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Capital IconMinnesota Legislature

HF 991

1st Unofficial Engrossment - 92nd Legislature (2021 - 2022) Posted on 08/12/2021 03:54pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 2.1
2.2 2.3
2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 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 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 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 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 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
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 12.1 12.2
12.3 12.4
12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 13.35 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24
14.25 14.26
14.27 14.28 14.29 14.30 14.31 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 16.1 16.2
16.3 16.4
16.5 16.6 16.7 16.8 16.9 16.10 16.11
16.12 16.13 16.14
16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30
16.31 16.32
17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33
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 21.31 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10
22.11 22.12
22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 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 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8
25.9 25.10
25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 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
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 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 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 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
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 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
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 35.31 35.32 35.33
36.1 36.2
36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19
36.20
36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 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 38.29 38.30 38.31 38.32 38.33 38.34 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 39.35 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28
42.29 42.30 42.31 42.32
43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32
45.33 45.34
46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28
46.29
47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 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
49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10
49.11
49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25
49.26
49.27 49.28 49.29 49.30 49.31 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 51.34 51.35 51.36 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 55.33 55.34 55.35 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 56.34 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 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 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 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 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 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 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 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 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
68.1 68.2
68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 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 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 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 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 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 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
75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33
75.34 75.35
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 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 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10
78.11 78.12 78.13
78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23
78.24 78.25 78.26
78.27 78.28 78.29 78.30 78.31 78.32 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 80.32 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
82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14
82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23
82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 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 84.28 84.29 84.30 84.31 84.32 84.33 84.34 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28
85.29 85.30 85.31 85.32 85.33 85.34 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 87.31 87.32 87.33 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 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 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10
90.11 90.12 90.13 90.14
90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 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 91.34
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 96.1 96.2
96.3 96.4 96.5 96.6
96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 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 98.33 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30
99.31 99.32 100.1 100.2
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
102.1 102.2 102.3 102.4
102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22
103.23 103.24 103.25 103.26
103.27 103.28
103.29 103.30 103.31 103.32 103.33 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18
104.19 104.20 104.21
104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24
105.25 105.26 105.27
105.28 105.29 105.30 105.31 105.32 105.33 105.34 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 107.1 107.2 107.3 107.4
107.5 107.6 107.7
107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17
108.18 108.19 108.20
108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 108.33 108.34 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 109.34
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
111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21
112.22 112.23 112.24
112.25 112.26 112.27 112.28 112.29 112.30 112.31 112.32 112.33 112.34 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33
114.1 114.2 114.3
114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 114.34 115.1 115.2 115.3 115.4 115.5
115.6 115.7 115.8
115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 115.33 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16
116.17 116.18 116.19
116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32 116.33 116.34 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28
117.29 117.30 117.31
118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 118.34 119.1 119.2 119.3 119.4
119.5 119.6 119.7
119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11
120.12 120.13 120.14
120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 120.33 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19
121.20 121.21 121.22
121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 121.33 121.34 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 123.1 123.2 123.3 123.4
123.5 123.6 123.7
123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11
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
126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 127.33 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9
128.10 128.11 128.12
128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 128.31 128.32 128.33 128.34 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19
129.20 129.21 129.22
129.23 129.24
129.25 129.26 129.27 129.28 129.29
129.30
130.1 130.2 130.3 130.4 130.5 130.6
130.7
130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 132.1 132.2 132.3 132.4 132.5 132.6
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
132.29 132.30 132.31 133.1 133.2 133.3
133.4
133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23
134.24
134.25 134.26 134.27 134.28 134.29 134.30 134.31 134.32 135.1 135.2
135.3
135.4 135.5 135.6 135.7 135.8 135.9 135.10

A bill for an act
relating to financing and operation of state and local government; providing
conformity to certain federal tax law changes; modifying individual income and
corporate franchise taxes, sales and use taxes, partnership taxes, excise taxes,
property taxes and tax increment financing; providing provisions related to local
taxes and other miscellaneous taxes and tax provisions; providing for various
individual and corporate subtractions to income; modifying certain income tax
credits and authorizing new credits; providing for a pass-through entity tax;
modifying existing and providing new sales tax exemptions; modifying existing
local taxes and authorizing new local taxes; modifying classification provisions
related to relative homesteads and class 4d; authorizing fire protection and
emergency medical services special taxing districts; modifying the state general
tax; establishing a property tax credit; allowing for certain special assessments;
modifying property tax and renters' refunds; providing for supplemental aid;
requiring a report; appropriating money; amending Minnesota Statutes 2020,
sections 16A.152, subdivision 2; 116J.8737, subdivisions 5, 12; 144F.01; 270A.04,
by adding a subdivision; 270B.13, by adding a subdivision; 270C.445, subdivision
6; 273.124, subdivisions 1, 9, 13; 273.128, subdivision 2, by adding subdivisions;
273.13, subdivisions 25, 34; 273.1392; 273.1393; 275.025, subdivisions 1, 2;
275.065, subdivision 3; 275.066; 276.04, subdivision 2; 289A.08, by adding a
subdivision; 289A.20, subdivision 4; 289A.31, subdivision 1; 289A.37, subdivision
2; 289A.38, subdivisions 7, 8, 9, 10; 289A.42; 289A.60, subdivision 24; 290.0132,
subdivision 4, by adding subdivisions; 290.06, subdivision 22, by adding a
subdivision; 290.0674, subdivision 2; 290.0681, subdivisions 3, 4, 10, by adding
a subdivision; 290.31, subdivision 1; 290.92, subdivisions 4b, 4c; 290A.03,
subdivision 3; 297A.70, subdivision 13; 297A.71, by adding a subdivision;
297A.75, subdivisions 1, 2, 3; 297A.77, subdivision 3; 297A.993, subdivision 2;
297F.10, subdivision 1; 297F.17, subdivision 6; 297G.16, subdivision 7; 297I.20,
by adding a subdivision; 298.28, subdivisions 5, 9b; 429.021, subdivision 1;
429.031, subdivision 3; 453A.04, subdivision 21, by adding a subdivision; 465.71;
469.319, subdivision 4; 475.56; 475.58, subdivision 3b; 475.60, subdivision 1;
475.67, subdivision 8; 477A.016; Laws 2019, First Special Session chapter 6,
article 6, section 27; proposing coding for new law in Minnesota Statutes, chapters
270C; 273; 289A; 290; 297A; 299C; 462A; repealing Minnesota Statutes 2020,
section 469.055, subdivision 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

FEDERAL UPDATE

Section 1.

Minnesota Statutes 2020, section 289A.08, is amended by adding a subdivision
to read:


new text begin Subd. 7a. new text end

new text begin Pass-through entity tax. new text end

new text begin (a) For the purposes of this subdivision, the following
terms have the meanings given:
new text end

new text begin (1) "income" has the meaning given in subdivision 7, paragraph (j), except that the
provisions that apply to a partnership apply to a qualifying entity and the provisions that
apply to a partner apply to a qualifying owner. The income of both a resident and nonresident
qualifying owner is allocated and assigned to this state as provided for nonresident partners
and shareholders under section 290.17;
new text end

new text begin (2) "qualifying owner" means a resident or nonresident individual, estate, or trust that
is a partner, member, or shareholder of a qualifying entity; and
new text end

new text begin (3) "qualifying entity" means a partnership, limited liability company, or corporation
organized under subchapter S of the Internal Revenue Code for federal income tax purposes,
including a qualified subsidiary also organized under subchapter S of the Internal Revenue
Code. Qualifying entity does not include a partnership, limited liability company, or
corporation that has a partnership, limited liability company, or corporation as a partner,
member, or shareholder.
new text end

new text begin (b) A qualifying entity may elect to file a return and pay the pass-through entity tax
imposed under paragraph (c). The election:
new text end

new text begin (1) must be made on or before the due date or extended due date of the qualifying entity's
pass-through entity tax return;
new text end

new text begin (2) may only be made by qualifying owners who hold more than a 50 percent ownership
interest in a qualifying entity; and
new text end

new text begin (3) is binding on all qualifying owners who have an ownership interest in the qualifying
entity.
new text end

new text begin (c) Subject to the election in paragraph (b), a pass-through entity tax is imposed on a
qualifying entity in an amount equal to the sum of the tax liability of each qualifying owner.
new text end

new text begin (d) The amount of a qualifying owner's tax liability under paragraph (c) is the amount
of the qualifying owner's income multiplied by the tax rates and brackets used to determine
the tax liability for married individuals filing separate returns, estates, and trusts under
section 290.06, subdivision 2c. When making this determination:
new text end

new text begin (1) nonbusiness deductions, standard deductions, or personal exemptions are not allowed;
and
new text end

new text begin (2) a credit or deduction is allowed only to the extent allowed to the qualifying owner.
new text end

new text begin (e) The amount of each credit and deduction used to determine a qualifying owner's tax
liability under paragraph (d) must also be used to determine that qualifying owner's individual
income tax liability under chapter 290.
new text end

new text begin (f) This subdivision does not negate the requirement that a qualifying owner pay estimated
tax if the qualifying owner's tax liability would exceed the requirements set forth in section
289A.25. The qualifying owner's liability to pay estimated tax on the qualifying owner's
tax liability as determined under paragraph (d) is satisfied when the qualifying entity pays
estimated tax in the manner prescribed in section 289A.25 for composite estimated tax.
new text end

new text begin (g) A qualifying owner's adjusted basis in the interest in the qualifying entity, and the
treatment of distributions, is determined as if the election to pay the pass-through entity tax
under paragraph (b) is not made.
new text end

new text begin (h) To the extent not inconsistent with this subdivision, for purposes of this chapter, a
pass-through entity tax return must be treated as a composite return and a qualifying entity
filing a pass-through entity tax return must be treated as a partnership filing a composite
return.
new text end

new text begin (i) The provisions of subdivision 17 apply to the election to pay the pass-through entity
tax under this subdivision.
new text end

new text begin (j) If a nonresident qualifying owner of a qualifying entity making the election to file
and pay the tax under this subdivision has no other Minnesota source income, filing of the
pass-through entity tax return is a return for purposes of subdivision 1, provided that the
nonresident qualifying owner must not have any Minnesota source income other than the
income from the qualifying entity and other electing qualifying entities. If it is determined
that the nonresident qualifying owner has other Minnesota source income, the inclusion of
the income and tax liability for that owner 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
pass-through entity tax return is allowed as a payment of the tax by the individual on the
date on which the pass-through entity tax return payment was made.
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, 2020.
new text end

Sec. 2.

Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision
to read:


new text begin Subd. 31. new text end

new text begin Certain unemployment insurance compensation payments. new text end

new text begin For taxable
years beginning after December 31, 2019, and before January 1, 2021, 18 percent of the
amount of unemployment compensation received by an individual under section 2104 of
the CARES Act, Public Law 116-136, is a subtraction. The subtraction is reduced by $1 for
every $4 of adjusted gross income over:
new text end

new text begin (1) $150,000 for married couples filing a joint return or surviving spouses;
new text end

new text begin (2) $112,500 for head of household filers; and
new text end

new text begin (3) $75,000 for all other filers.
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, 2019, and before January 1, 2021.
new text end

Sec. 3.

Minnesota Statutes 2020, section 290.06, subdivision 22, is amended to read:


Subd. 22.

Credit for taxes paid to another state.

(a) A taxpayer who is liable for taxes
based on net income to another state, as provided in paragraphs (b) through (f), upon income
allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state
if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who
is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who
is subject to income tax as a resident in the state of the individual's domicile is not allowed
this credit unless the state of domicile does not allow a similar credit.

(b) For an individual, estate, or trust, the credit is determined by multiplying the tax
payable under this chapter by the ratio derived by dividing the income subject to tax in the
other state that is also subject to tax in Minnesota while a resident of Minnesota by the
taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue
Code, modified by the addition required by section 290.0131, subdivision 2, and the
subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated
or assigned to Minnesota under sections 290.081 and 290.17.

(c) If the taxpayer is an athletic team that apportions all of its income under section
290.17, subdivision 5, the credit is determined by multiplying the tax payable under this
chapter by the ratio derived from dividing the total net income subject to tax in the other
state by the taxpayer's Minnesota taxable income.

(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of
tax so paid to the other state on the gross income earned within the other state subject to
tax under this chapter; and

(2) the allowance of the credit does not reduce the taxes paid under this chapter to an
amount less than what would be assessed if the gross income earned within the other state
were excluded from taxable net income.

(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the
credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum
distribution that is also subject to tax under section 290.032, and shall not exceed the tax
assessed under section 290.032. To the extent the total lump-sum distribution defined in
section 290.032, subdivision 1, includes lump-sum distributions received in prior years or
is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution
allowed under section 290.032, subdivision 2, includes tax paid to another state that is
properly apportioned to that distribution.

(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax
in such other state on that same income after the Minnesota statute of limitations has expired,
the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any
statute of limitations to the contrary. The claim for the credit must be submitted within one
year from the date the taxes were paid to the other state. The taxpayer must submit sufficient
proof to show entitlement to a credit.

(g) For the purposes of this subdivision, a resident shareholder of a corporation treated
as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed
on the shareholder in an amount equal to the shareholder's pro rata share of any net income
tax paid by the S corporation to another state. For the purposes of the preceding sentence,
the term "net income tax" means any tax imposed on or measured by a corporation's net
income.

(h) For the purposes of this subdivision, a resident partner of an entity taxed as a
partnership under the Internal Revenue Code must be considered to have paid a tax imposed
on the partner in an amount equal to the partner's pro rata share of any net income tax paid
by the partnership to another state. For purposes of the preceding sentence, the term "net
income" tax means any tax imposed on or measured by a partnership's net income.new text begin For
purposes of this paragraph, "partnership" includes a limited liability company and "partner"
includes a member of a limited liability company.
new text end

(i) For the purposes of this subdivision, "another state":

(1) includes:

(i) the District of Columbia; and

(ii) a province or territory of Canada; but

(2) excludes Puerto Rico and the several territories organized by Congress.

(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state
by state basis.

(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this
subdivision is the excess of the tax over the amount of the foreign tax credit allowed under
section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit
allowed, the net income taxes imposed by Canada on the income are deducted first. Any
remaining amount of the allowable foreign tax credit reduces the provincial or territorial
tax that qualifies for the credit under this subdivision.

(l)(1) The credit allowed to a qualifying individual under this section for tax paid to a
qualifying state equals the credit calculated under paragraphs (b) and (d), plus the amount
calculated by multiplying:

(i) the difference between the preliminary credit and the credit calculated under paragraphs
(b) and (d), by

(ii) the ratio derived by dividing the income subject to tax in the qualifying state that
consists of compensation for performance of personal or professional services by the total
amount of income subject to tax in the qualifying state.

(2) If the amount of the credit that a qualifying individual is eligible to receive under
clause (1) for tax paid to a qualifying state exceeds the tax due under this chapter before
the application of the credit calculated under clause (1), the commissioner shall refund the
excess to the qualifying individual. An amount sufficient to pay the refunds required by this
subdivision is appropriated to the commissioner from the general fund.

(3) For purposes of this paragraph, "preliminary credit" means the credit that a qualifying
individual is eligible to receive under paragraphs (b) and (d) for tax paid to a qualifying
state without regard to the limitation in paragraph (d), clause (2); "qualifying individual"
means a Minnesota resident under section 290.01, subdivision 7, paragraph (a), who received
compensation during the taxable year for the performance of personal or professional services
within a qualifying state; and "qualifying state" means a state with which an agreement
under section 290.081 is not in effect for the taxable year but was in effect for a taxable
year beginning before January 1, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2020.
new text end

Sec. 4.

Minnesota Statutes 2020, section 290.06, is amended by adding a subdivision to
read:


new text begin Subd. 40. new text end

new text begin Pass-through entity tax credit. new text end

new text begin (a) A qualifying owner of a qualifying entity
that elects to pay the pass-through entity tax under section 289A.08, subdivision 7a, may
claim a credit against the tax due under this chapter equal to the amount of the owner's tax
liability as calculated under section 289A.08, subdivision 7a, paragraph (d).
new text end

new text begin (b) If the amount of the credit the taxpayer may claim under this subdivision exceeds
the taxpayer's tax liability under this chapter, the commissioner of revenue shall refund the
excess to the taxpayer. The amount necessary to pay the claim for the refund provided in
this subdivision is appropriated from the general fund to the commissioner of revenue.
new text end

new text begin (c) For purposes of this subdivision, "qualifying entity," "qualifying owner," and "tax
liability" have the meanings given in section 289A.08, subdivision 7a, paragraphs (a) and
(d).
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, 2020.
new text end

Sec. 5.

Minnesota Statutes 2020, section 290.92, subdivision 4b, is amended to read:


Subd. 4b.

Withholding by partnerships.

(a) A partnership shall deduct and withhold
a tax as provided in paragraph (b) for nonresident individual partners based on their
distributive shares of partnership income for a taxable year of the partnership.

(b) The amount of tax withheld is determined by multiplying the partner's distributive
share allocable to Minnesota under section 290.17, paid or credited during the taxable year
by the highest rate used to determine the income tax liability for an individual under section
290.06, subdivision 2c, except that the amount of tax withheld may be determined by the
commissioner if the partner submits a withholding exemption certificate under subdivision
5.

(c) The commissioner may reduce or abate the tax withheld under this subdivision if the
partnership had reasonable cause to believe that no tax was due under this section.

(d) Notwithstanding paragraph (a), a partnership is not required to deduct and withhold
tax for a nonresident partner if:

(1) the partner elects to have the tax due paid as part of the partnership's composite return
under section 289A.08, subdivision 7;

(2) the partner has Minnesota assignable federal adjusted gross income from the
partnership of less than $1,000; or

(3) the partnership is liquidated or terminated, the income was generated by a transaction
related to the termination or liquidation, and no cash or other property was distributed in
the current or prior taxable year;

(4) the distributive shares of partnership income are attributable to:

(i) income required to be recognized because of discharge of indebtedness;

(ii) income recognized because of a sale, exchange, or other disposition of real estate,
depreciable property, or property described in section 179 of the Internal Revenue Code;
or

(iii) income recognized on the sale, exchange, or other disposition of any property that
has been the subject of a basis reduction pursuant to section 108, 734, 743, 754, or 1017 of
the Internal Revenue Code

to the extent that the income does not include cash received or receivable or, if there is cash
received or receivable, to the extent that the cash is required to be used to pay indebtedness
by the partnership or a secured debt on partnership property; deleted text beginor
deleted text end

(5) the partnership is a publicly traded partnership, as defined in section 7704(b) of the
Internal Revenue Codedeleted text begin.deleted text endnew text begin; or
new text end

new text begin (6) the partnership has elected to pay the pass-through entity tax under section 289A.08,
subdivision 7a.
new text end

(e) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2,
paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a partnership is considered an
employer.

(f) To the extent that income is exempt from withholding under paragraph (d), clause
(4), the commissioner has a lien in an amount up to the amount that would be required to
be withheld with respect to the income of the partner attributable to the partnership interest,
but for the application of paragraph (d), clause (4). The lien arises under section 270C.63
from the date of assessment of the tax against the partner, and attaches to that partner's share
of the profits and any other money due or to become due to that partner in respect of the
partnership. Notice of the lien may be sent by mail to the partnership, without the necessity
for recording the lien. The notice has the force and effect of a levy under section 270C.67,
and is enforceable against the partnership in the manner provided by that section. Upon
payment in full of the liability subsequent to the notice of lien, the partnership must be
notified that the lien has been satisfied.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2020.
new text end

Sec. 6.

Minnesota Statutes 2020, section 290.92, subdivision 4c, is amended to read:


Subd. 4c.

Withholding by S corporations.

(a) A corporation having a valid election in
effect under section 290.9725 shall deduct and withhold a tax as provided in paragraph (b)
for nonresident individual shareholders their share of the corporation's income for the taxable
year.

(b) The amount of tax withheld is determined by multiplying the amount of income
allocable to Minnesota under section 290.17 by the highest rate used to determine the income
tax liability of an individual under section 290.06, subdivision 2c, except that the amount
of tax withheld may be determined by the commissioner if the shareholder submits a
withholding exemption certificate under subdivision 5.

(c) Notwithstanding paragraph (a), a corporation is not required to deduct and withhold
tax for a nonresident shareholder, if:

(1) the shareholder elects to have the tax due paid as part of the corporation's composite
return under section 289A.08, subdivision 7;

(2) the shareholder has Minnesota assignable federal adjusted gross income from the
corporation of less than $1,000; deleted text beginor
deleted text end

(3) the corporation is liquidated or terminated, the income was generated by a transaction
related to the termination or liquidation, and no cash or other property was distributed in
the current or prior taxable yeardeleted text begin.deleted text endnew text begin; or
new text end

new text begin (4) the S corporation has elected to pay the pass-through entity tax under section 289A.08,
subdivision 7a.
new text end

(d) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2,
paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a corporation is considered an
employer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2020.
new text end

Sec. 7. new text beginCLARIFICATION OF SECTION 179 EXPENSING CONFORMITY.
new text end

new text begin For taxable years beginning after December 31, 2019, no addition is required under
Minnesota Statutes, sections 290.0131, subdivision 10, and 290.0133, subdivision 12, for
property placed in service in taxable years beginning before January 1, 2020, including the
following:
new text end

new text begin (1) the addition for carryover amounts pursuant to section 179(b)(3) of the Internal
Revenue Code for property placed in service in taxable years beginning before January 1,
2020; and
new text end

new text begin (2) the addition for property placed in service in taxable years beginning before January
1, 2020, resulting from being a shareholder or partner in an S-corporation or partnership
with a taxable year that began before January 1, 2020.
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, 2019.
new text end

Sec. 8. new text beginCLARIFICATION OF NET OPERATING LOSS TREATMENT.
new text end

new text begin The reference to the Internal Revenue Code in section 9, subdivision 2, clauses (1) to
(3):
new text end

new text begin (1) applies only to:
new text end

new text begin (i) the exclusion from gross income under section 1106 of Public Law 116-136;
new text end

new text begin (ii) modifications to Paycheck Protection Program loan requirements under Public Laws
116-142, 116-139, and 116-147; and
new text end

new text begin (iii) deductions allowed under section 276 of Public Law 116-260; and
new text end

new text begin (2) does not apply to the modifications to treatment of net operating losses under section
2303 of Public Law 116-136, as modified by section 281 of Public Law 116-260.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
that changes incorporated by federal changes are effective retroactively at the same time
the changes were effective for federal purposes.
new text end

Sec. 9. new text beginEXCLUSION FROM GROSS INCOME FOR CERTAIN FORGIVEN PPP
LOANS AND EDUCATOR EXPENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin This section applies for the purpose of calculating:
new text end

new text begin (1) net income, as defined in Minnesota Statutes, section 290.01, subdivision 19;
new text end

new text begin (2) income, as defined in Minnesota Statutes, section 290.0674, subdivision 2a;
new text end

new text begin (3) alternative minimum taxable income, as defined in Minnesota Statutes, section
290.091, subdivision 2;
new text end

new text begin (4) alternative minimum taxable income, as defined in Minnesota Statutes, section
290.0921, subdivision 3; and
new text end

new text begin (5) income, as defined in Minnesota Statutes, section 290A.03, subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Adopting federal changes related to the paycheck protection program and
certain educator expenses.
new text end

new text begin "Internal Revenue Code" has the meaning given in Minnesota
Statutes, section 290.01, subdivision 31, as amended through the date specified in that
subdivision, but including the following amendments:
new text end

new text begin (1) the exclusion from gross income under section 1106 of Public Law 116-136;
new text end

new text begin (2) section 276 of Public Law 116-260;
new text end

new text begin (3) all modifications to the Internal Revenue Code in Public Laws 116-142 and 116-147;
and
new text end

new text begin (4) for taxable years beginning after December 31, 2019, and before January 1, 2022,
the exclusion from gross income of educator expenses, including personal protective
equipment, disinfectant, and other supplies used for the prevention of the spread of
COVID-19 under section 275 of Public Law 116-260.
new text end

new text begin Subd. 3. new text end

new text begin No denial of deduction. new text end

new text begin Notwithstanding Minnesota Statutes, section 290.10,
the commissioner of revenue must not deny a taxpayer a deduction that is allowed under
section 276 of the COVID-related Tax Relief Act of 2020 in Public Law 116-260.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively at the same time the
provisions of federal law specified in subdivision 2, clauses (1) to (3), were effective for
federal purposes, except that the provision of federal law specified in subdivision 2, clause
(4), is effective for taxable years beginning after December 31, 2019, and before January
1, 2022.
new text end

ARTICLE 2

INCOME AND CORPORATE FRANCHISE TAXES

Section 1.

Minnesota Statutes 2020, section 116J.8737, subdivision 5, is amended to read:


Subd. 5.

Credit allowed.

(a) 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 $10,000,000 in credits to qualified investors or
qualified funds fornew text begin each ofnew text end the taxable years listed in paragraph (i)new text begin, clauses (1) to (3)new text end. For
each taxable year, 50 percent must be allocated to credits for qualified investments in
qualified greater Minnesota businesses and minority-owned, women-owned, or
veteran-owned qualified small businesses in Minnesota. Any portion of a taxable year's
credits that is reserved for qualified investments in greater Minnesota businesses and
minority-owned, women-owned, or veteran-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 beginfor 2010deleted text end must be made available on the department's
website by September 1deleted text begin, 2010deleted text endnew text begin each yearnew text end, and the department must begin accepting
applications by September 1deleted text begin, 2010deleted text endnew text begin each yearnew text end. Applications for subsequent years must be
made available by 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.

(i) The credit allowed under this subdivision is effective for deleted text begineach ofdeleted text end the following taxable
years:

(1) taxable years beginning after December 31, 2018, and before January 1, 2020; deleted text beginand
deleted text end

(2) taxable years beginning after December 31, 2020, and before January 1, 2022new text begin; and
new text end

new text begin (3) taxable years beginning after December 31, 2021, and before January 1, 2023new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2021, and before January 1, 2023.
new text end

Sec. 2.

Minnesota Statutes 2020, 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 2021deleted text endnew text begin 2022new text end, except that reporting requirements under subdivision 6 and revocation of credits
under subdivision 7 remain in effect through deleted text begin2023deleted text endnew text begin 2024new text end for qualified investors and qualified
funds, and through deleted text begin2025deleted text endnew text begin 2026new text end for qualified small businesses, reporting requirements under
subdivision 9 remain in effect through deleted text begin2021deleted text endnew text begin 2022new text end, and the appropriation in subdivision 11
remains in effect through deleted text begin2025deleted text endnew text begin 2026new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2021, and before January 1, 2023.
new text end

Sec. 3.

Minnesota Statutes 2020, section 290.0132, subdivision 4, is amended to read:


Subd. 4.

Education expenses.

(a) Subject to the limits in paragraph (b), the following
amounts paid to others for each qualifying child are a subtraction:

(1) education-related expenses; plus

(2) tuition and fees paid to attend a school described in section 290.0674, subdivision
1
, clause (4), that are not included in education-related expenses; less

(3) any amount used to claim the credit under section 290.0674.

(b) The maximum subtraction allowed under this subdivision is:

(1) deleted text begin$1,625deleted text endnew text begin $1,640new text end for each qualifying child in kindergarten through grade 6; and

(2) deleted text begin$2,500deleted text endnew text begin $2,530new text end for each qualifying child in grades 7 through 12.

(c) The definitions in section 290.0674, subdivision 1, apply to this subdivision.

new text begin (d) The commissioner shall annually adjust the dollar amounts in paragraph (b), clauses
(1) and (2), as provided in section 270C.22. The statutory year is 2021.
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, 2020.
new text end

Sec. 4.

Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision
to read:


new text begin Subd. 30. new text end

new text begin Volunteer driver reimbursement. new text end

new text begin (a) A taxpayer is allowed a subtraction
equal to the amount of mileage reimbursement paid by a charitable organization to the
taxpayer for work as a volunteer driver. The subtraction is limited to amounts paid by the
organization that:
new text end

new text begin (1) are in excess of the mileage rate for use of an automobile in rendering gratuitous
services to a charitable organization under section 170(i) of the Internal Revenue Code; and
new text end

new text begin (2) do not exceed the standard mileage rate for businesses established under Code of
Federal Regulations, title 26, section 1.274-5(j)(2).
new text end

new text begin (b) For the purposes of this section, "charitable organization" means an organization
eligible for a charitable contribution under section 170(c) 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, 2020.
new text end

Sec. 5.

Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision
to read:


new text begin Subd. 31. new text end

new text begin Education savings accounts. new text end

new text begin The amount deposited in an education savings
account in a taxable year for each of the taxpayer's dependents is a subtraction. For purposes
of this subdivision, "education savings account" means an account established in a bill styled
as 2021 House File No. 1065, first unofficial engrossment, article 2, section 36, that creates
an education savings account program for parents to pay for specified educational services.
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, 2020, only upon enactment in the 2021 regular session of a bill styled as House File
No. 1065, first unofficial engrossment, article 2, section 36.
new text end

Sec. 6.

Minnesota Statutes 2020, section 290.0674, subdivision 2, is amended to read:


Subd. 2.

Limitations.

(a) For claimants with income not greater than deleted text begin$33,500deleted text endnew text begin $33,840new text end,
the maximum credit allowed for a family is deleted text begin$1,000deleted text endnew text begin $1,010new text end multiplied by the number of
qualifying children in kindergarten through grade 12 in the family. The maximum credit
for families with one qualifying child in kindergarten through grade 12 is reduced by $1
for each $4 of household income over $33,500, and the maximum credit for families with
two or more qualifying children in kindergarten through grade 12 is reduced by $2 for each
$4 of household income over $33,500, but in no case is the credit less than zero.

(b) In the case of a married claimant, a credit is not allowed unless a joint income tax
return is filed.

(c) For a nonresident or part-year resident, the credit determined under subdivision 1
and the maximum credit amount in paragraph (a) must be allocated using the percentage
calculated in section 290.06, subdivision 2c, paragraph (e).

new text begin (d) The commissioner shall annually adjust the $33,840 income limitation amount and
the $1,010 credit amount in paragraph (a) as provided in section 270C.22. The statutory
year is 2021.
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, 2020.
new text end

Sec. 7.

Minnesota Statutes 2020, 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) new text beginFor applications received before July 1, 2021, new text endupon 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 one-fifth of the total amount of either the credit or the
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 the day following final enactment and
applies to applications received before July 1, 2021.
new text end

Sec. 8.

Minnesota Statutes 2020, section 290.0681, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Certain allocations on pro rata basis. new text end

new text begin (a) This subdivision applies to
applications received after June 30, 2021, and before July 1, 2022.
new text end

new text begin (b) Upon approving an application for credit, the office shall verify eligibility for a credit
or grant and notify the taxpayer of eligibility.
new text end

new text begin (c) By November 1, 2022, the office shall calculate the total amount of credits or grants
for which all taxpayers would be eligible under subdivision 3, paragraph (b), clause (2).
new text end

new text begin (d) The office must not allocate more than $14,000,000 in credits or grants under this
subdivision. If the total amount of credits or grants calculated under paragraph (c) exceeds
$14,000,000, the commissioner of administration shall calculate the credit or grant amount
for each taxpayer on a pro rata basis.
new text end

new text begin (e) The provisions of subdivision 3, paragraphs (a), (b), clauses (3) and (4), and (c) to
(e), apply to credit or grants calculated under this subdivision.
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 applications received after June 30, 2021, and before July 1, 2022.
new text end

Sec. 9.

Minnesota Statutes 2020, 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 projectnew text begin, or for credit
certificates issued under subdivision 3a, the amount stated in the allocation certificate
new text end.

(3) The grant amount equals 90 percent of the federal credit allowed for the projectnew text begin, or
for grants issued under subdivision 3a, the amount stated in the allocation certificate
new text end.

(b) The recipient of a credit certificate may assign the certificate to another taxpayer
before the first one-fifth payment is claimed, 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 the day following final enactment and
applies to applications received after June 30, 2021, and before July 1, 2022.
new text end

Sec. 10.

Minnesota Statutes 2020, section 290.0681, subdivision 10, is amended to read:


Subd. 10.

Sunset.

This section expires after fiscal year deleted text begin2021deleted text endnew text begin 2022new text end, except that the office's
authority to issue credit certificates under subdivision 4 based on allocation certificates that
were issued before fiscal year deleted text begin2022deleted text endnew text begin 2023new text end remains in effect through deleted text begin2024deleted text endnew text begin 2025new text end, and the
reporting requirements in subdivision 9 remain in effect through the year following the year
in which all allocation certificates have either been canceled or resulted in issuance of credit
certificates, or deleted text begin2025deleted text endnew text begin 2026new text end, whichever is earlier.

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 [290.0683] MINNESOTA HOUSING TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Agency" means the Minnesota Housing Finance Agency.
new text end

new text begin (c) "Minnesota housing tax credit contribution fund" or "fund" means the fund established
in section 462A.40.
new text end

new text begin (d) "Qualified project" means a project that qualifies for a grant or loan under section
462A.40.
new text end

new text begin (e) "Taxpayer" means a taxpayer as defined in section 290.01, subdivision 6, or a taxpayer
as defined in section 297I.01, subdivision 16.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A taxpayer is allowed a credit against the tax imposed
under this chapter and the premiums tax under chapter 297I for contributions of no less than
$100 and no more than $2,000,000 to the Minnesota housing tax credit contribution fund.
The credit equals 90 percent of the amount the taxpayer contributed to the fund during the
taxable year.
new text end

new text begin (b) The credit may be claimed only after certification by the agency as provided in
subdivision 3.
new text end

new text begin (c) To receive the credit, a taxpayer must claim the credit in the manner prescribed by
the commissioner and file with the return a copy of the credit certificate issued by the agency
under subdivision 3, paragraph (c).
new text end

new text begin (d) The taxpayer must claim the credit for the taxable year in which the contribution
payment is received by the fund.
new text end

new text begin (e) If the amount of the credit under this section exceeds the taxpayer's liability for tax
under this chapter, the excess is a credit carryover to each of the ten succeeding taxable
years. The entire amount of the excess unused credit for the taxable year must be carried
first to the earliest of the taxable years to which the credit may be carried and then to each
successive year to which the credit may be carried. The amount of the unused credit that
may be added under this paragraph may not exceed the taxpayer's liability for tax, less any
credit for the current taxable year.
new text end

new text begin (f) The contribution amount used to calculate the credit under this section may not be
used to calculate any other state income tax deduction or credit allowed by law.
new text end

new text begin (g) For nonresidents and part-year residents, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 3. new text end

new text begin Allocation. new text end

new text begin (a) To qualify for the credit, a taxpayer must contribute to the
Minnesota housing tax credit contribution fund. A taxpayer may indicate that a contribution
is intended for a specific qualified project. A taxpayer is prohibited from contributing to
certain projects as provided in section 462A.40, subdivision 3.
new text end

new text begin (b) The aggregate amount of tax credits allowed to all eligible contributors is limited to
$10,000,000 annually.
new text end

new text begin (c) Within 30 days after a taxpayer contributes to the fund, the agency must file with
the contributing taxpayer a credit certificate statement or return any amounts to the taxpayer
as provided in this paragraph. The agency must send a copy of the credit certificate to the
commissioner of revenue. If there are insufficient credits to match the contribution, the
agency must not issue a credit certificate for the amount of the contribution for which there
are insufficient credits, and must return that amount to the taxpayer before issuing any credit
certificate.
new text end

new text begin (d) The credit certificate must state the dollar amount of the contribution made by the
taxpayer, the date the payment was received by the fund, and indicate if the contribution
was intended for a specific qualified project.
new text end

new text begin Subd. 4. new text end

new text begin Partnerships; multiple owners. new text end

new text begin Credits granted to a partnership, a limited
liability company taxed as a partnership, S corporation, or multiple owners of property are
passed through to the partners, members, shareholders, or owners, respectively, pro rata to
each partner, member, shareholder, or owner based on their share of the entity's assets or
as specially allocated in their organizational documents or any other executed document,
as of the last day of the taxable year.
new text end

new text begin Subd. 5. new text end

new text begin Recapture. new text end

new text begin (a) Credits claimed under this section are not subject to recapture.
new text end

new text begin (b) If a grant or loan made under section 462A.40 is canceled or recaptured, the grant
or loan is returned to the housing tax credit contribution fund. The agency is not required
to return contributions to taxpayers who indicated that a contribution was intended for a
project for which the loan or grant is recaptured or canceled.
new text end

new text begin Subd. 6. new text end

new text begin Audit powers. new text end

new text begin Notwithstanding the credit certificate issued by the commissioner
of the Minnesota Housing Finance Agency under subdivision 3, the commissioner of revenue
may use any audit and examination powers under chapter 270C or 289A to the extent
necessary to verify that the taxpayer is eligible for the credit and to assess for the amount
of any improperly claimed credit.
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, 2022, and before January 1, 2025.
new text end

Sec. 12.

new text begin [290.0693] CREDIT FOR ETHANOL RETAILERS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms have
the meanings given:
new text end

new text begin (1) "dealer" has the meaning given in section 296A.01, subdivision 13; and
new text end

new text begin (2) "higher ethanol blend" means gasoline blended with ethanol as defined in section
239.761, subdivision 4, that contains at least 15 percent ethanol but no more than 85 percent
ethanol.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin A dealer that is subject to the tax imposed under section 290.03
is allowed a credit against the tax imposed under this chapter equal to five cents per gallon
of higher ethanol blend the dealer sells and dispenses through metered pumps at the dealer's
retail service station in a taxable year. The credit must not exceed a dealer's tax liability
under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Pass-through entities. new text end

new text begin Credits granted to a partnership, a limited liability
company taxed as a partnership, or an S corporation are passed through to the partners,
members, shareholders, or owners, respectively, pro rata to each partner, member,
shareholder, or owner based on their share of the entity's assets or as specially allocated in
their organizational documents or any other executed agreement as of the last day of the
taxable year.
new text end

new text begin Subd. 4. new text end

new text begin Sunset. new text end

new text begin This section expires for taxable years beginning after December 31,
2030.
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, 2020.
new text end

Sec. 13.

new text begin [462A.40] MINNESOTA HOUSING TAX CREDIT CONTRIBUTION
FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Fund created. new text end

new text begin The Minnesota housing tax credit contribution fund is
created as a revolving fund in the state treasury. The fund is administered by the
commissioner of the Minnesota Housing Finance Agency. Amounts contributed to the fund
are appropriated to the commissioner. The commissioner may use the amounts appropriated
to direct disbursements from the fund as loans or grants to eligible recipients as provided
in this section.
new text end

new text begin Subd. 2. new text end

new text begin Use of funds; grant and loan program. new text end

new text begin (a) The commissioner may award
grants and loans to be used for multifamily and single family developments for persons and
families of low and moderate income. Allowable use of the funds include: gap financing,
as defined in section 462A.33, subdivision 1; new construction; acquisition; rehabilitation;
demolition or removal of existing structures; construction financing; permanent financing;
interest rate reduction; and refinancing.
new text end

new text begin (b) The commissioner may give preference for grants and loans to comparable proposals
that include regulatory changes or waivers that result in identifiable cost avoidance or cost
reductions, including but not limited to increased density, flexibility in site development
standards, or zoning code requirements.
new text end

new text begin (c) Separate from the amounts set aside in paragraph (d), the commissioner shall set
aside ten percent of grants and loans for housing units located in a township or city with a
population of 2,500 or less that is located outside the metropolitan area, as defined in section
473.121, subdivision 2.
new text end

new text begin (d) The commissioner shall separately set aside:
new text end

new text begin (1) 35 percent of the financing under this section for housing for persons and families
whose income is 50 percent or less of the area median income for the applicable county or
metropolitan area as published by the Department of Housing and Urban Development, as
adjusted for household size; and
new text end

new text begin (2) 15 percent of the financing under this section for housing for persons and families
whose income is 30 percent or less of the area median income for the applicable county or
metropolitan area as published by the Department of Housing and Urban Development, as
adjusted for household size.
new text end

new text begin (e) If by June 1 of each year, the commissioner does not receive requests to use all of
the amounts set aside under paragraphs (c) and (d), the commissioner may use any remaining
financing for other projects eligible under this section.
new text end

new text begin Subd. 3. new text end

new text begin Eligible recipients; definitions; restrictions; use of funds. new text end

new text begin (a) The
commissioner may award a loan to any recipient that qualifies under subdivision 2. The
commissioner must not award a grant to a disqualified individual or disqualified business.
new text end

new text begin (b) For the purposes of this subdivision disqualified individual means an individual who:
new text end

new text begin (1) made a contribution to the fund in the current or prior taxable year and received a
credit certificate;
new text end

new text begin (2) owns the housing for which the grant or loan will be used and is using that housing
as their domicile;
new text end

new text begin (3) meets the following criteria:
new text end

new text begin (i) the individual is an officer or principal of a business entity; and
new text end

new text begin (ii) that business entity made a contribution to the fund in the current or previous taxable
year and received a credit certificate; or
new text end

new text begin (4) meets the following criteria:
new text end

new text begin (i) the individual owns, controls, or holds the power to vote 20 percent or more of the
outstanding securities of a business entity; and
new text end

new text begin (ii) that business entity made a contribution to the fund in the current or previous taxable
year and received a credit certificate.
new text end

new text begin (c) For the purposes of this subdivision disqualified business means a business entity
that:
new text end

new text begin (1) made a contribution to the fund in the current or prior taxable year and received a
credit certificate;
new text end

new text begin (2) has an officer or principal who is an individual who made a contribution to the fund
in the current or previous taxable year and received a credit certificate; or
new text end

new text begin (3) meets the following criteria:
new text end

new text begin (i) the business entity is owned, controlled, or is subject to the power to vote 20 percent
or more of the outstanding securities by an individual or business entity; and
new text end

new text begin (ii) that controlling individual or business entity made a contribution to the fund in the
current or previous taxable year and received a credit certificate.
new text end

new text begin (d) The disqualifications in paragraphs (b) and (c) apply if the taxpayer would be
disqualified either individually or in combination with one or more members of the taxpayer's
family, as defined in the Internal Revenue Code, section 267(c)(4). For a married couple
filing a joint return, the limitations in this paragraph apply collectively to the taxpayer and
spouse. For purposes of determining the ownership interest of a taxpayer under paragraph
(a), clause (4), the rules under section 267(c) and 267(e) of the Internal Revenue Code apply.
new text end

new text begin (e) Before applying for a grant or loan, all recipients must sign a disclosure that the
disqualifications under this subdivision do not apply. The commissioner of the Minnesota
Housing Finance Agency must prescribe the form of the disclosure.
new text end

new text begin (f) The commissioner may award grants or loans to a city as defined in section 462A.03,
subdivision 21; a federally recognized American Indian tribe or subdivision located in
Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a
housing and redevelopment authority under sections 469.001 to 469.047; a public housing
authority or agency authorized by law to exercise any of the powers granted by sections
469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and
paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible
recipients apply to grants and loans awarded under this paragraph.
new text end

new text begin (g) Except for the set-aside provided in subdivision 2, paragraph (d), eligible recipients
must use the funds to serve households that meet the income limits as provided in section
462A.33, subdivision 5.
new text end

new text begin Subd. 4. new text end

new text begin Recapture. new text end

new text begin A loan or grant awarded under this section is subject to repayment
or recapture under rules adopted by the commissioner. Any amount of a loan or grant that
is repaid or recaptured must be redeposited in the fund and is not returned to the taxpayer
who made the contribution.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin The commissioner shall report by January 15 each year to the chairs
and ranking minority members of the legislative policy and finance committees with
jurisdiction over housing on the tax credits and financing provided in the previous fiscal
year. The report shall provide a breakdown of the tax credits, grants, and loans by region
of the state. The report shall also include information on planned financing in the current
fiscal 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, 2022, and before January 1, 2025.
new text end

Sec. 14. new text beginTEMPORARY TAX CREDIT FOR CERTAIN BREWERS, LIQUOR
RETAILERS, AND WHOLESALERS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Closure or limited capacity" means:
new text end

new text begin (1) closed to ingress, egress, use, and occupancy by members of the public by Executive
Order 20-04, as extended, amended, and otherwise modified by any related executive order;
or
new text end

new text begin (2) subject to the requirements and limitations, including operating at reduced capacity,
of Executive Order 20-74, as extended, amended, and otherwise modified by any related
executive order.
new text end

new text begin (c) "Liquor spoilage" means:
new text end

new text begin (1) for a qualified brewer, the dollar amount of product purchased back from a liquor
wholesaler or liquor retailer, and the dollar amount of any product disposed of as unsalable,
due to closure or limited capacity;
new text end

new text begin (2) for a qualified retailer, the dollar amount of product returned without reimbursement
to a liquor wholesaler or manufacturer, and the dollar amount of any product disposed of
as unsalable, due to closure or limited capacity; and
new text end

new text begin (3) for a qualified wholesaler, the dollar amount of product purchased back from liquor
retailer, the dollar amount of product returned without reimbursement to a manufacturer,
and the dollar amount of any product disposed of as unsalable, due to closure or limited
capacity.
new text end

new text begin (d) "Qualified brewer" means a brewer licensed under Minnesota Statutes, section
340A.301, subdivision 6, clauses (c), (d), (i), and (j).
new text end

new text begin (e) "Qualified retailer" means any on-sale liquor licensee under Minnesota Statutes,
chapter 340A, that was subject to closure or limited capacity.
new text end

new text begin (f) "Qualified wholesaler" means a wholesaler as defined in Minnesota Statutes, section
340A.101, subdivision 28.
new text end

new text begin (g) Except as otherwise provided in this subdivision, the definitions in Minnesota Statutes,
chapter 340A, apply to this section.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A qualified brewer, qualified retailer, and qualified
wholesaler are allowed a credit, equal to the amount of liquor spoilage in the taxable year,
against the tax imposed under Minnesota Statutes, chapter 290. The credit must be claimed
in a manner prescribed by the commissioner of revenue.
new text end

new text begin (b) The amounts used to calculate the credit under this section may not be used to
calculate any other credit or subtraction under Minnesota Statutes, chapter 290.
new text end

new text begin Subd. 3. new text end

new text begin Partnerships; multiple owners. new text end

new text begin Credits granted to a partnership, a limited
liability company taxed as a partnership, an S corporation, or multiple owners of property
are passed through to the partners, members, shareholders, or owners, respectively, pro rata
to each partner, member, shareholder, or owner based on their share of the entity's assets
or as specially allocated in their organizational documents or any other executed agreement,
as of the last day of the taxable year.
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable; appropriation; administration. new text end

new text begin (a) If a taxpayer's total
credit under this section exceeds the taxpayer's liability for tax under Minnesota Statutes,
chapter 290, the commissioner must refund the excess to the taxpayer. The amount necessary
to pay the refunds under this section is appropriated to the commissioner of revenue from
the general fund.
new text end

new text begin (b) The administrative provisions of Minnesota Statutes, chapters 270C, 289A, and 290,
apply to the credit under this section.
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, 2019, and before January 1, 2022.
new text end

ARTICLE 3

SALES AND USE; EXCISE TAXES

Section 1.

Minnesota Statutes 2020, 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 endnew text begin $2,377,399,000new 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;

(4) the amount necessary to restore all or a portion of the net aid reductions under section
127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
subdivision 5
, by the same amount;

deleted text begin (5) the clean water fund established in section 114D.50 until $22,000,000 has been
transferred into the fund; and
deleted text end

deleted text begin (6)deleted text endnew text begin (5)new text end the amount necessary to increase the Minnesota 21st century fund by not more
than the difference between $5,000,000 and the sum of the amounts credited and canceled
to it in the previous 12 months under Laws 2020, chapter 71, article 1, section 11, until the
sum of all transfers under this section and all amounts credited or canceled under Laws
2020, chapter 71, article 1, section 11, equals $20,000,000deleted text begin.deleted text endnew text begin; and
new text end

new text begin (6) for a forecast in November only, the amount remaining after the transfer under clause
(5) must be used to reduce the percentage of accelerated June liability sales tax payments
required under section 289A.20, subdivision 4, paragraph (b), until the percentage equals
zero, rounded to the nearest tenth of a percent. By March 1 each year, the commissioner of
revenue must certify the percentage of June liability owed by qualifying vendors based on
the reduction required by this clause.
new 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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 2.

Minnesota Statutes 2020, section 289A.20, subdivision 4, is amended to read:


Subd. 4.

Sales and use tax.

(a) The taxes imposed by chapter 297A are due and payable
to the commissioner monthly on or before the 20th day of the month following the month
in which the taxable event occurred, or following another reporting period as the
commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f)
or (g), except that use taxes due on an annual use tax return as provided under section
289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.

(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30
must remit the June liability for the next year in the following manner:

(1) Two business days before June 30 of calendar year 2020 and 2021, the vendor must
remit 87.5 percent of the estimated June liability to the commissioner. Two business days
before June 30 of calendar year 2022 and thereafter, the vendor must remit 84.5 percentnew text begin, or
a reduced percentage as certified by the commissioner under section 16A.152, subdivision
2, paragraph (a), clause (6),
new text end of the estimated June liability to the commissioner.

(2) On or before August 20 of the year, the vendor must pay any additional amount of
tax not remitted in June.

(c) A vendor having a liability of:

(1) $10,000 or more, but less than $250,000new text begin,new text end during a fiscal year deleted text beginending June 30, 2013,
and fiscal years thereafter,
deleted text end must remit by electronic means all liabilities on returns due for
periods beginning in all subsequent calendar years on or before the 20th day of the month
following the month in which the taxable event occurred, or on or before the 20th day of
the month following the month in which the sale is reported under section 289A.18,
subdivision 4
; or

(2) $250,000 or moredeleted text begin,deleted text end during a fiscal year deleted text beginending June 30, 2013, and fiscal years
thereafter,
deleted text end must remit by electronic means all liabilities in the manner provided in paragraph
(a) on returns due for periods beginning in the subsequent calendar year, except for 90
percent of the estimated June liability, which is due two business days before June 30. The
remaining amount of the June liability is due on August 20.

(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious
beliefs from paying electronically shall be allowed to remit the payment by mail. The filer
must notify the commissioner of revenue of the intent to pay by mail before doing so on a
form prescribed by the commissioner. No extra fee may be charged to a person making
payment by mail under this paragraph. The payment must be postmarked at least two business
days before the due date for making the payment in order to be considered paid on a timely
basis.

new text begin (e) Paragraph (b) expires after the percentage of estimated payment is reduced to zero
in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 3.

Minnesota Statutes 2020, section 297A.70, subdivision 13, is amended to read:


Subd. 13.

Fund-raising sales by or for nonprofit groups.

(a) The following sales by
the specified organizations for fund-raising purposes are exempt, subject to the limitations
listed in paragraph (b):

(1) all sales made by a nonprofit organization that exists solely for the purpose of
providing educational or social activities for young people primarily age 18 and under;

(2) all sales made by an organization that is a senior citizen group or association of
groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized
and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) no
part of its net earnings inures to the benefit of any private shareholders;

(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if the
beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization under
section 501(c)(3) of the Internal Revenue Code; and

(4) sales of candy sold for fund-raising purposes by a nonprofit organization that provides
educational and social activities primarily for young people age 18 and under.

(b) The exemptions listed in paragraph (a) are limited in the following manner:

(1) the exemption under paragraph (a), clauses (1) and (2), applies only to the first
$20,000 of the gross annual receipts of the organization from fund-raising; deleted text beginand
deleted text end

(2) the exemption under paragraph (a), clause (1), does not apply if the sales are derived
from admission charges or from activities for which the money must be deposited with the
school district treasurer under section 123B.49, subdivision 2deleted text begin, ordeleted text endnew text begin; and
new text end

new text begin (3) the exemption under paragraph (a), clause (1), does not apply if the sales are derived
from admission charges or from activities for which the money must
new text end be recorded in the
same manner as other revenues or expenditures of the school district under section 123B.49,
subdivision 4
deleted text begin.deleted text endnew text begin, unless the following conditions are both met:
new text end

new text begin (i) the sales are made for fund-raising purposes of a club, association, or other
organization of elementary or secondary school students organized for the purpose of
carrying on sports activities, educational activities, or other extracurricular activities; and
new text end

new text begin (ii) the school district reserves revenue raised for extracurricular activities, as provided
in section 123B.49, subdivision 4, paragraph (e), and spends the revenue raised by a particular
extracurricular activity only for that extracurricular activity.
new text end

(c) Sales of tangible personal property and services are exempt if the entire proceeds,
less the necessary expenses for obtaining the property or services, will be contributed to a
registered combined charitable organization described in section 43A.50, to be used
exclusively for charitable, religious, or educational purposes, and the registered combined
charitable organization has given its written permission for the sale. Sales that occur over
a period of more than 24 days per year are not exempt under this paragraph.

(d) For purposes of this subdivision, a club, association, or other organization of
elementary or secondary school students organized for the purpose of carrying on sports,
educational, or other extracurricular activities is a separate organization from the school
district or school for purposes of applying the $20,000 limit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after the
date of final enactment.
new text end

Sec. 4.

Minnesota Statutes 2020, section 297A.71, is amended by adding a subdivision to
read:


new text begin Subd. 53. new text end

new text begin Public safety facilities. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, remodeling, expansion, or improvement of
a fire station or police station, including related facilities, owned and operated by a local
government, as defined in section 297A.70, subdivision 2, paragraph (d), are exempt.
new text end

new text begin (b) For purposes of this subdivision, "related facilities" includes access roads, lighting,
sidewalks, and utility components on or adjacent to the property on which the fire station
or police station is located that are necessary for safe access to and use of those buildings.
new text end

new text begin (c) 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 end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2021.
new text end

Sec. 5.

Minnesota Statutes 2020, 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 veterans with a disability 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
a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 45;

(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, subdivisions 49; 50, paragraph (b); and 51; deleted text beginand
deleted text end

(17) building materials, equipment, and supplies for qualifying capital projects under
section 297A.71, subdivision 52deleted text begin.deleted text endnew text begin; and
new text end

new text begin (18) building materials, equipment, and supplies for constructing, remodeling, expanding,
or improving a fire station, police station, or related facilities exempt under section 297A.71,
subdivision 53.
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, 2021.
new text end

Sec. 6.

Minnesota Statutes 2020, section 297A.75, subdivision 2, is amended to read:


Subd. 2.

Refund; eligible persons.

Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
be paid to the applicant. Only the following persons may apply for the refund:

(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;

(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;

(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
property;

(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;

(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying
business;

(8) for subdivision 1, clauses (9), (10), (13), deleted text beginanddeleted text end (17), new text beginand (18), new text endthe applicant must be
the governmental entity that owns or contracts for the project or facility; and

(9) for subdivision 1, clause (16), the applicant must be the owner or developer of the
building or project.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2021.
new text end

Sec. 7.

Minnesota Statutes 2020, section 297A.75, subdivision 3, is amended to read:


Subd. 3.

Application.

(a) The application must include sufficient information to permit
the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clauses (3) to (13) or (15) to deleted text begin(17)deleted text endnew text begin (18)new text end, the contractor,
subcontractor, or builder must furnish to the refund applicant a statement including the cost
of the exempt items and the taxes paid on the items unless otherwise specifically provided
by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
this section.

(b) An applicant may not file more than two applications per calendar year for refunds
for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2021.
new text end

Sec. 8.

Minnesota Statutes 2020, section 297A.77, subdivision 3, is amended to read:


Subd. 3.

Tax must be remitted.

The tax collected by a retailer under this sectionnew text begin, except
for the amount allowed to be retained by the seller under section 297A.816,
new text end must be remitted
to the commissioner as provided in chapter 289A and this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales taxes remitted after June 30,
2022.
new text end

Sec. 9.

new text begin [297A.816] VENDOR ALLOWANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin A retailer may retain a portion of sales tax collected as a
vendor allowance in compensation for the costs of collecting and administering the tax
under this chapter. This section applies only if the tax minus the vendor allowance is both
reported and remitted to the commissioner in a timely fashion as required under chapter
289A.
new text end

new text begin Subd. 2. new text end

new text begin Tax not eligible for allowance. new text end

new text begin Use taxes paid by the retailer on the retailer's
own purchases and local sales and use taxes collected by the retailer are not included in
calculating the vendor allowance under this section.
new text end

new text begin Subd. 3. new text end

new text begin Calculation of allowance; maximum amounts. new text end

new text begin (a) The amount of the vendor
allowance is equal to the sum of 0.15 percent of the tax collected in the reporting period,
up to $250. The vendor allowance must not reduce the tax owed in the reporting period to
less than zero.
new text end

new text begin (b) Notwithstanding section 297A.62, subdivision 4, the amount retained under this
section must be calculated only on collections of the tax imposed under section 297A.62,
subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales taxes remitted after June 30,
2022.
new text end

Sec. 10.

Minnesota Statutes 2020, section 297F.10, subdivision 1, is amended to read:


Subdivision 1.

Tax and use tax on cigarettes.

Revenue received from cigarette taxes,
as well as related penalties, interest, license fees, and miscellaneous sources of revenue
shall be deposited by the commissioner in the state treasury and credited as follows:

(1) $22,250,000 each year must be credited to the Academic Health Center special
revenue fund hereby created and is annually appropriated to the Board of Regents at the
University of Minnesota for Academic Health Center funding at the University of Minnesota;
and

(2) $3,937,000 each year must be credited to the medical education and research costs
account hereby created in the special revenue fund and is annually appropriated to the
commissioner of health for distribution under section 62J.692, subdivision 4; and

new text begin (3) $5,000,000 in fiscal year 2022 only must be credited to the tobacco use prevention
and cessation account hereby created in the special revenue fund and is appropriated to the
commissioner of health for tobacco use prevention and cessation projects consistent with
the duties specified in section 144.392; a public information program under section 144.393;
the development of health promotion and health education materials about tobacco use
prevention and cessation; tobacco use prevention activities under section 144.396; and
statewide tobacco cessation services under section 144.397. In activities funded under this
clause, the commissioner of health must prioritize preventing youth use of commercial
tobacco and electronic delivery devices, must promote racial and health equity, and must
use strategies that are evidence-based or based on promising practices. For purposes of this
clause, "tobacco" and "electronic delivery device" have the meanings given in section
609.685, subdivision 1. Any unexpended or unencumbered amount from fiscal year 2022
may be carried into fiscal year 2023; and
new text end

deleted text begin (3)deleted text endnew text begin (4)new text end the balance of the revenues derived from taxes, penalties, and interest (under this
chapter) and from license fees and miscellaneous sources of revenue shall be credited to
the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue received after June 30, 2021.
new text end

Sec. 11.

Minnesota Statutes 2020, section 297I.20, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Minnesota housing tax credit. new text end

new text begin A taxpayer may claim a credit against the
premiums tax imposed under this chapter equal to the amount indicated on the credit
certificate statement issued to the taxpayer under section 290.0683. If the amount of the
credit exceeds the liability for tax under this chapter, the excess is a credit carryover to each
of the ten succeeding taxable years. The entire amount of the excess unused credit for the
taxable year must be carried first to the earliest of the taxable years to which the credit may
be carried and then to each successive year to which the credit may be carried. This credit
does not affect the calculation of fire state aid under section 477B.03 and police state aid
under section 477C.03.
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, 2022, and before January 1, 2025.
new text end

Sec. 12.

Minnesota Statutes 2020, section 477A.016, is amended to read:


477A.016 NEW TAXES PROHIBITED.

new text begin (a) new text endNo 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 or instrument 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 or instrument" means a bottle, cup, can, bag, or other packaging that is
made from plastic, aluminum, glass, paper, 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. 13. new text beginSALES TAX EXEMPTION FOR CERTAIN PURCHASES RELATED TO
COVID-19.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 289A.50, or any law to the contrary,
the sale and purchase of any materials, supplies, or equipment used in this state by a restaurant
to adapt to health guidelines or any executive order related to COVID-19 is exempt from
sales and use taxes imposed under Minnesota Statutes, chapter 297A. For the purposes of
this section, "restaurant" means an establishment used as, maintained as, advertised as, or
held out to be an operation that prepares, serves, or otherwise provides food or beverages,
or both, for human consumption, which operates from a location for more than 21 days
annually. Restaurant does not include food carts, mobile food units, grocery stores,
convenience stores, gas stations, bakeries, or delis.
new text end

new text begin (b) The maximum refund allowed under this section is $1,000 per federal employer
identification number or Minnesota tax identification number, whichever number is used
to file sales tax returns. A business using a consolidated return to report sales tax information
from more than one restaurant location, as provided in Minnesota Statutes, section 289A.11,
subdivision 1, paragraph (a), is eligible for a refund of up to $1,000, per restaurant location
reported.
new text end

new text begin (c) The tax on the gross receipts from the sale of the items exempt under paragraph (a)
must be imposed and collected as if the sale were taxable and the rate under Minnesota
Statutes, section 297A.62, subdivision 1, applied. Refunds for eligible purchases must not
be issued until after June 30, 2021.
new text end

new text begin (d) Upon application on forms prescribed by the commissioner, a refund equal to the
tax paid on the gross receipts of the exempt items or $1,000, whichever is less, must be paid
to the applicant. Only the owner of the restaurant may apply for the refund. The application
must include sufficient information to permit the commissioner to verify the tax paid and
that the applicant is the owner of the restaurant.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective retroactively from
March 1, 2020, and applies to sales and purchases made after February 29, 2020, and before
January 1, 2022.
new text end

ARTICLE 4

PROPERTY TAXES AND AIDS AND CREDITS

Section 1.

Minnesota Statutes 2020, section 144F.01, is amended to read:


144F.01 new text beginFIRE PROTECTION AND new text endEMERGENCY MEDICAL SERVICES
SPECIAL TAXING DISTRICTS.

Subdivision 1.

deleted text beginPolitical subdivision defineddeleted text endnew text begin Definitionsnew text end.

new text begin For purposes of this section,
the following terms have the meanings given.
new text end

deleted text begin In this section,deleted text endnew text begin (a)new text end "Political subdivision" means a county, a statutory or home rule charter
city, or a township organized to provide town government.

new text begin (b) "Governing body" means a city council for a city, a county board for a county, and
a board of supervisors for a town.
new text end

new text begin (c) "Emergency medical services" means supporting the providing of out-of-hospital
emergency medical services including, but not limited to, first responder or rescue squads
recognized by the district, ambulance services licensed under chapter 144E and recognized
by the district, medical control functions set out in chapter 144E, communications equipment
and systems, and programs of regional emergency medical services authorized by regional
boards described in section 144E.52.
new text end

Subd. 2.

deleted text beginWho maydeleted text end new text beginAuthority to new text endestablish.

new text begin(a) new text endTwo or more political subdivisionsdeleted text begin, or
parts of them,
deleted text end may establishnew text begin,new text end by resolution of their governing bodiesnew text begin,new text end a special taxing district
deleted text begin fordeleted text endnew text begin to provide fire protection ornew text end emergency medical servicesdeleted text begin. The participating territory of
a participating political subdivision need not abut any other participating territory to be in
the special taxing district
deleted text endnew text begin, or both, in the area of the district, comprising the jurisdiction of
each of the political subdivisions forming the district. For a county that participates in
establishing a district, the county's jurisdiction comprises the unorganized territory of the
county that it designated in its resolution for inclusion in the district. The area of the special
taxing district need not be contiguous or its boundaries continuous
new text end.

new text begin (b) Before establishing a district under this section, the participating political subdivisions
must enter into an agreement that specifies how any liabilities, other than debt issued under
subdivision 6, and assets of the district will be distributed if the district is dissolved. The
agreement may also include other terms, including a method for apportioning the levy of
the district among participating political subdivisions under subdivision 4, paragraph (b),
as the political subdivisions determine appropriate. The agreement must be adopted no later
than upon passage of the resolution establishing the district under paragraph (a), but may
be later amended by agreement of each of the political subdivisions participating in the
district.
new text end

new text begin (c) If two or more political subdivisions that currently operate separate fire departments
seek to merge fire departments into one fire department, or if a political subdivision with
an existing fire department requests to join a special taxing district with an established fire
department, the resolution under paragraph (a) or agreement under paragraph (b) must
specify which, if any, volunteer firefighter pension plan is associated with the district. A
special taxing district that operates a fire department under this section may be associated
with only one volunteer firefighting relief association or one account in the voluntary
statewide volunteer firefighting retirement plan at one time.
new text end

new text begin (d) If the special taxing district includes the operation of a fire department, it must file
its resolution establishing the fire protection special taxing district, and any agreements
required for the establishment of the special taxing district, with the commissioner of revenue,
including any subsequent amendments. If the resolution or agreement does not include
sufficient information defining the fire department service area of the fire protection special
taxing district, the secretary of the district board must file a written statement with the
commissioner defining the fire department service area.
new text end

Subd. 3.

Board.

The special taxing district new text beginestablished new text endunder this section is governed
by a board made up initially of representatives of each participating political subdivision
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. deleted text beginIf a township states in its resolution that
less than the entire township will participate in the district, the partial townships shall be
represented on the board by only one member, appointed from among those townships so
participating. The method for appointment shall be governed by the bylaws of the district's
joint powers agreement. Each participant's representative serves at the pleasure of that
participant's governing body or bodies
deleted text endnew text begin Each participating political subdivision's representative
must be an elected member of the governing body of the political subdivision and shall
serve at the pleasure of that participant's governing body
new text end.

Subd. 4.

Property tax levy authority.

new text begin(a) new text endThe district's board may levy a tax on the
taxable real and personal property in the district. deleted text beginThe ad valorem tax levy may not exceed
0.048 percent of the estimated market value of the district or $550,000, whichever is less.
deleted text end
The proceeds of the levy must be used as provided in subdivision 5. The board shall certify
the levy at the times as provided under section 275.07. The board shall provide the county
with whatever information is necessary to identify the property that is located within the
district. If the boundaries include a part of a parcel, the entire parcel shall be included in
the district. The county auditors must spread, collect, and distribute the proceeds of the tax
at the same time and in the same manner as provided by law for all other property taxes.

new text begin (b) As an alternative to paragraph (a), the board may apportion its levy among the political
subdivisions that are members of the district under a formula or method, with factors such
as population, number of service calls, costs of providing service, the market value of
improvements, or other measures approved by the governing body of each of the participating
political subdivisions. The amount of the levy allocated to each political subdivision must
be added to that political subdivision's levy and spread at the same time and in the same
manner as provided by law for all other property taxes. The proceeds of the levy must be
collected and remitted to the district and used as provided in subdivision 5.
new text end

Subd. 5.

Use of levy proceeds.

The proceeds of property taxes levied under this section
must be used to deleted text beginsupport the providing of out-of-hospital emergency medical services
including, but not limited to, first responder or rescue squads recognized by the district,
ambulance services licensed under chapter 144E and recognized by the district, medical
control functions set out in chapter 144E, communications equipment and systems, and
programs of regional emergency medical services authorized by regional boards described
in section 144E.52
deleted text endnew text begin provide fire protection, emergency medical services, or both, to residents
of the district and property located in the district, as well as to pay debt issued under
subdivision 6. Services may be provided by employees of the district or by contracting for
services provided by other governmental or private entities
new text end.

Subd. 6.

deleted text beginAdvisory committeedeleted text endnew text begin Debtnew text end.

deleted text beginA special taxing district board under this section
must have an advisory committee to advise the board on issues involving emergency medical
services and EMS communications. The committee's membership must be comprised of
representatives of first responders, ambulance services, ambulance medical directors, and
EMS communication experts. The advisory committee members serve at the pleasure of
the appointing board
deleted text endnew text begin (a) The district may incur debt under chapter 475 when the board
determines doing so is necessary to accomplish its duties
new text end.

new text begin (b) In addition, the district board may issue certificates of indebtedness or capital notes
under section 412.301 to purchase capital equipment. In applying section 412.301, paragraph
(e), the following rules apply:
new text end

new text begin (1) the taxable property of the entire district must be used to calculate the percent of
estimated market value; and
new text end

new text begin (2) "the number of voters at the last municipal election" means the sum of the number
of voters at the last municipal election for each of the cities that is a member of the district
plus the number of registered voters in each town that is a participating member of the
district.
new text end

Subd. 7.

Powers.

(a) In addition to authority expressly granted in this section, a special
taxing district new text beginestablished new text endunder this section may exercise any power that may be exercised
by any of its participating political subdivisionsdeleted text begin, except that the board may not incur debt.
The special taxing district may only use the power to do what
deleted text endnew text begin thatnew text end is necessary or reasonable
to support the services set out in subdivision 5new text begin. These powers include the authority to
participate in state programs and to enforce or carry out state laws related to fire protection
or emergency medical services, including programs providing state aid, reimbursement or
funding of employee benefits, and authorizing local enforcement of state standards including
fire protection related programs and political subdivision powers or responsibilities under
chapters 299A, 424A, and 477B; sections 6.495, 353.64, and 423A.022; and any other
administrative rules related to the fire code, to the extent the special taxing district meets
the qualification criteria and requirements of a program
new text end.

(b) deleted text beginNotwithstanding paragraph (a),deleted text endnew text begin To the extent the district's authority under this
subdivision overlaps with or may conflict with the authority of the participating political
subdivision, the agreement under subdivision 2, paragraph (b), must provide for allocation
of those powers or responsibilities between the participating political subdivisions and the
district, and may provide for resolution of conflicts in the exercise of those powers.
new text end

new text begin (c)new text end The district may only levy the deleted text begintaxesdeleted text end new text begintax new text endauthorized in deleted text beginthis sectiondeleted text endnew text begin subdivision 4new text end.

Subd. 8.

Additions and withdrawals.

(a) Additional deleted text begineligibledeleted text end political subdivisions may
be added to a special taxing district new text beginestablished new text endunder this section as provided by the board
of the district and agreed to in a resolution of the governing body of the political subdivision
proposed to be addednew text begin. The addition of a political subdivision to the district may not cause
the district to be out of compliance with subdivision 2, paragraph (c)
new text end.

(b) A political subdivision may withdraw from a special taxing district under this section
by resolution of its governing body. The political subdivision must notify the board of the
special taxing district of the withdrawal by providing a copy of the resolution at least deleted text beginone
year
deleted text end new text begintwo years new text endin advance of the proposed withdrawal. The taxable property of the
withdrawing member is subject to the property tax levy under subdivision 4 for the new text begintwo
new text end taxes payable deleted text beginyeardeleted text end new text beginyears new text endfollowing the notice of the withdrawal, unless the board and the
withdrawing member agree otherwise by action of their governing bodiesnew text begin. If a political
subdivision withdraws from a district for which debt was issued under subdivision 6 when
the political subdivision was a participating member, and which is outstanding when the
political subdivision withdraws from the district, the taxable property of the withdrawing
political subdivision remains subject to the special taxing district levy until the outstanding
debt has been paid or defeased. If the district's property tax levy to repay debt was
apportioned among the political subdivisions under an alternative formula or method under
subdivision 4, paragraph (b), the withdrawing political subdivision is subject to the same
percentage of the debt levy as applied in the taxes payable year immediately preceding its
withdrawal from the district
new text end.

(c) Notwithstanding subdivision 2, if the district is comprised of deleted text beginonlydeleted text end two political
subdivisions and one of the political subdivisions withdraws, the district can continue to
exist.

Subd. 9.

Dissolution.

new text beginThe special taxing district may be dissolved by resolution approved
by a majority vote of the board.
new text endIf the special taxing district is dissolved, the assets and
liabilities may be assigned to a successor entity, if any, or otherwise disposed of for public
purposes as provided deleted text beginby lawdeleted text endnew text begin in the agreement adopted under subdivision 2, paragraph (b),
or otherwise agreed to by each participating political subdivision. A district may not be
dissolved until all debt issued under subdivision 6 has been paid or defeased
new text end.

Subd. 10.

Reports.

new text begin(a)new text end On or before March 15, deleted text begin2005deleted text endnew text begin 2024new text end, and March 15, deleted text begin2007deleted text endnew text begin 2026new text end,
the special taxing district shall submit a levy and expenditure report to the commissioner
of revenue and to the deleted text beginchairs of thedeleted text end house of representatives and senate committees with
jurisdiction over taxes new text beginand property taxesnew text end. Each report must include the amount of the
district's levies for taxes payable for each of the two previous years and its actual expenditures
of those revenues. Expenditures must be reported by general service category, deleted text beginas listed in
subdivision 5,
deleted text end and include a separate category for administrative expenses.

new text begin (b) On or before March 15, 2024, and March 15, 2026, a political subdivision that has
established or joined a special taxing district authorized under this section after June 30,
2021, shall submit a levy and expenditure report to the commissioner of revenue and to the
house of representatives and senate committees with jurisdiction over taxes and property
taxes. The report must include:
new text end

new text begin (1) the amount of the political subdivision's levy, and its actual expenditure of the
subdivision's levy revenues, including the amount attributable to fire protection and
emergency medical services, for taxes payable in each of the two taxes payable years prior
to establishing or joining a special taxing district authorized under this section;
new text end

new text begin (2) the political subdivision's levy, and its actual expenditure of the subdivision's levy
revenues, for taxes payable in each of the taxes payable years after establishing or joining
a special taxing district authorized under this section, up to, and including, taxes payable
in 2024, and taxes payable in 2026; and
new text end

new text begin (3) a certification from the political subdivision that the subdivision's levy for each of
the taxes payable years after establishing or joining a special taxing district authorized under
this section, up to, and including, taxes payable in 2024, and taxes payable in 2026, does
not include expenditures for fire protection, emergency medical services, or both, except
as provided in subdivision 4, paragraph (b), or those necessary to establish, or join, a district
as provided in this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to districts established after June 30, 2021, except that districts established prior to
June 30, 2021, are eligible for changes made to subdivisions 4 and 6 beginning with property
taxes payable in 2022.
new text end

Sec. 2.

Minnesota Statutes 2020, section 273.124, subdivision 1, is amended to read:


Subdivision 1.

General rule.

(a) Residential real estate that is occupied and used for
the purposes of a homestead by its owner, who must be a Minnesota resident, is a residential
homestead.

Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and used
as a homestead by its owner, who must be a Minnesota resident, is an agricultural homestead.

Dates for establishment of a homestead and homestead treatment provided to particular
types of property are as provided in this section.

Property held by a trustee under a trust is eligible for homestead classification if the
requirements under this chapter are satisfied.

The assessor shall require proof, as provided in subdivision 13, of the facts upon which
classification as a homestead may be determined. Notwithstanding any other law, the assessor
may at any time require a homestead application to be filed in order to verify that any
property classified as a homestead continues to be eligible for homestead status.
Notwithstanding any other law to the contrary, the Department of Revenue may, upon
request from an assessor, verify whether an individual who is requesting or receiving
homestead classification has filed a Minnesota income tax return as a resident for the most
recent taxable year for which the information is available.

When there is a name change or a transfer of homestead property, the assessor may
reclassify the property in the next assessment unless a homestead application is filed to
verify that the property continues to qualify for homestead classification.

(b) For purposes of this section, homestead property shall include property which is used
for purposes of the homestead but is separated from the homestead by a road, street, lot,
waterway, or other similar intervening property. The term "used for purposes of the
homestead" shall include but not be limited to uses for gardens, garages, or other outbuildings
commonly associated with a homestead, but shall not include vacant land held primarily
for future development. In order to receive homestead treatment for the noncontiguous
property, the owner must use the property for the purposes of the homestead, and must apply
to the assessor, both by the deadlines given in subdivision 9. After initial qualification for
the homestead treatment, additional applications for subsequent years are not required.

(c) Residential real estate that is occupied and used for purposes of a homestead by a
relative of the owner is a homestead but only to the extent of the homestead treatment that
would be provided if the related owner occupied the property. For purposes of this paragraph
and paragraph (g), "relative" means a parent, stepparent, child, stepchild, grandparent,
grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship may be by blood
or marriage. Property that has been classified as seasonal residential recreational property
at any time during which it has been owned by the current owner or spouse of the current
owner will not be reclassified as a homestead unless it is occupied as a homestead by the
owner; this prohibition also applies to property that, in the absence of this paragraph, would
have been classified as seasonal residential recreational property at the time when the
residence was constructed. Neither the related occupant nor the owner of the property may
claim a property tax refund under chapter 290A for a homestead occupied by a relative. In
the case of a residence located on agricultural land, only the house, garage, and immediately
surrounding one acre of land shall be classified as a homestead under this paragraph, except
as provided in paragraph (d).

(d) Agricultural property that is occupied and used for purposes of a homestead by a
relative of the owner, is a homestead, only to the extent of the homestead treatment that
would be provided if the related owner occupied the property, and only if all of the following
criteria are met:

(1) the relative who is occupying the agricultural property is a grandchild, child, sibling,
deleted text begin ordeleted text end parentnew text begin, grandparent, stepparent, stepchild, uncle, aunt, nephew, or niecenew text end of the owner of
the agricultural property or of the spouse of the owner;

(2) the owner of the agricultural property must be a Minnesota resident;

(3) the owner of the agricultural property must not receive homestead treatment on any
other agricultural property in Minnesota; and

(4) the owner of the agricultural property is limited to only one agricultural homestead
per family under this paragraph.

Neither the related occupant nor the owner of the property may claim a property tax
refund under chapter 290A for a homestead occupied by a relative qualifying under this
paragraph. For purposes of this paragraph, "agricultural property" means the house, garage,
other farm buildings and structures, and agricultural land.

Application must be made to the assessor by the owner of the agricultural property to
receive homestead benefits under this paragraph. The assessor may require the necessary
proof that the requirements under this paragraph have been met.

(e) In the case of property owned by a property owner who is married, the assessor must
not deny homestead treatment in whole or in part if only one of the spouses occupies the
property and the other spouse is absent due to: (1) marriage dissolution proceedings, (2)
legal separation, (3) employment or self-employment in another location, or (4) other
personal circumstances causing the spouses to live separately, not including an intent to
obtain two homestead classifications for property tax purposes. To qualify under clause (3),
the spouse's place of employment or self-employment must be at least 50 miles distant from
the other spouse's place of employment, and the homesteads must be at least 50 miles distant
from each other.

(f) The assessor must not deny homestead treatment in whole or in part if:

(1) in the case of a property owner who is not married, the owner is absent due to
residence in a nursing home, boarding care facility, or an elderly assisted living facility
property as defined in section 273.13, subdivision 25a, and the property is not otherwise
occupied; or

(2) in the case of a property owner who is married, the owner or the owner's spouse or
both are absent due to residence in a nursing home, boarding care facility, or an elderly
assisted living facility property as defined in section 273.13, subdivision 25a, and the property
is not occupied or is occupied only by the owner's spouse.

(g) If an individual is purchasing property with the intent of claiming it as a homestead
and is required by the terms of the financing agreement to have a relative shown on the deed
as a co-owner, the assessor shall allow a full homestead classification. This provision only
applies to first-time purchasers, whether married or single, or to a person who had previously
been married and is purchasing as a single individual for the first time. The application for
homestead benefits must be on a form prescribed by the commissioner and must contain
the data necessary for the assessor to determine if full homestead benefits are warranted.

(h) If residential or agricultural real estate is occupied and used for purposes of a
homestead by a child of a deceased owner and the property is subject to jurisdiction of
probate court, the child shall receive relative homestead classification under paragraph (c)
or (d) to the same extent they would be entitled to it if the owner was still living, until the
probate is completed. For purposes of this paragraph, "child" includes a relationship by
blood or by marriage.

(i) If a single-family home, duplex, or triplex classified as either residential homestead
or agricultural homestead is also used to provide licensed child care, the portion of the
property used for licensed child care must be classified as a part of the homestead property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2022.
new text end

Sec. 3.

Minnesota Statutes 2020, section 273.124, subdivision 9, is amended to read:


Subd. 9.

Homestead established after assessment date.

Any property that was not
used for the purpose of a homestead on the assessment date, but which was used for the
purpose of a homestead on December deleted text begin1deleted text endnew text begin 31new text end of a year, constitutes class 1 or class 2a.

Any taxpayer meeting the requirements of this subdivision must notify the county
assessor, or the assessor who has the powers of the county assessor under section 273.063,
in writing, by December deleted text begin15deleted text endnew text begin 31new text end of the year of occupancy in order to qualify under this
subdivision. The assessor must not deny full homestead treatment to a property that is
partially homesteaded on January 2 but occupied for the purpose of a full homestead on
December deleted text begin1deleted text endnew text begin 31new text end of a year.

The county assessor and the county auditor may make the necessary changes on their
assessment and tax records to provide for proper homestead classification as provided in
this subdivision.

If homestead classification has not been requested as of December deleted text begin15deleted text endnew text begin 31new text end, the assessor
will classify the property as nonhomestead for the current assessment year for taxes payable
in the following year, provided that the owner of any property qualifying under this
subdivision, which has not been accorded the benefits of this subdivision, may be entitled
to receive homestead classification by proper application as provided in section 375.192.

The county assessor may publish in a newspaper of general circulation within the county
a notice requesting the public to file an application for homestead as soon as practicable
after acquisition of a homestead, but no later than December deleted text begin15deleted text endnew text begin 31new text end.

The county assessor shall publish in a newspaper of general circulation within the county
no later than December 1 of each year a notice informing the public of the requirement to
file an application for homestead by December deleted text begin15deleted text endnew text begin 31new text end.

In the case of manufactured homes assessed as personal property, the homestead must
be established, and a homestead classification requested, by May 29 of the assessment year.
The assessor may include information on these deadlines for manufactured homes assessed
as personal property in the published notice or notices.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2021.
new text end

Sec. 4.

Minnesota Statutes 2020, section 273.124, subdivision 13, is amended to read:


Subd. 13.

Homestead application.

(a) A person who meets the homestead requirements
under subdivision 1 must file a homestead application with the county assessor to initially
obtain homestead classification.

(b) The commissioner shall prescribe the content, format, and manner of the homestead
application required to be filed under this chapter pursuant to section 270C.30. The
application must clearly inform the taxpayer that this application must be signed by all
owners who occupy the property or by the qualifying relative and returned to the county
assessor in order for the property to receive homestead treatment.

(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number of each occupant who is listed as an owner of
the property on the deed of record, the name and address of each owner who does not occupy
the property, and the name and Social Security number of the spouse of each occupying
owner. The application must be signed by each owner who occupies the property and by
each owner's spouse who occupies the property, or, in the case of property that qualifies as
a homestead under subdivision 1, paragraph (c), by the qualifying relative.

If a property owner occupies a homestead, the property owner's spouse may not claim
another property as a homestead unless the property owner and the property owner's spouse
file with the assessor an affidavit or other proof required by the assessor stating that the
property qualifies as a homestead under subdivision 1, paragraph (e).

Owners or spouses occupying residences owned by their spouses and previously occupied
with the other spouse, either of whom fail to include the other spouse's name and Social
Security number on the homestead application or provide the affidavits or other proof
requested, will be deemed to have elected to receive only partial homestead treatment of
their residence. The remainder of the residence will be classified as nonhomestead residential.
When an owner or spouse's name and Social Security number appear on homestead
applications for two separate residences and only one application is signed, the owner or
spouse will be deemed to have elected to homestead the residence for which the application
was signed.

(d) If residential real estate is occupied and used for purposes of a homestead by a relative
of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
the property to receive homestead status, a homestead application must be filed with the
assessor. The Social Security number of each relative occupying the property and the name
and Social Security number of the spouse of a relative occupying the property shall be
required on the homestead application filed under this subdivision. If a different relative of
the owner subsequently occupies the property, the owner of the property must notify the
assessor within 30 days of the change in occupancy. The Social Security number of a relative
occupying the property or the spouse of a relative occupying the property is private data on
individuals as defined by section 13.02, subdivision 12, but may be disclosed to the
commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture
Act to recover personal property taxes owing, to the county treasurer.

(e) The homestead application shall also notify the property owners that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or the
owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section 272.115. Failure to notify
the assessor within 30 days that the property has been sold, transferred, or that the owner,
the spouse of the owner, or the relative is no longer occupying the property as a homestead,
shall result in the penalty provided under this subdivision and the property will lose its
current homestead status.

(f) If a homestead application has not been filed with the county by December deleted text begin15deleted text endnew text begin 31new text end,
the assessor shall classify the property as nonhomestead for the current assessment year for
taxes payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section 375.192.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2021.
new text end

Sec. 5.

Minnesota Statutes 2020, section 273.128, is amended by adding a subdivision to
read:


new text begin Subd. 1a. new text end

new text begin Notice. new text end

new text begin Low-income rental property classified as class 4d under section 273.13,
subdivision 25, must post a notice within the property that all or a portion of the property
is classified as low-income rental property under section 273.13, subdivision 25. The notice
must be posted in an area accessible to all residents and must include the rent and income
restrictions required under subdivision 1. The notice must be annually updated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2022.
new text end

Sec. 6.

Minnesota Statutes 2020, section 273.128, is amended by adding a subdivision to
read:


new text begin Subd. 1b. new text end

new text begin Approval. new text end

new text begin A property owner must receive approval, by resolution of the
governing body of the city or town where the property is located, before submitting an initial
application to the Housing Finance Agency, as required under subdivision 2, for property
that has not, in whole or in part, been classified as class 4d under section 273.13, subdivision
25, prior to assessment year 2022. A property owner that has received approval as required
under this subdivision, and the certification made under subdivision 3, shall not be required
to seek approval under this subdivision prior to submitting an application under subdivision
2, in each subsequent year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2022.
new text end

Sec. 7.

Minnesota Statutes 2020, section 273.128, subdivision 2, is amended to read:


Subd. 2.

Application.

(a) Application for certification under this section must be filed
by March 31 of the levy year, or at a later date if the Housing Finance Agency deems
practicable. The application must be filed with the Housing Finance Agency, on a form
prescribed by the agency, and must contain the information required by the Housing Finance
Agency.

(b) Each application must include:

(1) the property tax identification number; and

(2) evidence that the property meets the requirements of deleted text beginsubdivisiondeleted text end new text beginsubdivisions new text end1new text begin, 1a,
and 1b
new text end.

(c) The Housing Finance Agency may charge an application fee approximately equal
to the costs of processing and reviewing the applications but not to exceed $10 per unit. If
imposed, the applicant must pay the application fee to the Housing Finance Agency. The
fee must be deposited in the housing development fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2022.
new text end

Sec. 8.

Minnesota Statutes 2020, section 273.13, subdivision 25, is amended to read:


Subd. 25.

Class 4.

(a) Class 4a is residential real estate containing four or more units
and used or held for use by the owner or by the tenants or lessees of the owner as a residence
for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
under section 272.02, and contiguous property used for hospital purposes, without regard
to whether the property has been platted or subdivided. The market value of class 4a property
has a classification rate of 1.25 percent.

(b) Class 4b includes:

(1) residential real estate containing less than four units, including property rented as a
short-term rental property for more than 14 days in the preceding year, that does not qualify
as class 4bb, other than seasonal residential recreational property;

(2) manufactured homes not classified under any other provision;

(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
classified under subdivision 23, paragraph (b) containing two or three units; and

(4) unimproved property that is classified residential as determined under subdivision
33.

For the purposes of this paragraph, "short-term rental property" means nonhomestead
residential real estate rented for periods of less than 30 consecutive days.

The market value of class 4b property has a classification rate of 1.25 percent.

(c) Class 4bb includes:

(1) nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property;

(2) a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b); and

(3) a condominium-type storage unit having an individual property identification number
that is not used for a commercial purpose.

Class 4bb property has the same classification rates as class 1a property under subdivision
22.

Property that has been classified as seasonal residential recreational property at any time
during which it has been owned by the current owner or spouse of the current owner does
not qualify for class 4bb.

(d) Class 4c property includes:

(1) except as provided in subdivision 22, paragraph (c), real and personal property
devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
for not more than 250 days in the year preceding the year of assessment. For purposes of
this clause, property is devoted to a commercial purpose on a specific day if any portion of
the property is used for residential occupancy, and a fee is charged for residential occupancy.
Class 4c property under this clause must contain three or more rental units. A "rental unit"
is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
equipped with water and electrical hookups for recreational vehicles. A camping pad offered
for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
under this clause regardless of the term of the rental agreement, as long as the use of the
camping pad does not exceed 250 days. In order for a property to be classified under this
clause, either (i) the business located on the property must provide recreational activities,
at least 40 percent of the annual gross lodging receipts related to the property must be from
business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
bookings by lodging guests during the year must be for periods of at least two consecutive
nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
providing recreational activities, or (ii) the business must contain 20 or fewer rental units,
and must be located in a township or a city with a population of 2,500 or less located outside
the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
of a state trail administered by the Department of Natural Resources. For purposes of item
(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
property also includes commercial use real property used exclusively for recreational
purposes in conjunction with other class 4c property classified under this clause and devoted
to temporary and seasonal residential occupancy for recreational purposes, up to a total of
two acres, provided the property is not devoted to commercial recreational use for more
than 250 days in the year preceding the year of assessment and is located within two miles
of the class 4c property with which it is used. In order for a property to qualify for
classification under this clause, the owner must submit a declaration to the assessor
designating the cabins or units occupied for 250 days or less in the year preceding the year
of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
share of the land on which they are located must be designated class 4c under this clause
as otherwise provided. The remainder of the cabins or units and a proportionate share of
the land on which they are located will be designated as class 3a. The owner of property
desiring designation as class 4c property under this clause must provide guest registers or
other records demonstrating that the units for which class 4c designation is sought were not
occupied for more than 250 days in the year preceding the assessment if so requested. The
portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
or meeting room, and (5) other nonresidential facility operated on a commercial basis not
directly related to temporary and seasonal residential occupancy for recreation purposes
does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
ski equipment; providing marina services, launch services, or guide services; or selling bait
and fishing tackle;

(2) qualified property used as a golf course if:

(i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
but a membership fee may not be required in order to use the property for golfing, and its
green fees for golfing must be comparable to green fees typically charged by municipal
courses; and

(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).

A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
the golf course is classified as class 3a property;

(3) real property up to a maximum of three acres of land owned and used by a nonprofit
community service oriented organization and not used for residential purposes on either a
temporary or permanent basis, provided that:

(i) the property is not used for a revenue-producing activity for more than six days in
the calendar year preceding the year of assessment; or

(ii) the organization makes annual charitable contributions and donations at least equal
to the property's previous year's property taxes and the property is allowed to be used for
public and community meetings or events for no charge, as appropriate to the size of the
facility.

For purposes of this clause:

(A) "charitable contributions and donations" has the same meaning as lawful gambling
purposes under section 349.12, subdivision 25, excluding those purposes relating to the
payment of taxes, assessments, fees, auditing costs, and utility payments;

(B) "property taxes" excludes the state general tax;

(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
Revenue Code; and

(D) "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.

Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
use of the property for social events open exclusively to members and their guests for periods
of less than 24 hours, when an admission is not charged nor any revenues are received by
the organization shall not be considered a revenue-producing activity.

The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the requirement
under item (ii) must file an application by May 1 with the assessor for eligibility for the
current year's assessment. The commissioner shall prescribe a uniform application form
and instructions;

(4) postsecondary student housing of not more than one acre of land that is owned by a
nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;

(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as
defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision
3a
, and (iii) class I manufactured home parks as defined in section 327C.01, subdivision
13
;

(6) real property that is actively and exclusively devoted to indoor fitness, health, social,
recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
located within the metropolitan area as defined in section 473.121, subdivision 2;

(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
section 272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and

(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
premise, prohibits commercial activity performed at the hangar.

If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
filed by the new owner with the assessor of the county where the property is located within
60 days of the sale;

(8) a privately owned noncommercial aircraft storage hangar not exempt under section
272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land abuts a public airport; and

(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
restricting the use of the premises, prohibiting commercial use or activity performed at the
hangar; and

(9) residential real estate, a portion of which is used by the owner for homestead purposes,
and that is also a place of lodging, if all of the following criteria are met:

(i) rooms are provided for rent to transient guests that generally stay for periods of 14
or fewer days;

(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
the basic room rate;

(iii) meals are not provided to the general public except for special events on fewer than
seven days in the calendar year preceding the year of the assessment; and

(iv) the owner is the operator of the property.

The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22;

(10) real property up to a maximum of three acres and operated as a restaurant as defined
under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
of its annual gross receipts from business conducted during four consecutive months. Gross
receipts from the sale of alcoholic beverages must be included in determining the property's
qualification under item (ii). The property's primary business must be as a restaurant and
not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
Owners of real property desiring 4c classification under this clause must submit an annual
declaration to the assessor by February 1 of the current assessment year, based on the
property's relevant information for the preceding assessment year;

(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
and devoted to recreational use for marina services. The marina owner must annually provide
evidence to the assessor that it provides services, including lake or river access to the public
by means of an access ramp or other facility that is either located on the property of the
marina or at a publicly owned site that abuts the property of the marina. No more than 800
feet of lakeshore may be included in this classification. Buildings used in conjunction with
a marina for marina services, including but not limited to buildings used to provide food
and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
as class 3a property; and

(12) real and personal property devoted to noncommercial temporary and seasonal
residential occupancy for recreation purposes.

Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
each parcel of noncommercial seasonal residential recreational property under clause (12)
has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
under clause (5), item (i), have the same classification rate as class 4b property, the market
value of manufactured home parks assessed under clause (5), item (ii), have a classification
rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by
shareholders in the cooperative corporation or association and a classification rate of one
percent if 50 percent or less of the lots are so occupied, and class I manufactured home
parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 percent,
(iii) commercial-use seasonal residential recreational property and marina recreational land
as described in clause (11), has a classification rate of one percent for the first $500,000 of
market value, and 1.25 percent for the remaining market value, (iv) the market value of
property described in clause (4) has a classification rate of one percent, (v) the market value
of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent,
(vi) that portion of the market value of property in clause (9) qualifying for class 4c property
has a classification rate of 1.25 percent, and (vii) property qualifying for classification under
clause (3) that is owned or operated by a congressionally chartered veterans organization
has a classification rate of one percent. The commissioner of veterans affairs must provide
a list of congressionally chartered veterans organizations to the commissioner of revenue
by June 30, 2017, and by January 1, 2018, and each year thereafter.

(e) Class 4d property is qualifying low-income rental housing certified to the assessor
by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of
the units in the building qualify as low-income rental housing units as certified under section
273.128, subdivision 3, only the proportion of qualifying units to the total number of units
in the building qualify for class 4d. The remaining portion of the building shall be classified
by the assessor based upon its use. Class 4d also includes the same proportion of land as
the qualifying low-income rental housing units are to the total units in the building. For all
properties qualifying as class 4d, the market value determined by the assessor must be based
on the normal approach to value using normal unrestricted rents.new text begin Class 4d property has a
classification rate of 0.25 percent.
new text end

deleted text begin (f) The first tier of market value of class 4d property has a classification rate of 0.75
percent. The remaining value of class 4d property has a classification rate of 0.25 percent.
For the purposes of this paragraph, the "first tier of market value of class 4d property" means
the market value of each housing unit up to the first tier limit. For the purposes of this
paragraph, all class 4d property value must be assigned to individual housing units. The
first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is
deleted text end deleted text begin adjusted each year by the average statewide change in estimated market value of property
classified as class 4a and 4d under this section for the previous assessment year, excluding
valuation change due to new construction, rounded to the nearest $1,000, provided, however,
that the limit may never be less than $100,000. Beginning with assessment year 2015, the
commissioner of revenue must certify the limit for each assessment year by November 1
of the previous year.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2022.
new text end

Sec. 9.

Minnesota Statutes 2020, section 273.13, subdivision 34, is amended to read:


Subd. 34.

Homestead of veteran with a disability 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 veteran with a disability 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 until such time as the
spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise
provided in paragraph (n). 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), until such time as the spouse remarries or
sells, transfers, or otherwise disposes of the property, except as otherwise provided in
paragraph (n).

(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 December deleted text begin15deleted text endnew text begin 31new text end of the first assessment year for which the exclusion
is sought. deleted text beginFor an application received after December deleted text enddeleted text begin15deleted text enddeleted text begin, the exclusion shall become deleted text enddeleted text begineffective
for the following assessment year.
deleted text end 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), until the spouse remarries or sells, transfers, or otherwise
disposes of the property, except as otherwise provided in paragraph (n), 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 veterans with a disability, 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.

(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:

(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed
under this paragraph;

(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;

(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

(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 begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2021.
new text end

Sec. 10.

new text begin [273.1388] LICENSED IN-HOME CHILD CARE PROVIDER CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin Property classified as class 1a under section 273.13,
subdivision 22, and that portion of property classified as class 2a under section 273.13,
subdivision 23, consisting of the house, garage, and surrounding one acre of land, and used
to operate a family day care or group family day care program as defined under Minnesota
Rules, chapter 9502, is eligible for the licensed in-home child care provider credit under
this section.
new text end

new text begin Subd. 2. new text end

new text begin Notice. new text end

new text begin By July 1, 2021, and each June 1 thereafter, the commissioner of human
services must provide a list to each county of all licensed family day care or group family
day care providers located within the county.
new text end

new text begin Subd. 3. new text end

new text begin Credit amount. new text end

new text begin For each qualifying property, the licensed in-home child care
provider credit is equal to 50 percent of the amount of net tax owed on the property for the
current taxes payable year after subtracting all other applicable credits as determined under
section 273.1393.
new text end

new text begin Subd. 4. new text end

new text begin Credit reimbursement. new text end

new text begin The county auditor must determine the tax reductions
allowed under this section within the county for each taxes payable year and must certify
that amount, including any prior year adjustments, to the commissioner of revenue as required
under section 270C.85, subdivision 2, clause (4). The commissioner of revenue must review
the certification for accuracy and may make necessary changes or return the certification
to the county auditor for correction.
new text end

new text begin Subd. 5. new text end

new text begin Payment. new text end

new text begin (a) The commissioner of revenue must reimburse each local taxing
jurisdiction, other than school districts, for the tax reductions granted under this section in
two equal installments on October 31 and December 26 of the taxes payable year for which
the reductions are granted, including in each payment the prior year adjustments certified
under section 270C.85, subdivision 2, for that taxes payable year.
new text end

new text begin (b) The commissioner of revenue must certify the total of tax reductions granted under
this section for each taxes payable year within each school district to the commissioner of
education and the commissioner of education must pay the reimbursement amounts to each
school district as provided in section 273.1392.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to make the payments required under
this section to taxing jurisdictions other than school districts is annually appropriated from
the general fund to the commissioner of revenue. An amount sufficient to make the payments
required under this section for each school district is annually appropriated from the general
fund to the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2022.
new text end

Sec. 11.

Minnesota Statutes 2020, section 273.1392, is amended to read:


273.1392 PAYMENT; SCHOOL DISTRICTS.

The amounts of bovine tuberculosis credit reimbursements under section 273.113;
conservation tax credits under section 273.119; disaster or emergency reimbursement under
sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;
new text begin licensed in-home child care provider credits under section 273.1388; new text endaids and credits under
section 273.1398; enterprise zone property credit payments under section 469.171; and
metropolitan agricultural preserve reduction under section 473H.10 for school districts,
shall be certified to the Department of Education by the Department of Revenue. The
amounts so certified shall be paid according to section 127A.45, subdivisions 9, 10, and 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 12.

Minnesota Statutes 2020, section 273.1393, is amended to read:


273.1393 COMPUTATION OF NET PROPERTY TAXES.

Notwithstanding any other provisions to the contrary, "net" property taxes are determined
by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in sections 273.1231 to 273.1235;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) the school bond credit as provided in section 273.1387;

(8) agricultural credit as provided in section 273.1384;

(9) taconite homestead credit as provided in section 273.135;

(10) supplemental homestead credit as provided in section 273.1391; deleted text beginand
deleted text end

(11) the bovine tuberculosis zone credit, as provided in section 273.113deleted text begin.deleted text endnew text begin; and
new text end

new text begin (12) the licensed in-home child care provider credit, as provided in section 273.1388.
new text end

The combination of all property tax credits must not exceed the gross tax amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2022.
new text end

Sec. 13.

Minnesota Statutes 2020, 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 deleted text begin$737,090,000deleted text endnew text begin
$716,990,000
new text end for taxes payable in deleted text begin2020deleted text endnew text begin 2022new text end and thereafter. The state general levy for
seasonal-recreational property is $41,690,000 for taxes payable in 2020 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 to the commissioner under section 270C.85,
subdivision 2, clause (4), 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 beginning with property taxes payable
in 2022 and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2020, section 275.025, subdivision 2, is amended to read:


Subd. 2.

Commercial-industrial tax capacity.

For the purposes of this section,
"commercial-industrial tax capacity" means the tax capacity of all taxable property classified
as class 3 or class 5(1) under section 273.13, excluding:

(1) the tax capacity attributable to the first deleted text begin$100,000deleted text endnew text begin $150,000new text end of market value of each
parcel of commercial-industrial property as defined under section 273.13, subdivision 24,
clauses (1) and (2);

(2) electric generation attached machinery under class 3; and

(3) property described in section 473.625.

County commercial-industrial tax capacity amounts are not adjusted for the captured
net tax capacity of a tax increment financing district under section 469.177, subdivision 2,
the net tax capacity of transmission lines deducted from a local government's total net tax
capacity under section 273.425, or fiscal disparities contribution and distribution net tax
capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures
for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and
(2), shall apply in determining the portion of a property eligible to be considered within the
first deleted text begin$100,000deleted text endnew text begin $150,000new text end of market value.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2022 and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2020, section 275.065, subdivision 3, is amended to read:


Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare and
the county treasurer shall deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed on the county's current year's
assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
the treasurer may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes each
taxing authority proposes to collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax amount will be its proposed tax.
The notice must clearly state for each city that has a population over 500, county, school
district, regional library authority established under section 134.201, deleted text beginanddeleted text end metropolitan taxing
districts as defined in paragraph (i)new text begin, and fire protection and emergency medical services
special taxing districts established under section 144F.01
new text end, the time and place of a meeting
for each taxing authority in which the budget and levy will be discussed and public input
allowed, prior to the final budget and levy determination. The taxing authorities must provide
the county auditor with the information to be included in the notice on or before the time it
certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
must provide a telephone number for the taxing authority that taxpayers may call if they
have questions related to the notice and an address where comments will be received by
mail, except that no notice required under this section shall be interpreted as requiring the
printing of a personal telephone number or address as the contact information for a taxing
authority. If a taxing authority does not maintain public offices where telephone calls can
be received by the authority, the authority may inform the county of the lack of a public
telephone number and the county shall not list a telephone number for that taxing authority.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used for
computing property taxes payable in the following year and for taxes payable in the current
year as each appears in the records of the county assessor on November 1 of the current
year; and, in the case of residential property, whether the property is classified as homestead
or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, agricultural homestead credit under section 273.1384, school building bond agricultural
credit under section 273.1387,new text begin the licensed in-home child care provider credit under section
273.1388,
new text end voter approved school levy, other local school levy, and the sum of the special
taxing districts, and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement district
as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed tax
unless the town changes its levy at a special town meeting under section 365.52. If a school
district has certified under section 126C.17, subdivision 9, that a referendum will be held
in the school district at the November general election, the county auditor must note next
to the school district's proposed amount that a referendum is pending and that, if approved
by the voters, the tax amount may be higher than shown on the notice. In the case of the
city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
the St. Paul Library Agency must be listed separately from the remaining amount of the
city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
listed separately from the remaining amount of the county's levy. In the case of a parcel
where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated separately and not included in the
sum of the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and the
total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include the
following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified, including
bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value reductions
for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within three
days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
districts" means the following taxing districts in the seven-county metropolitan area that
levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the county
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be included with the appropriate county's levy.

(j) The governing body of a county, city, or school district may, with the consent of the
county board, include supplemental information with the statement of proposed property
taxes about the impact of state aid increases or decreases on property tax increases or
decreases and on the level of services provided in the affected jurisdiction. This supplemental
information may include information for the following year, the current year, and for as
many consecutive preceding years as deemed appropriate by the governing body of the
county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and local
government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2022.
new text end

Sec. 16.

Minnesota Statutes 2020, section 275.066, is amended to read:


275.066 SPECIAL TAXING DISTRICTS; DEFINITION.

For the purposes of property taxation and property tax state aids, the term "special taxing
districts" includes the following entities:

(1) watershed districts under chapter 103D;

(2) sanitary districts under sections 442A.01 to 442A.29;

(3) regional sanitary sewer districts under sections 115.61 to 115.67;

(4) regional public library districts under section 134.201;

(5) park districts under chapter 398;

(6) regional railroad authorities under chapter 398A;

(7) hospital districts under sections 447.31 to 447.38;

(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;

(9) Duluth Transit Authority under sections 458A.21 to 458A.37;

(10) regional development commissions under sections 462.381 to 462.398;

(11) housing and redevelopment authorities under sections 469.001 to 469.047;

(12) port authorities under sections 469.048 to 469.068;

(13) economic development authorities under sections 469.090 to 469.1081;

(14) Metropolitan Council under sections 473.123 to 473.549;

(15) Metropolitan Airports Commission under sections 473.601 to 473.679;

(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;

(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter
437, section 1;

(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;

(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections
1 to 6;

(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5,
section 39;

(21) Middle Mississippi River Watershed Management Organization under sections
103B.211 and 103B.241;

(22) new text beginfire protection and new text endemergency medical services special taxing districts under section
144F.01;

(23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251;

(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
under Laws 2003, First Special Session chapter 21, article 4, section 12;

(25) an airport authority created under section 360.0426; and

(26) any other political subdivision of the state of Minnesota, excluding counties, school
districts, cities, and towns, that has the power to adopt and certify a property tax levy to the
county auditor, as determined 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 and
applies to districts established after June 30, 2021.
new text end

Sec. 17.

Minnesota Statutes 2020, section 276.04, subdivision 2, is amended to read:


Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the printing of
the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
amounts due all other special taxing districts, if any, may be aggregated except that any
levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
under the appropriate county's levy. If the county levy under this paragraph includes an
amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
the amount attributable for that purpose must be separately stated from the remaining county
levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
an amount for public library service under section 134.07, the amount attributable for that
purpose may be separated from the remaining county levy amount. The amount of the tax
on homesteads qualifying under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before subtraction of the deferred property
tax amount. The amount of the tax on contamination value imposed under sections 270.91
to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
amount of any special assessments, may be rounded to the nearest even whole dollar. For
purposes of this section whole odd-numbered dollars may be adjusted to the next higher
even-numbered dollar. The amount of market value excluded under section 273.11,
subdivision 16
, if any, must also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures taxed
as personal property shall contain the same information that is required on the tax statements
for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's homestead market value exclusion under section 273.13, subdivision
35;

(3) the property's taxable market value under section 272.03, subdivision 15;

(4) the property's gross tax, before credits;

(5) for agricultural properties, the credits under sections 273.1384 and 273.1387;

(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
new text begin 273.1388; new text end273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount
of credit received under section 273.135 must be separately stated and identified as "taconite
tax relief"; and

(7) the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current year,
and encouraging taxpayers to attend the hearings. If the county allows notices to be included
in the envelope containing the property tax statement, and if more than one taxing district
relative to a given property decides to include a notice with the tax statement, the county
treasurer or auditor must coordinate the process and may combine the information on a
single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2022.
new text end

Sec. 18.

Minnesota Statutes 2020, 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) alimony received to the extent not included in the recipient's income;

(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;

(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; deleted text beginor
deleted text end

(8) alimony paidnew text begin; or
new text end

new text begin (9) veterans disability compensation paid under title 38 of the United States Codenew text end.

(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 had a disability 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 following terms have the meanings given:

(1) "exemption amount" means the exemption amount under section 290.0121,
subdivision 1
, paragraph (b), for the taxable year for which the income is reported;

(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

(3) "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 for refund claims based on property taxes
payable in 2022 and rent paid in 2021 and thereafter.
new text end

Sec. 19.

Minnesota Statutes 2020, section 429.021, subdivision 1, is amended to read:


Subdivision 1.

Improvements authorized.

The council of a municipality shall have
power to make the following improvements:

(1) To acquire, open, and widen any street, and to improve the same by constructing,
reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking
strips of any material, or by grading, graveling, oiling, or otherwise improving the same,
including the beautification thereof and including storm sewers or other street drainage and
connections from sewer, water, or similar mains to curb lines.

(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and sanitary
sewers and systems, including outlets, holding areas and ponds, treatment plants, pumps,
lift stations, service connections, and other appurtenances of a sewer system, within and
without the corporate limits.

(3) To construct, reconstruct, extend, and maintain steam heating mains.

(4) To install, replace, extend, and maintain street lights and street lighting systems and
special lighting systems.

(5) To acquire, improve, construct, reconstruct, extend, and maintain water works systems,
including mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks,
treatment plants, and other appurtenances of a water works system, within and without the
corporate limits.

(6) To acquire, improve and equip parks, open space areas, playgrounds, and recreational
facilities within or without the corporate limits.

(7) To plant trees on streets and provide for their trimming, care, and removal.

(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private
property and to fill the same.

(9) To construct, reconstruct, extend, and maintain dikes and other flood control works.

(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.

(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and
promote a pedestrian skyway system. Such improvement may be made upon a petition
pursuant to section 429.031, subdivision 3.

(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote
underground pedestrian concourses.

(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote public
malls, plazas or courtyards.

(14) To construct, reconstruct, extend, and maintain district heating systems.

(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire protection
systems in existing buildings, but only upon a petition pursuant to section 429.031,
subdivision 3
.

(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway
sound barriers.

(17) To improve, construct, reconstruct, extend, and maintain gas and electric distribution
facilities owned by a municipal gas or electric utility.

(18) To purchase, install, and maintain signs, posts, and other markers for addressing
related to the operation of enhanced 911 telephone service.

(19) To improve, construct, extend, and maintain facilities for Internet access and other
communications purposes, if the council finds that:

(i) the facilities are necessary to make available Internet access or other communications
services that are not and will not be available through other providers or the private market
in the reasonably foreseeable future; and

(ii) the service to be provided by the facilities will not compete with service provided
by private entities.

(20) To assess affected property owners for all or a portion of the costs agreed to with
an electric utility, telecommunications carrier, or cable system operator to bury or alter a
new or existing distribution system within the public right-of-way that exceeds the utility's
design and construction standards, or those set by law, tariff, or franchise, but only upon
petition under section 429.031, subdivision 3.

(21) To assess affected property owners for repayment of voluntary energy improvement
financings under section 216C.436, subdivision 7, or 216C.437, subdivision 28.

new text begin (22) To construct, reconstruct, alter, extend, operate, maintain, and promote energy
improvement projects in existing buildings, provided that:
new text end

new text begin (i) a petition for the improvement is made by a property owner under section 429.031,
subdivision 3;
new text end

new text begin (ii) the municipality funds and administers the energy improvement project;
new text end

new text begin (iii) project funds are only used for the installation of improvements to heating,
ventilation, and air conditioning equipment and building envelope and for the installation
of renewable energy systems;
new text end

new text begin (iv) each property owner petitioning for the improvement receives notice that free or
low-cost energy improvements may be available under federal, state, or utility programs;
new text end

new text begin (v) for energy improvement projects on residential property, only residential property
having five or more units may obtain financing for projects under this clause; and
new text end

new text begin (vi) prior to financing an energy improvement project or imposing an assessment for a
project, written notice is provided to the mortgage lender of any mortgage encumbering or
otherwise secured by the property proposed to be improved.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for special assessments payable in 2022
and thereafter.
new text end

Sec. 20.

Minnesota Statutes 2020, section 429.031, subdivision 3, is amended to read:


Subd. 3.

Petition by all owners.

Whenever all owners of real property abutting upon
any street named as the location of any improvement shall petition the council to construct
the improvement and to assess the entire cost against their property, the council may, without
a public hearing, adopt a resolution determining such fact and ordering the improvement.
The validity of the resolution shall not be questioned by any taxpayer or property owner or
the municipality unless an action for that purpose is commenced within 30 days after adoption
of the resolution as provided in section 429.036. Nothing herein prevents any property
owner from questioning the amount or validity of the special assessment against the owner's
property pursuant to section 429.081. In the case of a petition for the municipality to own
and install a fire protection systemnew text begin, energy improvement projectsnew text end, a pedestrian skyway
system, or on-site water contaminant improvements, the petition must contain or be
accompanied by an undertaking satisfactory to the city by the petitioner that the petitioner
will grant the municipality the necessary property interest in the building to permit the city
to enter upon the property and the building to construct, maintain, and operate the fire
protection systemnew text begin, energy improvement projectsnew text end, pedestrian skyway system, or on-site water
contaminant improvements. In the case of a petition for the installation of a privately owned
fire protection systemnew text begin, energy improvement projectsnew text end, a privately owned pedestrian skyway
system, or privately owned on-site water contaminant improvements, the petition shall
contain the plans and specifications for the improvement, the estimated cost of the
improvement and a statement indicating whether the city or the owner will contract for the
construction of the improvement. If the owner is contracting for the construction of the
improvement, the city shall not approve the petition until it has reviewed and approved the
plans, specifications, and cost estimates contained in the petition. The construction cost
financed under section 429.091 shall not exceed the amount of the cost estimate contained
in the petition. In the case of a petition for the installation of a fire protection systemnew text begin, energy
improvement projects
new text end, a pedestrian skyway system, or on-site water contaminant
improvements, the petitioner may request abandonment of the improvement at any time
after it has been ordered pursuant to subdivision 1 and before contracts have been awarded
for the construction of the improvement under section 429.041, subdivision 2. If such a
request is received, the city council shall abandon the proceedings but in such case the
petitioner shall reimburse the city for any and all expenses incurred by the city in connection
with the improvement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for special assessments payable in 2022
and thereafter.
new text end

Sec. 21. new text beginSUPPLEMENTAL 2022 CITY AID DISTRIBUTION.
new text end

new text begin (a) Supplemental aid for a city equals the greater of: (1) zero; or (2) the difference
between the local government aid amount under Minnesota Statutes, section 477A.013,
subdivision 9, certified for the city for aid payable in 2021, minus the local government aid
amount under Minnesota Statutes, section 477A.013, subdivision 9, certified for the city
for aid payable in 2022.
new text end

new text begin (b) The commissioner of revenue must notify a city of its supplemental aid amount
before August 1, 2021, and must pay the aid in calendar year 2022 in two installments on
the dates specified in Minnesota Statutes, section 477A.015.
new text end

new text begin (c) Supplemental aid under this section must not be included for any calculations under
Minnesota Statutes, section 477A.013, that rely on prior year aid amounts.
new text end

new text begin (d) An amount sufficient to pay supplemental aid under this section is appropriated in
fiscal year 2023 from the general fund to the commissioner of revenue. This is a onetime
appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payable in calendar year 2022.
new text end

ARTICLE 5

TAX INCREMENT FINANCING

Section 1. new text beginCITY OF BLOOMINGTON; TIF AUTHORITY; AMERICAN
BOULEVARD.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Pursuant to the special rules established in subdivision
2, the housing and redevelopment authority of the city of Bloomington or the city of
Bloomington may establish a redevelopment district within the city of Bloomington, limited
to the following parcels, identified by tax identification numbers, together with adjacent
roads and rights-of-way: 04-027-24-11-0032, 04-027-24-11-0033, and 04-027-24-11-0034.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end

new text begin (1) the district meets all the requirements of Minnesota Statutes, section 469.174,
subdivision 10;
new text end

new text begin (2) expenditures incurred in connection with the development of the property described
in subdivision 1 meet the requirements of Minnesota Statutes, section 469.176, subdivision
4j; and
new text end

new text begin (3) increments generated from the district may be expended on undergrounding or
overhead power lines, transformers, and related utility infrastructure within the project area
and all such expenditures are deemed expended on activities within the district for purposes
of Minnesota Statutes, section 469.1763.
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 the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 2. new text beginCITY OF BLOOMINGTON; TIF AUTHORITY; 98TH & ALDRICH.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Pursuant to the special rules established in subdivision
2, the housing and redevelopment authority of the city of Bloomington or the city of
Bloomington may establish a redevelopment district within the city of Bloomington, limited
to the following parcels, identified by tax identification numbers, together with adjacent
roads and rights-of-way: 16-027-24-41-0010, 16-027-24-41-0011, and 16-027-24-41-0012.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end

new text begin (1) the district meets all the requirements of Minnesota Statutes, section 469.174,
subdivision 10; and
new text end

new text begin (2) expenditures incurred in connection with the development of the property described
in subdivision 1 meet the requirements of Minnesota Statutes, section 469.176, subdivision
4j.
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 the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 3. new text beginCITY OF BURNSVILLE; TIF AUTHORITY; BURNSVILLE CENTER
MALL.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
economic development authority of the city of Burnsville or the city of Burnsville may
establish one or more redevelopment districts located wholly within the area of the city of
Burnsville, Dakota County, Minnesota, limited to the parcels comprising the Burnsville
Center mall together with adjacent roads and rights-of-way.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end

new text begin (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end

new text begin (2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and
new text end

new text begin (3) increments generated from the districts may be expended for the construction and
acquisition of property for a bridge, tunnel, or other connector from the property described
in subdivision 1 across adjacent roads and rights-of-way and all such expenditures are
deemed expended on activities within the district for purposes of Minnesota Statutes, section
469.1763.
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 Burnsville and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 4. new text beginCITY OF MOUNTAIN LAKE; TIF DISTRICT NO. 1-8; FIVE-YEAR RULE
EXTENSION.
new text end

new text begin (a) The requirement 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, is extended by a five-year period for Tax Increment Financing District
No. 1-8, administered by the city of Mountain Lake or its economic development authority.
new text end

new text begin (b) The requirement of Minnesota Statutes, section 469.1763, subdivision 4, relating to
the use of increment after the expiration of the five-year period under Minnesota Statutes,
section 469.1763, subdivision 3, is extended to the 11th year for Tax Increment Financing
District No. 1-8.
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 Mountain Lake and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 5. new text beginCITY OF RAMSEY; TIF DISTRICT NO. 14; FIVE-YEAR RULE
EXTENSION.
new text end

new text begin (a) The requirement 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, is extended by a five-year period to November 28, 2026, for Tax Increment
Financing District No. 14 administered by the city of Ramsey.
new text end

new text begin (b) The requirement of Minnesota Statutes, section 469.1763, subdivision 4, relating to
the use of increment after the expiration of the five-year period under Minnesota Statutes,
section 469.1763, subdivision 3, is extended to the 16th year for Tax Increment Financing
District No. 14.
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 Ramsey and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 6. new text beginCITY OF WAYZATA; TIF DISTRICT NO. 6; EXPENDITURES ALLOWED.
new text end

new text begin Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, the city of Wayzata
may expend increments generated from Tax Increment Financing District No. 6 for the
design and construction of the lakefront pedestrian walkway and community transient lake
public access infrastructure related to the Panoway on Wayzata Bay project, and all such
expenditures are deemed expended on activities within the district.
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 Wayzata, and its chief clerical officer, comply with the requirement of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 7. new text beginCITY OF WINDOM; TIF DISTRICT NO. 1-22; FIVE-YEAR RULE
EXTENSION; DURATION EXTENSION.
new text end

new text begin (a) The requirement 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, is considered to be met for Tax Increment Financing District No. 1-22,
administered by the city of Windom or its economic development authority, if activities are
undertaken within ten years of the district's certification.
new text end

new text begin (b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, relating
to the use of increment after the expiration of the five-year period under Minnesota Statutes,
section 469.1763, subdivision 3, is extended to the 11th year for Tax Increment Financing
District No. 1-22.
new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the city of
Windom, or its economic development authority, may elect to extend the duration of Tax
Increment Financing District No. 1-22, by five years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) and (b) are effective the day after the governing
body of the city of Windom and its chief clerical officer comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3. Paragraph (c) is effective upon compliance by the
city of Windom, Cottonwood County, and Independent School District No. 177 with the
requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
subdivisions 2 and 3.
new text end

Sec. 8. new text beginAFFORDABLE HOUSING DEVELOPMENT TAX ASSISTANCE REPORT.
new text end

new text begin (a) No later than January 31, 2022, the commissioner of revenue, in consultation with
the Minnesota Housing Finance Agency, the Minnesota State Auditor, the Association of
Minnesota Counties, and the League of Minnesota Cities, must produce a report on affordable
housing projects paid for in whole or in part by either tax increment, or from a city or county
housing trust fund for local housing development established under Minnesota Statutes,
section 462C.16. The commissioner must provide a copy of the report to the legislative
committees with jurisdiction over taxation, property taxation, and housing. The report must
comply with the requirements of Minnesota Statutes, sections 3.195 and 3.197.
new text end

new text begin (b) For housing projects financed in whole or in part by tax increment, the report shall
include the following:
new text end

new text begin (1) the identity of each housing tax increment financing district established under
Minnesota Statutes, chapter 469, or through special law, in the previous five years, including
the district's location, certification date, and projected decertification date;
new text end

new text begin (2) for each housing district identified under clause (1), a list of each housing project
financed in whole or in part from tax increment, including the percentage of area median
income relative to each housing project, and any income limits required under federal, state,
or local law for each housing project; and
new text end

new text begin (3) for any tax increment financing district that, pursuant to Minnesota Statutes, section
469.1763, subdivision 2, paragraph (d), increased the permitted amount of expenditures for
activities located outside the district in the last five years, the district's location, type of
district, certification date, projected decertification date, and detailed information relating
to each housing project financed, including the percentage of area median income relative
to each housing project, and any income limits required under federal, state, or local law
for each housing project.
new text end

new text begin (c) For each housing trust fund established under Minnesota Statutes, section 462C.16,
the report shall include the following:
new text end

new text begin (1) a copy of the ordinance or joint powers agreement establishing the trust fund; and
new text end

new text begin (2) an accounting of all authorized expenditures from the housing trust fund for each
calendar year, separated by each of the following expenditure types:
new text end

new text begin (i) administrative expenses;
new text end

new text begin (ii) grants, loans, and business guarantees for the development, rehabilitation, or financing
of housing, with detailed information as to each housing project, including the percentage
of area median income relative to each housing project, and any income limits required
under federal, state, or local law for each housing project;
new text end

new text begin (iii) matching of other funds from federal, state, or private resources for housing projects,
with details provided as to each housing project, including the percentage of area median
income relative to each housing project, and any income limits required under federal, state,
or local law for each housing project; and
new text end

new text begin (iv) down payment assistance, rental assistance, and home buyer counseling services.
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 2020, section 297A.993, subdivision 2, is amended to read:


Subd. 2.

Allocation; termination.

The proceeds of the taxes must be dedicated
exclusively to: (1) payment of the capital cost of a specific transportation project or
improvement; (2) payment of the costs, which may include both capital and operating costs,
of a specific transit project or improvement; (3) payment of the capital costs of a safe routes
to school program under section 174.40; deleted text beginordeleted text end (4) payment of transit operating costsnew text begin; or (5)
payment of the capital cost of constructing buildings and other facilities for maintaining
transportation or transit projects or improvements
new text end. The transportation or transit project or
improvement must be designated by the board of the county, or more than one county acting
under a joint powers agreement. Except for taxes for operating costs of a transit project or
improvement, or for transit operations, the taxes must terminate when revenues raised are
sufficient to finance the project. Nothing in this subdivision prohibits the exclusive dedication
of the proceeds of the taxes to payments for more than one project or improvement. After
a public hearing a county may, by resolution, dedicate the proceeds of the tax for a new
enumerated project.

Sec. 2.

Minnesota Statutes 2020, section 453A.04, subdivision 21, is amended to read:


Subd. 21.

deleted text beginAll other powersdeleted text endnew text begin Exercising powers of a municipal power agencynew text end.

deleted text beginIt may
exercise all other powers not inconsistent with the Constitution of the state of Minnesota
or the United States Constitution, which powers may be reasonably necessary or appropriate
for or incidental to the effectuation of its authorized purposes or to the exercise of any of
the powers enumerated in this section, and generally may exercise in connection with its
property and affairs, and in connection with property within its control, any and all powers
which might be exercised by a natural person or a private corporation in connection with
similar property and affairs
deleted text endnew text begin It may exercise the powers of a municipal power agency under
chapter 453, for the limited purpose of engaging in tax-exempt prepayments and related
transactions as described in section 148(b)(4) of the Internal Revenue Code of 1986, as
amended, and Code of Federal Regulations, title 26, part 1, section 1.148-1(e)(2)(iii), both
as may be amended from time to time, or as may otherwise be authorized by statute or the
commissioner of internal revenue
new text end.

Sec. 3.

Minnesota Statutes 2020, section 453A.04, is amended by adding a subdivision to
read:


new text begin Subd. 22. new text end

new text begin All other powers. new text end

new text begin It may exercise all other powers not inconsistent with the
Minnesota Constitution or the United States Constitution, which powers may be reasonably
necessary or appropriate for or incidental to the effectuation of its authorized purposes or
to the exercise of any of the powers enumerated in this section, and generally may exercise
in connection with its property and affairs, and in connection with property within its control,
any and all powers which might be exercised by a natural person or a private corporation
in connection with similar property and affairs.
new text end

Sec. 4.

Minnesota Statutes 2020, section 465.71, is amended to read:


465.71 INSTALLMENT, LEASE PURCHASE; CITY, COUNTY, TOWN,
SCHOOL.

A home rule charter city, statutory city, county, town, or school district may purchase
personal property under an installment contract, or lease real or personal property with an
option to purchase under a lease-purchase agreement, by which contract or agreement title
is retained by the seller or vendor or assigned to a third party as security for the purchase
price, including interest, if any, but such purchases are subject to statutory and charter
provisions applicable to the purchase of real or personal property. For purposes of the bid
requirements contained in section 471.345, "the amount of the contract" shall include the
total of all lease payments for the entire term of the lease under a lease-purchase agreement.
The obligation created by new text beginan installment contract or new text enda lease-purchase agreement for personal
propertynew text begin,new text end or new text beginan installment contract or new text enda lease-purchase agreement for real property if the
amount of the contract for purchase of the real property is less than $1,000,000new text begin,new text end shall not
be included in the calculation of net debt for purposes of section 475.53, and shall not
constitute debt under any other statutory provision. No election shall be required in
connection with the execution of new text beginan installment contract or new text enda lease-purchase agreement
authorized by this section. The city, county, town, or school district must have the right to
terminate a lease-purchase agreement at the end of any fiscal year during its term.

Sec. 5.

Minnesota Statutes 2020, section 475.56, is amended to read:


475.56 INTEREST RATE.

(a) Any municipality issuing obligations under any law may issue obligations bearing
interest at a single rate or at rates varying from year to year which may be lower or higher
in later years than in earlier years. deleted text beginSuch higher rate for any period prior to maturity may be
represented in part by separate coupons designated as additional coupons, extra coupons,
or B coupons, but
deleted text end The highest aggregate rate of interest contracted to be so paid for any
period shall not exceed the maximum rate authorized by lawdeleted text begin. Such higher rate may also be
represented in part by the issuance of additional obligations of the same series, over and
above but not exceeding two percent of the amount otherwise authorized to be issued, and
the amount of such additional obligations shall not be included in the amount required by
section 475.59 to be stated in any bond resolution, notice, or ballot, or in the sale price
required by section 475.60 or any other law to be paid; but if the principal amount of the
entire series exceeds its cash sale price, such excess shall not, when added to the total amount
of interest payable on all obligations of the series to their stated maturity dates, cause
deleted text end new text beginand
new text end the average annual rate of such interest deleted text begintodeleted text endnew text begin may notnew text end exceed the maximum rate authorized by
law. This section does not authorize a provision in any such obligations for the payment of
a higher rate of interest after maturity than before.

(b) Any municipality issuing obligations under any law may sell original issue discount
new text begin or premium new text endobligations deleted text beginhaving a stated principal amount in excess of the authorized amount
and the sale price, provided that:
deleted text end

deleted text begin (1) the sale price does not exceed by more than two percent the amount of obligations
otherwise authorized to be issued;
deleted text end

deleted text begin (2) the underwriting fee, discount, or other sales or underwriting commission does not
exceed two percent of the sale price; and
deleted text end

deleted text begin (3) the discount rate necessary to present value total principal and interest payments
over the term of the issue to the sale price does not exceed the lesser of the maximum rate
permitted by law for municipal obligations or ten percent
deleted text end.new text begin To determine the average annual
rate of interest on the obligations, any discount shall be added to, and any premium subtracted
from, the total amount of interest on the obligations to their stated maturity dates.
new text end

(c) Any obligation may bear interest at a rate varying periodically at the time or times
and on the terms, including convertibility to a fixed rate of interest, determined by the
governing body of the municipality, but the rate of interest for any period shall not exceed
any maximum rate of interest for the obligations established by law. For purposes of section
475.61, subdivisions 1 and 3, the interest payable on variable rate obligations for their term
shall be determined as if their rate of interest is the lesser of the maximum rate of interest
payable on the obligations in accordance with their terms or the rate estimated for such
purpose by the governing body, but if the interest rate is subsequently converted to a fixed
rate the levy may be modified to provide at least five percent in excess of amounts necessary
to pay principal of and interest at the fixed rate on the obligations when due. For purposes
of computing debt service or interest pursuant to section 475.67, subdivision 12, interest
throughout the term of bonds issued pursuant to this subdivision is deemed to accrue at the
rate of interest first borne by the bonds. The provisions of this paragraph do not apply to
general obligations issued by a statutory or home rule charter city with a population of less
than 7,500, as defined in section 477A.011, subdivision 3, or to general obligations that are
not rated A or better, or an equivalent subsequently established rating, by Standard and
Poor's Corporation, Moody's Investors Service or other similar nationally recognized rating
agency, except that any statutory or home rule charter city, regardless of population or bond
rating, may issue variable rate obligations as a participant in a bond pooling program
established by the League of Minnesota Cities that meets this bond rating requirement.

Sec. 6.

Minnesota Statutes 2020, section 475.58, subdivision 3b, is amended to read:


Subd. 3b.

Street reconstruction and bituminous overlays.

(a) A municipality may,
without regard to the election requirement under subdivision 1, issue and sell obligations
for street reconstruction or bituminous overlays, if the following conditions are met:

(1) the streets are reconstructed or overlaid under a street reconstruction or overlay plan
that describes the street reconstruction or overlay to be financed, the estimated costs, and
any planned reconstruction or overlay of other streets in the municipality over the next five
years, and the plan and issuance of the obligations has been approved by a vote of a two-thirds
majority of the members of the governing body present at the meeting following a public
hearing for which notice has been published in the official newspaper at least ten days but
not more than 28 days prior to the hearing; and

(2) if a petition requesting a vote on the issuance is signed by voters equal to five percent
of the votes cast in the last municipal general election and is filed with the municipal clerk
within 30 days of the public hearing, the municipality may issue the bonds only after
obtaining the approval of a majority of the voters voting on the question of the issuance of
the obligations. If the municipality elects not to submit the question to the voters, the
municipality shall not propose the issuance of bonds under this section for the same purpose
and in the same amount for a period of 365 days from the date of receipt of the petition. If
the question of issuing the bonds is submitted and not approved by the voters, the provisions
of section 475.58, subdivision 1a, shall apply.

(b) Obligations issued under this subdivision are subject to the debt limit of the
municipality and are not excluded from net debt under section 475.51, subdivision 4.

(c) For purposes of this subdivision, street reconstruction and bituminous overlays
deleted text begin includesdeleted text endnew text begin include but are not limited to:new text end utility replacement and relocation and other activities
incidental to the street reconstructiondeleted text begin,deleted text endnew text begin; the addition or reconstruction ofnew text end turn lanesnew text begin, bicycle
lanes, sidewalks, paths,
new text end and other improvements having a substantial public safety functiondeleted text begin,deleted text endnew text begin;new text end
realignmentsdeleted text begin,deleted text endnew text begin andnew text end other modifications to intersect with state and county roadsdeleted text begin,deleted text endnew text begin;new text end and the local
share of state and county road projects. For purposes of this subdivision, "street
reconstruction" includes expenditures for street reconstruction that have been incurred by
a municipality before approval of a street reconstruction plan, if such expenditures are
included in a street reconstruction plan approved on or before the date of the public hearing
under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.

(d) Except in the case of turn lanes, new text beginbicycle lanes, sidewalks, paths, and other new text endsafety
improvementsdeleted text begin,deleted text endnew text begin;new text end realignmentsdeleted text begin,deleted text endnew text begin;new text end intersection modificationsdeleted text begin,deleted text endnew text begin;new text end and the local share of state and
county road projects, street reconstruction and bituminous overlays does not include the
portion of project cost allocable to widening a street or adding curbs and gutters where none
previously existed.

Sec. 7.

Minnesota Statutes 2020, section 475.60, subdivision 1, is amended to read:


Subdivision 1.

Advertisement.

All obligations shall be negotiated and sold by the
governing body, except when authority therefor is delegated by the governing body or by
the charter of the municipality to a board, department, or officers of the municipality. deleted text beginExcept
as provided in section 475.56, obligations shall be sold at not less than par value plus accrued
interest to date of delivery and not greater than two percent greater than the amount
authorized to be issued plus accrued interest.
deleted text end Except as provided in subdivision 2 all
obligations shall be sold at competitive sale after notice given as provided in subdivision
3.

Sec. 8.

Minnesota Statutes 2020, section 475.67, subdivision 8, is amended to read:


Subd. 8.

Escrow account securities.

Securities purchased for the escrow account shall
be limited to:

(1) general obligations of the United States, securities whose principal and interest
payments are guaranteed by the United Statesnew text begin including but not limited to Resolution Funding
Corporation Interest Separate Trading of Registered Interest and Principal of Securities
(STRIPs) and United States Agency for International Development Bonds or STRIPs
new text end, and
securities issued by deleted text beginthe following agencies of the United States: Banks for Cooperatives,deleted text endnew text begin
United States government-sponsored enterprises including but not limited to
new text end Federal Home
Loan Banks, deleted text beginFederal Intermediate Credit Banks, Federal Land Banks, anddeleted text endnew text begin the Federal Farm
Credit System,
new text end the Federal National Mortgage Associationnew text begin, or the Federal Home Loan
Mortgage Corporation
new text end; or

(2) obligations issued or guaranteed by any state or any political subdivision of a state,
which at the date of purchase are rated in the highest or the next highest rating category by
Standard and Poor's Corporation, Moody's Investors Service, or a similar nationally
recognized rating agency, but not less than the rating on the refunded bonds immediately
prior to the refunding.

"Rating category," as used in this subdivision, means a generic securities rating category,
without regard in the case of a long-term rating category to any refinement or gradation of
such long-term rating category by a numerical modifier or otherwise.

Sec. 9. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2020, section 469.055, subdivision 7, new text end new text begin is repealed.
new text end

ARTICLE 7

PARTNERSHIP AUDITS

Section 1.

Minnesota Statutes 2020, 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 beginsectiondeleted text endnew text begin sectionsnew text end 289A.38new text begin to 289A.382new 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 retroactively 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 2020, 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.382, 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 retroactively 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 2020, 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 beginsectiondeleted text endnew text begin sectionsnew text end 289A.38new text begin to 289A.382new 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, 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 2020, section 289A.38, subdivision 7, is amended to read:


Subd. 7.

Federal tax changes.

(a) 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 deleted text beginchange or correction or renegotiation resultsdeleted text endnew text begin federal adjustmentsnew text end in writing to the
commissioner. The new text beginfederal adjustments new text endreport must be submitted within 180 days after the
final determination new text begindate new text endand 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 deleted text begindeterminationdeleted text endnew text begin adjustmentnew text end or a letter detailing how the federal deleted text begindeterminationdeleted text endnew text begin
adjustment
new text end 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.

(b) deleted text beginFor the purposes of paragraph (a), a change or correction includes any case where a
taxpayer reaches a closing agreement or compromise with the Internal Revenue Service
under section 7121 or 7122 of the Internal Revenue Code.
deleted text endnew text begin 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.382, and not this section.
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, 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.

Minnesota Statutes 2020, section 289A.38, subdivision 8, is amended to read:


Subd. 8.

Failure to report change or correction of federal return.

If a taxpayer fails
to make anew text begin federal adjustmentsnew text end report as required by subdivision 7new text begin or section 289A.382new text end, 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 thenew text begin federal
adjustments
new text end report should have been filed, notwithstanding any period of limitations to the
contrary.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively 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.

Minnesota Statutes 2020, section 289A.38, subdivision 9, is amended to read:


Subd. 9.

Report made of change or correction of federal return.

If a taxpayer is
required to make anew text begin federal adjustmentsnew text end report under subdivision 7new text begin or section 289A.382new text end, 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 thenew text begin federal
adjustments
new text end 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.

new text begin A taxpayer may make estimated payments to the commissioner of the tax expected to
result from a pending audit by the Internal Revenue Service. The taxpayer may make
estimated payments prior to the due date of the federal adjustments report without the
taxpayer having to file the report with the commissioner. The commissioner must credit the
estimated tax payments against any tax liability of the taxpayer ultimately found to be due
to the commissioner. The estimated payments limit the accrual of further statutory interest
on that amount. If the estimated tax payments exceed the final tax liability plus statutory
interest ultimately determined to be due, the taxpayer is entitled to a refund or credit for the
excess, provided the taxpayer files a federal adjustments report, or claim for refund or credit
of tax, no later than one year following the final determination date.
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, 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.

Minnesota Statutes 2020, 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 subdivisions 7 to 9new text begin and section 289A.382new text end regarding additional extensions apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively 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.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.38, subdivisions 7 to
9, 289A.381, and 289A.382.
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 from 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 "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 an audit or other action by the Internal Revenue
Service or other competent authority, if the taxpayer filed as a member of a combined report
under section 290.17, subdivision 4, the first day on which no related federal adjustments
arising from that audit remain to be finally determined as described in clause (1) for the
entire combined group;
new text end

new text begin (3) 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 date
on which the amended return, refund claim, or administrative adjustment request was filed;
or
new text end

new text begin (4) 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 after 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 "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 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 Resident partner. new text end

new text begin "Resident partner" means an individual, trust, or estate
partner who is a resident of Minnesota under section 290.01, subdivision 7, 7a, or 7b, for
the relevant tax period.
new text end

new text begin Subd. 18. 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. 19. 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. 20. new text end

new text begin Unrelated business taxable income. new text end

new text begin "Unrelated business taxable income"
has the meaning provided under 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 retroactively 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.382] 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) Except for when an audited partnership makes the election in subdivision 3,
or for adjustments required to be reported for federal purposes pursuant to section 6225(a)(2)
of the Internal Revenue Code, all final federal adjustments of an 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 adjustments 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 final federal
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 adjustments 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:
new text end

new text begin (i) file a completed federal adjustments report, which includes the residency information
for all individual, trust, and estate direct partners and information pertaining to all other
direct partners as prescribed by the commissioner; and
new text end

new text begin (ii) 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 the distributive share of these adjustments
made to a direct exempt partner that is not unrelated business taxable income;
new text end

new text begin (ii) exclude from final federal adjustments the distributive share of these adjustments
made to a direct partner that has filed a federal adjustments 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) assign and apportion at the partnership level using sections 290.17 to 290.20 the
total distributive share of the remaining final federal adjustments for the reviewed year
attributed to direct corporate partners and direct exempt partners; 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 (iv) allocate at the partnership level using section 290.17, subdivision 1, the total
distributive share of all final federal adjustments attributable to individual resident direct
partners for the reviewed year; 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;
new text end

new text begin (v) assign and apportion at the partnership level using sections 290.17 to 290.20 the total
distributive share of the remaining final federal adjustments attributable to nonresident
individual direct partners and direct partners who are an estate or a trust for the reviewed
year; 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;
new text end

new text begin (vi) for the total distributive share of the remaining final federal adjustments reported
to tiered partners:
new text end

new text begin (A) determine the amount of the adjustments that would be assigned using section 290.17,
subdivision 2, paragraphs (a) to (d), excluding income or gains from intangible personal
property not employed in the business of the recipient of the income or gains if the recipient
of the income or gains is a resident of this state or is a resident trust or estate under section
290.17, subdivision 2, paragraph (c), or apportioned using sections 290.17, subdivision 3,
290.191, and 290.20; and then determine the portion of the amount that would be allocated
to this state;
new text end

new text begin (B) determine the amount of the adjustments that are fully sourced to the taxpayer's state
of residency under section 290.17, subdivision 2, paragraph (e), and income or gains from
intangible personal property not employed in the business of the recipient of the income or
gains if the recipient of the income or gains is a resident of this state or is a resident trust
or estate under section 290.17, subdivision 2, paragraph (c);
new text end

new text begin (C) determine the portion of the amount determined in subitem (B) that can be established
to be properly allocable to nonresident indirect partners or other partners not subject to tax
on the adjustments; and
new text end

new text begin (D) multiply the total of the amounts determined in subitems (A) and (B) reduced by
the amount determined in subitem (C) 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 (vii) add the amounts determined in items (iii) to (vi), 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 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 (c) An audited partnership not otherwise subject to any reporting or payment obligation
to this state may not make an election under this subdivision.
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 The direct and indirect partners of an
audited partnership that are tiered partners, and all the partners of the tiered partners, that
are subject to tax under chapter 290 are subject to the reporting and payment requirements
contained in subdivision 2, and the tiered partners are entitled to make the elections provided
in subdivision 3. The tiered partners or their partners shall make required reports and
payments no later than 90 days after the time for filing and furnishing of statements to tiered
partners and their partners as established 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, an 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 and indirect partners, to the extent applicable, on the same
final federal adjustments. The direct partners or 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 direct 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 direct partners or indirect partners for
taxes they owe, using the best information available, 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 retroactively 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 2020, 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.382new 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 deleted text beginsectiondeleted text endnew text begin sectionsnew text end 289A.38, subdivisions 8 and 9new text begin, and
289A.382, subdivisions 2 and 3
new 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. 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 deleted text beginitdeleted text end in section 289A.38, subdivision 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively 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 2020, 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 beginsectiondeleted text end new text beginsections new text end289A.38, subdivision 7new text begin, and 289A.382new 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 retroactively 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 2020, 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 endnew text begin sectionsnew text end 289A.35, paragraph (b),new text begin and 289A.382, 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 retroactively 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 2020, 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 beginsectiondeleted text endnew text begin sectionsnew text end 289A.38,
subdivision 7
new text begin, and 289A.382new 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, 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 2020, 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 beginsection 289A.38, subdivision 7deleted text endnew text begin sections 289A.38 to 289A.382new 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, 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 2020, 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 beginsectiondeleted text end new text beginsections new text end289A.38new text begin
to 289A.382
new 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 retroactively 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 8

LOCAL SALES TAXES

Section 1.

Laws 2019, First Special Session chapter 6, article 6, section 27, is amended
to read:


Sec. 27. CITY OF SARTELL; LOCAL TAXES AUTHORIZED.

Subdivision 1.

Food and beverage tax authorized.

Notwithstanding Minnesota Statutes,
section 297A.99 or 477A.016, or any ordinance or other provision of law, and if approved
by voters at deleted text beginthe November 3, 2020,deleted text endnew text begin anew text end general deleted text beginelection,deleted text end or deleted text beginat adeleted text end special election held deleted text beginbefore
November 3, 2020
deleted text endnew text begin pursuant to a resolution adopted by its governing bodynew text end, the city of Sartell
may, by ordinance, impose a sales tax of up to 1-1/2 percent on the gross receipts of all food
and beverages sold by a restaurant or place of refreshment, as defined by ordinance of the
city, that is located within the city. For purposes of this section, "food and beverages" include
retail on-sale of intoxicating liquor and fermented malt beverages.

Subd. 2.

Use of proceeds from authorized taxes.

The proceeds of the taxes imposed
under subdivision 1 must be used by the city to fund capital or operational costs for new
and existing recreational facilities and related amenities within the city. Authorized expenses
include securing or paying debt service on bonds or other obligations issued to finance
construction and improvement projects.

deleted text begin Subd. 3. deleted text end

deleted text begin Termination of taxes. deleted text end

deleted text begin The tax imposed under subdivision 1 expires five years
after the tax is first imposed.
deleted text end

Subd. 4.

Collection, administration, and enforcement.

The city may enter into an
agreement with the commissioner of revenue to administer, collect, and enforce the taxes
under subdivision 1. If the commissioner agrees to collect the tax, the provisions of Minnesota
Statutes, sections 270C.171 and 297A.99, related to collection, administration, and
enforcement apply.

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 Sartell and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 2. new text beginCARLTON COUNTY; LOCAL SALES AND USE TAX 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,
sections 477A.016 and 297A.99, subdivision 2, paragraph (b), or any other law or ordinance,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, Carlton County may impose, by ordinance, a sales and use
tax of one-half of one percent for the purposes specified in subdivision 2. 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 Carlton County to pay the costs of collecting and
administering the tax and to finance up to $60,000,000 for the construction of a new law
enforcement center and jail serving a regional female offender program. Authorized costs
include related parking, design, construction, reconstruction, mechanical upgrades, and
engineering costs, as well as the associated bond costs for any bonds issued under subdivision
3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) Carlton County may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $60,000,000, plus an amount applied to the payment of costs of issuing the
bonds. The bonds may be paid from or secured by any funds available to the county,
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 county.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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) 30 years after the tax is first imposed; or (2) when the county determines that
it has received from this tax $60,000,000 to fund the project listed in subdivision 2, plus an
amount sufficient to pay costs, including interest costs, related to the issuance of the bonds
authorized in subdivision 3. Except as otherwise provided in Minnesota Statutes, section
297A.99, subdivision 3, paragraph (f), any funds remaining after payment of the allowed
costs due to timing of the termination of the tax under Minnesota Statutes, section 297A.99,
subdivision 12, shall be placed in the county's general fund. The tax imposed under
subdivision 1 may expire at an earlier time if the county 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
Carlton County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 3. new text beginCITY OF CLOQUET; 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, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Cloquet may impose by ordinance a sales and
use tax of one-half of one percent for the purposes specified in subdivision 2. 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. The tax imposed under this subdivision is in addition to any local
sales and use tax imposed under any other special law.
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 Cloquet to pay the costs of collecting and
administering the tax and the capital and administrative costs of any or all of the projects
listed in this subdivision. The amount spent on each project is limited to the amount set
forth below plus an amount equal to interest on and the costs of issuing any bonds:
new text end

new text begin (1) construction, reconstruction, expansion, or improvement related to the Pine Valley
Regional Park Project, including ski jump repairs, chalet replacement, and parking and
lighting improvements, in an amount not to exceed $2,124,700; and
new text end

new text begin (2) restoration, repair, and upgrading of the Cloquet Ice Arena in an amount not to exceed
$6,025,500.
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 Cloquet may issue bonds under Minnesota
Statutes, chapter 475, to finance up to $8,150,200 of the portion of the costs of the facilities
authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed $8,150,200 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 Cloquet, 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 Cloquet, 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) ten years
after the tax is first imposed; or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, 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 Cloquet and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 4. new text beginCITY OF CROSSLAKE; TAX 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 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Crosslake may impose, by ordinance, a sales and use tax of one-half of one
percent for the purposes specified in subdivision 2. 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 Crosslake to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $2,000,000 plus associated bonding costs for modifications to a bio-solids treatment
facility;
new text end

new text begin (2) $1,600,000 plus associated bonding costs for expansion of sewer service to the CSAH
66/Moonlight Service Area; and
new text end

new text begin (3) $2,400,000 plus associated bonding costs for expansion of sewer service to the
Daggett Lake Service Area.
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 Crosslake 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: (1) $2,000,000 for the project listed in subdivision 2, clause (1), plus an amount
applied to the payment of costs of issuing the bonds; (2) $1,600,000 for the projects listed
in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing the
bonds; and (3) $2,400,000 for the project listed in subdivision 2, clause (3), plus an amount
applied to the payment of costs of issuing the bonds. The bonds may be paid from or secured
by any funds available to the city of Crosslake, 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.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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) 15 years after the tax is first imposed; or (2) when the city council determines
that the amount received from the tax is sufficient to pay for the project costs authorized
under subdivision 2, for the projects approved by the voters as required under Minnesota
Statutes, section 297A.99, subdivision 3, plus an amount sufficient to pay costs, including
interest costs, related to the issuance of the bonds authorized in subdivision 3. Any funds
remaining after payment of the allowed costs due to timing of the termination under
Minnesota Statutes, section 297A.99, shall be placed in the city's general fund. 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 Crosslake and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 5. new text beginCITY OF EDINA; 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, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Edina may impose by ordinance a sales and use
tax of one-half of one percent for the purposes specified in subdivision 2. 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. The tax imposed under this subdivision is in addition to any local sales and
use tax imposed under any other special law.
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 Edina to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $17,700,000 plus associated bonding costs for development of Fred Richards Park
as identified in the Fred Richards Park Master Plan;
new text end

new text begin (2) $21,600,000 plus associated bonding costs for improvements to Braemar Park as
identified in the Braemar Park Master Plan; and
new text end

new text begin (3) $2,000,000 plus associated bonding costs for developing park amenities, including
recreation and open space areas, and storm water facilities, at Weber Woods Park.
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 Edina may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed: (1) $17,700,000 for the project listed in subdivision
2, clause (1), plus an amount to be applied to the payment of the costs of issuing the bonds;
(2) $21,600,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds; and (3) $2,000,000 for the project
listed in subdivision 2, clause (3), 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 Edina, 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 Edina, 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 20 years
after the tax is first imposed; or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must 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 Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 6. new text beginCITY OF FERGUS FALLS; 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, subdivision 1; or 477A.016, or any other law, ordinance, or city charter,
the city of Fergus Falls may, if approved by the voters at a general election as required under
Minnesota Statutes, section 297A.99, subdivision 3, impose, by ordinance, a sales and use
tax of one-half of one percent for the purposes specified in subdivision 2. 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. The tax imposed under this subdivision is in addition to any local sales and
use tax imposed under any other special law.
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 Fergus Falls to pay the costs of collecting
and administering the tax and for the following projects in the city, including securing and
paying debt service, on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $7,800,000 for an aquatics center; and
new text end

new text begin (2) $5,200,000 for the DeLagoon Improvement Project.
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 Fergus Falls may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed:
new text end

new text begin (1) $7,800,000 for the project listed in subdivision 2, clause (1), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds; and
new text end

new text begin (2) $5,200,000 for the project listed in subdivision 2, clause (3), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Fergus
Falls, 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 (c) The bonds are not included in computing any debt limitation applicable to the city
of Fergus Falls, 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) December
1, 2039; or (2) when the city council determines that the amount received from the tax is
sufficient to pay for the project costs authorized under subdivision 2 for projects approved
by voters as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph
(a), plus an amount sufficient to pay the costs related to issuance of any bonds authorized
under subdivision 3, including interest on the bonds. Except as otherwise provided in
Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, 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 Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 7. new text beginCITY OF FLOODWOOD; 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 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Floodwood may impose by ordinance a sales and use tax of one-half of one
percent for the purposes specified in subdivision 2. 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 Floodwood to pay the costs of collecting
and administering the tax and the capital and administrative costs of the Floodwood City-wide
Street and Infrastructure Project, up to $1,250,000.
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 Floodwood may issue bonds under Minnesota
Statutes, chapter 475, to finance the costs of the project authorized in subdivision 2 and
approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a). The aggregate principal amount of bonds issued under this subdivision
may not exceed $1,250,000, 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 Floodwood, 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 Floodwood, 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, 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 the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, 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 Floodwood and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 8. new text beginCITY OF HERMANTOWN; 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, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Hermantown may impose by ordinance a sales
and use tax of one-half of one percent for the purposes specified in subdivision 2. 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. The tax imposed under this subdivision is in addition to any local
sales and use tax imposed under any other special law.
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 Hermantown to pay the costs of collecting
and administering the tax and for up to $28,000,000 for costs related to a Community
Recreational Initiative, which includes: an addition of a second ice sheet with locker rooms
and other facilities and upgrades to the Hermantown Hockey Arena; improvements and
upgrades to Fichtner Park; and construction of the Hermantown-Proctor trail running from
the Essentia Wellness Center to the border with Proctor and eventually connecting to the
Munger Trail.
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 Hermantown may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed $28,000,000 for the project listed in subdivision
2 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 Hermantown, 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 Hermantown, 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 20 years
after being first imposed; or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for the
project approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, 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 Hermantown and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 9. new text beginITASCA COUNTY; 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, subdivision 1, or 477A.016, or any other law or ordinance and if approved
by the voters at a general election as required under Minnesota Statutes, section 297A.99,
subdivision 3, Itasca County may impose by ordinance a sales and use tax of one percent
for the purposes specified in subdivision 2. 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 Itasca County to pay the costs of collecting and
administering the tax and paying for up to $75,000,000 for new construction of or upgrades
to correctional facilities, new construction of or upgrades to court facilities including ancillary
support accommodations, and new construction of or upgrades to county offices, plus an
amount needed for securing and paying debt service on bonds issued for the project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) Itasca County may issue bonds under Minnesota Statutes,
chapter 475, to finance the costs of the facility authorized in subdivision 2. The aggregate
principal amount of bonds issued under this subdivision may not exceed $75,000,000 for
the project listed in subdivision 2, 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
county, 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 county,
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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 30 years
after the tax is first imposed; or (2) when the county board determines that the amount
received from the tax is sufficient to pay $75,000,000 in project costs authorized under
subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds
authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
the county. The tax imposed under subdivision 1 may expire at an earlier time if the county
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 Itasca
County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 10. new text beginCITY OF LITCHFIELD; 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, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Litchfield may impose by ordinance a sales and
use tax of one-half of one percent for the purposes specified in subdivision 2. 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. The tax imposed under this subdivision is in addition to any local
sales and use tax imposed under any other special law.
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 Litchfield to pay the costs of collecting and
administering the tax and for up to $10,000,000 for the cost of constructing a community
wellness/recreation center that will include a gymnasium and general fitness spaces, a
dedicated walking section, a community room, and any locker rooms and mechanical
equipment needed for future additions to the facility.
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 Litchfield may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed $10,000,000 for the project listed in subdivision 2
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 Litchfield, 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 Litchfield 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 20 years
after being first imposed; or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, 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 Litchfield and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 11. new text beginCITY OF LITTLE FALLS; 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, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Little Falls may impose by ordinance a sales and
use tax of one-half of one percent for the purposes specified in subdivision 2. 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. The tax imposed under this subdivision is in addition to any local
sales and use tax imposed under any other special law.
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 Little Falls to pay the costs of collecting
and administering the tax and for up to $17,000,000 for the cost of constructing a community
recreational facility that includes a gymnasium with an indoor track, multipurpose rooms
for meeting and educational spaces, office and storage space, and outdoor recreational
facilities for aquatic recreation with a master plan to incorporate future additions to the
facility.
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 Little Falls may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed $17,000,000 for the project listed in subdivision 2
plus an amount needed to pay capitalized interest and 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 Little Falls, 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 Little Falls, 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 30 years
after being first imposed; or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for the
project if approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, 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 Little Falls and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 12. new text beginCOUNTY OF MILLE LACS; LOCAL SALES AND USE TAX
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 477A.016, or any other law or ordinance, and if approved by the voters at a general
election as required under Minnesota Statutes, section 297A.99, subdivision 3, Mille Lacs
County may impose by ordinance a sales and use tax of one-half of one percent for the
purposes specified in subdivision 2. 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 Mille Lacs County to pay the costs of collecting and
administering the tax, and to finance up to $10,000,000 for the construction of a public
works building in Mille Lacs County, plus an amount needed for securing and paying debt
service on bonds issued to finance the project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) Mille Lacs County may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2, and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed $10,000,000, plus an amount 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 county, 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 county.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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) eight years after the tax is first imposed; or (2) when the county board
determines that the amount received from the tax is sufficient to pay for the project costs
authorized under subdivision 2 for the project approved by voters as required under
Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient
to pay the costs related to issuance of any bonds authorized under subdivision 3, including
interest on the bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (f), any funds remaining after payment of allowed costs due to the
timing of the termination of the tax under Minnesota Statutes, section 297A.99, subdivision
12, shall be placed in the general fund of the county. The tax imposed under subdivision 1
may expire at an earlier time if the county 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 Mille
Lacs County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 13. new text beginCITY OF MOORHEAD; LOCAL SALES AND USE TAX 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 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Moorhead may impose by ordinance a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. 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 Moorhead to pay the costs of collecting and
administering the tax, and to finance up to $31,590,000 for the construction of a regional
library and community center in the city of Moorhead, plus an amount needed for securing
and paying debt service on bonds issued to finance the project.
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 Moorhead may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2, and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed $31,590,000, plus an amount 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, 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.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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 the amount received from the tax is sufficient to pay for the project costs authorized
under subdivision 2 for the project approved by voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay the costs
related to issuance of any bonds authorized under subdivision 3, including interest on the
bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision
3, paragraph (f), any funds remaining after payment of allowed costs due to the timing of
the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12, 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 Moorhead and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 14. new text beginCITY OF OAKDALE; TAX 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 477A.016, or any other ordinance or city charter, and if approved by the voters at
a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Oakdale may impose, by ordinance, a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. 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 Oakdale to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $22,000,000 plus associated bonding costs for construction of a new public works
facility; and
new text end

new text begin (2) $15,000,000 plus associated bonding costs for construction and rehabilitation, and
associated building costs of the police department facility.
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 Oakdale 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: (1) $22,000,000 for the project listed in subdivision 2, clause (1), plus an amount
applied to the payment of costs of issuing the bonds; and (2) $15,000,000 for the projects
listed in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing
the bonds. The bonds may be paid from or secured by any funds available to the city of
Oakdale, 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.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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 the city has received from this tax $37,000,000 to fund the projects listed in subdivision
2 plus an amount sufficient to pay costs related to the issuance of the bonds authorized in
subdivision 3. Except as otherwise provided under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (f), any funds remaining after payment of the allowed costs due
to timing of the termination under Minnesota Statutes, section 297A.99, shall be placed in
the city's general fund. 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 Oakdale and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 15. new text beginCITY OF ST. CLOUD; TAX 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 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of St. Cloud may impose by ordinance a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. 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 St. Cloud to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $21,600,000 plus associated bonding costs for multimodal transportation and utility
improvements to East St. Germain Street, Lincoln Avenue, and 4th Street SE;
new text end

new text begin (2) $12,500,000 plus associated bonding costs for multimodal transportation and utility
improvements on Heatherwood Road from Clearwater Road to Opportunity Drive;
new text end

new text begin (3) $23,000,000 plus associated bonding costs for multimodal transportation and utility
improvements for a primary gateway for regional access to St. Cloud State University;
new text end

new text begin (4) $24,000,000 plus associated bonding costs for multimodal transportation and utility
improvements for a regional gateway to St. Cloud's central business district; and
new text end

new text begin (5) $21,100,000 plus associated bonding costs for expansion and improvement of St.
Cloud's Municipal Athletic Complex.
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 St. Cloud 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: (1) $21,600,000 for the project listed in subdivision 2, clause (1), plus an amount
applied to the payment of costs of issuing the bonds; (2) $12,500,000 for the projects listed
in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing the
bonds; (3) $23,000,000 for the project listed in subdivision 2, clause (3), plus an amount
applied to the payment of costs of issuing the bonds; (4) $24,000,000 for the project listed
in subdivision 2, clause (4), plus an amount applied to the payment of costs of issuing the
bonds; and (5) $21,100,000 for the project listed in subdivision 2, clause (5), plus an amount
applied to the payment of costs of issuing the bonds. The bonds may be paid from or secured
by any funds available to the city of St. Cloud, 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.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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) 20 years after the tax is first imposed; or (2) when the city council determines
that the amount received from the tax is sufficient to pay for the project costs authorized
under subdivision 2, for the projects approved by the voters as required under Minnesota
Statutes, section 297A.99, subdivision 3, plus an amount sufficient to pay costs, including
interest costs, related to the issuance of the bonds authorized in subdivision 3. Any funds
remaining after payment of the allowed costs due to timing of the termination under
Minnesota Statutes, section 297A.99, shall be placed in the city's general fund. 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 St. Cloud and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 16. new text beginCITY OF ST. PETER; 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, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of St. Peter may impose by ordinance a sales and
use tax of one-half of one percent for the purposes specified in subdivision 2. 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 St. Peter to pay the costs of collecting and
administering the tax and paying for up to $9,121,000 for construction of a new fire station,
plus an amount needed for securing and paying debt service on bonds issued to finance the
project.
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 St. Peter may issue bonds under Minnesota
Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The
aggregate principal amount of bonds issued under this subdivision may not exceed $9,121,000
for the project listed in subdivision 2, 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 St. Peter, 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 St. Peter; 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 40 years
after the tax is first imposed; or (2) when the city council determines that the amount received
from the tax is sufficient to pay for $9,121,000 in project costs authorized under subdivision
2, plus an amount sufficient to pay the costs related to issuance of any bonds authorized
under subdivision 3, including interest on the bonds. Except as otherwise provided in
Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, 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 St. Peter and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 17. new text beginCITY OF STAPLES; LOCAL SALES AND USE TAX 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 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Staples may impose by ordinance a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. 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 Staples to pay the costs of collecting and
administering the tax, and to finance up to $1,600,000 for the renovation of the Staples
Community Center, plus an amount needed for securing and paying debt service on bonds
issued to finance the project.
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 Staples may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2, and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed $1,600,000, plus an amount 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, 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.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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 the amount received from the tax is sufficient to pay for the project costs authorized
under subdivision 2 for the project approved by voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay the costs
related to issuance of any bonds authorized under subdivision 3, including interest on the
bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision
3, paragraph (f), any funds remaining after payment of allowed costs due to the timing of
the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12, 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 Staples and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 18. new text beginCITY OF WADENA; TAX 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 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Wadena may impose by ordinance a sales and use tax of one-quarter of one
percent for the purposes specified in subdivision 2. 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 Wadena to pay the costs of collecting and
administering the tax and to finance up to $3,000,000, plus associated bonding costs including
securing and paying debt service on bonds issued, for the Wadena Library Rehabilitation
Project.
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 Wadena may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $3,000,000, plus an amount applied to the payment of costs of issuing the bonds.
The bonds may be paid from or secured by any funds available to the city of Wadena,
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.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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) 20 years after the tax is first imposed; or (2) when the city council determines
that the amount received from the tax is sufficient to pay for the project costs authorized
under subdivision 2, and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, plus an amount sufficient to pay costs, including interest
costs, related to the issuance of the bonds authorized in subdivision 3. Any funds remaining
after payment of the allowed costs due to timing of the termination under Minnesota Statutes,
section 297A.99, shall be placed in the city's general fund. 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 Wadena and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 19. new text beginCITY OF WAITE PARK; 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, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Waite Park may impose by ordinance a sales
and use tax of one-half of one percent for the purposes specified in subdivision 2. 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. The tax imposed under this subdivision is in addition to any local
sales and use tax imposed under any other special law.
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 Waite Park to pay the costs of collecting
and administering the tax and for the following projects in the city, including securing and
paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) up to $10,000,000 plus associated bonding costs for the 10th Avenue regional corridor
project;
new text end

new text begin (2) up to $7,500,000 plus associated bonding costs for regional trail connections; and
new text end

new text begin (3) up to $20,000,000 plus associated bonding costs for construction and equipping of
a public safety facility.
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 Waite Park may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed:
new text end

new text begin (1) $10,000,000 for the project listed in subdivision 2, clause (1), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds;
new text end

new text begin (2) $7,500,000 for the project listed in subdivision 2, clause (2), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds; and
new text end

new text begin (3) $20,000,000 for the project listed in subdivision 2, clause (3), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin The bonds may be paid from or secured by any funds available to the city of Waite Park,
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 Waite Park, 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, 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 the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, 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 Waite Park and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 20. new text beginCITY OF WARREN; LOCAL SALES AND USE TAX 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 477A.016, or any other law or ordinance, and if approved by the voters at a general
election as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of
Warren may impose by ordinance a sales and use tax of one-half of one percent for the
purposes specified in subdivision 2. 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. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under current
law.
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 Warren to pay the costs of collecting and
administering the tax, and to finance up to $1,600,000 for the construction of a new child
care facility. Authorized costs include related parking, design, and construction costs, as
well as payment of debt service on bonds issued to finance the project listed in this
subdivision.
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 Warren may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2, and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed $1,600,000, plus an amount needed to pay capitalized
interest and 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, 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.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 20 years
after the tax is first imposed; or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for the
project approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of allowed costs due to the timing of the termination of
the tax under Minnesota Statutes, section 297A.99, subdivision 12, 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 Warren and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

ARTICLE 9

MISCELLANEOUS

Section 1.

Minnesota Statutes 2020, section 270A.04, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Private nonprofit hospital. new text end

new text begin A private nonprofit hospital that leases its building
from the county or city in which it is located must annually provide the commissioner with
a copy of the lease agreement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2020, section 270B.13, is amended by adding a subdivision to
read:


new text begin Subd. 3. new text end

new text begin Background check; access to federal tax information. new text end

new text begin An individual
performing services for an independent contractor or a vendor under subdivision 1 who has
or will have access to federal tax information is subject to the requirements of section
299C.76.
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.

new text begin [270C.075] PRIVATE LETTER RULINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin By January 1, 2022, the commissioner shall, by
administrative rule adopted under chapter 14, establish and implement a program for issuing
private letter rulings to taxpayers to provide guidance as to how the commissioner will apply
Minnesota tax law to a specific transaction or proposed transaction, arrangement, or other
fact situation of the applying taxpayer. The commissioner must include in each ruling an
explanation of the reasoning for the determination. In establishing the terms of the program,
the commissioner may provide that rulings will not be issued in specified subject areas, for
categories of transactions, or under specified provisions of law, if the commissioner
determines doing so is in the best interests of the state and sound tax administration. The
program must include a process for the representative of a taxpayer to apply for a private
letter ruling and to communicate with the commissioner regarding the requested ruling.
new text end

new text begin Subd. 2. new text end

new text begin Application procedure; fees. new text end

new text begin (a) The commissioner shall establish an
application procedure and forms for a taxpayer or the taxpayer's appointed representative
to request a private letter ruling. The commissioner may require the taxpayer to provide any
supporting factual information and certifications that the commissioner determines necessary
or appropriate to issue a private letter ruling. The requirements may vary based on the type
of ruling requested.
new text end

new text begin (b) The commissioner may, in the administrative rule, establish a fee schedule to recover
the department's actual cost of preparing private letter rulings. The maximum fee per private
letter ruling is $........ The commissioner may require the applicant to pay the required fee
for a private letter ruling before the application is considered. If the administrative rule
provides for payment of a fee as a condition for providing a private letter ruling, the rule
must provide a fee structure that varies the amount of the fee by the complexity of the request
or the number and type of issues or both.
new text end

new text begin (c) If the commissioner fails to issue a ruling to the taxpayer within 90 days after the
taxpayer's filing of a completed application, the commissioner must refund the application
fee to the taxpayer; however, the commissioner must issue a private letter ruling unless the
taxpayer withdraws the request.
new text end

new text begin (d) Any fees collected under this section must be deposited in the Revenue Department
service and recovery special revenue fund established under section 270C.15, and are
appropriated to the commissioner to offset the cost of issuing private letter rulings and
related administrative costs.
new text end

new text begin Subd. 3. new text end

new text begin Effect. new text end

new text begin (a) A private letter ruling is binding on the commissioner with respect
to the taxpayer to whom the ruling is issued if:
new text end

new text begin (1) there was no misstatement or omission of material facts in the application or other
information provided to the commissioner;
new text end

new text begin (2) the facts that subsequently developed were not materially different from the facts
upon which the ruling was based;
new text end

new text begin (3) the applicable statute, administrative rule, federal law referenced by state law, or
other relevant law has not changed; and
new text end

new text begin (4) the taxpayer acted in good faith in applying for and relying on the ruling.
new text end

new text begin (b) Private letter rulings have no precedential effect and may not be relied upon by a
taxpayer other than as provided in paragraph (a).
new text end

new text begin Subd. 4. new text end

new text begin Public access. new text end

new text begin The commissioner shall make private letter rulings issued under
this section available to the public on the department's website. The commissioner must
organize the private letter rulings by tax type and must make them available in a searchable
format. The published rulings must redact any information that would permit identification
of the requesting taxpayer.
new text end

new text begin Subd. 5. new text end

new text begin Legislative report. new text end

new text begin (a) By January 31 of each odd-numbered year, the
commissioner shall report in writing to the legislature the following information for the
immediately preceding two calendar years:
new text end

new text begin (1) the number of applications for private letter rulings;
new text end

new text begin (2) the number of private letter rulings issued, including the number issued within the
90-day time period under subdivision 2, paragraph (c);
new text end

new text begin (3) the amount of application fees refunded by tax type;
new text end

new text begin (4) the tax types for which rulings were requested;
new text end

new text begin (5) the types and characteristics of taxpayers applying for rulings; and
new text end

new text begin (6) any other information that the commissioner considers relevant to legislative oversight
of the private letter ruling program.
new text end

new text begin (b) The report must be filed as provided in section 3.195, and copies must be provided
to the chairs and ranking minority members of the committees of the house of representatives
and the senate with jurisdiction over taxes and appropriations to the Department of Revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
that the first legislative report under subdivision 5 is due January 31, 2024.
new text end

Sec. 4.

Minnesota Statutes 2020, section 298.28, subdivision 5, is amended to read:


Subd. 5.

Counties.

(a) 21.05 cents per taxable ton deleted text beginfor distributions in 2015 through 2023,
and 26.05 cents per taxable ton for distributions beginning in 2024,
deleted text end is allocated to counties
to be distributed, based upon certification by the commissioner of revenue, under paragraphs
(b) to (d).

(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite
is mined or quarried or in which the concentrate is produced, less any amount which is to
be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision
2 is the basis for the distribution.

(c) 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b)
shall be paid to a county that received a distribution under this section in 2000 because there
was located in the county an electric power plant owned by and providing the primary source
of power for a taxpayer mining and concentrating taconite in a different county.

(d) 10.525 cents per taxable ton deleted text beginfor distributions in 2015 through 2023, and 15.525 cents
per taxable ton for distributions beginning in 2024,
deleted text end shall be paid to the county from which
the taconite was mined, quarried or concentrated to be deposited in the county road and
bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those
processes are carried on in more than one county, the commissioner shall follow the
apportionment formula prescribed in subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2020, section 298.28, subdivision 9b, is amended to read:


Subd. 9b.

Taconite environmental fund.

Five cents per ton new text beginthrough distributions in
2023
new text endmust be paid to the taconite environmental fund for use under section 298.2961,
subdivision 4
.new text begin Beginning with distributions in 2024, ten cents per ton must be paid to the
taconite environmental fund of which five cents per ton must be used as provided under
section 298.2961, subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

new text begin [299C.76] BACKGROUND CHECK; ACCESS TO FEDERAL TAX
INFORMATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following definitions
apply.
new text end

new text begin (b) "Federal tax information" means federal tax returns and return information or
information derived or created from federal tax returns, in possession of or control by the
requesting agency, that is covered by the safeguarding provisions of section 6103(p)(4) of
the Internal Revenue Code.
new text end

new text begin (c) "IRS Publication 1075" means Internal Revenue Service Publication 1075 that
provides guidance and requirements for the protection and confidentiality of federal tax
information as required in section 6103(p)(4) of the Internal Revenue Code.
new text end

new text begin (d) "National criminal history record information" means the Federal Bureau of
Investigation identification records as defined in Code of Federal Regulations, title 28,
section 20.3(d).
new text end

new text begin (e) "Requesting agency" means the Department of Revenue, Department of Employment
and Economic Development, Department of Human Services, board of directors of MNsure,
the Office of MN.IT Services, and counties.
new text end

new text begin Subd. 2. new text end

new text begin National criminal history record information check. new text end

new text begin As required by IRS
Publication 1075, a requesting agency shall require fingerprints for a national criminal
history record information check from the following individuals who have or will have
access to federal tax information:
new text end

new text begin (1) a current or prospective permanent or temporary employee of the requesting agency;
new text end

new text begin (2) an independent contractor or vendor of the requesting agency;
new text end

new text begin (3) an employee or agent of an independent contractor or vendor of the requesting agency;
or
new text end

new text begin (4) any other individual authorized to access federal tax information by the requesting
agency.
new text end

new text begin Subd. 3. new text end

new text begin Fingerprint submission and written statement of understanding. new text end

new text begin An
individual subject to this section must provide fingerprints and a written statement of
understanding that the fingerprints will be used for a background check to the requesting
agency. The requesting agency must submit the fingerprints and written statement of
understanding, along with the processing fees, to the superintendent of the Bureau of Criminal
Apprehension. The fingerprints must only be used for the purposes described in this section.
new text end

new text begin Subd. 4. new text end

new text begin Bureau of Criminal Apprehension requirements. new text end

new text begin (a) After the superintendent
of the Bureau of Criminal Apprehension notifies requesting agencies that the United States
Attorney General has approved the request for submission under Public Law 92-544, a
requesting agency may submit information under subdivision 3.
new text end

new text begin (b) Upon receipt of the information under subdivision 3, the superintendent of the Bureau
of Criminal Apprehension must:
new text end

new text begin (1) perform a state criminal history record information search;
new text end

new text begin (2) exchange the fingerprints to the Federal Bureau of Investigation to facilitate a search
of the national criminal history record information;
new text end

new text begin (3) compile the results of the state and national criminal history record information
searches; and
new text end

new text begin (4) provide the results to the requesting agency.
new text end

new text begin Subd. 5. new text end

new text begin Classification of data. new text end

new text begin (a) All data collected, created, received, maintained, or
disseminated by the requesting agency under this section is classified as private data on
individuals as defined in section 13.02, subdivision 12.
new text end

new text begin (b) Notwithstanding any law to the contrary, a requesting agency must not further
disseminate the results received under subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7. new text begin2008 DISTRIBUTION TRANSFER; CITY OF BIWABIK STREET AND
HIGHWAY IMPROVEMENTS.
new text end

new text begin Notwithstanding any law to the contrary, by July 1, 2021, St. Louis County shall transfer
$1,500,000 from the appropriation in Laws 2006, chapter 259, article 12, section 12,
subdivision 4, to the city of Biwabik for deposit in its general fund account to be used for
the preservation and reconstruction of existing streets and highways in the city of Biwabik
or the construction of new streets in the city of Biwabik. Any remaining unspent money
from the appropriation in Laws 2006, chapter 259, article 12, section 12, subdivision 4,
shall be retained by St. Louis County for road improvements to County Road 138, north of
Giants Ridge.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8. new text beginCONDITIONAL REPEALER.
new text end

new text begin (a) The commissioner of management and budget shall report within 30 days that the
bonds under Minnesota Statutes, section 16A.965, have been redeemed or defeased to the
revisor of statutes.
new text end

new text begin (b) Minnesota Statutes, section 16A.727, is repealed 60 days after the commissioner of
management and budget certifies that the bonds under Minnesota Statutes, section 16A.965,
have been redeemed or defeased.
new text end

APPENDIX

Repealed Minnesota Statutes: UEH0991-1

469.055 POWERS AND DUTIES.

Subd. 7.

Sale of realty.

The authority may sell, convey, and exchange any real or personal property owned or held by it in any manner and on any terms it wishes. Real property owned by the authority must not be sold, be exchanged, or have its title transferred without approval of two-thirds of the commissioners. All commissioners must have ten days' written notice of a regular or special meeting at which a sale, conveyance, exchange, or transfer of property is to be voted on. The notice must contain a complete description of the affected real estate. The resolution authorizing the real estate transaction is not effective unless a quorum is present.