{\rtf1\ansi\deff0{\fonttbl{\f0 Times New Roman;}}\margl480\margr0\margt0\margb0\fs20\n\line \line\n\line \line\n\line \line\n\line {\pard\n\line \n\line \n\line 1.1 A bill for an act \n\line 1.2 relating to taxation; making changes to income, \n\line 1.3 estate, franchise, sales and use, property, motor \n\line 1.4 vehicle sales tax and registration, cigarette and \n\line 1.5 tobacco, liquor, aggregate and minerals taxes; \n\line 1.6 creating and modifying certain sales tax exemptions; \n\line 1.7 extending sunset dates for certain sales and property \n\line 1.8 tax exemptions; providing for the disposition of local \n\line 1.9 sales taxes for the cities of Duluth, St. Paul, \n\line 1.10 Hermantown, Rochester, and Proctor; authorizing local \n\line 1.11 sales taxes in the cities of Beaver Bay, Bemidji, \n\line 1.12 Cloquet, Hopkins, Medford, and Park Rapids; \n\line 1.13 authorizing lodging taxes in the city of Newport and \n\line 1.14 Itasca county; providing property tax exemptions and \n\line 1.15 exclusions from property valuations; modifying \n\line 1.16 truth-in-taxation provisions; providing for the \n\line 1.17 creation of housing districts; authorizing or \n\line 1.18 modifying the authority of tax increment financing \n\line 1.19 districts in Detroit Lakes, Duluth, Monticello, New \n\line 1.20 Hope, Richfield, Roseville, and St. Michael; \n\line 1.21 authorizing the creation of and modifying the \n\line 1.22 authority of local districts and economic development \n\line 1.23 authorities; granting bonding authority to the state \n\line 1.24 agricultural society and other political subdivisions; \n\line 1.25 allowing bonding for computer systems and other \n\line 1.26 purposes; authorizing cities to establish a program \n\line 1.27 for issuance of capital improvement bonds; limiting \n\line 1.28 challenges to tax increment financing actions; \n\line 1.29 establishing the corporate status of an entity; \n\line 1.30 updating to federal provisions; modifying payment, \n\line 1.31 penalty, interest, and enforcement provisions; \n\line 1.32 distributing payments to counties; allowing counties \n\line 1.33 to sell tax liens; authorizing billing of counties for \n\line 1.34 certain medical exams; changing requirements for \n\line 1.35 purchases of recycled materials; making technical \n\line 1.36 changes; imposing penalties; amending Minnesota \n\line 1.37 Statutes 2002, sections 16B.121; 115B.24, subdivision \n\line 1.38 8; 168.012, subdivision 1; 168A.03; 216B.2424, \n\line 1.39 subdivision 5; 256.969, by adding a subdivision; \n\line 1.40 270.06; 270.10, subdivision 1a; 270.60, subdivision 4; \n\line 1.41 270.69, by adding a subdivision; 270.701, subdivision \n\line 1.42 2, by adding a subdivision; 270.72, subdivision 2; \n\line 1.43 270A.03, subdivision 2; 270B.12, by adding a \n\line 1.44 subdivision; 272.02, subdivisions 26, 31, 47, 53, by \n\line 1.45 adding subdivisions; 272.12; 273.01; 273.05, \n\line 1.46 subdivision 1; 273.061, by adding subdivisions; \n\line 2.1 273.08; 273.11, subdivision 1a, by adding \n\line 2.2 subdivisions; 273.124, subdivision 1; 273.13, \n\line 2.3 subdivisions 22, 25; 273.1315; 273.1398, subdivisions \n\line 2.4 4b, 4d; 273.372; 273.42, subdivision 2; 274.01, \n\line 2.5 subdivision 1; 274.13, subdivision 1; 275.025, \n\line 2.6 subdivisions 1, 3, 4; 275.065, subdivisions 1, 1a, 3; \n\line 2.7 276.04, subdivision 2; 276.10; 276.11, subdivision 1; \n\line 2.8 277.20, subdivision 2; 278.03, subdivision 1; 278.05, \n\line 2.9 subdivision 6; 279.01, subdivision 1, by adding a \n\line 2.10 subdivision; 279.06, subdivision 1; 281.17; 282.01, \n\line 2.11 subdivisions 1b, 7a; 282.08; 287.12; 287.29, \n\line 2.12 subdivision 1; 287.31, by adding a subdivision; \n\line 2.13 289A.02, subdivision 7; 289A.10, subdivision 1; \n\line 2.14 289A.19, subdivision 4; 289A.31, subdivisions 3, 4, by \n\line 2.15 adding a subdivision; 289A.36, subdivision 7, by \n\line 2.16 adding subdivisions; 289A.50, subdivision 2a; 289A.56, \n\line 2.17 subdivision 3; 289A.60, subdivision 7, by adding a \n\line 2.18 subdivision; 290.01, subdivisions 19, 19b, 19d, 31; \n\line 2.19 290.06, subdivision 2c; 290.0671, subdivision 1; \n\line 2.20 290.0675, subdivisions 2, 3; 290.0679, subdivision 2; \n\line 2.21 290.0802, subdivision 1; 290A.03, subdivisions 8, 15; \n\line 2.22 290C.02, subdivisions 3, 7; 290C.03; 290C.07; 290C.09; \n\line 2.23 290C.10; 290C.11; 291.005, subdivision 1; 291.03, \n\line 2.24 subdivision 1; 295.50, subdivision 9b; 295.53, \n\line 2.25 subdivision 1; 297A.61, subdivisions 3, 12, 34, by \n\line 2.26 adding subdivisions; 297A.62, subdivision 3; 297A.665; \n\line 2.27 297A.67, subdivisions 2, 18, by adding subdivisions; \n\line 2.28 297A.68, subdivisions 5, 36, by adding a subdivision; \n\line 2.29 297A.69, subdivisions 2, 3, 4; 297A.70, subdivisions \n\line 2.30 8, 16; 297A.71, subdivision 10, by adding \n\line 2.31 subdivisions; 297A.85; 297B.025, subdivisions 1, 2; \n\line 2.32 297B.03; 297B.035, subdivision 1, by adding a \n\line 2.33 subdivision; 297F.01, subdivisions 21a, 23; 297F.06, \n\line 2.34 subdivision 4; 297F.08, by adding a subdivision; \n\line 2.35 297F.20, subdivisions 1, 2, 3, 6, 9; 297G.01, by \n\line 2.36 adding a subdivision; 297G.03, subdivision 1; 297I.01, \n\line 2.37 subdivision 9; 297I.20; 352.15, subdivision 1; 353.15, \n\line 2.38 subdivision 1; 354.10, subdivision 1; 354B.30; \n\line 2.39 354C.165; 373.01, subdivision 3; 373.45, subdivision \n\line 2.40 1; 373.47, subdivision 1; 376.009; 376.55, subdivision \n\line 2.41 3, by adding a subdivision; 376.56, subdivision 3; \n\line 2.42 383B.77, subdivisions 1, 2; 410.32; 412.301; 469.169, \n\line 2.43 by adding a subdivision; 469.1731, subdivision 3; \n\line 2.44 469.174, subdivision 10, by adding subdivisions; \n\line 2.45 469.175, subdivision 3, by adding a subdivision; \n\line 2.46 469.176, subdivision 7; 469.1761, by adding a \n\line 2.47 subdivision; 469.1763, subdivision 2; 469.177, \n\line 2.48 subdivision 1; 469.1792; 473.39, by adding a \n\line 2.49 subdivision; 473F.07, subdivision 4; 473F.08, by \n\line 2.50 adding a subdivision; 475.58, subdivision 3b; \n\line 2.51 477A.011, subdivision 30; 515B.1-116; Laws 1967, \n\line 2.52 chapter 558, section 1, subdivision 5, as amended; \n\line 2.53 Laws 1978, chapter 464, section 1; Laws 1980, chapter \n\line 2.54 511, section 1, subdivision 2, as amended; Laws 1980, \n\line 2.55 chapter 511, section 2, as amended; Laws 1989, chapter \n\line 2.56 211, section 8, subdivision 2, as amended; Laws 1989, \n\line 2.57 chapter 211, section 8, subdivision 4, as amended; \n\line 2.58 Laws 1993, chapter 375, article 9, section 46, \n\line 2.59 subdivision 2, as amended; Laws 1996, chapter 471, \n\line 2.60 article 2, section 29; Laws 1998, chapter 389, article \n\line 2.61 8, section 43, subdivision 3; Laws 1998, chapter 389, \n\line 2.62 article 8, section 43, subdivision 4; Laws 1999, \n\line 2.63 chapter 243, article 4, section 18, subdivision 1; \n\line 2.64 Laws 1999, chapter 243, article 4, section 18, \n\line 2.65 subdivision 3; Laws 1999, chapter 243, article 4, \n\line 2.66 section 18, subdivision 4; Laws 1999, chapter 243, \n\line 2.67 article 4, section 19, as amended; Laws 2001, First \n\line 2.68 Special Session chapter 5, article 3, section 61, the \n\line 2.69 effective date; Laws 2001 First Special Session \n\line 2.70 chapter 5, article 3, section 63, the effective date; \n\line 2.71 Laws 2001, First Special Session chapter 5, article 3, \n\line 3.1 section 96; Laws 2001, First Special Session chapter \n\line 3.2 5, article 9, section 12, the effective date; Laws \n\line 3.3 2001, First Special Session chapter 5, article 12, \n\line 3.4 section 67, the effective date; Laws 2002, chapter \n\line 3.5 377, article 3, section 15, the effective date; Laws \n\line 3.6 2002 chapter 377, article 6, section 4, the effective \n\line 3.7 date; proposing coding for new law in Minnesota \n\line 3.8 Statutes, chapters 37; 270; 273; 275; 276; 290C; 410; \n\line 3.9 469; proposing coding for new law as Minnesota \n\line 3.10 Statutes, chapter 280A; repealing Minnesota Statutes \n\line 3.11 2002, sections 270.691, subdivision 8; 274.04; \n\line 3.12 290.0671, subdivision 3; 290.0675, subdivision 5; \n\line 3.13 294.01; 294.02; 294.021; 294.03; 294.06; 294.07; \n\line 3.14 294.08; 294.09; 294.10; 294.11; 294.12; 297A.72, \n\line 3.15 subdivision 1; 297A.97; 477A.065; Laws 1984, chapter \n\line 3.16 652, section 2; Laws 2002, chapter 377, article 9, \n\line 3.17 section 12, the effective date; Minnesota Rules, parts \n\line 3.18 8007.0300, subpart 3; 8009.7100; 8009.7200; 8009.7300; \n\line 3.19 8009.7400; 8092.1000; 8106.0100, subparts 11, 15, 16; \n\line 3.20 8106.0200; 8125.1000; 8125.1300, subpart 1; 8125.1400; \n\line 3.21 8130.0800, subparts 5, 12; 8130.1300; 8130.1600, \n\line 3.22 subpart 5; 8130.1700, subparts 3, 4; 8130.4800, \n\line 3.23 subpart 2; 8130.7500, subpart 5; 8130.8000; 8130.8300. \n\line 3.24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: \n\line 3.25 ARTICLE 1\n\line 3.26 SALES TAX\n\line 3.27 Section 1. Minnesota Statutes 2002, section 16B.121, is \n\line 3.28 amended to read: \n\line 3.29 16B.121 [PURCHASE OF RECYCLED, REPAIRABLE, AND DURABLE \n\line 3.30 MATERIALS.] \n\line 3.31 The commissioner shall take the recycled content and \n\line 3.32 recyclability of commodities to be purchased into consideration \n\line 3.33 in bid specifications. {\strike When feasible and when the price of} \n\line 3.34 {\strike recycled materials does not exceed the price of nonrecycled} \n\line 3.35 {\strike materials by more than ten percent,} The commissioner, and state \n\line 3.36 agencies when purchasing under delegated authority, shall \n\line 3.37 purchase recycled materials{\ul , unless the commissioner determines} \n\line 3.38 {\ul that the price of the recycled materials exceeds the price of} \n\line 3.39 {\ul nonrecycled materials by more than ten percent or that use of} \n\line 3.40 {\ul the recycled materials would be impracticable}. In order to \n\line 3.41 maximize the quantity and quality of recycled materials \n\line 3.42 purchased, the commissioner, and state agencies when purchasing \n\line 3.43 under delegated authority, may also use other appropriate \n\line 3.44 procedures to acquire recycled materials at the most economical \n\line 3.45 cost to the state. \n\line 3.46 When purchasing commodities and services, the commissioner, \n\line 3.47 and state agencies when purchasing under delegated authority, \n\line 4.1 shall apply and promote the preferred waste management practices \n\line 4.2 listed in section 115A.02, with special emphasis on reduction of \n\line 4.3 the quantity and toxicity of materials in waste. The \n\line 4.4 commissioner, and state agencies when purchasing under delegated \n\line 4.5 authority, in developing bid specifications, shall consider the \n\line 4.6 extent to which a commodity or product is durable, reusable, or \n\line 4.7 recyclable and marketable through the state resource recovery \n\line 4.8 program and the extent to which the commodity or product \n\line 4.9 contains postconsumer material. \n\line 4.10 Sec. 2. Minnesota Statutes 2002, section 168.012, \n\line 4.11 subdivision 1, is amended to read: \n\line 4.12 Subdivision 1. [VEHICLES EXEMPT FROM TAX, FEES, OR PLATE \n\line 4.13 DISPLAY.] (a) The following vehicles are exempt from the \n\line 4.14 provisions of this chapter requiring payment of tax and \n\line 4.15 registration fees, except as provided in subdivision 1c: \n\line 4.16 (1) vehicles owned and used solely in the transaction of \n\line 4.17 official business by the federal government, the state, or any \n\line 4.18 political subdivision; \n\line 4.19 (2) vehicles owned and used exclusively by educational \n\line 4.20 institutions and used solely in the transportation of pupils to \n\line 4.21 and from those institutions; \n\line 4.22 (3) vehicles used solely in driver education programs at \n\line 4.23 nonpublic high schools; \n\line 4.24 (4) vehicles owned by nonprofit charities and used \n\line 4.25 exclusively to transport disabled persons for educational \n\line 4.26 purposes; \n\line 4.27 (5) ambulances owned by ambulance services licensed under \n\line 4.28 section 144E.10, the general appearance of which is \n\line 4.29 unmistakable; {\strike and} \n\line 4.30 (6) {\ul vehicles used to provide emergency medical services,} \n\line 4.31 {\ul except as provided in paragraph (b), and owned by the state, a} \n\line 4.32 {\ul political subdivision, or an ambulance service licensed under} \n\line 4.33 {\ul section 144E.10; and} \n\line 4.34 {\ul (7)} vehicles owned by a commercial driving school licensed \n\line 4.35 under section 171.34, or an employee of a commercial driving \n\line 4.36 school licensed under section 171.34, and the vehicle is used \n\line 5.1 exclusively for driver education and training. \n\line 5.2 (b) Vehicles owned by the federal government, municipal \n\line 5.3 fire apparatuses including fire-suppression support vehicles, \n\line 5.4 police patrols, and ambulances, the general appearance of which \n\line 5.5 is unmistakable, are not required to register or display number \n\line 5.6 plates. \n\line 5.7 (c) Unmarked vehicles used in general police work, liquor \n\line 5.8 investigations, or arson investigations, and passenger \n\line 5.9 automobiles, pickup trucks, and buses owned or operated by the \n\line 5.10 department of corrections, must be registered and must display \n\line 5.11 appropriate license number plates, furnished by the registrar at \n\line 5.12 cost. Original and renewal applications for these license \n\line 5.13 plates authorized for use in general police work and for use by \n\line 5.14 the department of corrections must be accompanied by a \n\line 5.15 certification signed by the appropriate chief of police if \n\line 5.16 issued to a police vehicle, the appropriate sheriff if issued to \n\line 5.17 a sheriff's vehicle, the commissioner of corrections if issued \n\line 5.18 to a department of corrections vehicle, or the appropriate \n\line 5.19 officer in charge if issued to a vehicle of any other law \n\line 5.20 enforcement agency. The certification must be on a form \n\line 5.21 prescribed by the commissioner and state that the vehicle will \n\line 5.22 be used exclusively for a purpose authorized by this section. \n\line 5.23 (d) Unmarked vehicles used by the departments of revenue \n\line 5.24 and labor and industry, fraud unit, in conducting seizures or \n\line 5.25 criminal investigations must be registered and must display \n\line 5.26 passenger vehicle classification license number plates, \n\line 5.27 furnished at cost by the registrar. Original and renewal \n\line 5.28 applications for these passenger vehicle license plates must be \n\line 5.29 accompanied by a certification signed by the commissioner of \n\line 5.30 revenue or the commissioner of labor and industry. The \n\line 5.31 certification must be on a form prescribed by the commissioner \n\line 5.32 and state that the vehicles will be used exclusively for the \n\line 5.33 purposes authorized by this section. \n\line 5.34 (e) Unmarked vehicles used by the division of disease \n\line 5.35 prevention and control of the department of health must be \n\line 5.36 registered and must display passenger vehicle classification \n\line 6.1 license number plates. These plates must be furnished at cost \n\line 6.2 by the registrar. Original and renewal applications for these \n\line 6.3 passenger vehicle license plates must be accompanied by a \n\line 6.4 certification signed by the commissioner of health. The \n\line 6.5 certification must be on a form prescribed by the commissioner \n\line 6.6 and state that the vehicles will be used exclusively for the \n\line 6.7 official duties of the division of disease prevention and \n\line 6.8 control. \n\line 6.9 (f) Unmarked vehicles used by staff of the gambling control \n\line 6.10 board in gambling investigations and reviews must be registered \n\line 6.11 and must display passenger vehicle classification license number \n\line 6.12 plates. These plates must be furnished at cost by the \n\line 6.13 registrar. Original and renewal applications for these \n\line 6.14 passenger vehicle license plates must be accompanied by a \n\line 6.15 certification signed by the board chair. The certification must \n\line 6.16 be on a form prescribed by the commissioner and state that the \n\line 6.17 vehicles will be used exclusively for the official duties of the \n\line 6.18 gambling control board. \n\line 6.19 (g) All other motor vehicles must be registered and display \n\line 6.20 tax-exempt number plates, furnished by the registrar at cost, \n\line 6.21 except as provided in subdivision 1c. All vehicles required to \n\line 6.22 display tax-exempt number plates must have the name of the state \n\line 6.23 department or political subdivision, nonpublic high school \n\line 6.24 operating a driver education program, or licensed commercial \n\line 6.25 driving school, plainly displayed on both sides of the vehicle; \n\line 6.26 except that each state hospital and institution for the mentally \n\line 6.27 ill and mentally retarded may have one vehicle without the \n\line 6.28 required identification on the sides of the vehicle, and county \n\line 6.29 social service agencies may have vehicles used for child and \n\line 6.30 vulnerable adult protective services without the required \n\line 6.31 identification on the sides of the vehicle. This identification \n\line 6.32 must be in a color giving contrast with that of the part of the \n\line 6.33 vehicle on which it is placed and must endure throughout the \n\line 6.34 term of the registration. The identification must not be on a \n\line 6.35 removable plate or placard and must be kept clean and visible at \n\line 6.36 all times; except that a removable plate or placard may be \n\line 7.1 utilized on vehicles leased or loaned to a political subdivision \n\line 7.2 or to a nonpublic high school driver education program. \n\line 7.3 [EFFECTIVE DATE.] {\ul This section is effective July 1, 2003.} \n\line 7.4 Sec. 3. Minnesota Statutes 2002, section 168A.03, is \n\line 7.5 amended to read: \n\line 7.6 168A.03 [EXEMPT VEHICLES.] \n\line 7.7 {\ul Subdivision 1.} The registrar shall not issue a certificate \n\line 7.8 of title for: \n\line 7.9 (1) a vehicle owned by the United States; \n\line 7.10 (2) {\strike a vehicle owned by a manufacturer or dealer and held} \n\line 7.11 {\strike for sale, even though incidentally moved on the highway or used} \n\line 7.12 {\strike pursuant to section 168.27 or 168.28, or a vehicle used by a} \n\line 7.13 {\strike manufacturer solely for testing;} \n\line 7.14 {\strike (3)} a vehicle owned by a nonresident and not required by \n\line 7.15 law to be registered in this state; \n\line 7.16 {\strike (4)} {\ul (3)} a vehicle owned by a nonresident and regularly \n\line 7.17 engaged in the interstate transportation of persons or property \n\line 7.18 for which a currently effective certificate of title has been \n\line 7.19 issued in another state; \n\line 7.20 {\strike (5)} {\ul (4)} a vehicle moved solely by animal power; \n\line 7.21 {\strike (6)} {\ul (5)} an implement of husbandry; \n\line 7.22 {\strike (7)} {\ul (6)} special mobile equipment; \n\line 7.23 {\strike (8)} {\ul (7)} a self-propelled wheelchair or invalid tricycle; \n\line 7.24 {\strike (9)} {\ul (8)} a trailer (i) having a gross weight of 4,000 pounds \n\line 7.25 or less unless a secured party holds an interest in the trailer \n\line 7.26 or a certificate of title was previously issued by this state or \n\line 7.27 any other state or (ii) designed primarily for agricultural \n\line 7.28 purposes except recreational equipment or a manufactured home, \n\line 7.29 both as defined in section 168.011, subdivisions 8 and 25; \n\line 7.30 {\strike (10)} {\ul (9)} a snowmobile. \n\line 7.31 {\ul Subd. 2.} [DEALERS.] {\ul No certificate of title need be} \n\line 7.32 {\ul obtained for a vehicle owned by a manufacturer or dealer and} \n\line 7.33 {\ul held for sale, even though incidentally moved on the highway or} \n\line 7.34 {\ul used pursuant to section 168.27 or 168.28, or a vehicle used by} \n\line 7.35 {\ul a manufacturer solely for testing.} \n\line 7.36 [EFFECTIVE DATE.] {\ul This section is effective July 1, 2003.} \n\line 8.1 Sec. 4. Minnesota Statutes 2002, section 297A.61, \n\line 8.2 subdivision 3, is amended to read: \n\line 8.3 Subd. 3. [SALE AND PURCHASE.] (a) "Sale" and "purchase" \n\line 8.4 include, but are not limited to, each of the transactions listed \n\line 8.5 in this subdivision. \n\line 8.6 (b) Sale and purchase include: \n\line 8.7 (1) any transfer of title or possession, or both, of \n\line 8.8 tangible personal property, whether absolutely or conditionally, \n\line 8.9 for a consideration in money or by exchange or barter; and \n\line 8.10 (2) the leasing of or the granting of a license to use or \n\line 8.11 consume, for a consideration in money or by exchange or barter, \n\line 8.12 tangible personal property, other than a manufactured home used \n\line 8.13 for residential purposes for a continuous period of 30 days or \n\line 8.14 more. \n\line 8.15 (c) Sale and purchase include the production, fabrication, \n\line 8.16 printing, or processing of tangible personal property for a \n\line 8.17 consideration for consumers who furnish either directly or \n\line 8.18 indirectly the materials used in the production, fabrication, \n\line 8.19 printing, or processing. \n\line 8.20 (d) Sale and purchase include the preparing for a \n\line 8.21 consideration of food. Notwithstanding section 297A.67, \n\line 8.22 subdivision 2, taxable food includes, but is not limited to, the \n\line 8.23 following: \n\line 8.24 (1) prepared food sold by the retailer; \n\line 8.25 (2) soft drinks; \n\line 8.26 (3) candy; and \n\line 8.27 (4) all food sold through vending machines. \n\line 8.28 (e) A sale and a purchase includes the furnishing for a \n\line 8.29 consideration of electricity, gas, water, or steam for use or \n\line 8.30 consumption within this state. \n\line 8.31 (f) A sale and a purchase includes the transfer for a \n\line 8.32 consideration of computer software. \n\line 8.33 (g) A sale and a purchase includes the furnishing for a \n\line 8.34 consideration of the following services: \n\line 8.35 (1) the privilege of admission to places of amusement, \n\line 8.36 recreational areas, or athletic events, and the making available \n\line 9.1 of amusement devices, tanning facilities, reducing salons, steam \n\line 9.2 baths, turkish baths, health clubs, and spas or athletic \n\line 9.3 facilities; \n\line 9.4 (2) lodging and related services by a hotel, rooming house, \n\line 9.5 resort, campground, motel, or trailer camp and the granting of \n\line 9.6 any similar license to use real property other than the renting \n\line 9.7 or leasing of it for a continuous period of 30 days or more; \n\line 9.8 (3) parking services, whether on a contractual, hourly, or \n\line 9.9 other periodic basis, except for parking at a meter; \n\line 9.10 (4) the granting of membership in a club, association, or \n\line 9.11 other organization if: \n\line 9.12 (i) the club, association, or other organization makes \n\line 9.13 available for the use of its members sports and athletic \n\line 9.14 facilities, without regard to whether a separate charge is \n\line 9.15 assessed for use of the facilities; and \n\line 9.16 (ii) use of the sports and athletic facility is not made \n\line 9.17 available to the general public on the same basis as it is made \n\line 9.18 available to members. \n\line 9.19 Granting of membership means both onetime initiation fees and \n\line 9.20 periodic membership dues. Sports and athletic facilities \n\line 9.21 include golf courses; tennis, racquetball, handball, and squash \n\line 9.22 courts; basketball and volleyball facilities; running tracks; \n\line 9.23 exercise equipment; swimming pools; and other similar athletic \n\line 9.24 or sports facilities; \n\line 9.25 (5) delivery of aggregate materials and concrete block by a \n\line 9.26 third party if the delivery would be subject to the sales tax if \n\line 9.27 provided by the seller of the aggregate material or concrete \n\line 9.28 block; and \n\line 9.29 (6) services as provided in this clause: \n\line 9.30 (i) laundry and dry cleaning services including cleaning, \n\line 9.31 pressing, repairing, altering, and storing clothes, linen \n\line 9.32 services and supply, cleaning and blocking hats, and carpet, \n\line 9.33 drapery, upholstery, and industrial cleaning. Laundry and dry \n\line 9.34 cleaning services do not include services provided by coin \n\line 9.35 operated facilities operated by the customer; \n\line 9.36 (ii) motor vehicle washing, waxing, and cleaning services, \n\line 10.1 including services provided by coin operated facilities operated \n\line 10.2 by the customer, and rustproofing, undercoating, and towing of \n\line 10.3 motor vehicles; \n\line 10.4 (iii) building and residential cleaning, maintenance, and \n\line 10.5 disinfecting and exterminating services; \n\line 10.6 (iv) detective, security, burglar, fire alarm, and armored \n\line 10.7 car services; but not including services performed within the \n\line 10.8 jurisdiction they serve by off-duty licensed peace officers as \n\line 10.9 defined in section 626.84, subdivision 1, or services provided \n\line 10.10 by a nonprofit organization for monitoring and electronic \n\line 10.11 surveillance of persons placed on in-home detention pursuant to \n\line 10.12 court order or under the direction of the Minnesota department \n\line 10.13 of corrections; \n\line 10.14 (v) pet grooming services; \n\line 10.15 (vi) lawn care, fertilizing, mowing, spraying and sprigging \n\line 10.16 services; garden planting and maintenance; tree, bush, and shrub \n\line 10.17 pruning, bracing, spraying, and surgery; indoor plant care; \n\line 10.18 tree, bush, shrub, and stump removal; and tree trimming for \n\line 10.19 public utility lines. Services performed under a construction \n\line 10.20 contract for the installation of shrubbery, plants, sod, trees, \n\line 10.21 bushes, and similar items are not taxable; \n\line 10.22 (vii) massages, except when provided by a licensed health \n\line 10.23 care facility or professional or upon written referral from a \n\line 10.24 licensed health care facility or professional for treatment of \n\line 10.25 illness, injury, or disease; and \n\line 10.26 (viii) the furnishing of lodging, board, and care services \n\line 10.27 for animals in kennels and other similar arrangements, but \n\line 10.28 excluding veterinary and horse boarding services. \n\line 10.29 In applying the provisions of this chapter, the terms \n\line 10.30 "tangible personal property" and "sales at retail" include \n\line 10.31 taxable services and the provision of taxable services, unless \n\line 10.32 specifically provided otherwise. Services performed by an \n\line 10.33 employee for an employer are not taxable. Services performed by \n\line 10.34 a partnership or association for another partnership or \n\line 10.35 association are not taxable if one of the entities owns or \n\line 10.36 controls more than 80 percent of the voting power of the equity \n\line 11.1 interest in the other entity. Services performed between \n\line 11.2 members of an affiliated group of corporations are not taxable. \n\line 11.3 For purposes of this section, "affiliated group of corporations" \n\line 11.4 includes those entities that would be classified as members of \n\line 11.5 an affiliated group under United States Code, title 26, section \n\line 11.6 1504, and that are eligible to file a consolidated tax return \n\line 11.7 for federal income tax purposes. \n\line 11.8 (h) A sale and a purchase includes the furnishing for a \n\line 11.9 consideration of tangible personal property or taxable services \n\line 11.10 by the United States or any of its agencies or \n\line 11.11 instrumentalities, or the state of Minnesota, its agencies, \n\line 11.12 instrumentalities, or political subdivisions. \n\line 11.13 (i) A sale and a purchase includes the furnishing for a \n\line 11.14 consideration of telecommunications services, including cable \n\line 11.15 television services and direct satellite services. \n\line 11.16 Telecommunications services are taxed to the extent allowed \n\line 11.17 under federal law if those services: \n\line 11.18 (1) either (i) originate and terminate in this state; or \n\line 11.19 (ii) originate in this state and terminate outside the state and \n\line 11.20 the service is charged to a telephone number customer located in \n\line 11.21 this state or to the account of any transmission instrument in \n\line 11.22 this state; or (iii) originate outside this state and terminate \n\line 11.23 in this state and the service is charged to a telephone number \n\line 11.24 customer located in this state or to the account of any \n\line 11.25 transmission instrument in this state; or \n\line 11.26 (2) are rendered by providing a private communications \n\line 11.27 service for which the customer has one or more locations within \n\line 11.28 Minnesota connected to the service and the service is charged to \n\line 11.29 a telephone number customer located in this state or to the \n\line 11.30 account of any transmission instrument in this state. \n\line 11.31 All charges for mobile telecommunications services, as \n\line 11.32 defined in United States Code, title 4, section 124, are deemed \n\line 11.33 to be provided by the customer's home service provider and \n\line 11.34 sourced to the customer's place of primary use and are subject \n\line 11.35 to tax based upon the customer's place of primary use in \n\line 11.36 accordance with the Mobile Telecommunications Sourcing Act, \n\line 12.1 United States Code, title 4, sections 116 to 126. All other \n\line 12.2 definitions and provisions of the Mobile Telecommunications \n\line 12.3 Sourcing Act as provided in United States Code, title 4, are \n\line 12.4 hereby adopted. \n\line 12.5 (j) A sale and a purchase includes the furnishing for a \n\line 12.6 consideration of installation if the installation charges would \n\line 12.7 be subject to the sales tax if the installation were provided by \n\line 12.8 the seller of the item being installed. \n\line 12.9 {\ul (k) A sale and a purchase includes the rental of a vehicle} \n\line 12.10 {\ul by a motor vehicle dealer to a customer when (1) the vehicle is} \n\line 12.11 {\ul rented by the customer for a consideration, or (2) the motor} \n\line 12.12 {\ul vehicle dealer is reimbursed pursuant to a service contract as} \n\line 12.13 {\ul defined in section 65B.29, subdivision 1, clause (1).} \n\line 12.14 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 12.15 {\ul purchases made on or after July 1, 2003.} \n\line 12.16 Sec. 5. Minnesota Statutes 2002, section 297A.61, is \n\line 12.17 amended by adding a subdivision to read: \n\line 12.18 {\ul Subd. 35.} [DIRECT MAIL.] {\ul "Direct mail" means printed} \n\line 12.19 {\ul material delivered or distributed by United States Mail or other} \n\line 12.20 {\ul delivery service to a mass audience or to addressees on a} \n\line 12.21 {\ul mailing list provided by the purchaser or at the direction of} \n\line 12.22 {\ul the purchaser when the cost of the items is not billed directly} \n\line 12.23 {\ul to the recipients. "Direct mail" includes tangible personal} \n\line 12.24 {\ul property supplied directly or indirectly by the purchaser to the} \n\line 12.25 {\ul direct mail seller for inclusion in the package containing the} \n\line 12.26 {\ul printed material. "Direct mail" does not include multiple} \n\line 12.27 {\ul identical items of printed material delivered to a single} \n\line 12.28 {\ul address.} \n\line 12.29 [EFFECTIVE DATE.] {\ul This section is effective retroactively} \n\line 12.30 {\ul for delivery or distribution charges on sales and purchases made} \n\line 12.31 {\ul after December 31, 2001.} \n\line 12.32 Sec. 6. Minnesota Statutes 2002, section 297A.62, \n\line 12.33 subdivision 3, is amended to read: \n\line 12.34 Subd. 3. [MANUFACTURED HOUSING AND PARK TRAILERS.] For \n\line 12.35 retail sales of manufactured homes as defined in section 327.31, \n\line 12.36 subdivision 6, for residential uses, the sales tax under \n\line 13.1 subdivision 1 is imposed on 65 percent of the dealer's cost of \n\line 13.2 the manufactured home. For retail sales of new or used park \n\line 13.3 trailers, as defined in section 168.011, subdivision 8, \n\line 13.4 paragraph (b), the sales tax under subdivision 1 is imposed on \n\line 13.5 65 percent of the sales price of the park trailer. {\ul For retail} \n\line 13.6 {\ul sales of prefabricated homes subject to regulation under} \n\line 13.7 {\ul Minnesota Rules, chapter 1360 or 1361, for residential use, the} \n\line 13.8 {\ul sales tax under subdivision 1 is imposed on 65 percent of the} \n\line 13.9 {\ul manufacturer's wholesale list price of the prefabricated home.} \n\line 13.10 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 13.11 {\ul purchases occurring on or after July 1, 2003.} \n\line 13.12 Sec. 7. Minnesota Statutes 2002, section 297A.67, \n\line 13.13 subdivision 18, is amended to read: \n\line 13.14 Subd. 18. [USED {\ul AND REREFINED} MOTOR OILS.] Used motor oils \n\line 13.15 are exempt. {\ul Rerefined motor oils that meet American Petroleum} \n\line 13.16 {\ul Institute specifications for gasoline or diesel engines are} \n\line 13.17 {\ul exempt. The exemption for rerefined motor oils expires July 1,} \n\line 13.18 {\ul 2007.} \n\line 13.19 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 13.20 {\ul purchases made after June 30, 2003, and before July 1, 2007.} \n\line 13.21 Sec. 8. Minnesota Statutes 2002, section 297A.67, is \n\line 13.22 amended by adding a subdivision to read: \n\line 13.23 {\ul Subd. 31.} [RECYCLED COPIER AND PRINTING PAPER.] {\ul Copier} \n\line 13.24 {\ul paper with a minimum postconsumer recycled content of 30 percent} \n\line 13.25 {\ul by weight is exempt. Uncoated printing paper with a minimum of} \n\line 13.26 {\ul 30 percent postconsumer recycled content by weight is exempt.} \n\line 13.27 {\ul Coated printing paper with a minimum of ten percent postconsumer} \n\line 13.28 {\ul recycled content by weight is exempt. These exemptions expire} \n\line 13.29 {\ul July 1, 2007.} \n\line 13.30 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 13.31 {\ul purchases made after June 30, 2003, and before July 1, 2007.} \n\line 13.32 Sec. 9. Minnesota Statutes 2002, section 297A.67, is \n\line 13.33 amended by adding a subdivision to read: \n\line 13.34 {\ul Subd. 32.} [SERVICE LOANER VEHICLE COVERED BY \n\line 13.35 WARRANTY.] {\ul The loan of a vehicle by a motor vehicle dealer to a} \n\line 13.36 {\ul customer as a replacement for a vehicle being serviced or} \n\line 14.1 {\ul repaired is exempt if the vehicle is loaned pursuant to a} \n\line 14.2 {\ul warranty included in the original purchase price of the vehicle} \n\line 14.3 {\ul being serviced or repaired.} \n\line 14.4 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 14.5 {\ul following final enactment.} \n\line 14.6 Sec. 10. Minnesota Statutes 2002, section 297A.68, \n\line 14.7 subdivision 36, is amended to read: \n\line 14.8 Subd. 36. [DELIVERY OR DISTRIBUTION CHARGES; {\strike PRINTED} \n\line 14.9 {\strike MATERIALS} {\ul DIRECT MAIL}.] Charges for the delivery or distribution \n\line 14.10 of {\strike printed materials, including individual account} \n\line 14.11 {\strike information,} {\ul direct mail} are exempt if {\strike (1)} the charges are \n\line 14.12 separately stated{\strike , (2) the delivery or distribution is to a mass} \n\line 14.13 {\strike audience or to a mailing list provided at the direction of the} \n\line 14.14 {\strike customer, and (3) the cost of the materials is not billed} \n\line 14.15 {\strike directly to the recipients} {\ul on an invoice or similar billing} \n\line 14.16 {\ul document given to the purchaser}. \n\line 14.17 [EFFECTIVE DATE.] {\ul This section is effective retroactively} \n\line 14.18 {\ul for delivery or distribution charges on sales and purchases made} \n\line 14.19 {\ul after December 31, 2001.} \n\line 14.20 Sec. 11. Minnesota Statutes 2002, section 297A.70, \n\line 14.21 subdivision 8, is amended to read: \n\line 14.22 Subd. 8. [REGIONWIDE PUBLIC SAFETY RADIO COMMUNICATION \n\line 14.23 SYSTEM; PRODUCTS AND SERVICES.] Products and services including, \n\line 14.24 but not limited to, end user equipment used for construction, \n\line 14.25 ownership, operation, maintenance, and enhancement of the \n\line 14.26 backbone system of the regionwide public safety radio \n\line 14.27 communication system established under sections 473.891 to \n\line 14.28 473.905, are exempt. For purposes of this subdivision, backbone \n\line 14.29 system is defined in section 473.891, subdivision 9. This \n\line 14.30 subdivision is effective for purchases, sales, storage, use, or \n\line 14.31 consumption occurring before August 1, {\strike 2003} {\ul 2005}, in the \n\line 14.32 counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and \n\line 14.33 Washington. \n\line 14.34 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 14.35 {\ul following final enactment.} \n\line 14.36 Sec. 12. Minnesota Statutes 2002, section 297A.70, \n\line 15.1 subdivision 16, is amended to read: \n\line 15.2 Subd. 16. [CAMP FEES.] Camp fees to camps or other \n\line 15.3 recreation facilities owned and operated by an exempt \n\line 15.4 organization under section 501(c)(3) of the Internal Revenue \n\line 15.5 Code are exempt if the camps or facilities provide educational \n\line 15.6 and social activities {\strike for young people primarily age 18 and} \n\line 15.7 {\strike under} {\ul and at least 15 percent of the costs of operating and} \n\line 15.8 {\ul maintaining the camp are underwritten by charitable} \n\line 15.9 {\ul contributions}. \n\line 15.10 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 15.11 {\ul purchases made on or after June 30, 2003.} \n\line 15.12 Sec. 13. Minnesota Statutes 2002, section 297A.71, \n\line 15.13 subdivision 10, is amended to read: \n\line 15.14 Subd. 10. [AIRCRAFT HEAVY MAINTENANCE FACILITY.] \n\line 15.15 Materials, equipment, and supplies used or consumed in \n\line 15.16 constructing a heavy maintenance facility for aircraft that is \n\line 15.17 to be owned by the state of Minnesota or one of its political \n\line 15.18 subdivisions and leased by an airline company, {\ul an aircraft} \n\line 15.19 {\ul repair company,} or an aircraft engine repair facility described \n\line 15.20 in section 116R.02, subdivision 6, are exempt. {\strike Except for} \n\line 15.21 {\strike equipment owned or leased by a contractor, all machinery,} \n\line 15.22 {\strike equipment, and tools necessary to the construction and equipping} \n\line 15.23 {\strike of that facility in order to provide those services are also} \n\line 15.24 {\strike exempt.} \n\line 15.25 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 15.26 {\ul purchases made on or after July 1, 2003.} \n\line 15.27 Sec. 14. Minnesota Statutes 2002, section 297A.71, is \n\line 15.28 amended by adding a subdivision to read: \n\line 15.29 {\ul Subd. 32.} [CONSTRUCTION MATERIALS; MINNEAPOLIS \n\line 15.30 PLANETARIUM.] {\ul Materials and supplies used or consumed in the} \n\line 15.31 {\ul construction of a Minneapolis planetarium are exempt.} \n\line 15.32 [EFFECTIVE DATE.] {\ul This section is effective for purchases} \n\line 15.33 {\ul made on or after January 1, 2002, and before July 1, 2006.} \n\line 15.34 Sec. 15. Minnesota Statutes 2002, section 297A.71, is \n\line 15.35 amended by adding a subdivision to read: \n\line 15.36 {\ul Subd. 33.} [GUTHRIE THEATER.] {\ul Materials, equipment, and} \n\line 16.1 {\ul supplies used or consumed in construction of the Guthrie Theater} \n\line 16.2 {\ul and the related parking garage are exempt.} \n\line 16.3 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 16.4 {\ul following final enactment.} \n\line 16.5 Sec. 16. Minnesota Statutes 2002, section 297A.71, is \n\line 16.6 amended by adding a subdivision to read: \n\line 16.7 {\ul Subd. 34.} [CHILDREN'S THEATRE.] {\ul Materials, equipment, and} \n\line 16.8 {\ul supplies used or consumed in construction of the Children's} \n\line 16.9 {\ul Theatre in the city of Minneapolis are exempt.} \n\line 16.10 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 16.11 {\ul purchases made on or after July 1, 2003.} \n\line 16.12 Sec. 17. Minnesota Statutes 2002, section 297A.71, is \n\line 16.13 amended by adding a subdivision to read: \n\line 16.14 {\ul Subd. 35.} [WALKER ART CENTER.] {\ul Materials, equipment, and} \n\line 16.15 {\ul supplies used or consumed in construction of the Walker Art} \n\line 16.16 {\ul Center are exempt if more than $70,000,000 is raised from} \n\line 16.17 {\ul private sources to pay for a portion of the costs of the project.}\n\line 16.18 [EFFECTIVE DATE.] {\ul This section is effective for purchases} \n\line 16.19 {\ul made on or after June 1, 2003.} \n\line 16.20 Sec. 18. Minnesota Statutes 2002, section 297B.03, is \n\line 16.21 amended to read: \n\line 16.22 297B.03 [EXEMPTIONS.] \n\line 16.23 There is specifically exempted from the provisions of this \n\line 16.24 chapter and from computation of the amount of tax imposed by it \n\line 16.25 the following: \n\line 16.26 (1) purchase or use, including use under a lease purchase \n\line 16.27 agreement or installment sales contract made pursuant to section \n\line 16.28 465.71, of any motor vehicle by the United States and its \n\line 16.29 agencies and instrumentalities and by any person described in \n\line 16.30 and subject to the conditions provided in section 297A.67, \n\line 16.31 subdivision 11; \n\line 16.32 (2) purchase or use of any motor vehicle by any person who \n\line 16.33 was a resident of another state or country at the time of the \n\line 16.34 purchase and who subsequently becomes a resident of Minnesota, \n\line 16.35 provided the purchase occurred more than 60 days prior to the \n\line 16.36 date such person began residing in the state of Minnesota and \n\line 17.1 the motor vehicle was registered in the person's name in the \n\line 17.2 other state or country; \n\line 17.3 (3) purchase or use of any motor vehicle by any person \n\line 17.4 making a valid election to be taxed under the provisions of \n\line 17.5 section 297A.90; \n\line 17.6 (4) purchase or use of any motor vehicle previously \n\line 17.7 registered in the state of Minnesota when such transfer \n\line 17.8 constitutes a transfer within the meaning of section 118, 331, \n\line 17.9 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or \n\line 17.10 1563(a) of the Internal Revenue Code of 1986, as amended through \n\line 17.11 December 31, 1999; \n\line 17.12 (5) purchase or use of any vehicle owned by a resident of \n\line 17.13 another state and leased to a Minnesota based private or for \n\line 17.14 hire carrier for regular use in the transportation of persons or \n\line 17.15 property in interstate commerce provided the vehicle is titled \n\line 17.16 in the state of the owner or secured party, and that state does \n\line 17.17 not impose a sales tax or sales tax on motor vehicles used in \n\line 17.18 interstate commerce; \n\line 17.19 (6) purchase or use of a motor vehicle by a private \n\line 17.20 nonprofit or public educational institution for use as an \n\line 17.21 instructional aid in automotive training programs operated by \n\line 17.22 the institution. "Automotive training programs" includes motor \n\line 17.23 vehicle body and mechanical repair courses but does not include \n\line 17.24 driver education programs; \n\line 17.25 (7) purchase of a motor vehicle for use as an ambulance {\ul or} \n\line 17.26 {\ul to provide emergency medical services} by an ambulance service \n\line 17.27 licensed under section 144E.10; \n\line 17.28 (8) purchase of a motor vehicle by or for a public library, \n\line 17.29 as defined in section 134.001, subdivision 2, as a bookmobile or \n\line 17.30 library delivery vehicle; \n\line 17.31 (9) purchase of a ready-mixed concrete truck; \n\line 17.32 (10) purchase or use of a motor vehicle by a town for use \n\line 17.33 exclusively for road maintenance, including snowplows and dump \n\line 17.34 trucks, but not including automobiles, vans, or pickup trucks; \n\line 17.35 (11) purchase or use of a motor vehicle by a corporation, \n\line 17.36 society, association, foundation, or institution organized and \n\line 18.1 operated exclusively for charitable, religious, or educational \n\line 18.2 purposes, except a public school, university, or library, but \n\line 18.3 only if the vehicle is: \n\line 18.4 (i) a truck, as defined in section 168.011, a bus, as \n\line 18.5 defined in section 168.011, or a passenger automobile, as \n\line 18.6 defined in section 168.011, if the automobile is designed and \n\line 18.7 used for carrying more than nine persons including the driver; \n\line 18.8 and \n\line 18.9 (ii) intended to be used primarily to transport tangible \n\line 18.10 personal property or individuals, other than employees, to whom \n\line 18.11 the organization provides service in performing its charitable, \n\line 18.12 religious, or educational purpose; \n\line 18.13 (12) purchase of a motor vehicle for use by a transit \n\line 18.14 provider exclusively to provide transit service is exempt if the \n\line 18.15 transit provider is either (i) receiving financial assistance or \n\line 18.16 reimbursement under section 174.24 or 473.384, or (ii) operating \n\line 18.17 under section 174.29, 473.388, or 473.405. \n\line 18.18 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 18.19 {\ul purchases made on or after July 1, 2003.} \n\line 18.20 Sec. 19. Minnesota Statutes 2002, section 297B.035, is \n\line 18.21 amended by adding a subdivision to read: \n\line 18.22 {\ul Subd. 5.} [USE BY DEALER.] {\ul If a motor vehicle dealer uses a} \n\line 18.23 {\ul vehicle, purchased for resale in the ordinary course of} \n\line 18.24 {\ul business, other than for demonstration purposes, the dealer may} \n\line 18.25 {\ul elect to pay the motor vehicle sales tax under this chapter or} \n\line 18.26 {\ul the use tax under chapter 297A based on the reasonable rental} \n\line 18.27 {\ul value of the vehicle. If the motor vehicle dealer fails to} \n\line 18.28 {\ul report the use tax under chapter 297A, it is presumed that the} \n\line 18.29 {\ul dealer elected to pay the motor vehicle sales tax under this} \n\line 18.30 {\ul chapter.} \n\line 18.31 [EFFECTIVE DATE.] {\ul This section is effective for purchases} \n\line 18.32 {\ul made on or after July 1, 2003.} \n\line 18.33 Sec. 20. Laws 1999, chapter 243, article 4, section 19, as \n\line 18.34 amended by Laws 2001, First Special Session chapter 5, article \n\line 18.35 12, section 88, is amended to read: \n\line 18.36 Sec. 19. [EFFECTIVE DATES.] \n\line 19.1 Sections 1, 2, 5, 7, 9, and 11 are effective for sales and \n\line 19.2 purchases made after June 30, 1999. \n\line 19.3 Section 3 is effective for amended returns and refund \n\line 19.4 claims filed on or after July 1, 1999. \n\line 19.5 Section 4 is effective the day following final enactment \n\line 19.6 and applies retroactively to all open tax years and to \n\line 19.7 assessments and appeals under Minnesota Statutes, sections \n\line 19.8 289A.38 and 289A.65, for which the time limits have not expired \n\line 19.9 on the date of final enactment of this act. The provisions of \n\line 19.10 Minnesota Statutes, section 289A.50, apply to refunds claimed \n\line 19.11 under section 4. Refunds claimed under section 4 must be filed \n\line 19.12 by the later of December 31, 1999, or the time limit under \n\line 19.13 Minnesota Statutes, section 289A.40, subdivision 1. \n\line 19.14 Section 6 is effective retroactively for sales and \n\line 19.15 purchases made after June 30, 1998. \n\line 19.16 Section 8 is effective for purchases and sales made after \n\line 19.17 the date of final enactment. \n\line 19.18 Section 10 is effective for purchases made after the date \n\line 19.19 of final enactment and before July 1, {\strike 2003} {\ul 2005}. \n\line 19.20 Section 12 is effective the day after final enactment. \n\line 19.21 Section 12, paragraphs (a) to (c), apply to all local sales \n\line 19.22 taxes enacted after July 1, 1999. Section 12, paragraph (d), \n\line 19.23 applies to all local sales taxes in effect at the time of, or \n\line 19.24 imposed after the day of, the enactment of this section. \n\line 19.25 Section 13 is effective the day following final enactment. \n\line 19.26 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 19.27 {\ul following final enactment.} \n\line 19.28 Sec. 21. Laws 2001, First Special Session chapter 5, \n\line 19.29 article 12, section 67, the effective date, is amended to read: \n\line 19.30 [EFFECTIVE DATE.] This section is effective for purchases \n\line 19.31 and sales made after June 30, 2001, and before {\strike January 1, 2003} \n\line 19.32 {\ul July 1, 2005}. \n\line 19.33 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 19.34 {\ul following final enactment.} \n\line 19.35 Sec. 22. [STATE CONVENTION CENTER.] \n\line 19.36 {\ul (a) Building materials, supplies, or equipment used or} \n\line 20.1 {\ul consumed in constructing or equipping improvements to a state} \n\line 20.2 {\ul convention center located in a city outside the metropolitan} \n\line 20.3 {\ul area as defined in Minnesota Statutes, section 473.121,} \n\line 20.4 {\ul subdivision 2, and governed by an 11-person board of which four} \n\line 20.5 {\ul are appointed by the governor are exempt if the improvements are} \n\line 20.6 {\ul financed in whole or in part by nonstate resources including,} \n\line 20.7 {\ul but not limited to, revenue or general obligations issued by the} \n\line 20.8 {\ul state convention center board of the city in which the center is} \n\line 20.9 {\ul located. This exemption applies regardless of whether the items} \n\line 20.10 {\ul are purchased by the owner or by a contractor, subcontractor, or} \n\line 20.11 {\ul builder.} \n\line 20.12 {\ul (b) This section is intended to clarify the original intent} \n\line 20.13 {\ul of Minnesota Statutes, section 297A.71, subdivision 2.} \n\line 20.14 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 20.15 {\ul following final enactment and applies retroactively to sales and} \n\line 20.16 {\ul purchases made after June 30, 1995, and before July 1, 2001.} \n\line 20.17 Sec. 23. [REPEALER.] \n\line 20.18 {\ul Laws 2002, chapter 377, article 9, section 12, the} \n\line 20.19 {\ul effective date, is repealed effective the day following final} \n\line 20.20 {\ul enactment.} \n\line 20.21 ARTICLE 2\n\line 20.22 LOCAL LODGING AND SALES TAX ARTICLE\n\line 20.23 Section 1. Laws 1980, chapter 511, section 1, subdivision \n\line 20.24 2, as amended by Laws 1991, chapter 291, article 8, section 22, \n\line 20.25 and Laws 1998, chapter 389, article 8, section 25, is amended to \n\line 20.26 read: \n\line 20.27 Subd. 2. Notwithstanding Minnesota Statutes, Section \n\line 20.28 477A.016, or any other law, ordinance, or city charter provision \n\line 20.29 to the contrary, the city of Duluth may, by ordinance, impose an \n\line 20.30 additional sales tax of up to one and one-half percent on sales \n\line 20.31 transactions which are described in Minnesota Statutes {\ul 2000}, \n\line 20.32 Section 297A.01, Subdivision 3, Clause (c). When the city \n\line 20.33 council determines that the taxes imposed under this subdivision \n\line 20.34 and under section 26 at a rate of one-half of one percent have \n\line 20.35 produced revenue sufficient to pay {\ul (1)} the debt service on bonds \n\line 20.36 in a principal amount of $8,000,000 {\ul issued for capital} \n\line 21.1 {\ul improvements to the Duluth Entertainment and Convention Center,} \n\line 21.2 {\ul and (2) debt service on outstanding bonds originally issued in} \n\line 21.3 {\ul the principal amount of $4,970,000 to finance capital} \n\line 21.4 {\ul improvements to the Great Lakes Aquarium} since the imposition of \n\line 21.5 the taxes at the rate of one and one-half percent, the rate of \n\line 21.6 the tax under this subdivision is reduced to one percent. The \n\line 21.7 imposition of this tax shall not be subject to voter referendum \n\line 21.8 under either state law or city charter provisions. \n\line 21.9 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 21.10 {\ul the governing body of the city of Duluth and its chief clerical} \n\line 21.11 {\ul officer comply with Minnesota Statutes, section 645.021,} \n\line 21.12 {\ul subdivisions 2 and 3.} \n\line 21.13 Sec. 2. Laws 1980, chapter 511, section 2, as amended by \n\line 21.14 Laws 1998, chapter 389, article 8, section 26, is amended to \n\line 21.15 read: \n\line 21.16 Sec. 2. [CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND \n\line 21.17 MOTELS.] \n\line 21.18 Notwithstanding Minnesota Statutes, Section 477A.016, or \n\line 21.19 any other law, or ordinance, or city charter provision to the \n\line 21.20 contrary, the city of Duluth may, by ordinance, impose an \n\line 21.21 additional tax of one and one-half percent upon the gross \n\line 21.22 receipts from the sale of lodging for periods of less than 30 \n\line 21.23 days in hotels and motels located in the city. When the city \n\line 21.24 council determines that the taxes imposed under this section and \n\line 21.25 section 25 at a rate of one-half of one percent have produced \n\line 21.26 revenue sufficient to pay {\ul (1)} the debt service on bonds in a \n\line 21.27 principal amount of $8,000,000 {\ul issued for capital improvements} \n\line 21.28 {\ul for the Duluth Entertainment and Convention Center, and (2) the} \n\line 21.29 {\ul debt service on outstanding bonds originally issued in the} \n\line 21.30 {\ul principal amount of $4,970,000 to finance capital improvements} \n\line 21.31 {\ul to the Great Lakes Aquarium} since the imposition of the taxes at \n\line 21.32 the rate of one and one-half percent, the rate of the tax under \n\line 21.33 this section is reduced to one percent. The tax shall be \n\line 21.34 collected in the same manner as the tax set forth in the Duluth \n\line 21.35 city charter, section 54(d), paragraph one. The imposition of \n\line 21.36 this tax shall not be subject to voter referendum under either \n\line 22.1 state law or city charter provisions. \n\line 22.2 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 22.3 {\ul the governing body of the city of Duluth and its chief clerical} \n\line 22.4 {\ul officer comply with Minnesota Statutes, section 645.021,} \n\line 22.5 {\ul subdivisions 2 and 3.} \n\line 22.6 Sec. 3. Laws 1993, chapter 375, article 9, section 46, \n\line 22.7 subdivision 2, as amended by Laws 1997, chapter 231, article 7, \n\line 22.8 section 40, and Laws 1998, chapter 389, article 8, section 30, \n\line 22.9 is amended to read: \n\line 22.10 Subd. 2. [USE OF REVENUES.] Revenues received from the tax \n\line 22.11 authorized by subdivision 1 may only be used by the city to pay \n\line 22.12 the cost of collecting the tax, and to pay for the following \n\line 22.13 projects or to secure or pay any principal, premium, or interest \n\line 22.14 on bonds issued in accordance with subdivision 3 for the \n\line 22.15 following projects. \n\line 22.16 (a) To pay all or a portion of the capital expenses of \n\line 22.17 construction, equipment and acquisition costs for the expansion \n\line 22.18 and remodeling of the St. Paul Civic Center complex, including \n\line 22.19 the demolition of the existing arena and the construction and \n\line 22.20 equipping of a new arena. \n\line 22.21 (b) The remainder of the funds must be spent for: \n\line 22.22 (1) capital projects to further residential, cultural, \n\line 22.23 commercial, and economic development in both downtown St. Paul \n\line 22.24 and St. Paul neighborhoods{\strike . The amount apportioned under this} \n\line 22.25 {\strike paragraph shall be no less than 60 percent of the revenues} \n\line 22.26 {\strike derived from the tax each year, except to the extent that a} \n\line 22.27 {\strike portion of that amount is required to pay debt service on (1)} \n\line 22.28 {\strike bonds issued for the purposes of paragraph (a) prior to March 1,} \n\line 22.29 {\strike 1998; or (2) bonds issued for the purposes of paragraph (a)} \n\line 22.30 {\strike after March 1, 1998, but only if the city council determines} \n\line 22.31 {\strike that 40 percent of the revenues derived from the tax together} \n\line 22.32 {\strike with other revenues pledged to the payment of the bonds,} \n\line 22.33 {\strike including the proceeds of definitive bonds, is expected to} \n\line 22.34 {\strike exceed the annual debt service on the bonds}; and \n\line 22.35 (2) the operating expenses of cultural organizations in the \n\line 22.36 city, provided that the amount spent under this clause {\strike may not} \n\line 23.1 {\strike exceed} {\ul must equal} ten percent of the total amount spent under \n\line 23.2 this paragraph {\ul in any year}. \n\line 23.3 (c) {\ul The amount apportioned under paragraph (b) shall be no} \n\line 23.4 {\ul less than 60 percent of the revenues derived from the tax each} \n\line 23.5 {\ul year, except to the extent that a portion of that amount is} \n\line 23.6 {\ul required to pay debt service on (1) bonds issued for the} \n\line 23.7 {\ul purposes of paragraph (a) prior to March 1, 1998; or (2) bonds} \n\line 23.8 {\ul issued for the purposes of paragraph (a) after March 1, 1998,} \n\line 23.9 {\ul but only if the city council determines that 40 percent of the} \n\line 23.10 {\ul revenues derived from the tax together with other revenues} \n\line 23.11 {\ul pledged to the payment of the bonds, including the proceeds of} \n\line 23.12 {\ul definitive bonds, is expected to exceed the annual debt service} \n\line 23.13 {\ul on the bonds.} \n\line 23.14 {\ul (d)} If in any year more than 40 percent of the revenue \n\line 23.15 derived from the tax authorized by subdivision 1 is used to pay \n\line 23.16 debt service on the bonds issued for the purposes of paragraph \n\line 23.17 (a) and to fund a reserve for the bonds, the amount of the debt \n\line 23.18 service payment that exceeds 40 percent of the revenue must be \n\line 23.19 determined for that year. In any year when 40 percent of the \n\line 23.20 revenue produced by the sales tax exceeds the amount required to \n\line 23.21 pay debt service on the bonds and to fund a reserve for the \n\line 23.22 bonds under paragraph (a), the amount of the excess must be made \n\line 23.23 available for capital projects to further residential, cultural, \n\line 23.24 commercial, and economic development in the neighborhoods and \n\line 23.25 downtown until the cumulative amounts determined for all years \n\line 23.26 under the preceding sentence have been made available under this \n\line 23.27 sentence. The amount made available as reimbursement in the \n\line 23.28 preceding sentence is not included in the 60 percent determined \n\line 23.29 under paragraph {\strike (b)} {\ul (c)}. \n\line 23.30 {\strike (d)} {\ul (e)} By January 15 of each odd-numbered year, the mayor \n\line 23.31 and the city council must report to the legislature on the use \n\line 23.32 of sales tax revenues during the preceding two-year period. \n\line 23.33 [EFFECTIVE DATE.] {\ul This section is effective for} \n\line 23.34 {\ul distributions after April 30, 2003.} \n\line 23.35 Sec. 4. Laws 1996, chapter 471, article 2, section 29, is \n\line 23.36 amended to read: \n\line 24.1 Sec. 29. [CITY OF HERMANTOWN; SALES {\ul AND USE} TAX.] \n\line 24.2 Subdivision 1. [SALES {\ul AND USE} TAX AUTHORIZED.] {\ul (a)} \n\line 24.3 Notwithstanding Minnesota Statutes, section 477A.016, or any \n\line 24.4 other contrary provision of law, ordinance, or city charter, the \n\line 24.5 city of Hermantown may, by ordinance, impose an additional sales \n\line 24.6 {\ul and use} tax of up to one percent on sales {\strike transactions}{\ul , storage,} \n\line 24.7 {\ul and use} taxable pursuant to Minnesota Statutes, chapter 297A, \n\line 24.8 that occur within the city. \n\line 24.9 {\ul (b)} The proceeds of the {\ul first one-half of one percent of} \n\line 24.10 tax imposed under this section must be used {\strike to meet the costs of} \n\line 24.11 {\ul by the city for the following projects}: \n\line 24.12 (1) extending a sewer interceptor line; \n\line 24.13 (2) construction of a booster pump station, reservoirs, and \n\line 24.14 related improvements to the water system; and \n\line 24.15 (3) construction of a police and fire station. \n\line 24.16 {\ul (c) Revenues received from the remaining one-half of one} \n\line 24.17 {\ul percent of the tax authorized under this section must be used by} \n\line 24.18 {\ul the city to pay all or part of the capital and administrative} \n\line 24.19 {\ul costs of developing, acquiring, constructing, and initially} \n\line 24.20 {\ul furnishing and equipping for the following projects:} \n\line 24.21 {\ul (1) construction of a community recreation center;} \n\line 24.22 {\ul (2) completion of a civic center services complex;} \n\line 24.23 {\ul (3) construction and relocation of a new public works} \n\line 24.24 {\ul facility;} \n\line 24.25 {\ul (4) construction of roads, street improvements, and other} \n\line 24.26 {\ul traffic control measures within the city; and} \n\line 24.27 {\ul (5) acquisition, construction, and improvement of parks and} \n\line 24.28 {\ul trails within the city.} \n\line 24.29 {\ul (d) Authorized expenses include, but are not limited to,} \n\line 24.30 {\ul acquiring property, paying construction, administrative, and} \n\line 24.31 {\ul operating expenses related to the development of the projects} \n\line 24.32 {\ul listed in paragraph (c), paying debt service on bonds or other} \n\line 24.33 {\ul obligations, including lease obligations, issued to finance} \n\line 24.34 {\ul construction, expansion, or improvement of the projects listed} \n\line 24.35 {\ul in paragraph (c), and other compatible uses, including but not} \n\line 24.36 {\ul limited to, parking, lighting, and landscaping.} \n\line 25.1 Subd. 2. [REFERENDUM.] {\ul (a)} If the Hermantown city council \n\line 25.2 proposes to impose the sales tax authorized by this section, it \n\line 25.3 shall conduct a referendum on the issue. \n\line 25.4 {\ul (b) If the Hermantown city council initially imposes the} \n\line 25.5 {\ul tax at a rate less than one percent and proposes increasing it} \n\line 25.6 {\ul at a later date up to the authorized rate in subdivision 1, it} \n\line 25.7 {\ul shall conduct a referendum on the increase.} \n\line 25.8 {\ul (c)} The question of imposing {\ul or increasing} the tax must be \n\line 25.9 submitted to the voters at a special or general election. The \n\line 25.10 tax may not be imposed unless a majority of votes cast on the \n\line 25.11 question of imposing the tax are in the affirmative. The \n\line 25.12 commissioner of revenue shall prepare a suggested form of \n\line 25.13 question to be presented at the election. This subdivision \n\line 25.14 applies notwithstanding any city charter provision to the \n\line 25.15 contrary. \n\line 25.16 Subd. 3. [ENFORCEMENT; COLLECTION; AND ADMINISTRATION OF \n\line 25.17 TAXES.] A sales tax imposed under this section must be reported \n\line 25.18 and paid to the commissioner of revenue with the state sales \n\line 25.19 taxes, and be subject to the same penalties, interest, and \n\line 25.20 enforcement provisions. The proceeds of the tax, less refunds \n\line 25.21 and a proportionate share of the cost of collection, shall be \n\line 25.22 remitted at least quarterly to the city. The commissioner shall \n\line 25.23 deduct from the proceeds remitted an amount that equals the \n\line 25.24 indirect statewide cost as well as the direct and indirect \n\line 25.25 department costs necessary to administer, audit, and collect the \n\line 25.26 tax. The amount deducted shall be deposited in the state \n\line 25.27 general fund. \n\line 25.28 {\ul Subd. 3a.} [BONDING AUTHORITY.] {\ul (a) The city may issue} \n\line 25.29 {\ul general obligation bonds under Minnesota Statutes, chapter 475,} \n\line 25.30 {\ul to finance the costs in subdivision 1, paragraph (c). The total} \n\line 25.31 {\ul amount of bonds issued for the projects under subdivision 1,} \n\line 25.32 {\ul paragraph (c), may not exceed $12,900,000 in the aggregate. An} \n\line 25.33 {\ul election to approve the bonds is not required.} \n\line 25.34 {\ul (b) The bonds are not included in computing any debt} \n\line 25.35 {\ul limitation applicable to the city and the levy of taxes under} \n\line 25.36 {\ul Minnesota Statutes, section 475.61, to pay principal of and} \n\line 26.1 {\ul interest on the bonds is not subject to any levy limitation.} \n\line 26.2 {\ul (c) The taxes authorized under this section may be pledged} \n\line 26.3 {\ul to and used for the payment of the bonds and any bonds issued to} \n\line 26.4 {\ul refund them.} \n\line 26.5 Subd. 4. [TERMINATION.] The {\ul portion of the} tax authorized \n\line 26.6 {\strike under this section} {\ul to finance the improvements described in} \n\line 26.7 {\ul subdivision 1, paragraph (b),} terminates at the later of (1) ten \n\line 26.8 years after the date of initial imposition of the tax, or (2) on \n\line 26.9 the first day of the second month next succeeding a \n\line 26.10 determination by the city council that sufficient funds have \n\line 26.11 been received from {\ul that portion of} the tax {\ul dedicated} to finance \n\line 26.12 {\strike the} {\ul those} improvements {\strike described in subdivision 1, clauses (1)} \n\line 26.13 {\strike to (3),} and to prepay or retire at maturity the principal, \n\line 26.14 interest, and premium due on any bonds issued for the \n\line 26.15 improvements. {\ul The portion of the tax authorized to finance the} \n\line 26.16 {\ul improvements described in subdivision 1, paragraph (c),} \n\line 26.17 {\ul terminates when the revenues raised are sufficient to finance} \n\line 26.18 {\ul those improvements, up to an amount equal to $12,900,000 plus} \n\line 26.19 {\ul any interest, premium, and other costs associated with the bonds} \n\line 26.20 {\ul issued under subdivision 3a. The city council may terminate} \n\line 26.21 {\ul this portion of the tax earlier.} Any funds remaining after \n\line 26.22 completion of the improvements and retirement or redemption of \n\line 26.23 the bonds may be placed in the general fund of the city. \n\line 26.24 Subd. 5. [LOCAL APPROVAL; EFFECTIVE DATE.] This section is \n\line 26.25 effective the day after final enactment, upon compliance with \n\line 26.26 Minnesota Statutes, section 645.021, subdivision 3, by the city \n\line 26.27 of Hermantown. \n\line 26.28 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 26.29 {\ul the governing body of the city of Hermantown and its chief} \n\line 26.30 {\ul clerical officer comply with Minnesota Statutes, section} \n\line 26.31 {\ul 645.021, subdivisions 2 and 3.} \n\line 26.32 Sec. 5. Laws 1998, chapter 389, article 8, section 43, \n\line 26.33 subdivision 3, is amended to read: \n\line 26.34 Subd. 3. [USE OF REVENUES.] Revenues received from the \n\line 26.35 taxes authorized by subdivisions 1 and 2 must be used by the \n\line 26.36 city to pay for the cost of collecting and administering the \n\line 27.1 taxes and to pay for the following projects: \n\line 27.2 (1) transportation infrastructure improvements including \n\line 27.3 {\strike both} {\ul regional} highway and airport improvements; \n\line 27.4 (2) improvements to the civic center complex; \n\line 27.5 (3) a municipal water, sewer, and storm sewer project \n\line 27.6 necessary to improve regional ground water quality; and \n\line 27.7 (4) construction of a regional recreation and sports center \n\line 27.8 and {\strike associated} {\ul other} facilities available for both community and \n\line 27.9 student use{\strike ,} {\ul that are} located {\ul on state-owned land} at or adjacent \n\line 27.10 to the Rochester center. \n\line 27.11 The total amount of capital expenditures or bonds for these \n\line 27.12 projects that may be paid from the revenues raised from the \n\line 27.13 taxes authorized in this section may not exceed \n\line 27.14 {\strike $71,500,000} {\ul $111,500,000}. The total amount of capital \n\line 27.15 expenditures or bonds for the project in clause (4) that may be \n\line 27.16 paid from the revenues raised from the taxes authorized in this \n\line 27.17 section may not exceed {\strike $20,000,000} {\ul $28,000,000}. \n\line 27.18 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 27.19 {\ul the governing body of Rochester and its chief clerical officer} \n\line 27.20 {\ul timely complete their compliance with Minnesota Statutes,} \n\line 27.21 {\ul section 645.021, subdivisions 2 and 3.} \n\line 27.22 Sec. 6. Laws 1998, chapter 389, article 8, section 43, \n\line 27.23 subdivision 4, is amended to read: \n\line 27.24 Subd. 4. [BONDING AUTHORITY.] (a) The city may issue bonds \n\line 27.25 under Minnesota Statutes, chapter 475, to finance the capital \n\line 27.26 expenditure and improvement projects. An election to approve \n\line 27.27 the bonds under Minnesota Statutes, section 475.58, may be held \n\line 27.28 in combination with the election to authorize imposition of the \n\line 27.29 tax under subdivision 1. Whether to permit imposition of the \n\line 27.30 tax and issuance of bonds may be posed to the voters as a single \n\line 27.31 question. The question must state that the sales tax revenues \n\line 27.32 are pledged to pay the bonds, but that the bonds are general \n\line 27.33 obligations and will be guaranteed by the city's property taxes. \n\line 27.34 (b) The issuance of bonds under this subdivision is not \n\line 27.35 subject to Minnesota Statutes, section 275.60. \n\line 27.36 (c) The bonds are not included in computing any debt \n\line 28.1 limitation applicable to the city, and the levy of taxes under \n\line 28.2 Minnesota Statutes, section 475.61, to pay principal of and \n\line 28.3 interest on the bonds is not subject to any levy limitation. \n\line 28.4 The aggregate principal amount of bonds, plus the aggregate of \n\line 28.5 the taxes used directly to pay eligible capital expenditures and \n\line 28.6 improvements may not exceed {\strike $71,500,000} {\ul $111,500,000}, plus an \n\line 28.7 amount equal to the costs related to issuance of the bonds. \n\line 28.8 (d) The taxes may be pledged to and used for the payment of \n\line 28.9 the bonds and any bonds issued to refund them, only if the bonds \n\line 28.10 and any refunding bonds are general obligations of the city. \n\line 28.11 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 28.12 {\ul the governing body of Rochester and its chief clerical officer} \n\line 28.13 {\ul timely complete their compliance with Minnesota Statutes,} \n\line 28.14 {\ul section 645.021, subdivisions 2 and 3.} \n\line 28.15 Sec. 7. Laws 1999, chapter 243, article 4, section 18, \n\line 28.16 subdivision 1, is amended to read: \n\line 28.17 Subdivision 1. [SALES AND USE TAX.] {\ul (a)} Notwithstanding \n\line 28.18 Minnesota Statutes, section {\strike 297A.48, subdivision 1a,} 477A.016, \n\line 28.19 or any other provision of law, ordinance, or city charter, if \n\line 28.20 approved by the city voters at the first municipal general \n\line 28.21 election held after the date of final enactment of this act or \n\line 28.22 at a special election held November 2, 1999, the city of Proctor \n\line 28.23 may impose by ordinance a sales and use tax of up to one-half of \n\line 28.24 one percent for the purposes specified in subdivision 3{\ul ,} \n\line 28.25 {\ul paragraph (a)}. The provisions of Minnesota Statutes, \n\line 28.26 section {\strike 297A.48} {\ul 297A.99}, govern the imposition, administration, \n\line 28.27 collection, and enforcement of the tax authorized under this \n\line 28.28 subdivision. \n\line 28.29 {\ul (b) The city of Proctor may impose by ordinance an} \n\line 28.30 {\ul additional sales and use tax of up to one-half of one percent if} \n\line 28.31 {\ul approved by the city voters at a general election or at a} \n\line 28.32 {\ul special election held for this purpose. The revenues received} \n\line 28.33 {\ul from this additional tax must be used for the purposes specified} \n\line 28.34 {\ul in subdivision 3, paragraph (b).} \n\line 28.35 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 28.36 {\ul following final enactment, upon compliance by the city of} \n\line 29.1 {\ul Proctor with Minnesota Statutes, section 645.021, subdivision 3.} \n\line 29.2 Sec. 8. Laws 1999, chapter 243, article 4, section 18, \n\line 29.3 subdivision 3, is amended to read: \n\line 29.4 Subd. 3. [USE OF REVENUES.] {\ul (a)} Revenues received from \n\line 29.5 taxes authorized by subdivisions 1{\ul , paragraph (a),} and 2 must be \n\line 29.6 used by the city to pay the cost of collecting the taxes and to \n\line 29.7 pay for construction and improvement of the following city \n\line 29.8 facilities: \n\line 29.9 (1) streets; and \n\line 29.10 (2) constructing and equipping the Proctor community \n\line 29.11 activity center. \n\line 29.12 Authorized expenses include, but are not limited to, \n\line 29.13 acquiring property, paying construction and operating expenses \n\line 29.14 related to the development of an authorized facility, and paying \n\line 29.15 debt service on bonds or other obligations, including lease \n\line 29.16 obligations, issued to finance the construction, expansion, or \n\line 29.17 improvement of an authorized facility. The capital expenses for \n\line 29.18 all projects authorized under this paragraph that may be paid \n\line 29.19 with these taxes is limited to $3,600,000, plus an amount equal \n\line 29.20 to the costs related to issuance of the bonds. \n\line 29.21 {\ul (b) Revenues received from taxes authorized by subdivision} \n\line 29.22 {\ul 1, paragraph (b), must be used by the city to pay the cost of} \n\line 29.23 {\ul collecting the taxes and for construction and improvements of} \n\line 29.24 {\ul city streets, public utilities, sidewalks, bikeways, and trails.} \n\line 29.25 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 29.26 {\ul following final enactment, upon compliance by the city of} \n\line 29.27 {\ul Proctor with Minnesota Statutes, section 645.021, subdivision 3.} \n\line 29.28 Sec. 9. Laws 1999, chapter 243, article 4, section 18, \n\line 29.29 subdivision 4, is amended to read: \n\line 29.30 Subd. 4. [BONDING AUTHORITY.] (a) The city may issue bonds \n\line 29.31 under Minnesota Statutes, chapter 475, to finance the capital \n\line 29.32 expenditure and improvement projects described in subdivision \n\line 29.33 3. An election to approve the bonds under Minnesota Statutes, \n\line 29.34 section 475.58, is not required. \n\line 29.35 (b) The issuance of bonds under this subdivision is not \n\line 29.36 subject to Minnesota Statutes, sections 275.60 and {\strike 279.61} {\ul 275.61}.\n\line 30.1 (c) The bonds are not included in computing any debt \n\line 30.2 limitation applicable to the city, and the levy of taxes under \n\line 30.3 Minnesota Statutes, section 475.61, to pay principal of and \n\line 30.4 interest on the bonds is not subject to any levy limitation. \n\line 30.5 (d) {\ul For projects described in subdivision 3, paragraph (a),} \n\line 30.6 the aggregate principal amount of bonds, plus the aggregate of \n\line 30.7 the taxes used directly to pay eligible capital expenditures and \n\line 30.8 improvements, may not exceed $3,600,000, plus an amount equal to \n\line 30.9 the costs related to issuance of the bonds, including interest \n\line 30.10 on the bonds. {\ul For projects described in subdivision 3,} \n\line 30.11 {\ul paragraph (b), the aggregate principal amount of bonds may not} \n\line 30.12 {\ul exceed $7,200,000, plus an amount equal to the costs related to} \n\line 30.13 {\ul issuance of the bonds, including interest on the bonds.} \n\line 30.14 (e) The sales and use and excise taxes authorized in this \n\line 30.15 section may be pledged to and used for the payment of the bonds \n\line 30.16 and any bonds issued to refund them only if the bonds and any \n\line 30.17 refunding bonds are general obligations of the city. \n\line 30.18 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 30.19 {\ul following final enactment, upon compliance by the city of} \n\line 30.20 {\ul Proctor with Minnesota Statutes, section 645.021, subdivision 3.} \n\line 30.21 Sec. 10. [CITY OF BEAVER BAY; TAXES AUTHORIZED.] \n\line 30.22 {\ul Subdivision 1.} [SALES AND USE TAXES.] {\ul Notwithstanding} \n\line 30.23 {\ul Minnesota Statutes, section 477A.016, or any other provision of} \n\line 30.24 {\ul law or ordinance, if approved by the voters of the city at the} \n\line 30.25 {\ul next general election held after the date of final enactment of} \n\line 30.26 {\ul this act, the city of Beaver Bay may impose by ordinance a sales} \n\line 30.27 {\ul and use tax at a rate of up to one percent for the purposes} \n\line 30.28 {\ul specified in subdivision 2. The provisions of Minnesota} \n\line 30.29 {\ul Statutes, section 297A.99, govern the imposition,} \n\line 30.30 {\ul administration, collection, and enforcement of the tax} \n\line 30.31 {\ul authorized under this subdivision.} \n\line 30.32 {\ul Subd. 2.} [USE OF REVENUES.] {\ul The revenues received from} \n\line 30.33 {\ul taxes authorized by subdivision 1 must be used to pay the bonded} \n\line 30.34 {\ul indebtedness on the city community building and to provide} \n\line 30.35 {\ul funding for recreational facilities, the upgrading of the water} \n\line 30.36 {\ul and sewer system, upgrading and replacement of fire equipment,} \n\line 31.1 {\ul and improvement of streets.} \n\line 31.2 {\ul Subd. 3.} [TERMINATION OF TAXES.] {\ul The authority granted} \n\line 31.3 {\ul under subdivision 1 to the city of Beaver Bay to impose sales} \n\line 31.4 {\ul and use taxes expires when the city council determines that the} \n\line 31.5 {\ul amount of revenue received to pay the costs of the projects} \n\line 31.6 {\ul described in subdivision 2 shall meet or exceed $1,500,000. Any} \n\line 31.7 {\ul funds remaining after completion of the projects may be placed} \n\line 31.8 {\ul in the general fund of the city. The tax imposed under} \n\line 31.9 {\ul subdivision 1 may expire at an earlier time if the city so} \n\line 31.10 {\ul determines by ordinance.} \n\line 31.11 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 31.12 {\ul the governing body of the city of Beaver Bay and its chief} \n\line 31.13 {\ul clerical officer timely comply with Minnesota Statutes, section} \n\line 31.14 {\ul 645.021, subdivisions 2 and 3.} \n\line 31.15 Sec. 11. [CITY OF BEMIDJI.] \n\line 31.16 {\ul Subdivision 1.} [SALES AND USE TAX AUTHORIZED.] \n\line 31.17 {\ul Notwithstanding Minnesota Statutes, section 477A.016, or any} \n\line 31.18 {\ul other provision of law, ordinance, or city charter, pursuant to} \n\line 31.19 {\ul the approval of the city voters at the general election held on} \n\line 31.20 {\ul November 5, 2002, the city of Bemidji may impose by ordinance a} \n\line 31.21 {\ul sales and use tax of one-half of one percent for the purposes} \n\line 31.22 {\ul specified in subdivision 2. The provisions of Minnesota} \n\line 31.23 {\ul Statutes, section 297A.99, govern the imposition,} \n\line 31.24 {\ul administration, collection, and enforcement of the tax} \n\line 31.25 {\ul authorized under this subdivision.} \n\line 31.26 {\ul Subd. 2.} [USE OF REVENUES.] {\ul Revenues received from the tax} \n\line 31.27 {\ul authorized by subdivision 1 must be used for the cost of} \n\line 31.28 {\ul collecting and administering the tax and to pay all or part of} \n\line 31.29 {\ul the capital or administrative costs of the acquisition,} \n\line 31.30 {\ul construction, and improvement of parks and trails within the} \n\line 31.31 {\ul city, as provided for in the city of Bemidji's parks, open space} \n\line 31.32 {\ul and trail system plan, adopted by the Bemidji city council on} \n\line 31.33 {\ul November 21, 2001. Authorized expenses include, but are not} \n\line 31.34 {\ul limited to, acquiring property, paying construction expenses} \n\line 31.35 {\ul related to the development of these facilities and improvements,} \n\line 31.36 {\ul and securing and paying debt service on bonds or other} \n\line 32.1 {\ul obligations issued to finance acquisition, construction,} \n\line 32.2 {\ul improvement, or development of parks and trails within the city} \n\line 32.3 {\ul of Bemidji.} \n\line 32.4 {\ul Subd. 3.} [BONDS.] {\ul Pursuant to the approval of the city} \n\line 32.5 {\ul voters at the general election held on November 5, 2002, the} \n\line 32.6 {\ul city of Bemidji may issue without additional election general} \n\line 32.7 {\ul obligation bonds of the city in an amount not to exceed} \n\line 32.8 {\ul $9,826,000 to pay capital and administrative expenses for the} \n\line 32.9 {\ul acquisition, construction, improvement, and development of parks} \n\line 32.10 {\ul and trails as specified in subdivision 2. The debt represented} \n\line 32.11 {\ul by the bonds must not be included in computing any debt} \n\line 32.12 {\ul limitations applicable to the city, and the levy of taxes} \n\line 32.13 {\ul required by Minnesota Statutes, section 475.61, to pay the} \n\line 32.14 {\ul principal of any interest on the bonds must not be subject to} \n\line 32.15 {\ul any levy limitations or be included in computing or applying any} \n\line 32.16 {\ul levy limitation applicable to the city.} \n\line 32.17 {\ul Subd. 4.} [TERMINATION OF TAX.] {\ul The tax imposed under} \n\line 32.18 {\ul subdivision 1 expires when the Bemidji city council determines} \n\line 32.19 {\ul that the amount described in subdivision 3 has been received} \n\line 32.20 {\ul from the tax to finance the capital and administrative costs for} \n\line 32.21 {\ul acquisition, construction, improvement, and development of parks} \n\line 32.22 {\ul and trails and to repay or retire at maturity the principal,} \n\line 32.23 {\ul interest, and premium due on any bonds issued for the park and} \n\line 32.24 {\ul trail improvements under subdivision 3. Any funds remaining} \n\line 32.25 {\ul after completion of the park and trail improvements and} \n\line 32.26 {\ul retirement or redemption of the bonds may be placed in the} \n\line 32.27 {\ul general fund of the city. The tax imposed under subdivision 1} \n\line 32.28 {\ul may expire at an earlier time if the city so determines by} \n\line 32.29 {\ul ordinance.} \n\line 32.30 {\ul Subd. 5.} [EXEMPTION.] {\ul Products and services used for} \n\line 32.31 {\ul repair or maintenance of aircraft are exempt from the taxes} \n\line 32.32 {\ul imposed under this section.} \n\line 32.33 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 32.34 {\ul compliance by the governing body of the city of Bemidji with} \n\line 32.35 {\ul Minnesota Statutes, section 645.021, subdivision 3.} \n\line 32.36 Sec. 12. [CITY OF CLOQUET; TAXES AUTHORIZED.] \n\line 33.1 {\ul Subdivision 1.} [SALES AND USE TAX.] {\ul Notwithstanding} \n\line 33.2 {\ul Minnesota Statutes, section 477A.016, or any other provision of} \n\line 33.3 {\ul law, ordinance, or city charter, if approved by the voters} \n\line 33.4 {\ul pursuant to Minnesota Statutes, section 297A.99, the city of} \n\line 33.5 {\ul Cloquet may impose by ordinance a sales and use tax of up to} \n\line 33.6 {\ul one-half of one percent for the purpose specified in subdivision} \n\line 33.7 {\ul 3. The provisions of Minnesota Statutes, section 297A.99,} \n\line 33.8 {\ul govern the imposition, administration, collection, and} \n\line 33.9 {\ul enforcement of the tax authorized under this subdivision.} \n\line 33.10 {\ul Subd. 2.} [EXCISE TAX AUTHORIZED.] {\ul Notwithstanding} \n\line 33.11 {\ul Minnesota Statutes, section 477A.016, or any other provision of} \n\line 33.12 {\ul law, ordinance, or city charter, the city of Cloquet may impose} \n\line 33.13 {\ul by ordinance, for the purposes specified in subdivision 3, an} \n\line 33.14 {\ul excise tax of up to $20 per motor vehicle, as defined by} \n\line 33.15 {\ul ordinance, purchased or acquired from any person engaged within} \n\line 33.16 {\ul the city in the business of selling motor vehicles at retail.} \n\line 33.17 {\ul Subd. 3.} [USE OF REVENUES.] {\ul Revenues received from taxes} \n\line 33.18 {\ul authorized by subdivisions 1 and 2 must be used by the city to} \n\line 33.19 {\ul pay the cost of collecting the taxes and to pay for the} \n\line 33.20 {\ul following projects:} \n\line 33.21 {\ul (1) construction and implementation of riverfront task} \n\line 33.22 {\ul force park improvements including Veteran's Park; and} \n\line 33.23 {\ul (2) extension of water and sewer lines and other} \n\line 33.24 {\ul improvements to city infrastructure necessary for construction} \n\line 33.25 {\ul of a city industrial park.} \n\line 33.26 {\ul Authorized expenses include, but are not limited to,} \n\line 33.27 {\ul acquiring property and paying construction expenses related to} \n\line 33.28 {\ul these improvements, and paying debt service on bonds or other} \n\line 33.29 {\ul obligations issued to finance acquisition and construction of} \n\line 33.30 {\ul these improvements.} \n\line 33.31 {\ul Subd. 4.} [BONDING AUTHORITY.] {\ul (a) The city may issue bonds} \n\line 33.32 {\ul under Minnesota Statutes, chapter 475, to pay capital and} \n\line 33.33 {\ul administrative expenses for the improvements described in} \n\line 33.34 {\ul subdivision 3 in an amount that does not exceed $6,000,000. An} \n\line 33.35 {\ul election to approve the bonds under Minnesota Statutes, section} \n\line 33.36 {\ul 475.58, is not required.} \n\line 34.1 {\ul (b) The issuance of bonds under this subdivision is not} \n\line 34.2 {\ul subject to Minnesota Statutes, sections 275.60 and 275.61.} \n\line 34.3 {\ul (c) The debt represented by the bonds is not included in} \n\line 34.4 {\ul computing any debt limitation applicable to the city, and any} \n\line 34.5 {\ul levy of taxes under Minnesota Statutes, section 475.61, to pay} \n\line 34.6 {\ul principal of and interest on the bonds is not subject to any} \n\line 34.7 {\ul levy limitation.} \n\line 34.8 {\ul Subd. 5.} [TERMINATION OF TAXES.] {\ul The taxes imposed under} \n\line 34.9 {\ul subdivisions 1 and 2 expire at the earlier of (1) 12 years, or} \n\line 34.10 {\ul (2) when the city council determines that sufficient funds have} \n\line 34.11 {\ul been received from the taxes to finance the capital and} \n\line 34.12 {\ul administrative costs of the improvements described in} \n\line 34.13 {\ul subdivision 3, plus the additional amount needed to pay the} \n\line 34.14 {\ul costs related to issuance of bonds under subdivision 4,} \n\line 34.15 {\ul including interest on the bonds. Any funds remaining after} \n\line 34.16 {\ul completion of the project and retirement or redemption of the} \n\line 34.17 {\ul bonds may be placed in the general fund of the city. The taxes} \n\line 34.18 {\ul imposed under subdivisions 1 and 2 may expire at an earlier time} \n\line 34.19 {\ul if the city so determines by ordinance.} \n\line 34.20 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 34.21 {\ul the governing body of the city of Cloquet and its chief clerical} \n\line 34.22 {\ul officer timely comply with Minnesota Statutes, section 645.021,} \n\line 34.23 {\ul subdivisions 2 and 3.} \n\line 34.24 Sec. 13. [CITY OF HOPKINS; FOOD AND BEVERAGE TAX.] \n\line 34.25 {\ul Subdivision 1.} [SALES AND USE TAX.] {\ul Notwithstanding} \n\line 34.26 {\ul Minnesota Statutes, section 477A.016, or any ordinance, city} \n\line 34.27 {\ul charter, or other provision of law, the city of Hopkins may, by} \n\line 34.28 {\ul ordinance, impose a sales tax of up to one percent on the gross} \n\line 34.29 {\ul receipts of all food and beverages, including on-sale} \n\line 34.30 {\ul intoxicating beverages and fermented malt beverages, sold at} \n\line 34.31 {\ul licensed on-sale liquor establishments, restaurants, or other} \n\line 34.32 {\ul places of refreshment located within the geographic boundaries} \n\line 34.33 {\ul of the city. The imposition of this tax is subject to the} \n\line 34.34 {\ul referendum requirement in subdivision 3.} \n\line 34.35 {\ul Subd. 2.} [USE OF PROCEEDS FROM FOOD AND BEVERAGE TAX.] {\ul The} \n\line 34.36 {\ul proceeds of any tax imposed under subdivision 1 shall be used by} \n\line 35.1 {\ul the city to fund public arts purposes. Authorized expenses} \n\line 35.2 {\ul include, but are not limited to, expenses related to public art} \n\line 35.3 {\ul facilities, community or public arts projects, or purchase or} \n\line 35.4 {\ul acquisition of art for public purposes.} \n\line 35.5 {\ul Subd. 3.} [REFERENDUM.] {\ul The tax must not be imposed until} \n\line 35.6 {\ul it has been submitted to the voters at a general or special} \n\line 35.7 {\ul election and a majority of votes cast on the question of} \n\line 35.8 {\ul approving the imposition of the tax is in the affirmative.} \n\line 35.9 {\ul Subd. 4.} [ENFORCEMENT, COLLECTION, AND ADMINISTRATION OF \n\line 35.10 THE TAX.] {\ul The tax shall be collected and administered in the} \n\line 35.11 {\ul same manner as general local sales taxes under Minnesota} \n\line 35.12 {\ul Statutes, section 297A.99, subdivision 9.} \n\line 35.13 {\ul Subd. 5.} [EXPIRATION.] {\ul The tax imposed under this section} \n\line 35.14 {\ul expires five years after it first becomes effective.} \n\line 35.15 [EFFECTIVE DATE.] {\ul This section is effective upon approval} \n\line 35.16 {\ul by the city of Hopkins city council and compliance with} \n\line 35.17 {\ul Minnesota Statutes, section 645.021, subdivision 3.} \n\line 35.18 Sec. 14. [LODGING TAX; ITASCA COUNTY AUTHORITY.] \n\line 35.19 {\ul Notwithstanding Minnesota Statutes, section 469.190,} \n\line 35.20 {\ul subdivisions 1 and 4, no town located in Itasca county may} \n\line 35.21 {\ul impose the local lodging tax authorized in Minnesota Statutes,} \n\line 35.22 {\ul section 469.190, but the county of Itasca may impose the local} \n\line 35.23 {\ul lodging tax authorized in that section in all towns and} \n\line 35.24 {\ul unorganized territories within the county. Any existing taxes} \n\line 35.25 {\ul imposed by a town in that county will expire the day that a} \n\line 35.26 {\ul county tax is imposed under this section.} \n\line 35.27 {\ul If the county board exercises the authority under this} \n\line 35.28 {\ul section, it must determine by resolution that imposition of the} \n\line 35.29 {\ul tax is in the county's interest. The resolution is subject to} \n\line 35.30 {\ul the same notice and reverse referendum requirements that would} \n\line 35.31 {\ul apply under Minnesota Statutes, section 469.190, subdivision 5,} \n\line 35.32 {\ul if the county was only imposing the tax in an unorganized} \n\line 35.33 {\ul territory. The provisions of Minnesota Statutes, section} \n\line 35.34 {\ul 469.190, subdivisions 2, 3, 6, and 7, also apply to a tax} \n\line 35.35 {\ul imposed under this section.} \n\line 35.36 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 36.1 {\ul the governing body of Itasca county and its chief clerical} \n\line 36.2 {\ul officer comply with Minnesota Statutes, section 645.021,} \n\line 36.3 {\ul subdivisions 2 and 3.} \n\line 36.4 Sec. 15. [CITY OF MEDFORD; SALES AND USE TAX.] \n\line 36.5 {\ul Subdivision 1.} [SALES AND USE TAX AUTHORIZED.] \n\line 36.6 {\ul Notwithstanding Minnesota Statutes, section 477A.016, or any} \n\line 36.7 {\ul other provision of law, ordinance, or city charter, the city of} \n\line 36.8 {\ul Medford may, by ordinance, impose a sales and use tax of} \n\line 36.9 {\ul one-half of one percent for the purposes specified in} \n\line 36.10 {\ul subdivision 2. Except as otherwise specifically provided, the} \n\line 36.11 {\ul provisions of Minnesota Statutes, section 297A.99, govern the} \n\line 36.12 {\ul imposition, administration, collection, and enforcement of the} \n\line 36.13 {\ul tax authorized under this subdivision.} \n\line 36.14 {\ul Subd. 2.} [USE OF REVENUES.] {\ul The proceeds of the tax} \n\line 36.15 {\ul imposed under this section must be used to pay up to $5,000,000} \n\line 36.16 {\ul in costs related to improving the city's wastewater system and} \n\line 36.17 {\ul wastewater treatment plant.} \n\line 36.18 {\ul Subd. 3.} [REFERENDUM.] {\ul If the Medford city council} \n\line 36.19 {\ul proposes to impose the tax authorized by this section, the} \n\line 36.20 {\ul question of imposing the tax must be submitted to the voters at} \n\line 36.21 {\ul the next general election. The tax may not be imposed unless} \n\line 36.22 {\ul the majority of votes cast on the question of imposing the tax} \n\line 36.23 {\ul are in the affirmative. The commissioner of revenue shall} \n\line 36.24 {\ul prepare a suggested form of the question to be presented at the} \n\line 36.25 {\ul election. The question must state that the sales tax revenues} \n\line 36.26 {\ul would be pledged to pay any bonds issued under subdivision 4 and} \n\line 36.27 {\ul that these bonds are guaranteed by the city's property taxes.} \n\line 36.28 {\ul Subd. 4.} [BONDING AUTHORITY.] {\ul (a) The city may issue bonds} \n\line 36.29 {\ul under Minnesota Statutes, chapter 475, to finance the capital} \n\line 36.30 {\ul expenditure and improvement projects authorized under} \n\line 36.31 {\ul subdivision 2. The total amount of bonds issued for the} \n\line 36.32 {\ul projects listed in subdivision 2 may not exceed $5,000,000 in} \n\line 36.33 {\ul aggregate. An election to approve the bonds, as required under} \n\line 36.34 {\ul Minnesota Statutes, section 475.58, is not required.} \n\line 36.35 {\ul (b) The issuance of the bonds under this subdivision is not} \n\line 36.36 {\ul subject to Minnesota Statutes, sections 275.60 and 275.61.} \n\line 37.1 {\ul (c) The bonds are not included in computing any debt} \n\line 37.2 {\ul limitation applicable to the city, and the levy of taxes under} \n\line 37.3 {\ul Minnesota Statutes, section 475.61, to pay the principal of and} \n\line 37.4 {\ul interest on the bonds is not subject to any levy limitation.} \n\line 37.5 {\ul (d) The taxes authorized under this section may be pledged} \n\line 37.6 {\ul to and used for the payment of the bonds and any bonds issued to} \n\line 37.7 {\ul refund them only if the bonds and any refunding bonds are} \n\line 37.8 {\ul general obligations of the city.} \n\line 37.9 {\ul Subd. 5.} [TERMINATION OF TAXES.] {\ul The taxes imposed under} \n\line 37.10 {\ul this section expire at the earlier of (1) 20 years after the} \n\line 37.11 {\ul taxes are first imposed, or (2) when the city council first} \n\line 37.12 {\ul determines that the amount of revenues raised to pay for the} \n\line 37.13 {\ul projects under subdivision 2 shall meet or exceed the sum of} \n\line 37.14 {\ul $5,000,000, plus an amount equal to the costs related to the} \n\line 37.15 {\ul issuance of bonds under subdivision 4. Any funds remaining} \n\line 37.16 {\ul after completion of the projects and retirement or redemption of} \n\line 37.17 {\ul the bonds may be placed in the general funds of the city.} \n\line 37.18 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 37.19 {\ul compliance with the governing body of the city of Medford with} \n\line 37.20 {\ul Minnesota Statutes, section 645.021, subdivision 3.} \n\line 37.21 Sec. 16. [CITY OF NEWPORT; LODGING TAX.] \n\line 37.22 {\ul Subdivision 1.} [LODGING TAX.] {\ul Notwithstanding Minnesota} \n\line 37.23 {\ul Statutes, section 477A.016, or any ordinance, city charter, or} \n\line 37.24 {\ul other provision of law, the city of Newport may, by ordinance,} \n\line 37.25 {\ul impose a tax of up to three percent upon the gross receipts from} \n\line 37.26 {\ul the sale of lodging for periods of less than 30 days in hotels} \n\line 37.27 {\ul and motels located in the city. The tax does not apply to the} \n\line 37.28 {\ul furnishing of lodging by a business having less than 25 lodging} \n\line 37.29 {\ul rooms. The total amount of taxes imposed under this section and} \n\line 37.30 {\ul under Minnesota Statutes, section 469.190, shall not exceed} \n\line 37.31 {\ul three percent.} \n\line 37.32 {\ul Subd. 2.} [USE OF PROCEEDS.] {\ul The proceeds of any tax} \n\line 37.33 {\ul imposed in subdivision 1 shall be used by the city to fund} \n\line 37.34 {\ul economic development and redevelopment of the city. Authorized} \n\line 37.35 {\ul expenses include, but are not limited to, acquisition and} \n\line 37.36 {\ul development costs of open space, parks, and trails.} \n\line 38.1 {\ul Subd. 3.} [ENFORCEMENT, COLLECTION, AND \n\line 38.2 ADMINISTRATION.] {\ul The tax shall be collected and administered in} \n\line 38.3 {\ul the same manner as local lodging taxes under Minnesota Statutes,} \n\line 38.4 {\ul section 469.190.} \n\line 38.5 [EFFECTIVE DATE.] {\ul This section is effective upon approval} \n\line 38.6 {\ul by the Newport city council and compliance with Minnesota} \n\line 38.7 {\ul Statutes, section 645.021, subdivision 3.} \n\line 38.8 Sec. 17. [CITY OF PARK RAPIDS.] \n\line 38.9 {\ul Subdivision 1.} [SALES AND USE TAX AUTHORIZED.] \n\line 38.10 {\ul Notwithstanding Minnesota Statutes, section 477A.016, or any} \n\line 38.11 {\ul other provision of law, ordinance, or city charter, pursuant to} \n\line 38.12 {\ul the approval of the city voters at the next general election or} \n\line 38.13 {\ul at a special election held for this purpose, the city of Park} \n\line 38.14 {\ul Rapids may impose by ordinance a sales and use tax of one} \n\line 38.15 {\ul percent for the purposes specified in subdivision 2. The} \n\line 38.16 {\ul provisions of Minnesota Statutes, section 297A.99, govern the} \n\line 38.17 {\ul imposition, administration, collection, and enforcement of the} \n\line 38.18 {\ul tax authorized under this subdivision.} \n\line 38.19 {\ul Subd. 2.} [USE OF REVENUES.] {\ul Revenues received from the tax} \n\line 38.20 {\ul authorized by subdivision 1 must be used for the cost of} \n\line 38.21 {\ul collecting and administering the tax and to pay all or part of} \n\line 38.22 {\ul the capital or administrative costs of the development,} \n\line 38.23 {\ul acquisition, construction, and improvement of the following} \n\line 38.24 {\ul projects:} \n\line 38.25 {\ul (1) two-thirds of the cost of construction and operation of} \n\line 38.26 {\ul a community center that may include a senior citizen center,} \n\line 38.27 {\ul fitness center, swimming pool, meeting rooms, indoor track, and} \n\line 38.28 {\ul racquetball, basketball, and tennis courts, provided that an} \n\line 38.29 {\ul amount equal to one-third of the cost of construction is} \n\line 38.30 {\ul received from private sources;} \n\line 38.31 {\ul (2) capital improvement projects including, but not limited} \n\line 38.32 {\ul to, installation of water, sewer, storm sewer, street} \n\line 38.33 {\ul improvements, new city water tower and well, costs related to} \n\line 38.34 {\ul improvements to marked trunk highway 34; and} \n\line 38.35 {\ul (3) park improvements.} \n\line 38.36 {\ul Authorized expenses include, but are not limited to,} \n\line 39.1 {\ul acquiring property, paying construction expenses related to the} \n\line 39.2 {\ul development of these facilities and improvements, and securing} \n\line 39.3 {\ul and paying debt service on bonds or other obligations issued to} \n\line 39.4 {\ul finance acquisition, construction, improvement, or development.} \n\line 39.5 {\ul Subd. 3.} [BONDS.] {\ul Pursuant to the approval of the city} \n\line 39.6 {\ul voters to impose the tax authorized in subdivision 1, the city} \n\line 39.7 {\ul of Park Rapids may issue without an additional election general} \n\line 39.8 {\ul obligation bonds of the city to pay capital and administrative} \n\line 39.9 {\ul expenses for the acquisition, construction, improvement, and} \n\line 39.10 {\ul development of the projects specified in subdivision 2. The} \n\line 39.11 {\ul debt represented by the bonds must not be included in computing} \n\line 39.12 {\ul any debt limitations applicable to the city, and the levy of} \n\line 39.13 {\ul taxes required by Minnesota Statutes, section 475.61, to pay the} \n\line 39.14 {\ul principal or any interest on the bonds must not be subject to} \n\line 39.15 {\ul any levy limitations or be included in computing or applying any} \n\line 39.16 {\ul levy limitation applicable to the city.} \n\line 39.17 {\ul Subd. 4.} [TERMINATION OF TAX.] {\ul The tax imposed under} \n\line 39.18 {\ul subdivision 1 expires the earlier of July 1, 2023, or when the} \n\line 39.19 {\ul city council determines that sufficient revenues have been} \n\line 39.20 {\ul received to retire the bonds in subdivision 3. Any funds} \n\line 39.21 {\ul remaining after completion of the projects specified in} \n\line 39.22 {\ul subdivision 2 and retirement or redemption of the bonds may be} \n\line 39.23 {\ul placed in the general fund of the city. The tax imposed under} \n\line 39.24 {\ul subdivision 1 may expire at an earlier time if the city so} \n\line 39.25 {\ul determines by ordinance.} \n\line 39.26 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 39.27 {\ul compliance by the governing body of the city of Park Rapids with} \n\line 39.28 {\ul Minnesota Statutes, section 645.021, subdivision 3.} \n\line 39.29 ARTICLE 3\n\line 39.30 PROPERTY TAX\n\line 39.31 Section 1. Minnesota Statutes 2002, section 216B.2424, \n\line 39.32 subdivision 5, is amended to read: \n\line 39.33 Subd. 5. [MANDATE.] (a) A public utility, as defined in \n\line 39.34 section 216B.02, subdivision 4, that operates a nuclear-powered \n\line 39.35 electric generating plant within this state must construct and \n\line 39.36 operate, purchase, or contract to construct and operate (1) by \n\line 40.1 December 31, 1998, 50 megawatts of electric energy installed \n\line 40.2 capacity generated by farm-grown closed-loop biomass scheduled \n\line 40.3 to be operational by December 31, 2001; and (2) by December 31, \n\line 40.4 1998, an additional 75 megawatts of installed capacity so \n\line 40.5 generated scheduled to be operational by December 31, 2002. \n\line 40.6 (b) Of the 125 megawatts of biomass electricity installed \n\line 40.7 capacity required under this subdivision, no more than 50 \n\line 40.8 megawatts of this capacity may be provided by a facility that \n\line 40.9 uses poultry litter as its primary fuel source and any such \n\line 40.10 facility: \n\line 40.11 (1) need not use biomass that complies with the definition \n\line 40.12 in subdivision 1; \n\line 40.13 (2) must enter into a contract with the public utility for \n\line 40.14 such capacity, that has an average purchase price per megawatt \n\line 40.15 hour over the life of the contract that is equal to or less than \n\line 40.16 the average purchase price per megawatt hour over the life of \n\line 40.17 the contract in contracts approved by the public utilities \n\line 40.18 commission before April 1, 2000, to satisfy the mandate of this \n\line 40.19 section, and file that contract with the public utilities \n\line 40.20 commission prior to September 1, 2000; and \n\line 40.21 (3) must schedule such capacity to be operational by \n\line 40.22 December 31, 2002. \n\line 40.23 (c) Of the total 125 megawatts of biomass electric energy \n\line 40.24 installed capacity required under this section, no more than 75 \n\line 40.25 megawatts may be provided by a single project. \n\line 40.26 (d) Of the 75 megawatts of biomass electric energy \n\line 40.27 installed capacity required under paragraph (a), clause (2), no \n\line 40.28 more than 25 megawatts of this capacity may be provided by a St. \n\line 40.29 Paul district heating and cooling system cogeneration facility \n\line 40.30 utilizing waste wood as a primary fuel source. The St. Paul \n\line 40.31 district heating and cooling system cogeneration facility need \n\line 40.32 not use biomass that complies with the definition in subdivision \n\line 40.33 1. \n\line 40.34 (e) The public utility must accept and consider on an equal \n\line 40.35 basis with other biomass proposals: \n\line 40.36 (1) a proposal to satisfy the requirements of this section \n\line 41.1 that includes a project that exceeds the megawatt capacity \n\line 41.2 requirements of either paragraph (a), clause (1) or (2), and \n\line 41.3 that proposes to sell the excess capacity to the public utility \n\line 41.4 or to other purchasers; and \n\line 41.5 (2) a proposal for a new facility to satisfy more than ten \n\line 41.6 but not more than 20 megawatts of the electrical generation \n\line 41.7 requirements by a small business-sponsored independent power \n\line 41.8 producer facility to be located within the northern quarter of \n\line 41.9 the state, which means the area located north of Constitutional \n\line 41.10 Route No. 8 as described in section 161.114, subdivision 2, and \n\line 41.11 that utilizes biomass residue wood, sawdust, bark, chipped wood, \n\line 41.12 or brush to generate electricity. A facility described in this \n\line 41.13 clause is not required to utilize biomass complying with the \n\line 41.14 definition in subdivision 1, but must have the capacity required \n\line 41.15 by this clause operational by December 31, {\strike 2002} {\ul 2005}. \n\line 41.16 (f) If a public utility files a contract with the \n\line 41.17 commission for electric energy installed capacity that uses \n\line 41.18 poultry litter as its primary fuel source, the commission must \n\line 41.19 do a preliminary review of the contract to determine if it meets \n\line 41.20 the purchase price criteria provided in paragraph (b), clause \n\line 41.21 (2), of this subdivision. The commission shall perform its \n\line 41.22 review and advise the parties of its determination within 30 \n\line 41.23 days of filing of such a contract by a public utility. A public \n\line 41.24 utility may submit by September 1, 2000, a revised contract to \n\line 41.25 address the commission's preliminary determination. \n\line 41.26 (g) The commission shall finally approve, modify, or \n\line 41.27 disapprove no later than July 1, 2001, all contracts submitted \n\line 41.28 by a public utility as of September 1, 2000, to meet the mandate \n\line 41.29 set forth in this subdivision. \n\line 41.30 (h) If a public utility subject to this section exercises \n\line 41.31 an option to increase the generating capacity of a project in a \n\line 41.32 contract approved by the commission prior to April 25, 2000, to \n\line 41.33 satisfy the mandate in this subdivision, the public utility must \n\line 41.34 notify the commission by September 1, 2000, that it has \n\line 41.35 exercised the option and include in the notice the amount of \n\line 41.36 additional megawatts to be generated under the option \n\line 42.1 exercised. Any review by the commission of the project after \n\line 42.2 exercise of such an option shall be based on the same criteria \n\line 42.3 used to review the existing contract. \n\line 42.4 (i) A facility specified in this subdivision qualifies for \n\line 42.5 exemption from property taxation under section 272.02, \n\line 42.6 subdivision 43. \n\line 42.7 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 42.8 {\ul following final enactment.} \n\line 42.9 Sec. 2. Minnesota Statutes 2002, section 270B.12, is \n\line 42.10 amended by adding a subdivision to read: \n\line 42.11 {\ul Subd. 13.} [COUNTY ASSESSORS; CLASS 1B HOMESTEADS.] {\ul The} \n\line 42.12 {\ul commissioner may disclose to a county assessor, and to the} \n\line 42.13 {\ul assessor's designated agents or employees, a listing of parcels} \n\line 42.14 {\ul of property qualifying for the class 1b property tax} \n\line 42.15 {\ul classification under section 273.13, subdivision 22.} \n\line 42.16 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 42.17 {\ul following final enactment.} \n\line 42.18 Sec. 3. Minnesota Statutes 2002, section 272.02, \n\line 42.19 subdivision 26, is amended to read: \n\line 42.20 Subd. 26. [LOW-INCOME HOUSING.] A structure that is \n\line 42.21 situated on real property is exempt if it is used for: \n\line 42.22 (i) housing for the elderly or for low- and moderate-income \n\line 42.23 families as defined in Title II of the National Housing Act, as \n\line 42.24 amended through December 31, 1990, and funded by a direct \n\line 42.25 federal loan or federally insured loan made pursuant to Title II \n\line 42.26 of the act; or \n\line 42.27 (ii) housing lower income families or elderly or \n\line 42.28 handicapped persons, as defined in Section 8 of the United \n\line 42.29 States Housing Act of 1937, as amended. \n\line 42.30 In order for a structure to be exempt under item (i) or \n\line 42.31 (ii), it must also meet each of the following criteria: \n\line 42.32 (A) is owned by an entity which is operated as a nonprofit \n\line 42.33 corporation organized under chapter 317A; \n\line 42.34 (B) is owned by an entity which has not entered into a \n\line 42.35 housing assistance payments contract under Section 8 of the \n\line 42.36 United States Housing Act of 1937, or, if the entity which owns \n\line 43.1 the structure has entered into a housing assistance payments \n\line 43.2 contract under Section 8 of the United States Housing Act of \n\line 43.3 1937, the contract provides assistance for less than 90 percent \n\line 43.4 of the dwelling units in the structure, excluding dwelling units \n\line 43.5 intended for management or maintenance personnel; \n\line 43.6 (C) operates an on-site congregate dining program in which \n\line 43.7 participation by residents is mandatory, and provides assisted \n\line 43.8 living or similar social and physical support services for \n\line 43.9 residents; and \n\line 43.10 (D){\ul (1)} was not assessed and did not pay tax under chapter \n\line 43.11 273 prior to the 1991 levy, while meeting the other conditions \n\line 43.12 of this subdivision{\ul ; or} \n\line 43.13 {\ul (2) is physically attached to a church exempt from taxation} \n\line 43.14 {\ul under subdivision 6, and not less than 30 percent of the units} \n\line 43.15 {\ul therein are occupied by individuals or families whose annual} \n\line 43.16 {\ul income does not exceed 50 percent of the median family income,} \n\line 43.17 {\ul as most recently established by the United States Department of} \n\line 43.18 {\ul Housing and Urban Development for the applicable standard} \n\line 43.19 {\ul metropolitan statistical area, adjusted for family size}. \n\line 43.20 An exemption under this subdivision remains in effect for \n\line 43.21 taxes levied in each year or partial year of the term of its \n\line 43.22 permanent financing. \n\line 43.23 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 43.24 {\ul following final enactment.} \n\line 43.25 Sec. 4. Minnesota Statutes 2002, section 272.02, \n\line 43.26 subdivision 31, is amended to read: \n\line 43.27 Subd. 31. [BUSINESS INCUBATOR PROPERTY.] Property owned by \n\line 43.28 a nonprofit charitable organization that qualifies for tax \n\line 43.29 exemption under section 501(c)(3) of the Internal Revenue Code \n\line 43.30 of 1986, as amended through December 31, 1997, that is intended \n\line 43.31 to be used as a business incubator in a high-unemployment \n\line 43.32 county, is exempt. As used in this subdivision, a "business \n\line 43.33 incubator" is a facility used for the development of nonretail \n\line 43.34 businesses, offering access to equipment, space, services, and \n\line 43.35 advice to the tenant businesses, for the purpose of encouraging \n\line 43.36 economic development, diversification, and job creation in the \n\line 44.1 area served by the organization, and "high-unemployment county" \n\line 44.2 is a county that had an average annual unemployment rate of 7.9 \n\line 44.3 percent or greater in 1997. Property that qualifies for the \n\line 44.4 exemption under this subdivision is limited to no more than two \n\line 44.5 contiguous parcels and structures that do not exceed in the \n\line 44.6 aggregate 40,000 square feet. This exemption expires after \n\line 44.7 taxes payable in {\strike 2005} {\ul 2011}. \n\line 44.8 Sec. 5. Minnesota Statutes 2002, section 272.02, \n\line 44.9 subdivision 47, is amended to read: \n\line 44.10 Subd. 47. [POULTRY LITTER BIOMASS GENERATION FACILITY; \n\line 44.11 PERSONAL PROPERTY.] Notwithstanding subdivision 9, clause (a), \n\line 44.12 attached machinery and other personal property which is part of \n\line 44.13 an electrical generating facility that meets the requirements of \n\line 44.14 this subdivision is exempt. At the time of construction, the \n\line 44.15 facility must: \n\line 44.16 (1) be designed to utilize poultry litter as a primary fuel \n\line 44.17 source; and \n\line 44.18 (2) be constructed for the purpose of generating power at \n\line 44.19 the facility that will be sold pursuant to a contract approved \n\line 44.20 by the public utilities commission in accordance with the \n\line 44.21 biomass mandate imposed under section 216B.2424. \n\line 44.22 Construction of the facility must be commenced after \n\line 44.23 January 1, {\strike 2000} {\ul 2003}, and before December 31, {\strike 2002} {\ul 2003}. \n\line 44.24 Property eligible for this exemption does not include electric \n\line 44.25 transmission lines and interconnections or gas pipelines and \n\line 44.26 interconnections appurtenant to the property or the facility. \n\line 44.27 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 44.28 {\ul levied in 2004, payable in 2005, and thereafter.} \n\line 44.29 Sec. 6. Minnesota Statutes 2002, section 272.02, \n\line 44.30 subdivision 53, is amended to read: \n\line 44.31 Subd. 53. [ELECTRIC GENERATION FACILITY; PERSONAL \n\line 44.32 PROPERTY.] Notwithstanding subdivision 9, clause (a), attached \n\line 44.33 machinery and other personal property which is part of a 3.2 \n\line 44.34 megawatt run-of-the-river hydroelectric generation facility and \n\line 44.35 that meets the requirements of this subdivision is exempt. At \n\line 44.36 the time of construction, the facility must: \n\line 45.1 (1) utilize two turbine generators at a dam site existing \n\line 45.2 on March 31, 1994; \n\line 45.3 (2) be located on publicly owned land and within 1,500 feet \n\line 45.4 of a 13.8 kilovolt distribution substation; and \n\line 45.5 (3) be eligible to receive a renewable energy production \n\line 45.6 incentive payment under section 216C.41. \n\line 45.7 Construction of the facility must be commenced after \n\line 45.8 January 1, 2002, and before January 1, {\strike 2004} {\ul 2005}. Property \n\line 45.9 eligible for this exemption does not include electric \n\line 45.10 transmission lines and interconnections or gas pipelines and \n\line 45.11 interconnections appurtenant to the property or the facility. \n\line 45.12 Sec. 7. Minnesota Statutes 2002, section 272.02, is \n\line 45.13 amended by adding a subdivision to read: \n\line 45.14 {\ul Subd. 56.} [ELECTRIC GENERATION FACILITY PERSONAL \n\line 45.15 PROPERTY.] {\ul (a) Notwithstanding subdivision 9, clause (a),} \n\line 45.16 {\ul attached machinery and other personal property which is part of} \n\line 45.17 {\ul a combined-cycle combustion-turbine electric generation facility} \n\line 45.18 {\ul that exceeds 150 megawatts of installed capacity and that meets} \n\line 45.19 {\ul the requirements of this subdivision is exempt. At the time of} \n\line 45.20 {\ul construction, the facility must:} \n\line 45.21 {\ul (1) utilize natural gas as a primary fuel;} \n\line 45.22 {\ul (2) be owned by an electric generation and transmission} \n\line 45.23 {\ul cooperative;} \n\line 45.24 {\ul (3) be located within ten miles of parallel existing} \n\line 45.25 {\ul 24-inch and 30-inch natural gas pipelines and a 345-kilovolt} \n\line 45.26 {\ul high-voltage electric transmission line; and} \n\line 45.27 {\ul (4) be designed to provide intermediate energy and} \n\line 45.28 {\ul ancillary services, and have received a certificate of need} \n\line 45.29 {\ul under section 216B.243, demonstrating demand for its capacity.} \n\line 45.30 {\ul (b) Construction of the facility must be commenced after} \n\line 45.31 {\ul January 1, 2004, and before January 1, 2009. Property eligible} \n\line 45.32 {\ul for this exemption does not include electric transmission lines} \n\line 45.33 {\ul and interconnections or gas pipelines and interconnections} \n\line 45.34 {\ul appurtenant to the property or the facility.} \n\line 45.35 {\ul (c) The exemption under this section will take effect only} \n\line 45.36 {\ul if the owner of the facility enters into agreements with the} \n\line 46.1 {\ul governing bodies of the county and the city or town in which the} \n\line 46.2 {\ul facility is located. The agreements may include a requirement} \n\line 46.3 {\ul that the facility must pay a host fee to compensate the county} \n\line 46.4 {\ul and city or town for hosting the facility.} \n\line 46.5 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 46.6 {\ul levied in 2005, payable in 2006, and thereafter.} \n\line 46.7 Sec. 8. Minnesota Statutes 2002, section 272.02, is \n\line 46.8 amended by adding a subdivision to read: \n\line 46.9 {\ul Subd. 57.} [ELECTRIC GENERATION FACILITY PERSONAL \n\line 46.10 PROPERTY.] {\ul (a) Notwithstanding subdivision 9, clause (a),} \n\line 46.11 {\ul attached machinery and other personal property which is part of} \n\line 46.12 {\ul a combined-cycle combustion-turbine electric generation facility} \n\line 46.13 {\ul that exceeds 550 megawatts of installed capacity and that meets} \n\line 46.14 {\ul the requirements of this subdivision is exempt. At the time of} \n\line 46.15 {\ul construction, the facility must:} \n\line 46.16 {\ul (1) be designed to utilize natural gas as a primary fuel;} \n\line 46.17 {\ul (2) not be owned by a public utility as defined in section} \n\line 46.18 {\ul 216B.02, subdivision 4;} \n\line 46.19 {\ul (3) be located within five miles of an existing natural gas} \n\line 46.20 {\ul pipeline and within four miles of an existing electrical} \n\line 46.21 {\ul transmission substation; and} \n\line 46.22 {\ul (4) be designed to provide energy and ancillary services} \n\line 46.23 {\ul and have received a certificate of need under section 216B.243.} \n\line 46.24 {\ul (b) Construction of the facility must be commenced after} \n\line 46.25 {\ul January 1, 2004, and before January 1, 2007. Property eligible} \n\line 46.26 {\ul for this exemption does not include electric transmission lines} \n\line 46.27 {\ul and interconnections or gas pipelines and interconnections} \n\line 46.28 {\ul appurtenant to the property or the facility.} \n\line 46.29 [EFFECTIVE DATE.] {\ul This section is effective for assessment} \n\line 46.30 {\ul year 2005, taxes payable in 2006, and thereafter.} \n\line 46.31 Sec. 9. Minnesota Statutes 2002, section 273.01, is \n\line 46.32 amended to read: \n\line 46.33 273.01 [LISTING AND ASSESSMENT, TIME.] \n\line 46.34 All real property subject to taxation shall be listed and \n\line 46.35 at least {\strike one-fourth} {\ul one-fifth} of the parcels listed shall be \n\line 46.36 appraised each year with reference to their value on January 2 \n\line 47.1 preceding the assessment so that each parcel shall be \n\line 47.2 reappraised at maximum intervals of {\strike four} {\ul five} years. All real \n\line 47.3 property becoming taxable in any year shall be listed with \n\line 47.4 reference to its value on January 2 of that year. Except as \n\line 47.5 provided in this section and section 274.01, subdivision 1, all \n\line 47.6 real property assessments shall be completed two weeks prior to \n\line 47.7 the date scheduled for the local board of review or \n\line 47.8 equalization. No changes in valuation or classification which \n\line 47.9 are intended to correct errors in judgment by the county \n\line 47.10 assessor may be made by the county assessor after the board of \n\line 47.11 review or the county board of equalization has adjourned; \n\line 47.12 however, corrections of errors that are merely clerical in \n\line 47.13 nature or changes that extend homestead treatment to property \n\line 47.14 are permitted after adjournment until the tax extension date for \n\line 47.15 that assessment year. Any changes made by the assessor after \n\line 47.16 adjournment must be fully documented and maintained in a file in \n\line 47.17 the assessor's office and shall be available for review by any \n\line 47.18 person. A copy of any changes made during this period shall be \n\line 47.19 sent to the county board no later than December 31 of the \n\line 47.20 assessment year. In the event a valuation and classification is \n\line 47.21 not placed on any real property by the dates scheduled for the \n\line 47.22 local board of review or equalization the valuation and \n\line 47.23 classification determined in the preceding assessment shall be \n\line 47.24 continued in effect and the provisions of section 273.13 shall, \n\line 47.25 in such case, not be applicable, except with respect to real \n\line 47.26 estate which has been constructed since the previous \n\line 47.27 assessment. Real property containing iron ore, the fee to which \n\line 47.28 is owned by the state of Minnesota, shall, if leased by the \n\line 47.29 state after January 2 in any year, be subject to assessment for \n\line 47.30 that year on the value of any iron ore removed under said lease \n\line 47.31 prior to January 2 of the following year. Personal property \n\line 47.32 subject to taxation shall be listed and assessed annually with \n\line 47.33 reference to its value on January 2; and, if acquired on that \n\line 47.34 day, shall be listed by or for the person acquiring it. \n\line 47.35 [EFFECTIVE DATE.] {\ul This section is effective for assessments} \n\line 47.36 {\ul on or after January 2, 2004.} \n\line 48.1 Sec. 10. Minnesota Statutes 2002, section 273.08, is \n\line 48.2 amended to read: \n\line 48.3 273.08 [ASSESSOR'S DUTIES.] \n\line 48.4 The assessor shall actually view, and determine the market \n\line 48.5 value of each tract or lot of real property listed for taxation, \n\line 48.6 including the value of all improvements and structures thereon, \n\line 48.7 at maximum intervals of {\strike four} {\ul five} years and shall enter the \n\line 48.8 value opposite each description. \n\line 48.9 [EFFECTIVE DATE.] {\ul This section is effective for assessments} \n\line 48.10 {\ul on or after January 2, 2004.} \n\line 48.11 Sec. 11. Minnesota Statutes 2002, section 273.11, is \n\line 48.12 amended by adding a subdivision to read: \n\line 48.13 {\ul Subd. 21.} [VALUATION EXCLUSION FOR LEAD PAINT \n\line 48.14 REMOVAL.] {\ul Owners of property classified as class 1a, 1b, 1c, 2a,} \n\line 48.15 {\ul 4b, or 4bb under section 273.13 may apply for a valuation} \n\line 48.16 {\ul exclusion under this subdivision, provided that the property is} \n\line 48.17 {\ul located in a city which has authorized valuation exclusions} \n\line 48.18 {\ul under this subdivision. A city which authorizes valuation} \n\line 48.19 {\ul exclusions under this subdivision must establish guidelines for} \n\line 48.20 {\ul qualifying lead paint removal projects and must designate an} \n\line 48.21 {\ul agency within the city to issue certificates of completion of} \n\line 48.22 {\ul qualifying projects.} \n\line 48.23 {\ul The property owner must obtain a certificate from the city} \n\line 48.24 {\ul stating that the project has been completed and the cost} \n\line 48.25 {\ul incurred by the owner in completing the project. Only projects} \n\line 48.26 {\ul originating after April 1, 2003, may qualify for exclusion under} \n\line 48.27 {\ul this subdivision. The property owner shall apply for a} \n\line 48.28 {\ul valuation exclusion to the assessor on a form prescribed by the} \n\line 48.29 {\ul assessor.} \n\line 48.30 {\ul A qualifying property is eligible for a valuation exclusion} \n\line 48.31 {\ul equal to 50 percent of the actual costs incurred, to a maximum} \n\line 48.32 {\ul exclusion of $10,000, for a period of five years. The valuation} \n\line 48.33 {\ul exclusion shall terminate upon the sale of the property. If a} \n\line 48.34 {\ul property owner applies for exclusion under this subdivision} \n\line 48.35 {\ul between January 1 and June 30 of any year, the exclusion shall} \n\line 48.36 {\ul first apply for taxes payable in the following year. If a} \n\line 49.1 {\ul property owner applies for exclusion under this subdivision} \n\line 49.2 {\ul between July 1 and December 31 of any year, the exclusion shall} \n\line 49.3 {\ul first apply for taxes payable in the second following year.} \n\line 49.4 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 49.5 {\ul payable in 2004 and subsequent years.} \n\line 49.6 Sec. 12. Minnesota Statutes 2002, section 273.11, is \n\line 49.7 amended by adding a subdivision to read: \n\line 49.8 {\ul Subd. 22.} [VALUATION OF CLASS 4D CERTIFIED PROPERTY.] {\ul In} \n\line 49.9 {\ul determining the market value of class 4d rental property} \n\line 49.10 {\ul certified under section 462A.071, the assessor shall reduce the} \n\line 49.11 {\ul value of the property by its restricted use value. "Restricted} \n\line 49.12 {\ul use value" is the amount of market value reduction that results} \n\line 49.13 {\ul from the restrictions on uses that qualify the property for} \n\line 49.14 {\ul certification as class 4d under section 273.13, subdivision 25,} \n\line 49.15 {\ul paragraph (e). The assessor shall determine the restricted use} \n\line 49.16 {\ul value of the property using guidelines set by the commissioner} \n\line 49.17 {\ul of revenue.} \n\line 49.18 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 49.19 {\ul levied in 2003, payable in 2004, and thereafter.} \n\line 49.20 Sec. 13. Minnesota Statutes 2002, section 273.11, is \n\line 49.21 amended by adding a subdivision to read: \n\line 49.22 {\ul Subd. 23.} [VALUATION EXCLUSION FOR SEWAGE TREATMENT SYSTEM \n\line 49.23 IMPROVEMENTS.] {\ul Owners of property classified as class 1a, 1b,} \n\line 49.24 {\ul 1c, 2a, 4b, 4bb, or noncommercial 4c under section 273.13 may} \n\line 49.25 {\ul apply for a valuation exclusion under this subdivision, provided} \n\line 49.26 {\ul that the following conditions are met:} \n\line 49.27 {\ul (1) a notice of noncompliance has been issued by a licensed} \n\line 49.28 {\ul compliance inspector with regard to the individual sewage} \n\line 49.29 {\ul treatment system serving the property under section 115.55,} \n\line 49.30 {\ul subdivision 5b;} \n\line 49.31 {\ul (2) the owner of the property furnishes documentation to} \n\line 49.32 {\ul the satisfaction of the assessor that the property's individual} \n\line 49.33 {\ul sewage treatment system has been replaced or refurbished between} \n\line 49.34 {\ul January 1, 2003, and December 31, 2007; and} \n\line 49.35 {\ul (3) a certificate of compliance has been issued for the new} \n\line 49.36 {\ul or refurbished system under section 115.55, subdivision 5.} \n\line 50.1 {\ul Application shall be made to the assessor on a form} \n\line 50.2 {\ul prescribed by the assessor. Property meeting the requirements} \n\line 50.3 {\ul above shall be eligible for a valuation exclusion equal to 50} \n\line 50.4 {\ul percent of the actual costs incurred, to a maximum exclusion of} \n\line 50.5 {\ul $7,500, for a period of five years. The valuation exclusion} \n\line 50.6 {\ul shall terminate upon the sale of the property. If a property} \n\line 50.7 {\ul owner applies for exclusion under this subdivision between} \n\line 50.8 {\ul January 1 and June 30 of any year, the exclusion shall first} \n\line 50.9 {\ul apply for taxes payable in the following year. If a property} \n\line 50.10 {\ul owner applies for exclusion under this subdivision between July} \n\line 50.11 {\ul 1 and December 31 of any year, the exclusion shall first apply} \n\line 50.12 {\ul for taxes payable in the second following year.} \n\line 50.13 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 50.14 {\ul payable in 2004 and subsequent years.} \n\line 50.15 Sec. 14. [273.1115] [HOMESTEAD RESORTS; VALUATION AND \n\line 50.16 DEFERMENT.] \n\line 50.17 {\ul Subdivision 1.} [REQUIREMENTS.] {\ul Real property qualifying} \n\line 50.18 {\ul for classification as class 1c under section 273.13, subdivision} \n\line 50.19 {\ul 22, paragraph (c), is entitled to valuation and tax deferment} \n\line 50.20 {\ul under this section, provided that if part of a resort is not} \n\line 50.21 {\ul classified as class 1c, only that portion of the value of the} \n\line 50.22 {\ul property that is classified as class 1c property qualifies under} \n\line 50.23 {\ul this section.} \n\line 50.24 {\ul Subd. 2.} [DETERMINATION OF VALUE.] {\ul Upon timely application} \n\line 50.25 {\ul by the owner, as provided in subdivision 4, the value of real} \n\line 50.26 {\ul property described in subdivision 1 must be determined by the} \n\line 50.27 {\ul assessor solely with reference to its classification value as} \n\line 50.28 {\ul class 1c property, notwithstanding sections 272.03, subdivision} \n\line 50.29 {\ul 8, and 273.11. The owner must furnish information on the income} \n\line 50.30 {\ul generated by the property and other information required by the} \n\line 50.31 {\ul assessor to determine the value of the property. The assessor} \n\line 50.32 {\ul shall not consider any added values resulting from other factors.}\n\line 50.33 {\ul Subd. 3.} [SEPARATE DETERMINATION OF MARKET VALUE AND TAX.] \n\line 50.34 {\ul The assessor shall, however, make a separate determination of} \n\line 50.35 {\ul the market value of the real estate. The assessor shall record} \n\line 50.36 {\ul on the property assessment records the tax based upon the} \n\line 51.1 {\ul appropriate local tax rate applicable to the property in the} \n\line 51.2 {\ul taxing district.} \n\line 51.3 {\ul Subd. 4.} [APPLICATION.] {\ul Application for deferment of taxes} \n\line 51.4 {\ul and assessment under this section must be filed by May 1 of the} \n\line 51.5 {\ul year prior to the year in which the taxes are payable. The} \n\line 51.6 {\ul application must be filed with the assessor of the taxing} \n\line 51.7 {\ul district in which the real property is located on a form} \n\line 51.8 {\ul prescribed by the commissioner of revenue. The assessor may} \n\line 51.9 {\ul require proof by affidavit or otherwise that the property} \n\line 51.10 {\ul qualifies under subdivision 1. An application approved by the} \n\line 51.11 {\ul assessor continues in effect for subsequent years until the} \n\line 51.12 {\ul property no longer qualifies under subdivision 1.} \n\line 51.13 {\ul Subd. 5.} [ADDITIONAL TAXES.] {\ul When real property valued and} \n\line 51.14 {\ul assessed under this section no longer qualifies under} \n\line 51.15 {\ul subdivision 1, the portion no longer qualifying is subject to} \n\line 51.16 {\ul additional taxes, in the amount equal to the difference between} \n\line 51.17 {\ul the taxes determined in accordance with subdivision 2, and the} \n\line 51.18 {\ul amount determined under subdivision 3, provided, however, that} \n\line 51.19 {\ul the amount determined under subdivision 3 must not be greater} \n\line 51.20 {\ul than it would have been had the actual bona fide sale price of} \n\line 51.21 {\ul the real property at an arms length transaction been used in} \n\line 51.22 {\ul lieu of the market value determined under subdivision 3. The} \n\line 51.23 {\ul additional taxes must be extended against the property on the} \n\line 51.24 {\ul tax list for the current year, except that no interest or} \n\line 51.25 {\ul penalties may be levied on the additional taxes if timely paid,} \n\line 51.26 {\ul and except that the additional taxes must only be levied with} \n\line 51.27 {\ul respect to the last seven years that the property has been} \n\line 51.28 {\ul valued and assessed under this section.} \n\line 51.29 {\ul Subd. 6.} [LIEN.] {\ul The tax imposed by this section is a lien} \n\line 51.30 {\ul on the property assessed to the same extent and for the same} \n\line 51.31 {\ul duration as other taxes imposed on property within this state.} \n\line 51.32 {\ul The tax must be annually extended by the county auditor and when} \n\line 51.33 {\ul payable must be collected and distributed in the manner provided} \n\line 51.34 {\ul by law for the collection and distribution of other property} \n\line 51.35 {\ul taxes.} \n\line 51.36 {\ul Subd. 7.} [SPECIAL LOCAL ASSESSMENTS.] {\ul The payment of} \n\line 52.1 {\ul special local assessments levied after June 30, 2003, for} \n\line 52.2 {\ul improvements made to any real property described in subdivision} \n\line 52.3 {\ul 2, together with the interest thereon must, on timely} \n\line 52.4 {\ul application under subdivision 4, be deferred as long as the} \n\line 52.5 {\ul property qualifies under subdivision 1. If special assessments} \n\line 52.6 {\ul against the property have been deferred under this subdivision,} \n\line 52.7 {\ul the governmental unit shall file with the county recorder in the} \n\line 52.8 {\ul county in which the property is located a certificate containing} \n\line 52.9 {\ul the legal description of the affected property and of the amount} \n\line 52.10 {\ul deferred. When the property no longer qualifies under} \n\line 52.11 {\ul subdivision 1, all deferred special assessments plus interest} \n\line 52.12 {\ul are payable in equal installments spread over the time remaining} \n\line 52.13 {\ul until the last maturity date of the bonds issued to finance the} \n\line 52.14 {\ul improvement for which the assessments were levied. If the bonds} \n\line 52.15 {\ul have matured, the deferred special assessments plus interest are} \n\line 52.16 {\ul payable within 90 days. The provisions of section 429.061,} \n\line 52.17 {\ul subdivision 2, apply to the collection of these installments.} \n\line 52.18 {\ul Penalty must not be levied on the special assessments if timely} \n\line 52.19 {\ul paid.} \n\line 52.20 {\ul Subd. 8.} [CONTINUATION OF TAX TREATMENT UPON SALE.] {\ul When} \n\line 52.21 {\ul real property qualifying under subdivision 1 is sold, no} \n\line 52.22 {\ul additional taxes or deferred special assessments plus interest} \n\line 52.23 {\ul may be extended against the property if:} \n\line 52.24 {\ul (1) the property continues to qualify pursuant to} \n\line 52.25 {\ul subdivision 1; and} \n\line 52.26 {\ul (2) the new owner files an application for continued} \n\line 52.27 {\ul deferment within 30 days after the sale.} \n\line 52.28 {\ul Subd. 9.} [APPLICABILITY OF SPECIAL ASSESSMENT PROVISIONS.] \n\line 52.29 {\ul This section applies to special local assessments levied after} \n\line 52.30 {\ul June 30, 2003, and payable in the years thereafter, but shall} \n\line 52.31 {\ul not apply to any special assessments levied at any time by a} \n\line 52.32 {\ul county or district court under the provisions of chapter 116A.} \n\line 52.33 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 52.34 {\ul levied in 2003, payable in 2004, and thereafter. For} \n\line 52.35 {\ul applications for taxes payable in 2004 only, the application} \n\line 52.36 {\ul deadline in subdivision 4 is extended to August 1, 2003.} \n\line 53.1 Sec. 15. Minnesota Statutes 2002, section 273.13, \n\line 53.2 subdivision 22, is amended to read: \n\line 53.3 Subd. 22. [CLASS 1.] (a) Except as provided in subdivision \n\line 53.4 23 and in paragraphs (b) and (c), real estate which is \n\line 53.5 residential and used for homestead purposes is class 1a. In the \n\line 53.6 case of a duplex or triplex in which one of the units is used \n\line 53.7 for homestead purposes, the entire property is deemed to be used \n\line 53.8 for homestead purposes. The market value of class 1a property \n\line 53.9 must be determined based upon the value of the house, garage, \n\line 53.10 and land. \n\line 53.11 The first $500,000 of market value of class 1a property has \n\line 53.12 a net class rate of one percent of its market value; and the \n\line 53.13 market value of class 1a property that exceeds $500,000 has a \n\line 53.14 class rate of 1.25 percent of its market value. \n\line 53.15 (b) Class 1b property includes homestead real estate or \n\line 53.16 homestead manufactured homes used for the purposes of a \n\line 53.17 homestead by \n\line 53.18 (1) any {\strike blind} person {\ul who is blind as defined in section} \n\line 53.19 {\ul 256D.35}, or the blind person and the blind person's spouse; or \n\line 53.20 (2) any person, hereinafter referred to as "veteran," who: \n\line 53.21 (i) served in the active military or naval service of the \n\line 53.22 United States; and \n\line 53.23 (ii) is entitled to compensation under the laws and \n\line 53.24 regulations of the United States for permanent and total \n\line 53.25 service-connected disability due to the loss, or loss of use, by \n\line 53.26 reason of amputation, ankylosis, progressive muscular \n\line 53.27 dystrophies, or paralysis, of both lower extremities, such as to \n\line 53.28 preclude motion without the aid of braces, crutches, canes, or a \n\line 53.29 wheelchair; and \n\line 53.30 (iii) has acquired a special housing unit with special \n\line 53.31 fixtures or movable facilities made necessary by the nature of \n\line 53.32 the veteran's disability, or the surviving spouse of the \n\line 53.33 deceased veteran for as long as the surviving spouse retains the \n\line 53.34 special housing unit as a homestead; or \n\line 53.35 (3) any person who{\strike :} \n\line 53.36 {\strike (i)} is permanently and totally disabled {\strike and}{\ul ; or} \n\line 54.1 {\strike (ii) receives 90 percent or more of total household income,} \n\line 54.2 {\strike as defined in section 290A.03, subdivision 5, from} \n\line 54.3 {\strike (A) aid from any state as a result of that disability; or} \n\line 54.4 {\strike (B) supplemental security income for the disabled; or} \n\line 54.5 {\strike (C) workers' compensation based on a finding of total and} \n\line 54.6 {\strike permanent disability; or} \n\line 54.7 {\strike (D) social security disability, including the amount of a} \n\line 54.8 {\strike disability insurance benefit which is converted to an old age} \n\line 54.9 {\strike insurance benefit and any subsequent cost of living increases;} \n\line 54.10 {\strike or} \n\line 54.11 {\strike (E) aid under the federal Railroad Retirement Act of 1937,} \n\line 54.12 {\strike United States Code Annotated, title 45, section 228b(a)5; or} \n\line 54.13 {\strike (F) a pension from any local government retirement fund} \n\line 54.14 {\strike located in the state of Minnesota as a result of that} \n\line 54.15 {\strike disability; or} \n\line 54.16 {\strike (G) pension, annuity, or other income paid as a result of} \n\line 54.17 {\strike that disability from a private pension or disability plan,} \n\line 54.18 {\strike including employer, employee, union, and insurance plans and} \n\line 54.19 {\strike (iii) has household income as defined in section 290A.03,} \n\line 54.20 {\strike subdivision 5, of $50,000 or less; or} \n\line 54.21 (4) any person who is permanently and totally disabled and \n\line 54.22 whose household income as defined in section 290A.03, \n\line 54.23 subdivision 5, is 275 percent or less of the federal poverty \n\line 54.24 level. \n\line 54.25 Property is classified and assessed under clause (4) only \n\line 54.26 if the government agency or income-providing source certifies, \n\line 54.27 upon the request of the homestead occupant, that the homestead \n\line 54.28 occupant satisfies the disability requirements of this paragraph.\n\line 54.29 Property is classified and assessed pursuant to clause (1) \n\line 54.30 only if the commissioner of {\strike economic security} {\ul revenue} certifies \n\line 54.31 to the assessor that the homestead occupant satisfies the \n\line 54.32 requirements of this paragraph. \n\line 54.33 Permanently and totally disabled for the purpose of this \n\line 54.34 subdivision means a condition which is permanent in nature and \n\line 54.35 totally incapacitates the person from working at an occupation \n\line 54.36 which brings the person an income. The first $32,000 market \n\line 55.1 value of class 1b property has a net class rate of .45 percent \n\line 55.2 of its market value. The remaining market value of class 1b \n\line 55.3 property has a class rate using the rates for class 1a or class \n\line 55.4 2a property, whichever is appropriate, of similar market value. \n\line 55.5 (c) Class 1c property is commercial use real property that \n\line 55.6 abuts a lakeshore line and is devoted to temporary and seasonal \n\line 55.7 residential occupancy for recreational purposes but not devoted \n\line 55.8 to commercial purposes for more than 250 days in the year \n\line 55.9 preceding the year of assessment, and that includes a portion \n\line 55.10 used as a homestead by the owner, which includes a dwelling \n\line 55.11 occupied as a homestead by a shareholder of a corporation that \n\line 55.12 owns the resort {\strike or}{\ul ,} a partner in a partnership that owns the \n\line 55.13 resort, {\ul or a member of a limited liability company that owns the} \n\line 55.14 {\ul resort} even if the title to the homestead is held by the \n\line 55.15 corporation {\strike or}{\ul ,} partnership{\ul , or limited liability company}. For \n\line 55.16 purposes of this clause, property is devoted to a commercial \n\line 55.17 purpose on a specific day if any portion of the property, \n\line 55.18 excluding the portion used exclusively as a homestead, is used \n\line 55.19 for residential occupancy and a fee is charged for residential \n\line 55.20 occupancy. The first $500,000 of market value of class 1c \n\line 55.21 property has a class rate of one percent, and the remaining \n\line 55.22 market value of class 1c property has a class rate of one \n\line 55.23 percent, with the following limitation: the area of the \n\line 55.24 property must not exceed 100 feet of lakeshore footage for each \n\line 55.25 cabin or campsite located on the property up to a total of 800 \n\line 55.26 feet and 500 feet in depth, measured away from the lakeshore. \n\line 55.27 If any portion of the class 1c resort property is classified as \n\line 55.28 class 4c under subdivision 25, the entire property must meet the \n\line 55.29 requirements of subdivision 25, paragraph (d), clause (1), to \n\line 55.30 qualify for class 1c treatment under this paragraph. \n\line 55.31 (d) Class 1d property includes structures that meet all of \n\line 55.32 the following criteria: \n\line 55.33 (1) the structure is located on property that is classified \n\line 55.34 as agricultural property under section 273.13, subdivision 23; \n\line 55.35 (2) the structure is occupied exclusively by seasonal farm \n\line 55.36 workers during the time when they work on that farm, and the \n\line 56.1 occupants are not charged rent for the privilege of occupying \n\line 56.2 the property, provided that use of the structure for storage of \n\line 56.3 farm equipment and produce does not disqualify the property from \n\line 56.4 classification under this paragraph; \n\line 56.5 (3) the structure meets all applicable health and safety \n\line 56.6 requirements for the appropriate season; and \n\line 56.7 (4) the structure is not salable as residential property \n\line 56.8 because it does not comply with local ordinances relating to \n\line 56.9 location in relation to streets or roads. \n\line 56.10 The market value of class 1d property has the same class \n\line 56.11 rates as class 1a property under paragraph (a). \n\line 56.12 [EFFECTIVE DATE.] {\ul This section is effective for property} \n\line 56.13 {\ul taxes levied in 2003, payable in 2004, and thereafter, except} \n\line 56.14 {\ul that the amendments to paragraph (b) are effective for taxes} \n\line 56.15 {\ul payable in 2005 and thereafter.} \n\line 56.16 Sec. 16. Minnesota Statutes 2002, section 273.1315, is \n\line 56.17 amended to read: \n\line 56.18 273.1315 [CERTIFICATION OF 1B PROPERTY.] \n\line 56.19 Any property owner seeking classification and assessment of \n\line 56.20 the owner's homestead as class 1b property pursuant to section \n\line 56.21 273.13, subdivision 22, paragraph (b), {\strike clause (2) or (3),} shall \n\line 56.22 file with the commissioner of revenue {\strike for each assessment year} a \n\line 56.23 1b homestead declaration, on a form prescribed by the \n\line 56.24 commissioner. The declaration shall contain the following \n\line 56.25 information: \n\line 56.26 (a) the information necessary to verify that the property \n\line 56.27 owner or the owner's spouse satisfies the requirements of \n\line 56.28 section 273.13, subdivision 22, paragraph (b), {\strike clause (2) or} \n\line 56.29 {\strike (3),} for 1b classification; {\ul and} \n\line 56.30 (b) {\strike the property owner's household income, as defined in} \n\line 56.31 {\strike section 290A.03, for the previous calendar year; and} \n\line 56.32 {\strike (c)} any additional information prescribed by the \n\line 56.33 commissioner. \n\line 56.34 The declaration {\strike shall} {\ul must} be filed on or before {\strike March} \n\line 56.35 {\ul October} 1 {\strike of each year} to be effective for property taxes \n\line 56.36 payable during the succeeding calendar year. The declaration \n\line 57.1 and any supplementary information received from the property \n\line 57.2 owner pursuant to this section shall be subject to chapter \n\line 57.3 270B. {\ul If approved by the commissioner, the declaration remains} \n\line 57.4 {\ul in effect until the property no longer qualifies under section} \n\line 57.5 {\ul 273.13, subdivision 22, paragraph (b). Failure to notify the} \n\line 57.6 {\ul commissioner within 30 days that the property no longer} \n\line 57.7 {\ul qualifies under that paragraph because of a sale, change in} \n\line 57.8 {\ul occupancy, or change in the status or condition of an occupant} \n\line 57.9 {\ul shall result in the penalty provided in section 273.124,} \n\line 57.10 {\ul subdivision 13, computed on the basis of the class 1b benefits} \n\line 57.11 {\ul for the property, and the property shall lose its current class} \n\line 57.12 {\ul 1b classification.} \n\line 57.13 The commissioner shall provide to the assessor on or before \n\line 57.14 {\strike April} {\ul November} 1 a listing of the parcels of property qualifying \n\line 57.15 for 1b classification. \n\line 57.16 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 57.17 {\ul payable in 2005 and thereafter.} \n\line 57.18 Sec. 17. Minnesota Statutes 2002, section 275.025, \n\line 57.19 subdivision 4, is amended to read: \n\line 57.20 Subd. 4. [APPORTIONMENT AND LEVY OF STATE GENERAL TAX.] \n\line 57.21 The state general tax must be distributed among the counties by \n\line 57.22 applying a uniform rate to each county's commercial-industrial \n\line 57.23 tax capacity and its seasonal recreational tax capacity. Within \n\line 57.24 each county, the tax must be levied by applying a uniform rate \n\line 57.25 against commercial-industrial tax capacity and seasonal \n\line 57.26 recreational tax capacity. By {\strike November 1} {\ul October 1} each year, \n\line 57.27 the commissioner of revenue shall certify the state general levy \n\line 57.28 rate to each county auditor. \n\line 57.29 Sec. 18. Minnesota Statutes 2002, section 275.065, \n\line 57.30 subdivision 1, is amended to read: \n\line 57.31 Subdivision 1. [PROPOSED LEVY.] (a) Notwithstanding any \n\line 57.32 law or charter to the contrary, on or before September {\strike 15} {\ul 5}, \n\line 57.33 each taxing authority, other than a school district, shall adopt \n\line 57.34 a proposed budget and shall certify to the county auditor the \n\line 57.35 proposed or, in the case of a town, the final property tax levy \n\line 57.36 for taxes payable in the following year. \n\line 58.1 (b) On or before September {\strike 30} {\ul 20}, each school district \n\line 58.2 shall certify to the county auditor the proposed property tax \n\line 58.3 levy for taxes payable in the following year. The school \n\line 58.4 district shall certify the proposed levy as: \n\line 58.5 (1) the state determined school levy amount as prescribed \n\line 58.6 under section 126C.13, subdivision 2; \n\line 58.7 (2) voter approved referendum and debt levies; and \n\line 58.8 (3) the sum of the remaining school levies, or the maximum \n\line 58.9 levy limitation certified by the commissioner of children, \n\line 58.10 families, and learning according to section 126C.48, subdivision \n\line 58.11 1, less the amounts levied under clauses (1) and (2). \n\line 58.12 (c) If the board of estimate and taxation or any similar \n\line 58.13 board that establishes maximum tax levies for taxing \n\line 58.14 jurisdictions within a first class city certifies the maximum \n\line 58.15 property tax levies for funds under its jurisdiction by charter \n\line 58.16 to the county auditor by September {\strike 15} {\ul 5}, the city shall be \n\line 58.17 deemed to have certified its levies for those taxing \n\line 58.18 jurisdictions. \n\line 58.19 (d) For purposes of this section, "taxing authority" \n\line 58.20 includes all home rule and statutory cities, towns, counties, \n\line 58.21 school districts, and special taxing districts as defined in \n\line 58.22 section 275.066. Intermediate school districts that levy a tax \n\line 58.23 under chapter 124 or 136D, joint powers boards established under \n\line 58.24 sections 123A.44 to 123A.446, and common school districts No. \n\line 58.25 323, Franconia, and No. 815, Prinsburg, are also special taxing \n\line 58.26 districts for purposes of this section. \n\line 58.27 Sec. 19. Minnesota Statutes 2002, section 275.065, \n\line 58.28 subdivision 1a, is amended to read: \n\line 58.29 Subd. 1a. [OVERLAPPING JURISDICTIONS.] In the case of a \n\line 58.30 taxing authority lying in two or more counties, the home county \n\line 58.31 auditor shall certify the proposed levy and the proposed local \n\line 58.32 tax rate to the other county auditor by September {\strike 20} {\ul 10}. The \n\line 58.33 home county auditor must estimate the levy or rate in preparing \n\line 58.34 the notices required in subdivision 3, if the other county has \n\line 58.35 not certified the appropriate information. If requested by the \n\line 58.36 home county auditor, the other county auditor must furnish an \n\line 59.1 estimate to the home county auditor. \n\line 59.2 Sec. 20. Minnesota Statutes 2002, section 275.065, \n\line 59.3 subdivision 3, is amended to read: \n\line 59.4 Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The \n\line 59.5 county auditor shall prepare and the county treasurer shall \n\line 59.6 deliver after {\strike November 10} {\ul October 17} and on or before {\strike November} \n\line 59.7 {\strike 24} {\ul October 31} each year, by first class mail to each taxpayer at \n\line 59.8 the address listed on the county's current year's assessment \n\line 59.9 roll, a notice of proposed property taxes. {\ul If the information} \n\line 59.10 {\ul necessary to provide these notices is not available by the time} \n\line 59.11 {\ul required to mail the notice by October 31, they must be mailed} \n\line 59.12 {\ul no later than November 24.} \n\line 59.13 {\ul If the county provides access to parcel-specific property} \n\line 59.14 {\ul tax information on its Web site, it may elect to provide the} \n\line 59.15 {\ul information required under this subdivision by that means} \n\line 59.16 {\ul instead of mailing the notices to taxpayers. If the county} \n\line 59.17 {\ul elects to provide the information through the Web site, it must} \n\line 59.18 {\ul provide a notice in its newsletter or by publication in a} \n\line 59.19 {\ul newspaper described in subdivision 5a that any taxpayer may} \n\line 59.20 {\ul contact the county and request a mailed notice, which must be} \n\line 59.21 {\ul mailed within ten days of the receipt of the request. Beginning} \n\line 59.22 {\ul in 2004, information regarding the taxpayer's option to request} \n\line 59.23 {\ul a mailed notice must be included with the property tax statement.}\n\line 59.24 (b) The commissioner of revenue shall prescribe the form of \n\line 59.25 the notice. \n\line 59.26 (c) The notice must inform taxpayers that it contains the \n\line 59.27 amount of property taxes each taxing authority proposes to \n\line 59.28 collect for taxes payable the following year. In the case of a \n\line 59.29 town, or in the case of the state general tax, the final tax \n\line 59.30 amount will be its proposed tax. In the case of taxing \n\line 59.31 authorities required to hold a public meeting under subdivision \n\line 59.32 6, the notice must clearly state that each taxing authority, \n\line 59.33 including regional library districts established under section \n\line 59.34 134.201, and including the metropolitan taxing districts as \n\line 59.35 defined in paragraph (i), but excluding all other special taxing \n\line 59.36 districts and towns, will hold a public meeting to receive \n\line 60.1 public testimony on the proposed budget and proposed or final \n\line 60.2 property tax levy, or, in case of a school district, on the \n\line 60.3 current budget and proposed property tax levy. It must clearly \n\line 60.4 state the time and place of each taxing authority's meeting, a \n\line 60.5 telephone number for the taxing authority that taxpayers may \n\line 60.6 call if they have questions related to the notice, and an \n\line 60.7 address where comments will be received by mail. \n\line 60.8 (d) The notice must state for each parcel: \n\line 60.9 (1) the market value of the property as determined under \n\line 60.10 section 273.11, and used for computing property taxes payable in \n\line 60.11 the following year and for taxes payable in the current year as \n\line 60.12 each appears in the records of the county assessor on {\strike November 1} \n\line 60.13 {\ul October 10} of the current year; and, in the case of residential \n\line 60.14 property, whether the property is classified as homestead or \n\line 60.15 nonhomestead. The notice must clearly inform taxpayers of the \n\line 60.16 years to which the market values apply and that the values are \n\line 60.17 final values; \n\line 60.18 (2) the items listed below, shown separately by county, \n\line 60.19 city or town, and state general tax, net of the residential and \n\line 60.20 agricultural homestead credit under section 273.1384, voter \n\line 60.21 approved school levy, other local school levy, and the sum of \n\line 60.22 the special taxing districts, and as a total of all taxing \n\line 60.23 authorities: \n\line 60.24 (i) the actual tax for taxes payable in the current year; \n\line 60.25 {\strike (ii) the tax change due to spending factors, defined as the} \n\line 60.26 {\strike proposed tax minus the constant spending tax amount;} \n\line 60.27 {\strike (iii) the tax change due to other factors, defined as the} \n\line 60.28 {\strike constant spending tax amount minus the actual current year tax;} \n\line 60.29 and \n\line 60.30 {\strike (iv)} {\ul (ii)} the proposed tax amount. \n\line 60.31 If the county levy under clause (2) includes an amount for \n\line 60.32 a lake improvement district as defined under sections 103B.501 \n\line 60.33 to 103B.581, the amount attributable for that purpose must be \n\line 60.34 separately stated from the remaining county levy amount. \n\line 60.35 In the case of a town or the state general tax, the final \n\line 60.36 tax shall also be its proposed tax unless the town changes its \n\line 61.1 levy at a special town meeting under section 365.52. If a \n\line 61.2 school district has certified under section 126C.17, subdivision \n\line 61.3 9, that a referendum will be held in the school district at the \n\line 61.4 November general election, the county auditor must note next to \n\line 61.5 the school district's proposed amount that a referendum is \n\line 61.6 pending and that, if approved by the voters, the tax amount may \n\line 61.7 be higher than shown on the notice. In the case of the city of \n\line 61.8 Minneapolis, the levy for the Minneapolis library board and the \n\line 61.9 levy for Minneapolis park and recreation shall be listed \n\line 61.10 separately from the remaining amount of the city's levy. In the \n\line 61.11 case of the city of St. Paul, the levy for the St. Paul library \n\line 61.12 agency must be listed separately from the remaining amount of \n\line 61.13 the city's levy. {\ul In the case of Ramsey county, any amount} \n\line 61.14 {\ul levied under section 134.07 must be listed separately from the} \n\line 61.15 {\ul remaining amount of the county's levy.} In the case of a parcel \n\line 61.16 where tax increment or the fiscal disparities areawide tax under \n\line 61.17 chapter 276A or 473F applies, the proposed tax levy on the \n\line 61.18 captured value or the proposed tax levy on the tax capacity \n\line 61.19 subject to the areawide tax must each be stated separately and \n\line 61.20 not included in the sum of the special taxing districts; and \n\line 61.21 (3) the increase or decrease between the total taxes \n\line 61.22 payable in the current year and the total proposed taxes, \n\line 61.23 expressed as a percentage. \n\line 61.24 For purposes of this section, the amount of the tax on \n\line 61.25 homesteads qualifying under the senior citizens' property tax \n\line 61.26 deferral program under chapter 290B is the total amount of \n\line 61.27 property tax before subtraction of the deferred property tax \n\line 61.28 amount. \n\line 61.29 (e) The notice must clearly state that the proposed or \n\line 61.30 final taxes do not include the following: \n\line 61.31 (1) special assessments; \n\line 61.32 (2) levies approved by the voters after the date the \n\line 61.33 proposed taxes are certified, including bond referenda, school \n\line 61.34 district levy referenda, and levy limit increase referenda; \n\line 61.35 (3) amounts necessary to pay cleanup or other costs due to \n\line 61.36 a natural disaster occurring after the date the proposed taxes \n\line 62.1 are certified; \n\line 62.2 (4) amounts necessary to pay tort judgments against the \n\line 62.3 taxing authority that become final after the date the proposed \n\line 62.4 taxes are certified; and \n\line 62.5 (5) the contamination tax imposed on properties which \n\line 62.6 received market value reductions for contamination. \n\line 62.7 (f) Except as provided in subdivision 7, failure of the \n\line 62.8 county auditor to prepare or the county treasurer to deliver the \n\line 62.9 notice as required in this section does not invalidate the \n\line 62.10 proposed or final tax levy or the taxes payable pursuant to the \n\line 62.11 tax levy. \n\line 62.12 (g) If the notice the taxpayer receives under this section \n\line 62.13 lists the property as nonhomestead, and satisfactory \n\line 62.14 documentation is provided to the county assessor by the \n\line 62.15 applicable deadline, and the property qualifies for the \n\line 62.16 homestead classification in that assessment year, the assessor \n\line 62.17 shall reclassify the property to homestead for taxes payable in \n\line 62.18 the following year. \n\line 62.19 (h) In the case of class 4 residential property used as a \n\line 62.20 residence for lease or rental periods of 30 days or more, the \n\line 62.21 taxpayer must either: \n\line 62.22 (1) mail or deliver a copy of the notice of proposed \n\line 62.23 property taxes to each tenant, renter, or lessee; or \n\line 62.24 (2) post a copy of the notice in a conspicuous place on the \n\line 62.25 premises of the property. \n\line 62.26 The notice must be mailed or posted by the taxpayer by \n\line 62.27 November {\strike 27} {\ul 3} or within three days of receipt of the notice, \n\line 62.28 whichever is later. A taxpayer may notify the county treasurer \n\line 62.29 of the address of the taxpayer, agent, caretaker, or manager of \n\line 62.30 the premises to which the notice must be mailed in order to \n\line 62.31 fulfill the requirements of this paragraph. \n\line 62.32 (i) For purposes of this subdivision, subdivisions 5a and \n\line 62.33 6, "metropolitan special taxing districts" means the following \n\line 62.34 taxing districts in the seven-county metropolitan area that levy \n\line 62.35 a property tax for any of the specified purposes listed below: \n\line 62.36 (1) metropolitan council under section 473.132, 473.167, \n\line 63.1 473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; \n\line 63.2 (2) metropolitan airports commission under section 473.667, \n\line 63.3 473.671, or 473.672; and \n\line 63.4 (3) metropolitan mosquito control commission under section \n\line 63.5 473.711. \n\line 63.6 For purposes of this section, any levies made by the \n\line 63.7 regional rail authorities in the county of Anoka, Carver, \n\line 63.8 Dakota, Hennepin, Ramsey, Scott, or Washington under chapter \n\line 63.9 398A shall be included with the appropriate county's levy and \n\line 63.10 shall be discussed at that county's public hearing. \n\line 63.11 (j) If a statutory or home rule charter city or a town has \n\line 63.12 exercised the local levy option provided by section 473.388, \n\line 63.13 subdivision 7, it may include in the notice of its proposed \n\line 63.14 taxes the amount of its proposed taxes attributable to its \n\line 63.15 exercise of the option. In the first year of the city or town's \n\line 63.16 exercise of this option, the statement shall include an estimate \n\line 63.17 of the reduction of the metropolitan council's tax on the parcel \n\line 63.18 due to exercise of that option. The metropolitan council's levy \n\line 63.19 shall be adjusted accordingly. \n\line 63.20 Sec. 21. [275.75] [CHARTER EXEMPTION FOR AID LOSS.] \n\line 63.21 {\ul Notwithstanding any other provision of a municipal charter} \n\line 63.22 {\ul that limits ad valorem taxes to a lesser amount, or that would} \n\line 63.23 {\ul require voter approval for any increase, the governing body of a} \n\line 63.24 {\ul municipality may by resolution increase its levy for taxes} \n\line 63.25 {\ul payable in 2004 and 2005 only by an amount equal to the} \n\line 63.26 {\ul reduction in the amount of aid it is certified to receive under} \n\line 63.27 {\ul sections 477A.011 to 477A.03 for that same payable year compared} \n\line 63.28 {\ul to the amount certified in 2003.} \n\line 63.29 Sec. 22. Minnesota Statutes 2002, section 276.04, \n\line 63.30 subdivision 2, is amended to read: \n\line 63.31 Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer \n\line 63.32 shall provide for the printing of the tax statements. The \n\line 63.33 commissioner of revenue shall prescribe the form of the property \n\line 63.34 tax statement and its contents. The statement must contain a \n\line 63.35 tabulated statement of the dollar amount due to each taxing \n\line 63.36 authority and the amount of the state tax from the parcel of \n\line 64.1 real property for which a particular tax statement is prepared. \n\line 64.2 The dollar amounts attributable to the county, the state tax, \n\line 64.3 the voter approved school tax, the other local school tax, the \n\line 64.4 township or municipality, and the total of the metropolitan \n\line 64.5 special taxing districts as defined in section 275.065, \n\line 64.6 subdivision 3, paragraph (i), must be separately stated. The \n\line 64.7 amounts due all other special taxing districts, if any, may be \n\line 64.8 aggregated. If the county levy under this paragraph includes an \n\line 64.9 amount for a lake improvement district as defined under sections \n\line 64.10 103B.501 to 103B.581, the amount attributable for that purpose \n\line 64.11 must be separately stated from the remaining county levy \n\line 64.12 amount. {\ul In the case of Ramsey county, if the county levy under} \n\line 64.13 {\ul this paragraph includes an amount for public library service} \n\line 64.14 {\ul under section 134.07, the amount attributable for that purpose} \n\line 64.15 {\ul must be separately stated from the remaining county levy} \n\line 64.16 {\ul amount.} The amount of the tax on homesteads qualifying under \n\line 64.17 the senior citizens' property tax deferral program under chapter \n\line 64.18 290B is the total amount of property tax before subtraction of \n\line 64.19 the deferred property tax amount. The amount of the tax on \n\line 64.20 contamination value imposed under sections 270.91 to 270.98, if \n\line 64.21 any, must also be separately stated. The dollar amounts, \n\line 64.22 including the dollar amount of any special assessments, may be \n\line 64.23 rounded to the nearest even whole dollar. For purposes of this \n\line 64.24 section whole odd-numbered dollars may be adjusted to the next \n\line 64.25 higher even-numbered dollar. The amount of market value \n\line 64.26 excluded under section 273.11, subdivision 16, if any, must also \n\line 64.27 be listed on the tax statement. \n\line 64.28 (b) The property tax statements for manufactured homes and \n\line 64.29 sectional structures taxed as personal property shall contain \n\line 64.30 the same information that is required on the tax statements for \n\line 64.31 real property. \n\line 64.32 (c) Real and personal property tax statements must contain \n\line 64.33 the following information in the order given in this paragraph. \n\line 64.34 The information must contain the current year tax information in \n\line 64.35 the right column with the corresponding information for the \n\line 64.36 previous year in a column on the left: \n\line 65.1 (1) the property's estimated market value under section \n\line 65.2 273.11, subdivision 1; \n\line 65.3 (2) the property's taxable market value after reductions \n\line 65.4 under section 273.11, subdivisions 1a and 16; \n\line 65.5 (3) the property's gross tax, calculated by adding the \n\line 65.6 property's total property tax to the sum of the aids enumerated \n\line 65.7 in clause (4); \n\line 65.8 (4) a total of the following aids: \n\line 65.9 (i) education aids payable under chapters 122A, 123A, 123B, \n\line 65.10 124D, 125A, 126C, and 127A; \n\line 65.11 (ii) local government aids for cities, towns, and counties \n\line 65.12 under chapter 477A; \n\line 65.13 (iii) disparity reduction aid under section 273.1398; and \n\line 65.14 (iv) homestead and agricultural credit aid under section \n\line 65.15 273.1398; \n\line 65.16 (5) for homestead residential and agricultural properties, \n\line 65.17 the credits under section 273.1384; \n\line 65.18 (6) any credits received under sections 273.119; 273.123; \n\line 65.19 273.135; 273.1391; 273.1398, subdivision 4; 469.171; and \n\line 65.20 473H.10, except that the amount of credit received under section \n\line 65.21 273.135 must be separately stated and identified as "taconite \n\line 65.22 tax relief"; and \n\line 65.23 (7) the net tax payable in the manner required in paragraph \n\line 65.24 (a). \n\line 65.25 (d) If the county uses envelopes for mailing property tax \n\line 65.26 statements and if the county agrees, a taxing district may \n\line 65.27 include a notice with the property tax statement notifying \n\line 65.28 taxpayers when the taxing district will begin its budget \n\line 65.29 deliberations for the current year, and encouraging taxpayers to \n\line 65.30 attend the hearings. If the county allows notices to be \n\line 65.31 included in the envelope containing the property tax statement, \n\line 65.32 and if more than one taxing district relative to a given \n\line 65.33 property decides to include a notice with the tax statement, the \n\line 65.34 county treasurer or auditor must coordinate the process and may \n\line 65.35 combine the information on a single announcement. \n\line 65.36 The commissioner of revenue shall certify to the county \n\line 66.1 auditor the actual or estimated aids enumerated in clause (4) \n\line 66.2 that local governments will receive in the following year. The \n\line 66.3 commissioner must certify this amount by January 1 of each year. \n\line 66.4 Sec. 23. Minnesota Statutes 2002, section 278.03, \n\line 66.5 subdivision 1, is amended to read: \n\line 66.6 Subdivision 1. [REAL PROPERTY.] {\strike In the case of real} \n\line 66.7 {\strike property,} If the proceedings instituted by the filing of the \n\line 66.8 petition have not been completed before the 16th day of May next \n\line 66.9 following the filing {\ul or, in the case of class 1c property or} \n\line 66.10 {\ul class 4c resort property before the 16th day of July for taxes} \n\line 66.11 {\ul payable in 2004 and 2005 only}, the petitioner shall pay to the \n\line 66.12 county treasurer 50 percent of the tax levied for such year \n\line 66.13 against the property involved, unless permission to continue \n\line 66.14 prosecution of the petition without such payment is obtained as \n\line 66.15 herein provided. If the proceedings instituted by the filing of \n\line 66.16 the petition have not been completed by the next October 16, or, \n\line 66.17 in the case of class 1b agricultural homestead, class 2a \n\line 66.18 agricultural homestead, and class 2b(2) agricultural \n\line 66.19 nonhomestead property, November 16, the petitioner shall pay to \n\line 66.20 the county treasurer 50 percent of the unpaid balance of the \n\line 66.21 taxes levied for the year against the property involved if the \n\line 66.22 unpaid balance is $2,000 or less and 80 percent of the unpaid \n\line 66.23 balance if the unpaid balance is over $2,000, unless permission \n\line 66.24 to continue prosecution of the petition without payment is \n\line 66.25 obtained as herein provided. The petitioner, upon ten days' \n\line 66.26 notice to the county attorney and to the county auditor, given \n\line 66.27 at least ten days prior to the 16th day of May {\ul or, in the case} \n\line 66.28 {\ul of class 1c or class 4c resort property, the 16th day of July} \n\line 66.29 {\ul for taxes payable in 2004 and 2005 only,} or the 16th day of \n\line 66.30 October, or, in the case of class 1b agricultural homestead, \n\line 66.31 class 2a agricultural homestead, and class 2b(2) agricultural \n\line 66.32 nonhomestead property, the 16th day of November, may apply to \n\line 66.33 the court for permission to continue prosecution of the petition \n\line 66.34 without payment; and, if it is made to appear \n\line 66.35 (1) that the proposed review is to be taken in good faith; \n\line 66.36 (2) that there is probable cause to believe that the \n\line 67.1 property may be held exempt from the tax levied or that the tax \n\line 67.2 may be determined to be less than 50 percent of the amount \n\line 67.3 levied; and \n\line 67.4 (3) that it would work a hardship upon petitioner to pay \n\line 67.5 the taxes due, \n\line 67.6 the court may permit the petitioner to continue prosecution \n\line 67.7 of the petition without payment, or may fix a lesser amount to \n\line 67.8 be paid as a condition of continuing the prosecution of the \n\line 67.9 petition. \n\line 67.10 Failure to make payment of the amount required when due \n\line 67.11 shall operate automatically to dismiss the petition and all \n\line 67.12 proceedings thereunder unless the payment is waived by an order \n\line 67.13 of the court permitting the petitioner to continue prosecution \n\line 67.14 of the petition without payment. The petition shall be \n\line 67.15 automatically reinstated upon payment of the entire tax plus \n\line 67.16 interest and penalty if the payment is made within one year of \n\line 67.17 the dismissal. The county treasurer shall, upon request of the \n\line 67.18 petitioner, issue duplicate receipts for the tax payment, one of \n\line 67.19 which shall be filed by the petitioner in the proceeding. \n\line 67.20 Sec. 24. Minnesota Statutes 2002, section 278.05, \n\line 67.21 subdivision 6, is amended to read: \n\line 67.22 Subd. 6. [DISMISSAL OF PETITION; EXCLUSION OF CERTAIN \n\line 67.23 EVIDENCE.] (a) Information, including income and expense \n\line 67.24 figures, verified net rentable areas, and anticipated income and \n\line 67.25 expenses, for income-producing property must be provided to the \n\line 67.26 county assessor {\strike within 60 days after the petition has been filed} \n\line 67.27 {\strike under this chapter} {\ul no later than 60 days after the applicable} \n\line 67.28 {\ul filing deadline contained in section 278.01, subdivision 1 or} \n\line 67.29 {\ul 4}. Failure to provide the information required in this \n\line 67.30 paragraph shall result in the dismissal of the petition, \n\line 67.31 unless {\ul (1)} the failure to provide it was due to the \n\line 67.32 unavailability of the evidence at {\strike that} {\ul the} time {\ul that the} \n\line 67.33 {\ul information was due, or (2) the petitioner was not informed in} \n\line 67.34 {\ul writing by the assessor of the requirement to provide the} \n\line 67.35 {\ul information.} \n\line 67.36 {\ul If the petitioner proves that the assessor did not provide the} \n\line 68.1 {\ul written information, the petitioner has an additional 30 days to} \n\line 68.2 {\ul provide the information from the time the petitioner was} \n\line 68.3 {\ul informed of the requirement to provide the information,} \n\line 68.4 {\ul otherwise the petition shall be dismissed}. \n\line 68.5 (b) Provided that the information as contained in paragraph \n\line 68.6 (a) is timely submitted to the county assessor, the county \n\line 68.7 assessor shall furnish the petitioner at least five days before \n\line 68.8 the hearing under this chapter with the property's appraisal, if \n\line 68.9 any, which will be presented to the court at the hearing. The \n\line 68.10 petitioner shall furnish to the county assessor at least five \n\line 68.11 days before the hearing under this chapter with the property's \n\line 68.12 appraisal, if any, which will be presented to the court at the \n\line 68.13 hearing. An appraisal of the petitioner's property done by or \n\line 68.14 for the county shall not be admissible as evidence if the county \n\line 68.15 assessor does not comply with the provisions in this paragraph. \n\line 68.16 The petition shall be dismissed if the petitioner does not \n\line 68.17 comply with the provisions in this paragraph. \n\line 68.18 [EFFECTIVE DATE.] {\ul This section is effective for petitions} \n\line 68.19 {\ul filed on or after July 1, 2003.} \n\line 68.20 Sec. 25. Minnesota Statutes 2002, section 279.01, \n\line 68.21 subdivision 1, is amended to read: \n\line 68.22 Subdivision 1. [DUE DATES; PENALTIES.] Except as provided \n\line 68.23 in {\strike subdivision 3 or 4} {\ul this section}, on May 16 or 21 days after \n\line 68.24 the postmark date on the envelope containing the property tax \n\line 68.25 statement, whichever is later, a penalty shall accrue and \n\line 68.26 thereafter be charged upon all unpaid taxes on real estate on \n\line 68.27 the current lists in the hands of the county treasurer. The \n\line 68.28 penalty shall be at a rate of two percent on homestead property \n\line 68.29 until May 31 and four percent on June 1. The penalty on \n\line 68.30 nonhomestead property shall be at a rate of four percent until \n\line 68.31 May 31 and eight percent on June 1. This penalty shall not \n\line 68.32 accrue until June 1 of each year, or 21 days after the postmark \n\line 68.33 date on the envelope containing the property tax statements, \n\line 68.34 whichever is later, on commercial use real property used for \n\line 68.35 seasonal residential recreational purposes and classified as \n\line 68.36 class 1c or 4c, and on other commercial use real property \n\line 69.1 classified as class 3a, provided that over 60 percent of the \n\line 69.2 gross income earned by the enterprise on the class 3a property \n\line 69.3 is earned during the months of May, June, July, and August. Any \n\line 69.4 property owner of such class 3a property who pays the first half \n\line 69.5 of the tax due on the property after May 15 and before June 1, \n\line 69.6 or 21 days after the postmark date on the envelope containing \n\line 69.7 the property tax statement, whichever is later, shall attach an \n\line 69.8 affidavit to the payment attesting to compliance with the income \n\line 69.9 provision of this subdivision. Thereafter, for both homestead \n\line 69.10 and nonhomestead property, on the first day of each month \n\line 69.11 beginning July 1, up to and including October 1 following, an \n\line 69.12 additional penalty of one percent for each month shall accrue \n\line 69.13 and be charged on all such unpaid taxes provided that if the due \n\line 69.14 date was extended beyond May 15 as the result of any delay in \n\line 69.15 mailing property tax statements no additional penalty shall \n\line 69.16 accrue if the tax is paid by the extended due date. If the tax \n\line 69.17 is not paid by the extended due date, then all penalties that \n\line 69.18 would have accrued if the due date had been May 15 shall be \n\line 69.19 charged. When the taxes against any tract or lot exceed $50, \n\line 69.20 one-half thereof may be paid prior to May 16 or 21 days after \n\line 69.21 the postmark date on the envelope containing the property tax \n\line 69.22 statement, whichever is later; and, if so paid, no penalty shall \n\line 69.23 attach; the remaining one-half shall be paid at any time prior \n\line 69.24 to October 16 following, without penalty; but, if not so paid, \n\line 69.25 then a penalty of two percent shall accrue thereon for homestead \n\line 69.26 property and a penalty of four percent on nonhomestead \n\line 69.27 property. Thereafter, for homestead property, on the first day \n\line 69.28 of November an additional penalty of four percent shall accrue \n\line 69.29 and on the first day of December following, an additional \n\line 69.30 penalty of two percent shall accrue and be charged on all such \n\line 69.31 unpaid taxes. Thereafter, for nonhomestead property, on the \n\line 69.32 first day of November and December following, an additional \n\line 69.33 penalty of four percent for each month shall accrue and be \n\line 69.34 charged on all such unpaid taxes. If one-half of such taxes \n\line 69.35 shall not be paid prior to May 16 or 21 days after the postmark \n\line 69.36 date on the envelope containing the property tax statement, \n\line 70.1 whichever is later, the same may be paid at any time prior to \n\line 70.2 October 16, with accrued penalties to the date of payment added, \n\line 70.3 and thereupon no penalty shall attach to the remaining one-half \n\line 70.4 until October 16 following. \n\line 70.5 This section applies to payment of personal property taxes \n\line 70.6 assessed against improvements to leased property, except as \n\line 70.7 provided by section 277.01, subdivision 3. \n\line 70.8 A county may provide by resolution that in the case of a \n\line 70.9 property owner that has multiple tracts or parcels with \n\line 70.10 aggregate taxes exceeding $50, payments may be made in \n\line 70.11 installments as provided in this subdivision. \n\line 70.12 The county treasurer may accept payments of more or less \n\line 70.13 than the exact amount of a tax installment due. If the accepted \n\line 70.14 payment is less than the amount due, payments must be applied \n\line 70.15 first to the penalty accrued for the year the payment is made. \n\line 70.16 Acceptance of partial payment of tax does not constitute a \n\line 70.17 waiver of the minimum payment required as a condition for filing \n\line 70.18 an appeal under section 278.03 or any other law, nor does it \n\line 70.19 affect the order of payment of delinquent taxes under section \n\line 70.20 280.39. \n\line 70.21 Sec. 26. Minnesota Statutes 2002, section 279.01, is \n\line 70.22 amended by adding a subdivision to read: \n\line 70.23 {\ul Subd. 5.} [SEASONAL RESIDENTIAL RECREATIONAL PROPERTY USED \n\line 70.24 FOR COMMERCIAL PURPOSES.] {\ul For taxes payable in 2004 and 2005} \n\line 70.25 {\ul only, in the case of class 1c property and class 4c seasonal} \n\line 70.26 {\ul residential recreational property used for commercial purposes,} \n\line 70.27 {\ul no penalties shall accrue to the first one-half property tax} \n\line 70.28 {\ul payment as provided in this section if paid by July 15. On July} \n\line 70.29 {\ul 16, a penalty shall accrue and thereafter be charged upon all} \n\line 70.30 {\ul unpaid taxes. On class 1c property the penalty is at a rate of} \n\line 70.31 {\ul two percent until July 31, and four percent on August 1. On} \n\line 70.32 {\ul class 4c seasonal residential recreational property used for} \n\line 70.33 {\ul commercial purposes, the penalty is four percent until July 31} \n\line 70.34 {\ul and eight percent on August 1. Thereafter, for both class 1c} \n\line 70.35 {\ul and class 4c seasonal residential recreational property used for} \n\line 70.36 {\ul commercial purposes, on the first day of September and on the} \n\line 71.1 {\ul first day of October, an additional penalty of one percent shall} \n\line 71.2 {\ul accrue and be charged on unpaid taxes. The remaining one-half} \n\line 71.3 {\ul property taxes must be paid and penalties accrue as provided in} \n\line 71.4 {\ul subdivision 1.} \n\line 71.5 Sec. 27. Minnesota Statutes 2002, section 290A.03, \n\line 71.6 subdivision 8, is amended to read: \n\line 71.7 Subd. 8. [CLAIMANT.] (a) "Claimant" means a person, other \n\line 71.8 than a dependent, as defined under sections 151 and 152 of the \n\line 71.9 Internal Revenue Code disregarding section 152(b)(3) of the \n\line 71.10 Internal Revenue Code, who filed a claim authorized by this \n\line 71.11 chapter and who was a resident of this state as provided in \n\line 71.12 chapter 290 during the calendar year for which the claim for \n\line 71.13 relief was filed. \n\line 71.14 (b) In the case of a claim relating to rent constituting \n\line 71.15 property taxes, the claimant shall have resided in a rented or \n\line 71.16 leased unit on which ad valorem taxes or payments made in lieu \n\line 71.17 of ad valorem taxes, including payments of special assessments \n\line 71.18 imposed in lieu of ad valorem taxes, are payable at some time \n\line 71.19 during the calendar year covered by the claim. \n\line 71.20 (c) "Claimant" shall not include a resident of a nursing \n\line 71.21 home, intermediate care facility, {\strike or} long-term residential \n\line 71.22 facility{\ul , or a facility that accepts group residential housing} \n\line 71.23 {\ul payments} whose rent constituting property taxes is paid pursuant \n\line 71.24 to the supplemental security income program under title XVI of \n\line 71.25 the Social Security Act, the Minnesota supplemental aid program \n\line 71.26 under sections 256D.35 to 256D.54, the medical assistance \n\line 71.27 program pursuant to title XIX of the Social Security Act, {\strike or} the \n\line 71.28 general assistance medical care program pursuant to section \n\line 71.29 256D.03, subdivision 3{\ul , or the group residential housing program} \n\line 71.30 {\ul under chapter 256I}. \n\line 71.31 If only a portion of the rent constituting property taxes is \n\line 71.32 paid by these programs, the resident shall be a claimant for \n\line 71.33 purposes of this chapter, but the refund calculated pursuant to \n\line 71.34 section 290A.04 shall be multiplied by a fraction, the numerator \n\line 71.35 of which is income as defined in subdivision 3, paragraphs (1) \n\line 71.36 and (2), reduced by the total amount of income from the above \n\line 72.1 sources other than vendor payments under the medical assistance \n\line 72.2 program or the general assistance medical care program and the \n\line 72.3 denominator of which is income as defined in subdivision 3, \n\line 72.4 paragraphs (1) and (2), plus vendor payments under the medical \n\line 72.5 assistance program or the general assistance medical care \n\line 72.6 program, to determine the allowable refund pursuant to this \n\line 72.7 chapter. \n\line 72.8 (d) Notwithstanding paragraph (c), if the claimant was a \n\line 72.9 resident of the nursing home, intermediate care facility {\strike or}{\ul ,} \n\line 72.10 long-term residential facility{\ul , or facility for which the rent} \n\line 72.11 {\ul was paid for the claimant by the group residential housing} \n\line 72.12 {\ul program} for only a portion of the calendar year covered by the \n\line 72.13 claim, the claimant may compute rent constituting property taxes \n\line 72.14 by disregarding the rent constituting property taxes from the \n\line 72.15 nursing home{\strike , intermediate care facility,} or {\strike long-term} \n\line 72.16 {\strike residential} facility and use only that amount of rent \n\line 72.17 constituting property taxes or property taxes payable relating \n\line 72.18 to that portion of the year when the claimant was not in the \n\line 72.19 facility. The claimant's household income is the income for the \n\line 72.20 entire calendar year covered by the claim. \n\line 72.21 (e) In the case of a claim for rent constituting property \n\line 72.22 taxes of a part-year Minnesota resident, the income and rental \n\line 72.23 reflected in this computation shall be for the period of \n\line 72.24 Minnesota residency only. Any rental expenses paid which may be \n\line 72.25 reflected in arriving at federal adjusted gross income cannot be \n\line 72.26 utilized for this computation. When two individuals of a \n\line 72.27 household are able to meet the qualifications for a claimant, \n\line 72.28 they may determine among them as to who the claimant shall be. \n\line 72.29 If they are unable to agree, the matter shall be referred to the \n\line 72.30 commissioner of revenue whose decision shall be final. If a \n\line 72.31 homestead property owner was a part-year Minnesota resident, the \n\line 72.32 income reflected in the computation made pursuant to section \n\line 72.33 290A.04 shall be for the entire calendar year, including income \n\line 72.34 not assignable to Minnesota. \n\line 72.35 (f) If a homestead is occupied by two or more renters, who \n\line 72.36 are not husband and wife, the rent shall be deemed to be paid \n\line 73.1 equally by each, and separate claims shall be filed by each. \n\line 73.2 The income of each shall be each renter's household income for \n\line 73.3 purposes of computing the amount of credit to be allowed. \n\line 73.4 [EFFECTIVE DATE.] {\ul This section is effective for claims} \n\line 73.5 {\ul based on rent paid in 2003 and thereafter.} \n\line 73.6 Sec. 28. Laws 1989, chapter 211, section 8, subdivision 2, \n\line 73.7 as amended by Laws 2002, chapter 390, section 24, is amended to \n\line 73.8 read: \n\line 73.9 Subd. 2. [OPERATION OF DISTRICT.] {\ul (a)} A hospital district \n\line 73.10 created under this section shall be subject to Minnesota \n\line 73.11 Statutes, sections 447.32, except subdivision 1, to 447.41, and \n\line 73.12 except as provided otherwise in this act. \n\line 73.13 {\ul (b) A hospital district created under this section is a} \n\line 73.14 {\ul municipal corporation and a political subdivision of the state.} \n\line 73.15 [EFFECTIVE DATE.] {\ul This section is effective upon compliance} \n\line 73.16 {\ul with Minnesota Statutes, section 645.021, subdivision 3, by the} \n\line 73.17 {\ul governing body of the Cook county hospital district.} \n\line 73.18 Sec. 29. Laws 1989, chapter 211, section 8, subdivision 4, \n\line 73.19 as amended by Laws 2002, chapter 390, section 24, is amended to \n\line 73.20 read: \n\line 73.21 Subd. 4. [TAX LEVY.] The tax levied under Minnesota \n\line 73.22 Statutes, section 447.34, shall not exceed $300,000 {\strike in any year,} \n\line 73.23 {\strike and its} {\ul for taxes levied in 2002. For taxes levied in 2003 and} \n\line 73.24 {\ul subsequent years, the tax must not exceed the lesser of:} \n\line 73.25 {\ul (1) the product of the hospital district's property tax} \n\line 73.26 {\ul levy limitation for the previous year determined under this} \n\line 73.27 {\ul subdivision, multiplied by 103 percent; or} \n\line 73.28 {\ul (2) the product of the hospital district's property tax} \n\line 73.29 {\ul levy limitation for the previous year determined under this} \n\line 73.30 {\ul subdivision multiplied by the ratio of the most recent available} \n\line 73.31 {\ul annual medical care expenditure category of the revised Consumer} \n\line 73.32 {\ul Price Index, U.S. citywide average, for all urban consumers} \n\line 73.33 {\ul prepared by the United States Department of Labor to the same} \n\line 73.34 {\ul annual index for the previous year.} \n\line 73.35 {\ul The} proceeds {\ul of the tax} may be used for all purposes of the \n\line 73.36 hospital district. \n\line 74.1 [EFFECTIVE DATE.] {\ul This section is effective upon compliance} \n\line 74.2 {\ul with Minnesota Statutes, section 645.021, subdivision 3, by the} \n\line 74.3 {\ul governing body of the Cook county hospital district.} \n\line 74.4 Sec. 30. Laws 2001, First Special Session chapter 5, \n\line 74.5 article 3, section 96, is amended to read: \n\line 74.6 Sec. 96. [REPEALER.] \n\line 74.7 (a) Minnesota Statutes 2000, sections 273.13, subdivision \n\line 74.8 24a; 273.1382; 273.1399; 275.078; 275.08, subdivision 1e; \n\line 74.9 473.446, subdivisions 1a and 1b; and 473.3915, are repealed \n\line 74.10 effective for taxes levied in 2001, payable in 2002, and \n\line 74.11 thereafter and aids or credits payable in 2002 and thereafter. \n\line 74.12 (b) Laws 1988, chapter 426, section 1; Laws 1988, chapter \n\line 74.13 702, section 16; Laws 1992, chapter 511, article 2, section 52, \n\line 74.14 as amended by Laws 1997, chapter 231, article 2, section 50, and \n\line 74.15 Laws 1998, chapter 389, article 3, section 32; Laws 1996, \n\line 74.16 chapter 471, article 8, section 45; Laws 1999, chapter 243, \n\line 74.17 article 6, section 14; Laws 1999, chapter 243, article 6, \n\line 74.18 section 15; and Laws 2000, chapter 490, article 6, section 17, \n\line 74.19 are repealed effective for taxes levied in 2001, payable in 2002 \n\line 74.20 and thereafter. \n\line 74.21 (c) Minnesota Statutes 2000, sections 126C.30; 126C.31; \n\line 74.22 126C.32; 126C.33; 126C.34; 126C.35; and 126C.36, are repealed \n\line 74.23 effective July 1, 2001. \n\line 74.24 {\strike (d) Minnesota Statutes 2000, section 273.126 and 462A.071,} \n\line 74.25 {\strike are repealed effective for property taxes payable in 2004, and} \n\line 74.26 {\strike any agreement entered into pursuant to the provisions of those} \n\line 74.27 {\strike sections expires, effective January 1, 2004, regardless of the} \n\line 74.28 {\strike term of the agreement.} \n\line 74.29 Sec. 31. Laws 2002, chapter 377, article 3, section 15, \n\line 74.30 the effective date, is amended to read: \n\line 74.31 [EFFECTIVE DATE.] This section is effective for sales made \n\line 74.32 after August 31, 2002, and on or before December 31, {\strike 2003} {\ul 2004}. \n\line 74.33 Sec. 32. [PROPERTY TAX ASSESSMENT OF LOW-INCOME HOUSING, \n\line 74.34 RULES.] \n\line 74.35 {\ul The commissioner of revenue shall develop guidelines for} \n\line 74.36 {\ul use by assessors in calculating the restricted use value of} \n\line 75.1 {\ul class 4d property under Minnesota Statutes, section 273.11,} \n\line 75.2 {\ul subdivision 22.} \n\line 75.3 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 75.4 {\ul following final enactment.} \n\line 75.5 Sec. 33. [COMMERCIAL-INDUSTRIAL LAND VALUE TAXATION; LOCAL \n\line 75.6 OPTION.] \n\line 75.7 {\ul The governing body of any municipality that has a} \n\line 75.8 {\ul population in excess of 70,000, or any municipality located in} \n\line 75.9 {\ul the taconite tax relief area defined in Minnesota Statutes,} \n\line 75.10 {\ul section 273.134, may by resolution adopt a system of valuing} \n\line 75.11 {\ul commercial-industrial property in its jurisdiction that is based} \n\line 75.12 {\ul on the value of the land, not including improvements. The} \n\line 75.13 {\ul governing body may make the election under this section if it} \n\line 75.14 {\ul finds that implementation of the land value system will enhance} \n\line 75.15 {\ul economic development in the city. An election under this} \n\line 75.16 {\ul section must be made by December 31, 2003. If any municipality} \n\line 75.17 {\ul makes the election, it must notify the commissioner of revenue} \n\line 75.18 {\ul of the election and the legislature must enact during the 2004} \n\line 75.19 {\ul legislative session the legislation necessary to implement the} \n\line 75.20 {\ul system for taxes levied in 2004, payable in 2005, and thereafter.}\n\line 75.21 Sec. 34. [LEGISLATIVE APPROVAL OF CONSUMPTIVE USE OF \n\line 75.22 WATER.] \n\line 75.23 {\ul Pursuant to Minnesota Statutes, section 103G.265,} \n\line 75.24 {\ul subdivision 3, the legislature approves the consumptive use} \n\line 75.25 {\ul under a permit of more than 2,000,000 gallons per day average in} \n\line 75.26 {\ul a 30-day period in Rosemount, in connection with a gas fueled} \n\line 75.27 {\ul combined cycle electric generating facility, subject to the} \n\line 75.28 {\ul commissioner of natural resources making a determination that} \n\line 75.29 {\ul the water remaining in the basin of origin will be adequate to} \n\line 75.30 {\ul meet the basin's need for water and approval by the commissioner} \n\line 75.31 {\ul of natural resources of all applicable permits.} \n\line 75.32 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 75.33 {\ul following final enactment.} \n\line 75.34 Sec. 35. [LEGISLATIVE APPROVAL OF CONSUMPTIVE USE OF \n\line 75.35 WATER.] \n\line 75.36 {\ul Pursuant to Minnesota Statutes, section 103G.265,} \n\line 76.1 {\ul subdivision 3, the legislature approves the consumptive use} \n\line 76.2 {\ul under a permit of more than 2,000,000 gallons per day average in} \n\line 76.3 {\ul a 30-day period in Mankato, in connection with a gas fueled} \n\line 76.4 {\ul combined cycle electric generating facility, subject to the} \n\line 76.5 {\ul commissioner of natural resources making a determination that} \n\line 76.6 {\ul the water remaining in the basin of origin will be adequate to} \n\line 76.7 {\ul meet the basin's need for water and approval by the commissioner} \n\line 76.8 {\ul of natural resources of all applicable permits.} \n\line 76.9 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 76.10 {\ul following final enactment.} \n\line 76.11 ARTICLE 4\n\line 76.12 LOCAL DEVELOPMENT\n\line 76.13 Section 1. [469.1083] [COUNTY ECONOMIC DEVELOPMENT \n\line 76.14 AUTHORITY; METROPOLITAN AREA.] \n\line 76.15 {\ul Subdivision 1.} [ECONOMIC DEVELOPMENT POWERS AND DUTIES.] {\ul A} \n\line 76.16 {\ul county located in the metropolitan area may, by resolution of} \n\line 76.17 {\ul the county board, grant an existing county housing and} \n\line 76.18 {\ul redevelopment authority any of the powers and duties of an} \n\line 76.19 {\ul economic development authority under sections 469.090 to} \n\line 76.20 {\ul 469.093, 469.095 to 469.106, 469.108, and 469.1081. For the} \n\line 76.21 {\ul purposes of this section, a county community development} \n\line 76.22 {\ul authority is a county housing and redevelopment authority that} \n\line 76.23 {\ul has been granted economic development authority powers and} \n\line 76.24 {\ul duties. In applying sections 469.090 to 469.093, 469.095 to} \n\line 76.25 {\ul 469.106, 469.108, and 469.1081 to a county community development} \n\line 76.26 {\ul authority, the county is considered to be the city and the} \n\line 76.27 {\ul county board is considered to be the city council.} \n\line 76.28 {\ul Subd. 2.} [RELATION TO LOCAL AUTHORITIES.] {\ul Nothing in this} \n\line 76.29 {\ul section shall alter or impair the powers or duties of a city, a} \n\line 76.30 {\ul municipal housing and redevelopment authority, or a municipal} \n\line 76.31 {\ul economic development authority.} \n\line 76.32 {\ul Subd. 3.} [LOCAL APPROVAL.] {\ul If an economic development} \n\line 76.33 {\ul project is constructed in the county under this section and the} \n\line 76.34 {\ul project is within the boundaries of a home rule charter or} \n\line 76.35 {\ul statutory city, the location of the project must be approved by} \n\line 76.36 {\ul the governing body of the city.} \n\line 77.1 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 77.2 {\ul following final enactment and applies in the counties of Anoka,} \n\line 77.3 {\ul Hennepin, Ramsey, and Washington.} \n\line 77.4 Sec. 2. Minnesota Statutes 2002, section 469.169, is \n\line 77.5 amended by adding a subdivision to read: \n\line 77.6 {\ul Subd. 16.} [ADDITIONAL BORDER CITY ALLOCATIONS.] {\ul (a) In} \n\line 77.7 {\ul addition to tax reductions authorized in subdivisions 7 to 15,} \n\line 77.8 {\ul the commissioner shall allocate $750,000 for tax reductions to} \n\line 77.9 {\ul border city enterprise zones in cities located on the western} \n\line 77.10 {\ul border of the state. The commissioner shall make allocations to} \n\line 77.11 {\ul zones in cities on the western border on a per capita basis.} \n\line 77.12 {\ul Allocations made under this subdivision may be used for tax} \n\line 77.13 {\ul reductions as provided in section 469.171, or for other offsets} \n\line 77.14 {\ul of taxes imposed on or remitted by businesses located in the} \n\line 77.15 {\ul enterprise zone, but only if the municipality determines that} \n\line 77.16 {\ul the granting of the tax reduction or offset is necessary in} \n\line 77.17 {\ul order to retain a business within or attract a business to the} \n\line 77.18 {\ul zone. Any portion of the allocation provided in this paragraph} \n\line 77.19 {\ul may alternatively be used for tax reductions under section} \n\line 77.20 {\ul 469.1732 or 469.1734.} \n\line 77.21 {\ul (b) The commissioner shall allocate $750,000 for tax} \n\line 77.22 {\ul reductions under section 469.1732 or 469.1734 to cities with} \n\line 77.23 {\ul border city enterprise zones located on the western border of} \n\line 77.24 {\ul the state. The commissioner shall allocate this amount among} \n\line 77.25 {\ul the cities on a per capita basis. Any portion of the allocation} \n\line 77.26 {\ul provided in this paragraph may alternatively be used for tax} \n\line 77.27 {\ul reductions as provided in section 469.171.} \n\line 77.28 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 77.29 {\ul following final enactment.} \n\line 77.30 Sec. 3. Minnesota Statutes 2002, section 469.1731, \n\line 77.31 subdivision 3, is amended to read: \n\line 77.32 Subd. 3. [FILING.] The city must file a copy of the \n\line 77.33 resolution and development plan with the commissioner of trade \n\line 77.34 and economic development. The designation takes effect {\strike for the} \n\line 77.35 {\strike first calendar year that begins more than 90} {\ul 30} days after the \n\line 77.36 filing. \n\line 78.1 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 78.2 {\ul following final enactment.} \n\line 78.3 Sec. 4. Minnesota Statutes 2002, section 469.174, \n\line 78.4 subdivision 10, is amended to read: \n\line 78.5 Subd. 10. [REDEVELOPMENT DISTRICT.] (a) "Redevelopment \n\line 78.6 district" means a type of tax increment financing district \n\line 78.7 consisting of a project, or portions of a project, within which \n\line 78.8 the authority finds by resolution that one or more of the \n\line 78.9 following conditions, reasonably distributed throughout the \n\line 78.10 district, exists: \n\line 78.11 (1) parcels consisting of 70 percent of the area of the \n\line 78.12 district are occupied by buildings, streets, utilities, paved or \n\line 78.13 gravel parking lots, or other similar structures and more than \n\line 78.14 50 percent of the buildings, not including outbuildings, are \n\line 78.15 structurally substandard to a degree requiring substantial \n\line 78.16 renovation or clearance; {\strike or} \n\line 78.17 (2) the property consists of vacant, unused, underused, \n\line 78.18 inappropriately used, or infrequently used railyards, rail \n\line 78.19 storage facilities, or excessive or vacated railroad \n\line 78.20 rights-of-way; {\strike or} \n\line 78.21 (3) tank facilities, or property whose immediately previous \n\line 78.22 use was for tank facilities, as defined in section 115C.02, \n\line 78.23 subdivision 15, if the tank facilities: \n\line 78.24 (i) have or had a capacity of more than 1,000,000 gallons; \n\line 78.25 (ii) are located adjacent to rail facilities; and \n\line 78.26 (iii) have been removed or are unused, underused, \n\line 78.27 inappropriately used, or infrequently used{\ul ; or} \n\line 78.28 {\ul (4) a qualifying disaster area, as defined in subdivision} \n\line 78.29 {\ul 10b}. \n\line 78.30 (b) For purposes of this subdivision, "structurally \n\line 78.31 substandard" shall mean containing defects in structural \n\line 78.32 elements or a combination of deficiencies in essential utilities \n\line 78.33 and facilities, light and ventilation, fire protection including \n\line 78.34 adequate egress, layout and condition of interior partitions, or \n\line 78.35 similar factors, which defects or deficiencies are of sufficient \n\line 78.36 total significance to justify substantial renovation or \n\line 79.1 clearance. \n\line 79.2 (c) A building is not structurally substandard if it is in \n\line 79.3 compliance with the building code applicable to new buildings or \n\line 79.4 could be modified to satisfy the building code at a cost of less \n\line 79.5 than 15 percent of the cost of constructing a new structure of \n\line 79.6 the same square footage and type on the site. The municipality \n\line 79.7 may find that a building is not disqualified as structurally \n\line 79.8 substandard under the preceding sentence on the basis of \n\line 79.9 reasonably available evidence, such as the size, type, and age \n\line 79.10 of the building, the average cost of plumbing, electrical, or \n\line 79.11 structural repairs, or other similar reliable evidence. The \n\line 79.12 municipality may not make such a determination without an \n\line 79.13 interior inspection of the property, but need not have an \n\line 79.14 independent, expert appraisal prepared of the cost of repair and \n\line 79.15 rehabilitation of the building. An interior inspection of the \n\line 79.16 property is not required, if the municipality finds that (1) the \n\line 79.17 municipality or authority is unable to gain access to the \n\line 79.18 property after using its best efforts to obtain permission from \n\line 79.19 the party that owns or controls the property; and (2) the \n\line 79.20 evidence otherwise supports a reasonable conclusion that the \n\line 79.21 building is structurally substandard. Items of evidence that \n\line 79.22 support such a conclusion include recent fire or police \n\line 79.23 inspections, on-site property tax appraisals or housing \n\line 79.24 inspections, exterior evidence of deterioration, or other \n\line 79.25 similar reliable evidence. Written documentation of the \n\line 79.26 findings and reasons why an interior inspection was not \n\line 79.27 conducted must be made and retained under section 469.175, \n\line 79.28 subdivision 3, clause (1). \n\line 79.29 (d) A parcel is deemed to be occupied by a structurally \n\line 79.30 substandard building for purposes of the finding under paragraph \n\line 79.31 (a) if all of the following conditions are met: \n\line 79.32 (1) the parcel was occupied by a substandard building \n\line 79.33 within three years of the filing of the request for \n\line 79.34 certification of the parcel as part of the district with the \n\line 79.35 county auditor; \n\line 79.36 (2) the substandard building was demolished or removed by \n\line 80.1 the authority or the demolition or removal was financed by the \n\line 80.2 authority or was done by a developer under a development \n\line 80.3 agreement with the authority; \n\line 80.4 (3) the authority found by resolution before the demolition \n\line 80.5 or removal that the parcel was occupied by a structurally \n\line 80.6 substandard building and that after demolition and clearance the \n\line 80.7 authority intended to include the parcel within a district; and \n\line 80.8 (4) upon filing the request for certification of the tax \n\line 80.9 capacity of the parcel as part of a district, the authority \n\line 80.10 notifies the county auditor that the original tax capacity of \n\line 80.11 the parcel must be adjusted as provided by section 469.177, \n\line 80.12 subdivision 1, paragraph (h). \n\line 80.13 (e) For purposes of this subdivision, a parcel is not \n\line 80.14 occupied by buildings, streets, utilities, paved or gravel \n\line 80.15 parking lots, or other similar structures unless 15 percent of \n\line 80.16 the area of the parcel contains buildings, streets, utilities, \n\line 80.17 paved or gravel parking lots, or other similar structures. \n\line 80.18 (f) For districts consisting of two or more noncontiguous \n\line 80.19 areas, each area must qualify as a redevelopment district under \n\line 80.20 paragraph (a) to be included in the district, and the entire \n\line 80.21 area of the district must satisfy paragraph (a). \n\line 80.22 [EFFECTIVE DATE.] {\ul This section is effective for districts} \n\line 80.23 {\ul for which the request for certification is made after the day} \n\line 80.24 {\ul following final enactment.} \n\line 80.25 Sec. 5. Minnesota Statutes 2002, section 469.174, is \n\line 80.26 amended by adding a subdivision to read: \n\line 80.27 {\ul Subd. 10b.} [QUALIFIED DISASTER AREA.] {\ul A "qualified} \n\line 80.28 {\ul disaster area" is an area that meets the following requirements:} \n\line 80.29 {\ul (1) parcels consisting of 70 percent of the area of the} \n\line 80.30 {\ul district were occupied by buildings, streets, utilities, paved} \n\line 80.31 {\ul or gravel parking lots, or other similar structures immediately} \n\line 80.32 {\ul before the disaster or emergency;} \n\line 80.33 {\ul (2) the area of the district was subject to a disaster or} \n\line 80.34 {\ul emergency, as defined in section 273.123, subdivision 1, within} \n\line 80.35 {\ul the 18-month period ending on the day the request for} \n\line 80.36 {\ul certification of the district is made; and} \n\line 81.1 {\ul (3) 50 percent or more of the buildings in the area have} \n\line 81.2 {\ul suffered substantial damage as a result of the disaster or} \n\line 81.3 {\ul emergency.} \n\line 81.4 [EFFECTIVE DATE.] {\ul This section is effective for districts} \n\line 81.5 {\ul for which the request for certification is made after the day} \n\line 81.6 {\ul following final enactment.} \n\line 81.7 Sec. 6. Minnesota Statutes 2002, section 469.174, is \n\line 81.8 amended by adding a subdivision to read: \n\line 81.9 {\ul Subd. 28.} [QUALIFIED HOUSING DISTRICT.] {\ul "Qualified housing} \n\line 81.10 {\ul district" means:} \n\line 81.11 {\ul (1) a housing district for a residential rental project or} \n\line 81.12 {\ul projects in which the only properties receiving assistance from} \n\line 81.13 {\ul revenues derived from tax increments from the district meet all} \n\line 81.14 {\ul of the requirements for a low-income housing credit under} \n\line 81.15 {\ul section 42 of the Internal Revenue Code of 1986, as amended} \n\line 81.16 {\ul through December 31, 1992, regardless of whether the project} \n\line 81.17 {\ul actually receives a low-income housing credit; or} \n\line 81.18 {\ul (2) a housing district for a single-family homeownership} \n\line 81.19 {\ul project or projects, if 95 percent or more of the homes} \n\line 81.20 {\ul receiving assistance from tax increments from the district are} \n\line 81.21 {\ul purchased by qualified purchasers. A qualified purchaser means} \n\line 81.22 {\ul the first purchaser of a home after the tax increment assistance} \n\line 81.23 {\ul is provided whose income is at or below 100 percent of the} \n\line 81.24 {\ul median gross income for a family of the same size as the} \n\line 81.25 {\ul purchaser. Median gross income is the greater of (i) area} \n\line 81.26 {\ul median gross income, or (ii) the statewide median gross income,} \n\line 81.27 {\ul as determined by the secretary of housing and urban development.} \n\line 81.28 Sec. 7. Minnesota Statutes 2002, section 469.176, \n\line 81.29 subdivision 7, is amended to read: \n\line 81.30 Subd. 7. [PARCELS NOT INCLUDABLE IN DISTRICTS.] (a) The \n\line 81.31 authority may request inclusion in a tax increment financing \n\line 81.32 district and the county auditor may certify the original tax \n\line 81.33 capacity of a parcel or a part of a parcel that qualified under \n\line 81.34 the provisions of section 273.111 or 273.112 or chapter 473H for \n\line 81.35 taxes payable in any of the five calendar years before the \n\line 81.36 filing of the request for certification only for: \n\line 82.1 (1) a district in which 85 percent or more of the planned \n\line 82.2 buildings and facilities (determined on the basis of square \n\line 82.3 footage) are a qualified manufacturing facility or a qualified \n\line 82.4 distribution facility or a combination of both; or \n\line 82.5 (2) a qualified housing district {\strike as defined in section} \n\line 82.6 {\strike 273.1399, subdivision 1}. \n\line 82.7 (b)(1) A distribution facility means buildings and other \n\line 82.8 improvements to real property that are used to conduct \n\line 82.9 activities in at least each of the following categories: \n\line 82.10 (i) to store or warehouse tangible personal property; \n\line 82.11 (ii) to take orders for shipment, mailing, or delivery; \n\line 82.12 (iii) to prepare personal property for shipment, mailing, \n\line 82.13 or delivery; and \n\line 82.14 (iv) to ship, mail, or deliver property. \n\line 82.15 (2) A manufacturing facility includes space used for \n\line 82.16 manufacturing or producing tangible personal property, including \n\line 82.17 processing resulting in the change in condition of the property, \n\line 82.18 and space necessary for and related to the manufacturing \n\line 82.19 activities. \n\line 82.20 (3) To be a qualified facility, the owner or operator of a \n\line 82.21 manufacturing or distribution facility must agree to pay and pay \n\line 82.22 90 percent or more of the employees of the facility at a rate \n\line 82.23 equal to or greater than 160 percent of the federal minimum wage \n\line 82.24 for individuals over the age of 20. \n\line 82.25 Sec. 8. Minnesota Statutes 2002, section 469.1761, is \n\line 82.26 amended by adding a subdivision to read: \n\line 82.27 {\ul Subd. 3a.} [MIXED-INCOME OCCUPANCY PROJECTS.] {\ul (a)} \n\line 82.28 {\ul Notwithstanding the income requirements in section 469.174,} \n\line 82.29 {\ul subdivision 11, or subdivisions 2 and 3, an authority may create} \n\line 82.30 {\ul housing districts for developments that contain both} \n\line 82.31 {\ul owner-occupied and residential rental units for mixed-income} \n\line 82.32 {\ul occupancy. Such a district consists of a project, or a portion} \n\line 82.33 {\ul of a project, intended for occupancy, in part, by persons of low} \n\line 82.34 {\ul and moderate income as defined in chapter 462A, Title II, of the} \n\line 82.35 {\ul National Housing Act of 1934; the National Housing Act of 1959;} \n\line 82.36 {\ul the United States Housing Act of 1937, as amended; Title V of} \n\line 83.1 {\ul the Housing Act of 1949, as amended; any other similar present} \n\line 83.2 {\ul or future federal, state, or municipal legislation, or the} \n\line 83.3 {\ul regulations promulgated under any of those acts, as further set} \n\line 83.4 {\ul forth in this section. Twenty percent of the units in the} \n\line 83.5 {\ul development in the housing district must be occupied by} \n\line 83.6 {\ul individuals whose family income is equal to or less than 50} \n\line 83.7 {\ul percent of area median gross income and an additional 60 percent} \n\line 83.8 {\ul of the units in the development in the housing district must be} \n\line 83.9 {\ul occupied by individuals whose family income is equal to or less} \n\line 83.10 {\ul than 115 percent of area median gross income. Twenty percent of} \n\line 83.11 {\ul the units in the development in the housing district shall not} \n\line 83.12 {\ul be subject to any income limitations.} \n\line 83.13 {\ul (b) For purposes of this subdivision, "family income" means} \n\line 83.14 {\ul the median gross income for the area as determined under section} \n\line 83.15 {\ul 42 of the Internal Revenue Code of 1986, as amended. The income} \n\line 83.16 {\ul requirements of this subdivision shall be deemed to be satisfied} \n\line 83.17 {\ul if the sum of qualified owner-occupied units and qualified} \n\line 83.18 {\ul residential rental units equals the required total number of} \n\line 83.19 {\ul qualified units. Owner-occupied units must be initially} \n\line 83.20 {\ul purchased and occupied by individuals whose family income} \n\line 83.21 {\ul satisfies the income requirements of this subdivision. For} \n\line 83.22 {\ul residential rental property, the income requirements of this} \n\line 83.23 {\ul subdivision apply for the duration of the tax increment district.}\n\line 83.24 {\ul (c) The development in the housing district, but not the} \n\line 83.25 {\ul project, does not qualify under this subdivision if the fair} \n\line 83.26 {\ul market value of the improvements that are constructed for} \n\line 83.27 {\ul commercial uses or for uses other than owner-occupied and rental} \n\line 83.28 {\ul mixed-income housing consists of more than 20 percent of the} \n\line 83.29 {\ul total fair market value of the planned improvements in the} \n\line 83.30 {\ul development plan or agreement. The fair market value of the} \n\line 83.31 {\ul improvements may be determined using the cost of construction,} \n\line 83.32 {\ul capitalized income, or other appropriate method of estimating} \n\line 83.33 {\ul market value.} \n\line 83.34 [EFFECTIVE DATE.] {\ul This section is effective for districts} \n\line 83.35 {\ul for which certification is requested after July 31, 2003.} \n\line 83.36 Sec. 9. Minnesota Statutes 2002, section 469.1763, \n\line 84.1 subdivision 2, is amended to read: \n\line 84.2 Subd. 2. [EXPENDITURES OUTSIDE DISTRICT.] (a) For each tax \n\line 84.3 increment financing district, an amount equal to at least 75 \n\line 84.4 percent of the revenue derived from tax increments paid by \n\line 84.5 properties in the district must be expended on activities in the \n\line 84.6 district or to pay bonds, to the extent that the proceeds of the \n\line 84.7 bonds were used to finance activities in the district or to pay, \n\line 84.8 or secure payment of, debt service on credit enhanced bonds. \n\line 84.9 For districts, other than redevelopment districts for which the \n\line 84.10 request for certification was made after June 30, 1995, the \n\line 84.11 in-district percentage for purposes of the preceding sentence is \n\line 84.12 80 percent. Not more than 25 percent of the revenue derived \n\line 84.13 from tax increments paid by properties in the district may be \n\line 84.14 expended, through a development fund or otherwise, on activities \n\line 84.15 outside of the district but within the defined geographic area \n\line 84.16 of the project except to pay, or secure payment of, debt service \n\line 84.17 on credit enhanced bonds. For districts, other than \n\line 84.18 redevelopment districts for which the request for certification \n\line 84.19 was made after June 30, 1995, the pooling percentage for \n\line 84.20 purposes of the preceding sentence is 20 percent. The revenue \n\line 84.21 derived from tax increments for the district that are expended \n\line 84.22 on costs under section 469.176, subdivision 4h, paragraph (b), \n\line 84.23 may be deducted first before calculating the percentages that \n\line 84.24 must be expended within and without the district. \n\line 84.25 (b) In the case of a housing district, a housing project, \n\line 84.26 as defined in section 469.174, subdivision 11, is an activity in \n\line 84.27 the district. \n\line 84.28 (c) All administrative expenses are for activities outside \n\line 84.29 of the district{\ul , except that if the only expenses for activities} \n\line 84.30 {\ul outside of the district under this subdivision are for the} \n\line 84.31 {\ul purposes described in paragraph (d), administrative expenses} \n\line 84.32 {\ul will be considered as expenditures for activities in the} \n\line 84.33 {\ul district}. \n\line 84.34 (d) The authority may elect, in the tax increment financing \n\line 84.35 plan for the district, to increase by up to ten percentage \n\line 84.36 points the permitted amount of expenditures for activities \n\line 85.1 located outside the geographic area of the district under \n\line 85.2 paragraph (a). As permitted by section 469.176, subdivision 4k, \n\line 85.3 the expenditures, including the permitted expenditures under \n\line 85.4 paragraph (a), need not be made within the geographic area of \n\line 85.5 the project. To qualify for the increase under this paragraph, \n\line 85.6 the expenditures must: \n\line 85.7 (1) be used exclusively to assist housing that meets the \n\line 85.8 requirement for a qualified low-income building, as that term is \n\line 85.9 used in section 42 of the Internal Revenue Code; \n\line 85.10 (2) not exceed the qualified basis of the housing, as \n\line 85.11 defined under section 42(c) of the Internal Revenue Code, less \n\line 85.12 the amount of any credit allowed under section 42 of the \n\line 85.13 Internal Revenue Code; and \n\line 85.14 (3) be used to: \n\line 85.15 (i) acquire and prepare the site of the housing; \n\line 85.16 (ii) acquire, construct, or rehabilitate the housing; or \n\line 85.17 (iii) make public improvements directly related to the \n\line 85.18 housing. \n\line 85.19 Sec. 10. Minnesota Statutes 2002, section 469.177, \n\line 85.20 subdivision 1, is amended to read: \n\line 85.21 Subdivision 1. [ORIGINAL NET TAX CAPACITY.] (a) Upon or \n\line 85.22 after adoption of a tax increment financing plan, the auditor of \n\line 85.23 any county in which the district is situated shall, upon request \n\line 85.24 of the authority, certify the original net tax capacity of the \n\line 85.25 tax increment financing district and that portion of the \n\line 85.26 district overlying any subdistrict as described in the tax \n\line 85.27 increment financing plan and shall certify in each year \n\line 85.28 thereafter the amount by which the original net tax capacity has \n\line 85.29 increased or decreased as a result of a change in tax exempt \n\line 85.30 status of property within the district and any subdistrict, \n\line 85.31 reduction or enlargement of the district or changes pursuant to \n\line 85.32 subdivision 4. \n\line 85.33 (b) For districts approved under section 469.175, \n\line 85.34 subdivision 3, or parcels added to existing districts after May \n\line 85.35 1, 1988, if the classification under section 273.13 of property \n\line 85.36 located in a district changes to a classification that has a \n\line 86.1 different assessment ratio, the original net tax capacity of \n\line 86.2 that property must be redetermined at the time when its use is \n\line 86.3 changed as if the property had originally been classified in the \n\line 86.4 same class in which it is classified after its use is changed. \n\line 86.5 (c) The amount to be added to the original net tax capacity \n\line 86.6 of the district as a result of previously tax exempt real \n\line 86.7 property within the district becoming taxable equals the net tax \n\line 86.8 capacity of the real property as most recently assessed pursuant \n\line 86.9 to section 273.18 or, if that assessment was made more than one \n\line 86.10 year prior to the date of title transfer rendering the property \n\line 86.11 taxable, the net tax capacity assessed by the assessor at the \n\line 86.12 time of the transfer. If improvements are made to tax exempt \n\line 86.13 property after certification of the district and before the \n\line 86.14 parcel becomes taxable, the assessor shall, at the request of \n\line 86.15 the authority, separately assess the estimated market value of \n\line 86.16 the improvements. If the property becomes taxable, the county \n\line 86.17 auditor shall add to original net tax capacity, the net tax \n\line 86.18 capacity of the parcel, excluding the separately assessed \n\line 86.19 improvements. If substantial taxable improvements were made to \n\line 86.20 a parcel after certification of the district and if the property \n\line 86.21 later becomes tax exempt, in whole or part, as a result of the \n\line 86.22 authority acquiring the property through foreclosure or exercise \n\line 86.23 of remedies under a lease or other revenue agreement or as a \n\line 86.24 result of tax forfeiture, the amount to be added to the original \n\line 86.25 net tax capacity of the district as a result of the property \n\line 86.26 again becoming taxable is the amount of the parcel's value that \n\line 86.27 was included in original net tax capacity when the parcel was \n\line 86.28 first certified. The amount to be added to the original net tax \n\line 86.29 capacity of the district as a result of enlargements equals the \n\line 86.30 net tax capacity of the added real property as most recently \n\line 86.31 certified by the commissioner of revenue as of the date of \n\line 86.32 modification of the tax increment financing plan pursuant to \n\line 86.33 section 469.175, subdivision 4. \n\line 86.34 (d) For districts approved under section 469.175, \n\line 86.35 subdivision 3, or parcels added to existing districts after May \n\line 86.36 1, 1988, if the net tax capacity of a property increases because \n\line 87.1 the property no longer qualifies under the Minnesota \n\line 87.2 Agricultural Property Tax Law, section 273.111; the Minnesota \n\line 87.3 Open Space Property Tax Law, section 273.112; or the \n\line 87.4 Metropolitan Agricultural Preserves Act, chapter 473H, or \n\line 87.5 because platted, unimproved property is improved or three years \n\line 87.6 pass after approval of the plat under section 273.11, \n\line 87.7 subdivision 1, the increase in net tax capacity must be added to \n\line 87.8 the original net tax capacity. \n\line 87.9 (e) The amount to be subtracted from the original net tax \n\line 87.10 capacity of the district as a result of previously taxable real \n\line 87.11 property within the district becoming tax exempt, or a reduction \n\line 87.12 in the geographic area of the district, shall be the amount of \n\line 87.13 original net tax capacity initially attributed to the property \n\line 87.14 becoming tax exempt or being removed from the district. If the \n\line 87.15 net tax capacity of property located within the tax increment \n\line 87.16 financing district is reduced by reason of a court-ordered \n\line 87.17 abatement, stipulation agreement, voluntary abatement made by \n\line 87.18 the assessor or auditor or by order of the commissioner of \n\line 87.19 revenue, the reduction shall be applied to the original net tax \n\line 87.20 capacity of the district when the property upon which the \n\line 87.21 abatement is made has not been improved since the date of \n\line 87.22 certification of the district and to the captured net tax \n\line 87.23 capacity of the district in each year thereafter when the \n\line 87.24 abatement relates to improvements made after the date of \n\line 87.25 certification. The county auditor may specify reasonable form \n\line 87.26 and content of the request for certification of the authority \n\line 87.27 and any modification thereof pursuant to section 469.175, \n\line 87.28 subdivision 4. \n\line 87.29 (f) If a parcel of property contained a substandard \n\line 87.30 building that was demolished or removed and if the authority \n\line 87.31 elects to treat the parcel as occupied by a substandard building \n\line 87.32 under section 469.174, subdivision 10, paragraph (b), the \n\line 87.33 auditor shall certify the original net tax capacity of the \n\line 87.34 parcel using the greater of (1) the current net tax capacity of \n\line 87.35 the parcel, or (2) the estimated market value of the parcel for \n\line 87.36 the year in which the building was demolished or removed, but \n\line 88.1 applying the class rates for the current year. \n\line 88.2 {\ul (g) For a redevelopment district qualifying under section} \n\line 88.3 {\ul 469.174, subdivision 10, paragraph (a), clause (4), as a} \n\line 88.4 {\ul qualified disaster area, the auditor shall certify the value of} \n\line 88.5 {\ul the land as the original tax capacity for any parcel in the} \n\line 88.6 {\ul district that contains a building that suffered substantial} \n\line 88.7 {\ul damage as a result of the disaster or emergency.} \n\line 88.8 [EFFECTIVE DATE.] {\ul This section is effective for districts} \n\line 88.9 {\ul for which the request for certification is made after the day} \n\line 88.10 {\ul following final enactment.} \n\line 88.11 Sec. 11. Minnesota Statutes 2002, section 469.1792, is \n\line 88.12 amended to read: \n\line 88.13 469.1792 [SPECIAL {\strike DEFICIT} AUTHORITY.] \n\line 88.14 Subdivision 1. [SCOPE.] This section applies only to an \n\line 88.15 authority with a preexisting district for which: \n\line 88.16 (1) the increments from the district were insufficient to \n\line 88.17 pay preexisting obligations as a result of the class rate \n\line 88.18 changes or the elimination of the state-determined general \n\line 88.19 education property tax levy under this act, or both; or \n\line 88.20 (2)(i) the development authority has a binding contract \n\line 88.21 with a person requiring the authority to pay to the person an \n\line 88.22 amount that may not exceed the increment from the district or a \n\line 88.23 specific development within the district; and \n\line 88.24 (ii) the authority is unable to pay the full amount under \n\line 88.25 the contract from the pledged increments or other increments \n\line 88.26 from the district that would have been due if the class rate \n\line 88.27 changes or elimination of the state-determined general education \n\line 88.28 property tax levy or both had not been made under Laws 2001, \n\line 88.29 First Special Session chapter 5{\ul ;} \n\line 88.30 {\ul (3) the authority amends its tax increment financing plan} \n\line 88.31 {\ul to establish an affordable housing account to which increments} \n\line 88.32 {\ul are pledged; or} \n\line 88.33 {\ul (4) the authority amends its tax increment financing plan} \n\line 88.34 {\ul to establish a hazardous substance, pollutant, or contaminant} \n\line 88.35 {\ul remediation account to which increments are pledged}. \n\line 88.36 Subd. 2. [DEFINITIONS.] (a) For purposes of this section, \n\line 89.1 the following terms have the meanings given. \n\line 89.2 (b) {\ul "Affordable housing account" means an account in which} \n\line 89.3 {\ul increment is deposited solely for affordable housing activities} \n\line 89.4 {\ul as defined in section 469.174, subdivision 11.} \n\line 89.5 {\ul (c) "Hazardous substance, pollutant, or contaminant} \n\line 89.6 {\ul remediation account" means an account in which increment is} \n\line 89.7 {\ul deposited solely for removal or remediation activities described} \n\line 89.8 {\ul in section 469.174, subdivisions 16 to 19.} \n\line 89.9 {\ul (d)} "Preexisting district" means a tax increment financing \n\line 89.10 district for which the request for certification was made before \n\line 89.11 August 1, 2001. \n\line 89.12 {\strike (c)} {\ul (e)} "Preexisting obligation" means a bond or binding \n\line 89.13 contract that: \n\line 89.14 (1) was issued or approved before August 1, 2001, or was \n\line 89.15 issued pursuant to a binding contract entered into before August \n\line 89.16 1, 2001; \n\line 89.17 (2) is secured by increments from a preexisting district. \n\line 89.18 Subd. 3. [ACTIONS AUTHORIZED.] (a) An authority with a \n\line 89.19 district qualifying under this section may take {\strike either or both} \n\line 89.20 {\ul any or all} of the following actions for any or all of its \n\line 89.21 preexisting districts: \n\line 89.22 (1) the authority may elect that the original local tax \n\line 89.23 rate under section 469.177, subdivision 1a, does not apply to \n\line 89.24 the district; {\strike and} \n\line 89.25 (2) the authority may elect the fiscal disparities \n\line 89.26 contribution will be computed under section 469.177, subdivision \n\line 89.27 3, paragraph (a), regardless of the election that was made for \n\line 89.28 the district{\ul ; or} \n\line 89.29 {\ul (3) the authority may elect to extend the duration of the} \n\line 89.30 {\ul district by up to eight additional years beyond the duration} \n\line 89.31 {\ul limit on the collection of increment under section 469.176,} \n\line 89.32 {\ul subdivision 1b or 1e, or a special law applicable to the} \n\line 89.33 {\ul district}. \n\line 89.34 (b) The authority may take action under this subdivision \n\line 89.35 only after the municipality approves the action, by resolution, \n\line 89.36 after notice and public hearing in the manner provided under \n\line 90.1 section 469.175, subdivision 2. \n\line 90.2 {\ul (c) The additional increment that may be collected as a} \n\line 90.3 {\ul result of actions taken under this section and any increments} \n\line 90.4 {\ul transferred to the district under section 469.1763, subdivision} \n\line 90.5 {\ul 6, is limited to the lesser of:} \n\line 90.6 {\ul (1) the amount the authority is obligated to pay under} \n\line 90.7 {\ul preexisting obligations out of the increments from the district} \n\line 90.8 {\ul that result in application of this section under subdivision 1;} \n\line 90.9 {\ul or} \n\line 90.10 {\ul (2) an amount estimated to represent the difference between} \n\line 90.11 {\ul the increment that would have been collected if the class rate} \n\line 90.12 {\ul changes and elimination of the state-determined general} \n\line 90.13 {\ul education property tax levy had not been made under Laws 2001,} \n\line 90.14 {\ul First Special Session chapter 5, for the term of the district} \n\line 90.15 {\ul under general law, and the actual increments collected for the} \n\line 90.16 {\ul term of the district.} \n\line 90.17 {\ul Subd. 4.} [EXPENDITURES FROM AFFORDABLE HOUSING \n\line 90.18 ACCOUNTS.] {\ul Increment from an affordable housing account may be} \n\line 90.19 {\ul spent by an authority anywhere within its area of operation.} \n\line 90.20 {\ul Notwithstanding the definition of a project under section} \n\line 90.21 {\ul 469.174, increments may be spent to assist housing that meets} \n\line 90.22 {\ul the requirements under section 469.1761. The limitation imposed} \n\line 90.23 {\ul by section 469.1763, subdivision 2, does not apply to any} \n\line 90.24 {\ul transfers of increment to the affordable housing account to the} \n\line 90.25 {\ul extent that the amount transferred to the account under this} \n\line 90.26 {\ul subdivision does not exceed ten percent of the revenue derived} \n\line 90.27 {\ul from tax increments paid by properties in the district in the} \n\line 90.28 {\ul year.} \n\line 90.29 {\ul Subd. 5.} [EXPENDITURES FROM HAZARDOUS SUBSTANCE, \n\line 90.30 POLLUTANT, OR CONTAMINANT REMEDIATION ACCOUNT.] {\ul Increment from a} \n\line 90.31 {\ul hazardous substance, pollutant, or contaminant remediation} \n\line 90.32 {\ul account may be spent by an authority anywhere within its area of} \n\line 90.33 {\ul operation. Notwithstanding the definition of a project under} \n\line 90.34 {\ul section 469.174, increments may be expended to remediation and} \n\line 90.35 {\ul removal activities that meet the requirements of section} \n\line 90.36 {\ul 469.176, subdivision 4b or 4e. The limitation imposed by} \n\line 91.1 {\ul section 469.1763, subdivision 2, does not apply to any transfers} \n\line 91.2 {\ul of increment to the hazardous substance, pollutant, or} \n\line 91.3 {\ul contaminant remediation account to the extent that the amount} \n\line 91.4 {\ul transferred to the account under this subdivision does not} \n\line 91.5 {\ul exceed ten percent of the revenue derived from tax increments} \n\line 91.6 {\ul paid by properties in the district in the year.} \n\line 91.7 [EFFECTIVE DATE.] {\ul This section is effective for actions} \n\line 91.8 {\ul taken and resolutions approved after June 30, 2003.} \n\line 91.9 Sec. 12. Laws 1967, chapter 558, section 1, subdivision 5, \n\line 91.10 as amended by Laws 1979, chapter 135, section 1, and Laws 1985, \n\line 91.11 chapter 98, section 2, is amended to read: \n\line 91.12 Subd. 5. Promotion of tourist, agricultural and industrial \n\line 91.13 developments. The amount to be spent annually for the purposes \n\line 91.14 of this subdivision shall not exceed {\strike one dollar} {\ul five dollars} per \n\line 91.15 capita of the county's population. \n\line 91.16 [EFFECTIVE DATE.] \n\line 91.17 {\ul This section is effective the day after the governing body} \n\line 91.18 {\ul of Beltrami county and its chief clerical officer timely} \n\line 91.19 {\ul complete their compliance with Minnesota Statutes, section} \n\line 91.20 {\ul 645.021, subdivisions 2 and 3.} \n\line 91.21 Sec. 13. Laws 1978, chapter 464, section 1, is amended to \n\line 91.22 read: \n\line 91.23 Section 1. [ANOKA COUNTY; HOUSING AND REDEVELOPMENT.] \n\line 91.24 Subdivision 1. There is created in the county of Anoka a \n\line 91.25 public body corporate and politic, to be known as the Anoka \n\line 91.26 county housing and redevelopment authority, having all of the \n\line 91.27 powers and duties of a housing and redevelopment authority under \n\line 91.28 the provisions of the municipal housing and redevelopment act, \n\line 91.29 Minnesota Statutes, {\strike Section 462.411 to 462.711} {\ul sections 469.001} \n\line 91.30 {\ul to 469.047}. For the purposes of applying the provisions of the \n\line 91.31 municipal housing and redevelopment act to Anoka county, the \n\line 91.32 county has all of the powers and duties of a municipality, the \n\line 91.33 county board has all of the powers and duties of a governing \n\line 91.34 body, the chairman of the county board has all of the powers and \n\line 91.35 duties of a mayor, and the area of operation includes the area \n\line 91.36 within the territorial boundaries of the county. \n\line 92.1 Subd. 2. This section shall not limit or restrict any \n\line 92.2 existing housing and redevelopment authority or prevent a \n\line 92.3 municipality from creating an authority. {\strike The county shall not} \n\line 92.4 {\strike exercise jurisdiction in any municipality where a municipal} \n\line 92.5 {\strike housing and redevelopment authority is established.} If a \n\line 92.6 municipal housing and redevelopment authority requests the Anoka \n\line 92.7 county housing and redevelopment authority to handle the housing \n\line 92.8 duties of the municipal authority, the Anoka county housing and \n\line 92.9 redevelopment authority shall act and have exclusive \n\line 92.10 jurisdiction for housing in the municipality. A transfer of \n\line 92.11 duties relating to housing shall not transfer any duties \n\line 92.12 relating to redevelopment. \n\line 92.13 {\ul Subd. 3.} [TAXING DISTRICT.] {\ul The taxing district of the} \n\line 92.14 {\ul Anoka county housing and redevelopment authority shall include} \n\line 92.15 {\ul all cities and towns within Anoka county, except that a city may} \n\line 92.16 {\ul limit its participation as provided in this subdivision. The} \n\line 92.17 {\ul Anoka county board shall notify all cities and towns located} \n\line 92.18 {\ul within Anoka county if it adopts a resolution granting economic} \n\line 92.19 {\ul development authority powers to the Anoka county housing and} \n\line 92.20 {\ul redevelopment authority under Minnesota Statutes, section} \n\line 92.21 {\ul 469.1083, subdivision 1. Within 12 months following the Anoka} \n\line 92.22 {\ul county board's adoption of the resolution, a city may adopt a} \n\line 92.23 {\ul resolution requesting limited participation. Such limited} \n\line 92.24 {\ul participation shall be effective only if each of the following} \n\line 92.25 {\ul criteria are met:} \n\line 92.26 {\ul (1) the city has created a housing and redevelopment} \n\line 92.27 {\ul authority prior to December 13, 1994;} \n\line 92.28 {\ul (2) the city has not transferred jurisdiction for housing} \n\line 92.29 {\ul to the Anoka county housing and redevelopment authority under} \n\line 92.30 {\ul subdivision 2; and} \n\line 92.31 {\ul (3) the Anoka county housing and redevelopment authority} \n\line 92.32 {\ul levy within the city is not pledged for the repayment of bonds} \n\line 92.33 {\ul or other forms of indebtedness.} \n\line 92.34 {\ul The levy of the Anoka county housing and redevelopment} \n\line 92.35 {\ul authority within a city with limited participation must not} \n\line 92.36 {\ul exceed 40 percent of the maximum levy allowed by law. The Anoka} \n\line 93.1 {\ul county housing and redevelopment authority shall not undertake a} \n\line 93.2 {\ul housing project, a housing development project, a redevelopment} \n\line 93.3 {\ul project, or an economic development project within the} \n\line 93.4 {\ul boundaries of a city with limited participation. A city with} \n\line 93.5 {\ul limited participation may, at any time, adopt a resolution} \n\line 93.6 {\ul revoking its limited participation status.} \n\line 93.7 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 93.8 {\ul the governing body of Anoka county and its chief clerical} \n\line 93.9 {\ul officer timely complete their compliance with Minnesota} \n\line 93.10 {\ul Statutes, section 645.021, subdivisions 2 and 3.} \n\line 93.11 Sec. 14. [DEFINITIONS.] \n\line 93.12 {\ul Subdivision 1.} [DEFINITIONS.] {\ul For the purposes of sections} \n\line 93.13 {\ul 14 to 20, the terms defined in this section have the following} \n\line 93.14 {\ul meanings.} \n\line 93.15 {\ul Subd. 2.} [LAKES AREA ECONOMIC DEVELOPMENT \n\line 93.16 AUTHORITY.] {\ul "Lakes area economic development authority" or} \n\line 93.17 {\ul "authority" means the lakes area economic authority established} \n\line 93.18 {\ul as provided in section 15.} \n\line 93.19 {\ul Subd. 3.} [PERSON.] {\ul "Person" means an individual,} \n\line 93.20 {\ul partnership, corporation, cooperative, or other organization or} \n\line 93.21 {\ul entity, public or private.} \n\line 93.22 {\ul Subd. 4.} [MEMBER.] {\ul "Member" means the city of Alexandria} \n\line 93.23 {\ul or Garfield or the township of Alexandria or La Grand, or any} \n\line 93.24 {\ul other municipality, the geographic area of which is included} \n\line 93.25 {\ul within the jurisdiction of the authority.} \n\line 93.26 {\ul Subd. 5.} [MUNICIPALITY.] {\ul "Municipality" means a statutory} \n\line 93.27 {\ul or home rule charter city or town located in Douglas county.} \n\line 93.28 Sec. 15. [LAKES AREA ECONOMIC DEVELOPMENT AUTHORITY.] \n\line 93.29 {\ul Subdivision 1.} [ESTABLISHMENT.] {\ul A lakes area economic} \n\line 93.30 {\ul development authority with jurisdiction over the geographic area} \n\line 93.31 {\ul of its members is established as a public corporation and} \n\line 93.32 {\ul political subdivision of the state with perpetual succession and} \n\line 93.33 {\ul all the rights, powers, privileges, immunities, and duties that} \n\line 93.34 {\ul may be validly granted to or imposed upon a municipal} \n\line 93.35 {\ul corporation, as provided in sections 14 to 20.} \n\line 93.36 {\ul Subd. 2.} [BOARD OF COMMISSIONERS.] {\ul The authority is} \n\line 94.1 {\ul governed by a board of commissioners to be selected as follows:} \n\line 94.2 {\ul the mayor of each member city, and the chair of the town board} \n\line 94.3 {\ul of each member town shall appoint one commissioner, subject to} \n\line 94.4 {\ul the approval of the respective city council or town board. The} \n\line 94.5 {\ul terms of the commissioner are as provided in subdivision 5.} \n\line 94.6 {\ul Subd. 3.} [TIME LIMITS FOR SELECTION, ALTERNATIVE \n\line 94.7 APPOINTMENT BY DISTRICT JUDGE.] {\ul The initial appointment of} \n\line 94.8 {\ul commissioners must be made no later than 60 days after sections} \n\line 94.9 {\ul 14 to 20 become effective. Subsequent appointments must be made} \n\line 94.10 {\ul within 60 days before the expiration of a term in the same} \n\line 94.11 {\ul manner as the predecessor was selected. A vacancy on the board} \n\line 94.12 {\ul must be filled within 60 days after it occurs. If a selection} \n\line 94.13 {\ul is not made within the prescribed time, the chief judge of the} \n\line 94.14 {\ul seventh judicial district of the Minnesota district court on} \n\line 94.15 {\ul application by an interested person shall appoint an eligible} \n\line 94.16 {\ul person to the board.} \n\line 94.17 {\ul Subd. 4.} [VACANCIES.] {\ul If a vacancy occurs in the office of} \n\line 94.18 {\ul commissioner, the vacancy must be filled for the unexpired term} \n\line 94.19 {\ul in a like manner as provided for selection of the commissioner} \n\line 94.20 {\ul who vacated the office. The office must be considered vacant} \n\line 94.21 {\ul under the conditions specified in Minnesota Statutes, section} \n\line 94.22 {\ul 351.02.} \n\line 94.23 {\ul Subd. 5.} [TERMS OF OFFICE.] {\ul The terms of the initial} \n\line 94.24 {\ul appointees to the board of commissioners are for three, four,} \n\line 94.25 {\ul five, and six years and must be established by lot among the} \n\line 94.26 {\ul initial four commissioners. The mayor or town board chair of} \n\line 94.27 {\ul any new member added under section 18 shall designate the term,} \n\line 94.28 {\ul not to exceed six years, of the first commissioner selected to} \n\line 94.29 {\ul represent the member. Succeeding terms of all commissioners are} \n\line 94.30 {\ul six years, except that each commissioner serves until a} \n\line 94.31 {\ul successor has been duly selected and qualified.} \n\line 94.32 {\ul Subd. 6.} [REMOVAL.] {\ul A commissioner may be removed by the} \n\line 94.33 {\ul unanimous vote of the appointing governing body, with or without} \n\line 94.34 {\ul cause.} \n\line 94.35 {\ul Subd. 7.} [QUALIFICATIONS.] {\ul A commissioner may, but need} \n\line 94.36 {\ul not, be a resident of the territory of the member appointing} \n\line 95.1 {\ul that commissioner.} \n\line 95.2 {\ul Subd. 8.} [COMPENSATION.] {\ul A commissioner must be paid a per} \n\line 95.3 {\ul diem compensation for attending a regular or special meeting in} \n\line 95.4 {\ul an amount determined by the board. A commissioner must be} \n\line 95.5 {\ul reimbursed for all reasonable expenses incurred in the} \n\line 95.6 {\ul performance of the commissioner's duties as determined by the} \n\line 95.7 {\ul board.} \n\line 95.8 Sec. 16. [POWERS; APPLICATION OF EDA LAW.] \n\line 95.9 {\ul Subdivision 1.} [USE OF EDA POWERS.] {\ul Except as otherwise} \n\line 95.10 {\ul provided in sections 14 to 20, the authority may exercise any of} \n\line 95.11 {\ul the powers of an economic development authority (EDA) provided} \n\line 95.12 {\ul by Minnesota Statutes, sections 469.090 to 469.1082, and for} \n\line 95.13 {\ul this purpose the term "city" means a member. Minnesota} \n\line 95.14 {\ul Statutes, sections 469.096 to 469.101, 469.103 to 469.106, and} \n\line 95.15 {\ul 469.108 to 469.1081, apply to the authority, except that the} \n\line 95.16 {\ul authority's fiscal year is the calendar year.} \n\line 95.17 {\ul Subd. 2.} [LAW THAT IS NOT APPLICABLE.] {\ul The provisions in:} \n\line 95.18 {\ul (1) Minnesota Statutes, section 469.091, subdivision 1,} \n\line 95.19 {\ul expressly relating to:} \n\line 95.20 {\ul (i) the adoption of an enabling resolution;} \n\line 95.21 {\ul (ii) Minnesota Statutes, section 469.092; or} \n\line 95.22 {\ul (iii) housing and redevelopment authorities; and} \n\line 95.23 {\ul (2) Minnesota Statutes, sections 469.093, 469.095, 469.102,} \n\line 95.24 {\ul and 469.107;} \n\line 95.25 {\ul do not apply to the authority.} \n\line 95.26 Sec. 17. [MEMBERS MUST LEVY TAXES FOR AUTHORITY.] \n\line 95.27 {\ul (a) A member shall, at the request of the authority, levy a} \n\line 95.28 {\ul tax in any year for the benefit of the authority. The tax is,} \n\line 95.29 {\ul for each member, a pro rata portion of the total amount of tax} \n\line 95.30 {\ul requested by the authority based on the taxable market value} \n\line 95.31 {\ul within a member's jurisdiction, but in no event may the tax in} \n\line 95.32 {\ul any year exceed 0.01813 percent of taxable market value. For} \n\line 95.33 {\ul purposes of this section, "taxable market value" has the meaning} \n\line 95.34 {\ul as given in Minnesota Statutes, section 273.032.} \n\line 95.35 {\ul (b) The treasurer of each member city or town shall, within} \n\line 95.36 {\ul 15 days after receiving the property tax settlements from the} \n\line 96.1 {\ul county treasurer, pay to the treasurer of the authority the} \n\line 96.2 {\ul amount collected for this purpose. The money must be used by} \n\line 96.3 {\ul the authority for the purposes provided by sections 14 to 20.} \n\line 96.4 Sec. 18. [ADDITION AND WITHDRAWAL OF MEMBERS.] \n\line 96.5 {\ul Subdivision 1.} [ADDITIONS.] {\ul A municipality upon a} \n\line 96.6 {\ul resolution adopted by a four-fifths vote of all of its governing} \n\line 96.7 {\ul body may petition the authority to be included within the} \n\line 96.8 {\ul jurisdiction of the authority and, if approved by the authority,} \n\line 96.9 {\ul the geographic area of the municipality must be included within} \n\line 96.10 {\ul the jurisdiction of the authority and subject to the} \n\line 96.11 {\ul jurisdiction of the authority under sections 14 to 20.} \n\line 96.12 {\ul Subd. 2.} [WITHDRAWALS.] {\ul A municipality may withdraw from} \n\line 96.13 {\ul the authority by resolution of its governing body. The} \n\line 96.14 {\ul municipality must notify the board of commissioners of the} \n\line 96.15 {\ul authority of the withdrawal by providing a copy of the} \n\line 96.16 {\ul resolution at least two years in advance of the proposed} \n\line 96.17 {\ul withdrawal. Unless the authority and the withdrawing member} \n\line 96.18 {\ul agree otherwise by action of their governing bodies, the taxable} \n\line 96.19 {\ul property of the withdrawing member is subject to the property} \n\line 96.20 {\ul tax levy under section 17 for two taxes payable years following} \n\line 96.21 {\ul the notification of the withdrawal and the withdrawing member} \n\line 96.22 {\ul retains any rights, obligations, and liabilities obtained or} \n\line 96.23 {\ul incurred during its participation.} \n\line 96.24 Sec. 19. [CONTRACTS WITH NONPROFIT CORPORATIONS.] \n\line 96.25 {\ul The authority may enter into contracts with one or more} \n\line 96.26 {\ul nonprofit corporations to make, from funds of and under} \n\line 96.27 {\ul guidelines set by the authority, loans or grants for projects} \n\line 96.28 {\ul the authority may undertake under sections 14 to 20. Minnesota} \n\line 96.29 {\ul Statutes, section 465.719, does not apply so long as the} \n\line 96.30 {\ul nonprofit corporation is not described in Minnesota Statutes,} \n\line 96.31 {\ul section 465.719, subdivision 1, paragraph (b), item (i), or (b),} \n\line 96.32 {\ul item (ii).} \n\line 96.33 Sec. 20. [RELATION TO EXISTING LAWS.] \n\line 96.34 {\ul Sections 14 to 20 must be given full effect notwithstanding} \n\line 96.35 {\ul any law or charter that is inconsistent with them.} \n\line 96.36 Sec. 21. [LOCAL APPROVAL; EFFECTIVE DATE.] \n\line 97.1 {\ul Sections 14 to 20 are only effective as to all affected} \n\line 97.2 {\ul governing bodies on the day after the last of the governing} \n\line 97.3 {\ul bodies or town boards of the cities of Alexandria and Garfield} \n\line 97.4 {\ul and the towns of Alexandria and La Grand in Douglas county and} \n\line 97.5 {\ul the chief clerical officer of each of them timely complete their} \n\line 97.6 {\ul compliance with Minnesota Statutes, section 645.021,} \n\line 97.7 {\ul subdivisions 2 and 3.} \n\line 97.8 Sec. 22. [MULTICITY HOUSING AND REDEVELOPMENT AUTHORITY.] \n\line 97.9 {\ul Subdivision 1.} [ESTABLISHED.] {\ul A multicity authority is} \n\line 97.10 {\ul established that includes the cities of Arden Hills, Blaine,} \n\line 97.11 {\ul Circle Pines, Mounds View, New Brighton, Roseville, and} \n\line 97.12 {\ul Shoreview, to be known as the housing and redevelopment} \n\line 97.13 {\ul authority in and for the "I-35W Corridor Coalition."} \n\line 97.14 {\ul Subd. 2.} [PURPOSES.] {\ul In addition to the purposes set forth} \n\line 97.15 {\ul in Minnesota Statutes, sections 469.001 to 469.047, the purposes} \n\line 97.16 {\ul of the authority are:} \n\line 97.17 {\ul (1) to assist homeowners with flexible financing tools to} \n\line 97.18 {\ul complete home improvement projects;} \n\line 97.19 {\ul (2) to assist owners through the complex construction} \n\line 97.20 {\ul process when renovating their homes;} \n\line 97.21 {\ul (3) to assist individuals and families to become new} \n\line 97.22 {\ul homeowners;} \n\line 97.23 {\ul (4) to reduce the number of substandard housing units; and} \n\line 97.24 {\ul (5) to keep the community's housing stock usable for future} \n\line 97.25 {\ul generations.} \n\line 97.26 {\ul Subd. 3.} [DEFINITIONS.] {\ul (a) For the purposes of this} \n\line 97.27 {\ul section, the terms defined in Minnesota Statutes, sections} \n\line 97.28 {\ul 469.001 to 469.047, have the meanings given to them. The terms} \n\line 97.29 {\ul defined in this subdivision apply to this section unless the} \n\line 97.30 {\ul context indicates a different meaning.} \n\line 97.31 {\ul (b) "Area of operation" means the area within the} \n\line 97.32 {\ul territorial boundaries of the seven cities.} \n\line 97.33 {\ul (c) "Authority" means the housing and redevelopment} \n\line 97.34 {\ul authority in and for the I-35W Corridor Coalition.} \n\line 97.35 {\ul (d) "Multicounty authority" means the authority.} \n\line 97.36 {\ul (e) "State public body" means the authority.} \n\line 98.1 {\ul Subd. 4.} [COMMISSIONERS.] {\ul The authority consists of 14} \n\line 98.2 {\ul commissioners who shall be the mayor or acting mayor and the} \n\line 98.3 {\ul city manager, acting city manager, city administrator, or acting} \n\line 98.4 {\ul city administrator of each city in the authority. The term of} \n\line 98.5 {\ul the mayor or acting mayor is coterminous with the mayoral term} \n\line 98.6 {\ul of office. In the case of the city manager, acting city} \n\line 98.7 {\ul manager, city administrator, or acting city administrator, the} \n\line 98.8 {\ul term is five years from the date of appointment. Each} \n\line 98.9 {\ul commissioner has one vote.} \n\line 98.10 {\ul Subd. 5.} [LEVY AUTHORITY.] {\ul Subject to the consent by} \n\line 98.11 {\ul resolution of the cities in and for which a levy is created, the} \n\line 98.12 {\ul authority may levy a tax upon all taxable property within its} \n\line 98.13 {\ul area of operation in accordance with Minnesota Statutes, section} \n\line 98.14 {\ul 469.033, subdivision 6. Any tax levied under this section by} \n\line 98.15 {\ul the authority is not considered to be in addition to any tax} \n\line 98.16 {\ul previously levied or to be levied under Minnesota Statutes,} \n\line 98.17 {\ul section 469.033, subdivision 6. A levy by the authority under} \n\line 98.18 {\ul this section and a levy by any city under Minnesota Statutes,} \n\line 98.19 {\ul section 469.033, subdivision 6, may not together exceed the levy} \n\line 98.20 {\ul limits in that section. The levy is effective after the} \n\line 98.21 {\ul resolutions of consent have been adopted by all the cities in} \n\line 98.22 {\ul the area of operation.} \n\line 98.23 {\ul Subd. 6.} [APPROVAL OF EXISTING AUTHORITIES.] {\ul All projects,} \n\line 98.24 {\ul redevelopment plans, or levies must be approved by the cities in} \n\line 98.25 {\ul which they will be located, implemented, or levied. Approval of} \n\line 98.26 {\ul projects, redevelopment plans, or levies is not required by the} \n\line 98.27 {\ul county in which the affected city is located or by an existing} \n\line 98.28 {\ul housing and redevelopment authority or economic development} \n\line 98.29 {\ul authority of the affected city.} \n\line 98.30 {\ul Subd. 7.} [APPLICATION OF OTHER LAWS.] {\ul Provisions in} \n\line 98.31 {\ul Minnesota Statutes, sections 469.001 to 469.047, applicable to} \n\line 98.32 {\ul housing and redevelopment authorities also apply to the housing} \n\line 98.33 {\ul and redevelopment authority in and for the 1-35W Corridor} \n\line 98.34 {\ul Coalition subject to this section.} \n\line 98.35 {\ul Subd. 8.} [SUNSET.] {\ul This section expires on December 31,} \n\line 98.36 {\ul 2013.} \n\line 99.1 {\ul Subd. 9.} [EFFECTIVE DATE.] {\ul This section is effective for} \n\line 99.2 {\ul the cities of Arden Hills, Blaine, Circle Pines, Mounds View,} \n\line 99.3 {\ul New Brighton, Roseville, and Shoreview after the governing body} \n\line 99.4 {\ul and its chief clerical officer of the last of those seven cities} \n\line 99.5 {\ul timely complete their compliance with Minnesota Statutes,} \n\line 99.6 {\ul section 645.021, subdivisions 2 and 3.} \n\line 99.7 Sec. 23. [CITY OF DETROIT LAKES.] \n\line 99.8 {\ul Notwithstanding limitations on the amount of increment that} \n\line 99.9 {\ul may be pooled to eliminate a deficit under Minnesota Statutes,} \n\line 99.10 {\ul section 469.1763, subdivision 6, the city of Detroit Lakes may} \n\line 99.11 {\ul transfer available increments from any of its tax increment} \n\line 99.12 {\ul financing districts to TIF District 21-1 to be used to eliminate} \n\line 99.13 {\ul a deficit in the increment generated by TIF District 21-1 that} \n\line 99.14 {\ul is required to pay debt service on obligations issued for the} \n\line 99.15 {\ul district. The authority under this section applies to deficits} \n\line 99.16 {\ul occurring in 2000 and subsequent years.} \n\line 99.17 [EFFECTIVE DATE.] {\ul This section is effective upon approval} \n\line 99.18 {\ul by the governing body of Detroit Lakes and compliance with} \n\line 99.19 {\ul Minnesota Statutes, section 645.021.} \n\line 99.20 Sec. 24. [CITY OF DULUTH; EXPENDITURE OF TAX INCREMENTS.] \n\line 99.21 {\ul Subdivision 1.} [EXPENDITURES AUTHORIZED.] {\ul Notwithstanding} \n\line 99.22 {\ul Minnesota Statutes, section 469.1764, the Duluth economic} \n\line 99.23 {\ul development authority may expend up to $3,000,000 of tax} \n\line 99.24 {\ul increments collected from development district No. 3 on} \n\line 99.25 {\ul activities located outside the geographic boundaries of the} \n\line 99.26 {\ul district, subject to the conditions in this section.} \n\line 99.27 {\ul Subd. 2.} [LOCATION OF EXPENDITURES.] {\ul Tax increments must} \n\line 99.28 {\ul be spent within the area bounded by the following described} \n\line 99.29 {\ul lines:} \n\line 99.30 {\ul (1) to the north by a line described as follows: beginning} \n\line 99.31 {\ul at the intersection of the centerline of 29th Avenue West and} \n\line 99.32 {\ul the southerly line of West Michigan Street, thence southwesterly} \n\line 99.33 {\ul along the southerly line of West Michigan Street to the east} \n\line 99.34 {\ul limit of the DM&IR railway right-of-way; thence northwesterly} \n\line 99.35 {\ul along the easterly limit of the DM&IR railway right-of-way to} \n\line 99.36 {\ul the centerline of West Superior Street to its intersection with} \n\line 100.1 {\ul the centerline of Jenswold Street; thence southwesterly along} \n\line 100.2 {\ul the centerline of Jenswold Street to its intersection with the} \n\line 100.3 {\ul centerline of the Northern Pacific Railway Company's main line} \n\line 100.4 {\ul to St. Paul; thence southwesterly along the centerline of the} \n\line 100.5 {\ul Northern Pacific Railway Company's main line to St. Paul to its} \n\line 100.6 {\ul intersection with the extended centerline of 37th Avenue West;} \n\line 100.7 {\ul (2) to the west by a line described as follows: beginning} \n\line 100.8 {\ul at the intersection of the centerline of the Northern Pacific} \n\line 100.9 {\ul Railway Company's main line to St. Paul and the extended} \n\line 100.10 {\ul centerline of 37th Avenue West; then southeasterly along said} \n\line 100.11 {\ul extended centerline of 37th Avenue West to its intersection with} \n\line 100.12 {\ul the centerline of Interstate highway 35;} \n\line 100.13 {\ul (3) to the south by the centerline of Interstate highway} \n\line 100.14 {\ul 35; and} \n\line 100.15 {\ul (4) to the east by the centerline of 29th Avenue West.} \n\line 100.16 {\ul Subd. 3.} [LIMITATIONS ON USE.] {\ul All expenditures of tax} \n\line 100.17 {\ul increments permitted by this section must meet the requirements} \n\line 100.18 {\ul of Minnesota Statutes, section 469.176, subdivision 4j.} \n\line 100.19 [EFFECTIVE DATE.] {\ul This section is effective June 1, 2003.} \n\line 100.20 Sec. 25. [CITY OF DULUTH; TAX INCREMENT FINANCING \n\line 100.21 DISTRICT.] \n\line 100.22 {\ul Subdivision 1.} [AUTHORIZATION.] {\ul Upon approval of the} \n\line 100.23 {\ul governing body of the city of Duluth, the Duluth economic} \n\line 100.24 {\ul development authority may create an economic development tax} \n\line 100.25 {\ul increment financing district for aircraft related facilities.} \n\line 100.26 {\ul Except as otherwise provided in this section, the provisions of} \n\line 100.27 {\ul Minnesota Statutes, sections 469.174 to 469.179, apply to the} \n\line 100.28 {\ul district.} \n\line 100.29 {\ul Subd. 2.} [SPECIAL RULES.] {\ul (a) Notwithstanding the} \n\line 100.30 {\ul provisions of Minnesota Statutes, section 469.176, subdivision} \n\line 100.31 {\ul 1b, paragraph (a), clause (3), no tax increment shall be paid to} \n\line 100.32 {\ul the authority after 25 years after receipt by the authority of} \n\line 100.33 {\ul the first tax increment for the district authorized by this} \n\line 100.34 {\ul section.} \n\line 100.35 {\ul (b) The development in the district authorized by this} \n\line 100.36 {\ul section shall be deemed to be a purpose authorized under} \n\line 101.1 {\ul Minnesota Statutes, section 469.176, subdivision 4c, paragraph} \n\line 101.2 {\ul (a).} \n\line 101.3 {\ul (c) For purposes of Minnesota Statutes, section 469.177,} \n\line 101.4 {\ul subdivision 12, the applicable maximum duration limit of the} \n\line 101.5 {\ul district authorized by this section shall be as set forth in} \n\line 101.6 {\ul paragraph (a).} \n\line 101.7 [EFFECTIVE DATE.] {\ul This section is effective upon compliance} \n\line 101.8 {\ul with the requirements of Minnesota Statutes, sections 469.1782} \n\line 101.9 {\ul and 645.021.} \n\line 101.10 Sec. 26. [CITY OF MONTICELLO; EXTENSION OF TIME FOR \n\line 101.11 ACTIVITY IN A TAX INCREMENT FINANCING DISTRICT.] \n\line 101.12 {\ul The requirements of Minnesota Statutes, section 469.1763,} \n\line 101.13 {\ul subdivision 3, that activities must be undertaken within a} \n\line 101.14 {\ul five-year period from the date of certification of a tax} \n\line 101.15 {\ul increment financing district, must be considered to be met for} \n\line 101.16 {\ul the city of Monticello tax increment financing district no. 1-22} \n\line 101.17 {\ul if the activities are undertaken within ten years from the date} \n\line 101.18 {\ul of certification of the district.} \n\line 101.19 [EFFECTIVE DATE.] {\ul This section is effective upon compliance} \n\line 101.20 {\ul by the governing body of the city of Monticello with the} \n\line 101.21 {\ul requirements of Minnesota Statutes, section 645.021.} \n\line 101.22 Sec. 27. [CITY OF NEW HOPE; TAX INCREMENT FINANCING \n\line 101.23 DISTRICT.] \n\line 101.24 {\ul Subdivision 1.} [SPECIAL RULES.] {\ul (a) At the election of the} \n\line 101.25 {\ul city, upon adoption of the tax increment financing plan for a} \n\line 101.26 {\ul district or districts described in this section, the rules} \n\line 101.27 {\ul provided under this section apply to each such district.} \n\line 101.28 {\ul For purposes of this section, "district" means a} \n\line 101.29 {\ul redevelopment or soils condition tax increment financing} \n\line 101.30 {\ul district established by the city of New Hope or the economic} \n\line 101.31 {\ul development authority of the city within the following area:} \n\line 101.32 {\ul beginning at the intersection of Winnetka Avenue N. and the} \n\line 101.33 {\ul westerly extension of 58th Avenue N., east on the westerly} \n\line 101.34 {\ul extension of 58th Avenue N. to Sumter Avenue N., south on Sumter} \n\line 101.35 {\ul Avenue N. to Bass Lake Road, east on Bass Lake Road to the city} \n\line 101.36 {\ul boundaries of New Hope and Crystal, MN, south along that city} \n\line 102.1 {\ul boundary to St. Raphael Drive, west on St. Raphael Drive to} \n\line 102.2 {\ul Sumter Avenue N., south on Sumter Avenue N. to 53rd Avenue N.,} \n\line 102.3 {\ul west on 53rd Avenue N. to Winnetka Avenue N., north on Winnetka} \n\line 102.4 {\ul Avenue N. to 55th Avenue N., west on 55th Avenue N. to Zealand} \n\line 102.5 {\ul Avenue N., north on Zealand Avenue N. to Bass Lake Road, east on} \n\line 102.6 {\ul Bass Lake Road to Yukon Avenue N., north on Yukon Avenue N. to} \n\line 102.7 {\ul Meadow Lake Road E., east on Meadow Lake Road E. to the} \n\line 102.8 {\ul intersection with the west property line of New Hope golf} \n\line 102.9 {\ul course, south along the west property line of New Hope golf} \n\line 102.10 {\ul course to Bass Lake Road, east on Bass Lake Road to Winnetka} \n\line 102.11 {\ul Avenue N., north on Winnetka Avenue N. to the point of} \n\line 102.12 {\ul beginning. The total number of parcels that may be included} \n\line 102.13 {\ul within all such redevelopment or soils condition tax increment} \n\line 102.14 {\ul financing districts must not exceed 131 and the total acreage,} \n\line 102.15 {\ul including roads, easements, and rights-of-way, must not exceed} \n\line 102.16 {\ul 130 acres.} \n\line 102.17 {\ul (b) The five-year rule under Minnesota Statutes, section} \n\line 102.18 {\ul 469.1763, subdivision 3, applies as if the limit is nine years.} \n\line 102.19 {\ul (c) The limitations on expenditure of increment outside of} \n\line 102.20 {\ul the district under Minnesota Statutes, section 469.1763,} \n\line 102.21 {\ul subdivision 2, do not apply, provided that increments may only} \n\line 102.22 {\ul be expended on improvements or activities within the area} \n\line 102.23 {\ul identified in paragraph (a).} \n\line 102.24 {\ul (d) The requirement relating to the original local tax rate} \n\line 102.25 {\ul for the district under Minnesota Statutes, section 469.177,} \n\line 102.26 {\ul subdivision 1a, does not apply.} \n\line 102.27 {\ul (e) The requirements for qualifying a redevelopment} \n\line 102.28 {\ul district under Minnesota Statutes, section 469.174, subdivision} \n\line 102.29 {\ul 10, do not apply to the parcels identified as 08-118-21-22-0001,} \n\line 102.30 {\ul 08-118-21-33-0008, 08-118-21-33-0009, 08-118-21-33-0010,} \n\line 102.31 {\ul 08-118-21-33-0011, 08-118-21-33-0013, 08-118-21-33-0018,} \n\line 102.32 {\ul 08-118-21-33-0019, 08-118-21-33-0025, 08-118-21-33-0027,} \n\line 102.33 {\ul 08-118-21-33-0029, 08-118-21-33-0082, and 08-118-21-33-0087,} \n\line 102.34 {\ul which are deemed substandard for the purpose of qualifying the} \n\line 102.35 {\ul district as a redevelopment district.} \n\line 102.36 {\ul Subd. 2.} [EXPIRATION.] {\ul (a) The exception under subdivision} \n\line 103.1 {\ul 1, paragraph (c), from the limitations of Minnesota Statutes,} \n\line 103.2 {\ul section 469.1763, subdivision 2, expires 20 years after the} \n\line 103.3 {\ul receipt of the first increment from a district for which the} \n\line 103.4 {\ul city has elected that this section applies.} \n\line 103.5 {\ul (b) The authority to approve tax increment financing plans} \n\line 103.6 {\ul to establish a tax increment financing district subject to this} \n\line 103.7 {\ul section expires on December 31, 2013.} \n\line 103.8 {\ul Subd. 3.} [EFFECTIVE DATE.] {\ul This section is effective upon} \n\line 103.9 {\ul approval by the governing bodies of the city of New Hope and} \n\line 103.10 {\ul Hennepin county and upon compliance by the city with Minnesota} \n\line 103.11 {\ul Statutes, section 645.021, subdivision 3.} \n\line 103.12 Sec. 28. [CITY OF RICHFIELD; TAX INCREMENT FINANCING \n\line 103.13 DISTRICT.] \n\line 103.14 {\ul Subdivision 1.} [AUTHORIZATION.] {\ul The city of Richfield may} \n\line 103.15 {\ul create a tax increment financing district consisting of an area} \n\line 103.16 {\ul bordered by crosstown highway 62 on the north, 66th street on} \n\line 103.17 {\ul the south, trunk highway 77 on the east, and the east side of} \n\line 103.18 {\ul 16th avenue to the west. The city or its housing and} \n\line 103.19 {\ul redevelopment authority may be the authority for the purposes of} \n\line 103.20 {\ul Minnesota Statutes, sections 469.174 to 469.179.} \n\line 103.21 {\ul Subd. 2.} [DISTRICT IS REDEVELOPMENT DISTRICT.] {\ul The} \n\line 103.22 {\ul redevelopment tax increment district created pursuant to} \n\line 103.23 {\ul subdivision 1 is deemed to be a redevelopment district and is} \n\line 103.24 {\ul subject to Minnesota Statutes, sections 469.174 to 469.179,} \n\line 103.25 {\ul except that expenditures for activities as defined in Minnesota} \n\line 103.26 {\ul Statutes, section 469.1763, subdivision 1, paragraph (b),} \n\line 103.27 {\ul anywhere in the district are deemed to be the costs of} \n\line 103.28 {\ul correcting conditions that allow the designation of} \n\line 103.29 {\ul redevelopment districts pursuant to Minnesota Statutes, section} \n\line 103.30 {\ul 469.174, subdivision 10.} \n\line 103.31 [EFFECTIVE DATE.] {\ul This section is effective upon local} \n\line 103.32 {\ul approval by the city of Richfield in compliance with Minnesota} \n\line 103.33 {\ul Statutes, section 645.021.} \n\line 103.34 Sec. 29. [CITY OF ROSEVILLE; TAX INCREMENT FINANCING \n\line 103.35 DISTRICT.] \n\line 103.36 {\ul Subdivision 1.} [SPECIAL RULES.] {\ul (a) At the election of the} \n\line 104.1 {\ul city, upon adoption of the tax increment financing plan for a} \n\line 104.2 {\ul district or districts described in this section, the rules} \n\line 104.3 {\ul provided under this section apply to each such district.} \n\line 104.4 {\ul For purposes of this section, "district" means a} \n\line 104.5 {\ul redevelopment or soils condition tax increment financing} \n\line 104.6 {\ul district established by the city of Roseville or the economic} \n\line 104.7 {\ul development authority of the city within an area generally} \n\line 104.8 {\ul described as follows: from the Northwest corner of Section 4,} \n\line 104.9 {\ul Township 29, Range 23, Ramsey County, Minnesota, south 1,265} \n\line 104.10 {\ul feet along the centerline of Cleveland Avenue to the point of} \n\line 104.11 {\ul beginning, then easterly a distance of approximately 902 feet,} \n\line 104.12 {\ul then southerly 315 feet, then easterly 416 feet to the west} \n\line 104.13 {\ul right-of-way line of the 33 foot wide Prior Avenue, then} \n\line 104.14 {\ul southerly along that line approximately 602 feet to the} \n\line 104.15 {\ul intersection with a line running southwesterly approximately 790} \n\line 104.16 {\ul feet to a point along the centerline of County Road C-2 which is} \n\line 104.17 {\ul approximately 980 feet east of its intersection with the} \n\line 104.18 {\ul centerline of Cleveland Avenue, then southerly approximately 650} \n\line 104.19 {\ul feet, then easterly 35 feet, then southerly approximately 300} \n\line 104.20 {\ul feet, then easterly 240 feet, then southerly 270 feet, then} \n\line 104.21 {\ul easterly 580 feet, then north and easterly along an irregular} \n\line 104.22 {\ul line on the eastern boundary of Langton Lake a distance of 835} \n\line 104.23 {\ul feet, then easterly 2,346 feet along the south edge of platted} \n\line 104.24 {\ul and Oasis Park property, then southerly a distance of 2,101 feet} \n\line 104.25 {\ul to the south right-of-way of County Road C, then westerly along} \n\line 104.26 {\ul the south right-of-way a distance of approximately 4,210 feet to} \n\line 104.27 {\ul the intersection with the centerline of Cleveland Avenue, then} \n\line 104.28 {\ul northerly along the Cleveland Avenue centerline a distance of} \n\line 104.29 {\ul approximately 4,371 feet to the point of beginning. Also} \n\line 104.30 {\ul included are the additional connected public rights-of-way and} \n\line 104.31 {\ul public lands as follows: the Terrace Drive right-of-way from} \n\line 104.32 {\ul the eastern boundary of the Business Park boundary, easterly} \n\line 104.33 {\ul approximately 1,000 feet to the intersection with the western} \n\line 104.34 {\ul right-of-way of Snelling Avenue; the County Road C right-of-way} \n\line 104.35 {\ul from the eastern boundary of the Business Park boundary,} \n\line 104.36 {\ul easterly approximately 1,080 feet to the intersection with the} \n\line 105.1 {\ul centerline of Snelling Avenue; and the area generally west of} \n\line 105.2 {\ul Cleveland Avenue between Cleveland Avenue and marked Interstate} \n\line 105.3 {\ul Highway 35W, from County Road C approximately 3,000 feet north,} \n\line 105.4 {\ul encompassing entry ramps, wetlands, and regional storm water} \n\line 105.5 {\ul storage ponds.} \n\line 105.6 {\ul (b) The five-year rule under Minnesota Statutes, section} \n\line 105.7 {\ul 469.1763, subdivision 3, applies as if the limit is nine years.} \n\line 105.8 {\ul (c) The limitations on expenditure of increment outside of} \n\line 105.9 {\ul the district under Minnesota Statutes, section 469.1763,} \n\line 105.10 {\ul subdivision 2, do not apply, provided that increments may only} \n\line 105.11 {\ul be expended on improvements or activities within the areas} \n\line 105.12 {\ul identified in paragraph (a).} \n\line 105.13 {\ul (d) The requirement relating to the original local tax rate} \n\line 105.14 {\ul for the district under Minnesota Statutes, section 469.177,} \n\line 105.15 {\ul subdivision 1a, does not apply.} \n\line 105.16 {\ul Subd. 2.} [APPLICATION OF OTHER LAWS.] {\ul All references in} \n\line 105.17 {\ul Minnesota Statutes to tax increment financing districts created} \n\line 105.18 {\ul and tax increments generated under Minnesota Statutes, sections} \n\line 105.19 {\ul 469.174 to 469.1799, apply subject to this section, provided} \n\line 105.20 {\ul that Minnesota Statutes, sections 469.174 to 469.1799, apply} \n\line 105.21 {\ul only to the extent specified in this section.} \n\line 105.22 {\ul Subd. 3.} [EXPIRATION.] {\ul (a) The exception under subdivision} \n\line 105.23 {\ul 1, paragraph (c), from the limitations of Minnesota Statutes,} \n\line 105.24 {\ul section 469.1763, subdivision 2, expires 20 years after the} \n\line 105.25 {\ul receipt of the first increment from a district for which the} \n\line 105.26 {\ul city has elected that this section applies.} \n\line 105.27 {\ul (b) The authority to approve tax increment financing plans} \n\line 105.28 {\ul to establish a tax increment financing district subject to this} \n\line 105.29 {\ul section expires on December 31, 2013.} \n\line 105.30 [EFFECTIVE DATE.] {\ul This section is effective upon approval} \n\line 105.31 {\ul by the governing bodies of the city of Roseville and Ramsey} \n\line 105.32 {\ul county and upon compliance by the the city with Minnesota} \n\line 105.33 {\ul Statutes, section 645.021, subdivision 3.} \n\line 105.34 Sec. 30. [CITY OF ST. MICHAEL; TAX INCREMENT FINANCING \n\line 105.35 DISTRICT.] \n\line 105.36 {\ul Subdivision 1.} [ESTABLISHMENT OF DISTRICT.] {\ul The city of St.}\n\line 106.1 {\ul Michael may establish a redevelopment tax increment financing} \n\line 106.2 {\ul district subject to Minnesota Statutes, sections 469.174 to} \n\line 106.3 {\ul 469.179, except as provided in this section. The district must} \n\line 106.4 {\ul be established within an area that includes the downtown and} \n\line 106.5 {\ul town center areas as designated by the city as well as all} \n\line 106.6 {\ul parcels adjacent to marked trunk highway 241 within the city.} \n\line 106.7 {\ul Subd. 2.} [SPECIAL RULES.] {\ul (a) Notwithstanding the} \n\line 106.8 {\ul requirements of Minnesota Statutes, section 469.174, subdivision} \n\line 106.9 {\ul 10, the district may be established and operated as a} \n\line 106.10 {\ul redevelopment district.} \n\line 106.11 {\ul (b) Notwithstanding the restrictions of Minnesota Statutes,} \n\line 106.12 {\ul sections 469.176, subdivisions 4 and 4j, and 469.1763,} \n\line 106.13 {\ul subdivision 2, revenues derived from tax increments from the} \n\line 106.14 {\ul district created under this section may be used to meet the cost} \n\line 106.15 {\ul of land acquisition, removal of buildings in the right-of-way} \n\line 106.16 {\ul acquisition area, and other costs incurred by the city of St.} \n\line 106.17 {\ul Michael in the expansion and improvement of marked trunk highway} \n\line 106.18 {\ul 241 within the city.} \n\line 106.19 {\ul (c) Minnesota Statutes, section 469.176, subdivision 5,} \n\line 106.20 {\ul does not apply to the district.} \n\line 106.21 [EFFECTIVE DATE.] {\ul This section is effective the day after} \n\line 106.22 {\ul the governing body of the city of St. Michael complies with} \n\line 106.23 {\ul Minnesota Statutes, section 645.021, subdivision 3.} \n\line 106.24 Sec. 31. [KANDIYOHI COUNTY AND CITY OF WILLMAR.] \n\line 106.25 {\ul Subdivision 1.} [POWERS.] {\ul Notwithstanding Minnesota} \n\line 106.26 {\ul Statutes, sections 469.090 and 469.1082, Kandiyohi county may} \n\line 106.27 {\ul exercise the powers of a city under Minnesota Statutes, sections} \n\line 106.28 {\ul 469.090 to 469.107. Kandiyohi county and the city of Willmar} \n\line 106.29 {\ul may enter into a joint powers agreement under Minnesota} \n\line 106.30 {\ul Statutes, section 471.59, to jointly or cooperatively exercise} \n\line 106.31 {\ul any of the powers common to both the county and the city under} \n\line 106.32 {\ul Minnesota Statutes, sections 469.090 to 469.107, in a manner to} \n\line 106.33 {\ul be determined by a majority of the Kandiyohi county board and} \n\line 106.34 {\ul the Willmar city council.} \n\line 106.35 {\ul Subd. 2.} [SPECIAL TAXING DISTRICT.] {\ul A joint powers entity} \n\line 106.36 {\ul created under this section is a political subdivision of the} \n\line 107.1 {\ul state and a special taxing district as defined by Minnesota} \n\line 107.2 {\ul Statutes, section 275.066, clause (24), with the power to adopt} \n\line 107.3 {\ul and certify a property tax levy to the county auditor.} \n\line 107.4 {\ul Subd. 3.} [EFFECTIVE DATE; NO LOCAL APPROVAL \n\line 107.5 REQUIRED.] {\ul Under Minnesota Statutes, section 645.023,} \n\line 107.6 {\ul subdivision 1, paragraph (a), no local approval of this section} \n\line 107.7 {\ul is required.} \n\line 107.8 [EFFECTIVE DATE.] {\ul This sections is effective the day after} \n\line 107.9 {\ul final enactment.} \n\line 107.10 Sec. 32. �CITY OF HOPKINS; TAX INCREMENT FINANCING \n\line 107.11 DISTRICT; EXTENSION OF FIVE-YEAR RULE.] \n\line 107.12 {\ul The requirements of Minnesota Statutes, section 469.1763,} \n\line 107.13 {\ul subdivision 3, that activities must be undertaken within a} \n\line 107.14 {\ul five-year period from the date of certification of tax increment} \n\line 107.15 {\ul financing district must be considered to be met for the city of} \n\line 107.16 {\ul Hopkins redevelopment tax increment district 2-11, if the} \n\line 107.17 {\ul activities are undertaken within ten years from the date of} \n\line 107.18 {\ul certification of the district.} \n\line 107.19 [EFFECTIVE DATE.] {\ul This section is effective upon compliance} \n\line 107.20 {\ul by the governing body of the city of Hopkins with the provisions} \n\line 107.21 {\ul of Minnesota Statutes, section 645.021.} \n\line 107.22 Sec. 33. [CITIES OF ELGIN, EYOTA, BYRON, AND ORONOCO; TAX \n\line 107.23 INCREMENT FINANCING DISTRICTS.] \n\line 107.24 {\ul Subdivision 1.} [AUTHORIZATION.] {\ul Notwithstanding the} \n\line 107.25 {\ul mileage limitation in Minnesota Statutes, section 469.174,} \n\line 107.26 {\ul subdivision 27, the cities of Elgin, Eyota, Byron, and Oronoco} \n\line 107.27 {\ul are deemed to be small cities for purposes of Minnesota} \n\line 107.28 {\ul Statutes, sections 469.174 to 469.1799, as long as they do not} \n\line 107.29 {\ul exceed the population limit in that section.} \n\line 107.30 {\ul Subd. 2.} [LOCAL APPROVAL.] {\ul This section is available for} \n\line 107.31 {\ul each of the cities of Elgin, Eyota, Byron, and Oronoco upon} \n\line 107.32 {\ul approval of that city's governing body and compliance with} \n\line 107.33 {\ul Minnesota Statutes, section 645.021, subdivisions 2 and 3.} \n\line 107.34 ARTICLE 5\n\line 107.35 PUBLIC FINANCE \n\line 107.36 Section 1. [37.31] [ISSUANCE OF BONDS.] \n\line 108.1 {\ul Subdivision 1.} [BONDING AUTHORITY.] {\ul The society may issue} \n\line 108.2 {\ul negotiable bonds in a principal amount that the society} \n\line 108.3 {\ul determines necessary to provide sufficient money for achieving} \n\line 108.4 {\ul its purposes, including the payment of interest on bonds of the} \n\line 108.5 {\ul society, the establishment of reserves to secure its bonds, the} \n\line 108.6 {\ul payment of fees to a third party providing credit enhancement,} \n\line 108.7 {\ul and the payment of all other expenditures of the society} \n\line 108.8 {\ul incident to and necessary or convenient to carry out its} \n\line 108.9 {\ul corporate purposes and powers. Bonds of the society may be} \n\line 108.10 {\ul issued as bonds or notes or in any other form authorized by} \n\line 108.11 {\ul law. The principal amount of bonds issued and outstanding under} \n\line 108.12 {\ul this section at any time may not exceed $20,000,000, excluding} \n\line 108.13 {\ul bonds for which refunding bonds or crossover refunding bonds} \n\line 108.14 {\ul have been issued.} \n\line 108.15 {\ul Subd. 2.} [REFUNDING OF BONDS.] {\ul The society may issue bonds} \n\line 108.16 {\ul to refund outstanding bonds of the society, to pay any} \n\line 108.17 {\ul redemption premiums on those bonds, and to pay interest accrued} \n\line 108.18 {\ul or to accrue to the redemption date next succeeding the date of} \n\line 108.19 {\ul delivery of the refunding bonds. The society may apply the} \n\line 108.20 {\ul proceeds of any refunding bonds to the purchase or payment at} \n\line 108.21 {\ul maturity of the bonds to be refunded, or to the redemption of} \n\line 108.22 {\ul outstanding bonds on the redemption date next succeeding the} \n\line 108.23 {\ul date of delivery of the refunding bonds and may, pending the} \n\line 108.24 {\ul application, place the proceeds in escrow to be applied to the} \n\line 108.25 {\ul purchase, retirement, or redemption of the bonds. Pending use,} \n\line 108.26 {\ul escrowed proceeds may be invested and reinvested in obligations} \n\line 108.27 {\ul issued or guaranteed by the state or the United States or by any} \n\line 108.28 {\ul agency or instrumentality of the state or the United States, or} \n\line 108.29 {\ul in certificates of deposit or time deposits secured in a manner} \n\line 108.30 {\ul determined by the society, maturing at a time appropriate to} \n\line 108.31 {\ul assure the prompt payment of the principal and interest and} \n\line 108.32 {\ul redemption premiums, if any, on the bonds to be refunded. The} \n\line 108.33 {\ul income realized on any investment may also be applied to the} \n\line 108.34 {\ul payment of the bonds to be refunded. After the terms of the} \n\line 108.35 {\ul escrow have been fully satisfied, any balance of the proceeds} \n\line 108.36 {\ul and any investment income may be returned to the society for use} \n\line 109.1 {\ul by it in any lawful manner. All refunding bonds issued under} \n\line 109.2 {\ul this subdivision must be issued and secured in the manner} \n\line 109.3 {\ul provided by resolution of the society.} \n\line 109.4 {\ul Subd. 3.} [KIND OF BONDS.] {\ul Bonds issued under this section} \n\line 109.5 {\ul must be negotiable investment securities within the meaning and} \n\line 109.6 {\ul for all purposes of the Uniform Commercial Code, subject only to} \n\line 109.7 {\ul the provisions of the bonds for registration. The bonds issued} \n\line 109.8 {\ul must be limited obligations of the society not secured by its} \n\line 109.9 {\ul full faith and credit and payable solely from specified sources} \n\line 109.10 {\ul or assets.} \n\line 109.11 {\ul Subd. 4.} [RESOLUTION AND TERMS OF SALE.] {\ul The bonds of the} \n\line 109.12 {\ul society must be authorized by a resolution or resolutions} \n\line 109.13 {\ul adopted by the society. The bonds must bear the date or dates,} \n\line 109.14 {\ul mature at the time or times, bear interest at a fixed or} \n\line 109.15 {\ul variable rate, including a rate varying periodically at the time} \n\line 109.16 {\ul or times and on the terms determined by the society, or any} \n\line 109.17 {\ul combination of fixed and variable rates, be in the} \n\line 109.18 {\ul denominations, be in the form, carry the registration} \n\line 109.19 {\ul privileges, be executed in the manner, be payable in lawful} \n\line 109.20 {\ul money of the United States, at the place or places within or} \n\line 109.21 {\ul without the state, and be subject to the terms of redemption or} \n\line 109.22 {\ul purchase before maturity as the resolutions or certificates} \n\line 109.23 {\ul provide. If, for any reason existing at the date of issue of} \n\line 109.24 {\ul the bonds or existing at the date of making or purchasing any} \n\line 109.25 {\ul loan or securities from the proceeds or after that date, the} \n\line 109.26 {\ul interest on the bonds is or becomes subject to federal income} \n\line 109.27 {\ul taxation, this fact does not affect the validity or the} \n\line 109.28 {\ul provisions made for the security of the bonds. The society may} \n\line 109.29 {\ul make covenants and take or have taken actions that are in its} \n\line 109.30 {\ul judgment necessary or desirable to comply with conditions} \n\line 109.31 {\ul established by federal law or regulations for the exemption of} \n\line 109.32 {\ul interest on its obligations. The society may refrain from} \n\line 109.33 {\ul compliance with those conditions if in its judgment this would} \n\line 109.34 {\ul serve the purposes and policies set forth in this chapter with} \n\line 109.35 {\ul respect to any particular issue of bonds, unless this would} \n\line 109.36 {\ul violate covenants made by the society. The maximum maturity of} \n\line 110.1 {\ul a bond, whether or not issued for the purpose of refunding, must} \n\line 110.2 {\ul be 30 years from its date. The bonds of the society may be sold} \n\line 110.3 {\ul at public or private sale, at a price or prices determined by} \n\line 110.4 {\ul the society; provided that:} \n\line 110.5 {\ul (1) the aggregate price at which an issue of bonds is} \n\line 110.6 {\ul initially offered by underwriters to investors, as stated in the} \n\line 110.7 {\ul authority's official statement with respect to the offering,} \n\line 110.8 {\ul must not exceed by more than three percent the aggregate price} \n\line 110.9 {\ul paid by the underwriters to the society at the time of delivery;} \n\line 110.10 {\ul (2) the commission paid by the society to an underwriter} \n\line 110.11 {\ul for placing an issue of bonds with investors must not exceed} \n\line 110.12 {\ul three percent of the aggregate price at which the issue is} \n\line 110.13 {\ul offered to investors as stated in the society's offering} \n\line 110.14 {\ul statement; and} \n\line 110.15 {\ul (3) the spread or commission must be an amount determined} \n\line 110.16 {\ul by the society to be reasonable in light of the risk assumed and} \n\line 110.17 {\ul the expenses of issuance, if any, required to be paid by the} \n\line 110.18 {\ul underwriters.} \n\line 110.19 {\ul Subd. 5.} [EXEMPTION.] {\ul The notes and bonds of the society} \n\line 110.20 {\ul are not subject to sections 16C.03, subdivision 4, and 16C.05.} \n\line 110.21 {\ul Subd. 6.} [RESERVES; FUNDS; ACCOUNTS.] {\ul The society may} \n\line 110.22 {\ul establish reserves, funds, or accounts necessary to carry out} \n\line 110.23 {\ul the purposes of the society or to comply with any agreement made} \n\line 110.24 {\ul by or any resolution passed by the society.} \n\line 110.25 Sec. 2. [37.32] [TENDER OPTION.] \n\line 110.26 {\ul An obligation may be issued giving its owner the right to} \n\line 110.27 {\ul tender or the society to demand tender of the obligation to the} \n\line 110.28 {\ul society or another person designated by it, for purchase at a} \n\line 110.29 {\ul specified time or times, if the society has first entered into} \n\line 110.30 {\ul an agreement with a suitable financial institution obligating} \n\line 110.31 {\ul the financial institution to provide funds on a timely basis for} \n\line 110.32 {\ul purchase of bonds tendered. The obligation is not considered to} \n\line 110.33 {\ul mature on any tender date and the purchase of a tendered} \n\line 110.34 {\ul obligation is not considered a payment or discharge of the} \n\line 110.35 {\ul obligation by the society. Obligations tendered for purchase} \n\line 110.36 {\ul may be remarketed by or on behalf of the society or another} \n\line 111.1 {\ul purchaser. The society may enter into agreements it considers} \n\line 111.2 {\ul appropriate to provide for the purchase and remarketing of} \n\line 111.3 {\ul tendered obligations, including:} \n\line 111.4 {\ul (1) provisions under which undelivered obligations may be} \n\line 111.5 {\ul considered tendered for purchase and new obligations may be} \n\line 111.6 {\ul substituted for them;} \n\line 111.7 {\ul (2) provisions for the payment of charges of tender agents,} \n\line 111.8 {\ul remarketing agents, and financial institutions extending lines} \n\line 111.9 {\ul of credit or letters of credit assuring repurchase; and} \n\line 111.10 {\ul (3) provisions for reimbursement of advances under letters} \n\line 111.11 {\ul of credit that may be paid from the proceeds of the obligations} \n\line 111.12 {\ul or from tax and other revenues appropriated for the payment and} \n\line 111.13 {\ul security of the obligations and similar or related provisions.} \n\line 111.14 Sec. 3. [37.33] [BOND FUND.] \n\line 111.15 {\ul Subdivision 1.} [CREATION AND CONTENTS.] {\ul The society may} \n\line 111.16 {\ul establish a special fund or funds for the security of one or} \n\line 111.17 {\ul more or all series of its bonds. The funds must be known as} \n\line 111.18 {\ul debt service reserve funds. The society may pay into each debt} \n\line 111.19 {\ul service reserve fund:} \n\line 111.20 {\ul (1) the proceeds of sale of bonds to the extent provided in} \n\line 111.21 {\ul the resolution or indenture authorizing the issuance of them;} \n\line 111.22 {\ul (2) money directed to be transferred by the society to the} \n\line 111.23 {\ul debt service reserve fund; and} \n\line 111.24 {\ul (3) other money made available to the society from any} \n\line 111.25 {\ul other source only for the purpose of the fund.} \n\line 111.26 {\ul Subd. 2.} [USE OF FUNDS.] {\ul Except as provided in this} \n\line 111.27 {\ul section, the money credited to each debt service reserve fund} \n\line 111.28 {\ul must be used only for the payment of the principal of bonds of} \n\line 111.29 {\ul the society as they mature, the purchase of the bonds, the} \n\line 111.30 {\ul payment of interest on them, or the payment of any premium} \n\line 111.31 {\ul required when the bonds are redeemed before maturity. Money in} \n\line 111.32 {\ul a debt service reserve fund must not be withdrawn at a time and} \n\line 111.33 {\ul in an amount that reduces the amount of the fund to less than} \n\line 111.34 {\ul the amount the society determines to be reasonably necessary for} \n\line 111.35 {\ul the purposes of the fund. However, money may be withdrawn to} \n\line 111.36 {\ul pay principal or interest due on bonds secured by the fund if} \n\line 112.1 {\ul other money of the society is not available.} \n\line 112.2 {\ul Subd. 3.} [INVESTMENT.] {\ul Money in a debt service reserve} \n\line 112.3 {\ul fund not required for immediate use may be invested in} \n\line 112.4 {\ul accordance with section 37.07.} \n\line 112.5 {\ul Subd. 4.} [MINIMUM AMOUNT OF RESERVE AT ISSUANCE.] {\ul If the} \n\line 112.6 {\ul society establishes a debt service reserve fund for the security} \n\line 112.7 {\ul of any series of bonds, it shall not issue additional bonds that} \n\line 112.8 {\ul are similarly secured if the amount of any of the debt service} \n\line 112.9 {\ul reserve funds at the time of issuance does not equal or exceed} \n\line 112.10 {\ul the minimum amount required by the resolution creating the fund,} \n\line 112.11 {\ul unless the society deposits in each fund at the time of} \n\line 112.12 {\ul issuance, from the proceeds of the bonds, or otherwise, an} \n\line 112.13 {\ul amount that when added together with the amount then in the fund} \n\line 112.14 {\ul will be at least the minimum amount required.} \n\line 112.15 {\ul Subd. 5.} [TRANSFER OF EXCESS.] {\ul To the extent consistent} \n\line 112.16 {\ul with the resolutions and indentures securing outstanding bonds,} \n\line 112.17 {\ul the society may at the close of a fiscal year transfer to any} \n\line 112.18 {\ul other fund or account from any debt service reserve fund any} \n\line 112.19 {\ul excess in that reserve fund over the amount determined by the} \n\line 112.20 {\ul society to be reasonably necessary for the purpose of the} \n\line 112.21 {\ul reserve fund.} \n\line 112.22 Sec. 4. [37.34] [MONEY OF THE SOCIETY.] \n\line 112.23 {\ul The society may contract with the holders of any of its} \n\line 112.24 {\ul bonds as to the custody, collection, securing, investment, and} \n\line 112.25 {\ul payment of money of the society or money held in trust or} \n\line 112.26 {\ul otherwise for the payment of bonds, and to carry out the} \n\line 112.27 {\ul contract. Money held in trust or otherwise for the payment of} \n\line 112.28 {\ul bonds or in any way to secure bonds and deposits of the money} \n\line 112.29 {\ul may be secured in the same manner as money of the society, and} \n\line 112.30 {\ul all banks and trust companies are authorized to give security} \n\line 112.31 {\ul for the deposits.} \n\line 112.32 Sec. 5. [37.35] [NONLIABILITY.] \n\line 112.33 {\ul Subdivision 1.} [NONLIABILITY OF INDIVIDUALS.] {\ul No member of} \n\line 112.34 {\ul the society or other person executing the bonds is liable} \n\line 112.35 {\ul personally on the bonds or is subject to any personal liability} \n\line 112.36 {\ul or accountability by reason of their issuance.} \n\line 113.1 {\ul Subd. 2.} [NONLIABILITY OF STATE.] {\ul The state is not liable} \n\line 113.2 {\ul on bonds of the society issued under section 37.31 and those} \n\line 113.3 {\ul bonds are not a debt of the state. The bonds must contain on} \n\line 113.4 {\ul their face a statement to that effect.} \n\line 113.5 Sec. 6. [37.36] [PURCHASE AND CANCELLATION BY SOCIETY.] \n\line 113.6 {\ul Subject to agreements with bondholders that may then exist,} \n\line 113.7 {\ul the society may purchase out of money available for the purpose,} \n\line 113.8 {\ul bonds of the society which shall then be canceled, at a price} \n\line 113.9 {\ul not exceeding the following amounts:} \n\line 113.10 {\ul (1) if the bonds are then redeemable, the redemption price} \n\line 113.11 {\ul then applicable plus accrued interest to the next interest} \n\line 113.12 {\ul payment date of the bonds; or} \n\line 113.13 {\ul (2) if the bonds are not redeemable, the redemption price} \n\line 113.14 {\ul applicable on the first date after the purchase upon which the} \n\line 113.15 {\ul bonds become subject to redemption plus accrued interest to that} \n\line 113.16 {\ul date.} \n\line 113.17 Sec. 7. [37.37] [STATE PLEDGE AGAINST IMPAIRMENT OF \n\line 113.18 CONTRACTS.] \n\line 113.19 {\ul The state pledges and agrees with the holders of bonds} \n\line 113.20 {\ul issued under section 37.31 that the state will not limit or} \n\line 113.21 {\ul alter the rights vested in the society to fulfill the terms of} \n\line 113.22 {\ul any agreements made with the bondholders or in any way impair} \n\line 113.23 {\ul the rights and remedies of the holders until the bonds, together} \n\line 113.24 {\ul with interest on them, with interest on any unpaid installments} \n\line 113.25 {\ul of interest, and all costs and expenses in connection with any} \n\line 113.26 {\ul action or proceeding by or on behalf of the bondholders, are} \n\line 113.27 {\ul fully met and discharged. The society may include this pledge} \n\line 113.28 {\ul and agreement of the state in any agreement with the holders of} \n\line 113.29 {\ul bonds issued under section 37.31.} \n\line 113.30 Sec. 8. Minnesota Statutes 2002, section 373.01, \n\line 113.31 subdivision 3, is amended to read: \n\line 113.32 Subd. 3. [CAPITAL NOTES.] A county board may, by \n\line 113.33 resolution and without referendum, issue capital notes subject \n\line 113.34 to the county debt limit to purchase capital equipment useful \n\line 113.35 for county purposes that has an expected useful life at least \n\line 113.36 equal to the term of the notes. The notes shall be payable in \n\line 114.1 not more than five years and shall be issued on terms and in a \n\line 114.2 manner the board determines. A tax levy shall be made for \n\line 114.3 payment of the principal and interest on the notes, in \n\line 114.4 accordance with section 475.61, as in the case of bonds. For \n\line 114.5 purposes of this subdivision, "capital equipment" means public \n\line 114.6 safety, ambulance, road construction or maintenance, {\ul and} medical \n\line 114.7 {\strike , and data processing} equipment{\ul , and computer hardware and} \n\line 114.8 {\ul original operating system software}. \n\line 114.9 Sec. 9. Minnesota Statutes 2002, section 373.45, \n\line 114.10 subdivision 1, is amended to read: \n\line 114.11 Subdivision 1. [DEFINITIONS.] (a) As used in this section, \n\line 114.12 the following terms have the meanings given. \n\line 114.13 (b) "Authority" means the Minnesota public facilities \n\line 114.14 authority. \n\line 114.15 (c) "Commissioner" means the commissioner of finance. \n\line 114.16 (d) "Debt obligation" means a general obligation bond \n\line 114.17 issued by a county{\ul , or a bond payable from a county lease} \n\line 114.18 {\ul obligation under section 641.24,} to provide funds for the \n\line 114.19 construction of: \n\line 114.20 (1) jails; \n\line 114.21 (2) correctional facilities; \n\line 114.22 (3) law enforcement facilities; \n\line 114.23 (4) social services and human services facilities; or \n\line 114.24 (5) solid waste facilities. \n\line 114.25 Sec. 10. Minnesota Statutes 2002, section 373.47, \n\line 114.26 subdivision 1, is amended to read: \n\line 114.27 Subdivision 1. [AUTHORITY TO INCUR DEBT.] {\strike (a)} Subject to \n\line 114.28 prior approval by the public safety radio system planning \n\line 114.29 committee under section 473.907, the governing body of a county \n\line 114.30 may finance the cost of designing, constructing, and acquiring \n\line 114.31 public safety communication system infrastructure and equipment \n\line 114.32 for use on the statewide, shared public safety radio system by \n\line 114.33 issuing: \n\line 114.34 (1) capital improvement bonds under section 373.40, as if \n\line 114.35 the infrastructure and equipment qualified as a "capital \n\line 114.36 improvement" within the meaning of section 373.40, subdivision \n\line 115.1 1, paragraph (b); and \n\line 115.2 (2) capital notes under the provisions of section 373.01, \n\line 115.3 subdivision 3, as if the equipment qualified as "capital \n\line 115.4 equipment" within the meaning of section 373.01, subdivision 3. \n\line 115.5 {\strike (b) For purposes of this section, "county" means the} \n\line 115.6 {\strike following counties: Anoka, Benton, Carver, Chisago, Dakota,} \n\line 115.7 {\strike Dodge, Fillmore, Freeborn, Goodhue, Hennepin, Houston, Isanti,} \n\line 115.8 {\strike Mower, Olmsted, Ramsey, Rice, Scott, Sherburne, Steele, Wabasha,} \n\line 115.9 {\strike Washington, Wright, and Winona.} \n\line 115.10 {\strike (c) The authority to incur debt under this section is not} \n\line 115.11 {\strike effective until July 1, 2003, for the following counties:} \n\line 115.12 {\strike Benton, Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower,} \n\line 115.13 {\strike Olmsted, Rice, Sherburne, Steele, Wabasha, Wright, and Winona.} \n\line 115.14 Sec. 11. Minnesota Statutes 2002, section 376.009, is \n\line 115.15 amended to read: \n\line 115.16 376.009 [COUNTY HOSPITAL DEFINED; MAY HAVE MANY BUILDINGS, \n\line 115.17 SITES.] \n\line 115.18 For the purposes of sections 376.01 to 376.06, "county \n\line 115.19 hospital" means any hospital owned or operated by a county which \n\line 115.20 may consist of any number of buildings at one location or any \n\line 115.21 number of buildings at different locations within the \n\line 115.22 county. {\ul The county board of any county that has not established} \n\line 115.23 {\ul a county hospital may by resolution authorize a statutory or} \n\line 115.24 {\ul home rule charter city in the county and its city council to} \n\line 115.25 {\ul exercise the powers of a county and the county board under} \n\line 115.26 {\ul sections 376.01 to 376.07, in which case references in sections} \n\line 115.27 {\ul 376.01 to 376.07 to "county" and "county board" refer to the} \n\line 115.28 {\ul city so designated and its governing body, respectively.} \n\line 115.29 Sec. 12. Minnesota Statutes 2002, section 376.55, \n\line 115.30 subdivision 3, is amended to read: \n\line 115.31 Subd. 3. [FINANCING.] The county board may transfer \n\line 115.32 surplus funds from any fund except the road and bridge, sinking \n\line 115.33 or drainage ditch funds for the purpose of \n\line 115.34 establishing, {\ul acquiring,} maintaining, enlarging, or adding to a \n\line 115.35 county nursing home. When surplus funds are not available for \n\line 115.36 transfer, a county board may issue bonds to pay the cost of \n\line 116.1 establishing, {\ul acquiring,} equipping, furnishing, enlarging, or \n\line 116.2 adding to a county nursing home, subject to section 376.56. \n\line 116.3 Sec. 13. Minnesota Statutes 2002, section 376.55, is \n\line 116.4 amended by adding a subdivision to read: \n\line 116.5 {\ul Subd. 7.} [CITY POWERS.] {\ul The county board of any county} \n\line 116.6 {\ul that has not established a nursing home may by resolution} \n\line 116.7 {\ul authorize a statutory or home rule charter city within the} \n\line 116.8 {\ul county to exercise the powers of a county under sections 376.55} \n\line 116.9 {\ul to 376.60. A city so designated may exercise within its} \n\line 116.10 {\ul boundaries all the powers of a county under sections 376.55 to} \n\line 116.11 {\ul 376.60.} \n\line 116.12 Sec. 14. Minnesota Statutes 2002, section 376.56, \n\line 116.13 subdivision 3, is amended to read: \n\line 116.14 Subd. 3. [CHAPTER 475 BONDS.] Bonds issued under section \n\line 116.15 376.55, subdivision 3, may be general obligations of the county \n\line 116.16 and may be issued and sold, and taxes levied for their payment \n\line 116.17 as provided under chapter 475. No election shall be required to \n\line 116.18 authorize the bond issue for {\ul acquiring,} improving, remodeling, \n\line 116.19 or replacing an existing nursing home without increasing the \n\line 116.20 {\ul total} number of accommodations for residents {\ul in all nursing} \n\line 116.21 {\ul homes in the county}. The revenues of the nursing home shall \n\line 116.22 also be pledged for the payment of the bonds and for any \n\line 116.23 interest and premium. Part of the proceeds may be deposited in \n\line 116.24 the debt service fund for the issue, to capitalize interest and \n\line 116.25 create a reserve to reduce or eliminate the tax otherwise \n\line 116.26 required by section 475.61 to be levied before issuing the \n\line 116.27 bonds. The remaining proceeds from the sale of the bonds and \n\line 116.28 any surplus funds transferred under section 376.55, subdivision \n\line 116.29 3 must be credited to and deposited in the county nursing home \n\line 116.30 building fund of the county in which the nursing home is located.\n\line 116.31 Sec. 15. Minnesota Statutes 2002, section 383B.77, \n\line 116.32 subdivision 1, is amended to read: \n\line 116.33 Subdivision 1. [CREATION.] The Hennepin county housing and \n\line 116.34 redevelopment authority is created in the county of Hennepin. \n\line 116.35 It shall have all of the powers and duties of a housing and \n\line 116.36 redevelopment authority under sections 469.001 to 469.047. For \n\line 117.1 the purposes of applying the municipal housing and redevelopment \n\line 117.2 act to Hennepin county, the county has all of the powers and \n\line 117.3 duties of a city, the county board has all the powers and duties \n\line 117.4 of a governing body, the chair of the county board has all of \n\line 117.5 the powers and duties of a mayor, and{\ul , notwithstanding section} \n\line 117.6 {\ul 469.008,} the area of operation includes the area within the \n\line 117.7 territorial boundaries of the county. \n\line 117.8 Sec. 16. Minnesota Statutes 2002, section 383B.77, \n\line 117.9 subdivision 2, is amended to read: \n\line 117.10 Subd. 2. [LIMITATION.] This section does not limit or \n\line 117.11 restrict any existing housing and redevelopment authority or \n\line 117.12 prevent a municipality from creating an authority. For purposes \n\line 117.13 of this subdivision, "housing and redevelopment authority" \n\line 117.14 includes any municipal department, agency, or authority of the \n\line 117.15 city of Minneapolis which exercises the powers of a housing and \n\line 117.16 redevelopment authority pursuant to section 469.003 or other \n\line 117.17 law. The county authority shall notify a municipal authority by \n\line 117.18 January 31 of each year as to the activities the county \n\line 117.19 authority plans to participate in within the municipality. The \n\line 117.20 municipal authority shall notify the county authority within 45 \n\line 117.21 days of the date of the notice from the county authority, if the \n\line 117.22 municipal authority does not consent to the activities of the \n\line 117.23 county authority. {\strike The county authority shall not exercise its} \n\line 117.24 {\strike powers in a municipality where a housing and redevelopment} \n\line 117.25 {\strike authority was created under Minnesota Statutes 1969, chapter} \n\line 117.26 {\strike 462, before June 8, 1971, except as provided in this} \n\line 117.27 {\strike subdivision.} If a city housing and redevelopment authority \n\line 117.28 requests the county housing and redevelopment authority to \n\line 117.29 exercise any power or perform any function of the municipal \n\line 117.30 authority, the county authority may do so. \n\line 117.31 Sec. 17. Minnesota Statutes 2002, section 410.32, is \n\line 117.32 amended to read: \n\line 117.33 410.32 [CITIES MAY ISSUE CAPITAL NOTES TO BUY CAPITAL \n\line 117.34 EQUIPMENT.] \n\line 117.35 Notwithstanding any contrary provision of other law or \n\line 117.36 charter, a home rule charter city may, by resolution and without \n\line 118.1 public referendum, issue capital notes subject to the city debt \n\line 118.2 limit to purchase public safety equipment, ambulance and other \n\line 118.3 medical equipment, road construction and maintenance equipment, \n\line 118.4 and other capital equipment {\strike having} {\ul and computer hardware and} \n\line 118.5 {\ul original operating system software, provided the equipment or} \n\line 118.6 {\ul software has} an expected useful life at least as long as the \n\line 118.7 term of the notes. The notes shall be payable in not more than \n\line 118.8 five years and be issued on terms and in the manner the city \n\line 118.9 determines. The total principal amount of the capital notes \n\line 118.10 issued in a fiscal year shall not exceed 0.03 percent of the \n\line 118.11 market value of taxable property in the city for that year. A \n\line 118.12 tax levy shall be made for the payment of the principal and \n\line 118.13 interest on the notes, in accordance with section 475.61, as in \n\line 118.14 the case of bonds. Notes issued under this section shall \n\line 118.15 require an affirmative vote of two-thirds of the governing body \n\line 118.16 of the city. Notwithstanding a contrary provision of other law \n\line 118.17 or charter, a home rule charter city may also issue capital \n\line 118.18 notes subject to its debt limit in the manner and subject to the \n\line 118.19 limitations applicable to statutory cities pursuant to section \n\line 118.20 412.301. \n\line 118.21 Sec. 18. [410.326] [CAPITAL IMPROVEMENT BONDS.] \n\line 118.22 {\ul Subdivision 1.} [DEFINITIONS.] {\ul For purposes of this} \n\line 118.23 {\ul section, the following terms have the meanings given.} \n\line 118.24 {\ul (a) "Bonds" mean an obligation defined under section 475.51.}\n\line 118.25 {\ul (b) "Capital improvement" means acquisition or betterment} \n\line 118.26 {\ul of public lands, development rights in the form of conservation} \n\line 118.27 {\ul easements under chapter 84C, buildings or other improvements for} \n\line 118.28 {\ul the purpose of a city hall, administrative building, public} \n\line 118.29 {\ul safety, public works facility, parks, library, and roads and} \n\line 118.30 {\ul bridges. An improvement must have an expected useful life of} \n\line 118.31 {\ul five years or more to qualify. Capital improvement does not} \n\line 118.32 {\ul include light rail transit or any activity related to it or to a} \n\line 118.33 {\ul recreational or sports facility building, including, but not} \n\line 118.34 {\ul limited to, a gymnasium, ice arena, racquet sports facility,} \n\line 118.35 {\ul swimming pool, exercise room, or health spa, unless the building} \n\line 118.36 {\ul is part of an outdoor park and is incidental to the primary} \n\line 119.1 {\ul purpose of outdoor recreation.} \n\line 119.2 {\ul (c) "City" means a home rule charter or statutory city.} \n\line 119.3 {\ul Subd. 2.} [ELECTION REQUIREMENT.] {\ul (a) Bonds issued by a} \n\line 119.4 {\ul city to finance capital improvements under an approved capital} \n\line 119.5 {\ul improvements plan are not subject to the election requirements} \n\line 119.6 {\ul of section 475.58. The bonds are subject to the net debt limits} \n\line 119.7 {\ul under section 475.53. The bonds must be approved by an} \n\line 119.8 {\ul affirmative vote of three-fifths of the members of a five-member} \n\line 119.9 {\ul city council. In the case of a city council having more than} \n\line 119.10 {\ul five members, the bonds must be approved by a vote of at least} \n\line 119.11 {\ul two-thirds of the city council.} \n\line 119.12 {\ul (b) Before the issuance of bonds qualifying under this} \n\line 119.13 {\ul section, the city must publish a notice of its intention to} \n\line 119.14 {\ul issue the bonds and the date and time of the hearing to obtain} \n\line 119.15 {\ul public comment on the matter. The notice must be published in} \n\line 119.16 {\ul the official newspaper of the city or in a newspaper of general} \n\line 119.17 {\ul circulation in the city. Additionally, the notice may be posted} \n\line 119.18 {\ul on the official Web site, if any, of the city. The notice must} \n\line 119.19 {\ul be published at least 14 but not more than 28 days before the} \n\line 119.20 {\ul date of the hearing.} \n\line 119.21 {\ul (c) A city may issue the bonds only after obtaining the} \n\line 119.22 {\ul approval of a majority of the voters voting on the question of} \n\line 119.23 {\ul issuing the obligations, if a petition requesting a vote on the} \n\line 119.24 {\ul issuance is signed by voters equal to five percent of the votes} \n\line 119.25 {\ul cast in the city in the last general election and is filed with} \n\line 119.26 {\ul the city clerk within 30 days after the public hearing. The} \n\line 119.27 {\ul commissioner of revenue shall prepare a suggested form of the} \n\line 119.28 {\ul question to be presented at the election.} \n\line 119.29 {\ul Subd. 3.} [CAPITAL IMPROVEMENT PLAN.] {\ul (a) A city may adopt} \n\line 119.30 {\ul a capital improvement plan. The plan must cover at least a} \n\line 119.31 {\ul five-year period beginning with the date of its adoption. The} \n\line 119.32 {\ul plan must set forth the estimated schedule, timing, and details} \n\line 119.33 {\ul of specific capital improvements by year, together with the} \n\line 119.34 {\ul estimated cost, the need for the improvement, and sources of} \n\line 119.35 {\ul revenue to pay for the improvement. In preparing the capital} \n\line 119.36 {\ul improvement plan, the city council must consider for each} \n\line 120.1 {\ul project and for the overall plan:} \n\line 120.2 {\ul (1) the condition of the city's existing infrastructure,} \n\line 120.3 {\ul including the projected need for repair or replacement;} \n\line 120.4 {\ul (2) the likely demand for the improvement;} \n\line 120.5 {\ul (3) the estimated cost of the improvement;} \n\line 120.6 {\ul (4) the available public resources;} \n\line 120.7 {\ul (5) the level of overlapping debt in the city;} \n\line 120.8 {\ul (6) the relative benefits and costs of alternative uses of} \n\line 120.9 {\ul the funds;} \n\line 120.10 {\ul (7) operating costs of the proposed improvements; and} \n\line 120.11 {\ul (8) alternatives for providing services most efficiently} \n\line 120.12 {\ul through shared facilities with other cities or local government} \n\line 120.13 {\ul units.} \n\line 120.14 {\ul (b) The capital improvement plan and annual amendments to} \n\line 120.15 {\ul it must be approved by the city council after public hearing.} \n\line 120.16 {\ul Subd. 4.} [LIMITATIONS ON AMOUNT.] {\ul A city may not issue} \n\line 120.17 {\ul bonds under this section if the maximum amount of principal and} \n\line 120.18 {\ul interest to become due in any year on all the outstanding bonds} \n\line 120.19 {\ul issued under this section, including the bonds to be issued,} \n\line 120.20 {\ul will equal or exceed 0.05367 percent of taxable market value of} \n\line 120.21 {\ul property in the county. Calculation of the limit must be made} \n\line 120.22 {\ul using the taxable market value for the taxes payable year in} \n\line 120.23 {\ul which the obligations are issued and sold. This section does} \n\line 120.24 {\ul not limit the authority to issue bonds under any other special} \n\line 120.25 {\ul or general law.} \n\line 120.26 {\ul Subd. 5.} [APPLICATION OF CHAPTER 475.] {\ul Bonds to finance} \n\line 120.27 {\ul capital improvements qualifying under this section must be} \n\line 120.28 {\ul issued under the issuance authority in chapter 475 and the} \n\line 120.29 {\ul provisions of chapter 475 apply, except as otherwise} \n\line 120.30 {\ul specifically provided in this section.} \n\line 120.31 Sec. 19. Minnesota Statutes 2002, section 412.301, is \n\line 120.32 amended to read: \n\line 120.33 412.301 [FINANCING PURCHASE OF CERTAIN EQUIPMENT.] \n\line 120.34 The council may issue certificates of indebtedness or \n\line 120.35 capital notes subject to the city debt limits to purchase public \n\line 120.36 safety equipment, ambulance equipment, road construction or \n\line 121.1 maintenance equipment, and other capital equipment {\strike having} {\ul and} \n\line 121.2 {\ul computer hardware and original operating system software,} \n\line 121.3 {\ul provided the equipment or software has} an expected useful life \n\line 121.4 at least as long as the terms of the certificates or notes. \n\line 121.5 Such certificates or notes shall be payable in not more than \n\line 121.6 five years {\strike and} {\ul except that certificates or notes issued after} \n\line 121.7 {\ul June 30, 2003, and before July 1, 2008, shall be payable in not} \n\line 121.8 {\ul more than ten years. The certificates or notes} shall be issued \n\line 121.9 on such terms and in such manner as the council may determine. \n\line 121.10 If the amount of the certificates or notes to be issued to \n\line 121.11 finance any such purchase exceeds 0.25 percent of the market \n\line 121.12 value of taxable property in the city, they shall not be issued \n\line 121.13 for at least ten days after publication in the official \n\line 121.14 newspaper of a council resolution determining to issue them; and \n\line 121.15 if before the end of that time, a petition asking for an \n\line 121.16 election on the proposition signed by voters equal to ten \n\line 121.17 percent of the number of voters at the last regular municipal \n\line 121.18 election is filed with the clerk, such certificates or notes \n\line 121.19 shall not be issued until the proposition of their issuance has \n\line 121.20 been approved by a majority of the votes cast on the question at \n\line 121.21 a regular or special election. A tax levy shall be made for the \n\line 121.22 payment of the principal and interest on such certificates or \n\line 121.23 notes, in accordance with section 475.61, as in the case of \n\line 121.24 bonds. \n\line 121.25 Sec. 20. Minnesota Statutes 2002, section 469.175, \n\line 121.26 subdivision 3, is amended to read: \n\line 121.27 Subd. 3. [MUNICIPALITY APPROVAL.] A county auditor shall \n\line 121.28 not certify the original net tax capacity of a tax increment \n\line 121.29 financing district until the tax increment financing plan \n\line 121.30 proposed for that district has been approved by the municipality \n\line 121.31 in which the district is located. If an authority that proposes \n\line 121.32 to establish a tax increment financing district and the \n\line 121.33 municipality are not the same, the authority shall apply to the \n\line 121.34 municipality in which the district is proposed to be located and \n\line 121.35 shall obtain the approval of its tax increment financing plan by \n\line 121.36 the municipality before the authority may use tax increment \n\line 122.1 financing. The municipality shall approve the tax increment \n\line 122.2 financing plan only after a public hearing thereon after \n\line 122.3 published notice in a newspaper of general circulation in the \n\line 122.4 municipality at least once not less than ten days nor more than \n\line 122.5 30 days prior to the date of the hearing. The published notice \n\line 122.6 must include a map of the area of the district from which \n\line 122.7 increments may be collected and, if the project area includes \n\line 122.8 additional area, a map of the project area in which the \n\line 122.9 increments may be expended. The hearing may be held before or \n\line 122.10 after the approval or creation of the project or it may be held \n\line 122.11 in conjunction with a hearing to approve the project. Before or \n\line 122.12 at the time of approval of the tax increment financing plan, the \n\line 122.13 municipality shall make the following findings, and shall set \n\line 122.14 forth in writing the reasons and supporting facts for each \n\line 122.15 determination: \n\line 122.16 (1) that the proposed tax increment financing district is a \n\line 122.17 redevelopment district, a renewal or renovation district, a \n\line 122.18 housing district, a soils condition district, or an economic \n\line 122.19 development district; if the proposed district is a \n\line 122.20 redevelopment district or a renewal or renovation district, the \n\line 122.21 reasons and supporting facts for the determination that the \n\line 122.22 district meets the criteria of section 469.174, subdivision 10, \n\line 122.23 paragraph (a), clauses (1) and (2), or subdivision 10a, must be \n\line 122.24 documented in writing and retained and made available to the \n\line 122.25 public by the authority until the district has been terminated; \n\line 122.26 (2) that the proposed development or redevelopment, in the \n\line 122.27 opinion of the municipality, would not reasonably be expected to \n\line 122.28 occur solely through private investment within the reasonably \n\line 122.29 foreseeable future and that the increased market value of the \n\line 122.30 site that could reasonably be expected to occur without the use \n\line 122.31 of tax increment financing would be less than the increase in \n\line 122.32 the market value estimated to result from the proposed \n\line 122.33 development after subtracting the present value of the projected \n\line 122.34 tax increments for the maximum duration of the district \n\line 122.35 permitted by the plan. The requirements of this clause do not \n\line 122.36 apply if the district is a qualified housing district, as \n\line 123.1 defined in section 273.1399, subdivision 1; \n\line 123.2 (3) that the tax increment financing plan conforms to the \n\line 123.3 general plan for the development or redevelopment of the \n\line 123.4 municipality as a whole; \n\line 123.5 (4) that the tax increment financing plan will afford \n\line 123.6 maximum opportunity, consistent with the sound needs of the \n\line 123.7 municipality as a whole, for the development or redevelopment of \n\line 123.8 the project by private enterprise; \n\line 123.9 (5) that the municipality elects the method of tax \n\line 123.10 increment computation set forth in section 469.177, subdivision \n\line 123.11 3, clause (b), if applicable. \n\line 123.12 When the municipality and the authority are not the same, \n\line 123.13 the municipality shall approve or disapprove the tax increment \n\line 123.14 financing plan within 60 days of submission by the authority. \n\line 123.15 When the municipality and the authority are not the same, the \n\line 123.16 municipality may not amend or modify a tax increment financing \n\line 123.17 plan except as proposed by the authority pursuant to subdivision \n\line 123.18 4. Once approved, the determination of the authority to \n\line 123.19 undertake the project through the use of tax increment financing \n\line 123.20 and the resolution of the governing body shall{\ul , except as} \n\line 123.21 {\ul provided in subdivision 9,} be conclusive of the findings therein \n\line 123.22 and of the public need for the financing. \n\line 123.23 Sec. 21. Minnesota Statutes 2002, section 469.175, is \n\line 123.24 amended by adding a subdivision to read: \n\line 123.25 {\ul Subd. 9.} [LIMITS ON ACTIONS.] {\ul (a) A taxpayer in the county} \n\line 123.26 {\ul where the district is located or another person in interest may} \n\line 123.27 {\ul contest an action as provided in this subdivision. The} \n\line 123.28 {\ul procedure set out in this subdivision is the exclusive means to} \n\line 123.29 {\ul contest:} \n\line 123.30 {\ul (1) the formation and approval or the legality of a} \n\line 123.31 {\ul district, or a tax financing plan or its modification;} \n\line 123.32 {\ul (2) the inclusion of a parcel in a district; or} \n\line 123.33 {\ul (3) the legality of the collection or retention of a tax} \n\line 123.34 {\ul increment from the district, or the legality of the bonds issued} \n\line 123.35 {\ul under a tax increment financing plan based on a defect in the} \n\line 123.36 {\ul formation of the district or the adoption or approval of the} \n\line 124.1 {\ul plan or its modification.} \n\line 124.2 {\ul This restriction applies to proceedings under section 469.1771.} \n\line 124.3 {\ul (b) The contestant must object in writing to the authority} \n\line 124.4 {\ul within 90 days after the adoption of a resolution approving a} \n\line 124.5 {\ul tax increment financing plan under subdivision 3 or modification} \n\line 124.6 {\ul of the plan under subdivision 4.} \n\line 124.7 {\ul (c) After the 90-day period has expired, no government unit} \n\line 124.8 {\ul or state agency may contest the matters described in paragraph} \n\line 124.9 {\ul (a).} \n\line 124.10 {\ul (d) The state auditor retains all rights and powers granted} \n\line 124.11 {\ul to the state auditor under section 469.1771, except to the} \n\line 124.12 {\ul extent otherwise provided in this subdivision.} \n\line 124.13 {\ul (e) If the state auditor files a notice of noncompliance} \n\line 124.14 {\ul with the county attorney regarding a matter limited by this} \n\line 124.15 {\ul subdivision, and the notice is filed after 30 days from the} \n\line 124.16 {\ul adoption of the approving resolution, then in any action begun} \n\line 124.17 {\ul later by the county attorney under section 469.1771, subdivision} \n\line 124.18 {\ul 1, paragraph (b), the remedy in district court is limited to the} \n\line 124.19 {\ul remedies that would apply under section 469.1771, subdivision} \n\line 124.20 {\ul 2b, paragraphs (c) and (d), for petitions filed by the attorney} \n\line 124.21 {\ul general in tax court under section 469.1771, subdivision 2b,} \n\line 124.22 {\ul paragraph (a).} \n\line 124.23 Sec. 22. Minnesota Statutes 2002, section 473.39, is \n\line 124.24 amended by adding a subdivision to read: \n\line 124.25 {\ul Subd. 1j.} [OBLIGATIONS.] {\ul After July 1, 2003, in addition} \n\line 124.26 {\ul to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, 1g, 1h, and} \n\line 124.27 {\ul 1i, the council may issue certificates of indebtedness, bonds,} \n\line 124.28 {\ul or other obligations under this section in an amount not} \n\line 124.29 {\ul exceeding $45,000,000 for capital expenditures as prescribed in} \n\line 124.30 {\ul the council's regional transit master plan and transit capital} \n\line 124.31 {\ul improvement program and for related costs, including the costs} \n\line 124.32 {\ul of issuance and sale of the obligations.} \n\line 124.33 [APPLICATION.] {\ul This section applies to the counties of} \n\line 124.34 {\ul Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.} \n\line 124.35 Sec. 23. Minnesota Statutes 2002, section 475.58, \n\line 124.36 subdivision 3b, is amended to read: \n\line 125.1 Subd. 3b. [STREET RECONSTRUCTION.] (a) A municipality may, \n\line 125.2 without regard to the election requirement under subdivision 1, \n\line 125.3 issue and sell obligations for street reconstruction, if the \n\line 125.4 following conditions are met: \n\line 125.5 (1) the streets are reconstructed under a street \n\line 125.6 reconstruction plan that describes the streets to be \n\line 125.7 reconstructed, the estimated costs, and any planned \n\line 125.8 reconstruction of other streets in the municipality over the \n\line 125.9 next five years, and the plan and issuance of the obligations \n\line 125.10 has been approved by a vote of all of the members of the \n\line 125.11 governing body following a public hearing for which notice has \n\line 125.12 been published in the official newspaper at least ten days but \n\line 125.13 not more than 28 days prior to the hearing; and \n\line 125.14 (2) if a petition requesting a vote on the issuance is \n\line 125.15 signed by voters equal to five percent of the votes cast in the \n\line 125.16 last municipal general election and is filed with the municipal \n\line 125.17 clerk within 30 days of the public hearing, the municipality may \n\line 125.18 issue the bonds only after obtaining the approval of a majority \n\line 125.19 of the voters voting on the question of the issuance of the \n\line 125.20 obligations. \n\line 125.21 (b) Obligations issued under this subdivision are subject \n\line 125.22 to the debt limit of the municipality and are not excluded from \n\line 125.23 net debt under section 475.51, subdivision 4. \n\line 125.24 {\ul For purposes of this subdivision, street reconstruction includes} \n\line 125.25 {\ul utility replacement and relocation and other activities} \n\line 125.26 {\ul incidental to the street reconstruction, but does not include} \n\line 125.27 {\ul the portion of project cost allocable to widening a street or} \n\line 125.28 {\ul adding curbs and gutters where none previously existed.} \n\line 125.29 Sec. 24. [BONDS ISSUANCE VALIDATED.] \n\line 125.30 {\ul The provisions of Minnesota Statutes, sections 373.47,} \n\line 125.31 {\ul subdivision 1, and 473.907, subdivision 3, requiring prior} \n\line 125.32 {\ul review and approval by the public radio safety committee do not} \n\line 125.33 {\ul apply to the general obligation bonds issued by Anoka county in} \n\line 125.34 {\ul a principal amount of $10,500,000 on November 20, 2002.} \n\line 125.35 [EFFECTIVE DATE.] {\ul This section is effective upon compliance} \n\line 125.36 {\ul by the governing body of Anoka county with the provisions of} \n\line 126.1 {\ul Minnesota Statutes, section 645.021.} \n\line 126.2 Sec. 25. [CORPORATE STATUS FOR CERTAIN FEDERAL TAX LAW.] \n\line 126.3 {\ul For purposes of section 1.103-1 of the federal income tax} \n\line 126.4 {\ul regulations, Lewis and Clark Rural Water System, Inc. is hereby} \n\line 126.5 {\ul recognized as a corporation authorized to act on behalf of its} \n\line 126.6 {\ul members, including its Minnesota member governmental units, to} \n\line 126.7 {\ul provide drinking water to their communities and to issue debt} \n\line 126.8 {\ul obligations in its own name on behalf of some or all of its} \n\line 126.9 {\ul members, provided that Minnesota member governmental units are} \n\line 126.10 {\ul not liable for the payment of principal of or interest on such} \n\line 126.11 {\ul obligations.} \n\line 126.12 Sec. 26. [EFFECTIVE DATES.] \n\line 126.13 {\ul This article is effective the day following final enactment.}\n\line 126.14 {\ul Sections 20 and 21 apply to all districts, regardless of when} \n\line 126.15 {\ul created, and are effective the day following final enactment and} \n\line 126.16 {\ul for all actions commenced after November 13, 2001.} \n\line 126.17 ARTICLE 6 \n\line 126.18 DEPARTMENT INCOME, CORPORATE FRANCHISE, AND \n\line 126.19 ESTATE TAX INITIATIVES \n\line 126.20 Section 1. Minnesota Statutes 2002, section 289A.10, \n\line 126.21 subdivision 1, is amended to read: \n\line 126.22 Subdivision 1. [RETURN REQUIRED.] In the case of a \n\line 126.23 decedent who has an interest in property with a situs in \n\line 126.24 Minnesota, the personal representative must submit a Minnesota \n\line 126.25 estate tax return to the commissioner, on a form prescribed by \n\line 126.26 the commissioner, if{\ul :} \n\line 126.27 {\ul (1) a federal estate tax return is required to be filed; or} \n\line 126.28 {\ul (2)} the federal gross estate exceeds $700,000 for estates \n\line 126.29 of decedents dying after December 31, 2001, and before January \n\line 126.30 1, 2004; $850,000 for estates of decedents dying after December \n\line 126.31 31, 2003, and before January 1, 2005; $950,000 for estates of \n\line 126.32 decedents dying after December 31, 2004, and before January 1, \n\line 126.33 2006; and $1,000,000 for estates of decedents dying after \n\line 126.34 December 31, 2005. \n\line 126.35 The return must contain a computation of the Minnesota \n\line 126.36 estate tax due. The return must be signed by the personal \n\line 127.1 representative. \n\line 127.2 [EFFECTIVE DATE.] {\ul This section is effective for estates of} \n\line 127.3 {\ul decedents dying after December 31, 2002.} \n\line 127.4 Sec. 2. Minnesota Statutes 2002, section 289A.19, \n\line 127.5 subdivision 4, is amended to read: \n\line 127.6 Subd. 4. [ESTATE TAX RETURNS.] {\ul When in the commissioner's} \n\line 127.7 {\ul judgment good cause exists, the commissioner may extend the time} \n\line 127.8 {\ul for filing an estate tax return for not more than six months.} \n\line 127.9 When an extension to file the federal estate tax return has been \n\line 127.10 granted under section 6081 of the Internal Revenue Code, the \n\line 127.11 time for filing the estate tax return is extended for that \n\line 127.12 period. \n\line 127.13 [EFFECTIVE DATE.] {\ul This section is effective for estates of} \n\line 127.14 {\ul decedents dying after December 31, 2001.} \n\line 127.15 Sec. 3. Minnesota Statutes 2002, section 289A.31, is \n\line 127.16 amended by adding a subdivision to read: \n\line 127.17 {\ul Subd. 8.} [LIABILITY OF VENDOR FOR REPAYMENT OF REFUND.] {\ul If} \n\line 127.18 {\ul an individual income tax refund resulting from claiming an} \n\line 127.19 {\ul education credit under section 290.0674 is paid by means of} \n\line 127.20 {\ul directly depositing the proceeds of the refund into a bank} \n\line 127.21 {\ul account controlled by the vendor of the product or service upon} \n\line 127.22 {\ul which the education credit is based, and the commissioner} \n\line 127.23 {\ul subsequently disallows the credit, the commissioner may seek} \n\line 127.24 {\ul repayment of the refund from the vendor. The amount of the} \n\line 127.25 {\ul repayment must be assessed and collected in the same time and} \n\line 127.26 {\ul manner as an erroneous refund under section 289A.37, subdivision} \n\line 127.27 {\ul 2.} \n\line 127.28 [EFFECTIVE DATE.] {\ul This section is effective for refunds} \n\line 127.29 {\ul paid to accounts controlled by a vendor on or after the day} \n\line 127.30 {\ul following final enactment.} \n\line 127.31 Sec. 4. Minnesota Statutes 2002, section 289A.56, \n\line 127.32 subdivision 3, is amended to read: \n\line 127.33 Subd. 3. [WITHHOLDING TAX, ENTERTAINER WITHHOLDING TAX, \n\line 127.34 WITHHOLDING FROM PAYMENTS TO OUT-OF-STATE CONTRACTORS, ESTATE \n\line 127.35 TAX, AND SALES TAX OVERPAYMENTS.] When a refund is due for \n\line 127.36 overpayments of withholding tax, entertainer withholding tax, {\ul or} \n\line 128.1 withholding from payments to out-of-state contractors, {\strike or estate} \n\line 128.2 {\strike tax,} interest is computed from the date of payment to the date \n\line 128.3 the refund is paid or credited. For purposes of this \n\line 128.4 subdivision, the date of payment is the later of the date the \n\line 128.5 tax was finally due or was paid. \n\line 128.6 {\ul For the purposes of computing interest on estate tax} \n\line 128.7 {\ul refunds, interest is paid from the later of the date of} \n\line 128.8 {\ul overpayment, the date the estate tax return is due, or the date} \n\line 128.9 {\ul the original estate tax return is filed to the date the refund} \n\line 128.10 {\ul is paid.} \n\line 128.11 For purposes of computing interest on sales and use tax \n\line 128.12 refunds, interest is paid from the date of payment to the date \n\line 128.13 the refund is paid or credited, if the refund claim includes a \n\line 128.14 detailed schedule reflecting the tax periods covered in the \n\line 128.15 claim. If the refund claim submitted does not include a \n\line 128.16 detailed schedule reflecting the tax periods covered in the \n\line 128.17 claim, interest is computed from the date the claim was filed. \n\line 128.18 [EFFECTIVE DATE.] {\ul This section is effective for estates of} \n\line 128.19 {\ul decedents dying after December 31, 2003.} \n\line 128.20 Sec. 5. Minnesota Statutes 2002, section 289A.60, \n\line 128.21 subdivision 7, is amended to read: \n\line 128.22 Subd. 7. [PENALTY FOR FRIVOLOUS RETURN.] If a taxpayer \n\line 128.23 files what purports to be a tax return or a claim for refund but \n\line 128.24 which does not contain information on which the substantial \n\line 128.25 correctness of the purported return or claim for refund may be \n\line 128.26 judged or contains information that on its face shows that the \n\line 128.27 purported return or claim for refund is substantially incorrect \n\line 128.28 and the conduct is due to a position that is frivolous or a \n\line 128.29 desire that appears on the purported return or claim for refund \n\line 128.30 to delay or impede the administration of Minnesota tax laws, \n\line 128.31 then the individual shall pay a penalty of {\strike $500} {\ul the greater of} \n\line 128.32 {\ul $1,000 or 25 percent of the amount of tax required to be shown} \n\line 128.33 {\ul on the return}. In a proceeding involving the issue of whether \n\line 128.34 or not a person is liable for this penalty, the burden of proof \n\line 128.35 is on the commissioner. \n\line 128.36 [EFFECTIVE DATE.] {\ul This section is effective for returns} \n\line 129.1 {\ul filed after December 31, 2003.} \n\line 129.2 Sec. 6. Minnesota Statutes 2002, section 290.01, \n\line 129.3 subdivision 19b, is amended to read: \n\line 129.4 Subd. 19b. [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For \n\line 129.5 individuals, estates, and trusts, there shall be subtracted from \n\line 129.6 federal taxable income: \n\line 129.7 (1) interest income on obligations of any authority, \n\line 129.8 commission, or instrumentality of the United States to the \n\line 129.9 extent includable in taxable income for federal income tax \n\line 129.10 purposes but exempt from state income tax under the laws of the \n\line 129.11 United States; \n\line 129.12 (2) if included in federal taxable income, the amount of \n\line 129.13 any overpayment of income tax to Minnesota or to any other \n\line 129.14 state, for any previous taxable year, whether the amount is \n\line 129.15 received as a refund or as a credit to another taxable year's \n\line 129.16 income tax liability; \n\line 129.17 (3) the amount paid to others, less the amount used to \n\line 129.18 claim the credit allowed under section 290.0674, not to exceed \n\line 129.19 $1,625 for each qualifying child in grades kindergarten to 6 and \n\line 129.20 $2,500 for each qualifying child in grades 7 to 12, for tuition, \n\line 129.21 textbooks, and transportation of each qualifying child in \n\line 129.22 attending an elementary or secondary school situated in \n\line 129.23 Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, \n\line 129.24 wherein a resident of this state may legally fulfill the state's \n\line 129.25 compulsory attendance laws, which is not operated for profit, \n\line 129.26 and which adheres to the provisions of the Civil Rights Act of \n\line 129.27 1964 and chapter 363. For the purposes of this clause, \n\line 129.28 "tuition" includes fees or tuition as defined in section \n\line 129.29 290.0674, subdivision 1, clause (1). As used in this clause, \n\line 129.30 "textbooks" includes books and other instructional materials and \n\line 129.31 equipment purchased or leased for use in elementary and \n\line 129.32 secondary schools in teaching only those subjects legally and \n\line 129.33 commonly taught in public elementary and secondary schools in \n\line 129.34 this state. Equipment expenses qualifying for deduction \n\line 129.35 includes expenses as defined and limited in section 290.0674, \n\line 129.36 subdivision 1, clause (3). "Textbooks" does not include \n\line 130.1 instructional books and materials used in the teaching of \n\line 130.2 religious tenets, doctrines, or worship, the purpose of which is \n\line 130.3 to instill such tenets, doctrines, or worship, nor does it \n\line 130.4 include books or materials for, or transportation to, \n\line 130.5 extracurricular activities including sporting events, musical or \n\line 130.6 dramatic events, speech activities, driver's education, or \n\line 130.7 similar programs. For purposes of the subtraction provided by \n\line 130.8 this clause, "qualifying child" has the meaning given in section \n\line 130.9 32(c)(3) of the Internal Revenue Code; \n\line 130.10 (4) income as provided under section 290.0802; \n\line 130.11 (5) to the extent included in federal adjusted gross \n\line 130.12 income, income realized on disposition of property exempt from \n\line 130.13 tax under section 290.491; \n\line 130.14 (6) {\strike to the extent not deducted in determining federal} \n\line 130.15 {\strike taxable income or used to claim the long-term care insurance} \n\line 130.16 {\strike credit under section 290.0672, the amount paid for health} \n\line 130.17 {\strike insurance of self-employed individuals as determined under} \n\line 130.18 {\strike section 162(l) of the Internal Revenue Code, except that the} \n\line 130.19 {\strike percent limit does not apply. If the individual deducted} \n\line 130.20 {\strike insurance payments under section 213 of the Internal Revenue} \n\line 130.21 {\strike Code of 1986, the subtraction under this clause must be reduced} \n\line 130.22 {\strike by the lesser of:} \n\line 130.23 {\strike (i) the total itemized deductions allowed under section} \n\line 130.24 {\strike 63(d) of the Internal Revenue Code, less state, local, and} \n\line 130.25 {\strike foreign income taxes deductible under section 164 of the} \n\line 130.26 {\strike Internal Revenue Code and the standard deduction under section} \n\line 130.27 {\strike 63(c) of the Internal Revenue Code; or} \n\line 130.28 {\strike (ii) the lesser of (A) the amount of insurance qualifying} \n\line 130.29 {\strike as "medical care" under section 213(d) of the Internal Revenue} \n\line 130.30 {\strike Code to the extent not deducted under section 162(1) of the} \n\line 130.31 {\strike Internal Revenue Code or excluded from income or (B) the total} \n\line 130.32 {\strike amount deductible for medical care under section 213(a);} \n\line 130.33 {\strike (7) the exemption amount allowed under Laws 1995, chapter} \n\line 130.34 {\strike 255, article 3, section 2, subdivision 3;} \n\line 130.35 {\strike (8)} to the extent included in federal taxable income, \n\line 130.36 postservice benefits for youth community service under section \n\line 131.1 124D.42 for volunteer service under United States Code, title \n\line 131.2 42, sections 12601 to 12604; \n\line 131.3 {\strike (9)} {\ul (7)} to the extent not deducted in determining federal \n\line 131.4 taxable income by an individual who does not itemize deductions \n\line 131.5 for federal income tax purposes for the taxable year, an amount \n\line 131.6 equal to 50 percent of the excess of charitable contributions \n\line 131.7 allowable as a deduction for the taxable year under section \n\line 131.8 170(a) of the Internal Revenue Code over $500; \n\line 131.9 {\strike (10)} {\ul (8)} for taxable years beginning before January 1, \n\line 131.10 2008, the amount of the federal small ethanol producer credit \n\line 131.11 allowed under section 40(a)(3) of the Internal Revenue Code \n\line 131.12 which is included in gross income under section 87 of the \n\line 131.13 Internal Revenue Code; \n\line 131.14 {\strike (11)} {\ul (9)} for individuals who are allowed a federal foreign \n\line 131.15 tax credit for taxes that do not qualify for a credit under \n\line 131.16 section 290.06, subdivision 22, an amount equal to the carryover \n\line 131.17 of subnational foreign taxes for the taxable year, but not to \n\line 131.18 exceed the total subnational foreign taxes reported in claiming \n\line 131.19 the foreign tax credit. For purposes of this clause, "federal \n\line 131.20 foreign tax credit" means the credit allowed under section 27 of \n\line 131.21 the Internal Revenue Code, and "carryover of subnational foreign \n\line 131.22 taxes" equals the carryover allowed under section 904(c) of the \n\line 131.23 Internal Revenue Code minus national level foreign taxes to the \n\line 131.24 extent they exceed the federal foreign tax credit; and \n\line 131.25 {\strike (12)} {\ul (10)} in each of the five tax years immediately \n\line 131.26 following the tax year in which an addition is required under \n\line 131.27 subdivision 19a, clause (7), an amount equal to one-fifth of the \n\line 131.28 delayed depreciation. For purposes of this clause, "delayed \n\line 131.29 depreciation" means the amount of the addition made by the \n\line 131.30 taxpayer under subdivision 19a, clause (7), minus the positive \n\line 131.31 value of any net operating loss under section 172 of the \n\line 131.32 Internal Revenue Code generated for the tax year of the \n\line 131.33 addition. The resulting delayed depreciation cannot be less \n\line 131.34 than zero. \n\line 131.35 [EFFECTIVE DATE.] {\ul This section is effective for tax years} \n\line 131.36 {\ul beginning after December 31, 2003.} \n\line 132.1 Sec. 7. Minnesota Statutes 2002, section 290.01, \n\line 132.2 subdivision 19d, is amended to read: \n\line 132.3 Subd. 19d. [CORPORATIONS; MODIFICATIONS DECREASING FEDERAL \n\line 132.4 TAXABLE INCOME.] For corporations, there shall be subtracted \n\line 132.5 from federal taxable income after the increases provided in \n\line 132.6 subdivision 19c: \n\line 132.7 (1) the amount of foreign dividend gross-up added to gross \n\line 132.8 income for federal income tax purposes under section 78 of the \n\line 132.9 Internal Revenue Code; \n\line 132.10 (2) the amount of salary expense not allowed for federal \n\line 132.11 income tax purposes due to claiming the federal jobs credit \n\line 132.12 under section 51 of the Internal Revenue Code; \n\line 132.13 (3) any dividend (not including any distribution in \n\line 132.14 liquidation) paid within the taxable year by a national or state \n\line 132.15 bank to the United States, or to any instrumentality of the \n\line 132.16 United States exempt from federal income taxes, on the preferred \n\line 132.17 stock of the bank owned by the United States or the \n\line 132.18 instrumentality; \n\line 132.19 (4) amounts disallowed for intangible drilling costs due to \n\line 132.20 differences between this chapter and the Internal Revenue Code \n\line 132.21 in taxable years beginning before January 1, 1987, as follows: \n\line 132.22 (i) to the extent the disallowed costs are represented by \n\line 132.23 physical property, an amount equal to the allowance for \n\line 132.24 depreciation under Minnesota Statutes 1986, section 290.09, \n\line 132.25 subdivision 7, subject to the modifications contained in \n\line 132.26 subdivision 19e; and \n\line 132.27 (ii) to the extent the disallowed costs are not represented\n\line 132.28 by physical property, an amount equal to the allowance for cost \n\line 132.29 depletion under Minnesota Statutes 1986, section 290.09, \n\line 132.30 subdivision 8; \n\line 132.31 (5) the deduction for capital losses pursuant to sections \n\line 132.32 1211 and 1212 of the Internal Revenue Code, except that: \n\line 132.33 (i) for capital losses incurred in taxable years beginning \n\line 132.34 after December 31, 1986, capital loss carrybacks shall not be \n\line 132.35 allowed; \n\line 132.36 (ii) for capital losses incurred in taxable years beginning \n\line 133.1 after December 31, 1986, a capital loss carryover to each of the \n\line 133.2 15 taxable years succeeding the loss year shall be allowed; \n\line 133.3 (iii) for capital losses incurred in taxable years \n\line 133.4 beginning before January 1, 1987, a capital loss carryback to \n\line 133.5 each of the three taxable years preceding the loss year, subject \n\line 133.6 to the provisions of Minnesota Statutes 1986, section 290.16, \n\line 133.7 shall be allowed; and \n\line 133.8 (iv) for capital losses incurred in taxable years beginning \n\line 133.9 before January 1, 1987, a capital loss carryover to each of the \n\line 133.10 five taxable years succeeding the loss year to the extent such \n\line 133.11 loss was not used in a prior taxable year and subject to the \n\line 133.12 provisions of Minnesota Statutes 1986, section 290.16, shall be \n\line 133.13 allowed; \n\line 133.14 (6) an amount for interest and expenses relating to income \n\line 133.15 not taxable for federal income tax purposes, if (i) the income \n\line 133.16 is taxable under this chapter and (ii) the interest and expenses \n\line 133.17 were disallowed as deductions under the provisions of section \n\line 133.18 171(a)(2), 265 or 291 of the Internal Revenue Code in computing \n\line 133.19 federal taxable income; \n\line 133.20 (7) in the case of mines, oil and gas wells, other natural \n\line 133.21 deposits, and timber for which percentage depletion was \n\line 133.22 disallowed pursuant to subdivision 19c, clause (11), a \n\line 133.23 reasonable allowance for depletion based on actual cost. In the \n\line 133.24 case of leases the deduction must be apportioned between the \n\line 133.25 lessor and lessee in accordance with rules prescribed by the \n\line 133.26 commissioner. In the case of property held in trust, the \n\line 133.27 allowable deduction must be apportioned between the income \n\line 133.28 beneficiaries and the trustee in accordance with the pertinent \n\line 133.29 provisions of the trust, or if there is no provision in the \n\line 133.30 instrument, on the basis of the trust's income allocable to \n\line 133.31 each; \n\line 133.32 (8) for certified pollution control facilities placed in \n\line 133.33 service in a taxable year beginning before December 31, 1986, \n\line 133.34 and for which amortization deductions were elected under section \n\line 133.35 169 of the Internal Revenue Code of 1954, as amended through \n\line 133.36 December 31, 1985, an amount equal to the allowance for \n\line 134.1 depreciation under Minnesota Statutes 1986, section 290.09, \n\line 134.2 subdivision 7; \n\line 134.3 (9) amounts included in federal taxable income that are due \n\line 134.4 to refunds of income, excise, or franchise taxes based on net \n\line 134.5 income or related minimum taxes paid by the corporation to \n\line 134.6 Minnesota, another state, a political subdivision of another \n\line 134.7 state, the District of Columbia, or a foreign country or \n\line 134.8 possession of the United States to the extent that the taxes \n\line 134.9 were added to federal taxable income under section 290.01, \n\line 134.10 subdivision 19c, clause (1), in a prior taxable year; \n\line 134.11 (10) 80 percent of royalties, fees, or other like income \n\line 134.12 accrued or received from a foreign operating corporation or a \n\line 134.13 foreign corporation which is part of the same unitary business \n\line 134.14 as the receiving corporation; \n\line 134.15 (11) income or gains from the business of mining as defined \n\line 134.16 in section 290.05, subdivision 1, clause (a), that are not \n\line 134.17 subject to Minnesota franchise tax; \n\line 134.18 (12) the amount of handicap access expenditures in the \n\line 134.19 taxable year which are not allowed to be deducted or capitalized \n\line 134.20 under section 44(d)(7) of the Internal Revenue Code; \n\line 134.21 (13) the amount of qualified research expenses not allowed \n\line 134.22 for federal income tax purposes under section 280C(c) of the \n\line 134.23 Internal Revenue Code, but only to the extent that the amount \n\line 134.24 exceeds the amount of the credit allowed under section 290.068; \n\line 134.25 (14) the amount of salary expenses not allowed for federal \n\line 134.26 income tax purposes due to claiming the Indian employment credit \n\line 134.27 under section 45A(a) of the Internal Revenue Code; \n\line 134.28 (15) the amount of any refund of environmental taxes paid \n\line 134.29 under section 59A of the Internal Revenue Code; \n\line 134.30 (16) for taxable years beginning before January 1, 2008, \n\line 134.31 the amount of the federal small ethanol producer credit allowed \n\line 134.32 under section 40(a)(3) of the Internal Revenue Code which is \n\line 134.33 included in gross income under section 87 of the Internal \n\line 134.34 Revenue Code; \n\line 134.35 (17) for a corporation whose foreign sales corporation, as \n\line 134.36 defined in section 922 of the Internal Revenue Code, constituted \n\line 135.1 a foreign operating corporation during any taxable year ending \n\line 135.2 before January 1, 1995, and a return was filed by August 15, \n\line 135.3 1996, claiming the deduction under {\strike this} {\ul section 290.21,} \n\line 135.4 subdivision {\ul 4,} for income received from the foreign operating \n\line 135.5 corporation, an amount equal to 1.23 multiplied by the amount of \n\line 135.6 income excluded under section 114 of the Internal Revenue Code, \n\line 135.7 provided the income is not income of a foreign operating \n\line 135.8 company; \n\line 135.9 (18) any decrease in subpart F income, as defined in \n\line 135.10 section 952(a) of the Internal Revenue Code, for the taxable \n\line 135.11 year when subpart F income is calculated without regard to the \n\line 135.12 provisions of section 614 of Public Law Number 107-147; and \n\line 135.13 (19) in each of the five tax years immediately following \n\line 135.14 the tax year in which an addition is required under subdivision \n\line 135.15 19c, clause (16), an amount equal to one-fifth of the delayed \n\line 135.16 depreciation. For purposes of this clause, "delayed \n\line 135.17 depreciation" means the amount of the addition made by the \n\line 135.18 taxpayer under subdivision 19c, clause (16). The resulting \n\line 135.19 delayed depreciation cannot be less than zero. \n\line 135.20 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 135.21 {\ul following final enactment.} \n\line 135.22 Sec. 8. Minnesota Statutes 2002, section 290.06, \n\line 135.23 subdivision 2c, is amended to read: \n\line 135.24 Subd. 2c. [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES, \n\line 135.25 AND TRUSTS.] (a) The income taxes imposed by this chapter upon \n\line 135.26 married individuals filing joint returns and surviving spouses \n\line 135.27 as defined in section 2(a) of the Internal Revenue Code must be \n\line 135.28 computed by applying to their taxable net income the following \n\line 135.29 schedule of rates: \n\line 135.30 (1) On the first $25,680, 5.35 percent; \n\line 135.31 (2) On all over $25,680, but not over $102,030, 7.05 \n\line 135.32 percent; \n\line 135.33 (3) On all over $102,030, 7.85 percent. \n\line 135.34 Married individuals filing separate returns, estates, and \n\line 135.35 trusts must compute their income tax by applying the above rates \n\line 135.36 to their taxable income, except that the income brackets will be \n\line 136.1 one-half of the above amounts. \n\line 136.2 (b) The income taxes imposed by this chapter upon unmarried \n\line 136.3 individuals must be computed by applying to taxable net income \n\line 136.4 the following schedule of rates: \n\line 136.5 (1) On the first $17,570, 5.35 percent; \n\line 136.6 (2) On all over $17,570, but not over $57,710, 7.05 \n\line 136.7 percent; \n\line 136.8 (3) On all over $57,710, 7.85 percent. \n\line 136.9 (c) The income taxes imposed by this chapter upon unmarried \n\line 136.10 individuals qualifying as a head of household as defined in \n\line 136.11 section 2(b) of the Internal Revenue Code must be computed by \n\line 136.12 applying to taxable net income the following schedule of rates: \n\line 136.13 (1) On the first $21,630, 5.35 percent; \n\line 136.14 (2) On all over $21,630, but not over $86,910, 7.05 \n\line 136.15 percent; \n\line 136.16 (3) On all over $86,910, 7.85 percent. \n\line 136.17 (d) In lieu of a tax computed according to the rates set \n\line 136.18 forth in this subdivision, the tax of any individual taxpayer \n\line 136.19 whose taxable net income for the taxable year is less than an \n\line 136.20 amount determined by the commissioner must be computed in \n\line 136.21 accordance with tables prepared and issued by the commissioner \n\line 136.22 of revenue based on income brackets of not more than $100. The \n\line 136.23 amount of tax for each bracket shall be computed at the rates \n\line 136.24 set forth in this subdivision, provided that the commissioner \n\line 136.25 may disregard a fractional part of a dollar unless it amounts to \n\line 136.26 50 cents or more, in which case it may be increased to $1. \n\line 136.27 (e) An individual who is not a Minnesota resident for the \n\line 136.28 entire year must compute the individual's Minnesota income tax \n\line 136.29 as provided in this subdivision. After the application of the \n\line 136.30 nonrefundable credits provided in this chapter, the tax \n\line 136.31 liability must then be multiplied by a fraction in which: \n\line 136.32 (1) the numerator is the individual's Minnesota source \n\line 136.33 federal adjusted gross income as defined in section 62 of the \n\line 136.34 Internal Revenue Code and increased by the additions required \n\line 136.35 under section 290.01, subdivision 19a, clauses (1){\ul , (5),} and \n\line 136.36 (6), and reduced by the Minnesota assignable portion of the \n\line 137.1 subtraction for United States government interest under section \n\line 137.2 290.01, subdivision 19b, clause (1), after applying the \n\line 137.3 allocation and assignability provisions of section 290.081, \n\line 137.4 clause (a), or 290.17; and \n\line 137.5 (2) the denominator is the individual's federal adjusted \n\line 137.6 gross income as defined in section 62 of the Internal Revenue \n\line 137.7 Code of 1986, increased by the amounts specified in section \n\line 137.8 290.01, subdivision 19a, clauses (1){\ul , (5),} and (6), and reduced \n\line 137.9 by the amounts specified in section 290.01, subdivision 19b, \n\line 137.10 clause (1). \n\line 137.11 [EFFECTIVE DATE.] {\ul This section is effective for tax years} \n\line 137.12 {\ul beginning after December 31, 2002.} \n\line 137.13 Sec. 9. Minnesota Statutes 2002, section 290.0671, \n\line 137.14 subdivision 1, is amended to read: \n\line 137.15 Subdivision 1. [CREDIT ALLOWED.] (a) An individual is \n\line 137.16 allowed a credit against the tax imposed by this chapter equal \n\line 137.17 to a percentage of earned income. To receive a credit, a \n\line 137.18 taxpayer must be eligible for a credit under section 32 of the \n\line 137.19 Internal Revenue Code. \n\line 137.20 (b) For individuals with no qualifying children, the credit \n\line 137.21 equals 1.9125 percent of the first $4,620 of earned income. The \n\line 137.22 credit is reduced by 1.9125 percent of earned income or modified \n\line 137.23 adjusted gross income, whichever is greater, in excess of \n\line 137.24 $5,770, but in no case is the credit less than zero. \n\line 137.25 (c) For individuals with one qualifying child, the credit \n\line 137.26 equals 8.5 percent of the first $6,920 of earned income and 8.5 \n\line 137.27 percent of earned income over $12,080 but less than $13,450. \n\line 137.28 The credit is reduced by 5.73 percent of earned income or \n\line 137.29 modified adjusted gross income, whichever is greater, in excess \n\line 137.30 of $15,080, but in no case is the credit less than zero. \n\line 137.31 (d) For individuals with two or more qualifying children, \n\line 137.32 the credit equals ten percent of the first $9,720 of earned \n\line 137.33 income and 20 percent of earned income over $14,860 but less \n\line 137.34 than $16,800. The credit is reduced by 10.3 percent of earned \n\line 137.35 income or modified adjusted gross income, whichever is greater, \n\line 137.36 in excess of $17,890, but in no case is the credit less than \n\line 138.1 zero. \n\line 138.2 (e) For a nonresident or part-year resident, the credit \n\line 138.3 must be allocated based on the percentage calculated under \n\line 138.4 section 290.06, subdivision 2c, paragraph (e). \n\line 138.5 (f) For a person who was a resident for the entire tax year \n\line 138.6 and has earned income not subject to tax under this chapter, the \n\line 138.7 credit must be allocated based on the ratio of federal adjusted \n\line 138.8 gross income reduced by the earned income not subject to tax \n\line 138.9 under this chapter over federal adjusted gross income. \n\line 138.10 (g) For tax years beginning after December 31, 2001, and \n\line 138.11 before December 31, 2004, the $5,770 in paragraph (b) {\strike is} \n\line 138.12 {\strike increased to $6,770}, the $15,080 in paragraph (c) {\strike is increased} \n\line 138.13 {\strike to $16,080}, and the $17,890 in paragraph (d) {\strike is increased to} \n\line 138.14 {\strike $18,890}{\ul , after being adjusted for inflation under subdivision 7,} \n\line 138.15 {\ul are each increased by $1,000} for married taxpayers filing joint \n\line 138.16 returns. \n\line 138.17 (h) For tax years beginning after December 31, 2004, and \n\line 138.18 before December 31, 2007, the $5,770 in paragraph (b) {\strike is} \n\line 138.19 {\strike increased to $7,770}, the $15,080 in paragraph (c) {\strike is increased} \n\line 138.20 {\strike to $17,080}, and the $17,890 in paragraph (d) {\strike is increased to} \n\line 138.21 {\strike $19,890}{\ul , after being adjusted for inflation under subdivision 7,} \n\line 138.22 {\ul are each increased by $2,000} for married taxpayers filing joint \n\line 138.23 returns. \n\line 138.24 (i) For tax years beginning after December 31, 2007, and \n\line 138.25 before December 31, 2010, the $5,770 in paragraph (b) {\strike is} \n\line 138.26 {\strike increased to $8,770}, the $15,080 in paragraph (c) {\strike is increased} \n\line 138.27 {\strike to $18,080}{\ul ,} and the $17,890 in paragraph (d) {\strike is increased to} \n\line 138.28 {\strike $20,890}{\ul , after being adjusted for inflation under subdivision 7,} \n\line 138.29 {\ul are each increased by $3,000} for married taxpayers filing joint \n\line 138.30 returns. {\ul For tax years beginning after December 31, 2008, the} \n\line 138.31 {\ul $3,000 is adjusted annually for inflation under subdivision 7.} \n\line 138.32 (j) The commissioner shall construct tables showing the \n\line 138.33 amount of the credit at various income levels and make them \n\line 138.34 available to taxpayers. The tables shall follow the schedule \n\line 138.35 contained in this subdivision, except that the commissioner may \n\line 138.36 graduate the transition between income brackets. \n\line 139.1 [EFFECTIVE DATE.] {\ul This section is effective for tax years} \n\line 139.2 {\ul beginning after December 31, 2002.} \n\line 139.3 Sec. 10. Minnesota Statutes 2002, section 290.0675, \n\line 139.4 subdivision 2, is amended to read: \n\line 139.5 Subd. 2. [CREDIT ALLOWED.] A married couple filing a joint \n\line 139.6 return is allowed a credit against the tax imposed under section \n\line 139.7 290.06. \n\line 139.8 {\strike The minimum taxable income for the married couple to be} \n\line 139.9 {\strike eligible for the credit is $25,680, and the minimum earned} \n\line 139.10 {\strike income in order for the couple to be eligible for the credit is} \n\line 139.11 {\strike $14,250 for each spouse.} \n\line 139.12 [EFFECTIVE DATE.] {\ul This section is effective for tax years} \n\line 139.13 {\ul beginning after December 31, 2002.} \n\line 139.14 Sec. 11. Minnesota Statutes 2002, section 290.0675, \n\line 139.15 subdivision 3, is amended to read: \n\line 139.16 Subd. 3. [CREDIT AMOUNT.] The credit amount is the \n\line 139.17 difference between the tax on the couple's joint Minnesota \n\line 139.18 taxable income under the rates {\ul and income levels} in section \n\line 139.19 290.06, subdivision 2c, paragraph (a), {\ul as adjusted for the} \n\line 139.20 {\ul taxable year by section 290.06, subdivision 2d,} and the sum of \n\line 139.21 the tax under the rates {\ul and income levels} of section 290.06, \n\line 139.22 subdivision 2c, paragraph (b), {\ul as adjusted for the taxable year} \n\line 139.23 {\ul by section 290.06, subdivision 2d,} on the earned income of the \n\line 139.24 lesser-earning spouse, and the tax under the rates {\ul and income} \n\line 139.25 {\ul levels} of section 290.06, subdivision 2c, paragraph (b), {\ul as} \n\line 139.26 {\ul adjusted for the taxable year by section 290.06, subdivision 2d,} \n\line 139.27 on the couple's joint Minnesota taxable income, minus the earned \n\line 139.28 income of the lesser-earning spouse. \n\line 139.29 The commissioner of revenue shall prepare and make \n\line 139.30 available to taxpayers a comprehensive table showing the credit \n\line 139.31 under this section at brackets of earnings of the lesser-earning \n\line 139.32 spouse and joint taxable income. The brackets of earnings shall \n\line 139.33 not be more than $2,000. \n\line 139.34 [EFFECTIVE DATE.] {\ul This section is effective for tax years} \n\line 139.35 {\ul beginning after December 31, 2002.} \n\line 139.36 Sec. 12. Minnesota Statutes 2002, section 290.0679, \n\line 140.1 subdivision 2, is amended to read: \n\line 140.2 Subd. 2. [CONDITIONS FOR ASSIGNMENT.] A qualifying \n\line 140.3 taxpayer may assign all or part of an anticipated refund for the \n\line 140.4 current and future taxable years to a financial institution or a \n\line 140.5 qualifying organization. A financial institution or qualifying \n\line 140.6 organization accepting assignment must pay the amount secured by \n\line 140.7 the assignment to a third-party vendor. The commissioner of \n\line 140.8 children, families, and learning shall {\strike provide a list of} \n\line 140.9 {\strike categories of}{\ul , upon request from a third-party vendor, certify} \n\line 140.10 {\ul that the vendor's} products and services {\strike that} qualify for the \n\line 140.11 education credit {\strike to financial institutions and qualifying} \n\line 140.12 {\strike organizations}. {\ul A denial of a certification is subject to the} \n\line 140.13 {\ul contested case procedure under chapter 14.} A financial \n\line 140.14 institution or qualifying organization that accepts assignments \n\line 140.15 under this section must verify as part of the assignment \n\line 140.16 documentation that the product or service to be provided by the \n\line 140.17 third-party vendor {\strike qualifies} {\ul has been certified by the} \n\line 140.18 {\ul commissioner of children, families, and learning as qualifying} \n\line 140.19 for the education credit. The amount assigned for the current \n\line 140.20 and future taxable years may not exceed the maximum allowable \n\line 140.21 education credit for the current taxable year. Both the \n\line 140.22 taxpayer and spouse must consent to the assignment of a refund \n\line 140.23 from a joint return. \n\line 140.24 [EFFECTIVE DATE.] {\ul This section is effective for assignments} \n\line 140.25 {\ul made on or after the day following final enactment.} \n\line 140.26 Sec. 13. Minnesota Statutes 2002, section 290.0802, \n\line 140.27 subdivision 1, is amended to read: \n\line 140.28 Subdivision 1. [DEFINITIONS.] For purposes of this \n\line 140.29 section, the following terms have the meanings given. \n\line 140.30 (a) "Adjusted gross income" means federal adjusted gross \n\line 140.31 income as used in section 22(d) of the Internal Revenue Code for \n\line 140.32 the taxable year, plus a lump sum distribution as defined in \n\line 140.33 section 402(e)(3) of the Internal Revenue Code, and less any \n\line 140.34 pension, annuity, or disability benefits included in federal \n\line 140.35 gross income but not subject to state taxation other than the \n\line 140.36 subtraction allowed under section 290.01, subdivision 19b, \n\line 141.1 clause (4). \n\line 141.2 (b) "Disability income" means disability income as defined \n\line 141.3 in section 22(c)(2)(B)(iii) of the Internal Revenue Code. \n\line 141.4 (c) "Nontaxable retirement and disability benefits" means \n\line 141.5 the amount of pension, annuity, or disability benefits that \n\line 141.6 would be included in the reduction under section 22(c)(3) of the \n\line 141.7 Internal Revenue Code and pension, annuity, or disability \n\line 141.8 benefits included in federal gross income but not subject to \n\line 141.9 state taxation {\strike other than the subtraction allowed under section} \n\line 141.10 {\strike 290.01, subdivision 19b, clause (4)}. \n\line 141.11 (d) "Qualified individual" means a qualified individual as \n\line 141.12 defined in section 22(b) of the Internal Revenue Code. \n\line 141.13 {\strike (e) "Social security benefits above the second federal} \n\line 141.14 {\strike threshold" means the amount of social security benefits included} \n\line 141.15 {\strike in federal taxable income due to the provisions of section 13215} \n\line 141.16 {\strike of the Omnibus Budget Reconciliation Act of 1993, Public Law} \n\line 141.17 {\strike Number 103-66.} \n\line 141.18 [EFFECTIVE DATE.] {\ul This section is effective for tax years} \n\line 141.19 {\ul beginning after December 31, 2002.} \n\line 141.20 Sec. 14. Minnesota Statutes 2002, section 291.005, \n\line 141.21 subdivision 1, is amended to read: \n\line 141.22 Subdivision 1. Unless the context otherwise clearly \n\line 141.23 requires, the following terms used in this chapter shall have \n\line 141.24 the following meanings: \n\line 141.25 (1) "Federal gross estate" means the gross estate of a \n\line 141.26 decedent as valued and otherwise determined for federal estate \n\line 141.27 tax purposes by federal taxing authorities pursuant to the \n\line 141.28 provisions of the Internal Revenue Code. \n\line 141.29 (2) "Minnesota gross estate" means the federal gross estate \n\line 141.30 of a decedent after (a) excluding therefrom any property \n\line 141.31 included therein which has its situs outside Minnesota {\strike and} \n\line 141.32 {\strike pensions exempt from tax under this chapter pursuant to section} \n\line 141.33 {\strike 352.15, subdivision 1; 353.15, subdivision 1; 354.10,} \n\line 141.34 {\strike subdivision 1; 354B.30; or 354C.165}, and (b) including therein \n\line 141.35 any property omitted from the federal gross estate which is \n\line 141.36 includable therein, has its situs in Minnesota, and was not \n\line 142.1 disclosed to federal taxing authorities. \n\line 142.2 (3) "Personal representative" means the executor, \n\line 142.3 administrator or other person appointed by the court to \n\line 142.4 administer and dispose of the property of the decedent. If \n\line 142.5 there is no executor, administrator or other person appointed, \n\line 142.6 qualified, and acting within this state, then any person in \n\line 142.7 actual or constructive possession of any property having a situs \n\line 142.8 in this state which is included in the federal gross estate of \n\line 142.9 the decedent shall be deemed to be a personal representative to \n\line 142.10 the extent of the property and the Minnesota estate tax due with \n\line 142.11 respect to the property. \n\line 142.12 (4) "Resident decedent" means an individual whose domicile \n\line 142.13 at the time of death was in Minnesota. \n\line 142.14 (5) "Nonresident decedent" means an individual whose \n\line 142.15 domicile at the time of death was not in Minnesota. \n\line 142.16 (6) "Situs of property" means, with respect to real \n\line 142.17 property, the state or country in which it is located; with \n\line 142.18 respect to tangible personal property, the state or country in \n\line 142.19 which it was normally kept or located at the time of the \n\line 142.20 decedent's death; and with respect to intangible personal \n\line 142.21 property, the state or country in which the decedent was \n\line 142.22 domiciled at death. \n\line 142.23 (7) "Commissioner" means the commissioner of revenue or any \n\line 142.24 person to whom the commissioner has delegated functions under \n\line 142.25 this chapter. \n\line 142.26 (8) "Internal Revenue Code" means the United States \n\line 142.27 Internal Revenue Code of 1986, as amended through December 31, \n\line 142.28 {\strike 2000} {\ul 2002}. \n\line 142.29 [EFFECTIVE DATE.] {\ul This section is effective for estates of} \n\line 142.30 {\ul decedents dying after December 31, 2002.} \n\line 142.31 Sec. 15. Minnesota Statutes 2002, section 291.03, \n\line 142.32 subdivision 1, is amended to read: \n\line 142.33 Subdivision 1. [TAX AMOUNT.] The tax imposed shall be an \n\line 142.34 amount equal to the proportion of the maximum credit computed \n\line 142.35 under section 2011 of the Internal Revenue Code{\ul , as amended} \n\line 142.36 {\ul through December 31, 2000,} for state death taxes as the \n\line 143.1 Minnesota gross estate bears to the value of the federal gross \n\line 143.2 estate. {\strike For a resident decedent, the tax shall be the maximum} \n\line 143.3 {\strike credit computed under section 2011 of the Internal Revenue Code} \n\line 143.4 {\strike reduced by the amount of the death tax paid the other state and} \n\line 143.5 {\strike credited against the federal estate tax if this results in a} \n\line 143.6 {\strike larger amount of tax than the proportionate amount of the} \n\line 143.7 {\strike credit.} The tax determined under this paragraph shall not be \n\line 143.8 greater than the federal estate tax computed under section 2001 \n\line 143.9 of the Internal Revenue Code after the allowance of the federal \n\line 143.10 credits allowed under section 2010 of the Internal Revenue Code \n\line 143.11 of 1986, as amended through December 31, 2000. {\ul For the purposes} \n\line 143.12 {\ul of this section, expenses which are deducted for federal income} \n\line 143.13 {\ul tax purposes under section 642(g) of the Internal Revenue Code} \n\line 143.14 {\ul as amended through December 31, 2002, are not allowable in} \n\line 143.15 {\ul computing the tax under this chapter.} \n\line 143.16 [EFFECTIVE DATE.] {\ul This section is effective for estates of} \n\line 143.17 {\ul decedents dying after December 31, 2002.} \n\line 143.18 Sec. 16. Minnesota Statutes 2002, section 352.15, \n\line 143.19 subdivision 1, is amended to read: \n\line 143.20 Subdivision 1. [EXEMPTION; EXCEPTIONS.] None of the money, \n\line 143.21 annuities, or other benefits mentioned in this chapter is \n\line 143.22 assignable either in law or in equity or subject to {\strike state estate} \n\line 143.23 {\strike tax, or to} execution, levy, attachment, garnishment, or other \n\line 143.24 legal process, except as provided in subdivision 1a or section \n\line 143.25 518.58, 518.581, or 518.6111. \n\line 143.26 [EFFECTIVE DATE.] {\ul This section is effective for estates of} \n\line 143.27 {\ul decedents dying after December 31, 2002.} \n\line 143.28 Sec. 17. Minnesota Statutes 2002, section 353.15, \n\line 143.29 subdivision 1, is amended to read: \n\line 143.30 Subdivision 1. [EXEMPTION; EXCEPTIONS.] No money, annuity, \n\line 143.31 or benefit provided for in this chapter is assignable or subject \n\line 143.32 {\strike to any state estate tax, or} to execution, levy, attachment, \n\line 143.33 garnishment, or legal process, except as provided in subdivision \n\line 143.34 2 or section 518.58, 518.581, or 518.6111. \n\line 143.35 [EFFECTIVE DATE.] {\ul This section is effective for estates of} \n\line 143.36 {\ul decedents dying after December 31, 2002.} \n\line 144.1 Sec. 18. Minnesota Statutes 2002, section 354.10, \n\line 144.2 subdivision 1, is amended to read: \n\line 144.3 Subdivision 1. [EXEMPTION; EXCEPTIONS.] The right of a \n\line 144.4 teacher to take advantage of the benefits provided by this \n\line 144.5 chapter, is a personal right only and is not assignable. All \n\line 144.6 money to the credit of a teacher's account in the fund or any \n\line 144.7 money payable to the teacher from the fund belongs to the state \n\line 144.8 of Minnesota until actually paid to the teacher or a beneficiary \n\line 144.9 under this chapter. The association may acknowledge a properly \n\line 144.10 completed power of attorney form. An assignment or attempted \n\line 144.11 assignment of a teacher's interest in the fund, or of the \n\line 144.12 beneficiary's interest in the fund, by a teacher or a \n\line 144.13 beneficiary is void and exempt {\strike from taxation under chapter 291} \n\line 144.14 {\strike and} from garnishment or levy under attachment or execution, \n\line 144.15 except as provided in subdivision 2 or 3, or section 518.58, \n\line 144.16 518.581, or 518.6111. \n\line 144.17 [EFFECTIVE DATE.] {\ul This section is effective for estates of} \n\line 144.18 {\ul decedents dying after December 31, 2002.} \n\line 144.19 Sec. 19. Minnesota Statutes 2002, section 354B.30, is \n\line 144.20 amended to read: \n\line 144.21 354B.30 [PROHIBITION ON LOANS OR PRETERMINATION \n\line 144.22 DISTRIBUTIONS.] \n\line 144.23 (a) No participant may obtain a loan from the plan or \n\line 144.24 obtain any distribution from the plan at a time before the \n\line 144.25 participant terminates the employment that gave rise to plan \n\line 144.26 coverage. \n\line 144.27 (b) No amounts to the credit of the plan are assignable \n\line 144.28 either in law or in equity, {\strike are subject to state estate tax,} or \n\line 144.29 are subject to execution, levy, attachment, garnishment, or \n\line 144.30 other legal process, except as provided in section 518.58, \n\line 144.31 518.581, or 518.6111. \n\line 144.32 [EFFECTIVE DATE.] {\ul This section is effective for estates of} \n\line 144.33 {\ul decedents dying after December 31, 2002.} \n\line 144.34 Sec. 20. Minnesota Statutes 2002, section 354C.165, is \n\line 144.35 amended to read: \n\line 144.36 354C.165 [PROHIBITION ON LOANS OR PRETERMINATION \n\line 145.1 DISTRIBUTIONS.] \n\line 145.2 (a) Except as provided in paragraph (c), no participant may \n\line 145.3 obtain a loan or any distribution from the plan before the \n\line 145.4 participant terminates the employment that gave rise to plan \n\line 145.5 coverage. \n\line 145.6 (b) No amounts to the credit of the plan are assignable \n\line 145.7 either in law or in equity, {\strike are subject to state estate tax,} or \n\line 145.8 are subject to execution, levy, attachment, garnishment, or \n\line 145.9 other legal process, except as provided in section 518.58, \n\line 145.10 518.581, or 518.6111. \n\line 145.11 (c) Unless prohibited by or subject to a penalty under \n\line 145.12 federal law, a teacher who is a participant in the supplemental \n\line 145.13 retirement plan may request, in writing, a transfer of all or a \n\line 145.14 portion of the funds accumulated in the person's supplemental \n\line 145.15 plan account to the teachers retirement association to purchase \n\line 145.16 service credit under sections 354.53, 354.533, 354.534, 354.535, \n\line 145.17 354.536, 354.537, and 354.538 or to the teachers retirement fund \n\line 145.18 association to purchase service credit under sections 354A.097, \n\line 145.19 354A.098, 354A.099, 354A.101, 354A.102, 354A.103, and 354A.104. \n\line 145.20 Upon receipt of a valid request, the board shall execute the \n\line 145.21 transfer. The transfer must be a fund-to-fund transfer, and in \n\line 145.22 no event shall the participant directly receive any of the funds \n\line 145.23 while still employed by the board. In no event may the board \n\line 145.24 transfer more than the participant's account balance. The \n\line 145.25 board, in cooperation with the executive director of the \n\line 145.26 teachers retirement association, shall develop the forms for \n\line 145.27 requesting a transfer and the procedures for executing the \n\line 145.28 requested transfers. \n\line 145.29 [EFFECTIVE DATE.] {\ul This section is effective for estates of} \n\line 145.30 {\ul decedents dying after December 31, 2002.} \n\line 145.31 Sec. 21. Laws 2001, First Special Session chapter 5, \n\line 145.32 article 9, section 12, the effective date, is amended to read: \n\line 145.33 [EFFECTIVE DATE.] This section is effective for assignment \n\line 145.34 of refunds filed with the commissioner after December 31, 2001. \n\line 145.35 {\strike The time period for filing assignments expires December 31,} \n\line 145.36 {\strike 2003, but assignments filed on or before that date remain in} \n\line 146.1 {\strike effect until satisfied or canceled.} \n\line 146.2 Sec. 22. [REPEALER.] \n\line 146.3 {\ul (a) Minnesota Statutes 2002, sections 290.0671, subdivision} \n\line 146.4 {\ul 3; and 290.0675, subdivision 5, are repealed effective for tax} \n\line 146.5 {\ul years beginning after December 31, 2002.} \n\line 146.6 {\ul (b) Minnesota Rules, parts 8007.0300, subpart 3; 8009.7100;} \n\line 146.7 {\ul 8009.7200; 8009.7300; 8009.7400; and 8092.1000, are repealed} \n\line 146.8 {\ul effective the day following final enactment.} \n\line 146.9 ARTICLE 7 \n\line 146.10 FEDERAL UPDATE \n\line 146.11 Section 1. Minnesota Statutes 2002, section 289A.02, \n\line 146.12 subdivision 7, is amended to read: \n\line 146.13 Subd. 7. [INTERNAL REVENUE CODE.] Unless specifically \n\line 146.14 defined otherwise, "Internal Revenue Code" means the Internal \n\line 146.15 Revenue Code of 1986, as amended through {\strike March 15} {\ul December 31}, \n\line 146.16 2002. \n\line 146.17 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 146.18 {\ul following final enactment.} \n\line 146.19 Sec. 2. Minnesota Statutes 2002, section 290.01, \n\line 146.20 subdivision 19, is amended to read: \n\line 146.21 Subd. 19. [NET INCOME.] The term "net income" means the \n\line 146.22 federal taxable income, as defined in section 63 of the Internal \n\line 146.23 Revenue Code of 1986, as amended through the date named in this \n\line 146.24 subdivision, incorporating any elections made by the taxpayer in \n\line 146.25 accordance with the Internal Revenue Code in determining federal \n\line 146.26 taxable income for federal income tax purposes, and with the \n\line 146.27 modifications provided in subdivisions 19a to 19f. \n\line 146.28 In the case of a regulated investment company or a fund \n\line 146.29 thereof, as defined in section 851(a) or 851(g) of the Internal \n\line 146.30 Revenue Code, federal taxable income means investment company \n\line 146.31 taxable income as defined in section 852(b)(2) of the Internal \n\line 146.32 Revenue Code, except that: \n\line 146.33 (1) the exclusion of net capital gain provided in section \n\line 146.34 852(b)(2)(A) of the Internal Revenue Code does not apply; \n\line 146.35 (2) the deduction for dividends paid under section \n\line 146.36 852(b)(2)(D) of the Internal Revenue Code must be applied by \n\line 147.1 allowing a deduction for capital gain dividends and \n\line 147.2 exempt-interest dividends as defined in sections 852(b)(3)(C) \n\line 147.3 and 852(b)(5) of the Internal Revenue Code; and \n\line 147.4 (3) the deduction for dividends paid must also be applied \n\line 147.5 in the amount of any undistributed capital gains which the \n\line 147.6 regulated investment company elects to have treated as provided \n\line 147.7 in section 852(b)(3)(D) of the Internal Revenue Code. \n\line 147.8 The net income of a real estate investment trust as defined \n\line 147.9 and limited by section 856(a), (b), and (c) of the Internal \n\line 147.10 Revenue Code means the real estate investment trust taxable \n\line 147.11 income as defined in section 857(b)(2) of the Internal Revenue \n\line 147.12 Code. \n\line 147.13 The net income of a designated settlement fund as defined \n\line 147.14 in section 468B(d) of the Internal Revenue Code means the gross \n\line 147.15 income as defined in section 468B(b) of the Internal Revenue \n\line 147.16 Code. \n\line 147.17 The provisions of sections 1113(a), 1117, 1206(a), 1313(a), \n\line 147.18 1402(a), 1403(a), 1443, 1450, 1501(a), 1605, 1611(a), 1612, \n\line 147.19 1616, 1617, 1704(l), and 1704(m) of the Small Business Job \n\line 147.20 Protection Act, Public Law Number 104-188, the provisions of \n\line 147.21 Public Law Number 104-117, the provisions of sections 313(a) and \n\line 147.22 (b)(1), 602(a), 913(b), 941, 961, 971, 1001(a) and (b), 1002, \n\line 147.23 1003, 1012, 1013, 1014, 1061, 1062, 1081, 1084(b), 1086, 1087, \n\line 147.24 1111(a), 1131(b) and (c), 1211(b), 1213, 1530(c)(2), 1601(f)(5) \n\line 147.25 and (h), and 1604(d)(1) of the Taxpayer Relief Act of 1997, \n\line 147.26 Public Law Number 105-34, the provisions of section 6010 of the \n\line 147.27 Internal Revenue Service Restructuring and Reform Act of 1998, \n\line 147.28 Public Law Number 105-206, the provisions of section 4003 of the \n\line 147.29 Omnibus Consolidated and Emergency Supplemental Appropriations \n\line 147.30 Act, 1999, Public Law Number 105-277, and the provisions of \n\line 147.31 section 318 of the Consolidated Appropriation Act of 2001, \n\line 147.32 Public Law Number 106-554, shall become effective at the time \n\line 147.33 they become effective for federal purposes. \n\line 147.34 The Internal Revenue Code of 1986, as amended through \n\line 147.35 December 31, 1996, shall be in effect for taxable years \n\line 147.36 beginning after December 31, 1996. \n\line 148.1 The provisions of sections 202(a) and (b), 221(a), 225, \n\line 148.2 312, 313, 913(a), 934, 962, 1004, 1005, 1052, 1063, 1084(a) and \n\line 148.3 (c), 1089, 1112, 1171, 1204, 1271(a) and (b), 1305(a), 1306, \n\line 148.4 1307, 1308, 1309, 1501(b), 1502(b), 1504(a), 1505, 1527, 1528, \n\line 148.5 1530, 1601(d), (e), (f), and (i) and 1602(a), (b), (c), and (e) \n\line 148.6 of the Taxpayer Relief Act of 1997, Public Law Number 105-34, \n\line 148.7 the provisions of sections 6004, 6005, 6012, 6013, 6015, 6016, \n\line 148.8 7002, and 7003 of the Internal Revenue Service Restructuring and \n\line 148.9 Reform Act of 1998, Public Law Number 105-206, the provisions of \n\line 148.10 section 3001 of the Omnibus Consolidated and Emergency \n\line 148.11 Supplemental Appropriations Act, 1999, Public Law Number \n\line 148.12 105-277, the provisions of section 3001 of the Miscellaneous \n\line 148.13 Trade and Technical Corrections Act of 1999, Public Law Number \n\line 148.14 106-36, and the provisions of section 316 of the Consolidated \n\line 148.15 Appropriation Act of 2001, Public Law Number 106-554, shall \n\line 148.16 become effective at the time they become effective for federal \n\line 148.17 purposes. \n\line 148.18 The Internal Revenue Code of 1986, as amended through \n\line 148.19 December 31, 1997, shall be in effect for taxable years \n\line 148.20 beginning after December 31, 1997. \n\line 148.21 The provisions of sections 5002, 6009, 6011, and 7001 of \n\line 148.22 the Internal Revenue Service Restructuring and Reform Act of \n\line 148.23 1998, Public Law Number 105-206, the provisions of section 9010 \n\line 148.24 of the Transportation Equity Act for the 21st Century, Public \n\line 148.25 Law Number 105-178, the provisions of sections 1004, 4002, and \n\line 148.26 5301 of the Omnibus Consolidation and Emergency Supplemental \n\line 148.27 Appropriations Act, 1999, Public Law Number 105-277, the \n\line 148.28 provision of section 303 of the Ricky Ray Hemophilia Relief Fund \n\line 148.29 Act of 1998, Public Law Number 105-369, the provisions of \n\line 148.30 sections 532, 534, 536, 537, and 538 of the Ticket to Work and \n\line 148.31 Work Incentives Improvement Act of 1999, Public Law Number \n\line 148.32 106-170, the provisions of the Installment Tax Correction Act of \n\line 148.33 2000, Public Law Number 106-573, and the provisions of section \n\line 148.34 309 of the Consolidated Appropriation Act of 2001, Public Law \n\line 148.35 Number 106-554, shall become effective at the time they become \n\line 148.36 effective for federal purposes. \n\line 149.1 The Internal Revenue Code of 1986, as amended through \n\line 149.2 December 31, 1998, shall be in effect for taxable years \n\line 149.3 beginning after December 31, 1998. \n\line 149.4 The provisions of the FSC Repeal and Extraterritorial \n\line 149.5 Income Exclusion Act of 2000, Public Law Number 106-519, and the \n\line 149.6 provision of section 412 of the Job Creation and Worker \n\line 149.7 Assistance Act of 2002, Public Law Number 107-147, shall become \n\line 149.8 effective at the time it became effective for federal purposes. \n\line 149.9 The Internal Revenue Code of 1986, as amended through \n\line 149.10 December 31, 1999, shall be in effect for taxable years \n\line 149.11 beginning after December 31, 1999. The provisions of sections \n\line 149.12 306 and 401 of the Consolidated Appropriation Act of 2001, \n\line 149.13 Public Law Number 106-554, and the provision of section \n\line 149.14 632(b)(2)(A) of the Economic Growth and Tax Relief \n\line 149.15 Reconciliation Act of 2001, Public Law Number 107-16, and \n\line 149.16 provisions of sections 101 and 402 of the Job Creation and \n\line 149.17 Worker Assistance Act of 2002, Public Law Number 107-147, shall \n\line 149.18 become effective at the same time it became effective for \n\line 149.19 federal purposes. \n\line 149.20 The Internal Revenue Code of 1986, as amended through \n\line 149.21 December 31, 2000, shall be in effect for taxable years \n\line 149.22 beginning after December 31, 2000. The provisions of sections \n\line 149.23 659a and 671 of the Economic Growth and Tax Relief \n\line 149.24 Reconciliation Act of 2001, Public Law Number 107-16, the \n\line 149.25 provisions of sections 104, 105, and 111 of the Victims of \n\line 149.26 Terrorism Tax Relief Act of 2001, Public Law Number 107-134, and \n\line 149.27 the provisions of sections 201, 403, 413, and 606 of the Job \n\line 149.28 Creation and Worker Assistance Act of 2002, Public Law Number \n\line 149.29 107-147, shall become effective at the same time it became \n\line 149.30 effective for federal purposes. \n\line 149.31 The Internal Revenue Code of 1986, as amended through March \n\line 149.32 15, 2002, shall be in effect for taxable years beginning after \n\line 149.33 December 31, 2001. \n\line 149.34 The provisions of sections 101 and 102 of the Victims of \n\line 149.35 Terrorism Tax Relief Act of 2001, Public Law Number 107-134, \n\line 149.36 shall become effective at the same time it becomes effective for \n\line 150.1 federal purposes. \n\line 150.2 {\ul The Internal Revenue Code of 1986, as amended through} \n\line 150.3 {\ul December 31, 2002, shall be in effect for taxable years} \n\line 150.4 {\ul beginning after December 31, 2002.} \n\line 150.5 Except as otherwise provided, references to the Internal \n\line 150.6 Revenue Code in subdivisions 19a to 19g mean the code in effect \n\line 150.7 for purposes of determining net income for the applicable year. \n\line 150.8 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 150.9 {\ul following final enactment.} \n\line 150.10 Sec. 3. Minnesota Statutes 2002, section 290.01, \n\line 150.11 subdivision 31, is amended to read: \n\line 150.12 Subd. 31. [INTERNAL REVENUE CODE.] Unless specifically \n\line 150.13 defined otherwise, "Internal Revenue Code" means the Internal \n\line 150.14 Revenue Code of 1986, as amended through {\strike March 15} {\ul December 31}, \n\line 150.15 2002. \n\line 150.16 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 150.17 {\ul following final enactment.} \n\line 150.18 Sec. 4. Minnesota Statutes 2002, section 290A.03, \n\line 150.19 subdivision 15, is amended to read: \n\line 150.20 Subd. 15. [INTERNAL REVENUE CODE.] "Internal Revenue Code" \n\line 150.21 means the Internal Revenue Code of 1986, as amended \n\line 150.22 through {\strike March 15} {\ul December 31}, 2002. \n\line 150.23 [EFFECTIVE DATE.] {\ul This section is effective for refunds} \n\line 150.24 {\ul payable for rents paid in 2003 and thereafter and property taxes} \n\line 150.25 {\ul payable in 2004 and thereafter.} \n\line 150.26 ARTICLE 8 \n\line 150.27 DEPARTMENT PROPERTY TAX INITIATIVES \n\line 150.28 Section 1. Minnesota Statutes 2002, section 270.06, is \n\line 150.29 amended to read: \n\line 150.30 270.06 [POWERS AND DUTIES.] \n\line 150.31 The commissioner of revenue shall: \n\line 150.32 (1) have and exercise general supervision over the \n\line 150.33 administration of the assessment and taxation laws of the state, \n\line 150.34 over assessors, town, county, and city boards of review and \n\line 150.35 equalization, and all other assessing officers in the \n\line 150.36 performance of their duties, to the end that all assessments of \n\line 151.1 property be made relatively just and equal in compliance with \n\line 151.2 the laws of the state; \n\line 151.3 (2) confer with, advise, and give the necessary \n\line 151.4 instructions and directions to local assessors and local boards \n\line 151.5 of review throughout the state as to their duties under the laws \n\line 151.6 of the state; \n\line 151.7 (3) direct proceedings, actions, and prosecutions to be \n\line 151.8 instituted to enforce the laws relating to the liability and \n\line 151.9 punishment of public officers and officers and agents of \n\line 151.10 corporations for failure or negligence to comply with the \n\line 151.11 provisions of the laws of this state governing returns of \n\line 151.12 assessment and taxation of property, and cause complaints to be \n\line 151.13 made against local assessors, members of boards of equalization, \n\line 151.14 members of boards of review, or any other assessing or taxing \n\line 151.15 officer, to the proper authority, for their removal from office \n\line 151.16 for misconduct or negligence of duty; \n\line 151.17 (4) require county attorneys to assist in the commencement \n\line 151.18 of prosecutions in actions or proceedings for removal, \n\line 151.19 forfeiture and punishment for violation of the laws of this \n\line 151.20 state in respect to the assessment and taxation of property in \n\line 151.21 their respective districts or counties; \n\line 151.22 (5) require town, city, county, and other public officers \n\line 151.23 to report information as to the assessment of property, \n\line 151.24 collection of taxes received from licenses and other sources, \n\line 151.25 and such other information as may be needful in the work of the \n\line 151.26 department of revenue, in such form and upon such blanks as the \n\line 151.27 commissioner may prescribe; \n\line 151.28 (6) require individuals, copartnerships, companies, \n\line 151.29 associations, and corporations to furnish information concerning \n\line 151.30 their capital, funded or other debt, current assets and \n\line 151.31 liabilities, earnings, operating expenses, taxes, as well as all \n\line 151.32 other statements now required by law for taxation purposes; \n\line 151.33 (7) subpoena witnesses, at a time and place reasonable \n\line 151.34 under the circumstances, to appear and give testimony, and to \n\line 151.35 produce books, records, papers and documents for inspection and \n\line 151.36 copying relating to any matter which the commissioner may have \n\line 152.1 authority to investigate or determine; \n\line 152.2 (8) issue a subpoena which does not identify the person or \n\line 152.3 persons with respect to whose liability the subpoena is issued, \n\line 152.4 but only if (a) the subpoena relates to the investigation of a \n\line 152.5 particular person or ascertainable group or class of persons, \n\line 152.6 (b) there is a reasonable basis for believing that such person \n\line 152.7 or group or class of persons may fail or may have failed to \n\line 152.8 comply with any law administered by the commissioner, (c) the \n\line 152.9 information sought to be obtained from the examination of the \n\line 152.10 records (and the identity of the person or persons with respect \n\line 152.11 to whose liability the subpoena is issued) is not readily \n\line 152.12 available from other sources, (d) the subpoena is clear and \n\line 152.13 specific as to the information sought to be obtained, and (e) \n\line 152.14 the information sought to be obtained is limited solely to the \n\line 152.15 scope of the investigation. Provided further that the party \n\line 152.16 served with a subpoena which does not identify the person or \n\line 152.17 persons with respect to whose tax liability the subpoena is \n\line 152.18 issued shall have the right, within 20 days after service of the \n\line 152.19 subpoena, to petition the district court for the judicial \n\line 152.20 district in which lies the county in which that party is located \n\line 152.21 for a determination as to whether the commissioner of revenue \n\line 152.22 has complied with all the requirements in (a) to (e), and thus, \n\line 152.23 whether the subpoena is enforceable. If no such petition is \n\line 152.24 made by the party served within the time prescribed, the \n\line 152.25 subpoena shall have the force and effect of a court order; \n\line 152.26 (9) cause the deposition of witnesses residing within or \n\line 152.27 without the state, or absent therefrom, to be taken, upon notice \n\line 152.28 to the interested party, if any, in like manner that depositions \n\line 152.29 of witnesses are taken in civil actions in the district court, \n\line 152.30 in any matter which the commissioner may have authority to \n\line 152.31 investigate or determine; \n\line 152.32 (10) investigate the tax laws of other states and countries \n\line 152.33 and to formulate and submit to the legislature such legislation \n\line 152.34 as the commissioner may deem expedient to prevent evasions of \n\line 152.35 assessment and taxing laws, and secure just and equal taxation \n\line 152.36 and improvement in the system of assessment and taxation in this \n\line 153.1 state; \n\line 153.2 (11) consult and confer with the governor upon the subject \n\line 153.3 of taxation, the administration of the laws in regard thereto, \n\line 153.4 and the progress of the work of the department of revenue, and \n\line 153.5 furnish the governor, from time to time, such assistance and \n\line 153.6 information as the governor may require relating to tax matters; \n\line 153.7 (12) transmit to the governor, on or before the third \n\line 153.8 Monday in December of each even-numbered year, and to each \n\line 153.9 member of the legislature, on or before November 15 of each \n\line 153.10 even-numbered year, the report of the department of revenue for \n\line 153.11 the preceding years, showing all the taxable property in the \n\line 153.12 state and the value of the same, in tabulated form; \n\line 153.13 (13) inquire into the methods of assessment and taxation \n\line 153.14 and ascertain whether the assessors faithfully discharge their \n\line 153.15 duties, particularly as to their compliance with the laws \n\line 153.16 requiring the assessment of all property not exempt from \n\line 153.17 taxation; \n\line 153.18 (14) administer and enforce the assessment and collection \n\line 153.19 of state taxes and fees, including the use of any remedy \n\line 153.20 available to nongovernmental creditors, and, from time to time, \n\line 153.21 make, publish, and distribute rules for the administration and \n\line 153.22 enforcement of {\strike assessments and fees} {\ul laws} administered by the \n\line 153.23 commissioner and state tax laws. The rules have the force of \n\line 153.24 law; \n\line 153.25 (15) prepare blank forms for the returns required by state \n\line 153.26 tax law and distribute them throughout the state, furnishing \n\line 153.27 them subject to charge on application; \n\line 153.28 (16) prescribe rules governing the qualification and \n\line 153.29 practice of agents, attorneys, or other persons representing \n\line 153.30 taxpayers before the commissioner. The rules may require that \n\line 153.31 those persons, agents, and attorneys show that they are of good \n\line 153.32 character and in good repute, have the necessary qualifications \n\line 153.33 to give taxpayers valuable services, and are otherwise competent \n\line 153.34 to advise and assist taxpayers in the presentation of their case \n\line 153.35 before being recognized as representatives of taxpayers. After \n\line 153.36 due notice and opportunity for hearing, the commissioner may \n\line 154.1 suspend and bar from further practice before the commissioner \n\line 154.2 any person, agent, or attorney who is shown to be incompetent or \n\line 154.3 disreputable, who refuses to comply with the rules, or who with \n\line 154.4 intent to defraud, willfully or knowingly deceives, misleads, or \n\line 154.5 threatens a taxpayer or prospective taxpayer, by words, \n\line 154.6 circular, letter, or by advertisement. This clause does not \n\line 154.7 curtail the rights of individuals to appear in their own behalf \n\line 154.8 or partners or corporations' officers to appear in behalf of \n\line 154.9 their respective partnerships or corporations; \n\line 154.10 (17) appoint agents as the commissioner considers necessary \n\line 154.11 to make examinations and determinations. The agents have the \n\line 154.12 rights and powers conferred on the commissioner to subpoena, \n\line 154.13 examine, and copy books, records, papers, or memoranda, subpoena \n\line 154.14 witnesses, administer oaths and affirmations, and take \n\line 154.15 testimony. In addition to administrative subpoenas of the \n\line 154.16 commissioner and the agents, upon demand of the commissioner or \n\line 154.17 an agent, the court administrator of any district court shall \n\line 154.18 issue a subpoena for the attendance of a witness or the \n\line 154.19 production of books, papers, records, or memoranda before the \n\line 154.20 agent for inspection and copying. Disobedience of a court \n\line 154.21 administrator's subpoena shall be punished by the district court \n\line 154.22 of the district in which the subpoena is issued, or in the case \n\line 154.23 of a subpoena issued by the commissioner or an agent, by the \n\line 154.24 district court of the district in which the party served with \n\line 154.25 the subpoena is located, in the same manner as contempt of the \n\line 154.26 district court; \n\line 154.27 (18) appoint and employ additional help, purchase supplies \n\line 154.28 or materials, or incur other expenditures in the enforcement of \n\line 154.29 state tax laws as considered necessary. The salaries of all \n\line 154.30 agents and employees provided for in this chapter shall be fixed \n\line 154.31 by the appointing authority, subject to the approval of the \n\line 154.32 commissioner of administration; \n\line 154.33 (19) execute and administer any agreement with the \n\line 154.34 secretary of the treasury of the United States or a \n\line 154.35 representative of another state regarding the exchange of \n\line 154.36 information and administration of the tax laws; \n\line 155.1 (20) authorize the use of unmarked motor vehicles to \n\line 155.2 conduct seizures or criminal investigations pursuant to the \n\line 155.3 commissioner's authority; and \n\line 155.4 (21) exercise other powers and perform other duties \n\line 155.5 required of or imposed upon the commissioner of revenue by law. \n\line 155.6 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 155.7 {\ul following final enactment.} \n\line 155.8 Sec. 2. Minnesota Statutes 2002, section 270.10, \n\line 155.9 subdivision 1a, is amended to read: \n\line 155.10 Subd. 1a. [NOTIFICATION TO TAXPAYER.] At the same time \n\line 155.11 that notice of the assessment, determination, or order of the \n\line 155.12 commissioner is given to a taxpayer, the taxpayer must be \n\line 155.13 notified in writing of the right to appeal to the tax court, and \n\line 155.14 if applicable, to the small claims division. Except in the case \n\line 155.15 of mathematical or clerical errors, the notice must contain a \n\line 155.16 description of the basis for, including applicable law and other \n\line 155.17 factors considered in the determination, and a listing of the \n\line 155.18 amounts of tax due, interest, additions to tax, and penalties. \n\line 155.19 Failure to provide all the required information does not \n\line 155.20 invalidate the notice for purposes of satisfying statutory \n\line 155.21 notice requirements if the notice contains sufficient \n\line 155.22 information to advise the taxpayer that an assessment, order, or \n\line 155.23 other determination has been made. The taxpayer may request \n\line 155.24 further clarification within the time provided for appealing the \n\line 155.25 determination. {\strike In any notice of assessment, determination, or} \n\line 155.26 {\strike order dealing with property valuation or assessment for property} \n\line 155.27 {\strike tax purposes by the commissioner of revenue or a local unit of} \n\line 155.28 {\strike government, the taxpayer must be notified in writing that a} \n\line 155.29 {\strike taxpayer must appeal to the town or city board of equalization} \n\line 155.30 {\strike and to the county board of equalization before appealing to the} \n\line 155.31 {\strike small claims division of the tax court, except for those} \n\line 155.32 {\strike taxpayers whose original assessments are determined by the} \n\line 155.33 {\strike commissioner of revenue.} \n\line 155.34 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 155.35 {\ul following final enactment.} \n\line 155.36 Sec. 3. Minnesota Statutes 2002, section 272.02, is \n\line 156.1 amended by adding a subdivision to read: \n\line 156.2 {\ul Subd. 56.} [COMPREHENSIVE HEALTH ASSOCIATION.] {\ul All property} \n\line 156.3 {\ul owned by the comprehensive health association is exempt to the} \n\line 156.4 {\ul extent provided in section 62E.10, subdivision 1.} \n\line 156.5 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 156.6 {\ul following final enactment.} \n\line 156.7 Sec. 4. Minnesota Statutes 2002, section 272.02, is \n\line 156.8 amended by adding a subdivision to read: \n\line 156.9 {\ul Subd. 57.} [PRIVATE CEMETERIES.] {\ul All property owned by} \n\line 156.10 {\ul private cemeteries is exempt to the extent provided in section} \n\line 156.11 {\ul 307.09.} \n\line 156.12 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 156.13 {\ul following final enactment.} \n\line 156.14 Sec. 5. Minnesota Statutes 2002, section 272.02, is \n\line 156.15 amended by adding a subdivision to read: \n\line 156.16 {\ul Subd. 58.} [WESTERN LAKE SUPERIOR SANITARY BOARD.] {\ul All} \n\line 156.17 {\ul property owned, leased, controlled, used, or occupied for} \n\line 156.18 {\ul public, governmental, and municipal purposes by the Western Lake} \n\line 156.19 {\ul Superior Sanitary Board is exempt to the extent provided in} \n\line 156.20 {\ul section 458D.23.} \n\line 156.21 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 156.22 {\ul following final enactment.} \n\line 156.23 Sec. 6. Minnesota Statutes 2002, section 272.02, is \n\line 156.24 amended by adding a subdivision to read: \n\line 156.25 {\ul Subd. 59.} [UNFINISHED SALE OR RENTAL PROJECTS.] {\ul Unfinished} \n\line 156.26 {\ul sale or rental projects are exempt to the extent provided in} \n\line 156.27 {\ul section 469.155, subdivision 17.} \n\line 156.28 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 156.29 {\ul following final enactment.} \n\line 156.30 Sec. 7. Minnesota Statutes 2002, section 272.02, is \n\line 156.31 amended by adding a subdivision to read: \n\line 156.32 {\ul Subd. 60.} [SKYWAYS.] {\ul The pedestrian skyway system,} \n\line 156.33 {\ul underground pedestrian concourse, the people mover system, and} \n\line 156.34 {\ul publicly owned parking structures are exempt to the extent} \n\line 156.35 {\ul provided in section 469.127.} \n\line 156.36 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 157.1 {\ul following final enactment.} \n\line 157.2 Sec. 8. Minnesota Statutes 2002, section 272.02, is \n\line 157.3 amended by adding a subdivision to read: \n\line 157.4 {\ul Subd. 61.} [MUNICIPAL RECREATION FACILITIES.] {\ul All property} \n\line 157.5 {\ul acquired and used by a city is exempt to the extent provided in} \n\line 157.6 {\ul section 471.191, subdivision 4.} \n\line 157.7 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 157.8 {\ul following final enactment.} \n\line 157.9 Sec. 9. Minnesota Statutes 2002, section 272.02, is \n\line 157.10 amended by adding a subdivision to read: \n\line 157.11 {\ul Subd. 62.} [WATER AND WASTEWATER TREATMENT \n\line 157.12 FACILITIES.] {\ul Related facilities owned by water and wastewater} \n\line 157.13 {\ul treatment providers who have contracted with a municipality to} \n\line 157.14 {\ul provide capital intensive public services to the municipality} \n\line 157.15 {\ul are exempt to the extent provided in section 471A.05.} \n\line 157.16 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 157.17 {\ul following final enactment.} \n\line 157.18 Sec. 10. Minnesota Statutes 2002, section 272.12, is \n\line 157.19 amended to read: \n\line 157.20 272.12 [CONVEYANCES, TAXES PAID BEFORE RECORDING.] \n\line 157.21 When: \n\line 157.22 (a) a deed or other instrument conveying land, \n\line 157.23 (b) a plat of any town site or addition thereto, \n\line 157.24 (c) a survey required pursuant to section 508.47, \n\line 157.25 (d) a condominium plat subject to chapter 515 or 515A or a \n\line 157.26 declaration that contains such a plat, or \n\line 157.27 (e) a common interest community plat subject to chapter \n\line 157.28 515B or a declaration that contains such a plat, \n\line 157.29 is presented to the county auditor for transfer, the auditor \n\line 157.30 shall ascertain from the records if there be taxes delinquent \n\line 157.31 upon the land described therein, or if it has been sold for \n\line 157.32 taxes. An assignment of a sheriff's or referee's certificate of \n\line 157.33 sale, when the certificate of sale describes real estate, and \n\line 157.34 certificates of redemption from mortgage or lien foreclosure \n\line 157.35 sales, when the certificate of redemption encompasses real \n\line 157.36 estate and is issued to a junior creditor, are considered \n\line 158.1 instruments conveying land for the purposes of this section and \n\line 158.2 section 272.121. If there are taxes delinquent, the auditor \n\line 158.3 shall certify to the same; and upon payment of such taxes, or in \n\line 158.4 case no taxes are delinquent, shall transfer the land upon the \n\line 158.5 books of the auditor's office, and note upon the instrument, \n\line 158.6 over official signature, the words, "no delinquent taxes and \n\line 158.7 transfer entered," or, if the land described has been sold or \n\line 158.8 assigned to an actual purchaser for taxes, the words "paid by \n\line 158.9 sale of land described within;" and, unless such statement is \n\line 158.10 made upon such instrument, the county recorder or the registrar \n\line 158.11 of titles shall refuse to receive or record the same; provided, \n\line 158.12 that sheriff's or referees' certificates of sale on execution or \n\line 158.13 foreclosure of a lien or mortgage, certificates of redemption \n\line 158.14 from mortgage or lien foreclosure sales issued to the redeeming \n\line 158.15 mortgagor or lienee, deeds of distribution made by a personal \n\line 158.16 representative in probate proceedings, decrees and judgments, \n\line 158.17 receivers receipts, patents, and copies of town or statutory \n\line 158.18 city plats, in case the original plat filed in the office of the \n\line 158.19 county recorder has been lost or destroyed, and the instruments \n\line 158.20 releasing, removing and discharging reversionary and forfeiture \n\line 158.21 provisions affecting title to land and instruments releasing, \n\line 158.22 removing or discharging easement rights in land or building or \n\line 158.23 other restrictions, may be recorded without such certificate; \n\line 158.24 and, provided that instruments conveying land and, as \n\line 158.25 appurtenant thereto an easement over adjacent tract or tracts of \n\line 158.26 land, may be recorded without such certificate as to the land \n\line 158.27 covered by such easement; and provided further, that any \n\line 158.28 instrument granting an easement made in favor of any public \n\line 158.29 utility or pipe line for conveying gas, liquids or solids in \n\line 158.30 suspension, in the nature of a right-of-way over, along, across \n\line 158.31 or under a tract of land may be recorded without such \n\line 158.32 certificate as to the land covered by such easement. {\strike Any} \n\line 158.33 {\strike instrument amending or restating the declarations, bylaws,} \n\line 158.34 {\strike plats, or other enabling} Documents governing homeowners \n\line 158.35 associations of condominiums, townhouses, common interest \n\line 158.36 ownership communities, and other planned unit developments may \n\line 159.1 be recorded without the auditor's certificate {\ul to the extent} \n\line 159.2 {\ul provided in section 515B.1-116(f)}. \n\line 159.3 A deed of distribution made by a personal representative in \n\line 159.4 a probate proceeding, a decree, or a judgment that conveys land \n\line 159.5 shall be presented to the county auditor, who shall transfer the \n\line 159.6 land upon the books of the auditor's office and note upon the \n\line 159.7 instrument, over official signature, the words, "transfer \n\line 159.8 entered", and the instrument may then be recorded. A decree or \n\line 159.9 judgment that affects title to land but does not convey land may \n\line 159.10 be recorded without presentation to the auditor. \n\line 159.11 A violation of this section by the county recorder or the \n\line 159.12 registrar of titles shall be a gross misdemeanor, and, in \n\line 159.13 addition to the punishment therefor, the recorder or registrar \n\line 159.14 shall be liable to the grantee of any instrument so recorded for \n\line 159.15 the amount of any damages sustained. \n\line 159.16 When, as a condition to permitting the recording of deed or \n\line 159.17 other instrument affecting the title to real estate previously \n\line 159.18 forfeited to the state under the provisions of sections 281.16 \n\line 159.19 to 281.25, county officials, after such real estate has been \n\line 159.20 purchased or repurchased, have required the payment of taxes \n\line 159.21 erroneously assumed to have accrued against such real estate \n\line 159.22 after forfeiture and before the date of purchase or repurchase, \n\line 159.23 the sum required to be so paid shall be refunded to the persons \n\line 159.24 entitled thereto out of moneys in the funds in which the sum so \n\line 159.25 paid was placed. Delinquent taxes are those taxes deemed \n\line 159.26 delinquent under section 279.02. \n\line 159.27 [EFFECTIVE DATE.] {\ul This section is effective for deeds or} \n\line 159.28 {\ul instruments accepted for recording or registration on or after} \n\line 159.29 {\ul July 1, 2003.} \n\line 159.30 Sec. 11. Minnesota Statutes 2002, section 273.05, \n\line 159.31 subdivision 1, is amended to read: \n\line 159.32 Subdivision 1. [APPOINTMENT OF TOWN AND CITY ASSESSORS.] \n\line 159.33 Notwithstanding any other provision of law all town assessors \n\line 159.34 shall be appointed by the town board, and notwithstanding any \n\line 159.35 charter provisions to the contrary, all city assessors shall be \n\line 159.36 appointed by the city council or other appointing authority as \n\line 160.1 provided by law or charter. {\strike Such assessors shall be residents} \n\line 160.2 {\strike of the state but need not be a resident of the town or city for} \n\line 160.3 {\strike which they are appointed.} They shall be selected and appointed \n\line 160.4 because of their knowledge and training in the field of property \n\line 160.5 taxation. All town and statutory city assessors shall be \n\line 160.6 appointed for indefinite terms. A town or statutory city \n\line 160.7 assessor who is an employee may be dismissed by the appointing \n\line 160.8 authority for cause. The term of the town or city assessors may \n\line 160.9 be terminated at any time by the town board or city council on \n\line 160.10 charges by the commissioner of revenue of inefficiency or \n\line 160.11 neglect of duty. Vacancies in the office of town or city \n\line 160.12 assessor shall be filled within 90 days by appointment of the \n\line 160.13 respective appointing authority indicated above. If the vacancy \n\line 160.14 is not filled within 90 days, the office shall be terminated. \n\line 160.15 When a vacancy in the office of town or city assessor is not \n\line 160.16 filled by appointment, and it is imperative that the office of \n\line 160.17 assessor be filled, the county auditor shall appoint some \n\line 160.18 resident of the county as assessor for such town or city. The \n\line 160.19 county auditor may appoint the county assessor as assessor for \n\line 160.20 such town or city, in which case the town or city shall pay to \n\line 160.21 the county treasurer the amount determined by the county auditor \n\line 160.22 to be due for the services performed and expenses incurred by \n\line 160.23 the county assessor in acting as assessor for such town or \n\line 160.24 city. The term of any town or statutory city assessor in a \n\line 160.25 county electing in accordance with section 273.052 shall be \n\line 160.26 terminated as provided in section 273.055. \n\line 160.27 The commissioner of revenue may recommend to the state \n\line 160.28 board of assessors the nonrenewal, suspension, or revocation of \n\line 160.29 an assessor's license as provided in sections 270.41 to 270.53. \n\line 160.30 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 160.31 {\ul following final enactment and applies to every town or city} \n\line 160.32 {\ul assessor whether that assessor was appointed before, on, or} \n\line 160.33 {\ul after the effective date.} \n\line 160.34 Sec. 12. Minnesota Statutes 2002, section 273.061, is \n\line 160.35 amended by adding a subdivision to read: \n\line 160.36 {\ul Subd. 1a.} [COMPATIBLE OFFICES.] {\ul A person appointed as the} \n\line 161.1 {\ul county assessor also may serve as the county auditor, county} \n\line 161.2 {\ul treasurer, or county auditor-treasurer if those offices are} \n\line 161.3 {\ul appointive, provided that the person in the combined appointed} \n\line 161.4 {\ul office must not serve on the county board of appeal and} \n\line 161.5 {\ul equalization under section 274.13. In a county in which the} \n\line 161.6 {\ul functions of the county assessor are combined with those of the} \n\line 161.7 {\ul county auditor or county auditor-treasurer, the county board may} \n\line 161.8 {\ul not delegate any authority, power, or responsibility under} \n\line 161.9 {\ul section 375.192, subdivision 4.} \n\line 161.10 Sec. 13. Minnesota Statutes 2002, section 273.061, is \n\line 161.11 amended by adding a subdivision to read: \n\line 161.12 {\ul Subd. 1b.} [COMPATIBLE OFFICES IN COUNTIES CHANGING TO \n\line 161.13 APPOINTED AUDITOR.] {\ul In a county in which the office of auditor,} \n\line 161.14 {\ul treasurer, or auditor-treasurer is an elective position, a} \n\line 161.15 {\ul person appointed as the county assessor also may serve as the} \n\line 161.16 {\ul county auditor, county treasurer, or county auditor-treasurer if} \n\line 161.17 {\ul a proposal to make the affected office appointive has been} \n\line 161.18 {\ul approved as required by other law and will be effective within} \n\line 161.19 {\ul five years.} \n\line 161.20 Sec. 14. Minnesota Statutes 2002, section 273.061, is \n\line 161.21 amended by adding a subdivision to read: \n\line 161.22 {\ul Subd. 1c.} [INCOMPATIBLE OFFICES.] {\ul The person appointed as} \n\line 161.23 {\ul the county assessor must not also be the county attorney, a} \n\line 161.24 {\ul county board member, an elected county auditor, an elected} \n\line 161.25 {\ul county treasurer, an elected county auditor-treasurer, a town} \n\line 161.26 {\ul board supervisor for a town in the same county, or a city mayor} \n\line 161.27 {\ul or council member for a city in the same county. The person} \n\line 161.28 {\ul appointed as the city assessor must not also be a city council} \n\line 161.29 {\ul member or mayor for the same city. A person appointed as the} \n\line 161.30 {\ul town assessor must not also be a town board supervisor for the} \n\line 161.31 {\ul same town. Except as provided in subdivision 1b, an assessor} \n\line 161.32 {\ul who accepts a position that is incompatible with the office of} \n\line 161.33 {\ul assessor is deemed to have resigned from the assessor position.} \n\line 161.34 Sec. 15. Minnesota Statutes 2002, section 273.11, \n\line 161.35 subdivision 1a, is amended to read: \n\line 161.36 Subd. 1a. [LIMITED MARKET VALUE.] In the case of all \n\line 162.1 property classified as agricultural homestead or nonhomestead, \n\line 162.2 residential homestead or nonhomestead, timber, or noncommercial \n\line 162.3 seasonal {\ul residential} recreational {\strike residential}, the assessor \n\line 162.4 shall compare the value with the taxable portion of the value \n\line 162.5 determined in the preceding assessment. \n\line 162.6 For assessment year 2002, the amount of the increase shall \n\line 162.7 not exceed the greater of (1) ten percent of the value in the \n\line 162.8 preceding assessment, or (2) 15 percent of the difference \n\line 162.9 between the current assessment and the preceding assessment. \n\line 162.10 For assessment year 2003, the amount of the increase shall \n\line 162.11 not exceed the greater of (1) 12 percent of the value in the \n\line 162.12 preceding assessment, or (2) 20 percent of the difference \n\line 162.13 between the current assessment and the preceding assessment. \n\line 162.14 For assessment year 2004, the amount of the increase shall \n\line 162.15 not exceed the greater of (1) 15 percent of the value in the \n\line 162.16 preceding assessment, or (2) 25 percent of the difference \n\line 162.17 between the current assessment and the preceding assessment. \n\line 162.18 For assessment year 2005, the amount of the increase shall \n\line 162.19 not exceed the greater of (1) 15 percent of the value in the \n\line 162.20 preceding assessment, or (2) 33 percent of the difference \n\line 162.21 between the current assessment and the preceding assessment. \n\line 162.22 For assessment year 2006, the amount of the increase shall \n\line 162.23 not exceed the greater of (1) 15 percent of the value in the \n\line 162.24 preceding assessment, or (2) 50 percent of the difference \n\line 162.25 between the current assessment and the preceding assessment. \n\line 162.26 This limitation shall not apply to increases in value due \n\line 162.27 to improvements. For purposes of this subdivision, the term \n\line 162.28 "assessment" means the value prior to any exclusion under \n\line 162.29 subdivision 16. \n\line 162.30 The provisions of this subdivision shall be in effect \n\line 162.31 through assessment year 2006 as provided in this subdivision. \n\line 162.32 For purposes of the assessment/sales ratio study conducted \n\line 162.33 under section 127A.48, and the computation of state aids paid \n\line 162.34 under chapters 122A, 123A, 123B, 124D, 125A, 126C, 127A, and \n\line 162.35 477A, market values and net tax capacities determined under this \n\line 162.36 subdivision and subdivision 16, shall be used. \n\line 163.1 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 163.2 {\ul following final enactment.} \n\line 163.3 Sec. 16. Minnesota Statutes 2002, section 273.124, \n\line 163.4 subdivision 1, is amended to read: \n\line 163.5 Subdivision 1. [GENERAL RULE.] (a) Residential real estate \n\line 163.6 that is occupied and used for the purposes of a homestead by its \n\line 163.7 owner, who must be a Minnesota resident, is a residential \n\line 163.8 homestead. \n\line 163.9 Agricultural land, as defined in section 273.13, \n\line 163.10 subdivision 23, that is occupied and used as a homestead by its \n\line 163.11 owner, who must be a Minnesota resident, is an agricultural \n\line 163.12 homestead. \n\line 163.13 Dates for establishment of a homestead and homestead \n\line 163.14 treatment provided to particular types of property are as \n\line 163.15 provided in this section. \n\line 163.16 Property held by a trustee under a trust is eligible for \n\line 163.17 homestead classification if the requirements under this chapter \n\line 163.18 are satisfied. \n\line 163.19 The assessor shall require proof, as provided in \n\line 163.20 subdivision 13, of the facts upon which classification as a \n\line 163.21 homestead may be determined. Notwithstanding any other law, the \n\line 163.22 assessor may at any time require a homestead application to be \n\line 163.23 filed in order to verify that any property classified as a \n\line 163.24 homestead continues to be eligible for homestead status. \n\line 163.25 Notwithstanding any other law to the contrary, the department of \n\line 163.26 revenue may, upon request from an assessor, verify whether an \n\line 163.27 individual who is requesting or receiving homestead \n\line 163.28 classification has filed a Minnesota income tax return as a \n\line 163.29 resident for the most recent taxable year for which the \n\line 163.30 information is available. \n\line 163.31 When there is a name change or a transfer of homestead \n\line 163.32 property, the assessor may reclassify the property in the next \n\line 163.33 assessment unless a homestead application is filed to verify \n\line 163.34 that the property continues to qualify for homestead \n\line 163.35 classification. \n\line 163.36 (b) For purposes of this section, homestead property shall \n\line 164.1 include property which is used for purposes of the homestead but \n\line 164.2 is separated from the homestead by a road, street, lot, \n\line 164.3 waterway, or other similar intervening property. The term "used \n\line 164.4 for purposes of the homestead" shall include but not be limited \n\line 164.5 to uses for gardens, garages, or other outbuildings commonly \n\line 164.6 associated with a homestead, but shall not include vacant land \n\line 164.7 held primarily for future development. In order to receive \n\line 164.8 homestead treatment for the noncontiguous property, the owner \n\line 164.9 must use the property for the purposes of the homestead, and \n\line 164.10 must apply to the assessor, both by the deadlines given in \n\line 164.11 subdivision 9. After initial qualification for the homestead \n\line 164.12 treatment, additional applications for subsequent years are not \n\line 164.13 required. \n\line 164.14 (c) Residential real estate that is occupied and used for \n\line 164.15 purposes of a homestead by a relative of the owner is a \n\line 164.16 homestead but only to the extent of the homestead treatment that \n\line 164.17 would be provided if the related owner occupied the property. \n\line 164.18 For purposes of this paragraph and paragraph (g), "relative" \n\line 164.19 means a parent, stepparent, child, stepchild, grandparent, \n\line 164.20 grandchild, brother, sister, uncle, aunt, nephew, or niece. \n\line 164.21 This relationship may be by blood or marriage. Property that \n\line 164.22 has been classified as seasonal {\ul residential} recreational \n\line 164.23 {\strike residential} property at any time during which it has been owned \n\line 164.24 by the current owner or spouse of the current owner will not be \n\line 164.25 reclassified as a homestead unless it is occupied as a homestead \n\line 164.26 by the owner; this prohibition also applies to property that, in \n\line 164.27 the absence of this paragraph, would have been classified as \n\line 164.28 seasonal {\ul residential} recreational {\strike residential} property at the \n\line 164.29 time when the residence was constructed. Neither the related \n\line 164.30 occupant nor the owner of the property may claim a property tax \n\line 164.31 refund under chapter 290A for a homestead occupied by a \n\line 164.32 relative. In the case of a residence located on agricultural \n\line 164.33 land, only the house, garage, and immediately surrounding one \n\line 164.34 acre of land shall be classified as a homestead under this \n\line 164.35 paragraph, except as provided in paragraph (d). \n\line 164.36 (d) Agricultural property that is occupied and used for \n\line 165.1 purposes of a homestead by a relative of the owner, is a \n\line 165.2 homestead, only to the extent of the homestead treatment that \n\line 165.3 would be provided if the related owner occupied the property, \n\line 165.4 and only if all of the following criteria are met: \n\line 165.5 (1) the relative who is occupying the agricultural property \n\line 165.6 is a son, daughter, grandson, granddaughter, father, or mother \n\line 165.7 of the owner of the agricultural property or a son, daughter, \n\line 165.8 grandson, or granddaughter of the spouse of the owner of the \n\line 165.9 agricultural property; \n\line 165.10 (2) the owner of the agricultural property must be a \n\line 165.11 Minnesota resident; \n\line 165.12 (3) the owner of the agricultural property must not receive \n\line 165.13 homestead treatment on any other agricultural property in \n\line 165.14 Minnesota; and \n\line 165.15 (4) the owner of the agricultural property is limited to \n\line 165.16 only one agricultural homestead per family under this paragraph. \n\line 165.17 Neither the related occupant nor the owner of the property \n\line 165.18 may claim a property tax refund under chapter 290A for a \n\line 165.19 homestead occupied by a relative qualifying under this \n\line 165.20 paragraph. For purposes of this paragraph, "agricultural \n\line 165.21 property" means the house, garage, other farm buildings and \n\line 165.22 structures, and agricultural land. \n\line 165.23 Application must be made to the assessor by the owner of \n\line 165.24 the agricultural property to receive homestead benefits under \n\line 165.25 this paragraph. The assessor may require the necessary proof \n\line 165.26 that the requirements under this paragraph have been met. \n\line 165.27 (e) In the case of property owned by a property owner who \n\line 165.28 is married, the assessor must not deny homestead treatment in \n\line 165.29 whole or in part if only one of the spouses occupies the \n\line 165.30 property and the other spouse is absent due to: (1) marriage \n\line 165.31 dissolution proceedings, (2) legal separation, (3) employment or \n\line 165.32 self-employment in another location, or (4) other personal \n\line 165.33 circumstances causing the spouses to live separately, not \n\line 165.34 including an intent to obtain two homestead classifications for \n\line 165.35 property tax purposes. To qualify under clause (3), the \n\line 165.36 spouse's place of employment or self-employment must be at least \n\line 166.1 50 miles distant from the other spouse's place of employment, \n\line 166.2 and the homesteads must be at least 50 miles distant from each \n\line 166.3 other. Homestead treatment, in whole or in part, shall not be \n\line 166.4 denied to the owner's spouse who previously occupied the \n\line 166.5 residence with the owner if the absence of the owner is due to \n\line 166.6 one of the exceptions provided in this paragraph. \n\line 166.7 (f) The assessor must not deny homestead treatment in whole \n\line 166.8 or in part if: \n\line 166.9 (1) in the case of a property owner who is not married, the \n\line 166.10 owner is absent due to residence in a nursing home, boarding \n\line 166.11 care facility, or an elderly assisted living facility property \n\line 166.12 as defined in section 273.13, subdivision 25a, and the property \n\line 166.13 is not otherwise occupied; or \n\line 166.14 (2) in the case of a property owner who is married, the \n\line 166.15 owner or the owner's spouse or both are absent due to residence \n\line 166.16 in a nursing home, boarding care facility, or an elderly \n\line 166.17 assisted living facility property as defined in section 273.13, \n\line 166.18 subdivision 25a, and the property is not occupied or is occupied \n\line 166.19 only by the owner's spouse. \n\line 166.20 (g) If an individual is purchasing property with the intent \n\line 166.21 of claiming it as a homestead and is required by the terms of \n\line 166.22 the financing agreement to have a relative shown on the deed as \n\line 166.23 a coowner, the assessor shall allow a full homestead \n\line 166.24 classification. This provision only applies to first-time \n\line 166.25 purchasers, whether married or single, or to a person who had \n\line 166.26 previously been married and is purchasing as a single individual \n\line 166.27 for the first time. The application for homestead benefits must \n\line 166.28 be on a form prescribed by the commissioner and must contain the \n\line 166.29 data necessary for the assessor to determine if full homestead \n\line 166.30 benefits are warranted. \n\line 166.31 (h) If residential or agricultural real estate is occupied \n\line 166.32 and used for purposes of a homestead by a child of a deceased \n\line 166.33 owner and the property is subject to jurisdiction of probate \n\line 166.34 court, the child shall receive relative homestead classification \n\line 166.35 under paragraph (c) or (d) to the same extent they would be \n\line 166.36 entitled to it if the owner was still living, until the probate \n\line 167.1 is completed. For purposes of this paragraph, "child" includes \n\line 167.2 a relationship by blood or by marriage. \n\line 167.3 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 167.4 {\ul following final enactment.} \n\line 167.5 Sec. 17. Minnesota Statutes 2002, section 273.13, \n\line 167.6 subdivision 25, is amended to read: \n\line 167.7 Subd. 25. [CLASS 4.] (a) Class 4a is residential real \n\line 167.8 estate containing four or more units and used or held for use by \n\line 167.9 the owner or by the tenants or lessees of the owner as a \n\line 167.10 residence for rental periods of 30 days or more. Class 4a also \n\line 167.11 includes hospitals licensed under sections 144.50 to 144.56, \n\line 167.12 other than hospitals exempt under section 272.02, and contiguous \n\line 167.13 property used for hospital purposes, without regard to whether \n\line 167.14 the property has been platted or subdivided. The market value \n\line 167.15 of class 4a property has a class rate of 1.8 percent for taxes \n\line 167.16 payable in 2002, 1.5 percent for taxes payable in 2003, and 1.25 \n\line 167.17 percent for taxes payable in 2004 and thereafter, except that \n\line 167.18 class 4a property consisting of a structure for which \n\line 167.19 construction commenced after June 30, 2001, has a class rate of \n\line 167.20 1.25 percent of market value for taxes payable in 2003 and \n\line 167.21 subsequent years. \n\line 167.22 (b) Class 4b includes: \n\line 167.23 (1) residential real estate containing less than four units \n\line 167.24 that does not qualify as class 4bb, other than seasonal \n\line 167.25 residential{\strike , and} recreational {\ul property}; \n\line 167.26 (2) manufactured homes not classified under any other \n\line 167.27 provision; \n\line 167.28 (3) a dwelling, garage, and surrounding one acre of \n\line 167.29 property on a nonhomestead farm classified under subdivision 23, \n\line 167.30 paragraph (b) containing two or three units; {\ul and} \n\line 167.31 (4) unimproved property that is classified residential as \n\line 167.32 determined under subdivision 33. \n\line 167.33 The market value of class 4b property has a class rate of \n\line 167.34 1.5 percent for taxes payable in 2002, and 1.25 percent for \n\line 167.35 taxes payable in 2003 and thereafter. \n\line 167.36 (c) Class 4bb includes: \n\line 168.1 (1) nonhomestead residential real estate containing one \n\line 168.2 unit, other than seasonal residential{\strike , and} recreational \n\line 168.3 {\ul property}; and \n\line 168.4 (2) a single family dwelling, garage, and surrounding one \n\line 168.5 acre of property on a nonhomestead farm classified under \n\line 168.6 subdivision 23, paragraph (b). \n\line 168.7 Class 4bb property has the same class rates as class 1a \n\line 168.8 property under subdivision 22. \n\line 168.9 Property that has been classified as seasonal {\strike recreational} \n\line 168.10 residential {\ul recreational} property at any time during which it \n\line 168.11 has been owned by the current owner or spouse of the current \n\line 168.12 owner does not qualify for class 4bb. \n\line 168.13 (d) Class 4c property includes: \n\line 168.14 (1) except as provided in subdivision 22, paragraph (c), \n\line 168.15 real property devoted to temporary and seasonal residential \n\line 168.16 occupancy for recreation purposes, including real property \n\line 168.17 devoted to temporary and seasonal residential occupancy for \n\line 168.18 recreation purposes and not devoted to commercial purposes for \n\line 168.19 more than 250 days in the year preceding the year of \n\line 168.20 assessment. For purposes of this clause, property is devoted to \n\line 168.21 a commercial purpose on a specific day if any portion of the \n\line 168.22 property is used for residential occupancy, and a fee is charged \n\line 168.23 for residential occupancy. In order for a property to be \n\line 168.24 classified as class 4c, seasonal {\ul residential} recreational \n\line 168.25 {\strike residential} for commercial purposes, at least 40 percent of the \n\line 168.26 annual gross lodging receipts related to the property must be \n\line 168.27 from business conducted during 90 consecutive days and either \n\line 168.28 (i) at least 60 percent of all paid bookings by lodging guests \n\line 168.29 during the year must be for periods of at least two consecutive \n\line 168.30 nights; or (ii) at least 20 percent of the annual gross receipts \n\line 168.31 must be from charges for rental of fish houses, boats and \n\line 168.32 motors, snowmobiles, downhill or cross-country ski equipment, or \n\line 168.33 charges for marina services, launch services, and guide \n\line 168.34 services, or the sale of bait and fishing tackle. For purposes \n\line 168.35 of this determination, a paid booking of five or more nights \n\line 168.36 shall be counted as two bookings. Class 4c also includes \n\line 169.1 commercial use real property used exclusively for recreational \n\line 169.2 purposes in conjunction with class 4c property devoted to \n\line 169.3 temporary and seasonal residential occupancy for recreational \n\line 169.4 purposes, up to a total of two acres, provided the property is \n\line 169.5 not devoted to commercial recreational use for more than 250 \n\line 169.6 days in the year preceding the year of assessment and is located \n\line 169.7 within two miles of the class 4c property with which it is \n\line 169.8 used. Class 4c property classified in this clause also includes \n\line 169.9 the remainder of class 1c resorts provided that the entire \n\line 169.10 property including that portion of the property classified as \n\line 169.11 class 1c also meets the requirements for class 4c under this \n\line 169.12 clause; otherwise the entire property is classified as class 3. \n\line 169.13 Owners of real property devoted to temporary and seasonal \n\line 169.14 residential occupancy for recreation purposes and all or a \n\line 169.15 portion of which was devoted to commercial purposes for not more \n\line 169.16 than 250 days in the year preceding the year of assessment \n\line 169.17 desiring classification as class 1c or 4c, must submit a \n\line 169.18 declaration to the assessor designating the cabins or units \n\line 169.19 occupied for 250 days or less in the year preceding the year of \n\line 169.20 assessment by January 15 of the assessment year. Those cabins \n\line 169.21 or units and a proportionate share of the land on which they are \n\line 169.22 located will be designated class 1c or 4c as otherwise \n\line 169.23 provided. The remainder of the cabins or units and a \n\line 169.24 proportionate share of the land on which they are located will \n\line 169.25 be designated as class 3a. The owner of property desiring \n\line 169.26 designation as class 1c or 4c property must provide guest \n\line 169.27 registers or other records demonstrating that the units for \n\line 169.28 which class 1c or 4c designation is sought were not occupied for \n\line 169.29 more than 250 days in the year preceding the assessment if so \n\line 169.30 requested. The portion of a property operated as a (1) \n\line 169.31 restaurant, (2) bar, (3) gift shop, and (4) other nonresidential \n\line 169.32 facility operated on a commercial basis not directly related to \n\line 169.33 temporary and seasonal residential occupancy for recreation \n\line 169.34 purposes shall not qualify for class 1c or 4c; \n\line 169.35 (2) qualified property used as a golf course if: \n\line 169.36 (i) it is open to the public on a daily fee basis. It may \n\line 170.1 charge membership fees or dues, but a membership fee may not be \n\line 170.2 required in order to use the property for golfing, and its green \n\line 170.3 fees for golfing must be comparable to green fees typically \n\line 170.4 charged by municipal courses; and \n\line 170.5 (ii) it meets the requirements of section 273.112, \n\line 170.6 subdivision 3, paragraph (d). \n\line 170.7 A structure used as a clubhouse, restaurant, or place of \n\line 170.8 refreshment in conjunction with the golf course is classified as \n\line 170.9 class 3a property; \n\line 170.10 (3) real property up to a maximum of one acre of land owned \n\line 170.11 by a nonprofit community service oriented organization; provided \n\line 170.12 that the property is not used for a revenue-producing activity \n\line 170.13 for more than six days in the calendar year preceding the year \n\line 170.14 of assessment and the property is not used for residential \n\line 170.15 purposes on either a temporary or permanent basis. For purposes \n\line 170.16 of this clause, a "nonprofit community service oriented \n\line 170.17 organization" means any corporation, society, association, \n\line 170.18 foundation, or institution organized and operated exclusively \n\line 170.19 for charitable, religious, fraternal, civic, or educational \n\line 170.20 purposes, and which is exempt from federal income taxation \n\line 170.21 pursuant to section 501(c)(3), (10), or (19) of the Internal \n\line 170.22 Revenue Code of 1986, as amended through December 31, 1990. For \n\line 170.23 purposes of this clause, "revenue-producing activities" shall \n\line 170.24 include but not be limited to property or that portion of the \n\line 170.25 property that is used as an on-sale intoxicating liquor or 3.2 \n\line 170.26 percent malt liquor establishment licensed under chapter 340A, a \n\line 170.27 restaurant open to the public, bowling alley, a retail store, \n\line 170.28 gambling conducted by organizations licensed under chapter 349, \n\line 170.29 an insurance business, or office or other space leased or rented \n\line 170.30 to a lessee who conducts a for-profit enterprise on the \n\line 170.31 premises. Any portion of the property which is used for \n\line 170.32 revenue-producing activities for more than six days in the \n\line 170.33 calendar year preceding the year of assessment shall be assessed \n\line 170.34 as class 3a. The use of the property for social events open \n\line 170.35 exclusively to members and their guests for periods of less than \n\line 170.36 24 hours, when an admission is not charged nor any revenues are \n\line 171.1 received by the organization shall not be considered a \n\line 171.2 revenue-producing activity; \n\line 171.3 (4) post-secondary student housing of not more than one \n\line 171.4 acre of land that is owned by a nonprofit corporation organized \n\line 171.5 under chapter 317A and is used exclusively by a student \n\line 171.6 cooperative, sorority, or fraternity for on-campus housing or \n\line 171.7 housing located within two miles of the border of a college \n\line 171.8 campus; \n\line 171.9 (5) manufactured home parks as defined in section 327.14, \n\line 171.10 subdivision 3; \n\line 171.11 (6) real property that is actively and exclusively devoted \n\line 171.12 to indoor fitness, health, social, recreational, and related \n\line 171.13 uses, is owned and operated by a not-for-profit corporation, and \n\line 171.14 is located within the metropolitan area as defined in section \n\line 171.15 473.121, subdivision 2; \n\line 171.16 (7) a leased or privately owned noncommercial aircraft \n\line 171.17 storage hangar not exempt under section 272.01, subdivision 2, \n\line 171.18 and the land on which it is located, provided that: \n\line 171.19 (i) the land is on an airport owned or operated by a city, \n\line 171.20 town, county, metropolitan airports commission, or group \n\line 171.21 thereof; and \n\line 171.22 (ii) the land lease, or any ordinance or signed agreement \n\line 171.23 restricting the use of the leased premise, prohibits commercial \n\line 171.24 activity performed at the hangar. \n\line 171.25 If a hangar classified under this clause is sold after June \n\line 171.26 30, 2000, a bill of sale must be filed by the new owner with the \n\line 171.27 assessor of the county where the property is located within 60 \n\line 171.28 days of the sale; and \n\line 171.29 (8) residential real estate, a portion of which is used by \n\line 171.30 the owner for homestead purposes, and that is also a place of \n\line 171.31 lodging, if all of the following criteria are met: \n\line 171.32 (i) rooms are provided for rent to transient guests that \n\line 171.33 generally stay for periods of 14 or fewer days; \n\line 171.34 (ii) meals are provided to persons who rent rooms, the cost \n\line 171.35 of which is incorporated in the basic room rate; \n\line 171.36 (iii) meals are not provided to the general public except \n\line 172.1 for special events on fewer than seven days in the calendar year \n\line 172.2 preceding the year of the assessment; and \n\line 172.3 (iv) the owner is the operator of the property. \n\line 172.4 The market value subject to the 4c classification under this \n\line 172.5 clause is limited to five rental units. Any rental units on the \n\line 172.6 property in excess of five, must be valued and assessed as class \n\line 172.7 3a. The portion of the property used for purposes of a \n\line 172.8 homestead by the owner must be classified as class 1a property \n\line 172.9 under subdivision 22. \n\line 172.10 Class 4c property has a class rate of 1.5 percent of market \n\line 172.11 value, except that (i) each parcel of seasonal residential \n\line 172.12 recreational property not used for commercial purposes has the \n\line 172.13 same class rates as class 4bb property, (ii) manufactured home \n\line 172.14 parks assessed under clause (5) have the same class rate as \n\line 172.15 class 4b property, (iii) commercial-use seasonal residential \n\line 172.16 recreational property has a class rate of one percent for the \n\line 172.17 first $500,000 of market value, which includes any market value \n\line 172.18 receiving the one percent rate under subdivision 22, and 1.25 \n\line 172.19 percent for the remaining market value, (iv) the market value of \n\line 172.20 property described in clause (4) has a class rate of one \n\line 172.21 percent, (v) the market value of property described in clauses \n\line 172.22 (2) and (6) has a class rate of 1.25 percent, and (vi) that \n\line 172.23 portion of the market value of property in clause (8) qualifying \n\line 172.24 for class 4c property has a class rate of 1.25 percent. \n\line 172.25 (e) Class 4d property is qualifying low-income rental \n\line 172.26 housing certified to the assessor by the housing finance agency \n\line 172.27 under sections 273.126 and 462A.071. Class 4d includes land in \n\line 172.28 proportion to the total market value of the building that is \n\line 172.29 qualifying low-income rental housing. For all properties \n\line 172.30 qualifying as class 4d, the market value determined by the \n\line 172.31 assessor must be based on the normal approach to value using \n\line 172.32 normal unrestricted rents. \n\line 172.33 Class 4d property has a class rate of 0.9 percent for taxes \n\line 172.34 payable in 2002, and one percent for taxes payable in 2003 and \n\line 172.35 1.25 percent for taxes payable in 2004 and thereafter. \n\line 172.36 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 173.1 {\ul following final enactment.} \n\line 173.2 Sec. 18. Minnesota Statutes 2002, section 273.1398, \n\line 173.3 subdivision 4b, is amended to read: \n\line 173.4 Subd. 4b. [COURT EXPENDITURES; MAINTENANCE OF EFFORT.] (a) \n\line 173.5 Until the costs of court administration as defined under section \n\line 173.6 480.183, subdivision 3, in a county have been transferred to the \n\line 173.7 state, each county in a judicial district transferring court \n\line 173.8 administration costs to state funding after July 1, 2001, shall \n\line 173.9 budget for the funding of these costs an amount at least equal \n\line 173.10 to the certified budget amount for calendar year 2001, increased \n\line 173.11 by six percent for each year from 2001 to 2003 and by eight \n\line 173.12 percent from 2004 to the year of the transfer. The county shall \n\line 173.13 budget, fund, and authorize expenditures not less than the \n\line 173.14 amount calculated under this paragraph {\strike plus the temporary aid} \n\line 173.15 {\strike amount under subdivision 4c for maintenance of effort of} \n\line 173.16 {\strike administrative costs}. \n\line 173.17 (b) By July 15, 2001, the court shall certify to each \n\line 173.18 county in the judicial district its cost of court administration \n\line 173.19 as defined under section 480.183, subdivision 3, based on 2001 \n\line 173.20 budgets. In making that determination, the court shall exclude \n\line 173.21 the budget costs of the county for the following categories: \n\line 173.22 (1) rent; \n\line 173.23 (2) examiner of titles; \n\line 173.24 (3) civil court appointed attorneys for civil matters; \n\line 173.25 (4) hospitalization costs; and \n\line 173.26 (5) cost of maintaining vital statistics. \n\line 173.27 The amount of funding provided by a county for courts that \n\line 173.28 is increased by the maintenance of effort requirement may not be \n\line 173.29 used by a county to pay the costs described in clauses (1) to \n\line 173.30 (5). \n\line 173.31 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 173.32 {\ul following final enactment.} \n\line 173.33 Sec. 19. Minnesota Statutes 2002, section 273.1398, \n\line 173.34 subdivision 4d, is amended to read: \n\line 173.35 Subd. 4d. [AID OFFSET FOR OUT-OF-HOME PLACEMENT COSTS.] \n\line 173.36 For aid payable in 2004, each county's aid under subdivision 2 \n\line 174.1 shall be permanently reduced by an amount equal to the county's \n\line 174.2 2004 reimbursement for nonfederal expenditures for out-of-home \n\line 174.3 placements, as provided in section 245.775, provided that \n\line 174.4 payments will be made under section 477A.0123 in calendar year \n\line 174.5 2004. The counties shall provide all information requested by \n\line 174.6 the commissioner of human services necessary to allow the \n\line 174.7 commissioner to certify the previous three years' average \n\line 174.8 nonfederal costs to the commissioner of revenue by July {\strike 15, 2004} \n\line 174.9 {\ul 1, 2003}. The aid reduction under this subdivision must not \n\line 174.10 exceed the difference between (1) the amount of aid calculated \n\line 174.11 for the county for calendar year 2004 under subdivision 2, \n\line 174.12 including any addition under section 477A.07, and (2) the amount \n\line 174.13 of any aid reductions for the state takeover of courts contained \n\line 174.14 in Laws 2001, First Special Session chapter 5, article 5. \n\line 174.15 [EFFECTIVE DATE.] {\ul This section is effective for aids} \n\line 174.16 {\ul payable in 2004 and thereafter.} \n\line 174.17 Sec. 20. Minnesota Statutes 2002, section 273.372, is \n\line 174.18 amended to read: \n\line 174.19 273.372 [PROCEEDINGS AND APPEALS; UTILITY {\ul OR RAILROAD} \n\line 174.20 VALUATIONS.] \n\line 174.21 An appeal by a utility {\ul or railroad} company concerning the \n\line 174.22 exemption, valuation, or classification {\strike on} {\ul of} property for which \n\line 174.23 the commissioner of revenue has provided the {\ul city or} county \n\line 174.24 {\ul assessor} with {\strike commissioner's orders} {\ul valuations by order,} or {\ul for} \n\line 174.25 {\ul which the commissioner has} recommended values {\ul to the city or} \n\line 174.26 {\ul county assessor,} must be brought against the commissioner in tax \n\line 174.27 court or in district court of the county where the property is \n\line 174.28 located, and not against the county or taxing district where the \n\line 174.29 property is located. If the appeal to {\strike a} court is {\strike of} {\ul from} an \n\line 174.30 order of the commissioner, it must be brought under chapter \n\line 174.31 271. If the appeal is {\ul from the exemption, valuation,} \n\line 174.32 {\ul classification, or tax that results from implementation of the} \n\line 174.33 {\ul commissioner's order or recommendation, it must be} brought under \n\line 174.34 chapter 278, {\ul and} the {\strike procedures} {\ul provisions} in that chapter \n\line 174.35 apply{\ul , except that service shall be on the commissioner only and} \n\line 174.36 {\ul not on the county officials specified in section 278.01,} \n\line 175.1 {\ul subdivision 1}. This provision applies to the property {\strike contained} \n\line 175.2 {\strike under} {\ul described in} sections 273.33, 273.35, 273.36, and 273.37, \n\line 175.3 but only if the appealed values have remained unchanged from \n\line 175.4 those provided to the {\ul city or} county by the commissioner. If \n\line 175.5 the exemption, valuation, or classification being appealed has \n\line 175.6 been changed by the {\ul city or} county, then the action must be \n\line 175.7 brought under chapter 278 in the county where the property is \n\line 175.8 located {\ul and proper service must be made upon the county} \n\line 175.9 {\ul officials as specified in section 278.01, subdivision 1}. \n\line 175.10 Upon filing of any appeal by a utility company {\ul or railroad} \n\line 175.11 against the commissioner, the commissioner shall give notice by \n\line 175.12 first class mail to each county which would be affected by the \n\line 175.13 appeal. \n\line 175.14 Companies that submit the reports under section {\ul 270.82 or} \n\line 175.15 273.371 by the date specified in that section, or by the date \n\line 175.16 specified by the commissioner in an extension, may appeal \n\line 175.17 administratively to the commissioner under the procedures in \n\line 175.18 section 270.11, subdivision 6, prior to bringing an action in \n\line 175.19 tax court or in district court, however, instituting an \n\line 175.20 administrative appeal with the commissioner does not change or \n\line 175.21 modify the deadline in section {\ul 271.06 for appealing an order of} \n\line 175.22 {\ul the commissioner in tax court or the deadline in section} 278.01 \n\line 175.23 for {\strike bringing an action} {\ul filing a property tax claim or objection} \n\line 175.24 in tax court or district court. \n\line 175.25 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 175.26 {\ul following final enactment.} \n\line 175.27 Sec. 21. Minnesota Statutes 2002, section 273.42, \n\line 175.28 subdivision 2, is amended to read: \n\line 175.29 Subd. 2. Owners of land that is an agricultural or \n\line 175.30 nonagricultural homestead, nonhomestead agricultural land, \n\line 175.31 rental residential property, and both commercial and \n\line 175.32 noncommercial seasonal residential recreational property, as \n\line 175.33 those terms are defined in section 273.13 listed on records of \n\line 175.34 the county auditor or county treasurer over which runs a high \n\line 175.35 voltage transmission line {\strike as defined in section 116C.52,} \n\line 175.36 {\strike subdivision 3} {\ul with a capacity of 200 kilovolts or more}, except a \n\line 176.1 high voltage transmission line the construction of which was \n\line 176.2 commenced prior to July 1, 1974, shall receive a property tax \n\line 176.3 credit in an amount determined by multiplying a fraction, the \n\line 176.4 numerator of which is the length of high voltage transmission \n\line 176.5 line which runs over that parcel and the denominator of which is \n\line 176.6 the total length of that particular line running over all \n\line 176.7 property within the city or township by ten percent of the \n\line 176.8 transmission line tax revenue derived from the tax on that \n\line 176.9 portion of the line within the city or township pursuant to \n\line 176.10 section 273.36. In the case of property owners in unorganized \n\line 176.11 townships, the property tax credit shall be determined by \n\line 176.12 multiplying a fraction, the numerator of which is the length of \n\line 176.13 the qualifying high voltage transmission line which runs over \n\line 176.14 the parcel and the denominator of which is the total length of \n\line 176.15 the qualifying high voltage transmission line running over all \n\line 176.16 property within all the unorganized townships within the county, \n\line 176.17 by the total utility property tax credit fund amount available \n\line 176.18 within the county for that year pursuant to subdivision 1. \n\line 176.19 Where a right-of-way width is shared by more than one property \n\line 176.20 owner, the numerator shall be adjusted by multiplying the length \n\line 176.21 of line on the parcel by the proportion of the total width on \n\line 176.22 the parcel owned by that property owner. The amount of credit \n\line 176.23 for which the property qualifies shall not exceed 20 percent of \n\line 176.24 the total gross tax on the parcel prior to deduction of the \n\line 176.25 state paid agricultural credit and the state paid homestead \n\line 176.26 credit, provided that, if the property containing the \n\line 176.27 right-of-way is included in a parcel which exceeds 40 acres, the \n\line 176.28 total gross tax on the parcel shall be multiplied by a fraction, \n\line 176.29 the numerator of which is the sum of the number of acres in each \n\line 176.30 quarter-quarter section or portion thereof which contains a \n\line 176.31 right-of-way and the denominator of which is the total number of \n\line 176.32 acres in the parcel set forth on the tax statement, and the \n\line 176.33 maximum credit shall be 20 percent of the product of that \n\line 176.34 computation, prior to deduction of those credits. The auditor \n\line 176.35 of the county in which the affected parcel is located shall \n\line 176.36 calculate the amount of the credit due for each parcel and \n\line 177.1 transmit that information to the county treasurer. The county \n\line 177.2 auditor, in computing the credit received pursuant to section \n\line 177.3 273.135, shall reduce the gross tax by the amount of the credit \n\line 177.4 received pursuant to this section, unless the amount of the \n\line 177.5 credit would be less than $10. \n\line 177.6 If, after the county auditor has computed the credit to \n\line 177.7 those qualifying property owners in unorganized townships, there \n\line 177.8 is money remaining in the utility property tax credit fund, then \n\line 177.9 that excess amount in the fund shall be returned to the general \n\line 177.10 school fund of the county. \n\line 177.11 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 177.12 {\ul following final enactment.} \n\line 177.13 Sec. 22. Minnesota Statutes 2002, section 274.01, \n\line 177.14 subdivision 1, is amended to read: \n\line 177.15 Subdivision 1. [ORDINARY BOARD; MEETINGS, DEADLINES, \n\line 177.16 GRIEVANCES.] (a) The town board of a town, or the council or \n\line 177.17 other governing body of a city, is the board of appeal and \n\line 177.18 equalization except (1) in cities whose charters provide for a \n\line 177.19 board of equalization or (2) in any city or town that has \n\line 177.20 transferred its local board of review power and duties to the \n\line 177.21 county board as provided in subdivision 3. The county assessor \n\line 177.22 shall fix a day and time when the board or the board of \n\line 177.23 equalization shall meet in the assessment districts of the \n\line 177.24 county. Notwithstanding any law or city charter to the \n\line 177.25 contrary, a city board of equalization shall be referred to as a \n\line 177.26 board of appeal and equalization. On or before February 15 of \n\line 177.27 each year the assessor shall give written notice of the time to \n\line 177.28 the city or town clerk. Notwithstanding the provisions of any \n\line 177.29 charter to the contrary, the meetings must be held between April \n\line 177.30 1 and May 31 each year. The clerk shall give published and \n\line 177.31 posted notice of the meeting at least ten days before the date \n\line 177.32 of the meeting. \n\line 177.33 The board shall meet at the office of the clerk to review \n\line 177.34 the assessment and classification of property in the town or \n\line 177.35 city. No changes in valuation or classification which are \n\line 177.36 intended to correct errors in judgment by the county assessor \n\line 178.1 may be made by the county assessor after the board has adjourned \n\line 178.2 in those cities or towns that hold a local board of review; \n\line 178.3 however, corrections of errors that are merely clerical in \n\line 178.4 nature or changes that extend homestead treatment to property \n\line 178.5 are permitted after adjournment until the tax extension date for \n\line 178.6 that assessment year. The changes must be fully documented and \n\line 178.7 maintained in the assessor's office and must be available for \n\line 178.8 review by any person. A copy of the changes made during this \n\line 178.9 period in those cities or towns that hold a local board of \n\line 178.10 review must be sent to the county board no later than December \n\line 178.11 31 of the assessment year. \n\line 178.12 (b) The board shall determine whether the taxable property \n\line 178.13 in the town or city has been properly placed on the list and \n\line 178.14 properly valued by the assessor. If real or personal property \n\line 178.15 has been omitted, the board shall place it on the list with its \n\line 178.16 market value, and correct the assessment so that each tract or \n\line 178.17 lot of real property, and each article, parcel, or class of \n\line 178.18 personal property, is entered on the assessment list at its \n\line 178.19 market value. No assessment of the property of any person may \n\line 178.20 be raised unless the person has been duly notified of the intent \n\line 178.21 of the board to do so. On application of any person feeling \n\line 178.22 aggrieved, the board shall review the assessment or \n\line 178.23 classification, or both, and correct it as appears just. The \n\line 178.24 board may not make an individual market value adjustment or \n\line 178.25 classification change that would benefit the property in cases \n\line 178.26 where the owner or other person having control over the property \n\line 178.27 will not permit the assessor to inspect the property and the \n\line 178.28 interior of any buildings or structures. \n\line 178.29 (c) A local board may reduce assessments upon petition of \n\line 178.30 the taxpayer but the total reductions must not reduce the \n\line 178.31 aggregate assessment made by the county assessor by more than \n\line 178.32 one percent. If the total reductions would lower the aggregate \n\line 178.33 assessments made by the county assessor by more than one \n\line 178.34 percent, none of the adjustments may be made. The assessor \n\line 178.35 shall correct any clerical errors or double assessments \n\line 178.36 discovered by the board without regard to the one percent \n\line 179.1 limitation. \n\line 179.2 (d) {\ul A local board does not have authority to grant an} \n\line 179.3 {\ul exemption or to order property removed from the tax rolls.} \n\line 179.4 {\ul (e)} A majority of the members may act at the meeting, and \n\line 179.5 adjourn from day to day until they finish hearing the cases \n\line 179.6 presented. The assessor shall attend, with the assessment books \n\line 179.7 and papers, and take part in the proceedings, but must not \n\line 179.8 vote. The county assessor, or an assistant delegated by the \n\line 179.9 county assessor shall attend the meetings. The board shall list \n\line 179.10 separately, on a form appended to the assessment book, all \n\line 179.11 omitted property added to the list by the board and all items of \n\line 179.12 property increased or decreased, with the market value of each \n\line 179.13 item of property, added or changed by the board, placed opposite \n\line 179.14 the item. The county assessor shall enter all changes made by \n\line 179.15 the board in the assessment book. \n\line 179.16 {\strike (e)} {\ul (f)} Except as provided in subdivision 3, if a person \n\line 179.17 fails to appear in person, by counsel, or by written \n\line 179.18 communication before the board after being duly notified of the \n\line 179.19 board's intent to raise the assessment of the property, or if a \n\line 179.20 person feeling aggrieved by an assessment or classification \n\line 179.21 fails to apply for a review of the assessment or classification, \n\line 179.22 the person may not appear before the county board of appeal and \n\line 179.23 equalization for a review of the assessment or classification. \n\line 179.24 This paragraph does not apply if an assessment was made after \n\line 179.25 the local board meeting, as provided in section 273.01, or if \n\line 179.26 the person can establish not having received notice of market \n\line 179.27 value at least five days before the local board meeting. \n\line 179.28 {\strike (f)} {\ul (g)} The local board must complete its work and adjourn \n\line 179.29 within 20 days from the time of convening stated in the notice \n\line 179.30 of the clerk, unless a longer period is approved by the \n\line 179.31 commissioner of revenue. No action taken after that date is \n\line 179.32 valid. All complaints about an assessment or classification \n\line 179.33 made after the meeting of the board must be heard and determined \n\line 179.34 by the county board of equalization. A nonresident may, at any \n\line 179.35 time, before the meeting of the board file written objections to \n\line 179.36 an assessment or classification with the county assessor. The \n\line 180.1 objections must be presented to the board at its meeting by the \n\line 180.2 county assessor for its consideration. \n\line 180.3 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 180.4 {\ul following final enactment.} \n\line 180.5 Sec. 23. Minnesota Statutes 2002, section 274.13, \n\line 180.6 subdivision 1, is amended to read: \n\line 180.7 Subdivision 1. [MEMBERS; MEETINGS; RULES FOR EQUALIZING \n\line 180.8 ASSESSMENTS.] The county commissioners, or a majority of them, \n\line 180.9 with the county auditor, or, if the auditor cannot be present, \n\line 180.10 the deputy county auditor, or, if there is no deputy, the court \n\line 180.11 administrator of the district court, shall form a board for the \n\line 180.12 equalization of the assessment of the property of the county, \n\line 180.13 including the property of all cities whose charters provide for \n\line 180.14 a board of equalization. This board shall be referred to as the \n\line 180.15 county board of appeal and equalization. The board shall meet \n\line 180.16 annually, on the date specified in section 274.14, at the office \n\line 180.17 of the auditor. Each member shall take an oath to fairly and \n\line 180.18 impartially perform duties as a member. The board shall examine \n\line 180.19 and compare the returns of the assessment of property of the \n\line 180.20 towns or districts, and equalize them so that each tract or lot \n\line 180.21 of real property and each article or class of personal property \n\line 180.22 is entered on the assessment list at its market value, subject \n\line 180.23 to the following rules: \n\line 180.24 (1) The board shall raise the valuation of each tract or \n\line 180.25 lot of real property which in its opinion is returned below its \n\line 180.26 market value to the sum believed to be its market value. The \n\line 180.27 board must first give notice of intention to raise the valuation \n\line 180.28 to the person in whose name it is assessed, if the person is a \n\line 180.29 resident of the county. The notice must fix a time and place \n\line 180.30 for a hearing. \n\line 180.31 (2) The board shall reduce the valuation of each tract or \n\line 180.32 lot which in its opinion is returned above its market value to \n\line 180.33 the sum believed to be its market value. \n\line 180.34 (3) The board shall raise the valuation of each class of \n\line 180.35 personal property which in its opinion is returned below its \n\line 180.36 market value to the sum believed to be its market value. It \n\line 181.1 shall raise the aggregate value of the personal property of \n\line 181.2 individuals, firms, or corporations, when it believes that the \n\line 181.3 aggregate valuation, as returned, is less than the market value \n\line 181.4 of the taxable personal property possessed by the individuals, \n\line 181.5 firms, or corporations, to the sum it believes to be the market \n\line 181.6 value. The board must first give notice to the persons of \n\line 181.7 intention to do so. The notice must set a time and place for a \n\line 181.8 hearing. \n\line 181.9 (4) The board shall reduce the valuation of each class of \n\line 181.10 personal property that is returned above its market value to the \n\line 181.11 sum it believes to be its market value. Upon complaint of a \n\line 181.12 party aggrieved, the board shall reduce the aggregate valuation \n\line 181.13 of the individual's personal property, or of any class of \n\line 181.14 personal property for which the individual is assessed, which in \n\line 181.15 its opinion has been assessed at too large a sum, to the sum it \n\line 181.16 believes was the market value of the individual's personal \n\line 181.17 property of that class. \n\line 181.18 (5) The board must not reduce the aggregate value of all \n\line 181.19 the property of its county, as submitted to the county board of \n\line 181.20 equalization, with the additions made by the auditor under this \n\line 181.21 chapter, by more than one percent of its whole valuation. The \n\line 181.22 board may raise the aggregate valuation of real property, and of \n\line 181.23 each class of personal property, of the county, or of any town \n\line 181.24 or district of the county, when it believes it is below the \n\line 181.25 market value of the property, or class of property, to the \n\line 181.26 aggregate amount it believes to be its market value. \n\line 181.27 (6) The board shall change the classification of any \n\line 181.28 property which in its opinion is not properly classified. \n\line 181.29 {\ul (7) The board does not have the authority to grant an} \n\line 181.30 {\ul exemption or to order property removed from the tax rolls.} \n\line 181.31 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 181.32 {\ul following final enactment.} \n\line 181.33 Sec. 24. Minnesota Statutes 2002, section 275.025, \n\line 181.34 subdivision 1, is amended to read: \n\line 181.35 Subdivision 1. [LEVY AMOUNT.] The state general levy is \n\line 181.36 levied against commercial-industrial property and \n\line 182.1 seasonal {\ul residential} recreational property, as defined in this \n\line 182.2 section. The state general levy {\ul base amount} is $592,000,000 for \n\line 182.3 taxes payable in 2002. For taxes payable in subsequent years, \n\line 182.4 the levy {\ul base amount} is increased each year by multiplying the \n\line 182.5 {\ul levy base} amount for the prior year by the sum of one plus the \n\line 182.6 rate of increase, if any, in the implicit price deflator for \n\line 182.7 government consumption expenditures and gross investment for \n\line 182.8 state and local governments prepared by the Bureau of Economic \n\line 182.9 Analysts of the United States Department of Commerce for the \n\line 182.10 12-month period ending March 31 of the year prior to the year \n\line 182.11 the taxes are payable. The tax under this section is not \n\line 182.12 treated as a local tax rate under section 469.177 and is not the \n\line 182.13 levy of a governmental unit under chapters 276A and 473F. \n\line 182.14 Beginning in fiscal year 2004, and in each year thereafter, the \n\line 182.15 commissioner of finance shall deposit in an education reserve \n\line 182.16 account, which account is hereby established, the increased \n\line 182.17 amount of the state general levy received for deposit in the \n\line 182.18 general fund for that year over the amount of the state general \n\line 182.19 levy received for deposit in the general fund in fiscal year \n\line 182.20 2003. The amounts in the education reserve account do not lapse \n\line 182.21 or cancel each year, but remain until appropriated by law for \n\line 182.22 education aid or higher education funding. \n\line 182.23 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 182.24 {\ul payable in 2004 and thereafter, except that the change from} \n\line 182.25 {\ul "seasonal recreational property" to "seasonal residential} \n\line 182.26 {\ul recreational property" is effective the day following final} \n\line 182.27 {\ul enactment.} \n\line 182.28 Sec. 25. Minnesota Statutes 2002, section 275.025, \n\line 182.29 subdivision 3, is amended to read: \n\line 182.30 Subd. 3. [SEASONAL {\ul RESIDENTIAL} RECREATIONAL TAX CAPACITY.] \n\line 182.31 For the purposes of this section, "seasonal {\ul residential} \n\line 182.32 recreational tax capacity" means the tax capacity of all class \n\line 182.33 4c(1) property under section 273.13, subdivision 25, except that \n\line 182.34 the first $76,000 of market value of each noncommercial class \n\line 182.35 4c(1) property has a tax capacity for this purpose equal to 40 \n\line 182.36 percent of its tax capacity under section 273.13. \n\line 183.1 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 183.2 {\ul following final enactment.} \n\line 183.3 Sec. 26. Minnesota Statutes 2002, section 275.025, \n\line 183.4 subdivision 4, is amended to read: \n\line 183.5 Subd. 4. [APPORTIONMENT AND LEVY OF STATE GENERAL TAX.] \n\line 183.6 The state general tax must be distributed among the counties by \n\line 183.7 applying a uniform rate to each county's commercial-industrial \n\line 183.8 tax capacity and its seasonal {\ul residential} recreational tax \n\line 183.9 capacity. Within each county, the tax must be levied by \n\line 183.10 applying a uniform rate against commercial-industrial tax \n\line 183.11 capacity and seasonal {\ul residential} recreational tax capacity. {\strike By} \n\line 183.12 {\ul On or before} November 1 each year, the commissioner of revenue \n\line 183.13 shall certify {\strike the} {\ul a preliminary} state general levy rate to each \n\line 183.14 county auditor {\ul that must be used to prepare the notices of} \n\line 183.15 {\ul proposed property taxes for taxes payable in the following} \n\line 183.16 {\ul year. By January 1 of each year, the commissioner shall certify} \n\line 183.17 {\ul the final state general levy rate to each county auditor that} \n\line 183.18 {\ul shall be used in spreading taxes}. \n\line 183.19 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 183.20 {\ul payable in 2004 and thereafter, except that the change from} \n\line 183.21 {\ul "seasonal recreational tax capacity" to "seasonal residential} \n\line 183.22 {\ul recreational tax capacity" is effective the day following final} \n\line 183.23 {\ul enactment.} \n\line 183.24 Sec. 27. Minnesota Statutes 2002, section 276.10, is \n\line 183.25 amended to read: \n\line 183.26 276.10 [APPORTIONMENT AND DISTRIBUTION OF FUNDS.] \n\line 183.27 On the settlement day determined in section 276.09 for each \n\line 183.28 year, the county auditor and county treasurer shall distribute \n\line 183.29 all undistributed funds in the treasury. The funds must be \n\line 183.30 apportioned as provided by law, and credited to the {\strike state,} town, \n\line 183.31 city, school district, special district and each county fund. \n\line 183.32 Within 20 days after the distribution is completed, the county \n\line 183.33 auditor shall report to the state auditor in the form prescribed \n\line 183.34 by the state auditor. The county auditor shall issue a warrant \n\line 183.35 for the payment of money in the county treasury to the credit of \n\line 183.36 the {\strike state,} town, city, school district, or special districts on \n\line 184.1 application of the persons entitled to receive the payment. The \n\line 184.2 county auditor may apply the local tax rate from the year before \n\line 184.3 the year of distribution when apportioning and distributing \n\line 184.4 delinquent tax proceeds, if the composition of the previous \n\line 184.5 year's local tax rate between taxing districts is not \n\line 184.6 significantly different from the local tax rate that existed for \n\line 184.7 the year of the delinquency. \n\line 184.8 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 184.9 {\ul payable in 2004 and thereafter.} \n\line 184.10 Sec. 28. Minnesota Statutes 2002, section 276.11, \n\line 184.11 subdivision 1, is amended to read: \n\line 184.12 Subdivision 1. [GENERALLY.] As soon as practical after the \n\line 184.13 settlement day determined in section 276.09, the county \n\line 184.14 treasurer shall pay to {\strike the state treasurer or} the treasurer of a \n\line 184.15 town, city, school district, or special district, on the warrant \n\line 184.16 of the county auditor, all receipts of taxes levied by the \n\line 184.17 taxing district and deliver up all orders and other evidences of \n\line 184.18 indebtedness of the taxing district, taking triplicate receipts \n\line 184.19 for them. The treasurer shall file one of the receipts with the \n\line 184.20 county auditor, and shall return one by mail on the day of its \n\line 184.21 receipt to the clerk of the town, city, school district, or \n\line 184.22 special district to which payment was made. The clerk shall \n\line 184.23 keep the receipt in the clerk's office. Upon written request of \n\line 184.24 the taxing district, to the extent practicable, the county \n\line 184.25 treasurer shall make partial payments of amounts collected \n\line 184.26 periodically in advance of the next settlement and \n\line 184.27 distribution. A statement prepared by the county treasurer must \n\line 184.28 accompany each payment. It must state the years for which taxes \n\line 184.29 included in the payment were collected and, for each year, the \n\line 184.30 amount of the taxes and any penalties on the tax. Upon written \n\line 184.31 request of a taxing district, except school districts, the \n\line 184.32 county treasurer shall pay at least 70 percent of the estimated \n\line 184.33 collection within 30 days after the settlement date determined \n\line 184.34 in section 276.09. Within seven business days after the due \n\line 184.35 date, or 28 calendar days after the postmark date on the \n\line 184.36 envelopes containing real or personal property tax statements, \n\line 185.1 whichever is latest, the county treasurer shall pay to the \n\line 185.2 treasurer of the school districts 50 percent of the estimated \n\line 185.3 collections arising from taxes levied by and belonging to the \n\line 185.4 school district, unless the school district elects to receive 50 \n\line 185.5 percent of the estimated collections arising from taxes levied \n\line 185.6 by and belonging to the school district after making a \n\line 185.7 proportionate reduction to reflect any loss in collections as \n\line 185.8 the result of any delay in mailing tax statements. In that \n\line 185.9 case, 50 percent of those adjusted, estimated collections shall \n\line 185.10 be paid by the county treasurer to the treasurer of the school \n\line 185.11 district within seven business days of the due date. The \n\line 185.12 remaining 50 percent of the estimated collections must be paid \n\line 185.13 to the treasurer of the school district within the next seven \n\line 185.14 business days of the later of the dates in the preceding \n\line 185.15 sentence, unless the school district elects to receive the \n\line 185.16 remainder of its estimated collections after a proportionate \n\line 185.17 reduction has been made to reflect any loss in collections as \n\line 185.18 the result of any delay in mailing tax statements. In that \n\line 185.19 case, the remaining 50 percent of those adjusted, estimated \n\line 185.20 collections shall be paid by the county treasurer to the \n\line 185.21 treasurer of the school district within 14 days of the due \n\line 185.22 date. The treasurer shall pay the balance of the amounts \n\line 185.23 collected {\strike to the state before June 30, or} to a municipal \n\line 185.24 corporation or other body within 60 days after the settlement \n\line 185.25 date determined in section 276.09. After 45 days interest at an \n\line 185.26 annual rate of eight percent accrues and must be paid to the \n\line 185.27 taxing district. Interest must be paid upon appropriation from \n\line 185.28 the general revenue fund of the county. If not paid, it may be \n\line 185.29 recovered by the taxing district, in a civil action. \n\line 185.30 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 185.31 {\ul payable in 2004 and thereafter.} \n\line 185.32 Sec. 29. [276.112] [STATE PROPERTY TAXES; COUNTY \n\line 185.33 TREASURER.] \n\line 185.34 {\ul On or before January 25 each year, for the period ending} \n\line 185.35 {\ul December 31 of the prior year, and on or before June 29 each} \n\line 185.36 {\ul year, for the period ending on the most recent settlement day} \n\line 186.1 {\ul determined in section 276.09, and on or before December 2 each} \n\line 186.2 {\ul year, for the period ending ten business days after November 15,} \n\line 186.3 {\ul the county treasurer must make full settlement with the county} \n\line 186.4 {\ul auditor according to sections 276.09, 276.10, and 276.111 for} \n\line 186.5 {\ul all receipts of state property taxes levied under section} \n\line 186.6 {\ul 275.025, and must transmit those receipts to the commissioner of} \n\line 186.7 {\ul revenue by electronic means.} \n\line 186.8 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 186.9 {\ul following final enactment.} \n\line 186.10 Sec. 30. Minnesota Statutes 2002, section 277.20, \n\line 186.11 subdivision 2, is amended to read: \n\line 186.12 Subd. 2. [FILING OF LIEN FOR ENFORCEABILITY.] The lien \n\line 186.13 imposed by subdivision 1 is not enforceable against any \n\line 186.14 purchaser, mortgagee, pledgee, holder of a Uniform Commercial \n\line 186.15 Code security interest, mechanic's lienor, or judgment lien \n\line 186.16 creditor until a notice of lien has been filed by the county \n\line 186.17 treasurer in the office of the county recorder of the county in \n\line 186.18 which the property is situated, or{\ul ,} in the case of personal \n\line 186.19 property {\strike belonging to an individual who is not a resident of} \n\line 186.20 {\strike this state, or that is a corporation, partnership, or other} \n\line 186.21 {\strike organization}, in the office of the secretary of state. Priority \n\line 186.22 of a lien created under Laws 1991, chapter 291, article 15, \n\line 186.23 shall be determined in accordance with the provisions of section \n\line 186.24 507.34. Liens filed in the office of the county recorder shall \n\line 186.25 be filed with the state tax liens filed pursuant to section \n\line 186.26 270.69, and the index shall indicate the name of the county for \n\line 186.27 which the lien was filed. If the land is registered, the notice \n\line 186.28 of lien shall be filed in the office of the registrar of titles \n\line 186.29 of the county in which the property is registered. \n\line 186.30 Notwithstanding any other law to the contrary, the county \n\line 186.31 treasurer is exempt from the payment of fees when the lien is \n\line 186.32 offered for filing or recording; the fee for filing or recording \n\line 186.33 the lien must be paid at the time the release of lien is offered \n\line 186.34 for filing or recording. Notwithstanding any law to the \n\line 186.35 contrary, the fee for filing or recording the lien or the \n\line 186.36 release of lien is $15. \n\line 187.1 [EFFECTIVE DATE.] {\ul This section is effective for liens filed} \n\line 187.2 {\ul on or after the day following final enactment.} \n\line 187.3 Sec. 31. Minnesota Statutes 2002, section 279.06, \n\line 187.4 subdivision 1, is amended to read: \n\line 187.5 Subdivision 1. [LIST AND NOTICE.] Within five days after \n\line 187.6 the filing of such list, the court administrator shall return a \n\line 187.7 copy thereof to the county auditor, with a notice prepared and \n\line 187.8 signed by the court administrator, and attached thereto, which \n\line 187.9 may be substantially in the following form: \n\line 187.10 State of Minnesota ) \n\line 187.11 ) ss. \n\line 187.12 County of ............... ) \n\line 187.13 District Court\n\line 187.14 .......... Judicial District.\n\line 187.15 The state of Minnesota, to all persons, companies, or \n\line 187.16 corporations who have or claim any estate, right, title, or \n\line 187.17 interest in, claim to, or lien upon, any of the several parcels \n\line 187.18 of land described in the list hereto attached: \n\line 187.19 The list of taxes and penalties on real property for the \n\line 187.20 county of ............................... remaining delinquent \n\line 187.21 on the first Monday in January, ......., has been filed in the \n\line 187.22 office of the court administrator of the district court of said \n\line 187.23 county, of which that hereto attached is a copy. Therefore, \n\line 187.24 you, and each of you, are hereby required to file in the office \n\line 187.25 of said court administrator, on or before the 20th day after the \n\line 187.26 publication of this notice and list, your answer, in writing, \n\line 187.27 setting forth any objection or defense you may have to the \n\line 187.28 taxes, or any part thereof, upon any parcel of land described in \n\line 187.29 the list, in, to, or on which you have or claim any estate, \n\line 187.30 right, title, interest, claim, or lien, and, in default thereof, \n\line 187.31 judgment will be entered against such parcel of land for the \n\line 187.32 taxes on such list appearing against it, and for all penalties, \n\line 187.33 interest, and costs. Based upon said judgment, the land shall \n\line 187.34 be sold to the state of Minnesota on the second Monday in May, \n\line 187.35 ....... The period of redemption for all lands sold to the \n\line 187.36 state at a tax judgment sale shall be three years from the date \n\line 188.1 of sale to the state of Minnesota if the land is within an \n\line 188.2 incorporated area unless it is: \n\line 188.3 (a) nonagricultural homesteaded land as defined in section \n\line 188.4 273.13, subdivision 22; \n\line 188.5 (b) homesteaded agricultural land as defined in section \n\line 188.6 273.13, subdivision 23, paragraph (a); \n\line 188.7 (c) seasonal {\ul residential} recreational land as defined in \n\line 188.8 section 273.13, subdivisions 22, paragraph (c), and 25, \n\line 188.9 paragraph {\strike (c)} {\ul (d)}, clause {\strike (5)} {\ul (1)}, in which event the period of \n\line 188.10 redemption is five years from the date of sale to the state of \n\line 188.11 Minnesota; \n\line 188.12 (d) abandoned property and pursuant to section 281.173 a \n\line 188.13 court order has been entered shortening the redemption period to \n\line 188.14 five weeks; or \n\line 188.15 (e) vacant property as described under section 281.174, \n\line 188.16 subdivision 2, and for which a court order is entered shortening \n\line 188.17 the redemption period under section 281.174. \n\line 188.18 The period of redemption for all other lands sold to the \n\line 188.19 state at a tax judgment sale shall be five years from the date \n\line 188.20 of sale. \n\line 188.21 Inquiries as to the proceedings set forth above can be made \n\line 188.22 to the county auditor of ..... county whose address is ..... . \n\line 188.23 (Signed) ............................................., \n\line 188.24 Court Administrator of the District Court of the County \n\line 188.25 of .................................................... \n\line 188.26 (Here insert list.) \n\line 188.27 The list referred to in the notice shall be substantially \n\line 188.28 in the following form: \n\line 188.29 List of real property for the county of \n\line 188.30 ......................., on which taxes remain delinquent on the \n\line 188.31 first Monday in January, .......: \n\line 188.32 Town of (Fairfield), \n\line 188.33 Township (40), Range (20), \n\line 188.34 Names (and \n\line 188.35 Current Filed \n\line 188.36 Addresses) for \n\line 189.1 the Taxpayers \n\line 189.2 and Fee Owners \n\line 189.3 and in Addition \n\line 189.4 Those Parties \n\line 189.5 Who Have Filed \n\line 189.6 Their Addresses Tax \n\line 189.7 Pursuant to Subdivision of Parcel Total Tax \n\line 189.8 section 276.041 Section Section Number and Penalty\n\line 189.9 $ cts.\n\line 189.10 John Jones S.E. 1/4 of S.W. 1/4 10 23101 2.20 \n\line 189.11 (825 Fremont \n\line 189.12 Fairfield, MN \n\line 189.13 55000) \n\line 189.14 Bruce Smith That part of N.E. 1/4 \n\line 189.15 (2059 Hand of S.W. 1/4 desc. as \n\line 189.16 Fairfield, follows: Beg. at the \n\line 189.17 MN 55000) S.E. corner of said \n\line 189.18 and N.E. 1/4 of S.W. 1/4; \n\line 189.19 Fairfield thence N. along the E. \n\line 189.20 State Bank line of said N.E. 1/4 \n\line 189.21 (100 Main of S.W. 1/4 a distance \n\line 189.22 Street of 600 ft.; thence W. \n\line 189.23 Fairfield, parallel with the S. \n\line 189.24 MN 55000) line of said N.E. 1/4 \n\line 189.25 of S.W. 1/4 a distance \n\line 189.26 of 600 ft.; thence S. \n\line 189.27 parallel with said E. \n\line 189.28 line a distance of 600 \n\line 189.29 ft. to S. line of said \n\line 189.30 N.E. 1/4 of S.W. 1/4;\n\line 189.31 thence E. along said S. \n\line 189.32 line a distance of 600 \n\line 189.33 ft. to the point of \n\line 189.34 beg. ............... 21 33211 3.15 \n\line 189.35 As to platted property, the form of heading shall conform \n\line 189.36 to circumstances and be substantially in the following form: \n\line 190.1 City of (Smithtown) \n\line 190.2 Brown's Addition, or Subdivision \n\line 190.3 Names (and \n\line 190.4 Current Filed \n\line 190.5 Addresses) for \n\line 190.6 the Taxpayers \n\line 190.7 and Fee Owners \n\line 190.8 and in Addition \n\line 190.9 Those Parties \n\line 190.10 Who have Filed \n\line 190.11 Their Addresses Tax \n\line 190.12 Pursuant to Parcel Total Tax \n\line 190.13 section 276.041 Lot Block Number and Penalty\n\line 190.14 $ cts.\n\line 190.15 John Jones 15 9 58243 2.20 \n\line 190.16 (825 Fremont \n\line 190.17 Fairfield, \n\line 190.18 MN 55000) \n\line 190.19 Bruce Smith 16 9 58244 3.15 \n\line 190.20 (2059 Hand \n\line 190.21 Fairfield, \n\line 190.22 MN 55000) \n\line 190.23 and \n\line 190.24 Fairfield \n\line 190.25 State Bank \n\line 190.26 (100 Main Street \n\line 190.27 Fairfield, \n\line 190.28 MN 55000) \n\line 190.29 The names, descriptions, and figures employed in \n\line 190.30 parentheses in the above forms are merely for purposes of \n\line 190.31 illustration. \n\line 190.32 The name of the town, township, range or city, and addition \n\line 190.33 or subdivision, as the case may be, shall be repeated at the \n\line 190.34 head of each column of the printed lists as brought forward from \n\line 190.35 the preceding column. \n\line 190.36 Errors in the list shall not be deemed to be a material \n\line 191.1 defect to affect the validity of the judgment and sale. \n\line 191.2 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 191.3 {\ul following final enactment.} \n\line 191.4 Sec. 32. Minnesota Statutes 2002, section 281.17, is \n\line 191.5 amended to read: \n\line 191.6 281.17 [PERIOD FOR REDEMPTION.] \n\line 191.7 Except for properties for which the period of redemption \n\line 191.8 has been limited under sections 281.173 and 281.174, the \n\line 191.9 following periods for redemption apply. \n\line 191.10 The period of redemption for all lands sold to the state at \n\line 191.11 a tax judgment sale shall be three years from the date of sale \n\line 191.12 to the state of Minnesota if the land is within an incorporated \n\line 191.13 area unless it is: (a) nonagricultural homesteaded land as \n\line 191.14 defined in section 273.13, subdivision 22; (b) homesteaded \n\line 191.15 agricultural land as defined in section 273.13, subdivision 23, \n\line 191.16 paragraph (a); or (c) seasonal {\ul residential} recreational land as \n\line 191.17 defined in section 273.13, subdivision 22, paragraph (c), or 25, \n\line 191.18 paragraph (d), clause (1), for which the period of redemption is \n\line 191.19 five years from the date of sale to the state of Minnesota. \n\line 191.20 The period of redemption for homesteaded lands as defined \n\line 191.21 in section 273.13, subdivision 22, located in a targeted \n\line 191.22 neighborhood as defined in Laws 1987, chapter 386, article 6, \n\line 191.23 section 4, and sold to the state at a tax judgment sale is three \n\line 191.24 years from the date of sale. The period of redemption for all \n\line 191.25 lands located in a targeted neighborhood as defined in Laws \n\line 191.26 1987, chapter 386, article 6, section 4, except (1) homesteaded \n\line 191.27 lands as defined in section 273.13, subdivision 22, and (2) for \n\line 191.28 periods of redemption beginning after June 30, 1991, but before \n\line 191.29 July 1, 1996, lands located in the Loring Park targeted \n\line 191.30 neighborhood on which a notice of lis pendens has been served, \n\line 191.31 and sold to the state at a tax judgment sale is one year from \n\line 191.32 the date of sale. \n\line 191.33 The period of redemption for all real property constituting \n\line 191.34 a mixed municipal solid waste disposal facility that is a \n\line 191.35 qualified facility under section 115B.39, subdivision 1, is one \n\line 191.36 year from the date of the sale to the state of Minnesota. \n\line 192.1 The period of redemption for all other lands sold to the \n\line 192.2 state at a tax judgment sale shall be five years from the date \n\line 192.3 of sale, except that the period of redemption for nonhomesteaded \n\line 192.4 agricultural land as defined in section 273.13, subdivision 23, \n\line 192.5 paragraph (b), shall be two years from the date of sale if at \n\line 192.6 that time that property is owned by a person who owns one or \n\line 192.7 more parcels of property on which taxes are delinquent, and the \n\line 192.8 delinquent taxes are more than 25 percent of the prior year's \n\line 192.9 school district levy. \n\line 192.10 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 192.11 {\ul following final enactment.} \n\line 192.12 Sec. 33. Minnesota Statutes 2002, section 282.01, \n\line 192.13 subdivision 1b, is amended to read: \n\line 192.14 Subd. 1b. [CONVEYANCE; TARGETED NEIGHBORHOOD LANDS.] (a) \n\line 192.15 Notwithstanding subdivision 1a, in the case of tax-forfeited \n\line 192.16 lands located in a targeted neighborhood, as defined in section \n\line 192.17 469.201, subdivision 10, and section 473.121, subdivision 2, the \n\line 192.18 commissioner of revenue shall convey by deed in the name of the \n\line 192.19 state any tract of tax-forfeited land held in trust in favor of \n\line 192.20 the taxing districts, to a political subdivision that submits an \n\line 192.21 application to the commissioner of revenue and{\ul , in the case of} \n\line 192.22 {\ul targeted neighborhoods located outside of the metropolitan area} \n\line 192.23 {\ul as defined in section 473.121,} the recommendation of the county \n\line 192.24 board. \n\line 192.25 (b) The application under paragraph (a) must include a \n\line 192.26 statement of facts as to the use to be made of the tract, the \n\line 192.27 need therefor, and a resolution, adopted by the governing body \n\line 192.28 of the political subdivision, finding that the conveyance of a \n\line 192.29 tract of tax-forfeited land to the political subdivision is \n\line 192.30 necessary to provide for the redevelopment of land as productive \n\line 192.31 taxable property. Deeds of conveyance issued under paragraph \n\line 192.32 (a) are not conditioned on continued use of the property for the \n\line 192.33 use stated in the application. \n\line 192.34 [EFFECTIVE DATE.] {\ul This section is effective for deeds} \n\line 192.35 {\ul issued on or after July 1, 2003.} \n\line 192.36 Sec. 34. Minnesota Statutes 2002, section 282.01, \n\line 193.1 subdivision 7a, is amended to read: \n\line 193.2 Subd. 7a. [CITY SALES; ALTERNATE PROCEDURES.] Land located \n\line 193.3 in a home rule charter or statutory city, or in a town which \n\line 193.4 cannot be improved because of noncompliance with local \n\line 193.5 ordinances regarding minimum area, shape, frontage or access may \n\line 193.6 be sold by the county auditor pursuant to this subdivision if \n\line 193.7 the auditor determines that a nonpublic sale will encourage the \n\line 193.8 approval of sale of the land by the city or town and promote its \n\line 193.9 return to the tax rolls. If the physical characteristics of the \n\line 193.10 land indicate that its highest and best use will be achieved by \n\line 193.11 combining it with an adjoining parcel and the city or town has \n\line 193.12 not adopted a local ordinance governing minimum area, shape, \n\line 193.13 frontage, or access, the land may also be sold pursuant to this \n\line 193.14 subdivision. {\ul If the property consists of an undivided interest} \n\line 193.15 {\ul in land or land and improvements, the property may also be sold} \n\line 193.16 {\ul to the other owners under this subdivision.} The sale of land \n\line 193.17 pursuant to this subdivision shall be subject to any conditions \n\line 193.18 imposed by the county board pursuant to section 282.03. The \n\line 193.19 governing body of the city or town may recommend to the county \n\line 193.20 board conditions to be imposed on the sale. The county auditor \n\line 193.21 may restrict the sale to owners of lands adjoining the land to \n\line 193.22 be sold. The county auditor shall conduct the sale by sealed \n\line 193.23 bid or may select another means of sale. The land shall be sold \n\line 193.24 to the highest bidder but in no event shall the land be sold for \n\line 193.25 less than its appraised value. All owners of land adjoining the \n\line 193.26 land to be sold shall be given a written notice at least 30 days \n\line 193.27 prior to the sale. \n\line 193.28 This subdivision shall be liberally construed to encourage \n\line 193.29 the sale and utilization of tax-forfeited land, to eliminate \n\line 193.30 nuisances and dangerous conditions and to increase compliance \n\line 193.31 with land use ordinances. \n\line 193.32 [EFFECTIVE DATE.] {\ul This section is effective for sales} \n\line 193.33 {\ul occurring on or after the day following final enactment.} \n\line 193.34 Sec. 35. Minnesota Statutes 2002, section 282.08, is \n\line 193.35 amended to read: \n\line 193.36 282.08 [APPORTIONMENT OF PROCEEDS TO TAXING DISTRICTS.] \n\line 194.1 The net proceeds from the sale or rental of any parcel of \n\line 194.2 forfeited land, or from the sale of products from the forfeited \n\line 194.3 land, must be apportioned by the county auditor to the taxing \n\line 194.4 districts interested in the land, as follows: \n\line 194.5 (1) {\ul the amounts necessary to pay the state general tax levy} \n\line 194.6 {\ul against the parcel for taxes payable in the year for which the} \n\line 194.7 {\ul tax judgment was entered, and for each subsequent payable year} \n\line 194.8 {\ul up to and including the year of forfeiture, must be apportioned} \n\line 194.9 {\ul to the state;} \n\line 194.10 {\ul (2)} the portion required to pay any amounts included in the \n\line 194.11 appraised value under section 282.01, subdivision 3, as \n\line 194.12 representing increased value due to any public improvement made \n\line 194.13 after forfeiture of the parcel to the state, but not exceeding \n\line 194.14 the amount certified by the clerk of the municipality must be \n\line 194.15 apportioned to the municipal subdivision entitled to it; \n\line 194.16 {\strike (2)} {\ul (3)} the portion required to pay any amount included in \n\line 194.17 the appraised value under section 282.019, subdivision 5, \n\line 194.18 representing increased value due to response actions taken after \n\line 194.19 forfeiture of the parcel to the state, but not exceeding the \n\line 194.20 amount of expenses certified by the pollution control agency or \n\line 194.21 the commissioner of agriculture, must be apportioned to the \n\line 194.22 agency or the commissioner of agriculture and deposited in the \n\line 194.23 fund from which the expenses were paid; \n\line 194.24 {\strike (3)} {\ul (4)} the portion of the remainder required to discharge \n\line 194.25 any special assessment chargeable against the parcel for \n\line 194.26 drainage or other purpose whether due or deferred at the time of \n\line 194.27 forfeiture, must be apportioned to the municipal subdivision \n\line 194.28 entitled to it; and \n\line 194.29 {\strike (4)} {\ul (5)} any balance must be apportioned as follows: \n\line 194.30 (i) The county board may annually by resolution set aside \n\line 194.31 no more than 30 percent of the receipts remaining to be used for \n\line 194.32 timber development on tax-forfeited land and dedicated memorial \n\line 194.33 forests, to be expended under the supervision of the county \n\line 194.34 board. It must be expended only on projects approved by the \n\line 194.35 commissioner of natural resources. \n\line 194.36 (ii) The county board may annually by resolution set aside \n\line 195.1 no more than 20 percent of the receipts remaining to be used for \n\line 195.2 the acquisition and maintenance of county parks or recreational \n\line 195.3 areas as defined in sections 398.31 to 398.36, to be expended \n\line 195.4 under the supervision of the county board. \n\line 195.5 (iii) Any balance remaining must be apportioned as \n\line 195.6 follows: county, 40 percent; town or city, 20 percent; and \n\line 195.7 school district, 40 percent, provided, however, that in \n\line 195.8 unorganized territory that portion which would have accrued to \n\line 195.9 the township must be administered by the county board of \n\line 195.10 commissioners. \n\line 195.11 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 195.12 {\ul payable in 2004 and thereafter.} \n\line 195.13 Sec. 36. Minnesota Statutes 2002, section 290C.02, \n\line 195.14 subdivision 3, is amended to read: \n\line 195.15 Subd. 3. [CLAIMANT.] "Claimant" means a person, as that \n\line 195.16 term is defined in section 290.01, subdivision 2, who owns \n\line 195.17 forest land in Minnesota and files an application authorized by \n\line 195.18 the Sustainable Forest Incentive Act. {\ul For purposes of section} \n\line 195.19 {\ul 290C.11, claimant also includes any person bound by the covenant} \n\line 195.20 {\ul required in section 290C.04.} No more than one claimant is \n\line 195.21 entitled to a payment under this chapter with respect to any \n\line 195.22 tract, parcel, or piece of land enrolled under this chapter {\ul that} \n\line 195.23 {\ul has been assigned the same parcel identification number}. When \n\line 195.24 enrolled forest land is owned by two or more persons, the owners \n\line 195.25 must determine between them which person may claim the payments \n\line 195.26 provided under sections 290C.01 to 290C.11. \n\line 195.27 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 195.28 {\ul following final enactment.} \n\line 195.29 Sec. 37. Minnesota Statutes 2002, section 290C.02, \n\line 195.30 subdivision 7, is amended to read: \n\line 195.31 Subd. 7. [FOREST MANAGEMENT PLAN.] "Forest management \n\line 195.32 plan" means a written document providing a framework for \n\line 195.33 site-specific healthy, productive, and sustainable forest \n\line 195.34 resources. A forest management plan must include at least the \n\line 195.35 following: (i) owner-specific forest management goals for the \n\line 195.36 {\strike property} {\ul land}; (ii) a reliable field inventory of the individual \n\line 196.1 forest cover types, their age, and density; (iii) a description \n\line 196.2 of the soil type and quality; (iv) an aerial photo and/or map of \n\line 196.3 the vegetation and other natural features of the {\strike property} {\ul land} \n\line 196.4 clearly indicating the boundaries of the {\strike property} {\ul land} and of \n\line 196.5 the forest land; (v) the proposed future conditions of the \n\line 196.6 {\strike property} {\ul land}; (vi) prescriptions to meet proposed future \n\line 196.7 conditions of the {\strike property} {\ul land}; (vii) a recommended timetable \n\line 196.8 for implementing the prescribed activities; and (viii) a legal \n\line 196.9 description of the {\strike parcels} {\ul land} encompassing the parcels \n\line 196.10 included in the plan. All management activities prescribed in a \n\line 196.11 plan must be in accordance with the recommended timber \n\line 196.12 harvesting and forest management guidelines. The commissioner \n\line 196.13 of natural resources shall provide a framework for plan content \n\line 196.14 and updating and revising plans. \n\line 196.15 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 196.16 {\ul following final enactment.} \n\line 196.17 Sec. 38. Minnesota Statutes 2002, section 290C.03, is \n\line 196.18 amended to read: \n\line 196.19 290C.03 [ELIGIBILITY REQUIREMENTS.] \n\line 196.20 (a) {\strike Property} {\ul Land} may be enrolled in the sustainable forest \n\line 196.21 incentive program under this chapter if all of the following \n\line 196.22 conditions are met: \n\line 196.23 (1) {\strike property} {\ul the land} consists of at least 20 contiguous \n\line 196.24 acres and at least 50 percent of the land must meet the \n\line 196.25 definition of forest land in section 88.01, subdivision 7, \n\line 196.26 during the enrollment; \n\line 196.27 (2) a forest management plan for the {\strike property} {\ul land} must be \n\line 196.28 prepared by an approved plan writer and implemented during the \n\line 196.29 period in which the land is enrolled; \n\line 196.30 (3) timber harvesting and forest management guidelines must \n\line 196.31 be used in conjunction with any timber harvesting or forest \n\line 196.32 management activities conducted on the land during the period in \n\line 196.33 which the land is enrolled; \n\line 196.34 (4) the {\strike property} {\ul land} must be enrolled for a minimum of \n\line 196.35 eight years; \n\line 196.36 (5) there are no delinquent property taxes on the {\strike property} \n\line 197.1 {\ul land}; and \n\line 197.2 (6) claimants enrolling more than 1,920 acres in the \n\line 197.3 sustainable forest incentive program must allow year-round, \n\line 197.4 nonmotorized access to fish and wildlife resources on enrolled \n\line 197.5 land except within one-fourth mile of a permanent dwelling or \n\line 197.6 during periods of high fire hazard as determined by the \n\line 197.7 commissioner of natural resources. \n\line 197.8 (b) Claimants required to allow access under paragraph (a), \n\line 197.9 clause (6), do not by that action: \n\line 197.10 (1) extend any assurance that the land is safe for any \n\line 197.11 purpose; \n\line 197.12 (2) confer upon the person the legal status of an invitee \n\line 197.13 or licensee to whom a duty of care is owed; or \n\line 197.14 (3) assume responsibility for or incur liability for any \n\line 197.15 injury to the person or property caused by an act or omission of \n\line 197.16 the person. \n\line 197.17 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 197.18 {\ul following final enactment.} \n\line 197.19 Sec. 39. Minnesota Statutes 2002, section 290C.07, is \n\line 197.20 amended to read: \n\line 197.21 290C.07 [CALCULATION OF INCENTIVE PAYMENT.] \n\line 197.22 An approved claimant under the sustainable forest incentive \n\line 197.23 program is eligible to receive an annual payment. The payment \n\line 197.24 shall equal the greater of: \n\line 197.25 (1) the difference between the property tax that would be \n\line 197.26 paid on the {\strike property} {\ul land} using the previous year's statewide \n\line 197.27 average total township tax rate and the class rate for class 2b \n\line 197.28 timberland under section 273.13, subdivision 23, paragraph (b), \n\line 197.29 if the {\strike property} {\ul land} were valued at (i) the average statewide \n\line 197.30 timberland market value per acre calculated under section \n\line 197.31 290C.06, and (ii) the average statewide timberland current use \n\line 197.32 value per acre calculated under section 290C.02, subdivision 5; \n\line 197.33 (2) two-thirds of the property tax amount determined by \n\line 197.34 using the previous year's statewide average total township tax \n\line 197.35 rate, the estimated market value per acre as calculated in \n\line 197.36 section 290C.06, and the class rate for 2b timberland under \n\line 198.1 section 273.13, subdivision 23, paragraph (b); or \n\line 198.2 (3) $1.50 per acre for each acre enrolled in the \n\line 198.3 sustainable forest incentive program. \n\line 198.4 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 198.5 {\ul following final enactment.} \n\line 198.6 Sec. 40. Minnesota Statutes 2002, section 290C.09, is \n\line 198.7 amended to read: \n\line 198.8 290C.09 [REMOVAL FOR PROPERTY TAX DELINQUENCY.] \n\line 198.9 The commissioner shall immediately remove any {\strike property} {\ul land} \n\line 198.10 enrolled in the sustainable forest incentive program for which \n\line 198.11 taxes are determined to be delinquent as provided in chapter 279 \n\line 198.12 and shall notify the claimant of such action. Lands terminated \n\line 198.13 from the sustainable forest incentive program under this section \n\line 198.14 are not entitled to any payments provided in this chapter and \n\line 198.15 are subject to removal penalties prescribed in section 290C.11. \n\line 198.16 The claimant has 60 days from the receipt of notice from the \n\line 198.17 commissioner under this section to pay the delinquent taxes. If \n\line 198.18 the delinquent taxes are paid within this 60-day period, the \n\line 198.19 lands shall be reinstated in the program as if they had not been \n\line 198.20 withdrawn and without the payment of a penalty. \n\line 198.21 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 198.22 {\ul following final enactment.} \n\line 198.23 Sec. 41. Minnesota Statutes 2002, section 290C.10, is \n\line 198.24 amended to read: \n\line 198.25 290C.10 [WITHDRAWAL PROCEDURES.] \n\line 198.26 An approved claimant under the sustainable forest incentive \n\line 198.27 program for a minimum of four years may notify the commissioner \n\line 198.28 of the intent to terminate enrollment. Within 90 days of \n\line 198.29 receipt of notice to terminate enrollment, the commissioner \n\line 198.30 shall inform the claimant in writing, acknowledging receipt of \n\line 198.31 this notice and indicating the effective date of termination \n\line 198.32 from the sustainable forest incentive program. Termination of \n\line 198.33 enrollment in the sustainable forest incentive program occurs on \n\line 198.34 January 1 of the fifth calendar year that begins after receipt \n\line 198.35 by the commissioner of the termination notice. After the \n\line 198.36 commissioner issues an effective date of termination, a claimant \n\line 199.1 wishing to continue the {\strike property's} {\ul land's} enrollment in the \n\line 199.2 sustainable forest incentive program beyond the termination date \n\line 199.3 must apply for enrollment as prescribed in section 290C.04. A \n\line 199.4 claimant who withdraws a parcel of land from this program may \n\line 199.5 not reenroll the parcel for a period of three years. Within 90 \n\line 199.6 days after the termination date, the commissioner shall execute \n\line 199.7 and acknowledge a document releasing the land from the covenant \n\line 199.8 required under this chapter. The document must be mailed to the \n\line 199.9 claimant and is entitled to be recorded. The commissioner may \n\line 199.10 allow early withdrawal from the Sustainable Forest Incentive Act \n\line 199.11 without penalty in cases of condemnation for a public purpose \n\line 199.12 notwithstanding the provisions of this section. \n\line 199.13 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 199.14 {\ul following final enactment.} \n\line 199.15 Sec. 42. Minnesota Statutes 2002, section 290C.11, is \n\line 199.16 amended to read: \n\line 199.17 290C.11 [PENALTIES FOR REMOVAL.] \n\line 199.18 (a) If the commissioner determines that {\strike property} {\ul land} \n\line 199.19 enrolled in the sustainable forest incentive program is in \n\line 199.20 violation of the conditions for enrollment as specified in \n\line 199.21 section 290C.03, the commissioner shall notify the claimant of \n\line 199.22 the intent to remove all enrolled land from the sustainable \n\line 199.23 forest incentive program. The claimant has 60 days to appeal \n\line 199.24 this determination. The appeal must be made in writing to the \n\line 199.25 commissioner, who shall, within 60 days, notify the claimant as \n\line 199.26 to the outcome of the appeal. Within 60 days after the \n\line 199.27 commissioner denies an appeal, or within 120 days after the \n\line 199.28 commissioner received a written appeal if the commissioner has \n\line 199.29 not made a determination in that time, the owner may appeal to \n\line 199.30 tax court under chapter 271 as if the appeal is from an order of \n\line 199.31 the commissioner. \n\line 199.32 (b) If the commissioner determines the {\strike property} {\ul land} is to \n\line 199.33 be removed from the sustainable forest incentive program, the \n\line 199.34 claimant is liable for payment to the commissioner in the amount \n\line 199.35 equal to the payments received under this chapter for the \n\line 199.36 previous four-year period, plus interest. The claimant has 90 \n\line 200.1 days to satisfy the payment for removal of land from the \n\line 200.2 sustainable forest incentive program under this section. If the \n\line 200.3 penalty is not paid within the 90-day period under this \n\line 200.4 paragraph, the commissioner shall certify the amount to the \n\line 200.5 county auditor for collection as a part of the general ad \n\line 200.6 valorem real property taxes on the land in the following taxes \n\line 200.7 payable year. \n\line 200.8 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 200.9 {\ul following final enactment.} \n\line 200.10 Sec. 43. [290C.12] [DEATH OF CLAIMANT.] \n\line 200.11 {\ul Within one year after the death of the claimant, the} \n\line 200.12 {\ul claimant's heir, devisee, or estate must either:} \n\line 200.13 {\ul (1) notify the commissioner of election to terminate} \n\line 200.14 {\ul enrollment in the sustainable forest incentive program; or} \n\line 200.15 {\ul (2) make an application under this chapter to continue} \n\line 200.16 {\ul enrollment of the land in the program.} \n\line 200.17 {\ul Upon notification under clause (1), the commissioner shall} \n\line 200.18 {\ul terminate the enrollment and issue a document releasing the land} \n\line 200.19 {\ul from the covenant as provided in section 290C.04, paragraph} \n\line 200.20 {\ul (c). Penalties under section 290C.11 shall not apply. If the} \n\line 200.21 {\ul application under clause (2) is approved, the land is enrolled} \n\line 200.22 {\ul in the program without a break. If the commissioner does not} \n\line 200.23 {\ul receive notification within one year after the date of death,} \n\line 200.24 {\ul enrollment in the program shall be terminated and penalties} \n\line 200.25 {\ul under section 290C.11 shall not apply.} \n\line 200.26 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 200.27 {\ul following final enactment, except in the case of claimants dying} \n\line 200.28 {\ul prior to the day following final enactment, heirs, devisees, or} \n\line 200.29 {\ul estates may make the election either six months after the} \n\line 200.30 {\ul effective date of this provision or one year after the death of} \n\line 200.31 {\ul the claimant, whichever is later.} \n\line 200.32 Sec. 44. Minnesota Statutes 2002, section 469.1792, \n\line 200.33 subdivision 3, is amended to read: \n\line 200.34 Subd. 3. [ACTIONS AUTHORIZED.] (a) An authority with a \n\line 200.35 district qualifying under this section may take either or both \n\line 200.36 of the following actions for any or all of its preexisting \n\line 201.1 districts: \n\line 201.2 (1) the authority may elect that the original local tax \n\line 201.3 rate under section 469.177, subdivision 1a, does not apply to \n\line 201.4 the district; and \n\line 201.5 (2) the authority may elect the fiscal disparities \n\line 201.6 contribution will be computed under section 469.177, subdivision \n\line 201.7 3, paragraph (a), regardless of the election that was made for \n\line 201.8 the district. \n\line 201.9 (b) The authority may take action under this subdivision \n\line 201.10 only after the municipality approves the action, by resolution, \n\line 201.11 after notice and public hearing in the manner provided under \n\line 201.12 section 469.175, subdivision 2. {\ul To be effective for taxes} \n\line 201.13 {\ul payable in the following year, the resolution must be adopted} \n\line 201.14 {\ul and the county auditor must be notified of the adoption on or} \n\line 201.15 {\ul before July 1.} \n\line 201.16 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 201.17 {\ul payable in 2004 and thereafter.} \n\line 201.18 Sec. 45. Minnesota Statutes 2002, section 473F.07, \n\line 201.19 subdivision 4, is amended to read: \n\line 201.20 Subd. 4. [DISTRIBUTION NET TAX CAPACITY.] The \n\line 201.21 administrative auditor shall determine the proportion which the \n\line 201.22 index of each municipality bears to the sum of the indices of \n\line 201.23 all municipalities and shall then multiply this proportion in \n\line 201.24 the case of each municipality, by the areawide net tax capacity{\strike ,} \n\line 201.25 {\strike provided that if the distribution net tax capacity for a} \n\line 201.26 {\strike municipality is less than 95 percent of the municipality's} \n\line 201.27 {\strike previous year distribution net tax capacity, and more than ten} \n\line 201.28 {\strike percent of the municipality's fiscal capacity consists of} \n\line 201.29 {\strike manufactured home property, the municipality's distribution net} \n\line 201.30 {\strike tax capacity will be increased to 95 percent of the previous} \n\line 201.31 {\strike year net tax capacity and the distribution net tax capacity of} \n\line 201.32 {\strike other municipalities in the area will be proportionately reduced}.\n\line 201.33 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 201.34 {\ul payable in 2004 and subsequent years.} \n\line 201.35 Sec. 46. Minnesota Statutes 2002, section 477A.011, \n\line 201.36 subdivision 30, is amended to read: \n\line 202.1 Subd. 30. [PRE-1940 HOUSING PERCENTAGE.] "Pre-1940 housing \n\line 202.2 percentage" for a city is 100 times the {\strike most recent} {\ul 1990} federal \n\line 202.3 census count of all housing units in the city built before 1940, \n\line 202.4 divided by the total number of all housing units in the city. \n\line 202.5 Housing units includes both occupied and vacant housing units as \n\line 202.6 defined by the federal census. \n\line 202.7 [EFFECTIVE DATE.] {\ul This section is effective for aids} \n\line 202.8 {\ul payable in 2003 and thereafter.} \n\line 202.9 Sec. 47. Minnesota Statutes 2002, section 515B.1-116, is \n\line 202.10 amended to read: \n\line 202.11 515B.1-116 [RECORDING.] \n\line 202.12 (a) A declaration, bylaws, any amendment to a declaration \n\line 202.13 or bylaws, and any other instrument affecting a common interest \n\line 202.14 community shall be entitled to be recorded. In those counties \n\line 202.15 which have a tract index, the county recorder shall enter the \n\line 202.16 declaration in the tract index for each unit affected. The \n\line 202.17 registrar of titles shall file the declaration in accordance \n\line 202.18 with section 508.351 or 508A.351. \n\line 202.19 (b) The recording officer shall upon request promptly \n\line 202.20 assign a number (CIC number) to a common interest community to \n\line 202.21 be formed or to a common interest community resulting from the \n\line 202.22 merger of two or more common interest communities. \n\line 202.23 (c) Documents recorded pursuant to this chapter shall in \n\line 202.24 the case of registered land be filed, and references to the \n\line 202.25 recording of documents shall mean filed in the case of \n\line 202.26 registered land. \n\line 202.27 (d) Subject to any specific requirements of this chapter, \n\line 202.28 if a recorded document relating to a common interest community \n\line 202.29 purports to require a certain vote or signatures approving any \n\line 202.30 restatement or amendment of the document by a certain number or \n\line 202.31 percentage of unit owners or secured parties, and if the \n\line 202.32 amendment or restatement is to be recorded pursuant to this \n\line 202.33 chapter, an affidavit of the president or secretary of the \n\line 202.34 association stating that the required vote or signatures have \n\line 202.35 been obtained shall be attached to the document to be recorded \n\line 202.36 and shall constitute prima facie evidence of the representations \n\line 203.1 contained therein. \n\line 203.2 (e) If a common interest community is located on registered \n\line 203.3 land, the recording fee for any document affecting two or more \n\line 203.4 units shall be the then-current fee for registering the document \n\line 203.5 on the certificates of title for the first ten affected \n\line 203.6 certificates and one-third of the then-current fee for each \n\line 203.7 additional affected certificate. This provision shall not apply \n\line 203.8 to recording fees for deeds of conveyance, with the exception of \n\line 203.9 deeds given pursuant to sections 515B.2-119 and 515B.3-112. \n\line 203.10 (f) Except as permitted under this subsection, a recording \n\line 203.11 officer shall not file or record a declaration creating a new \n\line 203.12 common interest community, unless the county treasurer has \n\line 203.13 certified that the property taxes payable in the current year \n\line 203.14 for the real estate included in the proposed common interest \n\line 203.15 community have been paid. This certification is in addition to \n\line 203.16 the certification for delinquent taxes required by section \n\line 203.17 272.12. In the case of preexisting common interest communities, \n\line 203.18 the recording officer shall accept, file, and record the \n\line 203.19 following instruments, without requiring a certification as to \n\line 203.20 the current or delinquent taxes on any of the units in the \n\line 203.21 common interest community: (i) a declaration subjecting the \n\line 203.22 common interest community to this chapter; (ii) a declaration \n\line 203.23 changing the form of a common interest community pursuant to \n\line 203.24 section 515B.2-123; or (iii) an amendment to or restatement of \n\line 203.25 the declaration, bylaws, or CIC plat. In order for {\strike the} \n\line 203.26 {\strike instruments} {\ul an instrument} to be accepted and recorded under the \n\line 203.27 preceding sentence, the {\strike assessor must certify or otherwise} \n\line 203.28 {\strike inform the recording officer that, for taxes payable in the} \n\line 203.29 {\strike current year, the assessor has allocated taxable values to each} \n\line 203.30 {\strike unit or has separately assessed each unit} {\ul instrument must not} \n\line 203.31 {\ul create or change unit or common area boundaries}. \n\line 203.32 [EFFECTIVE DATE.] {\ul This section is effective for deeds or} \n\line 203.33 {\ul instruments accepted for recording or registration on or after} \n\line 203.34 {\ul July 1, 2003.} \n\line 203.35 Sec. 48. Laws 2001, First Special Session chapter 5, \n\line 203.36 article 3, section 61, the effective date, is amended to read: \n\line 204.1 [EFFECTIVE DATE.] This section is effective {\ul August 1, 2001,} \n\line 204.2 for deeds issued on or after August 1, 2001. {\ul This section is} \n\line 204.3 {\ul effective August 1, 2006, for deeds issued before August 1, 2001.}\n\line 204.4 Sec. 49. Laws 2001, First Special Session chapter 5, \n\line 204.5 article 3, section 63, the effective date, is amended to read: \n\line 204.6 [EFFECTIVE DATE.] This section is effective {\ul August 1, 2001,} \n\line 204.7 for deeds issued on or after August 1, 2001. {\ul This section is} \n\line 204.8 {\ul effective August 1, 2006, for deeds issued before August 1, 2001.}\n\line 204.9 Sec. 50. Laws 2002, chapter 377, article 6, section 4, the \n\line 204.10 effective date, is amended to read: \n\line 204.11 [EFFECTIVE DATE.] This section is effective {\strike for aids} \n\line 204.12 {\strike payable in 2004} {\ul May 16, 2002, and thereafter}. \n\line 204.13 Sec. 51. [REPEALER.] \n\line 204.14 {\ul (a) Minnesota Statutes 2002, section 274.04, is repealed.} \n\line 204.15 {\ul (b) Minnesota Statutes 2002, section 477A.065, is repealed} \n\line 204.16 {\ul effective for aid payable in 2004 and thereafter.} \n\line 204.17 {\ul (c) Minnesota Rules, parts 8106.0100, subparts 11, 15, and} \n\line 204.18 {\ul 16; and 8106.0200, are repealed effective the day following} \n\line 204.19 {\ul final enactment.} \n\line 204.20 ARTICLE 9 \n\line 204.21 DEPARTMENT SALES AND USE TAX INITIATIVES \n\line 204.22 Section 1. Minnesota Statutes 2002, section 289A.50, \n\line 204.23 subdivision 2a, is amended to read: \n\line 204.24 Subd. 2a. [REFUND OF SALES TAX TO PURCHASERS.] {\ul (a)} If a \n\line 204.25 vendor has collected from a purchaser a tax on a transaction \n\line 204.26 that is not subject to the tax imposed by chapter 297A, the \n\line 204.27 purchaser may apply directly to the commissioner for a refund \n\line 204.28 under this section if: \n\line 204.29 {\strike (a)} {\ul (1)} the purchaser is currently registered {\ul or was} \n\line 204.30 {\ul registered during the period of the claim,} to collect and remit \n\line 204.31 the sales tax or to remit the use tax; and \n\line 204.32 {\ul (2) either} \n\line 204.33 {\strike (b)} {\ul (i)} the amount of the refund {\ul to be} applied for exceeds \n\line 204.34 $500{\ul , or} \n\line 204.35 {\ul (ii) the amount of the refund to be applied for does not} \n\line 204.36 {\ul exceed $500, but the purchaser also applies for a capital} \n\line 205.1 {\ul equipment claim at the same time, and the total of the two} \n\line 205.2 {\ul refunds exceeds $500}. \n\line 205.3 {\ul (b)} The purchaser may not file more than two applications \n\line 205.4 for refund under this subdivision in a calendar year. \n\line 205.5 [EFFECTIVE DATE.] {\ul This section is effective for claims} \n\line 205.6 {\ul filed on or after the day following final enactment.} \n\line 205.7 Sec. 2. Minnesota Statutes 2002, section 289A.60, is \n\line 205.8 amended by adding a subdivision to read: \n\line 205.9 {\ul Subd. 25.} [PENALTY FOR FAILURE TO PROPERLY COMPLETE SALES \n\line 205.10 TAX RETURN.] {\ul A person who fails to report local sales tax on a} \n\line 205.11 {\ul sales tax return or who fails to report local sales tax on} \n\line 205.12 {\ul separate tax lines on the sales tax return is subject to a} \n\line 205.13 {\ul penalty of five percent of the amount of tax not properly} \n\line 205.14 {\ul reported on the return. A person who files a consolidated tax} \n\line 205.15 {\ul return but fails to report location information is subject to a} \n\line 205.16 {\ul $500 penalty for each return not containing location} \n\line 205.17 {\ul information. In addition, the commissioner may revoke the} \n\line 205.18 {\ul privilege for a taxpayer to file consolidated returns and may} \n\line 205.19 {\ul require the taxpayer to separately register each location and to} \n\line 205.20 {\ul file a tax return for each location.} \n\line 205.21 [EFFECTIVE DATE.] {\ul This section is effective for returns} \n\line 205.22 {\ul filed after June 30, 2003.} \n\line 205.23 Sec. 3. Minnesota Statutes 2002, section 297A.61, \n\line 205.24 subdivision 3, is amended to read: \n\line 205.25 Subd. 3. [SALE AND PURCHASE.] (a) "Sale" and "purchase" \n\line 205.26 include, but are not limited to, each of the transactions listed \n\line 205.27 in this subdivision. \n\line 205.28 (b) Sale and purchase include: \n\line 205.29 (1) any transfer of title or possession, or both, of \n\line 205.30 tangible personal property, whether absolutely or conditionally, \n\line 205.31 for a consideration in money or by exchange or barter; and \n\line 205.32 (2) the leasing of or the granting of a license to use or \n\line 205.33 consume, for a consideration in money or by exchange or barter, \n\line 205.34 tangible personal property, other than a manufactured home used \n\line 205.35 for residential purposes for a continuous period of 30 days or \n\line 205.36 more. \n\line 206.1 (c) Sale and purchase include the production, fabrication, \n\line 206.2 printing, or processing of tangible personal property for a \n\line 206.3 consideration for consumers who furnish either directly or \n\line 206.4 indirectly the materials used in the production, fabrication, \n\line 206.5 printing, or processing. \n\line 206.6 (d) Sale and purchase include the preparing for a \n\line 206.7 consideration of food. Notwithstanding section 297A.67, \n\line 206.8 subdivision 2, taxable food includes, but is not limited to, the \n\line 206.9 following: \n\line 206.10 (1) prepared food sold by the retailer; \n\line 206.11 (2) soft drinks; \n\line 206.12 (3) candy; and \n\line 206.13 (4) all food sold through vending machines. \n\line 206.14 (e) A sale and a purchase includes the furnishing for a \n\line 206.15 consideration of electricity, gas, water, or steam for use or \n\line 206.16 consumption within this state. \n\line 206.17 (f) A sale and a purchase includes the transfer for a \n\line 206.18 consideration of computer software. \n\line 206.19 (g) A sale and a purchase includes the furnishing for a \n\line 206.20 consideration of the following services: \n\line 206.21 (1) the privilege of admission to places of amusement, \n\line 206.22 recreational areas, or athletic events, and the making available \n\line 206.23 of amusement devices, tanning facilities, reducing salons, steam \n\line 206.24 baths, turkish baths, health clubs, and spas or athletic \n\line 206.25 facilities; \n\line 206.26 (2) lodging and related services by a hotel, rooming house, \n\line 206.27 resort, campground, motel, or trailer camp and the granting of \n\line 206.28 any similar license to use real property other than the renting \n\line 206.29 or leasing of it for a continuous period of 30 days or more; \n\line 206.30 (3) {\ul nonresidential} parking services, whether on a \n\line 206.31 contractual, hourly, or other periodic basis, except for parking \n\line 206.32 at a meter; \n\line 206.33 (4) the granting of membership in a club, association, or \n\line 206.34 other organization if: \n\line 206.35 (i) the club, association, or other organization makes \n\line 206.36 available for the use of its members sports and athletic \n\line 207.1 facilities, without regard to whether a separate charge is \n\line 207.2 assessed for use of the facilities; and \n\line 207.3 (ii) use of the sports and athletic facility is not made \n\line 207.4 available to the general public on the same basis as it is made \n\line 207.5 available to members. \n\line 207.6 Granting of membership means both onetime initiation fees and \n\line 207.7 periodic membership dues. Sports and athletic facilities \n\line 207.8 include golf courses; tennis, racquetball, handball, and squash \n\line 207.9 courts; basketball and volleyball facilities; running tracks; \n\line 207.10 exercise equipment; swimming pools; and other similar athletic \n\line 207.11 or sports facilities; \n\line 207.12 (5) delivery of aggregate materials and concrete block by a \n\line 207.13 third party if the delivery would be subject to the sales tax if \n\line 207.14 provided by the seller of the aggregate material or concrete \n\line 207.15 block; and \n\line 207.16 (6) services as provided in this clause: \n\line 207.17 (i) laundry and dry cleaning services including cleaning, \n\line 207.18 pressing, repairing, altering, and storing clothes, linen \n\line 207.19 services and supply, cleaning and blocking hats, and carpet, \n\line 207.20 drapery, upholstery, and industrial cleaning. Laundry and dry \n\line 207.21 cleaning services do not include services provided by coin \n\line 207.22 operated facilities operated by the customer; \n\line 207.23 (ii) motor vehicle washing, waxing, and cleaning services, \n\line 207.24 including services provided by coin operated facilities operated \n\line 207.25 by the customer, and rustproofing, undercoating, and towing of \n\line 207.26 motor vehicles; \n\line 207.27 (iii) building and residential cleaning, maintenance, and \n\line 207.28 disinfecting and exterminating services; \n\line 207.29 (iv) detective, security, burglar, fire alarm, and armored \n\line 207.30 car services; but not including services performed within the \n\line 207.31 jurisdiction they serve by off-duty licensed peace officers as \n\line 207.32 defined in section 626.84, subdivision 1, or services provided \n\line 207.33 by a nonprofit organization for monitoring and electronic \n\line 207.34 surveillance of persons placed on in-home detention pursuant to \n\line 207.35 court order or under the direction of the Minnesota department \n\line 207.36 of corrections; \n\line 208.1 (v) pet grooming services; \n\line 208.2 (vi) lawn care, fertilizing, mowing, spraying and sprigging \n\line 208.3 services; garden planting and maintenance; tree, bush, and shrub \n\line 208.4 pruning, bracing, spraying, and surgery; indoor plant care; \n\line 208.5 tree, bush, shrub, and stump removal; and tree trimming for \n\line 208.6 public utility lines. Services performed under a construction \n\line 208.7 contract for the installation of shrubbery, plants, sod, trees, \n\line 208.8 bushes, and similar items are not taxable; \n\line 208.9 (vii) massages, except when provided by a licensed health \n\line 208.10 care facility or professional or upon written referral from a \n\line 208.11 licensed health care facility or professional for treatment of \n\line 208.12 illness, injury, or disease; and \n\line 208.13 (viii) the furnishing of lodging, board, and care services \n\line 208.14 for animals in kennels and other similar arrangements, but \n\line 208.15 excluding veterinary and horse boarding services. \n\line 208.16 In applying the provisions of this chapter, the terms \n\line 208.17 "tangible personal property" and "sales at retail" include \n\line 208.18 taxable services {\ul listed in clause (6), items (i) to (vi) and} \n\line 208.19 {\ul (viii)} and the provision of {\ul these} taxable services, unless \n\line 208.20 specifically provided otherwise. Services performed by an \n\line 208.21 employee for an employer are not taxable. Services performed by \n\line 208.22 a partnership or association for another partnership or \n\line 208.23 association are not taxable if one of the entities owns or \n\line 208.24 controls more than 80 percent of the voting power of the equity \n\line 208.25 interest in the other entity. Services performed between \n\line 208.26 members of an affiliated group of corporations are not taxable. \n\line 208.27 For purposes of {\strike this section} {\ul the preceding sentence}, "affiliated \n\line 208.28 group of corporations" includes those entities that would be \n\line 208.29 classified as members of an affiliated group under United States \n\line 208.30 Code, title 26, section 1504, and that are eligible to file a \n\line 208.31 consolidated tax return for federal income tax purposes. \n\line 208.32 (h) A sale and a purchase includes the furnishing for a \n\line 208.33 consideration of tangible personal property or taxable services \n\line 208.34 by the United States or any of its agencies or \n\line 208.35 instrumentalities, or the state of Minnesota, its agencies, \n\line 208.36 instrumentalities, or political subdivisions. \n\line 209.1 (i) A sale and a purchase includes the furnishing for a \n\line 209.2 consideration of telecommunications services, including cable \n\line 209.3 television services and direct satellite services. \n\line 209.4 Telecommunications services are taxed to the extent allowed \n\line 209.5 under federal law if those services: \n\line 209.6 (1) either (i) originate and terminate in this state; or \n\line 209.7 (ii) originate in this state and terminate outside the state and \n\line 209.8 the service is charged to a {\strike telephone number} {\ul telecommunications} \n\line 209.9 customer located in this state or to the account of any \n\line 209.10 transmission instrument in this state; or (iii) originate \n\line 209.11 outside this state and terminate in this state and the service \n\line 209.12 is charged to a {\strike telephone number} {\ul telecommunications} customer \n\line 209.13 located in this state or to the account of any transmission \n\line 209.14 instrument in this state; or \n\line 209.15 (2) are rendered by providing a private communications \n\line 209.16 service for which the customer has one or more locations within \n\line 209.17 Minnesota connected to the service and the service is charged to \n\line 209.18 a {\strike telephone number} {\ul telecommunications} customer located in this \n\line 209.19 state or to the account of any transmission instrument in this \n\line 209.20 state. \n\line 209.21 All charges for mobile telecommunications services, as \n\line 209.22 defined in United States Code, title 4, section 124, are deemed \n\line 209.23 to be provided by the customer's home service provider and \n\line 209.24 sourced to the customer's place of primary use and are subject \n\line 209.25 to tax based upon the customer's place of primary use in \n\line 209.26 accordance with the Mobile Telecommunications Sourcing Act, \n\line 209.27 United States Code, title 4, sections 116 to 126. All other \n\line 209.28 definitions and provisions of the Mobile Telecommunications \n\line 209.29 Sourcing Act as provided in United States Code, title 4, are \n\line 209.30 hereby adopted. \n\line 209.31 (j) A sale and a purchase includes the furnishing for a \n\line 209.32 consideration of installation if the installation charges would \n\line 209.33 be subject to the sales tax if the installation were provided by \n\line 209.34 the seller of the item being installed. \n\line 209.35 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 209.36 {\ul following final enactment.} \n\line 210.1 Sec. 4. Minnesota Statutes 2002, section 297A.61, \n\line 210.2 subdivision 12, is amended to read: \n\line 210.3 Subd. 12. [FARM MACHINERY.] (a) "Farm machinery" means new \n\line 210.4 or used machinery, equipment, implements, accessories, and \n\line 210.5 contrivances used directly and principally in {\strike the} {\ul agricultural} \n\line 210.6 production {\strike for sale, but not including the processing, of} \n\line 210.7 {\strike livestock, dairy animals, dairy products, poultry and poultry} \n\line 210.8 {\strike products, fruits, vegetables, trees and shrubs, plants, forage,} \n\line 210.9 {\strike grains, and bees and apiary products.} \n\line 210.10 {\strike (b) Farm machinery includes} {\ul including, but not limited to}: \n\line 210.11 (1) machinery for the preparation, seeding, or cultivation \n\line 210.12 of soil for growing agricultural crops {\strike and sod, for the} \n\line 210.13 {\strike harvesting and threshing of agricultural products, or for the} \n\line 210.14 {\strike harvesting or mowing of sod}; \n\line 210.15 (2) barn cleaners, milking systems, grain dryers, feeding \n\line 210.16 systems including stationary feed bunks, and similar \n\line 210.17 installations, whether or not the equipment is installed by the \n\line 210.18 seller and becomes part of the real property; {\ul and} \n\line 210.19 (3) irrigation equipment sold for exclusively agricultural \n\line 210.20 use, including pumps, pipe fittings, valves, sprinklers, and \n\line 210.21 other equipment necessary to the operation of an irrigation \n\line 210.22 system when sold as part of an irrigation system, whether or not \n\line 210.23 the equipment is installed by the seller and becomes part of the \n\line 210.24 real property{\strike ;}{\ul .} \n\line 210.25 {\strike (4) logging equipment, including chain saws used for} \n\line 210.26 {\strike commercial logging;} \n\line 210.27 {\strike (5) fencing used for the containment of farmed cervidae, as} \n\line 210.28 {\strike defined in section 17.451, subdivision 2;} \n\line 210.29 {\strike (6) primary and backup generator units used to generate} \n\line 210.30 {\strike electricity for the purpose of operating farm machinery, as} \n\line 210.31 {\strike defined in this subdivision, or providing light or space heating} \n\line 210.32 {\strike necessary for the production of livestock, dairy animals, dairy} \n\line 210.33 {\strike products, or poultry and poultry products;} \n\line 210.34 {\strike (7) aquaculture production equipment as defined in} \n\line 210.35 {\strike subdivision 13; and} \n\line 210.36 {\strike (8) equipment used for maple syrup harvesting.} \n\line 211.1 {\strike (c)} {\ul (b)} Farm machinery does not include: \n\line 211.2 (1) repair or replacement parts; \n\line 211.3 (2) tools, shop equipment, grain bins, fencing material \n\line 211.4 {\strike except fencing material covered by paragraph (b), clause (5)}, \n\line 211.5 communication equipment, and other farm supplies; \n\line 211.6 (3) motor vehicles taxed under chapter 297B; \n\line 211.7 (4) snowmobiles or snow blowers; {\strike or} \n\line 211.8 (5) lawn mowers except those used in the production of sod \n\line 211.9 for sale, or garden-type tractors or garden tillers{\ul ; or} \n\line 211.10 {\ul (6) machinery, equipment, implements, accessories, and} \n\line 211.11 {\ul contrivances used directly in the production of horses not} \n\line 211.12 {\ul raised for slaughter, fur-bearing animals, or research animals}. \n\line 211.13 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 211.14 {\ul purchases made after June 30, 2003.} \n\line 211.15 Sec. 5. Minnesota Statutes 2002, section 297A.61, \n\line 211.16 subdivision 34, is amended to read: \n\line 211.17 Subd. 34. [FOOD SOLD THROUGH VENDING MACHINES.] "Food sold \n\line 211.18 through vending machines" means food dispensed from a machine or \n\line 211.19 other {\strike mechanical} device that accepts payment {\ul including honor} \n\line 211.20 {\ul payments}. \n\line 211.21 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 211.22 {\ul purchases made on or after the day following final enactment.} \n\line 211.23 Sec. 6. Minnesota Statutes 2002, section 297A.61, is \n\line 211.24 amended by adding a subdivision to read: \n\line 211.25 {\ul Subd. 35.} [AGRICULTURAL PRODUCTION.] {\ul "Agricultural} \n\line 211.26 {\ul production" includes, but is not limited to, horticulture,} \n\line 211.27 {\ul floriculture, maple syrup harvesting, and the raising of pets,} \n\line 211.28 {\ul livestock as defined in section 17A.03, subdivision 5, poultry,} \n\line 211.29 {\ul dairy and poultry products, bees and apiary products, the} \n\line 211.30 {\ul raising and harvesting of agricultural crops, sod, fur-bearing} \n\line 211.31 {\ul animals, research animals, and horses.} \n\line 211.32 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 211.33 {\ul purchases made after June 30, 2003.} \n\line 211.34 Sec. 7. Minnesota Statutes 2002, section 297A.665, is \n\line 211.35 amended to read: \n\line 211.36 297A.665 [PRESUMPTION OF TAX; BURDEN OF PROOF.] \n\line 212.1 (a) For the purpose of the proper administration of this \n\line 212.2 chapter and to prevent evasion of the tax, until the contrary is \n\line 212.3 established, it is presumed that: \n\line 212.4 (1) all gross receipts are subject to the tax; and \n\line 212.5 (2) all retail sales for delivery in Minnesota are for \n\line 212.6 storage, use, or other consumption in Minnesota. \n\line 212.7 (b) The burden of proving that a sale is not a {\ul taxable} \n\line 212.8 retail sale is on the seller. However, the seller may take from \n\line 212.9 the purchaser at the time of the sale {\strike an} {\ul a fully completed} \n\line 212.10 exemption certificate {\strike claiming that the property purchased is} \n\line 212.11 {\strike for resale or that the sale is otherwise exempt from the tax} \n\line 212.12 {\strike imposed by this chapter} {\ul which conclusively relieves the seller} \n\line 212.13 {\ul from collecting and remitting the tax. This relief from} \n\line 212.14 {\ul liability does not apply to a seller who fraudulently fails to} \n\line 212.15 {\ul collect the tax or solicits purchasers to participate in the} \n\line 212.16 {\ul unlawful claim of an exemption}. {\ul If} a seller claiming that \n\line 212.17 certain sales are exempt{\strike , who does} {\ul is} not {\strike possess} {\ul in possession} \n\line 212.18 {\ul of} the required exemption certificates{\strike , must acquire the} \n\line 212.19 {\strike certificates} within 60 days after receiving written notice from \n\line 212.20 the commissioner that the certificates are required{\ul , deductions} \n\line 212.21 {\ul claimed by the seller that required delivery of the certificates} \n\line 212.22 {\ul must be disallowed}. If the certificates are {\strike not} \n\line 212.23 {\strike obtained} {\ul delivered to the commissioner} within the 60-day period, \n\line 212.24 the {\strike sales are considered taxable sales under this} \n\line 212.25 {\strike chapter.} {\ul commissioner may verify the reason or basis for the} \n\line 212.26 {\ul exemption claimed in the certificates before allowing any} \n\line 212.27 {\ul deductions. A deduction must not be granted on the basis of} \n\line 212.28 {\ul certificates delivered to the commissioner after the 60-day} \n\line 212.29 {\ul period.} \n\line 212.30 (c) A purchaser of tangible personal property or any items \n\line 212.31 listed in section 297A.63 that are shipped or brought to \n\line 212.32 Minnesota by the purchaser has the burden of proving that the \n\line 212.33 property was not purchased from a retailer for storage, use, or \n\line 212.34 consumption in Minnesota. \n\line 212.35 [EFFECTIVE DATE.] {\ul This section is effective for exemption} \n\line 212.36 {\ul certificates received for sales occurring after June 30, 2003.} \n\line 213.1 Sec. 8. Minnesota Statutes 2002, section 297A.67, \n\line 213.2 subdivision 2, is amended to read: \n\line 213.3 Subd. 2. [FOOD AND FOOD INGREDIENTS.] Food and food \n\line 213.4 ingredients are exempt. For purposes of this subdivision, \n\line 213.5 "food" and "food ingredients" mean substances, whether in \n\line 213.6 liquid, concentrated, solid, frozen, dried, or dehydrated form, \n\line 213.7 that are sold for ingestion or chewing by humans and are \n\line 213.8 consumed for their taste or nutritional value. Food and food \n\line 213.9 ingredients {\ul exempt under this subdivision} do not include candy, \n\line 213.10 soft drinks, food sold through vending machines, and prepared \n\line 213.11 foods. Food and food ingredients do not include alcoholic \n\line 213.12 beverages, dietary supplements, and tobacco. For purposes of \n\line 213.13 this subdivision, "alcoholic beverages" means beverages that are \n\line 213.14 suitable for human consumption and contain one-half of one \n\line 213.15 percent or more of alcohol by volume. For purposes of this \n\line 213.16 subdivision, "tobacco" means cigarettes, cigars, chewing or pipe \n\line 213.17 tobacco, or any other item that contains tobacco. For purposes \n\line 213.18 of this subdivision, "dietary supplements" means any product, \n\line 213.19 other than tobacco, intended to supplement the diet that: \n\line 213.20 (1) contains one or more of the following dietary \n\line 213.21 ingredients: \n\line 213.22 (i) a vitamin; \n\line 213.23 (ii) a mineral; \n\line 213.24 (iii) an herb or other botanical; \n\line 213.25 (iv) an amino acid; \n\line 213.26 (v) a dietary substance for use by humans to supplement the \n\line 213.27 diet by increasing the total dietary intake; and \n\line 213.28 (vi) a concentrate, metabolite, constituent, extract, or \n\line 213.29 combination of any ingredient described in items (i) to (v); \n\line 213.30 (2) is intended for ingestion in tablet, capsule, powder, \n\line 213.31 softgel, gelcap, or liquid form, or if not intended for \n\line 213.32 ingestion in such form, is not represented as conventional food \n\line 213.33 and is not represented for use as a sole item of a meal or of \n\line 213.34 the diet; and \n\line 213.35 (3) is required to be labeled as a dietary supplement, \n\line 213.36 identifiable by the supplement facts box found on the label and \n\line 214.1 as required pursuant to Code of Federal Regulations, title 21, \n\line 214.2 section 101.36. \n\line 214.3 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 214.4 {\ul following final enactment.} \n\line 214.5 Sec. 9. Minnesota Statutes 2002, section 297A.68, \n\line 214.6 subdivision 5, is amended to read: \n\line 214.7 Subd. 5. [CAPITAL EQUIPMENT.] (a) Capital equipment is \n\line 214.8 exempt. The tax must be imposed and collected as if the rate \n\line 214.9 under section 297A.62, subdivision 1, applied, and then refunded \n\line 214.10 in the manner provided in section 297A.75. \n\line 214.11 "Capital equipment" means machinery and equipment purchased \n\line 214.12 or leased, and used in this state by the purchaser or lessee \n\line 214.13 primarily for manufacturing, fabricating, mining, or refining \n\line 214.14 tangible personal property to be sold ultimately at retail if \n\line 214.15 the machinery and equipment are essential to the integrated \n\line 214.16 production process of manufacturing, fabricating, mining, or \n\line 214.17 refining. Capital equipment also includes machinery and \n\line 214.18 equipment used to electronically transmit results retrieved by a \n\line 214.19 customer of an online computerized data retrieval system. \n\line 214.20 (b) Capital equipment includes, but is not limited to: \n\line 214.21 (1) machinery and equipment used to operate, control, or \n\line 214.22 regulate the production equipment; \n\line 214.23 (2) machinery and equipment used for research and \n\line 214.24 development, design, quality control, and testing activities; \n\line 214.25 (3) environmental control devices that are used to maintain \n\line 214.26 conditions such as temperature, humidity, light, or air pressure \n\line 214.27 when those conditions are essential to and are part of the \n\line 214.28 production process; \n\line 214.29 (4) materials and supplies used to construct and install \n\line 214.30 machinery or equipment; \n\line 214.31 (5) repair and replacement parts, including accessories, \n\line 214.32 whether purchased as spare parts, repair parts, or as upgrades \n\line 214.33 or modifications to machinery or equipment; \n\line 214.34 (6) materials used for foundations that support machinery \n\line 214.35 or equipment; \n\line 214.36 (7) materials used to construct and install special purpose \n\line 215.1 buildings used in the production process; and \n\line 215.2 (8) ready-mixed concrete {\strike trucks} {\ul equipment} in which the \n\line 215.3 ready-mixed concrete is mixed as part of the delivery \n\line 215.4 process {\ul regardless if mounted on a chassis and leases of} \n\line 215.5 {\ul ready-mixed concrete trucks}. \n\line 215.6 (c) Capital equipment does not include the following: \n\line 215.7 (1) motor vehicles taxed under chapter 297B; \n\line 215.8 (2) machinery or equipment used to receive or store raw \n\line 215.9 materials; \n\line 215.10 (3) building materials, except for materials included in \n\line 215.11 paragraph (b), clauses (6) and (7); \n\line 215.12 (4) machinery or equipment used for nonproduction purposes, \n\line 215.13 including, but not limited to, the following: plant security, \n\line 215.14 fire prevention, first aid, and hospital stations; support \n\line 215.15 operations or administration; pollution control; and plant \n\line 215.16 cleaning, disposal of scrap and waste, plant communications, \n\line 215.17 space heating, cooling, lighting, or safety; \n\line 215.18 (5) farm machinery and aquaculture production equipment as \n\line 215.19 defined by section 297A.61, subdivisions 12 and 13; \n\line 215.20 (6) machinery or equipment purchased and installed by a \n\line 215.21 contractor as part of an improvement to real property; or \n\line 215.22 (7) any other item that is not essential to the integrated \n\line 215.23 process of manufacturing, fabricating, mining, or refining. \n\line 215.24 (d) For purposes of this subdivision: \n\line 215.25 (1) "Equipment" means independent devices or tools separate \n\line 215.26 from machinery but essential to an integrated production \n\line 215.27 process, including computers and computer software, used in \n\line 215.28 operating, controlling, or regulating machinery and equipment; \n\line 215.29 and any subunit or assembly comprising a component of any \n\line 215.30 machinery or accessory or attachment parts of machinery, such as \n\line 215.31 tools, dies, jigs, patterns, and molds. \n\line 215.32 (2) "Fabricating" means to make, build, create, produce, or \n\line 215.33 assemble components or property to work in a new or different \n\line 215.34 manner. \n\line 215.35 (3) {\ul "Integrated production process" means a process or} \n\line 215.36 {\ul series of operations through which tangible personal property is} \n\line 216.1 {\ul manufactured, fabricated, mined, or refined. For purposes of} \n\line 216.2 {\ul this clause, (i) manufacturing begins with the removal of raw} \n\line 216.3 {\ul materials from inventory and ends when the last process prior to} \n\line 216.4 {\ul loading for shipment has been completed; (ii) fabricating begins} \n\line 216.5 {\ul with the removal from storage or inventory of the property to be} \n\line 216.6 {\ul assembled, processed, altered, or modified and ends with the} \n\line 216.7 {\ul creation or production of the new or changed product; (iii)} \n\line 216.8 {\ul mining begins with the removal of overburden from the site of} \n\line 216.9 {\ul the ores, minerals, stone, peat deposit, or surface materials} \n\line 216.10 {\ul and ends when the last process before stockpiling is completed;} \n\line 216.11 {\ul and (iv) refining begins with the removal from inventory or} \n\line 216.12 {\ul storage of a natural resource and ends with the conversion of} \n\line 216.13 {\ul the item to its completed form.} \n\line 216.14 {\ul (4)} "Machinery" means mechanical, electronic, or electrical \n\line 216.15 devices, including computers and computer software, that are \n\line 216.16 purchased or constructed to be used for the activities set forth \n\line 216.17 in paragraph (a), beginning with the removal of raw materials \n\line 216.18 from inventory through completion of the product, including \n\line 216.19 packaging of the product. \n\line 216.20 {\strike (4)} {\ul (5)} "Machinery and equipment used for pollution control"\n\line 216.21 means machinery and equipment used solely to eliminate, prevent, \n\line 216.22 or reduce pollution resulting from an activity described in \n\line 216.23 paragraph (a). \n\line 216.24 {\strike (5)} {\ul (6)} "Manufacturing" means an operation or series of \n\line 216.25 operations where raw materials are changed in form, composition, \n\line 216.26 or condition by machinery and equipment and which results in the \n\line 216.27 production of a new article of tangible personal property. For \n\line 216.28 purposes of this subdivision, "manufacturing" includes the \n\line 216.29 generation of electricity or steam to be sold at retail. \n\line 216.30 {\strike (6)} {\ul (7)} "Mining" means the extraction of minerals, ores, \n\line 216.31 stone, or peat. \n\line 216.32 {\strike (7)} {\ul (8)} "Online data retrieval system" means a system whose \n\line 216.33 cumulation of information is equally available and accessible to \n\line 216.34 all its customers. \n\line 216.35 {\strike (8)} {\ul (9)} "Primarily" means machinery and equipment used 50 \n\line 216.36 percent or more of the time in an activity described in \n\line 217.1 paragraph (a). \n\line 217.2 {\strike (9)} {\ul (10)} "Refining" means the process of converting a \n\line 217.3 natural resource to {\strike a} {\ul an intermediate or finished} product, \n\line 217.4 including the treatment of water to be sold at retail. \n\line 217.5 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 217.6 {\ul purchases made after December 31, 2003.} \n\line 217.7 Sec. 10. Minnesota Statutes 2002, section 297A.68, is \n\line 217.8 amended by adding a subdivision to read: \n\line 217.9 {\ul Subd. 39.} [PREEXISTING BIDS OR CONTRACTS.] {\ul (a) The sale of} \n\line 217.10 {\ul tangible personal property or services is exempt from tax for a} \n\line 217.11 {\ul period of six months from the effective date of the law change} \n\line 217.12 {\ul that results in the imposition of the tax under this chapter if:} \n\line 217.13 {\ul (1) the act imposing the tax does not have transitional} \n\line 217.14 {\ul effective date language for existing construction contracts and} \n\line 217.15 {\ul construction bids; and} \n\line 217.16 {\ul (2) the requirements of paragraph (b) are met.} \n\line 217.17 {\ul (b) A sale is tax exempt under paragraph (a) if it meets} \n\line 217.18 {\ul the requirements of either clause (1) or (2):} \n\line 217.19 {\ul (1) For a construction contract:} \n\line 217.20 {\ul (i) the goods or services sold must be used for the} \n\line 217.21 {\ul performance of a bona fide written lump sum or fixed price} \n\line 217.22 {\ul construction contract;} \n\line 217.23 {\ul (ii) the contract must be entered into before the date the} \n\line 217.24 {\ul goods or services become subject to the sales tax;} \n\line 217.25 {\ul (iii) the contract must not provide for allocation of} \n\line 217.26 {\ul future taxes; and} \n\line 217.27 {\ul (iv) for each qualifying contract the contractor must give} \n\line 217.28 {\ul the seller documentation of the contract on which an exemption} \n\line 217.29 {\ul is to be claimed.} \n\line 217.30 {\ul (2) For a bid:} \n\line 217.31 {\ul (i) the goods or services sold must be used pursuant to an} \n\line 217.32 {\ul obligation of a bid or bids;} \n\line 217.33 {\ul (ii) the bid or bids must be submitted and accepted before} \n\line 217.34 {\ul the date the goods or services became subject to the sales tax;} \n\line 217.35 {\ul (iii) the bid or bids must not be able to be withdrawn,} \n\line 217.36 {\ul modified, or changed without forfeiting a bond; and} \n\line 218.1 {\ul (iv) for each qualifying bid, the contractor must give the} \n\line 218.2 {\ul seller documentation of the bid on which an exemption is to be} \n\line 218.3 {\ul claimed.} \n\line 218.4 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 218.5 {\ul following final enactment.} \n\line 218.6 Sec. 11. Minnesota Statutes 2002, section 297A.69, \n\line 218.7 subdivision 2, is amended to read: \n\line 218.8 Subd. 2. [MATERIALS CONSUMED IN AGRICULTURAL PRODUCTION.] \n\line 218.9 {\strike (a)} Materials stored, used, or consumed in agricultural \n\line 218.10 production of personal property intended to be sold ultimately \n\line 218.11 at retail are exempt, whether or not the item becomes an \n\line 218.12 ingredient or constituent part of the property produced. \n\line 218.13 Materials that qualify for this exemption include, but are not \n\line 218.14 limited to, the following: \n\line 218.15 (1) feeds, seeds, trees, fertilizers, and herbicides, \n\line 218.16 including when purchased for use by farmers in a federal or \n\line 218.17 state farm or conservation program; \n\line 218.18 (2) materials sold to a veterinarian to be used or consumed \n\line 218.19 in the care, medication, and treatment of agricultural \n\line 218.20 production animals and horses; \n\line 218.21 (3) chemicals, including chemicals used for cleaning food \n\line 218.22 processing machinery and equipment; \n\line 218.23 (4) materials, including chemicals, fuels, and electricity \n\line 218.24 purchased by persons engaged in agricultural production to treat \n\line 218.25 waste generated as a result of the production process; \n\line 218.26 (5) fuels, electricity, gas, and steam used or consumed in \n\line 218.27 the production process, except that electricity, gas, or steam \n\line 218.28 used for space heating, cooling, or lighting is exempt if (i) it \n\line 218.29 is in excess of the average climate control or lighting for the \n\line 218.30 production area, and (ii) it is necessary to produce that \n\line 218.31 particular product; \n\line 218.32 (6) petroleum products and lubricants; \n\line 218.33 (7) packaging materials, including returnable containers \n\line 218.34 used in packaging food and beverage products; and \n\line 218.35 (8) accessory tools and equipment that are separate \n\line 218.36 detachable units with an ordinary useful life of less than 12 \n\line 219.1 months used in producing a direct effect upon the product. \n\line 219.2 Machinery, equipment, implements, tools, accessories, \n\line 219.3 appliances, contrivances, and furniture and fixtures, except \n\line 219.4 those listed in this clause are not included within this \n\line 219.5 exemption. \n\line 219.6 {\strike (b) For purposes of this subdivision, "agricultural} \n\line 219.7 {\strike production" includes, but is not limited to, horticulture,} \n\line 219.8 {\strike floriculture, maple syrup harvesting, and the raising of pets,} \n\line 219.9 {\strike fur-bearing animals, research animals, horses, farmed cervidae} \n\line 219.10 {\strike as defined in section 17.451, subdivision 2, llamas as defined} \n\line 219.11 {\strike in section 17.455, subdivision 2, and ratitae as defined in} \n\line 219.12 {\strike section 17.453, subdivision 3.} \n\line 219.13 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 219.14 {\ul purchases made after December 31, 2003.} \n\line 219.15 Sec. 12. Minnesota Statutes 2002, section 297A.69, \n\line 219.16 subdivision 3, is amended to read: \n\line 219.17 Subd. 3. [{\strike FARM MACHINERY} REPAIR {\ul AND REPLACEMENT} PARTS.] \n\line 219.18 Repair and replacement parts, except tires, used for maintenance \n\line 219.19 or repair of farm machinery{\ul , logging equipment, and aquaculture} \n\line 219.20 {\ul production equipment} are exempt, if the part replaces a {\strike farm} \n\line 219.21 machinery part assigned a specific or generic part number by the \n\line 219.22 manufacturer of the {\strike farm} machinery. \n\line 219.23 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 219.24 {\ul purchases made after June 30, 2003.} \n\line 219.25 Sec. 13. Minnesota Statutes 2002, section 297A.69, \n\line 219.26 subdivision 4, is amended to read: \n\line 219.27 Subd. 4. [{\strike FARM} MACHINERY{\ul , EQUIPMENT, AND FENCING}.] {\ul The} \n\line 219.28 {\ul following machinery, equipment, and fencing is exempt:} \n\line 219.29 {\ul (1)} farm machinery {\strike is exempt.}{\ul ;} \n\line 219.30 {\ul (2) logging equipment, including chain saws used for} \n\line 219.31 {\ul commercial logging;} \n\line 219.32 {\ul (3) fencing used for the containment of farmed cervidae, as} \n\line 219.33 {\ul defined in section 17.451, subdivision 2;} \n\line 219.34 {\ul (4) primary and backup generator units used to generate} \n\line 219.35 {\ul electricity for the purpose of operating farm machinery,} \n\line 219.36 {\ul aquacultural production equipment, or logging equipment, or} \n\line 220.1 {\ul providing light or space heating necessary for the production of} \n\line 220.2 {\ul livestock, dairy animals, dairy products, or poultry and poultry} \n\line 220.3 {\ul products; and} \n\line 220.4 {\ul (5) aquaculture production equipment.} \n\line 220.5 [EFFECTIVE DATE.] {\ul This section is effective for sales and} \n\line 220.6 {\ul purchases made after June 30, 2003.} \n\line 220.7 Sec. 14. Minnesota Statutes 2002, section 297B.025, \n\line 220.8 subdivision 1, is amended to read: \n\line 220.9 Subdivision 1. [NONCOLLECTOR VEHICLE.] Purchase or use of \n\line 220.10 a passenger automobile as defined in section 168.011, \n\line 220.11 subdivision 7, shall be taxed pursuant to section 297B.02, \n\line 220.12 subdivision 2, if the passenger automobile {\strike is} (1) {\ul is} in the \n\line 220.13 tenth or subsequent year of vehicle life, and (2) {\strike is not an} \n\line 220.14 {\strike above-market automobile as designated by the registrar of motor} \n\line 220.15 {\strike vehicles} {\ul does not have a resale value of $3,000 or more, as} \n\line 220.16 {\ul determined using nationally recognized sources of information on} \n\line 220.17 {\ul automobile resale values, as designated by the registrar of} \n\line 220.18 {\ul motor vehicles}. \n\line 220.19 {\strike The registrar of motor vehicles shall prepare, and} \n\line 220.20 {\strike distribute to all deputy motor vehicle registrars by July 15,} \n\line 220.21 {\strike 1985, a listing by make, model, and year of above-market} \n\line 220.22 {\strike automobiles. Except as provided by subdivision 2, the registrar} \n\line 220.23 {\strike must include in the list all automobiles with a resale value of} \n\line 220.24 {\strike $3,000 or more, as determined using nationally recognized} \n\line 220.25 {\strike sources of information on automobile resale values. The} \n\line 220.26 {\strike registrar shall revise the list by February 1 of each year. The} \n\line 220.27 {\strike initial list and all subsequent revisions must include only} \n\line 220.28 {\strike those automobiles which are in the tenth or subsequent year of} \n\line 220.29 {\strike vehicle life.} \n\line 220.30 [EFFECTIVE DATE.] {\ul This section is effective for vehicles} \n\line 220.31 {\ul purchased after June 30, 2003.} \n\line 220.32 Sec. 15. Minnesota Statutes 2002, section 297B.025, \n\line 220.33 subdivision 2, is amended to read: \n\line 220.34 Subd. 2. [COLLECTOR VEHICLE.] A passenger automobile that \n\line 220.35 is registered under section 168.10, subdivision 1a, 1b, 1c, 1d, \n\line 220.36 or 1h, or a fire truck registered under section 168.10, \n\line 221.1 subdivision 1c, shall be taxed under section 297B.02, \n\line 221.2 subdivision 3{\strike , and the registrar shall not designate as an} \n\line 221.3 {\strike above-market automobile a passenger automobile or a fire truck} \n\line 221.4 {\strike registered under those subdivisions}. If the vehicle is \n\line 221.5 subsequently registered in another class not under section \n\line 221.6 168.10, subdivision 1a, 1b, 1c, 1d, or 1h, within one year of \n\line 221.7 the date of registration under those subdivisions, it shall be \n\line 221.8 subject to the full excise tax imposed under subdivision 1. \n\line 221.9 [EFFECTIVE DATE.] {\ul This section is effective for vehicles} \n\line 221.10 {\ul purchased after December 31, 2003.} \n\line 221.11 Sec. 16. Minnesota Statutes 2002, section 297B.035, \n\line 221.12 subdivision 1, is amended to read: \n\line 221.13 Subdivision 1. [ORDINARY COURSE OF BUSINESS.] Except as \n\line 221.14 provided in this section, motor vehicles purchased for resale in \n\line 221.15 the ordinary course of business {\strike or used} by any motor vehicle \n\line 221.16 dealer, as defined in section 168.011, subdivision 21, who is \n\line 221.17 licensed under section 168.27, subdivision 2 or 3, which bear \n\line 221.18 dealer plates as authorized by section 168.27, subdivision 16, \n\line 221.19 shall be exempt from the provisions of this chapter. \n\line 221.20 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 221.21 {\ul following final enactment.} \n\line 221.22 Sec. 17. [REPEALER.] \n\line 221.23 {\ul (a) Minnesota Statutes 2002, section 297A.72, subdivision} \n\line 221.24 {\ul 1, is repealed effective for exemption certificates received for} \n\line 221.25 {\ul sales occurring after June 30, 2003.} \n\line 221.26 {\ul (b) Minnesota Statutes 2002, section 297A.97, is repealed} \n\line 221.27 {\ul effective for sales and purchases occurring after December 31,} \n\line 221.28 {\ul 2003.} \n\line 221.29 {\ul (c) Minnesota Rules, parts 8130.0800, subparts 5 and 12;} \n\line 221.30 {\ul 8130.1300; 8130.1600, subpart 5; 8130.1700, subparts 3 and 4;} \n\line 221.31 {\ul 8130.4800, subpart 2; 8130.7500, subpart 5; 8130.8000; and} \n\line 221.32 {\ul 8130.8300, are repealed effective the day following final} \n\line 221.33 {\ul enactment.} \n\line 221.34 ARTICLE 10 \n\line 221.35 DEPARTMENT SPECIAL TAXES INITIATIVES \n\line 221.36 Section 1. Minnesota Statutes 2002, section 115B.24, \n\line 222.1 subdivision 8, is amended to read: \n\line 222.2 Subd. 8. [PENALTIES; ENFORCEMENT.] The audit, penalty and \n\line 222.3 enforcement provisions applicable to {\ul corporate franchise} taxes \n\line 222.4 imposed under chapter 290 apply to the taxes imposed under \n\line 222.5 section 115B.22 and those provisions shall be administered by \n\line 222.6 the commissioner. \n\line 222.7 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 222.8 {\ul following final enactment.} \n\line 222.9 Sec. 2. Minnesota Statutes 2002, section 295.50, \n\line 222.10 subdivision 9b, is amended to read: \n\line 222.11 Subd. 9b. [PATIENT SERVICES.] (a) "Patient services" means \n\line 222.12 inpatient and outpatient services and other goods and services \n\line 222.13 provided by hospitals, surgical centers, or health care \n\line 222.14 providers. They include the following health care goods and \n\line 222.15 services provided to a patient or consumer: \n\line 222.16 (1) bed and board; \n\line 222.17 (2) nursing services and other related services; \n\line 222.18 (3) use of hospitals, surgical centers, or health care \n\line 222.19 provider facilities; \n\line 222.20 (4) medical social services; \n\line 222.21 (5) drugs, biologicals, supplies, appliances, and \n\line 222.22 equipment; \n\line 222.23 (6) other diagnostic or therapeutic items or services; \n\line 222.24 (7) medical or surgical services; \n\line 222.25 (8) items and services furnished to ambulatory patients not \n\line 222.26 requiring emergency care; \n\line 222.27 (9) emergency services; and \n\line 222.28 (10) covered services listed in section 256B.0625 and in \n\line 222.29 Minnesota Rules, parts 9505.0170 to 9505.0475. \n\line 222.30 (b) "Patient services" does not include: \n\line 222.31 (1) services provided to nursing homes licensed under \n\line 222.32 chapter 144A; {\strike and} \n\line 222.33 (2) examinations for purposes of utilization reviews, \n\line 222.34 insurance claims or eligibility, litigation, and employment, \n\line 222.35 including reviews of medical records for those purposes{\ul ;} \n\line 222.36 {\ul (3) services provided by community residential mental} \n\line 223.1 {\ul health facilities licensed under Minnesota Rules, parts} \n\line 223.2 {\ul 9520.0500 to 9520.0690;} \n\line 223.3 {\ul (4) services provided by community support programs and} \n\line 223.4 {\ul family community support programs approved under Minnesota} \n\line 223.5 {\ul Rules, parts 9535.1700 to 9535.1760;} \n\line 223.6 {\ul (5) services provided by community mental health centers as} \n\line 223.7 {\ul defined in section 245.62, subdivision 2;} \n\line 223.8 {\ul (6) services provided by assisted living programs and} \n\line 223.9 {\ul congregate housing programs; and} \n\line 223.10 {\ul (7) hospice care services}. \n\line 223.11 [EFFECTIVE DATE.] {\ul This section is effective for gross} \n\line 223.12 {\ul revenues received after December 31, 2002.} \n\line 223.13 Sec. 3. Minnesota Statutes 2002, section 295.53, \n\line 223.14 subdivision 1, is amended to read: \n\line 223.15 Subdivision 1. [EXEMPTIONS.] (a) The following payments \n\line 223.16 are excluded from the gross revenues subject to the hospital, \n\line 223.17 surgical center, or health care provider taxes under sections \n\line 223.18 295.50 to {\strike 295.57} {\ul 295.59}: \n\line 223.19 (1) payments received for services provided under the \n\line 223.20 Medicare program, including payments received from the \n\line 223.21 government, and organizations governed by sections 1833 and 1876 \n\line 223.22 of title XVIII of the federal Social Security Act, United States \n\line 223.23 Code, title 42, section 1395, and enrollee deductibles, \n\line 223.24 coinsurance, and copayments, whether paid by the Medicare \n\line 223.25 enrollee or by a Medicare supplemental coverage as defined in \n\line 223.26 section 62A.011, subdivision 3, clause (10). Payments for \n\line 223.27 services not covered by Medicare are taxable; \n\line 223.28 (2) medical assistance payments including payments received \n\line 223.29 directly from the government or from a prepaid plan; \n\line 223.30 (3) payments received for home health care services; \n\line 223.31 (4) payments received from hospitals or surgical centers \n\line 223.32 for goods and services on which liability for tax is imposed \n\line 223.33 under section 295.52 or the source of funds for the payment is \n\line 223.34 exempt under clause (1), (2), (7), (8), (10), (13), \n\line 223.35 or {\strike (20)} {\ul (17)}; \n\line 223.36 (5) payments received from health care providers for goods \n\line 224.1 and services on which liability for tax is imposed under this \n\line 224.2 chapter or the source of funds for the payment is exempt under \n\line 224.3 clause (1), (2), (7), (8), (10), (13), or {\strike (20)} {\ul (17)}; \n\line 224.4 (6) amounts paid for legend drugs, other than nutritional \n\line 224.5 products, to a wholesale drug distributor who is subject to tax \n\line 224.6 under section 295.52, subdivision 3, reduced by reimbursements \n\line 224.7 received for legend drugs otherwise exempt under this chapter; \n\line 224.8 (7) payments received under the general assistance medical \n\line 224.9 care program including payments received directly from the \n\line 224.10 government or from a prepaid plan; \n\line 224.11 (8) payments received for providing services under the \n\line 224.12 MinnesotaCare program including payments received directly from \n\line 224.13 the government or from a prepaid plan and enrollee deductibles, \n\line 224.14 coinsurance, and copayments. For purposes of this clause, \n\line 224.15 coinsurance means the portion of payment that the enrollee is \n\line 224.16 required to pay for the covered service; \n\line 224.17 (9) payments received by a health care provider or the \n\line 224.18 wholly owned subsidiary of a health care provider for care \n\line 224.19 provided outside Minnesota; \n\line 224.20 (10) payments received from the chemical dependency fund \n\line 224.21 under chapter 254B; \n\line 224.22 (11) payments received in the nature of charitable \n\line 224.23 donations that are not designated for providing patient services \n\line 224.24 to a specific individual or group; \n\line 224.25 (12) payments received for providing patient services \n\line 224.26 incurred through a formal program of health care research \n\line 224.27 conducted in conformity with federal regulations governing \n\line 224.28 research on human subjects. Payments received from patients or \n\line 224.29 from other persons paying on behalf of the patients are subject \n\line 224.30 to tax; \n\line 224.31 (13) payments received from any governmental agency for \n\line 224.32 services benefiting the public, not including payments made by \n\line 224.33 the government in its capacity as an employer or insurer; \n\line 224.34 {\strike (14) payments received for services provided by community} \n\line 224.35 {\strike residential mental health facilities licensed under Minnesota} \n\line 224.36 {\strike Rules, parts 9520.0500 to 9520.0690, community support programs} \n\line 225.1 {\strike and family community support programs approved under Minnesota} \n\line 225.2 {\strike Rules, parts 9535.1700 to 9535.1760, and community mental health} \n\line 225.3 {\strike centers as defined in section 245.62, subdivision 2;} \n\line 225.4 {\strike (15)} {\ul (14)} government payments received by a regional \n\line 225.5 treatment center; \n\line 225.6 {\strike (16) payments received for hospice care services;} \n\line 225.7 {\strike (17)} {\ul (15)} payments received by a health care provider for \n\line 225.8 hearing aids and related equipment or prescription eyewear \n\line 225.9 delivered outside of Minnesota; \n\line 225.10 {\strike (18)} {\ul (16)} payments received by an educational institution \n\line 225.11 from student tuition, student activity fees, health care service \n\line 225.12 fees, government appropriations, donations, or grants. Fee for \n\line 225.13 service payments and payments for extended coverage are taxable; \n\line 225.14 {\ul and} \n\line 225.15 {\strike (19) payments received for services provided by: assisted} \n\line 225.16 {\strike living programs and congregate housing programs; and} \n\line 225.17 {\strike (20)} {\ul (17)} payments received under the federal Employees \n\line 225.18 Health Benefits Act, United States Code, title 5, section \n\line 225.19 8909(f), as amended by the Omnibus Reconciliation Act of 1990. \n\line 225.20 (b) Payments received by wholesale drug distributors for \n\line 225.21 legend drugs sold directly to veterinarians or veterinary bulk \n\line 225.22 purchasing organizations are excluded from the gross revenues \n\line 225.23 subject to the wholesale drug distributor tax under sections \n\line 225.24 295.50 to 295.59. \n\line 225.25 [EFFECTIVE DATE.] {\ul This section is effective for gross} \n\line 225.26 {\ul revenues received after December 31, 2002.} \n\line 225.27 Sec. 4. Minnesota Statutes 2002, section 297F.01, \n\line 225.28 subdivision 21a, is amended to read: \n\line 225.29 Subd. 21a. [UNLICENSED SELLER.] "Unlicensed seller" means \n\line 225.30 anyone who is not licensed under section 297F.03 {\strike or 461.12} to \n\line 225.31 sell the particular product to the purchaser or possessor of the \n\line 225.32 product. \n\line 225.33 [EFFECTIVE DATE.] {\ul This section is effective July 1, 2003.} \n\line 225.34 Sec. 5. Minnesota Statutes 2002, section 297F.01, \n\line 225.35 subdivision 23, is amended to read: \n\line 225.36 Subd. 23. [WHOLESALE {\ul SALES} PRICE.] "Wholesale {\ul sales} price" \n\line 226.1 means the {\strike established} price {\ul stated on the price list in effect} \n\line 226.2 {\ul at the time of sale} for which a manufacturer or person sells a \n\line 226.3 tobacco product to a distributor, exclusive of any discount{\ul ,} \n\line 226.4 {\ul promotional offer,} or other reduction. {\ul For purposes of this} \n\line 226.5 {\ul subdivision, "price list" means the manufacturer's price at} \n\line 226.6 {\ul which tobacco products are made available for sale to all} \n\line 226.7 {\ul distributors on an ongoing basis.} \n\line 226.8 [EFFECTIVE DATE.] {\ul This section is effective July 1, 2003.} \n\line 226.9 Sec. 6. Minnesota Statutes 2002, section 297F.06, \n\line 226.10 subdivision 4, is amended to read: \n\line 226.11 Subd. 4. [TOBACCO PRODUCTS USE TAX.] The tobacco products \n\line 226.12 use tax does not apply to the {\ul possession,} use{\ul ,} or storage of \n\line 226.13 tobacco products {\strike in quantities of:} {\ul that have an aggregate cost} \n\line 226.14 {\ul in any calendar month to the consumer of $100 or less.} \n\line 226.15 {\strike (1) not more than 50 cigars;} \n\line 226.16 {\strike (2) not more than ten ounces snuff or snuff powder;} \n\line 226.17 {\strike (3) not more than one pound smoking or chewing tobacco or} \n\line 226.18 {\strike any other tobacco product in the possession of any one consumer.} \n\line 226.19 [EFFECTIVE DATE.] {\ul This section is effective July 1, 2003.} \n\line 226.20 Sec. 7. Minnesota Statutes 2002, section 297F.20, \n\line 226.21 subdivision 1, is amended to read: \n\line 226.22 Subdivision 1. [PENALTIES FOR FAILURE TO FILE OR PAY.] (a) \n\line 226.23 A person {\ul or consumer} required to file a return, report, or other \n\line 226.24 document with the commissioner who fails to do so is guilty of a \n\line 226.25 misdemeanor. \n\line 226.26 (b) A person {\ul or consumer} required to pay or to collect and \n\line 226.27 remit a tax under this chapter, who fails to do so when \n\line 226.28 required, is guilty of a misdemeanor. \n\line 226.29 [EFFECTIVE DATE.] {\ul This section is effective for acts} \n\line 226.30 {\ul committed on or after July 1, 2003.} \n\line 226.31 Sec. 8. Minnesota Statutes 2002, section 297F.20, \n\line 226.32 subdivision 2, is amended to read: \n\line 226.33 Subd. 2. [PENALTIES FOR KNOWING FAILURE TO FILE OR PAY.] \n\line 226.34 (a) A person {\ul or consumer} required to file a return, report, or \n\line 226.35 other document with the commissioner, who knowingly, rather than \n\line 226.36 accidentally, inadvertently, or negligently, fails to file it \n\line 227.1 when required, is guilty of a gross misdemeanor. \n\line 227.2 (b) A person {\ul or consumer} required to pay or to collect and \n\line 227.3 remit a tax under this chapter, who knowingly, rather than \n\line 227.4 accidentally, inadvertently, or negligently, fails to file it \n\line 227.5 when required, is guilty of a gross misdemeanor. \n\line 227.6 [EFFECTIVE DATE.] {\ul This section is effective for acts} \n\line 227.7 {\ul committed on or after July 1, 2003.} \n\line 227.8 Sec. 9. Minnesota Statutes 2002, section 297F.20, \n\line 227.9 subdivision 3, is amended to read: \n\line 227.10 Subd. 3. [FALSE OR FRAUDULENT RETURNS; PENALTIES.] (a) A \n\line 227.11 person {\ul or consumer} who files with the commissioner a return, \n\line 227.12 report, or other document, or who maintains or provides invoices \n\line 227.13 subject to review by the commissioner under this chapter, known \n\line 227.14 by the person {\ul or consumer} to be fraudulent or false concerning a \n\line 227.15 material matter, is guilty of a felony. \n\line 227.16 (b) A person {\ul or consumer} who knowingly aids or assists in, \n\line 227.17 or advises in the preparation or presentation of a return, \n\line 227.18 report, invoice, or other document that is fraudulent or false \n\line 227.19 concerning a material matter, whether or not the falsity or \n\line 227.20 fraud is committed with the knowledge or consent of the \n\line 227.21 person {\ul or consumer} authorized or required to present the return, \n\line 227.22 report, invoice, or other document, is guilty of a felony. \n\line 227.23 [EFFECTIVE DATE.] {\ul This section is effective for acts} \n\line 227.24 {\ul committed on or after July 1, 2003.} \n\line 227.25 Sec. 10. Minnesota Statutes 2002, section 297F.20, \n\line 227.26 subdivision 6, is amended to read: \n\line 227.27 Subd. 6. [UNSTAMPED CIGARETTES; UNTAXED TOBACCO PRODUCTS.] \n\line 227.28 (a) A person{\ul , other than a licensed distributor or a consumer,} \n\line 227.29 who possesses, receives, or transports {\strike more than 200 but} fewer \n\line 227.30 than 5,000 unstamped cigarettes, or up to {\strike $100} {\ul $350} worth of \n\line 227.31 untaxed tobacco products is guilty of a misdemeanor. \n\line 227.32 (b) A person{\ul , other than a licensed distributor or a} \n\line 227.33 {\ul consumer,} who possesses, receives, or transports 5,000 or more, \n\line 227.34 but fewer than 20,001 unstamped cigarettes, or {\strike up to $500} {\ul more} \n\line 227.35 {\ul than $350 but less than $1,400} worth of untaxed tobacco products \n\line 227.36 is guilty of a gross misdemeanor. \n\line 228.1 (c) A person{\ul , other than a licensed distributor or a} \n\line 228.2 {\ul consumer,} who possesses, receives, or transports more than \n\line 228.3 20,000 unstamped cigarettes, or {\strike $500} {\ul $1,400} or more worth of \n\line 228.4 untaxed tobacco products is guilty of a felony. \n\line 228.5 {\ul (d) For purposes of this subdivision, an individual in} \n\line 228.6 {\ul possession of more than 4,999 unstamped cigarettes, or more than} \n\line 228.7 {\ul $350 worth of untaxed tobacco products, is presumed not to be a} \n\line 228.8 {\ul consumer.} \n\line 228.9 [EFFECTIVE DATE.] {\ul This section is effective for acts} \n\line 228.10 {\ul committed on or after July 1, 2003.} \n\line 228.11 Sec. 11. Minnesota Statutes 2002, section 297F.20, \n\line 228.12 subdivision 9, is amended to read: \n\line 228.13 Subd. 9. [PURCHASES FROM UNLICENSED SELLERS.] (a) {\ul No} \n\line 228.14 {\ul retailer or subjobber shall purchase cigarettes or tobacco} \n\line 228.15 {\ul products from any person who is not licensed under section} \n\line 228.16 {\ul 297F.03 as a licensed distributor or subjobber.} \n\line 228.17 {\ul (b)} A retailer{\strike ,} {\ul or} subjobber{\strike , or consumer} who purchases \n\line 228.18 from an unlicensed seller {\strike more than 200 but} fewer than 5,000 \n\line 228.19 cigarettes or up to {\strike $100} {\ul $350} worth of tobacco products is \n\line 228.20 guilty of a misdemeanor. \n\line 228.21 {\strike (b)} {\ul (c)} A retailer{\strike ,} {\ul or} subjobber{\strike , or consumer} who \n\line 228.22 purchases from an unlicensed seller 5,000 or more, but fewer \n\line 228.23 than 20,001 cigarettes or {\strike up to $500} {\ul more than $350 but less} \n\line 228.24 {\ul than $1,400} worth of {\strike untaxed} tobacco products is guilty of a \n\line 228.25 gross misdemeanor. \n\line 228.26 {\strike (c)} {\ul (d)} A retailer{\strike ,} {\ul or} subjobber{\strike , or consumer} who \n\line 228.27 purchases from an unlicensed seller more than 20,000 cigarettes \n\line 228.28 or {\strike $500} {\ul $1,400} or more worth of tobacco products is guilty of a \n\line 228.29 felony. \n\line 228.30 [EFFECTIVE DATE.] {\ul This section is effective for acts} \n\line 228.31 {\ul committed on or after July 1, 2003.} \n\line 228.32 Sec. 12. Minnesota Statutes 2002, section 297I.01, \n\line 228.33 subdivision 9, is amended to read: \n\line 228.34 Subd. 9. [GROSS PREMIUMS.] "Gross premiums" means total \n\line 228.35 premiums paid by policyholders and applicants of policies, \n\line 228.36 whether received in the form of money or other valuable \n\line 229.1 consideration, on property, persons, lives, interests and other \n\line 229.2 risks located, resident, or to be performed in this state, but \n\line 229.3 excluding consideration and premiums for reinsurance assumed \n\line 229.4 from other insurance companies. The term "gross premiums" \n\line 229.5 includes the total consideration paid to bail bond agents for \n\line 229.6 bail bonds. For title insurance companies, "gross premiums" \n\line 229.7 means the charge for title insurance made by a title insurance \n\line 229.8 company or its agents according to the company's rate filing \n\line 229.9 approved by the commissioner of commerce without a deduction for \n\line 229.10 commissions paid to or retained by the agent. Gross premiums of \n\line 229.11 a title insurance company does not include any other charge or \n\line 229.12 fee for abstracting, searching, or examining the title, or \n\line 229.13 escrow, closing, or other related services. {\ul The term "gross} \n\line 229.14 {\ul premiums" includes any workers' compensation special} \n\line 229.15 {\ul compensation fund premium surcharge pursuant to section 176.129.} \n\line 229.16 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 229.17 {\ul following final enactment.} \n\line 229.18 Sec. 13. Minnesota Statutes 2002, section 297I.20, is \n\line 229.19 amended to read: \n\line 229.20 297I.20 [{\strike GUARANTY ASSOCIATION ASSESSMENT OFFSET} {\ul OFFSETS} \n\line 229.21 {\ul AGAINST PREMIUM TAXES}.] \n\line 229.22 {\ul Subdivision 1.} [GUARANTY ASSOCIATION ASSESSMENT OFFSETS.] \n\line 229.23 (a) An insurance company may offset against its premium tax \n\line 229.24 liability to this state any amount paid for assessments made for \n\line 229.25 insolvencies which occur after July 31, 1994, under sections \n\line 229.26 60C.01 to 60C.22; and any amount paid for assessments made after \n\line 229.27 July 31, 1994, under Minnesota Statutes 1992, sections 61B.01 to \n\line 229.28 61B.16, or under sections 61B.18 to 61B.32 as follows: \n\line 229.29 (1) Each such assessment shall give rise to an amount of \n\line 229.30 offset equal to 20 percent of the amount of the assessment for \n\line 229.31 each of the five calendar years following the year in which the \n\line 229.32 assessment was paid. \n\line 229.33 (2) The amount of offset initially determined for each \n\line 229.34 taxable year is the sum of the amounts determined under clause \n\line 229.35 (1) for that taxable year. \n\line 229.36 (b)(1) Each year the commissioner shall compare total \n\line 230.1 guaranty association assessments levied over the preceding five \n\line 230.2 calendar years to the sum of all premium tax and corporate \n\line 230.3 franchise tax revenues collected from insurance companies, \n\line 230.4 without reduction for any guaranty association assessment offset \n\line 230.5 in the preceding calendar year, referred to in this subdivision \n\line 230.6 as "preceding year insurance tax revenues." \n\line 230.7 (2) If total guaranty association assessments levied over \n\line 230.8 the preceding five years exceed the preceding year insurance tax \n\line 230.9 revenues, insurance companies must be allowed only a \n\line 230.10 proportionate part of the premium tax offset calculated under \n\line 230.11 paragraph (a) for the current calendar year. \n\line 230.12 (3) The proportionate part of the premium tax offset \n\line 230.13 allowed in the current calendar year is determined by \n\line 230.14 multiplying the amount calculated under paragraph (a) by a \n\line 230.15 fraction. The numerator of the fraction equals the preceding \n\line 230.16 year insurance tax revenues, and its denominator equals total \n\line 230.17 guaranty association assessments levied over the preceding \n\line 230.18 five-year period. \n\line 230.19 (4) The proportionate part of the premium tax offset that \n\line 230.20 is not allowed must be carried forward to subsequent tax years \n\line 230.21 and added to the amount of premium tax offset calculated under \n\line 230.22 paragraph (a) prior to application of the limitation imposed by \n\line 230.23 this paragraph. \n\line 230.24 (5) Any amount carried forward from prior years must be \n\line 230.25 allowed before allowance of the offset for the current year \n\line 230.26 calculated under paragraph (a). \n\line 230.27 (6) The premium tax offset limitation must be calculated \n\line 230.28 separately for (i) insurance companies subject to assessment \n\line 230.29 under sections 60C.01 to 60C.22, and (ii) insurance companies \n\line 230.30 subject to assessment under Minnesota Statutes 1992, sections \n\line 230.31 61B.01 to 61B.16, or 61B.18 to 61B.32. \n\line 230.32 (7) When the premium tax offset is limited by this \n\line 230.33 provision, the commissioner shall notify affected insurance \n\line 230.34 companies on a timely basis for purposes of completing premium \n\line 230.35 and corporate franchise tax returns. \n\line 230.36 (8) The guaranty associations created under sections 60C.01 \n\line 231.1 to 60C.22, Minnesota Statutes 1992, sections 61B.01 to 61B.16, \n\line 231.2 and 61B.18 to 61B.32, shall provide the commissioner with the \n\line 231.3 necessary information on guaranty association assessments. \n\line 231.4 (c)(1) If the offset determined by the application of \n\line 231.5 paragraphs (a) and (b) exceeds the insurance company's premium \n\line 231.6 tax liability under this section prior to allowance of the \n\line 231.7 credit for premium taxes, then the insurance company may carry \n\line 231.8 forward the excess, referred to in this subdivision as the \n\line 231.9 "carryforward credit" to subsequent taxable years. \n\line 231.10 (2) The carryforward credit is allowed as an offset against \n\line 231.11 premium tax liability for the first succeeding year to the \n\line 231.12 extent that the premium tax liability for that year exceeds the \n\line 231.13 amount of the allowable offset for the year determined under \n\line 231.14 paragraphs (a) and (b). \n\line 231.15 (3) The carryforward credit must be reduced, but not below \n\line 231.16 zero, by the amount of the carryforward credit allowed as an \n\line 231.17 offset against the premium tax under this paragraph. The \n\line 231.18 remainder, if any, of the carryforward credit must be carried \n\line 231.19 forward to succeeding taxable years until the entire \n\line 231.20 carryforward credit has been credited against the insurance \n\line 231.21 company's liability for premium tax under this chapter if \n\line 231.22 applicable for that taxable year. \n\line 231.23 (d) When an insurer has offset against taxes its payment of \n\line 231.24 an assessment of the Minnesota life and health guaranty \n\line 231.25 association, and the association pays the insurer a refund with \n\line 231.26 respect to the assessment under Minnesota Statutes 1992, section \n\line 231.27 61B.07, subdivision 6, or 61B.24, subdivision 6, then the refund \n\line 231.28 reduces the insurer's carryforward credit under paragraph (c). \n\line 231.29 If the refund exceeds the amount of the carryforward credit, the \n\line 231.30 excess amount must be repaid to the state by the insurers to the \n\line 231.31 extent of the offset in the manner the commissioner requires. \n\line 231.32 {\ul Subd. 2.} [JOINT UNDERWRITING ASSOCIATION OFFSET.] {\ul An} \n\line 231.33 {\ul assessment made pursuant to section 62I.06, subdivision 6, shall} \n\line 231.34 {\ul be deductible by the member from past or future premium taxes} \n\line 231.35 {\ul due the state.} \n\line 231.36 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 232.1 {\ul following final enactment.} \n\line 232.2 Sec. 14. [REVISOR'S INSTRUCTION.] \n\line 232.3 {\ul In the next edition of Minnesota Rules, the revisor shall} \n\line 232.4 {\ul delete any references to the sections repealed in section 15,} \n\line 232.5 {\ul paragraph (a).} \n\line 232.6 Sec. 15. [REPEALER.] \n\line 232.7 {\ul (a) Minnesota Statutes 2002, sections 294.01; 294.02;} \n\line 232.8 {\ul 294.021; 294.03; 294.06; 294.07; 294.08; 294.09; 294.10; 294.11;} \n\line 232.9 {\ul and 294.12, are repealed effective the day following final} \n\line 232.10 {\ul enactment.} \n\line 232.11 {\ul (b) Minnesota Rules, parts 8125.1000; 8125.1300, subpart 1;} \n\line 232.12 {\ul and 8125.1400, are repealed effective the day following final} \n\line 232.13 {\ul enactment.} \n\line 232.14 ARTICLE 11 \n\line 232.15 DEPARTMENT COLLECTIONS AND COMPLIANCE INITIATIVES \n\line 232.16 Section 1. [270.278] [PENALTY FOR FILING CERTAIN DOCUMENTS \n\line 232.17 AGAINST DEPARTMENT OF REVENUE EMPLOYEES.] \n\line 232.18 {\ul Subdivision 1.} [DEFINITIONS.] {\ul (a) "Recording office" means} \n\line 232.19 {\ul a county recorder, registrar of titles, or secretary of state in} \n\line 232.20 {\ul this state or another state.} \n\line 232.21 {\ul (b) "Filing party" means the person or persons requesting} \n\line 232.22 {\ul or causing another person to request that the recording office} \n\line 232.23 {\ul accept documents or instruments for recording or filing.} \n\line 232.24 {\ul Subd. 2.} [INVALID DOCUMENTS NAMING THE COMMISSIONER OR \n\line 232.25 DEPARTMENT OF REVENUE EMPLOYEES.] {\ul Filing a document, including a} \n\line 232.26 {\ul nonconsensual common law lien under section 514.99, that} \n\line 232.27 {\ul purports to create a claim against the commissioner of revenue} \n\line 232.28 {\ul or an employee of the department of revenue based on performance} \n\line 232.29 {\ul or nonperformance of duties by the commissioner or employee is} \n\line 232.30 {\ul invalid unless accompanied by a specific order from a court of} \n\line 232.31 {\ul competent jurisdiction authorizing the filing of the document or} \n\line 232.32 {\ul unless a specific statute authorizes the filing of the document.} \n\line 232.33 {\ul Subd. 3.} [CIVIL PENALTY.] {\ul If a filing party causes a} \n\line 232.34 {\ul document described in subdivision 2 to be recorded in a} \n\line 232.35 {\ul recording office, the commissioner may assess a penalty against} \n\line 232.36 {\ul the filing party of $1,000 per document filed, payable to the} \n\line 233.1 {\ul general fund. An order assessing a penalty under this section} \n\line 233.2 {\ul is reviewable administratively under section 289A.65 and is} \n\line 233.3 {\ul appealable to tax court under chapter 271. The penalty is} \n\line 233.4 {\ul collected and paid in the same manner as income tax. The} \n\line 233.5 {\ul penalty is in addition to any other remedy available to the} \n\line 233.6 {\ul commissioner of revenue or to an employee of the department of} \n\line 233.7 {\ul revenue against whom the document has been filed.} \n\line 233.8 [EFFECTIVE DATE.] {\ul This section is effective for documents} \n\line 233.9 {\ul filed on or after July 1, 2003.} \n\line 233.10 Sec. 2. Minnesota Statutes 2002, section 270.69, is \n\line 233.11 amended by adding a subdivision to read: \n\line 233.12 {\ul Subd. 16.} [ATTACHMENT TO PROCEEDS OF PROPERTY.] {\ul Any lien} \n\line 233.13 {\ul imposed under this section attaches to the proceeds of property} \n\line 233.14 {\ul with the same priority that the lien has with respect to the} \n\line 233.15 {\ul property itself. "Proceeds of property" means proceeds from the} \n\line 233.16 {\ul sale, lease, license, exchange, or other disposition of the} \n\line 233.17 {\ul property, including insurance proceeds arising from the loss or} \n\line 233.18 {\ul destruction of the property.} \n\line 233.19 [EFFECTIVE DATE.] {\ul This section is effective for all liens,} \n\line 233.20 {\ul whether imposed prior to, on, or after the day following final} \n\line 233.21 {\ul enactment.} \n\line 233.22 Sec. 3. Minnesota Statutes 2002, section 270.701, \n\line 233.23 subdivision 2, is amended to read: \n\line 233.24 Subd. 2. [NOTICE OF SALE.] The commissioner shall as soon \n\line 233.25 as practicable after the seizure of the property give notice of \n\line 233.26 sale of the property to the owner, in the manner of service \n\line 233.27 prescribed in subdivision 1. In the case of personal property, \n\line 233.28 the notice shall be served at least 10 days prior to the sale. \n\line 233.29 In the case of real property, the notice shall be served at \n\line 233.30 least four weeks prior to the sale. The commissioner shall also \n\line 233.31 cause public notice of each sale to be made. In the case of \n\line 233.32 personal property, notice shall be posted at least 10 days prior \n\line 233.33 to the sale at the county courthouse for the county where the \n\line 233.34 seizure is made, and in not less than two other public \n\line 233.35 places. {\ul For purposes of this requirement, the Internet is a} \n\line 233.36 {\ul public place for posting the information.} In the case of real \n\line 234.1 property, six weeks' published notice shall be given prior to \n\line 234.2 the sale, in a newspaper published or generally circulated in \n\line 234.3 the county. The notice of sale provided in this subdivision \n\line 234.4 shall specify the property to be sold, and the time, place, \n\line 234.5 manner and conditions of the sale. Whenever levy is made \n\line 234.6 without regard to the 30-day period provided in section 270.70, \n\line 234.7 subdivision 2, public notice of sale of the property seized \n\line 234.8 shall not be made within the 30-day period unless section \n\line 234.9 270.702 (relating to sale of perishable goods) is applicable. \n\line 234.10 [EFFECTIVE DATE.] {\ul This section is effective for notices of} \n\line 234.11 {\ul sales posted on or after the day following final enactment.} \n\line 234.12 Sec. 4. Minnesota Statutes 2002, section 270.701, is \n\line 234.13 amended by adding a subdivision to read: \n\line 234.14 {\ul Subd. 7.} [SALE OF SEIZED SECURITIES.] {\ul (a) At the time of} \n\line 234.15 {\ul levy on securities, the commissioner shall provide notice to the} \n\line 234.16 {\ul taxpayer that the securities may be sold after ten days from the} \n\line 234.17 {\ul date of seizure.} \n\line 234.18 {\ul (b) If the commissioner levies upon nonexempt publicly} \n\line 234.19 {\ul traded securities and the value of the securities is less than} \n\line 234.20 {\ul or equal to the total obligation for which the levy is done,} \n\line 234.21 {\ul after ten days the person who possesses or controls the} \n\line 234.22 {\ul securities shall liquidate the securities in a commercially} \n\line 234.23 {\ul reasonable manner. After liquidation, the person shall transfer} \n\line 234.24 {\ul the proceeds to the commissioner, less any applicable} \n\line 234.25 {\ul commissions or fees, or both, which are charged in the normal} \n\line 234.26 {\ul course of business.} \n\line 234.27 {\ul (c) If the commissioner levies upon nonexempt publicly} \n\line 234.28 {\ul traded securities and the value of the securities exceeds the} \n\line 234.29 {\ul total amount of the levy, the owner of the securities may,} \n\line 234.30 {\ul within seven days after receipt of the department's notice of} \n\line 234.31 {\ul levy given pursuant to subdivision 1, instruct the person who} \n\line 234.32 {\ul possesses or controls the securities which securities are to be} \n\line 234.33 {\ul sold to satisfy the obligation. If the owner does not provide} \n\line 234.34 {\ul instructions for liquidation, the person who possesses or} \n\line 234.35 {\ul controls the securities shall liquidate the securities in an} \n\line 234.36 {\ul amount sufficient to pay the obligation, plus any applicable} \n\line 235.1 {\ul commissions or fees, or both, which are charged in the normal} \n\line 235.2 {\ul course of business, beginning with the nonexempt securities} \n\line 235.3 {\ul purchased most recently. After liquidation, the person who} \n\line 235.4 {\ul possesses or controls the securities shall transfer to the} \n\line 235.5 {\ul commissioner the amount of money needed to satisfy the levy.} \n\line 235.6 [EFFECTIVE DATE.] {\ul This section is effective for sales of} \n\line 235.7 {\ul securities seized on or after the day following final enactment.} \n\line 235.8 Sec. 5. Minnesota Statutes 2002, section 270.72, \n\line 235.9 subdivision 2, is amended to read: \n\line 235.10 Subd. 2. [DEFINITIONS.] For purposes of this section, the \n\line 235.11 following terms have the meanings given. \n\line 235.12 (a) "Taxes" {\strike are} {\ul mean} all taxes payable to the commissioner \n\line 235.13 including penalties and interest due on the taxes. \n\line 235.14 (b) "Delinquent taxes" do not include a tax liability if \n\line 235.15 (i) an administrative or court action which contests the amount \n\line 235.16 or validity of the liability has been filed or served, (ii) the \n\line 235.17 appeal period to contest the tax liability has not expired, or \n\line 235.18 (iii) the applicant has entered into a payment agreement and is \n\line 235.19 current with the payments. \n\line 235.20 (c) "Applicant" means an individual if the license is \n\line 235.21 issued to or in the name of an individual or the corporation or \n\line 235.22 partnership if the license is issued to or in the name of a \n\line 235.23 corporation or partnership. "Applicant" also means an officer \n\line 235.24 of a corporation, a member of a partnership, or an individual \n\line 235.25 who is liable for delinquent taxes, either for the entity for \n\line 235.26 which the license is at issue or for another entity for which \n\line 235.27 the liability was incurred, or personally as a licensee. In the \n\line 235.28 case of a license transfer, "applicant" also means both the \n\line 235.29 transferor and the transferee of the license. "Applicant" also \n\line 235.30 means any holder of a license. \n\line 235.31 (d) "License" {\strike includes} {\ul means any permit, registration,} \n\line 235.32 {\ul certification, or other form of approval authorized by statute} \n\line 235.33 {\ul or rule to be issued by the state or a political subdivision of} \n\line 235.34 {\ul the state as a condition of doing business or conducting a} \n\line 235.35 {\ul trade, profession, or occupation in Minnesota, specifically} \n\line 235.36 {\ul including, but not limited to,} a contract for space rental at \n\line 236.1 the Minnesota state fair {\ul and authorization to operate} \n\line 236.2 {\ul concessions or rides at county and local fairs, festivals, or} \n\line 236.3 {\ul events}. \n\line 236.4 (e) "Licensing authority" includes the Minnesota state fair \n\line 236.5 board {\ul and county and local boards or governing bodies}. \n\line 236.6 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 236.7 {\ul following final enactment.} \n\line 236.8 Sec. 6. Minnesota Statutes 2002, section 270A.03, \n\line 236.9 subdivision 2, is amended to read: \n\line 236.10 Subd. 2. [CLAIMANT AGENCY.] "Claimant agency" means any \n\line 236.11 state agency, as defined by section 14.02, subdivision 2, the \n\line 236.12 regents of the University of Minnesota, any district court of \n\line 236.13 the state, any county, any statutory or home rule charter city \n\line 236.14 presenting a claim for a municipal hospital or a public library \n\line 236.15 or a municipal ambulance service, a hospital district, a private \n\line 236.16 nonprofit hospital that leases its building from the county in \n\line 236.17 which it is located, any public agency responsible for child \n\line 236.18 support enforcement, any public agency responsible for the \n\line 236.19 collection of court-ordered restitution, and any public agency \n\line 236.20 established by general or special law that is responsible for \n\line 236.21 the administration of a low-income housing program{\ul , and the} \n\line 236.22 {\ul Minnesota collection enterprise as defined in section 16D.02,} \n\line 236.23 {\ul subdivision 8, for the purpose of collecting the costs imposed} \n\line 236.24 {\ul under section 16D.11}. \n\line 236.25 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 236.26 {\ul following final enactment.} \n\line 236.27 Sec. 7. Minnesota Statutes 2002, section 289A.31, \n\line 236.28 subdivision 3, is amended to read: \n\line 236.29 Subd. 3. [TRANSFEREES AND FIDUCIARIES.] The amounts of the \n\line 236.30 following liabilities are, except as otherwise provided in \n\line 236.31 section 289A.38, subdivision 13, assessed, collected, and paid \n\line 236.32 in the same manner and subject to the same provisions and \n\line 236.33 limitations as a deficiency in a tax imposed by chapter 290, \n\line 236.34 including any provisions of law for the collection of taxes: \n\line 236.35 (1) the liability, at law or in equity, of a transferee of \n\line 236.36 property of a taxpayer for tax {\ul or overpayment of a refund}, \n\line 237.1 including interest, additional amounts, and additions to the tax \n\line 237.2 {\ul or overpayment} provided by law, imposed upon the taxpayer by \n\line 237.3 chapter 290 {\ul or provided for in chapter 290A}; and \n\line 237.4 (2) the liability of a fiduciary under subdivision 4 for \n\line 237.5 the payment of tax from the estate of the taxpayer. The \n\line 237.6 liability may reflect the amount of tax shown on the return or \n\line 237.7 any deficiency in tax. \n\line 237.8 [EFFECTIVE DATE.] {\ul This section is effective for refunds} \n\line 237.9 {\ul paid on or after the day following final enactment.} \n\line 237.10 Sec. 8. Minnesota Statutes 2002, section 289A.31, \n\line 237.11 subdivision 4, is amended to read: \n\line 237.12 Subd. 4. [TAX AS A PERSONAL DEBT OF A FIDUCIARY.] {\strike The} {\ul A} \n\line 237.13 tax imposed by chapter 290 {\ul and an overpayment of a refund} \n\line 237.14 {\ul provided for in chapter 290A}, and interest and penalties, is a \n\line 237.15 personal debt of the taxpayer from the time the liability \n\line 237.16 arises, regardless of when the time for discharging the \n\line 237.17 liability by payment occurs. The debt is, in the case of the \n\line 237.18 personal representative of the estate of a decedent and in the \n\line 237.19 case of any fiduciary, that of the individual in the \n\line 237.20 individual's official or fiduciary capacity only, unless the \n\line 237.21 individual has voluntarily distributed the assets held in that \n\line 237.22 capacity without reserving sufficient assets to pay the tax, \n\line 237.23 interest, and penalties, in which event the individual is \n\line 237.24 personally liable for the deficiency. \n\line 237.25 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 237.26 {\ul imposed and property tax refunds claimed on or after the day} \n\line 237.27 {\ul following final enactment.} \n\line 237.28 Sec. 9. Minnesota Statutes 2002, section 289A.36, \n\line 237.29 subdivision 7, is amended to read: \n\line 237.30 Subd. 7. [APPLICATION TO COURT FOR ENFORCEMENT OF \n\line 237.31 SUBPOENA.] {\ul (a)} Disobedience of subpoenas issued under this \n\line 237.32 section shall be punished by the district court of the district \n\line 237.33 in which the party served with the subpoena is located, in the \n\line 237.34 same manner as contempt of the district court. \n\line 237.35 {\ul (b) Disobedience of a subpoena issued under subdivision 9} \n\line 237.36 {\ul shall be punished by the district court for Ramsey county in the} \n\line 238.1 {\ul same manner as contempt of the district court. In addition to} \n\line 238.2 {\ul contempt remedies, the court may issue any order the court deems} \n\line 238.3 {\ul reasonably necessary to enforce compliance with the subpoena.} \n\line 238.4 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 238.5 {\ul following final enactment.} \n\line 238.6 Sec. 10. Minnesota Statutes 2002, section 289A.36, is \n\line 238.7 amended by adding a subdivision to read: \n\line 238.8 {\ul Subd. 9.} [ACCESS TO RECORDS IN CONNECTION WITH EXAMINATION \n\line 238.9 OF BUSINESSES LOCATED OUTSIDE THE STATE.] {\ul (a) In order to} \n\line 238.10 {\ul determine whether a business located outside the state of} \n\line 238.11 {\ul Minnesota is required to file a return under this chapter, the} \n\line 238.12 {\ul commissioner may examine the relevant records and files of the} \n\line 238.13 {\ul business.} \n\line 238.14 {\ul (b) To the full extent permitted by the Minnesota and} \n\line 238.15 {\ul United States constitutions, the commissioner may compel} \n\line 238.16 {\ul production of those relevant records and files by subpoena. The} \n\line 238.17 {\ul subpoena may be served on the secretary of state along with the} \n\line 238.18 {\ul address to which service of the subpoena is to be sent and a fee} \n\line 238.19 {\ul of $50. The secretary of state shall forward a copy of the} \n\line 238.20 {\ul subpoena to the business using the procedures for service of} \n\line 238.21 {\ul process in section 5.25, subdivision 6.} \n\line 238.22 {\ul (c) The commissioner shall pay the reasonable cost of} \n\line 238.23 {\ul producing records subject to subpoena under this subdivision if:} \n\line 238.24 {\ul (1) the subpoenaed party cannot produce the records without} \n\line 238.25 {\ul undue burden; and} \n\line 238.26 {\ul (2) the examination made pursuant to paragraph (a) shows} \n\line 238.27 {\ul that the subpoenaed party is not required to file a return under} \n\line 238.28 {\ul this chapter.} \n\line 238.29 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 238.30 {\ul following final enactment.} \n\line 238.31 Sec. 11. Minnesota Statutes 2002, section 289A.36, is \n\line 238.32 amended by adding a subdivision to read: \n\line 238.33 {\ul Subd. 10.} [PENALTY.] {\ul In addition to sanctions imposed} \n\line 238.34 {\ul under subdivision 7, a penalty of $250 per day is imposed on any} \n\line 238.35 {\ul business that is in violation of a court order to comply with a} \n\line 238.36 {\ul subpoena that is seeking information necessary for the} \n\line 239.1 {\ul commissioner to be able to determine whether the business is} \n\line 239.2 {\ul required to file a return or pay a tax. The maximum penalty is} \n\line 239.3 {\ul $25,000. Upon the request of the commissioner, the court shall} \n\line 239.4 {\ul determine the amount of the penalty and enter it as a judgment} \n\line 239.5 {\ul in favor of the commissioner. The penalty is not payable until} \n\line 239.6 {\ul the judgment is entered.} \n\line 239.7 [EFFECTIVE DATE.] {\ul This section is effective for violations} \n\line 239.8 {\ul of court orders to enforce subpoenas issued on or after the day} \n\line 239.9 {\ul following final enactment.} \n\line 239.10 Sec. 12. Minnesota Statutes 2002, section 297A.85, is \n\line 239.11 amended to read: \n\line 239.12 297A.85 [CANCELLATION OF PERMITS.] \n\line 239.13 The commissioner may cancel a permit if one of the \n\line 239.14 following conditions occurs: \n\line 239.15 (1) the permit holder has not filed a sales or use tax \n\line 239.16 return for at least one year; \n\line 239.17 (2) the permit holder has not reported any sales or use tax \n\line 239.18 liability on the permit holder's returns for at least two years; \n\line 239.19 {\strike or} \n\line 239.20 (3) the permit holder requests cancellation of the permit{\ul ;} \n\line 239.21 {\ul or} \n\line 239.22 {\ul (4) the permit is subject to cancellation pursuant to} \n\line 239.23 {\ul section 297A.86, subdivision 2, paragraph (a)}. \n\line 239.24 [EFFECTIVE DATE.] {\ul This section is effective for} \n\line 239.25 {\ul cancellations of permits done on or after the day following} \n\line 239.26 {\ul final enactment.} \n\line 239.27 Sec. 13. [REPEALER.] \n\line 239.28 {\ul Minnesota Statutes 2002, section 270.691, subdivision 8, is} \n\line 239.29 {\ul repealed effective the day following final enactment.} \n\line 239.30 ARTICLE 12\n\line 239.31 MISCELLANEOUS\n\line 239.32 Section 1. Minnesota Statutes 2002, section 256.969, is \n\line 239.33 amended by adding a subdivision to read: \n\line 239.34 {\ul Subd. 9c.} [COUNTY BILLING.] {\ul (a) Minnesota hospitals} \n\line 239.35 {\ul located in the metropolitan area defined in section 473.121,} \n\line 239.36 {\ul subdivision 2, that have a disproportionate population} \n\line 240.1 {\ul adjustment greater than ten percent are eligible for a special} \n\line 240.2 {\ul payment for uncompensated care. These hospitals may bill a} \n\line 240.3 {\ul county for services provided to a resident of that county} \n\line 240.4 {\ul provided that:} \n\line 240.5 {\ul (1) the patient is a resident of a county other than the} \n\line 240.6 {\ul county in which the hospital is located. For purposes of this} \n\line 240.7 {\ul section, residence is defined in section 256G.02, subdivision 8;} \n\line 240.8 {\ul and} \n\line 240.9 {\ul (2) the patient was uninsured at the time of service and} \n\line 240.10 {\ul has an income below 250 percent of the federal poverty} \n\line 240.11 {\ul guidelines.} \n\line 240.12 {\ul (b) Counties that are billed under this subdivision must} \n\line 240.13 {\ul pay eligible hospitals at a rate equal to the cost of the care} \n\line 240.14 {\ul provided. The cost of care shall be established using the} \n\line 240.15 {\ul hospital's stated charges, adjusted to cost using the} \n\line 240.16 {\ul cost-to-charge ratio established by the state. For purposes of} \n\line 240.17 {\ul prompt payment, section 471.425, subdivisions 2 and 4, shall} \n\line 240.18 {\ul apply. In the event of nonpayment, the hospital shall have a} \n\line 240.19 {\ul cause of action against the county and shall be entitled to} \n\line 240.20 {\ul collection expenses incurred, including attorney fees.} \n\line 240.21 {\ul (c) The county of residence shall be the payer of last} \n\line 240.22 {\ul resort. If third-party payments are received by a participating} \n\line 240.23 {\ul hospital for services rendered after payment has been made by} \n\line 240.24 {\ul the county of residence, the participating hospital shall} \n\line 240.25 {\ul reimburse the county of residence for payments made to the} \n\line 240.26 {\ul hospital for covered services, at the rates originally paid by} \n\line 240.27 {\ul the county of residence.} \n\line 240.28 Sec. 2. Minnesota Statutes 2002, section 270.60, \n\line 240.29 subdivision 4, is amended to read: \n\line 240.30 Subd. 4. [PAYMENTS TO COUNTIES.] (a) The commissioner \n\line 240.31 shall pay to a county in which an Indian gaming casino is \n\line 240.32 located{\ul :} \n\line 240.33 {\ul (1)} ten percent of the state share of all taxes generated \n\line 240.34 from activities on reservations and collected under a tax \n\line 240.35 agreement under this section with the tribal government for the \n\line 240.36 reservation located in the county{\ul ; or} \n\line 241.1 {\ul (2) five percent of excise taxes collected by the state} \n\line 241.2 {\ul that are determined by the department of revenue to have been} \n\line 241.3 {\ul generated from activities on a reservation located in the} \n\line 241.4 {\ul county, the tribal government of which has not entered into a} \n\line 241.5 {\ul tax agreement under this section}. \n\line 241.6 If the tribe has casinos located in more than one county, \n\line 241.7 the payment must be divided equally among the counties in which \n\line 241.8 the casinos are located. \n\line 241.9 (b) The commissioner shall make the payments required under \n\line 241.10 this subdivision by February 28 of the year following the year \n\line 241.11 the taxes are collected. \n\line 241.12 (c) An amount sufficient to make the payments authorized by \n\line 241.13 this subdivision is annually appropriated from the general fund \n\line 241.14 to the commissioner. \n\line 241.15 [EFFECTIVE DATE.] {\ul This section is effective for taxes} \n\line 241.16 {\ul collected after June 30, 2003.} \n\line 241.17 Sec. 3. [280A.01] [DEFINITIONS.] \n\line 241.18 {\ul Subdivision 1.} [APPLICATION.] {\ul For purposes of this} \n\line 241.19 {\ul chapter, the following terms have the meanings given.} \n\line 241.20 {\ul Subd. 2.} [FACE AMOUNT.] {\ul The "face amount of the tax lien"} \n\line 241.21 {\ul or "face amount" means the sum of the following amounts:} \n\line 241.22 {\ul (1) the unpaid real property taxes and assessments;} \n\line 241.23 {\ul (2) penalties;} \n\line 241.24 {\ul (3) fees and costs, including the allocable costs of any} \n\line 241.25 {\ul publications made and notices given by the joint powers agency} \n\line 241.26 {\ul under section 280A.04, subdivision 2; and} \n\line 241.27 {\ul (4) interest accrued on amounts listed in clauses (1) to} \n\line 241.28 {\ul (3) at the applicable statutory rate through the date of sale of} \n\line 241.29 {\ul the tax lien.} \n\line 241.30 {\ul Subd. 3.} [TAXING AUTHORITY.] {\ul "Taxing authority" is a} \n\line 241.31 {\ul county or joint powers agency with a population of 500,000 or} \n\line 241.32 {\ul more.} \n\line 241.33 {\ul Subd. 4.} [TREASURER.] {\ul "Treasurer" means the county} \n\line 241.34 {\ul treasurer or the equivalent officer of another taxing authority} \n\line 241.35 {\ul or a designee of the treasurer or other officer.} \n\line 241.36 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 242.1 {\ul following final enactment and expires on June 30, 2005.} \n\line 242.2 Sec. 4. [280A.02] [AUTHORITY TO SELL TAX LIENS.] \n\line 242.3 {\ul Subdivision 1.} [GENERAL AUTHORITY.] {\ul (a) As provided in} \n\line 242.4 {\ul this chapter, a taxing authority may sell its allocable portion} \n\line 242.5 {\ul of tax liens securing delinquent real property taxes and} \n\line 242.6 {\ul assessments or other charges that are made a lien on real} \n\line 242.7 {\ul property for the benefit of the taxing authority. The allocable} \n\line 242.8 {\ul portion of a tax lien is for all purposes itself a "tax lien"} \n\line 242.9 {\ul for purposes of this chapter. A taxing authority may not sell} \n\line 242.10 {\ul any tax lien for which the taxes secured by the tax lien are} \n\line 242.11 {\ul subject to a proceeding under chapter 278 that has not been} \n\line 242.12 {\ul dismissed or otherwise terminated.} \n\line 242.13 {\ul Subd. 2.} [COUNTY ACTION; EFFECT.] {\ul A county may sell the} \n\line 242.14 {\ul tax liens of all of the taxing authorities having a tax lien on} \n\line 242.15 {\ul a property. In such case, whenever this chapter requires or} \n\line 242.16 {\ul permits a taxing authority to take action, the taking of that} \n\line 242.17 {\ul action by the county is deemed to be the taking of that action} \n\line 242.18 {\ul by and on behalf of each of the participating taxing authorities.}\n\line 242.19 {\ul Subd. 3.} [AMOUNT OF LIEN; PARTIAL PAYMENTS.] {\ul (a) The} \n\line 242.20 {\ul amount of a tax lien sold under this chapter equals the face} \n\line 242.21 {\ul amount of the tax lien.} \n\line 242.22 {\ul (b) Any partial payments received on a tax lien are applied} \n\line 242.23 {\ul first to accrued interest and then to the face amount of the tax} \n\line 242.24 {\ul lien.} \n\line 242.25 {\ul Subd. 4.} [NOT A BORROWING.] {\ul A sale of a tax lien or tax} \n\line 242.26 {\ul liens by a taxing authority under this chapter is a sale and is} \n\line 242.27 {\ul not a borrowing by the taxing authority.} \n\line 242.28 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 242.29 {\ul following final enactment and expires on June 30, 2005.} \n\line 242.30 Sec. 5. [280A.03] [PROCEDURES FOR SALE OF TAX LIENS.] \n\line 242.31 {\ul Subdivision 1.} [SALE TO JOINT POWER AGENCY.] {\ul A taxing} \n\line 242.32 {\ul authority may, from time to time, sell all or a portion of its} \n\line 242.33 {\ul then delinquent tax liens through a negotiated sale under the} \n\line 242.34 {\ul procedures provided in this chapter to a joint powers agency} \n\line 242.35 {\ul organized by two or more counties under section 471.59. A} \n\line 242.36 {\ul taxing authority selling tax liens to a joint powers agency need} \n\line 243.1 {\ul not be a member of the joint powers agency. A joint powers} \n\line 243.2 {\ul agency formed to purchase and sell tax liens under this chapter} \n\line 243.3 {\ul is deemed to be exercising common powers of its member counties} \n\line 243.4 {\ul for purposes of section 471.59.} \n\line 243.5 {\ul Subd. 2.} [TERMS OF AGREEMENT.] {\ul A taxing authority may} \n\line 243.6 {\ul enter into a purchase and sale agreement with a joint powers} \n\line 243.7 {\ul agency for the sale of tax liens by the taxing authority to the} \n\line 243.8 {\ul joint powers agency. The taxing authority may include in the} \n\line 243.9 {\ul agreement the terms, provisions, conditions, representations,} \n\line 243.10 {\ul and warranties that it determines are necessary or desirable and} \n\line 243.11 {\ul are consistent with the provisions of this chapter. The} \n\line 243.12 {\ul agreement must specify the purchase price of the tax liens to be} \n\line 243.13 {\ul paid to the taxing authority and any other amounts that may be} \n\line 243.14 {\ul made available to the taxing authority on a contingent basis} \n\line 243.15 {\ul under the terms of the agreement. The purchase price may be} \n\line 243.16 {\ul more or less than the face amount of the tax liens purchased by} \n\line 243.17 {\ul the joint powers agency.} \n\line 243.18 {\ul Subd. 3.} [NOTICE OF SALE.] {\ul Ninety days before a taxing} \n\line 243.19 {\ul authority sells a tax lien to a joint powers agency, the taxing} \n\line 243.20 {\ul authority shall notify all owners of record of the property that} \n\line 243.21 {\ul is subject to the lien, that the authority intends to sell the} \n\line 243.22 {\ul lien. The notice must advise the property owner the amount of} \n\line 243.23 {\ul the taxes, penalties, interest, and any other amounts owed on} \n\line 243.24 {\ul the tax lien; how the property owner can pay the delinquent} \n\line 243.25 {\ul taxes to the taxing authority; that the taxing authority intends} \n\line 243.26 {\ul to sell the lien; the consequences to the property owner if the} \n\line 243.27 {\ul lien is sold; and a statement of the rights, obligations, and} \n\line 243.28 {\ul remedies of the property owner.} \n\line 243.29 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 243.30 {\ul following final enactment and expires on June 30, 2005.} \n\line 243.31 Sec. 6. [280A.04] [SALES OF TAX LIENS BY JOINT POWERS \n\line 243.32 AGENCY.] \n\line 243.33 {\ul Subdivision 1.} [BULK SALE.] {\ul A joint powers agency} \n\line 243.34 {\ul organized for the purposes of this chapter may sell tax liens in} \n\line 243.35 {\ul bulk through a negotiated sale under the procedures provided in} \n\line 243.36 {\ul this section. The joint powers agency shall establish the terms} \n\line 244.1 {\ul and conditions of a sale of tax liens. No provision of law that} \n\line 244.2 {\ul requires competitive bidding relating to the letting of} \n\line 244.3 {\ul government contracts applies to the sale of tax liens by a joint} \n\line 244.4 {\ul powers agency.} \n\line 244.5 {\ul Subd. 2.} [NOTICE OF SALE.] {\ul The joint powers agency shall} \n\line 244.6 {\ul publish a notice of its intention to sell a tax lien or tax} \n\line 244.7 {\ul liens through a negotiated sale. The notice must advise that a} \n\line 244.8 {\ul request for statements of interest is available at the office of} \n\line 244.9 {\ul the joint powers agency, and may require the submission of any} \n\line 244.10 {\ul information or documents that the joint powers agency deems} \n\line 244.11 {\ul appropriate. The notice must identify separately the tax liens} \n\line 244.12 {\ul intended to be sold, the number and aggregate amount of the tax} \n\line 244.13 {\ul liens and state that a copy of a list of the tax liens may be} \n\line 244.14 {\ul obtained from the office of the joint powers agency upon} \n\line 244.15 {\ul request. The notice must be published in a newspaper of general} \n\line 244.16 {\ul circulation in the taxing authority not less than 30 days prior} \n\line 244.17 {\ul to the date designated by the joint powers agency for the} \n\line 244.18 {\ul receipt of statements of interest.} \n\line 244.19 {\ul Subd. 3.} [AWARD OF SALE.] {\ul Notwithstanding any other law to} \n\line 244.20 {\ul the contrary, in order to determine whether or not to award a} \n\line 244.21 {\ul sale of tax liens and to determine to whom to award a sale of} \n\line 244.22 {\ul tax liens, the joint powers agency may consider all factors that} \n\line 244.23 {\ul the governing body of the joint powers agency deems relevant to} \n\line 244.24 {\ul the best interests of the taxing authorities from which the tax} \n\line 244.25 {\ul liens are to be purchased, including but not limited to the} \n\line 244.26 {\ul price at which the tax liens are offered to be purchased, as} \n\line 244.27 {\ul well as the terms and conditions of the purchase and sale} \n\line 244.28 {\ul agreements proposed by the prospective purchasers. The joint} \n\line 244.29 {\ul powers agency may negotiate with one or more prospective} \n\line 244.30 {\ul purchasers to determine the terms and conditions under which tax} \n\line 244.31 {\ul liens are proposed to be purchased.} \n\line 244.32 {\ul Subd. 4.} [TERMS OF AGREEMENT.] {\ul The joint powers agency may} \n\line 244.33 {\ul enter into one or more purchase and sale agreements for the sale} \n\line 244.34 {\ul of tax liens by the joint powers agency. The agency may include} \n\line 244.35 {\ul in the agreements the terms, provisions, conditions,} \n\line 244.36 {\ul representations, and warranties it determines are necessary or} \n\line 245.1 {\ul desirable and are consistent with the provisions of this} \n\line 245.2 {\ul chapter. Each agreement must specify the purchase price to be} \n\line 245.3 {\ul paid to the joint powers agency and any other amounts that may} \n\line 245.4 {\ul be made available to the joint powers agency on a contingent} \n\line 245.5 {\ul basis under the terms of the agreement. The purchase price may} \n\line 245.6 {\ul be more or less than the face amount of the tax liens purchased} \n\line 245.7 {\ul by the tax lien purchaser and may include noncash} \n\line 245.8 {\ul consideration. In connection with the sale of the tax liens} \n\line 245.9 {\ul under the agreement, the joint powers agency may assign to the} \n\line 245.10 {\ul tax lien purchaser all of its right, title, and interest in and} \n\line 245.11 {\ul to the purchase and sale agreement or agreements between the} \n\line 245.12 {\ul joint powers agency and the counties from which the tax liens} \n\line 245.13 {\ul were purchased by the joint powers agency.} \n\line 245.14 {\ul Subd. 5.} [AUTHORITY TO CANCEL.] {\ul The joint powers agency} \n\line 245.15 {\ul may postpone or cancel any proposed sale of tax liens for which} \n\line 245.16 {\ul notice has been published. The joint powers agency is not} \n\line 245.17 {\ul liable for any damages as a result of cancellation or} \n\line 245.18 {\ul postponement of a proposed sale of tax liens, nor does any cause} \n\line 245.19 {\ul of action arise from a cancellation or postponement.} \n\line 245.20 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 245.21 {\ul following final enactment and expires on June 30, 2005.} \n\line 245.22 Sec. 7. [280A.05] [TAX LIEN CERTIFICATES.] \n\line 245.23 {\ul Subdivision 1.} [OPERATION.] {\ul (a) Upon the sale by a taxing} \n\line 245.24 {\ul authority of a tax lien to a joint powers agency, the county} \n\line 245.25 {\ul auditor or the treasurer shall deliver to the joint powers} \n\line 245.26 {\ul agency a tax lien certificate evidencing the sale and the} \n\line 245.27 {\ul transfer of the tax lien by the taxing authority to the joint} \n\line 245.28 {\ul powers agency.} \n\line 245.29 {\ul (b) A tax lien certificate operates to transfer and assign} \n\line 245.30 {\ul the tax lien upon the property described in the certificate for:} \n\line 245.31 {\ul (1) the unpaid real property taxes and assessments;} \n\line 245.32 {\ul (2) other fees and costs, including the costs of any} \n\line 245.33 {\ul publications made and notices given under section 280A.04,} \n\line 245.34 {\ul subdivision 2;} \n\line 245.35 {\ul (3) all interest and penalties accrued on the tax lien} \n\line 245.36 {\ul through the date of sale; and} \n\line 246.1 {\ul (4) accrued interest on all unpaid amounts from the date of} \n\line 246.2 {\ul sale to the date of payment.} \n\line 246.3 {\ul (c) The county auditor or treasurer shall keep a record of} \n\line 246.4 {\ul all tax liens transferred as provided by this section.} \n\line 246.5 {\ul Subd. 2.} [CONTENTS.] {\ul (a) A tax lien certificate must} \n\line 246.6 {\ul contain:} \n\line 246.7 {\ul (1) a transfer and assignment by the taxing authority of} \n\line 246.8 {\ul the tax lien sold to the joint powers agency;} \n\line 246.9 {\ul (2) the date of the sale;} \n\line 246.10 {\ul (3) the aggregate amount of the tax lien transferred and} \n\line 246.11 {\ul the items of unpaid real property taxes and assessments and} \n\line 246.12 {\ul other charges;} \n\line 246.13 {\ul (4) the costs of any publications made and notices given} \n\line 246.14 {\ul under this chapter;} \n\line 246.15 {\ul (5) all interest and penalties accrued on the tax lien} \n\line 246.16 {\ul through the date of sale comprising the tax lien;} \n\line 246.17 {\ul (6) a statement that the tax lien certificate will bear} \n\line 246.18 {\ul interest at the rate specified in section 279.03, subdivision} \n\line 246.19 {\ul 1a; and} \n\line 246.20 {\ul (7) a description of the property by block and lot or by} \n\line 246.21 {\ul such other identification sufficient to identify the property} \n\line 246.22 {\ul subject to the tax lien.} \n\line 246.23 {\ul (b) The treasurer shall, by manual or facsimile signature:} \n\line 246.24 {\ul (1) execute a tax lien certificate; and} \n\line 246.25 {\ul (2) acknowledge the certificate in the manner in which a} \n\line 246.26 {\ul deed must be acknowledged to be recorded.} \n\line 246.27 {\ul (c) A tax lien certificate may evidence the transfer of} \n\line 246.28 {\ul more than one tax lien on more than one property.} \n\line 246.29 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 246.30 {\ul following final enactment and expires on June 30, 2005.} \n\line 246.31 Sec. 8. [280A.06] [LOST TAX LIEN CERTIFICATE.] \n\line 246.32 {\ul If any tax lien certificate is lost, the treasurer may,} \n\line 246.33 {\ul upon satisfactory proof of the loss, direct the execution and} \n\line 246.34 {\ul delivery of a duplicate certificate to the person or persons who} \n\line 246.35 {\ul appear entitled to the certificate. The treasurer may require a} \n\line 246.36 {\ul bond of indemnity to the taxing authority as a condition of} \n\line 247.1 {\ul executing a duplicate certificate.} \n\line 247.2 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 247.3 {\ul following final enactment and expires on June 30, 2005.} \n\line 247.4 Sec. 9. [280A.07] [RECORDING OF TAX LIEN CERTIFICATES.] \n\line 247.5 {\ul A tax lien certificate and any assignment or discharge of a} \n\line 247.6 {\ul certificate, duly acknowledged, are deemed conveyances within} \n\line 247.7 {\ul the meaning of section 507.01 and may be recorded (in the case} \n\line 247.8 {\ul of unregistered real estate) in the office of the county} \n\line 247.9 {\ul recorder of the county where the property is located or} \n\line 247.10 {\ul registered (in the case of registered real estate) in the office} \n\line 247.11 {\ul of the registrar of titles of the county where the property is} \n\line 247.12 {\ul located under section 508.55. Tax lien certificates and all} \n\line 247.13 {\ul assignments and discharges of certificates must be recorded by} \n\line 247.14 {\ul the county recorder or registered by the registrar of titles in} \n\line 247.15 {\ul the same manner as mortgages and assignments and discharges of} \n\line 247.16 {\ul mortgages. Notwithstanding section 272.12, the county recorder} \n\line 247.17 {\ul or the registrar of titles shall not refuse to receive or record} \n\line 247.18 {\ul a tax lien certificate and any assignment or discharge of a} \n\line 247.19 {\ul certificate because of any outstanding delinquent taxes due on} \n\line 247.20 {\ul the related property. Notwithstanding section 507.34, neither} \n\line 247.21 {\ul the tax lien nor the rights transferred or created by a tax lien} \n\line 247.22 {\ul certificate is impaired by the failure of the county recorder or} \n\line 247.23 {\ul registrar of titles to record or register a tax lien certificate} \n\line 247.24 {\ul made by the county through the treasurer.} \n\line 247.25 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 247.26 {\ul following final enactment and expires on June 30, 2005.} \n\line 247.27 Sec. 10. [280A.08] [RIGHTS OF HOLDER OF TAX LIEN \n\line 247.28 CERTIFICATE; DISCHARGE OF TAX LIEN.] \n\line 247.29 {\ul Subdivision 1.} [RIGHTS OF LIENHOLDER.] {\ul A holder of a tax} \n\line 247.30 {\ul lien under a tax lien certificate has the right to receive all} \n\line 247.31 {\ul amounts collected by the county or the taxing authority in} \n\line 247.32 {\ul payment of amounts due on the tax lien, including all payments} \n\line 247.33 {\ul of the unpaid real property taxes, assessments, penalties, and} \n\line 247.34 {\ul costs, plus interest accrued on those amounts to the date of} \n\line 247.35 {\ul payment of the tax lien in full. The treasurer of the county in} \n\line 247.36 {\ul which any property encumbered by a tax lien transferred under} \n\line 248.1 {\ul this chapter and recorded as provided in section 280A.07 shall} \n\line 248.2 {\ul pay to the holder of the tax lien certificate or its designee} \n\line 248.3 {\ul designated in writing promptly upon receipt any payments made on} \n\line 248.4 {\ul a tax lien. Any person having a legal or beneficial interest in} \n\line 248.5 {\ul the property affected by a tax lien certificate may satisfy it} \n\line 248.6 {\ul at any time upon payment of the amounts then due, including all} \n\line 248.7 {\ul accrued interest on the lien. Upon satisfaction of the tax} \n\line 248.8 {\ul lien, the holder shall issue to the person that satisfied the} \n\line 248.9 {\ul tax lien a certificate of discharge, certifying that the tax} \n\line 248.10 {\ul lien has been paid or has been otherwise satisfied, in a} \n\line 248.11 {\ul recordable or registrable form approved by the county recorder} \n\line 248.12 {\ul of the county where the property is located.} \n\line 248.13 {\ul Subd. 2.} [DISCHARGE OF LIEN.] {\ul A tax lien sold under this} \n\line 248.14 {\ul chapter may be discharged by presenting the certificate of} \n\line 248.15 {\ul discharge issued by the holder of the tax lien under subdivision} \n\line 248.16 {\ul 1 to the county recorder or registrar of titles of the county} \n\line 248.17 {\ul where the property is located.} \n\line 248.18 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 248.19 {\ul following final enactment and expires on June 30, 2005.} \n\line 248.20 Sec. 11. [280A.09] [EXEMPTION FROM TAXATION.] \n\line 248.21 {\ul Notwithstanding any other law to the contrary, tax liens} \n\line 248.22 {\ul and tax lien certificates are exempt from taxation by the state} \n\line 248.23 {\ul or any political subdivision of the state, including the} \n\line 248.24 {\ul mortgage registry taxes imposed by chapter 287 but excluding the} \n\line 248.25 {\ul recording fees imposed by chapter 357. This section does not} \n\line 248.26 {\ul exempt the real property affected by any tax lien, or the} \n\line 248.27 {\ul interest paid on the tax lien, from taxation.} \n\line 248.28 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 248.29 {\ul following final enactment and expires on June 30, 2005.} \n\line 248.30 Sec. 12. [280A.10] [FORECLOSURE OF TAX LIENS.] \n\line 248.31 {\ul (a) If the amount of any tax lien transferred by a tax lien} \n\line 248.32 {\ul certificate is not paid by the later of the date of expiration} \n\line 248.33 {\ul of the applicable redemption period specified in chapter 281 or} \n\line 248.34 {\ul the expiration of a confession of judgment entered into under} \n\line 248.35 {\ul section 279.37, the tax lien may be foreclosed by advertisement} \n\line 248.36 {\ul in the same manner as a mortgage as provided in chapter 580,} \n\line 249.1 {\ul except that the following rules apply:} \n\line 249.2 {\ul (1) the property owner is deemed to be the mortgagor, the} \n\line 249.3 {\ul tax lien certificate holder is deemed to be the mortgagee, and} \n\line 249.4 {\ul the tax lien certificate is deemed to be the mortgage note and} \n\line 249.5 {\ul mortgage;} \n\line 249.6 {\ul (2) the tax lien certificate is deemed to contain a power} \n\line 249.7 {\ul of sale and the failure of the property owner to redeem the tax} \n\line 249.8 {\ul lien is deemed to be a default by which the power of sale has} \n\line 249.9 {\ul become operative; and} \n\line 249.10 {\ul (3) notwithstanding section 582.01 or any other law to the} \n\line 249.11 {\ul contrary, the tax lien certificate holder may recover from the} \n\line 249.12 {\ul proceeds of foreclosure reasonable attorney fees and} \n\line 249.13 {\ul disbursements relating to the foreclosure, together with the} \n\line 249.14 {\ul expenses of the sale.} \n\line 249.15 {\ul (b) In any conflict between this chapter and any other law} \n\line 249.16 {\ul relating to the foreclosure of mortgages, this chapter has} \n\line 249.17 {\ul precedence over the other law.} \n\line 249.18 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 249.19 {\ul following final enactment and expires on June 30, 2005.} \n\line 249.20 Sec. 13. [280A.11] [REDEMPTION.] \n\line 249.21 {\ul Subdivision 1.} [NOTICE OF EXPIRATION OF REDEMPTION \n\line 249.22 PERIOD.] {\ul The provisions of chapter 281 relating to the} \n\line 249.23 {\ul redemption of tax liens sold under this chapter continue to} \n\line 249.24 {\ul apply to tax liens sold under this chapter. The county auditor} \n\line 249.25 {\ul shall give notice of the expiration of the applicable redemption} \n\line 249.26 {\ul period of any tax lien sold under this chapter in the same} \n\line 249.27 {\ul manner as provided for tax-forfeited property under chapter 281.} \n\line 249.28 {\ul Subd. 2.} [LIMITATIONS ON ADVERSE CLAIMS.] {\ul No cause of} \n\line 249.29 {\ul action or defense claiming that any tax lien certificate or tax} \n\line 249.30 {\ul lien is invalid may be asserted or maintained upon any claim} \n\line 249.31 {\ul adverse to the holder of the tax lien certificate or the} \n\line 249.32 {\ul holder's successors in interest, including but not limited to} \n\line 249.33 {\ul any claim based upon any failure, omission, error, or defect} \n\line 249.34 {\ul described in section 284.28, subdivision 1, unless the cause of} \n\line 249.35 {\ul action or defense is asserted in an action commenced before the} \n\line 249.36 {\ul expiration of the time for redemption, as provided by section} \n\line 250.1 {\ul 281.21, or by any other law hereafter enacted providing for} \n\line 250.2 {\ul notice of expiration of time for redemption and the filing} \n\line 250.3 {\ul thereof.} \n\line 250.4 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 250.5 {\ul following final enactment and expires on June 30, 2005.} \n\line 250.6 Sec. 14. [280A.12] [PRIORITY AND PAYMENT OF TAX LIENS; \n\line 250.7 EFFECT OF FORFEITURE TO STATE.] \n\line 250.8 {\ul Notwithstanding section 280.39 or any other law to the} \n\line 250.9 {\ul contrary, if more than one tax lien is entitled to foreclosure} \n\line 250.10 {\ul under this chapter on a parcel of real property, all the tax} \n\line 250.11 {\ul liens rank on a parity. After the payment of all legal fees and} \n\line 250.12 {\ul costs, allowances, and disbursements relating to the} \n\line 250.13 {\ul foreclosure, the holders of all the tax liens must be paid from} \n\line 250.14 {\ul the proceeds of the sale, so far as the proceeds suffice to pay} \n\line 250.15 {\ul the same, the amounts of their respective tax liens in the ratio} \n\line 250.16 {\ul to which the amount of the tax lien of each holder bears to the} \n\line 250.17 {\ul aggregate of all the amounts. All tax liens foreclosed upon in} \n\line 250.18 {\ul a foreclosure sale have priority over any other lien on the} \n\line 250.19 {\ul property sold in foreclosure regardless as to when the other} \n\line 250.20 {\ul lien became a lien on the property.} \n\line 250.21 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 250.22 {\ul following final enactment and expires on June 30, 2005.} \n\line 250.23 Sec. 15. Minnesota Statutes 2002, section 287.12, is \n\line 250.24 amended to read: \n\line 250.25 287.12 [TAXES, HOW APPORTIONED.] \n\line 250.26 (a) All taxes paid to the county treasurer under the \n\line 250.27 provisions of sections 287.01 to 287.12 must be apportioned, 97 \n\line 250.28 percent to the general fund of the state, and three percent to \n\line 250.29 the county revenue fund. \n\line 250.30 (b) On or before the 20th day of each month the county \n\line 250.31 treasurer shall determine and pay to the commissioner of revenue \n\line 250.32 for deposit in the state treasury and credit to the general fund \n\line 250.33 the state's portion of the receipts from the mortgage registry \n\line 250.34 tax during the preceding month subject to the electronic payment \n\line 250.35 requirements of section 270.771. The county treasurer shall \n\line 250.36 provide any related reports requested by the commissioner of \n\line 251.1 revenue. \n\line 251.2 {\ul (c) Counties must remit 81 percent of the state's portion} \n\line 251.3 {\ul of the June receipts collected through June 25 and the estimated} \n\line 251.4 {\ul state's portion of the receipts to be collected during the} \n\line 251.5 {\ul remainder of the month to the commissioner of revenue two} \n\line 251.6 {\ul business days before June 30 of each year. The remaining amount} \n\line 251.7 {\ul of the June receipts is due on August 20.} \n\line 251.8 [EFFECTIVE DATE.] {\ul This section is effective January 1, 2004.}\n\line 251.9 Sec. 16. Minnesota Statutes 2002, section 287.29, \n\line 251.10 subdivision 1, is amended to read: \n\line 251.11 Subdivision 1. [APPOINTMENT AND PAYMENT OF TAX PROCEEDS.] \n\line 251.12 (a) The proceeds of the taxes levied and collected under \n\line 251.13 sections 287.21 to 287.39 must be apportioned, 97 percent to the \n\line 251.14 general fund of the state, and three percent to the county \n\line 251.15 revenue fund. \n\line 251.16 (b) On or before the 20th day of each month, the county \n\line 251.17 treasurer shall determine and pay to the commissioner of revenue \n\line 251.18 for deposit in the state treasury and credit to the general fund \n\line 251.19 the state's portion of the receipts for deed tax from the \n\line 251.20 preceding month subject to the electronic transfer requirements \n\line 251.21 of section 270.771. The county treasurer shall provide any \n\line 251.22 related reports requested by the commissioner of revenue. \n\line 251.23 {\ul (c) Counties must remit 81 percent of the state's portion} \n\line 251.24 {\ul of the June receipts collected through June 25 and the estimated} \n\line 251.25 {\ul state's portion of the receipts to be collected during the} \n\line 251.26 {\ul remainder of the month to the commissioner of revenue two} \n\line 251.27 {\ul business days before June 30 of each year. The remaining amount} \n\line 251.28 {\ul of the June receipts is due on August 20.} \n\line 251.29 [EFFECTIVE DATE.] {\ul This section is effective January 1, 2004.}\n\line 251.30 Sec. 17. Minnesota Statutes 2002, section 287.31, is \n\line 251.31 amended by adding a subdivision to read: \n\line 251.32 {\ul Subd. 3.} [UNDERPAYMENTS OF ACCELERATED PAYMENT OF JUNE TAX \n\line 251.33 RECEIPTS.] {\ul If a county fails to timely remit the specified} \n\line 251.34 {\ul percentage of the state portion of the actual June tax receipts} \n\line 251.35 {\ul at the time required by section 287.12 or 287.29, the county} \n\line 251.36 {\ul shall pay a penalty equal to ten percent of the state portion of} \n\line 252.1 {\ul actual June receipts less the amount remitted to the} \n\line 252.2 {\ul commissioner of revenue in June. The penalty must not be} \n\line 252.3 {\ul imposed, however, if the amount remitted in June equals either:} \n\line 252.4 {\ul (1) 75 percent of the state's portion of the preceding} \n\line 252.5 {\ul May's receipts; or} \n\line 252.6 {\ul (2) 75 percent of the average monthly amount of the state's} \n\line 252.7 {\ul portion for the previous calendar year.} \n\line 252.8 [EFFECTIVE DATE.] {\ul This section is effective January 1, 2004.}\n\line 252.9 Sec. 18. Minnesota Statutes 2002, section 297F.08, is \n\line 252.10 amended by adding a subdivision to read: \n\line 252.11 {\ul Subd. 12.} [CIGARETTES IN INTERSTATE COMMERCE.] {\ul (a) A} \n\line 252.12 {\ul person may not transport or cause to be transported from this} \n\line 252.13 {\ul state cigarettes for sale in another state without first} \n\line 252.14 {\ul affixing to the cigarettes the stamp required by the state in} \n\line 252.15 {\ul which the cigarettes are to be sold or paying any other excise} \n\line 252.16 {\ul tax on the cigarettes imposed by the state in which the} \n\line 252.17 {\ul cigarettes are to be sold.} \n\line 252.18 {\ul (b) A person may not affix to cigarettes the stamp required} \n\line 252.19 {\ul by another state or pay any other excise tax on the cigarettes} \n\line 252.20 {\ul imposed by another state if the other state prohibits stamps} \n\line 252.21 {\ul from being affixed to the cigarettes, prohibits the payment of} \n\line 252.22 {\ul any other excise tax on the cigarettes, or prohibits the sale of} \n\line 252.23 {\ul the cigarettes.} \n\line 252.24 {\ul (c) Not later than 15 days after the end of each calendar} \n\line 252.25 {\ul quarter, a person who transports or causes to be transported} \n\line 252.26 {\ul from this state cigarettes for sale in another state shall} \n\line 252.27 {\ul submit to the commissioner a report identifying the quantity and} \n\line 252.28 {\ul style of each brand of the cigarettes transported or caused to} \n\line 252.29 {\ul be transported in the preceding calendar quarter, and the name} \n\line 252.30 {\ul and address of each recipient of the cigarettes.} \n\line 252.31 [EFFECTIVE DATE.] {\ul This section is effective the day} \n\line 252.32 {\ul following final enactment.} \n\line 252.33 Sec. 19. Minnesota Statutes 2002, section 297G.01, is \n\line 252.34 amended by adding a subdivision to read: \n\line 252.35 {\ul Subd. 21.} [LOW-ALCOHOL DAIRY COCKTAIL.] {\ul "Low-alcohol dairy} \n\line 252.36 {\ul cocktail" means a premixed cocktail, or any other product except} \n\line 253.1 {\ul liqueur-filled candy, that:} \n\line 253.2 {\ul (1) consists primarily of milk products;} \n\line 253.3 {\ul (2) contains distilled spirits;} \n\line 253.4 {\ul (3) is drinkable as a beverage or is promoted as an} \n\line 253.5 {\ul alcoholic product; and} \n\line 253.6 {\ul (4) contains less than 3.2 percent alcohol by volume.} \n\line 253.7 [EFFECTIVE DATE.] {\ul This section is effective for sales made} \n\line 253.8 {\ul after June 30, 2003.} \n\line 253.9 Sec. 20. Minnesota Statutes 2002, section 297G.03, \n\line 253.10 subdivision 1, is amended to read: \n\line 253.11 Subdivision 1. [GENERAL RATE; DISTILLED SPIRITS AND WINE.] \n\line 253.12 The following excise tax is imposed on all distilled spirits and \n\line 253.13 wine manufactured, imported, sold, or possessed in this state: \n\line 253.14 Standard Metric\n\line 253.15 (a) Distilled spirits, $5.03 per gallon $1.33 per liter\n\line 253.16 liqueurs, cordials, \n\line 253.17 and specialties regardless \n\line 253.18 of alcohol content \n\line 253.19 (excluding ethyl alcohol) \n\line 253.20 (b) Wine containing $ .30 per gallon $ .08 per liter \n\line 253.21 14 percent or less\n\line 253.22 alcohol by volume \n\line 253.23 (except cider as defined \n\line 253.24 in section 297G.01, \n\line 253.25 subdivision 3a) \n\line 253.26 (c) Wine containing $ .95 per gallon $ .25 per liter\n\line 253.27 more than 14 percent \n\line 253.28 but not more than 21\n\line 253.29 percent alcohol by volume \n\line 253.30 (d) Wine containing more $1.82 per gallon $ .48 per liter\n\line 253.31 than 21 percent but not \n\line 253.32 more than 24 percent\n\line 253.33 alcohol by volume \n\line 253.34 (e) Wine containing more $3.52 per gallon $ .93 per liter\n\line 253.35 than 24 percent alcohol\n\line 253.36 by volume\n\line 254.1 (f) Natural and $1.82 per gallon $ .48 per liter\n\line 254.2 artificial sparkling wines\n\line 254.3 containing alcohol \n\line 254.4 (g) Cider as defined in $ .15 per gallon $ .04 per liter\n\line 254.5 section 297G.01,\n\line 254.6 subdivision 3a\n\line 254.7 {\ul (h) Low alcohol dairy} {\ul $ .08 per gallon} {\ul $ .02 per liter}\n\line 254.8 {\ul cocktails}\n\line 254.9 In computing the tax on a package of distilled spirits or \n\line 254.10 wine, a proportional tax at a like rate on all fractional parts \n\line 254.11 of a gallon or liter must be paid, except that the tax on a \n\line 254.12 fractional part of a gallon less than 1/16 of a gallon is the \n\line 254.13 same as for 1/16 of a gallon. \n\line 254.14 [EFFECTIVE DATE.] {\ul This section is effective for sales made} \n\line 254.15 {\ul after June 30, 2003.} \n\line 254.16 Sec. 21. Minnesota Statutes 2002, section 473F.08, is \n\line 254.17 amended by adding a subdivision to read: \n\line 254.18 {\ul Subd. 3c.} [CHARITY CARE REIMBURSEMENT.] {\ul (a) As used in} \n\line 254.19 {\ul this subdivision, the following terms have the meanings given in} \n\line 254.20 {\ul this paragraph.} \n\line 254.21 {\ul (1) "Charity care" means the amount that would have been} \n\line 254.22 {\ul charged by a facility for rendering free or discounted care to} \n\line 254.23 {\ul persons who cannot afford to pay and for which the facility did} \n\line 254.24 {\ul not expect payment. Charity care does not include any amount} \n\line 254.25 {\ul for which a hospital received a payment from a county under} \n\line 254.26 {\ul section 256.969, subdivision 9c.} \n\line 254.27 {\ul (2) A "qualifying hospital" means a hospital in the area} \n\line 254.28 {\ul that is owned or operated by a local unit of government, or} \n\line 254.29 {\ul formerly owned by a university, has a licensed bed capacity} \n\line 254.30 {\ul greater than 400, and provides uncompensated care valued at more} \n\line 254.31 {\ul than 1.8 percent of its gross charges as stated in the} \n\line 254.32 {\ul Healthcare cost information system database, maintained by the} \n\line 254.33 {\ul Minnesota hospital association for the Minnesota department of} \n\line 254.34 {\ul health.} \n\line 254.35 {\ul (b) A county that contains a qualifying hospital that} \n\line 254.36 {\ul provides charity care to residents of the area is eligible for} \n\line 255.1 {\ul reimbursement of the charity care amount that is above the} \n\line 255.2 {\ul statewide average for hospitals for charity care, adjusted to} \n\line 255.3 {\ul cost. By July 15, 2004, and each subsequent year, the county} \n\line 255.4 {\ul shall notify its county auditor, as well as the administrative} \n\line 255.5 {\ul auditor, of the amount of qualifying charity care provided,} \n\line 255.6 {\ul adjusted to cost using the hospital's cost-to-charge ratio,} \n\line 255.7 {\ul during the 12-month period ending on June 30 of the current year.}\n\line 255.8 {\ul (c) The areawide levy of each governmental unit calculated} \n\line 255.9 {\ul in subdivision 3, paragraph (a), must be reduced in an amount} \n\line 255.10 {\ul equal to the reimbursement multiplied by the proportion of the} \n\line 255.11 {\ul areawide levy of each governmental unit to the total areawide} \n\line 255.12 {\ul levy of all governmental units.} \n\line 255.13 {\ul (d) The administrative auditor shall pay one-half of the} \n\line 255.14 {\ul reimbursement to the county auditor of the county that contains} \n\line 255.15 {\ul the qualifying hospital on or before June 15 and the remaining} \n\line 255.16 {\ul one-half of the reimbursement on or before November 15. The} \n\line 255.17 {\ul county auditor receiving the payment shall disburse the} \n\line 255.18 {\ul reimbursement to the qualifying hospital within 15 days of} \n\line 255.19 {\ul receipt of the reimbursement.} \n\line 255.20 {\ul (e) Prior to the reporting specified in paragraph (b)} \n\line 255.21 {\ul above, all qualifying hospitals that participate in this program} \n\line 255.22 {\ul shall agree upon and implement a common standard for reporting} \n\line 255.23 {\ul charity care, and a common standard for determining eligibility} \n\line 255.24 {\ul for charity care for all participating hospitals.} \n\line 255.25 [EFFECTIVE DATE.] {\ul This section is effective for fiscal} \n\line 255.26 {\ul disparities contribution and distribution tax capacities for} \n\line 255.27 {\ul taxes payable in 2005 and subsequent years.} \n\line 255.28 Sec. 22. [REPEALER.] \n\line 255.29 {\ul Laws 1984, chapter 652, section 2, is repealed.} \n\line 255.30 [EFFECTIVE DATE.] {\ul This section is effective for Benton} \n\line 255.31 {\ul county the day after the governing body of Benton county and its} \n\line 255.32 {\ul chief clerical officer timely complete their compliance with} \n\line 255.33 {\ul Minnesota Statutes, section 645.021, subdivisions 2 and 3.} \n\line 255.34 {\ul This section is effective for Stearns county the day after} \n\line 255.35 {\ul the governing body of Stearns county and its chief clerical} \n\line 255.36 {\ul officer timely complete their compliance with Minnesota} \n\line 256.1 {\ul Statutes, section 645.021, subdivisions 2 and 3.}\n\line \n\line \par}
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