in the special revenue fund.
180.31 Subd. 7. Administrative fees. Upon the issuance of a qualified low-income
180.32community investment by a qualified community development entity, an administrative
180.33fee in an amount determined by the commissioner and published in the grant agreement
180.34must be deposited in the new markets grant program administration account in the special
180.35revenue fund.
181.1 Subd. 8. Administrative expenses. Amounts in the new markets grant program
181.2administration account are appropriated annually to the commissioner for administrative
181.3expenses related to administering the new markets grant program in this section.
181.4 Subd. 9. Annual report. The commissioner shall annually by January 15, 2018
181.5through 2023, report to the chairs and ranking minority members of the legislative
181.6committees on economic development on the implementation of the grant program,
181.7including an evaluation of the success and economic impact of the program in the state.
181.8The report must include:
181.9(1) the number of women-owned and minority-owned businesses assisted by the
181.10grants;
181.11(2) the number of greater Minnesota-located businesses assisted by the grants and
181.12the amount of that assistance;
181.13(3) the number of metropolitan area-located businesses assisted by the grants and the
181.14amount of that assistance;
181.15(4) the number of jobs created by the grants including the number of women and
181.16minorities obtaining jobs; and
181.17(5) the number of jobs created by the grants located in greater Minnesota and in the
181.18metropolitan area.
181.19 Subd. 10. Expiration. This section expires the earlier of July 1, 2024, or when the
181.20last of the grant funds have been awarded. The commissioner must issue the rules for the
181.21implementation of this section to allow commencement of grant awards by January 1, 2017.
181.22EFFECTIVE DATE.This section is effective the day following final enactment.
181.23 Sec. 3. [270C.22] TAX TIME SAVINGS GRANT PROGRAM.
181.24 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
181.25have the meanings given.
181.26(b) "Financial capability services" means any of the following:
181.27(1) assistance with opening a savings or transactional account that meets the Federal
181.28Deposit Insurance Corporation's model safe accounts template standards;
181.29(2) assistance with depositing all or part of a tax refund into a savings or transactional
181.30account;
181.31(3) assistance with obtaining and reviewing a consumer report or credit score, as
181.32those terms are defined in United States Code, title 15, section 1681a;
181.33(4) assistance with obtaining and reviewing a banking history report;
181.34(5) financial coaching, or referral to financial coaching services, as provided in
181.35section 256E.35, subdivision 4a;
182.1(6) National Foundation for Credit Counseling certified consumer credit and debt
182.2counseling or referral to these services;
182.3(7) enrollment in a matched or incentivized savings program, including the provision
182.4of matching or incentive funds;
182.5(8) assistance with purchasing federal retirement savings bonds, as described in
182.6Code of Federal Regulations, title 31, part 347, or referral to a certified financial planner,
182.7registered investment adviser, licensed insurance producer or agent, or a registered
182.8securities broker-dealer representative for private sector retirement options; or
182.9(9) assistance with purchasing a Series I United States Savings Bond with all or
182.10part of a tax refund.
182.11(c) "Transactional account" means a traditional demand deposit account or a general
182.12purpose reloadable prepaid card offered by a bank or credit union.
182.13(d) "TCE" means the Tax Counseling for the Elderly program established by the
182.14Internal Revenue Service.
182.15(e) "VITA" means the Volunteer Income Tax Assistance program established by the
182.16Internal Revenue Service.
182.17 Subd. 2. Creation. The commissioner of revenue shall establish a tax time
182.18savings grant program to make grants to one or more nonprofit organizations to fund the
182.19integration of financial capability services into the delivery of taxpayer assistance services
182.20funded by grants under section 270C.21.
182.21 Subd. 3. Qualified applicant. To be eligible to receive a grant under the tax time
182.22savings grant program, an applicant must:
182.23(1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered
182.24with the Internal Revenue Service as part of either the VITA or TCE programs; and
182.25(2) commit to dedicate at least one staff or volunteer position to coordinate financial
182.26capability services at a VITA or TCE program site and to offer VITA or TCE program
182.27participants free assistance with the initiation through completion of:
182.28(i) opening a savings and a transactional account that meet the Federal Deposit
182.29Insurance Corporation's model safe accounts template standards;
182.30(ii) depositing all or part of a tax refund into a savings or transactional account; and
182.31(iii) purchasing a Series I United States Savings Bond with all or part of a tax refund.
182.32 Subd. 4. Conflict of interest. (a) No applicant may receive direct compensation
182.33from a bank, credit union, other financial services provider, or vendor in exchange for the
182.34applicant offering to program participants the products or services of that bank, credit
182.35union, other financial services provider, or vendor.
183.1(b) No applicant may receive funding from a bank, credit union, other financial
183.2services provider, or vendor that is contingent on the applicant offering products or
183.3services of that bank, credit union, other financial services provider, or vendor to program
183.4participants.
183.5(c) An applicant may receive funding from a bank, credit union, other financial
183.6services provider, or vendor that is not in exchange for or contingent upon the applicant
183.7offering products or services of that bank, credit union, other financial services provider,
183.8or vendor to program participants.
183.9 Subd. 5. Permitted use of grant funds. (a) A grant recipient may use grant funds
183.10to dedicate a staff or volunteer position to coordinate financial capability services at a
183.11VITA or TCE site and to offer VITA or TCE program participants free assistance with the
183.12initiation through completion of:
183.13(1) opening a savings and a transactional account that meet the Federal Deposit
183.14Insurance Corporation's model safe accounts template standards;
183.15(2) depositing all or part of a tax refund into a savings or transactional account; and
183.16(3) purchasing a Series I United States Savings Bond with all or part of a tax refund.
183.17(b) A grant recipient who offers all of the financial capability services enumerated
183.18in paragraph (a) may also use grant funds to provide one or more additional financial
183.19capability services to VITA or TCE program participants at no cost to the participant.
183.20 Sec. 4. Minnesota Statutes 2014, section 271.08, subdivision 1, is amended to read:
183.21 Subdivision 1. Written order. The Tax Court, except in Small Claims Division,
183.22shall determine every appeal by written order containing findings of fact and the decision
183.23of the tax court. A memorandum of the grounds of the decision shall be appended. Notice
183.24of the entry of the order and of the substance of the decision shall be mailed to all parties.
183.25A motion for rehearing, which includes a motion for amended findings of fact, conclusions
183.26of law, or a new trial, must be served by the moving party within
183.27of the notice by the court as specified in this subdivision, and the motion must be heard
183.28within
183.29the
183.30EFFECTIVE DATE.This section is effective the day following final enactment.
183.31 Sec. 5. Minnesota Statutes 2014, section 271.21, subdivision 2, is amended to read:
183.32 Subd. 2. Jurisdiction. At the election of the taxpayer, the Small Claims Division
183.33shall have jurisdiction only in the following matters:
183.34(a) cases involving valuation, assessment, or taxation of real or personal property, if:
184.1(i) the issue is a denial of a current year application for the homestead classification
184.2for the taxpayer's property;
184.3(ii) only one parcel is included in the petition, the entire parcel is classified as
184.4homestead class 1a or 1b under section
184.5one dwelling unit;
184.6(iii) the entire property is classified as agricultural homestead class 2a or 1b under
184.7section
184.8(iv) the assessor's estimated market value of the property included in the petition
184.9is less than $300,000; or
184.10(b) any case not involving valuation, assessment, or taxation of real and personal
184.11property in which the amount in controversy does not exceed
184.12penalty and interest.
184.13EFFECTIVE DATE.This section is effective the day following final enactment.
184.14 Sec. 6. Minnesota Statutes 2014, section 289A.60, is amended by adding a subdivision
184.15to read:
184.16 Subd. 32. Sales suppression. (a) A person who:
184.17(1) sells;
184.18(2) transfers;
184.19(3) develops;
184.20(4) manufactures; or
184.21(5) possesses with the intent to sell or transfer
184.22an automated sales suppression device, zapper, phantom-ware, or similar device capable
184.23of being used to commit tax fraud or suppress sales is liable for a civil penalty calculated
184.24under paragraph (b).
184.25(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total
184.26amount of all taxes and penalties due that are attributable to the use of any automated
184.27sales suppression device, zapper, phantom-ware, or similar device facilitated by the sale,
184.28transfer, development, or manufacture of the automated sales suppression device, zapper,
184.29phantom-ware, or similar device by the person.
184.30(c) The definitions in section 609.858 apply to this subdivision.
184.31EFFECTIVE DATE.This section is effective for activities enumerated in
184.32paragraph (a) that occur after July 1, 2016.
184.33 Sec. 7. Minnesota Statutes 2014, section 290A.03, subdivision 13, is amended to read:
185.1 Subd. 13. Property taxes payable. "Property taxes payable" means the property tax
185.2exclusive of special assessments, penalties, and interest payable on a claimant's homestead
185.3after deductions made under sections
185.4and any other state paid property tax credits in any calendar year, and after any refund
185.5claimed and allowable under section
185.6the year that the property tax is payable. In the case of a claimant who makes ground
185.7lease payments, "property taxes payable" includes the amount of the payments directly
185.8attributable to the property taxes assessed against the parcel on which the house is located.
185.9No apportionment or reduction of the "property taxes payable" shall be required for the
185.10use of a portion of the claimant's homestead for a business purpose if the claimant does
185.11not deduct any business depreciation expenses for the use of a portion of the homestead,
185.12or does not deduct expenses under section 280A of the Internal Revenue Code for a
185.13business operated in the home, in the determination of federal adjusted gross income. For
185.14homesteads which are manufactured homes as defined in section
185.15and for homesteads which are park trailers taxed as manufactured homes under section
185.17rent paid in the preceding year for the site on which the homestead is located. When
185.18a homestead is owned by two or more persons as joint tenants or tenants in common,
185.19such tenants shall determine between them which tenant may claim the property taxes
185.20payable on the homestead. If they are unable to agree, the matter shall be referred to the
185.21commissioner of revenue whose decision shall be final. Property taxes are considered
185.22payable in the year prescribed by law for payment of the taxes.
185.23In the case of a claim relating to "property taxes payable," the claimant must have
185.24owned and occupied the homestead on January 2 of the year in which the tax is payable
185.25and (i) the property must have been classified as homestead property pursuant to section
185.27payable" relate; or (ii) the claimant must provide documentation from the local assessor
185.28that application for homestead classification has been made on or before December 15
185.29of the year in which the "property taxes payable" were payable and that the assessor has
185.30approved the application.
185.31EFFECTIVE DATE.This section is effective for refunds based on rent paid after
185.32December 31, 2014, and property taxes payable after December 31, 2015.
185.33 Sec. 8. Minnesota Statutes 2014, section 469.169, is amended by adding a subdivision
185.34to read:
186.1 Subd. 20. Additional allocation; 2016. In addition to the tax reductions in
186.2subdivisions 12 to 19, $3,000,000 is allocated for tax reductions to border city enterprise
186.3zones in cities located on the western border of the state. The commissioner shall allocate
186.4this amount among cities on a per capita basis. Allocations under this subdivision may
186.5be used for tax reductions under sections 469.171, 469.1732, and 469.1734, or for other
186.6offsets of taxes imposed on or remitted by businesses located in the enterprise zone,
186.7but only if the municipality determines that the granting of the tax reduction or offset is
186.8necessary to retain a business within or attract a business to the zone.
186.9EFFECTIVE DATE.This section is effective July 1, 2016.
186.10 Sec. 9. Minnesota Statutes 2014, section 609.5316, subdivision 3, is amended to read:
186.11 Subd. 3. Weapons, telephone cloning paraphernalia, automated sales
186.12suppression devices, and bullet-resistant vests. Weapons used are contraband and
186.13must be summarily forfeited to the appropriate agency upon conviction of the weapon's
186.14owner or possessor for a controlled substance crime; for any offense of this chapter
186.15or chapter 624, or for a violation of an order for protection under section
186.16subdivision 14
186.17during the commission or attempted commission of a crime are contraband and must be
186.18summarily forfeited to the appropriate agency upon conviction of the owner or possessor
186.19for a controlled substance crime or for any offense of this chapter. Telephone cloning
186.20paraphernalia used in a violation of section
186.21devices, phantom-ware, and other devices containing an automated sales suppression or
186.22phantom-ware device or software used in violation of section 609.858, are contraband and
186.23must be summarily forfeited to the appropriate agency upon a conviction.
186.24 Sec. 10. [609.858] USE OF AUTOMATED SALES SUPPRESSION DEVICES.
186.25 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
186.26have the meanings given.
186.27(b) "Automated sales suppression device" or "zapper" means a software program,
186.28carried on any tangible medium, or accessed through any other means, that falsifies the
186.29electronic records of electronic cash registers and other point-of-sale systems including,
186.30but not limited to, transaction data and transaction reports.
186.31(c) "Electronic cash register" means a device that keeps a register or supporting
186.32documents through the means of an electronic device or computer system designed to
186.33record transaction data for the purpose of computing, compiling, or processing retail
186.34sales transaction data in whatever manner.
187.1(d) "Phantom-ware" means hidden preinstalled, or later-installed programming
187.2option embedded in the operating system of an electronic cash register or hardwired
187.3into the electronic cash register that can be used to create a virtual second electronic
187.4cash register or may eliminate or manipulate transaction records that may or may not be
187.5preserved in digital formats to represent the true or manipulated record of transactions in
187.6the electronic cash register.
187.7(e) "Transaction data" includes items purchased by a customer, the price of each
187.8item, the taxability determination for each item, a segregated tax amount for each of
187.9the taxed items, the date and time of the purchase, the name, address and identification
187.10number of the vendor, and the receipt or invoice number of the transaction.
187.11(f) "Transaction report" means a report documenting, but not limited to, the sales,
187.12taxes collected, media totals, and discount voids at an electronic cash register that is
187.13printed on cash register tape at the end of a day or shift, or a report documenting every
187.14action at an electronic cash register that is stored electronically.
187.15 Subd. 2. Felony. A person who sells, purchases, installs, transfers, possesses,
187.16develops, manufactures, accesses, or uses an automated sales suppression device, zapper,
187.17phantom-ware, or similar device knowing that the device or phantom-ware is capable
187.18of being used to commit tax fraud or suppress sales is guilty of a felony and may be
187.19sentenced to imprisonment for not more than five years or to a payment of a fine of not
187.20more than $10,000, or both.
187.21 Subd. 3. Forfeiture. An automated sales suppression device, zapper, phantom-ware,
187.22and any other device containing an automated sales suppression, zapper, or phantom-ware
187.23device or software is contraband and subject to forfeiture under section 609.5316.
187.24EFFECTIVE DATE.This section is effective August 1, 2015, and applies to crimes
187.25committed on or after that date.
187.26 Sec. 11. APPROPRIATIONS.
187.27 Subdivision 1. New markets grant program. $30,000,000 in fiscal year 2017 is
187.28appropriated from the general fund to the commissioner of employment and economic
187.29development for the new markets grant program under Minnesota Statutes, section
187.30116J.952. This appropriation is a onetime appropriation and is available until June 30,
187.312024. The commissioner may award grants of up to $10,000,000 per fiscal year.
187.32 Subd. 2. Department of Revenue. $5,000,000 in fiscal year 2017 is appropriated
187.33from the general fund to the commissioner of revenue for administering this act. The
187.34funding base for this appropriation in fiscal year 2018 and thereafter is $2,000,000.
188.1 Subd. 3. Tax time savings grant program. (a) $400,000 is appropriated in fiscal
188.2year 2017 from the general fund to the commissioner of revenue to make grants under the
188.3tax time savings grant program under Minnesota Statutes, section 270C.22. Of this amount,
188.4up to five percent may be used for the administration of the tax time savings grant program.
188.5(b) The base funding for the grant program authorized under paragraph (a) is
188.6$400,000 each year.
188.7 Subd. 4. Taxpayer assistance grants. (a) $400,000 is appropriated in fiscal year
188.82017 from the general fund to the commissioner of revenue for the provision of taxpayer
188.9assistance grants under Minnesota Statutes, section 270C.21, in addition to the current
188.10base funding for the program. Of the amount appropriated under this paragraph and the
188.11current base funding for the provision of taxpayer assistance grants, up to five percent may
188.12be used for the administration of the taxpayer assistance grants program.
188.13(b) Beginning in fiscal year 2018, the total base funding for the program under
188.14paragraph (a) is $800,000 each year. This amount includes the base funding of $400,000
188.15each year established in Laws 2015, chapter 77, article 1, section 14, subdivision 2,
188.16paragraph (a).
188.17 Subd. 5. Local government grants. (a) The following amounts are appropriated in
188.18fiscal year 2016 only from the general fund to the commissioner of revenue for grants that
188.19shall be paid by June 30, 2016, and allocated as follows:
188.20(1) $1,200,000 to the city of Madelia;
188.21(2) $465,000 to the city of Hibbing; and
188.22(3) $52,288 to Stearns County.
188.23(b) The following amounts are appropriated in fiscal year 2017 only from the
188.24general fund to the commissioner of revenue for grants that shall be paid by June 30,
188.252017, and allocated as follows:
188.26(1) $2,000,000 to Mahnomen County. Of this amount, $1,000,000 must be used
188.27by the county for the Mahnomen Health Center, and $1,000,000 must be paid from the
188.28county to the White Earth Band of Ojibwe;
188.29(2) $1,130,000 to Hennepin County. Of this amount, $730,000 must be used for the
188.30North Branch Library EMERGE Career and Technology Center, and $400,000 must be
188.31used for the Cedar Riverside Opportunity Center;
188.32(3) $1,000,000 to the city of Mahnomen; and
188.33(4) $150,000 to the city of Lilydale.
188.34(c) All of the appropriations under this subdivision are onetime and are not added
188.35to the base budget.
189.1EFFECTIVE DATE.This section is effective the day following final enactment.
189.5 Section 1. Minnesota Statutes 2014, section 289A.08, subdivision 11, is amended to
189.6read:
189.7 Subd. 11. Information included in income tax return. (a) The return must state:
189.8 (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the
189.9address of the taxpayer in the same name or names and same address as the taxpayer has
189.10used in making the taxpayer's income tax return to the United States;
189.11 (2) the date or dates of birth of the taxpayer or taxpayers;
189.12 (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security
189.13number has been issued by the United States with respect to the taxpayers; and
189.14 (4) the amount of the taxable income of the taxpayer as it appears on the federal
189.15return for the taxable year to which the Minnesota state return applies.
189.16 (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return
189.17a copy of the federal income tax return that the taxpayer has filed or is about to file for
189.18the period
189.19
189.20EFFECTIVE DATE.This section is effective the day following final enactment.
189.21 Sec. 2. Minnesota Statutes 2014, section 289A.08, subdivision 16, is amended to read:
189.22 Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee
189.23imposed. (a) A "tax refund or return preparer," as defined in section
189.24
189.25Internal Revenue Code, and who reasonably expects to prepare more than ten Minnesota
189.26individual income, corporate franchise, S corporation, partnership, or fiduciary income tax
189.27returns for the prior
189.28franchise, S corporation, partnership, or fiduciary income tax returns prepared for that
189.29
189.30(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return
189.31that the taxpayer did not want the return filed by electronic means.
189.32(c) For each return that is not filed electronically by a tax refund or return preparer
189.33under this subdivision, including returns filed under paragraph (b), a paper filing fee
189.34of $5 is imposed upon the preparer. The fee is collected from the preparer in the same
190.1manner as income tax. The fee does not apply to returns that the commissioner requires
190.2to be filed in paper form.
190.3EFFECTIVE DATE.This section is effective for taxable years beginning after
190.4December 31, 2015.
190.5 Sec. 3. Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read:
190.6 Subd. 2. Withholding statement. (a) A person required to deduct and withhold
190.7from an employee a tax under section
190.82
190.9subdivision 2a
190.102
190.11had claimed no more than one withholding exemption, or who paid wages or made
190.12payments not subject to withholding under section
190.13subdivision 2
190.14or who has entered into a voluntary withholding agreement with a payee under section
190.16respect to the remuneration paid by the person to the employee or person receiving royalty
190.17payments during the calendar year, on or before January 31 of the succeeding year, or, if
190.18employment is terminated before the close of the calendar year, within 30 days after the
190.19date of receipt of a written request from the employee if the 30-day period ends before
190.20January 31, a written statement showing the following:
190.21 (1) name of the person;
190.22 (2) the name of the employee or payee and the employee's or payee's Social Security
190.23account number;
190.24 (3) the total amount of wages as that term is defined in section
190.251
190.27Internal Revenue Code; and the amount of royalties subject to withholding under section
190.29 (4) the total amount deducted and withheld as tax under section
190.302a
190.31 (b) The statement required to be furnished by paragraph (a) with respect to any
190.32remuneration must be furnished at those times, must contain the information required, and
190.33must be in the form the commissioner prescribes.
191.1 (c) The commissioner may prescribe rules providing for reasonable extensions of
191.2time, not in excess of 30 days, to employers or payers required to give the statements to
191.3their employees or payees under this subdivision.
191.4 (d) A duplicate of any statement made under this subdivision and in accordance
191.5with rules prescribed by the commissioner
191.6
191.7
191.8commissioner on or before
191.9made.
191.10 (e) If an employer cancels the employer's Minnesota withholding account number
191.11required by section
191.12must be filed with the commissioner within 30 days of the end of the quarter in which
191.13the employer cancels its account number.
191.14 (f) The employer must submit the statements required to be sent to the commissioner
191.15
191.16
191.17
191.18
191.19
191.20
191.21
191.22
191.23prescribe the content, format, and manner of the statement pursuant to section 270C.30.
191.24 (g) A "third-party bulk filer" as defined in section
191.25(a), clause (2), must submit the returns required by this subdivision and subdivision 1,
191.26paragraph (a), with the commissioner by electronic means.
191.27EFFECTIVE DATE.This section is effective for statements required to be sent
191.28to the commissioner after December 31, 2016, except that the date change in paragraph
191.29(d) is effective for wages paid after December 31, 2015.
191.30 Sec. 4. Minnesota Statutes 2014, section 289A.12, subdivision 14, is amended to read:
191.31 Subd. 14.
191.32exempt-interest dividends. (a) A regulated investment company paying $10 or more in
191.33exempt-interest dividends to an individual who is a resident of Minnesota, or any person
191.34receiving $10 or more of exempt interest or exempt-interest dividends and paying as
191.35nominee to an individual who is a resident of Minnesota, must make a return indicating
192.1the amount of the exempt interest or exempt-interest dividends, the name, address, and
192.2Social Security number of the recipient, and any other information that the commissioner
192.3specifies. The return must be provided to the
192.4year following the year of the payment. The return provided to the
192.5must include a clear statement, in the form prescribed by the commissioner, that the
192.6exempt interest or exempt-interest dividends must be included in the computation of
192.7Minnesota taxable income. By June 1 of each year, the
192.8payor must file a copy of the return with the commissioner.
192.9 (b) For purposes of this subdivision, the following definitions apply.
192.10 (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in
192.11section 852(b)(5) of the Internal Revenue Code, but does not include the portion of
192.12exempt-interest dividends that are not required to be added to federal taxable income
192.13under section
192.14 (2) "Regulated investment company" means regulated investment company as
192.15defined in section 851(a) of the Internal Revenue Code or a fund of the regulated
192.16investment company as defined in section 851(g) of the Internal Revenue Code.
192.17 (3) "Exempt interest" means income on obligations of any state other than
192.18Minnesota, or a political or governmental subdivision, municipality, or governmental
192.19agency or instrumentality of any state other than Minnesota, and exempt from federal
192.20income taxes under the Internal Revenue Code or any other federal statute.
192.21EFFECTIVE DATE.This section is effective for reports required to be filed after
192.22December 31, 2016.
192.23 Sec. 5. Minnesota Statutes 2014, section 289A.18, is amended by adding a subdivision
192.24to read:
192.25 Subd. 2a. Annual withholding returns; eligible employers. (a) An employer who
192.26deducts and withholds an amount required to be withheld by section 290.92 may file an
192.27annual return and make an annual payment of the amount required to be deducted and
192.28withheld for that calendar year if the employer has received a notification under paragraph
192.29(b). The ability to elect to file an annual return continues through the year following the
192.30year where an employer is required to deduct and withhold more than $500.
192.31(b) The commissioner is authorized to determine which employers are eligible to
192.32file an annual return and to notify employers who newly qualify to file an annual return
192.33because the amount an employer is required to deduct and withhold for that calendar year
192.34is $500 or less based on the most recent period of four consecutive quarters for which the
192.35commissioner has compiled data on that employer's withholding tax for that period. At the
193.1time of notification, eligible employers may still decide to file returns and make deposits
193.2quarterly. An employer who decides to file returns and make deposits quarterly is required
193.3to make all returns and deposits required by this chapter and, notwithstanding paragraph
193.4(a), is subject to all applicable penalties for failing to do so.
193.5(c) If, at the end of any calendar month other than the last month of the calendar
193.6year, the aggregate amount of undeposited tax withheld by an employer who has elected to
193.7file an annual return exceeds $500, the employer must deposit the aggregate amount with
193.8the commissioner within 30 days of the end of the calendar month.
193.9(d) If an employer who has elected to file an annual return ceases to pay wages
193.10for which withholding is required, the employer must file a final return and deposit any
193.11undeposited tax within 30 days of the end of the calendar month following the month in
193.12which the employer ceased paying wages.
193.13(e) An employer not subject to paragraph (c) or (d) who elects to file an annual
193.14return must file the return and pay the tax not previously deposited before February 1 of
193.15the year following the year in which the tax was withheld.
193.16(f) A notification to an employer regarding eligibility to file an annual return under
193.17Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).
193.18EFFECTIVE DATE.This section is effective for taxable years beginning after
193.19December 31, 2015.
193.20 Sec. 6. Minnesota Statutes 2014, section 289A.20, subdivision 2, is amended to read:
193.21 Subd. 2. Withholding from wages, entertainer withholding, withholding
193.22from payments to out-of-state contractors, and withholding by partnerships, small
193.23business corporations, trusts. (a) Except as provided in section 289A.18, subdivision 2a,
193.24a tax required to be deducted and withheld during the quarterly period must be paid on
193.25or before the last day of the month following the close of the quarterly period, unless an
193.26earlier time for payment is provided. A tax required to be deducted and withheld from
193.27compensation of an entertainer and from a payment to an out-of-state contractor must be
193.28paid on or before the date the return for such tax must be filed under section
193.29subdivision 2
193.30and trusts must be paid on a quarterly basis as estimated taxes under section
193.31partnerships and trusts and under section
193.32(b) An employer who, during the previous quarter, withheld more than $1,500 of
193.33tax under section
193.34withheld under those sections with the commissioner within the time allowed to deposit
193.35the employer's federal withheld employment taxes under Code of Federal Regulations,
194.1title 26, section 31.6302-1, as amended through December 31, 2001, without regard to the
194.2safe harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3).
194.3Taxpayers must submit a copy of their federal notice of deposit status to the commissioner
194.4upon request by the commissioner.
194.5(c) The commissioner may prescribe by rule other return periods or deposit
194.6requirements. In prescribing the reporting period, the commissioner may classify payors
194.7according to the amount of their tax liability and may adopt an appropriate reporting
194.8period for the class that the commissioner judges to be consistent with efficient tax
194.9collection. In no event will the duration of the reporting period be more than one year.
194.10(d) If less than the correct amount of tax is paid to the commissioner, proper
194.11adjustments with respect to both the tax and the amount to be deducted must be made,
194.12without interest, in the manner and at the times the commissioner prescribes. If the
194.13underpayment cannot be adjusted, the amount of the underpayment will be assessed and
194.14collected in the manner and at the times the commissioner prescribes.
194.15(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year
194.16ending June 30, the employer must remit each required deposit for wages paid in all
194.17subsequent calendar years by electronic means.
194.18(f) A third-party bulk filer as defined in section
194.19(a), clause (2), who remits withholding deposits must remit all deposits by electronic
194.20means as provided in paragraph (e), regardless of the aggregate amount of tax withheld
194.21during a fiscal year for all of the employers.
194.22EFFECTIVE DATE.This section is effective for taxable years beginning after
194.23December 31, 2015.
194.24 Sec. 7. Minnesota Statutes 2014, section 289A.31, subdivision 1, is amended to read:
194.25 Subdivision 1. Individual income, fiduciary income, mining company, corporate
194.26franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining
194.27company, and corporate franchise taxes, and interest and penalties, must be paid by the
194.28taxpayer upon whom the tax is imposed, except in the following cases:
194.29(1) The tax due from a decedent for that part of the taxable year in which the
194.30decedent died during which the decedent was alive and the taxes, interest, and penalty
194.31due for the prior years must be paid by the decedent's personal representative, if any.
194.32If there is no personal representative, the taxes, interest, and penalty must be paid by
194.33the transferees, as defined in section
194.34property from the decedent;
195.1(2) The tax due from an infant or other incompetent person must be paid by the
195.2person's guardian or other person authorized or permitted by law to act for the person;
195.3(3) The tax due from the estate of a decedent must be paid by the estate's personal
195.4representative;
195.5(4) The tax due from a trust, including those within the definition of a corporation, as
195.6defined in section
195.7(5) The tax due from a taxpayer whose business or property is in charge of a receiver,
195.8trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge of
195.9the business or property so far as the tax is due to the income from the business or property.
195.10(b) Entertainment taxes are the joint and several liability of the entertainer and the
195.11entertainment entity. The payor is liable to the state for the payment of the tax required to
195.12be deducted and withheld under section
195.13entertainer for the amount of the payment.
195.14(c) The
195.15partnerships
195.16EFFECTIVE DATE.This section is effective the day following final enactment.
195.17 Sec. 8. Minnesota Statutes 2014, section 289A.35, is amended to read:
195.18289A.35 ASSESSMENTS ON RETURNS.
195.19(a) The commissioner may audit and adjust the taxpayer's computation of federal
195.20taxable income, items of federal tax preferences, or federal credit amounts to make them
195.21conform with the provisions of chapter 290 or section
195.22the commissioner shall enter the liability reported on the return and may make any audit
195.23or investigation that is considered necessary.
195.24(b) Upon petition by a taxpayer, and when the commissioner determines that it is in
195.25the best interest of the state, the commissioner may allow S corporations and partnerships
195.26to receive orders of assessment issued under section 270C.33, subdivision 4, on behalf
195.27of their owners, and to pay liabilities shown on such orders. In such cases, the owners'
195.28liability must be calculated using the method provided in section 289A.08, subdivision 7,
195.29paragraph (b).
195.30(c) A taxpayer may petition the commissioner for the use of the method described
195.31in paragraph (b) after the taxpayer is notified that an audit has been initiated and before
195.32an order of assessment has been issued.
195.33(d) A determination of the commissioner under paragraph (b) to grant or deny the
195.34petition of a taxpayer cannot be appealed to the Tax Court or any other court.
196.1
196.2tax under chapter 291. In the case of a return filed pursuant to section
196.3commissioner shall notify the estate no later than nine months after the filing date, as
196.4provided by section
196.5or the return has been processed as filed.
196.6EFFECTIVE DATE.This section is effective the day following final enactment.
196.7 Sec. 9. Minnesota Statutes 2014, section 289A.60, subdivision 28, is amended to read:
196.8 Subd. 28. Preparer identification number. Any Minnesota
196.9return or claim for refund prepared by a "tax refund or return preparer" as defined in
196.10subdivision 13, paragraph (f), shall bear the identification number the preparer is required
196.11to use federally under section 6109(a)(4) of the Internal Revenue Code. A tax refund or
196.12return preparer who prepares a Minnesota
196.13by section 289A.08, subdivisions 1, 2, 3, and 7; or 289A.12, subdivision 3, or claim for
196.14refund and fails to include the required number on the return or claim is subject to a
196.15penalty of $50 for each failure.
196.16EFFECTIVE DATE.This section is effective for taxable years beginning after
196.17December 31, 2015.
196.18 Sec. 10. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:
196.19 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
196.20and trusts, there shall be subtracted from federal taxable income:
196.21 (1) net interest income on obligations of any authority, commission, or
196.22instrumentality of the United States to the extent includable in taxable income for federal
196.23income tax purposes but exempt from state income tax under the laws of the United States;
196.24 (2) if included in federal taxable income, the amount of any overpayment of income
196.25tax to Minnesota or to any other state, for any previous taxable year, whether the amount
196.26is received as a refund or as a credit to another taxable year's income tax liability;
196.27 (3) the amount paid to others, less the amount used to claim the credit allowed under
196.28section
196.29to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
196.30transportation of each qualifying child in attending an elementary or secondary school
196.31situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
196.32resident of this state may legally fulfill the state's compulsory attendance laws, which
196.33is not operated for profit, and which adheres to the provisions of the Civil Rights Act
197.1of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
197.2tuition as defined in section
197.3"textbooks" includes books and other instructional materials and equipment purchased
197.4or leased for use in elementary and secondary schools in teaching only those subjects
197.5legally and commonly taught in public elementary and secondary schools in this state.
197.6Equipment expenses qualifying for deduction includes expenses as defined and limited in
197.7section
197.8books and materials used in the teaching of religious tenets, doctrines, or worship, the
197.9purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
197.10or materials for, or transportation to, extracurricular activities including sporting events,
197.11musical or dramatic events, speech activities, driver's education, or similar programs. No
197.12deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
197.13the qualifying child's vehicle to provide such transportation for a qualifying child. For
197.14purposes of the subtraction provided by this clause, "qualifying child" has the meaning
197.15given in section 32(c)(3) of the Internal Revenue Code;
197.16 (4) income as provided under section
197.17 (5) to the extent included in federal adjusted gross income, income realized on
197.18disposition of property exempt from tax under section
197.19 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
197.20of the Internal Revenue Code in determining federal taxable income by an individual
197.21who does not itemize deductions for federal income tax purposes for the taxable year, an
197.22amount equal to 50 percent of the excess of charitable contributions over $500 allowable
197.23as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
197.24under the provisions of Public Law 109-1 and Public Law 111-126;
197.25 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
197.26qualify for a credit under section
197.27of subnational foreign taxes for the taxable year, but not to exceed the total subnational
197.28foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
197.29"federal foreign tax credit" means the credit allowed under section 27 of the Internal
197.30Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
197.31under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
197.32the extent they exceed the federal foreign tax credit;
197.33 (8) in each of the five tax years immediately following the tax year in which an
197.34addition is required under subdivision 19a, clause (7), or 19c, clause
197.35a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
197.36delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
198.1of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
198.2clause
198.3of any net operating loss under section 172 of the Internal Revenue Code generated for the
198.4tax year of the addition. The resulting delayed depreciation cannot be less than zero;
198.5 (9) job opportunity building zone income as provided under section
198.6 (10) to the extent included in federal taxable income, the amount of compensation
198.7paid to members of the Minnesota National Guard or other reserve components of the
198.8United States military for active service, including compensation for services performed
198.9under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
198.10service" means (i) state active service as defined in section
198.11(1); or (ii) federally funded state active service as defined in section
198.125b
198.13subdivision 3
198.14 (11) to the extent included in federal taxable income, the amount of compensation
198.15paid to Minnesota residents who are members of the armed forces of the United States
198.16or United Nations for active duty performed under United States Code, title 10; or the
198.17authority of the United Nations;
198.18 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
198.19qualified donor's donation, while living, of one or more of the qualified donor's organs
198.20to another person for human organ transplantation. For purposes of this clause, "organ"
198.21means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
198.22"human organ transplantation" means the medical procedure by which transfer of a human
198.23organ is made from the body of one person to the body of another person; "qualified
198.24expenses" means unreimbursed expenses for both the individual and the qualified donor
198.25for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
198.26may be subtracted under this clause only once; and "qualified donor" means the individual
198.27or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
198.28individual may claim the subtraction in this clause for each instance of organ donation for
198.29transplantation during the taxable year in which the qualified expenses occur;
198.30 (13) in each of the five tax years immediately following the tax year in which an
198.31addition is required under subdivision 19a, clause (8), or 19c, clause
198.32of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of
198.33the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause
198.34(12), in the case of a shareholder of a corporation that is an S corporation, minus the
198.35positive value of any net operating loss under section 172 of the Internal Revenue Code
199.1generated for the tax year of the addition. If the net operating loss exceeds the addition for
199.2the tax year, a subtraction is not allowed under this clause;
199.3 (14) to the extent included in the federal taxable income of a nonresident of
199.4Minnesota, compensation paid to a service member as defined in United States Code, title
199.510, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
199.6Act, Public Law 108-189, section 101(2);
199.7 (15) to the extent included in federal taxable income, the amount of national service
199.8educational awards received from the National Service Trust under United States Code,
199.9title 42, sections 12601 to 12604, for service in an approved Americorps National Service
199.10program;
199.11(16) to the extent included in federal taxable income, discharge of indebtedness
199.12income resulting from reacquisition of business indebtedness included in federal taxable
199.13income under section 108(i) of the Internal Revenue Code. This subtraction applies only
199.14to the extent that the income was included in net income in a prior year as a result of the
199.15addition under subdivision 19a, clause (13);
199.16(17) the amount of the net operating loss allowed under section
199.1711
199.18(18) the amount of expenses not allowed for federal income tax purposes due
199.19to claiming the railroad track maintenance credit under section 45G(a) of the Internal
199.20Revenue Code;
199.21(19) the amount of the limitation on itemized deductions under section 68(b) of the
199.22Internal Revenue Code;
199.23(20) the amount of the phaseout of personal exemptions under section 151(d) of
199.24the Internal Revenue Code; and
199.25(21) to the extent included in federal taxable income, the amount of qualified
199.26transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
199.27Revenue Code. The subtraction is limited to the lesser of the amount of qualified
199.28transportation fringe benefits received in excess of the limitations under section
199.29132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
199.30maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
199.31Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
199.32of the Internal Revenue Code.
199.33EFFECTIVE DATE.This section is effective the day following final enactment.
199.34 Sec. 11. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:
200.1 Subd. 19c. Corporations; additions to federal taxable income. For corporations,
200.2there shall be added to federal taxable income:
200.3 (1) the amount of any deduction taken for federal income tax purposes for income,
200.4excise, or franchise taxes based on net income or related minimum taxes, including but not
200.5limited to the tax imposed under section
200.6another state, a political subdivision of another state, the District of Columbia, or any
200.7foreign country or possession of the United States;
200.8 (2) interest not subject to federal tax upon obligations of: the United States, its
200.9possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
200.10state, any of its political or governmental subdivisions, any of its municipalities, or any
200.11of its governmental agencies or instrumentalities; the District of Columbia; or Indian
200.12tribal governments;
200.13 (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
200.14Revenue Code;
200.15 (4) the amount of any net operating loss deduction taken for federal income tax
200.16purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
200.17deduction under section 810 of the Internal Revenue Code;
200.18 (5) the amount of any special deductions taken for federal income tax purposes
200.19under sections 241 to 247 and 965 of the Internal Revenue Code;
200.20 (6) losses from the business of mining, as defined in section
200.21clause (a), that are not subject to Minnesota income tax;
200.22 (7) the amount of any capital losses deducted for federal income tax purposes under
200.23sections 1211 and 1212 of the Internal Revenue Code;
200.24 (8) the amount of percentage depletion deducted under sections 611 through 614 and
200.25291 of the Internal Revenue Code;
200.26
200.27
200.28
200.29
200.30
200.31
200.32through to the partner because the partnership elected to pay the tax on the income under
200.33section 6242(a)(2) of the Internal Revenue Code;
200.34
200.35Internal Revenue Code, for the taxable year when subpart F income is calculated without
200.36regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
201.1
201.2168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if
201.3the taxpayer has an activity that in the taxable year generates a deduction for depreciation
201.4under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable
201.5year that the taxpayer is not allowed to claim for the taxable year, "the depreciation
201.6allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess
201.7of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A)
201.8over the amount of the loss from the activity that is not allowed in the taxable year. In
201.9succeeding taxable years when the losses not allowed in the taxable year are allowed, the
201.10depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
201.11
201.12the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
201.13Revenue Code of 1986, as amended through December 31, 2003;
201.14
201.15the deduction allowable under section 199 of the Internal Revenue Code;
201.16
201.17
201.18indebtedness and deferred under section 108(i) of the Internal Revenue Code.
201.19EFFECTIVE DATE.This section is effective the day following final enactment.
201.20 Sec. 12. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:
201.21 Subd. 19d. Corporations; modifications decreasing federal taxable income. For
201.22corporations, there shall be subtracted from federal taxable income after the increases
201.23provided in subdivision 19c:
201.24 (1) the amount of foreign dividend gross-up added to gross income for federal
201.25income tax purposes under section 78 of the Internal Revenue Code;
201.26 (2) the amount of salary expense not allowed for federal income tax purposes due to
201.27claiming the work opportunity credit under section 51 of the Internal Revenue Code;
201.28 (3) any dividend (not including any distribution in liquidation) paid within the
201.29taxable year by a national or state bank to the United States, or to any instrumentality of
201.30the United States exempt from federal income taxes, on the preferred stock of the bank
201.31owned by the United States or the instrumentality;
201.32 (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the
201.33Internal Revenue Code, except that:
201.34 (i) for capital losses incurred in taxable years beginning after December 31, 1986,
201.35capital loss carrybacks shall not be allowed;
202.1 (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
202.2a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
202.3allowed;
202.4 (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
202.5capital loss carryback to each of the three taxable years preceding the loss year, subject to
202.6the provisions of Minnesota Statutes 1986, section
202.7 (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
202.8a capital loss carryover to each of the five taxable years succeeding the loss year to the
202.9extent such loss was not used in a prior taxable year and subject to the provisions of
202.10Minnesota Statutes 1986, section
202.11 (5) an amount for interest and expenses relating to income not taxable for federal
202.12income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
202.13expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
202.14291 of the Internal Revenue Code in computing federal taxable income;
202.15 (6) in the case of mines, oil and gas wells, other natural deposits, and timber for
202.16which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a
202.17reasonable allowance for depletion based on actual cost. In the case of leases the deduction
202.18must be apportioned between the lessor and lessee in accordance with rules prescribed
202.19by the commissioner. In the case of property held in trust, the allowable deduction must
202.20be apportioned between the income beneficiaries and the trustee in accordance with the
202.21pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
202.22of the trust's income allocable to each;
202.23
202.24
202.25
202.26
202.27
202.28
202.29income, excise, or franchise taxes based on net income or related minimum taxes paid
202.30by the corporation to Minnesota, another state, a political subdivision of another state,
202.31the District of Columbia, or a foreign country or possession of the United States to the
202.32extent that the taxes were added to federal taxable income under subdivision 19c, clause
202.33(1), in a prior taxable year;
202.34
202.35subdivision 1
203.1
203.2allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
203.3
203.4tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
203.5that the amount exceeds the amount of the credit allowed under section
203.6
203.7due to claiming the Indian employment credit under section 45A(a) of the Internal
203.8Revenue Code;
203.9
203.10Internal Revenue Code, for the taxable year when subpart F income is calculated without
203.11regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
203.12
203.13addition is required under subdivision 19c, clause
203.14of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
203.15amount of the addition made by the taxpayer under subdivision 19c, clause
203.16resulting delayed depreciation cannot be less than zero;
203.17
203.18addition is required under subdivision 19c, clause
203.19of the amount of the addition;
203.20
203.21income resulting from reacquisition of business indebtedness included in federal taxable
203.22income under section 108(i) of the Internal Revenue Code. This subtraction applies only
203.23to the extent that the income was included in net income in a prior year as a result of the
203.24addition under subdivision 19c, clause
203.25
203.26to claiming the railroad track maintenance credit under section 45G(a) of the Internal
203.27Revenue Code.
203.28EFFECTIVE DATE.This section is effective the day following final enactment.
203.29 Sec. 13. Minnesota Statutes 2014, section 290.0672, subdivision 1, is amended to read:
203.30 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
203.31have the meanings given.
203.32(b) "Long-term care insurance" means a policy that:
203.33(1) qualifies for a deduction under section 213 of the Internal Revenue Code,
203.34disregarding the
204.1given in section
204.2jurisdiction; and
204.3(2) has a lifetime long-term care benefit limit of not less than $100,000; and
204.4(3) has been offered in compliance with the inflation protection requirements of
204.5section
204.6(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
204.7(d) "Premiums deducted in determining federal taxable income" means the lesser of
204.8(1) long-term care insurance premiums that qualify as deductions under section 213 of
204.9the Internal Revenue Code; and (2) the total amount deductible for medical care under
204.10section 213 of the Internal Revenue Code.
204.11EFFECTIVE DATE.This section is effective retroactively for taxable years
204.12beginning after December 31, 2012.
204.13 Sec. 14. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:
204.14 Subd. 2. Definitions. For purposes of this section, the following terms have the
204.15meanings given.
204.16 (a) "Qualified research expenses" means (i) qualified research expenses and basic
204.17research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
204.18it does not include expenses incurred for qualified research or basic research conducted
204.19outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue
204.20Code; and (ii) contributions to a nonprofit corporation established and operated pursuant
204.21to the provisions of chapter 317A for the purpose of promoting the establishment and
204.22expansion of business in this state, provided the contributions are invested by the nonprofit
204.23corporation for the purpose of providing funds for small, technologically innovative
204.24enterprises in Minnesota during the early stages of their development.
204.25 (b) "Qualified research" means qualified research as defined in section 41(d) of the
204.26Internal Revenue Code, except that the term does not include qualified research conducted
204.27outside the state of Minnesota.
204.28 (c) "Base amount" means base amount as defined in section 41(c) of the Internal
204.29Revenue Code, except that the average annual gross receipts and aggregate gross receipts
204.30must be calculated using Minnesota sales or receipts under section
204.31definitions contained in
204.32EFFECTIVE DATE.This section is effective the day following final enactment.
204.33 Sec. 15. Minnesota Statutes 2014, section 290.091, subdivision 3, is amended to read:
205.1 Subd. 3. Exemption amount. (a) For purposes of computing the alternative
205.2minimum tax, the exemption amount is, for taxable years beginning after December 31,
205.32005, $60,000 for married couples filing joint returns, $30,000 for married individuals
205.4filing separate returns, estates, and trusts, and $45,000 for unmarried individuals.
205.5 (b) The exemption amount determined under this subdivision is subject to the phase
205.6out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum
205.7taxable income as determined under this section must be substituted in the computation of
205.8the phase out.
205.9 (c) For taxable years beginning after December 31, 2006, the exemption amount
205.10under paragraph (a)
205.11adjust the exemption amount by the percentage determined pursuant to the provisions of
205.12section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2005"
205.13shall be substituted for the word "1992." For 2007, the commissioner shall then determine
205.14the percent change from the 12 months ending on August 31, 2005, to the 12 months
205.15ending on August 31, 2006, and in each subsequent year, from the 12 months ending on
205.16August 31, 2005, to the 12 months ending on August 31 of the year preceding the taxable
205.17year. The exemption amount as adjusted must be rounded to the nearest $10. If the amount
205.18ends in $5, it must be rounded up to the nearest $10 amount. The determination of the
205.19commissioner under this subdivision is not a rule under the Administrative Procedure Act.
205.20EFFECTIVE DATE.This section is effective the day following final enactment.
205.21 Sec. 16. Minnesota Statutes 2014, section 290.0921, subdivision 3, is amended to read:
205.22 Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable
205.23income" is Minnesota net income as defined in section
205.24includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
205.25(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
205.26Minnesota tax return, the minimum tax must be computed on a separate company basis.
205.27If a corporation is part of a tax group filing a unitary return, the minimum tax must be
205.28computed on a unitary basis. The following adjustments must be made.
205.29(1) The portion of the depreciation deduction allowed for federal income tax
205.30purposes under section 168(k) of the Internal Revenue Code that is required as an addition
205.31under section
205.32alternative minimum taxable income.
205.33(2) The subtraction for depreciation allowed under section
205.3419d
205.35minimum taxable income.
206.1(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
206.2of the Internal Revenue Code does not apply.
206.3(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
206.4Revenue Code does not apply.
206.5(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue
206.6Code does not apply.
206.7(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
206.8Revenue Code does not apply.
206.9(7) The tax preference for charitable contributions of appreciated property under
206.10section 57(a)(6) of the Internal Revenue Code does not apply.
206.11(8) For purposes of calculating the adjustment for adjusted current earnings in
206.12section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
206.13income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
206.14minimum taxable income as defined in this subdivision, determined without regard to the
206.15adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
206.16(9) For purposes of determining the amount of adjusted current earnings under
206.17section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
206.1856(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
206.19gross-up subtracted as provided in section
206.20amount of refunds of income, excise, or franchise taxes subtracted as provided in section
206.22(10) Alternative minimum taxable income excludes the income from operating in a
206.23job opportunity building zone as provided under section
206.24Items of tax preference must not be reduced below zero as a result of the
206.25modifications in this subdivision.
206.26EFFECTIVE DATE.This section is effective the day following final enactment.
206.27 Sec. 17. Minnesota Statutes 2014, section 290.17, subdivision 2, is amended to read:
206.28 Subd. 2. Income not derived from conduct of a trade or business. The income of
206.29a taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
206.30business must be assigned in accordance with paragraphs (a) to (f):
206.31 (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in
206.32section 3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the
206.33extent that, the work of the employee is performed within it; all other income from such
206.34sources is treated as income from sources without this state.
207.1 Severance pay shall be considered income from labor or personal or professional
207.2services.
207.3 (2) In the case of an individual who is a nonresident of Minnesota and who is an
207.4athlete or entertainer, income from compensation for labor or personal services performed
207.5within this state shall be determined in the following manner:
207.6 (i) The amount of income to be assigned to Minnesota for an individual who is a
207.7nonresident salaried athletic team employee shall be determined by using a fraction in
207.8which the denominator contains the total number of days in which the individual is under
207.9a duty to perform for the employer, and the numerator is the total number of those days
207.10spent in Minnesota. For purposes of this paragraph, off-season training activities, unless
207.11conducted at the team's facilities as part of a team imposed program, are not included in
207.12the total number of duty days. Bonuses earned as a result of play during the regular season
207.13or for participation in championship, play-off, or all-star games must be allocated under
207.14the formula. Signing bonuses are not subject to allocation under the formula if they are
207.15not conditional on playing any games for the team, are payable separately from any other
207.16compensation, and are nonrefundable; and
207.17 (ii) The amount of income to be assigned to Minnesota for an individual who is a
207.18nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's
207.19athletic or entertainment performance in Minnesota shall be determined by assigning to
207.20this state all income from performances or athletic contests in this state.
207.21 (3) For purposes of this section, amounts received by a nonresident as "retirement
207.22income" as defined in section (b)(1) of the State Income Taxation of Pension Income
207.23Act, Public Law 104-95, are not considered income derived from carrying on a trade
207.24or business or from wages or other compensation for work an employee performed in
207.25Minnesota, and are not taxable under this chapter.
207.26 (b) Income or gains from tangible property located in this state that is not employed
207.27in the business of the recipient of the income or gains must be assigned to this state.
207.28 (c) Income or gains from intangible personal property not employed in the business
207.29of the recipient of the income or gains must be assigned to this state if the recipient of the
207.30income or gains is a resident of this state or is a resident trust or estate.
207.31 Gain on the sale of a partnership interest is allocable to this state in the ratio of the
207.32original cost of partnership tangible property in this state to the original cost of partnership
207.33tangible property everywhere, determined at the time of the sale. If more than 50 percent
207.34of the value of the partnership's assets consists of intangibles, gain or loss from the sale
207.35of the partnership interest is allocated to this state in accordance with the sales factor of
208.1the partnership for its first full tax period immediately preceding the tax period of the
208.2partnership during which the partnership interest was sold.
208.3Gain on the sale of an interest in a single member limited liability company that
208.4is disregarded for federal income tax purposes is allocable to this state as if the single
208.5member limited liability company did not exist and the assets of the limited liability
208.6company are personally owned by the sole member.
208.7 Gain on the sale of goodwill or income from a covenant not to compete that is
208.8connected with a business operating all or partially in Minnesota is allocated to this state
208.9to the extent that the income from the business in the year preceding the year of sale was
208.10
208.11 When an employer pays an employee for a covenant not to compete, the income
208.12allocated to this state is in the ratio of the employee's service in Minnesota in the calendar
208.13year preceding leaving the employment of the employer over the total services performed
208.14by the employee for the employer in that year.
208.15 (d) Income from winnings on a bet made by an individual while in Minnesota is
208.16assigned to this state. In this paragraph, "bet" has the meaning given in section
208.17subdivision 2
208.18 (e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
208.19taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
208.20 (f) For the purposes of this section, working as an employee shall not be considered
208.21to be conducting a trade or business.
208.22EFFECTIVE DATE.This section is effective the day following final enactment.
208.23 Sec. 18. Minnesota Statutes 2014, section 290.31, subdivision 1, is amended to read:
208.24 Subdivision 1. Partners, not partnership, subject to tax. Except as provided
208.25under section 289A.35, paragraph (b), a partnership as such shall not be subject to the
208.26income tax imposed by this chapter, but is subject to the tax imposed under section
208.28in their separate or individual capacities.
208.29EFFECTIVE DATE.This section is effective the day following final enactment.
208.30 Sec. 19. Minnesota Statutes 2014, section 290A.19, is amended to read:
208.31290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT
208.32CERTIFICATE.
209.1(a) The owner or managing agent of any property for which rent is paid for
209.2occupancy as a homestead must furnish a certificate of rent paid to a person who is a
209.3renter on December 31, in the form prescribed by the commissioner. If the renter moves
209.4before December 31, the owner or managing agent may give the certificate to the renter
209.5at the time of moving, or mail the certificate to the forwarding address if an address has
209.6been provided by the renter. The certificate must be made available to the renter before
209.7February 1 of the year following the year in which the rent was paid. The owner or
209.8managing agent must retain a duplicate of each certificate or an equivalent record showing
209.9the same information for a period of three years. The duplicate or other record must be
209.10made available to the commissioner upon request.
209.11(b) The commissioner may require the owner or managing agent, through a
209.12simple process, to furnish to the commissioner on or before March 1 a copy of each
209.13certificate of rent paid furnished to a renter for rent paid in the prior year, in the content,
209.14format, and manner prescribed by the commissioner pursuant to section 270C.30. Prior
209.15to implementation, the commissioner, after consulting with representatives of owners
209.16or managing agents, shall develop an implementation and administration plan for the
209.17requirements of this paragraph that attempts to minimize financial burdens, administration
209.18and compliance costs, and takes into consideration existing systems of owners and
209.19managing agents.
209.20(c) For the purposes of this section, "owner" includes a park owner as defined under
209.21section
209.23EFFECTIVE DATE.This section is effective for certificates of rent paid furnished
209.24to a renter for rent paid after December 31, 2015.
209.25 Sec. 20. Minnesota Statutes 2014, section 291.016, subdivision 2, is amended to read:
209.26 Subd. 2. Additions. The following amounts, to the extent deducted in computing
209.27or otherwise excluded from the federal taxable estate, must be added in computing the
209.28Minnesota taxable estate:
209.29(1) the amount of the deduction for state death taxes allowed under section 2058 of
209.30the Internal Revenue Code;
209.31(2) the amount of the deduction for foreign death taxes allowed under section
209.322053(d) of the Internal Revenue Code; and
209.33(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal
209.34Revenue Code, made by the decedent within three years of the date of death. For purposes
210.1of this clause, the amount of the addition equals the value of the gift under section 2512 of
210.2the Internal Revenue Code and excludes any value of the gift included in the federal estate.
210.3EFFECTIVE DATE.This section is effective retroactively for estates of decedents
210.4dying after June 30, 2013.
210.5 Sec. 21. Minnesota Statutes 2014, section 291.016, subdivision 3, is amended to read:
210.6 Subd. 3. Subtraction. The following amounts, to the extent included in computing
210.7the federal taxable estate, may be subtracted in computing the Minnesota taxable estate
210.8but must not reduce the Minnesota taxable estate to less than zero:
210.9(1) the value of property subject to an election under section 291.03, subdivision
210.101d; and
210.11(2) the value of qualified small business property under section
210.129
210.13result of $5,000,000 minus the amount for the year of death listed in
210.14items (i) to (v), whichever is less
210.15
210.16
210.17
210.18
210.19
210.20
210.21EFFECTIVE DATE.This section is effective retroactively for estates of decedents
210.22dying after June 30, 2011.
210.23 Sec. 22. Minnesota Statutes 2014, section 291.03, subdivision 9, is amended to read:
210.24 Subd. 9. Qualified small business property. Property satisfying all of the following
210.25requirements is qualified small business property:
210.26(1) The value of the property was included in the federal adjusted taxable estate.
210.27(2) The property consists of the assets of a trade or business or shares of stock or other
210.28ownership interests in a corporation or other entity engaged in a trade or business. Shares
210.29of stock in a corporation or an ownership interest in another type of entity do not qualify
210.30under this subdivision if the shares or ownership interests are traded on a public stock
210.31exchange at any time during the three-year period ending on the decedent's date of death.
210.32For purposes of this subdivision, an ownership interest includes the interest the decedent
210.33is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
211.1(3) During the taxable year that ended before the decedent's death, the trade or
211.2business must not have been a passive activity within the meaning of section 469(c) of the
211.3Internal Revenue Code, and the decedent or the decedent's spouse must have materially
211.4participated in the trade or business within the meaning of section 469(h) of the Internal
211.5Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other
211.6provision provided by United States Treasury Department regulation that substitutes
211.7material participation in prior taxable years for material participation in the taxable year
211.8that ended before the decedent's death.
211.9(4) The gross annual sales of the trade or business were $10,000,000 or less for the
211.10last taxable year that ended before the date of the death of the decedent.
211.11(5) The property does not
211.12(i) cash
211.13(ii) cash equivalents
211.14(iii) publicly traded securities
211.15(iv) any assets not used in the operation of the trade or business.
211.16(6) For property consisting of shares of stock or other ownership interests in an
211.17entity, the value of
211.18
211.19described in clause (5) must be
211.20
211.21
211.22
211.23decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue
211.24Code, for the three-year period ending on the date of death of the decedent. In the case of
211.25a sole proprietor, if the property replaced similar property within the three-year period,
211.26the replacement property will be treated as having been owned for the three-year period
211.27ending on the date of death of the decedent.
211.28
211.29is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code,
211.30and a family member materially participates in the operation of the trade or business within
211.31the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
211.32of the Internal Revenue Code and any other provision provided by United States Treasury
211.33Department regulation that substitutes material participation in prior taxable years for
211.34material participation in the three years following the date of death of the decedent.
212.1
212.2business property and agree, in the form prescribed by the commissioner, to pay the
212.3recapture tax under subdivision 11, if applicable.
212.4EFFECTIVE DATE.This section is effective retroactively for estates of decedents
212.5dying after June 30, 2011.
212.6 Sec. 23. Minnesota Statutes 2014, section 291.03, subdivision 11, is amended to read:
212.7 Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and
212.8before the death of the qualified heir, the qualified heir disposes of any interest in the
212.9qualified property, other than by a disposition to a family member, or a family member
212.10ceases to satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an
212.11additional estate tax is imposed on the property. In the case of a sole proprietor, if the
212.12qualified heir replaces qualified small business property excluded under subdivision 9
212.13with similar property, then the qualified heir will not be treated as having disposed of an
212.14interest in the qualified property.
212.15(b) The amount of the additional tax equals the amount of the exclusion claimed by
212.16the estate under subdivision 8, paragraph (d), multiplied by 16 percent.
212.17(c) The additional tax under this subdivision is due on the day which is six months
212.18after the date of the disposition or cessation in paragraph (a).
212.19(d) This subdivision shall not apply as a result of any of the following:
212.20(1) a portion of qualified farm property consisting of less than one-fifth of the acreage
212.21of the property is reclassified as class 2b property under section 273.13, subdivision 23,
212.22and the qualified heir has not substantially altered the reclassified property during the
212.23three-year holding period; or
212.24(2) a portion of qualified farm property classified as 2a property at the death of
212.25the decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a
212.26residence, garage, and immediately surrounding one acre of land is reclassified as 4bb
212.27property during the three-year holding period, and the qualified heir has not substantially
212.28altered the property.
212.29EFFECTIVE DATE.This section is effective retroactively for estates of decedents
212.30dying after June 30, 2011.
212.31 Sec. 24. Minnesota Statutes 2014, section 291.031, is amended to read:
212.32291.031 CREDIT.
213.1(a) The estate of a nonresident decedent that is subject to tax under this chapter on
213.2the value of Minnesota situs property held in a pass-through entity is allowed a credit
213.3against the tax due under section
213.4(1) the amount of estate or inheritance tax paid to another state that is attributable to
213.5the Minnesota situs property held in the pass-through entity; or
213.6(2) the amount of tax
213.7the Minnesota situs property held in the pass-through entity.
213.8(b) The amount of tax attributable to the Minnesota situs property held in the
213.9pass-through entity must be determined by the increase in the estate or inheritance tax that
213.10results from including the market value of the property in the estate or treating the value
213.11as a taxable inheritance to the recipient of the property.
213.12EFFECTIVE DATE.This section is effective retroactively for estates of decedents
213.13dying after December 31, 2013.
213.14 Sec. 25. REPEALER.
213.15(a) Minnesota Rules, part 8092.1400, is repealed.
213.16(b) Minnesota Rules, part 8092.2000, is repealed.
213.17EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after
213.18December 31, 2015, except that notifications from the Department of Revenue to
213.19employers regarding eligibility to file an annual return for taxes withheld in calendar year
213.202016 remain in force. Paragraph (b) is effective the day following final enactment.
213.24 Section 1. Minnesota Statutes 2014, section 69.021, subdivision 5, is amended to read:
213.25 Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for
213.26apportionment, before the addition of the minimum fire state aid allocation amount under
213.27subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state
213.28upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to
213.29the commissioner by insurers on the Minnesota Firetown Premium Report. This amount
213.30must be reduced by the amount required to pay the state auditor's costs and expenses of
213.31the audits or exams of the firefighters relief associations.
213.32The total amount for apportionment in respect to fire state aid must not be less than
213.33two percent of the premiums reported to the commissioner by insurers on the Minnesota
213.34Firetown Premium Report after subtracting the following amounts:
214.1(1) the amount required to pay the state auditor's costs and expenses of the audits or
214.2exams of the firefighters relief associations; and
214.3(2) one percent of the premiums reported by
214.4insurance companies and mutual property and casualty companies with total assets of
214.5$5,000,000 or less.
214.6(b) The total amount for apportionment as police state aid is equal to 104 percent
214.7of the amount of premium taxes paid to the state on the premiums reported to the
214.8commissioner by insurers on the Minnesota Aid to Police Premium Report. The total
214.9amount for apportionment in respect to the police state aid program must not be less than
214.10two percent of the amount of premiums reported to the commissioner by insurers on the
214.11Minnesota Aid to Police Premium Report.
214.12(c) The commissioner shall calculate the percentage of increase or decrease reflected
214.13in the apportionment over or under the previous year's available state aid using the same
214.14premiums as a basis for comparison.
214.15(d) In addition to the amount for apportionment of police state aid under paragraph
214.16(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to
214.17pay this increase is annually appropriated from the general fund.
214.18EFFECTIVE DATE.This section is effective the day following final enactment.
214.19 Sec. 2. Minnesota Statutes 2014, section 289A.38, subdivision 6, is amended to read:
214.20 Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed
214.21within 6-1/2 years after the due date of the return or the date the return was filed,
214.22whichever is later, if:
214.23(1) the taxpayer omits from gross income an amount properly includable in it that is
214.24in excess of 25 percent of the amount of gross income stated in the return;
214.25(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a
214.26tax imposed under section 295.52, an amount of taxes in excess of 25 percent of the
214.27taxes reported in the return; or
214.28(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the
214.29gross estate reported in the return.
214.30EFFECTIVE DATE.This section is effective the day following final enactment.
214.31 Sec. 3. Minnesota Statutes 2014, section 290.0922, subdivision 2, is amended to read:
214.32 Subd. 2. Exemptions. The following entities are exempt from the tax imposed
214.33by this section:
215.1(1) corporations exempt from tax under section
215.2(2) real estate investment trusts;
215.3(3) regulated investment companies or a fund thereof; and
215.4(4) entities having a valid election in effect under section 860D(b) of the Internal
215.5Revenue Code;
215.6(5)
215.7(6) cooperatives organized under chapter 308A or 308B that provide housing
215.8exclusively to persons age 55 and over and are classified as homesteads under section
215.10(7) a qualified business as defined under section
215.11taxable year all of its property is located in a job opportunity building zone designated
215.12under section
215.13under section
215.14Entities not specifically exempted by this subdivision are subject to tax under this
215.15section, notwithstanding section
215.16EFFECTIVE DATE.This section is effective the day following final enactment.
215.17 Sec. 4. Minnesota Statutes 2014, section 295.54, subdivision 2, is amended to read:
215.18 Subd. 2. Pharmacy refund. A pharmacy may claim an annual refund against
215.19the total amount of tax, if any, the pharmacy owes during that calendar year under
215.20section
215.21to a wholesale drug distributor subject to tax under section
215.22legend drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax
215.23percentage specified in section
215.24the tax liability of the pharmacy under section
215.25shall provide the pharmacy with a refund equal to the excess amount. Each qualifying
215.26pharmacy must apply for the refund on the annual return as
215.27
215.28following the calendar year the legend drugs were delivered outside Minnesota. The
215.29refund
215.30
215.31after the original due date of the return. Interest on refunds paid under this subdivision
215.32will begin to accrue 60 days after the date a claim for refund is filed. For purposes of this
215.33subdivision, the date a claim is filed is the due date of the return if a return is due or the
215.34date of the actual claim for refund, whichever is later.
216.1EFFECTIVE DATE.This section is effective for qualifying legend drugs delivered
216.2outside Minnesota after December 31, 2015.
216.3 Sec. 5. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision
216.4to read:
216.5 Subd. 9a. Bulk storage or bulk storage facility. "Bulk storage" or "bulk storage
216.6facility" means a single property, or contiguous or adjacent properties used for a common
216.7purpose and owned or operated by the same person, on or in which are located one or more
216.8stationary tanks that are used singularly or in combination for the storage or containment
216.9of more than 1,100 gallons of petroleum.
216.10EFFECTIVE DATE.This section is effective the day following final enactment.
216.11 Sec. 6. Minnesota Statutes 2014, section 296A.01, subdivision 33, is amended to read:
216.12 Subd. 33. Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel,
216.13regardless of its composition or properties, used to propel a motor vehicle.
216.14EFFECTIVE DATE.This section is effective the day following final enactment.
216.15 Sec. 7. Minnesota Statutes 2014, section 296A.01, subdivision 42, is amended to read:
216.16 Subd. 42. Petroleum products. "Petroleum products" means all of the products
216.17defined in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.
216.18EFFECTIVE DATE.This section is effective the day following final enactment.
216.19 Sec. 8. Minnesota Statutes 2014, section 296A.07, subdivision 1, is amended to read:
216.20 Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline
216.21blended with ethanol, and agricultural alcohol gasoline used in producing and generating
216.22power for propelling motor vehicles used on the public highways of this state. The tax
216.23is imposed on the first licensed distributor who received the product in Minnesota. For
216.24purposes of this section, gasoline is defined in section
216.2520, 23, 24, 25, 32, and 34
216.26prescribed by the commissioner. The tax is payable at the rates specified in subdivision 3,
216.27subject to the exceptions and reductions specified in section
216.28EFFECTIVE DATE.This section is effective the day following final enactment.
216.29 Sec. 9. Minnesota Statutes 2014, section 297A.61, subdivision 10, is amended to read:
217.1 Subd. 10. Tangible personal property. (a) "Tangible personal property" means
217.2personal property that can be seen, weighed, measured, felt, or touched, or that is in any
217.3other manner perceptible to the senses. "Tangible personal property" includes, but is not
217.4limited to, electricity, water, gas, steam, and prewritten computer software.
217.5 (b) Tangible personal property does not include:
217.6
217.7
217.8
217.9
217.10
217.11
217.12EFFECTIVE DATE.This section is effective the day following final enactment.
217.13 Sec. 10. Minnesota Statutes 2014, section 297A.82, subdivision 4, is amended to read:
217.14 Subd. 4. Exemptions. (a) The following transactions are exempt from the tax
217.15imposed in this chapter to the extent provided.
217.16(b) The purchase or use of aircraft previously registered in Minnesota by a
217.17corporation or partnership is exempt if the transfer constitutes a transfer within the
217.18meaning of section 351 or 721 of the Internal Revenue Code.
217.19(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
217.20of an aircraft for which a commercial use permit has been issued pursuant to section
217.22(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
217.23airline companies, as defined in section
217.24of this subdivision, "air flight equipment" includes airplanes and parts necessary for the
217.25repair and maintenance of such air flight equipment, and flight simulators, but does not
217.26include
217.27
217.28(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
217.29in section
217.30seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
217.31shipped or transported outside Minnesota by the purchaser are exempt, but only if the
217.32purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
217.33returned to a point within Minnesota, except in the course of interstate commerce or
217.34isolated and occasional use, and will be registered in another state or country upon its
217.35removal from Minnesota. This exemption applies even if the purchaser takes possession of
218.1the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
218.2for a period not to exceed ten days prior to removing the aircraft from this state.
218.3(f) The sale or purchase of the following items that relate to aircraft operated under
218.4Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
218.5equipment and parts necessary for repair and maintenance of aircraft; and equipment
218.6and parts to upgrade and improve aircraft.
218.7EFFECTIVE DATE.This section is effective for sales and purchases made after
218.8December 31, 2016.
218.9 Sec. 11. Minnesota Statutes 2014, section 297A.82, subdivision 4a, is amended to read:
218.10 Subd. 4a. Deposit in state airports fund. Tax revenue, including interest and
218.11penalties, collected from the sale or purchase of an aircraft taxable under this chapter must
218.12be deposited in the state airports fund established in section
218.13subdivision, "revenue" does not include the revenue, including interest and penalties,
218.14generated by the sales tax imposed under section 297A.62, subdivision 1a, which must be
218.15deposited as provided under article XI, section 15, of the Minnesota Constitution.
218.16EFFECTIVE DATE.This section is effective the day following final enactment.
218.17 Sec. 12. Minnesota Statutes 2014, section 297E.02, subdivision 7, is amended to read:
218.18 Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal
218.19sanctions imposed by this chapter, a person, organization, or business entity possessing or
218.20selling a pull-tab, electronic pull-tab game, or tipboard upon which the tax imposed by
218.21this chapter has not been paid is liable for a tax of six percent of the ideal gross of each
218.22pull-tab, electronic pull-tab game, or tipboard. The tax on a partial deal must be assessed
218.23as if it were a full deal.
218.24(b) In addition to penalties and criminal sanctions imposed by this chapter, a person
218.25(1) not licensed by the board who conducts bingo, linked bingo, electronic linked bingo,
218.26raffles, or paddlewheel games, or (2) who conducts gambling prohibited under sections
218.27609.75 to 609.763, other than activities subject to tax under section 297E.03, is liable for a
218.28tax of six percent of the gross receipts from that activity.
218.29(c) The tax
218.30considered a jeopardy assessment or jeopardy collection as provided in section
218.31The commissioner shall assess the tax based on personal knowledge or information
218.32available to the commissioner. The commissioner shall mail to the taxpayer at the
218.33taxpayer's last known address, or serve in person, a written notice of the amount of tax,
219.1demand its immediate payment, and, if payment is not immediately made, collect the tax
219.2by any method described in chapter 270C, except that the commissioner need not await the
219.3expiration of the times specified in chapter 270C. The tax assessed by the commissioner
219.4is presumed to be valid and correctly determined and assessed. The burden is upon the
219.5taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision
219.6does not apply to gambling that is exempt from taxation under subdivision 2.
219.7(d) A person, organization, or business entity conducting gambling activity under
219.8this subdivision must file monthly tax returns with the commissioner, in the form required
219.9by the commissioner. The returns must be filed on or before the 20th day of the month
219.10following the month in which the gambling activity occurred. The tax imposed by this
219.11section is due and payable at the time when the returns are required to be filed.
219.12(e) Notwithstanding any law to the contrary, neither the commissioner nor a public
219.13employee may reveal facts contained in a tax return filed with the commissioner of
219.14revenue as required by this subdivision, nor can any information contained in the report or
219.15return be used against the tax obligor in any criminal proceeding, unless independently
219.16obtained, except in connection with a proceeding involving taxes due under this section,
219.17or as provided in section 270C.055, subdivision 1. However, this paragraph does not
219.18prohibit the commissioner from publishing statistics that do not disclose the identity of
219.19tax obligors or the contents of particular returns or reports. Any person violating this
219.20paragraph is guilty of a gross misdemeanor.
219.21EFFECTIVE DATE.This section is effective for games played or purchased after
219.22June 30, 2016.
219.23 Sec. 13. Minnesota Statutes 2014, section 297H.06, subdivision 2, is amended to read:
219.24 Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed
219.25municipal solid waste or upon the volume of nonmixed municipal solid waste for waste
219.26management services to manage the following materials:
219.27(1) mixed municipal solid waste and nonmixed municipal solid waste generated
219.28outside of Minnesota;
219.29(2) recyclable materials that are separated for recycling by the generator, collected
219.30separately from other waste, and recycled, to the extent the price of the service for
219.31handling recyclable material is separately itemized on a bill to the generator;
219.32(3) recyclable nonmixed municipal solid waste that is separated for recycling by
219.33the generator, collected separately from other waste, delivered to a waste facility for the
219.34purpose of recycling, and recycled;
220.1(4) industrial waste, when it is transported to a facility owned and operated by
220.2the same person that generated it;
220.3(5) mixed municipal solid waste from a recycling facility that separates or processes
220.4recyclable materials and reduces the volume of the waste by at least 85 percent, provided
220.5that the exempted waste is managed separately from other waste;
220.6(6) recyclable materials that are separated from mixed municipal solid waste by the
220.7generator, collected and delivered to a waste facility that recycles at least 85 percent of its
220.8waste, and are collected with mixed municipal solid waste that is segregated in leakproof
220.9bags, provided that the mixed municipal solid waste does not exceed five percent of the
220.10total weight of the materials delivered to the facility and is ultimately delivered to a waste
220.11facility identified as a preferred waste management facility in county solid waste plans
220.12under section
220.13(7) source-separated compostable
220.14delivered to a facility exempted as described in this clause. To initially qualify for an
220.15exemption, a facility must apply for an exemption in its application for a new or amended
220.16solid waste permit to the Pollution Control Agency. The first time a facility applies to the
220.17agency it must certify in its application that it will comply with the criteria in items (i) to (v)
220.18and the commissioner of the agency shall so certify to the commissioner of revenue who
220.19must grant the exemption. The facility must annually apply to the agency for certification
220.20to renew its exemption for the following year. The application must be filed according to
220.21the procedures of, and contain the information required by, the agency. The commissioner
220.22of revenue shall grant the exemption if the commissioner of the Pollution Control Agency
220.23finds and certifies to the commissioner of revenue that based on an evaluation of the
220.24composition of incoming waste and residuals and the quality and use of the product:
220.25(i) generators separate materials at the source;
220.26(ii) the separation is performed in a manner appropriate to the technology specific
220.27to the facility that:
220.28(A) maximizes the quality of the product;
220.29(B) minimizes the toxicity and quantity of
220.30(C) provides an opportunity for significant improvement in the environmental
220.31efficiency of the operation;
220.32(iii) the operator of the facility educates generators, in coordination with each county
220.33using the facility, about separating the waste to maximize the quality of the waste stream
220.34for technology specific to the facility;
220.35(iv) process
220.36material delivered to the facility; and
221.1(v) the final product is accepted for use;
221.2(8) waste and waste by-products for which the tax has been paid; and
221.3(9) daily cover for landfills that has been approved in writing by the Minnesota
221.4Pollution Control Agency.
221.5EFFECTIVE DATE.This section is effective the day following final enactment.
221.6 Sec. 14. Minnesota Statutes 2014, section 297I.05, subdivision 2, is amended to read:
221.7 Subd. 2.
221.8
221.9percent of gross premiums less return premiums on all direct business received by the
221.10insurer or agents of the insurer in Minnesota, in cash or otherwise, during the year.
221.11EFFECTIVE DATE.This section is effective the day following final enactment.
221.12 Sec. 15. Minnesota Statutes 2014, section 297I.10, subdivision 1, is amended to read:
221.13 Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct
221.14a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
221.15premiums, less return premiums, on all direct business received by any licensed foreign or
221.16domestic fire insurance company on property in a city of the first class, or by its agents for
221.17it, in cash or otherwise.
221.18(b) By July 31 and December 31 of each year, the commissioner
221.19
221.20total amount of the surcharge on the premiums collected within that city since the previous
221.21payment.
221.22(c) The treasurer of the city shall place the money received under this subdivision
221.23in a special account or fund to defray all or a portion of the employer contribution
221.24requirement of public employees police and fire plan coverage for city firefighters.
221.25EFFECTIVE DATE.This section is effective the day following final enactment.
221.26 Sec. 16. Minnesota Statutes 2014, section 297I.10, subdivision 3, is amended to read:
221.27 Subd. 3. Appropriation. The amount necessary to make the payments required
221.28under this section is appropriated to the commissioner
221.29the general fund.
221.30EFFECTIVE DATE.This section is effective the day following final enactment.
222.1 Sec. 17. Minnesota Statutes 2014, section 298.01, subdivision 3b, is amended to read:
222.2 Subd. 3b. Deductions. (a) For purposes of determining taxable income under
222.3subdivision 3, the deductions from gross income include only those expenses necessary
222.4to convert raw ores to marketable quality. Such expenses include costs associated with
222.5refinement but do not include expenses such as transportation, stockpiling, marketing, or
222.6marine insurance that are incurred after marketable ores are produced, unless the expenses
222.7are included in gross income. The allowable deductions from a mine or plant that mines
222.8and produces more than one mineral, metal, or energy resource must be determined
222.9separately for the purposes of computing the deduction in section
222.10clause (8). These deductions may be combined on one occupation tax return to arrive at
222.11the deduction from gross income for all production.
222.12(b) The provisions of section
222.13clauses (6) and
222.14EFFECTIVE DATE.This section is effective the day following final enactment.
222.15 Sec. 18. Minnesota Statutes 2014, section 298.01, subdivision 4c, is amended to read:
222.16 Subd. 4c. Special deductions; net operating loss.
222.17taxable income under subdivision 4, the provisions of section
222.18clauses (6)
222.19income.
222.20
222.21
222.22
222.23
222.24
222.25EFFECTIVE DATE.This section is effective the day following final enactment.
222.29 Section 1. Minnesota Statutes 2014, section 13.51, subdivision 2, is amended to read:
222.30 Subd. 2. Income property assessment data. The following data collected by
222.31political subdivisions and the state from individuals or business entities concerning
222.32income properties are classified as private or nonpublic data pursuant to section
222.33subdivisions 9
222.34(a) detailed income and expense figures;
223.1(b) average vacancy factors;
223.2(c) verified net rentable areas or net usable areas, whichever is appropriate;
223.3(d) anticipated income and expenses;
223.4(e) projected vacancy factors; and
223.5(f) lease information.
223.6EFFECTIVE DATE.This section is effective the day following final enactment.
223.7 Sec. 2. Minnesota Statutes 2014, section 270.071, subdivision 2, is amended to read:
223.8 Subd. 2. Air commerce.
223.9of persons or property for hire in interstate, intrastate, or international transportation
223.10on regularly scheduled flights or on intermittent or irregularly timed flights by airline
223.11companies and includes transportation by any airline company making three or more
223.12flights in or out of Minnesota, or within Minnesota, during a calendar year.
223.13
223.14
223.15
223.16
223.17
223.18
223.19
223.20EFFECTIVE DATE.This section is effective for assessment year 2017 and
223.21thereafter.
223.22 Sec. 3. Minnesota Statutes 2014, section 270.071, subdivision 7, is amended to read:
223.23 Subd. 7. Flight property. "Flight property" means all aircraft and flight equipment
223.24used in connection therewith, including spare flight equipment. Flight property also
223.25includes computers and computer software used in operating, controlling, or regulating
223.26aircraft and flight equipment. Flight property does not include aircraft with a maximum
223.27takeoff weight of less than 30,000 pounds.
223.28EFFECTIVE DATE.This section is effective for assessment year 2017 and
223.29thereafter.
223.30 Sec. 4. Minnesota Statutes 2014, section 270.071, subdivision 8, is amended to read:
223.31 Subd. 8. Person. "Person" means
223.32
224.1
224.2trust, estate, fiduciary, partnership, company, corporation, limited liability company,
224.3association, governmental unit or agency, public or private organization of any kind,
224.4or other legal entity.
224.5EFFECTIVE DATE.This section is effective for assessment year 2017 and
224.6thereafter.
224.7 Sec. 5. Minnesota Statutes 2014, section 270.071, is amended by adding a subdivision
224.8to read:
224.9 Subd. 10. Intermittent or irregularly timed flights. "Intermittently or irregularly
224.10timed flights" means any flight in which the departure time, departure location, and arrival
224.11location are specifically negotiated with the customer or the customer's representative,
224.12including but not limited to charter flights.
224.13EFFECTIVE DATE.This section is effective for assessment year 2017 and
224.14thereafter.
224.15 Sec. 6. Minnesota Statutes 2014, section 270.072, subdivision 2, is amended to read:
224.16 Subd. 2. Assessment of flight property. Flight property that is owned by, or is
224.17leased, loaned, or otherwise made available to an airline company operating in Minnesota
224.18shall be assessed and appraised annually by the commissioner with reference to its value
224.19on January 2 of the assessment year in the manner prescribed by sections
224.21
224.22
224.23EFFECTIVE DATE.This section is effective for assessment year 2017 and
224.24thereafter.
224.25 Sec. 7. Minnesota Statutes 2014, section 270.072, subdivision 3, is amended to read:
224.26 Subd. 3. Report by airline company. (a) Each year, on or before July 1, every
224.27airline company engaged in air commerce in this state shall file with the commissioner a
224.28report under oath setting forth specifically the information prescribed by the commissioner
224.29to enable the commissioner to make the assessment required in sections
224.31
224.32
225.1 (b) The commissioner shall prescribe the content, format, and manner of the report
225.2pursuant to section 270C.30, except that a "law administered by the commissioner"
225.3includes the property tax laws. If a report is made by electronic means, the taxpayer's
225.4signature is defined pursuant to section 270C.304, except that a "law administered by the
225.5commissioner" includes the property tax laws.
225.6EFFECTIVE DATE.The amendment to paragraph (a) is effective for reports
225.7filed in 2017 and thereafter. The amendment adding paragraph (b) is effective the day
225.8following final enactment.
225.9 Sec. 8. Minnesota Statutes 2014, section 270.072, is amended by adding a subdivision
225.10to read:
225.11 Subd. 3a. Commissioner filed reports. If an airline company fails to file a report
225.12required by subdivision 3, the commissioner may, from information in the commissioner's
225.13possession or obtainable by the commissioner, make and file a report for the airline
225.14company, or may issue a notice of net tax capacity and tax under section 270.075,
225.15subdivision 2.
225.16EFFECTIVE DATE.This section is effective for assessment year 2017 and
225.17thereafter.
225.18 Sec. 9. Minnesota Statutes 2014, section 270.12, is amended by adding a subdivision
225.19to read:
225.20 Subd. 6. Reassessment orders. If the State Board of Equalization determines that a
225.21considerable amount of property has been undervalued or overvalued compared to like
225.22property such that the assessment is grossly unfair or inequitable, the State Board of
225.23Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders
225.24to the county assessor to reassess all or any part of a parcel in a county.
225.25EFFECTIVE DATE.This section is effective for assessment year 2017 and
225.26thereafter.
225.27 Sec. 10. Minnesota Statutes 2014, section 270C.89, subdivision 1, is amended to read:
225.28 Subdivision 1. Initial report. Each county assessor shall file by April 1 with the
225.29commissioner a copy of the abstract that will be acted upon by the local and county
225.30boards of review. The abstract must list the real and personal property in the county
225.31itemized by assessment districts. The assessor of each county in the state shall file with
225.32the commissioner, within ten working days following final action of the local board of
226.1review or equalization and within five days following final action of the county board of
226.2equalization, any changes made by the local or county board. The information must be
226.3filed in the manner prescribed by the commissioner.
226.4
226.5EFFECTIVE DATE.This section is effective for county boards of appeal and
226.6equalization meetings held in 2017 and thereafter.
226.7 Sec. 11. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:
226.8 Subd. 9. Personal property; exceptions. Except for the taxable personal property
226.9enumerated below, all personal property and the property described in section
226.10subdivision 1
226.11The following personal property shall be taxable:
226.12(a) personal property which is part of (1) an electric generating, transmission, or
226.13distribution system
226.14
226.15or chilled water for heating or cooling buildings and structures;
226.16(b) railroad docks and wharves which are part of the operating property of a railroad
226.17company as defined in section
226.18(c) personal property defined in section
226.19(d) leasehold or other personal property interests which are taxed pursuant to section
226.21providing the property is taxable as if the lessee or user were the fee owner;
226.22(e) manufactured homes and sectional structures, including storage sheds, decks,
226.23and similar removable improvements constructed on the site of a manufactured home,
226.24sectional structure, park trailer or travel trailer as provided in section
226.258
226.26(f) flight property as defined in section
226.27EFFECTIVE DATE.This section is effective the day following final enactment.
226.28 Sec. 12. Minnesota Statutes 2014, section 272.029, subdivision 2, is amended to read:
226.29 Subd. 2. Definitions. (a) For the purposes of this section, the term:
226.30(1) "wind energy conversion system" has the meaning given in section 216C.06,
226.31subdivision 19, and also includes a substation that is used and owned by one or more
226.32wind energy conversion facilities;
227.1(2) "large scale wind energy conversion system" means a wind energy conversion
227.2system of more than 12 megawatts, as measured by the nameplate capacity of the system
227.3or as combined with other systems as provided in paragraph (b);
227.4(3) "medium scale wind energy conversion system" means a wind energy conversion
227.5system of over two and not more than 12 megawatts, as measured by the nameplate
227.6capacity of the system or as combined with other systems as provided in paragraph (b); and
227.7(4) "small scale wind energy conversion system" means a wind energy conversion
227.8system of two megawatts and under, as measured by the nameplate capacity of the system
227.9or as combined with other systems as provided in paragraph (b).
227.10(b) For systems installed and contracted for after January 1, 2002, the total size of a
227.11wind energy conversion system under this subdivision shall be determined according to
227.12this paragraph. Unless the systems are interconnected with different distribution systems,
227.13the nameplate capacity of one wind energy conversion system shall be combined with the
227.14nameplate capacity of any other wind energy conversion system that is:
227.15(1) located within five miles of the wind energy conversion system;
227.16(2) constructed within the same
227.17conversion system; and
227.18(3) under common ownership.
227.19In the case of a dispute, the commissioner of commerce shall determine the total size
227.20of the system, and shall draw all reasonable inferences in favor of combining the systems.
227.21(c) In making a determination under paragraph (b), the commissioner of commerce
227.22may determine that two wind energy conversion systems are under common ownership
227.23when the underlying ownership structure contains similar persons or entities, even if the
227.24ownership shares differ between the two systems. Wind energy conversion systems are
227.25not under common ownership solely because the same person or entity provided equity
227.26financing for the systems.
227.27EFFECTIVE DATE.This section is effective for reports filed in 2017 and thereafter.
227.28 Sec. 13. Minnesota Statutes 2014, section 272.029, is amended by adding a subdivision
227.29to read:
227.30 Subd. 8. Extension. The commissioner may, for good cause, extend the time for
227.31filing the report required by subdivision 4. The extension must not exceed 15 days.
227.32EFFECTIVE DATE.This section is effective for reports filed in 2017 and thereafter.
227.33 Sec. 14. Minnesota Statutes 2014, section 273.032, is amended to read:
228.1273.032 MARKET VALUE DEFINITION.
228.2 (a) Unless otherwise provided, for the purpose of determining any property tax
228.3levy limitation based on market value or any limit on net debt, the issuance of bonds,
228.4certificates of indebtedness, or capital notes based on market value, any qualification to
228.5receive state aid based on market value, or any state aid amount based on market value,
228.6the terms "market value," "estimated market value," and "market valuation," whether
228.7equalized or unequalized, mean the estimated market value of taxable property within the
228.8local unit of government before any of the following or similar adjustments for:
228.9 (1) the market value exclusions under:
228.10 (i) section
228.11 (ii) section
228.12 (iii) section
228.13properties);
228.14 (iv) section
228.15
228.16
228.17caregiver); or
228.18
228.19 (2) the deferment of value under:
228.20 (i) the Minnesota Agricultural Property Tax Law, section
228.21 (ii) the Aggregate Resource Preservation Law, section
228.22 (iii) the Minnesota Open Space Property Tax Law, section
228.23 (iv) the rural preserves property tax program, section
228.24 (v) the Metropolitan Agricultural Preserves Act, section
228.25 (3) the adjustments to tax capacity for:
228.26 (i) tax increment financing under sections
228.27 (ii) fiscal disparities under chapter 276A or 473F; or
228.28 (iii) powerline credit under section
228.29 (b) Estimated market value under paragraph (a) also includes the market value
228.30of tax-exempt property if the applicable law specifically provides that the limitation,
228.31qualification, or aid calculation includes tax-exempt property.
228.32 (c) Unless otherwise provided, "market value," "estimated market value," and
228.33"market valuation" for purposes of property tax levy limitations and calculation of state
228.34aid, refer to the estimated market value for the previous assessment year and for purposes
228.35of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes
228.36refer to the estimated market value as last finally equalized.
229.1 (d) For purposes of a provision of a home rule charter or of any special law that is not
229.2codified in the statutes and that imposes a levy limitation based on market value or any limit
229.3on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
229.4value, the terms "market value," "taxable market value," and "market valuation," whether
229.5equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
229.6EFFECTIVE DATE.This section is effective the day following final enactment.
229.7 Sec. 15. Minnesota Statutes 2014, section 273.061, subdivision 7, is amended to read:
229.8 Subd. 7. Division of duties between local and county assessor. The duty of the
229.9duly appointed local assessor shall be to view and appraise the value of all property as
229.10provided by law, but all the book work shall be done by the county assessor, or the
229.11assessor's assistants, and the value of all property subject to assessment and taxation shall
229.12be determined by the county assessor, except as otherwise hereinafter provided. If directed
229.13by the county assessor, the local assessor
229.14subdivision 8, clause (16), and must enter construction and valuation data into the records
229.15in the manner prescribed by the county assessor.
229.16EFFECTIVE DATE.This section is effective for assessment year 2017 and
229.17thereafter.
229.18 Sec. 16. Minnesota Statutes 2014, section 273.08, is amended to read:
229.19273.08 ASSESSOR'S DUTIES.
229.20The assessor shall actually view, and determine the market value of each tract or lot
229.21of real property listed for taxation, including the value of all improvements and structures
229.22thereon, at maximum intervals of five years and shall enter the value opposite each
229.23description. When directed by the county assessor, local assessors must enter construction
229.24and valuation data into the records in the manner prescribed by the county assessor.
229.25EFFECTIVE DATE.This section is effective for assessment year 2017 and
229.26thereafter.
229.27 Sec. 17. Minnesota Statutes 2014, section 273.121, is amended by adding a subdivision
229.28to read:
229.29 Subd. 3. Compliance. A county assessor, or a city assessor having the powers
229.30of a county assessor, who does not comply with the timely notice requirement under
229.31subdivision 1 must:
230.1(1) mail an additional valuation notice to each person who was not provided timely
230.2notice; and
230.3(2) convene a supplemental local board of appeal and equalization or local review
230.4session no sooner than ten days after sending the additional notices required by clause (1).
230.5EFFECTIVE DATE.This section is effective for valuation notices sent in 2017
230.6and thereafter.
230.7 Sec. 18. Minnesota Statutes 2014, section 273.13, subdivision 22, is amended to read:
230.8 Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b)
230.9and (c), real estate which is residential and used for homestead purposes is class 1a. In the
230.10case of a duplex or triplex in which one of the units is used for homestead purposes, the
230.11entire property is deemed to be used for homestead purposes. The market value of class 1a
230.12property must be determined based upon the value of the house, garage, and land.
230.13 The first $500,000 of market value of class 1a property has a net classification rate
230.14of one percent of its market value; and the market value of class 1a property that exceeds
230.15$500,000 has a classification rate of 1.25 percent of its market value.
230.16 (b) Class 1b property includes homestead real estate or homestead manufactured
230.17homes used for the purposes of a homestead by:
230.18 (1) any person who is blind as defined in section
230.19the blind person's spouse;
230.20 (2) any person who is permanently and totally disabled or by the disabled person and
230.21the disabled person's spouse; or
230.22 (3) the surviving spouse of a permanently and totally disabled veteran homesteading
230.23a property classified under this paragraph for taxes payable in 2008.
230.24 Property is classified and assessed under clause (2) only if the government agency or
230.25income-providing source certifies, upon the request of the homestead occupant, that the
230.26homestead occupant satisfies the disability requirements of this paragraph, and that the
230.27property is not eligible for the valuation exclusion under subdivision 34.
230.28 Property is classified and assessed under paragraph (b) only if the commissioner
230.29of revenue or the county assessor certifies that the homestead occupant satisfies the
230.30requirements of this paragraph.
230.31 Permanently and totally disabled for the purpose of this subdivision means a
230.32condition which is permanent in nature and totally incapacitates the person from working
230.33at an occupation which brings the person an income. The first $50,000 market value of
230.34class 1b property has a net classification rate of .45 percent of its market value. The
231.1remaining market value of class 1b property
231.2classified as class 1a or class 2a property, whichever is appropriate
231.3 (c) Class 1c property is commercial use real and personal property that abuts public
231.4water as defined in section
231.5seasonal residential occupancy for recreational purposes but not devoted to commercial
231.6purposes for more than 250 days in the year preceding the year of assessment, and that
231.7includes a portion used as a homestead by the owner, which includes a dwelling occupied
231.8as a homestead by a shareholder of a corporation that owns the resort, a partner in a
231.9partnership that owns the resort, or a member of a limited liability company that owns the
231.10resort even if the title to the homestead is held by the corporation, partnership, or limited
231.11liability company. For purposes of this paragraph, property is devoted to a commercial
231.12purpose on a specific day if any portion of the property, excluding the portion used
231.13exclusively as a homestead, is used for residential occupancy and a fee is charged for
231.14residential occupancy. Class 1c property must contain three or more rental units. A "rental
231.15unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping
231.16site equipped with water and electrical hookups for recreational vehicles. Class 1c property
231.17must provide recreational activities such as the rental of ice fishing houses, boats and
231.18motors, snowmobiles, downhill or cross-country ski equipment; provide marina services,
231.19launch services, or guide services; or sell bait and fishing tackle. Any unit in which the
231.20right to use the property is transferred to an individual or entity by deeded interest, or the
231.21sale of shares or stock, no longer qualifies for class 1c even though it may remain available
231.22for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c
231.23is also class 1c, regardless of the term of the rental agreement, as long as the use of the
231.24camping pad does not exceed 250 days. If the same owner owns two separate parcels that
231.25are located in the same township, and one of those properties is classified as a class 1c
231.26property and the other would be eligible to be classified as a class 1c property if it was
231.27used as the homestead of the owner, both properties will be assessed as a single class 1c
231.28property; for purposes of this sentence, properties are deemed to be owned by the same
231.29owner if each of them is owned by a limited liability company, and both limited liability
231.30companies have the same membership. The portion of the property used as a homestead
231.31is class 1a property under paragraph (a). The remainder of the property is classified as
231.32follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value
231.33is tier II, and any remaining market value is tier III. The classification rates for class 1c
231.34are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and
231.35personal property devoted to temporary and seasonal residential occupancy for recreation
231.36purposes in which all or a portion of the property was devoted to commercial purposes for
232.1not more than 250 days in the year preceding the year of assessment desiring classification
232.2as class 1c, must submit a declaration to the assessor designating the cabins or units
232.3occupied for 250 days or less in the year preceding the year of assessment by January 15 of
232.4the assessment year. Those cabins or units and a proportionate share of the land on which
232.5they are located must be designated as class 1c as otherwise provided. The remainder of
232.6the cabins or units and a proportionate share of the land on which they are located must be
232.7designated as class 3a commercial. The owner of property desiring designation as class
232.81c property must provide guest registers or other records demonstrating that the units for
232.9which class 1c designation is sought were not occupied for more than 250 days in the
232.10year preceding the assessment if so requested. The portion of a property operated as a
232.11(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
232.12nonresidential facility operated on a commercial basis not directly related to temporary
232.13and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
232.14 (d) Class 1d property includes structures that meet all of the following criteria:
232.15 (1) the structure is located on property that is classified as agricultural property under
232.16section
232.17 (2) the structure is occupied exclusively by seasonal farm workers during the time
232.18when they work on that farm, and the occupants are not charged rent for the privilege of
232.19occupying the property, provided that use of the structure for storage of farm equipment
232.20and produce does not disqualify the property from classification under this paragraph;
232.21 (3) the structure meets all applicable health and safety requirements for the
232.22appropriate season; and
232.23 (4) the structure is not salable as residential property because it does not comply
232.24with local ordinances relating to location in relation to streets or roads.
232.25 The market value of class 1d property has the same classification rates as class
232.261a property under paragraph (a).
232.27EFFECTIVE DATE.This section is effective the day following final enactment.
232.28 Sec. 19. Minnesota Statutes 2014, section 273.33, subdivision 1, is amended to read:
232.29 Subdivision 1. Listing and assessment in county. The personal property of express,
232.30stage and transportation companies, and of pipeline companies engaged in the business
232.31of transporting
232.32otherwise provided by law, shall be listed and assessed in the county, town or district
232.33where the same is usually kept.
232.34EFFECTIVE DATE.This section is effective the day following final enactment.
233.1 Sec. 20. Minnesota Statutes 2014, section 273.33, subdivision 2, is amended to read:
233.2 Subd. 2. Listing and assessment by commissioner. The personal property,
233.3consisting of the pipeline system of mains, pipes, and equipment attached thereto, of
233.4pipeline companies and others engaged in the operations or business of transporting
233.5
233.6with and assessed by the commissioner of revenue and the values provided to the
233.7city or county assessor by order. This subdivision shall not apply to the assessment of
233.8the products transported through the pipelines nor to the lines of local commercial gas
233.9companies engaged primarily in the business of distributing
233.10retail nor to pipelines used by the owner thereof to supply
233.11products exclusively for such owner's own consumption and not for resale to others. If
233.12more than 85 percent of the
233.13over the pipeline is used for the owner's own consumption and not for resale to others,
233.14then this subdivision shall not apply; provided, however, that in that event, the pipeline
233.15shall be assessed in proportion to the percentage of
233.16such pipeline that is not used for the owner's own consumption. On or before August 1,
233.17the commissioner shall certify to the auditor of each county, the amount of such personal
233.18property assessment against each company in each district in which such property is
233.19located. If the commissioner determines that the amount of personal property assessment
233.20certified on or before August 1 is in error, the commissioner may issue a corrected
233.21certification on or before October 1. The commissioner may correct errors that are merely
233.22clerical in nature until December 31.
233.23EFFECTIVE DATE.This section is effective the day following final enactment.
233.24 Sec. 21. Minnesota Statutes 2014, section 273.372, subdivision 1, is amended to read:
233.25 Subdivision 1. Scope. (a) As provided in this section, an appeal by a utility or
233.26railroad company concerning property for which the commissioner of revenue has provided
233.27the city or county assessor with valuations by order, or for which the commissioner
233.28has recommended values to the city or county assessor, must be brought against the
233.29commissioner
233.30Service must be made on the commissioner only, and not on the county or taxing district.
233.31(b) This section governs administrative appeals and appeals to court of a claim that
233.32utility or railroad operating property has been partially, unfairly, or unequally assessed,
233.33or assessed at a valuation greater than its real or actual value, misclassified, or that the
233.34property is exempt. This section applies only to property described in sections
233.35subdivision 1
234.1capacities that have been provided to the city or county by the commissioner and which
234.2have not been changed by city or county. If the taxable net tax capacity being appealed is
234.3not the taxable net tax capacity established by the commissioner, or if the appeal claims
234.4that the tax rate applied against the parcel is incorrect, or that the tax has been paid, this
234.5section does not apply.
234.6EFFECTIVE DATE.This section is effective for appeals of valuations made in
234.7assessment year 2017 and thereafter.
234.8 Sec. 22. Minnesota Statutes 2014, section 273.372, subdivision 2, is amended to read:
234.9 Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required
234.10to be brought against the commissioner under this section, the petition initiating the appeal
234.11must be served on the commissioner and must be filed with the Tax Court in Ramsey
234.12County, as provided in paragraph (b) or (c).
234.13(b) If the appeal to court is from an order of the commissioner, it must be brought
234.14under chapter 271 and filed within the time period prescribed in section 271.06,
234.15subdivision 2, except that when the provisions of this section conflict with chapter
234.16271 or 278, this section prevails. In addition, the petition must include all the parcels
234.17encompassed by that order which the petitioner claims have been partially, unfairly,
234.18or unequally assessed, assessed at a valuation greater than their real or actual value,
234.19misclassified, or are exempt. For this purpose, an order of the commissioner is either (1) a
234.20certification or notice of value by the commissioner for property described in subdivision
234.211, or (2) the final determination by the commissioner of either an administrative appeal
234.22conference or informal administrative appeal described in subdivision 4.
234.23(c) If the appeal is from the tax that results from implementation of the
234.24commissioner's order, certification, or recommendation, it must be brought under
234.25chapter 278, and the provisions in that chapter apply, except that service shall be on the
234.26commissioner only and not on the local officials specified in section
234.27and if any other provision of this section conflicts with chapter 278, this section prevails.
234.28In addition, the petition must include either all the utility parcels or all the railroad parcels
234.29in the state in which the petitioner claims an interest and which the petitioner claims have
234.30been partially, unfairly, or unequally assessed, assessed at a valuation greater than their
234.31real or actual value, misclassified, or are exempt.
234.32EFFECTIVE DATE.This section is effective for assessment year 2017 and
234.33thereafter.
235.1 Sec. 23. Minnesota Statutes 2014, section 273.372, subdivision 4, is amended to read:
235.2 Subd. 4. Administrative appeals. (a) Companies that submit the reports under
235.3section
235.4by the commissioner in an extension, may appeal administratively to the commissioner
235.5prior to bringing an action in court.
235.6 (b) Companies
235.7written request
235.8days after the notice date of the commissioner's valuation certification or other notice
235.9to the company
235.10term "notice date" means the date of the valuation certification, commissioner's order,
235.11recommendation, or other notice.
235.12 (c)
235.13
235.14
235.15
235.16information:
235.17 (1) name and address of the company;
235.18 (2) the date;
235.19 (3) its Minnesota identification number;
235.20 (4) the assessment year or period involved;
235.21 (5) the findings in the valuation that the company disputes;
235.22 (6) a summary statement specifying its reasons for disputing each item; and
235.23 (7) the signature of the company's duly authorized agent or representative.
235.24 (d) When requested in writing and within the time allowed for filing an
235.25administrative appeal, the commissioner may extend the time for filing an appeal for a
235.26period of not more than 15 days from the expiration of the time for filing the appeal.
235.27
235.28telephone upon the commissioner's entire files and records and such further information as
235.29may be offered. The conference must be held no later than 20 days after the date of the
235.30
235.31
235.32conference the commissioner shall make a final determination of the matter and shall
235.33notify the company promptly of the determination. The conference is not a contested
235.34case hearing subject to chapter 14.
235.35
235.36
236.1
236.2
236.3
236.4
236.5
236.6EFFECTIVE DATE.This section is effective for assessment year 2017 and
236.7thereafter.
236.8 Sec. 24. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision
236.9to read:
236.10 Subd. 5. Agreement determining valuation. When it appears to be in the best
236.11interest of the state, the commissioner may settle any matter under consideration regarding
236.12an appeal filed under this section. The agreement must be in writing and signed by
236.13the commissioner and the company or the company's authorized representative. The
236.14agreement is final and conclusive, and except upon a showing of fraud, malfeasance,
236.15or misrepresentation of a material fact, the case may not be reopened as to the matters
236.16agreed upon.
236.17EFFECTIVE DATE.This section is effective for assessment year 2017 and
236.18thereafter.
236.19 Sec. 25. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision
236.20to read:
236.21 Subd. 6. Dismissal of administrative appeal. If a taxpayer files an administrative
236.22appeal from an order of the commissioner and also files an appeal to the tax court for
236.23that same order of the commissioner, the administrative appeal is dismissed and the
236.24commissioner is no longer required to make the determination of appeal under subdivision
236.254.
236.26EFFECTIVE DATE.This section is effective beginning with assessment year 2016.
236.27 Sec. 26. [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.
236.28After making the apportionment provided in Minnesota Rules, part 8100.0600, the
236.29commissioner must equalize the values of the operating structures to the level accepted by
236.30the State Board of Equalization if the appropriate sales ratio for each county, as conducted
236.31by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is
236.32outside the range accepted by the State Board of Equalization. The commissioner must
237.1not equalize the value of the operating structures if the sales ratio determined pursuant to
237.2this subdivision is within the range accepted by the State Board of Equalization.
237.3EFFECTIVE DATE.This section is effective beginning with assessment year 2016.
237.4 Sec. 27. Minnesota Statutes 2014, section 274.01, subdivision 1, is amended to read:
237.5 Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town
237.6board of a town, or the council or other governing body of a city, is the local board
237.7of appeal and equalization except (1) in cities whose charters provide for a board of
237.8equalization or (2) in any city or town that has transferred its local board of review power
237.9and duties to the county board as provided in subdivision 3. The county assessor shall
237.10fix a day and time when
237.11assessment districts of the county. Notwithstanding any law or city charter to the contrary,
237.12a city board of equalization shall be referred to as a local board of appeal and equalization.
237.13On or before February 15 of each year the assessor shall give written notice of the time
237.14to the city or town clerk. Notwithstanding the provisions of any charter to the contrary,
237.15the meetings must be held between April 1 and May 31 each year. The clerk shall give
237.16published and posted notice of the meeting at least ten days before the date of the meeting.
237.17 The board shall meet either at a central location within the county or at the office of
237.18the clerk to review the assessment and classification of property in the town or city. No
237.19changes in valuation or classification which are intended to correct errors in judgment by
237.20the county assessor may be made by the county assessor after the board has adjourned
237.21in those cities or towns that hold a local board of review; however, corrections of errors
237.22that are merely clerical in nature or changes that extend homestead treatment to property
237.23are permitted after adjournment until the tax extension date for that assessment year. The
237.24changes must be fully documented and maintained in the assessor's office and must be
237.25available for review by any person. A copy of the changes made during this period in
237.26those cities or towns that hold a local board of review must be sent to the county board no
237.27later than December 31 of the assessment year.
237.28 (b) The board shall determine whether the taxable property in the town or city has
237.29been properly placed on the list and properly valued by the assessor. If real or personal
237.30property has been omitted, the board shall place it on the list with its market value, and
237.31correct the assessment so that each tract or lot of real property, and each article, parcel,
237.32or class of personal property, is entered on the assessment list at its market value. No
237.33assessment of the property of any person may be raised unless the person has been
237.34duly notified of the intent of the board to do so. On application of any person feeling
237.35aggrieved, the board shall review the assessment or classification, or both, and correct
238.1it as appears just. The board may not make an individual market value adjustment or
238.2classification change that would benefit the property if the owner or other person having
238.3control over the property has refused the assessor access to inspect the property and the
238.4interior of any buildings or structures as provided in section
238.5shall not participate in any actions of the board which result in market value adjustments
238.6or classification changes to property owned by the board member, the spouse, parent,
238.7stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
238.8or niece of a board member, or property in which a board member has a financial interest.
238.9The relationship may be by blood or marriage.
238.10 (c) A local board may reduce assessments upon petition of the taxpayer but the total
238.11reductions must not reduce the aggregate assessment made by the county assessor by more
238.12than one percent. If the total reductions would lower the aggregate assessments made by
238.13the county assessor by more than one percent, none of the adjustments may be made. The
238.14assessor shall correct any clerical errors or double assessments discovered by the board
238.15without regard to the one percent limitation.
238.16 (d) A local board does not have authority to grant an exemption or to order property
238.17removed from the tax rolls.
238.18 (e) A majority of the members may act at the meeting, and adjourn from day to day
238.19until they finish hearing the cases presented. The assessor shall attend and take part in
238.20the proceedings, but must not vote. The county assessor, or an assistant delegated by the
238.21county assessor shall attend the meetings. The board shall list separately all omitted
238.22property added to the list by the board and all items of property increased or decreased,
238.23with the market value of each item of property, added or changed by the board. The
238.24county assessor shall enter all changes made by the board.
238.25 (f) Except as provided in subdivision 3, if a person fails to appear in person, by
238.26counsel, or by written communication before the board after being duly notified of the
238.27board's intent to raise the assessment of the property, or if a person feeling aggrieved by an
238.28assessment or classification fails to apply for a review of the assessment or classification,
238.29the person may not appear before the county board of appeal and equalization for a review.
238.30This paragraph does not apply if an assessment was made after the local board meeting, as
238.31provided in section
238.32market value at least five days before the local board meeting.
238.33 (g) The local board must complete its work and adjourn within 20 days from the
238.34time of convening stated in the notice of the clerk, unless a longer period is approved by
238.35the commissioner of revenue. No action taken after that date is valid. All complaints
238.36about an assessment or classification made after the meeting of the board must be heard
239.1and determined by the county board of equalization. A nonresident may, at any time,
239.2before the meeting of the board file written objections to an assessment or classification
239.3with the county assessor. The objections must be presented to the board at its meeting by
239.4the county assessor for its consideration.
239.5EFFECTIVE DATE.This section is effective the day following final enactment.
239.6 Sec. 28. Minnesota Statutes 2014, section 274.13, subdivision 1, is amended to read:
239.7 Subdivision 1. Members; meetings; rules for equalizing assessments. The county
239.8commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be
239.9present, the deputy county auditor, or, if there is no deputy, the court administrator of the
239.10district court, shall form a board for the equalization of the assessment of the property
239.11of the county, including the property of all cities whose charters provide for a board of
239.12equalization. This board shall be referred to as the county board of appeal and equalization.
239.13The board shall meet annually, on the date specified in section
239.14auditor. Each member shall take an oath to fairly and impartially perform duties as a
239.15member. Members shall not participate in any actions of the board which result in market
239.16value adjustments or classification changes to property owned by the board member, the
239.17spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle,
239.18aunt, nephew, or niece of a board member, or property in which a board member has a
239.19financial interest. The relationship may be by blood or marriage. The board shall examine
239.20and compare the returns of the assessment of property of the towns or districts, and
239.21equalize them so that each tract or lot of real property and each article or class of personal
239.22property is entered on the assessment list at its market value, subject to the following rules:
239.23 (1) The board shall raise the valuation of each tract or lot of real property which
239.24in its opinion is returned below its market value to the sum believed to be its market
239.25value. The board must first give notice of intention to raise the valuation to the person in
239.26whose name it is assessed, if the person is a resident of the county. The notice must fix
239.27a time and place for a hearing.
239.28 (2) The board shall reduce the valuation of each tract or lot which in its opinion is
239.29returned above its market value to the sum believed to be its market value.
239.30 (3) The board shall raise the valuation of each class of personal property which
239.31in its opinion is returned below its market value to the sum believed to be its market
239.32value. It shall raise the aggregate value of the personal property of individuals, firms, or
239.33corporations, when it believes that the aggregate valuation, as returned, is less than the
239.34market value of the taxable personal property possessed by the individuals, firms, or
240.1corporations, to the sum it believes to be the market value. The board must first give notice
240.2to the persons of intention to do so. The notice must set a time and place for a hearing.
240.3 (4) The board shall reduce the valuation of each class of personal property that
240.4is returned above its market value to the sum it believes to be its market value. Upon
240.5complaint of a party aggrieved, the board shall reduce the aggregate valuation of the
240.6individual's personal property, or of any class of personal property for which the individual
240.7is assessed, which in its opinion has been assessed at too large a sum, to the sum it believes
240.8was the market value of the individual's personal property of that class.
240.9 (5) The board must not reduce the aggregate value of all the property of its county, as
240.10submitted to the county board of equalization, with the additions made by the auditor under
240.11this chapter, by more than one percent of its whole valuation. The board may raise the
240.12aggregate valuation of real property, and of each class of personal property, of the county,
240.13or of any town or district of the county, when it believes it is below the market value of the
240.14property, or class of property, to the aggregate amount it believes to be its market value.
240.15 (6) The board shall change the classification of any property which in its opinion
240.16is not properly classified.
240.17 (7) The board does not have the authority to grant an exemption or to order property
240.18removed from the tax rolls.
240.19 (8) The board may not make an individual market value adjustment or classification
240.20change that would benefit property if the owner or other person having control over the
240.21property has refused the assessor access to inspect the property and the interior of any
240.22buildings or structures as provided in section 273.20.
240.23EFFECTIVE DATE.This section is effective for county board of appeal and
240.24equalization meetings in 2017 and thereafter.
240.25 Sec. 29. Minnesota Statutes 2014, section 274.135, subdivision 3, is amended to read:
240.26 Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts
240.27county boards of appeal and equalization meetings must provide proof to the commissioner
240.28by
240.29requirements of subdivision 2.
240.30was a quorum of voting members at each meeting of the board of appeal and equalization
240.31in the
240.32deemed to have transferred its board of appeal and equalization powers to the special
240.33board of equalization appointed pursuant to section
240.34with the following year's assessment and continuing unless the powers are reinstated
240.35under paragraph (c). A county that does not comply with the requirements of subdivision
241.12 and has not appointed a special board of equalization shall appoint a special board of
241.2equalization before the following year's assessment.
241.3 (b) The county shall notify the taxpayers when the board of appeal and equalization
241.4for a county has been transferred to the special board of equalization under this subdivision
241.5and, prior to the meeting time of the special board of equalization, the county shall make
241.6available to those taxpayers a procedure for a review of the assessments, including, but
241.7not limited to, open book meetings. This alternate review process must take place in
241.8April and May.
241.9 (c) A county board whose powers are transferred to the special board of equalization
241.10under this subdivision may be reinstated by resolution of the county board and upon proof
241.11of compliance with the requirements of subdivision 2. The resolution and proofs must
241.12be provided to the commissioner by
241.13the
241.14(d) If a person who was entitled to appeal to the county board of appeal and
241.15equalization or to the county special board of equalization is not able to do so in a
241.16particular year because the county board or special board did not meet the quorum and
241.17training requirements in this section and section
241.18was not appointed, that person may instead appeal to the commissioner of revenue,
241.19provided that the appeal is received by the commissioner prior to August 1. The appeal
241.20is not subject to either chapter 14 or section
241.21an appropriate order to the county assessor in response to each timely appeal, either
241.22upholding or changing the valuation or classification of the property. Prior to October 1 of
241.23each year, the commissioner must charge and bill the county where the property is located
241.24$500 for each tax parcel covered by an order issued under this paragraph in that year.
241.25Amounts received by the commissioner under this paragraph must be deposited in the
241.26state's general fund. If payment of a billed amount is not received by the commissioner
241.27before December 1 of the year when billed, the commissioner must deduct that unpaid
241.28amount from any state aid the commissioner would otherwise pay to the county under
241.29chapter 477A in the next year. Late payments may either be returned to the county
241.30uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid
241.31paid to the county under chapter 477A must be adjusted within 12 months to eliminate any
241.32reduction that occurred because the payment was late. Amounts needed to make these
241.33adjustments are included in the appropriation under section
241.34EFFECTIVE DATE.This section is effective for county boards of appeal and
241.35equalization meetings held in 2017 and thereafter.
242.1 Sec. 30. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:
242.2 Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the
242.3contrary, on or before September 30, each county and each home rule charter or statutory
242.4city shall certify to the county auditor the proposed property tax levy for taxes payable in
242.5the following year.
242.6 (b) Notwithstanding any law or charter to the contrary, on or before September 15,
242.7each town and each special taxing district shall adopt and certify to the county auditor a
242.8proposed property tax levy for taxes payable in the following year. For towns, the final
242.9certified levy shall also be considered the proposed levy.
242.10 (c) On or before September 30, each school district that has not mutually agreed
242.11with its home county to extend this date shall certify to the county auditor the proposed
242.12property tax levy for taxes payable in the following year. Each school district that has
242.13agreed with its home county to delay the certification of its proposed property tax levy
242.14must certify its proposed property tax levy for the following year no later than October
242.157. The school district shall certify the proposed levy as:
242.16 (1) a specific dollar amount by school district fund, broken down between
242.17voter-approved and non-voter-approved levies and between referendum market value
242.18and tax capacity levies; or
242.19 (2) the maximum levy limitation certified by the commissioner of education
242.20according to section
242.21 (d) If the board of estimate and taxation or any similar board that establishes
242.22maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
242.23property tax levies for funds under its jurisdiction by charter to the county auditor by the
242.24date specified in paragraph (a), the city shall be deemed to have certified its levies for
242.25those taxing jurisdictions.
242.26 (e) For purposes of this section, "special taxing district" means a special taxing
242.27district as defined in section
242.28under chapter 124 or 136D, joint powers boards established under sections
242.30also special taxing districts for purposes of this section.
242.31(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
242.32tax levy under this subdivision, the taxing authority shall announce the time and place
242.33of
242.34discussed and at which the public will be allowed to speak. The time and place of those
242.35meetings must be included in the proceedings or summary of proceedings published in the
242.36official newspaper of the taxing authority under section
243.1EFFECTIVE DATE.This section is effective the day following final enactment.
243.2 Sec. 31. Minnesota Statutes 2014, section 275.62, subdivision 2, is amended to read:
243.3 Subd. 2. Local governments required to report. For purposes of this section,
243.4"local governmental unit" means a county, home rule charter or statutory city with a
243.5population greater than 2,500
243.6
243.7
243.8EFFECTIVE DATE.This section is effective the day following final enactment.
243.9 Sec. 32. Minnesota Statutes 2014, section 278.01, subdivision 1, is amended to read:
243.10 Subdivision 1. Determination of validity. (a) Any person having personal property,
243.11or any estate, right, title, or interest in or lien upon any parcel of land, who claims that
243.12such property has been partially, unfairly, or unequally assessed in comparison with other
243.13property in the (1) city, or (2) county, or (3) in the case of a county containing a city of the
243.14first class, the portion of the county excluding the first class city, or that the parcel has
243.15been assessed at a valuation greater than its real or actual value, or that the tax levied
243.16against the same is illegal, in whole or in part, or has been paid, or that the property is
243.17exempt from the tax so levied, may have the validity of the claim, defense, or objection
243.18determined by the district court of the county in which the tax is levied or by the Tax
243.19Court by serving one copy of a petition for such determination upon the county auditor,
243.20one copy on the county attorney, one copy on the county treasurer, and three copies on the
243.21county assessor. The county assessor shall immediately forward one copy of the petition
243.22to the appropriate governmental authority in a home rule charter or statutory city or town
243.23in which the property is located if that city or town employs its own certified assessor.
243.24A copy of the petition shall also be forwarded by the assessor to the school board of the
243.25school district in which the property is located.
243.26(b) In counties where the office of county treasurer has been combined with the
243.27office of county auditor, the county may elect to require the petitioner to serve the number
243.28of copies as determined by the county. The county assessor shall immediately forward one
243.29copy of the petition to the appropriate governmental authority in a home rule charter or
243.30statutory city or town in which the property is located if that city or town employs its own
243.31certified assessor. A list of petitioned properties, including the name of the petitioner, the
243.32identification number of the property, and the estimated market value, shall be sent on
243.33or before the first day of July by the county auditor/treasurer to the school board of the
243.34school district in which the property is located.
244.1(c) For all counties, the petitioner must file the copies with proof of service, in the
244.2office of the court administrator of the district court on or before April 30 of the year in
244.3which the tax becomes payable. A petition for determination under this section may be
244.4transferred by the district court to the Tax Court. An appeal may also be taken to the Tax
244.5Court under chapter 271 at any time following receipt of the valuation notice that county
244.6assessors or city assessors having the powers of a county assessor are required by section
244.8year, but prior to May 1 of the year in which the taxes are payable.
244.9EFFECTIVE DATE.This section is effective the day following final enactment.
244.10 Sec. 33. Minnesota Statutes 2014, section 282.01, subdivision 1a, is amended to read:
244.11 Subd. 1a. Conveyance to public entities. (a) Upon written request from a state
244.12agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited land
244.13must be withheld from sale or lease to others for a maximum of six months. The request
244.14must be submitted to the county auditor. Upon receipt, the county auditor must withhold
244.15the parcel from sale or lease to any other party for six months, and must confirm the
244.16starting date of the six-month withholding period to the requesting agency or subdivision.
244.17If the request is from a governmental subdivision of the state, the governmental
244.18subdivision must pay the maintenance costs incurred by the county during the period the
244.19parcel is withheld. The county board may approve a sale or conveyance to the requesting
244.20party during the withholding period. A conveyance of the property to the requesting
244.21party terminates the withholding period.
244.22A governmental subdivision of the state must not make, and a county auditor must
244.23not act upon, a second request to withhold a parcel from sale or lease within 18 months
244.24of a previous request for that parcel. A county may reject a request made under this
244.25paragraph if the request is made more than 30 days after the county has given notice to the
244.26requesting state agency or governmental subdivision of the state that the county intends to
244.27sell or otherwise dispose of the property.
244.28(b) Nonconservation tax-forfeited lands may be sold by the county board, for
244.29their market value as determined by the county board, to an organized or incorporated
244.30governmental subdivision of the state for any public purpose for which the subdivision is
244.31authorized to acquire property. When the term "market value" is used in this section, it
244.32means an estimate of the full and actual market value of the parcel as determined by the
244.33county board, but in making this determination, the board and the persons employed by or
244.34under contract with the board in order to perform, conduct, or assist in the determination,
244.35are exempt from the licensure requirements of chapter 82B.
245.1(c) Nonconservation tax-forfeited lands may be
245.2
245.3determined by the county board, to a state agency for
245.4
245.5agency is authorized to acquire property.
245.6(d) Nonconservation tax-forfeited lands may be sold by the county board to an
245.7organized or incorporated governmental subdivision of the state or state agency for less
245.8than their market value if:
245.9(1) the county board determines that a sale at a reduced price is in the public interest
245.10because a reduced price is necessary to provide an incentive to correct the blighted
245.11conditions that make the lands undesirable in the open market, or the reduced price will
245.12lead to the development of affordable housing; and
245.13(2) the governmental subdivision or state agency has documented its specific plans
245.14for correcting the blighted conditions or developing affordable housing, and the specific
245.15law or laws that empower it to acquire real property in furtherance of the plans.
245.16If the sale under this paragraph is to a governmental subdivision of the state, the
245.17commissioner of revenue must convey the property on behalf of the state by quitclaim
245.18deed. If the sale under this paragraph is to a state agency, the property is released from
245.19the trust in favor of the taxing districts and the commissioner of revenue must
245.20
245.21
245.22(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
245.23may be conveyed by the commissioner of revenue in the name of the state to a
245.24governmental subdivision for an authorized public use, if an application is submitted to the
245.25commissioner which includes a statement of facts as to the use to be made of the tract and
245.26the favorable recommendation of the county board. For the purposes of this paragraph,
245.27"authorized public use" means a use that allows an indefinite segment of the public to
245.28physically use and enjoy the property in numbers appropriate to its size and use, or is for a
245.29public service facility. Authorized public uses as defined in this paragraph are limited to:
245.30(1) a road, or right-of-way for a road;
245.31(2) a park that is both available to, and accessible by, the public that contains
245.32improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
245.33(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
245.34with a reasonable amount of surrounding land maintained in its natural state;
246.1(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
246.2including transit ways, park-and-ride lots, transit stations, maintenance and garage
246.3facilities, and other facilities related to a public transit system;
246.4(5) public beaches or boat launches;
246.5(6) public parking;
246.6(7) civic recreation or conference facilities; and
246.7(8) public service facilities such as fire halls, police stations, lift stations, water
246.8towers, sanitation facilities, water treatment facilities, and administrative offices.
246.9No monetary compensation or consideration is required for the conveyance, except as
246.10provided in subdivision 1g, but the conveyance is subject to the conditions provided in
246.11law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
246.12(f) The commissioner of revenue shall convey a parcel of nonconservation
246.13tax-forfeited land to a local governmental subdivision of the state by quitclaim deed
246.14on behalf of the state upon the favorable recommendation of the county board if the
246.15governmental subdivision has certified to the board that prior to forfeiture the subdivision
246.16was entitled to the parcel under a written development agreement or instrument, but
246.17the conveyance failed to occur prior to forfeiture. No compensation or consideration is
246.18required for, and no conditions attach to, the conveyance.
246.19(g) The commissioner of revenue shall convey a parcel of nonconservation
246.20tax-forfeited land to the association of a common interest community by quitclaim deed
246.21upon the favorable recommendation of the county board if the association certifies to the
246.22board that prior to forfeiture the association was entitled to the parcel under a written
246.23agreement, but the conveyance failed to occur prior to forfeiture. No compensation or
246.24consideration is required for, and no conditions attach to, the conveyance.
246.25(h) Conservation tax-forfeited land may be sold to a governmental subdivision of
246.26the state for less than its market value for either: (1) creation or preservation of wetlands;
246.27(2) drainage or storage of storm water under a storm water management plan; or (3)
246.28preservation, or restoration and preservation, of the land in its natural state. The deed must
246.29contain a restrictive covenant limiting the use of the land to one of these purposes for
246.3030 years or until the property is reconveyed back to the state in trust. At any time, the
246.31governmental subdivision may reconvey the property to the state in trust for the taxing
246.32districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
246.33No part of a purchase price determined under this paragraph shall be refunded upon a
246.34reconveyance, but the amount paid for a conveyance under this paragraph may be taken
246.35into account by the county board when setting the terms of a future sale of the same
246.36property to the same governmental subdivision under paragraph (b) or (d). If the lands
247.1are unplatted and located outside of an incorporated municipality and the commissioner
247.2of natural resources determines there is a mineral use potential, the sale is subject to the
247.3approval of the commissioner of natural resources.
247.4(i) A park and recreation board in a city of the first class is a governmental
247.5subdivision for the purposes of this section.
247.6(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed
247.7by the commissioner of revenue in the name of the state to a governmental subdivision for
247.8a school forest under section
247.9to the use to be made of the tract and the favorable recommendation of the county board
247.10and the commissioner of natural resources must be submitted to the commissioner of
247.11revenue. No monetary compensation or consideration is required for the conveyance, but
247.12the conveyance is subject to the conditional use and reversion provisions of subdivisions
247.131c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the
247.14property back to the state in trust for the taxing districts. The deed of reconveyance is
247.15subject to approval by the commissioner of revenue.
247.16EFFECTIVE DATE.This section is effective the day following final enactment.
247.17 Sec. 34. Minnesota Statutes 2014, section 282.01, subdivision 1d, is amended to read:
247.18 Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years
247.19from the date of any conveyance of tax-forfeited land to a governmental subdivision for
247.20an authorized public use as provided in this section, regardless of when the deed for the
247.21authorized public use was executed, if the governmental subdivision has failed to put the
247.22land to that use, or abandons that use, the governing body of the subdivision must: (1)
247.23with the approval of the county board, purchase the property for an authorized public
247.24purpose at the present market value as determined by the county board, or (2) authorize
247.25the proper officers to convey the land, or the part of the land not required for an authorized
247.26public use, to the state of Minnesota in trust for the taxing districts. If the governing body
247.27purchases the property under clause (1), the commissioner of revenue shall, upon proper
247.28application submitted by the county auditor and upon the reconveyance of the land subject
247.29to the conditional use deed to the state, convey the property on behalf of the state by
247.30quitclaim deed to the subdivision free of a use restriction and the possibility of reversion
247.31or defeasement. If the governing body decides to reconvey the property to the state under
247.32this clause, the officers shall execute a deed of conveyance immediately. The conveyance
247.33is subject to the approval of the commissioner and its form must be approved by the
247.34attorney general. For 15 years from the date of the conveyance, there is no failure to put
247.35the land to the authorized public use and no abandonment of that use if a formal plan of
248.1the governmental subdivision, including, but not limited to, a comprehensive plan or land
248.2use plan, shows an intended future use of the land for the authorized public use.
248.3(b) Property held by a governmental subdivision of the state under a conditional use
248.4deed executed under this section by the commissioner of revenue on or after January 1,
248.52007, may be acquired by that governmental subdivision after 15 years from the date
248.6of the conveyance if the commissioner determines upon written application from the
248.7subdivision that the subdivision has in fact put the property to the authorized public use for
248.8which it was conveyed, and the subdivision has made a finding that it has no current plans
248.9to change the use of the lands. Prior to conveying the property, the commissioner shall
248.10inquire whether the county board where the land is located objects to a conveyance of the
248.11property to the subdivision without conditions and without further act by or obligation
248.12of the subdivision. If the county does not object within 60 days, and the commissioner
248.13makes a favorable determination, the commissioner shall issue a quitclaim deed on behalf
248.14of the state unconditionally conveying the property to the governmental subdivision. For
248.15purposes of this paragraph, demonstration of an intended future use for the authorized
248.16public use in a formal plan of the governmental subdivision does not constitute use for
248.17that authorized public use.
248.18(c) Property held by a governmental subdivision of the state under a conditional use
248.19deed executed under this section by the commissioner of revenue before January 1, 2007,
248.20is released from the use restriction and possibility of reversion on January 1, 2022, if the
248.21county board records a resolution describing the land and citing this paragraph. The
248.22county board may authorize the county treasurer to deduct the amount of the recording
248.23fees from future settlements of property taxes to the subdivision.
248.24(d) Except for tax-forfeited land conveyed to establish a school forest under section
248.26the commissioner of revenue, regardless of when the deed for the authorized public use
248.27was executed, is released from the use restriction and reverter, and any use restriction or
248.28reverter for which no declaration of reversion has been recorded with the county recorder
248.29or registrar of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30
248.30years from the date the deed was acknowledged; or (3) final resolution of an appeal to
248.31district court under subdivision 1e, if a lis pendens related to the appeal is recorded in the
248.32office of the county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
248.33(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a
248.34school forest under section
248.35The property reverts to the state in trust for the taxing districts by operation of law if the
248.36commissioner of natural resources determines and reports to the commissioner of revenue
249.1under section
249.2land for school forest purposes for three consecutive years. The commissioner of revenue
249.3shall record a declaration of reversion for land that has reverted under this paragraph.
249.4EFFECTIVE DATE.This section is effective the day following final enactment.
249.5 Sec. 35. Minnesota Statutes 2014, section 477A.013, is amended by adding a
249.6subdivision to read:
249.7 Subd. 14. Communication by electronic mail. Prior to receiving aid pursuant to
249.8this section, a city must register an official electronic mail address with the commissioner,
249.9which the commissioner may use as an exclusive means to communicate with the city.
249.10EFFECTIVE DATE.This section is effective for aids payable in 2017 and thereafter.
249.11 Sec. 36. Minnesota Statutes 2014, section 477A.19, is amended by adding a
249.12subdivision to read:
249.13 Subd. 3a. Certification. On or before June 1 of each year, the commissioner of
249.14natural resources shall certify to the commissioner of revenue the number of watercraft
249.15launches and the number of watercraft trailer parking spaces in each county.
249.16EFFECTIVE DATE.This section is effective for aids payable in 2017 and thereafter.
249.17 Sec. 37. Minnesota Statutes 2014, section 477A.19, is amended by adding a
249.18subdivision to read:
249.19 Subd. 3b. Certification. On or before June 1 of each year, the commissioner of
249.20natural resources shall certify to the commissioner of revenue the counties that complied
249.21with the requirements of subdivision 3 the prior year and are eligible to receive aid
249.22under this section.
249.23EFFECTIVE DATE.This section is effective for aids payable in 2017 and thereafter.
249.24 Sec. 38. Minnesota Statutes 2014, section 559.202, subdivision 2, is amended to read:
249.25 Subd. 2. Exception. This section does not apply to sales made under chapter 282 or
249.26if the purchaser is represented throughout the transaction by either:
249.27(1) a person licensed to practice law in this state; or
249.28(2) a person licensed as a real estate broker or salesperson under chapter 82,
249.29provided that the representation does not create a dual agency, as that term is defined
249.30in section
250.1EFFECTIVE DATE.This section is effective for sales of tax-forfeited land
250.2occurring after the day following final enactment.
250.3 Sec. 39. Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read:
250.4 Subd. 2. Payment of supplemental credit. (a) The commissioner must pay
250.5supplemental credit amounts to each qualifying taxpayer by October 15, 2014.
250.6(b) If the commissioner cannot locate the qualifying taxpayer by October 15, 2016,
250.7or if a qualifying taxpayer to whom a warrant was issued does not cash that warrant within
250.8two years from the date the warrant was issued, the right to the credit shall lapse and the
250.9warrant shall be deposited in the general fund.
250.10EFFECTIVE DATE.This section is effective the day following final enactment.
250.11 Sec. 40. Laws 2014, chapter 308, article 9, section 94, is amended to read:
250.12 Sec. 94. REPEALER.
250.13(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision
250.1419e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules,
250.15part 8007.0200, are repealed.
250.16(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11,
250.17subdivision 2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51,
250.1853, 67, 72, and 82;
250.19subdivision 3; 273.075; 273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77;
250.20279.32; 281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20,
250.21subdivision 4; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision
250.227; 297A.666; 297A.71, subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08,
250.23subdivision 11; 297H.10, subdivision 2; 469.174, subdivision 10c; 469.175, subdivision
250.242b; 469.176, subdivision 1i; 469.177, subdivision 10; 477A.0124, subdivisions 1 and 6;
250.25and 505.173, Minnesota Statutes 2013 Supplement, section 273.1103, Laws 1993, chapter
250.26375, article 9, section 47, and Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800;
250.27and 8130.7500, subpart 7, are repealed.
250.28(c) Minnesota Statutes 2012, section 469.1764, is repealed.
250.29(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision
250.3038; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338;
250.31469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013
250.32Supplement, section 469.340, subdivision 4, are repealed.
250.33(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.
251.1EFFECTIVE DATE.This section is effective retroactively from May 20, 2014,
251.2and pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027,
251.3subdivision 2, is revived and reenacted as of that date.
251.4 Sec. 41. REPEALER.
251.5(a) Minnesota Statutes 2014, section 281.22, is repealed.
251.6(b) Minnesota Rules, part 8100.0700, is repealed.
251.7EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
251.8Paragraph (b) is effective beginning with assessment year 2016.
251.11 Section 1. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:
251.12 Subdivision 1. Annual report required. Every railroad company doing business
251.13in Minnesota shall annually file with the commissioner on or before March 31 a report
251.14under oath setting forth the information prescribed by the commissioner to enable the
251.15commissioner to make the valuation and equalization required by sections
251.17pursuant to section 270C.30, except that a "law administered by the commissioner"
251.18includes the property tax laws. If a report is made by electronic means, the taxpayer's
251.19signature is defined pursuant to section 270C.304, except that a "law administered by the
251.20commissioner" includes the property tax laws.
251.21EFFECTIVE DATE.This section is effective the day following final enactment.
251.22 Sec. 2. Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read:
251.23 Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed
251.24and certain amount of money, which equals or exceeds $25 and which is due and payable
251.25to a claimant agency. The term includes criminal fines imposed under section
251.274a
251.28order, or other legal obligation, but need not have been reduced to judgment.
251.29 A debt includes any legal obligation of a current recipient of assistance which is
251.30based on overpayment of an assistance grant where that payment is based on a client
251.31waiver or an administrative or judicial finding of an intentional program violation;
251.32or where the debt is owed to a program wherein the debtor is not a client at the time
252.1notification is provided to initiate recovery under this chapter and the debtor is not a
252.2current recipient of food support, transitional child care, or transitional medical assistance.
252.3 (b) A debt does not include any legal obligation to pay a claimant agency for medical
252.4care, including hospitalization if the income of the debtor at the time when the medical
252.5care was rendered does not exceed the following amount:
252.6 (1) for an unmarried debtor, an income of
252.7 (2) for a debtor with one dependent, an income of
252.8 (3) for a debtor with two dependents, an income of
252.9 (4) for a debtor with three dependents, an income of
252.10 (5) for a debtor with four dependents, an income of
252.11 (6) for a debtor with five or more dependents, an income of
252.12For purposes of this paragraph, "debtor" means the individual whose income,
252.13together with the income of the individual's spouse, other than a separated spouse, brings
252.14the individual within the income provisions of this paragraph. For purposes of this
252.15paragraph, a spouse, other than a separated spouse, shall be considered a dependent.
252.16 (c) The commissioner shall adjust the income amounts in paragraph (b) by the
252.17percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
252.18Code, except that in section 1(f)(3)(B) the word "
252.19the word "1992." For
252.20change from the 12 months ending on August 31,
252.21August 31,
252.2231,
252.23year. The determination of the commissioner pursuant to this subdivision shall not be
252.24considered a "rule" and shall not be subject to the Administrative Procedure Act contained
252.25in chapter 14. The income amount as adjusted must be rounded to the nearest $10 amount.
252.26If the amount ends in $5, the amount is rounded up to the nearest $10 amount.
252.27 (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of
252.28the dollar amount of the premium authorized under section
252.29EFFECTIVE DATE.The section is effective retroactively for debts incurred after
252.30December 31, 2014.
252.31 Sec. 3. Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read:
252.32 Subdivision 1. Disclosure to commissioner of human services. (a) On the request
252.33of the commissioner of human services, the commissioner shall disclose return information
252.34regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to
252.35the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
253.1 (b) Data that may be disclosed are limited to data relating to the identity,
253.2whereabouts, employment, income, and property of a person owing or alleged to be owing
253.3an obligation of child support.
253.4 (c) The commissioner of human services may request data only for the purposes of
253.5carrying out the child support enforcement program and to assist in the location of parents
253.6who have, or appear to have, deserted their children. Data received may be used only
253.7as set forth in section
253.8 (d) The commissioner shall provide the records and information necessary to
253.9administer the supplemental housing allowance to the commissioner of human services.
253.10 (e) At the request of the commissioner of human services, the commissioner of
253.11revenue shall electronically match the Social Security numbers and names of participants
253.12in the telephone assistance plan operated under sections
253.13property tax refund filers, and determine whether each participant's household income is
253.14within the eligibility standards for the telephone assistance plan.
253.15 (f) The commissioner may provide records and information collected under sections
253.17Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
253.18102-234. Upon the written agreement by the United States Department of Health and
253.19Human Services to maintain the confidentiality of the data, the commissioner may provide
253.20records and information collected under sections
253.21Medicare and Medicaid Services section of the United States Department of Health and
253.22Human Services for purposes of meeting federal reporting requirements.
253.23 (g) The commissioner may provide records and information to the commissioner of
253.24human services as necessary to administer the early refund of refundable tax credits.
253.25 (h) The commissioner may disclose information to the commissioner of human
253.26services as necessary
253.27payment under the MinnesotaCare program, under section
253.28as the medical assistance program under section 256B.
253.29 (i) The commissioner may disclose information to the commissioner of human
253.30services necessary to verify whether applicants or recipients for the Minnesota family
253.31investment program, general assistance, food support, Minnesota supplemental aid
253.32program, and child care assistance have claimed refundable tax credits under chapter 290
253.33and the property tax refund under chapter 290A, and the amounts of the credits.
253.34 (j) The commissioner may disclose information to the commissioner of human
253.35services necessary to verify income for purposes of calculating parental contribution
253.36amounts under section
254.1EFFECTIVE DATE.This section is effective the day following final enactment.
254.2 Sec. 4. Minnesota Statutes 2014, section 270C.30, is amended to read:
254.3270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.
254.4Except as otherwise provided by law, the commissioner shall prescribe the content
254.5
254.6administered by the commissioner, and may furnish them subject to charge on application.
254.7EFFECTIVE DATE.This section is effective the day following final enactment.
254.8 Sec. 5. Minnesota Statutes 2014, section 270C.33, subdivision 5, is amended to read:
254.9 Subd. 5. Prohibition against collection during appeal period of an order. No
254.10collection action can be taken on an order of assessment, or any other order imposing a
254.11liability, including the filing of liens under section
254.12may be imposed when a return has been filed for the tax type and period upon which the
254.13order is based, during the appeal period of an order. The appeal period of an order ends:
254.14(1) 60 days after the
254.15commissioner on the order; (2) if an administrative appeal is filed under section
254.1660 days after the notice date designated by the commissioner on the written determination
254.17of the administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when
254.18the decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the
254.19appeal is based upon a constitutional challenge to the tax, 60 days after final determination
254.20of the appeal. This subdivision does not apply to a jeopardy assessment under section
254.22EFFECTIVE DATE.This section is effective for orders dated after December
254.2331, 2016.
254.24 Sec. 6. Minnesota Statutes 2014, section 270C.33, subdivision 8, is amended to read:
254.25 Subd. 8. Sufficiency of notice. An assessment of tax made by the commissioner,
254.26sent postage prepaid by United States mail to the taxpayer at the taxpayer's last known
254.27address, or sent by electronic mail to the taxpayer's last known electronic mailing address
254.28as provided for in section
254.29under a legal disability, or, in the case of a corporation, has terminated its existence, unless
254.30the commissioner has been provided with a new address by a party authorized to receive
254.31notices of assessment. Notice of an assessment is sufficient if it is sent on or before the
254.32notice date designated by the commissioner on the assessment.
255.1EFFECTIVE DATE.This section is effective for assessments dated after December
255.231, 2016.
255.3 Sec. 7. Minnesota Statutes 2014, section 270C.34, subdivision 2, is amended to read:
255.4 Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or
255.5section
255.6charge, must be filed with the commissioner within 60 days of the notice date of the
255.7
255.8or additional tax charge. For purposes of this section, the term "notice date" means the
255.9notice date designated by the commissioner on the order or other notice that a penalty or
255.10additional tax charge has been imposed.
255.11(b) If the commissioner issues an order denying a request for abatement of penalty,
255.12interest, or additional tax charge, the taxpayer may file an administrative appeal as
255.13provided in section
255.14(c) If the commissioner does not issue an order on the abatement request within
255.1560 days from the date the request is received, the taxpayer may appeal to Tax Court as
255.16provided in section
255.17EFFECTIVE DATE.This section is effective for orders and notices dated after
255.18December 31, 2016.
255.19 Sec. 8. Minnesota Statutes 2014, section 270C.347, subdivision 1, is amended to read:
255.20 Subdivision 1. Checks and warrants, authority to reissue. Notwithstanding any
255.21other provision of law, the commissioner may, based on a showing of reasonable cause,
255.22reissue an uncashed rebate, supplemental agricultural credit, or property tax refund warrant
255.23or check that has lapsed under any provision of law relating to rebates or under section
255.25is limited to five years after the date of issuance of the original warrant or check.
255.26EFFECTIVE DATE.This section is effective the day following final enactment.
255.27 Sec. 9. Minnesota Statutes 2014, section 270C.35, subdivision 3, is amended to read:
255.28 Subd. 3. Notice date. For purposes of this section, the term "notice date" means the
255.29date
255.30request for abatement, or, in the case of a denied refund, the notice date
255.31the commissioner on the notice of denial.
256.1EFFECTIVE DATE.This section is effective for orders and notices dated after
256.2December 31, 2016.
256.3 Sec. 10. Minnesota Statutes 2014, section 270C.35, is amended by adding a
256.4subdivision to read:
256.5 Subd. 11. Dismissal of administrative appeal. If a taxpayer files an administrative
256.6appeal for an order of the commissioner and also files an appeal to the Tax Court for
256.7that same order of the commissioner, the administrative appeal is dismissed and the
256.8commissioner is no longer required to make a determination of appeal under subdivision 6.
256.9EFFECTIVE DATE.This section is effective for all administrative appeals filed
256.10after June 30, 2016.
256.11 Sec. 11. Minnesota Statutes 2014, section 270C.38, subdivision 1, is amended to read:
256.12 Subdivision 1. Sufficient notice. (a) If no method of notification of a written
256.13determination or action of the commissioner is otherwise specifically provided for by
256.14law, notice of the determination or action sent postage prepaid by United States mail to
256.15the taxpayer or other person affected by the determination or action at the taxpayer's
256.16or person's last known address, is sufficient. If the taxpayer or person being notified is
256.17deceased or is under a legal disability, or, in the case of a corporation being notified that
256.18has terminated its existence, notice to the last known address of the taxpayer, person, or
256.19corporation is sufficient, unless the department has been provided with a new address by a
256.20party authorized to receive notices from the commissioner.
256.21(b) If a taxpayer or other person agrees to accept notification by electronic means,
256.22notice of a determination or action of the commissioner sent by electronic mail to the
256.23taxpayer's or person's last known electronic mailing address as provided for in section
256.25(c) Notice of a determination or action of the commissioner is sufficient if it is sent
256.26on or before the notice date designated by the commissioner on the notice.
256.27EFFECTIVE DATE.This section is effective for notices dated after December
256.2831, 2016.
256.29 Sec. 12. Minnesota Statutes 2014, section 270C.445, is amended by adding a
256.30subdivision to read:
256.31 Subd. 9. Enforcement; limitations. (a) Notwithstanding any other law, the
256.32imposition of a penalty or any other action against a tax return preparer authorized by
257.1subdivision 6 with respect to a return may be taken by the commissioner within the period
257.2provided by section 289A.38 to assess tax on that return.
257.3(b) Imposition of a penalty or other action against a tax return preparer authorized
257.4by subdivision 6 other than with respect to a return must be taken by the commissioner
257.5within five years of the violation of statute.
257.6EFFECTIVE DATE.This section is effective for tax preparation services provided
257.7after the day following final enactment.
257.8 Sec. 13. Minnesota Statutes 2014, section 270C.446, subdivision 5, is amended to read:
257.9 Subd. 5. Removal from list. The commissioner shall remove the name of a tax
257.10preparer from the list of tax preparers published under this section:
257.11(1) when the commissioner determines that the name was included on the list in error;
257.12(2) within
257.13that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied
257.14any sentence imposed, successfully completed any probationary period imposed, and
257.15successfully completed any remedial actions required by the commissioner, the State
257.16Board of Accountancy, or the Lawyers Board of Professional Responsibility; or
257.17(3) when the commissioner has been notified that the tax preparer is deceased.
257.18EFFECTIVE DATE.This section is effective the day following final enactment.
257.19 Sec. 14. Minnesota Statutes 2014, section 270C.72, subdivision 4, is amended to read:
257.20 Subd. 4. Licensing authority; duties. All licensing authorities must require
257.21the applicant to provide the applicant's Social Security number or individual taxpayer
257.22identification number and Minnesota business identification number, as applicable, on
257.23all license applications. Upon request of the commissioner, the licensing authority
257.24must provide the commissioner with a list of all applicants, including the name,
257.25address, business name and address, and Social Security number
257.26identification number and business identification number, as applicable, of each applicant.
257.27The commissioner may request from a licensing authority a list of the applicants no more
257.28than once each calendar year.
257.29EFFECTIVE DATE.This section is effective the day following final enactment.
257.30 Sec. 15. Minnesota Statutes 2014, section 271.06, subdivision 2, is amended to read:
257.31 Subd. 2. Time; notice; intervention. Except as otherwise provided by law, within
257.3260 days after the notice
258.1revenue, the appellant, or the appellant's attorney, shall serve a notice of appeal upon
258.2the commissioner and file the original, with proof of such service, with the Tax Court
258.3administrator or with the court administrator of district court acting as court administrator
258.4of the Tax Court; provided, that the Tax Court, for cause shown, may by written order
258.5extend the time for appealing for an additional period not exceeding 30 days. For purposes
258.6of this section, the term "notice date" means the notice date designated by the commissioner
258.7on the order. The notice of appeal shall be in the form prescribed by the Tax Court. Within
258.8five days after receipt, the commissioner shall transmit a copy of the notice of appeal to
258.9the attorney general. The attorney general shall represent the commissioner, if requested,
258.10upon all such appeals except in cases where the attorney general has appealed in behalf of
258.11the state, or in other cases where the attorney general deems it against the interests of the
258.12state to represent the commissioner, in which event the attorney general may intervene or
258.13be substituted as an appellant in behalf of the state at any stage of the proceedings.
258.14Upon a final determination of any other matter over which the court is granted
258.15jurisdiction under section
258.16shall file a petition or notice of appeal as provided by law with the court administrator of
258.17district court, acting in the capacity of court administrator of the Tax Court, with proof of
258.18service of the petition or notice of appeal as required by law and within the time required
258.19by law. As used in this subdivision, "final determination" includes a notice of assessment
258.20and equalization for the year in question received from the local assessor, an order of the
258.21local board of equalization, or an order of a county board of equalization.
258.22The Tax Court shall prescribe a filing system so that the notice of appeal or petition
258.23filed with the district court administrator acting as court administrator of the Tax Court is
258.24forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
258.25property valuation for which the assessor, a local board of equalization, a county board of
258.26equalization or the commissioner of revenue has issued an order, the officer issuing the
258.27order shall be notified of the filing of the appeal. The notice of appeal or petition shall be
258.28in the form prescribed by the Tax Court.
258.29EFFECTIVE DATE.This section is effective for orders dated after December
258.3031, 2016.
258.31 Sec. 16. Minnesota Statutes 2014, section 271.06, subdivision 7, is amended to read:
258.32 Subd. 7. Rules. Except as provided in section
258.33of Evidence and Civil Procedure for the district court of Minnesota shall govern the
258.34procedures in the Tax Court, where practicable. The Rules of Civil Procedure do not apply
258.35to alter the 60-day period of time to file a notice of appeal provided in subdivision 2. The
259.1Tax Court may adopt rules under chapter 14. The rules in effect on January 1, 1989,
259.2apply until superseded.
259.3EFFECTIVE DATE.This section is effective for orders dated after December
259.431, 2016.
259.5 Sec. 17. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:
259.6 Subd. 10. Personal property used for pollution control. Personal property used
259.7primarily for the abatement and control of air, water, or land pollution is exempt to the
259.8extent that it is so used, and real property is exempt if it is used primarily for abatement
259.9and control of air, water, or land pollution as part of an agricultural operation, as a part
259.10of a centralized treatment and recovery facility operating under a permit issued by the
259.11Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
259.12Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
259.13treatment facility and for the treatment, recovery, and stabilization of metals, oils,
259.14chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
259.15part of an electric generation system. For purposes of this subdivision, personal property
259.16includes ponderous machinery and equipment used in a business or production activity
259.17that at common law is considered real property.
259.18Any taxpayer requesting exemption of all or a portion of any real property or any
259.19equipment or device, or part thereof, operated primarily for the control or abatement of air,
259.20water, or land pollution shall file an application with the commissioner of revenue. The
259.21commissioner shall develop an electronic means to notify interested parties when electric
259.22power generation facilities have filed an application. The commissioner shall prescribe
259.23the content, format, and manner of the application pursuant to section 270C.30, except
259.24that a "law administered by the commissioner" includes the property tax laws, and if an
259.25application is made by electronic means, the taxpayer's signature is defined pursuant to
259.26section 270C.304, except that a "law administered by the commissioner" includes the
259.27property tax laws. The Minnesota Pollution Control Agency shall upon request of the
259.28commissioner furnish information and advice to the commissioner.
259.29The information and advice furnished by the Minnesota Pollution Control
259.30Agency must include statements as to whether the equipment, device, or real property
259.31meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution
259.32Control Agency, and whether the equipment, device, or real property is installed or
259.33operated in accordance with it. On determining that property qualifies for exemption,
259.34the commissioner shall issue an order exempting the property from taxation. The
259.35commissioner shall develop an electronic means to notify interested parties when
260.1the commissioner has issued an order exempting property from taxation under this
260.2subdivision. The equipment, device, or real property shall continue to be exempt from
260.3taxation as long as the order issued by the commissioner remains in effect.
260.4EFFECTIVE DATE.This section is effective the day following final enactment.
260.5 Sec. 18. Minnesota Statutes 2014, section 272.0211, subdivision 1, is amended to read:
260.6 Subdivision 1. Efficiency determination and certification. An owner or operator
260.7of a new or existing electric power generation facility, excluding wind energy conversion
260.8systems, may apply to the commissioner of revenue for a market value exclusion on the
260.9property as provided for in this section. This exclusion shall apply only to the market
260.10value of the equipment of the facility, and shall not apply to the structures and the land
260.11upon which the facility is located. The commissioner of revenue shall prescribe the
260.12content, format, manner, and procedures for this application pursuant to section 270C.30,
260.13except that a "law administered by the commissioner" includes the property tax laws. If
260.14an application is made by electronic means, the taxpayer's signature is defined pursuant
260.15to section 270C.304, except that a "law administered by the commissioner" includes the
260.16property tax laws. Upon receiving the application, the commissioner of revenue shall: (1)
260.17request the commissioner of commerce to make a determination of the efficiency of the
260.18applicant's electric power generation facility; and (2) shall develop an electronic means to
260.19notify interested parties when electric power generation facilities have filed an application.
260.20The commissioner of commerce shall calculate efficiency as the ratio of useful energy
260.21outputs to energy inputs, expressed as a percentage, based on the performance of the
260.22facility's equipment during normal full load operation. The commissioner must include in
260.23this formula the energy used in any on-site preparation of materials necessary to convert
260.24the materials into the fuel used to generate electricity, such as a process to gasify petroleum
260.25coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in
260.26the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible
260.27project under section
260.28heating value to allow for energy consumed for evaporation of the moisture in the wood.
260.29The applicant shall provide the commissioner of commerce with whatever information the
260.30commissioner deems necessary to make the determination. Within 30 days of the receipt
260.31of the necessary information, the commissioner of commerce shall certify the findings of
260.32the efficiency determination to the commissioner of revenue and to the applicant. The
260.33commissioner of commerce shall determine the efficiency of the facility and certify the
260.34findings of that determination to the commissioner of revenue every two years thereafter
260.35from the date of the original certification.
261.1EFFECTIVE DATE.This section is effective the day following final enactment.
261.2 Sec. 19. Minnesota Statutes 2014, section 272.025, subdivision 1, is amended to read:
261.3 Subdivision 1. Statement of exemption. (a) Except in the case of property owned
261.4by the state of Minnesota or any political subdivision thereof, and property exempt from
261.5taxation under section
261.6the times provided in subdivision 3, a taxpayer claiming an exemption from taxation
261.7on property described in section
261.8exemption with the assessor of the assessment district in which the property is located.
261.9(b) A taxpayer claiming an exemption from taxation on property described in section
261.11revenue, on or before February 15 of each year for which the taxpayer claims an exemption.
261.12(c) In case of sickness, absence or other disability or for good cause, the assessor
261.13or the commissioner may extend the time for filing the statement of exemption for a
261.14period not to exceed 60 days.
261.15(d) The commissioner of revenue shall prescribe the
261.16format, and manner of the statement of exemption pursuant to section 270C.30, except
261.17that a "law administered by the commissioner" includes the property tax laws.
261.18(e) If a statement is made by electronic means, the taxpayer's signature is defined
261.19pursuant to section 270C.304, except that a "law administered by the commissioner"
261.20includes the property tax laws.
261.21EFFECTIVE DATE.This section is effective the day following final enactment.
261.22 Sec. 20. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:
261.23 Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax
261.24under subdivision 3 shall file a report with the commissioner of revenue annually on or
261.25before
261.26was produced by the wind energy conversion system for the previous calendar year. The
261.27commissioner shall prescribe the
261.28to section 270C.30, except that a "law administered by the commissioner" includes the
261.29property tax laws. The report must contain the information required by the commissioner
261.30to determine the tax due to each county under this section for the current year. If an owner
261.31of a wind energy conversion system subject to taxation under this section fails to file the
261.32report by the due date, the commissioner of revenue shall determine the tax based upon
261.33the nameplate capacity of the system multiplied by a capacity factor of 60 percent.
262.1(b) If a report is made by electronic means, the taxpayer's signature is defined
262.2pursuant to section 270C.304, except that a "law administered by the commissioner"
262.3includes the property tax laws.
262.4
262.5of the wind energy conversion systems of the tax due to each county for the current year
262.6and shall certify to the county auditor of each county in which the systems are located the
262.7tax due from each owner for the current year.
262.8EFFECTIVE DATE.This section is effective the day following final enactment,
262.9except that the amendment in paragraph (a) moving the date to file the report is effective
262.10for reports filed in 2017 and thereafter.
262.11 Sec. 21. Minnesota Statutes 2014, section 272.0295, subdivision 4, is amended to read:
262.12 Subd. 4. Reports. An owner of a solar energy generating system subject to tax
262.13under this section shall file a report with the commissioner of revenue annually on or
262.14before January 15 detailing the amount of electricity in megawatt-hours that was produced
262.15by the system in the previous calendar year. The commissioner shall prescribe the
262.16content, format, and manner of the report pursuant to section 270C.30. The report must
262.17contain the information required by the commissioner to determine the tax due to each
262.18county under this section for the current year. If an owner of a solar energy generating
262.19system subject to taxation under this section fails to file the report by the due date, the
262.20commissioner of revenue shall determine the tax based upon the nameplate capacity of
262.21the system multiplied by a capacity factor of 30 percent.
262.22EFFECTIVE DATE.This section is effective the day following final enactment.
262.23 Sec. 22. Minnesota Statutes 2014, section 272.115, subdivision 2, is amended to read:
262.24 Subd. 2. Form; information required. The certificate of value shall require
262.25such facts and information as may be determined by the commissioner to be reasonably
262.26necessary in the administration of the state education aid formulas. The
262.27commissioner shall prescribe the content, format, and manner of the certificate of value
262.28
262.29
262.30administered by the commissioner" includes the property tax laws.
262.31EFFECTIVE DATE.This section is effective the day following final enactment.
262.32 Sec. 23. Minnesota Statutes 2014, section 273.124, subdivision 13, is amended to read:
263.1 Subd. 13. Homestead application. (a) A person who meets the homestead
263.2requirements under subdivision 1 must file a homestead application with the county
263.3assessor to initially obtain homestead classification.
263.4 (b)
263.5
263.6and manner of the homestead application required to be filed under this chapter pursuant
263.7to section 270C.30. The application must clearly inform the taxpayer that this application
263.8must be signed by all owners who occupy the property or by the qualifying relative and
263.9returned to the county assessor in order for the property to receive homestead treatment.
263.10 (c) Every property owner applying for homestead classification must furnish to the
263.11county assessor the Social Security number of each occupant who is listed as an owner
263.12of the property on the deed of record, the name and address of each owner who does not
263.13occupy the property, and the name and Social Security number of each owner's spouse who
263.14occupies the property. The application must be signed by each owner who occupies the
263.15property and by each owner's spouse who occupies the property, or, in the case of property
263.16that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
263.17 If a property owner occupies a homestead, the property owner's spouse may not
263.18claim another property as a homestead unless the property owner and the property owner's
263.19spouse file with the assessor an affidavit or other proof required by the assessor stating that
263.20the property qualifies as a homestead under subdivision 1, paragraph (e).
263.21 Owners or spouses occupying residences owned by their spouses and previously
263.22occupied with the other spouse, either of whom fail to include the other spouse's name
263.23and Social Security number on the homestead application or provide the affidavits or
263.24other proof requested, will be deemed to have elected to receive only partial homestead
263.25treatment of their residence. The remainder of the residence will be classified as
263.26nonhomestead residential. When an owner or spouse's name and Social Security number
263.27appear on homestead applications for two separate residences and only one application is
263.28signed, the owner or spouse will be deemed to have elected to homestead the residence for
263.29which the application was signed.
263.30 (d) If residential real estate is occupied and used for purposes of a homestead by a
263.31relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
263.32order for the property to receive homestead status, a homestead application must be filed
263.33with the assessor. The Social Security number of each relative and spouse of a relative
263.34occupying the property shall be required on the homestead application filed under this
263.35subdivision. If a different relative of the owner subsequently occupies the property, the
263.36owner of the property must notify the assessor within 30 days of the change in occupancy.
264.1The Social Security number of a relative or relative's spouse occupying the property
264.2is private data on individuals as defined by section
264.3disclosed to the commissioner of revenue, or, for the purposes of proceeding under the
264.4Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
264.5 (e) The homestead application shall also notify the property owners that if the
264.6property is granted homestead status for any assessment year, that same property shall
264.7remain classified as homestead until the property is sold or transferred to another person,
264.8or the owners, the spouse of the owner, or the relatives no longer use the property as their
264.9homestead. Upon the sale or transfer of the homestead property, a certificate of value must
264.10be timely filed with the county auditor as provided under section
264.11notify the assessor within 30 days that the property has been sold, transferred, or that the
264.12owner, the spouse of the owner, or the relative is no longer occupying the property as a
264.13homestead, shall result in the penalty provided under this subdivision and the property
264.14will lose its current homestead status.
264.15 (f) If a homestead application has not been filed with the county by December 15,
264.16the assessor shall classify the property as nonhomestead for the current assessment year
264.17for taxes payable in the following year, provided that the owner may be entitled to receive
264.18the homestead classification by proper application under section
264.19EFFECTIVE DATE.This section is effective the day following final enactment.
264.20 Sec. 24. Minnesota Statutes 2014, section 273.371, is amended to read:
264.21273.371 REPORTS OF UTILITY COMPANIES.
264.22 Subdivision 1. Report required. Every electric light, power, gas, water, express,
264.23stage, and transportation
264.24shall annually file with the commissioner on or before March 31 a report under oath
264.25setting forth the information prescribed by the commissioner to enable the commissioner
264.26to make valuations, recommended valuations, and equalization required under sections
264.28content, format, and manner of the report pursuant to section 270C.30, except that
264.29a "law administered by the commissioner" includes the property tax laws. If all the
264.30required information is not available on March 31, the company or pipeline shall file the
264.31information that is available on or before March 31, and the balance of the information
264.32as soon as it becomes available. If a report is made by electronic means, the taxpayer's
264.33signature is defined pursuant to section 270C.304, except that a "law administered by the
264.34commissioner" includes the property tax laws.
265.1 Subd. 2. Extension. The commissioner for good cause may extend the time for
265.2filing the report required by subdivision 1. The extension
265.3 Subd. 3. Reports filed by the commissioner. If a company fails to file a report
265.4required by subdivision 1, the commissioner may, from information in the commissioner's
265.5possession or obtainable by the commissioner, make and file a report for the company or
265.6make the valuations, recommended valuations, and equalizations required under sections
265.7273.33, 273.35 to 273.37, and 273.3711.
265.8EFFECTIVE DATE.This section is effective the day following final enactment.
265.9 Sec. 25. Minnesota Statutes 2014, section 287.2205, is amended to read:
265.10287.2205 TAX-FORFEITED LAND.
265.11 Before a state deed for tax-forfeited land may be issued, the deed tax must be paid
265.12by the purchaser of tax-forfeited land whether the purchase is the result of a public
265.13auction or private sale or a repurchase of tax-forfeited land. State agencies and local
265.14units of government that acquire tax-forfeited land by purchase or any other means are
265.15subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a
265.16governmental subdivision for an authorized public use under section
265.171a
265.18under section
265.19EFFECTIVE DATE.This section is effective the day following final enactment.
265.20 Sec. 26. Minnesota Statutes 2014, section 289A.08, is amended by adding a
265.21subdivision to read:
265.22 Subd. 17. Format. The commissioner shall prescribe the content, format, and
265.23manner of the returns and other documents pursuant to section 270C.30. This does not
265.24authorize the commissioner to require individual income taxpayers to file individual
265.25income tax returns electronically.
265.26EFFECTIVE DATE.This section is effective the day following final enactment.
265.27 Sec. 27. Minnesota Statutes 2014, section 289A.09, subdivision 1, is amended to read:
265.28 Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax
265.29under section
265.30tax under section
265.31quarterly period unless otherwise prescribed by the commissioner.
266.1(b) A person or corporation required to make deposits under section
266.2subdivision 8
266.3(c) A person required to withhold an amount under section
266.4must file a return.
266.5(d) A partnership required to deduct and withhold tax under section
266.6subdivision 4b
266.7(e) An S corporation required to deduct and withhold tax under section
266.8subdivision 4c
266.9(f)
266.10
266.11and manner of the returns pursuant to section 270C.30. Every return for taxes withheld
266.12must be signed by the employer, entertainment entity, contract payor, partnership, or S
266.13corporation, or a designee.
266.14EFFECTIVE DATE.This section is effective the day following final enactment.
266.15 Sec. 28. Minnesota Statutes 2014, section 289A.11, subdivision 1, is amended to read:
266.16 Subdivision 1. Return required. (a) Except as provided in section
266.17subdivision 4
266.18which a return is due, a return for the preceding reporting period must be filed with the
266.19commissioner
266.20shall prescribe the content, format, and manner of the returns pursuant to section 270C.30.
266.21A person making sales at retail at two or more places of business may file a consolidated
266.22return subject to rules prescribed by the commissioner. In computing the dollar amount of
266.23items on the return, the amounts are rounded off to the nearest whole dollar, disregarding
266.24amounts less than 50 cents and increasing amounts of 50 cents to 99 cents to the next
266.25highest dollar.
266.26(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax
266.27permit under chapter 297A and who makes annual purchases, for use in a trade or business,
266.28of less than $18,500, or a person who is not required to hold a sales tax permit and who
266.29makes purchases for personal use, that are subject to the use tax imposed by section
266.31The commissioner shall prescribe the content, format, and manner of the return pursuant
266.32to section 270C.30. If a person who qualifies for an annual use tax reporting period is
266.33required to obtain a sales tax permit or makes use tax purchases, for use in a trade or
266.34business, in excess of $18,500 during the calendar year, the reporting period must be
267.1considered ended at the end of the month in which the permit is applied for or the purchase
267.2in excess of $18,500 is made and a return must be filed for the preceding reporting period.
267.3(c) Notwithstanding
267.4person's religious beliefs from using electronics shall be allowed to file by mail, without
267.5any additional fees. The filer must notify the commissioner of revenue of the intent to file
267.6by mail on a form prescribed by the commissioner. A return filed under this paragraph
267.7must be postmarked no later than the day the return is due in order to be considered filed
267.8on a timely basis.
267.9EFFECTIVE DATE.This section is effective the day following final enactment.
267.10 Sec. 29. Minnesota Statutes 2014, section 289A.18, subdivision 1, is amended to read:
267.11 Subdivision 1. Individual income, fiduciary income, corporate franchise, and
267.12entertainment taxes; partnership and S corporation returns; information returns;
267.13mining company returns. The returns required to be made under sections
267.15 (1) returns made on the basis of the calendar year must be filed on April 15 following
267.16the close of the calendar year, except that returns of corporations and partnerships must be
267.17filed on the due date for filing the federal income tax return;
267.18 (2) returns made on the basis of the fiscal year must be filed on the 15th day of the
267.19fourth month following the close of the fiscal year, except that returns of corporations and
267.20partnerships must be filed on the due date for filing the federal income tax return;
267.21 (3) returns for a fractional part of a year must be filed on the due date for filing the
267.22federal income tax return;
267.23 (4) in the case of a final return of a decedent for a fractional part of a year, the return
267.24must be filed on the 15th day of the fourth month following the close of the 12-month
267.25period that began with the first day of that fractional part of a year;
267.26 (5) in the case of the return of a cooperative association, returns must be filed on or
267.27before the 15th day of the ninth month following the close of the taxable year;
267.28 (6) if a corporation has been divested from a unitary group and files a return for
267.29a fractional part of a year in which it was a member of a unitary business that files a
267.30combined report under section
267.31must be filed on the 15th day of the third month following the close of the common
267.32accounting period that includes the fractional year;
267.33 (7) returns of entertainment entities must be filed on April 15 following the close of
267.34the calendar year;
268.1 (8) returns required to be filed under section
268.2on the 15th day of the fifth month following the close of the taxable year;
268.3 (9) returns of mining companies must be filed on May 1 following the close of the
268.4calendar year; and
268.5 (10) returns required to be filed with the commissioner under section
268.6subdivision 2
268.7commissioner.
268.8EFFECTIVE DATE.This section is effective the day following final enactment.
268.9 Sec. 30. Minnesota Statutes 2014, section 289A.37, subdivision 2, is amended to read:
268.10 Subd. 2. Erroneous refunds.
268.11
268.12
268.13
268.14
268.15when the commissioner issues a payment to a person that exceeds the amount the person
268.16is entitled to receive under law. An erroneous refund is considered an underpayment
268.17of tax on the date issued.
268.18(b) To the extent that the amount paid does not exceed the amount claimed by the
268.19taxpayer, an erroneous refund does not include the following:
268.20(1) any amount of a refund or credit paid pursuant to a claim for refund filed by
268.21a taxpayer, including but not limited to refunds of claims made under section 290.06,
268.22subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
268.23290.0681; or 290.0692; or chapter 290A; or
268.24(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed
268.25by a taxpayer.
268.26(c) The commissioner may make an assessment to recover an erroneous refund at
268.27any time within two years from the issuance of the erroneous refund. If all or part of
268.28the erroneous refund was induced by fraud or misrepresentation of a material fact, the
268.29assessment may be made at any time.
268.30(d) Assessments of amounts that are not erroneous refunds under paragraph (b)
268.31must be conducted under section 289A.38.
268.32EFFECTIVE DATE.This section is effective the day following final enactment and
268.33applies retroactively to all refunds issued on, before, or after that date, but does not apply to
268.34the refunds at issue in Connexus Energy et al. v. Commissioner of Revenue, 868 N.W.2d
269.1234 (Minn. 2015). Notwithstanding any law to the contrary, the changes in this section do
269.2not invalidate any assessments made by the commissioner prior to this effective date.
269.3 Sec. 31. Minnesota Statutes 2014, section 289A.50, subdivision 7, is amended to read:
269.4 Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the
269.5refund claim is denied in whole or in part, the taxpayer may:
269.6(1) file an administrative appeal as provided in section
269.7with the Tax Court, within 60 days after
269.8notice of denial; or
269.9(2) file an action in the district court to recover the refund.
269.10(b) An action in the district court on a denied claim for refund must be brought
269.11within 18 months of the notice date of the denial of the claim by the commissioner. For
269.12the purposes of this section, "notice date" is defined in section 270C.35, subdivision 3.
269.13(c) No action in the district court or the Tax Court shall be brought within six months
269.14of the filing of the refund claim unless the commissioner denies the claim within that period.
269.15(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
269.16of the claim, the taxpayer may bring an action in the district court or the Tax Court at any
269.17time after the expiration of six months from the time the claim was filed.
269.18(e) The commissioner and the taxpayer may agree to extend the period for bringing
269.19an action in the district court.
269.20(f) An action for refund of tax by the taxpayer must be brought in the district court
269.21of the district in which lies the county of the taxpayer's residence or principal place of
269.22business. In the case of an estate or trust, the action must be brought at the principal place
269.23of its administration. Any action may be brought in the district court for Ramsey County.
269.24EFFECTIVE DATE.This section is effective for claims for refund denied after
269.25December 31, 2016.
269.26 Sec. 32. [290B.11] FORMS.
269.27The commissioner shall prescribe the content, format, and manner of all forms and
269.28other documents required to be filed under this chapter pursuant to section 270C.30.
269.29EFFECTIVE DATE.This section is effective the day following final enactment.
269.30 Sec. 33. [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.
270.1On request of the commissioner, the commissioner of natural resources must
270.2annually provide verification that the claimant has a current forest management plan on
270.3file with the Department of Natural Resources.
270.4EFFECTIVE DATE.This section is effective for certifications filed after July
270.51, 2017.
270.6 Sec. 34. [293.15] FORMS.
270.7The commissioner shall prescribe the content, format, and manner of all forms and
270.8other documents required to be filed under this chapter pursuant to section 270C.30.
270.9EFFECTIVE DATE.This section is effective the day following final enactment.
270.10 Sec. 35. Minnesota Statutes 2014, section 295.55, subdivision 6, is amended to read:
270.11 Subd. 6. Form of returns.
270.12
270.13shall prescribe the content, format, and manner of the estimated payment forms and annual
270.14return pursuant to section 270C.30.
270.15EFFECTIVE DATE.This section is effective the day following final enactment.
270.16 Sec. 36. Minnesota Statutes 2014, section 296A.02, is amended by adding a
270.17subdivision to read:
270.18 Subd. 5. Forms. The commissioner shall prescribe the content, format, and manner
270.19of all forms and other documents required to be filed under this chapter pursuant to section
270.20270C.30.
270.21EFFECTIVE DATE.This section is effective the day following final enactment.
270.22 Sec. 37. Minnesota Statutes 2014, section 296A.22, subdivision 9, is amended to read:
270.23 Subd. 9. Abatement of penalty. (a) The commissioner may by written order
270.24abate any penalty imposed under this section, if in the commissioner's opinion there is
270.25reasonable cause to do so.
270.26(b) A request for abatement of penalty must be filed with the commissioner within
270.2760 days of the notice date of the
270.28
270.29means the notice date designated by the commissioner on the order or other notice that a
270.30penalty has been imposed.
271.1(c) If the commissioner issues an order denying a request for abatement of penalty,
271.2the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to
271.3Tax Court as provided in section
271.4the abatement request within 60 days from the date the request is received, the taxpayer
271.5may appeal to Tax Court as provided in section
271.6EFFECTIVE DATE.This section is effective for orders and notices dated after
271.7December 31, 2016.
271.8 Sec. 38. Minnesota Statutes 2014, section 296A.26, is amended to read:
271.9296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.
271.10In lieu of an administrative appeal under section
271.11an order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
271.1260 days from the notice date of
271.13provided under section
271.14the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.
271.15EFFECTIVE DATE.This section is effective for orders dated after December
271.1631, 2016.
271.17 Sec. 39. Minnesota Statutes 2014, section 297D.02, is amended to read:
271.18297D.02 ADMINISTRATION.
271.19The commissioner of revenue shall administer this chapter. The commissioner shall
271.20prescribe the content, format, and manner of all forms and other documents required to be
271.21filed under this chapter pursuant to section 270C.30. Payments required by this chapter
271.22must be made to the commissioner on the form provided by the commissioner. Tax obligors
271.23are not required to give their name, address, Social Security number, or other identifying
271.24information on the form. The commissioner shall collect all taxes under this chapter.
271.25EFFECTIVE DATE.This section is effective the day following final enactment.
271.26 Sec. 40. Minnesota Statutes 2014, section 297E.02, subdivision 3, is amended to read:
271.27 Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due
271.28and payable to the commissioner when the gambling tax return is required to be filed.
271.29Distributors must file their monthly sales figures with the commissioner on a form
271.30prescribed by the commissioner. Returns covering the taxes imposed under this section
271.31must be filed with the commissioner on or before the 20th day of the month following the
272.1close of the previous calendar month.
272.2
272.3content, format, and manner of returns or other documents pursuant to section 270C.30.
272.4The proceeds, along with the revenue received from all license fees and other fees under
272.5sections
272.6management and budget for deposit in the general fund.
272.7(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by
272.8the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards
272.9by the organization is exempt from taxes imposed by chapter 297A and is exempt from all
272.10local taxes and license fees except a fee authorized under section
272.11(c) One-half of one percent of the revenue deposited in the general fund under
272.12paragraph (a), is appropriated to the commissioner of human services for the compulsive
272.13gambling treatment program established under section
272.14of the revenue deposited in the general fund under paragraph (a), is appropriated to
272.15the commissioner of human services for a grant to the state affiliate recognized by
272.16the National Council on Problem Gambling to increase public awareness of problem
272.17gambling, education and training for individuals and organizations providing effective
272.18treatment services to problem gamblers and their families, and research relating to
272.19problem gambling. Money appropriated by this paragraph must supplement and must not
272.20replace existing state funding for these programs.
272.21EFFECTIVE DATE.This section is effective the day following final enactment.
272.22 Sec. 41. Minnesota Statutes 2014, section 297E.04, subdivision 1, is amended to read:
272.23 Subdivision 1. Reports of sales. A manufacturer who sells gambling product for
272.24use or resale in this state, or for receipt by a person or entity in this state, shall file with the
272.25commissioner, on a form prescribed by the commissioner, a report of gambling product
272.26sold to any person in the state, including the established governing body of an Indian tribe
272.27recognized by the United States Department of the Interior. The report must be filed
272.28monthly on or before the 20th day of the month succeeding the month in which the sale
272.29was made.
272.30
272.31and manner of returns or other documents pursuant to section 270C.30. The commissioner
272.32may inspect the premises, books, records, and inventory of a manufacturer without notice
272.33during the normal business hours of the manufacturer. A person violating this section is
272.34guilty of a misdemeanor.
273.1EFFECTIVE DATE.This section is effective the day following final enactment.
273.2 Sec. 42. Minnesota Statutes 2014, section 297E.05, subdivision 4, is amended to read:
273.3 Subd. 4. Reports. A distributor shall report monthly to the commissioner, on a form
273.4the commissioner prescribes, its sales of each type of gambling product. This report must
273.5be filed monthly on or before the 20th day of the month succeeding the month in which
273.6the sale was made.
273.7
273.8
273.9other documents pursuant to section 270C.30.
273.10EFFECTIVE DATE.This section is effective the day following final enactment.
273.11 Sec. 43. Minnesota Statutes 2014, section 297E.06, subdivision 1, is amended to read:
273.12 Subdivision 1. Reports. An organization must file with the commissioner, on a form
273.13prescribed by the commissioner, a report showing all gambling activity conducted by that
273.14organization for each month. Gambling activity includes all gross receipts, prizes, all
273.15gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
273.16purpose and board-approved expenditures. The report must be filed with the commissioner
273.17on or before the 20th day of the month following the month in which the gambling activity
273.18takes place.
273.19
273.20of returns or other documents pursuant to section 270C.30.
273.21EFFECTIVE DATE.This section is effective the day following final enactment.
273.22 Sec. 44. Minnesota Statutes 2014, section 297F.09, subdivision 1, is amended to read:
273.23 Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day
273.24of each calendar month, a distributor with a place of business in this state shall file a
273.25return with the commissioner showing the quantity of cigarettes manufactured or brought
273.26in from outside the state or purchased during the preceding calendar month and the
273.27quantity of cigarettes sold or otherwise disposed of in this state and outside this state
273.28during that month. A licensed distributor outside this state shall in like manner file a
273.29return showing the quantity of cigarettes shipped or transported into this state during the
273.30preceding calendar month.
273.31The commissioner shall prescribe the content, format, and manner of returns pursuant to
273.32section 270C.30, and the returns must contain any other information required by the
274.1commissioner. The return must be accompanied by a remittance for the full unpaid tax
274.2liability shown by it. For distributors subject to the accelerated tax payment requirements
274.3in subdivision 10, the return for the May liability is due two business days before June 30th
274.4of the year and the return for the June liability is due on or before August 18th of the year.
274.5EFFECTIVE DATE.This section is effective the day following final enactment.
274.6 Sec. 45. Minnesota Statutes 2014, section 297F.23, is amended to read:
274.7297F.23 JUDICIAL REVIEW.
274.8In lieu of an administrative appeal under section
274.9order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60
274.10days from the notice date of
274.11provided under section
274.12the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.
274.13EFFECTIVE DATE.This section is effective for orders dated after December
274.1431, 2016.
274.15 Sec. 46. Minnesota Statutes 2014, section 297G.09, subdivision 1, is amended to read:
274.16 Subdivision 1. Monthly returns; manufacturers, wholesalers, brewers, or
274.17importers. On or before the 18th day of each calendar month following the month in
274.18which a licensed manufacturer or wholesaler first sells wine and distilled spirits within
274.19the state, or a brewer or importer first sells or imports fermented malt beverages, or a
274.20wholesaler knowingly acquires title to or possession of untaxed fermented malt beverages,
274.21the licensed manufacturer, wholesaler, brewer, or importer liable for the excise tax must
274.22file a return with the commissioner, and in addition must keep records and render reports
274.23as required by the commissioner.
274.24
274.25manner of returns pursuant to section 270C.30. The returns must contain any other
274.26information required by the commissioner. Returns must be accompanied by a remittance
274.27for the full unpaid tax liability. Returns must be filed regardless of whether a tax is due.
274.28EFFECTIVE DATE.This section is effective the day following final enactment.
274.29 Sec. 47. Minnesota Statutes 2014, section 297G.22, is amended to read:
274.30297G.22 JUDICIAL REVIEW.
275.1In lieu of an administrative appeal under this chapter, a person aggrieved by an order
275.2of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days
275.3from
275.4under section
275.5date designated by the commissioner on the order fixing a tax, penalty, or interest.
275.6EFFECTIVE DATE.This section is effective for orders dated after December
275.731, 2016.
275.8 Sec. 48. Minnesota Statutes 2014, section 297I.30, is amended by adding a subdivision
275.9to read:
275.10 Subd. 11. Format. The commissioner shall prescribe the content, format, and
275.11manner of returns or other documents pursuant to section 270C.30.
275.12EFFECTIVE DATE.This section is effective the day following final enactment.
275.13 Sec. 49. Minnesota Statutes 2014, section 297I.60, subdivision 2, is amended to read:
275.14 Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in
275.15whole or in part, the taxpayer may contest the denial by:
275.16(1) filing an administrative appeal with the commissioner under section
275.17(2) filing an appeal in Tax Court within 60 days of the notice date of the
275.18denial; or
275.19(3) filing an action in the district court to recover the refund.
275.20(b) An action in the district court must be brought within 18 months
275.21notice date of the
275.22section 270C.35, subdivision 3. An action for refund of tax or surcharge must be brought
275.23in the district court of the district in which lies the taxpayer's principal place of business or
275.24in the District Court for Ramsey County. If a taxpayer files a claim for refund and the
275.25commissioner has not issued a denial of the claim, the taxpayer may bring an action in
275.26the district court or the Tax Court at any time after the expiration of six months from the
275.27time the claim was filed.
275.28EFFECTIVE DATE.This section is effective for claims for refund denied after
275.29December 31, 2016.
275.30 Sec. 50. Minnesota Statutes 2014, section 469.319, subdivision 5, is amended to read:
275.31 Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a
275.32repayment required under subdivision 1, if the commissioner, in consultation with
276.1the commissioner of employment and economic development and appropriate officials
276.2from the local government units in which the qualified business is located, determines
276.3that requiring repayment of the tax is not in the best interest of the state or the local
276.4government units and the business ceased operating as a result of circumstances beyond
276.5its control including, but not limited to:
276.6 (1) a natural disaster;
276.7 (2) unforeseen industry trends; or
276.8 (3) loss of a major supplier or customer.
276.9 (b)(1) The commissioner shall waive repayment required under subdivision 1a if
276.10the commissioner has waived repayment by the operating business under subdivision 1,
276.11unless the person that received benefits without having to operate a business in the zone
276.12was a contributing factor in the qualified business becoming subject to repayment under
276.13subdivision 1;
276.14 (2) the commissioner shall waive the repayment required under subdivision 1a, even
276.15if the repayment has not been waived for the operating business if:
276.16 (i) the person that received benefits without having to operate a business in the zone
276.17and the business that operated in the zone are not related parties as defined in section
276.18267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and
276.19 (ii) actions of the person were not a contributing factor in the qualified business
276.20becoming subject to repayment under subdivision 1.
276.21(c) Requests for waiver must be made no later than 60 days after the earlier of the
276.22notice date of an order issued under subdivision 4, paragraph (d), or the date of a tax
276.23statement issued under subdivision 4, paragraph (c). For purposes of this section, the term
276.24"notice date" means the notice date designated by the commissioner on the order.
276.25EFFECTIVE DATE.This section is effective for orders of the commissioner of
276.26revenue dated after December 31, 2016.
276.27 Sec. 51. REPEALER.
276.28Minnesota Statutes 2014, section 290C.06, is repealed.
276.29EFFECTIVE DATE.This section is effective the day following final enactment.
"276.30Delete the title and insert:
276.32relating to financing of state and local government; making changes to property,
276.33individual income, corporate franchise, estate, sales and use, excise, petroleum
276.34and other fuel, gambling, tobacco, special, mineral, local, and other taxes and
276.35tax-related provisions; modifying local government aids and credits; amending
276.36county levy authority; exempting certain electric generation facility property and
277.1soccer stadium property from property tax; extending homestead value exclusion
277.2for spouses of qualifying deceased veterans; amending the state general levy;
277.3abating local property taxes in the Lake Mille Lacs area; establishing school
277.4building bond agricultural credit; establishing reimbursement for certain
277.5out-of-home placements of Indian children; establishing riparian protection
277.6aid; forgiving certain aid penalties; providing for federal tax conformity;
277.7modifying income tax credits; providing income tax credits; changing income
277.8tax modifications; modifying residency rules; modifying sales and use tax
277.9definitions; modifying sales and use tax collection requirements; modifying sales
277.10and use tax exemptions; providing for reimbursement from the Minnesota Sports
277.11Facilities Authority of certain sales and use taxes; allocating certain sales and use
277.12tax revenues; modifying and allowing certain local sales and use taxes; modifying
277.13provisions for gasoline used as a substitute for aviation gasoline; providing
277.14tax rates on paper pull-tabs sold at bingo halls; providing definitions and a
277.15tax rate for vapor products; modifying taconite tax distributions and deposits;
277.16providing for local development projects; modifying public finance provisions;
277.17transferring approval authority from the Iron Range Resources and Rehabilitation
277.18Board to the commissioner of Iron Range resources and rehabilitation;
277.19requiring the commissioner of Iron Range resources and rehabilitation to seek
277.20a recommendation from the board in certain circumstances; providing for
277.21transfer of ownership, eligibility, certification, and notification requirements for
277.22enrollment of land in the Sustainable Forest Incentive Act; modifying the budget
277.23reserve; providing a new markets grant program; providing a tax time savings
277.24grant program; providing civil and criminal penalties for sales suppression
277.25devices; allocating additional amounts to the border city enterprise zones; making
277.26clarifying and conforming changes; removing obsolete language; requiring
277.27reports; appropriating money;amending Minnesota Statutes 2014, sections 13.51,
277.28subdivision 2; 15.38, subdivision 7; 69.021, subdivision 5; 116J.424; 136A.129,
277.29subdivision 3; 138.053; 216B.161, subdivision 1; 270.071, subdivisions 2, 7, 8,
277.30by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision;
277.31270.12, by adding a subdivision; 270.82, subdivision 1; 270A.03, subdivision
277.325; 270B.14, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34,
277.33subdivision 2; 270C.347, subdivision 1; 270C.35, subdivision 3, by adding
277.34a subdivision; 270C.38, subdivision 1; 270C.445, by adding a subdivision;
277.35270C.446, subdivision 5; 270C.72, subdivision 4; 270C.89, subdivision 1;
277.36271.06, subdivisions 2, 7; 271.08, subdivision 1; 271.21, subdivision 2; 272.02,
277.37subdivisions 9, 10, by adding subdivisions; 272.0211, subdivision 1; 272.025,
277.38subdivision 1; 272.029, subdivisions 2, 4, by adding a subdivision; 272.0295,
277.39subdivision 4; 272.115, subdivision 2; 272.162; 273.032; 273.061, subdivision
277.407; 273.08; 273.121, by adding a subdivision; 273.124, subdivision 13; 273.13,
277.41subdivisions 22, 34; 273.1392; 273.1393; 273.33, subdivisions 1, 2; 273.371;
277.42273.372, subdivisions 1, 2, 4, by adding subdivisions; 274.01, subdivision 1;
277.43274.13, subdivision 1; 274.135, subdivision 3; 275.025, subdivisions 1, 2,
277.444; 275.065, subdivisions 1, 3; 275.066; 275.07, subdivisions 1, 2; 275.08,
277.45subdivision 1b; 275.62, subdivision 2; 276.04, subdivision 2; 276.11, subdivision
277.461; 276.111; 276A.01, subdivisions 8, 17; 278.01, subdivision 1; 278.12; 278.14,
277.47subdivision 1; 279.01, subdivisions 1, 2, 3; 279.03, subdivision 2; 279.37,
277.48subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261, subdivision 2; 282.38,
277.49subdivision 1; 287.2205; 289A.08, subdivisions 11, 16, by adding a subdivision;
277.50289A.09, subdivisions 1, 2; 289A.11, subdivision 1; 289A.12, subdivision
277.5114; 289A.18, subdivision 1, by adding a subdivision; 289A.20, subdivision
277.522; 289A.31, subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38,
277.53subdivision 6; 289A.50, subdivision 7; 289A.60, subdivision 28, by adding a
277.54subdivision; 290.01, subdivisions 7, 19a, 19b, 19c, 19d; 290.06, subdivision 22;
277.55290.067, subdivisions 1, 2b; 290.0671, subdivision 7; 290.0672, subdivision
277.561; 290.0674, subdivision 2, by adding a subdivision; 290.0677, subdivision
277.571a; 290.068, subdivision 2; 290.091, subdivisions 2, 3; 290.0921, subdivision
277.583; 290.0922, subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1;
278.1290A.03, subdivision 13; 290A.19; 290C.01; 290C.02, subdivisions 1, 3, 6;
278.2290C.03; 290C.04; 290C.05; 290C.055; 290C.07; 290C.08, subdivision 1;
278.3290C.10; 290C.11; 290C.13, subdivision 6; 291.016, subdivisions 2, 3; 291.03,
278.4subdivisions 9, 11, by adding a subdivision; 291.031; 295.54, subdivision 2;
278.5295.55, subdivision 6; 296A.01, subdivisions 12, 33, 42, by adding subdivisions;
278.6296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08,
278.7subdivision 2; 296A.09, subdivisions 1, 3, 5, 6; 296A.15, subdivisions 1, 4;
278.8296A.17, subdivisions 1, 2, 3; 296A.18, subdivisions 1, 8; 296A.19, subdivision
278.91; 296A.22, subdivision 9; 296A.26; 297A.61, subdivisions 3, 10; 297A.66,
278.10subdivisions 1, 2, 4, by adding a subdivision; 297A.67, subdivision 7a, by adding
278.11subdivisions; 297A.68, subdivision 9; 297A.70, subdivision 14; 297A.71, by
278.12adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.815, subdivision 3;
278.13297A.82, subdivisions 4, 4a; 297D.02; 297E.02, subdivisions 1, 3, 7; 297E.04,
278.14subdivision 1; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.01,
278.15subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by adding
278.16subdivisions; 297F.09, subdivision 1; 297F.23; 297G.09, subdivision 1; 297G.22;
278.17297H.04, subdivision 2; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10,
278.18subdivisions 1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2;
278.19298.001, subdivision 8; 298.01, subdivisions 3b, 4c; 298.22, subdivisions 1, 1a,
278.205a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5,
278.216; 298.223, subdivisions 1, 2; 298.227; 298.24, by adding a subdivision; 298.28,
278.22subdivisions 3, 5, 7a, 9d; 298.292, subdivision 2; 298.294; 298.296, subdivisions
278.231, 2, 4; 298.2961, subdivisions 2, 4; 298.298; 298.46, subdivision 2; 349.12, by
278.24adding a subdivision; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32;
278.25412.301; 469.034, subdivision 2; 469.101, subdivision 1; 469.169, by adding a
278.26subdivision; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.319,
278.27subdivision 5; 473.39, by adding a subdivision; 473H.09; 475.58, subdivision
278.283b; 475.60, subdivision 2; 477A.013, by adding a subdivision; 477A.017,
278.29subdivisions 2, 3; 477A.03, subdivision 2b; 477A.19, by adding subdivisions;
278.30559.202, subdivision 2; 609.5316, subdivision 3; Minnesota Statutes 2015
278.31Supplement, sections 16A.152, subdivision 2; 289A.02, subdivision 7; 290.01,
278.32subdivisions 19, 31; 290.0671, subdivision 1; 290A.03, subdivision 15; 291.005,
278.33subdivision 1; 297E.02, subdivision 6; 477A.015; 477A.03, subdivision 2a; Laws
278.341980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws
278.351988, chapter 645, section 3, as amended; Laws 1991, chapter 291, article 8,
278.36section 27, subdivisions 3, as amended, 4, as amended, 5, 6; Laws 1996, chapter
278.37471, article 2, section 29, subdivision 4, as amended; article 3, section 51; Laws
278.381999, chapter 243, article 4, section 18, subdivision 1, as amended; Laws 2001,
278.39First Special Session chapter 5, article 3, section 86; Laws 2008, chapter 154,
278.40article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section 20;
278.41Laws 2009, chapter 88, article 2, section 46, subdivisions 1, as amended, 2, 3, as
278.42amended, 4, 5; article 5, section 17, as amended; Laws 2014, chapter 308, article
278.431, section 14, subdivision 2; article 6, section 9; article 9, section 94; proposing
278.44coding for new law in Minnesota Statutes, chapters 103C; 116J; 216B; 270C;
278.45273; 290; 290B; 290C; 293; 477A; 609; repealing Minnesota Statutes 2014,
278.46sections 272.02, subdivision 23; 281.22; 290.067, subdivisions 2, 2a; 290C.02,
278.47subdivisions 5, 9; 290C.06; 297F.05, subdivision 1a; 477A.20; Minnesota Rules,
278.48parts 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3."