SF 20

as introduced - 94th Legislature, 2025 1st Special Session (2025 - 2025) Posted on 06/10/2025 09:44am

A bill for an act
relating to taxation; modifying individual income and corporate franchise taxes,
property taxes, sales and use taxes, excise taxes, local government aids, tax
increment financing provisions, local sales and use taxes, public finance provisions,
and other miscellaneous taxes and tax-related provisions; modifying the research
and development credit and making the credit partially refundable; modifying and
providing for income tax credits and subtractions; modifying provisions for the
political contribution refund; modifying property tax exemptions and classifications;
providing for land bank organizations; providing for June accelerated payments
of sales taxes by certain vendors; modifying the sales and use tax exemption for
data centers to remove the exemption for electricity; modifying payments under
the Sustainable Forest Incentive Act; modifying the appropriation for aquatic
invasive species aid; increasing the tax on cannabis products; eliminating local
cannabis aid; modifying provisions for the provider tax; repealing the controlled
substance tax; making related clarifying and technical changes; requiring and
modifying reports; modifying appropriations; appropriation money; amending
Minnesota Statutes 2024, sections 3.192; 3.8855, subdivisions 2, 3, 4, 5, 7, 8; 8.31,
subdivision 2c; 10A.02, subdivision 11b; 10A.322, subdivision 4; 16A.151,
subdivision 2; 37.31, subdivision 1; 41A.30, subdivision 5; 116U.27, subdivision
2; 270C.11, subdivision 4; 270C.445, subdivisions 3, 6; 272.02, subdivisions 7,
19, by adding subdivisions; 273.117; 273.128, subdivision 1; 273.13, subdivisions
22, 23; 273.38; 273.41; 279.37, subdivision 2; 289A.12, subdivision 18; 289A.20,
subdivision 4; 289A.60, subdivision 12, by adding a subdivision; 290.0132,
subdivisions 26, as amended, 34, by adding subdivisions; 290.0134, subdivision
20; 290.06, subdivision 23; 290.068, subdivision 3, by adding subdivisions;
290.0693, subdivisions 1, 4, 6, 8; 290.0695, subdivisions 1, 2, 3; 290.091,
subdivision 2; 290A.03, subdivision 3; 290A.19; 290C.07; 290C.10; 295.53,
subdivision 4a; 295.54, subdivision 2; 295.81, subdivisions 2, 10; 297A.68,
subdivision 42; 297A.71, subdivision 54; 297A.75, subdivisions 1, as amended,
2, 3; 297A.94; 297A.99, subdivision 10; 297A.995, subdivisions 2, 10; 297E.06,
subdivision 4; 297G.09, subdivision 10; 297I.20, subdivision 4; 373.40, subdivision
2; 446A.086, subdivisions 1, 2; 449.08; 462C.04, subdivision 2; 469.104; 469.154,
subdivision 4; 469.176, subdivision 4n; 469.1812, by adding a subdivision;
469.1813, subdivisions 1, 5, 6, by adding a subdivision; 474A.091, subdivisions
2, 2a; 475.521, subdivision 2; 477A.013, subdivision 1; 477A.19, subdivision 5;
609.902, subdivision 4; 641.23; Laws 1996, chapter 471, article 2, section 29,
subdivisions 1, as amended, 4, as amended; Laws 2010, chapter 389, article 7,
section 22, as amended; Laws 2013, chapter 143, article 9, section 21; Laws 2014,
chapter 308, article 6, section 9, as amended; Laws 2017, First Special Session
chapter 1, article 6, section 22; Laws 2023, chapter 1, sections 22; 28; proposing
coding for new law in Minnesota Statutes, chapter 8; repealing Minnesota Statutes
2024, sections 13.4967, subdivisions 2a, 5; 275.065, subdivision 3c; 276.04,
subdivision 2a; 290.0679; 297D.01; 297D.02; 297D.03; 297D.04; 297D.05;
297D.06; 297D.07; 297D.08; 297D.085; 297D.09; 297D.10; 297D.11; 297D.12;
297D.13; 477A.32.

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

ARTICLE 1

INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

Section 1.

Minnesota Statutes 2024, section 10A.02, subdivision 11b, is amended to read:

Subd. 11b.

Data privacy related to electronic reporting system.

new text begin (a) new text end The board may
develop and maintain systems to enable treasurers to enter and store electronic records
online for the purpose of complying with this chapter. Data entered into such systems by
treasurers or their authorized agents is not government data under chapter 13 and may not
be accessed or used by the board for any purpose without the treasurer's written consent.
Data from such systems that has been submitted to the board as a filed report is government
data under chapter 13.

new text begin (b) For purposes of administering the refund under section 290.06, subdivision 23, the
board may access or use the following data entered and stored in an electronic reporting
system and share the data with the commissioner of revenue: (1) the amount of the
contribution; (2) the name and address of the contributor; (3) any unique identifier for the
contribution; (4) the name and campaign identification number of the party or candidate
that received the contribution; and (5) the date on which the contribution was received. Data
accessed, used, or maintained by the board under this paragraph are classified as nonpublic
data, as defined in section 13.02, subdivision 9, and private data on individuals, as defined
in section 13.02, subdivision 12.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027.
new text end

Sec. 2.

Minnesota Statutes 2024, section 10A.322, subdivision 4, is amended to read:

Subd. 4.

Refund deleted text begin receipt forms deleted text end new text begin receipts new text end ; penalty.

(a) The board must make available
to a political party on request and to any candidate for whom an agreement under this section
is effective, deleted text begin a supply of deleted text end official refund deleted text begin receipt forms deleted text end new text begin receipts in an electronic format new text end that
state in boldface type that:

(1) a contributor who is given a receipt deleted text begin form deleted text end is eligible to claim a refund as provided in
section 290.06, subdivision 23; and

(2) if the contribution is to a candidate, that the candidate has signed an agreement to
limit campaign expenditures as provided in this section.

deleted text begin The forms must provide duplicate copies of the receipt to be attached to the contributor's
claim. deleted text end new text begin An official refund receipt must only be issued for a contribution of $10 or more.
Each receipt must be in an electronic format and include a unique receipt validation number
that allows the commissioner of revenue to verify the information on the receipt with the
Campaign Finance Board. A political party or candidate may provide a printed copy of the
electronic receipt to the contributor.
new text end

new text begin (b) Once each business day, the board must provide the commissioner of revenue a
receipt validation report. For each contribution reported to the board since the previous
report, the report must include:
new text end

new text begin (1) the date and amount of the contribution;
new text end

new text begin (2) the name and address of the contributor;
new text end

new text begin (3) the name and campaign identification number of the party or candidate that received
the contribution; and
new text end

new text begin (4) the receipt validation number assigned to the contribution.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The willful issuance of an official refund receipt deleted text begin form or a facsimile of one deleted text end to
any of the candidate's contributors by a candidate or treasurer of a candidate who did not
sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed
by the board.

deleted text begin (c) deleted text end new text begin (d) new text end The willful issuance of an official refund receipt deleted text begin form or a facsimile deleted text end to an
individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to
a civil penalty of up to $3,000 imposed by the board.

deleted text begin (d) deleted text end new text begin (e) new text end A violation of paragraph deleted text begin (b) deleted text end new text begin (c) new text end or deleted text begin (c) deleted text end new text begin (d) new text end is a misdemeanor.

new text begin (f) A receipt validation report and a receipt validation number prepared pursuant to this
section are classified as nonpublic data, as defined in section 13.02, subdivision 9, and
private data on individuals, as defined in section 13.02, subdivision 12.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contributions made after December
31, 2026.
new text end

Sec. 3.

Minnesota Statutes 2024, section 41A.30, subdivision 5, is amended to read:

Subd. 5.

Allocation limits.

(a) new text begin Subject to additional rollover allocation as provided in
paragraph (b), new text end for tax credits allowed under subdivision 2, the commissioner must not issue
credit certificates for more than new text begin $11,600,000 in total, allocated as follows new text end :

(1) $7,400,000 for fiscal year 2025; and

(2) $2,100,000 for each of fiscal years 2026 and 2027.

(b) deleted text begin If the entire amount authorized under paragraph (a) is not allocated in fiscal year
2025 or 2026, any remaining amount is available for allocation through fiscal year 2030
until the entire allocation has been made. deleted text end new text begin Any portion of a fiscal year's credits that is not
allocated by the commissioner does not cancel and may be carried forward to subsequent
fiscal years until all credits have been allocated, except that new text end the commissioner must not
issue any credit certificates for fiscal years beginning after June 30, 2030, and any unallocated
amounts cancel on that date.

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 2024, section 270C.445, subdivision 3, is amended to read:

Subd. 3.

Standards of conduct.

No tax preparer shall:

(1) without good cause fail to promptly, diligently, and without unreasonable delay
complete a client's return;

(2) obtain the signature of a client to a return or authorizing document that contains
blank spaces to be filled in after it has been signed;

(3) fail to sign a client's return when compensation for services rendered has been made;

(4) fail to provide on a client's return the preparer tax identification number when required
under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;

(5) fail or refuse to give a client a copy of any document requiring the client's signature
within a reasonable time after the client signs the document;

(6) fail to retain for at least four years a copy of a client's returns;

(7) fail to maintain a confidential relationship with clients or former clients;

(8) fail to take commercially reasonable measures to safeguard a client's nonpublic
personal information;

(9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or
indirectly, any false, deceptive, or misleading statement or representation relating to or in
connection with the offering or provision of tax preparation services;

(10) require a client to enter into a loan arrangement in order to complete a client's return;

(11) claim credits or deductions on a client's return for which the tax preparer knows or
reasonably should know the client does not qualify;

(12) report a household income on a client's claim filed under chapter 290A that the tax
preparer knows or reasonably should know is not accurate;

(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
13, 20, 20a, 26, or 28;

(14) whether or not acting as a taxpayer representative, fail to conform to the standards
of conduct required by Minnesota Rules, part 8052.0300, subpart 4;

(15) whether or not acting as a taxpayer representative, engage in any conduct that is
incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;

(16) whether or not acting as a taxpayer representative, engage in any conduct that is
disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;

(17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
refund for tax preparation services;

(18) under any circumstances, withhold or fail to return to a client a document provided
by the client for use in preparing the client's return;

(19) take control or ownership of a client's refund by any means, including:

(i) directly or indirectly endorsing or otherwise negotiating a check or other refund
instrument, including an electronic version of a check;

(ii) directing an electronic or direct deposit of the refund into an account unless the
client's name is on the account; and

(iii) establishing or using an account in the preparer's name to receive a client's refund
through a direct deposit or any other instrument unless the client's name is also on the
account deleted text begin , except that a taxpayer may assign the portion of a refund representing the Minnesota
education credit available under section 290.0674 to a bank account without the client's
name, as provided under section 290.0679 deleted text end ;

(20) fail to act in the best interests of the client;

(21) fail to safeguard and account for any money handled for the client;

(22) fail to disclose all material facts of which the preparer has knowledge which might
reasonably affect the client's rights and interests;

(23) violate any provision of section 332.37;

(24) include any of the following in any document provided or signed in connection
with the provision of tax preparation services:

(i) a hold harmless clause;

(ii) a confession of judgment or a power of attorney to confess judgment against the
client or appear as the client in any judicial proceeding;

(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
a debtor;

(iv) an assignment of or an order for payment of wages or other compensation for
services;

(v) a provision in which the client agrees not to assert any claim or defense otherwise
available;

(vi) a waiver of any provision of this section or a release of any obligation required to
be performed on the part of the tax preparer; or

(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
a class basis; or

(25) if making, providing, or facilitating a refund anticipation loan, fail to provide all
disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a
form that may be retained by the client.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end

Sec. 5.

Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 36. new text end

new text begin Discharges of indebtedness; coerced debt. new text end

new text begin The amount of discharge of
indebtedness awarded to a claimant under section 332.74, subdivision 3, is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 6.

Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 37. new text end

new text begin Consumer enforcement public compensation payments. new text end

new text begin The amount of
consumer enforcement public compensation received as a distribution to an eligible consumer
under section 8.37, subdivision 5, is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 7.

Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 38. new text end

new text begin Student loan education assistance paid by critical access dental clinics. new text end

new text begin (a)
The amount of student loan educational assistance payments that is received from a critical
access dental clinic is a subtraction.
new text end

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

new text begin (c) "Critical access dental clinic" means a dentist or dental clinic that is designated as a
critical access dental provider under section 256B.76, subdivision 4.
new text end

new text begin (d) "Student loan educational assistance payments" means payments by an employer on
the education loan of an employee that are included in the definition of educational assistance
under section 127(c)(1)(B) of the Internal Revenue Code, disregarding the expiration of
that clause. Student loan educational assistance payments are limited to amounts in excess
of the limit in section 127(a)(2) of the Internal Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end

Sec. 8.

Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 39. new text end

new text begin Foreign service pension; retirement pay. new text end

new text begin (a) Compensation received from
a pension or other retirement pay from the federal government for service in the foreign
service and established under United States Code, title 22, sections 4041 to 4069 and 4071,
is a subtraction.
new text end

new text begin (b) The subtraction equals the product of:
new text end

new text begin (1) the amount of compensation received under paragraph (a); and
new text end

new text begin (2) the number of years of foreign service divided by the total number of years of civil
service for which the taxpayer receives pension income.
new text end

new text begin (c) Any amount used to claim the subtraction in this subdivision must not be used to
claim the subtraction in subdivision 34.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 9.

Minnesota Statutes 2024, section 290.06, subdivision 23, is amended to read:

Subd. 23.

Refund of contributions to political parties and candidates.

(a) A taxpayer
may claim a refund equal to the amount of the taxpayer's contributions made in the calendar
year to candidates and to a political party. The maximum new text begin total new text end refund new text begin per calendar year new text end for
an individual must not exceed $75 and for a married couple, filing jointly, must not exceed
$150. new text begin The commissioner must not issue a refund, whether in one payment or in aggregate,
to a taxpayer that exceeds the maximum refund amounts specified in this subdivision. new text end A
refund of a contribution is allowed only if the taxpayer files new text begin :
new text end

new text begin (1) new text end a form required by the commissioner and attaches to the form deleted text begin a copy of deleted text end an official
refund receipt deleted text begin form deleted text end issued by the candidate or party and signed by the candidate, the treasurer
of the candidate's principal campaign committee, or the chair or treasurer of the party unit,
after the contribution was received deleted text begin . The receipt forms must be numbered, and the data on
the receipt that are not public must be made available to the campaign finance and public
disclosure board upon its request. deleted text end new text begin ; or
new text end

new text begin (2) a claim using the electronic filing system authorized in paragraph (i).
new text end

new text begin The form or claim must include one or more unique receipt validation numbers from receipts
issued pursuant to section 10A.322, subdivision 4.
new text end

new text begin (b) new text end A claim must be filed with the commissioner no sooner than January 1 of the calendar
year in which the contribution was made and no later than April 15 of the calendar year
following the calendar year in which the contribution was made. deleted text begin A taxpayer may file only
one claim per calendar year. deleted text end new text begin A claim must be for a minimum of $10. new text end Amounts paid by the
commissioner after June 15 of the calendar year following the calendar year in which the
contribution was made must include interest at the rate specified in section 270C.405.

deleted text begin (b) deleted text end new text begin (c) new text end No refund is allowed under this subdivision for a contribution to a candidate
unless the candidate:

(1) has signed an agreement to limit campaign expenditures as provided in section
10A.322;

(2) is seeking an office for which voluntary spending limits are specified in section
10A.25; and

(3) has designated a principal campaign committee.

This subdivision does not limit the campaign expenditures of a candidate who does not
sign an agreement but accepts a contribution for which the contributor improperly claims
a refund.

deleted text begin (c) deleted text end new text begin (d) new text end For purposes of this subdivision, "political party" means a major political party
as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion
on the income tax or property tax refund form under section 10A.31, subdivision 3a.

A "major party" or "minor party" includes the aggregate of that party's organization
within each house of the legislature, the state party organization, and the party organization
within congressional districts, counties, legislative districts, municipalities, and precincts.

"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a
candidate for judicial office.

"Contribution" means a gift of money.

deleted text begin (d) deleted text end new text begin (e) new text end The commissioner shall make copies of the form available to the public and
candidates upon request.

deleted text begin (e) deleted text end new text begin (f) new text end The following data collected or maintained by the commissioner under this
subdivision are private: the identities of individuals claiming a refund, the identities of
candidates to whom those individuals have made contributions, and the amount of each
contribution.

deleted text begin (f) deleted text end new text begin (g) new text end The commissioner shall report to the campaign finance and public disclosure
board by each August 1 a summary showing the total number and aggregate amount of
political contribution refunds made on behalf of each candidate and each political party.
These data are public.

deleted text begin (g) deleted text end new text begin (h) new text end The amount necessary to pay claims for the refund provided in this section is
appropriated from the general fund to the commissioner of revenue.

deleted text begin (h) For a taxpayer who files a claim for refund via the Internet or other electronic means,
the commissioner may accept the number on the official receipt as documentation that a
contribution was made rather than the actual receipt as required by paragraph (a).
deleted text end

new text begin (i) The commissioner must establish an electronic filing system by which refunds are
claimed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contributions made after December
31, 2026.
new text end

Sec. 10.

Minnesota Statutes 2024, section 290.068, subdivision 3, is amended to read:

Subd. 3.

Limitation; carryover.

(a) The credit new text begin for taxable years beginning before January
1, 2025, new text end shall not exceed the liability for tax.

new text begin (b) new text end If the amount of the credit allowed new text begin for the taxable year new text end exceeds the liability for tax
of the taxpayer, but is allowed as a result of the liability for tax of other members of the
unitary group deleted text begin for the taxable year deleted text end , the taxpayer must allocate the excess as a research credit
to another member of the unitary group.

deleted text begin (b) deleted text end new text begin (c) new text end In the case of a corporation which is a partner in a partnership, the credit allowed
for the taxable year shall not exceed the lesser of the amount determined under paragraph
deleted text begin (a) deleted text end new text begin (b) new text end for the taxable year or an amount (separately computed with respect to the
corporation's interest in the trade or business or entity) equal to the amount of tax attributable
to that portion of taxable income which is allocable or apportionable to the corporation's
interest in the trade or business or entity.

deleted text begin (c) deleted text end new text begin (d) new text end If the amount of the credit determined under this section for any taxable year
exceeds the limitation under deleted text begin paragraph deleted text end new text begin paragraphs new text end (a) deleted text begin or (b) deleted text end new text begin to (c) new text end , including amounts
allocated to other members of the unitary group, new text begin and is not refunded under subdivision 3a,
new text end the excess shall be a research credit carryover to each of the 15 succeeding taxable years.
The entire amount of the excess unused credit for the taxable year shall be carried first to
the earliest of the taxable years to which the credit may be carried and then to each successive
year to which the credit may be carried. The amount of the unused credit which may be
added under this clause shall not exceed the taxpayer's liability for tax less the research
credit for the taxable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 11.

Minnesota Statutes 2024, section 290.068, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Credit to be partially refundable. new text end

new text begin (a) If the amount of credit allowed in this
section for qualified research expenses incurred in taxable years beginning after December
31, 2024, exceeds the limitations in subdivision 3, paragraphs (a) to (c), including after the
credit amounts are allocated to other members of the unitary group, the taxpayer may elect
to receive a refund.
new text end

new text begin (b) The refundable amount allowed under paragraph (a) is equal to the refundability rate
calculated under subdivision 3b multiplied by the excess, if any, of the allowed credit amount
under subdivision 1 for the current taxable year remaining after the liability for tax has been
reduced to zero.
new text end

new text begin (c) Any amount not refunded under paragraph (a) is allowed as a carryover under
subdivision 3, paragraph (d).
new text end

new text begin (d) An election under paragraph (a) is irrevocable for the taxable year.
new text end

new text begin (e) This subdivision applies only to an allowed credit claimed on a tax return filed on
or before the due date under section 289A.18 or the extended due date under section 289A.19.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 12.

Minnesota Statutes 2024, section 290.068, is amended by adding a subdivision
to read:

new text begin Subd. 3b. new text end

new text begin Determination of refundability rate. new text end

new text begin (a) For purposes of this section, the
refundability rate equals:
new text end

new text begin (1) 19.2 percent for taxable years beginning after December 31, 2024, and before January
1, 2026; and
new text end

new text begin (2) 25 percent for taxable years beginning after December 31, 2025, and before January
1, 2028.
new text end

new text begin (b) For taxable years beginning after December 31, 2027, the refundability rate equals
the lesser of 25 percent or the rate determined under paragraph (c).
new text end

new text begin (c) By December 15, 2027, and each year thereafter, the commissioner must determine
the refundability rate for the immediately succeeding taxable year based on the most recent
November forecast required under section 16A.103. If the commissioner determines that
the total amount of refunds paid under this section will exceed $25,000,000 for the
immediately succeeding taxable year, the commissioner must adjust the refundability rate
so the total amount of projected refunds paid in the immediately succeeding taxable year
will approximate $25,000,000 or less. The percentage must be rounded to the nearest whole
percentage point. The commissioner must publish the refundability rate on the department's
external website.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 13.

Minnesota Statutes 2024, section 290.068, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Appropriation. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2024, section 290.0695, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

new text begin (b) "Credit certificate" means the certificate issued by the commissioner of transportation
under subdivision 3, paragraph (a).
new text end

deleted text begin (b) deleted text end new text begin (c) new text end "Eligible taxpayer" means any railroad that is classified by the United States
Surface Transportation Board as a Class II or Class III railroad.

deleted text begin (c) deleted text end new text begin (d) new text end "Eligible transferee" means any taxpayer subject to tax under this chapter or
chapter 297I.

deleted text begin (d) deleted text end new text begin (e) new text end "Qualified railroad reconstruction or replacement expenditures" means gross
expenditures in the taxable year for maintenance, reconstruction, or replacement of railroad
infrastructure, including track, roadbed, bridges, industrial leads and sidings, and track-related
structures owned or leased by a Class II or Class III railroad in Minnesota as of January 1,
2021. Qualified railroad reconstruction or replacement expenditures also includes new
construction of industrial leads, switches, spurs and sidings and extensions of existing sidings
in Minnesota by a Class II or Class III railroad.

new text begin (f) "Transfer credit certificate" means the certificate issued to a transferee by the
commissioner under subdivision 3, paragraph (d).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 15.

Minnesota Statutes 2024, section 290.0695, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Transferability deleted text end new text begin Credit certificates new text end ; written agreement required; deleted text begin credit
certificate deleted text end new text begin transferability new text end .

(a) new text begin To qualify for a credit under this section, an eligible taxpayer
must apply to the commissioner of transportation for a credit certificate. The application
for the credit certificate must be in the form and manner prescribed by the commissioner
of transportation, in consultation with the commissioner. If the application is approved, the
commissioner of transportation must issue the credit certificate to the eligible taxpayer
within 30 days of receipt of the application. The credit certificate must state the number of
miles of qualified railroad reconstruction or replacement expenditures in the taxable year
and the total amount of credit calculated under subdivision 2, paragraph (a). The
commissioner of transportation must provide a copy of the credit certificate to the
commissioner. The commissioner of transportation must not issue more than one credit
certificate to an eligible taxpayer in a taxable year.
new text end

new text begin (b) By written agreement, new text end an eligible taxpayer may transfer the credit allowed under
this section deleted text begin by written agreement deleted text end to an eligible transferee deleted text begin . The amount of the transferred
credit is limited to the unused, remaining portion of the credit. deleted text end new text begin as follows:
new text end

new text begin (1) any amount of the credit allowed that is stated in the credit certificate before any of
the credit is claimed; or
new text end

new text begin (2) the entire amount of the credit carryover in each of the five succeeding taxable years.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The eligible taxpayer and the eligible transferee must jointly file a copy of the
written transfer agreement with the commissioner within 30 days of the transfer. The written
agreement must contain the name, address, and taxpayer identification number of the parties
to the transfer; the taxable year the eligible taxpayer incurred the qualified expenditures;
the amount of credit being transferred; and the taxable year or years for which the transferred
credit may be claimed.

deleted text begin (c) deleted text end new text begin (d) new text end The commissioner must issue a new text begin transfer new text end credit certificate to the transferee within
30 days of the joint filing of a copy of the written transfer agreement with the commissioner.

deleted text begin (d) In the case of an audit or assessment, the transferee is liable for repayment of credits
claimed in excess of the allowed amount.
deleted text end

new text begin (e) An eligible taxpayer must not transfer a credit to an eligible transferee more than
once in a taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 16.

Minnesota Statutes 2024, section 290.091, subdivision 2, is amended to read:

Subd. 2.

Definitions.

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

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

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

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

(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;

(ii) the medical expense deduction;

(iii) the casualty, theft, and disaster loss deduction; and

(iv) the impairment-related work expenses of a person with a disability;

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

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

(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2;

(6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16;

(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent
not included in the addition required under clause (6); and

(8) to the extent not included in federal alternative minimum taxable income, the amount
of foreign-derived intangible income deducted under section 250 of the Internal Revenue
Code;

less the sum of the amounts determined under the following:

(i) interest income as defined in section 290.0132, subdivision 2;

(ii) an overpayment of state income tax as provided by section 290.0132, subdivision
3, to the extent included in federal alternative minimum taxable income;

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

(iv) amounts subtracted from federal taxable or adjusted gross income as provided by
section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, 26 to 29, 31, new text begin and new text end 34 deleted text begin , and 35 deleted text end new text begin to 39 new text end ;

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

(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122,
subdivision 7.

In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Code, except alternative minimum
taxable income must be increased by the addition in section 290.0131, subdivision 16.

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

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

(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section, section 290.033, and section 290.032), reduced by the sum of the
nonrefundable credits allowed under this chapter.

(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 17.

Minnesota Statutes 2024, section 290A.03, subdivision 3, is amended to read:

Subd. 3.

Income.

(a) "Income" means the sum of the following:

(1) federal adjusted gross income as defined in the Internal Revenue Code; and

(2) the sum of the following amounts to the extent not included in clause (1):

(i) all nontaxable income;

(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;

(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;

(iv) cash public assistance and relief;

(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;

(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;

(vii) workers' compensation;

(viii) nontaxable strike benefits;

(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;

(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;

(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;

(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;

(xiii) nontaxable scholarship or fellowship grants;

(xiv) alimony received to the extent not included in the recipient's income;

(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;

(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and

(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.

In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.

(b) "Income" does not include:

(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;

(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;

(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;

(4) surplus food or other relief in kind supplied by a governmental agency;

(5) relief granted under this chapter;

(6) child support payments received under a temporary or final decree of dissolution or
legal separation;

(7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16;

(8) alimony paid; deleted text begin or
deleted text end

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

new text begin (10) to the extent included in federal adjusted gross income, the amount of discharge of
indebtedness awarded to the claimant under section 332.74, subdivision 3; or
new text end

new text begin (11) to the extent included in federal adjusted gross income, the amount of consumer
enforcement public compensation received as a distribution to an eligible consumer under
section 8.37, subdivision 5 new text end .

(c) The sum of the following amounts may be subtracted from income:

(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;

(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;

(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;

(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;

(5) for the claimant's fifth dependent, the exemption amount; and

(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
before December 31 of the year for which the taxes were levied, the exemption amount.

(d) For purposes of this subdivision, the following terms have the meanings given:

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

(2) "retirement base amount" means the deductible amount for the taxable year for the
claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
to whether the claimant or spouse claimed a deduction; and

(3) "traditional or Roth style retirement account or plan" means retirement plans under
sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on property taxes payable
in 2026 and thereafter.
new text end

Sec. 18. new text begin CORRECTION OF ERRORS; CERTAIN RETIREMENT
CONTRIBUTIONS.
new text end

new text begin An annuity contract provider that receives a contribution from an individual to an
individual retirement plan on an annuity contract no later than the time prescribed by law
under section 219(f)(3) of the Internal Revenue Code, must treat the contribution as having
been made on account of the preceding taxable year. This section applies only if the annuity
contract provider receives notification from the individual indicating the tax year designation
for the contribution within three years from the original due date for filing the return for
that taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for contributions made in
calendar year 2023 and designated to apply to the tax year 2022 contribution limitation.
new text end

Sec. 19. new text begin STIPEND PAYMENTS TO SEIU HEALTHCARE MINNESOTA & IOWA
BARGAINING UNIT MEMBERS.
new text end

new text begin (a) The commissioner of human services shall issue stipend payments to collective
bargaining unit members as required by the labor agreement between the state of Minnesota
and the Service Employees International Union (SEIU) Healthcare Minnesota & Iowa.
new text end

new text begin (b) The definitions in Minnesota Statutes, section 290.01, apply to this section.
new text end

new text begin (c) For purposes of this section, "subtraction" has the meaning given in Minnesota
Statutes, section 290.0132, subdivision 1, and the rules in that subdivision apply to this
section.
new text end

new text begin (d) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa
collective bargaining unit members under this section is a subtraction.
new text end

new text begin (e) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa
collective bargaining unit members under this section is excluded from alternative minimum
taxable income under Minnesota Statutes, section 290.091, and income as defined in
Minnesota Statutes, sections 290.0693, subdivision 1, paragraph (i), and 290A.03, subdivision
3.
new text end

new text begin (f) Notwithstanding any law to the contrary, stipend payments under this section must
not be considered income, assets, or personal property for purposes of determining or
recertifying eligibility for:
new text end

new text begin (1) child care assistance programs under Minnesota Statutes, chapter 142E;
new text end

new text begin (2) general assistance, Minnesota supplemental aid, and food support under Minnesota
Statutes, chapter 256D;
new text end

new text begin (3) housing support under Minnesota Statutes, chapter 256I;
new text end

new text begin (4) the Minnesota family investment program under Minnesota Statutes, chapter 142G;
and
new text end

new text begin (5) economic assistance programs under Minnesota Statutes, chapter 256P.
new text end

new text begin (g) The commissioner of human services must not consider stipend payments under this
section as income or assets under Minnesota Statutes, section 256B.056, subdivision 1a,
paragraph (a); 3; or 3c, or for persons with eligibility determined under Minnesota Statutes,
section 256B.057, subdivision 3, 3a, or 3b.
new text end

new text begin (h) If this section is enacted more than once during the 2025 first special session in
substantially the same form, this section prevails regardless of order of enactment.
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. 20. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, sections 13.4967, subdivision 2a; and 290.0679, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assignments after December 31, 2025.
new text end

ARTICLE 2

PROPERTY TAXES

Section 1.

Minnesota Statutes 2024, section 272.02, subdivision 7, is amended to read:

Subd. 7.

Institutions of public charity.

(a) Institutions of purely public charity that are
exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code
are exempt if they meet the requirements of this subdivision. In determining whether real
property is exempt under this subdivision, the following factors must be considered:

(1) whether the stated purpose of the undertaking is to be helpful to others without
immediate expectation of material reward;

(2) whether the institution of public charity is supported by material donations, gifts, or
government grants for services to the public in whole or in part;

(3) whether a material number of the recipients of the charity receive benefits or services
at reduced or no cost, or whether the organization provides services to the public that alleviate
burdens or responsibilities that would otherwise be borne by the government;

(4) whether the income received, including material gifts and donations, produces a
profit to the charitable institution that is not distributed to private interests;

(5) whether the beneficiaries of the charity are restricted or unrestricted, and, if restricted,
whether the class of persons to whom the charity is made available is one having a reasonable
relationship to the charitable objectives; and

(6) whether dividends, in form or substance, or assets upon dissolution, are not available
to private interests.

A charitable organization must satisfy the factors in clauses (1) to (6) for its property to
be exempt under this subdivision, unless there is a reasonable justification for failing to
meet the factors in clause (2), (3), or (5), and the organization provides to the assessor the
factual basis for that justification. If there is reasonable justification for failing to meet the
factors in clause (2), (3), or (5), an organization is a purely public charity under this
subdivision without meeting those factors. After an exemption is properly granted under
this subdivision, it will remain in effect unless there is a material change in facts.

(b) For purposes of this subdivision, a grant is a written instrument or electronic document
defining a legal relationship between a granting agency and a grantee when the principal
purpose of the relationship is to transfer cash or something of value to the grantee to support
a public purpose authorized by law in a general manner instead of acquiring by professional
or technical contract, purchase, lease, or barter property or services for the direct benefit or
use of the granting agency.

new text begin (c) Rental housing property does not qualify for an exemption under this subdivision
unless: (1) the use of the rental property is in furtherance of the tax-exempt charitable
purpose of the organization; and (2) the use of the rental property does not further the
tax-exempt charitable purpose of the organization solely by providing rental housing to
persons or families on the basis of the income characteristics of those persons or families.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end In determining whether rental housing property qualifies for exemption under
this subdivision, the following are not gifts or donations to the owner of the rental housing:

(1) rent assistance provided by the government to or on behalf of tenants; and

(2) financing assistance or tax credits provided by the government to the owner on
condition that specific units or a specific quantity of units be set aside for persons or families
with certain income characteristics.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2026 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2024, section 272.02, subdivision 19, is amended to read:

Subd. 19.

Property used to distribute electricity to farmers.

Electric power distribution deleted text begin
lines and their attachments and appurtenances deleted text end new text begin systems, not including substations, or
transmission or generation equipment new text end , that are used primarily for supplying electricity to
farmers at retail, are exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2025
and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
read:

new text begin Subd. 106. new text end

new text begin Certain property owned by an Indian Tribe. new text end

new text begin (a) Property is exempt that:
new text end

new text begin (1) was classified as class 3a under section 273.13, subdivision 24, for taxes payable in
2025;
new text end

new text begin (2) is located in a city of the first class with a population greater than 400,000 as of the
2020 federal census;
new text end

new text begin (3) was on January 1, 2024, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota;
and
new text end

new text begin (4) is used exclusively for Tribal purposes or institutions of purely public charity as
defined in subdivision 7.
new text end

new text begin (b) For the purposes of this subdivision, a "Tribal purpose" means a public purpose
defined in subdivision 8 and includes noncommercial Tribal government activities. Property
that qualifies for the exemption under this subdivision is limited to one parcel that does not
exceed 40,000 square feet. Property used for single-family housing, market-rate apartments,
agriculture, or forestry does not qualify for this exemption.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2026.
new text end

Sec. 4.

Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
read:

new text begin Subd. 107. new text end

new text begin Certain property owned by an Indian Tribe. new text end

new text begin (a) Property is exempt that:
new text end

new text begin (1) was classified as class 2b under section 273.13, subdivision 23, for taxes payable in
2025;
new text end

new text begin (2) is located within a county with a population greater than 5,580 but less than 5,620
according to the 2020 federal census;
new text end

new text begin (3) is located in an unorganized territory with a population less than 800 according to
the 2020 federal census; and
new text end

new text begin (4) was on January 2, 2023, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota.
new text end

new text begin (b) Property that qualifies for exemption under this subdivision is limited to no more
than five parcels.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2026.
new text end

Sec. 5.

Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
read:

new text begin Subd. 108. new text end

new text begin Certain property owned by an Indian Tribe. new text end

new text begin (a) Property is exempt that:
new text end

new text begin (1) is located in a city of the first class with a population greater than 400,000 as of the
2020 federal census;
new text end

new text begin (2) was on January 1, 2025, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota;
and
new text end

new text begin (3) contains a mixed-use development constructed after January 1, 2024, that includes
space used exclusively for noncommercial Tribal government activities.
new text end

new text begin (b) Any portion of the property used for housing, parking facilities, agriculture, or forestry
does not qualify for this exemption.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2026.
new text end

Sec. 6.

Minnesota Statutes 2024, section 273.117, is amended to read:

273.117 CONSERVATION PROPERTY TAX VALUATION.

new text begin (a) new text end The value of real property deleted text begin which deleted text end new text begin that new text end is subject to a conservation restriction or
easement deleted text begin shall deleted text end new text begin must new text end not be reduced by the assessor if:

deleted text begin (a) deleted text end new text begin (1) new text end the restriction or easement is for a conservation purpose and is recorded on the
property; and

deleted text begin (b) deleted text end new text begin (2) new text end the property is being used in accordance with the terms of the conservation
restriction or easement.

new text begin (b) new text end This section does not apply to new text begin :
new text end

(1) conservation restrictions or easements covering riparian buffers along lakes, rivers,
and streams that are used for water quantity or quality control;

(2) easements in a county that has adopted, by referendum, a program to protect farmland
and natural areas since 1999; deleted text begin or
deleted text end

(3) conservation restrictions or easements entered into prior to May 23, 2013 deleted text begin . deleted text end new text begin ; or
new text end

new text begin (4) conservation easements in a metropolitan county that has adopted, by resolution, a
program to protect farmland or natural areas. A metropolitan county that has adopted a
program to protect farmland or natural areas may, by resolution, authorize the assessor to
consider the impact of the conservation easement on the property's value. For purposes of
this clause, "metropolitan county" has the meaning given in section 473.121, subdivision
4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2026 and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2024, section 273.128, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) Low-income rental property classified as class 4d(1)
under section 273.13, subdivision 25, is entitled to valuation under this section if at least
20 percent of the units in the rental housing property meet any of the following qualifications:

(1) the units are subject to a housing assistance payments contract under Section 8 of
the United States Housing Act of 1937, as amended;

(2) the units are rent-restricted and income-restricted units of a qualified low-income
housing project receiving tax credits under section 42(g) of the Internal Revenue Code;

(3) the units are financed by the Rural Housing Service of the United States Department
of Agriculture and receive payments under the rental assistance program pursuant to section
521(a) of the Housing Act of 1949, as amended; or

(4) the units are subject to rent and income restrictions under the terms of financial
assistance provided to the rental housing property by the federal government or the state of
Minnesota, or a local unit of government, as evidenced by a document recorded against the
property. new text begin The restrictions under this clause must require assisted units to be occupied by
residents whose household income at the time of initial occupancy does not exceed 60
percent of the greater of area or state median income, adjusted for family size, as determined
by the United States Department of Housing and Urban Development. The restriction must
also require the rents for assisted units to not exceed 30 percent of 60 percent of the greater
of area or state median income, adjusted for family size, as determined by the United States
Department of Housing and Urban Development.
new text end

deleted text begin The restrictions must require assisted units to be occupied by residents whose household
income at the time of initial occupancy does not exceed 60 percent of the greater of area or
state median income, adjusted for family size, as determined by the United States Department
of Housing and Urban Development. The restriction must also require the rents for assisted
units to not exceed 30 percent of 60 percent of the greater of area or state median income,
adjusted for family size, as determined by the United States Department of Housing and
Urban Development.
deleted text end

(b) The owner of a property certified as class 4d(1) under this section must use the
property tax savings received from the 4d(1) classification for one or more of the following
eligible uses: property maintenance, property security, improvements to the property, rent
stabilization, or increases to the property's replacement reserve account. To maintain the
class 4d(1) classification, the property owner must annually reapply and certify to the
Housing Finance Agency that the property tax savings were used for one or more eligible
uses.

(c) In order to meet the requirements of this section, property which received the 4d(1)
classification in the prior year must demonstrate compliance with paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2026.
new text end

Sec. 8.

Minnesota Statutes 2024, section 273.13, subdivision 23, is amended to read:

Subd. 23.

Class 2.

(a) An agricultural homestead consists of class 2a agricultural land
that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class
2a land under the same ownership. The market value of the house and garage and immediately
surrounding one acre of land has the same classification rates as class 1a or 1b property
under subdivision 22. The value of the remaining land including improvements up to the
first tier valuation limit of agricultural homestead property has a classification rate of 0.5
percent of market value. The remaining property over the first tier has a classification rate
of one percent of market value. For purposes of this subdivision, the "first tier valuation
limit of agricultural homestead property" and "first tier" means the limit certified under
section 273.11, subdivision 23.

(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
are agricultural land and buildings. Class 2a property has a classification rate of one percent
of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
property must also include any property that would otherwise be classified as 2b, but is
interspersed with class 2a property, including but not limited to sloughs, wooded wind
shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
and other similar land that is impractical for the assessor to value separately from the rest
of the property or that is unlikely to be able to be sold separately from the rest of the property.

An assessor may classify the part of a parcel described in this subdivision that is used
for agricultural purposes as class 2a and the remainder in the class appropriate to its use.

(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that
are unplatted real estate, rural in character and not used for agricultural purposes, including
land used for growing trees for timber, lumber, and wood and wood products, that is not
improved with a structure. The presence of a minor, ancillary nonresidential structure as
defined by the commissioner of revenue does not disqualify the property from classification
under this paragraph. Any parcel of 20 acres or more improved with a structure that is not
a minor, ancillary nonresidential structure must be split-classified, and ten acres must be
assigned to the split parcel containing the structure. If a parcel of 20 acres or more is enrolled
in the sustainable forest management incentive program under chapter 290C, the number
of acres assigned to the split parcel improved with a structure that is not a minor, ancillary
nonresidential structure must equal three acres or the number of acres excluded from the
sustainable forest incentive act covenant due to the structure, whichever is greater. Class
2b property has a classification rate of one percent of market value unless it is part of an
agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).

(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
acres statewide per taxpayer that is being managed under a forest management plan that
meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource
management incentive program. It has a classification rate of .65 percent, provided that the
owner of the property must apply to the assessor in order for the property to initially qualify
for the reduced rate and provide the information required by the assessor to verify that the
property qualifies for the reduced rate. If the assessor receives the application and information
before May 1 in an assessment year, the property qualifies beginning with that assessment
year. If the assessor receives the application and information after April 30 in an assessment
year, the property may not qualify until the next assessment year. The commissioner of
natural resources must concur that the land is qualified. The commissioner of natural
resources shall annually provide county assessors verification information on a timely basis.
The presence of a minor, ancillary nonresidential structure as defined by the commissioner
of revenue does not disqualify the property from classification under this paragraph.

(e) Agricultural land as used in this section means:

(1) contiguous acreage of ten acres or more, used during the preceding year for
agricultural purposes; or

(2) contiguous acreage used during the preceding year for an intensive livestock or
poultry confinement operation, provided that land used only for pasturing or grazing does
not qualify under this clause.

"Agricultural purposes" as used in this section means the raising, cultivation, drying, or
storage of agricultural products for sale, or the storage of machinery or equipment used in
support of agricultural production by the same farm entity. For a property to be classified
as agricultural based only on the drying or storage of agricultural products, the products
being dried or stored must have been produced by the same farm entity as the entity operating
the drying or storage facility. "Agricultural purposes" also includes (i) enrollment in a local
conservation program or the Reinvest in Minnesota program under sections 103F.501 to
103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198
or a similar state or federal conservation program if the property was classified as agricultural
(A) under this subdivision for taxes payable in 2003 because of its enrollment in a qualifying
program and the land remains enrolled or (B) in the year prior to its enrollment, or (ii) use
of land, not to exceed three acres, to provide environmental benefits such as buffer strips,
old growth forest restoration or retention, or retention ponds to prevent soil erosion. For
purposes of this section, a "local conservation program" means a program administered by
a town, statutory or home rule charter city, or county, including a watershed district, water
management organization, or soil and water conservation district, in which landowners
voluntarily enroll land and receive incentive payments equal to at least $50 per acre in
exchange for use or other restrictions placed on the land. In order for property to qualify
under the local conservation program provision, a taxpayer must apply to the assessor by
February 1 of the assessment year and must submit the information required by the assessor,
including but not limited to a copy of the program requirements, the specific agreement
between the land owner and the local agency, if applicable, and a map of the conservation
area. Agricultural classification shall not be based upon the market value of any residential
structures on the parcel or contiguous parcels under the same ownership.

"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
of, a set of contiguous tax parcels under that section that are owned by the same person.

(f) Agricultural land under this section also includes:

(1) contiguous acreage that is less than ten acres in size and exclusively used in the
preceding year for raising or cultivating agricultural products; deleted text begin or
deleted text end

(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the
contiguous acreage exclusive of the house, garage, and surrounding one acre of land was
used in the preceding year for one or more of the following three uses:

(i) for an intensive grain drying or storage operation, or for intensive machinery or
equipment storage activities used to support agricultural activities on other parcels of property
operated by the same farming entity;

(ii) as a nursery, provided that only those acres used intensively to produce nursery stock
are considered agricultural land; or

(iii) for intensive market farming; deleted text begin for purposes of this paragraph, "market farming"
means the cultivation of one or more fruits or vegetables or production of animal or other
agricultural products for sale to local markets by the farmer or an organization with which
the farmer is affiliated. deleted text end new text begin or
new text end

new text begin (3) contiguous acreage that contains a residence and is less than 15 acres in size, if the
contiguous acreage inclusive of the house, garage, and surrounding one acre of land was
used in the preceding year for market farming and the owner provides the county assessor
with the filed federal Schedule F (Form 1040) for the most recent completed tax year that
reports gross income of at least $20,000.
new text end

new text begin For purposes of this paragraph, "market farming" means the cultivation of one or more
fruits or vegetables or production of animal or other agricultural products for sale to local
markets by the farmer or an organization with which the farmer is affiliated, and new text end "contiguous
acreage deleted text begin , deleted text end " deleted text begin for purposes of this paragraph, deleted text end means all of a tax parcel as described in section
272.193, or all of a set of contiguous tax parcels under that section that are owned by the
same person.

(g) Land shall be classified as agricultural even if all or a portion of the agricultural use
of that property is the leasing to, or use by another person for agricultural purposes.

Classification under this subdivision is not determinative for qualifying under section
273.111.

(h) The property classification under this section supersedes, for property tax purposes
only, any locally administered agricultural policies or land use restrictions that define
minimum or maximum farm acreage.

(i) The term "agricultural products" as used in this subdivision includes production for
sale of:

(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
animals, horticultural and nursery stock, new text begin floriculture, new text end fruit of all kinds, vegetables, forage,
grains, bees, and apiary products by the owner;

(2) aquacultural products for sale and consumption, as defined under section 17.47, if
the aquaculture occurs on land zoned for agricultural use;

(3) the commercial boarding of horses, which may include related horse training and
riding instruction, if the boarding is done on property that is also used for raising pasture
to graze horses or raising or cultivating other agricultural products as defined in clause (1);

(4) property which is owned and operated by nonprofit organizations used for equestrian
activities, excluding racing;

(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
97A.105, provided that the annual licensing report to the Department of Natural Resources,
which must be submitted annually by March 30 to the assessor, indicates that at least 500
birds were raised or used for breeding stock on the property during the preceding year and
that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a
shooting preserve licensed under section 97A.115;

(6) insects primarily bred to be used as food for animals;

(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold
for timber, lumber, wood, or wood products; and

(8) maple syrup taken from trees grown by a person licensed by the Minnesota
Department of Agriculture under chapter 28A as a food processor.

(j) If a parcel used for agricultural purposes is also used for commercial or industrial
purposes, including but not limited to:

(1) wholesale and retail sales;

(2) processing of raw agricultural products or other goods;

(3) warehousing or storage of processed goods; and

(4) office facilities for the support of the activities enumerated in clauses (1), (2), and
(3), the assessor shall classify the part of the parcel used for agricultural purposes as class
1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use.
The grading, sorting, and packaging of raw agricultural products for first sale is considered
an agricultural purpose. A greenhouse or other building where new text begin floricultural, new text end horticultural
or nursery products are grown that is also used for the conduct of retail sales must be
classified as agricultural if it is primarily used for the growing of new text begin floricultural, new text end horticultural
or nursery products from seed, cuttings, or roots and occasionally as a showroom for the
retail sale of those products. Use of a greenhouse or building only for the display of already
grown new text begin floricultural, new text end horticultural or nursery products does not qualify as an agricultural
purpose.

new text begin "Floriculture," for the purposes of this paragraph, includes production of bedding and garden
plants, foliage plants, potted flowering plants, and cut flowers.
new text end

(k) The assessor shall determine and list separately on the records the market value of
the homestead dwelling and the one acre of land on which that dwelling is located. If any
farm buildings or structures are located on this homesteaded acre of land, their market value
shall not be included in this separate determination.

(l) Class 2d airport landing area consists of a landing area or public access area of a
privately owned public use airport. It has a classification rate of one percent of market value.
To qualify for classification under this paragraph, a privately owned public use airport must
be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing
area" means that part of a privately owned public use airport properly cleared, regularly
maintained, and made available to the public for use by aircraft and includes runways,
taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing
area also includes land underlying both the primary surface and the approach surfaces that
comply with all of the following:

(i) the land is properly cleared and regularly maintained for the primary purposes of the
landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities
for servicing, repair, or maintenance of aircraft is not included as a landing area;

(ii) the land is part of the airport property; and

(iii) the land is not used for commercial or residential purposes.

The land contained in a landing area under this paragraph must be described and certified
by the commissioner of transportation. The certification is effective until it is modified, or
until the airport or landing area no longer meets the requirements of this paragraph. For
purposes of this paragraph, "public access area" means property used as an aircraft parking
ramp, apron, or storage hangar, or an arrival and departure building in connection with the
airport.

(m) Class 2e consists of land with a commercial aggregate deposit that is not actively
being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
located in a county that has elected to opt-out of the aggregate preservation program as
provided in section 273.1115, subdivision 6. It has a classification rate of one percent of
market value. To qualify for classification under this paragraph, the property must be at
least ten contiguous acres in size and the owner of the property must record with the county
recorder of the county in which the property is located an affidavit containing:

(1) a legal description of the property;

(2) a disclosure that the property contains a commercial aggregate deposit that is not
actively being mined but is present on the entire parcel enrolled;

(3) documentation that the conditional use under the county or local zoning ordinance
of this property is for mining; and

(4) documentation that a permit has been issued by the local unit of government or the
mining activity is allowed under local ordinance. The disclosure must include a statement
from a registered professional geologist, engineer, or soil scientist delineating the deposit
and certifying that it is a commercial aggregate deposit.

For purposes of this section and section 273.1115, "commercial aggregate deposit"
means a deposit that will yield crushed stone or sand and gravel that is suitable for use as
a construction aggregate; and "actively mined" means the removal of top soil and overburden
in preparation for excavation or excavation of a commercial deposit.

(n) When any portion of the property under this subdivision or subdivision 22 begins to
be actively mined, the owner must file a supplemental affidavit within 60 days from the
day any aggregate is removed stating the number of acres of the property that is actively
being mined. The acres actively being mined must be (1) valued and classified under
subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
resource preservation property tax program under section 273.1115, if the land was enrolled
in that program. Copies of the original affidavit and all supplemental affidavits must be
filed with the county assessor, the local zoning administrator, and the Department of Natural
Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
time a subsequent portion of the property is actively mined, provided that the minimum
acreage change is five acres, even if the actual mining activity constitutes less than five
acres.

(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not
rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in
section 14.386 concerning exempt rules do not apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2026.
new text end

Sec. 9.

Minnesota Statutes 2024, section 273.38, is amended to read:

273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.

The distribution deleted text begin lines and the attachments and appurtenances thereto deleted text end new text begin systems, not
including substations, or transmission or generation equipment, new text end of cooperative associations new text begin
new text end organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof
and supplemental thereto, and engaged in the electrical heat, light and power business, upon
a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections
273.40 and 273.41.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2025
and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2024, section 273.41, is amended to read:

273.41 AMOUNT OF TAX; DISTRIBUTION.

There is hereby imposed upon each such cooperative association on December 31 of
each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon deleted text begin
distribution lines and the attachments and appurtenances thereto of such associations deleted text end new text begin that
part of the association's distribution system, not including substations, or transmission or
generation equipment, new text end located in rural areas. The tax shall be payable on or before March
1 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion
thereof, is not paid within the time herein specified for the payment thereof, there shall be
added thereto a specific penalty equal to ten percent of the amount so remaining unpaid.
Such penalty shall be collected as part of said tax, and the amount of said tax not timely
paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
from the time such tax should have been paid until paid. The commissioner shall deposit
the amount so received in the general fund of the state treasury.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2025
and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2024, section 279.37, subdivision 2, is amended to read:

Subd. 2.

Installment payments.

(a) The owner of any such parcel, or any person to
whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
make and file with the county auditor of the county in which the parcel is located a written
offer to pay the current taxes each year before they become delinquent, or to contest the
taxes under chapter 278 and agree to confess judgment for the amount provided, as
determined by the county auditor. By filing the offer, the owner waives all irregularities in
connection with the tax proceedings affecting the parcel and any defense or objection which
the owner may have to the proceedings, and also waives the requirements of any notice of
default in the payment of any installment or interest to become due pursuant to the composite
judgment to be so entered. Unless the property is subject to subdivision 1a, with the offer,
the owner shall (i) tender one-tenth of the amount of the delinquent taxes, costs, penalty,
and interest, and (ii) tender all current year taxes and penalty due at the time the confession
of judgment is entered. In the offer, the owner shall agree to pay the balance in nine equal
installments, with interest as provided in section 279.03, payable annually on installments
remaining unpaid from time to time, on or before December 31 of each year following the
year in which judgment was confessed.

(b) For property which qualifies under section 279.03, subdivision 2, paragraph (b), each
year the commissioner shall set the interest rate for offers made under paragraph (a) at the
greater of five percent or deleted text begin two percent above deleted text end the prime rate charged by banks during the
six-month period ending on September 30 of that year, rounded to the nearest full percent,
provided that the rate must not exceed the maximum annum rate specified under section
279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the immediately
succeeding year. The commissioner's determination under this subdivision is not a rule
subject to the Administrative Procedure Act in chapter 14, including section 14.386. If a
default occurs in the payments under any confessed judgment entered under this paragraph,
the taxes and penalties due are subject to the interest rate specified in section 279.03.

For the purposes of this subdivision:

(1) the term "prime rate charged by banks" means the average predominant prime rate
quoted by commercial banks to large businesses, as determined by the Board of Governors
of the Federal Reserve System; and

(2) "default" means the cancellation of the confession of judgment due to nonpayment
of the current year tax or failure to make any installment payment required by this confessed
judgment within 60 days from the date on which payment was due.

(c) The interest rate established at the time judgment is confessed is fixed for the duration
of the judgment. By October 15 of each year, the commissioner of revenue must determine
the rate of interest as provided under paragraph (b) and, by November 1 of each year, must
certify the rate to the county auditor.

(d) A qualified property owner eligible to enter into a second confession of judgment
may do so at the interest rate provided in paragraph (b).

(e) Repurchase agreements or contracts for repurchase for properties being repurchased
under section 282.261 are not eligible to receive the interest rate under paragraph (b).

(f) The offer must be substantially as follows:

"To the court administrator of the district court of ........... county, I, ....................., am
the owner of the following described parcel of real estate located in .................... county,
Minnesota:

.............................. Upon that real estate there are delinquent taxes for the year ........., and
prior years, as follows: (here insert year of delinquency and the total amount of delinquent
taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
any defense or objection which I may have to them, and direct judgment to be entered for
the amount stated above, minus the sum of $............, to be paid with this document, which
is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
I agree to pay the balance of the judgment in nine or four equal, annual installments, with
interest as provided in section 279.03, payable annually, on the installments remaining
unpaid. I agree to pay the installments and interest on or before December 31 of each year
following the year in which this judgment is confessed and current taxes each year before
they become delinquent, or within 30 days after the entry of final judgment in proceedings
to contest the taxes under chapter 278.

Dated .............., ......."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 12.

Minnesota Statutes 2024, section 449.08, is amended to read:

449.08 TAX LEVY FOR FREE MUSIC IN THIRD CLASS CITIES.

The council of any city of the third class may levy a tax for the purpose of providing
free musical entertainment for the general public. The proceeds of this tax shall be used
only for the purpose of providing free musical entertainment for the public. The annual
expenditure for this purpose is limited to deleted text begin $3,000 deleted text end new text begin $10,000 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2024, section 469.1812, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Land bank organization. new text end

new text begin "Land bank organization" means an organization
that, at least in part, acquires, holds, or manages vacant, blighted, foreclosed, or tax-forfeited
property for future development, redevelopment, or disposal, and that is either:
new text end

new text begin (1) a nonprofit organization exempt from federal income taxation under section 501(c)(3)
of the Internal Revenue Code whose governing board members are elected or appointed by
the state of Minnesota, any political subdivision of the state of Minnesota, or an agency of
the state of Minnesota or its political subdivisions, or are elected or appointed officials of
the state of Minnesota or any of its political subdivisions; or
new text end

new text begin (2) a limited liability company of which a nonprofit organization described in clause (1)
is the sole member.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2024, section 469.1813, subdivision 1, is amended to read:

Subdivision 1.

Authority.

The governing body of a political subdivision may grant a
current or prospective abatement, by contract or otherwise, of the taxes imposed by the
political subdivision on a parcel of property, which may include personal property and
machinery, or defer the payments of the taxes and abate the interest and penalty that otherwise
would apply, if:

(1) it expects the benefits to the political subdivision of the proposed abatement agreement
to at least equal the costs to the political subdivision of the proposed agreement or intends
the abatement to phase in a property tax increase, as provided in clause (2)(vii); and

(2) it finds that doing so is in the public interest because it will:

(i) increase or preserve tax base;

(ii) provide employment opportunities in the political subdivision;

(iii) provide or help acquire or construct public facilities;

(iv) help redevelop or renew blighted areas;

(v) help provide access to services for residents of the political subdivision;

(vi) finance or provide public infrastructure;

(vii) phase in a property tax increase on the parcel resulting from an increase of 50
percent or more in one year on the estimated market value of the parcel, other than increase
attributable to improvement of the parcel; deleted text begin or
deleted text end

(viii) stabilize the tax base through equalization of property tax revenues for a specified
period of time with respect to a taxpayer whose real and personal property is subject to
valuation under Minnesota Rules, chapter 8100 deleted text begin . deleted text end new text begin ;
new text end

new text begin (ix) provide for the development of affordable housing to households at or below 80
percent of area median income as estimated by the United States Department of Housing
and Urban Development for the political subdivision in which the project is located; or
new text end

new text begin (x) allow the property to be held by a land bank organization for future development.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2024, section 469.1813, subdivision 6, is amended to read:

Subd. 6.

Duration limit.

(a) A political subdivision may grant an abatement for a period
no longer than 15 years, except as provided under deleted text begin paragraph deleted text end new text begin paragraphs new text end (b) new text begin and (c) new text end . The
abatement period commences in the first year in which the abatement granted is either paid
or retained in accordance with section 469.1815, subdivision 2. The subdivision may specify
in the abatement resolution a shorter duration. If the resolution does not specify a period of
time, the abatement is for eight years. If an abatement has been granted to a parcel of property
and the period of the abatement has expired, the political subdivision that granted the
abatement may not grant another abatement for eight years after the expiration of the first
abatement. This prohibition does not apply to improvements added after and not subject to
the first abatement. Economic abatement agreements for real and personal property subject
to valuation under Minnesota Rules, chapter 8100, are not subject to this prohibition and
may be granted successively.

(b) A political subdivision proposing to abate taxes for a parcel may request, in writing,
that the other political subdivisions in which the parcel is located grant an abatement for
the property. If one of the other political subdivisions declines, in writing, to grant an
abatement or if 90 days pass after receipt of the request to grant an abatement without a
written response from one of the political subdivisions, the duration limit for an abatement
for the parcel by the requesting political subdivision and any other participating political
subdivision is increased to 20 years. If the political subdivision which declined to grant an
abatement later grants an abatement for the parcel, the 20-year duration limit is reduced by
one year for each year that the declining political subdivision grants an abatement for the
parcel during the period of the abatement granted by the requesting political subdivision.
The duration limit may not be reduced below the limit under paragraph (a).

new text begin (c) An abatement under subdivision 1, clause (2), items (ix) and (x), may be granted for
a period no longer than five years. This limit also applies if the resolution does not specify
a period of time.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for abatement resolutions approved after
the day following final enactment.
new text end

Sec. 16.

Minnesota Statutes 2024, section 469.1813, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Repayment. new text end

new text begin A land bank organization receiving an abatement under
subdivision 1, clause (2), item (ix) or (x), must repay the abatement with interest if the land
for which the abatement was granted is used for a purpose other than the purpose given by
the land bank organization prior to redevelopment, as determined by the governing body
of the political subdivision that granted the abatement. The repayment must be paid to the
county treasurer and the county auditor shall distribute the repayment in the same proportion
to the political subdivisions which granted the abatement. This subdivision applies
immediately after the abatement under this section expires and land is subject to repayment
under this subdivision for the same number of years that the abatement was granted. Interest
under this section is payable at the rate determined in section 270C.40, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 17. new text begin EXEMPTION FOR LAND HELD FOR ECONOMIC DEVELOPMENT.
new text end

new text begin Notwithstanding Minnesota Statutes, section 272.02, subdivision 39, property owned
by the Port Authority of the city of Bloomington that was acquired by the Port Authority
in May 2016 and exempt under Minnesota Statutes, section 272.02, subdivision 39, for
taxes payable in 2017 through 2025, must continue to be exempt pursuant to Minnesota
Statutes, section 272.02, subdivision 39, for taxes payable in 2026 through 2031 provided
that the requirements of that subdivision are met. Notwithstanding Minnesota Statutes,
section 272.025, an initial application for the exemption under this section must be filed
with the assessor by June 30, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Bloomington and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 18. new text begin PROPERTY TAX EXEMPTION; RED LAKE NATION COLLEGE.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 272.02, subdivision 38, paragraph (b),
and any other law to the contrary, property located in the city of Minneapolis acquired by
Red Lake Nation College Without Borders, LLC in either August 2021 or September 2021
is exempt from property taxes payable in 2022 and the portion of property taxes payable in
2021 due after the property was acquired. An amount necessary to make a payment to the
county for the property taxes that would be payable but for the exemption is appropriated
from the general fund to the commissioner of revenue in fiscal year 2026. All prior year
penalties, interest, and costs are canceled.
new text end

new text begin (b) By August 1, 2025, the auditor of the county in which the property is located must
certify to the commissioner of revenue the amount to be paid by the commissioner of revenue
to the county under paragraph (a). The commissioner of revenue must make this payment
by August 15, 2025.
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. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, sections 275.065, subdivision 3c; and 276.04, subdivision 2a, 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 beginning with property taxes payable
in 2026.
new text end

ARTICLE 3

SALES AND USE TAXES; EXCISE TAXES

Section 1.

Minnesota Statutes 2024, section 289A.20, subdivision 4, is amended to read:

Subd. 4.

Sales and use tax.

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

deleted text begin (b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30,
except a vendor of construction materials as defined in paragraph (e), must remit the June
liability for the next year in the following manner deleted text end :

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

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

new text begin (b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30,
except for taxes imposed under chapters 168E, 295, and 297H, must remit the June liability
for the next year in the following manner:
new text end

new text begin (1) Two business days before June 30 of calendar year 2027 and each year thereafter,
the vendor must remit 5.6 percent of the estimated June liability to the commissioner.
new text end

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

(c) A vendor having a liability of:

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

(2) $250,000 or more during a fiscal year must remit by electronic means all liabilities
in the manner provided in paragraph (a) on returns due for periods beginning in the
subsequent calendar year, except that a vendor subject to the remittance requirements of
paragraph (b) must remit the percentage of the estimated June liability, as provided in
paragraph (b), clause (1), which is due two business days before June 30. The remaining
amount of the June liability is due on August 20.

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

deleted text begin (e) For the purposes of paragraph (b), "vendor of construction materials" means a retailer
that sells any of the following construction materials, if 50 percent or more of the retailer's
sales revenue for the fiscal year ending June 30 is from the sale of those materials:
deleted text end

deleted text begin (1) lumber, veneer, plywood, wood siding, wood roofing;
deleted text end

deleted text begin (2) millwork, including wood trim, wood doors, wood windows, wood flooring; or
deleted text end

deleted text begin (3) concrete, cement, and masonry.
deleted text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes remitted after May 31, 2027.
new text end

Sec. 2.

Minnesota Statutes 2024, section 289A.60, is amended by adding a subdivision to
read:

new text begin Subd. 15a. new text end

new text begin Accelerated payment of June sales tax liability; penalty for
underpayment. new text end

new text begin For payments made after December 31, 2026, if a vendor is required by
law to submit an estimation of June sales tax liabilities and 5.6 percent payment by a certain
date, the vendor shall pay a penalty equal to ten percent of the amount of actual June liability
required to be paid in June less the amount remitted in June. The penalty must not be
imposed, however, if the amount remitted in June equals the lesser of 5.6 percent of the
preceding May's liability or 5.6 percent of the average monthly liability for the previous
calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes remitted after May 31, 2027.
new text end

Sec. 3.

Minnesota Statutes 2024, section 295.81, subdivision 2, is amended to read:

Subd. 2.

Gross receipts tax imposed.

(a) A tax equal to deleted text begin ten deleted text end new text begin 15 new text end percent of gross receipts
from retail sales in Minnesota of taxable cannabis products is imposed on any taxable
cannabis product retailer that sells these products to customers. A taxable cannabis product
retailer may but is not required to collect the tax imposed by this section from the purchaser
as long as the tax is separately stated on the receipt, invoice, bill of sale, or similar document
given to the purchaser.

(b) If a product subject to the tax imposed under this section is included in a bundled
transaction, the entire sales price of the bundled transaction is subject to the tax imposed
under this section.

(c) The tax imposed under this section is in addition to any other tax imposed on the
sale or use of taxable cannabis products.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2025.
new text end

Sec. 4.

Minnesota Statutes 2024, section 297A.68, subdivision 42, is amended to read:

Subd. 42.

Qualified data centers.

(a) Purchases of enterprise information technology
equipment and computer software for use in a qualified data center, or a qualified refurbished
data center, are exempt, except that computer software maintenance agreements are exempt
for purchases made after June 30, 2013. The tax on purchases exempt under this paragraph
must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied,
and then refunded after June 30, 2013, in the manner provided in section 297A.75. This
exemption includes enterprise information technology equipment and computer software
purchased to replace or upgrade enterprise information technology equipment and computer
software in a qualified data center, or a qualified refurbished data center.

deleted text begin (b) Electricity used or consumed in the operation of a qualified data center or qualified
refurbished data center is exempt.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end For purposes of this subdivision, "qualified data center" means a facility in
Minnesota:

(1) that is comprised of one or more buildings that consist in the aggregate of at least
25,000 square feet, and that are located on a single parcel or on contiguous parcels, where
the total cost of construction or refurbishment, investment in enterprise information
technology equipment, and computer software is at least $30,000,000 within a 48-month
period. The 48-month period begins no sooner than July 1, 2012, except that costs for
computer software maintenance agreements purchased before July 1, 2013, are not included
in determining if the $30,000,000 threshold has been met;

(2) that is constructed or substantially refurbished after June 30, 2012, where
"substantially refurbished" means that at least 25,000 square feet have been rebuilt or
modified, including:

(i) installation of enterprise information technology equipment; environmental control,
computer software, and energy efficiency improvements; and

(ii) building improvements; and

(3) that is used to house enterprise information technology equipment, where the facility
has the following characteristics:

(i) uninterruptible power supplies, generator backup power, or both;

(ii) sophisticated fire suppression and prevention systems; and

(iii) enhanced security. A facility will be considered to have enhanced security if it has
restricted access to the facility to selected personnel; permanent security guards; video
camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans,
such as hand scans and retinal or fingerprint recognition; or similar security features.

In determining whether the facility has the required square footage, the square footage
of the following spaces shall be included if the spaces support the operation of enterprise
information technology equipment: office space, meeting space, and mechanical and other
support facilities. For purposes of this subdivision, "computer software" includes, but is not
limited to, software utilized or loaded at a qualified data center or qualified refurbished data
center, including maintenance, licensing, and software customization.

deleted text begin (d) deleted text end new text begin (c) new text end For purposes of this subdivision, a "qualified refurbished data center" means an
existing facility that qualifies as a data center under paragraph deleted text begin (c) deleted text end new text begin (b) new text end , clauses (2) and (3),
but that is comprised of one or more buildings that consist in the aggregate of at least 25,000
square feet, and that are located on a single parcel or contiguous parcels, where the total
cost of construction or refurbishment, investment in enterprise information technology
equipment, and computer software is at least $50,000,000 within a 24-month period.

deleted text begin (e) deleted text end new text begin (d) new text end For purposes of this subdivision, "enterprise information technology equipment"
means computers and equipment supporting computing, networking, or data storage,
including servers and routers. It includes, but is not limited to: cooling systems, cooling
towers, and other temperature control infrastructure; power infrastructure for transformation,
distribution, or management of electricity used for the maintenance and operation of a
qualified data center or qualified refurbished data center, including but not limited to exterior
dedicated business-owned substations, backup power generation systems, battery systems,
and related infrastructure; and racking systems, cabling, and trays, which are necessary for
the maintenance and operation of the qualified data center or qualified refurbished data
center.

deleted text begin (f) deleted text end new text begin (e) new text end A qualified data center or qualified refurbished data center may claim the
exemptions in this subdivision for purchases made either within 20 years of the date of its
first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042,
whichever is earlier.

deleted text begin (g) deleted text end new text begin (f) new text end The purpose of this exemption is to create jobs in the construction and data center
industries.

deleted text begin (h) deleted text end new text begin (g) new text end This subdivision is effective for sales and purchases made before July 1, 2042.

deleted text begin (i) deleted text end new text begin (h) new text end The commissioner of employment and economic development must certify to the
commissioner of revenue, in a format approved by the commissioner of revenue, when a
qualified data center has met the requirements under paragraph deleted text begin (c) deleted text end new text begin (b) new text end or a qualified
refurbished data center has met the requirements under paragraph deleted text begin (d) deleted text end new text begin (c) new text end . The certification
must provide the following information regarding each qualified data center or qualified
refurbished data center:

(1) the total square footage amount;

(2) the total amount of construction or refurbishment costs and the total amount of
qualifying investments in enterprise information technology equipment and computer
software;

(3) the beginning and ending of the applicable period under either paragraph deleted text begin (c) or (d) deleted text end new text begin
(b) or (c) new text end in which the qualifying expenditures and purchases under clause (2) were made,
but in no case shall the period begin before July 1, 2012; and

(4) the date upon which the qualified data center first met the requirements under
paragraph deleted text begin (c) deleted text end new text begin (b) new text end or a qualified refurbished data center first met the requirements under
paragraph deleted text begin (d) deleted text end new text begin (c) new text end .

deleted text begin (j) deleted text end new text begin (k) new text end Any refund for sales tax paid on qualifying purchases under this subdivision must
not be issued unless the commissioner of revenue has received the certification required
under paragraph deleted text begin (i) deleted text end new text begin (h) new text end issued by the commissioner of employment and economic
development.

deleted text begin (k) deleted text end new text begin (j) new text end The commissioner of employment and economic development must annually
notify the commissioner of revenue of the qualified data centers that are projected to meet
the requirements under paragraph deleted text begin (c) deleted text end new text begin (b) new text end and the qualified refurbished data centers that are
projected to meet the requirements under paragraph deleted text begin (d) deleted text end new text begin (c) new text end in each of the next four years.
The notification must provide the information required under paragraph deleted text begin (i) deleted text end new text begin (h) new text end , clauses (1)
to (4), for each qualified data center or qualified refurbished data center.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2025.
new text end

Sec. 5.

Minnesota Statutes 2024, section 297G.09, subdivision 10, is amended to read:

Subd. 10.

Quarterly and annual payments and returns.

(a) If a manufacturer,
wholesaler, brewer, or importer has an average liquor tax liability equal to or less than $500
per month in any quarter of a calendar year, and has substantially complied with the state
tax laws during the preceding four calendar quarters, the manufacturer, wholesaler, brewer,
or importer may request authorization to file and pay the taxes quarterly in subsequent
calendar quarters. The authorization remains in effect during the period in which the
manufacturer's, wholesaler's, brewer's, or importer's quarterly returns reflect liquor tax
liabilities of less than $1,500 and there is continued compliance with state tax laws.

(b) If a manufacturer, wholesaler, brewer, or importer has an average liquor tax liability
equal to or less than $100 per month during a calendar year, and has substantially complied
with the state tax laws during that period, the manufacturer, wholesaler, brewer, or importer
may request authorization to file and pay the taxes annually in subsequent years. The
authorization remains in effect during the period in which the manufacturer's, wholesaler's,
brewer's, or importer's annual returns reflect liquor tax liabilities of less than $1,200 and
there is continued compliance with state tax laws. new text begin A qualified brewer as defined under
section 297G.04, subdivision 2, that meets the same criteria during a calendar year may file
and pay the taxes annually the following calendar year without authorization. A qualified
brewer must provide notice of intent to file and pay the taxes annually to the commissioner
in a form and manner prescribed by the commissioner.
new text end

(c) The commissioner may also grant quarterly or annual filing and payment
authorizations to manufacturers, wholesalers, brewers, or importers if the commissioner
concludes that the manufacturer's, wholesaler's, brewer's, or importer's future tax liabilities
will be less than the monthly totals identified in paragraphs (a) and (b). An authorization
granted under this paragraph is subject to the same conditions as an authorization granted
under paragraphs (a) and (b).

(d) The annual tax return and payments must be filed and paid on or before the 18th day
of January following the calendar year. The quarterly returns and payments must be filed
and paid on or before April 18 for the quarter ending March 31, on or before July 18 for
the quarter ending June 30, on or before October 18 for the quarter ending September 30,
and on or before January 18 for the quarter ending December 31.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026, for 2026 tax return
obligations.
new text end

ARTICLE 4

PROPERTY TAX AIDS

Section 1.

Minnesota Statutes 2024, section 290C.07, is amended to read:

290C.07 CALCULATION OF INCENTIVE PAYMENT.

(a) An approved claimant under the sustainable forest incentive program is eligible to
receive an annual payment for each acre of enrolled land, excluding any acre improved with
a paved trail under easement, lease, or terminable license to the state of Minnesota or a
political subdivision. The payment shall equal a percentage of the property tax that would
be paid on the land determined by using the previous year's statewide average total tax rate
for all taxes levied within townships and unorganized territories, the estimated market value
per acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for
claimants enrolling land that is subject to a conservation easement funded under section
97A.056 or a comparable permanent easement conveyed to a governmental or nonprofit
entity before May 31, 2013, deleted text begin 25 deleted text end new text begin 22.5 new text end percent; (2) for claimants enrolling land that is not
subject to a conservation easement under an eight-year covenant, deleted text begin 65 deleted text end new text begin 58.5 new text end percent; (3) for
claimants enrolling land that is not subject to a conservation easement under a 20-year
covenant, deleted text begin 90 deleted text end new text begin 81 new text end percent; and (4) for claimants enrolling land that is not subject to a
conservation easement under a 50-year covenant, deleted text begin 115 deleted text end new text begin 103.5 new text end percent.

(b) The calculated payment must not increase deleted text begin or decrease deleted text end by more than ten percent
relative to the payment received for the previous year. In no case may the payment be less
than new text begin 90 percent of new text end the amount paid to the claimant for the land enrolled in the program in
2017. deleted text begin If an eligible claimant elects to change the length of the covenant on enrolled land
on or before May 15, 2019, the limits under this paragraph do not apply and the claimant
must receive payment in the amount corresponding to the new covenant length as calculated
under paragraph (a).
deleted text end

(c) In addition to the payments provided under this section, a claimant enrolling more
than 1,920 acres shall be allowed an additional payment per acre equal to the amount
prescribed in paragraph (a), clause (1), for all acres of enrolled land on which public access
is allowed, as required under section 290C.03, paragraph (a), clause (6), excluding any land
subject to a conservation easement funded under section 97A.056, or a permanent easement
conveyed to a governmental or nonprofit entity that is required to allow for public access
under section 290C.03, paragraph (a), clause (6).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for payments in calendar year
2027.
new text end

Sec. 2.

Minnesota Statutes 2024, section 290C.10, is amended to read:

290C.10 WITHDRAWAL PROCEDURES.

(a) The current owner of land enrolled under the sustainable forest incentive program
for a minimum of one-half the number of years of the covenant's minimum duration may
notify the commissioner of the intent to terminate enrollment. Within 90 days of receipt of
notice to terminate enrollment, the commissioner shall inform the claimant in writing,
acknowledging receipt of this notice and indicating the effective date of termination from
the sustainable forest incentive program. Termination of enrollment in the sustainable forest
incentive program occurs on January 1 of the calendar year following receipt by the
commissioner of the termination notice, but no earlier than January 1 of the fifth, 11th, or
26th calendar year for the eight-, 20-, or 50-year respective minimum covenant, subject to
the applicable covenant duration period under section 290C.055. After the commissioner
issues an effective date of termination, a claimant wishing to continue the land's enrollment
in the sustainable forest incentive program beyond the termination date must apply for
enrollment as prescribed in section 290C.04. A claimant who withdraws a parcel of land
from this program may not reenroll the parcel for a period of three years. Within 90 days
after the termination date, the commissioner shall execute and acknowledge a document
releasing the land from the covenant required under this chapter. The document must be
mailed to the claimant and is entitled to be recorded.

(b) Notwithstanding paragraph (a), on request of the claimant, the commissioner may
allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the
state of Minnesota, any local government unit, or any other entity which has the power of
eminent domain acquires title or possession to the land for a public purpose. In the case of
an eligible acquisition under this paragraph, the commissioner shall execute and acknowledge
a document releasing the land acquired by the state, local government unit, or other entity
from the covenant.

(c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall
allow early withdrawal from the Sustainable Forest Incentive Act without penalty when a
government or nonprofit entity acquires a permanent conservation easement on the enrolled
property and the conservation easement is at least as restrictive as the covenant required
under section 290C.04. The commissioner of natural resources must notify the commissioner
of lands acquired under this paragraph that are eligible for withdrawal. In the case of an
eligible easement acquisition under this paragraph, the commissioner shall execute and
acknowledge a document releasing the land subject to the easement from the covenant.

(d) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall
allow early withdrawal from the Sustainable Forest Incentive Act without penalty for land
that is subject to fee or easement acquisition or lease to the state of Minnesota or a political
subdivision of the state for the public purpose of a paved trail. The commissioner of natural
resources must notify the commissioner of lands acquired under this paragraph that are
eligible for withdrawal. In the case of an eligible fee or easement acquisition or lease under
this paragraph, the commissioner shall execute and acknowledge a document releasing the
land subject to fee or easement acquisition or lease by the state or political subdivision of
the state.

(e) new text begin Notwithstanding paragraph (a), as provided in section 290C.055, paragraph (c), on
request of the claimant, the commissioner must allow early withdrawal from the Sustainable
Forest Incentive Act without penalty: (1) if there is a reduction in payments due to changes
in the payment formula under section 290C.07; or (2) if, as a result of executive action, the
amount of payment a claimant is eligible to receive under section 290C.07 is reduced or
limited.
new text end

new text begin (f) new text end All other enrolled land must remain in the program.

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 2024, section 477A.013, subdivision 1, is amended to read:

Subdivision 1.

Towns.

(a) deleted text begin In 2014 and thereafter, each town is eligible for a distribution
under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town
area factor, (iii) its population factor, and (iv) 0.0045. deleted text end As used in this subdivision, the
following terms have the meanings given them:

(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of
agricultural property located in a town, to the adjusted net tax capacity of all other property
located in the town. The agricultural property factor cannot exceed eight;

(2) "agricultural property" means property classified under section 273.13, as homestead
and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal
recreational property;

(3) "town area factor" means the most recent estimate of total acreage, not to exceed
50,000 acres, located in the township available as of July 1 in the aid calculation year,
estimated or established by:

(i) the United States Bureau of the Census;

(ii) the deleted text begin State Land Management Information Center deleted text end new text begin Minnesota Geospatial Information
Office new text end ; or

(iii) the secretary of state; deleted text begin and
deleted text end

(4) "population factor" means the square root of the town's population deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) "town aid factor" means the product of the town's (i) agricultural property factor, (ii)
town area factor, and (iii) population factor.
new text end

deleted text begin (b) If the sum of the aids payable to all towns under this subdivision exceeds the limit
under section 477A.03, subdivision 2c, the distribution to each town must be reduced
proportionately so that the total amount of aids distributed under this subdivision does not
exceed the limit in section 477A.03, subdivision 2c.
deleted text end

new text begin (b) Each town is eligible for a distribution under this subdivision equal to the product
of (1) the total amount available for town aid under section 477A.03, subdivision 2c, and
(2) the ratio of (i) the town's town aid factor, to (ii) the sum of the town aid factors for all
towns.
new text end

(c) Data used in calculating aids to towns under this subdivision, other than acreage,
shall be the most recently available data as of January 1 in the year in which the aid is
calculated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2026 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2024, section 477A.19, subdivision 5, is amended to read:

Subd. 5.

Appropriation.

new text begin For aids payable in 2025 and 2026, new text end $10,000,000 deleted text begin each year deleted text end is
new text begin annually new text end appropriated from the general fund to the commissioner of revenue to make the
payments required under this section. new text begin For aids payable in 2027 and thereafter, $5,000,000
is annually appropriated from the general fund to the commissioner of revenue to make the
payments required under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2026 and thereafter.
new text end

Sec. 5. new text begin AID PENALTY FORGIVENESS.
new text end

new text begin Subdivision 1. new text end

new text begin City of Stewart. new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.017,
subdivision 3, the city of Stewart must receive its aid payment for calendar year 2023 under
Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, section
477A.017, subdivision 3, provided the state auditor certifies to the commissioner of revenue
by June 16, 2025, that the state auditor received the annual financial reporting for 2022
from the city of Stewart by June 1, 2025. Upon certification from the state auditor to the
commissioner of revenue, the commissioner of revenue must make a payment of $87,501.50
to the city of Stewart by June 30, 2025.
new text end

new text begin Subd. 2. new text end

new text begin City of Alpha. new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.017,
subdivision 3, the city of Alpha must receive its aid payment for calendar year 2023 under
Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, section
477A.017, subdivision 3, provided the state auditor certifies to the commissioner of revenue
by June 16, 2025, that the state auditor received the annual financial reporting for 2022
from the city of Alpha by June 1, 2025. Upon certification from the state auditor to the
commissioner of revenue, the commissioner of revenue must make a payment of $18,472
to the city of Alpha by June 30, 2025.
new text end

new text begin Subd. 3. new text end

new text begin City of Odin. new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.017,
subdivision 3, the city of Odin must receive its aid payment for calendar year 2024 under
Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, section
477A.017, subdivision 3, and its small city assistance payment for calendar year 2024 under
Minnesota Statutes, section 162.145, that was withheld under Minnesota Statutes, section
162.145, subdivision 3, paragraph (c), provided the state auditor certifies to the commissioner
of revenue by June 16, 2025, that the state auditor received the annual financial reporting
for 2023 from the city of Odin by June 1, 2025. Upon certification from the state auditor to
the commissioner of revenue, the commissioner of revenue must make a payment of $39,909
to the city of Odin by June 30, 2025.
new text end

new text begin Subd. 4. new text end

new text begin City of Trosky. new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.017,
subdivision 3, the city of Trosky must receive its aid payment for calendar year 2024 under
Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, section
477A.017, subdivision 3, and its small city assistance payment for calendar year 2024 under
Minnesota Statutes, section 162.145, that was withheld under Minnesota Statutes, section
162.145, subdivision 3, paragraph (c), provided the state auditor certifies to the commissioner
of revenue by June 16, 2025, that the state auditor received the annual financial reporting
for 2023 from the city of Trosky by June 1, 2025. Upon certification from the state auditor
to the commissioner of revenue, the commissioner of revenue must make a payment of
$25,003 to the city of Trosky by June 30, 2025.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin The amounts necessary to make the payments required under
subdivisions 1 and 2 are appropriated in fiscal year 2025 from the general fund to the
commissioner of revenue. This is a onetime appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6. new text begin BASE YEAR FORMULA AID FOR THE CITY OF BALDWIN.
new text end

new text begin For the calculation under Minnesota Statutes, section 477A.013, subdivisions 8 and 9,
for aids payable in 2026, the city of Baldwin's aid for 2025, used in calculating aid payable
in 2026, is deemed to be equal to $2.85 multiplied by Baldwin's 2023 population.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2026 only.
new text end

ARTICLE 5

TAX INCREMENT FINANCING

Section 1.

Minnesota Statutes 2024, section 469.176, subdivision 4n, is amended to read:

Subd. 4n.

Temporary use of increment authorized.

(a) Notwithstanding any other
provision of this section or any other law to the contrary, except the requirements to pay
bonds to which increments are pledged, the authority may elect, by resolution, to transfer
unobligated increment for one or more of the following purposes:

(1) to provide improvements, loans, interest rate subsidies, or assistance in any form to
private development consisting of the construction or substantial rehabilitation of buildings
and ancillary facilities, if doing so will create or retain jobs in the state, including construction
jobs, and the construction commences before December 31, deleted text begin 2025 deleted text end new text begin 2026 new text end , and would not have
commenced before that date without the assistance; or

(2) to make an equity or similar investment in a corporation, partnership, or limited
liability company that the authority determines is necessary to make construction of a
development that meets the requirement of clause (1) financially feasible.

(b) For each calendar year for which transfers are permitted under this subdivision, the
maximum transfer equals the excess of the district's unobligated increment which includes
any increment not required for payments of obligations due during six months following
the transfer on outstanding bonds, binding contracts, and other outstanding financial
obligations of the district to which the district's increment is pledged.

(c) The authority may transfer increments permitted under this subdivision after creating
a written spending plan that authorizes the authority to take the action described in paragraph
(a) and details the use of transferred increment new text begin , including the use of interest earned on
transferred increment new text end . Additionally, the municipality must approve the authority's spending
plan after holding a public hearing. The municipality must publish notice of the hearing in
a newspaper of general circulation in the municipality and on the municipality's public
website at least ten days, but not more than 30 days, prior to the date of the hearing. new text begin Prior
to December 31, 2025, the municipality may amend a written spending plan to extend the
date by which transferred increment may be used, and to authorize use of interest earned
on transferred increment, after holding a public hearing as required in this section. A signed
and approved copy of the amended plan must be filed with the state auditor. Interest earned
on transferred increment may be treated the same as transferred increment regardless of
whether a municipality amends a spending plan.
new text end

(d) Increment that is improperly retained, received, spent, or transferred is not eligible
for transfer under this subdivision.

(e) An authority making a transfer under this subdivision must provide to the Office of
the State Auditor a copy of the spending plan approved and signed by the municipality.

(f) The authority to transfer increments under this subdivision expires on December 31,
2022. All transferred increments must be spent new text begin , loaned, invested, or otherwise irrevocably
committed new text end by December 31, 2025 new text begin , or by December 31, 2026, if authorized by an amended
spending plan pursuant to paragraph (c) new text end . Increment not spent new text begin , loaned, invested, or otherwise
irrevocably committed new text end by deleted text begin December 31, 2025 deleted text end new text begin the applicable deadline in the preceding
sentence new text end , must be returned to the district. new text begin The requirement to return increment to the district
includes any proceeds, principal, and interest received on loans of transferred increment;
interest or investment earnings on transferred increment; or other repayments or returns of
transferred increment defined as tax increment under section 469.174, subdivision 25, that
remain in the funds or accounts of the authority or municipality on the applicable deadline,
or that are subsequently received by the authority or municipality. new text end If the district has already
been decertified new text begin when increment is returned under this paragraph new text end , the increment shall be
treated as excess increment and distributed as provided in subdivision 2, paragraph (c),
clause (4).

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.

Laws 2010, chapter 389, article 7, section 22, as amended by Laws 2011, chapter
112, article 11, section 16, is amended to read:

Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.

(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax
increment financing plan for a district, the rules under this section apply to a redevelopment
tax increment financing district established by the city or an authority of the city. The
redevelopment tax increment district includes parcels within the area bounded on the east
by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama
Street, on the west by Llama Street, and on the south by a line running parallel to and 600
feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels
28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka County
Regional Park property in its entirety. A parcel within this area that is included in a tax
increment financing district that was certified before the date of enactment of this act may
be included in the district created under this act if the initial district is decertified.

(b) The requirements for qualifying a redevelopment tax increment district under
Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located
within the district.

(c) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
Eligible expenditures within the district include but are not limited to (1) the city's share of
the costs necessary to provide for the construction of the Northstar Transit Station and
related infrastructure, including structured parking, a pedestrian overpass, and roadway
improvements, (2) the cost of land acquired by the city or the housing and redevelopment
authority in and for the city of Ramsey within the district prior to the establishment of the
district, and (3) the cost of public improvements installed within the tax increment financing
district prior to the establishment of the district.

(d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
must be undertaken within a five-year period from the date of certification of a tax increment
financing district, is considered to be met for the district if the activities were undertaken
within ten years from the date of certification of the district.

(e) Except for administrative expenses, the in-district percentage for purposes of the
restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for this
district is 100 percent.

(f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not
apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred
after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of
the tax increment financing plan for the district.

new text begin (g) The requirement of Minnesota Statutes, section 469.178, subdivision 7, paragraph
(b), is considered to be met for the district if the city adopts interfund loan resolutions
reflecting the terms and conditions required by Minnesota Statutes, section 469.178,
subdivision 7, paragraph (d), by December 31, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city of Ramsey and its
chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and
3.
new text end

Sec. 3.

Laws 2013, chapter 143, article 9, section 21, is amended to read:

Sec. 21. CITY OF MAPLEWOOD; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.

(a) If the city of Maplewood elects, upon the adoption of a tax increment financing plan
for a district, the rules under this section apply to one or more redevelopment tax increment
financing districts established by the city or the economic development authority of the city.
The area within which the redevelopment tax increment districts may be created is parcel
362922240002 (the "parcel") or any replatted parcels constituting a part of the parcel and
the adjacent rights-of-way. For purposes of this section, the parcel is the "3M Renovation
and Retention Project Area" or "project area."

(b) The requirements for qualifying redevelopment tax increment districts under
Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcel, which is
deemed eligible for inclusion in a redevelopment tax increment district.

(c) The 90 percent rule under Minnesota Statutes, section 469.176, subdivision 4j, does
not apply to the parcel.

(d) The expenditures outside district rule under Minnesota Statutes, section 469.1763,
subdivision 2, does not apply; the five-year rule under Minnesota Statutes, section 469.1763,
subdivision 3, is extended to ten years; and expenditures must only be made within the
project area new text begin or the area bounded by State Highway 61 to the West, Interstate Highway 694
to the North, White Bear Avenue to the East, and both sides of Beam Avenue to the South new text end .

(e) If, after one year from the date of certification of the original net tax capacity of the
tax increment district, no demolition, rehabilitation, or renovation of property has been
commenced on a parcel located within the tax increment district, no additional tax increment
may be taken from that parcel, and the original net tax capacity of the parcel shall be excluded
from the original net tax capacity of the tax increment district. If 3M Company subsequently
commences demolition, rehabilitation, or renovation, the authority shall certify to the county
auditor that the activity has commenced, and the county auditor shall certify the net tax
capacity thereof as most recently certified by the commissioner of revenue and add it to the
original net tax capacity of the tax increment district. The authority must submit to the
county auditor evidence that the required activity has taken place for each parcel in the
district.

(f) The authority to approve a tax increment financing plan and to establish a tax
increment financing district under this section expires December 31, 2018.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city of Maplewood and
its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2
and 3.
new text end

Sec. 4.

Laws 2014, chapter 308, article 6, section 9, as amended by Laws 2017, First
Special Session chapter 1, article 6, section 12, is amended to read:

Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.

Subdivision 1.

Definitions.

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

(b) "City" means the city of Maple Grove.

(c) "Project area" means all or a portion of the area in the city commencing at a point
130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section
23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23,
thence south along said west line a distance of 1,200 feet; thence easterly to the east line of
Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance
of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue
North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter
of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west
line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55
degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section
24; thence West along said south line to the east right-of-way line of Zachary Lane; thence
North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said
Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence
South along the east line of said Outlot A and its southerly extension to the south right-of-way
line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of
Section 24; thence South along said east line to the north line of the South Half of the
Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way
line of Jefferson Highway North; thence southerly along the westerly right-of-way line of
Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west
right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot
A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North
Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east
line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south
line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State
Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
westerly right-of-way line of State Highway 169 and the northerly right-of-way line of
Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
and there terminating, provided that the project area includes the rights-of-way for all present
and future highway interchanges abutting the area described in this paragraph, and may
include any additional property necessary to cause the property included in the tax increment
financing district to consist of complete parcels.

(d) "Soil deficiency district" means a type of tax increment financing district consisting
of a portion of the project area in which the city finds by resolution that the following
conditions exist:

(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
the district require substantial filling, grading, or other physical preparation for use; and

(2) the estimated cost of the physical preparation under clause (1), but excluding costs
directly related to roads as defined in Minnesota Statutes, section 160.01, and local
improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses
(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before
completion of the preparation.

Subd. 2.

Special rules.

(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, soil condition district, or soil deficiency district established
by the city or a development authority of the city in the project area.

(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting of at
least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way,
are characterized by one or more of the following conditions:

(1) peat or other soils with geotechnical deficiencies that impair development of
commercial buildings or infrastructure;

(2) soils or terrain that require substantial filling in order to permit the development of
commercial buildings or infrastructure;

(3) landfills, dumps, or similar deposits of municipal or private waste;

(4) quarries or similar resource extraction sites;

(5) floodway; and

(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
subdivision 10.

(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
relevant condition if at least 70 percent of the area of the parcel contains the relevant
condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
substandard buildings if substandard buildings occupy at least 30 percent of the area of the
parcel.

(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to deleted text begin eight deleted text end new text begin 13 new text end years for any district, and Minnesota Statutes, section 469.1763,
subdivision 4, does not apply to any district.

(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax
increments paid by properties in any district, measured over the life of the district, may be
expended on activities outside the district but within the project area.

(f) For a soil deficiency district:

(1) increments may be collected through deleted text begin 20 deleted text end new text begin 25 new text end years after the receipt by the authority
of the first increment from the district;

(2) increments may be used only to:

(i) acquire parcels on which the improvements described in item (ii) will occur;

(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
cost of installing public improvements directly caused by the deficiencies; and

(iii) pay for the administrative expenses of the authority allocable to the district; and

(3) any parcel acquired with increments from the district must be sold at no less than
their fair market value.

(g) Increments spent for any infrastructure costs, whether inside a district or outside a
district but within the project area, are deemed to satisfy the requirements of Minnesota
Statutes, section 469.176, subdivision 4j.

(h) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires June 30, 2020.

(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
increments from a soil deficiency district to acquire parcels and for other infrastructure costs
either inside or outside of the district, but within the project area, if the acquisition or
infrastructure is for a qualified development. For purposes of this paragraph, a development
is a qualified development only if all of the following requirements are satisfied:

(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken
primarily to serve the development;

(2) the city has a binding, written commitment and adequate financial assurances from
the developer that the development will be constructed; and

(3) the development does not consist of retail trade or housing improvements.

new text begin EFFECTIVE DATE. new text end

new text begin (a) The amendment to subdivision 2, paragraph (d), is effective
the day after the governing body of the city of Maple Grove and its chief clerical officer
comply with the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and
3.
new text end

new text begin (b) The amendment to subdivision 2, paragraph (f), is effective upon compliance by the
city of Maple Grove, Hennepin County, and Independent School District No. 279 with the
requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end

Sec. 5.

Laws 2017, First Special Session chapter 1, article 6, section 22, is amended to
read:

Sec. 22. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.

(a) For purposes of computing the duration limits under Minnesota Statutes, section
469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
District. This authority is limited to the first four years of increment or increments derived
from taxes payable in 2023, whichever occurs first.

(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of
applying any limits based on when the district was certified under Minnesota Statutes,
section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed
to be January 2 of the property tax assessment year for which increment is first received
under the waiver.

new text begin (c) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for the Ford Site Redevelopment Tax Increment Financing District in the city
of St. Paul.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of St. Paul and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 6. new text begin CITY OF BLOOMINGTON; TEMPORARY USE OF INCREMENT;
EXTENSION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 469.176, subdivision 4n, the city of
Bloomington may amend its spending plan to spend, loan, or invest transferred increment,
including any interest or investment earnings on such transferred increment, as authorized
under Minnesota Statutes, section 469.176, subdivision 4n, through December 31, 2027,
provided that:
new text end

new text begin (1) construction commences prior to December 31, 2027;
new text end

new text begin (2) the transferred increment was collected from and used in TIF District No. 1-C or
TIF District No. 1-G, in the city of Bloomington; and
new text end

new text begin (3) the use of the transferred increment is detailed in the city's written spending plan
adopted pursuant to Minnesota Statutes, section 469.176, subdivision 4n, paragraph (c).
new text end

new text begin (b) Increment not spent, loaned, or invested by December 31, 2027, must be returned
to the district. The requirement to return increment to the district includes any proceeds,
principal, and interest received on loans of transferred increment; interest or investment
earnings on transferred increment; or other repayments or returns of transferred increment
defined as tax increment under Minnesota Statutes, section 469.174, subdivision 25, that
remain in the funds or accounts of the authority or municipality on December 31, 2027, or
that are subsequently received by the authority or municipality.
new text end

new text begin (c) If the city amends its spending plan pursuant to paragraph (a), the city must provide
a copy of its amended spending plan to the legislative committees with jurisdiction over
tax increment financing within 30 days.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Bloomington and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 7. new text begin CITY OF BROOKLYN CENTER; TIF AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
economic development authority of the city of Brooklyn Center or the city of Brooklyn
Center may establish not more than two redevelopment tax increment financing districts
located wholly within the area in the city identified as the "Opportunity Site," which includes
the area bounded by Shingle Creek Parkway from Hennepin County State-Aid Highway
10 to Summit Drive North; Summit Drive North from Shingle Creek Parkway to marked
Trunk Highway 100; marked Trunk Highway 100 from Summit Drive North to Hennepin
County State-Aid Highway 10; and Hennepin County State-Aid Highway 10 from marked
Trunk Highway 100 to Shingle Creek Parkway, together with internal and adjacent roads
and rights of way.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

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

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

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires on December 31, 2031.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Brooklyn Center and its chief clerical officer comply with the requirements of
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 8. new text begin CITY OF BROOKLYN PARK; TIF AUTHORITY; 610/ZANE AREA.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of districts. new text end

new text begin Under the special rules established in
subdivision 2, the economic development authority of the city of Brooklyn Park or the city
of Brooklyn Park may establish not more than two redevelopment districts located wholly
within the area of the city of Brooklyn Park. The districts may be composed of the following
parcels identified by their current parcel identification numbers together with adjacent and
internal roads and rights-of-way:
new text end

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new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or the authority establishes a tax increment financing
district under subdivision 1, the following special rules apply:
new text end

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

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment finance district under this section expires on December 31, 2031.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 9. new text begin CITY OF BROOKLYN PARK; TIF AUTHORITY; BIOTECH AREA.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of districts. new text end

new text begin Under the special rules established in
subdivision 2, the economic development authority of the city of Brooklyn Park or the city
of Brooklyn Park may establish not more than two redevelopment districts located wholly
within the area of the city of Brooklyn Park. The districts may be composed of the following
parcels identified by their current parcel identification numbers together with adjacent and
internal roads and rights-of-way:
new text end

new text begin 0711921110003 new text end	new text begin 0711921120006 new text end	new text begin 0711921110007 new text end	new text begin 0711921140001 new text end	new text begin 0711921140002 new text end
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new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or the authority establishes a tax increment financing
district under subdivision 1, the following special rules apply:
new text end

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

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment finance district under this section expires on December 31, 2031.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 10. new text begin CITY OF BROOKLYN PARK; TIF AUTHORITY; BROOKLYN
BOULEVARD/WEST BROADWAY AREA.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of districts. new text end

new text begin Under the special rules established in
subdivision 2, the economic development authority of the city of Brooklyn Park or the city
of Brooklyn Park may establish not more than two redevelopment tax increment financing
districts located wholly within the area of the city of Brooklyn Park. The districts may be
composed of the following parcels identified by their current parcel identification numbers
together with adjacent and internal roads and rights-of-way:
new text end

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new text begin and the following roadways within the city of Brooklyn Park: Brooklyn Boulevard (from
and including the intersection at Highway 169 to and including the intersection at Kentucky
Avenue North) and West Broadway Avenue (from and including the intersection at 75th
Avenue and to and including the intersection at 78th Avenue).
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or the authority establishes a tax increment financing
district under subdivision 1, the following special rules apply:
new text end

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

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment finance district under this section expires on December 31, 2031.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 11. new text begin CITY OF EDEN PRAIRIE; TAX INCREMENT FINANCING AUTHORITY;
EDEN PRAIRIE CENTER.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Pursuant to the special rules established in subdivision
2, the economic development authority of the city of Eden Prairie or the city of Eden Prairie
may establish not more than two redevelopment districts located within the area of the city
of Eden Prairie consisting of parcels, together with adjacent roads and rights-of-way, within
the area surrounded by Flying Cloud Drive, West 78th Street, and Prairie Center Drive.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

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

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

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2026.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Eden Prairie and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 12. new text begin CITY OF EDINA; 70TH & FRANCE TIF DISTRICT; FIVE-YEAR RULE
EXTENSION; DURATION EXTENSION.
new text end

new text begin (a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District 70th & France in the city of Edina.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
city of Edina or its housing and redevelopment authority may elect to extend the duration
of the district by ten years for Tax Increment Financing District 70th & France.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day after the governing body of the
city of Edina and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance
by the governing bodies of the city of Edina, Hennepin County, and Independent School
District No. 273 with the requirements of Minnesota Statutes, section 469.1782, subdivision
2.
new text end

Sec. 13. new text begin CITY OF EDINA; 72ND & FRANCE 2 TIF DISTRICT; FIVE-YEAR RULE
EXTENSION; DURATION EXTENSION.
new text end

new text begin (a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District 72nd & France 2 in the city of Edina.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
city of Edina or its housing and redevelopment authority may elect to extend the duration
of the district by five years for Tax Increment Financing District 72nd & France 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day after the governing body of the
city of Edina and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance
by the governing bodies of the city of Edina, Hennepin County, and Independent School
District No. 273 with the requirements of Minnesota Statutes, section 469.1782, subdivision
2.
new text end

Sec. 14. new text begin CITY OF MARSHALL; TEMPORARY USE OF INCREMENT;
EXTENSION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 469.176, subdivision 4n, paragraph (f),
the city of Marshall may elect to spend, loan, or invest transferred increment, including any
interest or investment earnings on such transferred increment, as authorized under Minnesota
Statutes, section 469.176, subdivision 4n, through December 31, 2027, provided that the
transferred increment was collected from TIF District No. 1-1, TIF District No. 1-7, or TIF
District No. 2-1, in the city of Marshall, and the use of the transferred increment is detailed
in the city's written spending plan adopted pursuant to Minnesota Statutes, section 469.176,
subdivision 4n, paragraph (c).
new text end

new text begin (b) Increment not spent, loaned, or invested by December 31, 2027, must be returned
to the district. The requirement to return increment to the district includes any proceeds,
principal, and interest received on loans of transferred increment; interest or investment
earnings on transferred increment; or other repayments or returns of transferred increment
defined as tax increment under Minnesota Statutes, section 469.174, subdivision 25, that
remain in the funds or accounts of the authority or municipality on December 31, 2027, or
that are subsequently received by the authority or municipality.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Marshall and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 15. new text begin CITY OF MINNETONKA; OPUS TIF DISTRICT; FIVE-YEAR RULE
EXTENSION.
new text end

new text begin (a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for the Opus tax increment financing district established in 2021 by the economic
development authority in the city of Minnetonka.
new text end

new text begin (b) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Minnetonka and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 16. new text begin CITY OF MOORHEAD; TAX INCREMENT FINANCING DISTRICT
NO. 31; FIVE-YEAR RULE EXTENSION.
new text end

new text begin The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District No. 31 in the city of Moorhead.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Moorhead and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 17. new text begin CITY OF OAKDALE; TEMPORARY USE OF INCREMENT; EXTENSION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 469.176, subdivision 4n, paragraph (f),
the city of Oakdale may elect to spend, loan, or invest transferred increment, including any
interest or investment earnings on such transferred increment, as authorized under Minnesota
Statutes, section 469.176, subdivision 4n, through December 31, 2027, provided that the
transferred increment was collected from TIF District No. 1-4 or TIF District No. 1-6, in
the city of Oakdale, and the use of the transferred increment is detailed in the city's written
spending plan adopted pursuant to Minnesota Statutes, section 469.176, subdivision 4n,
paragraph (c).
new text end

new text begin (b) Increment not spent, loaned, or invested by December 31, 2027, must be returned
to the district. The requirement to return increment to the district includes any proceeds,
principal, and interest received on loans of transferred increment; interest or investment
earnings on transferred increment; or other repayments or returns of transferred increment
defined as tax increment under Minnesota Statutes, section 469.174, subdivision 25, that
remain in the funds or accounts of the authority or municipality on December 31, 2027, or
that are subsequently received by the authority or municipality.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Oakdale and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 18. new text begin CITY OF PLYMOUTH; TAX INCREMENT FINANCING;
ESTABLISHMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
city of Plymouth may establish not more than two redevelopment districts located wholly
within the city of Plymouth, Hennepin County, Minnesota, limited to the area identified as
the city center district in the Plymouth, Minnesota Zoning Map in effect on January 1, 2024,
and adopted pursuant to section 21000.12 of the Plymouth Zoning Code of Ordinances.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

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

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

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district;
and
new text end

new text begin (3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years, and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2031.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Plymouth and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 19. new text begin CITY OF ST. CLOUD; TAX INCREMENT FINANCING;
ESTABLISHMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
economic development authority of the city of St. Cloud or the city of St. Cloud may establish
not more than two redevelopment districts adjacent to the Division Street corridor or within
the Central Business District or Fringe Central District, limited to the following parcels
identified by tax identification numbers, together with the adjacent roads and rights-of-way:
new text end

new text begin (1) in Stearns County: 82517020000 (Lady Slipper Catalyst Site); 82515440001 (North
Riverfront Catalyst Site); 82515470000; 82515480000 (Empire Catalyst Site); 82518760015
(Swan Lot Catalyst Site); 82528850020 (Riverboat Lot Catalyst Site); 82528850001 (Former
Herberger's); 82528850065 (Former Herberger's); 82528850005 (Former Herberger's);
82528850053; 82528850050; 82528850048 (Former Press Bar/Cowboy Jacks Lots); and
new text end

new text begin (2) in Benton County: 170037810 (Transit Oriented Development Catalyst Site);
170058101 (Ace Block Catalyst Site); 170042000; 170041600; 170041100; 170041601;
170041200; 170041800; 170059600 (Star Bank Catalyst Site); 170059300 (Riverfront South
Catalyst Site); 170058300; 170059200; 170058600; 170058800; 170059100; 170058900;
1700113900 (Transit Oriented Development Catalyst Site); 170060600; 170060700; and
170060800 (EDA Parking Lot & adjacent sites).
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

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

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

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district;
and
new text end

new text begin (3) increments generated from the districts may be expended for the reconstruction,
expansion, or new construction of adjacent public infrastructure, including but not limited
to public parking, streets, and utilities necessary to serve the development, and all
expenditures under this clause are deemed expended on activities within the district for
purposes of Minnesota Statutes, section 469.1763.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires on December 31, 2031.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city of St. Cloud and
its chief clerical officer comply with the requirements of Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 20. new text begin CITY OF ST. CLOUD; COOPER AVENUE REDEVELOPMENT TAX
INCREMENT FINANCING DISTRICT; FIVE-YEAR RULE EXTENSION.
new text end

new text begin The following special rule applies for the Cooper Avenue Redevelopment Tax Increment
Financing District administered by the city of St. Cloud. The requirement of Minnesota
Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year
period from the date of certification of a tax increment financing district, is extended by a
five-year period to April 30, 2031. Beginning in 2032, the requirements of Minnesota
Statutes, section 469.1763, subdivision 4, apply to the district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of St. Cloud and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

ARTICLE 6

LOCAL SALES AND USE TAXES

Section 1.

Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by
Laws 2006, chapter 259, article 3, section 3, Laws 2011, First Special Session chapter 7,
article 4, section 4, and Laws 2017, First Special Session chapter 1, article 5, section 6, is
amended to read:

Subdivision 1.

Sales tax authorized.

(a) Notwithstanding Minnesota Statutes, section
477A.016, or any other contrary provision of law, ordinance, or city charter, the city of
Hermantown may, by ordinance, impose an additional sales tax of up to one percent on
sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within
the city. The proceeds of the tax imposed under this section must be used to meet the costs
of:

(1) extending deleted text begin a deleted text end sewer interceptor deleted text begin line deleted text end new text begin lines new text end ;

(2) construction of deleted text begin a deleted text end booster pump deleted text begin station deleted text end new text begin stations new text end , reservoirs, and related improvements
to the water system; and

(3) construction of a building containing a police and fire station and an administrative
services facility.

(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a),
it may increase the tax to one percent to fund the purposes under paragraph (a) provided it
is approved by the voters at a general election held before December 31, 2012.

(c) As approved by the voters at the November 8, 2016, general election, the proceeds
under this section may also be used to meet the costs of debt service payments for
construction of the Hermantown Wellness Center.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without
local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end

Sec. 2.

Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws
2006, chapter 259, article 3, section 4, and Laws 2017, First Special Session chapter 1,
article 5, section 7, is amended to read:

Subd. 4.

Termination.

The tax authorized under this section terminates at the earlier of
(1) December 31, deleted text begin 2036 deleted text end new text begin 2046 new text end , or (2) when the Hermantown City Council first determines
that sufficient funds have been received from the tax to fund the costs, including bonds and
associated bond costs for the uses specified in subdivision 1. Any funds remaining after
completion of the improvements and retirement or redemption of the bonds may be placed
in the general fund of the city.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without
local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end

ARTICLE 7

PUBLIC FINANCE

Section 1.

Minnesota Statutes 2024, section 373.40, subdivision 2, is amended to read:

Subd. 2.

Application of election requirement.

(a) Bonds issued by a county to finance
capital improvements under an approved capital improvement plan are not subject to the
election requirements of section 375.18 or 475.58. The bonds must be approved by vote of
at least three-fifths of the members of the county board. In the case of a metropolitan county,
the bonds must be approved by vote of at least two-thirds of the members of the county
board.

(b) Before issuance of bonds qualifying under this section, the county must publish a
notice of its intention to issue the bonds and the date and time of a hearing to obtain public
comment on the matter. The notice must be published in the official newspaper of the county
or in a newspaper of general circulation in the county. The notice must be published at least
deleted text begin 14 deleted text end new text begin ten new text end , but not more than 28, days before the date of the hearing.

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

Sec. 2.

Minnesota Statutes 2024, section 446A.086, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) As used in this section, the following terms have the
meanings given.

(b) "Authority" means the Minnesota Public Facilities Authority.

(c) "Commissioner" means the commissioner of management and budget.

(d) "Debt obligation" means:

(1) a general obligation bond or note issued by a county, a bond or note to which the
general obligation of a county is pledged under section 469.034, subdivision 2, or a bond
or note payable from a county lease obligation under section 641.24, to provide funds for
the construction of:

(i) jails;

(ii) correctional facilities;

(iii) law enforcement facilities;

new text begin (iv) a courthouse or justice center, if connected to a jail, correctional facility, or other
law enforcement facility;
new text end

deleted text begin (iv) deleted text end new text begin (v) new text end social services and human services facilities;

deleted text begin (v) deleted text end new text begin (vi) new text end solid waste facilities; or

deleted text begin (vi) deleted text end new text begin (vii) new text end qualified housing development projects as defined in section 469.034,
subdivision 2; or

(2) a general obligation bond or note issued by a governmental unit to provide funds for
the construction, improvement, or rehabilitation of:

(i) wastewater facilities;

(ii) drinking water facilities;

(iii) stormwater facilities; or

(iv) any publicly owned building or infrastructure improvement that has received partial
funding from grants awarded by the commissioner of employment and economic development
related to redevelopment, contaminated site cleanup, bioscience, small cities development
programs, and rural business infrastructure programs, for which bonds are issued by the
authority under section 446A.087.

(e) "Governmental unit" means a county or a statutory or home rule charter city.

Sec. 3.

Minnesota Statutes 2024, section 446A.086, subdivision 2, is amended to read:

Subd. 2.

Application.

(a) This section provides a state guarantee of the payment of
principal and interest on debt obligations if:

(1) the obligations are issued for new projects new text begin or the refunding at a net present value
savings of debt service costs of obligations that are currently guaranteed pursuant to this
section new text end and are not issued for the purposes of refunding previous obligations new text begin other than as
described in this sentence new text end ;

(2) application to the Public Facilities Authority is made before issuance; and

(3) the obligations are covered by an agreement meeting the requirements of subdivision
3.

(b) Applications to be covered by the provisions of this section must be made in a form
and contain the information prescribed by the authority. Applications are subject to either
a fee of $500 for each bond issue requested by a county or governmental unit or the applicable
fees under section 446A.087.

(c) Application fees paid under this section must be deposited in a separate credit
enhancement bond guarantee account in the special revenue fund. Money in the credit
enhancement bond guarantee account is appropriated to the authority for purposes of
administering this section.

(d) Neither the authority nor the commissioner is required to promulgate administrative
rules under this section and the procedures and requirements established by the authority
or commissioner under this section are not subject to chapter 14.

Sec. 4.

Minnesota Statutes 2024, section 462C.04, subdivision 2, is amended to read:

Subd. 2.

Program review.

A public hearing shall be held on each program after one
publication of notice in a newspaper circulating generally in the city, at least deleted text begin 15 deleted text end new text begin ten new text end days
before the hearing. On or before the day on which notice of the public hearing is published,
the city shall submit the program to the Metropolitan Council, if the city is located in the
metropolitan area as defined in section 473.121, subdivision 2, or to the regional development
commission for the area in which the city is located, if any, for review and comment. The
appropriate reviewing agency shall comment on:

(a) whether the program furthers local and regional housing policies and is consistent
with the Metropolitan Development Guide, if the city is located in the metropolitan area,
or adopted policies of the regional development commission; and

(b) the compatibility of the program with the housing portion of the comprehensive plan
of the city, if any.

Review of the program may be conducted either by the board of the reviewing agency
or by the staff of the agency. Any comment submitted by the reviewing agency to the city
must be presented to the body considering the proposed program at the public hearing held
on the program.

A member or employee of the reviewing agency shall be permitted to present the
comments of the reviewing agency at the public hearing. After conducting the public hearing,
the program may be adopted with or without amendment, provided that any amendments
must not be inconsistent with the comments, if any, of the reviewing agency and must not
contain any material changes from the program submitted to the reviewing agency other
than changes in the financial aspects of any proposed issue of bonds or obligations. If any
material change other than a change in the financial aspects of a proposed issue of bonds
or obligations, or any change which is inconsistent with the comments of the reviewing
agency is adopted, the amended program shall be resubmitted to the appropriate reviewing
agency for review and comment, and a public hearing shall be held on the amended program
after one publication of notice in a newspaper circulating generally in the city at least deleted text begin 15 deleted text end new text begin
ten new text end days before the hearing. The amended program shall be considered after the public
hearing in the same manner as consideration of the initial program.

Sec. 5.

Minnesota Statutes 2024, section 469.104, is amended to read:

469.104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES.

Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.090 to
469.108 that are deleted text begin limited deleted text end new text begin required new text end by federal tax law as defined in section 474A.02,
subdivision 8 new text begin , to obtain an allocation of volume cap new text end .

Sec. 6.

Minnesota Statutes 2024, section 469.154, subdivision 4, is amended to read:

Subd. 4.

Hearing.

Prior to submitting an application to the department requesting
approval of a project pursuant to subdivision 3, the governing body or a committee of the
governing body of the municipality or redevelopment agency shall conduct a public hearing
on the proposal to undertake and finance the project. Notice of the time and place of hearing,
and stating the general nature of the project and an estimate of the principal amount of bonds
or other obligations to be issued to finance the project, shall be published at least once not
less than deleted text begin 14 deleted text end new text begin ten new text end days nor more than 30 days prior to the date fixed for the hearing, in the
official newspaper and a newspaper of general circulation of the municipality or
redevelopment agency. The notice shall state that a draft copy of the proposed application
to the department, together with all attachments and exhibits, shall be available for public
inspection following the publication of the notice and shall specify the place and times
where and when it will be so available. The governing body of the municipality or the
redevelopment agency shall give all parties who appear at the hearing an opportunity to
express their views with respect to the proposal to undertake and finance the project.
Following the completion of the public hearing, the governing body of the municipality or
redevelopment agency shall adopt a resolution determining whether or not to proceed with
the project and its financing; it may thereafter apply to the department for approval of the
project.

Sec. 7.

Minnesota Statutes 2024, section 469.1813, subdivision 5, is amended to read:

Subd. 5.

Notice and public hearing.

(a) The governing body of the political subdivision
may approve an abatement under sections 469.1812 to 469.1815 only after holding a public
hearing on the abatement.

(b) Notice of the hearing must be published in a newspaper of general circulation in the
political subdivision at least once deleted text begin more than deleted text end new text begin at least new text end ten days but less than 30 days before
the hearing. The newspaper must be one of general interest and readership in the community,
and not one of limited subject matter. The newspaper must be published at least once per
week. The notice must indicate that the governing body will consider granting a property
tax abatement, identify the property or properties for which an abatement is under
consideration, and the total estimated amount of the abatement.

Sec. 8.

Minnesota Statutes 2024, section 474A.091, subdivision 2, is amended to read:

Subd. 2.

Application for residential rental projects.

(a) Issuers may apply for an
allocation for residential rental bonds under this section by submitting to the department an
application on forms provided by the department accompanied by:

(1) a preliminary resolution;

(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code;

(3) an application deposit in the amount of two percent of the requested allocation;

(4) a sworn statement from the applicant identifying the project as a preservation project,
30 percent AMI residential rental project, 50 percent AMI residential rental project, 100
percent LIHTC project, 20 percent LIHTC project, or any other residential rental project;
and

(5) a certification from the applicant or its accountant stating that the requested allocation
does not exceed the aggregate bond limitation.

The issuer must pay the application deposit to the Department of Management and Budget.
An entitlement issuer may not apply for an allocation for residential rental project bonds
under this section unless it has either permanently issued bonds equal to the amount of its
entitlement allocation for the current year plus any amount carried forward from previous
years or returned for reallocation all of its unused entitlement allocation. For purposes of
this subdivision, its entitlement allocation includes an amount obtained under section
474A.04, subdivision 6.

(b) An issuer that receives an allocation under this subdivision must permanently issue
obligations equal to all or a portion of the allocation received on or before new text begin the earlier of:
(1) new text end 180 days of the allocation new text begin ; or (2) the last business day of December new text end . If an issuer that
receives an allocation under this subdivision does not permanently issue obligations equal
to all or a portion of the allocation received within the time period provided in this paragraph
or returns the allocation to the commissioner, the amount of the allocation is canceled and
returned for reallocation through the unified pool.

(c) The Minnesota Housing Finance Agency may apply for and receive an allocation
under this section without submitting an application deposit.

Sec. 9.

Minnesota Statutes 2024, section 474A.091, subdivision 2a, is amended to read:

Subd. 2a.

Application for all other types of qualified bonds.

(a) Issuers may apply
for an allocation for all types of qualified bonds other than residential rental bonds under
this section by submitting to the department an application on forms provided by the
department accompanied by:

(1) a preliminary resolution;

(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code;

(3) the type of qualified bonds to be issued;

(4) an application deposit in the amount of two percent of the requested allocation; and

(5) a public purpose scoring worksheet for manufacturing and enterprise zone
applications.

The issuer must pay the application deposit to the Department of Management and Budget.
An entitlement issuer may not apply for an allocation for public facility bonds or mortgage
bonds under this section unless it has either permanently issued bonds equal to the amount
of its entitlement allocation for the current year plus any amount carried forward from
previous years or returned for reallocation all of its unused entitlement allocation. For
purposes of this subdivision, an entitlement allocation includes an amount obtained under
section 474A.04, subdivision 6.

(b) An issuer that receives an allocation under this subdivision must permanently issue
obligations equal to all or a portion of the allocation received on or before new text begin the earlier of:
(1) new text end 120 days of the allocation new text begin ; or (2) the last business day of December new text end . If an issuer that
receives an allocation under this subdivision does not permanently issue obligations equal
to all or a portion of the allocation received within the time period provided in this paragraph
or returns the allocation to the commissioner, the amount of the allocation is canceled and
returned for reallocation through the unified pool.

(c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision,
the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
under this section prior to the first Monday in October, but may be awarded allocations for
mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota
Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota
Rural Finance Authority may apply for and receive an allocation under this section without
submitting an application deposit.

Sec. 10.

Minnesota Statutes 2024, section 475.521, subdivision 2, is amended to read:

Subd. 2.

Election requirement.

(a) Bonds issued by a municipality to finance capital
improvements under an approved capital improvements plan are not subject to the election
requirements of section 475.58. The bonds must be approved by an affirmative vote of
three-fifths of the members of a five-member governing body. In the case of a governing
body having more or less than five members, the bonds must be approved by a vote of at
least two-thirds of the members of the governing body.

(b) Before the issuance of bonds qualifying under this section, the municipality must
publish a notice of its intention to issue the bonds and the date and time of the hearing to
obtain public comment on the matter. The notice must be published in the official newspaper
of the municipality or in a newspaper of general circulation in the municipality. Additionally,
the notice may be posted on the official website, if any, of the municipality. The notice must
be published at least deleted text begin 14 deleted text end new text begin ten new text end but not more than 28 days before the date of the hearing.

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

Sec. 11.

Minnesota Statutes 2024, section 641.23, is amended to read:

641.23 FUNDS; HOW PROVIDED.

Before any contract is made for the erection of a county jail, sheriff's residence, deleted text begin or both deleted text end new text begin
sheriff's offices, law enforcement center, or courthouse or justice center attached to a county
jail new text end , the county board shall either levy a sufficient tax to provide the necessary funds, or
issue county bonds therefor in accordance with the provisions of chapter 475, provided that
no election is required if the amount of all bonds issued for this purpose and interest on
them which are due and payable in any year does not exceed an amount equal to 0.09671
percent of estimated market value of taxable property within the county, as last determined
before the bonds are issued.

ARTICLE 8

MISCELLANEOUS

Section 1.

Minnesota Statutes 2024, section 3.192, is amended to read:

3.192 REQUIREMENTS FOR NEW OR RENEWED TAX EXPENDITURES.

(a) deleted text begin Any deleted text end new text begin Within 60 days after final enactment of a new text end bill that creates, renews, or continues
a tax expenditure deleted text begin must include a statement of intent deleted text end new text begin , the chairs of the house of representatives
and senate committees with primary jurisdiction over taxes must submit to the Tax
Expenditure Review Commission a statement of objective new text end that clearly provides the purpose
of the tax expenditure and a standard or goal against which its effectiveness may be measured.

(b) For purposes of this section, "tax expenditure" has the meaning given in section
270C.11, subdivision 6 new text begin , and "Tax Expenditure Review Commission" means the commission
established under section 3.8855 new text end .

(c) Any bill that creates a new tax expenditure or continues an expiring tax expenditure
must include an expiration date for the tax expenditure that is no more than eight years from
the day the provision takes effect.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
tax expenditures authorized in this act.
new text end

Sec. 2.

Minnesota Statutes 2024, section 3.8855, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For the purposes of this section deleted text begin , deleted text end new text begin :
new text end

new text begin (1) "commissioner" means the commissioner of revenue; and
new text end

new text begin (2) new text end "significant tax expenditure," "tax," and "tax expenditure" have the meanings given
in section 270C.11, subdivision 6.

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 2024, section 3.8855, subdivision 3, is amended to read:

Subd. 3.

Membership.

(a) The commission consists of:

(1) two senators appointed by the senate majority leader;

(2) two senators appointed by the senate minority leader;

(3) two representatives appointed by the speaker of the house;

(4) two representatives appointed by the minority leader of the house of representatives;
and

(5) the commissioner deleted text begin of revenue deleted text end or the commissioner's designee.

(b) Each appointing authority must make appointments by January 31 of the regular
legislative session in the odd-numbered year.

(c) If the chair of the house or senate committee with primary jurisdiction over taxes is
not an appointed member, the chair is an ex officio, nonvoting member of the commission.

new text begin (d) The commissioner may designate another individual to represent the commissioner
or the commissioner's designee at any meeting of the commission.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2024, section 3.8855, subdivision 4, is amended to read:

Subd. 4.

Duties.

(a) For not more than three years after the commission is established,
the commission must complete an initial review of the state's tax expenditures. The initial
review must identify the deleted text begin purpose deleted text end new text begin objective new text end of each of the state's tax expenditures deleted text begin , deleted text end if none
was deleted text begin identified in the enacting legislation deleted text end new text begin submitted to the commission new text end in accordance with
section 3.192. The commission may also identify metrics for evaluating the effectiveness
of an expenditure.

(b) The commission must review and evaluate Minnesota's tax expenditures on a regular,
rotating basis. The commission must establish a review schedule that ensures each tax
expenditure will be reviewed by the commission at least once every ten years. The
commission may review expenditures affecting similar constituencies or policy areas in the
same year, but the commission must review a subset of the tax expenditures within each
tax type each year. To the extent possible, the commission must review a similar number
of tax expenditures within each tax type each year. The commission may decide not to
review a tax expenditure that is adopted by reference to federal law.

(c) Before deleted text begin December deleted text end new text begin February new text end 1 of the year a tax expenditure is included in a commission
report, the commission must hold a public hearing on the expenditure, including but not
limited to a presentation of the review components in subdivision 5.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2024, section 3.8855, subdivision 5, is amended to read:

Subd. 5.

Components of review.

(a) When reviewing a tax expenditure, the commission
must at a minimum:

(1) provide an estimate of the annual revenue lost as a result of the expenditure;

(2) identify the deleted text begin purpose deleted text end new text begin objective new text end of the tax expenditure if none was deleted text begin identified in the
enacting legislation deleted text end new text begin submitted to the commission new text end in accordance with section 3.192;

(3) estimate the measurable impacts and efficiency of the tax expenditure in
accomplishing the deleted text begin purpose deleted text end new text begin objective new text end of the expenditure;

(4) compare the effectiveness of the tax expenditure and a direct expenditure with the
same deleted text begin purpose deleted text end new text begin objective new text end ;

(5) identify potential modifications to the tax expenditure to increase its efficiency or
effectiveness;

(6) estimate the amount by which the tax rate for the relevant tax could be reduced if
the revenue lost due to the tax expenditure were applied to a rate reduction;

(7) if the tax expenditure is a significant tax expenditure, estimate the incidence of the
tax expenditure and the effect of the expenditure on the incidence of the state's tax system;

(8) consider the cumulative fiscal impacts of other state and federal taxes providing
benefits to taxpayers for similar activities; and

(9) recommend whether the expenditure be continued, repealed, or modified.

(b) The commission may omit a component in paragraph (a) if the commission determines
it is not feasible due to the lack of available data, third-party research, staff resources, or
lack of a majority support for a recommendation.

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 2024, section 3.8855, subdivision 7, is amended to read:

Subd. 7.

Report to legislature.

(a) By deleted text begin December deleted text end new text begin February new text end 15 of each year, the
commission must submit a written report to the legislative committees with jurisdiction
over tax policy. The report must detail the results of the commission's review of tax
expenditures for the year, including the review components detailed in subdivision 5.

(b) Notwithstanding paragraph (a), during the period of initial review under subdivision
4, the report may be limited to the deleted text begin purpose deleted text end new text begin objective new text end statements and metrics for evaluating
the effectiveness of expenditures, as identified by the commission. The report may also
include relevant publicly available data on an expenditure.

(c) The report may include any additional information the commission deems relevant
to the review of an expenditure.

(d) The legislative committees with jurisdiction over tax policy must hold a public
hearing on the report during the regular legislative session in the year following the year in
which the report was submitted.

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 2024, section 3.8855, subdivision 8, is amended to read:

Subd. 8.

Terms; vacancies new text begin ; meetings new text end .

(a) Members of the commission serve a term
beginning upon appointment and ending at the beginning of the regular legislative session
in the next odd-numbered year. The appropriate appointing authority must fill a vacancy
for a seat of a current legislator for the remainder of the unexpired term. Members may be
removed or replaced at the pleasure of the appointing authority.

(b) If a commission member ceases to be a member of the legislative body from which
the member was appointed, the member vacates membership on the commission.

new text begin (c) The commissioner must convene the first meeting of each year required under
subdivision 4, paragraph (c).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2024, section 8.31, subdivision 2c, is amended to read:

Subd. 2c.

Undistributed money to deleted text begin general fund deleted text end new text begin consumer protection restitution
account new text end .

If a court of competent jurisdiction finds that a sum recovered under this section
for the benefit of injured persons cannot reasonably be distributed to the victims, because
the victims cannot readily be located or identified, or because the cost of distributing the
money would outweigh the benefit to the victims, then the court deleted text begin may order that the money
be paid into the general fund. All sums recovered must be deposited into the state treasury
and credited to the general fund deleted text end new text begin or attorney general must deposit the money in the consumer
protection restitution account under section 8.37. Consumer enforcement public compensation
that the attorney general attempts to distribute to an eligible consumer, but that is not
redeemed by the consumer within 120 days, may be redeposited in the account new text end . new text begin For purposes
of this subdivision, "consumer enforcement public compensation" and "eligible consumer"
have the meanings given in section 8.37, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 9.

new text begin [8.37] CONSUMER PROTECTION RESTITUTION ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of account. new text end

new text begin The consumer protection restitution account is
established in the special revenue fund. Money in the account is appropriated annually to
the attorney general for the purposes provided under subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Account" means the consumer protection restitution account established under this
section.
new text end

new text begin (c) "Account administrator" means a person appointed by the attorney general as an
account administrator under this section.
new text end

new text begin (d) "Consumer enforcement action" means litigation in any forum, or settlement of a
matter that could have resulted in litigation, by the attorney general in whole or in part under
(1) the authority of the attorney general provided in section 8.31, or (2) other authority
granted to the attorney general by law to obtain the remedies provided in section 8.31.
new text end

new text begin (e) "Consumer enforcement public compensation" means money awarded or recovered
in a consumer enforcement action to vindicate public interests by providing restitution or
other compensation to persons directly impacted by unlawful acts and practices that are the
subject of the consumer enforcement action.
new text end

new text begin (f) "Court-appointed administrator" means an administrator appointed by a court under
section 8.31, subdivision 3c.
new text end

new text begin (g) "Eligible consumer" means a person who was directly impacted by unlawful acts
and practices that are the subject of a consumer enforcement action and, as a result, is eligible
to receive consumer enforcement public compensation under a final order.
new text end

new text begin (h) "Final order" means a judgment, assurance of discontinuance, consent order,
settlement, stipulation, or other order or settlement that is no longer appealable and for
which no appeals are pending. A final order does not include any judgment, assurance of
discontinuance, consent order, settlement, stipulation, or other order or settlement entered
into before January 1, 2024.
new text end

new text begin (i) "Identified amount of unpaid consumer enforcement public compensation" means a
specific amount of consumer enforcement public compensation that the attorney general,
court-appointed administrator, or fund administrator has determined a specific eligible
consumer is entitled to receive following a final order in a consumer enforcement action
and that has not been distributed to the specific eligible consumer.
new text end

new text begin Subd. 3. new text end

new text begin Money deposited in the account. new text end

new text begin 50 percent of all money recovered by the
attorney general in a consumer enforcement action that is payable to the state and not
designated as consumer enforcement public compensation or for another specific purpose
up to the first $5,000,000 each fiscal year must be deposited into the account. The remaining
50 percent of money recovered by the attorney general in a consumer enforcement action
that is payable to the state and not designated as consumer enforcement public compensation
or for another specific purpose must be deposited into the general fund. For purposes of
this subdivision, the amount of money recovered in a consumer enforcement action that
must be deposited into the fund is determined at the time when the money otherwise would
have been deposited into the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Permissible use of account. new text end

new text begin Money in the account must be used only to
distribute consumer enforcement action public compensation to eligible consumers under
subdivision 5 and for costs to administer the account. The costs to administer the account
may include the cost to retain for any permissible purpose an account administrator or
court-appointed administrator but must not exceed three percent of the total amount of
money available. The attorney general may pay an account administrator from the account
if the account contains excess money.
new text end

new text begin Subd. 5. new text end

new text begin Distributions to eligible consumers. new text end

new text begin (a) Money in the account may be
distributed to any eligible consumer with an identified amount of unpaid consumer
enforcement public compensation. If the amount of money in the account is insufficient to
pay all distributions to eligible consumers with an identified amount of unpaid consumer
enforcement public compensation, the money must be distributed first to consumers eligible
for unpaid consumer enforcement public compensation based on a consumer enforcement
action with a final order of the oldest date.
new text end

new text begin (b) If the attorney general projects that there will be insufficient funding to pay all eligible
consumers from the funds available on an ongoing basis, the attorney general may
recommend to the legislature that the legislature prescribe a formula for prorating or capping
payments to eligible consumers so that more eligible consumers will receive payment from
the fund.
new text end

new text begin Subd. 6. new text end

new text begin Impractical payments and unreasonable effort as to unpaid
compensation. new text end

new text begin (a) The attorney general may deem a distribution to an eligible consumer
with an identified amount of unpaid consumer enforcement public compensation impractical
if:
new text end

new text begin (1) the distribution to the eligible consumer is too small to justify the cost to locate the
eligible consumer or make the payment;
new text end

new text begin (2) the eligible consumer does not redeem a payment within a reasonable time; or
new text end

new text begin (3) other circumstances make distributing the unpaid consumer enforcement compensation
to the eligible consumer unreasonable.
new text end

new text begin (b) The attorney general may deem an attempt to determine an identified amount of
unpaid consumer enforcement public compensation for some or all eligible consumers
relating to a consumer enforcement action is unreasonable when the judgment, assurance
of discontinuance, consent order, settlement, stipulation, or other order or settlement does
not identify specific amounts of consumer enforcement public compensation for specific
consumers if:
new text end

new text begin (1) the number of likely eligible consumers and the amount of likely unpaid consumer
enforcement public compensation is too small to justify the cost to determine an identified
amount of unpaid consumer enforcement public compensation;
new text end

new text begin (2) the information needed to identify an amount of unpaid consumer enforcement public
compensation is unavailable or too costly to obtain; or
new text end

new text begin (3) other circumstances make an attempt to determine an identified amount of unpaid
consumer enforcement public compensation unreasonable.
new text end

new text begin Subd. 7. new text end

new text begin Concluded distributions. new text end

new text begin The attorney general must stop providing distributions
of unpaid consumer enforcement public compensation relating to a consumer enforcement
action when the attorney general determines:
new text end

new text begin (1) all eligible consumers with an identified amount of unpaid consumer enforcement
public compensation for the consumer enforcement action have received a distribution
through the account or the distribution has been deemed impractical under subdivision 6,
paragraph (a); and
new text end

new text begin (2) no additional eligible consumers with unpaid consumer enforcement public
compensation for the consumer enforcement action exist or the attorney general has deemed
identifying unpaid compensation under subdivision 6, paragraph (b), unreasonable.
new text end

new text begin Subd. 8. new text end

new text begin Annual report. new text end

new text begin (a) The attorney general must publish on the attorney general's
website an annual report identifying the following information for the annual period:
new text end

new text begin (1) the consumer enforcement actions resulting in payment of money to the account and
the amount of money paid to the account for each consumer enforcement action;
new text end

new text begin (2) the consumer enforcement actions for which distributions were made to eligible
consumers, the amount of money distributed for each consumer enforcement action, and
the amount of money distributed to each eligible consumer;
new text end

new text begin (3) the consumer enforcement actions for which there are eligible consumers awaiting
distribution from the account and the amount of money for which those eligible consumers
are awaiting distribution for each consumer enforcement action;
new text end

new text begin (4) the consumer enforcement actions for which the attorney general has concluded
account distribution;
new text end

new text begin (5) the consumer enforcement actions in which the attorney general determined that
some or all eligible compensation was impractical to distribute or unreasonable to determine
under subdivision 6; and
new text end

new text begin (6) the cost incurred to administer the account.
new text end

new text begin (b) The attorney general must provide the report to the chairs and ranking minority
members of the legislative committees with jurisdiction over state government, commerce,
and judiciary.
new text end

new text begin Subd. 9. new text end

new text begin Account administrator. new text end

new text begin (a) The attorney general may appoint an administrator
for any of the following purposes:
new text end

new text begin (1) determining identified amounts of unpaid consumer enforcement public compensation
for eligible consumers;
new text end

new text begin (2) collecting money that can be deposited, in whole or in part, to the account;
new text end

new text begin (3) distributing money to eligible consumers; or
new text end

new text begin (4) any other costs to administer the account.
new text end

new text begin (b) The attorney general may appoint more than one account administrator.
new text end

new text begin Subd. 10. new text end

new text begin No private right of action. new text end

new text begin A person does not have a private right of action
with respect to a payment from the account or administration of the account.
new text end

new text begin Subd. 11. new text end

new text begin Collection efforts unaffected. new text end

new text begin The distribution of money from the account
to eligible consumers does not affect the attorney general's authority to collect, satisfy, or
enforce final orders against persons ordered to pay consumer enforcement public
compensation to eligible consumers in the final order. To the extent the attorney general
collects consumer enforcement public compensation pursuant to a final order after money
has been distributed from the account to eligible consumers that are the subject of that final
order, the collected consumer enforcement public compensation must be deposited in the
account in an amount equal to the prior account distribution.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 10.

Minnesota Statutes 2024, section 16A.151, subdivision 2, is amended to read:

Subd. 2.

Exceptions.

(a) If a state official litigates or settles a matter on behalf of specific
injured persons or entities, this section does not prohibit distribution of money to the specific
injured persons or entities on whose behalf the litigation or settlement efforts were initiated.
If money recovered on behalf of injured persons or entities cannot reasonably be distributed
to those persons or entities because they cannot readily be located or identified or because
the cost of distributing the money would outweigh the benefit to the persons or entities, the
money must be paid into the general fund.

(b) Money recovered on behalf of a fund in the state treasury other than the general fund
may be deposited in that fund.

(c) This section does not prohibit a state official from distributing money to a person or
entity other than the state in litigation or potential litigation in which the state is a defendant
or potential defendant.

(d) State agencies may accept funds as directed by a federal court for any restitution or
monetary penalty under United States Code, title 18, section 3663(a)(3), or United States
Code, title 18, section 3663A(a)(3). Funds received must be deposited in a special revenue
account and are appropriated to the commissioner of the agency for the purpose as directed
by the federal court.

deleted text begin (e) Tobacco settlement revenues as defined in section 16A.98, subdivision 1, paragraph
(t), may be deposited as provided in section 16A.98, subdivision 12.
deleted text end

deleted text begin (f) deleted text end new text begin (e) new text end Any money received by the state resulting from a settlement agreement or an
assurance of discontinuance entered into by the attorney general of the state, or a court order
in litigation brought by the attorney general of the state, on behalf of the state or a state
agency, related to alleged violations of consumer fraud laws in the marketing, sale, or
distribution of opioids in this state or other alleged illegal actions that contributed to the
excessive use of opioids, must be deposited in the settlement account established in the
opiate epidemic response fund under section 256.043, subdivision 1. This paragraph does
not apply to attorney fees and costs awarded to the state or the Attorney General's Office,
to contract attorneys hired by the state or Attorney General's Office, or to other state agency
attorneys.

deleted text begin (g) deleted text end new text begin (f) new text end Notwithstanding paragraph deleted text begin (f) deleted text end new text begin (e) new text end , if money is received from a settlement
agreement or an assurance of discontinuance entered into by the attorney general of the
state or a court order in litigation brought by the attorney general of the state on behalf of
the state or a state agency against a consulting firm working for an opioid manufacturer or
opioid wholesale drug distributor, the commissioner shall deposit any money received into
the settlement account established within the opiate epidemic response fund under section
256.042, subdivision 1. Notwithstanding section 256.043, subdivision 3a, paragraph (a),
any amount deposited into the settlement account in accordance with this paragraph shall
be appropriated to the commissioner of human services to award as grants as specified by
the opiate epidemic response advisory council in accordance with section 256.043,
subdivision 3a, paragraph (e).

deleted text begin (h) deleted text end new text begin (g) new text end If the Minnesota Pollution Control Agency, through litigation or settlement of a
matter that could have resulted in litigation, recovers $250,000 or more in a civil penalty
from violations of a permit issued by the agency, then 40 percent of the money recovered
must be distributed to the community health board, as defined in section 145A.02, where
the permitted facility is located. Within 30 days of a final court order in the litigation or the
effective date of the settlement agreement, the commissioner of the Minnesota Pollution
Control Agency must notify the applicable community health board that the litigation has
concluded or a settlement has been reached. The commissioner must collect the money and
transfer it to the applicable community health board. The community health board must
meet directly with the residents potentially affected by the pollution that was the subject of
the litigation or settlement to identify the residents' concerns and incorporate those concerns
into a project that benefits the residents. The project must be implemented by the community
health board and funded as directed in this paragraph. The community health board may
recover the reasonable costs it incurs to administer this paragraph from the funds transferred
to the board under this paragraph. This paragraph directs the transfer and use of money only
and does not create a right of intervention in the litigation or settlement of the enforcement
action for any person or entity. A supplemental environmental project funded as part of a
settlement agreement is not part of a civil penalty and must not be included in calculating
the amount of funds required to be distributed to a community health board under this
paragraph. For the purposes of this paragraph, "supplemental environmental project" means
a project that benefits the environment or public health that a regulated facility agrees to
undertake, though not legally required to do so, as part of a settlement with respect to an
enforcement action taken by the Minnesota Pollution Control Agency to resolve
noncompliance.

deleted text begin (i) deleted text end new text begin (h) new text end A community health board receiving a transfer of funds under paragraph deleted text begin (h) deleted text end new text begin (g) new text end
must, no later than one year after receiving the funds, submit a report to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over environment policy and natural resources that describes:

(1) the process of community engagement employed to solicit community input regarding
the use of the funds;

(2) the purposes and activities for which the funds were used; and

(3) an account of expenditures.

deleted text begin (j) deleted text end new text begin (i) new text end The commissioner of the Minnesota Pollution Control Agency must submit a
report in September each even-numbered year, beginning in 2024, to the chairs and ranking
minority members of the senate and house of representatives committees with primary
jurisdiction over environmental policy and natural resources that includes:

(1) the amount transferred under paragraph deleted text begin (h) deleted text end new text begin (g) new text end to each community health board
during the previous two years; and

(2) any agency services provided to the community health board or community residents
during the duration of the project funded by the transfer, and the cost of those agency
services, for consideration by the legislature for future appropriations that address
reimbursement of the amount of the transfers and the cost of services provided by the agency.

deleted text begin (k) deleted text end new text begin (j) new text end Any money received by the state resulting from a settlement agreement or an
assurance of discontinuance entered into by the attorney general of the state, or a court order
in litigation brought by the attorney general of the state on behalf of the state or a state
agency related to alleged violations of consumer fraud laws in the marketing, sale, or
distribution of electronic nicotine delivery systems in this state or other alleged illegal
actions that contributed to the exacerbation of youth nicotine use, must be deposited in the
tobacco use prevention account under section 144.398. This paragraph does not apply to:
(1) attorney fees and costs awarded or paid to the state or the Attorney General's Office; (2)
contract attorneys hired by the state or Attorney General's Office; or (3) other state agency
attorneys. The commissioner of management and budget must transfer to the tobacco use
prevention account, any money subject to this paragraph that is received by the state before
May 24, 2023.

new text begin (k) This section does not apply to money deposited in the consumer protection restitution
account under section 8.37.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 11.

Minnesota Statutes 2024, section 37.31, subdivision 1, is amended to read:

Subdivision 1.

Bonding authority.

The society may issue negotiable bonds in a principal
amount that the society determines necessary to provide sufficient money for achieving its
purposes, including the payment of interest on bonds of the society, the establishment of
reserves to secure its bonds, the payment of fees to a third party providing credit
enhancement, and the payment of all other expenditures of the society incident to and
necessary or convenient to carry out its corporate purposes and powers. Bonds of the society
may be issued as bonds or notes or in any other form authorized by law. The principal
amount of bonds issued and outstanding under this section at any time may not exceed
deleted text begin $30,000,000 deleted text end new text begin $50,000,000 new text end , excluding bonds for which refunding bonds or crossover refunding
bonds have been issued.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 12.

Minnesota Statutes 2024, section 270C.11, subdivision 4, is amended to read:

Subd. 4.

Contents.

(a) The report shall detail for each tax expenditure item:

(1) the amount of tax revenue forgone;

(2) a citation of the statutory or other legal authority for the expenditure;

(3) the year in which it was enacted or the tax year in which it became effective;

(4) the deleted text begin purpose deleted text end new text begin objective new text end of the expenditure, as deleted text begin identified in the enacting legislation deleted text end
new text begin submitted to the commission new text end in accordance with section 3.192 or new text begin identified new text end by the Tax
Expenditure Review Commission;

(5) the incidence of the expenditure, if it is a significant sales or income tax expenditure;
and

(6) the revenue-neutral amount by which the relevant tax rate could be reduced if the
expenditure were repealed.

(b) The report may contain additional information which the commissioner considers
relevant to the legislature's consideration and review of individual tax expenditure items.
This may include but is not limited to analysis of whether the expenditure is achieving that
objective and the effect of the expenditure on the administration of the tax system.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2024, section 289A.60, subdivision 12, is amended to read:

Subd. 12.

Penalties relating to property tax refunds new text begin and certificates of rent paid new text end .

(a)
If it is determined that a property tax refund claim is excessive and was negligently prepared,
a claimant is liable for a penalty of ten percent of the disallowed claim. If the claim has
been paid, the amount disallowed must be recovered by assessment and collection.

(b) An owner who deleted text begin without reasonable cause deleted text end fails to give a certificate of rent paid to a
renter, as required by sections 290.0693, subdivision 4, new text begin paragraph (a), new text end and 290A.19,
paragraph (a), is liable to the commissioner for a penalty of deleted text begin $100 deleted text end new text begin $50 new text end for each failure. new text begin The
commissioner may abate the penalty using the abatement authority in section 270C.34.
new text end

new text begin (c) An owner who fails to file a certificate of rent paid with the commissioner, as required
by sections 290.0693, subdivision 4, paragraph (b), and 290A.19, paragraph (b), is liable
to the commissioner for a penalty of $50 for each failure. The commissioner may abate the
penalty using the abatement authority in section 270C.34.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end If the owner or managing agent knowingly gives rent certificates that report total
rent constituting property taxes in excess of the amount of actual rent constituting property
taxes paid on the rented part of a property, the owner or managing agent is liable for a
penalty equal to the greater of (1) $100 or (2) 50 percent of the excess that is reported. An
overstatement of rent constituting property taxes is presumed to be knowingly made if it
exceeds by ten percent or more the actual rent constituting property taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rent paid after December 31, 2025.
new text end

Sec. 14.

Minnesota Statutes 2024, section 290.0693, subdivision 4, is amended to read:

Subd. 4.

Owner or managing agent to furnish rent certificate.

(a) The owner or
managing agent of any property for which rent is paid for occupancy as a homestead must
furnish a certificate of rent paid to a person who is a renter on December 31, in the form
prescribed by the commissioner. If the renter moves before December 31, the owner or
managing agent may give the certificate to the renter at the time of moving, or mail the
certificate to the forwarding address if an address has been provided by the renter. The
certificate must be made available to the renter before February 1 of the year following the
year in which the rent was paid. The owner or managing agent must retain a duplicate of
each certificate or an equivalent record showing the same information for a period of four
years. The duplicate or other record must be made available to the commissioner upon
request.

(b) The deleted text begin commissioner may require the deleted text end owner or managing agent deleted text begin , through a simple
process, to deleted text end new text begin must new text end furnish to the commissioner on or before January 31 a copy of each
certificate of rent paid furnished to a renter for rent paid in the prior year. The commissioner
shall prescribe the content, format, and manner of the form pursuant to section 270C.30.
The commissioner may require the Social Security number, individual taxpayer identification
number, federal employer identification number, or Minnesota taxpayer identification
number of the owner or managing agent who is required to furnish a certificate of rent paid
under this paragraph. Before implementation, the commissioner, after consulting with
representatives of owners or managing agents, shall develop an implementation and
administration plan for the requirements of this paragraph that attempts to minimize financial
burdens, administration and compliance costs, and takes into consideration existing systems
of owners and managing agents.

new text begin (c) An owner who fails to furnish the certificate of rent paid to the renter or to the
commissioner as required under this section is subject to the penalty imposed under section
289A.60, subdivision 12.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rent paid after December 31, 2025.
new text end

Sec. 15.

Minnesota Statutes 2024, section 290A.19, is amended to read:

290A.19 PARK OWNER TO FURNISH RENT CERTIFICATE.

(a) The park owner of a property for which rent is paid for occupancy as a homestead
must furnish a certificate of rent paid to a person who is a renter on December 31, in the
form prescribed by the commissioner. If the renter moves before December 31, the park
owner may give the certificate to the renter at the time of moving, or mail the certificate to
the forwarding address if an address has been provided by the renter. The certificate must
be made available to the renter before February 1 of the year following the year in which
the rent was paid. The park owner must retain a duplicate of each certificate or an equivalent
record showing the same information for a period of three years. The duplicate or other
record must be made available to the commissioner upon request.

(b) The deleted text begin commissioner may require the deleted text end park owner deleted text begin , through a simple process, to deleted text end new text begin must new text end
furnish to the commissioner on or before March 1 a copy of each certificate of rent paid
furnished to a renter for rent paid in the prior year. The commissioner shall prescribe the
content, format, and manner of the form pursuant to section 270C.30. The commissioner
may require the Social Security number, individual taxpayer identification number, federal
employer identification number, or Minnesota taxpayer identification number of the park
owner who is required to furnish a certificate of rent paid under this paragraph. Prior to
implementation, the commissioner, after consulting with representatives of park owners,
shall develop an implementation and administration plan for the requirements of this
paragraph that attempts to minimize financial burdens, administration and compliance costs,
and takes into consideration existing systems of park owners.

(c) For the purposes of this section, "park owner" means a park owner as defined under
section 327C.015, subdivision 9, and "property" includes a lot as defined under section
327C.015, subdivision 6.

new text begin (d) A park owner who fails to furnish the certificate of rent paid to the renter or to the
commissioner, as required under this section, is subject to the penalty imposed under section
289A.60, subdivision 12.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rent paid after December 31, 2025.
new text end

Sec. 16.

Minnesota Statutes 2024, section 295.53, subdivision 4a, is amended to read:

Subd. 4a.

Credit for research.

(a) In addition to the exemptions allowed under
subdivision 1, a hospital or health care provider may claim an annual credit against the total
amount of tax, if any, the hospital or health care provider owes for that calendar year under
sections 295.50 to 295.57. The credit shall equal deleted text begin 2.5 deleted text end new text begin 0.5 new text end percent of revenues for patient
services used to fund expenditures for qualifying research conducted by an allowable research
program. The amount of the credit shall not exceed the tax liability of the hospital or health
care provider under sections 295.50 to 295.57.

(b) For purposes of this subdivision, the following requirements apply:

(1) expenditures must be for program costs of qualifying research conducted by an
allowable research program;

(2) an allowable research program must be a formal program of medical and health care
research conducted by an entity which is exempt under section 501(c)(3) of the Internal
Revenue Code as defined in section 289A.02, subdivision 7, or is owned and operated under
authority of a governmental unit;

(3) qualifying research must:

(A) be approved in writing by the governing body of the hospital or health care provider
which is taking the deduction under this subdivision;

(B) have as its purpose the development of new knowledge in basic or applied science
relating to the diagnosis and treatment of conditions affecting the human body;

(C) be subject to review by individuals with expertise in the subject matter of the proposed
study but who have no financial interest in the proposed study and are not involved in the
conduct of the proposed study; and

(D) be subject to review and supervision by an institutional review board operating in
conformity with federal regulations if the research involves human subjects or an institutional
animal care and use committee operating in conformity with federal regulations if the
research involves animal subjects. Research expenses are not exempt if the study is a routine
evaluation of health care methods or products used in a particular setting conducted for the
purpose of making a management decision. Costs of clinical research activities paid directly
for the benefit of an individual patient are excluded from this exemption. Basic research in
fields including biochemistry, molecular biology, and physiology are also included if such
programs are subject to a peer review process.

(c) No credit shall be allowed under this subdivision for any revenue received by the
hospital or health care provider in the form of a grant, gift, or otherwise, whether from a
government or nongovernment source, on which the tax liability under section 295.52 is
not imposed.

(d) The taxpayer shall apply for the credit under this section on the annual return under
section 295.55, subdivision 5.

deleted text begin (e) Beginning September 1, 2001, if the actual or estimated amount paid under this
section for the calendar year exceeds $2,500,000, the commissioner of management and
budget shall determine the rate of the research credit for the following calendar year to the
nearest one-half percent so that refunds paid under this section will most closely equal
$2,500,000. The commissioner of management and budget shall publish in the State Register
by October 1 of each year the rate of the credit for the following calendar year. A
determination under this section is not subject to the rulemaking provisions of chapter 14.
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. 17.

Minnesota Statutes 2024, section 295.54, subdivision 2, is amended to read:

Subd. 2.

Pharmacy refund.

new text begin (a) new text end A pharmacy may claim deleted text begin an annual deleted text end new text begin a quarterly new text end refund
deleted text begin against the total amount of tax, if any, the pharmacy owes during that calendar year under
section 295.52, subdivision 4. The refund shall deleted text end equal new text begin to new text end the amount paid by the pharmacy
to a wholesale drug distributor subject to tax under section 295.52, subdivision 3, for legend
drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax percentage
specified in section 295.52, subdivision 3. deleted text begin If the amount of the refund exceeds the tax
liability of the pharmacy under section 295.52, subdivision 4, the commissioner shall provide
the pharmacy with a refund equal to the excess amount.
deleted text end

new text begin (b) new text end Each qualifying pharmacy must apply for the refund on the deleted text begin annual deleted text end new text begin quarterly new text end return
as prescribed by the commissioner, deleted text begin on or before March 15 of the year following the calendar
year the legend drugs were delivered outside Minnesota. deleted text end new text begin as required under the following
schedule:
new text end

new text begin (1) for legend drugs delivered by the pharmacy outside of Minnesota between January
1 and March 31, a pharmacy may file its refund request on or after July 1 of the calendar
year in which the legend drugs are delivered by the pharmacy outside of Minnesota;
new text end

new text begin (2) for legend drugs delivered by the pharmacy outside of Minnesota between April 1
and June 30, a pharmacy may file its refund request on or after July 1 of the calendar year
in which the legend drugs are delivered by the pharmacy outside of Minnesota;
new text end

new text begin (3) for legend drugs delivered by the pharmacy outside of Minnesota between July 1
and September 30, a pharmacy may file its refund request on or after October 1 of the
calendar year in which the legend drugs are delivered by the pharmacy outside of Minnesota;
and
new text end

new text begin (4) for legend drugs delivered by the pharmacy outside of Minnesota between October
1 and December 31, a pharmacy may file its refund request on or after January 1 of the
calendar year immediately following the calendar year in which the legend drugs are
delivered by the pharmacy outside of Minnesota.
new text end

deleted text begin The refund shall not be deleted text end new text begin (c) No refund is new text end allowed if the deleted text begin initial deleted text end claim for refund is filed
more than one year after the deleted text begin original due date of the return deleted text end new text begin end of the quarter in which the
legend drugs were delivered by the pharmacy outside of Minnesota new text end . Interest on refunds paid
under this subdivision deleted text begin will begin deleted text end new text begin begins new text end to accrue 60 days after the date a claim for refund
is filed. deleted text begin For purposes of this subdivision, the date a claim is filed is the due date of the return
if a return is due or the date of the actual claim for refund, whichever is later.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for legend drugs delivered outside of
Minnesota after December 31, 2025.
new text end

Sec. 18.

Minnesota Statutes 2024, section 295.81, subdivision 10, is amended to read:

Subd. 10.

Deposit of revenues; account established.

deleted text begin (a) deleted text end The commissioner must deposit
the revenues, including penalties and interest, derived from the tax imposed by this section
deleted text begin as follows:
deleted text end

deleted text begin (1) 80 percent to deleted text end new text begin in new text end the general fund deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) 20 percent to the local government cannabis aid account in the special revenue fund.
deleted text end

deleted text begin (b) The local government cannabis aid account is established in the special revenue fund.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin The amendment to paragraph (a) is effective for revenues received
after June 30, 2025. The amendment to paragraph (b) is effective January 2, 2026.
new text end

Sec. 19.

Minnesota Statutes 2024, section 609.902, subdivision 4, is amended to read:

Subd. 4.

Criminal act.

"Criminal act" means conduct constituting, or a conspiracy or
attempt to commit, a felony violation of chapter 152, or a felony violation of section deleted text begin 297D.09; deleted text end
299F.79; 299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222;
609.223; 609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343;
609.344; 609.345; 609.42; 609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52,
subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is
a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a),
clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528,
if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582,
subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86;
609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the
offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act"
also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation
of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an
insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service
plan corporation regulated under chapter 62C, a health maintenance organization regulated
under chapter 62D, or a fraternal benefit society regulated under chapter 64B.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025.
new text end

Sec. 20. new text begin CANCELLATION OF AMOUNTS IN LOCAL GOVERNMENT CANNABIS
AID ACCOUNT.
new text end

new text begin On January 2, 2026, any balance within the local government cannabis aid account in
the special revenue fund is canceled to the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 21. new text begin APPROPRIATION; EXTENSION OF AVAILABILITY.
new text end

new text begin Notwithstanding Minnesota Statutes, section 16A.28, the appropriation in Laws 2023,
chapter 64, article 15, section 30, is available until June 30, 2027.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2024, sections 297D.01; 297D.02; 297D.03; 297D.04; 297D.05;
297D.06; 297D.07; 297D.08; 297D.085; 297D.09; 297D.10; 297D.11; 297D.12; and
297D.13, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2024, section 477A.32, new text end new text begin is repealed.
new text end

new text begin (c) new text end new text begin Minnesota Statutes 2024, section 13.4967, subdivision 5, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective August 1, 2025. Paragraph (b) is effective
for aids payable in 2026 and thereafter. Paragraph (c) is effective August 1, 2025.
new text end

ARTICLE 9

DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND CORPORATE
FRANCHISE TAXES

Section 1.

Minnesota Statutes 2024, section 116U.27, subdivision 2, is amended to read:

Subd. 2.

Credit allowed.

A taxpayer is eligible for a credit up to 25 percent of eligible
production costs paid in deleted text begin a taxable year deleted text end new text begin any consecutive 12-month period as described in
subdivision 1, paragraph (h) new text end . A taxpayer may only claim a credit if the taxpayer was issued
a credit certificate under subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end

Sec. 2.

Minnesota Statutes 2024, section 290.0132, subdivision 26, as amended by Laws
2025, chapter 20, section 230, is amended to read:

Subd. 26.

Social Security benefits.

(a) A taxpayer is allowed a subtraction equal to the
greater of the simplified subtraction allowed under paragraph (b) or the alternate subtraction
determined under paragraph (e).

(b) A taxpayer's simplified subtraction equals the amount of taxable social security
benefits, as reduced under paragraphs (c) and (d).

(c) For a taxpayer other than a married taxpayer filing a separate return with adjusted
gross income above the phaseout threshold, the simplified subtraction is reduced by ten
percent for each $4,000 of adjusted gross income, or fraction thereof, in excess of the
phaseout threshold. The phaseout threshold equals:

(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;

(2) $78,000 for a single or head of household taxpayer; and

(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
filing a joint return.

(d) For a married taxpayer filing a separate return, the simplified subtraction is reduced
by ten percent for each $2,000 of adjusted gross income, or fraction thereof, in excess of
the phaseout threshold.

(e) A taxpayer's alternate subtraction equals the lesser of taxable Social Security benefits
or a maximum subtraction subject to the limits under paragraphs (f), (g), and (h).

(f) For married taxpayers filing a joint return and surviving spouses, the maximum
subtraction under paragraph (e) equals $5,840. The maximum subtraction is reduced by 20
percent of provisional income over $88,630. In no case is the subtraction less than zero.

(g) For single or head-of-household taxpayers, the maximum subtraction under paragraph
(e) equals $4,560. The maximum subtraction is reduced by 20 percent of provisional income
over $69,250. In no case is the subtraction less than zero.

(h) For married taxpayers filing separate returns, the maximum subtraction under
paragraph (e) equals one-half the maximum subtraction for joint returns under paragraph
(f). The maximum subtraction is reduced by 20 percent of provisional income over one-half
the threshold amount specified in paragraph (d). In no case is the subtraction less than zero.

(i) For purposes of this subdivision, "provisional income" means modified adjusted gross
income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of the
taxable Social Security benefits received during the taxable year, and "Social Security
benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code.

(j) The commissioner shall adjust the phaseout threshold amounts in paragraph (c),
clauses (1) and (2), as provided in section 270C.22. The statutory year is taxable year 2023.
The maximum subtraction and threshold amounts as adjusted must be rounded to the nearest
$10 amount. If the amount ends in $5, the amount is rounded up to the nearest $10 amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end

Sec. 3.

Minnesota Statutes 2024, section 290.0132, subdivision 34, is amended to read:

Subd. 34.

Qualified retirement benefits.

(a) The amount of qualified public pension
income is a subtraction. The subtraction in this section is limited to:

(1) $25,000 for a married taxpayer filing a joint return or surviving spouse; or

(2) $12,500 for all other filers.

(b) For a taxpayer with adjusted gross income above the phaseout threshold, the
subtraction is reduced by ten percent for each $2,000 of adjusted gross income, or fraction
thereof, in excess of the threshold. The phaseout threshold equals:

(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;

(2) $78,000 for a single or head of household taxpayer; or

(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
filing a joint return.

(c) For the purposes of this section, "qualified public pension income" means any amount
received:

(1) by a former basic member or the survivor of a former basic member, as an annuity
or survivor benefit, from a pension plan governed by chapter 353, 353E, 354, or 354A,
provided that the annuity or benefit is based on service for which the member or survivor
deleted text begin is not also receiving deleted text end new text begin did not earn new text end Social Security benefits;

(2) as an annuity or survivor benefit from the legislators plan under chapter 3A, the State
Patrol retirement plan under chapter 352B, or the public employees police and fire plan
under sections 353.63 to 353.666, provided that the annuity or benefit is based on service
for which the member or survivor deleted text begin is not also receiving deleted text end new text begin did not earn new text end Social Security benefits;

(3) from any retirement system administered by the federal government that is based on
service for which the recipient or the recipient's survivor deleted text begin is not also receiving deleted text end new text begin did not earn new text end
Social Security benefits; or

(4) from a public retirement system of or created by another state or any of its political
subdivisions, or the District of Columbia, if the income tax laws of the other state or district
permit a similar deduction or exemption or a reciprocal deduction or exemption of a
retirement or pension benefit received from a public retirement system of or created by this
state or any political subdivision of this state.

(d) The commissioner must annually adjust the subtraction limits in paragraph (a) and
the phaseout thresholds in paragraph (b), as provided in section 270C.22. The statutory year
is taxable year 2023.

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 2024, section 290.0134, subdivision 20, is amended to read:

Subd. 20.

Delayed business interest.

(a) For each taxable year an addition is required
under section deleted text begin 290.0131, subdivision 19 deleted text end new text begin 290.0133, subdivision 15 new text end , the amount of the addition,
less the sum of all amounts subtracted under this paragraph in all prior taxable years, that
does not exceed the limitation on business interest in section 163(j) of the Internal Revenue
Code of 1986, as amended through December 15, 2022, notwithstanding the special rule in
section 163(j)(10) of the Internal Revenue Code, is a subtraction. Any excess is a delayed
business interest carryforward, the entire amount of which must be carried to the earliest
taxable year. No subtraction is allowed under this paragraph for taxable years beginning
after December 31, 2022.

(b) For each of the five taxable years beginning after December 31, 2022, there is allowed
a subtraction equal to one-fifth of the sum of all carryforward amounts that remain after the
expiration of paragraph (a).

(c) Entities that are part of a combined reporting group under the unitary rules of section
290.17, subdivision 4, must compute deductions and additions as required under section
290.34, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2019.
new text end

Sec. 5.

Minnesota Statutes 2024, section 290.0693, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Dependent" means any individual who is considered a dependent under sections
151 and 152 of the Internal Revenue Code new text begin and was claimed by the taxpayer as a dependent new text end .

(c) "Disability" has the meaning given in section 290A.03, subdivision 10.

(d) "Exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b).

(e) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a
homestead, exclusive of charges for any medical services furnished by the landlord as a
part of the rental agreement, whether expressly set out in the rental agreement or not. The
gross rent of a resident of a nursing home or intermediate care facility is $600 per month.
The gross rent of a resident of an adult foster care home is $930 per month. The commissioner
shall annually adjust the amounts in this paragraph as provided in section 270C.22. The
statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's
length and the commissioner determines that the gross rent charged was excessive, the
commissioner may adjust the gross rent to a reasonable amount for purposes of this section.

(f) "Homestead" has the meaning given in section 290A.03, subdivision 6.

(g) "Household" has the meaning given in section 290A.03, subdivision 4.

(h) "Household income" means all income received by all persons of a household in a
taxable year while members of the household, other than income of a dependent.

(i) "Income" means adjusted gross income, minus:

(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;

(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;

(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;

(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;

(5) for the taxpayer's fifth dependent, the exemption amount; and

(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or
before the close of the taxable year, the exemption amount.

(j) "Rent constituting property taxes" means 17 percent of the gross rent actually paid
in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any taxable
year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the
taxable year, and which rent constitutes the basis, in the succeeding taxable year of a claim
for a credit under this section by the claimant. If an individual occupies a homestead with
another person or persons not related to the individual as the individual's spouse or as
dependents, and the other person or persons are residing at the homestead under a rental or
lease agreement with the individual, the amount of rent constituting property tax for the
individual equals that portion not covered by the rental agreement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 6.

Minnesota Statutes 2024, section 290.0693, subdivision 6, is amended to read:

Subd. 6.

Residents of nursing homes, intermediate care facilities, long-term care
facilities, or facilities accepting housing support payments.

(a) A taxpayer must not claim
a credit under this section if the taxpayer is a resident of a nursing home, intermediate care
facility, long-term residential facility, or a facility that accepts housing support payments
whose rent constituting property taxes is paid pursuant to the Supplemental Security Income
program under title XVI of the Social Security Act, the Minnesota supplemental aid program
under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
of the Social Security Act, or the housing support program under chapter 256I.

(b) If only a portion of the rent constituting property taxes is paid by these programs,
the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction,
the numerator of which is adjusted gross income, deleted text begin reduced by the total amount of income
from the above sources other than vendor payments under the medical assistance program deleted text end
and the denominator of which is adjusted gross income, plus vendor payments under the
medical assistance program, to determine the allowable credit.

(c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing
home, intermediate care facility, long-term residential facility, or facility for which the rent
was paid for the claimant by the housing support program for only a portion of the taxable
year covered by the claim, the taxpayer may compute rent constituting property taxes by
disregarding the rent constituting property taxes from the nursing home or facility and may
use only that amount of rent constituting property taxes or property taxes payable relating
to that portion of the year when the taxpayer was not in the facility. The taxpayer's household
income is the income for the entire taxable year covered by the claim.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 7.

Minnesota Statutes 2024, section 290.0693, subdivision 8, is amended to read:

Subd. 8.

One claimant per household.

Only one taxpayer per household per year is
entitled to claim a credit under this section. new text begin In the case of a married couple filing a joint
return, the couple may claim a credit under this section based on the total amount of both
spouses' gross rent. new text end In the case of a married taxpayer filing a separate return, only one spouse
may claim the credit under this section. The credit amount for the spouse that claims the
credit must be calculated based on household income new text begin and both spouses' share of the gross
rent new text end and not solely on the income of the spouse.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 8.

Minnesota Statutes 2024, section 290.0695, subdivision 2, is amended to read:

Subd. 2.

Credit allowed; limitation; carryover.

(a) An eligible taxpayer is allowed a
credit against tax due under this chapter equal to 50 percent of deleted text begin eligible expenses, not to
exceed $3,000 per mile, multiplied by the number of miles of railroad track owned or leased
within the state by the eligible taxpayer for which the taxpayer made deleted text end new text begin the new text end qualified railroad
reconstruction or replacement expenditures deleted text begin as of the close of the taxable year for which the
credit is claimed deleted text end new text begin made by an eligible taxpayer within this state during the taxable year for
which the credit is claimed new text end .

new text begin (b) The credit allowed under paragraph (a) for any taxable year must not exceed the
product of:
new text end

new text begin (1) $3,000, multiplied by;
new text end

new text begin (2) the number of miles of railroad track owned or leased by the eligible taxpayer within
this state as of the close of the taxable year for which the taxpayer made qualified railroad
reconstruction or replacement expenditures for which the credit is claimed.
new text end

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

deleted text begin (c) deleted text end new text begin (d) new text end An eligible taxpayer claiming a credit under this section may not also claim the
credit under section 297I.20, subdivision 6, for the same qualified railroad reconstruction
or replacement expenditures.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end

Sec. 9.

Laws 2023, chapter 1, section 22, is amended to read:

Sec. 22. TEMPORARY ADDITIONS AND SUBTRACTIONS; INDIVIDUALS,
ESTATES, AND TRUSTS.

(a) For the purposes of this section:

(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132,
subdivision 1, and the rules in that subdivision apply to this section;

(2) "addition" has the meaning given in Minnesota Statutes, section 290.0131, subdivision
1, and the rules in that subdivision apply to this section; and

(3) the definitions in Minnesota Statutes, section 290.01, apply to this section.

(b) The following amounts are subtractions:

(1) the amount of wages used for the calculation of the employee retention credit for
employers affected by qualified disasters, to the extent not deducted from income, under
Public Law 116-94, division Q, section 203, or Public Law 116-260, division EE, section
303;

(2) the amount of wages used for the calculation of the payroll credit for required paid
sick leave, to the extent not deducted from income, under Public Law 116-127, section
7001, as amended by section 9641 of Public Law 117-2;

(3) the amount of wages or expenses used for the calculation of the payroll credit for
required paid family leave, to the extent not deducted from income, under Public Law
116-127, section 7003, as amended by section 9641 of Public Law 117-2;

(4) the amount of wages used for the calculation of the employee retention credit for
employers subject to closure due to COVID-19, to the extent not deducted from income,
under Public Law 116-136, section 2301, as amended by Public Law 116-260, division EE,
section 207, and Public Law 117-2, section 9651; and

(5) the amount required to be added to gross income to claim the credit in section 6432
of the Internal Revenue Code.

(c) The following amounts are additions:

(1) the amount subtracted for qualified tuition expenses under section 222 of the Internal
Revenue Code, as amended by Public Law 116-94, division Q, section 104;

(2) the amount of above the line charitable contributions deducted under section 2204
of Public Law 116-136;

(3) the amount of meal expenses in excess of the 50 percent limitation under section
274(n)(1) of the Internal Revenue Code allowed under subsection (n), paragraph (2),
subparagraph (D), of that section; and

(4) the amount of charitable contributions deducted from federal taxable income by a
trust for taxable year 2020 under Public Law 116-136, section 2205(a).

(d) The commissioner of revenue must apply the subtractions in paragraph (b) and the
additions in paragraph (c), when calculating the following:

(1) the percentage under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
(e);

(2) a taxpayer's alternative minimum taxable income under Minnesota Statutes, section
290.091; and

(3) "income" deleted text begin as defined in Minnesota Statutes, section 289A.08, subdivision 7, paragraph
(j), deleted text end for the purposes of determining the tax for composite filers and the pass-through entity
tax new text begin , means the partner's share of federal adjusted gross income from the partnership modified
by the additions provided in Minnesota Statutes, section 290.0131, subdivisions 8 to 10,
16, 17, and 19, and the subtractions provided in (i) Minnesota Statutes, section 290.0132,
subdivisions 9, 27, and 28, to the extent the amount is assignable or allocable to Minnesota
under Minnesota Statutes, section 290.17; and (ii) Minnesota Statutes, section 290.0132,
subdivision 14. The subtraction allowed under Minnesota Statutes, section 290.0132,
subdivision 9, is only allowed on the composite tax computation to the extent the electing
partner would have been allowed the subtraction new text end .

(e) For the purpose of calculating property tax refunds under Minnesota Statutes, chapter
290A, any amounts allowed as a subtraction in paragraph (b) are excluded from "income,"
as defined in Minnesota Statutes, section 290A.03, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively at the same time the changes
in Laws 2023, chapter 1, section 22, were effective for federal purposes.
new text end

ARTICLE 10

DEPARTMENT OF REVENUE; SALES AND USE TAXES

Section 1.

Minnesota Statutes 2024, section 297A.71, subdivision 54, is amended to read:

Subd. 54.

Sustainable aviation fuel facilities.

(a) Materials and supplies used or
consumed in and equipment incorporated into the construction, reconstruction, or
improvement of a facility located in Minnesota that produces or blends sustainable aviation
fuel, as defined in section 41A.30, subdivision 1, deleted text begin is deleted text end new text begin if materials, supplies, and equipment
are purchased after June 30, 2027, and before July 1, 2034, are new text end exempt.

(b) The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied and then refunded in the manner as provided for projects under section
297A.75, subdivision 1 deleted text begin , clause (1) deleted text end .

(c) For a project, a portion of which is not used to produce or blend sustainable aviation
fuel, the amount of purchases that are exempt under this subdivision must be determined
by multiplying the total purchases, as specified in paragraph (a), by the ratio of:

(1) the capacity to generate sustainable aviation fuel either through production or
blending; and

(2) the capacity to generate all fuels.

(d) This subdivision expires July 1, 2034. The expiration does not affect refunds due for
sales and purchases made prior to July 1, 2034.

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 2024, section 297A.75, subdivision 1, as amended by Laws
2025, chapter 20, section 233, is amended to read:

Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the following
exempt items must be imposed and collected as if the sale were taxable and the rate under
section 297A.62, subdivision 1, applied. The exempt items include:

(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14;

(3) building materials for correctional facilities under section 297A.71, subdivision 3;

(4) building materials used in a residence for veterans with a disability exempt under
section 297A.71, subdivision 11;

(5) elevators and building materials exempt under section 297A.71, subdivision 12;

(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;

(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;

(8) equipment and materials used for the generation, transmission, and distribution of
electrical energy and an aerial camera package exempt under section 297A.68, subdivision
37;

(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);

(10) materials, supplies, and equipment for construction or improvement of projects and
facilities under section 297A.71, subdivision 40;

(11) enterprise information technology equipment and computer software for use in a
qualified data center exempt under section 297A.68, subdivision 42;

(12) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44, paragraphs (a) and (b);

(13) items purchased for use in providing critical access dental services exempt under
section 297A.70, subdivision 7, paragraph (c);

(14) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44;

(15) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;

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

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

new text begin (18) building materials, equipment, and supplies for constructing, remodeling, or
improving a sustainable aviation fuel facility exempt under section 297A.71, subdivision
54.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2024, section 297A.75, subdivision 2, is amended to read:

Subd. 2.

Refund; eligible persons.

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

(1) for subdivision 1, clauses (1), (2), and (13), the applicant must be the purchaser;

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

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

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

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

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

(7) for subdivision 1, clauses (8), (11), and (14), the owner of the qualifying business;

(8) for subdivision 1, clauses (9), (10), (12), (16), and (17), the applicant must be the
governmental entity that owns or contracts for the project or facility; deleted text begin and
deleted text end

(9) for subdivision 1, clause (15), the applicant must be the owner or developer of the
building or project deleted text begin . deleted text end new text begin ; and
new text end

new text begin (10) for subdivision 1, clause (18), the applicant must be the owner or developer of the
sustainable aviation fuel facility.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2024, section 297A.75, subdivision 3, is amended to read:

Subd. 3.

Application.

(a) The application must include sufficient information to permit
the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clauses (3) to (12) or (14) to deleted text begin (17) deleted text end new text begin (18) new text end , the contractor,
subcontractor, or builder must furnish to the refund applicant a statement including the cost
of the exempt items and the taxes paid on the items unless otherwise specifically provided
by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
this section.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2024, 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) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.

(e) 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.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
credit to the highway user tax distribution fund an amount equal to the estimated revenues
derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
based on the amount of revenue deposited under paragraph (d).

(g) new text begin Each month new text end the commissioner must deposit deleted text begin the deleted text end new text begin an amount equal to the estimated new text end
revenues derived from the taxes imposed under section 297A.62, subdivision 1, on the sale
and purchase of motor vehicle repair and replacement parts in the state treasury and credit:

(1) 43.5 percent in each fiscal year to the highway user tax distribution fund;

(2) a percentage to the transportation advancement account under section 174.49 as
follows:

(i) 3.5 percent in fiscal year 2024;

(ii) 4.5 percent in fiscal year 2025;

(iii) 5.5 percent in fiscal year 2026;

(iv) 7.5 percent in fiscal year 2027;

(v) 14.5 percent in fiscal year 2028;

(vi) 21.5 percent in fiscal year 2029;

(vii) 28.5 percent in fiscal year 2030;

(viii) 36.5 percent in fiscal year 2031;

(ix) 44.5 percent in fiscal year 2032; and

(x) 56.5 percent in fiscal year 2033 and thereafter; and

(3) the remainder in each fiscal year to the general fund.

new text begin After each February forecast, and prior to the following April 15, the commissioner shall
estimate the monthly deposit amount for use in the following fiscal year based on the estimate
of average revenue derived from the taxes imposed under section 297A.62, subdivision 1,
on the sale and purchase of motor vehicle repair and replacement parts from the department's
three most recent consumption tax models. new text end For purposes of this paragraph, "motor vehicle"
has the meaning given in section 297B.01, subdivision 11, and "motor vehicle repair and
replacement parts" includes (i) all parts, tires, accessories, and equipment incorporated into
or affixed to the motor vehicle as part of the motor vehicle maintenance and repair, and (ii)
paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor vehicle
maintenance or repair. For purposes of this paragraph, "tire" means any tire of the type used
on highway vehicles, if wholly or partially made of rubber and if marked according to
federal regulations for highway use.

(h) 81.56 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) 47.5 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;

(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; and

(6) 2.5 percent of the receipts must be deposited in the pollinator account established in
section 103B.101, subdivision 19.

(i) 1.5 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65 must be deposited in a regional parks and trails account
in the natural resources fund and may only be spent for parks and trails of regional
significance outside of the seven-county metropolitan area under section 85.535, based on
recommendations from the Greater Minnesota Regional Parks and Trails Commission under
section 85.536.

(j) 1.5 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65 must be deposited in an outdoor recreational
opportunities for underserved communities account in the natural resources fund and may
only be spent on projects and activities that connect diverse and underserved Minnesotans
through expanding cultural environmental experiences, exploration of their environment,
and outdoor recreational activities.

(k) The revenue dedicated under paragraph (h) 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 (h) 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 (h) must be allocated for field operations.

(l) The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
that may be sold to persons 18 years old or older and that are not prohibited from use by
the general public under section 624.21, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section
88.068;

(2) 25 percent to the fire safety account established under section 297I.06, subdivision
3; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under Laws 2017, First Special Session chapter
1, article 3, section 39.

(m) The revenues deposited under paragraphs (a) to (l) 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. 6.

Minnesota Statutes 2024, section 297A.99, subdivision 10, is amended to read:

Subd. 10.

Use of zip code in determining location of sale.

new text begin (a) new text end The lowest combined
tax rate imposed in the zip code area applies if the area includes more than one tax rate in
any level of taxing jurisdictions.

new text begin (b) new text end If a nine-digit zip code designation is not available for a street address or if a seller
is unable to determine the nine-digit zip code designation of a purchaser after exercising
due diligence to determine the designation, the seller may apply the rate for the five-digit
zip code area.

new text begin (c) new text end For the purposes of this subdivision, there is a rebuttable presumption that a seller
has exercised due diligence new text begin for a sale that requires a full street address to be completed new text end if
the seller has attempted to determine the nine-digit zip code designation by utilizing new text begin (1) the
look-up application form the United States Postal Service; (2) software certified by the
Coding Accuracy Support System; or (3) other new text end software approved by the governing board
that makes this designation from the street address and the five-digit zip code of the
purchaser. new text begin For a sale that does not require a full street address to be completed, a seller has
not exercised due diligence unless the seller has obtained or requested from the purchaser
(1) the complete street address, including the five-digit zip code; or (2) the nine-digit zip
code. A seller that has not exercised due diligence is not relieved from any additional liability
that may be due as a result of incorrect sourcing.
new text end

new text begin (d) new text end Notwithstanding subdivision 13, this subdivision applies to all local sales taxes
without regard to the date of authorization. This subdivision does not apply when the
purchased product is received by the purchaser at the business location of the seller.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2025.
new text end

Sec. 7.

Minnesota Statutes 2024, section 297A.995, subdivision 2, is amended to read:

Subd. 2.

Definitions.

As used in this section:

(a) "Agreement" means the Streamlined Sales and Use Tax Agreement.

(b) "Certified automated system" means software certified jointly by the states that are
signatories to the agreement to calculate the tax imposed by each jurisdiction on a transaction,
determine the amount of tax to remit to the appropriate state, and maintain a record of the
transaction.

(c) "Certified service provider" means an agent certified deleted text begin jointly by the states that are
signatories to the agreement to perform all of the seller's sales tax functions deleted text end new text begin under the
Agreement to perform the seller's sales and use tax functions as outlined in the contract
between the Streamlined Sales Tax Governing Board and the certified service providers,
except that sellers retain the obligation to remit tax on their own purchases new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2025.
new text end

Sec. 8.

Minnesota Statutes 2024, section 297A.995, subdivision 10, is amended to read:

Subd. 10.

Relief from certain liability.

(a) Notwithstanding subdivision 9, sellers and
certified service providers are relieved from liability to the state for having charged and
collected the incorrect amount of sales or use tax resulting from the seller or certified service
provider (1) relying on erroneous data provided by the commissioner in the database files
on tax rates, boundaries, or taxing jurisdiction assignments, or (2) relying on erroneous data
provided by the state in its taxability matrix concerning the taxability of products and
services.

(b) Notwithstanding subdivision 9, sellers and certified service providers are relieved
from liability to the state for having charged and collected the incorrect amount of sales or
use tax resulting from the seller or certified service provider relying on the certification by
the commissioner as to the accuracy of a certified automated system as to the taxability of
product categories. The relief from liability provided by this paragraph does not apply when
the sellers or certified service providers have incorrectly classified an item or transaction
into a product category, unless the item or transaction within a product category was approved
by the commissioner or approved jointly by the states that are signatories to the agreement.
The sellers and certified service providers must revise a classification within ten days after
receipt of notice from the commissioner that an item or transaction within a product category
is incorrectly classified as to its taxability, or they are not relieved from liability for the
incorrect classification following the notification.

(c) Notwithstanding subdivision 9, if there are not at least 30 days between the enactment
of a new tax rate and the effective date of the new rate, sellers and certified service providers
shall be relieved from liability for failing to collect tax at the new rate during the first 30
days of the rate change, beginning on the day after the date of enactment of the rate change,
provided the seller or certified service provider continued to impose and collect the tax at
the immediately preceding tax rate during this period. Relief from liability provided by this
paragraph shall not apply if the failure to collect at the newly effective rate extends beyond
30 days after the enactment of the new rate. The relief provided by this paragraph shall not
apply if the commissioner determines that the seller or certified service provider fraudulently
failed to collect at the new rate or that the seller or certified service provider solicited
purchasers based on the immediately preceding tax rate.

new text begin (d) Certified service providers are relieved from liability to the state when a seller fails
to remit all or a portion of the seller's taxes prior to the due date of the remittance if the
certified service provider has provided notification as outlined in the contract between the
Streamlined Sales Tax Governing Board and the certified service provider.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2025.
new text end

ARTICLE 11

DEPARTMENT OF REVENUE; MISCELLANEOUS

Section 1.

Minnesota Statutes 2024, section 270C.445, subdivision 3, is amended to read:

Subd. 3.

Standards of conduct.

No tax preparer shall:

(1) without good cause fail to promptly, diligently, and without unreasonable delay
complete a client's return;

(2) obtain the signature of a client to a return or authorizing document that contains
blank spaces to be filled in after it has been signed;

(3) fail to sign a client's return when compensation for services rendered has been made;

(4) fail to provide on a client's return the preparer tax identification number when required
under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;

(5) fail or refuse to give a client a copy of any document requiring the client's signature
within a reasonable time after the client signs the document;

(6) fail to retain for at least four years a copy of a client's returns;

(7) fail to maintain a confidential relationship with clients or former clients;

(8) fail to take commercially reasonable measures to safeguard a client's nonpublic
personal information;

(9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or
indirectly, any false, deceptive, or misleading statement or representation relating to or in
connection with the offering or provision of tax preparation services;

(10) require a client to enter into a loan arrangement in order to complete a client's return;

(11) claim credits or deductions on a client's return for which the tax preparer knows or
reasonably should know the client does not qualify;

(12) report a household income on a client's claim filed under chapter 290A that the tax
preparer knows or reasonably should know is not accurate;

(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
13, 20, 20a, 26, or 28;

(14) whether or not acting as a taxpayer representative, fail to conform to the standards
of conduct required by Minnesota Rules, part 8052.0300, subpart 4;

(15) whether or not acting as a taxpayer representative, engage in any conduct that is
incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;

(16) whether or not acting as a taxpayer representative, engage in any conduct that is
disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;

(17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
refund for tax preparation services;

(18) under any circumstances, withhold or fail to return to a client a document provided
by the client for use in preparing the client's return;

(19) take control or ownership of a client's refund new text begin or department payment new text end by any means,
including:

(i) directly or indirectly endorsing or otherwise negotiating a check or other refund
instrument, including an electronic version of a check;

(ii) directing an electronic or direct deposit of the refund new text begin or department payment new text end into an
account unless the client's name is on the account; and

(iii) establishing or using an account in the preparer's name to receive a client's refund new text begin
or department payment new text end through a direct deposit or any other instrument unless the client's
name is also on the account, except that a taxpayer may assign the portion of a refund
representing the Minnesota education credit available under section 290.0674 to a bank
account without the client's name, as provided under section 290.0679;

(20) fail to act in the best interests of the client;

(21) fail to safeguard and account for any money handled for the client;

(22) fail to disclose all material facts of which the preparer has knowledge which might
reasonably affect the client's rights and interests;

(23) violate any provision of section 332.37;

(24) include any of the following in any document provided or signed in connection
with the provision of tax preparation services:

(i) a hold harmless clause;

(ii) a confession of judgment or a power of attorney to confess judgment against the
client or appear as the client in any judicial proceeding;

(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
a debtor;

(iv) an assignment of or an order for payment of wages or other compensation for
services;

(v) a provision in which the client agrees not to assert any claim or defense otherwise
available;

(vi) a waiver of any provision of this section or a release of any obligation required to
be performed on the part of the tax preparer; or

(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
a class basis; or

(25) if making, providing, or facilitating a refund anticipation loan, fail to provide all
disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a
form that may be retained by the client.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 2.

Minnesota Statutes 2024, section 270C.445, subdivision 6, is amended to read:

Subd. 6.

Enforcement; administrative order; penalties; cease and desist.

(a) The
commissioner may impose an administrative penalty of not more than $1,000 per violation
of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed
for any conduct for which a tax preparer penalty is imposed under section 289A.60,
subdivision 13. The commissioner may terminate a tax preparer's authority to transmit
returns electronically to the state, if the commissioner determines the tax preparer engaged
in a pattern and practice of violating this section. Imposition of a penalty under this paragraph
is subject to the contested case procedure under chapter 14. The commissioner shall collect
the penalty in the same manner as the income tax. There is no right to make a claim for
refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed
under this paragraph are public data.

(b) In addition to the penalty under paragraph (a), if the commissioner determines that
a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may
issue an administrative order to the tax preparer requiring the tax preparer to cease and
desist from committing the violation. The administrative order may include an administrative
penalty provided in paragraph (a).

(c) If the commissioner issues an administrative order under paragraph (b), the
commissioner must send the order to the tax preparer addressed to the last known address
of the tax preparer.

(d) A cease and desist order under paragraph (b) must:

(1) describe the act, conduct, or practice committed and include a reference to the law
that the act, conduct, or practice violates; and

(2) provide notice that the tax preparer may request a hearing as provided in this
subdivision.

(e) Within 30 days after the commissioner issues an administrative order under paragraph
(b), the tax preparer may request a hearing to review the commissioner's action. The request
for hearing must be made in writing and must be served on the commissioner at the address
specified in the order. The hearing request must specifically state the reasons for seeking
review of the order. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed.

(f) If a tax preparer does not timely request a hearing regarding an administrative order
issued under paragraph (b), the order becomes a final order of the commissioner and is not
subject to review by any court or agency.

(g) If a tax preparer timely requests a hearing regarding an administrative order issued
under paragraph (b), the hearing must be commenced new text begin by the issuance of a notice of and
order for hearing by the commissioner new text end within deleted text begin ten deleted text end new text begin 30 new text end days after the commissioner receives
the request for a hearing.

(h) A hearing timely requested under paragraph (e) is subject to the contested case
procedure under chapter 14, as modified by this subdivision. The administrative law judge
must issue a report containing findings of fact, conclusions of law, and a recommended
order within deleted text begin ten deleted text end new text begin 30 new text end days after the completion of the hearing, the receipt of late-filed exhibits,
or the submission of written arguments, whichever is later.

(i) Within deleted text begin five deleted text end new text begin 15 new text end days of the date of the administrative law judge's report issued under
paragraph (h), any party aggrieved by the administrative law judge's report may submit
written exceptions and arguments to the commissioner. Within deleted text begin 15 deleted text end new text begin 45 new text end days after receiving
the administrative law judge's report, the commissioner must issue an order vacating,
modifying, or making final the administrative order.

(j) The commissioner and the tax preparer requesting a hearing may by agreement
lengthen any time periods prescribed in paragraphs (g) to (i).

(k) An administrative order issued under paragraph (b) is in effect until it is modified
or vacated by the commissioner or an appellate court. The administrative hearing provided
by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute
the exclusive remedy for a tax preparer aggrieved by the order.

(l) The commissioner may impose an administrative penalty, in addition to the penalty
under paragraph (a), up to $5,000 per violation of a cease and desist order issued under
paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case
procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under
this paragraph, the tax preparer assessed the penalty may request a hearing to review the
penalty order. The request for hearing must be made in writing and must be served on the
commissioner at the address specified in the order. The hearing request must specifically
state the reasons for seeking review of the order. The cease and desist order issued under
paragraph (b) is not subject to review in a proceeding to challenge the penalty order under
this paragraph. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed. If the tax preparer does not
timely request a hearing, the penalty order becomes a final order of the commissioner and
is not subject to review by any court or agency. A penalty imposed by the commissioner
under this paragraph may be collected and enforced by the commissioner as an income tax
liability. There is no right to make a claim for refund under section 289A.50 of the penalty
imposed under this paragraph. A penalty imposed under this paragraph is public data.

(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the
commissioner may terminate the tax preparer's authority to transmit returns electronically
to the state. Termination under this paragraph is public data.

(n) A cease and desist order issued under paragraph (b) is public data when it is a final
order.

(o) Notwithstanding any other law, the commissioner may impose a penalty or take other
action under this subdivision against a tax preparer, with respect to a return, within the
period to assess tax on that return as provided by sections 289A.38 to 289A.382.

(p) Notwithstanding any other law, the imposition of a penalty or any other action against
a tax preparer under this subdivision, other than with respect to a return, must be taken by
the commissioner within five years of the violation of statute.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for penalties assessed and orders issued
after the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2024, section 273.13, subdivision 22, is amended to read:

Subd. 22.

Class 1.

(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.

The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.

(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:

(1) any person who is blind as defined in section 256D.35, or the person who is blind
and the spouse of the person who is blind;

(2) any person who is permanently and totally disabled or by the person with a disability
and the spouse of the person with a disability; or

(3) the surviving spouse of a veteran who was permanently and totally disabled
homesteading a property classified under this paragraph for taxes payable in 2008.

Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.

Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.

Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of deleted text begin .45 deleted text end new text begin 0.45 new text end percent of its market value. The remaining
market value of class 1b property is classified as class 1a deleted text begin or deleted text end new text begin property, new text end class 2a property, new text begin or
class 4d(2) property, new text end whichever is appropriate.

(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
the Department of Natural Resources, and is devoted to temporary and seasonal residential
occupancy for recreational purposes but not devoted to commercial purposes for more than
250 days in the year preceding the year of assessment, and that includes a portion used as
a homestead by the owner, which includes a dwelling occupied as a homestead by a
shareholder of a corporation that owns the resort, a partner in a partnership that owns the
resort, or a member of a limited liability company that owns the resort even if the title to
the homestead is held by the corporation, partnership, or limited liability company. For
purposes of this paragraph, property is devoted to a commercial purpose on a specific day
if any portion of the property, excluding the portion used exclusively as a homestead, is
used for residential occupancy and a fee is charged for residential occupancy. Class 1c
property must contain three or more rental units. A "rental unit" is defined as a cabin,
condominium, townhouse, sleeping room, or individual camping site equipped with water
and electrical hookups for recreational vehicles. Class 1c property must provide recreational
activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill
or cross-country ski equipment; provide marina services, launch services, or guide services;
or sell bait and fishing tackle. Any unit in which the right to use the property is transferred
to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
for class 1c even though it may remain available for rent. A camping pad offered for rent
by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
the same owner owns two separate parcels that are located in the same township, and one
of those properties is classified as a class 1c property and the other would be eligible to be
classified as a class 1c property if it was used as the homestead of the owner, both properties
will be assessed as a single class 1c property; for purposes of this sentence, properties are
deemed to be owned by the same owner if each of them is owned by a limited liability
company, and both limited liability companies have the same membership. The portion of
the property used as a homestead is class 1a property under paragraph (a). The remainder
of the property is classified as follows: the first $600,000 of market value is tier I, the next
$1,700,000 of market value is tier II, and any remaining market value is tier III. The
classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25
percent. Owners of real and personal property devoted to temporary and seasonal residential
occupancy for recreation purposes in which all or a portion of the property was devoted to
commercial purposes for not more than 250 days in the year preceding the year of assessment
desiring classification as class 1c, must submit a declaration to the assessor designating the
cabins or units occupied for 250 days or less in the year preceding the year of assessment
by January 15 of the assessment year. Those cabins or units and a proportionate share of
the land on which they are located must be designated as class 1c as otherwise provided.
The remainder of the cabins or units and a proportionate share of the land on which they
are located must be designated as class 3a commercial. The owner of property desiring
designation as class 1c property must provide guest registers or other records demonstrating
that the units for which class 1c designation is sought were not occupied for more than 250
days in the year preceding the assessment if so requested. The portion of a property operated
as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5)
other nonresidential facility operated on a commercial basis not directly related to temporary
and seasonal residential occupancy for recreation purposes does not qualify for class 1c.

(d) Class 1d property includes structures that meet all of the following criteria:

(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;

(2) the structure is occupied exclusively by seasonal farm workers during the time when
they work on that farm, and the occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of farm equipment and produce
does not disqualify the property from classification under this paragraph;

(3) the structure meets all applicable health and safety requirements for the appropriate
season; and

(4) the structure is not salable as residential property because it does not comply with
local ordinances relating to location in relation to streets or roads.

The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2025
and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2024, section 289A.12, subdivision 18, is amended to read:

Subd. 18.

deleted text begin Returns deleted text end new text begin Return new text end by qualified heirs.

A qualified heir, as defined in section
291.03, subdivision 8, paragraph (c), must file deleted text begin two returns deleted text end new text begin a return new text end with the commissioner
attesting that no disposition or cessation as provided by section 291.03, subdivision 11,
paragraph (a), occurred. deleted text begin The first return must be filed no earlier than 24 months and no later
than 26 months after the decedent's death. deleted text end The deleted text begin second deleted text end return must be filed no earlier than
36 months and no later than 39 months after the decedent's death.

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 2024, section 297E.06, subdivision 4, is amended to read:

Subd. 4.

Annual audit deleted text begin , deleted text end new text begin and new text end certified inventory deleted text begin , and cash count deleted text end .

(a) An organization
licensed under chapter 349 with gross receipts from lawful gambling of more than $750,000
in any year must have an annual financial audit of its lawful gambling activities and funds
for that year. For the purposes of this subdivision, "gross receipts" does not include a licensed
organization's receipts from electronic pull-tabs regulated under chapter 349 provided the
electronic pull-tab manufacturer has completed an annual system and organization controls
audit, containing standards that must incorporate and be consistent with standards prescribed
by the American Institute of Certified Public Accountants.

(b) The commissioner may require a financial audit of the lawful gambling activities
and funds of an organization licensed under chapter 349, with gross receipts less than
$750,000 annually, when an organization has:

(1) failed to timely file required gambling tax returns;

(2) failed to timely pay the gambling tax or regulatory fee;

(3) filed fraudulent gambling tax returns;

(4) failed to take corrective actions required by the commissioner; or

(5) failed to otherwise comply with this chapter.

(c) Audits under this subdivision must be performed by an independent accountant firm
licensed in accordance with chapter 326A.

(d) An organization licensed under chapter 349 must perform an annual certified inventory
deleted text begin and cash count deleted text end new text begin report new text end at the end of its fiscal year and submit the report to the commissioner
within 30 days after the end of its fiscal year. The report shall be on a form prescribed by
the commissioner.

(e) The commissioner of revenue shall prescribe standards for the audits deleted text begin , deleted text end new text begin and new text end certified
inventory deleted text begin , and cash count reports deleted text end new text begin report new text end required under this subdivision. The standards may
vary based on the gross receipts of the organization. The standards must incorporate and
be consistent with standards prescribed by the American Institute of Certified Public
Accountants. A complete, true, and correct copy of the audits, certified inventory, and cash
count report must be filed as prescribed by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 6.

Minnesota Statutes 2024, section 297I.20, subdivision 4, is amended to read:

Subd. 4.

Film production credit.

(a) A taxpayer may claim a credit against the premiums
tax imposed under this chapter equal to the amount indicated on the credit certificate
statement issued to the company under section 116U.27. If the amount of the credit exceeds
the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of
the five succeeding taxable years. The entire amount of the excess unused credit for the
taxable year must be carried first to the earliest of the taxable years to which the credit may
be carried and then to each successive year to which the credit may be carried. This credit
does not affect the calculation of fire state aid under section 477B.03 and police state aid
under section 477C.03.

(b) This subdivision expires January 1, deleted text begin 2025 deleted text end new text begin 2031 new text end , for taxable years beginning after and
premiums received after December 31, deleted text begin 2024 deleted text end new text begin 2030 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Laws 2023, chapter 1, section 28, is amended to read:

Sec. 28. EXTENSION OF STATUTE OF LIMITATIONS.

(a) Notwithstanding any law to the contrary, a taxpayer whose tax liability changes as
a result of this act may file an amended return by December 31, 2023. The commissioner
may review and assess the return of a taxpayer covered by this provision for the later of:

(1) the periods under Minnesota Statutes, sections 289A.38; deleted text begin 289.39 deleted text end new text begin 289A.39 new text end , subdivision
3; and 289A.40; or

(2) one year from the time the amended return is filed as a result of a change in tax
liability under this section.

(b) Interest on any additional liabilities as a result of any provision in this act accrue
beginning on January 1, 2024.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively at the same time the changes
incorporated in Laws 2023, chapter 1, were effective for federal purposes.
new text end

APPENDIX

Repealed Minnesota Statutes: 25-05695

13.4967 OTHER TAX DATA CODED ELSEWHERE.

Subd. 2a.

Assignment of refund.

Data regarding assignment of individual income tax refunds is classified by section 290.0679, subdivision 9.

Subd. 5.

Marijuana and controlled substance tax information.

Disclosure of information obtained under chapter 297D is governed by section 297D.13, subdivisions 1 to 3.

275.065 PROPOSED PROPERTY TAXES; NOTICE.

Subd. 3c.

Notice of proposed taxes; property subject to chapter 276A.

In the case of property subject to the areawide tax under section 276A.06, subdivision 7, for both the current year taxes and the proposed tax amounts, the net tax capacity portion of the taxes shown for each taxing jurisdiction must be based on the property's total net tax capacity multiplied by the jurisdiction's actual or proposed net tax capacity tax rate. In addition to the tax amounts shown for each jurisdiction, the statement must include a line showing the "fiscal disparities adjustment" equal to the total gross tax payable minus the sum of the tax amounts shown for the individual taxing jurisdictions. The fiscal disparities adjustment may be a negative number. If the fiscal disparities adjustment for either the current year taxes or the proposed tax amount is a negative number, the percentage change must not be shown. In all other respects the statement must fulfill the requirements of subdivision 3.

276.04 NOTICE OF RATES; PROPERTY TAX STATEMENTS.

Subd. 2a.

Contents of tax statements; property subject to chapter 276A.

In the case of property subject to the areawide tax under section 276A.06, subdivision 7, for both the current year taxes and the previous year tax amounts, the net tax capacity portion of the tax shown for each taxing jurisdiction must be based on the property's total net tax capacity multiplied by the jurisdiction's net tax capacity tax rate. In addition to the tax amounts shown for each jurisdiction, the statement must include a line showing the "fiscal disparities adjustment" equal to the total gross tax payable minus the sum of the tax amounts shown for the individual taxing jurisdictions for each year. The fiscal disparities adjustment may be a negative number. In all other respects the statement must fulfill the requirements of subdivision 2.

290.0679 ASSIGNMENT OF REFUND.

Subdivision 1.

Definitions.

(a) "Qualifying taxpayer" means a resident who has a child in kindergarten through grade 12 in the current tax year and who met the income requirements under section 290.0674, subdivision 2, for receiving the education credit in the tax year preceding the assignment of the taxpayer's refund.

(b) "Education credit" means the credit allowed under section 290.0674.

(c) "Refund" means an individual income tax refund.

(d) "Financial institution" means a state or federally chartered bank, savings bank, savings association, or credit union.

(e) "Qualifying organization" means a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code.

(f) "Assignee" means a financial institution or qualifying organization that is entitled to receive payment of a refund assigned under this section.

Subd. 2.

Conditions for assignment.

A qualifying taxpayer may assign all or part of an anticipated refund for the current and future taxable years to a financial institution or a qualifying organization. A financial institution or qualifying organization accepting assignment must pay the amount secured by the assignment to a third-party vendor. The commissioner of education shall, upon request from a third-party vendor, certify that the vendor's products and services qualify for the education credit. A denial of a certification may be appealed to the commissioner pursuant to this subdivision and notwithstanding chapter 14. A financial institution or qualifying organization that accepts assignments under this section must verify as part of the assignment documentation that the product or service to be provided by the third-party vendor has been certified by the commissioner of education as qualifying for the education credit. The amount assigned for the current and future taxable years may not exceed the maximum allowable education credit for the current taxable year. Both the taxpayer and spouse must consent to the assignment of a refund from a joint return.

Subd. 3.

Consent for disclosure.

When the taxpayer applies to the financial institution or the qualifying organization for a loan to be secured by the assignment under subdivision 2, the taxpayer must sign a written consent on a form prescribed by the commissioner. The consent must authorize the commissioner to disclose to the financial institution or qualifying organization the total amount of state taxes owed or revenue recapture claims filed under chapter 270A against the taxpayer, and the total amount of outstanding assignments made by the taxpayer under this section. For a refund from a joint return, the consent must also authorize the disclosure of taxes, revenue recapture claims, and assignments relating to the taxpayer's spouse, and must be signed by the spouse. The financial institution or qualifying organization may request that the taxpayer provide a copy of the taxpayer's previous year's income tax return, if any, and may assist the taxpayer in requesting a copy of the previous year's return from the commissioner.

Subd. 4.

Consumer disclosure.

(a) A third-party vendor that receives payment of the amount secured by an assignment must comply with the requirements of this subdivision.

(b) The third-party vendor must disclose to the taxpayer, in plain language:

(1) the cost of each product or service for which the third-party vendor separately charges the taxpayer;

(2) any fees charged to the taxpayer for tax preparation services; and

(3) for qualifying low-income taxpayers, information on the availability of free tax preparation services.

(c) The third-party vendor must provide to the taxpayer executed copies of any documents signed by the taxpayer.

Subd. 5.

Filing of assignment.

The commissioner shall prescribe the form of and manner for filing an assignment of a refund under this section.

Subd. 6.

Effect of assignment.

The taxpayer may not revoke an assignment after it has been filed. The assignee must notify the commissioner if the loan secured by the assignment has been paid in full, in which case the assignment is canceled. An assignment is in effect until the amount assigned is refunded in full to the assignee, or until the assignee cancels the assignment.

Subd. 7.

Payment of refund.

When a refund assigned under this section is issued by the commissioner, the proceeds of the refund, as defined in subdivision 1, paragraph (c), must be distributed in the following order:

(1) to satisfy any delinquent tax obligations of the taxpayer which are owed to the commissioner;

(2) to claimant agencies to satisfy any revenue recapture claims filed against the taxpayer, in the order of priority of the claims set forth in section 270A.10;

(3) to assignees to satisfy assignments under this section, based on the order in time in which the commissioner received the assignments; and

(4) to the taxpayer.

Subd. 8.

Legal action.

If there is a dispute between the taxpayer and the assignee after the commissioner has remitted the taxpayer's refund to the assignee, the taxpayer's only remedy is to bring an action against the assignee in court to recover the refund. The action must be brought within two years after the commissioner remits the refund to the assignee. The commissioner may not be a party to the proceeding.

Subd. 9.

Assignments private data.

Information regarding assignments under this section is classified as private data on individuals.

297D.01 DEFINITIONS.

Subdivision 1.

Illegal cannabis.

"Illegal cannabis" means any taxable cannabis product as defined in section 295.81, subdivision 1, paragraph (r), whether real or counterfeit, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of chapter 342 or Minnesota criminal laws.

Subd. 2.

Controlled substance.

"Controlled substance" means any drug or substance, whether real or counterfeit, as defined in section 152.01, subdivision 4, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of Minnesota laws. "Controlled substance" does not include illegal cannabis.

Subd. 3.

Tax obligor or obligor.

"Tax obligor" or "obligor" means a person who in violation of Minnesota law manufactures, produces, ships, transports, or imports into Minnesota or in any manner acquires or possesses more than 42-1/2 grams of illegal cannabis, or seven or more grams of any controlled substance, or ten or more dosage units of any controlled substance which is not sold by weight. A quantity of illegal cannabis or other controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.

Subd. 4.

Commissioner.

"Commissioner" means the commissioner of revenue.

297D.02 ADMINISTRATION.

The commissioner of revenue shall administer this chapter. The commissioner shall prescribe the content, format, and manner of all forms and other documents required to be filed under this chapter pursuant to section 270C.30. Payments required by this chapter must be made to the commissioner on the form provided by the commissioner. Tax obligors are not required to give their name, address, Social Security number, or other identifying information on the form. The commissioner shall collect all taxes under this chapter.

297D.03 RULES.

The commissioner may adopt rules necessary to enforce this chapter. The commissioner shall adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or other official indicia for marijuana and controlled substances on which a tax is imposed.

297D.04 TAX PAYMENT REQUIRED FOR POSSESSION.

No tax obligor may possess any illegal cannabis or controlled substance upon which a tax is imposed by section 297D.08 unless the tax has been paid on the illegal cannabis or a controlled substance as evidenced by a stamp or other official indicia.

297D.05 NO IMMUNITY.

Nothing in this chapter may in any manner provide immunity for a tax obligor from criminal prosecution pursuant to Minnesota law.

297D.06 PHARMACEUTICALS.

Nothing in this chapter requires persons registered under chapter 151 or otherwise lawfully in possession of illegal cannabis or a controlled substance to pay the tax required under this chapter.

297D.07 MEASUREMENT.

For the purpose of calculating the tax under section 297D.08, a quantity of illegal cannabis or a controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.

297D.08 TAX RATE.

A tax is imposed on illegal cannabis and controlled substances as defined in section 297D.01 at the following rates:

(1) on each gram of illegal cannabis, or each portion of a gram, $3.50; and

(2) on each gram of controlled substance, or portion of a gram, $200; or

(3) on each ten dosage units of a controlled substance that is not sold by weight, or portion thereof, $400.

297D.085 CREDIT FOR PREVIOUSLY PAID TAXES.

If another state or local unit of government has previously assessed an excise tax on the illegal cannabis or controlled substances, the taxpayer must pay the difference between the tax due under section 297D.08 and the tax previously paid. If the tax previously paid to the other state or local unit of government was equal to or greater than the tax due under section 297D.08, no tax is due. The burden is on the taxpayer to show that an excise tax on the illegal cannabis or controlled substances has been paid to another state or local unit of government.

297D.09 PENALTIES; CRIMINAL PROVISIONS.

Subdivision 1.

Penalties.

Any tax obligor violating this chapter is subject to a penalty of 100 percent of the tax in addition to the tax imposed by section 297D.08. The penalty will be collected as part of the tax.

Subd. 1a.

Criminal penalty; sale without affixed stamps.

In addition to the tax penalty imposed, a tax obligor distributing or possessing illegal cannabis or controlled substances without affixing the appropriate stamps, labels, or other indicia is guilty of a crime and, upon conviction, may be sentenced to imprisonment for not more than seven years or to payment of a fine of not more than $14,000, or both.

Subd. 2.

Statute of limitations.

Notwithstanding section 628.26, or any other provision of the criminal laws of this state, an indictment may be found and filed, or a complaint filed, upon any criminal offense specified in this section, in the proper court within six years after the commission of this offense.

297D.10 STAMP PRICE.

Official stamps, labels, or other indicia to be affixed to all illegal cannabis or controlled substances shall be purchased from the commissioner. The purchaser shall pay 100 percent of face value for each stamp, label, or other indicia at the time of the purchase.

297D.11 PAYMENT DUE.

Subdivision 1.

Stamps affixed.

When a tax obligor purchases, acquires, transports, or imports into this state illegal cannabis or controlled substances on which a tax is imposed by section 297D.08, and if the indicia evidencing the payment of the tax have not already been affixed, the tax obligor shall have them permanently affixed on the illegal cannabis or controlled substance immediately after receiving the substance. Each stamp or other official indicia may be used only once.

Subd. 2.

Payable on possession.

Taxes imposed upon illegal cannabis or controlled substances by this chapter are due and payable immediately upon acquisition or possession in this state by a tax obligor.

297D.12 ALL ASSESSMENTS ARE JEOPARDY.

Subdivision 1.

Assessment procedure.

An assessment for a tax obligor not possessing valid stamps or other official indicia showing that the tax has been paid shall be considered a jeopardy assessment or collection, as provided in section 270C.36. The commissioner shall assess a tax and applicable penalties based on personal knowledge or information available to the commissioner; mail the taxpayer at the taxpayer's last known address or serve in person, a written notice of the amount of tax and penalty; demand its immediate payment; and, if payment is not immediately made, collect the tax and penalty by any method prescribed in chapter 270C, except that the commissioner need not await the expiration of the times specified in chapter 270C.

Subd. 2.

Injunction prohibited.

No person may bring suit to enjoin the assessment or collection of any taxes, interest, or penalties imposed by this chapter.

Subd. 3.

Standard of proof.

The tax and penalties assessed by the commissioner are presumed to be valid and correctly determined and assessed. The burden is upon the taxpayer to show their incorrectness or invalidity. Any statement filed by the commissioner with the court administrator, or any other certificate by the commissioner of the amount of tax and penalties determined or assessed is admissible in evidence and is prima facie evidence of the facts it contains.

297D.13 CONFIDENTIAL NATURE OF INFORMATION.

Subdivision 1.

Disclosure prohibited.

Notwithstanding any law to the contrary, neither the commissioner nor a public employee may reveal facts contained in a report or return required by this chapter or any information obtained from a tax obligor; nor can any information contained in such a report or return or obtained from a tax obligor be used against the tax obligor in any criminal proceeding, unless independently obtained, except in connection with a proceeding involving taxes due under this chapter from the tax obligor making the return.

Subd. 2.

Penalty for disclosure.

Any person violating this section is guilty of a gross misdemeanor.

Subd. 3.

Statistics.

This section does not prohibit the commissioner from publishing statistics that do not disclose the identity of tax obligors or the contents of particular returns or reports.

Subd. 4.

Possession of stamps.

A stamp denoting payment of the tax imposed under this chapter must not be used against the taxpayer in a criminal proceeding, except that the stamp may be used against the taxpayer in connection with the administration or civil or criminal enforcement of the tax imposed under this chapter or any similar tax imposed by another state or local unit of government.

477A.32 LOCAL GOVERNMENT CANNABIS AID.

Subdivision 1.

Definitions.

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

(1) "city" means a statutory or home rule charter city; and

(2) "director" means the director of the Office of Cannabis Management under section 342.02.

Subd. 2.

Certification to commissioner of revenue.

(a) By July 15, 2024, and annually thereafter, the commissioner of management and budget must certify to the commissioner of revenue the balance of the local government cannabis aid account in the special revenue fund as of the immediately preceding June 30.

(b) By June 1, 2024, and annually thereafter, the director must certify to the commissioner of revenue the number of cannabis businesses, as defined under section 342.01, subdivision 14, licensed under chapter 342 as of the previous January 1, disaggregated by county and city.

Subd. 3.

Aid to counties.

(a) Beginning for aid payable in 2024, the amount available for aid to counties under this subdivision equals 50 percent of the amount certified in that year to the commissioner under subdivision 2, paragraph (a).

(b) Twenty percent of the amount under paragraph (a) must be distributed equally among all counties.

(c) Eighty percent of the amount under paragraph (a) must be distributed proportionally to each county according to the number of cannabis businesses located in the county as compared to the number of cannabis businesses in all counties as of the most recent certification under subdivision 2, paragraph (b).

Subd. 4.

Aid to cities.

(a) Beginning for aid payable in 2024, the amount available for aid to cities under this subdivision equals 50 percent of the amount certified in that year to the commissioner under subdivision 2, paragraph (a).

(b) The amount under paragraph (a) must be distributed proportionally to each city according to the number of cannabis businesses located in the city as compared to the number of cannabis businesses in all cities as of the most recent certification under subdivision 2, paragraph (b).

Subd. 5.

Payment.

The commissioner of revenue must compute the amount of aid payable to each county and city under this section. On or before September 1 of each year, the commissioner must certify the amount to be paid to each county and city in that year. The commissioner must pay the full amount of the aid on December 26 annually.

Subd. 6.

Appropriation.

Beginning in fiscal year 2025 and annually thereafter, the amount in the local government cannabis aid account in the special revenue fund is annually appropriated to the commissioner of revenue to make the aid payments required under this section.