Minnesota Legislature
HF 947
1st Engrossment - 90th Legislature (2017 - 2018) Posted on 12/12/2018 01:15pm
Current Version - 1st Engrossment
2.26 2.27
2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 2.37 2.38 2.39 2.40 2.41 2.42 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16
3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 4.1 4.2 4.3 4.4 4.5 4.6 4.7
4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24
4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 5.1 5.2
5.3
5.4 5.5
5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15
6.16 6.17
6.18 6.19 6.20 6.21 6.22
6.23 6.24
6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17
7.18 7.19
7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 9.1 9.2
9.3 9.4
9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30
9.31 9.32
10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22
10.23 10.24
10.25 10.26 10.27 10.28 10.29 10.30 10.31 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15
11.16 11.17
11.18 11.19 11.20 11.21
11.22 11.23
11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26
12.27 12.28 12.29 12.30 12.31
13.1 13.2 13.3 13.4 13.5 13.6
13.7 13.8
13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16
13.17
13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13
14.14 14.15
14.16 14.17 14.18 14.19 14.20 14.21 14.22
14.23 14.24
14.25 14.26 14.27 14.28 14.29 14.30 15.1 15.2 15.3
15.4 15.5 15.6 15.7
15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16
15.17 15.18
15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30
15.31 15.32
16.1 16.2 16.3 16.4 16.5 16.6 16.7
16.8 16.9
16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 17.1 17.2 17.3
17.4 17.5
17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 18.1 18.2
18.3 18.4
18.5 18.6 18.7 18.8 18.9
18.10 18.11
18.12 18.13 18.14 18.15 18.16
18.17 18.18
18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29
18.30 18.31
19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10
19.11 19.12
19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22
19.23 19.24
19.25 19.26 19.27 19.28 19.29
19.30 19.31
20.1 20.2 20.3 20.4 20.5 20.6 20.7
20.8 20.9
20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8
21.9 21.10
21.11 21.12 21.13 21.14
21.15 21.16
21.17 21.18 21.19 21.20 21.21
21.22 21.23
21.24 21.25 21.26 21.27 21.28
21.29 21.30
22.1 22.2 22.3 22.4
22.5 22.6
22.7 22.8 22.9 22.10 22.11 22.12 22.13
22.14 22.15
22.16 22.17 22.18 22.19 22.20 22.21 22.22
22.23 22.24
22.25 22.26 22.27 22.28 22.29
22.30 22.31
23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13
23.14 23.15
23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31
23.32 23.33
24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13
24.14 24.15
24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21
25.22 25.23
25.24 25.25 25.26 25.27 25.28 25.29
25.30 25.31
26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20
27.21 27.22
27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11
28.12 28.13
28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 30.1 30.2 30.3 30.4 30.5 30.6
30.7 30.8
30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22
30.23 30.24
30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9
32.10 32.11
32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24
32.25 32.26
32.27 32.28 32.29 32.30 32.31 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11
33.12 33.13
33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23
33.24 33.25
33.26 33.27 33.28 33.29 33.30 33.31 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24
35.25 35.26
35.27 35.28 35.29 35.30 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13
36.14 36.15
36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 37.1 37.2
37.3 37.4
37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 38.1 38.2 38.3 38.4 38.5
38.6 38.7
38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26
38.27 38.28
39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31
39.32 39.33
40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21
40.22 40.23
40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31
41.1 41.2
41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27
42.28 42.29
43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20
43.21 43.22
43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11
44.12 44.13
44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.22 44.21 44.24 44.23 44.26 44.25 44.28 44.27 44.30 44.29 44.32 44.31 44.33 44.34 44.35 44.36 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.9 45.8 45.11 45.10 45.13 45.12 45.15 45.14 45.17 45.16 45.19 45.18 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33
45.34 45.35
46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17
46.18 46.19
46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21
48.22
48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21
50.22 50.23
50.24 50.25 50.26 50.27 50.28
50.29 50.30 50.31 50.32
51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11
51.12 51.13
51.14 51.15 51.16 51.17 51.18 51.19
51.20 51.21
51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24
52.25
52.26 52.27 52.28 52.29 52.30 52.31 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30
55.31 55.32
56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25
56.26 56.27
56.28 56.29 56.30 56.31
56.32 56.33
57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.10 57.9 57.8 57.12 57.11 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34 57.35 57.36 57.37 57.38 57.39 57.40 57.41 57.42 57.43 57.44 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15
58.16 58.17
58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.27 58.26 58.25 58.29 58.28 58.30 58.31 58.32 58.33 58.34 58.35 58.36 58.37 58.38 58.39 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 59.35
59.36 59.37
59.38 59.39 59.40 59.41 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20
60.21 60.22
60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19
62.20 62.21
62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20
63.21 63.22
63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25
65.26 65.27
65.28 65.29 65.30 65.31 66.1 66.2 66.3 66.4 66.5
66.6 66.7
66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19
66.20 66.21
66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32
67.1 67.2
67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23
67.24 67.25
67.26 67.27 67.28 67.29 67.30 67.31
68.1 68.2
68.3 68.4 68.5 68.6
68.7 68.8
68.9 68.10
68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29
70.30 70.31
71.1 71.2 71.3 71.4 71.5 71.6 71.7
71.8 71.9
71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13
72.14 72.15
72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 73.1 73.2
73.3 73.4
73.5 73.6 73.7 73.8 73.9 73.10 73.11
73.12 73.13
73.14 73.15 73.16 73.17 73.18 73.19 73.20
73.21 73.22
73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12
74.13 74.14
74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23
74.24 74.25
74.26 74.27 74.28 74.29 74.30 74.31 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12
75.13 75.14
75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 76.32 76.33 76.34 76.35 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 78.1 78.2 78.3
78.4 78.5
78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16
78.17 78.18
78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 80.1 80.2 80.3 80.4 80.5
80.6 80.7
80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31
81.1 81.2
81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 82.1 82.2 82.3 82.4
82.5 82.6 82.7 82.8 82.9
82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17
82.18
82.19 82.20
82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 83.34 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8
84.9 84.10
84.11 84.12 84.13 84.14 84.15 84.16 84.17
84.18 84.19
84.20 84.21 84.22 84.23 84.24 84.25
84.26 84.27
85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13
85.14 85.15
85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23
85.24 85.25
85.26 85.27 85.28 85.29 85.30 85.31
86.1 86.2
86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12
86.13 86.14
86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30
88.1 88.2
88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19
88.20
88.21 88.22
88.23 88.24 88.25
88.26
89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22
89.23 89.24
89.25 89.26
89.27 89.28 89.29 89.30 89.31 89.32 89.33 90.1 90.2
90.3
90.4 90.5 90.6 90.7 90.8 90.9 90.10
90.11
90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26
90.27 90.28
91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24
91.25 91.26
91.27 91.28 91.29 91.30 91.31 91.32 91.33 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10
93.11
93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 95.33 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24
98.25 98.26
98.27 98.28 98.29 98.30 98.31 98.32 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11
100.12 100.13
100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25
100.26
100.27 100.28 100.29 100.30 100.31 100.32 101.1 101.2 101.3
101.4
101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 102.35 102.36 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31
103.32
104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 104.34 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34 105.35 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13
110.14
110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12
113.13 113.14
113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 114.1 114.2 114.3 114.4 114.5
114.6
114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24
114.25
114.26 114.27 114.28 114.29 114.30 114.31 114.32 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12
115.13
115.14 115.15 115.16 115.17 115.18 115.19
115.20
115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32 116.33 116.34 116.35
117.1 117.2
117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 117.33 117.34
118.1 118.2
118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22
119.23 119.24
119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 119.33 120.1 120.2 120.3 120.4 120.5
120.6 120.7 120.8
120.9 120.10 120.11
120.12
120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24
120.25 120.26
120.27 120.28 120.29 120.30 121.1 121.2 121.3 121.4 121.5 121.6
121.7 121.8 121.9 121.10
121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26
121.27
121.28 121.29 121.30 121.31
122.1 122.2 122.3
122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15
122.16 122.17 122.18
122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27
122.28 122.29 122.30
123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19
123.20
123.21 123.22
123.23 123.24
123.25
123.26 123.27 123.28 123.29 123.30 123.31 124.1 124.2 124.3 124.4 124.5
124.6 124.7 124.8
124.9 124.10 124.11 124.12 124.13 124.14 124.15
124.16 124.17 124.18
124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 125.1 125.2 125.3 125.4
125.5 125.6 125.7
125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20
125.21 125.22 125.23
125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 125.33
126.1 126.2 126.3
126.4 126.5
126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20
126.21
126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 127.1 127.2 127.3 127.4 127.5
127.6 127.7
127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17
128.18
128.19 128.20
128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 128.31 128.32
129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10
129.11 129.12 129.13 129.14 129.15 129.16 129.17
129.18 129.19 129.20 129.21 129.22
129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 130.1 130.2 130.3 130.4 130.5 130.6 130.7
130.8 130.9
130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 130.33 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 131.33 131.34 131.35 132.1 132.2 132.3 132.4 132.5
132.6 132.7
132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 132.32 133.1 133.2 133.3 133.4 133.5
133.6
133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 133.33 133.34 134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10
134.11
134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25
134.26
134.27 134.28 134.29 134.30 134.31 134.32 134.33 135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17
135.18 135.19 135.20
135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29 135.30 135.31 135.32 135.33
136.1 136.2 136.3
136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15
136.16 136.17 136.18
136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 136.32 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17
137.18 137.19
137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32
138.1 138.2 138.3
138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21
138.22 138.23 138.24
138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19
139.20 139.21 139.22
139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 139.31 139.32 140.1 140.2 140.3
140.4
140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 140.33 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10
141.11 141.12 141.13
141.14 141.15 141.16 141.17 141.18 141.19 141.20
141.21 141.22 141.23
141.24 141.25 141.26 141.27
141.28 141.29
142.1 142.2 142.3 142.4 142.5 142.6
142.7
142.8 142.9 142.10 142.11
142.12
142.13 142.14
142.15 142.16 142.17 142.18 142.19 142.20 142.21 142.22 142.23 142.24 142.25 142.26 142.27
142.28
143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15 143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30
143.31 143.32
144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10 144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31 144.32 144.33 144.34 144.35 144.36
145.1 145.2
145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17 145.18 145.19 145.20 145.21 145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29 145.30 145.31 145.32 145.33 145.34 146.1 146.2 146.3 146.4 146.5 146.6
146.7 146.8
146.9 146.10
146.11 146.12 146.13 146.14 146.15 146.16 146.17
146.18
146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29 146.30 146.31 147.1 147.2 147.3 147.4 147.5 147.6 147.7 147.8 147.9 147.10 147.11 147.12 147.13 147.14 147.15 147.16
147.17 147.18
147.19 147.20 147.21 147.22 147.23 147.24 147.25 147.26 147.27 147.28
147.29 147.30
148.1 148.2
148.3 148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15 148.16 148.17 148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30 148.31 148.32 149.1 149.2 149.3 149.4 149.5 149.6 149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31 149.32 149.33 149.34 150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8 150.9 150.10 150.11 150.12 150.13 150.14 150.15 150.16 150.17
150.18 150.19 150.20 150.21
150.22 150.23 150.24 150.25 150.26 150.27 150.28 150.29 150.30 150.31 150.32 150.33 151.1 151.2 151.3 151.4 151.5 151.6 151.7 151.8 151.9 151.10 151.11 151.12 151.13 151.14 151.15 151.16
151.17 151.18 151.19 151.20
151.21 151.22 151.23 151.24 151.25 151.26 151.27 151.28 151.29 151.30 151.31 151.32 152.1 152.2 152.3 152.4 152.5 152.6 152.7 152.8
152.9 152.10 152.11 152.12
152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22 152.23
152.24 152.25 152.26 152.27
152.28 152.29 152.30 153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17 153.18 153.19 153.20 153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 153.32 153.33 154.1 154.2 154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29 154.30 154.31 155.1 155.2 155.3 155.4
155.5 155.6 155.7 155.8
155.9 155.10 155.11 155.12 155.13 155.14 155.15 155.16 155.17 155.18 155.19 155.20 155.21 155.22 155.23
155.24 155.25 155.26 155.27
155.28 155.29 155.30 155.31 156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 157.1 157.2 157.3 157.4 157.5 157.6 157.7 157.8 157.9 157.10 157.11 157.12 157.13 157.14 157.15 157.16 157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 157.32 158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8 158.9 158.10 158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31 159.1 159.2 159.3 159.4 159.5 159.6 159.7 159.8 159.9 159.10 159.11 159.12
159.13 159.14 159.15 159.16
159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 159.32 160.1 160.2 160.3 160.4 160.5
160.6 160.7 160.8 160.9
160.10 160.11 160.12 160.13 160.14 160.15 160.16
160.17 160.18 160.19 160.20
160.21 160.22 160.23 160.24 160.25 160.26 160.27 160.28 160.29 160.30 160.31 160.32 161.1 161.2 161.3 161.4 161.5 161.6 161.7 161.8 161.9 161.10
161.11 161.12 161.13 161.14
161.15 161.16 161.17 161.18 161.19 161.20
161.21 161.22 161.23 161.24
161.25 161.26 161.27 161.28 161.29 161.30 161.31
162.1 162.2 162.3 162.4
162.5 162.6 162.7 162.8 162.9 162.10
162.11 162.12 162.13 162.14
162.15 162.16 162.17 162.18 162.19
162.20 162.21 162.22 162.23
162.24 162.25 162.26 162.27 162.28 162.29 162.30 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20 163.21 163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31 163.32 163.33 164.1 164.2 164.3 164.4 164.5 164.6 164.7 164.8 164.9 164.10
164.11 164.12 164.13 164.14
164.15 164.16
164.17 164.18 164.19 164.20
164.21 164.22 164.23
164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22 165.23 165.24 165.25 165.26 165.27 165.28
165.29
165.30 165.31 165.32 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18
167.19 167.20 167.21
167.22 167.23 167.24 167.25 167.26 167.27 167.28 167.29 167.30 167.31 167.32 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13
168.14 168.15
168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 168.31 168.32
168.33
169.1 169.2 169.3 169.4 169.5 169.6 169.7 169.8 169.9 169.10 169.11 169.12 169.13 169.14 169.15 169.16
169.17
169.18 169.19
169.20 169.21 169.22 169.23 169.24 169.25
169.26
169.27 169.28 169.29 169.30 170.1 170.2 170.3 170.4 170.5 170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13 170.14 170.15 170.16 170.17 170.18 170.19 170.20 170.21 170.22 170.23 170.24 170.25 170.26 170.27 170.28 170.29 170.30 170.31 170.32 170.33
170.34
171.1 171.2 171.3 171.4 171.5 171.6 171.7 171.8 171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20 171.21 171.22 171.23 171.24 171.25 171.26 171.27 171.28 171.29 171.30
171.31
172.1 172.2 172.3 172.4 172.5
172.6
172.7 172.8
172.9 172.10 172.11 172.12 172.13 172.14 172.15 172.16 172.17 172.18 172.19 172.20 172.21 172.22 172.23
172.24
172.25 172.26 172.27 172.28 172.29 172.30 172.31 173.1 173.2 173.3 173.4 173.5 173.6 173.7 173.8 173.9
173.10
173.11 173.12 173.13 173.14 173.15 173.16 173.17 173.18
173.19
173.20 173.21
173.22 173.23 173.24 173.25 173.26 173.27 173.28 173.29 173.30 173.31 174.1 174.2 174.3 174.4 174.5 174.6 174.7 174.8 174.9 174.10 174.11 174.12 174.13 174.14 174.15 174.16 174.17 174.18 174.19 174.20 174.21 174.22 174.23 174.24 174.25 174.26
174.27
174.28 174.29 174.30 174.31 174.32 175.1 175.2 175.3 175.4 175.5 175.6
175.7
175.8 175.9 175.10 175.11 175.12 175.13 175.14 175.15 175.16
175.17
175.18 175.19 175.20 175.21 175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30 175.31 175.32 175.33 176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8
176.9
176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18 176.19 176.20 176.21 176.22 176.23 176.24 176.25 176.26 176.27 176.28 176.29 176.30 176.31 176.32 176.33 177.1 177.2 177.3 177.4
177.5
177.6 177.7 177.8 177.9 177.10 177.11 177.12 177.13 177.14 177.15 177.16 177.17 177.18 177.19 177.20 177.21 177.22 177.23 177.24 177.25 177.26 177.27 177.28 177.29 177.30 177.31 177.32 177.33 178.1 178.2 178.3 178.4
178.5
178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19
178.20
178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29 178.30 178.31 178.32 178.33 179.1 179.2 179.3
179.4
179.5 179.6 179.7 179.8 179.9 179.10 179.11 179.12 179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21
179.22
179.23 179.24 179.25 179.26 179.27 179.28 179.29 179.30 179.31 180.1 180.2
180.3
180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13
180.14
180.15 180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25
180.26
180.27 180.28 180.29 180.30 180.31 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12
181.13
181.14 181.15 181.16 181.17 181.18 181.19 181.20 181.21 181.22 181.23 181.24 181.25 181.26 181.27 181.28 181.29 181.30 181.31 181.32
181.33
182.1 182.2 182.3 182.4 182.5 182.6 182.7 182.8
182.9
182.10 182.11 182.12 182.13 182.14 182.15 182.16 182.17 182.18 182.19 182.20 182.21 182.22 182.23 182.24 182.25 182.26 182.27 182.28 182.29 182.30 182.31
182.32
183.1 183.2 183.3 183.4 183.5 183.6 183.7 183.8 183.9 183.10
183.11
183.12 183.13 183.14 183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22 183.23 183.24 183.25 183.26 183.27 183.28 183.29 183.30 183.31 183.32 183.33 184.1 184.2 184.3 184.4 184.5 184.6 184.7 184.8 184.9 184.10 184.11 184.12 184.13 184.14 184.15 184.16 184.17 184.18 184.19 184.20 184.21 184.22 184.23 184.24 184.25 184.26 184.27 184.28 184.29 184.30 184.31 184.32 184.33 184.34 184.35 185.1 185.2 185.3 185.4 185.5 185.6 185.7 185.8 185.9 185.10 185.11 185.12 185.13 185.14 185.15 185.16 185.17
185.18
185.19 185.20
185.21
185.22 185.23
185.24 185.25 185.26 185.27 185.28 185.29 185.30
185.31
186.1 186.2 186.3 186.4 186.5 186.6
186.7
186.8 186.9 186.10 186.11 186.12 186.13 186.14 186.15 186.16 186.17 186.18 186.19 186.20 186.21 186.22 186.23 186.24 186.25 186.26 186.27 186.28 186.29 186.30 187.1 187.2 187.3 187.4 187.5 187.6 187.7 187.8 187.9 187.10 187.11 187.12 187.13 187.14 187.15 187.16 187.17
187.18
187.19 187.20 187.21 187.22 187.23 187.24 187.25 187.26 187.27 187.28 187.29 187.30 187.31 187.32 188.1 188.2 188.3 188.4 188.5 188.6 188.7 188.8 188.9 188.10 188.11 188.12 188.13 188.14 188.15 188.16 188.17 188.18 188.19 188.20 188.21 188.22 188.23 188.24 188.25 188.26 188.27 188.28 188.29 188.30 188.31 188.32 188.33 188.34 189.1 189.2 189.3 189.4 189.5 189.6 189.7 189.8 189.9 189.10 189.11 189.12 189.13 189.14 189.15 189.16 189.17 189.18 189.19 189.20 189.21 189.22 189.23 189.24 189.25 189.26 189.27 189.28 189.29 189.30 189.31 189.32 189.33 189.34 189.35 190.1 190.2 190.3 190.4 190.5 190.6 190.7 190.8
190.9
190.10 190.11 190.12 190.13 190.14 190.15 190.16 190.17 190.18 190.19 190.20 190.21 190.22 190.23 190.24 190.25 190.26 190.27 190.28 190.29 190.30 190.31 190.32 191.1 191.2 191.3 191.4 191.5 191.6 191.7 191.8 191.9 191.10 191.11 191.12 191.13 191.14 191.15 191.16 191.17 191.18 191.19 191.20 191.21 191.22 191.23 191.24 191.25 191.26 191.27 191.28 191.29 191.30 191.31 191.32 191.33 192.1 192.2 192.3 192.4 192.5 192.6 192.7 192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19
192.20
192.21 192.22 192.23 192.24 192.25 192.26 192.27 192.28 192.29 192.30
192.31
193.1 193.2 193.3 193.4 193.5 193.6 193.7 193.8 193.9 193.10 193.11 193.12
193.13
193.14 193.15 193.16 193.17 193.18 193.19 193.20 193.21 193.22 193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 193.32 193.33 193.34
194.1
194.2 194.3 194.4 194.5 194.6 194.7 194.8 194.9 194.10 194.11 194.12 194.13
194.14
194.15 194.16 194.17 194.18 194.19 194.20 194.21 194.22 194.23 194.24 194.25 194.26 194.27 194.28 194.29 194.30 195.1 195.2 195.3 195.4 195.5 195.6
195.7
195.8 195.9 195.10 195.11 195.12
195.13
195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22 195.23 195.24 195.25 195.26 195.27 195.28 195.29 196.1 196.2 196.3 196.4 196.5 196.6 196.7 196.8 196.9 196.10 196.11 196.12 196.13 196.14 196.15 196.16 196.17 196.18 196.19 196.20 196.21 196.22 196.23 196.24 196.25 196.26 196.27 196.28 196.29 196.30 197.1 197.2
197.3
197.4 197.5 197.6 197.7 197.8 197.9 197.10 197.11 197.12 197.13 197.14 197.15 197.16 197.17 197.18 197.19 197.20 197.21 197.22 197.23 197.24 197.25 197.26 197.27 197.28 197.29 197.30 198.1 198.2 198.3 198.4 198.5 198.6 198.7 198.8 198.9 198.10 198.11 198.12 198.13 198.14 198.15 198.16 198.17 198.18 198.19 198.20 198.21 198.22 198.23 198.24 198.25 198.26 198.27 198.28 198.29 198.30 198.31 198.32 199.1 199.2 199.3 199.4 199.5 199.6 199.7 199.8 199.9 199.10 199.11 199.12 199.13 199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22
199.23
199.24 199.25 199.26
199.27
200.1 200.2 200.3 200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14 200.15 200.16 200.17 200.18 200.19 200.20 200.21 200.22 200.23 200.24 200.25 200.26 200.27 200.28 200.29 200.30 200.31 200.32 200.33 201.1 201.2 201.3 201.4 201.5 201.6 201.7 201.8 201.9 201.10 201.11 201.12 201.13 201.14
201.15
201.16 201.17 201.18 201.19 201.20 201.21 201.22 201.23 201.24 201.25 201.26 201.27 201.28 201.29 201.30
201.31
202.1 202.2 202.3 202.4 202.5 202.6 202.7 202.8 202.9 202.10 202.11 202.12
202.13
202.14 202.15 202.16 202.17 202.18 202.19 202.20 202.21 202.22 202.23 202.24 202.25 202.26 202.27 202.28
202.29
203.1 203.2 203.3 203.4
203.5
203.6 203.7 203.8 203.9 203.10 203.11 203.12 203.13 203.14 203.15 203.16 203.17 203.18 203.19 203.20 203.21
203.22
203.23 203.24 203.25 203.26
203.27
203.28 203.29 203.30 204.1 204.2 204.3 204.4 204.5 204.6 204.7 204.8 204.9 204.10 204.11 204.12 204.13 204.14 204.15 204.16 204.17 204.18 204.19 204.20 204.21 204.22 204.23 204.24 204.25 204.26 204.27 204.28 204.29 204.30 204.31 204.32 205.1 205.2 205.3 205.4 205.5 205.6 205.7 205.8 205.9
205.10
205.11 205.12 205.13 205.14 205.15 205.16 205.17 205.18 205.19 205.20 205.21 205.22 205.23 205.24 205.25 205.26 205.27 205.28 205.29 205.30 205.31 206.1 206.2 206.3 206.4 206.5 206.6 206.7 206.8 206.9 206.10 206.11 206.12 206.13 206.14 206.15 206.16 206.17 206.18 206.19 206.20 206.21 206.22
206.23
206.24 206.25 206.26 206.27 206.28 206.29 206.30
206.31
207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9 207.10 207.11 207.12
207.13
207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27 207.28 207.29 207.30 208.1 208.2 208.3 208.4 208.5 208.6 208.7 208.8 208.9 208.10 208.11 208.12 208.13 208.14 208.15 208.16 208.17 208.18 208.19 208.20 208.21 208.22 208.23 208.24 208.25 208.26 208.27 208.28 208.29 208.30
208.31
209.1 209.2 209.3 209.4 209.5 209.6 209.7 209.8 209.9 209.10 209.11 209.12 209.13 209.14 209.15 209.16 209.17 209.18 209.19 209.20 209.21 209.22 209.23 209.24 209.25 209.26 209.27 209.28 209.29 209.30 209.31 209.32 210.1 210.2 210.3
210.4
210.5 210.6 210.7 210.8 210.9 210.10 210.11 210.12 210.13 210.14 210.15 210.16 210.17 210.18 210.19 210.20 210.21 210.22 210.23 210.24 210.25 210.26 210.27 210.28 210.29 210.30 210.31 211.1 211.2 211.3
211.4
211.5 211.6
211.7 211.8 211.9
211.10
A bill for an act
relating to financing of state and local government; providing onetime compensation
and school aid; making changes to conform with certain federal tax law changes;
making policy and technical changes to individual income taxes, corporate franchise
taxes, estate taxes, sales and use taxes, property taxes, tobacco taxes, minerals
taxes, local taxes, and other miscellaneous taxes and tax-related provisions;
modifying provisions related to local government aids and credits; appropriating
money; amending Minnesota Statutes 2016, sections 103E.611, subdivision 2;
116J.8737, subdivisions 5, 12; 122A.61, subdivision 1; 138.053; 162.145,
subdivision 3; 197.603, subdivision 2; 270.41, subdivision 3; 270B.08, subdivision
2; 270C.85, subdivision 2; 270C.89, subdivision 2; 270C.91; 272.02, subdivisions
27, 81, by adding a subdivision; 273.032; 273.061, subdivision 9; 273.113,
subdivision 3; 273.119, subdivision 2; 273.1231, subdivision 3; 273.124,
subdivisions 3a, 8, 14, 21, by adding a subdivision; 273.1245, subdivision 2;
273.13, subdivision 35; 273.136, subdivision 2; 273.1384, subdivision 3; 273.18;
274.14; 274.16; 275.025, by adding subdivisions; 282.01, subdivision 6; 287.21,
subdivision 1; 289A.08, subdivisions 1, 6, 7; 289A.20, by adding a subdivision;
289A.25, subdivision 1; 289A.31, subdivision 2; 289A.37, subdivision 6; 289A.38,
subdivision 10; 289A.42; 289A.60, subdivision 24; 290.01, subdivision 29a, by
adding subdivisions; 290.0131, subdivisions 1, 3, 12, 13, by adding subdivisions;
290.0132, subdivisions 1, 7, 20, by adding subdivisions; 290.0133, subdivision 6;
290.0134, by adding subdivisions; 290.0136; 290.032, subdivision 2; 290.05,
subdivision 3; 290.06, subdivisions 1, 2c, 2d; 290.0671, subdivision 7; 290.0672,
subdivision 2; 290.0681, subdivisions 3, 4; 290.0685, subdivision 1, by adding a
subdivision; 290.0802, subdivisions 2, 3; 290.091, subdivision 3; 290.0921,
subdivision 8; 290.0922, subdivision 1; 290.095, subdivision 4; 290.21, subdivision
4, by adding a subdivision; 290.34, by adding subdivisions; 290.92, subdivisions
1, 28; 290A.03, subdivisions 4, 12; 290A.04, subdivisions 2, 2a, 4; 290A.05;
290A.08; 290A.09; 290B.04, subdivision 1; 290B.09, subdivision 1; 291.03,
subdivisions 8, 10; 297A.61, subdivision 18; 297A.67, subdivision 12; 297A.68,
subdivisions 17, 25, 44; 297A.70, subdivisions 3, 7, 16, by adding a subdivision;
297A.71, subdivisions 22, 45, by adding subdivisions; 297A.77, by adding a
subdivision; 297A.84; 297A.85; 297B.01, subdivision 14; 297B.03; 297F.01,
subdivisions 19, 23, by adding a subdivision; 297F.17, subdivision 6; 297G.16,
subdivision 7; 298.225, subdivision 1; 298.28, subdivision 9a; 469.171, subdivision
4; 469.177, subdivision 1; 469.1812, subdivision 1, by adding subdivisions;
469.316, subdivision 1; 469.317; 469.319, subdivision 4; 471.831; 473H.08,
subdivisions 1, 4, by adding a subdivision; 474A.02, subdivision 22b; 475.521,
subdivision 1; 477A.013, subdivision 13; 477A.016; Minnesota Statutes 2017
Supplement, sections 16A.152, subdivision 2; 270A.03, subdivision 5; 270C.445,
subdivision 6; 270C.89, subdivision 1; 272.115, subdivision 1; 273.0755; 273.13,
subdivisions 22, 23, 34; 273.1384, subdivision 2; 273.1387, subdivision 3; 275.025,
subdivision 1; 289A.02, subdivision 7; 289A.12, subdivision 14; 289A.31,
subdivision 1; 289A.35; 289A.37, subdivision 2; 290.01, subdivisions 4a, 19, 31;
290.0131, subdivision 10; 290.0132, subdivisions 21, 26; 290.0133, subdivision
12; 290.0137; 290.05, subdivision 1; 290.067, subdivisions 1, 2b; 290.0671,
subdivision 1; 290.0672, subdivision 1; 290.0674, subdivision 2a; 290.0681,
subdivisions 1, 2; 290.0684, subdivision 2; 290.091, subdivision 2; 290.17,
subdivisions 2, 4; 290.31, subdivision 1; 290A.03, subdivisions 3, 8, 13, 15;
291.005, subdivision 1; 291.03, subdivisions 9, 11; 297A.67, subdivision 6;
297A.70, subdivisions 4, 20; 297A.75, subdivision 1; 297B.01, subdivision 16;
298.17; 298.227; 462D.03, subdivision 2; 462D.06, subdivisions 1, 2; 473.39,
subdivision 6; Laws 1986, chapter 379, sections 1, subdivisions 1, 3; 2, subdivision
1; Laws 1986, chapter 396, section 5, as amended; Laws 1986, chapter 462, section
31, as amended; Laws 2008, chapter 366, article 5, sections 26, as amended; 33,
as amended; Laws 2009, chapter 88, article 2, section 46, subdivisions 1, as
amended, 2, 3, as amended, 4, 5; Laws 2011, First Special Session chapter 7, article
4, section 10, subdivision 3; Laws 2017, First Special Session chapter 1, article 3,
section 32; article 4, section 31; article 8, section 3; article 10, section 4; proposing
coding for new law in Minnesota Statutes, chapters 289A; 290; 469; repealing
Minnesota Statutes 2016, sections 275.29; 289A.38, subdivisions 7, 8, 9; 290.0131,
subdivisions 7, 11; 290.0133, subdivisions 13, 14; 290.067, subdivision 2a;
290.0921, subdivisions 1, 2, 3, 3a, 4, 6; 290.10, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
K-12 EDUCATION
Section 1.
Minnesota Statutes 2017 Supplement, section 16A.152, subdivision 2, is
amended to read:
Subd. 2.
Additional revenues; priority.
(a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of management and budget determines that
there will be a positive unrestricted budgetary general fund balance at the close of the
biennium, the commissioner of management and budget must allocate money to the following
accounts and purposes in priority order:
(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;
(2) the budget reserve account established in subdivision 1a until that account reaches
deleted text begin $1,596,522,000deleted text end new text begin $1,608,364,000new text end ;
(3) the amount necessary to increase the aid payment schedule for school district aids
and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest
tenth of a percent without exceeding the amount available and with any remaining funds
deposited in the budget reserve;new text begin and
new text end
(4) the amount necessary to restore all or a portion of the net aid reductions under section
127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
subdivision 5, by the same amountdeleted text begin ; and
deleted text end
deleted text begin (5) the clean water fund established in section 114D.50 until $22,000,000 has been
transferred into the funddeleted text end .
(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.
(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.
The commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.
deleted text begin
(d) Paragraph (a), clause (5), expires after the entire amount of the transfer has been
made.
deleted text end
Sec. 2.
Minnesota Statutes 2016, section 122A.61, subdivision 1, is amended to read:
Subdivision 1.
Staff development revenue.
new text begin (a) new text end A district is required to reserve an amount
equal to at least two percent of the basic revenue under section 126C.10, subdivision 2, for:
(1) teacher development and evaluation under section 122A.40, subdivision 8, or 122A.41,
subdivision 5;
(2) principal development and evaluation under section 123B.147, subdivision 3;
(3) professional development under section 122A.60; and
(4) in-service education for programs under section 120B.22, subdivision 2.
To the extent extra funds remain, staff development revenue may be used for staff
development plans, including plans for challenging instructional activities and experiences
under section 122A.60, and for curriculum development and programs, other in-service
education, teachers' mentoring under section 122A.70 and evaluation, teachers' workshops,
teacher conferences, the cost of substitute teachers for staff development purposes, preservice
and in-service education for special education professionals and paraprofessionals, and
other related costs for staff development efforts. A district may annually waive the
requirement to reserve their basic revenue under this section if a majority vote of the licensed
teachers in the district and a majority vote of the school board agree to a resolution to waive
the requirement. A district in statutory operating debt is exempt from reserving basic revenue
according to this section. Districts may expend an additional amount of unreserved revenue
for staff development based on their needs.
new text begin
(b) Notwithstanding paragraph (a), for fiscal year 2019 only, a school board may on its
own accord adopt a written resolution waiving the two percent reserve for staff development
or establishing a different percentage reserve.
new text end
Sec. 3. new text begin ONETIME COMPENSATION AND SCHOOL AID.
new text end
new text begin Subdivision 1. new text end
new text begin Temporary reduction. new text end
new text begin
$50,000,000 in fiscal year 2019 is transferred
from the budget reserve under Minnesota Statutes, section 16A.152, subdivision 1a, to the
general fund.
new text end
new text begin Subd. 2. new text end
new text begin School trust lands; appropriation for past activities. new text end
new text begin
$50,000,000 in fiscal
year 2019 is appropriated from the general fund to the commissioner of education for
payment to schools under subdivision 3 for past activities conducted on school trust lands
that did not maximize deposits to the permanent school trust fund as specified under
Minnesota Statutes, section 84.027, subdivision 18, paragraph (b).
new text end
new text begin Subd. 3. new text end
new text begin Student and school safety aid. new text end
new text begin
(a) For fiscal year 2019 only, concurrent with
the September 2018 apportionment from the school endowment fund to each school district
and charter school under Minnesota Statutes, section 127A.33, the commissioner must
distribute student and school safety aid equal to $57.73 times the adjusted average daily
membership for the previous school year.
new text end
new text begin
(b) The state aid received under this section may be used for student and staff safety
activities consistent with Minnesota Statutes, section 126C.44, or for any other school-related
purpose as deemed appropriate by the board.
new text end
Sec. 4. new text begin COMMUNITY SERVICE FUND; FUND TRANSFERS.
new text end
new text begin
(a) On June 30, 2018, and June 30, 2019, upon approval of the commissioner of education
and notwithstanding Minnesota Statutes, section 123B.79, 123B.80, or 124D.20, subdivision
10, a school district may permanently transfer any amount approved by the commissioner
from its community education reserve fund balance to its undesignated general fund.
new text end
new text begin
(b) To the extent practicable, when making the fund transfer under this section, each
school district must abide by its board's fund balance policy, unless the funds are transferred
for an eligible use under Minnesota Statutes, section 124D.18.
new text end
new text begin
(c) A school district requesting a fund transfer under this section must apply for the
transfer in the form and manner specified by the commissioner.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 2
FEDERAL TAX CONFORMITY
Section 1.
Minnesota Statutes 2017 Supplement, section 270A.03, subdivision 5, is
amended to read:
Subd. 5.
Debt.
(a) "Debt" means a legal obligation of a natural person to pay a fixed and
certain amount of money, which equals or exceeds $25 and which is due and payable to a
claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125,
fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and
restitution. A debt may arise under a contractual or statutory obligation, a court order, or
other legal obligation, but need not have been reduced to judgment.
A debt includes any legal obligation of a current recipient of assistance which is based
on overpayment of an assistance grant where that payment is based on a client waiver or
an administrative or judicial finding of an intentional program violation; or where the debt
is owed to a program wherein the debtor is not a client at the time notification is provided
to initiate recovery under this chapter and the debtor is not a current recipient of food support,
transitional child care, or transitional medical assistance.
(b) A debt does not include any legal obligation to pay a claimant agency for medical
care, including hospitalization if the income of the debtor at the time when the medical care
was rendered does not exceed the following amount:
(1) for an unmarried debtor, an income of deleted text begin $12,560deleted text end new text begin $13,180 new text end or less;
(2) for a debtor with one dependent, an income of deleted text begin $16,080deleted text end new text begin $16,878 new text end or less;
(3) for a debtor with two dependents, an income of deleted text begin $19,020deleted text end new text begin $19,959 new text end or less;
(4) for a debtor with three dependents, an income of deleted text begin $21,580deleted text end new text begin $22,643 new text end or less;
(5) for a debtor with four dependents, an income of deleted text begin $22,760deleted text end new text begin $23,887 new text end or less; and
(6) for a debtor with five or more dependents, an income of deleted text begin $23,730deleted text end new text begin $24,900 new text end or less.
For purposes of this paragraph, "debtor" means the individual whose income, together
with the income of the individual's spouse, other than a separated spouse, brings the
individual within the income provisions of this paragraph. For purposes of this paragraph,
a spouse, other than a separated spouse, shall be considered a dependent.
(c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)deleted text begin (B)deleted text end the word deleted text begin "2014"deleted text end new text begin "2017" new text end shall be substituted for the word deleted text begin "1992."
deleted text end deleted text begin For 2016, the commissioner shall then determine the percent change from the 12 months
ending on August 31, 2014, to the 12 months ending on August 31, 2015, and in each
subsequent year, from the 12 months ending on August 31, 2014, to the 12 months ending
on August 31 of the year preceding the taxable year.deleted text end new text begin "2016."new text end The determination of the
commissioner pursuant to this subdivision shall not be considered a "rule" and shall not be
subject to the Administrative Procedure Act contained in chapter 14. The income amount
as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, the amount
is rounded up to the nearest $10 amount.
(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the
dollar amount of the premium authorized under section 256L.15, subdivision 1a.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 2.
Minnesota Statutes 2017 Supplement, section 289A.02, subdivision 7, is amended
to read:
Subd. 7.
Internal Revenue Code.
Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin December
16, 2016deleted text end new text begin March 31, 2018new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 3.
Minnesota Statutes 2016, section 289A.08, subdivision 1, is amended to read:
Subdivision 1.
Generally; individuals.
(a) A taxpayer must file a return for each taxable
year the taxpayer is required to file a return under section 6012 of the Internal Revenue
Codenew text begin or meets the requirements under paragraph (d) to file a returnnew text end , except that:
(1) an individual who is not a Minnesota resident for any part of the year is not required
to file a Minnesota income tax return if the individual's gross income derived from Minnesota
sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the
filing requirements for a single individual who is a full year resident of Minnesota; deleted text begin and
deleted text end
(2) an individual who is a Minnesota resident is not required to file a Minnesota income
tax return if the individual's gross income derived from Minnesota sources as determined
under section 290.17, less the subtractions allowed under section 290.0132, subdivisions
12 and 15, is less than the filing requirements for a single individual who is a full-year
resident of Minnesota.
(b) The decedent's final income tax return, and other income tax returns for prior years
where the decedent had gross income in excess of the minimum amount at which an
individual is required to file and did not file, must be filed by the decedent's personal
representative, if any. If there is no personal representative, the return or returns must be
filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property
of the decedent.
(c) The term "gross income," as it is used in this section, has the same meaning given it
in section 290.01, subdivision 20.
new text begin
(d) The commissioner of revenue shall annually determine the gross income levels at
which individuals are required to file a return for each taxable year based on the amounts
that may be deducted under section 290.0803 and the personal and dependent exemptions
under section 290.0138.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 4.
Minnesota Statutes 2016, section 289A.08, subdivision 7, is amended to read:
Subd. 7.
Composite income tax returns for nonresident partners, shareholders, and
beneficiaries.
(a) The commissioner may allow a partnership with nonresident partners to
file a composite return and to pay the tax on behalf of nonresident partners who have no
other Minnesota source income. This composite return must include the names, addresses,
Social Security numbers, income allocation, and tax liability for the nonresident partners
electing to be covered by the composite return.
(b) The computation of a partner's tax liability must be determined by multiplying the
income allocated to that partner by the highest rate used to determine the tax liability for
individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard
deductions, or personal exemptions are not allowed.
(c) The partnership must submit a request to use this composite return filing method for
nonresident partners. The requesting partnership must file a composite return in the form
prescribed by the commissioner of revenue. The filing of a composite return is considered
a request to use the composite return filing method.
(d) The electing partner must not have any Minnesota source income other than the
income from the partnership and other electing partnerships. If it is determined that the
electing partner has other Minnesota source income, the inclusion of the income and tax
liability for that partner under this provision will not constitute a return to satisfy the
requirements of subdivision 1. The tax paid for the individual as part of the composite return
is allowed as a payment of the tax by the individual on the date on which the composite
return payment was made. If the electing nonresident partner has no other Minnesota source
income, filing of the composite return is a return for purposes of subdivision 1.
(e) This subdivision does not negate the requirement that an individual pay estimated
tax if the individual's liability would exceed the requirements set forth in section 289A.25.
The individual's liability to pay estimated tax is, however, satisfied when the partnership
pays composite estimated tax in the manner prescribed in section 289A.25.
(f) If an electing partner's share of the partnership's gross income from Minnesota sources
is less than the filing requirements for a nonresident under this subdivision, the tax liability
is zero. However, a statement showing the partner's share of gross income must be included
as part of the composite return.
(g) The election provided in this subdivision is only available to a partner who has no
other Minnesota source income and who is either (1) a full-year nonresident individual or
(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the
Internal Revenue Code.
(h) A corporation defined in section 290.9725 and its nonresident shareholders may
make an election under this paragraph. The provisions covering the partnership apply to
the corporation and the provisions applying to the partner apply to the shareholder.
(i) Estates and trusts distributing current income only and the nonresident individual
beneficiaries of the estates or trusts may make an election under this paragraph. The
provisions covering the partnership apply to the estate or trust. The provisions applying to
the partner apply to the beneficiary.
(j) For the purposes of this subdivision, "income" means the partner's share of federal
adjusted gross income from the partnership modified by the additions provided in section
290.0131, subdivisions 8 to deleted text begin 11deleted text end new text begin 10 and 17new text end , and the subtractions provided in: (1) section
290.0132, subdivision 9, to the extent the amount is assignable or allocable to Minnesota
under section 290.17; and (2) section 290.0132, subdivision 14. The subtraction allowed
under section 290.0132, subdivision 9, is only allowed on the composite tax computation
to the extent the electing partner would have been allowed the subtraction.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 5.
Minnesota Statutes 2017 Supplement, section 289A.12, subdivision 14, is amended
to read:
Subd. 14.
Reporting exempt interest and exempt-interest dividends.
(a) A regulated
investment company paying $10 or more in exempt-interest dividends to an individual who
is a resident of Minnesota, or any person receiving $10 or more of exempt interest or
exempt-interest dividends and paying as nominee to an individual who is a resident of
Minnesota, must make a return indicating the amount of the exempt interest or
exempt-interest dividends, the name, address, and Social Security number of the recipient,
and any other information that the commissioner specifies. The return must be provided to
the recipient by February 15 of the year following the year of the payment. The return
provided to the recipient must include a clear statement, in the form prescribed by the
commissioner, that the exempt interest or exempt-interest dividends must be included in
the computation of Minnesota taxable income. By June 1 of each year, the payer must file
a copy of the return with the commissioner.
(b) For purposes of this subdivision, the following definitions apply.
(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section
852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest
dividends that are not required to be added to federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end income under
section 290.0131, subdivision 2, paragraph (b).
(2) "Regulated investment company" means regulated investment company as defined
in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company
as defined in section 851(g) of the Internal Revenue Code.
(3) "Exempt interest" means income on obligations of any state other than Minnesota,
or a political or governmental subdivision, municipality, or governmental agency or
instrumentality of any state other than Minnesota, and exempt from federal income taxes
under the Internal Revenue Code or any other federal statute.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 6.
Minnesota Statutes 2016, section 289A.20, is amended by adding a subdivision to
read:
new text begin Subd. 1a. new text end
new text begin Tax on deferred foreign income; election to pay in installments. new text end
new text begin
(a) A
taxpayer subject to tax under section 290.06, subdivision 1, may elect to pay the net tax
liability on the deferred foreign income in installments in the same percentages of the net
tax liability for each taxable year as provided in section 965(h)(1) of the Internal Revenue
Code. Payment of an installment for a taxable year is due on the due date, determined without
regard to any extensions of time for filing the return, for the tax return for that taxable year.
new text end
new text begin
(b) If an acceleration of payment applies for federal income tax purposes under section
965(h)(3) of the Internal Revenue Code, the unpaid portion of the remaining installments
due under chapter 290 must be paid on the same date as the federal tax is due. Assessment
of deficiencies must be prorated as provided under section 965(h)(4) of the Internal Revenue
Code.
new text end
new text begin
(c) For purposes of determining date and time limits under sections 270C.62, 270C.63,
270C.67, and 270C.68, the date on which an installment is due under paragraph (a), including
any acceleration under paragraph (b), must be treated as the assessment date, due date, or
other date from which the time limit must be determined for that payment.
new text end
new text begin
(d) For purposes of this subdivision, "net tax liability" means the excess of:
new text end
new text begin
(1) the tax liability, determined under chapter 290, for the taxable year in which the
deferred foreign income was includible in federal taxable income; over
new text end
new text begin
(2) the tax liability, determined under chapter 290, for that taxable year computed after
excluding the deferred foreign income under section 965 of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016.
new text end
Sec. 7.
Minnesota Statutes 2017 Supplement, section 289A.35, is amended to read:
289A.35 ASSESSMENTS ON RETURNS.
(a) The commissioner may audit and adjust the taxpayer's computation of new text begin federal adjusted
gross income, new text end federal taxable income, items of federal tax preferences, or federal credit
amounts to make them conform with the provisions of chapter 290 or section 298.01. If a
return has been filed, the commissioner shall enter the liability reported on the return and
may make any audit or investigation that is considered necessary.
(b) Upon petition by a taxpayer, and when the commissioner determines that it is in the
best interest of the state, the commissioner may allow S corporations and partnerships to
receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their
owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must
be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).
(c) A taxpayer may petition the commissioner for the use of the method described in
paragraph (b) after the taxpayer is notified that an audit has been initiated and before an
order of assessment has been issued.
(d) A determination of the commissioner under paragraph (b) to grant or deny the petition
of a taxpayer cannot be appealed to the Tax Court or any other court.
(e) The commissioner may audit and adjust the taxpayer's computation of tax under
chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner
shall notify the estate no later than nine months after the filing date, as provided by section
289A.38, subdivision 2, whether the return is under examination or the return has been
processed as filed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 8.
Minnesota Statutes 2016, section 290.01, is amended by adding a subdivision to
read:
new text begin Subd. 14a. new text end
new text begin Surviving spouse. new text end
new text begin
The term "surviving spouse" means an individual who is
a surviving spouse under section 2(a) of the Internal Revenue Code for the taxable year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 9.
Minnesota Statutes 2017 Supplement, section 290.01, subdivision 19, is amended
to read:
Subd. 19.
Net income.
new text begin (a) For a corporation taxable under section 290.02, and an estate
or a trust taxable under section 290.03, new text end the term "net income" means the federal taxable
income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through
the date named in this subdivision, incorporating the federal effective dates of changes to
the Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in sections 290.0131 to 290.0136.
new text begin
(b) For an individual, the term "net income" means federal adjusted gross income with
the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
new text end
new text begin (c) new text end In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:
(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
and
(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.
new text begin (d) new text end The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
new text begin (e) new text end The net income of a designated settlement fund as defined in section 468B(d) of the
Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
Revenue Code.
new text begin (f) new text end The Internal Revenue Code of 1986, as amended through deleted text begin December 16, 2016deleted text end new text begin March
31, 2018new text end , shall be in effect for taxable years beginning after December 31, 1996.
new text begin (g) new text end Except as otherwise provided, references to the Internal Revenue Code in this
subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of
determining net income for the applicable year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time as
the changes were effective for federal purposes and the changes amending the new paragraph
(a) and adding paragraph (b) are effective for taxable years beginning after December 31,
2017.
new text end
Sec. 10.
Minnesota Statutes 2016, section 290.01, is amended by adding a subdivision to
read:
new text begin Subd. 19i. new text end
new text begin Deferred foreign income. new text end
new text begin
"Deferred foreign income" means the income of
a domestic corporation that is included in net income under section 965 of the Internal
Revenue Code, inclusive of the deduction allowed under section 965(c) of the Internal
Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016.
new text end
Sec. 11.
Minnesota Statutes 2016, section 290.01, is amended by adding a subdivision to
read:
new text begin Subd. 21a. new text end
new text begin Adjusted gross income; federal adjusted gross income. new text end
new text begin
The terms "adjusted
gross income" and "federal adjusted gross income" mean adjusted gross income, as defined
in section 62 of the Internal Revenue Code, as amended through the date named in
subdivision 19, incorporating the federal effective date of changes to the Internal Revenue
Code and any elections made by the taxpayer under the Internal Revenue Code in determining
federal adjusted gross income for federal income tax purposes.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2016, section 290.01, subdivision 29a, is amended to read:
Subd. 29a.
State itemized deduction.
new text begin (a) new text end "State itemized deduction" means federal
itemized deductions, as defined in section 63(d) of the Internal Revenue Code, disregarding
deleted text begin any limitation under section 68 of the Internal Revenue Code, and reduced by the amount
of the addition required under section 290.0131, subdivision 13.deleted text end new text begin :
new text end
new text begin
(1) changes to itemized deductions made by Public Law 115-97, but including the
changes made by sections 11027, 13704, and 13705 of that public law; and
new text end
new text begin
(2) the federal itemized deduction of income or sales taxes under section 164 of the
Internal Revenue Code.
new text end
new text begin
(b) For an individual who is not a resident of this state for the entire taxable year, the
itemized deductions allowable under paragraph (a) are further limited as follows:
new text end
new text begin
(1) the taxes paid deduction under section 164 of the Internal Revenue Code applies
only to real and personal property taxes imposed by this state or its political subdivisions;
new text end
new text begin
(2) the charitable contribution deduction under section 170 of the Internal Revenue Code
does not apply;
new text end
new text begin
(3) the interest deduction under section 163 of the Internal Revenue Code is limited to:
new text end
new text begin
(i) interest paid on loans secured by a mortgage or lien on a residence located in this
state; and
new text end
new text begin
(ii) interest paid or accrued on indebtedness properly allocable to property held for
investment located in this state;
new text end
new text begin
(4) allowable miscellaneous deductions are limited to expenses related to:
new text end
new text begin
(i) the production of income in this state;
new text end
new text begin
(ii) property located in this state; or
new text end
new text begin
(iii) taxes paid to this state or its political subdivisions; and
new text end
new text begin
(5) the deduction for losses under section 165 of the Internal Revenue Code is limited
to losses attributable to property located in this state.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 13.
Minnesota Statutes 2016, section 290.01, is amended by adding a subdivision to
read:
new text begin Subd. 29b. new text end
new text begin State standard deduction. new text end
new text begin
"State standard deduction" means the federal
standard deduction computed under section 63(c) and (f) of the Internal Revenue Code, as
amended through December 16, 2016, except that for purposes of adjusting the amounts
under this subdivision, the provisions of section 1(f) of the Internal Revenue Code, as
amended through March 31, 2018, apply.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 14.
Minnesota Statutes 2017 Supplement, section 290.01, subdivision 31, is amended
to read:
Subd. 31.
Internal Revenue Code.
Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin December
16, 2016deleted text end new text begin March 31, 2018new text end . Internal Revenue Code also includes any uncodified provision
in federal law that relates to provisions of the Internal Revenue Code that are incorporated
into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
amended through March 18, 2010.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to the same taxable years as the changes incorporated by federal changes are effective
for federal purposes, including any provisions that are retroactive to taxable years beginning
after December 31, 2016.
new text end
Sec. 15.
Minnesota Statutes 2016, section 290.0131, subdivision 1, is amended to read:
Subdivision 1.
Definition; scope.
(a) For the purposes of this section, "addition" means
an amount that must be added to federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end incomenew text begin , or for estates and
trusts, federal taxable income,new text end in computing net income for the taxable year to which the
amounts relate.
(b) The additions in this section apply to individuals, estates, and trusts.
(c) Unless specifically indicated or unless the context clearly indicates otherwise, only
amounts that were deducted or excluded in computing federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end incomenew text begin ,
or for estates and trusts, federal taxable income,new text end are an addition under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 16.
Minnesota Statutes 2016, section 290.0131, subdivision 3, is amended to read:
Subd. 3.
Income, sales and use, motor vehicle sales, or excise taxes paid.
deleted text begin (a)deleted text end new text begin For trusts
and estates,new text end the amount of income, sales and use, motor vehicle sales, or excise taxes paid
or accrued within the taxable year under this chapter and the amount of taxes based on net
income, sales and use, motor vehicle sales, or excise taxes paid to any other state or to any
province or territory of Canada is an addition to the extent deducted under section 63(d) of
the Internal Revenue Code.
deleted text begin
(b) The addition under paragraph (a) may not be more than the amount by which the
state itemized deduction exceeds the amount of the standard deduction as defined in section
63(c) of the Internal Revenue Code. For the purpose of this subdivision, income, sales and
use, motor vehicle sales, or excise taxes are the last itemized deductions disallowed under
subdivision 12.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 17.
Minnesota Statutes 2017 Supplement, section 290.0131, subdivision 10, is amended
to read:
Subd. 10.
Section 179 expensing.
new text begin Effective for property placed in service in taxable
years beginning before January 1, 2018, new text end 80 percent of the amount by which the deduction
allowed under the dollar limits of section 179 of the Internal Revenue Code exceeds the
deduction allowable by section 179 of the Internal Revenue Code, as amended through
December 31, 2003, is an addition.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 18.
Minnesota Statutes 2016, section 290.0131, subdivision 12, is amended to read:
Subd. 12.
Disallowed itemized deductions.
(a) The amount of disallowed itemized
deductions is an addition. The amount of disallowed itemized deductionsdeleted text begin , plus the addition
required under subdivision 3,deleted text end may not be more than the amount by which thenew text begin statenew text end itemized
deductionsdeleted text begin , as allowed under section 63(d) of the Internal Revenue Code,deleted text end exceeds the amount
of the new text begin state new text end standard deduction deleted text begin as defined in section 63(c) of the Internal Revenue Codedeleted text end .
(b) The amount of disallowed itemized deductions is equal to the lesser of:
(1) three percent of the excess of the taxpayer's federal adjusted gross income over the
applicable amount; or
(2) 80 percent of the amount of the new text begin state new text end itemized deductions otherwise allowable to the
taxpayer under the Internal Revenue Code for the taxable year.
(c) "Applicable amount" means deleted text begin $100,000deleted text end new text begin $190,050new text end , or deleted text begin $50,000deleted text end new text begin $95,025new text end for a married
individual filing a separate return. Each dollar amount is increased by an amount equal to:
(1) that dollar amount, multiplied by
(2) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue
Code for the calendar year in which the taxable year begins, by substituting deleted text begin "calendar year
1990" for "calendar year 1992" in subparagraph (B) of section 1(f)(3)deleted text end new text begin "2017" for "2016" in
section 1(f)(3) of the Internal Revenue Codenew text end .
(d) "Itemized deductions" excludes:
(1) the deduction for medical expenses under section 213 of the Internal Revenue Code;
(2) any deduction for investment interest as defined in section 163(d) of the Internal
Revenue Code; and
(3) the deduction under section 165(a) of the Internal Revenue Code for casualty or theft
losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue Code or
for losses described in section 165(d) of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 19.
Minnesota Statutes 2016, section 290.0131, subdivision 13, is amended to read:
Subd. 13.
Disallowed personal exemption amount.
(a) The amount of disallowed
personal exemptions for taxpayers with federal adjusted gross income over the threshold
amount is an addition.
(b) The disallowed personal exemption amount is equal to the deleted text begin number ofdeleted text end personal
deleted text begin exemptionsdeleted text end new text begin and dependent exemption subtractionnew text end allowed under section deleted text begin 151(b) and (c) of
the Internal Revenue Codedeleted text end new text begin 290.0132, subdivision 20,new text end multiplied by the deleted text begin dollar amount for
personal exemptions under section 151(d)(1) and (2) of the Internal Revenue Code, as
adjusted for inflation by section 151(d)(4) of the Internal Revenue Code, and by thedeleted text end
applicable percentage.
(c) For a married individual filing a separate return, "applicable percentage" means two
percentage points for each $1,250, or fraction of that amount, by which the taxpayer's federal
adjusted gross income for the taxable year exceeds the threshold amount. For all other filers,
applicable percentage means two percentage points for each $2,500, or fraction of that
amount, by which the taxpayer's federal adjusted gross income for the taxable year exceeds
the threshold amount. The applicable percentage must not exceed 100 percent.
(d) "Threshold amount" means:
(1) deleted text begin $150,000deleted text end new text begin $285,050 new text end for a joint return or a surviving spouse;
(2) deleted text begin $125,000deleted text end new text begin $237,550 new text end for a head of a household;
(3) deleted text begin $100,000deleted text end new text begin $190,050 new text end for an individual who is not married and who is not a surviving
spouse or head of a household; and
(4) deleted text begin $75,000deleted text end new text begin $95,025 new text end for a married individual filing a separate return.
(e) The thresholds must be increased by an amount equal to:
(1) the threshold dollar amount, multiplied by
(2) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue
Code for the calendar year in which the taxable year begins, by substituting deleted text begin "calendar year
1990" for "calendar year 1992" in subparagraph (B) of section 1(f)(3)deleted text end new text begin "2017" for "2016" in
section 1(f)(3) of the Internal Revenue Codenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 20.
Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
to read:
new text begin Subd. 15. new text end
new text begin Qualified business income addition. new text end
new text begin
For a trust or estate, the amount deducted
under section 199A of the Internal Revenue Code in computing the federal taxable income
of the trust or estate is an addition.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 21.
Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
to read:
new text begin Subd. 16. new text end
new text begin Foreign-derived intangible income. new text end
new text begin
The amount of foreign-derived intangible
income deducted under section 250 of the Internal Revenue Code for the taxable year is an
addition.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 22.
Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
to read:
new text begin Subd. 17. new text end
new text begin 529 plan distributions for K-12 expenses. new text end
new text begin
The lesser of the following amounts
is an addition:
new text end
new text begin
(1) the total distributions for the taxable year from a qualified plan under section 529 of
the Internal Revenue Code, owned by the taxpayer, that are expended for qualified higher
education expenses under section 529(c)(7) of the Internal Revenue Code (expenses for
tuition for elementary or secondary public, private, or religious school); or
new text end
new text begin
(2) the total amount required to be reported to the taxpayer by any trustee of a qualified
tuition plan under section 529 of the Internal Revenue Code as earnings on Internal Revenue
Service Form 1099Q for the taxable year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 23.
Minnesota Statutes 2016, section 290.0132, subdivision 1, is amended to read:
Subdivision 1.
Definition; scope.
(a) For the purposes of this section, "subtraction"
means an amount that deleted text begin shalldeleted text end new text begin is allowed tonew text end be subtracted from federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end
incomenew text begin , or for estates and trusts, federal taxable income,new text end in computing net income for the
taxable year to which the amounts relate.
(b) The subtractions in this section apply to individuals, estates, and trusts.
(c) Unless specifically indicated or unless the context clearly indicates otherwise, no
amount deducted, subtracted, or otherwise excluded in computing federal deleted text begin taxabledeleted text end new text begin adjusted
grossnew text end incomenew text begin , or for estates and trusts, federal taxable income,new text end is a subtraction under this
section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 24.
Minnesota Statutes 2016, section 290.0132, subdivision 7, is amended to read:
Subd. 7.
Charitable contributions for taxpayers who do not itemize.
deleted text begin To the extent
not deducted or not deductible under section 408(d)(8)(E) of the Internal Revenue Code in
determining federal taxable income bydeleted text end new text begin Fornew text end deleted text begin andeleted text end new text begin a residentnew text end individual who does not itemize
deductions deleted text begin for federal income tax purposesdeleted text end new text begin under section 290.0803new text end 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 deleted text begin 170(a) of the Internal Revenue Codedeleted text end new text begin
290.0803, subdivision 5,new text end is a subtraction.new text begin The subtraction under this subdivision must not
include a distribution that is excluded from federal adjusted gross income and that is not
deductible under section 408(d)(8)(E) of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 25.
Minnesota Statutes 2016, section 290.0132, subdivision 20, is amended to read:
Subd. 20.
deleted text begin Disalloweddeleted text end Personal new text begin and dependent new text end exemption.
deleted text begin
The amount of the phaseout
of personal exemptions under section 151(d) of the Internal Revenue Code is a subtraction.
deleted text end
new text begin
The amount of personal and dependent exemptions calculated under section 290.0138 is a
subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 26.
Minnesota Statutes 2017 Supplement, section 290.0132, subdivision 21, is amended
to read:
Subd. 21.
Military service pension; retirement pay.
To the extent included in federal
deleted text begin taxabledeleted text end new text begin adjusted grossnew text end income, compensation received from a pension or other retirement
pay from the federal government for service in the military, as computed under United
States Code, title 10, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The
subtraction is limited to individuals who do not claim the credit under section 290.0677.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 27.
Minnesota Statutes 2017 Supplement, section 290.0132, subdivision 26, is amended
to read:
Subd. 26.
Social Security benefits.
(a) A portion of Social Security benefits is allowed
as a subtraction. The subtraction equals the lesser of Social Security benefits or a maximum
subtraction subject to the limits under paragraphs (b), (c), and (d).
(b) For married taxpayers filing a joint return and surviving spouses, the maximum
subtraction equals deleted text begin $4,500deleted text end new text begin $4,590new text end . The maximum subtraction is reduced by 20 percent of
provisional income over deleted text begin $77,000deleted text end new text begin $78,530new text end . In no case is the subtraction less than zero.
(c) For single or head-of-household taxpayers, the maximum subtraction equals deleted text begin $3,500deleted text end new text begin
$3,570new text end . The maximum subtraction is reduced by 20 percent of provisional income over
deleted text begin $60,200deleted text end new text begin $61,400new text end . In no case is the subtraction less than zero.
(d) For married taxpayers filing separate returns, the maximum subtraction equals deleted text begin $2,250deleted text end new text begin
one-half the maximum subtraction for joint returns under paragraph (b)new text end . The maximum
subtraction is reduced by 20 percent of provisional income over deleted text begin $38,500deleted text end new text begin one-half the
maximum subtraction for joint returns under paragraph (b)new text end . In no case is the subtraction
less than zero.
(e) For purposes of this subdivision, "provisional income" means modified adjusted
gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of
the Social Security benefits received during the taxable year, and "Social Security benefits"
has the meaning given in section 86(d)(1) of the Internal Revenue Code.
(f) The commissioner shall adjust the maximum subtraction and threshold amounts in
paragraphs (b) to (d) by the percentage determined pursuant to the provisions of section
1(f) of the Internal Revenue Code, except that in section 1(f)(3)deleted text begin (B)deleted text end of the Internal Revenue
Code the word deleted text begin "2016"deleted text end new text begin "2017"new text end shall be substituted for the word deleted text begin "1992." For 2018, the
commissioner shall then determine the percentage change from the 12 months ending on
August 31, 2016, to the 12 months ending on August 31, 2017, and in each subsequent year,
from the 12 months ending on August 31, 2016, to the 12 months ending on August 31 of
the year preceding the taxable year.deleted text end new text begin "2016." new text end The determination of the commissioner pursuant
to this subdivision must not be considered a rule and is not subject to the Administrative
Procedure Act contained in chapter 14, including section 14.386. The maximum subtraction
and threshold amounts as adjusted must be rounded to the nearest $10 amount. If the amount
ends in $5, the amount is rounded up to the nearest $10 amount.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 28.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 27. new text end
new text begin Moving expenses. new text end
new text begin
Expenses that qualify as a deduction under section 217(a)
through (f) of the Internal Revenue Code, disregarding paragraph (k), are a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 29.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 28. new text end
new text begin Global intangible low-taxed income. new text end
new text begin
The taxpayer's global intangible
low-taxed income included under section 951A of the Internal Revenue Code for the taxable
year is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 30.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 29. new text end
new text begin Deferred foreign income of nonresidents. new text end
new text begin
For a nonresident individual, the
amount of deferred foreign income recognized because of section 965 of the Internal Revenue
Code is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016.
new text end
Sec. 31.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 30. new text end
new text begin Standard or itemized deduction. new text end
new text begin
The amount allowed under section 290.0803
is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 32.
Minnesota Statutes 2016, section 290.0133, subdivision 6, is amended to read:
Subd. 6.
Special deductions.
new text begin (a) new text end The amount of any special deductions under sections
241 to 247 new text begin of the Internal Revenue Code new text end and deleted text begin 965deleted text end new text begin the amount of foreign derived intangible
income deducted under section 250 new text end of the Internal Revenue Code is an addition.
new text begin
(b) The addition under this subdivision is reduced by the amount of the deduction under
section 245A of the Internal Revenue Code that represents amounts included in federal
taxable income in a prior taxable year under section 965 of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016.
new text end
Sec. 33.
Minnesota Statutes 2017 Supplement, section 290.0133, subdivision 12, is amended
to read:
Subd. 12.
Section 179 expensing.
new text begin Effective for property placed in service in taxable
years beginning before January 1, 2018, new text end 80 percent of the amount by which the deduction
allowed under the dollar limits of section 179 of the Internal Revenue Code exceeds the
deduction allowable by section 179 of the Internal Revenue Code, as amended through
December 31, 2003, is an addition.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 34.
Minnesota Statutes 2016, section 290.0134, is amended by adding a subdivision
to read:
new text begin Subd. 17. new text end
new text begin Global intangible low-taxed income. new text end
new text begin
The taxpayer's global intangible
low-taxed income included under section 951A of the Internal Revenue Code for the taxable
year is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 35.
Minnesota Statutes 2016, section 290.0136, is amended to read:
290.0136 CERTAIN PREFERRED STOCK LOSSES.
A taxpayer must compute net income by treating losses from the sale or transfer of
certain preferred stock, which the taxpayer treated as ordinary losses pursuant to Division
A, title III, section 301 of Public Law 110-343, as capital losses. The amount of net income
under section 290.01, subdivision 19; taxable net income under section 290.01, subdivision
22; taxable income under section 290.01, subdivision 29; the numerator and denominator
in section 290.06, subdivision 2c, paragraph (e); individual alternative minimum taxable
income under section 290.091, subdivision 2; deleted text begin corporate alternative minimum taxable income
under section 290.0921, subdivision 3;deleted text end and net operating losses under section 290.095 must
be computed for each taxable year as if those losses had been treated by the taxpayer as
capital losses under the Internal Revenue Code, including the limitations under section 1211
of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 36.
new text begin
[290.0138] PERSONAL AND DEPENDENT EXEMPTIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Personal and dependent exemptions. new text end
new text begin
(a) A taxpayer is allowed (1) a
personal exemption in the amount of $4,150, and in the case of a married couple filing a
joint return an additional personal exemption of $4,150; plus (2) a dependent exemption of
$4,150 multiplied by the number of dependents of the taxpayer, as defined under sections
151 and 152 of the Internal Revenue Code.
new text end
new text begin
(b) The personal and dependent exemptions are not allowed to an individual who is
eligible to be claimed as a dependent, as defined in sections 151 or 152 of the Internal
Revenue Code, by another taxpayer.
new text end
new text begin Subd. 2. new text end
new text begin Cost-of-living adjustment. new text end
new text begin
For taxable years beginning after December 31,
2018, the commissioner shall annually adjust the amounts in subdivision 1 by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue Code as
amended through March 31, 2018. The exemption amount as adjusted for inflation must be
rounded to the nearest $50. If the amount is not a multiple of $50, the commissioner shall
round down to the next lowest multiple of $50. The determination of the commissioner
under this subdivision is not a rule under the Administrative Procedure Act.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 37.
Minnesota Statutes 2016, section 290.032, subdivision 2, is amended to read:
Subd. 2.
Computation.
The amount of tax imposed by subdivision 1 shall be computed
in the same way as the tax imposed under section 402(d) of the Internal Revenue Code of
1986, as amended through December 31, 1995, except that the initial separate tax shall be
an amount equal to five times the tax which would be imposed by section 290.06, subdivision
2c, if the recipient was an unmarried individual, and the taxable net income was an amount
equal to one-fifth of the excess of
(i) the total taxable amount of the lump-sum distribution for the year, over
(ii) the minimum distribution allowance, and except that references in section 402(d) of
the Internal Revenue Code of 1986, as amended through December 31, 1995, to paragraph
(1)(A) thereof shall instead be references to subdivision 1, and the excess, if any, of the
subtraction base amount over deleted text begin federaldeleted text end taxablenew text begin netnew text end income for a qualified individual as provided
under section 290.0802, subdivision 2.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 38.
Minnesota Statutes 2016, section 290.05, subdivision 3, is amended to read:
Subd. 3.
Taxes imposed on exempt entities.
(a) An organization exempt from taxation
under subdivision 2 shall, nevertheless, be subject to tax under this chapter to the extent
provided in the following provisions of the Internal Revenue Code:
(1) section 527 (dealing with political organizations);
(2) section 528 (dealing with certain homeowners associations);
(3) sections 511 to 515 (dealing with unrelated business income);
(4) section 521 (dealing with farmers' cooperatives); and
(5) section 6033(e)(2) (dealing with lobbying expense); but notwithstanding this
subdivision, shall be considered an organization exempt from income tax for the purposes
of any law which refers to organizations exempt from income taxes.
(b) The tax shall be imposed on the taxable income of political organizations or
homeowner associations or the unrelated business taxable income, as defined in section 512
of the Internal Revenue Code, of organizations defined in section 511 of the Internal Revenue
Code, provided that the tax is not imposed on:
(1) advertising revenues from a newspaper published by an organization described in
section 501(c)(4) of the Internal Revenue Code; or
(2) revenues from lawful gambling authorized under chapter 349 that are expended for
purposes that qualify for the deduction for charitable contributions under section 170 of the
Internal Revenue Code, disregarding the limitation under section 170(b)(2), but only to the
extent the contributions are not deductible in computing federal taxable income.
The tax shall be at the corporate rates. The tax shall only be imposed on income and
deductions assignable to this state under sections 290.17 to 290.20. To the extent deducted
in computing federal taxable income, the deductions contained in section 290.21 shall not
be allowed in computing Minnesota taxable net income.
(c) The tax shall be imposed on organizations subject to federal tax under section
6033(e)(2) of the Internal Revenue Code, in an amount equal to the corporate tax rate
multiplied by the amount of lobbying expenses taxed under section 6033(e)(2) which are
attributable to lobbying the Minnesota state government.
new text begin
(d) In calculating unrelated business taxable income under section 512 of the Internal
Revenue Code, the amount of any net operating loss deduction claimed under section 172
of the Internal Revenue Code is an addition. Taxpayers making an addition under this
paragraph may deduct a net operating loss for the taxable year in the same manner as a
corporation under section 290.095, in a form and manner prescribed by the commissioner,
and may calculate the loss without the application of the limitation provided for under
section 512(a)(6) of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 39.
Minnesota Statutes 2016, section 290.06, subdivision 1, is amended to read:
Subdivision 1.
Computation, corporations.
new text begin (a) new text end The franchise tax imposed upon
corporations shall be computed by applying to their taxable income the rate of deleted text begin 9.8deleted text end new text begin 9.1new text end
percent.
new text begin
(b) Notwithstanding paragraph (a), the rate for taxable years beginning after December
31, 2017, and before January 1, 2020, is 9.65 percent.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 40.
Minnesota Statutes 2016, section 290.06, subdivision 2c, is amended to read:
Subd. 2c.
Schedules of rates for individuals, estates, and trusts.
(a) The income taxes
imposed by this chapter upon married individuals filing joint returns and surviving spouses
deleted text begin as defined in section 2(a) of the Internal Revenue Codedeleted text end must be computed by applying to
their taxable net income the following schedule of rates:
(1) On the first deleted text begin $35,480deleted text end new text begin $37,850new text end , deleted text begin 5.35deleted text end new text begin 5.25new text end percent;
(2) On all over deleted text begin $35,480deleted text end new text begin $37,850new text end , but not over deleted text begin $140,960deleted text end new text begin $150,380new text end , deleted text begin 7.05deleted text end new text begin 6.85new text end percent;
(3) On all over deleted text begin $140,960deleted text end new text begin $150,380new text end , but not over deleted text begin $250,000deleted text end new text begin $266,700new text end , 7.85 percent;
(4) On all over deleted text begin $250,000deleted text end new text begin $266,700new text end , 9.85 percent.
Married individuals filing separate returns, estates, and trusts must compute their income
tax by applying the above rates to their taxable income, except that the income brackets
will be one-half of the above amounts.
(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first deleted text begin $24,270deleted text end new text begin $25,890new text end , deleted text begin 5.35deleted text end new text begin 5.25new text end percent;
(2) On all over deleted text begin $24,270deleted text end new text begin $25,890new text end , but not over deleted text begin $79,730deleted text end new text begin $85,060new text end , deleted text begin 7.05deleted text end new text begin 6.85new text end percent;
(3) On all over deleted text begin $79,730deleted text end new text begin $85,060new text end , but not over deleted text begin $150,000deleted text end new text begin $160,020new text end , 7.85 percent;
(4) On all over deleted text begin $150,000deleted text end new text begin $160,020new text end , 9.85 percent.
(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as
a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first deleted text begin $29,880deleted text end new text begin $31,880new text end , deleted text begin 5.35deleted text end new text begin 5.25new text end percent;
(2) On all over deleted text begin $29,880deleted text end new text begin $31,880new text end , but not over deleted text begin $120,070deleted text end new text begin $128,090new text end , deleted text begin 7.05deleted text end new text begin 6.85new text end percent;
(3) On all over deleted text begin $120,070deleted text end new text begin $128,090new text end , but not over deleted text begin $200,000deleted text end new text begin $213,360new text end , 7.85 percent;
(4) On all over deleted text begin $200,000deleted text end new text begin $213,360new text end , 9.85 percent.
(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax
of any individual taxpayer whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not more
than $100. The amount of tax for each bracket shall be computed at the rates set forth in
this subdivision, provided that the commissioner may disregard a fractional part of a dollar
unless it amounts to 50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the entire year must compute the
individual's Minnesota income tax as provided in this subdivision. After the application of
the nonrefundable credits provided in this chapter, the tax liability must then be multiplied
by a fraction in which:
(1) the numerator is the individual's Minnesota source federal adjusted gross income deleted text begin as
defined in section 62 of the Internal Revenue Codedeleted text end and increased by the additions required
under section 290.0131, subdivisions 2 deleted text begin anddeleted text end new text begin ,new text end 6 to deleted text begin 11deleted text end new text begin 10new text end , new text begin 16, and 17, new text end and reduced by the
Minnesota assignable portion of the subtraction for United States government interest under
section 290.0132, subdivision 2, and the subtractions under section 290.0132, subdivisions
9, 10, 14, 15, 17, deleted text begin anddeleted text end 18, new text begin and 27 to 29, new text end after applying the allocation and assignability
provisions of section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted gross income deleted text begin as defined in section
62 of the Internal Revenue Codedeleted text end , increased by the amounts specified in section 290.0131,
subdivisions 2 deleted text begin anddeleted text end new text begin ,new text end 6 to deleted text begin 11deleted text end new text begin 10new text end , new text begin 16, and 17, new text end and reduced by the amounts specified in section
290.0132, subdivisions 2, 9, 10, 14, 15, 17, deleted text begin anddeleted text end 18new text begin , and 27 to 29new text end .
new text begin
(f) For taxable years beginning after December 31, 2017, and before January 1, 2020,
a rate of 5.3 percent applies instead of the 5.25 percent rate in paragraphs (a) to (c), and a
rate of 6.95 percent applies instead of the 6.85 percent rate in paragraphs (a) to (c).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 41.
Minnesota Statutes 2016, section 290.06, subdivision 2d, is amended to read:
Subd. 2d.
Inflation adjustment of brackets.
(a) For taxable years beginning after
December 31, 2013, the minimum and maximum dollar amounts for each rate bracket for
which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage
determined under paragraph (b). deleted text begin For the purpose of making the adjustment as provided in
this subdivision all of the rate brackets provided in subdivision 2c shall be the rate brackets
as they existed for taxable years beginning after December 31, 2012, and before January 1,
2014.deleted text end The rate applicable to any rate bracket must not be changed. The dollar amounts
setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate
brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in
$5, it must be rounded up to the nearest $10 amount.
(b) The commissioner shall adjust the rate brackets and by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section
1(f)(3)deleted text begin (B)deleted text end the word deleted text begin "2012"deleted text end new text begin "2017"new text end shall be substituted for the word deleted text begin "1992." For 2014, the
commissioner shall then determine the percent change from the 12 months ending on August
31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent year, from
the 12 months ending on August 31, 2012, to the 12 months ending on August 31 of the
year preceding the taxable year.deleted text end new text begin "2016."new text end The determination of the commissioner pursuant
to this subdivision shall not be considered a "rule" and shall not be subject to the
Administrative Procedure Act contained in chapter 14.
No later than December 15 of each year, the commissioner shall announce the specific
percentage that will be used to adjust the tax rate brackets.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 42.
Minnesota Statutes 2017 Supplement, section 290.067, subdivision 1, is amended
to read:
Subdivision 1.
Amount of credit.
(a) A taxpayer may take as a credit against the tax
due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
dependent care credit for which the taxpayer is eligible pursuant to the provisions of section
21 of the Internal Revenue Code except that in determining whether the child qualified as
a dependent, income received as a Minnesota family investment program grant or allowance
to or on behalf of the child must not be taken into account in determining whether the child
received more than half of the child's support from the taxpayer, and the provisions of
section 32(b)(1)(D) of the Internal Revenue Code do not apply.
(b) If a child who has not attained the age of six years at the close of the taxable year is
cared for at a licensed family day care home operated by the child's parent, the taxpayer is
deemed to have paid employment-related expenses. If the child is 16 months old or younger
at the close of the taxable year, the amount of expenses deemed to have been paid equals
the maximum limit for one qualified individual under section 21(c) and (d) of the Internal
Revenue Code. If the child is older than 16 months of age but has not attained the age of
six years at the close of the taxable year, the amount of expenses deemed to have been paid
equals the amount the licensee would charge for the care of a child of the same age for the
same number of hours of care.
(c) If a married couple:
(1) has a child who has not attained the age of one year at the close of the taxable year;
(2) files a joint tax return for the taxable year; and
(3) does not participate in a dependent care assistance program as defined in section 129
of the Internal Revenue Code, in lieu of the actual employment related expenses paid for
that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i)
the combined earned income of the couple or (ii) the amount of the maximum limit for one
qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed
to be the employment related expense paid for that child. The earned income limitation of
section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These
deemed amounts apply regardless of whether any employment-related expenses have been
paid.
(d) If the taxpayer is not required and does not file a federal individual income tax return
for the tax year, no credit is allowed for any amount paid to any person unless:
(1) the name, address, and taxpayer identification number of the person are included on
the return claiming the credit; or
(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue
Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name
and address of the person are included on the return claiming the credit.
In the case of a failure to provide the information required under the preceding sentence,
the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence
in attempting to provide the information required.
(e) In the case of a nonresident, part-year resident, or a person who has earned income
not subject to tax under this chapter including earned income excluded pursuant to section
290.0132, subdivision 10, the credit determined under section 21 of the Internal Revenue
Code must be allocated based on the ratio by which the earned income of the claimant and
the claimant's spouse from Minnesota sources bears to the total earned income of the claimant
and the claimant's spouse.
(f) For residents of Minnesota, the subtractions for military pay under section 290.0132,
subdivisions 11 and 12, are not considered "earned income not subject to tax under this
chapter."
(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the
Internal Revenue Code is not considered "earned income not subject to tax under this
chapter."
(h) For taxpayers with federal adjusted gross income in excess of deleted text begin $50,000deleted text end new text begin $50,990new text end , the
credit is equal to the lesser of the credit otherwise calculated under this subdivision, or the
amount equal to $600 minus five percent of federal adjusted gross income in excess of
deleted text begin $50,000deleted text end new text begin $50,990new text end for taxpayers with one qualified individual, or $1,200 minus five percent
of federal adjusted gross income in excess of deleted text begin $50,000deleted text end new text begin $50,990new text end for taxpayers with two or
more qualified individuals, but in no case is the credit less than zero.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 43.
Minnesota Statutes 2017 Supplement, section 290.067, subdivision 2b, is amended
to read:
Subd. 2b.
Inflation adjustment.
The commissioner shall adjust the dollar amount of
the income threshold at which the maximum credit begins to be reduced under subdivision
1 by the percentage determined pursuant to the provisions of section 1(f) of the Internal
Revenue Code, except that in section 1(f)(3)deleted text begin (B)deleted text end the word deleted text begin "2016"deleted text end new text begin "2017"new text end shall be substituted
for the word deleted text begin "1992." For 2018, the commissioner shall then determine the percent change
from the 12 months ending on August 31, 2016, to the 12 months ending on August 31,
2017, and in each subsequent year, from the 12 months ending on August 31, 2016, to the
12 months ending on August 31 of the year preceding the taxable year.deleted text end new text begin "2016."new text end The
determination of the commissioner pursuant to this subdivision must not be considered a
"rule" and is not subject to the Administrative Procedure Act contained in chapter 14. The
threshold amount as adjusted must be rounded to the nearest $10 amount. If the amount
ends in $5, the amount is rounded up to the nearest $10 amount.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 44.
Minnesota Statutes 2017 Supplement, section 290.0671, subdivision 1, is amended
to read:
Subdivision 1.
Credit allowed.
(a) An individual who is a resident of Minnesota 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, except that a taxpayer with no qualifying children who has attained
the age of 21, but not attained age 65 before the close of the taxable year and is otherwise
eligible for a credit under section 32 of the Internal Revenue Code may also receive a credit.
(b) For individuals with no qualifying children, the credit equals 2.10 percent of the first
deleted text begin $6,180deleted text end new text begin $6,480new text end of earned income. The credit is reduced by 2.01 percent of earned income
or adjusted gross income, whichever is greater, in excess of deleted text begin $8,130deleted text end new text begin $8,530new text end , but in no case
is the credit less than zero.
(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first
deleted text begin $11,120deleted text end new text begin $11,670new text end of earned income. The credit is reduced by 6.02 percent of earned income
or adjusted gross income, whichever is greater, in excess of deleted text begin $21,190deleted text end new text begin $22,340new text end , but in no case
is the credit less than zero.
(d) For individuals with two or more qualifying children, the credit equals 11 percent
of the first deleted text begin $18,240deleted text end new text begin $19,130 new text end of earned income. The credit is reduced by 10.82 percent of
earned income or adjusted gross income, whichever is greater, in excess of deleted text begin $25,130deleted text end new text begin $26,360new text end ,
but in no case is the credit less than zero.
(e) For a part-year resident, the credit must be allocated based on the percentage calculated
under section 290.06, subdivision 2c, paragraph (e).
(f) For a person who was a resident for the entire tax year and has earned income not
subject to tax under this chapter, including income excluded under section 290.0132,
subdivision 10, 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 following clauses are not
considered "earned income not subject to tax under this chapter":
(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;
(2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and
(3) income derived from an Indian reservation by an enrolled member of the reservation
while living on the reservation.
(g) For tax years beginning after December 31, deleted text begin 2013deleted text end new text begin 2018new text end , the deleted text begin $8,130deleted text end new text begin $8,530new text end in paragraph
(b), the deleted text begin $21,190deleted text end new text begin $22,340new text end in paragraph (c), and the deleted text begin $25,130deleted text end new text begin $26,360new text end in paragraph (d), after
being adjusted for inflation under subdivision 7, are each increased by deleted text begin $5,000deleted text end new text begin $5,700 new text end for
married taxpayers filing joint returns. For tax years beginning after December 31, deleted text begin 2013deleted text end new text begin
2018new text end , the commissioner shall annually adjust the deleted text begin $5,000deleted text end new text begin $5,700new text end by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section
1(f)(3)deleted text begin (B)deleted text end , the word deleted text begin "2008"deleted text end new text begin "2017"new text end shall be substituted for the word deleted text begin "1992." For 2014, the
commissioner shall then determine the percent change from the 12 months ending on August
31, 2008, to the 12 months ending on August 31, 2013, and in each subsequent year, from
the 12 months ending on August 31, 2008, to the 12 months ending on August 31 of the
year preceding the taxable year.deleted text end new text begin "2016."new text end The earned income thresholds as adjusted for
inflation must be rounded to the nearest $10. If the amount ends in $5, the amount is rounded
up to the nearest $10. The determination of the commissioner under this subdivision is not
a rule under the Administrative Procedure Act.
(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.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 45.
Minnesota Statutes 2016, section 290.0671, subdivision 7, is amended to read:
Subd. 7.
Inflation adjustment.
The earned income amounts used to calculate the credit
and the income thresholds at which the maximum credit begins to be reduced in subdivision
1 must be adjusted for inflation. The commissioner shall adjust by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section
1(f)(3)deleted text begin (B)deleted text end the word deleted text begin "2013"deleted text end new text begin "2017"new text end shall be substituted for the word deleted text begin "1992." For 2015, the
commissioner shall then determine the percent change from the 12 months ending on August
31, 2013, to the 12 months ending on August 31, 2014, and in each subsequent year, from
the 12 months ending on August 31, 2013, to the 12 months ending on August 31 of the
year preceding the taxable year.deleted text end new text begin "2016."new text end The earned income thresholds as adjusted for
inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount
is rounded up to the nearest $10 amount. The determination of the commissioner under this
subdivision is not a rule under the Administrative Procedure Act.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 46.
Minnesota Statutes 2017 Supplement, section 290.0672, subdivision 1, is amended
to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Long-term care insurance" means a policy that:
(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding
the adjusted gross income test; or meets the requirements given in section 62A.46; or provides
similar coverage issued under the laws of another jurisdiction; and
(2) has a lifetime long-term care benefit limit of not less than $100,000; and
(3) has been offered in compliance with the inflation protection requirements of section
62S.23.
(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
(d) "Premiums deducted in determining deleted text begin federaldeleted text end taxablenew text begin netnew text end income" means the lesser of
(1) long-term care insurance premiums that qualify as deductions under section 213 of the
Internal Revenue Code; and (2) the total amount deductible for medical deleted text begin caredeleted text end new text begin expensesnew text end under
section 213 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 47.
Minnesota Statutes 2016, section 290.0672, subdivision 2, is amended to read:
Subd. 2.
Credit.
A taxpayer is allowed a credit against the tax imposed by this chapter
for long-term care insurance policy premiums paid during the tax year. The credit for each
policy equals 25 percent of premiums paid to the extent not deducted in determining deleted text begin federaldeleted text end
taxablenew text begin netnew text end income. A taxpayer may claim a credit for only one policy for each qualified
beneficiary. A maximum of $100 applies to each qualified beneficiary. The maximum total
credit allowed per year is $200 for married couples filing joint returns and $100 for all other
filers. For a nonresident or part-year resident, the credit determined under this section must
be allocated based on the percentage calculated under section 290.06, subdivision 2c,
paragraph (e).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 48.
Minnesota Statutes 2017 Supplement, section 290.0674, subdivision 2a, is amended
to read:
Subd. 2a.
Income.
(a) For purposes of this section, "income" means the sum of the
following:
(1) federal adjusted gross income as defined in section 62 of the Internal Revenue Code;
and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code;
(xii) nontaxable scholarship or fellowship grants;
(xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code;
(xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
(xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; deleted text begin and
deleted text end
(xvi) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Codedeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(xvii) alimony received to the extent not included in the recipient's income.
new text end
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" means federal adjusted gross income reflected in the
fiscal year ending in the next calendar year. Federal adjusted gross income may not be
reduced by the amount of a net operating loss carryback or carryforward or a capital loss
carryback or carryforward allowed for the year.
(b) "Income" does not include:
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(2) amounts of any pension or annuity that were exclusively funded by the claimant or
spouse if the funding payments were not excluded from federal adjusted gross income in
the years when the payments were made;
(3) surplus food or other relief in kind supplied by a governmental agency;
(4) relief granted under chapter 290A;
(5) child support payments received under a temporary or final decree of dissolution or
legal separation; and
(6) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 49.
Minnesota Statutes 2017 Supplement, section 290.0681, subdivision 1, is amended
to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Account" means the historic credit administration account in the special revenue
fund.
(c) "Office" means the State Historic Preservation Office of the Department of
Administration.
(d) "Project" means rehabilitation of a certified historic structure, as defined in section
47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is allowed a
federal credit.
(e) "Federal credit" means the credit allowed under section deleted text begin 47(a)(2)deleted text end new text begin 47(a)new text end of the Internal
Revenue Codenew text begin , except that the amount allowed is deemed to be allocated in the taxable year
that the project is placed in servicenew text end .
(f) "Placed in service" has the meaning used in section 47 of the Internal Revenue Code.
(g) "Qualified rehabilitation expenditures" has the meaning given in section 47 of the
Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for allocation certificates
submitted after December 31, 2017.
new text end
Sec. 50.
Minnesota Statutes 2017 Supplement, section 290.0681, subdivision 2, is amended
to read:
Subd. 2.
Credit or grant allowed; certified historic structure.
(a) A credit is allowed
against the tax imposed under this chapter equal to not more than 100 percent of the credit
allowed under section deleted text begin 47(a)(2)deleted text end new text begin 47(a)new text end of the Internal Revenue Code for a project. new text begin The credit
is payable in an amount equal to one-fifth of the total credit amount allowed in the five
taxable years beginning with the year the project is placed in service. new text end To qualify for the
credit:
(1) the project must receive Part 3 certification and be placed in service during the taxable
year; and
(2) the taxpayer must be allowed the federal credit and be issued a credit certificate for
the taxable year as provided in subdivision 4.
(b) The commissioner of administration may pay a grant in lieu of the credit. The grant
equals 90 percent of the credit that would be allowed for the project.new text begin The grant is payable
in an amount equal to one-fifth of 90 percent of the credit that would be allowed for the
project in the five taxable years beginning with the year the project is placed in service.
new text end
(c) In lieu of the credit under paragraph (a), an insurance company may claim a credit
against the insurance premiums tax imposed under chapter 297I.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for allocation certificates
submitted after December 31, 2017.
new text end
Sec. 51.
Minnesota Statutes 2016, section 290.0681, subdivision 3, is amended to read:
Subd. 3.
Applications; allocations.
(a) To qualify for a credit or grant under this section,
the developer of a project must apply to the office before the rehabilitation begins. The
application must contain the information and be in the form prescribed by the office. The
office may collect a fee for application of up to 0.5 percent of qualified rehabilitation
expenditures, up to $40,000, based on estimated qualified rehabilitation expenditures, to
offset costs associated with personnel and administrative expenses related to administering
the credit and preparing the economic impact report in subdivision 9. Application fees are
deposited in the account. The application must indicate if the application is for a credit or
a grant in lieu of the credit or a combination of the two and designate the taxpayer qualifying
for the credit or the recipient of the grant.
(b) Upon approving an application for credit, the office shall issue allocation certificates
that:
(1) verify eligibility for the credit or grant;
(2) state the amount of credit or grant anticipated with the project, with the credit amount
equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated
in the application;
(3) state that the credit or grant allowed may increase or decrease if the federal credit
the project receives at the time it is placed in service is different than the amount anticipated
at the time the allocation certificate is issued; and
(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or
grant recipient is entitled to receive new text begin one-fifth of the total amount of either new text end the credit or new text begin the
new text end grant at the time the project is placed in service, provided that date is within three calendar
years following the issuance of the allocation certificate.
(c) The office, in consultation with the commissioner, shall determine if the project is
eligible for a credit or a grant under this section and must notify the developer in writing
of its determination. Eligibility for the credit is subject to review and audit by the
commissioner.
(d) The federal credit recapture and repayment requirements under section 50 of the
Internal Revenue Code do not apply to the credit allowed under this section.
(e) Any decision of the office under paragraph (c) may be challenged as a contested case
under chapter 14. The contested case proceeding must be initiated within 45 days of the
date of written notification by the office.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for allocation certificates
submitted after December 31, 2017.
new text end
Sec. 52.
Minnesota Statutes 2016, section 290.0681, subdivision 4, is amended to read:
Subd. 4.
Credit certificates; grants.
(a)(1) The developer of a project for which the
office has issued an allocation certificate must notify the office when the project is placed
in service. Upon verifying that the project has been placed in service, and was allowed a
federal credit, the office must issue a credit certificate to the taxpayer designated in the
application or must issue a grant to the recipient designated in the application. The credit
certificate must state the amount of the credit.
(2) The credit amount equals the federal credit allowed for the project.
(3) The grant amount equals 90 percent of the federal credit allowed for the project.
(b) The recipient of a credit certificate may assign the certificate to another taxpayernew text begin
before the first one-fifth payment is claimednew text end , which is then allowed the credit under this
section or section 297I.20, subdivision 3. An assignment is not valid unless the assignee
notifies the commissioner within 30 days of the date that the assignment is made. The
commissioner shall prescribe the forms necessary for notifying the commissioner of the
assignment of a credit certificate and for claiming a credit by assignment.
(c) Credits passed through to partners, members, shareholders, or owners pursuant to
subdivision 5 are not an assignment of a credit certificate under this subdivision.
(d) A grant agreement between the office and the recipient of a grant may allow the
grant to be issued to another individual or entity.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for allocation certificates
submitted after December 31, 2017.
new text end
Sec. 53.
Minnesota Statutes 2017 Supplement, section 290.0684, subdivision 2, is amended
to read:
Subd. 2.
Credit allowed.
(a) An individual who is a resident of Minnesota is allowed a
credit against the tax imposed by this chapter. The credit is not allowed to an individual
who is eligible to be claimed as a dependent, as defined in sections 151 and 152 of the
Internal Revenue Code. The credit may not exceed the liability for tax under this chapter.
(b) The amount of the credit allowed equals 50 percent of contributions for the taxable
year. The maximum credit is $500, subject to the phaseout in paragraphs (c) and (d). In no
case is the credit less than zero.
(c) For individual filers, the maximum credit is reduced by two percent of adjusted gross
income in excess of deleted text begin $75,000deleted text end new text begin $76,490new text end .
(d) For married couples filing a joint return, the maximum credit is phased out as follows:
(1) for married couples with adjusted gross income in excess of deleted text begin $75,000deleted text end new text begin $76,490new text end , but
not more than deleted text begin $100,000deleted text end new text begin $101,990new text end , the maximum credit is reduced by one percent of adjusted
gross income in excess of deleted text begin $75,000deleted text end new text begin $76,490new text end ;
(2) for married couples with adjusted gross income in excess of deleted text begin $100,000deleted text end new text begin $101,990new text end , but
not more than deleted text begin $135,000deleted text end new text begin $137,680new text end , the maximum credit is $250; and
(3) for married couples with adjusted gross income in excess of deleted text begin $135,000deleted text end new text begin $137,680new text end , the
maximum credit is $250, reduced by one percent of adjusted gross income in excess of
deleted text begin $135,000deleted text end new text begin $137,680new text end .
(e) The income thresholds in paragraphs (c) and (d) used to calculate the maximum
credit must be adjusted for inflation. The commissioner shall adjust the income thresholds
by the percentage determined under the provisions of section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)deleted text begin (B)deleted text end the word deleted text begin "2016"deleted text end new text begin "2017"new text end is substituted for the word
deleted text begin "1992." For 2018, the commissioner shall then determine the percent change from the 12
months ending on August 31, 2016, to the 12 months ending on August 31, 2017, and in
each subsequent year, from the 12 months ending on August 31, 2016, to the 12 months
ending on August 31 of the year preceding the taxable year.deleted text end new text begin "2016."new text end The income thresholds
as adjusted for inflation must be rounded to the nearest $10 amount. If the amount ends in
$5, the amount is rounded up to the nearest $10 amount. The determination of the
commissioner under this subdivision is not subject to chapter 14, including section 14.386.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 54.
Minnesota Statutes 2016, section 290.0802, subdivision 2, is amended to read:
Subd. 2.
Subtraction.
(a) A qualified individual is allowed a subtraction from federal
deleted text begin taxabledeleted text end new text begin adjusted grossnew text end income of the individual's subtraction base amount. The excess of
the subtraction base amount over the taxable net income computed without regard to the
subtraction for the elderly or disabled under section 290.0132, subdivision 5, may be used
to reduce the amount of a lump sum distribution subject to tax under section 290.032.
(b)(1) The initial subtraction base amount equals
(i) $12,000 for a married taxpayer filing a joint return if a spouse is a qualified individual,
(ii) $9,600 for a single taxpayer, and
(iii) $6,000 for a married taxpayer filing a separate federal return.
(2) The qualified individual's initial subtraction base amount, then, must be reduced by
the sum of nontaxable retirement and disability benefits and one-half of the amount of
adjusted gross income in excess of the following thresholds:
(i) $18,000 for a married taxpayer filing a joint return if both spouses are qualified
individuals,
(ii) $14,500 for a single taxpayer or for a married couple filing a joint return if only one
spouse is a qualified individual, and
(iii) $9,000 for a married taxpayer filing a separate federal return.
(3) In the case of a qualified individual who is under the age of 65, the maximum amount
of the subtraction base may not exceed the taxpayer's disability income.
(4) The resulting amount is the subtraction base amount.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 55.
new text begin
[290.0803] STANDARD OR ITEMIZED DEDUCTION.
new text end
new text begin Subdivision 1. new text end
new text begin Election. new text end
new text begin
An individual may elect to claim a state standard deduction in
lieu of state itemized deductions. In the case of a married individual filing a separate return,
if one spouse elects to claim state itemized deductions, the other spouse is not allowed a
state standard deduction.
new text end
new text begin Subd. 2. new text end
new text begin Subtraction. new text end
new text begin
Based on the election under subdivision 1, individuals are allowed
to subtract from federal adjusted gross income the state standard deduction or the state
itemized deduction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 56.
Minnesota Statutes 2017 Supplement, section 290.091, subdivision 2, is amended
to read:
Subd. 2.
Definitions.
For purposes of the tax imposed by this section, the following
terms have the meanings given.
(a) "Alternative minimum taxable income" means the sum of the following for the taxable
year:
(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
taxable income, but excluding:
(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;new text begin
and
new text end
(ii) the medical expense deduction;
(iii) the casualty, theft, and disaster loss deduction; and
(iv) the impairment-related work expenses of a disabled person;
(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2; and
(6) the amount of addition required by section 290.0131, subdivisions 9 deleted text begin to 11deleted text end new text begin , 10, 16,
and 17new text end ;
new text begin
(7) the deduction allowed under section 199A of the Internal Revenue Code;
new text end
less the sum of the amounts determined under the following:
(i) interest income as defined in section 290.0132, subdivision 2;
(ii) an overpayment of state income tax as provided by section 290.0132, subdivision
3, to the extent included in federal alternative minimum taxable income;
(iii) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing federal adjusted gross income;
(iv) amounts subtracted from federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end income as provided by
section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, deleted text begin anddeleted text end 26new text begin to 29, and 31new text end ; deleted text begin and
deleted text end
(v) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c)new text begin ; and
new text end
new text begin (vi) the amount which would have been an allowable deduction under section 165(h) of
the Internal Revenue Code, as amended through December 16, 2016, and which was taken
as a Minnesota itemized deduction under section 290.01, subdivision 29new text end .
In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Codenew text begin , except that alternative minimum
taxable income must be increased by the amount of the addition under section 290.0131,
subdivision 15new text end .
(b) "Investment interest" means investment interest as defined in section 163(d)(3) of
the Internal Revenue Code.
(c) "Net minimum tax" means the minimum tax imposed by this section.
(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
under this chapter.
(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 57.
Minnesota Statutes 2016, section 290.091, subdivision 3, is amended to read:
Subd. 3.
Exemption amount.
(a) For purposes of computing the alternative minimum
tax, the exemption amount isdeleted text begin , for taxable years beginning after December 31, 2005, $60,000deleted text end new text begin
$75,760new text end for married couples filing joint returns, deleted text begin $30,000deleted text end new text begin $37,880new text end for married individuals
filing separate returns, estates, and trusts, and deleted text begin $45,000deleted text end new text begin $56,820new text end for unmarried individuals.
(b) The exemption amount determined under this subdivision is subject to the phase out
under section deleted text begin 55(d)(3)deleted text end new text begin 55(d)(2)new text end of the Internal Revenue Code, except that alternative
minimum taxable income as determined under this section must be substituted in the
computation of the phase out.
(c) For taxable years beginning after December 31, deleted text begin 2006deleted text end new text begin 2018new text end , the exemption amount
under paragraph (a) must be adjusted for inflation. The commissioner shall adjust the
exemption amount by the percentage determined pursuant to the provisions of section 1(f)
of the Internal Revenue Code, except that in section 1(f)(3)deleted text begin (B)deleted text end the word deleted text begin "2005"deleted text end new text begin "2017"new text end
shall be substituted for the word deleted text begin "1992." For 2007, the commissioner shall then determine
the percent change from the 12 months ending on August 31, 2005, to the 12 months ending
on August 31, 2006, and in each subsequent year, from the 12 months ending on August
31, 2005, to the 12 months ending on August 31 of the year preceding the taxable year.deleted text end new text begin
"2016."new text end The exemption amount as adjusted must be rounded to the nearest $10. If the amount
ends in $5, it must be rounded up to the nearest $10 amount. The determination of the
commissioner under this subdivision is not a rule under the Administrative Procedure Act.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 58.
Minnesota Statutes 2016, section 290.0921, subdivision 8, is amended to read:
Subd. 8.
Carryover credit.
(a) A corporation is allowed a credit against qualified regular
tax for qualified alternative minimum tax previously paid. The credit is allowable only deleted text begin if
the corporation has no tax liability under this section for the taxable year anddeleted text end if the
corporation has an alternative minimum tax credit carryover from a previous year. The
credit allowable in a taxable year equals the lesser of
(1) deleted text begin the excess ofdeleted text end the qualified regular tax for the taxable year deleted text begin over the amount computed
under subdivision 1, clause (1), for the taxable yeardeleted text end new text begin ;new text end or
(2) the carryover credit to the taxable year.
(b) For purposes of this subdivision, the following terms have the meanings given.
(1) "Qualified alternative minimum tax" equals the amount determined under subdivision
1 for deleted text begin thedeleted text end new text begin anew text end taxable yearnew text begin beginning before December 31, 2017new text end .
(2) "Qualified regular tax" means the tax imposed under section 290.06, subdivision 1.
(c) The qualified alternative minimum tax for a taxable year is an alternative minimum
tax credit carryover to each of the taxable years succeeding the taxable year. The entire
amount of the credit must be carried to the earliest taxable year to which the amount may
be carried. Any unused portion of the credit must be carried to the following taxable year.
No credit may be carried to a taxable year in which alternative minimum tax was paid.
(d) An acquiring corporation may carry over this credit from a transferor or distributor
corporation in a corporate acquisition. The provisions of section 381 of the Internal Revenue
Code apply in determining the amount of the carryover, if any.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 59.
Minnesota Statutes 2016, section 290.0922, subdivision 1, is amended to read:
Subdivision 1.
Imposition.
(a) In addition to the tax imposed by this chapter without
regard to this section, the franchise tax imposed on a corporation required to file under
section 289A.08, subdivision 3, other than a corporation treated as an "S" corporation under
section 290.9725 for the taxable year includes a tax equal to the following amounts:
| If the sum of the corporation's Minnesota property, payrolls, and sales or receipts is: |
the tax equals: |
||||||||
| less than |
$ |
deleted text begin
930,000 deleted text end new text begin 990,000 new text end |
$ |
0 |
|||||
| $ |
deleted text begin
930,000 deleted text end new text begin 990,000 new text end |
to |
$ |
deleted text begin
1,869,999 deleted text end new text begin 1,989,999 new text end |
$ |
deleted text begin
190 deleted text end new text begin 200 new text end |
|||
| $ |
deleted text begin
1,870,000 deleted text end new text begin 1,990,000 new text end |
to |
$ |
deleted text begin
9,339,999 deleted text end new text begin 9,959,999 new text end |
$ |
deleted text begin
560 deleted text end new text begin 600 new text end |
|||
| $ |
deleted text begin
9,340,000 deleted text end new text begin 9,960,000 new text end |
to |
$ |
deleted text begin
18,679,999 deleted text end new text begin 19,929,999 new text end |
$ |
deleted text begin
1,870 deleted text end new text begin 1,990 new text end |
|||
| $ |
deleted text begin
18,680,000 deleted text end new text begin 19,930,000 new text end |
to |
$ |
deleted text begin
37,359,999 deleted text end new text begin 39,859,999 new text end |
$ |
deleted text begin
3,740 deleted text end new text begin 3,990 new text end |
|||
| $ |
deleted text begin
37,360,000 deleted text end new text begin 39,860,000 new text end |
or |
more |
$ |
deleted text begin
9,340 deleted text end new text begin 9,960 new text end |
||||
(b) A tax is imposed for each taxable year on a corporation required to file a return under
section 289A.12, subdivision 3, that is treated as an "S" corporation under section 290.9725
and on a partnership required to file a return under section 289A.12, subdivision 3, other
than a partnership that derives over 80 percent of its income from farming. The tax imposed
under this paragraph is due on or before the due date of the return for the taxpayer due under
section 289A.18, subdivision 1. The commissioner shall prescribe the return to be used for
payment of this tax. The tax under this paragraph is equal to the following amounts:
| If the sum of the S corporation's or partnership's Minnesota property, payrolls, and sales or receipts is: |
the tax equals: |
||||||||
| less than |
$ |
deleted text begin
930,000 deleted text end new text begin 990,000 new text end |
$ |
0 |
|||||
| $ |
deleted text begin
930,000 deleted text end new text begin 990,000 new text end |
to |
$ |
deleted text begin
1,869,999 deleted text end new text begin 1,989,999 new text end |
$ |
deleted text begin
190 deleted text end new text begin 200 new text end |
|||
| $ |
deleted text begin
1,870,000 deleted text end new text begin 1,990,000 new text end |
to |
$ |
deleted text begin
9,339,999 deleted text end new text begin 9,959,999 new text end |
$ |
deleted text begin
560 deleted text end new text begin 600 new text end |
|||
| $ |
deleted text begin
9,340,000 deleted text end new text begin 9,960,000 new text end |
to |
$ |
deleted text begin
18,679,999 deleted text end new text begin 19,929,999 new text end |
$ |
deleted text begin
1,870 deleted text end new text begin 1,990 new text end |
|||
| $ |
deleted text begin
18,680,000 deleted text end new text begin 19,930,000 new text end |
to |
$ |
deleted text begin
37,359,999 deleted text end new text begin 39,859,999 new text end |
$ |
deleted text begin
3,740 deleted text end new text begin 3,990 new text end |
|||
| $ |
deleted text begin
37,360,000 deleted text end new text begin 39,860,000 new text end |
or |
more |
$ |
deleted text begin
9,340 deleted text end new text begin 9,960 new text end |
||||
(c) The commissioner shall adjust the dollar amounts of both the tax and the property,
payrolls, and sales or receipts thresholds in paragraphs (a) and (b) by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)deleted text begin (B)deleted text end the word deleted text begin "2012"deleted text end new text begin "2017"new text end must be substituted for the word deleted text begin "1992."
For 2014, the commissioner shall determine the percentage change from the 12 months
ending on August 31, 2012, to the 12 months ending on August 31, 2013, and in each
subsequent year, from the 12 months ending on August 31, 2012, to the 12 months ending
on August 31 of the year preceding the taxable year.deleted text end new text begin "2016."new text end The determination of the
commissioner pursuant to this subdivision is not a "rule" subject to the Administrative
Procedure Act contained in chapter 14. The tax amounts as adjusted must be rounded to the
nearest $10 amount and the threshold amounts must be adjusted to the nearest $10,000
amount. For tax amounts that end in $5, the amount is rounded up to the nearest $10 amount
and for the threshold amounts that end in $5,000, the amount is rounded up to the nearest
$10,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 60.
Minnesota Statutes 2016, section 290.095, subdivision 4, is amended to read:
Subd. 4.
Computation and modifications.
The following modifications shall be made
in computing a net operating loss in any taxable year and also in computing the taxable net
income for any taxable year before a net operating loss deduction shall be allowed:
(a) No deduction shall be allowed for or with respect to losses connected with income
producing activities if the income therefrom would not be required to be either assignable
to this state or included in computing the taxpayer's taxable net income.
(b) A net operating loss deduction shall not be allowed.
(c) The amount deductible on account of losses from sales or exchanges of capital assets
shall not exceed the amount includable on account of gains from sales or exchanges of
capital assets.
(d) Renegotiation of profits for a prior taxable year under the renegotiation laws of the
United States of America, including renegotiation of the profits with a subcontractor, shall
not enter into the computation.
(e) Federal income and excess profits taxes shall not be allowed as a deduction.
new text begin
(f) The 80-percent limitation under section 172(a)(2) of the Internal Revenue Code does
not apply to the computations for corporate taxpayers under this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 61.
Minnesota Statutes 2017 Supplement, section 290.17, subdivision 2, is amended
to read:
Subd. 2.
Income not derived from conduct of a trade or business.
The income of a
taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
business must be assigned in accordance with paragraphs (a) to (f):
(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section
3401(a) deleted text begin anddeleted text end new text begin ,new text end (f)new text begin , and (i)new text end of the Internal Revenue Code is assigned to this state if, and to the
extent that, the work of the employee is performed within it; all other income from such
sources is treated as income from sources without this state.
Severance pay shall be considered income from labor or personal or professional services.
(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete
or entertainer, income from compensation for labor or personal services performed within
this state shall be determined in the following manner:
(i) the amount of income to be assigned to Minnesota for an individual who is a
nonresident salaried athletic team employee shall be determined by using a fraction in which
the denominator contains the total number of days in which the individual is under a duty
to perform for the employer, and the numerator is the total number of those days spent in
Minnesota. For purposes of this paragraph, off-season training activities, unless conducted
at the team's facilities as part of a team imposed program, are not included in the total number
of duty days. Bonuses earned as a result of play during the regular season or for participation
in championship, play-off, or all-star games must be allocated under the formula. Signing
bonuses are not subject to allocation under the formula if they are not conditional on playing
any games for the team, are payable separately from any other compensation, and are
nonrefundable; and
(ii) the amount of income to be assigned to Minnesota for an individual who is a
nonresident, and who is an athlete or entertainer not listed in item (i), for that person's athletic
or entertainment performance in Minnesota shall be determined by assigning to this state
all income from performances or athletic contests in this state.
(3) For purposes of this section, amounts received by a nonresident as "retirement income"
as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public
Law 104-95, are not considered income derived from carrying on a trade or business or
from wages or other compensation for work an employee performed in Minnesota, and are
not taxable under this chapter.
(b) Income or gains from tangible property located in this state that is not employed in
the business of the recipient of the income or gains must be assigned to this state.
(c) Income or gains from intangible personal property not employed in the business of
the recipient of the income or gains must be assigned to this state if the recipient of the
income or gains is a resident of this state or is a resident trust or estate.
Gain on the sale of a partnership interest is allocable to this state in the ratio of the
original cost of partnership tangible property in this state to the original cost of partnership
tangible property everywhere, determined at the time of the sale. If more than 50 percent
of the value of the partnership's assets consists of intangibles, gain or loss from the sale of
the partnership interest is allocated to this state in accordance with the sales factor of the
partnership for its first full tax period immediately preceding the tax period of the partnership
during which the partnership interest was sold.
Gain on the sale of an interest in a single member limited liability company that is
disregarded for federal income tax purposes is allocable to this state as if the single member
limited liability company did not exist and the assets of the limited liability company are
personally owned by the sole member.
Gain on the sale of goodwill or income from a covenant not to compete that is connected
with a business operating all or partially in Minnesota is allocated to this state to the extent
that the income from the business in the year preceding the year of sale was allocable to
Minnesota under subdivision 3.
When an employer pays an employee for a covenant not to compete, the income allocated
to this state is in the ratio of the employee's service in Minnesota in the calendar year
preceding leaving the employment of the employer over the total services performed by the
employee for the employer in that year.
(d) Income from winnings on a bet made by an individual while in Minnesota is assigned
to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision
2, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).
(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
(f) For the purposes of this section, working as an employee shall not be considered to
be conducting a trade or business.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for wages paid after December 31, 2017.
new text end
Sec. 62.
Minnesota Statutes 2016, section 290.21, subdivision 4, is amended to read:
Subd. 4.
Dividends received from another corporation.
(a)(1) Eighty percent of
dividends received by a corporation during the taxable year from another corporation, in
which the recipient owns 20 percent or more of the stock, by vote and value, not including
stock described in section 1504(a)(4) of the Internal Revenue Code when the corporate
stock with respect to which dividends are paid does not constitute the stock in trade of the
taxpayer or would not be included in the inventory of the taxpayer, or does not constitute
property held by the taxpayer primarily for sale to customers in the ordinary course of the
taxpayer's trade or business, or when the trade or business of the taxpayer does not consist
principally of the holding of the stocks and the collection of the income and gains therefrom;
and
(2)(i) the remaining 20 percent of dividends if the dividends received are the stock in
an affiliated company transferred in an overall plan of reorganization and the dividend is
eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as amended
through December 31, 1989;
(ii) the remaining 20 percent of dividends if the dividends are received from a corporation
which is subject to tax under section 290.36 and which is a member of an affiliated group
of corporations as defined by the Internal Revenue Code and the dividend is eliminated in
consolidation under Treasury Department Regulation 1.1502-14(a), as amended through
December 31, 1989, or is deducted under an election under section 243(b) of the Internal
Revenue Code; or
(iii) the remaining 20 percent of the dividends if the dividends are received from a
property and casualty insurer as defined under section 60A.60, subdivision 8, which is a
member of an affiliated group of corporations as defined by the Internal Revenue Code and
either: (A) the dividend is eliminated in consolidation under Treasury Regulation
1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted
under an election under section 243(b) of the Internal Revenue Code.
(b) Seventy percent of dividends received by a corporation during the taxable year from
another corporation in which the recipient owns less than 20 percent of the stock, by vote
or value, not including stock described in section 1504(a)(4) of the Internal Revenue Code
when the corporate stock with respect to which dividends are paid does not constitute the
stock in trade of the taxpayer, or does not constitute property held by the taxpayer primarily
for sale to customers in the ordinary course of the taxpayer's trade or business, or when the
trade or business of the taxpayer does not consist principally of the holding of the stocks
and the collection of income and gain therefrom.
(c) The dividend deduction provided in this subdivision shall be allowed only with
respect to dividends that are included in a corporation's Minnesota taxable net income for
the taxable year.
The dividend deduction provided in this subdivision does not apply to a dividend from
a corporation which, for the taxable year of the corporation in which the distribution is made
or for the next preceding taxable year of the corporation, is a corporation exempt from tax
under section 501 of the Internal Revenue Code.
The dividend deduction provided in this subdivision does not apply to a dividend received
from a real estate investment trust as defined in section 856 of the Internal Revenue Code.
The dividend deduction provided in this subdivision applies to the amount of regulated
investment company dividends only to the extent determined under section 854(b) of the
Internal Revenue Code.
The dividend deduction provided in this subdivision shall not be allowed with respect
to any dividend for which a deduction is not allowed under the provisions of section 246(c)new text begin
or 246Anew text end of the Internal Revenue Code.
(d) If dividends received by a corporation that does not have nexus with Minnesota under
the provisions of Public Law 86-272 are included as income on the return of an affiliated
corporation permitted or required to file a combined report under section 290.17, subdivision
4, or 290.34, subdivision 2, then for purposes of this subdivision the determination as to
whether the trade or business of the corporation consists principally of the holding of stocks
and the collection of income and gains therefrom shall be made with reference to the trade
or business of the affiliated corporation having a nexus with Minnesota.
(e) The deduction provided by this subdivision does not apply if the dividends are paid
by a FSC as defined in section 922 of the Internal Revenue Code.
(f) If one or more of the members of the unitary group whose income is included on the
combined report received a dividend, the deduction under this subdivision for each member
of the unitary business required to file a return under this chapter is the product of: (1) 100
percent of the dividends received by members of the group; (2) the percentage allowed
pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business income
apportionable to this state for the taxable year under section 290.191 or 290.20.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 63.
Minnesota Statutes 2016, section 290.21, is amended by adding a subdivision to
read:
new text begin Subd. 9. new text end
new text begin Controlled foreign corporations. new text end
new text begin
The income of a domestic corporation that
is included in net income under section 965 or other provisions of subchapter N, part III,
subpart F, of the Internal Revenue Code is dividend income.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016, with regard to income section 965 of the Internal Revenue Code
and confirms the treatment of income under subpart F of the Internal Revenue Code as
dividend income for any open taxable year.
new text end
Sec. 64.
Minnesota Statutes 2016, section 290.34, is amended by adding a subdivision to
read:
new text begin Subd. 5. new text end
new text begin Insurance companies; interest expense limitation. new text end
new text begin
To be consistent with the
federal treatment of the interest expense limitation under section 163(j) of the Internal
Revenue Code for an affiliated group that includes an insurance company taxable under
chapter 297I and exempt from taxation under section 290.05, subdivision 1, clause (c), the
rules under this subdivision apply. In that case, the interest expense limitation under section
163(j) must be computed for the corporation subject to tax under this chapter using the
adjusted taxable income of the insurance companies that are part of the affiliated group and
taxed under chapter 297I. For purposes of this subdivision, "affiliated group" means the
corporations included in the federal consolidated return for the taxable year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 65.
Minnesota Statutes 2016, section 290.34, is amended by adding a subdivision to
read:
new text begin Subd. 6. new text end
new text begin
Affiliated corporations filing a combined report; interest expense limitation.
new text end
new text begin
Section 163(j) of the Internal Revenue Code shall be applied to affiliated corporations
permitted or required to file a combined report under section 290.17, subdivision 4, consistent
with its application to a consolidated group of corporations for federal income tax purposes.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 66.
Minnesota Statutes 2016, section 290.92, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(1) Wages. For purposes of this section, the term "wages"
means the same as that term is defined in section 3401(a) deleted text begin anddeleted text end new text begin ,new text end (f)new text begin , and (i)new text end of the Internal
Revenue Code.
(2) Payroll period. For purposes of this section the term "payroll period" means a period
for which a payment of wages is ordinarily made to the employee by the employee's
employer, and the term "miscellaneous payroll period" means a payroll period other than a
daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll
period.
(3) Employee. For purposes of this section the term "employee" means any resident
individual performing services for an employer, either within or without, or both within and
without the state of Minnesota, and every nonresident individual performing services within
the state of Minnesota, the performance of which services constitute, establish, and determine
the relationship between the parties as that of employer and employee. As used in the
preceding sentence, the term "employee" includes an officer of a corporation, and an officer,
employee, or elected official of the United States, a state, or any political subdivision thereof,
or the District of Columbia, or any agency or instrumentality of any one or more of the
foregoing.
(4) Employer. For purposes of this section the term "employer" means any person,
including individuals, fiduciaries, estates, trusts, partnerships, limited liability companies,
and corporations transacting business in or deriving any income from sources within the
state of Minnesota for whom an individual performs or performed any service, of whatever
nature, as the employee of such person, except that if the person for whom the individual
performs or performed the services does not have control of the payment of the wages for
such services, the term "employer," except for purposes of paragraph (1), means the person
having control of the payment of such wages. As used in the preceding sentence, the term
"employer" includes any corporation, individual, estate, trust, or organization which is
exempt from taxation under section 290.05 and further includes, but is not limited to, officers
of corporations who have control, either individually or jointly with another or others, of
the payment of the wages.
(5) Number of withholding exemptions claimed. For purposes of this section, the term
"number of withholding exemptions claimed" means the number of withholding exemptions
claimed in a withholding exemption certificate in effect under subdivision 5, except that if
no such certificate is in effect, the number of withholding exemptions claimed shall be
considered to be zero.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for wages paid after July 1, 2018.
new text end
Sec. 67.
Minnesota Statutes 2017 Supplement, section 290A.03, subdivision 3, is amended
to read:
Subd. 3.
Income.
(a) "Income" means the sum of the following:
(1) federal adjusted gross income as defined in the Internal Revenue Code; and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;
(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;
(xiii) nontaxable scholarship or fellowship grants;
(xiv) deleted text begin the amount of deduction allowed under section 199 of the Internal Revenue Codedeleted text end new text begin
alimony received to the extent not included in the recipient's incomenew text end ;
(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; deleted text begin and
deleted text end
(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Codenew text begin ;
new text end
new text begin
(xviii) the amount excluded from federal adjusted gross income for qualified moving
expense reimbursements under section 132(a)(6) of the Internal Revenue Code, as amended
through December 16, 2016; and
new text end
new text begin (xix) the amount deducted from federal adjusted gross income for moving expenses
under section 217 of the Internal Revenue Code, as amended through December 16, 2016new text end .
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.
(b) "Income" does not include:
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;
(4) surplus food or other relief in kind supplied by a governmental agency;
(5) relief granted under this chapter;
(6) child support payments received under a temporary or final decree of dissolution or
legal separation; or
(7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16.
(c) The sum of the following amounts may be subtracted from income:
(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(5) for the claimant's fifth dependent, the exemption amount; and
(6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or
before December 31 of the year for which the taxes were levied or rent paid, the exemption
amount.
(d) For purposes of this subdivisiondeleted text begin , thedeleted text end new text begin :
new text end
new text begin (1)new text end "exemption amount" means deleted text begin the exemption amount under section 151(d) of the Internal
Revenue Code for the taxable year for which the income is reported; "retirement base
amount" means the deductible amount for the taxable year for the claimant and spouse under
section 219(b)(5)(A) of the Internal Revenue Code, adjusted for inflation as provided in
section 219(b)(5)(C) of the Internal Revenue Code, without regard to whether the claimant
or spouse claimed a deduction; and "traditional or Roth style retirement account or plan"
means retirement plans under sections 401, 403, 408, 408A, and 457 of the Internal Revenue
Code.deleted text end new text begin $4,150. For refunds payable after December 31, 2018, the commissioner shall annually
adjust the $4,150 by the percentage determined pursuant to the provisions of section 1(f)
of the Internal Revenue Code, as amended through March 31, 2018. The exemption amount
as adjusted for inflation must be rounded to the nearest $50. If the amount is not a multiple
of $50, the commissioner shall round down to the next lowest multiple of $50. The
determination of the commissioner under this subdivision is not a rule under the
Administrative Procedure Act, including section 14.386; and
new text end
new text begin
(2) "retirement base amount" means the deductible amount for the taxable year for the
claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
to whether the claimant or spouse claimed a deduction, and "traditional or Roth-style
retirement account or plan" means retirement plans under sections 401, 403, 408, 408A,
and 457 of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refunds based on property taxes
payable after December 31, 2018, and rent paid after December 31, 2017.
new text end
Sec. 68.
Minnesota Statutes 2016, section 290A.03, subdivision 12, is amended to read:
Subd. 12.
Gross rent.
(a) "Gross rent" means rental paid for the right of occupancy, at
arm's length, of a homestead, exclusive of charges for any medical services furnished by
the landlord as a part of the rental agreement, whether expressly set out in the rental
agreement or not.
(b) The gross rent of a resident of a nursing home or intermediate care facility is deleted text begin $350deleted text end new text begin
$490new text end per month. The gross rent of a resident of an adult foster care home is deleted text begin $550deleted text end new text begin $760new text end per
month. Beginning for rent paid in deleted text begin 2002deleted text end new text begin 2019new text end , the commissioner shall annually adjust for
inflation the gross rent amounts stated in this paragraph. The adjustment must be made in
accordance with section 1(f) of the Internal Revenue Code, except that for purposes of this
paragraph the percentage increase shall be determined from the year ending on June 30,
deleted text begin 2001deleted text end new text begin 2017new text end , to the year ending on June 30 of the year in which the rent is paid. The
commissioner shall round the gross rents to the nearest $10 amount. If the amount ends in
$5, the commissioner shall round it up to the next $10 amount. The determination of the
commissioner under this paragraph is not a rule under the Administrative Procedure Act.
(c) If the landlord and tenant have not dealt with each other at arm's length and the
commissioner determines that the gross rent charged was excessive, the commissioner may
adjust the gross rent to a reasonable amount for purposes of this chapter.
(d) Any amount paid by a claimant residing in property assessed pursuant to section
273.124, subdivision 3, 4, 5, or 6 for occupancy in that property shall be excluded from
gross rent for purposes of this chapter. However, property taxes imputed to the homestead
of the claimant or the dwelling unit occupied by the claimant that qualifies for homestead
treatment pursuant to section 273.124, subdivision 3, 4, 5, or 6 shall be included within the
term "property taxes payable" as defined in subdivision 13, notwithstanding the fact that
ownership is not in the name of the claimant.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refunds based on rent paid after
December 31, 2017, and property taxes payable after December 31, 2018.
new text end
Sec. 69.
Minnesota Statutes 2017 Supplement, section 290A.03, subdivision 15, is amended
to read:
Subd. 15.
Internal Revenue Code.
"Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through deleted text begin December 16, 2016deleted text end new text begin March 31, 2018new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refunds based on property taxes
payable after December 31, 2018, and rent paid after December 31, 2017.
new text end
Sec. 70.
Minnesota Statutes 2016, section 290A.04, subdivision 2, is amended to read:
Subd. 2.
Homeowners; homestead credit refund.
A claimant whose property taxes
payable are in excess of the percentage of the household income stated below shall pay an
amount equal to the percent of income shown for the appropriate household income level
along with the percent to be paid by the claimant of the remaining amount of property taxes
payable. The state refund equals the amount of property taxes payable that remain, up to
the state refund amount shown below.
| Household Income |
Percent of Income |
Percent Paid by Claimant |
Maximum State Refund |
|
| $0 to deleted text begin 1,619deleted text end new text begin 1,729 new text end |
1.0 percent |
15 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 1,620deleted text end new text begin 1,730new text end to deleted text begin 3,229deleted text end new text begin 3,449 new text end |
1.1 percent |
15 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 3,230deleted text end new text begin 3,450new text end to deleted text begin 4,889deleted text end new text begin 5,229 new text end |
1.2 percent |
15 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 4,890deleted text end new text begin 5,230new text end to deleted text begin 6,519deleted text end new text begin 6,969 new text end |
1.3 percent |
20 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 6,520deleted text end new text begin 6,970new text end to deleted text begin 8,129deleted text end new text begin 8,689 new text end |
1.4 percent |
20 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 8,130deleted text end new text begin 8,690new text end to deleted text begin 11,389deleted text end new text begin 12,169 new text end |
1.5 percent |
20 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 11,390deleted text end new text begin 12,170new text end to deleted text begin 13,009deleted text end new text begin 13,899 new text end |
1.6 percent |
20 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 13,010deleted text end new text begin 13,900new text end to deleted text begin 14,649deleted text end new text begin 15,659 new text end |
1.7 percent |
20 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 14,650deleted text end new text begin 15,660new text end to deleted text begin 16,269deleted text end new text begin 17,389 new text end |
1.8 percent |
20 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 16,270deleted text end new text begin 17,390new text end to deleted text begin 17,879deleted text end new text begin 19,109 new text end |
1.9 percent |
25 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 17,880deleted text end new text begin 19,110new text end to deleted text begin 22,779deleted text end new text begin 24,349 new text end |
2.0 percent |
25 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 22,780deleted text end new text begin 24,350new text end to deleted text begin 24,399deleted text end new text begin 26,079 new text end |
2.0 percent |
30 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 24,400deleted text end new text begin 26,080new text end to deleted text begin 27,659deleted text end new text begin 29,559 new text end |
2.0 percent |
30 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 27,660deleted text end new text begin 29,560new text end to deleted text begin 39,029deleted text end new text begin 41,709 new text end |
2.0 percent |
35 percent |
$ |
deleted text begin
2,580
deleted text end
new text begin
2,760 new text end |
| deleted text begin 39,030deleted text end new text begin 41,710new text end to deleted text begin 56,919deleted text end new text begin 60,829 new text end |
2.0 percent |
35 percent |
$ |
deleted text begin
2,090
deleted text end
new text begin
2,230 new text end |
| deleted text begin 56,920deleted text end new text begin 60,830new text end to deleted text begin 65,049deleted text end new text begin 69,519 new text end |
2.0 percent |
40 percent |
$ |
deleted text begin
1,830
deleted text end
new text begin
1,960 new text end |
| deleted text begin 65,050deleted text end new text begin 69,520new text end to deleted text begin 73,189deleted text end new text begin 78,219 new text end |
2.1 percent |
40 percent |
$ |
deleted text begin
1,510
deleted text end
new text begin
1,610 new text end |
| deleted text begin 73,190deleted text end new text begin 78,220new text end to deleted text begin 81,319deleted text end new text begin 86,909 new text end |
2.2 percent |
40 percent |
$ |
deleted text begin
1,350
deleted text end
new text begin
1,440 new text end |
| deleted text begin 81,320deleted text end new text begin 86,910new text end to deleted text begin 89,449deleted text end new text begin 95,599 new text end |
2.3 percent |
40 percent |
$ |
deleted text begin
1,180
deleted text end
new text begin
1,260 new text end |
| deleted text begin 89,450deleted text end new text begin 95,600new text end to deleted text begin 94,339deleted text end new text begin 100,819 new text end |
2.4 percent |
45 percent |
$ |
deleted text begin
1,000
deleted text end
new text begin
1,070 new text end |
| deleted text begin 94,340deleted text end new text begin 100,820new text end to deleted text begin 97,609deleted text end new text begin 104,319 new text end |
2.5 percent |
45 percent |
$ |
deleted text begin
830
deleted text end
new text begin
890 new text end |
| deleted text begin 97,610deleted text end new text begin 104,320new text end to deleted text begin 101,559deleted text end new text begin 108,539 new text end |
2.5 percent |
50 percent |
$ |
deleted text begin
680
deleted text end
new text begin
730 new text end |
| deleted text begin 101,560deleted text end new text begin 108,540new text end to deleted text begin 105,499deleted text end new text begin 112,749 new text end |
2.5 percent |
50 percent |
$ |
deleted text begin
500
deleted text end
new text begin
530 new text end |
The payment made to a claimant shall be the amount of the state refund calculated under
this subdivision. No payment is allowed if the claimant's household income is deleted text begin $105,500deleted text end new text begin
$112,750new text end or more.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refunds based on property taxes
payable after December 31, 2017.
new text end
Sec. 71.
Minnesota Statutes 2016, section 290A.04, subdivision 2a, is amended to read:
Subd. 2a.
Renters.
A claimant whose rent constituting property taxes exceeds the
percentage of the household income stated below must pay an amount equal to the percent
of income shown for the appropriate household income level along with the percent to be
paid by the claimant of the remaining amount of rent constituting property taxes. The state
refund equals the amount of rent constituting property taxes that remain, up to the maximum
state refund amount shown below.
| Household Income |
Percent of Income |
Percent Paid by Claimant |
Maximum State Refund |
|
| $0 to deleted text begin 4,909deleted text end new text begin 5,249 new text end |
1.0 percent |
5 percent |
$ |
deleted text begin
2,000
deleted text end
new text begin
2,140 new text end |
| deleted text begin 4,910deleted text end new text begin 5,250new text end to deleted text begin 6,529deleted text end new text begin 6,979 new text end |
1.0 percent |
10 percent |
$ |
deleted text begin
2,000
deleted text end
new text begin
2,140 new text end |
| deleted text begin 6,530deleted text end new text begin 6,980new text end to deleted text begin 8,159deleted text end new text begin 8,719 new text end |
1.1 percent |
10 percent |
$ |
deleted text begin
1,950
deleted text end
new text begin
2,080 new text end |
| deleted text begin 8,160deleted text end new text begin 8,720new text end to deleted text begin 11,439deleted text end new text begin 12,229 new text end |
1.2 percent |
10 percent |
$ |
deleted text begin
1,900
deleted text end
new text begin
2,030 new text end |
| deleted text begin 11,440deleted text end new text begin 12,230new text end to deleted text begin 14,709deleted text end new text begin 15,719 new text end |
1.3 percent |
15 percent |
$ |
deleted text begin
1,850
deleted text end
new text begin
1,980 new text end |
| deleted text begin 14,710deleted text end new text begin 15,720new text end to deleted text begin 16,339deleted text end new text begin 17,459 new text end |
1.4 percent |
15 percent |
$ |
deleted text begin
1,800
deleted text end
new text begin
1,920 new text end |
| deleted text begin 16,340deleted text end new text begin 17,460new text end to deleted text begin 17,959deleted text end new text begin 19,189 new text end |
1.4 percent |
20 percent |
$ |
deleted text begin
1,750
deleted text end
new text begin
1,870 new text end |
| deleted text begin 17,960deleted text end new text begin 19,190new text end to deleted text begin 21,239deleted text end new text begin 22,699 new text end |
1.5 percent |
20 percent |
$ |
deleted text begin
1,700
deleted text end
new text begin
1,820 new text end |
| deleted text begin 21,240deleted text end new text begin 22,700new text end to deleted text begin 22,869deleted text end new text begin 24,439 new text end |
1.6 percent |
20 percent |
$ |
deleted text begin
1,650
deleted text end
new text begin
1,760 new text end |
| deleted text begin 22,870deleted text end new text begin 24,440new text end to 24,499new text begin 26,179 new text end |
1.7 percent |
25 percent |
$ |
deleted text begin
1,650
deleted text end
new text begin
1,760 new text end |
| deleted text begin 24,500deleted text end new text begin 26,180new text end to 27,779new text begin 29,689 new text end |
1.8 percent |
25 percent |
$ |
deleted text begin
1,650
deleted text end
new text begin
1,760 new text end |
| deleted text begin 27,780deleted text end new text begin 29,690new text end to deleted text begin 29,399deleted text end new text begin 31,419 new text end |
1.9 percent |
30 percent |
$ |
deleted text begin
1,650
deleted text end
new text begin
1,760 new text end |
| deleted text begin 29,400deleted text end new text begin 31,420new text end to deleted text begin 34,299deleted text end new text begin 36,659 new text end |
2.0 percent |
30 percent |
$ |
deleted text begin
1,650
deleted text end
new text begin
1,760 new text end |
| deleted text begin 34,300deleted text end new text begin 36,660new text end to deleted text begin 39,199deleted text end new text begin 41,889 new text end |
2.0 percent |
35 percent |
$ |
deleted text begin
1,650
deleted text end
new text begin
1,760 new text end |
| deleted text begin 39,200deleted text end new text begin 41,890new text end to deleted text begin 45,739deleted text end new text begin 48,879 new text end |
2.0 percent |
40 percent |
$ |
deleted text begin
1,650
deleted text end
new text begin
1,760 new text end |
| deleted text begin 45,740deleted text end new text begin 48,880new text end to deleted text begin 47,369deleted text end new text begin 50,629 new text end |
2.0 percent |
45 percent |
$ |
deleted text begin
1,500
deleted text end
new text begin
1,600 new text end |
| deleted text begin 47,370deleted text end new text begin 50,630new text end to deleted text begin 49,009deleted text end new text begin 52,379 new text end |
2.0 percent |
45 percent |
$ |
deleted text begin
1,350
deleted text end
new text begin
1,440 new text end |
| deleted text begin 49,010deleted text end new text begin 52,380new text end to deleted text begin 50,649deleted text end new text begin 54,129 new text end |
2.0 percent |
45 percent |
$ |
deleted text begin
1,150
deleted text end
new text begin
1,230 new text end |
| deleted text begin 50,650deleted text end new text begin 54,130new text end to deleted text begin 52,269deleted text end new text begin 55,859 new text end |
2.0 percent |
50 percent |
$ |
deleted text begin
1,000
deleted text end
new text begin
1,070 new text end |
| deleted text begin 52,270deleted text end new text begin 55,860new text end to deleted text begin 53,909deleted text end new text begin 57,619 new text end |
2.0 percent |
50 percent |
$ |
deleted text begin
900
deleted text end
new text begin
960 new text end |
| deleted text begin 53,910deleted text end new text begin 57,620new text end to deleted text begin 55,539deleted text end new text begin 59,359 new text end |
2.0 percent |
50 percent |
$ |
deleted text begin
500
deleted text end
new text begin
530 new text end |
| deleted text begin 55,540deleted text end new text begin 59,360new text end to deleted text begin 57,169deleted text end new text begin 61,099 new text end |
2.0 percent |
50 percent |
$ |
deleted text begin
200
deleted text end
new text begin
210 new text end |
The payment made to a claimant is the amount of the state refund calculated under this
subdivision. No payment is allowed if the claimant's household income is deleted text begin $57,170deleted text end new text begin $61,100new text end
or more.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refunds based on rent paid after
December 31, 2016.
new text end
Sec. 72.
Minnesota Statutes 2016, section 290A.04, subdivision 4, is amended to read:
Subd. 4.
Inflation adjustment.
(a) Beginning for property tax refunds payable in calendar
year 2002, the commissioner shall annually adjust the dollar amounts of the income thresholds
and the maximum refunds under subdivisions 2 and 2a for inflation. The commissioner
shall make the inflation adjustments in accordance with section 1(f) of the Internal Revenue
Code, except that for purposes of this subdivision the percentage increase shall be determined
as provided in this subdivision.
(b) In adjusting the dollar amounts of the income thresholds and the maximum refunds
under subdivision 2 for inflation, the percentage increase shall be determined from the year
ending on June 30, deleted text begin 2013deleted text end new text begin 2018new text end , to the year ending on June 30 of the year preceding that in
which the refund is payable.
(c) In adjusting the dollar amounts of the income thresholds and the maximum refunds
under subdivision 2a for inflation, the percentage increase shall be determined from the
year ending on June 30, deleted text begin 2013deleted text end new text begin 2018new text end , to the year ending on June 30 of the year preceding that
in which the refund is payable.
(d) The commissioner shall use the appropriate percentage increase to annually adjust
the income thresholds and maximum refunds under subdivisions 2 and 2a for inflation
without regard to whether or not the income tax brackets are adjusted for inflation in that
year. The commissioner shall round the thresholds and the maximum amounts, as adjusted
to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to
the next $10 amount.
(e) The commissioner shall annually announce the adjusted refund schedule at the same
time provided under section 290.06. The determination of the commissioner under this
subdivision is not a rule under the Administrative Procedure Act.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refunds based on property taxes paid
after December 31, 2018, and rent paid after December 31, 2017.
new text end
Sec. 73.
Minnesota Statutes 2017 Supplement, section 291.005, subdivision 1, is amended
to read:
Subdivision 1.
Scope.
Unless the context otherwise clearly requires, the following terms
used in this chapter shall have the following meanings:
(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.
(2) "Federal gross estate" means the gross estate of a decedent as required to be valued
and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
increased by the value of any property in which the decedent had a qualifying income interest
for life and for which an election was made under section 291.03, subdivision 1d, for
Minnesota estate tax purposes, but was not made for federal estate tax purposes.
(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
as amended through deleted text begin December 16, 2016deleted text end new text begin March 31, 2018new text end .
(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included in the estate which has its situs outside Minnesota,
and (b) including any property omitted from the federal gross estate which is includable in
the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
(5) "Nonresident decedent" means an individual whose domicile at the time of death
was not in Minnesota.
(6) "Personal representative" means the executor, administrator or other person appointed
by the court to administer and dispose of the property of the decedent. If there is no executor,
administrator or other person appointed, qualified, and acting within this state, then any
person in actual or constructive possession of any property having a situs in this state which
is included in the federal gross estate of the decedent shall be deemed to be a personal
representative to the extent of the property and the Minnesota estate tax due with respect
to the property.
(7) "Resident decedent" means an individual whose domicile at the time of death was
in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply
to determinations of domicile under this chapter.
(8) "Situs of property" means, with respect to:
(i) real property, the state or country in which it is located;
(ii) tangible personal property, the state or country in which it was normally kept or
located at the time of the decedent's death or for a gift of tangible personal property within
three years of death, the state or country in which it was normally kept or located when the
gift was executed;
(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
Code, owned by a nonresident decedent and that is normally kept or located in this state
because it is on loan to an organization, qualifying as exempt from taxation under section
501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
(iv) intangible personal property, the state or country in which the decedent was domiciled
at death or for a gift of intangible personal property within three years of death, the state or
country in which the decedent was domiciled when the gift was executed.
For a nonresident decedent with an ownership interest in a pass-through entity with
assets that include real or tangible personal property, situs of the real or tangible personal
property, including qualified works of art, is determined as if the pass-through entity does
not exist and the real or tangible personal property is personally owned by the decedent. If
the pass-through entity is owned by a person or persons in addition to the decedent, ownership
of the property is attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.
(9) "Pass-through entity" includes the following:
(i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;
(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
(iii) a single-member limited liability company or similar entity, regardless of whether
it is taxed as an association or is disregarded for federal income tax purposes under Code
of Federal Regulations, title 26, section 301.7701-3; or
(iv) a trust to the extent the property is includible in the decedent's federal gross estate;
but excludes
(v) an entity whose ownership interest securities are traded on an exchange regulated
by the Securities and Exchange Commission as a national securities exchange under section
6 of the Securities Exchange Act, United States Code, title 15, section 78f.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after December 31, 2017.
new text end
Sec. 74.
Minnesota Statutes 2016, section 297A.68, subdivision 25, is amended to read:
Subd. 25.
Sale of property used in a trade or business.
(a) The sale of tangible personal
property primarily used in a trade or business is exempt if the sale is not made in the normal
course of business of selling that kind of property and if one of the following conditions is
satisfied:
(1) the sale occurs in a transaction subject to or described in section 118, 331, 332, 336,
337, 338, 351, 355, 368, 721, 731, 1031, or 1033 of the Internal Revenue Codenew text begin , as amended
through December 16, 2016new text end ;
(2) the sale is between members of a controlled group as defined in section 1563(a) of
the Internal Revenue Code;
(3) the sale is a sale of farm machinery;
(4) the sale is a farm auction sale;
(5) the sale is a sale of substantially all of the assets of a trade or business; or
(6) the total amount of gross receipts from the sale of trade or business property made
during the calendar month of the sale and the preceding 11 calendar months does not exceed
$1,000.
The use, storage, distribution, or consumption of tangible personal property acquired as
a result of a sale exempt under this subdivision is also exempt.
(b) For purposes of this subdivision, the following terms have the meanings given.
(1) A "farm auction" is a public auction conducted by a licensed auctioneer if substantially
all of the property sold consists of property used in the trade or business of farming and
property not used primarily in a trade or business.
(2) "Trade or business" includes the assets of a separate division, branch, or identifiable
segment of a trade or business if, before the sale, the income and expenses attributable to
the separate division, branch, or identifiable segment could be separately ascertained from
the books of account or record (the lease or rental of an identifiable segment does not qualify
for the exemption).
(3) A "sale of substantially all of the assets of a trade or business" must occur as a single
transaction or a series of related transactions within the 12-month period beginning on the
date of the first sale of assets intended to qualify for the exemption provided in paragraph
(a), clause (5).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for sales and purchases
made after December 31, 2017.
new text end
Sec. 75.
Minnesota Statutes 2016, section 297B.03, is amended to read:
297B.03 EXEMPTIONS.
There is specifically exempted from the provisions of this chapter and from computation
of the amount of tax imposed by it the following:
(1) purchase or use, including use under a lease purchase agreement or installment sales
contract made pursuant to section 465.71, of any motor vehicle by the United States and its
agencies and instrumentalities and by any person described in and subject to the conditions
provided in section 297A.67, subdivision 11;
(2) purchase or use of any motor vehicle by any person who was a resident of another
state or country at the time of the purchase and who subsequently becomes a resident of
Minnesota, provided the purchase occurred more than 60 days prior to the date such person
began residing in the state of Minnesota and the motor vehicle was registered in the person's
name in the other state or country;
(3) purchase or use of any motor vehicle by any person making a valid election to be
taxed under the provisions of section 297A.90;
(4) purchase or use of any motor vehicle previously registered in the state of Minnesota
when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336,
337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Codenew text begin ,
as amended through December 16, 2016new text end ;
(5) purchase or use of any vehicle owned by a resident of another state and leased to a
Minnesota-based private or for-hire carrier for regular use in the transportation of persons
or property in interstate commerce provided the vehicle is titled in the state of the owner or
secured party, and that state does not impose a sales tax or sales tax on motor vehicles used
in interstate commerce;
(6) purchase or use of a motor vehicle by a private nonprofit or public educational
institution for use as an instructional aid in automotive training programs operated by the
institution. "Automotive training programs" includes motor vehicle body and mechanical
repair courses but does not include driver education programs;
(7) purchase of a motor vehicle by an ambulance service licensed under section 144E.10
when that vehicle is equipped and specifically intended for emergency response or for
providing ambulance service;
(8) purchase of a motor vehicle by or for a public library, as defined in section 134.001,
subdivision 2, as a bookmobile or library delivery vehicle;
(9) purchase of a ready-mixed concrete truck;
(10) purchase or use of a motor vehicle by a town for use exclusively for road
maintenance, including snowplows and dump trucks, but not including automobiles, vans,
or pickup trucks;
(11) purchase or use of a motor vehicle by a corporation, society, association, foundation,
or institution organized and operated exclusively for charitable, religious, or educational
purposes, except a public school, university, or library, but only if the vehicle is:
(i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and used
for carrying more than nine persons including the driver; and
(ii) 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;
(12) purchase of a motor vehicle for use by a transit provider exclusively to provide
transit service is exempt if the transit provider is either (i) receiving financial assistance or
reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29,
473.388, or 473.405;
(13) purchase or use of a motor vehicle by a qualified business, as defined in section
469.310, located in a job opportunity building zone, if the motor vehicle is principally
garaged in the job opportunity building zone and is primarily used as part of or in direct
support of the person's operations carried on in the job opportunity building zone. The
exemption under this clause applies to sales, if the purchase was made and delivery received
during the duration of the job opportunity building zone. The exemption under this clause
also applies to any local sales and use tax;
(14) purchase of a leased vehicle by the lessee who was a participant in a lease-to-own
program from a charitable organization that is:
(i) described in section 501(c)(3) of the Internal Revenue Code; and
(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and
(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the
provision of medical or dental services by a federally qualified health center, as defined
under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus Budget
Reconciliation Act of 1990.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for sales and purchases
made after December 31, 2017.
new text end
Sec. 76.
Minnesota Statutes 2017 Supplement, section 462D.06, subdivision 1, is amended
to read:
Subdivision 1.
Subtraction.
(a) As provided in section 290.0132, subdivision 25, an
account holder is allowed a subtraction from deleted text begin thedeleted text end federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end income equal
to interest or dividends earned on the first-time home buyer savings account during the
taxable year.
(b) The subtraction under paragraph (a) is allowed each year for the taxable years
including and following the taxable year in which the account was established. No person
other than the account holder is allowed a subtraction under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 77.
Minnesota Statutes 2017 Supplement, section 462D.06, subdivision 2, is amended
to read:
Subd. 2.
Addition.
(a) As provided in section 290.0131, subdivision 14, an account
holder must add to federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end income the following amounts:
(1) the amount in excess of the total contributions for all taxable years that is withdrawn
and used for other than eligible costs, or for a transfer permitted under section 462D.04,
subdivision 2; and
(2) the amount remaining in the first-time home buyer savings account at the close of
the tenth taxable year that exceeds the total contributions to the account for all taxable years.
(b) For an account that received a transfer under section 462D.04, subdivision 2, the
ten-year period under paragraph (a), clause (2), ends at the close of the earliest taxable year
that applies to either account under that clause.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 78.
Minnesota Statutes 2016, section 469.316, subdivision 1, is amended to read:
Subdivision 1.
Application.
An individual, estate, or trust operating a trade or business
in a job opportunity building zone, and an individual, estate, or trust making a qualifying
investment in a qualified business operating in a job opportunity building zone qualifies for
the exemptions from taxes imposed under chapter 290, as provided in this section. The
exemptions provided under this section apply only to the extent that the income otherwise
would be taxable under chapter 290. Subtractions under this section from new text begin federal adjusted
gross income, new text end federal taxable income, alternative minimum taxable income, or any other
base subject to tax are limited to the amount that otherwise would be included in the tax
base absent the exemption under this section. This section applies only to taxable years
beginning during the duration of the job opportunity building zone.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 79.
Minnesota Statutes 2016, section 469.317, is amended to read:
469.317 CORPORATE FRANCHISE TAX EXEMPTION.
(a) A qualified business is exempt from taxation under section 290.02deleted text begin , the alternative
minimum tax under section 290.0921,deleted text end and the minimum fee under section 290.0922deleted text begin ,deleted text end on the
portion of its income attributable to operations within the zone. deleted text begin This exemption is determined
as follows:
deleted text end
deleted text begin (1)deleted text end new text begin (b) new text end For purposes of the tax imposed under section 290.02, new text begin the exemption is determined
new text end by multiplying its taxable net income by its zone percentage and by its relocation payroll
percentage and subtracting the result in determining taxable incomedeleted text begin ;deleted text end new text begin .
new text end
deleted text begin
(2) for purposes of the alternative minimum tax under section 290.0921, by multiplying
its alternative minimum taxable income by its zone percentage and by its relocation payroll
percentage and reducing alternative minimum taxable income by this amount; and
deleted text end
deleted text begin (3)deleted text end new text begin (c) new text end For purposes of the minimum fee under section 290.0922, new text begin the exemption is
determined new text end by excluding property and payroll in the zone from the computations of the fee
or by exempting the entity under section 290.0922, subdivision 2, clause (7).
deleted text begin (b)deleted text end new text begin (d)new text end No subtraction is allowed under this section in excess of 20 percent of the sum
of the corporation's job opportunity building zone payroll and the adjusted basis of the
property at the time that the property is first used in the job opportunity building zone by
the corporation.
deleted text begin (c)deleted text end new text begin (e)new text end This section applies only to taxable years beginning during the duration of the
job opportunity building zone.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 80. new text begin ESTIMATED TAXES; EXCEPTIONS.
new text end
new text begin
No addition to tax, penalties, or interest may be made under Minnesota Statutes, section
289A.25 or 289A.26, for any period before November 15, 2018, with respect to an
underpayment of estimated tax, to the extent that the underpayment was created or increased
by the inclusion of deferred foreign income in federal taxable income under section 965 of
the Internal Revenue Code under this article.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end
Sec. 81. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2016, sections 290.0131, subdivisions 7 and 11; 290.0133,
subdivisions 13 and 14; 290.067, subdivision 2a; 290.0921, subdivisions 1, 2, 3, 3a, 4, and
6; and 290.10, subdivision 2,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
ARTICLE 3
INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES
Section 1.
Minnesota Statutes 2016, section 116J.8737, subdivision 5, is amended to read:
Subd. 5.
Credit allowed.
(a)(1) A qualified investor or qualified fund is eligible for a
credit equal to 25 percent of the qualified investment in a qualified small business.
Investments made by a pass-through entity qualify for a credit only if the entity is a qualified
fund. The commissioner must not allocate more than deleted text begin $15,000,000deleted text end new text begin $5,000,000new text end in credits to
qualified investors or qualified funds for taxable years beginning after December 31, deleted text begin 2013deleted text end new text begin
2017new text end , and before January 1, deleted text begin 2017, and must not allocate more than $10,000,000 in credits
to qualified investors or qualified funds for taxable years beginning after December 31,
2016, and before January 1, 2018deleted text end new text begin 2019new text end ; and
(2) deleted text begin for taxable years beginning after December 31, 2014, and before January 1, 2018,
deleted text end 50 percent must be allocated to credits for qualifying investments in qualified greater
Minnesota businesses and minority- or women-owned qualified small businesses in
Minnesota. Any portion of a taxable year's credits that is reserved for qualifying investments
in greater Minnesota businesses and minority- or women-owned qualified small businesses
in Minnesota that is not allocated by September 30 of the taxable year is available for
allocation to other credit applications beginning on October 1. Any portion of a taxable
year's credits that is not allocated by the commissioner does not cancel and may be carried
forward to subsequent taxable years until all credits have been allocated.
(b) The commissioner may not allocate more than a total maximum amount in credits
for a taxable year to a qualified investor for the investor's cumulative qualified investments
as an individual qualified investor and as an investor in a qualified fund; for married couples
filing joint returns the maximum is $250,000, and for all other filers the maximum is
$125,000. The commissioner may not allocate more than a total of $1,000,000 in credits
over all taxable years for qualified investments in any one qualified small business.
(c) The commissioner may not allocate a credit to a qualified investor either as an
individual qualified investor or as an investor in a qualified fund if, at the time the investment
is proposed:
(1) the investor is an officer or principal of the qualified small business; or
(2) the investor, either individually or in combination with one or more members of the
investor's family, owns, controls, or holds the power to vote 20 percent or more of the
outstanding securities of the qualified small business.
A member of the family of an individual disqualified by this paragraph is not eligible for a
credit under this section. For a married couple filing a joint return, the limitations in this
paragraph apply collectively to the investor and spouse. For purposes of determining the
ownership interest of an investor under this paragraph, the rules under section 267(c) and
267(e) of the Internal Revenue Code apply.
(d) Applications for tax credits deleted text begin for 2010deleted text end must be made available on the department's
Web site by deleted text begin September 1, 2010, and the department must begin accepting applications by
September 1, 2010. Applications for subsequent years must be made available bydeleted text end November
1 of the preceding year.
(e) Qualified investors and qualified funds must apply to the commissioner for tax credits.
Tax credits must be allocated to qualified investors or qualified funds in the order that the
tax credit request applications are filed with the department. The commissioner must approve
or reject tax credit request applications within 15 days of receiving the application. The
investment specified in the application must be made within 60 days of the allocation of
the credits. If the investment is not made within 60 days, the credit allocation is canceled
and available for reallocation. A qualified investor or qualified fund that fails to invest as
specified in the application, within 60 days of allocation of the credits, must notify the
commissioner of the failure to invest within five business days of the expiration of the
60-day investment period.
(f) All tax credit request applications filed with the department on the same day must
be treated as having been filed contemporaneously. If two or more qualified investors or
qualified funds file tax credit request applications on the same day, and the aggregate amount
of credit allocation claims exceeds the aggregate limit of credits under this section or the
lesser amount of credits that remain unallocated on that day, then the credits must be allocated
among the qualified investors or qualified funds who filed on that day on a pro rata basis
with respect to the amounts claimed. The pro rata allocation for any one qualified investor
or qualified fund is the product obtained by multiplying a fraction, the numerator of which
is the amount of the credit allocation claim filed on behalf of a qualified investor and the
denominator of which is the total of all credit allocation claims filed on behalf of all
applicants on that day, by the amount of credits that remain unallocated on that day for the
taxable year.
(g) A qualified investor or qualified fund, or a qualified small business acting on their
behalf, must notify the commissioner when an investment for which credits were allocated
has been made, and the taxable year in which the investment was made. A qualified fund
must also provide the commissioner with a statement indicating the amount invested by
each investor in the qualified fund based on each investor's share of the assets of the qualified
fund at the time of the qualified investment. After receiving notification that the investment
was made, the commissioner must issue credit certificates for the taxable year in which the
investment was made to the qualified investor or, for an investment made by a qualified
fund, to each qualified investor who is an investor in the fund. The certificate must state
that the credit is subject to revocation if the qualified investor or qualified fund does not
hold the investment in the qualified small business for at least three years, consisting of the
calendar year in which the investment was made and the two following years. The three-year
holding period does not apply if:
(1) the investment by the qualified investor or qualified fund becomes worthless before
the end of the three-year period;
(2) 80 percent or more of the assets of the qualified small business is sold before the end
of the three-year period;
(3) the qualified small business is sold before the end of the three-year period;
(4) the qualified small business's common stock begins trading on a public exchange
before the end of the three-year period; or
(5) the qualified investor dies before the end of the three-year period.
(h) The commissioner must notify the commissioner of revenue of credit certificates
issued under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 2.
Minnesota Statutes 2016, section 116J.8737, subdivision 12, is amended to read:
Subd. 12.
Sunset.
This section expires for taxable years beginning after December 31,
deleted text begin 2017deleted text end new text begin 2018new text end , except that reporting requirements under subdivision 6 and revocation of credits
under subdivision 7 remain in effect through deleted text begin 2019deleted text end new text begin 2020new text end for qualified investors and qualified
funds, and through deleted text begin 2021deleted text end new text begin 2022new text end for qualified small businesses, reporting requirements under
subdivision 9 remain in effect through deleted text begin 2022deleted text end new text begin 2023new text end , and the appropriation in subdivision 11
remains in effect through deleted text begin 2021deleted text end new text begin 2022new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 3.
Minnesota Statutes 2017 Supplement, section 290.01, subdivision 4a, is amended
to read:
Subd. 4a.
Financial institution.
(a) "Financial institution" means:
(1) any corporation or other business entity registered (i) under state law as a bank
holding company; (ii) under the federal Bank Holding Company Act of 1956, as amended;
or (iii) as a savings and loan holding company under the federal National Housing Act, as
amended;
(2) a national bank organized and existing as a national bank association pursuant to the
provisions of United States Code, title 12, chapter 2;
(3) a savings association or federal savings bank as defined in United States Code, title
12, section 1813(b)(1);
(4) any bank or thrift institution incorporated or organized under the laws of any state;
(5) any corporation organized under United States Code, title 12, sections 611 to 631;
(6) any agency or branch of a foreign depository as defined under United States Code,
title 12, section 3101;
(7) any corporation or other business entity that is more than 50 percent owned, directly
or indirectly, by any person or business entity described in clauses (1) to (6), other than an
insurance company taxable under chapter 297I;
(8) a corporation or other business entity that derives more than 50 percent of its total
gross income for financial accounting purposes from finance leases. For the purposes of
this clause, "gross income" means the average from the current tax year and immediately
preceding two years and excludes gross income from incidental or occasional transactions.
For purposes of this clause, "finance lease" means any lease transaction that is the functional
equivalent of an extension of credit and that transfers substantially all the benefits and risks
incident to the ownership of property, including any direct financing lease or leverage lease
that meets the criteria of Financial Accounting Standards Board Statement No. 13, accounting
for leases, or any other lease that is accounted for as financing by a lessor under generally
accepted accounting principles; or
(9) any other person or business entity, other than an insurance company deleted text begin taxable under
chapter 297Ideleted text end , that derives more than 50 percent of its gross income from activities that an
entity described in clauses (2) to (6) or (8) is authorized to transact. For the purposes of this
clause, gross income does not include income from nonrecurring, extraordinary items.
(b) The commissioner is authorized to exclude any person from the application of
paragraph (a), clause (9), if the person proves by clear and convincing evidence that the
person's income-producing activity is not in substantial competition with any person described
in paragraph (a), clauses (2) to (6) or (8).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016.
new text end
Sec. 4.
Minnesota Statutes 2016, section 290.01, is amended by adding a subdivision to
read:
new text begin Subd. 5c. new text end
new text begin Disqualified captive insurance company. new text end
new text begin
(a) "Captive insurance company"
means a company that:
new text end
new text begin
(1) is licensed as a captive insurance company under the laws of any state or foreign
country; or
new text end
new text begin
(2) derives less than 50 percent of its total premiums for the taxable year from sources
outside of the unitary business, as that term is used in section 290.17.
new text end
new text begin
(b) A captive insurance company is a "disqualified captive insurance company" if the
company:
new text end
new text begin
(1) pays less than 0.5 percent of its total premiums for the taxable year in tax under
chapter 297I or a comparable tax of another state; or
new text end
new text begin
(2) receives less than 50 percent of its gross receipts for the taxable year from premiums.
new text end
new text begin
(c) For purposes of this subdivision, "premiums" means amounts paid for arrangements
that constitute insurance for federal income tax purposes, but excludes return premiums,
premiums for reinsurance assumed from other insurance companies, and any other premiums
that are or would be exempt from taxation under section 297I.05 as a result of their type or
character, if the insurance was for business in Minnesota.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016.
new text end
Sec. 5.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 31. new text end
new text begin Disallowed section 280E expenses; medical cannabis manufacturers. new text end
new text begin
The
amount of expenses of a medical cannabis manufacturer, as defined under section 152.22,
subdivision 7, related to the business of medical cannabis under sections 152.21 to 152.37,
and not allowed for federal income tax purposes under section 280E of the Internal Revenue
Code is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 6.
Minnesota Statutes 2016, section 290.0134, is amended by adding a subdivision
to read:
new text begin Subd. 18. new text end
new text begin Disallowed section 280E expenses; medical cannabis manufacturers. new text end
new text begin
The
amount of expenses of a medical cannabis manufacturer, as defined under section 152.22,
subdivision 7, related to the business of medical cannabis under sections 152.21 to 152.37,
and not allowed for federal income tax purposes under section 280E of the Internal Revenue
Code is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 7.
Minnesota Statutes 2017 Supplement, section 290.05, subdivision 1, is amended
to read:
Subdivision 1.
Exempt entities.
The following corporations, individuals, estates, trusts,
and organizations shall be exempted from taxation under this chapter, provided that every
such person or corporation claiming exemption under this chapter, in whole or in part, must
establish to the satisfaction of the commissioner the taxable status of any income or activity:
(a) corporations, individuals, estates, and trusts engaged in the business of mining or
producing iron ore and mining, producing, or refining other ores, metals, and minerals, the
mining, production, or refining of which is subject to the occupation tax imposed by section
298.01; but if any such corporation, individual, estate, or trust engages in any other business
or activity or has income from any property not used in such business it shall be subject to
this tax computed on the net income from such property or such other business or activity.
Royalty shall not be considered as income from the business of mining or producing iron
ore within the meaning of this section;
(b) the United States of America, the state of Minnesota or any political subdivision of
either agencies or instrumentalities, whether engaged in the discharge of governmental or
proprietary functions; and
(c) any insurance company, deleted text begin as defined in section 290.17, subdivision 4, paragraph (j),
but including any insurance company licensed and domiciled in another state that grants,
on a reciprocal basis, exemption from retaliatory taxesdeleted text end new text begin other than a disqualified captive
insurance companynew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016.
new text end
Sec. 8.
Minnesota Statutes 2016, section 290.0685, subdivision 1, is amended to read:
Subdivision 1.
Credit allowed.
(a) An new text begin eligible new text end individual is allowed a credit against the
tax imposed by this chapter equal to $2,000 for each deleted text begin birth for which a certificate of birth
resulting in stillbirth has been issued under section 144.2151deleted text end new text begin stillbirthnew text end . The credit under this
section is allowed only in the taxable year in which the stillbirth occurred deleted text begin and if the child
would have been a dependent of the taxpayer as defined in section 152 of the Internal
Revenue Codedeleted text end .
(b) For a deleted text begin nonresident ordeleted text end part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2015.
new text end
Sec. 9.
Minnesota Statutes 2016, section 290.0685, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have the
meanings given, unless the context clearly indicates otherwise.
new text end
new text begin
(b) "Certificate of birth resulting in stillbirth" means the printed certificate of birth
resulting in stillbirth issued under section 144.2151 or for a stillbirth occurring in another
state or country a similar certificate issued under that state's or country's law that documents
that the still birth occurred.
new text end
new text begin
(c) "Eligible individual" means an individual who is:
new text end
new text begin
(1)(i) a resident; or
new text end
new text begin
(ii) the nonresident spouse of a resident who is a member of armed forces of the United
States or the United Nations; and
new text end
new text begin
(2)(i) the individual who gave birth resulting in stillbirth and is listed as a parent on the
certificate of birth resulting in stillbirth; or
new text end
new text begin
(ii) the individual who gave birth resulting in stillbirth for a birth outside of this state
for which no certificate of birth resulting in stillbirth was issued.
new text end
new text begin
(d) "Stillbirth" means a birth for which a fetal death report would be required under
section 144.222, subdivision 1, if the birth occurred in this state.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2015.
new text end
Sec. 10.
Minnesota Statutes 2017 Supplement, section 290.17, subdivision 4, is amended
to read:
Subd. 4.
Unitary business principle.
(a) If a trade or business conducted wholly within
this state or partly within and partly without this state is part of a unitary business, the entire
income of the unitary business is subject to apportionment pursuant to section 290.191.
Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary business is
considered to be derived from any particular source and none may be allocated to a particular
place except as provided by the applicable apportionment formula. The provisions of this
subdivision do not apply to business income subject to subdivision 5, income of an insurance
company, or income of an investment company determined under section 290.36.
(b) The term "unitary business" means business activities or operations which result in
a flow of value between them. The term may be applied within a single legal entity or
between multiple entities and without regard to whether each entity is a sole proprietorship,
a corporation, a partnership or a trust.
(c) Unity is presumed whenever there is unity of ownership, operation, and use, evidenced
by centralized management or executive force, centralized purchasing, advertising,
accounting, or other controlled interaction, but the absence of these centralized activities
will not necessarily evidence a nonunitary business. Unity is also presumed when business
activities or operations are of mutual benefit, dependent upon or contributory to one another,
either individually or as a group.
(d) Where a business operation conducted in Minnesota is owned by a business entity
that carries on business activity outside the state different in kind from that conducted within
this state, and the other business is conducted entirely outside the state, it is presumed that
the two business operations are unitary in nature, interrelated, connected, and interdependent
unless it can be shown to the contrary.
(e) Unity of ownership does not exist when two or more corporations are involved unless
more than 50 percent of the voting stock of each corporation is directly or indirectly owned
by a common owner or by common owners, either corporate or noncorporate, or by one or
more of the member corporations of the group. For this purpose, the term "voting stock"
shall include membership interests of mutual insurance holding companies formed under
section 66A.40.
(f) The net income and apportionment factors under section 290.191 or 290.20 of foreign
corporations and other foreign entitiesnew text begin , but excluding a disqualified captive insurance
company,new text end which are part of a unitary business shall not be included in the net income or
the apportionment factors of the unitary business; except that the income and apportionment
factors of a foreign entity, other than an entity treated as a C corporation for federal income
tax purposes, that are included in the federal taxable income, as defined in section 63 of the
Internal Revenue Code as amended through the date named in section 290.01, subdivision
19, of a domestic corporation, domestic entity, or individual must be included in determining
net income and the factors to be used in the apportionment of net income pursuant to section
290.191 or 290.20. A foreign corporation or other foreign entity which is not included on
a combined report and which is required to file a return under this chapter shall file on a
separate return basis.
(g) For purposes of determining the net income of a unitary business and the factors to
be used in the apportionment of net income pursuant to section 290.191 or 290.20, there
must be included only the income and apportionment factors of domestic corporations or
other domestic entities that are determined to be part of the unitary business pursuant to this
subdivision, notwithstanding that foreign corporations or other foreign entities might be
included in the unitary business; except that the income and apportionment factors of a
foreign entity, other than an entity treated as a C corporation for federal income tax purposes,
that is included in the federal taxable income, as defined in section 63 of the Internal Revenue
Code as amended through the date named in section 290.01, subdivision 19, of a domestic
corporation, domestic entity, or individual must be included in determining net income and
the factors to be used in the apportionment of net income pursuant to section 290.191 or
290.20.
(h) Each corporation or other entity, except a sole proprietorship, that is part of a unitary
business must file combined reports as the commissioner determines. On the reports, all
intercompany transactions between entities included pursuant to paragraph (g) must be
eliminated and the entire net income of the unitary business determined in accordance with
this subdivision is apportioned among the entities by using each entity's Minnesota factors
for apportionment purposes in the numerators of the apportionment formula and the total
factors for apportionment purposes of all entities included pursuant to paragraph (g) in the
denominators of the apportionment formula. Except as otherwise provided by paragraph
(f), all sales of the unitary business made within this state pursuant to section 290.191 or
290.20 must be included on the combined report of a corporation or other entity that is a
member of the unitary business and is subject to the jurisdiction of this state to impose tax
under this chapter.
(i) If a corporation has been divested from a unitary business and is included in a
combined report for a fractional part of the common accounting period of the combined
report:
(1) its income includable in the combined report is its income incurred for that part of
the year determined by proration or separate accounting; and
(2) its sales, property, and payroll included in the apportionment formula must be prorated
or accounted for separately.
(j) For purposes of this subdivision, "insurance company" means an insurance company,
as defined in section 290.01, subdivision 5b, that isdeleted text begin :
deleted text end
deleted text begin
(1) licensed to engage in the business of insurance in Minnesota pursuant to chapter
60A; or
deleted text end
deleted text begin
(2) domiciled and licensed to engage in the business of insurance in another state or
country that imposes retaliatory taxes, fines, deposits, penalties, licenses, or fees and that
does not grant, on a reciprocal basis, exemption from such retaliatory taxes to insurance
companies or their agents domiciled in Minnesota.
deleted text end
deleted text begin (k) For purposes of this subdivision, "retaliatory taxes" means taxes imposed on insurance
companies organized in another state or country that result from the fact that an insurance
company organized in the taxing jurisdiction and doing business in the other jurisdiction is
subject to taxes, fines, deposits, penalties, licenses, or fees in an amount exceeding that
imposed by the taxing jurisdiction upon an insurance company organized in the other state
or country and doing business to the same extent in the taxing jurisdictiondeleted text end new text begin not a disqualified
captive insurance companynew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016.
new text end
Sec. 11.
Minnesota Statutes 2016, section 291.03, subdivision 8, is amended to read:
Subd. 8.
Definitions.
(a) For purposes of this section, the following terms have the
meanings given in this subdivision.
(b) "Family member" means a family member as defined in section 2032A(e)(2) of the
Internal Revenue Code, or a trust whose present beneficiaries are all family members as
defined in section 2032A(e)(2) of the Internal Revenue Code.
(c) "Qualified heir" means a family member who acquired qualified property upon the
death of the decedent and satisfies the requirement under subdivision 9, clause deleted text begin (7)deleted text end new text begin (8)new text end , or
subdivision 10, clause (5), for the property.
(d) "Qualified property" means qualified small business property under subdivision 9
and qualified farm property under subdivision 10.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end
Sec. 12.
Minnesota Statutes 2017 Supplement, section 291.03, subdivision 9, is amended
to read:
Subd. 9.
Qualified small business property.
Property satisfying all of the following
requirements is qualified small business property:
(1) The value of the property was included in the federal adjusted taxable estate.
(2) The property consists of the assets of a trade or business or shares of stock or other
ownership interests in a corporation or other entity engaged in a trade or business. Shares
of stock in a corporation or an ownership interest in another type of entity do not qualify
under this subdivision if the shares or ownership interests are traded on a public stock
exchange at any time during the three-year period ending on the decedent's date of death.
For purposes of this subdivision, an ownership interest includes the interest the decedent is
deemed to own under deleted text begin sectionsdeleted text end new text begin sectionnew text end 2036, 2037, deleted text begin anddeleted text end 2038new text begin , 2040, or 2044new text end of the Internal
Revenue Code.
(3) During the taxable year that ended before the decedent's death, the trade or business
must not have been a passive activity within the meaning of section 469(c) of the Internal
Revenue Code, and the decedent or the decedent's spouse must have materially participated
in the trade or business within the meaning of section 469(h) of the Internal Revenue Code,
excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided
by United States Treasury Department regulation that substitutes material participation in
prior taxable years for material participation in the taxable year that ended before the
decedent's death.
(4) The gross annual sales of the trade or business were $10,000,000 or less for the last
taxable year that ended before the date of the death of the decedent.
(5) The property does not include:
(i) cash;
(ii) cash equivalents;
(iii) publicly traded securities; or
(iv) any assets not used in the operation of the trade or business.
(6) For property consisting of shares of stock or other ownership interests in an entity,
the value of items described in clause (5) must be excluded in the valuation of the decedent's
interest in the entity.
(7) The decedentnew text begin or the decedent's spousenew text end continuously owned the property,new text begin or an
undivided or joint interest in the property,new text end including property the decedentnew text begin or the decedent's
spousenew text end is deemed to own under deleted text begin sectionsdeleted text end new text begin sectionnew text end 2036, 2037, deleted text begin anddeleted text end 2038new text begin , 2040, or 2044new text end of
the Internal Revenue Code,new text begin or under subdivision 1d,new text end for the three-year period ending on the
date of death of the decedent. In the case of a sole proprietor, if the property replaced similar
property within the three-year period, the replacement property will be treated as having
been owned for the three-year period ending on the date of death of the decedent.new text begin For the
purposes of the three-year holding period under this clause, any ownership by the decedent's
spouse, whether the spouse predeceases or survives the decedent, is attributed to the decedent.
new text end
(8) For three years following the date of death of the decedent, the trade or business is
not a passive activity within the meaning of section 469(c) of the Internal Revenue Code,
and a family member materially participates in the operation of the trade or business within
the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
of the Internal Revenue Code and any other provision provided by United States Treasury
Department regulation that substitutes material participation in prior taxable years for
material participation in the three years following the date of death of the decedent.
(9) The estate and the qualified heir elect to treat the property as qualified small business
property and agree, in the form prescribed by the commissioner, to pay the recapture tax
under subdivision 11, if applicable.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after December 31, 2017.
new text end
Sec. 13.
Minnesota Statutes 2016, section 291.03, subdivision 10, is amended to read:
Subd. 10.
Qualified farm property.
Property satisfying all of the following requirements
is qualified farm property:
(1) The value of the property was included in the federal adjusted taxable estate.
(2) The property consists of agricultural land and is owned by a person or entity that is
either not subject to or is in compliance with section 500.24.
(3) For property taxes payable in the taxable year of the decedent's death, the property
is classified as class 2a property under section 273.13, subdivision 23, and is classified as
agricultural homestead, agricultural relative homestead, or special agricultural homestead
under section 273.124.
(4) The decedentnew text begin or the decedent's spousenew text end continuously owned the property,new text begin or an
undivided or joint interest in the property,new text end including property the decedentnew text begin or the decedent's
spousenew text end is deemed to own under deleted text begin sectionsdeleted text end new text begin sectionnew text end 2036, 2037, deleted text begin anddeleted text end 2038new text begin , 2040, or 2044new text end of
the Internal Revenue Code,new text begin or under subdivision 1d,new text end for the three-year period ending on the
date of death of the decedent either by ownership of the agricultural land or pursuant to
holding an interest in an entity that is not subject to or is in compliance with section 500.24.new text begin
For the purposes of the three-year holding period under this clause, any ownership by the
decedent's spouse, whether the spouse predeceases or survives the decedent, is attributed
to the decedent.
new text end
(5) The property is classified for property tax purposes as class 2a property under section
273.13, subdivision 23, for three years following the date of death of the decedent.
(6) The estate and the qualified heir elect to treat the property as qualified farm property
and agree, in a form prescribed by the commissioner, to pay the recapture tax under
subdivision 11, if applicable.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after December 31, 2017.
new text end
Sec. 14.
Minnesota Statutes 2017 Supplement, section 291.03, subdivision 11, is amended
to read:
Subd. 11.
Recapture tax.
(a) If, within three years after the decedent's death and before
the death of the qualified heir, the qualified heir disposes of any interest in the qualified
property, other than by a disposition to a family member, or a family member ceases to
satisfy the requirement under subdivision 9, clause deleted text begin (7)deleted text end new text begin (8)new text end ; or 10, clause (5), an additional
estate tax is imposed on the property. In the case of a sole proprietor, if the qualified heir
replaces qualified small business property excluded under subdivision 9 with similar property,
then the qualified heir will not be treated as having disposed of an interest in the qualified
property.
(b) The amount of the additional tax equals the amount of the deleted text begin exclusiondeleted text end new text begin subtractionnew text end
claimed by the estate under new text begin section 291.016, subdivision 3, for qualified property as defined
in new text end subdivision 8, paragraph (d), multiplied by 16 percent.
(c) The additional tax under this subdivision is due on the day which is six months after
the date of the disposition or cessation in paragraph (a).
(d) The tax under this subdivision does not apply to the acquisition of title or possession
of the qualified property by a federal, state, or local government unit, or any other entity
with the power of eminent domain for a public purpose, as defined in section 117.025,
subdivision 11, within the three-year holding period.
(e) This subdivision shall not apply as a result of any of the following:
(1) a portion of qualified farm property consisting of less than one-fifth of the acreage
of the property is reclassified as class 2b property under section 273.13, subdivision 23, and
the qualified heir has not substantially altered the reclassified property during the three-year
holding period; or
(2) a portion of qualified farm property classified as 2a property at the death of the
decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a residence,
garage, and immediately surrounding one acre of land is reclassified as 4bb property during
the three-year holding period, and the qualified heir has not substantially altered the property.
new text begin
(f) This paragraph applies only to estates of decedents dying after June 30, 2011, and
before January 1, 2017, for which no tax liability was reported on the final estate tax return.
For purposes of estates qualifying under this paragraph, the amount of the subtraction
claimed by the estate for purposes of calculating the tax under paragraph (b) is deemed to
be the minimum amount of the subtraction necessary to reduce the amount of estate tax to
zero, without regard to the amount actually claimed on the final estate tax return. The
provisions of this paragraph expire effective January 1, 2020.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
The provisions of this section adding paragraph (f) are effective
retroactively for estates of decedents dying after June 30, 2011, and before January 1, 2017,
and claims for refund of recapture tax may be made under a process established by the
commissioner for estates entitled to refunds under the section. The authority to file claims
for refunds under these provisions expires on January 1, 2020.
new text end
Sec. 15. new text begin APPLICATION OF ANGEL TAX CREDIT FOR TAXABLE YEAR 2018.
new text end
new text begin
Applications for (1) certification as a qualified small business, qualified investor, or
qualified fund under Minnesota Statutes, section 116J.8737, subdivisions 2, 3, and 4, and
(2) the credit under Minnesota Statutes, section 116J.8737, subdivision 5, for taxable year
2018 must be made available on the Department of Employment and Economic
Development's Web site within 30 days of the day following final enactment of this act.
The provisions of Minnesota Statutes, section 116J.8737, generally apply to the taxable
year 2018 extension of the credit in sections 1 and 2.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 4
SALES AND USE TAXES
Section 1.
Minnesota Statutes 2016, section 297A.70, subdivision 7, is amended to read:
Subd. 7.
Hospitals, outpatient surgical centers, and critical access dental providers.
(a) Sales, except for those listed in paragraph deleted text begin (d)deleted text end new text begin (e)new text end , to a hospital are exempt, if the items
purchased are used in providing hospital services. For purposes of this subdivision, "hospital"
means a hospital organized and operated for charitable purposes within the meaning of
section 501(c)(3) of the Internal Revenue Code, and licensed under chapter 144 or by any
other jurisdiction, and "hospital services" are services authorized or required to be performed
by a "hospital" under chapter 144.
(b) Sales, except for those listed in paragraph deleted text begin (d)deleted text end new text begin (e)new text end , to an outpatient surgical center are
exempt, if the items purchased are used in providing outpatient surgical services. For purposes
of this subdivision, "outpatient surgical center" means an outpatient surgical center organized
and operated for charitable purposes within the meaning of section 501(c)(3) of the Internal
Revenue Code, and licensed under chapter 144 or by any other jurisdiction. For the purposes
of this subdivision, "outpatient surgical services" means: (1) services authorized or required
to be performed by an outpatient surgical center under chapter 144; and (2) urgent care. For
purposes of this subdivision, "urgent care" means health services furnished to a person
whose medical condition is sufficiently acute to require treatment unavailable through, or
inappropriate to be provided by, a clinic or physician's office, but not so acute as to require
treatment in a hospital emergency room.
(c) Sales, except for those listed in paragraph deleted text begin (d)deleted text end new text begin (e)new text end , to a critical access dental provider
are exempt, if the items purchased are used in providing critical access dental care services.
For the purposes of this subdivision, "critical access dental provider" means a dentist or
dental clinic that qualifies under section 256B.76, subdivision 4, paragraph (b), and, in the
previous calendar year, had no more than 15 percent of its patients covered by private dental
insurance.
new text begin
(d) Sales, except for those listed in paragraph (e), to a qualifying medical facility are
exempt, if the items are purchased or used in providing medical services. For purposes of
this subdivision, "qualifying medical facility" means a medical facility as defined in section
469.1812, subdivision 2a, that has been granted an abatement of the state general tax under
section 469.1817.
new text end
deleted text begin (d)deleted text end new text begin (e)new text end This exemption does not apply to the following products and services:
(1) purchases made by a clinic, physician's office, or any other medical facility not
operating as a hospital, outpatient surgical center, new text begin qualifying medical facility, new text end or critical
access dental provider, even though the clinic, office, or facility may be owned and operated
by a hospital, outpatient surgical center, new text begin qualifying medical facility, new text end or critical access dental
provider;
(2) sales under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared
food, candy, and soft drinks;
(3) building and construction materials used in constructing buildings or facilities that
will not be used principally by the hospital, outpatient surgical center,new text begin qualifying medical
facility,new text end or critical access dental provider;
(4) 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 hospital, outpatient surgical center, new text begin qualifying medical facility, new text end or critical access
dental provider; or
(5) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11.
deleted text begin (e)deleted text end new text begin (f)new text end 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.
deleted text begin (f)deleted text end new text begin (g)new text end An entity that contains both a hospital and a nonprofit unit may claim this
exemption on purchases made for both the hospital and nonprofit unit provided that:
(1) the nonprofit unit would have qualified for exemption under subdivision 4; and
(2) the items purchased would have qualified for the exemption.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2018.
new text end
Sec. 2.
Minnesota Statutes 2017 Supplement, section 297A.70, subdivision 20, is amended
to read:
Subd. 20.
Ice arenas and rinks.
Sales to organizations that exist primarily for the purpose
of new text begin owning or new text end operating ice arenas or rinks that are new text begin (1) new text end part of new text begin either new text end the Duluth Heritage
Sports Centernew text begin or the David M. Thaler Sports Center;new text end and new text begin (2) new text end are used for youth and high
school programsnew text begin ,new text end are exempt if the organization is a private, nonprofit corporation exempt
from federal income taxation under section 501(c)(3) of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2018.
new text end
Sec. 3.
Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision to
read:
new text begin Subd. 21. new text end
new text begin Nonprofit conservation clubs. new text end
new text begin
Sales to nonprofit conservation clubs are
exempt. For purposes of this subdivision, a "nonprofit conservation club" means an
organization exempt under section 501(c)(3) of the Internal Revenue Code that provides
instruction, training, and facilities for shooting handguns or rifles.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2018.
new text end
Sec. 4.
Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision to
read:
new text begin Subd. 51. new text end
new text begin Public safety facilities. new text end
new text begin
Materials and supplies used or consumed in and
equipment incorporated into construction or remodeling of the following public safety
facilities are exempt:
new text end
new text begin
(1) the construction of a new fire station, which includes firefighting and public safety
training facilities, in the city of Inver Grove Heights;
new text end
new text begin
(2) the construction of a new fire station or the remodeling and expansion of an existing
fire station in the city of Virginia;
new text end
new text begin
(3) the construction of a new fire station on the campus of the Minnetonka City Hall;
and
new text end
new text begin
(4) the remodeling and expansion of an existing police and fire station in Minnetonka
to accommodate its use as a police station.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after the
day following final enactment and before January 1, 2021.
new text end
Sec. 5.
Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision to
read:
new text begin Subd. 52. new text end
new text begin Nonprofit snowmobile clubs. new text end
new text begin
Building materials and supplies purchased by
a nonprofit snowmobile club and used or consumed to construct, reconstruct, or maintain
or improve state or grant-in-aid snowmobile trails are exempt. A nonprofit snowmobile
club is eligible for the exemption under this subdivision if it received, in the current year
or in the previous three-year period, a state grant-in-aid grant administered by the Department
of Natural Resources by applying for the grant with a local unit of government sponsor.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2018.
new text end
Sec. 6.
Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision to
read:
new text begin Subd. 53. new text end
new text begin Medical facility in underserved area. new text end
new text begin
Materials and supplies used or
consumed in, and equipment incorporated into, the construction or improvement of real
property that has been granted an abatement of the state general tax under section 469.1817
are exempt.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2018.
new text end
Sec. 7.
Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision to
read:
new text begin Subd. 54. new text end
new text begin Properties destroyed by fire. new text end
new text begin
Building materials and supplies used or
consumed in, and equipment incorporated into, the construction or replacement of real
property affected by, and restaurant equipment to replace equipment destroyed in, the fire
on March 11, 2018, in the city of Mazeppa are exempt. The tax must be imposed and
collected as if the rate under section 297A.62, subdivision 1, applied and then refunded in
the manner provided in section 297A.75. For purposes of this subdivision, "restaurant
equipment" includes durable equipment used in a restaurant for food storage, preparation,
and serving.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for sales and purchases
made after March 11, 2018, and before January 1, 2021.
new text end
Sec. 8.
Minnesota Statutes 2017 Supplement, section 297A.75, subdivision 1, is amended
to read:
Subdivision 1.
Tax collected.
The tax on the gross receipts from the sale of the following
exempt items must be imposed and collected as if the sale were taxable and the rate under
section 297A.62, subdivision 1, applied. The exempt items include:
(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;
(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14;
(3) building materials for correctional facilities under section 297A.71, subdivision 3;
(4) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;
(5) elevators and building materials exempt under section 297A.71, subdivision 12;
(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;
(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;
(8) equipment and materials used for the generation, transmission, and distribution of
electrical energy and an aerial camera package exempt under section 297A.68, subdivision
37;
(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);
(10) materials, supplies, and equipment for construction or improvement of projects and
facilities under section 297A.71, subdivision 40;
(11) materials, supplies, and equipment for construction, improvement, or expansion
ofdeleted text begin :
deleted text end
deleted text begin
(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014,
section 297A.71, subdivision 42;
deleted text end
deleted text begin (ii)deleted text end a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
45;
deleted text begin
(iii) a research and development facility exempt under Minnesota Statutes 2014, section
297A.71, subdivision 46; and
deleted text end
deleted text begin
(iv) an industrial measurement manufacturing and controls facility exempt under
Minnesota Statutes 2014, section 297A.71, subdivision 47;
deleted text end
(12) enterprise information technology equipment and computer software for use in a
qualified data center exempt under section 297A.68, subdivision 42;
(13) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
(14) items purchased for use in providing critical access dental services exempt under
section 297A.70, subdivision 7, paragraph (c);
(15) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44;
(16) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, deleted text begin subdivisiondeleted text end new text begin subdivisionsnew text end 49new text begin and 54new text end ; and
(17) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 50, paragraph (b).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2018.
new text end
Sec. 9.
Minnesota Statutes 2016, section 477A.016, is amended to read:
477A.016 NEW TAXES PROHIBITED.
new text begin (a) new text end No county, city, town or other taxing authority shall increase a present tax or impose
a new tax on sales or income.
new text begin
(b) No county, city, town, or other taxing authority shall increase a present excise tax
or fee or impose a new excise tax or fee on either:
new text end
new text begin
(1) the manufacture, distribution, wholesale, or retail sale of food, based on volume of
product sold, product sales value, or the type of product manufactured, distributed, or sold;
or
new text end
new text begin
(2) any container used for transporting, protecting, or consuming food.
new text end
new text begin
(c) For purposes of this section:
new text end
new text begin
(1) "food" has the meaning given in section 34A.01, subdivision 4; and
new text end
new text begin
(2) "container" means a bottle, cup, can, bag, or other packaging that is made from
plastic, aluminum, glass, cardboard, or other material.
new text end
new text begin
(d) This section does not apply to reasonable license fees lawfully imposed by a county,
city, town, or other licensing authority in the exercise of its regulatory authority to license
a trade, profession, or business.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Laws 2017, First Special Session chapter 1, article 3, section 32, the effective
date, is amended to read:
EFFECTIVE DATE.
Paragraph (a) is effective retroactively for sales and purchases
made after September 30, 2016, and before January 1, deleted text begin 2019deleted text end new text begin 2022new text end . Paragraph (b) is effective
for sales and purchases made after September 30, 2016, and before July 1, 2017.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 11. new text begin MUNICIPALLY OWNED WATER TREATMENT FACILITY; CITY OF
ELKO NEW MARKET.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption. new text end
new text begin
Materials and supplies used or consumed in and equipment
incorporated into a water treatment facility owned and operated by the city of Elko New
Market are exempt from taxation under Minnesota Statutes, chapter 297A, regardless of
whether purchased by the city or a contractor, subcontractor, or builder. All purchases for
this facility must be made after June 1, 2014, and before June 1, 2016.
new text end
new text begin Subd. 2. new text end
new text begin Refund. new text end
new text begin
The tax on purchases exempt under subdivision 1 must be imposed
and collected as if the rate under Minnesota Statutes, section 297A.62, applied, and then
refunded in the manner provided in Minnesota Statutes, section 297A.75. The applicant
must be the city of Elko New Market. Notwithstanding Minnesota Statutes, section 289A.40,
subdivision 5, the city of Elko New Market may apply directly to the commissioner of
revenue for a refund of the tax paid on items exempt under subdivision 1, the application
must be made by December 31, 2018, in the form and manner required by the commissioner,
and provide sufficient information so the commissioner can verify the amount paid. If the
tax was paid by a contractor, subcontractor, or builder, the contractor, subcontractor, or
builder must furnish to the refund applicant a statement including the cost of the exempt
items and the taxes paid on the items. Interest must be paid on the refund at the rate in
Minnesota Statutes, section 270C.405, from 90 days after the refund claim is filed with the
commissioner.
new text end
new text begin Subd. 3. new text end
new text begin Appropriation. new text end
new text begin
The amount required to make the refunds under this section
is appropriated to the commissioner of revenue.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for purchases made after
June 1, 2014, and before June 1, 2016.
new text end
ARTICLE 5
PROPERTY TAXES
Section 1.
Minnesota Statutes 2016, section 138.053, is amended to read:
138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.
The governing body of any home rule charter or statutory city or town may annually
appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
market value, derived from ad valorem taxes on property or other revenues, to be paid to
the historical society of its respective new text begin city, town, or new text end county to be used for the promotion of
historical work and to aid in defraying the expenses of carrying on the historical work in
the county. No city or town may appropriate any funds for the benefit of any historical
society unless the society is affiliated with and approved by the Minnesota Historical Society.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2016, section 197.603, subdivision 2, is amended to read:
Subd. 2.
Records; data privacy.
Pursuant to chapter 13 the county veterans service
officer is the responsible authority with respect to all records in the officer's custody. The
data on clients' applications for assistance is private data on individuals, as defined in section
13.02, subdivision 12.new text begin The county veterans service officer may disclose to the county assessor
private data necessary to determine a client's eligibility for the disabled veteran's homestead
market value exclusion under section 273.13, subdivision 34.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to
read:
new text begin Subd. 102. new text end
new text begin Certain property owned by an Indian tribe. new text end
new text begin
(a) Property is exempt that:
new text end
new text begin
(1) is located in a city of the first class with a population of more than 380,000 as of the
2010 federal census;
new text end
new text begin
(2) was on January 1, 2016, and is for the current assessment, owned by a federally
recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota;
and
new text end
new text begin
(3) is used exclusively as a pharmacy.
new text end
new text begin
(b) Property that qualifies for the exemption under this subdivision is limited to parcels
and structures that do not exceed, in the aggregate, 4,000 square feet. Property acquired for
single-family housing, market-rate apartments, agriculture, or forestry does not qualify for
this exemption. For assessment year 2018 only, an exemption application under this
subdivision is due by July 1, 2018. The exemption created by this subdivision expires with
taxes payable in 2028.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2019
and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2016, section 273.124, subdivision 3a, is amended to read:
Subd. 3a.
Manufactured home park cooperative.
(a) When a manufactured home park
is owned by a corporation or association organized under chapter 308A or 308B, and each
person who owns a share or shares in the corporation or association is entitled to occupy a
lot within the park, the corporation or association may claim homestead treatment for the
park. Each lot must be designated by legal description or number, and each lot is limited to
not more than one-half acre of land.
(b) The manufactured home park shall be entitled to homestead treatment if all of the
following criteria are met:
(1) the occupant or the cooperative corporation or association is paying the ad valorem
property taxes and any special assessments levied against the land and structure either
directly, or indirectly through dues to the corporation or association; and
(2) the corporation or association organized under chapter 308A or 308B is wholly
owned by persons having a right to occupy a lot owned by the corporation or association.
(c) A charitable corporation, organized under the laws of Minnesota with no outstanding
stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status,
qualifies for homestead treatment with respect to a manufactured home park if its members
hold residential participation warrants entitling them to occupy a lot in the manufactured
home park.
(d) "Homestead treatment" under this subdivision means the classification rate provided
for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause
(5), item (ii)deleted text begin .deleted text end new text begin , andnew text end the homestead market value exclusion under section 273.13, subdivision
35, does not apply deleted text begin and the property taxes assessed against the park shall not be included in
the determination of taxes payable for rent paid under section 290A.03deleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with claims for taxes payable
in 2019.
new text end
Sec. 5.
Minnesota Statutes 2016, section 273.124, subdivision 8, is amended to read:
Subd. 8.
Homestead owned by or leased to family farm corporation, joint farm
venture, limited liability company, or partnership.
(a) Each family farm corporation;
each joint family farm venture; and each limited liability company or partnership which
operates a family farm; is entitled to class 1b under section 273.13, subdivision 22, paragraph
(b), or class 2a assessment for one homestead occupied by a shareholder, member, or partner
thereof who is residing on the land, and actively engaged in farming of the land owned by
the family farm corporation, joint family farm venture, limited liability company, or
partnership. Homestead treatment applies even ifnew text begin :
new text end
new text begin (1)new text end legal title to the property is in the name of the family farm corporation, joint family
farm venture, limited liability company, or partnership, and not in the name of the person
residing on itdeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(2) the family farm is operated by a business entity other than the business entity that
owns the land, provided that both business entities have the same owners.
new text end
"Family farm corporation," "family farm," and "partnership operating a family farm"
have the meanings given in section 500.24, except that the number of allowable shareholders,
members, or partners under this subdivision shall not exceed 12. "Limited liability company"
has the meaning contained in sections 322B.03, subdivision 28, or 322C.0102, subdivision
12, and 500.24, subdivision 2, paragraphs (l) and (m). "Joint family farm venture" means
a cooperative agreement among two or more farm enterprises authorized to operate a family
farm under section 500.24.
new text begin
"Business entity" means a corporation, joint venture, partnership, or limited liability
company within the meaning of this paragraph.
new text end
(b) In addition to property specified in paragraph (a), any other residences owned by
family farm corporations, joint family farm ventures, limited liability companies, or
partnerships described in paragraph (a) which are located on agricultural land and occupied
as homesteads by its shareholders, members, or partners who are actively engaged in farming
on behalf of that corporation, joint farm venture, limited liability company, or partnership
must also be assessed as class 2a property or as class 1b property under section 273.13.
(c) Agricultural property that is owned by a member, partner, or shareholder of a family
farm corporation or joint family farm venture, limited liability company operating a family
farm, or by a partnership operating a family farm and leased to the family farm corporation,
limited liability company, partnership, or joint farm venture, as defined in paragraph (a), is
eligible for classification as class 1b or class 2a under section 273.13, if the owner is actually
residing on the property, and is actually engaged in farming the land on behalf of that
corporation, joint farm venture, limited liability company, or partnership. This paragraph
applies without regard to any legal possession rights of the family farm corporation, joint
family farm venture, limited liability company, or partnership under the lease.
(d) Nonhomestead agricultural property that is owned by a family farm corporation,
joint farm venture, limited liability company, or partnership; and located not farther than
four townships or cities, or combination thereof, from agricultural land that is owned, and
used for the purposes of a homestead by an individual who is a shareholder, member, or
partner of the corporation, venture, company, or partnership; is entitled to receive the first
tier homestead classification rate on any remaining market value in the first homestead class
tier that is in excess of the market value of the shareholder's, member's, or partner's class 2
agricultural homestead property, if the owner, or someone acting on the owner's behalf
notifies the county assessor by July 1 that the property may be eligible under this paragraph
for the current assessment year, for taxes payable in the following year. As used in this
paragraph, "agricultural property" means property classified as 2a under section 273.13,
along with any contiguous property classified as 2b under section 273.13, if the contiguous
2a and 2b properties are under the same ownership.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessments beginning in 2018.
new text end
Sec. 6.
Minnesota Statutes 2016, section 273.124, subdivision 14, is amended to read:
Subd. 14.
Agricultural homesteads; special provisions.
(a) Real estate of less than ten
acres that is the homestead of its owner must be classified as class 2a under section 273.13,
subdivision 23, paragraph (a), if:
(1) the parcel on which the house is located is contiguous on at least two sides to (i)
agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
Service, or (iii) land administered by the Department of Natural Resources on which in lieu
taxes are paid under sections 477A.11 to 477A.14;
(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
acres;
(3) the noncontiguous land is located not farther than four townships or cities, or a
combination of townships or cities from the homestead; and
(4) the agricultural use value of the noncontiguous land and farm buildings is equal to
at least 50 percent of the market value of the house, garage, and one acre of land.
Homesteads initially classified as class 2a under the provisions of this paragraph shall
remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
properties, as long as the homestead remains under the same ownership, the owner owns a
noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
value qualifies under clause (4). Homestead classification under this paragraph is limited
to property that qualified under this paragraph for the 1998 assessment.
(b)(i) Agricultural property shall be classified as the owner's homestead, to the same
extent as other agricultural homestead property, if all of the following criteria are met:
(1) the agricultural property consists of at least 40 acres including undivided government
lots and correctional 40's;
(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner
or of the owner's spouse, is actively farming the agricultural property, either on the person's
own behalf as an individual or on behalf of a partnership operating a family farm, family
farm corporation, joint family farm venture, or limited liability company of which the person
is a partner, shareholder, or member;
(3) both the owner of the agricultural property and the person who is actively farming
the agricultural property under clause (2), are Minnesota residents;
(4) neither the owner nor the spouse of the owner claims another agricultural homestead
in Minnesota; and
(5) neither the owner nor the person actively farming the agricultural property lives
farther than four townships or cities, or a combination of four townships or cities, from the
agricultural property, except that if the owner or the owner's spouse is required to live in
employer-provided housing, the owner or owner's spouse, whichever is actively farming
the agricultural property, may live more than four townships or cities, or combination of
four townships or cities from the agricultural property.
The relationship under this paragraph may be either by blood or marriage.
(ii) deleted text begin Agricultural property held by a trustee under a trust is eligible for agricultural
homestead classification under this paragraph if the qualifications in clause (i) are met,
except that "owner" means the grantor of the trust.
deleted text end
deleted text begin (iii)deleted text end Property containing the residence of an owner who owns qualified property under
clause (i) shall be classified as part of the owner's agricultural homestead, if that property
is also used for noncommercial storage or drying of agricultural crops.
deleted text begin (iv)deleted text end new text begin (iii)new text end As used in this paragraph, "agricultural property" means class 2a property and
any class 2b property that is contiguous to and under the same ownership as the class 2a
property.
(c) Noncontiguous land shall be included as part of a homestead under section 273.13,
subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached
land is located in the same township or city, or not farther than four townships or cities or
combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
and, if the homestead is located in another county, the taxpayer must also notify the assessor
of the other county.
(d) Agricultural land used for purposes of a homestead and actively farmed by a person
holding a vested remainder interest in it must be classified as a homestead under section
273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other
dwellings on the land used for purposes of a homestead by persons holding vested remainder
interests who are actively engaged in farming the property, and up to one acre of the land
surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
must also be assessed class 2a.
(e) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the April 1997 floods;
(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
Wilkin;
(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1997 assessment year and continue to be used for
agricultural purposes;
(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.
(f) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified
agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by a March 29, 1998, tornado;
(2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur,
Nicollet, Nobles, or Rice;
(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1998 assessment year;
(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to a March 29,
1998, tornado, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
owner must notify the assessor by December 1, 1998. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.
(g) Agricultural property of a family farm corporation, joint family farm venture, family
farm limited liability company, or partnership operating a family farm as described under
subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
property, if all of the following criteria are met:
(1) the property consists of at least 40 acres including undivided government lots and
correctional 40's;
(2) a shareholder, member, or partner of that entity is actively farming the agricultural
property;
(3) that shareholder, member, or partner who is actively farming the agricultural property
is a Minnesota resident;
(4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
member, or partner claims another agricultural homestead in Minnesota; and
(5) that shareholder, member, or partner does not live farther than four townships or
cities, or a combination of four townships or cities, from the agricultural property.
new text begin
Homestead treatment applies under this paragraph even if:
new text end
new text begin
(i) the shareholder, member, or partner of that entity is actively farming the agricultural
property on the shareholder's, member's, or partner's own behalf; or
new text end
new text begin
(ii) the family farm is operated by a business entity other than the business entity that
owns the land, provided that both business entities have the same owners. For purposes of
this paragraph, "business entity" means a corporation, joint venture, partnership, or limited
liability company within the meaning of subdivision 8, paragraph (a).
new text end
Homestead treatment applies under this paragraph for property leased to a family farm
corporation, joint farm venture, limited liability company, or partnership operating a family
farm if legal title to the property is in the name of an individual who is a member, shareholder,
or partner in the entity.
(h) To be eligible for the special agricultural homestead under this subdivision, an initial
full application must be submitted to the county assessor where the property is located.
Owners and the persons who are actively farming the property shall be required to complete
only a one-page abbreviated version of the application in each subsequent year provided
that none of the following items have changed since the initial application:
(1) the day-to-day operation, administration, and financial risks remain the same;
(2) the owners and the persons actively farming the property continue to live within the
four townships or city criteria and are Minnesota residents;
(3) the same operator of the agricultural property is listed with the Farm Service Agency;
(4) a Schedule F or equivalent income tax form was filed for the most recent year;
(5) the property's acreage is unchanged; and
(6) none of the property's acres have been enrolled in a federal or state farm program
since the initial application.
The owners and any persons who are actively farming the property must include the
appropriate Social Security numbers, and sign and date the application. If any of the specified
information has changed since the full application was filed, the owner must notify the
assessor, and must complete a new application to determine if the property continues to
qualify for the special agricultural homestead. The commissioner of revenue shall prepare
a standard reapplication form for use by the assessors.
(i) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified
agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by the August 2007 floods;
(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
Wabasha, or Winona;
(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2007 assessment year;
(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to the August 2007
floods, and the owner furnishes the assessor any information deemed necessary by the
assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
owner must notify the assessor by December 1, 2008. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.
(j) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the March 2009 floods;
(2) the property is located in the county of Marshall;
(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2008 assessment year and continue to be used for
agricultural purposes;
(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning for property taxes payable in
2019.
new text end
Sec. 7.
Minnesota Statutes 2016, section 273.124, subdivision 21, is amended to read:
Subd. 21.
Trust property; homestead.
Real or personal propertynew text begin , including agricultural
property,new text end held by a trustee under a trust is eligible for classification as homestead property
if the property satisfies the requirements of paragraph (a), (b), (c), deleted text begin ordeleted text end (d)new text begin , or (e)new text end .
(a) The grantor or surviving spouse of the grantor of the trust occupies and uses the
property as a homestead.
(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 a homestead.
(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) a shareholder, member,
or partner of the corporation, joint farm venture, limited liability company, or partnership
occupies and uses the property as a homestead; or (2) the property is at least 40 acres,
including undivided government lots and correctional 40's, and a 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.
(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; or, a person who received the homestead classification for taxes payable in 2005
under paragraph (c) who does not qualify under paragraph (c) for taxes payable in 2006 or
thereafter but who continues to qualify under paragraph (c) as it existed for taxes payable
in 2005.
new text begin
(e) The qualifications under subdivision 14, paragraph (b), clause (i), are met. For
purposes of this paragraph, "owner" means the grantor of the trust or the surviving spouse
of the grantor.
new text end
new text begin
(f) For purposes of this subdivision, the following terms have the meanings given them:
new text end
new text begin
(1) "agricultural property" means the house, garage, other farm buildings and structures,
and agricultural land;
new text end
new text begin
(2) "agricultural land" has the meaning given in section 273.13, subdivision 23, except
that the phrases "owned by same person" or "under the same ownership" as used in that
subdivision mean and include contiguous tax parcels owned by:
new text end
new text begin
(i) an individual and a trust of which the individual, the individual's spouse, or the
individual's deceased spouse is the grantor; or
new text end
new text begin
(ii) different trusts of which the grantors of each trust are any combination of an
individual, the individual's spouse, or the individual's deceased spouse; and
new text end
deleted text begin For purposes of this subdivision,deleted text end new text begin (3)new text end "grantor" deleted text begin is defined asdeleted text end new text begin meansnew text end 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.
new text begin
(g) Noncontiguous agricultural land is included as part of a homestead under this
subdivision, only if the homestead is classified as class 2a, as defined in section 273.13,
subdivision 23, and the detached land is located in the same township or city, or not farther
than four townships or cities or combination thereof from the homestead. Any taxpayer of
these noncontiguous agricultural lands must notify the county assessor by December 15 for
taxes payable in the following year that the noncontiguous agricultural land is part of the
taxpayer's homestead, and, if the homestead is located in another county, the taxpayer must
also notify the assessor of the other county.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning for property taxes payable in
2019.
new text end
Sec. 8.
Minnesota Statutes 2016, section 273.124, is amended by adding a subdivision to
read:
new text begin Subd. 23. new text end
new text begin Fractional homesteads. new text end
new text begin
In the case of property that is classified as part
homestead and part nonhomestead solely because not all the owners occupy or farm the
property, not all the owners have qualifying relatives occupying or farming the property,
or not all the spouses of owners occupy the property, the portions of property classified as
part homestead and part nonhomestead must correspond to the ownership percentages that
each owner has in the property, as determined by the land records in the county recorder's
office or registrar of titles. If the ownership percentages of each owner cannot be determined
by reference to the land records, the portions of property classified as part homestead and
part nonhomestead must correspond to the ownership percentages each owner would have
if they each owned an equal share of the property.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessments beginning in 2018.
new text end
Sec. 9.
Minnesota Statutes 2016, section 273.1245, subdivision 2, is amended to read:
Subd. 2.
Disclosure.
The assessor shall disclose the data described in subdivision 1 to
the commissioner of revenue as provided by law. The assessor shall also disclose all or
portions of the data described in subdivision 1 tonew text begin :
new text end
new text begin (1)new text end the county treasurer solely for the purpose of proceeding under the Revenue Recapture
Act to recover personal property taxes owingnew text begin ; and
new text end
new text begin (2) the county veterans service officer for the purpose of determining a person's eligibility
for the disabled veteran's homestead market value exclusion under section 273.13, subdivision
34new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2017 Supplement, section 273.13, subdivision 22, is amended
to read:
Subd. 22.
Class 1.
(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.
The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.
(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:
(1) any person who is blind as defined in section 256D.35, or the blind person and the
blind person's spouse;
(2) any person who is permanently and totally disabled or by the disabled person and
the disabled person's spouse; or
(3) the surviving spouse of a permanently and totally disabled veteran homesteading a
property classified under this paragraph for taxes payable in 2008.
Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.
Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.
Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of .45 percent of its market value. The remaining market
value of class 1b property is classified as class 1a or class 2a property, whichever is
appropriate.
(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
the Department of Natural Resources, and is devoted to temporary and seasonal residential
occupancy for recreational purposes but not devoted to commercial purposes for more than
250 days in the year preceding the year of assessment, and that includes a portion used as
a homestead by the owner, which includes a dwelling occupied as a homestead by a
shareholder of a corporation that owns the resort, a partner in a partnership that owns the
resort, or a member of a limited liability company that owns the resort deleted text begin even ifdeleted text end new text begin , whethernew text end the
title to the homestead is held by the corporation, partnership, or limited liability companynew text begin ,
or by a shareholder of a corporation that owns the resort, a partner in a partnership that owns
the resort, or a member of a limited liability company that owns the resortnew text end . For purposes of
this paragraph, property is devoted to a commercial purpose on a specific day if any portion
of the property, excluding the portion used exclusively as a homestead, is used for residential
occupancy and a fee is charged for residential occupancy. Class 1c property 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 1c property must provide recreational activities such as the
rental of 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. Any unit in which the right to use the property is transferred to an individual
or entity by deeded interest, or the sale of shares or stock, no longer qualifies for class 1c
even though it may remain available for rent. A camping pad offered for rent by a property
that otherwise qualifies for class 1c is also class 1c, regardless of the term of the rental
agreement, as long as the use of the camping pad does not exceed 250 days. If the same
owner owns two separate parcels that are located in the same township, and one of those
properties is classified as a class 1c property and the other would be eligible to be classified
as a class 1c property if it was used as the homestead of the owner, both properties will be
assessed as a single class 1c property; for purposes of this sentence, properties are deemed
to be owned by the same owner if each of them is owned by a limited liability company,
and both limited liability companies have the same membership. The portion of the property
used as a homestead is class 1a property under paragraph (a). The remainder of the property
is classified as follows: the first $600,000 of market value is tier I, the next $1,700,000 of
market value is tier II, and any remaining market value is tier III. The classification rates
for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners
of real and personal property devoted to temporary and seasonal residential occupancy for
recreation purposes in which all or a portion of the property was devoted to commercial
purposes for not more than 250 days in the year preceding the year of assessment desiring
classification as class 1c, mustnew text begin , by January 15 of the assessment year,new text end submit a declaration
to the assessor designatingnew text begin : (1)new text end the cabins or units occupied for 250 days or less in the year
preceding the year of assessment deleted text begin by January 15 of the assessment yeardeleted text end new text begin ; and (2) the portion
of the resort used as a homestead and the owner of the homestead under the titlenew text end . Those
cabins or units and a proportionate share of the land on which they are located must be
designated as class 1c as otherwise provided. The remainder of the cabins or units and a
proportionate share of the land on which they are located must be designated as class 3a
commercial. The owner of property desiring designation as class 1c property must provide
guest registers or other records demonstrating that the units for which class 1c 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 1c.
(d) Class 1d property includes structures that meet all of the following criteria:
(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;
(2) the structure is occupied exclusively by seasonal farm workers during the time when
they work on that farm, and the occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of farm equipment and produce
does not disqualify the property from classification under this paragraph;
(3) the structure meets all applicable health and safety requirements for the appropriate
season; and
(4) the structure is not salable as residential property because it does not comply with
local ordinances relating to location in relation to streets or roads.
The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2020.
new text end
Sec. 11.
Minnesota Statutes 2017 Supplement, 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 classification 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 classification rate of 0.5
percent of market value. The remaining property over the first tier has a classification rate
of one percent of market value. For purposes of this subdivision, the "first tier valuation
limit of agricultural homestead property" and "first tier" means the limit certified under
section 273.11, subdivision 23.
(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
are agricultural land and buildings. Class 2a property has a classification rate of one percent
of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
property must also include any property that would otherwise be classified as 2b, but is
interspersed with class 2a property, including but not limited to sloughs, wooded wind
shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
and other similar land that is impractical for the assessor to value separately from the rest
of the property or that is unlikely to be able to be sold separately from the rest of the property.
An assessor may classify the part of a parcel described in this subdivision that is used
for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that
are unplatted real estate, rural in character and not used for agricultural purposes, including
land used for growing trees for timber, lumber, and wood and wood products, that is not
improved with a structure. The presence of a minor, ancillary nonresidential structure as
defined by the commissioner of revenue does not disqualify the property from classification
under this paragraph. Any parcel of 20 acres or more improved with a structure that is not
a minor, ancillary nonresidential structure must be split-classified, and ten acres must be
assigned to the split parcel containing the structure. Class 2b property has a classification
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 classification rate of .65 percent, provided that the
owner of the property must apply to the assessor in order for the property to initially qualify
for the reduced rate and provide the information required by the assessor to verify that the
property qualifies for the reduced rate. If the assessor receives the application and information
before May 1 in an assessment year, the property qualifies beginning with that assessment
year. If the assessor receives the application and information after April 30 in an assessment
year, the property may not qualify until the next assessment year. The commissioner of
natural resources must concur that the land is qualified. The commissioner of natural
resources shall annually provide county assessors verification information on a timely basis.
The presence of a minor, ancillary nonresidential structure as defined by the commissioner
of revenue does not disqualify the property from classification under this paragraph.
(e) Agricultural land as used in this section means:
(1) contiguous acreage of ten acres or more, used during the preceding year for
agricultural purposes; or
(2) contiguous acreage used during the preceding year for an intensive livestock or
poultry confinement operation, provided that land used only for pasturing or grazing does
not qualify under this clause.
"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 new text begin (i) new text end enrollment in a local
conservation program or the Reinvest in Minnesota program under sections 103F.501 to
103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198
or a similar state or federal conservation program if the property was classified as agricultural
deleted text begin (i)deleted text end new text begin (A)new text end under this subdivision for taxes payable in 2003 because of its enrollment in a
qualifying program and the land remains enrolled or deleted text begin (ii)deleted text end new text begin (B)new text end in the year prior to its enrollmentnew text begin ,
or (ii) use of land, not to exceed the greater of three acres or ten percent of the total land
area, to provide environmental benefits such as buffer strips, old growth forest restoration
or retention, or retention ponds to prevent soil erosion. For the purposes of item (ii), "total
land area" means contiguous parcels under common ownershipnew text end . For purposes of this section,
a "local conservation program" means a program administered by a town, statutory or home
rule charter city, or county, including a watershed district, water management organization,
or soil and water conservation district, in which landowners voluntarily enroll land and
receive incentive payments equal to at least $50 per acre in exchange for use or other
restrictions placed on the land. In order for property to qualify under the local conservation
program provision, a taxpayer must apply to the assessor by February 1 of the assessment
year and must submit the information required by the assessor, including but not limited to
a copy of the program requirements, the specific agreement between the land owner and
the local agency, if applicable, and a map of the conservation area. Agricultural classification
shall not be based upon the market value of any residential structures on the parcel or
contiguous parcels under the same ownership.
new text begin
"Agricultural purposes" also includes land consisting of a holding pond designed to
prevent runoff onto a divided four-lane expressway that is located at least 150 feet above
the expressway, as certified by the local soil and water conservation district in accordance
with USDA Field Office Technical Guide conservation practice standards, provided that
the land is located outside the metropolitan area as defined in section 473.121, and was
classified as agricultural in assessment year 2017.
new text end
"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
of, a set of contiguous tax parcels under that section that are owned by the same person.
(f) Agricultural land under this section also includes:
(1) contiguous acreage that is less than ten acres in size and exclusively used in the
preceding year for raising or cultivating agricultural products; or
(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the
contiguous acreage exclusive of the house, garage, and surrounding one acre of land was
used in the preceding year for one or more of the following three uses:
(i) for an intensive grain drying or storage operation, or for intensive machinery or
equipment storage activities used to support agricultural activities on other parcels of property
operated by the same farming entity;
(ii) as a nursery, provided that only those acres used intensively to produce nursery stock
are considered agricultural land; or
(iii) for intensive market farming; for purposes of this paragraph, "market farming"
means the cultivation of one or more fruits or vegetables or production of animal or other
agricultural products for sale to local markets by the farmer or an organization with which
the farmer is affiliated.
"Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
described in section 272.193, or all of a set of contiguous tax parcels under that section that
are owned by the same person.
(g) Land shall be classified as agricultural even if all or a portion of the agricultural use
of that property is the leasing to, or use by another person for agricultural purposes.
Classification under this subdivision is not determinative for qualifying under section
273.111.
(h) The property classification under this section supersedes, for property tax purposes
only, any locally administered agricultural policies or land use restrictions that define
minimum or maximum farm acreage.
(i) The term "agricultural products" as used in this subdivision includes production for
sale of:
(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees,
and apiary products by the owner;
(2) aquacultural products for sale and consumption, as defined under section 17.47, if
the aquaculture occurs on land zoned for agricultural use;
(3) the commercial boarding of horses, which may include related horse training and
riding instruction, if the boarding is done on property that is also used for raising pasture
to graze horses or raising or cultivating other agricultural products as defined in clause (1);
(4) property which is owned and operated by nonprofit organizations used for equestrian
activities, excluding racing;
(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
97A.105, provided that the annual licensing report to the Department of Natural Resources,
which must be submitted annually by March 30 to the assessor, indicates that at least 500
birds were raised or used for breeding stock on the property during the preceding year and
that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a
shooting preserve licensed under section 97A.115;
(6) insects primarily bred to be used as food for animals;
(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold
for timber, lumber, wood, or wood products; and
(8) maple syrup taken from trees grown by a person licensed by the Minnesota
Department of Agriculture under chapter 28A as a food processor.
(j) If a parcel used for agricultural purposes is also used for commercial or industrial
purposes, including but not limited to:
(1) wholesale and retail sales;
(2) processing of raw agricultural products or other goods;
(3) warehousing or storage of processed goods; and
(4) office facilities for the support of the activities enumerated in clauses (1), (2), and
(3),
the assessor shall classify the part of the parcel used for agricultural purposes as class 1b,
2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use.
The grading, sorting, and packaging of raw agricultural products for first sale is considered
an agricultural purpose. A greenhouse or other building where horticultural or nursery
products are grown that is also used for the conduct of retail sales must be classified as
agricultural if it is primarily used for the growing of horticultural or nursery products from
seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products.
Use of a greenhouse or building only for the display of already grown horticultural or nursery
products does not qualify as an agricultural purpose.
(k) The assessor shall determine and list separately on the records the market value of
the homestead dwelling and the one acre of land on which that dwelling is located. If any
farm buildings or structures are located on this homesteaded acre of land, their market value
shall not be included in this separate determination.
(l) Class 2d airport landing area consists of a landing area or public access area of a
privately owned public use airport. It has a classification rate of one percent of market value.
To qualify for classification under this paragraph, a privately owned public use airport must
be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing
area" means that part of a privately owned public use airport properly cleared, regularly
maintained, and made available to the public for use by aircraft and includes runways,
taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing
area also includes land underlying both the primary surface and the approach surfaces that
comply with all of the following:
(i) the land is properly cleared and regularly maintained for the primary purposes of the
landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities
for servicing, repair, or maintenance of aircraft is not included as a landing area;
(ii) the land is part of the airport property; and
(iii) the land is not used for commercial or residential purposes.
The land contained in a landing area under this paragraph must be described and certified
by the commissioner of transportation. The certification is effective until it is modified, or
until the airport or landing area no longer meets the requirements of this paragraph. For
purposes of this paragraph, "public access area" means property used as an aircraft parking
ramp, apron, or storage hangar, or an arrival and departure building in connection with the
airport.
(m) Class 2e consists of land with a commercial aggregate deposit that is not actively
being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
located in a county that has elected to opt-out of the aggregate preservation program as
provided in section 273.1115, subdivision 6. It has a classification rate of one percent of
market value. To qualify for classification under this paragraph, the property must be at
least ten contiguous acres in size and the owner of the property must record with the county
recorder of the county in which the property is located an affidavit containing:
(1) a legal description of the property;
(2) a disclosure that the property contains a commercial aggregate deposit that is not
actively being mined but is present on the entire parcel enrolled;
(3) documentation that the conditional use under the county or local zoning ordinance
of this property is for mining; and
(4) documentation that a permit has been issued by the local unit of government or the
mining activity is allowed under local ordinance. The disclosure must include a statement
from a registered professional geologist, engineer, or soil scientist delineating the deposit
and certifying that it is a commercial aggregate deposit.
For purposes of this section and section 273.1115, "commercial aggregate deposit"
means a deposit that will yield crushed stone or sand and gravel that is suitable for use as
a construction aggregate; and "actively mined" means the removal of top soil and overburden
in preparation for excavation or excavation of a commercial deposit.
(n) When any portion of the property under this subdivision or subdivision 22 begins to
be actively mined, the owner must file a supplemental affidavit within 60 days from the
day any aggregate is removed stating the number of acres of the property that is actively
being mined. The acres actively being mined must be (1) valued and classified under
subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
resource preservation property tax program under section 273.1115, if the land was enrolled
in that program. Copies of the original affidavit and all supplemental affidavits must be
filed with the county assessor, the local zoning administrator, and the Department of Natural
Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
time a subsequent portion of the property is actively mined, provided that the minimum
acreage change is five acres, even if the actual mining activity constitutes less than five
acres.
(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not
rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in
section 14.386 concerning exempt rules do not apply.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2019 and thereafter.
new text end
Sec. 12.
Minnesota Statutes 2017 Supplement, section 273.13, subdivision 34, is amended
to read:
Subd. 34.
Homestead of disabled veteran or family caregiver.
(a) All or a portion of
the market value of property owned by a veteran and serving as the veteran's homestead
under this section is excluded in determining the property's taxable market value if the
veteran has a service-connected disability of 70 percent or more as certified by the United
States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the
veteran must have been honorably discharged from the United States armed forces, as
indicated by United States Government Form DD214 or other official military discharge
papers.
(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded,
except as provided in clause (2); and
(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.
(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause
(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds
the legal or beneficial title to the homestead and permanently resides there, the exclusion
shall carry over to the benefit of the veteran's spouse for the current taxes payable year and
for eight additional taxes payable years or until such time as the spouse remarries, or sells,
transfers, or otherwise disposes of the property, whichever comes firstnew text begin , except as otherwise
provided in paragraph (n)new text end . Qualification under this paragraph requires an application under
paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's
marital status, ownership of the property, or use of the property as a permanent residence.
(d) If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service-connected cause while serving honorably in active service, as
indicated on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is entitled to the
benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such
time as the spouse remarries or sells, transfers, or otherwise disposes of the property,
whichever comes firstnew text begin , except as otherwise provided in paragraph (n)new text end .
(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
for under paragraph (b).
(f) In the case of an agricultural homestead, only the portion of the property consisting
of the house and garage and immediately surrounding one acre of land qualifies for the
valuation exclusion under this subdivision.
(g) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 35, or classification under subdivision 22,
paragraph (b).
(h) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by deleted text begin July 1deleted text end new text begin December 15new text end of the first assessment year for which the
exclusion is sought. For an application received after deleted text begin July 1deleted text end new text begin December 15new text end , the exclusion
shall become effective for the following assessment year. Except as provided in paragraph
(c), the owner of a property that has been accepted for a valuation exclusion must notify
the assessor if there is a change in ownership of the property or in the use of the property
as a homestead.new text begin When a property qualifying for a market value exclusion under this
subdivision is sold or transferred, the exclusion must be removed for the current assessment
year, provided that the new owner may file a claim for an exclusion if eligible.
new text end
(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.
(j) For purposes of this subdivision:
(1) "active service" has the meaning given in section 190.05;
(2) "own" means that the person's name is present as an owner on the property deed;
(3) "primary family caregiver" means a person who is approved by the secretary of the
United States Department of Veterans Affairs for assistance as the primary provider of
personal care services for an eligible veteran under the Program of Comprehensive Assistance
for Family Caregivers, codified as United States Code, title 38, section 1720G; and
(4) "veteran" has the meaning given the term in section 197.447.
(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion
under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit
under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries
or sells, transfers, or otherwise disposes of the propertynew text begin , except as otherwise provided in
paragraph (n),new text end if:
(1) the spouse files a first-time application within two years of the death of the service
member or by June 1, 2019, whichever is later;
(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
homestead and permanently resides there;
(3) the veteran met the honorable discharge requirements of paragraph (a); and
(4) the United States Department of Veterans Affairs certifies that:
(i) the veteran met the total (100 percent) and permanent disability requirement under
paragraph (b), clause (2); or
(ii) the spouse has been awarded dependency and indemnity compensation.
(l) The purpose of this provision of law providing a level of homestead property tax
relief for gravely disabled veterans, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.
(m) By July 1, the county veterans service officer must certify the disability rating and
permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
new text begin
(n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds
the legal or beneficial title to the property may continue to receive the exclusion for a
property other than the property for which the exclusion was initially granted until the spouse
remarries or sells, transfers, or otherwise disposes of the property, provided that:
new text end
new text begin
(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed
under this paragraph;
new text end
new text begin
(2) the spouse holds the legal or beneficial title to the property for which the continuation
of the exclusion is sought under this paragraph, and permanently resides there;
new text end
new text begin
(3) the estimated market value of the property for which the exclusion is sought under
this paragraph is less than or equal to the estimated market value of the property that first
received the exclusion, based on the value of each property on the date of the sale of the
property that first received the exclusion; and
new text end
new text begin
(4) the spouse has not previously received the benefit under this paragraph for a property
other than the property for which the exclusion is sought.
new text end
new text begin
The exclusion for a spouse under this paragraph and paragraph (c), (d), or (k) may not
exceed a total of eight taxes payable years.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessments in 2018, for
taxes payable in 2019.
new text end
Sec. 13.
Minnesota Statutes 2016, section 273.13, subdivision 35, is amended to read:
Subd. 35.
Homestead market value exclusion.
(a) Prior to determining a property's
net tax capacity under this section, property classified as class 1a or 1b under subdivision
22, and the portion of property classified as class 2a under subdivision 23 consisting of the
house, garage, and surrounding one acre of land, shall be eligible for a market value exclusion
as determined under paragraph (b).
(b) For a homestead valued at $76,000 or less, the exclusion is 40 percent of market
value. For a homestead valued between $76,000 and $413,800, the exclusion is $30,400
minus nine percent of the valuation over $76,000. For a homestead valued at $413,800 or
more, there is no valuation exclusion. The valuation exclusion shall be rounded to the nearest
whole dollar, and may not be less than zero.
(c) Any valuation exclusions or adjustments under section 273.11 shall be applied prior
to determining the amount of the valuation exclusion under this subdivision.
(d) In the case of a property that is classified as part homestead and part nonhomestead,
(i) the exclusion shall apply only to the homestead portion of the property, but (ii) if a portion
of a property is classified as nonhomestead solely because not all the owners occupy the
property, not all the owners have qualifying relatives occupying the property, or solely
because not all the spouses of owners occupy the property, the exclusion amount shall be
initially computed as if that nonhomestead portion were also in the homestead class and
then prorated to the owner-occupant's percentage of ownershipnew text begin , as determined by section
273.124, subdivision 23new text end . For the purpose of this section, when an owner-occupant's spouse
does not occupy the property, the percentage of ownership for the owner-occupant spouse
is one-half of the couple's ownership percentage.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2019 and thereafter.
new text end
Sec. 14.
Minnesota Statutes 2017 Supplement, section 273.1384, subdivision 2, is amended
to read:
Subd. 2.
Agricultural homestead market value credit.
Property classified as agricultural
homestead under section 273.13, subdivision 23, paragraph (a), is eligible for an agricultural
credit. The credit is computed using the property's agricultural credit market value, defined
for this purpose as the property's market value excluding the market value of the house,
garage, and immediately surrounding one acre of land. The credit is equal to 0.3 percent of
the first $115,000 of the property's agricultural credit market value plus 0.1 percent of the
property's agricultural credit market value in excess of $115,000, subject to a maximum
credit of $490new text begin for a full agricultural homesteadnew text end . In the case of property that is classified as
part homestead and part nonhomestead solely because not all the owners occupy or farm
the property, not all the owners have qualifying relatives occupying or farming the property,
or solely because not all the spouses of owners occupy the property, the credit is computed
on the amount of agricultural credit market value corresponding to the new text begin owner-occupant's
new text end percentage of deleted text begin homestead. the percentage of homestead is equal to 100 divided by the number
of owners of the property, or, in the case of a trust, the number of grantors of the trust that
owns the property.deleted text end new text begin ownership, as determined by section 273.124, subdivision 23, and the
maximum credit equals $490 multiplied by the percentage of ownership.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2019 and thereafter.
new text end
Sec. 15.
Minnesota Statutes 2016, section 275.025, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Natural gas pipeline. new text end
new text begin
(a) The county must abate the state general levy on
personal property that is part of an intrastate natural gas transportation or distribution pipeline
system if:
new text end
new text begin
(1) construction of the pipeline system commenced after January 1, 2018; and
new text end
new text begin
(2) the pipeline system provides service to an area:
new text end
new text begin
(i) outside the seven-county metropolitan area, as defined in section 473.121, subdivision
3; and
new text end
new text begin
(ii) in which the majority of households or businesses lacked access to natural gas
distribution systems as of January 1, 2018.
new text end
new text begin
(b) In the first year that a taxpayer seeks an abatement under this subdivision, the taxpayer
must file an application with the commissioner of revenue by March 1 of the assessment
year on a form prescribed by the commissioner.
new text end
new text begin
(c) The commissioner of revenue must notify any affected county in the first year that
a pipeline system becomes eligible for an abatement under this subdivision.
new text end
new text begin
(d) The abatement under this subdivision applies for a period not to exceed 12 years,
provided that once a property no longer qualifies, it may not subsequently qualify for an
abatement under this subdivision.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2020.
new text end
Sec. 16.
Minnesota Statutes 2016, section 275.025, is amended by adding a subdivision
to read:
new text begin Subd. 7. new text end
new text begin Medical facility in underserved area. new text end
new text begin
The state general levy for any property
qualifying under section 469.1817 is abated. The net tax capacity of the property must be
included in the definition of commercial-industrial tax capacity for the purposes of
determining the state general levy tax rate under subdivision 4.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2019.
new text end
Sec. 17.
Minnesota Statutes 2016, section 282.01, subdivision 6, is amended to read:
Subd. 6.
Duties of commissioner after sale.
new text begin (a) new text end When any sale has been made by the
county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to the
commissioner of revenue such information relating to such sale, on such forms as the
commissioner of revenue may prescribe as will enable the commissioner of revenue to
prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale is
on terms; and not later than October 31 of each year the county auditor shall submit to the
commissioner of revenue a statement of all instances wherein any payment of principal,
interest, or current taxes on lands held under certificate, due or to be paid during the preceding
calendar years, are still outstanding at the time such certificate is made. When such statement
shows that a purchaser or the purchaser's assignee is in default, the commissioner of revenue
may instruct the county board of the county in which the land is located to cancel said
certificate of sale in the manner provided by subdivision 5, provided that upon
recommendation of the county board, and where the circumstances are such that the
commissioner of revenue after investigation is satisfied that the purchaser has made every
effort reasonable to make payment of both the annual installment and said taxes, and that
there has been no willful neglect on the part of the purchaser in meeting these obligations,
then the commissioner of revenue may extend the time for the payment for such period as
the commissioner may deem warranted, not to exceed one year. On payment in full of the
purchase price, appropriate conveyance in fee, in such form as may be prescribed by the
attorney general, shall be issued by the commissioner of revenue, which conveyance must
be recorded by the county and shall have the force and effect of a patent from the state
subject to easements and restrictions of record at the date of the tax judgment sale, including,
but without limitation, permits for telephone and electric power lines either by underground
cable or conduit or otherwise, sewer and water lines, highways, railroads, and pipe lines for
gas, liquids, or solids in suspension.
new text begin
(b) The commissioner of revenue shall issue an appropriate conveyance in fee when
approval from the county auditor is given based upon written confirmation from a licensed
closing agent, title insurer, or title insurance agent as specified in section 82.641. For purposes
of this paragraph, "written confirmation" means a written commitment or approval that the
funding for the conveyance is held in an escrow account available for disbursement upon
delivery of a conveyance. The conveyance issued by the commissioner of revenue shall not
be effective as a conveyance until it is recorded. The conveyance shall be issued to the
county auditor where the land is located. Upon receipt of the conveyance, the county auditor
shall hold the conveyance until the conveyance is requested from a licensed closing agent,
title insurer, or title insurance agent to settle and close on the conveyance. If a request for
the conveyance is not made within 30 days of the date the conveyance is issued by the
commissioner of revenue, the county auditor shall return the conveyance to the commissioner.
If the conveyance is delivered to the licensed closing agent, title insurer, or title insurance
agent and the closing does not occur within ten days of the request, the licensed closing
agent, title insurer, or title insurance agent shall immediately return the conveyance to the
county auditor and, upon receipt, the county auditor shall return the conveyance to the
commissioner of revenue. The commissioner of revenue shall cancel and destroy all
conveyances returned by the county auditor pursuant to this subdivision. The licensed closing
agent, title insurer, or title insurance agent must promptly record the conveyance after the
closing and must deliver an attested or certified copy to the county auditor and to the grantee
or grantees named on the conveyance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for conveyances issued by the
commissioner of revenue after December 31, 2018.
new text end
Sec. 18.
Minnesota Statutes 2017 Supplement, section 290A.03, subdivision 13, is amended
to read:
Subd. 13.
Property taxes payable.
"Property taxes payable" means the property tax
exclusive of special assessments, penalties, and interest payable on a claimant's homestead
after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
and any other state paid property tax credits in any calendar year, and after any refund
claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the
year that the property tax is payable. In the case of a claimant who makes ground lease
payments, "property taxes payable" includes the amount of the payments directly attributable
to the property taxes assessed against the parcel on which the house is located. Regardless
of the limitations in section 280A(c)(5) of the Internal Revenue Code, "property taxes
payable" must be apportioned or reduced for the use of a portion of the claimant's homestead
for a business purpose if the claimant deducts any business depreciation expenses for the
use of a portion of the homestead or deducts expenses under section 280A of the Internal
Revenue Code for a business operated in the claimant's homestead. For homesteads which
are manufactured homes as defined in section 273.125, subdivision 8, deleted text begin and for homesteads
which aredeleted text end new text begin including manufactured homes located in a manufactured home community owned
by a cooperative organized under chapter 308A or 308B, andnew text end park trailers taxed as
manufactured homes under section 168.012, subdivision 9, "property taxes payable" shall
also include 17 percent of the gross rent paid in the preceding year for the site on which the
homestead is located. When a homestead is owned by two or more persons as joint tenants
or tenants in common, such tenants shall determine between them which tenant may claim
the property taxes payable on the homestead. If they are unable to agree, the matter shall
be referred to the commissioner of revenue whose decision shall be final. Property taxes
are considered payable in the year prescribed by law for payment of the taxes.
In the case of a claim relating to "property taxes payable," the claimant must have owned
and occupied the homestead on January 2 of the year in which the tax is payable and (i) the
property must have been classified as homestead property pursuant to section 273.124, on
or before December 15 of the assessment year to which the "property taxes payable" relate;
or (ii) the claimant must provide documentation from the local assessor that application for
homestead classification has been made on or before December 15 of the year in which the
"property taxes payable" were payable and that the assessor has approved the application.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with claims for taxes payable
in 2019.
new text end
Sec. 19.
Minnesota Statutes 2016, section 290B.04, subdivision 1, is amended to read:
Subdivision 1.
Initial application.
(a) A taxpayer meeting the program qualifications
under section 290B.03 may apply to the commissioner of revenue for the deferral of taxes.
Applications are due on or before deleted text begin Julydeleted text end new text begin Novembernew text end 1 for deferral of any of the following
year's property taxes. new text begin A taxpayer may request an early notification of approval or denial at
any time. The commissioner must notify a taxpayer in writing of the reasons for an
application denial and that the application may be amended and resubmitted by the due date
specified in this subdivision. new text end A taxpayer may apply in the year in which the taxpayer becomes
65 years old, provided that no deferral of property taxes will be made until the calendar
year after the taxpayer becomes 65 years old. The application, which shall be prescribed
by the commissioner of revenue, shall include the following items and any other information
which the commissioner deems necessary:
(1) the name, address, and Social Security number of the owner or owners;
(2) a copy of the property tax statement for the current payable year for the homesteaded
property;
(3) the initial year of ownership and occupancy as a homestead;
(4) the owner's household income for the previous calendar year; and
(5) information on any mortgage loans or other amounts secured by mortgages or other
liens against the property, for which purpose the commissioner may require the applicant
to provide a copy of the mortgage note, the mortgage, or a statement of the balance owing
on the mortgage loan provided by the mortgage holder. The commissioner may require the
appropriate documents in connection with obtaining and confirming information on unpaid
amounts secured by other liens.
The application must state that program participation is voluntary. The application must
also state that the deferred amount depends directly on the applicant's household income,
and that program participation includes authorization for the annual deferred amount, the
cumulative deferral and interest that appear on each year's notice prepared by the county
under subdivision 6, is public data.
The application must state that program participants may claim the property tax refund
based on the full amount of property taxes eligible for the refund, including any deferred
amounts. The application must also state that property tax refunds will be used to offset any
deferral and interest under this program, and that any other amounts subject to revenue
recapture under section 270A.03, subdivision 7, will also be used to offset any deferral and
interest under this program.
(b) As part of the initial application process, the commissioner may require the applicant
to obtain at the applicant's own cost and submit:
(1) if the property is registered property under chapter 508 or 508A, a copy of the original
certificate of title in the possession of the county registrar of titles (sometimes referred to
as "condition of register"); or
(2) if the property is abstract property, a report prepared by a licensed abstracter showing
the last deed and any unsatisfied mortgages, liens, judgments, and state and federal tax lien
notices which were recorded on or after the date of that last deed with respect to the property
or to the applicant.
The certificate or report under clauses (1) and (2) need not include references to any
documents filed or recorded more than 40 years prior to the date of the certification or report.
The certification or report must be as of a date not more than 30 days prior to submission
of the application.
The commissioner may also require the county recorder or county registrar of the county
where the property is located to provide copies of recorded documents related to the applicant
or the property, for which the recorder or registrar shall not charge a fee. The commissioner
may use any information available to determine or verify eligibility under this section. The
household income from the application is private data on individuals as defined in section
13.02, subdivision 12.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for deferral of taxes
payable in 2019 and thereafter.
new text end
Sec. 20.
Minnesota Statutes 2016, section 469.171, subdivision 4, is amended to read:
Subd. 4.
Restriction.
The tax reductions provided by this section shall not apply to (1)
a facility the primary purpose of which is one of the following: deleted text begin retail food and beverage
services, automobile sales or service, ordeleted text end the provision of recreation or entertainment, or a
private or commercial golf course, country club, massage parlor, tennis club, skating facility
including roller skating, skateboard, and ice skating, racquet sports facility, including any
handball or racquetball court, hot tub facility, suntan facility, or racetrack; (2) property of
a public utility; (3) property used in the operation of a financial institution; (4) property
owned by a fraternal or veterans' organization; or (5) deleted text begin property of a business operating under
a franchise agreement that requires the business to be located in the state; except that tax
reductions may be provided to a retail food or beverage facility or an automobile sales or
service facility, or a businessdeleted text end new text begin a retail food or beverage facilitynew text end operating under a franchise
agreement that requires the business to be located in this state deleted text begin except for such a franchised
retail food or beverage facilitydeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
confirms the legislative intent of the amendment made by Laws 2012, chapter 294, article
2, section 25.
new text end
Sec. 21.
Minnesota Statutes 2016, section 469.1812, subdivision 1, is amended to read:
Subdivision 1.
Scope.
For purposes of sections 469.1812 to , the
following terms have the meanings given.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2019.
new text end
Sec. 22.
Minnesota Statutes 2016, section 469.1812, is amended by adding a subdivision
to read:
new text begin Subd. 2a. new text end
new text begin Medical facility. new text end
new text begin
"Medical facility" means:
new text end
new text begin
(1) an office, clinic, building, or portion of a building, the primary use of which is the
provision of primary or specialty health care services to patients on an outpatient basis, by
one or more state-licensed or registered health care providers;
new text end
new text begin
(2) a birth center licensed under section 144.615;
new text end
new text begin
(3) a hospital licensed under sections 144.50 to 144.56;
new text end
new text begin
(4) an urgent care clinic which provides treatment for medical conditions that are not
life-threatening or potentially permanently disabling and do not require critical or emergency
interventions; or
new text end
new text begin
(5) an outpatient surgical center licensed under section 144.55.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment for
taxes payable beginning in 2019 and for sales and purchases made after June 30, 2018.
new text end
Sec. 23.
Minnesota Statutes 2016, section 469.1812, is amended by adding a subdivision
to read:
new text begin Subd. 2b. new text end
new text begin Medically underserved county. new text end
new text begin
"Medically underserved county" means a
county, any portion of which is designated by the federal secretary of health and human
services as a medically underserved area or medically underserved population, as defined
under Code of Federal Regulations, title 42, section 51C.102. By December 15 of each year,
the commissioner of health must certify to the commissioner of revenue the counties that
are medically underserved. By December 31 of each year, the commissioner of revenue
must certify the list of medically underserved counties to county assessors, for assessments
in the following year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2018
for taxes payable in 2019. For assessment year 2018, the certification required to be made
by the commissioner of health must be made by June 1, 2018, and the certification required
to be made by the commissioner of revenue must be made by June 15, 2018.
new text end
Sec. 24.
new text begin
[469.1817] MEDICAL FACILITY TAX ABATEMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Qualification. new text end
new text begin
The state general tax under section 275.025 must be abated
by the county for any property or portion thereof containing a medical facility that has been
granted an abatement under section 469.1813, provided that:
new text end
new text begin
(1) the facility is located in a medically underserved county at the time the abatement
resolution is adopted;
new text end
new text begin
(2) the facility is not located in a metropolitan county as defined under section 473.121,
subdivision 4;
new text end
new text begin
(3) the resolution of one or more governing bodies granting the abatement specifies that
the facility addresses an underserved need for medical services in the area; and
new text end
new text begin
(4) both the county and the city or town are abating all taxes on the property containing
the facility for at least 15 years under section 469.1813, subdivision 2.
new text end
new text begin Subd. 2. new text end
new text begin Application. new text end
new text begin
A taxpayer seeking an abatement under this section must file an
application with the county assessor by March 1 of the first assessment year for which the
abatement is sought, on a form prescribed by the commissioner of revenue.
new text end
new text begin Subd. 3. new text end
new text begin Duration. new text end
new text begin
The state general tax is abated for 15 years.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2019.
new text end
Sec. 25.
Minnesota Statutes 2016, section 473H.08, subdivision 1, is amended to read:
Subdivision 1.
Till expiration started.
Agricultural preserves shall continue until deleted text begin either
deleted text end the landowner deleted text begin ordeleted text end new text begin ,new text end the authoritynew text begin , or a state agency or governmental unitnew text end initiates expiration
as provided in this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to any agricultural preserve where the previously required eight-year termination
period under Minnesota Statutes, section 473H.08, has not yet expired.
new text end
Sec. 26.
Minnesota Statutes 2016, section 473H.08, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Expiration for park and trail purposes. new text end
new text begin
(a) An agricultural preserve expires
immediately when a state agency or other governmental unit purchases the property or
obtains an easement over the property for the purpose of creating or expanding a public
trail or public park. This subdivision applies only to the portion of the agricultural preserve
acquired for trail or park purposes, and any portion of the property not acquired for trail or
park purposes shall remain an agricultural preserve, regardless if the remaining total acreage
is less than 40 acres.
new text end
new text begin
(b) The acquiring state agency or governmental unit shall give notice of the expiration
under paragraph (a) to the authority. The notice must specify the portion of the property
being removed from the agricultural preserve and the date on which that portion expires.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to any agricultural preserve where the previously required eight-year termination
period under Minnesota Statutes, section 473H.08, has not yet expired.
new text end
Sec. 27.
Minnesota Statutes 2016, section 473H.08, subdivision 4, is amended to read:
Subd. 4.
Notice to others.
Upon receipt of the notice provided in subdivision 2new text begin or 3anew text end ,
or upon notice served by the authority as provided in subdivision 3, the authority shall
forward the original notice to the county recorder for recording, or to the registrar of titles
if the land is registered, and shall notify the county auditor, county assessor, the Metropolitan
Council, and the county soil and water conservation district of the date of expiration.
Designation as an agricultural preserve and all benefits and limitations accruing through
sections 473H.02 to 473H.17 for the preserve shall cease on the date of expiration. The
restrictive covenant contained in the application shall terminate on the date of expiration.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to any agricultural preserve where the previously required eight-year termination
period under Minnesota Statutes, section 473H.08, has not yet expired.
new text end
Sec. 28.
Minnesota Statutes 2016, section 477A.013, subdivision 13, is amended to read:
Subd. 13.
Certified aid adjustments.
deleted text begin
(a) A city that received an aid base increase under
Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall have its
total aid under subdivision 9 increased by an amount equal to $150,000 for aids payable in
2014 through 2018.
deleted text end
deleted text begin (b)deleted text end new text begin (a)new text end A city that received an aid base increase under new text begin Minnesota Statutes 2012, new text end section
477A.011, subdivision 36, paragraph (r), shall have its total aid under subdivision 9 increased
by an amount equal to $160,000 for aids payable in 2014 and thereafter.
deleted text begin
(c) A city that received a temporary aid increase under Minnesota Statutes 2012, section
477A.011, subdivision 36, paragraph (o), shall have its total aid under subdivision 9 increased
by an amount equal to $1,000,000 for aids payable in 2014 only.
deleted text end
new text begin
(b) For aids payable in 2019 only, a city shall have its total aid under subdivision 9
increased by an amount equal to its aid decrease between aids payable in 2016 and 2017 if:
new text end
new text begin
(1) the city's aid decreased by more than $50,000 between aids payable in 2016 and
2017 under this section; and
new text end
new text begin
(2) the city's unmet need amount calculated for aids payable in 2017 exceeded its aids
payable in 2016.
new text end
new text begin
(c) The city of Lilydale shall have its total aid under subdivision 9 increased by $150,000
for aids payable in 2019 only.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2019.
new text end
Sec. 29.
Laws 2008, chapter 366, article 5, section 33, the effective date, as amended by
Laws 2013, chapter 143, article 4, section 35, is amended to read:
EFFECTIVE DATE.
This section is effective for taxes levied in 2008, payable in 2009,
and is repealed effective for taxes levied in deleted text begin 2018deleted text end new text begin 2023new text end , payable in deleted text begin 2019deleted text end new text begin 2024new text end , and thereafter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2019.
new text end
Sec. 30.
Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by Laws
2013, chapter 143, article 4, section 36, is amended to read:
Subdivision 1.
Agreement.
The city of Cloquet and Perch Lake Township, by resolution
of each of their governing bodies, may establish the Cloquet Area Fire and Ambulance
new text begin Special new text end Taxing District for the purpose of providing fire or ambulance services, or both,
throughout the district. In this section, "municipality" means home rule charter and statutory
cities, towns, and Indian tribes. The district may exercise all the powers relating to fire and
ambulance services of the municipalities that receive fire or ambulance services, or both,
from the district. Upon application, any other municipality may join the district with the
agreement of the municipalities that comprise the district at the time of its application to
join.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
new text end
Sec. 31.
Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:
Subd. 2.
Board.
The Cloquet Area Fire and Ambulance new text begin Special new text end Taxing District Board
is governed by a board made up initially of one or more elected officials of the governing
body of each participating municipality in the proportions set out in the establishing
resolution, subject to change as provided in the district's charter, if any, or in the district's
bylaws. Each municipality's representatives serve at the pleasure of that municipality's
governing body.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
new text end
Sec. 32.
Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by Laws
2013, chapter 143, article 4, section 37, is amended to read:
Subd. 3.
Tax.
The district board may impose a property tax on taxable property as
provided in this subdivisionnew text begin to pay the costs of providing fire or ambulance services, or
both, throughout the districtnew text end . The board shall annually determine the total amount of the
levy that is attributable to the cost of providing fire services and the cost of providing
ambulance services within the primary service area. For those municipalities that only
receive ambulance services, the costs for the provision of ambulance services shall be levied
against taxable property within those municipalities at a rate necessary not to exceed 0.019
percent of the estimated market value. For those municipalities that receive both fire and
ambulance services, the tax shall be imposed at a rate that does not exceed 0.2835 percent
of estimated market value.
When a member municipality opts to receive fire service from the district or an additional
municipality becomes a member of the district, the cost of providing fire services to that
community shall be determined by the board and added to the maximum levy amount.
Each county auditor of a county that contains a municipality subject to the tax under
this section must collect the tax and pay it to the Fire and Ambulance Special Taxing District.
The district may also impose other fees or charges as allowed by law for the provision of
fire and ambulance services.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
new text end
Sec. 33.
Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:
Subd. 4.
Public indebtedness.
The district may incur debt in the manner provided for
new text begin in Minnesota Statutes, chapter 475, and the district shall be considered new text end a municipality deleted text begin by
Minnesota Statutes, chapter 475, when necessary to accomplish its duties.deleted text end new text begin , as defined in
Minnesota Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph
(c), and may issue certificates of indebtedness or capital notes in the manner provided for
a city under Minnesota Statutes, section 412.301, when necessary to accomplish its duties.
Any tax levied to pay debt of the district shall be levied in the amounts required and in
accordance with Minnesota Statutes, section 475.61. The debt service for debt, the proceeds
of which financed capital costs for ambulance service, shall be levied against taxable property
within those municipalities in the primary service area. The debt service for debt, the proceeds
of which financed capital costs for fire service, shall be levied against taxable property
within those municipalities receiving fire services.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
new text end
Sec. 34.
Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:
Subd. 5.
Withdrawal.
Notice of intent to withdraw from participation in the district
may be given only in the month of January, with a minimum of twelve months notice of
intent to withdraw. Withdrawal becomes effective for taxes levied new text begin pursuant to subdivision
3 new text end in the year when the notice is given. new text begin A property tax levied by the district on taxable
property located in a withdrawing municipality to make debt service payments for obligations
issued by the district pursuant to subdivision 4 shall remain in effect until the obligations
outstanding on the date of withdrawal are satisfied, including any property tax levied in
connection with a refunding of such obligations. new text end The district and its members may develop
and agree upon new text begin other new text end continuing obligations after withdrawal of a municipality.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
new text end
Sec. 35.
Laws 2017, First Special Session chapter 1, article 10, section 4, the effective
date, is amended to read:
EFFECTIVE DATE; APPLICATION.
This section is effective for applications new text begin and
certifications new text end made in 2018 and thereafter, except the repeal of the exclusion of land under
item (iii) is effective retroactively for payments due under Minnesota Statutes, section
290C.08, beginning for payments due to be made in 2014. In order to qualify for retroactive
payments, the following requirements must be met: (1) the owner of land exceeding 60,000
acres that is subject to a single conservation easement funded under Minnesota Statutes,
section 97A.056 or a comparable permanent easement conveyed to a governmental or
nonprofit entity, must submit an application to the commissioner of revenue, in a form and
manner and at a time acceptable to the commissioner, establishing that the affected property
and its use met the requirement of Minnesota Statutes, chapter 290C, as amended by this
section; (2) the owner and each county in which the land is located must certify to the
commissioner that no petitions challenging the market value of the property are pending
under Minnesota Statutes, chapter 278; and (3) the requirements of clauses (1) and (2) must
be satisfied by October 1, 2017. No interest accrues on payment under this section for
periods before November 1, 2017.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 36. new text begin SPECIAL REFUND PROVISION; DISABLED VETERANS HOMESTEAD
EXCLUSION.
new text end
new text begin
A veteran who was first notified by the United States Department of Veterans Affairs
after July 1, 2017, but before November 1, 2017, as having a total (100 percent) and
permanent disability effective prior to July 1, 2016, but who did not apply to the assessor
by July 1, 2016, for a benefit in Minnesota Statutes, section 273.13, subdivision 34, paragraph
(b), for assessment year 2016, and who did not apply to the assessor by July 1, 2017, for
the benefit in Minnesota Statutes, section 273.13, subdivision 34, paragraph (b), for
assessment year 2017, may apply to the county assessor for a refund of taxes paid in 2017
and 2018 if the veteran otherwise would have qualified for the exclusion in those years. To
qualify for a refund, a property owner must apply to the assessor by November 1, 2018, and
must have paid all tax due in 2017 and 2018. After verifying that the applicant qualified for
an exclusion in 2016 and 2017, the county assessor must notify the county auditor, and the
auditor must recalculate the taxes on the property for taxes payable in 2017 and 2018 based
on the exclusion. The county treasurer must then issue a refund of tax paid in 2017 and
2018 equal to the difference between the taxes as initially calculated for each taxes payable
year and the taxes based on the value remaining after the exclusion.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refund applications received in 2018,
for refunds of tax paid in 2017 and 2018.
new text end
Sec. 37. new text begin SCHOOL PROPERTY TAX REFORM.
new text end
new text begin
(a) A school property tax working group is established as provided in this section. The
goals of the working group are to develop one or more legislative proposals for reform of
Minnesota's property tax system that would:
new text end
new text begin
(1) evaluate the farmland tax burden from the costs of school capital investments;
new text end
new text begin
(2) simplify the tax system used for school district levies;
new text end
new text begin
(3) coordinate interactions with the state general levy; and
new text end
new text begin
(4) accomplish the objectives of this paragraph with optimal levels of state aid and local
property tax.
new text end
new text begin
(b) The 16-member working group shall consist of the following members:
new text end
new text begin
(1) two state representatives, both appointed by the chair of the house of representatives
Taxes Committee, one from the majority party and one from the largest minority party;
new text end
new text begin
(2) two state representatives, both appointed by the chair of the house of representatives
Education Finance Committee, one from the majority party and one from the largest minority
party;
new text end
new text begin
(3) four senators appointed by the Subcommittee on Committees of the Senate Rules
and Administration Committee, two from the majority party and two from the largest
minority party;
new text end
new text begin
(4) one person appointed by the Minnesota School Boards Association;
new text end
new text begin
(5) one person appointed by the Minnesota Rural Education Association;
new text end
new text begin
(6) one person appointed by the Association of Metropolitan School Districts;
new text end
new text begin
(7) one person appointed by Schools for Equity in Education;
new text end
new text begin
(8) one person appointed by the Minnesota Farm Bureau;
new text end
new text begin
(9) one person appointed by the Minnesota Farmers Union;
new text end
new text begin
(10) one person appointed by the Minnesota Chamber of Commerce; and
new text end
new text begin
(11) one person appointed by Minnesota Lakes and Rivers Advocates.
new text end
new text begin
(c) The commissioner of revenue and the commissioner of education, or their designees,
shall serve as ex-officio members of the working group.
new text end
new text begin
(d) All appointments must be made before July 1, 2018. The majority party appointee
of the house of representatives Taxes Committee chair shall chair the initial meeting, and
the working group shall elect a chair at that initial meeting. The working group will meet
at the call of the chair. Members of the working group shall serve without compensation.
The commissioner of revenue must provide administrative support to the working group.
Minnesota Statutes, chapter 13D, does not apply to meetings of the working group. Meetings
of the working group must be open to the public and the working group must provide notice
of a meeting to potentially interested persons at least five days before the meeting. A meeting
of the working group occurs when a quorum is present.
new text end
new text begin
(e) The working group shall make its advisory recommendations to the chairs of the
house of representatives and senate Taxes and Education Finance Committees on or before
January 1, 2019, at which time the working group shall be finished and this section expires.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 6
PUBLIC FINANCE
Section 1.
Minnesota Statutes 2016, section 103E.611, subdivision 2, is amended to read:
Subd. 2.
Interest.
(a) Interest is an additional drainage lien on all property until paid.
The interest rate on the drainage lien principal from the date the drainage lien statement is
recorded must be set by the board but may not exceed the rate determined by the state court
administrator for judgments under section 549.09new text begin , or six percent, whichever is greaternew text end .
(b) Before the tax lists for the year are given to the county treasurer, the auditor shall
compute the interest on the unpaid balance of the drainage lien at the rate set by the board.
The amount of interest must be computed on the entire unpaid principal from the date the
drainage lien was recorded to August 15 of the next calendar year, and afterwards from
August 15 to August 15 of each year.
(c) Interest is due and payable after November 1 of each year the drainage lien principal
or interest is due and unpaid.
Sec. 2.
Minnesota Statutes 2016, section 471.831, is amended to read:
471.831 MUNICIPALITY MAY FILE BANKRUPTCY PETITION.
Subdivision 1.
Any relief under bankruptcy code.
A municipality, as defined in
subdivision 2, may file a petition and seek any relief available to it under United States
Code, title 11, as amended deleted text begin through December 31, 1996deleted text end .
Subd. 2.
Municipality defined.
In this section, "municipality" means a municipality as
defined in United States Code, title 11, section 101, as amended deleted text begin through December 31,
1996deleted text end , but limited to a county, statutory or home rule charter city, or town; or a housing and
redevelopment authority, economic development authority, or rural development financing
authority established under chapter 469, a home rule charter, or special law.
Sec. 3.
Minnesota Statutes 2017 Supplement, section 473.39, subdivision 6, is amended
to read:
Subd. 6.
Limitation; light rail transit.
The council is prohibited from expending any
proceeds from certificates of indebtedness, bonds, or other obligations under deleted text begin this sectiondeleted text end new text begin
subdivision 1unew text end for project development, land acquisition, or construction to (1) establish a
light rail transit line; or (2) expand a light rail transit line, including by extending a line or
adding additional stops.
Sec. 4.
Minnesota Statutes 2016, section 474A.02, subdivision 22b, is amended to read:
Subd. 22b.
Public facilities project.
"Public facilities project" means any publicly owned
facility, or new text begin a new text end facility deleted text begin owned by a nonprofit organizationdeleted text end that is used for district heating or
cooling, new text begin whether publicly or privately owned, new text end that is eligible to be financed with the proceeds
of public facilities bonds as defined under section 474A.02, subdivision 23a.
Sec. 5.
Minnesota Statutes 2016, section 475.521, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
For purposes of this section, the following terms have the
meanings given.
(a) "Bonds" mean an obligation defined under section 475.51.
(b) "Capital improvement" means acquisition or betterment of public lands, buildings
or other improvements for the purpose of a city hall, town hall, library, public safety facility,
and public works facility. An improvement must have an expected useful life of five years
or more to qualify. Capital improvement does not include light rail transit or any activity
related to it, or a park, road, bridge, administrative building other than a city or town hall,
or land for any of those facilities. For purposes of this section, "capital improvement"
includes expenditures for purposes described in this paragraph that have been incurred by
a municipality before approval of a capital improvement plan, if such expenditures are
included in a capital improvement plan approved on or before the date of the public hearing
under subdivision 2 regarding issuance of bonds for such expenditures.
(c) "Municipality" means a home rule charter or statutory city or a town deleted text begin described in
section 368.01, subdivision 1 or 1adeleted text end .
ARTICLE 7
MISCELLANEOUS
Section 1.
Minnesota Statutes 2017 Supplement, section 298.17, is amended to read:
298.17 OCCUPATION TAXES TO BE APPORTIONEDnew text begin ; REFUNDnew text end .
(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
companies, corporations, and associations, however or for whatever purpose organized,
engaged in the business of mining or producing iron ore or other ores, when collected shall
be apportioned and distributed in accordance with the Constitution of the state of Minnesota,
article X, section 3, in the manner following: 90 percent shall be deposited in the state
treasury and credited to the general fund of which four-ninths shall be used for the support
of elementary and secondary schools; and ten percent of the proceeds of the tax imposed
by this section shall be deposited in the state treasury and credited to the general fund for
the general support of the university.
(b) Of the money apportioned to the general fund by this sectionnew text begin , the following allocations
must be madenew text end :
(1) there is annually appropriated and credited to the mining environmental and regulatory
account in the special revenue fund an amount equal to that which would have been generated
by a 2-1/2 cent tax imposed by section 298.24 on each taxable ton produced in the preceding
calendar year. Money in the mining environmental and regulatory account is appropriated
annually to the commissioner of natural resources to fund agency staff to work on
environmental issues and provide regulatory services for ferrous and nonferrous mining
operations in this state. Payment to the mining environmental and regulatory account shall
be made by July 1 annually. The commissioner of natural resources shall execute an
interagency agreement with the Pollution Control Agency to assist with the provision of
environmental regulatory services such as monitoring and permitting required for ferrous
and nonferrous mining operations;
(2) there is annually appropriated and credited to the Iron Range resources and
rehabilitation account in the special revenue fund an amount equal to that which would have
been generated by a 1.5 cent tax imposed by section 298.24 on each taxable ton produced
in the preceding calendar year, to be expended for the purposes of section 298.22new text begin . The
money appropriated shall be used (i) to provide environmental development grants to local
governments located within any county in region 3 as defined in governor's executive order
number 60, issued on June 12, 1970, that does not contain a municipality qualifying pursuant
to section 273.134, paragraph (b), or (ii) to provide economic development loans or grants
to businesses located within any such county, provided that the county board or an advisory
group appointed by the county board to provide recommendations on economic development
shall make recommendations to the commissioner of Iron Range resources and rehabilitation
regarding the loans. Of the money allocated to Koochiching County, one-third must be paid
to the Koochiching County Economic Development Commission. Payment to the Iron
Range resources and rehabilitation account shall be made by May 15 annuallynew text end ; and
(3) there is annually appropriated and credited to the Iron Range resources and
rehabilitation account in the special revenue fund for transfer to the Iron Range school
consolidation and cooperatively operated school account under section 298.28, subdivision
7a, an amount equal to that which would have been generated by a six cent tax imposed by
section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the
Iron Range resources and rehabilitation account shall be made by May 15 annually.
(c) deleted text begin The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to
provide environmental development grants to local governments located within any county
in region 3 as defined in governor's executive order number 60, issued on June 12, 1970,
which does not contain a municipality qualifying pursuant to section 273.134, paragraph
(b), or (ii) to provide economic development loans or grants to businesses located within
any such county, provided that the county board or an advisory group appointed by the
county board to provide recommendations on economic development shall make
recommendations to the commissioner of Iron Range resources and rehabilitation regarding
the loans. Payment to the Iron Range resources and rehabilitation account shall be made by
May 15 annually.deleted text end new text begin After the allocations are made under paragraph (b), any amount remaining
in the general fund, of the money apportioned to the general fund under this section in the
current year, shall be refunded by the commissioner of revenue as provided. By May 15
annually, the commissioner shall issue a refund to each producer equal to the amount of tax
paid by that producer in the current year under section 298.01, as compared to the total
amount of tax paid in the current year under section 298.01 by all producers, provided that
a producer shall not be eligible for a refund under this section in an amount greater than the
amount of tax paid by that producer in the current year. The total amount of refunds issued
under this paragraph in any year shall not exceed $5,000,000.
new text end
deleted text begin
(d) Of the money allocated to Koochiching County, one-third must be paid to the
Koochiching County Economic Development Commission.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with distributions made in
2020 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2016, section 298.225, subdivision 1, is amended to read:
Subdivision 1.
Guaranteed distribution.
(a) new text begin Except as provided under paragraph (c),
new text end the distribution of the taconite production tax as provided in section 298.28, subdivisions
3 to 5, 6, paragraph (b), 7, and 8, shall equal the lesser of the following amounts:
(1) the amount distributed pursuant to this section and section 298.28, with respect to
1983 production if the production for the year prior to the distribution year is no less than
42,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the amount
of the distributions shall be reduced proportionately at the rate of two percent for each
1,000,000 tons, or part of 1,000,000 tons by which the production is less than 42,000,000
tons; or
(2)(i) for the distributions made pursuant to section 298.28, subdivisions 4, paragraphs
(b) and (c), and 6, paragraph (c), 31.2 percent of the amount distributed pursuant to this
section and section 298.28, with respect to 1983 production;
(ii) for the distributions made pursuant to section 298.28, subdivision 5, paragraphs (b)
and (d), 75 percent of the amount distributed pursuant to this section and section 298.28,
with respect to 1983 production provided that the aid guarantee for distributions under
section 298.28, subdivision 5, paragraph (b), shall be reduced by five cents per taxable ton
for production years 2014 and thereafter.
(b) The distribution of the taconite production tax as provided in section 298.28,
subdivision 2, shall equal the following amount:
(1) if the production for the year prior to the distribution year is at least 42,000,000
taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
to 1999 production; or
(2) if the production for the year prior to the distribution year is less than 42,000,000
taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000
tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons.
new text begin
(c) The distribution of the taconite production tax under section 298.28, subdivision 3,
paragraph (a), guaranteed under this section is equal to the amount distributed under section
298.28, with respect to 1983 production.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for distributions in 2020 and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2017 Supplement, section 298.227, is amended to read:
298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
commissioner of Iron Range resources and rehabilitation in a separate taconite economic
development fund for each taconite and direct reduced ore producer. Money from the fund
for each producer shall be released by the commissioner after review by a joint committee
consisting of an equal number of representatives of the salaried employees and the
nonsalaried production and maintenance employees of that producer. The District 11 director
of the United States Steelworkers of America, on advice of each local employee president,
shall select the employee members. In nonorganized operations, the employee committee
shall be elected by the nonsalaried production and maintenance employees. The review
must be completed no later than six months after the producer presents a proposal for
expenditure of the funds to the committee. The funds held pursuant to this section may be
released only for workforce development deleted text begin and associated public facility improvementdeleted text end ,
concurrent reclamation, deleted text begin or for acquisition ofdeleted text end plant and stationary mining equipment and
facilities for the producer or for research and development in Minnesota on new mining, or
taconite, iron, or steel production technology, but only if the producer provides a matching
expenditure equal to the amount of the distribution to be used for the same purpose deleted text begin beginning
with distributions in 2014. Effective for proposals for expenditures of money from the fund
beginning May 26, 2007, the commissioner may not release the funds before the next
scheduled meeting of the boarddeleted text end . If a proposed expenditure is not approved by the
commissioner, after consultation with the advisory board, the funds must be deposited in
the Taconite Environmental Protection Fund under sections 298.222 to 298.225. If a taconite
production facility is sold after operations at the facility had ceased, any money remaining
in the fund for the former producer may be released to the purchaser of the facility on the
terms otherwise applicable to the former producer under this section. If a producer fails to
provide matching funds for a proposed expenditure within six months after the commissioner
approves release of the funds, the funds deleted text begin are available for release to another producer in
proportion to the distribution provided and under the conditions of this sectiondeleted text end new text begin may be
released by the commissioner for deposit in the taconite area environmental protection fund
created in section 298.223new text end . Any portion of the fund which is not released by the commissioner
within one year of its deposit in the fund shall be deleted text begin divided betweendeleted text end new text begin distributed to new text end the taconite
environmental protection fund deleted text begin created in section 298.223 and the Douglas J. Johnson
economic protection trust fund created in section 298.292 for placement in their respective
special accounts. Two-thirds of the unreleased funds shall be distributed to the taconite
environmental protection fund and one-third to the Douglas J. Johnson economic protection
trust funddeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2016, section 298.28, subdivision 9a, is amended to read:
Subd. 9a.
Taconite economic development fund.
(a) 25.1 cents per ton for distributions
in 2002 and thereafter must be paid to the taconite economic development fund. No
distribution shall be made under this paragraph in 2004 or any subsequent year in which
total industry production falls below 30 million tons. Distribution shall only be made to a
new text begin Minnesota new text end taconite new text begin pellet new text end producer's fund under section 298.227 if the producer timely pays
its tax under section 298.24 by the dates provided under section 298.27, or pursuant to the
due dates provided by an administrative agreement with the commissioner.
(b) An amount equal to 50 percent of the tax under section 298.24 for concentrate sold
in the form of pellet chips and fines not exceeding 5/16 inch in size and not including crushed
pellets shall be paid to the taconite economic development fund. The amount paid shall not
exceed $700,000 annually for all deleted text begin companiesdeleted text end new text begin Minnesota taconite pellet producersnew text end . If the
initial amount to be paid to the fund exceeds this amount, each deleted text begin company'sdeleted text end new text begin Minnesota taconite
pellet producer'snew text end payment shall be prorated so the total does not exceed $700,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from December 31, 2016.
new text end
Sec. 5.
Laws 1986, chapter 379, section 1, subdivision 1, is amended to read:
Subdivision 1.
Liquor and food tax authorized.
new text begin (a) new text end Notwithstanding Minnesota Statutes,
section 477A.016, or any ordinance, city charter, or other provision of law, the city of St.
Cloud may, by ordinance, impose a sales tax supplemental to the general sales tax imposed
in Minnesota Statutes, chapter 297A, the proceeds of which shall be used in accordance
with subdivision 2. The tax imposed by the city may be not more than one percent on the
gross receipts from all retail on-sales of intoxicating liquor and fermented malt beverages
sold at licensed on-sale liquor establishments located within its geographic boundaries, or
not more than one percent on the gross receipts from the retail sale of food and beverages
not subject to the liquor tax by a restaurant or place of refreshment located within its
geographic boundaries, or both. For purposes of this act, the city shall define the terms
"restaurant" and "place of refreshment" by resolution. The governing body of the city may
adopt an ordinance establishing a convention center taxing district. The ordinance shall
describe with particularity the area within the city to be included in the district. If the city
establishes a convention center taxing district, the sales taxes authorized under this
subdivision may be imposed only upon the sales occurring at on-sale liquor establishments,
restaurants, or other places of refreshment located within the district.
new text begin
(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
ordinance, city charter, or other provision of law, the city of St. Cloud may, if approved by
the voters at a general election, increase by ordinance the tax allowed under paragraph (a)
by up to one-half of one percent. The election must be held before the governing body of
the city considers the ordinance. The proceeds of the increased tax must be used for
remodeling, improvements, and expansion of the Municipal Athletic Center, including
making payments on any associated bonds.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of St. Cloud and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 6.
Laws 1986, chapter 379, section 1, subdivision 3, is amended to read:
Subd. 3.
Expiration of taxing authority.
new text begin (a) new text end The authority granted by subdivision 1new text begin ,
paragraph (a),new text end to the city to impose a liquor and food tax shall expire when the principal
and interest on any bonds or other obligations issued to finance construction of a convention
center facility or related facilities have been paid or at an earlier time as the city shall, by
ordinance, determine.
new text begin
(b) The authority granted by subdivision 1, paragraph (b), to increase the tax authorized
under subdivision 1, paragraph (a), shall expire at the earlier of:
new text end
new text begin
(1) 25 years; or
new text end
new text begin
(2) when principal and interest on any bonds or other obligations issued to finance the
remodeling, improvements, and expansion of the Municipal Athletic Center have been paid.
new text end
new text begin
(c) The authority granted by subdivision 1, paragraph (b), may also terminate by city
ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of St. Cloud and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 7.
Laws 1986, chapter 379, section 2, subdivision 1, is amended to read:
Subdivision 1.
Additional tax authorized.
new text begin (a) new text end Notwithstanding Minnesota Statutes,
section 477A.016, or any ordinance, city charter, or other provision of law, the city of St.
Cloud may, by ordinance, impose a tax at a rate not to exceed two percent in addition to
the tax authorized under Laws 1979, chapter 197, on the gross receipts from the furnishing
for consideration of lodging at a hotel, motel, rooming house, tourist court, or resort other
than the renting or leasing of it for a continuous period of 30 days or more.
new text begin
(b) Notwithstanding Minnesota Statutes, section 477A.016, the city of St. Cloud may,
if approved by the voters at a general election, increase by ordinance the tax allowed under
paragraph (a) by up to one percent. The election must be held before the governing body
of the city considers the ordinance. The proceeds of the increased tax must be used
exclusively for the marketing and promotion of the Municipal Athletic Center.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of St. Cloud and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 8.
Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session
chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3, is amended
to read:
Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.
The city may, by resolution, levy in addition to taxes authorized by other law:
(1) a sales tax of not more than three percent on the gross receipts on retail on-sales of
intoxicating liquor and fermented malt beverages when sold at licensed on-sale liquor
establishments located within the downtown taxing area, provided that this tax may not be
imposed if sales of intoxicating liquor and fermented malt beverages are exempt from
taxation under chapter 297A;
(2) a sales tax of not more than three percent on the gross receipts from the furnishing
for consideration of lodging for a period of less than 30 days at a hotel, motel, rooming
house, tourist court, or trailer camp located within the city by a hotel or motel which has
more than 50 rooms available for lodging; the tax imposed under this clause shall be at a
rate that, when added to the sum of the rate of the sales tax imposed under Minnesota
Statutes, chapter 297A, the rate of the sales tax imposed under section 4, and the rate of any
other taxes on lodging in the city of Minneapolis, equals deleted text begin 13deleted text end new text begin 13.875new text end percent; and
(3) a sales tax of not more than three percent on the gross receipts on all sales of food
primarily for consumption on or off the premises by restaurants and places of refreshment
as defined by resolution of the city that occur within the downtown taxing area.
The taxes authorized by this section must not be terminated before January 1, 2047. The
taxes shall be imposed and may be adjusted periodically by the city council such that the
rates imposed produce revenue sufficient, together with the tax imposed under section 4,
to finance the purposes described in Minnesota Statutes, section 297A.994, and section 4,
subdivisions 3 and 4. These taxes shall be applied, first, as provided in Minnesota Statutes,
section 297A.994, subdivision 3, clauses (1) to (3), and then, solely to pay, secure, maintain,
and fund the payment of any principal of, premium on, and interest on any bonds or any
other purposes in section 4, subdivision 3 or 4. The commissioner of revenue may enter
into appropriate agreements with the city to provide for the collection of these taxes by the
state on behalf of the city. These taxes shall be subject to the same interest, penalties, and
enforcement provisions as the taxes imposed under Minnesota Statutes, chapter 297A.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
September 30, 2018.
new text end
Sec. 9.
Laws 1986, chapter 462, section 31, as amended by Laws 1991, chapter 291, article
8, section 24, and Laws 2011, chapter 112, article 4, section 6, is amended to read:
Sec. 31. AUTHORITY FOR TAXATION.
Notwithstanding Minnesota Statutes, section 477A.016, or any other law, and
supplemental to the tax imposed by Laws 1982, chapter 523, article 25, section 1, the city
of St. Paul may impose, by ordinance, a tax, at a rate not greater than deleted text begin threedeleted text end new text begin fournew text end percent, on
the gross receipts from the furnishing for consideration of lodging and related services at a
hotel, rooming house, tourist court, motel, or resort, other than the renting or leasing of
space for a continuous period of 30 days or more. The tax does not apply to the furnishing
of lodging and related services by a business having less than 50 lodging rooms. The tax
shall be collected by and its proceeds paid to the city. Ninety-five percent of the revenues
generated by this tax shall be used to fund a convention bureau to market and promote the
city as a tourist or convention center.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the first day of the calendar quarter
beginning at least 30 days after the governing body of the city of St. Paul and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 10.
Laws 2008, chapter 366, article 5, section 26, as amended by Laws 2013, chapter
143, article 9, section 11, is amended to read:
Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR RULE.
(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
activities must be undertaken within a five-year period from the date of certification of a
tax increment financing district, are increased to a deleted text begin 15deleted text end new text begin 20new text end -year period for the Port Authority
of the City of Bloomington's Tax Increment Financing District No. 1-I, Bloomington Central
Station.
(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other
law to the contrary, the city of Bloomington and its port authority may extend the duration
limits of the district for a period through December 31, 2039.
(c) Effective for taxes payable in 2014, tax increment for the district must be computed
using the current local tax rate, notwithstanding the provisions of Minnesota Statutes, section
469.177, subdivision 1a.
new text begin
(d) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, relating
to use of increments after the end of the time limit in Minnesota Statutes, section 469.1763,
subdivision 3, do not apply to the Port Authority of the City of Bloomington's Tax Increment
Financing District No. 1-I, Bloomington Central Station.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Bloomington and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 11.
Laws 2011, First Special Session chapter 7, article 4, section 10, subdivision 3,
is amended to read:
Subd. 3.
Use of revenues.
new text begin (a) new text end Revenues received from taxes authorized by subdivisions
1 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for the
following projects:
(1) $4,500,000 for construction and completion of park improvement projects, including
St. Louis River riverfront improvements; Veteran's Park construction and improvements;
improvements to the Hilltop Park soccer complex and Braun Park baseball complex; capital
equipment and building and grounds improvements at the Pine Valley Park/Pine Valley
Hockey Arena/Cloquet Area Recreation Center; and development of pedestrian trails within
the city;
(2) $5,800,00 for extension of utilities and the construction of all improvements associated
with the development of property adjacent to Highway 33 and Interstate Highway 35,
including payment of all debt service on bonds issued for these; and
(3) $6,200,000 for engineering and construction of infrastructure improvements,
includingdeleted text begin , but not limited todeleted text end new text begin roads, bridgesnew text end , storm sewer, sanitary sewer, and water in areas
identified as part of the city's comprehensive land use plan.
new text begin (b) new text end Authorized expenses include, but are not limited to, acquiring property and paying
construction expenses related to these improvements, and paying debt service on bonds or
other obligations issued to finance acquisition and construction of these improvements.
new text begin
(c) Notwithstanding the revenue allocations in paragraph (a), clause (3), if the amount
spent for the improvements under paragraph (a), clause (2), are less than the $5,800,000
allowed under that clause, the total amount spent for the purpose listed in paragraph (a),
clause (3), may be increased by the difference between $5,800,000 and the amount actually
spent under paragraph (a), clause (2). However, the total expenditures for projects under
this subdivision may not exceed $16,500,000, excluding any costs related to issuance of
bonds under subdivision 4.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Cloquet and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 12.
Laws 2017, First Special Session chapter 1, article 4, section 31, is amended to
read:
Sec. 31. APPROPRIATION; FIRE REMEDIATION GRANTS.
$1,392,258 is appropriated in fiscal year 2018 from the general fund to the commissioner
of public safety for grants to remediate the effects of fires in the city of Melrose on September
8, 2016. The commissioner must allocate the grants as follows:
(1) deleted text begin $1,296,458deleted text end new text begin $1,381,258new text end to the city of Melrose; and
(2) deleted text begin $95,800deleted text end new text begin $11,000new text end to Stearns County.
A grant recipient must use the money appropriated under this section for remediation
costs, including disaster recovery, infrastructure, reimbursement for emergency personnel
costs, reimbursement for equipment costs, and reimbursements for property tax abatements,
incurred by public or private entities as a result of the fires. This is a onetime appropriation
and is available until June 30, deleted text begin 2018deleted text end new text begin 2019new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13. new text begin CITY OF EXCELSIOR; TAXES AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, the city of Excelsior may impose, by ordinance, a sales and use tax of up to one-half
of one percent for the purposes specified in subdivision 2, as approved by the voters at the
November 4, 2014, election. Any additional bonding authority for the purposes specified
in subdivision 2 must be approved by the voters at a general election. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision.
new text end
new text begin Subd. 2. new text end
new text begin Use of sales and use tax revenues. new text end
new text begin
The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Excelsior to pay the costs of collecting and
administering the tax and to finance the capital and administrative costs of improvements
to the commons as indicated in the November 2016 findings of the commons master planning
work group. Authorized expenses include, but are not limited to, improvements for
walkability and accessibility, enhancement of beach area and facilities, prevention and
management of shoreline erosion, redesign of the port and bandshell, improvement of
playground equipment, and securing and paying debt service on bonds issued under
subdivision 3 or other obligations issued to the improvements listed in this subdivision in
the city of Excelsior.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of Excelsior may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $5,000,000, plus an amount to be applied to the payment of the costs of issuing
the bonds. The bonds may be paid from or secured by any funds available to the city of
Excelsior, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end
new text begin
(b) The bonds are not included in computing any debt limitation applicable to the city
of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the
earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
that $5,000,000 has been received from the tax to pay for the cost of the projects authorized
under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Excelsior and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 14. new text begin CITY OF CHAMPLIN; TAX INCREMENT FINANCING DISTRICT;
PROJECT REQUIREMENTS.
new text end
new text begin Subdivision 1. new text end
new text begin Five-year rule. new text end
new text begin
The governing body of the city of Champlin may elect
to extend the five-year rule under under Minnesota Statutes, section 469.1763, subdivision
3, to a ten-year period for the Mississippi Crossings tax increment financing district.
new text end
new text begin Subd. 2. new text end
new text begin Revenues for decertification. new text end
new text begin
Minnesota Statutes, section 469.1763, subdivision
4, does not apply to the Mississippi Crossings tax increment financing district.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the city of Champlin and
its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2
and 3.
new text end
Sec. 15. new text begin TRANSFER 2018 DISTRIBUTION ONLY.
new text end
new text begin
For the 2018 distribution, the fund established under Minnesota Statutes, section 298.28,
subdivision 7, shall receive ten cents per ton of any excess of the balance remaining after
distribution of amounts required under Minnesota Statutes, section 298.28, subdivision 6.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for the 2018 distribution, and the transfer
must be made within ten days of the August 2018 payment.
new text end
Sec. 16. new text begin APPROPRIATION.
new text end
new text begin
$5,000 in fiscal year 2019 only is appropriated from the general fund to the commissioner
of revenue for a grant of $2,600 to the city of Mazeppa and a grant of $2,400 to Wabasha
County. The grants, which shall be paid by July 20, 2018, may be used for property tax
abatements and other costs incurred by public and private entities as a result of a fire in the
city of Mazeppa on March 11, 2018. This is a onetime appropriation.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2018.
new text end
Sec. 17. new text begin APPROPRIATION.
new text end
new text begin
In addition to other amounts appropriated, $1,977,000 in fiscal year 2018 and $1,978,000
in fiscal year 2019 are appropriated from the general fund to the commissioner of revenue
to administer this act. These are onetime appropriations.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 8
DEPARTMENT OF REVENUE; PROPERTY TAX; POLICY CHANGES
Section 1.
Minnesota Statutes 2016, section 162.145, subdivision 3, is amended to read:
Subd. 3.
Administration.
(a) Subject to funds made available by law, the commissioner
shall allocate all funds as provided in subdivision 4 and shall deleted text begin notifydeleted text end new text begin , by June 1, certify tonew text end
the commissioner of revenuenew text begin the amounts to be paidnew text end .
(b) Following deleted text begin notificationdeleted text end new text begin certificationnew text end from the commissioner deleted text begin of transportationdeleted text end , the
commissioner of revenue shall distribute the specified funds to cities in the same manner
as local government aid under chapter 477A. An appropriation to the commissioner deleted text begin of
transportationdeleted text end under this section is available to the commissioner of revenue for the purposes
specified in this paragraph.
(c) Notwithstanding other law to the contrary, in order to receive distributions under
this section, a city must conform to the standards in section 477A.017, subdivision 2. A city
that receives funds under this section must make and preserve records necessary to show
that the funds are spent in compliance with subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2018 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2016, section 270.41, subdivision 3, is amended to read:
Subd. 3.
Assessor sanctions; refusal to license.
(a) new text begin Following a recommendation from
the commissioner of revenue, new text end the board may (i) refuse to grant or renew, or may suspend
or revoke, a license of an applicant or licensee, or (ii) censure, warn, or fine any licensed
assessor, or any other person employed by an assessment jurisdiction or contracting with
an assessment jurisdiction for the purpose of valuing or classifying property for property
tax purposes, for any of the following causes or acts:
(1) failure to complete required training;
(2) inefficiency or neglect of duty;
(3) failure to comply with the Code of Conduct and Ethics for Licensed Minnesota
Assessors adopted by the board pursuant to Laws 2005, First Special Session chapter 3,
article 1, section 38;
(4) conviction of a crime involving moral turpitude;
(5) failure to faithfully and fully perform his or her duties through malfeasance,
misfeasance, or nonfeasance; or
(6) any other cause or act that in the board's opinion warrants a refusal to issue a license
or the imposition of a sanction provided under this subdivision.
(b) When appropriate for the level of infraction, a written warning must be given to
assessors who have no prior identified infractions. The warning must identify the infraction
and, as appropriate, detail future expectations of performance and behavior. Fines must not
exceed $1,000 for the first occurrence and must not exceed $3,000 for each occurrence
thereafter, and suspensions must not exceed one year for each occurrence, depending in
each case upon the severity of the infraction and the level of negligence or intent. new text begin The
commissioner of revenue shall give notice to an applicant or licensee of the commissioner's
recommendation that the board impose sanctions or refuse to grant or renew a license. new text end An
action by the board to impose a deleted text begin sanctiondeleted text end new text begin fine, to suspend or revoke a license, or to refuse
to grant or renew a licensenew text end is subject to review in a contested case hearing under chapter
14.new text begin A licensee must submit a request for a hearing to the board within 30 days of the notice
date of the commissioner's recommendation for sanctions or for refusal to grant or renew
a license.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sanctions or refusals to grant or renew
a license recommended by the commissioner of revenue after June 30, 2018.
new text end
Sec. 3.
Minnesota Statutes 2017 Supplement, section 272.115, subdivision 1, is amended
to read:
Subdivision 1.
Requirement.
Except as otherwise provided in subdivision 5, 6, or 7,
whenever any real estate is sold for a consideration in excess of deleted text begin $1,000deleted text end new text begin $3,000new text end , whether by
warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor,
grantee or the legal agent of either shall file a certificate of value with the county auditor
in the county in which the property is located when the deed or other document is presented
for recording. Contract for deeds are subject to recording under section 507.235, subdivision
1. Value shall, in the case of any deed not a gift, be the amount of the full actual consideration
thereof, paid or to be paid, including the amount of any lien or liens assumed. The items
and value of personal property transferred with the real property must be listed and deducted
from the sale price. The certificate of value shall include the classification to which the
property belongs for the purpose of determining the fair market value of the property, and
shall include any proposed change in use of the property known to the person filing the
certificate that could change the classification of the property. The certificate shall include
financing terms and conditions of the sale which are necessary to determine the actual,
present value of the sale price for purposes of the sales ratio study. If the property is being
acquired as part of a like-kind exchange under section 1031 of the Internal Revenue Code
of 1986, as amended through December 31, 2006, that must be indicated on the certificate.
The commissioner of revenue shall promulgate administrative rules specifying the financing
terms and conditions which must be included on the certificate. The certificate of value
must include the Social Security number or the federal employer identification number of
the grantors and grantees. However, a married person who is not an owner of record and
who is signing a conveyance instrument along with the person's spouse solely to release
and convey their marital interest, if any, in the real property being conveyed is not a grantor
for the purpose of the preceding sentence. A statement in the deed that is substantially in
the following form is sufficient to allow the county auditor to accept a certificate for filing
without the Social Security number of the named spouse: "(Name) claims no ownership
interest in the real property being conveyed and is executing this instrument solely to release
and convey a marital interest, if any, in that real property." The identification numbers of
the grantors and grantees are private data on individuals or nonpublic data as defined in
section 13.02, subdivisions 9 and 12, but, notwithstanding that section, the private or
nonpublic data may be disclosed to the commissioner of revenue for purposes of tax
administration. The information required to be shown on the certificate of value is limited
to the information required as of the date of the acknowledgment on the deed or other
document to be recorded.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for certificates of value filed after
December 31, 2018.
new text end
Sec. 4.
Minnesota Statutes 2016, section 287.21, subdivision 1, is amended to read:
Subdivision 1.
Determination of tax.
(a) A tax is imposed on each deed or instrument
by which any real property in this state is granted, assigned, transferred, or otherwise
conveyed. The tax applies against the net consideration. For purposes of the tax, the
conversion of a corporation to a limited liability company, a limited liability company to a
corporation, a partnership to a limited partnership, a limited partnership to another limited
partnership or other entity, or a similar conversion of one entity to another does not grant,
assign, transfer, or convey real property.
(b) The tax is determined in the following manner: (1) when transfers are made by
instruments pursuant to (i) consolidations or mergers, or (ii) designated transfers, the tax is
$1.65; (2) when there is no consideration or when the consideration, exclusive of the value
of any lien or encumbrance remaining thereon at the time of sale, is deleted text begin $500deleted text end new text begin $3,000new text end or less,
the tax is $1.65; or (3) when the consideration, exclusive of the value of any lien or
encumbrance remaining at the time of sale, exceeds deleted text begin $500deleted text end new text begin $3,000new text end , the tax is .0033 of the net
consideration.
(c) If, within six months from the date of a designated transfer, an ownership interest in
the grantee entity is transferred by an initial owner to any person or entity with the result
that the designated transfer would not have been a designated transfer if made to the grantee
entity with its subsequent ownership, then a tax is imposed at .0033 of the net consideration
for the designated transfer. If the subsequent transfer of ownership interests was reasonably
expected at the time of the designated transfer, the applicable penalty under section 287.31,
subdivision 1, must be paid. The deed tax imposed under this paragraph is due within 30
days of the subsequent transfer that caused the tax to be imposed under this paragraph.
Involuntary transfers of ownership shall not be considered transfers of ownership under this
paragraph. The commissioner may adopt rules defining the types of transfers to be considered
involuntary.
(d) The tax is due at the time a taxable deed or instrument is presented for recording,
except as provided in paragraph (c). The commissioner may require the tax to be documented
in a manner prescribed by the commissioner, and may require that the documentation be
attached to and recorded as part of the deed or instrument. The county recorder or registrar
of titles shall accept the attachment for recording as part of the deed or instrument and may
not require, as a condition of recording a deed or instrument, evidence that a transfer is a
designated transfer in addition to that required by the commissioner. Such an attachment
shall not, however, provide actual or constructive notice of the information contained therein
for purposes of determining any interest in the real property. The commissioner shall
prescribe the manner in which the tax due under paragraph (c) is to be paid and may require
grantees of designated transfers to file with the commissioner subsequent statements verifying
that the tax provided under paragraph (c) does not apply.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for deeds recorded after December 31,
2018.
new text end
ARTICLE 9
DEPARTMENT OF REVENUE; MISCELLANEOUS; POLICY CHANGES
Section 1.
Minnesota Statutes 2016, section 270B.08, subdivision 2, is amended to read:
Subd. 2.
Revocationnew text begin or cancellationnew text end .
When a taxpayer's sales tax permit has been
revokednew text begin or cancelednew text end under section 270C.722new text begin or 297A.84new text end , the commissioner may disclosenew text begin
to any personnew text end data identifying the holder of the revokednew text begin or cancelednew text end permit, deleted text begin statingdeleted text end the basis
for the revocationnew text begin or cancellation, the date of the revocation or cancellationnew text end , and deleted text begin stating
whether thedeleted text end new text begin if a revoked or cancelednew text end permit has been reinstatednew text begin , the date upon which the
permit was reinstatednew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2016, section 297A.84, is amended to read:
297A.84 PERMITS ISSUEDnew text begin AND NOT ISSUED; CANCELLATIONnew text end .
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) The following definitions apply for the purposes of this
section.
new text end
new text begin
(b) "Applicant" means an individual, corporation, or partnership. Applicant also includes
any officer of a corporation or member of a partnership.
new text end
new text begin
(c) "Delinquent sales tax" means tax not paid by the date the tax was due and payable
under section 289A.20, subdivision 4, or an assessment not paid if the applicant has been
issued an order assessing sales and use tax under section 270C.33, subdivision 4.
new text end
new text begin Subd. 2. new text end
new text begin Permits issued. new text end
new text begin Except as provided in subdivision 3, new text end the commissioner deleted text begin shalldeleted text end new text begin
mustnew text end issue a permit to each applicant who has complied with section 297A.83, and with
section 297A.92 if security is required. A person is considered to have a permit if the person
has a Minnesota tax identification number issued by the commissioner that is currently
active for taxes imposed by this chapter. A permit is valid until canceled or revoked. It is
not assignable and is valid only for the person in whose name it is granted and for the
transaction of business at the places designated on the permit.
new text begin Subd. 3. new text end
new text begin Permits not issued. new text end
new text begin
(a) Except as provided in paragraph (b), the commissioner
must not issue a permit to an applicant if the applicant is liable for delinquent sales tax.
new text end
new text begin
(b) The commissioner must issue a permit to an applicant if an appeal period of an order
assessing sales tax under section 270C.33, subdivision 5, has not ended. The commissioner
may cancel a permit issued under this paragraph in the manner provided in subdivision 4
if the applicant owes delinquent sales tax after the appeal period has ended.
new text end
new text begin Subd. 4. new text end
new text begin Nonconforming permits; cancellation; reissue. new text end
new text begin
(a) If the commissioner issues
a permit that does not conform with the requirements of this section or applicable rules, the
commissioner may cancel the permit upon notice to the permit holder. The notice must be
served by first class and certified mail at the permit holder's last known address. The
cancellation is effective immediately.
new text end
new text begin
(b) If a permit holder shows that a canceled permit was issued in conformance with the
requirements of this section and applicable rules, the commissioner must reissue the permit.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for permit applications filed after
December 31, 2018.
new text end
Sec. 3.
Minnesota Statutes 2016, section 297A.85, is amended to read:
297A.85 CANCELLATION OF PERMITS.
The commissioner may cancel a permit if one of the following conditions occurs:
(1) the permit holder has not filed a sales or use tax return for at least one year;
(2) the permit holder has not reported any sales or use tax liability on the permit holder's
returns for at least two years;
(3) the permit holder requests cancellation of the permit; deleted text begin or
deleted text end
(4) the permit is subject to cancellation deleted text begin pursuant todeleted text end new text begin undernew text end section 270C.722, subdivision
2, paragraph (a)deleted text begin .deleted text end new text begin ; or
new text end
new text begin
(5) the permit is subject to cancellation under section 297A.84.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for permit applications filed after
December 31, 2018.
new text end
ARTICLE 10
PARTNERSHIP TAX
Section 1.
Minnesota Statutes 2017 Supplement, section 270C.445, subdivision 6, is
amended to read:
Subd. 6.
Enforcement; administrative order; penalties; cease and desist.
(a) The
commissioner may impose an administrative penalty of not more than $1,000 per violation
of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed
for any conduct for which a tax preparer penalty is imposed under section 289A.60,
subdivision 13. The commissioner may terminate a tax preparer's authority to transmit
returns electronically to the state, if the commissioner determines the tax preparer engaged
in a pattern and practice of violating this section. Imposition of a penalty under this paragraph
is subject to the contested case procedure under chapter 14. The commissioner shall collect
the penalty in the same manner as the income tax. There is no right to make a claim for
refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed
under this paragraph are public data.
(b) In addition to the penalty under paragraph (a), if the commissioner determines that
a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may
issue an administrative order to the tax preparer requiring the tax preparer to cease and
desist from committing the violation. The administrative order may include an administrative
penalty provided in paragraph (a).
(c) If the commissioner issues an administrative order under paragraph (b), the
commissioner must send the order to the tax preparer addressed to the last known address
of the tax preparer.
(d) A cease and desist order under paragraph (b) must:
(1) describe the act, conduct, or practice committed and include a reference to the law
that the act, conduct, or practice violates; and
(2) provide notice that the tax preparer may request a hearing as provided in this
subdivision.
(e) Within 30 days after the commissioner issues an administrative order under paragraph
(b), the tax preparer may request a hearing to review the commissioner's action. The request
for hearing must be made in writing and must be served on the commissioner at the address
specified in the order. The hearing request must specifically state the reasons for seeking
review of the order. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed.
(f) If a tax preparer does not timely request a hearing regarding an administrative order
issued under paragraph (b), the order becomes a final order of the commissioner and is not
subject to review by any court or agency.
(g) If a tax preparer timely requests a hearing regarding an administrative order issued
under paragraph (b), the hearing must be commenced within ten days after the commissioner
receives the request for a hearing.
(h) A hearing timely requested under paragraph (e) is subject to the contested case
procedure under chapter 14, as modified by this subdivision. The administrative law judge
must issue a report containing findings of fact, conclusions of law, and a recommended
order within ten days after the completion of the hearing, the receipt of late-filed exhibits,
or the submission of written arguments, whichever is later.
(i) Within five days of the date of the administrative law judge's report issued under
paragraph (h), any party aggrieved by the administrative law judge's report may submit
written exceptions and arguments to the commissioner. Within 15 days after receiving the
administrative law judge's report, the commissioner must issue an order vacating, modifying,
or making final the administrative order.
(j) The commissioner and the tax preparer requesting a hearing may by agreement
lengthen any time periods prescribed in paragraphs (g) to (i).
(k) An administrative order issued under paragraph (b) is in effect until it is modified
or vacated by the commissioner or an appellate court. The administrative hearing provided
by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute
the exclusive remedy for a tax preparer aggrieved by the order.
(l) The commissioner may impose an administrative penalty, in addition to the penalty
under paragraph (a), up to $5,000 per violation of a cease and desist order issued under
paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case
procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under
this paragraph, the tax preparer assessed the penalty may request a hearing to review the
penalty order. The request for hearing must be made in writing and must be served on the
commissioner at the address specified in the order. The hearing request must specifically
state the reasons for seeking review of the order. The cease and desist order issued under
paragraph (b) is not subject to review in a proceeding to challenge the penalty order under
this paragraph. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed. If the tax preparer does not
timely request a hearing, the penalty order becomes a final order of the commissioner and
is not subject to review by any court or agency. A penalty imposed by the commissioner
under this paragraph may be collected and enforced by the commissioner as an income tax
liability. There is no right to make a claim for refund under section 289A.50 of the penalty
imposed under this paragraph. A penalty imposed under this paragraph is public data.
(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the
commissioner may terminate the tax preparer's authority to transmit returns electronically
to the state. Termination under this paragraph is public data.
(n) A cease and desist order issued under paragraph (b) is public data when it is a final
order.
(o) Notwithstanding any other law, the commissioner may impose a penalty or take other
action under this subdivision against a tax preparer, with respect to a return, within the
period to assess tax on that return as provided by deleted text begin sectiondeleted text end new text begin sectionsnew text end 289A.38new text begin to 289A.384new text end .
(p) Notwithstanding any other law, the imposition of a penalty or any other action against
a tax preparer under this subdivision, other than with respect to a return, must be taken by
the commissioner within five years of the violation of statute.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 2.
Minnesota Statutes 2017 Supplement, section 289A.31, subdivision 1, is amended
to read:
Subdivision 1.
Individual income, fiduciary income, mining company, corporate
franchise, and entertainment taxes.
(a) Individual income, fiduciary income, mining
company, and corporate franchise taxes, and interest and penalties, must be paid by the
taxpayer upon whom the tax is imposed, except in the following cases:
(1) the tax due from a decedent for that part of the taxable year in which the decedent
died during which the decedent was alive and the taxes, interest, and penalty due for the
prior years must be paid by the decedent's personal representative, if any. If there is no
personal representative, the taxes, interest, and penalty must be paid by the transferees, as
defined in section 270C.58, subdivision 3, to the extent they receive property from the
decedent;
(2) the tax due from an infant or other incompetent person must be paid by the person's
guardian or other person authorized or permitted by law to act for the person;
(3) the tax due from the estate of a decedent must be paid by the estate's personal
representative;
(4) the tax due from a trust, including those within the definition of a corporation, as
defined in section 290.01, subdivision 4, must be paid by a trustee; and
(5) the tax due from a taxpayer whose business or property is in charge of a receiver,
trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge
of the business or property so far as the tax is due to the income from the business or property.
(b) Entertainment taxes are the joint and several liability of the entertainer and the
entertainment entity. The payor is liable to the state for the payment of the tax required to
be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the
entertainer for the amount of the payment.
(c) The taxes imposed under sections 289A.35new text begin , paragraph (b), 289A.383, subdivision
3,new text end and 290.0922 on partnerships are the joint and several liability of the partnership and the
general partners.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 3.
Minnesota Statutes 2017 Supplement, section 289A.37, subdivision 2, is amended
to read:
Subd. 2.
Erroneous refunds.
(a) Except as provided in paragraph (b), an erroneous
refund occurs when the commissioner issues a payment to a person that exceeds the amount
the person is entitled to receive under law. An erroneous refund is considered an
underpayment of tax on the date issued.
(b) To the extent that the amount paid does not exceed the amount claimed by the
taxpayer, an erroneous refund does not include the following:
(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a
taxpayer, including but not limited to refunds of claims made under section 290.06,
subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
290.0681; or 290.0692; or chapter 290A; or
(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
taxpayer.
(c) The commissioner may make an assessment to recover an erroneous refund at any
time within two years from the issuance of the erroneous refund. If all or part of the erroneous
refund was induced by fraud or misrepresentation of a material fact, the assessment may
be made at any time.
(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
conducted under deleted text begin sectiondeleted text end new text begin sectionsnew text end 289A.38new text begin to 289A.384new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 4.
Minnesota Statutes 2016, section 289A.38, subdivision 10, is amended to read:
Subd. 10.
Incorrect determination of federal adjusted gross income.
Notwithstanding
any other provision of this chapter, if a taxpayer whose net income is determined under
section 290.01, subdivision 19, omits from income an amount that will under the Internal
Revenue Code extend the statute of limitations for the assessment of federal income taxes,
or otherwise incorrectly determines the taxpayer's federal adjusted gross income resulting
in adjustments by the Internal Revenue Service, then the period of assessment and
determination of tax will be that under the Internal Revenue Code. When a change is made
to federal income during the extended time provided under this subdivision, the provisions
under deleted text begin subdivisions 7 to 9deleted text end new text begin sections 289A.381 to 289A.384new text end regarding additional extensions
apply.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 5.
new text begin
[289A.381] DEFINITIONS; PARTNERSHIPS; FEDERAL ADJUSTMENTS.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions relating to federal adjustments. new text end
new text begin
Unless otherwise specified,
the definitions in this section apply for the purposes of sections 289A.381 to 289A.385.
new text end
new text begin Subd. 2. new text end
new text begin Administrative adjustment request. new text end
new text begin
"Administrative adjustment request"
means an administrative adjustment request filed by a partnership under section 6227 of
the Internal Revenue Code.
new text end
new text begin Subd. 3. new text end
new text begin Audited partnership. new text end
new text begin
"Audited partnership" means a partnership subject to a
federal adjustment resulting from a partnership-level audit.
new text end
new text begin Subd. 4. new text end
new text begin Corporate partner. new text end
new text begin
"Corporate partner" means a partner that is subject to tax
under section 290.02.
new text end
new text begin Subd. 5. new text end
new text begin Direct partner. new text end
new text begin
"Direct partner" means a partner that holds an immediate legal
ownership interest in a partnership or pass-through entity.
new text end
new text begin Subd. 6. new text end
new text begin Exempt partner. new text end
new text begin
"Exempt partner" means a partner that is exempt from taxes
on its net income under section 290.05, subdivision 1.
new text end
new text begin Subd. 7. new text end
new text begin Federal adjustment. new text end
new text begin
"Federal adjustment" means any change in an amount
calculated under the Internal Revenue Code, whether to income, gross estate, a credit, an
item of preference, or any other item that is used by a taxpayer to compute a tax administered
under this chapter for the reviewed year whether that change results from action by the
Internal Revenue Service or other competent authority, including a partnership-level audit,
or the filing of an amended federal return, federal refund claim, or an administrative
adjustment request by the taxpayer.
new text end
new text begin Subd. 8. new text end
new text begin Federal adjustments report. new text end
new text begin
"Federal adjustments report" includes a method
or form prescribed by the commissioner for use by a taxpayer to report federal adjustments,
including an amended Minnesota tax return or a uniform multistate report.
new text end
new text begin Subd. 9. new text end
new text begin Federal partnership representative. new text end
new text begin
"Federal partnership representative"
means the person the partnership designates for the taxable year as the partnership's
representative, or the person the Internal Revenue Service has appointed to act as the
partnership representative, pursuant to section 6223(a) of the Internal Revenue Code.
new text end
new text begin Subd. 10. new text end
new text begin Final determination date. new text end
new text begin
(a) "Final determination date" means:
new text end
new text begin
(1) for a federal adjustment arising from an audit by the Internal Revenue Service or
other competent authority, the first day on which no federal adjustment arising from that
audit remains to be finally determined, whether by agreement, or, if appealed or contested,
by a final decision with respect to which all rights of appeal have been waived or exhausted;
new text end
new text begin
(2) for a federal adjustment arising from the filing of an amended federal return, a federal
refund claim, or the filing by a partnership of an administrative adjustment request, the day
which the amended return, refund claim, or administrative adjustment request was filed; or
new text end
new text begin
(3) for agreements required to be signed by the Internal Revenue Service and the taxpayer,
the date on which the last party signed the agreement.
new text end
new text begin Subd. 11. new text end
new text begin Final federal adjustment. new text end
new text begin
"Final federal adjustment" means a federal
adjustment for which the final determination date for that federal adjustment has passed.
new text end
new text begin Subd. 12. new text end
new text begin Indirect partner. new text end
new text begin
"Indirect partner" means either:
new text end
new text begin
(1) a partner in a partnership or pass-through entity that itself holds an immediate legal
ownership interest in another partnership or pass-through entity; or
new text end
new text begin
(2) a partner in a partnership or pass-through entity that holds an indirect interest in
another partnership or pass-through entity through another indirect partner.
new text end
new text begin Subd. 13. new text end
new text begin Partner. new text end
new text begin
"Partner" means a person that holds an interest directly or indirectly
in a partnership or other pass-through entity.
new text end
new text begin Subd. 14. new text end
new text begin Partnership. new text end
new text begin
The term "partnership" has the meaning provided under section
7701(a)(2) of the Internal Revenue Code.
new text end
new text begin Subd. 15. new text end
new text begin Partnership-level audit. new text end
new text begin
"Partnership-level audit" means an examination by
the Internal Revenue Service at the partnership level pursuant to subtitle F, chapter 63,
subchapter C, of the Internal Revenue Code, which results in federal adjustments including
reallocation adjustments and adjustments to partnership-related items.
new text end
new text begin Subd. 16. new text end
new text begin Pass-through entity. new text end
new text begin
"Pass-through entity" means an entity, other than a
partnership, that is not subject to the tax imposed under section 290.02. The term pass-through
entity includes but is not limited to S corporations, estates, and trusts other than grantor
trusts.
new text end
new text begin Subd. 17. new text end
new text begin Reallocation adjustment. new text end
new text begin
"Reallocation adjustment" means a federal
adjustment, or final federal adjustment, that changes the shares of items of partnership
income, gain, loss, expense, or credit allocated to partners. The term positive reallocation
adjustment means reallocation adjustments that would increase state taxable income for
partners, and the term negative reallocation adjustment means reallocation adjustments that
would decrease state taxable income for partners.
new text end
new text begin Subd. 18. new text end
new text begin Resident partner. new text end
new text begin
"Resident partner" means an individual partner or individual
indirect partner who is a resident of Minnesota under section 290.01, subdivision 7.
new text end
new text begin Subd. 19. new text end
new text begin Reviewed year. new text end
new text begin
"Reviewed year" means the taxable year of a partnership that
is subject to a partnership-level audit from which federal adjustments arise.
new text end
new text begin Subd. 20. new text end
new text begin Tiered partner. new text end
new text begin
"Tiered partner" means any partner that is a partnership or
pass-through entity.
new text end
new text begin Subd. 21. new text end
new text begin Unrelated business taxable income. new text end
new text begin
"Unrelated business taxable income"
has the same meaning as defined in section 512 of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 6.
new text begin
[289A.382] REPORTING FEDERAL ADJUSTMENTS; GENERAL RULE.
new text end
new text begin
(a) Within 180 days of a final determination date, a taxpayer must file a federal adjustment
report with the commissioner reporting all final federal adjustments by the Internal Revenue
Service or other competent authority.
new text end
new text begin
(b) Within 180 days of a final determination date, a taxpayer must file a federal adjustment
report with the commissioner reporting any federal adjustments reported by the taxpayer
to the Internal Revenue Service, including but not limited to:
new text end
new text begin
(1) federal refund claims;
new text end
new text begin
(2) a change reported on a timely filed amended federal income tax return; and
new text end
new text begin
(3) a change reported on an amended return filed pursuant to section 6225(c) of the
Internal Revenue Code.
new text end
new text begin
(c) In the case of a final federal adjustment arising from a partnership-level audit or an
administrative adjustment request filed by a partnership under section 6227 of the Internal
Revenue Code, a taxpayer must report adjustments as provided for under section 289A.383,
and not this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 7.
new text begin
[289A.383] REPORTING AND PAYMENT REQUIREMENTS.
new text end
new text begin Subdivision 1. new text end
new text begin State partnership representative. new text end
new text begin
(a) With respect to an action required
or permitted to be taken by a partnership under this section, or in a proceeding under section
270C.35 or 271.06, the state partnership representative for the reviewed year shall have the
sole authority to act on behalf of the partnership, and its direct partners and indirect partners
shall be bound by those actions.
new text end
new text begin
(b) The state partnership representative for the reviewed year is the partnership's federal
partnership representative unless the partnership, in a form and manner prescribed by the
commissioner, designates another person as its state partnership representative.
new text end
new text begin Subd. 2. new text end
new text begin
Reporting and payment requirements for partnerships and tiered partners.
new text end
new text begin
(a) Unless an audited partnership makes the election in subdivision 3, then, for all final
federal adjustments the audited partnership must comply with paragraph (b) and each direct
partner of the audited partnership, other than a tiered partner, must comply with paragraph
(c).
new text end
new text begin
(b) No later than 90 days after the final determination date, the audited partnership must:
new text end
new text begin
(1) file a completed federal adjustment report, including all partner-level information
required under section 289A.12, subdivision 3, with the commissioner;
new text end
new text begin
(2) notify each of its direct partners of their distributive share of the adjustments;
new text end
new text begin
(3) file an amended composite report for all direct partners who were included in a
composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the
additional amount that would have been due had the federal adjustments been reported
properly as required; and
new text end
new text begin
(4) file amended withholding reports for all direct partners who were or should have
been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed
year, and pay the additional amount that would have been due had the federal adjustments
been reported properly as required.
new text end
new text begin
(c) No later than 180 days after the final determination date, each direct partner, other
than a tiered partner, that is subject to a tax administered under this chapter, other than the
sales tax, must:
new text end
new text begin
(1) file a federal adjustment report reporting their distributive share of the adjustments
reported to them under paragraph (b), clause (2); and
new text end
new text begin
(2) pay any additional amount of tax due as if the final federal adjustment had been
properly reported, plus any penalty and interest due under this chapter, and less any credit
for related amounts paid or withheld and remitted on behalf of the direct partner under
paragraph (b), clauses (3) and (4).
new text end
new text begin Subd. 3. new text end
new text begin Election; partnership or tiered partners pay. new text end
new text begin
(a) An audited partnership may
make an election under this subdivision to pay its assessment at the entity level. If an audited
partnership makes an election to pay its assessment at the entity level it must:
new text end
new text begin
(1) no later than 90 days after the final determination date, file a completed federal
adjustment report, including the residency information for all individual partners, both direct
and indirect, and information pertaining to all other partners as prescribed by the
commissioner, and notify the commissioner that it is making the election under this
subdivision; and
new text end
new text begin
(2) no later than 180 days after the final determination date, pay an amount, determined
as follows, in lieu of taxes on partners:
new text end
new text begin
(i) exclude from final federal adjustments and any positive reallocation adjustments the
distributive share of these adjustments made to an exempt partner that is not unrelated
business taxable income;
new text end
new text begin
(ii) exclude from final federal adjustments and any positive reallocation adjustments the
distributive share of these adjustments made to a partner that has filed a federal adjustment
report and paid the applicable tax, as required under subdivision 2, for the distributive share
of adjustments reported on a federal return under section 6225(c) of the Internal Revenue
Code;
new text end
new text begin
(iii) allocate at the partner level using section 290.17, subdivision 1, all final federal
adjustments and positive reallocation adjustments attributable to resident partners, both
direct and indirect, for the reviewed year;
new text end
new text begin
(iv) allocate and apportion at the partnership level using sections 290.17 to 290.20 all
remaining final federal adjustments and positive reallocation adjustments for the reviewed
year;
new text end
new text begin
(v) determine the total distributive share of the allocated and apportioned final federal
adjustments and positive reallocation adjustments determined in items (iii) and (iv) that are
attributable to:
new text end
new text begin
(A) resident partners;
new text end
new text begin
(B) corporate partners and exempt partners; and
new text end
new text begin
(C) the total distributive share amount allocated to all other partners;
new text end
new text begin
(vi) for the total distributive share of net final federal adjustments plus positive
reallocation adjustments attributed to corporate partners and exempt partners under item
(v), subitem (B), multiply the total by the highest tax rate in section 290.06, subdivision 1,
for the reviewed year, and calculate interest and penalties as applicable under this chapter;
new text end
new text begin
(vii) for the total distributive share of net final federal adjustments plus positive
reallocation adjustments attributable to resident partners, and all other partners under item
(v), subitems (A) and (C), multiply the total by the highest tax rate in section 290.06,
subdivision 2c, for the reviewed year, and calculate interest and penalties as applicable
under this chapter; and
new text end
new text begin
(viii) add the amount determined in item (vi) to the amount determined in item (vii),
and pay all applicable taxes, penalties, and interest to the commissioner.
new text end
new text begin
(b) An audited partnership may not make an election under this subdivision to report:
new text end
new text begin
(1) a federal adjustment, including a positive reallocation adjustment, that results in
unitary business income to a corporate partner required to file as a member of a combined
report under section 290.17, subdivision 4; or
new text end
new text begin
(2) any final federal adjustments resulting from an administrative adjustment request.
new text end
new text begin Subd. 4. new text end
new text begin Tiered partners and indirect partners. new text end
new text begin
(a) Each tiered partner and each
indirect partner of an audited partnership that reported final federal adjustments pursuant
to subdivision 2, paragraph (b), clause (1), or this subdivision, must:
new text end
new text begin
(1) within 90 days of the report comply with the filing, reporting, and payment
requirements of subdivision 2, paragraph (b); or
new text end
new text begin
(2) make the election under subdivision 3 as though it were the audited partnership.
new text end
new text begin
(b) Each direct partner in a partnership making a report under paragraph (a) must, within
180 days of the report, comply with the filing, reporting, and payment requirements of
subdivision 2, paragraph (c).
new text end
new text begin
(c) Notwithstanding the interim time requirements in this subdivision and subdivisions
2 and 3, all reports and payments required to be made by the tiered and indirect partners
under this section are required to be made within 90 days after the time for the filing and
furnishing of statements to tiered partners and their partners as established by the Internal
Revenue Service under section 6226 of the Internal Revenue Code.
new text end
new text begin Subd. 5. new text end
new text begin
Effects of election by partnership or tiered partner and payment of amount
due.
new text end
new text begin
(a) Unless the commissioner determines otherwise, the election under subdivision 3
is irrevocable.
new text end
new text begin
(b) If an audited partnership or tiered partner properly reports and pays an amount
determined in subdivision 3, the amount must be treated as paid in lieu of taxes owed by
the partnership's direct partners on the same final federal adjustments. The direct partners
and indirect partners of the partnership who are not resident partners may not take any
deduction or credit for this amount or claim a refund of the amount in this state.
new text end
new text begin
(c) Nothing in this subdivision precludes resident partners from claiming a credit against
taxes paid under section 290.06, on any amounts paid by the audited partnership or tiered
partners on the resident partner's behalf to another state or local tax jurisdiction.
new text end
new text begin Subd. 6. new text end
new text begin Failure of partnership or tiered partner to report or pay. new text end
new text begin
Nothing in this
section prevents the commissioner from assessing partners or indirect partners for taxes
they owe in the event that, for any reason, a partnership or tiered partner fails to timely
make any report or payment required by this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 8.
new text begin
[289A.384] ASSESSMENT OF TAX, INTEREST, PENALTIES, AND
ADDITIONAL AMOUNTS.
new text end
new text begin Subdivision 1. new text end
new text begin Assessment of additional tax, interest, and penalties. new text end
new text begin
The commissioner
may assess additional tax, interest, and penalties following a final federal adjustment:
new text end
new text begin
(1) arising from an audit by the Internal Revenue Service, including a partnership-level
audit;
new text end
new text begin
(2) reported by the taxpayer on an amended federal tax return; or
new text end
new text begin
(3) as part of an administrative adjustment request on or before the dates provided in
this section.
new text end
new text begin Subd. 2. new text end
new text begin Timely and untimely reported federal adjustments. new text end
new text begin
If a taxpayer files a
federal adjustment report, within or after the periods prescribed in section 289A.382 or
289A.383, the commissioner may assess additional Minnesota amounts related to the federal
adjustments including in-lieu-of amounts, taxes, interest, and penalties at the later of:
new text end
new text begin
(1) the expiration of the period of limitations in section 289A.38; or
new text end
new text begin
(2) the expiration of the one-year period following the date of the filing with the
commissioner of the federal adjustments report.
new text end
new text begin Subd. 3. new text end
new text begin Unreported reported federal adjustments. new text end
new text begin
If the taxpayer fails to file a federal
adjustments report, the commissioner may assess additional amounts related to the federal
adjustments including in-lieu-of amounts, taxes, penalties, and interest, at the later of:
new text end
new text begin
(1) the expiration of the period of limitations in section 289A.38; or
new text end
new text begin
(2) the expiration of the six-year period following the final determination date.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 9.
new text begin
[289A.385] CLAIMS FOR REFUND OR CREDITS OF STATE TAX
ARISING FROM FINAL FEDERAL ADJUSTMENTS MADE BY THE INTERNAL
REVENUE SERVICE.
new text end
new text begin
Notwithstanding the general period of limitations on claims for refund in section 289A.40,
taxpayers subject to the reporting requirements of sections 289A.382 and 289A.383 may
file claims for refund related to federal adjustments made by the Internal Revenue Service
on or before the last day for the assessment of tax under section 289A.384.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 10.
Minnesota Statutes 2016, section 289A.42, is amended to read:
289A.42 CONSENT TO EXTEND STATUTE.
Subdivision 1.
Extension agreement.
If before the expiration of time prescribed in
sections 289A.38new text begin to 289A.384new text end and 289A.40 for the assessment of tax or the filing of a claim
for refund, both the commissioner and the taxpayer have consented in writing to the
assessment or filing of a claim for refund after that time, the tax may be assessed or the
claim for refund filed at any time before the expiration of the agreed-upon period. The
period may be extended by later agreements in writing before the expiration of the period
previously agreed upon. The taxpayer and the commissioner may also agree to extend the
period for collection of the tax.
Subd. 2.
Federal extensions.
When a taxpayer consents to an extension of time for the
assessment of federal withholding or income taxes, the period in which the commissioner
may recompute the tax is also extended, notwithstanding any period of limitations to the
contrary, as follows:
(1) for the periods provided in section deleted text begin 289A.38, subdivisions 8 and 9deleted text end new text begin 289A.384,
subdivisions 2 and 3new text end ;
(2) for six months following the expiration of the extended federal period of limitations
when no change is made by the federal authority. deleted text begin If no change is made by the federal
authority, and, but for this subdivision, the commissioner's time period to adjust the tax has
expired, and if the commissioner has completed a field audit of the taxpayer, no additional
changes resulting in additional tax due or a refund may be made. For purposes of this
subdivision, "field audit" has the meaning given it in section 289A.38, subdivision 9.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 11.
Minnesota Statutes 2016, section 289A.60, subdivision 24, is amended to read:
Subd. 24.
Penalty for failure to notify of federal change.
If a person fails to report to
the commissioner a change or correction of the person's federal return in the manner and
time prescribed in deleted text begin section 289A.38, subdivision 7deleted text end new text begin sections 289A.382 and 289A.383new text end , there
must be added to the tax an amount equal to ten percent of the amount of any underpayment
of Minnesota tax attributable to the federal change.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 12.
Minnesota Statutes 2017 Supplement, section 290.31, subdivision 1, is amended
to read:
Subdivision 1.
Partners, not partnership, subject to tax.
Except as provided under
deleted text begin sectiondeleted text end new text begin sectionsnew text end 289A.35, paragraph (b),new text begin and 289A.383, subdivision 3,new text end a partnership as such
shall not be subject to the income tax imposed by this chapter, but is subject to the tax
imposed under section 290.0922. Persons carrying on business as partners shall be liable
for income tax only in their separate or individual capacities.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 13.
Minnesota Statutes 2016, section 297F.17, subdivision 6, is amended to read:
Subd. 6.
Time limit for bad debt refund.
Claims for refund must be filed with the
commissioner during the one-year period beginning with the timely filing of the taxpayer's
federal income tax return containing the bad debt deduction that is being claimed. Claimants
under this subdivision are subject to the notice requirements of deleted text begin section 289A.38, subdivision
7deleted text end new text begin sections 289A.382 and 289A.383new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 14.
Minnesota Statutes 2016, section 297G.16, subdivision 7, is amended to read:
Subd. 7.
Time limit for a bad debt deduction.
Claims for refund must be filed with
the commissioner within one year of the filing of the taxpayer's income tax return containing
the bad debt deduction that is being claimed. Claimants under this subdivision are subject
to the notice requirements of deleted text begin section 289A.38, subdivision 7deleted text end new text begin sections 289A.38 to 289A.384new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 15.
Minnesota Statutes 2016, section 469.319, subdivision 4, is amended to read:
Subd. 4.
Repayment procedures.
(a) For the repayment of taxes imposed under chapter
290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an
amended return with the commissioner of revenue and pay any taxes required to be repaid
within 30 days after becoming subject to repayment under this section. The amount required
to be repaid is determined by calculating the tax for the period or periods for which repayment
is required without regard to the exemptions and credits allowed under section 469.315.
(b) For the repayment of taxes imposed under chapter 297B, a business must pay any
taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of
revenue, within 30 days after becoming subject to repayment under this section.
(c) For the repayment of property taxes, the county auditor shall prepare a tax statement
for the business, applying the applicable tax extension rates for each payable year and
provide a copy to the business and to the taxpayer of record. The business must pay the
taxes to the county treasurer within 30 days after receipt of the tax statement. The business
or the taxpayer of record may appeal the valuation and determination of the property tax to
the Tax Court within 30 days after receipt of the tax statement.
(d) The provisions of chapters 270C and 289A relating to the commissioner's authority
to audit, assess, and collect the tax and to hear appeals are applicable to the repayment
required under paragraphs (a) and (b). The commissioner may impose civil penalties as
provided in chapter 289A, and the additional tax and penalties are subject to interest at the
rate provided in section 270C.40. The additional tax shall bear interest from 30 days after
becoming subject to repayment under this section until the date the tax is paid. Any penalty
imposed pursuant to this section shall bear interest from the date provided in section 270C.40,
subdivision 3, to the date of payment of the penalty.
(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add the
amount required to be repaid to the property taxes assessed against the property for payment
in the year following the year in which the auditor provided the statement under paragraph
(c).
(f) For determining the tax required to be repaid, a reduction of a state or local sales or
use tax is deemed to have been received on the date that the good or service was purchased
or first put to a taxable use. In the case of an income tax or franchise tax, including the credit
payable under section 469.318, a reduction of tax is deemed to have been received for the
two most recent tax years that have ended prior to the date that the business became subject
to repayment under this section. In the case of a property tax, a reduction of tax is deemed
to have been received for the taxes payable in the year that the business became subject to
repayment under this section and for the taxes payable in the prior year.
(g) The commissioner may assess the repayment of taxes under paragraph (d) any time
within two years after the business becomes subject to repayment under subdivision 1, or
within any period of limitations for the assessment of tax under deleted text begin section 289A.38deleted text end new text begin sections
289A.38 to 289A.384new text end , whichever period is later. The county auditor may send the statement
under paragraph (c) any time within three years after the business becomes subject to
repayment under subdivision 1.
(h) A business is not entitled to any income tax or franchise tax benefits, including
refundable credits, for any part of the year in which the business becomes subject to
repayment under this section nor for any year thereafter. Property is not exempt from tax
under section 272.02, subdivision 64, for any taxes payable in the year following the year
in which the property became subject to repayment under this section nor for any year
thereafter. A business is not eligible for any sales tax benefits beginning with goods or
services purchased or first put to a taxable use on the day that the business becomes subject
to repayment under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
Sec. 16. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2016, section 289A.38, subdivisions 7, 8, and 9,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end
ARTICLE 11
DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND CORPORATE
FRANCHISE TAXES; TECHNICAL CHANGES
Section 1.
Minnesota Statutes 2017 Supplement, section 290.0137, is amended to read:
290.0137 ACCELERATED RECOGNITION OF CERTAIN INSTALLMENT
SALE GAINS.
(a) In the case of a nonresident individual or a person who becomes a nonresident
individual during the tax year, taxable net income shall include the deleted text begin allocabledeleted text end amount realized
upon a sale of the assets of, or any interest in, an S corporation or partnership that operated
in Minnesota during the year of sale, including any income or gain to be recognized in future
years pursuant to an installment sale method of reporting under the Internal Revenue Code.
(1) For the purposes of this paragraph, an individual who becomes a nonresident of
Minnesota in any year after an installment sale is required to recognize the full amount of
any income or gain described in this paragraph on the individual's final Minnesota resident
tax return to the extent that such income has not been recognized in a prior year.
(2) For the purposes of this section, "realized" has the meaning given in section 1001(b)
of the Internal Revenue Code.
(3) For the purposes of this section, "installment sale" means any installment sale under
section 453 of the Internal Revenue Code and any other sale that is reported utilizing a
method of accounting authorized under subchapter E of the Internal Revenue Code that
allows taxpayers to delay reporting or recognizing a realized gain until a future year.
deleted text begin
(4) For the purposes of this section, "allocable amount" means the full amount to be
apportioned to Minnesota under section 290.191 or 290.20, or the full amount to be assigned
to Minnesota under section 290.17.
deleted text end
(b) Notwithstanding paragraph (a), nonresident taxpayers may elect to defer recognizing
unrecognized installment sale gains by making an election under this paragraph. The election
must be filed on a form to be determined or prescribed by the commissioner and must be
filed by the due date of the individual income tax return, including any extension. Electing
taxpayers must make an irrevocable agreement to:
(1) file Minnesota tax returns in all subsequent years when gains from the installment
sales are recognized and reported to the Internal Revenue Service;
(2) allocate gains to the state of Minnesota as though the gains were realized in the year
of sale under section 290.17, 290.191, or 290.20; and
(3) include all relevant federal tax documents reporting the installment sale with
subsequent Minnesota tax returns.
(c) Income or gain recognized for Minnesota purposes pursuant to paragraph (a) must
be excluded from taxable net income in any future year that the taxpayer files a Minnesota
tax return to the extent that the income or gain has already been subject to tax pursuant to
paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2016, section 290.06, subdivision 2c, is amended to read:
Subd. 2c.
Schedules of rates for individuals, estates, and trusts.
(a) The income taxes
imposed by this chapter upon married individuals filing joint returns and surviving spouses
as defined in section 2(a) of the Internal Revenue Code must be computed by applying to
their taxable net income the following schedule of rates:
(1) On the first $35,480, 5.35 percent;
(2) On all over $35,480, but not over $140,960, 7.05 percent;
(3) On all over $140,960, but not over $250,000, 7.85 percent;
(4) On all over $250,000, 9.85 percent.
Married individuals filing separate returns, estates, and trusts must compute their income
tax by applying the above rates to their taxable income, except that the income brackets
will be one-half of the above amountsnew text begin after the adjustment required in subdivision 2dnew text end .
(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first $24,270, 5.35 percent;
(2) On all over $24,270, but not over $79,730, 7.05 percent;
(3) On all over $79,730, but not over $150,000, 7.85 percent;
(4) On all over $150,000, 9.85 percent.
(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as
a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first $29,880, 5.35 percent;
(2) On all over $29,880, but not over $120,070, 7.05 percent;
(3) On all over $120,070, but not over $200,000, 7.85 percent;
(4) On all over $200,000, 9.85 percent.
(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax
of any individual taxpayer whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not more
than $100. The amount of tax for each bracket shall be computed at the rates set forth in
this subdivision, provided that the commissioner may disregard a fractional part of a dollar
unless it amounts to 50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the entire year must compute the
individual's Minnesota income tax as provided in this subdivision. After the application of
the nonrefundable credits provided in this chapter, the tax liability must then be multiplied
by a fraction in which:
(1) the numerator is the individual's Minnesota source federal adjusted gross income as
defined in section 62 of the Internal Revenue Code and increased bynew text begin :
new text end
new text begin (i)new text end the additions required under deleted text begin sectiondeleted text end new text begin sectionsnew text end 290.0131, subdivisions 2 and 6 to 11,new text begin
and 290.0137, paragraph (a);new text end and reduced by
new text begin (ii)new text end the Minnesota assignable portion of the subtraction for United States government
interest under section 290.0132, subdivision 2, deleted text begin anddeleted text end the subtractions under deleted text begin sectiondeleted text end new text begin sectionsnew text end
290.0132, subdivisions 9, 10, 14, 15, 17, and 18new text begin , and 290.0137, paragraph (c)new text end , after applying
the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted gross income as defined in section
62 of the Internal Revenue Code, increased bynew text begin :
new text end
new text begin (i)new text end the deleted text begin amounts specified in sectiondeleted text end new text begin additions required under sectionsnew text end 290.0131,
subdivisions 2 and 6 to 11,new text begin and 290.0137, paragraph (a);new text end and reduced by
new text begin (ii)new text end the deleted text begin amounts specified in sectiondeleted text end new text begin subtractions under sectionsnew text end 290.0132, subdivisions
2, 9, 10, 14, 15, 17, and 18new text begin , and 290.0137, paragraph (c)new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
The amendment to paragraph (a) is effective for taxable years
beginning after December 31, 2017. The amendment to paragraph (e) is effective the day
following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2016, section 290.06, subdivision 2d, is amended to read:
Subd. 2d.
Inflation adjustment of brackets.
(a) For taxable years beginning after
December 31, 2013, the minimum and maximum dollar amounts for each rate bracket for
which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage
determined under paragraph (b). For the purpose of making the adjustment as provided in
this subdivision all of the rate brackets provided in subdivision 2c shall be the rate brackets
as they existed for taxable years beginning after December 31, 2012, and before January 1,
2014. The rate applicable to any rate bracket must not be changed. The dollar amounts
setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate
brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in
$5, it must be rounded up to the nearest $10 amount.
(b) The commissioner shall adjust the rate brackets and by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section
1(f)(3)(B) the word "2012" shall be substituted for the word "1992." For 2014, the
commissioner shall then determine the percent change from the 12 months ending on August
31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent year, from
the 12 months ending on August 31, 2012, to the 12 months ending on August 31 of the
year preceding the taxable year.new text begin The commissioner shall determine the rate bracket for
married filing separate returns after this adjustment is done. The rate bracket for married
filing separate must be one-half of the rate bracket for married filing joint.new text end The determination
of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
not be subject to the Administrative Procedure Act contained in chapter 14.
No later than December 15 of each year, the commissioner shall announce the specific
percentage that will be used to adjust the tax rate brackets.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 4.
Minnesota Statutes 2016, section 290.92, subdivision 28, is amended to read:
Subd. 28.
Payments to horse racing license holders.
Effective with payments made
after April 1, 1988, any holder of a license issued by the Minnesota Racing Commission
who makes a payment for personal or professional services to a holder of a class C license
issued by the commission, except an amount paid as a purse, shall deduct from the payment
and withhold 6.25 percent of the amount as Minnesota withholding tax when the amount
paid to that individual by the same person during the calendar year exceeds $600. For
purposes of the provisions of this section, a payment to any person which is subject to
withholding under this subdivision must be treated as if the payment was a wage paid by
an employer to an employee. Every individual who is to receive a payment which is subject
to withholding under this subdivision shall furnish the license holder with a statement, made
under the penalties of perjury, containing the name, address, and Social Security account
number of the person receiving the payment. No withholding is required if the individual
presents a signed certificate from the individual's employer which states that the individual
is an employee of that employer. A nonresident individual who holds a class C license must
be treated as an athlete for purposes of applying the provisions of subdivision 4a and section
290.17, subdivision 2deleted text begin (1)(b)(ii)deleted text end new text begin (a)(2)(ii)new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2017 Supplement, section 462D.03, subdivision 2, is amended
to read:
Subd. 2.
Designation of qualified beneficiary.
(a) The account holder must designate
a first-time home buyer as the qualified beneficiary of the account deleted text begin by April 15 of the yeardeleted text end new text begin
in a form and manner prescribed by the commissionernew text end following the taxable year in which
the account was established. The account holder may be the qualified beneficiary. The
account holder may change the designated qualified beneficiary at any time, but no more
than one qualified beneficiary may be designated for an account at any one time. For purposes
of the one beneficiary restriction, a married couple qualifies as one beneficiary. Changing
the designated qualified beneficiary of an account does not affect computation of the ten-year
period under section 462D.06, subdivision 2.
(b) The commissioner shall establish a process for account holders to notify the state
that permits recording of the account, the account holder or holders, any transfers under
section 462D.04, subdivision 2, and the designated qualified beneficiary for each account.
This may be done upon filing the account holder's income tax return or in any other way
the commissioner determines to be appropriate.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 12
DEPARTMENT OF REVENUE; SALES AND USE TAXES; TECHNICAL CHANGES
Section 1.
Minnesota Statutes 2016, section 297A.68, subdivision 17, is amended to read:
Subd. 17.
Ships used in interstate commercenew text begin ; other vesselsnew text end .
Repair, replacement, and
rebuilding parts and materials, and lubricants, fornew text begin the following are exempt:
new text end
new text begin (1)new text end ships or vessels used or to be used principally in interstate or foreign commerce deleted text begin are
exempt.deleted text end new text begin ; and
new text end
new text begin (2)new text end vessels with a gross registered tonnage of at least 3,000 tons deleted text begin are exemptdeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2016, section 297A.68, subdivision 44, is amended to read:
Subd. 44.
Greater Minnesota business expansions.
(a) Purchases and use of tangible
personal property or taxable services by a qualified businessdeleted text begin , as defined in section 116J.8738,deleted text end
are exempt if:
(1) new text begin the commissioner of employment and economic development certifies to the
commissioner of revenue, in a format approved by the commissioner of revenue, that the
qualified business meets the requirements under section 116J.8738;
new text end
new text begin (2) new text end the business subsidy agreement provides that the exemption under this subdivision
applies;
deleted text begin (2)deleted text end new text begin (3)new text end the property or services are primarily used or consumed at the facility in greater
Minnesota identified in the business subsidy agreement; and
deleted text begin (3)deleted text end new text begin (4)new text end the purchase was made and delivery received during the duration of the
deleted text begin certification of the business as a qualified business under section 116J.8738deleted text end new text begin business subsidy
agreementnew text end .
(b) Purchase and use of construction materials and supplies used or consumed in, and
equipment incorporated into, the construction of improvements to real property in greater
Minnesota are exempt if the improvements after completion of construction are to be used
in the conduct of the trade or business of the qualified business, deleted text begin as defined in section
116J.8738deleted text end new text begin and the commissioner of employment and economic development certifies to
the commissioner of revenue, in a format approved by the commissioner of revenue, that
the qualified business meets the requirements under section 116J.8738new text end . This exemption
applies regardless of whether the purchases are made by the business or a contractor.
(c) The exemptions under this subdivision apply to a local sales and use tax.
(d) The tax on purchases imposed under this subdivision must be imposed and collected
as if the rate under section 297A.62 applied, and then refunded in the manner provided in
section 297A.75. The total amount refunded for a facility over the certification period is
limited to the amount listed in the business subsidy agreement. No more than $7,000,000
may be refunded in a fiscal year for all purchases under this subdivision. Refunds must be
allocated on a first-come, first-served basis. If more than $7,000,000 of eligible claims are
made in a fiscal year, claims by qualified businesses carry over to the next fiscal year, and
the commissionernew text begin of revenuenew text end must first allocate refunds to qualified businesses eligible for
a refund in the preceding fiscal year. Any portion of the balance of funds allocated for
refunds under this paragraph does not cancel and shall be carried forward to and available
for refunds in subsequent fiscal years. Notwithstanding section 297A.75, subdivision 4, for
an eligible refund claim that carries over to a subsequent fiscal year, the interest on the
amount carried over must be paid on the refund no sooner than from 90 days after July 1
of the fiscal year in which funds are available for the eligible claim.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2016, section 297A.71, subdivision 45, is amended to read:
Subd. 45.
Biopharmaceutical manufacturing facility.
(a) Materials and supplies used
or consumed in, capital equipment incorporated into, and privately owned infrastructure in
support of the construction, improvement, or expansion of a biopharmaceutical manufacturing
facility in the state are exempt ifnew text begin the commissioner of employment and economic
development certifies to the commissioner of revenue thatnew text end the following criteria are met:
(1) the facility is used for the manufacturing of biologics;
(2) the total capital investment made at the facility exceeds $50,000,000; and
(3) the facility creates and maintains at least 190 full-time equivalent positions at the
facility. These positions must be new jobs in Minnesota and not the result of relocating jobs
that currently exist in Minnesota.
(b) The tax must be imposed and collected as if the rate under section 297A.62 applied,
and refunded in the manner provided in section 297A.75.
(c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing facility
must:
(1) initially apply to the deleted text begin Departmentdeleted text end new text begin commissionernew text end of employment and economic
development for certification no later than one year from the final completion date of
construction, improvement, or expansion of the facility; and
(2) for each year that the owner of the biopharmaceutical manufacturing facility applies
for a refund, the deleted text begin ownerdeleted text end new text begin commissionernew text end must have received written certification from the
deleted text begin Departmentdeleted text end new text begin commissionernew text end of employment and economic development that the facility has
met the criteria of paragraph (a).
(d) The refund is to be paid annually at a rate of 25 percent of the total allowable refund
payable to date, with the commissioner making annual payments of the remaining refund
until all of the refund has been paid.
(e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are
interchangeable and mean medical drugs or medicinal preparations produced using
technology that uses biological systems, living organisms, or derivatives of living organisms
to make or modify products or processes for specific use. The medical drugs or medicinal
preparations include but are not limited to proteins, antibodies, nucleic acids, and vaccines.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2016, section 297A.77, is amended by adding a subdivision to
read:
new text begin Subd. 5. new text end
new text begin Records must be kept. new text end
new text begin
Every person liable for any tax imposed by this chapter,
or for the collection thereof, shall keep such records, render such statements, make such
returns, and comply with such rules, as the commissioner may from time to time prescribe.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 13
DEPARTMENT OF REVENUE; TOBACCO TAXES; TECHNICAL CHANGES
Section 1.
Minnesota Statutes 2016, section 297F.01, subdivision 19, is amended to read:
Subd. 19.
Tobacco products.
(a) "Tobacco products" means any product containing,
made, or derived from tobacco that is intended for human consumption, whether chewed,
smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or
any component, part, or accessory of a tobacco product, including, but not limited to, cigars;
cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking
tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing
tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds
and forms of tobacco; but does not include cigarettes as defined in this section.new text begin Tobacco
products includes vapor products.new text end Tobacco products excludes any tobacco product that has
been approved by the United States Food and Drug Administration for sale as a tobacco
cessation product, as a tobacco dependence product, or for other medical purposes, and is
being marketed and sold solely for such an approved purpose.
(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco
products includes a premium cigar, as defined in subdivision 13a.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2016, section 297F.01, is amended by adding a subdivision to
read:
new text begin Subd. 22b. new text end
new text begin Vapor products. new text end
new text begin
(a) "Vapor products" means any cartridge, bottle, or other
package that contains nicotine made or derived from tobacco, that is in a solution that is
consumed, or meant to be consumed, through the use of a heating element, power source,
electronic circuit, or other electronic, chemical, or mechanical means that produces vapor
from the nicotine. This paragraph expires December 31, 2018.
new text end
new text begin
(b) Beginning January 1, 2019, "vapor products" means any cartridge, bottle, or other
package that contains nicotine, including nicotine produced from sources other than tobacco,
that is in a solution that is consumed, or meant to be consumed, through the use of a heating
element, power source, electronic circuit, or other electronic, chemical, or mechanical means
that produces vapor from the nicotine.
new text end
new text begin
(c) Vapor products includes any electronic cigarette, electronic cigar, electronic cigarillo,
electronic pipe, or similar product or device, and any batteries, heating elements, or other
components, parts, or accessories sold with and meant to be used in the consumption of the
nicotine solution.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2016, section 297F.01, subdivision 23, is amended to read:
Subd. 23.
Wholesale sales price.
"Wholesale sales price" means the price at which a
distributor purchases a tobacco product. Wholesale sales price includes the applicable federal
excise tax, freight charges, or packaging costs, regardless of whether they were included in
the purchase price.new text begin Wholesale sales price of a vapor product does not include the cost of a
product, device, component, part, or accessory described in subdivision 22b that is sold
with a nicotine solution if the distributor sells the cartridge of nicotine solution separately
and can isolate the cost of the product, device, component, part, or accessory.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 14
DEPARTMENT OF REVENUE; PROPERTY TAXES; TECHNICAL CHANGES
Section 1.
Minnesota Statutes 2016, section 270C.85, subdivision 2, is amended to read:
Subd. 2.
Powers and duties.
The commissioner shall have and exercise the following
powers and duties in administering the property tax lawsdeleted text begin .deleted text end new text begin :
new text end
deleted text begin (a)deleted text end new text begin (1)new text end confer with, advise, and give the necessary instructions and directions to local
assessors and local boards of review throughout the state as to their duties under the laws
of the statedeleted text begin .deleted text end new text begin ;
new text end
deleted text begin (b)deleted text end new text begin (2)new text end direct proceedings, actions, and prosecutions to be instituted to enforce the laws
relating to the liability and punishment of public officers and officers and agents of
corporations for failure or negligence to comply with the provisions of the property tax
laws, and cause complaints to be made against local assessors, members of boards of
equalization, members of boards of review, or any other assessing or taxing officer, to the
proper authority, for their removal from office for misconduct or negligence of dutydeleted text begin .deleted text end new text begin ;
new text end
deleted text begin (c)deleted text end new text begin (3)new text end require county attorneys to assist in the commencement of prosecutions in actions
or proceedings for removal, forfeiture, and punishment, for violation of the property tax
laws in their respective districts or countiesdeleted text begin .deleted text end new text begin ;
new text end
deleted text begin (d)deleted text end new text begin (4)new text end require town, city, county, and other public officers to report new text begin and certify
new text end informationnew text begin , at the parcel level or in the aggregate,new text end as to the assessmentnew text begin and taxationnew text end ofnew text begin real
and personalnew text end property, and such other information as may be needful in the work of the
commissionerdeleted text begin , in such form as the commissioner may prescribedeleted text end .new text begin The commissioner shall
prescribe the content, format, manner, and time of filing of all required reports and
certifications;
new text end
deleted text begin (e)deleted text end new text begin (5)new text end transmit to the governor, on or before the third Monday in December of each
even-numbered year, and to each member of the legislature, on or before November 15 of
each even-numbered year, the report of the department for the preceding years, showing all
the taxable property subject to the property tax laws and the value of the same, in tabulated
formdeleted text begin .deleted text end new text begin ;
new text end
deleted text begin (f)deleted text end new text begin (6)new text end inquire into the methods of assessment and taxation and ascertain whether the
assessors faithfully discharge their dutiesdeleted text begin .deleted text end new text begin ; and
new text end
deleted text begin (g)deleted text end new text begin (7)new text end assist local assessors in determining the estimated market value of industrial
special-use property. For purposes of this deleted text begin paragraphdeleted text end new text begin clausenew text end , "industrial special-use property"
means property that:
deleted text begin (1)deleted text end new text begin (i) new text end is designed and equipped for a particular type of industry;
deleted text begin (2)deleted text end new text begin (ii) new text end is not easily adapted to some other use due to the unique nature of the facilities;
deleted text begin (3)deleted text end new text begin (iii) new text end has facilities totaling at least 75,000 square feet in size; and
deleted text begin (4)deleted text end new text begin (iv) new text end has a total estimated market value of $10,000,000 or greater based on the
assessor's preliminary determination.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2017 Supplement, section 270C.89, subdivision 1, is amended
to read:
Subdivision 1.
Initial report.
Each county assessor shall file deleted text begin by April 1deleted text end with the
commissioner a copy of deleted text begin the abstractdeleted text end new text begin preliminary assessment information that the
commissioner may require under section 270C.85, subdivision 2, clause (4),new text end that will be
acted upon by the local and county boards of review. deleted text begin The abstract must list the real and
personal property in the county itemized by assessment districts.deleted text end The assessor of each county
in the state shall file with the commissioner, within ten working days following final action
of the local board of review or equalization and within five days following final action of
the county board of equalization, any changes made by the local or county board. deleted text begin The
information must be filed in the manner prescribed by the commissioner.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2016, section 270C.89, subdivision 2, is amended to read:
Subd. 2.
Final report.
The final deleted text begin abstract of assessmentsdeleted text end new text begin assessment informationnew text end after
adjustments by the State Board of Equalization and inclusion of any omitted property shall
be deleted text begin submitteddeleted text end new text begin reportednew text end to the commissioner deleted text begin on or before September 1 of each calendar yeardeleted text end new text begin
under section 270C.85, subdivision 2, clause (4)new text end . deleted text begin The final abstract must separately report
the captured tax capacity of tax increment financing districts under section 469.177,
subdivision 2, the areawide net tax capacity contribution values determined under sections
276A.05, subdivision 1, and 473F.07, subdivision 1, and the value subject to the power line
credit under section 273.42.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2016, section 270C.91, is amended to read:
270C.91 RECORD OF PROCEEDINGS CHANGING NET TAX CAPACITY;
DUTIES OF COUNTY AUDITOR.
A record of all proceedings of the commissioner affecting any change in the net tax
capacity of any property, as revised by the State Board of Equalization, shall be kept by the
commissioner and a copy thereof, duly certified, shall be mailed each year to the auditor of
each county wherein such property is situated, on or before June 30 deleted text begin or 30 days after
submission of the abstract required by section 270C.89, whichever is laterdeleted text end . This record shall
specify the amounts or amount, or both, added to or deducted from the net tax capacity of
the real property of each of the several towns and cities, and of the real property not in towns
or cities, also the percent or amount of both, added to or deducted from the several classes
of personal property in each of the towns and cities, and also the amount added to or deducted
from the assessment of any person. The county auditor shall add to or deduct from such
tract or lot, or portion thereof, of any real property in the county the required percent or
amount, or both, on the net tax capacity thereof as it stood after equalized by the county
board, adding in each case a fractional sum of 50 cents or more, and deducting in each case
any fractional sum of less than 50 cents, so that no net tax capacity of any separate tract or
lot shall contain any fraction of a dollar; and add to, or deduct from, the several classes of
personal property in the county the required percent or amount, or both, on the net tax
capacity thereof as it stood after equalized by the county board, adding or deducting in
manner aforesaid any fractional sum so that no net tax capacity of any separate class of
personal property shall contain a fraction of a dollar, and add to or deduct from assessment
of any person, as they stood after equalization by the county board, the required amounts
to agree with the assessments as returned by the commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2016, section 273.061, subdivision 9, is amended to read:
Subd. 9.
Additional general duties.
Additional duties of the county assessor deleted text begin shall bedeleted text end new text begin
arenew text end as follows:
(1) to make all assessments, based upon the appraised values reported by the local
assessors or assistants and the county assessor's own knowledge of the value of the property
assessed;
(2) to personally view and determine the value of any property deleted text begin whichdeleted text end new text begin thatnew text end because of
its type or character may be difficult for the local assessor to appraise;
(3) to make all changes ordered by the local boards of review, relative to the net tax
capacity of the property of any individual, firm or corporation after notice has been given
and hearings held as provided by law;
(4) to enter all assessments in the assessment books, furnished by the county auditor,
with each book and the tabular statements for each book in correct balance;
(5) to prepare all assessment cards, charts, maps and any other forms prescribed by the
commissioner of revenue;
(6) to attend the meeting of the county board of equalization; to investigate and report
on any assessment ordered by said board; to enter all changes made by said board in the
assessment books and prepare deleted text begin the abstract of assessments for the commissioner of revenuedeleted text end new text begin
information reported to the commissioner under section 270C.85, subdivision 2, clause (4)new text end ;
to enter all changes made by the State Board of Equalization in the assessment books; to
deduct all exemptions authorized by law from each assessment and certify to the county
auditor the taxable value of each parcel of land, as described and listed in the assessment
books by the county auditor, and the taxable value of the personal property of each person,
firm, or corporation assessed;
(7) to investigate and make recommendations relative to all applications for the abatement
of taxes or applications for the reduction of the net tax capacity of any property;new text begin and
new text end
(8) to perform all other duties relating to the assessment of property for the purpose of
taxation which may be required by the commissioner of revenue.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2017 Supplement, section 273.0755, is amended to read:
273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.
(a) Beginning with the four-year period starting on July 1, 2000, every person licensed
by the state Board of Assessors at the Accredited Minnesota Assessor level or higher, shall
successfully complete a weeklong Minnesota laws course sponsored by the Department of
Revenue at least once in every four-year period. An assessor need not attend the course if
they successfully pass the test for the course.
(b) The commissioner of revenue may require that each county, and each city for which
the city assessor performs the duties of county assessor, have deleted text begin (i)deleted text end new text begin (1)new text end a person on the assessor's
staff who is certified by the Department of Revenue in sales ratio calculations, deleted text begin (ii)deleted text end new text begin (2)new text end an
officer or employee who is certified by the Department of Revenue in tax calculations, and
deleted text begin (iii)deleted text end new text begin (3)new text end an officer or employee who is certified by the Department of Revenue in the proper
preparation of deleted text begin abstracts of assessment. The commissioner of revenue may require that each
county have an officer or employee who is certified by the Department of Revenue in the
proper preparation of abstracts of tax listsdeleted text end new text begin information reported to the commissioner under
section 270C.85, subdivision 2, clause (4)new text end . Certifications under this paragraph expire after
four years.
(c) Beginning with the four-year educational licensing period starting on July 1, 2004,
every Minnesota assessor licensed by the State Board of Assessors must attend and participate
in a seminar that focuses on ethics, professional conduct and the need for standardized
assessment practices developed and presented by the commissioner of revenue. This
requirement must be met at least once in every subsequent four-year period. This requirement
applies to all assessors licensed for one year or more in the four-year period.
(d) When the commissioner of revenue determines that an individual or board that
performs functions related to property tax administration has performed those functions in
a manner that is not uniform or equitable, the commissioner may require that the individual
or members of the board complete supplemental training. The commissioner may not require
that an individual complete more than 32 hours of supplemental training pursuant to this
paragraph. If the individual is required to complete supplemental training due to that
individual's membership on a local or county board of appeal and equalization, the
commissioner may not require that the individual complete more than two hours of
supplemental training.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2016, section 273.113, subdivision 3, is amended to read:
Subd. 3.
Reimbursement for lost revenue.
The county auditor shall certify to the
commissioner of revenuedeleted text begin , as part of the abstracts of tax lists required to be filed with the
commissionerdeleted text end under section deleted text begin 275.29deleted text end new text begin 270C.85, subdivision 2, clause (4)new text end , the amount of tax
lost to the county from the property tax credit under subdivision 2. Any prior year adjustments
must also be certified deleted text begin in the abstracts of tax listsdeleted text end . The commissioner of revenue shall review
the certifications to determine their accuracy. The commissioner may make the changes in
the certification that are considered necessary or return a certification to the county auditor
for corrections. The commissioner shall reimburse each taxing district, other than school
districts, for the taxes lost. The payments must be made at the time provided in section
473H.10 for payment to taxing jurisdictions in the same proportion that the ad valorem tax
is distributed. Reimbursements to school districts must be made as provided in section
273.1392. The amount necessary to make the reimbursements under this section is annually
appropriated from the general fund to the commissioner of revenue.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2016, section 273.119, subdivision 2, is amended to read:
Subd. 2.
Reimbursement for lost revenue.
The county may transfer money from the
county conservation account created in section 40A.152 to the county revenue fund to
reimburse the fund for the cost of the property tax credit. The county auditor shall certify
to the commissioner of revenuedeleted text begin , as part of the abstracts of tax lists required to be filed with
the commissionerdeleted text end under section deleted text begin 275.29deleted text end new text begin 270C.85, subdivision 2, clause (4)new text end , the amount of
tax lost to the county from the property tax credit under subdivision 1 and the extent that
the tax lost exceeds funds available in the county conservation account. Any prior year
adjustments must also be certified deleted text begin in the abstracts of tax listsdeleted text end . The commissioner of revenue
shall review the certifications to determine their accuracy. The commissioner may make
the changes in the certification that are considered necessary or return a certification to the
county auditor for corrections. The commissioner shall reimburse each taxing district, other
than school districts, from the Minnesota conservation fund under section 40A.151 for the
taxes lost in excess of the county account. The payments must be made at the time provided
in section 473H.10, subdivision 3, for payment to taxing jurisdictions in the same proportion
that the ad valorem tax is distributed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2016, section 273.1231, subdivision 3, is amended to read:
Subd. 3.
Disaster or emergency area.
(a) "Disaster or emergency area" means a
geographic area for which:
(1)(i) the president of the United States, the secretary of agriculture, or the administrator
of the Small Business Administration has determined that a disaster exists pursuant to federal
law, or
(ii) a local emergency has been declared pursuant to section 12.29; and
(2) an application by the local unit of government requesting property tax relief under
this section has been received by the governor and approved by the executive council.
(b) The executive council must not approve an application unless:
(1) a completed disaster survey is included; and
(2) within the boundaries of the applicant, (i) the average damage for the buildings that
are damaged is at least $5,000, and (ii) either at least 25 taxable buildings were damaged,
or the total dollar amount of damage to all taxable buildings equals or exceeds one percent
of the total taxable market value of buildings for the applicant as reported to the commissioner
of revenue under section deleted text begin 270C.89, subdivision 2deleted text end new text begin 270C.85, subdivision 2, clause (4)new text end , for the
assessment in the year prior to the year of the damage.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2016, section 273.136, subdivision 2, is amended to read:
Subd. 2.
Reduction amounts submitted to county.
The commissioner of revenue shall
determine, not later than April 1 of each year, the amount of reduction resulting from section
273.135 in each county containing a tax relief area as defined by section 273.134, paragraph
(b), basing determinations on a review of deleted text begin abstracts of tax lists submitted by the county
auditors pursuant to section 275.29deleted text end new text begin information reported to the commissioner under section
270C.85, subdivision 2, clause (4)new text end . The commissioner may make changes deleted text begin in the abstracts
of tax listsdeleted text end as deemed necessary. The commissioner of revenue, after such review, shall
submit to the St. Louis County auditor, on or before April 15, the amount of the first half
payment payable hereunder and on or before September 15 the amount of the second half
payment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 11.
Minnesota Statutes 2016, section 273.1384, subdivision 3, is amended to read:
Subd. 3.
Credit reimbursements.
The county auditor shall determine the tax reductions
allowed under subdivision 2 within the county for each taxes payable year and shall certify
that amount to the commissioner of revenue deleted text begin as a part of the abstracts of tax lists submitted
by the county auditors under section 275.29deleted text end new text begin under section 270C.85, subdivision 2, clause
(4)new text end . Any prior year adjustments shall also be certified deleted text begin on the abstracts of tax listsdeleted text end . The
commissioner shall review the certifications for accuracy, and may make such changes as
are deemed necessary, or return the certification to the county auditor for correction. The
credit under this section must be used to proportionately reduce the net tax capacity-based
property tax payable to each local taxing jurisdiction as provided in section 273.1393.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2017 Supplement, section 273.1387, subdivision 3, is amended
to read:
Subd. 3.
Credit reimbursements.
The county auditor shall determine the tax reductions
allowed under this section within the county for each taxes payable year and shall certify
that amount to the commissioner of revenue deleted text begin as a part of the abstracts of tax lists submitted
under section 275.29deleted text end new text begin under section 270C.85, subdivision 2, clause (4)new text end . Any prior year
adjustments shall also be certified deleted text begin on the abstracts of tax listsdeleted text end . The commissioner shall
review the certifications for accuracy, and may make such changes as are deemed necessary,
or return the certification to the county auditor for correction. The credit under this section
must be used to reduce the school district net tax capacity-based property tax as provided
in section 273.1393.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13.
Minnesota Statutes 2016, section 273.18, is amended to read:
273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT PROPERTY
BY COUNTY AUDITORS.
(a) In every sixth year after the year 2010, the county auditor shall enter the description
of each tract of real property exempt by law from taxation, with the name of the owner, and
the assessor shall value and assess the same in the same manner that other real property is
valued and assessed, and shall designate in each case the purpose for which the property is
used.
(b) deleted text begin For purposes of the apportionment of fire state aid under section 69.021, subdivision
7,deleted text end The county auditor shall include deleted text begin on the abstract of assessment of exempt real property
filed under this sectiondeleted text end new text begin in the exempt property information that the commissioner may
require under section 270C.85, subdivision 2, clause (4)new text end , the total number of acres of all
natural resources lands for which in lieu payments are made under sections 477A.11 to
477A.14. The assessor shall estimate its market value, provided that if the assessor is not
able to estimate the market value of the land on a per parcel basis, the assessor shall furnish
the commissioner of revenue with an estimate of the average value per acre of this land
within the county.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2016, section 274.14, is amended to read:
274.14 LENGTH OF SESSION; RECORD.
The board must meet after the second Friday in June on at least one meeting day and
may meet for up to ten consecutive meeting days. The actual meeting dates must be contained
on the valuation notices mailed to each property owner in the county as provided in section
273.121. For 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 273.01 and 274.01. 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 revenuedeleted text begin , with the abstract of assessment required by section 274.16deleted text end new text begin within five days
following final action of the county board of equalizationnew text end .
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.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 15.
Minnesota Statutes 2016, section 274.16, is amended to read:
274.16 CORRECTED LISTSdeleted text begin , ABSTRACTSdeleted text end .
The county assessor or, in Ramsey County, the official designated by the board of county
commissioners shall calculate the changes of the assessment lists determined by the county
board of equalization, and make corrections accordingly, in the real or personal lists, or
both, and shall make deleted text begin duplicate abstractsdeleted text end new text begin duplicatesnew text end of them. One must be filed in the assessor's
office, and one must be forwarded to the commissioner of revenue as provided in section
270C.89.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 16.
Minnesota Statutes 2017 Supplement, section 275.025, subdivision 1, is amended
to read:
Subdivision 1.
Levy amount.
The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy for commercial-industrial property is $784,590,000
for taxes payable in 2018 and thereafter. The state general levy for seasonal-recreational
property is $44,190,000 for taxes payable in 2018 and thereafter. The tax under this section
is not treated as a local tax rate under section 469.177 and is not the levy of a governmental
unit under chapters 276A and 473F.
The commissioner shall increase or decrease the preliminary or final rate for a year as
necessary to account for errors and tax base changes that affected a preliminary or final rate
for either of the two preceding years. Adjustments are allowed to the extent that the necessary
information is available to the commissioner at the time the rates for a year must be certified,
and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported deleted text begin on the abstracts of tax lists submitted under section
275.29 that was not reported on the abstracts of assessment submitted under section 270C.89deleted text end new text begin
to the commissioner under section 270C.85, subdivision 2, clause (4),new text end for the same year.
The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 17.
Minnesota Statutes 2016, section 290B.09, subdivision 1, is amended to read:
Subdivision 1.
Determination; payment.
The county auditor shall determine the total
current year's deferred amount of property tax under this chapter in the county, and deleted text begin submitdeleted text end new text begin
reportnew text end those amounts deleted text begin as part of the abstracts of tax lists submitted by the county auditors
under section 275.29deleted text end new text begin to the commissioner under section 270C.85, subdivision 2, clause (4)new text end .
The commissioner may make changes deleted text begin in the abstracts of tax listsdeleted text end as deemed necessary. The
commissioner of revenue, after such review, shall pay the deferred amount of property tax
to each county treasurer on or before August 31.
The county treasurer shall distribute as part of the October settlement the funds received
as if they had been collected as a part of the property tax.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18.
Minnesota Statutes 2016, section 469.177, subdivision 1, is amended to read:
Subdivision 1.
Original net tax capacity.
(a) Upon or after adoption of a tax increment
financing plan, the auditor of any county in which the district is situated shall, upon request
of the authority, certify the original net tax capacity of the tax increment financing district
and that portion of the district overlying any subdistrict as described in the tax increment
financing plan and shall certify in each year thereafter the amount by which the original net
tax capacity has increased or decreased as a result of a change in tax exempt status of
property within the district and any subdistrict, reduction or enlargement of the district or
changes pursuant to subdivision 4. The auditor shall certify the amount within 30 days after
receipt of the request and sufficient information to identify the parcels included in the district.
The certification relates to the taxes payable year as provided in subdivision 6.
(b) If the classification under section 273.13 of property located in a district changes to
a classification that has a different assessment ratio, the original net tax capacity of that
property must be redetermined at the time when its use is changed as if the property had
originally been classified in the same class in which it is classified after its use is changed.
(c) The amount to be added to the original net tax capacity of the district as a result of
previously tax exempt real property within the district becoming taxable equals the net tax
capacity of the real property as most recently assessed pursuant to deleted text begin section 273.18deleted text end new text begin information
reported to the commissioner under section 270C.85, subdivision 2, clause (4),new text end or, if that
assessment was made more than one year prior to the date of title transfer rendering the
property taxable, the net tax capacity assessed by the assessor at the time of the transfer. If
improvements are made to tax exempt property after the municipality approves the district
and before the parcel becomes taxable, the assessor shall, at the request of the authority,
separately assess the estimated market value of the improvements. If the property becomes
taxable, the county auditor shall add to original net tax capacity, the net tax capacity of the
parcel, excluding the separately assessed improvements. If substantial taxable improvements
were made to a parcel after certification of the district and if the property later becomes tax
exempt, in whole or part, as a result of the authority acquiring the property through
foreclosure or exercise of remedies under a lease or other revenue agreement or as a result
of tax forfeiture, the amount to be added to the original net tax capacity of the district as a
result of the property again becoming taxable is the amount of the parcel's value that was
included in original net tax capacity when the parcel was first certified. The amount to be
added to the original net tax capacity of the district as a result of enlargements equals the
net tax capacity of the added real property as most recently certified by the commissioner
of revenue as of the date of modification of the tax increment financing plan pursuant to
section 469.175, subdivision 4.
(d) If the net tax capacity of a property increases because the property no longer qualifies
under the Minnesota Agricultural Property Tax Law, section 273.111; the Minnesota Open
Space Property Tax Law, section 273.112; or the Metropolitan Agricultural Preserves Act,
chapter 473H, the Rural Preserve Property Tax Program under section 273.114, or because
platted, unimproved property is improved or market value is increased after approval of the
plat under section 273.11, subdivision 14a or 14b, the increase in net tax capacity must be
added to the original net tax capacity. If the net tax capacity of a property increases because
the property no longer qualifies for the homestead market value exclusion under section
273.13, subdivision 35, the increase in net tax capacity must be added to original net tax
capacity if the original construction of the affected home was completed before the date the
assessor certified the original net tax capacity of the district.
(e) The amount to be subtracted from the original net tax capacity of the district as a
result of previously taxable real property within the district becoming tax exempt or
qualifying in whole or part for an exclusion from taxable market value, or a reduction in
the geographic area of the district, shall be the amount of original net tax capacity initially
attributed to the property becoming tax exempt, being excluded from taxable market value,
or being removed from the district. If the net tax capacity of property located within the tax
increment financing district is reduced by reason of a court-ordered abatement, stipulation
agreement, voluntary abatement made by the assessor or auditor or by order of the
commissioner of revenue, the reduction shall be applied to the original net tax capacity of
the district when the property upon which the abatement is made has not been improved
since the date of certification of the district and to the captured net tax capacity of the district
in each year thereafter when the abatement relates to improvements made after the date of
certification. The county auditor may specify reasonable form and content of the request
for certification of the authority and any modification thereof pursuant to section 469.175,
subdivision 4.
(f) If a parcel of property contained a substandard building or improvements described
in section 469.174, subdivision 10, paragraph (e), that were demolished or removed and if
the authority elects to treat the parcel as occupied by a substandard building under section
469.174, subdivision 10, paragraph (b), or by improvements under section 469.174,
subdivision 10, paragraph (e), the auditor shall certify the original net tax capacity of the
parcel using the greater of (1) the current net tax capacity of the parcel, or (2) the estimated
market value of the parcel for the year in which the building or other improvements were
demolished or removed, but applying the classification rates for the current year.
(g) For a redevelopment district qualifying under section 469.174, subdivision 10,
paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of
the land as the original tax capacity for any parcel in the district that contains a building
that suffered substantial damage as a result of the disaster or emergency.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2016, section 275.29,
new text end
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is repealed.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
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ARTICLE 15
DEPARTMENT OF REVENUE; MISCELLANEOUS; TECHNICAL CHANGES
Section 1.
Minnesota Statutes 2016, section 272.02, subdivision 27, is amended to read:
Subd. 27.
Superior National Forest; recreational property for use by deleted text begin disableddeleted text end
veteransnew text begin with a disabilitynew text end .
Real and personal property is exempt if it is located in the
Superior National Forest, and owned or leased and operated by a nonprofit organization
that is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue
Code and primarily used to provide recreational opportunities for deleted text begin disableddeleted text end veterans new text begin with a
disability new text end and their families.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2016, section 272.02, subdivision 81, is amended to read:
Subd. 81.
Certain recreational property for deleted text begin disableddeleted text end veteransnew text begin with a disabilitynew text end .
Real
and personal property is exempt if it is located in a county in the metropolitan area with a
population of less than 500,000 according to the 2000 federal census, and owned or leased
and operated by a nonprofit organization, and primarily used to provide recreational
opportunities for deleted text begin disableddeleted text end veterans new text begin with a disability new text end and their families.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2016, section 273.032, is amended to read:
273.032 MARKET VALUE DEFINITION.
(a) Unless otherwise provided, for the purpose of determining any property tax levy
limitation based on market value or any limit on net debt, the issuance of bonds, certificates
of indebtedness, or capital notes based on market value, any qualification to receive state
aid based on market value, or any state aid amount based on market value, the terms "market
value," "estimated market value," and "market valuation," whether equalized or unequalized,
mean the estimated market value of taxable property within the local unit of government
before any of the following or similar adjustments for:
(1) the market value exclusions under:
(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business properties);
(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
(v) section 273.13, subdivision 34 (homestead of a deleted text begin disableddeleted text end veteran new text begin with a disability new text end or
family caregiver); or
(vi) section 273.13, subdivision 35 (homestead market value exclusion); or
(2) the deferment of value under:
(i) the Minnesota Agricultural Property Tax Law, section 273.111;
(ii) the Aggregate Resource Preservation Law, section 273.1115;
(iii) the Minnesota Open Space Property Tax Law, section 273.112;
(iv) the rural preserves property tax program, section 273.114; or
(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
(3) the adjustments to tax capacity for:
(i) tax increment financing under sections 469.174 to 469.1794;
(ii) fiscal disparities under chapter 276A or 473F; or
(iii) powerline credit under section 273.425.
(b) Estimated market value under paragraph (a) also includes the market value of
tax-exempt property if the applicable law specifically provides that the limitation,
qualification, or aid calculation includes tax-exempt property.
(c) Unless otherwise provided, "market value," "estimated market value," and "market
valuation" for purposes of property tax levy limitations and calculation of state aid, refer
to the estimated market value for the previous assessment year and for purposes of limits
on net debt, the issuance of bonds, certificates of indebtedness, or capital notes refer to the
estimated market value as last finally equalized.
(d) For purposes of a provision of a home rule charter or of any special law that is not
codified in the statutes and that imposes a levy limitation based on market value or any limit
on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
value, the terms "market value," "taxable market value," and "market valuation," whether
equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2017 Supplement, section 273.13, subdivision 22, is amended
to read:
Subd. 22.
Class 1.
(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.
The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.
(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:
(1) any person who is blind as defined in section 256D.35, or the deleted text begin blinddeleted text end person new text begin who is
blind new text end and the deleted text begin blind person'sdeleted text end spousenew text begin of the person who is blindnew text end ;
(2) any person who is permanently and totally disabled or by the deleted text begin disableddeleted text end person new text begin with
a disability new text end and the deleted text begin disabled person'sdeleted text end spousenew text begin of the person with a disabilitynew text end ; or
(3) the surviving spouse of a new text begin veteran who was new text end permanently and totally disabled deleted text begin veterandeleted text end
homesteading a property classified under this paragraph for taxes payable in 2008.
Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.
Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.
Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of .45 percent of its market value. The remaining market
value of class 1b property is classified as class 1a or class 2a property, whichever is
appropriate.
(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
the Department of Natural Resources, and is devoted to temporary and seasonal residential
occupancy for recreational purposes but not devoted to commercial purposes for more than
250 days in the year preceding the year of assessment, and that includes a portion used as
a homestead by the owner, which includes a dwelling occupied as a homestead by a
shareholder of a corporation that owns the resort, a partner in a partnership that owns the
resort, or a member of a limited liability company that owns the resort even if the title to
the homestead is held by the corporation, partnership, or limited liability company. For
purposes of this paragraph, property is devoted to a commercial purpose on a specific day
if any portion of the property, excluding the portion used exclusively as a homestead, is
used for residential occupancy and a fee is charged for residential occupancy. Class 1c
property 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 1c property must provide recreational
activities such as the rental of 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. Any unit in which the right to use the property is transferred
to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
for class 1c even though it may remain available for rent. A camping pad offered for rent
by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
the same owner owns two separate parcels that are located in the same township, and one
of those properties is classified as a class 1c property and the other would be eligible to be
classified as a class 1c property if it was used as the homestead of the owner, both properties
will be assessed as a single class 1c property; for purposes of this sentence, properties are
deemed to be owned by the same owner if each of them is owned by a limited liability
company, and both limited liability companies have the same membership. The portion of
the property used as a homestead is class 1a property under paragraph (a). The remainder
of the property is classified as follows: the first $600,000 of market value is tier I, the next
$1,700,000 of market value is tier II, and any remaining market value is tier III. The
classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25
percent. Owners of real and personal property devoted to temporary and seasonal residential
occupancy for recreation purposes in which all or a portion of the property was devoted to
commercial purposes for not more than 250 days in the year preceding the year of assessment
desiring classification as class 1c, 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 as class 1c as otherwise provided.
The remainder of the cabins or units and a proportionate share of the land on which they
are located must be designated as class 3a commercial. The owner of property desiring
designation as class 1c property must provide guest registers or other records demonstrating
that the units for which class 1c 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 1c.
(d) Class 1d property includes structures that meet all of the following criteria:
(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;
(2) the structure is occupied exclusively by seasonal farm workers during the time when
they work on that farm, and the occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of farm equipment and produce
does not disqualify the property from classification under this paragraph;
(3) the structure meets all applicable health and safety requirements for the appropriate
season; and
(4) the structure is not salable as residential property because it does not comply with
local ordinances relating to location in relation to streets or roads.
The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).
new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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Sec. 5.
Minnesota Statutes 2017 Supplement, section 273.13, subdivision 34, is amended
to read:
Subd. 34.
Homestead of deleted text begin disableddeleted text end veteran new text begin with a disability new text end or family caregiver.
(a)
All or a portion of the market value of property owned by a veteran and serving as the
veteran's homestead under this section is excluded in determining the property's taxable
market value if the veteran has a service-connected disability of 70 percent or more as
certified by the United States Department of Veterans Affairs. To qualify for exclusion
under this subdivision, the veteran must have been honorably discharged from the United
States armed forces, as indicated by United States Government Form DD214 or other official
military discharge papers.
(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded,
except as provided in clause (2); and
(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.
(c) If a deleted text begin disableddeleted text end veteran new text begin with a disability new text end qualifying for a valuation exclusion under
paragraph (b), clause (2), predeceases the veteran's spouse, and if upon the death of the
veteran the spouse holds the legal or beneficial title to the homestead and permanently
resides there, the exclusion shall carry over to the benefit of the veteran's spouse for the
current taxes payable year and for eight additional taxes payable years or until such time
as the spouse remarries, or sells, transfers, or otherwise disposes of the property, whichever
comes first. Qualification under this paragraph requires an application under paragraph (h),
and a spouse must notify the assessor if there is a change in the spouse's marital status,
ownership of the property, or use of the property as a permanent residence.
(d) If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service-connected cause while serving honorably in active service, as
indicated on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is entitled to the
benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such
time as the spouse remarries or sells, transfers, or otherwise disposes of the property,
whichever comes first.
(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
for under paragraph (b).
(f) In the case of an agricultural homestead, only the portion of the property consisting
of the house and garage and immediately surrounding one acre of land qualifies for the
valuation exclusion under this subdivision.
(g) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 35, or classification under subdivision 22,
paragraph (b).
(h) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by July 1 of the first assessment year for which the exclusion is sought.
For an application received after July 1, the exclusion shall become effective for the following
assessment year. Except as provided in paragraph (c), the owner of a property that has been
accepted for a valuation exclusion must notify the assessor if there is a change in ownership
of the property or in the use of the property as a homestead.
(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.
(j) For purposes of this subdivision:
(1) "active service" has the meaning given in section 190.05;
(2) "own" means that the person's name is present as an owner on the property deed;
(3) "primary family caregiver" means a person who is approved by the secretary of the
United States Department of Veterans Affairs for assistance as the primary provider of
personal care services for an eligible veteran under the Program of Comprehensive Assistance
for Family Caregivers, codified as United States Code, title 38, section 1720G; and
(4) "veteran" has the meaning given the term in section 197.447.
(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion
under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit
under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries
or sells, transfers, or otherwise disposes of the property if:
(1) the spouse files a first-time application within two years of the death of the service
member or by June 1, 2019, whichever is later;
(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
homestead and permanently resides there;
(3) the veteran met the honorable discharge requirements of paragraph (a); and
(4) the United States Department of Veterans Affairs certifies that:
(i) the veteran met the total (100 percent) and permanent disability requirement under
paragraph (b), clause (2); or
(ii) the spouse has been awarded dependency and indemnity compensation.
(l) The purpose of this provision of law providing a level of homestead property tax
relief for deleted text begin gravely disableddeleted text end veteransnew text begin with a disabilitynew text end , their primary family caregivers, and
their surviving spouses is to help ease the burdens of war for those among our state's citizens
who bear those burdens most heavily.
(m) By July 1, the county veterans service officer must certify the disability rating and
permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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Sec. 6.
Minnesota Statutes 2016, section 289A.08, subdivision 6, is amended to read:
Subd. 6.
Returns of married persons.
deleted text begin A husband and wifedeleted text end new text begin Individuals who are married
to each othernew text end must file a joint Minnesota income tax return if they filed a joint federal income
tax return. If the deleted text begin husband and wifedeleted text end new text begin spousesnew text end have elected to file separate federal income tax
returns, they must file separate Minnesota income tax returns. This election to file a joint
or separate return must be changed if they change their election for federal purposes. In the
event taxpayers desire to change their election, the change must be done in the manner and
on the form prescribed by the commissioner.
The determination of whether an individual is married shall be made under the provisions
of section 7703 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2016, section 289A.25, subdivision 1, is amended to read:
Subdivision 1.
Requirements to pay.
An individual, trust, S corporation, or partnership
must, when prescribed in subdivision 3, paragraph (b), make payments of estimated tax.
For individuals, the term "estimated tax" means the amount the taxpayer estimates is the
sum of the taxes imposed by chapter 290 for the taxable year. For trusts, S corporations,
and partnerships, the term estimated tax means the amount the taxpayer estimates is the
sum of the taxes for the taxable year imposed by chapter 290 and the composite income tax
imposed by section 289A.08, subdivision 7. If the individual is an infant or incompetent
person, the payments must be made by the individual's guardian. If joint payments on
estimated tax are made but a joint return is not made for the taxable year, the estimated tax
for that year may be treated as the estimated tax of either deleted text begin the husband or the wifedeleted text end new text begin spousenew text end or
may be divided between them.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2016, section 289A.31, subdivision 2, is amended to read:
Subd. 2.
Joint income tax returns.
(a) If a joint income tax return is made by deleted text begin a husband
and wifedeleted text end new text begin spousesnew text end , the liability for the tax is joint and several. A spouse who qualifies for
relief from a liability attributable to an underpayment under section 6015(b) of the Internal
Revenue Code is relieved of the state income tax liability on the underpayment.
(b) In the case of individuals who were deleted text begin a husband and wifedeleted text end new text begin married as determined in
section 7703 of the Internal Revenue Codenew text end prior to the dissolution of their marriage or their
legal separation, or prior to the death of one of the individuals, for tax liabilities reported
on a joint or combined return, the liability of each person is limited to the proportion of the
tax due on the return that equals that person's proportion of the total tax due if deleted text begin the husband
and wifedeleted text end new text begin each spousenew text end filed separate returns for the taxable year. This provision is effective
only when the commissioner receives written notice of the marriage dissolution, legal
separation, or death of a spouse from the deleted text begin husband or wifedeleted text end new text begin surviving spousenew text end . No refund may
be claimed by an ex-spouse, legally separated or widowed spouse for any taxes paid more
than 60 days before receipt by the commissioner of the written notice.
(c) A request for calculation of separate liability pursuant to paragraph (b) for taxes
reported on a return must be made within six years after the due date of the return. For
calculation of separate liability for taxes assessed by the commissioner under section 289A.35
or 289A.37, the request must be made within six years after the date of assessment. The
commissioner is not required to calculate separate liability if the remaining unpaid liability
for which recalculation is requested is $100 or less.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2016, section 289A.37, subdivision 6, is amended to read:
Subd. 6.
Order of assessment if joint income tax return.
If a joint income tax return
is filed by deleted text begin a husband and wifedeleted text end new text begin spousesnew text end , an order of assessment may be a single joint notice.
If the commissioner has been notified by either spouse that that spouse's address has changed
and if that spouse requests it, then, instead of the single joint notice mailed to the last known
address of the deleted text begin husband and wifedeleted text end new text begin spousesnew text end , a duplicate or original of the joint notice must be
sent to the requesting spouse at the address designated by the requesting spouse. The other
joint notice must be mailed to the other spouse at that spouse's last known address. An
assessment is not invalid for failure to send it to a spouse if the spouse actually receives the
notice in the same period as if it had been mailed to that spouse at the correct address or if
the spouse has failed to provide an address to the commissioner other than the last known
address.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2016, section 290.0802, subdivision 2, is amended to read:
Subd. 2.
Subtraction.
(a) A qualified individual is allowed a subtraction from federal
taxable income of the individual's subtraction base amount. The excess of the subtraction
base amount over the taxable net income computed without regard to the subtraction for
the elderly or deleted text begin disableddeleted text end new text begin a person with a disabilitynew text end under section 290.0132, subdivision 5,
may be used to reduce the amount of a lump sum distribution subject to tax under section
290.032.
(b)(1) The initial subtraction base amount equals
(i) $12,000 for a married taxpayer filing a joint return if a spouse is a qualified individual,
(ii) $9,600 for a single taxpayer, and
(iii) $6,000 for a married taxpayer filing a separate federal return.
(2) The qualified individual's initial subtraction base amount, then, must be reduced by
the sum of nontaxable retirement and disability benefits and one-half of the amount of
adjusted gross income in excess of the following thresholds:
(i) $18,000 for a married taxpayer filing a joint return if both spouses are qualified
individuals,
(ii) $14,500 for a single taxpayer or for a married couple filing a joint return if only one
spouse is a qualified individual, and
(iii) $9,000 for a married taxpayer filing a separate federal return.
(3) In the case of a qualified individual who is under the age of 65, the maximum amount
of the subtraction base may not exceed the taxpayer's disability income.
(4) The resulting amount is the subtraction base amount.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 11.
Minnesota Statutes 2016, section 290.0802, subdivision 3, is amended to read:
Subd. 3.
Restrictions; married couples.
Except in the case of deleted text begin a husband and wifedeleted text end new text begin
spousesnew text end who live apart at all times during the taxable year, if the taxpayer is married at the
close of the taxable year, the subtraction under subdivision 2 is allowable only if the taxpayers
file joint federal and state income tax returns for the taxable year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2017 Supplement, section 290.091, subdivision 2, is amended
to read:
Subd. 2.
Definitions.
For purposes of the tax imposed by this section, the following
terms have the meanings given.
(a) "Alternative minimum taxable income" means the sum of the following for the taxable
year:
(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
taxable income, but excluding:
(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
(ii) the medical expense deduction;
(iii) the casualty, theft, and disaster loss deduction; and
(iv) the impairment-related work expenses of a deleted text begin disableddeleted text end personnew text begin with a disabilitynew text end ;
(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2; and
(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;
less the sum of the amounts determined under the following:
(i) interest income as defined in section 290.0132, subdivision 2;
(ii) an overpayment of state income tax as provided by section 290.0132, subdivision
3, to the extent included in federal alternative minimum taxable income;
(iii) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing federal adjusted gross income;
(iv) amounts subtracted from federal taxable income as provided by section 290.0132,
subdivisions 7, 9 to 15, 17, 21, 24, and 26; and
(v) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c).
In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Code.
(b) "Investment interest" means investment interest as defined in section 163(d)(3) of
the Internal Revenue Code.
(c) "Net minimum tax" means the minimum tax imposed by this section.
(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
under this chapter.
(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13.
Minnesota Statutes 2017 Supplement, section 290A.03, subdivision 3, is amended
to read:
Subd. 3.
Income.
(a) "Income" means the sum of the following:
(1) federal adjusted gross income as defined in the Internal Revenue Code; and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;
(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;
(xiii) nontaxable scholarship or fellowship grants;
(xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;
(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and
(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.
(b) "Income" does not include:
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;
(4) surplus food or other relief in kind supplied by a governmental agency;
(5) relief granted under this chapter;
(6) child support payments received under a temporary or final decree of dissolution or
legal separation; or
(7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16.
(c) The sum of the following amounts may be subtracted from income:
(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(5) for the claimant's fifth dependent, the exemption amount; and
(6) if the claimant or claimant's spouse deleted text begin was disableddeleted text end new text begin had a disabilitynew text end or attained the age
of 65 on or before December 31 of the year for which the taxes were levied or rent paid,
the exemption amount.
(d) For purposes of this subdivision, the "exemption amount" means the exemption
amount under section 151(d) of the Internal Revenue Code for the taxable year for which
the income is reported; "retirement base amount" means the deductible amount for the
taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue
Code, adjusted for inflation as provided in section 219(b)(5)(C) of the Internal Revenue
Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional
or Roth style retirement account or plan" means retirement plans under sections 401, 403,
408, 408A, and 457 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2016, section 290A.03, subdivision 4, is amended to read:
Subd. 4.
Household.
"Household" means a claimant and an individual related to the
claimant as deleted text begin husband or wifedeleted text end new text begin the claimant's spousenew text end who are domiciled in the same homestead.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 15.
Minnesota Statutes 2017 Supplement, section 290A.03, subdivision 8, is amended
to read:
Subd. 8.
Claimant.
(a) "Claimant" means a person, other than a dependent, as defined
under sections 151 and 152 of the Internal Revenue Code disregarding section 152(b)(3)
of the Internal Revenue Code, who filed a claim authorized by this chapter and who was a
resident of this state as provided in chapter 290 during the calendar year for which the claim
for relief was filed.
(b) In the case of a claim relating to rent constituting property taxes, the claimant shall
have resided in a rented or leased unit on which ad valorem taxes or payments made in lieu
of ad valorem taxes, including payments of special assessments imposed in lieu of ad valorem
taxes, are payable at some time during the calendar year covered by the claim.
(c) "Claimant" shall not include a resident of a nursing home, intermediate care facility,
long-term residential facility, or a facility that accepts housing support payments whose
rent constituting property taxes is paid pursuant to the Supplemental Security Income
program under title XVI of the Social Security Act, the Minnesota supplemental aid program
under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
of the Social Security Act, or the housing support program under chapter 256I.
If only a portion of the rent constituting property taxes is paid by these programs, the
resident shall be a claimant for purposes of this chapter, but the refund calculated pursuant
to section 290A.04 shall be multiplied by a fraction, the numerator of which is income as
defined in subdivision 3, paragraphs (a) and (b), reduced by the total amount of income
from the above sources other than vendor payments under the medical assistance program
and the denominator of which is income as defined in subdivision 3, paragraphs (a) and (b),
plus vendor payments under the medical assistance program, to determine the allowable
refund pursuant to this chapter.
(d) Notwithstanding paragraph (c), if the claimant was a resident of the nursing home,
intermediate care facility, long-term residential facility, or facility for which the rent was
paid for the claimant by the housing support program for only a portion of the calendar year
covered by the claim, the claimant may compute rent constituting property taxes by
disregarding the rent constituting property taxes from the nursing home or facility and use
only that amount of rent constituting property taxes or property taxes payable relating to
that portion of the year when the claimant was not in the facility. The claimant's household
income is the income for the entire calendar year covered by the claim.
(e) In the case of a claim for rent constituting property taxes of a part-year Minnesota
resident, the income and rental reflected in this computation shall be for the period of
Minnesota residency only. Any rental expenses paid which may be reflected in arriving at
federal adjusted gross income cannot be utilized for this computation. When two individuals
of a household are able to meet the qualifications for a claimant, they may determine among
them as to who the claimant shall be. If they are unable to agree, the matter shall be referred
to the commissioner of revenue whose decision shall be final. If a homestead property owner
was a part-year Minnesota resident, the income reflected in the computation made pursuant
to section 290A.04 shall be for the entire calendar year, including income not assignable to
Minnesota.
(f) If a homestead is occupied by two or more renters, who are not deleted text begin husband and wifedeleted text end new text begin
married to each othernew text end , the rent shall be deemed to be paid equally by each, and separate
claims shall be filed by each. The income of each shall be each renter's household income
for purposes of computing the amount of credit to be allowed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 16.
Minnesota Statutes 2016, section 290A.05, is amended to read:
290A.05 COMBINED HOUSEHOLD INCOME.
If a person occupies a homestead with another person deleted text begin or personsdeleted text end not related to the person
as deleted text begin husband and wifedeleted text end new text begin the person's spousenew text end , excluding dependents, roomers or boarders on
contract, and has property tax payable with respect to the homestead, the household income
of the claimant or claimants for the purpose of computing the refund allowed by section
290A.04 shall include the total income received by the other persons residing in the
homestead. For purposes of this section, "dependent" includes a parent of the claimant or
spouse who lives in the claimant's homestead and does not have an ownership interest in
the homestead. If a person occupies a homestead with another person or persons not relatednew text begin
to the personnew text end as deleted text begin husband and wifedeleted text end new text begin the person's spousenew text end or as dependents, the property tax
payable or rent constituting property tax shall be reduced as follows.
If the other person or persons are residing at the homestead under rental or lease
agreement, the amount of property tax payable or rent constituting property tax shall be that
portion not covered by the rental agreement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 17.
Minnesota Statutes 2016, section 290A.08, is amended to read:
290A.08 ONE CLAIMANT PER HOUSEHOLD.
Only one claimant per household per year is entitled to relief under this chapter. Payment
of the claim for relief may be made payable to the deleted text begin husband and wifedeleted text end new text begin spousesnew text end as one claimant.
The commissioner, upon written request, may issue separate checks, to the deleted text begin husband and
wifedeleted text end new text begin spousesnew text end for one-half of the relief provided the original check has not been issued or
has been returned. Individuals related as deleted text begin husband and wifedeleted text end new text begin spousesnew text end who were married during
the year may elect to file a joint claim which shall include each spouse's income, rent
constituting property taxes, and property taxes payable. deleted text begin Husbands and wivesdeleted text end new text begin Spousesnew text end who
were married for the entire year and were domiciled in the same household for the entire
year must file a joint claim. The maximum dollar amount allowable for a joint claim shall
not exceed the amount that one person could receive.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18.
Minnesota Statutes 2016, section 290A.09, is amended to read:
290A.09 PROOF OF CLAIM.
Every claimant shall supply to the commissioner of revenue, in support of the claim,
proof of eligibility under this chapter, including but not limited to amount of rent paid or
property taxes accrued, name and address of owner or managing agent of property rented,
changes in homestead, household membership, household income, size and nature of property
claimed as a homestead.
deleted text begin Disableddeleted text end Personsnew text begin with a disabilitynew text end filing claims shall submit proof of disability in the
form and manner as the commissioner may prescribe. The department may require
examination and certification by the claimant's physician or by a physician designated by
the commissioner. The cost of any examination shall be borne by the claimant, unless the
examination proves the disability, in which case the cost of the examination shall be borne
by the commissioner.
A determination of disability of a claimant by the Social Security Administration under
Title II or Title XVI of the Social Security Act shall constitute presumptive proof of disability.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19.
Minnesota Statutes 2016, section 297A.61, subdivision 18, is amended to read:
Subd. 18.
deleted text begin Disableddeleted text end new text begin Person with a disabilitynew text end .
"deleted text begin Disableddeleted text end new text begin Person with a disabilitynew text end " means
an individual who has a permanent and total disability as defined in section 273.13,
subdivision 22.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 20.
Minnesota Statutes 2017 Supplement, section 297A.67, subdivision 6, is amended
to read:
Subd. 6.
Other exempt meals.
(a) Prepared food, candy, and soft drinks purchased for
and served exclusively to individuals who are 60 years of age or over and their spouses or
to deleted text begin disableddeleted text end personsnew text begin with a disabilitynew text end and their spouses by governmental agencies, nonprofit
organizations, or churches, or pursuant to any program funded in whole or in part through
United States Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or
served, are exempt. Taxable food sold through vending machines is not exempt.
(b) Prepared food, candy, and soft drinks purchased for and served exclusively to children
who are less than 14 years of age or deleted text begin disableddeleted text end childrennew text begin with a disabilitynew text end who are less than
16 years of age and who are attending a child care or early childhood education program,
are exempt if they are:
(1) purchased by a nonprofit child care facility that is exempt under section 297A.70,
subdivision 4, and that primarily serves families with income of 250 percent or less of
federal poverty guidelines; and
(2) prepared at the site of the child care facility.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 21.
Minnesota Statutes 2016, section 297A.67, subdivision 12, is amended to read:
Subd. 12.
Parts and accessories used to make a motor vehicle deleted text begin disableddeleted text end accessiblenew text begin
to a person with a disabilitynew text end .
Parts, accessories, and labor charges that are used solely to
modify a motor vehicle to make it deleted text begin disableddeleted text end accessiblenew text begin to persons with a disabilitynew text end are exempt.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 22.
Minnesota Statutes 2016, section 297A.70, subdivision 3, is amended to read:
Subd. 3.
Sales of certain goods and services to government.
(a) The following sales
to or use by the specified governments and political subdivisions of the state are exempt:
(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and fire
apparatus to a political subdivision;
(2) machinery and equipment, except for motor vehicles, used directly for mixed
municipal solid waste management services at a solid waste disposal facility as defined in
section 115A.03, subdivision 10;
(3) chore and homemaking services to a political subdivision of the state to be provided
to elderlynew text begin individualsnew text end or deleted text begin disabled individualsdeleted text end new text begin persons with a disabilitynew text end ;
(4) telephone services to the Office of MN.IT Services that are used to provide
telecommunications services through the MN.IT services revolving fund;
(5) firefighter personal protective equipment as defined in paragraph (b), if purchased
or authorized by and for the use of an organized fire department, fire protection district, or
fire company regularly charged with the responsibility of providing fire protection to the
state or a political subdivision;
(6) bullet-resistant body armor that provides the wearer with ballistic and trauma
protection, if purchased by a law enforcement agency of the state or a political subdivision
of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1;
(7) motor vehicles purchased or leased by political subdivisions of the state if the vehicles
are exempt from registration under section 168.012, subdivision 1, paragraph (b), exempt
from taxation under section 473.448, or exempt from the motor vehicle sales tax under
section 297B.03, clause (12);
(8) equipment designed to process, dewater, and recycle biosolids for wastewater
treatment facilities of political subdivisions, and materials incidental to installation of that
equipment;
(9) the removal of trees, bushes, or shrubs for the construction and maintenance of roads,
trails, or firebreaks when purchased by an agency of the state or a political subdivision of
the state;
(10) purchases by the Metropolitan Council or the Department of Transportation of
vehicles and repair parts to equip operations provided for in section 174.90, including, but
not limited to, the Northstar Corridor Rail project; and
(11) purchases of water used directly in providing public safety services by an organized
fire department, fire protection district, or fire company regularly charged with the
responsibility of providing fire protection to the state or a political subdivision.
(b) For purposes of this subdivision, "firefighters personal protective equipment" means
helmets, including face shields, chin straps, and neck liners; bunker coats and pants, including
pant suspenders; boots; gloves; head covers or hoods; wildfire jackets; protective coveralls;
goggles; self-contained breathing apparatus; canister filter masks; personal alert safety
systems; spanner belts; optical or thermal imaging search devices; and all safety equipment
required by the Occupational Safety and Health Administration.
(c) For purchases of items listed in paragraph (a), clause (10), the tax must be imposed
and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded
in the manner provided in section 297A.75.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 23.
Minnesota Statutes 2017 Supplement, 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;
(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 deleted text begin physically
disableddeleted text end new text begin persons with a physical disabilitynew text end ;
(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit
purposes, not including housing, no part of the net earnings of which inures to the benefit
of any private shareholders; and
(iii) is an exempt organization under section 501(c) of the Internal Revenue Code; and
(3) an organization that qualifies for an exemption for memberships under subdivision
12 if the item is purchased and used in the performance of the organization's mission.
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;
(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2),
and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67,
subdivision 2, except wine purchased by an established religious organization for sacramental
purposes or as allowed under subdivision 9a; and
(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as
provided in paragraph (c).
(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01,
subdivision 11, only if the vehicle is:
(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and used
for carrying more than nine persons including the driver; and
(2) intended to be used primarily to transport tangible personal property or individuals,
other than employees, to whom the organization provides service in performing its charitable,
religious, or educational purpose.
(d) A limited liability company also qualifies for exemption under this subdivision if
(1) it consists of a sole member that would qualify for the exemption, and (2) the items
purchased qualify for the exemption.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 24.
Minnesota Statutes 2016, section 297A.70, subdivision 16, is amended to read:
Subd. 16.
Camp fees.
Fees to camps or other recreation facilities are exempt for:
(1) services primarily for children, adults accompanying children, or persons with
deleted text begin disabilitiesdeleted text end new text begin a disabilitynew text end ; or
(2) educational or religious activities;
deleted text begin anddeleted text end new text begin ifnew text end the camp or facilities are owned and operated by an exempt organization under section
501(c)(3) of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 25.
Minnesota Statutes 2016, section 297A.71, subdivision 22, is amended to read:
Subd. 22.
Materials used to make residential property deleted text begin disableddeleted text end accessiblenew text begin to persons
with a disabilitynew text end .
Building materials and equipment sold to, or stored, used, or consumed
by, a nonprofit organization are exempt if:
(1) the materials and equipment are used or incorporated into modifying an existing
residential structure to make it deleted text begin disableddeleted text end accessiblenew text begin to persons with a disabilitynew text end ; and
(2) the materials and equipment used in the modification would qualify for an exemption
under either subdivision 11 or 12 if made by the current owner of the residence.
For purposes of this subdivision, "nonprofit organization" means any nonprofit
corporation, society, association, foundation, or institution organized and operated exclusively
for charitable, religious, educational, or civic purposes; or a veterans' group exempt from
federal taxation under section 501(c), clause (19), of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 26.
Minnesota Statutes 2017 Supplement, section 297A.75, subdivision 1, is amended
to read:
Subdivision 1.
Tax collected.
The tax on the gross receipts from the sale of the following
exempt items must be imposed and collected as if the sale were taxable and the rate under
section 297A.62, subdivision 1, applied. The exempt items include:
(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;
(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14;
(3) building materials for correctional facilities under section 297A.71, subdivision 3;
(4) building materials used in a residence for deleted text begin disableddeleted text end veteransnew text begin with a disabilitynew text end exempt
under section 297A.71, subdivision 11;
(5) elevators and building materials exempt under section 297A.71, subdivision 12;
(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;
(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;
(8) equipment and materials used for the generation, transmission, and distribution of
electrical energy and an aerial camera package exempt under section 297A.68, subdivision
37;
(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);
(10) materials, supplies, and equipment for construction or improvement of projects and
facilities under section 297A.71, subdivision 40;
(11) materials, supplies, and equipment for construction, improvement, or expansion
of:
(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014,
section 297A.71, subdivision 42;
(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
45;
(iii) a research and development facility exempt under Minnesota Statutes 2014, section
297A.71, subdivision 46; and
(iv) an industrial measurement manufacturing and controls facility exempt under
Minnesota Statutes 2014, section 297A.71, subdivision 47;
(12) enterprise information technology equipment and computer software for use in a
qualified data center exempt under section 297A.68, subdivision 42;
(13) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
(14) items purchased for use in providing critical access dental services exempt under
section 297A.70, subdivision 7, paragraph (c);
(15) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44;
(16) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 49; and
(17) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 50, paragraph (b).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 27.
Minnesota Statutes 2016, section 297B.01, subdivision 14, is amended to read:
Subd. 14.
Purchase price.
(a) "Purchase price" means the total consideration valued
in money for a sale, whether paid in money or otherwise. The purchase price excludes the
amount of a manufacturer's rebate paid or payable to the purchaser. If a motor vehicle is
taken in trade as a credit or as part payment on a motor vehicle taxable under this chapter,
the credit or trade-in value allowed by the person selling the motor vehicle shall be deducted
from the total selling price to establish the purchase price of the vehicle being sold and the
trade-in allowance allowed by the seller shall constitute the purchase price of the motor
vehicle accepted as a trade-in. The purchase price in those instances where the motor vehicle
is acquired by gift or by any other transfer for a nominal or no monetary consideration shall
also include the average value of similar motor vehicles, established by standards and guides
as determined by the motor vehicle registrar. The purchase price in those instances where
a motor vehicle is manufactured by a person who registers it under the laws of this state
shall mean the manufactured cost of such motor vehicle and manufactured cost shall mean
the amount expended for materials, labor, and other properly allocable costs of manufacture,
except that in the absence of actual expenditures for the manufacture of a part or all of the
motor vehicle, manufactured costs shall mean the reasonable value of the completed motor
vehicle.
(b) The term "purchase price" shall not include the portion of the value of a motor vehicle
due solely to modifications necessary to make the motor vehicle deleted text begin disabilitydeleted text end accessiblenew text begin to
persons with a disabilitynew text end .
(c) The term "purchase price" shall not include the transfer of a motor vehicle by way
of gift between deleted text begin a husband and wifedeleted text end new text begin spousesnew text end or parent and child, or to a nonprofit organization
as provided under subdivision 16, paragraph (c), clause (6), nor shall it include the transfer
of a motor vehicle by a guardian to a ward when there is no monetary consideration and the
title to such vehicle was registered in the name of the guardian, as guardian, only because
the ward was a minor.
(d) The term "purchase price" shall not include the transfer of a motor vehicle as a gift
between a foster parent and foster child. For purposes of this subdivision, a foster relationship
exists, regardless of the age of the child, if (1) a foster parent's home is or was licensed as
a foster family home under Minnesota Rules, parts 2960.3000 to 2960.3340, and (2) the
county verifies that the child was a state ward or in permanent foster care.
(e) There shall not be included in "purchase price" the amount of any tax imposed by
the United States upon or with respect to retail sales whether imposed upon the retailer or
the consumer.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 28.
Minnesota Statutes 2017 Supplement, section 297B.01, subdivision 16, is amended
to read:
Subd. 16.
Sale, sells, selling, purchase, purchased, or acquired.
(a) "Sale," "sells,"
"selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor
vehicle, whether absolutely or conditionally, for a consideration in money or by exchange
or barter for any purpose other than resale in the regular course of business.
(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or
by holding it in an effort to so lease it, and which is put to no other use by the owner other
than resale after such lease or effort to lease, shall be considered property purchased for
resale.
(c) The terms also shall include any transfer of title or ownership of a motor vehicle by
other means, for or without consideration, except that these terms shall not include:
(1) the acquisition of a motor vehicle by inheritance from or by bequest of, or
transfer-on-death of title by, a decedent who owned it;
(2) the transfer of a motor vehicle which was previously licensed in the names of two
or more joint tenants and subsequently transferred without monetary consideration to one
or more of the joint tenants;
(3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer
licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with
no monetary or other consideration or expectation of consideration and the parties to the
transfer submit an affidavit to that effect at the time the title transfer is recorded;
(4) the transfer of a motor vehicle by gift between:
(i) spouses;
(ii) parents and a child; or
(iii) grandparents and a grandchild;
(5) the voluntary or involuntary transfer of a motor vehicle between deleted text begin a husband and wifedeleted text end new text begin
spousesnew text end in a divorce proceeding; or
(6) the transfer of a motor vehicle by way of a gift to an organization that is exempt from
federal income taxation under section 501(c)(3) of the Internal Revenue Code when the
motor vehicle will be used exclusively for religious, charitable, or educational purposes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 29.
Laws 2017, First Special Session chapter 1, article 8, section 3, the effective date,
is amended to read:
EFFECTIVE DATE.
This section is effective for new text begin (1) new text end petitions and appeals filed after
June 30, 2017new text begin , for which notices of entry of order are mailed before July 1, 2018, and (2)
notices of entry of order mailed after June 30, 2018new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
APPENDIX
Repealed Minnesota Statutes: H0947-1
275.29 ABSTRACTS TO COMMISSIONER OF REVENUE.
Not later than March 31, in each year, the county auditor shall make and transmit to the commissioner of revenue, in such form as may be prescribed by the commissioner of revenue, complete abstracts of the tax lists of the county, showing the number of acres of land assessed; its value, including the structures thereon; the value of town and city lots, including structures; the total value of all taxable personal property in the several assessment districts; the aggregate amount of all taxable property in the county, and the total amount of taxes levied therein for state, county, town, and all other purposes for that year.
289A.38 LIMITATIONS ON TIME FOR ASSESSMENT OF TAX.
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 any period, 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.
Subd. 8.
Failure to report change or correction of federal return.
If a taxpayer fails to make a report as required by subdivision 7, the commissioner may recompute the tax, including a refund, based on information available to the commissioner. The tax may be recomputed within six years after the report should have been filed, notwithstanding any period of limitations to the contrary.
Subd. 9.
Report made of change or correction of federal return.
If a taxpayer is required to make a report under subdivision 7, and does report the change or files a copy of the amended return, the commissioner may recompute and reassess the tax due, including a refund (1) within one year after the report or amended return is filed with the commissioner, notwithstanding any period of limitations to the contrary, or (2) within any other applicable period stated in this section, whichever period is longer. The period provided for the carryback of any amount of loss or credit is also extended as provided in this subdivision, notwithstanding any law to the contrary. If the commissioner has completed a field audit of the taxpayer, and, but for this subdivision, the commissioner's time period to adjust the tax has expired, the additional tax due or refund is limited to only those changes that are required to be made to the return which relate to the changes made on the federal return. This subdivision does not apply to sales and use tax.
For purposes of this subdivision and section 289A.42, subdivision 2, a "field audit" is the physical presence of examiners in the taxpayer's or taxpayer's representative's office conducting an examination of the taxpayer with the intention of issuing an assessment or notice of change in tax or which results in the issuing of an assessment or notice of change in tax. The examination may include inspecting a taxpayer's place of business, tangible personal property, equipment, computer systems and facilities, pertinent books, records, papers, vouchers, computer printouts, accounts, and documents.
290.0131 INDIVIDUALS; ADDITIONS TO FEDERAL TAXABLE INCOME.
Subd. 7.
Fines, fees, and penalties.
The amount of expenses disallowed under section 290.10, subdivision 2, is an addition.
Subd. 11.
Income attributable to domestic production activities.
The amount of the deduction allowable under section 199 of the Internal Revenue Code is an addition.
290.0133 CORPORATIONS; ADDITIONS TO FEDERAL TAXABLE INCOME.
Subd. 13.
Income attributable to domestic production activities.
The amount of the deduction allowable under section 199 of the Internal Revenue Code is an addition.
Subd. 14.
Fines, fees, and penalties.
The amount of expenses disallowed under section 290.10, subdivision 2, is an addition.
290.067 DEPENDENT CARE CREDIT.
No active language found for: 290.067.2a
290.0921 CORPORATE ALTERNATIVE MINIMUM TAX AFTER 1989.
Subdivision 1.
Tax imposed.
In addition to the taxes computed under this chapter without regard to this section, the franchise tax imposed on corporations includes a tax equal to the excess, if any, for the taxable year of:
(1) 5.8 percent of Minnesota alternative minimum taxable income; over
(2) the tax imposed under section 290.06, subdivision 1, without regard to this section.
Subd. 2.
Definitions.
(a) For purposes of this section, the following terms have the meanings given them.
(b) "Alternative minimum taxable net income" is alternative minimum taxable income,
(1) less the exemption amount, and
(2) apportioned or allocated to Minnesota under section 290.17, 290.191, or 290.20.
(c) The "exemption amount" is $40,000, reduced, but not below zero, by 25 percent of the excess of alternative minimum taxable income over $150,000.
(d) "Minnesota alternative minimum taxable income" is alternative minimum taxable net income, less the deductions for alternative tax net operating loss under subdivision 4; and dividends received under subdivision 6. The sum of the deductions under this paragraph may not exceed 90 percent of alternative minimum taxable net income. This limitation does not apply to:
(1) a deduction for dividends paid to or received from a corporation which is subject to tax under section 290.36 and which is a member of an affiliated group of corporations as defined by the Internal Revenue Code; or
(2) a deduction for dividends received from a property and casualty insurer as defined under section 60A.60, subdivision 8, which is a member of an affiliated group of corporations as defined by the Internal Revenue Code and either: (i) the dividend is eliminated in consolidation under Treasury Regulation 1.1502-14(a), as amended through December 31, 1989; or (ii) the dividend is deducted under an election under section 243(b) of the Internal Revenue Code.
Subd. 3.
Alternative minimum taxable income.
"Alternative minimum taxable income" is Minnesota net income as defined in section 290.01, subdivision 19, and includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), (f), and (h) of the Internal Revenue Code. If a corporation files a separate company Minnesota tax return, the minimum tax must be computed on a separate company basis. If a corporation is part of a tax group filing a unitary return, the minimum tax must be computed on a unitary basis. The following adjustments must be made.
(1) The portion of the depreciation deduction allowed for federal income tax purposes under section 168(k) of the Internal Revenue Code that is required as an addition under section 290.0133, subdivision 11, is disallowed in determining alternative minimum taxable income.
(2) The subtraction for depreciation allowed under section 290.0134, subdivision 13, is allowed as a depreciation deduction in determining alternative minimum taxable income.
(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) of the Internal Revenue Code does not apply.
(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal Revenue Code does not apply.
(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue Code does not apply.
(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal Revenue Code does not apply.
(7) The tax preference for charitable contributions of appreciated property under section 57(a)(6) of the Internal Revenue Code does not apply.
(8) For purposes of calculating the adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable income" as it is used in section 56(g) of the Internal Revenue Code, means alternative minimum taxable income as defined in this subdivision, determined without regard to the adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
(9) For purposes of determining the amount of adjusted current earnings under section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend gross-up subtracted as provided in section 290.0134, subdivision 2, or (ii) the amount of refunds of income, excise, or franchise taxes subtracted as provided in section 290.0134, subdivision 8.
(10) Alternative minimum taxable income excludes the income from operating in a job opportunity building zone as provided under section 469.317.
Items of tax preference must not be reduced below zero as a result of the modifications in this subdivision.
Subd. 3a.
Exemptions.
The following entities are exempt from the tax imposed by this section:
(1) cooperatives taxable under subchapter T of the Internal Revenue Code or organized under chapter 308 or a similar law of another state;
(2) corporations subject to tax under section 297I.05, subdivisions 1 to 5;
(3) real estate investment trusts;
(4) regulated investment companies or a fund thereof;
(5) entities having a valid election in effect under section 860D(b) of the Internal Revenue Code; and
(6) small corporations exempt from the federal alternative minimum tax under section 55(e) of the Internal Revenue Code.
Subd. 4.
Alternative tax net operating loss.
(a) An alternative tax net operating loss deduction is allowed from alternative minimum taxable net income equal to the net operating loss deduction allowable for the taxable year under section 290.095 with the following modifications:
(1) The amount of the net operating loss deduction must not exceed 90 percent of alternative minimum taxable net income.
(2) In determining the amount of the net operating loss deduction (i) the net operating loss under section 290.095 must be adjusted as provided in paragraph (b), and (ii) for taxable years beginning after December 31, 1989, section 290.095, subdivision 3, must be applied by substituting "90 percent of alternative minimum taxable net income" for "taxable net income."
(b) For a loss year beginning after December 31, 1989, the net operating loss for each year under section 290.095 must be (1) determined with the adjustments provided in sections 56 and 58 of the Internal Revenue Code, as modified by subdivision 3 and (2) reduced by the items of tax preference for the year determined under section 57 of the Internal Revenue Code, as modified by subdivision 3.
Subd. 6.
Dividends received.
(a) A deduction is allowed from alternative minimum taxable net income equal to the deduction for dividends received under section 290.21, subdivision 4, for purposes of calculating taxable income under section 290.01, subdivision 29.
(b) The amount of the deduction must not exceed 90 percent of alternative minimum taxable net income.
This limitation does not apply to:
(1) dividends paid to or received from a corporation which is subject to tax under section 290.36 and which is a member of an affiliated group of corporations as defined by the Internal Revenue Code; or
(2) dividends received from a property and casualty insurer as defined under section 60A.60, subdivision 8, which is a member of an affiliated group of corporations as defined by the Internal Revenue Code and either: (i) the dividend is eliminated in consolidation under Treasury Regulation 1.1502-14(a), as amended through December 31, 1989; or (ii) the dividend is deducted under an election under section 243(b) of the Internal Revenue Code.
290.10 NONDEDUCTIBLE ITEMS.
Subd. 2.
Fines, fees, and penalties.
(a) Except as provided in this subdivision, no deduction from taxable income for a trade or business expense under section 162(a) of the Internal Revenue Code shall be allowed for any amount paid or incurred, whether by suit, agreement, or otherwise, to, or at the direction of, a government or entity described in paragraph (d) in relation to the violation of any law or the investigation or inquiry by such government or entity into the potential violation of any law.
(b) Exception for amounts constituting restitution or paid to come into compliance with the law. Paragraph (a) does not apply to any amount which:
(1) the taxpayer establishes:
(i) constitutes restitution, including remediation of property for damage or harm caused by or which may be caused by the violation of any law or the potential violation of any law; or
(ii) is paid to come into compliance with any law which was violated or involved in the investigation or inquiry; and
(2) is identified as restitution or as an amount paid to come into compliance with the law, as the case may be, in the court order or settlement agreement.
This paragraph does not apply to any amount paid or incurred as reimbursement to the government or entity for the costs of any investigation or litigation.
(c) Paragraph (a) does not apply to any amount paid or incurred by order of a court in a suit in which no government or entity described in paragraph (d) is a party.
(d) An entity is described in this paragraph if it is:
(1) a nongovernmental entity which exercises self-regulatory powers, including imposing sanctions, in connection with a qualified board or exchange, as defined in section 1256(g)(7) of the Internal Revenue Code; or
(2) to the extent provided in federal regulations, a nongovernmental entity which exercises self-regulatory powers, including imposing sanctions, as part of performing an essential governmental function.
(e) Paragraph (a) does not apply to any amount paid or incurred as taxes due.