relating to the operation and financing of state and local government; making
policy, technical, administrative, and clarifying changes to income, corporate
franchise, estate, sales, use, mortgage, property, gross receipts, fuel, cigarette,
tobacco, insurance, gambling, liquor, minerals, solid waste, and various taxes and
tax-related provisions; modifying local government aid and tax data provisions;
appropriating money for education, health, and human services;amending
Minnesota Statutes 2008, sections 270B.14, subdivision 16; 270C.12, by adding
a subdivision; 270C.446, subdivisions 2, 5; 270C.56, subdivision 1; 273.11,
subdivision 23; 273.111, subdivision 4; 273.1115, subdivision 2; 273.1231,
subdivision 8; 273.124, subdivisions 3, 3a, 13, 21; 273.13, subdivisions 23,
25, 33; 273.33, subdivision 2; 273.37, subdivision 2; 274.13, subdivision
2; 274.135, subdivision 3; 274.14; 274.175; 282.01, subdivisions 1, 1a, 1b,
1c, 1d, 2, 3, 4, 7, 7a, by adding a subdivision; 287.04; 287.05, by adding a
subdivision; 287.22; 287.2205; 287.25; 289A.08, subdivision 3; 289A.12, by
adding a subdivision; 289A.18, subdivision 1; 289A.19, subdivision 4; 289A.31,
subdivision 5; 289A.38, subdivision 7; 289A.41; 290.01, subdivision 19b;
290.0671, subdivision 1; 290A.10; 290A.14; 290C.06; 290C.07; 295.56; 295.57,
subdivision 5; 296A.21, subdivision 1; 297A.70, subdivisions 2, 4; 297A.992,
subdivision 2; 297A.993, subdivision 1; 297E.02, subdivision 4; 297E.06, by
adding a subdivision; 297E.11, subdivision 1; 297F.09, subdivision 7; 297G.09,
subdivision 6; 297I.30, by adding a subdivision; 297I.35, subdivision 2;
298.28, subdivision 11; 473.843, subdivision 3; 477A.011, subdivisions 34, 42;
477A.013, subdivision 8; repealing Minnesota Statutes 2008, sections 282.01,
subdivisions 9, 10, 11; 287.26; 287.27, subdivision 1; 297A.67, subdivision
24; 298.28, subdivisions 11a, 13; 383A.76; Minnesota Rules, parts 8009.3000;
8115.0200; 8115.0300; 8115.0400; 8115.0500; 8115.0600; 8115.1000;
8115.1100; 8115.1200; 8115.1300; 8115.1400; 8115.1500; 8115.1600;
8115.1700; 8115.1800; 8115.1900; 8115.2000; 8115.2100; 8115.2200;
8115.2300; 8115.2400; 8115.2500; 8115.2600; 8115.2700; 8115.2800;
8115.2900; 8115.3000; 8115.4000; 8115.4100; 8115.4200; 8115.4300;
8115.4400; 8115.4500; 8115.4600; 8115.4700; 8115.4800; 8115.4900;
8115.5000; 8115.5100; 8115.5200; 8115.5300; 8115.5400; 8115.5500;
8115.5600; 8115.5700; 8115.5800; 8115.5900; 8115.6000; 8115.6100;
8115.6200; 8115.6300; 8115.6400; 8115.9900.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
2.2INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES
Section 1. Minnesota Statutes 2008, section 289A.08, subdivision 3, is amended to
Subd. 3. Corporations. (a)
A corporation that is subject to the state's jurisdiction to
tax under section
290.014, subdivision 5
, must file a return, except that a foreign operating
corporation as defined in section
290.01, subdivision 6b
, is not required to file a return.
2.8(b) Members of a unitary business that are required to file a combined report on one
2.9return must designate a member of the unitary business to be responsible for tax matters,
2.10including the filing of returns, the payment of taxes, additions to tax, penalties, interest,
2.11or any other payment, and for the receipt of refunds of taxes or interest paid in excess of
2.12taxes lawfully due. The designated member must be a member of the unitary business that
2.13is filing the single combined report and either:
2.14(1) a corporation that is subject to the taxes imposed by chapter 290; or
2.15(2) a corporation that is not subject to the taxes imposed by chapter 290:
2.16(i) Such corporation consents by filing the return as a designated member under this
2.17clause to remit taxes, penalties, interest, or additions to tax due from the members of the
2.18unitary business subject to tax, and receive refunds or other payments on behalf of other
2.19members of the unitary business. The member designated under this clause is a "taxpayer"
2.20for the purposes of this chapter and chapter 270C, and is liable for any liability imposed
2.21on the unitary business under this chapter and chapter 290.
2.22(ii) If the state does not otherwise have the jurisdiction to tax the member designated
2.23under this clause, consenting to be the designated member does not create the jurisdiction
2.24to impose tax on the designated member, other than as described in item (i).
2.25(iii) The member designated under this clause must apply for a business tax account
The commissioner shall adopt rules for the filing of one return on behalf of the
members of an affiliated group of corporations that are required to file a combined report.
All members of an affiliated group that are required to file a combined report must file one
return on behalf of the members of the group under rules adopted by the commissioner.
If a corporation claims on a return that it has paid tax in excess of the amount of
taxes lawfully due, that corporation must include on that return information necessary for
payment of the tax in excess of the amount lawfully due by electronic means.
2.34EFFECTIVE DATE.This section is effective for taxable years beginning after
2.35December 31, 2008.
Sec. 2. Minnesota Statutes 2008, section 289A.12, is amended by adding a subdivision
3.3 Subd. 16. Qualified intermediaries. The commissioner may by notice and demand
3.4require a qualified intermediary to file a return relating to transactions for which the
3.5intermediary acted to facilitate exchanges under section 1031 of the Internal Revenue
3.6Code. The return must include the name, address, and state or federal tax identification
3.7number or Social Security number of each of the parties to the exchange, information
3.8relating to the property subject to the exchange, and any other information required by
3.10EFFECTIVE DATE.This section is effective July 1, 2009, and applies to all
3.11transactions whether facilitated on, before, or after that date.
Sec. 3. Minnesota Statutes 2008, section 289A.18, subdivision 1, is amended to read:
Subdivision 1. Individual income, fiduciary income, corporate franchise, and
3.14entertainment taxes; partnership and S corporation returns; information returns;
3.15mining company returns.
The returns required to be made under sections
must be filed at the following times:
(1) returns made on the basis of the calendar year must be filed on April 15 following
the close of the calendar year, except that returns of corporations must be filed on March
15 following the close of the calendar year;
(2) returns made on the basis of the fiscal year must be filed on the 15th day of the
fourth month following the close of the fiscal year, except that returns of corporations
must be filed on the 15th day of the third month following the close of the fiscal year;
(3) returns for a fractional part of a year must be filed on the 15th day of the fourth
month following the end of the month in which falls the last day of the period for which
the return is made, except that the returns of corporations must be filed on the 15th day of
the third month following the end of the tax year; or, in the case of a corporation which is
a member of a unitary group, the return of the corporation must be filed on the 15th day of
the third month following the end of the tax year of the unitary group in which falls the
last day of the period for which the return is made;
(4) in the case of a final return of a decedent for a fractional part of a year, the return
must be filed on the 15th day of the fourth month following the close of the 12-month
period that began with the first day of that fractional part of a year;
(5) in the case of the return of a cooperative association, returns must be filed on or
before the 15th day of the ninth month following the close of the taxable year;
(6) if a corporation has been divested from a unitary group and files a return for
a fractional part of a year in which it was a member of a unitary business that files a
combined report under section
290.17, subdivision 4
, the divested corporation's return
must be filed on the 15th day of the third month following the close of the common
accounting period that includes the fractional year;
(7) returns of entertainment entities must be filed on April 15 following the close of
the calendar year;
(8) returns required to be filed under section
289A.08, subdivision 4
, must be filed
on the 15th day of the fifth month following the close of the taxable year;
(9) returns of mining companies must be filed on May 1 following the close of the
calendar year; and
(10) returns required to be filed with the commissioner under section
4 to 10, or 16
must be filed within 30 days after being demanded by
4.15EFFECTIVE DATE.This section is effective July 1, 2009.
Sec. 4. Minnesota Statutes 2008, section 289A.19, subdivision 4, is amended to read:
Subd. 4. Estate tax returns.
When an extension to file the federal estate tax return
4.18 has been granted under section 6081 of the Internal Revenue Code, the time for filing
4.19 the estate tax return is extended for that period. If the estate requests an extension to
4.20 file an estate tax return within the time provided in section
289A.18, subdivision 3 , the
4.21 commissioner shall extend the time for filing the estate tax return for six months. The time
4.22for filing an estate tax return shall be extended for either six months or the amount of
4.23time granted under section 6081 of the Internal Revenue Code to file the federal estate
4.24tax return, whichever is longer.
4.25EFFECTIVE DATE.This section is effective for estates of decedents dying after
4.26December 31, 2008.
Sec. 5. Minnesota Statutes 2008, section 289A.31, subdivision 5, is amended to read:
Subd. 5. Withholding tax, withholding from payments to out-of-state
4.29contractors, and withholding by partnerships and small business corporations.
Except as provided in paragraph (b), an employer or person withholding tax under section
290.923, subdivision 2
, who fails to pay to or deposit with the commissioner a
sum or sums required by those sections to be deducted, withheld, and paid, is personally
and individually liable to the state for the sum or sums, and added penalties and interest,
and is not liable to another person for that payment or payments. The sum or sums
deducted and withheld under section
290.92, subdivision 2a
or 3, or
, must be held as a special fund in trust for the state of Minnesota.
(b) If the employer or person withholding tax under section
, fails to deduct and withhold the tax in violation of those sections, and later
the taxes against which the tax may be credited are paid, the tax required to be deducted
and withheld will not be collected from the employer. This does not, however, relieve the
employer from liability for any penalties and interest otherwise applicable for failure to
deduct and withhold. This paragraph does not apply to an employer subject to paragraph
5.10(g), or to a contractor required to withhold under section 290.92, subdivision 31.
(c) Liability for payment of withholding taxes includes a responsible person or entity
described in the personal liability provisions of section
(d) Liability for payment of withholding taxes includes a third party lender or surety
described in section
(e) A partnership or S corporation required to withhold and remit tax under section
5.16290.92, subdivisions 4b and 4c
, is liable for payment of the tax to the commissioner, and a
person having control of or responsibility for the withholding of the tax or the filing of
returns due in connection with the tax is personally liable for the tax due.
(f) A payor of sums required to be withheld under section
, is liable to the state for the amount required to be deducted, and is not liable to an
out-of-state contractor for the amount of the payment.
5.22(g) If an employer fails to withhold tax from the wages of an employee when
5.23required to do so under section 290.92, subdivision 2a, by reason of treating such
5.24employee as not being an employee, then the liability for tax is equal to three percent of
5.25the wages paid to the employee. The liability for tax of an employee is not affected by
5.26the assessment or collection of tax under this paragraph. The employer is not entitled to
5.27recover from the employee any tax determined under this paragraph.
5.28EFFECTIVE DATE.This section is effective for taxes required to be withheld
5.29after June 30, 2009.
Sec. 6. Minnesota Statutes 2008, section 289A.38, subdivision 7, is amended to read:
Subd. 7. Federal tax changes.
If the amount of income, items of tax preference,
deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for
as reported to the Internal Revenue Service is changed or corrected by the
commissioner of Internal Revenue or other officer of the United States or other competent
authority, or where a renegotiation of a contract or subcontract with the United States
results in a change in income, items of tax preference, deductions, credits, or withholding
tax, or, in the case of estate tax, where there are adjustments to the taxable estate, the
taxpayer shall report the change or correction or renegotiation results in writing to the
commissioner. The report must be submitted within 180 days after the final determination
and must be in the form of either an amended Minnesota estate, withholding tax, corporate
franchise tax, or income tax return conceding the accuracy of the federal determination
or a letter detailing how the federal determination is incorrect or does not change the
Minnesota tax. An amended Minnesota income tax return must be accompanied by an
amended property tax refund return, if necessary. A taxpayer filing an amended federal
tax return must also file a copy of the amended return with the commissioner of revenue
within 180 days after filing the amended return.
6.12EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 7. Minnesota Statutes 2008, section 290.01, subdivision 19b, is amended to read:
Subd. 19b. Subtractions from federal taxable income.
For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:
(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;
(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;
(3) the amount paid to others, less the amount used to claim the credit allowed under
, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section
290.0674, subdivision 1
, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
290.0674, subdivision 1
, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. No
7.5deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
7.6the qualifying child's vehicle to provide such transportation for a qualifying child.
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;
(4) income as provided under section
(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section
(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and
under the provisions of Public Law 109-1;
(7) for taxable years beginning before January 1, 2008, the amount of the federal
small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
which is included in gross income under section 87 of the Internal Revenue Code;
(8) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section
290.06, subdivision 22
, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;
(9) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition. The resulting delayed depreciation cannot be
less than zero;
(10) job opportunity building zone income as provided under section
(11) to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service performed in Minnesota, excluding compensation
for services performed under the Active Guard Reserve (AGR) program. For purposes of
this clause, "active service" means (i) state active service as defined in section
, clause (1); (ii) federally funded state active service as defined in section
8.10190.05, subdivision 5b
; or (iii) federal active service as defined in section
, but "active service" excludes service performed in accordance with section
8.12190.08, subdivision 3
(12) to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States or
United Nations for active duty performed outside Minnesota under United States Code,
title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
the United Nations;
(13) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;
(14) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
case of a shareholder of a corporation that is an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
subtraction is not allowed under this clause;
(15) to the extent included in federal taxable income, compensation paid to a service
member as defined in United States Code, title 10, section 101(a)(5), for military service
as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);
(16) international economic development zone income as provided under section
(17) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
9.12EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 8. Minnesota Statutes 2008, section 290.0671, subdivision 1, is amended to read:
Subdivision 1. Credit allowed.
(a) An individual is allowed a credit against the tax
imposed by this chapter equal to a percentage of earned income. To receive a credit, a
taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.
(b) For individuals with no qualifying children, the credit equals
the first $4,620 of earned income. The credit is reduced by
percent of earned
income or adjusted gross income, whichever is greater, in excess of $5,770, but in no
case is the credit less than zero.
(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first
$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than
$13,450. The credit is reduced by
percent of earned income or adjusted gross income,
whichever is greater, in excess of $15,080, but in no case is the credit less than zero.
(d) For individuals with two or more qualifying children, the credit equals ten
percent of the first $9,720 of earned income and 20 percent of earned income over
$14,860 but less than $16,800. The credit is reduced by 10.3 percent of earned income
or adjusted gross income, whichever is greater, in excess of $17,890, but in no case is
the credit less than zero.
(e) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section
290.06, subdivision 2c
, paragraph (e).
(f) For a person who was a resident for the entire tax year and has earned income
not subject to tax under this chapter, including income excluded under section
, clause (10) or (16), the credit must be allocated based on the ratio of
federal adjusted gross income reduced by the earned income not subject to tax under
this chapter over federal adjusted gross income. For purposes of this paragraph, the
subtractions for military pay under section
290.01, subdivision 19b
, clauses (11) and (12),
are not considered "earned income not subject to tax under this chapter."
For the purposes of this paragraph, the exclusion of combat pay under section 112
of the Internal Revenue Code is not considered "earned income not subject to tax under
(g) For tax years beginning after December 31, 2001, and before December 31,
10.8 2004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
10.9 paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
10.10 $1,000 for married taxpayers filing joint returns.
10.11 (h) For tax years beginning after December 31, 2004, and before December 31,
10.12 2007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
10.13 paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
10.14 $2,000 for married taxpayers filing joint returns.
10.15 (i) (g)
For tax years beginning after December 31, 2007, and before December
31, 2010, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
$3,000 for married taxpayers filing joint returns. For tax years beginning after December
31, 2008, the commissioner shall annually adjust the
is adjusted annually for
10.20 inflation under subdivision 7. by the percentage determined pursuant to the provisions
10.21of section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word
10.22"2007" shall be substituted for the word "1992." For 2009, the commissioner shall then
10.23determine the percent change from the 12 months ending on August 31, 2007, to the 12
10.24months ending on August 31, 2008, and in each subsequent year, from the 12 months
10.25ending on August 31, 2007, to the 12 months ending on August 31 of the year preceding
10.26the taxable year. The earned income thresholds as adjusted for inflation must be rounded
10.27to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10.
10.28The determination of the commissioner under this subdivision is not a rule under the
10.29Administrative Procedure Act.
10.30 (j) (h)
The commissioner shall construct tables showing the amount of the credit
at various income levels and make them available to taxpayers. The tables shall follow
the schedule contained in this subdivision, except that the commissioner may graduate
the transition between income brackets.
10.34EFFECTIVE DATE.This section is effective for taxable years beginning after
10.35December 31, 2008.
Sec. 9. Minnesota Statutes 2008, section 290A.10, is amended to read:
11.2290A.10 PROOF OF TAXES PAID.
Every claimant who files a claim for relief for property taxes payable shall include
with the claim a property tax statement or a reproduction thereof in a form deemed
satisfactory by the commissioner of revenue indicating that there are no delinquent
property taxes on the homestead. Indication on the property tax statement from the county
treasurer that there are no delinquent taxes on the homestead shall be sufficient proof.
Taxes included in a confession of judgment under section 277.23 or
constitute delinquent taxes as long as the claimant is current on the payments required to
be made under section 277.23 or
11.11EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2008, section 290A.14, is amended to read:
11.13290A.14 PROPERTY TAX STATEMENT.
The county treasurer shall prepare and send a sufficient number of copies of the
property tax statement to the owner, and to the owner's escrow agent if the taxes are
paid via an escrow account, to enable the owner to comply with the filing requirements
of this chapter and to retain one copy as a record. The property tax statement, in a form
prescribed by the commissioner, shall indicate the manner in which the claimant may
claim relief from the state under both this chapter and chapter 290B, and the amount of the
tax for which the applicant may claim relief. The statement shall also indicate if there
are delinquent property taxes on the property in the preceding year. Taxes included in a
confession of judgment under section 277.23 or
shall not constitute delinquent
taxes as long as the claimant is current on the payments required to be made under section
11.25EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 11. REPEALER.
11.27Minnesota Rules, part 8009.3000, is repealed.
11.28EFFECTIVE DATE.This section is effective the day following final enactment.
Section 1. Minnesota Statutes 2008, section 297A.70, subdivision 2, is amended to
Subd. 2. Sales to government.
(a) All sales, except those listed in paragraph (b),
to the following governments and political subdivisions, or to the listed agencies or
instrumentalities of governments and political subdivisions, are exempt:
(1) the United States and its agencies and instrumentalities;
(2) school districts, the University of Minnesota, state universities, community
colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts
Education, and an instrumentality of a political subdivision that is accredited as an
optional/special function school by the North Central Association of Colleges and Schools;
(3) hospitals and nursing homes owned and operated by political subdivisions of
the state of tangible personal property and taxable services used at or by hospitals and
(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
operations provided for in section
(5) other states or political subdivisions of other states, if the sale would be exempt
from taxation if it occurred in that state; and
(6) sales to public libraries, public library systems, multicounty, multitype library
systems as defined in section
, county law libraries under chapter 134A, state
agency libraries, the state library under section
, and the Legislative Reference
(b) This exemption does not apply to the sales of the following products and services:
(1) building, construction, or reconstruction materials purchased by a contractor
or a subcontractor as a part of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;
(2) construction materials purchased by tax exempt entities or their contractors to
be used in constructing buildings or facilities which will not be used principally by the
tax exempt entities;
(3) the leasing of a motor vehicle as defined in section
297B.01, subdivision 11
except for leases entered into by the United States or its agencies or instrumentalities; or
(4) lodging as defined under section
297A.61, subdivision 3
, paragraph (g), clause
(2), and prepared food, candy,
soft drinks, and alcoholic beverages as defined in
13.1section 297A.67, subdivision 2,
except for lodging, prepared food, candy,
drinks, and alcoholic beverages
purchased directly by the United States or its agencies
(c) As used in this subdivision, "school districts" means public school entities and
districts of every kind and nature organized under the laws of the state of Minnesota, and
any instrumentality of a school district, as defined in section
13.7EFFECTIVE DATE.This section is effective for sales and purchases made after
13.8June 30, 2009.
Sec. 2. Minnesota Statutes 2008, section 297A.70, subdivision 4, is amended to read:
Subd. 4. Sales to nonprofit groups.
(a) All sales, except those listed in paragraph
(b), to the following "nonprofit organizations" are exempt:
(1) a corporation, society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or educational purposes if the item
purchased is used in the performance of charitable, religious, or educational functions; and
(2) any senior citizen group or association of groups that:
(i) in general limits membership to persons who are either age 55 or older, or
(ii) is organized and operated exclusively for pleasure, recreation, and other
nonprofit purposes, not including housing,
no part of the net earnings of which inures to
the benefit of any private shareholders
13.21(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
For purposes of this subdivision, charitable purpose includes the maintenance of a
cemetery owned by a religious organization.
(b) This exemption does not apply to the following sales:
(1) building, construction, or reconstruction materials purchased by a contractor
or a subcontractor as a part of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;
(2) construction materials purchased by tax-exempt entities or their contractors to
be used in constructing buildings or facilities that will not be used principally by the
tax-exempt entities; and
(3) lodging as defined under section
297A.61, subdivision 3
, paragraph (g), clause
(2), and prepared food, candy,
soft drinks, and alcoholic beverages as defined in
14.1section 297A.67, subdivision 2, except wine purchased by an established religious
14.2organization for sacramental purposes
(4) leasing of a motor vehicle as defined in section
297B.01, subdivision 11
as provided in paragraph (c).
(c) This exemption applies to the leasing of a motor vehicle as defined in section
14.6297B.01, subdivision 11
, only if the vehicle is:
(1) a truck, as defined in section
, a bus, as defined in section
, or a
passenger automobile, as defined in section
, if the automobile is designed and
used for carrying more than nine persons including the driver; and
(2) intended to be used primarily to transport tangible personal property or
individuals, other than employees, to whom the organization provides service in
performing its charitable, religious, or educational purpose.
(d) A limited liability company also qualifies for exemption under this subdivision if
(1) it consists of a sole member that would qualify for the exemption, and (2) the items
purchased qualify for the exemption.
14.16EFFECTIVE DATE.This section is effective for sales and purchases made after
14.17June 30, 2009, except that the amendment to paragraph (a) is effective the day following
Sec. 3. Minnesota Statutes 2008, section 297A.992, subdivision 2, is amended to read:
Subd. 2. Authorization; rates.
(a) Notwithstanding section
1, 2, and 3, or
, or any other law, the board of a county participating in a
joint powers agreement as specified in this section shall impose by resolution (1) a
transportation sales and use tax at a rate of one-quarter of one percent on retail sales and
uses taxable under this chapter, and (2) an excise tax of $20 per motor vehicle, as defined
14.25in section 297B.01, subdivision 5,
purchased or acquired from any person engaged in the
business of selling motor vehicles at retail, occurring within the jurisdiction of the taxing
authority. The taxes authorized are to fund transportation improvements as specified in
this section, including debt service on obligations issued to finance such improvements
pursuant to subdivision 7.
(b) The tax imposed under this section is not included in determining if the total tax
on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.
14.34EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 4. Minnesota Statutes 2008, section 297A.993, subdivision 1, is amended to read:
Subdivision 1. Authorization; rates.
subdivisions 1, 2, 3, 5, and 13, or
, or any other law, the board of a county outside
the metropolitan transportation area, as defined under section
297A.992, subdivision 1
more than one county outside the metropolitan transportation area acting under a joint
powers agreement, may impose (1) a transportation sales tax at a rate of up to one-half of
one percent on retail sales and uses taxable under this chapter, and (2) an excise tax of $20
per motor vehicle, as defined in section 297B.01, subdivision 5,
purchased or acquired
from any person engaged in the business of selling motor vehicles at retail, occurring
within the jurisdiction of the taxing authority. The taxes imposed under this section are
subject to approval by a majority of the voters in each of the counties affected at a general
election who vote on the question to impose the taxes.
15.13EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 5. REPEALER.
15.15Minnesota Statutes 2008, section 297A.67, subdivision 24, is repealed.
15.16EFFECTIVE DATE.This section is effective the day following final enactment.
Section 1. Minnesota Statutes 2008, section 287.04, is amended to read:
The tax imposed by section
does not apply to:
(a) A decree of marriage dissolution or an instrument made pursuant to it.
(b) A mortgage given to correct a misdescription of the mortgaged property.
(c) A mortgage or other instrument that adds additional security for the same debt
for which mortgage registry tax has been paid.
(d) A contract for the conveyance of any interest in real property, including a
contract for deed.
(e) A mortgage secured by real property subject to the minerals production tax of
(f) The principal amount of a mortgage loan made under a low and moderate
income or other affordable housing program, if the mortgagee is a federal, state, or local
(g) Mortgages granted by fraternal benefit societies subject to section
(h) A mortgage amendment or extension, as defined in section
(i) An agricultural mortgage if the proceeds of the loan secured by the mortgage are
used to acquire or improve real property classified under section
273.13, subdivision 23
, clause (1), (2), or (3)
(j) A mortgage on an armory building as set forth in section
16.6EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 2. Minnesota Statutes 2008, section 287.05, is amended by adding a subdivision
16.9 Subd. 9. Modification of mortgage. If a mortgage, or a document modifying a
16.10mortgage, contains more than one statement that purports to limit: the enforcement of
16.11the mortgage to a certain dollar amount; the tax imposed on the mortgage under this
16.12chapter; or the effect of a modifying document, including but not limited to the statements
16.13authorized in subdivisions 1, 1a, and 8, then the tax must be imposed based on the
16.14combined effect, if any, of all the statements.
16.15EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 3. Minnesota Statutes 2008, section 287.22, is amended to read:
The tax imposed by section
does not apply to:
(1) an executory contract for the sale of real property under which the purchaser is
entitled to or does take possession of the real property, or any assignment or cancellation
of the contract;
(2) a mortgage or an amendment, assignment, extension, partial release, or
satisfaction of a mortgage;
(3) a will;
(4) a plat;
(5) a lease, amendment of lease, assignment of lease, or memorandum of lease;
(6) a deed, instrument, or writing in which the United States or any agency or
instrumentality thereof is the grantor, assignor, transferor, conveyor, grantee, or assignee;
(7) a deed for a cemetery lot or lots;
(8) a deed of distribution by a personal representative;
(9) a deed to or from a co-owner partitioning their undivided interest in the same
piece of real property;
(10) a deed or other instrument of conveyance issued pursuant to a permanent school
fund land exchange under section
and related laws;
(11) a referee's or sheriff's certificate of sale in a mortgage or lien foreclosure sale;
(12) a referee's, sheriff's, or certificate holder's certificate of redemption from a
mortgage or lien foreclosure sale issued under section 580.23 or other statute applicable to
redemption by an owner of real property;
(13) a deed, instrument, or writing which grants, creates, modifies, or terminates
(14) a decree of marriage dissolution, as defined in section
287.01, subdivision 4
or a deed or other instrument between the parties to the dissolution made pursuant to the
terms of the decree; and
(15) a transfer on death deed under section
507.071, and any affidavit or other
17.13document to the extent it references a transfer on death deed
17.14EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 4. Minnesota Statutes 2008, section 287.25, is amended to read:
17.16287.25 PAYMENT OF TAX
Except for documents filed electronically,
the county board shall determine the
17.18 method for collection of the tax imposed by section
17.19 (1) The tax imposed by section
287.21 may be paid by the affixing of a documentary
17.20 stamp or stamps in the amount of the tax to the document or instrument with respect to
17.21 which the tax is paid, provided that the county board may permit the payment of the
17.22 tax without the affixing of the documentary stamps and in such cases shall direct the
17.23 treasurer to endorse a receipt for such tax upon the face of the document or instrument.
17.24 Documents submitted electronically must have the deed tax data affixed electronically and
17.25 the tax paid as provided in section
the tax imposed by section
be paid in the manner prescribed by
relating to payment of mortgage registration tax, and the treasurer must
17.28endorse a receipt for the tax on the face of the document or instrument
17.29EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 5. Minnesota Statutes 2008, section 295.56, is amended to read:
17.31295.56 TRANSFER OF ACCOUNTS RECEIVABLE.
When a hospital
or, surgical center,
health care provider, or wholesale drug
transfers, assigns, or sells accounts receivable to another person who is subject
to tax under this chapter, liability for the tax on the accounts receivable is imposed on the
transferee, assignee, or buyer of the accounts receivable. No liability for these accounts
receivable is imposed on the transferor, assignor, or seller of the accounts receivable.
18.4EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 6. Minnesota Statutes 2008, section 295.57, subdivision 5, is amended to read:
Subd. 5. Exemption for amounts paid for legend drugs.
If a hospital, surgical
or health care provider cannot determine the actual cost or reimbursement of
legend drugs under the exemption provided in section
295.53, subdivision 1
, the following method must be used:
A hospital, surgical center,
or health care provider must determine the amount paid
for legend drugs used during the month or quarter and multiply that amount by a ratio,
the numerator of which is the total amount received for taxable patient services, and the
denominator of which is the total amount received for all patient services, including
amounts exempt under section
295.53, subdivision 1
. The result represents the allowable
exemption for the monthly or quarterly cost of drugs.
18.16EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 7. Minnesota Statutes 2008, section 296A.21, subdivision 1, is amended to read:
Subdivision 1. General rules.
(a) The commissioner shall make determinations,
corrections, assessments, and refunds with respect to taxes and fees under this chapter,
including interest, additions to taxes, and assessable penalties. Except as otherwise
provided in this section, the amount of taxes assessable must be assessed within 3-1/2
years after the date the return is filed. For purposes of this section, a tax return filed before
18.23the last day prescribed by law for filing is considered to be filed on the last day.
(b) A claim for a refund of an overpayment of state tax or fees must be filed within
3-1/2 years from the date prescribed for filing the return, plus any extension of time
granted for filing the return, but only if filed within the extended time; or the claim must
be filed within one year from the date of an order assessing tax or fees, or from the date of
a return filed by the commissioner, upon payment in full of the tax, fees, penalties, and
interest shown on the order or return, whichever period expires later.
18.30EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 8. Minnesota Statutes 2008, section 297E.02, subdivision 4, is amended to read:
Subd. 4. Pull-tab and tipboard tax.
(a) A tax is imposed on the sale of each deal
of pull-tabs and tipboards sold by a distributor. The rate of the tax is 1.7 percent of the
ideal gross of the pull-tab or tipboard deal. The sales tax imposed by chapter 297A on the
sale of the pull-tabs and tipboards by the distributor is imposed on the retail sales price
less the tax imposed by this subdivision. The retail sale of pull-tabs or tipboards by the
organization is exempt from taxes imposed by chapter 297A and is exempt from all local
taxes and license fees except a fee authorized under section
349.16, subdivision 8
(b) The liability for the tax imposed by this section is incurred when the pull-tabs
and tipboards are delivered by the distributor to the customer or to a common or contract
carrier for delivery to the customer, or when received by the customer's authorized
representative at the distributor's place of business, regardless of the distributor's method
of accounting or the terms of the sale.
The tax imposed by this subdivision is imposed on all sales of pull-tabs and
tipboards, except the following:
(1) sales to the governing body of an Indian tribal organization for use on an Indian
(2) sales to distributors licensed under the laws of another state or of a province of
Canada, as long as all statutory and regulatory requirements are met in the other state or
(3) sales of promotional tickets as defined in section
(4) pull-tabs and tipboards sold to an organization that sells pull-tabs and tipboards
under the exemption from licensing in section
349.166, subdivision 2
. A distributor shall
require an organization conducting exempt gambling to show proof of its exempt status
before making a tax-exempt sale of pull-tabs or tipboards to the organization. A distributor
shall identify, on all reports submitted to the commissioner, all sales of pull-tabs and
tipboards that are exempt from tax under this subdivision.
(c) A distributor having a liability of
or more during a fiscal year
ending June 30 must remit all liabilities in the subsequent calendar year by electronic
(d) Any customer who purchases deals of pull-tabs or tipboards from a distributor
may file an annual claim for a refund or credit of taxes paid pursuant to this subdivision
for unsold pull-tab and tipboard tickets. The claim must be filed with the commissioner on
a form prescribed by the commissioner by March 20 of the year following the calendar
year for which the refund is claimed. The refund must be filed as part of the customer's
February monthly return. The refund or credit is equal to 1.7 percent of the face value
of the unsold pull-tab or tipboard tickets, provided that the refund or credit will be 1.75
percent of the face value of the unsold pull-tab or tipboard tickets for claims for a refund
or credit of taxes filed on the February 2001 monthly return. The refund claimed will be
applied as a credit against tax owing under this chapter on the February monthly return. If
the refund claimed exceeds the tax owing on the February monthly return, that amount
will be refunded. The amount refunded will bear interest pursuant to section
from 90 days after the claim is filed.
20.7EFFECTIVE DATE.This section is effective for payments due in calendar year
20.82010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30,
20.92009, and in fiscal years thereafter.
Sec. 9. Minnesota Statutes 2008, section 297E.06, is amended by adding a subdivision
20.12 Subd. 1a. Required signatures. The gambling manager and the chief executive
20.13officer of the organization, or their respective designees, and the person who completed
20.14the tax return must sign the tax return. The organization shall inform the commissioner of
20.15revenue in writing of the identity of the designees as soon as practicable in the form and
20.16manner prescribed by the commissioner.
20.17EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2008, section 297E.11, subdivision 1, is amended to read:
Subdivision 1. General rule.
Except as otherwise provided in this chapter, the
amount of taxes assessable must be assessed within 3-1/2 years after the return is filed,
whether or not the return is filed on or after the date prescribed. A return must not be
treated as filed until it is in processible form. A return is in processible form if it is filed
on a permitted form and contains sufficient data to identify the taxpayer and permit the
mathematical verification of the tax liability shown on the return. For purposes of this
20.25section, a tax return filed before the last day prescribed by law for filing is considered to
20.26be filed on the last day.
20.27EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 11. Minnesota Statutes 2008, section 297F.09, subdivision 7, is amended to read:
Subd. 7. Electronic payment.
A cigarette or tobacco products distributor having a
or more during a fiscal year ending June 30 must remit all
liabilities in the subsequent calendar year by electronic means.
21.1EFFECTIVE DATE.This section is effective for payments due in calendar year
21.22010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30,
21.32009, and in fiscal years thereafter.
Sec. 12. Minnesota Statutes 2008, section 297G.09, subdivision 6, is amended to read:
Subd. 6. Electronic payments.
A licensed brewer, importer, or wholesaler having
an excise tax liability of
or more during a fiscal year ending June 30
must remit all excise tax liabilities in the subsequent calendar year by electronic means.
21.8EFFECTIVE DATE.This section is effective for payments due in calendar year
21.92010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30,
21.102009, and in fiscal years thereafter.
Sec. 13. Minnesota Statutes 2008, section 297I.30, is amended by adding a subdivision
21.13 Subd. 9. Extensions for filing returns. When, in the commissioner's judgment,
21.14good cause exists, the commissioner may extend the time for filing returns for not more
21.15than six months.
21.16EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 14. Minnesota Statutes 2008, section 297I.35, subdivision 2, is amended to read:
Subd. 2. Electronic payments.
If the aggregate amount of tax and surcharges
due under this chapter during a calendar year is equal to or exceeds
or if the taxpayer is required to make payment of any other tax to the commissioner by
electronic means, then all tax and surcharge payments in the subsequent calendar year
must be paid by electronic means.
21.23EFFECTIVE DATE.This section is effective for payments due in calendar year
21.242010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30,
21.252009, and in fiscal years thereafter.
Sec. 15. Minnesota Statutes 2008, section 298.28, subdivision 11, is amended to read:
Subd. 11. Remainder.
(a) The proceeds of the tax imposed by section
which remain after the distributions and payments in subdivisions 2 to 10a, as certified
by the commissioner of revenue, and paragraphs (b), (c), and
, and (e)
made, together with interest earned on all money distributed under this section prior to
distribution, shall be divided between the taconite environmental protection fund created
and the Douglas J. Johnson economic protection trust fund created in
as follows: Two-thirds to the taconite environmental protection fund and
one-third to the Douglas J. Johnson economic protection trust fund. The proceeds shall be
placed in the respective special accounts.
(b) There shall be distributed to each city, town, and county the amount that it
received under section
in calendar year 1977; provided, however, that the amount
distributed in 1981 to the unorganized territory number 2 of Lake County and the town
of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be
distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake
County and the towns of Beaver Bay and Stony River based on the miles of track of Erie
Mining Company in each taxing district.
(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board
the amounts it received in 1977 under section
. The amount distributed under
this paragraph shall be expended within or for the benefit of the taconite assistance area
defined in section
(d) There shall be distributed to each school district 62 percent of the amount that it
received under section
in calendar year 1977.
(e) In 2003 only, $100,000 must be distributed to a township located in a taconite
22.19 tax relief area as defined in section
273.134, paragraph (a) , that received $119,259 of
22.20 homestead and agricultural credit aid and $182,014 in local government aid in 2001.
22.21EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 16. Minnesota Statutes 2008, section 473.843, subdivision 3, is amended to read:
Subd. 3. Payment of fee.
On or before the 20th day of each month each operator
shall pay the fee due under this section for the previous month, using a form provided
by the commissioner of revenue.
An operator having a fee of
or more during a fiscal year ending
June 30 must pay all fees in the subsequent calendar year by electronic means.
22.28EFFECTIVE DATE.This section is effective for payments due in calendar year
22.292010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30,
22.302009, and in fiscal years thereafter.
Sec. 17. REPEALER.
22.32Minnesota Statutes 2008, sections 287.26; 287.27, subdivision 1; and 298.28,
22.33subdivisions 11a and 13, are repealed.
23.1EFFECTIVE DATE.This section is effective the day following final enactment.
23.3PROPERTY TAXES AND AIDS
Section 1. Minnesota Statutes 2008, section 273.11, subdivision 23, is amended to read:
Subd. 23. First tier valuation limit; agricultural homestead property.
Beginning with assessment year 2006,
The commissioner of revenue shall annually certify
the first tier limit for agricultural homestead property
as. For assessment year 2010, the
23.8limit is $1,140,000. Beginning with assessment year 2011, the limit is
the product of (i)
$600,000 the first tier limit for the preceding assessment year
, and (ii) the ratio of the
statewide average taxable market value of agricultural property per acre of deeded farm
land in the preceding assessment year to the statewide average taxable market value of
agricultural property per acre of deeded farm land for the second preceding
. The limit shall be rounded to the nearest $10,000.
(b) For the purposes of this subdivision, "agricultural property" means all class
property under section
, subdivision 23, except for
(1) timberland, (2) a
23.16 landing area or public access area of a privately owned public use airport, and (3)
consisting of the house, garage, and immediately surrounding one acre of land of an
(c) The commissioner shall certify the limit by January 2 of each assessment year
23.20 except that for assessment year 2006 the commissioner shall certify the limit by June
23.21 1, 2006
23.22EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
Sec. 2. Minnesota Statutes 2008, section 273.111, subdivision 4, is amended to read:
Subd. 4. Determination of value.
(a) The value of any real estate described
in subdivision 3 shall upon timely application by the owner, in the manner provided
in subdivision 8, be determined solely with reference to its appropriate agricultural
classification and value notwithstanding sections
272.03, subdivision 8
Furthermore, the assessor shall not consider any added values resulting from
nonagricultural factors. In order to account for the presence of nonagricultural influences
that may affect the value of agricultural land, the commissioner of revenue shall develop a
fair and uniform method of determining agricultural values for each county in the state
that are consistent with this subdivision. The commissioner shall annually assign the
resulting values to each county, and these values shall be used as the basis for determining
the agricultural value for all properties in the county qualifying for tax deferment under
(b) In the case of property qualifying for tax deferment only under subdivision 3a,
value shall be based on the value in effect for assessment year 2008, multiplied by
24.6 the ratio of the total taxable market value of all property in the county for the current
24.7 assessment year divided by the total taxable market value of all property in the county for
24.8 assessment year 2008 assessor shall not consider the presence of commercial, industrial,
24.9residential, or seasonal recreational land use influences in determining the value for ad
24.10valorem tax purposes; provided that in no case shall the value exceed the value prescribed
24.11by the commissioner of revenue for class 2a tillable property in that county
24.12EFFECTIVE DATE.This section is effective for assessment year 2009 and
Sec. 3. Minnesota Statutes 2008, section 273.1115, subdivision 2, is amended to read:
Subd. 2. Requirement.
Real estate is entitled to valuation under this section only if
all of the following requirements are met:
(1) the property is classified as class
1a, 1b, 2a, or 2b property under section
subdivisions 22 and 23, or the property is classified as class 2e under section 273.13,
24.19subdivision 23, and immediately before being classified as class 2e was classified as
24.20class 1a or 1b
(2) the property is at least ten contiguous acres, when the application is filed under
(3) the owner has filed a completed application for deferment as specified in
subdivision 3 with the county assessor in the county in which the property is located;
(4) there are no delinquent taxes on the property; and
(5) a covenant on the land restricts its use as provided in subdivision 3, clause (4).
24.27EFFECTIVE DATE.This section is effective for taxes payable in 2010 and
Sec. 4. Minnesota Statutes 2008, section 273.1231, subdivision 8, is amended to read:
Subd. 8. Utility property.
"Utility property" means property appraised and
classified for tax purposes by order of
the commissioner of revenue under sections
24.33EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 5. Minnesota Statutes 2008, section 273.124, subdivision 3, is amended to read:
Subd. 3. Cooperatives and charitable corporations; homestead and other
(a) When property is owned by a corporation or association organized under
chapter 308A or 308B, and each person who owns a share or shares in the corporation or
association is entitled to occupy a building on the property, or a unit within a building
on the property, the corporation or association may claim homestead treatment for each
dwelling, or for each unit in the case of a building containing several dwelling units, or for
the part of the value of the building occupied by a shareholder. Each building or unit must
be designated by legal description or number. The net tax capacity of each building or
unit that qualifies for assessment as a homestead under this subdivision must include not
more than one-half acre of land, if platted, nor more than 80 acres if unplatted. The net
tax capacity of the property is the sum of the net tax capacities of each of the respective
buildings or units comprising the property, including the net tax capacity of each unit's
or building's proportionate share of the land and any common buildings. To qualify for
the treatment provided by this subdivision, the corporation or association must be wholly
owned by persons having a right to occupy a building or unit owned by the corporation
or association. A charitable corporation organized under the laws of Minnesota and not
otherwise exempt thereunder with no outstanding stock qualifies for homestead treatment
with respect to member residents of the dwelling units who have purchased and hold
residential participation warrants entitling them to occupy the units.
(b) To the extent provided in paragraph (a), a cooperative or corporation organized
under chapter 308A or 308B
may obtain separate assessment and valuation, and separate
property tax statements for each residential homestead, residential nonhomestead, or for
each seasonal residential recreational building or unit not used for commercial purposes.
The appropriate class rates under section
shall be applicable as if each building or
unit were a separate tax parcel; provided, however, that the tax parcel which exists at the
time the cooperative or corporation makes application under this subdivision shall be a
single parcel for purposes of property taxes or the enforcement and collection thereof,
other than as provided in paragraph (a) or this paragraph.
(c) A member of a corporation or association may initially obtain the separate
assessment and valuation and separate property tax statements, as provided in paragraph
(b), by applying to the assessor by June 30 of the assessment year.
(d) When a building, or dwelling units within a building, no longer qualify under
paragraph (a) or (b), the current owner must notify the assessor within 30 days. Failure to
notify the assessor within 30 days shall result in the loss of benefits under paragraph (a) or
(b) for taxes payable in the year that the failure is discovered. For these purposes, "benefits
under paragraph (a) or (b)" means the difference in the net tax capacity of the building or
units which no longer qualify as computed under paragraph (a) or (b) and as computed
under the otherwise applicable law, times the local tax rate applicable to the building for
that taxes payable year. Upon discovery of a failure to notify, the assessor shall inform the
auditor of the difference in net tax capacity for the building or buildings in which units no
longer qualify, and the auditor shall calculate the benefits under paragraph (a) or (b). Such
amount, plus a penalty equal to 100 percent of that amount, shall then be demanded of the
building's owner. The property owner may appeal the county's determination by serving
copies of a petition for review with county officials as provided in section
filing a proof of service as provided in section
with the Minnesota Tax Court within
60 days of the date of the notice from the county. The appeal shall be governed by the Tax
Court procedures provided in chapter 271, for cases relating to the tax laws as defined in
271.01, subdivision 5
; disregarding sections
273.125, subdivision 5
but including section
278.05, subdivision 2
. If the amount of the benefits under paragraph
(a) or (b) and penalty are not paid within 60 days, and if no appeal has been filed, the
county auditor shall certify the amount of the benefit and penalty to the succeeding year's
tax list to be collected as part of the property taxes on the affected property.
Sec. 6. Minnesota Statutes 2008, section 273.124, subdivision 3a, is amended to read:
Subd. 3a. Manufactured home park cooperative.
When a manufactured home
park is owned by a corporation or association organized under chapter 308A or 308B
and each person who owns a share or shares in the corporation or association is entitled
to occupy a lot within the park, the corporation or association may claim homestead
treatment for each lot occupied by a shareholder. Each lot must be designated by legal
description or number, and each lot is limited to not more than one-half acre of land for
each homestead. The manufactured home park shall be valued and assessed as if it were
homestead property within class 1 if all of the following criteria are met:
(1) the occupant is using the property as a permanent residence;
(2) the occupant or the cooperative association is paying the ad valorem property
taxes and any special assessments levied against the land and structure either directly, or
indirectly through dues to the corporation; and
(3) the corporation or association organized under chapter 308A or 308B
owned by persons having a right to occupy a lot owned by the corporation or association.
A charitable corporation, organized under the laws of Minnesota with no outstanding
stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt
status, qualifies for homestead treatment with respect to member residents of the
manufactured home park who hold residential participation warrants entitling them to
occupy a lot in the manufactured home park.
Sec. 7. Minnesota Statutes 2008, section 273.124, subdivision 13, is amended to read:
Subd. 13. Homestead application.
(a) A person who meets the homestead
requirements under subdivision 1 must file a homestead application with the county
assessor to initially obtain homestead classification.
(b) The format and contents of a uniform homestead application shall be prescribed
by the commissioner of revenue. The application must clearly inform the taxpayer that
this application must be signed by all owners who occupy the property or by the qualifying
relative and returned to the county assessor in order for the property to receive homestead
(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number of each occupant who is listed as an owner
of the property on the deed of record, the name and address of each owner who does not
occupy the property, and the name and Social Security number of each owner's spouse who
occupies the property. The application must be signed by each owner who occupies the
property and by each owner's spouse who occupies the property
, or, in the case of property
27.18 that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative
If a property owner occupies a homestead, the property owner's spouse may not
claim another property as a homestead unless the property owner and the property owner's
spouse file with the assessor an affidavit or other proof required by the assessor stating that
the property qualifies as a homestead under subdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spouses and previously
occupied with the other spouse, either of whom fail to include the other spouse's name
and Social Security number on the homestead application or provide the affidavits or
other proof requested, will be deemed to have elected to receive only partial homestead
treatment of their residence. The remainder of the residence will be classified as
nonhomestead residential. When an owner or spouse's name and Social Security number
appear on homestead applications for two separate residences and only one application is
signed, the owner or spouse will be deemed to have elected to homestead the residence for
which the application was signed.
The Social Security numbers, state or federal tax returns or tax return information,
including the federal income tax schedule F required by this section, or affidavits or other
proofs of the property owners and spouses submitted under this or another section to
support a claim for a property tax homestead classification are private data on individuals
as defined by section
13.02, subdivision 12
, but, notwithstanding that section, the private
data may be disclosed to the commissioner of revenue, or, for purposes of proceeding
under the Revenue Recapture Act to recover personal property taxes owing, to the county
(d) If residential real estate is occupied and used for purposes of a homestead by
a relative of the owner and qualifies for a homestead under subdivision 1, paragraph
(c) or (d)
, in order for the property to receive homestead status, a homestead application
must be filed with the assessor. The application must be signed by each relative of an
28.9owner who occupies the property and by each relative's spouse who also occupies the
The Social Security number of each relative and spouse of a relative occupying
the property shall be required on the homestead application filed under this subdivision.
If a different relative of the owner subsequently occupies the property, the owner of the
property must notify the assessor within 30 days of the change in occupancy. The Social
Security number of a relative or relative's spouse occupying the property is private data
on individuals as defined by section
13.02, subdivision 12
, but may be disclosed to the
commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture
Act to recover personal property taxes owing, to the county treasurer.
(e) The homestead application shall also notify the property owners that the
application filed under this section will not be mailed annually and that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or
the owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section
. Failure to
notify the assessor within 30 days that the property has been sold, transferred, or that the
owner, the spouse of the owner, or the relative is no longer occupying the property as a
homestead, shall result in the penalty provided under this subdivision and the property
will lose its current homestead status.
(f) If the homestead application is not returned within 30 days, the county will send a
second application to the present owners of record. The notice of proposed property taxes
prepared under section
275.065, subdivision 3
, shall reflect the property's classification. If
a homestead application has not been filed with the county by December 15, the assessor
shall classify the property as nonhomestead for the current assessment year for taxes
payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section
(g) At the request of the commissioner, each county must give the commissioner a
list that includes the name and Social Security number of each occupant of homestead
property who is the property owner, property owner's spouse, qualifying relative of a
property owner, or a spouse of a qualifying relative. The commissioner shall use the
information provided on the lists as appropriate under the law, including for the detection
of improper claims by owners, or relatives of owners, under chapter 290A.
(h) If the commissioner finds that a property owner may be claiming a fraudulent
homestead, the commissioner shall notify the appropriate counties. Within 90 days of
the notification, the county assessor shall investigate to determine if the homestead
classification was properly claimed. If the property owner does not qualify, the county
assessor shall notify the county auditor who will determine the amount of homestead
benefits that had been improperly allowed. For the purpose of this section, "homestead
benefits" means the tax reduction resulting from the classification as a homestead under
, the taconite homestead credit under section
, the residential
homestead and agricultural homestead credits under section
, and the
supplemental homestead credit under section
The county auditor shall send a notice to the person who owned the affected property
at the time the homestead application related to the improper homestead was filed,
demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
of the homestead benefits. The person notified may appeal the county's determination
by serving copies of a petition for review with county officials as provided in section
and filing proof of service as provided in section
with the Minnesota Tax
Court within 60 days of the date of the notice from the county. Procedurally, the appeal
is governed by the provisions in chapter 271 which apply to the appeal of a property tax
assessment or levy, but without requiring any prepayment of the amount in controversy. If
the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
has been filed, the county auditor shall certify the amount of taxes and penalty to the county
treasurer. The county treasurer will add interest to the unpaid homestead benefits and
penalty amounts at the rate provided in section
for real property taxes becoming
delinquent in the calendar year during which the amount remains unpaid. Interest may be
assessed for the period beginning 60 days after demand for payment was made.
If the person notified is the current owner of the property, the treasurer may add the
total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
otherwise payable on the property by including the amounts on the property tax statements
276.04, subdivision 3
. The amounts added under this paragraph to the ad
valorem taxes shall include interest accrued through December 31 of the year preceding
the taxes payable year for which the amounts are first added. These amounts, when added
to the property tax statement, become subject to all the laws for the enforcement of real or
personal property taxes for that year, and for any subsequent year.
If the person notified is not the current owner of the property, the treasurer may
collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
the powers granted in sections
without exclusion, to enforce payment
of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
tax obligations of the person who owned the property at the time the application related
to the improperly allowed homestead was filed. The treasurer may relieve a prior owner
of personal liability for the homestead benefits, penalty, interest, and costs, and instead
extend those amounts on the tax lists against the property as provided in this paragraph
to the extent that the current owner agrees in writing. On all demands, billings, property
tax statements, and related correspondence, the county must list and state separately the
amounts of homestead benefits, penalty, interest and costs being demanded, billed or
(i) Any amount of homestead benefits recovered by the county from the property
owner shall be distributed to the county, city or town, and school district where the
property is located in the same proportion that each taxing district's levy was to the total
of the three taxing districts' levy for the current year. Any amount recovered attributable
to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
deposited in the taconite property tax relief account. Any amount recovered that is
attributable to supplemental homestead credit is to be transmitted to the commissioner of
revenue for deposit in the general fund of the state treasury. The total amount of penalty
collected must be deposited in the county general fund.
(j) If a property owner has applied for more than one homestead and the county
assessors cannot determine which property should be classified as homestead, the county
assessors will refer the information to the commissioner. The commissioner shall make
the determination and notify the counties within 60 days.
(k) In addition to lists of homestead properties, the commissioner may ask the
counties to furnish lists of all properties and the record owners. The Social Security
numbers and federal identification numbers that are maintained by a county or city
assessor for property tax administration purposes, and that may appear on the lists retain
their classification as private or nonpublic data; but may be viewed, accessed, and used by
the county auditor or treasurer of the same county for the limited purpose of assisting the
commissioner in the preparation of microdata samples under section
(l) On or before April 30 each year beginning in 2007, each county must provide the
commissioner with the following data for each parcel of homestead property by electronic
means as defined in section
289A.02, subdivision 8
(i) the property identification number assigned to the parcel for purposes of taxes
payable in the current year;
(ii) the name and Social Security number of each occupant of homestead property
who is the property owner, property owner's spouse, qualifying relative of a property
owner, or spouse of a qualifying relative;
(iii) the classification of the property under section
for taxes payable in the
current year and in the prior year;
(iv) an indication of whether the property was classified as a homestead for taxes
payable in the current year because of occupancy by a relative of the owner or by a
spouse of a relative;
(v) the property taxes payable as defined in section
290A.03, subdivision 13
, for the
current year and the prior year;
(vi) the market value of improvements to the property first assessed for tax purposes
for taxes payable in the current year;
(vii) the assessor's estimated market value assigned to the property for taxes payable
in the current year and the prior year;
(viii) the taxable market value assigned to the property for taxes payable in the
current year and the prior year;
(ix) whether there are delinquent property taxes owing on the homestead;
(x) the unique taxing district in which the property is located; and
(xi) such other information as the commissioner decides is necessary.
The commissioner shall use the information provided on the lists as appropriate
under the law, including for the detection of improper claims by owners, or relatives
of owners, under chapter 290A.
31.28EFFECTIVE DATE.This section is effective for applications received after June
Sec. 8. Minnesota Statutes 2008, section 273.124, subdivision 21, is amended to read:
Subd. 21. Trust property; homestead.
Real or personal
property held by a trustee
under a trust is eligible for classification as homestead property if
: the property satisfies
31.33the requirements of paragraph (a), (b), (c), or (d).
31.34 (1) (a)
The grantor or surviving spouse of the grantor of the trust occupies and
uses the property as a homestead
32.1 (2) (b)
A relative or surviving relative of the grantor who meets the requirements
of subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1,
paragraph (d), in the case of agricultural property, occupies and uses the property as
32.5 (3) (c)
A family farm corporation, joint farm venture, limited liability company, or
partnership operating a family farm in which the grantor or the grantor's surviving spouse
is a shareholder, member, or partner rents the property
and, either (1)
member, or partner of the corporation, joint farm venture, limited liability company, or
partnership occupies and uses the property as a homestead
is actively farming, (2) the
at least 40 acres, including undivided government lots and correctional 40's, and
32.11a shareholder, member, or partner of the tenant-entity is actively farming
the property on
behalf of the corporation, joint farm venture, limited liability company, or partnership
32.13 (4) (d)
A person who has received homestead classification for property taxes
payable in 2000 on the basis of an unqualified legal right under the terms of the trust
agreement to occupy the property as that person's homestead and who continues to use the
property as a homestead;
a person who received the homestead classification for taxes
payable in 2005 under
clause (3) paragraph (c)
who does not qualify under
for taxes payable in 2006 or thereafter but who continues to qualify under
clause (3) paragraph (c)
as it existed for taxes payable in 2005.
For purposes of this subdivision, "grantor" is defined as the person creating or
establishing a testamentary, inter Vivos, revocable or irrevocable trust by written
instrument or through the exercise of a power of appointment.
32.23EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 9. Minnesota Statutes 2008, section 273.13, subdivision 23, is amended to read:
Subd. 23. Class 2.
(a) An agricultural homestead consists of class 2a agricultural
land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
the class 2a land under the same ownership. The market value of the house and garage
and immediately surrounding one acre of land has the same class rates as class 1a or 1b
property under subdivision 22. The value of the remaining land including improvements
up to the first tier valuation limit of agricultural homestead property has a net class rate
of 0.5 percent of market value. The remaining property over the first tier has a class rate
of one percent of market value. For purposes of this subdivision, the "first tier valuation
limit of agricultural homestead property" and "first tier" means the limit certified under
, subdivision 23.
(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
are agricultural land and buildings. Class 2a property has a net class rate of one percent of
market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
property may contain property that would otherwise be classified as 2b, including but not
limited to sloughs, wooded wind shelters, acreage abutting ditches, and other similar land
impractical for the assessor to value separately from the rest of the property.
An assessor may classify the part of a parcel described in this subdivision that is used
for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
(c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
that are unplatted real estate, rural in character and not used for agricultural purposes,
including land used for growing trees for timber, lumber, and wood and wood products,
that is not improved with a structure. The presence of a minor, ancillary nonresidential
structure as defined by the commissioner of revenue does not disqualify the property from
classification under this paragraph. Any parcel of 20 acres or more improved with a
structure that is not a minor, ancillary nonresidential structure must be split-classified, and
ten acres must be assigned to the split parcel containing the structure. Class 2b property
has a net class rate of one percent of market value unless it is part of an agricultural
homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
acres statewide per taxpayer that is being managed under a forest management plan that
meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
resource management incentive program. It has a class rate of .65 percent, provided
that the owner of the property must apply to the assessor
to receive the reduced class in
33.24order for the property to initially qualify for the reduced
rate and provide the information
required by the assessor to verify that the property qualifies for the reduced rate. If the
33.26assessor receives the application and information before May 1 in an assessment year,
33.27the property qualifies beginning with that assessment year. If the assessor receives the
33.28application and information after April 30 in an assessment year, the property qualifies
33.29beginning with the next assessment year.
The commissioner of natural resources must
concur that the land is qualified. The commissioner of natural resources shall annually
provide county assessors verification information on a timely basis. The presence of a
33.32minor, ancillary nonresidential structure as defined by the commissioner of revenue does
33.33not disqualify the property from classification under this paragraph.
(e) Agricultural land as used in this section means contiguous acreage of ten
acres or more, used during the preceding year for agricultural purposes. "Agricultural
purposes" as used in this section means the raising, cultivation, drying, or storage of
agricultural products for sale, or the storage of machinery or equipment used in support
of agricultural production by the same farm entity. For a property to be classified as
agricultural based only on the drying or storage of agricultural products, the products
being dried or stored must have been produced by the same farm entity as the entity
operating the drying or storage facility. "Agricultural purposes" also includes enrollment
in the Reinvest in Minnesota program under sections
or the federal
Conservation Reserve Program as contained in Public Law 99-198 or a similar state
or federal conservation program if the property was classified as agricultural (i) under
this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment.
Agricultural classification shall not be based upon the market value of any residential
structures on the parcel or contiguous parcels under the same ownership.
(f) Real estate of less than ten acres, which is exclusively or intensively used for
raising or cultivating agricultural products, shall be considered as agricultural land. To
qualify under this paragraph, property that includes a residential structure must be used
intensively for one of the following purposes:
(i) for drying or storage of grain or storage of machinery or equipment used to
support agricultural activities on other parcels of property operated by the same farming
(ii) as a nursery, provided that only those acres used to produce nursery stock are
considered agricultural land;
(iii) for livestock or poultry confinement, provided that land that is used only for
pasturing and grazing does not qualify; or
(iv) for market farming; for purposes of this paragraph, "market farming" means the
cultivation of one or more fruits or vegetables or production of animal or other agricultural
products for sale to local markets by the farmer or an organization with which the farmer
(g) Land shall be classified as agricultural even if all or a portion of the agricultural
use of that property is the leasing to, or use by another person for agricultural purposes.
Classification under this subdivision is not determinative for qualifying under
(h) The property classification under this section supersedes, for property tax
purposes only, any locally administered agricultural policies or land use restrictions that
define minimum or maximum farm acreage.
(i) The term "agricultural products" as used in this subdivision includes production
for sale of:
(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
bees, and apiary products by the owner;
(2) fish bred for sale and consumption if the fish breeding occurs on land zoned
for agricultural use;
(3) the commercial boarding of horses if the boarding is done in conjunction with
raising or cultivating agricultural products as defined in clause (1);
(4) property which is owned and operated by nonprofit organizations used for
equestrian activities, excluding racing;
(5) game birds and waterfowl bred and raised for use on a shooting preserve licensed
(6) insects primarily bred to be used as food for animals;
(7) trees, grown for sale as a crop, including short rotation woody crops, and not
sold for timber, lumber, wood, or wood products; and
(8) maple syrup taken from trees grown by a person licensed by the Minnesota
Department of Agriculture under chapter 28A as a food processor.
(j) If a parcel used for agricultural purposes is also used for commercial or industrial
purposes, including but not limited to:
(1) wholesale and retail sales;
(2) processing of raw agricultural products or other goods;
(3) warehousing or storage of processed goods; and
(4) office facilities for the support of the activities enumerated in clauses (1), (2),
the assessor shall classify the part of the parcel used for agricultural purposes as class
1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
use. The grading, sorting, and packaging of raw agricultural products for first sale is
considered an agricultural purpose. A greenhouse or other building where horticultural
or nursery products are grown that is also used for the conduct of retail sales must be
classified as agricultural if it is primarily used for the growing of horticultural or nursery
products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
those products. Use of a greenhouse or building only for the display of already grown
horticultural or nursery products does not qualify as an agricultural purpose.
The assessor shall determine and list separately on the records the market value
of the homestead dwelling and the one acre of land on which that dwelling is located. If
any farm buildings or structures are located on this homesteaded acre of land, their market
value shall not be included in this separate determination.
Class 2d airport landing area consists of a landing area or public access area
of a privately owned public use airport. It has a class rate of one percent of market value.
To qualify for classification under this paragraph, a privately owned public use airport
must be licensed as a public airport under section
. For purposes of this paragraph,
"landing area" means that part of a privately owned public use airport properly cleared,
regularly maintained, and made available to the public for use by aircraft and includes
runways, taxiways, aprons, and sites upon which are situated landing or navigational aids.
A landing area also includes land underlying both the primary surface and the approach
surfaces that comply with all of the following:
(i) the land is properly cleared and regularly maintained for the primary purposes of
the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
(ii) the land is part of the airport property; and
(iii) the land is not used for commercial or residential purposes.
The land contained in a landing area under this paragraph must be described and certified
by the commissioner of transportation. The certification is effective until it is modified,
or until the airport or landing area no longer meets the requirements of this paragraph.
For purposes of this paragraph, "public access area" means property used as an aircraft
parking ramp, apron, or storage hangar, or an arrival and departure building in connection
with the airport.
Class 2e consists of land with a commercial aggregate deposit that is not
actively being mined and is not otherwise classified as class 2a or 2b. It has a class rate of
one percent of market value. To qualify for classification under this paragraph, the property
must be at least ten contiguous acres in size and the owner of the property must record with
the county recorder of the county in which the property is located an affidavit containing:
(1) a legal description of the property;
(2) a disclosure that the property contains a commercial aggregate deposit that is not
actively being mined but is present on the entire parcel enrolled;
(3) documentation that the conditional use under the county or local zoning
ordinance of this property is for mining; and
(4) documentation that a permit has been issued by the local unit of government
or the mining activity is allowed under local ordinance. The disclosure must include a
statement from a registered professional geologist, engineer, or soil scientist delineating
the deposit and certifying that it is a commercial aggregate deposit.
For purposes of this section and section
, "commercial aggregate deposit"
means a deposit that will yield crushed stone or sand and gravel that is suitable for use
as a construction aggregate; and "actively mined" means the removal of top soil and
overburden in preparation for excavation or excavation of a commercial deposit.
When any portion of the property under this subdivision or subdivision 22
begins to be actively mined, the owner must file a supplemental affidavit within 60 days
from the day any aggregate is removed stating the number of acres of the property that is
actively being mined. The acres actively being mined must be (1) valued and classified
under subdivision 24 in the next subsequent assessment year, and (2) removed from the
aggregate resource preservation property tax program under section
, if the
land was enrolled in that program. Copies of the original affidavit and all supplemental
affidavits must be filed with the county assessor, the local zoning administrator, and the
Department of Natural Resources, Division of Land and Minerals. A supplemental
affidavit must be filed each time a subsequent portion of the property is actively mined,
provided that the minimum acreage change is five acres, even if the actual mining activity
constitutes less than five acres.
37.15(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
37.16not rules, are exempt from the rulemaking provisions of chapter 14, and the provisions
37.17in section 14.386 concerning exempt rules do not apply.
37.18EFFECTIVE DATE.The section is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2008, section 273.13, subdivision 25, is amended to read:
Subd. 25. Class 4.
(a) Class 4a is residential real estate containing four or more
units and used or held for use by the owner or by the tenants or lessees of the owner
as a residence for rental periods of 30 days or more, excluding property qualifying for
class 4d. Class 4a also includes hospitals licensed under sections
than hospitals exempt under section
, and contiguous property used for hospital
purposes, without regard to whether the property has been platted or subdivided. The
market value of class 4a property has a class rate of 1.25 percent.
(b) Class 4b includes:
(1) residential real estate containing less than four units that does not qualify as class
4bb, other than seasonal residential recreational property;
(2) manufactured homes not classified under any other provision;
(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
farm classified under subdivision 23, paragraph (b) containing two or three units; and
(4) unimproved property that is classified residential as determined under subdivision
The market value of class 4b property has a class rate of 1.25 percent.
(c) Class 4bb includes:
(1) nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property; and
(2) a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b).
Class 4bb property has the same class rates as class 1a property under subdivision 22.
Property that has been classified as seasonal residential recreational property at
any time during which it has been owned by the current owner or spouse of the current
owner does not qualify for class 4bb.
(d) Class 4c property includes:
(1) except as provided in subdivision 22, paragraph (c),
or subdivision 23, paragraph
38.12 (b), clause (1),
real and personal property devoted to temporary and seasonal residential
occupancy for recreation purposes, including real and personal property devoted to
temporary and seasonal residential occupancy for recreation purposes and not devoted to
commercial purposes for more than 250 days in the year preceding the year of assessment.
For purposes of this clause, property is devoted to a commercial purpose on a specific
day if any portion of the property is used for residential occupancy, and a fee is charged
for residential occupancy. Class 4c property under this clause
must contain three or
more rental units. A "rental unit" is defined as a cabin, condominium, townhouse,
sleeping room, or individual camping site equipped with water and electrical hookups
for recreational vehicles. Class 4c property under this clause
must provide recreational
activities such as renting ice fishing houses, boats and motors, snowmobiles, downhill or
cross-country ski equipment; provide marina services, launch services, or guide services;
or sell bait and fishing tackle. A camping pad offered for rent by a property that otherwise
qualifies for class 4c under this clause
is also class 4c under this clause
regardless of the
term of the rental agreement, as long as the use of the camping pad does not exceed 250
days. In order for a property to be classified as class 4c, seasonal residential recreational
for commercial purposes under this clause, at least 40 percent of the annual gross lodging
receipts related to the property must be from business conducted during 90 consecutive
days and either (i) at least 60 percent of all paid bookings by lodging guests during the
year must be for periods of at least two consecutive nights; or (ii) at least 20 percent
of the annual gross receipts must be from charges for rental of fish houses, boats and
motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina
services, launch services, and guide services, or the sale of bait and fishing tackle. For
purposes of this determination, a paid booking of five or more nights shall be counted as
two bookings. Class 4c property classified under this clause
also includes commercial
use real property used exclusively for recreational purposes in conjunction with other
class 4c property classified under this clause and
devoted to temporary and seasonal
residential occupancy for recreational purposes, up to a total of two acres, provided the
property is not devoted to commercial recreational use for more than 250 days in the year
preceding the year of assessment and is located within two miles of the class 4c property
with which it is used. Owners of real and personal property devoted to temporary and
seasonal residential occupancy for recreation purposes and all or a portion of which was
devoted to commercial purposes for not more than 250 days in the year preceding the
year of assessment desiring classification as class 4c, must submit a declaration to the
assessor designating the cabins or units occupied for 250 days or less in the year preceding
the year of assessment by January 15 of the assessment year. Those cabins or units and
a proportionate share of the land on which they are located must be designated class
4c under this clause
as otherwise provided. The remainder of the cabins or units and a
proportionate share of the land on which they are located will be designated as class 3a.
The owner of property desiring designation as class 4c property under this clause
provide guest registers or other records demonstrating that the units for which class 4c
designation is sought were not occupied for more than 250 days in the year preceding the
assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility
operated on a commercial basis not directly related to temporary and seasonal residential
occupancy for recreation purposes does not qualify for class 4c;
(2) qualified property used as a golf course if:
(i) it is open to the public on a daily fee basis. It may charge membership fees or
dues, but a membership fee may not be required in order to use the property for golfing,
and its green fees for golfing must be comparable to green fees typically charged by
municipal courses; and
(ii) it meets the requirements of section
273.112, subdivision 3
, paragraph (d).
A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
with the golf course is classified as class 3a property;
(3) real property up to a maximum of three acres of land owned and used by a
nonprofit community service oriented organization and
not used for residential
purposes on either a temporary or permanent basis,
qualifies for class 4c
it meets either of the following
(i) the property is not used for a revenue-producing activity for more than six days
in the calendar year preceding the year of assessment; or
(ii) the organization makes annual charitable contributions and donations at least
equal to the property's previous year's property taxes and the property is allowed to be
used for public and community meetings or events for no charge, as appropriate to the
size of the facility.
For purposes of this clause,
(A) "charitable contributions and donations" has the same meaning as lawful
gambling purposes under section
349.12, subdivision 25
, excluding those purposes
relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
(B) "property taxes" excludes the state general tax;
(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c)(3), (8),
(10), or (19) of the Internal
Revenue Code; and
(D) "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.
Any portion of the property not
qualifying under either
which is used for
40.22 revenue-producing activities for more than six days in the calendar year preceding the
40.23 year of assessment shall be assessed as or (ii) is
class 3a. The use of the property for social
events open exclusively to members and their guests for periods of less than 24 hours,
when an admission is not charged nor any revenues are received by the organization shall
not be considered a revenue-producing activity.
The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the
requirement under item (ii) must file an application by May 1 with the assessor for
eligibility for the current year's assessment. The commissioner shall prescribe a uniform
application form and instructions;
(4) postsecondary student housing of not more than one acre of land that is owned by
a nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;
(5) manufactured home parks as defined in section
327.14, subdivision 3
(6) real property that is actively and exclusively devoted to indoor fitness, health,
social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
and is located within the metropolitan area as defined in section
473.121, subdivision 2
(7) a leased or privately owned noncommercial aircraft storage hangar not exempt
272.01, subdivision 2
, and the land on which it is located, provided that:
(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and
(ii) the land lease, or any ordinance or signed agreement restricting the use of the
leased premise, prohibits commercial activity performed at the hangar.
If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
be filed by the new owner with the assessor of the county where the property is located
within 60 days of the sale;
(8) a privately owned noncommercial aircraft storage hangar not exempt under
272.01, subdivision 2
, and the land on which it is located, provided that:
(i) the land abuts a public airport; and
(ii) the owner of the aircraft storage hangar provides the assessor with a signed
agreement restricting the use of the premises, prohibiting commercial use or activity
performed at the hangar; and
(9) residential real estate, a portion of which is used by the owner for homestead
purposes, and that is also a place of lodging, if all of the following criteria are met:
(i) rooms are provided for rent to transient guests that generally stay for periods
of 14 or fewer days;
(ii) meals are provided to persons who rent rooms, the cost of which is incorporated
in the basic room rate;
(iii) meals are not provided to the general public except for special events on fewer
than seven days in the calendar year preceding the year of the assessment; and
(iv) the owner is the operator of the property.
The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22; and
(10) real property up to a maximum of three acres and operated as a restaurant
as defined under section
157.15, subdivision 12
, provided it: (A) is located on a lake
as defined under section
103G.005, subdivision 15
, paragraph (a), clause (3); and (B)
is either devoted to commercial purposes for not more than 250 consecutive days, or
receives at least 60 percent of its annual gross receipts from business conducted during
four consecutive months. Gross receipts from the sale of alcoholic beverages must be
included in determining the property's qualification under subitem (B). The property's
primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
sales located on the premises must be excluded. Owners of real property desiring 4c
classification under this clause must submit an annual declaration to the assessor by
February 1 of the current assessment year, based on the property's relevant information for
the preceding assessment year.
Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
parcel of seasonal residential recreational property not used for commercial purposes has
the same class rates as class 4bb property, (ii) manufactured home parks assessed under
clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal
residential recreational property has a class rate of one percent for the first $500,000 of
market value, and 1.25 percent for the remaining market value, (iv) the market value of
property described in clause (4) has a class rate of one percent, (v) the market value of
property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi)
that portion of the market value of property in clause (9) qualifying for class 4c property
has a class rate of 1.25 percent.
(e) Class 4d property is qualifying low-income rental housing certified to the assessor
by the Housing Finance Agency under section
273.128, subdivision 3
. If only a portion
of the units in the building qualify as low-income rental housing units as certified under
273.128, subdivision 3
, only the proportion of qualifying units to the total number
of units in the building qualify for class 4d. The remaining portion of the building shall be
classified by the assessor based upon its use. Class 4d also includes the same proportion of
land as the qualifying low-income rental housing units are to the total units in the building.
For all properties qualifying as class 4d, the market value determined by the assessor must
be based on the normal approach to value using normal unrestricted rents.
Class 4d property has a class rate of 0.75 percent.
42.29EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 11. Minnesota Statutes 2008, section 273.13, subdivision 33, is amended to read:
Subd. 33. Classification of unimproved property.
(a) All real property that is not
improved with a structure must be classified according to its current use.
(b) Except as provided in subdivision 23, paragraph (c) or (d)
, real property that is
not improved with a structure and for which there is no identifiable current use must be
classified according to its highest and best use permitted under the local zoning ordinance.
If the ordinance permits more than one use, the land must be classified according to the
highest and best use permitted under the ordinance. If no such ordinance exists, the
assessor shall consider the most likely potential use of the unimproved land based upon
the use made of surrounding land or land in proximity to the unimproved land.
43.5EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 12. Minnesota Statutes 2008, section 273.33, subdivision 2, is amended to read:
Subd. 2. Listing and assessment by commissioner.
The personal property,
consisting of the pipeline system of mains, pipes, and equipment attached thereto, of
pipeline companies and others engaged in the operations or business of transporting natural
gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and
assessed by the commissioner of revenue and the values provided to the city or county
assessor by order. This subdivision shall not apply to the assessment of the products
transported through the pipelines nor to the lines of local commercial gas companies
engaged primarily in the business of distributing gas to consumers at retail nor to pipelines
used by the owner thereof to supply natural gas or other petroleum products exclusively
for such owner's own consumption and not for resale to others. If more than 85 percent
of the natural gas or other petroleum products actually transported over the pipeline is
used for the owner's own consumption and not for resale to others, then this subdivision
shall not apply; provided, however, that in that event, the pipeline shall be assessed in
proportion to the percentage of gas actually transported over such pipeline that is not used
for the owner's own consumption. On or before
June 30 August 1
, the commissioner shall
certify to the auditor of each county, the amount of such personal property assessment
against each company in each district in which such property is located.
43.24EFFECTIVE DATE.This section is effective for assessment year 2009 and
Sec. 13. Minnesota Statutes 2008, section 273.37, subdivision 2, is amended to read:
Subd. 2. Listing and assessment by commissioner.
Transmission lines of less
than 69 kv, transmission lines of 69 kv and above located in an unorganized township,
and distribution lines, and equipment attached thereto, having a fixed situs outside the
corporate limits of cities except distribution lines taxed as provided in sections
, shall be listed with and assessed by the commissioner of revenue in the county
where situated and the values provided to the city or county assessor by order. The
commissioner shall assess such property at the percentage of market value fixed by law;
and, on or before
June 30 August 1
, shall certify to the auditor of each county in which
such property is located the amount of the assessment made against each company and
person owning such property.
44.4EFFECTIVE DATE.This section is effective for assessment year 2009 and
Sec. 14. Minnesota Statutes 2008, section 274.13, subdivision 2, is amended to read:
Subd. 2. Special board; delegated duties.
The board of equalization for any
county may appoint a special board of equalization and may delegate to it the powers and
duties in subdivision 1. The special board of equalization shall serve at the direction and
discretion of the appointing county board, subject to the restrictions imposed by law on
the appointing board. The appointing board may determine the number of members to be
appointed to the special board, the compensation and expenses to be paid, and the term of
office of each member. At least one member of the special board of equalization must be
an appraiser, realtor, or other person familiar with property valuations in the county. The
county auditor is a nonvoting member and serves as the recorder for the special board.
44.16The special board is subject to the quorum requirements for county boards and the training
44.17requirements for county boards in section 274.135, subdivision 2.
44.18EFFECTIVE DATE.The section is effective the day following final enactment.
Sec. 15. Minnesota Statutes 2008, section 274.135, subdivision 3, is amended to read:
Subd. 3. Proof of compliance; transfer of duties.
(a) Any county that
conducts county boards of appeal and equalization meetings must provide proof to the
commissioner by December 1, 2009, and each year thereafter, that it is in compliance
with the requirements of subdivision 2. Beginning in 2009, this notice must also verify
that there was a quorum of voting members at each meeting of the board of appeal and
equalization in the current year. A county that does not comply with these requirements
is deemed to have transferred its board of appeal and equalization powers to the special
board of equalization appointed pursuant to section
274.13, subdivision 2
with the following year's assessment and continuing unless the powers are reinstated
under paragraph (c). A county that does not comply with the requirements of subdivision
2 and has not appointed a special board of equalization shall appoint a special board of
equalization before the following year's assessment.
(b) The county shall notify the taxpayers when the board of appeal and equalization
for a county has been transferred to the special board of equalization under this subdivision
and, prior to the meeting time of the special board of equalization, the county shall make
available to those taxpayers a procedure for a review of the assessments, including, but
not limited to, open book meetings. This alternate review process must take place in
April and May.
(c) A county board whose powers are transferred to the special board of equalization
under this subdivision may be reinstated by resolution of the county board and upon proof
of compliance with the requirements of subdivision 2. The resolution and proofs must be
provided to the commissioner by December 1 in order to be effective for the following
45.10(d) If a person who was entitled to appeal to the county board of appeal and
45.11equalization or to the county special board of equalization is not able to do so in a
45.12particular year because the county board or special board did not meet the quorum and
45.13training requirements in this section and section 274.13, or because the special board
45.14was not appointed, that person may instead appeal to the commissioner of revenue,
45.15provided that the appeal is received by the commissioner prior to August 1. The appeal
45.16is not subject to either chapter 14 or section 270C.92. The commissioner must issue
45.17an appropriate order to the county assessor in response to each timely appeal, either
45.18upholding or changing the valuation or classification of the property. Prior to October 1 of
45.19each year, the commissioner must charge and bill the county where the property is located
45.20$500 for each tax parcel covered by an order issued under this paragraph in that year.
45.21Amounts received by the commissioner under this paragraph must be deposited in the
45.22state's general fund. If payment of a billed amount is not received by the commissioner
45.23before December 1 of the year when billed, the commissioner must deduct that unpaid
45.24amount from any state aid the commissioner would otherwise pay to the county under
45.25chapter 477A in the next year. Late payments may either be returned to the county
45.26uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid
45.27paid to the county under chapter 477A must be adjusted within 12 months to eliminate any
45.28reduction that occurred because the payment was late. Amounts needed to make these
45.29adjustments are included in the appropriation under section 477A.03, subdivision 2.
45.30EFFECTIVE DATE.This section is effective for taxes payable in 2010 and
Sec. 16. Minnesota Statutes 2008, section 274.14, is amended to read:
45.33274.14 LENGTH OF SESSION; RECORD.
on any after the second Friday in June on at least one
46.2meeting day and may meet for up to
ten consecutive meeting days
in June, after the
46.3 second Friday in June
. The actual meeting dates must be contained on the valuation
notices mailed to each property owner in the county as provided in section
this purpose, "meeting days" is defined as any day of the week excluding Sunday. At
the board's discretion, "meeting days" may include Saturday. No action taken by the
county board of review after June 30 is valid, except for corrections permitted in sections
. The county auditor shall keep an accurate record of the proceedings
and orders of the board. The record must be published like other proceedings of county
commissioners. A copy of the published record must be sent to the commissioner of
revenue, with the abstract of assessment required by section
For counties that conduct either regular board of review meetings or open book
meetings, at least one of the meeting days must include a meeting that does not end
before 7:00 p.m. For counties that require taxpayer appointments for the board of review,
appointments must include some available times that extend until at least 7:00 p.m. The
county may have a Saturday meeting in lieu of, or in addition to, the extended meeting
times under this paragraph.
46.18EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 17. Minnesota Statutes 2008, section 274.175, is amended to read:
46.20274.175 VALUES FINALIZED.
The assessments recorded by the county assessor and the county auditor under
273.124, subdivision 9
; or other law for real and personal
property are final on July 1 of the assessment year, except for property added to the
assessment rolls under section
272.02, subdivision 38
, and assessments certified to the
46.25auditor under sections 273.33, subdivision 2, and 273.37, subdivision 2,
because of tax forfeiture pursuant to chapter 281. No changes in value may be made
after July 1 of the assessment year, except for corrections permitted in sections
274.01, or assessments certified to the auditor under sections 273.33, subdivision 2,
46.29and 273.37, subdivision 2
46.30EFFECTIVE DATE.This section is effective for assessment year 2009 and
Sec. 18. Minnesota Statutes 2008, section 290C.06, is amended to read:
47.2290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE;
TIMBERLAND MANAGED FOREST LAND.
The commissioner shall annually calculate a statewide average estimated market
value per acre for class
2b timberland 2c managed forest land
, paragraph (b)
47.7EFFECTIVE DATE.This section is effective for calculations made in 2010 and
Sec. 19. Minnesota Statutes 2008, section 290C.07, is amended to read:
47.10290C.07 CALCULATION OF INCENTIVE PAYMENT.
An approved claimant under the sustainable forest incentive program is eligible to
receive an annual payment. The payment shall equal the greater of:
(1) the difference between the property tax that would be paid on the land using the
previous year's statewide average total township tax rate and
for class 2b
47.15 timberland under section
273.13, subdivision 23 , paragraph (b) of one percent
, if the land
were valued at (i) the average statewide
timberland managed forest land
market value per
acre calculated under section
, and (ii) the average statewide
current use value per acre calculated under section
290C.02, subdivision 5
(2) two-thirds of the property tax amount determined by using the previous
year's statewide average total township tax rate, the estimated market value per acre as
calculated in section
for 2b timberland under section
, paragraph (b) of one percent
, provided that the payment shall be no less
than $7 per acre for each acre enrolled in the sustainable forest incentive program.
47.24EFFECTIVE DATE.This section is effective for calculations made in 2010 and
Sec. 20. Minnesota Statutes 2008, section 477A.011, subdivision 34, is amended to
Subd. 34. City revenue need.
(a) For a city with a population equal to or greater
than 2,500, "city revenue need" is the greater of 285 or the
sum of (1) 5.0734098 times the
pre-1940 housing percentage; plus (2) 19.141678 times the population decline percentage;
plus (3) 2504.06334 times the road accidents factor; plus (4)
; minus (5) the
metropolitan area factor; minus (6) 49.10638 times the household size.
(b) For a city with a population less than 2,500, "city revenue need" is the sum of
times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial
industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4)
times the transformed population; minus (5)
(c) For a city with a population of 2,500 or more and a population in one of the most
recently available five years that was less than 2,500, "city revenue need" is the sum of (1)
its city revenue need calculated under paragraph (a) multiplied by its transition factor;
plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied
by the difference between one and its transition factor. For purposes of this paragraph, a
city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's
population estimate has been 2,500 or more. This provision only applies for aids payable
in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It
applies to any city for aids payable in 2009 and thereafter.
The city revenue need under
48.14 this paragraph may not be less than 285.
(d) The city revenue need cannot be less than zero.
(e) For calendar year 2005 and subsequent years, the city revenue need for a city,
as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual implicit
price deflator for government consumption expenditures and gross investment for state
and local governments as prepared by the United States Department of Commerce, for
the most recently available year to the 2003 implicit price deflator for state and local
48.22EFFECTIVE DATE.This section is effective for aids payable in 2009 and
Sec. 21. Minnesota Statutes 2008, section 477A.011, subdivision 42, is amended to
Subd. 42. City jobs base.
(a) "City jobs base" for a city with a population of 5,000 or
more is equal to the product of (1) $25.20, (2) the number of jobs per capita in the city, and
(3) its population. For cities with a population less than 5,000, the city jobs base is equal
to zero. For a city receiving aid under
, its city jobs base
is reduced by the lesser of 36 percent of the amount of aid received under that paragraph
or $1,000,000. No city's city jobs base may exceed $4,725,000 under this paragraph.
(b) For calendar year 2010 and subsequent years, the city jobs base for a city, as
determined in paragraph (a), is multiplied by the ratio of the appropriation under section
48.34477A.03, subdivision 2a
, for the year in which the aid is paid to the appropriation under
that section for aids payable in 2009.
(c) For purposes of this subdivision, "jobs per capita in the city" means (1) the
average annual number of employees in the city based on the data from the Quarterly
Census of Employment and Wages, as reported by the Department of Employment and
Economic Development, for the most recent calendar year available as of May 1, 2008,
divided by (2) the city's population for the same calendar year as the employment data.
The commissioner of the Department of Employment and Economic Development shall
certify to the city the average annual number of employees for each city by June 1, 2008.
A city may challenge an estimate under this paragraph by filing its specific objection,
including the names of employers that it feels may have misreported data, in writing with
the commissioner by June 20, 2008. The commissioner shall make every reasonable effort
to address the specific objection and adjust the data as necessary. The commissioner shall
certify the estimates of the annual employment to the commissioner of revenue by July 15,
2008, including any estimates still under objection.
49.14EFFECTIVE DATE.This section is effective for aids payable in 2009 and
Sec. 22. Minnesota Statutes 2008, section 477A.013, subdivision 8, is amended to read:
Subd. 8. City formula aid.
(a) In calendar year 2009, the formula aid for a city
is equal to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need
increase percentage multiplied by its unmet need.
(b) In calendar year 2010 and subsequent years, the formula aid for a city is equal
to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase
percentage multiplied by the average of its unmet need for the most recently available
No city may have a formula aid amount less than zero. The need increase percentage
must be the same for all cities.
The applicable need increase percentage must be calculated by the Department of
Revenue so that the total of the aid under subdivision 9 equals the total amount available
for aid under section
. For aids payable in 2009 only, all data used in calculating
aid to cities under sections
will be based on the data available for
calculating aid to cities for aids payable in 2008. For aids payable in 2010 and thereafter,
data used in calculating aids to cities under sections
shall be the
most recently available data as of January 1 in the year in which the aid is calculated
49.33except as provided in section 477A.011, subdivisions 3 and 35
50.1EFFECTIVE DATE.This section is effective for assessment year 2009 and
Sec. 23. REPEALER.
50.4Minnesota Rules, parts 8115.0200; 8115.0300; 8115.0400; 8115.0500; 8115.0600;
50.58115.1000; 8115.1100; 8115.1200; 8115.1300; 8115.1400; 8115.1500; 8115.1600;
50.68115.1700; 8115.1800; 8115.1900; 8115.2000; 8115.2100; 8115.2200; 8115.2300;
50.78115.2400; 8115.2500; 8115.2600; 8115.2700; 8115.2800; 8115.2900; 8115.3000;
50.88115.4000; 8115.4100; 8115.4200; 8115.4300; 8115.4400; 8115.4500; 8115.4600;
50.98115.4700; 8115.4800; 8115.4900; 8115.5000; 8115.5100; 8115.5200; 8115.5300;
50.108115.5400; 8115.5500; 8115.5600; 8115.5700; 8115.5800; 8115.5900; 8115.6000;
50.118115.6100; 8115.6200; 8115.6300; 8115.6400; and 8115.9900; are repealed.
50.12EFFECTIVE DATE.This section is effective the day following final enactment.
50.14CONDITIONAL USE DEEDS
Section 1. Minnesota Statutes 2008, section 282.01, subdivision 1, is amended to read:
Subdivision 1. Classification as conservation or nonconservation.
It is the general
50.17 policy of this state to encourage the best use of tax-forfeited lands, recognizing that some
50.18 lands in public ownership should be retained and managed for public benefits while other
50.19 lands should be returned to private ownership (a) When acting on behalf of the state under
50.20laws allowing the county board to classify and manage tax-forfeited lands held by the
50.21state in trust for the local units as provided in section 281.25, the county board has the
50.22discretion to decide that some lands in public ownership should be retained and managed
50.23for public benefits while other lands should be returned to private ownership
of land becoming the property of the state in trust under law declaring the forfeiture
of lands to the state for taxes must be classified by the county board of the county in
which the parcels lie as conservation or nonconservation. In making the classification the
board shall consider the present use of adjacent lands, the productivity of the soil, the
character of forest or other growth, accessibility of lands to established roads, schools,
and other public services, their peculiar suitability or desirability for particular uses,
the suitability of the forest resources on the land for multiple use
management. The classification, furthermore, must: (1)
encourage and foster a mode of
land utilization that will facilitate the economical and adequate provision of transportation,
roads, water supply, drainage, sanitation, education, and recreation; (2)
of governmental expenditures; (3)
conserve and develop the natural resources;
51.2protect and sustain important environmental and ecological systems; and (5)
develop agriculture and other industries in the districts and places best suited to them.
In making the classification the county board may use information made available
51.5 by any office or department of the federal, state, or local governments, or by any other
51.6 person or agency possessing pertinent information at the time the classification is made.
51.7 The lands may be reclassified from time to time as the county board considers necessary
51.8 or desirable, except for conservation lands held by the state free from any trust in favor of
51.9 any taxing district.
51.10 If the lands are located within the boundaries of an organized town, with taxable
51.11 valuation in excess of $20,000, or incorporated municipality, the classification or
51.12 reclassification and sale must first be approved by the town board of the town or the
51.13 governing body of the municipality in which the lands are located. The town board of
51.14 the town or the governing body of the municipality is considered to have approved
51.15 the classification or reclassification and sale if the county board is not notified of the
51.16 disapproval of the classification or reclassification and sale within 60 days of the date the
51.17 request for approval was transmitted to the town board of the town or governing body
51.18 of the municipality. If the town board or governing body desires to acquire any parcel
51.19 lying in the town or municipality by procedures authorized in this section, it must file a
51.20 written application with the county board to withhold the parcel from public sale. The
51.21 application must be filed within 60 days of the request for classification or reclassification
51.22 and sale. The county board shall then withhold the parcel from public sale for six months.
51.23 A municipality or governmental subdivision shall pay maintenance costs incurred by
51.24 the county during the six-month period while the property is withheld from public sale,
51.25 provided the property is not offered for public sale after the six-month period. A clerical
51.26 error made by county officials does not serve to eliminate the request of the town board
51.27 or governing body if the board or governing body has forwarded the application to the
51.28 county auditor. If the town board or governing body of the municipality fails to submit an
51.29 application and a resolution of the board or governing body to acquire the property within
51.30 the withholding period, the county may offer the property for sale upon the expiration of
51.31 the withholding period.
51.32(b) Whenever the county board deems it appropriate, the board may hold a meeting
51.33for the purpose of reclassifying tax-forfeited land that has not been sold or released from
51.34the trust. The criteria and procedures for reclassification are the same as those required for
51.35an initial classification.
52.1(c) Prior to meeting for the purpose of classifying or reclassifying tax-forfeited lands,
52.2the county board must give notice of its intent to meet for that purpose as provided in this
52.3paragraph. The notice must be given no more than 90 days and no less than 60 days before
52.4the date of the meeting; provided that if the meeting is rescheduled, notice of the new
52.5date, time, and location must be given at least 14 days before the date of the rescheduled
52.6meeting. The notice must be posted on a Web site. The notice must also be mailed or
52.7otherwise delivered to each person who has filed a request for notice of special meetings
52.8with the public body, regardless of whether the matter is considered at a regular or special
52.9meeting. The notice must be mailed or delivered at least 60 days before the date of the
52.10meeting. If the meeting is rescheduled, notice of the new date, time, and location must be
52.11mailed or delivered at least 14 days before the date of the rescheduled meeting. The public
52.12body shall publish the notice once, at least 30 days before the meeting, in a newspaper of
52.13general circulation within the area of the public body's authority. The board must also mail
52.14a notice by electronic means to each person who requests notice of meetings dealing with
52.15this subject and who agrees as provided in chapter 325L to accept notice that is mailed
52.16by electronic means. Receipt of actual notice under the conditions specified in section
52.1713D.04, subdivision 7, satisfies the notice requirements of this paragraph.
52.18The board may classify or reclassify tax-forfeited lands at any regular or special
52.19meeting, as those terms are defined in chapter 13D and may conduct only this business, or
52.20this business as well as other business or activities at the meeting.
52.21(d) At the meeting, the county board must allow any person or agency possessing
52.22pertinent information to make or submit comments and recommendations about the
52.23pending classification or reclassification. In addition, representatives of governmental
52.24entities in attendance must be allowed to describe plans, ideas, or projects that may
52.25involve use or acquisition of the property by that or another governmental entity. The
52.26county board must solicit and consider any relevant components of current municipal or
52.27metropolitan comprehensive land use plans that incorporate the area in which the land
52.28is located. After allowing testimony, the board may classify, reclassify, or delay taking
52.29action on any parcel or parcels. In order for a state agency or a governmental subdivision
52.30of the state to preserve its right to request a purchase or other acquisition of a forfeited
52.31parcel, it may, at any time following forfeiture, file a written request to withhold the parcel
52.32from sale or lease to others under the provisions of subdivision 1a.
52.33(e) When classifying, reclassifying, appraising, and selling lands under this chapter,
52.34the county board may designate the tracts as assessed and acquired, or may by resolution
52.35provide for the subdivision of the tracts into smaller units or for the grouping of several
52.36tracts into one tract when the subdivision or grouping is deemed advantageous for
53.1conservation or sale purposes. This paragraph does not authorize the county board to
53.2subdivide a parcel or tract of tax-forfeited land that, as assessed and acquired, is withheld
53.3from sale under section 282.018, subdivision 1.
53.4(f) A county board may by resolution elect to use the classification and
53.5reclassification procedures provided in paragraphs (g), (h), and (i), instead of the
53.6procedures provided in paragraphs (b), (c), and (d). Once an election is made under this
53.7paragraph, it is effective for a minimum of five years.
53.8(g) The classification or reclassification of tax-forfeited land that has not been sold or
53.9released from the trust may be made by the county board using information made available
53.10to it by any office or department of the federal, state, or local governments, or by any other
53.11person or agency possessing pertinent information at the time the classification is made.
53.12(h) If the lands are located within the boundaries of an organized town or
53.13incorporated municipality, a classification or reclassification and sale must first be
53.14approved by the town board of the town or the governing body of the municipality in
53.15which the lands are located. The town board of the town or the governing body of the
53.16municipality is considered to have approved the classification or reclassification and sale
53.17if the county board is not notified of the disapproval of the classification or reclassification
53.18and sale within 60 days of the date the request for approval was transmitted to the town
53.19board of the town or governing body of the municipality. If the town board or governing
53.20body disapproves of the classification or reclassification and sale, the county board must
53.21follow the procedures in paragraphs (c) and (d), with regard to the parcel, and must
53.22additionally cause to be published in a newspaper a notice of the date, time, location, and
53.23purpose of the required meeting.
53.24(i) If a town board or a governing body of a municipality desires to acquire any
53.25parcel lying in the town or municipality by procedures authorized in this section, it may
53.26file a written request under subdivision 1a, paragraph (a).
53.27EFFECTIVE DATE.This section is effective July 1, 2009.
Sec. 2. Minnesota Statutes 2008, section 282.01, subdivision 1a, is amended to read:
Subd. 1a. Conveyance
; generally to public entities. (a) Upon written request
53.30from a state agency or a governmental subdivision of the state, a parcel of unsold
53.31tax-forfeited land must be withheld from sale or lease to others for a maximum of six
53.32months. The request must be submitted to the county auditor. Upon receipt, the county
53.33auditor must withhold the parcel from sale or lease to any other party for six months, and
53.34must confirm the starting date of the six-month withholding period to the requesting
53.35agency or subdivision. If the request is from a governmental subdivision of the state, the
54.1governmental subdivision must pay the maintenance costs incurred by the county during
54.2the period the parcel is withheld. The county board may approve a sale or conveyance to
54.3the requesting party during the withholding period. A conveyance of the property to the
54.4requesting party terminates the withholding period.
54.5A governmental subdivision of the state must not make, and a county auditor must
54.6not act upon, a second request to withhold a parcel from sale or lease within 18 months
54.7of a previous request for that parcel. A county may reject a request made under this
54.8paragraph if the request is made more than 30 days after the county has given notice to the
54.9requesting state agency or governmental subdivision of the state that the county intends to
54.10sell or otherwise dispose of the property.
tax-forfeited lands may be sold by the county board, for
54.12their market value as determined
by the county board,
to an organized or incorporated
governmental subdivision of the state for any public purpose for which the subdivision is
authorized to acquire property
or. When the term "market value" is used in this section, it
54.15means an estimate of the full and actual market value of the parcel as determined by the
54.16county board, but in making this determination, the board and the persons employed by or
54.17under contract with the board in order to perform, conduct, or assist in the determination,
54.18are exempt from the licensure requirements of chapter 82B.
54.19(c) Nonconservation tax-forfeited lands
may be released from the trust in favor of the
taxing districts on application
of to the county board by
a state agency for an authorized
use at not less than their market
value as determined by the county board.
54.22(d) Nonconservation tax-forfeited lands may be sold by the county board to an
54.23organized or incorporated governmental subdivision of the state or state agency for less
54.24than their market value if:
54.25(1) the county board determines that a sale at a reduced price is in the public interest
54.26because a reduced price is necessary to provide an incentive to correct the blighted
54.27conditions that make the lands undesirable in the open market, or the reduced price will
54.28lead to the development of affordable housing; and
54.29(2) the governmental subdivision or state agency has documented its specific plans
54.30for correcting the blighted conditions or developing affordable housing, and the specific
54.31law or laws that empower it to acquire real property in furtherance of the plans.
54.32If the sale under this paragraph is to a governmental subdivision of the state, the
54.33commissioner of revenue must convey the property on behalf of the state by quit claim
54.34deed. If the sale under this paragraph is to a state agency, the commissioner must issue a
54.35conveyance document that releases the property from the trust in favor of the taxing
55.1(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
55.2may be conveyed by
the commissioner of revenue
may convey by deed
in the name
of the state
a tract of tax-forfeited land held in trust in favor of the taxing districts
governmental subdivision for an authorized public use, if an application is submitted to
the commissioner which includes a statement of facts as to the use to be made of the tract
and the need therefor
and the favorable
recommendation of the county board. For the
55.7purposes of this paragraph, "authorized public use" means a use that allows an indefinite
55.8segment of the public to physically use and enjoy the property in numbers appropriate
55.9to its size and use, or is for a public service facility. Authorized public uses as defined
55.10in this paragraph are limited to:
55.11(1) a road, or right-of-way for a road;
55.12(2) a park that is both available to, and accessible by, the public that contains
55.13amenities such as campgrounds, playgrounds, athletic fields, trails, or shelters;
55.14(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
55.15with a reasonable amount of surrounding land maintained in its natural state;
55.16(4) transit ways for buses or commuter trains;
55.17(5) public beaches or boat launches;
55.18(6) public parking;
55.19(7) civic recreation or conference facilities; and
55.20(8) public service facilities such as fire halls, police stations, lift stations, water
55.21towers, sanitation facilities, water treatment facilities, and administrative offices.
55.22(f) The commissioner of revenue shall convey a parcel of nonconservation
55.23tax-forfeited land to a local governmental subdivision of the state by quit claim deed
55.24on behalf of the state upon the favorable recommendation of the county board if the
55.25governmental subdivision has certified to the board that prior to forfeiture the subdivision
55.26was entitled to the parcel under a written development agreement or instrument, but
55.27the conveyance failed to occur prior to forfeiture. No compensation or consideration is
55.28required for, and no conditions attach to, the conveyance.
55.29 (g) The commissioner of revenue shall convey a parcel of nonconservation
55.30tax-forfeited land to the association of a common interest community by quit claim deed
55.31upon the favorable recommendation of the county board if the association certifies to the
55.32board that prior to forfeiture the association was entitled to the parcel under a written
55.33agreement, but the conveyance failed to occur prior to forfeiture. No compensation or
55.34consideration is required for, and no conditions attach to, the conveyance.
55.35(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the
55.36state for less than its market value for either: (1) creation or preservation of wetlands;
56.1(2) drainage or storage of storm water under a storm water management plan; or (3)
56.2preservation, or restoration and preservation, of the land in its natural state. The deed must
56.3contain a restrictive covenant limiting the use of the land to one of these purposes for
56.430 years or until the property is reconveyed back to the state in trust. At any time, the
56.5governmental subdivision may reconvey the property to the state in trust for the taxing
56.6districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
56.7No part of a purchase price determined under this paragraph shall be refunded upon a
56.8reconveyance, but the amount paid for a conveyance under this paragraph may be taken
56.9into account by the county board when setting the terms of a future sale of the same
56.10property to the same governmental subdivision under paragraph (b) or (d). If the lands
56.11are unplatted and located outside of an incorporated municipality and the commissioner
56.12of natural resources determines there is a mineral use potential, the sale is subject to the
56.13approval of the commissioner of natural resources.
56.14EFFECTIVE DATE.This section is effective July 1, 2009.
Sec. 3. Minnesota Statutes 2008, section 282.01, subdivision 1b, is amended to read:
Subd. 1b. Conveyance; targeted neighborhood lands.
subdivision 1a, in the case of tax-forfeited lands located in a targeted neighborhood
56.18 defined in section
469.201, subdivision 10 in a city of the first class
, the commissioner of
revenue shall convey by quit claim
deed in the name of the state any tract of tax-forfeited
land held in trust in favor of the taxing districts, to a political subdivision of the state
submits an application to the commissioner of revenue and the favorable
of the county board. For purposes of this subdivision, the term "targeted neighborhood"
56.23has the meaning given in section 469.201, subdivision 10, except that the land must be
56.24located within a first class city.
(b) The application under paragraph (a) must include a statement of facts as to the
56.26 use to be made of the tract, the need therefor, and a resolution, adopted by the governing
56.27 body of the political subdivision, finding that the conveyance of a tract of tax-forfeited
56.28 land to the political subdivision is necessary to provide for the redevelopment of land as
56.29 productive taxable property. Deeds of conveyance issued under paragraph (a) are not
56.30 conditioned on continued use of the property for the use stated in the application.
56.31EFFECTIVE DATE.This section is effective July 1, 2009.
Sec. 4. Minnesota Statutes 2008, section 282.01, subdivision 1c, is amended to read:
Subd. 1c. Deed of conveyance; form; approvals.
The deed of conveyance for
property conveyed for
a an authorized
public use under the authorities in subdivision
57.31a, paragraph (e),
must be on a form approved by the attorney general and must be
conditioned on continued use for the purpose stated in the application as provided in this
57.5section. These deeds are conditional use deeds that convey a defeasible estate. Reversion
57.6of the estate occurs by operation of law and without the requirement for any affirmative
57.7act by or on behalf of the state when there is a failure to put the property to the approved
57.8authorized public use for which it was conveyed, or an abandonment of that use, except as
57.9provided in subdivision 1d
57.10EFFECTIVE DATE.This section is effective July 1, 2009.
Sec. 5. Minnesota Statutes 2008, section 282.01, subdivision 1d, is amended to read:
Subd. 1d. Reverter for failure to use; conveyance to state. (a)
If after three years
from the date of the conveyance a governmental subdivision to which tax-forfeited land
has been conveyed for
a specified an authorized
public use as provided in
57.15subdivision 1a, paragraph (e),
fails to put the land to that use, or abandons that use, the
governing body of the subdivision
may, must: (1)
with the approval of the county board,
purchase the property for an authorized public purpose at the present
value as determined by the county board
. In that case, the commissioner of revenue
57.19 shall, upon proper written application approved by the county board, issue an appropriate
57.20 deed to the subdivisions free of a use restriction and reverter. The governing body may
57.21 also, or (2)
authorize the proper officers to convey the land, or the part of the land not
required for an authorized public use, to the state of Minnesota
. in trust for the taxing
57.23districts. If the governing body purchases the property under clause (1), the commissioner
57.24of revenue shall, upon property application submitted by the county auditor, convey
57.25the property on behalf of the state by quit claim deed to the subdivision free of a use
57.26restriction and the possibility of reversion or defeasement. If the governing body decides
57.27to reconvey the property to the state under clause (2),
the officers shall execute a deed of
conveyance immediately. The conveyance is subject to the approval of the commissioner
and its form must be approved by the attorney general.
A sale, lease, transfer, or other
57.30 conveyance of tax-forfeited lands by a housing and redevelopment authority, a port
57.31 authority, an economic development authority, or a city as authorized by chapter 469 is not
57.32 an abandonment of use and the lands shall not be reconveyed to the state nor shall they
57.33 revert to the state. A certificate made by a housing and redevelopment authority, a port
57.34 authority, an economic development authority, or a city referring to a conveyance by it
57.35 and stating that the conveyance has been made as authorized by chapter 469 may be filed
58.1 with the county recorder or registrar of titles, and the rights of reverter in favor of the state
58.2 provided by subdivision 1e will then terminate. No vote of the people is required for the
58.3 conveyance. For the purposes of this subdivision, there is no failure to put the land to the
58.4authorized public use and no abandonment of that use if a formal plan of the governmental
58.5subdivision, including, but not limited to, a comprehensive plan or land use plan that
58.6shows an intended future use of the land for the authorized public use.
58.7(b) Property held by a governmental subdivision of the state under a conditional use
58.8deed executed by the commissioner of revenue after January 1, 2006, may be acquired
58.9by that governmental subdivision after 15 years from the date of the conveyance if
58.10the commissioner determines upon written application from the subdivision that the
58.11subdivision has in fact put the property to the authorized public use for which it was
58.12conveyed, and the subdivision has made a finding that it has no current plans to change
58.13the use of the lands. Prior to conveying the property, the commissioner shall inquire
58.14whether the county board where the land is located objects to a conveyance of the property
58.15to the subdivision without conditions and without further act by or obligation of the
58.16subdivision. If the county does not object within 60 days, and the commissioner makes
58.17a favorable determination, the commissioner shall issue a quit claim deed on behalf of
58.18the state unconditionally conveying the property to the governmental subdivision. For
58.19purposes of this paragraph, demonstration of an intended future use for the authorized
58.20public use in a formal plan of the governmental subdivision does not constitute use for
58.21that authorized public use.
58.22(c) Property held by a governmental subdivision of the state under a conditional use
58.23deed executed by the commissioner of revenue before January 1, 2006, is released from
58.24the use restriction and possibility of reversion on January 1, 2021, if the county board
58.25records a document describing the land and citing this paragraph. The county board may
58.26authorize the county treasurer to deduct the amount of the recording fees from future
58.27settlements of property taxes to the subdivision.
58.28(d) All property held by a governmental subdivision of the state under a conditional
58.29use deed executed by the commissioner of revenue is released from the use restriction
58.30and possibility of reversion on the later of: (1) January 1, 2015; (2) 40 years after the
58.31date the deed was executed; or (3) upon final resolution of an appeal to district court
58.32under subdivision 1e if the appeal was commenced prior to January 1, 2015. Upon the
58.33occurrence of clause (1), (2), or (3), the governmental subdivision may record a certificate
58.34referring to the land, the original conveyance, and to the release under this paragraph.
58.35EFFECTIVE DATE.This section is effective July 1, 2009.
Sec. 6. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
59.3 Subd. 1g. Conditional use deed fees. (a) A governmental subdivision of the state
59.4applying for a conditional use deed under subdivision 1a, paragraph (e), must submit a fee
59.5of $250 to the commissioner of revenue along with the application. If the application is
59.6denied, the commissioner shall refund $150 of the application fee.
59.7(b) The proceeds from the fees must be deposited in a Department of Revenue
59.8conditional use deed revolving fund. The sums deposited into the revolving fund are
59.9appropriated to the commissioner of revenue for the purpose of making the refunds
59.10described in this subdivision, and administering conditional use deed laws.
59.11EFFECTIVE DATE.This section is effective for applications received by the
59.12commissioner after June 30, 2009.
Sec. 7. Minnesota Statutes 2008, section 282.01, subdivision 2, is amended to read:
Subd. 2. Conservation lands; county board supervision. (a)
Lands classified as
, unless reclassified as nonconservation lands, sold to a governmental
59.16 subdivision of the state, designated as lands primarily suitable for forest production and
59.17 sold as hereinafter provided, or released from the trust in favor of the taxing districts, as
59.18 herein provided, will must
be held under the supervision of the county board of the county
. and must not be conveyed or sold unless the lands are:
59.20 The county board may, by resolution duly adopted, declare lands classified as
59.21 conservation lands as primarily suitable for timber production and as lands which should
59.22 be placed in private ownership for such purposes. If such action be approved by the
59.23 commissioner of natural resources, the lands so designated, or any part thereof, may be
59.24 sold by the county board in the same manner as provided for the sale of lands classified as
59.25 nonconservation lands. Such county action and the approval of the commissioner shall be
59.26 limited to lands lying within areas zoned for restricted uses under the provisions of Laws
59.27 1939, chapter 340, or any amendments thereof.
59.28(1) reclassified as nonconservation lands;
59.29(2) conveyed to a governmental subdivision of the state under subdivision 1a;
59.30(3) released from the trust in favor of the taxing districts as provided in paragraph
59.32(4) conveyed or sold under the authority of another general or special law.
The county board may, by resolution duly adopted, resolve that certain lands
classified as conservation lands shall be devoted to conservation uses and may submit
resolution to the commissioner of natural resources. If, upon investigation,
the commissioner of natural resources determines that the lands covered by
resolution, or any part thereof, can be managed and developed for conservation purposes,
the commissioner shall make a certificate describing the lands and reciting the acceptance
thereof on behalf of the state
for such purposes
. The commissioner shall transmit the
certificate to the county auditor, who shall note the same upon the auditor's records and
record the same with the county recorder. The title to all lands so accepted shall be held
by the state free from any trust in favor of any and all taxing districts and
shall be devoted thereafter to the purposes of forestry, water conservation, flood control,
parks, game refuges, controlled game management areas, public shooting grounds, or
other public recreational or conservation uses, and managed, controlled, and regulated
for such purposes
under the jurisdiction of the commissioner of natural resources and
the divisions of the department.
60.13(c) All proceeds derived from the sale of timber, lease of crops of hay, or other
60.14revenue from lands under the jurisdiction of the commissioner of natural resources shall
60.15be credited to the general fund of the state.
In case (d) If
the commissioner of natural resources
shall determine determines
any tract of land
so held acquired
by the state under paragraph (b)
and situated within or
adjacent to the boundaries of any governmental subdivision of the state is suitable for use
subdivision for any authorized public purpose, the commissioner may convey
tract by deed in the name of the state to
subdivision upon the filing
with the commissioner of a resolution adopted by a majority vote of all the members
of the governing body thereof, stating the purpose for which the land is desired. The
deed of conveyance shall be upon a form approved by the attorney general and must be
conditioned upon continued use for the purpose stated in the resolution.
60.25 derived from the sale of timber, lease of hay stumpage, or other revenue from such
60.26 lands under the jurisdiction of the natural resources commissioner shall be paid into the
60.27 general fund of the state.
The county auditor, with the approval of the county board, may lease conservation
lands remaining under the
of the county board and sell timber
and hay stumpage thereon in the manner hereinafter provided, and all proceeds derived
therefrom shall be distributed in the same manner as provided in section
60.32EFFECTIVE DATE.This section is effective July 1, 2009.
Sec. 8. Minnesota Statutes 2008, section 282.01, subdivision 3, is amended to read:
Subd. 3. Nonconservation lands; appraisal and sale. (a)
All parcels of land
classified as nonconservation, except those which may be reserved, shall be sold as
provided, if it is determined, by the county board of the county in which the parcels lie,
that it is advisable to do so, having in mind their accessibility, their proximity to existing
public improvements, and the effect of their sale and occupancy on the public burdens.
Any parcels of land proposed to be sold shall be first appraised by the county board of
the county in which the parcels lie. The parcels may be reappraised whenever the county
board deems it necessary to carry out the intent of sections
In an appraisal the value of the land and any standing timber on it shall be
separately determined. No parcel of land containing any standing timber may be sold until
the appraised value of the timber on it and the sale of the land have been approved by the
commissioner of natural resources. The commissioner shall base review of a proposed
sale on the policy and considerations specified in subdivision 1. The decision of the
commissioner shall be in writing and shall state the reasons for it. The commissioner's
decision is exempt from the rulemaking provisions of chapter 14 and section
does not apply. The county may appeal the decision of the commissioner in accordance
with chapter 14.
In any county in which a state forest or any part of it is located, the county
auditor shall submit to the commissioner at least 60 days before the first publication of the
list of lands to be offered for sale a list of all lands included on the list which are situated
outside of any incorporated municipality. If, at any time before the opening of the sale, the
commissioner notifies the county auditor in writing that there is standing timber on any
land, the parcel shall not be sold unless the requirements of this section
respecting the separate appraisal of the timber and the approval of the appraisal by the
commissioner have been complied with. The commissioner may waive the requirement
of the 60-day notice as to any parcel of land which has been examined and the timber
value approved as required by this section.
If any public improvement is made by a municipality after any parcel of land has
been forfeited to the state for the nonpayment of taxes, and the improvement is assessed in
whole or in part against the property benefited by it, the clerk of the municipality shall
certify to the county auditor, immediately upon the determination of the assessments for
the improvement, the total amount that would have been assessed against the parcel of land
if it had been subject to assessment; or if the public improvement is made, petitioned for,
ordered in or assessed, whether the improvement is completed in whole or in part, at any
time between the appraisal and the sale of the parcel of land, the cost of the improvement
shall be included as a separate item and added to the appraised value of the parcel of land
at the time it is sold. No sale of a parcel of land shall discharge or free the parcel of land
from lien for the special benefit conferred upon it by reason of the public improvement
until the cost of it, including penalties, if any, is paid. The county board shall determine
the amount, if any, by which the value of the parcel was enhanced by the improvement and
include the amount as a separate item in fixing the appraised value for the purpose of sale.
In classifying, appraising, and selling the lands, the county board may designate the tracts
62.5 as assessed and acquired, or may by resolution provide for the subdivision of the tracts into
62.6 smaller units or for the grouping of several tracts into one tract when the subdivision or
62.7 grouping is deemed advantageous for the purpose of sale. Each such smaller tract or larger
62.8 tract must be classified and appraised as such before being offered for sale. If any such
62.9 lands have once been classified, the board of county commissioners, in its discretion, may,
62.10 by resolution, authorize the sale of the smaller tract or larger tract without reclassification.
62.11EFFECTIVE DATE.This section is effective July 1, 2009.
Sec. 9. Minnesota Statutes 2008, section 282.01, subdivision 4, is amended to read:
Subd. 4. Sale: method, requirements, effects.
The sale authorized under
must be conducted by the county auditor at the county seat of the county in
which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may
be conducted in any county facility within the county. The sale must not be for less than
62.17the appraised value except as provided in subdivision 7a.
The parcels must be sold for
and at not less than the appraised value
, unless the county board of the county
has adopted a resolution providing for their sale on terms, in which event the resolution
controls with respect to the sale. When the sale is made on terms other than for cash only
(1) a payment of at least ten percent of the purchase price must be made at the time of
purchase, and the balance must be paid in no more than ten equal annual installments, or
(2) the payments must be made in accordance with county board policy, but in no event
may the board require more than 12 installments annually, and the contract term must not
be for more than ten years. Standing timber or timber products must not be removed from
these lands until an amount equal to the appraised value of all standing timber or timber
products on the lands at the time of purchase has been paid by the purchaser. If a parcel of
land bearing standing timber or timber products is sold at public auction for more than
the appraised value, the amount bid in excess of the appraised value must be allocated
between the land and the timber in proportion to their respective appraised values. In that
case, standing timber or timber products must not be removed from the land until the
amount of the excess bid allocated to timber or timber products has been paid in addition
to the appraised value of the land. The purchaser is entitled to immediate possession,
subject to the provisions of any existing valid lease made in behalf of the state.
For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
is subject to interest at the rate determined pursuant to section
. The unpaid balance
of the purchase price for sales occurring after December 31, 1990, is subject to interest
at the rate determined in section
279.03, subdivision 1a
. The interest rate is subject to
change each year on the unpaid balance in the manner provided for rate changes in section
279.03, subdivision 1a
, whichever, is applicable. Interest on the unpaid contract
balance on sales occurring before July 1, 1982, is payable at the rate applicable to the sale
at the time that the sale occurred.
63.9EFFECTIVE DATE.This section is effective July 1, 2009.
Sec. 10. Minnesota Statutes 2008, section 282.01, subdivision 7, is amended to read:
Subd. 7. County sales; notice, purchase price, disposition.
The sale must
commence at the time determined by the county board of the county in which the parcels
are located. The county auditor shall offer the parcels of land in order in which they
appear in the notice of sale, and shall sell them to the highest bidder, but not for a sum
less than the appraised value, until all of the parcels of land have been offered. Then the
county auditor shall sell any remaining parcels to anyone offering to pay the appraised
value, except that if the person could have repurchased a parcel of property under section
, that person may not purchase that same parcel of property at the sale
under this subdivision for a purchase price less than the sum of all taxes, assessments,
penalties, interest, and costs due at the time of forfeiture computed under section
and any special assessments for improvements certified as of the date of sale. The sale
must continue until all the parcels are sold or until the county board orders a reappraisal or
withdraws any or all of the parcels from sale. The list of lands may be added to and the
added lands may be sold at any time by publishing the descriptions and appraised values.
The added lands must be: (1) parcels of land that have become forfeited and classified
as nonconservation since the commencement of any prior sale; (2) parcels classified as
that have been reappraised; (3) parcels that have been reclassified as
nonconservation; or (4) other parcels that are subject to sale but were omitted from the
existing list for any reason. The descriptions and appraised values must be published in
the same manner as provided for the publication of the original list. Parcels added to the
list must first be offered for sale to the highest bidder before they are sold at appraised
value. All parcels of land not offered for immediate sale, as well as parcels that are offered
and not immediately sold, continue to be held in trust by the state for the taxing districts
interested in each of the parcels, under the supervision of the county board. Those parcels
may be used for public purposes until sold, as directed by the county board.
64.1EFFECTIVE DATE.This section is effective July 1, 2009.
Sec. 11. Minnesota Statutes 2008, section 282.01, subdivision 7a, is amended to read:
Subd. 7a. City sales; alternate procedures.
Land located in a home rule charter
or statutory city, or in a town which cannot be improved because of noncompliance with
local ordinances regarding minimum area, shape, frontage or access may be sold by the
county auditor pursuant to this subdivision if the auditor determines that a nonpublic sale
will encourage the approval of sale of the land by the city or town and promote its return
to the tax rolls. If the physical characteristics of the land indicate that its highest and best
use will be achieved by combining it with an adjoining parcel and the city or town has not
adopted a local ordinance governing minimum area, shape, frontage, or access, the land
may also be sold pursuant to this subdivision. If the property consists of an undivided
interest in land or land and improvements, the property may also be sold to the other
owners under this subdivision. The sale of land pursuant to this subdivision shall be
subject to any conditions imposed by the county board pursuant to section
governing body of the city or town may recommend to the county board conditions to be
imposed on the sale. The county auditor may restrict the sale to owners of lands adjoining
the land to be sold. The county auditor shall conduct the sale by sealed bid or may select
another means of sale. The land shall be sold to the highest bidder
but in no event shall the
64.19 land and may
be sold for less than its appraised value. All owners of land adjoining the
land to be sold shall be given a written notice at least 30 days prior to the sale.
This subdivision shall be liberally construed to encourage the sale and utilization
of tax-forfeited land, to eliminate nuisances and dangerous conditions and to increase
compliance with land use ordinances.
64.24EFFECTIVE DATE.This section is effective July 1, 2009.
Sec. 12. Minnesota Statutes 2008, section 287.2205, is amended to read:
64.26287.2205 TAX-FORFEITED LAND.
Before a state deed for tax-forfeited land may be issued, the deed tax must be paid
by the purchaser of tax-forfeited land whether the purchase is the result of a public
auction or private sale or a repurchase of tax-forfeited land. State agencies and local
units of government that acquire tax-forfeited land by purchase or any other means are
subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a
governmental subdivision for an authorized public use under section
, or for redevelopment purposes under section
282.01, subdivision 1b
65.1EFFECTIVE DATE.This section is effective July 1, 2009.
Sec. 13. REPEALER.
65.3Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, and 11; and 383A.76,
65.5EFFECTIVE DATE.This section is effective July 1, 2009.
Section 1. Minnesota Statutes 2008, section 270B.14, subdivision 16, is amended to
Subd. 16. Disclosure to law enforcement authorities.
involving threat of death or physical injury to any individual, or harassment of a
65.12Department of Revenue employee,
the commissioner may disclose return information
to the extent necessary to apprise appropriate federal, state, or local law enforcement
authorities of such circumstances. For purposes of this subdivision, "harassment" is
65.15purposeful conduct directed at an individual and causing an individual to feel frightened,
65.16threatened, oppressed, persecuted, or intimidated. For purposes of harassment, the return
65.17information that initially can be disclosed is limited to the name, address, and phone
65.18number of the harassing individual, the name of the employee being harassed, and the
65.19nature and circumstances of the harassment.
Data disclosed under this subdivision are
classified under section
once they are received by the law enforcement authority.
65.21EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 2. Minnesota Statutes 2008, section 270C.12, is amended by adding a subdivision
65.24 Subd. 5. Duration. Notwithstanding the provisions of any statutes to the contrary,
65.25including section 15.059, the coordinating committee as established by this section to
65.26oversee and coordinate preparation of the microdata samples of income tax returns and
65.27other information shall not expire.
65.28EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 3. Minnesota Statutes 2008, section 270C.446, subdivision 2, is amended to read:
Subd. 2. Required and excluded tax preparers.
(a) Subject to the limitations of
paragraph (b), the commissioner must publish lists of tax preparers as defined in section
66.3289A.60, subdivision 13
, paragraph (f), who have been convicted under section
66.4for returns or claims prepared as a tax preparer
or assessed penalties in excess of $1,000
13, paragraph (a).
(b) For the purposes of this section, tax preparers are not subject to publication if:
(1) an administrative or court action contesting the penalty has been filed or served
and is unresolved at the time when notice would be given under subdivision 3;
(2) an appeal period to contest the penalty has not expired; or
(3) the commissioner has been notified that the tax preparer is deceased.
66.11EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 4. Minnesota Statutes 2008, section 270C.446, subdivision 5, is amended to read:
Subd. 5. Removal from list.
The commissioner shall remove the name of a tax
preparer from the list of tax preparers published under this section:
(1) when the commissioner determines that the name was included on the list in error;
(2) within 90 days after the preparer has demonstrated to the commissioner that
fully paid all fines imposed, served any suspension, satisfied any sentence
demonstrated to the satisfaction of the commissioner that the preparer has
successfully completed any remedial actions required by the commissioner, the State
Board of Accountancy, or the Lawyers Board of Professional Responsibility; or
(3) when the commissioner has been notified that the tax preparer is deceased.
66.22EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 5. Minnesota Statutes 2008, section 270C.56, subdivision 1, is amended to read:
Subdivision 1. Liability imposed.
A person who, either singly or jointly with
others, has the control of, supervision of, or responsibility for filing returns or reports,
paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a
person who is liable under any other law, is liable for the payment of taxes
, penalties, and
arising under chapters 295, 296A, 297A, 297F, and 297G, or sections
, for the taxes listed in this subdivision,
the applicable penalties
for nonpayment under section
289A.60 and interest on those taxes
66.31EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 6. Minnesota Statutes 2008, section 289A.41, is amended to read:
67.2289A.41 BANKRUPTCY; SUSPENSION OF TIME.
The running of the period during which a tax must be assessed or collection
proceedings commenced is suspended during the period from the date of a filing of a
petition in bankruptcy until 30 days after either notice to the commissioner of revenue that
the bankruptcy proceedings have been closed or dismissed, or notice that
stay has been terminated or has expired, whichever occurs first.
The suspension of the statute of limitations under this section applies to the person
the petition in bankruptcy is filed against and other persons who may also be wholly or
partially liable for the tax.
67.11EFFECTIVE DATE.This section is effective the day following final enactment.
Section 1. EDUCATION.
67.15 Subdivision 1. Department of Education. The sums indicated in this section are
67.16appropriated from the general fund to the Department of Education for the fiscal years
67.18 Subd. 2. General education aid. For general education aid under Minnesota
67.19Statutes, section 126C.13, subdivision 4:
67.22The 2010 appropriation includes $...,...,000 for 2009 and $...,...,000 for 2010.
67.23The 2011 appropriation includes $...,...,000 for 2010 and $...,...,000 for 2011.
67.24 Subd. 3. Special education; regular. For special education aid under Minnesota
67.25Statutes, section 125A.75:
67.28The 2010 appropriation includes $...,...,000 for 2009 and $...,...,000 for 2010.
67.29The 2011 appropriation includes $...,...,000 for 2010 and $...,...,000 for 2011.
67.30 Subd. 4. Special education; excess costs. For excess cost aid under Minnesota
67.31Statutes, section 125A.79, subdivision 7:
68.3The 2010 appropriation includes $...,...,000 for 2009 and $...,...,000 for 2010.
68.4The 2011 appropriation includes $...,...,000 for 2010 and $...,...,000 for 2011.
|Sec. 2. HUMAN SERVICES
||Available for the Year
||Ending June 30
68.11The sums shown in the columns marked
68.12"Appropriations" are appropriated from the
68.13general fund to the Department of Human
68.14Services for the purposes specified in the
68.15following subdivisions. "The first year" is
68.16fiscal year 2010. "The second year" is fiscal
|Subdivision 1.Total Appropriation
|Subd. 2.Health Care
|(a) Medical Assistance Basic Health Care
Grants; Families and Children
68.23Inpatient Hospital Rate Increase. Effective
68.24for services rendered on or after July 1, 2009,
68.25the commissioner of human services shall
68.26provide a ... percent increase in medical
68.27assistance payments for inpatient hospital
|(b) Medical Assistance Basic Health Care
Grants; Elderly and Disabled
68.31Provider Rate Increase. (a) Effective July
68.321, 2009, the commissioner of human services
68.33shall pay to each nursing facility reimbursed
68.34under Minnesota Statutes, section 256B.434,
68.35an operating payment rate adjustment equal
69.1to ... percent of the operating payment rates
69.2determined by the blending in Minnesota
69.3Statutes, section 256B.441, subdivision 55,
69.5(b) Effective July 1, 2009, the commissioner
69.6of human services shall pay to each
69.7intermediate care facility for persons with
69.8developmental disabilities reimbursed under
69.9Minnesota Statutes, section 256B.5012, an
69.10adjustment to the total operating payment
69.11rate of ... percent.
|(c) Medical Assistance Long-Term Care