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Capital IconMinnesota Legislature

HF 2323

3rd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:02am

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 1.36 1.37 1.38 1.39 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 2.31 2.32 2.33 2.34 2.35 2.36 2.37 2.38 2.39 2.40 2.41 2.42 2.43 2.44 2.45 2.46 2.47 2.48 2.49 2.50 2.51 2.52 2.53 2.54 2.55 2.56 2.57 2.58 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 3.33 3.34 3.35 3.36 3.37 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19
4.20 4.21
4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 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 5.35 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 6.33 6.34 6.35 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 7.33
7.34 7.35 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 8.35 8.36 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 9.36 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11
10.12 10.13 10.14
10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 10.35 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 11.35 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 12.33 12.34 12.35 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 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 14.32 14.33 14.34 14.35 14.36 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 15.35 15.36 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 16.33
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 17.34 17.35 17.36 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 18.32 18.33 18.34 18.35 18.36 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
19.32 19.33 19.34
19.35 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 21.32 21.33 21.34 21.35 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 22.33 22.34 22.35 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22
23.23
23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 23.35 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 24.34 24.35 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 26.30
26.31 26.32
26.33 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35 27.36 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9
28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18
28.19 28.20
28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 29.1 29.2 29.3 29.4 29.5
29.6 29.7
29.8 29.9 29.10 29.11
29.12 29.13
29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14
30.15 30.16
30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29
31.30 31.31
31.32 31.33 31.34 31.35 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 32.32 32.33 32.34 32.35 32.36 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29
33.30 33.31 33.32
33.33 33.34 33.35 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 34.31 34.32 34.33 34.34 34.35 34.36 34.37 34.38 34.39 34.40
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 35.34 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 36.32 36.33 36.34 36.35 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 37.33 37.34 37.35 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 38.35 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 39.36 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 40.34 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 41.35 41.36 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 42.33 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 43.34 43.35 43.36
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 44.34 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 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
46.30 46.31
46.32 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 47.35 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 49.32
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
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
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 52.32 52.33 52.34
52.35
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 53.33 53.34 53.35 53.36 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 54.33 54.34 54.35 54.36 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 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 56.35 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 58.32 58.33 58.34 58.35 58.36 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 59.35 59.36 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20
60.21
60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 60.35 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 61.35 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10
62.11
62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 62.35 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 63.35 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 64.33 64.34 64.35 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22
65.23
65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 65.35 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15
66.16
66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15
67.16
67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34 67.35 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 68.35 69.1 69.2 69.3 69.4 69.5
69.6 69.7
69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 70.34 70.35 70.36 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 71.34 71.35 71.36 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10
72.11
72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27
72.28 72.29
72.30 72.31 72.32 72.33 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21
73.22
73.23 73.24 73.25
73.26 73.27 73.28
73.29 73.30 73.31
73.32 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 74.34 74.35 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 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28
76.29 76.30 76.31 76.32 76.33 76.34 76.35 77.1 77.2 77.3
77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14
77.15 77.16
77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 78.1 78.2 78.3 78.4 78.5 78.6
78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31
78.32 78.33 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 79.33 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 80.33 80.34 80.35 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8
81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 81.34 81.35 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 82.34 82.35 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 83.35 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 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 85.35 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 86.32 86.33 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 87.34 87.35 87.36 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 88.33 88.34 88.35 88.36 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 89.34 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 90.32 90.33 90.34 90.35 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 91.35 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 92.35 92.36 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 93.34 93.35 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13
94.14 94.15
94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29
94.30 94.31
94.32 95.1 95.2 95.3 95.4 95.5
95.6 95.7
95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25
95.26 95.27
95.28 95.29 95.30 95.31 95.32 95.33 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17
96.18 96.19
96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33 96.34 96.35 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 97.33 97.34 97.35 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
99.33 99.34
99.35 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 100.34 101.1 101.2 101.3
101.4 101.5
101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16
101.17 101.18
101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26
101.27 101.28
101.29 101.30 101.31 101.32 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 102.35 103.1 103.2 103.3 103.4
103.5
103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17
103.18
103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29
103.30
103.31 103.32 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24
104.25 104.26
104.27 104.28 104.29 104.30 104.31 104.32 104.33 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34 105.35 105.36 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 106.35 106.36 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33 107.34 107.35 107.36 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12
108.13 108.14
108.15 108.16 108.17 108.18
108.19 108.20
108.21 108.22 108.23 108.24 108.25 108.26 108.27
108.28 108.29
108.30 108.31 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27
109.28 109.29 109.30
109.31 109.32 109.33 109.34 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 110.34 110.35 110.36 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34 111.35 111.36 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31
112.32
112.33 112.34 112.35 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33 113.34 113.35 113.36 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 114.34 114.35 114.36 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 115.33 115.34 115.35 115.36 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32 116.33 116.34 116.35 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 117.33 117.34 117.35 117.36 118.1 118.2 118.3 118.4 118.5 118.6 118.7
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
119.27 119.28 119.29 119.30 119.31 119.32 119.33 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23
120.24
120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 120.33 120.34
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
123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 123.34 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12
124.13
124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 124.34 124.35 125.1 125.2
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
125.26 125.27 125.28 125.29 125.30 125.31 125.32 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10
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
126.24 126.25 126.26 126.27 126.28 126.29 126.30 127.1 127.2 127.3 127.4 127.5 127.6 127.7
127.8
127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 127.33 127.34 127.35 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30
128.31
128.32 128.33 128.34 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 129.33 129.34 129.35 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 130.33 130.34 130.35 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30
131.31
131.32 131.33 131.34 131.35 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26
132.27 132.28
132.29 132.30 132.31 132.32 132.33 132.34 132.35 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14
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
135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23
135.24 135.25
135.26 135.27 135.28 135.29 135.30 135.31 135.32 136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8
136.9 136.10
136.11 136.12 136.13 136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 136.32 136.33 136.34 136.35 136.36 136.37 136.38 136.39 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30
137.31 137.32
137.33 137.34 137.35 137.36 137.37 137.38 137.39 137.40 137.41 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33 138.34 138.35 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 139.31 139.32 139.33 139.34 139.35 140.1 140.2 140.3 140.4 140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 140.33 140.34 140.35 140.36 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17 141.18 141.19 141.20 141.21 141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 141.34 141.35 141.36 142.1 142.2 142.3 142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12 142.13 142.14 142.15 142.16 142.17 142.18 142.19 142.20 142.21 142.22 142.23 142.24 142.25 142.26 142.27 142.28 142.29 142.30 142.31 142.32 142.33 142.34 142.35 142.36 143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9
143.10 143.11
143.12 143.13 143.14 143.15 143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31 143.32 143.33 143.34 143.35 144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10 144.11
144.12
144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24
144.25
144.26 144.27 144.28 144.29 144.30 144.31 144.32 145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14
145.15
145.16 145.17 145.18 145.19 145.20 145.21 145.22
145.23
145.24 145.25 145.26 145.27 145.28 145.29
145.30
145.31 145.32
146.1
146.2 146.3
146.4 146.5 146.6
146.7 146.8 146.9 146.10 146.11 146.12 146.13 146.14 146.15 146.16 146.17 146.18 146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29
146.30 146.31 146.32 146.33 147.1 147.2 147.3 147.4 147.5 147.6 147.7 147.8 147.9 147.10
147.11 147.12 147.13 147.14 147.15 147.16 147.17 147.18 147.19 147.20 147.21 147.22 147.23 147.24 147.25 147.26 147.27 147.28 147.29 147.30 147.31 147.32 147.33 147.34 148.1 148.2 148.3 148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15 148.16 148.17 148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30 148.31 148.32 148.33 148.34 149.1 149.2 149.3 149.4 149.5 149.6 149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17
149.18 149.19 149.20 149.21 149.22 149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31 149.32 149.33 149.34 150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8 150.9
150.10 150.11 150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25 150.26 150.27 150.28 150.29 150.30 150.31 150.32 150.33 150.34 150.35 151.1 151.2 151.3 151.4 151.5 151.6 151.7 151.8 151.9 151.10 151.11 151.12 151.13 151.14 151.15 151.16 151.17 151.18 151.19 151.20 151.21
151.22 151.23 151.24 151.25 151.26 151.27 151.28 151.29 151.30 151.31 151.32 151.33 152.1 152.2 152.3 152.4 152.5 152.6 152.7 152.8 152.9 152.10 152.11 152.12 152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22 152.23 152.24 152.25 152.26 152.27
152.28 152.29 152.30 152.31 152.32 152.33 152.34 153.1 153.2 153.3 153.4 153.5
153.6 153.7
153.8 153.9
153.10 153.11 153.12
153.13 153.14
153.15 153.16 153.17 153.18 153.19 153.20
153.21
153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30
154.1
154.2 154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18
154.19 154.20 154.21 154.22 154.23 154.24
154.25 154.26 154.27 154.28 154.29 154.30 154.31 154.32 154.33 154.34
155.1 155.2 155.3 155.4 155.5 155.6
155.7 155.8 155.9 155.10 155.11 155.12 155.13 155.14 155.15 155.16 155.17 155.18 155.19 155.20 155.21 155.22 155.23
155.24
155.25 155.26 155.27 155.28 155.29 155.30 155.31 155.32 155.33 156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20
156.21
156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 156.32 156.33 156.34 156.35 156.36 156.37 156.38 156.39 157.1 157.2 157.3 157.4 157.5
157.6
157.7 157.8 157.9 157.10 157.11 157.12 157.13 157.14 157.15 157.16 157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 157.32 157.33
157.34
158.1 158.2 158.3 158.4 158.5
158.6
158.7 158.8
158.9 158.10 158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25
158.26 158.27
158.28 158.29 158.30 158.31 158.32 158.33 159.1 159.2 159.3 159.4 159.5 159.6 159.7 159.8 159.9
159.10 159.11
159.12 159.13 159.14 159.15 159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28
159.29 159.30
159.31 159.32 160.1 160.2 160.3 160.4 160.5 160.6 160.7 160.8 160.9 160.10 160.11 160.12
160.13
160.14 160.15 160.16 160.17 160.18 160.19 160.20 160.21 160.22 160.23 160.24 160.25 160.26 160.27 160.28 160.29 160.30 160.31 160.32 160.33 160.34 160.35 161.1 161.2
161.3
161.4 161.5 161.6 161.7 161.8 161.9 161.10 161.11 161.12 161.13 161.14 161.15 161.16 161.17 161.18 161.19 161.20 161.21 161.22 161.23 161.24 161.25 161.26 161.27 161.28 161.29 161.30 161.31 161.32 161.33
162.1 162.2
162.3 162.4 162.5 162.6 162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24 162.25 162.26 162.27 162.28 162.29 162.30 162.31 162.32 162.33 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20 163.21 163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31 163.32 163.33 163.34 163.35 164.1 164.2 164.3 164.4 164.5 164.6 164.7 164.8 164.9 164.10 164.11 164.12 164.13 164.14 164.15 164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 164.32 164.33 164.34 164.35 164.36 165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19
165.20 165.21
165.22 165.23 165.24 165.25 165.26 165.27 165.28 165.29 165.30 165.31 165.32 165.33 165.34 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30 166.31 166.32 166.33 166.34 166.35 167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19 167.20
167.21 167.22
167.23 167.24 167.25 167.26
167.27 167.28
167.29 167.30 167.31 167.32 167.33 168.1 168.2
168.3 168.4
168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17
168.18 168.19
168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 168.31 168.32 169.1 169.2 169.3 169.4 169.5 169.6 169.7 169.8 169.9 169.10 169.11 169.12
169.13 169.14
169.15 169.16 169.17 169.18 169.19 169.20
169.21 169.22
169.23 169.24 169.25 169.26 169.27 169.28 169.29 169.30 169.31 169.32
170.1 170.2
170.3 170.4 170.5 170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13 170.14 170.15 170.16 170.17 170.18 170.19 170.20 170.21 170.22 170.23 170.24 170.25 170.26 170.27 170.28 170.29 170.30 170.31 170.32 170.33 171.1 171.2 171.3 171.4 171.5 171.6 171.7 171.8 171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20 171.21 171.22 171.23
171.24 171.25
171.26 171.27 171.28 171.29 171.30 171.31 171.32 171.33 171.34 171.35
172.1 172.2
172.3 172.4 172.5 172.6 172.7 172.8 172.9 172.10 172.11 172.12 172.13 172.14 172.15
172.16 172.17
172.18 172.19 172.20 172.21 172.22 172.23 172.24 172.25 172.26 172.27
172.28 172.29
172.30 172.31 173.1 173.2 173.3 173.4 173.5 173.6 173.7 173.8 173.9 173.10 173.11
173.12 173.13
173.14 173.15 173.16 173.17 173.18
173.19 173.20
173.21 173.22 173.23 173.24 173.25 173.26 173.27 173.28
173.29 173.30
173.31 173.32 174.1 174.2 174.3 174.4 174.5
174.6 174.7
174.8 174.9 174.10 174.11 174.12 174.13 174.14 174.15
174.16 174.17 174.18 174.19 174.20 174.21 174.22 174.23 174.24 174.25 174.26 174.27 174.28 174.29 174.30 174.31 174.32 175.1 175.2 175.3 175.4 175.5 175.6 175.7 175.8 175.9 175.10 175.11 175.12 175.13 175.14 175.15 175.16 175.17
175.18 175.19
175.20 175.21 175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30 175.31 175.32 175.33 175.34 175.35
176.1 176.2
176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18 176.19 176.20 176.21
176.22 176.23
176.24 176.25 176.26 176.27 176.28 176.29 176.30 176.31 176.32 176.33 176.34 177.1 177.2 177.3 177.4 177.5 177.6 177.7 177.8 177.9 177.10 177.11 177.12
177.13 177.14
177.15 177.16 177.17 177.18 177.19 177.20 177.21 177.22 177.23 177.24 177.25 177.26 177.27 177.28 177.29 177.30 177.31 177.32 177.33 177.34 178.1 178.2 178.3
178.4 178.5
178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13
178.14 178.15
178.16 178.17 178.18 178.19 178.20 178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29 178.30 178.31 178.32 178.33 179.1 179.2 179.3 179.4 179.5 179.6 179.7 179.8 179.9
179.10 179.11 179.12 179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23 179.24 179.25
179.26 179.27
179.28 179.29 179.30 179.31 179.32 180.1 180.2 180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13 180.14 180.15 180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 180.30 180.31 180.32 180.33 180.34 180.35 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12 181.13 181.14 181.15 181.16 181.17 181.18
181.19
181.20 181.21 181.22 181.23
181.24 181.25
181.26 181.27 181.28 181.29 181.30 181.31 181.32 181.33
182.1 182.2
182.3 182.4 182.5 182.6 182.7 182.8 182.9 182.10 182.11 182.12 182.13 182.14 182.15 182.16 182.17 182.18 182.19 182.20 182.21 182.22 182.23 182.24 182.25 182.26 182.27 182.28 182.29 182.30 182.31
182.32
182.33 183.1 183.2 183.3 183.4 183.5
183.6 183.7 183.8
183.9 183.10 183.11 183.12 183.13 183.14 183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22 183.23 183.24 183.25 183.26 183.27 183.28 183.29 183.30 183.31 183.32 183.33
184.1 184.2 184.3 184.4 184.5
184.6 184.7 184.8 184.9 184.10 184.11 184.12 184.13 184.14 184.15 184.16 184.17 184.18 184.19 184.20 184.21 184.22 184.23
184.24 184.25 184.26
184.27 184.28 184.29 184.30 184.31 184.32 184.33 184.34 185.1 185.2 185.3 185.4 185.5 185.6 185.7 185.8 185.9 185.10 185.11 185.12 185.13 185.14 185.15 185.16 185.17 185.18 185.19 185.20 185.21 185.22 185.23 185.24 185.25 185.26 185.27 185.28 185.29 185.30 185.31 185.32 185.33 185.34 185.35
186.1 186.2 186.3
186.4 186.5 186.6 186.7 186.8 186.9
186.10 186.11 186.12
186.13 186.14 186.15 186.16 186.17 186.18 186.19 186.20 186.21 186.22 186.23 186.24 186.25 186.26 186.27 186.28 186.29 186.30 186.31 186.32 187.1 187.2 187.3 187.4 187.5 187.6 187.7 187.8 187.9 187.10 187.11 187.12 187.13 187.14 187.15 187.16 187.17
187.18 187.19 187.20
187.21 187.22 187.23 187.24 187.25 187.26 187.27 187.28 187.29 187.30
187.31 187.32 187.33
188.1 188.2 188.3 188.4 188.5 188.6 188.7 188.8 188.9 188.10 188.11 188.12 188.13 188.14 188.15 188.16 188.17 188.18 188.19 188.20 188.21 188.22 188.23 188.24 188.25 188.26 188.27 188.28
188.29 188.30 188.31
188.32 188.33 188.34 188.35 189.1 189.2 189.3 189.4 189.5 189.6 189.7 189.8 189.9 189.10 189.11 189.12 189.13
189.14 189.15 189.16
189.17 189.18 189.19 189.20 189.21 189.22 189.23 189.24 189.25
189.26 189.27 189.28
189.29 189.30 189.31 189.32 189.33 190.1 190.2 190.3 190.4 190.5 190.6 190.7 190.8 190.9 190.10 190.11 190.12 190.13 190.14 190.15 190.16 190.17 190.18 190.19
190.20
190.21 190.22 190.23 190.24 190.25 190.26 190.27 190.28 190.29 190.30 190.31 190.32 190.33 190.34 190.35 191.1 191.2 191.3 191.4 191.5 191.6 191.7 191.8
191.9 191.10 191.11 191.12
191.13 191.14
191.15 191.16
191.17 191.18
191.19 191.20 191.21 191.22 191.23 191.24 191.25 191.26 191.27 191.28 191.29 191.30
191.31 191.32
192.1 192.2 192.3 192.4 192.5 192.6 192.7 192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19 192.20 192.21 192.22 192.23 192.24 192.25 192.26 192.27 192.28 192.29 192.30 192.31 192.32 192.33 192.34 192.35 192.36 193.1 193.2 193.3 193.4 193.5 193.6 193.7 193.8
193.9 193.10
193.11 193.12 193.13 193.14 193.15 193.16 193.17 193.18 193.19 193.20 193.21 193.22 193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 193.32 193.33 193.34 193.35 194.1 194.2 194.3 194.4 194.5 194.6 194.7 194.8 194.9 194.10 194.11 194.12 194.13 194.14 194.15 194.16 194.17 194.18 194.19 194.20 194.21 194.22 194.23 194.24 194.25 194.26 194.27 194.28 194.29 194.30 194.31 194.32 194.33 194.34 194.35 194.36 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9 195.10 195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22 195.23 195.24 195.25 195.26 195.27 195.28 195.29 195.30 195.31 195.32 195.33 195.34 195.35 195.36 196.1 196.2 196.3 196.4 196.5 196.6 196.7 196.8 196.9 196.10 196.11
196.12 196.13
196.14 196.15 196.16 196.17 196.18 196.19 196.20 196.21 196.22 196.23 196.24 196.25 196.26 196.27 196.28 196.29 196.30 196.31 196.32
196.33 196.34
197.1 197.2 197.3 197.4 197.5 197.6 197.7 197.8 197.9 197.10 197.11 197.12 197.13 197.14 197.15 197.16 197.17 197.18 197.19 197.20 197.21 197.22 197.23 197.24 197.25 197.26 197.27 197.28 197.29 197.30 197.31 197.32 197.33 197.34 197.35 197.36 198.1 198.2 198.3 198.4 198.5 198.6 198.7 198.8 198.9
198.10 198.11 198.12
198.13 198.14 198.15 198.16 198.17 198.18 198.19 198.20 198.21 198.22 198.23 198.24 198.25 198.26 198.27 198.28 198.29 198.30 198.31 198.32 198.33 198.34 198.35 199.1 199.2
199.3 199.4
199.5 199.6 199.7 199.8 199.9 199.10 199.11 199.12 199.13 199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22 199.23 199.24 199.25 199.26 199.27 199.28 199.29 199.30 199.31 199.32 199.33 199.34 199.35 200.1 200.2 200.3 200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14 200.15 200.16 200.17 200.18 200.19 200.20 200.21 200.22 200.23 200.24 200.25 200.26 200.27 200.28 200.29 200.30 200.31 200.32 200.33
200.34 200.35 200.36
201.1 201.2 201.3 201.4 201.5 201.6 201.7 201.8 201.9 201.10 201.11 201.12 201.13 201.14 201.15 201.16 201.17 201.18 201.19 201.20 201.21 201.22 201.23 201.24 201.25 201.26 201.27 201.28
201.29 201.30
201.31 201.32 201.33 201.34 201.35 202.1 202.2 202.3 202.4 202.5 202.6 202.7 202.8 202.9 202.10
202.11 202.12
202.13 202.14 202.15 202.16 202.17 202.18 202.19 202.20 202.21 202.22 202.23 202.24 202.25 202.26 202.27 202.28 202.29 202.30 202.31 202.32
203.1 203.2 203.3
203.4 203.5 203.6 203.7 203.8 203.9 203.10 203.11 203.12 203.13 203.14 203.15 203.16 203.17 203.18 203.19 203.20 203.21 203.22 203.23 203.24 203.25 203.26 203.27 203.28 203.29
203.30 203.31 203.32
203.33 203.34 204.1 204.2 204.3 204.4 204.5 204.6 204.7 204.8 204.9 204.10 204.11 204.12 204.13
204.14 204.15 204.16
204.17 204.18 204.19 204.20 204.21 204.22 204.23 204.24 204.25 204.26 204.27 204.28 204.29 204.30 204.31 204.32 204.33 204.34 204.35 205.1 205.2 205.3 205.4 205.5 205.6 205.7 205.8
205.9 205.10 205.11
205.12 205.13 205.14 205.15 205.16 205.17 205.18 205.19 205.20 205.21 205.22 205.23 205.24
205.25 205.26
205.27 205.28 205.29 205.30 205.31 205.32 205.33 206.1 206.2 206.3 206.4 206.5 206.6 206.7 206.8 206.9 206.10 206.11 206.12 206.13 206.14 206.15
206.16 206.17 206.18
206.19 206.20 206.21 206.22 206.23 206.24 206.25
206.26
206.27 206.28 206.29 206.30 206.31 206.32 206.33 207.1 207.2 207.3 207.4 207.5
207.6 207.7 207.8
207.9 207.10 207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27 207.28 207.29 207.30 207.31 207.32 207.33 207.34 207.35 208.1 208.2 208.3 208.4 208.5
208.6 208.7 208.8
208.9 208.10 208.11 208.12 208.13 208.14 208.15 208.16 208.17 208.18
208.19 208.20 208.21
208.22 208.23 208.24 208.25 208.26 208.27 208.28 208.29 208.30 208.31 208.32
208.33
209.1 209.2
209.3 209.4 209.5 209.6 209.7 209.8 209.9 209.10 209.11 209.12 209.13 209.14 209.15 209.16 209.17 209.18 209.19 209.20
209.21 209.22 209.23 209.24 209.25 209.26 209.27 209.28 209.29 209.30 209.31 209.32 209.33 209.34 210.1 210.2 210.3 210.4 210.5 210.6 210.7 210.8 210.9 210.10 210.11 210.12 210.13 210.14 210.15 210.16 210.17 210.18
210.19 210.20 210.21 210.22 210.23
210.24 210.25 210.26 210.27 210.28 210.29 210.30
210.31 210.32 211.1 211.2 211.3 211.4 211.5 211.6 211.7 211.8 211.9 211.10 211.11 211.12 211.13 211.14 211.15 211.16 211.17 211.18 211.19 211.20 211.21 211.22 211.23 211.24 211.25 211.26 211.27 211.28 211.29 211.30 211.31 211.32 211.33 211.34 211.35 211.36 212.1 212.2 212.3 212.4 212.5 212.6 212.7 212.8 212.9 212.10 212.11 212.12 212.13 212.14 212.15 212.16 212.17 212.18 212.19 212.20 212.21 212.22 212.23 212.24
212.25
212.26 212.27 212.28 212.29 212.30 212.31 212.32 212.33 212.34 212.35 213.1 213.2 213.3 213.4 213.5 213.6 213.7 213.8 213.9 213.10 213.11 213.12 213.13 213.14 213.15 213.16 213.17 213.18 213.19 213.20 213.21 213.22 213.23 213.24 213.25 213.26 213.27 213.28 213.29 213.30 213.31 213.32 213.33 213.34 213.35 213.36 214.1 214.2 214.3 214.4 214.5 214.6 214.7 214.8 214.9 214.10 214.11 214.12 214.13 214.14 214.15 214.16 214.17 214.18 214.19
214.20
214.21 214.22 214.23 214.24 214.25 214.26 214.27 214.28 214.29 214.30 214.31 214.32 214.33 214.34 214.35 215.1 215.2 215.3 215.4 215.5 215.6 215.7 215.8 215.9 215.10 215.11 215.12 215.13
215.14 215.15
215.16 215.17 215.18 215.19 215.20 215.21 215.22 215.23 215.24
215.25 215.26
215.27 215.28 215.29 215.30 215.31 215.32 215.33 216.1 216.2 216.3 216.4 216.5 216.6 216.7 216.8 216.9 216.10 216.11 216.12 216.13 216.14 216.15 216.16 216.17 216.18 216.19
216.20 216.21
216.22 216.23
216.24 216.25 216.26 216.27 216.28 216.29 216.30 216.31 216.32 216.33 217.1 217.2 217.3 217.4 217.5 217.6 217.7 217.8 217.9 217.10
217.11
217.12 217.13 217.14 217.15 217.16 217.17 217.18 217.19 217.20 217.21 217.22 217.23 217.24 217.25 217.26 217.27 217.28 217.29 217.30 217.31 217.32 217.33 217.34 217.35 218.1 218.2
218.3
218.4 218.5 218.6 218.7 218.8 218.9
218.10
218.11 218.12 218.13 218.14 218.15 218.16 218.17 218.18 218.19 218.20 218.21 218.22 218.23 218.24 218.25 218.26 218.27 218.28 218.29 218.30 218.31 219.1 219.2 219.3 219.4 219.5 219.6 219.7 219.8 219.9 219.10 219.11 219.12 219.13 219.14 219.15 219.16 219.17 219.18 219.19 219.20 219.21 219.22 219.23 219.24 219.25 219.26 219.27 219.28 219.29 219.30 219.31 219.32 219.33 219.34 219.35 219.36 220.1 220.2 220.3 220.4 220.5 220.6 220.7 220.8 220.9 220.10 220.11 220.12 220.13 220.14 220.15 220.16 220.17 220.18 220.19 220.20 220.21 220.22 220.23 220.24 220.25 220.26 220.27 220.28 220.29 220.30 220.31 220.32 220.33 220.34 220.35 221.1 221.2 221.3 221.4 221.5 221.6 221.7 221.8 221.9 221.10 221.11 221.12 221.13 221.14 221.15 221.16 221.17 221.18 221.19 221.20 221.21 221.22 221.23 221.24 221.25 221.26 221.27 221.28 221.29 221.30 221.31 221.32 221.33 221.34 221.35 222.1 222.2 222.3 222.4 222.5 222.6 222.7 222.8 222.9 222.10 222.11 222.12 222.13 222.14 222.15 222.16 222.17 222.18 222.19 222.20 222.21 222.22 222.23 222.24 222.25 222.26 222.27 222.28 222.29 222.30 222.31 222.32 222.33 222.34 222.35 223.1 223.2 223.3 223.4 223.5 223.6 223.7 223.8 223.9 223.10 223.11 223.12 223.13 223.14 223.15 223.16 223.17 223.18 223.19 223.20 223.21 223.22 223.23 223.24 223.25 223.26 223.27 223.28 223.29 223.30 223.31 223.32 223.33 223.34 223.35 223.36 224.1 224.2 224.3 224.4 224.5 224.6 224.7 224.8 224.9 224.10 224.11 224.12 224.13 224.14 224.15 224.16 224.17 224.18 224.19 224.20 224.21 224.22 224.23 224.24 224.25 224.26 224.27 224.28 224.29 224.30 224.31 224.32 224.33 224.34 224.35 224.36 225.1 225.2 225.3 225.4 225.5 225.6 225.7 225.8 225.9 225.10 225.11 225.12 225.13 225.14 225.15 225.16 225.17 225.18 225.19 225.20 225.21 225.22 225.23 225.24 225.25 225.26 225.27 225.28 225.29 225.30 225.31
225.32 225.33 225.34 225.35 226.1 226.2 226.3 226.4 226.5 226.6 226.7 226.8 226.9 226.10 226.11 226.12 226.13 226.14 226.15 226.16 226.17 226.18 226.19 226.20 226.21 226.22
226.23 226.24
226.25 226.26 226.27 226.28 226.29 226.30 226.31 226.32 226.33 226.34 226.35
227.1
227.2 227.3 227.4 227.5 227.6 227.7 227.8 227.9 227.10 227.11 227.12 227.13 227.14 227.15 227.16 227.17 227.18 227.19 227.20 227.21 227.22 227.23 227.24 227.25 227.26 227.27 227.28 227.29 227.30 227.31 227.32 227.33 227.34 227.35 228.1 228.2 228.3 228.4 228.5 228.6 228.7 228.8 228.9 228.10 228.11 228.12 228.13 228.14 228.15 228.16 228.17 228.18 228.19 228.20 228.21 228.22 228.23 228.24 228.25 228.26 228.27 228.28 228.29 228.30 228.31 228.32 228.33 228.34 228.35 228.36 229.1 229.2 229.3 229.4 229.5 229.6 229.7 229.8 229.9 229.10 229.11 229.12 229.13 229.14 229.15 229.16 229.17 229.18 229.19 229.20 229.21 229.22 229.23 229.24 229.25 229.26 229.27 229.28 229.29 229.30 229.31 229.32 229.33 229.34 229.35 230.1 230.2 230.3 230.4 230.5 230.6 230.7 230.8 230.9 230.10 230.11 230.12 230.13 230.14 230.15 230.16 230.17 230.18 230.19 230.20
230.21 230.22
230.23 230.24 230.25 230.26 230.27 230.28 230.29 230.30 230.31 230.32 230.33 230.34
231.1
231.2 231.3 231.4 231.5 231.6 231.7 231.8 231.9 231.10 231.11 231.12 231.13 231.14 231.15 231.16 231.17 231.18 231.19 231.20 231.21 231.22 231.23 231.24 231.25 231.26 231.27 231.28 231.29 231.30 231.31 231.32 231.33 231.34 231.35 232.1 232.2 232.3 232.4 232.5 232.6 232.7 232.8 232.9 232.10 232.11 232.12 232.13 232.14 232.15 232.16 232.17 232.18 232.19 232.20 232.21 232.22 232.23 232.24
232.25
232.26 232.27 232.28 232.29 232.30 232.31 232.32 232.33 232.34 233.1 233.2 233.3 233.4 233.5 233.6 233.7 233.8 233.9 233.10 233.11 233.12 233.13 233.14 233.15 233.16 233.17 233.18 233.19 233.20 233.21 233.22
233.23 233.24
233.25 233.26 233.27 233.28 233.29 233.30 233.31 233.32 233.33 233.34 233.35 234.1 234.2 234.3
234.4 234.5
234.6 234.7 234.8 234.9 234.10 234.11 234.12 234.13 234.14 234.15 234.16 234.17 234.18 234.19 234.20 234.21 234.22 234.23 234.24 234.25 234.26 234.27 234.28 234.29 234.30 234.31 234.32
234.33 234.34
235.1 235.2 235.3 235.4 235.5 235.6 235.7 235.8 235.9 235.10 235.11 235.12 235.13 235.14 235.15 235.16 235.17 235.18 235.19 235.20 235.21 235.22 235.23 235.24 235.25 235.26 235.27 235.28 235.29
235.30
235.31 235.32 235.33 235.34 235.35
236.1 236.2 236.3 236.4 236.5 236.6 236.7 236.8 236.9 236.10 236.11 236.12 236.13 236.14 236.15 236.16 236.17

A bill for an act
relating to the financing and operation of state and local government; making
policy, technical, administrative, enforcement, collection, refund, clarifying,
and other changes to income, franchise, property, sales and use, estate, gift,
cigarette, tobacco, liquor, motor vehicle, gross receipts, minerals, tax increment
financing and other taxes and tax-related provisions; requiring certain additions;
conforming to federal section 179 expensing allowances; adding Minnesota
development subsidies to corporate taxable income; disallowing certain
subtractions; allowing certain nonrefundable credits; allowing a refundable
Minnesota child credit; repealing various credits; conforming to certain
federal tax provisions; expanding definition of domestic corporation to include
tax havens; modifying income tax rates; expanding and increasing credit
for research activities; accelerating single sales apportionment; modifying
minimum fees; allowing county local sales tax; eliminating certain existing
local sales taxes; adjusting county program aid; modifying levy limits; making
changes to residential homestead market value credit; providing flexibility
and mandate reduction provisions; making changes to various property tax
and local government aid-related provisions; providing temporary suspension
of new or increased maintenance of effort and matching fund requirements;
modifying county support of libraries; establishing the Council on Local
Results and Innovation; providing property tax system benchmarks, critical
indicators, and principles; establishing a property tax work group; creating
the Legislative Commission on Mandate Reform; making changes to certain
administrative procedures; modifying mortgage registry tax payments;
modifying truth in taxation provisions; providing clarification for eligibility
for property tax exemption for institutions of purely public charity; making
changes to property tax refund and senior citizen property tax deferral
programs; providing property tax exemptions; providing a property valuation
reduction for certain land constituting a riparian buffer; providing a partial
valuation exclusion for disaster damaged homes; extending deadline for special
service district and housing improvement districts; requiring a fiscal disparity
study; extending emergency medical service special taxing district; providing
emergency debt certificates; providing and modifying local taxes; expanding
county authorization to abate certain improvements; providing municipal
street improvement districts; establishing a seasonal recreational property tax
deferral program; expanding sales and use tax base; defining solicitor for
purposes of nexus; providing a bovine tuberculosis testing grant; modifying
tax preparation services law; modifying authority of municipalities to issue
bonds for certain other postemployment benefits; allowing use of increment to
offset state aid reductions; allowing additional authority to spend increments
for housing replacement district plans; modifying and authorizing certain tax
increment financing districts; providing equitable funding health and human
services reform; modifying JOBZ provisions; repealing international economic
development and biotechnology and health science industry zones; modifying
basic sliding fee program funding; providing appointments; requiring reports;
appropriating money; amending Minnesota Statutes 2008, sections 3.842,
subdivision 4a; 3.843; 16C.28, subdivision 1a; 40A.09; 84.82, subdivision
10; 84.922, subdivision 11; 86B.401, subdivision 12; 123B.10, subdivision
1; 134.34, subdivisions 1, 4; 245.4932, subdivision 1; 253B.045, subdivision
2; 254B.04, subdivision 1; 270C.12, by adding a subdivision; 270C.445;
270C.56, subdivision 3; 272.02, subdivision 7, by adding subdivisions; 272.029,
subdivision 6; 273.111, by adding a subdivision; 273.1231, subdivision 1;
273.1232, subdivision 1; 273.124, subdivision 1; 273.13, subdivisions 25, 34;
273.1384, subdivisions 1, 4, by adding a subdivision; 273.1393; 275.025,
subdivisions 1, 2; 275.065, subdivisions 1, 1a, 1c, 3, 6; 275.07, subdivisions
1, 4, by adding a subdivision; 275.70, subdivisions 3, 5; 275.71, subdivisions
2, 4, 5; 276.04, subdivision 2; 279.10; 282.08; 287.08; 289A.02, subdivision
7, as amended; 289A.11, subdivision 1; 289A.20, subdivision 4; 289A.31,
subdivision 5; 290.01, subdivisions 5, 19, as amended, 19a, as amended, 19b,
19c, as amended, 19d, as amended, 29, 31, as amended, by adding subdivisions;
290.014, subdivision 2; 290.06, subdivisions 2c, 2d, by adding subdivisions;
290.0671, subdivision 1; 290.068, subdivisions 1, 3, 4; 290.091, subdivision 2;
290.0921, subdivision 3; 290.0922, subdivisions 1, 3, by adding a subdivision;
290.17, subdivisions 2, 4; 290.191, subdivisions 2, 3; 290A.03, subdivision
15, as amended; 290A.04, subdivision 2; 290B.03, subdivision 1; 290B.04,
subdivisions 3, 4; 290B.05, subdivision 1; 291.005, subdivision 1, as amended;
291.03, subdivision 1; 295.75, subdivision 2; 297A.61, subdivisions 3, 4, 5, 6,
10, 14a, 17a, 21, 38, by adding subdivisions; 297A.62, by adding a subdivision;
297A.63; 297A.64, subdivision 2; 297A.66, subdivision 1, by adding a
subdivision; 297A.67, subdivisions 15, 23; 297A.815, subdivision 3; 297A.83,
subdivision 3; 297A.94; 297A.99, subdivisions 1, 6; 297B.02, subdivision 1;
297F.01, by adding a subdivision; 297F.05, subdivisions 1, 3, 4, by adding a
subdivision; 297G.03, subdivision 1; 297G.04; 298.001, by adding a subdivision;
298.018, subdivisions 1, 2, by adding a subdivision; 298.227; 298.24, subdivision
1; 298.28, subdivisions 2, 11, by adding a subdivision; 306.243, by adding a
subdivision; 344.18; 365.28; 375.194, subdivision 5; 383A.75, subdivision 3;
428A.101; 428A.21; 429.011, subdivision 2a; 429.021, subdivision 1; 429.041,
subdivisions 1, 2; 446A.086, subdivision 8; 465.719, subdivision 9; 469.015;
469.174, subdivision 22; 469.175, subdivisions 1, 6; 469.176, subdivisions 3, 6,
by adding a subdivision; 469.1763, subdivisions 2, 3; 469.178, subdivision 7;
469.315; 469.3192; 473.13, subdivision 1; 473H.04, by adding a subdivision;
473H.05, subdivision 1; 475.51, subdivision 4; 475.52, subdivision 6; 475.58,
subdivision 1; 477A.011, subdivision 36; 477A.0124, by adding a subdivision;
477A.013, subdivision 9, by adding a subdivision; 477A.03, subdivisions 2a,
2b; 641.12, subdivision 1; Laws 1986, chapter 396, section 4, subdivision 3;
by adding a subdivision; Laws 1986, chapter 400, section 44, as amended;
Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended; Laws
1993, chapter 375, article 9, section 46, subdivision 2, as amended, by adding
a subdivision; Laws 1995, chapter 264, article 5, sections 44, subdivision 4,
as amended; 45, subdivision 1, as amended; Laws 1996, chapter 471, article
2, section 30; Laws 1998, chapter 389, article 8, section 37, subdivision 1;
Laws 2001, First Special Session chapter 5, article 3, section 8, as amended;
Laws 2002, chapter 377, article 3, section 25; Laws 2006, chapter 259, article
3, section 12, subdivision 3; Laws 2008, chapter 366, article 5, section 34;
article 6, sections 9; 10; article 7, section 16, subdivision 3; proposing coding
for new law in Minnesota Statutes, chapters 3; 6; 14; 17; 256E; 270C; 272;
273; 275; 290; 292; 297A; 435; 475; 477A; proposing coding for new law as
Minnesota Statutes, chapter 290D; repealing Minnesota Statutes 2008, sections
245.4835; 245.714; 246.54; 254B.02, subdivision 3; 256B.19, subdivision 1;
256I.08; 272.02, subdivision 83; 273.113; 275.065, subdivisions 5a, 6b, 6c, 8,
9, 10; 289A.50, subdivision 10; 290.01, subdivision 6b; 290.06, subdivisions
24, 28, 30, 31, 32, 33, 34; 290.067, subdivisions 1, 2, 2a, 2b, 3, 4; 290.0672;
290.0674; 290.0679; 290.0802; 290.0921, subdivision 7; 290.191, subdivision
4; 290.491; 297A.61, subdivision 45; 297A.68, subdivisions 38, 41; 469.316;
469.317; 469.321; 469.3215; 469.322; 469.323; 469.324; 469.325; 469.326;
469.327; 469.328; 469.329; 469.330; 469.331; 469.332; 469.333; 469.334;
469.335; 469.336; 469.337; 469.338; 469.339; 469.340; 469.341; 477A.0124,
subdivisions 3, 4, 5; 477A.03, subdivision 5; Laws 2009, chapter 3, section 1;
Laws 2009, chapter 12, article 1, section 8.

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

ARTICLE 1

INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND
ESTATE AND GIFT TAXES

Section 1.

Minnesota Statutes 2008, section 289A.02, subdivision 7, as amended by
Laws 2009, chapter 12, article 1, section 1, is amended to read:


Subd. 7.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text beginDecember
31, 2008
deleted text endnew text begin March 31, 2009new 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 2008, section 289A.31, subdivision 5, is amended to read:


Subd. 5.

Withholding tax, withholding from payments to out-of-state
contractors, and withholding by partnerships and small business corporations.

(a)
Except as provided in paragraph (b), an employer or person withholding tax under section
290.92 or 290.923, subdivision 2, who fails to pay to or deposit with the commissioner a
sum or sums required by those sections to be deducted, withheld, and paid, is personally
and individually liable to the state for the sum or sums, and added penalties and interest,
and is not liable to another person for that payment or payments. The sum or sums
deducted and withheld under section 290.92, subdivision 2a or 3, or 290.923, subdivision
2
, must be held as a special fund in trust for the state of Minnesota.

(b) If the employer or person withholding tax under section 290.92 or 290.923,
subdivision 2
, fails to deduct and withhold the tax in violation of those sections, and later
the taxes against which the tax may be credited are paid, the tax required to be deducted
and withheld will not be collected from the employer. This does not, however, relieve the
employer from liability for any penalties and interest otherwise applicable for failure to
deduct and withhold. new text beginThis paragraph does not apply to an employer subject to paragraph
(g), or to a contractor required to withhold under section 290.92, subdivision 31.
new text end

(c) Liability for payment of withholding taxes includes a responsible person or entity
described in the personal liability provisions of section 270C.56.

(d) Liability for payment of withholding taxes includes a third party lender or surety
described in section 270C.59.

(e) A partnership or S corporation required to withhold and remit tax under section
290.92, subdivisions 4b and 4c, is liable for payment of the tax to the commissioner, and a
person having control of or responsibility for the withholding of the tax or the filing of
returns due in connection with the tax is personally liable for the tax due.

(f) A payor of sums required to be withheld under section 290.9705, subdivision
1
, is liable to the state for the amount required to be deducted, and is not liable to an
out-of-state contractor for the amount of the payment.

new text begin (g) If an employer fails to withhold tax from the wages of an employee when
required to do so under section 290.92, subdivision 2a, by reason of treating the employee
as not being an employee, then the liability for tax is equal to three percent of the wages
paid to the employee. The liability for tax of an employee is not affected by the assessment
or collection of tax under this paragraph. The employer is not entitled to recover from the
employee any tax determined under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes required to be withheld
after June 30, 2009.
new text end

Sec. 3.

Minnesota Statutes 2008, section 290.01, subdivision 5, is amended to read:


Subd. 5.

Domestic corporation.

The term "domestic" when applied to a corporation
means a corporation:

(1) created or organized in the United States, or under the laws of the United States
or of any state, the District of Columbia, or any political subdivision of any of the
foregoing but not including the Commonwealth of Puerto Rico, or any possession of
the United States;

(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue
Code; deleted text beginor
deleted text end

(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Codedeleted text begin.deleted text endnew text begin;
new text end

new text begin (4) which is incorporated in a tax haven;
new text end

new text begin (5) which is engaged in activity in a tax haven sufficient for the tax haven to impose
a net income tax under United States constitutional standards and section 290.015; or
new text end

new text begin (6) which has the average of its property, payroll, and sales factors, as defined under
section 290.191, within the 50 states of the United States and the District of Columbia of
20 percent or more.
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, 2008.
new text end

Sec. 4.

Minnesota Statutes 2008, section 290.01, is amended by adding a subdivision
to read:


new text begin Subd. 5c. new text end

new text begin Tax haven. new text end

new text begin (a) "Tax haven" means a foreign jurisdiction designated
under this subdivision.
new text end

new text begin (b) The commissioner may designate a foreign jurisdiction as a tax haven by
administrative rule if the jurisdiction:
new text end

new text begin (1) has no or nominal effective tax on the relevant income; and
new text end

new text begin (2)(i) has laws or practices that prevent effective exchange of information for tax
purposes with other governments on taxpayers benefiting from the tax regime;
new text end

new text begin (ii) has a tax regime that lacks transparency. A tax regime lacks transparency if the
details of legislative, legal, or administrative provisions are not open and apparent or are
not consistently applied among similarly situated taxpayers, or if the information needed
by tax authorities to determine a taxpayer's correct tax liability, such as accounting records
and underlying documentation, is not adequately available;
new text end

new text begin (iii) facilitates the establishment of foreign-owned entities without the need for a
local substantive presence or prohibits these entities from having any commercial impact
on the local economy;
new text end

new text begin (iv) explicitly or implicitly excludes the jurisdiction's resident taxpayers from taking
advantage of the tax regime's benefits or prohibits enterprises that benefit from the regime
from operating in the jurisdiction's domestic markets; or
new text end

new text begin (v) has created a tax regime that is favorable for tax avoidance, based upon an
overall assessment of relevant factors, including whether the jurisdiction has a significant
untaxed offshore financial or other services sector relative to its overall economy.
new text end

new text begin (c) The following foreign jurisdictions are deemed to be tax havens, unless the
commissioner, by revenue notice, revokes the listing of a jurisdiction:
new text end

new text begin (1) Anguilla;
new text end

new text begin (2) Antigua and Barbuda;
new text end

new text begin (3) Aruba;
new text end

new text begin (4) Bahamas;
new text end

new text begin (5) Barbados;
new text end

new text begin (6) Belize;
new text end

new text begin (7) Bermuda;
new text end

new text begin (8) British Virgin Islands;
new text end

new text begin (9) Cayman Islands;
new text end

new text begin (10) Cook Islands;
new text end

new text begin (11) Dominica;
new text end

new text begin (12) Gibraltar;
new text end

new text begin (13) Grenada;
new text end

new text begin (14) Guernsey-Sark-Alderney;
new text end

new text begin (15) Isle of Man;
new text end

new text begin (16) Jersey;
new text end

new text begin (17) Latvia;
new text end

new text begin (18) Liechtenstein;
new text end

new text begin (19) Luxembourg;
new text end

new text begin (20) Nauru;
new text end

new text begin (21) Netherlands Antilles;
new text end

new text begin (22) Panama;
new text end

new text begin (23) Samoa;
new text end

new text begin (24) St. Kitts and Nevis;
new text end

new text begin (25) St. Lucia;
new text end

new text begin (26) St. Vincent and Grenadines;
new text end

new text begin (27) Turks and Caicos; and
new text end

new text begin (28) Vanuatu.
new text end

new text begin (d) The commissioner shall revoke a foreign jurisdiction's listing under paragraph
(b) or (c), as applicable, if the United States enters into a tax treaty or other agreement
with the foreign jurisdiction that provides for prompt, obligatory, and automatic exchange
of information with the United States government relevant to enforcing the provisions of
federal tax laws and the treaty or other agreement was in effect for the taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 5.

Minnesota Statutes 2008, section 290.01, subdivision 19, as amended by Laws
2009, chapter 12, article 1, section 2, is amended to read:


Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through deleted text beginDecember 31, 2008deleted text endnew text begin March
31, 2009
new text end, shall be in effect for taxable years beginning after December 31, 1996.

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008. In enacting this section and other provisions of this article, the
legislature intends net income to include and tax to apply to interest paid on any Build
America Bond, as defined under section 54AA of the Internal Revenue Code of 1986,
notwithstanding the provisions of section 1531 of Division B, Title I of the American
Recovery and Reinvestment Act of 2009, Public Law 111-5.
new text end

Sec. 6.

Minnesota Statutes 2008, section 290.01, subdivision 19a, as amended by Laws
2009, chapter 12, article 1, section 3, is amended to read:


Subd. 19a.

Additions to federal taxable income.

For individuals, estates, and
trusts, there shall be added to federal taxable income:

(1)(i) interest income on obligations of any state deleted text beginother than Minnesotadeleted text end or a political or
governmental subdivision, municipality, or governmental agency or instrumentality of any
state deleted text beginother than Minnesotadeleted text end exempt from federal income taxes under the Internal Revenue
Code or any other federal statutenew text begin, but excluding interest on qualified obligationsnew text end; and

(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
Code, except the portion of the exempt-interest dividends derived from interest income
on obligations of the state of Minnesota or its political or governmental subdivisions,
municipalities, governmental agencies or instrumentalities, but only if the portion of the
exempt-interest dividends from such Minnesota sources paid to all shareholders represents
95 percent or more of the exempt-interest dividends that are paid by the regulated
investment company as defined in section 851(a) of the Internal Revenue Code, or the
fund of the regulated investment company as defined in section 851(g) of the Internal
Revenue Code, making the paymentnew text begin and only to the extent the interest is paid on qualified
obligations
new text end; and

(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
government described in section 7871(c) of the Internal Revenue Code shall be treated as
interest income on obligations of the state in which the tribe is located;

(2)new text begin(i) new text end the amount of income deleted text beginordeleted text endnew text begin,new text end sales and usenew text begin, motor vehicle sales, or excisenew text end taxes
paid or accrued within the taxable year under this chapter and the amount of taxes based
on net income paid deleted text beginordeleted text endnew text begin,new text end sales and usenew text begin, motor vehicle sales, or excisenew text end taxes paid to any other
state or to any province or territory of Canadadeleted text begin,deleted text endnew text begin;new text end

new text begin (ii) the amount of real and personal property taxes paid or accrued within the taxable
year;
new text end

new text begin (iii) qualified residence interest, as defined in section 163(h) of the Internal Revenue
Code, to the extent allowed as a deduction under section 63(d) of the Internal Revenue
Code; and
new text end

new text begin (iv) charitable contributions, as defined in section 170(c) of the Internal Revenue
Code, to the extent allowed as a deduction under section 170(a) of the Internal Revenue
Code,
new text end

to the extent allowed as deleted text begina deductiondeleted text endnew text begin deductionsnew text end under section 63(d) of the Internal Revenue
Codedeleted text begin, but the additiondeleted text endnew text begin; but the sum of the additions made under items (i), (ii), (iii), and
(iv)
new text end may not be more than the amount by which the itemized deductions as allowed under
section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction
as defined in section 63(c) of the Internal Revenue Code, disregarding the deleted text beginamountdeleted text endnew text begin amountsnew text end
allowed under deleted text beginsectiondeleted text endnew text begin sectionsnew text end 63(c)(1)(C) new text beginand 63(c)(1)(E) new text endof the Internal Revenue Code.
For the purpose of this paragraph, the disallowance of itemized deductions under section
68 of the Internal Revenue Code of 1986, income or sales and use tax deleted text beginisdeleted text endnew text begin, motor vehicle
sales or excise tax, real and personal property taxes, qualified residence interest, and
charitable contributions are
new text end the last itemized deleted text begindeductiondeleted text endnew text begin deductionsnew text end disallowed;

(3) the capital gain amount of a lump-sum distribution to which the special tax under
section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;

(4) the amount of income taxes paid or accrued within the taxable year under this
chapter and taxes based on net income paid to any other state or any province or territory
of Canada, to the extent allowed as a deduction in determining federal adjusted gross
income. For the purpose of this paragraph, income taxes do not include the taxes imposed
by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;

(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
other than expenses or interest used in computing net interest income for the subtraction
allowed under subdivision 19b, clause (1);

(6) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(7) 80 percent of the depreciation deduction allowed under section 168(k) of the
Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
in the taxable year generates a deduction for depreciation under section 168(k) and the
activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
limited to excess of the depreciation claimed by the activity under section 168(k) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k) is allowed;

(8) new text beginfor taxable years beginning before January 1, 2009, new text end80 percent of the amount by
which the deduction allowed by section 179 of the Internal Revenue Code exceeds the
deduction allowable by section 179 of the Internal Revenue Code of 1986, as amended
through December 31, 2003;

(9) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(10) the exclusion allowed under section 139A of the Internal Revenue Code for
federal subsidies for prescription drug plans;

(11) the amount of expenses disallowed under section 290.10, subdivision 2;

(12) the amount deducted for qualified tuition and related expenses under section
222 of the Internal Revenue Code, to the extent deducted from gross income;

(13) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted
from gross income; deleted text beginand
deleted text end

(14) the additional standard deduction for property taxes payable that is allowable
under section 63(c)(1)(C) of the Internal Revenue Codedeleted text begin.deleted text endnew text begin;
new text end

new text begin (15) the additional deduction for qualified motor vehicle sales tax allowable under
section 63(c)(1)(E) of the Internal Revenue Code; and
new text end

new text begin (16) discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) 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, 2008, except that clause (16) is effective for taxable years ending after
December 31, 2008.
new text end

Sec. 7.

Minnesota Statutes 2008, section 290.01, subdivision 19b, is amended to read:


Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

deleted text begin (3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;
deleted text end

deleted text begin (4) income as provided under section 290.0802;
deleted text end

deleted text begin (5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;
deleted text end

deleted text begin (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and
under the provisions of Public Law 109-1;
deleted text end

deleted text begin (7) for taxable years beginning before January 1, 2008, the amount of the federal
small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
which is included in gross income under section 87 of the Internal Revenue Code;
deleted text end

deleted text begin (8) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;
deleted text end

deleted text begin (9)deleted text endnew text begin (3)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition. The resulting delayed depreciation cannot be
less than zero;

deleted text begin (10) job opportunity building zone income as provided under section 469.316;
deleted text end

deleted text begin (11)deleted text endnew text begin (4)new text end to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service performed in Minnesota, excluding compensation
for services performed under the Active Guard Reserve (AGR) program. For purposes of
this clause, "active service" means (i) state active service as defined in section 190.05,
subdivision 5a
, clause (1); (ii) federally funded state active service as defined in section
190.05, subdivision 5b; or (iii) federal active service as defined in section 190.05,
subdivision 5c
, but "active service" excludes service performed in accordance with section
190.08, subdivision 3;

deleted text begin (12)deleted text endnew text begin (5)new text end to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States or
United Nations for active duty performed outside Minnesota under United States Code,
title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
the United Nations;

deleted text begin (13) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;
deleted text end

deleted text begin (14)deleted text endnew text begin (6)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
case of a shareholder of a corporation that is an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
subtraction is not allowed under this clause;

deleted text begin (15)deleted text endnew text begin (7)new text end to the extent included in federal taxable income, compensation paid to a
service member as defined in United States Code, title 10, section 101(a)(5), for military
service as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section
101(2);new text begin and
new text end

deleted text begin (16) international economic development zone income as provided under section
469.325; and
deleted text end

deleted text begin (17) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
program.
deleted text end

new text begin (8) to the extent included in federal taxable income, discharge of indebtedness
income from reacquisition of business indebtedness included in federal taxable income
under section 108(i) of the Internal Revenue Code. This subtraction applies only to the
extent that the income was included in net income in a prior year as a result of the addition
under subdivision 19a, clause (16).
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, 2008, except that clause (8) is effective for taxable years ending after
December 31, 2008.
new text end

Sec. 8.

Minnesota Statutes 2008, section 290.01, subdivision 19c, as amended by Laws
2009, chapter 12, article 1, section 4, is amended to read:


Subd. 19c.

Corporations; additions to federal taxable income.

For corporations,
there shall be added to federal taxable income:

(1) the amount of any deduction taken for federal income tax purposes for income,
excise, or franchise taxes based on net income or related minimum taxes, including but not
limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
another state, a political subdivision of another state, the District of Columbia, or any
foreign country or possession of the United States;

(2) interest not subject to federal tax upon obligations of: the United States, its
possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
state, any of its political or governmental subdivisions, any of its municipalities, or any
of its governmental agencies or instrumentalities; the District of Columbia; or Indian
tribal governments;

(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
Revenue Code;

(4) the amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
deduction under section 810 of the Internal Revenue Code;

(5) the amount of any special deductions taken for federal income tax purposes
under sections 241 to 247 and 965 of the Internal Revenue Code;

(6) losses from the business of mining, as defined in section 290.05, subdivision 1,
clause (a), that are not subject to Minnesota income tax;

(7) the amount of any capital losses deducted for federal income tax purposes under
sections 1211 and 1212 of the Internal Revenue Code;

(8) the exempt foreign trade income of a foreign sales corporation under sections
921(a) and 291 of the Internal Revenue Code;

(9) the amount of percentage depletion deducted under sections 611 through 614 and
291 of the Internal Revenue Code;

(10) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, the amount of the amortization deduction allowed in computing federal taxable
income for those facilities;

(11) new text beginfor taxable years beginning before January 1, 2009, new text endthe amount of any deemed
dividend from a foreign operating corporation determined pursuant to section 290.17,
subdivision 4
, paragraph (g). The deemed dividend shall be reduced by the amount of the
addition to income required by clauses (20), (21), (22), and (23);

(12) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(13) the amount of net income excluded under section 114 of the Internal Revenue
Code;

(14) any increase in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard to
the provisions of Division C, title III, section deleted text begin304(a)(1)-(2)deleted text endnew text begin 303(b)new text end of Public Law 110-343;

(15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
has an activity that in the taxable year generates a deduction for depreciation under
section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k)(1)(A) and (k)(4)(A) is allowed;

(16) new text beginfor taxable years beginning before January 1, 2009, new text end80 percent of the amount by
which the deduction allowed by section 179 of the Internal Revenue Code exceeds the
deduction allowable by section 179 of the Internal Revenue Code of 1986, as amended
through December 31, 2003;

(17) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(18) the exclusion allowed under section 139A of the Internal Revenue Code for
federal subsidies for prescription drug plans;

(19) the amount of expenses disallowed under section 290.10, subdivision 2;

(20) an amount equal to the interest and intangible expenses, losses, and costs paid,
accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit
of a corporation that is a member of the taxpayer's unitary business group that qualifies
as a foreign operating corporation. For purposes of this clause, intangible expenses and
costs include:

(i) expenses, losses, and costs for, or related to, the direct or indirect acquisition,
use, maintenance or management, ownership, sale, exchange, or any other disposition of
intangible property;

(ii) losses incurred, directly or indirectly, from factoring transactions or discounting
transactions;

(iii) royalty, patent, technical, and copyright fees;

(iv) licensing fees; and

(v) other similar expenses and costs.

For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.

This clause does not apply to any item of interest or intangible expenses or costs paid,
accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect
to such item of income to the extent that the income to the foreign operating corporation
is income from sources without the United States as defined in subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code;

(21) except as already included in the taxpayer's taxable income pursuant to clause
(20), any interest income and income generated from intangible property received or
accrued by a foreign operating corporation that is a member of the taxpayer's unitary
group. For purposes of this clause, income generated from intangible property includes:

(i) income related to the direct or indirect acquisition, use, maintenance or
management, ownership, sale, exchange, or any other disposition of intangible property;

(ii) income from factoring transactions or discounting transactions;

(iii) royalty, patent, technical, and copyright fees;

(iv) licensing fees; and

(v) other similar income.

For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.

This clause does not apply to any item of interest or intangible income received or accrued
by a foreign operating corporation with respect to such item of income to the extent that
the income is income from sources without the United States as defined in subtitle A,
chapter 1, subchapter N, part 1, of the Internal Revenue Code;

(22) the dividends attributable to the income of a foreign operating corporation that
is a member of the taxpayer's unitary group in an amount that is equal to the dividends
paid deduction of a real estate investment trust under section 561(a) of the Internal
Revenue Code for amounts paid or accrued by the real estate investment trust to the
foreign operating corporation;

(23) the income of a foreign operating corporation that is a member of the taxpayer's
unitary group in an amount that is equal to gains derived from the sale of real or personal
property located in the United States; deleted text beginand
deleted text end

(24) the additional amount allowed as a deduction for donation of computer
technology and equipment under section 170(e)(6) of the Internal Revenue Code, to the
extent deducted from taxable incomedeleted text begin.deleted text endnew text begin; andnew text end

new text begin (25) discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) 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, 2008, except that clause (25) is effective for taxable years ending after
December 31, 2008.
new text end

Sec. 9.

Minnesota Statutes 2008, section 290.01, subdivision 19d, as amended by Laws
2009, chapter 12, article 1, section 5, is amended to read:


Subd. 19d.

Corporations; modifications decreasing federal taxable income.

For
corporations, there shall be subtracted from federal taxable income after the increases
provided in subdivision 19c:

(1) the amount of foreign dividend gross-up added to gross income for federal
income tax purposes under section 78 of the Internal Revenue Code;

(2) the amount of salary expense not allowed for federal income tax purposes due to
claiming the work opportunity credit under section 51 of the Internal Revenue Code;

(3) any dividend (not including any distribution in liquidation) paid within the
taxable year by a national or state bank to the United States, or to any instrumentality of
the United States exempt from federal income taxes, on the preferred stock of the bank
owned by the United States or the instrumentality;

(4) amounts disallowed for intangible drilling costs due to differences between
this chapter and the Internal Revenue Code in taxable years beginning before January
1, 1987, as follows:

(i) to the extent the disallowed costs are represented by physical property, an amount
equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09,
subdivision 7
, subject to the modifications contained in subdivision 19e; and

(ii) to the extent the disallowed costs are not represented by physical property, an
amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
290.09, subdivision 8;

(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
Internal Revenue Code, except that:

(i) for capital losses incurred in taxable years beginning after December 31, 1986,
capital loss carrybacks shall not be allowed;

(ii) for capital losses incurred in taxable years beginning after December 31, 1986,
a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
allowed;

(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
capital loss carryback to each of the three taxable years preceding the loss year, subject to
the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and

(iv) for capital losses incurred in taxable years beginning before January 1, 1987,
a capital loss carryover to each of the five taxable years succeeding the loss year to the
extent such loss was not used in a prior taxable year and subject to the provisions of
Minnesota Statutes 1986, section 290.16, shall be allowed;

(6) an amount for interest and expenses relating to income not taxable for federal
income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
291 of the Internal Revenue Code in computing federal taxable income;

(7) in the case of mines, oil and gas wells, other natural deposits, and timber for
which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a
reasonable allowance for depletion based on actual cost. In the case of leases the deduction
must be apportioned between the lessor and lessee in accordance with rules prescribed
by the commissioner. In the case of property held in trust, the allowable deduction must
be apportioned between the income beneficiaries and the trustee in accordance with the
pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
of the trust's income allocable to each;

(8) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
1986, section 290.09, subdivision 7;

(9) amounts included in federal taxable income that are due to refunds of income,
excise, or franchise taxes based on net income or related minimum taxes paid by the
corporation to Minnesota, another state, a political subdivision of another state, the
District of Columbia, or a foreign country or possession of the United States to the extent
that the taxes were added to federal taxable income under section 290.01, subdivision 19c,
clause (1), in a prior taxable year;

deleted text begin (10) 80 percent of royalties, fees, or other like income accrued or received from a
foreign operating corporation or a foreign corporation which is part of the same unitary
business as the receiving corporation, unless the income resulting from such payments or
accruals is income from sources within the United States as defined in subtitle A, chapter
1, subchapter N, part 1, of the Internal Revenue Code;
deleted text end

deleted text begin (11)deleted text endnew text begin (10)new text end income or gains from the business of mining as defined in section 290.05,
subdivision 1
, clause (a), that are not subject to Minnesota franchise tax;

deleted text begin (12)deleted text endnew text begin (11)new text end the amount of disability access expenditures in the taxable year which are
not allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue
Code;

deleted text begin (13)deleted text endnew text begin (12)new text end the amount of qualified research expenses not allowed for federal income
tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
that the amount exceeds the amount of the credit allowed under section 290.068;

deleted text begin (14)deleted text endnew text begin (13)new text end the amount of salary expenses not allowed for federal income tax purposes
due to claiming the Indian employment credit under section 45A(a) of the Internal
Revenue Code;

deleted text begin (15)deleted text endnew text begin (14)new text end for taxable years beginning before January 1, 2008, the amount of the
federal small ethanol producer credit allowed under section 40(a)(3) of the Internal
Revenue Code which is included in gross income under section 87 of the Internal Revenue
Code;

deleted text begin (16)deleted text endnew text begin (15)new text end for a corporation whose foreign sales corporation, as defined in section
922 of the Internal Revenue Code, constituted a foreign operating corporation during any
taxable year ending before January 1, 1995, and a return was filed by August 15, 1996,
claiming the deduction under section 290.21, subdivision 4, for income received from
the foreign operating corporation, an amount equal to 1.23 multiplied by the amount of
income excluded under section 114 of the Internal Revenue Code, provided the income is
not income of a foreign operating company;

deleted text begin (17)deleted text endnew text begin (16)new text end any decrease in subpart F income, as defined in section 952(a) of the
Internal Revenue Code, for the taxable year when subpart F income is calculated without
regard to the provisions of Division C, title III, section deleted text begin304(a)(1)-(2)deleted text endnew text begin 303(b)new text end of Public
Law 110-343;

deleted text begin (18)deleted text endnew text begin (17)new text end in each of the five tax years immediately following the tax year in which
an addition is required under subdivision 19c, clause (15), an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
the amount of the addition made by the taxpayer under subdivision 19c, clause (15). The
resulting delayed depreciation cannot be less than zero; deleted text beginanddeleted text end

deleted text begin (19)deleted text endnew text begin (18)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause (16), an amount equal to one-fifth of
the amount of the additiondeleted text begin.deleted text endnew text begin; andnew text end

new text begin (19) to the extent included in federal taxable income, discharge of indebtedness
income from reacquisition of business indebtedness included in federal taxable income
under section 108(i) of the Internal Revenue Code. This subtraction applies only to the
extent that the income was included in net income in a prior year as a result of the addition
under subdivision 19c, clause (25).
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, 2008, except that clause (19) is effective for taxable years ending after
December 31, 2008.
new text end

Sec. 10.

Minnesota Statutes 2008, section 290.01, subdivision 29, is amended to read:


Subd. 29.

Taxable income.

The term "taxable income" means:

(1) for individuals, estates, and trusts, the same as taxable net income;

(2) for corporations, the taxable net income less

(i) the net operating loss deduction under section 290.095;new text begin and
new text end

(ii) the dividends received deduction under section 290.21, subdivision 4;new text begin plus
new text end

(iii) deleted text beginthe exemption for operating in a job opportunity building zone under section
469.317;
deleted text endnew text begin Minnesota development subsidies.
new text end

deleted text begin (iv) the exemption for operating in a biotechnology and health sciences industry
zone under section 469.337; and
deleted text end

deleted text begin (v) the exemption for operating in an international economic development zone
under section 469.326.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2009.
new text end

Sec. 11.

Minnesota Statutes 2008, section 290.01, subdivision 31, as amended by Laws
2009, chapter 12, article 1, section 7, is amended to read:


Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text beginDecember
31, 2008
deleted text endnew text begin March 31, 2009new text end. Internal Revenue Code also includes any uncodified provision
in federal law that relates to provisions of the Internal Revenue Code that are incorporated
into Minnesota law.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2008, section 290.01, is amended by adding a subdivision
to read:


new text begin Subd. 33. new text end

new text begin Minnesota development subsidies. new text end

new text begin (a) "Minnesota development
subsidies" means the greater of the following amounts:
new text end

new text begin (1) one-half of the amount deducted by the taxpayer in computing federal taxable
income for the taxable year, as property taxes, business expenses, or otherwise, that is
attributable to property taxes paid by the taxpayer, either directly or indirectly through a
lease or otherwise, on property located in a tax increment financing district, as defined in
section 469.174, or that receives an abatement under sections 469.1813 to 469.1815, if the
owner of the property or a related party has entered a development or similar agreement
with respect to the increment district or derives a benefit from the abatement by its
property having access to or use of public improvements financed with the abatement or
otherwise; or
new text end

new text begin (2) the amount of payments received by the taxpayer under a development or similar
agreement that provides for payments or reimbursements from the proceeds of increments
from a tax increment financing district or from an abatement under sections 469.1813 to
469.1815, but excluding reimbursements under a development action response plan, as
defined in section 469.174, subdivision 17, to pay for its costs incurred to fund removal
or remedial actions.
new text end

new text begin (b) For purposes of this subdivision, "tax increment financing district" excludes:
new text end

new text begin (1) a housing district, as defined in section 469.174, subdivision 11;
new text end

new text begin (2) a soils condition district, as defined in section 469.174, subdivision 19; and
new text end

new text begin (3) a hazardous substance subdistrict, as defined in section 469.174, subdivision 23.
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, 2009.
new text end

Sec. 13.

Minnesota Statutes 2008, section 290.01, is amended by adding a subdivision
to read:


new text begin Subd. 34. new text end

new text begin Qualified obligations. new text end

new text begin (a) "Qualified obligations" means:
new text end

new text begin (1) obligations of the state of Minnesota or a political or governmental subdivision,
municipality, or governmental agency or instrumentality of the state of Minnesota if the
obligations were sold before July 1, 2009; or
new text end

new text begin (2) general obligations of the state of Minnesota sold after June 30, 2009, if the
commissioner of finance elects to issue the obligations exempt from taxation under
sections 290.06, subdivision 2c, and 290.091. The commissioner shall make the election
only if, in the commissioner's opinion, doing so is in the best interest of the state because it
will reduce the state's net borrowing costs. Prior to making the election, the commissioner
shall estimate whether (i) the present value of the reduction in state borrowing costs due to
issuing the obligations exempt from taxation under sections 290.06 and 290.091 exceeds
(ii) the present value of the revenues the state would collect if the obligations were
issued subject to taxation under sections 290.06 and 290.091. In making the estimate,
the commissioner may rely on data from past issuances of obligations by the state and
other states without income taxes or that impose their state income taxes on their bonds,
judgments about current market conditions, and any other relevant information, and the
commissioner shall use a reasonable methodology for preparing the estimate after seeking
advice and comments from the state economist or another qualified professional economist.
new text end

new text begin (b) If the commissioner of finance elects to issue qualified obligations under
paragraph (a), clause (2), the commissioner must provide a written report to the chairs
of the committees of the senate and the house of representatives with jurisdiction over
taxes and capital investment on the decision to issue qualified obligations, including the
estimate of the net savings in borrowing costs from the use of qualified obligations and
a detailed description of how the estimate was prepared. This report must be provided
within 15 days after the bonds are sold.
new text end

new text begin (c) The authority to issue tax-exempt obligations under paragraph (a), clause (2),
expires July 1, 2011. If the commissioner of finance elects to issue tax-exempt bonds
under this section during calendar year 2009 or 2010, the commissioner shall prepare a
report for the 2011 legislature evaluating whether the issuance resulted in a net reduction
in state borrowing costs, taking into account the effects of the tax exemption, and shall file
the report by January 31, 2011, under the provisions of Minnesota Statutes, section 3.195.
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, 2008.
new text end

Sec. 14.

Minnesota Statutes 2008, section 290.014, subdivision 2, is amended to read:


Subd. 2.

Nonresident individuals.

Except as provided in section 290.015, a
nonresident individual is subject to the return filing requirements and to tax as provided in
this chapter to the extent that the income of the nonresident individual is:

(1) allocable to this state under section 290.17, 290.191, or 290.20;

(2) taxed to the individual under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character which is taxable under
this chapter) in the individual's capacity as a beneficiary of an estate with income allocable
to this state under section 290.17, 290.191, or 290.20 and the income, taking into account
the income character provisions of section 662(b) of the Internal Revenue Code, would be
allocable to this state under section 290.17, 290.191, or 290.20 if realized by the individual
directly from the source from which realized by the estate;

(3) taxed to the individual under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character that is taxable under
this chapter) in the individual's capacity as a beneficiary or grantor or other person treated
as a substantial owner of a trust with income allocable to this state under section 290.17,
290.191, or 290.20 and the income, taking into account the income character provisions of
section 652(b), 662(b), or 664(b) of the Internal Revenue Code, would be allocable to this
state under section 290.17, 290.191, or 290.20 if realized by the individual directly from
the source from which realized by the trust;

(4) taxed to the individual under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character which is taxable under
this chapter) in the individual's capacity as a limited or general partner in a partnership
with income allocable to this state under section 290.17, 290.191, or 290.20 and the
income, taking into account the income character provisions of section 702(b) of the
Internal Revenue Code, would be allocable to this state under section 290.17, 290.191,
or 290.20 if realized by the individual directly from the source from which realized by
the partnership; deleted text beginordeleted text end

(5) taxed to the individual under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character which is taxable under
this chapter) in the individual's capacity as a shareholder of a corporation treated as an
"S" corporation under section 290.9725, and income allocable to this state under section
290.17, 290.191, or 290.20 and the income, taking into account the income character
provisions of section 1366(b) of the Internal Revenue Code, would be allocable to this
state under section 290.17, 290.191, or 290.20 if realized by the individual directly from
the source from which realized by the corporationdeleted text begin.deleted text endnew text begin; ornew text end

new text begin (6) taxed to the individual under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character which is taxable under
this chapter) in the individual's capacity as the sole member of a limited liability company
that is disregarded for federal income tax purposes, with income allocable to this state
under section 290.17, 290.191, or 290.20, as though realized by the individual directly
from the source from which it was realized by the limited liability company.
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. 15.

Minnesota Statutes 2008, section 290.06, subdivision 2c, is amended to read:


Subd. 2c.

Schedules of rates for individuals, estates, and trusts.

(a) The income
taxes imposed by this chapter upon married individuals filing joint returns and surviving
spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
applying to their taxable net income the following schedule of rates:

(1) on the first deleted text begin$25,680deleted text endnew text begin $33,220new text end, 5.35 percent;

(2) on all over deleted text begin$25,680deleted text endnew text begin $33,220new text end, but not over deleted text begin$102,030deleted text endnew text begin $131,970new text end, 7.05 percent;

(3) on all over deleted text begin$102,030deleted text endnew text begin $131,970new text end, new text beginbut not over $300,000, new text end7.85 percentdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (4) on all over $300,000, nine percent.
new text end

Married individuals filing separate returns, estates, and trusts must compute their
income tax by applying the above rates to their taxable income, except that the income
brackets will be one-half of the above amounts.

(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:

(1) on the first deleted text begin$17,570deleted text endnew text begin $22,730new text end, 5.35 percent;

(2) on all over deleted text begin$17,570deleted text endnew text begin $22,730new text end, but not over deleted text begin$57,710deleted text endnew text begin $74,650new text end, 7.05 percent;

(3) on all over deleted text begin$57,710deleted text endnew text begin $74,650new text end, new text beginbut not over $169,700, new text end7.85 percentdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (4) on all over $169,700, nine percent.
new text end

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
as a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:

(1) on the first deleted text begin$21,630deleted text endnew text begin $27,980new text end, 5.35 percent;

(2) on all over deleted text begin$21,630deleted text endnew text begin $27,980new text end, but not over deleted text begin$86,910deleted text endnew text begin $112,420new text end, 7.05 percent;

(3) on all over deleted text begin$86,910deleted text endnew text begin $112,420new text end,new text begin but not over $255,560,new text end 7.85 percentdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (4) on all over $255,560, nine percent.
new text end

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the
tax of any individual taxpayer whose taxable net income for the taxable year is less than
an amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not
more than $100. The amount of tax for each bracket shall be computed at the rates set
forth in this subdivision, provided that the commissioner may disregard a fractional part of
a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute
the individual's Minnesota income tax as provided in this subdivision. After the
application of the nonrefundable credits provided in this chapter, the tax liability must
then be multiplied by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income
as defined in section 62 of the Internal Revenue Code and increased by the additions
required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12),
deleted text begin anddeleted text end (13)new text begin, and (16),new text end and reduced by the Minnesota assignable portion of the subtraction
for United States government interest under section 290.01, subdivision 19b, clause (1),
and the subtractions under section 290.01, subdivision 19b, clauses deleted text begin(9), (10), (14), (15),
and (16)
deleted text endnew text begin (3), (6), (7), and (8)new text end, after applying the allocation and assignability provisions of
section 290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income as defined in
section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), deleted text beginanddeleted text end (13)new text begin, and (16),new text end
and reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1), deleted text begin(9),
(10), (14), (15), and (16)
deleted text endnew text begin (3), (6), (7), and (8)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, 2008.
new text end

Sec. 16.

Minnesota Statutes 2008, section 290.06, subdivision 2d, is amended to read:


Subd. 2d.

Inflation adjustment of brackets.

(a) For taxable years beginning after
December 31, deleted text begin2000deleted text endnew text begin 2009new text end, the minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the
percentage determined under paragraph (b). For the purpose of making the adjustment as
provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the
rate brackets as they existed for taxable years beginning after December 31, deleted text begin1999deleted text endnew text begin 2008new text end,
and before January 1, deleted text begin2001deleted text endnew text begin 2010new text end. The rate applicable to any rate bracket must not be
changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes
in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10
amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.

(b) The commissioner shall adjust the rate brackets and by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except thatnew text begin:
new text end

new text begin (1) in section 1(f)(2)(A) the words "increasing or decreasing" shall be substituted
for the word "increasing";
new text end

new text begin (2) in section 1(f)(3)(A) the words "differs from" shall be substituted for the word
"exceeds"; and
new text end

new text begin (3) new text endin section 1(f)(3)(B) the word deleted text begin"1999"deleted text endnew text begin "2008"new text end shall be substituted for the word
"1992." For deleted text begin2001deleted text endnew text begin 2010new text end, the commissioner shall then determine the percent change from
the 12 months ending on August 31, deleted text begin1999deleted text endnew text begin 2008new text end, to the 12 months ending on August 31,
deleted text begin 2000deleted text endnew text begin 2009new text end, and in each subsequent year, from the 12 months ending on August 31, deleted text begin1999deleted text endnew text begin
2008
new text end, to the 12 months ending on August 31 of the year preceding the taxable year. The
determination of the commissioner pursuant to this subdivision shall not be considered a
"rule" and shall not be subject to the Administrative Procedure Act contained in chapter 14.

No later than December 15 of each year, the commissioner shall announce the
specific percentage that will be used to adjust the tax rate brackets.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 17.

Minnesota Statutes 2008, section 290.06, is amended by adding a subdivision
to read:


new text begin Subd. 36. new text end

new text begin Mortgage interest credit. new text end

new text begin (a) An individual is allowed a credit against
the tax imposed by this chapter equal to seven percent of the lesser of:
new text end

new text begin (1) $6,000; or
new text end

new text begin (2) qualified residence interest deduction for which the individual is eligible under
section 63(d) of the Internal Revenue Code, minus $4,000.
new text end

new text begin (b) The amount of the credit allowed must be reduced by the amount of the
taxpayer's liability under section 290.091, determined before the credit allowed by this
section is subtracted from regular tax liability.
new text end

new text begin (c) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under subdivision 2c, paragraph (e).
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, 2008.
new text end

Sec. 18.

Minnesota Statutes 2008, section 290.06, is amended by adding a subdivision
to read:


new text begin Subd. 37. new text end

new text begin Charitable contributions credit. new text end

new text begin (a) An individual is allowed a credit
against the tax imposed by this chapter equal to eight percent of the amount by which
eligible charitable contributions exceed the greater of:
new text end

new text begin (1) two percent of the individual's adjusted gross income for the taxable year; or
new text end

new text begin (2) $500.
new text end

new text begin (b) For purposes of this subdivision, "eligible charitable contributions" means
charitable contributions allowable as a deduction for the taxable year under section
170(a) of the Internal Revenue Code, subject to the limitations of section 170(b) of the
Internal Revenue Code, and determined without regard to whether or not the taxpayers
itemize deductions.
new text end

new text begin (c) For purposes of this subdivision, "adjusted gross income" has the meaning given
in section 62 of the Internal Revenue Code.
new text end

new text begin (d) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under subdivision 2c, paragraph (e).
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, 2008.
new text end

Sec. 19.

Minnesota Statutes 2008, section 290.0671, subdivision 1, is amended to read:


Subdivision 1.

Credit allowed.

(a) An individual is allowed a credit against the tax
imposed by this chapter equal to a percentage of earned income. To receive a credit, a
taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.

(b) For individuals with no qualifying children, the credit equals 1.9125 percent of
the first $4,620 of earned income. The credit is reduced by 1.9125 percent of earned
income or adjusted gross income, whichever is greater, in excess of $5,770, but in no
case is the credit less than zero.

(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first
$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than
$13,450. The credit is reduced by 5.73 percent of earned income or adjusted gross income,
whichever is greater, in excess of $15,080, but in no case is the credit less than zero.

(d) For individuals with two or more qualifying children, the credit equals ten
percent of the first $9,720 of earned income and 20 percent of earned income over
$14,860 but less than $16,800. The credit is reduced by 10.3 percent of earned income
or adjusted gross income, whichever is greater, in excess of $17,890, but in no case is
the credit less than zero.

(e) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).

(f) For a person who was a resident for the entire tax year and has earned income
not subject to tax under this chapter, deleted text beginincluding income excluded under section 290.01,
subdivision 19b
, clause (10) or (16),
deleted text end the credit must be allocated based on the ratio of
federal adjusted gross income reduced by the earned income not subject to tax under
this chapter over federal adjusted gross income. For purposes of this paragraph, the
subtractions for military pay under section 290.01, subdivision 19b, clauses deleted text begin(11) and (12)deleted text endnew text begin
(4) and (5)
new text end, are not considered "earned income not subject to tax under this chapter."

For the purposes of this paragraph, the exclusion of combat pay under section 112
of the Internal Revenue Code is not considered "earned income not subject to tax under
this chapter."

(g) For tax years beginning after December 31, 2001, and before December 31,
2004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
$1,000 for married taxpayers filing joint returns.

(h) For tax years beginning after December 31, 2004, and before December 31,
2007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
$2,000 for married taxpayers filing joint returns.

(i) For tax years beginning after December 31, 2007, and before December 31, 2010,
the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
(d), after being adjusted for inflation under subdivision 7, are each increased by $3,000 for
married taxpayers filing joint returns. For tax years beginning after December 31, 2008,
the $3,000 is adjusted annually for inflation under subdivision 7.

(j) The commissioner shall construct tables showing the amount of the credit at
various income levels and make them available to taxpayers. The tables shall follow
the schedule contained in this subdivision, except that the commissioner may graduate
the transition between income brackets.

Sec. 20.

Minnesota Statutes 2008, section 290.068, subdivision 1, is amended to read:


Subdivision 1.

Credit allowed.

A deleted text begincorporation, other than a corporation treated as an
"S" corporation under section 290.9725,
deleted text endnew text begin taxpayernew text end is allowed a credit against deleted text beginthe portion
of
deleted text end the deleted text beginfranchisedeleted text end tax computed under section 290.06deleted text begin, subdivision 1,deleted text end for the taxable year
equal to:

deleted text begin (a) 5deleted text endnew text begin (1) tennew text end percent of the first $2,000,000 of the excess (if any) of

deleted text begin (1)deleted text end new text begin(i) new text endthe qualified research expenses for the taxable year, over

deleted text begin (2)deleted text end new text begin(ii) new text endthe base amount; and

deleted text begin (b)deleted text end new text begin(2) new text end2.5 percent on all of such excess expenses over $2,000,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 21.

Minnesota Statutes 2008, section 290.068, subdivision 3, is amended to read:


Subd. 3.

Limitation; carryover.

(a)(1) The credit for the taxable year shall not
exceed the liability for tax. "Liability for tax" for purposes of this section means the tax
imposed under section 290.06, subdivision 1, for the taxable year reduced by the sum of
the nonrefundable credits allowed under this chapter.

(2) deleted text beginIn the case of a corporation which isdeleted text endnew text begin Fornew text end a partner in a partnershipnew text begin and for a
shareholder in an S corporation
new text end, the credit allowed for the taxable year shall not exceed
the lesser of the amount determined under clause (1) for the taxable year or an amount
(separately computed with respect to the deleted text begincorporation'sdeleted text endnew text begin taxpayer'snew text end interest in the trade or
business or entity) equal to the amount of tax attributable to that portion of taxable income
which is allocable or apportionable to the deleted text begincorporation'sdeleted text endnew text begin taxpayer'snew text end interest in the trade or
business or entity.

(b) If the amount of the credit determined under this section for any taxable year
exceeds the limitation under clause (a), the excess shall be a research credit carryover to
each of the 15 succeeding taxable years. The entire amount of the excess unused credit for
the taxable year shall 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 which may be added under this clause shall not exceed the
taxpayer's liability for tax less the research credit for the taxable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 22.

Minnesota Statutes 2008, section 290.068, subdivision 4, is amended to read:


Subd. 4.

Partnershipsnew text begin and S corporationsnew text end.

In the case of partnershipsnew text begin and S
corporations
new text end the credit shall be allocated in the same manner provided by deleted text beginsectiondeleted text end new text beginsections
new text end41(f)(2) new text beginand 41(g) new text endof the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 23.

new text begin [290.0682] MINNESOTA CHILD 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) "Adjusted gross income" has the meaning given in section 62 of the Internal
Revenue Code.
new text end

new text begin (c) "Qualifying child" has the meaning given in section 24(c) of the Internal
Revenue Code.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual is allowed a credit against the tax
imposed by this chapter equal to the lesser of:
new text end

new text begin (1) $200 for each qualifying child; or
new text end

new text begin (2) ten percent of adjusted gross income in excess of $14,000.
new text end

new text begin (b) The credit allowed in paragraph (a) is reduced by an amount equal to five percent
of adjusted gross income in excess of $28,000, but in no case is the credit less than zero.
new text end

new text begin (c) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that an individual is eligible
to receive under this section exceeds the claimant's tax liability under this chapter, the
commissioner shall refund the excess to the claimant.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this
section is appropriated to the commissioner from the general fund.
new text end

new text begin Subd. 5. new text end

new text begin Inflation adjustment. new text end

new text begin The adjusted gross income floor in subdivision 2,
paragraph (a), clause (2), and the phaseout threshold in subdivision 2, paragraph (b),
must be adjusted for inflation. For tax years beginning after December 31, 2009, the
commissioner shall annually adjust the adjusted gross income floor and the phaseout
threshold by the percentage determined pursuant to section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted for the word
"1992." For 2010, the commissioner shall then determine the percent change from the
12 months ending on August 31, 2008, to the 12 months ending on August 31, 2009,
and in each subsequent year, from the 12 months ending on August 31, 2008, to the 12
months ending on August 31 of the year preceding the taxable year. The adjusted gross
income floor and the phaseout threshold as adjusted for inflation must be rounded to
the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10.
The determination of the commissioner under this subdivision is not a rule under the
Administrative Procedure Act.
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, 2008.
new text end

Sec. 24.

Minnesota Statutes 2008, section 290.091, subdivision 2, is amended to read:


Subd. 2.

Definitions.

For purposes of the tax imposed by this section, the following
terms have the meanings given:

(a) "Alternative minimum taxable income" means the sum of the following for
the taxable year:

(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing federal alternative
minimum taxable income, but excluding:

deleted text begin (i) the charitable contribution deduction under section 170 of the Internal Revenue
Code;
deleted text end

deleted text begin (ii)deleted text endnew text begin (i)new text end the medical expense deduction;

deleted text begin (iii)deleted text endnew text begin (ii)new text end the casualty, theft, and disaster loss deduction; and

deleted text begin (iv)deleted text endnew text begin (iii)new text end the impairment-related work expenses of a disabled person;

(3) for depletion allowances computed under section 613A(c) of the Internal
Revenue Code, with respect to each property (as defined in section 614 of the Internal
Revenue Code), to the extent not included in federal alternative minimum taxable income,
the excess of the deduction for depletion allowable under section 611 of the Internal
Revenue Code for the taxable year over the adjusted basis of the property at the end of the
taxable year (determined without regard to the depletion deduction for the taxable year);

(4) to the extent not included in federal alternative minimum taxable income, the
amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
Internal Revenue Code determined without regard to subparagraph (E);

(5) to the extent not included in federal alternative minimum taxable income, the
amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and

(6) the amount of addition required by section 290.01, subdivision 19a, clauses (7)
to (9), (12), deleted text beginanddeleted text end (13)new text begin, and (16)new text end;

less the sum of the amounts determined under the following:

(1) interest income as defined in section 290.01, subdivision 19b, clause (1);

(2) an overpayment of state income tax as provided by section 290.01, subdivision
19b
, clause (2), to the extent included in federal alternative minimum taxable income;

(3) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as
defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
amounts deducted in computing federal adjusted gross income; and

(4) amounts subtracted from federal taxable income as provided by section 290.01,
subdivision 19b
, clauses deleted text begin(6) and (9) to (16)deleted text endnew text begin (3) to (8)new text end.

In the case of an estate or trust, alternative minimum taxable income must be
computed as provided in section 59(c) of the Internal Revenue Code.

(b) "Investment interest" means investment interest as defined in section 163(d)(3)
of the Internal Revenue Code.

(c) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable
income after subtracting the exemption amount determined under subdivision 3.

(d) "Regular tax" means the tax that would be imposed under this chapter (without
regard to this section and section 290.032), reduced by the sum of the nonrefundable
credits allowed under this chapter.

(e) "Net minimum tax" means the minimum tax imposed by this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 25.

Minnesota Statutes 2008, section 290.0921, subdivision 3, is amended to read:


Subd. 3.

Alternative minimum taxable income.

"Alternative minimum taxable
income" is Minnesota net income as defined in section 290.01, subdivision 19, and
includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
Minnesota tax return, the minimum tax must be computed on a separate company basis.
If a corporation is part of a tax group filing a unitary return, the minimum tax must be
computed on a unitary basis. The following adjustments must be made.

(1) For purposes of the depreciation adjustments under section 56(a)(1) and
56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in
service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal
income tax purposes, including any modification made in a taxable year under section
290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7,
paragraph (c).

For taxable years beginning after December 31, 2000, the amount of any remaining
modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986,
section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation
allowance in the first taxable year after December 31, 2000.

(2) The portion of the depreciation deduction allowed for federal income tax
purposes under section 168(k) of the Internal Revenue Code that is required as an
addition under section 290.01, subdivision 19c, clause (15), is disallowed in determining
alternative minimum taxable income.

(3) The subtraction for depreciation allowed under section 290.01, subdivision
19d
, clause deleted text begin(18)deleted text endnew text begin (17)new text end, is allowed as a depreciation deduction in determining alternative
minimum taxable income.

(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
of the Internal Revenue Code does not apply.

(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
Revenue Code does not apply.

(6) The special rule for dividends from section 936 companies under section
56(g)(4)(C)(iii) does not apply.

(7) The tax preference for depletion under section 57(a)(1) of the Internal Revenue
Code does not apply.

(8) The tax preference for intangible drilling costs under section 57(a)(2) of the
Internal Revenue Code must be calculated without regard to subparagraph (E) and the
subtraction under section 290.01, subdivision 19d, clause (4).

(9) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
Revenue Code does not apply.

(10) The tax preference for charitable contributions of appreciated property under
section 57(a)(6) of the Internal Revenue Code does not apply.

(11) For purposes of calculating the tax preference for accelerated depreciation or
amortization on certain property placed in service before January 1, 1987, under section
57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the
deduction allowed under section 290.01, subdivision 19e.

For taxable years beginning after December 31, 2000, the amount of any remaining
modification made under section 290.01, subdivision 19e, not previously deducted is a
depreciation or amortization allowance in the first taxable year after December 31, 2004.

(12) For purposes of calculating the adjustment for adjusted current earnings in
section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
minimum taxable income as defined in this subdivision, determined without regard to the
adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.

(13) For purposes of determining the amount of adjusted current earnings under
section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), new text beginor new text end(ii) the
amount of refunds of income, excise, or franchise taxes subtracted as provided in section
290.01, subdivision 19d, clause (9)deleted text begin, or (iii) the amount of royalties, fees or other like
income subtracted as provided in section 290.01, subdivision 19d, clause (10)
deleted text end.

deleted text begin (14) Alternative minimum taxable income excludes the income from operating in a
job opportunity building zone as provided under section 469.317.
deleted text end

deleted text begin (15) Alternative minimum taxable income excludes the income from operating in a
biotechnology and health sciences industry zone as provided under section 469.337.
deleted text end

deleted text begin (16) Alternative minimum taxable income excludes the income from operating in an
international economic development zone as provided under section 469.326.
deleted text end

new text begin (14) Alternative minimum taxable income includes Minnesota development
subsidies.
new text end

Items of tax preference must not be reduced below zero as a result of the
modifications in this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2009, except the changes to clauses (3) and (13) and the new clause (14) are
effective for taxable years beginning after December 31, 2008.
new text end

Sec. 26.

Minnesota Statutes 2008, section 290.0922, subdivision 1, is amended to read:


Subdivision 1.

Imposition.

(a) In addition to the tax imposed by this chapter without
regard to this section, the franchise tax imposed on a corporation required to file under
section 289A.08, subdivision 3, other than a corporation treated as an "S" corporation
under section 290.9725 for the taxable year includes a tax equal to the following amounts:

If the sum of the corporation's Minnesota
property, payrolls, and sales or receipts
is:
the tax equals:
deleted text begin less than
deleted text end
deleted text begin $
deleted text end
deleted text begin 500,000
deleted text end
deleted text begin $
deleted text end
deleted text begin 0
deleted text end
deleted text begin $
deleted text end
deleted text begin 500,000 to
deleted text end
deleted text begin $
deleted text end
deleted text begin 999,999
deleted text end
deleted text begin $
deleted text end
deleted text begin 100
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,000,000 to
deleted text end
deleted text begin $
deleted text end
deleted text begin 4,999,999
deleted text end
deleted text begin $
deleted text end
deleted text begin 300
deleted text end
deleted text begin $
deleted text end
deleted text begin 5,000,000 to
deleted text end
deleted text begin $
deleted text end
deleted text begin 9,999,999
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,000
deleted text end
deleted text begin $
deleted text end
deleted text begin 10,000,000 to
deleted text end
deleted text begin $
deleted text end
deleted text begin 19,999,999
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,000
deleted text end
deleted text begin $
deleted text end
deleted text begin 20,000,000 or more
deleted text end
deleted text begin $
deleted text end
deleted text begin 5,000
deleted text end
new text begin less than
new text end
new text begin $
new text end
new text begin 830,000
new text end
new text begin $
new text end
new text begin 0
new text end
new text begin $
new text end
new text begin 830,000 to
new text end
new text begin $
new text end
new text begin 1,659,999
new text end
new text begin $
new text end
new text begin 170
new text end
new text begin $
new text end
new text begin 1,660,000 to
new text end
new text begin $
new text end
new text begin 8,319,999
new text end
new text begin $
new text end
new text begin 500
new text end
new text begin $
new text end
new text begin 8,320,000 to
new text end
new text begin $
new text end
new text begin 16,649,999
new text end
new text begin $
new text end
new text begin 1,660
new text end
new text begin $
new text end
new text begin 16,650,000 to
new text end
new text begin $
new text end
new text begin 33,299,999
new text end
new text begin $
new text end
new text begin 3,330
new text end
new text begin $
new text end
new text begin 33,300,000 or more
new text end
new text begin $
new text end
new text begin 8,320
new text end

(b) A tax is imposed for each taxable year on a corporation required to file a return
under section 289A.12, subdivision 3, that is treated as an "S" corporation under section
290.9725 and on a partnership required to file a return under section 289A.12, subdivision
3
, other than a partnership that derives over 80 percent of its income from farming. The
tax imposed under this paragraph is due on or before the due date of the return for the
taxpayer due under section 289A.18, subdivision 1. The commissioner shall prescribe
the return to be used for payment of this tax. The tax under this paragraph is equal to
the following amounts:

If the sum of the S corporation's or
partnership's Minnesota property,
payrolls, and sales or receipts is:
the tax equals:
deleted text begin less than
deleted text end
deleted text begin $
deleted text end
deleted text begin 500,000
deleted text end
deleted text begin $
deleted text end
deleted text begin 0
deleted text end
deleted text begin $
deleted text end
deleted text begin 500,000 to
deleted text end
deleted text begin $
deleted text end
deleted text begin 999,999
deleted text end
deleted text begin $
deleted text end
deleted text begin 100
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,000,000 to
deleted text end
deleted text begin $
deleted text end
deleted text begin 4,999,999
deleted text end
deleted text begin $
deleted text end
deleted text begin 300
deleted text end
deleted text begin $
deleted text end
deleted text begin 5,000,000 to
deleted text end
deleted text begin $
deleted text end
deleted text begin 9,999,999
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,000
deleted text end
deleted text begin $
deleted text end
deleted text begin 10,000,000 to
deleted text end
deleted text begin $
deleted text end
deleted text begin 19,999,999
deleted text end
deleted text begin $
deleted text end
deleted text begin 2,000
deleted text end
deleted text begin $
deleted text end
deleted text begin 20,000,000 or more
deleted text end
deleted text begin $
deleted text end
deleted text begin 5,000
deleted text end
new text begin less than
new text end
new text begin $
new text end
new text begin 830,000
new text end
new text begin $
new text end
new text begin 0
new text end
new text begin $
new text end
new text begin 830,000 to
new text end
new text begin $
new text end
new text begin 1,659,999
new text end
new text begin $
new text end
new text begin 170
new text end
new text begin $
new text end
new text begin 1,660,000 to
new text end
new text begin $
new text end
new text begin 8,319,999
new text end
new text begin $
new text end
new text begin 500
new text end
new text begin $
new text end
new text begin 8,320,000 to
new text end
new text begin $
new text end
new text begin 16,649,999
new text end
new text begin $
new text end
new text begin 1,660
new text end
new text begin $
new text end
new text begin 16,650,000 to
new text end
new text begin $
new text end
new text begin 33,299,999
new text end
new text begin $
new text end
new text begin 3,330
new text end
new text begin $
new text end
new text begin 33,300,000 or more
new text end
new text begin $
new text end
new text begin 8,320
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, 2008.
new text end

Sec. 27.

Minnesota Statutes 2008, section 290.0922, subdivision 3, is amended to read:


Subd. 3.

Definitions.

(a) "Minnesota sales or receipts" means the total sales
apportioned to Minnesota pursuant to section 290.191, subdivision 5, the total receipts
attributed to Minnesota pursuant to section 290.191, subdivisions 6 to 8, and/or the
total sales or receipts apportioned or attributed to Minnesota pursuant to any other
apportionment formula applicable to the taxpayer.

(b) "Minnesota property" means total Minnesota tangible property as provided in
section 290.191, subdivisions 9 to 11, any other tangible property located in Minnesotadeleted text begin,
but does not include: (1) property located in a job opportunity building zone designated
under section 469.314, (2) property of a qualified business located in a biotechnology and
health sciences industry zone designated under section 469.334, or (3) for taxable years
beginning during the duration of the zone, property of a qualified business located in the
international economic development zone designated under section 469.322
deleted text end. Intangible
property shall not be included in Minnesota property for purposes of this section.
Taxpayers who do not utilize tangible property to apportion income shall nevertheless
include Minnesota property for purposes of this section. On a return for a short taxable
year, the amount of Minnesota property owned, as determined under section 290.191,
shall be included in Minnesota property based on a fraction in which the numerator is the
number of days in the short taxable year and the denominator is 365.

(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section
290.191, subdivision 12deleted text begin, but does not include: (1) job opportunity building zone payrolls
under section 469.310, subdivision 8, (2) biotechnology and health sciences industry zone
payrolls under section 469.330, subdivision 8, or (3) for taxable years beginning during
the duration of the zone, international economic development zone payrolls under section
469.321, subdivision 9
deleted text end. Taxpayers who do not utilize payrolls to apportion income shall
nevertheless include Minnesota payrolls for purposes of this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2009.
new text end

Sec. 28.

Minnesota Statutes 2008, section 290.0922, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin Inflation adjustment. new text end

new text begin The commissioner shall adjust the dollar amounts
of both the fee and the property, payrolls, and sales or receipts thresholds in subdivision
1 by the percentage determined pursuant to the provisions of section 1(f) of the Internal
Revenue Code, except that in section 1(f)(3)(B) the word "2008" must be substituted for
the word "1992." For 2010, the commissioner shall then determine the percent change from
the 12 months ending on August 31, 2008, to the 12 months ending on August 31, 2009,
and in each subsequent year, from the 12 months ending on August 31, 2008, to the 12
months ending on August 31 of the year preceding the taxable year. The determination of
the commissioner pursuant to this subdivision is not a "rule" subject to the Administrative
Procedure Act contained in chapter 14. The fee amounts as adjusted must be rounded to
the nearest $10 and the threshold amounts must be adjusted to the nearest $10,000. For
fee amounts that end in $5, the amount is rounded up to the nearest $10 and for threshold
amounts that end in $5,000, the amount is rounded up to the nearest $10,000.
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, 2009.
new text end

Sec. 29.

Minnesota Statutes 2008, section 290.17, subdivision 2, is amended to read:


Subd. 2.

Income not derived from conduct of a trade or business.

The income of
a taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
business must be assigned in accordance with paragraphs (a) to (f):

(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in
section 3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the
extent that, the work of the employee is performed within it; all other income from such
sources is treated as income from sources without this state.

Severance pay shall be considered income from labor or personal or professional
services.

(2) In the case of an individual who is a nonresident of Minnesota and who is an
athlete or entertainer, income from compensation for labor or personal services performed
within this state shall be determined in the following manner:

(i) The amount of income to be assigned to Minnesota for an individual who is a
nonresident salaried athletic team employee shall be determined by using a fraction in
which the denominator contains the total number of days in which the individual is under
a duty to perform for the employer, and the numerator is the total number of those days
spent in Minnesota. For purposes of this paragraph, off-season training activities, unless
conducted at the team's facilities as part of a team imposed program, are not included in
the total number of duty days. Bonuses earned as a result of play during the regular season
or for participation in championship, play-off, or all-star games must be allocated under
the formula. Signing bonuses are not subject to allocation under the formula if they are
not conditional on playing any games for the team, are payable separately from any other
compensation, and are nonrefundable; and

(ii) The amount of income to be assigned to Minnesota for an individual who is a
nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's
athletic or entertainment performance in Minnesota shall be determined by assigning to
this state all income from performances or athletic contests in this state.

(3) For purposes of this section, amounts received by a nonresident as "retirement
income" as defined in section (b)(1) of the State Income Taxation of Pension Income
Act, Public Law 104-95, are not considered income derived from carrying on a trade
or business or from wages or other compensation for work an employee performed in
Minnesota, and are not taxable under this chapter.

(b) Income or gains from tangible property located in this state that is not employed
in the business of the recipient of the income or gains must be assigned to this state.

(c) Income or gains from intangible personal property not employed in the business
of the recipient of the income or gains must be assigned to this state if the recipient of the
income or gains is a resident of this state or is a resident trust or estate.

Gain on the sale of a partnership interest is allocable to this state in the ratio of the
original cost of partnership tangible property in this state to the original cost of partnership
tangible property everywhere, determined at the time of the sale. If more than 50 percent
of the value of the partnership's assets consists of intangibles, gain or loss from the sale
of the partnership interest is allocated to this state in accordance with the sales factor of
the partnership for its first full tax period immediately preceding the tax period of the
partnership during which the partnership interest was sold.

new text begin Gain on the sale of an interest in a single member limited liability company that
is disregarded for federal income tax purposes is allocable to this state as if the single
member limited liability company did not exist and the assets of the limited liability
company are personally owned by the sole member.
new text end

Gain on the sale of goodwill or income from a covenant not to compete that is
connected with a business operating all or partially in Minnesota is allocated to this state
to the extent that the income from the business in the year preceding the year of sale was
assignable to Minnesota under subdivision 3.

When an employer pays an employee for a covenant not to compete, the income
allocated to this state is in the ratio of the employee's service in Minnesota in the calendar
year preceding leaving the employment of the employer over the total services performed
by the employee for the employer in that year.

(d) Income from winnings on a bet made by an individual while in Minnesota is
assigned to this state. In this paragraph, "bet" has the meaning given in section 609.75,
subdivision 2
, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).

(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.

(f) For the purposes of this section, working as an employee shall not be considered
to be conducting a trade or business.

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2008, section 290.17, subdivision 4, is amended to read:


Subd. 4.

Unitary business principle.

(a) If a trade or business conducted wholly
within this state or partly within and partly without this state is part of a unitary business,
the entire income of the unitary business is subject to apportionment pursuant to section
290.191. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary
business is considered to be derived from any particular source and none may be allocated
to a particular place except as provided by the applicable apportionment formula. The
provisions of this subdivision do not apply to business income subject to subdivision 5,
income of an insurance company, or income of an investment company determined under
section 290.36.

(b) The term "unitary business" means business activities or operations which
result in a flow of value between them. The term may be applied within a single legal
entity or between multiple entities and without regard to whether each entity is a sole
proprietorship, a corporation, a partnership or a trust.

(c) Unity is presumed whenever there is unity of ownership, operation, and use,
evidenced by centralized management or executive force, centralized purchasing,
advertising, accounting, or other controlled interaction, but the absence of these
centralized activities will not necessarily evidence a nonunitary business. Unity is also
presumed when business activities or operations are of mutual benefit, dependent upon or
contributory to one another, either individually or as a group.

(d) Where a business operation conducted in Minnesota is owned by a business
entity that carries on business activity outside the state different in kind from that
conducted within this state, and the other business is conducted entirely outside the state, it
is presumed that the two business operations are unitary in nature, interrelated, connected,
and interdependent unless it can be shown to the contrary.

(e) Unity of ownership is not deemed to exist when a corporation is involved unless
that corporation is a member of a group of two or more business entities and more than 50
percent of the voting stock of each member of the group is directly or indirectly owned
by a common owner or by common owners, either corporate or noncorporate, or by one
or more of the member corporations of the group. For this purpose, the term "voting
stock" shall include membership interests of mutual insurance holding companies formed
under section 66A.40.

(f) The net income and apportionment factors under section 290.191 or 290.20 of
foreign corporations and other foreign entities which are part of a unitary business shall
not be included in the net income or the apportionment factors of the unitary business.
A foreign corporation or other foreign entity which is required to file a return under this
chapter shall file on a separate return basis. deleted text beginThe net income and apportionment factors
under section 290.191 or 290.20 of foreign operating corporations shall not be included in
the net income or the apportionment factors of the unitary business except as provided in
paragraph (g).
deleted text end

deleted text begin (g) The adjusted net income of a foreign operating corporation shall be deemed to
be paid as a dividend on the last day of its taxable year to each shareholder thereof, in
proportion to each shareholder's ownership, with which such corporation is engaged in
a unitary business. Such deemed dividend shall be treated as a dividend under section
290.21, subdivision 4.
deleted text end

deleted text begin Dividends actually paid by a foreign operating corporation to a corporate shareholder
which is a member of the same unitary business as the foreign operating corporation shall
be eliminated from the net income of the unitary business in preparing a combined report
for the unitary business. The adjusted net income of a foreign operating corporation
shall be its net income adjusted as follows:
deleted text end

deleted text begin (1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto
Rico, or a United States possession or political subdivision of any of the foregoing shall
be a deduction; and
deleted text end

deleted text begin (2) the subtraction from federal taxable income for payments received from foreign
corporations or foreign operating corporations under section 290.01, subdivision 19d,
clause (10), shall not be allowed.
deleted text end

deleted text begin If a foreign operating corporation incurs a net loss, neither income nor deduction
from that corporation shall be included in determining the net income of the unitary
business.
deleted text end

deleted text begin (h)deleted text endnew text begin (g)new text end For purposes of determining the net income of a unitary business and the
factors to be used in the apportionment of net income pursuant to section 290.191 or
290.20, there must be included only the income and apportionment factors of domestic
corporations or other domestic entities deleted text beginother than foreign operating corporationsdeleted text end that are
determined to be part of the unitary business pursuant to this subdivision, notwithstanding
that foreign corporations or other foreign entities might be included in the unitary business.

deleted text begin (i)deleted text endnew text begin (h)new text end Deductions for expenses, interest, or taxes otherwise allowable under
this chapter that are connected with or allocable against dividendsdeleted text begin, deemed dividends
described in paragraph (g), or royalties, fees, or other like income described in section
290.01, subdivision 19d, clause (10),
deleted text end shall not be disallowed.

deleted text begin (j)deleted text endnew text begin (i)new text end Each corporation or other entity, except a sole proprietorship, that is part of
a unitary business must file combined reports as the commissioner determines. On the
reports, all intercompany transactions between entities included pursuant to paragraph
deleted text begin (h)deleted text endnew text begin (g)new text end must be eliminated and the entire net income of the unitary business determined in
accordance with this subdivision is apportioned among the entities by using each entity's
Minnesota factors for apportionment purposes in the numerators of the apportionment
formula and the total factors for apportionment purposes of all entities included pursuant
to paragraph deleted text begin(h)deleted text endnew text begin (g)new text end in the denominators of the apportionment formula.

deleted text begin (k)deleted text endnew text begin (j)new text end If a corporation has been divested from a unitary business and is included in a
combined report for a fractional part of the common accounting period of the combined
report:

(1) its income includable in the combined report is its income incurred for that part
of the year determined by proration or separate accounting; and

(2) its sales, property, and payroll included in the apportionment formula must
be prorated or accounted for separately.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 31.

Minnesota Statutes 2008, section 290.191, subdivision 2, is amended to read:


Subd. 2.

Apportionment formula of general application.

deleted text begin(a)deleted text end Except for those
trades or businesses required to use a different formula under subdivision 3 or section
290.36, and for those trades or businesses that receive permission to use some other
method under section 290.20 or under subdivision 4, a trade or business required to
apportion its net income must apportion its income to this state on the basis of the
deleted text begin percentage obtained by taking the sum of:
deleted text end

deleted text begin (1) the percent for the sales factor under paragraph (b) of thedeleted text end percentage which
the sales made within this state in connection with the trade or business during the tax
period are of the total sales wherever made in connection with the trade or business during
the tax perioddeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (2) the percent for the property factor under paragraph (b) of the percentage which
the total tangible property used by the taxpayer in this state in connection with the trade or
business during the tax period is of the total tangible property, wherever located, used by
the taxpayer in connection with the trade or business during the tax period; and
deleted text end

deleted text begin (3) the percent for the payroll factor under paragraph (b) of the percentage which
the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor
performed in this state in connection with the trade or business during the tax period are
of the taxpayer's total payrolls paid or incurred in connection with the trade or business
during the tax period.
deleted text end

deleted text begin (b) For purposes of paragraph (a) and subdivision 3, the following percentages apply
for the taxable years specified:
deleted text end

deleted text begin Taxable years beginning
during calendar year
deleted text end
deleted text begin Sales factor
percent
deleted text end
deleted text begin Property factor
percent
deleted text end
deleted text begin Payroll factor
percent
deleted text end
deleted text begin 2007
deleted text end
deleted text begin 78
deleted text end
deleted text begin 11
deleted text end
deleted text begin 11
deleted text end
deleted text begin 2008
deleted text end
deleted text begin 81
deleted text end
deleted text begin 9.5
deleted text end
deleted text begin 9.5
deleted text end
deleted text begin 2009
deleted text end
deleted text begin 84
deleted text end
deleted text begin 8
deleted text end
deleted text begin 8
deleted text end
deleted text begin 2010
deleted text end
deleted text begin 87
deleted text end
deleted text begin 6.5
deleted text end
deleted text begin 6.5
deleted text end
deleted text begin 2011
deleted text end
deleted text begin 90
deleted text end
deleted text begin 5
deleted text end
deleted text begin 5
deleted text end
deleted text begin 2012
deleted text end
deleted text begin 93
deleted text end
deleted text begin 3.5
deleted text end
deleted text begin 3.5
deleted text end
deleted text begin 2013
deleted text end
deleted text begin 96
deleted text end
deleted text begin 2
deleted text end
deleted text begin 2
deleted text end
deleted text begin 2014 and later calendar years
deleted text end
deleted text begin 100
deleted text end
deleted text begin 0
deleted text end
deleted text begin 0
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 32.

Minnesota Statutes 2008, section 290.191, subdivision 3, is amended to read:


Subd. 3.

Apportionment formula for financial institutions.

Except for an
investment company required to apportion its income under section 290.36, a financial
institution that is required to apportion its net income must apportion its net income to this
state on the basis of the percentage deleted text beginobtained by taking the sum of:
deleted text end

deleted text begin (1) the percent for the sales factor under subdivision 2, paragraph (b), of the
percentage
deleted text end which the receipts from within this state in connection with the trade or
business during the tax period are of the total receipts in connection with the trade or
business during the tax period, from wherever deriveddeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (2) the percent for the property factor under subdivision 2, paragraph (b), of the
percentage which the sum of the total tangible property used by the taxpayer in this
state and the intangible property owned by the taxpayer and attributed to this state in
connection with the trade or business during the tax period is of the sum of the total
tangible property, wherever located, used by the taxpayer and the intangible property
owned by the taxpayer and attributed to all states in connection with the trade or business
during the tax period; and
deleted text end

deleted text begin (3) the percent for the payroll factor under subdivision 2, paragraph (b), of the
percentage which the taxpayer's total payrolls paid or incurred in this state or paid in
respect to labor performed in this state in connection with the trade or business during
the tax period are of the taxpayer's total payrolls paid or incurred in connection with
the trade or business during the tax period.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 33.

Minnesota Statutes 2008, section 290A.03, subdivision 15, as amended by
Laws 2009, chapter 12, article 1, section 10, is amended to read:


Subd. 15.

Internal Revenue Code.

"Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through deleted text beginDecember 31, 2008deleted text endnew text begin March 31, 2009new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refunds based on
property taxes payable after December 31, 2009, and rent paid after December 31, 2008,
and thereafter.
new text end

Sec. 34.

Minnesota Statutes 2008, section 291.005, subdivision 1, as amended by Laws
2009, chapter 12, article 1, section 11, is amended to read:


Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following
terms used in this chapter shall have the following meanings:

(1) "Federal gross estate" means the gross estate of a decedent as valued and
otherwise determined for federal estate tax purposes by federal taxing authorities pursuant
to the provisions of the Internal Revenue Code.

(2) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included therein which has its situs outside Minnesota,
and (b) including therein any property omitted from the federal gross estate which is
includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
authorities.

(3) "Personal representative" means the executor, administrator or other person
appointed by the court to administer and dispose of the property of the decedent. If there
is no executor, administrator or other person appointed, qualified, and acting within this
state, then any person in actual or constructive possession of any property having a situs in
this state which is included in the federal gross estate of the decedent shall be deemed
to be a personal representative to the extent of the property and the Minnesota estate tax
due with respect to the property.

(4) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.

(5) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.

(6) "Situs of property" means, with respect to real property, the state or country in
which it is located; with respect to tangible personal property, the state or country in which
it was normally kept or located at the time of the decedent's death; and with respect to
intangible personal property, the state or country in which the decedent was domiciled
at death.new text begin For a nonresident decedent with an ownership interest in a pass-through entity
with assets that include real or tangible personal property, situs of the real or tangible
personal property is determined as if the pass-through entity does not exist and the real
or tangible personal property is personally owned by the decedent. If the pass-through
entity is owned by a person or persons in addition to the decedent, ownership of the
property is attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.
new text end

(7) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(8) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through deleted text beginDecember 31, 2008deleted text endnew text begin March 31, 2009new text end.

(9) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
defined by section 2011(b)(3) of the Internal Revenue Code, increased bynew text begin:new text end

new text begin (i) new text endthe amount of deduction for state death taxes allowed under section 2058 of
the Internal Revenue Codedeleted text begin.deleted text endnew text begin; and
new text end

new text begin (ii) the amount of taxable gifts as defined in section 292.16 and made by the
decedent within three years of the decedent's date of death.
new text end

new text begin (10) "Pass-through entity" includes the following:
new text end

new text begin (i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;
new text end

new text begin (ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
new text end

new text begin (iii) a single member limited liability company or similar entity, regardless of
whether it is taxed as an association or is disregarded for federal income tax purposes
under Code of Federal Regulations, title 26, section 301.7701-3; or
new text end

new text begin (iv) a trust.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective at the same time as the
changes were effective for federal purposes, and except that the changes to clauses (6) to
(10) are effective for decedents dying after December 31, 2008.
new text end

Sec. 35.

Minnesota Statutes 2008, section 291.03, subdivision 1, is amended to read:


Subdivision 1.

Tax amount.

(a) The tax imposed shall be an amount equal to the
proportion of the maximum credit for state death taxes computed under section 2011 of
the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of federal
adjusted taxable estate, as the Minnesota gross estate bears to the value of the federal
gross estate. new text beginThe tax is reduced by the gift tax paid by the decedent under section 292.17
on gifts included in the Minnesota adjusted gross estate.
new text end

(b) The tax determined under this subdivision must not be greater than the sum of
the following amounts multiplied by a fraction, the numerator of which is the Minnesota
gross estate and the denominator of which is the federal gross estate:

(1) the rates and brackets under section 2001(c) of the Internal Revenue Code
multiplied by the sum of:

(i) the taxable estate, as defined under section 2051 of the Internal Revenue Code;
plus

(ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue
Code; less

(2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue
Code; and less

(3) the federal credit allowed under section 2010 of the Internal Revenue Code.

(c) For purposes of this subdivision, "Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through December 31, 2000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2008.
new text end

Sec. 36.

new text begin [292.16] DEFINITIONS.
new text end

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

new text begin (b) The definitions of terms defined in section 291.005 apply.
new text end

new text begin (c) "Taxable gifts" means:
new text end

new text begin (1) the transfers by gift which are included in taxable gifts for federal gift tax
purposes under the following sections of the Internal Revenue Code:
new text end

new text begin (i) section 2503;
new text end

new text begin (ii) sections 2511 to 2514; and
new text end

new text begin (iii) sections 2516 to 2519; less
new text end

new text begin (2) the deductions allowed in sections 2522 to 2524 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 gifts made after June
30, 2009.
new text end

Sec. 37.

new text begin [292.17] GIFT TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Imposition. new text end

new text begin (a) A tax is imposed on the transfer of property by gift
by any individual resident or nonresident in an amount equal to ten percent of the amount
of the taxable gift.
new text end

new text begin (b) The donor is liable for payment of the tax. If the gift tax is not paid when due,
the recipient of any gift is personally liable for the tax to the extent of the value of the gift.
new text end

new text begin Subd. 2. new text end

new text begin Lifetime credit. new text end

new text begin A credit of $100,000 is allowed against the tax imposed
under this section. This credit applies to the cumulative amount of taxable gifts made
by the donor during the donor's lifetime.
new text end

new text begin Subd. 3. new text end

new text begin Out-of-state gifts. new text end

new text begin Taxable gifts exclude the transfer of tangible personal
property and real property having a situs outside this state. "Situs of taxable gifts" means,
with respect to real property, the state or country in which it is located; with respect to
tangible personal property, the state or country in which it was normally kept or located
at the time of making the gift; and with respect to intangible personal property, the state
or country in which the individual was domiciled at the time of making the gift. For a
nonresident individual making a gift of an ownership interest in a pass-through entity
with assets that include real or tangible personal property, situs of the real or tangible
personal property is determined as if the pass-through entity does not exist and the real or
tangible personal property is personally owned by the individual making the gift. If the
pass-through entity is owned by a person or persons in addition to the individual making
the gift, ownership of the property is attributed to the individual in proportion to the
individual's capital ownership share of the pass-through entity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable gifts made after June
30, 2009.
new text end

Sec. 38.

new text begin [292.18] RETURNS.
new text end

new text begin (a) Any individual who makes a taxable gift during the taxable year shall file a gift
tax return in the form and manner prescribed by the commissioner.
new text end

new text begin (b) If the donor dies before filing the return, the executor of the donor's will or
the administrator of the donor's estate shall file the return. If the donor becomes legally
incompetent before filing the return, the guardian or conservator shall file the return.
new text end

new text begin (c) The return must include:
new text end

new text begin (1) each gift made during the calendar year which is to be included in computing the
taxable gifts;
new text end

new text begin (2) the deductions claimed and allowable under section 292.16, paragraph (c),
clause (2);
new text end

new text begin (3) a description of the gift, and the donee's name, address, and Social Security
number;
new text end

new text begin (4) the fair market value of gifts not made in money; and
new text end

new text begin (5) any other information the commissioner requires to administer the gift tax.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable gifts made after June
30, 2009.
new text end

Sec. 39.

new text begin [292.19] FILING REQUIREMENTS.
new text end

new text begin Gift tax returns must be filed by the April 15 following the close of the calendar
year, except if a gift is made during the calendar year in which the donor dies, the return
for the donor must be filed by the last date, including extensions, for filing the gift tax
return for federal gift tax purposes for the donor.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable gifts made after June
30, 2009.
new text end

Sec. 40.

new text begin [292.20] APPRAISAL OF PROPERTY; DECLARATION BY DONOR.
new text end

new text begin The commissioner may require the donor or the donee to show the property subject
to the tax under section 292.17 to the commissioner upon demand and may employ
a suitable person to appraise the property. The donor shall submit a declaration, in a
form prescribed by the commissioner and including any certification required by the
commissioner, that the property shown by the donor on the gift tax return includes all of
the property transferred by gift for the calendar year and not excluded from taxable gifts
under section 292.16, paragraph (c), clause (2).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable gifts made after June
30, 2009.
new text end

Sec. 41.

new text begin [292.21] ADMINISTRATIVE PROVISIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Payment of tax; penalty for late payment. new text end

new text begin The tax imposed under
section 292.17 is due and payable to the commissioner by the April 15 following the close
of the calendar year during which the gift was made. The return required under section
292.18 must be included with the payment. If a taxable gift is made during the calendar
year in which the donor dies, the due date is the last date, including extensions, for filing
the gift tax return for federal gift tax purposes for the donor. If any person fails to pay the
tax due within the time specified under this section, a penalty applies equal to ten percent
of the amount due and unpaid or $100, whichever is greater. The unpaid tax and penalty
bear interest at the rate under section 270C.40 from the due date of the return.
new text end

new text begin Subd. 2. new text end

new text begin Extensions. new text end

new text begin The commissioner may, for good cause, extend the time for
filing a gift tax return, if a written request is filed with a tentative return accompanied by a
payment of the tax, which is estimated in the tentative return, on or before the last day for
filing the return. Any person to whom an extension is granted must pay, in addition to the
tax, interest at the rate under section 270C.40 from the date on which the tax would have
been due without the extension.
new text end

new text begin Subd. 3. new text end

new text begin Changes in federal gift tax. new text end

new text begin If the amount of a taxpayer's taxable gifts
for federal gift tax purposes, as reported on the taxpayer's federal gift tax return for any
calendar year, is changed or corrected by the Internal Revenue Service or other officer
of the United States or other competent authority, the taxpayer shall report the change or
correction in federal taxable gifts within 180 days after the final determination of the
change or correction, and concede the accuracy of the determination or provide a letter
detailing how the federal determination is incorrect or does not change the Minnesota
gift tax. Any taxpayer filing an amended federal gift tax return shall also file within
180 days an amended return under this chapter and shall include any information the
commissioner requires. The time for filing the report or amended return may be extended
by the commissioner upon due cause shown. Notwithstanding any limitation of time in
this chapter, if, upon examination, the commissioner finds that the taxpayer is liable for
the payment of an additional tax, the commissioner shall, within a reasonable time from
the receipt of the report or amended return, notify the taxpayer of the amount of additional
tax, together with interest computed at the rate under section 270C.40 from the date when
the original tax was due and payable. Within 30 days of the mailing of the notice, the
taxpayer shall pay the commissioner the amount of the additional tax and interest. If, upon
examination of the report or amended return and related information, the commissioner
finds that the taxpayer has overpaid the tax due the state, the commissioner shall refund
the overpayment to the taxpayer.
new text end

new text begin Subd. 4. new text end

new text begin Application of federal rules. new text end

new text begin In administering the tax under this chapter,
the commissioner shall apply the provisions of sections 2701 to 2704 of the Internal
Revenue Code. The words "secretary or his delegate," as used in those sections of the
Internal Revenue Code, means the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable gifts made after June
30, 2009.
new text end

Sec. 42.

new text begin [292.22] CREDIT AGAINST ESTATE TAX.
new text end

new text begin A credit is allowed against the estate tax imposed under chapter 291 in the amount
of any tax imposed and paid under this chapter for a gift includable in the Minnesota
adjusted taxable estate of the donor under section 291.005.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable gifts made after June
30, 2009.
new text end

Sec. 43.

Minnesota Statutes 2008, section 469.315, is amended to read:


469.315 TAX INCENTIVES AVAILABLE IN ZONES.

Qualified businesses that operate in a job opportunity building zone, individuals who
invest in a qualified business that operates in a job opportunity building zone, and property
located in a job opportunity building zone qualify for:

deleted text begin (1) exemption from individual income taxes as provided under section 469.316;
deleted text end

deleted text begin (2) exemption from corporate franchise taxes as provided under section 469.317;deleted text end

deleted text begin (3)deleted text endnew text begin (1)new text end exemption from the state sales and use tax and any local sales and use taxes
on qualifying purchases as provided in section 297A.68, subdivision 37;

deleted text begin (4)deleted text endnew text begin (2)new text end exemption from the state sales tax on motor vehicles and any local sales tax
on motor vehicles as provided under section 297B.03;

deleted text begin (5)deleted text endnew text begin (3)new text end exemption from the property tax as provided in section 272.02, subdivision
64
;

deleted text begin (6)deleted text endnew text begin (4)new text end exemption from the wind energy production tax under section 272.029,
subdivision 7
; and

deleted text begin (7)deleted text endnew text begin (5)new text end the jobs credit allowed under section 469.318.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2009.
new text end

Sec. 44.

Minnesota Statutes 2008, section 469.3192, is amended to read:


469.3192 PROHIBITION AGAINST AMENDMENTS TO BUSINESS
SUBSIDY AGREEMENT.

new text begin (a) new text endExcept as authorized under new text beginparagraphs (b) and (c) or new text endsection 469.3191, under
no circumstance shall terms of any agreement required as a condition for eligibility for
benefits listed under section 469.315 be amended to change job creation, job retention,
or wage goals included in the agreement.

new text begin (b) A business may elect to void a business subsidy agreement permitting it to
qualify for benefits listed under section 469.315 within 30 days after enactment of section
46, effective for obligations under the agreement that apply to periods after December 31,
2008. The authority to void an agreement expires 180 days after enactment of section 46.
new text end

new text begin (c) A business that does not elect to void an agreement under paragraph (b) may
negotiate a modified or new business subsidy agreement to reflect the state's repeal of the
benefits of the individual income and corporate franchise tax exemptions under sections
469.316 and 469.317.
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. 45. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall identify and correct internal cross-references to sections
that are affected by section 46. The revisor may make changes necessary to correct the
punctuation, grammar, or structure of the remaining text to preserve its meaning.
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. 46. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2008, sections 289A.50, subdivision 10; 290.01, subdivision
6b; 290.06, subdivisions 33 and 34; 290.067, subdivisions 1, 2, 2a, 2b, 3, and 4; 290.0672;
290.0674; 290.0679; 290.0802; 290.0921, subdivision 7; 290.191, subdivision 4; and
290.491,
new text end new text begin and new text end new text begin Laws 2009, chapter 3, section 1; and Laws 2009, chapter 12, article 1,
section 8,
new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2008, sections 272.02, subdivision 83; 290.06, subdivisions
24, 28, 30, 31, and 32; 297A.68, subdivisions 38 and 41; 469.316; 469.317; 469.321;
469.3215; 469.322; 469.323; 469.324; 469.325; 469.326; 469.327; 469.328; 469.329;
469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338;
469.339; 469.340; and 469.341,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective for taxable years beginning after
December 31, 2008. Paragraph (b) is effective for taxable years beginning after December
31, 2009.
new text end

ARTICLE 2

COUNTY REVENUE REFORM

Section 1.

Minnesota Statutes 2008, section 275.70, subdivision 3, is amended to read:


Subd. 3.

Local governmental unit.

"Local governmental unit" means a countydeleted text begin, or a
statutory or home rule charter city with a population greater than 2,500
deleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in calendar year
2009, payable in 2010 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2008, section 275.71, subdivision 2, is amended to read:


Subd. 2.

Levy limit base.

deleted text begin(a)deleted text end The levy limit base for a local governmental unit for
taxes levied in 2008 is its levy aid base from the previous year, subject to any adjustments
under section 275.72. For taxes levied in 2009 deleted text beginand 2010deleted text end, the levy limit base for a local
governmental unit is its adjusted levy limit base in the previous year, subject to any
adjustments under section 275.72.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in calendar year
2009, payable in 2010 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2008, section 275.71, subdivision 4, is amended to read:


Subd. 4.

Adjusted levy limit base.

For taxes levied in 2008 deleted text beginthrough 2010deleted text endnew text begin and 2009new text end,
the adjusted levy limit base is equal to the levy limit base computed under subdivision 2
or section 275.72, multiplied by:

(1) one plus the lesser of 3.9 percent or the percentage growth in the implicit price
deflator;

(2) one plus a percentage equal to 50 percent of the percentage increase in the number
of households, if any, for the most recent 12-month period for which data is available; and

(3) one plus a percentage equal to 50 percent of the percentage increase in the
taxable market value of the jurisdiction due to new construction of class 3 property, as
defined in section 273.13, subdivision 4, except for state-assessed utility and railroad
property, for the most recent year for which data is available.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in calendar year
2009, payable in 2010 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2008, section 275.71, subdivision 5, is amended to read:


Subd. 5.

Property tax levy limit.

For taxes levied in deleted text begin2008 through 2010deleted text endnew text begin 2009new text end, the
property tax levy limit for a local governmental unit is equal to its adjusted levy limit
base determined under subdivision 4 plus any additional levy authorized under section
275.73, which is levied against net tax capacity, reduced by the sum of (i) the total amount
of aids and reimbursements that the local governmental unit is certified to receive under
sections 477A.011 to 477A.014, (ii) new text beginthe amount of aid reduction under section 477A.0124,
subdivision 6, paragraph (c), (iii)
new text endtaconite aids under sections 298.28 and 298.282
including any aid which was required to be placed in a special fund for expenditure in the
next succeeding year, deleted text begin(iii)deleted text endnew text begin (iv)new text end estimated payments to the local governmental unit under
section 272.029, adjusted for any error in estimation in the preceding year, and deleted text begin(iv)deleted text endnew text begin (v)new text end
aids under section 477A.16.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in calendar year
2009, payable in 2010 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2008, section 297A.99, subdivision 1, is amended to read:


Subdivision 1.

Authorization; scope.

(a) A political subdivision of this state may
impose a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3)
new text begin under section 297A.994, or (4) new text endif permitted by special law enacted prior to May 20, 2008,
or deleted text begin(4)deleted text endnew text begin (5)new text end if the political subdivision enacted and imposed the tax before January 1, 1982,
and its predecessor provision.

(b) This section governs the imposition of a general sales tax by the political
subdivision. The provisions of this section preempt the provisions of any special law:

(1) enacted before June 2, 1997, or

(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by reference.

(c) This section does not apply to or preempt a sales tax on motor vehicles or a
special excise tax on motor vehicles.

(d) Until after May 31, 2010, a political subdivision may not advertise, promote,
expend funds, or hold a referendum to support imposing a local option sales tax unless
it is for extension of an existing tax or the tax was authorized by a special law enacted
prior to May 20, 2008.

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 [297A.994] COUNTY LOCAL OPTION SALES TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization; rates. new text end

new text begin Notwithstanding section 297A.99,
subdivisions 2, 3, and 5, or 477A.016, or any other law, a county board may, by resolution,
impose a general sales tax of one-half of one percent on sales and uses taxable under this
chapter. In addition, an excise tax of $20 per motor vehicle is imposed on motor vehicles,
purchased or acquired from any person engaged within the county in the business of selling
motor vehicles at retail if a county imposes a local sales and use tax under this section.
new text end

new text begin Subd. 2. new text end

new text begin Application of election requirement. new text end

new text begin (a) Imposition of the tax under this
section is not subject to the requirements of section 297A.99, subdivision 3.
new text end

new text begin (b) Before imposing the tax under this section, the county must publish a notice of
its intention to impose the tax and the date and time of a hearing to obtain public comment
on the matter. The notice must be published in the official newspaper of the county, or
in a newspaper of general circulation in the county. The notice must be published at
least 14 days before the date of the hearing, but not more than 28 days. Following the
public hearing the county board may determine to take no further action, or may adopt
a resolution imposing the tax. If the county intends to impose the tax it must notify the
commissioner of revenue of its intent by September 1, 2009.
new text end

new text begin (c) A county may impose the tax only upon obtaining the approval of the majority
of voters voting on the question of imposing the tax, if a petition requesting a vote on
imposition of the tax is signed by voters equal to the greater of (1) 500, or (2) ten percent
of the votes cast in the county at the last general election is filed with the county auditor
within 30 days after the public hearing. The vote on the tax may be held at a general or
special election. The commissioner of revenue shall prepare a suggested form of the
question to be presented at the election.
new text end

new text begin Subd. 3. new text end

new text begin Use of revenues. new text end

new text begin Revenues from the tax imposed under this section
must first be used to fund obligations under section 297A.9945. Remaining revenues
are deposited in the county general fund.
new text end

new text begin Subd. 4. new text end

new text begin Administration, collection, and enforcement. new text end

new text begin The administration,
collection, and enforcement of the provisions in section 297A.99, subdivisions 4, and 6 to
12, apply to a tax imposed under this section.
new text end

new text begin Subd. 5. new text end

new text begin Termination. new text end

new text begin A county may terminate a tax imposed under this section
upon resolution of the county board and notification to the commissioner of revenue, if
all obligations under section 297A.9945 have been paid.
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 begin [297A.9945] EFFECT ON EXISTING LOCAL SALES TAXES;
SATISFACTION OF PREEXISTING OBLIGATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Preemption of preexisting local sales taxes. new text end

new text begin (a) Notwithstanding
section 297A.99 or any other law or local ordinance to the contrary, all general local
sales and use taxes in a county or a part of a county is preempted on the day that a
county local sales tax under section 297A.994 takes effect, except the following taxes
are not preempted:
new text end

new text begin (1) a local tax imposed under section 297A.992 or 297A.993;
new text end

new text begin (2) a local sales tax authorized by special law in a city of the first class;
new text end

new text begin (3) a local sales tax authorized by a special law in a city with a population in 2007 of
at least 100,000, provided that it complies with paragraph (c); and
new text end

new text begin (4) a local sales tax in a county as authorized under Laws 2008, chapter 366, article
7, section 18.
new text end

new text begin (b) A local sales tax that is imposed by a city located in two or more counties is
preempted if one or more counties in which the city is located impose the county tax. A
replacement tax must be imposed under subdivision 6 in any portion of the city located in
a county that has not imposed the tax under section 297A.994.
new text end

new text begin (c) If a city with a population in 2007 of at least 100,000 would like to maintain an
existing local sales tax, the city council must pass a resolution to that effect within two
months of the enactment of this section. The city council must provide a copy of the
resolution to the commissioner of revenue and to the county in which the city is located
within five business days of the passage of the resolution.
new text end

new text begin Subd. 2. new text end

new text begin County payment to cities; forgone sales tax revenue. new text end

new text begin (a) If a local
sales tax imposed in a city located partially or totally within a county is preempted under
subdivision 1, the county shall pay a portion of its local sales tax revenues, as provided
under subdivision 4 or 5, to the city to fund obligations allowed under the law authorizing
the city tax. The county must make these payments to the city within five business days
after it receives the revenues from the commissioner.
new text end

new text begin (b) If the local sales tax was imposed under a joint powers agreement in cities
located in more than one county, the share of the obligation to be funded by the county
must be determined under subdivision 5.
new text end

new text begin (c) The requirement to make these payments ceases on the earliest of the following:
new text end

new text begin (1) the date on which the city tax was required to expire under the special law
authorizing it;
new text end

new text begin (2) when the city has received sufficient revenues from its tax and from payments
under this section to pay in full or to defease debt obligations issued by the city under the
law authorizing the city sales tax and to pay any additional spending obligations allowed
under the special law and not funded by the issuance of debt obligations; or
new text end

new text begin (3) the city becomes a city of the first class and imposes a city sales tax.
new text end

new text begin Subd. 3. new text end

new text begin Dedication of tax to fund county projects. new text end

new text begin If a county imposed local
sales tax is preempted under subdivision 1, the revenues from the tax imposed under
section 297A.994 are pledged first to pay and secure the bond obligations secured by and
to be paid with the revenues from the preempted county sales tax.
new text end

new text begin Subd. 4. new text end

new text begin Calculation of forgone revenue in cities located entirely within a
county.
new text end

new text begin For purposes of subdivision 2, the forgone revenue to be paid to the city located
entirely in a county imposing a tax under section 297A.994 is calculated as follows:
new text end

new text begin (1) in the first 12 months after the tax is preempted, the county shall make quarterly
payments to a city entirely located within the county equal to the amount that the city
received from the commissioner of revenue from the preempted tax in the corresponding
quarter in the previous year, multiplied by a percentage equal to the percentage change in
total state sales tax revenue in the previous quarter compared to the total state sales tax
revenue for the fifth preceding quarter; and
new text end

new text begin (2) in subsequent years, the county shall make quarterly payments to the city equal
to the payment made in the corresponding quarter in the previous year, multiplied by the
ratio of the total quarterly remittance to the county in the current year compared to the
total quarterly remittance to the county in the previous year.
new text end

new text begin Subd. 5. new text end

new text begin Calculation of forgone revenue in cities located partially within a
county.
new text end

new text begin (a) For purposes of subdivision 2, the forgone revenue to be paid to the city
located partially in a county imposing a tax under section 297A.994 is calculated as
provided in this subdivision.
new text end

new text begin (b) The commissioner of revenue shall determine the percentage of the city's local
sales tax revenue attributable to transactions located in the county. The commissioner
may consult with the county and the city to determine a reasonable percentage, or the
commissioner may set the percentage equal to the percentage of the city's market value
for the most recently available assessment year of class 3 property, except utility real and
personal property located in the county. The sum of the percentage of a city's local sales
tax revenue attributable to each county in which the city is located must equal 100 percent.
The determination of the commissioner is final.
new text end

new text begin (c) In the first 12 months after the tax is preempted, the county shall make quarterly
payments to a city partially located within the county equal to the amount that the city
received from the commissioner from the preempted tax in the corresponding quarter in
the previous year, multiplied by (1) a percentage equal to one plus the percentage change
in total state sales tax revenue in the previous quarter compared to the total state sales tax
revenue for the fifth preceding quarter, and (2) one plus the percentage calculated in
paragraph (b).
new text end

new text begin (d) In subsequent years, the county shall make quarterly payments to the city equal
to the payment made in the corresponding quarter in the previous year multiplied by the
ratio of the total quarterly remittance to the county in the current year compared to the
total quarterly remittance to the county in the previous year.
new text end

new text begin (e) A county's share of a city's obligations from the special law authorizing the city's
sales tax is equal to the total obligation under the special law multiplied by one plus the
percentage determined under paragraph (b).
new text end

new text begin Subd. 6. new text end

new text begin Establishment of special sales tax districts within certain cities. new text end

new text begin (a)
For any city located in two or more counties, if at least one county imposes a county
sales tax under subdivision 1, and at least one county does not impose a county sales tax,
a special sales tax district is established in the portion of the city that is not subject to
a county sales tax.
new text end

new text begin (b) The governing body of the city is the governing body of the special taxing district
and the special taxing district shall impose a replacement local sales tax by resolution
to take effect upon the preemption of the city's sales tax under subdivision 1. The
replacement tax must be imposed at the same rate as the city tax it replaces. Revenues
from the replacement tax are pledged to and may only be used for the purposes permitted
by law for the city sales tax, which it replaces. The authority to impose this tax expires
upon the city's receipt of sufficient revenues to pay the obligations to which the city sales
tax was pledged and other spending permitted by the law authorizing imposition of the
city sales tax from the sum of the following:
new text end

new text begin (1) the city sales tax;
new text end

new text begin (2) county payments of forgone sales tax revenues under this section; and
new text end

new text begin (3) the special taxing district sales tax.
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.

Minnesota Statutes 2008, section 477A.0124, is amended by adding a
subdivision to read:


new text begin Subd. 6. new text end

new text begin County program aid. new text end

new text begin (a) For calendar year 2010 and thereafter, a county's
program aid under this section is equal to (1) its county program aid amount certified for
aids payable in 2009 under this section, minus (2) an amount determined under paragraph
(b) or (c). A county's program aid shall not be less than zero.
new text end

new text begin (b) For a county that does not impose a tax under section 297A.994, the amount
subtracted under paragraph (a) is equal to 3.58 percent of the county's 2009 levy plus aid
revenue base. The "2009 levy plus aid revenue base" for a county is equal to the sum of
the county's certified property tax levy for taxes payable in 2009 plus the amount the
county was certified to receive in county program aid in 2009 under this section and
the amount the county was certified to receive in taconite aids in 2009 under sections
298.28 and 292.282, including any aid that was required to be placed in a special fund for
expenditure in the next succeeding year.
new text end

new text begin (c) For a county that imposes a tax under section 297A.994, the amount subtracted
under paragraph (a) is equal to (1) 50 percent of its net sales tax revenue for the preceding
12-month period in excess of the greater of (i) $70,000, or (ii) $7 per capita, plus (2) 25
percent of its net sales tax revenue for the preceding 12-month period in excess of the
greater of (i) $170,000, or (ii) $17 per capita.
new text end

new text begin (d) For purposes of this subdivision, "net sales tax revenue for the preceding
12-month period" means the sales tax revenue for the county for the 12-month period
ending July 1 of the year in which the aid under this section is certified minus its estimated
existing obligations under section 297A.9945 for the year in which the aid is paid. For
the first two years in which the aid is offset under this paragraph, the commissioner of
revenue shall estimate the offset based on available data regarding sales tax collections in
the county. Beginning with the third year in which the aid is offset under this paragraph,
the offset will be based on actual sales tax collections in the county in the 12-month period
ending July 1 of the year in which the aid is certified.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year
2010 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2008, section 477A.03, subdivision 2b, is amended to read:


Subd. 2b.

Counties.

(a) For aids payable in 2009 and thereafter, new text beginin addition to
new text endthe total aid payable under section deleted text begin477A.0124, subdivision 3, is $111,500,000 minus
one-half of the total aid amount determined under section 477A.0124, subdivision 5,
paragraph (b), subject to adjustment in subdivision 5. Each calendar year,
deleted text endnew text begin 477A.0124,
new text end $500,000 deleted text beginshall be retained bydeleted text endnew text begin is appropriated tonew text end the commissioner of revenue to make
reimbursements to the commissioner of finance for payments made under section
611.27new text begin; the reimbursement shall be used to defray the additional costs associated with
court-ordered counsel under section 611.27. $357,000 is appropriated to the commissioner
of revenue to make reimbursements to the commissioner of finance for the preparation of
local impact notes under section 3.987, and $7,000 is appropriated to the commissioner of
revenue to reimburse the commissioner of education for the preparation of local impact
notes for school districts under section 3.987
new text end. deleted text beginFor calendar year 2004, the amount shall
be in addition to the payments authorized under section 477A.0124, subdivision 1.
For calendar year 2005 and subsequent years, the amount shall be deducted from the
appropriation under this paragraph. The reimbursements shall be to defray the additional
costs associated with court-ordered counsel under section 611.27.
deleted text end new text beginThe commissioner of
finance shall annually use at least $150,000 of the $357,000 appropriation to contract with
the representative associations for counties, cities, towns, and school districts to establish
a local impact network of political subdivisions for preparing local impact notes that
provide information to the legislature as provided in section 270C.991, subdivision 7.
new text endAny
deleted text begin retaineddeleted text endnew text begin appropriatednew text end amounts not used for reimbursement deleted text beginin a year shall be included in
the next distribution of county need aid that is certified to the county auditors for the
purpose of property tax reduction for the next taxes payable year.
deleted text endnew text begin under this subdivision
shall be returned to the general fund.
new text end

(b) For aids payable in 2009 deleted text beginand thereafter, the total aid under section deleted text enddeleted text begin477A.0124,
subdivision 4
deleted text enddeleted text begin, is $116,132,923 minus one-half of the total aid amount determined under
deleted text enddeleted text beginsection deleted text enddeleted text begin477A.0124, subdivision 5deleted text enddeleted text begin, paragraph (b), subject to adjustment in subdivision
deleted text enddeleted text begin5. The commissioner of finance shall bill the commissioner of revenue for the cost of
deleted text enddeleted text beginpreparation of local impact notes as required by section deleted text enddeleted text begin3.987deleted text enddeleted text begin, not to exceed $207,000 in
deleted text enddeleted text beginfiscal year 2004 and thereafter. The commissioner of education shall bill the commissioner
deleted text enddeleted text beginof revenue for the cost of preparation of local impact notes for school districts as
required
deleted text enddeleted text beginby section deleted text enddeleted text begin3.987deleted text enddeleted text begin, not to exceed $7,000 in fiscal year 2004 and thereafter. The
commissioner
deleted text enddeleted text beginof revenue shall deduct the amounts billed under this paragraph from
the appropriation
deleted text enddeleted text beginunder this paragraph. The amounts deducted are appropriated to the
commissioner of
deleted text enddeleted text beginfinance and the commissioner of education for the preparation of local
impact notes.
deleted text endnew text begin, the total aid is the amount certified to be paid in 2009 under this subdivision,
subject to the reduction in section 477A.0133, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year
2009 and thereafter.
new text end

Sec. 10. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 477A.0124, subdivisions 3, 4, and 5, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year
2010 and thereafter.
new text end

ARTICLE 3

PROPERTY TAX REFORM, ACCOUNTABILITY, VALUE, AND
EFFICIENCY PROVISIONS

Section 1.

new text begin [6.90] COUNCIL ON LOCAL RESULTS AND INNOVATION.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The Council on Local Results and Innovation consists of
11 members, as follows:
new text end

new text begin (1) the state auditor;
new text end

new text begin (2) two persons who are not members of the legislature, appointed by the chair of the
Property and Local Sales Tax Division of the house of representatives Taxes Committee;
new text end

new text begin (3) two persons who are not members of the legislature, appointed by the designated
lead minority member of the Property and Local Sales Tax Division of the house of
representatives Taxes Committee;
new text end

new text begin (4) two persons who are not members of the legislature, appointed by the chair of
the Taxes Division on Property Taxes of the senate Taxes Committee;
new text end

new text begin (5) two persons who are not members of the legislature, appointed by the designated
lead minority member of the Taxes Division on Property Taxes of the senate Taxes
Committee;
new text end

new text begin (6) one person who is not a member of the legislature, appointed by the Association
of Minnesota Counties; and
new text end

new text begin (7) one person who is not a member of the legislature, appointed by the League
of Minnesota Cities.
new text end

new text begin Each appointment under clauses (2) to (5) must include one person with expertise
or interest in county government and one person with expertise or interest in city
government. The appointing authorities must use their best efforts to ensure that a majority
of council members have experience with local performance measurement systems. The
membership of the council must include geographically balanced representation as well as
representation balanced between large and small jurisdictions. The appointments under
clauses (2) to (7) must be made within two months of the date of enactment.
new text end

new text begin Appointees to the council under clauses (2) to (5) serve terms of four years, except
that one of each of the initial appointments under clauses (2) to (5) shall serve a term of
two years; each appointing agent must designate which appointee is serving the two-year
term. Subsequent appointments for members appointed under clauses (2) to (5) must
be made by the council, including appointments to replace any appointees who might
resign from the council prior to completion of their term. Appointees under clauses (2) to
(5) are not eligible to vote on appointing their successor, nor on the successors of other
appointees whose terms are expiring contemporaneously. In making appointments, the
council shall make all possible efforts to reflect the geographical distribution and meet the
qualifications of appointees required of the initial appointees. Subsequent appointments
for members appointed under clauses (6) and (7) must be made by the original appointing
authority. Appointees to the council under clauses (2) to (7) may serve no more than two
consecutive terms.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin (a) By February 15, 2010, the council shall develop a standard
set of approximately ten performance measures for counties and ten performance
measures for cities that will aid residents, taxpayers, and state and local elected officials
in determining the efficacy of counties and cities in providing services, and measure
residents' opinions of those services. In developing its measures, the council must solicit
input from private citizens. Counties and cities that elect to participate in the standard
measures system shall report their results to the state auditor under section 6.91, who
shall compile the results and make them available to all interested parties by publishing
them on the auditor's Web site and report them to the legislative tax committees. Each
year after the initial designation of performance measures, the council shall evaluate the
usefulness of the standard set of performance measures and may revise the set by adding
or removing measures as it deems appropriate.
new text end

new text begin (b) By February 15, 2011, the council shall develop minimum standards for
comprehensive performance measurement systems, which may vary by size and type
of governing jurisdiction.
new text end

new text begin (c) In addition to its specific duties under paragraphs (a) and (b), the council
shall generally promote the use of performance measurement for governmental entities
across the state and shall serve as a resource for all governmental entities seeking to
implement a system of local performance measurement. The council may highlight and
promote systems that are innovative, or are ones that it deems to be best practices of local
performance measurement systems across the state and nation. The council should give
preference in its recommendations to systems that are results-oriented. The council may,
with the cooperation of the state auditor, establish and foster a collaborative network
of practitioners of local performance measurement systems. The council may support
the Association of Minnesota Counties and the League of Minnesota Cities to seek and
receive private funding to provide expert technical assistance to local governments for
the purposes of replicating best practices.
new text end

new text begin Subd. 3. new text end

new text begin Reports. new text end

new text begin (a) The council shall report its initial set of standard performance
measures to the Property and Local Sales Tax Division of the house of representatives
Taxes Committee and the Taxes Division on Property Taxes of the senate Taxes Committee
by February 28, 2010.
new text end

new text begin (b) By February 1 of each subsequent year, the council shall report to the committees
with jurisdiction over taxes in the house of representatives and the senate on participation
in and results of the performance measurement system, along with any revisions in the
standard set of performance measures for the upcoming year. These reports may be made
by the state auditor in lieu of the council if agreed to by the auditor and the council.
new text end

new text begin Subd. 4. new text end

new text begin Operation of council. new text end

new text begin (a) The state auditor shall convene the initial
meeting of the council.
new text end

new text begin (b) The chair of the council shall be elected by the members. Once elected, a chair
shall serve a term of two years.
new text end

new text begin (c) Members of the council serve without compensation.
new text end

new text begin (d) Council members shall share and rotate responsibilities for administrative
support of the council.
new text end

new text begin (e) Chapter 13D does not apply to meetings of the council. Meetings of the council
must be open to the public and the council must provide notice of a meeting on the state
auditor's Web site at least seven days before the meeting. A meeting of the council occurs
when a quorum is present.
new text end

new text begin (f) The council must meet at least two times prior to the initial release of the standard
set of measurements. After the initial set has been developed, the council must meet a
minimum of once per year.
new text end

new text begin Subd. 5. new text end

new text begin Termination. new text end

new text begin The council expires on January 1, 2019.
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.

new text begin [6.91] LOCAL PERFORMANCE MEASUREMENT AND REPORTING.
new text end

new text begin Subdivision 1. new text end

new text begin Reports of local performance measures. new text end

new text begin (a) A county or city that
elects to participate in the standard measures program must report its results to its citizens
annually through publication, direct mailing, posting on the jurisdiction's Web site, or
through a presentation at the jurisdiction's truth-in-taxation hearing under section 275.065.
new text end

new text begin (b) Each year, jurisdictions participating in the local performance measurement
and improvement program must file a report with the state auditor by July 1, in a form
prescribed by the auditor. All reports must include a declaration that the jurisdiction has
complied with, or will have complied with by the end of the year, the requirement in
paragraph (a). For jurisdictions participating in the standard measures program, the report
shall consist of the jurisdiction's results for the standard set of performance measures
under section 6.90, subdivision 2, paragraph (a). In 2011, jurisdictions participating in the
comprehensive performance measurement program must submit a resolution approved by
its local governing body indicating that it either has implemented or is in the process of
implementing a local performance measurement system that meets the minimum standards
specified by the council under section 6.90, subdivision 2, paragraph (b). In 2012 and
thereafter, jurisdictions participating in the comprehensive performance measurement
program must submit a statement approved by its local governing body affirming that
it has implemented a local performance measurement system that meets the minimum
standards specified by the council under section 6.90, subdivision 2, paragraph (b).
new text end

new text begin Subd. 2. new text end

new text begin Benefits of participation. new text end

new text begin (a) A county or city that elects to participate in
the standard measures program for 2010 is: (1) eligible for per capita reimbursement of
$0.25 per capita in 2011, but not to exceed $25,000 for any government entity; (2) exempt
from levy limits under sections 275.70 to 275.74 for taxes payable in 2011, if levy limits
are in effect; and (3) exempt from the truth-in-taxation public hearing requirement under
section 275.065, subdivision 6, for taxes payable in 2011, if the hearing requirement is
in effect.
new text end

new text begin (b) Any county or city that elects to participate in the standard measures program for
2011 is eligible for per capita reimbursement of $0.25 per capita in 2012, but not to exceed
$25,000 for any government entity. Any jurisdiction participating in the comprehensive
performance measurement program is exempt from levy limits under sections 275.70
to 275.74 for taxes payable in 2012 if levy limits are in effect, and is exempt from the
truth-in-taxation public hearing requirement under section 275.065, subdivision 6, for
taxes payable in 2012, if the hearing requirement is in effect.
new text end

new text begin (c) Any county or city that elects to participate in the standard measures program
for 2012 or any year thereafter is eligible for per capita reimbursement of $0.25 per
capita in the following year, but not to exceed $25,000 for any government entity. Any
jurisdiction participating in the comprehensive performance measurement program for
2012 or any year thereafter is exempt from levy limits under sections 275.70 to 275.74
for taxes payable in the following year, if levy limits are in effect, and is exempt from
the truth-in-taxation public hearing requirement under section 275.065, subdivision 6, for
taxes payable in the following year, if the hearing requirement is in effect.
new text end

new text begin Subd. 3. new text end

new text begin Certification of participation. new text end

new text begin (a) The state auditor shall certify to
the commissioner of revenue by August 1 of each year the counties and cities that are
participating in the standard measures program and the comprehensive performance
measurement program.
new text end

new text begin (b) The commissioner of revenue shall make per capita aid payments under this
section on the second payment date specified in section 477A.015, in the same year that
the measurements were reported.
new text end

new text begin (c) The commissioner of revenue shall notify each county and city that is entitled to
exemption from levy limits by August 10 of each levy year.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin (a) The amount necessary to fund obligations to counties
under subdivision 2 is annually appropriated from the general fund to the commissioner of
revenue.
new text end

new text begin (b) The amount necessary to fund obligations to cities under subdivision 2 is
annually appropriated from the general fund to the commissioner of revenue.
new text end

new text begin (c) The sum of $6,000 in fiscal year 2010 and $2,000 in each fiscal year thereafter is
annually appropriated from the general fund to the state auditor to carry out the auditor's
responsibilities under sections 6.90 to 6.91.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 31, 2009.
new text end

Sec. 3.

Minnesota Statutes 2008, section 134.34, subdivision 1, is amended to read:


Subdivision 1.

Local support levels.

new text begin(a) new text endA regional library basic system support
grant shall be made to any regional public library system where there are at least three
participating counties and where each participating city and county is providing for
public library service support the lesser of deleted text begin(a)deleted text endnew text begin (1)new text end an amount equivalent to .82 percent
of the new text beginaverage of the new text endadjusted net tax capacity of the taxable property of that city or
county, as determined by the commissioner of revenue for the secondnew text begin, third, and fourthnew text end
year preceding that calendar year deleted text beginin 1991 and later yearsdeleted text end or deleted text begin(b)deleted text endnew text begin (2)new text end a per capita amount
calculated under the provisions of this subdivision. The per capita amount is established
for calendar year 1993 as $7.62. In succeeding calendar years, the per capita amount shall
be increased by a percentage equal to one-half of the percentage by which the total state
adjusted net tax capacity of property as determined by the commissioner of revenue for
the second year preceding that calendar year increases over that total adjusted net tax
capacity for the third year preceding that calendar year.

new text begin (b) new text endThe minimum level of support new text beginspecified under this subdivision or subdivision 4
new text endshall be certified annually to the participating cities and counties by the Department of
Education. new text beginIf a city or county chooses to reduce its local support in accordance with
subdivision 4, paragraph (b) or (c), it shall notify its regional public library system. The
regional public library system shall notify the Department of Education that a revised
certification is required. The revised minimum level of support shall be certified to the
city or county by the Department of Education.
new text end

new text begin (c) new text endA city which is a part of a regional public library system shall not be required to
provide this level of support if the property of that city is already taxable by the county
for the support of that regional public library system. In no event shall the Department
of Education require any city or county to provide a higher level of support than the
level of support specified in this section in order for a system to qualify for a regional
library basic system support grant. This section shall not be construed to prohibit a city
or county from providing a higher level of support for public libraries than the level of
support specified in this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for calendar years 2009 and
thereafter, except that the change in paragraph (a) is effective for calendar years 2011
and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2008, section 134.34, subdivision 4, is amended to read:


Subd. 4.

Limitation.

new text begin(a) new text endA regional library basic system support grant shall not be
made to a regional public library system for a participating city or county which decreases
the dollar amount provided for support for operating purposes of public library service
below the amount provided by it for the secondnew text begin or thirdnew text end preceding yearnew text begin, whichever is lessnew text end.
For purposes of this subdivision and subdivision 1, any funds provided under section
473.757, subdivision 2, for extending library hours of operation shall not be considered
amounts provided by a city or county for support for operating purposes of public library
service. This subdivision shall not apply to participating cities or counties where the
adjusted net tax capacity of that city or county has decreased, if the dollar amount of the
reduction in support is not greater than the dollar amount by which support would be
decreased if the reduction in support were made in direct proportion to the decrease in
adjusted net tax capacity.

new text begin (b) In addition, in any calendar year in which a city's or county's aid under sections
477A.011 to 477A.014, or credits under section 273.1384 are reduced after the city or
county has certified its levy payable in that year, it may reduce its local support by the
lesser of (1) ten percent, or (2) a percent equal to the percent the aid or credit reduction is
of the city or county's revenue base as defined in paragraph (e), based on aids certified for
the current calendar year. For calendar year 2009 only, the reduction under this paragraph
shall be based on 2008 aid and credit reductions under the December 2008 unallotment, as
well as any aid and credit reductions in calendar year 2009. For calendar year 2009 only,
the commissioner of revenue shall calculate the reductions under this paragraph and certify
them to the commissioner of education within 15 days of this provision becoming law.
new text end

new text begin (c) In addition, in any payable year in which the total amounts certified for city or
county aids under sections 477A.011 to 477A.014 are less than the total amounts paid
under those sections in the previous calendar year, a city or county may reduce its local
support by the lesser of (1) ten percent, or (2) a percentage equal to the ratio of (i) the
difference between the sum of the aid it was paid under sections 477A.011 to 477A.014
and the credit reimbursements it received under section 273.1384 in the previous calendar
year and the aid it is certified to be paid in the current calendar year under sections
477A.011 to 477A.014 and the credits estimated to be paid under section 273.1384, to (ii)
its revenue base for the previous year, based on aids actually paid in the previous calendar
year. The commissioner of revenue shall calculate the percent aid cut for each county and
city under this paragraph and certify the percentage cuts to the commissioner of education
by August 1 of the year prior to the year in which the reduced aids and credits are to be
paid. The percentage of reduction related to reductions to credit reimbursements under
section 273.1384 shall be based on the best estimation available as of July 30.
new text end

new text begin (d) Notwithstanding paragraph (a), (b), or (c), no city or county shall reduce its
support for public libraries below the minimum level specified in subdivision 1. No county
may make a reduction under paragraph (b) or (c) in a year in which it is receiving local
sales tax revenue under section 297A.994.
new text end

new text begin (e) For purposes of this subdivision, "revenue base" means the sum of:
new text end

new text begin (1) its levy for taxes payable in the current calendar year, including the levy on
the fiscal disparities distribution under section 276A.06, subdivision 3, paragraph (a),
or 473F.08, subdivision 3, paragraph (a);
new text end

new text begin (2) its aid under sections 477A.011 to 477A.014 in the current calendar year; and
new text end

new text begin (3) its taconite aid in the current calendar year under sections 298.28 and 298.282.
new text end

new text begin (f) The sum of $21,000 in fiscal year 2010 and each fiscal year thereafter is
appropriated from the general fund to the commissioner of education to carry out the
additional responsibilities under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for support in calendar year 2009 and
thereafter for library grants paid in fiscal year 2010 and thereafter, except that the changes
in paragraph (a) are effective for support in calendar year 2010 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2008, section 245.4932, subdivision 1, is amended to read:


Subdivision 1.

Collaborative responsibilities.

The children's mental health
collaborative shall have the following authority and responsibilities regarding federal
revenue enhancement:

(1) the collaborative must establish an integrated fund;

(2) the collaborative shall designate a lead county or other qualified entity as the
fiscal agency for reporting, claiming, and receiving payments;

(3) the collaborative or lead county may enter into subcontracts with other counties,
school districts, special education cooperatives, municipalities, and other public and
nonprofit entities for purposes of identifying and claiming eligible expenditures to enhance
federal reimbursement;

(4) the collaborative shall use any enhanced revenue attributable to the activities of
the collaborative, including administrative and service revenue, solely to provide mental
health services or to expand the operational target population. The lead county or other
qualified entity may not use enhanced federal revenue for any other purpose;

deleted text begin (5) the members of the collaborative must continue the base level of expenditures,
as defined in section 245.492, subdivision 2, for services for children with emotional or
behavioral disturbances and their families from any state, county, federal, or other public
or private funding source which, in the absence of the new federal reimbursement earned
under sections 245.491 to 245.495, would have been available for those services. The
base year for purposes of this subdivision shall be the accounting period closest to state
fiscal year 1993;
deleted text end

deleted text begin (6)deleted text endnew text begin (5)new text end the collaborative or lead county must develop and maintain an accounting and
financial management system adequate to support all claims for federal reimbursement,
including a clear audit trail and any provisions specified in the contract with the
commissioner of human services;

deleted text begin (7)deleted text endnew text begin (6)new text end the collaborative or its members may elect to pay the nonfederal share of the
medical assistance costs for services designated by the collaborative; and

deleted text begin (8)deleted text endnew text begin (7)new text end the lead county or other qualified entity may not use federal funds or local
funds designated as matching for other federal funds to provide the nonfederal share of
medical assistance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning January 1, 2012.
new text end

Sec. 6.

Minnesota Statutes 2008, section 253B.045, subdivision 2, is amended to read:


Subd. 2.

Facilities.

Each county or a group of counties shall maintain or provide
by contract a facility for confinement of persons held temporarily for observation,
evaluation, diagnosis, treatment, and care. deleted text beginWhen the temporary confinement is provided
at a regional treatment center, the commissioner shall charge the county of financial
responsibility for the costs of confinement of persons hospitalized under section 253B.05,
subdivisions 1 and 2
, and section 253B.07, subdivision 2b, except that the commissioner
shall bill the responsible health plan first. If the person has health plan coverage, but the
hospitalization does not meet the criteria in subdivision 6 or section 62M.07, 62Q.53,
or 62Q.535, the county is responsible.
deleted text end When a person is temporarily confined in a
Department of Corrections facility solely under subdivision 1a, and not based on any
separate correctional authority:

(1) the commissioner of corrections may charge the county of financial responsibility
for the costs of confinement; and

(2) the Department of Human Services shall use existing appropriations to fund
all remaining nonconfinement costs. The funds received by the commissioner for the
confinement and nonconfinement costs are appropriated to the department for these
purposes.

"County of financial responsibility" means the county in which the person resides at the
time of confinement or, if the person has no residence in this state, the county which
initiated the confinement. The charge for confinement in a facility operated by the
commissioner of human services shall be based on the commissioner's determination of
the cost of care pursuant to section 246.50, subdivision 5. When there is a dispute as to
which county is the county of financial responsibility, the county charged for the costs of
confinement shall pay for them pending final determination of the dispute over financial
responsibility. Disputes about the county of financial responsibility shall be submitted to
the commissioner to be settled in the manner prescribed in section 256G.09.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning January 1, 2012.
new text end

Sec. 7.

Minnesota Statutes 2008, section 254B.04, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) Persons eligible for benefits under Code of Federal
Regulations, title 25, part 20, persons eligible for medical assistance benefits under
sections 256B.055, 256B.056, and 256B.057, subdivisions 1, 2, 5, and 6, or who meet
the income standards of section 256B.056, subdivision 4, and persons eligible for general
assistance medical care under section 256D.03, subdivision 3, are entitled to chemical
dependency fund services. State money appropriated for this paragraph must be placed in
a separate account established for this purpose.

Persons with dependent children who are determined to be in need of chemical
dependency treatment pursuant to an assessment under section 626.556, subdivision 10, or
a case plan under section 260C.201, subdivision 6, or 260C.212, shall be assisted by the
local agency to access needed treatment services. Treatment services must be appropriate
for the individual or family, which may include long-term care treatment or treatment in a
facility that allows the dependent children to stay in the treatment facility. deleted text beginThe county
shall pay for out-of-home placement costs, if applicable.
deleted text end

(b) A person not entitled to services under paragraph (a), but with family income
that is less than 215 percent of the federal poverty guidelines for the applicable family
size, shall be eligible to receive chemical dependency fund services within the limit
of funds appropriated for this group for the fiscal year. If notified by the state agency
of limited funds, a county must give preferential treatment to persons with dependent
children who are in need of chemical dependency treatment pursuant to an assessment
under section 626.556, subdivision 10, or a case plan under section 260C.201, subdivision
6
, or 260C.212. A county may spend money from its own sources to serve persons under
this paragraph. State money appropriated for this paragraph must be placed in a separate
account established for this purpose.

(c) Persons whose income is between 215 percent and 412 percent of the federal
poverty guidelines for the applicable family size shall be eligible for chemical dependency
services on a sliding fee basis, within the limit of funds appropriated for this group for the
fiscal year. Persons eligible under this paragraph must contribute to the cost of services
according to the sliding fee scale established under subdivision 3. A county may spend
money from its own sources to provide services to persons under this paragraph. State
money appropriated for this paragraph must be placed in a separate account established
for this purpose.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning January 1, 2012.
new text end

Sec. 8.

new text begin [256E.40] EQUITABLE FUNDING HEALTH AND HUMAN SERVICES
REFORM.
new text end

new text begin Subdivision 1. new text end

new text begin Reform. new text end

new text begin The goals in reforming local funding of the health and
human services delivery system are to:
new text end

new text begin (1) sustain the funding of county provided services;
new text end

new text begin (2) maintain Minnesota's ability to obtain federal funds to provide these services;
new text end

new text begin (3) equalize and make transparent the demands that providing these services makes
on the property tax system; and
new text end

new text begin (4) encourage local innovation and pilot programs using local revenues without
the risk of long-term obligations.
new text end

new text begin Subd. 2. new text end

new text begin Consolidated program funding. new text end

new text begin (a) Each county is required to dedicate a
portion of local property tax, determined under this section, to fund the local share of the
following programs as required by state law:
new text end

new text begin (1) the Comprehensive Mental Health Acts, sections 245.461 to 245.4889, excluding
case management services under section 256B.0625, subdivision 20, and children's
residential treatment under section 256B.0945;
new text end

new text begin (2) the Consolidated Chemical Dependency Treatment Fund under chapter 254B;
new text end

new text begin (3) the Commitment and Treatment Act, chapter 253B, as it relates to individuals
with mental illness or chemical dependency;
new text end

new text begin (4) hold orders under section 253B.045, subdivision 2;
new text end

new text begin (5) nursing facilities which are reimbursed through group residential housing under
chapter 256I due to their status as Institutions for Mental Diseases;
new text end

new text begin (6) services for which the county makes payments under section 256B.19; and
new text end

new text begin (7) the local share of the costs related to services provided by regional treatment
centers and state nursing facilities under section 246.54.
new text end

new text begin (b) The commissioner of revenue shall provide estimates to the commissioner
of human services of the expected revenue from this dedication in each county. The
commissioner of human services shall devise a mechanism for collecting or allocating
the sum of these dedications between these programs as necessary to meet federal match
requirements. The commissioner shall make recommendations to the chairs of the house
and senate committees dealing with health and human service funding and taxes, no later
than January 1, 2011. Any contribution in excess of the amount needed to meet federal
match requirements shall be spent on the various programs at the discretion of the county.
new text end

new text begin (c) In 2012, the required dedication of a county's portion of its local property tax
is equal to a uniform percentage of its adjusted net tax capacity for the most recently
available year, limited as provided in paragraph (d). The commissioner of revenue shall
determine the percentage so that the total amount dedicated in all counties in 2012, after
the limits in paragraph (d), is equal to the total estimated amount of local source revenues
that all counties would otherwise be required to pay for these programs and services listed
in paragraph (a) in calendar year 2012 as if the county funding mechanisms for these
programs and services for calendar year 2011 were still in effect. The commissioner of
human services shall provide the commissioner of revenue with the information necessary
to make this calculation by July 30, 2011.
new text end

new text begin (d) In 2013 and future years, the required dedication of a county's portion of its local
property tax is equal to a percentage of its adjusted net tax capacity adjusted as required in
paragraph (d). The percentage is the same as the percentage used in the previous year.
new text end

new text begin (e) In calendar year 2012, a county's revenue dedication under paragraph (b) cannot
be greater than the sum of (1) its estimated amount of required local source revenues for
these programs and services in calendar year 2011, plus (2) one percent of its calendar
year 2011 property tax levy. In calendar year 2013 and future years, a county's revenue
dedication under paragraph (c) cannot be greater than the sum of (1) its revenue dedicated
under this subdivision in the previous year, multiplied by one plus its percentage increase
in its adjusted net tax capacity for the most recently available year, plus (2) one percent of
its property tax levy from the previous year.
new text end

new text begin Subd. 3. new text end

new text begin County discretionary spending. new text end

new text begin Nothing in this section shall be construed
as prohibiting counties from spending local source revenues on health and human services
in excess of the amount calculated under subdivision 2 but a county may not be required
to continue spending local source revenue at a higher level than the amount determined in
subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax levies payable in
2012 and thereafter and program spending beginning January 1, 2012.
new text end

Sec. 9.

new text begin [270C.991] PROPERTY TAX SYSTEM BENCHMARKS AND
CRITICAL INDICATORS.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin State policy makers should be provided with the tools to
create a more accountable and efficient property tax system. This section provides the
principles and available tools necessary to work toward achieving that goal.
new text end

new text begin Subd. 2. new text end

new text begin Property tax principles. new text end

new text begin To better evaluate the various property tax
proposals that come before the legislature, the following basic property tax principles
should be taken into consideration. The property taxes proposed should be:
new text end

new text begin (1) transparent and understandable;
new text end

new text begin (2) simple and efficient;
new text end

new text begin (3) equitable;
new text end

new text begin (4) stable and predictable;
new text end

new text begin (5) compliance and accountability;
new text end

new text begin (6) competitive, both nationally and globally; and
new text end

new text begin (7) responsive to economic conditions.
new text end

new text begin Subd. 3. new text end

new text begin Major indicators. new text end

new text begin There are many different types of indicators available to
legislators to evaluate tax legislation. Indicators are useful to have available as benchmarks
when legislators are contemplating changes. Each tool has its own limitation, and no one
tool is perfect or should be used independently. Some of the tools measure the global
characteristics of the entire tax system, while others are only a measure of the property tax
impacts and its administration. The following is a list of the available major indicators:
new text end

new text begin (1) property tax principles scale, the components of which are listed in subdivision
2, as they relate to the various features of the property tax system;
new text end

new text begin (2) price of government report, as required under section 16A.102;
new text end

new text begin (3) tax incidence report, as required under section 270C.13;
new text end

new text begin (4) tax expenditure budget and report, as required under section 270C.11;
new text end

new text begin (5) state tax rankings;
new text end

new text begin (6) property tax levy plus aid data, and market value and net tax capacity data, by
taxing district for current and past years;
new text end

new text begin (7) effective tax rate (tax as a percent of market value) and the equalized effective
tax rate (effective tax rate adjusted for assessment differences);
new text end

new text begin (8) assessment sales ratio study, as required under section 127A.48;
new text end

new text begin (9) "Voss" database, which matches homeowner property taxes and household
income;
new text end

new text begin (10) revenue estimates under section 270C.11, subdivision 5, and state fiscal notes
under section 477A.03, subdivision 2b; and
new text end

new text begin (11) local impact notes, with improved local analysis as described in subdivision 7.
new text end

new text begin Subd. 4. new text end

new text begin Property tax working group. new text end

new text begin (a) A property tax working group is
established as provided in this subdivision. The goals of the working group are:
new text end

new text begin (1) to investigate ways to simplify the property tax system and make advisory
recommendations on ways to make the system more understandable;
new text end

new text begin (2) to reexamine the property tax calendar to determine what changes could be made
to shorten the two-year cycle from assessment through property tax collection; and
new text end

new text begin (3) to determine the cost versus the benefits of the various property tax components,
including property classifications, credits, aids, exclusions, exemptions, and abatements,
and to suggest ways to achieve some of the goals in simpler and more cost-efficient ways.
new text end

new text begin (b) The 12-member working group shall consist of the following members:
new text end

new text begin (1) two state representatives, both appointed by the chair of the house of
representatives Taxes Committee, one from the majority party and one from the minority
party;
new text end

new text begin (2) two senators, both appointed by the chair of the senate Taxes Committee, one
from the majority party and one from the minority party;
new text end

new text begin (3) the commissioner of revenue, or designee;
new text end

new text begin (4) one person, appointed by the Association of Minnesota Counties;
new text end

new text begin (5) one person, appointed by the League of Minnesota Cities;
new text end

new text begin (6) one person, appointed by the Minnesota Association of Townships;
new text end

new text begin (7) one person, appointed by the Minnesota Chamber of Commerce;
new text end

new text begin (8) one person, appointed by the Minnesota Association of Assessing Officers; and
new text end

new text begin (9) two homeowners, one who is under 65 years of age, and one who is 65 years of
age or older, both appointed by the commissioner of revenue.
new text end

new text begin The commissioner of revenue shall chair the initial meeting, and the working
group shall elect a chair at that initial meeting. The working group will meet at the call
of the chair. Members of the working group shall serve without compensation. The
commissioner of revenue must provide administrative support to the working group.
Chapter 13D does not apply to meetings of the working group. Meetings of the working
group must be open to the public and the working group must provide notice of a meeting
to potentially interested persons at least seven days before the meeting. A meeting of the
council occurs when a quorum is present.
new text end

new text begin (c) The working group shall make its advisory recommendations to the chairs of the
house of representatives and senate Taxes Committees on or before February 1, 2011, at
which time the working group shall be finished and this subdivision expires. The advisory
recommendations should be reviewed by the Taxes Committee under subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Taxes Committee review and resolution. new text end

new text begin On or before March 1,
2011, and every two years thereafter, the house of representatives and senate Taxes
Committees must review the major indicators as contained in subdivision 3, and ascertain
the accountability and efficiency of the property tax system. The house of representatives
and senate Taxes Committees shall prepare a resolution on targets and benchmarks for
use during the current biennium.
new text end

new text begin Subd. 6. new text end

new text begin Department of Revenue; revenue estimates. new text end

new text begin As provided under
section 270C.11, subdivision 5, the Department of Revenue is required to prepare an
estimate of the effect on the state's tax revenues which result from the passage of a
legislative bill establishing, extending, or restricting a tax expenditure. Beginning
with the 2010 legislative session, those revenue estimates must also identify how the
property tax principles contained in subdivision 2 apply to the proposed tax changes. The
commissioner of revenue shall develop a scale for measuring the appropriate principles
for each proposed change. The department shall quantify the effects, if possible, or at a
minimum, shall identify the relevant factors so that legislators are aware of possible
outcomes, including administrative difficulties and cost. The interaction of property tax
shifting should be identified and quantified to the degree possible.
new text end

new text begin Subd. 7. new text end

new text begin Local impact notes. new text end

new text begin Local impact notes are statements that provide
information about changes in local government responsibility, administration, and cost due
to changes in state law. The local impact note process seeks the participation of political
subdivisions to gather information as needed by the legislature. The local impact network
of political subdivisions shall consist of representation from associations from Minnesota
counties, cities, towns, and school districts, and other members as needed. They shall,
among other things, work with the legislature and the commissioner of finance to analyze:
new text end

new text begin (1) changes in tax revenues for local governments;
new text end

new text begin (2) changes in expenditures for local governments, including program and
administration costs; and
new text end

new text begin (3) incidences of tax shifting, including identifying the target audience (taxpayers
who will benefit from the tax shift) and the impact audience (taxpayers who will bear the
burden of the tax shift).
new text end

new text begin For tax bills the local impact network of political subdivisions shall rate the impact
on Minnesota's tax system using the tax principles contained in subdivision 2.
new text end

new text begin Some of the cost for preparing this information shall be distributed to the local
impact network as provided under section 477A.03, subdivision 2b, paragraph (b).
new text end

new text begin Subd. 8. new text end

new text begin Appropriation. new text end

new text begin The sum of $30,000 in fiscal year 2010 and $25,000 in
each fiscal year thereafter is appropriated from the general fund to the commissioner of
revenue to carry out the commissioner's added responsibilities under subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2008, section 273.1384, is amended by adding a
subdivision to read:


new text begin Subd. 3a. new text end

new text begin Reimbursement reductions. new text end

new text begin (a) Each year, each county's reimbursement
under this section shall be reduced by a uniform percentage so that the total reduction
in reimbursements equals the sum of: (i) the amount appropriated under section 6.91,
subdivision 4, paragraph (a); (ii) one-half of the total amount appropriated under section
6.91, subdivision 4, paragraph (c); and (iii) one-half of the total amount appropriated
under section 270C.991, subdivision 8.
new text end

new text begin (b) Each year, each city's reimbursement under this section shall be reduced by a
uniform percentage so that the total reduction in reimbursements equals the sum of: (i)
the amount appropriated under section 6.91, subdivision 4, paragraph (b); (ii) one-half of
the total amount appropriated under section 6.91, subdivision 4, paragraph (c); and (iii)
one-half of the total amount appropriated under section 270C.991, subdivision 8.
new text end

new text begin (c) Each year, each school district's reimbursement under this section shall be
reduced by a uniform percentage so that the total reduction in reimbursements equals the
amount appropriated under section 134.34, subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2009 and
thereafter.
new text end

Sec. 11.

new text begin [275.77] TEMPORARY SUSPENSION OF NEW OR INCREASED
MAINTENANCE OF EFFORT AND MATCHING FUND REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (1) "maintenance of effort" means a requirement imposed on a political subdivision
by state law to continue providing funding of a service or program at a given or increasing
level based on its funding of the service and program in prior years;
new text end

new text begin (2) "matching fund requirement" means a requirement imposed on a political
subdivision by state law to fund a portion of a program or service but does not mean
required nonstate contributions to state capital funded projects or other nonstate
contributions required in order to receive a grant or loan the political subdivision has
requested or applied for; and
new text end

new text begin (3) "political subdivision" means a county, town, or statutory or home rule charter
city.
new text end

new text begin Subd. 2. new text end

new text begin Temporary suspension. new text end

new text begin (a) Notwithstanding any other provision of law
to the contrary, any new maintenance of effort or matching fund requirement enacted
after January 1, 2009, that will require spending by a political subdivision shall not be
effective until January 1, 2012.
new text end

new text begin (b) Notwithstanding any other provision of law to the contrary, any changes to
existing maintenance of effort or matching fund requirement enacted after January 1,
2009, that will require new spending by a political subdivision shall not be effective
until January 1, 2012.
new text end

new text begin (c) The suspension of changes to existing maintenance of effort and matching fund
requirements under paragraph (b) does not apply if the spending is required by federal law
and there would be a cost to the state budget without the change.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 245.4835; 245.714; 246.54; 254B.02, subdivision
3; 256B.19, subdivision 1; and 256I.08,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2012, contingent upon the
implementation of alternative funding mechanisms for the sections being repealed, using
the funding provided in section 256E.40, or other sections of law.
new text end

ARTICLE 4

LOCAL GOVERNMENT FLEXIBILITY AND MANDATE
REDUCTION PROVISIONS

Section 1.

Minnesota Statutes 2008, section 3.842, subdivision 4a, is amended to read:


Subd. 4a.

Objections to rules.

(a) For purposes of this subdivision, "committee"
means the house of representatives policy committee or senate policy committee with
primary jurisdiction over state governmental operations. The commissionnew text begin, the Legislative
Commission on Mandate Reform,
new text end or a committee may object to a rule as provided in
this subdivision. If the commissionnew text begin, the Legislative Commission on Mandate Reform,new text end
or a committee objects to all or some portion of a rule because the commissionnew text begin, the
Legislative Commission on Mandate Reform,
new text end or new text begina new text endcommittee considers it to be beyond
the procedural or substantive authority delegated to the agency, including a proposed rule
submitted under section 14.15, subdivision 4, or 14.26, subdivision 3, paragraph (c), the
commissionnew text begin, the Legislative Commission on Mandate Reform,new text end or new text begina new text endcommittee may file
that objection in the Office of the Secretary of State. The filed objection must contain a
concise statement of the commission'snew text begin, the Legislative Commission on Mandate Reform,new text end
or new text begina new text endcommittee's reasons for its action. An objection to a proposed rule submitted by the
commissionnew text begin, the Legislative Commission on Mandate Reform,new text end or a committee under
section 14.15, subdivision 4, or 14.26, subdivision 3, paragraph (c), may not be filed
before the rule is adopted.

(b) The secretary of state shall affix to each objection a certification of the date and
time of its filing and as soon after the objection is filed as practicable shall transmit a
certified copy of it to the agency issuing the rule in question and to the revisor of statutes.
The secretary of state shall also maintain a permanent register open to public inspection of
all objections by the commissionnew text begin, the Legislative Commission on Mandate Reform,new text end or
new text begin a new text endcommittee.

(c) The commissionnew text begin, the Legislative Commission on Mandate Reform,new text end or new text begina
new text endcommittee shall publish and index an objection filed under this section in the next issue
of the State Register. The revisor of statutes shall indicate the existence of the objection
adjacent to the rule in question when that rule is published in Minnesota Rules.

(d) Within 14 days after the filing of an objection by the commissionnew text begin, the Legislative
Commission on Mandate Reform,
new text end or new text begina new text endcommittee to a rule, the issuing agency shall
respond in writing to the objecting entity. After receipt of the response, the commissionnew text begin,
the Legislative Commission on Mandate Reform,
new text end or new text begina new text endcommittee may withdraw or modify
its objection.

(e) After the filing of an objection by the commissionnew text begin, the Legislative Commission
on Mandate Reform,
new text end or new text begina new text endcommittee that is not subsequently withdrawn, the burden is
upon the agency in any proceeding for judicial review or for enforcement of the rule to
establish that the whole or portion of the rule objected to is valid.

(f) The failure of the commissionnew text begin, the Legislative Commission on Mandate Reform,new text end
or a committee to object to a rule is not an implied legislative authorization of its validity.

(g) In accordance with sections 14.44 and 14.45, the commissionnew text begin, the Legislative
Commission on Mandate Reform,
new text end or a committee may petition for a declaratory judgment
to determine the validity of a rule objected to by the commissionnew text begin, the Legislative
Commission on Mandate Reform,
new text end or new text begina new text endcommittee. The action must be started within two
years after an objection is filed in the Office of the Secretary of State.

(h) The commissionnew text begin, the Legislative Commission on Mandate Reform,new text end or a
committee may intervene in litigation arising from agency action. For purposes of this
paragraph, agency action means the whole or part of a rule, or the failure to issue a rule.

Sec. 2.

Minnesota Statutes 2008, section 3.843, is amended to read:


3.843 PUBLIC HEARINGS BY STATE AGENCIES.

By a vote of a majority of its members, the commissionnew text begin or the Legislative
Commission on Mandate Reform
new text end may request any agency issuing rules to hold a
public hearing in respect to recommendations made under section 3.842, including
recommendations made by the commissionnew text begin or the Legislative Commission on Mandate
Reform
new text end to promote adequate and proper rules by that agency and recommendations
contained in the commission's biennial report. The agency shall give notice as provided in
section 14.14, subdivision 1, of a hearing under this section, to be conducted in accordance
with sections 14.05 to 14.28. The hearing must be held not more than 60 days after receipt
of the request or within any other longer time period specified by the commissionnew text begin or the
Legislative Commission on Mandate Reform
new text end in the request.

Sec. 3.

new text begin [3.99] LEGISLATIVE COMMISSION ON MANDATE REFORM;
ESTABLISHED.
new text end

new text begin Subdivision 1. new text end

new text begin Established. new text end

new text begin The Legislative Commission on Mandate Reform is
established as provided in this section, with the powers and duties given it in sections
3.842, subdivision 4a; 3.843; and 3.99 to 3.992.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The commission consists of four senators appointed by the
senate Subcommittee on Committees of the Committee on Rules and Administration,
three senators appointed by the senate minority leader, four state representatives appointed
by the speaker of the house, and three state representatives appointed by the house
of representatives minority leader. The appointing authorities must ensure balanced
geographic representation. Each appointing authority must make appointments as soon as
possible.
new text end

new text begin Subd. 3. new text end

new text begin Terms; vacancies. new text end

new text begin Members of the commission serve for a two-year term
beginning upon appointment and expiring upon appointment of a successor after the
opening of the next regular session of the legislature in the odd-numbered year. A vacancy
in the membership of the commission must be filled for the unexpired term in a manner
that will preserve the representation established by this section.
new text end

new text begin Subd. 4. new text end

new text begin Chair. new text end

new text begin The commission must meet as soon as practicable after members
are appointed in each odd-numbered year to elect its chair and other officers as it may
determine necessary. A chair serves a two-year term, expiring in the odd-numbered year
after a successor is elected. The chair must alternate biennially between the senate and the
house of representatives.
new text end

new text begin Subd. 5. new text end

new text begin Compensation. new text end

new text begin Members may be reimbursed for their reasonable
expenses as members of the legislature.
new text end

new text begin Subd. 6. new text end

new text begin Staff. new text end

new text begin The Legislative Coordinating Commission must provide
administrative support to the commission, including secretarial services, record keeping,
and grants administration.
new text end

new text begin Subd. 7. new text end

new text begin Meetings; procedures; tie votes. new text end

new text begin The first meeting of the biennium must
be convened by the member designated by the senate majority leader if a senator is to chair
the commission for the biennium, or by the speaker of the house if a state representative
is to chair the commission for the biennium. The commission meets at the call of the
chair. Commission action requires a positive vote of at least four house of representatives
members and at least four senate members.
new text end

new text begin Subd. 8. new text end

new text begin Funding. new text end

new text begin The Legislative Coordinating Commission shall annually bill the
commissioner of revenue for costs incurred by the Legislative Coordinating Commission
in providing administrative support and to make the grants authorized by the Legislative
Commission on Mandate Reform, in an amount not to exceed $100,000 per year. The
commissioner of revenue shall deduct one-half of the certified costs from payments to
counties under section 477A.03, subdivision 2b, and one-half of the certified costs from
payments to cities under section 477A.03, subdivision 2a.
new text end

Sec. 4.

new text begin [3.991] LEGISLATIVE COMMISSION ON MANDATE REFORM;
REVIEW AND RECOMMENDATIONS TO LEGISLATURE.
new text end

new text begin The Legislative Commission on Mandate Reform must solicit from local
governments information on state laws and rules that local governments consider to be
problematic mandates. The commission must review the mandates identified and consider
why each mandate was enacted or adopted, whether the reason for it still exists, the costs
to local governments to comply with the mandate, and whether repeal or modification
of the mandate is appropriate. Before the beginning of each legislative session, the
commission must prepare for introduction a bill to repeal or modify those laws or rules the
commission determines are unnecessary.
new text end

Sec. 5.

new text begin [3.992] LEGISLATIVE COMMISSION ON MANDATE REFORM;
GRANTS.
new text end

new text begin Upon recommendation of the Legislative Commission on Mandate Reform,
the commissioner of revenue may make grants to the League of Minnesota Cities,
the Association of Minnesota Counties, Minnesota Association of Townships, other
organizations representing local governments, the Board of Regents of the University of
Minnesota, the Board of Trustees of Minnesota State Colleges and Universities, or other
accredited postsecondary institutions to research and make recommendations on mandate
reform. The commissioner must specify the work to be done, the completion date, and
the maximum grant amount, and may specify any other conditions the commissioner
deems necessary or useful.
new text end

Sec. 6.

new text begin [3.993] EXPIRATION.
new text end

new text begin Sections 3.99 to 3.992 expire June 30, 2013.
new text end

Sec. 7.

new text begin [14.128] EFFECTIVE DATE FOR RULES REQUIRING LOCAL
IMPLEMENTATION.
new text end

new text begin Subdivision 1. new text end

new text begin Determination. new text end

new text begin An agency must determine if a local government
will be required to adopt or amend an ordinance or other regulation to comply with a
proposed agency rule. An agency must make this determination before the close of the
hearing record or before the agency submits the record to the administrative law judge if
there is no hearing. The administrative law judge must review and approve or disapprove
the agency's determination. "Local government" means a town, county, or home rule
charter or statutory city.
new text end

new text begin Subd. 2. new text end

new text begin Effective dates. new text end

new text begin If the agency determines that the proposed rule requires
adoption or amendment of an ordinance or other regulation, or if the administrative law
judge disapproves the agency's determination that the rule does not have this effect, the
rule may not become effective until:
new text end

new text begin (1) the next July 1 or January 1 after notice of final adoption is published in the
State Register; or
new text end

new text begin (2) a later date provided by law or specified in the proposed rule.
new text end

new text begin Subd. 3. new text end

new text begin Exceptions. new text end

new text begin Subdivision 2 does not apply:
new text end

new text begin (1) to a rule adopted under section 14.388, 14.389, or 14.3895, or under another law
specifying that the rulemaking procedures of this chapter do not apply;
new text end

new text begin (2) if the administrative law judge approves an agency's determination that the rule
has been proposed pursuant to a specific federal statutory or regulatory mandate that
requires the rule to take effect before the date specified in subdivision 2; or
new text end

new text begin (3) if the governor waives application of subdivision 2.
new text end

Sec. 8.

Minnesota Statutes 2008, section 16C.28, subdivision 1a, is amended to read:


Subd. 1a.

Establishment and purpose.

(a) The state recognizes the importance of
the inclusion of a best value contracting system for construction as an alternative to the
current low-bid system of procurement. In order to accomplish that goal, state and local
governmental entities shall be able to choose the best value system in different phases.

(b) "Best value" means the procurement method defined in section 16C.02,
subdivision 4a.

(c) The following entities are eligible to participate in phase I:

(1) state agencies;

(2) counties;

(3) cities; and

(4) school districts with the highest 25 percent enrollment of students in the state.

Phase I begins on July 1, 2007.

(d) The following entities are eligible to participate in phase II:

(1) those entities included in phase I; and

(2) school districts with the highest 50 percent enrollment of students in the state.

Phase II begins two years from July 1, 2007.

(e) The following entities are eligible to participate in phase III:

(1) all entities included in phases I and II; and

(2) all other townships, school districts, and political subdivisions in the state.

Phase III begins three years from July 1, 2007.

deleted text begin (f) The commissioner or any agency for which competitive bids or proposals are
required may not use best value contracting as defined in section 16C.02, subdivision 4a,
for more than one project annually, or 20 percent of its projects, whichever is greater, in
each of the first three fiscal years in which best value construction contracting is used.
deleted text end

Sec. 9.

Minnesota Statutes 2008, section 306.243, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Abandonment; end of operation as cemetery. new text end

new text begin A county that has accepted
responsibility for an abandoned cemetery may prohibit further burials in the abandoned
cemetery, and may cease all acceptance of responsibility for new burials.
new text end

Sec. 10.

Minnesota Statutes 2008, section 344.18, is amended to read:


344.18 COMPENSATION OF VIEWERS.

Fence viewers must be paid for their services by the person employing them deleted text beginat the
rate of $15 each for each day's employment. $60 must be deposited with the town or city
treasurer before the service is performed. Upon completion of the service, any of the $60
not spent to compensate the fence viewers must be returned to the depositor
deleted text end.new text begin The town
board may by resolution require the person employing the fence viewers to post a bond or
other security acceptable to the board for the total estimated costs before the viewing takes
place. The total estimated costs may include the cost of professional and other services,
hearing costs, administrative costs, recording costs, and other costs and expenses which
the town may incur in connection with the viewing.
new text end

Sec. 11.

Minnesota Statutes 2008, section 365.28, is amended to read:


365.28 PUBLIC BURIAL GROUND IS TOWN'S AFTER TEN YEARS.

A tract of land in a town becomes town property after it has been used as a public
burial ground for ten years if the tract is not owned by a cemetery association. The town
board shall control the burial ground as it controls other town cemeteries.new text begin A town that has
assumed ownership of a cemetery may prohibit further burials in it.
new text end

Sec. 12.

Minnesota Statutes 2008, section 429.041, subdivision 1, is amended to read:


Subdivision 1.

Plans and specifications, advertisement for bids.

When the
council determines to make any improvement, it shall let the contract for all or part of
the work, or order all or part of the work done by day labor or otherwise as authorized by
subdivision 2, no later than one year after the adoption of the resolution ordering such
improvement, unless a different time limit is specifically stated in the resolution ordering
the improvement. The council shall cause plans and specifications of the improvement
to be made, or if previously made, to be modified, if necessary, and to be approved and
filed with the clerk, and if the estimated cost exceeds deleted text begin$50,000deleted text endnew text begin the amount in section
471.345, subdivision 3
new text end, shall advertise for bids for the improvement in the newspaper and
such other papers and for such length of time as it may deem advisable. If the estimated
cost exceeds deleted text begin$100,000deleted text endnew text begin twice the amount in section 471.345, subdivision 3new text end, publication
shall be made no less than three weeks before the last day for submission of bids once
in the newspaper and at least once in either a newspaper published in a city of the first
class or a trade paper. To be eligible as such a trade paper, a publication shall have all
the qualifications of a legal newspaper except that instead of the requirement that it shall
contain general and local news, such trade paper shall contain building and construction
news of interest to contractors in this state, among whom it shall have a general circulation.
The advertisement shall specify the work to be done, shall state the time when the bids
will be publicly opened for consideration by the council, which shall be not less than ten
days after the first publication of the advertisement when the estimated cost is less than
deleted text begin $100,000deleted text endnew text begin twice the amount in section 471.345, subdivision 3,new text end and not less than three
weeks after such publication in other cases, and shall state that no bids will be considered
unless sealed and filed with the clerk and accompanied by a cash deposit, cashier's check,
bid bond, or certified check payable to the clerk, for such percentage of the amount of the
bid as the council may specify. In providing for the advertisement for bids the council
may direct that the bids shall be opened publicly by two or more designated officers or
agents of the municipality and tabulated in advance of the meeting at which they are to
be considered by the council. Nothing herein shall prevent the council from advertising
separately for various portions of the work involved in an improvement, or from itself,
supplying by such means as may be otherwise authorized by law, all or any part of the
materials, supplies, or equipment to be used in the improvement or from combining two or
more improvements in a single set of plans and specifications or a single contract.

Sec. 13.

Minnesota Statutes 2008, section 429.041, subdivision 2, is amended to read:


Subd. 2.

Contracts; day labor.

In contracting for an improvement, the council shall
require the execution of one or more written contracts and bonds, conditioned as required
by law. The council shall award the contract to the lowest responsible bidder or it may
reject all bids. If any bidder to whom a contract is awarded fails to enter promptly into
a written contract and to furnish the required bond, the defaulting bidder shall forfeit to
the municipality the amount of the defaulter's cash deposit, cashier's check, bid bond, or
certified check, and the council may thereupon award the contract to the next lowest
responsible bidder. When it appears to the council that the cost of the entire work projected
will be less than deleted text begin$50,000deleted text endnew text begin the amount in section 471.345, subdivision 3new text end, or whenever no
bid is submitted after proper advertisement or the only bids submitted are higher than
the engineer's estimate, the council may advertise for new bids or, without advertising
for bids, directly purchase the materials for the work and do it by the employment of day
labor or in any other manner the council considers proper. The council may have the
work supervised by the city engineer or other qualified person but shall have the work
supervised by a registered engineer if done by day labor and it appears to the council that
the entire cost of all work and materials for the improvement will be more than deleted text begin$25,000deleted text endnew text begin
the lowest amount in section 471.345, subdivision 4
new text end. In case of improper construction
or unreasonable delay in the prosecution of the work by the contractor, the council may
order and cause the suspension of the work at any time and relet the contract, or order
a reconstruction of any portion of the work improperly done, and where the cost of
completion or reconstruction necessary will be less than deleted text begin$50,000deleted text endnew text begin the amount in section
471.345, subdivision 3
new text end, the council may do it by the employment of day labor.

Sec. 14.

Minnesota Statutes 2008, section 469.015, is amended to read:


469.015 LETTING OF CONTRACTS; PERFORMANCE BONDS.

Subdivision 1.

Bids; notice.

All construction work, and work of demolition or
clearing, and every purchase of equipment, supplies, or materials, necessary in carrying
out the purposes of sections 469.001 to 469.047, that involve expenditure of deleted text begin$50,000deleted text endnew text begin the
amount in section 471.345, subdivision 3,
new text end or more shall be awarded by contract. Before
receiving bids the authority shall publish, once a week for two consecutive weeks in an
official newspaper of general circulation in the community a notice that bids will be
received for that construction work, or that purchase of equipment, supplies, or materials.
The notice shall state the nature of the work and the terms and conditions upon which the
contract is to be let, naming a time and place where bids will be received, opened and read
publicly, which time shall be not less than seven days after the date of the last publication.
After the bids have been received, opened and read publicly and recorded, the authority
shall award the contract to the lowest responsible bidder, provided that the authority
reserves the right to reject any or all bids. Each contract shall be executed in writing, and
the person to whom the contract is awarded shall give sufficient bond to the authority for its
faithful performance. If no satisfactory bid is received, the authority may readvertise. The
authority may establish reasonable qualifications to determine the fitness and responsibility
of bidders and to require bidders to meet the qualifications before bids are accepted.

Subd. 1a.

Best value alternative.

As an alternative to the procurement method
described in subdivision 1, the authority may issue a request for proposals and award the
contract to the vendor or contractor offering the best value under a request for proposals as
described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

Subd. 2.

Exception; emergency.

If the authority by a vote of four-fifths of its
members shall declare that an emergency exists requiring the immediate purchase of any
equipment or material or supplies at a cost in excess of deleted text begin$50,000deleted text endnew text begin the amount in section
471.345, subdivision 3,
new text end but not exceeding deleted text begin$75,000deleted text endnew text begin half again as much as the amount in
section 471.345, subdivision 3
new text end, or making of emergency repairs, it shall not be necessary
to advertise for bids, but the material, equipment, or supplies may be purchased in the
open market at the lowest price obtainable, or the emergency repairs may be contracted for
or performed without securing formal competitive bids. An emergency, for purposes of
this subdivision, shall be understood to be unforeseen circumstances or conditions which
result in the placing in jeopardy of human life or property.

Subd. 3.

Performance and payment bonds.

Performance and payment bonds shall
be required from contractors for any works of construction as provided in and subject
to all the provisions of sections 574.26 to 574.31 except for contracts entered into by
an authority for an expenditure of less than deleted text begin$50,000deleted text endnew text begin the minimum threshold amount in
section 471.345, subdivision 3
new text end.

Subd. 4.

Exceptions.

(a) An authority need not require competitive bidding in the
following circumstances:

(1) in the case of a contract for the acquisition of a low-rent housing project:

(i) for which financial assistance is provided by the federal government;

(ii) which does not require any direct loan or grant of money from the municipality
as a condition of the federal financial assistance; and

(iii) for which the contract provides for the construction of the project upon land that
is either owned by the authority for redevelopment purposes or not owned by the authority
at the time of the contract but the contract provides for the conveyance or lease to the
authority of the project or improvements upon completion of construction;

(2) with respect to a structured parking facility:

(i) constructed in conjunction with, and directly above or below, a development; and

(ii) financed with the proceeds of tax increment or parking ramp general obligation
or revenue bonds;

(3) until August 1, 2009, with respect to a facility built for the purpose of facilitating
the operation of public transit or encouraging its use:

(i) constructed in conjunction with, and directly above or below, a development; and

(ii) financed with the proceeds of parking ramp general obligation or revenue bonds
or with at least 60 percent of the construction cost being financed with funding provided
by the federal government; and

(4) in the case of any building in which at least 75 percent of the usable square
footage constitutes a housing development project if:

(i) the project is financed with the proceeds of bonds issued under section 469.034 or
from nongovernmental sources;

(ii) the project is either located on land that is owned or is being acquired by the
authority only for development purposes, or is not owned by the authority at the time the
contract is entered into but the contract provides for conveyance or lease to the authority
of the project or improvements upon completion of construction; and

(iii) the authority finds and determines that elimination of the public bidding
requirements is necessary in order for the housing development project to be economical
and feasible.

(b) An authority need not require a performance bond for the following projects:

(1) a contract described in paragraph (a), clause (1);

(2) a construction change order for a housing project in which 30 percent of the
construction has been completed;

(3) a construction contract for a single-family housing project in which the authority
acts as the general construction contractor; or

(4) a services or materials contract for a housing project.

For purposes of this paragraph, "services or materials contract" does not include
construction contracts.

Subd. 5.

Security in lieu of bond.

The authority may accept a certified check or
cashier's check in the same amount as required for a bond in lieu of a performance bond
for contracts entered into by an authority for an expenditure of less than deleted text begin$50,000deleted text endnew text begin the
minimum threshold amount in section 471.345, subdivision 3
new text end. The check must be held by
the authority for 90 days after the contract has been completed. If no suit is brought within
the 90 days, the authority must return the amount of the check to the person making it. If a
suit is brought within the 90-day period, the authority must disburse the amount of the
check pursuant to the order of the court.

Sec. 15.

Minnesota Statutes 2008, section 641.12, subdivision 1, is amended to read:


Subdivision 1.

Fee.

A county board may require that each person who is booked for
confinement at a county or regional jail, and not released upon completion of the booking
process, pay a fee deleted text beginof up to $10deleted text end to the sheriff's department of the county in which the jail
is locatednew text begin to cover costs incurred by the county in the booking of that personnew text end. The fee
is payable immediately from any money then possessed by the person being booked, or
any money deposited with the sheriff's department on the person's behalf. If the person
has no funds at the time of booking or during the period of any incarceration, the sheriff
shall notify the district court in the county where the charges related to the booking are
pending, and shall request the assessment of the fee. Notwithstanding section 609.10 or
609.125, upon notification from the sheriff, the district court must order the fee paid to the
sheriff's department as part of any sentence or disposition imposed. If the person is not
charged, is acquitted, or if the charges are dismissed, the sheriff shall return the fee to the
person at the last known address listed in the booking records.

Sec. 16. new text beginLEGISLATIVE COMMISSION ON MANDATE REFORM; FIRST
MEETING.
new text end

new text begin The first meeting of the Legislative Commission on Mandate Reform must be held
as soon as practicable after all appointments are made. The speaker of the house must
designate a commission member to convene the first meeting. The first commission serves
until a new commission is appointed at the beginning of the next biennium.
new text end

ARTICLE 5

TRUTH IN TAXATION

Section 1.

Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:


Subdivision 1.

Budgets; form of notification.

(a) Every board must publish revenue
and expenditure budgets for the current year and the actual revenues, expenditures, fund
balances for the prior year and projected fund balances for the current year in a form
prescribed by the commissioner within one week of the acceptance of the final audit by
the board, or November 30, whichever is earlier. The forms prescribed must be designed
so that year to year comparisons of revenue, expenditures and fund balances can be made.

(b) A school board annually must notify the public of its revenue, expenditures, fund
balances, and other relevant budget information. The board must deleted text begininclude the budget
information required by this section in the materials provided as a part of its truth in
taxation hearing,
deleted text end post the materials in a conspicuous place on the district's official Web
site, including a link to the district's school report card on the Department of Education's
Web site, and publish the information in a qualified newspaper of general circulation
in the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2008, section 275.065, subdivision 1, is amended to read:


Subdivision 1.

Proposed levy.

(a) Notwithstanding any law or charter to the
contrary, on or before September deleted text begin15deleted text endnew text begin 5new text end, each taxing authority, other than a school district,
shall adopt a proposed budget and shall certify to the county auditor the proposed or, in
the case of a town, the final property tax levy for taxes payable in the following year.

(b) On or before September deleted text begin30deleted text endnew text begin 20new text end, each school district that has not mutually agreed
with its home county to extend this date shall certify to the county auditor the proposed
property tax levy for taxes payable in the following year. Each school district that has
agreed with its home county to delay the certification of its proposed property tax levy
must certify its proposed property tax levy for the following year no later than deleted text beginOctober 7deleted text endnew text begin
September 28
new text end. The school district shall certify the proposed levy as:

(1) a specific dollar amount by school district fund, broken down between
voter-approved and non-voter-approved levies and between referendum market value
and tax capacity levies; or

(2) the maximum levy limitation certified by the commissioner of education
according to section 126C.48, subdivision 1.

(c) If the board of estimate and taxation or any similar board that establishes
maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
property tax levies for funds under its jurisdiction by charter to the county auditor by
September deleted text begin15deleted text endnew text begin 1new text end, the city shall be deemed to have certified its levies for those taxing
jurisdictions.

(d) For purposes of this section, "taxing authority" includes all home rule and
statutory cities, towns, counties, school districts, and special taxing districts as defined
in section 275.066. Intermediate school districts that levy a tax under chapter 124 or
136D, joint powers boards established under sections 123A.44 to 123A.446, and Common
School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing
districts for purposes of this section.

new text begin (e) At the meeting where a taxing authority, other than a town, adopts its proposed
tax levy under paragraph (a) or (b), the taxing authority shall announce the time and place
of its subsequent regularly scheduled meetings at which the budget levy will be discussed
and at which the public will be allowed to speak. The time and place of those meetings
must be included in the proceedings or summary of the proceedings published in the
official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed notices prepared in 2010
and thereafter, for property taxes payable in 2011 and thereafter, except that paragraph
(e) is effective for taxes payable in 2010 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2008, section 275.065, subdivision 1a, is amended to read:


Subd. 1a.

Overlapping jurisdictions.

In the case of a taxing authority lying in two
or more counties, the home county auditor shall certify the proposed levy and the proposed
local tax rate to the other county auditor by deleted text beginOctober 5deleted text endnew text begin September 25new text end, unless the home
county has agreed to delay the certification of its proposed property tax levy, in which case
the home county auditor shall certify the proposed levy and the proposed local tax rate
to the other county auditor by deleted text beginOctober 10deleted text endnew text begin September 30new text end. The home county auditor must
estimate the levy or rate in preparing the notices required in subdivision 3, if the other
county has not certified the appropriate information. If requested by the home county
auditor, the other county auditor must furnish an estimate to the home county auditor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed notices prepared in
2010 and thereafter, for property taxes payable in 2011 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2008, section 275.065, subdivision 1c, is amended to read:


Subd. 1c.

Levy; shared, merged, consolidated services.

If two or more taxing
authorities are in the process of negotiating an agreement for sharing, merging, or
consolidating services between those taxing authorities at the time the proposed levy is to
be certified under subdivision 1, each taxing authority involved in the negotiation shall
certify its total proposed levy as provided in that subdivision, including a notification to the
county auditor of the specific service involved in the agreement which is not yet finalized.
The affected taxing authorities may amend their proposed levies under subdivision 1 until
deleted text begin October 10deleted text endnew text begin September 25new text end for levy amounts relating only to the specific service involved.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed notices prepared in
2010 and thereafter, for property taxes payable in 2011 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2008, 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 deleted text beginNovember 10deleted text endnew text begin October 15new text end and on or before
deleted text begin Novemberdeleted text endnew text begin Octobernew text end 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. deleted text beginIn the case of taxing authorities required to hold a public meeting under
subdivision 6, the notice must clearly state that each taxing authority, including regional
library districts established under section 134.201, and including the metropolitan taxing
districts as defined in paragraph (i), but excluding all other special taxing districts and
towns, will hold a public meeting to receive public testimony on the proposed budget and
proposed or final property tax levy, or, in case of a school district, on the current budget
and proposed property tax levy.
deleted text end new text beginThe notice must clearly state for each city, county, school
district, regional library authority established under section 134.201, and metropolitan
taxing districts as defined in paragraph (i), the time and place of the taxing authorities'
regularly scheduled meetings occurring after October 24, at which the budget and levy
will be discussed. 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 shall be allowed to speak at that meeting.
new text endIt must deleted text beginclearly
state the time and place of each taxing authority's meeting,
deleted text endnew text begin providenew text end a telephone number for
the taxing authority that taxpayers may call if they have questions related to the noticedeleted text begin,deleted text end
and an address where comments will be received by mail.

(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 deleted text beginNovemberdeleted text endnew text begin Septembernew text end
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, net of the residential and agricultural homestead credit under section 273.1384, 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 deleted text beginNovemberdeleted text endnew text begin Octobernew text end 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 subdivisiondeleted text begin, subdivisionsdeleted text endnew text begin and subdivisionnew text end 5a deleted text beginand 6deleted text end,
"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 deleted text beginand shall be discussed at that
county's public hearing
deleted text end.

(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 for taxes payable in 2010 and
thereafter, except that the changes advancing the dates for preparing and mailing the
notices are effective for proposed notices in 2010, for taxes payable in 2011 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:


Subd. 6.

deleted text beginPublic hearing;deleted text end Adoption of budget and levy.

deleted text begin (a) For purposes of this
section, the following terms shall have the meanings given:
deleted text end

deleted text begin (1) "Initial hearing" means the first and primary hearing held to discuss the taxing
authority's proposed budget and proposed property tax levy for taxes payable in the
following year, or, for school districts, the current budget and the proposed property tax
levy for taxes payable in the following year.
deleted text end

deleted text begin (2) "Continuation hearing" means a hearing held to complete the initial hearing, if
the initial hearing is not completed on its scheduled date.
deleted text end

deleted text begin (3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final
property tax levy, and, in the case of taxing authorities other than school districts, the final
budget, for taxes payable in the following year.
deleted text end

deleted text begin (b) Between November 29 and December 20, the governing bodies of a city that has a
population over 500, county, metropolitan special taxing districts as defined in subdivision
3, paragraph (i), and regional library districts shall each hold an initial public hearing
to discuss and seek public comment on its final budget and property tax levy for taxes
payable in the following year, and the governing body of the school district shall hold an
initial public hearing to review its current budget and proposed property tax levy for taxes
payable in the following year. The metropolitan special taxing districts shall be required to
hold only a single joint initial public hearing, the location of which will be determined by
the affected metropolitan agencies. A city, county, metropolitan special taxing district as
defined in subdivision 3, paragraph (i), regional library district established under section
134.201, or school district is not required to hold a public hearing under this subdivision
unless its proposed property tax levy for taxes payable in the following year, as certified
under subdivision 1, has increased over its final property tax levy for taxes payable in the
current year by a percentage that is greater than the percentage increase in the implicit
price deflator for government consumption expenditures and gross investment for state
and local governments prepared by the Bureau of Economic Analysts of the United States
Department of Commerce for the 12-month period ending March 31 of the current year.
deleted text end

deleted text begin (c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No initial hearing may be held on a Sunday.
deleted text end

deleted text begin (d) At the initial hearing under this subdivision, the percentage increase in property
taxes proposed by the taxing authority, if any, and the specific purposes for which property
tax revenues are being increased must be discussed. During the discussion, the governing
body shall hear comments regarding a proposed increase and explain the reasons for the
proposed increase. The public shall be allowed to speak and to ask questions. At the public
hearing, the school district must also provide and discuss information on the distribution
of its revenues by revenue source, and the distribution of its spending by program area.
deleted text end

deleted text begin (e) If the initial hearing is not completed on its scheduled date, the taxing authority
must announce, prior to adjournment of the hearing, the date, time, and place for the
continuation of the hearing. The continuation hearing must be held at least five business
days but no more than 14 business days after the initial hearing. A continuation hearing
may not be held later than December 20 except as provided in paragraphs (f) and (g).
A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No continuation hearing may be held on a Sunday.
deleted text end

deleted text begin (f) The governing body of a county shall hold its initial hearing on the first Thursday
in December each year, and may hold additional initial hearings on other dates before
December 20 if necessary for the convenience of county residents. If the county needs a
continuation of its hearing, the continuation hearing shall be held on the third Tuesday
in December. If the third Tuesday in December falls on December 21, the county's
continuation hearing shall be held on Monday, December 20.
deleted text end

deleted text begin (g) The metropolitan special taxing districts shall hold a joint initial public hearing
on the first Wednesday of December. A continuation hearing, if necessary, shall be held on
the second Wednesday of December even if that second Wednesday is after December 10.
deleted text end

deleted text begin (h) The county auditor shall provide for the coordination of initial and continuation
hearing dates for all school districts and cities within the county to prevent conflicts under
clauses (i) and (j).
deleted text end

deleted text begin (i) By August 10, each school board and the board of the regional library district
shall certify to the county auditors of the counties in which the school district or regional
library district is located the dates on which it elects to hold its initial hearing and any
continuation hearing. If a school board or regional library district does not certify these
dates by August 10, the auditor will assign the initial and continuation hearing dates. The
dates elected or assigned must not conflict with the initial and continuation hearing dates
of the county or the metropolitan special taxing districts.
deleted text end

deleted text begin (j) By August 20, the county auditor shall notify the clerks of the cities within the
county of the dates on which school districts and regional library districts have elected to
hold their initial and continuation hearings. At the time a city certifies its proposed levy
under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and
any continuation hearing. Until September 15, the first and second Mondays of December
are reserved for the use of the cities. If a city does not certify its hearing dates by
September 15, the auditor shall assign the initial and continuation hearing dates. The dates
elected or assigned for the initial hearing must not conflict with the initial hearing dates
of the county, metropolitan special taxing districts, regional library districts, or school
districts within which the city is located. To the extent possible, the dates of the city's
continuation hearing should not conflict with the continuation hearing dates of the county,
metropolitan special taxing districts, regional library districts, or school districts within
which the city is located. This paragraph does not apply to cities of 500 population or less.
deleted text end

deleted text begin (k) The county initial hearing date and the city, metropolitan special taxing district,
regional library district, and school district initial hearing dates must be designated on
the notices required under subdivision 3. The continuation hearing dates need not be
stated on the notices.
deleted text end

deleted text begin (l) At a subsequent hearing, each county, school district, city over 500 population,
and metropolitan special taxing district may amend its proposed property tax levy
and must adopt a final property tax levy. Each county, city over 500 population, and
metropolitan special taxing district may also amend its proposed budget and must adopt a
final budget at the subsequent hearing. The final property tax levy must be adopted prior
to adopting the final budget. A school district is not required to adopt its final budget at the
subsequent hearing. The subsequent hearing of a taxing authority must be held on a date
subsequent to the date of the taxing authority's initial public hearing. If a continuation
hearing is held, the subsequent hearing must be held either immediately following the
continuation hearing or on a date subsequent to the continuation hearing. The subsequent
hearing may be held at a regularly scheduled board or council meeting or at a special
meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing
of a taxing authority does not have to be coordinated by the county auditor to prevent a
conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any
other taxing authority. All subsequent hearings must be held prior to five working days
after December 20 of the levy year. The date, time, and place of the subsequent hearing
must be announced at the initial public hearing or at the continuation hearing.
deleted text end

deleted text begin (m)deleted text endnew text begin (a)new text end The property tax levy certified under section 275.07 by a city of any
population, county, metropolitan special taxing district, regional library district, or school
district must not exceed the proposed levy determined under subdivision 1, except by an
amount up to the sum of the following amounts:

(1) the amount of a school district levy whose voters approved a referendum to
increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after
the proposed levy was certified;

(2) the amount of a city or county levy approved by the voters after the proposed
levy was certified;

(3) the amount of a levy to pay principal and interest on bonds approved by the
voters under section 475.58 after the proposed levy was certified;

(4) the amount of a levy to pay costs due to a natural disaster occurring after the
proposed levy was certified, if that amount is approved by the commissioner of revenue
under subdivision 6a;

(5) the amount of a levy to pay tort judgments against a taxing authority that become
final after the proposed levy was certified, if the amount is approved by the commissioner
of revenue under subdivision 6a;

(6) the amount of an increase in levy limits certified to the taxing authority by the
commissioner of education or the commissioner of revenue after the proposed levy was
certified; deleted text beginand
deleted text end

(7) the amount required under section 126C.55new text begin; and
new text end

new text begin (8) the amount of unallotment under section 16A.152 that was recertified under
section 275.07, subdivision 6
new text end.

deleted text begin (n)deleted text endnew text begin (b)new text end This subdivision does not apply to towns and special taxing districts other
than regional library districts and metropolitan special taxing districts.

deleted text begin (o)deleted text endnew text begin (c)new text end Notwithstanding the requirements of this section, the employer is required to
meet and negotiate over employee compensation as provided for in chapter 179A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 7.

Minnesota Statutes 2008, section 275.07, subdivision 1, is amended to read:


Subdivision 1.

Certification of levy.

(a) Except as provided under paragraph (b),
the taxes voted by cities, counties, school districts, and special districts shall be certified
by the proper authorities to the county auditor on or before five working days after
December deleted text begin20deleted text endnew text begin 10new text end in each year. A town must certify the levy adopted by the town board to
the county auditor by September deleted text begin15deleted text endnew text begin 5new text end each year. If the town board modifies the levy at
a special town meeting after September deleted text begin15deleted text endnew text begin 5new text end, the town board must recertify its levy to
the county auditor on or before five working days after December deleted text begin20deleted text endnew text begin 10new text end. If a city, town,
county, school district, or special district fails to certify its levy by that date, its levy shall
be the amount levied by it for the preceding year.

(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and
103B.251 shall be separately certified by the county to the county auditor on or before
five working days after December deleted text begin20deleted text endnew text begin 10new text end in each year. The taxes certified shall not be
reduced by the county auditor by the aid received under section 273.1398, subdivision
3
. If a county fails to certify its levy by that date, its levy shall be the amount levied by
it for the preceding year.

(ii) For purposes of the proposed property tax notice under section 275.065 and
the property tax statement under section 276.04, for the first year in which the county
implements the provisions of this paragraph, the county auditor shall reduce the county's
levy for the preceding year to reflect any amount levied for water management purposes
under clause (i) included in the county's levy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2011
and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2008, section 275.07, subdivision 4, is amended to read:


Subd. 4.

Report to commissioner.

(a) On or before deleted text beginOctober 8deleted text endnew text begin September 20new text end of
each year, the county auditor shall report to the commissioner of revenue the proposed
levy certified by local units of government under section 275.065, subdivision 1. If
any taxing authorities have notified the county auditor that they are in the process of
negotiating an agreement for sharing, merging, or consolidating services but that when
the proposed levy was certified under section 275.065, subdivision 1c, the agreement was
not yet finalized, the county auditor shall supply that information to the commissioner
when filing the report under this section and shall recertify the affected levies as soon as
practical after deleted text beginOctober 10deleted text endnew text begin September 25new text end.

(b) On or before January deleted text begin15deleted text endnew text begin 5new text end of each year, the county auditor shall report to the
commissioner of revenue the final levy certified by local units of government under
subdivision 1.

(c) The levies must be reported in the manner prescribed by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2011
and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2008, section 375.194, subdivision 5, is amended to read:


Subd. 5.

Determination of county tax rate.

The eligible county's proposed and
final tax rates shall be determined by dividing the certified levy by the total taxable net tax
capacity, without regard to any abatements granted under this section. deleted text beginThe county board
shall make available the estimated amount of the abatement at the public hearing under
section 275.065, subdivision 6.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 10.

Minnesota Statutes 2008, section 383A.75, subdivision 3, is amended to read:


Subd. 3.

Duties.

The committee is authorized to and shall meet from time to time
to make appropriate recommendations for the efficient and effective use of property tax
dollars raised by the jurisdictions for programs, buildings, and operations. In addition,
the committee shall:

(1) identify trends and factors likely to be driving budget outcomes over the next
five years with recommendations for how the jurisdictions should manage those trends
and factors to increase efficiency and effectiveness;

(2) agree, by October 1 of each year, on the appropriate level of overall property tax
levy for the three jurisdictions and publicly report such to the governing bodies of each
jurisdiction for ratification or modification by resolution;new text begin and
new text end

deleted text begin (3) plan for the joint truth-in-taxation hearings under section 275.065, subdivision
8
; and
deleted text end

deleted text begin (4)deleted text endnew text begin (3)new text end identify, by December 31 of each year, areas of the budget to be targeted in
the coming year for joint review to improve services or achieve efficiencies.

In carrying out its duties, the committee shall consult with public employees of
each jurisdiction and with other stakeholders of the city, county, and school district, as
appropriate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 11.

Minnesota Statutes 2008, section 446A.086, subdivision 8, is amended to read:


Subd. 8.

Tax levy for repayment.

(a) With the approval of the authority, a
governmental unit may levy in the year the state makes a payment under this section an
amount up to the amount necessary to provide funds for the repayment of the amount paid
by the state plus interest through the date of estimated repayment by the governmental
unit. The proceeds of this levy may be used only for this purpose unless they exceed the
amount actually due. Any excess must be used to repay other state payments made under
this section or must be deposited in the debt redemption fund of the governmental unit.
The amount of aids to be reduced to repay the state are decreased by the amount levied.

(b) If the state is not repaid in full for a payment made under this section by
November 30 of the calendar year following the year in which the state makes the
payment, the authority shall require the governmental unit to certify a property tax levy in
an amount up to the amount necessary to provide funds for repayment of the amount paid
by the state plus interest through the date of estimated repayment by the governmental unit.
To prevent undue hardship, the authority may allow the governmental unit to certify the
levy over a five-year period. The proceeds of the levy may be used only for this purpose
unless they are in excess of the amount actually due, in which case the excess must be used
to repay other state payments made under this section or must be deposited in the debt
redemption fund of the governmental unit. If the authority orders the governmental unit to
levy, the amount of aids reduced to repay the state are decreased by the amount levied.

deleted text begin (c) A levy under this subdivision is an increase in the levy limits of the governmental
unit for purposes of section 275.065, subdivision 6, and must be explained as a specific
increase at the meeting required under that provision.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 12.

Minnesota Statutes 2008, section 465.719, subdivision 9, is amended to read:


Subd. 9.

Application of other laws.

A corporation created by a political subdivision
under this section must comply with every law that applies to the political subdivision,
as if the corporation is a part of the political subdivision, unless the resolution ratifying
creation of the corporation specifically exempts the corporation from part or all of a law.
If the resolution exempts the corporation from part or all of a law, the resolution must
make a detailed and specific finding as to why the corporation cannot fulfill its purpose if
the corporation is subject to that law. A corporation may not be exempted from chapter
13D, the Minnesota Open Meeting Law, sections 138.163 to 138.25, governing records
management, or chapter 13, the Minnesota Government Data Practices Act. Any affected
or interested person may bring an action in district court to void the resolution on the
grounds that the findings are not sufficiently detailed and specific, or that the corporation
can fulfill its purpose if it is subject to the law from which the resolution exempts the
corporation. Laws that apply to a political subdivision that also apply to a corporation
created by a political subdivision under this subdivision include, but are not limited to:

(1) chapter 13D, the Minnesota Open Meeting Law;

(2) chapter 13, the Minnesota Government Data Practices Act;

(3) section 471.345, the Uniform Municipal Contracting Law;

(4) sections 43A.17, limiting the compensation of employees based on the governor's
salary; 471.991 to 471.999, providing for equitable pay; and 465.72 and 465.722,
governing severance pay;

deleted text begin (5) section 275.065, providing for truth-in-taxation hearings. If any tax revenues of
the political subdivision will be appropriated to the corporation, the corporation's annual
operating and capital budgets must be included in the truth-in-taxation hearing of the
political subdivision that created the corporation;
deleted text end

deleted text begin (6)deleted text endnew text begin (5)new text end if the corporation issues debt, its debt is included in the political subdivision's
debt limit if it would be included if issued by the political subdivision, and issuance of the
debt is subject to the election and other requirements of chapter 475 and section 471.69;

deleted text begin (7)deleted text endnew text begin (6)new text end section 471.895, prohibiting acceptance of gifts from interested parties, and
sections 471.87 to 471.89, relating to interests in contracts;

deleted text begin (8)deleted text endnew text begin (7)new text end chapter 466, relating to municipal tort liability;

deleted text begin (9)deleted text endnew text begin (8)new text end chapter 118A, requiring deposit insurance or bond or pledged collateral for
deposits;

deleted text begin (10)deleted text endnew text begin (9)new text end chapter 118A, restricting investments;

deleted text begin (11)deleted text endnew text begin (10)new text end section 471.346, requiring ownership of vehicles to be identified;

deleted text begin (12)deleted text endnew text begin (11)new text end sections 471.38 to 471.41, requiring claims to be in writing, itemized, and
approved by the governing board before payment can be made; and

deleted text begin (13)deleted text endnew text begin (12)new text end the corporation cannot make advances of pay, make or guarantee loans to
employees, or provide in-kind benefits unless authorized by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 13.

Minnesota Statutes 2008, section 473.13, subdivision 1, is amended to read:


Subdivision 1.

Budget.

(a) On or before December deleted text begin20deleted text endnew text begin 10new text end of each yearnew text begin,new text end the councildeleted text begin,
after the public hearing required in section 275.065,
deleted text end shall adopt a final budget covering its
anticipated receipts and disbursements for the ensuing year and shall decide upon the total
amount necessary to be raised from ad valorem tax levies to meet its budget. The budget
shall state in detail the expenditures for each program to be undertaken, including the
expenses for salaries, consultant services, overhead, travel, printing, and other items. The
budget shall state in detail the capital expenditures of the council for the budget year, based
on a five-year capital program adopted by the council and transmitted to the legislature.
After adoption of the budget and no later than five working days after December 20, the
council shall certify to the auditor of each metropolitan county the share of the tax to be
levied within that county, which must be an amount bearing the same proportion to the
total levy agreed on by the council as the net tax capacity of the county bears to the net tax
capacity of the metropolitan area. The maximum amount of any levy made for the purpose
of this chapter may not exceed the limits set by the statute authorizing the levy.

(b) Each even-numbered year the council shall prepare for its transit programs a
financial plan for the succeeding three calendar years, in half-year segments. The financial
plan must contain schedules of user charges and any changes in user charges planned or
anticipated by the council during the period of the plan. The financial plan must contain a
proposed request for state financial assistance for the succeeding biennium.

(c) In addition, the budget must show for each year:

(1) the estimated operating revenues from all sources including funds on hand at the
beginning of the year, and estimated expenditures for costs of operation, administration,
maintenance, and debt service;

(2) capital improvement funds estimated to be on hand at the beginning of the year
and estimated to be received during the year from all sources and estimated cost of capital
improvements to be paid out or expended during the year, all in such detail and form as
the council may prescribe; and

(3) the estimated source and use of pass-through funds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter, except that the date change in certifying the budget is effective for taxes
payable in 2011 and thereafter.
new text end

Sec. 14. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 275.065, subdivisions 5a, 6b, 6c, 8, 9, and 10, new text end new text begin are
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

ARTICLE 6

PROPERTY TAX

Section 1.

Minnesota Statutes 2008, section 40A.09, is amended to read:


40A.09 AGRICULTURAL PRESERVE; ELIGIBILITY.

new text begin Subdivision 1. new text end

new text begin Basic requirements. new text end

An owner or owners of land that has been
designated for exclusive long-term agricultural use under a plan submitted to or approved
by the commissioner is eligible to apply for the creation of an agricultural preserve.
Eligibility continues unless the commissioner determines that the plan and official
controls do not address the elements contained in this chapter or unless the county fails to
implement the plan and official controls as required by this chapter.

new text begin Subd. 2. new text end

new text begin Termination of eligibility. new text end

new text begin (a) A parcel of property enrolled under this
section whose owner is subject to a final enforcement action for a violation of chapter 18B,
18C, 103E, 103F, 103G, or 103H, or any rule adopted under these chapters including but
not limited to the agricultural shoreland use standards in Minnesota Rules, chapter 6120,
occurring on the parcel, shall be removed from the program.
new text end

new text begin (b) For the purposes of this subdivision, "final enforcement action" means any
administrative, civil, or criminal penalty other than an initial verbal or written warning.
An enforcement action is not final until any time period for corrective action has expired,
and until the completion or expiration of any applicable review or appeal procedure or
period provided by law.
new text end

new text begin (c) When a final enforcement action is taken based on a violation occurring on a
parcel enrolled under sections 40A.09 to 40A.12, the law enforcement officer or other
person enforcing the law or rule must notify the county assessor. The county assessor
must then notify the property owner that the parcel is being removed from the program.
Any parcel for which the assessor has been notified prior to March 1 of any year shall
be removed from the program for taxes payable in the following year. The assessor shall
calculate (i) the amount of any credit received under section 273.119 for the current year,
and (ii) the difference between the actual tax on the parcel for the current year and the
tax that would apply if the value was not restricted under this section, and multiply the
result by the number of years that the parcel has been under its current ownership or
five, whichever is less. The resulting amount plus any special assessments that have
been deferred under this section shall be extended against the property on the tax list for
the current year, provided that no interest or penalties shall be levied on the additional
taxes if timely paid.
new text end

new text begin (d) Termination of eligibility under this subdivision shall not affect the covenant
required under section 40A.10. A parcel of property terminated under this subdivision may
not be reenrolled for a period of three years, unless it has been sold or transferred so that it
is no longer under the same ownership, in full or in part, as when the parcel was terminated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2011 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2008, section 272.02, subdivision 7, is amended to read:


Subd. 7.

Institutions of public charity.

new text begin(a) new text endInstitutions of purely public charity new text beginthat
are exempt from federal income taxation under section 501(c)(3) of the Internal Revenue
Code
new text endare exemptdeleted text begin.deleted text endnew text begin if they meet the requirements of this subdivision. In determining
whether real property is exempt under this subdivision, the following factors must be
considered:
new text end

new text begin (1) whether the stated purpose of the undertaking is to be helpful to others without
immediate expectation of material reward;
new text end

new text begin (2) whether the institution of public charity is supported by material donations, gifts,
or government grants for services to the public in whole or in part;
new text end

new text begin (3) whether a material number of the recipients of the charity receive benefits or
services at reduced or no cost, or whether the organization provides services to the public
that alleviate burdens or responsibilities that would otherwise be borne by the government;
new text end

new text begin (4) whether the income received, including material gifts and donations, produces a
profit to the charitable institution that is distributed to private interests;
new text end

new text begin (5) whether the beneficiaries of the charity are restricted or unrestricted, and, if
restricted, whether the class of persons to whom the charity is made available is one
having a reasonable relationship to the charitable objectives; and
new text end

new text begin (6) whether dividends, in form or substance, or assets upon dissolution, are available
to private interests.
new text end

new text begin A charitable organization must satisfy the factors in clauses (1) to (6) for its property
to be exempt under this subdivision, unless there is a reasonable justification for failing to
meet the factors in clause (2), (3), or (5). If there is reasonable justification for failing to
meet the factors in clause (2), (3), or (5), an organization is a purely public charity under
this subdivision without meeting those factors. After an exemption is properly granted
under this subdivision, it will remain in effect unless there is a material change in facts.
new text end

new text begin (b) For purposes of this subdivision, a grant is a written instrument or electronic
document defining a legal relationship between a granting agency and a grantee when
the principal purpose of the relationship is to transfer cash or something of value to the
grantee to support a public purpose authorized by law in a general manner instead of
acquiring by professional or technical contract, purchase, lease, or barter property or
services for the direct benefit or use of the granting agency.
new text end

new text begin (c)new text end In determining whether rental housing property qualifies for exemption under
this subdivision, the following are not gifts or donations to the owner of the rental housing:

(1) rent assistance provided by the government to or on behalf of tenants; and

(2) financing assistance or tax credits provided by the government to the owner on
condition that specific units or a specific quantity of units be set aside for persons or
families with certain income characteristics.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 3.

Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 90. new text end

new text begin Nursing homes. new text end

new text begin A nursing home licensed under section 144A.02 or a
boarding care home certified as a nursing facility under title 19 of the Social Security
Act that is exempt from federal income taxation pursuant to section 501(c)(3) of the
Internal Revenue Code is exempt from property taxation if the nursing home or boarding
care home either:
new text end

new text begin (1) is certified to participate in the medical assistance program under title 19 of
the Social Security Act; or
new text end

new text begin (2) certifies to the commissioner of revenue that it does not discharge residents
due to the inability to pay.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 4.

Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 91. new text end

new text begin Railroad wye connections. new text end

new text begin Any real or personal property of a railroad
wye connection, including the track, ties, ballast, switch gear, and related improvements,
is exempt if it meets all of the following: (1) is publicly owned; (2) is funded, in whole or
in part, by state grants; (3) is located within the metropolitan area as defined in section
473.121, subdivision 2; (4) includes a single track segment that is no longer than 2,500 feet
in length; (5) connects intersecting rail lines; and (6) is constructed after January 1, 2009.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter, for taxes payable in 2010 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 92. new text end

new text begin Electric generation facility; personal property. new text end

new text begin (a) Notwithstanding
subdivision 9, clause (a), attached machinery and other personal property that is part of
an electric generation facility that exceeds 150 megawatts of installed capacity, does
not exceed 780 megawatts of summer capacity, and that meets the requirements of this
subdivision, is exempt. At the start of construction, the facility must:
new text end

new text begin (1) be designed to utilize natural gas as a primary fuel;
new text end

new text begin (2) be owned by an entity other than a public utility as defined in section 216B.02,
subdivision 4;
new text end

new text begin (3) be located within five miles of two or more interstate natural gas pipelines;
new text end

new text begin (4) be located within one mile of an existing electrical transmission substation with
operating alternating current voltages of 115 kV, 345 kV, and 500 kV;
new text end

new text begin (5) be designed to provide electrical capacity, energy, and ancillary services;
new text end

new text begin (6) have satisfied all of the requirements under section 216B.243;
new text end

new text begin (7) have executed an interconnection agreement with the Midwest Independent
System Operator that does not require the acquisition of more than one mile of new
electric transmission right-of-way within the county where the facility is located, and does
not provide for any other new routes or corridors for future electric transmission lines in
the county where the facility is located;
new text end

new text begin (8) be located in a county with an essential services and transmission services
ordinance;
new text end

new text begin (9) have signed a development agreement with the county board in the county in
which the facility is located. The development agreement must be adopted by a two-thirds
vote of the county board, and must contain provisions ensuring that:
new text end

new text begin (i) the facility is designed to use effluent from a wastewater treatment facility as its
preferred water source and will not seek an exemption from legislative approval under
section 103G.265, subdivision 3, paragraph (b);
new text end

new text begin (ii) all processed wastewater discharge will be colocated with the outfall of a
wastewater treatment facility; and
new text end

new text begin (iii) penalties will be paid to the county for harm to any aquifer or surface water as a
result of construction or operation and maintenance of the facility; and
new text end

new text begin (10) have signed a development agreement with the township board in the township
in which the facility is located containing provisions ensuring that noise and visual
impacts of the facility are fully mitigated. The development agreement must be adopted
by a two-thirds vote of the township board.
new text end

new text begin (b) Construction of the facility must begin after March 1, 2010, and before March 1,
2014. Property eligible for this exemption does not include electric transmission lines and
interconnections or gas pipelines and interconnections appurtenant to the facility.
new text end

new text begin (c) The exemption granted under this subdivision is void if the Public Utilities
Commission issues a route permit for an electric transmission line connected to the
electric substation nearest the exempt facility on a route where no electric transmission
line currently exists.
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 [272.0275] PERSONAL PROPERTY USED TO GENERATE
ELECTRICITY; EXEMPTION.
new text end

new text begin Subdivision 1. new text end

new text begin New plant construction after January 1, 2010. new text end

new text begin For a new
generating plant built and placed in service after January 1, 2010, its personal property
used to generate electric power is exempt if an exemption of generation personal property
form, with an attached siting agreement, is filed with the Department of Revenue. The
form must be signed by the utility, and the county and the city or town where the facility is
proposed to be located.
new text end

new text begin Subd. 2. new text end

new text begin Definition; applicability. new text end

new text begin For purposes of this section, "personal property"
means tools, implements, and machinery of the generating plant. The exemption under this
section does not apply to transformers, transmission lines, distribution lines, or any other
tools, implements, and machinery that are part of an electric substation, wherever located.
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.

Minnesota Statutes 2008, section 272.029, subdivision 6, is amended to read:


Subd. 6.

Distribution of revenues.

Revenues from the taxes imposed under
subdivision 5 must be part of the settlement between the county treasurer and the county
auditor under section 276.09. The revenue must be distributed by the county auditor or the
county treasurer to local taxing jurisdictions in which the wind energy conversion system
is located as follows: beginning with distributions in deleted text begin2006deleted text endnew text begin 2010, 80 percent to counties;
and 20 percent to cities and townships; and for distributions occurring in 2006 to 2009
new text end, 80
percent to counties; 14 percent to cities and townships; and six percent to school districtsdeleted text begin;
and for distributions occurring in 2004 and 2005 in the same proportion that each of the
local taxing jurisdiction's current year's net tax capacity based tax rate is to the current
year's total local net tax capacity based rate
deleted text end.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2008, section 273.111, is amended by adding a subdivision
to read:


new text begin Subd. 9a. new text end

new text begin Cross-compliance with agricultural chemical and water laws.
new text end

new text begin (a) A parcel of property enrolled under this section whose owner is subject to a final
enforcement action for a violation of chapter 18B, 18C, 103E, 103F, 103G, or 103H,
or any rule adopted under these chapters including but not limited to the agricultural
shoreland use standards in Minnesota Rules, chapter 6120, occurring on the parcel, shall
be removed from the program.
new text end

new text begin (b) For the purposes of this subdivision, "final enforcement action" means any
administrative, civil, or criminal penalty other than an initial verbal or written warning.
An enforcement action is not final until any time period for corrective action has expired,
and until the completion or expiration of any applicable review or appeal procedure or
period provided by law.
new text end

new text begin (c) When a final enforcement action is taken based on a violation occurring on a
parcel enrolled under this section, the law enforcement officer or other person enforcing
the law or rule must notify the county assessor. The county assessor must then notify
the property owner that the parcel is being removed from the program. Any parcel for
which the assessor has been notified prior to March 1 of any year shall be removed from
the program for taxes payable in the following year. All deferred taxes on the parcel
during the current owner's time of ownership, but not to exceed five years, plus any
special assessments that have been deferred, shall be extended against the property on the
tax list for the current year, provided that no interest or penalties shall be levied on the
additional taxes if timely paid.
new text end

new text begin (d) A parcel of property terminated under this subdivision may not be reenrolled for
a period of three years, unless it has been sold or transferred so that it is no longer under
the same ownership, in full or in part, as when the parcel was terminated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2011 and
thereafter.
new text end

Sec. 9.

new text begin [273.115] PRESERVATION OF RIPARIAN BUFFERS.
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) "Riparian buffer" means a strip or area of deep-rooted, original native perennial
vegetation or vegetation restored with plants or seeds that originate from sources as close
to the site as possible, including trees, adjacent to public waters that extends a minimum
of 50 and a maximum of 100 feet landward from the ordinary high water level.
new text end

new text begin (c) "Public waters" has the same meaning as defined under section 103G.005,
subdivision 15, excluding "wetlands," as defined under section 103G.005, subdivision 19,
and "public waters wetlands," as defined under section 103G.005, subdivision 15a.
new text end

new text begin (d) "Ordinary high water level" means the boundary of public waters, and shall be an
elevation delineating the highest water level which has been maintained for a sufficient
period of time to leave evidence upon the landscape, commonly that point where the
natural vegetation changes from predominantly aquatic to predominantly terrestrial. For
watercourses, the ordinary high water level is the elevation of the top of the bank of
the channel. For reservoirs and flowages, the ordinary high water level is the operating
elevation of the normal summer pool.
new text end

new text begin (e) "Buffer maintenance" means:
new text end

new text begin (1) inspecting the buffer periodically and identifying, repairing, and reseeding any
eroded or damaged areas;
new text end

new text begin (2) preventing or addressing any soil compaction from vehicles, livestock, and
impervious surfaces that could inhibit infiltration or disrupt water flow patterns;
new text end

new text begin (3) controlling weeds and managing any grazing livestock so as to minimize the
removal or alteration of the perennial plant community; and
new text end

new text begin (4) refraining from applying fertilizers, pesticides, or animal wastes to the buffer
area, except to establish native vegetation.
new text end

new text begin Subd. 2. new text end

new text begin Requirements. new text end

new text begin (a) Land constituting a riparian buffer that is classified as
class 2a under section 273.13, subdivision 23, or that is adjacent to land classified as class
2a, is entitled to valuation and tax deferment under this section if a covenant has been filed
with the county assessor and recorded in the county where the property is located.
new text end

new text begin (b) The covenant must state that the buffer will be maintained in a natural state and
that annual buffer maintenance will be performed. The landowner must file an affidavit
with the county assessor at least once every three years stating that the buffer has been
maintained according to the definition in subdivision 1. If a landowner fails to meet
this requirement, the assessor must issue a written warning. If an affidavit is not filed
within 90 days of the written warning, the land shall be removed from the program. All
deferred taxes on the property during the current owner's time of ownership shall be
extended against the property on the tax list for the current year, provided that no interest
or penalties shall be levied on the additional taxes if timely paid.
new text end

new text begin (c) Land qualifying under this subdivision shall be liable only for the taxes
determined based on the valuation prescribed in subdivision 3. All special assessments
levied against the land after the property has been enrolled in the program shall be deferred
until the property is withdrawn or becomes ineligible to continue in the program.
new text end

new text begin (d) Real estate may not be enrolled for valuation and deferment under this section
and section 273.111, 273.112, 273.114, or 273.117 concurrently. Land enrolled under
section 273.111 that is withdrawn for enrollment under this subdivision shall not be
required to pay additional taxes under section 273.111, subdivision 3a or 9.
new text end

new text begin Subd. 3. new text end

new text begin Determination of value. new text end

new text begin (a) Land for which an irrevocable covenant has
been recorded must be valued at 25 percent of the average value per acre of class 2b
rural vacant land in the surrounding area.
new text end

new text begin (b) Land for which a revocable covenant has been recorded must be valued at 75
percent of the average value per acre of class 2b rural vacant land in the surrounding
area, provided that the covenant does not allow for its termination until at least 20 years
from the date that it was originally recorded.
new text end

new text begin (c) For the purposes of this subdivision, surrounding area means the city or township
where the property is located, provided that there are at least ten other parcels containing
class 2b land in the city or township; otherwise, "surrounding area" means the city or
township where the property is located and all adjoining cities and townships within the
same county.
new text end

new text begin Subd. 4. new text end

new text begin Separate determination of market value and tax. new text end

new text begin The assessor shall
make a separate determination of the market value of the real estate based on its highest
and best use. The tax based upon that value and the appropriate local tax rate applicable to
the property in the taxing district shall be recorded on the property assessment records.
new text end

new text begin Subd. 5. new text end

new text begin Application and covenant agreement. new text end

new text begin (a) Application for deferment of
taxes and assessments under this subdivision shall be filed by May 1 of the year prior to
the year in which the taxes are payable. Any application filed under this subdivision and
granted shall continue in effect for subsequent years until the termination of the covenant
agreement under paragraph (b). The application must be filed with the county assessor on
a form prescribed by the commissioner of revenue. The assessor may require proof by
affidavit or otherwise that the property qualifies under subdivision 1.
new text end

new text begin (b) The owner of the property must sign a covenant agreement that is filed with the
county assessor and recorded in the county where the property is located. The covenant
agreement must include all of the following:
new text end

new text begin (1) legal description of the area to which the covenant applies;
new text end

new text begin (2) name and address of the owner;
new text end

new text begin (3) a statement that the land described in the covenant must be kept in a natural state,
and that annual buffer maintenance will be performed, for the duration of the covenant;
new text end

new text begin (4) in the case of a revocable covenant under subdivision 3, paragraph (b), a
statement that the landowner may terminate the covenant agreement by notifying the
county assessor in writing four years in advance of the date of proposed termination,
provided that the notice of intent to terminate may not be given at any time before the land
has been subject to the covenant for a period of 16 years;
new text end

new text begin (5) a statement that the covenant is binding on the owner or the owner's successor or
assigns and runs with the land; and
new text end

new text begin (6) a witnessed signature of the owner, agreeing by covenant, to maintain the land as
described in subdivision 2.
new text end

new text begin (c) Once a revocable covenant has been terminated, the property covered by
the covenant can never be re-enrolled under this subdivision unless it has been sold or
otherwise transferred to a different owner.
new text end

new text begin Subd. 6. new text end

new text begin Additional taxes. new text end

new text begin Upon termination of a covenant agreement in
subdivision 5, paragraph (b), clause (4), the land to which the covenant applied shall
be subject to additional taxes in the amount equal to the difference between the taxes
determined in accordance with subdivision 3 and the amount determined under subdivision
4, provided that the amount determined under subdivision 4 shall not be greater than it
would have been had the actual bona fide sale price of the real property at an arm's-length
transaction been used in lieu of the market value determined under subdivision 4. The
additional taxes shall be extended against the property on the tax list for the current year,
provided that no interest or penalties shall be levied on the additional taxes if timely paid
and that the additional taxes shall only be levied with respect to the last seven years that
the property has been valued and assessed under this section.
new text end

new text begin Subd. 7. new text end

new text begin Cross-compliance with agricultural chemical and water laws. new text end

new text begin (a) A
parcel of property enrolled under this section whose owner or tenant is subject to a final
enforcement action for a violation of chapter 18B, 18C, 103E, 103F, 103G, or 103H,
or any rule adopted under these chapters including but not limited to the agricultural
shoreland use standards in Minnesota Rules, chapter 6120, occurring on the parcel, shall
be removed from the program.
new text end

new text begin (b) For the purposes of this subdivision, "final enforcement action" means any
administrative, civil, or criminal penalty or action other than an initial verbal or written
warning. An enforcement action is not final until any time period for corrective action
has expired, and until the completion or expiration of any applicable review or appeal
procedure or period provided by law.
new text end

new text begin (c) When a final enforcement action is taken based on a violation occurring on a
parcel enrolled under this section, the law enforcement officer or other person enforcing
the law or rule must notify the county assessor. The county assessor must then notify
the property owner that the parcel is being removed from the program. Any parcel for
which the assessor has been notified prior to March 1 of any year shall be removed from
the program for taxes payable in the following year, and subject to additional taxes as
provided in subdivision 6.
new text end

new text begin (d) Termination of eligibility under this subdivision shall not affect the covenant
required under subdivision 5. A parcel of property terminated under this subdivision may
not be reenrolled for a period of three years, unless it has been sold or transferred so that it
is no longer under the same ownership, in full or in part, as when the parcel was terminated.
new text end

new text begin Subd. 8. new text end

new text begin Lien. new text end

new text begin Any additional taxes imposed under subdivision 6 or 7 shall be a lien
upon the property assessed to the same extent and for the same duration as other taxes
imposed on the property in this state. The tax shall be annually extended by the county
auditor and, if and when payable, shall be collected and distributed in the manner provided
by law for the collection and distribution of other property taxes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2011 and
thereafter, for taxes payable in 2012 and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2008, section 273.1231, subdivision 1, is amended to read:


Subdivision 1.

Applicability.

For purposes of sections 273.1231 to deleted text begin273.1235deleted text endnew text begin
273.1236
new text end, the following words, terms, and phrases have the meanings given them in this
section unless the language or context clearly indicates that a different meaning is intended.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter.
new text end

Sec. 11.

Minnesota Statutes 2008, section 273.1232, subdivision 1, is amended to read:


Subdivision 1.

Reassessments required.

For the purposes of sections 273.1231 to
deleted text begin 273.1235deleted text endnew text begin 273.1236new text end, the county assessor must reassess all damaged property in a disaster
or emergency area, except that the commissioner of revenue shall reassess all property
for which an application is submitted to the commissioner under section 273.1233 or
273.1235. As soon as practical, the assessor or commissioner of revenue must report
the reassessed value to the county auditor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter.
new text end

Sec. 12.

new text begin [273.1236] DISASTER-DAMAGED HOMES; PARTIAL VALUATION
EXCLUSION.
new text end

new text begin (a) A homestead property that (1) sustained physical damage from a disaster or
emergency resulting in a reassessed market value that is at least $15,000 less than the
market value of the property established for the January 2 assessment in the year in which
the damage occurred, (2) has been substantially restored or rebuilt by the end of the
year following the year in which the damage occurred, (3) has a gross living area after
reconstruction that does not exceed 130 percent of the gross living area prior to the disaster
or emergency, and (4) has an estimated market value for the assessment year following the
year in which the restoration or reconstruction was substantially completed that exceeds
its estimated market value established for the January 2 assessment in the year in which
the damage occurred by at least $25,000 due to the restoration or reconstruction, is eligible
for a valuation exclusion under this section for the two assessment years immediately
following the year in which the restoration or reconstruction was completed.
new text end

new text begin (b) The assessor shall determine the difference between the estimated market value
established for the January 2 assessment in the year in which the damage occurred and the
estimated market value established for the January 2 assessment in the year following the
completion of the restoration or reconstruction.
new text end

new text begin (c) In the first assessment year following the restoration or reconstruction, all of the
difference identified under paragraph (b) shall be excluded in determining taxable market
value. In the second assessment year following the restoration or reconstruction, half of
the difference identified under paragraph (b) shall be excluded in determining taxable
market value.
new text end

new text begin (d) For the purposes of this section, "gross living area" includes only above-grade
living area, and does not include any finished basement living area.
new text end

new text begin (e) Application for the valuation exclusion under this section must be filed by
January 2 of the year following the year in which the restoration or reconstruction was
substantially completed. The application must be filed with the assessor of the county in
which the property is located on the form prescribed by the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter. The application deadline in paragraph (e) is extended to June 30, 2009, for
restoration or reconstruction substantially completed in 2008.
new text end

Sec. 13.

Minnesota Statutes 2008, 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).new text begin In the case of
nonagricultural property, this paragraph only applies to applications approved before
December 16, 2009.
new text end

(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 son, daughter, brother,
sister, grandson, granddaughter, father, or mother of the owner of the agricultural property
or a son, daughter, brother, sister, grandson, or granddaughter of the spouse of the owner
of the agricultural property;

(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. Homestead treatment, in whole or in part, shall not be denied to
the owner's spouse who previously occupied the residence with the owner if the absence
of the owner is due to one of the exceptions provided in this paragraph.

(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 the day following final enactment.
new text end

Sec. 14.

Minnesota Statutes 2008, section 273.13, subdivision 25, is amended to read:


Subd. 25.

Class 4.

(a) Class 4a is residential real estate containing four or more
units and used or held for use by the owner or by the tenants or lessees of the owner
as a residence for rental periods of 30 days or more, excluding property qualifying for
class 4d. Class 4a also includes hospitals licensed under sections 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 class rate of 1.25 percent.

(b) Class 4b includes:

(1) residential real estate containing less than four units that does not qualify as class
4bb, other than seasonal residential recreational property;

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

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

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

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

(c) Class 4bb includes:

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

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

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

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

(d) Class 4c property includes:

(1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph
(b), clause (1), real and personal property devoted to temporary and seasonal residential
occupancy for recreation purposes, including real and personal property devoted to
temporary and seasonal residential occupancy for recreation purposes and not devoted to
commercial purposes for more than 250 days in the year preceding the year of assessment.
For purposes of this clause, property is devoted to a commercial purpose on a specific
day if any portion of the property is used for residential occupancy, and a fee is charged
for residential occupancy. Class 4c property 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.
new text begin Except for property described in item (iii), new text endclass 4c property must provide recreational
activities such as renting ice fishing houses, boats and motors, snowmobiles, downhill or
cross-country ski equipment; provide marina services, launch services, or guide services;
or sell bait and fishing tackle. A camping pad offered for rent by a property that otherwise
qualifies for class 4c is also class 4c regardless of the term of the rental agreement, as
long as the use of the camping pad does not exceed 250 days. In order for a property to
be classified as class 4c, seasonal residential recreational for commercial purposes under
this clause, at least 40 percent of the annual gross lodging receipts related to the property
must be from business conducted during 90 consecutive days and either (i) at least 60
percent of all paid bookings by lodging guests during the year must be for periods of at
least two consecutive nights; deleted text beginordeleted text end (ii) at least 20 percent of the annual gross receipts must
be from charges for rental of fish houses, boats and motors, snowmobiles, downhill or
cross-country ski equipment, or charges for marina services, launch services, and guide
services, or the sale of bait and fishing tacklenew text begin; or (iii) the property contains 20 rental units
or less, is devoted to temporary residential occupancy, is located in a township or a city
that has a population of 2,500 or less, and is located outside the metropolitan area as
defined under section 473.121, subdivision 2
new text end. For purposes of this determination, a paid
booking of five or more nights shall be counted as two bookings. Class 4c also includes
commercial use real property used exclusively for recreational purposes in conjunction
with class 4c property devoted to temporary and seasonal residential occupancy for
recreational purposes, up to a total of two acres, provided the property is not devoted
to commercial recreational use for more than 250 days in the year preceding the year
of assessment and is located within two miles of the class 4c property with which it is
used. Owners of real and personal property devoted to temporary and seasonal residential
occupancy for recreation purposes and all or a portion of which was devoted to commercial
purposes for not more than 250 days in the year preceding the year of assessment desiring
classification as class 4c, must submit a declaration to the assessor designating the cabins
or units occupied for 250 days or less in the year preceding the year of assessment by
January 15 of the assessment year. Those cabins or units and a proportionate share of the
land on which they are located must be designated class 4c 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 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;

(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 that is not used for residential
purposes on either a temporary or permanent basis, qualifies for class 4c provided that
it meets either of the following:

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

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

For purposes of this clause,

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

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

(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt
from federal income taxation pursuant to section 501(c)(3), (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 qualifying under item (i) which is used for revenue-producing
activities for more than six days in the calendar year preceding the year of assessment
shall be assessed as class 3a. The use of the property for social events open exclusively
to members and their guests for periods of less than 24 hours, when an admission is
not charged nor any revenues are received by the organization shall not be considered a
revenue-producing activity.

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

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

(5) manufactured home parks as defined in section 327.14, subdivision 3;

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

(7) a leased or privately owned noncommercial aircraft storage hangar not exempt
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; and

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

Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
parcel of seasonal residential recreational property not used for commercial purposes has
the same class rates as class 4bb property, (ii) manufactured home parks assessed under
clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal
residential recreational property has a class rate of one percent for the first $500,000 of
market value, and 1.25 percent for the remaining market value, (iv) the market value of
property described in clause (4) has a class rate of one percent, (v) the market value of
property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi)
that portion of the market value of property in clause (9) qualifying for class 4c property
has a class rate of 1.25 percent.

(e) Class 4d property is qualifying low-income rental housing certified to the assessor
by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion
of the units in the building qualify as low-income rental housing units as certified under
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.

Class 4d property has a class rate of 0.75 percent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009, taxes
payable in 2010, and thereafter. For assessment year 2009 only, the January 15 application
date under paragraph (d), clause (1), shall be extended to July 1, 2009, for property
qualifying for the 2009 assessment under paragraph (d), clause (1), item (iii).
new text end

Sec. 15.

Minnesota Statutes 2008, section 273.13, subdivision 34, is amended to read:


Subd. 34.

Homestead of disabled veteran.

(a) All or a portion of the market value
of property owned by a veteran or by the veteran and the veteran's spouse qualifying
for homestead classification under subdivision 22 or 23 is excluded in determining the
property's taxable market value if it serves as the homestead of a military veteran, as
defined in section 197.447, who has a service-connected disability of 70 percent or more.
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, and must be certified by the
United States Veterans Administration as having a service-connected disability.

(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
excluded, except as provided in clause (2); and

(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.

(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
spouse holds the legal or beneficial title to the homestead and permanently resides there,
the exclusion shall carry over to the benefit of the veteran's spouse for deleted text beginonedeleted text endnew text begin fivenew text end additional
deleted text begin assessment year ordeleted text endnew text begin years ornew text end until such time as the spouse sells, transfers, or otherwise
disposes of the propertynew text begin or remarriesnew text end, whichever comes first.

(d) 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.

(e) A property qualifying for a valuation exclusion under this subdivision is not
eligible for the credit under section 273.1384, subdivision 1, or classification under
subdivision 22, paragraph (b).

(f) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by July 1 of each assessment year, except that an annual reapplication
is not required once a property has been accepted for a valuation exclusion under paragraph
(b), clause (2), and the property continues to qualify until there is a change in ownership.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 16.

Minnesota Statutes 2008, 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) homestead and agricultural credits as provided in section 273.1384;

(8) taconite homestead credit as provided in section 273.135; new text beginand
new text end

(9) supplemental homestead credit as provided in section 273.1391deleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (10) the bovine tuberculosis zone credit, as provided in section 273.113.
deleted 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 for property taxes payable in 2010
and thereafter.
new text end

Sec. 17.

Minnesota Statutes 2008, section 275.025, subdivision 1, is amended to read:


Subdivision 1.

Levy amount.

new text begin(a) new text endThe state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy base amount is $592,000,000 for taxes payable in
2002. For taxes payable in subsequent years, the levy base amount is increased each year
by multiplying the levy base amount for the prior year by the sum of one plus the rate of
increase, if any, in the implicit price deflator for government consumption expenditures
and gross investment for state and local governments prepared by the Bureau of Economic
Analysts of the United States Department of Commerce for the 12-month period ending
March 31 of the year prior to the year the taxes are payable. 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.

new text begin (b) new text endThe 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 on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 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 (c) In setting the rate, for taxes payable in 2010 only, the commissioner shall exclude
the tax capacity of property described in section 473.625 from the tax base. The amount
levied against property described in section 473.625 for taxes payable in 2010 shall be
permanently added to the 2010 base amount before inflating to the 2011 levy amount
under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for taxes payable in 2010.
new text end

Sec. 18.

Minnesota Statutes 2008, 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, except for electric generation
attached machinery under class 3 deleted text beginand property described in section 473.625deleted text end. 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for taxes payable in 2010.
new text end

Sec. 19.

Minnesota Statutes 2008, 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. new text beginThe tax statement must not state or imply
that property tax credits are paid by the state of Minnesota.
new text endThe 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 taxable market value after reductions under section 273.11,
subdivisions 1a and 16
;

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

(4) for homestead residential and agricultural properties, the credits under section
273.1384;

(5) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 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

(6) 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 for taxes payable in 2011 and
thereafter.
new text end

Sec. 20.

Minnesota Statutes 2008, section 279.10, is amended to read:


279.10 PUBLICATION CORRECTED.

Immediately after preparing forms for printing such notice and list, and at least five
days before the first day for the publication thereof, every deleted text beginsuchdeleted text end publisher shall furnish
proof of the proposed publication to the county auditor for correction. When deleted text beginsuchdeleted text endnew text begin thenew text end copy
has been corrected, the auditor shall return deleted text beginthe samedeleted text endnew text begin itnew text end to the printer, who shall publish it
as corrected. On the first day on which deleted text beginsuchdeleted text endnew text begin thenew text end notice and list are published, the publisher
shall mail a copy of the newspaper containing deleted text beginthe samedeleted text endnew text begin the notice and listnew text end to the auditor. If
during the publication of the notice and list, or within ten days after the last publication
thereof, the auditor deleted text beginshall discoverdeleted text endnew text begin discoversnew text end that deleted text beginsuchdeleted text endnew text begin thenew text end publication deleted text beginis invaliddeleted text endnew text begin contains an
error
new text end, the auditor shall deleted text beginforthwithdeleted text end direct the publisher to deleted text beginrepublish the same as correcteddeleted text endnew text begin
publish the correct information
new text end for an additional period of two weeks. new text beginThe auditor does
not have to direct the publisher to republish the entire list.
new text endThe publisher, if not neglectful,
deleted text begin shall bedeleted text endnew text begin isnew text end entitled to deleted text beginthe samedeleted text end compensation as allowed by law for deleted text beginthe originaldeleted text end publicationnew text begin
of the corrected information
new text end, but shall receive no further compensation deleted text begintherefordeleted text end if deleted text beginsuchdeleted text endnew text begin the
new text end republication is necessary by reason of the neglect of the publisher.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2008, section 282.08, is amended to read:


282.08 APPORTIONMENT OF PROCEEDS TO TAXING DISTRICTS.

The net proceeds from the sale or rental of any parcel of forfeited land, or from the
sale of products from the forfeited land, must be apportioned by the county auditor to the
taxing districts interested in the land, as follows:

(1) the portion required to pay any amounts included in the appraised value
under section 282.01, subdivision 3, as representing increased value due to any public
improvement made after forfeiture of the parcel to the state, but not exceeding the
amount certified by the appropriate governmental authority must be apportioned to the
governmental subdivision entitled to it;

(2) the portion required to pay any amount included in the appraised value under
section 282.019, subdivision 5, representing increased value due to response actions
taken after forfeiture of the parcel to the state, but not exceeding the amount of expenses
certified by the Pollution Control Agency or the commissioner of agriculture, must be
apportioned to the agency or the commissioner of agriculture and deposited in the fund
from which the expenses were paid;

(3) the portion of the remainder required to discharge any special assessment
chargeable against the parcel for drainage or other purpose whether due or deferred at the
time of forfeiture, must be apportioned to the governmental subdivision entitled to it; and

(4) any balance must be apportioned as follows:

(i)new text begin(A) Except as provided in subitem (B), new text endthe county board may annually by
resolution set aside no more than 30 percent of the receipts remaining to be used for forest
development on tax-forfeited land and dedicated memorial forests, to be expended under
the supervision of the county board. It must be expended only on projects improving the
health and management of the forest resource.

new text begin (B) The county board is authorized to use some of the money set aside under subitem
(A) to replace all or a portion of the amount of aid or credit reimbursement that the county
was to receive under sections 273.1384 and 477A.0124, but did not receive due to aid cuts
or unallotment from the state. Within six months of the actual aid or credit reimbursement
loss, the county board may adopt a resolution transferring money from this fund to the
county's general fund, not to exceed the amount of aid or credit reimbursement loss to the
county. This subitem expires January 1, 2012.
new text end

(ii) The county board may annually by resolution set aside no more than 20 percent
of the receipts remaining to be used for the acquisition and maintenance of county parks
or recreational areas as defined in sections 398.31 to 398.36, to be expended under the
supervision of the county board.

(iii) Any balance remaining must be apportioned as follows: county, 40 percent;
town or city, 20 percent; and school district, 40 percent, provided, however, that in
unorganized territory that portion which would have accrued to the township must be
administered by the county board of commissioners.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2008, section 290B.03, subdivision 1, is amended to read:


Subdivision 1.

Program qualifications.

The qualifications for the senior citizens'
property tax deferral program are as follows:

(1) the property must be owned and occupied as a homestead by a person 65 years
of age or older. In the case of a married couple, deleted text beginbothdeleted text endnew text begin at least onenew text end of the spouses must
be at least 65 years old at the time the first property tax deferral is granted, regardless
of whether the property is titled in the name of one spouse or both spouses, or titled in
another way that permits the property to have homestead statusnew text begin, and the other spouse
must be at least 62 years of age
new text end;

(2) the total household income of the qualifying homeowners, as defined in section
290A.03, subdivision 5, for the calendar year preceding the year of the initial application
may not exceed deleted text begin$60,000deleted text endnew text begin $75,000new text end;

(3) the homestead must have been owned and occupied as the homestead of at
least one of the qualifying homeowners for at least deleted text begin15deleted text endnew text begin tennew text end years prior to the year the
initial application is filed;

(4) there are no state or federal tax liens or judgment liens on the homesteaded
property;

(5) there are no mortgages or other liens on the property that secure future advances,
except for those subject to credit limits that result in compliance with clause (6); and

(6) the total unpaid balances of debts secured by mortgages and other liens on the
property, including unpaid and delinquent special assessments and interest and any
delinquent property taxes, penalties, and interest, but not including property taxes payable
during the year, does not exceed 75 percent of the assessor's estimated market value for
the year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, and thereafter.
new text end

Sec. 23.

Minnesota Statutes 2008, section 290B.04, subdivision 3, is amended to read:


Subd. 3.

Excess-income certification by taxpayer.

A taxpayer whose initial
application has been approved under subdivision 2 shall notify the commissioner of
revenue in writing by July 1 if the taxpayer's household income for the preceding calendar
year exceeded deleted text begin$60,000deleted text endnew text begin $75,000new text end. The certification must state the homeowner's total
household income for the previous calendar year. No property taxes may be deferred
under this chapter in any year following the year in which a program participant filed
or should have filed an excess-income certification under this subdivision, unless the
participant has filed a resumption of eligibility certification as described in subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, and thereafter.
new text end

Sec. 24.

Minnesota Statutes 2008, section 290B.04, subdivision 4, is amended to read:


Subd. 4.

Resumption of eligibility certification by taxpayer.

A taxpayer who has
previously filed an excess-income certification under subdivision 3 may resume program
participation if the taxpayer's household income for a subsequent year is deleted text begin$60,000deleted text endnew text begin $75,000new text end
or less. If the taxpayer chooses to resume program participation, the taxpayer must notify
the commissioner of revenue in writing by July 1 of the year following a calendar year in
which the taxpayer's household income is deleted text begin$60,000deleted text endnew text begin $75,000new text end or less. The certification must
state the taxpayer's total household income for the previous calendar year. Once a taxpayer
resumes participation in the program under this subdivision, participation will continue
until the taxpayer files a subsequent excess-income certification under subdivision 3 or
until participation is terminated under section 290B.08, subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, and thereafter.
new text end

Sec. 25.

Minnesota Statutes 2008, section 290B.05, subdivision 1, is amended to read:


Subdivision 1.

Determination by commissioner.

The commissioner shall
determine each qualifying homeowner's "annual maximum property tax amount"
following approval of the homeowner's initial application and following the receipt of a
resumption of eligibility certification. The "annual maximum property tax amount" equals
three percent of the homeowner's total household income for the year preceding either the
initial application or the resumption of eligibility certification, whichever is applicable.
Following approval of the initial application, the commissioner shall determine the
qualifying homeowner's "maximum allowable deferral." No tax may be deferred relative
to the appropriate assessment year for any homeowner whose total household income
for the previous year exceeds deleted text begin$60,000deleted text endnew text begin $75,000new text end. No tax shall be deferred in any year in
which the homeowner does not meet the program qualifications in section 290B.03. The
maximum allowable total deferral is equal to 75 percent of the assessor's estimated market
value for the year, less the balance of any mortgage loans and other amounts secured by
liens against the property at the time of application, including any unpaid and delinquent
special assessments and interest and any delinquent property taxes, penalties, and interest,
but not including property taxes payable during the year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, and thereafter.
new text end

Sec. 26.

Minnesota Statutes 2008, section 428A.101, is amended to read:


428A.101 DEADLINE FOR SPECIAL SERVICE DISTRICT UNDER
GENERAL LAW.

The establishment of a new special service district after June 30, deleted text begin2009deleted text endnew text begin 2013new text end, requires
enactment of a special law authorizing the establishment.

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2008, section 428A.21, is amended to read:


428A.21 DEADLINE FOR HOUSING IMPROVEMENT DISTRICTS UNDER
GENERAL LAW.

The establishment of a new housing improvement area after June 30, deleted text begin2009deleted text endnew text begin 2012new text end,
requires enactment of a special law authorizing the establishment of the area.

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2008, section 429.011, subdivision 2a, is amended to read:


Subd. 2a.

Municipality; certain counties.

"Municipality" also includesnew text begin the
following:
new text end

new text begin (1)new text end a county in the case of construction, reconstruction, or improvement of a county
state-aid highway deleted text beginordeleted text endnew text begin;
new text end

new text begin (2) anew text end county highway as defined in section 160.02 including curbs and gutters and
storm sewers;

new text begin (3) new text enda county exercising its powers and duties under section 444.075, subdivision
1
; deleted text beginand
deleted text end

new text begin (4)new text end a county for expenses not paid for under section 403.113, subdivision 3,
paragraph (b), clause (3)new text begin;
new text end

new text begin (5) a county in the case of the abatement of nuisances; and
new text end

new text begin (6) a county in the case of the correction of environmental, wetland, or land use
violations
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. 29.

Minnesota Statutes 2008, 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.

new text begin (21) To correct environmental, wetland, or land use violations.
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. 30.

new text begin [435.39] MUNICIPAL STREET IMPROVEMENT DISTRICTS.
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 them.
new text end

new text begin (b) "Class of property" mean classes 1 through 5 under section 273.13, but without
regard to subclasses, and tax exempt property may be treated as an additional class, if the
city elects to subject tax exempt property to the fee.
new text end

new text begin (c) "Governing body" means the city council of a municipality.
new text end

new text begin (d) "Improvements" means construction, reconstruction, and facility upgrades
involving: right-of-way acquisition; paving; curbs and gutters; bridges and culverts and
their repair; milling; overlaying; drainage and storm sewers; excavation; base work;
subgrade corrections; street lighting; traffic signals; signage; sidewalks; pavement
markings; boulevard and easement restoration; impact mitigation; connection and
reconnection of utilities; turn lanes; medians; street and alley returns; retaining walls;
fences; lane additions; and fixed transit infrastructure, trails, or pathways. "Fixed transit
infrastructure" does not include commuter rail rolling stock, light rail vehicles, or
transit way buses; capital costs for park-and-ride facilities; feasibility studies, planning,
alternative analyses, environmental studies, engineering, or construction of transit ways;
or operating assistance for transit ways.
new text end

new text begin (e) "Maintenance" means striping, seal coating, crack sealing, pavement repair,
sidewalk maintenance, signal maintenance, street light maintenance, and signage.
new text end

new text begin (f) "Municipal street" means a street, alley, or public way in which the municipality
is the road authority with powers conferred by section 429.021.
new text end

new text begin (g) "Municipality" means a home rule charter or statutory city.
new text end

new text begin (g) "Street improvement district" means a geographic area designated by a
municipality within which street improvements and maintenance may be undertaken and
financed according to this section.
new text end

new text begin Subd. 2. new text end

new text begin Authorization. new text end

new text begin A municipality may establish by ordinance municipal
street improvement districts and may defray all or part of the total costs of municipal street
improvements and maintenance by apportioning street improvement fees to all of the
parcels located in the district. In establishing the boundaries of the district, the city may
not exclude from the district or imposition of the fee any class or parcel of property that is
served by the municipal street on an equal basis with other classes or parcels of property
included in the district, except this limitation does not apply to tax exempt property.
new text end

new text begin Subd. 3. new text end

new text begin Uniformity. new text end

new text begin (a) The total costs of municipal street improvements and
maintenance must be apportioned to all parcels or tracts of land located in the established
street improvement district on a uniform basis within each class of property.
new text end

new text begin (b) The method of apportioning costs must not apportion costs to any class of
property at a ratio of more than 2 to 1, relative to the rate for the property in any other
class. The limit under this paragraph does not apply to any fees that the municipality
elects to impose on tax exempt property.
new text end

new text begin Subd. 4. new text end

new text begin Adoption of plan. new text end

new text begin (a) Before establishing a municipal street improvement
district or authorizing a street improvement fee, a municipality must propose and adopt
a street improvement plan that:
new text end

new text begin (1) identifies and estimates the costs of proposed improvements and maintenance
for the life of the district;
new text end

new text begin (2) identifies the location of the municipal street improvement district, which must
be limited to parcels that are served by the improvements to be constructed or maintained
by the street improvement district; and
new text end

new text begin (3) specifies the manner in which costs will be apportioned among the parcels in
the district under subdivision 3.
new text end

new text begin (b) Notice of a public hearing on the proposed plan must be given by mail to all
affected landowners at least ten days before the hearing and posted for at least ten days
before the hearing. The notice must include a description of the manner in which the fees
would be imposed and illustrative examples of the amount of fees for average parcels for
each class of property in the district. At the public hearing, the governing body must
present the plan and all affected landowners in attendance must have the opportunity to
comment before the governing body considers adoption of the plan.
new text end

new text begin Subd. 5. new text end

new text begin Use of fees. new text end

new text begin Revenues collected from property in a district from the
fee authorized in this section must be placed in a separate account and be used only
for projects located within that same district and identified in the municipal street
improvement district plan.
new text end

new text begin Subd. 6. new text end

new text begin Collection; up to ten years. new text end

new text begin (a) The ordinance adopted under this section
must provide for the billing and payment of the fee on a monthly, quarterly, or other basis
as directed by the governing body. The governing body may collect municipal street
improvement fees within a street improvement district for up to a maximum of ten years,
which is the maximum duration of the district.
new text end

new text begin (b) Fees that, as of October 15 of each calendar year, have remained unpaid for at
least 30 days may be certified to the county auditor for collection as property taxes payable
in the following calendar year on the affected property.
new text end

new text begin Subd. 7. new text end

new text begin Notice; hearings. new text end

new text begin (a) A municipality may impose a municipal street
improvement fee provided in this section by ordinance. The ordinance must not be voted
on or adopted until after a public hearing has been held on the question. The effective date
of an ordinance must be at least 45 days after it is adopted.
new text end

new text begin (b) Within five days after adoption of the ordinance, a summary of the ordinance
must be mailed to the owner of each parcel included in the street improvement district.
The mailing must include:
new text end

new text begin (1) a notice that owners subject to a fee under the ordinance have a right to petition
for a referendum vote on the ordinance by filing the required number of objections with
the city clerk before the effective date of the ordinance and that a copy of the ordinance is
on file with the city clerk for public inspection; and
new text end

new text begin (2) the estimated amount of the fee that would be imposed on the owner's parcel in
the first year the fee is imposed, and an estimate of the maximum annual amount of the fee
that may be imposed on the owner's parcel during the duration of the project.
new text end

new text begin Subd. 8. new text end

new text begin Reverse referendum. new text end

new text begin (a) If owners of 35 percent or more of the net tax
capacity in the district subject to the fees under the ordinance file an objection to the
ordinance with the city clerk before the effective date of the ordinance, the ordinance does
not become effective unless it is approved as provided in paragraph (b).
new text end

new text begin (b) If an ordinance does not become effective as a result of the filing of objections
under paragraph (a), the city may submit the ordinance to the property owners in the
street improvement district that would be subject to the fee imposed by the ordinance for
approval. The election must be conducted by mail. Notice of the election and the mail
procedure must be given at least six weeks prior to the election. No earlier than 20 days or
later than 14 days before the date set for the election, the city clerk shall mail ballots by
nonforwardable mail to the owners, as recorded on the property tax records, of each parcel
of property subject to the fee under the ordinance. Each parcel of property is entitled to
one vote. Ballots may be returned to the city clerk by mail or in person by the date set for
the election. If a majority of the owners voting in the election approve the ordinance, it
becomes effective 30 days after the date of the election.
new text end

new text begin Subd. 9. new text end

new text begin Not exclusive means of financing improvements. new text end

new text begin The use of the
municipal street improvement fee by a municipality does not restrict the municipality from
imposing other measures to pay the costs of local street improvements or maintenance,
except that a municipality must not impose special assessments for projects funded with
street improvement fees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 31.

Minnesota Statutes 2008, section 473H.04, is amended by adding a
subdivision to read:


new text begin Subd. 2a. new text end

new text begin Termination of eligibility. new text end

new text begin (a) A parcel of property enrolled under this
section whose owner is subject to a final enforcement action for a violation of chapter 18B,
18C, 103E, 103F, 103G, or 103H, or any rule adopted under these chapters including but
not limited to the agricultural shoreland use standards in Minnesota Rules, chapter 6120,
occurring on the parcel, shall be removed from the program.
new text end

new text begin (b) For the purposes of this subdivision, "final enforcement action" means any
administrative, civil, or criminal penalty other than an initial verbal or written warning.
An enforcement action is not final until any time period for corrective action has expired,
and until the completion or expiration of any applicable review or appeal procedure or
period provided by law.
new text end

new text begin (c) When a final enforcement action is taken based on a violation occurring on a
parcel enrolled under this chapter, the law enforcement officer or other person enforcing
the law or rule must notify the county assessor. The county assessor must then notify
the property owner that the parcel is being removed from the program. Any parcel for
which the assessor has been notified prior to March 1 of any year shall be removed from
the program for taxes payable in the following year. The assessor shall calculate (i) the
amount of any credit received under section 473H.05 for the current year, and (ii) the
difference between the actual tax on the parcel for the current year and the tax that would
apply if the value was not restricted under this section, and multiply the result by the
number of years that the parcel has been under its current ownership or five, whichever is
less. The resulting amount plus any special assessments that have been deferred under this
section shall be extended against the parcel on the tax list for the current year, provided
that no interest or penalties shall be levied on the additional taxes if timely paid.
new text end

new text begin (d) Termination of eligibility under this subdivision shall not affect the covenant
required under section 473H.05. A parcel of property terminated under this subdivision
may not be reenrolled for a period of three years, unless it has been sold or transferred
so that it is no longer under the same ownership, in full or in part, as when the parcel
was terminated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2011 and
thereafter.
new text end

Sec. 32.

Minnesota Statutes 2008, section 473H.05, subdivision 1, is amended to read:


Subdivision 1.

Before deleted text beginMarchdeleted text endnew text begin Junenew text end 1 for next year's taxes.

An owner or owners
of certified long-term agricultural land may apply to the authority with jurisdiction over
the land on forms provided by the commissioner of agriculture for the creation of an
agricultural preserve at any time. Land for which application is received prior to deleted text beginMarchdeleted text endnew text begin
June
new text end 1 of any year shall be assessed pursuant to section 473H.10 for taxes payable in the
following year. Land for which application is received on or after deleted text beginMarchdeleted text endnew text begin Junenew text end 1 of any
year shall be assessed pursuant to section 473H.10 in the following year. The application
shall be executed and acknowledged in the manner required by law to execute and
acknowledge a deed and shall contain at least the following information and such other
information as the commissioner deems necessary:

(a) Legal description of the area proposed to be designated and parcel identification
numbers if so designated by the county auditor and the certificate of title number if the
land is registered;

(b) Name and address of owner;

(c) An affidavit by the authority evidencing that the land is certified long-term
agricultural land at the date of application;

(d) A statement by the owner covenanting that the land shall be kept in agricultural
use, and shall be used in accordance with the provisions of sections 473H.02 to 473H.17
which exist on the date of application and providing that the restrictive covenant shall be
binding on the owner or the owner's successor or assignee, and shall run with the land.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except that in 2009 the application date in this section shall be extended to August 1.
new text end

Sec. 33.

Laws 2001, First Special Session chapter 5, article 3, section 8, the effective
date, as amended by Laws 2005, chapter 151, article 3, section 19, and Laws 2006, chapter
259, article 4, section 20, is amended to read:


EFFECTIVE DATE. This section is effective for taxes levied in 2002, payable in
2003, through taxes levied in deleted text begin2011deleted text endnew text begin 2014new text end, payable in deleted text begin2012deleted text endnew text begin 2015new text end. new text beginThis limitation applies
only to the establishment of a new emergency special service district.
new text end

Sec. 34.

Laws 2008, chapter 366, article 6, section 9, the effective date, is amended to
read:


EFFECTIVE DATE.

This section is effective for taxes payable in 2010 and
thereafternew text begin, on land platted after May 18, 2008new text end.

Sec. 35.

Laws 2008, chapter 366, article 6, section 10, the effective date, is amended to
read:


EFFECTIVE DATE.

This section is effective for taxes payable in 2010 and
thereafternew text begin, on land platted after May 18, 2008new text end.

Sec. 36. new text beginPURPOSE; COMMISSIONER OF REVENUE GUIDANCE.
new text end

new text begin The purpose of section 2 is not to contract or expand the definition of "institutions
of purely public charity" but to provide clear standards that can be applied uniformly to
determine eligibility for exemption from property taxation. To carry out this purpose and
to promote uniformity in application of the provisions of section 2, the commissioner of
revenue shall prepare a bulletin providing guidance to assessors as to the commissioner's
interpretation of section 2. The bulletin may include a discussion of court decisions that
provide background to and context for the provisions in section 2, as the commissioner
deems appropriate. This guidance must include examples of facts or circumstances that
satisfy the requirement of "a reasonable justification for failing to meet the factors in clause
(2), (3), or (5)" under section 2, paragraph (a). Assessors shall give due consideration to
the bulletin in assessing property requesting an exemption as an institution of purely public
charity. The commissioner shall distribute the bulletin to all assessors by July 1, 2010.
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. 37. new text beginREPORT BY ADMINISTRATIVE AUDITOR.
new text end

new text begin The administrative auditor selected pursuant to Minnesota Statutes, section 473F.03,
with the cooperation of the county auditors in the area defined by Minnesota Statutes,
section 473F.02, subdivision 2, shall study the feasibility of basing fiscal disparities
calculations on current year tax rates rather than previous year tax rates, and report
the results of the study to the chairs and ranking minority members of the house of
representatives and senate tax committees by February 1, 2011. The report should include
any recommendations for amendments to Minnesota Statutes, chapter 473F, that would be
necessary to implement the change.
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. 38. new text beginMINNEAPOLIS CONVENTION CENTER; LEASE; PROPERTY TAX
EXEMPTION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 272.01, subdivision 2, or 273.19, real
or personal property subject to a lease or use agreement between the city of Minneapolis
and a private entity for purposes of providing food and beverage services within the
Minneapolis Convention Center is exempt from property taxation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2009 and
thereafter, for taxes payable in 2010 and thereafter.
new text end

Sec. 39. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 273.113, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2010
and thereafter.
new text end

ARTICLE 7

AIDS AND CREDITS

Section 1.

Minnesota Statutes 2008, section 273.1384, subdivision 1, is amended to
read:


Subdivision 1.

Residential homestead market value credit.

Each county auditor
shall determine a homestead credit for each class 1a, 1b, and 2a homestead property
within the county equal to 0.4 percent of the first deleted text begin$76,000deleted text endnew text begin $75,000new text end of market value of
the property minus deleted text begin.09deleted text endnew text begin 0.1new text end percent of the market value in excess of deleted text begin$76,000deleted text endnew text begin $75,000new text end.
The credit amount may not be less than zero. In the case of an agricultural or resort
homestead, only the market value of the house, garage, and immediately surrounding one
acre of land is eligible in determining the property's homestead credit. In the case of a
property that is classified as part homestead and part nonhomestead, (i) the credit shall
apply only to the homestead portion of the property, but (ii) if a portion of a property is
classified as nonhomestead solely because not all the owners occupy the property, not all
the owners have qualifying relatives occupying the property, or solely because not all the
spouses of owners occupy the property, the credit amount shall be initially computed as
if that nonhomestead portion were also in the homestead class and then prorated to the
owner-occupant's percentage of ownership. For the purpose of this section, when an
owner-occupant's spouse does not occupy the property, the percentage of ownership for
the owner-occupant spouse is one-half of the couple's ownership percentage.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2008, section 273.1384, subdivision 4, is amended to read:


Subd. 4.

Payment.

(a) The commissioner of revenue shall 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 on the abstracts for that taxes payable year. The reimbursements
related to tax increments shall be issued in one installment each year on December 26.

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

new text begin (c) The market value credit reimbursements payable in 2011 and 2012 for each city
under this section are reduced by the dollar amount of the 2010 reduction in market value
credit reimbursements under section 477A.013, subdivision 11. The payable market value
credit reimbursement for a city is not reduced less than zero under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for credits payable in calendar year
2011 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2008, section 290A.04, subdivision 2, is amended to read:


Subd. 2.

Homeowners.

A claimant whose property taxes payable are in excess
of the percentage of the household income stated below shall pay an amount equal to
the percent of income shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of property taxes payable.
The state refund equals the amount of property taxes payable that remain, up to the state
refund amount shown below.

Household Income
Percent of Income
Percent Paid by
Claimant
Maximum State
Refund
$0 to 1,189
1.0 percent
15 percent
$
deleted text begin 1,850
deleted text end new text begin 2,040
new text end
1,190 to 2,379
1.1 percent
15 percent
$
deleted text begin 1,850
deleted text end new text begin 2,040
new text end
2,380 to 3,589
1.2 percent
15 percent
$
deleted text begin 1,800
deleted text end new text begin 1,980
new text end
3,590 to 4,789
1.3 percent
20 percent
$
deleted text begin 1,800
deleted text end new text begin 1,980
new text end
4,790 to 5,979
1.4 percent
20 percent
$
deleted text begin 1,730
deleted text end new text begin 1,900
new text end
5,980 to 8,369
1.5 percent
20 percent
$
deleted text begin 1,730
deleted text end new text begin 1,900
new text end
8,370 to 9,559
1.6 percent
25 percent
$
deleted text begin 1,670
deleted text end new text begin 1,840
new text end
9,560 to 10,759
1.7 percent
25 percent
$
deleted text begin 1,670
deleted text end new text begin 1,840
new text end
10,760 to 11,949
1.8 percent
25 percent
$
deleted text begin 1,610
deleted text end new text begin 1,770
new text end
11,950 to 13,139
1.9 percent
30 percent
$
deleted text begin 1,610
deleted text end new text begin 1,770
new text end
13,140 to 14,349
2.0 percent
30 percent
$
deleted text begin 1,540
deleted text end new text begin 1,690
new text end
14,350 to 16,739
deleted text begin2.1deleted text endnew text begin2.0new text end percent
30 percent
$
deleted text begin 1,540
deleted text end new text begin 1,690
new text end
deleted text begin 16,740 to 17,929
deleted text end
deleted text begin 2.2 percent
deleted text end
deleted text begin 35 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,480
deleted text end
deleted text begin 17,930 to 19,119
deleted text end new text begin 16,740 to 19,119
new text end
deleted text begin2.3deleted text endnew text begin2.0new text end percent
35 percent
$
deleted text begin 1,480
deleted text end new text begin 1,630
new text end
19,120 to 20,319
deleted text begin2.4deleted text endnew text begin2.1new text end percent
35 percent
$
deleted text begin 1,420
deleted text end new text begin 1,560
new text end
20,320 to 25,099
deleted text begin2.5deleted text endnew text begin2.2new text end percent
40 percent
$
deleted text begin 1,420
deleted text end new text begin 1,560
new text end
25,100 to 28,679
deleted text begin2.6deleted text endnew text begin2.3new text end percent
40 percent
$
deleted text begin 1,360
deleted text end new text begin 1,500
new text end
28,680 to 35,849
deleted text begin2.7deleted text endnew text begin2.5new text end percent
40 percent
$
deleted text begin 1,360
deleted text end new text begin 1,500
new text end
35,850 to 41,819
deleted text begin2.8deleted text endnew text begin2.6new text end percent
45 percent
$
deleted text begin 1,240
deleted text end new text begin 1,360
new text end
41,820 to 47,799
deleted text begin3.0deleted text endnew text begin2.8new text end percent
45 percent
$
deleted text begin 1,240
deleted text end new text begin 1,360
new text end
47,800 to 53,779
deleted text begin3.2deleted text endnew text begin3.0new text end percent
45 percent
$
deleted text begin 1,110
deleted text end new text begin 1,220
new text end
53,780 to 59,749
3.5 percent
50 percent
$
deleted text begin 990 deleted text end new text begin 1,090
new text end
59,750 to 65,729
3.5 percent
50 percent
$
deleted text begin 870 deleted text end new text begin 960
new text end
65,730 to 69,319
3.5 percent
50 percent
$
deleted text begin 740 deleted text end new text begin 810
new text end
69,320 to 71,719
3.5 percent
50 percent
$
deleted text begin 610 deleted text end new text begin 670
new text end
71,720 to 74,619
3.5 percent
50 percent
$
deleted text begin 500 deleted text end new text begin 550
new text end
74,620 to 77,519
3.5 percent
50 percent
$
deleted text begin 370 deleted text end new text begin 410
new text end

The payment made to a claimant shall be the amount of the state refund calculated
under this subdivision. No payment is allowed if the claimant's household income is
$77,520 or more.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with refunds based on
property taxes payable in 2010.
new text end

Sec. 4.

Minnesota Statutes 2008, section 477A.011, subdivision 36, is amended to read:


Subd. 36.

City aid base.

(a) Except as otherwise provided in this subdivision,
"city aid base" is zero.

(b) The city aid base for any city with a population less than 500 is increased by
$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount
of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
increased by $40,000 for aids payable in calendar year 1995 only, provided that:

(i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;

(ii) the city portion of the tax capacity rate exceeds 100 percent; and

(iii) its city aid base is less than $60 per capita.

(c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that:

(i) the city has a population in 1994 of 2,500 or more;

(ii) the city is located in a county, outside of the metropolitan area, which contains a
city of the first class;

(iii) the city's net tax capacity used in calculating its 1996 aid under section
477A.013 is less than $400 per capita; and

(iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of
property located in the city is classified as railroad property.

(d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that:

(i) the city was incorporated as a statutory city after December 1, 1993;

(ii) its city aid base does not exceed $5,600; and

(iii) the city had a population in 1996 of 5,000 or more.

(e) The city aid base for a city is increased by $150,000 for aids payable in 2000 and
thereafter, and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9
, paragraph (c), is also increased by $150,000 in calendar year 2000 only,
provided that:

(1) the city has a population that is greater than 1,000 and less than 2,500;

(2) its commercial and industrial percentage for aids payable in 1999 is greater
than 45 percent; and

(3) the total market value of all commercial and industrial property in the city
for assessment year 1999 is at least 15 percent less than the total market value of all
commercial and industrial property in the city for assessment year 1998.

(f) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that:

(1) the city had a population in 1997 of 2,500 or more;

(2) the net tax capacity of the city used in calculating its 1999 aid under section
477A.013 is less than $650 per capita;

(3) the pre-1940 housing percentage of the city used in calculating 1999 aid under
section 477A.013 is greater than 12 percent;

(4) the 1999 local government aid of the city under section 477A.013 is less than
20 percent of the amount that the formula aid of the city would have been if the need
increase percentage was 100 percent; and

(5) the city aid base of the city used in calculating aid under section 477A.013
is less than $7 per capita.

(g) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that:

(1) the city has a population in 1997 of 2,000 or more;

(2) the net tax capacity of the city used in calculating its 1999 aid under section
477A.013 is less than $455 per capita;

(3) the net levy of the city used in calculating 1999 aid under section 477A.013 is
greater than $195 per capita; and

(4) the 1999 local government aid of the city under section 477A.013 is less than
38 percent of the amount that the formula aid of the city would have been if the need
increase percentage was 100 percent.

(h) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that:

(1) the city has a population in 1998 that is greater than 200 but less than 500;

(2) the city's revenue need used in calculating aids payable in 2000 was greater
than $200 per capita;

(3) the city net tax capacity for the city used in calculating aids available in 2000
was equal to or less than $200 per capita;

(4) the city aid base of the city used in calculating aid under section 477A.013
is less than $65 per capita; and

(5) the city's formula aid for aids payable in 2000 was greater than zero.

(i) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that:

(1) the city had a population in 1998 that is greater than 200 but less than 500;

(2) the city's commercial industrial percentage used in calculating aids payable in
2000 was less than ten percent;

(3) more than 25 percent of the city's population was 60 years old or older according
to the 1990 census;

(4) the city aid base of the city used in calculating aid under section 477A.013
is less than $15 per capita; and

(5) the city's formula aid for aids payable in 2000 was greater than zero.

(j) The city aid base for a city is increased by $45,000 in 2001 and thereafter and
by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of
total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002
only, provided that:

(1) the net tax capacity of the city used in calculating its 2000 aid under section
477A.013 is less than $810 per capita;

(2) the population of the city declined more than two percent between 1988 and 1998;

(3) the net levy of the city used in calculating 2000 aid under section 477A.013 is
greater than $240 per capita; and

(4) the city received less than $36 per capita in aid under section 477A.013,
subdivision 9
, for aids payable in 2000.

(k) The city aid base for a city with a population of 10,000 or more which is located
outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to
the lesser of:

(1)(i) the total population of the city, as determined by the United States Bureau of
the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or

(2) $2,500,000.

(l) The city aid base is increased by $50,000 in 2002 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that:

(1) the city is located in the seven-county metropolitan area;

(2) its population in 2000 is between 10,000 and 20,000; and

(3) its commercial industrial percentage, as calculated for city aid payable in 2001,
was greater than 25 percent.

(m) The city aid base for a city is increased by $150,000 in calendar years 2002 to
2011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is
also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year
2009 only, provided that:

(1) the city had a population of at least 3,000 but no more than 4,000 in 1999;

(2) its home county is located within the seven-county metropolitan area;

(3) its pre-1940 housing percentage is less than 15 percent; and

(4) its city net tax capacity per capita for taxes payable in 2000 is less than $900
per capita.

(n) The city aid base for a city is increased by $200,000 beginning in calendar
year 2003 and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9
, paragraph (c), is also increased by $200,000 in calendar year 2003 only,
provided that the city qualified for an increase in homestead and agricultural credit aid
under Laws 1995, chapter 264, article 8, section 18.

(o) The city aid base for a city is increased by $200,000 in 2004 only and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, is
also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear
dry cask storage facility.

(p) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
by $10,000 in calendar year 2004 only, if the city was included in a federal major disaster
designation issued on April 1, 1998, and its pre-1940 housing stock was decreased by
more than 40 percent between 1990 and 2000.

(q) The city aid base for a city is increased by $30,000 in 2009 and thereafter and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
by $25,000 in calendar year 2006 only if the city had a population in 2003 of at least 1,000
and has a state park for which the city provides rescue services and which comprised at
least 14 percent of the total geographic area included within the city boundaries in 2000.

(r) The city aid base for a city is increased by $80,000 in 2009 and thereafter and
the minimum and maximum amount of total aid it may receive under section 477A.013,
subdivision 9, is also increased by $80,000 in calendar year 2009 only, if:

(1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed
to be placed in trust status as tax-exempt Indian land;

(2) the placement of the land is being challenged administratively or in court; and

(3) due to the challenge, the land proposed to be placed in trust is still on the tax
rolls as of May 1, 2006.

(s) The city aid base for a city is increased by $100,000 in 2007 and thereafter and
the minimum and maximum total amount of aid it may receive under this section is also
increased in calendar year 2007 only, provided that:

(1) the city has a 2004 estimated population greater than 200 but less than 2,000;

(2) its city net tax capacity for aids payable in 2006 was less than $300 per capita;

(3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids
payable in 2006 was greater than 110 percent; and

(4) it is located in a county where at least 15,000 acres of land are classified as
tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property.

(t) The city aid base for a city is increased by $30,000 in 2009 only, and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than
3,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities
and one township in 2002.

(u) The city aid base for a city is increased by $100,000 in 2009 and thereafter, and
the maximum total aid it may receive under section 477A.013, subdivision 9, is also
increased by $100,000 in calendar year 2009 only, if the city had a city net tax capacity for
aids payable in 2007 of less than $150 per capita and the city experienced flooding on
March 14, 2007, that resulted in evacuation of at least 40 homes.

(v) The city aid base for a city is increased by $100,000 in 2009 to 2013, and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
by $100,000 in calendar year 2009 only, if the city:

(1) is located outside of the Minneapolis-St. Paul standard metropolitan statistical
area;

(2) has a 2005 population greater than 7,000 but less than 8,000; and

(3) has a 2005 net tax capacity per capita of less than $500.

(w) The city aid base is increased by $25,000 in calendar years 2009 to 2013 and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, is
increased by $25,000 in calendar year 2009 only, provided that:

(1) the city is located in the seven-county metropolitan area;

(2) its population in 2006 is less than 200; and

(3) the percentage of its housing stock built before 1940, according to the 2000
United States Census, is greater than 40 percent.

(x) The city aid base is increased by $90,000 in calendar year 2009 only and the
minimum and maximum total amount of aid it may receive under section 477A.013,
subdivision 9, is also increased by $90,000 in calendar year 2009 only, provided that the
city is located in the seven-county metropolitan area, has a 2006 population between 5,000
and 7,000 and has a 1997 population of over 7,000.

new text begin (y) The city aid base is increased by $100,000 in calendar years 2011 to 2015 and
the maximum amount of total aid a city may receive under section 477A.013, subdivision
9, is increased by $100,000 in 2011 only, provided that:
new text end

new text begin (1) the city is located in the metropolitan area;
new text end

new text begin (2) its 2006 population is less than 2,000; and
new text end

new text begin (3) its population has grown by at least 200 percent between 1996 and 2006.
new text end

new text begin (z) In calendar year 2010 only, the city aid base for a city is increased by $225,000 if
it was eligible for a $450,000 payment in calendar year 2008 under Minnesota Statutes
2006, section 477A.011, subdivision 36, paragraph (e), and the second half of the payment
under that paragraph in December 2008 was canceled due to the governor's unallotment.
The payment under this paragraph is not subject to any aid reductions under section
477A.0133 or any future unallotment of the city aid under section 16A.152.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year
2011 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2008, section 477A.013, subdivision 9, is amended to read:


Subd. 9.

City aid distribution.

(a) In calendar year 2009 deleted text beginand thereafterdeleted text end, each
city shall receive an aid distribution equal to the sum of (1) the city formula aid under
subdivision 8, and (2) its city aid base. new text beginIn calendar year 2010, each city receives an aid
distribution under this section, before the reductions under subdivision 11, equal to the
amount of aid under this section that it was certified to receive in 2009. In calendar year
2011 and thereafter, each city receives an aid distribution under this section equal to the
sum of (1) the city formula aid under subdivision 8, and (2) its city aid base.
new text end

(b) For aids payable in 2009 only, the total aid for any city shall not exceed the sum
of (1) 35 percent of the city's net levy for the year prior to the aid distribution, plus (2)
its total aid in the previous year.

(c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed
the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution
plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total
aid for any city with a population of 2,500 or more may not be less than its total aid under
this section in the previous year minus the lesser of $10 multiplied by its population, or ten
percent of its net levy in the year prior to the aid distribution.

(d) For aids payable in 2010 and thereafter, the total aid for a city with a population
less than 2,500 must not be less than the amount it was certified to receive in the
previous year minus the lesser of $10 multiplied by its population, or five percent of its
2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a
population less than 2,500 must not be less than what it received under this section in the
previous year unless its total aid in calendar year 2008 was aid under section 477A.011,
subdivision 36, paragraph (s), in which case its minimum aid is zero.

(e) A city's aid loss under this section may not exceed $300,000 in any year in
which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or
greater than the appropriation under that subdivision in the previous year, unless the
city has an adjustment in its city net tax capacity under the process described in section
469.174, subdivision 28.

(f) If a city's net tax capacity used in calculating aid under this section has decreased
in any year by more than 25 percent from its net tax capacity in the previous year due to
property becoming tax-exempt Indian land, the city's maximum allowed aid increase
under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the
year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
resulting from the property becoming tax exempt.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2008, section 477A.013, is amended by adding a
subdivision to read:


new text begin Subd. 11. new text end

new text begin 2010 city aid. new text end

new text begin For aid payable in 2010 only, each city's distribution
amount under subdivision 9 is reduced by an amount equal to 1.8889 percent of the city's
net tax capacity, as defined in section 477A.011, subdivision 20, that would otherwise be
used in calculating aids payable in 2010.
new text end

new text begin The reduction is limited to the sum of the city's payable 2010 distribution under this
section, except for city aid base under section 477A.011, subdivision 36, paragraph (z),
and the city's payable 2010 reimbursement under section 273.1384 before the reductions
in this subdivision.
new text end

new text begin The reduction is applied first to the city's distribution under this section, and then, if
necessary, to the city's reimbursements under section 273.1384.
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 begin [477A.0133] 2009 CITY AND COUNTY AID REDUCTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin City aid. new text end

new text begin The commissioner of revenue shall compute an aid
reduction amount for each city for aid payable in 2009 equal to 1.2111 percent of the city's
net tax capacity, as defined in section 477A.011, subdivision 20, that would be used in
calculating for aids payable in 2010.
new text end

new text begin The reduction is limited to the sum of the city's payable 2009 distributions, prior to
the reductions under this subdivision, under sections 273.1384 and 477A.013.
new text end

new text begin The reduction is applied first to the city's distribution under section 477A.013, and
then, if necessary, to the city's reimbursements under section 273.1384.
new text end

new text begin To the extent that sufficient information is available on each successive payment date
within the year, the commissioner of revenue shall pay any remaining 2009 distribution or
reimbursement amount that is reduced under this subdivision in equal installments on the
payment dates provided by law.
new text end

new text begin Subd. 2. new text end

new text begin County aid. new text end

new text begin The commissioner of revenue shall compute an aid reduction
amount for each county's aid under section 477A.0124 for aid payable in 2009 equal
to 0.2308 percent of the county's net tax capacity, as defined in section 477A.0124,
subdivision 2, used in calculating the 2009 certified amount.
new text end

new text begin To the extent that sufficient information is available on each payment date in 2009,
the commissioner of revenue shall pay any remaining 2009 distribution or reimbursement
amount that is reduced under this section in equal installments on the payment dates
provided by law.
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.

Minnesota Statutes 2008, section 477A.03, subdivision 2a, is amended to read:


Subd. 2a.

Cities.

For aids payable in 2009 deleted text beginand thereafterdeleted text end, the total aid paid under
section 477A.013, subdivision 9, is $526,148,487deleted text begin, subject to adjustment in subdivision 5deleted text end.
new text begin For aids payable in 2010, the total aid paid under section 477A.013, subdivision 9, prior
to the reductions under section 477A.013, subdivision 11, is $526,373,487. For aids
payable in 2011 and thereafter, the total aid paid under section 477A.013, subdivision
9, is $526,148,487.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid paid in 2010 and thereafter.
new text end

Sec. 9. new text beginAPPROPRIATION; FISCAL STABILIZATION ACCOUNT.
new text end

new text begin $6,140,000 is appropriated from the fiscal stabilization account in the federal fund to
the commissioner of revenue in fiscal year 2010 for city aid under Minnesota Statutes,
section 477A.013, subdivision 9. The general fund appropriation for city aid in Minnesota
Statutes, section 477A.03, subdivision 2a, for fiscal year 2010, for aids payable in 2009, is
reduced by $6,140,000.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2008, section 477A.03, subdivision 5, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid paid in 2010 and thereafter.
new text end

ARTICLE 8

SEASONAL RECREATIONAL PROPERTY TAX DEFERRAL PROGRAM

Section 1.

new text begin [290D.01] CITATION.
new text end

new text begin This program shall be named the "seasonal recreational property tax deferral
program."
new text end

Sec. 2.

new text begin [290D.02] TERMS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For purposes of sections 290D.01 to 290D.08, the terms
defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Primary property owner. new text end

new text begin "Primary property owner" means a person who
(1) has been the owner, or one of the owners, of the eligible property for at least 15 years
prior to the year the application is filed under section 290D.04; and (2) applies for the
deferral of property taxes under section 290D.04.
new text end

new text begin Subd. 3. new text end

new text begin Secondary property owner. new text end

new text begin "Secondary property owner" means any
person, other than the primary property owner, who has been an owner of the eligible
property for at least 15 years prior to the year the initial application is filed for deferral
of property taxes under section 290D.04.
new text end

new text begin Subd. 4. new text end

new text begin Eligible property. new text end

new text begin "Eligible property" means a parcel of property or
contiguous parcels of property under the same ownership classified as noncommercial
seasonal residential recreational 4c property under section 273.13, subdivision 25,
paragraph (d), clause (1).
new text end

new text begin Subd. 5. new text end

new text begin Base property tax amount. new text end

new text begin "Base property tax amount" means the total
property taxes levied by all taxing jurisdictions, including special assessments, on the
eligible property in the year prior to the year that the initial application is approved under
section 290D.04 and payable in the year of the application.
new text end

new text begin Subd. 6. new text end

new text begin Special assessments. new text end

new text begin "Special assessments" mean any assessment, fee, or
other charge that may be made by law, and that appears on the property tax statement for
the property for collection under the laws applicable to the enforcement of real estate taxes.
new text end

new text begin Subd. 7. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of revenue.
new text end

Sec. 3.

new text begin [290D.03] QUALIFICATIONS FOR DEFERRAL.
new text end

new text begin In order for an eligible property to qualify for treatment under this program:
new text end

new text begin (1) the eligible property must have been owned solely by the primary property owner,
or jointly with others, for at least 15 years prior to the year the initial application is filed;
new text end

new text begin (2) there must be no state or federal tax liens or judgment liens on the eligible
property;
new text end

new text begin (3) there must be no mortgages or other liens on the eligible property that secure
future advances, except for those subject to credit limits that result in compliance with
clause (4); and
new text end

new text begin (4) the total unpaid balances of debts secured by mortgages and other liens on the
eligible property, including unpaid and delinquent special assessments and interest and
any delinquent property taxes, penalties, and interest, but not including property taxes
payable during the year, must not exceed 60 percent of the assessor's estimated market
value for the current assessment year.
new text end

Sec. 4.

new text begin [290D.04] APPLICATION FOR DEFERRAL.
new text end

new text begin Subdivision 1. new text end

new text begin Initial application. new text end

new text begin (a) A primary owner of a property meeting
the qualifications under section 290D.03 may apply to the commissioner for deferral
of taxes on the eligible property. Applications are due on or before July 1 for deferral
of any taxes payable in the following year. The application, which must be prescribed
by the commissioner, shall include the following items and any other information the
commissioner deems necessary:
new text end

new text begin (1) the name, address, and Social Security number of the primary property owner
and secondary property owners, if any;
new text end

new text begin (2) a copy of the property tax statement for the current taxes payable year for the
eligible property;
new text end

new text begin (3) the initial year of ownership of the primary property owner and any second
property owners of the eligible property;
new text end

new text begin (4) information on any mortgage loans or other amounts secured by mortgages or
other liens against the eligible property, for which purpose the commissioner may require
the applicant to provide a copy of the mortgage note, the mortgage, or a statement of the
balance owed on the mortgage loan provided by the mortgage holder. The commissioner
may require the appropriate documents in connection with obtaining and confirming
information on unpaid amounts secured by other liens; and
new text end

new text begin (5) the signatures of the primary property owner and all other owners, if any, stating
that each owner agrees to enroll the eligible property in the program to defer property
taxes under this chapter.
new text end

new text begin The application must state that program participation is voluntary. The application
must also state that program participation includes authorization for the annual deferred
amount. The deferred property tax calculated by the county and the cumulative deferred
property tax amount is public data.
new text end

new text begin (b) As part of the initial application process, if the property is abstract property, the
commissioner may require the applicant to obtain at the applicant's cost a report prepared
by a licensed abstracter showing the last deed and any unsatisfied mortgages, liens,
judgments, and state and federal tax lien notices which were recorded on or after the date
of that last deed with respect to the eligible property or to the applicant.
new text end

new text begin The certificate or report need not include references to any documents filed or
recorded more than 40 years prior to the date of the certification or report. The certification
or report must be as of a date not more than 30 days prior to submission of the application
under this section.
new text end

new text begin The commissioner may also require the county recorder or county registrar of the
county where the eligible property is located to provide copies of recorded documents
related to the applicant of the eligible property, for which the recorder or registrar shall
not charge a fee. The commissioner may use any information available to determine or
verify eligibility under this section.
new text end

new text begin Subd. 2. new text end

new text begin Approval; recording. new text end

new text begin The commissioner shall approve all initial
applications that qualify under this chapter and shall notify the primary property owner on
or before December 1. The commissioner may investigate the facts or require confirmation
in regard to an application. The commissioner shall record or file a notice of qualification
for deferral, including the names of the primary and any secondary property owners and a
legal description of the eligible property, in the Office of the County Recorder, or registrar
of titles, whichever is applicable, in the county where the eligible property is located. The
notice must state that it serves as a notice of lien and that it includes deferrals under this
section for future years. The primary property owner shall pay the recording or filing fees
for the notice, which, notwithstanding section 357.18, shall be paid by that owner at the
time of satisfaction of the lien.
new text end

new text begin Subd. 3. new text end

new text begin Penalty for failure; investigations. new text end

new text begin (a) The commissioner shall assess
a penalty equal to 20 percent of the property taxes improperly deferred in the case of a
false application. The commissioner shall assess a penalty equal to 50 percent of the
property taxes improperly deferred if the taxpayer knowingly filed a false application. The
commissioner shall assess penalties under this section through the issuance of an order
under the provisions of chapter 270C. Persons affected by a commissioner's order issued
under this section may appeal as provided in chapter 270C.
new text end

new text begin (b) The commissioner may conduct investigations related to initial applications
required under this chapter within the period ending 3-1/2 years from the due date of
the application.
new text end

new text begin Subd. 4. new text end

new text begin Annual certification to commissioner. new text end

new text begin Annually, on or before July 1,
the primary property owner must certify to the commissioner that the person continues
to qualify as a primary property owner. If the primary owner has died or has transferred
the property in the preceding year, a certification may be filed by the primary owner's
spouse, or by one of the secondary owners, provided that the person is currently an
owner of the property. In this case, the primary owner's spouse or the secondary owner
shall be considered the primary owner from that point forward. If neither the primary
owner, the primary owner's spouse, or a secondary owner is eligible to file the required
annual certification for the property, the property's participation in the program shall be
terminated, and the procedures in section 290D.08 apply.
new text end

new text begin Subd. 5. new text end

new text begin Annual notice to primary property owner. new text end

new text begin Annually, on or before
September 1, the commissioner shall notify each primary property owner, in writing, of
the total cumulative deferred taxes and accrued interest on the qualifying property as of
that date.
new text end

Sec. 5.

new text begin [290D.05] DEFERRED PROPERTY TAX AMOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Calculation of deferred property tax amount. new text end

new text begin Each year after
the county auditor has determined the final property tax rates under section 275.08, the
"deferred property tax amount" must be calculated on each eligible property. The deferred
property tax amount is equal to 50 percent of the amount of the difference between (1) the
total amount of property taxes and special assessments levied upon the eligible property
for the current year by all taxing jurisdictions and (2) the eligible property's base property
tax amount. Any tax attributable to new improvements made to the eligible property after
the initial application has been approved under section 290D.04, subdivision 2, must be
excluded in determining the deferred property tax amount. The eligible property's total
current year's tax less the deferred property tax amount for the current year must be listed
on the property tax statement and is the amount due to the county under chapter 276.
Reference that the property is enrolled in the seasonal recreational property tax deferral
program under this chapter and a state lien has been recorded must be clearly printed on
the statement.
new text end

new text begin Subd. 2. new text end

new text begin Certification to commissioner. new text end

new text begin The county auditor shall annually, on or
before April 15, certify to the commissioner the property tax deferral amounts determined
under this section for each eligible property in the county. The commissioner shall
prescribe the information that is necessary to identify the eligible properties.
new text end

new text begin Subd. 3. new text end

new text begin Limitation on total amount of deferred taxes. new text end

new text begin The total amount of
deferred taxes and interest on a property, when added to (1) the balance owed on any
mortgages on the property at the time of initial application; (2) other amounts secured by
liens on the property at the time of the initial application; and (3) any unpaid and delinquent
special assessments and interest and any delinquent property taxes, penalties, and interest,
but not including property taxes payable during the year, must not exceed 60 percent of
the assessor's estimated market value of the property for the current assessment year.
new text end

Sec. 6.

new text begin [290D.06] LIEN; DEFERRED PORTION.
new text end

new text begin (a) Payment by the state to the county treasurer of property taxes, penalties, interest,
or special assessments and interest, deferred under this chapter is deemed a loan from the
state to the program participant. The commissioner shall compute the interest as provided
in section 270C.40, subdivision 5, but not to exceed two percent over the maximum
interest rate provided in section 290B.07, paragraph (a), and maintain records of the total
deferred amount and interest for each participant. Interest accrues beginning September 1
of the payable year for which the taxes are deferred. Any deferral made under this chapter
must not be construed as delinquent property taxes.
new text end

new text begin The lien created under section 272.31 continues to secure payment by the taxpayer,
or by the taxpayer's successors or assigns, of the amount deferred, including interest, with
respect to all years for which amounts are deferred. The lien for deferred taxes and interest
has the same priority as any other lien under section 272.31, except that liens, including
mortgages, recorded or filed prior to the recording or filing of the notice under section
290D.04, subdivision 2, have priority over the lien for deferred taxes and interest. A
seller's interest in a contract for deed, in which a qualifying owner is the purchaser or an
assignee of the purchaser, has priority over deferred taxes and interest on deferred taxes,
regardless of whether the contract for deed is recorded or filed. The lien for deferred taxes
and interest for future years has the same priority as the lien for deferred taxes and interest
for the first year, which is always higher in priority than any mortgages or other liens filed,
recorded, or created after the notice recorded or filed under section 290D.04, subdivision
2
. The county treasurer or auditor shall maintain records of the deferred portion and shall
list the amount of deferred taxes for the year and the cumulative deferral and interest for
all previous years as a lien against the eligible property. In any certification of unpaid
taxes for a tax parcel, the county auditor shall clearly distinguish between taxes payable in
the current year, deferred taxes and interest, and delinquent taxes. Payment of the deferred
portion becomes due and owed at the time specified in section 290D.07. Upon receipt of
the payment, the commissioner shall issue a receipt to the person making the payment
upon request and shall notify the auditor of the county in which the parcel is located,
within ten days, identifying the parcel to which the payment applies. Upon receipt by the
commissioner of collected funds in the amount of the deferral, the state's loan to the
program participant is deemed paid in full.
new text end

new text begin (b) If eligible property for which taxes have been deferred under this chapter forfeits
under chapter 281 for nonpayment of a nondeferred property tax amount, or because
of nonpayment of amounts previously deferred following a termination under section
290D.07, the lien for the taxes deferred under this chapter, plus interest and costs, shall be
canceled by the county auditor as provided in section 282.07. However, notwithstanding
any other law to the contrary, any proceeds from a subsequent sale of the eligible property
under chapter 282 or another law, must be used to first reimburse the county's forfeited
tax sale fund for any direct costs of selling the eligible property or any costs directly
related to preparing the eligible property for sale, and then to reimburse the state for
the amount of the canceled lien. Within 90 days of the receipt of any sale proceeds to
which the state is entitled under these provisions, the county auditor must pay those funds
to the commissioner by warrant for deposit in the general fund. No other deposit, use,
distribution, or release of gross sale proceeds or receipts may be made by the county until
payments sufficient to fully reimburse the state for the canceled lien amount have been
transmitted to the commissioner.
new text end

Sec. 7.

new text begin [290D.07] TERMINATION OF DEFERRAL; PAYMENT OF DEFERRED
TAXES.
new text end

new text begin Subdivision 1. new text end

new text begin Termination. new text end

new text begin (a) The deferral of taxes granted under this chapter
terminates when one of the following occurs:
new text end

new text begin (1) the eligible property is sold or transferred to someone other than the primary
owner's spouse or a secondary owner;
new text end

new text begin (2) the death of the primary owner, or in the case of a married couple, after the
death of both spouses, provided that there is not a secondary owner eligible to become
the primary owner;
new text end

new text begin (3) the primary property owner notifies the commissioner, in writing, that all owners,
including any secondary property owners, desire to discontinue the deferral; or
new text end

new text begin (4) the eligible property no longer qualifies under section 290D.03.
new text end

new text begin (b) An eligible property is not terminated from the program because no deferred
property tax amount is determined for any given year after the eligible property's initial
enrollment into the program.
new text end

new text begin (c) An eligible property is not terminated from the program if the eligible property
subsequently becomes the homestead of one or more of the property owners and the
property and the owners qualify for, and are immediately enrolled in, the senior deferral
program under chapter 290B.
new text end

new text begin Subd. 2. new text end

new text begin Payment upon termination. new text end

new text begin Upon the termination of the deferral under
subdivision 1, the amount of deferred taxes, penalties, interest, and special assessments
and interest, plus the recording or filing fees under this subdivision and section 290D.04,
subdivision 2
, becomes due and payable to the commissioner within 90 days of termination
of the deferral for terminations under subdivision 1, paragraph (a), clauses (1) and (2),
and within one year of termination of the deferral for terminations under subdivision 1,
paragraph (a), clauses (3) and (4). No additional interest is due on the deferral if timely
paid. On receipt of payment, the commissioner shall, within ten days, notify the auditor
of the county in which the parcel is located, identifying the parcel to which the payment
applies and shall remit the recording or filing fees under this subdivision and section
290D.04, subdivision 2, to the auditor. A notice of termination of deferral, containing the
legal description and the recording or filing data for the notice of qualification for deferral
under section 290D.04, subdivision 2, shall be prepared and recorded or filed by the
county auditor in the same office in which the notice of qualification for deferral under
section 290D.04, subdivision 2, was recorded or filed, and the county auditor shall mail a
copy of the notice of termination to the property owner. The property owner shall pay the
recording or filing fees. Upon recording or filing of the notice of termination of deferral,
the notice of qualification for deferral under section 290D.04, subdivision 2, and the lien
created by it are discharged. If the deferral is not timely paid, the penalty, interest, lien,
forfeiture, and other rules for the collection of ad valorem property taxes apply.
new text end

Sec. 8.

new text begin [290D.08] STATE REIMBURSEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Determination; payment. new text end

new text begin The county auditor shall determine the
total current year's deferred amount of property tax under this chapter in the county, and
submit those amounts as part of the abstracts of tax lists submitted by the county auditors
under section 275.29. The commissioner may make changes in the abstracts of tax lists as
deemed necessary. The commissioner, after such review, shall pay the deferred amount of
property tax to each county treasurer on or before August 31.
new text end

new text begin The county treasurer shall distribute as part of the October settlement the funds
received as if they had been collected as part of the property tax.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the total amount of property
tax determined under subdivision 1, plus any other amounts paid under this chapter, is
annually appropriated from the general fund to the commissioner.
new text end

Sec. 9. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 8 are effective for applications filed July 1, 2009, and thereafter.
new text end

ARTICLE 9

SPECIAL TAXES

Section 1.

Minnesota Statutes 2008, section 295.75, subdivision 2, is amended to read:


Subd. 2.

Gross receipts tax imposed.

A tax is imposed on each liquor retailer equal
to deleted text begin2.5deleted text endnew text begin fivenew text end percent of gross receipts from retail sales in Minnesota of liquor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross receipts received after
June 30, 2009.
new text end

Sec. 2.

Minnesota Statutes 2008, section 297F.01, is amended by adding a subdivision
to read:


new text begin Subd. 10b. new text end

new text begin Moist snuff. new text end

new text begin "Moist snuff" means any finely cut, ground, or powdered
smokeless tobacco that is intended to be placed or dipped in the oral cavity, but does
not include any finely cut, ground, or powdered tobacco that is intended to be placed
in the nasal cavity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 3.

Minnesota Statutes 2008, section 297F.05, subdivision 1, is amended to read:


Subdivision 1.

Rates; cigarettes.

A tax is imposed upon the sale of cigarettes in
this state, upon having cigarettes in possession in this state with intent to sell, upon any
person engaged in business as a distributor, and upon the use or storage by consumers, at
the following rates:

(1) on cigarettes weighing not more than three pounds per thousand, deleted text begin24deleted text endnew text begin 51new text end mills on
each such cigarette; and

(2) on cigarettes weighing more than three pounds per thousand, deleted text begin48deleted text endnew text begin 102new text end mills on
each such cigarette.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 4.

Minnesota Statutes 2008, section 297F.05, subdivision 3, is amended to read:


Subd. 3.

Rates; tobacco products.

new text begin(a) new text endA tax is imposed upon all tobacco products
in this state and upon any person engaged in business as a distributor, at the deleted text beginratedeleted text endnew text begin ratesnew text end ofnew text begin:new text end

new text begin (1) new text end35 percent of the wholesale sales price of the tobacco productsnew text begin other than moist
snuff; or
new text end

new text begin (2) for moist snuff, 91 cents per ounce and a proportionate tax at that rate on all
fractional parts of an ounce. The tax must be computed based on the net weight as listed
by manufacturer and rounded up to the nearest one-tenth of an ounce, provided that any
product listed by the manufacturer as having a net weight of less than 1.2 ounces must
be taxed as if the product has a net weight of 1.2 ounces
new text end.

new text begin (b) new text endThe tax is imposed at the time the distributor:

(1) brings, or causes to be brought, into this state from outside the state tobacco
products for sale;

(2) makes, manufactures, or fabricates tobacco products in this state for sale in
this state; or

(3) ships or transports tobacco products to retailers in this state, to be sold by those
retailers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, but does not apply
to any moist snuff (1) that was in the inventory of a distributor, wholesaler, or retail
dealer within this state on that date, or in the possession of a consumer within this state
on that date, and (2) as to which the tax levied by Minnesota Statutes, section 297F.05,
subdivisions 3 and 4, and the tobacco health impact fee levied by Minnesota Statutes,
section 256.9658, subdivision 3, paragraph (b), had been paid as of August 1, 2009.
new text end

Sec. 5.

Minnesota Statutes 2008, section 297F.05, subdivision 4, is amended to read:


Subd. 4.

Use tax; tobacco products.

A tax is imposed upon the use or storage by
consumers of tobacco products in this state, and upon such consumers, at the deleted text beginratedeleted text endnew text begin ratesnew text end ofnew text begin:new text end

new text begin (1) new text end35 percent of the cost to the consumer of the tobacco productsnew text begin other than moist
snuff; and
new text end

new text begin (2) for moist snuff, 91 cents per ounce and a proportionate tax at that rate on all
fractional parts of an ounce. The tax must be computed based on the net weight as listed
by manufacturer and rounded up to the nearest one-tenth of an ounce, provided that any
product listed by the manufacturer as having a net weight of less than 1.2 ounces must
be taxed as if the product has a net weight of 1.2 ounces
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, but does not apply
to any moist snuff (1) that was in the inventory of a distributor, wholesaler, or retail
dealer within this state on that date, or in the possession of a consumer within this state
on that date, and (2) as to which the tax levied by Minnesota Statutes, section 297F.05,
subdivisions 3 and 4, and the tobacco health impact fee levied by Minnesota Statutes,
section 256.9658, subdivision 3, paragraph (b), had been paid as of August 1, 2009.
new text end

Sec. 6.

Minnesota Statutes 2008, section 297F.05, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Inflation adjustment. new text end

new text begin (a) Each year the rates of tax applicable to moist
snuff under subdivisions 3 and 4 are adjusted for inflation as provided in this subdivision.
The inflation adjusted rate of tax applies to sales, use, and possession of moist snuff
during the calendar year.
new text end

new text begin (b) In making the inflation adjustment under this subdivision for a calendar year, the
commissioner shall adjust the tax rate by the percentage determined under section 1(f)
of the Internal Revenue Code of 1986, except that in section 1(f)(3)(B) the word "2010"
is substituted for the word "1992." For 2012, the commissioner shall then determine the
percentage change from the 12 months ending on August 31, 2010, to the 12 months
ending on August 31, 2011, and in each subsequent year, from the 12 months ending on
August 31, 2010, to the 12 months ending on August 31 of the year preceding the calendar
year. The amount as adjusted must be rounded to the nearest cent. If the amount ends
in 0.5 cent, the amount is rounded up to the nearest cent.
new text end

new text begin (c) The determination of the commissioner under this subdivision is not a "rule" and
is not subject to the Administrative Procedure Act in chapter 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for calendar year 2012.
new text end

Sec. 7.

Minnesota Statutes 2008, section 297G.03, subdivision 1, is amended to read:


Subdivision 1.

General rate; distilled spirits and wine.

The following excise tax is
imposed on all distilled spirits and wine manufactured, imported, sold, or possessed in
this state:

Standard
Metric
(a) Distilled spirits, liqueurs,
cordials, and specialties regardless
of alcohol content (excluding ethyl
alcohol)
$
deleted text begin5.03deleted text endnew text begin7.59new text end per
gallon
$
deleted text begin1.33deleted text end new text begin2.01
new text endper liter
(b) Wine containing 14 percent
or less alcohol by volume (except
cider as defined in section 297G.01,
subdivision 3a)
$
deleted text begin.30deleted text endnew text begin.56new text end per
gallon
$
deleted text begin.08deleted text endnew text begin.15new text end per
liter
(c) Wine containing more than
14 percent but not more than 21
percent alcohol by volume
$
deleted text begin.95deleted text endnew text begin1.20new text end per
gallon
$
deleted text begin.25deleted text endnew text begin.32 new text end per
liter
(d) Wine containing more than
21 percent but not more than 24
percent alcohol by volume
$
deleted text begin1.82deleted text endnew text begin2.07new text end per
gallon
$
deleted text begin.48deleted text endnew text begin.55new text end per
liter
(e) Wine containing more than 24
percent alcohol by volume
$
deleted text begin3.52deleted text endnew text begin3.77new text end per
gallon
$
deleted text begin .93deleted text endnew text begin1.00new text end
per liter
(f) Natural and artificial sparkling
wines containing alcohol
$
deleted text begin1.82deleted text endnew text begin2.07new text end per
gallon
$
deleted text begin .48deleted text endnew text begin.55new text end per
liter
(g) Cider as defined in section
297G.01, subdivision 3a
$
deleted text begin.15deleted text endnew text begin.41new text end per
gallon
$
deleted text begin .04deleted text endnew text begin.11new text end per
liter
(h) Low alcohol dairy cocktails
$
.08 per gallon
$
.02 per liter

In computing the tax on a package of distilled spirits or wine, a proportional tax at a
like rate on all fractional parts of a gallon or liter must be paid, except that the tax on a
fractional part of a gallon less than 1/16 of a gallon is the same as for 1/16 of a gallon.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 8.

Minnesota Statutes 2008, section 297G.04, is amended to read:


297G.04 FERMENTED MALT BEVERAGES; RATE OF TAX.

Subdivision 1.

Tax imposed.

The following excise tax is imposed on all fermented
malt beverages that are imported, directly or indirectly sold, or possessed in this state:

(1) on fermented malt beverages containing not more than 3.2 percent alcohol by
weight, deleted text begin$2.40deleted text endnew text begin $5.71new text end per 31-gallon barrel; and

(2) on fermented malt beverages containing more than 3.2 percent alcohol by
weight, deleted text begin$4.60deleted text endnew text begin $7.91new text end per 31-gallon barrel.

For fractions of a 31-gallon barrel, the tax rate is calculated proportionally.

Subd. 2.

Tax credit.

A qualified brewer producing fermented malt beverages is
entitled to a tax credit of deleted text begin$4.60deleted text endnew text begin $7.91new text end per barrel on 25,000 barrels sold in any fiscal year
beginning July 1, regardless of the alcohol content of the product. Qualified brewers may
take the credit on the 18th day of each month, but the total credit allowed may not exceed
in any fiscal year the lesser of:

(1) the liability for tax; or

(2) deleted text begin$115,000deleted text endnew text begin $198,000new text end.

For purposes of this subdivision, a "qualified brewer" means a brewer, whether
or not located in this state, manufacturing less than 100,000 barrels of fermented malt
beverages in the calendar year immediately preceding the calendar year for which the
credit under this subdivision is claimed. In determining the number of barrels, all brands
or labels of a brewer must be combined. All facilities for the manufacture of fermented
malt beverages owned or controlled by the same person, corporation, or other entity
must be treated as a single brewer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 9. new text beginFLOOR STOCKS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Cigarettes. new text end

new text begin (a) A floor stocks cigarette tax is imposed on every
person engaged in the business in this state as a distributor, retailer, subjobber, vendor,
manufacturer, or manufacturer's representative of cigarettes, on the stamped cigarettes and
unaffixed stamps in the person's possession or under the person's control at 12:01 a.m. on
July 1, 2009. The tax is imposed at the following rates:
new text end

new text begin (1) on cigarettes weighing not more than three pounds per thousand, 27 mills on
each cigarette; and
new text end

new text begin (2) on cigarettes weighing more than three pounds per thousand, 54 mills on each
cigarette.
new text end

new text begin (b) Each distributor, on or before July 15, 2009, shall file a return with the
commissioner of revenue, in the form the commissioner prescribes, showing the stamped
cigarettes and unaffixed stamps on hand at 12:01 a.m. on July 1, 2009, and the amount
of tax due on the cigarettes and unaffixed stamps. Each retailer, subjobber, vendor,
manufacturer, or manufacturer's representative, on or before July 15, 2009, shall file
a return with the commissioner of revenue, in the form the commissioner prescribes,
showing the cigarettes on hand at 12:01 a.m. on July 1, 2009, and the amount of tax due
on the cigarettes. The tax imposed by this section is due and payable on or before August
14, 2009, and after that date bears interest at the rate of one percent per month.
new text end

new text begin Subd. 2. new text end

new text begin Audit and enforcement. new text end

new text begin The tax imposed by this section is subject to
the audit, assessment, interest, appeal, refund, penalty, enforcement, administrative, and
collection provisions of Minnesota Statutes, chapters 270C and 297F. The commissioner
of revenue may require a distributor to receive and maintain copies of floor stocks fee
returns filed by all persons requesting a credit for returned cigarettes.
new text end

new text begin Subd. 3. new text end

new text begin Deposit of proceeds. new text end

new text begin The commissioner of revenue shall deposit the
revenues from the tax under this section in the state treasury and credit them to the
general fund.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10. new text beginADJUSTMENT OF CIGARETTE SALES TAX.
new text end

new text begin Effective July 1, 2009, through July 31, 2010, the cigarette sales tax under Minnesota
Statutes, section 297F.25, is 36.8 cents per pack of 20 cigarettes. Effective August 1,
2010, the rate as determined by the commissioner under Minnesota Statutes, section
297F.25, applies.
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 10

SALES AND USE TAX

Section 1.

Minnesota Statutes 2008, section 84.82, subdivision 10, is amended to read:


Subd. 10.

Proof of sales tax payment.

new text begin(a) new text endA person applying for initial registration
of a snowmobilenew text begin, or applying for reregistration for the first time after a change of
ownership under subdivision 1,
new text end must provide a snowmobile purchaser's certificate,
showing a complete description of the snowmobile, the seller's name and address, the full
purchase price of the snowmobile, and the trade-in allowance, if any. The certificate must
include information showing either (1) that the sales and use tax under chapter 297A was
paid or (2) the purchase was exempt from tax under chapter 297A. The commissioner of
public safety, in consultation with the commissioner and the commissioner of revenue,
shall prescribe the form of the certificate.

new text begin (b) new text endThe certificate is not required if the applicant provides a receipt, invoice, or other
document that shows the snowmobile was purchased from a retailer maintaining a place of
business in this state as defined in section 297A.66, subdivision 1.

new text begin (c) If the applicant cannot meet the provisions in either paragraph (a) or (b), the
applicant must provide a receipt, invoice, or other document from the previous owner
certifying the amount paid for the snowmobile, whether in money or other consideration,
and remit the applicable use tax along with the registration fee.
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, 2009.
new text end

Sec. 2.

Minnesota Statutes 2008, section 84.922, subdivision 11, is amended to read:


Subd. 11.

Proof of sales tax payment.

new text begin(a) new text endA person applying for initial registration
in Minnesota of an all-terrain vehiclenew text begin, or transfer of a registration under subdivision 4,new text end
shall provide a purchaser's certificate showing a complete description of the all-terrain
vehicle, the seller's name and address, the full purchase price of the all-terrain vehicle,
and the trade-in allowance, if any. The certificate also must include information showing
either that (1) the sales and use tax under chapter 297A was paid, or (2) the purchase
was exempt from tax under chapter 297A. The certificate is not required if the applicant
provides a receipt, invoice, or other document that shows the all-terrain vehicle was
purchased from a retailer maintaining a place of business in this state as defined in section
297A.66, subdivision 1.

new text begin (b) If the applicant cannot meet the provisions in paragraph (a), the applicant must
provide a receipt, invoice, or other document from the previous owner certifying the
amount paid for the all-terrain vehicle, whether in money or other consideration, and remit
the applicable use tax along with the registration or transfer fee.
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, 2009.
new text end

Sec. 3.

Minnesota Statutes 2008, section 86B.401, subdivision 12, is amended to read:


Subd. 12.

Proof of sales tax payment.

new text begin(a) new text endA person applying for initial licensing of
a watercraftnew text begin, or applying for a duplicate license due to change of ownership as required
in subdivision 8,
new text end must provide a watercraft purchaser's certificate, showing a complete
description of the watercraft, the seller's name and address, the full purchase price of the
watercraft, and the trade-in allowance, if any. The certificate must include information
showing either (1) that the sales and use tax under chapter 297A was paid or (2) the
purchase was exempt from tax under chapter 297A. The commissioner of public safety,
in consultation with the commissioner and the commissioner of revenue, shall prescribe
the form of the certificate.

new text begin (b) new text endThe certificate is not required if the applicant provides a receipt, invoice, or other
document that shows the watercraft was purchased from a retailer maintaining a place of
business in this state as defined in section 297A.66, subdivision 1.

new text begin (c) If the applicant cannot meet the provisions in either paragraph (a) or (b), the
applicant must provide a receipt, invoice, or other document from the previous owner
certifying the amount paid for the watercraft, whether in money or other consideration,
and remit the applicable use tax along with the license fee.
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, 2009.
new text end

Sec. 4.

new text begin [270C.085] NOTIFICATION REQUIREMENTS; SALES AND USE
TAXES.
new text end

new text begin The commissioner of revenue shall establish a means of electronically notifying
persons holding a sales tax permit under section 297A.84 of any statutory change in
chapter 297A and any issuance or change in any administrative rule, revenue notice, or
sales tax fact sheet or other written information provided by the department explaining the
interpretation or administration of the tax imposed under that chapter. The notification
must indicate the basic subject of the statute, rule, fact sheet, or other material and provide
an electronic link to the material. Any person holding a sales tax permit that provides
an electronic address to the department must receive these notifications unless they
specifically request electronically, or in writing, to be removed from the notification list.
This requirement does not replace traditional means of notifying the general public or
persons without access to electronic communications of changes in the sales tax law. The
electronic notification must begin no later than December 31, 2009.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2008, section 289A.11, subdivision 1, is amended to read:


Subdivision 1.

Return required.

new text begin(a) new text endExcept as provided in section 289A.18,
subdivision 4
, for the month in which taxes imposed by chapter 297A are payable, or for
which a return is due, a return for the preceding reporting period must be filed with the
commissioner in the form and manner the commissioner prescribes. A person making
sales at retail at two or more places of business may file a consolidated return subject to
rules prescribed by the commissioner. In computing the dollar amount of items on the
return, the amounts are rounded off to the nearest whole dollar, disregarding amounts less
than 50 cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.

new text begin (b) new text endNotwithstanding this subdivision, a person who is not required to hold a sales tax
permit under chapter 297A and who makes annual purchases, for use in a trade or business,
of less than $18,500, or a person who is not required to hold a sales tax permit and who
makes purchases for personal use, that are subject to the use tax imposed by section
297A.63, may file an annual use tax return on a form prescribed by the commissioner. If a
person who qualifies for an annual use tax reporting period is required to obtain a sales tax
permit or makes use tax purchases, for use in a trade or business, in excess of $18,500
during the calendar year, the reporting period must be considered ended at the end of the
month in which the permit is applied for or the purchase in excess of $18,500 is made and
a return must be filed for the preceding reporting period.

new text begin (c) Notwithstanding paragraph (a), a person prohibited by the person's religious
beliefs from using electronics shall be allowed to file by mail, without any additional fees.
The filer must notify the commissioner of revenue of the intent to file by mail on a form
prescribed by the commissioner. A return filed under this paragraph must be postmarked
no later than the day the return is due in order to be considered filed on a timely basis.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for returns filed after June 30, 2009.
new text end

Sec. 6.

Minnesota Statutes 2008, 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 $120,000 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 the year, the vendor must remit 90 percent
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) $20,000 or more in the fiscal year ending June 30, 2005; or

(2) $10,000 or more in the fiscal year ending June 30, 2006, and fiscal years
thereafter,

must remit all liabilities on returns due for periods beginning in the subsequent calendar
year by electronic means 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, 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.

new text begin (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 end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments remitted after June
30, 2009.
new text end

Sec. 7.

Minnesota Statutes 2008, section 297A.61, subdivision 3, is amended to read:


Subd. 3.

Sale and purchase.

(a) "Sale" and "purchase" include, but are not limited
to, each of the transactions listed in this subdivision.

(b) Sale and purchase include:

(1) any transfer of title or possession, or both, of tangible personal property,new text begin
specified digital products, or other digital products
new text end whether absolutely or conditionally, for
a consideration in money or by exchange or barter; and

(2) the leasing of or the granting of a license to use or consume, for a consideration
in money or by exchange or barter, tangible personal property,new text begin specified digital products or
other digital products,
new text end other than a manufactured home used for residential purposes for
a continuous period of 30 days or more.

(c) Sale and purchase include the production, fabrication, printing, or processing of
tangible personal property for a consideration for consumers who furnish either directly or
indirectly the materials used in the production, fabrication, printing, or processing. new text beginIt also
includes the production or processing of specified digital products or other digital products
for a consideration for consumers who furnish either directly or indirectly materials or
other inputs used in the production or processing.
new text end

(d) Sale and purchase include the preparing for a consideration of food.
Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited
to, the following:

(1) prepared food sold by the retailer;

(2) soft drinks;

(3) candy;

(4) dietary supplements; and

(5) all food sold through vending machines.

(e) A sale and a purchase includes the furnishing for a consideration of electricity,
gas, water, or steam for use or consumption within this state.

(f) A sale and a purchase includes the transfer for a consideration of prewritten
computer software whether delivered electronically, by load and leave, or otherwise.

(g) A sale and a purchase includes the furnishing for a consideration of the following
services:

(1) the privilege of admission to places of amusement, recreational areas, or athletic
events, and the making available of amusement devices, tanning facilities, reducing
salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;

(2) lodging and related services by a hotel, rooming house, resort, campground,
motel, or trailer camp, including furnishing the guest of the facility with access to
telecommunication services, and the granting of any similar license to use real property
in a specific facility, other than the renting or leasing of it for a continuous period of
30 days or more under an enforceable written agreement that may not be terminated
without prior notice;

(3) nonresidential parking services, whether on a contractual, hourly, or other
periodic basis, except for parking at a meter;

(4) the granting of membership in a club, association, or other organization if:

(i) the club, association, or other organization makes available for the use of its
members sports and athletic facilities, without regard to whether a separate charge is
assessed for use of the facilities; and

(ii) use of the sports and athletic facility is not made available to the general public
on the same basis as it is made available to members.

Granting of membership means both onetime initiation fees and periodic membership
dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
swimming pools; and other similar athletic or sports facilities;

(5) delivery of aggregate materials by a third party, excluding delivery of aggregate
material used in road construction, and delivery of concrete block by a third party if
the delivery would be subject to the sales tax if provided by the seller of the concrete
block; and

(6) services as provided in this clause:

(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
include services provided by coin operated facilities operated by the customer;

(ii) motor vehicle washing, waxing, and cleaning services, including services
provided by coin operated facilities operated by the customer, and rustproofing,
undercoating, and towing of motor vehicles;

(iii) building and residential cleaning, maintenance, and disinfecting services and
pest control and exterminating services;

(iv) detective, security, burglar, fire alarm, and armored car services; but not
including services performed within the jurisdiction they serve by off-duty licensed peace
officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit
organization for monitoring and electronic surveillance of persons placed on in-home
detention pursuant to court order or under the direction of the Minnesota Department
of Corrections;

(v) pet grooming services;

(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for
public utility lines. Services performed under a construction contract for the installation of
shrubbery, plants, sod, trees, bushes, and similar items are not taxable;

(vii) massages, except when provided by a licensed health care facility or
professional or upon written referral from a licensed health care facility or professional for
treatment of illness, injury, or disease; and

(viii) the furnishing of lodging, board, and care services for animals in kennels and
other similar arrangements, but excluding veterinary and horse boarding services.

In applying the provisions of this chapter, the terms "tangible personal property"
and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii),
and the provision of these taxable services, unless specifically provided otherwise.
Services performed by an employee for an employer are not taxable. Services performed
by a partnership or association for another partnership or association are not taxable if
one of the entities owns or controls more than 80 percent of the voting power of the
equity interest in the other entity. Services performed between members of an affiliated
group of corporations are not taxable. For purposes of the preceding sentence, "affiliated
group of corporations" means those entities that would be classified as members of an
affiliated group as defined under United States Code, title 26, section 1504, disregarding
the exclusions in section 1504(b).

For purposes of clause (5), "road construction" means construction of (1) public
roads, (2) cartways, and (3) private roads in townships located outside of the seven-county
metropolitan area up to the point of the emergency response location sign.

(h) A sale and a purchase includes the furnishing for a consideration of tangible
personal property or taxable services by the United States or any of its agencies or
instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
subdivisions.

(i) A sale and a purchase includes the furnishing for a consideration of
telecommunications services, ancillary services associated with telecommunication
services, cable television services, direct satellite services, and ring tones.
Telecommunication services include, but are not limited to, the following services,
as defined in section 297A.669: air-to-ground radiotelephone service, mobile
telecommunication service, postpaid calling service, prepaid calling service, prepaid
wireless calling service, and private communication services. The services in this
paragraph are taxed to the extent allowed under federal law.

(j) A sale and a purchase includes the furnishing for a consideration of installation if
the installation charges would be subject to the sales tax if the installation were provided
by the seller of the item being installed.

(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
65B.29, subdivision 1, clause (1).

new text begin (l) A sale and a purchase includes the furnishing for a consideration of specified
digital products and other digital products and granting the right for a consideration to use
specified digital products and other digital products on a temporary or permanent basis and
regardless of whether the purchaser is required to make continued payments for such right.
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, 2009.
new text end

Sec. 8.

Minnesota Statutes 2008, section 297A.61, subdivision 4, is amended to read:


Subd. 4.

Retail sale.

(a) A "retail sale" means any sale, lease, or rental for any
purpose, other than resale, sublease, or subrent of items by the purchaser in the normal
course of business as defined in subdivision 21.

(b) A sale of property used by the owner only by leasing it to others or by holding it
in an effort to lease it, and put to no use by the owner other than resale after the lease or
effort to lease, is a sale of property for resale.

(c) A sale of master computer software that is purchased and used to make copies for
sale or lease is a sale of property for resale.

(d) A sale of building materials, supplies, and equipment to owners, contractors,
subcontractors, or builders for the erection of buildings or the alteration, repair, or
improvement of real property is a retail sale in whatever quantity sold, whether the sale is
for purposes of resale in the form of real property or otherwise.

(e) A sale of carpeting, linoleum, or similar floor covering to a person who provides
for installation of the floor covering is a retail sale and not a sale for resale since a sale
of floor covering which includes installation is a contract for the improvement of real
property.

(f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
for installation of the items is a retail sale and not a sale for resale since a sale of
shrubbery, plants, sod, trees, and similar items that includes installation is a contract for
the improvement of real property.

(g) A sale of tangible personal propertynew text begin, specified digital products, or other digital
products
new text end that is awarded as prizes is a retail sale and is not considered a sale of property
for resale.

(h) A sale of tangible personal propertynew text begin, specified digital products, or other digital
products
new text end utilized or employed in the furnishing or providing of services under subdivision
3, paragraph (g), clause (1), including, but not limited to, property given as promotional
items, is a retail sale and is not considered a sale of property for resale.

(i) A sale of tangible personal propertynew text begin, specified digital products, or other digital
products
new text end used in conducting lawful gambling under chapter 349 or the State Lottery under
chapter 349A, including, but not limited to, property given as promotional items, is a retail
sale and is not considered a sale of property for resale.

(j) A sale of machines, equipment, or devices that are used to furnish, provide, or
dispense goods or services, including, but not limited to, coin-operated devices, is a retail
sale and is not considered a sale of property for resale.

(k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease
payment becomes due under the terms of the agreement or the trade practices of the
lessor or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01,
subdivision 11
, but excluding vehicles with a manufacturer's gross vehicle weight rating
greater than 10,000 pounds and rentals of vehicles for not more than 28 days, at the time
the lease is executed.

(l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of
title or possession of the tangible personal property.

(m) A sale of a bundled transaction in which one or more of the products included
in the bundle is a taxable product is a retail sale, except that if one of the products
is a telecommunication service, ancillary service, Internet access, or audio or video
programming service, and the seller has maintained books and records identifying through
reasonable and verifiable standards the portions of the price that are attributable to the
distinct and separately identifiable products, then the products are not considered part of a
bundled transaction. For purposes of this paragraph:

(1) the books and records maintained by the seller must be maintained in the regular
course of business, and do not include books and records created and maintained by the
seller primarily for tax purposes;

(2) books and records maintained in the regular course of business include, but are
not limited to, financial statements, general ledgers, invoicing and billing systems and
reports, and reports for regulatory tariffs and other regulatory matters; and

(3) books and records are maintained primarily for tax purposes when the books
and records identify taxable and nontaxable portions of the price, but the seller maintains
other books and records that identify different prices attributable to the distinct products
included in the same bundled transaction.

new text begin (n) A sale of specified digital products or other digital products to an end user with
or without rights of permanent use and regardless of whether rights of use are conditioned
upon continued payment by the purchaser. When a digital code has been purchased that
relates to specified digital products or other digital products, the subsequent receipt of or
access to the related specified digital products or other digital products is not a retail sale.
new text end

new text begin (o) A sale of an audio digital product or an audio visual digital product to a person
who sells the product to a customer by providing access through a jukebox or similar
amusement device is a sale for resale.
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, 2009.
new text end

Sec. 9.

Minnesota Statutes 2008, section 297A.61, subdivision 5, is amended to read:


Subd. 5.

Storage.

"Storage" includes keeping or retaining tangible personal
propertynew text begin, specified digital products, or other digital productsnew text end in Minnesota for any purpose
except sale in the regular course of business.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end

Sec. 10.

Minnesota Statutes 2008, section 297A.61, subdivision 6, is amended to read:


Subd. 6.

Use.

(a) "Use" includes the exercise of a right or power incident to the
ownership of any interest in tangible personal property, new text begin specified digital products, other
digital products,
new text endor services, purchased from a retailer, other than the sale of that property
in the regular course of business.

(b) Use includes the consumption of printed materials in the creation of nontaxable
advertising that is distributed, either directly or indirectly, within Minnesota.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end

Sec. 11.

Minnesota Statutes 2008, section 297A.61, subdivision 10, is amended to read:


Subd. 10.

Tangible personal property.

(a) "Tangible personal property" means
personal property that can be seen, weighed, measured, felt, or touched, or that is in any
other manner perceptible to the senses. "Tangible personal property" includes, but is not
limited to, electricity, water, gas, steam, and prewritten computer software.

(b) Tangible personal property does not include:

(1) large ponderous machinery and equipment used in a business or production
activity which at common law would be considered to be real property;

(2) property which is subject to an ad valorem property tax;

(3) property described in section 272.02, subdivision 9, clauses (a) to (d); and

(4) property described in section 272.03, subdivision 2, clauses (3) and (5)new text begin; and
new text end

new text begin (5) specified digital products, or other digital products transferred electronically,
except prewritten computer software delivered electronically is tangible personal property
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, 2009.
new text end

Sec. 12.

Minnesota Statutes 2008, section 297A.61, subdivision 14a, is amended to
read:


Subd. 14a.

Lease or rental.

(a) "Lease or rental" means any transfer of possession
or control of tangible personal propertynew text begin, specified digital products, or other digital
products
new text end for a fixed or indeterminate term for consideration. A lease or rental may include
future options to purchase or extend.

(b) Lease or rental does not include:

(1) a transfer of possession or control of property under a security agreement or
deferred payment plan that requires the transfer of title upon completion of the required
payments;

(2) a transfer of possession or control of property under an agreement that requires
the transfer of title upon completion of required payments and payment of an option price
does not exceed the greater of $100 or one percent of the total required payments; or

(3) providing tangible personal property along with an operator for a fixed or
indeterminate period of time. A condition of this exclusion is that the operator is necessary
for the equipment to perform as designed. For the purpose of this subdivision, an operator
must do more than maintain, inspect, or set up the tangible personal property.

(c) Lease or rental does include agreements covering motor vehicles and trailers
where the amount of consideration may be increased or decreased by reference to the
amount realized upon sale or disposition of the property as defined in United States Code,
title 26, section 7701(h)(l).

(d) This definition must be used for sales and use tax purposes regardless if a
transaction is characterized as a lease or rental under generally accepted accounting
principles, the Internal Revenue Code, chapter 336, or other provisions of federal, state, or
local law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end

Sec. 13.

Minnesota Statutes 2008, section 297A.61, subdivision 17a, is amended to
read:


Subd. 17a.

Delivered electronically.

"Delivered electronically" means delivered to
the purchaser by means other than tangible storage medianew text begin; and unless the context indicates
otherwise, applies to the delivery of computer software. Computer software is considered
"delivered electronically" to a purchaser if the purchaser has access to the product
new text endnew text begin onlinenew 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, 2009.
new text end

Sec. 14.

Minnesota Statutes 2008, section 297A.61, subdivision 21, is amended to read:


Subd. 21.

Normal course of business.

"Normal course of business" means
activities that demonstrate a commercial continuity or consistency of making sales or
performing services for the purposes of attaining profit or producing income. Factors that
indicate that a person is acting in the normal course of business include:

(1) systematic solicitation of sales through advertising media;

(2) entering into contracts to perform services or provide tangible personal propertynew text begin,
specified digital products, or other digital products
new text end;

(3) maintaining a place of business; or

(4) use of exemption certificates to purchase items exempt from the sales tax.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end

Sec. 15.

Minnesota Statutes 2008, section 297A.61, subdivision 38, is amended to read:


Subd. 38.

Bundled transaction.

(a) "Bundled transaction" means the retail sale
of two or more products when the products are otherwise distinct and identifiable, and
the products are sold for one nonitemized price. As used in this subdivision, "product"
includes tangible personal property, services, intangibles, and digital goods,new text begin including
specified digital products, or other digital products,
new text end but does not include real property or
services to real property. A bundled transaction does not include the sale of any products
in which the sales price varies, or is negotiable, based on the selection by the purchaser of
the products included in the transaction.

(b) For purposes of this subdivision, "distinct and identifiable" products does not
include:

(1) packaging and other materials, such as containers, boxes, sacks, bags, and
bottles, wrapping, labels, tags, and instruction guides, that accompany the retail sale of the
products and are incidental or immaterial to the retail sale. Examples of packaging that are
incidental or immaterial include grocery sacks, shoe boxes, dry cleaning garment bags,
and express delivery envelopes and boxes;

(2) a promotional product provided free of charge with the required purchase of
another product. A promotional product is provided free of charge if the sales price of
another product, which is required to be purchased in order to receive the promotional
product, does not vary depending on the inclusion of the promotional product; and

(3) items included in the definition of sales price.

(c) For purposes of this subdivision, the term "one nonitemized price" does not
include a price that is separately identified by product on binding sales or other supporting
sales-related documentation made available to the customer in paper or electronic form
including but not limited to an invoice, bill of sale, receipt, contract, service agreement,
lease agreement, periodic notice of rates and services, rate card, or price list.

(d) A transaction that otherwise meets the definition of a bundled transaction is
not a bundled transaction if it is:

(1) the retail sale of tangible personal property and a service and the tangible
personal property is essential to the use of the service, and is provided exclusively in
connection with the service, and the true object of the transaction is the service;

(2) the retail sale of services if one service is provided that is essential to the use or
receipt of a second service and the first service is provided exclusively in connection with
the second service and the true object of the transaction is the second service;

(3) a transaction that includes taxable products and nontaxable products and the
purchase price or sales price of the taxable products is de minimis; or

(4) the retail sale of exempt tangible personal property and taxable tangible personal
property if:

(i) the transaction includes food and food ingredients, drugs, durable medical
equipment, mobility enhancing equipment, over-the-counter drugs, prosthetic devices,
or medical supplies; and

(ii) the seller's purchase price or sales price of the taxable tangible personal property
is 50 percent or less of the total purchase price or sales price of the bundled tangible
personal property. Sellers must not use a combination of the purchase price and sales
price of the tangible personal property when making the 50 percent determination for
a transaction.

(e) For purposes of this subdivision, "purchase price" means the measure subject to
use tax on purchases made by the seller, and "de minimis" means that the seller's purchase
price or sales price of the taxable products is ten percent or less of the total purchase
price or sales price of the bundled products. Sellers shall use either the purchase price
or the sales price of the products to determine if the taxable products are de minimis.
Sellers must not use a combination of the purchase price and sales price of the products
to determine if the taxable products are de minimis. Sellers shall use the full term of a
service contract to determine if the taxable products are de minimis.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end

Sec. 16.

Minnesota Statutes 2008, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 47. new text end

new text begin Digital audio visual work. new text end

new text begin "Digital audio visual work" means a series
of related images, together with accompanying sounds, if any, which, when shown in
succession, impart an impression of motion, that are transferred electronically. Digital
audio visual works include such items as motion pictures, movies, musical videos, news
and entertainment programs, and live events. Digital audio visual works do not include
video greeting cards sent by electronic mail. Unless the context provides otherwise, digital
audio visual works include the digital code or a subscription to or access to a digital code
for receiving, accessing, or otherwise obtaining digital audio visual works.
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, 2009.
new text end

Sec. 17.

Minnesota Statutes 2008, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 48. new text end

new text begin Digital audio work. new text end

new text begin "Digital audio work" means a work that results
from the fixation of a series of musical, spoken, or other sounds, that are transferred
electronically. Digital audio works include such items as songs, music, readings of books
or other written materials, speeches, ring tones, or other sound recordings which may be
either prerecorded or live. Digital audio works do not include audio greeting cards sent
by electronic mail. Unless the context provides otherwise, digital audio works include
the digital code or a subscription to or access to a digital code for receiving, accessing,
or otherwise obtaining digital audio works. For purposes of this subdivision, "ring tone"
means a digitized sound file that is downloaded onto a device and that may be used to alert
the customer with respect to a communication. A ring tone does not include ring back tones
or other digital audio files that are not stored on the customer's communication device.
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, 2009.
new text end

Sec. 18.

Minnesota Statutes 2008, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 49. new text end

new text begin Digital book. new text end

new text begin "Digital book" means a work that is a literary work, other
than digital audio visual works or digital audio works, expressed in words, numbers, or
numerical symbols or indicia so long as the product is generally recognized in the ordinary
and usual sense as a book and is transferred electronically. It includes works of fiction,
nonfiction, and short stories. It does not include periodicals, magazines, newspapers, or
other news and information products, chat rooms, or weblogs. Unless the context provides
otherwise, digital books include the digital code or a subscription to or access to a digital
code for receiving, accessing, or otherwise obtaining digital books.
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, 2009.
new text end

Sec. 19.

Minnesota Statutes 2008, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 50. new text end

new text begin Digital code. new text end

new text begin "Digital code" means a code which provides a purchaser
with a right to obtain one or more of the specified digital products or other digital products.
A digital code may be transferred electronically such as through electronic e-mail, or
it may be transferred on a tangible medium, such as a plastic card, a piece of paper or
invoice, or imprinted on another product. A digital code is not a code that represents
stored monetary value that is deducted from a total as it is used by the purchaser and it is
not a code that represents a redeemable card, gift card, or gift certificate that entitles the
holder to select a specified digital product or other digital product of an indicated cash
value. The end user of the digital code is any purchaser except one who receives the
contractual right to redistribute the specified digital product or other digital product which
is the subject of the transaction.
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, 2009.
new text end

Sec. 20.

Minnesota Statutes 2008, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 51. new text end

new text begin Specified digital products. new text end

new text begin "Specified digital products" means
digital audio visual works, digital audio works, and digital books that are transferred
electronically to a customer.
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, 2009.
new text end

Sec. 21.

Minnesota Statutes 2008, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 52. new text end

new text begin Transferred electronically. new text end

new text begin "Transferred electronically" means obtained
by the purchaser by means other than tangible storage media and, unless the context
indicated otherwise, applies to the delivery of specified digital products and other digital
products. For purposes of this subdivision, it is not necessary that a copy of the product
be physically transferred to the purchaser. A product shall be considered to have been
transferred electronically to a purchaser if the purchaser has access to the product.
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, 2009.
new text end

Sec. 22.

Minnesota Statutes 2008, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 53. new text end

new text begin Other digital products. new text end

new text begin "Other digital products" means the following
items when transferred electronically:
new text end

new text begin (1) greeting cards;
new text end

new text begin (2) artwork available for reproduction or display purposes; and
new text end

new text begin (3) video or electronic games.
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, 2009.
new text end

Sec. 23.

Minnesota Statutes 2008, section 297A.62, is amended by adding a
subdivision to read:


new text begin Subd. 1a. new text end

new text begin Constitutionally required sales tax increase. new text end

new text begin An additional sales tax
of 0.375 percent, as required under the Minnesota Constitution, article XI, section 15, is
imposed on the gross receipts from retail sales as defined in section 297A.61, subdivision
4, made in this state or to a destination in this state by a person who is required to have
or voluntarily obtains a permit under section 297A.83, subdivision 1. This additional
tax expires July 1, 2034.
new text end

Sec. 24.

Minnesota Statutes 2008, section 297A.63, is amended to read:


297A.63 USE TAXES IMPOSED; RATES.

Subdivision 1.

Use of tangible personal propertynew text begin, specified digital products,
other digital products,
new text end or taxable services.

(a) For the privilege of using, storing,
distributing, or consuming in Minnesota tangible personal propertynew text begin, specified digital
products, other digital products,
new text end or taxable services purchased for use, storage, distribution,
or consumption in this state, a use tax is imposed on a person in Minnesota. The tax is
imposed on the purchase price of retail sales of the tangible personal propertynew text begin, specified
digital products, other digital products,
new text end or taxable services at the rate of tax imposed under
section 297A.62. A person that purchases property from a Minnesota retailer and returns
the tangible personal propertynew text begin, specified digital products, or other digital products,new text end to a
point within Minnesota, except in the course of interstate commerce, after it was delivered
outside of Minnesota, is subject to the use tax.

(b) No tax is imposed under paragraph (a) if the tax imposed by section 297A.62
was paid on the sales price of the tangible personal property or taxable services.

(c) No tax is imposed under paragraph (a) if the purchase meets the requirements for
exemption under section 297A.67, subdivision 21.

(d) When a transaction otherwise meets the definition of a bundled transaction, but
is not a bundled transaction under section 297A.61, subdivision 38, paragraph (d), and
the seller's purchase price of the taxable product or taxable tangible personal property is
equal to or greater than $100, then use tax is imposed on the purchase price of the taxable
product or taxable personal property. For purposes of this paragraph, "purchase price"
means the measure subject to use tax on purchases made by the seller.

Subd. 2.

Use of tangible personal propertynew text begin, specified digital products, other
digital products,
new text end made from materials.

(a) A use tax is imposed on a person who
manufactures, fabricates, or assembles tangible personal propertynew text begin, specified digital
products, or other digital products,
new text end from materials, either within or outside this state and
who uses, stores, distributes, or consumes the tangible personal propertynew text begin, specified digital
products, or other digital products,
new text end in Minnesota. The tax is imposed on the purchase price
of retail sales of the materials contained in the tangible personal propertynew text begin, specified digital
products, or other digital products,
new text end at the rate of tax imposed under section 297A.62.

(b) No tax is imposed under paragraph (a) if the tax imposed by section 297A.62 was
paid on the sales price of materials contained in the tangible personal propertynew text begin, specified
digital products, or other digital products
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, 2009.
new text end

Sec. 25.

Minnesota Statutes 2008, section 297A.64, subdivision 2, is amended to read:


Subd. 2.

Fee imposed.

new text begin(a) new text endA fee equal to five percent of the sales price is imposed
on leases or rentals of vehicles subject to the tax under subdivision 1. The lessor on the
invoice to the customer may designate the fee as "a fee imposed by the State of Minnesota
for the registration of rental cars."

new text begin (b) The provisions of this subdivision do not apply to the vehicles of a nonprofit
corporation or similar entity, consisting of individual or group members who pay the
organization for the use of a motor vehicle, if the organization:
new text end

new text begin (1) owns or leases a fleet of vehicles of the type subject to the tax under subdivision 1
that are available to its members for use, priced on the basis of intervals of one hour or less;
new text end

new text begin (2) parks its vehicles at unstaffed, self-service locations that are accessible at any
time of the day;
new text end

new text begin (3) maintains its vehicles, insures its vehicles on behalf of its members, and
purchases fuel for its fleet; and
new text end

new text begin (4) does not charge usage rates that decline on a per unit basis, whether specified
based on distance or time.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, and applies to
registrations made or renewed on or after that date.
new text end

Sec. 26.

Minnesota Statutes 2008, section 297A.66, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) To the extent allowed by the United States
Constitution and the laws of the United States, "retailer maintaining a place of business in
this state," or a similar term, means a retailer:

(1) having or maintaining within this state, directly or by a subsidiary or an affiliate,
an office, place of distribution, sales or sample room or place, warehouse, or other place
of business; or

(2) having a representative, including, but not limited to, an affiliate, agent,
salesperson, canvasser, or solicitor operating in this state under the authority of the retailer
or its subsidiary, for any purpose, including the repairing, selling, delivering, installing, or
soliciting of orders for the retailer's goods or services, or the leasing of tangible personal
propertynew text begin, specified digital products, or other digital products,new text end located in this state, whether
the place of business or agent, representative, affiliate, salesperson, canvasser, or solicitor
is located in the state permanently or temporarily, or whether or not the retailer, subsidiary,
or affiliate is authorized to do business in this state.

(b) "Destination of a sale" means the location to which the retailer makes delivery of
the property sold, or causes the property to be delivered, to the purchaser of the property,
or to the agent or designee of the purchaser. The delivery may be made by any means,
including the United States Postal Service or a for-hire carrier.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end

Sec. 27.

Minnesota Statutes 2008, section 297A.66, is amended by adding a
subdivision to read:


new text begin Subd. 4a. new text end

new text begin Solicitor. new text end

new text begin (a) "Solicitor," for purposes of subdivision 1, paragraph (a),
means a person, whether an independent contractor or other representative, who directly
or indirectly solicits business for the retailer.
new text end

new text begin (b) A retailer is presumed to have a solicitor in this state if it enters into an agreement
with a resident under which the resident, for a commission or other consideration, directly
or indirectly refers potential customers, whether by a link on an Internet Web site, or
otherwise, to the seller. This paragraph only applies if the total gross receipts from
sales to customers located in the state who were referred to the retailer by all residents
with this type of agreement with the retailer is at least $10,000 in the 12-month period
ending on the last day of the most recent calendar quarter before the calendar quarter in
which the sale is made.
new text end

new text begin (c) The presumption under paragraph (b) may be rebutted by proof that the resident
with whom the seller has an agreement did not engage in any solicitation in the state
on behalf of the retailer that would satisfy the nexus requirement of the United States
Constitution during the 12-month period in question. Nothing in this section shall be
construed to narrow the scope of the terms affiliate, agent, salesperson, canvasser, or other
representative for purposes of subdivision 1, paragraph (a).
new text end

new text begin (d) For purposes of this paragraph, "resident" includes an individual who is a
resident of this state, as defined in section 290.01, or a business that owns tangible
personal property located in this state or has one or more employees providing services
for it in this state.
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, 2009.
new text end

Sec. 28.

Minnesota Statutes 2008, section 297A.67, subdivision 15, is amended to read:


Subd. 15.

Residential heating fuels.

new text begin(a)new text end Residential heating fuels are exempt
as follows:

(1) all fuel oil, coal, wood, steam, hot water, propane gas, and L.P. gas sold to
residential customers for residential use;

(2) for new text beginthe period encompassing new text endthe billing months of November, December,
January, February, March, and April, new text beginthe first 850 hundred cubic feet per dwelling unit of
new text endnatural gas sold for residential use to customers who are metered and billed as residential
users and who use natural gas for their primary source of residential heat; and

(3) for new text beginthe period encompassing new text endthe billing months of November, December,
January, February, March, and April, new text beginthe first 5,750 kilowatt-hours per dwelling unit of
new text endelectricity sold for residential use to customers who are metered and billed as residential
users and who use electricity for their primary source of residential heat.

new text begin (b) Notwithstanding paragraph (a), residential heating fuel sold to a customer
registered with their natural gas or electricity service provider and receiving assistance
through a federal or state low-income home energy assistance program is exempt as
follows:
new text end

new text begin (1) for the billing months of November, December, January, February, March, and
April, natural gas sold for residential use to customers who are metered and billed as
residential users and who use natural gas for their primary source of residential heat; and
new text end

new text begin (2) for the billing months of November, December, January, February, March, and
April, electricity sold for residential use to customers who are metered and billed as
residential customers and who use electricity for their primary source of residential heat.
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, 2009.
new text end

Sec. 29.

Minnesota Statutes 2008, section 297A.67, subdivision 23, is amended to read:


Subd. 23.

Occasional sales.

Isolated and occasional sales in Minnesota not made
in the normal course of business of selling that kind of property or service are exempt.
The storage, use, or consumption of property or services acquired as a result of such a
sale is exempt. This exemption does not apply to sales of tangible personal propertynew text begin,
specified digital products, or other digital products,
new text end primarily used in a trade or businessnew text begin,
a snowmobile or all-terrain vehicle licensed under chapter 84, or to watercraft licensed
under chapter 86B
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, 2009.
new text end

Sec. 30.

Minnesota Statutes 2008, section 297A.815, subdivision 3, is amended to read:


Subd. 3.

Motor vehicle lease sales tax revenue.

(a) For purposes of this
subdivision, "deleted text beginnet revenuedeleted text endnew text begin revenuesnew text end" means an amount equal todeleted text begin:deleted text end

deleted text begin (1)deleted text end the revenues, including interest and penalties, collected under this section, during
the fiscal yeardeleted text begin; lessdeleted text endnew text begin.
new text end

deleted text begin (2) the estimated reduction in individual income tax receipts and the estimated
amount of refunds paid out under section 290.06, subdivision 34, for the fiscal year.
deleted text end

deleted text begin (b) On or before June 30 of each fiscal year, the commissioner of revenue shall
estimate the amount of the revenues and subtraction under paragraph (a) for the current
fiscal year.
deleted text end

deleted text begin (c) On or after July 1 of the subsequent fiscal year, the commissioner of finance shall
transfer the net revenue as estimated in paragraph (b) from the general fund, as follows:
deleted text end

new text begin (b) The commissioner of revenue shall estimate the revenues for each fiscal year and
transfer one-quarter of the estimated amount from the general fund on January 1, April 1,
July 1, and October 1, allocated as follows:
new text end

(1) 50 percent to the greater Minnesota transit account; and

(2) 50 percent to the county state-aid highway fund. Notwithstanding any other law
to the contrary, the commissioner of transportation shall allocate the funds transferred
under this clause to the counties in the metropolitan area, as defined in section 473.121,
subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall
receive of such amount the percentage that its population, as defined in section 477A.011,
subdivision 3, estimated or established by July 15 of the year prior to the current calendar
year, bears to the total population of the counties receiving funds under this clause.

(d) For fiscal years 2010 and 2011, the deleted text beginamount under paragraph (a), clause (1),deleted text endnew text begin
revenues
new text end must be calculated using the following percentages deleted text beginof the total revenuesdeleted text end:

(1) for fiscal year 2010, 83.75 percent; and

(2) for fiscal year 2011, 93.75 percent.

Sec. 31.

Minnesota Statutes 2008, section 297A.83, subdivision 3, is amended to read:


Subd. 3.

Commissioner's discretion.

(a) The commissioner may decline to issue a
permit to a retailer not maintaining a place of business in this state, or may cancel a permit
previously issued to the retailer, if the commissioner believes that the tax can be collected
more effectively from the persons using the property in this state. A refusal to issue or
cancellation of a permit on such grounds does not affect the retailer's right to make retail
sales from outside this state to destinations within this state.

(b) If the commissioner considers it necessary for the efficient administration of the
tax to regard a salesperson, representative, trucker, peddler, or canvasser as the agent of
the dealer, distributor, supervisor, employer, or other person under whom that person
operates or from whom the person obtains the tangible personal propertynew text begin, specified digital
products, or other digital products,
new text end sold, whether making sales personally or in behalf of
that dealer, distributor, supervisor, employer, or other person, the commissioner may
regard the salesperson, representative, trucker, peddler, or canvasser as such agent, and
may regard the dealer, distributor, supervisor, employer, or other person as a retailer for
the purposes of collecting the tax.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end

Sec. 32.

Minnesota Statutes 2008, section 297A.94, is amended to read:


297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for
the construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment
was made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of finance shall certify to the commissioner the date on which the
project received the conditional commitment. The amount deposited in the loan guaranty
account must be reduced by any refunds and by the costs incurred by the Department of
Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties,
derived from the taxes imposed on sales and purchases included in section 297A.61,
subdivision 3
, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general
fund.

(d) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5
, for the previous calendar year.

(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and
penalties, transmitted to the commissioner under section 297A.65, must be deposited by
the commissioner in the state treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account
in the game and fish fund, and may be spent only on activities that improve, enhance, or
protect fish and wildlife resources, including conservation, restoration, and enhancement
of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund,
and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
Conservatory, and the Duluth Zoo.

(f) The revenue dedicated under paragraph (e) may not be used as a substitute
for traditional sources of funding for the purposes specified, but the dedicated revenue
shall supplement traditional sources of funding for those purposes. Land acquired with
money deposited in the game and fish fund under paragraph (e) must be open to public
hunting and fishing during the open season, except that in aquatic management areas or
on lands where angling easements have been acquired, fishing may be prohibited during
certain times of the year and hunting may be prohibited. At least 87 percent of the money
deposited in the game and fish fund for improvement, enhancement, or protection of fish
and wildlife resources under paragraph (e) must be allocated for field operations.

new text begin (g) The revenues deposited under paragraphs (a) to (f) do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section
297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
Constitution, article XI, section 15.
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. 33.

Minnesota Statutes 2008, section 297A.99, subdivision 6, is amended to read:


Subd. 6.

Use tax.

A compensating use tax applies, at the same rate as the sales tax,
on the use, storage, distribution, or consumption of tangible personal propertynew text begin, specified
digital products, other digital products,
new text end or taxable services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end

Sec. 34.

Minnesota Statutes 2008, section 297B.02, subdivision 1, is amended to read:


Subdivision 1.

Rate.

There is imposed an excise tax deleted text beginat the rate provided in chapter
297A
deleted text endnew text begin of 6.5 percentnew text end on the purchase price of any motor vehicle purchased or acquired,
either in or outside of the state of Minnesota, which is required to be registered under
the laws of this state.

The excise tax is also imposed on the purchase price of motor vehicles purchased
or acquired on Indian reservations when the tribal council has entered into a sales tax on
motor vehicles refund agreement with the state of Minnesota.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end

Sec. 35.

Laws 1986, chapter 396, section 4, subdivision 3, is amended to read:


Subd. 3.

Use of property.

Revenues received from the tax may only be used:

(1) to pay costs of collection;

(2) to pay or secure the payment of any principal of, premium or interest on bonds
issued in accordance with this act;

(3) to pay costs to acquire, design, equip, construct, improve, maintain, operate,
administer, or promote the convention center or related facilities, including financing
costs related to them;

(4) to pay reasonable and appropriate costs determined by the city to replace housing
removed from the site; deleted text beginanddeleted text end

(5) to maintain reserves for the foregoing purposes deemed reasonable and
appropriate by the citydeleted text begin.deleted text endnew text begin; and
new text end

new text begin (6) to fund projects under subdivision 4.
new text end

deleted text begin In the event of any amendment to chapter 297A enacted subsequent to the effective date
of this act which exempts sales or uses which were taxable under chapter 297A on the
effective date of this act, the city may by ordinance extend the tax authorized hereby to
any such sales or uses provided that the city council shall have determined that such
extension is necessary to provide revenues for the uses to which taxes may be applied
under this section and further provided that, in the estimation of the city council, the
aggregate annual collections following such extension will not exceed the aggregate
annual collections which would have been generated if chapter 297A, as in effect on the
effective date of this act, were then in effect. Any revenue bonds issued in accordance
with this act may, with the consent of the city council, contain a covenant that the tax will
be so extended to the extent necessary to pay principal and interest on the bonds when due.
deleted text end

Money for replacement housing shall be made available by the city only for new
construction, conversion of nonresidential buildings, and for rehabilitation of vacant
residential structures, only if all of the units in the newly constructed building, converted
nonresidential building, or rehabilitated residential structure are to be used for replacement
housing.

new text begin EFFECTIVE DATE. new text end

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

Sec. 36.

Laws 1986, chapter 396, section 4, is amended by adding a subdivision to read:


new text begin Subd. 4. new text end

new text begin Minneapolis downtown and neighborhood projects. new text end

new text begin To the extent that
revenues from the tax authorized in subdivision 1 exceeds the amount needed to fund the
purposes in subdivision 3, the city may use the excess revenue in any year to fund capital
projects to further residential, cultural, commercial, and economic development in both
downtown Minneapolis and the Minneapolis neighborhoods.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance of the governing
body of the city of Minneapolis with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
new text end

Sec. 37.

Laws 1986, chapter 400, section 44, as amended by Laws 1995, chapter 264,
article 2, section 39, is amended to read:


Sec. 44. DOWNTOWN TAXING AREA.

If a bill is enacted into law in the 1986 legislative session which authorizes the city
of Minneapolis to issue bonds and expend certain funds including taxes to finance the
acquisition and betterment of a convention center and related facilities, which authorizes
certain taxes to be levied in a downtown taxing area, then, notwithstanding the provisions
of that law "downtown taxing area" shall mean the geographic area bounded by the
portion of the Mississippi River between I-35W and Washington Avenue, the portion
of Washington Avenue between the river and I-35W, the portion of I-35W between
Washington Avenue and 8th Street South, the portion of 8th Street South between I-35W
and Portland Avenue South, the portion of Portland Avenue South between 8th Street
South and I-94, the portion of I-94 from the intersection of Portland Avenue South to
the intersection of I-94 and the Burlington Northern Railroad tracks, the portion of the
Burlington Northern Railroad tracks from I-94 to Main Street and including Nicollet
Island, and the portion of Main Street to Hennepin Avenue and the portion of Hennepin
Avenue between Main Street and 2nd Street S.E., and the portion of 2nd Street S.E.
between Main Street and Bank Street, and the portion of Bank Street between 2nd Street
S.E. and University Avenue S.E., and the portion of University Avenue S.E. between Bank
Street and I-35W, and by I-35W from University Avenue S.E., to the river. The downtown
taxing area excludes the area bounded on the south and west by Oak Grove Street, on the
east by Spruce Place, and on the north by West 15th Street.new text begin The downtown taxing area
also excludes any property located in a zoned area that is contained in chapter 546 of the
Minneapolis zone code of ordinances on which a restaurant or liquor establishment is
operated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales made after July 31, 2012,
provided that the proceeds of the tax collected between July 1, 2009, and July 31, 2012,
by a restaurant or liquor establishment that is excluded from the downtown taxing area
by this section, when collected by the commissioner of revenue, shall be deposited in the
general fund of the state treasury.
new text end

Sec. 38.

Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended
by Laws 1998, chapter 389, article 8, section 28, and Laws 2008, chapter 366, article
7, section 9, is amended to read:


Subd. 3.

Use of revenues.

Revenues received from taxes authorized by subdivisions
1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or
a portion of the expenses of constructing and improving facilities as part of an urban
revitalization project in downtown Mankato known as Riverfront 2000. Authorized
expenses include, but are not limited to, acquiring property and paying relocation expenses
related to the development of Riverfront 2000 and related facilities, and securing or paying
debt service on bonds or other obligations issued to finance the construction of Riverfront
2000 and related facilities. For purposes of this section, "Riverfront 2000 and related
facilities" means a civic-convention center, an arena, a riverfront park, a technology center
and related educational facilities, and all publicly owned real or personal property that
the governing body of the city determines will be necessary to facilitate the use of these
facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and
landscaping. It also includes the performing arts theatre and the Southern Minnesota
Women's Hockey Exposition Center, deleted text beginattached to the Mankato Civic Centerdeleted text end for use by
Minnesota State University, Mankato.

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

Sec. 39.

Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by
Laws 1997, chapter 231, article 7, section 40, and Laws 1998, chapter 389, article 8,
section 30, and Laws 2003, First Special Session chapter 21, article 8, section 13, and
Laws 2005, First Special Session chapter 3, article 5, section 26, is amended to read:


Subd. 2.

Use of revenues.

Revenues received from the tax authorized by
subdivision 1 may only be used by the city to pay the cost of collecting the tax, and to pay
for the following projects or to secure or pay any principal, premium, or interest on bonds
issued in accordance with subdivision 3 for the following projects.

(a) To pay all or a portion of the capital expenses of construction, equipment and
acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex,
including the demolition of the existing arena and the construction and equipping of a
new arena.

(b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be
spent for:

(1) capital projects to further residential, cultural, commercial, and economic
development in both downtown St. Paul and St. Paul neighborhoods; and

(2) capital and operating expenses of cultural organizations in the city, provided
that the amount spent under this clause must equal ten percent of the total amount spent
under this paragraph in any year.

(c) The amount apportioned under paragraph (b) shall be no less than 60 percent
of the revenues derived from the tax each year, except to the extent that a portion of that
amount is required to pay debt service on (1) bonds issued for the purposes of paragraph (a)
prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1,
1998, but only if the city council determines that 40 percent of the revenues derived from
the tax together with other revenues pledged to the payment of the bonds, including the
proceeds of definitive bonds, is expected to exceed the annual debt service on the bonds.

(d) If in any year more than 40 percent of the revenue derived from the tax authorized
by subdivision 1 is used to pay debt service on the bonds issued for the purposes of
paragraph (a) and to fund a reserve for the bonds, the amount of the debt service payment
that exceeds 40 percent of the revenue must be determined for that year. In any year when
40 percent of the revenue produced by the sales tax exceeds the amount required to pay
debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the
amount of the excess must be made available for capital projects to further residential,
cultural, commercial, and economic development in the neighborhoods and downtown
until the cumulative amounts determined for all years under the preceding sentence have
been made available under this sentence. The amount made available as reimbursement in
the preceding sentence is not included in the 60 percent determined under paragraph (c).

(e) In each of calendar years 2006deleted text begin, 2007, 2008, and 2009deleted text endnew text begin to 2014new text end, revenue not to
exceed $3,500,000 may be used to pay the principal of bonds issued for capital projects of
the city. After December 31, deleted text begin2009deleted text endnew text begin 2014new text end, revenue from the tax imposed under subdivision
1 may not be used for this purpose.

(f) By January 15 of each year, the mayor and the city council must report to the
legislature on the use of sales tax revenues during the preceding one-year period.

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

Sec. 40.

Laws 1993, chapter 375, article 9, section 46, is amended by adding a
subdivision to read:


new text begin Subd. 2a. new text end

new text begin Unexpended funds and interest. new text end

new text begin Any interest from loan repayments
or returned funds from revenues apportioned under subdivision 2, paragraph (b), clause
(1), must be made available only for projects qualifying under subdivision 2, paragraph
(b), clause (1).
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. Paul and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 41.

Laws 1996, chapter 471, article 2, section 30, is amended to read:


Sec. 30. CITY OF LITTLE FALLS; TAX AUTHORIZED.

Subdivision 1.

Sales of food; tax.

The city of Little Falls may by ordinance impose
a tax of one-half percent on the gross receipts from the retail sale of food and nonalcoholic
beverages sold by the operator of a restaurant or place of refreshment within the city. The
tax imposed may be effective at any time after July 1, 1996.

new text begin Subd. 1a. new text end

new text begin Sale of alcoholic beverages. new text end

new text begin The city of Little Falls may also by
ordinance impose the tax in subdivision 1 on the sales of alcoholic beverages sold by the
operator of a restaurant or place of refreshment in the city. Notwithstanding subdivision
5, and regardless of when the city imposes the tax under this subdivision, this tax will
expire when the tax in subdivision 1 expires.
new text end

Subd. 2.

Definitions.

For purposes of this section:

(1) "restaurant" means every building or other structure or enclosure, or any part
thereof and all buildings in connection, kept, used or maintained as, or held out to the
public to be an enclosure where meals or lunches are served or prepared for service
elsewhere, except schools;

(2) "place of refreshment" means every building, structure, vehicle, sidewalk cart or
any part thereof, used as, maintained as, or advertised as, or held out to be a place where
confectionery, ice cream, or drinks of various kinds are made, sold, or served at retail,
excepting schools and school sponsored events; and

(3) "operator" means the person who is the proprietor of the restaurant, or place of
refreshment, whether in the capacity of owner, lessee, subleases, licensee, or an other
capacity.

Subd. 3.

Use of proceeds.

The ordinance adopted by the city shall provide for
distribution of the proceeds of the tax. The proceeds of the tax must be used for tourism
purposes, including operating and maintaining the activities and programs of the tourism
and convention bureau.

Subd. 4.

Enforcement, collection, and administration of taxes.

The tax imposed
under this section shall be enforced, administered, and collected by the city of Little Falls
provided that the city may contract with the commissioner of revenue to perform audits of
the tax on behalf of the city. The commissioner shall charge the city an amount that equals
the direct and indirect costs incurred by the department that are necessary to audit the tax.

Subd. 5.

Expiration of taxing authority.

The tax imposed under deleted text beginthis section shall
expire 15
deleted text endnew text begin subdivision 1 expires 30new text end years after it first becomes effective.

Subd. 6.

Effective date.

This section is effective the day following compliance by
the governing body of the city of Little Falls with Minnesota Statutes, section 645.021,
subdivision 3
.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following compliance by
the governing body of the city of Little Falls with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 42.

Laws 1998, chapter 389, article 8, section 37, subdivision 1, is amended to
read:


Subdivision 1.

Requirement.

Expenditures of revenues from the sales tax imposed
by the city of St. Paul that are dedicated to neighborhood investments may be made only
after review of the proposals for expenditures by the citizen review panel described in this
section. new text beginThe panel must ensure that the application process for all proposals is open, fair,
and competitive. All proposals must be reviewed by the panel prior to presentation of the
proposal to the city council.
new text endThe panel must evaluate the proposals and provide a report
to the city council that makes recommendations regarding the proposed expenditures
in rank order.

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

Sec. 43.

Laws 2002, chapter 377, article 3, section 25, is amended to read:


Sec. 25. ROCHESTER LODGING TAX.

Subdivision 1.

Authorization.

Notwithstanding Minnesota Statutes, section
469.190 or 477A.016, or any other law, the city of Rochester may impose an additional
tax of one percent on the gross receipts from the furnishing for consideration of lodging at
a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it
for a continuous period of 30 days or more.

new text begin Subd. 1a. new text end

new text begin Authorization. new text end

new text begin Notwithstanding Minnesota Statutes, section 469.190 or
477A.016, or any other law, and in addition to the tax authorized by subdivision 1, the city
of Rochester may impose an additional tax of one percent on the gross receipts from the
furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or
resort, other than the renting or leasing of it for a continuous period of 30 days or more
only upon (1) enactment of a law appropriating state money for construction costs of
renovating, improving, or expanding the Mayo Civic Center Complex; and (2) approval of
the city governing body of a total financial package for the project.
new text end

Subd. 2.

Disposition of proceeds.

new text begin(a) new text endThe gross proceeds from deleted text beginanydeleted text endnew text begin thenew text end tax imposed
under subdivision 1 must be used by the city to fund a local convention or tourism bureau
for the purpose of marketing and promoting the city as a tourist or convention center.

new text begin (b) The gross proceeds from the one percent tax imposed under subdivision 1a shall
be used to pay for (1) construction, renovation, improvement, and expansion of the Mayo
Civic Center and related skyway access, lighting, parking, or landscaping; and (2) for
payment of any principal, interest, or premium on bonds issued to finance the construction,
renovation, improvement, and expansion of the Mayo Civic Center Complex.
new text end

new text begin Subd. 3. new text end

new text begin Expiration of taxing authority. new text end

new text begin The authority of the city to impose a tax
under subdivision 1a shall expire when the principal and interest on any bonds or other
obligations issued to finance the construction, renovation, improvement, and expansion
of the Mayo Civic Center Complex and related skyway access, lighting, parking, or
landscaping have been paid or at an earlier time as the city shall, by ordinance, determine.
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 Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 44.

Laws 2006, chapter 259, article 3, section 12, subdivision 3, is amended to
read:


Subd. 3.

Use of revenues.

Revenues received from the taxes authorized by
subdivisions 1 and 2 must be used to pay all or part of the capital costs of transportation
projects included in the 2004 U.S. Highway 14-Owatonna Beltline Study by the Minnesota
Department of Transportation, Steele County, and the city of Owatonna; regional parks
and trail developments; and the West Hills complex, including the firehall, and library
improvement projects; as described in the city resolution No. 4-06, Exhibit A, as adopted
by the city on January 17, 2006. new text beginNotwithstanding the specific transportation projects
described in city resolution No. 4-06, Exhibit A, the city may transfer up to $1,500,000
of the sales and use tax revenues from the Alexander Street to 39th Avenue Southwest
project to the reconstruction of 18th Street Southwest from 24th Avenue Southwest to 39th
Avenue West.
new text endThe amount paid from these revenues for transportation projects may not
exceed $4,450,000 plus associated bond costs. The amount paid from these revenues for
park and trail projects may not exceed $5,400,000 plus associated bond costs. The amount
paid from these revenues for West Hills complex, fire hall, and library improvement
projects may not exceed $2,823,000 plus associated bond costs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the
governing body of the city of Owatonna with Minnesota Statutes, section 645.021,
subdivision 3.
new text end

Sec. 45.

Laws 2008, chapter 366, article 7, section 16, subdivision 3, is amended to
read:


Subd. 3.

Use of proceeds from authorized taxes.

The proceeds of any tax imposed
under subdivisions 1 and 2 shall be used by the city to pay all or a portion of the expenses
of operation and maintenance of the Riverfront 2000 and related facilities, including a
performing arts theatre and the Southern Minnesota Women's Hockey Exposition Center,
deleted text begin attached to the Mankato Civic Centerdeleted text end for use by Minnesota State University, Mankato.
Authorized expenses include securing or paying debt service on bonds or other obligations
issued to finance the construction of the facilities.

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

Sec. 46. new text beginSALES AND LOCAL LODGING TAXES COLLECTION;
DEPARTMENT OF REVENUE.
new text end

new text begin (a) The Department of Revenue shall collect from an online travel company, by all
available means authorized by law for the collection of taxes, the amount of sales and
local lodging taxes uncollected by an online travel company and owed to a city and the
state, plus interest and penalties, on the total rent paid for lodging in a hotel, rooming
house, tourist court, motel, or trailer camp, or for the granting of any similar license
to use real property.
new text end

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

new text begin (1) "online travel company" means a person who offers information on the Internet
about the availability of accommodations to a customer, arranges for the customer's
occupancy of the accommodations, and collects the rental payments from the customer for
occupancy of the accommodations;
new text end

new text begin (2) "total rent paid" means the cost of lodging;
new text end

new text begin (3) "unpaid amount of sales and local lodging taxes" means the state sales tax rate as
defined in Minnesota Statutes, section 297A.62, subdivision 1, plus the applicable local
lodging tax rate as applied against the total rent paid by a customer to an online travel
company less the amount of sales and local lodging taxes collected by the online travel
company and remitted to a lodging entity at the time the online travel company purchased
the right to make reservations on behalf of a customer to rent a lodging accommodation.
new text end

new text begin (c) A city that imposes a local lodging tax must make a request to the Department of
Revenue for action to be taken under this section.
new text end

new text begin (d) The commissioner of revenue may request the attorney general to conduct legal
proceedings, if necessary, on behalf of the state to enforce the provisions of 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.
new text end

Sec. 47. new text beginROCHESTER FOOD AND BEVERAGE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other law or charter provision, the city of Rochester may impose a tax of
one percent on the gross receipts on all sales of food and beverages by restaurants and
places of refreshment, as defined by resolution of the city, that occur in the city. For
purposes of this section, "food and beverages" include retail on-sale of intoxicating liquor
and fermented malt beverages.
new text end

new text begin Subd. 2. new text end

new text begin Use of proceeds. new text end

new text begin The proceeds of this tax shall be used for (1) paying the
cost of collection; (2) to pay for construction, renovation, improvement, and expansion
of the Mayo Civic Center Complex and related skyway access, lighting, parking, or
landscaping; and (3) for payment of any principal, interest, or premium on bonds issued
to finance the construction, renovation, improvement, and expansion of the Mayo Civic
Center Complex.
new text end

new text begin Subd. 3. new text end

new text begin Imposition of the tax. new text end

new text begin The tax under this section may only be imposed
upon (1) enactment of a law appropriating state money for construction costs of
renovating, improving, or expanding the Mayo Civic Center Complex; and (2) approval of
the city governing body of a total financing package for the project.
new text end

new text begin Subd. 4. new text end

new text begin Expiration of taxing authority. new text end

new text begin The authority granted under subdivision
1 to the city to impose a one percent tax on food and beverages shall expire when the
principal and interest on any bonds or other obligations issued to finance the construction,
renovation, improvement, and expansion of the Mayo Civic Center Complex and related
skyway access, lighting, parking, or landscaping have been paid or at an earlier time
as the city shall, by ordinance, determine.
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 Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3, and upon approval of the city governing body of a total
financing package to renovate, improve, or expand the Mayo Civic Center Complex.
new text end

Sec. 48. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 297A.61, subdivision 45, new text end new text begin is repealed.
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, 2009.
new text end

ARTICLE 11

LOCAL DEVELOPMENT

Section 1.

Minnesota Statutes 2008, section 469.174, subdivision 22, is amended to
read:


Subd. 22.

Tourism facility.

"Tourism facility" means property that:

(1) is located in a county where the median income is no more than 85 percent of
the state median income;

(2) is located in a county in development region 2, 3, 4, deleted text beginordeleted text end 5, new text beginor 7E, new text endas defined
in section 462.385;

(3) is not located in a city with a population in excess of 20,000; and

(4) is acquired, constructed, or rehabilitated for use as a convention and meeting
facility that is privately owned, marina, hotel, motel, lodging facility, or nonhomestead
dwelling unit that in each case is intended to serve primarily individuals from outside
the county.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for requests for certification made
after June 30, 2009.
new text end

Sec. 2.

Minnesota Statutes 2008, section 469.175, subdivision 1, is amended to read:


Subdivision 1.

Tax increment financing plan.

(a) A tax increment financing plan
shall contain:

(1) a statement of objectives of an authority for the improvement of a project;

(2) a statement as to deleted text beginthe development program for the project, includingdeleted text end the property
within the project, if any, that the authority intends to acquire, identified by parcel number,
identifiable property name, block, or other appropriate means indicating the area in which
the authority intends to acquire properties;

(3) a list of any development activities that the plan proposes to take place within
the project, deleted text beginfor which contracts have been entered into at the time of the preparation of
the plan,
deleted text end including the names of the parties to the contract, the activity governed by the
contract, the new text beginestimated new text endcost stated in the contract, and the expected date of completion
of that activity;

(4) identification or description of the type of any other specific development
reasonably expected to take place within the deleted text beginprojectdeleted text endnew text begin districtnew text end, and the date when the
development is likely to occur;

(5) estimates of the following:

(i) cost of the project, including administrative expensesdeleted text begin, except that if part of the
cost of the project is paid or financed with increment from the tax increment financing
district, the tax increment financing plan for the district must contain an estimate of the
amount of the cost of the project, including administrative expenses,
deleted text endnew text begin and interest costsnew text end
that will be paid or financed with tax increments from the districtnew text begin, but not to exceed the
estimated tax increment generated by the development activity
new text end;

(ii) amount of deleted text beginbonded indebtedness to be incurreddeleted text endnew text begin bonds to be issuednew text end;

(iii) deleted text beginsources of revenue to finance or otherwise pay public costs;
deleted text end

deleted text begin (iv)deleted text end the deleted text beginmost recentdeleted text end new text beginoriginal new text endnet tax capacity of taxable real property within the tax
increment financing district and within any subdistrict;

deleted text begin (v)deleted text end new text begin(iv) new text endthe estimated captured net tax capacity of the tax increment financing district
at completion; and

deleted text begin (vi)deleted text endnew text begin (v)new text end the duration of the tax increment financing district's and any subdistrict's
existence;

(6) statements of the authority's alternate estimates of the impact of tax increment
financing on the net tax capacities of all taxing jurisdictions in which the tax increment
financing district is located in whole or in part. For purposes of one statement, the
authority shall assume that the estimated captured net tax capacity would be available to
the taxing jurisdictions without creation of the district, and for purposes of the second
statement, the authority shall assume that none of the estimated captured net tax capacity
would be available to the taxing jurisdictions without creation of the district or subdistrict;

(7) identification and description of studies and analyses used to make the
determination set forth in subdivision 3, clause (2); and

(8) identification of all parcels to be included in the district or any subdistrict.

(b) The authority may specify in the tax increment financing plan the first year in
which it elects to receive increment, up to four years following the year of approval of the
district. This paragraph does not apply to an economic development district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax increment financing plans
approved after June 30, 2009.
new text end

Sec. 3.

Minnesota Statutes 2008, section 469.175, subdivision 6, is amended to read:


Subd. 6.

Annual financial reporting.

(a) The state auditor shall develop a uniform
system of accounting and financial reporting for tax increment financing districts. The
system of accounting and financial reporting shall, as nearly as possible:

(1) provide for full disclosure of the sources and uses of deleted text beginpublic funds indeleted text endnew text begin tax
increments of
new text end the district;

(2) permit comparison and reconciliation with the affected local government's
accounts and financial reports;

(3) permit auditing of the funds expended on behalf of a district, including a single
district that is part of a multidistrict project or that is funded in part or whole through
the use of a development account funded with tax increments from other districts or
with other public money;

(4) be consistent with generally accepted accounting principles.

(b) The authority must annually submit to the state auditor a financial report
in compliance with paragraph (a). Copies of the report must also be provided to the
county auditor and to the governing body of the municipality, if the authority is not
the municipality. To the extent necessary to permit compliance with the requirement
of financial reporting, the county and any other appropriate local government unit or
private entity must provide the necessary records or information to the authority or the
state auditor as provided by the system of accounting and financial reporting developed
pursuant to paragraph (a). The authority must submit the annual report for a year on or
before August 1 of the next year.

(c) The annual financial report must also include the following items:

(1) the original net tax capacity of the district and any subdistrict under section
469.177, subdivision 1;

(2) the net tax capacity for the reporting period of the district and any subdistrict;

(3) the captured net tax capacity of the district;

(4) any fiscal disparity deduction from the captured net tax capacity under section
469.177, subdivision 3;

(5) the captured net tax capacity retained for tax increment financing under section
469.177, subdivision 2, paragraph (a), clause (1);

(6) any captured net tax capacity distributed among affected taxing districts under
section 469.177, subdivision 2, paragraph (a), clause (2);

(7) the type of district;

(8) the date the municipality approved the tax increment financing plan and the
date of approval of any modification of the tax increment financing plan, the approval of
which requires notice, discussion, a public hearing, and findings under subdivision 4,
paragraph (a);

(9) the date the authority first requested certification of the original net tax capacity
of the district and the date of the request for certification regarding any parcel added
to the district;

(10) the date the county auditor first certified the original net tax capacity of the
district and the date of certification of the original net tax capacity of any parcel added
to the district;

(11) the month and year in which the authority has received or anticipates it will
receive the first increment from the district;

(12) the date the district must be decertified;

(13) for the reporting period and prior years of the district, the actual amount
received from, at least, the following categories:

(i) tax increments paid by the captured net tax capacity retained for tax increment
financing under section 469.177, subdivision 2, paragraph (a), clause (1), but excluding
any excess taxes;

(ii) tax increments that are interest or other investment earnings on or from tax
increments;

(iii) tax increments that are proceeds from the sale or lease of property, tangible or
intangible, purchased by the authority with tax increments;

(iv) tax increments that are repayments of loans or other advances made by the
authority with tax increments;

(v) bond deleted text beginor loandeleted text end proceeds;new text begin and
new text end

deleted text begin (vi) special assessments;
deleted text end

deleted text begin (vii) grants;
deleted text end

deleted text begin (viii) transfers from funds not exclusively associated with the district; and
deleted text end

deleted text begin (ix)deleted text endnew text begin (vi)new text end the market value homestead credit paid to the authority under section
273.1384;

(14) for the reporting period and for the prior years of the district, the actual amount
expended for, at least, the following categories:

(i) acquisition of land and buildings through condemnation or purchase;

(ii) site improvements or preparation costs;

(iii) installation of public utilities, parking facilities, streets, roads, sidewalks, or
other similar public improvements;

(iv) administrative costs, including the allocated cost of the authority;new text begin and
new text end

(v) deleted text beginpublic park facilities, facilities for social, recreational, or conference purposes, or
other similar public improvements; and
deleted text endnew text begin for housing districts, construction of affordable
housing;
new text end

deleted text begin (vi) transfers to funds not exclusively associated with the district;
deleted text end

(15) the amount of any payments for activities and improvements located outside of
the district that are paid for or financed with tax increments;

(16) the amount of payments of principal and interest that are made during the
reporting period on any nondefeased:

(i) general obligation tax increment financing bonds;new text begin and
new text end

(ii) other tax increment financing bondsnew text begin, including pay-as-you-go contracts and
notes
new text end; deleted text beginand
deleted text end

deleted text begin (iii) notes and pay-as-you-go contracts;
deleted text end

(17) the principal amount, at the end of the reporting period, of any nondefeased:

(i) general obligation tax increment financing bonds;new text begin and
new text end

(ii) other tax increment financing bondsnew text begin, including pay-as-you-go contracts and
notes
new text end; deleted text beginand
deleted text end

deleted text begin (iii) notes and pay-as-you-go contracts;
deleted text end

(18) the amount of principal and interest payments that are due for the current
calendar year on any nondefeased:

(i) general obligation tax increment financing bonds;new text begin and
new text end

(ii) other tax increment financing bondsnew text begin, including pay-as-you-go contracts and
notes
new text end; deleted text beginand
deleted text end

deleted text begin (iii) notes and pay-as-you-go contracts;
deleted text end

(19) if the fiscal disparities contribution under chapter 276A or 473F for the district
is computed under section 469.177, subdivision 3, paragraph (a), the amount of new text begintotal
new text endincreased property taxes deleted text beginimposed on other properties in the municipality that approved the
tax increment financing plan as a result of the fiscal disparities contribution;
deleted text endnew text begin to be paid
from outside the tax increment financing district; and
new text end

(20) deleted text beginthe estimate, if any, contained in the tax increment financing plan of the amount
of the cost of the project, including administrative expenses, that will be paid or financed
with tax increment; and
deleted text end

deleted text begin (21)deleted text end any additional information the state auditor may require.

deleted text begin (d) The commissioner of revenue shall prescribe the method of calculating the
increased property taxes under paragraph (c), clause (19), and the form of the statement
disclosing this information on the annual statement under subdivision 5.
deleted text end

deleted text begin (e)deleted text endnew text begin (d)new text end The reporting requirements imposed by this subdivision apply to districts
certified before, on, and after August 1, 1979.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax increment financing reports
due after December 31, 2009.
new text end

Sec. 4.

Minnesota Statutes 2008, section 469.176, subdivision 3, is amended to read:


Subd. 3.

Limitation on administrative expenses.

(a) For districts for which
certification was requested before August 1, 1979, or after June 30, 1982 and before
August 1, 2001, no tax increment shall be used to pay any administrative expenses for
a project which exceed ten percent of the total estimated tax increment expenditures
authorized by the tax increment financing plan or the total tax increment expenditures
for the project, whichever is less.

(b) For districts for which certification was requested after July 31, 1979, and before
July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in
Minnesota Statutes 1980, section 273.73, for a district which exceeds five percent of the
total tax increment expenditures authorized by the tax increment financing plan or the total
estimated tax increment expenditures for the district, whichever is less.

(c) For districts for which certification was requested after July 31, 2001, no tax
increment may be used to pay any administrative expenses for a project which exceed
ten percent of total estimated tax increment expenditures authorized by the tax increment
financing plan or the total tax increments, as defined in section 469.174, subdivision 25,
clause (1), from the district, whichever is less.

new text begin (d) Increments used to pay the county's administrative expenses under subdivision
4h are not subject to the percentage limits in this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all districts, regardless of when
the request for certification was made.
new text end

Sec. 5.

Minnesota Statutes 2008, section 469.176, is amended by adding a subdivision
to read:


new text begin Subd. 4m. new text end

new text begin Use to offset state aid reductions. new text end

new text begin (a) Notwithstanding any other
provision of this section, section 469.1763, or a special law, upon the request of the
municipality, the authority may elect, by resolution, to transfer increments from a district
to the municipality for deposit in its general fund. The permitted transfer for a calendar
year is limited to the amount allowed under paragraph (b). Following the election,
expenditure of increments from the district are limited by the conditions in paragraph (c).
The transferred increments may be expended for any purpose the municipality's general
fund permits.
new text end

new text begin (b) For each calendar year for which transfers are permitted under this section,
the maximum transfer equals the lesser of:
new text end

new text begin (1) the excess of the district's available increment over the sum of:
new text end

new text begin (i) required payments of obligations that will come due during the calendar year or
the first six months of the following calendar year on outstanding bonds and binding
contracts to which the district's increments are pledged; plus
new text end

new text begin (ii) transfers of increments from the district to offset deficits in other districts to be
made during the calendar year under section 469.1763, subdivision 6; or
new text end

new text begin (2) the sum of the following amounts, limited to the relevant amounts that are
effective through the calendar year in which the transfer is to be made:
new text end

new text begin (i) unallotment of aid payments previously certified by the state to be paid to the
municipality during calendar years 2008 to 2010;
new text end

new text begin (ii) reductions in state reimbursement payments for property tax credits to be paid
to the municipality in calendar years 2008 to 2010; and
new text end

new text begin (iii) reductions in local government aids to be paid to the municipality resulting from
reductions in the appropriation or changes in the formula, enacted by the legislature, for
calendar years 2009 to 2010; less
new text end

new text begin (iv) any special levy made by the municipality under section 275.70, subdivision
5, clause (22).
new text end

new text begin (c) Following an election under this subdivision, an authority may expend
increments from the district for only the following purposes:
new text end

new text begin (1) payment of bonds and binding contracts with an entity not under the control of
the municipality or authority to which the district's increments were pledged that were
outstanding when the election was made;
new text end

new text begin (2) transfers to offset deficits in other districts as permitted under section 469.1763,
subdivision 6;
new text end

new text begin (3) administrative expenses of the district; and
new text end

new text begin (4) transfers permitted under this subdivision.
new text end

new text begin (d) The commissioner of revenue shall calculate and certify the amount, if any, of
the reduction under paragraph (b), clause (2), item (iii), for a city, upon request of the city.
new text end

new text begin (g) The authority to transfer increments under this section does not apply to a
municipality, if the captured tax capacity of the municipality exceeds 12 percent of the
municipality's total tax capacity for the taxes payable year in which the transfer is made.
new text end

new text begin (f) The authority to transfer increments under this section expires on December
31, 2010.
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 increments from any district, regardless of when the request for certification
was made.
new text end

Sec. 6.

Minnesota Statutes 2008, section 469.176, subdivision 6, is amended to read:


Subd. 6.

Action required.

new text begin(a) new text endIf, after four years from the date of certification of
the original net tax capacity of the tax increment financing district pursuant to section
469.177, no demolition, rehabilitation, or renovation of property or other site preparation,
including qualified improvement of a street adjacent to a parcel but not installation
of utility service including sewer or water systems, has been commenced on a parcel
located within a tax increment financing district by the authority or by the owner of the
parcel in accordance with the tax increment financing plan, no additional tax increment
may be taken from that parcel, and the original net tax capacity of that parcel shall be
excluded from the original net tax capacity of the tax increment financing district. If the
authority or the owner of the parcel subsequently commences demolition, rehabilitation,
or renovation or other site preparation on that parcel including qualified improvement of
a street adjacent to that parcel, in accordance with the tax increment financing plan, the
authority shall certify to the county auditor that the activity has commenced, and the
county auditor shall certify the net tax capacity thereof as most recently certified by the
commissioner of revenue and add it to the original net tax capacity of the tax increment
financing district. The county auditor must enforce the provisions of this subdivision. The
authority must submit to the county auditor evidence that the required activity has taken
place for each parcel in the district. The evidence for a parcel must be submitted by
February 1 of the fifth year following the year in which the parcel was certified as included
in the district. For purposes of this subdivision, qualified improvements of a street are
limited to (1) construction or opening of a new street, (2) relocation of a street, and (3)
substantial reconstruction or rebuilding of an existing street.

new text begin (b) For districts which were certified on or after January 1, 2005, and before July 1,
2010, the four-year period under paragraph (a) is increased to six years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts certified on or after
January 1, 2005.
new text end

Sec. 7.

Minnesota Statutes 2008, section 469.1763, subdivision 2, is amended to read:


Subd. 2.

Expenditures outside district.

(a) For each tax increment financing
district, an amount equal to at least 75 percent of the total revenue derived from tax
increments paid by properties in the district must be expended on activities in the district
or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the request for certification
was made after June 30, 1995, the in-district percentage for purposes of the preceding
sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
increments paid by properties in the district may be expended, through a development fund
or otherwise, on activities outside of the district but within the defined geographic area of
the project except to pay, or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the request for certification was
made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
20 percent. The revenue derived from tax increments for the district that are expended on
costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
calculating the percentages that must be expended within and without the district.

(b) In the case of a housing district, a housing project, as defined in section 469.174,
subdivision 11
, is an activity in the district.

(c) All administrative expenses are for activities outside of the district, except that
if the only expenses for activities outside of the district under this subdivision are for
the purposes described in paragraph (d), administrative expenses will be considered as
expenditures for activities in the district.

(d) The authority may elect, in the tax increment financing plan for the district,
to increase by up to ten percentage points the permitted amount of expenditures for
activities located outside the geographic area of the district under paragraph (a). As
permitted by section 469.176, subdivision 4k, the expenditures, including the permitted
expenditures under paragraph (a), need not be made within the geographic area of the
project. Expenditures that meet the requirements of this paragraph are legally permitted
expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j.
To qualify for the increase under this paragraph, the expenditures must:

(1)new text begin(i)new text end be used exclusively to assist housing that meets the requirement for a qualified
low-income building, as that term is used in section 42 of the Internal Revenue Code;

deleted text begin (2)deleted text endnew text begin (ii)new text end not exceed the qualified basis of the housing, as defined under section 42(c)
of the Internal Revenue Code, less the amount of any credit allowed under section 42 of
the Internal Revenue Code; and

deleted text begin (3)deleted text endnew text begin (iii)new text end be used to:

deleted text begin (i)deleted text endnew text begin (A)new text end acquire and prepare the site of the housing;

deleted text begin (ii)deleted text endnew text begin (B)new text end acquire, construct, or rehabilitate the housing; or

deleted text begin (iii)deleted text endnew text begin (C)new text end make public improvements directly related to the housingnew text begin; or
new text end

new text begin (2) be used to develop housing that does not exceed 150 percent of the average
market value of single-family homes in that municipality and to pay the cost of site
acquisition, relocation, demolition of existing structures, site preparation, and pollution
abatement on one or more parcels, if the parcel:
new text end

new text begin (i) contains a residence containing one to four family dwelling units that has been
vacant for three or more months;
new text end

new text begin (ii) contains a residence containing one to four family dwelling units that is
structurally substandard, as defined in section 469.174, subdivision 10;
new text end

new text begin (iii) is in foreclosure as defined in section 325N.10, subdivision 7, but without regard
to whether the residence is the owner's principal residence; or
new text end

new text begin (iv) is a vacant site, if the authority uses the parcel in connection with the
development or redevelopment of a parcel qualifying under items (i) to (iii)
new text end.

(e) For a district created within a biotechnology and health sciences industry zone
as defined in section 469.330, subdivision 6, or for an existing district located within
such a zone, tax increment derived from such a district may be expended outside of the
district but within the zone only for expenditures required for the construction of public
infrastructure necessary to support the activities of the zone, land acquisition, and other
redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are
considered as expenditures for activities within the district.

new text begin (f) The authority under paragraph (d), clause (2), expires on December 31, 2015.
Increments may continue to be expended under this authority after that date, if they are
used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
(a), if December 31, 2015 is considered to be the last date of the five-year period after
certification under that provision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for any district that is subject to the
provisions of section 469.1763, regardless of when the request for certification of the
district was made.
new text end

Sec. 8.

Minnesota Statutes 2008, section 469.1763, subdivision 3, is amended to read:


Subd. 3.

Five-year rule.

(a) Revenues derived from tax increments are considered
to have been expended on an activity within the district under subdivision 2 only if one
of the following occurs:

(1) before or within five years after certification of the district, the revenues are
actually paid to a third party with respect to the activity;

(2) bonds, the proceeds of which must be used to finance the activity, are issued and
sold to a third party before or within five years after certification, the revenues are spent
to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
reasonably expected to be spent before the end of the later of (i) the five-year period, or
(ii) a reasonable temporary period within the meaning of the use of that term under section
148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
or replacement fund;

(3) binding contracts with a third party are entered into for performance of the
activity before or within five years after certification of the district and the revenues are
spent under the contractual obligation;

(4) costs with respect to the activity are paid before or within five years after
certification of the district and the revenues are spent to reimburse a party for payment
of the costs, including interest on unreimbursed costs; or

(5) expenditures are made for housing purposes as permitted by subdivision 2,
paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
by subdivision 2, paragraph (e).

(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
the original refunded bonds meet the requirements of paragraph (a), clause (2).

new text begin (c) For districts which were certified on or after January 1, 2004, and before July 1,
2010, the five-year period under paragraph (a) is increased to eight years. For districts
qualifying under this paragraph, application of subdivision 4 begins in the ninth year
following certification of the district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts certified on or after
January 1, 2004.
new text end

Sec. 9.

Minnesota Statutes 2008, section 469.178, subdivision 7, is amended to read:


Subd. 7.

Interfund loans.

The authority or municipality may advance or loan
money to finance expenditures under section 469.176, subdivision 4, from its general
fund or any other fund under which it has legal authority to do so. The loan or advance
must be authorized, by resolution of the governing body or of the authority, whichever
has jurisdiction over the fund from which the advance or loan is deleted text beginmadedeleted text endnew text begin authorizednew text end, before
money is transferred, advanced, or spent, whichever is earliest. The resolution may
generally grant to the authority the power to make interfund loans under one or more tax
increment financing plans or for one or more districts. The terms and conditions for
repayment of the loan must be provided in writing and include, at a minimum, the principal
amount, the interest rate, and maximum term. The maximum rate of interest permitted to
be charged is limited to the greater of the rates specified under section 270C.40 or 549.09
as of the date the loan or advance is deleted text beginmadedeleted text endnew text begin authorizednew text end, unless the written agreement states
that the maximum interest rate will fluctuate as the interest rates specified under section
270C.40 or 549.09 are from time to time adjusted.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for interfund loans made after June
30, 2009.
new text end

Sec. 10.

Laws 1995, chapter 264, article 5, section 44, subdivision 4, as amended by
Laws 1996, chapter 471, article 7, section 21, and Laws 1997, chapter 231, article 10,
section 12, and Laws 2008, chapter 154, article 9, section 18, is amended to read:


Subd. 4.

Authority.

For housing replacement projects in the city of Crystal,
"authority" means the Crystal economic development authority. For housing replacement
projects in the city of Fridley, "authority" means the housing and redevelopment authority
in and for the city of Fridley or a successor in interest. For housing replacement
projects in the city of Minneapolis, "authority" means the Minneapolis community
development agency or its successors and assigns. For housing replacement projects
in the city of St. Paul, "authority" means the St. Paul housing and redevelopment
authority. For housing replacement projects in the city of Duluth, "authority" means the
Duluth economic development authority. For housing replacement projects in the city of
Richfield, "authority" is the authority as defined in Minnesota Statutes, section 469.174,
subdivision 2
, that is designated by the governing body of the city of Richfield. For
housing replacement projects in the city of Columbia Heights, "authority" is the authority
as defined in Minnesota Statutes, section 469.174, subdivision 2, that is designated by
the governing body of the city of Columbia Heights.new text begin For housing replacement projects in
the city of Brooklyn Park, "authority" is the authority as defined in Minnesota Statutes,
section 469.174, subdivision 2, that is designated by the governing body of the city of
Brooklyn Park.
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 the city of Brooklyn Park without local approval under Minnesota Statutes,
section 645.023, subdivision 1, clause (a).
new text end

Sec. 11.

Laws 1995, chapter 264, article 5, section 45, subdivision 1, as amended by
Laws 1996, chapter 471, article 7, section 22, and Laws 1997, chapter 231, article 10,
section 13, and Laws 2002, chapter 377, article 7, section 6, and Laws 2008, chapter 154,
article 9, section 19, is amended to read:


Subdivision 1.

Creation of projects.

(a) An authority may create a housing
replacement project under sections 44 to 47, as provided in this section.

(b) For the cities of Crystal, Fridley, Richfield, deleted text beginanddeleted text end Columbia Heightsnew text begin, and Brooklyn
Park
new text end, the authority may designate up to deleted text begin50deleted text endnew text begin 100new text end parcels in the city to be included in a
housing replacement districtnew text begin over the life of a district or districtsnew text end. deleted text beginNo more than ten
parcels may be included in year one of the district, with up to ten additional parcels added
to the district in each of the following nine years.
deleted text end For the cities of St. Paul and Duluth,
each authority may designate not more than 200 parcels in the city to be included in a
housing replacement district over the life of the district. For the city of Minneapolis, the
authority may designate not more than 400 parcels in the city to be included in housing
replacement districts over the life of the districts. The only parcels that may be included
in a district are (1) vacant sites, (2) parcels containing vacant houses, or (3) parcels
containing houses that are structurally substandard, as defined in Minnesota Statutes,
section 469.174, subdivision 10.

(c) The city in which the authority is located must pay at least 25 percent of the
housing replacement project costs from its general fund, a property tax levy, or other
unrestricted money, not including tax increments.

(d) The housing replacement district plan must have as its sole object the acquisition
of parcels for the purpose of preparing the site to be sold for market rate housing. As
used in this section, "market rate housing" means housing that has a market value that
does not exceed 150 percent of the average market value of single-family housing in that
municipality.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the affected cities without local approval under Minnesota Statutes, section
645.023, subdivision 1, clause (a).
new text end

Sec. 12.

Laws 2008, chapter 366, article 5, section 34, is amended to read:


Sec. 34. CITY OF OAKDALE; ORIGINAL TAX CAPACITY.

(a) The provisions of this section apply to redevelopment tax increment financing
districts created by the Housing and Redevelopment Authority in and for the city of
Oakdale in the areas comprised of the parcels with the following parcel identification
numbers: (1) 3102921320053; 3102921320054; 3102921320055; 3102921320056;
3102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059;
3102921320060; deleted text beginanddeleted text end 3102921320061; deleted text beginand (2)deleted text end 3102921330005new text begin;new text end and 3102921330004new text begin; and
(2) 2902921330001 and 2902921330005
new text end.

(b) For a district subject to this section, the Housing and Redevelopment Authority
may, when requesting certification of the original tax capacity of the district under
Minnesota Statutes, section 469.177, elect to have the original tax capacity of the district
be certified as the tax capacity of the land.

(c) The authority to request certification of a district under this section expires on
July 1, 2013.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing
body of the city of Oakdale and compliance with Minnesota Statutes, section 645.021,
subdivision 3
.
new text end

Sec. 13. new text beginHOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF
SOUTH ST. PAUL; TAX INCREMENT FINANCING DISTRICT.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding the provisions of any other law,
the Housing and Redevelopment Authority of the city of South St. Paul may establish a
redevelopment tax increment financing district comprised of the properties included in the
existing Concord Street tax increment district in the city that are exempt under Minnesota
Statutes, section 469.179, subdivision 1, and were not decertified before July 1, 2009. The
district created under this section may be certified after August 1, 2009, and terminates no
later than December 31, 2024. The Housing and Redevelopment Authority of the city of
South St. Paul may create the district under this section only if it enters into an agreement
with Dakota County to pay the county annually out of the increment from this district an
amount equal to the tax that would have been payable to the county on the captured tax
capacity of the district had the district not been created.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin The requirements for qualifying a redevelopment district
under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located
within the district. Minnesota Statutes, section 469.176, subdivisions 4j and 4l, do not
apply to the district. The original tax capacity of the district is $354,945.
new text end

new text begin Subd. 3. new text end

new text begin Authorized expenditures. new text end

new text begin Tax increment from the district may be
expended to pay for any eligible activities authorized by Minnesota Statutes, chapter
469, within the redevelopment area that includes the district. All such expenditures are
deemed to be activities within the district under Minnesota Statutes, section 469.1763,
subdivisions 2, 3, and 4.
new text end

new text begin Subd. 4. new text end

new text begin Adjusted net tax capacity. new text end

new text begin The captured tax capacity of the district must
be included in the adjusted net tax capacity of the city, county, and school district for the
purposes of determining local government aid, education aid, and county program aid.
The county auditor shall report to the commissioner of revenue the amount of the captured
tax capacity for the district at the time the assessment abstracts are filed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance with Minnesota
Statutes, section 645.021, subdivision 3, by the governing body of the city of South St.
Paul.
new text end

Sec. 14. new text beginCITY OF MINNETONKA; TAX INCREMENT FINANCING
DISTRICT EXTENSION.
new text end

new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision
1b, paragraph (a), clause (1), the governing bodies of the city of Minnetonka and its
economic development authority may elect to extend the maximum duration of all or
a portion the Glenhaven Tax Increment Financing District by up to seven years. The
city may make the election under this section only if it finds by resolution that when it
approved the original tax increment financing plan for the Glenhaven Tax Increment
Financing District the area of the district qualified to be certified as a redevelopment
district under Minnesota Statutes, section 469.174, subdivision 10, or that the portion of
the district it is electing to extend so qualified. The city must document this finding in the
manner provided under Minnesota Statutes, section 469.175, subdivision 3, paragraph (b),
clause (1), for a redevelopment district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance with Minnesota
Statutes, sections 469.1782, subdivision 2, and 645.021, subdivision 3.
new text end

Sec. 15. new text beginCITY OF ARDEN HILLS; SPECIAL TAX INCREMENT FINANCING
AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The city of Arden Hills may establish within the
corporate boundaries of the city a redevelopment tax increment financing district subject
to the special rules under subdivision 2. The district must be located within the area
described in the TCAAP Boundary Survey dated December 12, 2007, by W. Brown Land
Surveying, Inc.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin (a) If the city elects to adopt the tax increment financing
plan in subdivision 1 for the district, the following rules apply to the district:
new text end

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

new text begin (2) the five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to a ten-year period; and
new text end

new text begin (3) the duration limit under Minnesota Statutes, section 469.176, subdivision 1b,
paragraph (a), clause (4), is extended to 30 years after receipt of the first increment.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 469.175, subdivision 1, paragraph
(b), the city may designate the first year in which it elects to receive an increment, up to six
years following the year of approval of the district. The city must make the designation
by written notice to the county auditor delivered by June 30 of the year prior to the
designated year of first receipt.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to
establish a tax increment financing district under this section expires December 31, 2019.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing body
of the city of Arden Hills and upon compliance by the city with Minnesota Statutes,
sections 469.1782, subdivision 2, and 645.021, subdivision 3.
new text end

Sec. 16. new text beginCITY OF ST. PAUL; AUTHORITY TO EXERCISE SPECIAL LAW
AUTHORITY.
new text end

new text begin Notwithstanding the failure of the governing body of the city of St. Paul to approve
Laws 1995, chapter 264, article 5, sections 44 to 47, as required by Laws 1995, chapter
264, article 5, section 49, the provisions of sections 44 to 47, as amended, apply to the city
of St. Paul without local approval under Minnesota Statutes, section 645.023, subdivision
1, clause (a).
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. 17. new text beginCITY OF SAUK RAPIDS; TAX INCREMENT FINANCING DISTRICT.
new text end

new text begin Any parcel in the city of Sauk Rapids located within Blocks 26, 27, 59, 61, and 62,
original town of Sauk Rapids Plat, is deemed to meet the requirements of Minnesota
Statutes, section 469.174, subdivision 10, paragraph (d), clause (1), if the following
conditions are met:
new text end

new text begin (1) a building on the parcel was demolished in compliance with Minnesota Statutes,
section 469.174, subdivision 10, paragraph (d), clause (2), after the authority adopted a
resolution pursuant to Minnesota Statutes, section 469.174, subdivision 10, paragraph
(d), clause (3); and
new text end

new text begin (2) the request for certification of the parcel as part of a district is filed with the
county auditor by December 31, 2012, or three years after the date of demolition,
whichever is later.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the governing
body of the city of Sauk Rapids with the requirements of Minnesota Statutes, section
645.021, subdivision 3.
new text end

Sec. 18. new text beginSEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT
FINANCING DISTRICT; SPECIAL RULES.
new text end

new text begin (a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan
or plans and the governing body of the city of Duluth approves the plan or plans for one
or more tax increment financing districts consisting of one or more parcels identified as:
010-2730-00010; 010-2730-00020; 010-2730-00040; 010-2730-00050; 010-2730-00070;
010-2730-00080; 010-2730-00090; 010-2730-00100; 010-2730-00160; 010-2730-00180;
010-2730-00200; 010-2730-01250; 010-2730-01340; 010-2730-01350; 010-2730-01490;
010-2730-01500; 010-2730-01510; 010-2730-01520; 010-2730-01530; 010-2730-01540;
010-2730-01550; 010-2730-01560; 010-2730-01570; 010-2730-01580; 010-2730-01590;
010-2730-1300; 010-2746-1330; 010-2746-1440; 010-2746-1380; 010-3300-4560;
010-3300-4565; 010-3300-04570; 010-3300-04580; 010-3300-04640; 010-3300-04645;
and 010-3300-04650, the five-year rule under 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, must be considered to be met if the
activities are undertaken within five years after the date all qualifying parcels are delisted
from the Federal Superfund list.
new text end

new text begin (b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4,
beginning in the sixth year following certification of the district requirement, will begin
in the sixth year following the date all qualifying parcels are delisted from the Federal
Superfund list.
new text end

new text begin (c) For purposes of this section, "qualifying parcels" means United States Steel
parcels listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as
part of the USS Site (USEPA OU 02) that are:
new text end

new text begin (1) included in the tax increment financing district; and
new text end

new text begin (2) on which actions are taken that meet the requirements of Minnesota Statutes,
section 469.176, subdivision 6.
new text end

new text begin (d) In addition to the reporting requirements of Minnesota Statutes, section 469.175,
subdivision 5, the Seaway Port Authority of Duluth shall report the status of all parcels
listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status
report must show the parcel numbers, the listed or delisted status, and if delisted, the
delisting date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing
body of the city of Duluth and compliance with Minnesota Statutes, section 645.021,
subdivision 3.
new text end

Sec. 19. new text beginCITY OF MANKATO; TAX INCREMENT FINANCING DISTRICT;
PROJECT REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Expenditures outside district. new text end

new text begin Notwithstanding Minnesota Statutes,
section 469.1763, subdivision 2, or any other law to the contrary, the city of Mankato may
expend increments generated from its South Riverfront tax increment financing district for
construction of street and roadway improvements under the Sibley Parkway Plan, provided
the improvements are located within 500 feet or less of the boundaries of the district.
new text end

new text begin Subd. 2. new text end

new text begin Five-year rule. new text end

new text begin The five-year rule under Minnesota Statutes, section
469.1763, subdivision 3, is extended to an 11-year period for the South Riverfront tax
increment financing district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing
body of the city of Mankato and upon compliance by the city with Minnesota Statutes,
section 645.021, subdivision 3.
new text end

Sec. 20. new text beginCITY OF FARIBAULT; JOBZ EXTENSION.
new text end

new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.312, subdivision
5, the city of Faribault may, with approval by the commissioner of employment and
economic development, extend the duration of a job opportunity building zone located
within its corporate boundaries by five years. This authority applies to a zone that borders
on Trunk Highway No. I-35 and Park Avenue. The authority to extend the duration of
the zone applies only if the city enters a business subsidy agreement that provides for a
business, which is engaged in manufacturing products that increase the efficiency of the
use of energy resources, to construct or improve a facility in the zone.
new text end

new text begin The authority to extend the duration of a zone under this section expires January 1,
2011.
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 12

MINERALS

Section 1.

Minnesota Statutes 2008, section 298.001, is amended by adding a
subdivision to read:


new text begin Subd. 10. new text end

new text begin Nonferrous minerals assistance area. new text end

new text begin The area of the "nonferrous
minerals assistance area" means the area of the following independent school districts, or
their successor districts:
new text end

new text begin (1) No. 166, Cook County;
new text end

new text begin (2) No. 316, Coleraine;
new text end

new text begin (3) No. 318, Grand Rapids;
new text end

new text begin (4) No. 319, Nashwauk-Keewatin;
new text end

new text begin (5) No. 381, Lake Superior;
new text end

new text begin (6) No. 695, Chisholm;
new text end

new text begin (7) No. 696, Ely;
new text end

new text begin (8) No. 701, Hibbing;
new text end

new text begin (9) No. 706, Virginia;
new text end

new text begin (10) No. 712, Mountain Iron-Buhl;
new text end

new text begin (11) No. 2711, Mesabi-East;
new text end

new text begin (12) No. 2142, St. Louis County; and
new text end

new text begin (13) No. 2154, Eveleth-Gilbert.
new text end

Sec. 2.

Minnesota Statutes 2008, section 298.018, subdivision 1, is amended to read:


Subdivision 1.

Within deleted text begintaconitedeleted text endnew text begin nonferrous mineralsnew text end assistance area.

The
proceeds of the tax paid under sections 298.015 to 298.017 on minerals and energy
resources mined or extracted within the deleted text begintaconitedeleted text endnew text begin nonferrous mineralsnew text end assistance area
deleted text begin defined in section 273.1341,deleted text end shall be allocated as follows:

(1) five percent to the city or town within which the minerals or energy resources
are mined or extracted;

(2) ten percent to the taconite municipal aid account to be distributed deleted text beginas provided
in section 298.282
deleted text endnew text begin to qualifying municipalities, as defined in section 298.282, located in
the nonferrous minerals assistance area
new text end;

(3) ten percent to the school district within which the minerals or energy resources
are mined or extracted;

(4) deleted text begin20deleted text endnew text begin 30new text end percent to a group of school districts comprised of those school districts
wherein the mineral or energy resource was mined or extracted or in which there is a
qualifying municipality as defined by section 273.134, paragraph (b), in direct proportion
to school district indexes as follows: for each school district, its pupil units determined
under section 126C.05 for the prior school year shall be multiplied by the ratio of the
average adjusted net tax capacity per pupil unit for school districts receiving aid under
this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
Each district shall receive that portion of the distribution which its index bears to the sum
of the indices for all school districts that receive the distributionsnew text begin. These amounts are not
subject to sections 126C.21, subdivision 4, and 126C.48, subdivision 8
new text end;

(5) 20 percent to the county within which the minerals or energy resources are
mined or extracted;

(6) deleted text begin20 percent to St. Louis County acting as the counties' fiscal agent to be
distributed as provided in sections 273.134 to 273.136;
deleted text end

deleted text begin (7)deleted text end five percent to the Iron Range Resources and Rehabilitation Board for the
purposes of section 298.22;

deleted text begin (8) fivedeleted text endnew text begin (7) tennew text end percent to the Douglas J. Johnson economic protection trust fund; and

deleted text begin (9) fivedeleted text endnew text begin (8) tennew text end percent to the taconite environmental protection fund.

The proceeds of the tax shall be distributed on July 15 each year.

Sec. 3.

Minnesota Statutes 2008, section 298.018, subdivision 2, is amended to read:


Subd. 2.

Outside deleted text begintaconitedeleted text end new text beginnonferrous minerals new text endassistance area.

The proceeds of
the tax paid under sections 298.015 to 298.017 on minerals and energy resources mined or
extracted outside of the deleted text begintaconitedeleted text end new text beginnonferrous minerals new text endassistance area defined in section
273.1341, shall be deposited in the general fund.

Sec. 4.

Minnesota Statutes 2008, section 298.018, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Segregation of funds. new text end

new text begin The proceeds of the tax allocated under subdivision
1, clauses (2), (6), (7), and (8), including the investment earnings on the funds, must be
segregated and separately accounted for in the respective funds or accounts to which
they are allocated. These amounts must only be distributed to municipalities within the
nonferrous minerals assistance area or used for projects within the area.
new text end

Sec. 5.

Minnesota Statutes 2008, section 298.227, is amended to read:


298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

(a) An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by
the Iron Range Resources and Rehabilitation Board in a separate taconite economic
development fund for each taconite and direct reduced ore producer. Money from the
fund for each producer shall be released by the commissioner after review by a joint
committee consisting of an equal number of representatives of the salaried employees and
the nonsalaried production and maintenance employees of that producer. The District 11
director of the United States Steelworkers of America, on advice of each local employee
president, shall select the employee members. In nonorganized operations, the employee
committee shall be elected by the nonsalaried production and maintenance employees.
The review must be completed no later than six months after the producer presents a
proposal for expenditure of the funds to the committee. The funds held pursuant to this
section may be released only for workforce development and associated public facility
improvement, or for acquisition of plant and stationary mining equipment and facilities
for the producer or for research and development in Minnesota on new mining, or
taconite, iron, or steel production technology, but only if the producer provides a matching
expenditure to be used for the same purpose of at least 50 percent of the distribution
based on 14.7 cents per ton beginning with distributions in 2002. Effective for proposals
for expenditures of money from the fund beginning May 26, 2007, the commissioner
may not release the funds before the next scheduled meeting of the board. If the board
rejects a proposed expenditure, the funds must be deposited in the Taconite Environmental
Protection Fund under sections 298.222 to 298.225. If a producer uses money which has
been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile
equipment, or mining shovels, and the producer removes the piece of equipment from the
taconite tax relief area defined in section 273.134 within ten years from the date of receipt
of the money from the fund, a portion of the money granted from the fund must be repaid
to the taconite economic development fund. The portion of the money to be repaid is 100
percent of the grant if the equipment is removed from the taconite tax relief area within 12
months after receipt of the money from the fund, declining by ten percent for each of the
subsequent nine years during which the equipment remains within the taconite tax relief
area. If a taconite production facility is sold after operations at the facility had ceased, any
money remaining in the fund for the former producer may be released to the purchaser of
the facility on the terms otherwise applicable to the former producer under this section. If
a producer fails to provide matching funds for a proposed expenditure within six months
after the commissioner approves release of the funds, the funds are available for release to
another producer in proportion to the distribution provided and under the conditions of
this section. Any portion of the fund which is not released by the commissioner within
one year of its deposit in the fund shall be divided between the taconite environmental
protection fund created in section 298.223 and the Douglas J. Johnson economic protection
trust fund created in section 298.292 for placement in their respective special accounts.
Two-thirds of the unreleased funds shall be distributed to the taconite environmental
protection fund and one-third to the Douglas J. Johnson economic protection trust fund.

(b) Notwithstanding the requirements of paragraph (a), setting the amount of
distributions and the review process, an amount equal to ten cents per taxable ton of
production in 2007, for distribution in 2008 only, that would otherwise be distributed
under paragraph (a), may be used for a loan for the cost of deleted text beginconstruction ofdeleted text endnew text begin providing fornew text end
a biomass energy facility. This amount must be deducted from the distribution under
paragraph (a) for which a matching expenditure by the producer is not required. The
granting of the loan is subject to approval by the Iron Range Resources and Rehabilitation
Board; interest must be payable on the loan at the rate prescribed in section 298.2213,
subdivision
3. Repayments of the loan and interest must be deposited in the northeast
Minnesota economic development fund established in section 298.2213. If a loan is not
made under this paragraph by July 1, deleted text begin2009deleted text endnew text begin 2010new text end, the amount that had been made available
for the loan under this paragraph must be transferred to the northeast Minnesota economic
development fund. Money distributed in 2008 to the fund established under this section
that exceeds ten cents per ton is available to qualifying producers under paragraph (a)
on a pro rata basis.

deleted text begin If 2008 H.F. No. 1812 is enacted and includes a provision that amends this section
in a manner that is different from the amendment in this section, the amendment in this
section supersedes the amendment in 2008 H.F. No. 1812, notwithstanding section 645.26.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2008, section 298.24, subdivision 1, is amended to read:


Subdivision 1.

Imposed; calculation.

(a) For concentrate produced in 2001, 2002,
and 2003, there is imposed upon taconite and iron sulphides, and upon the mining and
quarrying thereof, and upon the production of iron ore concentrate therefrom, and upon
the concentrate so produced, a tax of $2.103 per gross ton of merchantable iron ore
concentrate produced therefrom. For concentrates produced in deleted text begin2005deleted text endnew text begin 2009new text end, the tax rate is
the same rate imposed for concentrates produced in deleted text begin2004deleted text endnew text begin 2008new text end. For concentrates produced
in 2009 and subsequent years, the tax is also imposed upon other iron-bearing material.

(b) For concentrates produced in deleted text begin2006deleted text endnew text begin 2010new text end and subsequent years, the tax rate shall
be equal to the preceding year's tax rate plus an amount equal to the preceding year's tax
rate multiplied by the percentage increase in the implicit price deflator from the fourth
quarter of the second preceding year to the fourth quarter of the preceding year. "Implicit
price deflator" means the implicit price deflator for the gross domestic product prepared by
the Bureau of Economic Analysis of the United States Department of Commerce.

(c) An additional tax is imposed equal to three cents per gross ton of merchantable
iron ore concentrate for each one percent that the iron content of the product exceeds 72
percent, when dried at 212 degrees Fahrenheit.

(d) The tax on taconite and iron sulphides shall be imposed on the average of the
production for the current year and the previous two years. The rate of the tax imposed
will be the current year's tax rate. This clause shall not apply in the case of the closing
of a taconite facility if the property taxes on the facility would be higher if this clause
and section 298.25 were not applicable. The tax on other iron-bearing material shall be
imposed on the current year production.

(e) If the tax or any part of the tax imposed by this subdivision is held to be
unconstitutional, a tax of $2.103 per gross ton of merchantable iron ore concentrate
produced shall be imposed.

(f) Consistent with the intent of this subdivision to impose a tax based upon the
weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
determine the weight of merchantable iron ore concentrate included in fluxed pellets by
subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic
flux additives included in the pellets from the weight of the pellets. For purposes of this
paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite,
olivine, or other basic flux additives are combined with merchantable iron ore concentrate.
No subtraction from the weight of the pellets shall be allowed for binders, mineral and
chemical additives other than basic flux additives, or moisture.

(g)(1) Notwithstanding any other provision of this subdivision, for the first two years
of a plant's commercial production of direct reduced ore from ore mined in this state, no
tax is imposed under this section. As used in this paragraph, "commercial production" is
production of more than 50,000 tons of direct reduced ore in the current year or in any
prior year, "noncommercial production" is production of 50,000 tons or less of direct
reduced ore in any year, and "direct reduced ore" is ore that results in a product that has an
iron content of at least 75 percent. For the third year of a plant's commercial production of
direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate
otherwise determined under this subdivision. For the fourth commercial production year,
the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth
commercial production year, the rate is 75 percent of the rate otherwise determined under
this subdivision; and for all subsequent commercial production years, the full rate is
imposed.

(2) Subject to clause (1), production of direct reduced ore in this state is subject to
the tax imposed by this section, but if that production is not produced by a producer of
taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron
sulfides, or other iron-bearing material, that is consumed in the production of direct
reduced iron in this state is not subject to the tax imposed by this section on taconite,
iron sulfides, or other iron-bearing material.

(3) Notwithstanding any other provision of this subdivision, no tax is imposed
on direct reduced ore under this section during the facility's noncommercial production
of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial
production of direct reduced ore is subject to the tax imposed by this section on taconite
and iron sulphides. Three-year average production of direct reduced ore does not
include production of direct reduced ore in any noncommercial year. Three-year average
production for a direct reduced ore facility that has noncommercial production is the
average of the commercial production of direct reduced ore for the current year and the
previous two commercial years.

(4) This paragraph applies only to plants for which all environmental permits have
been obtained and construction has begun before July 1, 2008.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2008, section 298.28, subdivision 2, is amended to read:


Subd. 2.

City or town where quarried or produced.

(a) deleted text begin4.5deleted text endnew text begin 6.5new text end cents per gross
ton of merchantable iron ore concentrate, hereinafter referred to as "taxable ton," must be
allocated to the city or town in the county in which the lands from which taconite was
mined or quarried were located or within which the concentrate was produced. If the
mining, quarrying, and concentration, or different steps in either thereof are carried on in
more than one taxing district, the commissioner shall apportion equitably the proceeds
of the part of the tax going to cities and towns among such subdivisions upon the basis
of attributing deleted text begin40deleted text endnew text begin 50new text end percent of the proceeds of the tax to the operation of mining or
quarrying the taconite, and the remainder to the concentrating plant and to the processes of
concentration, and with respect to each thereof giving due consideration to the relative
extent of such operations performed in each such taxing district. The commissioner's
order making such apportionment shall be subject to review by the Tax Court at the
instance of any of the interested taxing districts, in the same manner as other orders of
the commissioner.

(b) Four cents per taxable ton shall be allocated to cities and organized townships
affected by mining because their boundaries are within three miles of a taconite mine pit
that has been actively mined in at least one of the prior three years. If a city or town is
located near more than one mine meeting these criteria, the city or town is eligible to
receive aid calculated from only the mine producing the largest taxable tonnage. When
more than one municipality qualifies for aid based on one company's production, the aid
must be apportioned among the municipalities in proportion to their populations. Of the
amounts distributed under this paragraph to each municipality, one-half must be used for
infrastructure improvement projects, and one-half must be used for projects in which two
or more municipalities cooperate. Each municipality that receives a distribution under this
paragraph must report annually to the Iron Range Resources and Rehabilitation Board and
the commissioner of Iron Range resources and rehabilitation on the projects involving
cooperation with other municipalities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for production in 2009, for
distributions in 2010, and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2008, section 298.28, is amended by adding a subdivision
to read:


new text begin Subd. 9e. new text end

new text begin Taconite environmental fund; additional distribution. new text end

new text begin Beginning
with distributions in 2010, an amount equal to (i) the total taconite railroad distribution
paid in 2009 to counties, cities, and towns under section 298.28, subdivision 11, less (ii)
the equivalent of 2.0 cents per gross ton that is distributed to the cities and towns under
section 298.28, subdivision 2, for the current distribution year, must annually be paid
to the taconite environmental fund for use under section 298.223, as provided under
that subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for production in 2009, for
distributions in 2010, and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2008, section 298.28, subdivision 11, is amended to read:


Subd. 11.

Remainder.

(a) The proceeds of the tax imposed by section 298.24 which
remain after the distributions and payments in subdivisions 2 to 10a, as certified by the
commissioner of revenue, and paragraphs (b), (c), (d), and (e) have been made, together
with interest earned on all money distributed under this section prior to distribution, shall
be divided between the taconite environmental protection fund created in section 298.223
and the Douglas J. Johnson economic protection trust fund created in section 298.292 as
follows: Two-thirds to the taconite environmental protection fund and one-third to the
Douglas J. Johnson economic protection trust fund. The proceeds shall be placed in
the respective special accounts.

(b) deleted text beginThere shall be distributed to each city, town, and county the amount that it
received under section 294.26 in calendar year 1977; provided, however, that the amount
distributed in 1981 to the unorganized territory number 2 of Lake County and the town
of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be
distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake
County and the towns of Beaver Bay and Stony River based on the miles of track of Erie
Mining Company in each taxing district.
deleted text end

deleted text begin (c)deleted text end There shall be distributed to the Iron Range Resources and Rehabilitation Board
the amounts it received in 1977 under section 298.22. The amount distributed under
this paragraph shall be expended within or for the benefit of the taconite assistance area
defined in section 273.1341.

deleted text begin (d)deleted text endnew text begin (c)new text end There shall be distributed to each school district 62 percent of the amount
that it received under section 294.26 in calendar year 1977.

deleted text begin (e)deleted text endnew text begin (d)new text end In 2003 only, $100,000 must be distributed to a township located in a taconite
tax relief area as defined in section 273.134, paragraph (a), that received $119,259 of
homestead and agricultural credit aid and $182,014 in local government aid in 2001.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for production in 2009, for
distributions in 2010, and thereafter.
new text end

ARTICLE 13

MISCELLANEOUS

Section 1.

new text begin [17.1195] BOVINE TUBERCULOSIS TESTING GRANTS.
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) "Commissioner" means the commissioner of agriculture.
new text end

new text begin (c) "Corporate owner of cattle" means an owner of cattle subject to tax under section
290.06, subdivision 1, and also a shareholder of an S corporation under section 290.9725.
new text end

new text begin Subd. 2. new text end

new text begin Bovine tuberculosis testing grants. new text end

new text begin (a) The commissioner is authorized to
make grants to owners of cattle in Minnesota to offset a portion of the cost of tuberculosis
testing performed on the cattle. For corporate owners of cattle, the grant equals 25 percent
of the tuberculosis testing expenses incurred during the calendar year. For all other
owners, the grant equals 50 percent of tuberculosis testing expenses incurred during the
calendar year.
new text end

new text begin (b) The commissioner may specify a time and manner for cattle owners to apply
for grants under this section, and may request supporting documentation of actual testing
expenses. Applications received by January 31 relating to testing expenses incurred in
the previous calendar year are eligible for grants. The commissioner must issue grants by
March 1.
new text end

new text begin (c) If applications for grants exceed the amount available for the fiscal year, the
commissioner must proportionally adjust all grant amounts so that the amount awarded for
the year does not exceed the amount available.
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.

new text begin [17.1197] BOVINE TUBERCULOSIS GRANTS; SPLIT STATE STATUS.
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) "Commissioner" means the commissioner of agriculture.
new text end

new text begin (c) "Owner" means an individual or corporation, including a shareholder of an S
corporation under section 290.9725, who owned a herd of animals subject to a whole-herd
test for bovine tuberculosis in calendar years 2006 through 2008 and located in the
modified accredited zone established as part of Minnesota's split state status as approved
by the United States Department of Agriculture and effective October 10, 2008.
new text end

new text begin (e) "Animals" means cattle, bison, and goats.
new text end

new text begin Subd. 2. new text end

new text begin Bovine tuberculosis split state grants. new text end

new text begin (a) The commissioner is
authorized to make annual grants to owners to offset a portion of the cost of tuberculosis
testing performed on animals. The annual grant amount for each owner equals $25 per
animal multiplied by the largest number of animals tested as part of any whole-herd test
of the owner's animals occurring during the years 2006 through 2008 as reported by the
Board of Animal Health.
new text end

new text begin (b) The commissioner may specify a time and manner for owners to apply for grants
under this section, and may request supporting documentation of actual testing expenses.
new text end

new text begin (c) If applications for grants exceed the amount available for the fiscal year, the
commissioner must proportionally adjust all grant amounts so that the amount awarded for
the year does not exceed the amount available.
new text end

new text begin (d) The grants made under this subdivision shall be made annually after July 1
and before July 15, beginning in 2010, until terminated under this paragraph. The
commissioner's authority to make grants under this subdivision terminates in the year
following the calendar year in which the Board of Animal Health certifies that the state is
free of bovine tuberculosis.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2008, section 270C.12, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Duration. new text end

new text begin Notwithstanding the provisions of any statutes to the contrary,
including section 15.059, the coordinating committee as established by this section to
oversee and coordinate preparation of the microdata samples of income tax returns and
other information does not expire.
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. 4.

Minnesota Statutes 2008, section 270C.445, is amended to read:


270C.445 TAX PREPARATION SERVICES.

Subdivision 1.

Scope.

This section applies to a person who provides tax preparation
servicesdeleted text begin.deleted text endnew text begin, except:
new text end

new text begin (1) a person who provides tax preparation services for fewer than ten clients in a
calendar year;
new text end

new text begin (2) a person who provides tax preparation services only to immediate family
members. For the purposes of this section, "immediate family members" means a spouse,
parent, grandparent, child, or sibling;
new text end

new text begin (3) an employee who prepares a tax return for an employer's business;
new text end

new text begin (4) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of
the fiduciary estate, testator, trustor, grantor, or beneficiaries of them; and
new text end

new text begin (5) nonprofit organizations providing tax preparation services under the Internal
Revenue Service Volunteer Income Tax Assistance Program or Tax Counseling for the
Elderly Program.
new text end

Subd. 2.

Definitions.

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

(b) "Client" means an individual for whom a tax preparer performs or agrees to
perform tax preparation services.

(c) "Person" means an individual, corporation, partnership, limited liability
company, association, trustee, or other legal entity.

(d) "Refund anticipation loan" means a loannew text begin or any other extension of creditnew text end, whether
provided by the tax preparer or another entity such as a financial institution, in anticipation
of, and whose payment is secured by, a client's federal or state income tax refund or both.

(e) "Tax preparation services" means services provided for a fee or other
consideration to a client to:

(1) assist with preparing or filing state or federal individual income tax returns;

(2) assume final responsibility for completed work on an individual income tax
return on which preliminary work has been done by another; or

(3) deleted text beginoffer ordeleted text end facilitate the provision of refund anticipation loansnew text begin and refund
anticipation checks
new text end.

(f) "Tax preparer" or "preparer" means a person providing tax preparation services
subject to this section.

new text begin (g) "Advertise" means to solicit business through any means or medium.
new text end

new text begin (h) "Facilitate" means to individually or in conjunction or cooperation with another
person:
new text end

new text begin (1) accept an application for a refund anticipation loan;
new text end

new text begin (2) pay to a client the proceeds, through direct deposit, a negotiable instrument, or
any other means, of a refund anticipation loan; or
new text end

new text begin (3) offer, arrange, process, provide, or in any other manner act to allow the making
of, a refund anticipation loan.
new text end

new text begin (i) "Refund anticipation check" means a negotiable instrument provided to a client
by the tax preparer or another person, which is issued from the proceeds of a taxpayer's
federal or state income tax refund or both and represents the net of the refund minus the tax
preparation fee and any other fees. A refund anticipation check includes a refund transfer.
new text end

Subd. 3.

Standards of conduct.

No tax preparer shall:

(1) without good cause fail to promptly, diligently, and without unreasonable delay
complete a client's tax return;

(2) obtain the signature of a client to a tax return or authorizing document that
contains blank spaces to be filled in after it has been signed;

(3) fail to sign a client's tax return when payment for services rendered has been
made;

(4) fail or refuse to give a client a copy of any document requiring the client's
signature within a reasonable time after the client signs the document;

(5) fail to retain for at least four years a copy of individual income tax returns;

(6) fail to maintain a confidential relationship deleted text beginbetween themselves and theirdeleted text endnew text begin withnew text end
clients or former clients;

(7) fail to take commercially reasonable measures to safeguard a client's nonpublic
personal information;

(8) make, authorize, publish, disseminate, circulate, or cause to make, either directly
or indirectly, any false, deceptive, or misleading statement or representation relating to or
in connection with the offering or provision of tax preparation services;

(9) require a client to enter into a loan arrangement in order to complete a tax return;

(10) claim credits or deductions on a client's tax return for which the tax preparer
knows or reasonably should know the deleted text begintaxpayerdeleted text endnew text begin clientnew text end does not qualify;

(11) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
refund for tax preparation services;

(12) under any circumstances, withhold or fail to return to a client a document
provided by the client for use in preparing the client's tax returndeleted text begin.deleted text endnew text begin;
new text end

new text begin (13) establish an account in the preparer's name to receive a client's refund through
a direct deposit or any other instrument unless the client's name is also on the account,
except that a taxpayer may assign the portion of a refund representing the Minnesota
education credit available under section 290.0674 to a bank account without the client's
name, as provided under section 290.0679;
new text end

new text begin (14) fail to act in the best interests of the client;
new text end

new text begin (15) fail to safeguard and account for any money handled for the client;
new text end

new text begin (16) fail to disclose all material facts of which the preparer has knowledge which
might reasonably affect the client's rights and interests;
new text end

new text begin (17) violate any provision of section 332.37;
new text end

new text begin (18) include any of the following in any document provided or signed in connection
with the provision of tax preparation services:
new text end

new text begin (i) a hold harmless clause;
new text end

new text begin (ii) a confession of judgment or a power of attorney to confess judgment against the
client or appear as the client in any judicial proceeding;
new text end

new text begin (iii) a waiver of the right to a jury trial, if applicable, in any action brought by or
against a debtor;
new text end

new text begin (iv) an assignment of or an order for payment of wages or other compensation for
services;
new text end

new text begin (v) a provision in which the client agrees not to assert any claim or defense otherwise
available;
new text end

new text begin (vi) a waiver of any provision of this section or a release of any obligation required
to be performed on the part of the tax preparer; or
new text end

new text begin (vii) a waiver of the right to injunctive, declaratory, or other equitable relief or
relief on a class basis; or
new text end

new text begin (19) if making, providing, or facilitating a refund anticipation loan, fail to provide all
disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a
form that may be retained by the client.
new text end

new text begin Subd. 3a. new text end

new text begin Written agreements required; refund anticipation loans and checks.
new text end

new text begin (a) All agreements to make, provide, or facilitate a refund anticipation loan or refund
anticipation check must be in writing. No agreement may include a provision that
directly or indirectly arranges for payment of or deduction from any portion of the refund
anticipation loan or refund anticipation check for check cashing, credit insurance, attorney
fees, or the collection of any debt owed to any party for any other good or service other
than a debt owed to the facilitator for the repayment of a refund anticipation loan and tax
preparation fees associated with the refund anticipation loan or refund anticipation check.
new text end

new text begin (b) If a written agreement contains a mandatory arbitration clause, the tax preparer
must provide a separate written notice to the client that:
new text end

new text begin (1) arbitration is the exclusive means of dispute resolution for any dispute about the
written agreement;
new text end

new text begin (2) the client has the right to affirmatively opt out of the arbitration clause within 30
days of entering into an agreement; and
new text end

new text begin (3) the client is not bound to arbitration if the claim or dispute involves a violation of
this section or the client invokes the remedies provided in subdivision 7.
new text end

new text begin The tax preparer must advise the client, both orally and in writing, of the process by
which the client may exercise the right to opt out of the mandatory arbitration clause.
new text end

Subd. 4.

Required disclosuresdeleted text begin; refund anticipation loansdeleted text end.

(a) deleted text beginIfdeleted text end new text beginBefore or at the
same time
new text enda tax preparer offers to make or facilitate a refund anticipation loan to the
client, the preparer must make the disclosures in deleted text beginthis subdivision. The disclosures must
be made before or at the same time the preparer offers the refund anticipation loan to the
client.
deleted text endnew text begin subdivision 4a. Before or at the same time a tax preparer offers or facilitates a
refund anticipation check or refund transfer, the tax preparer must make the disclosures
in subdivision 4b.
new text end

new text begin (b) The disclosures must be provided to a client in a written notice on a single sheet
of paper, separate from any other document or writing.
new text end

new text begin (c) All required statements must be in capital and small font type fonts, in a
minimum of 14-point type, with at least a double space between each statement.
new text end

new text begin (d) The notice must be signed and dated by the tax preparer and the client.
new text end

new text begin (e) All required disclosures, notices, and statements must be provided in the client's
primary language, if the tax preparer advertises in that language.
new text end

deleted text begin (b) The tax preparer must provide to a client a written notice on a single sheet of
paper, separate from any other document or writing, containing:
deleted text end

deleted text begin (1) a legend, centered at the top on the single sheet of paper, in bold, capital letters,
and in 28-point type stating "NOTICE";
deleted text end

deleted text begin (2) the following verbatim statements:
deleted text end

deleted text begin (i) "This is a loan. The annual percentage rate (APR), based on the estimated
payment period, is (fill in the estimated APR)."
deleted text end

deleted text begin (ii) "Your refund will be used to repay the loan. As a result, the amount of your
refund will be reduced by (fill in appropriate dollar amount) for fees, interest, and other
charges."
deleted text end

deleted text begin (iii) "You can get your refund in about two weeks if you file your return electronically
and have the Internal Revenue Service send your refund to your own bank account." and
deleted text end

deleted text begin (3) if the client is subject to additional interest when a refund is delayed, the
following verbatim statement must also be included in the notice: "If you choose to take
this loan and your refund is delayed, you may have to pay additional interest."
deleted text end

deleted text begin (c) All required statements must be in capital and small font type fonts, in a
minimum of 14-point type, with at least a double space between each line in the statement
and four spaces between each statement.
deleted text end

deleted text begin (d) The notice must be signed and dated by the tax preparer and the client.
deleted text end

new text begin Subd. 4a. new text end

new text begin Refund anticipation loan disclosures. new text end

new text begin The disclosure required under
subdivision 4 for a refund anticipation loan must contain:
new text end

new text begin (1) a legend, centered at the top on the single sheet of paper, in bold, capital letters,
and in 28-point type stating "NOTICE";
new text end

new text begin (2) the following verbatim statements:
new text end

new text begin (i) "This is a loan. This is not your refund. The annual percentage rate (APR), based
on the estimated payment period, is (fill in the estimated APR).";
new text end

new text begin (ii) "Your refund will be used to repay the loan. As a result, the amount of your
refund will be reduced by (fill in appropriate dollar amount) for fees, interest, and other
charges.";
new text end

new text begin (iii) "You have the right to cancel this transaction by returning the loan check or the
amount of the loan in cash within one business day after you get the loan."; and
new text end

new text begin (iv) "You can get your refund in about two weeks if you file your return electronically
and have the Internal Revenue Service send your refund to your own bank account."; and
new text end

new text begin (3) if the client is subject to additional interest when a refund is delayed, the
following verbatim statement must also be included in the notice: "If you choose to take
this loan and your refund is delayed, you may have to pay."
new text end

new text begin Subd. 4b. new text end

new text begin Refund anticipation check disclosures. new text end

new text begin (a) The disclosure required
under subdivision 4 for a refund anticipation check must contain:
new text end

new text begin (1) a legend, centered at the top on the single sheet of paper, in bold, capital letters,
and in 28-point type stating "NOTICE";
new text end

new text begin (2) the following verbatim statements:
new text end

new text begin (i) "You do not have to purchase a refund anticipation check (RAC) to get your tax
refund.";
new text end

new text begin (ii) "Generally the IRS can direct deposit your income tax refund to your personal
bank account within 8 to 15 days after the IRS accepts your tax return for processing.";
new text end

new text begin (iii) "If you choose to purchase a RAC, your tax return funds will generally be
made available to you within 8 to 15 days.";
new text end

new text begin (iv) "A RAC is not a loan.";
new text end

new text begin (v) "The cost of the RAC is $ (fill in dollar amount).";
new text end

new text begin (vi) "You can either pay for your RAC now or you can have it withheld from your
refund."; and
new text end

new text begin (vii) "The cost of your tax return is not any more or any less if you purchase a RAC."
new text end

new text begin (b) A tax preparer offering a refund anticipation check that uses a different product
name, including but not limited to refund transfer, must substitute the product name for
"RAC" in all the statements required under this subdivision.
new text end

Subd. 5.

Itemized bill required.

A tax preparer must provide an itemized statement
of the charges for services, at least separately stating the charges for:

(1) return preparation; deleted text beginand
deleted text end

(2) providing or facilitating a refund anticipation loandeleted text begin.deleted text endnew text begin; andnew text end

new text begin (3) each fee associated with the provision of a refund anticipation check.
new text end

Subd. 5a.

Nongame wildlife checkoff.

A tax preparer must give written notice of
the option to contribute to the nongame wildlife management account in section 290.431
to corporate clients that file an income tax return and to individual clients who file an
income tax return or property tax refund claim form. This notification must be included
with information sent to the client at the same time as the preliminary worksheets or other
documents used in preparing the client's return and must include a line for displaying
contributions.

new text begin Subd. 5b. new text end

new text begin Right to rescind refund anticipation loan. new text end

new text begin (a) A client may rescind a
refund anticipation loan on or before the close of business on the next day of business
following execution of the loan agreement or receipt of the proceeds of the loan by
providing written notification to the tax preparer of the rescission, and either returning the
original check issued for the loan, or tendering the amount of the loan to the tax preparer.
new text end

new text begin (b) The tax preparer may charge a fee for rescinding a refund anticipation loan
only if an account has been established at a financial institution to electronically receive
the refund and the financial institution has charged a fee to establish the account. The
allowable fee the tax preparer may charge the client rescinding the refund anticipation
loan may not exceed the fee charged to the tax preparer by the financial institution to
establish the account.
new text end

Subd. 6.

Enforcement; penalties.

The commissioner may impose an administrative
penalty of not more than $1,000 per violation of subdivision 3,new text begin 3a,new text end 4, deleted text beginordeleted text end 5new text begin, or 5b, provided
that a penalty may not be imposed for any conduct that is also subject to the tax return
preparer penalties in section 289A.60, subdivision 13
new text end. 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 subdivision is subject to the contested case procedure
under chapter 14. The commissioner shall collect the penalty in the same manner as the
income tax. Penalties imposed under this subdivision are public data.

Subd. 6a.

Exchange of data; State Board of Accountancy.

The State Board of
Accountancy shall refer to the commissioner complaints it receives about tax preparers
who are not subject to the jurisdiction of the State Board of Accountancy and who are
alleged to have violated the provisions of subdivisions 3 deleted text begintodeleted text endnew text begin, 3a, 4, 4a, 4b,new text end 5new text begin,new text endnew text begin and 5bnew text end.

Subd. 6b.

Exchange of data; Lawyers Board of Professional Responsibility.

The
Lawyers Board of Professional Responsibility may refer to the commissioner complaints
it receives about tax preparers who are not subject to its jurisdiction and who are alleged
to have violated the provisions of subdivisions 3 deleted text begintodeleted text endnew text begin, 3a, 4, 4a, 4b,new text end 5new text begin,new text endnew text begin and 5bnew text end.

Subd. 6c.

Exchange of data; commissioner.

The commissioner shall refer
complaints about tax preparers who are alleged to have violated the provisions of
subdivisions 3 deleted text begintodeleted text endnew text begin, 3a, 4, 4a, 4b,new text end 5new text begin,new text endnew text begin and 5bnew text end to:

(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction; and

(2) the Lawyers Board of Professional Responsibility, if the tax preparer is under
its jurisdiction.

Subd. 6d.

Data private.

Information exchanged on individuals under subdivisions
6a to 6c are private data under section 13.02, subdivision 12, until such time as a penalty
is imposed as provided in section 326A.08 or by the Lawyers Board of Professional
Responsibility.

Subd. 7.

Enforcement; civil actions.

(a) Any violation of this section is an unfair,
deceptive, and unlawful trade practice within the meaning of section 8.31.new text begin An action taken
under section 8.31 is in the public interest.
new text end

(b) A client may bring a civil action seeking redress for a violation of this section in
the conciliation or the district court of the county in which unlawful action is alleged to
have been committed or where the respondent resides or has a principal place of business.

(c) A deleted text begindistrictdeleted text end court finding for the plaintiff must awardnew text begin:
new text end

new text begin (1)new text end actual damagesdeleted text begin, includingdeleted text endnew text begin;
new text end

new text begin (2)new text end incidental and consequential damagesdeleted text begin,deleted text endnew text begin;
new text end

new text begin (3) statutory damages of twice the sum of: (i) the tax preparation fees; and (ii) if the
plaintiff violated subdivision 3a, 4, or 5b all interest and fees for a refund anticipation loan;
new text end

new text begin (4)new text end reasonable attorney feesdeleted text begin,deleted text endnew text begin;
new text end

new text begin (5)new text end court costsdeleted text begin,deleted text endnew text begin;new text end and

new text begin (6)new text end any other equitable relief as the court considers appropriate.

Subd. 8.

new text beginLimited new text endexemptionsdeleted text begin; enforcement provisionsdeleted text end.

The provisions of this
section, except for deleted text beginsubdivisiondeleted text endnew text begin subdivisions 3a,new text end 4new text begin, and 5bnew text end, do not apply to:

(1) an attorney admitted to practice under section 481.01;

(2) a certified public accountant or other person who is subject to the jurisdiction of
the State Board of Accountancy;

(3) an enrolled agent who has passed the special enrollment examination
administered by the Internal Revenue Service;new text begin or
new text end

deleted text begin (4) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of
the fiduciary estate, the testator, trustor, grantor, or beneficiaries of them;
deleted text end

deleted text begin (5) a tax preparer who provides tax preparation services for fewer than six clients
in a calendar year;
deleted text end

deleted text begin (6) tax preparation services to a spouse, parent, grandparent, child, or sibling of
the tax preparer; and
deleted text end

deleted text begin (7) the preparation by an employee of the tax return of the employee's employer
deleted text end

new text begin (4) anyone who provides, or assists in providing, tax preparation services within
the scope of duties as an employee or supervisor of a person who is exempt under this
subdivision
new text end.

Sec. 5.

Minnesota Statutes 2008, section 270C.56, subdivision 3, is amended to read:


Subd. 3.

Procedure for assessmentnew text begin; claims for refundsnew text end.

new text begin(a) new text endThe commissioner
may assess liability for the taxes described in subdivision 1 against a person liable
under this section. The assessment may be based upon information available to the
commissioner. It must be made within the prescribed period of limitations for assessing
the underlying tax, or within one year after the date of an order assessing underlying tax,
whichever period expires later. An order assessing personal liability under this section is
reviewable under section 270C.35 and is appealable to Tax Court.

new text begin (b) If the time for appealing the order has expired and a payment is made by or
collected from the person assessed on the order in excess of the amount lawfully due
from that person of any portion of the liability shown on the order, a claim for refund
may be made by that person within 120 days after any payment of the liability if the
payment is within 3-1/2 years after the date the order was issued. Claims for refund under
this paragraph are limited to the amount paid during the 120-day period. Any amounts
collected under paragraph (c) after a claim for refund is filed in order to satisfy the unpaid
balance of the assessment that is the subject of the claim shall be returned if the claim is
allowed. There is no claim for refund available under this paragraph if the assessment has
previously been the subject of an administrative or Tax Court appeal, or a denied claim
for refund. The taxpayer may contest denial of the refund as provided in the procedures
governing claims for refunds under section 289A.50, subdivision 7.
new text end

new text begin (c) new text endIf a person has been assessed under this section for an amount for a given period
and the time for appeal has expirednew text begin, regardless of whether an action contesting denial of a
claim for refund has been filed under paragraph (b),
new text end or there has been a final determination
that the person is liable, collection action is not stayed pursuant to section 270C.33,
subdivision 5
, for new text beginthat assessment or for new text endsubsequent assessments of additional amounts for
the same person for the same period and tax type.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders issued after the date of
final enactment.
new text end

Sec. 6.

Minnesota Statutes 2008, section 275.07, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Recertification due to unallotment. new text end

new text begin If a local government's December
aid or credit payments under sections 477A.011 to 477A.014 and section 273.1384 are
reduced due to unallotment under section 16A.152, the local government may recertify
its levy under subdivision 1, by January 15 of the year in which the levy will be paid.
The local government must report the recertified amount to the county auditor within
two business days of January 15 or the levy will remain at the amount certified under
subdivision 1. Notwithstanding subdivision 4, the county auditor shall report to the
commissioner of revenue any recertified levies under this subdivision by January 30
of the year in which the levy will be paid.
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.

Minnesota Statutes 2008, section 275.70, subdivision 5, is amended to read:


Subd. 5.

Special levies.

"Special levies" means those portions of ad valorem taxes
levied by a local governmental unit for the following purposes or in the following manner:

(1) to pay the costs of the principal and interest on bonded indebtedness or to
reimburse for the amount of liquor store revenues used to pay the principal and interest
due on municipal liquor store bonds in the year preceding the year for which the levy
limit is calculated;

(2) to pay the costs of principal and interest on certificates of indebtedness issued for
any corporate purpose except for the following:

(i) tax anticipation or aid anticipation certificates of indebtedness;

(ii) certificates of indebtedness issued under sections 298.28 and 298.282;

(iii) certificates of indebtedness used to fund current expenses or to pay the costs of
extraordinary expenditures that result from a public emergency; or

(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or
an insufficiency in other revenue sources;

(3) to provide for the bonded indebtedness portion of payments made to another
political subdivision of the state of Minnesota;

(4) to fund payments made to the Minnesota State Armory Building Commission
under section 193.145, subdivision 2, to retire the principal and interest on armory
construction bonds;

(5) property taxes approved by voters which are levied against the referendum
market value as provided under section 275.61;

(6) to fund matching requirements needed to qualify for federal or state grants or
programs to the extent that either (i) the matching requirement exceeds the matching
requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
exist prior to 2002;

(7) to pay the expenses reasonably and necessarily incurred in preparing for or
repairing the effects of natural disaster including the occurrence or threat of widespread
or severe damage, injury, or loss of life or property resulting from natural causes, in
accordance with standards formulated by the Emergency Services Division of the state
Department of Public Safety, as allowed by the commissioner of revenue under section
275.74, subdivision 2;

(8) pay amounts required to correct an error in the levy certified to the county
auditor by a city or county in a levy year, but only to the extent that when added to the
preceding year's levy it is not in excess of an applicable statutory, special law or charter
limitation, or the limitation imposed on the governmental subdivision by sections 275.70
to 275.74 in the preceding levy year;

(9) to pay an abatement under section 469.1815;

(10) to pay any costs attributable to increases in the employer contribution rates
under chapter 353, or locally administered pension plans, that are effective after June
30, 2001;

(11) to pay the operating or maintenance costs of a county jail as authorized in
section 641.01 or 641.262, or of a correctional facility as defined in section 241.021,
subdivision 1
, paragraph (f), to the extent that the county can demonstrate to the
commissioner of revenue that the amount has been included in the county budget as
a direct result of a rule, minimum requirement, minimum standard, or directive of the
Department of Corrections, or to pay the operating or maintenance costs of a regional jail
as authorized in section 641.262. For purposes of this clause, a district court order is
not a rule, minimum requirement, minimum standard, or directive of the Department of
Corrections. If the county utilizes this special levy, except to pay operating or maintenance
costs of a new regional jail facility under sections 641.262 to 641.264 which will not
replace an existing jail facility, any amount levied by the county in the previous levy year
for the purposes specified under this clause and included in the county's previous year's
levy limitation computed under section 275.71, shall be deducted from the levy limit
base under section 275.71, subdivision 2, when determining the county's current year
levy limitation. The county shall provide the necessary information to the commissioner
of revenue for making this determination;

(12) to pay for operation of a lake improvement district, as authorized under section
103B.555. If the county utilizes this special levy, any amount levied by the county in the
previous levy year for the purposes specified under this clause and included in the county's
previous year's levy limitation computed under section 275.71 shall be deducted from
the levy limit base under section 275.71, subdivision 2, when determining the county's
current year levy limitation. The county shall provide the necessary information to the
commissioner of revenue for making this determination;

(13) to repay a state or federal loan used to fund the direct or indirect required
spending by the local government due to a state or federal transportation project or other
state or federal capital project. This authority may only be used if the project is not a
local government initiative;

(14) to pay for court administration costs as required under section 273.1398,
subdivision 4b
, less the (i) county's share of transferred fines and fees collected by the
district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes
levied to pay for these costs in the year in which the court financing is transferred to the
state, the amount under this clause is limited to the amount of aid the county is certified to
receive under section 273.1398, subdivision 4a;

(15) to fund a police or firefighters relief association as required under section 69.77
to the extent that the required amount exceeds the amount levied for this purpose in 2001;

(16) for purposes of a storm sewer improvement district under section 444.20;

(17) to pay for the maintenance and support of a city or county society for the
prevention of cruelty to animals under section 343.11new text begin, but not to exceed in any year
$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
recent federal census, whichever is greater
new text end. If the city or county uses this special levy, any
amount levied by the city or county in the previous levy year for the purposes specified
in this clause and included in the city's or county's previous year's levy limit computed
under section 275.71, must be deducted from the levy limit base under section 275.71,
subdivision 2
, in determining the city's or county's current year levy limit;

(18) for counties, to pay for the increase in their share of health and human service
costs caused by reductions in federal health and human services grants effective after
September 30, 2007;

(19) for a city, for the costs reasonably and necessarily incurred for securing,
maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
the commissioner of revenue under section 275.74, subdivision 2. A city must have either
(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
the city or in a zip code area of the city that is at least 50 percent higher than the average
foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2,
to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
number of foreclosures, as indicated by sheriff sales records, divided by the number of
households in the city in 2007;

(20) for a city, for the unreimbursed costs of redeployed traffic control agents and
lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
to the Federal Highway Administration;

(21) to pay costs attributable to wages and benefits for sheriff, police, and fire
personnel. If a local governmental unit did not use this special levy in the previous year its
levy limit base under section 275.71 shall be reduced by the amount equal to the amount it
levied for the purposes specified in this clause in the previous year; deleted text beginand
deleted text end

(22) an amount equal to any reductions in the certified aids or credits payable
under sections 477A.011 to 477A.014, and section 273.1384, due to unallotment under
section 16A.152new text begin in any year, reductions in aids under chapter 477A, that are enacted by
the legislature in the year in which the aid is paid, and reductions to credits under section
273.1384 enacted by the legislature in any year
new text end. The amount of the levy allowed under
this clause is equal to the amount unallotted new text beginor reduced new text endin the calendar year in which the
tax is levied unless the deleted text beginunallotmentdeleted text end amount is not known by September 1 of the levy year,
new text begin and the local government has not adjusted its levy under section 275.065, subdivision 6,
or section 275.07, subdivision 6,
new text endin which case the deleted text beginunallotmentdeleted text end amount may be levied in
the following yeardeleted text begin.deleted text endnew text begin;
new text end

new text begin (23) to pay for the difference between one-half of the costs of confining sex offenders
undergoing the civil commitment process and any state payments for this purpose pursuant
to section 253B.185, subdivision 5; and
new text end

new text begin (24) for a county to pay the costs of the first year of maintaining and operating a new
facility or new expansion, either of which contains courts, corrections, dispatch, criminal
investigation labs, or other public safety facilities and for which all or a portion of the
funding for the site acquisition, building design, site preparation, construction, and related
equipment was issued or authorized prior to the imposition of levy limits in 2008. The
levy limit base shall then be increased by an amount equal to the new facility's first full
year's operating costs as described in this clause.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies certified in calendar year
2009 and thereafter, payable in 2010 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2008, section 275.71, subdivision 4, is amended to read:


Subd. 4.

Adjusted levy limit base.

For taxes levied in deleted text begin2008 throughdeleted text end new text begin2009 new text enddeleted text begin2010deleted text end,
the adjusted levy limit base is equal to the levy limit base computed under subdivision 2
or section 275.72, multiplied by:

(1) one plus the lesser of 3.9 percent or the percentage growth in the implicit price
deflatornew text begin, but not less than two percentnew text end;

(2) one plus a percentage equal to 50 percent of the percentage increase in the number
of households, if any, for the most recent 12-month period for which data is available; and

(3) one plus a percentage equal to 50 percent of the percentage increase in the
taxable market value of the jurisdiction due to new construction of class 3 property, as
defined in section 273.13, subdivision 4, except for state-assessed utility and railroad
property, for the most recent year for which data is available.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2008, section 287.08, is amended to read:


287.08 TAX, HOW PAYABLE; RECEIPTS.

(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of
any county in this state in which the real property or some part is located at or before
the time of filing the mortgage for record. The treasurer shall endorse receipt on the
mortgage and the receipt is conclusive proof that the tax has been paid in the amount
stated and authorizes any county recorder or registrar of titles to record the mortgage. Its
form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the
mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from
registration tax." In either case the receipt must be signed by the treasurer. In case the
treasurer is unable to determine whether a claim of exemption should be allowed, the tax
must be paid as in the case of a taxable mortgage. For documents submitted electronically,
the endorsements and tax amount shall be affixed electronically and no signature by the
treasurer will be required. The actual payment method must be arranged in advance
between the submitter and the receiving county.

(b) The county treasurer may refund in whole or in part any mortgage registry tax
overpayment if a written application by the taxpayer is submitted to the county treasurer
within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
of the application, the taxpayer may bring an action in Tax Court in the county in which
the tax was paid at any time after the expiration of six months from the time that the
application was submitted. A denial of refund may be appealed within 60 days from
the date of the denial by bringing an action in Tax Court in the county in which the tax
was paid. The action is commenced by the serving of a petition for relief on the county
treasurer, and by filing a copy with the court. The county attorney shall defend the action.
The county treasurer shall notify the treasurer of each county that has or would receive a
portion of the tax as paid.

(c) If the county treasurer determines a refund should be paid, or if a refund is
ordered by the court, the county treasurer of each county that actually received a portion
of the tax shall immediately pay a proportionate share of three percent of the refund
using any available county funds. The county treasurer of each county that received, or
would have received, a portion of the tax shall also pay their county's proportionate share
of the remaining 97 percent of the court-ordered refund on or before the 20th day of the
following month using solely the mortgage registry tax funds that would be paid to the
commissioner of revenue on that date under section 287.12. If the funds on hand under
this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the
county treasurer of the county in which the action was brought shall file a claim with the
commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of
the refund, and shall pay over the remaining portion upon receipt of a warrant from the
state issued pursuant to the claim.

(d) When any mortgage covers real property located in more than one county in this
state the total tax must be paid to the treasurer of the county where the mortgage is first
presented for recording, and the payment must be receipted as provided in paragraph (a).
deleted text begin If the principal debt or obligation secured by such a multiple county mortgage exceeds
$1,000,000, the nonstate portion of the tax must be divided and paid over by the county
treasurer receiving it, on or before the 20th day of each month after receipt, to the county
or counties entitled in the ratio that the market value of the real property covered by the
mortgage in each county bears to the market value of all the real property in this state
described in the mortgage. In making the division and payment the county treasurer shall
send a statement giving the description of the real property described in the mortgage and
the market value of the part located in each county. For this purpose, the treasurer of any
county may require the treasurer of any other county to certify to the former the market
valuation of any tract of real property in any mortgage.
deleted text end

(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The
mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the
mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor,
the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the
amount of the tax collected for that purpose and the mortgagor is relieved of any further
obligation to pay the tax as to the amount collected by the mortgagee for this purpose.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2008, section 475.51, subdivision 4, is amended to read:


Subd. 4.

Net debt.

"Net debt" means the amount remaining after deducting from its
gross debt the amount of current revenues which are applicable within the current fiscal
year to the payment of any debt and the aggregate of the principal of the following:

(1) Obligations issued for improvements which are payable wholly or partly from the
proceeds of special assessments levied upon property specially benefited thereby, including
those which are general obligations of the municipality issuing them, if the municipality is
entitled to reimbursement in whole or in part from the proceeds of the special assessments.

(2) Warrants or orders having no definite or fixed maturity.

(3) Obligations payable wholly from the income from revenue producing
conveniences.

(4) Obligations issued to create or maintain a permanent improvement revolving
fund.

(5) Obligations issued for the acquisition, and betterment of public waterworks
systems, and public lighting, heating or power systems, and of any combination thereof or
for any other public convenience from which a revenue is or may be derived.

(6) Debt service loans and capital loans made to a school district under the provisions
of sections 126C.68 and 126C.69.

(7) Amount of all money and the face value of all securities held as a debt service
fund for the extinguishment of obligations other than those deductible under this
subdivision.

(8) Obligations to repay loans made under section 216C.37.

(9) Obligations to repay loans made from money received from litigation or
settlement of alleged violations of federal petroleum pricing regulations.

(10) Obligations issued to pay pension fund deleted text beginor other postemployment benefitdeleted text end
liabilities under section 475.52, subdivision 6, or any charter authority.

(11) Obligations issued to pay judgments against the municipality under section
475.52, subdivision 6, or any charter authority.

new text begin (12) Obligations issued by a school district to pay other postemployment benefits.
new text end

deleted text begin (12)deleted text endnew text begin (13)new text end All other obligations which under the provisions of law authorizing their
issuance are not to be included in computing the net debt of the municipality.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for obligations sold after August
1, 2009.
new text end

Sec. 11.

Minnesota Statutes 2008, section 475.52, subdivision 6, is amended to read:


Subd. 6.

Certain purposes.

Any municipality may issue bonds for paying
judgments against it; for refunding outstanding bonds; for funding floating indebtedness;
deleted text begin for funding actuarial liabilities to pay postemployment benefits to employees or officers
after their termination of service;
deleted text end or for funding all or part of the municipality's current
and future unfunded liability for a pension or retirement fund or plan referred to in section
356.20, subdivision 2, as those liabilities are most recently computed pursuant to sections
356.215 and 356.216. The board of trustees or directors of a pension fund or relief
association referred to in section 69.77 or chapter 422A must consent and must be a party
to any contract made under this section with respect to the fund held by it for the benefit of
and in trust for its members. new text beginA school district may issue bonds to pay postemployment
benefits to employees or officers after their termination of service.
new text end For purposes of this
section, the term "postemployment benefits" means benefits giving rise to a liability under
Statement No. 45 of the Governmental Accounting Standards Board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for obligations sold after August
1, 2009.
new text end

Sec. 12.

Minnesota Statutes 2008, section 475.58, subdivision 1, is amended to read:


Subdivision 1.

Approval by electors; exceptions.

Obligations authorized by law or
charter may be issued by any municipality upon obtaining the approval of a majority of
the electors voting on the question of issuing the obligations, but an election shall not be
required to authorize obligations issued:

(1) to pay any unpaid judgment against the municipality;

(2) for refunding obligations;

(3) for an improvement or improvement program, which obligation is payable wholly
or partly from the proceeds of special assessments levied upon property specially benefited
by the improvement or by an improvement within the improvement program, or from tax
increments, as defined in section 469.174, subdivision 25, including obligations which are
the general obligations of the municipality, if the municipality is entitled to reimbursement
in whole or in part from the proceeds of such special assessments or tax increments and
not less than 20 percent of the cost of the improvement or the improvement program is to
be assessed against benefited property or is to be paid from the proceeds of federal grant
funds or a combination thereof, or is estimated to be received from tax increments;

(4) payable wholly from the income of revenue producing conveniences;

(5) under the provisions of a home rule charter which permits the issuance of
obligations of the municipality without election;

(6) under the provisions of a law which permits the issuance of obligations of a
municipality without an election;

(7) to fund pension or retirement fund deleted text beginor postemployment benefitdeleted text end liabilities pursuant
to section 475.52, subdivision 6;

(8) under a capital improvement plan under section 373.40; and

(9) under sections 469.1813 to 469.1815 (property tax abatement authority bonds), if
the proceeds of the bonds are not used for a purpose prohibited under section 469.176,
subdivision 4g
, paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for obligations sold after August
1, 2009.
new text end

Sec. 13.

new text begin [475.755] EMERGENCY DEBT CERTIFICATES.
new text end

new text begin (a) If at any time during a fiscal year the receipts of a local government are
reasonably expected to be reduced below the amount provided in the local government's
budget when the final property tax levy to be collected during the fiscal year was certified
and the receipts are insufficient to meet the expenses incurred or to be incurred during the
fiscal year, the governing body of the local government may authorize and sell certificates
of indebtedness to mature within two years or less from the end of the fiscal year in which
the certificates are issued. The maximum principal amount of the certificates that it may
issue in a fiscal year is limited to the expected reduction in receipts plus the cost of
issuance. The certificates may be issued in the manner and on the terms the governing
body determines by resolution.
new text end

new text begin (b) The governing body of the local government shall levy taxes for the payment of
principal and interest on the certificates in accordance with section 475.61.
new text end

new text begin (c) The certificates are not to be included in the net debt of the issuing local
government.
new text end

new text begin (d) To the extent that a local government issues certificates under this section to fund
an unallotment or other reduction in its state aid, the local government may not use a
special levy for the aid reduction under section 275.70, subdivision 5, clause (22), or a
similar or successor provision. This provision does not affect the status of the levy under
section 475.61 to pay the certificates as a levy that is not subject to levy limits.
new text end

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

new text begin (1) "Local government" means a statutory or home rule charter city, a town, or
a county.
new text end

new text begin (2) "Receipts" includes the following amounts scheduled to be received by the
local government for the fiscal year from:
new text end

new text begin (i) taxes;
new text end

new text begin (ii) aid payments previously certified by the state to be paid to the local government;
new text end

new text begin (iii) state reimbursement payments for property tax credits; and
new text end

new text begin (iv) any other source.
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. 14. new text beginBUDGET RESERVE.
new text end

new text begin In fiscal year 2010, the commissioner of finance shall transfer $250,000,000 to the
budget reserve account in the general fund. The commissioner shall make this transfer
from general fund revenues resulting from legislation enacted in the 2009 legislative
session. The amount necessary for this purpose is appropriated from the general fund.
new text end

Sec. 15. new text beginAPPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Bovine tuberculosis testing grants. new text end

new text begin $360,000 in fiscal year
2010 and $360,000 in fiscal year 2011 are appropriated from the general fund to the
commissioner of agriculture to make bovine tuberculosis testing grants as provided in
Minnesota Statutes, section 17.1195. Of this amount, the commissioner may use up to five
percent for administrative expenses related to the grant program.
new text end

new text begin Subd. 2. new text end

new text begin Bovine tuberculosis; split state status grants. new text end

new text begin $400,000 in fiscal year
2010 and $400,000 in fiscal year 2011 are appropriated from the general fund to the
commissioner of agriculture to make bovine tuberculosis split state status grants as
provided in Minnesota Statutes, section 17.1197. Of this amount, the commissioner may
use up to five percent for administrative expenses related to the grant program.
new text end

new text begin Subd. 3. new text end

new text begin Basic sliding fee child care. new text end

new text begin $5,000,000 in fiscal year 2010 and $5,000,000
in fiscal year 2011 are appropriated from the general fund to the commissioner of human
services for basic sliding fee child care under Minnesota Statutes, section 119B.03. This
appropriation is added to base level funding and is in addition to any other appropriation
for the same purpose. Notwithstanding any other law to the contrary, this appropriation
may only be used to fund child care assistance.
new text end