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Minnesota Legislature

Office of the Revisor of Statutes

SF 1558

as introduced - 89th Legislature (2015 - 2016) Posted on 03/12/2015 08:50am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; making technical and clarifying changes to individual
income and corporate franchise taxes, estate taxes, sales and use taxes, special
taxes, property taxes, and other taxes and tax provisions; amending Minnesota
Statutes 2014, sections 69.021, subdivision 5; 270A.03, subdivision 5; 270C.35,
by adding a subdivision; 270C.72, subdivision 4; 272.02, subdivision 9; 273.032;
273.33, subdivisions 1, 2; 274.01, subdivision 1; 274.135, subdivision 3;
275.065, subdivision 1; 282.01, subdivisions 1a, 1d; 289A.08, subdivision
11; 289A.09, subdivision 2; 290.01, subdivisions 19b, 19c, 19d; 290.0671,
subdivision 6a; 290.0672, subdivision 1; 290.091, subdivision 3; 290.0921,
subdivision 3; 290.0922, subdivision 2; 291.031; 296A.01, subdivision
42; 296A.07, subdivision 1; 297A.82, subdivision 4a; 297A.94; 297H.06,
subdivision 2; 297I.05, subdivision 2; 297I.10, subdivisions 1, 3; 298.01,
subdivisions 3b, 4c; 469.190, by adding a subdivision; Laws 2014, chapter
308, article 9, section 94; repealing Minnesota Statutes 2014, sections 273.111,
subdivision 9a; 281.22; Minnesota Rules, part 8092.2000.

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

ARTICLE 1

INDIVIDUAL INCOME AND CORPORATE FRANCHISE
TAXES; ESTATE TAXES

Section 1.

Minnesota Statutes 2014, section 289A.08, subdivision 11, is amended to
read:


Subd. 11.

Information included in income tax return.

(a) The return must state:

(1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the
address of the taxpayer in the same name or names and same address as the taxpayer has
used in making the taxpayer's income tax return to the United States;

(2) the date or dates of birth of the taxpayer or taxpayers;

(3) the Social Security number of the taxpayer, or taxpayers, if a Social Security
number has been issued by the United States with respect to the taxpayers; and

(4) the amount of the taxable income of the taxpayer as it appears on the federal
return for the taxable year to which the Minnesota state return applies.

(b) The taxpayer must attach to the taxpayer's Minnesota state income tax return
a copy of the federal income tax return that the taxpayer has filed or is about to file for
the perioddeleted text begin, unless the taxpayer is eligible to telefile the federal return and does file the
Minnesota return by telefiling
deleted text end.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read:


Subd. 2.

Withholding statement.

(a) A person required to deduct and withhold
from an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision
2
, or who would have been required to deduct and withhold a tax under section 290.92,
subdivision 2a
or 3, or persons required to withhold tax under section 290.923, subdivision
2
, determined without regard to section 290.92, subdivision 19, if the employee or payee
had claimed no more than one withholding exemption, or who paid wages or made
payments not subject to withholding under section 290.92, subdivision 2a or 3, or 290.923,
subdivision 2
, to an employee or person receiving royalty payments in excess of $600,
or who has entered into a voluntary withholding agreement with a payee under section
290.92, subdivision 20, must give every employee or person receiving royalty payments in
respect to the remuneration paid by the person to the employee or person receiving royalty
payments during the calendar year, on or before January 31 of the succeeding year, or, if
employment is terminated before the close of the calendar year, within 30 days after the
date of receipt of a written request from the employee if the 30-day period ends before
January 31, a written statement showing the following:

(1) name of the person;

(2) the name of the employee or payee and the employee's or payee's Social Security
account number;

(3) the total amount of wages as that term is defined in section 290.92, subdivision
1
, paragraph (1); the total amount of remuneration subject to withholding under section
290.92, subdivision 20; the amount of sick pay as required under section 6051(f) of the
Internal Revenue Code; and the amount of royalties subject to withholding under section
290.923, subdivision 2; and

(4) the total amount deducted and withheld as tax under section 290.92, subdivision
2a
or 3, or 290.923, subdivision 2.

(b) The statement required to be furnished by paragraph (a) with respect to any
remuneration must be furnished at those times, must contain the information required, and
must be in the form the commissioner prescribes.

(c) The commissioner may prescribe rules providing for reasonable extensions of
time, not in excess of 30 days, to employers or payers required to give the statements to
their employees or payees under this subdivision.

(d) A duplicate of any statement made under this subdivision and in accordance
with rules prescribed by the commissionerdeleted text begin, along with a reconciliation in the form the
commissioner prescribes of the statements for the calendar year, including a reconciliation
of the quarterly returns required to be filed under subdivision 1,
deleted text end must be filed with the
commissioner on or before February 28 of the year after the payments were made.

(e) If an employer cancels the employer's Minnesota withholding account number
required by section 290.92, subdivision 24, the information required by paragraph (d),
must be filed with the commissioner within 30 days of the end of the quarter in which
the employer cancels its account number.

(f) The employer must submit the statements required to be sent to the commissioner
in the same manner required to satisfy the federal reporting requirements of section
6011(e) of the Internal Revenue Code and the regulations issued under it. An employer
must submit statements to the commissioner required by this section by electronic means
if the employer is required to send more than 25 statements to the commissioner, even
though the employer is not required to submit the returns federally by electronic means.
For statements issued for wages paid in 2011 and after, the threshold is ten. All statements
issued for withholding required under section 290.92 are aggregated for purposes of
determining whether the electronic submission threshold is met.

(g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph
(a), clause (2), must submit the returns required by this subdivision and subdivision 1,
paragraph (a), with the commissioner by electronic means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reconciliations required to be
filed after December 31, 2015.
new text end

Sec. 3.

Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:


Subd. 19b.

Subtractions from federal taxable income.

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

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

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

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. No
deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
the qualifying child's vehicle to provide such transportation for a qualifying child. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

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

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
under the provisions of Public Law 109-1 and Public Law 111-126;

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

(8) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause deleted text begin(12)deleted text endnew text begin (11)new text end, in the case of
a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
clause deleted text begin(12)deleted text endnew text begin (11)new text end, in the case of a shareholder of an S corporation, minus the positive value
of any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. The resulting delayed depreciation cannot be less than zero;

(9) job opportunity building zone income as provided under section 469.316;

(10) to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service, including compensation for services performed
under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
service" means (i) state active service as defined in section 190.05, subdivision 5a, clause
(1); or (ii) federally funded state active service as defined in section 190.05, subdivision
5b
, and "active service" includes service performed in accordance with section 190.08,
subdivision 3
;

(11) to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States
or United Nations for active duty performed under United States Code, title 10; or the
authority of the United Nations;

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

(13) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause deleted text begin(13)deleted text endnew text begin (12)new text end, in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of
the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause deleted text begin(13)deleted text endnew text begin
(12)
new text end, in the case of a shareholder of a corporation that is an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition. If the net operating loss exceeds the addition for
the tax year, a subtraction is not allowed under this clause;

(14) to the extent included in the federal taxable income of a nonresident of
Minnesota, compensation paid to a service member as defined in United States Code, title
10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
Act, Public Law 108-189, section 101(2);

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

(16) to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under subdivision 19a, clause (13);

(17) the amount of the net operating loss allowed under section 290.095, subdivision
11
, paragraph (c);

(18) the amount of expenses not allowed for federal income tax purposes due
to claiming the railroad track maintenance credit under section 45G(a) of the Internal
Revenue Code;

(19) the amount of the limitation on itemized deductions under section 68(b) of the
Internal Revenue Code;

(20) the amount of the phaseout of personal exemptions under section 151(d) of
the Internal Revenue Code; and

(21) to the extent included in federal taxable income, the amount of qualified
transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
Revenue Code. The subtraction is limited to the lesser of the amount of qualified
transportation fringe benefits received in excess of the limitations under section
132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:


Subd. 19c.

Corporations; additions to federal taxable income.

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

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

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

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

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

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

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

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

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

deleted text begin (9) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, the amount of the amortization deduction allowed in computing federal taxable
income for those facilities;
deleted text end

deleted text begin (10)deleted text endnew text begin (9)new text end the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

deleted text begin (11)deleted text endnew text begin (10)new text end any increase in subpart F income, as defined in section 952(a) of the
Internal Revenue Code, for the taxable year when subpart F income is calculated without
regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;

deleted text begin (12)deleted text endnew text begin (11)new text end 80 percent of the depreciation deduction allowed under section
168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if
the taxpayer has an activity that in the taxable year generates a deduction for depreciation
under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable
year that the taxpayer is not allowed to claim for the taxable year, "the depreciation
allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess
of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A)
over the amount of the loss from the activity that is not allowed in the taxable year. In
succeeding taxable years when the losses not allowed in the taxable year are allowed, the
depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;

deleted text begin (13)deleted text endnew text begin (12)new text end 80 percent of the amount by which the deduction allowed by section 179 of
the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
Revenue Code of 1986, as amended through December 31, 2003;

deleted text begin (14)deleted text endnew text begin (13)new text end to the extent deducted in computing federal taxable income, the amount of
the deduction allowable under section 199 of the Internal Revenue Code;

deleted text begin (15)deleted text endnew text begin (14)new text end the amount of expenses disallowed under section 290.10, subdivision 2; and

deleted text begin (16)deleted text endnew text begin (15)new text end discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:


Subd. 19d.

Corporations; modifications decreasing federal taxable income.

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

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

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

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

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

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

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

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

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

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

(6) in the case of mines, oil and gas wells, other natural deposits, and timber for
which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a
reasonable allowance for depletion based on actual cost. In the case of leases the deduction
must be apportioned between the lessor and lessee in accordance with rules prescribed
by the commissioner. In the case of property held in trust, the allowable deduction must
be apportioned between the income beneficiaries and the trustee in accordance with the
pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
of the trust's income allocable to each;

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

deleted text begin (8)deleted text endnew text begin (7)new text end amounts included in federal taxable income that are due to refunds of
income, excise, or franchise taxes based on net income or related minimum taxes paid
by the corporation to Minnesota, another state, a political subdivision of another state,
the District of Columbia, or a foreign country or possession of the United States to the
extent that the taxes were added to federal taxable income under subdivision 19c, clause
(1), in a prior taxable year;

deleted text begin (9)deleted text endnew text begin (8)new text end income or gains from the business of mining as defined in section 290.05,
subdivision 1
, clause (a), that are not subject to Minnesota franchise tax;

deleted text begin (10)deleted text endnew text begin (9)new text end the amount of disability access expenditures in the taxable year which are not
allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;

deleted text begin (11)deleted text endnew text begin (10)new text end the amount of qualified research expenses not allowed for federal income
tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
that the amount exceeds the amount of the credit allowed under section 290.068;

deleted text begin (12)deleted text endnew text begin (11)new text end the amount of salary expenses not allowed for federal income tax purposes
due to claiming the Indian employment credit under section 45A(a) of the Internal
Revenue Code;

deleted text begin (13)deleted text endnew text begin (12)new text end any decrease in subpart F income, as defined in section 952(a) of the
Internal Revenue Code, for the taxable year when subpart F income is calculated without
regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;

deleted text begin (14)deleted text endnew text begin (13)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause deleted text begin(12)deleted text endnew text begin (11)new text end, an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
amount of the addition made by the taxpayer under subdivision 19c, clause deleted text begin(12)deleted text endnew text begin (11)new text end. The
resulting delayed depreciation cannot be less than zero;

deleted text begin (15)deleted text endnew text begin (14)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause deleted text begin(13)deleted text endnew text begin (12)new text end, an amount equal to one-fifth
of the amount of the addition;

deleted text begin (16)deleted text endnew text begin (15)new text end to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under subdivision 19c, clause deleted text begin(16)deleted text endnew text begin (15)new text end; and

deleted text begin (17)deleted text endnew text begin (16)new text end the amount of expenses not allowed for federal income tax purposes due
to claiming the railroad track maintenance credit under section 45G(a) of the Internal
Revenue Code.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2014, section 290.0671, subdivision 6a, is amended to read:


Subd. 6a.

TANF appropriation for working family credit expansion.

(a) On
an annual basis the commissioner of revenue, with the assistance of the commissioner
of human services, shall calculate the value of the refundable portion of the Minnesota
Working Family Credit provided under this section that qualifies for payment with funds
from the federal Temporary Assistance for Needy Families (TANF) block grant. Of this
total amount, the commissioner of revenue shall estimate the portion entailed by the
expansion of the credit ratesnew text begin provided in Laws 2000, chapter 490, article 4, section 17,new text end
for individuals with qualifying children over the rates provided in Laws 1999, chapter
243, article 2, section 12.

(b) An amount sufficient to pay the refunds entailed by the expansion of the credit
ratesnew text begin provided in Laws 2000, chapter 490, article 4, section 17,new text end for individuals with
qualifying children over the rates provided in Laws 1999, chapter 243, article 2, section
12, as estimated in paragraph (a), is appropriated to the commissioner of human services
from the federal Temporary Assistance for Needy Families (TANF) block grant funds, for
transfer to the commissioner of revenue for deposit in the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for transfers in fiscal
year 2015 and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2014, section 290.0672, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

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

(b) "Long-term care insurance" means a policy that:

(1) qualifies for a deduction under section 213 of the Internal Revenue Code,
disregarding the deleted text begin7.5 percentdeleted text endnew text begin adjusted grossnew text end income test; or meets the requirements
given in section 62A.46; or provides similar coverage issued under the laws of another
jurisdiction; and

(2) has a lifetime long-term care benefit limit of not less than $100,000; and

(3) has been offered in compliance with the inflation protection requirements of
section 62S.23.

(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.

(d) "Premiums deducted in determining federal taxable income" means the lesser of
(1) long-term care insurance premiums that qualify as deductions under section 213 of
the Internal Revenue Code; and (2) the total amount deductible for medical care under
section 213 of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years
beginning after December 31, 2012.
new text end

Sec. 8.

Minnesota Statutes 2014, section 290.091, subdivision 3, is amended to read:


Subd. 3.

Exemption amount.

(a) For purposes of computing the alternative
minimum tax, the exemption amount is, for taxable years beginning after December 31,
2005, $60,000 for married couples filing joint returns, $30,000 for married individuals
filing separate returns, estates, and trusts, and $45,000 for unmarried individuals.

(b) The exemption amount determined under this subdivision is subject to the phase
out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum
taxable income as determined under this section must be substituted in the computation of
the phase out.

(c) For taxable years beginning after December 31, 2006, the exemption amount
under paragraph (a)deleted text begin, clause (2),deleted text end must be adjusted for inflation. The commissioner shall
adjust the exemption amount by the percentage determined pursuant to the provisions of
section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2005"
shall be substituted for the word "1992." For 2007, the commissioner shall then determine
the percent change from the 12 months ending on August 31, 2005, to the 12 months
ending on August 31, 2006, and in each subsequent year, from the 12 months ending on
August 31, 2005, to the 12 months ending on August 31 of the year preceding the taxable
year. The exemption amount as adjusted must be rounded to the nearest $10. If the amount
ends in $5, it must be rounded up to the nearest $10 amount. The determination of the
commissioner under this subdivision is not a rule under the Administrative Procedure Act.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2014, section 290.0921, subdivision 3, is amended to read:


Subd. 3.

Alternative minimum taxable income.

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

(1) The portion of the depreciation deduction allowed for federal income tax
purposes under section 168(k) of the Internal Revenue Code that is required as an addition
under section 290.01, subdivision 19c, clause deleted text begin(12)deleted text endnew text begin (11)new text end, is disallowed in determining
alternative minimum taxable income.

(2) The subtraction for depreciation allowed under section 290.01, subdivision
19d
, clause deleted text begin(14)deleted text endnew text begin (13)new text end, is allowed as a depreciation deduction in determining alternative
minimum taxable income.

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

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

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

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

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

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

(9) For purposes of determining the amount of adjusted current earnings under
section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii) the
amount of refunds of income, excise, or franchise taxes subtracted as provided in section
290.01, subdivision 19d, clause deleted text begin(8)deleted text endnew text begin (7)new text end.

(10) Alternative minimum taxable income excludes the income from operating in a
job opportunity building zone as provided under section 469.317.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2014, section 291.031, is amended to read:


291.031 CREDIT.

(a) The estate of a nonresident decedent that is subject to tax under this chapter on
the value of Minnesota situs property held in a pass-through entity is allowed a credit
against the tax due under section 291.03 equal to the lesser of:

(1) the amount of estate or inheritance tax paid to another state that is attributable to
the Minnesota situs property held in the pass-through entity; or

(2) the amount of tax deleted text beginpaid under this sectiondeleted text endnew text begin due under section 291.03new text end attributable to
the Minnesota situs property held in the pass-through entity.

(b) The amount of tax attributable to the Minnesota situs property held in the
pass-through entity must be determined by the increase in the estate or inheritance tax that
results from including the market value of the property in the estate or treating the value
as a taxable inheritance to the recipient of the property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2013.
new text end

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Rules, part 8092.2000, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

SALES AND USE TAXES

Section 1.

Minnesota Statutes 2014, section 297A.82, subdivision 4a, is amended to
read:


Subd. 4a.

Deposit in state airports fund.

Tax revenuenew text begin, including interest and
penalties,
new text end collected from the sale or purchase of an aircraft taxable under this chapter must
be deposited in the state airports fund established in section 360.017.new text begin For purposes of this
subdivision, "revenue" does not include the revenue, including interest and penalties,
generated by the sales tax imposed under section 297A.62, subdivision 1a, which must be
deposited as provided under the Minnesota Constitution, article XI, section 15.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 297A.94, is amended to read:


297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for
the construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment
was made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date
on which the project received the conditional commitment. The amount deposited in
the loan guaranty account must be reduced by any refunds and by the costs incurred by
the Department of Revenue to administer and enforce the assessment and collection of
the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties,
derived from the taxes imposed on sales and purchases included in section 297A.61,
subdivision 3
, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5
, for the previous calendar year.

(e) 72.43 percent of the revenues, including interest and penalties, transmitted to
the commissioner under section 297A.65, must be deposited by the commissioner in the
state treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account
in the game and fish fund, and may be spent only on activities that improve, enhance, or
protect fish and wildlife resources, including conservation, restoration, and enhancement
of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund,
and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
Conservatory, and the Duluth Zoo.

(f) The revenue dedicated under paragraph (e) may not be used as a substitute
for traditional sources of funding for the purposes specified, but the dedicated revenue
shall supplement traditional sources of funding for those purposes. Land acquired with
money deposited in the game and fish fund under paragraph (e) must be open to public
hunting and fishing during the open season, except that in aquatic management areas or
on lands where angling easements have been acquired, fishing may be prohibited during
certain times of the year and hunting may be prohibited. At least 87 percent of the money
deposited in the game and fish fund for improvement, enhancement, or protection of fish
and wildlife resources under paragraph (e) must be allocated for field operations.

(g) The revenues deposited deleted text beginunder paragraphs (a) to (f)deleted text endnew text begin in, transferred to, or credited
to a fund other than the general fund by a provision in this chapter
new text end do not include the
revenues, including interest and penalties, generated by the sales tax imposed under
section 297A.62, subdivision 1a, which must be deposited as provided under the
Minnesota Constitution, article XI, section 15.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2014, section 469.190, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Tax base; locally collected taxes. new text end

new text begin A tax imposed on the gross receipts
from lodging under this section or under a special law applies to the same base as taxes
collected by the commissioner of revenue under subdivision 7 and section 270C.171.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
In enacting this section, the legislature confirms its original intent in enacting Minnesota
Statutes, section 469.190, its predecessor provisions, and any special laws authorizing
political subdivisions to impose lodging taxes, and that those taxes were and are intended
to apply to the entire consideration paid to obtain access to transient lodging, including
ancillary or related services, such as services provided by accommodation intermediaries
as defined in Minnesota Statutes, section 297A.61, and similar services. The provisions of
this section must not be interpreted to imply a narrower construction of the tax base under
lodging tax provisions of Minnesota law prior to the enactment of this section.
new text end

ARTICLE 3

SPECIAL TAXES

Section 1.

Minnesota Statutes 2014, section 69.021, subdivision 5, is amended to read:


Subd. 5.

Calculation of state aid.

(a) The amount of fire state aid available for
apportionment, before the addition of the minimum fire state aid allocation amount under
subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state
upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to
the commissioner by insurers on the Minnesota Firetown Premium Report. This amount
must be reduced by the amount required to pay the state auditor's costs and expenses of
the audits or exams of the firefighters relief associations.

The total amount for apportionment in respect to fire state aid must not be less than
two percent of the premiums reported to the commissioner by insurers on the Minnesota
Firetown Premium Report after subtracting the following amounts:

(1) the amount required to pay the state auditor's costs and expenses of the audits or
exams of the firefighters relief associations; and

(2) one percent of the premiums reported by deleted text begintown and farmers'deleted text endnew text begin townshipnew text end mutual
insurance companies and mutual property and casualty companies with total assets of
$5,000,000 or less.

(b) The total amount for apportionment as police state aid is equal to 104 percent
of the amount of premium taxes paid to the state on the premiums reported to the
commissioner by insurers on the Minnesota Aid to Police Premium Report. The total
amount for apportionment in respect to the police state aid program must not be less than
two percent of the amount of premiums reported to the commissioner by insurers on the
Minnesota Aid to Police Premium Report.

(c) The commissioner shall calculate the percentage of increase or decrease reflected
in the apportionment over or under the previous year's available state aid using the same
premiums as a basis for comparison.

(d) In addition to the amount for apportionment of police state aid under paragraph
(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to
pay this increase is annually appropriated from the general fund.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 290.0922, subdivision 2, is amended to read:


Subd. 2.

Exemptions.

The following entities are exempt from the tax imposed
by this section:

(1) corporations exempt from tax under section 290.05;

(2) real estate investment trusts;

(3) regulated investment companies or a fund thereof; and

(4) entities having a valid election in effect under section 860D(b) of the Internal
Revenue Code;

(5) deleted text begintown and farmers'deleted text endnew text begin townshipnew text end mutual insurance companies;

(6) cooperatives organized under chapter 308A or 308B that provide housing
exclusively to persons age 55 and over and are classified as homesteads under section
273.124, subdivision 3; and

(7) a qualified business as defined under section 469.310, subdivision 11, if for the
taxable year all of its property is located in a job opportunity building zone designated
under section 469.314 and all of its payroll is a job opportunity building zone payroll
under section 469.310.

Entities not specifically exempted by this subdivision are subject to tax under this
section, notwithstanding section 290.05.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2014, section 296A.01, subdivision 42, is amended to read:


Subd. 42.

Petroleum products.

"Petroleum products" means all of the products
defined in subdivisions 2, 7, 8, 8a,new text begin 8b,new text end 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2014, section 296A.07, subdivision 1, is amended to read:


Subdivision 1.

Tax imposed.

There is imposed an excise tax on gasoline, gasoline
blended with ethanol, and agricultural alcohol gasoline used in producing and generating
power for propelling motor vehicles used on the public highways of this state. The tax
is imposed on the first licensed distributor who received the product in Minnesota. For
purposes of this section, gasoline is defined in section 296A.01, subdivisions new text begin8b, new text end10, 18,
20, 23, 24, 25, 32, and 34
. The tax is payable at the time and in the form and manner
prescribed by the commissioner. The tax is payable at the rates specified in subdivision 3,
subject to the exceptions and reductions specified in section 296A.17.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2014, section 297H.06, subdivision 2, is amended to read:


Subd. 2.

Materials.

The tax is not imposed upon charges to generators of mixed
municipal solid waste or upon the volume of nonmixed municipal solid waste for waste
management services to manage the following materials:

(1) mixed municipal solid waste and nonmixed municipal solid waste generated
outside of Minnesota;

(2) recyclable materials that are separated for recycling by the generator, collected
separately from other waste, and recycled, to the extent the price of the service for
handling recyclable material is separately itemizednew text begin on a bill to the generatornew text end;

(3) recyclable nonmixed municipal solid waste that is separated for recycling by
the generator, collected separately from other waste, delivered to a waste facility for the
purpose of recycling, and recycled;

(4) industrial waste, when it is transported to a facility owned and operated by
the same person that generated it;

(5) mixed municipal solid waste from a recycling facility that separates or processes
recyclable materials and reduces the volume of the waste by at least 85 percent, provided
that the exempted waste is managed separately from other waste;

(6) recyclable materials that are separated from mixed municipal solid waste by the
generator, collected and delivered to a waste facility that recycles at least 85 percent of its
waste, and are collected with mixed municipal solid waste that is segregated in leakproof
bags, provided that the mixed municipal solid waste does not exceed five percent of the
total weight of the materials delivered to the facility and is ultimately delivered to a waste
facility identified as a preferred waste management facility in county solid waste plans
under section 115A.46;

(7) source-separated compostable deleted text beginwastedeleted text endnew text begin materialsnew text end, if the deleted text beginwaste isdeleted text endnew text begin materials arenew text end
delivered to a facility exempted as described in this clause. To initially qualify for an
exemption, a facility must apply for an exemption in its application for a new or amended
solid waste permit to the Pollution Control Agency. The first time a facility applies to the
agency it must certify in its application that it will comply with the criteria in items (i) to (v)
and the commissioner of the agency shall so certify to the commissioner of revenue who
must grant the exemption. The facility must annually apply to the agency for certification
to renew its exemption for the following year. The application must be filed according to
the procedures of, and contain the information required by, the agency. The commissioner
of revenue shall grant the exemption if the commissioner of the Pollution Control Agency
finds and certifies to the commissioner of revenue that based on an evaluation of the
composition of incoming waste and residuals and the quality and use of the product:

(i) generators separate materials at the source;

(ii) the separation is performed in a manner appropriate to the technology specific
to the facility that:

(A) maximizes the quality of the product;

(B) minimizes the toxicity and quantity of deleted text beginresidualsdeleted text endnew text begin rejectsnew text end; and

(C) provides an opportunity for significant improvement in the environmental
efficiency of the operation;

(iii) the operator of the facility educates generators, in coordination with each county
using the facility, about separating the waste to maximize the quality of the waste stream
for technology specific to the facility;

(iv) process deleted text beginresidualsdeleted text endnew text begin rejectsnew text end do not exceed 15 percent of the weight of the total
material delivered to the facility; and

(v) the final product is accepted for use;

(8) waste and waste by-products for which the tax has been paid; and

(9) daily cover for landfills that has been approved in writing by the Minnesota
Pollution Control Agency.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2014, section 297I.05, subdivision 2, is amended to read:


Subd. 2.

deleted text beginTown and farmers'deleted text endnew text begin Townshipnew text end mutual insurance.

A tax is imposed on
deleted text begintown and farmers'deleted text endnew text begin townshipnew text end mutual insurance companies. The rate of tax is equal to one
percent of gross premiums less return premiums on all direct business received by the
insurer or agents of the insurer in Minnesota, in cash or otherwise, during the year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2014, section 297I.10, subdivision 1, is amended to read:


Subdivision 1.

Cities of the first class.

(a) The commissioner shall order and direct
a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
premiums, less return premiums, on all direct business received by any licensed foreign or
domestic fire insurance company on property in a city of the first class, or by its agents for
it, in cash or otherwise.

(b) By July 31 and December 31 of each year, the commissioner deleted text beginof management
and budget
deleted text end shall pay to each city of the first class a warrant for an amount equal to the
total amount of the surcharge on the premiums collected within that city since the previous
payment.

(c) The treasurer of the city shall place the money received under this subdivision
in a special account or fund to defray all or a portion of the employer contribution
requirement of public employees police and fire plan coverage for city firefighters.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2014, section 297I.10, subdivision 3, is amended to read:


Subd. 3.

Appropriation.

The amount necessary to make the payments required
under this section is appropriated to the commissioner deleted text beginof management and budgetdeleted text end from
the general fund.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2014, section 298.01, subdivision 3b, is amended to read:


Subd. 3b.

Deductions.

(a) For purposes of determining taxable income under
subdivision 3, the deductions from gross income include only those expenses necessary
to convert raw ores to marketable quality. Such expenses include costs associated with
refinement but do not include expenses such as transportation, stockpiling, marketing, or
marine insurance that are incurred after marketable ores are produced, unless the expenses
are included in gross income. The allowable deductions from a mine or plant that mines
and produces more than one mineral, metal, or energy resource must be determined
separately for the purposes of computing the deduction in section 290.01, subdivision 19c,
clause (8). These deductions may be combined on one occupation tax return to arrive at
the deduction from gross income for all production.

(b) The provisions of section 290.01, subdivisions 19c, clauses (6) and (8), and 19d,
clauses (6) and deleted text begin(9)deleted text endnew text begin (8)new text end, are not used to determine taxable income.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2014, section 298.01, subdivision 4c, is amended to read:


Subd. 4c.

Special deductions; net operating loss.

deleted text begin(a)deleted text end For purposes of determining
taxable income under subdivision 4, the provisions of section 290.01, subdivisions 19c,
clauses (6)
and (8), and 19d, clauses (6) and deleted text begin(9)deleted text endnew text begin (8)new text end, are not used to determine taxable
income.

deleted text begin (b) The amount of net operating loss incurred in a taxable year beginning before
January 1, 1990, that may be carried over to a taxable year beginning after December 31,
1989, is the amount of net operating loss carryover determined in the calculation of the
hypothetical corporate franchise tax under Minnesota Statutes 1988, sections 298.40
and 298.402.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 4

PROPERTY TAXES

Section 1.

Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:


Subd. 9.

Personal property; exceptions.

Except for the taxable personal property
enumerated below, all personal property and the property described in section 272.03,
subdivision 1
, paragraphs (c) and (d), shall be exempt.

The following personal property shall be taxable:

(a) personal property which is part of new text begin(i) new text endan electric generating, transmission, or
distribution system deleted text beginordeleted text endnew text begin; (ii)new text end a pipeline system transporting or distributing deleted text beginwater, gas, crude
oil, or petroleum
deleted text end productsnew text begin;new text end or new text begin(iii) new text endmains and pipes used in the distribution of steam or hot
or chilled water for heating or cooling buildings and structures;

(b) railroad docks and wharves which are part of the operating property of a railroad
company as defined in section 270.80;

(c) personal property defined in section 272.03, subdivision 2, clause (3);

(d) leasehold or other personal property interests which are taxed pursuant to section
272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law
providing the property is taxable as if the lessee or user were the fee owner;

(e) manufactured homes and sectional structures, including storage sheds, decks,
and similar removable improvements constructed on the site of a manufactured home,
sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision
8
, paragraph (f); and

(f) flight property as defined in section 270.071.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 273.032, is amended to read:


273.032 MARKET VALUE DEFINITION.

(a) Unless otherwise provided, for the purpose of determining any property tax
levy limitation based on market value or any limit on net debt, the issuance of bonds,
certificates of indebtedness, or capital notes based on market value, any qualification to
receive state aid based on market value, or any state aid amount based on market value,
the terms "market value," "estimated market value," and "market valuation," whether
equalized or unequalized, mean the estimated market value of taxable property within the
local unit of government before any of the following or similar adjustments for:

(1) the market value exclusions under:

(i) section 273.11, subdivisions 14a and 14c (vacant platted land);

(ii) section 273.11, subdivision 16 (certain improvements to homestead property);

(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business
properties);

(iv) section 273.11, subdivision 21 (homestead property damaged by mold);

deleted text begin (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
deleted text end

deleted text begin (vi)deleted text endnew text begin (v)new text end section 273.13, subdivision 34 (homestead of a disabled veteran or family
caregiver); or

deleted text begin (vii)deleted text endnew text begin (vi)new text end section 273.13, subdivision 35 (homestead market value exclusion); or

(2) the deferment of value under:

(i) the Minnesota Agricultural Property Tax Law, section 273.111;

(ii) the Aggregate Resource Preservation Law, section 273.1115;

(iii) the Minnesota Open Space Property Tax Law, section 273.112;

(iv) the rural preserves property tax program, section 273.114; or

(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or

(3) the adjustments to tax capacity for:

(i) tax increment financing under sections 469.174 to 469.1794;

(ii) fiscal disparities under chapter 276A or 473F; or

(iii) powerline credit under section 273.425.

(b) Estimated market value under paragraph (a) also includes the market value
of tax-exempt property if the applicable law specifically provides that the limitation,
qualification, or aid calculation includes tax-exempt property.

(c) Unless otherwise provided, "market value," "estimated market value," and
"market valuation" for purposes of property tax levy limitations and calculation of state
aid, refer to the estimated market value for the previous assessment year and for purposes
of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes
refer to the estimated market value as last finally equalized.

(d) For purposes of a provision of a home rule charter or of any special law that is not
codified in the statutes and that imposes a levy limitation based on market value or any limit
on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
value, the terms "market value," "taxable market value," and "market valuation," whether
equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2014, section 273.33, subdivision 1, is amended to read:


Subdivision 1.

Listing and assessment in county.

The personal property of express,
stage and transportation companies, and of pipeline companies engaged in the business
of transporting deleted text beginnatural gas, gasoline, crude oil, or other petroleumdeleted text end productsnew text begin,new text end except as
otherwise provided by law, shall be listed and assessed in the county, town or district
where the same is usually kept.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2014, section 273.33, subdivision 2, is amended to read:


Subd. 2.

Listing and assessment by commissioner.

The personal property,
consisting of the pipeline system of mains, pipes, and equipment attached thereto, of
pipeline companies and others engaged in the operations or business of transporting
deleted text beginnatural gas, gasoline, crude oil, or other petroleumdeleted text end products by pipelines, shall be listed
with and assessed by the commissioner of revenue and the values provided to the
city or county assessor by order. This subdivision shall not apply to the assessment of
the products transported through the pipelines nor to the lines of local commercial gas
companies engaged primarily in the business of distributing deleted text begingasdeleted text endnew text begin productsnew text end to consumers at
retail nor to pipelines used by the owner thereof to supply deleted text beginnatural gas or other petroleumdeleted text end
products exclusively for such owner's own consumption and not for resale to others. If
more than 85 percent of the deleted text beginnatural gas or other petroleumdeleted text end products actually transported
over the pipeline is used for the owner's own consumption and not for resale to others,
then this subdivision shall not apply; provided, however, that in that event, the pipeline
shall be assessed in proportion to the percentage of deleted text begingasdeleted text endnew text begin productsnew text end actually transported over
such pipeline that is not used for the owner's own consumption. On or before August 1,
the commissioner shall certify to the auditor of each county, the amount of such personal
property assessment against each company in each district in which such property is
located. If the commissioner determines that the amount of personal property assessment
certified on or before August 1 is in error, the commissioner may issue a corrected
certification on or before October 1. The commissioner may correct errors that are merely
clerical in nature until December 31.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2014, section 274.01, subdivision 1, is amended to read:


Subdivision 1.

Ordinary board; meetings, deadlines, grievances.

(a) The town
board of a town, or the council or other governing body of a city, is the new text beginlocal new text endboard
of appeal and equalization except (1) in cities whose charters provide for a board of
equalization or (2) in any city or town that has transferred its local board of review power
and duties to the county board as provided in subdivision 3. The county assessor shall
fix a day and time when deleted text beginthe board ordeleted text end the new text beginlocal new text endboard of equalization shall meet in the
assessment districts of the county. Notwithstanding any law or city charter to the contrary,
a city board of equalization shall be referred to as a new text beginlocal new text endboard of appeal and equalization.
On or before February 15 of each year the assessor shall give written notice of the time
to the city or town clerk. Notwithstanding the provisions of any charter to the contrary,
the meetings must be held between April 1 and May 31 each year. The clerk shall give
published and posted notice of the meeting at least ten days before the date of the meeting.

The board shall meet either at a central location within the county or at the office of
the clerk to review the assessment and classification of property in the town or city. No
changes in valuation or classification which are intended to correct errors in judgment by
the county assessor may be made by the county assessor after the board has adjourned
in those cities or towns that hold a local board of review; however, corrections of errors
that are merely clerical in nature or changes that extend homestead treatment to property
are permitted after adjournment until the tax extension date for that assessment year. The
changes must be fully documented and maintained in the assessor's office and must be
available for review by any person. A copy of the changes made during this period in
those cities or towns that hold a local board of review must be sent to the county board no
later than December 31 of the assessment year.

(b) The board shall determine whether the taxable property in the town or city has
been properly placed on the list and properly valued by the assessor. If real or personal
property has been omitted, the board shall place it on the list with its market value, and
correct the assessment so that each tract or lot of real property, and each article, parcel,
or class of personal property, is entered on the assessment list at its market value. No
assessment of the property of any person may be raised unless the person has been
duly notified of the intent of the board to do so. On application of any person feeling
aggrieved, the board shall review the assessment or classification, or both, and correct
it as appears just. The board may not make an individual market value adjustment or
classification change that would benefit the property if the owner or other person having
control over the property has refused the assessor access to inspect the property and the
interior of any buildings or structures as provided in section 273.20. A board member
shall not participate in any actions of the board which result in market value adjustments
or classification changes to property owned by the board member, the spouse, parent,
stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
or niece of a board member, or property in which a board member has a financial interest.
The relationship may be by blood or marriage.

(c) A local board may reduce assessments upon petition of the taxpayer but the total
reductions must not reduce the aggregate assessment made by the county assessor by more
than one percent. If the total reductions would lower the aggregate assessments made by
the county assessor by more than one percent, none of the adjustments may be made. The
assessor shall correct any clerical errors or double assessments discovered by the board
without regard to the one percent limitation.

(d) A local board does not have authority to grant an exemption or to order property
removed from the tax rolls.

(e) A majority of the members may act at the meeting, and adjourn from day to day
until they finish hearing the cases presented. The assessor shall attend and take part in
the proceedings, but must not vote. The county assessor, or an assistant delegated by the
county assessor shall attend the meetings. The board shall list separately all omitted
property added to the list by the board and all items of property increased or decreased,
with the market value of each item of property, added or changed by the board. The
county assessor shall enter all changes made by the board.

(f) Except as provided in subdivision 3, if a person fails to appear in person, by
counsel, or by written communication before the board after being duly notified of the
board's intent to raise the assessment of the property, or if a person feeling aggrieved by an
assessment or classification fails to apply for a review of the assessment or classification,
the person may not appear before the county board of appeal and equalization for a review.
This paragraph does not apply if an assessment was made after the local board meeting, as
provided in section 273.01, or if the person can establish not having received notice of
market value at least five days before the local board meeting.

(g) The local board must complete its work and adjourn within 20 days from the
time of convening stated in the notice of the clerk, unless a longer period is approved by
the commissioner of revenue. No action taken after that date is valid. All complaints
about an assessment or classification made after the meeting of the board must be heard
and determined by the county board of equalization. A nonresident may, at any time,
before the meeting of the board file written objections to an assessment or classification
with the county assessor. The objections must be presented to the board at its meeting by
the county assessor for its consideration.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2014, section 274.135, subdivision 3, is amended to read:


Subd. 3.

Proof of compliance; transfer of duties.

(a) Any county that conducts
county boards of appeal and equalization meetings must provide proof to the commissioner
by deleted text beginDecember 1, 2009, and each year thereafter,deleted text endnew text begin February 1 new text end that it is in compliance with the
requirements of subdivision 2. deleted text beginBeginning in 2009,deleted text end This notice must also verify that there
was a quorum of voting members at each meeting of the board of appeal and equalization
in the deleted text begincurrentdeleted text endnew text begin previousnew text end year. A county that does not comply with these requirements is
deemed to have transferred its board of appeal and equalization powers to the special
board of equalization appointed pursuant to section 274.13, subdivision 2, beginning
with the following year's assessment and continuing unless the powers are reinstated
under paragraph (c). A county that does not comply with the requirements of subdivision
2 and has not appointed a special board of equalization shall appoint a special board of
equalization before the following year's assessment.

(b) The county shall notify the taxpayers when the board of appeal and equalization
for a county has been transferred to the special board of equalization under this subdivision
and, prior to the meeting time of the special board of equalization, the county shall make
available to those taxpayers a procedure for a review of the assessments, including, but
not limited to, open book meetings. This alternate review process must take place in
April and May.

(c) A county board whose powers are transferred to the special board of equalization
under this subdivision may be reinstated by resolution of the county board and upon proof
of compliance with the requirements of subdivision 2. The resolution and proofs must
be provided to the commissioner by deleted text beginDecemberdeleted text endnew text begin Februarynew text end 1 in order to be effective for
the deleted text beginfollowingdeleted text endnew text begin currentnew text end year's assessment.

(d) If a person who was entitled to appeal to the county board of appeal and
equalization or to the county special board of equalization is not able to do so in a
particular year because the county board or special board did not meet the quorum and
training requirements in this section and section 274.13, or because the special board
was not appointed, that person may instead appeal to the commissioner of revenue,
provided that the appeal is received by the commissioner prior to August 1. The appeal
is not subject to either chapter 14 or section 270C.92. The commissioner must issue
an appropriate order to the county assessor in response to each timely appeal, either
upholding or changing the valuation or classification of the property. Prior to October 1 of
each year, the commissioner must charge and bill the county where the property is located
$500 for each tax parcel covered by an order issued under this paragraph in that year.
Amounts received by the commissioner under this paragraph must be deposited in the
state's general fund. If payment of a billed amount is not received by the commissioner
before December 1 of the year when billed, the commissioner must deduct that unpaid
amount from any state aid the commissioner would otherwise pay to the county under
chapter 477A in the next year. Late payments may either be returned to the county
uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid
paid to the county under chapter 477A must be adjusted within 12 months to eliminate any
reduction that occurred because the payment was late. Amounts needed to make these
adjustments are included in the appropriation under section 477A.03, subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for county boards of appeal and
equalization meetings held in 2016 and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:


Subdivision 1.

Proposed levy.

(a) Notwithstanding any law or charter to the
contrary, on or before September 30, each county and each home rule charter or statutory
city shall certify to the county auditor the proposed property tax levy for taxes payable in
the following year.

(b) Notwithstanding any law or charter to the contrary, on or before September 15,
each town and each special taxing district shall adopt and certify to the county auditor a
proposed property tax levy for taxes payable in the following year. For towns, the final
certified levy shall also be considered the proposed levy.

(c) On or before September 30, each school district that has not mutually agreed
with its home county to extend this date shall certify to the county auditor the proposed
property tax levy for taxes payable in the following year. Each school district that has
agreed with its home county to delay the certification of its proposed property tax levy
must certify its proposed property tax levy for the following year no later than October
7. The school district shall certify the proposed levy as:

(1) a specific dollar amount by school district fund, broken down between
voter-approved and non-voter-approved levies and between referendum market value
and tax capacity levies; or

(2) the maximum levy limitation certified by the commissioner of education
according to section 126C.48, subdivision 1.

(d) If the board of estimate and taxation or any similar board that establishes
maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
property tax levies for funds under its jurisdiction by charter to the county auditor by the
date specified in paragraph (a), the city shall be deemed to have certified its levies for
those taxing jurisdictions.

(e) For purposes of this section, "special taxing district" means a special taxing
district as defined in section 275.066. Intermediate school districts that levy a tax
under chapter 124 or 136D, joint powers boards established under sections 123A.44 to
123A.446, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are
also special taxing districts for purposes of this section.

(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
tax levy under this subdivision, the taxing authority shall announce the time and place
of deleted text beginitsdeleted text endnew text begin anynew text end subsequent regularly scheduled meetings at which the budget and levy will be
discussed and at which the public will be allowed to speak. The time and place of those
meetings must be included in the proceedings or summary of proceedings published in the
official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2014, section 282.01, subdivision 1a, is amended to read:


Subd. 1a.

Conveyance to public entities.

(a) Upon written request from a state
agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited land
must be withheld from sale or lease to others for a maximum of six months. The request
must be submitted to the county auditor. Upon receipt, the county auditor must withhold
the parcel from sale or lease to any other party for six months, and must confirm the
starting date of the six-month withholding period to the requesting agency or subdivision.
If the request is from a governmental subdivision of the state, the governmental
subdivision must pay the maintenance costs incurred by the county during the period the
parcel is withheld. The county board may approve a sale or conveyance to the requesting
party during the withholding period. A conveyance of the property to the requesting
party terminates the withholding period.

A governmental subdivision of the state must not make, and a county auditor must
not act upon, a second request to withhold a parcel from sale or lease within 18 months
of a previous request for that parcel. A county may reject a request made under this
paragraph if the request is made more than 30 days after the county has given notice to the
requesting state agency or governmental subdivision of the state that the county intends to
sell or otherwise dispose of the property.

(b) Nonconservation tax-forfeited lands may be sold by the county board, for
their market value as determined by the county board, to an organized or incorporated
governmental subdivision of the state for any public purpose for which the subdivision is
authorized to acquire property. When the term "market value" is used in this section, it
means an estimate of the full and actual market value of the parcel as determined by the
county board, but in making this determination, the board and the persons employed by or
under contract with the board in order to perform, conduct, or assist in the determination,
are exempt from the licensure requirements of chapter 82B.

(c) Nonconservation tax-forfeited lands may be deleted text beginreleased from the trust in favor of
the taxing districts on application to
deleted text end new text begin sold by new text endthe county board deleted text beginbydeleted text endnew text begin, for their market value as
determined by the county board, to
new text end a state agency for deleted text beginan authorized use at not less than
their market value as determined by the county board
deleted text endnew text begin any public purpose for which the
agency is authorized to acquire property
new text end.

(d) Nonconservation tax-forfeited lands may be sold by the county board to an
organized or incorporated governmental subdivision of the state or state agency for less
than their market value if:

(1) the county board determines that a sale at a reduced price is in the public interest
because a reduced price is necessary to provide an incentive to correct the blighted
conditions that make the lands undesirable in the open market, or the reduced price will
lead to the development of affordable housing; and

(2) the governmental subdivision or state agency has documented its specific plans
for correcting the blighted conditions or developing affordable housing, and the specific
law or laws that empower it to acquire real property in furtherance of the plans.

If the sale under this paragraph is to a governmental subdivision of the state, the
commissioner of revenue must convey the property on behalf of the state by quitclaim
deed. If the sale under this paragraph is to a state agency, new text beginthe property is released from
the trust in favor of the taxing districts and
new text endthe commissioner new text beginof revenue new text endmust deleted text beginissue a
conveyance document that releases the property from the trust in favor of the taxing
districts
deleted text endnew text begin convey the property on behalf of the state by quitclaim deed to the agencynew text end.

(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
may be conveyed by the commissioner of revenue in the name of the state to a
governmental subdivision for an authorized public use, if an application is submitted to the
commissioner which includes a statement of facts as to the use to be made of the tract and
the favorable recommendation of the county board. For the purposes of this paragraph,
"authorized public use" means a use that allows an indefinite segment of the public to
physically use and enjoy the property in numbers appropriate to its size and use, or is for a
public service facility. Authorized public uses as defined in this paragraph are limited to:

(1) a road, or right-of-way for a road;

(2) a park that is both available to, and accessible by, the public that contains
improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;

(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
with a reasonable amount of surrounding land maintained in its natural state;

(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
including transit ways, park-and-ride lots, transit stations, maintenance and garage
facilities, and other facilities related to a public transit system;

(5) public beaches or boat launches;

(6) public parking;

(7) civic recreation or conference facilities; and

(8) public service facilities such as fire halls, police stations, lift stations, water
towers, sanitation facilities, water treatment facilities, and administrative offices.

No monetary compensation or consideration is required for the conveyance, except as
provided in subdivision 1g, but the conveyance is subject to the conditions provided in
law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.

(f) The commissioner of revenue shall convey a parcel of nonconservation
tax-forfeited land to a local governmental subdivision of the state by quitclaim deed
on behalf of the state upon the favorable recommendation of the county board if the
governmental subdivision has certified to the board that prior to forfeiture the subdivision
was entitled to the parcel under a written development agreement or instrument, but
the conveyance failed to occur prior to forfeiture. No compensation or consideration is
required for, and no conditions attach to, the conveyance.

(g) The commissioner of revenue shall convey a parcel of nonconservation
tax-forfeited land to the association of a common interest community by quitclaim deed
upon the favorable recommendation of the county board if the association certifies to the
board that prior to forfeiture the association was entitled to the parcel under a written
agreement, but the conveyance failed to occur prior to forfeiture. No compensation or
consideration is required for, and no conditions attach to, the conveyance.

(h) Conservation tax-forfeited land may be sold to a governmental subdivision of
the state for less than its market value for either: (1) creation or preservation of wetlands;
(2) drainage or storage of storm water under a storm water management plan; or (3)
preservation, or restoration and preservation, of the land in its natural state. The deed must
contain a restrictive covenant limiting the use of the land to one of these purposes for
30 years or until the property is reconveyed back to the state in trust. At any time, the
governmental subdivision may reconvey the property to the state in trust for the taxing
districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
No part of a purchase price determined under this paragraph shall be refunded upon a
reconveyance, but the amount paid for a conveyance under this paragraph may be taken
into account by the county board when setting the terms of a future sale of the same
property to the same governmental subdivision under paragraph (b) or (d). If the lands
are unplatted and located outside of an incorporated municipality and the commissioner
of natural resources determines there is a mineral use potential, the sale is subject to the
approval of the commissioner of natural resources.

(i) A park and recreation board in a city of the first class is a governmental
subdivision for the purposes of this section.

(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed
by the commissioner of revenue in the name of the state to a governmental subdivision for
a school forest under section 89.41. An application that includes a statement of facts as
to the use to be made of the tract and the favorable recommendation of the county board
and the commissioner of natural resources must be submitted to the commissioner of
revenue. No monetary compensation or consideration is required for the conveyance, but
the conveyance is subject to the conditional use and reversion provisions of subdivisions
1c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the
property back to the state in trust for the taxing districts. The deed of reconveyance is
subject to approval by the commissioner of revenue.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2014, section 282.01, subdivision 1d, is amended to read:


Subd. 1d.

Reverter for failure to use; conveyance to state.

(a) After three years
from the date of any conveyance of tax-forfeited land to a governmental subdivision for
an authorized public use as provided in this section, regardless of when the deed for the
authorized public use was executed, if the governmental subdivision has failed to put the
land to that use, or abandons that use, the governing body of the subdivision must: (1)
with the approval of the county board, purchase the property for an authorized public
purpose at the present market value as determined by the county board, or (2) authorize
the proper officers to convey the land, or the part of the land not required for an authorized
public use, to the state of Minnesota in trust for the taxing districts. If the governing body
purchases the property under clause (1), the commissioner of revenue shall, upon proper
application submitted by the county auditornew text begin and upon the reconveyance of the land subject
to the conditional use deed to the state
new text end, convey the property on behalf of the state by
quitclaim deed to the subdivision free of a use restriction and the possibility of reversion
or defeasement. If the governing body decides to reconvey the property to the state under
this clause, the officers shall execute a deed of conveyance immediately. The conveyance
is subject to the approval of the commissioner and its form must be approved by the
attorney general. For 15 years from the date of the conveyance, there is no failure to put
the land to the authorized public use and no abandonment of that use if a formal plan of
the governmental subdivision, including, but not limited to, a comprehensive plan or land
use plan, shows an intended future use of the land for the authorized public use.

(b) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue on or after January 1,
2007, may be acquired by that governmental subdivision after 15 years from the date
of the conveyance if the commissioner determines upon written application from the
subdivision that the subdivision has in fact put the property to the authorized public use for
which it was conveyed, and the subdivision has made a finding that it has no current plans
to change the use of the lands. Prior to conveying the property, the commissioner shall
inquire whether the county board where the land is located objects to a conveyance of the
property to the subdivision without conditions and without further act by or obligation
of the subdivision. If the county does not object within 60 days, and the commissioner
makes a favorable determination, the commissioner shall issue a quitclaim deed on behalf
of the state unconditionally conveying the property to the governmental subdivision. For
purposes of this paragraph, demonstration of an intended future use for the authorized
public use in a formal plan of the governmental subdivision does not constitute use for
that authorized public use.

(c) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue before January 1, 2007,
is released from the use restriction and possibility of reversion on January 1, 2022, if the
county board records a resolution describing the land and citing this paragraph. The
county board may authorize the county treasurer to deduct the amount of the recording
fees from future settlements of property taxes to the subdivision.

(d) Except for tax-forfeited land conveyed to establish a school forest under section
89.41, property conveyed under a conditional use deed executed under this section by
the commissioner of revenue, regardless of when the deed for the authorized public use
was executed, is released from the use restriction and reverter, and any use restriction or
reverter for which no declaration of reversion has been recorded with the county recorder
or registrar of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30
years from the date the deed was acknowledged; or (3) final resolution of an appeal to
district court under subdivision 1e, if a lis pendens related to the appeal is recorded in the
office of the county recorder or registrar of titles, as appropriate, prior to January 1, 2015.

(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a
school forest under section 89.41 is subject to a perpetual conditional use deed and reverter.
The property reverts to the state in trust for the taxing districts by operation of law if the
commissioner of natural resources determines and reports to the commissioner of revenue
under section 89.41, subdivision 3, that the governmental subdivision has failed to use the
land for school forest purposes for three consecutive years. The commissioner of revenue
shall record a declaration of reversion for land that has reverted under this paragraph.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Laws 2014, chapter 308, article 9, section 94, is amended to read:


Sec. 94. REPEALER.

(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision
19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and

Minnesota Rules,
part 8007.0200, are repealed.

(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11,
subdivision 2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51,
53, 67, 72, and 82; deleted text begin272.027, subdivision 2;deleted text end 272.031; 273.015, subdivision 1; 273.03,
subdivision 3; 273.075; 273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77;
279.32; 281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20,
subdivision 4; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision
7; 297A.666; 297A.71, subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08,
subdivision 11; 297H.10, subdivision 2; 469.174, subdivision 10c; 469.175, subdivision
2b; 469.176, subdivision 1i; 469.177, subdivision 10; 477A.0124, subdivisions 1 and 6;
and 505.173,

Minnesota Statutes 2013 Supplement, section 273.1103, Laws 1993, chapter
375, article 9, section 47, and Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800;
and 8130.7500, subpart 7, are repealed.

(c) Minnesota Statutes 2012, section 469.1764, is repealed.

(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision
38; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338;
469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and

Minnesota Statutes 2013
Supplement, section 469.340, subdivision 4, are repealed.

(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.

Sec. 11. new text beginREVIVAL AND REENACTMENT.
new text end

new text begin Pursuant to Minnesota Statutes, section 645.36, section 272.027, subdivision 2, is
revived and reenacted effective retroactively from May 20, 2014.
new text end

new text begin EFFECTIVE DATE. new text end

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

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

new text begin Minnesota Statutes 2014, sections 273.111, subdivision 9a; and 281.22, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 5

MISCELLANEOUS

Section 1.

Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read:


Subd. 5.

Debt.

(a) "Debt" means a legal obligation of a natural person to pay a fixed
and certain amount of money, which equals or exceeds $25 and which is due and payable
to a claimant agency. The term includes criminal fines imposed under section 609.10 or
609.125, fines imposed for petty misdemeanors as defined in section 609.02, subdivision
4a
, and restitution. A debt may arise under a contractual or statutory obligation, a court
order, or other legal obligation, but need not have been reduced to judgment.

A debt includes any legal obligation of a current recipient of assistance which is
based on overpayment of an assistance grant where that payment is based on a client
waiver or an administrative or judicial finding of an intentional program violation;
or where the debt is owed to a program wherein the debtor is not a client at the time
notification is provided to initiate recovery under this chapter and the debtor is not a
current recipient of food support, transitional child care, or transitional medical assistance.

(b) A debt does not include any legal obligation to pay a claimant agency for medical
care, including hospitalization if the income of the debtor at the time when the medical
care was rendered does not exceed the following amount:

(1) for an unmarried debtor, an income of deleted text begin$8,800deleted text endnew text begin $12,360new text end or less;

(2) for a debtor with one dependent, an income of deleted text begin$11,270deleted text endnew text begin $15,830new text end or less;

(3) for a debtor with two dependents, an income of deleted text begin$13,330deleted text endnew text begin $18,730new text end or less;

(4) for a debtor with three dependents, an income of deleted text begin$15,120deleted text endnew text begin $21,240new text end or less;

(5) for a debtor with four dependents, an income of deleted text begin$15,950deleted text endnew text begin $22,410new text end or less; and

(6) for a debtor with five or more dependents, an income of deleted text begin$16,630deleted text endnew text begin $23,360new text end or less.

new text begin For purposes of this paragraph, "debtor" means the individual whose income,
together with the income of the individual's spouse if domiciled in the same household,
brings the individual within the income provisions of this paragraph. For purposes of this
paragraph, a spouse domiciled in the same household shall be considered a dependent.
new text end

(c) The commissioner shall adjust the income amounts in paragraph (b) by the
percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)(B) the word "deleted text begin1999deleted text endnew text begin 2014new text end" shall be substituted for
the word "1992." For deleted text begin2001deleted text endnew text begin 2015new text end, the commissioner shall then determine the percent
change from the 12 months ending on August 31, deleted text begin1999deleted text endnew text begin 2014new text end, to the 12 months ending on
August 31, deleted text begin2000deleted text endnew text begin 2014new text end, and in each subsequent year, from the 12 months ending on August
31, deleted text begin1999deleted text endnew text begin 2014new text end, to the 12 months ending on August 31 of the year preceding the taxable
year. The determination of the commissioner pursuant to this subdivision shall not be
considered a "rule" and shall not be subject to the Administrative Procedure Act contained
in chapter 14. The income amount as adjusted must be rounded to the nearest $10 amount.
If the amount ends in $5, the amount is rounded up to the nearest $10 amount.

(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of
the dollar amount of the premium authorized under section 256L.15, subdivision 1a.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 270C.35, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Dismissal of administrative appeal. new text end

new text begin If a taxpayer files an administrative
appeal for an order of the commissioner and also files an appeal to the Tax Court for
that same order of the commissioner, the administrative appeal is dismissed and the
commissioner is no longer required to make a determination of appeal under subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all administrative appeals filed
after June 30, 2015.
new text end

Sec. 3.

Minnesota Statutes 2014, section 270C.72, subdivision 4, is amended to read:


Subd. 4.

Licensing authority; duties.

All licensing authorities must require
the applicant to provide the applicant's Social Security number new text beginor individual taxpayer
identification number
new text endand Minnesota business identification numbernew text begin, as applicable,new text end on
all license applications. Upon request of the commissioner, the licensing authority
must provide the commissioner with a list of all applicants, including the name,
address, business name and address, new text beginand new text endSocial Security numberdeleted text begin,deleted text endnew text begin or individual taxpayer
identification number
new text end and business identification numbernew text begin, as applicable,new text end of each applicant.
The commissioner may request from a licensing authority a list of the applicants no more
than once each calendar year.

new text begin EFFECTIVE DATE. new text end

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