Minnesota Legislature
SF 5
1st Engrossment - 91st Legislature (2019 - 2020) Posted on 04/30/2019 09:17am
Current Version - 1st Engrossment
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 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 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19
6.20 6.21
6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 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
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
10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 11.1 11.2 11.3
11.4 11.5 11.6 11.7 11.8
11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16
11.17
11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31
12.1 12.2
12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15
12.16 12.17
12.18 12.19 12.20 12.21 12.22 12.23
12.24 12.25
12.26 12.27 12.28 12.29 12.30 12.31
13.1 13.2 13.3 13.4 13.5
13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14
13.15 13.16
13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28
13.29 13.30
14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24
14.25 14.26
14.27 14.28 14.29 14.30 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23
15.24 15.25
15.26 15.27 15.28 15.29 15.30
16.1 16.2
16.3 16.4 16.5 16.6 16.7
16.8 16.9
16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19
16.20 16.21
16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31
17.1 17.2
17.3 17.4 17.5 17.6 17.7
17.8 17.9
17.10 17.11 17.12 17.13 17.14 17.15
17.16 17.17
17.18 17.19 17.20 17.21 17.22
17.23 17.24
17.25 17.26 17.27 17.28 17.29
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
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
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 20.34 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 22.1 22.2 22.3 22.4 22.5 22.6 22.7
22.8 22.9
22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19
22.20 22.21
22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 23.1 23.2 23.3 23.4 23.5 23.6
23.7 23.8
23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23
23.24 23.25
23.26 23.27 23.28 23.29 23.30 23.31 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 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16
25.17 25.18
25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8
26.9 26.10
26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18
26.19 26.20
26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 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 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 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21
30.22 30.23 30.24
30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34 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 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 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
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 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26
38.27 38.28
39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26
39.27 39.28
39.29 39.30 39.31
39.32 39.33
40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24
40.25 40.26
40.27 40.28 40.29 40.30 40.31 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24
42.25 42.26 42.27
42.28 42.29 42.30 42.31 42.32 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26
43.27 43.28
44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32
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 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 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34 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 52.1 52.2
52.3 52.4
52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8
53.9 53.10
53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28
53.29 53.30
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 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23
55.24 55.25 55.26 55.27
55.28 55.29 55.30 55.31 55.32 56.1 56.2
56.3 56.4
56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13
56.14 56.15
56.16 56.17 56.18 56.19 56.20 56.21
56.22 56.23
56.24 56.25 56.26 56.27 56.28 56.29 56.30
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 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26
58.27 58.28
58.29 58.30 58.31 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17
60.18 60.19
60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10
63.11 63.12
63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30
64.31 64.32
65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14
65.15 65.16
65.17 65.18 65.19 65.20 65.21
65.22 65.23
65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 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 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 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 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 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 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33 75.34 75.35 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 76.32 76.33 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 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27
78.28 78.29
78.30 78.31 78.32 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21
79.22 79.23
79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 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
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
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 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 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16
86.17
86.18 86.19 86.20 86.21 86.22 86.23
86.24 86.25
86.26 86.27 86.28 86.29 86.30 86.31 87.1 87.2 87.3 87.4
87.5 87.6
87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17
87.18
87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 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 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
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 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
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
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 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 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8
95.9 95.10
95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21
95.22 95.23
95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15
96.16 96.17
96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 97.34 98.1 98.2 98.3 98.4 98.5 98.6 98.7
98.8
98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16
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
105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33 107.34 107.35 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14
112.15
112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 112.32 112.33 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24
114.25 114.26
114.27 114.28 114.29 114.30 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22
115.23 115.24
115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 115.33 115.34 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9
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
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
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
118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10
119.11
119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20
120.21
120.22 120.23 120.24 120.25 120.26 120.27 120.28 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21
121.22 121.23
121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 121.33 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 122.35 122.36 123.1 123.2 123.3 123.4 123.5
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
124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 125.33 125.34 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 126.34 126.35 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11
127.12 127.13 127.14 127.15
127.16 127.17 127.18 127.19
127.20 127.21 127.22
127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 128.1 128.2 128.3
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
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
130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19
130.20 130.21 130.22
130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 130.33 131.1 131.2
131.3 131.4 131.5
131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15
131.16 131.17 131.18
131.19 131.20
131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 131.33 132.1 132.2
132.3 132.4
132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 133.1 133.2 133.3 133.4
133.5
133.6 133.7
133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22
133.23
133.24 133.25 133.26 133.27 133.28 134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29 135.30 135.31 136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15
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
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
137.25 137.26 137.27 137.28 137.29 137.30 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9
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
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
140.1 140.2 140.3 140.4 140.5 140.6 140.7
140.8
140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 141.1 141.2 141.3
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
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
142.24 142.25 142.26 142.27 142.28 142.29 143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15 143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26
143.27 143.28 143.29
144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10 144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31
144.32 144.33
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
145.29 145.30 145.31 146.1 146.2 146.3 146.4 146.5 146.6 146.7 146.8 146.9 146.10 146.11
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
146.28 146.29 146.30 146.31 146.32 147.1 147.2 147.3 147.4 147.5 147.6 147.7 147.8 147.9 147.10 147.11 147.12 147.13 147.14 147.15 147.16 147.17 147.18 147.19
147.20 147.21 147.22
147.23 147.24 147.25 147.26 147.27 147.28 147.29 147.30 147.31 147.32 148.1 148.2
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
149.1 149.2 149.3
149.4 149.5 149.6 149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31 149.32 149.33 150.1 150.2 150.3 150.4 150.5
150.6 150.7 150.8
150.9 150.10 150.11 150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25 150.26 150.27 150.28 150.29 150.30 150.31 150.32 150.33 151.1 151.2 151.3 151.4 151.5 151.6 151.7 151.8 151.9 151.10 151.11
151.12 151.13 151.14
151.15 151.16 151.17 151.18 151.19 151.20 151.21 151.22 151.23 151.24 151.25 151.26 151.27 151.28 151.29 151.30 151.31 152.1 152.2 152.3 152.4 152.5 152.6 152.7 152.8 152.9 152.10 152.11 152.12 152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22 152.23 152.24
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
153.30 153.31 153.32
154.1 154.2 154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29 154.30 154.31 154.32 155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8 155.9 155.10
155.11 155.12 155.13
155.14 155.15 155.16 155.17 155.18 155.19 155.20 155.21 155.22 155.23 155.24 155.25 155.26 155.27 155.28 155.29 155.30 155.31 155.32 155.33 155.34 156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17
156.18 156.19 156.20
156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 156.32 156.33 157.1 157.2 157.3 157.4 157.5 157.6 157.7 157.8 157.9 157.10 157.11 157.12 157.13 157.14 157.15 157.16 157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25
157.26 157.27 157.28
157.29 157.30 157.31 157.32 157.33 158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8 158.9 158.10 158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31 158.32
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
159.15 159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 159.32 159.33 160.1 160.2
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
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
162.6 162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24 162.25 162.26 162.27 162.28 162.29 162.30 162.31 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19
163.20 163.21 163.22
163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31 163.32 163.33 163.34 164.1 164.2 164.3 164.4 164.5 164.6 164.7
164.8 164.9 164.10
164.11 164.12 164.13 164.14 164.15 164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 164.32 164.33 165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11 165.12
165.13 165.14 165.15
165.16 165.17 165.18 165.19 165.20 165.21 165.22 165.23 165.24 165.25 165.26 165.27 165.28 165.29 165.30 165.31 165.32 165.33 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16
166.17 166.18 166.19
166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30 166.31 166.32 167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19 167.20
167.21 167.22 167.23
167.24 167.25 167.26 167.27 167.28 167.29 167.30 167.31 167.32 167.33 167.34 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25
168.26 168.27 168.28
168.29 168.30 168.31 168.32 168.33 168.34 169.1 169.2 169.3 169.4 169.5 169.6 169.7 169.8 169.9 169.10 169.11 169.12 169.13 169.14 169.15 169.16 169.17 169.18 169.19 169.20 169.21 169.22 169.23 169.24 169.25 169.26 169.27 169.28 169.29 169.30 169.31 170.1 170.2 170.3 170.4 170.5 170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13
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
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
173.1 173.2 173.3 173.4 173.5 173.6 173.7
173.8 173.9 173.10
173.11 173.12 173.13 173.14 173.15 173.16 173.17
173.18 173.19 173.20
173.21 173.22 173.23 173.24 173.25 173.26 173.27 173.28 173.29
173.30 173.31 174.1 174.2
174.3 174.4 174.5 174.6 174.7 174.8 174.9 174.10 174.11 174.12 174.13 174.14 174.15 174.16 174.17
174.18 174.19 174.20
174.21 174.22 174.23 174.24 174.25 174.26 174.27 174.28 174.29 174.30 174.31 174.32 175.1 175.2 175.3 175.4 175.5 175.6
175.7 175.8 175.9
175.10 175.11 175.12 175.13 175.14 175.15 175.16 175.17
175.18 175.19 175.20
175.21 175.22
175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30 175.31 176.1 176.2
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
176.28 176.29 176.30 176.31 177.1 177.2 177.3 177.4 177.5 177.6 177.7
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
177.27 177.28 177.29 177.30 177.31 178.1 178.2 178.3 178.4 178.5
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
179.1 179.2
179.3 179.4 179.5 179.6 179.7 179.8 179.9 179.10 179.11 179.12 179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23 179.24 179.25 179.26 179.27 179.28 179.29 179.30 179.31 179.32 179.33 180.1 180.2 180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13 180.14 180.15 180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 181.1 181.2 181.3
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
182.1 182.2 182.3 182.4 182.5 182.6 182.7 182.8 182.9 182.10 182.11 182.12 182.13 182.14 182.15 182.16 182.17
182.18 182.19
182.20 182.21 182.22 182.23 182.24 182.25 182.26 182.27 182.28 182.29 182.30 182.31 182.32 183.1 183.2 183.3 183.4 183.5 183.6
183.7 183.8
183.9 183.10 183.11 183.12 183.13 183.14 183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22 183.23 183.24 183.25 183.26 183.27 183.28
183.29
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
184.22 184.23 184.24 184.25 184.26 184.27 184.28 184.29 184.30 184.31 185.1 185.2 185.3 185.4 185.5 185.6 185.7 185.8 185.9 185.10 185.11 185.12 185.13 185.14 185.15 185.16 185.17 185.18 185.19 185.20 185.21 185.22
185.23 185.24
185.25 185.26 185.27 185.28 185.29 185.30 185.31 185.32 186.1 186.2 186.3 186.4 186.5 186.6 186.7 186.8 186.9 186.10 186.11 186.12 186.13 186.14 186.15 186.16 186.17 186.18 186.19 186.20 186.21 186.22 186.23 186.24 186.25 186.26 186.27 186.28 186.29 186.30
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
187.16 187.17 187.18 187.19 187.20 187.21 187.22 187.23 187.24 187.25 187.26 187.27 187.28 187.29 187.30 187.31 187.32 187.33 187.34 187.35 188.1 188.2 188.3 188.4 188.5 188.6 188.7 188.8 188.9 188.10 188.11 188.12 188.13 188.14 188.15 188.16 188.17 188.18 188.19 188.20 188.21 188.22
188.23
188.24 188.25 188.26 188.27 188.28 188.29 188.30 188.31 188.32
189.1 189.2 189.3 189.4 189.5 189.6 189.7 189.8 189.9 189.10 189.11 189.12 189.13 189.14 189.15 189.16 189.17 189.18 189.19 189.20 189.21 189.22 189.23 189.24 189.25 189.26 189.27 189.28 189.29 189.30 189.31 189.32 189.33 189.34 190.1 190.2 190.3 190.4 190.5 190.6 190.7 190.8 190.9 190.10 190.11 190.12 190.13 190.14 190.15 190.16 190.17 190.18 190.19 190.20 190.21 190.22 190.23 190.24 190.25 190.26 190.27 190.28 190.29 190.30 190.31
190.32 190.33
191.1 191.2 191.3 191.4 191.5 191.6 191.7 191.8 191.9 191.10 191.11 191.12 191.13 191.14 191.15 191.16 191.17 191.18 191.19 191.20 191.21 191.22 191.23 191.24 191.25 191.26 191.27 191.28 191.29 191.30 191.31 191.32 191.33 191.34
192.1 192.2
192.3 192.4 192.5 192.6 192.7 192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19 192.20 192.21 192.22 192.23 192.24 192.25 192.26 192.27 192.28 192.29 192.30 192.31 192.32 193.1 193.2 193.3 193.4 193.5 193.6 193.7
193.8
193.9 193.10 193.11 193.12 193.13 193.14 193.15 193.16 193.17 193.18 193.19 193.20 193.21 193.22 193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 194.1 194.2 194.3 194.4 194.5 194.6 194.7 194.8 194.9 194.10 194.11 194.12 194.13 194.14 194.15 194.16 194.17 194.18 194.19 194.20 194.21 194.22 194.23 194.24 194.25 194.26 194.27 194.28 194.29 194.30 194.31 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9
195.10
195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22 195.23 195.24 195.25 195.26 195.27 195.28 195.29 195.30 195.31 196.1 196.2 196.3 196.4 196.5 196.6 196.7 196.8 196.9 196.10 196.11 196.12 196.13 196.14 196.15 196.16 196.17 196.18 196.19 196.20 196.21 196.22 196.23 196.24 196.25 196.26 196.27 196.28 196.29 196.30 196.31 196.32 196.33
197.1
197.2 197.3 197.4 197.5
197.6
197.7 197.8
197.9 197.10 197.11 197.12 197.13 197.14 197.15 197.16 197.17 197.18 197.19 197.20 197.21 197.22 197.23 197.24 197.25 197.26 197.27 197.28 197.29 197.30 197.31 198.1 198.2 198.3 198.4 198.5 198.6 198.7 198.8 198.9 198.10 198.11 198.12 198.13 198.14 198.15 198.16 198.17 198.18 198.19 198.20 198.21 198.22 198.23 198.24 198.25 198.26 198.27 198.28 198.29 198.30 198.31 198.32 198.33 199.1 199.2 199.3 199.4 199.5 199.6 199.7 199.8 199.9 199.10 199.11 199.12 199.13 199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22 199.23 199.24
199.25 199.26
199.27 199.28 199.29 199.30 199.31 199.32 199.33 200.1 200.2 200.3 200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14 200.15 200.16 200.17 200.18 200.19 200.20
200.21 200.22
200.23 200.24 200.25 200.26 200.27 200.28 200.29 200.30 200.31 201.1 201.2 201.3 201.4 201.5 201.6 201.7 201.8 201.9 201.10
201.11 201.12
201.13 201.14 201.15 201.16 201.17 201.18 201.19 201.20 201.21 201.22 201.23
201.24 201.25
201.26 201.27 201.28 201.29 201.30 201.31 202.1 202.2 202.3 202.4 202.5 202.6 202.7 202.8 202.9 202.10 202.11 202.12 202.13 202.14 202.15 202.16 202.17 202.18 202.19 202.20 202.21 202.22 202.23 202.24 202.25 202.26 202.27 202.28 202.29 202.30 202.31 202.32 203.1 203.2 203.3 203.4 203.5 203.6 203.7 203.8 203.9 203.10 203.11 203.12 203.13 203.14 203.15 203.16 203.17 203.18 203.19 203.20 203.21 203.22 203.23 203.24 203.25 203.26 203.27 203.28
203.29 203.30
204.1 204.2 204.3 204.4 204.5 204.6 204.7 204.8 204.9 204.10 204.11 204.12 204.13 204.14 204.15
204.16 204.17
204.18 204.19 204.20 204.21 204.22 204.23 204.24 204.25 204.26 204.27 204.28 204.29 204.30 204.31 204.32 205.1 205.2 205.3 205.4 205.5 205.6 205.7 205.8 205.9 205.10 205.11 205.12 205.13 205.14 205.15 205.16 205.17 205.18 205.19 205.20 205.21 205.22 205.23 205.24 205.25 205.26 205.27 205.28 205.29 205.30 205.31 206.1 206.2 206.3 206.4 206.5 206.6 206.7 206.8 206.9 206.10 206.11 206.12 206.13 206.14 206.15 206.16 206.17 206.18 206.19 206.20 206.21 206.22 206.23 206.24 206.25 206.26 206.27 206.28 206.29 206.30 206.31 206.32 207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9 207.10 207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27 207.28 207.29 207.30 207.31 207.32 207.33 208.1 208.2 208.3 208.4 208.5 208.6 208.7 208.8 208.9 208.10 208.11 208.12 208.13 208.14 208.15 208.16
208.17 208.18
208.19 208.20 208.21 208.22 208.23 208.24 208.25 208.26 208.27 208.28 208.29 208.30 208.31 208.32 209.1 209.2 209.3 209.4 209.5 209.6 209.7 209.8 209.9 209.10 209.11 209.12 209.13 209.14 209.15 209.16 209.17 209.18 209.19
209.20 209.21
209.22 209.23 209.24 209.25 209.26 209.27 209.28
209.29 209.30
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
211.26 211.27 211.28 211.29 211.30 212.1 212.2 212.3 212.4 212.5 212.6 212.7 212.8 212.9 212.10 212.11 212.12 212.13 212.14 212.15 212.16 212.17 212.18 212.19 212.20 212.21 212.22 212.23 212.24 212.25 212.26 212.27 212.28 212.29 212.30 212.31 212.32 212.33 212.34 213.1 213.2 213.3 213.4 213.5 213.6 213.7 213.8 213.9 213.10 213.11
213.12 213.13
213.14 213.15
213.16 213.17
213.18 213.19 213.20
213.21 213.22 213.23 213.24 213.25 213.26 213.27 213.28 213.29 213.30 213.31 213.32 214.1 214.2 214.3 214.4 214.5 214.6 214.7 214.8 214.9 214.10 214.11 214.12 214.13 214.14 214.15 214.16 214.17 214.18
214.19 214.20
214.21 214.22 214.23 214.24 214.25 214.26 214.27 214.28 214.29 214.30 214.31 214.32 215.1 215.2 215.3 215.4 215.5 215.6 215.7 215.8 215.9 215.10 215.11 215.12 215.13 215.14 215.15 215.16 215.17 215.18 215.19 215.20 215.21 215.22 215.23 215.24
215.25
215.26 215.27 215.28 215.29 215.30 215.31 215.32 216.1 216.2 216.3 216.4 216.5 216.6 216.7 216.8 216.9 216.10 216.11 216.12 216.13 216.14 216.15 216.16 216.17 216.18 216.19 216.20 216.21 216.22 216.23 216.24 216.25 216.26 216.27 216.28 216.29 216.30 216.31 217.1 217.2 217.3 217.4 217.5 217.6 217.7 217.8 217.9 217.10 217.11 217.12
217.13 217.14 217.15
217.16 217.17 217.18 217.19 217.20 217.21 217.22 217.23 217.24 217.25 217.26 217.27 217.28 217.29 217.30 217.31 217.32 217.33 218.1 218.2 218.3 218.4 218.5 218.6
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
218.32
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
220.1 220.2
220.3 220.4 220.5 220.6 220.7 220.8
220.9
220.10 220.11 220.12 220.13 220.14 220.15 220.16 220.17 220.18 220.19 220.20 220.21 220.22 220.23 220.24 220.25 220.26 220.27 220.28 220.29 220.30 220.31 220.32 221.1 221.2 221.3 221.4 221.5 221.6 221.7 221.8 221.9 221.10 221.11 221.12 221.13 221.14 221.15 221.16 221.17 221.18 221.19 221.20 221.21 221.22 221.23 221.24 221.25 221.26 221.27 221.28 221.29 221.30 221.31 221.32 221.33 222.1 222.2 222.3 222.4 222.5 222.6 222.7 222.8 222.9 222.10 222.11 222.12 222.13 222.14 222.15 222.16 222.17 222.18 222.19 222.20 222.21 222.22 222.23 222.24 222.25 222.26 222.27 222.28 222.29 222.30 222.31 222.32 222.33
223.1
223.2 223.3 223.4 223.5 223.6 223.7 223.8 223.9 223.10 223.11 223.12 223.13 223.14 223.15 223.16 223.17 223.18 223.19 223.20 223.21 223.22 223.23 223.24 223.25 223.26 223.27 223.28 223.29 223.30 223.31 223.32 223.33 224.1 224.2 224.3 224.4 224.5
224.6
224.7 224.8 224.9 224.10 224.11 224.12 224.13 224.14 224.15 224.16 224.17 224.18 224.19 224.20 224.21 224.22 224.23 224.24 224.25 224.26 224.27 224.28 224.29 224.30 224.31 225.1 225.2 225.3 225.4 225.5
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
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
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
227.29 227.30 228.1 228.2 228.3 228.4 228.5 228.6 228.7 228.8 228.9 228.10 228.11 228.12 228.13 228.14 228.15 228.16 228.17 228.18 228.19 228.20 228.21 228.22 228.23 228.24 228.25 228.26 228.27 228.28 228.29 228.30 228.31 228.32 228.33 229.1 229.2 229.3 229.4 229.5 229.6 229.7 229.8 229.9 229.10
229.11
229.12 229.13 229.14 229.15
229.16
229.17 229.18 229.19 229.20 229.21 229.22 229.23 229.24 229.25 229.26 229.27 229.28 229.29 230.1 230.2 230.3 230.4 230.5 230.6 230.7 230.8 230.9 230.10 230.11 230.12 230.13 230.14 230.15 230.16 230.17 230.18 230.19 230.20 230.21 230.22 230.23 230.24 230.25 230.26 230.27 230.28 230.29 230.30 230.31 230.32 231.1 231.2 231.3 231.4 231.5 231.6
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
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
233.1 233.2 233.3 233.4 233.5 233.6 233.7 233.8 233.9 233.10 233.11 233.12 233.13 233.14 233.15 233.16 233.17 233.18 233.19 233.20 233.21 233.22 233.23 233.24 233.25 233.26 233.27 233.28 233.29 233.30 233.31 234.1 234.2 234.3 234.4 234.5 234.6 234.7 234.8 234.9 234.10 234.11 234.12 234.13 234.14 234.15 234.16 234.17 234.18 234.19 234.20 234.21 234.22 234.23 234.24 234.25 234.26 234.27 234.28 234.29 234.30 234.31 234.32 234.33 235.1 235.2 235.3 235.4 235.5 235.6 235.7 235.8 235.9 235.10 235.11 235.12 235.13 235.14 235.15 235.16 235.17 235.18 235.19 235.20 235.21 235.22 235.23 235.24 235.25 235.26 235.27 235.28 235.29 235.30 235.31
235.32
236.1 236.2 236.3 236.4 236.5 236.6 236.7 236.8 236.9 236.10 236.11
236.12
236.13 236.14 236.15 236.16 236.17 236.18 236.19 236.20 236.21 236.22 236.23 236.24 236.25 236.26 236.27 236.28 236.29 236.30 236.31 236.32 236.33 236.34 237.1 237.2 237.3 237.4 237.5 237.6 237.7 237.8 237.9 237.10 237.11 237.12 237.13 237.14 237.15 237.16 237.17 237.18 237.19 237.20 237.21 237.22 237.23 237.24 237.25 237.26 237.27 237.28 237.29 237.30 237.31 237.32 238.1 238.2 238.3 238.4 238.5 238.6 238.7 238.8 238.9 238.10 238.11 238.12 238.13 238.14 238.15 238.16 238.17 238.18 238.19 238.20 238.21 238.22 238.23
238.24
238.25 238.26
238.27 238.28 238.29 238.30 238.31 238.32 239.1 239.2 239.3 239.4 239.5 239.6 239.7
239.8
239.9 239.10 239.11 239.12 239.13 239.14 239.15 239.16 239.17 239.18 239.19 239.20 239.21 239.22 239.23 239.24 239.25 239.26 239.27 239.28 239.29 239.30 239.31 239.32 239.33 240.1 240.2 240.3 240.4 240.5 240.6 240.7 240.8 240.9 240.10 240.11 240.12 240.13 240.14 240.15 240.16 240.17 240.18 240.19 240.20 240.21 240.22 240.23 240.24 240.25 240.26 240.27 240.28 240.29 240.30
240.31 240.32
241.1 241.2
241.3 241.4 241.5 241.6 241.7 241.8 241.9 241.10 241.11 241.12 241.13 241.14 241.15 241.16 241.17 241.18 241.19 241.20 241.21 241.22 241.23 241.24 241.25 241.26 241.27 241.28 241.29 241.30 241.31 241.32 241.33 242.1 242.2 242.3 242.4 242.5
242.6
242.7 242.8 242.9 242.10 242.11 242.12 242.13 242.14 242.15 242.16
242.17
242.18 242.19 242.20 242.21 242.22 242.23 242.24 242.25 242.26
242.27
243.1 243.2 243.3 243.4 243.5 243.6 243.7 243.8 243.9 243.10 243.11 243.12 243.13 243.14 243.15 243.16 243.17 243.18 243.19 243.20 243.21 243.22 243.23 243.24
243.25
243.26 243.27 243.28 243.29 243.30 243.31 243.32 243.33 244.1 244.2 244.3 244.4 244.5 244.6 244.7 244.8 244.9 244.10 244.11 244.12 244.13 244.14 244.15 244.16 244.17 244.18 244.19 244.20
244.21
244.22 244.23 244.24 244.25 244.26 244.27 244.28 244.29 244.30 244.31 244.32 245.1 245.2 245.3 245.4 245.5 245.6 245.7 245.8 245.9 245.10 245.11 245.12 245.13 245.14 245.15 245.16 245.17 245.18 245.19 245.20 245.21
245.22
245.23 245.24 245.25 245.26 245.27 245.28 245.29 245.30 245.31 245.32 245.33 245.34 246.1 246.2
246.3
246.4 246.5 246.6 246.7 246.8 246.9 246.10 246.11 246.12 246.13 246.14 246.15 246.16 246.17 246.18 246.19
246.20
246.21 246.22 246.23 246.24 246.25 246.26 246.27 246.28 246.29 246.30 246.31 247.1 247.2 247.3 247.4 247.5 247.6
247.7
247.8 247.9 247.10 247.11 247.12 247.13 247.14 247.15 247.16 247.17 247.18
247.19
247.20 247.21 247.22 247.23 247.24 247.25 247.26 247.27 247.28 247.29
247.30
248.1 248.2 248.3 248.4 248.5 248.6 248.7 248.8 248.9 248.10
248.11
248.12 248.13 248.14 248.15 248.16 248.17 248.18 248.19 248.20 248.21 248.22 248.23 248.24 248.25 248.26 248.27 248.28
248.29
249.1 249.2 249.3 249.4 249.5 249.6 249.7 249.8 249.9 249.10 249.11 249.12 249.13 249.14 249.15 249.16 249.17 249.18 249.19
249.20
249.21 249.22 249.23 249.24 249.25 249.26 249.27 249.28
249.29
249.30 249.31 249.32 250.1 250.2 250.3 250.4 250.5 250.6 250.7 250.8 250.9 250.10 250.11 250.12 250.13 250.14 250.15 250.16 250.17 250.18
250.19
250.20 250.21 250.22 250.23 250.24 250.25 250.26 250.27 250.28 250.29
250.30
251.1 251.2 251.3 251.4 251.5 251.6 251.7 251.8 251.9 251.10 251.11 251.12 251.13 251.14 251.15 251.16 251.17 251.18 251.19 251.20 251.21 251.22 251.23 251.24 251.25 251.26 251.27 251.28 251.29 251.30 251.31 251.32 251.33 251.34 252.1 252.2 252.3 252.4 252.5 252.6 252.7 252.8 252.9 252.10 252.11 252.12 252.13 252.14 252.15 252.16 252.17 252.18 252.19 252.20 252.21 252.22 252.23 252.24 252.25 252.26 252.27 252.28 252.29 252.30 252.31 252.32 252.33 252.34 253.1 253.2 253.3 253.4 253.5 253.6
253.7
253.8 253.9
253.10
253.11 253.12
253.13 253.14 253.15 253.16 253.17 253.18 253.19 253.20 253.21 253.22 253.23 253.24 253.25 253.26 253.27 253.28 253.29 253.30 254.1 254.2 254.3 254.4 254.5 254.6 254.7 254.8 254.9 254.10 254.11 254.12 254.13 254.14 254.15 254.16 254.17 254.18 254.19 254.20 254.21 254.22
254.23
254.24 254.25 254.26 254.27 254.28 254.29 254.30 254.31 255.1 255.2 255.3 255.4 255.5 255.6 255.7 255.8 255.9 255.10 255.11 255.12 255.13 255.14 255.15 255.16 255.17 255.18 255.19 255.20 255.21 255.22 255.23 255.24 255.25 255.26 255.27 255.28 255.29 255.30 256.1 256.2 256.3 256.4 256.5 256.6 256.7 256.8 256.9 256.10 256.11 256.12 256.13 256.14 256.15 256.16 256.17 256.18 256.19 256.20 256.21 256.22 256.23 256.24 256.25 256.26 256.27 256.28 256.29 256.30 256.31 256.32 257.1 257.2 257.3 257.4 257.5 257.6 257.7 257.8 257.9 257.10 257.11 257.12 257.13 257.14 257.15 257.16 257.17 257.18
257.19
257.20 257.21 257.22 257.23 257.24 257.25 257.26 257.27 257.28 257.29 257.30 257.31 257.32 257.33 258.1 258.2 258.3 258.4 258.5 258.6 258.7 258.8 258.9 258.10 258.11 258.12 258.13 258.14 258.15 258.16 258.17 258.18 258.19 258.20 258.21 258.22 258.23 258.24 258.25 258.26 258.27 258.28 258.29 258.30 258.31 258.32 258.33 259.1 259.2 259.3 259.4 259.5 259.6 259.7 259.8 259.9 259.10 259.11 259.12 259.13 259.14 259.15 259.16 259.17 259.18 259.19 259.20 259.21 259.22 259.23 259.24 259.25 259.26 259.27 259.28 259.29 259.30 259.31 259.32 259.33 259.34 260.1 260.2 260.3 260.4 260.5 260.6 260.7 260.8 260.9 260.10 260.11 260.12 260.13 260.14 260.15 260.16 260.17 260.18 260.19
260.20
260.21 260.22 260.23 260.24 260.25 260.26 260.27 260.28 260.29 260.30 260.31 260.32 260.33 261.1 261.2 261.3 261.4 261.5 261.6 261.7 261.8 261.9 261.10 261.11 261.12 261.13 261.14 261.15 261.16 261.17 261.18 261.19 261.20 261.21 261.22 261.23 261.24
261.25
261.26 261.27 261.28 261.29 261.30 261.31 261.32 262.1 262.2
262.3
262.4 262.5 262.6 262.7 262.8
262.9
262.10 262.11 262.12 262.13
262.14
262.15 262.16
262.17 262.18 262.19 262.20 262.21 262.22 262.23 262.24 262.25 262.26 262.27 262.28 262.29 263.1 263.2 263.3 263.4 263.5 263.6 263.7 263.8 263.9 263.10 263.11 263.12 263.13 263.14 263.15 263.16 263.17 263.18 263.19 263.20 263.21 263.22 263.23 263.24 263.25 263.26 263.27 263.28 263.29 264.1 264.2 264.3 264.4 264.5 264.6 264.7
264.8
264.9 264.10 264.11 264.12 264.13 264.14 264.15 264.16 264.17 264.18 264.19 264.20 264.21 264.22 264.23 264.24 264.25 264.26 264.27 264.28 264.29 264.30 264.31 265.1 265.2 265.3 265.4 265.5 265.6 265.7 265.8 265.9 265.10 265.11 265.12 265.13 265.14 265.15 265.16 265.17 265.18
265.19
265.20 265.21 265.22 265.23 265.24 265.25 265.26 265.27 265.28 265.29 265.30 265.31 265.32 265.33 266.1 266.2 266.3 266.4 266.5 266.6 266.7 266.8 266.9 266.10 266.11 266.12 266.13 266.14 266.15 266.16 266.17 266.18 266.19 266.20 266.21 266.22 266.23 266.24 266.25 266.26 266.27 266.28 266.29 266.30 266.31 266.32 267.1 267.2 267.3 267.4 267.5 267.6 267.7 267.8 267.9 267.10 267.11 267.12 267.13 267.14 267.15 267.16 267.17 267.18 267.19 267.20 267.21 267.22 267.23 267.24 267.25 267.26 267.27 267.28 267.29 267.30 267.31 267.32 267.33 267.34 267.35 267.36 267.37 268.1 268.2 268.3 268.4 268.5 268.6 268.7 268.8 268.9 268.10 268.11 268.12 268.13 268.14 268.15 268.16 268.17 268.18 268.19 268.20 268.21 268.22 268.23 268.24 268.25 268.26 268.27 268.28 268.29 268.30 268.31 268.32 268.33 268.34 268.35 269.1 269.2 269.3 269.4 269.5 269.6 269.7 269.8
269.9
269.10 269.11 269.12 269.13 269.14 269.15 269.16 269.17 269.18 269.19 269.20 269.21 269.22 269.23 269.24 269.25 269.26 269.27 269.28 269.29 269.30 269.31 269.32 270.1 270.2 270.3 270.4 270.5 270.6 270.7 270.8 270.9 270.10 270.11 270.12 270.13 270.14 270.15
270.16
270.17 270.18
270.19 270.20 270.21 270.22 270.23 270.24 270.25 270.26 270.27 270.28 270.29 270.30 270.31 271.1 271.2 271.3 271.4 271.5 271.6 271.7 271.8 271.9 271.10
271.11
271.12 271.13 271.14 271.15 271.16 271.17 271.18 271.19 271.20 271.21 271.22 271.23 271.24 271.25 271.26 271.27 271.28 271.29 271.30 271.31 272.1 272.2 272.3 272.4 272.5 272.6 272.7 272.8 272.9 272.10 272.11 272.12 272.13 272.14 272.15 272.16 272.17 272.18 272.19 272.20 272.21 272.22 272.23 272.24 272.25 272.26 272.27 272.28 272.29 272.30 272.31 272.32 273.1 273.2 273.3 273.4 273.5 273.6 273.7 273.8 273.9 273.10 273.11 273.12 273.13 273.14 273.15 273.16 273.17 273.18 273.19 273.20 273.21 273.22 273.23 273.24 273.25 273.26 273.27 273.28 273.29 273.30 273.31 273.32 273.33 274.1 274.2 274.3 274.4 274.5 274.6 274.7 274.8 274.9 274.10 274.11 274.12 274.13 274.14 274.15 274.16 274.17 274.18 274.19 274.20 274.21 274.22 274.23 274.24 274.25 274.26 274.27 274.28 274.29 274.30 274.31 274.32 274.33 275.1 275.2 275.3 275.4 275.5 275.6 275.7 275.8 275.9
275.10
275.11 275.12 275.13 275.14 275.15 275.16 275.17 275.18 275.19 275.20 275.21 275.22 275.23 275.24 275.25 275.26 275.27 275.28 275.29 275.30 275.31 276.1 276.2 276.3 276.4 276.5 276.6 276.7 276.8 276.9 276.10 276.11 276.12 276.13
276.14
276.15 276.16 276.17 276.18
276.19 276.20
276.21 276.22
276.23 276.24 276.25 276.26 276.27 276.28 276.29
276.30
277.1 277.2 277.3 277.4 277.5 277.6 277.7 277.8 277.9 277.10 277.11 277.12 277.13 277.14 277.15 277.16 277.17 277.18 277.19 277.20 277.21 277.22 277.23 277.24 277.25 277.26 277.27 277.28 277.29 277.30 277.31 277.32 277.33
278.1
278.2 278.3 278.4 278.5 278.6 278.7 278.8 278.9 278.10
278.11
278.12 278.13 278.14 278.15 278.16 278.17
278.18
278.19 278.20 278.21 278.22 278.23 278.24 278.25 278.26 278.27 278.28 278.29 278.30 278.31 278.32 279.1 279.2 279.3 279.4 279.5 279.6 279.7 279.8 279.9 279.10 279.11 279.12 279.13 279.14 279.15 279.16 279.17 279.18 279.19 279.20 279.21 279.22 279.23
279.24
279.25 279.26 279.27 279.28 279.29 279.30 279.31 279.32 279.33 279.34 280.1 280.2 280.3 280.4 280.5 280.6 280.7 280.8 280.9 280.10 280.11 280.12 280.13 280.14 280.15 280.16 280.17 280.18 280.19 280.20 280.21 280.22 280.23 280.24 280.25 280.26 280.27 280.28 280.29 280.30 280.31 280.32 281.1 281.2 281.3 281.4 281.5 281.6 281.7 281.8 281.9 281.10 281.11 281.12 281.13 281.14 281.15 281.16 281.17 281.18 281.19 281.20 281.21 281.22 281.23 281.24 281.25
281.26
281.27 281.28 281.29 281.30 281.31 281.32 281.33 282.1 282.2 282.3 282.4 282.5 282.6 282.7 282.8 282.9 282.10 282.11 282.12 282.13 282.14 282.15 282.16 282.17 282.18 282.19 282.20 282.21 282.22 282.23 282.24 282.25 282.26 282.27 282.28 282.29 282.30 282.31 282.32 282.33
283.1
283.2 283.3 283.4 283.5 283.6 283.7 283.8 283.9 283.10 283.11 283.12 283.13 283.14 283.15 283.16 283.17 283.18 283.19 283.20 283.21 283.22 283.23 283.24 283.25 283.26 283.27 283.28
283.29
284.1 284.2 284.3 284.4 284.5
284.6
284.7 284.8 284.9 284.10 284.11 284.12 284.13 284.14 284.15 284.16 284.17 284.18 284.19 284.20 284.21 284.22 284.23 284.24
284.25
284.26 284.27 284.28 284.29 284.30 284.31 285.1 285.2 285.3 285.4 285.5 285.6 285.7 285.8 285.9 285.10 285.11 285.12 285.13 285.14 285.15 285.16 285.17 285.18 285.19 285.20 285.21 285.22 285.23 285.24 285.25 285.26 285.27 285.28 285.29 285.30 285.31 285.32 285.33 286.1 286.2 286.3
286.4
286.5 286.6 286.7 286.8 286.9 286.10 286.11 286.12 286.13 286.14 286.15 286.16 286.17 286.18 286.19 286.20 286.21 286.22 286.23 286.24
286.25
286.26 286.27 286.28 286.29 286.30 286.31 286.32 287.1 287.2 287.3 287.4 287.5 287.6 287.7 287.8 287.9 287.10 287.11 287.12 287.13 287.14 287.15 287.16 287.17 287.18
287.19
287.20 287.21 287.22 287.23 287.24 287.25 287.26 287.27 287.28 287.29
287.30 287.31
288.1 288.2 288.3 288.4 288.5 288.6 288.7 288.8 288.9 288.10 288.11 288.12 288.13 288.14 288.15 288.16 288.17 288.18 288.19 288.20 288.21 288.22 288.23 288.24 288.25 288.26 288.27
288.28
288.29 288.30 288.31 288.32 289.1 289.2 289.3 289.4 289.5 289.6 289.7 289.8 289.9 289.10 289.11 289.12 289.13 289.14 289.15 289.16 289.17 289.18 289.19 289.20 289.21 289.22 289.23 289.24 289.25 289.26 289.27 289.28 289.29 289.30 289.31 289.32 289.33 289.34 290.1 290.2 290.3 290.4 290.5 290.6 290.7
290.8
290.9 290.10 290.11 290.12 290.13 290.14 290.15 290.16 290.17 290.18 290.19 290.20 290.21 290.22 290.23 290.24 290.25 290.26 290.27 290.28 290.29 290.30 290.31 290.32 290.33 290.34 291.1 291.2 291.3 291.4 291.5 291.6 291.7 291.8 291.9
291.10
291.11 291.12 291.13 291.14 291.15 291.16 291.17 291.18 291.19 291.20 291.21 291.22 291.23 291.24 291.25 291.26 291.27 291.28 291.29 291.30 291.31 291.32 292.1 292.2 292.3 292.4 292.5 292.6 292.7 292.8 292.9 292.10 292.11 292.12 292.13 292.14
292.15
292.16 292.17 292.18 292.19 292.20 292.21 292.22 292.23 292.24 292.25 292.26 292.27 292.28 292.29 292.30 292.31 292.32 292.33 292.34 293.1 293.2 293.3 293.4 293.5 293.6 293.7 293.8 293.9 293.10 293.11 293.12 293.13 293.14 293.15 293.16 293.17 293.18 293.19 293.20 293.21
293.22
293.23 293.24 293.25 293.26 293.27 293.28 293.29 293.30 293.31 293.32
293.33
294.1 294.2 294.3 294.4 294.5 294.6 294.7 294.8 294.9 294.10 294.11 294.12 294.13 294.14 294.15
294.16
294.17 294.18 294.19 294.20 294.21 294.22 294.23 294.24 294.25 294.26 294.27 294.28 294.29 294.30 294.31 294.32 295.1 295.2 295.3 295.4 295.5 295.6 295.7 295.8 295.9 295.10 295.11 295.12 295.13 295.14 295.15 295.16
295.17
295.18 295.19 295.20 295.21 295.22 295.23 295.24 295.25
295.26
295.27 295.28 295.29 295.30 295.31 295.32 296.1 296.2 296.3 296.4 296.5 296.6 296.7 296.8 296.9 296.10 296.11 296.12 296.13 296.14 296.15 296.16 296.17 296.18 296.19 296.20 296.21 296.22 296.23 296.24 296.25 296.26 296.27 296.28 296.29 296.30 296.31 296.32 296.33 297.1 297.2 297.3 297.4 297.5 297.6 297.7 297.8 297.9 297.10 297.11 297.12 297.13 297.14 297.15 297.16 297.17 297.18 297.19 297.20 297.21 297.22 297.23 297.24 297.25 297.26 297.27 297.28 297.29 297.30
297.31 297.32
298.1 298.2 298.3 298.4 298.5 298.6 298.7 298.8 298.9 298.10 298.11 298.12 298.13 298.14 298.15 298.16 298.17 298.18 298.19 298.20 298.21 298.22 298.23 298.24 298.25 298.26 298.27 298.28 298.29 298.30 298.31 298.32 299.1 299.2 299.3 299.4 299.5 299.6 299.7 299.8 299.9 299.10 299.11 299.12 299.13 299.14 299.15 299.16 299.17 299.18 299.19 299.20 299.21 299.22 299.23 299.24 299.25 299.26 299.27 299.28 299.29 299.30 299.31 299.32 299.33
299.34
300.1 300.2 300.3 300.4 300.5 300.6 300.7 300.8 300.9 300.10 300.11 300.12 300.13 300.14 300.15 300.16 300.17 300.18 300.19 300.20 300.21 300.22 300.23 300.24 300.25 300.26 300.27 300.28 300.29 300.30 300.31 300.32 300.33 300.34 301.1 301.2
301.3
301.4 301.5 301.6 301.7 301.8 301.9 301.10 301.11 301.12 301.13 301.14 301.15 301.16 301.17 301.18 301.19 301.20 301.21 301.22 301.23 301.24 301.25 301.26 301.27 301.28 301.29 301.30 301.31 301.32 301.33 302.1 302.2 302.3 302.4 302.5 302.6 302.7 302.8 302.9 302.10 302.11 302.12 302.13 302.14 302.15
302.16 302.17
302.18 302.19 302.20 302.21 302.22 302.23 302.24 302.25 302.26 302.27 302.28 302.29
302.30
302.31 302.32
303.1
303.2 303.3
303.4 303.5 303.6 303.7 303.8 303.9 303.10
303.11
303.12 303.13 303.14 303.15 303.16 303.17 303.18 303.19 303.20 303.21 303.22 303.23 303.24 303.25 303.26 303.27 303.28 303.29 303.30 303.31 304.1 304.2 304.3 304.4 304.5 304.6 304.7 304.8 304.9
304.10 304.11
304.12 304.13 304.14 304.15 304.16 304.17 304.18 304.19 304.20 304.21
304.22 304.23
304.24 304.25
304.26
305.1 305.2
305.3 305.4 305.5 305.6 305.7 305.8 305.9
305.10
305.11 305.12 305.13 305.14 305.15 305.16
305.17
305.18 305.19 305.20 305.21 305.22 305.23 305.24 305.25 305.26 305.27 305.28 305.29 305.30 306.1 306.2 306.3 306.4 306.5 306.6 306.7 306.8 306.9 306.10 306.11 306.12 306.13 306.14 306.15 306.16 306.17 306.18 306.19 306.20 306.21 306.22 306.23 306.24 306.25 306.26 306.27
306.28
307.1 307.2 307.3 307.4 307.5 307.6 307.7 307.8 307.9 307.10 307.11 307.12 307.13 307.14 307.15 307.16 307.17 307.18 307.19 307.20 307.21 307.22 307.23 307.24 307.25 307.26 307.27 307.28 307.29 307.30 307.31 307.32 307.33 308.1 308.2 308.3 308.4 308.5 308.6 308.7 308.8 308.9 308.10 308.11 308.12 308.13 308.14 308.15 308.16 308.17 308.18 308.19 308.20 308.21 308.22 308.23 308.24 308.25 308.26 308.27 308.28 308.29 308.30 308.31 308.32 308.33 308.34 308.35 308.36 309.1 309.2 309.3 309.4 309.5 309.6 309.7 309.8 309.9 309.10 309.11 309.12 309.13 309.14 309.15 309.16 309.17 309.18 309.19 309.20 309.21
309.22
309.23 309.24 309.25 309.26 309.27 309.28 309.29 309.30 309.31 310.1 310.2 310.3 310.4 310.5 310.6 310.7 310.8 310.9 310.10 310.11 310.12 310.13 310.14 310.15 310.16 310.17 310.18 310.19 310.20 310.21 310.22 310.23 310.24 310.25 310.26 310.27 310.28 310.29 310.30 310.31 310.32 310.33 310.34 311.1 311.2 311.3 311.4 311.5 311.6 311.7 311.8 311.9 311.10 311.11 311.12 311.13 311.14 311.15 311.16 311.17 311.18 311.19 311.20 311.21 311.22 311.23 311.24 311.25 311.26 311.27 311.28 311.29 311.30 311.31
312.1
312.2 312.3 312.4 312.5 312.6 312.7 312.8 312.9 312.10 312.11
312.12
312.13 312.14 312.15 312.16 312.17 312.18 312.19 312.20 312.21 312.22 312.23 312.24
312.25
312.26 312.27 312.28 312.29 312.30 313.1 313.2 313.3 313.4 313.5 313.6 313.7 313.8 313.9 313.10 313.11 313.12 313.13 313.14 313.15 313.16
313.17
313.18 313.19 313.20 313.21 313.22 313.23 313.24 313.25 313.26 313.27 313.28 313.29
313.30
313.31 313.32 313.33 314.1 314.2 314.3 314.4 314.5 314.6 314.7 314.8 314.9 314.10 314.11 314.12 314.13 314.14 314.15 314.16 314.17 314.18 314.19
314.20
314.21 314.22 314.23 314.24 314.25
314.26
314.27 314.28 314.29 315.1 315.2 315.3 315.4 315.5 315.6 315.7 315.8 315.9 315.10 315.11 315.12 315.13 315.14 315.15 315.16 315.17 315.18 315.19 315.20 315.21 315.22 315.23 315.24 315.25 315.26 315.27 315.28 315.29 315.30 316.1 316.2 316.3 316.4 316.5 316.6 316.7 316.8 316.9 316.10 316.11 316.12 316.13 316.14
316.15
316.16 316.17 316.18 316.19 316.20 316.21 316.22 316.23 316.24 316.25 316.26 316.27 316.28 316.29 316.30 317.1 317.2 317.3 317.4 317.5 317.6 317.7 317.8 317.9 317.10 317.11 317.12 317.13 317.14 317.15 317.16 317.17 317.18 317.19 317.20 317.21 317.22 317.23 317.24 317.25 317.26 317.27 317.28 317.29 317.30 317.31 317.32 318.1 318.2 318.3 318.4 318.5 318.6 318.7 318.8 318.9 318.10 318.11 318.12 318.13 318.14 318.15 318.16 318.17 318.18 318.19 318.20 318.21 318.22 318.23 318.24 318.25 318.26 318.27 318.28 318.29 318.30 318.31 319.1 319.2
319.3
319.4 319.5 319.6
319.7
319.8 319.9 319.10 319.11 319.12 319.13 319.14 319.15 319.16 319.17 319.18 319.19 319.20 319.21 319.22 319.23 319.24 319.25 319.26 319.27 319.28 319.29 319.30 319.31 320.1 320.2 320.3 320.4 320.5 320.6 320.7 320.8 320.9 320.10 320.11 320.12 320.13 320.14 320.15 320.16 320.17 320.18 320.19 320.20 320.21 320.22
320.23
320.24 320.25 320.26 320.27 320.28 320.29 320.30 320.31 320.32 320.33 321.1 321.2 321.3 321.4 321.5
321.6
321.7 321.8 321.9 321.10 321.11 321.12 321.13 321.14 321.15 321.16 321.17 321.18
321.19
321.20 321.21 321.22 321.23 321.24 321.25 321.26 321.27 321.28 321.29 321.30 321.31 321.32 322.1 322.2
322.3
322.4 322.5 322.6 322.7
322.8
322.9 322.10 322.11 322.12 322.13 322.14 322.15 322.16 322.17 322.18 322.19 322.20 322.21 322.22 322.23
322.24
322.25 322.26 322.27 322.28
322.29
323.1 323.2 323.3 323.4 323.5 323.6 323.7 323.8 323.9 323.10 323.11 323.12 323.13 323.14 323.15 323.16 323.17 323.18 323.19 323.20 323.21 323.22 323.23 323.24 323.25 323.26 323.27 323.28 323.29 323.30 323.31 323.32 324.1 324.2 324.3 324.4 324.5 324.6 324.7 324.8 324.9 324.10 324.11 324.12
324.13
324.14 324.15 324.16 324.17 324.18 324.19 324.20 324.21 324.22 324.23 324.24 324.25 324.26 324.27 324.28 324.29 324.30 324.31 325.1 325.2 325.3 325.4 325.5 325.6 325.7 325.8 325.9 325.10 325.11 325.12 325.13 325.14 325.15 325.16 325.17 325.18 325.19 325.20 325.21 325.22 325.23 325.24
325.25
325.26 325.27 325.28 325.29 325.30 326.1 326.2
326.3
326.4 326.5 326.6 326.7 326.8 326.9 326.10 326.11 326.12 326.13 326.14 326.15
326.16
326.17 326.18 326.19 326.20 326.21 326.22 326.23 326.24 326.25 326.26 326.27 326.28 326.29 326.30 327.1 327.2 327.3 327.4 327.5 327.6 327.7 327.8 327.9 327.10 327.11 327.12 327.13 327.14 327.15 327.16 327.17 327.18 327.19 327.20 327.21 327.22 327.23 327.24 327.25 327.26 327.27 327.28 327.29 327.30 328.1 328.2
328.3
328.4 328.5 328.6 328.7 328.8 328.9 328.10 328.11 328.12 328.13 328.14 328.15 328.16 328.17 328.18 328.19 328.20 328.21 328.22 328.23 328.24 328.25 328.26 328.27 328.28 328.29 328.30 328.31 328.32 328.33 329.1 329.2 329.3 329.4 329.5
329.6
329.7 329.8 329.9 329.10 329.11 329.12 329.13 329.14 329.15 329.16 329.17 329.18 329.19 329.20 329.21 329.22 329.23 329.24 329.25 329.26 329.27 329.28 329.29 329.30 330.1 330.2 330.3 330.4 330.5
330.6
330.7 330.8 330.9 330.10 330.11 330.12 330.13 330.14 330.15 330.16 330.17 330.18 330.19 330.20 330.21 330.22 330.23 330.24 330.25 330.26 330.27 330.28 330.29 330.30 330.31 330.32 330.33 331.1 331.2 331.3 331.4 331.5 331.6 331.7 331.8 331.9 331.10 331.11 331.12 331.13 331.14 331.15
331.16
331.17 331.18 331.19 331.20 331.21
331.22
331.23 331.24 331.25 331.26 331.27 331.28 331.29 331.30 331.31 332.1 332.2
332.3
332.4 332.5
332.6 332.7 332.8
332.9
A bill for an act
relating to financing and operation of state and local government; providing
conformity and nonconformity to certain federal tax law changes; modifying
individual income and corporate franchise taxes, estate taxes, sales and use taxes,
property taxes, provisions related to local taxes, tax increment financing, and public
finance, and other miscellaneous taxes and tax provisions; modifying indexing
provisions; changing the starting point for state individual income tax calculation
from federal taxable income to federal adjusted gross income; providing for various
individual and corporate additions and subtractions to income; modifying certain
allowances and adjustments to income; modifying individual income tax rates;
modifying certain income tax credits; modifying and allowing certain exemptions
from sales and use taxes; modifying provisions relating to property tax records
and information; modifying certain property tax timelines; establishing property
tax exemptions; modifying homestead provisions; modifying state general levy;
modifying approval requirements for certain local sales taxes; modifying and
authorizing certain local sales taxes; transferring occupation tax revenue;
establishing private letter ruling program; modifying referendum equalization;
requiring reports; appropriating money; amending Minnesota Statutes 2018, sections
6.495, subdivision 3; 37.31, subdivision 1; 38.27, by adding a subdivision;
103D.905, subdivisions 5, 9; 103E.611, subdivision 2; 116J.8737, subdivisions 5,
12; 123B.595, subdivision 5; 126C.17, subdivision 6; 138.053; 144E.42, subdivision
2; 162.145, subdivision 3; 197.603, subdivision 2; 270A.03, subdivision 5; 270B.08,
subdivision 2; 270C.31, by adding a subdivision; 270C.33, by adding subdivisions;
270C.34, subdivision 1; 270C.35, subdivision 4; 270C.445, subdivision 6; 270C.85,
subdivision 2; 270C.89, subdivisions 1, 2; 270C.91; 272.02, subdivisions 27, 49,
81, by adding subdivisions; 273.032; 273.061, subdivision 9; 273.0755; 273.113,
subdivision 3; 273.119, subdivision 2; 273.1231, subdivision 3; 273.124,
subdivisions 3a, 8, 13, 14, 21, by adding a subdivision; 273.1245, subdivision 2;
273.13, subdivisions 22, 25, 34, 35; 273.136, subdivision 2; 273.1384, subdivisions
2, 3; 273.1387, subdivision 3; 273.18; 273.371, subdivision 1; 273.3711; 273.372,
subdivision 3; 274.14; 274.16; 275.025, subdivision 1, by adding a subdivision;
275.066; 276.131; 282.01, subdivision 6; 289A.02, subdivision 7; 289A.08,
subdivisions 1, 6, 7, by adding a subdivision; 289A.12, subdivision 14; 289A.20,
subdivision 4; 289A.25, subdivision 1; 289A.31, subdivisions 1, 2; 289A.35;
289A.37, subdivisions 2, 6; 289A.38, subdivisions 7, 10; 289A.40, subdivision 1;
289A.42; 289A.60, subdivision 1; 290.01, subdivisions 4a, 19, 22, 29a, 31, by
adding subdivisions; 290.0131, subdivisions 1, 3, 12, 13, by adding subdivisions;
290.0132, subdivisions 1, 4, 7, 20, 21, 26, by adding subdivisions; 290.0133, by
adding subdivisions; 290.0134, by adding subdivisions; 290.0137; 290.032,
subdivision 2; 290.05, subdivisions 1, 3; 290.06, subdivisions 2c, 2d, 22; 290.067,
subdivision 2b; 290.0671, subdivision 7; 290.0672, subdivisions 1, 2; 290.0674,
subdivisions 1, 2, by adding a subdivision; 290.0681, subdivisions 1, 2, 3, 4;
290.0802, subdivisions 2, 3; 290.091, subdivision 2; 290.0921, subdivisions 2, 3;
290.17, subdivisions 2, 4; 290.21, subdivision 4; 290.34, by adding a subdivision;
290.92, subdivisions 1, 4b, 4c, 28; 290A.03, subdivisions 3, 4, 8, 12, 13, 15;
290A.04, subdivision 4; 290A.05; 290A.08; 290A.09; 290B.09, subdivision 1;
291.005, subdivision 1; 291.03, subdivisions 9, 10; 295.50, subdivisions 3, 4, 9b,
14, 15, by adding subdivisions; 295.53, subdivision 1; 295.57, subdivision 5;
295.582, subdivision 1; 296A.03, subdivision 3; 296A.13; 297A.61, subdivision
18; 297A.67, subdivisions 6, 12, by adding subdivisions; 297A.68, subdivisions
17, 25, 42, 44; 297A.70, subdivisions 3, 4, 10, 16, 20, by adding a subdivision;
297A.71, subdivisions 22, 45, by adding subdivisions; 297A.75, subdivisions 1,
2, 3; 297A.77, subdivision 3, by adding a subdivision; 297A.84; 297A.85; 297A.99,
subdivisions 1, 2, 3, by adding a subdivision; 297A.993, subdivision 1, by adding
a subdivision; 297B.01, subdivisions 14, 16; 297B.03; 297E.02, subdivision 6;
297E.021, subdivision 2; 297F.01, subdivisions 19, 23, by adding a subdivision;
297F.17, subdivision 6; 297G.16, subdivision 7; 297I.20, subdivision 3; 298.018,
subdivision 1, by adding a subdivision; 298.17; 298.227; 298.282, subdivision 1;
349.15, subdivision 1; 349.151, subdivision 4; 353G.01, subdivision 9; 353G.05,
subdivision 2; 353G.08, subdivisions 1, 1a; 353G.17, subdivision 2; 356.20,
subdivision 4a; 356.219, subdivision 8; 423A.02, subdivisions 1b, 3; 423A.022,
subdivisions 2, 4; 424A.016, subdivisions 2, 4; 424A.02, subdivisions 1, 3a, 10;
424A.03, subdivision 2; 424A.05, subdivisions 2, 3, by adding a subdivision;
424A.07; 424A.091, subdivision 3; 424A.092, subdivisions 3, 4; 424A.093,
subdivision 5; 424B.09; 462A.38; 462D.03, subdivision 2; 462D.06, subdivisions
1, 2; 469.169, by adding a subdivision; 469.177, subdivision 1; 469.316, subdivision
1; 469.319, subdivision 4; 471.831; 473H.08, subdivisions 1, 4, by adding a
subdivision; 473H.09, by adding a subdivision; 474A.02, subdivision 22b; 475.521,
subdivision 1; 477A.0126, subdivisions 6, 7; 477A.016; Minnesota Statutes 2019
Supplement, sections 289A.60, subdivision 24; 290.31, subdivision 1; Laws 1980,
chapter 511, section 1, subdivision 1; Laws 1986, chapter 396, section 5, as
amended; Laws 1986, chapter 462, section 31, as amended; Laws 1994, chapter
587, article 9, section 11; Laws 1998, chapter 389, article 8, section 45, subdivisions
1, 3, as amended, 4, 5; Laws 2008, chapter 366, article 5, sections 26, as amended;
33, as amended; Laws 2009, chapter 88, article 2, section 46, subdivisions 1, as
amended, 2, 3, as amended, 4, 5; Laws 2011, First Special Session chapter 7, article
4, section 10, subdivision 3; Laws 2014, chapter 308, article 6, section 8,
subdivision 1, as amended; Laws 2017, First Special Session chapter 1, article 3,
section 32; article 8, section 3; article 10, section 4; proposing coding for new law
in Minnesota Statutes, chapters 270C; 273; 289A; 290; 297A; 297I; 424A;
proposing coding for new law as Minnesota Statutes, chapters 299O; 477B; 477C;
repealing Minnesota Statutes 2018, sections 37.31, subdivision 8; 69.011,
subdivisions 1, 2, 2b, 2c, 3, 4; 69.021, subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, 11;
69.022; 69.031, subdivisions 1, 3, 5; 69.041; 69.051, subdivisions 1, 1a, 1b, 2, 3,
4; 69.33; 69.80; 270C.131; 275.29; 289A.38, subdivisions 7, 8, 9; 290.0131,
subdivisions 7, 10, 11; 290.0133, subdivisions 12, 13, 14; 290.10, subdivision 2;
296A.03, subdivision 5; 296A.04, subdivision 2; 296A.05, subdivision 2; 297I.25,
subdivision 2; 349.213, subdivision 3; Minnesota Rules, part 8125.0410, subpart
1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
FEDERAL CONFORMITY
Section 1.
Minnesota Statutes 2018, section 270A.03, subdivision 5, is amended to read:
Subd. 5.
Debt; debtor.
(a) "Debt" means a legal obligation of a natural person to pay a
fixed and certain amount of money, which equals or exceeds $25 and which is due and
payable to a claimant agency. The term includes criminal fines imposed under section 609.10
or 609.125, fines imposed for petty misdemeanors as defined in section 609.02, subdivision
4a, and restitution. A debt may arise under a contractual or statutory obligation, a court
order, or other legal obligation, but need not have been reduced to judgment.
A debt includes any legal obligation of a current recipient of assistance which is based
on overpayment of an assistance grant where that payment is based on a client waiver or
an administrative or judicial finding of an intentional program violation; or where the debt
is owed to a program wherein the debtor is not a client at the time notification is provided
to initiate recovery under this chapter and the debtor is not a current recipient of food support,
transitional child care, or transitional medical assistance.
(b) A debt does not include any legal obligation to pay a claimant agency for medical
care, including hospitalization if the income of the debtor at the time when the medical care
was rendered does not exceed the following amount:
(1) for an unmarried debtor, an income of $12,560 or less;
(2) for a debtor with one dependent, an income of $16,080 or less;
(3) for a debtor with two dependents, an income of $19,020 or less;
(4) for a debtor with three dependents, an income of $21,580 or less;
(5) for a debtor with four dependents, an income of $22,760 or less; and
(6) for a debtor with five or more dependents, an income of $23,730 or less.
For purposes of this paragraph, "debtor" means the individual whose income, together
with the income of the individual's spouse, other than a separated spouse, brings the
individual within the income provisions of this paragraph. For purposes of this paragraph,
a spouse, other than a separated spouse, shall be considered a dependent.
(c) The commissioner shallnew text begin annuallynew text end adjust the deleted text begin incomedeleted text end amounts in paragraph (b) deleted text begin 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 "2014" shall be substituted for the word
"1992." For 2016, the commissioner shall then determine the percent change from the 12
months ending on August 31, 2014, to the 12 months ending on August 31, 2015, and in
each subsequent year, from the 12 months ending on August 31, 2014, to the 12 months
ending on August 31 of the year preceding the taxable year. The determination of the
commissioner pursuant to this subdivision shall not be considered a "rule" and shall not be
subject to the Administrative Procedure Act contained in chapter 14. The income amount
as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, the amount
is rounded up to the nearest $10 amountdeleted text end new text begin as provided in section 270C.22. The statutory year
is taxable year 2019new text end .
(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the
dollar amount of the premium authorized under section 256L.15, subdivision 1a.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for adjustments beginning with taxable
years beginning after December 31, 2019.
new text end
Sec. 2.
new text begin
[270C.22] COST OF LIVING ADJUSTMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Adjustment; definition; period; rounding. new text end
new text begin
(a) The commissioner shall
annually make a cost of living adjustment to the dollar amounts noted in sections that
reference this section. The commissioner shall adjust the amounts based on the index as
provided in this section. For purposes of this section, "index" means the Chained Consumer
Price Index for All Urban Consumers published by the Bureau of Labor Statistics. The
values of the index used to determine the adjustments under this section are the latest
published values when the Bureau of Labor Statistics publishes the initial value of the index
for August of the year preceding the year to which the adjustment applies.
new text end
new text begin
(b) For the purposes of this section, "statutory year" means the year preceding the first
year for which dollar amounts are to be adjusted for inflation under sections that reference
this section. For adjustments under chapter 290A, "statutory year" means the year in which
refunds are payable preceding the first year for which amounts in chapter 290A are indexed
under this section.
new text end
new text begin
(c) To determine the dollar amounts for taxable year 2020, the commissioner shall
determine the percentage change in the index for the 12-month period ending on August
31, 2019, and increase each of the unrounded dollar amounts in the sections referencing
this section by that percentage change. For each subsequent taxable year, the commissioner
shall increase the dollar amounts by the percentage change in the index from August 31 of
the year preceding the statutory year to August 31 of the year preceding the taxable year.
new text end
new text begin
(d) To determine the dollar amounts for refunds payable in 2021 under chapter 290A,
the commissioner shall determine the percentage change in the index for the 12-month
period ending on August 31, 2020, and increase each of the unrounded dollar amounts in
the sections referencing this section by that percentage change. For each subsequent year,
the commissioner shall increase the dollar amounts by the percentage change in the index
from August 31 of the year preceding the statutory year to August 31 of the year preceding
the year in which refunds are payable.
new text end
new text begin
(e) Unless otherwise provided, the commissioner shall round the amounts as adjusted
to the nearest $10 amount. If an amount ends in $5, the amount is rounded up to the nearest
$10 amount.
new text end
new text begin Subd. 2. new text end
new text begin Publication. new text end
new text begin
The commissioner shall announce and publish the adjusted dollar
amounts required by subdivision 1 on the Department of Revenue's website on or before
December 15 of each year.
new text end
new text begin Subd. 3. new text end
new text begin Special provision. new text end
new text begin
The determination of the commissioner under this subdivision
is not a rule and is not subject to the Administrative Procedure Act under chapter 14,
including section 14.386.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for adjustments beginning with taxable
years beginning after December 31, 2019, calendar years beginning after December 31,
2019, and for refunds based on rent paid in 2019 and property taxes payable in 2020.
new text end
Sec. 3.
Minnesota Statutes 2018, section 289A.02, subdivision 7, is amended to read:
Subd. 7.
Internal Revenue Code.
Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin December
16, 2016deleted text end new text begin December 31, 2018new 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 retroactively at the same time the
changes become effective for federal purposes.
new text end
Sec. 4.
Minnesota Statutes 2018, section 289A.08, subdivision 1, is amended to read:
Subdivision 1.
Generally; individuals.
(a) A taxpayer must file a return for each taxable
year the taxpayer is required to file a return under section 6012 of the Internal Revenue
Codenew text begin or meets the requirements under paragraph (d) to file a returnnew text end , except that:
(1) an individual who is not a Minnesota resident for any part of the year is not required
to file a Minnesota income tax return if the individual's gross income derived from Minnesota
sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the
filing requirements for a single individual who is a full year resident of Minnesota; deleted text begin and
deleted text end
(2) an individual who is a Minnesota resident is not required to file a Minnesota income
tax return if the individual's gross income derived from Minnesota sources as determined
under section 290.17, less the subtractions allowed under section 290.0132, subdivisions
12 and 15, is less than the filing requirements for a single individual who is a full-year
resident of Minnesota.
(b) The decedent's final income tax return, and other income tax returns for prior years
where the decedent had gross income in excess of the minimum amount at which an
individual is required to file and did not file, must be filed by the decedent's personal
representative, if any. If there is no personal representative, the return or returns must be
filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property
of the decedent.
(c) The term "gross income," as it is used in this section, has the same meaning given it
in section 290.01, subdivision 20.
new text begin
(d) The commissioner of revenue shall annually determine the gross income levels at
which individuals are required to file a return for each taxable year based on the amounts
that may be deducted under section 290.0803 and the personal and dependent exemptions
under section 290.0138.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 5.
Minnesota Statutes 2018, section 289A.08, subdivision 7, is amended to read:
Subd. 7.
Composite income tax returns for nonresident partners, shareholders, and
beneficiaries.
(a) The commissioner may allow a partnership with nonresident partners to
file a composite return and to pay the tax on behalf of nonresident partners who have no
other Minnesota source income. This composite return must include the names, addresses,
Social Security numbers, income allocation, and tax liability for the nonresident partners
electing to be covered by the composite return.
(b) The computation of a partner's tax liability must be determined by multiplying the
income allocated to that partner by the highest rate used to determine the tax liability for
individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard
deductions, or personal exemptions are not allowed.
(c) The partnership must submit a request to use this composite return filing method for
nonresident partners. The requesting partnership must file a composite return in the form
prescribed by the commissioner of revenue. The filing of a composite return is considered
a request to use the composite return filing method.
(d) The electing partner must not have any Minnesota source income other than the
income from the partnership and other electing partnerships. If it is determined that the
electing partner has other Minnesota source income, the inclusion of the income and tax
liability for that partner under this provision will not constitute a return to satisfy the
requirements of subdivision 1. The tax paid for the individual as part of the composite return
is allowed as a payment of the tax by the individual on the date on which the composite
return payment was made. If the electing nonresident partner has no other Minnesota source
income, filing of the composite return is a return for purposes of subdivision 1.
(e) This subdivision does not negate the requirement that an individual pay estimated
tax if the individual's liability would exceed the requirements set forth in section 289A.25.
The individual's liability to pay estimated tax is, however, satisfied when the partnership
pays composite estimated tax in the manner prescribed in section 289A.25.
(f) If an electing partner's share of the partnership's gross income from Minnesota sources
is less than the filing requirements for a nonresident under this subdivision, the tax liability
is zero. However, a statement showing the partner's share of gross income must be included
as part of the composite return.
(g) The election provided in this subdivision is only available to a partner who has no
other Minnesota source income and who is either (1) a full-year nonresident individual or
(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the
Internal Revenue Code.
(h) A corporation defined in section 290.9725 and its nonresident shareholders may
make an election under this paragraph. The provisions covering the partnership apply to
the corporation and the provisions applying to the partner apply to the shareholder.
(i) Estates and trusts distributing current income only and the nonresident individual
beneficiaries of the estates or trusts may make an election under this paragraph. The
provisions covering the partnership apply to the estate or trust. The provisions applying to
the partner apply to the beneficiary.
(j) For the purposes of this subdivision, "income" means the partner's share of federal
adjusted gross income from the partnership modified by the additions provided in section
290.0131, subdivisions 8 to deleted text begin 11deleted text end new text begin 10 and 15new text end , and the subtractions provided in: (1) section
290.0132, subdivision 9, to the extent the amount is assignable or allocable to Minnesota
under section 290.17; and (2) section 290.0132, subdivision 14. The subtraction allowed
under section 290.0132, subdivision 9, is only allowed on the composite tax computation
to the extent the electing partner would have been allowed the subtraction.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 6.
Minnesota Statutes 2018, section 289A.12, subdivision 14, is amended to read:
Subd. 14.
Reporting exempt interest and exempt-interest dividends.
(a) A regulated
investment company paying $10 or more in exempt-interest dividends to an individual who
is a resident of Minnesota, or any person receiving $10 or more of exempt interest or
exempt-interest dividends and paying as nominee to an individual who is a resident of
Minnesota, must make a return indicating the amount of the exempt interest or
exempt-interest dividends, the name, address, and Social Security number of the recipient,
and any other information that the commissioner specifies. The return must be provided to
the recipient by February 15 of the year following the year of the payment. The return
provided to the recipient must include a clear statement, in the form prescribed by the
commissioner, that the exempt interest or exempt-interest dividends must be included in
the computation of Minnesota taxable income. By June 1 of each year, the payer must file
a copy of the return with the commissioner.
(b) For purposes of this subdivision, the following definitions apply.
(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section
852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest
dividends that are not required to be added to federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end income under
section 290.0131, subdivision 2, paragraph (b).
(2) "Regulated investment company" means regulated investment company as defined
in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company
as defined in section 851(g) of the Internal Revenue Code.
(3) "Exempt interest" means income on obligations of any state other than Minnesota,
or a political or governmental subdivision, municipality, or governmental agency or
instrumentality of any state other than Minnesota, and exempt from federal income taxes
under the Internal Revenue Code or any other federal statute.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 7.
Minnesota Statutes 2018, section 289A.35, is amended to read:
289A.35 ASSESSMENTS ON RETURNS.
(a) The commissioner may audit and adjust the taxpayer's computation of new text begin federal adjusted
gross income, new text end federal taxable income, items of federal tax preferences, or federal credit
amounts to make them conform with the provisions of chapter 290 or section 298.01. If a
return has been filed, the commissioner shall enter the liability reported on the return and
may make any audit or investigation that is considered necessary.
(b) Upon petition by a taxpayer, and when the commissioner determines that it is in the
best interest of the state, the commissioner may allow S corporations and partnerships to
receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their
owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must
be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).
(c) A taxpayer may petition the commissioner for the use of the method described in
paragraph (b) after the taxpayer is notified that an audit has been initiated and before an
order of assessment has been issued.
(d) A determination of the commissioner under paragraph (b) to grant or deny the petition
of a taxpayer cannot be appealed to the Tax Court or any other court.
(e) The commissioner may audit and adjust the taxpayer's computation of tax under
chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner
shall notify the estate no later than nine months after the filing date, as provided by section
289A.38, subdivision 2, whether the return is under examination or the return has been
processed as filed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 8.
Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to
read:
new text begin Subd. 14a. new text end
new text begin Surviving spouse. new text end
new text begin
The term "surviving spouse" means an individual who is
a surviving spouse under section 2(a) of the Internal Revenue Code for the taxable year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 9.
Minnesota Statutes 2018, section 290.01, subdivision 19, is amended to read:
Subd. 19.
Net income.
new text begin (a) For a corporation taxable under section 290.02, and an estate
or a trust taxable under section 290.03, new text end the term "net income" means the federal taxable
income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through
the date named in this subdivision, incorporating the federal effective dates of changes to
the Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in sections 290.0131 to 290.0136.
new text begin
(b) For an individual, the term "net income" means federal adjusted gross income with
the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
new text end
new text begin (c) new text end In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:
(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
and
(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.
new text begin (d) new text end The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
new text begin (e) new text end The net income of a designated settlement fund as defined in section 468B(d) of the
Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
Revenue Code.
new text begin (f) new text end The Internal Revenue Code of 1986, as amended through December deleted text begin 16, 2016deleted text end new text begin 31,
2018new text end , shall be in effect for taxable years beginning after December 31, 1996.
new text begin (g) new text end Except as otherwise provided, references to the Internal Revenue Code in this
subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of
determining net income for the applicable year.
new text begin EFFECTIVE DATE. new text end
new text begin
(a) The amendments to paragraphs (a) and (b) are effective for
taxable years beginning after December 31, 2018.
new text end
new text begin
(b) This amendment to paragraph (f) is effective the day following final enactment,
except the changes incorporated by federal changes in Public Laws 115-63 and 115-123,
are effective retroactively at the same time as the changes were effective for federal purposes.
new text end
Sec. 10.
Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to
read:
new text begin Subd. 21a. new text end
new text begin Adjusted gross income; federal adjusted gross income. new text end
new text begin
The terms "adjusted
gross income" and "federal adjusted gross income" mean adjusted gross income, as defined
in section 62 of the Internal Revenue Code, as amended through the date named in
subdivision 19, paragraph (f), incorporating the federal effective date of changes to the
Internal Revenue Code and any elections made by the taxpayer under the Internal Revenue
Code in determining federal adjusted gross income for federal income tax purposes.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 11.
Minnesota Statutes 2018, section 290.01, subdivision 22, is amended to read:
Subd. 22.
Taxable net income.
For tax years beginning after December 31, deleted text begin 1986deleted text end new text begin 2018new text end ,
the term "taxable net income" means:
(1) for resident individuals deleted text begin the same asdeleted text end new text begin ,new text end net incomenew text begin less the deductions allowed under
section 290.0803new text end ;
(2) for individuals who were deleted text begin notdeleted text end residents of Minnesota for new text begin less than new text end the entire year, deleted text begin the
same asdeleted text end net incomenew text begin less the deductions allowed under section 290.0803,new text end except that the tax
is imposed only on the Minnesota apportioned share of that income as determined pursuant
to section 290.06, subdivision 2c, paragraph (e);
(3) for all other taxpayers, the part of net income that is allocable to Minnesota by
assignment or apportionment under one or more of sections 290.17, 290.191, 290.20, and
290.36new text begin , except that for nonresident individuals net income is reduced by the amount of the
standard deduction allowable under section 290.0803, subdivision 2, before allocation of
net income to Minnesotanew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 12.
Minnesota Statutes 2018, section 290.01, subdivision 29a, is amended to read:
Subd. 29a.
State itemized deduction.
"State itemized deduction" means federal itemized
deductions, as defined in section 63(d) of the Internal Revenue Code, disregarding deleted text begin any
limitation under section 68 of the Internal Revenue Code, and reduced by the amount of
the addition required under section 290.0131, subdivision 13.deleted text end new text begin changes to itemized deductions
made by Public Law 115-97, except that:
new text end
new text begin
(1) section 13704 of Public Law 115-97 applies;
new text end
new text begin
(2) section 11043 of Public Law 115-97 applies;
new text end
new text begin
(3) for the purposes of calculating miscellaneous itemized deductions, under section
67(a) of the Internal Revenue Code, the number "5" is substituted for the number "2"; and
new text end
new text begin
(4) the deduction of taxes under section 164 of the Internal Revenue Code is limited to
state and local real property taxes and state and local personal property taxes up to $15,000,
or $7,500 for a married couple filing a separate return.
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, 2018.
new text end
Sec. 13.
Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to
read:
new text begin Subd. 29b. new text end
new text begin State standard deduction. new text end
new text begin
"State standard deduction" means the federal
standard deduction computed under section 63(c), (f), and (g) of the Internal Revenue Code,
as amended through December 16, 2016, except that for purposes of adjusting the amounts
under this subdivision, the provisions of section 270C.22, apply.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 14.
Minnesota Statutes 2018, section 290.01, subdivision 31, is amended to read:
Subd. 31.
Internal Revenue Code.
Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin December
16, 2016deleted text end new text begin December 31, 2018new text end . Internal Revenue Code also includes any uncodified provision
in federal law that relates to provisions of the Internal Revenue Code that are incorporated
into Minnesota law.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to the same taxable years as the changes incorporated by federal changes are effective
for federal purposes, including any provisions that are retroactive to taxable years beginning
after December 31, 2016, but excluding the change made to the temporary reduction in
medical expense deduction floor in section 11027 of Public Law 115-97.
new text end
Sec. 15.
Minnesota Statutes 2018, section 290.0131, subdivision 1, is amended to read:
Subdivision 1.
Definition; scope.
(a) For the purposes of this section, "addition" means
an amount that must be added to federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end incomenew text begin , or for estates and
trusts, federal taxable income,new text end in computing net income for the taxable year to which the
amounts relate.
(b) The additions in this section apply to individuals, estates, and trusts.
(c) Unless specifically indicated or unless the context clearly indicates otherwise, only
amounts that were deducted or excluded in computing federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end incomenew text begin ,
or for estates and trusts, federal taxable income,new text end are an addition under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 16.
Minnesota Statutes 2018, section 290.0131, subdivision 3, is amended to read:
Subd. 3.
Income, sales and use, motor vehicle sales, or excise taxes paid.
deleted text begin (a)deleted text end new text begin For trusts
and estates,new text end the amount of income, sales and use, motor vehicle sales, or excise taxes paid
or accrued within the taxable year under this chapter and the amount of taxes based on net
income, sales and use, motor vehicle sales, or excise taxes paid to any other state or to any
province or territory of Canada is an addition to the extent deducted under section 63(d) of
the Internal Revenue Code.
deleted text begin
(b) The addition under paragraph (a) may not be more than the amount by which the
state itemized deduction exceeds the amount of the standard deduction as defined in section
63(c) of the Internal Revenue Code. For the purpose of this subdivision, income, sales and
use, motor vehicle sales, or excise taxes are the last itemized deductions disallowed under
subdivision 12.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 17.
Minnesota Statutes 2018, section 290.0131, subdivision 12, is amended to read:
Subd. 12.
Disallowed itemized deductions.
(a) The amount of disallowed itemized
deductions is an addition. The amount of disallowed itemized deductionsdeleted text begin , plus the addition
required under subdivision 3,deleted text end may not be more than the amount by which thenew text begin statenew text end itemized
deductionsdeleted text begin , as allowed under section 63(d) of the Internal Revenue Code,deleted text end exceeds the amount
of the new text begin state new text end standard deduction deleted text begin as defined in section 63(c) of the Internal Revenue Codedeleted text end .
(b) The amount of disallowed itemized deductions is equal to the lesser of:
(1) three percent of the excess of the taxpayer's federal adjusted gross income over the
applicable amount; or
(2) 80 percent of the amount of the new text begin state new text end itemized deductions otherwise allowable to the
taxpayer under the Internal Revenue Code for the taxable year.
(c) "Applicable amount" means $100,000, or $50,000 for a married individual filing a
separate return. Each dollar amount is increased by an amount equal to:
(1) that dollar amount, multiplied by
(2) the cost-of-living adjustment determined under section deleted text begin 1(f)(3) of the Internal Revenue
Code for the calendar year in which the taxable year begins, by substituting "calendar year
1990" for "calendar year 1992" in subparagraph (B) of section 1(f)(3)deleted text end new text begin 270C.22new text end .
(d) "Itemized deductions" excludes:
(1) the deduction for medical expenses under section 213 of the Internal Revenue Code;
(2) any deduction for investment interest as defined in section 163(d) of the Internal
Revenue Code; and
(3) the deduction under section 165(a) of the Internal Revenue Code for casualty or theft
losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue Code or
for losses described in section 165(d) of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 18.
Minnesota Statutes 2018, section 290.0131, subdivision 13, is amended to read:
Subd. 13.
Disallowed personal exemption amount.
(a) The amount of disallowed
personal exemptions for taxpayers with federal adjusted gross income over the threshold
amount is an addition.
(b) The disallowed personal exemption amount is equal to the deleted text begin number ofdeleted text end personal
deleted text begin exemptionsdeleted text end new text begin and dependent exemption subtractionnew text end allowed under section deleted text begin 151(b) and (c) of
the Internal Revenue Codedeleted text end new text begin 290.0132, subdivision 20,new text end multiplied by the deleted text begin dollar amount for
personal exemptions under section 151(d)(1) and (2) of the Internal Revenue Code, as
adjusted for inflation by section 151(d)(4) of the Internal Revenue Code, and by thedeleted text end
applicable percentage.
(c) For a married individual filing a separate return, "applicable percentage" means two
percentage points for each $1,250, or fraction of that amount, by which the taxpayer's federal
adjusted gross income for the taxable year exceeds the threshold amount. For all other filers,
applicable percentage means two percentage points for each $2,500, or fraction of that
amount, by which the taxpayer's federal adjusted gross income for the taxable year exceeds
the threshold amount. The applicable percentage must not exceed 100 percent.
(d) "Threshold amount" means:
(1) $150,000 for a joint return or a surviving spouse;
(2) $125,000 for a head of a household;
(3) $100,000 for an individual who is not married and who is not a surviving spouse or
head of a household; and
(4) $75,000 for a married individual filing a separate return.
(e) The thresholds must be increased by an amount equal to:
(1) the threshold dollar amount, multiplied by
(2) the cost-of-living adjustment deleted text begin determineddeleted text end under section deleted text begin 1(f)(3) of the Internal Revenue
Code for the calendar year in which the taxable year begins, by substituting "calendar year
1990" for "calendar year 1992" in subparagraph (B) of section 1(f)(3)deleted text end new text begin 270C.22new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 19.
Minnesota Statutes 2018, section 290.0131, is amended by adding a subdivision
to read:
new text begin Subd. 15. new text end
new text begin Qualified business income addition. new text end
new text begin
For a trust or estate, the amount deducted
under section 199A of the Internal Revenue Code in computing the federal taxable income
of the trust or estate is an addition.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 20.
Minnesota Statutes 2018, section 290.0131, is amended by adding a subdivision
to read:
new text begin Subd. 16. new text end
new text begin Foreign-derived intangible income. new text end
new text begin
The amount of foreign-derived intangible
income deducted under section 250 of the Internal Revenue Code for the taxable year is an
addition.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2017.
new text end
Sec. 21.
Minnesota Statutes 2018, section 290.0132, subdivision 1, is amended to read:
Subdivision 1.
Definition; scope.
(a) For the purposes of this section, "subtraction"
means an amount that deleted text begin shalldeleted text end new text begin is allowed tonew text end be subtracted from federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end
incomenew text begin , or for estates and trusts, federal taxable income,new text end in computing net income for the
taxable year to which the amounts relate.
(b) The subtractions in this section apply to individuals, estates, and trusts.
(c) Unless specifically indicated or unless the context clearly indicates otherwise, no
amount deducted, subtracted, or otherwise excluded in computing federal deleted text begin taxabledeleted text end new text begin adjusted
grossnew text end incomenew text begin , or for estates and trusts, federal taxable income,new text end is a subtraction under this
section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 22.
Minnesota Statutes 2018, section 290.0132, subdivision 7, is amended to read:
Subd. 7.
Charitable contributions for taxpayers who do not itemize.
deleted text begin To the extent
not deducted or not deductible under section 408(d)(8)(E) of the Internal Revenue Code in
determining federal taxable income bydeleted text end new text begin Fornew text end an individual who does not itemize deductions
deleted text begin for federal income tax purposesdeleted text end new text begin under section 290.0803new text end for the taxable year, an amount
equal to 50 percent of the excess of charitable contributions over $500 allowable as a new text begin state
itemized new text end deduction for the taxable year deleted text begin under section 170(a) of the Internal Revenue Codedeleted text end
is a subtraction.new text begin The subtraction under this subdivision must not include a distribution that
is excluded from federal adjusted gross income and that is not deductible under section
408(d)(8)(E) of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 23.
Minnesota Statutes 2018, section 290.0132, subdivision 20, is amended to read:
Subd. 20.
deleted text begin Disalloweddeleted text end Personal new text begin and dependent new text end exemption.
deleted text begin
The amount of the phaseout
of personal exemptions under section 151(d) of the Internal Revenue Code is a subtraction.
deleted text end
new text begin
The amount of personal and dependent exemptions calculated under section 290.0138 is a
subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 24.
Minnesota Statutes 2018, section 290.0132, subdivision 21, is amended to read:
Subd. 21.
Military service pension; retirement pay.
To the extent included in federal
deleted text begin taxabledeleted text end new text begin adjusted grossnew text end income, compensation received from a pension or other retirement
pay from the federal government for service in the military, as computed under United
States Code, title 10, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The
subtraction is limited to individuals who do not claim the credit under section 290.0677.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 25.
Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 27. new text end
new text begin Global intangible low-taxed income. new text end
new text begin
The taxpayer's global intangible
low-taxed income included under section 951A of the Internal Revenue Code for the taxable
year is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2017.
new text end
Sec. 26.
Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 28. new text end
new text begin Deferred foreign income. new text end
new text begin
The amount of deferred foreign income recognized
because of section 965 of the Internal Revenue Code, and before any deduction under section
965(c) of the Internal Revenue Code, is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time the
changes become effective for federal purposes.
new text end
Sec. 27.
Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 29. new text end
new text begin Standard or itemized deduction. new text end
new text begin
The amount allowed under section 290.0803
is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 28.
Minnesota Statutes 2018, section 290.0133, is amended by adding a subdivision
to read:
new text begin Subd. 15. new text end
new text begin Foreign-derived intangible income. new text end
new text begin
The amount of foreign-derived intangible
income deducted under section 250 of the Internal Revenue Code for the taxable year is an
addition.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2017.
new text end
Sec. 29.
Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision
to read:
new text begin Subd. 17. new text end
new text begin Global intangible low-taxed income. new text end
new text begin
The taxpayer's global intangible
low-taxed income included under section 951A of the Internal Revenue Code for the taxable
year is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2017.
new text end
Sec. 30.
Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision
to read:
new text begin Subd. 18. new text end
new text begin Deferred foreign income. new text end
new text begin
The amount of deferred foreign income recognized
because of section 965 of the Internal Revenue Code, and before any deduction under section
965(c) of the Internal Revenue Code, is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time the
changes become effective for federal purposes.
new text end
Sec. 31.
new text begin
[290.0138] PERSONAL AND DEPENDENT EXEMPTIONS.
new text end
new text begin
(a) A taxpayer is allowed: (1) a personal exemption in the amount of $4,250, and in the
case of a married couple filing a joint return an additional personal exemption of $4,250;
plus (2) a dependent exemption of $4,250 multiplied by the number of dependents of the
taxpayer, as defined under sections 151 and 152 of the Internal Revenue Code.
new text end
new text begin
(b) The personal and dependent exemptions are not allowed to an individual who is
eligible to be claimed as a dependent, as defined in sections 151 or 152 of the Internal
Revenue Code, by another taxpayer.
new text end
new text begin
(c) The commissioner shall annually adjust the amounts in this section under section
270C.22. The statutory year is taxable year 2019.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2019.
new text end
Sec. 32.
Minnesota Statutes 2018, section 290.032, subdivision 2, is amended to read:
Subd. 2.
Computation.
The amount of tax imposed by subdivision 1 shall be computed
in the same way as the tax imposed under section 402(d) of the Internal Revenue Code of
1986, as amended through December 31, 1995, except that the initial separate tax shall be
an amount equal to five times the tax which would be imposed by section 290.06, subdivision
2c, if the recipient was an unmarried individual, and the taxable net income was an amount
equal to one-fifth of the excess of
(i) the total taxable amount of the lump-sum distribution for the year, over
(ii) the minimum distribution allowance, and except that references in section 402(d) of
the Internal Revenue Code of 1986, as amended through December 31, 1995, to paragraph
(1)(A) thereof shall instead be references to subdivision 1, and the excess, if any, of the
subtraction base amount over deleted text begin federaldeleted text end new text begin netnew text end taxable income for a qualified individual as provided
under section 290.0802, subdivision 2.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 33.
Minnesota Statutes 2018, section 290.06, subdivision 2d, is amended to read:
Subd. 2d.
Inflation adjustment of brackets.
deleted text begin (a) For taxable years beginning after
December 31, 2013,deleted text end new text begin The commissioner shall annually adjustnew text end the minimum and maximum
dollar amounts for each rate bracket for which a tax is imposed in subdivision 2c deleted text begin shall be
adjusted for inflation by the percentage determined under paragraph (b). For the purpose
of making the adjustment as provided in this subdivision all of the rate brackets provided
in subdivision 2c shall be the rate brackets as they existed for taxable years beginning after
December 31, 2012, and before January 1, 2014deleted text end new text begin as provided in section 270C.22. The statutory
year is taxable year 2019new 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.
deleted text begin
(b) The commissioner shall adjust the rate brackets and by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section
1(f)(3)(B) the word "2012" shall be substituted for the word "1992." For 2014, the
commissioner shall then determine the percent change from the 12 months ending on August
31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent year, from
the 12 months ending on August 31, 2012, to the 12 months ending on August 31 of the
year preceding the taxable year. 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.
deleted text end
deleted text begin
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.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for adjustments beginning with taxable
years beginning after December 31, 2019.
new text end
Sec. 34.
Minnesota Statutes 2018, section 290.067, subdivision 2b, is amended to read:
Subd. 2b.
Inflation adjustment.
The commissioner shallnew text begin annuallynew text end adjust the dollar
amount of the income threshold at which the maximum credit begins to be reduced under
subdivision 1 deleted text begin 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 "2016" shall be substituted
for the word "1992." For 2018, the commissioner shall then determine the percent change
from the 12 months ending on August 31, 2016, to the 12 months ending on August 31,
2017, and in each subsequent year, from the 12 months ending on August 31, 2016, to the
12 months ending on August 31 of the year preceding the taxable year. The determination
of the commissioner pursuant to this subdivision must not be considered a "rule" and is not
subject to the Administrative Procedure Act contained in chapter 14. The threshold amount
as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, the amount
is rounded up to the nearest $10 amountdeleted text end new text begin as provided in section 270C.22. The statutory year
is taxable year 2019new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for adjustments beginning with taxable
years beginning after December 31, 2019.
new text end
Sec. 35.
Minnesota Statutes 2018, section 290.0671, subdivision 7, is amended to read:
Subd. 7.
Inflation adjustment.
Thenew text begin commissioner shall annually adjust thenew text end earned
income amounts used to calculate the credit and the deleted text begin incomedeleted text end new text begin phase-outnew text end thresholds deleted text begin at which
the maximum credit begins to be reduceddeleted text end in subdivision 1 deleted text begin must be adjusted for inflation.
The commissioner shall adjust by the percentage determined pursuant to the provisions of
section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2013"
shall be substituted for the word "1992." For 2015, the commissioner shall then determine
the percent change from the 12 months ending on August 31, 2013, to the 12 months ending
on August 31, 2014, and in each subsequent year, from the 12 months ending on August
31, 2013, to the 12 months ending on August 31 of the year preceding the taxable year. The
earned income thresholds as adjusted for inflation must be rounded to the nearest $10
amount. If the amount ends in $5, the amount is rounded up to the nearest $10 amount. The
determination of the commissioner under this subdivision is not a rule under the
Administrative Procedure Actdeleted text end new text begin as provided in section 270C.22. The statutory year is taxable
year 2019new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for adjustments for taxable years
beginning after December 31, 2019.
new text end
Sec. 36.
Minnesota Statutes 2018, section 290.0672, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Long-term care insurance" means a policy that:
(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding
the adjusted gross income test; or meets the requirements given in section 62A.46; or provides
similar coverage issued under the laws of another jurisdiction; and
(2) has a lifetime long-term care benefit limit of not less than $100,000; and
(3) has been offered in compliance with the inflation protection requirements of section
62S.23.
(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
(d) "Premiums deducted in determining deleted text begin federaldeleted text end taxablenew text begin netnew text end income" means the lesser of
(1) long-term care insurance premiums that qualify as deductions under section 213 of the
Internal Revenue Code; and (2) the total amount deductible for medical deleted text begin caredeleted text end new text begin expensesnew text end under
section 213 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 37.
Minnesota Statutes 2018, section 290.0672, subdivision 2, is amended to read:
Subd. 2.
Credit.
A taxpayer is allowed a credit against the tax imposed by this chapter
for long-term care insurance policy premiums paid during the tax year. The credit for each
policy equals 25 percent of premiums paid to the extent not deducted in determining deleted text begin federaldeleted text end
taxablenew text begin netnew text end income. A taxpayer may claim a credit for only one policy for each qualified
beneficiary. A maximum of $100 applies to each qualified beneficiary. The maximum total
credit allowed per year is $200 for married couples filing joint returns and $100 for all other
filers. For a nonresident or part-year resident, the credit determined under this section must
be allocated based on the percentage calculated under section 290.06, subdivision 2c,
paragraph (e).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 38.
Minnesota Statutes 2018, section 290.0681, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Account" means the historic credit administration account in the special revenue
fund.
(c) "Office" means the State Historic Preservation Office of the Department of
Administration.
(d) "Project" means rehabilitation of a certified historic structure, as defined in section
47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is allowed a
federal credit.
(e) "Federal credit" means the credit allowed under section deleted text begin 47(a)(2)deleted text end new text begin 47(a)new text end of the Internal
Revenue Codenew text begin , except that the amount allowed is deemed to be allocated in the taxable year
that the project is placed in servicenew text end .
(f) "Placed in service" has the meaning used in section 47 of the Internal Revenue Code.
(g) "Qualified rehabilitation expenditures" has the meaning given in section 47 of the
Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for applications for allocation
certificates submitted after December 31, 2017.
new text end
Sec. 39.
Minnesota Statutes 2018, section 290.0681, subdivision 2, is amended to read:
Subd. 2.
Credit or grant allowed; certified historic structure.
(a) A credit is allowed
against the tax imposed under this chapter equal to not more than 100 percent of the credit
allowed under section deleted text begin 47(a)(2)deleted text end new text begin 47(a)new text end of the Internal Revenue Code for a project. new text begin The credit
is payable in five equal yearly installments beginning with the year the project is placed in
service. new text end To qualify for the credit:
(1) the project must receive Part 3 certification and be placed in service during the taxable
year; and
(2) the taxpayer must be allowed the federal credit and be issued a credit certificate for
the taxable year as provided in subdivision 4.
(b) The commissioner of administration may pay a grant in lieu of the credit. The grant
equals 90 percent of the credit that would be allowed for the project.new text begin The grant is payable
in five equal yearly installments beginning with the year the project is placed in service.
new text end
(c) In lieu of the credit under paragraph (a), an insurance company may claim a credit
against the insurance premiums tax imposed under chapter 297I.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for applications for allocation
certificates submitted after December 31, 2017.
new text end
Sec. 40.
Minnesota Statutes 2018, section 290.0681, subdivision 3, is amended to read:
Subd. 3.
Applications; allocations.
(a) To qualify for a credit or grant under this section,
the developer of a project must apply to the office before the rehabilitation begins. The
application must contain the information and be in the form prescribed by the office. The
office may collect a fee for application of up to 0.5 percent of qualified rehabilitation
expenditures, up to $40,000, based on estimated qualified rehabilitation expenditures, to
offset costs associated with personnel and administrative expenses related to administering
the credit and preparing the economic impact report in subdivision 9. Application fees are
deposited in the account. The application must indicate if the application is for a credit or
a grant in lieu of the credit or a combination of the two and designate the taxpayer qualifying
for the credit or the recipient of the grant.
(b) Upon approving an application for credit, the office shall issue allocation certificates
that:
(1) verify eligibility for the credit or grant;
(2) state the amount of credit or grant anticipated with the project, with the credit amount
equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated
in the application;
(3) state that the credit or grant allowed may increase or decrease if the federal credit
the project receives at the time it is placed in service is different than the amount anticipated
at the time the allocation certificate is issued; and
(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or
grant recipient is entitled to receive new text begin one-fifth of the total amount of either new text end the credit or new text begin the
new text end grant at the time the project is placed in service, provided that date is within three calendar
years following the issuance of the allocation certificate.
(c) The office, in consultation with the commissioner, shall determine if the project is
eligible for a credit or a grant under this section and must notify the developer in writing
of its determination. Eligibility for the credit is subject to review and audit by the
commissioner.
(d) The federal credit recapture and repayment requirements under section 50 of the
Internal Revenue Code do not apply to the credit allowed under this section.
(e) Any decision of the office under paragraph (c) may be challenged as a contested case
under chapter 14. The contested case proceeding must be initiated within 45 days of the
date of written notification by the office.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for applications for allocation
certificates submitted after December 31, 2017.
new text end
Sec. 41.
Minnesota Statutes 2018, section 290.0681, subdivision 4, is amended to read:
Subd. 4.
Credit certificates; grants.
(a)(1) The developer of a project for which the
office has issued an allocation certificate must notify the office when the project is placed
in service. Upon verifying that the project has been placed in service, and was allowed a
federal credit, the office must issue a credit certificate to the taxpayer designated in the
application or must issue a grant to the recipient designated in the application. The credit
certificate must state the amount of the credit.
(2) The credit amount equals the federal credit allowed for the project.
(3) The grant amount equals 90 percent of the federal credit allowed for the project.
(b) The recipient of a credit certificate may assign the certificate to another taxpayernew text begin
before the first one-fifth payment is claimednew text end , which is then allowed the credit under this
section or section 297I.20, subdivision 3. An assignment is not valid unless the assignee
notifies the commissioner within 30 days of the date that the assignment is made. The
commissioner shall prescribe the forms necessary for notifying the commissioner of the
assignment of a credit certificate and for claiming a credit by assignment.
(c) Credits passed through to partners, members, shareholders, or owners pursuant to
subdivision 5 are not an assignment of a credit certificate under this subdivision.
(d) A grant agreement between the office and the recipient of a grant may allow the
grant to be issued to another individual or entity.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for applications for allocation
certificates submitted after December 31, 2017.
new text end
Sec. 42.
Minnesota Statutes 2018, section 290.0802, subdivision 2, is amended to read:
Subd. 2.
Subtraction.
(a) A qualified individual is allowed a subtraction from federal
deleted text begin taxabledeleted text end new text begin adjusted grossnew text end income of the individual's subtraction base amount. The excess of
the subtraction base amount over the taxable net income computed without regard to the
subtraction for the elderly or disabled under section 290.0132, subdivision 5, may be used
to reduce the amount of a lump sum distribution subject to tax under section 290.032.
(b)(1) The initial subtraction base amount equals
(i) $12,000 for a married taxpayer filing a joint return if a spouse is a qualified individual,
(ii) $9,600 for a single taxpayer, and
(iii) $6,000 for a married taxpayer filing a separate federal return.
(2) The qualified individual's initial subtraction base amount, then, must be reduced by
the sum of nontaxable retirement and disability benefits and one-half of the amount of
adjusted gross income in excess of the following thresholds:
(i) $18,000 for a married taxpayer filing a joint return if both spouses are qualified
individuals,
(ii) $14,500 for a single taxpayer or for a married couple filing a joint return if only one
spouse is a qualified individual, and
(iii) $9,000 for a married taxpayer filing a separate federal return.
(3) In the case of a qualified individual who is under the age of 65, the maximum amount
of the subtraction base may not exceed the taxpayer's disability income.
(4) The resulting amount is the subtraction base amount.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 43.
new text begin
[290.0803] STANDARD OR ITEMIZED DEDUCTION.
new text end
new text begin Subdivision 1. new text end
new text begin Election. new text end
new text begin
An individual may elect to claim a state itemized deduction in
lieu of a state standard deduction. However, in the case of a married individual filing a
separate return, if one spouse elects to claim state itemized deductions, the other spouse is
not allowed a state standard deduction.
new text end
new text begin Subd. 2. new text end
new text begin Subtraction. new text end
new text begin
Based on the election under subdivision 1, individuals are allowed
to subtract from federal adjusted gross income the state standard deduction or the state
itemized deduction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 44.
Minnesota Statutes 2018, section 290.091, subdivision 2, is amended to read:
Subd. 2.
Definitions.
For purposes of the tax imposed by this section, the following
terms have the meanings given.
(a) "Alternative minimum taxable income" means the sum of the following for the taxable
year:
(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
taxable income, but excluding:
(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
(ii) the medical expense deduction;
(iii) the casualty, theft, and disaster loss deduction; and
(iv) the impairment-related work expenses of a disabled person;
(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2; and
(6) the amount of addition required by section 290.0131, subdivisions 9 to 11new text begin and 16new text end ;
new text begin
(7) the deduction allowed under section 199A of the Internal Revenue Code;
new text end
less the sum of the amounts determined under the following:
(i) interest income as defined in section 290.0132, subdivision 2;
(ii) an overpayment of state income tax as provided by section 290.0132, subdivision
3, to the extent included in federal alternative minimum taxable income;
(iii) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing federal adjusted gross income;
(iv) amounts subtracted from federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end income as provided by
section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, and 26new text begin to 30new text end ; deleted text begin and
deleted text end
(v) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c)deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(vi) the amount that would have been an allowable deduction under section 165(h) of
the Internal Revenue Code, as amended through December 16, 2016, and that was taken as
a state itemized deduction under section 290.01, subdivision 29a.
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 Codenew text begin , except that alternative minimum
taxable income must be increased by the amount of the addition under section 290.0131,
subdivision 15new text end .
(b) "Investment interest" means investment interest as defined in section 163(d)(3) of
the Internal Revenue Code.
(c) "Net minimum tax" means the minimum tax imposed by this section.
(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
under this chapter.
(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 45.
Minnesota Statutes 2018, section 290.0921, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) For purposes of this section, the following terms have the
meanings given them.
(b) "Alternative minimum taxable net income" is alternative minimum taxable income,
(1) less the exemption amount, and
(2) apportioned or allocated to Minnesota under section 290.17, 290.191, or 290.20.
(c) The "exemption amount" is $40,000, reduced, but not below zero, by 25 percent of
the excess of alternative minimum taxable income over $150,000.
(d) "Minnesota alternative minimum taxable income" is alternative minimum taxable
net income, less the deductions for alternative tax net operating loss under subdivision 4;
and dividends received under subdivision 6. The sum of the deductions under this paragraph
may not exceed 90 percent of alternative minimum taxable net income. This limitation does
not apply to:
(1) a deduction for dividends paid to or received from a corporation which is subject to
tax under section 290.36 and which is a member of an affiliated group of corporations as
defined by the Internal Revenue Code; or
(2) a deduction for dividends received from a property and casualty insurer as defined
under section 60A.60, subdivision 8, which is a member of an affiliated group of corporations
as defined by the Internal Revenue Code and either: (i) the dividend is eliminated in
consolidation under Treasury Regulation 1.1502-14(a), as amended through December 31,
1989; or (ii) the dividend is deducted under an election under section 243(b) of the Internal
Revenue Code.
new text begin
(e) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended
through December 16, 2016.
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, 2018.
new text end
Sec. 46.
Minnesota Statutes 2018, 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) The portion of the depreciation deduction allowed for federal income tax purposes
under section 168(k) of the Internal Revenue Code that is required as an addition under
section 290.0133, subdivision 11, is disallowed in determining alternative minimum taxable
income.
(2) The subtraction for depreciation allowed under section 290.0134, subdivision 13, is
allowed as a depreciation deduction in determining alternative minimum taxable income.
(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
of the Internal Revenue Code does not apply.
(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
Revenue Code does not apply.
(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue Code
does not apply.
(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
Revenue Code does not apply.
(7) The tax preference for charitable contributions of appreciated property under section
57(a)(6) of the Internal Revenue Code does not apply.
(8) For purposes of calculating the adjustment for adjusted current earnings in section
56(g) of the Internal Revenue Code, the term "alternative minimum taxable income" as it
is used in section 56(g) of the Internal Revenue Code, means alternative minimum taxable
income as defined in this subdivision, determined without regard to the adjustment for
adjusted current earnings in section 56(g) of the Internal Revenue Code.
(9) For purposes of determining the amount of adjusted current earnings under section
56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 56(g)(4)
of the Internal Revenue Code with respect to (i) the amount of foreign dividend gross-up
subtracted as provided in section 290.0134, subdivision 2, or (ii) the amount of refunds of
income, excise, or franchise taxes subtracted as provided in section 290.0134, subdivision
8.
(10) Alternative minimum taxable income excludes the income from operating in a job
opportunity building zone as provided under section 469.317.
Items of tax preference must not be reduced below zero as a result of the modifications
in this subdivision.
new text begin
(11) A subtraction is allowed for deferred foreign income as provided in section 290.0134,
subdivision 18.
new text end
new text begin
(12) A subtraction is allowed for global intangible low-taxed income as provided in
section 290.0134, subdivision 17.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
The addition of clause (11) is effective retroactively for taxable
years beginning after December 31, 2016. The addition of clause (12) is effective
retroactively for taxable years beginning after December 31, 2017.
new text end
Sec. 47.
Minnesota Statutes 2018, section 290.17, subdivision 2, is amended to read:
Subd. 2.
Income not derived from conduct of a trade or business.
The income of a
taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
business must be assigned in accordance with paragraphs (a) to (f):
(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section
3401(a) deleted text begin anddeleted text end new text begin ,new text end (f)new text begin , and (i)new text end of the Internal Revenue Code is assigned to this state if, and to the
extent that, the work of the employee is performed within it; all other income from such
sources is treated as income from sources without this state.
Severance pay shall be considered income from labor or personal or professional services.
(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete
or entertainer, income from compensation for labor or personal services performed within
this state shall be determined in the following manner:
(i) the amount of income to be assigned to Minnesota for an individual who is a
nonresident salaried athletic team employee shall be determined by using a fraction in which
the denominator contains the total number of days in which the individual is under a duty
to perform for the employer, and the numerator is the total number of those days spent in
Minnesota. For purposes of this paragraph, off-season training activities, unless conducted
at the team's facilities as part of a team imposed program, are not included in the total number
of duty days. Bonuses earned as a result of play during the regular season or for participation
in championship, play-off, or all-star games must be allocated under the formula. Signing
bonuses are not subject to allocation under the formula if they are not conditional on playing
any games for the team, are payable separately from any other compensation, and are
nonrefundable; and
(ii) the amount of income to be assigned to Minnesota for an individual who is a
nonresident, and who is an athlete or entertainer not listed in item (i), for that person's athletic
or entertainment performance in Minnesota shall be determined by assigning to this state
all income from performances or athletic contests in this state.
(3) For purposes of this section, amounts received by a nonresident as "retirement income"
as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public
Law 104-95, are not considered income derived from carrying on a trade or business or
from wages or other compensation for work an employee performed in Minnesota, and are
not taxable under this chapter.
(b) Income or gains from tangible property located in this state that is not employed in
the business of the recipient of the income or gains must be assigned to this state.
(c) Income or gains from intangible personal property not employed in the business of
the recipient of the income or gains must be assigned to this state if the recipient of the
income or gains is a resident of this state or is a resident trust or estate.
Gain on the sale of a partnership interest is allocable to this state in the ratio of the
original cost of partnership tangible property in this state to the original cost of partnership
tangible property everywhere, determined at the time of the sale. If more than 50 percent
of the value of the partnership's assets consists of intangibles, gain or loss from the sale of
the partnership interest is allocated to this state in accordance with the sales factor of the
partnership for its first full tax period immediately preceding the tax period of the partnership
during which the partnership interest was sold.
Gain on the sale of an interest in a single member limited liability company that is
disregarded for federal income tax purposes is allocable to this state as if the single member
limited liability company did not exist and the assets of the limited liability company are
personally owned by the sole member.
Gain on the sale of goodwill or income from a covenant not to compete that is connected
with a business operating all or partially in Minnesota is allocated to this state to the extent
that the income from the business in the year preceding the year of sale was allocable to
Minnesota under subdivision 3.
When an employer pays an employee for a covenant not to compete, the income allocated
to this state is in the ratio of the employee's service in Minnesota in the calendar year
preceding leaving the employment of the employer over the total services performed by the
employee for the employer in that year.
(d) Income from winnings on a bet made by an individual while in Minnesota is assigned
to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision
2, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).
(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
(f) For the purposes of this section, working as an employee shall not be considered to
be conducting a trade or business.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for wages paid after December 31, 2018.
new text end
Sec. 48.
Minnesota Statutes 2018, section 290.21, subdivision 4, is amended to read:
Subd. 4.
Dividends received from another corporation.
(a)(1) Eighty percent of
dividends received by a corporation during the taxable year from another corporation, in
which the recipient owns 20 percent or more of the stock, by vote and value, not including
stock described in section 1504(a)(4) of the Internal Revenue Code when the corporate
stock with respect to which dividends are paid does not constitute the stock in trade of the
taxpayer or would not be included in the inventory of the taxpayer, or does not constitute
property held by the taxpayer primarily for sale to customers in the ordinary course of the
taxpayer's trade or business, or when the trade or business of the taxpayer does not consist
principally of the holding of the stocks and the collection of the income and gains therefrom;
and
(2)(i) the remaining 20 percent of dividends if the dividends received are the stock in
an affiliated company transferred in an overall plan of reorganization and the dividend is
eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as amended
through December 31, 1989;
(ii) the remaining 20 percent of dividends if the dividends are received from a corporation
which is subject to tax under section 290.36 and which is a member of an affiliated group
of corporations as defined by the Internal Revenue Code and the dividend is eliminated in
consolidation under Treasury Department Regulation 1.1502-14(a), as amended through
December 31, 1989, or is deducted under an election under section 243(b) of the Internal
Revenue Code; or
(iii) the remaining 20 percent of the dividends if the dividends are received from a
property and casualty insurer as defined under section 60A.60, subdivision 8, which is a
member of an affiliated group of corporations as defined by the Internal Revenue Code and
either: (A) the dividend is eliminated in consolidation under Treasury Regulation
1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted
under an election under section 243(b) of the Internal Revenue Code.
(b) Seventy percent of dividends received by a corporation during the taxable year from
another corporation in which the recipient owns less than 20 percent of the stock, by vote
or value, not including stock described in section 1504(a)(4) of the Internal Revenue Code
when the corporate stock with respect to which dividends are paid does not constitute the
stock in trade of the taxpayer, or does not constitute property held by the taxpayer primarily
for sale to customers in the ordinary course of the taxpayer's trade or business, or when the
trade or business of the taxpayer does not consist principally of the holding of the stocks
and the collection of income and gain therefrom.
(c) The dividend deduction provided in this subdivision shall be allowed only with
respect to dividends that are included in a corporation's Minnesota taxable net income for
the taxable year.
The dividend deduction provided in this subdivision does not apply to a dividend from
a corporation which, for the taxable year of the corporation in which the distribution is made
or for the next preceding taxable year of the corporation, is a corporation exempt from tax
under section 501 of the Internal Revenue Code.
The dividend deduction provided in this subdivision does not apply to a dividend received
from a real estate investment trust as defined in section 856 of the Internal Revenue Code.
The dividend deduction provided in this subdivision applies to the amount of regulated
investment company dividends only to the extent determined under section 854(b) of the
Internal Revenue Code.
The dividend deduction provided in this subdivision shall not be allowed with respect
to any dividend for which a deduction is not allowed under the provisions of section 246(c)new text begin
or 246Anew text end of the Internal Revenue Code.
(d) If dividends received by a corporation that does not have nexus with Minnesota under
the provisions of Public Law 86-272 are included as income on the return of an affiliated
corporation permitted or required to file a combined report under section 290.17, subdivision
4, or 290.34, subdivision 2, then for purposes of this subdivision the determination as to
whether the trade or business of the corporation consists principally of the holding of stocks
and the collection of income and gains therefrom shall be made with reference to the trade
or business of the affiliated corporation having a nexus with Minnesota.
(e) The deduction provided by this subdivision does not apply if the dividends are paid
by a FSC as defined in section 922 of the Internal Revenue Code.
(f) If one or more of the members of the unitary group whose income is included on the
combined report received a dividend, the deduction under this subdivision for each member
of the unitary business required to file a return under this chapter is the product of: (1) 100
percent of the dividends received by members of the group; (2) the percentage allowed
pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business income
apportionable to this state for the taxable year under section 290.191 or 290.20.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 49.
Minnesota Statutes 2018, section 290.34, is amended by adding a subdivision to
read:
new text begin Subd. 5. new text end
new text begin Insurance companies; interest expense limitation. new text end
new text begin
To be consistent with the
federal treatment of the interest expense limitation under section 163(j) of the Internal
Revenue Code for an affiliated group that includes an insurance company taxable under
chapter 297I and exempt from taxation under section 290.05, subdivision 1, clause (c), the
rules under this subdivision apply. In that case, the interest expense limitation under section
163(j) of the Internal Revenue Code must be computed for the corporation subject to tax
under this chapter using the adjusted taxable income of the insurance companies that are
part of the affiliated group and taxed under chapter 297I.
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, 2018.
new text end
Sec. 50.
Minnesota Statutes 2018, section 290.92, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(1) Wages. For purposes of this section, the term "wages"
means the same as that term is defined in section 3401(a) deleted text begin anddeleted text end new text begin ,new text end (f)new text begin , and (i)new text end of the Internal
Revenue Code.
(2) Payroll period. For purposes of this section the term "payroll period" means a period
for which a payment of wages is ordinarily made to the employee by the employee's
employer, and the term "miscellaneous payroll period" means a payroll period other than a
daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll
period.
(3) Employee. For purposes of this section the term "employee" means any resident
individual performing services for an employer, either within or without, or both within and
without the state of Minnesota, and every nonresident individual performing services within
the state of Minnesota, the performance of which services constitute, establish, and determine
the relationship between the parties as that of employer and employee. As used in the
preceding sentence, the term "employee" includes an officer of a corporation, and an officer,
employee, or elected official of the United States, a state, or any political subdivision thereof,
or the District of Columbia, or any agency or instrumentality of any one or more of the
foregoing.
(4) Employer. For purposes of this section the term "employer" means any person,
including individuals, fiduciaries, estates, trusts, partnerships, limited liability companies,
and corporations transacting business in or deriving any income from sources within the
state of Minnesota for whom an individual performs or performed any service, of whatever
nature, as the employee of such person, except that if the person for whom the individual
performs or performed the services does not have control of the payment of the wages for
such services, the term "employer," except for purposes of paragraph (1), means the person
having control of the payment of such wages. As used in the preceding sentence, the term
"employer" includes any corporation, individual, estate, trust, or organization which is
exempt from taxation under section 290.05 and further includes, but is not limited to, officers
of corporations who have control, either individually or jointly with another or others, of
the payment of the wages.
(5) Number of withholding exemptions claimed. For purposes of this section, the term
"number of withholding exemptions claimed" means the number of withholding exemptions
claimed in a withholding exemption certificate in effect under subdivision 5, except that if
no such certificate is in effect, the number of withholding exemptions claimed shall be
considered to be zero.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 51.
Minnesota Statutes 2018, section 290A.03, subdivision 3, is amended to read:
Subd. 3.
Income.
(a) "Income" means the sum of the following:
(1) federal adjusted gross income as defined in the Internal Revenue Code; and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;
(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;
(xiii) nontaxable scholarship or fellowship grants;
(xiv) deleted text begin the amount of deduction allowed under section 199 of the Internal Revenue Codedeleted text end new text begin
alimony received to the extent not included in the recipient's incomenew text end ;
(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and
(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.
(b) "Income" does not include:
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;
(4) surplus food or other relief in kind supplied by a governmental agency;
(5) relief granted under this chapter;
(6) child support payments received under a temporary or final decree of dissolution or
legal separation; deleted text begin or
deleted text end
(7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16new text begin ; or
new text end
new text begin (8) alimony paidnew text end .
(c) The sum of the following amounts may be subtracted from income:
(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(5) for the claimant's fifth dependent, the exemption amount; and
(6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or
before December 31 of the year for which the taxes were levied or rent paid, the exemption
amount.
(d) For purposes of this subdivision, thenew text begin following terms have the meanings given:
new text end
new text begin (1) new text end "exemption amount" means deleted text begin the exemption amount under section 151(d) of the Internal
Revenue Codedeleted text end new text begin the personal exemption amount under section 290.0138, paragraph (a),new text end for
the taxable year for which the income is reported;
new text begin (2) new text end "retirement base amount" means the deductible amount for the taxable year for the
claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
to whether the claimant or spouse claimed a deduction; and
new text begin (3) new text end "traditional or Roth style retirement account or plan" means retirement plans under
sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for property tax refunds based on property
taxes payable in 2020, and rent paid in 2019.
new text end
Sec. 52.
Minnesota Statutes 2018, section 290A.03, subdivision 12, is amended to read:
Subd. 12.
Gross rent.
(a) "Gross rent" means rental paid for the right of occupancy, at
arm's length, of a homestead, exclusive of charges for any medical services furnished by
the landlord as a part of the rental agreement, whether expressly set out in the rental
agreement or not.
(b) The gross rent of a resident of a nursing home or intermediate care facility is deleted text begin $350deleted text end new text begin
$490new text end per month. The gross rent of a resident of an adult foster care home is deleted text begin $550deleted text end new text begin $760new text end per
month. Beginning for rent paid in deleted text begin 2002deleted text end new text begin 2019new text end , the commissioner shall annually adjust deleted text begin for
inflationdeleted text end the deleted text begin gross rentdeleted text end amounts deleted text begin stateddeleted text end in this paragraphnew text begin as provided under section 270C.22.
The statutory year is 2020new text end . deleted text begin The adjustment must be made in accordance with section 1(f)
of the Internal Revenue Code, except that for purposes of this paragraph the percentage
increase shall be determined from the year ending on June 30, 2001, to the year ending on
June 30 of the year in which the rent is paid. The commissioner shall round the gross rents
to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to
the next $10 amount. The determination of the commissioner under this paragraph is not a
rule under the Administrative Procedure Act.
deleted text end
(c) If the landlord and tenant have not dealt with each other at arm's length and the
commissioner determines that the gross rent charged was excessive, the commissioner may
adjust the gross rent to a reasonable amount for purposes of this chapter.
(d) Any amount paid by a claimant residing in property assessed pursuant to section
273.124, subdivision 3, 4, 5, or 6 for occupancy in that property shall be excluded from
gross rent for purposes of this chapter. However, property taxes imputed to the homestead
of the claimant or the dwelling unit occupied by the claimant that qualifies for homestead
treatment pursuant to section 273.124, subdivision 3, 4, 5, or 6 shall be included within the
term "property taxes payable" as defined in subdivision 13, notwithstanding the fact that
ownership is not in the name of the claimant.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for adjustments beginning with refunds
based on rent paid in 2019.
new text end
Sec. 53.
Minnesota Statutes 2018, section 290A.03, subdivision 15, is amended to read:
Subd. 15.
Internal Revenue Code.
"Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through December deleted text begin 16, 2016deleted text end new text begin 31, 2018new 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 in 2020, and rent paid in 2019.
new text end
Sec. 54.
Minnesota Statutes 2018, section 290A.04, subdivision 4, is amended to read:
Subd. 4.
Inflation adjustment.
deleted text begin (a) Beginning for property tax refunds payable in calendar
year 2002,deleted text end The commissioner shall annually adjust the dollar amounts of the income
thresholds and the maximum refunds under subdivisions 2 and 2a deleted text begin for inflation. The
commissioner shall make the inflation adjustments in accordance with section 1(f) of the
Internal Revenue Code, except that for purposes of this subdivision the percentage increase
shall be determined as provided in this subdivisiondeleted text end new text begin as provided in section 270C.22new text end .
deleted text begin
(b) In adjusting the dollar amounts of the income thresholds and the maximum refunds
under subdivision 2 for inflation, the percentage increase shall be determined from the year
ending on June 30, 2013, to the year ending on June 30 of the year preceding that in which
the refund is payable.
deleted text end
deleted text begin
(c) In adjusting the dollar amounts of the income thresholds and the maximum refunds
under subdivision 2a for inflation, the percentage increase shall be determined from the
year ending on June 30, 2013, to the year ending on June 30 of the year preceding that in
which the refund is payable.
deleted text end
deleted text begin
(d) The commissioner shall use the appropriate percentage increase to annually adjust
the income thresholds and maximum refunds under subdivisions 2 and 2a for inflation
without regard to whether or not the income tax brackets are adjusted for inflation in that
deleted text end
deleted text begin
year. The commissioner shall round the thresholds and the maximum amounts, as adjusted
to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to
the next $10 amount.
deleted text end
deleted text begin
(e) The commissioner shall annually announce the adjusted refund schedule at the same
time provided under section 290.06. The determination of the commissioner under this
subdivision is not a rule under the Administrative Procedure Act.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refunds based on rent paid in 2020,
and property taxes paid in 2021.
new text end
Sec. 55.
Minnesota Statutes 2018, section 291.005, subdivision 1, is amended to read:
Subdivision 1.
Scope.
Unless the context otherwise clearly requires, the following terms
used in this chapter shall have the following meanings:
(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.
(2) "Federal gross estate" means the gross estate of a decedent as required to be valued
and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
increased by the value of any property in which the decedent had a qualifying income interest
for life and for which an election was made under section 291.03, subdivision 1d, for
Minnesota estate tax purposes, but was not made for federal estate tax purposes.
(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
as amended through December deleted text begin 16, 2016deleted text end new text begin 31, 2018new text end .
(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included in the estate which has its situs outside Minnesota,
and (b) including any property omitted from the federal gross estate which is includable in
the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
(5) "Nonresident decedent" means an individual whose domicile at the time of death
was not in Minnesota.
(6) "Personal representative" means the executor, administrator or other person appointed
by the court to administer and dispose of the property of the decedent. If there is no executor,
administrator or other person appointed, qualified, and acting within this state, then any
person in actual or constructive possession of any property having a situs in this state which
is included in the federal gross estate of the decedent shall be deemed to be a personal
representative to the extent of the property and the Minnesota estate tax due with respect
to the property.
(7) "Resident decedent" means an individual whose domicile at the time of death was
in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply
to determinations of domicile under this chapter.
(8) "Situs of property" means, with respect to:
(i) real property, the state or country in which it is located;
(ii) tangible personal property, the state or country in which it was normally kept or
located at the time of the decedent's death or for a gift of tangible personal property within
three years of death, the state or country in which it was normally kept or located when the
gift was executed;
(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
Code, owned by a nonresident decedent and that is normally kept or located in this state
because it is on loan to an organization, qualifying as exempt from taxation under section
501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
(iv) intangible personal property, the state or country in which the decedent was domiciled
at death or for a gift of intangible personal property within three years of death, the state or
country in which the decedent was domiciled when the gift was executed.
For a nonresident decedent with an ownership interest in a pass-through entity with
assets that include real or tangible personal property, situs of the real or tangible personal
property, including qualified works of art, is determined as if the pass-through entity does
not exist and the real or tangible personal property is personally owned by the decedent. If
the pass-through entity is owned by a person or persons in addition to the decedent, ownership
of the property is attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.
(9) "Pass-through entity" includes the following:
(i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;
(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
(iii) a single-member limited liability company or similar entity, regardless of whether
it is taxed as an association or is disregarded for federal income tax purposes under Code
of Federal Regulations, title 26, section 301.7701-3; or
(iv) a trust to the extent the property is deleted text begin includibledeleted text end new text begin includablenew text end in the decedent's federal
gross estate; but excludes
(v) an entity whose ownership interest securities are traded on an exchange regulated
by the Securities and Exchange Commission as a national securities exchange under section
6 of the Securities Exchange Act, United States Code, title 15, section 78f.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time the
changes become effective for federal purposes.
new text end
Sec. 56.
Minnesota Statutes 2018, section 297A.68, subdivision 25, is amended to read:
Subd. 25.
Sale of property used in a trade or business.
(a) The sale of tangible personal
property primarily used in a trade or business is exempt if the sale is not made in the normal
course of business of selling that kind of property and if one of the following conditions is
satisfied:
(1) the sale occurs in a transaction subject to or described in section 118, 331, 332, 336,
337, 338, 351, 355, 368, 721, 731, 1031, or 1033 of the Internal Revenue Codenew text begin , as amended
through December 16, 2016new text end ;
(2) the sale is between members of a controlled group as defined in section 1563(a) of
the Internal Revenue Code;
(3) the sale is a sale of farm machinery;
(4) the sale is a farm auction sale;
(5) the sale is a sale of substantially all of the assets of a trade or business; or
(6) the total amount of gross receipts from the sale of trade or business property made
during the calendar month of the sale and the preceding 11 calendar months does not exceed
$1,000.
The use, storage, distribution, or consumption of tangible personal property acquired as
a result of a sale exempt under this subdivision is also exempt.
(b) For purposes of this subdivision, the following terms have the meanings given.
(1) A "farm auction" is a public auction conducted by a licensed auctioneer if substantially
all of the property sold consists of property used in the trade or business of farming and
property not used primarily in a trade or business.
(2) "Trade or business" includes the assets of a separate division, branch, or identifiable
segment of a trade or business if, before the sale, the income and expenses attributable to
the separate division, branch, or identifiable segment could be separately ascertained from
the books of account or record (the lease or rental of an identifiable segment does not qualify
for the exemption).
(3) A "sale of substantially all of the assets of a trade or business" must occur as a single
transaction or a series of related transactions within the 12-month period beginning on the
date of the first sale of assets intended to qualify for the exemption provided in paragraph
(a), clause (5).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for sales and purchases
made after December 31, 2018.
new text end
Sec. 57.
Minnesota Statutes 2018, section 297B.03, is amended to read:
297B.03 EXEMPTIONS.
There is specifically exempted from the provisions of this chapter and from computation
of the amount of tax imposed by it the following:
(1) purchase or use, including use under a lease purchase agreement or installment sales
contract made pursuant to section 465.71, of any motor vehicle by the United States and its
agencies and instrumentalities and by any person described in and subject to the conditions
provided in section 297A.67, subdivision 11;
(2) purchase or use of any motor vehicle by any person who was a resident of another
state or country at the time of the purchase and who subsequently becomes a resident of
Minnesota, provided the purchase occurred more than 60 days prior to the date such person
began residing in the state of Minnesota and the motor vehicle was registered in the person's
name in the other state or country;
(3) purchase or use of any motor vehicle by any person making a valid election to be
taxed under the provisions of section 297A.90;
(4) purchase or use of any motor vehicle previously registered in the state of Minnesota
when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336,
337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Codenew text begin ,
as amended through December 16, 2016new text end ;
(5) purchase or use of any vehicle owned by a resident of another state and leased to a
Minnesota-based private or for-hire carrier for regular use in the transportation of persons
or property in interstate commerce provided the vehicle is titled in the state of the owner or
secured party, and that state does not impose a sales tax or sales tax on motor vehicles used
in interstate commerce;
(6) purchase or use of a motor vehicle by a private nonprofit or public educational
institution for use as an instructional aid in automotive training programs operated by the
institution. "Automotive training programs" includes motor vehicle body and mechanical
repair courses but does not include driver education programs;
(7) purchase of a motor vehicle by an ambulance service licensed under section 144E.10
when that vehicle is equipped and specifically intended for emergency response or for
providing ambulance service;
(8) purchase of a motor vehicle by or for a public library, as defined in section 134.001,
subdivision 2, as a bookmobile or library delivery vehicle;
(9) purchase of a ready-mixed concrete truck;
(10) purchase or use of a motor vehicle by a town for use exclusively for road
maintenance, including snowplows and dump trucks, but not including automobiles, vans,
or pickup trucks;
(11) purchase or use of a motor vehicle by a corporation, society, association, foundation,
or institution organized and operated exclusively for charitable, religious, or educational
purposes, except a public school, university, or library, but only if the vehicle is:
(i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and used
for carrying more than nine persons including the driver; and
(ii) intended to be used primarily to transport tangible personal property or individuals,
other than employees, to whom the organization provides service in performing its charitable,
religious, or educational purpose;
(12) purchase of a motor vehicle for use by a transit provider exclusively to provide
transit service is exempt if the transit provider is either (i) receiving financial assistance or
reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29,
473.388, or 473.405;
(13) purchase or use of a motor vehicle by a qualified business, as defined in section
469.310, located in a job opportunity building zone, if the motor vehicle is principally
garaged in the job opportunity building zone and is primarily used as part of or in direct
support of the person's operations carried on in the job opportunity building zone. The
exemption under this clause applies to sales, if the purchase was made and delivery received
during the duration of the job opportunity building zone. The exemption under this clause
also applies to any local sales and use tax;
(14) purchase of a leased vehicle by the lessee who was a participant in a lease-to-own
program from a charitable organization that is:
(i) described in section 501(c)(3) of the Internal Revenue Code; and
(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and
(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the
provision of medical or dental services by a federally qualified health center, as defined
under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus Budget
Reconciliation Act of 1990.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for sales and purchases
made after December 31, 2018.
new text end
Sec. 58.
Minnesota Statutes 2018, section 462D.06, subdivision 1, is amended to read:
Subdivision 1.
Subtraction.
(a) As provided in section 290.0132, subdivision 25, an
account holder is allowed a subtraction from deleted text begin thedeleted text end federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end income equal
to interest or dividends earned on the first-time home buyer savings account during the
taxable year.
(b) The subtraction under paragraph (a) is allowed each year for the taxable years
including and following the taxable year in which the account was established. No person
other than the account holder is allowed a subtraction under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 59.
Minnesota Statutes 2018, section 462D.06, subdivision 2, is amended to read:
Subd. 2.
Addition.
(a) As provided in section 290.0131, subdivision 14, an account
holder must add to federal deleted text begin taxabledeleted text end new text begin adjusted grossnew text end income the following amounts:
(1) the amount in excess of the total contributions for all taxable years that is withdrawn
and used for other than eligible costs, or for a transfer permitted under section 462D.04,
subdivision 2; and
(2) the amount remaining in the first-time home buyer savings account at the close of
the tenth taxable year that exceeds the total contributions to the account for all taxable years.
(b) For an account that received a transfer under section 462D.04, subdivision 2, the
ten-year period under paragraph (a), clause (2), ends at the close of the earliest taxable year
that applies to either account under that clause.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 60.
Minnesota Statutes 2018, section 469.316, subdivision 1, is amended to read:
Subdivision 1.
Application.
An individual, estate, or trust operating a trade or business
in a job opportunity building zone, and an individual, estate, or trust making a qualifying
investment in a qualified business operating in a job opportunity building zone qualifies for
the exemptions from taxes imposed under chapter 290, as provided in this section. The
exemptions provided under this section apply only to the extent that the income otherwise
would be taxable under chapter 290. Subtractions under this section from new text begin federal adjusted
gross income, new text end federal taxable income, alternative minimum taxable income, or any other
base subject to tax are limited to the amount that otherwise would be included in the tax
base absent the exemption under this section. This section applies only to taxable years
beginning during the duration of the job opportunity building zone.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 61. new text begin REVISOR INSTRUCTION.
new text end
new text begin
The commissioner of revenue must promptly notify the revisor of statutes in writing of
the adjusted statutory year amounts for each of the statutory sections that are indexed for
inflation under Minnesota Statutes, section 270C.22. The revisor shall publish the updated
statutory amounts in the 2019 Supplement of Minnesota Statutes.
new text end
Sec. 62. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2018, sections 290.0131, subdivisions 7, 10, and 11; 290.0133,
subdivisions 12, 13, and 14; and 290.10, subdivision 2,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2019.
new text end
ARTICLE 2
INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES
Section 1.
Minnesota Statutes 2018, section 116J.8737, subdivision 5, is amended to read:
Subd. 5.
Credit allowed.
(a)(1) A qualified investor or qualified fund is eligible for a
credit equal to 25 percent of the qualified investment in a qualified small business.
Investments made by a pass-through entity qualify for a credit only if the entity is a qualified
fund. The commissioner must not allocate more than deleted text begin $15,000,000deleted text end new text begin $5,000,000new text end in credits to
qualified investors or qualified funds for taxable years beginning after December 31, deleted text begin 2013deleted text end new text begin
2018new text end , and before deleted text begin January 1, 2017, and must not allocate more than $10,000,000 in credits
to qualified investors or qualified funds for taxable years beginning after December 31,
2016, and before January 1, 2018deleted text end new text begin January 1, 2020new text end ; and
(2) deleted text begin for taxable years beginning after December 31, 2014, and before January 1, 2018,deleted text end
50 percent must be allocated to credits for qualifying investments in qualified greater
Minnesota businesses and minority- or women-owned qualified small businesses in
Minnesota. Any portion of a taxable year's credits that is reserved for qualifying investments
in greater Minnesota businesses and minority- or women-owned qualified small businesses
in Minnesota that is not allocated by September 30 of the taxable year is available for
allocation to other credit applications beginning on October 1. Any portion of a taxable
year's credits that is not allocated by the commissioner does not cancel and may be carried
forward to subsequent taxable years until all credits have been allocated.
(b) The commissioner may not allocate more than a total maximum amount in credits
for a taxable year to a qualified investor for the investor's cumulative qualified investments
as an individual qualified investor and as an investor in a qualified fund; for married couples
filing joint returns the maximum is $250,000, and for all other filers the maximum is
$125,000. The commissioner may not allocate more than a total of $1,000,000 in credits
over all taxable years for qualified investments in any one qualified small business.
(c) The commissioner may not allocate a credit to a qualified investor either as an
individual qualified investor or as an investor in a qualified fund if, at the time the investment
is proposed:
(1) the investor is an officer or principal of the qualified small business; or
(2) the investor, either individually or in combination with one or more members of the
investor's family, owns, controls, or holds the power to vote 20 percent or more of the
outstanding securities of the qualified small business.
A member of the family of an individual disqualified by this paragraph is not eligible for a
credit under this section. For a married couple filing a joint return, the limitations in this
paragraph apply collectively to the investor and spouse. For purposes of determining the
ownership interest of an investor under this paragraph, the rules under section 267(c) and
267(e) of the Internal Revenue Code apply.
(d) Applications for tax credits for 2010 must be made available on the department's
website by September 1, 2010, and the department must begin accepting applications by
September 1, 2010. Applications for subsequent years must be made available by November
1 of the preceding year.
(e) Qualified investors and qualified funds must apply to the commissioner for tax credits.
Tax credits must be allocated to qualified investors or qualified funds in the order that the
tax credit request applications are filed with the department. The commissioner must approve
or reject tax credit request applications within 15 days of receiving the application. The
investment specified in the application must be made within 60 days of the allocation of
the credits. If the investment is not made within 60 days, the credit allocation is canceled
and available for reallocation. A qualified investor or qualified fund that fails to invest as
specified in the application, within 60 days of allocation of the credits, must notify the
commissioner of the failure to invest within five business days of the expiration of the
60-day investment period.
(f) All tax credit request applications filed with the department on the same day must
be treated as having been filed contemporaneously. If two or more qualified investors or
qualified funds file tax credit request applications on the same day, and the aggregate amount
of credit allocation claims exceeds the aggregate limit of credits under this section or the
lesser amount of credits that remain unallocated on that day, then the credits must be allocated
among the qualified investors or qualified funds who filed on that day on a pro rata basis
with respect to the amounts claimed. The pro rata allocation for any one qualified investor
or qualified fund is the product obtained by multiplying a fraction, the numerator of which
is the amount of the credit allocation claim filed on behalf of a qualified investor and the
denominator of which is the total of all credit allocation claims filed on behalf of all
applicants on that day, by the amount of credits that remain unallocated on that day for the
taxable year.
(g) A qualified investor or qualified fund, or a qualified small business acting on their
behalf, must notify the commissioner when an investment for which credits were allocated
has been made, and the taxable year in which the investment was made. A qualified fund
must also provide the commissioner with a statement indicating the amount invested by
each investor in the qualified fund based on each investor's share of the assets of the qualified
fund at the time of the qualified investment. After receiving notification that the investment
was made, the commissioner must issue credit certificates for the taxable year in which the
investment was made to the qualified investor or, for an investment made by a qualified
fund, to each qualified investor who is an investor in the fund. The certificate must state
that the credit is subject to revocation if the qualified investor or qualified fund does not
hold the investment in the qualified small business for at least three years, consisting of the
calendar year in which the investment was made and the two following years. The three-year
holding period does not apply if:
(1) the investment by the qualified investor or qualified fund becomes worthless before
the end of the three-year period;
(2) 80 percent or more of the assets of the qualified small business is sold before the end
of the three-year period;
(3) the qualified small business is sold before the end of the three-year period;
(4) the qualified small business's common stock begins trading on a public exchange
before the end of the three-year period; or
(5) the qualified investor dies before the end of the three-year period.
(h) The commissioner must notify the commissioner of revenue of credit certificates
issued under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 2.
Minnesota Statutes 2018, section 116J.8737, subdivision 12, is amended to read:
Subd. 12.
Sunset.
This section expires for taxable years beginning after December 31,
deleted text begin 2017deleted text end new text begin 2019new text end , except that reporting requirements under subdivision 6 and revocation of credits
under subdivision 7 remain in effect through deleted text begin 2019deleted text end new text begin 2021new text end for qualified investors and qualified
funds, and through deleted text begin 2021deleted text end new text begin 2023new text end for qualified small businesses, reporting requirements under
subdivision 9 remain in effect through deleted text begin 2022deleted text end new text begin 2024new text end , and the appropriation in subdivision 11
remains in effect through deleted text begin 2021deleted text end new text begin 2023new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 3.
Minnesota Statutes 2018, section 289A.08, is amended by adding a subdivision to
read:
new text begin Subd. 7a. new text end
new text begin Election to file as a C corporation. new text end
new text begin
(a) A qualifying entity may elect to file
a return as a C-option corporation and calculate its tax liability as a corporation. The election
to file a return as a C-option corporation must be made on or before the due date or extended
due date of its return as a C-option corporation. The election is binding for the four taxable
years following the taxable year of the election.
new text end
new text begin
(b) For purposes of this subdivision:
new text end
new text begin
(1) "qualifying entity" means a:
new text end
new text begin
(i) partnership;
new text end
new text begin
(ii) limited liability company; or
new text end
new text begin
(iii) corporation organized under subchapter S of the Internal Revenue Code for federal
income tax purposes including a qualified subsidiary also organized under subchapter S of
the Internal Revenue Code; and
new text end
new text begin
(2) "C-option corporation" means a qualifying entity that has made the election under
paragraph (a).
new text end
new text begin
(c) The election to file as a C-option corporation may only be made by persons who
hold more than 50 percent ownership interest in a qualifying entity. The election to file as
a C-option corporation is binding on all of the persons who have an ownership interest in
the entity.
new text end
new text begin
(d) Tax liability must be calculated by multiplying the Minnesota taxable income of the
qualifying entity by 9.85 percent.
new text end
new text begin
(e) A member's, partner's, or shareholder's adjusted basis in the member's, partner's, or
shareholder's interest in the limited liability company, partnership, or S-corporation is
determined as if the election under this subdivision is not made.
new text end
new text begin
(f) The provisions of subdivision 17 apply to the election under this subdivision.
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, 2018.
new text end
Sec. 4.
Minnesota Statutes 2018, section 289A.31, subdivision 2, is amended to read:
Subd. 2.
Joint income tax returns.
(a) If a joint income tax return is made by a husband
and wife, the liability for the tax is joint and several. A spouse who qualifies for relief from
a liability attributable to an underpayment under section 6015new text begin subsection new text end (b)new text begin or (f)new text end of the
Internal Revenue Code is relieved of the state income tax liability on the underpayment.
(b) In the case of individuals who were a husband and wife prior to the dissolution of
their marriage or their legal separation, or prior to the death of one of the individuals, for
tax liabilities reported on a joint or combined return, the liability of each person is limited
to the proportion of the tax due on the return that equals that person's proportion of the total
tax due if the husband and wife filed separate returns for the taxable year. This provision
is effective only when the commissioner receives written notice of the marriage dissolution,
legal separation, or death of a spouse from the husband or wife. No refund may be claimed
by an ex-spouse, legally separated or widowed spouse for any taxes paid more than 60 days
before receipt by the commissioner of the written notice.
(c) deleted text begin A request for calculation of separate liability pursuant to paragraph (b) for taxes
reported on a return must be made within six years after the due date of the return. For
calculation of separate liability for taxes assessed by the commissioner under section 289A.35
or 289A.37, the request must be made within six years after the date of assessment.deleted text end The
commissioner is not required to calculate separate liabilitynew text begin pursuant to paragraph (b)new text end if the
remaining unpaid liability for which recalculation is requested is $100 or less.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for returns first due for taxable years
beginning after December 31, 2018.
new text end
Sec. 5.
Minnesota Statutes 2018, section 290.01, subdivision 4a, is amended to read:
Subd. 4a.
Financial institution.
(a) "Financial institution" means:
(1) any corporation or other business entity registered (i) under state law as a bank
holding company; (ii) under the federal Bank Holding Company Act of 1956, as amended;
or (iii) as a savings and loan holding company under the federal National Housing Act, as
amended;
(2) a national bank organized and existing as a national bank association pursuant to the
provisions of United States Code, title 12, chapter 2;
(3) a savings association or federal savings bank as defined in United States Code, title
12, section 1813(b)(1);
(4) any bank or thrift institution incorporated or organized under the laws of any state;
(5) any corporation organized under United States Code, title 12, sections 611 to 631;
(6) any agency or branch of a foreign depository as defined under United States Code,
title 12, section 3101;
(7) any corporation or other business entity that is more than 50 percent owned, directly
or indirectly, by any person or business entity described in clauses (1) to (6), other than an
insurance company taxable under chapter 297I;
(8) a corporation or other business entity that derives more than 50 percent of its total
gross income for financial accounting purposes from finance leases. For the purposes of
this clause, "gross income" means the average from the current tax year and immediately
preceding two years and excludes gross income from incidental or occasional transactions.
For purposes of this clause, "finance lease" means any lease transaction that is the functional
equivalent of an extension of credit and that transfers substantially all the benefits and risks
incident to the ownership of property, including any direct financing lease or leverage lease
that meets the criteria of Financial Accounting Standards Board Statement No. 13, accounting
for leases, or any other lease that is accounted for as financing by a lessor under generally
accepted accounting principles; or
(9) any other person or business entity, other than an insurance company deleted text begin taxable under
chapter 297Ideleted text end , that derives more than 50 percent of its gross income from activities that an
entity described in clauses (2) to (6) or (8) is authorized to transact. For the purposes of this
clause, gross income does not include income from nonrecurring, extraordinary items.
(b) The commissioner is authorized to exclude any person from the application of
paragraph (a), clause (9), if the person proves by clear and convincing evidence that the
person's income-producing activity is not in substantial competition with any person described
in paragraph (a), clauses (2) to (6) or (8).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016.
new text end
Sec. 6.
Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to
read:
new text begin Subd. 5c. new text end
new text begin Disqualified captive insurance company. new text end
new text begin
(a) "Captive insurance company"
means a company that:
new text end
new text begin
(1) is licensed as a captive insurance company under the laws of any state or foreign
country; or
new text end
new text begin
(2) derives less than 50 percent of its total premiums for the taxable year from sources
outside of the unitary business, as that term is used in section 290.17.
new text end
new text begin
(b) A captive insurance company is a "disqualified captive insurance company" if the
company:
new text end
new text begin
(1) pays less than 0.5 percent of its total premiums for the taxable year in tax under
chapter 297I or a comparable tax of another state; or
new text end
new text begin
(2) receives less than 50 percent of its gross receipts for the taxable year from premiums.
new text end
new text begin
(c) For purposes of this subdivision, "premiums" means amounts paid for arrangements
that constitute insurance for federal income tax purposes, but excludes return premiums,
premiums for reinsurance assumed from other insurance companies, and any other premiums
that are or would be exempt from taxation under section 297I.05 as a result of their type or
character, if the insurance was for business in Minnesota.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016.
new text end
Sec. 7.
Minnesota Statutes 2018, section 290.0131, is amended by adding a subdivision
to read:
new text begin Subd. 17. new text end
new text begin
Equity and opportunity donations to qualified foundations and qualified
public school foundations.
new text end
new text begin
The amount of the deduction under section 170 of the Internal
Revenue Code that represents contributions to a qualified foundation under section 290.0693
is an addition.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2019.
new text end
Sec. 8.
Minnesota Statutes 2018, section 290.0132, subdivision 4, is amended to read:
Subd. 4.
Education expenses.
(a) Subject to the limits in paragraph (b), the following
amounts paid to others for each qualifying child are a subtraction:
(1) education-related expenses; plus
(2) tuition and fees paid to attend a school described in section 290.0674, subdivision
1, clause (4), that are not included in education-related expenses; less
(3) any deleted text begin amountdeleted text end new text begin amountsnew text end used to claim the deleted text begin creditdeleted text end new text begin creditsnew text end under sectionnew text begin 290.067 ornew text end
290.0674.
(b) The maximum subtraction allowed under this subdivision is:
(1) $1,625 for each qualifying child in new text begin a prekindergarten educational program or in
new text end kindergarten through grade 6; and
(2) $2,500 for each qualifying child in grades 7 through 12.
(c) The definitions in section 290.0674, subdivision 1, apply to this subdivision.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2019.
new text end
Sec. 9.
Minnesota Statutes 2018, section 290.0132, subdivision 26, is amended to read:
Subd. 26.
Social Security benefits.
(a) A portion of new text begin taxable new text end Social Security benefits is
allowed as a subtraction. The subtraction equals the lesser of new text begin taxable new text end Social Security benefits
or a maximum subtraction subject to the limits under paragraphs (b), (c), and (d).
(b) For married taxpayers filing a joint return and surviving spouses, the maximum
subtraction equals deleted text begin $4,500deleted text end new text begin $6,150new text end . The maximum subtraction is reduced by 20 percent of
provisional income over $77,000. In no case is the subtraction less than zero.
(c) For single or head-of-household taxpayers, the maximum subtraction equals deleted text begin $3,500deleted text end new text begin
$4,800new text end . The maximum subtraction is reduced by 20 percent of provisional income over
$60,200. In no case is the subtraction less than zero.
(d) For married taxpayers filing separate returns, the maximum subtraction equals deleted text begin $2,250deleted text end new text begin
$3,075new text end . The maximum subtraction is reduced by 20 percent of provisional income over
$38,500. In no case is the subtraction less than zero.
(e) For purposes of this subdivision, "provisional income" means modified adjusted
gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of
the Social Security benefits received during the taxable year, and "Social Security benefits"
has the meaning given in section 86(d)(1) of the Internal Revenue Code.
(f) The commissioner shall adjust the maximum subtraction and threshold amounts in
paragraphs (b) to (d) deleted text begin 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) of the Internal Revenue
Code the word "2016" shall be substituted for the word "1992." For 2018, the commissioner
shall then determine the percentage change from the 12 months ending on August 31, 2016,
to the 12 months ending on August 31, 2017, and in each subsequent year, from the 12
months ending on August 31, 2016, to the 12 months ending on August 31 of the year
preceding the taxable year. The determination of the commissioner pursuant to this
subdivision must not be considered a rule and is not subject to the Administrative Procedure
Act contained in chapter 14, including section 14.386deleted text end new text begin as provided in section 270C.22. The
statutory year is taxable year 2019new text end . The maximum subtraction and threshold amounts as
adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, the amount
is rounded up to the nearest $10 amount.
new text begin EFFECTIVE DATE. new text end
new text begin
(a) The amendments to paragraphs (a) to (e) are effective
retroactively for taxable years beginning after December 31, 2018.
new text end
new text begin
(b) The amendment to paragraph (f) is effective for adjustments beginning with taxable
years beginning after December 31, 2019.
new text end
Sec. 10.
Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 30. new text end
new text begin Disallowed section 280E expenses; medical cannabis manufacturers. new text end
new text begin
The
amount of expenses of a medical cannabis manufacturer, as defined under section 152.22,
subdivision 7, related to the business of medical cannabis under sections 152.21 to 152.37,
and not allowed for federal income tax purposes under section 280E of the Internal Revenue
Code is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 11.
Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 31. new text end
new text begin Income of partners, members, or shareholders. new text end
new text begin
The amount of net income
determined, after allowable deductions and the additions and subtraction required under
this chapter, received from a qualifying entity, as defined under section 289A.08, subdivision
7a, for purposes of calculating federal taxable income by a partner, member, or shareholder
of a qualifying entity that has elected to file as a C-option corporation under section 289A.08,
subdivision 7a, is a subtraction. The amount of net income as adjusted under this subdivision
must not be less than zero.
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, 2018.
new text end
Sec. 12.
Minnesota Statutes 2018, section 290.0133, is amended by adding a subdivision
to read:
new text begin Subd. 16. new text end
new text begin
Equity and opportunity donations to qualified foundations and qualified
public school foundations.
new text end
new text begin
The amount of the deductions under sections 170 and 162 of
the Internal Revenue Code that represent contributions to a qualified foundation under
section 290.0693 are an addition.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2019.
new text end
Sec. 13.
Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision
to read:
new text begin Subd. 19. new text end
new text begin Disallowed section 280E expenses; medical cannabis manufacturers. new text end
new text begin
The
amount of expenses of a medical cannabis manufacturer, as defined under section 152.22,
subdivision 7, related to the business of medical cannabis under sections 152.21 to 152.37,
and not allowed for federal income tax purposes under section 280E of the Internal Revenue
Code is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 14.
Minnesota Statutes 2018, section 290.05, subdivision 1, is amended to read:
Subdivision 1.
Exempt entities.
The following corporations, individuals, estates, trusts,
and organizations shall be exempted from taxation under this chapter, provided that every
such person or corporation claiming exemption under this chapter, in whole or in part, must
establish to the satisfaction of the commissioner the taxable status of any income or activity:
(a) corporations, individuals, estates, and trusts engaged in the business of mining or
producing iron ore and mining, producing, or refining other ores, metals, and minerals, the
mining, production, or refining of which is subject to the occupation tax imposed by section
298.01; but if any such corporation, individual, estate, or trust engages in any other business
or activity or has income from any property not used in such business it shall be subject to
this tax computed on the net income from such property or such other business or activity.
Royalty shall not be considered as income from the business of mining or producing iron
ore within the meaning of this section;
(b) the United States of America, the state of Minnesota or any political subdivision of
either agencies or instrumentalities, whether engaged in the discharge of governmental or
proprietary functions; and
(c) any insurance company, deleted text begin as defined in section 290.17, subdivision 4, paragraph (j),
but including any insurance company licensed and domiciled in another state that grants,
on a reciprocal basis, exemption from retaliatory taxesdeleted text end new text begin other than a disqualified captive
insurance companynew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016.
new text end
Sec. 15.
Minnesota Statutes 2018, section 290.05, subdivision 3, is amended to read:
Subd. 3.
Taxes imposed on exempt entities.
(a) An organization exempt from taxation
under subdivision 2 shall, nevertheless, be subject to tax under this chapter to the extent
provided in the following provisions of the Internal Revenue Code:
(1) section 527 (dealing with political organizations);
(2) section 528 (dealing with certain homeowners associations);
(3) sections 511 to 515 (dealing with unrelated business income);
(4) section 521 (dealing with farmers' cooperatives); and
(5) section 6033(e)(2) (dealing with lobbying expense); but notwithstanding this
subdivision, shall be considered an organization exempt from income tax for the purposes
of any law which refers to organizations exempt from income taxes.
(b) The tax shall be imposed on the taxable income of political organizations or
homeowner associations or the unrelated business taxable income, as defined in section 512
of the Internal Revenue Code, of organizations defined in section 511 of the Internal Revenue
Code, provided that the tax is not imposed on:
(1) advertising revenues from a newspaper published by an organization described in
section 501(c)(4) of the Internal Revenue Code; deleted text begin or
deleted text end
(2) revenues from lawful gambling authorized under chapter 349 that are expended for
purposes that qualify for the deduction for charitable contributions under section 170 of the
Internal Revenue Code, disregarding the limitation under section 170(b)(2), but only to the
extent the contributions are not deductible in computing federal taxable incomedeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(3) amounts included in unrelated business taxable income under section 512(a)(7) of
the Internal Revenue Code.
new text end
The tax shall be at the corporate rates. The tax shall only be imposed on income and
deductions assignable to this state under sections 290.17 to 290.20. To the extent deducted
in computing federal taxable income, the deductions contained in section 290.21 shall not
be allowed in computing Minnesota taxable net income.
(c) The tax shall be imposed on organizations subject to federal tax under section
6033(e)(2) of the Internal Revenue Code, in an amount equal to the corporate tax rate
multiplied by the amount of lobbying expenses taxed under section 6033(e)(2) which are
attributable to lobbying the Minnesota state government.
new text begin
(d) Section 512(a)(6) of the Internal Revenue Code shall not apply for the purposes of
calculating the tax under this subdivision.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2017.
new text end
Sec. 16.
Minnesota Statutes 2018, section 290.06, subdivision 2c, is amended to read:
Subd. 2c.
Schedules of rates for individuals, estates, and trusts.
(a) The income taxes
imposed by this chapter upon married individuals filing joint returns and surviving spouses
as defined in section 2(a) of the Internal Revenue Code must be computed by applying to
their taxable net income the following schedule of rates:
(1) On the first $35,480, 5.35 percent;
(2) On all over $35,480, but not over $140,960, deleted text begin 7.05deleted text end new text begin 6.8new text end percent;
(3) On all over $140,960, but not over $250,000, 7.85 percent;
(4) On all over $250,000, 9.85 percent.
Married individuals filing separate returns, estates, and trusts must compute their income
tax by applying the above rates to their taxable income, except that the income brackets
will be one-half of the above 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 $24,270, 5.35 percent;
(2) On all over $24,270, but not over $79,730, deleted text begin 7.05deleted text end new text begin 6.8new text end percent;
(3) On all over $79,730, but not over $150,000, 7.85 percent;
(4) On all over $150,000, 9.85 percent.
(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as
a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first $29,880, 5.35 percent;
(2) On all over $29,880, but not over $120,070, deleted text begin 7.05deleted text end new text begin 6.8new text end percent;
(3) On all over $120,070, but not over $200,000, 7.85 percent;
(4) On all over $200,000, 9.85 percent.
(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax
of any individual taxpayer whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not more
than $100. The amount of tax for each bracket shall be computed at the rates set forth in
this subdivision, provided that the commissioner may disregard a fractional part of a dollar
unless it amounts to 50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the entire year must compute the
individual's Minnesota income tax as provided in this subdivision. After the application of
the nonrefundable credits provided in this chapter, the tax liability must then be multiplied
by a fraction in which:
(1) the numerator is the individual's Minnesota source federal adjusted gross income as
defined in section 62 of the Internal Revenue Code and increased by the additions required
under section 290.0131, subdivisions 2 deleted text begin anddeleted text end new text begin ,new text end 6new text begin , 8new text end to 11,new text begin and 15,new text end and reduced by the Minnesota
assignable portion of the subtraction for United States government interest under section
290.0132, subdivision 2, and the subtractions under section 290.0132, subdivisions 9, 10,
14, 15, 17, deleted text begin anddeleted text end 18,new text begin 27, and 28,new text end after applying the allocation and assignability provisions of
section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted gross income as defined in section
62 of the Internal Revenue Code, increased by the amounts specified in section 290.0131,
subdivisions 2 deleted text begin anddeleted text end new text begin ,new text end 6new text begin , 8new text end to 11,new text begin and 15,new text end and reduced by the amounts specified in section
290.0132, subdivisions 2, 9, 10, 14, 15, 17, deleted text begin anddeleted text end 18new text begin , 27, and 28new text end .
new text begin
(f) For taxable years beginning after December 31, 2021, a rate of 6.67 percent applies
instead of the 6.8 percent in paragraphs (a) to (c).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 17.
Minnesota Statutes 2018, section 290.06, subdivision 22, is amended to read:
Subd. 22.
Credit for taxes paid to another state.
(a) A taxpayer who is liable for taxes
based on net income to another state, as provided in paragraphs (b) through (f), upon income
allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state
if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who
is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who
is subject to income tax as a resident in the state of the individual's domicile is not allowed
this credit unless the state of domicile does not allow a similar credit.
(b) For an individual, estate, or trust, the credit is determined by multiplying the tax
payable under this chapter by the ratio derived by dividing the income subject to tax in the
other state that is also subject to tax in Minnesota while a resident of Minnesota by the
taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue
Code, modified by the addition required by section 290.0131, subdivision 2, and the
subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated
or assigned to Minnesota under sections 290.081 and 290.17.
(c) If the taxpayer is an athletic team that apportions all of its income under section
290.17, subdivision 5, the credit is determined by multiplying the tax payable under this
chapter by the ratio derived from dividing the total net income subject to tax in the other
state by the taxpayer's Minnesota taxable income.
(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of
tax so paid to the other state on the gross income earned within the other state subject to
tax under this chapter; and
(2) the allowance of the credit does not reduce the taxes paid under this chapter to an
amount less than what would be assessed if the gross income earned within the other state
were excluded from taxable net income.
(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the
credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum
distribution that is also subject to tax under section 290.032, and shall not exceed the tax
assessed under section 290.032. To the extent the total lump-sum distribution defined in
section 290.032, subdivision 1, includes lump-sum distributions received in prior years or
is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution
allowed under section 290.032, subdivision 2, includes tax paid to another state that is
properly apportioned to that distribution.
(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax
in such other state on that same income after the Minnesota statute of limitations has expired,
the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any
statute of limitations to the contrary. The claim for the credit must be submitted within one
year from the date the taxes were paid to the other state. The taxpayer must submit sufficient
proof to show entitlement to a credit.
(g) For the purposes of this subdivision, a resident shareholder of a corporation treated
as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed
on the shareholder in an amount equal to the shareholder's pro rata share of any net income
tax paid by the S corporation to another state. For the purposes of the preceding sentence,
the term "net income tax" means any tax imposed on or measured by a corporation's net
income.
(h) For the purposes of this subdivision, a resident partner of an entity taxed as a
partnership under the Internal Revenue Code must be considered to have paid a tax imposed
on the partner in an amount equal to the partner's pro rata share of any net income tax paid
by the partnership to another state. For purposes of the preceding sentence, the term "net
income" tax means any tax imposed on or measured by a partnership's net income.
(i) For the purposes of this subdivision, "another state":
(1) includes:
(i) the District of Columbia; and
(ii) a province or territory of Canada; but
(2) excludes Puerto Rico and the several territories organized by Congress.
(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state
by state basis.
(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this
subdivision is the excess of the tax over the amount of the foreign tax credit allowed under
section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit
allowed, the net income taxes imposed by Canada on the income are deducted first. Any
remaining amount of the allowable foreign tax credit reduces the provincial or territorial
tax that qualifies for the credit under this subdivision.
(l)(1) The credit allowed to a qualifying individual under this section for tax paid to a
qualifying state equals the credit calculated under paragraphs (b) and (d), plus the amount
calculated by multiplying:
(i) the difference between the preliminary credit and the credit calculated under paragraphs
(b) and (d), by
(ii) the ratio derived by dividing the income subject to tax in the qualifying state that
consists of compensation for performance of personal or professional services by the total
amount of income subject to tax in the qualifying state.
(2) If the amount of the credit that a qualifying individual is eligible to receive under
clause (1) for tax paid to a qualifying state exceeds the tax due under this chapter before
the application of the credit calculated under clause (1), the commissioner shall refund the
excess to the qualifying individual. An amount sufficient to pay the refunds required by this
subdivision is appropriated to the commissioner from the general fund.
(3) For purposes of this paragraph, "preliminary credit" means the credit that a qualifying
individual is eligible to receive under paragraphs (b) and (d) for tax paid to a qualifying
state without regard to the limitation in paragraph (d), clause (2); "qualifying individual"
means a Minnesota resident under section 290.01, subdivision 7, paragraph (a), who received
compensation during the taxable year for the performance of personal or professional services
within a qualifying state; and "qualifying state" means a state with which an agreement
under section 290.081 is not in effect for the taxable year but was in effect for a taxable
year beginning before January 1, 2010.
new text begin
(m) An entity making an election to be taxed as a C-option corporation under section
289A.08, subdivision 7a, may claim a credit for the amount of any net income tax paid to
another state on a composite return filed with that state on behalf of its Minnesota resident
shareholders or partners. For purposes of the preceding sentence, "net income tax" means
any tax imposed on or measured by net income.
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, 2018.
new text end
Sec. 18.
Minnesota Statutes 2018, section 290.0674, subdivision 1, is amended to read:
Subdivision 1.
Credit allowed.
new text begin (a) new text end An individual is allowed a credit against the tax
imposed by this chapter in an amount equal to 75 percent of the amount paid for
education-related expenses for a qualifying childnew text begin in a prekindergarten educational program
ornew text end in kindergarten through grade 12.
new text begin (b)new text end For purposes of this section, "education-related expenses" means:
(1) fees or tuition for instruction by an instructor under section 120A.22, subdivision
10, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers Association,
and who is not a lineal ancestor or sibling of the dependent for instruction outside the regular
school day or school year, including tutoring, driver's education offered as part of school
curriculum, regardless of whether it is taken from a public or private entity or summer
camps, in grade or age appropriate curricula that supplement curricula and instruction
available during the regular school year, that assists a dependent to improve knowledge of
core curriculum areas or to expand knowledge and skills under the required academic
standards under section 120B.021, subdivision 1, and the elective standard under section
120B.022, subdivision 1, clause (2), and that do not include the teaching of religious tenets,
doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship;
(2) expenses for textbooks, including 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. "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 extracurricular
activities including sporting events, musical or dramatic events, speech activities, driver's
education, or similar programs;
(3) a maximum expense of $200 per family for personal computer hardware, excluding
single purpose processors, and educational software that assists a dependent to improve
knowledge of core curriculum areas or to expand knowledge and skills under the required
academic standards under section 120B.021, subdivision 1, and the elective standard under
section 120B.022, subdivision 1, clause (2), purchased for use in the taxpayer's home and
not used in a trade or business regardless of whether the computer is required by the
dependent's school; deleted text begin and
deleted text end
(4) the amount paid to others for transportation of a qualifying child 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. Amounts under this clause exclude any
expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicledeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(5) fees charged for enrollment in a prekindergarten educational program, to the extent
not used to claim the credit under section 290.067.
new text end
new text begin (c) new text end For purposes of this section, "qualifying child" has the meaning given in section
32(c)(3) of the Internal Revenue Code.
new text begin
(d) For purposes of this section, "prekindergarten educational program" means:
new text end
new text begin
(1) prekindergarten programs established by a school district under chapter 124D;
new text end
new text begin
(2) preschools, nursery schools, and early childhood development programs licensed by
the Department of Human Services and accredited by the National Association for the
Education of Young Children or National Early Childhood Program Accreditation;
new text end
new text begin
(3) Montessori programs affiliated with or accredited by the American Montessori
Society or American Montessori International; and
new text end
new text begin
(4) child care programs provided by family day care providers holding a current early
childhood development credential approved by the commissioner of human services.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2019.
new text end
Sec. 19.
Minnesota Statutes 2018, section 290.0674, subdivision 2, is amended to read:
Subd. 2.
Limitations.
(a) For claimants with income not greater than deleted text begin $33,500deleted text end new text begin $39,000new text end ,
the maximum credit allowed for a family is $1,000 multiplied by the number of qualifying
children in deleted text begin kindergartendeleted text end new text begin prekindergarten new text end through grade 12 in the family. The maximum
credit for families with one qualifying child in deleted text begin kindergartendeleted text end new text begin prekindergarten new text end through grade
12 is reduced by $1 for each $4 of deleted text begin householddeleted text end income over deleted text begin $33,500deleted text end new text begin $39,000new text end , and the
maximum credit for families with two or more qualifying children in deleted text begin kindergartendeleted text end
new text begin prekindergarten new text end through grade 12 is reduced by $2 for each $4 of deleted text begin householddeleted text end income over
deleted text begin $33,500deleted text end new text begin $39,000new text end , but in no case is the credit less than zero.
(b) In the case of a married claimant, a credit is not allowed unless a joint income tax
return is filed.
(c) For a nonresident or part-year resident, the credit determined under subdivision 1
and the maximum credit amount in paragraph (a) must be allocated using the percentage
calculated in section 290.06, subdivision 2c, paragraph (e).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2019.
new text end
Sec. 20.
Minnesota Statutes 2018, section 290.0674, is amended by adding a subdivision
to read:
new text begin Subd. 2b. new text end
new text begin Inflation adjustment. new text end
new text begin
The commissioner shall annually adjust the income
amounts in subdivision 2, paragraph (a), as provided in section 270C.22. The statutory year
is taxable year 2020.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for adjustments beginning with taxable
years beginning after December 31, 2020.
new text end
Sec. 21.
new text begin
[290.0693] EQUITY AND OPPORTUNITY IN EDUCATION TAX CREDIT.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Eligible student" means a student who:
new text end
new text begin
(1) resides in Minnesota;
new text end
new text begin
(2) is either:
new text end
new text begin
(i) a member of a household that has total annual income during the year prior to initial
receipt of a qualified scholarship or a qualified transportation scholarship, without
consideration of the benefits under this program, that does not exceed an amount equal to
two times the income standard used to qualify for a reduced-price meal under the National
School Lunch Program; or
new text end
new text begin
(ii) is a child with a disability as defined in section 125A.02; and
new text end
new text begin
(3) meets one of the following criteria:
new text end
new text begin
(i) attended a school, as defined in section 120A.22, subdivision 4, in the semester
preceding initial receipt of a qualified scholarship or a qualified transportation scholarship;
new text end
new text begin
(ii) is younger than age seven and not enrolled in kindergarten or first grade in the
semester preceding initial receipt of a qualified scholarship or a qualified transportation
scholarship;
new text end
new text begin
(iii) previously received a qualified scholarship or a qualified transportation scholarship
under this section; or
new text end
new text begin
(iv) lived in Minnesota for less than a year prior to initial receipt of a qualified scholarship
or a qualified transportation scholarship.
new text end
new text begin
(c) "Equity and opportunity in education donation" means a donation to a qualified public
school foundation or to a qualified foundation that awards qualified scholarships, awards
qualified transportation scholarships, or makes qualified grants.
new text end
new text begin
(d) "Household" means household as used to determine eligibility under the National
School Lunch Program.
new text end
new text begin
(e) "National School Lunch Program" means the program in United States Code, title
42, section 1758.
new text end
new text begin
(f) "Qualified charter school" means a charter elementary or secondary school in
Minnesota at which at least 30 percent of students qualify for a free or reduced-price meal
under the National School Lunch Program.
new text end
new text begin
(g) "Qualified school" means a school operated in Minnesota that is a nonpublic
elementary or secondary school in Minnesota wherein a resident may legally fulfill the
state's compulsory attendance laws that:
new text end
new text begin
(1) is not operated for profit;
new text end
new text begin
(2) adheres to the provisions of United States Code, title 42, section 1981, and Minnesota
Statutes, chapter 363A;
new text end
new text begin
(3) administers the Minnesota Comprehensive Assessments or a norm-referenced test
in reading and math approved by a qualified foundation to all students in grades 3 to 8 and
once in high school; and
new text end
new text begin
(4) reports annual student performance on the test on the school's website, including the
number of students who opt out of the test, the aggregate test results, and the test results
disaggregated by student category listed in section 120B.31, subdivision 4, unless the cell
count data is insufficient to protect student identity.
new text end
new text begin
(h) "Qualified foundation" means a nonprofit organization granted an exemption from
the federal income tax under section 501(c)(3) of the Internal Revenue Code formed for the
primary purpose of granting qualified scholarships or qualified transportation scholarships,
and that has been approved as a qualified foundation by the commissioner of revenue under
subdivision 5.
new text end
new text begin
(i) "Qualified grant" means a grant from a qualified foundation to a qualified charter
school for use in support of the school's mission of educating students in academics, arts,
or athletics, including transportation.
new text end
new text begin
(j) "Qualified public school foundation" means a qualified foundation formed for the
primary purpose of supporting one or more public schools or school districts in Minnesota
in which at least 30 percent of students qualify for a free or reduced-price meal under the
National School Lunch Program.
new text end
new text begin
(k) "Qualified scholarship" means a payment from a qualified foundation to or on behalf
of the parent or guardian of an eligible student for payment of tuition for enrollment in
grades kindergarten through 12 at a qualified school. A qualified scholarship must not
exceed an amount greater than 70 percent of the state average general education revenue
under section 126C.10, subdivision 1, per pupil unit.
new text end
new text begin
(l) "Qualified transportation scholarship" means a payment from a qualified foundation
to or on behalf of a parent or guardian of an eligible student for payment of transportation
to a school, as defined in section 120A.22, subdivision 4. A qualified transportation
scholarship must not exceed an amount greater than 70 percent of the state average general
education revenue under section 126C.10, subdivision 1, per pupil unit.
new text end
new text begin
(m) "Total annual income" means the income measure used to determine eligibility
under the National School Lunch Program in United States Code, title 42, section 1758.
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 or corporate taxpayer who has been issued
a credit certificate under subdivision 3 is allowed a credit against the tax due under this
chapter equal to 70 percent of the amount donated during the taxable year to the qualified
foundation or qualified public school foundation designated on the taxpayer's credit
certificate. No credit is allowed if the taxpayer designates a specific child as the beneficiary
of the contribution. No credit is allowed to a taxpayer for an equity and opportunity in
education donation made before the taxpayer was issued a credit certificate as provided in
subdivision 3.
new text end
new text begin
(b) The maximum annual credit allowed is:
new text end
new text begin
(1) $21,000 for married joint filers for a one-year donation of $30,000;
new text end
new text begin
(2) $10,500 for other individual filers for a one-year donation of $15,000; and
new text end
new text begin
(3) $105,000 for corporate filers for a one-year donation of $150,000.
new text end
new text begin
(c) A taxpayer must provide a copy of the receipt provided by the qualified foundation
or qualified public school foundation when claiming the credit for the donation if requested
by the commissioner.
new text end
new text begin
(d) The credit is limited to the liability for tax under this chapter, including the tax
imposed by sections 290.0921 and 290.0922.
new text end
new text begin
(e) If the amount of the credit under this subdivision for any taxable year exceeds the
limitations under paragraph (d), the excess is a credit carryover to each of the five succeeding
taxable years. The entire amount of the excess unused credit for the taxable year must be
carried first to the earliest of the taxable years to which the credit may be carried. The
amount of the unused credit that may be added under this paragraph may not exceed the
taxpayer's liability for tax, less the credit for the taxable year. No credit may be carried to
a taxable year more than five years after the taxable year in which the credit was earned.
new text end
new text begin Subd. 3. new text end
new text begin Application for credit certificate. new text end
new text begin
(a) The commissioner must make applications
for tax credits for 2020 available on the department's website by January 1, 2020.
Applications for subsequent years must be made available by January 1 of the taxable year.
new text end
new text begin
(b) A taxpayer must apply to the commissioner for an equity and opportunity in education
tax credit certificate. The application must be in the form and manner specified by the
commissioner and must designate the qualified foundation or qualified public school
foundation to which the taxpayer intends to make a donation. The commissioner must begin
accepting applications for a taxable year on January 1. The commissioner must issue tax
credit certificates under this section on a first-come, first-served basis until the maximum
statewide credit amount has been reached. The certificates must list the qualified foundation
or qualified public school foundation the taxpayer designated on the application. The
maximum statewide credit amount is $26,500,000 per taxable year, excluding any amounts
carried forward from a previous taxable year under subdivision 2.
new text end
new text begin
(c) The commissioner must not issue a tax credit certificate for an amount greater than
the limits in subdivision 2.
new text end
new text begin
(d) The commissioner must not issue a credit certificate for an application that designates
a qualified foundation or qualified public school foundation that the commissioner has
barred from participation as provided in subdivision 5.
new text end
new text begin Subd. 4. new text end
new text begin
Responsibilities of qualified foundations and qualified public school
foundations.
new text end
new text begin
(a) A qualified foundation that awards qualified scholarships or qualified
transportation scholarships must:
new text end
new text begin
(1) award qualified scholarships or qualified transportation scholarships to eligible
students;
new text end
new text begin
(2) not restrict the availability of scholarships to students of one qualified school;
new text end
new text begin
(3) not charge a fee of any kind for a child to be considered for a scholarship;
new text end
new text begin
(4) require a qualified school receiving payment of tuition through a scholarship funded
by contributions qualifying for the tax credit under this section to sign an agreement that it
will not use different admissions standards for a student with a qualified scholarship; and
new text end
new text begin
(5) in awarding scholarships, give priority to a student in a household that has total
annual income during the year prior to initial receipt of a qualified scholarship, without
consideration of the benefits under this program, that does not exceed an amount equal to
two times the income standard used to qualify for a reduced-price meal under the National
School Lunch Program.
new text end
new text begin
(b) An entity that is eligible to be a qualified foundation or qualified public school
foundation must apply to the commissioner by September 15 of the year preceding the year
in which it will first receive equity and opportunity in education donations. The application
must be in the form and manner prescribed by the commissioner. The application must:
new text end
new text begin
(1) demonstrate to the commissioner that the entity has been granted an exemption from
the federal income tax as an organization described in section 501(c)(3) of the Internal
Revenue Code; and
new text end
new text begin
(2) demonstrate the entity's financial accountability by submitting its most recent audited
financial statement prepared by a certified public accountant firm licensed under chapter
326A using the Statements on Auditing Standards issued by the Audit Standards Board of
the American Institute of Certified Public Accountants.
new text end
new text begin
(c) A qualified foundation or qualified public school foundation must provide to taxpayers
who make donations or commitments to donate a receipt or verification on a form approved
by the commissioner.
new text end
new text begin
(d) A qualified foundation that awards qualified scholarships or qualified transportation
scholarships must, in each year it awards qualified scholarships or qualified transportation
scholarships to eligible students to enroll in a qualified school, obtain from the qualified
school documentation that the school:
new text end
new text begin
(1) complies with all health and safety laws or codes that apply to nonpublic schools;
new text end
new text begin
(2) holds a valid occupancy permit if required by its municipality;
new text end
new text begin
(3) certifies that it adheres to the provisions of chapter 363A and United States Code,
title 42, section 1981; and
new text end
new text begin
(4) administers the Minnesota Comprehensive Assessment or a foundation approved
norm-referenced test by providing the foundation a report on student performance on the
test, including the number of students who opt out of the test, the aggregate test results, and
the test results disaggregated by student category listed in section 120B.31, subdivision 4,
unless the cell count data is insufficient to protect student identity.
new text end
new text begin
A qualified foundation must make the documentation available to the commissioner on
request, and report student performance on the Minnesota Comprehensive Assessment or
norm-referenced test, by qualified school, on its website.
new text end
new text begin
(e) A qualified foundation or qualified public school foundation must, by June 1 of each
year following a year in which it receives donations, provide the following information to
the commissioner:
new text end
new text begin
(1) financial information that demonstrates the financial viability of the qualified
foundation or qualified public school foundation;
new text end
new text begin
(2) documentation that it has conducted criminal background checks on all of its
employees and board members and has excluded from employment or governance any
individuals who might reasonably pose a risk to the appropriate use of contributed funds;
new text end
new text begin
(3) consistent with paragraph (f), document that it has used amounts received as donations
to provide qualified scholarships, to provide qualified transportation scholarships, to make
qualified grants, or in support of the mission of one or more public schools or school districts
of educating students in academics, arts, or athletics, including transportation within one
calendar year of the calendar year in which it received the donation;
new text end
new text begin
(4) if the qualified foundation awards qualified scholarships or qualified transportation
scholarships, a list of qualified schools that enrolled eligible students to whom the qualified
foundation awarded qualified scholarships;
new text end
new text begin
(5) if the qualified foundation makes qualified grants, a list of qualified charter schools
to which the qualified foundation made qualified grants;
new text end
new text begin
(6) if the qualified foundation is a qualified public school foundation, a list of expenditures
made in support of the mission of one or more public schools or school districts of educating
students in academics, arts, or athletics, including transportation; and
new text end
new text begin
(7) the following information prepared by a certified public accountant regarding
donations received in the previous calendar year:
new text end
new text begin
(i) the total number and total dollar amount of donations received from taxpayers;
new text end
new text begin
(ii) the dollar amount of donations used for administrative expenses, as allowed by
paragraph (f);
new text end
new text begin
(iii) if the qualified foundation awarded qualified scholarships, the total number and
dollar amount of qualified scholarships awarded;
new text end
new text begin
(iv) if the qualified foundation awarded qualified transportation scholarships, the total
number and dollar amount of qualified transportation scholarships awarded;
new text end
new text begin
(v) if the qualified foundation made qualified grants, the total number and dollar amount
of qualified grants made; and
new text end
new text begin
(vi) if the qualified foundation is a qualified public school foundation, the total number
and dollar amount of expenditures made in support of the mission of one or more public
schools or school districts of educating students in academics, arts, or athletics, including
transportation.
new text end
new text begin
(f) The qualified foundation or qualified public school foundation may use up to five
percent of the amounts received as donations for reasonable administrative expenses,
including but not limited to fund-raising, scholarship tracking, and reporting requirements.
new text end
new text begin Subd. 5. new text end
new text begin Responsibilities of commissioner. new text end
new text begin
(a) The commissioner must make
applications for an entity to be approved as a qualified foundation or qualified public school
foundation for a taxable year available on the department's website by August 1 of the year
preceding the taxable year. The commissioner must approve an application that provides
the documentation required in subdivision 4, paragraph (b), clauses (1) and (2), within 60
days of receiving the application. The commissioner must notify a qualified foundation or
qualified public school foundation that provides incomplete documentation and the foundation
may resubmit its application within 30 days.
new text end
new text begin
(b) By November 15 of each year, the commissioner must post on the department's
website the names and addresses of qualified foundations and qualified public school
foundations for the next taxable year. The commissioner must regularly update the names
and addresses of any qualified foundations or qualified public school foundations that have
been barred from participating in the program.
new text end
new text begin
(c) The commissioner must prescribe a standardized format for a receipt to be issued by
a qualified foundation or qualified public school foundation to a taxpayer to indicate the
value of a donation received and of a commitment to make a donation.
new text end
new text begin
(d) The commissioner must prescribe a standardized format for qualified foundations
and qualified public school foundations to report the information required under subdivision
4, paragraph (e).
new text end
new text begin
(e) The commissioner may conduct either a financial review or audit of a qualified
foundation or qualified public school foundation upon finding evidence of fraud or
misreporting. If the commissioner determines that the qualified foundation or qualified
public school foundation committed fraud or intentionally misreported information, the
qualified foundation is barred from further program participation.
new text end
new text begin
(f) If a qualified foundation or qualified public school foundation fails to submit the
documentation required under subdivision 4, paragraph (c), by June 1, the commissioner
must notify the qualified foundation or qualified public school foundation by July 1. A
qualified foundation that fails to submit the required information by August 1 is barred from
participation for the next taxable year.
new text end
new text begin
(g) If a qualified foundation or qualified public school foundation fails to comply with
the requirements of subdivision 4, paragraph (c), the commissioner must by September 1
notify the qualified foundation that it has until November 1 to document that it has remedied
its noncompliance. A qualified foundation or qualified public school foundation that fails
to document that it has remedied its noncompliance by November 1 is barred from
participation for the next taxable year.
new text end
new text begin
(h) A qualified foundation or qualified public school foundation barred under paragraph
(f) or (g) may become eligible to participate by submitting the required information in future
years.
new text end
new text begin Subd. 6. new text end
new text begin Special education services. new text end
new text begin
A student's receipt of a qualified scholarship or
qualified transportation scholarship does not affect the student's eligibility for instruction
and service under chapter 125A or otherwise affect the student's status under federal special
education laws.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment for
donations made and credits allowed in taxable years beginning after December 31, 2019.
new text end
Sec. 22.
Minnesota Statutes 2018, 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) The portion of the depreciation deduction allowed for federal income tax purposes
under section 168(k) of the Internal Revenue Code that is required as an addition under
section 290.0133, subdivision 11, is disallowed in determining alternative minimum taxable
income.
(2) The subtraction for depreciation allowed under section 290.0134, subdivision 13, is
allowed as a depreciation deduction in determining alternative minimum taxable income.
(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
of the Internal Revenue Code does not apply.
(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
Revenue Code does not apply.
(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue Code
does not apply.
(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
Revenue Code does not apply.
(7) The tax preference for charitable contributions of appreciated property under section
57(a)(6) of the Internal Revenue Code does not apply.
(8) For purposes of calculating the adjustment for adjusted current earnings in section
56(g) of the Internal Revenue Code, the term "alternative minimum taxable income" as it
is used in section 56(g) of the Internal Revenue Code, means alternative minimum taxable
income as defined in this subdivision, determined without regard to the adjustment for
adjusted current earnings in section 56(g) of the Internal Revenue Code.
(9) For purposes of determining the amount of adjusted current earnings under section
56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 56(g)(4)
of the Internal Revenue Code with respect to (i) the amount of foreign dividend gross-up
subtracted as provided in section 290.0134, subdivision 2, or (ii) the amount of refunds of
income, excise, or franchise taxes subtracted as provided in section 290.0134, subdivision
8.
(10) Alternative minimum taxable income excludes the income from operating in a job
opportunity building zone as provided under section 469.317.
new text begin
(11) The subtraction for disallowed section 280E expenses of medical cannabis
manufacturers allowed under section 290.0134, subdivision 19, is allowed as a deduction
in determining alternative minimum taxable income.
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, 2018.
new text end
Sec. 23.
Minnesota Statutes 2018, section 290.17, subdivision 4, is amended to read:
Subd. 4.
Unitary business principle.
(a) If a trade or business conducted wholly within
this state or partly within and partly without this state is part of a unitary business, the entire
income of the unitary business is subject to apportionment pursuant to section 290.191.
Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary business is
considered to be derived from any particular source and none may be allocated to a particular
place except as provided by the applicable apportionment formula. The provisions of this
subdivision do not apply to business income subject to subdivision 5, income of an insurance
company, or income of an investment company determined under section 290.36.
(b) The term "unitary business" means business activities or operations which result in
a flow of value between them. The term may be applied within a single legal entity or
between multiple entities and without regard to whether each entity is a sole proprietorship,
a corporation, a partnership or a trust.
(c) Unity is presumed whenever there is unity of ownership, operation, and use, evidenced
by centralized management or executive force, centralized purchasing, advertising,
accounting, or other controlled interaction, but the absence of these centralized activities
will not necessarily evidence a nonunitary business. Unity is also presumed when business
activities or operations are of mutual benefit, dependent upon or contributory to one another,
either individually or as a group.
(d) Where a business operation conducted in Minnesota is owned by a business entity
that carries on business activity outside the state different in kind from that conducted within
this state, and the other business is conducted entirely outside the state, it is presumed that
the two business operations are unitary in nature, interrelated, connected, and interdependent
unless it can be shown to the contrary.
(e) Unity of ownership does not exist when two or more corporations are involved unless
more than 50 percent of the voting stock of each corporation is directly or indirectly owned
by a common owner or by common owners, either corporate or noncorporate, or by one or
more of the member corporations of the group. For this purpose, the term "voting stock"
shall include membership interests of mutual insurance holding companies formed under
section 66A.40.
(f) The net income and apportionment factors under section 290.191 or 290.20 of foreign
corporations and other foreign entitiesnew text begin , but excluding a disqualified captive insurance
company,new text end which are part of a unitary business shall not be included in the net income or
the apportionment factors of the unitary business; except that the income and apportionment
factors of a foreign entity, other than an entity treated as a C corporation for federal income
tax purposes, that are included in the federal taxable income, as defined in section 63 of the
Internal Revenue Code as amended through the date named in section 290.01, subdivision
19, of a domestic corporation, domestic entity, or individual must be included in determining
net income and the factors to be used in the apportionment of net income pursuant to section
290.191 or 290.20. A foreign corporation or other foreign entity which is not included on
a combined report and which is required to file a return under this chapter shall file on a
separate return basis.
(g) For purposes of determining the net income of a unitary business and the factors to
be used in the apportionment of net income pursuant to section 290.191 or 290.20, there
must be included only the income and apportionment factors of domestic corporations or
other domestic entities that are determined to be part of the unitary business pursuant to this
subdivision, notwithstanding that foreign corporations or other foreign entities might be
included in the unitary business; except that the income and apportionment factors of a
foreign entity, other than an entity treated as a C corporation for federal income tax purposes,
that is included in the federal taxable income, as defined in section 63 of the Internal Revenue
Code as amended through the date named in section 290.01, subdivision 19, of a domestic
corporation, domestic entity, or individual must be included in determining net income and
the factors to be used in the apportionment of net income pursuant to section 290.191 or
290.20.
(h) Each corporation or other entity, except a sole proprietorship, that is part of a unitary
business must file combined reports as the commissioner determines. On the reports, all
intercompany transactions between entities included pursuant to paragraph (g) must be
eliminated and the entire net income of the unitary business determined in accordance with
this subdivision is apportioned among the entities by using each entity's Minnesota factors
for apportionment purposes in the numerators of the apportionment formula and the total
factors for apportionment purposes of all entities included pursuant to paragraph (g) in the
denominators of the apportionment formula. Except as otherwise provided by paragraph
(f), all sales of the unitary business made within this state pursuant to section 290.191 or
290.20 must be included on the combined report of a corporation or other entity that is a
member of the unitary business and is subject to the jurisdiction of this state to impose tax
under this chapter.
(i) If a corporation has been divested from a unitary business and is included in a
combined report for a fractional part of the common accounting period of the combined
report:
(1) its income includable in the combined report is its income incurred for that part of
the year determined by proration or separate accounting; and
(2) its sales, property, and payroll included in the apportionment formula must be prorated
or accounted for separately.
(j) For purposes of this subdivision, "insurance company" means an insurance company,
as defined in section 290.01, subdivision 5b, that isdeleted text begin :
deleted text end
deleted text begin
(1) licensed to engage in the business of insurance in Minnesota pursuant to chapter
60A; or
deleted text end
deleted text begin
(2) domiciled and licensed to engage in the business of insurance in another state or
country that imposes retaliatory taxes, fines, deposits, penalties, licenses, or fees and that
does not grant, on a reciprocal basis, exemption from such retaliatory taxes to insurance
companies or their agents domiciled in Minnesota.
deleted text end
deleted text begin (k) For purposes of this subdivision, "retaliatory taxes" means taxes imposed on insurance
companies organized in another state or country that result from the fact that an insurance
company organized in the taxing jurisdiction and doing business in the other jurisdiction is
subject to taxes, fines, deposits, penalties, licenses, or fees in an amount exceeding that
imposed by the taxing jurisdiction upon an insurance company organized in the other state
or country and doing business to the same extent in the taxing jurisdictiondeleted text end new text begin not a disqualified
captive insurance companynew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2016.
new text end
Sec. 24.
Minnesota Statutes 2018, section 290.92, subdivision 4b, is amended to read:
Subd. 4b.
Withholding by partnerships.
(a) A partnership shall deduct and withhold
a tax as provided in paragraph (b) for nonresident individual partners based on their
distributive shares of partnership income for a taxable year of the partnership.
(b) The amount of tax withheld is determined by multiplying the partner's distributive
share allocable to Minnesota under section 290.17, paid or credited during the taxable year
by the highest rate used to determine the income tax liability for an individual under section
290.06, subdivision 2c, except that the amount of tax withheld may be determined by the
commissioner if the partner submits a withholding exemption certificate under subdivision
5.
(c) The commissioner may reduce or abate the tax withheld under this subdivision if the
partnership had reasonable cause to believe that no tax was due under this section.
(d) Notwithstanding paragraph (a), a partnership is not required to deduct and withhold
tax for a nonresident partner if:
(1) the partner elects to have the tax due paid as part of the partnership's composite return
under section 289A.08, subdivision 7;
(2) the partner has Minnesota assignable federal adjusted gross income from the
partnership of less than $1,000; or
(3) the partnership is liquidated or terminated, the income was generated by a transaction
related to the termination or liquidation, and no cash or other property was distributed in
the current or prior taxable year;
(4) the distributive shares of partnership income are attributable to:
(i) income required to be recognized because of discharge of indebtedness;
(ii) income recognized because of a sale, exchange, or other disposition of real estate,
depreciable property, or property described in section 179 of the Internal Revenue Code;
or
(iii) income recognized on the sale, exchange, or other disposition of any property that
has been the subject of a basis reduction pursuant to section 108, 734, 743, 754, or 1017 of
the Internal Revenue Code
to the extent that the income does not include cash received or receivable or, if there is cash
received or receivable, to the extent that the cash is required to be used to pay indebtedness
by the partnership or a secured debt on partnership property; deleted text begin or
deleted text end
(5) the partnership is a publicly traded partnership, as defined in section 7704(b) of the
Internal Revenue Codenew text begin ; or
new text end
new text begin (6) the partnership has elected to be taxed as a C-option corporation under section
289A.08, subdivision 7anew text end .
(e) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2,
paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a partnership is considered an
employer.
(f) To the extent that income is exempt from withholding under paragraph (d), clause
(4), the commissioner has a lien in an amount up to the amount that would be required to
be withheld with respect to the income of the partner attributable to the partnership interest,
but for the application of paragraph (d), clause (4). The lien arises under section 270C.63
from the date of assessment of the tax against the partner, and attaches to that partner's share
of the profits and any other money due or to become due to that partner in respect of the
partnership. Notice of the lien may be sent by mail to the partnership, without the necessity
for recording the lien. The notice has the force and effect of a levy under section 270C.67,
and is enforceable against the partnership in the manner provided by that section. Upon
payment in full of the liability subsequent to the notice of lien, the partnership must be
notified that the lien has been satisfied.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 25.
Minnesota Statutes 2018, section 290.92, subdivision 4c, is amended to read:
Subd. 4c.
Withholding by S corporations.
(a) A corporation having a valid election in
effect under section 290.9725 shall deduct and withhold a tax as provided in paragraph (b)
for nonresident individual shareholders their share of the corporation's income for the taxable
year.
(b) The amount of tax withheld is determined by multiplying the amount of income
allocable to Minnesota under section 290.17 by the highest rate used to determine the income
tax liability of an individual under section 290.06, subdivision 2c, except that the amount
of tax withheld may be determined by the commissioner if the shareholder submits a
withholding exemption certificate under subdivision 5.
(c) Notwithstanding paragraph (a), a corporation is not required to deduct and withhold
tax for a nonresident shareholder, if:
(1) the shareholder elects to have the tax due paid as part of the corporation's composite
return under section 289A.08, subdivision 7;
(2) the shareholder has Minnesota assignable federal adjusted gross income from the
corporation of less than $1,000; deleted text begin or
deleted text end
(3) the corporation is liquidated or terminated, the income was generated by a transaction
related to the termination or liquidation, and no cash or other property was distributed in
the current or prior taxable yearnew text begin ; or
new text end
new text begin (4) the S-corporation has elected to be taxed as a C-option corporation under section
289A.08, subdivision 7anew text end .
(d) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2,
paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a corporation is considered an
employer.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 26.
Minnesota Statutes 2018, section 291.03, subdivision 9, is amended to read:
Subd. 9.
Qualified small business property.
Property satisfying all of the following
requirements is qualified small business property:
(1) The value of the property was included in the federal adjusted taxable estate.
(2) The property consists of the assets of a trade or business or shares of stock or other
ownership interests in a corporation or other entity engaged in a trade or business. Shares
of stock in a corporation or an ownership interest in another type of entity do not qualify
under this subdivision if the shares or ownership interests are traded on a public stock
exchange at any time during the three-year period ending on the decedent's date of death.
For purposes of this subdivision, an ownership interest includes the interest the decedent is
deemed to own under sections 2036, 2037, deleted text begin anddeleted text end 2038new text begin , 2040, or 2044new text end of the Internal Revenue
Code.
(3) During the taxable year that ended before the decedent's death, the trade or business
must not have been a passive activity within the meaning of section 469(c) of the Internal
Revenue Code, and the decedent or the decedent's spouse must have materially participated
in the trade or business within the meaning of section 469(h) of the Internal Revenue Code,
excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided
by United States Treasury Department regulation that substitutes material participation in
prior taxable years for material participation in the taxable year that ended before the
decedent's death.
(4) The gross annual sales of the trade or business were $10,000,000 or less for the last
taxable year that ended before the date of the death of the decedent.
(5) The property does not include:
(i) cash;
(ii) cash equivalents;
(iii) publicly traded securities; or
(iv) any assets not used in the operation of the trade or business.
(6) For property consisting of shares of stock or other ownership interests in an entity,
the value of items described in clause (5) must be excluded in the valuation of the decedent's
interest in the entity.
(7) The decedentnew text begin or the decedent's spousenew text end continuously owned the property,new text begin or an
undivided or joint interest in the property,new text end including property the decedentnew text begin or the decedent's
spousenew text end is deemed to own under sections 2036, 2037, deleted text begin anddeleted text end 2038new text begin , 2040, or 2044new text end of the Internal
Revenue Code,new text begin or under subdivision 1d,new text end for the three-year period ending on the date of
death of the decedent. In the case of a sole proprietor, if the property replaced similar property
within the three-year period, the replacement property will be treated as having been owned
for the three-year period ending on the date of death of the decedent.new text begin For the purposes of
the three-year holding period under this clause, any ownership by the decedent's spouse,
whether the spouse predeceases or survives the decedent, is attributed to the decedent.
new text end
(8) For three years following the date of death of the decedent, the trade or business is
not a passive activity within the meaning of section 469(c) of the Internal Revenue Code,
and a family member materially participates in the operation of the trade or business within
the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
of the Internal Revenue Code and any other provision provided by United States Treasury
Department regulation that substitutes material participation in prior taxable years for
material participation in the three years following the date of death of the decedent.
(9) The estate and the qualified heir elect to treat the property as qualified small business
property and agree, in the form prescribed by the commissioner, to pay the recapture tax
under subdivision 11, if applicable.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after December 31, 2017.
new text end
Sec. 27.
Minnesota Statutes 2018, section 291.03, subdivision 10, is amended to read:
Subd. 10.
Qualified farm property.
Property satisfying all of the following requirements
is qualified farm property:
(1) The value of the property was included in the federal adjusted taxable estate.
(2) The property consists of agricultural land and is owned by a person or entity that is
either not subject to or is in compliance with section 500.24.
(3) For property taxes payable in the taxable year of the decedent's death, the property
is classified as class 2a property under section 273.13, subdivision 23, and is classified as
agricultural homestead, agricultural relative homestead, or special agricultural homestead
under section 273.124.
(4) The decedentnew text begin or the decedent's spousenew text end continuously owned the property,new text begin or an
undivided or joint interest in the property,new text end including property the decedentnew text begin or the decedent's
spousenew text end is deemed to own under sections 2036, 2037, deleted text begin anddeleted text end 2038new text begin , 2040, or 2044new text end of the Internal
Revenue Code,new text begin or under subdivision 1d,new text end for the three-year period ending on the date of
death of the decedent either by ownership of the agricultural land or pursuant to holding an
interest in an entity that is not subject to or is in compliance with section 500.24.new text begin For the
purposes of the three-year holding period under this clause, any ownership by the decedent's
spouse, whether the spouse predeceases or survives the decedent, is attributed to the decedent.
new text end
(5) The property is classified for property tax purposes as class 2a property under section
273.13, subdivision 23, for three years following the date of death of the decedent.
(6) The estate and the qualified heir elect to treat the property as qualified farm property
and agree, in a form prescribed by the commissioner, to pay the recapture tax under
subdivision 11, if applicable.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after December 31, 2017.
new text end
Sec. 28. new text begin SPECIAL WAIVER OF INCOME TAX PENALTIES FOR TAX YEARS
2018 AND 2019.
new text end
new text begin
(a) For taxable years beginning after December 31, 2017, and before January 1, 2020,
no addition to tax is imposed under Minnesota Statutes, section 289A.25, subdivision 2, if
the tax shown on the return for the taxable year or, if no return is filed, the tax, reduced by
the credits allowable, is less than $1,000. This paragraph applies only to taxpayers who
submit a request for a waiver of addition to tax due under Minnesota Statutes, section
289A.25, subdivision 2. The request for waiver must attest that the underpayment of estimated
tax for the taxable year is due to uncertainties in tax planning resulting from the enactment
of Public Law 115-97. The request for waiver must be in a form and manner prescribed by
the commissioner of revenue.
new text end
new text begin
(b) In the case of taxpayers who do not timely submit a request for a waiver under
paragraph (a), the provisions of Minnesota Statutes, section 289A.25, subdivision 4, apply
for taxable years beginning after December 31, 2017, and before January 1, 2020.
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. new text begin APPLICATION OF ANGEL TAX CREDIT FOR TAXABLE YEAR 2019.
new text end
new text begin
Applications for (1) certification as a qualified small business, qualified investor, or
qualified fund under Minnesota Statutes, section 116J.8737, subdivisions 2, 3, and 4, and
(2) the credit under Minnesota Statutes, section 116J.8737, subdivision 5, for taxable year
2019 must be made available on the Department of Employment and Economic
Development's website by September 1, 2019. The provisions of Minnesota Statutes, section
116J.8737, generally apply to the taxable year 2019 extension of the credit in sections 1
and 2.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 3
SALES AND USE TAXES
Section 1.
Minnesota Statutes 2018, section 38.27, is amended by adding a subdivision
to read:
new text begin Subd. 4. new text end
new text begin Use of a portion of county fair revenues. new text end
new text begin
A county agricultural society must
annually determine the amount of sales tax savings attributable to section 297A.70,
subdivision 21. If the county agricultural society owns its own fairgrounds, it must use the
amount equal to the sales tax savings to maintain, improve, or expand society owned
buildings and facilities on the fairgrounds; otherwise it must transfer this amount to the
owner of the fairgrounds. An owner that receives a transfer of money under this subdivision
must use the transferred amount to maintain, improve, and expand entity owned buildings
and facilities on the county fairgrounds.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 2.
Minnesota Statutes 2018, section 289A.20, subdivision 4, is amended to read:
Subd. 4.
Sales and use tax.
(a) The taxes imposed by chapter 297A are due and payable
to the commissioner monthly on or before the 20th day of the month following the month
in which the taxable event occurred, or following another reporting period as the
commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f)
or (g), except that use taxes due on an annual use tax return as provided under section
289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30new text begin ,
except a vendor of construction materials as defined in paragraph (e),new text end 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 81.4 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) $10,000 or more, but less than $250,000 during a fiscal year ending June 30, 2013,
and fiscal years thereafter, must remit by electronic means all liabilities on returns due for
periods beginning in all subsequent calendar years on or before the 20th day of the month
following the month in which the taxable event occurred, or on or before the 20th day of
the month following the month in which the sale is reported under section 289A.18,
subdivision 4; or
(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years
thereafter, must remit by electronic means all liabilities in the manner provided in paragraph
(a) on returns due for periods beginning in the subsequent calendar year, except for 81.4
percent of the estimated June liability, which is due two business days before June 30. The
remaining amount of the June liability is due on August 20.
(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious
beliefs from paying electronically shall be allowed to remit the payment by mail. The filer
must notify the commissioner of revenue of the intent to pay by mail before doing so on a
form prescribed by the commissioner. No extra fee may be charged to a person making
payment by mail under this paragraph. The payment must be postmarked at least two business
days before the due date for making the payment in order to be considered paid on a timely
basis.
new text begin
(e) For the purposes of paragraph (b), "vendor of construction materials" means a business
that is classified in the following business groups according to the North American Industrial
Classification System:
new text end
new text begin
(1) 3211 - sawmills and wood preservation;
new text end
new text begin
(2) 3212 - veneer, plywood, and wood products manufacturing;
new text end
new text begin
(3) 32191 - millwork manufacturing;
new text end
new text begin
(4) 3273 - cement and concrete product manufacturing; and
new text end
new text begin
(5) 4233 - lumber and other construction materials merchant wholesalers.
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, 2019.
new text end
Sec. 3.
Minnesota Statutes 2018, section 297A.67, is amended by adding a subdivision to
read:
new text begin Subd. 37. new text end
new text begin Ticket purchasing rights to collegiate events. new text end
new text begin
The sale of the privilege of
admission under section 297A.61, subdivision 3, paragraph (g), clause (1), does not include
consideration paid for the right to purchase a ticket to a collegiate athletic event in a preferred
area, and the sale of the right to purchase a ticket is exempt provided that:
new text end
new text begin
(1) the consideration paid for the right to purchase in the preferred area is used entirely
to support student scholarship costs;
new text end
new text begin
(2) the consideration paid for the right to purchase in the preferred area is separately
stated from the admission price; and
new text end
new text begin
(3) the admission price is equal to or greater than the highest priced general admission
ticket for the closest seat not in the preferred area.
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, 2019.
new text end
Sec. 4.
Minnesota Statutes 2018, section 297A.67, is amended by adding a subdivision to
read:
new text begin Subd. 38. new text end
new text begin Certain herbicides. new text end
new text begin
Purchases of herbicides authorized for use pursuant to
an invasive aquatic plant management permit as defined under section 103G.615 are exempt
if purchased by a lakeshore property owner or an association of lakeshore property owners
organized under chapter 317A.
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, 2019.
new text end
Sec. 5.
Minnesota Statutes 2018, section 297A.70, subdivision 10, is amended to read:
Subd. 10.
Nonprofit tickets or admissions.
(a) Tickets or admissions to an event are
exempt if all the gross receipts are recorded as such, in accordance with generally accepted
accounting principles, on the books of one or more organizations whose primary mission
is to provide an opportunity for citizens of the state to participate in the creation, performance,
or appreciation of the arts, and provided that each organization is:
(1) an organization described in section 501(c)(3) of the Internal Revenue Code in which
voluntary contributions make up at least five percent of the organization's annual revenue
in its most recently completed 12-month fiscal year, or in the current year if the organization
has not completed a 12-month fiscal year;
(2) a municipal board that promotes cultural and arts activities; or
(3) the University of Minnesota, a state college and university, or a private nonprofit
college or university provided that the event is held at a facility owned by the educational
institution holding the event.
The exemption only applies if the entire proceeds, after reasonable expenses, are used solely
to provide opportunities for citizens of the state to participate in the creation, performance,
or appreciation of the arts.
(b) Tickets or admissions to the premises of the Minnesota Zoological Garden are exempt,
provided that the exemption under this paragraph does not apply to tickets or admissions
to performances or events held on the premises unless the performance or event is sponsored
and conducted exclusively by the Minnesota Zoological Board or employees of the Minnesota
Zoological Garden.
new text begin
(c) Tickets or admissions to a performance or event on the premises of a tax-exempt
organization under section 501(c)(3) of the Internal Revenue Code are exempt if:
new text end
new text begin
(1) the nonprofit organization was established to preserve Minnesota's rural agricultural
heritage and focuses on educating the public about rural history and how farms in Minnesota
helped to provide food for the nation and the world;
new text end
new text begin
(2) the premises of the nonprofit organization is at least 115 acres;
new text end
new text begin
(3) the performance or event is sponsored and conducted exclusively by volunteers,
employees of the nonprofit organization, or members of the board of directors of the nonprofit
organization; and
new text end
new text begin
(4) the performance or event is consistent with the nonprofit organization's purposes
under section 501(c)(3) of the Internal Revenue Code.
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.
Minnesota Statutes 2018, section 297A.70, subdivision 20, is amended to read:
Subd. 20.
Ice arenas and rinks.
Sales to organizations that exist primarily for the purpose
of new text begin owning or new text end operating ice arenas or rinks that are new text begin (1) new text end part of new text begin either new text end the Duluth Heritage
Sports Centernew text begin or the David M. Thaler Sports Center;new text end and new text begin (2) new text end are used for youth and high
school programsnew text begin ,new text end are exempt if the organization is a private, nonprofit corporation exempt
from federal income taxation under section 501(c)(3) of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2019.
new text end
Sec. 7.
Minnesota Statutes 2018, section 297A.70, is amended by adding a subdivision to
read:
new text begin Subd. 21. new text end
new text begin County agricultural society sales at county fairs. new text end
new text begin
Sales by a county
agricultural society during a regularly scheduled county fair are exempt. For purposes of
this subdivision, sales include admissions to and parking at the county fairgrounds,
admissions to separately ticketed events run by the county agricultural society, and
concessions and other sales made by employees or volunteers of the county agricultural
society on the county fairgrounds. This exemption does not apply to sales or events by a
county agricultural society held at a time other than at the time of the regularly scheduled
county fair, or events not held on the county fairgrounds.
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, 2019.
new text end
Sec. 8.
Minnesota Statutes 2018, section 297A.71, is amended by adding a subdivision to
read:
new text begin Subd. 51. new text end
new text begin Properties destroyed by fire. new text end
new text begin
(a) Building materials and supplies used or
consumed in, and equipment incorporated into, the construction or replacement of real
property affected by, and capital equipment to replace equipment destroyed in, the fire on
March 11, 2018, in the city of Mazeppa are exempt. The tax must be imposed and collected
as if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner
provided in section 297A.75. For purposes of this subdivision, "capital equipment" includes
durable equipment used in a restaurant for food storage, preparation, and serving.
new text end
new text begin
(b) The exemption under this subdivision applies to sales and purchases made after
March 11, 2018, and before January 1, 2022.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from March 11, 2018.
new text end
Sec. 9.
Minnesota Statutes 2018, section 297A.71, is amended by adding a subdivision to
read:
new text begin Subd. 52. new text end
new text begin Construction; certain local government facilities. new text end
new text begin
(a) Materials and supplies
used in and equipment incorporated into the construction, reconstruction, upgrade, expansion,
or remodeling of the following local government owned facilities are exempt:
new text end
new text begin
(1) a new fire station, which includes firefighting, emergency management, public safety
training, and other public safety facilities in the city of Monticello if materials, supplies,
and equipment are purchased after January 31, 2019, and before January 1, 2022;
new text end
new text begin
(2) a new fire station, which includes firefighting and public safety training facilities
and public safety facilities, in the city of Inver Grove Heights if materials, supplies, and
equipment are purchased after June 30, 2018, and before January 1, 2021;
new text end
new text begin
(3) a fire station and police station, including access roads, lighting, sidewalks, and
utility components, on or adjacent to the property on which the fire station or police station
are located that are necessary for safe access to and use of those buildings, in the city of
Minnetonka if materials, supplies, and equipment are purchased after May 23, 2019, and
before January 1, 2021; and
new text end
new text begin
(4) the school building in Independent School District No. 414, Minneota, if materials,
supplies, and equipment are purchased after January 1, 2018, and before January 1, 2021.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied and then refunded in the manner provided in section 297A.75.
new text end
new text begin
(c) The total refund for the project listed in paragraph (a), clause (3), must not exceed
$850,000.
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 retroactively to sales and purchases made during the time periods listed for each
project in paragraph (a).
new text end
Sec. 10.
Minnesota Statutes 2018, section 297A.75, subdivision 1, is amended to read:
Subdivision 1.
Tax collected.
The tax on the gross receipts from the sale of the following
exempt items must be imposed and collected as if the sale were taxable and the rate under
section 297A.62, subdivision 1, applied. The exempt items include:
(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;
(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14;
(3) building materials for correctional facilities under section 297A.71, subdivision 3;
(4) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;
(5) elevators and building materials exempt under section 297A.71, subdivision 12;
(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;
(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;
(8) equipment and materials used for the generation, transmission, and distribution of
electrical energy and an aerial camera package exempt under section 297A.68, subdivision
37;
(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);
(10) materials, supplies, and equipment for construction or improvement of projects and
facilities under section 297A.71, subdivision 40;
(11) materials, supplies, and equipment for construction, improvement, or expansion
of:
(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014,
section 297A.71, subdivision 42;
(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
45;
(iii) a research and development facility exempt under Minnesota Statutes 2014, section
297A.71, subdivision 46; and
(iv) an industrial measurement manufacturing and controls facility exempt under
Minnesota Statutes 2014, section 297A.71, subdivision 47;
(12) enterprise information technology equipment and computer software for use in a
qualified data center exempt under section 297A.68, subdivision 42;
(13) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
(14) items purchased for use in providing critical access dental services exempt under
section 297A.70, subdivision 7, paragraph (c);
(15) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44;
(16) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 49; deleted text begin and
deleted text end
(17) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 50, paragraph (b)new text begin , and subdivision 51;
and
new text end
new text begin (18) building materials, equipment, and supplies for constructing, remodeling, expanding,
or improving public safety facilities exempt under section 297A.71, subdivision 52new 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. 11.
Minnesota Statutes 2018, section 297A.75, subdivision 2, is amended to read:
Subd. 2.
Refund; eligible persons.
Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
be paid to the applicant. Only the following persons may apply for the refund:
(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;
(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
property;
(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
joint venture of municipal electric utilities;
(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying
business;
(8) for subdivision 1, clauses (9), (10), deleted text begin anddeleted text end (13), new text begin and (18), new text end the applicant must be the
governmental entity that owns or contracts for the project or facility;
(9) for subdivision 1, clause (16), the applicant must be the owner or developer of the
building or project; and
(10) for subdivision 1, clause (17), the applicant must be the owner or developer of the
building or project.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2018, section 297A.75, subdivision 3, is amended to read:
Subd. 3.
Application.
(a) The application must include sufficient information to permit
the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clauses (3) to (13) or (15) to deleted text begin (17)deleted text end new text begin (18)new text end , the contractor,
subcontractor, or builder must furnish to the refund applicant a statement including the cost
of the exempt items and the taxes paid on the items unless otherwise specifically provided
by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
this section.
(b) An applicant may not file more than two applications per calendar year for refunds
for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13.
Minnesota Statutes 2018, section 297A.77, subdivision 3, is amended to read:
Subd. 3.
Tax must be remitted.
The tax collected by a retailer under this sectionnew text begin , except
for the amount allowed to be retained by the seller under section 297A.816,new text end must be remitted
to the commissioner as provided in chapter 289A and this chapter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales taxes remitted after June 30,
2019.
new text end
Sec. 14.
new text begin
[297A.816] VENDOR ALLOWANCE.
new text end
new text begin Subdivision 1. new text end
new text begin Eligibility. new text end
new text begin
(a) A qualified retailer may retain a portion of sales tax
collected as a vendor allowance in compensation for the costs of collecting and administering
the tax under this chapter. This section applies only if the tax minus the vendor allowance
is both reported and remitted to the commissioner in a timely fashion as required under
chapter 289A.
new text end
new text begin
(b) For purposes of this section, "qualified retailer" means a retailer not subject to the
remittance requirements under section 289A.20, subdivision 4, paragraph (b), but does not
include a vendor of construction materials as defined under section 289A.20, subdivision
4, paragraph (e).
new text end
new text begin Subd. 2. new text end
new text begin Tax not eligible for allowance. new text end
new text begin
Use taxes paid by the qualified retailer on the
qualified retailer's own purchases and local sales and use taxes collected by the qualified
retailer are not included in calculating the vendor allowance under this section.
new text end
new text begin Subd. 3. new text end
new text begin Calculation of allowance; minimum amount. new text end
new text begin
The amount of the vendor
allowance is equal to the greater of the following amounts, calculated for each reporting
period, provided that the vendor allowance must not reduce the tax owed in the reporting
period to less than zero:
new text end
new text begin
(1) $5; or
new text end
new text begin
(2) one-half of one percent of the tax collected in the reporting period.
new text end
new text begin Subd. 4. new text end
new text begin Transfer to legacy fund. new text end
new text begin
The commissioner shall determine the amount of tax
deposited under the Minnesota Constitution, article XI, section 15, without regard to the
allowance under this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales taxes remitted after June 30,
2019.
new text end
Sec. 15.
Laws 2017, First Special Session chapter 1, article 3, section 32, the effective
date, is amended to read:
EFFECTIVE DATE.
Paragraph (a) is effective retroactively for sales and purchases
made after September 30, 2016, and before January 1, deleted text begin 2019deleted text end new text begin 2023new text end . Paragraph (b) is effective
for sales and purchases made after September 30, 2016, and before July 1, 2017.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from January 1, 2019.
new text end
ARTICLE 4
PROPERTY TAX
Section 1.
Minnesota Statutes 2018, section 103D.905, subdivision 5, is amended to read:
Subd. 5.
Construction or implementation fund.
(a) A construction or implementation
fund consists of:
(1) the proceeds of watershed district bonds or notes or of the sale of county bonds;
(2) construction or implementation loans new text begin or grants new text end from the deleted text begin Pollution Control Agency
under sections 103F.701 to 103F.755,deleted text end new text begin statenew text end or from any agency of the federal government;
and
(3) special assessments, storm water charges, loan repayments, and ad valorem tax levies
levied or to be levied to supply funds for the construction or implementation of the projects
of the watershed district, including reservoirs, ditches, dikes, canals, channels, storm water
facilities, sewage treatment facilities, wells, and other works, and the expenses incident to
and connected with the construction or implementation.
(b) Construction or implementation loansnew text begin or grantsnew text end from the deleted text begin Pollution Control Agency
under sections 103F.701 to 103F.755,deleted text end new text begin statenew text end or from an agency of the federal government
may be repaid from the proceeds of watershed district bonds or notes or from the collections
of storm water charges, loan repayments, ad valorem tax levies, or special assessments on
properties benefited by the project.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2020
and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2018, section 103D.905, subdivision 9, is amended to read:
Subd. 9.
Project tax levy.
new text begin (a) new text end In addition to other tax levies provided in this section or
in any other law, a watershed district may levy a tax:
(1) to pay the costs of projects undertaken by the watershed district deleted text begin whichdeleted text end new text begin thatnew text end are deleted text begin to bedeleted text end
funded, in whole or in part, with deleted text begin the proceeds ofdeleted text end new text begin money appropriated by law fornew text end grants or
deleted text begin construction or implementationdeleted text end loans deleted text begin under sections 103F.701 to 103F.755deleted text end new text begin to the districtnew text end ;
(2) to pay the principal of, or premium or administrative surcharge, if any, and interest
ondeleted text begin , thedeleted text end bonds deleted text begin anddeleted text end new text begin ornew text end notes issued by the watershed district deleted text begin pursuant to section 103F.725deleted text end new text begin to
repay such loansnew text end ; or
(3) to repay deleted text begin the construction or implementationdeleted text end new text begin suchnew text end loans deleted text begin under sections 103F.701 to
103F.755deleted text end .
new text begin (b) new text end Taxes levied with respect to payment of bonds and notes deleted text begin shalldeleted text end new text begin mustnew text end comply with
section 475.61.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2020
and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2018, section 138.053, is amended to read:
138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.
The governing body of any home rule charter or statutory city or town may annually
appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
market value, derived from ad valorem taxes on property or other revenues, to be paid to
the historical society of its respective new text begin city, town, or new text end county to be used for the promotion of
historical work and to aid in defraying the expenses of carrying on the historical work in
the new text begin city, town, or new text end county. No city or town may appropriate any funds for the benefit of any
historical society unless the society is affiliated with and approved by the Minnesota
Historical Society.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2018, section 197.603, subdivision 2, is amended to read:
Subd. 2.
Records; data privacy.
Pursuant to chapter 13 the county veterans service
officer is the responsible authority with respect to all records in the officer's custody. The
data on clients' applications for assistance is private data on individuals, as defined in section
13.02, subdivision 12.new text begin The county veterans service officer may disclose to the county or
local assessor private data necessary to determine a client's eligibility for the disabled
veteran's homestead market value exclusion under section 273.13, subdivision 34.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2018, section 272.02, subdivision 49, is amended to read:
Subd. 49.
Agricultural historical society property.
Property is exempt from taxation
if it is owned by a nonprofit charitable or educational organization that qualifies for
exemption under section 501(c)(3) of the Internal Revenue Code and meets the following
criteria:
(1) the property is primarily used for storing and exhibiting tools, equipment, and artifacts
useful in providing an understanding of local or regional agricultural history. Primary use
is determined each year based on the number of days the property is used solely for storage
and exhibition purposes;
(2) the property is limited to a maximum of deleted text begin 20deleted text end new text begin 40new text end acres per owner per county, but
includes the land and any taxable structures, fixtures, and equipment on the land;
(3) the property is not used for a revenue-producing activity for more than ten days in
each calendar year; and
(4) the property is not used for residential purposes on either a temporary or permanent
basis.
new text begin
For assessment year 2019 only, an exemption application under this subdivision must be
filed with the county assessor by July 1, 2019.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2019,
for taxes payable in 2020, and thereafter.
new text end
Sec. 6.
Minnesota Statutes 2018, section 272.02, is amended by adding a subdivision to
read:
new text begin Subd. 102. new text end
new text begin Certain property owned by an Indian tribe. new text end
new text begin
(a) Property is exempt that:
new text end
new text begin
(1) is located in a city of the first class with a population of more than 380,000 as of the
2010 federal census;
new text end
new text begin
(2) was on January 1, 2016, and is for the current assessment, owned by a federally
recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota;
and
new text end
new text begin
(3) is used exclusively as a pharmacy, as defined in section 151.01, subdivision 2.
new text end
new text begin
(b) Property that qualifies for the exemption under this subdivision is limited to parcels
and structures that do not exceed, in the aggregate, 4,000 square feet. Property acquired for
single-family housing, market-rate apartments, agriculture, or forestry does not qualify for
this exemption.
new text end
new text begin
For assessment year 2019 only, an exemption application under this subdivision must be
filed with the county assessor by July 1, 2019. The exemption created by this subdivision
expires with taxes payable in 2029.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2020
and thereafter.
new text end
Sec. 7.
Minnesota Statutes 2018, section 272.02, is amended by adding a subdivision to
read:
new text begin Subd. 103. new text end
new text begin Licensed child care facility. new text end
new text begin
Property used as a licensed child care facility
that accepts families participating in the child care assistance program under chapter 119B,
and that is owned and operated by a nonprofit charitable organization that qualifies for tax
exemption under section 501(c)(3) of the Internal Revenue Code, is exempt. For the purposes
of this subdivision, "licensed child care facility" means a child care center licensed under
Minnesota Rules, chapter 9503, or a facility used to provide licensed family day care or
group family day care as defined under Minnesota Rules, chapter 9502.
new text end
new text begin
For assessment year 2019 only, an exemption application under this subdivision must be
filed with the county assessor by July 1, 2019.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2019,
for taxes payable in 2020.
new text end
Sec. 8.
Minnesota Statutes 2018, section 273.124, subdivision 3a, is amended to read:
Subd. 3a.
Manufactured home park cooperative.
(a) When a manufactured home park
is owned by a corporation or association organized under chapter 308A or 308B, and each
person who owns a share or shares in the corporation or association is entitled to occupy a
lot within the park, the corporation or association may claim homestead treatment for the
park. Each lot must be designated by legal description or number, and each lot is limited to
not more than one-half acre of land.
(b) The manufactured home park shall be entitled to homestead treatment if all of the
following criteria are met:
(1) the occupant or the cooperative corporation or association is paying the ad valorem
property taxes and any special assessments levied against the land and structure either
directly, or indirectly through dues to the corporation or association; and
(2) the corporation or association organized under chapter 308A or 308B is wholly
owned by persons having a right to occupy a lot owned by the corporation or association.
(c) A charitable corporation, organized under the laws of Minnesota with no outstanding
stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status,
qualifies for homestead treatment with respect to a manufactured home park if its members
hold residential participation warrants entitling them to occupy a lot in the manufactured
home park.
(d) "Homestead treatment" under this subdivision means the classification rate provided
for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause
(5), item (ii)deleted text begin .deleted text end new text begin , andnew text end the homestead market value exclusion under section 273.13, subdivision
35, does not apply deleted text begin and the property taxes assessed against the park shall not be included in
the determination of taxes payable for rent paid under section 290A.03deleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with claims for taxes payable
in 2020.
new text end
Sec. 9.
Minnesota Statutes 2018, section 273.124, subdivision 8, is amended to read:
Subd. 8.
Homestead owned by or leased to family farm corporation, joint farm
venture, limited liability company, or partnership.
(a) Each family farm corporation;
each joint family farm venture; and each limited liability company or partnership which
operates a family farm; is entitled to class 1b under section 273.13, subdivision 22, paragraph
(b), or class 2a assessment for one homestead occupied by a shareholder, member, or partner
thereof who is residing on the land, and actively engaged in farming of the land owned by
the family farm corporation, joint family farm venture, limited liability company, or
partnership. Homestead treatment applies even ifnew text begin :
new text end
new text begin (1)new text end legal title to the property is in the name of the family farm corporation, joint family
farm venture, limited liability company, or partnership, and not in the name of the person
residing on itdeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(2) the family farm is operated by a family farm corporation, joint family farm venture,
or limited liability company other than the family farm corporation, joint family farm venture,
or limited liability company that owns the land, provided that:
new text end
new text begin
(i) the shareholder, member, or partner residing on and actively engaged in farming the
land is a shareholder, member, or partner of the family farm corporation, joint family farm
venture, or limited liability company that is operating the farm and;
new text end
new text begin
(ii) more than half of the shareholders, members, or partners of each family farm
corporation, joint family farm venture, or limited liability company are persons or spouses
of persons who are a qualifying relative under section 273.124, subdivision 1, paragraphs
(c) and (d).
new text end
"Family farm corporation," "family farm," and "partnership operating a family farm"
have the meanings given in section 500.24, except that the number of allowable shareholders,
members, or partners under this subdivision shall not exceed 12. "Limited liability company"
has the meaning contained in sections 322C.0102, subdivision 12, and 500.24, subdivision
2, paragraphs (l) and (m). "Joint family farm venture" means a cooperative agreement among
two or more farm enterprises authorized to operate a family farm under section 500.24.
(b) In addition to property specified in paragraph (a), any other residences owned by
family farm corporations, joint family farm ventures, limited liability companies, or
partnerships described in paragraph (a) which are located on agricultural land and occupied
as homesteads by its shareholders, members, or partners who are actively engaged in farming
on behalf of that corporation, joint farm venture, limited liability company, or partnership
must also be assessed as class 2a property or as class 1b property under section 273.13.
(c) Agricultural property that is owned by a member, partner, or shareholder of a family
farm corporation or joint family farm venture, limited liability company operating a family
farm, or by a partnership operating a family farm and leased to the family farm corporation,
limited liability company, partnership, or joint farm venture, as defined in paragraph (a), is
eligible for classification as class 1b or class 2a under section 273.13, if the owner is actually
residing on the property, and is actually engaged in farming the land on behalf of that
corporation, joint farm venture, limited liability company, or partnership. This paragraph
applies without regard to any legal possession rights of the family farm corporation, joint
family farm venture, limited liability company, or partnership under the lease.
(d) Nonhomestead agricultural property that is owned by a family farm corporation,
joint farm venture, limited liability company, or partnership; and located not farther than
four townships or cities, or combination thereof, from agricultural land that is owned, and
used for the purposes of a homestead by an individual who is a shareholder, member, or
partner of the corporation, venture, company, or partnership; is entitled to receive the first
tier homestead classification rate on any remaining market value in the first homestead class
tier that is in excess of the market value of the shareholder's, member's, or partner's class 2
agricultural homestead property, if the owner, or someone acting on the owner's behalf
notifies the county assessor by July 1 that the property may be eligible under this paragraph
for the current assessment year, for taxes payable in the following year. As used in this
paragraph, "agricultural property" means property classified as 2a under section 273.13,
along with any contiguous property classified as 2b under section 273.13, if the contiguous
2a and 2b properties are under the same ownership.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2019.
new text end
Sec. 10.
Minnesota Statutes 2018, section 273.124, subdivision 14, is amended to read:
Subd. 14.
Agricultural homesteads; special provisions.
(a) Real estate of less than ten
acres that is the homestead of its owner must be classified as class 2a under section 273.13,
subdivision 23, paragraph (a), if:
(1) the parcel on which the house is located is contiguous on at least two sides to (i)
agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
Service, or (iii) land administered by the Department of Natural Resources on which in lieu
taxes are paid under sections 477A.11 to 477A.14;
(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
acres;
(3) the noncontiguous land is located not farther than four townships or cities, or a
combination of townships or cities from the homestead; and
(4) the agricultural use value of the noncontiguous land and farm buildings is equal to
at least 50 percent of the market value of the house, garage, and one acre of land.
Homesteads initially classified as class 2a under the provisions of this paragraph shall
remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
properties, as long as the homestead remains under the same ownership, the owner owns a
noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
value qualifies under clause (4). Homestead classification under this paragraph is limited
to property that qualified under this paragraph for the 1998 assessment.
(b)(i) Agricultural property shall be classified as the owner's homestead, to the same
extent as other agricultural homestead property, if all of the following criteria are met:
(1) the agricultural property consists of at least 40 acres including undivided government
lots and correctional 40's;
(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner
or of the owner's spouse, is actively farming the agricultural property, either on the person's
own behalf as an individual or on behalf of a partnership operating a family farm, family
farm corporation, joint family farm venture, or limited liability company of which the person
is a partner, shareholder, or member;
(3) both the owner of the agricultural property and the person who is actively farming
the agricultural property under clause (2), are Minnesota residents;
(4) neither the owner nor the spouse of the owner claims another agricultural homestead
in Minnesota; and
(5) neither the owner nor the person actively farming the agricultural property lives
farther than four townships or cities, or a combination of four townships or cities, from the
agricultural property, except that if the owner or the owner's spouse is required to live in
employer-provided housing, the owner or owner's spouse, whichever is actively farming
the agricultural property, may live more than four townships or cities, or combination of
four townships or cities from the agricultural property.
The relationship under this paragraph may be either by blood or marriage.
(ii) deleted text begin Agricultural property held by a trustee under a trust is eligible for agricultural
homestead classification under this paragraph if the qualifications in clause (i) are met,
except that "owner" means the grantor of the trust.
deleted text end
deleted text begin (iii)deleted text end Property containing the residence of an owner who owns qualified property under
clause (i) shall be classified as part of the owner's agricultural homestead, if that property
is also used for noncommercial storage or drying of agricultural crops.
deleted text begin (iv)deleted text end new text begin (iii)new text end As used in this paragraph, "agricultural property" means class 2a property and
any class 2b property that is contiguous to and under the same ownership as the class 2a
property.
(c) Noncontiguous land shall be included as part of a homestead under section 273.13,
subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached
land is located in the same township or city, or not farther than four townships or cities or
combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
and, if the homestead is located in another county, the taxpayer must also notify the assessor
of the other county.
(d) Agricultural land used for purposes of a homestead and actively farmed by a person
holding a vested remainder interest in it must be classified as a homestead under section
273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other
dwellings on the land used for purposes of a homestead by persons holding vested remainder
interests who are actively engaged in farming the property, and up to one acre of the land
surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
must also be assessed class 2a.
(e) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the April 1997 floods;
(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
Wilkin;
(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1997 assessment year and continue to be used for
agricultural purposes;
(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.
(f) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified
agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by a March 29, 1998, tornado;
(2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur,
Nicollet, Nobles, or Rice;
(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1998 assessment year;
(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to a March 29,
1998, tornado, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
owner must notify the assessor by December 1, 1998. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.
(g) Agricultural property of a family farm corporation, joint family farm venture, family
farm limited liability company, or partnership operating a family farm as described under
subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
property, if all of the following criteria are met:
(1) the property consists of at least 40 acres including undivided government lots and
correctional 40's;
(2) a shareholder, member, or partner of that entity is actively farming the agricultural
property;
(3) that shareholder, member, or partner who is actively farming the agricultural property
is a Minnesota resident;
(4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
member, or partner claims another agricultural homestead in Minnesota; and
(5) that shareholder, member, or partner does not live farther than four townships or
cities, or a combination of four townships or cities, from the agricultural property.
Homestead treatment applies under this paragraph for property leased to a family farm
corporation, joint farm venture, limited liability company, or partnership operating a family
farm if legal title to the property is in the name of an individual who is a member, shareholder,
or partner in the entity.
(h) To be eligible for the special agricultural homestead under this subdivision, an initial
full application must be submitted to the county assessor where the property is located.
Owners and the persons who are actively farming the property shall be required to complete
only a one-page abbreviated version of the application in each subsequent year provided
that none of the following items have changed since the initial application:
(1) the day-to-day operation, administration, and financial risks remain the same;
(2) the owners and the persons actively farming the property continue to live within the
four townships or city criteria and are Minnesota residents;
(3) the same operator of the agricultural property is listed with the Farm Service Agency;
(4) a Schedule F or equivalent income tax form was filed for the most recent year;
(5) the property's acreage is unchanged; and
(6) none of the property's acres have been enrolled in a federal or state farm program
since the initial application.
The owners and any persons who are actively farming the property must include the
appropriate Social Security numbers, and sign and date the application. If any of the specified
information has changed since the full application was filed, the owner must notify the
assessor, and must complete a new application to determine if the property continues to
qualify for the special agricultural homestead. The commissioner of revenue shall prepare
a standard reapplication form for use by the assessors.
(i) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified
agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by the August 2007 floods;
(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
Wabasha, or Winona;
(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2007 assessment year;
(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to the August 2007
floods, and the owner furnishes the assessor any information deemed necessary by the
assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
owner must notify the assessor by December 1, 2008. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.
(j) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the March 2009 floods;
(2) the property is located in the county of Marshall;
(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2008 assessment year and continue to be used for
agricultural purposes;
(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2019.
new text end
Sec. 11.
Minnesota Statutes 2018, section 273.124, subdivision 21, is amended to read:
Subd. 21.
Trust property; homestead.
Real or personal propertynew text begin , including agricultural
property,new text end held by a trustee under a trust is eligible for classification as homestead property
if the property satisfies the requirements of paragraph (a), (b), (c), deleted text begin ordeleted text end (d)new text begin , or (e)new text end .
(a) The grantor or surviving spouse of the grantor of the trust occupies and uses the
property as a homestead.
(b) A relative or surviving relative of the grantor who meets the requirements of
subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, paragraph
(d), in the case of agricultural property, occupies and uses the property as a homestead.
(c) A family farm corporation, joint farm venture, limited liability company, or partnership
operating a family farm in which the grantor or the grantor's surviving spouse is a
shareholder, member, or partner rents the property; and, either (1) a shareholder, member,
or partner of the corporation, joint farm venture, limited liability company, or partnership
occupies and uses the property as a homestead; or (2) the property is at least 40 acres,
including undivided government lots and correctional 40's, and a shareholder, member, or
partner of the tenant-entity is actively farming the property on behalf of the corporation,
joint farm venture, limited liability company, or partnership.
(d) A person who has received homestead classification for property taxes payable in
2000 on the basis of an unqualified legal right under the terms of the trust agreement to
occupy the property as that person's homestead and who continues to use the property as a
homestead; or, a person who received the homestead classification for taxes payable in 2005
under paragraph (c) who does not qualify under paragraph (c) for taxes payable in 2006 or
thereafter but who continues to qualify under paragraph (c) as it existed for taxes payable
in 2005.
new text begin
(e) The qualifications under subdivision 14, paragraph (b), clause (i), are met. For
purposes of this paragraph, "owner" means the grantor of the trust or the surviving spouse
of the grantor.
new text end
new text begin
(f) For purposes of this subdivision, the following terms have the meanings given them:
new text end
new text begin
(1) "agricultural property" means the house, garage, other farm buildings and structures,
and agricultural land;
new text end
new text begin
(2) "agricultural land" has the meaning given in section 273.13, subdivision 23, except
that the phrases "owned by same person" or "under the same ownership" as used in that
subdivision mean and include contiguous tax parcels owned by:
new text end
new text begin
(i) an individual and a trust of which the individual, the individual's spouse, or the
individual's deceased spouse is the grantor; or
new text end
new text begin
(ii) different trusts of which the grantors of each trust are any combination of an
individual, the individual's spouse, or the individual's deceased spouse; and
new text end
deleted text begin For purposes of this subdivision,deleted text end new text begin (3)new text end "grantor" deleted text begin is defined asdeleted text end new text begin meansnew text end the person creating
or establishing a testamentary, inter Vivos, revocable or irrevocable trust by written
instrument or through the exercise of a power of appointment.
new text begin
(g) Noncontiguous agricultural land is included as part of a homestead under this
subdivision, only if the homestead is classified as class 2a, as defined in section 273.13,
subdivision 23, and the detached land is located in the same township or city, or not farther
than four townships or cities or combination thereof from the homestead. Any taxpayer of
these noncontiguous lands must notify the county assessor that the noncontiguous land is
part of the taxpayer's homestead, and, if the homestead is located in another county, the
taxpayer must also notify the assessor of the other county.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2019.
new text end
Sec. 12.
Minnesota Statutes 2018, section 273.124, is amended by adding a subdivision
to read:
new text begin Subd. 23. new text end
new text begin Fractional homesteads. new text end
new text begin
In the case of property that is classified as part
homestead and part nonhomestead solely because not all the owners occupy or farm the
property, not all the owners have qualifying relatives occupying or farming the property,
or not all the spouses of owners occupy the property, the portions of property classified as
part homestead and part nonhomestead must correspond to the ownership percentages that
each owner has in the property, as determined by the land records in the county recorder's
office or registrar of titles. If the ownership percentages of each owner cannot be determined
by reference to the land records, the portions of property classified as part homestead and
part nonhomestead must correspond to the ownership percentages each owner would have
if they each owned an equal share of the property.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2019.
new text end
Sec. 13.
Minnesota Statutes 2018, section 273.1245, subdivision 2, is amended to read:
Subd. 2.
Disclosure.
The assessor shall disclose the data described in subdivision 1 to
the commissioner of revenue as provided by law. The assessor shall also disclose all or
portions of the data described in subdivision 1 tonew text begin :
new text end
new text begin (1)new text end the county treasurer solely for the purpose of proceeding under the Revenue Recapture
Act to recover personal property taxes owingdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(2) the county veterans service officer for the purpose of determining a person's eligibility
for the disabled veteran's homestead market value exclusion under section 273.13, subdivision
34.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2018, section 273.13, subdivision 25, is amended to read:
Subd. 25.
Class 4.
(a) Class 4a is residential real estate containing four or more units
and used or held for use by the owner or by the tenants or lessees of the owner as a residence
for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
under section 272.02, and contiguous property used for hospital purposes, without regard
to whether the property has been platted or subdivided. The market value of class 4a property
has a classification rate of 1.25 percent.
(b) Class 4b includes:
(1) residential real estate containing less than four units 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 classification rate of 1.25 percent.
(c) Class 4bb includes:
(1) nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property;
(2) a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b); and
(3) a condominium-type storage unit having an individual property identification number
that is not used for a commercial purpose.
Class 4bb property has the same classification rates as class 1a property under subdivision
22.
Property that has been classified as seasonal residential recreational property at any time
during which it has been owned by the current owner or spouse of the current owner does
not qualify for class 4bb.
(d) Class 4c property includes:
(1) except as provided in subdivision 22, paragraph (c), real and personal property
devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
for not more than 250 days in the year preceding the year of assessment. For purposes of
this clause, property is devoted to a commercial purpose on a specific day if any portion of
the property is used for residential occupancy, and a fee is charged for residential occupancy.
Class 4c property under this clause must contain three or more rental units. A "rental unit"
is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
equipped with water and electrical hookups for recreational vehicles. A camping pad offered
for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
under this clause regardless of the term of the rental agreement, as long as the use of the
camping pad does not exceed 250 days. In order for a property to be classified under this
clause, either (i) the business located on the property must provide recreational activities,
at least 40 percent of the annual gross lodging receipts related to the property must be from
business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
bookings by lodging guests during the year must be for periods of at least two consecutive
nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
providing recreational activities, or (ii) the business must contain 20 or fewer rental units,
and must be located in a township or a city with a population of 2,500 or less located outside
the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
of a state trail administered by the Department of Natural Resources. For purposes of item
(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
property also includes commercial use real property used exclusively for recreational
purposes in conjunction with other class 4c property classified under this clause and devoted
to temporary and seasonal residential occupancy for recreational purposes, up to a total of
two acres, provided the property is not devoted to commercial recreational use for more
than 250 days in the year preceding the year of assessment and is located within two miles
of the class 4c property with which it is used. In order for a property to qualify for
classification under this clause, the owner must submit a declaration to the assessor
designating the cabins or units occupied for 250 days or less in the year preceding the year
of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
share of the land on which they are located must be designated class 4c under this clause
as otherwise provided. The remainder of the cabins or units and a proportionate share of
the land on which they are located will be designated as class 3a. The owner of property
desiring designation as class 4c property under this clause must provide guest registers or
other records demonstrating that the units for which class 4c designation is sought were not
occupied for more than 250 days in the year preceding the assessment if so requested. The
portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
or meeting room, and (5) other nonresidential facility operated on a commercial basis not
directly related to temporary and seasonal residential occupancy for recreation purposes
does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
ski equipment; providing marina services, launch services, or guide services; or selling bait
and fishing tackle;
(2) qualified property used as a golf course if:
(i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
but a membership fee may not be required in order to use the property for golfing, and its
green fees for golfing must be comparable to green fees typically charged by municipal
courses; and
(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
the golf course is classified as class 3a property;
(3) real property up to a maximum of three acres of land owned and used by a nonprofit
community service oriented organization and not used for residential purposes on either a
temporary or permanent basis, provided that:
(i) the property is not used for a revenue-producing activity for more than six days in
the calendar year preceding the year of assessment; or
(ii) the organization makes annual charitable contributions and donations at least equal
to the property's previous year's property taxes and the property is allowed to be used for
public and community meetings or events for no charge, as appropriate to the size of the
facility.
For purposes of this clause:
(A) "charitable contributions and donations" has the same meaning as lawful gambling
purposes under section 349.12, subdivision 25, excluding those purposes relating to the
payment of taxes, assessments, fees, auditing costs, and utility payments;
(B) "property taxes" excludes the state general tax;
(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
Revenue Code; and
(D) "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.
Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
use of the property for social events open exclusively to members and their guests for periods
of less than 24 hours, when an admission is not charged nor any revenues are received by
the organization shall not be considered a revenue-producing activity.
The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the requirement
under item (ii) must file an application by May 1 with the assessor for eligibility for the
current year's assessment. The commissioner shall prescribe a uniform application form
and instructions;
(4) postsecondary student housing of not more than one acre of land that is owned by a
nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;
(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as
defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision
3a, and (iii) class I manufactured home parks as defined in section 327C.01, subdivision
13;
(6) real property that is actively and exclusively devoted to indoor fitness, health, social,
recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
located within the metropolitan area as defined in section 473.121, subdivision 2;
(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
section 272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and
(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
premise, prohibits commercial activity performed at the hangar.
If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
filed by the new owner with the assessor of the county where the property is located within
60 days of the sale;
(8) a privately owned noncommercial aircraft storage hangar not exempt under section
272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land abuts a public airport; and
(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
restricting the use of the premises, prohibiting commercial use or activity performed at the
hangar; and
(9) residential real estate, a portion of which is used by the owner for homestead purposes,
and that is also a place of lodging, if all of the following criteria are met:
(i) rooms are provided for rent to transient guests that generally stay for periods of 14
or fewer days;
(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
the basic room rate;
(iii) meals are not provided to the general public except for special events on fewer than
seven days in the calendar year preceding the year of the assessment; and
(iv) the owner is the operator of the property.
The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22;
(10) real property up to a maximum of three acres and operated as a restaurant as defined
under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
of its annual gross receipts from business conducted during four consecutive months. Gross
receipts from the sale of alcoholic beverages must be included in determining the property's
qualification under item (ii). The property's primary business must be as a restaurant and
not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
Owners of real property desiring 4c classification under this clause must submit an annual
declaration to the assessor by February 1 of the current assessment year, based on the
property's relevant information for the preceding assessment year;
(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
and devoted to recreational use for marina services. The marina owner must annually provide
evidence to the assessor that it provides services, including lake or river access to the public
by means of an access ramp or other facility that is either located on the property of the
marina or at a publicly owned site that abuts the property of the marina. No more than 800
feet of lakeshore may be included in this classification. Buildings used in conjunction with
a marina for marina services, including but not limited to buildings used to provide food
and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
as class 3a property; and
(12) real and personal property devoted to noncommercial temporary and seasonal
residential occupancy for recreation purposes.
Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
each parcel of noncommercial seasonal residential recreational property under clause (12)
has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
under clause (5), item (i), have the same classification rate as class 4b property, the market
value of manufactured home parks assessed under clause (5), item (ii), have a classification
rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by
shareholders in the cooperative corporation or association and a classification rate of one
percent if 50 percent or less of the lots are so occupied, and class I manufactured home
parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 percent,
(iii) commercial-use seasonal residential recreational property and marina recreational land
as described in clause (11), has a classification rate of one percent for the first $500,000 of
market value, and 1.25 percent for the remaining market value, (iv) the market value of
property described in clause (4) has a classification rate of one percent, (v) the market value
of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent,
(vi) that portion of the market value of property in clause (9) qualifying for class 4c property
has a classification rate of 1.25 percent, and (vii) property qualifying for classification under
clause (3) that is owned or operated by a congressionally chartered veterans organization
has a classification rate of one percent. The commissioner of veterans affairs must provide
a list of congressionally chartered veterans organizations to the commissioner of revenue
by June 30, 2017, and by January 1, 2018, and each year thereafter.
(e) Class 4d property is qualifying low-income rental housing certified to the assessor
by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of
the units in the building qualify as low-income rental housing units as certified under section
273.128, subdivision 3, only the proportion of qualifying units to the total number of units
in the building qualify for class 4d. The remaining portion of the building shall be classified
by the assessor based upon its use. Class 4d also includes the same proportion of land as
the qualifying low-income rental housing units are to the total units in the building. For all
properties qualifying as class 4d, the market value determined by the assessor must be based
on the normal approach to value using normal unrestricted rents.new text begin Class 4d property has a
classification rate of 0.25 percent.
new text end
deleted text begin
(f) The first tier of market value of class 4d property has a classification rate of 0.75
percent. The remaining value of class 4d property has a classification rate of 0.25 percent.
For the purposes of this paragraph, the "first tier of market value of class 4d property" means
the market value of each housing unit up to the first tier limit. For the purposes of this
paragraph, all class 4d property value must be assigned to individual housing units. The
first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is
adjusted each year by the average statewide change in estimated market value of property
classified as class 4a and 4d under this section for the previous assessment year, excluding
valuation change due to new construction, rounded to the nearest $1,000, provided, however,
that the limit may never be less than $100,000. Beginning with assessment year 2015, the
commissioner of revenue must certify the limit for each assessment year by November 1
of the previous year.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2019.
new text end
Sec. 15.
Minnesota Statutes 2018, section 273.13, subdivision 34, is amended to read:
Subd. 34.
Homestead of disabled veteran or family caregiver.
(a) All or a portion of
the market value of property owned by a veteran and serving as the veteran's homestead
under this section is excluded in determining the property's taxable market value if the
veteran has a service-connected disability of 70 percent or more as certified by the United
States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the
veteran must have been honorably discharged from the United States armed forces, as
indicated by United States Government Form DD214 or other official military discharge
papers.
(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded,
except as provided in clause (2); and
(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.
(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause
(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds
the legal or beneficial title to the homestead and permanently resides there, the exclusion
shall carry over to the benefit of the veteran's spouse deleted text begin for the current taxes payable year and
for eight additional taxes payable years ordeleted text end until such time as the spouse remarries, or sells,
transfers, or otherwise disposes of the propertydeleted text begin , whichever comes firstdeleted text end . Qualification under
this paragraph requires an application under paragraph (h), and a spouse must notify the
assessor if there is a change in the spouse's marital status, ownership of the property, or use
of the property as a permanent residence.
(d) If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service-connected cause while serving honorably in active service, as
indicated on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is entitled to the
benefit described in paragraph (b), clause (2), deleted text begin for eight taxes payable years, ordeleted text end until such
time as the spouse remarries or sells, transfers, or otherwise disposes of the propertydeleted text begin ,
whichever comes firstdeleted text end .
(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
for under paragraph (b).
(f) In the case of an agricultural homestead, only the portion of the property consisting
of the house and garage and immediately surrounding one acre of land qualifies for the
valuation exclusion under this subdivision.
(g) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 35, or classification under subdivision 22,
paragraph (b).
(h) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by deleted text begin July 1deleted text end new text begin December 15 new text end of the first assessment year for which the
exclusion is sought. For an application received after deleted text begin July 1deleted text end new text begin December 15new text end , the exclusion
shall become effective for the following assessment year. Except as provided in paragraph
(c), the owner of a property that has been accepted for a valuation exclusion must notify
the assessor if there is a change in ownership of the property or in the use of the property
as a homestead.
(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.
(j) For purposes of this subdivision:
(1) "active service" has the meaning given in section 190.05;
(2) "own" means that the person's name is present as an owner on the property deed;
(3) "primary family caregiver" means a person who is approved by the secretary of the
United States Department of Veterans Affairs for assistance as the primary provider of
personal care services for an eligible veteran under the Program of Comprehensive Assistance
for Family Caregivers, codified as United States Code, title 38, section 1720G; and
(4) "veteran" has the meaning given the term in section 197.447.
(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion
under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit
under paragraph (b), clause (2), deleted text begin for eight taxes payable years ordeleted text end until the spouse remarries
or sells, transfers, or otherwise disposes of the property if:
(1) the spouse files a first-time application within two years of the death of the service
member or by June 1, 2019, whichever is later;
(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
homestead and permanently resides there;
(3) the veteran met the honorable discharge requirements of paragraph (a); and
(4) the United States Department of Veterans Affairs certifies that:
(i) the veteran met the total (100 percent) and permanent disability requirement under
paragraph (b), clause (2); or
(ii) the spouse has been awarded dependency and indemnity compensation.
(l) The purpose of this provision of law providing a level of homestead property tax
relief for gravely disabled veterans, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.
(m) By July 1, the county veterans service officer must certify the disability rating and
permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2019,
for taxes payable in 2020 and thereafter.
new text end
Sec. 16.
Minnesota Statutes 2018, section 273.13, subdivision 35, is amended to read:
Subd. 35.
Homestead market value exclusion.
(a) Prior to determining a property's
net tax capacity under this section, property classified as class 1a or 1b under subdivision
22, and the portion of property classified as class 2a under subdivision 23 consisting of the
house, garage, and surrounding one acre of land, shall be eligible for a market value exclusion
as determined under paragraph (b).
(b) For a homestead valued at $76,000 or less, the exclusion is 40 percent of market
value. For a homestead valued between $76,000 and $413,800, the exclusion is $30,400
minus nine percent of the valuation over $76,000. For a homestead valued at $413,800 or
more, there is no valuation exclusion. The valuation exclusion shall be rounded to the nearest
whole dollar, and may not be less than zero.
(c) Any valuation exclusions or adjustments under section 273.11 shall be applied prior
to determining the amount of the valuation exclusion under this subdivision.
(d) In the case of a property that is classified as part homestead and part nonhomestead,
(i) the exclusion shall apply only to the homestead portion of the property, but (ii) if a portion
of a property is classified as nonhomestead solely because not all the owners occupy the
property, not all the owners have qualifying relatives occupying the property, or solely
because not all the spouses of owners occupy the property, the exclusion amount shall be
initially computed as if that nonhomestead portion were also in the homestead class and
then prorated to the owner-occupant's percentage of ownershipnew text begin , as determined by the land
records in the county recorder's office or registrar of titles. If ownership percentages of each
owner cannot be determined by reference to the land records, the ownership percentages
must be determined as if each owner owned an equal share of the propertynew text end . For the purpose
of this section, when an owner-occupant's spouse does not occupy the property, the
percentage of ownership for the owner-occupant spouse is one-half of the couple's ownership
percentage.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2020
and thereafter.
new text end
Sec. 17.
Minnesota Statutes 2018, section 273.1384, subdivision 2, is amended to read:
Subd. 2.
Agricultural homestead market value credit.
Property classified as agricultural
homestead under section 273.13, subdivision 23, paragraph (a), is eligible for an agricultural
credit. The credit is computed using the property's agricultural credit market value, defined
for this purpose as the property's market value excluding the market value of the house,
garage, and immediately surrounding one acre of land. The credit is equal to 0.3 percent of
the first $115,000 of the property's agricultural credit market value plus 0.1 percent of the
property's agricultural credit market value in excess of $115,000, subject to a maximum
credit of $490. In the case of property that is classified as part homestead and part
nonhomestead solely because not all the owners occupy or farm the property, not all the
owners have qualifying relatives occupying or farming the property, or solely because not
all the spouses of owners occupy the property, the credit is computed on the amount of
agricultural credit market value corresponding to the new text begin owner-occupant's new text end percentage of
deleted text begin homestead. the percentage of homestead is equal to 100 divided by the number of owners
of the property, or, in the case of a trust, the number of grantors of the trust that owns the
propertydeleted text end new text begin ownership, as determined by the land records in the county recorder's office or
registrar of titles. If ownership percentages of each owner cannot be determined by reference
to the land records, the ownership percentages must be determined as if each owner owned
an equal share of the propertynew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2020
and thereafter.
new text end
Sec. 18.
Minnesota Statutes 2018, section 273.371, subdivision 1, is amended to read:
Subdivision 1.
Report required.
Every electric light, power, gas, water, express, stage,
transportation, and pipeline company doing business in Minnesota shall annually file with
the commissioner on or before March 31 a report under oath setting forth the information
prescribed by the commissioner to enable the commissioner to make valuations,
recommended valuations, and equalization required under sections 273.33, 273.35, 273.36,
273.37, and 273.3711. The commissioner shall prescribe the content, format, and manner
of the report pursuant to section 270C.30, except new text begin that for cooperative associations defined
in section 273.40, the information provided in the report must be aggregated to the unique
taxing jurisdiction level and exclude information related to property subject to the in-lieu
tax under section 273.41, and new text end that a "law administered by the commissioner" includes the
property tax laws. If all the required information is not available on March 31, the company
shall file the information that is available on or before March 31, and the balance of the
information as soon as it becomes available. If a report is made by electronic means, the
taxpayer's signature is defined pursuant to section 270C.304, except that a "law administered
by the commissioner" includes the property tax lawsnew text begin . For purposes of this subdivision,
"unique taxing jurisdiction" means the geographic area subject to the same set of local tax
ratesnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2020
and thereafter.
new text end
Sec. 19.
Minnesota Statutes 2018, section 273.3711, is amended to read:
273.3711 RECOMMENDED AND ORDERED VALUES.
For purposes of sections 273.33, 273.35, 273.36, 273.37, 273.371, and 273.372, all
new text begin preliminary new text end values not required to be listed and assessed by the commissioner of revenue
are recommended values. If the commissioner provides new text begin preliminary new text end recommended values,
the values must be certified to the auditor of each county in which the property is located
on or before deleted text begin August 1deleted text end new text begin June 15new text end . If the commissioner determines that the certified
recommended value is in error the commissioner may issue a corrected certification on or
before October 1. The commissioner may correct errors that are merely clerical in nature
until December 31.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2019
and thereafter.
new text end
Sec. 20.
Minnesota Statutes 2018, section 273.372, subdivision 3, is amended to read:
Subd. 3.
Notice.
Upon filing of any appeal deleted text begin in courtdeleted text end new text begin under this sectionnew text end by a utility company
or railroad against the commissioner pursuant to this section, the commissioner shall give
notice by first class mail to the county auditor of each county where property included in
the petition is located.
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.
new text begin
[273.3722] NOTIFICATION.
new text end
new text begin
The commissioner of revenue shall develop an electronic means to inform each city,
county, and taxing jurisdiction where property included in an appeal filed under section
273.372 is located. The notification must contain the following information:
new text end
new text begin
(1) notice that an appeal was filed pursuant to section 273.372;
new text end
new text begin
(2) a copy of the petition filed under section 273.372, subdivision 2, or of the appeal
filed under section 273.372, subdivision 4;
new text end
new text begin
(3) notice that a final, written agreement was entered into pursuant to section 273.372,
subdivision 5, and a copy of the agreement within ten days of its signing; and
new text end
new text begin
(4) any additional information, as available, that provides the city, county, and taxing
jurisdictions with information relative to the status of the appeal and settlement negotiations.
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. 22.
Minnesota Statutes 2018, section 275.025, subdivision 1, is amended to read:
Subdivision 1.
Levy amount.
The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy for commercial-industrial property is deleted text begin $784,590,000deleted text end
new text begin $737,090,000 new text end for taxes payable in deleted text begin 2018deleted text end new text begin 2020 new text end and thereafter. The state general levy for
seasonal-recreational property is deleted text begin $44,190,000deleted text end new text begin $41,690,000 new text end for taxes payable in deleted text begin 2018deleted text end new text begin 2020
new text end and thereafter. The tax under this section is not treated as a local tax rate under section
469.177 and is not the levy of a governmental unit under chapters 276A and 473F.
The commissioner shall increase or decrease the preliminary or final rate for a year as
necessary to account for errors and tax base changes that affected a preliminary or final rate
for either of the two preceding years. Adjustments are allowed to the extent that the necessary
information is available to the commissioner at the time the rates for a year must be certified,
and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported 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 EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2020.
new text end
Sec. 23.
Minnesota Statutes 2018, section 275.025, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Natural gas pipeline. new text end
new text begin
(a) The county must abate the state general levy on
personal property that is part of an intrastate natural gas transportation or distribution pipeline
system if:
new text end
new text begin
(1) construction of the pipeline system commenced after January 1, 2018; and
new text end
new text begin
(2) the pipeline system provides service to an area:
new text end
new text begin
(i) outside the seven-county metropolitan area, as defined in section 473.121, subdivision
4; and
new text end
new text begin
(ii) in which more than half of the households or businesses lacked access to natural gas
distribution systems as of January 1, 2018.
new text end
new text begin
(b) In the first year that a taxpayer seeks an abatement under this subdivision, the taxpayer
must file an application with the commissioner of revenue by March 1 of the assessment
year on a form prescribed by the commissioner.
new text end
new text begin
(c) The commissioner of revenue must notify any affected county in the first year that
a pipeline system becomes eligible for an abatement under this subdivision.
new text end
new text begin
(d) The abatement under this subdivision applies for a period not to exceed 12 taxable
years, provided that once a property no longer qualifies, it may not subsequently qualify
for an abatement under this subdivision.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2021.
new text end
Sec. 24.
Minnesota Statutes 2018, section 275.066, is amended to read:
275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
For the purposes of property taxation and property tax state aids, the term "special taxing
districts" includes the following entities:
(1) watershed districts under chapter 103D;
(2) sanitary districts under sections 442A.01 to 442A.29;
(3) regional sanitary sewer districts under sections 115.61 to 115.67;
(4) regional public library districts under section 134.201;
(5) park districts under chapter 398;
(6) regional railroad authorities under chapter 398A;
(7) hospital districts under sections 447.31 to 447.38;
(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
(10) regional development commissions under sections 462.381 to 462.398;
(11) housing and redevelopment authorities under sections 469.001 to 469.047;
(12) port authorities under sections 469.048 to 469.068;
(13) economic development authorities under sections 469.090 to 469.1081;
(14) Metropolitan Council under sections 473.123 to 473.549;
(15) Metropolitan Airports Commission under sections 473.601 to 473.679;
(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter
437, section 1;
(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections
1 to 6;
(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5,
section 39;
(21) Middle Mississippi River Watershed Management Organization under sections
103B.211 and 103B.241;
(22) emergency medical services special taxing districts under section 144F.01;
(23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251;
(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
under Laws 2003, First Special Session chapter 21, article 4, section 12;
(25) an airport authority created under section 360.0426; deleted text begin and
deleted text end
(26) new text begin fire protection special taxing districts under section 299O.01; and
new text end
new text begin (27) new text end any other political subdivision of the state of Minnesota, excluding counties, school
districts, cities, and towns, that has the power to adopt and certify a property tax levy to the
county auditor, as determined by the commissioner of revenue.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 25.
Minnesota Statutes 2018, section 276.131, is amended to read:
276.131 DISTRIBUTION OF PENALTIES, INTEREST, AND COSTS.
new text begin Subdivision 1. new text end
new text begin Distribution. new text end
new text begin Except as provided in subdivision 2, new text end the penalties, interest,
and costs collected on special assessments and real and personal property taxes must be
distributed as follows:
(1) all penalties and interest collected on special assessments against real or personal
property must be distributed to the taxing jurisdiction that levied the assessment;
(2) 50 percent of all penalties collected on real and personal property taxes must be
distributed to the school districts within the county, and the remaining 50 percent must be
distributed to the county;
(3) in the case of interest on taxes that have been delinquent for a period of one year or
less, (a) 50 percent of the interest must be distributed to the school districts within the county
and (b) the remaining 50 percent shall be distributed to the county;
(4) in the case of interest on taxes that have been delinquent for a period of more than
one year, (a) 50 percent of the interest must be distributed to the school districts within the
county and (b) the remaining 50 percent must be distributed as follows: (i) the city or town
where the property is located shall receive a share of the amount of interest equal to the
proportion that the city's or town's local tax rate for the year that the interest was collected,
is to the sum of the city's or town's local tax rate and the county's local tax rate for the year
that the interest was collected and (ii) the balance must be distributed to the county; and
(5) all costs collected by the county on special assessments and on delinquent real and
personal property taxes must be distributed to the county in which the property is located.
new text begin Subd. 2. new text end
new text begin Distribution of certain production taxes. new text end
new text begin
The penalties, interest, and costs
collected on taxes imposed under sections 272.029 and 272.0295 must be distributed to the
same local taxing jurisdictions and in the same percentages as provided for the revenues of
the original taxes imposed under sections 272.029 and 272.0295.
new text end
new text begin Subd. 3. new text end
new text begin Distribution to school district. new text end
The distribution of all penalties and interest
to the school district must be in accordance with the provisions of section 127A.34.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for penalties, interest, and costs collected
on taxes payable in 2020 and thereafter.
new text end
Sec. 26.
Minnesota Statutes 2018, section 282.01, subdivision 6, is amended to read:
Subd. 6.
Duties of commissioner after sale.
new text begin (a) new text end When any sale has been made by the
county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to the
commissioner of revenue such information relating to such sale, on such forms as the
commissioner of revenue may prescribe as will enable the commissioner of revenue to
prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale is
on terms; and not later than October 31 of each year the county auditor shall submit to the
commissioner of revenue a statement of all instances wherein any payment of principal,
interest, or current taxes on lands held under certificate, due or to be paid during the preceding
calendar years, are still outstanding at the time such certificate is made. When such statement
shows that a purchaser or the purchaser's assignee is in default, the commissioner of revenue
may instruct the county board of the county in which the land is located to cancel said
certificate of sale in the manner provided by subdivision 5, provided that upon
recommendation of the county board, and where the circumstances are such that the
commissioner of revenue after investigation is satisfied that the purchaser has made every
effort reasonable to make payment of both the annual installment and said taxes, and that
there has been no willful neglect on the part of the purchaser in meeting these obligations,
then the commissioner of revenue may extend the time for the payment for such period as
the commissioner may deem warranted, not to exceed one year. On payment in full of the
purchase price, appropriate conveyance in fee, in such form as may be prescribed by the
attorney general, shall be issued by the commissioner of revenue, which conveyance must
be recorded by the county and shall have the force and effect of a patent from the state
subject to easements and restrictions of record at the date of the tax judgment sale, including,
but without limitation, permits for telephone and electric power lines either by underground
cable or conduit or otherwise, sewer and water lines, highways, railroads, and pipe lines for
gas, liquids, or solids in suspension.
new text begin
(b) The commissioner of revenue shall issue an appropriate conveyance in fee (1) upon
the approval from the county auditor, or (2) when approval from the county auditor is given
based upon written confirmation from a licensed closing agent, title insurer, or title insurance
agent as specified in section 82.641. For purposes of this paragraph, "written confirmation"
means a written commitment or approval that the funding for the conveyance is held in an
escrow account available for disbursement upon delivery of a conveyance. The county
recorder or registrar of titles must not record or file a conveyance issued under this paragraph
unless the conveyance contains a certification signed by the county auditor where the land
is located that the recorder or registrar of titles can accept the conveyance for recording or
filing. The conveyance issued by the commissioner of revenue shall not be effective as a
conveyance until it is recorded. The conveyance shall be issued to the county auditor where
the land is located. Upon receipt of the conveyance, the county auditor shall hold the
conveyance until the conveyance is requested from a licensed closing agent, title insurer,
or title insurance agent to settle and close on the conveyance. If a request for the conveyance
is not made within 30 days of the date the conveyance is issued by the commissioner of
revenue, the county auditor shall return the conveyance to the commissioner. If the
conveyance is delivered to the licensed closing agent, title insurer, or title insurance agent
and the closing does not occur within ten days of the request, the licensed closing agent,
title insurer, or title insurance agent shall immediately return the conveyance to the county
auditor and, upon receipt, the county auditor shall return the conveyance to the commissioner
of revenue. The commissioner of revenue shall cancel and destroy all conveyances returned
by the county auditor pursuant to this subdivision. The licensed closing agent, title insurer,
or title insurance agent must promptly record the conveyance after the closing and must
deliver an attested or certified copy to the county auditor and to the grantee or grantees
named on the conveyance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for conveyances issued by the
commissioner of revenue after December 31, 2019.
new text end
Sec. 27.
Minnesota Statutes 2018, section 290A.03, subdivision 13, is amended to read:
Subd. 13.
Property taxes payable.
"Property taxes payable" means the property tax
exclusive of special assessments, penalties, and interest payable on a claimant's homestead
after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
and any other state paid property tax credits in any calendar year, and after any refund
claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the
year that the property tax is payable. In the case of a claimant who makes ground lease
payments, "property taxes payable" includes the amount of the payments directly attributable
to the property taxes assessed against the parcel on which the house is located. Regardless
of the limitations in section 280A(c)(5) of the Internal Revenue Code, "property taxes
payable" must be apportioned or reduced for the use of a portion of the claimant's homestead
for a business purpose if the claimant deducts any business depreciation expenses for the
use of a portion of the homestead or deducts expenses under section 280A of the Internal
Revenue Code for a business operated in the claimant's homestead. For homesteads which
are manufactured homes as defined in section 273.125, subdivision 8, deleted text begin and for homesteads
which aredeleted text end new text begin including manufactured homes located in a manufactured home community owned
by a cooperative organized under chapter 308A or 308B, andnew text end park trailers taxed as
manufactured homes under section 168.012, subdivision 9, "property taxes payable" shall
also include 17 percent of the gross rent paid in the preceding year for the site on which the
homestead is located. When a homestead is owned by two or more persons as joint tenants
or tenants in common, such tenants shall determine between them which tenant may claim
the property taxes payable on the homestead. If they are unable to agree, the matter shall
be referred to the commissioner of revenue whose decision shall be final. Property taxes
are considered payable in the year prescribed by law for payment of the taxes.
In the case of a claim relating to "property taxes payable," the claimant must have owned
and occupied the homestead on January 2 of the year in which the tax is payable and (i) the
property must have been classified as homestead property pursuant to section 273.124, on
or before December 15 of the assessment year to which the "property taxes payable" relate;
or (ii) the claimant must provide documentation from the local assessor that application for
homestead classification has been made on or before December 15 of the year in which the
"property taxes payable" were payable and that the assessor has approved the application.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with claims for taxes payable
in 2020.
new text end
Sec. 28.
new text begin
[299O.01] FIRE PROTECTION SPECIAL TAXING DISTRICTS.
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 unless the context clearly requires otherwise.
new text end
new text begin
(b) "City" means a statutory or home rule charter city.
new text end
new text begin
(c) "Governing body" means for a city, its city council; for a county, its county board;
and for a town, the board of supervisors.
new text end
new text begin
(d) "Political subdivision" means a county, a city, or a township organized to provide
town government.
new text end
new text begin Subd. 2. new text end
new text begin Authority to establish. new text end
new text begin
(a) Two or more political subdivisions may establish,
by resolution of their governing bodies, a special taxing district to provide fire protection
or emergency medical services, or both, in the area of the district, comprising the jurisdiction
of each of the political subdivisions forming the district. For a county that participates in
establishing a district, the county's jurisdiction comprises the unorganized territory of the
county that it designates in its resolution for inclusion in the district. The area of the special
taxing district does not need to be contiguous or its boundaries continuous.
new text end
new text begin
(b) Before establishing a district under this section, the participating political subdivisions
must enter into an agreement that specifies how any liabilities, other than debt issued under
subdivision 6, and assets of the district will be distributed if the district is dissolved. The
agreement may also include other terms, including a method for apportioning the levy of
the district among participating political subdivisions under subdivision 4, paragraph (b),
as the political subdivisions determine appropriate. The agreement must be adopted no later
than upon passage of the resolution establishing the district under paragraph (a), but may
be later amended by agreement of each of the political subdivisions participating in the
district.
new text end
new text begin Subd. 3. new text end
new text begin Board. new text end
new text begin
The special taxing district established under this section is governed
by a board made up initially of representatives of each participating political subdivision
in the proportions set out in the establishing resolution, subject to change as provided in the
district's charter, if any, or in the district's bylaws. Each participating political subdivision's
representative must be an elected member of the governing body of the political subdivision
and serves at the pleasure of that participant's governing body.
new text end
new text begin Subd. 4. new text end
new text begin Property tax levy. new text end
new text begin
(a) The board may levy a tax on the taxable real and personal
property in the district. The tax levy may not exceed 0.096 percent of the estimated market
value of the district, or $1,100,000, whichever is less. The proceeds of the levy must be
used as provided in subdivision 5. The board shall certify the levy at the times provided
under section 275.07. The board shall provide the county with information as necessary to
identify the property that is located within the district. If the boundaries include a part of a
parcel, the entire parcel is included in the district. The county auditors must spread, collect,
and distribute the proceeds of the tax at the same time and in the same manner as provided
by law for all other property taxes.
new text end
new text begin
(b) As an alternative to paragraph (a), the board may apportion its levy among the political
subdivisions that are members of the district under a formula or method, such as population,
number of service calls, cost of providing service, the market value of improvements, or
other measure or measures, that was approved by the governing body of each of the political
subdivisions that is a member of the district. The amount of the levy allocated to each
political subdivision must be added to that political subdivision's levy and spread at the
same time and in the same manner as provided by law for other taxes. The proceeds of the
levy must be collected and remitted to the district and used as provided in subdivision 5.
new text end
new text begin Subd. 5. new text end
new text begin Use of levy proceeds. new text end
new text begin
The proceeds of property taxes levied under this section
must be used to provide fire protection or emergency medical services to residents of the
district and property located in the district, as well as to pay debt issued under subdivision
6. Services may be provided by employees of the district or by contracting for services
provided by other governmental or private entities.
new text end
new text begin Subd. 6. new text end
new text begin Debt. new text end
new text begin
(a) The district may incur debt under chapter 475 when the board
determines doing so is necessary to accomplish its duties.
new text end
new text begin
(b) In addition, the board of the district may issue certificates of indebtedness or capital
notes under section 412.301 to purchase capital equipment. In applying section 412.301,
paragraph (e), to the district the following rules apply:
new text end
new text begin
(1) the taxable property of the entire district must be used to calculate the percent of
estimated market value; and
new text end
new text begin
(2) "the number of voters at the last municipal election" means the sum of the number
of voters at the last municipal election for each of the cities that is a member of the district
plus the number of registered voters in each town that is a participating member of the
district.
new text end
new text begin Subd. 7. new text end
new text begin Powers. new text end
new text begin
(a) In addition to authority expressly granted in this section, a special
taxing district may exercise any power that may be exercised by any of its participating
political subdivisions and that is necessary or reasonable to support the services set out in
subdivision 5. The district may only levy the taxes authorized in subdivision 4. These powers
include, without limitation, the authority to participate in state programs and to enforce or
carry out state laws related to fire protection or emergency medical services, including
programs providing state aid, reimbursement or funding of employee benefits, authorizing
local enforcement of state standards, and similar. These include but are not limited to fire
protection related programs and political subdivision powers or responsibilities under
chapters 299A and 424A; sections 6.495, 69.011, and 353.64; and any administrative rules
related to the fire code.
new text end
new text begin
(b) To the extent that the district's authority under this subdivision overlaps with or may
conflict with the authority of the participating political subdivision, the agreement under
subdivision 2, paragraph (b), must provide for allocation of those powers or responsibilities
between the participating political subdivisions and the district and may provide for resolution
of conflicts in the exercise of those powers.
new text end
new text begin Subd. 8. new text end
new text begin Additions and withdrawals. new text end
new text begin
(a) Additional eligible political subdivisions may
be added to a special taxing district under this section as provided by the board of the district
and agreed to in a resolution of the governing body of the political subdivision proposed to
be added.
new text end
new text begin
(b) A political subdivision may withdraw from a special taxing district under this section
by resolution of its governing body. The political subdivision must notify the board of the
special taxing district of the withdrawal by providing a copy of the resolution at least two
years in advance of the proposed withdrawal. The taxable property of the withdrawing
member is subject to the property tax levy under subdivision 4 for the two taxes payable
years following the notice of the withdrawal, unless the board and the withdrawing member
agree otherwise by a resolution adopted by each of their governing bodies. If a political
subdivision withdraws from a district for which debt was issued under subdivision 6 when
the political subdivision was a participating member of the district and which is outstanding
when the political subdivision withdraws from the district, the taxable property of the
withdrawing political subdivision remains subject to the special taxing district debt levy
until that outstanding debt has been paid or defeased. If the district's property levy to repay
the debt was apportioned among the political subdivisions under an alternative formula or
method under subdivision 4, paragraph (b), the withdrawing political subdivision is subject
to the same percentage of the debt levy as applied in the taxes payable year immediately
before its withdrawal from the district.
new text end
new text begin
(c) Notwithstanding subdivision 2, a special taxing district comprised of two political
subdivisions continues to exist even if one of the political subdivisions withdraws.
new text end
new text begin Subd. 9. new text end
new text begin Dissolution. new text end
new text begin
The special taxing district may be dissolved by resolution approved
by majority vote of the board. If the special taxing district is dissolved, the assets and
liabilities may be assigned to a successor entity, if any, or otherwise disposed of for public
purposes as provided in the agreement adopted under subdivision 2, paragraph (b), or
otherwise agreed to by the participating political subdivisions. A district may not be dissolved
until all debt issued under subdivision 6 has been paid or defeased.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
(a) Subdivisions 1 to 3, and 5 to 9, are effective the day following
final enactment.
new text end
new text begin
(b) Subdivision 4 shall be effective beginning with property taxes payable in 2020 and
thereafter.
new text end
Sec. 29.
Minnesota Statutes 2018, section 473H.08, subdivision 1, is amended to read:
Subdivision 1.
Till expiration started.
Agricultural preserves shall continue until deleted text begin either
deleted text end the landowner deleted text begin ordeleted text end new text begin ,new text end the authoritynew text begin , or a state agency or governmental unitnew text end initiates expiration
as provided in this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to any agricultural preserve where the previously required eight-year termination
period under Minnesota Statutes, section 473H.08, has not yet expired.
new text end
Sec. 30.
Minnesota Statutes 2018, section 473H.08, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Expiration for park and trail purposes. new text end
new text begin
(a) An agricultural preserve expires
immediately when a state agency or other governmental unit purchases the property or
obtains an easement over the property for the purpose of creating or expanding a public
trail or public park. This subdivision applies only to the portion of the agricultural preserve
acquired for trail or park purposes, and any portion of the property not acquired for trail or
park purposes shall remain an agricultural preserve, even if the total acreage is reduced
below 40 acres.
new text end
new text begin
(b) The acquiring state agency or governmental unit shall give notice to the authority as
provided in subdivision 4. The notice must specify the portion of the property being removed
from the agricultural preserve and the date on which that portion expires.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to any agricultural preserve where the previously required eight-year termination
period under Minnesota Statutes, section 473H.08, has not yet expired.
new text end
Sec. 31.
Minnesota Statutes 2018, section 473H.08, subdivision 4, is amended to read:
Subd. 4.
Notice to others.
Upon receipt of the notice provided in subdivision 2new text begin or 3anew text end ,
or upon notice served by the authority as provided in subdivision 3, the authority shall
forward the original notice to the county recorder for recording, or to the registrar of titles
if the land is registered, and shall notify the county auditor, county assessor, the Metropolitan
Council, and the county soil and water conservation district of the date of expiration.
Designation as an agricultural preserve and all benefits and limitations accruing through
sections 473H.02 to 473H.17 for the preserve shall cease on the date of expiration. The
restrictive covenant contained in the application shall terminate on the date of expiration.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to any agricultural preserve where the previously required eight-year termination
period under Minnesota Statutes, section 473H.08, has not yet expired.
new text end
Sec. 32.
Minnesota Statutes 2018, section 473H.09, is amended by adding a subdivision
to read:
new text begin Subd. 3. new text end
new text begin Approval of authority. new text end
new text begin
Termination of an agricultural preserve earlier than
the date derived through the application in section 473H.08 may be requested by the owner
eight years after commencement of the preserve. An owner seeking termination under this
subdivision must provide notice to the authority exercising planning and zoning authority
for the land on a form provided by the commissioner of agriculture. The notice must describe
the property for which termination is desired and the date of termination. Termination of
the agricultural preserve and covenant pursuant to this subdivision shall become effective
only upon approval by a majority vote of the authority.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, and
applies to any agricultural preserve where the previously required eight-year termination
period under Minnesota Statutes, section 473H.08, has not expired.
new text end
Sec. 33.
Laws 2008, chapter 366, article 5, section 33, the effective date, as amended by
Laws 2013, chapter 143, article 4, section 35, is amended to read:
EFFECTIVE DATE.
This section is effective for taxes levied in 2008, payable in 2009,
and is repealed effective for taxes levied in deleted text begin 2018deleted text end new text begin 2023new text end , payable in deleted text begin 2019deleted text end new text begin 2024new text end , and thereafter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2019.
new text end
Sec. 34.
Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by Laws
2013, chapter 143, article 4, section 36, is amended to read:
Subdivision 1.
Agreement.
The city of Cloquet and Perch Lake Township, by resolution
of each of their governing bodies, may establish the Cloquet Area Fire and Ambulance
new text begin Special new text end Taxing District for the purpose of providing fire or ambulance services, or both,
throughout the district. In this section, "municipality" means home rule charter and statutory
cities, towns, and Indian tribes. The district may exercise all the powers relating to fire and
ambulance services of the municipalities that receive fire or ambulance services, or both,
from the district. Upon application, any other municipality may join the district with the
agreement of the municipalities that comprise the district at the time of its application to
join.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
new text end
Sec. 35.
Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:
Subd. 2.
Board.
The Cloquet Area Fire and Ambulance new text begin Special new text end Taxing District Board
is governed by a board made up initially of one or more elected officials of the governing
body of each participating municipality in the proportions set out in the establishing
resolution, subject to change as provided in the district's charter, if any, or in the district's
bylaws. Each municipality's representatives serve at the pleasure of that municipality's
governing body.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
new text end
Sec. 36.
Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by Laws
2013, chapter 143, article 4, section 37, is amended to read:
Subd. 3.
Tax.
The district board may impose a property tax on taxable property as
provided in this subdivisionnew text begin to pay the costs of providing fire or ambulance services, or
both, throughout the districtnew text end . The board shall annually determine the total amount of the
levy that is attributable to the cost of providing fire services and the cost of providing
ambulance services within the primary service area. For those municipalities that only
receive ambulance services, the costs for the provision of ambulance services shall be levied
against taxable property within those municipalities at a rate necessary not to exceed 0.019
percent of the estimated market value. For those municipalities that receive both fire and
ambulance services, the tax shall be imposed at a rate that does not exceed 0.2835 percent
of estimated market value.
When a member municipality opts to receive fire service from the district or an additional
municipality becomes a member of the district, the cost of providing fire services to that
community shall be determined by the board and added to the maximum levy amount.
Each county auditor of a county that contains a municipality subject to the tax under
this section must collect the tax and pay it to the Fire and Ambulance Special Taxing District.
The district may also impose other fees or charges as allowed by law for the provision of
fire and ambulance services.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
new text end
Sec. 37.
Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:
Subd. 4.
Public indebtedness.
The district may incur debt in the manner provided for
new text begin in Minnesota Statutes, chapter 475, and the district is new text end a municipality deleted text begin by Minnesota Statutes,
chapter 475, when necessary to accomplish its duties.deleted text end new text begin , as defined in Minnesota Statutes,
sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph (c), and may issue
certificates of indebtedness or capital notes as provided for a city under Minnesota Statutes,
section 412.301, when necessary to accomplish its duties. Any tax levied to pay debt of the
district must be levied in the amounts required and in accordance with Minnesota Statutes,
section 475.61. The debt service for debt, the proceeds of which financed capital costs for
ambulance service, must be levied against taxable property within those municipalities in
the primary service area. The debt service for debt, the proceeds of which financed capital
costs for fire service, must be levied against taxable property within those municipalities
receiving fire services.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
new text end
Sec. 38.
Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:
Subd. 5.
Withdrawal.
Notice of intent to withdraw from participation in the district
may be given only in the month of January, with a minimum of twelve months notice of
intent to withdraw. Withdrawal becomes effective for taxes levied new text begin under subdivision 3 new text end in
the year when the notice is given. new text begin A property tax levied by the district on taxable property
located in a withdrawing municipality to make debt service payments for obligations issued
by the district under subdivision 4 remains in effect until the obligations outstanding on the
date of withdrawal are satisfied, including any property tax levied in connection with a
refunding of the obligations. new text end The district and its members may develop and agree upon
new text begin other new text end continuing obligations after withdrawal of a municipality.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
new text end
Sec. 39.
Laws 2017, First Special Session chapter 1, article 10, section 4, the effective
date, is amended to read:
EFFECTIVE DATE; APPLICATION.
This section is effective for applications new text begin and
certifications new text end made in 2018 and thereafter, except the repeal of the exclusion of land under
item (iii) is effective retroactively for payments due under Minnesota Statutes, section
290C.08, beginning for payments due to be made in 2014. In order to qualify for retroactive
payments, the following requirements must be met: (1) the owner of land exceeding 60,000
acres that is subject to a single conservation easement funded under Minnesota Statutes,
section 97A.056 or a comparable permanent easement conveyed to a governmental or
nonprofit entity, must submit an application to the commissioner of revenue, in a form and
manner and at a time acceptable to the commissioner, establishing that the affected property
and its use met the requirement of Minnesota Statutes, chapter 290C, as amended by this
section; (2) the owner and each county in which the land is located must certify to the
commissioner that no petitions challenging the market value of the property are pending
under Minnesota Statutes, chapter 278; and (3) the requirements of clauses (1) and (2) must
be satisfied by October 1, 2017. No interest accrues on payment under this section for
periods before November 1, 2017.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for certifications made in
2018 and thereafter.
new text end
Sec. 40. new text begin PLACEMENT OF LAND INTO FEDERAL TRUST; REPORT.
new text end
new text begin Subdivision 1. new text end
new text begin County certification. new text end
new text begin
By October 1, 2019, each county must certify to
the commissioner of revenue the following:
new text end
new text begin
(1) the parcel identification number, property classification, and parcel size for each
parcel of property in the county that was placed into trust by the United States Department
of the Interior Bureau of Indian Affairs between January 1, 2009, and January 1, 2019;
new text end
new text begin
(2) the amount of property tax paid on each parcel to each taxing jurisdiction in the
county in the year prior to the parcel being placed into trust;
new text end
new text begin
(3) the total percentage of land in the county placed into trust as of October 1, 2019; and
new text end
new text begin
(4) the parcel identification number, property classification, parcel size, and the amount
of property tax paid to each taxing jurisdiction for the most recent taxes payable year for
each parcel in the county for which an application for placement into trust was filed between
January 1, 2019, and July 1, 2019.
new text end
new text begin Subd. 2. new text end
new text begin Verification. new text end
new text begin
The commissioner of revenue may request additional information
from each county that the commissioner deems necessary to verify the certifications as
reported by each county pursuant to subdivision 1.
new text end
new text begin Subd. 3. new text end
new text begin Report. new text end
new text begin
By February 15, 2020, the commissioner of revenue must issue a report
and provide a copy of the report to the chairs and ranking minority members of the legislative
committees with jurisdiction over taxes. The report must include the following:
new text end
new text begin
(1) a listing, by each county, of each parcel of property in the county that was placed
into trust by the United States Department of the Interior Bureau of Indian Affairs between
January 1, 2009, and January 1, 2019, including the parcel's identification number, property
classification, and total parcel size;
new text end
new text begin
(2) the amount of property tax paid on each parcel to each taxing jurisdiction in the
county in the year prior to the parcel being placed into trust;
new text end
new text begin
(3) the total percentage of land in each county placed into trust as of October 1, 2019,
and the total percentage of land placed into trust statewide as of October 1, 2019; and
new text end
new text begin
(4) a listing, by each county, of each parcel, including its identification number, property
classification, parcel size, and the amount of property tax paid for the most recent taxes
payable year for which an application for placement into trust was filed between January
1, 2019, and July 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
ARTICLE 5
AIDS AND CREDITS
Section 1.
Minnesota Statutes 2018, section 126C.17, subdivision 6, is amended to read:
Subd. 6.
Referendum equalization levy.
(a) A district's referendum equalization levy
equals the sum of the first tier referendum equalization levy, the second tier referendum
equalization levy, and the third tier referendum equalization levy.
(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to deleted text begin $880,000deleted text end new text begin $900,000new text end .
(c) A district's second tier referendum equalization levy equals the district's second tier
referendum equalization revenue times the lesser of new text begin (1) new text end one deleted text begin ordeleted text end new text begin , (2)new text end the ratio of the district's
referendum market value per resident pupil unit to deleted text begin $510,000deleted text end new text begin $550,000, or (3) the ratio of
the district's referendum market value per adjusted pupil unit to $550,000new text end .
(d) A district's third tier referendum equalization levy equals the district's third tier
referendum equalization revenue times the lesser of new text begin (1) new text end one deleted text begin ordeleted text end new text begin , (2)new text end the ratio of the district's
referendum market value per resident pupil unit to deleted text begin $290,000deleted text end new text begin $440,000, or (3) the ratio of
the district's referendum market value per adjusted pupil unit to $440,000new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue in fiscal year 2021 and later.
new text end
Sec. 2.
Minnesota Statutes 2018, section 290A.03, subdivision 3, is amended to read:
Subd. 3.
Income.
(a) "Income" means the sum of the following:
(1) federal adjusted gross income as defined in the Internal Revenue Code; and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;
(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;
(xiii) deleted text begin nontaxable scholarship or fellowship grants;
deleted text end
deleted text begin (xiv)deleted text end the amount of deduction allowed under section 199 of the Internal Revenue Code;
deleted text begin (xv)deleted text end new text begin (xiv) new text end the amount of deduction allowed under section 220 or 223 of the Internal
Revenue Code;
deleted text begin (xvi)deleted text end new text begin (xv)new text end the amount deducted for tuition expenses under section 222 of the Internal
Revenue Code; and
deleted text begin (xvii)deleted text end new text begin (xvi)new text end the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.
(b) "Income" does not include:
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;
(4) surplus food or other relief in kind supplied by a governmental agency;
(5) relief granted under this chapter;
(6) child support payments received under a temporary or final decree of dissolution or
legal separation; deleted text begin or
deleted text end
(7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16new text begin ; or
new text end
new text begin (8) nontaxable scholarship or fellowship grants, or the cash value of any tuition discount
provided by a postsecondary education institutionnew text end .
(c) The sum of the following amounts may be subtracted from income:
(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(5) for the claimant's fifth dependent, the exemption amount; and
(6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or
before December 31 of the year for which the taxes were levied or rent paid, the exemption
amount.
(d) For purposes of this subdivision, the "exemption amount" means the exemption
amount under section 151(d) of the Internal Revenue Code for the taxable year for which
the income is reported; "retirement base amount" means the deductible amount for the
taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue
Code, adjusted for inflation as provided in section 219(b)(5)(C) of the Internal Revenue
Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional
or Roth style retirement account or plan" means retirement plans under sections 401, 403,
408, 408A, and 457 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with refunds based on property
taxes payable in 2020 and rent paid in 2019.
new text end
Sec. 3.
Minnesota Statutes 2018, section 469.169, is amended by adding a subdivision to
read:
new text begin Subd. 21. new text end
new text begin Additional border city allocations. new text end
new text begin
(a) In addition to the tax reductions
authorized in subdivisions 12 to 20, the commissioner shall allocate $2,000,000 for tax
reductions to border city enterprise zones in cities located on the western border of the state.
The commissioner shall allocate this amount among cities on a per capita basis. Allocations
under this subdivision may be used for tax reductions under sections 469.171, 469.1732,
and 469.1734, or for other offsets of taxes imposed on or remitted by businesses located in
the enterprise zone, but only if the municipality determines that the granting of the tax
reduction or offset is necessary to retain a business within or attract a business to the zone.
new text end
new text begin
(b) The allocations under this subdivision do not cancel or expire, but remain available
until used by the city.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 4.
Minnesota Statutes 2018, section 477A.0126, subdivision 6, is amended to read:
Subd. 6.
Indian Child Welfare Act compliance system review.
(a) By January 1, 2018,
the commissioner of human services, in consultation with counties and tribes, shall develop
a system to review county compliance with the Indian Child Welfare Act and the Minnesota
Indian Family Preservation Act. The system may include, but is not limited to, the cases to
be reviewed, the criteria to be reviewed to demonstrate compliance, the rate of noncompliance
and the coordinating penalty, the program improvement plan, and training.
(b) The commissioner of human services shall provide continuous review of cases
reported by counties for aid payments under this section for compliance with the Indian
Child Welfare Act and the Minnesota Indian Family Preservation Act.
(c) The new text begin commissioner of human services must initiate a contested case proceeding under
chapter 14 if a county notifies the commissioner that the county disputes the new text end determination
made by the commissioner of human services regarding a county's compliance or
noncompliance with the Indian Child Welfare Act and the Minnesota Indian Family
Preservation Act deleted text begin shall be finaldeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in calendar
year 2020 and thereafter.
new text end
Sec. 5.
Minnesota Statutes 2018, section 477A.0126, subdivision 7, is amended to read:
Subd. 7.
Appropriation.
(a) deleted text begin $5,000,000deleted text end new text begin $7,000,000 new text end is annually appropriated to the
commissioner of revenue from the general fund to pay aid under this section.
(b) $390,000 is appropriated annually from the general fund to the commissioner of
human services to implement subdivision 6.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in calendar
year 2020 and thereafter.
new text end
Sec. 6. new text begin LOCAL GOVERNMENT GRANTS.
new text end
new text begin
$1,255,000 in fiscal year 2020 only is appropriated from the general fund to the
commissioner of revenue for grants that shall be paid by August 1, 2019, and allocated as
follows:
new text end
new text begin
(1) $750,000 to Mahnomen County. Of this amount, $250,000 must be used by the
county for the Mahnomen Health Center, and $250,000 must be paid from the county to
the White Earth Band of Ojibwe to reimburse the band for costs of delivering child welfare
services;
new text end
new text begin
(2) $500,000 to Otter Tail County to be used by the county for debt service on a building
located in the city of Fergus Falls and formerly leased by the state to provide residential
treatment services; and
new text end
new text begin
(3) $2,600 to the city of Mazeppa and $2,400 to Wabasha County, to be used by the city
and county for property tax abatements and other costs incurred by public and private entities
as a result of a fire in the city of Mazeppa on March 11, 2018.
new text end
new text begin
The appropriations under this section are onetime and are not added to the base.
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 APPROPRIATION OF LAPSED AMOUNTS; FIRE REMEDIATION
GRANTS.
new text end
new text begin
(a) $643,729 in fiscal year 2020 is appropriated from the general fund to the commissioner
of public safety for grants to remediate the effects of fires in the city of Melrose on September
8, 2016. The grants shall be paid by August 1, 2019. This appropriation represents the
amounts that lapsed by the terms of the appropriation in Laws 2017, First Special Session
chapter 1, article 4, section 31.
new text end
new text begin
(b) A grant recipient must use the money appropriated under this section for remediation
costs, including disaster recovery, infrastructure, reimbursement for emergency personnel
costs, reimbursement for equipment costs, and reimbursements for property tax abatements,
incurred by public or private entities as a result of the fires. This is a onetime appropriation
and is available until June 30, 2021.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8. new text begin APPROPRIATION.
new text end
new text begin
For fiscal year 2021, $14,850,000 is appropriated from the general fund to the Department
of Education for referendum equalization aid under Minnesota Statutes, section 126C.17.
This amount is in addition to other appropriations for the same purpose.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 6
LOCAL SALES TAXES
Section 1.
Minnesota Statutes 2018, 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) if permitted
by special law, or (4) 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 vehiclesdeleted text begin or deleted text end new text begin . Beginning
July 1, 2019, no political subdivision may impose new text end a special excise tax on motor vehiclesnew text begin
under this sectionnew text end .
(d) A political subdivision may not advertise or expend funds for the promotion of a
referendum to support imposing a local deleted text begin optiondeleted text end sales taxdeleted text begin .
deleted text end
deleted text begin (e) Notwithstanding paragraph (d), a political subdivision may expend funds todeleted text end new text begin , and
may only spend funds related to imposing a local sales tax tonew text end :
(1) conduct the referendum;
(2) disseminate information included in the resolution adopted under subdivision 2new text begin , but
only if the disseminated information includes a list of specific projects and the expected
cost of each individual projectnew text end ;
(3) provide notice of, and conduct public forums at which proponents and opponents on
the merits of the referendum are given equal time to express their opinions on the merits of
the referendum;
(4) provide facts and data on the impact of the proposed new text begin local new text end sales tax on consumer
purchases; and
(5) provide facts and data related to deleted text begin the programs and projectsdeleted text end new text begin each individual project
new text end to be funded with the new text begin local new text end sales tax.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2018, section 297A.99, is amended by adding a subdivision to
read:
new text begin Subd. 1a. new text end
new text begin Requirements. new text end
new text begin
Local sales taxes may be used instead of traditional local
revenues only for construction and rehabilitation of capital projects when a clear regional
benefit beyond the taxing jurisdiction can be demonstrated. To impose a local sales tax, a
political subdivision must have a population of at least 1,000 as of the date the resolution
under subdivision 2 is adopted.
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 2018, section 297A.99, subdivision 2, is amended to read:
Subd. 2.
Local resolution before application for authority.
new text begin (a) new text end Before the governing
body of a political subdivision requests legislative approval deleted text begin ofdeleted text end new text begin to impose a local sales tax
authorized by new text end a special law deleted text begin for a local sales tax that is administered under this sectiondeleted text end , it
shall adopt a resolution indicating its approval of the tax. The resolution must includedeleted text begin , at a
minimum,deleted text end new text begin the following new text end information onnew text begin :
new text end
new text begin (1) new text end the proposed tax ratedeleted text begin , how the revenues will be used,deleted text end new text begin ;
new text end
new text begin
(2) a detailed description of no more than five capital projects that will be funded with
revenue from the tax;
new text end
new text begin
(3) documentation of the regional significance of each project, including the share of
the economic benefit to or use of each project by persons residing, or businesses located,
outside of the jurisdiction;
new text end
new text begin
(4) the amount of local sales tax revenue that would be used for each project and the
estimated time needed to raise that amount of revenue; and
new text end
new text begin (5)new text end the total revenue that will be raisednew text begin for all projectsnew text end before the tax expires, and the
estimated length of time that the tax will be in effectdeleted text begin . This subdivision applies to local laws
enacted after June 30, 1998deleted text end new text begin if all proposed projects are fundednew text end .
new text begin
(b) The jurisdiction seeking authority to impose a local sales tax by special law must
submit the resolution in paragraph (a) along with underlying documentation indicating how
the benefits under paragraph (a), clause (3), were determined, to the chairs and ranking
minority members of the legislative committees with jurisdiction over taxes no later than
January 31 of the year in which the jurisdiction is seeking a special law authorizing the tax.
new text end
new text begin
(c) The special legislation granting local sales tax authority is not required to allow
funding for all projects listed in the resolution with the revenue from the local sales tax, but
must not include any projects not contained in the resolution.
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 all local sales taxes not authorized by the legislature before July 1, 2019.
new text end
Sec. 4.
Minnesota Statutes 2018, section 297A.99, subdivision 3, is amended to read:
Subd. 3.
Requirements for adoption, use, termination.
(a) Imposition of a local sales
tax is subject to approval by voters of the political subdivision at a general election. The
election must be conducted new text begin no more than four years new text end before the governing body of the political
subdivision requests legislative approval of the tax.new text begin The question put to voters must include:
new text end
new text begin
(1) the specific project or projects to be funded with the local sales tax;
new text end
new text begin
(2) the amount of local sales tax revenue that would be used for each project and, if more
than one project is proposed, the total amount of revenue raised for all projects, and the
estimated length of time that tax will be imposed; and
new text end
new text begin
(3) the notice in boldface type: "BY VOTING YES ON THIS BALLOT QUESTION,
YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE."
new text end
(b) The proceeds of the tax must be dedicated exclusively to payment of the deleted text begin cost of adeleted text end
new text begin construction and rehabilitation costs and associated bonding costs related to the new text end specific
capital improvement deleted text begin which is designated at least 90 days before the referendum on imposition
of the tax is conducteddeleted text end new text begin projects approved by the voters under paragraph (a)new text end .
(c) The tax must terminate after deleted text begin the improvement designated under paragraph (b) has
been completeddeleted text end new text begin the revenues raised are sufficient to fund the projects approved by the voters
under paragraph (a)new text end .
(d) After a sales tax imposed by a political subdivision has expired or been terminated,
the political subdivision is prohibited from imposing a local sales tax for a period of one
year. deleted text begin Notwithstanding subdivision 13, this paragraph applies to all local sales taxes in effect
at the time of or imposed after May 26, 1999.
deleted text end
new text begin
(e) After a tax has terminated, any amount collected by the political subdivision that is
greater than the average quarterly revenues collected over the immediately preceding 12
calendar months must be remitted to the commissioner for deposit to the general fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
(a) The changes to paragraphs (a) to (d) are effective the day
following final enactment and apply to all local sales taxes not authorized by the legislature
before July 1, 2019.
new text end
new text begin
(b) The addition of paragraph (e) is effective the day following final enactment and
applies retroactively to all currently imposed local sales taxes.
new text end
Sec. 5.
Minnesota Statutes 2018, section 477A.016, is amended to read:
477A.016 NEW TAXES PROHIBITED.
new text begin (a) new text end No county, city, town or other taxing authority shall increase a present tax or impose
a new tax on sales or income.
new text begin
(b) No county, city, town, or other taxing authority shall increase a present excise tax
or fee or impose a new excise tax or fee on either:
new text end
new text begin
(1) the manufacture, distribution, wholesale, or retail sale of food, based on volume of
product sold, product sales value, or the type of product manufactured, distributed, or sold;
or
new text end
new text begin
(2) any container or instrument used for transporting, protecting, or consuming food.
new text end
new text begin
(c) For purposes of this section:
new text end
new text begin
(1) "food" has the meaning given in section 34A.01, subdivision 4; and
new text end
new text begin
(2) "container or instrument" means a bottle, cup, can, bag, drinking straw, or other
packaging that is made from plastic, aluminum, glass, paper, cardboard, or other material.
new text end
new text begin
(d) This section does not apply to reasonable license fees lawfully imposed by a county,
city, town, or other licensing authority in the exercise of its regulatory authority to license
a trade, profession, or business.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Laws 1980, chapter 511, section 1, subdivision 1, is amended to read:
Subdivision 1.
new text begin (a) new text end Minnesota Statutes, section deleted text begin 477A.01, Subdivision 18deleted text end new text begin 477A.016new text end , shall
not be deemed to prohibit the city of Duluth from amending its sales and use tax ordinances
so as to impose a sales deleted text begin ordeleted text end new text begin andnew text end use tax at the rate of one percent upon any or all sales or uses
which are taxed by the state of Minnesota pursuant to Minnesota Statutes, chapter 297A deleted text begin or
297Bdeleted text end .
new text begin
(b) Notwithstanding Minnesota Statutes, section 477A.016, or any ordinance, city charter,
or other provision of law, pursuant to the approval of the voters at the election on November
7, 2017, the city of Duluth may impose by ordinance an additional sales and use tax of
one-half of one percent for the purposes specified in paragraph (c). The provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the taxes authorized under this paragraph. The tax may not be imposed until
the city complies with the provisions of section 31.
new text end
new text begin
(c) Revenues received from the tax authorized by paragraph (b) must be used to pay all
or part of the capital and administrative costs of street, curb, gutter, sidewalk, and bridge
improvements including related lighting and signals in the city of Duluth as outlined in the
Duluth Street Improvement Program 2017, developed by the engineer of the city of Duluth
as designated August 8, 2017.
new text end
new text begin
(d) The city of Duluth, pursuant to the approval of the voters at the November 7, 2017,
referendum authorizing the imposition of the taxes in this section, may issue bonds under
Minnesota Statutes, chapter 475, to pay capital and administrative expenses for the projects
described in paragraph (c), until the tax terminates as provided in paragraph (e). A separate
election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin
(e) The tax authorized under this subdivision terminates at the earlier of: (1) 25 years
after the date of initial imposition of the tax; or (2) when the city council determines that
sufficient funds have been raised from the tax to finance the capital and administrative costs
of the improvements described in paragraph (c), plus the additional amount needed to pay
the costs related to issuance of bonds under paragraph (d), including interest bonds. Any
funds remaining after completion of the projects specified in paragraph (c) and retirement
or redemption of bonds in paragraph (d) shall be placed in the general fund of the city. The
tax imposed under paragraph (b) may expire at an earlier time if the city so determines by
ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 7.
Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session
chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3, is amended
to read:
Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.
The city may, by resolution, levy in addition to taxes authorized by other law:
(1) a sales tax of not more than three percent on the gross receipts on retail on-sales of
intoxicating liquor and fermented malt beverages when sold at licensed on-sale liquor
establishments located within the downtown taxing area, provided that this tax may not be
imposed if sales of intoxicating liquor and fermented malt beverages are exempt from
taxation under chapter 297A;
(2) a sales tax of not more than three percent on the gross receipts from the furnishing
for consideration of lodging for a period of less than 30 days at a hotel, motel, rooming
house, tourist court, or trailer camp located within the city by a hotel or motel which has
more than 50 rooms available for lodging; the tax imposed under this clause shall be at a
rate that, when added to the sum of the rate of the sales tax imposed under Minnesota
Statutes, chapter 297A, the rate of the sales tax imposed under section 4, and the rate of any
other taxes on lodging in the city of Minneapolis, equals deleted text begin 13deleted text end new text begin 13.875new text end percent; and
(3) a sales tax of not more than three percent on the gross receipts on all sales of food
primarily for consumption on or off the premises by restaurants and places of refreshment
as defined by resolution of the city that occur within the downtown taxing area.
The taxes authorized by this section must not be terminated before January 1, 2047. The
taxes shall be imposed and may be adjusted periodically by the city council such that the
rates imposed produce revenue sufficient, together with the tax imposed under section 4,
to finance the purposes described in Minnesota Statutes, section 297A.994, and section 4,
subdivisions 3 and 4. These taxes shall be applied, first, as provided in Minnesota Statutes,
section 297A.994, subdivision 3, clauses (1) to (3), and then, solely to pay, secure, maintain,
and fund the payment of any principal of, premium on, and interest on any bonds or any
other purposes in section 4, subdivision 3 or 4. The commissioner of revenue may enter
into appropriate agreements with the city to provide for the collection of these taxes by the
state on behalf of the city. These taxes shall be subject to the same interest, penalties, and
enforcement provisions as the taxes imposed under Minnesota Statutes, chapter 297A.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
September 30, 2019.
new text end
Sec. 8.
Laws 1986, chapter 462, section 31, as amended by Laws 1991, chapter 291, article
8, section 24, and Laws 2011, chapter 112, article 4, section 6, is amended to read:
Sec. 31. AUTHORITY FOR TAXATION.
Notwithstanding Minnesota Statutes, section 477A.016, or any other law, and
supplemental to the tax imposed by Laws 1982, chapter 523, article 25, section 1, the city
of St. Paul may impose, by ordinance, a tax, at a rate not greater than deleted text begin threedeleted text end new text begin fournew text end percent, on
the gross receipts from the furnishing for consideration of lodging and related services at a
hotel, rooming house, tourist court, motel, or resort, other than the renting or leasing of
space for a continuous period of 30 days or more. The tax does not apply to the furnishing
of lodging and related services by a business having less than 50 lodging rooms. The tax
shall be collected by and its proceeds paid to the city. Ninety-five percent of the revenues
generated by this tax shall be used to fund a convention bureau to market and promote the
city as a tourist or convention center.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the first day of the calendar quarter
beginning at least 30 days after the governing body of the city of St. Paul and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 9.
Laws 1994, chapter 587, article 9, section 11, is amended to read:
Sec. 11. TWO HARBORS LODGING TAX.
Notwithstanding Minnesota Statutes, section 477A.016, or other law, in addition to a
tax authorized in Minnesota Statutes, section 469.190, the city of Two Harbors may impose,
by ordinance, a tax of up to one percent on the gross receipts subject to the lodging tax
under Minnesota Statutes, section 469.190. The proceeds of the tax shall be dedicated and
used to provide preservation, display, and interpretation of the tug boat Edna G. The total
tax imposed by the city under this sectionnew text begin , by Lake County under section 24,new text end and under
Minnesota Statutes, section 469.190, shall not exceed deleted text begin threedeleted text end new text begin fivenew text end percent.
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 Two Harbors and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 10.
Laws 1998, chapter 389, article 8, section 45, subdivision 1, is amended to read:
Subdivision 1.
Sales and use taxes.
new text begin (a) new text end Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, if approved by the voters
of the city at the next general election held after the date of final enactment of this act, the
city of Two Harbors may impose by ordinance, a sales and use tax at a rate of up to one-half
of one percent for the purposes specified in subdivision 3new text begin , paragraph (a)new text end .
new text begin
(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
sections 297A.99 and 477A.016, or any other law, ordinance, or city charter, and as approved
by the voters at the November 6, 2018, general election, the city of Two Harbors may, by
ordinance, impose an additional sales and use tax at a rate of one-half of one percent for
the purposes specified in subdivision 3, paragraph (b).
new text end
new text begin (c)new text end The provisions of Minnesota Statutes, section deleted text begin 297A.48deleted text end new text begin 297A.99new text end , govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision.
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 Two Harbors and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 11.
Laws 1998, chapter 389, article 8, section 45, subdivision 3, as amended by Laws
2008, chapter 366, article 7, section 11, is amended to read:
Subd. 3.
Use of revenues.
new text begin (a) new text end Revenues received from the taxes authorized under
subdivision 1new text begin , paragraph (a),new text end must be used for sanitary sewer separation, wastewater
treatment, water system improvements, and harbor refuge development projects.
new text begin
(b) Revenues from the tax authorized under subdivision 1, paragraph (b), must be used
by the city of Two Harbors to pay the costs of collecting and administering the tax and to
finance the capital and administrative costs of water and sewer infrastructure projects
including gravity-fed sewer mains, water mains, drain tile, service lines, street patching,
acquiring property, related engineering, and construction expenses.
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 Two Harbors and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 12.
Laws 1998, chapter 389, article 8, section 45, subdivision 4, is amended to read:
Subd. 4.
Bonding authority.
(a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance the capital expenditure and improvement projectsnew text begin under subdivision
1, paragraph (a)new text end . An election to approve the bonds under Minnesota Statutes, section 475.58,
may be held in combination with the election to authorize imposition of the tax under
subdivision 1new text begin , paragraph (a)new text end . Whether to permit imposition of the tax and issuance of bonds
may be posed to the voters as a single question. The question must state that the sales tax
revenues are pledged to pay the bonds, but that the bonds are general obligations and will
be guaranteed by the city's property taxes.
(b) new text begin The city may issue bonds under Minnesota Statutes, chapter 475, to pay capital and
administrative expenses for the projects described in subdivision 3, paragraph (b), in an
amount that does not exceed $30,000,000. An election to approve the bonds under Minnesota
Statutes, section 475.58, is not required.
new text end
new text begin (c) new text end The issuance of bonds under this subdivision is not subject to Minnesota Statutes,
section 275.60.
deleted text begin (c)deleted text end new text begin (d)new text end The bonds are not included in computing any debt limitation applicable to the
city, and the levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and
interest on the bonds is not subject to any levy limitation.
The aggregate principal amount of bonds, plus the aggregate of the taxes used directly to
pay eligible capital expenditures and improvements new text begin under subdivision 3, paragraph (a), new text end may
not exceed $20,000,000, plus an amount equal to the costs related to issuance of the bonds.
deleted text begin (d)deleted text end new text begin (e)new text end The taxes may be pledged to and used for the payment of the bonds and any bonds
issued to refund them, only if the bonds and any refunding bonds are general obligations
of the city.
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 Two Harbors and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 13.
Laws 1998, chapter 389, article 8, section 45, subdivision 5, is amended to read:
Subd. 5.
Termination of taxes.
new text begin (a) new text end The authority granted under subdivision 1new text begin , paragraph
(a),new text end to the city of Two Harbors to impose sales and use taxes expires when the costs of the
projects described in subdivision 3new text begin , paragraph (a),new text end have been paid.
new text begin
(b) The authority granted under subdivision 1, paragraph (b), expires at the earlier of:
(1) 25 years after the tax is first imposed; or (2) when the city council determines that the
amount of revenues received from the taxes first equals or exceeds $30,000,000, plus the
additional amount needed to pay the costs related to issuance of bonds under subdivision
4, paragraph (b), including interest on the bonds. Any funds remaining after completion of
the project and retirement or redemption of the bonds may be placed in the general fund of
the city. The taxes imposed under subdivision 1, paragraph (b), may expire at an earlier
time if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Two Harbors and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 14.
Laws 2011, First Special Session chapter 7, article 4, section 10, subdivision 3,
is amended to read:
Subd. 3.
Use of revenues.
Revenues received from taxes authorized by subdivisions 1
and 2 must be used by the city to pay the cost of collecting the taxes and to pay for the
following projects:
(1) $4,500,000 for construction and completion of park improvement projects, including
St. Louis River riverfront improvements; Veteran's Park construction and improvements;
improvements to the Hilltop Park soccer complex and Braun Park baseball complex; capital
equipment and building and grounds improvements at the Pine Valley Park/Pine Valley
Hockey Arena/Cloquet Area Recreation Center; and development of pedestrian trails within
the city;
(2) $5,800,00 for extension of utilities and the construction of all improvements associated
with the development of property adjacent to Highway 33 and Interstate Highway 35,
including payment of all debt service on bonds issued for these; and
(3) $6,200,000 for engineering and construction of infrastructure improvements,
including, but not limited to, storm sewer, sanitary sewer, and water in areas identified as
part of the city's comprehensive land use plan.
Authorized expenses include, but are not limited to, acquiring property and paying
construction expenses related to these improvements, and paying debt service on bonds or
other obligations issued to finance acquisition and construction of these improvements.new text begin
Notwithstanding the revenue allocations in clauses (1) and (3), if the amount spent for the
improvements under clause (2) are less than the $5,800,000 allowed under that clause, the
total amount spent for the purposes listed in clauses (1) and (3) may be increased by the
difference between $5,800,000 and the amount actually spent under clause (2). However,
the total expenditures for projects under this subdivision may not exceed $16,500,000,
excluding any costs related to issuance of bonds under subdivision 4.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Cloquet and its chief clerical officer comply with the provisions of section 645.021,
subdivisions 2 and 3.
new text end
Sec. 15. new text begin CITY OF AVON; TAXES AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax; authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, the city of Avon, pursuant to approval by the voters at the general election on
November 6, 2018, may impose by ordinance a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax may not be imposed until the city complies with the provisions of section 31.
new text end
new text begin Subd. 2. new text end
new text begin Use of revenues. new text end
new text begin
Revenues received from taxes authorized by subdivision 1
must be used by the city to:
new text end
new text begin
(1) pay the costs of collecting and administering the tax;
new text end
new text begin
(2) pay the capital and administrative costs of transportation improvement projects as
adopted in the city of Avon's street priority improvement plan; and
new text end
new text begin
(3) pay debt service on bonds issued under subdivision 3 or other obligations issued to
finance the improvements listed in this subdivision in the city.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city may issue bonds under Minnesota Statutes,
chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate
principal amount of bonds issued under this subdivision may not exceed $1,500,000 plus
an amount to be applied to the payment of the costs of issuing the bonds. The bonds may
be paid from or secured by any funds available to the city, including the tax authorized
under subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61.
new text end
new text begin
(b) The bonds are not included in computing any debt limitation applicable to the city,
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
(a) The tax imposed under subdivision 1 expires at the
earlier of: (1) December 31, 2045; or (2) when the city council determines that $1,500,000
has been received from the tax to pay for the cost of the projects authorized under subdivision
2, plus an amount sufficient to pay the costs related to issuance of the bonds authorized
under subdivision 3, including interest on the bonds.
new text end
new text begin
(b) Any funds remaining after payment of all such costs and retirement or redemption
of the bonds shall be placed in the general fund of the city. The tax imposed under subdivision
1 may expire at an earlier time if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 16. new text begin CITY OF BLUE EARTH; LOCAL TAX AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and as approved by the voters
at the general election of November 6, 2018, the city of Blue Earth may impose by ordinance
a sales and use tax of one-half of one percent for the purposes specified in subdivision 2.
Except as otherwise provided in this section, the provisions of Minnesota Statutes, section
297A.99, govern the imposition, administration, collection, and enforcement of the tax
authorized under this subdivision. The tax may not be imposed until the city complies with
the provisions of section 31.
new text end
new text begin Subd. 2. new text end
new text begin Use of sales and use tax revenues. new text end
new text begin
The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Blue Earth to pay the costs of collecting
and administering the tax and to finance the capital and administrative costs of constructing
and funding sewer plant improvements, street reconstruction projects, and recreational
amenities. The total that may be raised from the tax to pay for these projects is limited to
$5,000,000, plus the costs related to the issuance and paying debt service on bonds for these
projects.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of Blue Earth may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $5,000,000, plus an amount to be applied to the payment of the costs of issuing
the bonds. The bonds may be paid from or secured by any funds available to the city of
Blue Earth, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end
new text begin
(b) The bonds are not included in computing any debt limitation applicable to the city
of Blue Earth, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the
earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
that $5,000,000, plus an amount sufficient to pay the costs related to issuing the bonds
authorized under subdivision 3, including interest on the bonds, has been received from the
tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds due to timing of
the termination under Minnesota Statutes, section 297A.99, shall be placed in the general
fund of the city. The tax imposed under subdivision 1 may expire at an earlier time if the
city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Blue Earth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 17. new text begin CITY OF CAMBRIDGE; TAX AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and as approved by the voters at the November 6, 2018, general election, the city of
Cambridge may impose, by ordinance, a sales and use tax of one-half of one percent for
the purposes specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax may not
be imposed until the city complies with the provisions of section 31 as it relates to funding
of the street improvements in subdivision 2, clause (2).
new text end
new text begin Subd. 2. new text end
new text begin Use of sales and use tax revenues. new text end
new text begin
The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Cambridge to pay the costs of collecting
and administering the tax and paying for the following infrastructure projects in the city,
including securing and paying debt service on bonds issued to finance all or part of the
following projects:
new text end
new text begin
(1) $8,000,000 plus associated bonding costs for construction of a new facility to house
the Cambridge Public Library and the East Central Regional Library Headquarters; and
new text end
new text begin
(2) $14,000,000 plus associated bonding costs for street improvements outlined in the
Street Capital Improvement Program approved by the city council as of January 22, 2019,
and outdoor park improvements described in the park master plan as of January 22, 2019.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of Cambridge may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed: (1) $8,000,000 for the project listed in subdivision 2, clause (1), plus an amount
applied to the payment of costs of issuing the bonds; and (2) $14,000,000 for the projects
listed in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing
the bonds. The bonds may be paid from or secured by any funds available to the city of
Cambridge, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end
new text begin
(b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the
earlier of: (1) December 31, 2043; or (2) when the city council determines that the city has
received from this tax $22,000,000 to fund the projects listed in subdivision 2 plus an amount
sufficient to pay costs, including interest costs, related to the issuance of the bonds authorized
in subdivision 3. Any funds remaining after payment of the allowed costs due to timing of
the termination under Minnesota Statutes, section 297A.99, shall be placed in the city's
general fund. The tax imposed under subdivision 1 may expire at an earlier time if the city
so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Cambridge and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 18. new text begin CITY OF DETROIT LAKES; LOCAL SALES AND USE TAX
AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and as approved by the voters at the November 6, 2018, general election, the city of Detroit
Lakes may impose, by ordinance, a sales and use tax of one-half of one percent for the
purposes specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end
new text begin Subd. 2. new text end
new text begin Use of sales and use tax revenues. new text end
new text begin
The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Detroit Lakes to pay the costs of collecting
and administering the tax, and construction of a new police department facility in the city,
including securing and paying debt service on bonds issued to finance all or part of this
project. The total amount of the police department facility to be funded with the tax imposed
under subdivision 1 shall not exceed $6,700,000, excluding associated debt service costs.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of Detroit Lakes may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $6,700,000, plus an amount applied to the payment of costs of
issuing the bonds. The bonds may be paid from or secured by any funds available to the
city of Detroit Lakes, including the tax authorized under subdivision 1. The issuance of
bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
275.61.
new text end
new text begin
(b) The bonds are not subject to any provisions of the home rule charter of the city of
Detroit Lakes and are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the
earlier of: (1) ten years after the tax is first imposed; or (2) when the city council determines
that the city has received $6,700,000 from this tax to fund the projects listed in subdivision
2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of
the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed
costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be
placed in the city's general fund. The tax imposed under subdivision 1 may expire at an
earlier time if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Detroit Lakes and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 19. new text begin CITY OF ELK RIVER; TAX AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law or ordinance, and as approved
by the voters at the November 6, 2018, general election, the city of Elk River may impose,
by ordinance, a sales and use tax of one-half of one percent for the purposes specified in
subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota
Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement
of the tax authorized under this subdivision.
new text end
new text begin Subd. 2. new text end
new text begin Use of sales and use tax revenues. new text end
new text begin
(a) The revenues derived from the tax
authorized under subdivision 1 must be used by the city of Elk River to:
new text end
new text begin
(1) pay the costs of collecting and administering the tax;
new text end
new text begin
(2) pay the capital and administrative costs of various recreational facility and park
improvements including any or all of the following: a multipurpose recreational facility
such as an ice arena, a community meeting and activity space, and a synthetic turf field
house; senior center facility improvements; Lion John Weicht Park improvements, Lions
Park Center space improvements, and a community picnic pavilion addition; youth athletic
complex improvements; Orono Park improvements; dredging Lake Orono; and citywide
trail connection improvements; and
new text end
new text begin
(3) secure and pay debt service on bonds issued to finance all or part of the projects
listed in clause (2).
new text end
new text begin
(b) The total that may be raised from the tax to pay for these projects is limited to
$35,000,000, plus the costs related to the issuance and paying debt service on bonds for
these projects.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of Elk River may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $35,000,000, plus an amount applied to the payment of costs of issuing the
bonds. The bonds may be paid from or secured by any funds available to the city of Elk
River, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end
new text begin
(b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the
earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
that the city has received $35,000,000 from this tax to fund the projects listed in subdivision
2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of
the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed
costs due to timing of the termination under section 297A.99 shall be placed in the city's
general fund. The tax imposed under subdivision 1 may expire at an earlier time if the city
so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Elk River and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 20. new text begin CITY OF EXCELSIOR; LOCAL SALES AND USE TAX AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, the city of Excelsior may impose, by ordinance, a sales and use tax of up to one-half
of one percent for the purposes specified in subdivision 2, as approved by the voters at the
November 4, 2014, general election. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end
new text begin Subd. 2. new text end
new text begin Use of sales and use tax revenues. new text end
new text begin
The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Excelsior to pay the costs of collecting and
administering the tax and to finance the capital and administrative costs of improvements
to the commons as indicated in the Commons Master Plan as adopted by the city council
on November 20, 2017. Authorized expenses include, but are not limited to, improvements
for walkability and accessibility, enhancement of beach area and facilities, prevention and
management of shoreline erosion, redesign of the port and band shell, improvement of
playground equipment, and securing and paying debt service on bonds issued under
subdivision 3 or other obligations issued to the improvements listed in this subdivision in
the city of Excelsior.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) If the imposition of the tax is approved by the voters
under subdivision 1, the city of Excelsior may issue bonds under Minnesota Statutes, chapter
475, to finance all or a portion of the costs of the projects authorized in subdivision 2,
without a second vote. The aggregate principal amount of bonds issued under this subdivision
may not exceed $7,000,000, plus an amount to be applied to the payment of the costs of
issuing the bonds. The bonds may be paid from or secured by any funds available to the
city of Excelsior, including the tax authorized under subdivision 1. The issuance of bonds
under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end
new text begin
(b) The bonds are not included in computing any debt limitation applicable to the city
of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the
earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
that $7,000,000 has been received from the tax to pay for the cost of the projects authorized
under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Excelsior and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 21. new text begin CITY OF GLENWOOD; TAX AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and as approved by the voters
at the November 6, 2018, general election, the city of Glenwood may impose, by ordinance,
a sales and use tax of up to one-half of one percent for the purposes specified in subdivision
2. Except as otherwise provided in this section, the provisions of Minnesota Statutes, section
297A.99, govern the imposition, administration, collection, and enforcement of the tax
authorized under this subdivision. The tax may not be imposed until the city complies with
the provisions of section 31.
new text end
new text begin Subd. 2. new text end
new text begin Use of sales and use tax revenues. new text end
new text begin
The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Glenwood to pay the costs of collecting and
administering the tax and to finance, including securing and paying debt service on, all or
part of the following projects:
new text end
new text begin
(1) the capital costs of the Phases II and III improvements to 2nd Street SE as set forth
in the city's capital improvement plan;
new text end
new text begin
(2) the development and expansion of, and improvements to, city parks, trails, and
recreational facilities; and
new text end
new text begin
(3) improvements to Glenwood City Hall and police station.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of Glenwood may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $2,800,000, plus an amount applied to the payment of costs of issuing the bonds.
The bonds may be paid from or secured by any funds available to the city of Glenwood,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end
new text begin
(b) The bonds are not subject to any provisions of the home rule charter of the city of
Glenwood and are not included in computing any debt limitation applicable to the city. Any
levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest on
the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
that the city has received $2,800,000 from this tax to fund the projects listed in subdivision
2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of
the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed
costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be
placed in the city's general fund. The tax imposed under subdivision 1 may expire at an
earlier time if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Glenwood and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 22. new text begin CITY OF INTERNATIONAL FALLS; TAX AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and as approved by the voters at the November 6, 2018, general election, the city of
International Falls may impose, by ordinance, a sales and use tax of up to one percent for
the purposes specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax may not
be imposed until the city complies with the provisions of section 31.
new text end
new text begin Subd. 2. new text end
new text begin Use of sales and use tax revenues. new text end
new text begin
The revenues derived from the tax authorized
under subdivision 1 must be used by the city of International Falls to pay the costs of
collecting and administering the tax, and paying for transportation and other public
infrastructure projects in the city, including securing and paying debt service on bonds
issued to finance all or part of these projects. The total amount of transportation and other
public infrastructure projects to be funded with the tax imposed under subdivision 1 shall
not exceed $30,000,000, excluding associated debt service costs.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of International Falls may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $30,000,000, plus an amount applied to the payment of costs
of issuing the bonds. The bonds may be paid from or secured by any funds available to the
city of International Falls, including the tax authorized under subdivision 1. The issuance
of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
275.61.
new text end
new text begin
(b) The bonds are not subject to any provisions of the home rule charter of the city of
International Falls and are not included in computing any debt limitation applicable to the
city. Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and
interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the
earlier of: (1) 30 years after the tax is first imposed; or (2) when the city council determines
that the city has received $30,000,000 from this tax to fund the projects listed in subdivision
2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of
the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed
costs due to timing of the termination under section 297A.99 shall be placed in the general
fund of the city. The tax imposed under subdivision 1 may expire at an earlier time if the
city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of International Falls and its chief clerical officer comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end
Sec. 23. new text begin CITY OF LA CRESCENT; LOCAL LODGING TAX AUTHORIZED.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 477A.016, or other law, in addition to a
tax authorized in Minnesota Statutes, section 469.190, the city of La Crescent may impose
by ordinance a tax of up to two percent on the gross receipts subject to the lodging tax under
Minnesota Statutes, section 469.190. The proceeds of the tax must be used for the same
purposes as required under Minnesota Statutes, section 469.190. The total tax imposed
under this section, and under Minnesota Statutes, section 469.190, must not exceed five
percent.
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 La Crescent and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 24. new text begin LAKE COUNTY; LOCAL LODGING TAX AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Lodging tax. new text end
new text begin
(a) Notwithstanding Minnesota Statutes, section 477A.016,
or any other provision of law, ordinance, or city charter, the Board of Commissioners of
Lake County may impose, by ordinance, a tax of up to four percent on the gross receipts
subject to the lodging tax under Minnesota Statutes, section 469.190. This tax is in addition
to any tax imposed under Minnesota Statutes, section 469.190. The total tax imposed by
the county under this section, by the city of Two Harbors under Laws 1994, chapter 587,
article 9, section 11, and under Minnesota Statutes, section 469.190, must not exceed seven
percent.
new text end
new text begin
(b) No other city or town located in Lake County that did not impose a local lodging tax
under Minnesota Statutes, section 469.190, prior to May 1, 2019, may impose a tax under
Minnesota Statutes, section 469.190, while a tax is in effect under this section.
new text end
new text begin Subd. 2. new text end
new text begin Allowed use of revenues. new text end
new text begin
The revenues derived from the taxes imposed in
subdivision 1 must be used to fund a new Lake County Event and Visitors Bureau as
established by or contracted with the Board of Commissioners of Lake County. The Board
of Commissioners must use 75 percent of revenues for marketing the county and 25 percent
of revenues to fund and promote community events and festivals in the county. The Board
of Commissioners of Lake County must annually review the budget of the Lake County
Event and Visitors Bureau. The event and visitors bureau may not receive revenues raised
from the taxes imposed in subdivision 1 until the Board of Commissioners approves the
annual budget.
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 Lake
County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 25. new text begin CITY OF NORTH MANKATO; LOCAL FOOD AND BEVERAGE TAX
AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Food and beverage tax authorized. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 477A.016, or any ordinance, city charter, or other provision of law, the city of North
Mankato may, by ordinance, impose a sales tax of up to one percent on the gross receipts
on all sales of food and beverages by a restaurant or place of refreshment, as defined by
resolution of the city, that are located within the city. For purposes of this section, "food
and beverages" includes 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 from tax. new text end
new text begin
(a) The proceeds of any tax imposed under
subdivision 1 shall be used by the city to pay all or a portion of the expenses of:
new text end
new text begin
(1) operation, maintenance, and capital expenses for the Caswell Park Regional Sporting
Complex; and
new text end
new text begin
(2) for costs related to regional tourism events.
new text end
new text begin
(b) Authorized capital expenses include securing or paying debt service on bonds or
other obligations issued to finance the construction of the Caswell Park Regional Sporting
Complex facilities.
new text end
new text begin Subd. 3. new text end
new text begin Collection, administration, and enforcement. new text end
new text begin
If the city desires, it may enter
into an agreement with the commissioner of revenue to administer, collect, and enforce the
taxes authorized under subdivisions 1 and 2. If the commissioner agrees to collect the tax,
the provisions of Minnesota Statutes, section 297A.99, related to collection, administration,
and enforcement apply.
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 North Mankato and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 26. new text begin CITY OF PERHAM; LOCAL SALES AND USE TAX AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance, and
based on the approval by the voters at the November 6, 2018, election, the city of Perham
may impose by ordinance a sales and use tax of up to one-half of one percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision.
new text end
new text begin Subd. 2. new text end
new text begin Use of revenues. new text end
new text begin
The revenues derived from the tax authorized under subdivision
1 must be used by the city of Perham to:
new text end
new text begin
(1) pay the costs of collecting and administering the tax;
new text end
new text begin
(2) finance the capital costs of site preparation, redevelopment, renovation, and
construction of buildings, land, and infrastructure at the site of the Perham Area Community
Center; and
new text end
new text begin
(3) pay debt service on bonds issued under subdivision 3 or other obligations issued to
the improvements listed in this subdivision in the city of Perham.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of Perham may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $5,200,000, plus an amount to be applied to the payment of the costs of issuing
the bonds. The bonds may be paid from or secured by any funds available to the city of
Perham, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end
new text begin
(b) The bonds are not included in computing any debt limitation applicable to the city
of Perham, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
that $5,200,000 has been received from the tax to pay for the cost of the projects authorized
under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Perham and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 27. new text begin CITY OF ROGERS; LOCAL TAXES AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
sections 297A.99 and 477A.016, or any other law or ordinance, and as approved by the
voters at the general election of November 6, 2018, the city of Rogers may impose, by
ordinance, a sales and use tax of one-quarter of one percent for the purposes specified in
subdivision 3. Except as otherwise provided in this section, the provisions of Minnesota
Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement
of the taxes authorized under this subdivision.
new text end
new text begin Subd. 2. new text end
new text begin Excise tax authorized. new text end
new text begin
Notwithstanding Minnesota Statutes, section 477A.016,
or any other contrary provision of law, or ordinance, the city of Rogers may impose by
ordinance, for the purposes specified in subdivision 3, an excise tax of up to $20 per motor
vehicle, as defined by ordinance, purchased or acquired from any person engaged within
the city of Rogers in the business of selling motor vehicles at retail.
new text end
new text begin Subd. 3. new text end
new text begin Use of sales and use tax and excise tax revenues. new text end
new text begin
(a) The revenues derived
from the taxes authorized under subdivisions 1 and 2 must be used by the city of Rogers to
pay the costs of collecting and administering the taxes and the capital and administrative
costs of any or all of the following projects:
new text end
new text begin
(1) trail and pedestrian facilities including an I-94 pedestrian crossing, a County Road
144 pedestrian tunnel, and other new trails and trail connections;
new text end
new text begin
(2) aquatics facilities consisting of either or both of a splash pad and any contribution
toward the community portion of a school pool; and
new text end
new text begin
(3) community athletic facilities including construction of South Community park, site
improvements for future recreation facilities, and a multipurpose indoor turf facility.
new text end
new text begin
(b) The total that may be raised from the taxes to pay for these projects is limited to
$16,500,000, plus the costs related to the issuance and paying debt service on bonds for
these projects.
new text end
new text begin Subd. 4. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of Rogers may issue bonds under Minnesota
Statutes, chapter 475, pursuant to approval by the voters at the general election of November
6, 2018, to finance all or a portion of the costs of the projects authorized in subdivision 3.
The aggregate principal amount of bonds issued under this subdivision may not exceed
$16,500,000, plus an amount equal to interest on and the costs of issuing the bonds. The
bonds may be paid from or secured by any funds available to the city of Rogers, including
the taxes authorized under subdivisions 1 and 2.
new text end
new text begin
(b) The bonds are not included in computing any debt limitation applicable to the city
of Rogers, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 5. new text end
new text begin Termination of taxes. new text end
new text begin
The taxes imposed under subdivisions 1 and 2 expire
at the earlier of: (1) 20 years after the taxes are first imposed; or (2) when the city council
determines that $16,500,000, plus an amount sufficient to pay interest on and the costs of
issuing the bonds authorized under subdivision 4, has been received from the taxes to pay
for the cost of the projects authorized under subdivision 3. Any funds remaining after
payment of all such costs and payment of the bonds in full shall be placed in the general
fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at an earlier time
if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Rogers and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 28. new text begin CITY OF SARTELL; LOCAL TAXES AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Food and beverage tax authorized. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99 or 477A.016, or any ordinance or other provision of law, the city of Sartell
may, by ordinance, impose a sales tax of up to 1-1/2 percent on the gross receipts of all food
and beverages sold by a restaurant or place of refreshment, as defined by ordinance of the
city, that is located within the city. For purposes of this section, "food and beverages" include
retail on-sale of intoxicating liquor and fermented malt beverages.
new text end
new text begin Subd. 2. new text end
new text begin Use of proceeds from authorized taxes. new text end
new text begin
The proceeds of the taxes imposed
under subdivision 1 must be used by the city to fund capital or operational costs for new
and existing recreational facilities and related amenities within the city. Authorized expenses
include securing or paying debt service on bonds or other obligations issued to finance
construction and improvement projects.
new text end
new text begin Subd. 3. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires five years
after the tax is first imposed.
new text end
new text begin Subd. 4. new text end
new text begin Collection, administration, and enforcement. new text end
new text begin
The city may enter into an
agreement with the commissioner of revenue to administer, collect, and enforce the taxes
under subdivision 1. If the commissioner agrees to collect the tax, the provisions of Minnesota
Statutes, sections 270C.171 and 297A.99, related to collection, administration, and
enforcement apply.
new text 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 Sartell and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 29. new text begin CITY OF SAUK CENTRE; TAXES AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, the city of Sauk Centre, pursuant to approval by the voters at the general election
on November 6, 2018, may impose by ordinance a sales and use tax of up to one-half of
one percent and a $20 motor vehicle excise tax for the purposes specified in subdivision 2.
Except as otherwise provided in this section, the provisions of Minnesota Statutes, section
297A.99, govern the imposition, administration, collection, and enforcement of the tax
authorized under this subdivision.
new text end
new text begin Subd. 2. new text end
new text begin Use of revenues. new text end
new text begin
Revenues received from taxes authorized by subdivision 1
must be used by the city to:
new text end
new text begin
(1) pay the costs of collecting and administering the tax;
new text end
new text begin
(2) pay the capital costs of city infrastructure improvement projects directly related to
the reconstruction of Trunk Highway 71; and
new text end
new text begin
(3) pay debt service on bonds issued under subdivision 3 or other obligations issued to
finance the improvements listed in this subdivision in the city.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city may issue bonds under Minnesota Statutes,
chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate
principal amount of bonds issued under this subdivision may not exceed $10,000,000 plus
an amount to be applied to the payment of the costs of issuing the bonds. The bonds may
be paid from or secured by any funds available to the city, including the tax authorized
under subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61.
new text end
new text begin
(b) The bonds are not included in computing any debt limitation applicable to the city,
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the
earlier of: (1) December 31, 2045; or (2) when the city council determines that $10,000,000
has been received from the tax to pay for the cost of the projects authorized under subdivision
2, plus an amount sufficient to pay the costs related to issuance of the bonds authorized
under subdivision 3, including interest on the bonds. Any funds remaining after payment
of all such costs and retirement or redemption of the bonds shall be placed in the general
fund of the city. The tax imposed under subdivision 1 may expire at an earlier time if the
city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Sauk Centre and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 30. new text begin CITY OF SCANLON; TAXES AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax; authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (b), or 477A.016, or any other law or ordinance,
the city of Scanlon, pursuant to approval by the voters at the general election on November
6, 2018, may impose by ordinance a sales and use tax of up to one-half of one percent for
the purposes specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end
new text begin Subd. 2. new text end
new text begin Use of revenues. new text end
new text begin
Revenues received from taxes authorized by subdivision 1
must be used by the city to:
new text end
new text begin
(1) pay the costs of collecting and administering the tax;
new text end
new text begin
(2) pay the capital and administrative costs of city street improvements and utility
infrastructure, including storm sewer and sanitary sewer improvements; and
new text end
new text begin
(3) pay debt service on bonds issued under subdivision 3 or other obligations issued to
finance the improvements listed in this subdivision in the city.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city may issue bonds under Minnesota Statutes,
chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate
principal amount of bonds issued under this subdivision may not exceed $400,000 plus an
amount to be applied to the payment of the costs of issuing the bonds. The bonds may be
paid from or secured by any funds available to the city, including the tax authorized under
subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61.
new text end
new text begin
(b) The bonds are not included in computing any debt limitation applicable to the city,
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
(a) The tax imposed under subdivision 1 expires at the
earlier of: (1) ten years after the tax is first imposed; or (2) when the city council determines
that $400,000 has been received from the tax to pay for the cost of the projects authorized
under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
bonds authorized under subdivision 3, including interest on the bonds.
new text end
new text begin
(b) Any funds remaining after payment of all such costs and retirement or redemption
of the bonds shall be placed in the general fund of the city. The tax imposed under subdivision
1 may expire at an earlier time if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Scanlon and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 31. new text begin CITY OF VIRGINIA; LOCAL SALES AND USE TAX AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and as approved by the voters at the November 6, 2018, general election, the city of Virginia
may impose, by ordinance, a sales and use tax of up to one percent for the purposes specified
in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota
Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement
of the tax authorized under this subdivision.
new text end
new text begin Subd. 2. new text end
new text begin Use of sales and use tax revenues. new text end
new text begin
The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Virginia to pay the costs of collecting and
administering the tax, and to finance the costs of renovation, reconstruction, expansion, and
improvements of the Miner's Memorial recreation complex and convention center. Authorized
costs include engineering and construction costs and associated bond issuance costs.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of Virginia may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $30,000,000, plus an amount applied to the payment of costs of issuing the
bonds. The bonds may be paid from or secured by any funds available to the city of Virginia,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end
new text begin
(b) The bonds are not subject to any provisions of the home rule charter of the city of
Virginia and are not included in computing any debt limitation applicable to the city. Any
levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest on
the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
that the city has received $30,000,000 from this tax to fund the projects listed in subdivision
2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of
the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed
costs due to timing of the termination under section 297A.99 shall be placed in the city's
general fund. The tax imposed under subdivision 1 may expire at an earlier time if the city
so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Virginia and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 32. new text begin CITY OF WEST ST. PAUL; LOCAL TAX AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, and as approved by the voters at the general election of November 6, 2018, the city
of West St. Paul may impose, by ordinance, a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end
new text begin Subd. 2. new text end
new text begin Use of sales and use tax revenues. new text end
new text begin
The revenues derived from the tax authorized
under subdivision 1 must be used by the city of West St. Paul to pay the costs of collecting
and administering the tax and to finance the capital and administrative costs of rebuilding
and repair of essential transportation corridors and related ancillary roads within the city,
including but not limited to Annapolis Street which borders both Ramsey and Dakota County,
the cultural corridor of Smith Avenue, historic Dodd Road, and other essential corridors.
The total that may be raised from the tax to pay for these projects is limited to $28,000,000,
plus the costs related to the issuance and paying debt service on bonds for these projects.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of West St. Paul may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $28,000,000, plus an amount to be applied to the payment of
the costs of issuing the bonds. The bonds may be paid from or secured by any funds available
to the city of West St. Paul, including the tax authorized under subdivision 1. The issuance
of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
275.61.
new text end
new text begin
(b) The bonds are not included in computing any debt limitation applicable to the city
of West St. Paul, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
that $28,000,000, plus an amount sufficient to pay the costs related to issuing the bonds
authorized under subdivision 3, including interest on the bonds, has been received from the
tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of West St. Paul and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 33. new text begin CITY OF WILLMAR; TAX AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and as approved by the voters at the November 6, 2018, general election, the city of Willmar
may impose, by ordinance, a sales and use tax of up to one-half of one percent for the
purposes specified in subdivision 3. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end
new text begin Subd. 2. new text end
new text begin Excise tax authorized. new text end
new text begin
Notwithstanding Minnesota Statutes, section 477A.016,
or any other contrary provision of law, ordinance, or city charter, the city of Willmar may
impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up to $20
per motor vehicle, as defined by ordinance, purchased or acquired from any person engaged
within the city of Willmar in the business of selling motor vehicles at retail.
new text end
new text begin Subd. 3. new text end
new text begin Use of revenues. new text end
new text begin
(a) The revenues derived from the taxes authorized under
subdivisions 1 and 2 must be used by the city of Willmar to pay the costs of collecting and
administering the taxes, and to pay for the projects listed in this subdivision, including
securing and paying debt service on bonds issued to finance all or part of these projects.
The total amount of projects to be funded with the taxes imposed under subdivisions 1 and
2 shall not exceed $30,000,000 plus the costs related to the issuance and paying debt service
on bonds for these projects. The amount that may be spent on each project is limited to:
new text end
new text begin
(1) $2,000,000 for a community center replacement;
new text end
new text begin
(2) $6,000,000 for new athletic fields;
new text end
new text begin
(3) $3,000,000 for infrastructure improvements at Robins Island Regional Park;
new text end
new text begin
(4) $2,000,000 for a new playground and spectator amenities at Swansson Field Regional
Park;
new text end
new text begin
(5) $7,000,000 for storm water management infrastructure improvements; and
new text end
new text begin
(6) $10,000,000 for a new recreation and event center.
new text end
new text begin
(b) Notwithstanding the limits listed in paragraph (a) the city may by ordinance reallocate
up to ten percent of the funds designated for one or more projects listed in that paragraph
to other projects listed in that paragraph.
new text end
new text begin Subd. 4. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of Willmar may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 3. The aggregate principal amount of bonds issued under this subdivision may
not exceed $30,000,000, plus an amount applied to the payment of costs of issuing the
bonds. The bonds may be paid from or secured by any funds available to the city of Willmar,
including the taxes authorized under subdivisions 1 and 2. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end
new text begin
(b) The bonds are not subject to any provisions of the home rule charter of the city of
Willmar and are not included in computing any debt limitation applicable to the city. Any
levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest on
the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 5. new text end
new text begin Termination of taxes. new text end
new text begin
The taxes imposed under subdivisions 1 and 2 expire
at the earlier of: (1) 13 years after the taxes are first imposed; or (2) when the city council
determines that the city has received $30,000,000 from this tax to fund the projects listed
in subdivision 3 plus an amount sufficient to pay interest on and the costs of the issuance
of the bonds authorized in subdivision 4. Any funds remaining after payment of the allowed
costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be
placed in the city's general fund. The taxes imposed under subdivisions 1 and 2 may expire
at an earlier time if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Willmar and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 34. new text begin CITY OF WORTHINGTON; TAX AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and as approved by the voters at the November 6, 2018, general election, the city of
Worthington may impose, by ordinance, a sales and use tax of one-half of one percent for
the purposes specified in subdivision 3. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The taxes under
this subdivision and subdivision 2 may not be imposed until the city complies with the
provisions of section 31.
new text end
new text begin Subd. 2. new text end
new text begin Use of tax revenues. new text end
new text begin
(a) The revenues derived from the taxes authorized under
subdivision 1 must be used by the city of Worthington to pay the costs of collecting and
administering the tax and paying for the projects listed in this subdivision, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end
new text begin
(1) improvements to the aquatic center;
new text end
new text begin
(2) improvements to the field house;
new text end
new text begin
(3) improvements to the ice arena;
new text end
new text begin
(4) other park and recreation capital projects and improvements;
new text end
new text begin
(5) lake quality improvement; and
new text end
new text begin
(6) improvements to the 10th Street plaza.
new text end
new text begin
(b) The total amount of projects to be funded with the taxes imposed under subdivisions
1 and 2 shall not exceed $25,000,000 plus the costs related to the issuance of and paying
debt service on bonds for these projects.
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of Worthington may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects
authorized in subdivision 3. The aggregate principal amount of bonds issued under this
subdivision may not exceed $25,000,000 plus an amount applied to the payment of costs
of issuing the bonds. The bonds may be paid from or secured by any funds available to the
city of Worthington, including the taxes authorized under subdivisions 1 and 2. The issuance
of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
275.61.
new text end
new text begin
(b) The bonds are not subject to any provisions of the home rule charter of the city of
Worthington and are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The taxes imposed under subdivisions 1 and 2 expire
at the earlier of: (1) 15 years after the taxes are first imposed; or (2) when the city council
determines that the city has received $25,000,000 from this tax to fund the projects listed
in subdivision 3 plus an amount sufficient to pay interest on and the costs of the issuance
of the bonds authorized in subdivision 4. Any funds remaining after payment of the allowed
costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be
placed in the city's general fund. The taxes imposed under subdivisions 1 and 2 may expire
at an earlier time if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Worthington and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
ARTICLE 7
TAX INCREMENT FINANCING
Section 1.
Laws 2008, chapter 366, article 5, section 26, as amended by Laws 2013, chapter
143, article 9, section 11, is amended to read:
Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR RULE.
(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
activities must be undertaken within a five-year period from the date of certification of a
tax increment financing district, are increased to a deleted text begin 15-year deleted text end new text begin 17-year new text end period for the Port
Authority of the City of Bloomington's Tax Increment Financing District No. 1-I,
Bloomington Central Station.
(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other
law to the contrary, the city of Bloomington and its port authority may extend the duration
limits of the district for a period through December 31, 2039.
(c) Effective for taxes payable in 2014, tax increment for the district must be computed
using the current local tax rate, notwithstanding the provisions of Minnesota Statutes, section
469.177, subdivision 1a.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Bloomington and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 2.
Laws 2014, chapter 308, article 6, section 8, subdivision 1, as amended by Laws
2017, First Special Session chapter 1, article 6, section 11, is amended to read:
Subdivision 1.
Authority to create districts.
(a) The governing body of the city of
Edina or its development authority may establish one or more tax increment financing
housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries
exist on March 31, 2014.
(b) The authority to request certification of districts under this section expires on
December 31, deleted text begin 2019deleted text end new text begin 2021new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 3. new text begin CITY OF ALEXANDRIA; TIF DISTRICT NO. 50; FIVE-YEAR RULE
EXTENSION.
new text end
new text begin
The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
must be undertaken within a five-year period from the date of certification of a tax increment
financing district, is considered to be met for TIF District No. 50, administered by the city
of Alexandria, or its economic development authority, if the activities are undertaken prior
to July 16, 2023.
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 Alexandria and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 4. new text begin CITY OF ANOKA; COMMUTER RAIL TRANSIT VILLAGE TIF
DISTRICT; FIVE-YEAR RULE EXTENSION.
new text end
new text begin
The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
must be undertaken within a five-year period from the date of certification of a tax increment
financing district, is considered to be met for the Commuter Rail Transit Village tax
increment financing district, administered by the city of Anoka, if the activities are undertaken
prior to April 7, 2023.
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 Anoka and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 5. new text begin CITY OF CHAMPLIN; MISSISSIPPI CROSSINGS TIF DISTRICT;
FIVE-YEAR RULE EXTENSION; DURATION EXTENSION.
new text end
new text begin Subdivision 1. new text end
new text begin Five-year rule. new text end
new text begin
The requirement of Minnesota Statutes, section 469.1763,
subdivision 3, that activities must be undertaken within a five-year period from the date of
certification of a tax increment financing district, is extended to a ten-year period for the
Mississippi Crossings Tax Increment Financing District administered by the city of Champlin.
new text end
new text begin Subd. 2. new text end
new text begin Duration. new text end
new text begin
Notwithstanding Minnesota Statutes, section 469.176, subdivision
1b, or any other law to the contrary, the city of Champlin may elect to extend the duration
of the Mississippi Crossings Tax Increment Financing District by five years.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the governing bodies
of the city of Champlin, Hennepin County, and Independent School District No. 11
(Anoka-Hennepin), with the requirements of Minnesota Statutes, sections 469.1782,
subdivision 2; and 645.021, subdivisions 2 and 3.
new text end
Sec. 6. new text begin CITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT; SPECIAL
RULES AUTHORIZATION.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
The city of Duluth or the Duluth Economic Development
Authority may establish, by resolution, one redevelopment tax increment financing district
located in the city of Duluth, St. Louis County, Minnesota, within the area bordered on the
northeast by Slip 3 and the Pier B Resort property line extended northwest to Interstate 35,
on the southeast by the Duluth Harbor, on the southwest by the Compass Minerals property
line extended northwest to Interstate 35, and on the northwest by Interstate 35, together
with adjacent roads and rights-of-way; and such property is deemed to meet the requirements
of Minnesota Statutes, section 469.174, subdivision 10.
new text end
new text begin Subd. 2. new text end
new text begin Eligible expenditures. new text end
new text begin
Expenditures incurred in connection with the
development of the property described in subdivision 1 are deemed to meet the requirements
of Minnesota Statutes, section 469.176, subdivision 4j. Eligible expenditures for any tax
increment financing district established in the area described in subdivision 1 include,
without limitation, seawalls and pier facings adjacent to the boundaries of such district.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 7. new text begin CITY OF MINNEAPOLIS; UPPER HARBOR TERMINAL
REDEVELOPMENT TIF DISTRICT; SPECIAL RULES AUTHORIZATION.
new text end
new text begin Subdivision 1. new text end
new text begin Qualifying rules. new text end
new text begin
Notwithstanding Minnesota Statutes, section 469.174,
subdivision 10, the governing body of the city of Minneapolis may establish, by resolution,
one or more redevelopment tax increment financing districts within that portion of the North
Washington Industrial Park Redevelopment Project Area as its boundaries existed on January
1, 2019, located north of Lowry Avenue. In each resolution, the city must find that each
parcel in the district was part of property that was formerly used as a municipally owned
intermodal barge shipping facility that can no longer be used for such purpose due to the
closure of the Upper St. Anthony Falls Lock under the federal Water Resources Reform
and Development Act of 2014. Except as provided in this section, the provisions of Minnesota
Statutes, sections 469.174 to 469.1794, apply to each district created under this section.
new text end
new text begin Subd. 2. new text end
new text begin Use of increments. new text end
new text begin
Minnesota Statutes, section 469.176, subdivision 4j, does
not apply to any district established under this section.
new text end
new text begin Subd. 3. new text end
new text begin Pooling authority. new text end
new text begin
Notwithstanding Minnesota Statutes, section 469.1763,
subdivision 2, the permitted percentage of increments that may be expended on activities
outside the district, but within the project area, is increased to 35 percent for districts
established under this section.
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 Minneapolis and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 8. new text begin CITY OF ROSEVILLE; HAZARDOUS SUBSTANCE SUBDISTRICT NO.
17A; EXPENDITURE OF TAX INCREMENT.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 469.1763, or any other law to the contrary,
the city of Roseville and the Roseville Economic Development Authority may use any or
all increment generated from Hazardous Substance Subdistrict No. 17A for the purpose of
financing environmental remediation pursuant to one or more response action plans on the
parcels within the subdistrict as originally certified, regardless of the date of approval of
the response action plan by the Pollution Control Agency.
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 Roseville and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
ARTICLE 8
PUBLIC FINANCE
Section 1.
Minnesota Statutes 2018, section 37.31, subdivision 1, is amended to read:
Subdivision 1.
Bonding authority.
The society may issue negotiable bonds in a principal
amount that the society determines necessary to provide sufficient money for achieving its
purposes, including the payment of interest on bonds of the society, the establishment of
reserves to secure its bonds, the payment of fees to a third party providing credit
enhancement, and the payment of all other expenditures of the society incident to and
necessary or convenient to carry out its corporate purposes and powers. Bonds of the society
may be issued as bonds or notes or in any other form authorized by law. The principal
amount of bonds issued and outstanding under this section at any time may not exceed
deleted text begin $20,000,000deleted text end new text begin $30,000,000new text end , excluding bonds for which refunding bonds or crossover refunding
bonds have been issued.
Sec. 2.
Minnesota Statutes 2018, section 103E.611, subdivision 2, is amended to read:
Subd. 2.
Interest.
(a) Interest is an additional drainage lien on all property until paid.
The interest rate on the drainage lien principal from the date the drainage lien statement is
recorded must be set by the board but may not exceed the rate determined by the state court
administrator for judgments under section 549.09new text begin , or six percent, whichever is greaternew text end .
(b) Before the tax lists for the year are given to the county treasurer, the auditor shall
compute the interest on the unpaid balance of the drainage lien at the rate set by the board.
The amount of interest must be computed on the entire unpaid principal from the date the
drainage lien was recorded to August 15 of the next calendar year, and afterwards from
August 15 to August 15 of each year.
(c) Interest is due and payable after November 1 of each year the drainage lien principal
or interest is due and unpaid.
Sec. 3.
Minnesota Statutes 2018, section 123B.595, subdivision 5, is amended to read:
Subd. 5.
Bond authorization.
(a) A school district may issue general obligation bonds
under this section to finance facilities plans approved by its board and the commissioner.
Chapter 475, except sections 475.58 and 475.59, must be complied with. The authority to
issue bonds under this section is in addition to any bonding authority authorized by this
chapter or other law. The amount of bonding authority authorized under this section must
be disregarded in calculating the bonding or net debt limits of this chapter, or any other law
other than section 475.53, subdivision 4.
(b) At least 20 days before the earliest of deleted text begin solicitation of bids,deleted text end the issuance of bondsdeleted text begin ,deleted text end or
the final certification of levies under subdivision 6, the district must publish notice of the
intended projects, the amount of the bond issue, and the total amount of district indebtedness.
(c) The portion of revenue under this section for bonded debt must be recognized in the
debt service fund.
Sec. 4.
Minnesota Statutes 2018, section 297A.993, subdivision 1, is amended to read:
Subdivision 1.
Authorization; rates.
Notwithstanding section 297A.99, subdivisions
1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county deleted text begin outside the
metropolitan transportation area, as defined under section 297A.992, subdivision 1deleted text end , or more
than one county deleted text begin outside the metropolitan transportation areadeleted text end acting under a joint powers
agreement, may by resolution of the county board, or each of the county boards, following
a public hearing impose (1) a transportation sales tax at a rate of up to one-half of one percent
on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 per motor
vehicle, as defined in section 297B.01, subdivision 11, purchased or acquired from any
person engaged in the business of selling motor vehicles at retail, occurring within the
jurisdiction of the taxing authority.
Sec. 5.
Minnesota Statutes 2018, section 297A.993, is amended by adding a subdivision
to read:
new text begin Subd. 4. new text end
new text begin Bonds. new text end
new text begin
(a) A county may, by resolution, authorize, issue, and sell its bonds,
notes, or other obligations for the purposes specified in subdivision 2. The county may also,
by resolution, issue bonds to refund the bonds issued pursuant to this subdivision.
new text end
new text begin
(b) The bonds may be limited obligations, payable solely from or secured by taxes levied
under this section, and the county may also pledge its full faith, credit, and taxing power as
additional security for the bonds. A regional railroad authority within the county may also
pledge its taxing powers as additional security for the bonds.
new text end
new text begin
(c) Bonds may be issued in one or more series and sold without an election. The bonds
shall be secured, bear the interest rate or rates or a variable rate, have the rank or priority,
be executed in the manner, be payable in the manner, mature, and be subject to the defaults,
redemptions, repurchases, tender options, or other terms, and shall be sold in such manner
as the county may determine.
new text end
new text begin
(d) The county may enter into and perform all contracts deemed necessary or desirable
by it to issue and secure the bonds, including an indenture of trust with a trustee within or
without the state.
new text end
new text begin
(e) Except as otherwise provided in this subdivision, the bonds must be issued and sold
in the manner provided under chapter 475.
new text end
Sec. 6.
Minnesota Statutes 2018, section 471.831, is amended to read:
471.831 MUNICIPALITY MAY FILE BANKRUPTCY PETITION.
Subdivision 1.
Any relief under bankruptcy code.
A municipality, as defined in
subdivision 2, may file a petition and seek any relief available to it under United States
Code, title 11, as amended deleted text begin through December 31, 1996deleted text end .
Subd. 2.
Municipality defined.
In this section, "municipality" means a municipality as
defined in United States Code, title 11, section 101, as amended deleted text begin through December 31,
1996deleted text end , but limited to a county, statutory or home rule charter city, or town; or a housing and
redevelopment authority, economic development authority, or rural development financing
authority established under chapter 469, a home rule charter, or special law.
Sec. 7.
Minnesota Statutes 2018, section 474A.02, subdivision 22b, is amended to read:
Subd. 22b.
Public facilities project.
"Public facilities project" means any publicly owned
facility, or new text begin a new text end facility deleted text begin owned by a nonprofit organizationdeleted text end that is used for district heating or
cooling, new text begin whether publicly or privately owned, new text end that is eligible to be financed with the proceeds
of public facilities bonds as defined under section 474A.02, subdivision 23a.
Sec. 8.
Minnesota Statutes 2018, section 475.521, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
For purposes of this section, the following terms have the
meanings given.
(a) "Bonds" mean an obligation defined under section 475.51.
(b) "Capital improvement" means acquisition or betterment of public lands, buildings
or other improvements for the purpose of a city hall, town hall, library, public safety facility,
and public works facility. An improvement must have an expected useful life of five years
or more to qualify. Capital improvement does not include light rail transit or any activity
related to it, or a park, road, bridge, administrative building other than a city or town hall,
or land for any of those facilities. For purposes of this section, "capital improvement"
includes expenditures for purposes described in this paragraph that have been incurred by
a municipality before approval of a capital improvement plan, if such expenditures are
included in a capital improvement plan approved on or before the date of the public hearing
under subdivision 2 regarding issuance of bonds for such expenditures.
(c) "Municipality" means a home rule charter or statutory city or a town deleted text begin described in
section 368.01, subdivision 1 or 1adeleted text end .
Sec. 9. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2018, section 37.31, subdivision 8,
new text end
new text begin
is repealed.
new text end
Sec. 10. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 9 are effective July 1, 2019.
new text end
ARTICLE 9
MISCELLANEOUS
Section 1.
new text begin
[270C.075] PRIVATE LETTER RULINGS.
new text end
new text begin Subdivision 1. new text end
new text begin Program established. new text end
new text begin
By January 1, 2020, the commissioner shall, by
administrative rule adopted under chapter 14, establish and implement a program for issuing
private letter rulings to taxpayers to provide guidance as to how the commissioner will apply
Minnesota tax law to a specific transaction or proposed transaction, arrangement, or other
fact situation of the applying taxpayer. The commissioner must include in each ruling an
explanation of the reasoning for the determination. In establishing the terms of the program,
the commissioner may provide that rulings will not be issued in specified subject areas, for
categories of transactions, or under specified provisions of law, if the commissioner
determines doing so is in the best interests of the state and sound tax administration. The
program must include a process for the representative of a taxpayer to apply for a private
letter ruling and to communicate with the commissioner regarding the requested ruling.
new text end
new text begin Subd. 2. new text end
new text begin Application procedure; fees. new text end
new text begin
(a) The commissioner shall establish an
application procedure and forms for a taxpayer or the taxpayer's appointed representative
to request a private letter ruling. The commissioner may require the taxpayer to provide any
supporting factual information and certifications that the commissioner determines necessary
or appropriate to issue a private letter ruling. The requirements may vary based on the type
of ruling requested.
new text end
new text begin
(b) The commissioner may, in the administrative rule, establish a fee schedule to recover
the department's actual cost of preparing private letter rulings. The maximum fee per private
letter ruling is $1,000. The commissioner may require the applicant to pay the required fee
for a private letter ruling before the application is considered. If the administrative rule
provides for payment of a fee as a condition for providing a private letter ruling, the rule
must provide a fee structure that varies the amount of the fee by the complexity of the request
or the number and type of issues or both.
new text end
new text begin
(c) If the commissioner fails to issue a ruling to the taxpayer within 90 days after the
taxpayer's filing of a completed application, the commissioner must refund the application
fee to the taxpayer; however, the commissioner must issue a private letter ruling unless the
taxpayer withdraws the request.
new text end
new text begin
(d) Any fees collected under this section must be deposited in the Revenue Department
service and recovery special revenue fund established under section 270C.15, and are
appropriated to the commissioner to offset the cost of issuing private letter rulings and
related administrative costs.
new text end
new text begin Subd. 3. new text end
new text begin Effect. new text end
new text begin
(a) A private letter ruling is binding on the commissioner with respect
to the taxpayer to whom the ruling is issued if:
new text end
new text begin
(1) there was no misstatement or omission of material facts in the application or other
information provided to the commissioner;
new text end
new text begin
(2) the facts that subsequently developed were not materially different from the facts
upon which the ruling was based;
new text end
new text begin
(3) the applicable statute, administrative rule, federal law referenced by state law, or
other relevant law has not changed; and
new text end
new text begin
(4) the taxpayer acted in good faith in applying for and relying on the ruling.
new text end
new text begin
(b) Private letter rulings have no precedential effect and may not be relied upon by a
taxpayer other than as provided in paragraph (a).
new text end
new text begin Subd. 4. new text end
new text begin Public access. new text end
new text begin
The commissioner shall make private letter rulings issued under
this section available to the public on the department's website. The commissioner must
organize the private letter rulings by tax type and must make them available in a searchable
format. The published rulings must redact any information that would permit identification
of the requesting taxpayer.
new text end
new text begin Subd. 5. new text end
new text begin Legislative report. new text end
new text begin
(a) By January 31 of each odd-numbered year, the
commissioner shall report in writing to the legislature the following information for the
immediately preceding two calendar years:
new text end
new text begin
(1) the number of applications for private letter rulings;
new text end
new text begin
(2) the number of private letter rulings issued, including the number issued within the
90-day time period under subdivision 2, paragraph (c);
new text end
new text begin
(3) the amount of application fees refunded by tax type;
new text end
new text begin
(4) the tax types for which rulings were requested;
new text end
new text begin
(5) the types and characteristics of taxpayers applying for rulings; and
new text end
new text begin
(6) any other information that the commissioner considers relevant to legislative oversight
of the private letter ruling program.
new text end
new text begin
(b) The report must be filed as provided in section 3.195, and copies must be provided
to the chairs and ranking minority members of the committees of the house of representatives
and the senate with jurisdiction over taxes and appropriations to the Department of Revenue.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2021, except that the first
legislative report under subdivision 5 is due January 31, 2024.
new text end
Sec. 2.
Minnesota Statutes 2018, section 270C.31, is amended by adding a subdivision to
read:
new text begin Subd. 8. new text end
new text begin Authority to request dual examination. new text end
new text begin
(a) A qualified taxpayer that is subject
to an on-site examination or audit under this section of the amount of tax due under chapter
290 or 297A may request in writing that the commissioner conduct the examination or audit
of the taxpayer's tax due under both chapters at the same time. The request must be made
within ..... days of the receipt of the commissioner's notice of intent to conduct the on-site
audit or examination in the form prescribed by the commissioner. If a qualified taxpayer
files a timely written request under this subdivision and the commissioner elects to audit or
examine the tax due under only one of the two chapters, the commissioner may not audit
or examine the tax due under the other chapter for each taxable year or period that includes
the taxable year or the period covered by the audit or examination that was conducted.
new text end
new text begin
(b) For purposes of this subdivision, "qualified taxpayer" means a taxpayer that meets
each of the following requirements:
new text end
new text begin
(1) the taxpayer has been issued a permit to collect tax under section 297A.84;
new text end
new text begin
(2) the gross receipts of the taxpayer, as reported on the return filed under chapter 290
for the most recent taxable year, is no more than $........ In applying this clause to a taxpayer
that is member of a unitary business, as defined in section 290.17, gross receipts include
the gross receipts of all members of the unitary business; and
new text end
new text begin
(3) the commissioner audited or examined the taxpayer's return filed under chapter 290
or 297A or both for a period that ended no more than ..... years prior to the taxable year or
the period for which the qualified taxpayer made the request under this subdivision, and the
commissioner determined that no more than the greater of (1) $1,000 or (2) ... percent of
the liability for tax in additional tax was owed by the taxpayer as a result of the audit or
examination.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for examinations and audits commenced
after June 30, 2021.
new text end
Sec. 3.
Minnesota Statutes 2018, section 270C.33, is amended by adding a subdivision to
read:
new text begin Subd. 4a. new text end
new text begin Limitations; sales taxes. new text end
new text begin
(a) The provisions of this subdivision are a limitation
on the assessment authority of the commissioner under this section.
new text end
new text begin
(b) The commissioner must not assess additional tax under chapter 297A if each of the
following requirements are met:
new text end
new text begin
(1) the tax reported by the taxpayer is consistent with and based on past reporting or
other practices of the taxpayer that were fully disclosed to the commissioner and were
specifically reviewed by the commissioner, including by issuing an audit assessing no
additional tax liability with respect to that item for a prior taxable period; and
new text end
new text begin
(2) effective for a taxable period beginning after the period covered by clause (1), neither
the statute or administrative rule on which the reporting or other practice is based has been
materially changed, nor has the commissioner issued a revenue notice or directly notified
the taxpayer in writing of a change in the commissioner's position as to the proper reporting
or other treatment of the relevant income, transaction, deduction, or other item.
new text end
new text begin
(c) For an audit of a prior taxable period by the commissioner, paragraph (b), clause (1),
applies only to issues within the scope of and specifically addressed by the audit.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessments made after June 30,
2021.
new text end
Sec. 4.
Minnesota Statutes 2018, section 270C.33, is amended by adding a subdivision to
read:
new text begin Subd. 4b. new text end
new text begin Limit on assessments; reasonable cause for failure to collect or withhold. new text end
new text begin
(a)
An assessment issued under subdivision 4 is reduced or eliminated to the extent that the
amount that would otherwise be assessed arose from the taxpayer's failure to collect or
withhold a tax from another individual or entity and the taxpayer had reasonable cause for
not collecting or withholding the tax. A taxpayer may raise this ground for prohibition of
an assessment during an audit, upon appeal from an assessment, or by refund claim following
payment of the assessment.
new text end
new text begin
(b) For purposes of this subdivision and section 270C.35, subdivision 4:
new text end
new text begin
(1) ignorance of the law is not reasonable cause;
new text end
new text begin
(2) lack of clarity as to whether the law requires collection or withholding under the
circumstances may be reasonable cause; and
new text end
new text begin
(3) failure to collect or withhold in accordance with prior written advice from the
commissioner on the specific question of the requirement to collect or withhold under the
same or similar circumstances that has not been superseded or preempted by a change in
statute or administrative rule or a subsequent written notice from the commissioner to the
taxpayer prior to commencement of the period for which the failure to collect or withhold
occurred is reasonable cause.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessments made after June 30,
2021.
new text end
Sec. 5.
Minnesota Statutes 2018, section 270C.34, subdivision 1, is amended to read:
Subdivision 1.
Authority.
(a) The commissioner may abate, reduce, or refund any penalty
or interest that is imposed by a law administered by the commissioner, or imposed by section
270.0725, subdivision 1 or 2, or 270.075, subdivision 2, as a result of the late payment of
tax or late filing of a return, or any part of an additional tax charge under section 289A.25,
subdivision 2, or 289A.26, subdivision 4, if the failure to timely pay the tax or failure to
timely file the return is due to reasonable cause, or if the taxpayer is located in a presidentially
declared disaster or in a presidentially declared state of emergency area or in an area declared
to be in a state of emergency by the governor under section 12.31.
(b) The commissioner shall abate any part of a penalty or additional tax charge under
section 289A.25, subdivision 2, or 289A.26, subdivision 4, attributable to erroneous advice
given to the taxpayer in writing by an employee of the department acting in an official
capacity, if the advice:
(1) was reasonably relied on and was in response to a specific written request of the
taxpayer; and
(2) was not the result of failure by the taxpayer to provide adequate or accurate
information.
new text begin
(c) In addition to the authority under paragraphs (a) and (b), the commissioner may
decline to impose or may abate any penalty under section 289A.60 or other law, or an
additional tax charge under section 289A.25, subdivision 2, or 289A.26, subdivision 4.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2021.
new text end
Sec. 6.
Minnesota Statutes 2018, section 270C.35, subdivision 4, is amended to read:
Subd. 4.
Time and content for administrative appeal.
Within 60 days after the notice
date, the taxpayer must file a written appeal with the commissioner. The appeal need not
be in any particular form but must contain the following information:
(1) name and address of the taxpayer;
(2) if a corporation, the state of incorporation of the taxpayer, and the principal place of
business of the corporation;
(3) the Minnesota identification number or Social Security number of the taxpayer;
(4) the type of tax involved;
(5) the date;
(6) the tax years or periods involved and the amount of tax involved for each year or
period;
(7) the findings in the notice that the taxpayer disputes;
(8) new text begin for a request to reduce or eliminate an assessment under section 270C.33, subdivision
4b, a statement of the taxpayer's grounds, along with a brief statement of the supporting
facts, for the assertion of reasonable cause for the failure to collect or withhold tax from
another individual or entity;
new text end
new text begin (9) new text end a summary statement that the taxpayer relies on for each exception; and
deleted text begin (9)deleted text end new text begin (10)new text end the taxpayer's signature or signature of the taxpayer's duly authorized agent.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessments made after June 30,
2021.
new text end
Sec. 7.
Minnesota Statutes 2018, section 289A.40, subdivision 1, is amended to read:
Subdivision 1.
Time limit; generally.
new text begin (a) new text end Unless otherwise provided in this chapter, a
claim for a refund of an overpayment of state tax must be filed within 3-1/2 years from the
date prescribed for filing the return, plus any extension of time granted for filing the return,
but only if filed within the extended time, or deleted text begin one year from the date of an order assessing
tax under section 270C.33 or an order determining an appeal under section 270C.35,
subdivision 8, or one year from the date of a return made by the commissioner under section
270C.33, subdivision 3, upon payment in full of the tax, penalties, and interest shown on
the order or return made by the commissionerdeleted text end new text begin two years from the time the tax was paidnew text end ,
whichever period expires later. deleted text begin Claims for refund, except for taxes under chapter 297A,
filed after the 3-1/2 year period but within the one-year period are limited to the amount of
the tax, penalties, and interest on the order or return made by the commissioner and to issues
determined by the order or return made by the commissioner.
deleted text end
deleted text begin
In the case of assessments under section 289A.38, subdivision 5 or 6, claims for refund
under chapter 297A filed after the 3-1/2 year period but within the one-year period are
limited to the amount of the tax, penalties, and interest on the order or return made by the
commissioner that are due for the period before the 3-1/2 year period.
deleted text end
new text begin
(b) For purposes of this subdivision, the amount of a refund is limited as follows:
new text end
new text begin
(1) if the claim was filed by the taxpayer within 3-1/2 years from the date prescribed for
filing the return, the refund shall not exceed the tax paid within the 3-1/2 year period
immediately preceding the filing of the claim, plus any extension of time granted for filing
the return, but only if the claim was filed within the extended time;
new text end
new text begin
(2) if the claim was not filed within 3-1/2 years from the date prescribed for filing the
return, the refund shall not exceed the tax paid during the two years immediately preceding
the filing of the claim; and
new text end
new text begin
(3) if no claim was filed, the refund shall not exceed the amount which would be
allowable under clause (1) or (2), if the claim was filed on the date the refund is allowed.
new text end
new text begin
(c) The prepayment of tax made by withholding of tax at the source or payment of
estimated tax before the due date is considered paid on the last day prescribed by law for
the payment of the tax by the taxpayer. A return filed before the due date is considered as
filed on the due date. An extended return filed before the extended due date is considered
as filed on the extended due date.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims for refund filed after June 30,
2021.
new text end
Sec. 8.
Minnesota Statutes 2018, section 289A.60, subdivision 1, is amended to read:
Subdivision 1.
Penalty for failure to pay tax.
(a) If a corporate franchise, fiduciary
income, mining company, estate, partnership, S corporation, or nonresident entertainer tax
is not paid within the time specified for payment, a penalty of six percent is added to the
unpaid tax, except that if a corporation or mining company meets the requirements of section
289A.19, subdivision 2, the penalty is not imposed.
(b) For the taxes listed in paragraph (a), in addition to the penalty in that paragraph,
whether imposed or not, if a return or amended return is filed after the due date, without
regard to extensions, and any tax reported as remaining due is not remitted with the return
or amended return, a penalty of five percent of the tax not paid is added to the tax. If the
commissioner issues an order assessing additional tax for a tax listed in paragraph (a), and
the tax is not paid within 60 days after the mailing of the order or, if appealed, within 60
days after final resolution of the appeal, a penalty of five percent of the unpaid tax is added
to the tax.
(c) If an individual income tax is not paid within the time specified for payment, a penalty
of four percent is added to the unpaid tax. There is a presumption of reasonable cause for
the late payment if the individual: (i) pays by the due date of the return at least 90 percent
of the amount of tax, after credits other than withholding and estimated payments, shown
owing on the return; (ii) files the return within six months after the due date; and (iii) pays
the remaining balance of the reported tax when the return is filed.
(d) If the commissioner issues an order assessing additional individual income tax, and
the tax is not paid within 60 days after the mailing of the order or, if appealed, within 60
days after final resolution of the appeal, a penalty of four percent of the unpaid tax is added
to the tax.
(e) If a withholding or sales or use tax is not paid within the time specified for payment,
a penalty must be added to the amount required to be shown as tax. The penalty is five
percent of the tax not paid on or before the date specified for payment of the tax if the failure
is for not more than 30 days, with an additional penalty of five percent of the amount of tax
remaining unpaid during each additional 30 days or fraction of 30 days during which the
failure continues, not exceeding 15 percent in the aggregate.
new text begin
(f) No penalty applies under this section if:
new text end
new text begin
(1) the total calculated penalty that would otherwise apply under paragraphs (a) to (e)
is less than $150; or
new text end
new text begin
(2) for an underpayment of individual income tax under chapter 290 or sales tax under
chapter 297A, the liability for tax on which the penalty is calculated is less than $1,000 and
the taxpayer timely filed any returns required to be filed during the prior three calendar
years and was not subject to a penalty under this section, determined without regard to the
provisions of this paragraph, for any taxes on returns due during that three-year period.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for penalties imposed after June 30,
2021.
new text end
Sec. 9.
Minnesota Statutes 2018, section 296A.03, subdivision 3, is amended to read:
Subd. 3.
new text begin Form of application; new text end license fee.
An application for a distributor's licensenew text begin
shall be made in the form and manner prescribed by the commissioner andnew text end must be
accompanied by an initial fee of $25. Once licensed, a distributor must remit a $25 fee
annually to maintain the license.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 10.
Minnesota Statutes 2018, section 296A.13, is amended to read:
296A.13 PERSONAL LIABILITY FOR TAX.
Liability for payment of taxes under this chapter includes a responsible person or entity
described in the personal liability provisions of section 270C.56deleted text begin .deleted text end new text begin , except "person" includes
but is not limited to directors and officers of corporations, governors and managers of a
limited liability company, or members of partnerships who, either individually or jointly
with others, have the control, supervision, or responsibility of filing returns and making
payment of the amount of tax imposed by this chapter.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 11.
Minnesota Statutes 2018, section 297E.02, subdivision 6, is amended to read:
Subd. 6.
Combined net receipts tax.
(a) In addition to the taxes imposed under
subdivision 1, a tax is imposed on the combined net receipts of the organization. As used
in this section, "combined net receipts" is the sum of the organization's gross receipts from
lawful gambling less gross receipts directly derived from the conduct of paper bingo, raffles,
and paddlewheels, as defined in section 297E.01, subdivision 8, and less the net prizes
actually paid, other than prizes actually paid for paper bingo, raffles, and paddlewheels, for
the fiscal year. The combined net receipts of an organization are subject to a tax computed
according to the following schedule:
| If the combined net receipts for the fiscal year are: |
The tax is: |
|||
| Not over $87,500 |
deleted text begin ninedeleted text end new text begin eightnew text end percent |
|||
| Over $87,500, but not over $122,500 |
deleted text begin $7,875deleted text end new text begin $7,000new text end plus deleted text begin 18deleted text end new text begin 16new text end percent of the amount over $87,500, but not over $122,500 |
|||
| Over $122,500, but not over $157,500 |
deleted text begin $14,175deleted text end new text begin $12,600new text end plus deleted text begin 27deleted text end new text begin 24new text end percent of the amount over $122,500, but not over $157,500 |
|||
| Over $157,500 |
deleted text begin $23,625deleted text end new text begin $21,000new text end plus deleted text begin 36deleted text end new text begin 32new text end percent of the amount over $157,500 |
deleted text begin
(b) On or before April 1, 2016, the commissioner shall estimate the total amount of
revenue, including interest and penalties, that will be collected for fiscal year 2016 from
taxes imposed under this chapter. If the amount estimated by the commissioner equals or
exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the rates
under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a notice
to that effect in the State Register and notify each taxpayer by June 1, 2016. If the rates
under this section apply, the combined net receipts of an organization are subject to a tax
computed according to the following schedule:
deleted text end
|
deleted text begin
If the combined net receipts for the fiscal year are: deleted text end |
deleted text begin
The tax is: deleted text end |
|||
|
deleted text begin
Not over $87,500 deleted text end |
deleted text begin
8.5 percent deleted text end |
|||
|
deleted text begin
Over $87,500, but not over $122,500 deleted text end |
deleted text begin
$7,438 plus 17 percent of the amount over $87,500, but not over $122,500 deleted text end |
|||
|
deleted text begin
Over $122,500, but not over $157,500 deleted text end |
deleted text begin
$13,388 plus 25.5 percent of the amount over $122,500, but not over $157,500 deleted text end |
|||
|
deleted text begin
Over $157,500 deleted text end |
deleted text begin
$22,313 plus 34 percent of the amount over $157,500 deleted text end |
deleted text begin (c)deleted text end new text begin (b)new text end Gross receipts derived from sports-themed tipboards are exempt from taxation
under this section. For purposes of this paragraph, a sports-themed tipboard means a
sports-themed tipboard as defined in section 349.12, subdivision 34, under which the winning
numbers are determined by the numerical outcome of a professional sporting event.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 12.
Minnesota Statutes 2018, section 297E.021, subdivision 2, is amended to read:
Subd. 2.
Determination of revenue increase.
By March 15 of each fiscal year, the
commissioner of management and budget, in consultation with the commissioner, shall
determine the estimated increase in revenues received from taxes imposed under this chapter
over deleted text begin the estimated revenues under the February 2012 state budget forecast for that fiscal
year. For fiscal years after fiscal year 2015, the commissioner of management and budget
shall use the February 2012 state budget forecast for fiscal year 2015 as thedeleted text end new text begin anew text end baselinenew text begin of
$26,500,000new text end . All calculations under this subdivision must be made net of estimated refunds
of the taxes required to be paid.
Sec. 13.
Minnesota Statutes 2018, section 298.17, is amended to read:
298.17 OCCUPATION TAXES TO BE APPORTIONEDnew text begin ; TRANSFERREDnew text end .
(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
companies, corporations, and associations, however or for whatever purpose organized,
engaged in the business of mining or producing iron ore or other ores, when collected shall
be apportioned and distributed in accordance with the Constitution of the state of Minnesota,
article X, section 3, in the manner following: 90 percent shall be deposited in the state
treasury and credited to the general fund of which four-ninths shall be used for the support
of elementary and secondary schools; and ten percent of the proceeds of the tax imposed
by this section shall be deposited in the state treasury and credited to the general fund for
the general support of the university.
(b) Of the money apportioned to the general fund by this sectionnew text begin , the following
appropriations must be madenew text end :
(1) there is annually appropriated and credited to the mining environmental and regulatory
account in the special revenue fund an amount equal to that which would have been generated
by a 2-1/2 cent tax imposed by section 298.24 on each taxable ton produced in the preceding
calendar year. Money in the mining environmental and regulatory account is appropriated
annually to the commissioner of natural resources to fund agency staff to work on
environmental issues and provide regulatory services for ferrous and nonferrous mining
operations in this state. Payment to the mining environmental and regulatory account shall
be made by July 1 annually. The commissioner of natural resources shall execute an
interagency agreement with the Pollution Control Agency to assist with the provision of
environmental regulatory services such as monitoring and permitting required for ferrous
and nonferrous mining operations;
(2) there is annually appropriated and credited to the Iron Range resources and
rehabilitation account in the special revenue fund an amount equal to that which would have
been generated by a 1.5 cent tax imposed by section 298.24 on each taxable ton produced
in the preceding calendar year, to be expended for the purposes of section 298.22new text begin . The
money appropriated shall be used (i) to provide environmental development grants to local
governments located within any county in region 3 as defined in governor's executive order
number 60, issued on June 12, 1970, which does not contain a municipality qualifying
pursuant to section 273.134, paragraph (b), or (ii) to provide economic development loans
or grants to businesses located within any such county, provided that the county board or
an advisory group appointed by the county board to provide recommendations on economic
development shall make recommendations to the commissioner of Iron Range resources
and rehabilitation regarding the loans. Of the money allocated to Koochiching County,
one-third must be paid to the Koochiching County Economic Development Commission.
Payment to the Iron Range resources and rehabilitation account shall be made by May 15
annuallynew text end ; and
(3) there is annually appropriated and credited to the Iron Range resources and
rehabilitation account in the special revenue fund for transfer to the Iron Range school
consolidation and cooperatively operated school account under section 298.28, subdivision
7a, an amount equal to that which would have been generated by a six cent tax imposed by
section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the
Iron Range resources and rehabilitation account shall be made by May 15 annually.
(c) deleted text begin The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to
provide environmental development grants to local governments located within any county
in region 3 as defined in governor's executive order number 60, issued on June 12, 1970,
which does not contain a municipality qualifying pursuant to section 273.134, paragraph
(b), or (ii) to provide economic development loans or grants to businesses located within
any such county, provided that the county board or an advisory group appointed by the
county board to provide recommendations on economic development shall make
recommendations to the commissioner of Iron Range resources and rehabilitation regarding
the loans. Payment to the Iron Range resources and rehabilitation account shall be made by
May 15 annuallydeleted text end new text begin After all appropriations are made pursuant to paragraph (b), any amount
remaining in the general fund, of the money credited to the general fund under paragraph
(a) in the current fiscal year, shall be transferred by the commissioner of management and
budget to the taconite economic development fund under section 298.227. Transfer to the
taconite economic development fund shall be made by July 15 annuallynew text end deleted text begin .
deleted text end
deleted text begin (d) Of the money allocated to Koochiching County, one-third must be paid to the
Koochiching County Economic Development Commissiondeleted text end new text begin . The maximum amount that
shall be transferred each year under this paragraph shall be $4,000,000. If there are
insufficient funds remaining in the general fund in any year after all appropriations are made
pursuant to paragraph (b), transfer of funds to the taconite economic development fund
pursuant to this paragraph shall not be madenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with distributions made in
2020 and thereafter.
new text end
Sec. 14.
Minnesota Statutes 2018, section 298.227, is amended to read:
298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9anew text begin ; and an amount equal
to each taconite producer's share of the amount transferred under section 298.17, paragraph
(c)new text end , shall be held by the commissioner of Iron Range resources and rehabilitation in a separate
taconite economic development fund for each taconite and direct reduced ore producer. new text begin The
amount of each taconite producer's share of the amount transferred under section 298.17,
paragraph (c), shall be equal to the amount of tax paid under section 298.01 in the current
year by that producer in proportion to the total amount of tax paid under section 298.01 in
the current year by all producers. new text end 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,
concurrent reclamation, plant and stationary mining equipment, facilities for the producer,
or for research and development in Minnesota on new mining, taconite, iron, or steel
production technology, but only if the producer provides a matching expenditure equal to
the amount of the distribution to be used for the same purpose. If a proposed expenditure
is not approved by the commissioner, after consultation with the advisory board, the funds
must be deposited in the taconite environmental protection fund under sections 298.222 to
298.225. If a taconite production facility is sold after operations at the facility had ceased,
any money remaining in the fund for the former producer may be released to the purchaser
of the facility on the terms otherwise applicable to the former producer under this section.
If a producer fails to provide matching funds for a proposed expenditure within six months
after the commissioner approves release of the funds, the funds may be released by the
commissioner for deposit in the taconite area environmental protection fund created in
section 298.223. Any portion of the fund which is not released by the commissioner within
one year of its deposit in the fund shall be distributed to the taconite environmental protection
fund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with distributions made in
2020 and thereafter.
new text end
Sec. 15.
Minnesota Statutes 2018, section 349.15, subdivision 1, is amended to read:
Subdivision 1.
Expenditure restrictions, requirements, and civil penalties.
(a) Gross
profits from lawful gambling may be expended only for lawful purposes or allowable
expenses as authorized by the membership of the conducting organization at a monthly
meeting of the organization's membership.
(b) For each 12-month period beginning July 1, a licensed organization will be evaluated
by the board to determine a rating based on the percentage of annual lawful purpose
expenditures when compared to available gross profits for the same period. The rating will
be used to determine the organization's profitability percent and is not a rating of the
organization's lawful gambling operation. An organization will be evaluated according to
the following criteria:
(1) an organization that expends deleted text begin 50deleted text end new text begin 70new text end percent or more of gross profits on lawful purposes
will receive a five-star rating;
(2) an organization that expends deleted text begin 40deleted text end new text begin 55new text end percent or more but less than deleted text begin 50deleted text end new text begin 70new text end percent of
gross profits on lawful purposes will receive a four-star rating;
(3) an organization that expends deleted text begin 30deleted text end new text begin 40new text end percent or more but less than deleted text begin 40deleted text end new text begin 55new text end percent of
gross profits on lawful purposes will receive a three-star rating;
(4) an organization that expends deleted text begin 20deleted text end new text begin 25new text end percent or more but less than deleted text begin 30deleted text end new text begin 40new text end percent of
gross profits on lawful purposes will receive a two-star rating; and
(5) an organization that expends less than 20 percent of gross profits on lawful purposes
will receive a one-star rating.
(c) An organization that fails to expend a minimum of deleted text begin 30deleted text end new text begin 40new text end percent annually of gross
profits on lawful purposes, or deleted text begin 20deleted text end new text begin 25new text end percent annually for organizations that conduct lawful
gambling in a location where the primary business is bingo, is automatically on probation
effective July 1 for a period of one year. The organization must increase its rating to the
required minimum or be subject to sanctions by the board. If an organization fails to meet
the minimum after a one-year probation, the board may suspend the organization's license
or impose a civil penalty as follows:
(1) in determining any suspension or penalty for a violation of this paragraph, the board
must consider any unique factors or extraordinary circumstances that caused the organization
to not meet the minimum rate of profitability. Unique factors or extraordinary circumstances
include, but are not limited to, the purchase of capital assets necessary to conduct lawful
gambling; road or other construction causing impaired access to the lawful gambling
premises; and flood, tornado, or other catastrophe that had a direct impact on the continuing
lawful gambling operation; and
(2) notwithstanding section 349.151, subdivision 4, paragraph (a), clause (10), the board
may impose a civil penalty under this subdivision up to $10,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 16.
Minnesota Statutes 2018, section 349.151, subdivision 4, is amended to read:
Subd. 4.
Powers and duties.
(a) The board has the following powers and duties:
(1) to regulate lawful gambling to ensure it is conducted in the public interest;
(2) to issue licenses to organizations and gambling managers, and to issue licenses and
renewals to distributors, distributor salespersons, manufacturers, and linked bingo game
providers;
(3) to collect and deposit fees due under this chapter;
(4) to receive reports required by this chapter and inspect all premises, records, books,
and other documents of organizations, distributors, manufacturers, and linked bingo game
providers to insure compliance with all applicable laws and rules;
(5) to make rules authorized by this chapter;
(6) to register gambling equipment and issue registration stamps;
(7) to provide by rule for the mandatory posting by organizations conducting lawful
gambling of rules of play and the odds and/or house percentage on each form of lawful
gambling;
(8) to report annually to the governor and legislature on its activities and on recommended
changes in the laws governing gamblingnew text begin , including an annual report that provides a tabulation
of the number of compliance reviews completed, the percentage of organizations reviewed,
an average of the number of months between reviews, the number, location, and organization
of site inspections, and the number of allegations awaiting investigation by the boardnew text end ;
(9) to report annually to the governor and legislature a financial summary for each
licensed organization identifying the gross receipts, prizes paid, allowable expenses, lawful
purpose expenditures including charitable contributions and all taxes and fees as per section
349.12, subdivision 25, paragraph (a), clauses (8) and (18), and the percentage of annual
gross profit used for lawful purposes;
(10) to impose civil penalties of not more than $1,000 per violation on organizations,
distributors, distributor salespersons, manufacturers, linked bingo game providers, and
gambling managers for violating or failing to comply with any provision of this chapter,
chapter 297E, or any rule or order of the board;
(11) to issue premises permits to organizations licensed to conduct lawful gambling;
(12) to delegate to the director the authority to issue or deny license and premises permit
applications and renewals under criteria established by the board;
(13) to delegate to the director the authority to approve or deny fund loss requests,
contribution of gambling funds to another licensed organization, and property expenditure
requests under criteria established by the board;
(14) to suspend or revoke licenses and premises permits of organizations, distributors,
distributor salespersons, manufacturers, linked bingo game providers, or gambling managers
as provided in this chapter;
(15) to approve or deny requests from licensees for:
(i) waivers from fee requirements as provided in section 349.16, subdivision 6; and
(ii) variances from Gambling Control Board rules under section 14.055; and
(16) to register employees of organizations licensed to conduct lawful gambling;
(17) to require fingerprints from persons determined by board rule to be subject to
fingerprinting;
(18) to delegate to a compliance review group of the board the authority to investigate
alleged violations, issue consent orders, and initiate contested cases on behalf of the board;
(19) to order organizations, distributors, distributor salespersons, manufacturers, linked
bingo game providers, and gambling managers to take corrective actions; and
(20) to take all necessary steps to ensure the integrity of and public confidence in lawful
gambling.
(b) The board, or director if authorized to act on behalf of the board, may by citation
assess any organization, distributor, distributor salesperson, manufacturer, linked bingo
game provider, or gambling manager a civil penalty of not more than $1,000 per violation
for a failure to comply with any provision of this chapter, chapter 297E, or any rule adopted
or order issued by the board. Any organization, distributor, distributor salesperson, gambling
manager, linked bingo game provider, or manufacturer assessed a civil penalty under this
paragraph may request a hearing before the board. Appeals of citations imposing a civil
penalty are not subject to the provisions of the Administrative Procedure Act.
(c) All penalties received by the board must be deposited in the general fund.
(d) All fees imposed by the board under sections 349.16 to 349.167 must be deposited
in the state treasury and credited to a lawful gambling regulation account in the special
revenue fund. Receipts in this account are available for the operations of the board up to
the amount authorized in biennial appropriations from the legislature.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 17.
Minnesota Statutes 2018, section 462A.38, is amended to read:
462A.38 WORKFORCE AND AFFORDABLE HOMEOWNERSHIP
DEVELOPMENT PROGRAM.
Subdivision 1.
Establishment.
A workforce and affordable homeownership development
program is established to award homeownership development grants new text begin and loans new text end to new text begin cities,
tribal governments, new text end nonprofit organizations, cooperatives created under chapter 308A or
308B, and community land trusts created for the purposes outlined in section 462A.31,
subdivision 1, for development of workforce and affordable homeownership projects. The
purpose of the program is to increase the supply of workforce and affordable, owner-occupied
multifamily or single-family housing throughout Minnesota.
Subd. 2.
Use of funds.
(a) Grant funds new text begin and loans new text end awarded under this program may be
used for:
(1) development costs;
(2) rehabilitation;
(3) land development; and
(4) residential housing, including storm shelters and related community facilities.
(b) A project funded through deleted text begin the grantdeleted text end new text begin thisnew text end program shall serve households that meet
the income limits as provided in section 462A.33, subdivision 5, unless a project is intended
for the purpose outlined in section 462A.02, subdivision 6.
Subd. 3.
Application.
The commissioner shall develop forms and procedures for soliciting
and reviewing applications for grants new text begin and loans new text end under this section. The commissioner shall
consult with interested stakeholders when developing the guidelines and procedures for the
program. In making grantsnew text begin and loansnew text end , the commissioner shall establish semiannual application
deadlines in which grantsnew text begin and loansnew text end will be authorized from all or part of the available
appropriations.
Subd. 4.
Awarding grantsnew text begin and loansnew text end .
Among comparable proposals, preference must
be given to proposals that include contributions from nonstate resources for the greatest
portion of the total development cost.
Subd. 5.
Statewide program.
The agency shall attempt to make grantsnew text begin and loansnew text end in
approximately equal amounts to applicants outside and within the metropolitan areanew text begin , as
defined under section 473.121, subdivision 2new text end .
Subd. 6.
Report.
Beginning January 15, deleted text begin 2018deleted text end new text begin 2020new text end , the commissioner must annually
submit a report to the chairs and ranking minority members of the senate and house of
representatives committees having jurisdiction over housing and workforce development
specifying the projects that received grantsnew text begin and loansnew text end under this section and the specific
purposes for which the grantnew text begin or loannew text end funds were used.
new text begin Subd. 7. new text end
new text begin Workforce and affordable homeownership development account. new text end
new text begin
A
workforce and affordable homeownership development account is established in the housing
development fund. Money in the account, including interest, is appropriated to the
commissioner of the Housing Finance Agency for the purposes of this section. The amount
appropriated under this section must supplement traditional sources of funding for this
purpose and must not be used as a substitute or to pay debt service on bonds.
new text end
new text begin Subd. 8. new text end
new text begin Deposits; determination of funding amount. new text end
new text begin
(a) In fiscal years 2020 to 2030,
the commissioner of revenue shall annually deposit, by September 15, an amount equal to
the increment determined under paragraph (b) into the workforce and affordable
homeownership account in the housing development fund.
new text end
new text begin
(b) By September 1, 2019, and each year thereafter through 2029, the commissioner of
revenue must determine the total amount of the proceeds of the mortgage registry tax imposed
under section 287.035 and the deed tax imposed under section 287.21 that was collected
during the fiscal year ending in that calendar year and must determine the increment that
exceeds the amount collected in the previous fiscal year. The increment calculated under
this paragraph must not be less than $0, but must not exceed $4,000,000.
new text end
new text begin
(c) All loan repayments received under this section are to be deposited into the workforce
and affordable homeownership development account in the housing development fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 18. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2018, sections 296A.03, subdivision 5; 296A.04, subdivision 2;
296A.05, subdivision 2; and 349.213, subdivision 3,
new text end
new text begin
are repealed.
new text end
new text begin
(b)
new text end
new text begin
Minnesota Rules, part 8125.0410, subpart 1,
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 July 1, 2019.
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ARTICLE 10
PARTNERSHIP AUDITS
Section 1.
Minnesota Statutes 2018, section 270C.445, subdivision 6, is amended to read:
Subd. 6.
Enforcement; administrative order; penalties; cease and desist.
(a) The
commissioner may impose an administrative penalty of not more than $1,000 per violation
of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed
for any conduct for which a tax preparer penalty is imposed under section 289A.60,
subdivision 13. The commissioner may terminate a tax preparer's authority to transmit
returns electronically to the state, if the commissioner determines the tax preparer engaged
in a pattern and practice of violating this section. Imposition of a penalty under this paragraph
is subject to the contested case procedure under chapter 14. The commissioner shall collect
the penalty in the same manner as the income tax. There is no right to make a claim for
refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed
under this paragraph are public data.
(b) In addition to the penalty under paragraph (a), if the commissioner determines that
a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may
issue an administrative order to the tax preparer requiring the tax preparer to cease and
desist from committing the violation. The administrative order may include an administrative
penalty provided in paragraph (a).
(c) If the commissioner issues an administrative order under paragraph (b), the
commissioner must send the order to the tax preparer addressed to the last known address
of the tax preparer.
(d) A cease and desist order under paragraph (b) must:
(1) describe the act, conduct, or practice committed and include a reference to the law
that the act, conduct, or practice violates; and
(2) provide notice that the tax preparer may request a hearing as provided in this
subdivision.
(e) Within 30 days after the commissioner issues an administrative order under paragraph
(b), the tax preparer may request a hearing to review the commissioner's action. The request
for hearing must be made in writing and must be served on the commissioner at the address
specified in the order. The hearing request must specifically state the reasons for seeking
review of the order. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed.
(f) If a tax preparer does not timely request a hearing regarding an administrative order
issued under paragraph (b), the order becomes a final order of the commissioner and is not
subject to review by any court or agency.
(g) If a tax preparer timely requests a hearing regarding an administrative order issued
under paragraph (b), the hearing must be commenced within ten days after the commissioner
receives the request for a hearing.
(h) A hearing timely requested under paragraph (e) is subject to the contested case
procedure under chapter 14, as modified by this subdivision. The administrative law judge
must issue a report containing findings of fact, conclusions of law, and a recommended
order within ten days after the completion of the hearing, the receipt of late-filed exhibits,
or the submission of written arguments, whichever is later.
(i) Within five days of the date of the administrative law judge's report issued under
paragraph (h), any party aggrieved by the administrative law judge's report may submit
written exceptions and arguments to the commissioner. Within 15 days after receiving the
administrative law judge's report, the commissioner must issue an order vacating, modifying,
or making final the administrative order.
(j) The commissioner and the tax preparer requesting a hearing may by agreement
lengthen any time periods prescribed in paragraphs (g) to (i).
(k) An administrative order issued under paragraph (b) is in effect until it is modified
or vacated by the commissioner or an appellate court. The administrative hearing provided
by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute
the exclusive remedy for a tax preparer aggrieved by the order.
(l) The commissioner may impose an administrative penalty, in addition to the penalty
under paragraph (a), up to $5,000 per violation of a cease and desist order issued under
paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case
procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under
this paragraph, the tax preparer assessed the penalty may request a hearing to review the
penalty order. The request for hearing must be made in writing and must be served on the
commissioner at the address specified in the order. The hearing request must specifically
state the reasons for seeking review of the order. The cease and desist order issued under
paragraph (b) is not subject to review in a proceeding to challenge the penalty order under
this paragraph. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed. If the tax preparer does not
timely request a hearing, the penalty order becomes a final order of the commissioner and
is not subject to review by any court or agency. A penalty imposed by the commissioner
under this paragraph may be collected and enforced by the commissioner as an income tax
liability. There is no right to make a claim for refund under section 289A.50 of the penalty
imposed under this paragraph. A penalty imposed under this paragraph is public data.
(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the
commissioner may terminate the tax preparer's authority to transmit returns electronically
to the state. Termination under this paragraph is public data.
(n) A cease and desist order issued under paragraph (b) is public data when it is a final
order.
(o) Notwithstanding any other law, the commissioner may impose a penalty or take other
action under this subdivision against a tax preparer, with respect to a return, within the
period to assess tax on that return as provided by deleted text begin sectiondeleted text end new text begin sectionsnew text end 289A.38new text begin to 289A.384new text end .
(p) Notwithstanding any other law, the imposition of a penalty or any other action against
a tax preparer under this subdivision, other than with respect to a return, must be taken by
the commissioner within five years of the violation of statute.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
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Sec. 2.
Minnesota Statutes 2018, section 289A.31, subdivision 1, is amended to read:
Subdivision 1.
Individual income, fiduciary income, mining company, corporate
franchise, and entertainment taxes.
(a) Individual income, fiduciary income, mining
company, and corporate franchise taxes, and interest and penalties, must be paid by the
taxpayer upon whom the tax is imposed, except in the following cases:
(1) the tax due from a decedent for that part of the taxable year in which the decedent
died during which the decedent was alive and the taxes, interest, and penalty due for the
prior years must be paid by the decedent's personal representative, if any. If there is no
personal representative, the taxes, interest, and penalty must be paid by the transferees, as
defined in section 270C.58, subdivision 3, to the extent they receive property from the
decedent;
(2) the tax due from an infant or other incompetent person must be paid by the person's
guardian or other person authorized or permitted by law to act for the person;
(3) the tax due from the estate of a decedent must be paid by the estate's personal
representative;
(4) the tax due from a trust, including those within the definition of a corporation, as
defined in section 290.01, subdivision 4, must be paid by a trustee; and
(5) the tax due from a taxpayer whose business or property is in charge of a receiver,
trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge
of the business or property so far as the tax is due to the income from the business or property.
(b) Entertainment taxes are the joint and several liability of the entertainer and the
entertainment entity. The payor is liable to the state for the payment of the tax required to
be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the
entertainer for the amount of the payment.
(c) The taxes imposed under sections 289A.35new text begin , paragraph (b), 289A.383, subdivision
3,new text end and 290.0922 on partnerships are the joint and several liability of the partnership and the
general partners.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
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Sec. 3.
Minnesota Statutes 2018, section 289A.37, subdivision 2, is amended to read:
Subd. 2.
Erroneous refunds.
(a) Except as provided in paragraph (b), an erroneous
refund occurs when the commissioner issues a payment to a person that exceeds the amount
the person is entitled to receive under law. An erroneous refund is considered an
underpayment of tax on the date issued.
(b) To the extent that the amount paid does not exceed the amount claimed by the
taxpayer, an erroneous refund does not include the following:
(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a
taxpayer, including but not limited to refunds of claims made under section 290.06,
subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
290.0681; or 290.0692; or chapter 290A; or
(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
taxpayer.
(c) The commissioner may make an assessment to recover an erroneous refund at any
time within two years from the issuance of the erroneous refund. If all or part of the erroneous
refund was induced by fraud or misrepresentation of a material fact, the assessment may
be made at any time.
(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
conducted under deleted text begin sectiondeleted text end new text begin sectionsnew text end 289A.38new text begin to 289A.384new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
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Sec. 4.
Minnesota Statutes 2018, section 289A.38, subdivision 10, is amended to read:
Subd. 10.
Incorrect determination of federal adjusted gross income.
Notwithstanding
any other provision of this chapter, if a taxpayer whose net income is determined under
section 290.01, subdivision 19, omits from income an amount that will under the Internal
Revenue Code extend the statute of limitations for the assessment of federal income taxes,
or otherwise incorrectly determines the taxpayer's federal adjusted gross income resulting
in adjustments by the Internal Revenue Service, then the period of assessment and
determination of tax will be that under the Internal Revenue Code. When a change is made
to federal income during the extended time provided under this subdivision, the provisions
under deleted text begin subdivisions 7 to 9deleted text end new text begin sections 289A.381 to 289A.384new text end regarding additional extensions
apply.
new text begin EFFECTIVE DATE. new text end
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This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
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Sec. 5.
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[289A.381] DEFINITIONS; PARTNERSHIPS; FEDERAL ADJUSTMENTS.
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new text begin Subdivision 1. new text end
new text begin Definitions relating to federal adjustments. new text end
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Unless otherwise specified,
the definitions in this section apply for the purposes of sections 289A.381 to 289A.385.
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new text begin Subd. 2. new text end
new text begin Administrative adjustment request. new text end
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"Administrative adjustment request"
means an administrative adjustment request filed by a partnership under section 6227 of
the Internal Revenue Code.
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new text begin Subd. 3. new text end
new text begin Audited partnership. new text end
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"Audited partnership" means a partnership subject to a
federal adjustment resulting from a partnership-level audit.
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new text begin Subd. 4. new text end
new text begin Corporate partner. new text end
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"Corporate partner" means a partner that is subject to tax
under section 290.02.
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new text begin Subd. 5. new text end
new text begin Direct partner. new text end
new text begin
"Direct partner" means a partner that holds an immediate legal
ownership interest in a partnership or pass-through entity.
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new text begin Subd. 6. new text end
new text begin Exempt partner. new text end
new text begin
"Exempt partner" means a partner that is exempt from taxes
on its net income under section 290.05, subdivision 1.
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new text begin Subd. 7. new text end
new text begin Federal adjustment. new text end
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"Federal adjustment" means any change in an amount
calculated under the Internal Revenue Code, whether to income, gross estate, a credit, an
item of preference, or any other item that is used by a taxpayer to compute a tax administered
under this chapter for the reviewed year whether that change results from action by the
Internal Revenue Service or other competent authority, including a partnership-level audit,
or the filing of an amended federal return, federal refund claim, or an administrative
adjustment request by the taxpayer.
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new text begin Subd. 8. new text end
new text begin Federal adjustments report. new text end
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"Federal adjustments report" includes a method
or form prescribed by the commissioner for use by a taxpayer to report federal adjustments,
including an amended Minnesota tax return or a uniform multistate report.
new text end
new text begin Subd. 9. new text end
new text begin Federal partnership representative. new text end
new text begin
"Federal partnership representative"
means the person the partnership designates for the taxable year as the partnership's
representative, or the person the Internal Revenue Service has appointed to act as the
partnership representative, pursuant to section 6223(a) of the Internal Revenue Code.
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new text begin Subd. 10. new text end
new text begin Final determination date. new text end
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"Final determination date" means:
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(1) for a federal adjustment arising from an audit by the Internal Revenue Service or
other competent authority, the first day on which no federal adjustment arising from that
audit remains to be finally determined, whether by agreement, or, if appealed or contested,
by a final decision with respect to which all rights of appeal have been waived or exhausted;
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(2) for a federal adjustment arising from the filing of an amended federal return, a federal
refund claim, or the filing by a partnership of an administrative adjustment request, the day
which the amended return, refund claim, or administrative adjustment request was filed; or
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(3) for agreements required to be signed by the Internal Revenue Service and the taxpayer,
the date on which the last party signed the agreement.
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new text begin Subd. 11. new text end
new text begin Final federal adjustment. new text end
new text begin
"Final federal adjustment" means a federal
adjustment for which the final determination date for that federal adjustment has passed.
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new text begin Subd. 12. new text end
new text begin Indirect partner. new text end
new text begin
"Indirect partner" means either:
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(1) a partner in a partnership or pass-through entity that itself holds an immediate legal
ownership interest in another partnership or pass-through entity; or
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(2) a partner in a partnership or pass-through entity that holds an indirect interest in
another partnership or pass-through entity through another indirect partner.
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new text begin Subd. 13. new text end
new text begin Partner. new text end
new text begin
"Partner" means a person that holds an interest directly or indirectly
in a partnership or other pass-through entity.
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new text begin Subd. 14. new text end
new text begin Partnership. new text end
new text begin
The term "partnership" has the meaning provided under section
7701(a)(2) of the Internal Revenue Code.
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new text begin Subd. 15. new text end
new text begin Partnership-level audit. new text end
new text begin
"Partnership-level audit" means an examination by
the Internal Revenue Service at the partnership level pursuant to subtitle F, chapter 63,
subchapter C, of the Internal Revenue Code, which results in federal adjustments and
adjustments to partnership-related items.
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new text begin Subd. 16. new text end
new text begin Pass-through entity. new text end
new text begin
"Pass-through entity" means an entity, other than a
partnership, that is not subject to the tax imposed under section 290.02. The term pass-through
entity includes but is not limited to S corporations, estates, and trusts other than grantor
trusts.
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new text begin Subd. 17. new text end
new text begin Resident partner. new text end
new text begin
"Resident partner" means an individual direct partner or
individual indirect partner who is a resident of Minnesota under section 290.01, subdivision
7 for the relevant tax period.
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new text begin Subd. 18. new text end
new text begin Reviewed year. new text end
new text begin
"Reviewed year" means the taxable year of a partnership that
is subject to a partnership-level audit from which federal adjustments arise.
new text end
new text begin Subd. 19. new text end
new text begin Tiered partner. new text end
new text begin
"Tiered partner" means any partner that is a partnership or
pass-through entity.
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new text begin Subd. 20. new text end
new text begin Unrelated business taxable income. new text end
new text begin
"Unrelated business taxable income"
has the same meaning as defined in section 512 of the Internal Revenue Code.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
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Sec. 6.
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[289A.382] REPORTING FEDERAL ADJUSTMENTS; GENERAL RULE.
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(a) Within 180 days of a final determination date, a taxpayer must file a federal
adjustments report with the commissioner reporting all final federal adjustments by the
Internal Revenue Service or other competent authority.
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(b) Within 180 days of a final determination date, a taxpayer must file a federal
adjustments report with the commissioner reporting any federal adjustments reported by
the taxpayer to the Internal Revenue Service, including but not limited to:
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(1) federal refund claims;
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(2) a change reported on a timely filed amended federal income tax return; and
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(3) a change reported on an amended return filed pursuant to section 6225(c) of the
Internal Revenue Code.
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new text begin
(c) In the case of a final federal adjustment arising from a partnership-level audit or an
administrative adjustment request filed by a partnership under section 6227 of the Internal
Revenue Code, a taxpayer must report adjustments as provided for under section 289A.383,
and not this section.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
new text end
Sec. 7.
new text begin
[289A.383] REPORTING AND PAYMENT REQUIREMENTS.
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new text begin Subdivision 1. new text end
new text begin State partnership representative. new text end
new text begin
(a) With respect to an action required
or permitted to be taken by a partnership under this section, or in a proceeding under section
270C.35 or 271.06, the state partnership representative for the reviewed year shall have the
sole authority to act on behalf of the partnership, and its direct partners and indirect partners
shall be bound by those actions.
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new text begin
(b) The state partnership representative for the reviewed year is the partnership's federal
partnership representative unless the partnership, in a form and manner prescribed by the
commissioner, designates another person as its state partnership representative.
new text end
new text begin Subd. 2. new text end
new text begin
Reporting and payment requirements for partnerships and tiered
partners.
new text end
new text begin
(a) Unless an audited partnership makes the election in subdivision 3, then, for
all final federal adjustments the audited partnership must comply with paragraph (b) and
each direct partner of the audited partnership, other than a tiered partner, must comply with
paragraph (c).
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new text begin
(b) No later than 90 days after the final determination date, the audited partnership must:
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new text begin
(1) file a completed federal adjustments report, including all partner-level information
required under section 289A.12, subdivision 3, with the commissioner;
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(2) notify each of its direct partners of their distributive share of the adjustments;
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new text begin
(3) file an amended composite report for all direct partners who were included in a
composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the
additional amount that would have been due had the federal adjustments been reported
properly as required; and
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new text begin
(4) file amended withholding reports for all direct partners who were or should have
been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed
year, and pay the additional amount that would have been due had the federal adjustments
been reported properly as required.
new text end
new text begin
(c) No later than 180 days after the final determination date, each direct partner, other
than a tiered partner, that is subject to a tax administered under this chapter, other than the
sales tax, must:
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new text begin
(1) file a federal adjustments report reporting their distributive share of the adjustments
reported to them under paragraph (b), clause (2); and
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new text begin
(2) pay any additional amount of tax due as if the final federal adjustment had been
properly reported, plus any penalty and interest due under this chapter, and less any credit
for related amounts paid or withheld and remitted on behalf of the direct partner under
paragraph (b), clauses (3) and (4).
new text end
new text begin Subd. 3. new text end
new text begin Election; partnership or tiered partners pay. new text end
new text begin
(a) An audited partnership may
make an election under this subdivision to pay its assessment at the entity level. If an audited
partnership makes an election to pay its assessment at the entity level it must:
new text end
new text begin
(1) no later than 90 days after the final determination date, file a completed federal
adjustments report, including the residency information for all individual direct partners,
and information pertaining to all other direct partners as prescribed by the commissioner,
and notify the commissioner that it is making the election under this subdivision; and
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new text begin
(2) no later than 180 days after the final determination date, pay an amount, determined
as follows, in lieu of taxes on partners:
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(i) exclude from final federal adjustments the distributive share of these adjustments
made to a direct exempt partner that is not unrelated business taxable income;
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new text begin
(ii) exclude from final federal adjustments the distributive share of these adjustments
made to a direct partner that has filed a federal adjustments report and paid the applicable
tax, as required under subdivision 2, for the distributive share of adjustments reported on a
federal return under section 6225(c) of the Internal Revenue Code;
new text end
new text begin
(iii) allocate and apportion at the partnership level using sections 290.17 to 290.20 the
total distributive share of the remaining final federal adjustments for the reviewed year
attributed to direct corporate partners and direct exempt partners, multiply the total by the
highest tax rate in section 290.06, subdivision 1, for the reviewed year, and calculate interest
and penalties as applicable under this chapter;
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new text begin
(iv) allocate at the partnership level using section 290.17, subdivision 1, the total
distributive share of all final federal adjustments attributable to resident direct partners for
the reviewed year, multiply the total by the highest tax rate in section 290.06, subdivision
2c, for the reviewed year, and calculate interest and penalties as applicable under this chapter;
new text end
new text begin
(v) allocate and apportion at the partnership level using sections 290.17 to 290.20 the
total distributive share of the remaining final federal adjustments attributable to nonresident
individual direct partners and direct partners who are an estate or a trust for the reviewed
year, and multiply the total by the highest tax rate in section 290.06, subdivision 2c, for the
reviewed year, and calculate interest and penalties as applicable under this chapter;
new text end
new text begin
(vi) for the total distributive share of the remaining final federal adjustments reported
to tiered partners:
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new text begin
(A) determine the amount of the adjustments which are of a type that would be subject
to sourcing under section 290.17 for a nonresident partner, and then determine the portion
of this amount which would be sourced to this state;
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new text begin
(B) determine the amount of the adjustments which are of a type which are fully sourced
to the taxpayer's state of residency under section 290.17, subdivision 2;
new text end
new text begin
(C) determine the portion of the amount determined in subitem (B) that can be established,
as determined by the commissioner, to be properly allocable to nonresident indirect partners
or other partners not subject to tax on the adjustments; and
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new text begin
(D) multiply the total of the amounts determined in subitems (A) and (B) reduced by
the amount determined in subitem (C) by the highest tax rate in section 290.06, subdivision
2c, for the reviewed year, and calculate interest and penalties as applicable under this chapter;
and
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new text begin
(vii) add the amounts determined in items (iii) to (vi), and pay all applicable taxes,
penalties, and interest to the commissioner.
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new text begin
(b) An audited partnership may not make an election under this subdivision to report:
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new text begin
(1) a federal adjustment that results in unitary business income to a corporate partner
required to file as a member of a combined report under section 290.17, subdivision 4; or
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new text begin
(2) any final federal adjustments resulting from an administrative adjustment request.
new text end
new text begin
(c) An audited partnership not otherwise subject to any reporting or payment obligation
to this state may not make an election under this subdivision.
new text end
new text begin Subd. 4. new text end
new text begin Tiered partners and indirect partners. new text end
new text begin
The direct and indirect partners of an
audited partnership that are tiered partners, and all of the partners of those tiered partners
that are subject to tax under chapter 290 are subject to the reporting and payment
requirements contained in subdivision 2 and the tiered partners are entitled to make the
elections provided in subdivisions 3 and 7. The tiered partners or their partners shall make
required reports and payments no later than 90 days after the time for filing and furnishing
of statements to tiered partners and their partners as established under section 6226 of the
Internal Revenue Code. If the commissioner determines by a preponderance of the evidence
that the primary purpose of a tiered partnership was that it was structured to allow an indirect
individual partner who is a Minnesota resident to avoid paying Minnesota income tax,
resulting from a partnership-level audit, as a Minnesota resident, the partnership is not
permitted to make the election under subdivision 3 and is instead subject to the reporting
and payment requirements under subdivision 2. The commissioner must notify the partnership
when this determination is made. The date of the notice issued by the commissioner shall
be deemed to be the final determination date for purposes of determining the due date for
the reporting provisions in subdivision 2.
new text end
new text begin Subd. 5. new text end
new text begin
Effects of election by partnership or tiered partner and payment of amount
due.
new text end
new text begin
(a) Unless the commissioner determines otherwise, the election under subdivision 3
is irrevocable.
new text end
new text begin
(b) If an audited partnership or tiered partner properly reports and pays an amount
determined in subdivision 3 or 7, the amount will be treated as paid in lieu of taxes owed
by the partnership's direct partners and indirect partners, to the extent applicable, on the
same final federal adjustments. The direct partners or indirect partners of the partnership
may not take any deduction or credit for this amount or claim a refund of the amount in this
state.
new text end
new text begin
(c) Nothing in this subdivision precludes resident direct partners from claiming a credit
against taxes paid under section 290.06, on any amounts paid by the audited partnership or
tiered partners on the resident partner's behalf to another state or local tax jurisdiction.
new text end
new text begin Subd. 6. new text end
new text begin Failure of partnership or tiered partner to report or pay. new text end
new text begin
Nothing in this
section prevents the commissioner from assessing direct partners or indirect partners for
taxes they owe, using the best information available, in the event that, for any reason, a
partnership or tiered partner fails to timely make any report or payment required by this
section.
new text end
new text begin Subd. 7. new text end
new text begin Modified reporting and payment method. new text end
new text begin
An audited partnership or tiered
partner may enter into an agreement with the commissioner to utilize an alternative reporting
and payment method, including applicable time requirements or any other provision of this
section. The audited partnership or tiered partner must demonstrate that the requested method
will reasonably provide for the reporting and payment of taxes, penalties, and interest due
under the provisions of this section. Application for approval of an alternative reporting
and payment method must be made by the audited partnership or tiered partner within the
time for making an election as provided in subdivision 3 or 4, as appropriate.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
new text end
Sec. 8.
new text begin
[289A.384] ASSESSMENT OF TAX, INTEREST, PENALTIES, AND
ADDITIONAL AMOUNTS.
new text end
new text begin Subdivision 1. new text end
new text begin Assessment of additional tax, interest, and penalties. new text end
new text begin
The commissioner
may assess, in accordance with subdivisions 2 and 3, additional tax, interest, and penalties
following a final federal adjustment:
new text end
new text begin
(1) arising from an audit by the Internal Revenue Service, including a partnership-level
audit;
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new text begin
(2) reported by the taxpayer on an amended federal tax return; or
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new text begin
(3) as part of an administrative adjustment request on or before the dates provided in
this section.
new text end
new text begin Subd. 2. new text end
new text begin Timely and untimely reported federal adjustments. new text end
new text begin
If a taxpayer files a
federal adjustments report, within or after the periods prescribed in section 289A.382 or
289A.383, the commissioner may assess additional Minnesota amounts related to the federal
adjustments including in-lieu-of amounts, taxes, interest, and penalties at the later of:
new text end
new text begin
(1) the expiration of the period of limitations in section 289A.38; or
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new text begin
(2) the expiration of the one-year period following the date of the filing with the
commissioner of the federal adjustments report.
new text end
new text begin Subd. 3. new text end
new text begin Unreported reported federal adjustments. new text end
new text begin
If the taxpayer fails to file a federal
adjustments report, the commissioner may assess additional amounts related to the federal
adjustments including in-lieu-of amounts, taxes, penalties, and interest, at the later of:
new text end
new text begin
(1) the expiration of the period of limitations in section 289A.38; or
new text end
new text begin
(2) the expiration of the six-year period following the final determination date.
new text end
new text begin Subd. 4. new text end
new text begin Estimated tax payments during the course of a federal audit. new text end
new text begin
A taxpayer
may make estimated payments to the commissioner of the tax expected to result from a
pending audit by the Internal Revenue Service. The taxpayer may make estimated payments
prior to the due date of the federal adjustments report without the taxpayer having to file
the report with the commissioner. The commissioner must credit the estimated tax payments
against any tax liability of the taxpayer ultimately found to be due to the commissioner.
The estimated payments limit the accrual of further statutory interest on that amount. If the
estimated tax payments exceed the final tax liability and statutory interest ultimately
determined to be due, the taxpayer is entitled to a refund or credit for the excess, provided
the taxpayer files a federal adjustments report or claim for refund or credit of tax pursuant
to section 289A.385.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
new text end
Sec. 9.
new text begin
[289A.385] CLAIMS FOR REFUND OR CREDITS OF STATE TAX
ARISING FROM FINAL FEDERAL ADJUSTMENTS MADE BY THE INTERNAL
REVENUE SERVICE.
new text end
new text begin
Notwithstanding the general period of limitations on claims for refund in section 289A.40,
taxpayers subject to the reporting requirements of sections 289A.382 and 289A.383 may
file claims for refund related to federal adjustments made by the Internal Revenue Service
on or before the last day for the assessment of tax under section 289A.384.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
new text end
Sec. 10.
Minnesota Statutes 2018, section 289A.42, is amended to read:
289A.42 CONSENT TO EXTEND STATUTE.
Subdivision 1.
Extension agreement.
If before the expiration of time prescribed in
sections 289A.38new text begin to 289A.384new text end and 289A.40 for the assessment of tax or the filing of a claim
for refund, both the commissioner and the taxpayer have consented in writing to the
assessment or filing of a claim for refund after that time, the tax may be assessed or the
claim for refund filed at any time before the expiration of the agreed-upon period. The
period may be extended by later agreements in writing before the expiration of the period
previously agreed upon. The taxpayer and the commissioner may also agree to extend the
period for collection of the tax.new text begin The time periods provided in sections 289A.382 and
289A.383 may be extended automatically, upon written notice to the commissioner, by 60
days for an audited partnership or tiered partner which has 10,000 or more direct partners.
new text end
Subd. 2.
Federal extensions.
When a taxpayer consents to an extension of time for the
assessment of federal withholding or income taxes, the period in which the commissioner
may recompute the tax is also extended, notwithstanding any period of limitations to the
contrary, deleted text begin as follows:
deleted text end
deleted text begin (1)deleted text end for the deleted text begin periodsdeleted text end new text begin adjustmentsnew text end provided in section deleted text begin 289A.38, subdivisions 8 and 9;deleted text end new text begin
289A.384, subdivisions 2 and 3.
new text end
deleted text begin
(2) for six months following the expiration of the extended federal period of limitations
when no change is made by the federal authority. If no change is made by the federal
authority, and, but for this subdivision, the commissioner's time period to adjust the tax has
expired, and if the commissioner has completed a field audit of the taxpayer, no additional
changes resulting in additional tax due or a refund may be made. For purposes of this
subdivision, "field audit" has the meaning given it in section 289A.38, subdivision 9.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
new text end
Sec. 11.
Minnesota Statutes 2018, section 289A.60, subdivision 24, is amended to read:
Subd. 24.
Penalty for failure to notify of federal change.
If a person fails to report to
the commissioner a change or correction of the person's federal return in the manner and
time prescribed in deleted text begin section 289A.38, subdivision 7deleted text end new text begin sections 289A.382 and 289A.383new text end , there
must be added to the tax an amount equal to ten percent of the amount of any underpayment
of Minnesota tax attributable to the federal change.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
new text end
Sec. 12.
Minnesota Statutes 2018, section 290.31, subdivision 1, is amended to read:
Subdivision 1.
Partners, not partnership, subject to tax.
Except as provided under
deleted text begin sectiondeleted text end new text begin sectionsnew text end 289A.35, paragraph (b),new text begin and 289A.383, subdivision 3,new text end a partnership as such
shall not be subject to the income tax imposed by this chapter, but is subject to the tax
imposed under section 290.0922. Persons carrying on business as partners shall be liable
for income tax only in their separate or individual capacities.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
new text end
Sec. 13.
Minnesota Statutes 2018, section 297F.17, subdivision 6, is amended to read:
Subd. 6.
Time limit for bad debt refund.
Claims for refund must be filed with the
commissioner during the one-year period beginning with the timely filing of the taxpayer's
federal income tax return containing the bad debt deduction that is being claimed. Claimants
under this subdivision are subject to the notice requirements of deleted text begin section 289A.38, subdivision
7deleted text end new text begin sections 289A.382 and 289A.383new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
new text end
Sec. 14.
Minnesota Statutes 2018, section 297G.16, subdivision 7, is amended to read:
Subd. 7.
Time limit for a bad debt deduction.
Claims for refund must be filed with
the commissioner within one year of the filing of the taxpayer's income tax return containing
the bad debt deduction that is being claimed. Claimants under this subdivision are subject
to the notice requirements of deleted text begin section 289A.38, subdivision 7deleted text end new text begin sections 289A.38 to 289A.384new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
new text end
Sec. 15.
Minnesota Statutes 2018, section 469.319, subdivision 4, is amended to read:
Subd. 4.
Repayment procedures.
(a) For the repayment of taxes imposed under chapter
290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an
amended return with the commissioner of revenue and pay any taxes required to be repaid
within 30 days after becoming subject to repayment under this section. The amount required
to be repaid is determined by calculating the tax for the period or periods for which repayment
is required without regard to the exemptions and credits allowed under section 469.315.
(b) For the repayment of taxes imposed under chapter 297B, a business must pay any
taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of
revenue, within 30 days after becoming subject to repayment under this section.
(c) For the repayment of property taxes, the county auditor shall prepare a tax statement
for the business, applying the applicable tax extension rates for each payable year and
provide a copy to the business and to the taxpayer of record. The business must pay the
taxes to the county treasurer within 30 days after receipt of the tax statement. The business
or the taxpayer of record may appeal the valuation and determination of the property tax to
the Tax Court within 30 days after receipt of the tax statement.
(d) The provisions of chapters 270C and 289A relating to the commissioner's authority
to audit, assess, and collect the tax and to hear appeals are applicable to the repayment
required under paragraphs (a) and (b). The commissioner may impose civil penalties as
provided in chapter 289A, and the additional tax and penalties are subject to interest at the
rate provided in section 270C.40. The additional tax shall bear interest from 30 days after
becoming subject to repayment under this section until the date the tax is paid. Any penalty
imposed pursuant to this section shall bear interest from the date provided in section 270C.40,
subdivision 3, to the date of payment of the penalty.
(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add the
amount required to be repaid to the property taxes assessed against the property for payment
in the year following the year in which the auditor provided the statement under paragraph
(c).
(f) For determining the tax required to be repaid, a reduction of a state or local sales or
use tax is deemed to have been received on the date that the good or service was purchased
or first put to a taxable use. In the case of an income tax or franchise tax, including the credit
payable under section 469.318, a reduction of tax is deemed to have been received for the
two most recent tax years that have ended prior to the date that the business became subject
to repayment under this section. In the case of a property tax, a reduction of tax is deemed
to have been received for the taxes payable in the year that the business became subject to
repayment under this section and for the taxes payable in the prior year.
(g) The commissioner may assess the repayment of taxes under paragraph (d) any time
within two years after the business becomes subject to repayment under subdivision 1, or
within any period of limitations for the assessment of tax under deleted text begin section 289A.38deleted text end new text begin sections
289A.38 to 289A.384new text end , whichever period is later. The county auditor may send the statement
under paragraph (c) any time within three years after the business becomes subject to
repayment under subdivision 1.
(h) A business is not entitled to any income tax or franchise tax benefits, including
refundable credits, for any part of the year in which the business becomes subject to
repayment under this section nor for any year thereafter. Property is not exempt from tax
under section 272.02, subdivision 64, for any taxes payable in the year following the year
in which the property became subject to repayment under this section nor for any year
thereafter. A business is not eligible for any sales tax benefits beginning with goods or
services purchased or first put to a taxable use on the day that the business becomes subject
to repayment under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
new text end
Sec. 16. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2018, section 289A.38, subdivisions 7, 8, and 9,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for federal adjustments that have a final
determination date after June 30, 2019.
new text end
ARTICLE 11
DEPARTMENT OF REVENUE INDIVIDUAL INCOME AND CORPORATE
FRANCHISE TAXES; POLICY CHANGES
Section 1.
Minnesota Statutes 2018, section 290.0132, subdivision 26, is amended to read:
Subd. 26.
Social Security benefits.
(a) A portion of Social Security benefits is allowed
as a subtraction. The subtraction equals the lesser of Social Security benefits or a maximum
subtraction subject to the limits under paragraphs (b), (c), and (d).
(b) For married taxpayers filing a joint return and surviving spouses, the maximum
subtraction equals $4,500. The maximum subtraction is reduced by 20 percent of provisional
income over $77,000. In no case is the subtraction less than zero.
(c) For single or head-of-household taxpayers, the maximum subtraction equals $3,500.
The maximum subtraction is reduced by 20 percent of provisional income over $60,200.
In no case is the subtraction less than zero.
(d) For married taxpayers filing separate returns, the maximum subtraction equals deleted text begin $2,250deleted text end new text begin
one-half the maximum subtraction for joint returns under paragraph (b)new text end . The maximum
subtraction is reduced by 20 percent of provisional income over deleted text begin $38,500deleted text end new text begin one-half the
threshold amount specified in paragraph (b)new text end . In no case is the subtraction less than zero.
(e) For purposes of this subdivision, "provisional income" means modified adjusted
gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of
the Social Security benefits received during the taxable year, and "Social Security benefits"
has the meaning given in section 86(d)(1) of the Internal Revenue Code.
(f) The commissioner shall adjust the maximum subtraction and threshold amounts in
paragraphs (b) to (d) by the percentage determined pursuant to the provisions of section
1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) of the Internal Revenue
Code the word "2016" shall be substituted for the word "1992." For 2018, the commissioner
shall then determine the percentage change from the 12 months ending on August 31, 2016,
to the 12 months ending on August 31, 2017, and in each subsequent year, from the 12
months ending on August 31, 2016, to the 12 months ending on August 31 of the year
preceding the taxable year. The determination of the commissioner pursuant to this
subdivision must not be considered a rule and is not subject to the Administrative Procedure
Act contained in chapter 14, including section 14.386. The maximum subtraction and
threshold amounts as adjusted must be rounded to the nearest $10 amount. If the amount
ends in $5, the amount is rounded up to the nearest $10 amount.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
Sec. 2.
Minnesota Statutes 2018, section 290.0137, is amended to read:
290.0137 ACCELERATED RECOGNITION OF CERTAIN INSTALLMENT
SALE GAINS.
(a) In the case of a nonresident individual or a person who becomes a nonresident
individual during the tax year, taxable net income shall include the deleted text begin allocabledeleted text end amount realized
upon a sale of the assets of, or any interest in, an S corporation or partnership that operated
in Minnesota during the year of sale, including any income or gain to be recognized in future
years pursuant to an installment sale method of reporting under the Internal Revenue Code.
(1) For the purposes of this paragraph, an individual who becomes a nonresident of
Minnesota in any year after an installment sale is required to recognize the full amount of
any income or gain described in this paragraph on the individual's final Minnesota resident
tax return to the extent that such income has not been recognized in a prior year.
(2) For the purposes of this section, "realized" has the meaning given in section 1001(b)
of the Internal Revenue Code.
(3) For the purposes of this section, "installment sale" means any installment sale under
section 453 of the Internal Revenue Code and any other sale that is reported utilizing a
method of accounting authorized under subchapter E of the Internal Revenue Code that
allows taxpayers to delay reporting or recognizing a realized gain until a future year.
deleted text begin
(4) For the purposes of this section, "allocable amount" means the full amount to be
apportioned to Minnesota under section 290.191 or 290.20, or the full amount to be assigned
to Minnesota under section 290.17.
deleted text end
(b) Notwithstanding paragraph (a), nonresident taxpayers may elect to defer recognizing
unrecognized installment sale gains by making an election under this paragraph. The election
must be filed on a form to be determined or prescribed by the commissioner and must be
filed by the due date of the individual income tax return, including any extension. Electing
taxpayers must make an irrevocable agreement to:
(1) file Minnesota tax returns in all subsequent years when gains from the installment
sales are recognized and reported to the Internal Revenue Service;
(2) allocate gains to the state of Minnesota as though the gains were realized in the year
of sale under section 290.17, 290.191, or 290.20; and
(3) include all relevant federal tax documents reporting the installment sale with
subsequent Minnesota tax returns.
(c) Income or gain recognized for Minnesota purposes pursuant to paragraph (a) must
be excluded from taxable net income in any future year that the taxpayer files a Minnesota
tax return to the extent that the income or gain has already been subject to tax pursuant to
paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2018, section 290.06, subdivision 2c, is amended to read:
Subd. 2c.
Schedules of rates for individuals, estates, and trusts.
(a) The income taxes
imposed by this chapter upon married individuals filing joint returns and surviving spouses
as defined in section 2(a) of the Internal Revenue Code must be computed by applying to
their taxable net income the following schedule of rates:
(1) On the first $35,480, 5.35 percent;
(2) On all over $35,480, but not over $140,960, 7.05 percent;
(3) On all over $140,960, but not over $250,000, 7.85 percent;
(4) On all over $250,000, 9.85 percent.
Married individuals filing separate returns, estates, and trusts must compute their income
tax by applying the above rates to their taxable income, except that the income brackets
will be one-half of the above amountsnew text begin after the adjustment required in subdivision 2dnew text end .
(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first $24,270, 5.35 percent;
(2) On all over $24,270, but not over $79,730, 7.05 percent;
(3) On all over $79,730, but not over $150,000, 7.85 percent;
(4) On all over $150,000, 9.85 percent.
(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as
a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first $29,880, 5.35 percent;
(2) On all over $29,880, but not over $120,070, 7.05 percent;
(3) On all over $120,070, but not over $200,000, 7.85 percent;
(4) On all over $200,000, 9.85 percent.
(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax
of any individual taxpayer whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not more
than $100. The amount of tax for each bracket shall be computed at the rates set forth in
this subdivision, provided that the commissioner may disregard a fractional part of a dollar
unless it amounts to 50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the entire year must compute the
individual's Minnesota income tax as provided in this subdivision. After the application of
the nonrefundable credits provided in this chapter, the tax liability must then be multiplied
by a fraction in which:
(1) the numerator is the individual's Minnesota source federal adjusted gross income as
defined in section 62 of the Internal Revenue Code and increased bynew text begin :
new text end
new text begin (i)new text end the additions required under deleted text begin sectiondeleted text end new text begin sectionsnew text end 290.0131, subdivisions 2 and 6 to 11,new text begin
and 290.0137, paragraph (a);new text end and reduced by
new text begin (ii)new text end the Minnesota assignable portion of the subtraction for United States government
interest under section 290.0132, subdivision 2, deleted text begin anddeleted text end the subtractions under deleted text begin sectiondeleted text end new text begin sectionsnew text end
290.0132, subdivisions 9, 10, 14, 15, 17, and 18new text begin , and 290.0137, paragraph (c)new text end , after applying
the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted gross income as defined in section
62 of the Internal Revenue Code, increased bynew text begin :
new text end
new text begin (i)new text end the deleted text begin amounts specified in sectiondeleted text end new text begin additions required under sectionsnew text end 290.0131,
subdivisions 2 and 6 to 11,new text begin and 290.0137, paragraph (a);new text end and reduced by
new text begin (ii)new text end the deleted text begin amounts specified in sectiondeleted text end new text begin subtractions under sectionsnew text end 290.0132, subdivisions
2, 9, 10, 14, 15, 17, and 18new text begin , and 290.0137, paragraph (c)new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
The amendment to paragraph (a) is effective for taxable years
beginning after December 31, 2018. The amendment to paragraph (e) is effective the day
following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2018, section 290.06, subdivision 2d, is amended to read:
Subd. 2d.
Inflation adjustment of brackets.
(a) For taxable years beginning after
December 31, 2013, the minimum and maximum dollar amounts for each rate bracket for
which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage
determined under paragraph (b). For the purpose of making the adjustment as provided in
this subdivision all of the rate brackets provided in subdivision 2c shall be the rate brackets
as they existed for taxable years beginning after December 31, 2012, and before January 1,
2014. The rate applicable to any rate bracket must not be changed. The dollar amounts
setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate
brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in
$5, it must be rounded up to the nearest $10 amount.
(b) The commissioner shall adjust the rate brackets and by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section
1(f)(3)(B) the word "2012" shall be substituted for the word "1992." For 2014, the
commissioner shall then determine the percent change from the 12 months ending on August
31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent year, from
the 12 months ending on August 31, 2012, to the 12 months ending on August 31 of the
year preceding the taxable year.new text begin The commissioner shall determine the rate bracket for
married filing separate returns after this adjustment is done. The rate bracket for married
filing separate must be one-half of the rate bracket for married filing joint.new text end The determination
of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
not be subject to the Administrative Procedure Act contained in chapter 14.
No later than December 15 of each year, the commissioner shall announce the specific
percentage that will be used to adjust the tax rate brackets.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2018.
new text end
ARTICLE 12
DEPARTMENT OF REVENUE INDIVIDUAL INCOME AND CORPORATE
FRANCHISE TAXES; TECHNICAL CHANGES
Section 1.
Minnesota Statutes 2018, section 289A.38, subdivision 7, is amended to read:
Subd. 7.
Federal tax changes.
new text begin (a) new text end If the amount of income, items of tax preference,
deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any
period, as reported to the Internal Revenue Service is changed or corrected by the
commissioner of Internal Revenue or other officer of the United States or other competent
authority, or where a renegotiation of a contract or subcontract with the United States results
in a change in income, items of tax preference, deductions, credits, or withholding tax, or,
in the case of estate tax, where there are adjustments to the taxable estate, the taxpayer shall
report the change or correction or renegotiation results in writing to the commissioner. The
report must be submitted within 180 days after the final determination and must be in the
form of either an amended Minnesota estate, withholding tax, corporate franchise tax, or
income tax return conceding the accuracy of the federal determination or a letter detailing
how the federal determination is incorrect or does not change the Minnesota tax. An amended
Minnesota income tax return must be accompanied by an amended property tax refund
return, if necessary. A taxpayer filing an amended federal tax return must also file a copy
of the amended return with the commissioner of revenue within 180 days after filing the
amended return.
new text begin
(b) For the purposes of paragraph (a), a change or correction includes any case where a
taxpayer reaches a closing agreement or compromise with the Internal Revenue Service
under section 7121 or 7122 of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2018, section 290.92, subdivision 28, is amended to read:
Subd. 28.
Payments to horse racing license holders.
Effective with payments made
after April 1, 1988, any holder of a license issued by the Minnesota Racing Commission
who makes a payment for personal or professional services to a holder of a class C license
issued by the commission, except an amount paid as a purse, shall deduct from the payment
and withhold 6.25 percent of the amount as Minnesota withholding tax when the amount
paid to that individual by the same person during the calendar year exceeds $600. For
purposes of the provisions of this section, a payment to any person which is subject to
withholding under this subdivision must be treated as if the payment was a wage paid by
an employer to an employee. Every individual who is to receive a payment which is subject
to withholding under this subdivision shall furnish the license holder with a statement, made
under the penalties of perjury, containing the name, address, and Social Security account
number of the person receiving the payment. No withholding is required if the individual
presents a signed certificate from the individual's employer which states that the individual
is an employee of that employer. A nonresident individual who holds a class C license must
be treated as an athlete for purposes of applying the provisions of subdivision 4a and section
290.17, subdivision 2deleted text begin (1)(b)(ii)deleted text end new text begin (a)(2)(ii)new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2018, section 462D.03, subdivision 2, is amended to read:
Subd. 2.
Designation of qualified beneficiary.
(a) The account holder must designate
a first-time home buyer as the qualified beneficiary of the account deleted text begin by April 15 of the yeardeleted text end new text begin
in a form and manner prescribed by the commissionernew text end following the taxable year in which
the account was established. The account holder may be the qualified beneficiary. The
account holder may change the designated qualified beneficiary at any time, but no more
than one qualified beneficiary may be designated for an account at any one time. For purposes
of the one beneficiary restriction, a married couple qualifies as one beneficiary. Changing
the designated qualified beneficiary of an account does not affect computation of the ten-year
period under section 462D.06, subdivision 2.
(b) The commissioner shall establish a process for account holders to notify the state
that permits recording of the account, the account holder or holders, any transfers under
section 462D.04, subdivision 2, and the designated qualified beneficiary for each account.
This may be done upon filing the account holder's income tax return or in any other way
the commissioner determines to be appropriate.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 13
DEPARTMENT OF REVENUE; SALES AND USE TAXES; TECHNICAL CHANGES
Section 1.
Minnesota Statutes 2018, section 297A.68, subdivision 17, is amended to read:
Subd. 17.
Ships used in interstate commercenew text begin ; other vesselsnew text end .
Repair, replacement, and
rebuilding parts and materials, and lubricants, fornew text begin the following are exempt:
new text end
new text begin (1)new text end ships or vessels used or to be used principally in interstate or foreign commerce deleted text begin are
exempt.deleted text end new text begin ; and
new text end
new text begin (2)new text end vessels with a gross registered tonnage of at least 3,000 tons deleted text begin are exemptdeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2018, section 297A.68, subdivision 42, is amended to read:
Subd. 42.
Qualified data centers.
(a) Purchases of enterprise information technology
equipment and computer software for use in a qualified data center, or a qualified refurbished
data center, are exempt, except that computer software maintenance agreements are exempt
for purchases made after June 30, 2013. The tax on purchases exempt under this paragraph
must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied,
and then refunded after June 30, 2013, in the manner provided in section 297A.75. This
exemption includes enterprise information technology equipment and computer software
purchased to replace or upgrade enterprise information technology equipment and computer
software in a qualified data center, or a qualified refurbished data center.
(b) Electricity used or consumed in the operation of a qualified data center or qualified
refurbished data center is exempt.
(c) For purposes of this subdivision, "qualified data center" means a facility in Minnesota:
(1) that is comprised of one or more buildings that consist in the aggregate of at least
25,000 square feet, and that are located on a single parcel or on contiguous parcels, where
the total cost of construction or refurbishment, investment in enterprise information
technology equipment, and computer software is at least $30,000,000 within a 48-month
period. The 48-month period begins no sooner than July 1, 2012, except that costs for
computer software maintenance agreements purchased before July 1, 2013, are not included
in determining if the $30,000,000 threshold has been met;
(2) that is constructed or substantially refurbished after June 30, 2012, where
"substantially refurbished" means that at least 25,000 square feet have been rebuilt or
modified, including:
(i) installation of enterprise information technology equipment; environmental control,
computer software, and energy efficiency improvements; and
(ii) building improvements; and
(3) that is used to house enterprise information technology equipment, where the facility
has the following characteristics:
(i) uninterruptible power supplies, generator backup power, or both;
(ii) sophisticated fire suppression and prevention systems; and
(iii) enhanced security. A facility will be considered to have enhanced security if it has
restricted access to the facility to selected personnel; permanent security guards; video
camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans,
such as hand scans and retinal or fingerprint recognition; or similar security features.
In determining whether the facility has the required square footage, the square footage
of the following spaces shall be included if the spaces support the operation of enterprise
information technology equipment: office space, meeting space, and mechanical and other
support facilities. For purposes of this subdivision, "computer software" includes, but is not
limited to, software utilized or loaded at a qualified data center or qualified refurbished data
center, including maintenance, licensing, and software customization.
(d) For purposes of this subdivision, a "qualified refurbished data center" means an
existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but
that is comprised of one or more buildings that consist in the aggregate of at least 25,000
square feet, and that are located on a single parcel or contiguous parcels, where the total
cost of construction or refurbishment, investment in enterprise information technology
equipment, and computer software is at least $50,000,000 within a 24-month period.
(e) For purposes of this subdivision, "enterprise information technology equipment"
means computers and equipment supporting computing, networking, or data storage,
including servers and routers. It includes, but is not limited to: cooling systems, cooling
towers, and other temperature control infrastructure; power infrastructure for transformation,
distribution, or management of electricity used for the maintenance and operation of a
qualified data center or qualified refurbished data center, including but not limited to exterior
dedicated business-owned substations, backup power generation systems, battery systems,
and related infrastructure; and racking systems, cabling, and trays, which are necessary for
the maintenance and operation of the qualified data center or qualified refurbished data
center.
(f) A qualified data center or qualified refurbished data center may claim the exemptions
in this subdivision for purchases made either within 20 years of the date of its first purchase
qualifying for the exemption under paragraph (a), or by June 30, 2042, whichever is earlier.
(g) The purpose of this exemption is to create jobs in the construction and data center
industries.
(h) This subdivision is effective for sales and purchases made before July 1, 2042.
(i) The commissioner of employment and economic development must certify to the
commissioner of revenue, in a format approved by the commissioner of revenue, when a
qualified data center has met the requirements under paragraph (c) or a qualified refurbished
data center has met the requirements under paragraph (d). The certification must provide
the following information regarding each qualified data center or qualified refurbished data
center:
(1) the total square footage amount;
(2) the total amount of construction or refurbishment costs and the total amount of
qualifying investments in enterprise information technology equipment and computer
software; deleted text begin and
deleted text end
(3) the beginning and ending of the applicable period under either paragraph (c) or (d)
in which the qualifying expenditures and purchases under clause (2) were made, but in no
case shall the period begin before July 1, 2012;new text begin and
new text end
new text begin
(4) the date upon which the qualified data center first met the requirements under
paragraph (c) or a qualified refurbished data center first met the requirements under paragraph
(d).
new text end
(j) Any refund for sales tax paid on qualifying purchases under this subdivision must
not be issued unless the commissioner of revenue has received the certification required
under paragraph (i) deleted text begin either fromdeleted text end new text begin issued bynew text end the commissioner of employment and economic
development deleted text begin or the qualified data center or qualified refurbished data center claiming the
refund; anddeleted text end new text begin .
new text end
(k) The commissioner of employment and economic development must annually notify
the commissioner of revenue of the qualified data centers that are projected to meet the
requirements under paragraph (c) and the qualified refurbished data centers that are projected
to meet the requirements under paragraph (d) in each of the next four years. The notification
must provide the information required under paragraph (i), clauses (1) to deleted text begin (3)deleted text end new text begin (4)new text end , for each
qualified data center or qualified refurbished data center.
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 2018, section 297A.68, subdivision 44, is amended to read:
Subd. 44.
Greater Minnesota business expansions.
(a) Purchases and use of tangible
personal property or taxable services by a qualified businessdeleted text begin , as defined in section 116J.8738,deleted text end
are exempt if:
(1) new text begin the commissioner of employment and economic development certifies to the
commissioner of revenue, in a format approved by the commissioner of revenue, that the
qualified business meets the requirements under section 116J.8738;
new text end
new text begin (2) new text end the business subsidy agreement provides that the exemption under this subdivision
applies;
deleted text begin (2)deleted text end new text begin (3)new text end the property or services are primarily used or consumed at the facility in greater
Minnesota identified in the business subsidy agreement; and
deleted text begin (3)deleted text end new text begin (4)new text end the purchase was made and delivery received during the duration of the
deleted text begin certification of the business as a qualified business under section 116J.8738deleted text end new text begin business subsidy
agreementnew text end .
(b) Purchase and use of construction materials and supplies used or consumed in, and
equipment incorporated into, the construction of improvements to real property in greater
Minnesota are exempt if the improvements after completion of construction are to be used
in the conduct of the trade or business of the qualified business, deleted text begin as defined in section
116J.8738deleted text end new text begin and the commissioner of employment and economic development certifies to
the commissioner of revenue, in a format approved by the commissioner of revenue, that
the qualified business meets the requirements under section 116J.8738new text end . This exemption
applies regardless of whether the purchases are made by the business or a contractor.
(c) The exemptions under this subdivision apply to a local sales and use tax.
(d) The tax on purchases imposed under this subdivision must be imposed and collected
as if the rate under section 297A.62 applied, and then refunded in the manner provided in
section 297A.75. The total amount refunded for a facility over the certification period is
limited to the amount listed in the business subsidy agreement. No more than $7,000,000
may be refunded in a fiscal year for all purchases under this subdivision. Refunds must be
allocated on a first-come, first-served basis. If more than $7,000,000 of eligible claims are
made in a fiscal year, claims by qualified businesses carry over to the next fiscal year, and
the commissionernew text begin of revenuenew text end must first allocate refunds to qualified businesses eligible for
a refund in the preceding fiscal year. Any portion of the balance of funds allocated for
refunds under this paragraph does not cancel and shall be carried forward to and available
for refunds in subsequent fiscal years. Notwithstanding section 297A.75, subdivision 4, for
an eligible refund claim that carries over to a subsequent fiscal year, the interest on the
amount carried over must be paid on the refund no sooner than from 90 days after July 1
of the fiscal year in which funds are available for the eligible claim.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2018, section 297A.71, subdivision 45, is amended to read:
Subd. 45.
Biopharmaceutical manufacturing facility.
(a) Materials and supplies used
or consumed in, capital equipment incorporated into, and privately owned infrastructure in
support of the construction, improvement, or expansion of a biopharmaceutical manufacturing
facility in the state are exempt ifnew text begin the commissioner of employment and economic
development certifies to the commissioner of revenue thatnew text end the following criteria are met:
(1) the facility is used for the manufacturing of biologics;
(2) the total capital investment made at the facility exceeds $50,000,000; and
(3) the facility creates and maintains at least 190 full-time equivalent positions at the
facility. These positions must be new jobs in Minnesota and not the result of relocating jobs
that currently exist in Minnesota.
(b) The tax must be imposed and collected as if the rate under section 297A.62 applied,
and refunded in the manner provided in section 297A.75.
(c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing facility
must:
(1) initially apply to the deleted text begin Departmentdeleted text end new text begin commissionernew text end of employment and economic
development for certification no later than one year from the final completion date of
construction, improvement, or expansion of the facility; and
(2) for each year that the owner of the biopharmaceutical manufacturing facility applies
for a refund, the deleted text begin ownerdeleted text end new text begin commissioner of revenuenew text end must have received written certification
from the deleted text begin Departmentdeleted text end new text begin commissionernew text end of employment and economic development that the
facility has met the criteria of paragraph (a).
(d) The refund is to be paid annually at a rate of 25 percent of the total allowable refund
payable to date, with the commissioner making annual payments of the remaining refund
until all of the refund has been paid.
(e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are
interchangeable and mean medical drugs or medicinal preparations produced using
technology that uses biological systems, living organisms, or derivatives of living organisms
to make or modify products or processes for specific use. The medical drugs or medicinal
preparations include but are not limited to proteins, antibodies, nucleic acids, and vaccines.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2018, section 297A.77, is amended by adding a subdivision to
read:
new text begin Subd. 5. new text end
new text begin Records must be kept. new text end
new text begin
Every person liable for any tax imposed by this chapter,
or for the collection thereof, shall keep such records, render such statements, make such
returns, and comply with such rules, as the commissioner may from time to time prescribe.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 14
DEPARTMENT OF REVENUE; TOBACCO TAXES; TECHNICAL CHANGES
Section 1.
Minnesota Statutes 2018, section 297F.01, subdivision 19, is amended to read:
Subd. 19.
Tobacco products.
(a) "Tobacco products" means any product containing,
made, or derived from tobacco that is intended for human consumption, whether chewed,
smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or
any component, part, or accessory of a tobacco product, including, but not limited to, cigars;
cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking
tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing
tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds
and forms of tobacco; but does not include cigarettes as defined in this section.new text begin Tobacco
products includes nicotine solution products.new text end Tobacco products excludes any tobacco product
that has been approved by the United States Food and Drug Administration for sale as a
tobacco cessation product, as a tobacco dependence product, or for other medical purposes,
and is being marketed and sold solely for such an approved purpose.
(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco
products includes a premium cigar, as defined in subdivision 13a.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2018, section 297F.01, is amended by adding a subdivision to
read:
new text begin Subd. 22b. new text end
new text begin Nicotine solution products. new text end
new text begin
(a) "Nicotine solution products" means any
cartridge, bottle, or other package that contains nicotine made or derived from tobacco, that
is in a solution that is consumed, or meant to be consumed, through the use of a heating
element, power source, electronic circuit, or other electronic, chemical, or mechanical means
that produces vapor or aerosol. This paragraph expires December 31, 2019.
new text end
new text begin
(b) Beginning January 1, 2020, "nicotine solution products" means any cartridge, bottle,
or other package that contains nicotine, including nicotine made or derived from tobacco
or sources other than tobacco, that is in a solution that is consumed, or meant to be consumed,
through the use of a heating element, power source, electronic circuit, or other electronic,
chemical, or mechanical means that produces vapor or aerosol.
new text end
new text begin
(c) Nicotine solution products includes any electronic cigarette, electronic cigar, electronic
cigarillo, electronic pipe, or similar product or device, and any batteries, heating elements,
or other components, parts, or accessories sold with and meant to be used in the consumption
of a solution containing nicotine.
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 2018, section 297F.01, subdivision 23, is amended to read:
Subd. 23.
Wholesale sales price.
new text begin (a) new text end "Wholesale sales price" means the price at which
a distributor purchases a tobacco product.
new text begin
(b) When a distributor sells a cartridge, bottle, or other package of a solution containing
nicotine that is part of a kit that also includes a product, device, component, part, or accessory
described in subdivision 22b:
new text end
new text begin
(1) the wholesale sales price is the price at which the distributor purchases the kit; except
that
new text end
new text begin
(2) if the distributor also separately sells the same package of solution containing nicotine
that is sold with the kit and can isolate the cost of the package of solution containing nicotine,
then the wholesale sales price includes only the price at which the distributor separately
purchases the package of the solution containing nicotine and any taxes, charges, and costs
listed in paragraph (c).
new text end
new text begin (c)new text end Wholesale sales price includes the applicable federal excise tax, freight charges, or
packaging costs, regardless of whether they were included in the purchase price.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 15
MINNESOTACARE; TECHNICAL CHANGES
Section 1.
Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision
to read:
new text begin Subd. 2b. new text end
new text begin Emergency medical reasons. new text end
new text begin
"Emergency medical reasons" means a public
health emergency declaration pursuant to United States Code, title 42, section 247d; a
national security or peacetime emergency declared by the governor pursuant to section
12.31; or a situation involving an action by the commissioner of health pursuant to section
144.4197, 144.4198, or 151.37, subdivisions 2, paragraph (b), and 10, except that, for
purposes of this subdivision, a drug shortage not caused by a public health emergency shall
not constitute an emergency medical reason.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2018, section 295.50, subdivision 3, is amended to read:
Subd. 3.
Gross revenues.
"Gross revenues" are total amounts received in money or
otherwise by:
(1) a hospital for patient services;
(2) a surgical center for patient services;
(3) a health care provider, other than a staff model health deleted text begin carrierdeleted text end new text begin plan companynew text end , for
patient services;
(4) a wholesale drug distributor for sale or distribution of legend drugs that are delivered
in Minnesota by the wholesale drug distributor, by common carrier, or by mail, unless the
legend drugs are delivered to another wholesale drug distributor who sells legend drugs
exclusively at wholesaledeleted text begin . Legend drugs do not include nutritional products as defined in
Minnesota Rules, part 9505.0325, and blood and blood componentsdeleted text end ; and
(5) a staff model health plan company as gross premiums for enrollees, co-payments,
deductibles, coinsurance, and fees for patient services.
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 2018, section 295.50, subdivision 4, is amended to read:
Subd. 4.
Health care provider.
(a) "Health care provider" means:
(1) a person whose health care occupation is regulated or required to be regulated by
the state of Minnesota furnishing any or all of the following goods or services directly to a
patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services,
drugs, laboratory, diagnostic or therapeutic services;
(2) a person who provides goods and services not listed in clause (1) that qualify for
reimbursement under the medical assistance program provided under chapter 256B;
(3) a staff model health plan company;
(4) an ambulance service required to be licensed; deleted text begin or
deleted text end
(5) a person who sells or repairs hearing aids and related equipment or prescription
eyeweardeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(6) a person providing patient services, who does not otherwise meet the definition of
health care provider and is not specifically excluded in clause (b), who employs or contracts
with a health care provider as defined in clauses (1) to (5) to perform, supervise, otherwise
oversee, or consult with regarding patient services.
new text end
(b) Health care provider does not include:
(1) hospitals; medical supplies distributors, except as specified under paragraph (a),
clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction;
wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation,
or any other providers of transportation services other than ambulance services required to
be licensed; supervised living facilities for persons with developmental disabilities, licensed
under Minnesota Rules, parts 4665.0100 to 4665.9900; housing with services establishments
required to be registered under chapter 144D; board and lodging establishments providing
only custodial services that are licensed under chapter 157 and registered under section
157.17 to provide supportive services or health supervision services; adult foster homes as
defined in Minnesota Rules, part 9555.5105; day training and habilitation services for adults
with developmental disabilities as defined in section 252.41, subdivision 3; boarding care
homes, as defined in Minnesota Rules, part 4655.0100; and adult day care centers as defined
in Minnesota Rules, part 9555.9600;
(2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 15; a
person providing personal care services and supervision of personal care services as defined
in Minnesota Rules, part 9505.0335; a person providing home care nursing services as
defined in Minnesota Rules, part 9505.0360; and home care providers required to be licensed
under chapter 144Anew text begin for home care services provided under chapter 144Anew text end ;
(3) a person who employs health care providers solely for the purpose of providing
patient services to its employees;
(4) an educational institution that employs health care providers solely for the purpose
of providing patient services to its students if the institution does not receive fee for service
payments or payments for extended coverage; and
(5) a person who receives all payments for patient services from health care providers,
surgical centers, or hospitals for goods and services that are taxable to the paying health
care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision
1,new text begin paragraph (b),new text end clause (3) or (4), or from a source of funds that is exempt from tax under
this chapter.
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 2018, section 295.50, is amended by adding a subdivision to
read:
new text begin Subd. 7a. new text end
new text begin Manufacturer. new text end
new text begin
"Manufacturer" has the meaning provided in section 151.01,
subdivision 14a.
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 2018, section 295.50, subdivision 9b, is amended to read:
Subd. 9b.
Patient services.
(a) "Patient services" means inpatient and outpatient services
and other goods and services provided by hospitals, surgical centers, or health care providers.
They include the following health care goods and services provided to a patient or consumer:
(1) bed and board;
(2) nursing services and other related services;
(3) use of hospitals, surgical centers, or health care provider facilities;
(4) medical social services;
(5) drugs, biologicals, supplies, appliances, and equipment;
(6) other diagnostic or therapeutic items or services;
(7) medical or surgical services;
(8) items and services furnished to ambulatory patients not requiring emergency care;
and
(9) emergency services.
(b) "Patient services" does not include:
(1) services provided to nursing homes licensed under chapter 144A;
(2) examinations for purposes of utilization reviews, insurance claims or eligibility,
litigation, and employment, including reviews of medical records for those purposes;
(3) services provided to and by community residential mental health facilities licensed
under Minnesota Rules, parts 9520.0500 to 9520.0670, and to and by residential treatment
programs for children with severe emotional disturbance licensed or certified under chapter
245A;
(4) services provided deleted text begin to and by community support programs and family community
support programs approved under Minnesota Rules, parts 9535.1700 to 9535.1760, or
certified as mental health rehabilitative services under chapter 256B;deleted text end new text begin under the following
programs: day treatment services as defined in section 245.462, subdivision 8; assertive
community treatment as described in section 256B.0622; adult rehabilitative mental health
services as described in section 256B.0623; adult crisis response services as described in
section 256B.0624; children's therapeutic services and supports as described in section
256B.0943; and children's mental health crisis response services as described in section
256B.0944;
new text end
(5) services provided to and by community mental health centers as defined in section
245.62, subdivision 2;
(6) services provided to and by assisted living programs and congregate housing
programs;
(7) hospice care services;
(8) home and community-based waivered services under sections 256B.0915, 256B.49,
and 256B.501;
(9) targeted case management services under sections 256B.0621; 256B.0625,
subdivisions 20, 20a, 33, and 44; and 256B.094; and
(10) services provided to the following: supervised living facilities for persons with
developmental disabilities licensed under Minnesota Rules, parts 4665.0100 to 4665.9900;
housing with services establishments required to be registered under chapter 144D; board
and lodging establishments providing only custodial services that are licensed under chapter
157 and registered under section 157.17 to provide supportive services or health supervision
services; adult foster homes as defined in Minnesota Rules, part 9555.5105; day training
and habilitation services for adults with developmental disabilities as defined in section
252.41, subdivision 3; boarding care homes as defined in Minnesota Rules, part 4655.0100;
adult day care services as defined in section 245A.02, subdivision 2a; and home health
agencies as defined in Minnesota Rules, part 9505.0175, subpart 15, or licensed under
chapter 144A.
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 2018, section 295.50, is amended by adding a subdivision to
read:
new text begin Subd. 10c. new text end
new text begin Pharmacy benefits manager. new text end
new text begin
"Pharmacy benefits manager" means an entity
that performs pharmacy benefits management.
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 2018, section 295.50, is amended by adding a subdivision to
read:
new text begin Subd. 13a. new text end
new text begin Third-party purchaser of health care services. new text end
new text begin
"Third-party purchaser of
health care services" includes but is not limited to a health carrier or community integrated
service network that pays for health care services on behalf of patients or that reimburses,
indemnifies, compensates, or otherwise insures patients for health care services.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2018, section 295.50, subdivision 14, is amended to read:
Subd. 14.
Wholesale drug distributor.
"Wholesale drug distributor" means deleted text begin a wholesale
drug distributor required to be licensed under sections 151.42 to 151.51.deleted text end new text begin any person engaged
in wholesale drug distribution including but not limited to manufacturers; repackagers;
own-label distributors; jobbers; brokers; warehouses, including manufacturers' and
distributors' warehouses, chain drug warehouses, and wholesale drug warehouses;
independent wholesale drug traders; and pharmacies that conduct wholesale drug distribution.
A wholesale drug distributor does not include a common carrier or individual hired primarily
to transport legend drugs.
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. 9.
Minnesota Statutes 2018, section 295.50, subdivision 15, is amended to read:
Subd. 15.
Legend drug.
"Legend drug" means a drug that is required by federal law to
bear one of the following statements: "Caution: Federal law prohibits dispensing without
prescription" or "Rx only."new text begin Legend drugs do not include nutritional products as defined in
Minnesota Rules, part 9505.0325, subpart 1, and blood and blood components.
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 2018, section 295.50, is amended by adding a subdivision to
read:
new text begin Subd. 16. new text end
new text begin Wholesale drug distribution. new text end
new text begin
"Wholesale drug distribution" means the sale
or distribution of legend drugs to a person other than a consumer or patient, but does not
include:
new text end
new text begin
(1) a sale between a division, subsidiary, parent, affiliated, or related company under
the common ownership and control of a corporate entity;
new text end
new text begin
(2) the purchase or other acquisition, by a hospital or other health care entity that is a
member of a group purchasing organization, of a legend drug for its own use from the
organization or from other hospitals or health care entities that are members of such
organizations;
new text end
new text begin
(3) the sale, purchase, or trade of a legend drug by a charitable organization described
in section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December
31, 1988, to a nonprofit affiliate of the organization to the extent otherwise permitted by
law;
new text end
new text begin
(4) the sale, purchase, or trade of a legend drug among hospitals or other health care
entities that are under common control;
new text end
new text begin
(5) the sale, purchase, or trade of a legend drug for emergency medical reasons;
new text end
new text begin
(6) the transfer of legend drugs by a retail pharmacy to another retail pharmacy to alleviate
a temporary shortage; or
new text end
new text begin
(7) the distribution of legend drug samples by manufacturer representatives.
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. 11.
Minnesota Statutes 2018, section 295.53, subdivision 1, is amended to read:
Subdivision 1.
new text begin Exclusions and new text end Exemptions.
(a) The following payments are excluded
from the gross revenues subject to the hospital, surgical center, or health care provider taxes
under sections 295.50 to 295.59:
deleted text begin
(1) payments received for services provided under the Medicare program, including
payments received from the government, and organizations governed by sections 1833 and
1876 of title XVIII of the federal Social Security Act, United States Code, title 42, section
1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the Medicare
enrollee or by a Medicare supplemental coverage as defined in section 62A.011, subdivision
3, clause (10), or by Medicaid payments under title XIX of the federal Social Security Act.
Payments for services not covered by Medicare are taxable;
deleted text end
deleted text begin
(2) payments received for home health care services;
deleted text end
deleted text begin
(3) payments received from hospitals or surgical centers for goods and services on which
liability for tax is imposed under section 295.52 or the source of funds for the payment is
exempt under clause (1), (7), (10), or (14);
deleted text end
deleted text begin
(4) payments received from health care providers for goods and services on which
liability for tax is imposed under this chapter or the source of funds for the payment is
exempt under clause (1), (7), (10), or (14);
deleted text end
deleted text begin
(5) amounts paid for legend drugs, other than nutritional products and blood and blood
components, to a wholesale drug distributor who is subject to tax under section 295.52,
subdivision 3, reduced by reimbursements received for legend drugs otherwise exempt
under this chapter;
deleted text end
deleted text begin (6)deleted text end new text begin (1)new text end payments received by a health care provider or the wholly owned subsidiary of
a health care provider for care provided outside Minnesota;
deleted text begin
(7) payments received from the chemical dependency fund under chapter 254B;
deleted text end
deleted text begin
(8) payments received in the nature of charitable donations that are not designated for
providing patient services to a specific individual or group;
deleted text end
deleted text begin
(9) payments received for providing patient services incurred through a formal program
of health care research conducted in conformity with federal regulations governing research
on human subjects. Payments received from patients or from other persons paying on behalf
of the patients are subject to tax;
deleted text end
deleted text begin
(10) payments received from any governmental agency for services benefiting the public,
not including payments made by the government in its capacity as an employer or insurer
or payments made by the government for services provided under the MinnesotaCare
program or the medical assistance program governed by title XIX of the federal Social
Security Act, United States Code, title 42, sections 1396 to 1396v;
deleted text end
deleted text begin (11)deleted text end new text begin (2)new text end government payments received by the commissioner of human services for
state-operated services;
deleted text begin (12)deleted text end new text begin (3)new text end payments received by a health care provider for hearing aids and related
equipment or prescription eyewear delivered outside of Minnesota;new text begin and
new text end
deleted text begin (13)deleted text end new text begin (4)new text end payments received by an educational institution from student tuition, student
activity fees, health care service fees, government appropriations, donations, or grants, and
for services identified in and provided under an individualized education program as defined
in section 256B.0625 or Code of Federal Regulations, chapter 34, section 300.340(a). Fee
for service payments and payments for extended coverage are taxabledeleted text begin ;deleted text end new text begin .
new text end
deleted text begin
(14) payments received under the federal Employees Health Benefits Act, United States
Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990.
Enrollee deductibles, coinsurance, and co-payments are subject to tax; and
deleted text end
deleted text begin
(15) payments received under the federal Tricare program, Code of Federal Regulations,
title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and co-payments are subject
to tax.
deleted text end
new text begin
(b) The following payments are exempted from the gross revenues subject to hospital,
surgical center, or health care provider taxes under sections 295.50 to 295.59:
new text end
new text begin
(1) payments received for services provided under the Medicare program, including
payments received from the government and organizations governed by sections 1833,
1853, and 1876 of title XVIII of the federal Social Security Act, United States Code, title
42, section 1395; and enrollee deductibles, co-insurance, and co-payments, whether paid
by the Medicare enrollee, by Medicare supplemental coverage as described in section
62A.011, subdivision 3, clause (10), or by Medicaid payments under title XIX of the federal
Social Security Act. Payments for services not covered by Medicare are taxable;
new text end
new text begin
(2) payments received for home health care services;
new text end
new text begin
(3) payments received from hospitals or surgical centers for goods and services on which
liability for tax is imposed under section 295.52 or the source of funds for the payment is
exempt under clauses (1), (6), (9), (10), or (11);
new text end
new text begin
(4) payments received from the health care providers for goods and services on which
liability for tax is imposed under this chapter or the source of funds for the payment is
exempt under clause (1), (6), (9), (10), or (11);
new text end
new text begin
(5) amounts paid for legend drugs to a wholesale drug distributor who is subject to tax
under section 295.52, subdivision 3, reduced by reimbursement received for legend drugs
otherwise exempt under this chapter;
new text end
new text begin
(6) payments received from the chemical dependency fund under chapter 254B;
new text end
new text begin
(7) payments received in the nature of charitable donations that are not designated for
providing patient services to a specific individual or group;
new text end
new text begin
(8) payments received for providing patient services incurred through a formal program
of health care research conducted in conformity with federal regulations governing research
on human subjects. Payments received from patients or from other persons paying on behalf
of the patients are subject to tax;
new text end
new text begin
(9) payments received from any governmental agency for services benefiting the public,
not including payments made by the government in its capacity as an employer or insurer
or payments made by the government for services provided under the MinnesotaCare
program or the medical assistance program governed by title XIX of the federal Social
Security Act, United States Code, title 42, section 1396 to 1396v;
new text end
new text begin
(10) payments received under the federal Employees Health Benefits Act, United States
Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990.
Enrollee deductibles, co-insurance, and co-payments are subject to tax;
new text end
new text begin
(11) payments received under the federal Tricare program, Code of Federal Regulations,
title 32, section 199.17(a)(7). Enrollee deductibles, co-insurance, and co-payments are
subject to tax; and
new text end
new text begin
(12) supplemental or enhanced payments authorized under section 256B.196 or 256B.197.
new text end
deleted text begin (b)deleted text end new text begin new text end new text begin (c)new text end Payments received by wholesale drug distributors for legend drugs sold directly
to veterinarians or veterinary bulk purchasing organizations are excluded from the gross
revenues subject to the wholesale drug distributor tax under sections 295.50 to 295.59.
deleted text begin
(c) Supplemental or enhanced payments authorized under section 256B.19, subdivision
1c, 256B.196, or 256B.197 are excluded from gross revenues subject to the tax under sections
295.50 to 295.59.
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. 12.
Minnesota Statutes 2018, section 295.57, subdivision 5, is amended to read:
Subd. 5.
Exemption for amounts paid for legend drugs.
If a hospital, surgical center,
or health care provider cannot determine the actual cost or reimbursement of legend drugs
under the exemption provided in section 295.53, subdivision 1, paragraph deleted text begin (a)deleted text end new text begin (b)new text end , clause
(5), the following method must be used:
A hospital, surgical center, or health care provider must determine the amount paid for
legend drugs used during the month or quarter and multiply that amount by a ratio, the
numerator of which is the total amount received for taxable patient services, and the
denominator of which is the total amount received for all patient services, including amounts
exempt under section 295.53, subdivision 1new text begin , paragraph (b)new text end . The result represents the allowable
exemption for the monthly or quarterly cost of drugs.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13.
Minnesota Statutes 2018, section 295.582, subdivision 1, is amended to read:
Subdivision 1.
Tax expense transfer.
deleted text begin
(a) A hospital, surgical center, or health care
provider that is subject to a tax under section 295.52, or a pharmacy that has paid additional
expense transferred under this section by a wholesale drug distributor, may transfer additional
expense generated by section 295.52 obligations on to all third-party contracts for the
purchase of health care services on behalf of a patient or consumer. Nothing shall prohibit
a pharmacy from transferring the additional expense generated under section 295.52 to a
pharmacy benefits manager. The additional expense transferred to the third-party purchaser
or a pharmacy benefits manager must not exceed the tax percentage specified in section
295.52 multiplied against the gross revenues received under the third-party contract, and
the tax percentage specified in section 295.52 multiplied against co-payments and deductibles
paid by the individual patient or consumer. The expense must not be generated on revenues
derived from payments that are excluded from the tax under section 295.53. All third-party
purchasers of health care services including, but not limited to, third-party purchasers
regulated under chapter 60A, 62A, 62C, 62D, 62H, 62N, 64B, 65A, 65B, 79, or 79A, or
under section 471.61 or 471.617, and pharmacy benefits managers must pay the transferred
expense in addition to any payments due under existing contracts with the hospital, surgical
center, pharmacy, or health care provider, to the extent allowed under federal law. A
third-party purchaser of health care services includes, but is not limited to, a health carrier
or community integrated service network that pays for health care services on behalf of
patients or that reimburses, indemnifies, compensates, or otherwise insures patients for
health care services. For purposes of this section, a pharmacy benefits manager means an
entity that performs pharmacy benefits management. A third-party purchaser or pharmacy
benefits manager shall comply with this section regardless of whether the third-party
purchaser or pharmacy benefits manager is a for-profit, not-for-profit, or nonprofit entity.
A wholesale drug distributor may transfer additional expense generated by section 295.52
obligations to entities that purchase from the wholesaler, and the entities must pay the
additional expense. Nothing in this section limits the ability of a hospital, surgical center,
pharmacy, wholesale drug distributor, or health care provider to recover all or part of the
section 295.52 obligation by other methods, including increasing fees or charges.
deleted text end
new text begin (a) The tax expense generated by section 295.52 may be transferred as follows:
new text end
new text begin
(1) a hospital, surgical center, or health care provider subject to the tax under section
295.52 may transfer the tax expense to all third-party contracts for the purchase of health
care services on behalf of a patient or consumer;
new text end
new text begin
(2) a wholesale drug distributor subject to the tax under section 295.52 may transfer the
tax expense to entities that purchase legend drugs from the wholesale drug distributor; and
new text end
new text begin
(3) a pharmacy that has paid the tax expense transferred by a wholesale drug distributor
may transfer the tax expense to all third-party contracts for the purchase of health care
services on behalf of a patient or consumer. Nothing shall prohibit a pharmacy from
transferring the tax expense generated under section 295.52 to a pharmacy benefits manager.
new text end
new text begin
(b) The transfer of the tax expense under paragraph (a) must comply with the following:
new text end
new text begin
(1) the tax expense transferred to the third-party purchaser or a pharmacy benefits
manager must not exceed the tax percentage specified in section 295.52 multiplied against:
new text end
new text begin
(i) gross revenues received under the third-party contract; and
new text end
new text begin
(ii) co-payments and deductibles paid by the individual patient or consumer; and
new text end
new text begin
(2) the tax expense must not be generated on revenues derived from payments that are
excluded or exempted from the tax under section 295.53.
new text end
new text begin
(c) Payment of the transferred tax expense is required as follows:
new text end
new text begin
(1) all third-party purchasers of health care services, including but not limited to
third-party purchasers regulated under chapter 60A, 62A, 62C, 62D, 62H, 62N, 64B, 65A,
65B, 79, or 79A, or under section 471.61 or 471.617, and pharmacy benefits managers must
pay the transferred expense. This is in addition to any payments due under existing contracts
with the hospital, surgical center, pharmacy, or health care provider, to the extent allowed
under federal law; and
new text end
new text begin
(2) all entities that purchase legend drugs from a wholesale drug distributor must pay
the transferred expense.
new text end
new text begin
(d) A third-party purchaser or pharmacy benefits manager must comply with this section
regardless of whether the third-party purchaser or pharmacy benefits manager is a for-profit,
not-for-profit, or nonprofit entity.
new text end
new text begin
(e) Nothing in this section limits the ability of a hospital, surgical center, health care
provider, pharmacy, or wholesale drug distributor to recover all or part of the section 295.52
obligation by other methods, including increasing fees or charges.
new text end
deleted text begin (b)deleted text end new text begin new text end new text begin (f)new text end Any hospital, surgical center, or health care provider subject to a tax under section
295.52 or a pharmacy that has paidnew text begin thenew text end additional expense transferred under this section by
a wholesale drug distributor may file a complaint with the commissioner responsible for
regulating the third-party purchaser if at any time the third-party purchaser fails to comply
with deleted text begin paragraph (a)deleted text end new text begin this sectionnew text end .
deleted text begin (c)deleted text end new text begin (g)new text end If the commissioner responsible for regulating the third-party purchaser finds at
any time that the third-party purchaser has not complied with deleted text begin paragraph (a)deleted text end new text begin this sectionnew text end , the
commissioner may take enforcement action against a third-party purchaser which is subject
to the commissioner's regulatory jurisdiction and which does not allow a hospital, surgical
center, pharmacy, or provider to pass-through the taxnew text begin expensenew text end . The commissioner may by
order fine or censure the third-party purchaser or revoke or suspend the certificate of authority
or license of the third-party purchaser to do business in this state if the commissioner finds
that the third-party purchaser has not complied with this section. The third-party purchaser
may appeal the commissioner's order through a contested case hearing in accordance with
chapter 14.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 16
DEPARTMENT OF REVENUE; PROPERTY TAX; POLICY
Section 1.
Minnesota Statutes 2018, section 162.145, subdivision 3, is amended to read:
Subd. 3.
Administration.
(a) Subject to funds made available by law, the commissioner
shall allocate all funds as provided in subdivision 4 and shall deleted text begin notifydeleted text end new text begin , by June 1, certify tonew text end
the commissioner of revenuenew text begin the amounts to be paidnew text end .
(b) Following deleted text begin notificationdeleted text end new text begin certificationnew text end from the commissioner deleted text begin of transportationdeleted text end , the
commissioner of revenue shall distribute the specified funds to cities in the same manner
as local government aid under chapter 477A. An appropriation to the commissioner deleted text begin of
transportationdeleted text end under this section is available to the commissioner of revenue for the purposes
specified in this paragraph.
(c) Notwithstanding other law to the contrary, in order to receive distributions under
this section, a city must conform to the standards in section 477A.017, subdivision 2. A city
that receives funds under this section must make and preserve records necessary to show
that the funds are spent in compliance with subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2019 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2018, section 273.124, subdivision 13, is amended to read:
Subd. 13.
Homestead application.
(a) A person who meets the homestead requirements
under subdivision 1 must file a homestead application with the county assessor to initially
obtain homestead classification.
(b) The commissioner shall prescribe the content, format, and manner of the homestead
application required to be filed under this chapter pursuant to section 270C.30. The
application must clearly inform the taxpayer that this application must be signed by all
owners who occupy the property or by the qualifying relative and returned to the county
assessor in order for the property to receive homestead treatment.
(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number of each occupant who is listed as an owner of
the property on the deed of record, the name and address of each owner who does not occupy
the property, and the name and Social Security number of deleted text begin each owner'sdeleted text end new text begin thenew text end spousenew text begin of each
occupying ownernew text end . The application must be signed by each owner who occupies the property
and by each owner's spouse who occupies the property, or, in the case of property that
qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property owner's spouse may not claim
another property as a homestead unless the property owner and the property owner's spouse
file with the assessor an affidavit or other proof required by the assessor stating that the
property qualifies as a homestead under subdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spouses and previously occupied
with the other spouse, either of whom fail to include the other spouse's name and Social
Security number on the homestead application or provide the affidavits or other proof
requested, will be deemed to have elected to receive only partial homestead treatment of
their residence. The remainder of the residence will be classified as nonhomestead residential.
When an owner or spouse's name and Social Security number appear on homestead
applications for two separate residences and only one application is signed, the owner or
spouse will be deemed to have elected to homestead the residence for which the application
was signed.
(d) If residential real estate is occupied and used for purposes of a homestead by a relative
of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
the property to receive homestead status, a homestead application must be filed with the
assessor. The Social Security number of each relative occupying the property and the name
and Social Security number of the spouse of a relative occupying the property shall be
required on the homestead application filed under this subdivision. If a different relative of
the owner subsequently occupies the property, the owner of the property must notify the
assessor within 30 days of the change in occupancy. The Social Security number of a relative
occupying the property or the spouse of a relative occupying the property is private data on
individuals as defined by section 13.02, subdivision 12, but may be disclosed to the
commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture
Act to recover personal property taxes owing, to the county treasurer.
(e) The homestead application shall also notify the property owners that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or the
owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section 272.115. Failure to notify
the assessor within 30 days that the property has been sold, transferred, or that the owner,
the spouse of the owner, or the relative is no longer occupying the property as a homestead,
shall result in the penalty provided under this subdivision and the property will lose its
current homestead status.
(f) If a homestead application has not been filed with the county by December 15, the
assessor shall classify the property as nonhomestead for the current assessment year for
taxes payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section 375.192.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for homestead filed in
2020 and thereafter.
new text end
ARTICLE 17
DEPARTMENT OF REVENUE; PROPERTY TAXES; TECHNICAL
Section 1.
Minnesota Statutes 2018, section 270C.85, subdivision 2, is amended to read:
Subd. 2.
Powers and duties.
The commissioner shall have and exercise the following
powers and duties in administering the property tax lawsdeleted text begin .deleted text end new text begin :
new text end
deleted text begin (a)deleted text end new text begin (1)new text end confer with, advise, and give the necessary instructions and directions to local
assessors and local boards of review throughout the state as to their duties under the laws
of the statedeleted text begin .deleted text end new text begin ;
new text end
deleted text begin (b)deleted text end new text begin (2)new text end direct proceedings, actions, and prosecutions to be instituted to enforce the laws
relating to the liability and punishment of public officers and officers and agents of
corporations for failure or negligence to comply with the provisions of the property tax
laws, and cause complaints to be made against local assessors, members of boards of
equalization, members of boards of review, or any other assessing or taxing officer, to the
proper authority, for their removal from office for misconduct or negligence of dutydeleted text begin .deleted text end new text begin ;
new text end
deleted text begin (c)deleted text end new text begin (3)new text end require county attorneys to assist in the commencement of prosecutions in actions
or proceedings for removal, forfeiture, and punishment, for violation of the property tax
laws in their respective districts or countiesdeleted text begin .deleted text end new text begin ;
new text end
deleted text begin (d)deleted text end new text begin (4)new text end require town, city, county, and other public officers to report new text begin and certify
new text end informationnew text begin , at the parcel level or in the aggregate,new text end as to the assessmentnew text begin and taxationnew text end ofnew text begin real
and personalnew text end property, and such other information as may be needful in the work of the
commissionerdeleted text begin , in such form as the commissioner may prescribedeleted text end .new text begin The commissioner shall
prescribe the content, format, manner, and time of filing of all required reports and
certifications;
new text end
deleted text begin (e)deleted text end new text begin (5)new text end transmit to the governor, on or before the third Monday in December of each
even-numbered year, and to each member of the legislature, on or before November 15 of
each even-numbered year, the report of the department for the preceding years, showing all
the taxable property subject to the property tax laws and the value of the same, in tabulated
formdeleted text begin .deleted text end new text begin ;
new text end
deleted text begin (f)deleted text end new text begin (6)new text end inquire into the methods of assessment and taxation and ascertain whether the
assessors faithfully discharge their dutiesdeleted text begin .deleted text end new text begin ; and
new text end
deleted text begin (g)deleted text end new text begin (7)new text end assist local assessors in determining the estimated market value of industrial
special-use property. For purposes of this deleted text begin paragraphdeleted text end new text begin clausenew text end , "industrial special-use property"
means property that:
deleted text begin (1)deleted text end new text begin (i) new text end is designed and equipped for a particular type of industry;
deleted text begin (2)deleted text end new text begin (ii) new text end is not easily adapted to some other use due to the unique nature of the facilities;
deleted text begin (3)deleted text end new text begin (iii) new text end has facilities totaling at least 75,000 square feet in size; and
deleted text begin (4)deleted text end new text begin (iv) new text end has a total estimated market value of $10,000,000 or greater based on the
assessor's preliminary determination.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2018, section 270C.89, subdivision 1, is amended to read:
Subdivision 1.
Initial report.
Each county assessor shall file deleted text begin by April 1deleted text end with the
commissioner a copy of deleted text begin the abstractdeleted text end new text begin preliminary assessment information that the
commissioner may require under section 270C.85, subdivision 2, clause (4),new text end that will be
acted upon by the local and county boards of review. deleted text begin The abstract must list the real and
personal property in the county itemized by assessment districts.deleted text end The assessor of each county
in the state shall file with the commissioner, within ten working days following final action
of the local board of review or equalization and within five days following final action of
the county board of equalization, any changes made by the local or county board. deleted text begin The
information must be filed in the manner prescribed by the commissioner.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2018, section 270C.89, subdivision 2, is amended to read:
Subd. 2.
Final report.
The final deleted text begin abstract of assessmentsdeleted text end new text begin assessment informationnew text end after
adjustments by the State Board of Equalization and inclusion of any omitted property shall
be deleted text begin submitteddeleted text end new text begin reportednew text end to the commissioner deleted text begin on or before September 1 of each calendar yeardeleted text end new text begin
under section 270C.85, subdivision 2, clause (4)new text end . deleted text begin The final abstract must separately report
the captured tax capacity of tax increment financing districts under section 469.177,
subdivision 2, the areawide net tax capacity contribution values determined under sections
276A.05, subdivision 1, and 473F.07, subdivision 1, and the value subject to the power line
credit under section 273.42.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2018, section 270C.91, is amended to read:
270C.91 RECORD OF PROCEEDINGS CHANGING NET TAX CAPACITY;
DUTIES OF COUNTY AUDITOR.
A record of all proceedings of the commissioner affecting any change in the net tax
capacity of any property, as revised by the State Board of Equalization, shall be kept by the
commissioner and a copy thereof, duly certified, shall be mailed each year to the auditor of
each county wherein such property is situated, on or before June 30 deleted text begin or 30 days after
submission of the abstract required by section 270C.89, whichever is laterdeleted text end . This record shall
specify the amounts or amount, or both, added to or deducted from the net tax capacity of
the real property of each of the several towns and cities, and of the real property not in towns
or cities, also the percent or amount of both, added to or deducted from the several classes
of personal property in each of the towns and cities, and also the amount added to or deducted
from the assessment of any person. The county auditor shall add to or deduct from such
tract or lot, or portion thereof, of any real property in the county the required percent or
amount, or both, on the net tax capacity thereof as it stood after equalized by the county
board, adding in each case a fractional sum of 50 cents or more, and deducting in each case
any fractional sum of less than 50 cents, so that no net tax capacity of any separate tract or
lot shall contain any fraction of a dollar; and add to, or deduct from, the several classes of
personal property in the county the required percent or amount, or both, on the net tax
capacity thereof as it stood after equalized by the county board, adding or deducting in
manner aforesaid any fractional sum so that no net tax capacity of any separate class of
personal property shall contain a fraction of a dollar, and add to or deduct from assessment
of any person, as they stood after equalization by the county board, the required amounts
to agree with the assessments as returned by the commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2018, section 273.061, subdivision 9, is amended to read:
Subd. 9.
Additional general duties.
Additional duties of the county assessor deleted text begin shall bedeleted text end new text begin
arenew text end as follows:
(1) to make all assessments, based upon the appraised values reported by the local
assessors or assistants and the county assessor's own knowledge of the value of the property
assessed;
(2) to personally view and determine the value of any property deleted text begin whichdeleted text end new text begin thatnew text end because of
its type or character may be difficult for the local assessor to appraise;
(3) to make all changes ordered by the local boards of review, relative to the net tax
capacity of the property of any individual, firm or corporation after notice has been given
and hearings held as provided by law;
(4) to enter all assessments in the assessment books, furnished by the county auditor,
with each book and the tabular statements for each book in correct balance;
(5) to prepare all assessment cards, charts, maps and any other forms prescribed by the
commissioner of revenue;
(6) to attend the meeting of the county board of equalization; to investigate and report
on any assessment ordered by said board; to enter all changes made by said board in the
assessment books and prepare deleted text begin the abstract of assessments for the commissioner of revenuedeleted text end new text begin
information reported to the commissioner under section 270C.85, subdivision 2, clause (4)new text end ;
to enter all changes made by the State Board of Equalization in the assessment books; to
deduct all exemptions authorized by law from each assessment and certify to the county
auditor the taxable value of each parcel of land, as described and listed in the assessment
books by the county auditor, and the taxable value of the personal property of each person,
firm, or corporation assessed;
(7) to investigate and make recommendations relative to all applications for the abatement
of taxes or applications for the reduction of the net tax capacity of any property;new text begin and
new text end
(8) to perform all other duties relating to the assessment of property for the purpose of
taxation which may be required by the commissioner of revenue.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2018, section 273.0755, is amended to read:
273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.
(a) Beginning with the four-year period starting on July 1, 2000, every person licensed
by the state Board of Assessors at the Accredited Minnesota Assessor level or higher, shall
successfully complete a weeklong Minnesota laws course sponsored by the Department of
Revenue at least once in every four-year period. An assessor need not attend the course if
they successfully pass the test for the course.
(b) The commissioner of revenue may require that each county, and each city for which
the city assessor performs the duties of county assessor, have deleted text begin (i)deleted text end new text begin (1)new text end a person on the assessor's
staff who is certified by the Department of Revenue in sales ratio calculations, deleted text begin (ii)deleted text end new text begin (2)new text end an
officer or employee who is certified by the Department of Revenue in tax calculations, and
deleted text begin (iii)deleted text end new text begin (3)new text end an officer or employee who is certified by the Department of Revenue in the proper
preparation of deleted text begin abstracts of assessment. The commissioner of revenue may require that each
county have an officer or employee who is certified by the Department of Revenue in the
proper preparation of abstracts of tax listsdeleted text end new text begin information reported to the commissioner under
section 270C.85, subdivision 2, clause (4)new text end . Certifications under this paragraph expire after
four years.
(c) Beginning with the four-year educational licensing period starting on July 1, 2004,
every Minnesota assessor licensed by the State Board of Assessors must attend and participate
in a seminar that focuses on ethics, professional conduct and the need for standardized
assessment practices developed and presented by the commissioner of revenue. This
requirement must be met at least once in every subsequent four-year period. This requirement
applies to all assessors licensed for one year or more in the four-year period.
(d) When the commissioner of revenue determines that an individual or board that
performs functions related to property tax administration has performed those functions in
a manner that is not uniform or equitable, the commissioner may require that the individual
or members of the board complete supplemental training. The commissioner may not require
that an individual complete more than 32 hours of supplemental training pursuant to this
paragraph. If the individual is required to complete supplemental training due to that
individual's membership on a local or county board of appeal and equalization, the
commissioner may not require that the individual complete more than two hours of
supplemental training.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2018, section 273.113, subdivision 3, is amended to read:
Subd. 3.
Reimbursement for lost revenue.
The county auditor shall certify to the
commissioner of revenuedeleted text begin , as part of the abstracts of tax lists required to be filed with the
commissionerdeleted text end under section deleted text begin 275.29deleted text end new text begin 270C.85, subdivision 2, clause (4)new text end , the amount of tax
lost to the county from the property tax credit under subdivision 2. Any prior year adjustments
must also be certified deleted text begin in the abstracts of tax listsdeleted text end . The commissioner of revenue shall review
the certifications to determine their accuracy. The commissioner may make the changes in
the certification that are considered necessary or return a certification to the county auditor
for corrections. The commissioner shall reimburse each taxing district, other than school
districts, for the taxes lost. The payments must be made at the time provided in section
473H.10 for payment to taxing jurisdictions in the same proportion that the ad valorem tax
is distributed. Reimbursements to school districts must be made as provided in section
273.1392. The amount necessary to make the reimbursements under this section is annually
appropriated from the general fund to the commissioner of revenue.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2018, section 273.119, subdivision 2, is amended to read:
Subd. 2.
Reimbursement for lost revenue.
The county may transfer money from the
county conservation account created in section 40A.152 to the county revenue fund to
reimburse the fund for the cost of the property tax credit. The county auditor shall certify
to the commissioner of revenuedeleted text begin , as part of the abstracts of tax lists required to be filed with
the commissionerdeleted text end under section deleted text begin 275.29deleted text end new text begin 270C.85, subdivision 2, clause (4)new text end , the amount of
tax lost to the county from the property tax credit under subdivision 1 and the extent that
the tax lost exceeds funds available in the county conservation account. Any prior year
adjustments must also be certified deleted text begin in the abstracts of tax listsdeleted text end . The commissioner of revenue
shall review the certifications to determine their accuracy. The commissioner may make
the changes in the certification that are considered necessary or return a certification to the
county auditor for corrections. The commissioner shall reimburse each taxing district, other
than school districts, from the Minnesota conservation fund under section 40A.151 for the
taxes lost in excess of the county account. The payments must be made at the time provided
in section 473H.10, subdivision 3, for payment to taxing jurisdictions in the same proportion
that the ad valorem tax is distributed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2018, section 273.1231, subdivision 3, is amended to read:
Subd. 3.
Disaster or emergency area.
(a) "Disaster or emergency area" means a
geographic area for which:
(1)(i) the president of the United States, the secretary of agriculture, or the administrator
of the Small Business Administration has determined that a disaster exists pursuant to federal
law, or
(ii) a local emergency has been declared pursuant to section 12.29; and
(2) an application by the local unit of government requesting property tax relief under
this section has been received by the governor and approved by the executive council.
(b) The executive council must not approve an application unless:
(1) a completed disaster survey is included; and
(2) within the boundaries of the applicant, (i) the average damage for the buildings that
are damaged is at least $5,000, and (ii) either at least 25 taxable buildings were damaged,
or the total dollar amount of damage to all taxable buildings equals or exceeds one percent
of the total taxable market value of buildings for the applicant as reported to the commissioner
of revenue under section deleted text begin 270C.89, subdivision 2deleted text end new text begin 270C.85, subdivision 2, clause (4)new text end , for the
assessment in the year prior to the year of the damage.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2018, section 273.136, subdivision 2, is amended to read:
Subd. 2.
Reduction amounts submitted to county.
The commissioner of revenue shall
determine, not later than April 1 of each year, the amount of reduction resulting from section
273.135 in each county containing a tax relief area as defined by section 273.134, paragraph
(b), basing determinations on a review of deleted text begin abstracts of tax lists submitted by the county
auditors pursuant to section 275.29deleted text end new text begin information reported to the commissioner under section
270C.85, subdivision 2, clause (4)new text end . The commissioner may make changes deleted text begin in the abstracts
of tax listsdeleted text end as deemed necessary. The commissioner of revenue, after such review, shall
submit to the St. Louis County auditor, on or before April 15, the amount of the first half
payment payable hereunder and on or before September 15 the amount of the second half
payment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 11.
Minnesota Statutes 2018, section 273.1384, subdivision 3, is amended to read:
Subd. 3.
Credit reimbursements.
The county auditor shall determine the tax reductions
allowed under subdivision 2 within the county for each taxes payable year and shall certify
that amount to the commissioner of revenue deleted text begin as a part of the abstracts of tax lists submitted
by the county auditors under section 275.29deleted text end new text begin under section 270C.85, subdivision 2, clause
(4)new text end . Any prior year adjustments shall also be certified deleted text begin on the abstracts of tax listsdeleted text end . The
commissioner shall review the certifications for accuracy, and may make such changes as
are deemed necessary, or return the certification to the county auditor for correction. The
credit under this section must be used to proportionately reduce the net tax capacity-based
property tax payable to each local taxing jurisdiction as provided in section 273.1393.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2018, section 273.1387, subdivision 3, is amended to read:
Subd. 3.
Credit reimbursements.
The county auditor shall determine the tax reductions
allowed under this section within the county for each taxes payable year and shall certify
that amount to the commissioner of revenue deleted text begin as a part of the abstracts of tax lists submitted
under section 275.29deleted text end new text begin under section 270C.85, subdivision 2, clause (4)new text end . Any prior year
adjustments shall also be certified deleted text begin on the abstracts of tax listsdeleted text end . The commissioner shall
review the certifications for accuracy, and may make such changes as are deemed necessary,
or return the certification to the county auditor for correction. The credit under this section
must be used to reduce the school district net tax capacity-based property tax as provided
in section 273.1393.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13.
Minnesota Statutes 2018, section 273.18, is amended to read:
273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT PROPERTY
BY COUNTY AUDITORS.
(a) In every sixth year after the year 2010, the county auditor shall enter the description
of each tract of real property exempt by law from taxation, with the name of the owner, and
the assessor shall value and assess the same in the same manner that other real property is
valued and assessed, and shall designate in each case the purpose for which the property is
used.
(b) deleted text begin For purposes of the apportionment of fire state aid under section 69.021, subdivision
7,deleted text end The county auditor shall include deleted text begin on the abstract of assessment of exempt real property
filed under this sectiondeleted text end new text begin in the exempt property information that the commissioner may
require under section 270C.85, subdivision 2, clause (4)new text end , the total number of acres of all
natural resources lands for which in lieu payments are made under sections 477A.11 to
477A.14. The assessor shall estimate its market value, provided that if the assessor is not
able to estimate the market value of the land on a per parcel basis, the assessor shall furnish
the commissioner of revenue with an estimate of the average value per acre of this land
within the county.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2018, section 274.14, is amended to read:
274.14 LENGTH OF SESSION; RECORD.
The board must meet after the second Friday in June on at least one meeting day and
may meet for up to ten consecutive meeting days. The actual meeting dates must be contained
on the valuation notices mailed to each property owner in the county as provided in section
273.121. For this purpose, "meeting days" is defined as any day of the week excluding
Sunday. At the board's discretion, "meeting days" may include Saturday. No action taken
by the county board of review after June 30 is valid, except for corrections permitted in
sections 273.01 and 274.01. The county auditor shall keep an accurate record of the
proceedings and orders of the board. The record must be published like other proceedings
of county commissioners. A copy of the published record must be sent to the commissioner
of revenuedeleted text begin , with the abstract of assessment required by section 274.16deleted text end new text begin within five days
following final action of the county board of equalizationnew text end .
For counties that conduct either regular board of review meetings or open book meetings,
at least one of the meeting days must include a meeting that does not end before 7:00 p.m.
For counties that require taxpayer appointments for the board of review, appointments must
include some available times that extend until at least 7:00 p.m. The county may have a
Saturday meeting in lieu of, or in addition to, the extended meeting times under this
paragraph.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 15.
Minnesota Statutes 2018, section 274.16, is amended to read:
274.16 CORRECTED LISTSdeleted text begin , ABSTRACTSdeleted text end .
The county assessor or, in Ramsey County, the official designated by the board of county
commissioners shall calculate the changes of the assessment lists determined by the county
board of equalization, and make corrections accordingly, in the real or personal lists, or
both, and shall make deleted text begin duplicate abstractsdeleted text end new text begin duplicatesnew text end of them. One must be filed in the assessor's
office, and one must be forwarded to the commissioner of revenue as provided in section
270C.89.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 16.
Minnesota Statutes 2018, section 275.025, subdivision 1, is amended to read:
Subdivision 1.
Levy amount.
The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy for commercial-industrial property is $784,590,000
for taxes payable in 2018 and thereafter. The state general levy for seasonal-recreational
property is $44,190,000 for taxes payable in 2018 and thereafter. The tax under this section
is not treated as a local tax rate under section 469.177 and is not the levy of a governmental
unit under chapters 276A and 473F.
The commissioner shall increase or decrease the preliminary or final rate for a year as
necessary to account for errors and tax base changes that affected a preliminary or final rate
for either of the two preceding years. Adjustments are allowed to the extent that the necessary
information is available to the commissioner at the time the rates for a year must be certified,
and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported deleted text begin on the abstracts of tax lists submitted under section
275.29 that was not reported on the abstracts of assessment submitted under section 270C.89deleted text end new text begin
to the commissioner under section 270C.85, subdivision 2, clause (4),new text end for the same year.
The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 17.
Minnesota Statutes 2018, section 290B.09, subdivision 1, is amended to read:
Subdivision 1.
Determination; payment.
The county auditor shall determine the total
current year's deferred amount of property tax under this chapter in the county, and deleted text begin submitdeleted text end new text begin
reportnew text end those amounts deleted text begin as part of the abstracts of tax lists submitted by the county auditors
under section 275.29deleted text end new text begin to the commissioner under section 270C.85, subdivision 2, clause (4)new text end .
The commissioner may make changes deleted text begin in the abstracts of tax listsdeleted text end as deemed necessary. The
commissioner of revenue, after such review, shall pay the deferred amount of property tax
to each county treasurer on or before August 31.
The county treasurer shall distribute as part of the October settlement the funds received
as if they had been collected as a part of the property tax.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18.
Minnesota Statutes 2018, section 469.177, subdivision 1, is amended to read:
Subdivision 1.
Original net tax capacity.
(a) Upon or after adoption of a tax increment
financing plan, the auditor of any county in which the district is situated shall, upon request
of the authority, certify the original net tax capacity of the tax increment financing district
and that portion of the district overlying any subdistrict as described in the tax increment
financing plan and shall certify in each year thereafter the amount by which the original net
tax capacity has increased or decreased as a result of a change in tax exempt status of
property within the district and any subdistrict, reduction or enlargement of the district or
changes pursuant to subdivision 4. The auditor shall certify the amount within 30 days after
receipt of the request and sufficient information to identify the parcels included in the district.
The certification relates to the taxes payable year as provided in subdivision 6.
(b) If the classification under section 273.13 of property located in a district changes to
a classification that has a different assessment ratio, the original net tax capacity of that
property must be redetermined at the time when its use is changed as if the property had
originally been classified in the same class in which it is classified after its use is changed.
(c) The amount to be added to the original net tax capacity of the district as a result of
previously tax exempt real property within the district becoming taxable equals the net tax
capacity of the real property as most recently assessed pursuant to deleted text begin section 273.18deleted text end new text begin information
reported to the commissioner under section 270C.85, subdivision 2, clause (4),new text end or, if that
assessment was made more than one year prior to the date of title transfer rendering the
property taxable, the net tax capacity assessed by the assessor at the time of the transfer. If
improvements are made to tax exempt property after the municipality approves the district
and before the parcel becomes taxable, the assessor shall, at the request of the authority,
separately assess the estimated market value of the improvements. If the property becomes
taxable, the county auditor shall add to original net tax capacity, the net tax capacity of the
parcel, excluding the separately assessed improvements. If substantial taxable improvements
were made to a parcel after certification of the district and if the property later becomes tax
exempt, in whole or part, as a result of the authority acquiring the property through
foreclosure or exercise of remedies under a lease or other revenue agreement or as a result
of tax forfeiture, the amount to be added to the original net tax capacity of the district as a
result of the property again becoming taxable is the amount of the parcel's value that was
included in original net tax capacity when the parcel was first certified. The amount to be
added to the original net tax capacity of the district as a result of enlargements equals the
net tax capacity of the added real property as most recently certified by the commissioner
of revenue as of the date of modification of the tax increment financing plan pursuant to
section 469.175, subdivision 4.
(d) If the net tax capacity of a property increases because the property no longer qualifies
under the Minnesota Agricultural Property Tax Law, section 273.111; the Minnesota Open
Space Property Tax Law, section 273.112; or the Metropolitan Agricultural Preserves Act,
chapter 473H, the Rural Preserve Property Tax Program under section 273.114, or because
platted, unimproved property is improved or market value is increased after approval of the
plat under section 273.11, subdivision 14a or 14b, the increase in net tax capacity must be
added to the original net tax capacity. If the net tax capacity of a property increases because
the property no longer qualifies for the homestead market value exclusion under section
273.13, subdivision 35, the increase in net tax capacity must be added to original net tax
capacity if the original construction of the affected home was completed before the date the
assessor certified the original net tax capacity of the district.
(e) The amount to be subtracted from the original net tax capacity of the district as a
result of previously taxable real property within the district becoming tax exempt or
qualifying in whole or part for an exclusion from taxable market value, or a reduction in
the geographic area of the district, shall be the amount of original net tax capacity initially
attributed to the property becoming tax exempt, being excluded from taxable market value,
or being removed from the district. If the net tax capacity of property located within the tax
increment financing district is reduced by reason of a court-ordered abatement, stipulation
agreement, voluntary abatement made by the assessor or auditor or by order of the
commissioner of revenue, the reduction shall be applied to the original net tax capacity of
the district when the property upon which the abatement is made has not been improved
since the date of certification of the district and to the captured net tax capacity of the district
in each year thereafter when the abatement relates to improvements made after the date of
certification. The county auditor may specify reasonable form and content of the request
for certification of the authority and any modification thereof pursuant to section 469.175,
subdivision 4.
(f) If a parcel of property contained a substandard building or improvements described
in section 469.174, subdivision 10, paragraph (e), that were demolished or removed and if
the authority elects to treat the parcel as occupied by a substandard building under section
469.174, subdivision 10, paragraph (b), or by improvements under section 469.174,
subdivision 10, paragraph (e), the auditor shall certify the original net tax capacity of the
parcel using the greater of (1) the current net tax capacity of the parcel, or (2) the estimated
market value of the parcel for the year in which the building or other improvements were
demolished or removed, but applying the classification rates for the current year.
(g) For a redevelopment district qualifying under section 469.174, subdivision 10,
paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of
the land as the original tax capacity for any parcel in the district that contains a building
that suffered substantial damage as a result of the disaster or emergency.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2018, section 275.29,
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 the day following final enactment.
new text end
ARTICLE 18
FIRE STATE AID; TECHNICAL CHANGES
Section 1.
new text begin
[477B.01] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Scope. new text end
new text begin
Unless the language or context clearly indicates that a different
meaning is intended, the following words and terms, for the purposes of this chapter and
chapters 423A and 424A, have the meanings given to them.
new text end
new text begin Subd. 2. new text end
new text begin Commissioner. new text end
new text begin
"Commissioner" means the commissioner of revenue.
new text end
new text begin Subd. 3. new text end
new text begin Company or insurance company. new text end
new text begin
"Company" or "insurance company" has
the meaning given in section 60A.02, subdivision 4.
new text end
new text begin Subd. 4. new text end
new text begin Estimated market value. new text end
new text begin
"Estimated market value" has the meaning given in
section 272.03, subdivision 14.
new text end
new text begin Subd. 5. new text end
new text begin Fire department. new text end
new text begin
"Fire department" includes a municipal fire department and
an independent nonprofit firefighting corporation.
new text end
new text begin Subd. 6. new text end
new text begin Fire department service area. new text end
new text begin
"Fire department service area" means the area
serviced by a qualifying fire department that meets the requirements of section 477B.02.
new text end
new text begin Subd. 7. new text end
new text begin Independent nonprofit firefighting corporation. new text end
new text begin
"Independent nonprofit
firefighting corporation" means an independent nonprofit firefighting corporation that meets
the criteria in section 424A.094, subdivision 1, paragraph (a).
new text end
new text begin Subd. 8. new text end
new text begin Minnesota Fire Premium Report. new text end
new text begin
"Minnesota Fire Premium Report" means
a form for reporting by insurance companies of (1) gross direct fire, lightning, sprinkler
leakage, and extended coverage premiums received upon risks located or to be performed
in this state less return premiums and dividends, and (2) other facts that the commissioner
may require.
new text end
new text begin Subd. 9. new text end
new text begin Municipal clerk. new text end
new text begin
"Municipal clerk" means the person elected or appointed to
the position of municipal clerk or, if there is no such person, the chief financial official, the
chief administrative official, or the person primarily responsible for managing the finances
of a municipality.
new text end
new text begin Subd. 10. new text end
new text begin Municipality. new text end
new text begin
(a) "Municipality" means:
new text end
new text begin
(1) a home rule charter or statutory city;
new text end
new text begin
(2) an organized town;
new text end
new text begin
(3) a park district subject to chapter 398;
new text end
new text begin
(4) the University of Minnesota; and
new text end
new text begin
(5) an American Indian tribal government entity located within a federally recognized
American Indian reservation.
new text end
new text begin
(b) This subdivision only applies to chapter 477B.
new text end
new text begin Subd. 11. new text end
new text begin Secretary. new text end
new text begin
"Secretary" means the secretary of an independent nonprofit
firefighting corporation that has a subsidiary incorporated firefighters' relief association or
whose firefighters participate in the voluntary statewide volunteer firefighter retirement
plan.
new text end
new text begin Subd. 12. new text end
new text begin Voluntary statewide volunteer firefighter retirement plan. new text end
new text begin
"Voluntary
statewide volunteer firefighter retirement plan" means the retirement plan established under
chapter 353G.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 2.
new text begin
[477B.02] QUALIFYING FOR FIRE STATE AID.
new text end
new text begin Subdivision 1. new text end
new text begin Qualifications for fire state aid. new text end
new text begin
A municipality or independent nonprofit
firefighting corporation qualifies to receive fire state aid if all the requirements of this section
are met.
new text end
new text begin Subd. 2. new text end
new text begin Establishment of fire department. new text end
new text begin
(a) An independent nonprofit firefighting
corporation must be created under the nonprofit corporation act of this state operating for
the exclusive purpose of firefighting, or the governing body of a municipality must officially
establish a fire department.
new text end
new text begin
(b) The fire department must have provided firefighting services for at least one calendar
year.
new text end
new text begin Subd. 3. new text end
new text begin Personnel and benefits requirements. new text end
new text begin
(a) A fire department must have a
minimum of ten paid or volunteer firefighters, including a fire chief and assistant fire chief.
new text end
new text begin
(b) The fire department must have regular scheduled meetings and frequent drills that
include instructions in firefighting tactics and in the use, care, and operation of all fire
apparatus and equipment.
new text end
new text begin
(c) The fire department must have a separate subsidiary incorporated firefighters' relief
association that provides retirement benefits or must participate in the voluntary statewide
volunteer firefighter retirement plan; or if the municipality solely employs full-time
firefighters as defined in section 299N.03, subdivision 5, retirement coverage must be
provided by the public employees police and fire retirement plan.
new text end
new text begin
(d) Notwithstanding paragraph (c), a municipality without a relief association as described
under section 424A.08, paragraph (a), may still qualify to receive fire state aid if all other
requirements of this section are met.
new text end
new text begin Subd. 4. new text end
new text begin Equipment requirements. new text end
new text begin
The fire department must have all of the following
equipment, or the equivalent as determined by the state fire marshal, by December 31 of
the year preceding the certification required in subdivision 8:
new text end
new text begin
(1) a motorized fire truck equipped with:
new text end
new text begin
(i) a motorized pump;
new text end
new text begin
(ii) a 250-gallon or larger water tank;
new text end
new text begin
(iii) 300 feet of one inch or larger fire hose in two lines with combination spray and
straight stream nozzles;
new text end
new text begin
(iv) five-gallon hand pumps - tank extinguisher or equivalent;
new text end
new text begin
(v) a dry chemical extinguisher or equivalent;
new text end
new text begin
(vi) ladders;
new text end
new text begin
(vii) extension ladders;
new text end
new text begin
(viii) pike poles;
new text end
new text begin
(ix) crowbars;
new text end
new text begin
(x) axes;
new text end
new text begin
(xi) lanterns; and
new text end
new text begin
(xii) fire coats, helmets, and boots;
new text end
new text begin
(2) the items in clause (1) suitably housed in a building of good construction with facilities
for care of hoses and equipment;
new text end
new text begin
(3) a reliable and adequate method of receiving fire alarms by telephone or with electric
siren and suitable means of sounding an alarm; and
new text end
new text begin
(4) if response is to be provided outside the corporate limits of the municipality where
the fire department is located, another piece of motorized apparatus to make the response.
new text end
new text begin Subd. 5. new text end
new text begin
Fire service contract or agreement; apportionment agreement filing
requirement.
new text end
new text begin
(a) Every municipality or independent nonprofit firefighting corporation must
file a copy of any duly executed and valid fire service contract or agreement with the
commissioner.
new text end
new text begin
(b) If more than one fire department provides service to a municipality, the fire
departments furnishing service must enter into an agreement apportioning among themselves
the percentage of the population and the percentage of the estimated market value of each
shared service fire department service area. The agreement must be in writing and must be
filed with the commissioner.
new text end
new text begin Subd. 6. new text end
new text begin Compliance with rules. new text end
new text begin
The fire department must meet all other requirements
that the commissioner establishes by rule.
new text end
new text begin Subd. 7. new text end
new text begin Financial reporting requirements. new text end
new text begin
The financial reporting requirements of
section 424A.014 must be satisfied.
new text end
new text begin Subd. 8. new text end
new text begin PERA certification to commissioner. new text end
new text begin
On or before February 1 each year, if
retirement coverage for a fire department is provided by the voluntary statewide volunteer
firefighter retirement plan, the executive director of the Public Employees Retirement
Association must certify the existence of retirement coverage.
new text end
new text begin Subd. 9. new text end
new text begin Fire department certification to commissioner. new text end
new text begin
On or before March 15 of
each year, the municipal clerk or the secretary, and the fire chief, must jointly certify to the
commissioner that the fire department exists and meets the qualification requirements of
this section. The certification must be on a form prescribed by the commissioner and must
include all other information that the commissioner requires.
new text end
new text begin Subd. 10. new text end
new text begin Penalty for failure to file certification. new text end
new text begin
(a) If the certification under
subdivision 9 is not filed with the commissioner on or before March 15, the commissioner
must notify the municipal clerk or the secretary that a penalty equal to a portion or all of
the current year aid will apply if the certification is not received within ten days of the
postmark date of the notification.
new text end
new text begin
(b) The penalty for failure to file the certification under subdivision 9 is equal to the
amount of fire state aid determined for the municipality or the independent nonprofit
firefighting corporation for the current year, multiplied by five percent for each week or
fraction of a week that the certification is late. The penalty must be computed beginning
ten days after the postmark date of the commissioner's notification. Aid amounts forfeited
as a result of the penalty revert to the state general fund. Failure to receive the certification
form is not a defense for a failure to file.
new text end
new text begin Subd. 11. new text end
new text begin Determination by commissioner. new text end
new text begin
The commissioner must determine which
municipalities and independent nonprofit firefighting corporations are qualified to receive
fire state aid directly or are qualified to receive the benefit of fire state aid paid to the
voluntary statewide volunteer firefighter retirement plan based on compliance with the
requirements of this section and the financial compliance report required under section
6.495, subdivision 3, if applicable. The commissioner may take into account any other
relevant information that comes to the attention of the commissioner when making the
determination.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 3.
new text begin
[477B.03] CALCULATION OF FIRE STATE AID; APPEAL.
new text end
new text begin Subdivision 1. new text end
new text begin Certification and calculation of fire state aid. new text end
new text begin
(a) On or before October
l, the commissioner must calculate the amount of fire state aid that each municipality or
independent nonprofit firefighting corporation is to receive.
new text end
new text begin
(b) The commissioner must calculate an initial fire state aid allocation amount for each
municipality or independent nonprofit firefighting corporation under subdivision 4 and, if
applicable, a minimum fire state aid allocation amount for each municipality or independent
nonprofit firefighting corporation under subdivision 5. The municipality or independent
nonprofit firefighting corporation must be apportioned the greater of the amounts calculated
under subdivisions 4 and 5.
new text end
new text begin Subd. 2. new text end
new text begin Apportionment of fire state aid. new text end
new text begin
(a) The amount of fire state aid available for
apportionment, before the addition of the minimum fire state aid allocation amount under
subdivision 5, is equal to 107 percent of the amount of premium taxes paid to the state upon
the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the
commissioner by companies or insurance companies on the Minnesota Fire Premium Report.
This amount must be reduced by the amount required to pay the state auditor's costs and
expenses of the audits or exams of the firefighters' relief associations.
new text end
new text begin
(b) The total amount available for apportionment must not be less than two percent of
the premiums less return premiums reported to the commissioner by companies or insurance
companies on the Minnesota Fire Premium Report after subtracting the following amounts:
new text end
new text begin
(1) the amount required to pay the state auditor's costs and expenses of the audits or
exams of the firefighters' relief associations; and
new text end
new text begin
(2) one percent of the premiums reported by township mutual insurance companies and
mutual property and casualty companies with total assets of $5,000,000 or less.
new text end
new text begin
(c) The commissioner must apportion the fire state aid to each municipality or independent
nonprofit firefighting corporation qualified under section 477B.02 relative to the premiums
reported on the Minnesota Fire Premium Reports filed under this chapter.
new text end
new text begin
(d) The commissioner must calculate the percentage of increase or decrease reflected in
the apportionment over or under the previous year's available state aid using the same
premiums as a basis for comparison.
new text end
new text begin Subd. 3. new text end
new text begin Population and estimated market value. new text end
new text begin
(a) Official statewide federal census
figures must be used in calculations requiring the use of population figures under this chapter.
Increases or decreases in population disclosed by reason of any special census must not be
taken into consideration.
new text end
new text begin
(b) The latest available estimated market value property figures must be used in
calculations requiring the use of estimated market value property figures under this chapter.
new text end
new text begin Subd. 4. new text end
new text begin Initial fire state aid allocation amount. new text end
new text begin
(a) The initial fire state aid allocation
amount is the amount available for apportionment as fire state aid under subdivision 2,
without the inclusion of any additional funding amount to support a minimum fire state aid
amount under section 423A.02, subdivision 3. The initial fire state aid allocation amount
is allocated one-half in proportion to the population for each fire department service area
and one-half in proportion to the estimated market value of each fire department service
area, including (1) the estimated market value of tax-exempt property, and (2) the estimated
market value of natural resources lands receiving in lieu payments under sections 477A.11
to 477A.14 and 477A.17. The estimated market value of minerals is excluded.
new text end
new text begin
(b) In the case of a municipality or independent nonprofit firefighting corporation
furnishing fire protection to other municipalities as evidenced by valid fire service contracts
filed with the commissioner under section 477B.02, subdivision 5, the distribution must be
adjusted proportionately to take into consideration the crossover fire protection service.
Necessary adjustments must be made to subsequent apportionments.
new text end
new text begin
(c) In the case of municipalities or independent nonprofit firefighting corporations
qualifying for aid, the commissioner must calculate the state aid for the municipality or
independent nonprofit firefighting corporation on the basis of the population and the estimated
market value of the area furnished fire protection service by the fire department as evidenced
by fire service agreements filed with the commissioner under section 477B.02, subdivision
5.
new text end
new text begin
(d) In the case of more than one fire department furnishing contracted fire service to a
municipality, the population and estimated market value in the apportionment agreement
filed with the commissioner under section 477B.02, subdivision 5, must be used in calculating
the state aid.
new text end
new text begin Subd. 5. new text end
new text begin Minimum fire state aid allocation amount. new text end
new text begin
(a) The minimum fire state aid
allocation amount is the amount derived from any additional funding amount to support a
minimum fire state aid amount under section 423A.02, subdivision 3. The minimum fire
state aid allocation amount is allocated to municipalities or independent nonprofit firefighting
corporations with volunteer firefighters' relief associations or covered by the voluntary
statewide volunteer firefighter retirement plan. The amount is based on the number of active
volunteer firefighters who are (1) members of the relief association as reported to the Office
of the State Auditor in a specific annual financial reporting year as specified in paragraphs
(b) to (d), or (2) covered by the voluntary statewide volunteer firefighter retirement plan as
specified in paragraph (e).
new text end
new text begin
(b) For relief associations established in calendar year 1993 or a prior year, the number
of active volunteer firefighters equals the number of active volunteer firefighters who were
members of the relief association as reported in the annual financial reporting for calendar
year 1993, but not to exceed 30 active volunteer firefighters.
new text end
new text begin
(c) For relief associations established in calendar year 1994 through calendar year 1999,
the number of active volunteer firefighters equals the number of active volunteer firefighters
who were members of the relief association as reported in the annual financial reporting for
calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer
firefighters.
new text end
new text begin
(d) For relief associations established after calendar year 1999, the number of active
volunteer firefighters equals the number of active volunteer firefighters who are members
of the relief association as reported in the first annual financial reporting submitted to the
Office of the State Auditor, but not to exceed 20 active volunteer firefighters.
new text end
new text begin
(e) If a relief association is terminated as a result of providing retirement coverage for
volunteer firefighters by the voluntary statewide volunteer firefighter retirement plan under
chapter 353G, the number of active volunteer firefighters equals the number of active
volunteer firefighters of the municipality or independent nonprofit firefighting corporation
covered by the statewide plan as certified by the executive director of the Public Employees
Retirement Association to the commissioner and the state auditor, but not to exceed 30
active firefighters.
new text end
new text begin Subd. 6. new text end
new text begin Corrective aid adjustments. new text end
new text begin
Any adjustments needed to correct prior
misallocations must be made to subsequent fire state aid apportionments.
new text end
new text begin Subd. 7. new text end
new text begin Appeal. new text end
new text begin
A municipality, an independent nonprofit firefighting corporation, a
fire relief association, or the voluntary statewide volunteer firefighter retirement plan may
object to the amount of fire state aid apportioned to it by filing a written request with the
commissioner to review and adjust the apportionment of funds within the state. The decision
of the commissioner is subject to appeal, review, and adjustment by the district court in the
county in which the applicable municipality or independent nonprofit firefighting corporation
is located or by the Ramsey County District Court with respect to the voluntary statewide
volunteer firefighter retirement plan.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 4.
new text begin
[477B.04] APPROPRIATION, PAYMENT, AND ADMINISTRATION.
new text end
new text begin Subdivision 1. new text end
new text begin Payments. new text end
new text begin
(a) The commissioner must make payments to the Public
Employees Retirement Association for deposit in the voluntary statewide volunteer firefighter
retirement fund on behalf of a municipality or independent nonprofit firefighting corporation
that is a member of the voluntary statewide volunteer firefighter retirement plan under
chapter 353G, or directly to a municipality or county designated by an independent nonprofit
firefighting corporation. The payment is equal to the amount of fire state aid apportioned
to the applicable fire state aid recipient under section 477B.03.
new text end
new text begin
(b) Fire state aid is payable on October 1 annually. The amount of state aid due and not
paid by October 1 accrues interest payable to the recipient at the rate of one percent for each
month or part of a month that the amount remains unpaid after October 1.
new text end
new text begin
(c) The interest under paragraph (b) does not apply when payment has not been made
by October 1 due to noncompliance with sections 424A.014 and 477B.02, subdivision 7.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount necessary to make the payments under this section
and section 477B.03 is annually appropriated to the commissioner from the general fund.
new text end
new text begin Subd. 3. new text end
new text begin Deposit of state aid. new text end
new text begin
(a) If the municipality or the independent nonprofit
firefighting corporation is covered by the voluntary statewide volunteer firefighter retirement
plan under chapter 353G, the executive director of the Public Employees Retirement
Association must credit the fire state aid against future municipal contribution requirements
under section 353G.08 and must notify the municipality or the independent nonprofit
firefighting corporation of the fire state aid so credited at least annually.
new text end
new text begin
(b) If the municipality or the independent nonprofit firefighting corporation is not covered
by the voluntary statewide volunteer firefighter retirement plan, the treasurer of the
municipality must, within 30 days after receipt, transmit the fire state aid to the treasurer
of the duly incorporated firefighters' relief association if there is one organized and the
association has filed a financial report with the municipality pursuant to section 424A.014,
subdivision 1 or 2, whichever applies. If the relief association has not filed a financial report
with the municipality, the treasurer of the municipality must delay transmission of the fire
state aid to the relief association until the complete financial report is filed.
new text end
new text begin
(c) The treasurer of the municipality must deposit the fire state aid money in the municipal
treasury if (1) the municipality or independent nonprofit firefighting corporation is not
covered by the voluntary statewide volunteer firefighter retirement plan, (2) there is no
relief association organized, (3) the association has dissolved, or (4) the association has
been removed as trustees of state aid. The money may be disbursed from the municipal
treasury only for the purposes and in the manner set forth in section 424A.08 or for the
payment of the employer contribution requirement with respect to firefighters covered by
the public employees police and fire retirement plan under section 353.65, subdivision 3.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 5.
new text begin
[477B.05] SHORTFALL FROM GENERAL FUND.
new text end
new text begin
(a) If the annual funding requirements of fire relief associations or consolidation accounts
under sections 424A.091 to 424A.095 or Laws 2013, chapter 111, article 5, sections 31 to
42, exceed all applicable revenue sources of a given year, including the insurance premium
taxes funding fire state aid under this chapter as set under section 297I.05, subdivisions 2,
3, and 4, the shortfall in the annual funding requirements must be paid from the general
fund to the extent appropriated by the legislature.
new text end
new text begin
(b) Nothing in this section relieves any municipality from its obligation to a relief
association or consolidation account under law.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 6. new text begin PURPOSE.
new text end
new text begin
It is the intent of the legislature to make Minnesota's fire and police state aid laws more
understandable by separating and recodifying disparate administration and compliance
provisions currently contained in chapter 69 of Minnesota Statutes. Due to the complexity
of the recodification, prior provisions are repealed on the effective date of the new provisions.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 7. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2018, sections 69.011, subdivisions 1, 2, 2b, 2c, 3, and 4; 69.021,
subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, and 11; 69.031, subdivisions 1, 3, and 5; and 69.041,
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 2020 and thereafter.
new text end
ARTICLE 19
POLICE STATE AID; TECHNICAL CHANGES
Section 1.
new text begin
[477C.01] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Scope. new text end
new text begin
Unless the language or context clearly indicates that a different
meaning is intended, the following words and terms, for the purposes of this chapter and
chapter 423A have the meanings given to them.
new text end
new text begin Subd. 2. new text end
new text begin Commissioner. new text end
new text begin
"Commissioner" means the commissioner of revenue.
new text end
new text begin Subd. 3. new text end
new text begin Company or insurance company. new text end
new text begin
"Company" or "insurance company" has
the meaning given in section 60A.02, subdivision 4.
new text end
new text begin Subd. 4. new text end
new text begin Minnesota Aid to Police Premium Report. new text end
new text begin
"Minnesota Aid to Police Premium
Report" means a form for reporting the total gross premiums, less return premiums and
dividends, on all direct business received by an insurance company in this state during the
preceding calendar year, with reference to insurance written for perils contained in auto
insurance coverages as reported to the National Association of Insurance Commissioners
and the commissioner of commerce.
new text end
new text begin Subd. 5. new text end
new text begin Municipal clerk, municipal clerk-treasurer, or county auditor. new text end
new text begin
"Municipal
clerk," "municipal clerk-treasurer," or "county auditor" means:
new text end
new text begin
(1) the person elected or appointed to the position of municipal clerk, municipal
clerk-treasurer, or county auditor or, if there is no such person, the chief financial official
or the person primarily responsible for managing the finances of a municipality;
new text end
new text begin
(2) for a park district, the secretary of the board of park district commissioners;
new text end
new text begin
(3) for the University of Minnesota, the official designated by the Board of Regents;
new text end
new text begin
(4) for the Metropolitan Airports Commission, the person designated by the commission;
new text end
new text begin
(5) for the Departments of Natural Resources and Public Safety, the respective
commissioner of the agency; and
new text end
new text begin
(6) for a tribal police department that exercises state arrest powers under section 626.90,
626.91, 626.92, or 626.93, the person designated by the applicable American Indian tribal
government.
new text end
new text begin Subd. 6. new text end
new text begin Municipality. new text end
new text begin
(a) "Municipality" means:
new text end
new text begin
(1) a home rule charter or statutory city;
new text end
new text begin
(2) an organized town;
new text end
new text begin
(3) a county;
new text end
new text begin
(4) a park district subject to chapter 398;
new text end
new text begin
(5) the University of Minnesota;
new text end
new text begin
(6) an American Indian tribal government with a tribal police department that exercises
state arrest powers under section 626.90, 626.91, 626.92, or 626.93;
new text end
new text begin
(7) the Metropolitan Airports Commission; and
new text end
new text begin
(8) the Departments of Natural Resources and Public Safety with respect to peace officers
covered under chapter 352B.
new text end
new text begin
(b) This subdivision only applies to chapter 477C.
new text end
new text begin Subd. 7. new text end
new text begin Peace officer. new text end
new text begin
"Peace officer" means any person:
new text end
new text begin
(1) whose primary source of income derived from wages is from direct employment by
a municipality as a law enforcement officer on a full-time basis of not less than 30 hours
per week;
new text end
new text begin
(2) who has been employed for a minimum of six months before December 31 preceding
the date of the current year's certification under section 477C.02, subdivision 1;
new text end
new text begin
(3) who is sworn to enforce the general criminal laws of the state and local ordinances;
new text end
new text begin
(4) who is licensed by the Peace Officers Standards and Training Board and is authorized
to arrest with a warrant; and
new text end
new text begin
(5) who is a member of the State Patrol retirement plan or the public employees police
and fire fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 2.
new text begin
[477C.02] QUALIFYING FOR POLICE STATE AID.
new text end
new text begin Subdivision 1. new text end
new text begin Certification to commissioner. new text end
new text begin
(a) A certification made under this
section must be filed with the commissioner on a form prescribed by the commissioner and
must include all other facts that the commissioner requires.
new text end
new text begin
(b) Except as provided in subdivision 2, on or before March 15 annually, the municipal
clerk, municipal clerk-treasurer, or county auditor of each municipality employing one or
more peace officers must certify to the commissioner the number of peace officers employed
during the previous calendar year. No peace officer may be included in the certification by
more than one municipality for the same month.
new text end
new text begin
(c) Credit for peace officers employed less than a full year must be apportioned. Each
full month of employment of a qualifying officer during the calendar year entitles the
employing municipality to credit for 1/12 of the payment for employment of a peace officer
for the entire year. For purposes of this chapter, employment of a peace officer begins when
the peace officer is entered on the payroll of the employing municipality.
new text end
new text begin Subd. 2. new text end
new text begin Departments of Natural Resources and Public Safety. new text end
new text begin
On or before March
15 annually, the commissioner of natural resources must certify the number of peace officers
employed by the Enforcement Division and the commissioner of public safety must certify
the number of peace officers employed by the Bureau of Criminal Apprehension, the
Gambling Enforcement Division, and the State Patrol Division. The certification must be
on the form described in subdivision 1, paragraph (a). Peace officers certified under this
subdivision must be included in the total certifications under subdivision 1.
new text end
new text begin Subd. 3. new text end
new text begin Ineligibility of certain peace officers. new text end
new text begin
A peace officer employed by the
University of Minnesota who is required by the Board of Regents to be a member of the
University of Minnesota faculty retirement plan is not eligible to be included in any police
state aid certification under this section.
new text end
new text begin Subd. 4. new text end
new text begin Penalty for failure to file certification. new text end
new text begin
(a) If a certification under subdivision
1 or 2 is not filed with the commissioner on or before March 15, the commissioner must
notify the municipal clerk, municipal clerk-treasurer, or county auditor that a penalty equal
to a portion or all of its current year aid will apply if the certification is not received within
ten days.
new text end
new text begin
(b) The penalty for failure to file the certification under subdivision 1 or 2 is equal to
the amount of police state aid determined for the municipality for the current year, multiplied
by five percent for each week or fraction of a week that the certification is late. The penalty
must be computed beginning ten days after the postmark date of the commissioner's
notification as required under this subdivision. All aid amounts forfeited as a result of the
penalty revert to the state general fund. Failure to receive the certification form may not be
used as a defense for a failure to file.
new text end
new text begin Subd. 5. new text end
new text begin Determination by commissioner. new text end
new text begin
The commissioner must determine which
municipalities are qualified to receive police state aid based on compliance with the
requirements of this section. The commissioner may take into account any other relevant
information that comes to the attention of the commissioner when making the determination.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 3.
new text begin
[477C.03] CALCULATION OF POLICE STATE AID; APPEAL.
new text end
new text begin Subdivision 1. new text end
new text begin Certification and calculation of police state aid. new text end
new text begin
(a) On or before
October 1, the commissioner must calculate the amount of police state aid that each
municipality is to receive.
new text end
new text begin
(b) The commissioner must calculate an excess police state aid amount for each
municipality under subdivision 3 and must reduce the apportionment amount for each
municipality based on the calculation.
new text end
new text begin Subd. 2. new text end
new text begin Apportionment of police state aid. new text end
new text begin
(a) The total amount available for
apportionment as police state aid is equal to 104 percent of the amount of premium taxes
paid to the state on the premiums reported to the commissioner by companies or insurance
companies on the Minnesota Aid to Police Premium Report. The total amount for
apportionment for the police state aid program must not be less than two percent of the
amount of premiums reported to the commissioner by companies or insurance companies
on the Minnesota Aid to Police Premium Report.
new text end
new text begin
(b) The commissioner must calculate the percentage of increase or decrease reflected in
the apportionment over or under the previous year's available state aid using the same
premiums as a basis for comparison.
new text end
new text begin
(c) In addition to the amount for apportionment of police state aid under paragraph (a),
each year $100,000 must be apportioned for police state aid. An amount sufficient to pay
this increase is annually appropriated from the general fund.
new text end
new text begin
(d) The commissioner must apportion police state aid to all municipalities in proportion
to the relationship that the total number of peace officers employed by that municipality for
the prior calendar year and the proportional or fractional number who were employed less
than a calendar year as credited under section 477C.02, subdivision 1, paragraph (c), bears
to the total number of peace officers employed by all municipalities subject to any reduction
under subdivision 3.
new text end
new text begin
(e) Any necessary additional adjustments must be made to subsequent police state aid
apportionments.
new text end
new text begin Subd. 3. new text end
new text begin Apportionment reduction; excess police state aid. new text end
new text begin
(a) The commissioner
must reduce the apportionment of police state aid under this section for eligible municipalities
by the amount of any excess police state aid calculated under this subdivision.
new text end
new text begin
(b) The commissioner must calculate the amount of excess police state aid for each
municipality as follows:
new text end
new text begin
(1) for municipalities in which police retirement coverage is provided wholly by the
public employees police and fire fund and all peace officers are members of the plan governed
by sections 353.63 to 353.657, the excess police state aid amount equals the amount of
police state aid apportioned under subdivision 2 that exceeds the employer's total prior
calendar year obligation as defined in paragraph (c), as certified by the executive director
of the Public Employees Retirement Association;
new text end
new text begin
(2) for the Metropolitan Airports Commission, the excess police state aid amount equals
the amount of apportioned police aid calculated under subdivision 2 that exceeds the
commission's total prior calendar year obligation as defined in paragraph (c), as certified
by the executive director of the Public Employees Retirement Association; and
new text end
new text begin
(3) for the Departments of Natural Resources and Public Safety, the excess police state
aid amount equals the amount of apportioned police aid calculated under subdivision 2 that
exceeds the employer's total prior calendar year obligation under section 352B.02, subdivision
1c, for plan members who are peace officers, as certified by the executive director of the
Minnesota State Retirement System.
new text end
new text begin
(c) The municipality's total prior calendar year obligation with respect to the public
employees police and fire plan under paragraph (b), clause (1), is the total prior calendar
year obligation under section 353.65, subdivision 3, for police officers as defined in section
353.64, subdivisions 1, la, and 2, and the actual total prior calendar year obligation under
section 353.65, subdivision 3, for firefighters, as defined in section 353.64, subdivisions 1,
la, and 2, but not to exceed for those firefighters the applicable following employer calendar
year amount:
new text end
|
new text begin
Municipality new text end |
new text begin
Maximum Amount new text end |
||
|
new text begin
Albert Lea new text end |
new text begin
$54,157.01 new text end |
||
|
new text begin
Anoka new text end |
new text begin
10,399.31 new text end |
||
|
new text begin
Apple Valley new text end |
new text begin
5,442.44 new text end |
||
|
new text begin
Austin new text end |
new text begin
49,864.73 new text end |
||
|
new text begin
Bemidji new text end |
new text begin
27,671.38 new text end |
||
|
new text begin
Brooklyn Center new text end |
new text begin
6,605.92 new text end |
||
|
new text begin
Brooklyn Park new text end |
new text begin
24,002.26 new text end |
||
|
new text begin
Burnsville new text end |
new text begin
15,956.00 new text end |
||
|
new text begin
Cloquet new text end |
new text begin
4,260.49 new text end |
||
|
new text begin
Coon Rapids new text end |
new text begin
39,920.00 new text end |
||
|
new text begin
Cottage Grove new text end |
new text begin
8,588.48 new text end |
||
|
new text begin
Crystal new text end |
new text begin
5,855.00 new text end |
||
|
new text begin
East Grand Forks new text end |
new text begin
51,009.88 new text end |
||
|
new text begin
Edina new text end |
new text begin
32,251.00 new text end |
||
|
new text begin
Elk River new text end |
new text begin
5,216.55 new text end |
||
|
new text begin
Ely new text end |
new text begin
13,584.16 new text end |
||
|
new text begin
Eveleth new text end |
new text begin
16,288.27 new text end |
||
|
new text begin
Fergus Falls new text end |
new text begin
6,742.00 new text end |
||
|
new text begin
Fridley new text end |
new text begin
33,420.64 new text end |
||
|
new text begin
Golden Valley new text end |
new text begin
11,744.61 new text end |
||
|
new text begin
Hastings new text end |
new text begin
16,561.00 new text end |
||
|
new text begin
Hopkins new text end |
new text begin
4,324.23 new text end |
||
|
new text begin
International Falls new text end |
new text begin
14,400.69 new text end |
||
|
new text begin
Lakeville new text end |
new text begin
782.35 new text end |
||
|
new text begin
Lino Lakes new text end |
new text begin
5,324.00 new text end |
||
|
new text begin
Little Falls new text end |
new text begin
7,889.41 new text end |
||
|
new text begin
Maple Grove new text end |
new text begin
6,707.54 new text end |
||
|
new text begin
Maplewood new text end |
new text begin
8,476.69 new text end |
||
|
new text begin
Minnetonka new text end |
new text begin
10,403.00 new text end |
||
|
new text begin
Montevideo new text end |
new text begin
1,307.66 new text end |
||
|
new text begin
Moorhead new text end |
new text begin
68,069.26 new text end |
||
|
new text begin
New Hope new text end |
new text begin
6,739.72 new text end |
||
|
new text begin
North St. Paul new text end |
new text begin
4,241.14 new text end |
||
|
new text begin
Northfield new text end |
new text begin
770.63 new text end |
||
|
new text begin
Owatonna new text end |
new text begin
37,292.67 new text end |
||
|
new text begin
Plymouth new text end |
new text begin
6,754.71 new text end |
||
|
new text begin
Red Wing new text end |
new text begin
3,504.01 new text end |
||
|
new text begin
Richfield new text end |
new text begin
53,757.96 new text end |
||
|
new text begin
Rosemount new text end |
new text begin
1,712.55 new text end |
||
|
new text begin
Roseville new text end |
new text begin
9,854.51 new text end |
||
|
new text begin
St. Anthony new text end |
new text begin
33,055.00 new text end |
||
|
new text begin
St. Louis Park new text end |
new text begin
53,643.11 new text end |
||
|
new text begin
Thief River Falls new text end |
new text begin
28,365.04 new text end |
||
|
new text begin
Virginia new text end |
new text begin
31,164.46 new text end |
||
|
new text begin
Waseca new text end |
new text begin
11,135.17 new text end |
||
|
new text begin
West St. Paul new text end |
new text begin
15,707.20 new text end |
||
|
new text begin
White Bear Lake new text end |
new text begin
6,521.04 new text end |
||
|
new text begin
Woodbury new text end |
new text begin
3,613.00 new text end |
||
|
new text begin
any other municipality new text end |
new text begin
0.00 new text end |
new text begin
(d) The total amount of excess police state aid must be deposited in the excess police
state aid account in the general fund, and administered and distributed as provided in
subdivision 4.
new text end
new text begin Subd. 4. new text end
new text begin Excess police state aid holding account. new text end
new text begin
(a) The excess police state aid holding
account is established in the general fund. The excess police state aid holding account is
administered by the commissioner.
new text end
new text begin
(b) Excess police state aid determined under subdivision 3 must be deposited annually
in the excess police state aid holding account.
new text end
new text begin
(c) From the balance in the excess police state aid holding account, $900,000 must be
canceled annually to the general fund.
new text end
new text begin
(d) On October 1 annually, one-half of the balance of the excess police state aid holding
account remaining after the deduction under paragraph (c) is appropriated for additional
amortization aid under section 423A.02, subdivision 1b.
new text end
new text begin
(e) The remaining balance in the excess police state aid holding account, after the
deductions under paragraphs (c) and (d), must be canceled annually to the general fund.
new text end
new text begin Subd. 5. new text end
new text begin Appeal. new text end
new text begin
A municipality may object to the amount of police state aid apportioned
to it by filing a written request with the commissioner to review and adjust the apportionment
of funds to the municipality. The decision of the commissioner is subject to appeal, review,
and adjustment by the district court in the county in which the applicable municipality is
located or by the Ramsey County District Court with respect to the Departments of Natural
Resources or Public Safety.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 4.
new text begin
[477C.04] APPROPRIATION, PAYMENT, AND ADMINISTRATION.
new text end
new text begin Subdivision 1. new text end
new text begin Payments. new text end
new text begin
(a) The commissioner must make payments to the municipality
equal to the amount of police state aid apportioned to the applicable state aid recipient under
section 477C.03.
new text end
new text begin
(b) Police state aid is payable on October 1 annually. The amount of state aid due and
not paid by October 1 accrues interest payable to the recipient at the rate of one percent for
each month or part of a month that the amount remains unpaid after October 1.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
(a) The amount necessary to make the payments under this
section and section 477C.03 is annually appropriated to the commissioner from the general
fund.
new text end
new text begin
(b) The police state aid apportioned to the Departments of Public Safety and Natural
Resources under section 477C.03 is allocated to the commissioner of management and
budget for transfer to the funds and accounts from which the salaries of peace officers
certified under section 477C.02, subdivision 2, are paid. On or before October l, the
commissioner of revenue must certify to the commissioners of public safety, natural
resources, and management and budget the amounts to be transferred from the appropriation
for police state aid. The commissioners of public safety and natural resources must certify
to the commissioner of management and budget the amounts to be credited to each of the
funds and accounts from which the peace officers employed by their respective departments
are paid.
new text end
new text begin Subd. 3. new text end
new text begin Deposit of state aid. new text end
new text begin
(a) For a municipality in which police retirement coverage
is provided by the public employees police and fire fund and all peace officers are members
of the fund, including municipalities covered by section 353.665, the total state aid must
be applied toward the municipality's employer contribution to the public employees police
and fire fund under sections 353.65, subdivision 3, and 353.665, subdivision 8.
new text end
new text begin
(b) The county treasurer, upon receipt of the police state aid for the county, must apply
the total state aid toward the county's employer contribution to the public employees police
and fire fund under section 353.65, subdivision 3.
new text end
new text begin
(c) The designated Metropolitan Airports Commission official, upon receipt of the police
state aid for the Metropolitan Airports Commission, must apply the total police state aid
toward the commission's employer contribution for peace officers to the public employees
police and fire plan under section 353.65, subdivision 3.
new text end
new text begin
(d) The commissioners of public safety and natural resources must allocate the police
state aid first for employer contributions funded from the general fund and then for employer
contributions funded from other funds. For peace officers employed by the Departments of
Natural Resources or Public Safety whose salaries are paid from the general fund, the
amounts transferred from the appropriation for police state aid must be canceled to the
general fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
ARTICLE 20
FIRE AND POLICE STATE AID; MISCELLANEOUS TECHNICAL CHANGES
Section 1.
new text begin
[297I.26] FIRE AND POLICE PREMIUM REPORTS.
new text end
new text begin Subdivision 1. new text end
new text begin Filing reports. new text end
new text begin
(a) Each company must file with the commissioner the
reports defined in sections 477B.01, subdivision 8, and 477C.01, subdivision 4, signed by
the authorized representative of the company, on or before March 1 annually. The fire and
extended coverage portion of multiperil package premiums and all other combination
premiums must be determined by applying percentages determined by the commissioner
or by rating bureaus recognized by the commissioner. The commissioner shall prescribe
the content, form, and manner of the reports.
new text end
new text begin
(b) The commissioner must notify each company that fails to timely file the report
required under paragraph (a). The notice must demand that the company file the report
within 30 days. Where good cause exists, the commissioner may extend the period for filing
the report as long as a request for extension is filed by the company before the expiration
of the 30-day period.
new text end
new text begin Subd. 2. new text end
new text begin Penalties. new text end
new text begin
(a) A company that fails to file the report on or before the due date
in subdivision 1 is liable for a penalty equal to $25 for each seven days, or fraction thereof,
that the report is delinquent, but not to exceed $200.
new text end
new text begin
(b) Any person whose duty it is to file the report and who fails or refuses to file within
30 days after the postmark of the notice in subdivision 1 must be fined an amount of no
more than $1,000.
new text end
new text begin
(c) Any company that knowingly makes and files an inaccurate or false report is liable
for a fine in an amount not less than $25 nor more than $1,000, as determined by the
commissioner, and the commissioner of commerce may revoke the company's certificate
of authority.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for reports filed after December 31, 2019.
new text end
Sec. 2.
new text begin
[424A.014] FINANCIAL REPORT; BOND; EXAMINATION.
new text end
new text begin Subdivision 1. new text end
new text begin Financial report and audit. new text end
new text begin
(a) The board of the Bloomington Fire
Department Relief Association and each volunteer firefighters relief association with assets
of at least $500,000 or liabilities of at least $500,000 in the prior year or in any previous
year, according to the applicable actuarial valuation or according to the financial report if
no valuation is required, must prepare a financial report covering the special and general
funds of the relief association for the preceding fiscal year, file the financial report, and
submit financial statements.
new text end
new text begin
(b) The financial report must contain financial statements and disclosures that present
the true financial condition of the relief association and the results of relief association
operations in conformity with generally accepted accounting principles and in compliance
with the regulatory, financing, and funding provisions of this chapter and any other applicable
laws. The financial report must be countersigned by:
new text end
new text begin
(1) the municipal clerk or clerk-treasurer of the municipality in which the relief
association is located if the relief association is a firefighters' relief association that is directly
associated with a municipal fire department;
new text end
new text begin
(2) the municipal clerk or clerk-treasurer of the largest municipality in population that
contracts with the independent nonprofit firefighting corporation if the volunteer firefighter
relief association is a subsidiary of an independent nonprofit firefighting corporation, and
by the secretary of the independent nonprofit firefighting corporation; or
new text end
new text begin
(3) the chief financial official of the county in which the volunteer firefighter relief
association is located or primarily located if the relief association is associated with a fire
department that is not located in or associated with an organized municipality.
new text end
new text begin
(c) The financial report must be retained in the office of the Bloomington Fire Department
Relief Association or the volunteer firefighter relief association for public inspection and
must be filed with the governing body of the government subdivision in which the associated
fire department is located after the close of the fiscal year. One copy of the financial report
must be furnished to the state auditor after the close of the fiscal year.
new text end
new text begin
(d) Audited financial statements must be attested to by a certified public accountant or
by the state auditor and must be filed with the state auditor on or before June 30 after the
close of the fiscal year. The state auditor may accept this report in lieu of the report required
in paragraph (c).
new text end
new text begin Subd. 2. new text end
new text begin Financial statement. new text end
new text begin
(a) The board of each volunteer firefighter relief
association that is not required to file a financial report and audit under subdivision 1 must
prepare a detailed statement of the financial affairs for the preceding fiscal year of the relief
association's special and general funds in the style and form prescribed by the state auditor.
The detailed statement must show:
new text end
new text begin
(1) the sources and amounts of all money received;
new text end
new text begin
(2) all disbursements, accounts payable, and accounts receivable;
new text end
new text begin
(3) the amount of money remaining in the treasury;
new text end
new text begin
(4) total assets, including a listing of all investments;
new text end
new text begin
(5) the accrued liabilities; and
new text end
new text begin
(6) all other items necessary to show accurately the revenues and expenditures and
financial position of the relief association.
new text end
new text begin
(b) The detailed financial statement of the special and general funds required under
paragraph (a) must be certified by a certified public accountant or by the state auditor in
accordance with agreed-upon procedures and forms prescribed by the state auditor. The
accountant must have at least five years of public accounting, auditing, or similar experience
and must not be an active, inactive, or retired member of the relief association or the fire
department.
new text end
new text begin
(c) The detailed financial statement required under paragraph (a) must be countersigned
by:
new text end
new text begin
(1) the municipal clerk or clerk-treasurer of the municipality;
new text end
new text begin
(2) where applicable, the municipal clerk or clerk-treasurer of the largest municipality
in population that contracts with the independent nonprofit firefighting corporation if the
relief association is a subsidiary of an independent nonprofit firefighting corporation, and
by the secretary of the independent nonprofit firefighting corporation; or
new text end
new text begin
(3) the chief financial official of the county in which the volunteer firefighter relief
association is located or primarily located if the relief association is associated with a fire
department that is not located in or associated with an organized municipality.
new text end
new text begin
(d) The volunteer firefighters relief association board must submit a copy of the detailed
financial statement required under paragraph (a) that has been certified by the governing
body of the municipality to the state auditor on or before March 31 after the close of the
fiscal year.
new text end
new text begin
(e) A certified public accountant or auditor who performs the agreed-upon procedures
under paragraph (b) is subject to the reporting requirement of section 6.67.
new text end
new text begin Subd. 3. new text end
new text begin Qualification. new text end
new text begin
The state auditor may, upon a demonstration by a relief
association of hardship or an inability to conform, extend the deadline for reports under
subdivision 1 or 2, but not beyond November 30 following the due date. If the reports are
not received by November 30, the municipality or relief association forfeits its current year
state aid, and, until the state auditor receives the required information, the relief association
or municipality is ineligible to receive any future state aid. A municipality or relief association
does not qualify initially to receive, or be entitled subsequently to retain, fire state aid and
police and firefighter retirement supplemental state aid payable under chapter 477B and
section 423A.022 if the financial reporting requirement or the applicable requirements of
this chapter or any other statute or special law have not been complied with or are not
fulfilled.
new text end
new text begin Subd. 4. new text end
new text begin Treasurer bond. new text end
new text begin
(a) The treasurer of the Bloomington Fire Department Relief
Association may not enter upon duties without having given the association a bond in a
reasonable amount acceptable to the municipality for the faithful discharge of duties
according to law.
new text end
new text begin
(b) No treasurer of a relief association governed by sections 424A.091 to 424A.096 may
enter upon the duties of the office until the treasurer has given the association a good and
sufficient bond in an amount equal to at least ten percent of the assets of the relief association;
however, the amount of the bond need not exceed $500,000.
new text end
new text begin Subd. 5. new text end
new text begin Report by certain municipalities; exceptions. new text end
new text begin
(a) The chief administrative
officer of each municipality that has a fire department but does not have a relief association
governed by sections 424A.091 to 424A.095 or Laws 2014, chapter 275, article 2, section
23, and that is not exempted under paragraph (b) or (c) must annually prepare a detailed
financial report of the receipts and disbursements by the municipality for fire protection
service during the preceding calendar year on a form prescribed by the state auditor. The
financial report must contain any information that the state auditor deems necessary to
disclose the sources of receipts and the purpose of disbursements for fire protection service.
The financial report must be signed by the municipal clerk or clerk-treasurer with the state
auditor on or before July 1 annually. The municipality does not qualify initially to receive,
and is not entitled subsequently to retain, any fire state aid and police and firefighter
retirement supplemental state aid payable under chapter 477B and section 423A.022 if the
financial reporting requirement or the applicable requirements of any other statute or special
law have not been complied with or are not fulfilled.
new text end
new text begin
(b) Each municipality that has a fire department and provides retirement coverage to its
firefighters through the voluntary statewide volunteer firefighter retirement plan under
chapter 353G qualifies to have fire state aid transmitted to and retained in the statewide
volunteer firefighter retirement fund without filing a detailed financial report if the executive
director of the Public Employees Retirement Association certifies compliance by the
municipality with the requirements of sections 353G.04 and 353G.08, subdivision 1,
paragraph (e), and certifies conformity by the applicable fire chief with the requirements
of section 353G.07.
new text end
new text begin
(c) Each municipality qualifies to receive fire state aid under chapter 477B without filing
a financial report under paragraph (a) if the municipality:
new text end
new text begin
(1) has a fire department;
new text end
new text begin
(2) does not have a volunteer firefighters relief association directly associated with its
fire department;
new text end
new text begin
(3) does not participate in the statewide volunteer firefighter retirement plan under
chapter 353G;
new text end
new text begin
(4) provides retirement coverage to its firefighters through the public employees police
and fire retirement plan under sections 353.63 to 353.68; and
new text end
new text begin
(5) is certified by the executive director of the Public Employees Retirement Association
to the state auditor to have had an employer contribution under section 353.65, subdivision
3, for its firefighters for the immediately prior calendar year equal to or greater than its fire
state aid for the immediately prior calendar year.
new text end
new text begin Subd. 6. new text end
new text begin Notification by commissioner of revenue and state auditor. new text end
new text begin
(a) The state
auditor, in performing an audit or examination, must notify the Legislative Commission on
Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or
nonfeasance in office by relief association officials or municipal officials.
new text end
new text begin
(b) The commissioner of revenue must notify the Legislative Commission on Pensions
and Retirement if the state auditor has not filed the required financial compliance reports
by July 1.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 3.
Minnesota Statutes 2018, section 424A.05, is amended by adding a subdivision to
read:
new text begin Subd. 3b. new text end
new text begin Authorized administrative expenses from special fund. new text end
new text begin
(a) Notwithstanding
any provision of law to the contrary, the payment of the following necessary, reasonable,
and direct expenses of maintaining, protecting, and administering the special fund, when
provided for in the bylaws of the association and approved by the board of trustees,
constitutes authorized administrative expenses of a volunteer firefighters relief association
organized under any law of the state or the Bloomington Fire Department Relief Association:
new text end
new text begin
(1) office expenses, including but not limited to rent, utilities, equipment, supplies,
postage, periodical subscriptions, furniture, fixtures, and salaries of administrative personnel;
new text end
new text begin
(2) salaries of the officers of the association or their designees, and salaries of the
members of the board of trustees of the association if the salary amounts are approved by
the governing body of the entity that is responsible for meeting any minimum obligation
under section 424A.092 or 424A.093 or Laws 2013, chapter 111, article 5, sections 31 to
42, and the itemized expenses of relief association officers and board members that are
incurred as a result of fulfilling their responsibilities as administrators of the special fund;
new text end
new text begin
(3) tuition, registration fees, organizational dues, and other authorized expenses of the
officers or members of the board of trustees incurred in attending educational conferences,
seminars, or classes relating to the administration of the relief association;
new text end
new text begin
(4) audit and audit-related services, accounting and accounting-related services, and
actuarial, medical, legal, and investment and performance evaluation expenses;
new text end
new text begin
(5) filing and application fees payable by the relief association to federal or other
government entities;
new text end
new text begin
(6) reimbursement to the officers and members of the board of trustees or their designees,
for reasonable and necessary expenses actually paid and incurred in the performance of
their duties as officers or members of the board; and
new text end
new text begin
(7) premiums on fiduciary liability insurance and official bonds for the officers, members
of the board of trustees, and employees of the relief association.
new text end
new text begin
(b) All other expenses of the relief association must be paid from the general fund of
the association if one exists. If a relief association has only one fund, that fund is the special
fund for purposes of this subdivision. If a relief association has a special fund and a general
fund, the payment of any expense of the relief association that is directly related to the
purposes for which both funds were established must be apportioned between the two funds
on the basis of the benefits derived by each fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 4. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2018, sections 69.051, subdivisions 1, 1a, 1b, 2, 3, and 4; and
69.80,
new text end
new text begin
are repealed.
new text end
new text begin
(b)
new text end
new text begin
Minnesota Statutes 2018, sections 69.33; and 297I.25, subdivision 2,
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 July 1, 2019. Paragraph (b) is effective
for reports filed after December 31, 2019.
new text end
ARTICLE 21
FIRE AND POLICE STATE AID; CONFORMING CHANGES
Section 1.
Minnesota Statutes 2018, section 6.495, subdivision 3, is amended to read:
Subd. 3.
Report to commissioner of revenue.
The state auditor shall file with the
commissioner of revenue a financial compliance report certifying for each relief association:
(1) the completion of the annual financial report required under section deleted text begin 69.051deleted text end new text begin 424A.014new text end
and the auditing or certification of those financial reports under subdivision 1; and
(2) the receipt of any actuarial valuations required under section 424A.093 or Laws
2013, chapter 111, article 5, sections 31 to 42.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 2.
Minnesota Statutes 2018, section 144E.42, subdivision 2, is amended to read:
Subd. 2.
Trust account.
(a) There is established in the general fund the Cooper/Sams
volunteer ambulance trust account and the Cooper/Sams volunteer ambulance award and
account.
(b) The trust account must be credited with:
(1) general fund appropriations for that purpose;
(2) transfers from the Cooper/Sams volunteer ambulance award and account; and
(3) investment earnings on those accumulated proceeds. The assets and income of the
trust account must be held and managed by the commissioner of management and budget
and the State Board of Investment for the benefit of the state of Minnesota and its general
creditors.
(c) The Cooper/Sams volunteer ambulance account must be credited with transfers from
the excess police state-aid holding account established in section deleted text begin 69.021, subdivision 11deleted text end new text begin
477C.03, subdivision 4new text end , any per-year-of-service allocation under section 144E.45, subdivision
2, paragraph (c), that was not made for an individual, and investment earnings on those
accumulated proceeds. The Cooper/Sams volunteer ambulance account must be managed
by the commissioner of management and budget and the State Board of Investment. From
the Cooper/Sams volunteer ambulance account to the trust account there must be transferred
to the Cooper/Sams volunteer ambulance trust account, as the Cooper/Sams volunteer
ambulance account balance permits, the following amounts:
(1) an amount equal to any general fund appropriation to the Cooper/Sams volunteer
ambulance trust account for that fiscal year; and
(2) an amount equal to the percentage of the remaining balance in the account after the
deduction of the amount under clause (1), as specified for the applicable fiscal year:
| Fiscal year |
Percentage |
||
| 1995 |
20 |
||
| 1996 |
40 |
||
| 1997 |
50 |
||
| 1998 |
60 |
||
| 1999 |
70 |
||
| 2000 |
80 |
||
| 2001 |
90 |
||
| 2002 and thereafter |
100 |
||
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2018, section 297I.20, subdivision 3, is amended to read:
Subd. 3.
Historic structure rehabilitation credit.
An insurance company may claim
a credit against the premiums tax imposed under this chapter equal to the amount of the
credit certificate issued to it, or to a person who has assigned the credit to the insurance
company, under section 290.0681. If the amount of the credit exceeds the liability for tax
under this chapter, the commissioner shall refund the excess to the insurance company. An
amount sufficient to pay the refunds under this section is appropriated to the commissioner
from the general fund. This credit does not affect the calculation of deleted text begin police anddeleted text end fire new text begin state new text end aid
under section deleted text begin 69.021deleted text end new text begin 477B.03 and police state aid under section 477C.03new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2018, section 353G.01, subdivision 9, is amended to read:
Subd. 9.
Municipality.
"Municipality" means a governmental entity specified in section
deleted text begin 69.011, subdivision 1, paragraph (b), clauses (1), (2), and (5)deleted text end new text begin 477B.01, subdivision 10new text end , a
city or township that has entered into a contract with an independent nonprofit firefighting
corporation, or a city or township that has entered into a contract with a joint powers entity
established under section 471.59.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 5.
Minnesota Statutes 2018, section 353G.05, subdivision 2, is amended to read:
Subd. 2.
Election of coverage; lump sum.
(a) The process for electing coverage of
volunteer firefighters by the lump-sum retirement division is initiated by a request to the
executive director for a cost analysis of the prospective retirement coverage under the
lump-sum retirement division.
(b) If the volunteer firefighters are currently covered by a lump-sum volunteer firefighter
relief association or a defined contribution volunteer firefighter relief association governed
by chapter 424A, the cost analysis of the prospective retirement coverage must be requested
jointly by the secretary of the volunteer firefighter relief association, following approval of
the request by the board of the volunteer firefighter relief association, and the chief
administrative officer of the entity associated with the relief association, following approval
of the request by the governing body of the entity associated with the relief association. If
the relief association is associated with more than one entity, the chief administrative officer
of each associated entity must execute the request. If the volunteer firefighters are not
currently covered by a volunteer firefighter relief association, the cost analysis of the
prospective retirement coverage must be requested by the chief administrative officer of
the entity operating the fire department. The request must be made in writing and must be
made on a form prescribed by the executive director.
(c) The cost analysis of the prospective retirement coverage by the lump-sum retirement
division of the statewide retirement plan must be based on the service pension amount under
section 353G.11 closest to the service pension amount provided by the volunteer firefighter
relief association if the relief association is a lump-sum defined benefit plan, or the amount
equal to 95 percent of the most current average account balance per relief association member
if the relief association is a defined contribution plan, or to the lowest service pension amount
under section 353G.11 if there is no volunteer firefighter relief association, rounded up, and
any other service pension amount designated by the requester or requesters. The cost analysis
must be prepared using a mathematical procedure certified as accurate by an approved
actuary retained by the Public Employees Retirement Association.
(d) If a cost analysis is requested and a volunteer deleted text begin firefighters'deleted text end new text begin firefightersnew text end relief association
exists that has filed the information required under section deleted text begin 69.051deleted text end new text begin 424A.014new text end in a timely
fashion, upon request by the executive director, the state auditor shall provide the most
recent data available on the financial condition of the volunteer firefighter relief association,
the most recent firefighter demographic data available, and a copy of the current relief
association bylaws. If a cost analysis is requested, but no volunteer firefighter relief
association exists, the chief administrative officer of the entity operating the fire department
shall provide the demographic information on the volunteer firefighters serving as members
of the fire department requested by the executive director.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 6.
Minnesota Statutes 2018, section 353G.08, subdivision 1, is amended to read:
Subdivision 1.
Annual funding requirements; lump-sum retirement division.
(a)
Annually, the executive director shall determine the funding requirements of each account
in the lump-sum retirement division of the voluntary statewide volunteer firefighter retirement
plan on or before August 1. The funding requirements computed under this subdivision
must be determined using a mathematical procedure developed and certified as accurate by
the approved actuary retained by the Public Employees Retirement Association and must
be based on present value factors using a six percent interest rate, without any decrement
assumptions. The funding requirements must be certified to the entity or entities associated
with the fire department whose active firefighters are covered by the retirement plan.
(b) The overall funding balance of each lump-sum account for the current calendar year
must be determined in the following manner:
(1) The total accrued liability for all active and deferred members of the account as of
December 31 of the current year must be calculated based on the good time service credit
of active and deferred members as of that date.
(2) The total present assets of the account projected to December 31 of the current year,
including receipts by and disbursements from the account anticipated to occur on or before
December 31, must be calculated. To the extent possible, the market value of assets must
be utilized in making this calculation.
(3) The amount of the total present assets calculated under clause (2) must be subtracted
from the amount of the total accrued liability calculated under clause (1). If the amount of
total present assets exceeds the amount of the total accrued liability, then the account is
considered to have a surplus over full funding. If the amount of the total present assets is
less than the amount of the total accrued liability, then the account is considered to have a
deficit from full funding. If the amount of total present assets is equal to the amount of the
total accrued liability, then the special fund is considered to be fully funded.
(c) The financial requirements of each lump-sum account for the following calendar
year must be determined in the following manner:
(1) The total accrued liability for all active and deferred members of the account as of
December 31 of the calendar year next following the current calendar year must be calculated
based on the good time service used in the calculation under paragraph (b), clause (1),
increased by one year.
(2) The increase in the total accrued liability of the account for the following calendar
year over the total accrued liability of the account for the current year must be calculated.
(3) The amount of administrative expenses of the account must be calculated by
multiplying the per-person dollar amount of the administrative expenses for the most recent
prior calendar year by the number of active and deferred firefighters reported to PERA on
the most recent good time service credit certification form for each account.
(4) If the account is fully funded, the financial requirement of the account for the
following calendar year is the total of the amounts calculated under clauses (2) and (3).
(5) If the account has a deficit from full funding, the financial requirement of the account
for the following calendar year is the total of the amounts calculated under clauses (2) and
(3) plus an amount equal to one-tenth of the amount of the deficit from full funding of the
account.
(6) If the account has a surplus over full funding, the financial requirement of the account
for the following calendar year is the financial requirement of the account calculated as
though the account was fully funded under clause (4) and, if the account has also had a
surplus over full funding during the prior two years, additionally reduced by an amount
equal to one-tenth of the amount of the surplus over full funding of the account.
(d) The required contribution of the entity or entities associated with the fire department
whose active firefighters are covered by the lump-sum retirement division is the annual
financial requirements of the lump-sum account of the retirement plan under paragraph (c)
reduced by the amount of any fire state aid payable under deleted text begin sections 69.011 to 69.051deleted text end new text begin chapter
477Bnew text end or police and firefighter retirement supplemental state aid payable under section
423A.022 that is reasonably anticipated to be received by the retirement plan attributable
to the entity or entities during the following calendar year, and an amount of interest on the
assets projected to be received during the following calendar year calculated at the rate of
six percent per annum. The required contribution must be allocated between the entities if
more than one entity is involved. A reasonable amount of anticipated fire state aid is an
amount that does not exceed the fire state aid actually received in the prior year multiplied
by the factor 1.035.
(e) The required contribution calculated in paragraph (d) must be paid to the retirement
plan on or before December 31 of the year for which it was calculated. If the contribution
is not received by the retirement plan by December 31, it is payable with interest at an
annual compound rate of six percent from the date due until the date payment is received
by the retirement plan. If the entity does not pay the full amount of the required contribution,
the executive director shall collect the unpaid amount under section 353.28, subdivision 6.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 7.
Minnesota Statutes 2018, section 353G.08, subdivision 1a, is amended to read:
Subd. 1a.
Annual funding requirements; monthly benefit retirement division.
(a)
Annually, the executive director shall determine the funding requirements of each monthly
benefit account in the voluntary statewide volunteer firefighter retirement plan on or before
August 1.
(b) The executive director must determine the funding requirements of a monthly benefit
account under this subdivision from:
(1) the most recent actuarial valuation normal cost, administrative expense, including
the cost of a regular actuarial valuation, and amortization results for the account determined
by the approved actuary retained by the retirement association under sections 356.215 and
356.216; and
(2) the standards for actuarial work, utilizing a six percent interest rate actuarial
assumption and other actuarial assumptions approved under section 356.215, subdivision
18:
(i) with that portion of any unfunded actuarial accrued liability attributable to a benefit
increase to be amortized over a period of 20 years from the date of the benefit change;
(ii) with that portion of any unfunded actuarial accrued liability attributable to an
assumption change or an actuarial method change to be amortized over a period of 20 years
from the date of the assumption or method change;
(iii) with that portion of any unfunded actuarial accrued liability attributable to an
investment loss to be amortized over a period of ten years from the date of investment loss;
and
(iv) with the balance of any net unfunded actuarial accrued liability to be amortized over
a period of five years from the date of the actuarial valuation.
(c) The required contributions of the entity or entities associated with the fire department
whose active firefighters are covered by the monthly benefit retirement division are the
annual financial requirements of the monthly benefit account of the retirement plan under
paragraph (b) reduced by the amount of any fire state aid payable under deleted text begin sections 69.011 to
69.051deleted text end new text begin chapter 477Bnew text end , or any police and firefighter retirement supplemental state aid payable
under section 423A.022, that is reasonably anticipated to be received by the retirement plan
attributable to the entity or entities during the following calendar year. The required
contribution must be allocated between the entities if more than one entity is involved. A
reasonable amount of anticipated fire state aid is an amount that does not exceed the fire
state aid actually received in the prior year multiplied by the factor 1.035.
(d) The required contribution calculated in paragraph (c) must be paid to the retirement
plan on or before December 31 of the year for which it was calculated. If the contribution
is not received by the retirement plan by December 31, it is payable with interest at an
annual compound rate of six percent from the date due until the date payment is received
by the retirement plan. If the entity does not pay the full amount of the required contribution,
the executive director shall collect the unpaid amount under section 353.28, subdivision 6.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 8.
Minnesota Statutes 2018, section 353G.17, subdivision 2, is amended to read:
Subd. 2.
Approval by the relief association.
(a) Before a transfer of records, assets,
and liabilities from the retirement plan to a relief association may occur, the board of trustees
of the relief association shall adopt resolutions as follows:
(1) approving and accepting the transfer of records, assets, and liabilities from the
retirement plan; and
(2) amending the bylaws of the relief association as necessary to add the firefighters
whose benefits are being transferred from the retirement plan and to provide that each benefit
being transferred retains vesting, distribution, and other rights to which the firefighter, for
whom the benefit is being transferred, is entitled under the terms of the retirement plan to
the date of the transfer.
The board of trustees shall file a copy of the resolutions with the executive director.
(b) The board of trustees of the relief association shall file with the state auditor the
following:
(1) a copy of the resolutions required under paragraph (a);
(2) a copy of the bylaws of the relief association and any bylaw amendments;
(3) a copy of the relief association's investment policy;
(4) a statement that a board of trustees has been duly elected and each trustee's name,
address, telephone number, and e-mail address, if any;
(5) a copy of the most recent annual financial, investment, and plan administration report
filed under section deleted text begin 69.051deleted text end new text begin 424A.014new text end , unless the due date for the first report has not yet
occurred; and
(6) a copy of the documentation indicating that a special fund has been established with
a financial institution to receive a transfer of assets from the retirement plan.
(c) Upon receipt of the information and documents required under paragraph (b), the
state auditor shall issue to the relief association and the executive director written
confirmation of receipt of all required information and documents.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 9.
Minnesota Statutes 2018, section 356.20, subdivision 4a, is amended to read:
Subd. 4a.
Financial report for police or firefighters relief association.
For any police
or deleted text begin firefighter'sdeleted text end new text begin firefightersnew text end relief association referred to in subdivision 2, clause (10) or (11),
a financial report that is duly filed and that meets the requirements of section deleted text begin 69.051deleted text end
new text begin 424A.014 new text end is deemed to have met the requirements of subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 10.
Minnesota Statutes 2018, section 356.219, subdivision 8, is amended to read:
Subd. 8.
Timing of reports.
(a) For the Bloomington Fire Department Relief Association
and the volunteer firefighter relief associations, the information required under this section
must be submitted by the due date for reports required under section deleted text begin 69.051, subdivision 1
or 1adeleted text end new text begin 424A.014, subdivision 1 or 2new text end , as applicable. If a relief association satisfies the definition
of a fully invested plan under subdivision 1, paragraph (b), for the calendar year covered
by the report required under section deleted text begin 69.051, subdivision 1 or 1adeleted text end new text begin 424A.014, subdivision 1
or 2new text end , as applicable, the chief administrative officer of the covered pension plan shall certify
that compliance on a form prescribed by the state auditor. The state auditor shall transmit
annually to the State Board of Investment a list or lists of covered pension plans which
submitted certifications in order to facilitate reporting by the State Board of Investment
under paragraph (c).
(b) For the St. Paul Teachers Retirement Fund Association and the University of
Minnesota faculty supplemental retirement plan, the information required under this section
must be submitted to the state auditor by June 1 of each year.
(c) The State Board of Investment, on behalf of pension funds specified in subdivision
1, paragraph (c), shall report information required under this section by September 1 of each
year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 11.
Minnesota Statutes 2018, section 423A.02, subdivision 1b, is amended to read:
Subd. 1b.
Additional amortization state aid.
(a) Annually, the commissioner shall
allocate the additional amortization state aid, if any, including any state aid in excess of the
limitation in subdivision 4, on the following basis:
(1) 47.1 percent to the city of Minneapolis to defray the employer costs associated with
police and firefighter retirement coverage;
(2) 25.8 percent as additional funding to support the minimum fire state aid for volunteer
firefighter relief associations under section deleted text begin 69.021, subdivision 7, paragraph (d)deleted text end new text begin 477B.03,
subdivision 5new text end ;
(3) 12.9 percent to the city of Duluth to defray employer costs associated with police
and firefighter retirement coverage;
(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the investment
performance requirement of paragraph (c) is met; and
(5) 1.3 percent to the city of Virginia to defray the employer contribution under section
353.665, subdivision 8, paragraph (d).
If there is no additional employer contribution under section 353.665, subdivision 8,
paragraph (b), certified under subdivision 1, paragraph (d), clause (2), with respect to the
former Minneapolis Police Relief Association and the former Minneapolis Fire Department
Relief Association, the commissioner shall allocate that 47.1 percent of the aid as follows:
49 percent to the Teachers Retirement Association, 21 percent to the St. Paul Teachers
Retirement Fund Association, and 30 percent as additional funding to support minimum
fire state aid for volunteer firefighter relief associations under section deleted text begin 69.021, subdivision
7, paragraph (d)deleted text end new text begin 477B.03, subdivision 5new text end . If there is no employer contribution by the city of
Virginia under section 353.665, subdivision 8, paragraph (d), for the former Virginia Fire
Department Relief Association certified on or before June 30 by the executive director of
the Public Employees Retirement Association, the commissioner shall allocate that 1.3
percent of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent
to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional funding
to support minimum fire state aid for volunteer firefighter relief associations under section
deleted text begin 69.021, subdivision 7, paragraph (d)deleted text end new text begin 477B.03, subdivision 5new text end .
(b) The allocation must be made by the commissioner of revenue on October 1 annually.
(c) With respect to the St. Paul Teachers Retirement Fund Association, annually, if the
teacher's association five-year average time-weighted rate of investment return does not
equal or exceed the performance of a composite portfolio assumed passively managed
(indexed) invested ten percent in cash equivalents, 60 percent in bonds and similar debt
securities, and 30 percent in domestic stock calculated using the formula under section
11A.04, clause (11), the aid allocation to the retirement fund under this section ceases until
the five-year annual rate of investment return equals or exceeds the performance of that
composite portfolio.
(d) The amounts required under this subdivision are the amounts annually appropriated
to the commissioner of revenue under section deleted text begin 69.021, subdivision 11deleted text end new text begin 477B.03, subdivision
5new text end , paragraph (d), if any, and the aid amounts in excess of the limitation in subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 12.
Minnesota Statutes 2018, section 423A.02, subdivision 3, is amended to read:
Subd. 3.
Reallocation of amortization state aid.
(a) Seventy percent of the difference
between $5,720,000 and the current year amortization aid distributed under subdivision 1
that is not distributed for any reason to a municipality must be distributed by the
commissioner of revenue according to this paragraph. The commissioner shall distribute
60 percent of the amounts derived under this paragraph to the Teachers Retirement
Association, and 40 percent to the St. Paul Teachers Retirement Fund Association to fund
the unfunded actuarial accrued liabilities of the respective funds. These payments must be
made on July 15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or
the Teachers Retirement Association satisfies subdivision 5, eligibility for its portion of this
aid ceases. Amounts remaining in the undistributed balance account at the end of the
biennium if aid eligibility ceases cancel to the general fund.
(b) In order to receive amortization aid under paragraph (a), before June 30 annually
Independent School District No. 625, St. Paul, must make an additional contribution of
$800,000 each year to the St. Paul Teachers Retirement Fund Association.
(c) Thirty percent of the difference between $5,720,000 and the current year amortization
aid under subdivision 1 that is not distributed for any reason to a municipality must be
distributed under section deleted text begin 69.021, subdivision 7, paragraph (d)deleted text end new text begin 477B.03, subdivision 5new text end , as
additional funding to support a minimum fire state aid amount for volunteer firefighter relief
associations.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 13.
Minnesota Statutes 2018, section 423A.022, subdivision 2, is amended to read:
Subd. 2.
Allocation.
(a) Of the total amount appropriated as supplemental state aid:
(1) 58.064 percent must be paid to the executive director of the Public Employees
Retirement Association for deposit in the public employees police and fire retirement fund
established by section 353.65, subdivision 1;
(2) 35.484 percent must be paid to municipalities other than municipalities solely
employing firefighters with retirement coverage provided by the public employees police
and fire retirement plan which qualified to receive fire state aid in that calendar year, allocated
in proportion to the most recent amount of fire state aid paid under section deleted text begin 69.021,
subdivision 7deleted text end new text begin 477B.04new text end , for the municipality bears to the most recent total fire state aid for
all municipalities other than the municipalities solely employing firefighters with retirement
coverage provided by the public employees police and fire retirement plan paid under section
deleted text begin 69.021, subdivision 7deleted text end new text begin 477B.04new text end , with the allocated amount for fire departments participating
in the voluntary statewide lump-sum volunteer firefighter retirement plan paid to the
executive director of the Public Employees Retirement Association for deposit in the fund
established by section 353G.02, subdivision 3, and credited to the respective account and
with the balance paid to the treasurer of each municipality for transmittal within 30 days of
receipt to the treasurer of the applicable volunteer firefighter relief association for deposit
in its special fund; and
(3) 6.452 percent must be paid to the executive director of the Minnesota State Retirement
System for deposit in the state patrol retirement fund.
(b) For purposes of this section, the term "municipalities" includes independent nonprofit
firefighting corporations that participate in the voluntary statewide lump-sum volunteer
firefighter retirement plan under chapter 353G or with subsidiary volunteer firefighter relief
associations operating under chapter 424A.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 14.
Minnesota Statutes 2018, section 423A.022, subdivision 4, is amended to read:
Subd. 4.
Payments; conditions prerequisite.
(a) The payments under this section must
be made on October 1 each year, with interest at one percent for each month, or portion of
a month, that the amount remains unpaid after October 1. Any necessary adjustments must
be made to subsequent payments.
(b) The provisions of deleted text begin sections 69.011 to 69.051deleted text end new text begin chapter 477B and section 424A.014new text end that
prevent municipalities and relief associations from being eligible for, or receiving fire state
aid under deleted text begin sections 69.011 to 69.051deleted text end new text begin chapter 477B and section 424A.014new text end until the applicable
financial reporting requirements have been complied with, apply to the amounts payable to
municipalities and relief associations under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019, except the references to
Minnesota Statutes, chapter 477B, are effective for aids payable in 2020 and thereafter.
new text end
Sec. 15.
Minnesota Statutes 2018, section 424A.016, subdivision 2, is amended to read:
Subd. 2.
Defined contribution service pension eligibility.
(a) A relief association,
when its articles of incorporation or bylaws so provide, may pay out of the assets of its
special fund a defined contribution service pension to each of its members who:
(1) separates from active service with the fire department;
(2) reaches age 50;
(3) completes at least five years of active service as an active member of the fire
department to which the relief association is associated;
(4) completes at least five years of active membership with the relief association before
separation from active service; and
(5) complies with any additional conditions as to age, service, and membership that are
prescribed by the bylaws of the relief association.
(b) In the case of a member who has completed at least five years of active service as
an active member of the fire department to which the relief association is associated on the
date that the relief association is established and incorporated, the requirement that the
member complete at least five years of active membership with the relief association before
separation from active service may be waived by the board of trustees of the relief association
if the member completes at least five years of inactive membership with the relief association
before the date of the payment of the service pension. During the period of inactive
membership, the member is not entitled to receive any disability benefit coverage, is not
entitled to receive additional individual account allocation of fire state aid or municipal
contribution towards a service pension, and is considered to have the status of a person
entitled to a deferred service pension.
(c) The service pension earned by a volunteer under this chapter and the articles of
incorporation and bylaws of the relief association may be paid whether or not the municipality
or independent nonprofit firefighting corporation to which the relief association is associated
qualifies for the receipt of fire state aid under chapter deleted text begin 69deleted text end new text begin 477Bnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 16.
Minnesota Statutes 2018, section 424A.016, subdivision 4, is amended to read:
Subd. 4.
Individual accounts.
(a) An individual account must be established for each
firefighter who is a member of the relief association.
(b) To each individual active member account must be credited an equal share of:
(1) any amounts of fire state aid and police and firefighter retirement supplemental state
aid received by the relief association;
(2) any amounts of municipal contributions to the relief association raised from levies
on real estate or from other available municipal revenue sources exclusive of fire state aid;
and
(3) any amounts equal to the share of the assets of the special fund to the credit of:
(i) any former member who terminated active service with the fire department to which
the relief association is associated before meeting the minimum service requirement provided
for in subdivision 2, paragraph (b), and has not returned to active service with the fire
department for a period no shorter than five years; or
(ii) any retired member who retired before obtaining a full nonforfeitable interest in the
amounts credited to the individual member account under subdivision 2, paragraph (b), and
any applicable provision of the bylaws of the relief association. In addition, any investment
return on the assets of the special fund must be credited in proportion to the share of the
assets of the special fund to the credit of each individual active member account.
Administrative expenses of the relief association payable from the special fund may be
deducted from individual accounts in a manner specified in the bylaws of the relief
association.
(c) If the bylaws so permit and as the bylaws define, the relief association may credit
any investment return on the assets of the special fund to the accounts of inactive members.
(d) Amounts to be credited to individual accounts must be allocated uniformly for all
years of active service and allocations must be made for all years of service, except for caps
on service credit if so provided in the bylaws of the relief association. Amounts forfeited
under paragraph (b), clause (3), before a resumption of active service and membership under
section 424A.01, subdivision 6, remain forfeited and may not be reinstated upon the
resumption of active service and membership. The allocation method may utilize monthly
proration for fractional years of service, as the bylaws or articles of incorporation of the
relief association so provide. The bylaws or articles of incorporation may define a "month,"
but the definition must require a calendar month to have at least 16 days of active service.
If the bylaws or articles of incorporation do not define a "month," a "month" is a completed
calendar month of active service measured from the member's date of entry to the same date
in the subsequent month.
(e) At the time of retirement under subdivision 2 and any applicable provision of the
bylaws of the relief association, a retiring member is entitled to that portion of the assets of
the special fund to the credit of the member in the individual member account which is
nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief
association based on the number of years of service to the credit of the retiring member.
(f) Annually, the secretary of the relief association shall certify the individual account
allocations to the state auditor at the same time that the annual financial statement or financial
report and audit of the relief association, whichever applies, is due under section deleted text begin 69.051deleted text end new text begin
424A.014new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 17.
Minnesota Statutes 2018, section 424A.02, subdivision 1, is amended to read:
Subdivision 1.
Authorization.
(a) A defined benefit relief association, when its articles
of incorporation or bylaws so provide, may pay out of the assets of its special fund a defined
benefit service pension to each of its members who: (1) separates from active service with
the fire department; (2) reaches age 50; (3) completes at least five years of active service
as an active member of the fire department to which the relief association is associated; (4)
completes at least five years of active membership with the relief association before
separation from active service; and (5) complies with any additional conditions as to age,
service, and membership that are prescribed by the bylaws of the relief association. A service
pension computed under this section may be prorated monthly for fractional years of service
as the bylaws or articles of incorporation of the relief association so provide. The bylaws
or articles of incorporation may define a "month," but the definition must require a calendar
month to have at least 16 days of active service. If the bylaws or articles of incorporation
do not define a "month," a "month" is a completed calendar month of active service measured
from the member's date of entry to the same date in the subsequent month. The service
pension earned by a volunteer firefighter under this chapter and the articles of incorporation
and bylaws of the volunteer firefighters relief association may be paid whether or not the
municipality or independent nonprofit firefighting corporation to which the relief association
is associated qualifies for the receipt of fire state aid under chapter deleted text begin 69deleted text end new text begin 477Bnew text end .
(b) In the case of a member who has completed at least five years of active service as
an active member of the fire department to which the relief association is associated on the
date that the relief association is established and incorporated, the requirement that the
member complete at least five years of active membership with the relief association before
separation from active service may be waived by the board of trustees of the relief association
if the member completes at least five years of inactive membership with the relief association
before the date of the payment of the service pension. During the period of inactive
membership, the member is not entitled to receive disability benefit coverage, is not entitled
to receive additional service credit towards computation of a service pension, and is
considered to have the status of a person entitled to a deferred service pension under
subdivision 7.
(c) No municipality, independent nonprofit firefighting corporation, or joint powers
entity may delegate the power to take final action in setting a service pension or ancillary
benefit amount or level to the board of trustees of the relief association or to approve in
advance a service pension or ancillary benefit amount or level equal to the maximum amount
or level that this chapter would allow rather than a specific dollar amount or level.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 18.
Minnesota Statutes 2018, section 424A.02, subdivision 3a, is amended to read:
Subd. 3a.
Penalty for paying pension greater than applicable maximum.
(a) If a
defined benefit relief association pays a service pension greater than the maximum service
pension associated with the applicable average amount of available financing per active
covered firefighter under the table in subdivision 3, paragraph (c) or (d), whichever applies,
the maximum service pension under subdivision 3, paragraph (f), or the applicable maximum
service pension amount specified in subdivision 3, paragraph (g), whichever is less, the
state auditor shall:
(1) disqualify the municipality or the independent nonprofit firefighting corporation
associated with the relief association from receiving fire state aid by making the appropriate
notification to the municipality and the commissioner of revenue, with the disqualification
applicable for the next apportionment and payment of fire state aid; and
(2) order the treasurer of the applicable relief association to recover the amount of the
overpaid service pension or pensions from any retired firefighter who received an
overpayment.
(b) Fire state aid amounts from disqualified municipalities for the period of
disqualifications under paragraph (a), clause (1), must be credited to the amount of fire
insurance premium tax proceeds available for the next subsequent fire state aid
apportionment.
(c) The amount of any overpaid service pension recovered under paragraph (a), clause
(2), must be credited to the amount of fire insurance premium tax proceeds available for
the next subsequent fire state aid apportionment.
(d) The determination of the state auditor that a relief association has paid a service
pension greater than the applicable maximum must be made on the basis of the information
filed by the relief association and the municipality with the state auditor under deleted text begin sections
69.011, subdivision 2, and 69.051, subdivision 1 or 1a, whichever applies,deleted text end new text begin this chapternew text end and
any other relevant information that comes to the attention of the state auditor. The
determination of the state auditor is final. An aggrieved municipality, relief association, or
person may appeal the determination under section 480A.06.
(e) The state auditor may certify, upon learning that a relief association overpaid a service
pension based on an error in the maximum service pension calculation, the municipality or
independent nonprofit firefighting corporation associated with the relief association for fire
state aid if (1) there is evidence that the error occurred in good faith, and (2) the relief
association has initiated recovery of any overpayment amount. Notwithstanding paragraph
(c), all overpayments recovered under this paragraph must be credited to the relief
association's special fund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 19.
Minnesota Statutes 2018, section 424A.02, subdivision 10, is amended to read:
Subd. 10.
Local approval of bylaw amendments; filing requirements.
(a) Each defined
benefit relief association to which this section applies must file a revised copy of its governing
bylaws with the state auditor upon the adoption of any amendment to its governing bylaws
by the relief association or upon the approval of any amendment to its governing bylaws
granted by the governing body of each municipality served by the fire department to which
the relief association is directly associated. Failure of the relief association to file a copy of
the bylaws or any bylaw amendments with the state auditor disqualifies the municipality
from the distribution of any future fire state aid until this filing requirement has been
completed.
(b) If the special fund of the relief association does not have a surplus over full funding
under section 424A.092, subdivision 3, paragraph (c), clause (5), or 424A.093, subdivision
4, and if the municipality is required to provide financial support to the special fund of the
relief association under section 424A.092 or 424A.093, no bylaw amendment which would
affect the amount of, the manner of payment of, or the conditions for qualification for service
pensions or ancillary benefits or disbursements other than administrative expenses authorized
under section deleted text begin 69.80deleted text end new text begin 424A.05, subdivision 3b,new text end payable from the special fund of the relief
association is effective until it has been ratified as required under section 424A.092,
subdivision 6, or 424A.093, subdivision 6. If the special fund of the relief association has
a surplus over full funding under section 424A.092, subdivision 3, or 424A.093, subdivision
4, and if the municipality is not required to provide financial support to the special fund
under this section, the relief association may adopt or amend without municipal ratification
its articles of incorporation or bylaws which increase or otherwise affect the service pensions
or ancillary benefits payable from the special fund if authorized under section 424A.092,
subdivision 6, or 424A.093, subdivision 6.
(c) If the relief association pays only a lump-sum pension, the financial requirements
are to be determined by the board of trustees following the preparation of an estimate of
the expected increase in the accrued liability and annual accruing liability of the relief
association attributable to the change. If the relief association pays a monthly benefit service
pension, the financial requirements are to be determined by the board of trustees following
either an updated actuarial valuation including the proposed change or an estimate of the
expected actuarial impact of the proposed change prepared by the actuary of the relief
association. If a relief association adopts or amends its articles of incorporation or bylaws
without municipal ratification under this subdivision, and, subsequent to the amendment or
adoption, the financial requirements of the special fund under this section are such so as to
require financial support from the municipality, the provision which was implemented
without municipal ratification is no longer effective without municipal ratification, and any
service pensions or ancillary benefits payable after that date must be paid only in accordance
with the articles of incorporation or bylaws as amended or adopted with municipal
ratification.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 20.
Minnesota Statutes 2018, section 424A.03, subdivision 2, is amended to read:
Subd. 2.
Penalties for violations.
A municipality which has a fire department associated
with a relief association which violates the provisions of subdivision 1 is directly associated
or which contracts with an independent nonprofit firefighting corporation associated with
a relief association which violates the provisions of subdivision 1 is a subsidiary may not
be included in the apportionment of fire state aid deleted text begin to the applicable county auditordeleted text end new text begin and police
and firefighter retirement supplemental state aid payablenew text end under deleted text begin section 69.021, subdivision
6,deleted text end new text begin chapter 477B and section 423A.022new text end and may not be included in the apportionment of
fire state aid deleted text begin by the county auditordeleted text end to the various municipalities under section deleted text begin 69.021,
subdivision 7deleted text end new text begin 477B.03new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 21.
Minnesota Statutes 2018, section 424A.05, subdivision 2, is amended to read:
Subd. 2.
Special fund assets and revenues.
The special fund must be credited with all
fire state aid and police and firefighter retirement supplemental state aid received under
deleted text begin sections 69.011 to 69.051deleted text end new text begin chapter 477Bnew text end and new text begin section new text end 423A.022, all taxes levied by or other
revenues received from the municipality under sections 424A.091 to 424A.096 or any
applicable special law requiring municipal support for the relief association, any funds or
property donated, given, granted or devised by any person which is specified for use for the
support of the special fund and any interest or investment return earned upon the assets of
the special fund. The treasurer of the relief association is the custodian of the assets of the
special fund and must be the recipient on behalf of the special fund of all revenues payable
to the special fund. The treasurer shall maintain adequate records documenting any
transaction involving the assets or the revenues of the special fund. These records and the
bylaws of the relief association are public and must be open for inspection by any member
of the relief association, any officer or employee of the state or of the municipality, or any
member of the public, at reasonable times and places.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 22.
Minnesota Statutes 2018, section 424A.05, subdivision 3, is amended to read:
Subd. 3.
Authorized disbursements from special fund.
(a) Disbursements from the
special fund may not be made for any purpose other than one of the following:
(1) for the payment of service pensions to retired members of the relief association if
authorized and paid under law and the bylaws governing the relief association;
(2) for the purchase of an annuity for the applicable person under section 424A.015,
subdivision 3, for the transfer of service pension or benefit amounts to the applicable person's
individual retirement account under section 424A.015, subdivision 4, or to the applicable
person's account in the Minnesota deferred compensation plan under section 424A.015,
subdivision 5;
(3) for the payment of temporary or permanent disability benefits to disabled members
of the relief association if authorized and paid under law and specified in amount in the
bylaws governing the relief association;
(4) for the payment of survivor benefits or for the payment of a death benefit to the estate
of the deceased active or deferred firefighter, if authorized and paid under law and specified
in amount in the bylaws governing the relief association;
(5) for the payment of the fees, dues and assessments to the Minnesota State Fire
Department Association and to the Minnesota State Fire Chiefs Association in order to
entitle relief association members to membership in and the benefits of these associations
or organizations;
(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit
Association, or an insurance company licensed by the state of Minnesota offering casualty
insurance, in order to entitle relief association members to membership in and the benefits
of the association or organization; and
(7) for the payment of administrative expenses of the relief association as authorized
under deleted text begin section 69.80deleted text end new text begin subdivision 3bnew text end .
(b) Checks or authorizations for electronic fund transfers for disbursements authorized
by this section must be signed by the relief association treasurer and at least one other elected
trustee who has been designated by the board of trustees to sign the checks or authorizations.
A relief association may make disbursements authorized by this subdivision by electronic
fund transfers only if the specific method of payment and internal control policies and
procedures regarding the method are approved by the board of trustees.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 23.
Minnesota Statutes 2018, section 424A.07, is amended to read:
424A.07 NONPROFIT FIREFIGHTING CORPORATIONS; ESTABLISHMENT
OF RELIEF ASSOCIATIONS.
Before paying any service pensions or retirement benefits under section 424A.02 or
before becoming entitled to receive any amounts of fire state aid upon transmittal from a
contracting municipality under section deleted text begin 69.031, subdivision 5deleted text end new text begin 477B.04, subdivision 3new text end , an
independent nonprofit firefighting corporation shall establish a volunteer firefighters relief
association governed by this chapter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 24.
Minnesota Statutes 2018, section 424A.091, subdivision 3, is amended to read:
Subd. 3.
Remedy for noncompliance; determination.
(a) A municipality in which
there exists a firefighters relief association as specified in subdivision 1 which does not
comply with the applicable provisions of sections 424A.091 to 424A.096 or the provisions
of any applicable special law relating to the funding or financing of the association does
not qualify initially to receive, and is not entitled subsequently to retain, fire state aid under
deleted text begin sections 69.011 to 69.051deleted text end new text begin chapter 477Bnew text end until the reason for the disqualification specified
by the state auditor is remedied, whereupon the municipality or relief association, if otherwise
qualified, is entitled to again receive fire state aid for the year occurring immediately
subsequent to the year in which the disqualification is remedied.
(b) The state auditor shall determine if a municipality to which a firefighters' relief
association is directly associated or a firefighters relief association fails to comply with the
provisions of sections 424A.091 to 424A.096 or the funding or financing provisions of any
applicable special law based upon the information contained in the annual financial report
of the firefighters relief association required under section deleted text begin 69.051deleted text end new text begin 424A.014new text end , the actuarial
valuation of the relief association, if applicable, the relief association officers' financial
requirements of the relief association and minimum municipal obligation determination
documentation under section 424A.092, subdivisions 3 and 4; 424A.093, subdivisions 4
and 5; or 424A.094, subdivision 2, if requested to be filed by the state auditor, the applicable
municipal or independent nonprofit firefighting corporation budget, if requested to be filed
by the state auditor, and any other relevant documents or reports obtained by the state
auditor.
(c) The municipality or independent nonprofit firefighting corporation and the associated
relief association are not eligible to receive or to retain fire state aid if:
(1) the relief association fails to prepare or to file the financial report or financial
statement under section deleted text begin 69.051deleted text end new text begin 424A.014new text end ;
(2) the relief association treasurer is not bonded in the manner and in the amount required
by deleted text begin section 69.051, subdivision 2deleted text end new text begin 424A.014, subdivision 4new text end ;
(3) the relief association officers fail to determine or improperly determine the accrued
liability and the annual accruing liability of the relief association under section 424A.092,
subdivisions 2, 2a, and 3, paragraph (c), clause (2), if applicable;
(4) if applicable, the relief association officers fail to obtain and file a required actuarial
valuation or the officers file an actuarial valuation that does not contain the special fund
actuarial liability calculated under the entry age normal actuarial cost method, the special
fund current assets, the special fund unfunded actuarial accrued liability, the special fund
normal cost under the entry age normal actuarial cost method, the amortization requirement
for the special fund unfunded actuarial accrued liability by the applicable target date, a
summary of the applicable benefit plan, a summary of the membership of the relief
association, a summary of the actuarial assumptions used in preparing the valuation, and a
signed statement by the actuary attesting to its results and certifying to the qualifications of
the actuary as an approved actuary under section 356.215, subdivision 1, paragraph (c);
(5) the municipality failed to provide a municipal contribution, or the independent
nonprofit firefighting corporation failed to provide a corporate contribution, in the amount
equal to the minimum municipal obligation if the relief association is governed under section
424A.092, or the amount necessary, when added to the fire state aid actually received in
the plan year in question, to at least equal in total the calculated annual financial requirements
of the special fund of the relief association if the relief association is governed under section
424A.093, and, if the municipal or corporate contribution is deficient, the municipality
failed to include the minimum municipal obligation certified under section 424A.092,
subdivision 3, or 424A.093, subdivision 5, in its budget and tax levy or the independent
nonprofit firefighting corporation failed to include the minimum corporate obligation certified
under section 424A.094, subdivision 2, in the corporate budget;
(6) the defined benefit relief association did not receive municipal ratification for the
most recent plan amendment when municipal ratification was required under section 424A.02,
subdivision 10; 424A.092, subdivision 6; or 424A.093, subdivision 6;
(7) the relief association invested special fund assets in an investment security that is
not authorized under section 424A.095;
(8) the relief association had an administrative expense that is not authorized under
section deleted text begin 69.80 ordeleted text end 424A.05, subdivision 3new text begin or 3bnew text end , or the municipality had an expenditure that
is not authorized under section 424A.08;
(9) the relief association officers fail to provide a complete and accurate public pension
plan investment portfolio and performance disclosure under section 356.219;
(10) the relief association fails to obtain the acknowledgment from a broker of the
statement of investment restrictions under section 356A.06, subdivision 8b;
(11) the relief association officers permitted to occur a prohibited transaction under
section 356A.06, subdivision 9, or 424A.04, subdivision 2a, or failed to undertake correction
of a prohibited transaction that did occur; or
(12) the relief association pays a defined benefit service pension in an amount that is in
excess of the applicable service pension maximum under section 424A.02, subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019, except the reference to
Minnesota Statutes, chapter 477B, is effective for aids payable in 2020 and thereafter.
new text end
Sec. 25.
Minnesota Statutes 2018, section 424A.092, subdivision 3, is amended to read:
Subd. 3.
Financial requirements of relief association; minimum obligation of
municipality.
(a) During the month of July, the officers of the relief association shall
determine the overall funding balance of the special fund for the current calendar year, the
financial requirements of the special fund for the following calendar year and the minimum
obligation of the municipality with respect to the special fund for the following calendar
year in accordance with the requirements of this subdivision.
(b) The overall funding balance of the special fund for the current calendar year must
be determined in the following manner:
(1) The total accrued liability of the special fund for all active and deferred members of
the relief association as of December 31 of the current year must be calculated under
subdivisions 2 and 2a, if applicable.
(2) The total present assets of the special fund projected to December 31 of the current
year, including receipts by and disbursements from the special fund anticipated to occur on
or before December 31, must be calculated. To the extent possible, for those assets for which
a market value is readily ascertainable, the current market value as of the date of the
calculation for those assets must be utilized in making this calculation. For any asset for
which no market value is readily ascertainable, the cost value or the book value, whichever
is applicable, must be utilized in making this calculation.
(3) The amount of the total present assets of the special fund calculated under clause (2)
must be subtracted from the amount of the total accrued liability of the special fund calculated
under clause (1). If the amount of total present assets exceeds the amount of the total accrued
liability, then the special fund is considered to have a surplus over full funding. If the amount
of the total present assets is less than the amount of the total accrued liability, then the
special fund is considered to have a deficit from full funding. If the amount of total present
assets is equal to the amount of the total accrued liability, then the special fund is considered
to be fully funded.
(c) The financial requirements of the special fund for the following calendar year must
be determined in the following manner:
(1) The total accrued liability of the special fund for all active and deferred members of
the relief association as of December 31 of the calendar year next following the current
calendar year must be calculated under subdivisions 2 and 2a, if applicable.
(2) The increase in the total accrued liability of the special fund for the following calendar
year over the total accrued liability of the special fund for the current year must be calculated.
(3) The amount of anticipated future administrative expenses of the special fund must
be calculated by multiplying the dollar amount of the administrative expenses of the special
fund for the most recent prior calendar year by the factor of 1.035.
(4) If the special fund is fully funded, the financial requirements of the special fund for
the following calendar year are the total of the amounts calculated under clauses (2) and
(3).
(5) If the special fund has a deficit from full funding, the financial requirements of the
special fund for the following calendar year are the financial requirements of the special
fund calculated as though the special fund were fully funded under clause (4) plus an amount
equal to one-tenth of the original amount of the deficit from full funding of the special fund
as determined under clause (2) resulting either from an increase in the amount of the service
pension occurring in the last ten years or from a net annual investment loss occurring during
the last ten years until each increase in the deficit from full funding is fully retired. The
annual amortization contribution under this clause may not exceed the amount of the deficit
from full funding.
(6) If the special fund has a surplus over full funding, the financial requirements of the
special fund for the following calendar year are the financial requirements of the special
fund calculated as though the special fund were fully funded under clause (4) reduced by
an amount equal to one-tenth of the amount of the surplus over full funding of the special
fund.
(d) The minimum obligation of the municipality with respect to the special fund is the
financial requirements of the special fund reduced by the amount of any fire state aid and
police and firefighter retirement supplemental state aid payable under deleted text begin sections 69.011 to
69.051deleted text end new text begin chapter 477B new text end and new text begin section new text end 423A.022 reasonably anticipated to be received by the
municipality for transmittal to the special fund during the following calendar year, an amount
of interest on the assets of the special fund projected to the beginning of the following
calendar year calculated at the rate of five percent per annum, and the amount of any
contributions to the special fund required by the relief association bylaws from the active
members of the relief association reasonably anticipated to be received during the following
calendar year. A reasonable amount of anticipated fire state aid is an amount that does not
exceed the fire state aid actually received in the prior year multiplied by the factor 1.035.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2020 and thereafter.
new text end
Sec. 26.
Minnesota Statutes 2018, section 424A.092, subdivision 4, is amended to read:
Subd. 4.
Certification of financial requirements and minimum municipal obligation;
levy.
(a) The officers of the relief association shall certify the financial requirements of the
special fund of the relief association and the minimum obligation of the municipality with
respect to the special fund of the relief association as determined under subdivision 3 on or
before August 1 of each year. The certification must be made to the entity that is responsible
for satisfying the minimum obligation with respect to the special fund of the relief association.
If the responsible entity is a joint powers entity, the certification must be made in the manner
specified in the joint powers agreement, or if the joint powers agreement is silent on this
point, the certification must be made to the chair of the joint powers board.
(b) The financial requirements of the relief association and the minimum municipal
obligation must be included in the financial report or financial statement under section
deleted text begin 69.051deleted text end new text begin 424A.014new text end . The schedule forms related to the determination of the financial
requirements must be filed with the state auditor by March 31, annually, if the relief
association is required to file a financial statement under section deleted text begin 69.051, subdivision 1adeleted text end new text begin
424A.014, subdivision 2new text end , or by June 30, annually, if the relief association is required to file
a financial report and audit under section deleted text begin 69.051, subdivision 1deleted text end new text begin 424A.014, subdivision 1new text end .
(c) The municipality shall provide for at least the minimum obligation of the municipality
with respect to the special fund of the relief association by tax levy or from any other source
of public revenue.
(d) The municipality may levy taxes for the payment of the minimum municipal obligation
without any limitation as to rate or amount and irrespective of any limitations imposed by
other provisions of law upon the rate or amount of taxation until the balance of the special
fund or any fund of the relief association has attained a specified level. In addition, any
taxes levied under this section must not cause the amount or rate of any other taxes levied
in that year or to be levied in a subsequent year by the municipality which are subject to a
limitation as to rate or amount to be reduced.
(e) If the municipality does not include the full amount of the minimum municipal
obligations in its levy for any year, the officers of the relief association shall certify that
amount to the county auditor, who shall spread a levy in the amount of the certified minimum
municipal obligation on the taxable property of the municipality.
(f) If the state auditor determines that a municipal contribution actually made in a plan
year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause (5), the
state auditor may request a copy of the certifications under this subdivision from the relief
association or from the city. The relief association or the city, whichever applies, must
provide the certifications within 14 days of the date of the request from the state auditor.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 27.
Minnesota Statutes 2018, section 424A.093, subdivision 5, is amended to read:
Subd. 5.
Minimum municipal obligation.
(a) The officers of the relief association shall
determine the minimum obligation of the municipality with respect to the special fund of
the relief association for the following calendar year on or before August 1 of each year in
accordance with the requirements of this subdivision.
(b) The minimum obligation of the municipality with respect to the special fund is an
amount equal to the financial requirements of the special fund of the relief association
determined under subdivision 4, reduced by the estimated amount of any fire state aid and
police and firefighter retirement supplemental state aid payable under deleted text begin sections 69.011 to
69.051deleted text end new text begin chapter 477Bnew text end and new text begin section new text end 423A.022 reasonably anticipated to be received by the
municipality for transmittal to the special fund of the relief association during the following
year and the amount of any anticipated contributions to the special fund required by the
relief association bylaws from the active members of the relief association reasonably
anticipated to be received during the following calendar year. A reasonable amount of
anticipated fire state aid is an amount that does not exceed the fire state aid actually received
in the prior year multiplied by the factor 1.035.
(c) The officers of the relief association shall certify the financial requirements of the
special fund of the relief association and the minimum obligation of the municipality with
respect to the special fund of the relief association as determined under subdivision 4 and
this subdivision by August 1 of each year. The certification must be made to the entity that
is responsible for satisfying the minimum obligation with respect to the special fund of the
relief association. If the responsible entity is a joint powers entity, the certification must be
made in the manner specified in the joint powers agreement, or if the joint powers agreement
is silent on this point, the certification must be made to the chair of the joint powers board.
(d) The financial requirements of the relief association and the minimum municipal
obligation must be included in the financial report or financial statement under section
deleted text begin 69.051deleted text end new text begin 424A.014new text end .
(e) The municipality shall provide for at least the minimum obligation of the municipality
with respect to the special fund of the relief association by tax levy or from any other source
of public revenue. The municipality may levy taxes for the payment of the minimum
municipal obligation without any limitation as to rate or amount and irrespective of any
limitations imposed by other provisions of law or charter upon the rate or amount of taxation
until the balance of the special fund or any fund of the relief association has attained a
specified level. In addition, any taxes levied under this section must not cause the amount
or rate of any other taxes levied in that year or to be levied in a subsequent year by the
municipality which are subject to a limitation as to rate or amount to be reduced.
(f) If the municipality does not include the full amount of the minimum municipal
obligation in its levy for any year, the officers of the relief association shall certify that
amount to the county auditor, who shall spread a levy in the amount of the minimum
municipal obligation on the taxable property of the municipality.
(g) If the state auditor determines that a municipal contribution actually made in a plan
year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause (5), the
state auditor may request from the relief association or from the city a copy of the
certifications under this subdivision. The relief association or the city, whichever applies,
must provide the certifications within 14 days of the date of the request from the state auditor.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019, except the reference to
Minnesota Statutes, chapter 477B, is effective for aids payable in 2020 and thereafter.
new text end
Sec. 28.
Minnesota Statutes 2018, section 424B.09, is amended to read:
424B.09 ADMINISTRATIVE EXPENSES.
The payment of authorized administrative expenses of the subsequent volunteer
firefighters relief association must be from the special fund of the subsequent volunteer
firefighters relief association in accordance with section deleted text begin 69.80deleted text end new text begin 424A.05, subdivision 3bnew text end ,
and as provided for in the bylaws of the subsequent volunteer firefighters relief association
and approved by the board of trustees of the subsequent volunteer firefighters relief
association. The payment of any other expenses of the subsequent volunteer firefighters
relief association must be from the general fund of the subsequent volunteer firefighters
relief association in accordance with section deleted text begin 69.80deleted text end new text begin 424A.05, subdivision 3b,new text end and as provided
for in the bylaws of the subsequent volunteer firefighters relief association and approved
by the board of trustees of the subsequent volunteer firefighters relief association.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 29. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2018, section 69.022,
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 the day following final enactment.
new text end
ARTICLE 22
DEPARTMENT OF REVENUE; MISCELLANEOUS; POLICY CHANGES
Section 1.
Minnesota Statutes 2018, section 270B.08, subdivision 2, is amended to read:
Subd. 2.
Revocationnew text begin or cancellationnew text end .
When a taxpayer's sales tax permit has been
revokednew text begin or cancelednew text end under section 270C.722new text begin or 297A.84new text end , the commissioner may disclosenew text begin
to any personnew text end data identifying the holder of the revokednew text begin or cancelednew text end permit, deleted text begin statingdeleted text end the basis
for the revocationnew text begin or cancellation, the date of the revocation or cancellationnew text end , and deleted text begin stating
whether thedeleted text end new text begin if a revoked or cancelednew text end permit has been reinstatednew text begin , the date upon which the
permit was reinstatednew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2018, section 297A.84, is amended to read:
297A.84 PERMITS ISSUEDnew text begin AND NOT ISSUED; CANCELLATIONnew text end .
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) The following definitions apply for the purposes of this
section.
new text end
new text begin
(b) "Applicant" means an individual, corporation, or partnership. Applicant also includes
any officer of a corporation or member of a partnership.
new text end
new text begin
(c) "Delinquent sales tax" means tax not paid by the date the tax was due and payable
under section 289A.20, subdivision 4, or an assessment not paid if the applicant has been
issued an order assessing sales and use tax under section 270C.33, subdivision 4.
new text end
new text begin Subd. 2. new text end
new text begin Permits issued. new text end
new text begin Except as provided in subdivision 3, new text end the commissioner deleted text begin shalldeleted text end new text begin
mustnew text end issue a permit to each applicant who has complied with section 297A.83, and with
section 297A.92 if security is required. A person is considered to have a permit if the person
has a Minnesota tax identification number issued by the commissioner that is currently
active for taxes imposed by this chapter. A permit is valid until canceled or revoked. It is
not assignable and is valid only for the person in whose name it is granted and for the
transaction of business at the places designated on the permit.
new text begin Subd. 3. new text end
new text begin Permits not issued. new text end
new text begin
(a) Except as provided in paragraph (b), the commissioner
must not issue a permit to an applicant if the applicant is liable for delinquent sales tax.
new text end
new text begin
(b) The commissioner must issue a permit to an applicant if an appeal period of an order
assessing sales tax under section 270C.33, subdivision 5, has not ended. The commissioner
may cancel a permit issued under this paragraph in the manner provided in subdivision 4
if the applicant owes delinquent sales tax after the appeal period has ended.
new text end
new text begin Subd. 4. new text end
new text begin Nonconforming permits; cancellation; reissue. new text end
new text begin
(a) If the commissioner issues
a permit that does not conform with the requirements of this section or applicable rules, the
commissioner may cancel the permit upon notice to the permit holder. The notice must be
served by first class and certified mail at the permit holder's last known address. The
cancellation is effective immediately.
new text end
new text begin
(b) If a permit holder shows that a canceled permit was issued in conformance with the
requirements of this section and applicable rules, the commissioner must reissue the permit.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for permit applications filed after
December 31, 2019.
new text end
Sec. 3.
Minnesota Statutes 2018, section 297A.85, is amended to read:
297A.85 CANCELLATION OF PERMITS.
The commissioner may cancel a permit if one of the following conditions occurs:
(1) the permit holder has not filed a sales or use tax return for at least one year;
(2) the permit holder has not reported any sales or use tax liability on the permit holder's
returns for at least two years;
(3) the permit holder requests cancellation of the permit; deleted text begin or
deleted text end
(4) the permit is subject to cancellation deleted text begin pursuant todeleted text end new text begin undernew text end section 270C.722, subdivision
2, paragraph (a)deleted text begin .deleted text end new text begin ; or
new text end
new text begin
(5) the permit is subject to cancellation under section 297A.84.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for permit applications filed after
December 31, 2019.
new text end
Sec. 4. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2018, section 270C.131,
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 the day following final enactment.
new text end
ARTICLE 23
DEPARTMENT OF REVENUE; MISCELLANEOUS; TECHNICAL CHANGES
Section 1.
Minnesota Statutes 2018, section 272.02, subdivision 27, is amended to read:
Subd. 27.
Superior National Forest; recreational property for use by deleted text begin disableddeleted text end
veteransnew text begin with a disabilitynew text end .
Real and personal property is exempt if it is located in the
Superior National Forest, and owned or leased and operated by a nonprofit organization
that is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue
Code and primarily used to provide recreational opportunities for deleted text begin disableddeleted text end veterans new text begin with a
disability new text end and their families.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2018, section 272.02, subdivision 81, is amended to read:
Subd. 81.
Certain recreational property for deleted text begin disableddeleted text end veteransnew text begin with a disabilitynew text end .
Real
and personal property is exempt if it is located in a county in the metropolitan area with a
population of less than 500,000 according to the 2000 federal census, and owned or leased
and operated by a nonprofit organization, and primarily used to provide recreational
opportunities for deleted text begin disableddeleted text end veterans new text begin with a disability new text end and their families.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2018, section 273.032, is amended to read:
273.032 MARKET VALUE DEFINITION.
(a) Unless otherwise provided, for the purpose of determining any property tax levy
limitation based on market value or any limit on net debt, the issuance of bonds, certificates
of indebtedness, or capital notes based on market value, any qualification to receive state
aid based on market value, or any state aid amount based on market value, the terms "market
value," "estimated market value," and "market valuation," whether equalized or unequalized,
mean the estimated market value of taxable property within the local unit of government
before any of the following or similar adjustments for:
(1) the market value exclusions under:
(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business properties);
(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
(v) section 273.13, subdivision 34 (homestead of a deleted text begin disableddeleted text end veteran new text begin with a disability new text end or
family caregiver); or
(vi) section 273.13, subdivision 35 (homestead market value exclusion); or
(2) the deferment of value under:
(i) the Minnesota Agricultural Property Tax Law, section 273.111;
(ii) the Aggregate Resource Preservation Law, section 273.1115;
(iii) the Minnesota Open Space Property Tax Law, section 273.112;
(iv) the rural preserves property tax program, section 273.114; or
(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
(3) the adjustments to tax capacity for:
(i) tax increment financing under sections 469.174 to 469.1794;
(ii) fiscal disparities under chapter 276A or 473F; or
(iii) powerline credit under section 273.425.
(b) Estimated market value under paragraph (a) also includes the market value of
tax-exempt property if the applicable law specifically provides that the limitation,
qualification, or aid calculation includes tax-exempt property.
(c) Unless otherwise provided, "market value," "estimated market value," and "market
valuation" for purposes of property tax levy limitations and calculation of state aid, refer
to the estimated market value for the previous assessment year and for purposes of limits
on net debt, the issuance of bonds, certificates of indebtedness, or capital notes refer to the
estimated market value as last finally equalized.
(d) For purposes of a provision of a home rule charter or of any special law that is not
codified in the statutes and that imposes a levy limitation based on market value or any limit
on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
value, the terms "market value," "taxable market value," and "market valuation," whether
equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2018, section 273.13, subdivision 22, is amended to read:
Subd. 22.
Class 1.
(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.
The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.
(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:
(1) any person who is blind as defined in section 256D.35, or the deleted text begin blinddeleted text end person new text begin who is
blind new text end and the deleted text begin blind person'sdeleted text end spousenew text begin of the person who is blindnew text end ;
(2) any person who is permanently and totally disabled or by the deleted text begin disableddeleted text end person new text begin with
a disability new text end and the deleted text begin disabled person'sdeleted text end spousenew text begin of the person with a disabilitynew text end ; or
(3) the surviving spouse of a new text begin veteran who was new text end permanently and totally disabled deleted text begin veterandeleted text end
homesteading a property classified under this paragraph for taxes payable in 2008.
Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.
Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.
Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of .45 percent of its market value. The remaining market
value of class 1b property is classified as class 1a or class 2a property, whichever is
appropriate.
(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
the Department of Natural Resources, and is devoted to temporary and seasonal residential
occupancy for recreational purposes but not devoted to commercial purposes for more than
250 days in the year preceding the year of assessment, and that includes a portion used as
a homestead by the owner, which includes a dwelling occupied as a homestead by a
shareholder of a corporation that owns the resort, a partner in a partnership that owns the
resort, or a member of a limited liability company that owns the resort even if the title to
the homestead is held by the corporation, partnership, or limited liability company. For
purposes of this paragraph, property is devoted to a commercial purpose on a specific day
if any portion of the property, excluding the portion used exclusively as a homestead, is
used for residential occupancy and a fee is charged for residential occupancy. Class 1c
property must contain three or more rental units. A "rental unit" is defined as a cabin,
condominium, townhouse, sleeping room, or individual camping site equipped with water
and electrical hookups for recreational vehicles. Class 1c property must provide recreational
activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill
or cross-country ski equipment; provide marina services, launch services, or guide services;
or sell bait and fishing tackle. Any unit in which the right to use the property is transferred
to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
for class 1c even though it may remain available for rent. A camping pad offered for rent
by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
the same owner owns two separate parcels that are located in the same township, and one
of those properties is classified as a class 1c property and the other would be eligible to be
classified as a class 1c property if it was used as the homestead of the owner, both properties
will be assessed as a single class 1c property; for purposes of this sentence, properties are
deemed to be owned by the same owner if each of them is owned by a limited liability
company, and both limited liability companies have the same membership. The portion of
the property used as a homestead is class 1a property under paragraph (a). The remainder
of the property is classified as follows: the first $600,000 of market value is tier I, the next
$1,700,000 of market value is tier II, and any remaining market value is tier III. The
classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25
percent. Owners of real and personal property devoted to temporary and seasonal residential
occupancy for recreation purposes in which all or a portion of the property was devoted to
commercial purposes for not more than 250 days in the year preceding the year of assessment
desiring classification as class 1c, must submit a declaration to the assessor designating the
cabins or units occupied for 250 days or less in the year preceding the year of assessment
by January 15 of the assessment year. Those cabins or units and a proportionate share of
the land on which they are located must be designated as class 1c as otherwise provided.
The remainder of the cabins or units and a proportionate share of the land on which they
are located must be designated as class 3a commercial. The owner of property desiring
designation as class 1c property must provide guest registers or other records demonstrating
that the units for which class 1c designation is sought were not occupied for more than 250
days in the year preceding the assessment if so requested. The portion of a property operated
as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5)
other nonresidential facility operated on a commercial basis not directly related to temporary
and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
(d) Class 1d property includes structures that meet all of the following criteria:
(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;
(2) the structure is occupied exclusively by seasonal farm workers during the time when
they work on that farm, and the occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of farm equipment and produce
does not disqualify the property from classification under this paragraph;
(3) the structure meets all applicable health and safety requirements for the appropriate
season; and
(4) the structure is not salable as residential property because it does not comply with
local ordinances relating to location in relation to streets or roads.
The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2018, section 273.13, subdivision 34, is amended to read:
Subd. 34.
Homestead of deleted text begin disableddeleted text end veteran new text begin with a disability new text end or family caregiver.
(a)
All or a portion of the market value of property owned by a veteran and serving as the
veteran's homestead under this section is excluded in determining the property's taxable
market value if the veteran has a service-connected disability of 70 percent or more as
certified by the United States Department of Veterans Affairs. To qualify for exclusion
under this subdivision, the veteran must have been honorably discharged from the United
States armed forces, as indicated by United States Government Form DD214 or other official
military discharge papers.
(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded,
except as provided in clause (2); and
(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.
(c) If a deleted text begin disableddeleted text end veteran new text begin with a disability new text end qualifying for a valuation exclusion under
paragraph (b), clause (2), predeceases the veteran's spouse, and if upon the death of the
veteran the spouse holds the legal or beneficial title to the homestead and permanently
resides there, the exclusion shall carry over to the benefit of the veteran's spouse for the
current taxes payable year and for eight additional taxes payable years or until such time
as the spouse remarries, or sells, transfers, or otherwise disposes of the property, whichever
comes first. Qualification under this paragraph requires an application under paragraph (h),
and a spouse must notify the assessor if there is a change in the spouse's marital status,
ownership of the property, or use of the property as a permanent residence.
(d) If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service-connected cause while serving honorably in active service, as
indicated on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is entitled to the
benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such
time as the spouse remarries or sells, transfers, or otherwise disposes of the property,
whichever comes first.
(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
for under paragraph (b).
(f) In the case of an agricultural homestead, only the portion of the property consisting
of the house and garage and immediately surrounding one acre of land qualifies for the
valuation exclusion under this subdivision.
(g) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 35, or classification under subdivision 22,
paragraph (b).
(h) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by July 1 of the first assessment year for which the exclusion is sought.
For an application received after July 1, the exclusion shall become effective for the following
assessment year. Except as provided in paragraph (c), the owner of a property that has been
accepted for a valuation exclusion must notify the assessor if there is a change in ownership
of the property or in the use of the property as a homestead.
(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.
(j) For purposes of this subdivision:
(1) "active service" has the meaning given in section 190.05;
(2) "own" means that the person's name is present as an owner on the property deed;
(3) "primary family caregiver" means a person who is approved by the secretary of the
United States Department of Veterans Affairs for assistance as the primary provider of
personal care services for an eligible veteran under the Program of Comprehensive Assistance
for Family Caregivers, codified as United States Code, title 38, section 1720G; and
(4) "veteran" has the meaning given the term in section 197.447.
(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion
under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit
under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries
or sells, transfers, or otherwise disposes of the property if:
(1) the spouse files a first-time application within two years of the death of the service
member or by June 1, 2019, whichever is later;
(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
homestead and permanently resides there;
(3) the veteran met the honorable discharge requirements of paragraph (a); and
(4) the United States Department of Veterans Affairs certifies that:
(i) the veteran met the total (100 percent) and permanent disability requirement under
paragraph (b), clause (2); or
(ii) the spouse has been awarded dependency and indemnity compensation.
(l) The purpose of this provision of law providing a level of homestead property tax
relief for deleted text begin gravely disableddeleted text end veteransnew text begin with a disabilitynew text end , their primary family caregivers, and
their surviving spouses is to help ease the burdens of war for those among our state's citizens
who bear those burdens most heavily.
(m) By July 1, the county veterans service officer must certify the disability rating and
permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2018, section 289A.08, subdivision 6, is amended to read:
Subd. 6.
Returns of married persons.
deleted text begin A husband and wifedeleted text end new text begin Individuals who are married
to each othernew text end must file a joint Minnesota income tax return if they filed a joint federal income
tax return. If the deleted text begin husband and wifedeleted text end new text begin spousesnew text end have elected to file separate federal income tax
returns, they must file separate Minnesota income tax returns. This election to file a joint
or separate return must be changed if they change their election for federal purposes. In the
event taxpayers desire to change their election, the change must be done in the manner and
on the form prescribed by the commissioner.
The determination of whether an individual is married shall be made under the provisions
of section 7703 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2018, section 289A.25, subdivision 1, is amended to read:
Subdivision 1.
Requirements to pay.
An individual, trust, S corporation, or partnership
must, when prescribed in subdivision 3, paragraph (b), make payments of estimated tax.
For individuals, the term "estimated tax" means the amount the taxpayer estimates is the
sum of the taxes imposed by chapter 290 for the taxable year. For trusts, S corporations,
and partnerships, the term estimated tax means the amount the taxpayer estimates is the
sum of the taxes for the taxable year imposed by chapter 290 and the composite income tax
imposed by section 289A.08, subdivision 7. If the individual is an infant or incompetent
person, the payments must be made by the individual's guardian. If joint payments on
estimated tax are made but a joint return is not made for the taxable year, the estimated tax
for that year may be treated as the estimated tax of either deleted text begin the husband or the wifedeleted text end new text begin spousenew text end or
may be divided between them.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2018, section 289A.31, subdivision 2, is amended to read:
Subd. 2.
Joint income tax returns.
(a) If a joint income tax return is made by deleted text begin a husband
and wifedeleted text end new text begin spousesnew text end , the liability for the tax is joint and several. A spouse who qualifies for
relief from a liability attributable to an underpayment under section 6015(b) of the Internal
Revenue Code is relieved of the state income tax liability on the underpayment.
(b) In the case of individuals who were deleted text begin a husband and wifedeleted text end new text begin married as determined in
section 7703 of the Internal Revenue Codenew text end prior to the dissolution of their marriage or their
legal separation, or prior to the death of one of the individuals, for tax liabilities reported
on a joint or combined return, the liability of each person is limited to the proportion of the
tax due on the return that equals that person's proportion of the total tax due if deleted text begin the husband
and wifedeleted text end new text begin each spousenew text end filed separate returns for the taxable year. This provision is effective
only when the commissioner receives written notice of the marriage dissolution, legal
separation, or death of a spouse from the deleted text begin husband or wifedeleted text end new text begin surviving spousenew text end . No refund may
be claimed by an ex-spouse, legally separated or widowed spouse for any taxes paid more
than 60 days before receipt by the commissioner of the written notice.
(c) A request for calculation of separate liability pursuant to paragraph (b) for taxes
reported on a return must be made within six years after the due date of the return. For
calculation of separate liability for taxes assessed by the commissioner under section 289A.35
or 289A.37, the request must be made within six years after the date of assessment. The
commissioner is not required to calculate separate liability if the remaining unpaid liability
for which recalculation is requested is $100 or less.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2018, section 289A.37, subdivision 6, is amended to read:
Subd. 6.
Order of assessment if joint income tax return.
If a joint income tax return
is filed by deleted text begin a husband and wifedeleted text end new text begin spousesnew text end , an order of assessment may be a single joint notice.
If the commissioner has been notified by either spouse that that spouse's address has changed
and if that spouse requests it, then, instead of the single joint notice mailed to the last known
address of the deleted text begin husband and wifedeleted text end new text begin spousesnew text end , a duplicate or original of the joint notice must be
sent to the requesting spouse at the address designated by the requesting spouse. The other
joint notice must be mailed to the other spouse at that spouse's last known address. An
assessment is not invalid for failure to send it to a spouse if the spouse actually receives the
notice in the same period as if it had been mailed to that spouse at the correct address or if
the spouse has failed to provide an address to the commissioner other than the last known
address.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2018, section 290.0802, subdivision 2, is amended to read:
Subd. 2.
Subtraction.
(a) A qualified individual is allowed a subtraction from federal
taxable income of the individual's subtraction base amount. The excess of the subtraction
base amount over the taxable net income computed without regard to the subtraction for
the elderly or deleted text begin disableddeleted text end new text begin a person with a disabilitynew text end under section 290.0132, subdivision 5,
may be used to reduce the amount of a lump sum distribution subject to tax under section
290.032.
(b)(1) The initial subtraction base amount equals
(i) $12,000 for a married taxpayer filing a joint return if a spouse is a qualified individual,
(ii) $9,600 for a single taxpayer, and
(iii) $6,000 for a married taxpayer filing a separate federal return.
(2) The qualified individual's initial subtraction base amount, then, must be reduced by
the sum of nontaxable retirement and disability benefits and one-half of the amount of
adjusted gross income in excess of the following thresholds:
(i) $18,000 for a married taxpayer filing a joint return if both spouses are qualified
individuals,
(ii) $14,500 for a single taxpayer or for a married couple filing a joint return if only one
spouse is a qualified individual, and
(iii) $9,000 for a married taxpayer filing a separate federal return.
(3) In the case of a qualified individual who is under the age of 65, the maximum amount
of the subtraction base may not exceed the taxpayer's disability income.
(4) The resulting amount is the subtraction base amount.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 11.
Minnesota Statutes 2018, section 290.0802, subdivision 3, is amended to read:
Subd. 3.
Restrictions; married couples.
Except in the case of deleted text begin a husband and wifedeleted text end new text begin
spousesnew text end who live apart at all times during the taxable year, if the taxpayer is married at the
close of the taxable year, the subtraction under subdivision 2 is allowable only if the taxpayers
file joint federal and state income tax returns for the taxable year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2018, section 290.091, subdivision 2, is amended to read:
Subd. 2.
Definitions.
For purposes of the tax imposed by this section, the following
terms have the meanings given.
(a) "Alternative minimum taxable income" means the sum of the following for the taxable
year:
(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
taxable income, but excluding:
(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
(ii) the medical expense deduction;
(iii) the casualty, theft, and disaster loss deduction; and
(iv) the impairment-related work expenses of a deleted text begin disableddeleted text end personnew text begin with a disabilitynew text end ;
(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2; and
(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;
less the sum of the amounts determined under the following:
(i) interest income as defined in section 290.0132, subdivision 2;
(ii) an overpayment of state income tax as provided by section 290.0132, subdivision
3, to the extent included in federal alternative minimum taxable income;
(iii) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing federal adjusted gross income;
(iv) amounts subtracted from federal taxable income as provided by section 290.0132,
subdivisions 7, 9 to 15, 17, 21, 24, and 26; and
(v) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c).
In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Code.
(b) "Investment interest" means investment interest as defined in section 163(d)(3) of
the Internal Revenue Code.
(c) "Net minimum tax" means the minimum tax imposed by this section.
(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
under this chapter.
(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13.
Minnesota Statutes 2018, section 290A.03, subdivision 3, is amended to read:
Subd. 3.
Income.
(a) "Income" means the sum of the following:
(1) federal adjusted gross income as defined in the Internal Revenue Code; and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;
(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;
(xiii) nontaxable scholarship or fellowship grants;
(xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;
(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and
(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.
(b) "Income" does not include:
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;
(4) surplus food or other relief in kind supplied by a governmental agency;
(5) relief granted under this chapter;
(6) child support payments received under a temporary or final decree of dissolution or
legal separation; or
(7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16.
(c) The sum of the following amounts may be subtracted from income:
(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(5) for the claimant's fifth dependent, the exemption amount; and
(6) if the claimant or claimant's spouse deleted text begin was disableddeleted text end new text begin had a disabilitynew text end or attained the age
of 65 on or before December 31 of the year for which the taxes were levied or rent paid,
the exemption amount.
(d) For purposes of this subdivision, the "exemption amount" means the exemption
amount under section 151(d) of the Internal Revenue Code for the taxable year for which
the income is reported; "retirement base amount" means the deductible amount for the
taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue
Code, adjusted for inflation as provided in section 219(b)(5)(C) of the Internal Revenue
Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional
or Roth style retirement account or plan" means retirement plans under sections 401, 403,
408, 408A, and 457 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2018, section 290A.03, subdivision 4, is amended to read:
Subd. 4.
Household.
"Household" means a claimant and an individual related to the
claimant as deleted text begin husband or wifedeleted text end new text begin the claimant's spousenew text end who are domiciled in the same homestead.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 15.
Minnesota Statutes 2018, section 290A.03, subdivision 8, is amended to read:
Subd. 8.
Claimant.
(a) "Claimant" means a person, other than a dependent, as defined
under sections 151 and 152 of the Internal Revenue Code disregarding section 152(b)(3)
of the Internal Revenue Code, who filed a claim authorized by this chapter and who was a
resident of this state as provided in chapter 290 during the calendar year for which the claim
for relief was filed.
(b) In the case of a claim relating to rent constituting property taxes, the claimant shall
have resided in a rented or leased unit on which ad valorem taxes or payments made in lieu
of ad valorem taxes, including payments of special assessments imposed in lieu of ad valorem
taxes, are payable at some time during the calendar year covered by the claim.
(c) "Claimant" shall not include a resident of a nursing home, intermediate care facility,
long-term residential facility, or a facility that accepts housing support payments whose
rent constituting property taxes is paid pursuant to the Supplemental Security Income
program under title XVI of the Social Security Act, the Minnesota supplemental aid program
under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
of the Social Security Act, or the housing support program under chapter 256I.
If only a portion of the rent constituting property taxes is paid by these programs, the
resident shall be a claimant for purposes of this chapter, but the refund calculated pursuant
to section 290A.04 shall be multiplied by a fraction, the numerator of which is income as
defined in subdivision 3, paragraphs (a) and (b), reduced by the total amount of income
from the above sources other than vendor payments under the medical assistance program
and the denominator of which is income as defined in subdivision 3, paragraphs (a) and (b),
plus vendor payments under the medical assistance program, to determine the allowable
refund pursuant to this chapter.
(d) Notwithstanding paragraph (c), if the claimant was a resident of the nursing home,
intermediate care facility, long-term residential facility, or facility for which the rent was
paid for the claimant by the housing support program for only a portion of the calendar year
covered by the claim, the claimant may compute rent constituting property taxes by
disregarding the rent constituting property taxes from the nursing home or facility and use
only that amount of rent constituting property taxes or property taxes payable relating to
that portion of the year when the claimant was not in the facility. The claimant's household
income is the income for the entire calendar year covered by the claim.
(e) In the case of a claim for rent constituting property taxes of a part-year Minnesota
resident, the income and rental reflected in this computation shall be for the period of
Minnesota residency only. Any rental expenses paid which may be reflected in arriving at
federal adjusted gross income cannot be utilized for this computation. When two individuals
of a household are able to meet the qualifications for a claimant, they may determine among
them as to who the claimant shall be. If they are unable to agree, the matter shall be referred
to the commissioner of revenue whose decision shall be final. If a homestead property owner
was a part-year Minnesota resident, the income reflected in the computation made pursuant
to section 290A.04 shall be for the entire calendar year, including income not assignable to
Minnesota.
(f) If a homestead is occupied by two or more renters, who are not deleted text begin husband and wifedeleted text end new text begin
married to each othernew text end , the rent shall be deemed to be paid equally by each, and separate
claims shall be filed by each. The income of each shall be each renter's household income
for purposes of computing the amount of credit to be allowed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 16.
Minnesota Statutes 2018, section 290A.05, is amended to read:
290A.05 COMBINED HOUSEHOLD INCOME.
If a person occupies a homestead with another person deleted text begin or personsdeleted text end not related to the person
as deleted text begin husband and wifedeleted text end new text begin the person's spousenew text end , excluding dependents, roomers or boarders on
contract, and has property tax payable with respect to the homestead, the household income
of the claimant or claimants for the purpose of computing the refund allowed by section
290A.04 shall include the total income received by the other persons residing in the
homestead. For purposes of this section, "dependent" includes a parent of the claimant or
spouse who lives in the claimant's homestead and does not have an ownership interest in
the homestead. If a person occupies a homestead with another person or persons not relatednew text begin
to the personnew text end as deleted text begin husband and wifedeleted text end new text begin the person's spousenew text end or as dependents, the property tax
payable or rent constituting property tax shall be reduced as follows.
If the other person or persons are residing at the homestead under rental or lease
agreement, the amount of property tax payable or rent constituting property tax shall be that
portion not covered by the rental agreement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 17.
Minnesota Statutes 2018, section 290A.08, is amended to read:
290A.08 ONE CLAIMANT PER HOUSEHOLD.
Only one claimant per household per year is entitled to relief under this chapter. Payment
of the claim for relief may be made payable to the deleted text begin husband and wifedeleted text end new text begin spousesnew text end as one claimant.
The commissioner, upon written request, may issue separate checks, to the deleted text begin husband and
wifedeleted text end new text begin spousesnew text end for one-half of the relief provided the original check has not been issued or
has been returned. Individuals related as deleted text begin husband and wifedeleted text end new text begin spousesnew text end who were married during
the year may elect to file a joint claim which shall include each spouse's income, rent
constituting property taxes, and property taxes payable. deleted text begin Husbands and wivesdeleted text end new text begin Spousesnew text end who
were married for the entire year and were domiciled in the same household for the entire
year must file a joint claim. The maximum dollar amount allowable for a joint claim shall
not exceed the amount that one person could receive.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18.
Minnesota Statutes 2018, section 290A.09, is amended to read:
290A.09 PROOF OF CLAIM.
Every claimant shall supply to the commissioner of revenue, in support of the claim,
proof of eligibility under this chapter, including but not limited to amount of rent paid or
property taxes accrued, name and address of owner or managing agent of property rented,
changes in homestead, household membership, household income, size and nature of property
claimed as a homestead.
deleted text begin Disableddeleted text end Personsnew text begin with a disabilitynew text end filing claims shall submit proof of disability in the
form and manner as the commissioner may prescribe. The department may require
examination and certification by the claimant's physician or by a physician designated by
the commissioner. The cost of any examination shall be borne by the claimant, unless the
examination proves the disability, in which case the cost of the examination shall be borne
by the commissioner.
A determination of disability of a claimant by the Social Security Administration under
Title II or Title XVI of the Social Security Act shall constitute presumptive proof of disability.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19.
Minnesota Statutes 2018, section 297A.61, subdivision 18, is amended to read:
Subd. 18.
deleted text begin Disableddeleted text end new text begin Person with a disabilitynew text end .
"deleted text begin Disableddeleted text end new text begin Person with a disabilitynew text end " means
an individual who has a permanent and total disability as defined in section 273.13,
subdivision 22.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 20.
Minnesota Statutes 2018, section 297A.67, subdivision 6, is amended to read:
Subd. 6.
Other exempt meals.
(a) Prepared food, candy, and soft drinks purchased for
and served exclusively to individuals who are 60 years of age or over and their spouses or
to deleted text begin disableddeleted text end personsnew text begin with a disabilitynew text end and their spouses by governmental agencies, nonprofit
organizations, or churches, or pursuant to any program funded in whole or in part through
United States Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or
served, are exempt. Taxable food sold through vending machines is not exempt.
(b) Prepared food, candy, and soft drinks purchased for and served exclusively to children
who are less than 14 years of age or deleted text begin disableddeleted text end childrennew text begin with a disabilitynew text end who are less than
16 years of age and who are attending a child care or early childhood education program,
are exempt if they are:
(1) purchased by a nonprofit child care facility that is exempt under section 297A.70,
subdivision 4, and that primarily serves families with income of 250 percent or less of
federal poverty guidelines; and
(2) prepared at the site of the child care facility.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 21.
Minnesota Statutes 2018, section 297A.67, subdivision 12, is amended to read:
Subd. 12.
Parts and accessories used to make a motor vehicle deleted text begin disableddeleted text end accessiblenew text begin
to a person with a disabilitynew text end .
Parts, accessories, and labor charges that are used solely to
modify a motor vehicle to make it deleted text begin disableddeleted text end accessiblenew text begin to persons with a disabilitynew text end are exempt.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 22.
Minnesota Statutes 2018, section 297A.70, subdivision 3, is amended to read:
Subd. 3.
Sales of certain goods and services to government.
(a) The following sales
to or use by the specified governments and political subdivisions of the state are exempt:
(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and fire
apparatus to a political subdivision;
(2) machinery and equipment, except for motor vehicles, used directly for mixed
municipal solid waste management services at a solid waste disposal facility as defined in
section 115A.03, subdivision 10;
(3) chore and homemaking services to a political subdivision of the state to be provided
to elderlynew text begin individualsnew text end or deleted text begin disabled individualsdeleted text end new text begin persons with a disabilitynew text end ;
(4) telephone services to the Office of MN.IT Services that are used to provide
telecommunications services through the MN.IT services revolving fund;
(5) firefighter personal protective equipment as defined in paragraph (b), if purchased
or authorized by and for the use of an organized fire department, fire protection district, or
fire company regularly charged with the responsibility of providing fire protection to the
state or a political subdivision;
(6) bullet-resistant body armor that provides the wearer with ballistic and trauma
protection, if purchased by a law enforcement agency of the state or a political subdivision
of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1;
(7) motor vehicles purchased or leased by political subdivisions of the state if the vehicles
are exempt from registration under section 168.012, subdivision 1, paragraph (b), exempt
from taxation under section 473.448, or exempt from the motor vehicle sales tax under
section 297B.03, clause (12);
(8) equipment designed to process, dewater, and recycle biosolids for wastewater
treatment facilities of political subdivisions, and materials incidental to installation of that
equipment;
(9) the removal of trees, bushes, or shrubs for the construction and maintenance of roads,
trails, or firebreaks when purchased by an agency of the state or a political subdivision of
the state;
(10) purchases by the Metropolitan Council or the Department of Transportation of
vehicles and repair parts to equip operations provided for in section 174.90, including, but
not limited to, the Northstar Corridor Rail project; and
(11) purchases of water used directly in providing public safety services by an organized
fire department, fire protection district, or fire company regularly charged with the
responsibility of providing fire protection to the state or a political subdivision.
(b) For purposes of this subdivision, "firefighters personal protective equipment" means
helmets, including face shields, chin straps, and neck liners; bunker coats and pants, including
pant suspenders; boots; gloves; head covers or hoods; wildfire jackets; protective coveralls;
goggles; self-contained breathing apparatus; canister filter masks; personal alert safety
systems; spanner belts; optical or thermal imaging search devices; and all safety equipment
required by the Occupational Safety and Health Administration.
(c) For purchases of items listed in paragraph (a), clause (10), the tax must be imposed
and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded
in the manner provided in section 297A.75.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 23.
Minnesota Statutes 2018, section 297A.70, subdivision 4, is amended to read:
Subd. 4.
Sales to nonprofit groups.
(a) All sales, except those listed in paragraph (b),
to the following "nonprofit organizations" are exempt:
(1) a corporation, society, association, foundation, or institution organized and operated
exclusively for charitable, religious, or educational purposes if the item purchased is used
in the performance of charitable, religious, or educational functions;
(2) any senior citizen group or association of groups that:
(i) in general limits membership to persons who are either age 55 or older, or deleted text begin physically
disableddeleted text end new text begin persons with a physical disabilitynew text end ;
(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit
purposes, not including housing, no part of the net earnings of which inures to the benefit
of any private shareholders; and
(iii) is an exempt organization under section 501(c) of the Internal Revenue Code; and
(3) an organization that qualifies for an exemption for memberships under subdivision
12 if the item is purchased and used in the performance of the organization's mission.
For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery
owned by a religious organization.
(b) This exemption does not apply to the following sales:
(1) building, construction, or reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the construction, alteration, or
repair of a building or facility;
(2) construction materials purchased by tax-exempt entities or their contractors to be
used in constructing buildings or facilities that will not be used principally by the tax-exempt
entities;
(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2),
and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67,
subdivision 2, except wine purchased by an established religious organization for sacramental
purposes or as allowed under subdivision 9a; and
(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as
provided in paragraph (c).
(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01,
subdivision 11, only if the vehicle is:
(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and used
for carrying more than nine persons including the driver; and
(2) intended to be used primarily to transport tangible personal property or individuals,
other than employees, to whom the organization provides service in performing its charitable,
religious, or educational purpose.
(d) A limited liability company also qualifies for exemption under this subdivision if
(1) it consists of a sole member that would qualify for the exemption, and (2) the items
purchased qualify for the exemption.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 24.
Minnesota Statutes 2018, section 297A.70, subdivision 16, is amended to read:
Subd. 16.
Camp fees.
Fees to camps or other recreation facilities are exempt for:
(1) services primarily for children, adults accompanying children, or persons with
deleted text begin disabilitiesdeleted text end new text begin a disabilitynew text end ; or
(2) educational or religious activities;
deleted text begin anddeleted text end new text begin ifnew text end the camp or facilities are owned and operated by an exempt organization under section
501(c)(3) of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 25.
Minnesota Statutes 2018, section 297A.71, subdivision 22, is amended to read:
Subd. 22.
Materials used to make residential property deleted text begin disableddeleted text end accessiblenew text begin to persons
with a disabilitynew text end .
Building materials and equipment sold to, or stored, used, or consumed
by, a nonprofit organization are exempt if:
(1) the materials and equipment are used or incorporated into modifying an existing
residential structure to make it deleted text begin disableddeleted text end accessiblenew text begin to persons with a disabilitynew text end ; and
(2) the materials and equipment used in the modification would qualify for an exemption
under either subdivision 11 or 12 if made by the current owner of the residence.
For purposes of this subdivision, "nonprofit organization" means any nonprofit
corporation, society, association, foundation, or institution organized and operated exclusively
for charitable, religious, educational, or civic purposes; or a veterans' group exempt from
federal taxation under section 501(c), clause (19), of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 26.
Minnesota Statutes 2018, section 297A.75, subdivision 1, is amended to read:
Subdivision 1.
Tax collected.
The tax on the gross receipts from the sale of the following
exempt items must be imposed and collected as if the sale were taxable and the rate under
section 297A.62, subdivision 1, applied. The exempt items include:
(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;
(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14;
(3) building materials for correctional facilities under section 297A.71, subdivision 3;
(4) building materials used in a residence for deleted text begin disableddeleted text end veteransnew text begin with a disabilitynew text end exempt
under section 297A.71, subdivision 11;
(5) elevators and building materials exempt under section 297A.71, subdivision 12;
(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;
(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;
(8) equipment and materials used for the generation, transmission, and distribution of
electrical energy and an aerial camera package exempt under section 297A.68, subdivision
37;
(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);
(10) materials, supplies, and equipment for construction or improvement of projects and
facilities under section 297A.71, subdivision 40;
(11) materials, supplies, and equipment for construction, improvement, or expansion
of:
(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014,
section 297A.71, subdivision 42;
(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
45;
(iii) a research and development facility exempt under Minnesota Statutes 2014, section
297A.71, subdivision 46; and
(iv) an industrial measurement manufacturing and controls facility exempt under
Minnesota Statutes 2014, section 297A.71, subdivision 47;
(12) enterprise information technology equipment and computer software for use in a
qualified data center exempt under section 297A.68, subdivision 42;
(13) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
(14) items purchased for use in providing critical access dental services exempt under
section 297A.70, subdivision 7, paragraph (c);
(15) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44;
(16) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 49; and
(17) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 50, paragraph (b).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 27.
Minnesota Statutes 2018, section 297B.01, subdivision 14, is amended to read:
Subd. 14.
Purchase price.
(a) "Purchase price" means the total consideration valued in
money for a sale, whether paid in money or otherwise. The purchase price excludes the
amount of a manufacturer's rebate paid or payable to the purchaser. If a motor vehicle is
taken in trade as a credit or as part payment on a motor vehicle taxable under this chapter,
the credit or trade-in value allowed by the person selling the motor vehicle shall be deducted
from the total selling price to establish the purchase price of the vehicle being sold and the
trade-in allowance allowed by the seller shall constitute the purchase price of the motor
vehicle accepted as a trade-in. The purchase price in those instances where the motor vehicle
is acquired by gift or by any other transfer for a nominal or no monetary consideration shall
also include the average value of similar motor vehicles, established by standards and guides
as determined by the motor vehicle registrar. The purchase price in those instances where
a motor vehicle is manufactured by a person who registers it under the laws of this state
shall mean the manufactured cost of such motor vehicle and manufactured cost shall mean
the amount expended for materials, labor, and other properly allocable costs of manufacture,
except that in the absence of actual expenditures for the manufacture of a part or all of the
motor vehicle, manufactured costs shall mean the reasonable value of the completed motor
vehicle.
(b) The term "purchase price" shall not include the portion of the value of a motor vehicle
due solely to modifications necessary to make the motor vehicle deleted text begin disabilitydeleted text end accessiblenew text begin to
persons with a disabilitynew text end .
(c) The term "purchase price" shall not include the transfer of a motor vehicle by way
of gift between deleted text begin a husband and wifedeleted text end new text begin spousesnew text end or parent and child, or to a nonprofit organization
as provided under subdivision 16, paragraph (c), clause (6), nor shall it include the transfer
of a motor vehicle by a guardian to a ward when there is no monetary consideration and the
title to such vehicle was registered in the name of the guardian, as guardian, only because
the ward was a minor.
(d) The term "purchase price" shall not include the transfer of a motor vehicle as a gift
between a foster parent and foster child. For purposes of this subdivision, a foster relationship
exists, regardless of the age of the child, if (1) a foster parent's home is or was licensed as
a foster family home under Minnesota Rules, parts 2960.3000 to 2960.3340, and (2) the
county verifies that the child was a state ward or in permanent foster care.
(e) There shall not be included in "purchase price" the amount of any tax imposed by
the United States upon or with respect to retail sales whether imposed upon the retailer or
the consumer.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 28.
Minnesota Statutes 2018, section 297B.01, subdivision 16, is amended to read:
Subd. 16.
Sale, sells, selling, purchase, purchased, or acquired.
(a) "Sale," "sells,"
"selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor
vehicle, whether absolutely or conditionally, for a consideration in money or by exchange
or barter for any purpose other than resale in the regular course of business.
(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or
by holding it in an effort to so lease it, and which is put to no other use by the owner other
than resale after such lease or effort to lease, shall be considered property purchased for
resale.
(c) The terms also shall include any transfer of title or ownership of a motor vehicle by
other means, for or without consideration, except that these terms shall not include:
(1) the acquisition of a motor vehicle by inheritance from or by bequest of, or
transfer-on-death of title by, a decedent who owned it;
(2) the transfer of a motor vehicle which was previously licensed in the names of two
or more joint tenants and subsequently transferred without monetary consideration to one
or more of the joint tenants;
(3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer
licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with
no monetary or other consideration or expectation of consideration and the parties to the
transfer submit an affidavit to that effect at the time the title transfer is recorded;
(4) the transfer of a motor vehicle by gift between:
(i) spouses;
(ii) parents and a child; or
(iii) grandparents and a grandchild;
(5) the voluntary or involuntary transfer of a motor vehicle between deleted text begin a husband and wifedeleted text end new text begin
spousesnew text end in a divorce proceeding; or
(6) the transfer of a motor vehicle by way of a gift to an organization that is exempt from
federal income taxation under section 501(c)(3) of the Internal Revenue Code when the
motor vehicle will be used exclusively for religious, charitable, or educational purposes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 29.
Minnesota Statutes 2018, section 298.018, subdivision 1, is amended to read:
Subdivision 1.
Within taconite assistance area.
The proceeds of the tax paid under
sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
taconite assistance area defined in section 273.1341, shall be allocated as follows:
(1) five percent to the city or town within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one taxing
district, the commissioner shall apportion equitably the proceeds among the cities and towns
by attributing 50 percent of the proceeds of the tax to the operation of mining or extraction,
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 the respective
operations performed in each taxing district;
(2) ten percent to the taconite municipal aid account to be distributed as provided in
section 298.282new text begin , subdivisions 1 and 2, on the dates provided under this sectionnew text end ;
(3) ten percent to the school district within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one school
district, distribution among the school districts must be based on the apportionment formula
prescribed in clause (1);
(4) 20 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 distributions;
(5) 20 percent to the county within which the minerals or energy resources are mined
or extracted, or within which the concentrate was produced. If the mining and concentration,
or different steps in either process, are carried on in more than one county, distribution
among the counties must be based on the apportionment formula prescribed in clause (1),
provided that any county receiving distributions under this clause shall pay one percent of
its proceeds to the Range Association of Municipalities and Schools;
(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed
as provided in sections 273.134 to 273.136;
(7) five percent to the commissioner of Iron Range resources and rehabilitation for the
purposes of section 298.22;
(8) three percent to the Douglas J. Johnson economic protection trust fund; and
(9) seven percent to the taconite environmental protection fund.
deleted text begin
The proceeds of the tax shall be distributed on July 15 each year.
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. 30.
Minnesota Statutes 2018, section 298.018, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Distribution date. new text end
new text begin
The proceeds of the tax allocated under subdivision 1 shall
be distributed on December 15 each year. Any payment of proceeds received after December
15 shall be distributed on the next net proceeds tax distribution date.
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. 31.
Minnesota Statutes 2018, section 298.282, subdivision 1, is amended to read:
Subdivision 1.
Distribution of taconite municipal aid account.
new text begin (a) new text end The amount
deposited with the county as provided in section 298.28, subdivision 3, must be distributed
as provided by this section among: (1) the municipalities comprising a taconite assistance
area under section 273.1341; (2) a township that contains a state park consisting primarily
of an underground iron ore mine; and (3) a city located within five miles of that state park,
each being referred to in this section as a qualifying municipality.
new text begin
(b) The amount deposited in the state general fund as provided in section 298.018,
subdivision 1, must be distributed in the same manner as provided under paragraph (a)
except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the
dates provided under section 298.018, subdivision 1a.
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. 32.
Laws 2017, First Special Session chapter 1, article 8, section 3, the effective date,
is amended to read:
EFFECTIVE DATE.
This section is effective for new text begin (1) new text end petitions and appeals filed after
June 30, 2017new text begin , for which notices of entry of order are mailed before July 1, 2019, and (2)
notices of entry of order mailed after June 30, 2019new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
APPENDIX
Repealed Minnesota Statutes: S0005-1
37.31 ISSUANCE OF BONDS.
Subd. 8.
Expiration.
The authority to issue bonds, other than bonds to refund outstanding bonds, under this section expires July 1, 2025.
69.011 QUALIFYING FOR STATE AID.
Subdivision 1.
Definitions.
Unless the language or context clearly indicates that a different meaning is intended, the following words and terms, for the purposes of this chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
(a) "Commissioner" means the commissioner of revenue.
(b) "Municipality" means:
(1) a home rule charter or statutory city;
(2) an organized town;
(3) a park district subject to chapter 398;
(4) the University of Minnesota;
(5) for purposes of the fire state aid program only, an American Indian tribal government entity located within a federally recognized American Indian reservation;
(6) for purposes of the police state aid program only, an American Indian tribal government with a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93;
(7) for purposes of the police state aid program only, the Metropolitan Airports Commission; and
(8) for purposes of the police state aid program only, the Department of Natural Resources and the Department of Public Safety with respect to peace officers covered under chapter 352B.
(c) "Minnesota Firetown Premium Report" means a form prescribed by the commissioner containing space for reporting by insurers of fire, lightning, sprinkler leakage and extended coverage premiums received upon risks located or to be performed in this state less return premiums and dividends.
(d) "Firetown" means the area serviced by any municipality having a qualified fire department or a qualified incorporated fire department having a subsidiary volunteer firefighters' relief association.
(e) "Estimated market value" means latest available estimated market value of all property in a taxing jurisdiction, whether the property is subject to taxation, or exempt from ad valorem taxation obtained from information which appears on abstracts filed with the commissioner of revenue or equalized by the State Board of Equalization.
(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the commissioner for reporting by each fire and casualty insurer of all premiums received upon direct business received by it in this state, or by its agents for it, in cash or otherwise, during the preceding calendar year, with reference to insurance written for insuring against the perils contained in auto insurance coverages as reported in the Minnesota business schedule of the annual financial statement which each insurer is required to file with the commissioner in accordance with the governing laws or rules less return premiums and dividends.
(g) "Peace officer" means any person:
(1) whose primary source of income derived from wages is from direct employment by a municipality or county as a law enforcement officer on a full-time basis of not less than 30 hours per week;
(2) who has been employed for a minimum of six months prior to December 31 preceding the date of the current year's certification under subdivision 2, paragraph (b);
(3) who is sworn to enforce the general criminal laws of the state and local ordinances;
(4) who is licensed by the Peace Officers Standards and Training Board and is authorized to arrest with a warrant; and
(5) who is a member of the State Patrol retirement plan or the public employees police and fire fund.
(h) "Full-time equivalent number of peace officers providing contract service" means the integral or fractional number of peace officers which would be necessary to provide the contract service if all peace officers providing service were employed on a full-time basis as defined by the employing unit and the municipality receiving the contract service.
(i) "Retirement benefits other than a service pension" means any disbursement authorized under section 424A.05, subdivision 3, clauses (3) and (4).
(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
(1) for the police state aid program:
(i) the person who was elected or appointed to the specified position or, in the absence of the person, another person who is designated by the applicable governing body;
(ii) in a park district, the secretary of the board of park district commissioners;
(iii) in the case of the University of Minnesota, the official designated by the Board of Regents;
(iv) for the Metropolitan Airports Commission, the person designated by the commission;
(v) for the Department of Natural Resources or the Department of Public Safety, the respective commissioner;
(vi) for a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the person designated by the applicable American Indian tribal government; and
(2) for the fire state aid program and fire relief association financial reports, the person who was elected or appointed to the specified position, or, for governmental entities other than counties, if the governing body of the governmental entity designates the position to perform the function, the chief financial official of the governmental entity or the chief administrative official of the governmental entity.
(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the retirement plan established by chapter 353G.
Subd. 2.
Qualification for fire or police state aid.
(a) Unless retirement coverage is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in order to qualify to receive fire state aid, on or before March 15 annually, in conjunction with the financial report required pursuant to section 69.051, the clerk of each municipality having a duly organized fire department as provided in subdivision 4, or the secretary of each independent nonprofit firefighting corporation having a subsidiary incorporated firefighters' relief association, whichever is applicable, and the fire chief, shall jointly certify the existence of the municipal fire department or of the independent nonprofit firefighting corporation, whichever is applicable, which meets the minimum qualification requirements set forth in this subdivision, and the fire personnel and equipment of the municipal fire department or the independent nonprofit firefighting corporation as of the preceding December 31.
(b) Where retirement coverage is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in order to qualify to receive fire state aid, on or before March 15, annually, the executive director of the Public Employees Retirement Association shall certify the existence of that coverage for each municipality and the municipal clerk or independent nonprofit firefighting corporation secretary, whichever applies, and the applicable fire chief shall certify the fire personnel and fire department equipment as of the preceding December 31.
(c) Except as provided in subdivision 2b, on or before March 15 annually, in order to qualify to receive police state aid, the clerk of each municipality and the auditor of each county employing one or more peace officers as defined in subdivision 1, paragraph (g), shall certify the number of such peace officers to the commissioner on forms prescribed by the commissioner. Credit for officers employed less than a full year must be apportioned. Each full month of employment of a qualifying officer during the calendar year entitles the employing municipality or county to credit for 1/12 of the payment for employment of a peace officer for the entire year. For purposes of sections 69.011 to 69.051, employment of a peace officer commences when the peace officer is entered on the payroll of the respective municipal police department or county sheriff's department. No peace officer may be included in the certification of the number of peace officers by more than one employing unit for the same month.
(d) A certification made under this subdivision must be filed with the commissioner, must be made on a form prescribed by the commissioner, and must include any other facts that the commissioner requires.
Subd. 2b.
Departments of Natural Resources and Public Safety.
(a) On or before each March 15, the commissioner of natural resources shall certify the number of peace officers as defined in subdivision 1, clause (g), employed by the Enforcement Division and the commissioner of public safety shall certify the number of peace officers as defined in subdivision 1, clause (g), employed by the Bureau of Criminal Apprehension, the Gambling Enforcement Division, and the State Patrol Division.
(b) The certification must be on a form prescribed by the commissioner. Peace officers certified under this paragraph must be included in the total certifications under subdivision 2.
Subd. 2c.
Ineligibility of certain police officers.
A police officer employed by the University of Minnesota who is required by the Board of Regents to be a member of the University of Minnesota faculty retirement plan is not eligible to be included in any police state-aid certification under this section.
Subd. 3.
Failure to file certificate deemed waiver.
(a) If a certification required by this section is not filed with the commissioner by the due date prescribed by this section, the commissioner shall notify the county, the municipality, or the nonprofit firefighting corporation that a portion or all of its current year aid will be forfeited if the certification is not received within ten days.
(b) The amount of aid forfeited is equal to the amount of state police aid or state fire aid determined for the county, the municipality, or the nonprofit firefighting corporation for the current year, multiplied by five percent for each week or fraction of a week that this certification is late. The penalty must be computed beginning ten days after the postmark date of the commissioner's notification as required under this subdivision. All forfeited aid amounts revert to the general fund in the state treasury. Failure to receive the certificate form may not be used as a defense for a failure to file.
Subd. 4.
Qualification for fire state aid.
(a) A municipality in this state qualifies to receive fire state aid if it meets the general requirements of paragraph (b) and if it meets the specific requirements of paragraph (c).
(b) Minimum qualifications for fire state aid include the following:
(1) having for more than one year an organized fire department and officially established by the governing body of the municipality or an independent nonprofit firefighting corporation created under the nonprofit corporation act of this state and operating exclusively for firefighting purposes and providing retirement and relief benefits to its members; and
(2) having a separate subsidiary incorporated firefighter's relief association providing retirement and relief benefits, or participating in the voluntary statewide lump-sum volunteer firefighter retirement plan or, if a paid fire department, having retirement coverage by the public employees police and fire retirement plan.
(c) Minimum requirements for fire state aid also include the following or their equivalent as determined by the state fire marshal:
(1) having ten paid or volunteer firefighters including a fire chief and assistant fire chief;
(2) having regular scheduled meetings and frequent drills including instructions in firefighting tactics and in the use, care, and operation of all fire apparatus and equipment;
(3) having a motorized fire truck equipped with a motorized pump, 250 gallon or larger water tank, 300 feet of one inch or larger fire hose in two lines with combination spray and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent, dry chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars, axes, lanterns, fire coats, helmets, and boots;
(4) having apparatus suitably housed in a building of good construction with facilities for care of hose and equipment;
(5) having a reliable and adequate method of receiving fire alarms by telephone or with electric siren and suitable means of sounding an alarm;
(6) if response is to be provided outside the corporate limits of the municipality wherein the fire department is located, having another piece of motorized apparatus to make the response; and
(7) meeting other requirements that the commissioner establishes by rule.
69.021 REPORTING PREMIUMS; CALCULATION OF AID.
Subdivision 1.
Minnesota Firetown Premium Report and Minnesota Aid to Police Premium Report.
The commissioner shall, at the time of mailing tax forms, send blank copies of the Minnesota Firetown Premium Report and when applicable the Minnesota Aid to Police Premium Report to each insurer, including township and farmers mutual insurance companies licensed to write insurance as described in section 69.011, subdivision 1, clauses (c) and (f) in this state. These reports must contain space for the insurers name, address, gross premiums less return premiums, dividends, net premiums, certification and other facts that the commissioner may require.
Subd. 2.
Report of premiums.
(a) Each insurer, including township and farmers mutual insurers where applicable, shall return to the commissioner the reports described in subdivision 1 certified by its secretary and president or chief financial officer.
(b) The Minnesota Firetown Premium Report must contain a true and accurate statement of the total premium for all gross direct fire, lightning, sprinkler leakage, and extended coverage insurance of all domestic mutual insurers and the total premiums for all gross direct fire, lightning, sprinkler leakage and extended coverage insurance of all other insurers, less return premiums and dividends received by them on that business written or done during the preceding calendar year upon property located within the state or brought into the state for temporary use. The fire and extended coverage portion of multiperil and multiple peril package premiums and all other combination premiums must be determined by applying percentages determined by the commissioner or by rating bureaus recognized by the commissioner.
(c) The Minnesota Aid to Police Premium Report must contain a true and accurate statement of the total premiums, less return premiums and dividends, on all direct business received by such insurer in this state, or by its agents for it, in cash or otherwise, during the preceding calendar year, with reference to insurance written for perils described in section 69.011, subdivision 1, clause (f).
Subd. 3.
Penalty for fraudulent, incorrect, incomplete returns and late filing of report.
(a) When it appears to the commissioner that any insurer has made an incomplete or inaccurate report, the commissioner shall return the report and demand that a complete and accurate report be filed. If the insurer fails to file a report on or before March 1, annually, the insurer is liable and shall pay $25 for each seven days, or fraction thereof, that the report is delinquent, but not to exceed $200. If the insurer fails to file a corrected report within 30 days after demand, the insurer is liable for the penalties provided in paragraph (b) or (c) for knowingly filing an inaccurate or false report.
(b) Any insurer which knowingly makes and files an inaccurate or false report is liable to a fine in an amount of not less than $25 nor more than $1,000, as determined by the commissioner, and additionally the commissioner of commerce may revoke the insurer's certificate of authority.
(c) Any person whose duty it is to make the report who fails or refuses to make it within 30 days after notification by the commissioner shall be fined an amount of not more than $1,000.
(d) Failure of the insurer to receive a reporting form does not excuse the insurer from filing the report.
Subd. 4.
Determination of qualified state aid recipients; certification to commissioner of management and budget.
(a) The commissioner shall determine which municipalities and independent nonprofit firefighting corporations are qualified to receive fire state aid directly or are qualified to receive the benefit of fire state aid paid to the voluntary statewide lump-sum volunteer firefighter retirement plan and which municipalities and counties are qualified to receive police state aid.
(b) The commissioner shall determine qualification for state aid upon receipt of:
(1) the fire department personnel and equipment certification or the police department and qualified peace officers certificate, whichever applies, required under section 69.011;
(2) the financial compliance report required under section 6.495, subdivision 3, if applicable; and
(3) any other relevant information which comes to the attention of the commissioner.
(c) Upon completion of the determination, on or before October 1, the commissioner shall calculate the amount of:
(1) the police state aid which each county or municipality is to receive under subdivisions 5, 6, 7a, and 10; and
(2) the fire state aid which each municipality or nonprofit firefighting corporation is to receive under subdivisions 5 and 7.
(d) The commissioner shall certify to the commissioner of management and budget the name of each county or municipality, and the amount of state aid which each county or municipality is to receive, in the case of police state aid. The commissioner shall certify to the commissioner of management and budget the name of each municipality or independent nonprofit firefighting corporation and the amount of state aid which each municipality or independent nonprofit firefighting corporation is to receive directly or the amount of state aid which the voluntary statewide lump-sum volunteer firefighter retirement plan is qualified to receive on behalf of the municipality or corporation, in the case of fire state aid.
Subd. 5.
Calculation of state aid.
(a) The amount of fire state aid available for apportionment, before the addition of the minimum fire state aid allocation amount under subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the commissioner by insurers on the Minnesota Firetown Premium Report. This amount must be reduced by the amount required to pay the state auditor's costs and expenses of the audits or exams of the firefighters relief associations.
The total amount for apportionment in respect to fire state aid must not be less than two percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown Premium Report after subtracting the following amounts:
(1) the amount required to pay the state auditor's costs and expenses of the audits or exams of the firefighters relief associations; and
(2) one percent of the premiums reported by township mutual insurance companies and mutual property and casualty companies with total assets of $5,000,000 or less.
(b) The total amount for apportionment as police state aid is equal to 104 percent of the amount of premium taxes paid to the state on the premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report. The total amount for apportionment in respect to the police state aid program must not be less than two percent of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report.
(c) The commissioner shall calculate the percentage of increase or decrease reflected in the apportionment over or under the previous year's available state aid using the same premiums as a basis for comparison.
(d) In addition to the amount for apportionment of police state aid under paragraph (b), each year $100,000 must be apportioned for police state aid. An amount sufficient to pay this increase is annually appropriated from the general fund.
Subd. 7.
Apportionment of fire state aid to municipalities and relief associations.
(a) The commissioner shall apportion the fire state aid relative to the premiums reported on the Minnesota Firetown Premium Reports filed under this chapter to each municipality and/or firefighters relief association qualified under section 69.011, subdivision 4.
(b) The commissioner shall calculate an initial fire state aid allocation amount for each municipality or fire department under paragraph (c) and, if applicable, a minimum fire state aid allocation amount for each municipality or fire department under paragraph (d). The municipality or fire department must be apportioned the larger fire state aid amount.
(c) The initial fire state aid allocation amount is the amount available for apportionment as fire state aid under subdivision 5, without the inclusion of any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, allocated one-half in proportion to the population as shown in the last official statewide federal census for each fire town and one-half in proportion to the estimated market value of each fire town, including (1) the estimated market value of tax-exempt property and (2) the estimated market value of natural resources lands receiving in lieu payments under sections 477A.11 to 477A.14, but excluding the estimated market value of minerals. In the case of incorporated or municipal fire departments furnishing fire protection to other cities, towns, or townships as evidenced by valid fire service contracts filed with the commissioner, the distribution must be adjusted proportionately to take into consideration the crossover fire protection service. Necessary adjustments must be made to subsequent apportionments. In the case of municipalities or independent fire departments qualifying for the aid, the commissioner shall calculate the state aid for the municipality or relief association on the basis of the population and the estimated market value of the area furnished fire protection service by the fire department as evidenced by duly executed and valid fire service agreements filed with the commissioner. If one or more fire departments are furnishing contracted fire service to a city, town, or township, only the population and estimated market value of the area served by each fire department may be considered in calculating the state aid and the fire departments furnishing service shall enter into an agreement apportioning among themselves the percent of the population and the percent of the estimated market value of each shared service area. The agreement must be in writing and must be filed with the commissioner.
(d) The minimum fire state aid allocation amount is the amount in addition to the initial fire state allocation amount that is derived from any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, and allocated to municipalities with volunteer firefighters relief associations or covered by the voluntary statewide lump-sum volunteer firefighter retirement plan based on the number of active volunteer firefighters who are members of the relief association as reported in the annual financial reporting for the calendar year 1993 to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or fire departments with volunteer firefighters relief associations receive in total at least a minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 30 firefighters. If a relief association is established after calendar year 1993 and before calendar year 2000, the number of active volunteer firefighters who are members of the relief association as reported in the annual financial reporting for calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, shall be used in this determination. If a relief association is established after calendar year 1999, the number of active volunteer firefighters who are members of the relief association as reported in the first annual financial reporting submitted to the Office of the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this determination. If a relief association is terminated as a result of providing retirement coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, the number of active volunteer firefighters of the municipality covered by the statewide plan as certified by the executive director of the Public Employees Retirement Association to the commissioner and the state auditor, but not to exceed 30 active firefighters, must be used in this determination.
(e) Unless the firefighters of the applicable fire department are members of the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must be paid to the treasurer of the municipality where the fire department is located and the treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit the aid to the relief association if the relief association has filed a financial report with the treasurer of the municipality and has met all other statutory provisions pertaining to the aid apportionment. If the firefighters of the applicable fire department are members of the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must be paid to the executive director of the Public Employees Retirement Association and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
(f) The commissioner may make rules to permit the administration of the provisions of this section.
(g) Any adjustments needed to correct prior misallocations must be made to subsequent fire state aid apportionments.
Subd. 7a.
Apportionment of police state aid.
(a) Subject to the reduction provided for under subdivision 10, the commissioner shall apportion the police state aid to each municipality, to each county, and to the Departments of Natural Resources and Public Safety in the following manner:
(1) for all municipalities maintaining police departments, counties, the Department of Natural Resources, and the Department of Public Safety, the police state aid must be distributed in proportion to the relationship that the total number of peace officers, as determined under section 69.011, subdivision 1, paragraph (g), and subdivision 2, paragraph (b), employed by that employing unit for 12 calendar months and the proportional or fractional number who were employed less than 12 months bears to the total number of peace officers employed by all municipalities, counties, the Departments of Natural Resources and Public Safety, subject to any reduction under subdivision 10;
(2) for each municipality which contracts with the county for police service, a proportionate amount of the state aid distributed to the county based on the full-time equivalent number of peace officers providing contract service to that municipality must be credited against the municipality's contract obligation; and
(3) for each municipality which contracts with another municipality for police service, a proportionate amount of the state aid distributed to the municipality providing contract service based on the full-time equivalent number of peace officers providing contract service to that municipality on a full-time equivalent basis must be credited against the contract obligation of the municipality receiving contract service.
(b) Any necessary additional adjustments must be made to subsequent police state aid apportionments.
Subd. 8.
Population and estimated market value.
(a) In computations relating to fire state aid requiring the use of population figures, only official statewide federal census figures may be used. Increases or decreases in population disclosed by reason of any special census must not be taken into consideration.
(b) In calculations relating to fire state aid requiring the use of estimated market value property figures, only the latest available estimated market value property figures may be used.
Subd. 9.
Appeal.
(a) In the event that a municipality, a county, a fire relief association, the Department of Natural Resources, the Department of Public Safety, or the voluntary statewide lump-sum volunteer firefighter retirement plan, feels itself to be aggrieved, it may request the commissioner to review and adjust the apportionment of funds within the county in the case of police state aid, or within the state in the case of fire state aid.
(b) The decision of the commissioner is subject to appeal, review, and adjustment by the district court in the county in which the applicable municipality or fire department is located or by the Ramsey County District Court with respect to the Department of Natural Resources, the Department of Public Safety, or the voluntary statewide lump-sum volunteer firefighter retirement plan.
Subd. 10.
Reduction in police state aid apportionment.
(a) The commissioner of revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph (b), 6, and 7a, for eligible employer units by the amount of any excess police state aid.
(b) "Excess police state aid" is:
(1) for counties and for municipalities in which police retirement coverage is provided wholly by the public employees police and fire fund and all police officers are members of the plan governed by sections 353.63 to 353.657, the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the Public Employees Retirement Association;
(2) for the Metropolitan Airports Commission, the amount in excess of the commission's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the Public Employees Retirement Association; and
(3) for the Department of Natural Resources and for the Department of Public Safety, the amount in excess of the employer's total prior calendar year obligation under section 352B.02, subdivision 1c, for plan members who are peace officers under section 69.011, subdivision 1, paragraph (g), as certified by the executive director of the Minnesota State Retirement System.
(c) The employer's total prior calendar year obligation with respect to the public employees police and fire plan under paragraph (b), clause (1), is the total prior calendar year obligation under section 353.65, subdivision 3, for police officers as defined in section 353.64, subdivisions 1, 1a, and 2, and the actual total prior calendar year obligation under section 353.65, subdivision 3, for firefighters, as defined in section 353.64, subdivisions 1, 1a, and 2, but not to exceed for those firefighters the applicable following employer calendar year amount:
| Municipality | Maximum Amount | ||
| Albert Lea | $54,157.01 | ||
| Anoka | 10,399.31 | ||
| Apple Valley | 5,442.44 | ||
| Austin | 49,864.73 | ||
| Bemidji | 27,671.38 | ||
| Brooklyn Center | 6,605.92 | ||
| Brooklyn Park | 24,002.26 | ||
| Burnsville | 15,956.00 | ||
| Cloquet | 4,260.49 | ||
| Coon Rapids | 39,920.00 | ||
| Cottage Grove | 8,588.48 | ||
| Crystal | 5,855.00 | ||
| East Grand Forks | 51,009.88 | ||
| Edina | 32,251.00 | ||
| Elk River | 5,216.55 | ||
| Ely | 13,584.16 | ||
| Eveleth | 16,288.27 | ||
| Fergus Falls | 6,742.00 | ||
| Fridley | 33,420.64 | ||
| Golden Valley | 11,744.61 | ||
| Hastings | 16,561.00 | ||
| Hopkins | 4,324.23 | ||
| International Falls | 14,400.69 | ||
| Lakeville | 782.35 | ||
| Lino Lakes | 5,324.00 | ||
| Little Falls | 7,889.41 | ||
| Maple Grove | 6,707.54 | ||
| Maplewood | 8,476.69 | ||
| Minnetonka | 10,403.00 | ||
| Montevideo | 1,307.66 | ||
| Moorhead | 68,069.26 | ||
| New Hope | 6,739.72 | ||
| North St. Paul | 4,241.14 | ||
| Northfield | 770.63 | ||
| Owatonna | 37,292.67 | ||
| Plymouth | 6,754.71 | ||
| Red Wing | 3,504.01 | ||
| Richfield | 53,757.96 | ||
| Rosemount | 1,712.55 | ||
| Roseville | 9,854.51 | ||
| St. Anthony | 33,055.00 | ||
| St. Louis Park | 53,643.11 | ||
| Thief River Falls | 28,365.04 | ||
| Virginia | 31,164.46 | ||
| Waseca | 11,135.17 | ||
| West St. Paul | 15,707.20 | ||
| White Bear Lake | 6,521.04 | ||
| Woodbury | 3,613.00 | ||
| any other municipality | 0.00 |
(d) The total amount of excess police state aid must be deposited in the excess police state-aid account in the general fund, administered and distributed as provided in subdivision 11.
Subd. 11.
Excess police state-aid holding account.
(a) The excess police state-aid holding account is established in the general fund. The excess police state-aid holding account must be administered by the commissioner.
(b) Excess police state aid determined according to subdivision 10, must be deposited annually in the excess police state-aid holding account.
(c) From the balance in the excess police state-aid holding account, $900,000 must be canceled annually to the general fund.
(d) On October 1 of each year, one-half of the balance of the excess police state-aid holding account remaining after the deduction under paragraph (c) is appropriated for additional amortization aid under section 423A.02, subdivision 1b.
(e) Annually, the remaining balance in the excess police state-aid holding account, after the deductions under paragraphs (c) and (d) cancels to the general fund.
69.022 VOLUNTEER RETENTION STIPEND AID PILOT.
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have the meanings given them.
(b) "Commissioner," unless otherwise specified, means the commissioner of public safety.
(c) "Emergency medical services provider" means a licensee as defined under section 144E.001, subdivision 8.
(d) "Independent nonprofit firefighting corporation" has the same meaning as used in chapter 424A.
(e) "Municipality" has the meaning given in section 69.011, but only if the municipality uses one or more qualified volunteers to provide service.
(f) "Qualified entity" means an emergency medical services provider, independent nonprofit firefighting corporation, or municipality.
(g) "Qualified volunteer" means one of the following types of volunteers who has provided service, for the entire prior calendar year, to one or more qualified entities:
(1) a volunteer firefighter as defined in section 299N.03, subdivision 7;
(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; or
(3) an emergency medical responder as defined in section 144E.001, subdivision 6, who provides emergency medical services as a volunteer.
(h) "Pilot area" means the following groups of counties:
(1) southern Minnesota, consisting of the counties of Faribault, Fillmore, Freeborn, Houston, and Watonwan;
(2) west central Minnesota, consisting of the counties of Chippewa, Kandiyohi, Redwood, and Renville;
(3) central Minnesota, consisting of the counties of Morrison and Todd; and
(4) north central Minnesota, consisting of the counties of Beltrami, Clearwater, and Mahnomen.
Subd. 2.
Certification.
By June 1 of the calendar year following the year in which the qualified volunteer provided service, the commissioner shall certify to the commissioner of revenue each qualified volunteer's name and the qualified entity for which the qualified volunteer provided service, but the commissioner must remove duplicate listings of qualified volunteers who provided service to more than one qualified entity so that each qualified volunteer is listed only once. The commissioner shall also certify to the commissioner of revenue the total amount of aid to be paid to each qualified entity under subdivision 3. For qualified entities that are not municipalities, the commissioner must indicate the municipality to which the aid is to be paid, as designated by the qualified entity.
Subd. 3.
Aid payment and calculation.
The commissioner of revenue shall pay aid to qualified entities located in the pilot area to provide funds for the qualified entities to pay annual volunteer retention stipends to qualified volunteers who provide services to the qualified entities. A qualified entity is located in the pilot area if it is a municipality located in whole or in part in the pilot area, or if it is an emergency medical services provider or independent nonprofit firefighting corporation with its main office located in the pilot area. The amount of the aid equals $500 multiplied by the number of qualified volunteers. For purposes of calculating this aid, each individual providing volunteer service, regardless of the different types of service provided, is one qualified volunteer. The commissioner of revenue shall pay the aid to qualified entities by July 15 of the calendar year following the year in which the qualified volunteer provided service. If a qualified entity is not a municipality, the commissioner shall pay the aid to the treasurer of the municipality designated by the qualified entity. The treasurer of the municipality shall, within 30 days of receipt of the aid, transmit the aid to the qualified entity.
Subd. 4.
Application.
Each year each qualified entity in the pilot area may apply to the commissioner for aid under this section. The application must be made at the time and in the form prescribed by the commissioner and must provide sufficient information to permit the commissioner to determine the applicant's entitlement to aid under this section.
Subd. 5.
Payment of stipends.
A qualified entity receiving state aid under this section must pay the aid as retention stipends of $500 to qualified volunteers no later than September 15 of the year in which the aid was received.
Subd. 6.
Report.
No later than January 15, 2018, the commissioner must report to the chairs and ranking minority members of the legislative committees having jurisdiction over public safety and taxes in the senate and the house of representatives, in compliance with sections 3.195 and 3.197, on aid paid under this section. The report must include:
(1) for each county in the pilot area, a listing of the qualified entities that received aid in each of the three years of the pilot;
(2) the amount of aid paid to each qualified entity that received aid in each of the three years of the pilot; and
(3) for each qualified entity that received aid, the number of qualified volunteers who were paid stipends in each of the three years of the pilot, and the number of qualified volunteers in the year preceding the pilot.
The report must also provide information on the number of qualified volunteers providing service to qualified entities in comparison counties in each of the three years of the pilot and in the year preceding the pilot, and must summarize changes in the number of qualified volunteers during the year preceding the pilot and during the three years of the pilot both within the pilot area and in the comparison counties. For purposes of this subdivision, "comparison counties" means counties designated by the commissioner to include at least half of the counties that border each group of counties in the pilot area, as specified in subdivision 1. Qualified entities in comparison counties must provide information to the commissioner necessary to the report in this subdivision in the form and manner required by the commissioner.
Subd. 7.
Appropriation.
An amount sufficient to pay the state aid under this section is appropriated from the general fund to the commissioner of revenue.
Subd. 8.
Sunset.
This section expires for aid payable after calendar year 2017, except that the reporting requirement in subdivision 6 remains in effect through 2018.
69.031 COMMISSIONER OF MANAGEMENT AND BUDGET; WARRANT, APPROPRIATION, PAYMENT AND ADMINISTRATION.
Subdivision 1.
Commissioner's warrant.
(a) The commissioner of management and budget shall issue to the Public Employees Retirement Association on behalf of a municipality or independent nonprofit firefighting corporation that is a member of the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, to the Department of Natural Resources, the Department of Public Safety, or the county, municipality, or independent nonprofit firefighting corporation certified to the commissioner of management and budget by the commissioner a warrant for an amount equal to the amount of fire state aid or police state aid, whichever applies, certified for the applicable state aid recipient by the commissioner under section 69.021.
(b) Fire state aid and police state aid is payable on October 1 annually. The amount of state aid due and not paid by October 1 accrues interest payable to the state aid recipient at the rate of one percent for each month or part of a month that the amount remains unpaid after October 1.
Subd. 3.
Appropriations.
There is hereby appropriated annually from the state general fund to the commissioner of revenue amounts sufficient to make the police state aid payments and the fire state aid payments specified in this section and section 69.021.
Subd. 5.
Deposit of state aid.
(a) If the municipality or the independent nonprofit firefighting corporation is covered by the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, the executive director shall credit the fire state aid against future municipal contribution requirements under section 353G.08 and shall notify the municipality or independent nonprofit firefighting corporation of the fire state aid so credited at least annually. If the municipality or the independent nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt, transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief association if there is one organized and the association has filed a financial report with the municipality. If the relief association has not filed a financial report with the municipality, the municipal treasurer shall delay transmission of the fire state aid to the relief association until the complete financial report is filed. If the municipality or independent nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan, if there is no relief association organized, or if the association has dissolved or has been removed as trustees of state aid, then the treasurer of the municipality shall deposit the money in the municipal treasury and the money may be disbursed only for the purposes and in the manner set forth in section 424A.08 or for the payment of the employer contribution requirement with respect to firefighters covered by the public employees police and fire retirement plan under section 353.65, subdivision 3.
(b) For a municipality in which police retirement coverage is provided by the public employees police and fire fund and all peace officers are members of the fund, including municipalities covered by section 353.665, the total state aid must be applied toward the municipality's employer contribution to the public employees police and fire fund under sections 353.65, subdivision 3, and 353.665, subdivision 8.
(c) The county treasurer, upon receipt of the police state aid for the county, shall apply the total state aid toward the county's employer contribution to the public employees police and fire fund under section 353.65, subdivision 3.
(d) The designated Metropolitan Airports Commission official, upon receipt of the police state aid for the Metropolitan Airports Commission, shall apply the total police state aid toward the commission's employer contribution for police officers to the public employees police and fire plan under section 353.65, subdivision 3.
(e) The police state aid apportioned to the Departments of Public Safety and Natural Resources under section 69.021, subdivision 7a, is appropriated to the commissioner of management and budget for transfer to the funds and accounts from which the salaries of peace officers certified under section 69.011, subdivision 2b, are paid. The commissioner of revenue shall certify to the commissioners of public safety, natural resources, and management and budget the amounts to be transferred from the appropriation for police state aid. The commissioners of public safety and natural resources shall certify to the commissioner of management and budget the amounts to be credited to each of the funds and accounts from which the peace officers employed by their respective departments are paid. Each commissioner shall allocate the police state aid first for employer contributions for employees funded from the general fund and then for employer contributions for employees funded from other funds. For peace officers whose salaries are paid from the general fund, the amounts transferred from the appropriation for police state aid must be canceled to the general fund.
69.041 SHORTFALL FROM GENERAL FUND.
(a) If the annual funding requirements of fire or police relief associations or consolidation accounts under sections 424A.091 to 424A.095, or Laws 2013, chapter 111, article 5, sections 31 to 42, exceed all applicable revenue sources of a given year, including the insurance premium taxes funding the applicable fire or police state aid as set under section 297I.05, subdivisions 2, 3, and 4, the shortfall in the annual funding requirements must be paid from the general fund to the extent appropriated by the legislature.
(b) Nothing in this section may be deemed to relieve any municipality from its obligation to a relief association or consolidation account under law.
69.051 FINANCIAL REPORT, BOND, EXAMINATION.
Subdivision 1.
Financial report and audit.
(a) The board of the Bloomington Fire Department Relief Association and each volunteer firefighters relief association as defined in section 424A.001, subdivision 4, with assets of at least $500,000 or liabilities of at least $500,000 in the prior year or in any previous year, according to the applicable actuarial valuation or according to the financial report if no valuation is required, shall prepare a financial report covering the special and general funds of the relief association for the preceding fiscal year, file the financial report, and submit financial statements.
(b) The financial report must contain financial statements and disclosures which present the true financial condition of the relief association and the results of relief association operations in conformity with generally accepted accounting principles and in compliance with the regulatory, financing and funding provisions of this chapter and any other applicable laws. The financial report must be countersigned by:
(1) the municipal clerk or clerk-treasurer of the municipality in which the relief association is located if the relief association is a firefighters relief association which is directly associated with a municipal fire department; or
(2) by the municipal clerk or clerk-treasurer of the largest municipality in population which contracts with the independent nonprofit firefighting corporation if the volunteer firefighter relief association is a subsidiary of an independent nonprofit firefighting corporation and by the secretary of the independent nonprofit firefighting corporation; or
(3) by the chief financial official of the county in which the volunteer firefighter relief association is located or primarily located if the relief association is associated with a fire department that is not located in or associated with an organized municipality.
(c) The financial report must be retained in its office for public inspection and must be filed with the governing body of the government subdivision in which the associated fire department is located after the close of the fiscal year. One copy of the financial report must be furnished to the state auditor after the close of the fiscal year.
(d) Audited financial statements must be attested to by a certified public accountant or by the state auditor and must be filed with the state auditor within 180 days after the close of the fiscal year. The state auditor may accept this report in lieu of the report required in paragraph (c).
Subd. 1a.
Financial statement.
(a) The board of each volunteer firefighter relief association, as defined in section 424A.001, subdivision 4, that is not required to file a financial report and audit under subdivision 1 must prepare a detailed statement of the financial affairs for the preceding fiscal year of the relief association's special and general funds in the style and form prescribed by the state auditor. The detailed statement must show:
(1) the sources and amounts of all money received;
(2) all disbursements, accounts payable and accounts receivable;
(3) the amount of money remaining in the treasury;
(4) total assets, including a listing of all investments;
(5) the accrued liabilities; and
(6) all other items necessary to show accurately the revenues and expenditures and financial position of the relief association.
(b) The detailed financial statement of the special and general funds required under paragraph (a) must be certified by a certified public accountant or by the state auditor in accordance with agreed-upon procedures and forms prescribed by the state auditor. The accountant must have at least five years of public accounting, auditing, or similar experience, and must not be an active, inactive, or retired member of the relief association or the fire department.
(c) The detailed financial statement required under paragraph (a) must be countersigned by:
(1) the municipal clerk or clerk-treasurer of the municipality; or
(2) where applicable, by the municipal clerk or clerk-treasurer of the largest municipality in population which contracts with the independent nonprofit firefighting corporation if the relief association is a subsidiary of an independent nonprofit firefighting corporation and by the secretary of the independent nonprofit firefighting corporation; or
(3) by the chief financial official of the county in which the volunteer firefighter relief association is located or primarily located if the relief association is associated with a fire department that is not located in or associated with an organized municipality.
(d) The volunteer firefighters' relief association board must file the detailed financial statement required under paragraph (a) in the relief association office for public inspection and present it to the governing body of the municipality within 45 days after the close of the fiscal year, and must submit a copy of the certified detailed financial statement to the state auditor within 90 days of the close of the fiscal year.
(e) A certified public accountant or auditor who performs the agreed-upon procedures under paragraph (b) is subject to the reporting requirements of section 6.67.
Subd. 1b.
Qualification.
The state auditor may, upon a demonstration by a relief association of hardship or an inability to conform, extend the deadline for reports under subdivisions 1 or 1a, but not beyond November 30th following the due date. If the reports are not received by November 30th, the municipality or relief association forfeits its current year state aid, and, until the state auditor receives the required information, the relief association or municipality is ineligible to receive any future state aid. A municipality or firefighters' relief association does not qualify initially to receive, or be entitled subsequently to retain, state aid under this chapter if the financial reporting requirement or the applicable requirements of this chapter or any other statute or special law have not been complied with or are not fulfilled.
Subd. 2.
Treasurers bond.
(a) The treasurer of the Bloomington Fire Department Relief Association may not enter upon duties without having given the association a bond in a reasonable amount acceptable to the municipality for the faithful discharge of duties according to law.
(b) No treasurer of a relief association governed by sections 424A.091 to 424A.096 may enter upon the duties of the office until the treasurer has given the association a good and sufficient bond in an amount equal to at least ten percent of the assets of the relief association; however, the amount of the bond need not exceed $500,000.
Subd. 3.
Report by certain municipalities; exceptions.
(a) The chief administrative officer of each municipality which has an organized fire department but which does not have a firefighters' relief association governed by sections 424A.091 to 424A.095 or Laws 2014, chapter 275, article 2, section 23, and which is not exempted under paragraph (b) or (c) shall annually prepare a detailed financial report of the receipts and disbursements by the municipality for fire protection service during the preceding calendar year on a form prescribed by the state auditor. The financial report must contain any information which the state auditor deems necessary to disclose the sources of receipts and the purpose of disbursements for fire protection service. The financial report must be signed by the municipal clerk or clerk-treasurer of the municipality. The financial report must be filed by the municipal clerk or clerk-treasurer with the state auditor on or before July 1 annually. The municipality does not qualify initially to receive, and is not entitled subsequently to retain, state aid under this chapter if the financial reporting requirement or the applicable requirements of this chapter or any other statute or special law have not been complied with or are not fulfilled.
(b) Each municipality that has an organized fire department and provides retirement coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G qualifies to have fire state aid transmitted to and retained in the statewide lump-sum volunteer firefighter retirement fund without filing a detailed financial report if the executive director of the Public Employees Retirement Association certifies compliance by the municipality with the requirements of sections 353G.04 and 353G.08, paragraph (e), and certifies conformity by the applicable fire chief with the requirements of section 353G.07.
(c) Each municipality qualifies to receive fire state aid under this chapter without filing a financial report under paragraph (a) if the municipality:
(1) has an organized fire department;
(2) does not have a volunteer firefighters relief association directly associated with its fire department;
(3) does not participate in the statewide lump-sum volunteer firefighter retirement plan under chapter 353G;
(4) provides retirement coverage to its firefighters through the public employees police and fire retirement plan under sections 353.63 to 353.68; and
(5) is certified by the executive director of the Public Employees Retirement Association to the state auditor to have had an employer contribution under section 353.65, subdivision 3, for its firefighters for the immediately prior calendar year equal to or greater than its fire state aid for the immediately prior calendar year.
Subd. 4.
Notification by commissioner and state auditor.
(a) The state auditor, in performing an audit or examination, shall notify the Legislative Commission on Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or nonfeasance in office by relief association officials or municipal officials.
(b) The commissioner shall notify the Legislative Commission on Pensions and Retirement if the state auditor has not filed the required financial compliance reports by July 1.
69.33 REPORT; AMOUNT OF PREMIUMS RECEIVED BY INSURANCE COMPANIES.
For purposes of the first class city fire insurance premium tax surcharge aid program under section 297I.10, the commissioner shall enclose in the annual statement blank that is sent to all fire insurance companies doing business in this state a blank form containing the names of all cities of the first class and require these companies, at the time of making their annual statements to the commissioner, to state on these blanks the amount of premiums received by them upon properties insured within the corporate limits of the cities named thereon during the year ending December 31st last past. Thereafter, before July first each year, the commissioner shall certify to the commissioner of management and budget the information thus obtained, together with the amount of the tax for the benefit of the pension plans covering firefighters in cities of the first class paid in such year by these companies upon these insurance premiums.
69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.
(a) Notwithstanding any provision of law to the contrary, the payment of the following necessary, reasonable and direct expenses of maintaining, protecting and administering the special fund, when provided for in the bylaws of the association and approved by the board of trustees, constitutes authorized administrative expenses of a volunteer firefighters' relief association organized under any law of this state or the Bloomington Fire Department Relief Association:
(1) office expense, including, but not limited to, rent, utilities, equipment, supplies, postage, periodical subscriptions, furniture, fixtures, and salaries of administrative personnel;
(2) salaries of the officers of the association, or their designees, and salaries of the members of the board of trustees of the association if the salary amounts are approved by the governing body of the entity that is responsible for meeting any minimum obligation under section 424A.092 or 424A.093, or Laws 2013, chapter 111, article 5, sections 31 to 42, and the itemized expenses of relief association officers and board members that are incurred as a result of fulfilling their responsibilities as administrators of the special fund;
(3) tuition, registration fees, organizational dues, and other authorized expenses of the officers or members of the board of trustees incurred in attending educational conferences, seminars, or classes relating to the administration of the relief association;
(4) audit and audit-related services, accounting and accounting-related services, and actuarial, medical, legal, and investment and performance evaluation expenses;
(5) filing and application fees payable by the relief association to federal or other governmental entities;
(6) reimbursement to the officers and members of the board of trustees, or their designees, for reasonable and necessary expenses actually paid and incurred in the performance of their duties as officers or members of the board; and
(7) premiums on fiduciary liability insurance and official bonds for the officers, members of the board of trustees, and employees of the relief association.
(b) Any other expenses of the relief association must be paid from the general fund of the association, if one exists. If a relief association has only one fund, that fund is the special fund for purposes of this section. If a relief association has a special fund and a general fund, and any expense of the relief association that is directly related to the purposes for which both funds were established, the payment of that expense must be apportioned between the two funds on the basis of the benefits derived by each fund.
270C.131 EXPLORE MINNESOTA TOURISM TAX REPORT.
Within 30 days of the end of each quarter, the Department of Revenue shall provide Explore Minnesota Tourism with a quarterly report of comparisons of quarterly sales taxes collected under the Standard Industrial Classification System, or equivalent codes in the North America Industry Classification System, in the following areas:
(1) SIC 70, lodging;
(2) SIC 79, amusement and recreation; and
(3) SIC 58, eating and drinking.
275.29 ABSTRACTS TO COMMISSIONER OF REVENUE.
Not later than March 31, in each year, the county auditor shall make and transmit to the commissioner of revenue, in such form as may be prescribed by the commissioner of revenue, complete abstracts of the tax lists of the county, showing the number of acres of land assessed; its value, including the structures thereon; the value of town and city lots, including structures; the total value of all taxable personal property in the several assessment districts; the aggregate amount of all taxable property in the county, and the total amount of taxes levied therein for state, county, town, and all other purposes for that year.
289A.38 LIMITATIONS ON TIME FOR ASSESSMENT OF TAX.
Subd. 7.
Federal tax changes.
If the amount of income, items of tax preference, deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any period, as reported to the Internal Revenue Service is changed or corrected by the commissioner of Internal Revenue or other officer of the United States or other competent authority, or where a renegotiation of a contract or subcontract with the United States results in a change in income, items of tax preference, deductions, credits, or withholding tax, or, in the case of estate tax, where there are adjustments to the taxable estate, the taxpayer shall report the change or correction or renegotiation results in writing to the commissioner. The report must be submitted within 180 days after the final determination and must be in the form of either an amended Minnesota estate, withholding tax, corporate franchise tax, or income tax return conceding the accuracy of the federal determination or a letter detailing how the federal determination is incorrect or does not change the Minnesota tax. An amended Minnesota income tax return must be accompanied by an amended property tax refund return, if necessary. A taxpayer filing an amended federal tax return must also file a copy of the amended return with the commissioner of revenue within 180 days after filing the amended return.
Subd. 8.
Failure to report change or correction of federal return.
If a taxpayer fails to make a report as required by subdivision 7, the commissioner may recompute the tax, including a refund, based on information available to the commissioner. The tax may be recomputed within six years after the report should have been filed, notwithstanding any period of limitations to the contrary.
Subd. 9.
Report made of change or correction of federal return.
If a taxpayer is required to make a report under subdivision 7, and does report the change or files a copy of the amended return, the commissioner may recompute and reassess the tax due, including a refund (1) within one year after the report or amended return is filed with the commissioner, notwithstanding any period of limitations to the contrary, or (2) within any other applicable period stated in this section, whichever period is longer. The period provided for the carryback of any amount of loss or credit is also extended as provided in this subdivision, notwithstanding any law to the contrary. If the commissioner has completed a field audit of the taxpayer, and, but for this subdivision, the commissioner's time period to adjust the tax has expired, the additional tax due or refund is limited to only those changes that are required to be made to the return which relate to the changes made on the federal return. This subdivision does not apply to sales and use tax.
For purposes of this subdivision and section 289A.42, subdivision 2, a "field audit" is the physical presence of examiners in the taxpayer's or taxpayer's representative's office conducting an examination of the taxpayer with the intention of issuing an assessment or notice of change in tax or which results in the issuing of an assessment or notice of change in tax. The examination may include inspecting a taxpayer's place of business, tangible personal property, equipment, computer systems and facilities, pertinent books, records, papers, vouchers, computer printouts, accounts, and documents.
290.0131 INDIVIDUALS; ADDITIONS TO FEDERAL TAXABLE INCOME.
Subd. 7.
Fines, fees, and penalties.
The amount of expenses disallowed under section 290.10, subdivision 2, is an addition.
Subd. 10.
Section 179 expensing.
80 percent of the amount by which the deduction allowed under the dollar limits of section 179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal Revenue Code, as amended through December 31, 2003, is an addition.
Subd. 11.
Income attributable to domestic production activities.
The amount of the deduction allowable under section 199 of the Internal Revenue Code is an addition.
290.0133 CORPORATIONS; ADDITIONS TO FEDERAL TAXABLE INCOME.
Subd. 12.
Section 179 expensing.
80 percent of the amount by which the deduction allowed under the dollar limits of section 179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal Revenue Code, as amended through December 31, 2003, is an addition.
Subd. 13.
Income attributable to domestic production activities.
The amount of the deduction allowable under section 199 of the Internal Revenue Code is an addition.
Subd. 14.
Fines, fees, and penalties.
The amount of expenses disallowed under section 290.10, subdivision 2, is an addition.
290.10 NONDEDUCTIBLE ITEMS.
Subd. 2.
Fines, fees, and penalties.
(a) Except as provided in this subdivision, no deduction from taxable income for a trade or business expense under section 162(a) of the Internal Revenue Code shall be allowed for any amount paid or incurred, whether by suit, agreement, or otherwise, to, or at the direction of, a government or entity described in paragraph (d) in relation to the violation of any law or the investigation or inquiry by such government or entity into the potential violation of any law.
(b) Exception for amounts constituting restitution or paid to come into compliance with the law. Paragraph (a) does not apply to any amount which:
(1) the taxpayer establishes:
(i) constitutes restitution, including remediation of property for damage or harm caused by or which may be caused by the violation of any law or the potential violation of any law; or
(ii) is paid to come into compliance with any law which was violated or involved in the investigation or inquiry; and
(2) is identified as restitution or as an amount paid to come into compliance with the law, as the case may be, in the court order or settlement agreement.
This paragraph does not apply to any amount paid or incurred as reimbursement to the government or entity for the costs of any investigation or litigation.
(c) Paragraph (a) does not apply to any amount paid or incurred by order of a court in a suit in which no government or entity described in paragraph (d) is a party.
(d) An entity is described in this paragraph if it is:
(1) a nongovernmental entity which exercises self-regulatory powers, including imposing sanctions, in connection with a qualified board or exchange, as defined in section 1256(g)(7) of the Internal Revenue Code; or
(2) to the extent provided in federal regulations, a nongovernmental entity which exercises self-regulatory powers, including imposing sanctions, as part of performing an essential governmental function.
(e) Paragraph (a) does not apply to any amount paid or incurred as taxes due.
296A.03 DISTRIBUTOR'S LICENSE.
Subd. 5.
Form of application; bond.
(a) A written application shall be made in the form and manner prescribed by the commissioner.
(b) The commissioner shall also require the applicant or licensee to deposit with the commissioner of management and budget securities of the United States government or the state of Minnesota or to execute and file a bond, with a corporate surety approved by the commissioner, to the state of Minnesota in an amount to be determined by the commissioner and in a form to be fixed by the commissioner and approved by the attorney general, and which shall be conditioned for the payment when due of all excise taxes, fees, penalties, and accrued interest arising in the ordinary course of business or by reason of any delinquent money which may be due the state. The bond shall cover all places of business within the state where petroleum products are received by the licensee. The applicant or licensee shall designate and maintain an agent in this state upon whom service may be made for all purposes of this section.
(c) An initial applicant for a distributor's license shall furnish a bond in a minimum sum of $3,000 for the first year.
(d) The commissioner, on reaching the opinion that the bond given by a licensee is inadequate in amount to fully protect the state, shall require an additional bond in such amount as the commissioner deems sufficient.
(e) A licensee who desires to be exempt from depositing securities or furnishing such bond shall furnish to the commissioner an itemized financial statement showing the assets and the liabilities of the applicant. If it appears to the commissioner, from the financial statement or otherwise, that the applicant is financially responsible, then the commissioner may exempt the applicant from depositing such securities or furnishing such bond until the commissioner otherwise orders.
(f) When the surety upon any bond issued under the provisions of this chapter have fulfilled the conditions of such bond and compensated the state for any loss occasioned by any act or omission of any licensee under this chapter, such surety shall be subrogated to all the rights of the state in connection with the transaction where such loss occurred.
296A.04 SPECIAL FUEL DEALER'S LICENSE; REQUIREMENTS.
Subd. 2.
Bond.
The provisions of section 296A.03, subdivision 5, paragraphs (b), (d), (e), and (f), relating to bonds apply to special fuel dealers.
296A.05 BULK PURCHASER'S LICENSE; REQUIREMENTS.
Subd. 2.
Bond.
The provisions of section 296A.03, subdivision 5, paragraphs (b), (d), (e), and (f), relating to bonds apply to bulk purchasers.
297I.25 INFORMATION RETURNS.
Subd. 2.
Firetown and police premium reports.
To the extent required by section 69.021, each insurer shall file with the commissioner a Minnesota firetown premium report and Minnesota aid to police premium report.
349.213 LOCAL AUTHORITY.
Subd. 3.
Local gambling tax.
A statutory or home rule charter city that has one or more licensed organizations operating lawful gambling, and a county that has one or more licensed organizations outside incorporated areas operating lawful gambling, may impose a local gambling tax on each licensed organization within the city's or county's jurisdiction. The tax may be imposed only if the amount to be received by the city or county is necessary to cover the costs incurred by the city or county to regulate lawful gambling. The tax imposed by this subdivision may not exceed three percent per year of the gross receipts of a licensed organization from all lawful gambling less prizes actually paid out by the organization. A city or county may not use money collected under this subdivision for any purpose other than to regulate lawful gambling. All documents pertaining to site inspections, fines, penalties, or other corrective action involving local lawful gambling regulation must be shared with the board within 30 days of filing at the city or county of jurisdiction. A tax imposed under this subdivision is in lieu of all other local taxes and local investigation fees on lawful gambling. A city or county that imposes a tax under this subdivision shall annually, by March 15, file a report with the board in a form prescribed by the board showing (1) the amount of revenue produced by the tax during the preceding calendar year, and (2) the use of the proceeds of the tax.
Repealed Minnesota Rule: S0005-1
8125.0410 DISTRIBUTOR'S LICENSES.
Subpart 1.
Exemption from depositing securities or filing a bond.
The commissioner will determine which distributor license applicants are financially responsible and, as a result, qualify for the statutory exemption from depositing securities or filing a bond, by taking into consideration all relevant factors. Those factors include the following:
A.
whether the applicant's financial statement reflects that the applicant's current assets are at least equal to its current liabilities and that the applicant's net worth is at least three times its average quarterly motor fuel tax liability;
B.
whether the applicant has failed to file or has been delinquent in filing any motor fuel tax returns;
C.
whether the applicant has ever failed to pay its motor fuel tax liability, paid it late, or paid with a check that was later returned by the bank unpaid; and