SF 2237

as introduced - 88th Legislature (2013 - 2014) Posted on 03/04/2014 09:33am

A bill for an act
relating to taxation; removing obsolete, redundant, and unnecessary laws and
administrative rules administered by the Department of Revenue; amending
Minnesota Statutes 2012, sections 16D.02, subdivisions 3, 6; 16D.04,
subdivisions 3, 4; 16D.07; 16D.11, subdivisions 1, 3, 7; 84A.20, subdivision 2;
84A.31, subdivision 2; 115B.49, subdivision 4; 163.06, subdivision 1; 270.11,
subdivision 1; 270.12, subdivisions 2, 4; 270A.03, subdivision 2; 270B.14,
subdivision 3; 270C.085; 270C.52, subdivision 2; 272.01, subdivisions 1,
3; 272.025, subdivision 1; 272.027, subdivision 1; 272.029, subdivision 6;
273.061, subdivision 6; 273.10; 273.11, subdivision 13; 273.112, subdivision
6a; 273.18; 274.01, subdivisions 1, 2; 275.08, subdivisions 1a, 1d; 275.74,
subdivision 2; 275.75; 279.03; 279.16; 279.23; 279.25; 280.001; 280.03;
280.07; 280.11; 281.03; 281.327; 282.01, subdivision 6; 282.04, subdivision
4; 282.261, subdivisions 2, 4, 5; 282.322; 287.30; 289A.25, subdivision 1;
290.01, subdivisions 5, 19f, 29; 290.015, subdivision 1; 290.07, subdivisions 1,
2; 290.0922, subdivision 3; 290.095, subdivision 3; 290.9728, subdivision 2;
297A.70, subdivision 10; 297A.94; 297B.09; 297F.03, subdivision 2; 297I.05,
subdivision 14; 412.131; 469.176, subdivisions 1b, 3; 473.665, subdivision 5;
477A.0124, subdivision 5; 477A.014, subdivision 1; 611.27, subdivisions 13, 15;
Minnesota Statutes 2013 Supplement, sections 273.032; 273.13, subdivision 23;
273.1325, subdivision 2; 275.70, subdivision 5; 279.37, subdivision 2; 281.17;
290.01, subdivision 19d; 290.0921, subdivision 3; 290.191, subdivision 5;
297A.61, subdivision 3; 297A.68, subdivision 5; 297A.75, subdivisions 1, 2, 3;
423A.022, subdivision 3; 469.1763, subdivision 2; repealing Minnesota Statutes
2012, sections 16D.02, subdivisions 5, 8; 16D.11, subdivision 2; 270C.131;
270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 48, 51, 53,
67, 72, 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03,
subdivision 3; 273.075; 273.1115; 273.1383; 273.1386; 273.80; 275.77; 279.32;
281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23;
287.20, subdivision 4; 287.27, subdivision 2; 289A.56, subdivision 7; 290.01,
subdivisions 4b, 19e, 20e; 290.06, subdivisions 30, 31; 290.0674, subdivision
3; 290.33; 290C.02, subdivisions 5, 9; 290C.06; 291.41; 291.42; 291.43;
291.44; 291.45; 291.46; 291.47; 295.52, subdivision 7; 297A.68, subdivision
38; 297A.71, subdivisions 4, 5, 7, 10, 17, 18, 20, 32; 297F.08, subdivision 11;
297H.10, subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b;
469.176, subdivision 1i; 469.1764; 469.177, subdivision 10; 469.330; 469.331;
469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339;
469.340, subdivisions 1, 2, 3, 5; 469.341; 477A.0124, subdivisions 1, 6; 505.173;
Minnesota Statutes 2013 Supplement, section 469.340, subdivision 4; Minnesota
Rules, parts 8002.0200, subpart 8; 8007.0200; 8100.0800; 8130.7500, subpart 7;
8130.8900, subpart 3; 8130.9500, subparts 1, 1a, 2, 3, 4, 5.

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

Section 1.

Minnesota Statutes 2012, section 16D.02, subdivision 3, is amended to read:

Subd. 3.

Debt.

"Debt" means an amount owed to the state directly, or through a
state agency, on account of a fee, duty, lease, direct loan, loan insured or guaranteed by
the state, rent, service, sale of real or personal property, overpayment, fine, assessment,
penalty, restitution, damages, interest, tax, bail bond, forfeiture, reimbursement, liability
owed, an assignment to the state including assignments under section 256.741, the Social
Security Act, or other state or federal law, recovery of costs incurred by the state, or any
other source of indebtedness to the state. Debt also includes amounts owed to individuals
as a result of civil, criminal, or administrative action brought by the state or a state agency
pursuant to its statutory authority or for which the state or state agency acts in a fiduciary
capacity in providing collection services in accordance with the regulations adopted under
the Social Security Act at Code of Federal Regulations, title 45, section 302.33. When
the commissioner provides collection services deleted text begin pursuant to a debt qualification plan deleted text end new text begin to a
referring agency new text end , debt also includes an amount owed to the courts, local government
units, Minnesota state colleges and universities governed by the Board of Trustees of the
Minnesota State Colleges and Universities, or University of Minnesota.

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 2012, section 16D.02, subdivision 6, is amended to read:

Subd. 6.

Referring agency.

"Referring agency" means a state agency, local
government unit, Minnesota state colleges and universities governed by the Board of
Trustees of the Minnesota State Colleges and Universities, University of Minnesota, or a
court, that has entered into deleted text begin a debt qualification plan deleted text end new text begin an agreement new text end with the commissioner
to refer debts to the commissioner for collection.

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 2012, section 16D.04, subdivision 3, is amended to read:

Subd. 3.

Services.

The commissioner shall provide collection services for a state
agency, and may provide deleted text begin for deleted text end collection services for deleted text begin a court, in accordance with the terms and
conditions of a signed debt qualification plan deleted text end new text begin referring agencies other than state agencies 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 2012, section 16D.04, subdivision 4, is amended to read:

Subd. 4.

Authority to contract.

The deleted text begin commissioners deleted text end new text begin commissioner new text end of revenue deleted text begin and
management and budget deleted text end may contract with credit bureaus, private collection agencies, and
other entities as necessary for the collection of debts. A private collection agency acting
under a contract with the commissioner of revenue deleted text begin or management and budget deleted text end is subject
to sections 332.31 to 332.45, except that the private collection agency may indicate that it
is acting under a contract with the state. The commissioner may not delegate the powers
provided under section 16D.08 to any nongovernmental entity.

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 2012, section 16D.07, is amended to read:

16D.07 NOTICE TO DEBTOR.

The referring agency shall send notice to the debtor by United States mail or
personal delivery at the debtor's last known address at least 20 days before the debt is
referred to the commissioner. The notice must state the nature and amount of the debt,
identify to whom the debt is owed, and inform the debtor of the remedies available under
this chapter. new text begin The referring agency shall advise the debtor of collection costs imposed
under section 16D.11 and of the debtor's right to cancellation of collection costs under
section 16D.11, subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2012, section 16D.11, subdivision 1, is amended to read:

Subdivision 1.

Imposition.

As determined by the commissioner of deleted text begin management and
budget deleted text end new text begin revenue new text end , collection costs shall be added to the debts referred to the commissioner
or private collection agency for collection. Collection costs are collectible by the
commissioner or private agency from the debtor at the same time and in the same
manner as the referred debt. deleted text begin The referring agency shall advise the debtor of collection
costs under this section and the debtor's right to cancellation of collection costs under
subdivision 3 at the time the agency sends notice to the debtor under section 16D.07.
deleted text end If the commissioner or private agency collects an amount less than the total due, the
payment is applied proportionally to collection costs and the underlying debt unless
the commissioner of management and budget has waived this requirement for certain
categories of debt pursuant to the department's internal guidelines. Collection costs
collected by the commissioner under this subdivision or retained under subdivision 6 shall
be deposited in the general fund as nondedicated receipts. deleted text begin Collection costs collected by
private agencies are appropriated to the referring agency to pay the collection fees charged
by the private agency. deleted text end Collections of collection costs in excess of collection agency fees
must be deposited in the general fund as nondedicated receipts.

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 2012, section 16D.11, subdivision 3, is amended to read:

Subd. 3.

Cancellation.

Collection costs imposed under subdivision 1 shall be
canceled and subtracted from the amount due if:

(1) the debtor's household income as defined in section 290A.03, subdivision 5,
excluding the exemption subtractions in subdivision 3, paragraph (3) of that section, for
the 12 months preceding the date of referral is less than twice the annual federal poverty
guideline under United States Code, title 42, section 9902, subsection (2);

(2) within 60 days after the first contact with the debtor by the deleted text begin enterprise
deleted text end new text begin commissioner new text end or collection agency, the debtor establishes reasonable cause for the failure
to pay the debt prior to referral of the debt to the deleted text begin enterprise deleted text end new text begin commissioner new text end ;

(3) a good faith dispute as to the legitimacy or the amount of the debt is made,
and payment is remitted or a payment agreement is entered into within 30 days after
resolution of the dispute;

(4) good faith litigation occurs and the debtor's position is substantially justified, and
if the debtor does not totally prevail, the debt is paid or a payment agreement is entered
into within 30 days after the judgment becomes final and nonappealable; or

(5) collection costs have been added by the referring agency and are included in
the amount of the referred debt.

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 2012, section 16D.11, subdivision 7, is amended to read:

Subd. 7.

Adjustment of rate.

By June 1 of each year, the commissioner shall
determine the rate of collection costs for debts referred to the deleted text begin enterprise deleted text end new text begin commissioner
new text end during the next fiscal year. The rate is a percentage of the debts in an amount that most
nearly equals the costs of the deleted text begin enterprise deleted text end new text begin commissioner new text end necessary to process and collect
referred debts under this chapter. In no event shall the rate of the collection costs exceed
25 percent of the debt. Determination of the rate of collection costs under this section is
not subject to the fee setting requirements of section 16A.1283.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2012, section 84A.20, subdivision 2, is amended to read:

Subd. 2.

County proposal to state.

deleted text begin Under certain conditions, deleted text end The board of county
commissioners of any county may by resolution propose to the state that one or more
areas in the county be taken over by the state for afforestation, reforestation, flood control
projects, or other state purposes. The projects are to be managed, controlled, and used for
the purposes in subdivision 1 on lands to be acquired by the state within the projects, as set
forth in sections 84A.20 to 84A.30. The county board may propose this if deleted text begin (1) deleted text end the county
contains lands suitable for the purposes in subdivision 1 deleted text begin , (2) on January 1, 1931, the taxes
on more than 35 percent of the taxable land in the county are delinquent, (3) on January 1,
1931, the county's bonded ditch indebtedness, including accrued interest, equals or exceeds
nine percent of the assessed valuation of the county, exclusive of money and credits deleted text end .

The area taken over must include lands that have been assessed for all or part of
the cost of the establishment and construction of public drainage ditches under state law,
and on which the assessments or installments are delinquent. A certified copy of the
county board's resolution must be filed with the department and considered and acted
upon by the department. If approved by the department, it must then be submitted to,
considered, and acted upon by the executive council. If approved by the Executive
Council, the proposition must be formally accepted by the governor. Acceptance must be
communicated in writing to and filed with the county auditor.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2012, section 84A.31, subdivision 2, is amended to read:

Subd. 2.

County proposal to state.

deleted text begin Under certain conditions, deleted text end The board of county
commissioners of any county may by resolution propose that the state take over part of the
tax-delinquent lands in the county deleted text begin . The board may propose this deleted text end if deleted text begin :
deleted text end

deleted text begin (1) deleted text end the county contains land suitable for the purposes in subdivision 1 deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (2) on January 1, 1933, the taxes on more than 25 percent of the acreage of the lands
in a town in the county are delinquent, as shown by its tax books;
deleted text end

deleted text begin (3) on January 1, 1933, the taxes or ditch assessments on more than 50 percent of the
acreage of the lands to be taken over are delinquent, as shown by the county's tax books; and
deleted text end

deleted text begin (4) on January 1, 1933, the bonded ditch indebtedness of the county equals or
exceeds 15 percent of the assessed value of the county for 1932 as fixed by the Minnesota
Tax Commission, exclusive of money and credits.
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. 11.

Minnesota Statutes 2012, section 115B.49, subdivision 4, is amended to read:

Subd. 4.

Registration; fees.

(a) The owner or operator of a dry cleaning facility
shall register on or before October 1 of each year with the commissioner of revenue in
a manner prescribed by the commissioner of revenue and pay a registration fee for the
facility. The amount of the fee is:

(1) $500, for facilities with a full-time equivalence of fewer than five;

(2) $1,000, for facilities with a full-time equivalence of five to ten; and

(3) $1,500, for facilities with a full-time equivalence of more than ten.

The registration fee must be paid on or before October 18 or the owner or operator
of a dry cleaning facility may elect to pay the fee in equal installments. Installment
payments must be paid on or before October 18, on or before January 18, on or before
April 18, and on or before June 18. All payments made after October 18 bear interest
at the rate specified in section 270C.40.

(b) A person who sells dry cleaning solvents for use by dry cleaning facilities in
the state shall collect and remit to the commissioner of revenue in deleted text begin a deleted text end new text begin the same new text end manner
prescribed by the commissioner of revenue, deleted text begin on or before the 20th day of the month
following the month in which the sales of dry cleaning solvents are made deleted text end new text begin for the taxes
imposed under chapter 297A new text end , a fee of:

(1) $3.50 for each gallon of perchloroethylene sold for use by dry cleaning facilities
in the state;

(2) 70 cents for each gallon of hydrocarbon-based dry cleaning solvent sold for use
by dry cleaning facilities in the state; and

(3) 35 cents for each gallon of other nonaqueous solvents sold for use by dry
cleaning facilities in the state.

(c) The audit, assessment, appeal, collection, enforcement, and administrative
provisions of chapters 270C and 289A apply to the fee imposed by this subdivision. To
enforce this subdivision, the commissioner of revenue may grant extensions to file returns
and pay fees, impose penalties and interest on the annual registration fee under paragraph
(a) and the monthly fee under paragraph (b), and abate penalties and interest in the manner
provided in chapters 270C and 289A. The penalties and interest imposed on taxes under
chapter 297A apply to the fees imposed under this subdivision. Disclosure of data collected
by the commissioner of revenue under this subdivision is governed by chapter 270B.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fees due after June 30, 2014.
new text end

Sec. 12.

Minnesota Statutes 2012, section 163.06, subdivision 1, is amended to read:

Subdivision 1.

Levy.

The county board of any county in which there are unorganized
townships may levy a tax for road and bridge purposes upon all the real and personal
property in such unorganized townships deleted text begin , exclusive of money and credits taxed under the
provisions of chapter 285 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. 13.

Minnesota Statutes 2012, section 270.11, subdivision 1, is amended to read:

Subdivision 1.

To act as State Board of Equalization.

The commissioner of
revenue shall have and exercise all the rights, powers and authority by law vested in the
State Board of Equalization deleted text begin , which board of equalization is hereby continued, deleted text end with full
power and authority to review, modify, and revise all of the acts and proceedings of the
commissioner in so far as they relate to the equalization and valuation of property assessed
for taxation, as prescribed by section 270.12.

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 2012, section 270.12, subdivision 2, is amended to read:

Subd. 2.

Meeting dates; duties.

The board shall meet annually between April 15
and June 30 at the office of the commissioner of revenue and examine and compare the
returns of the assessment of the property in the several counties, and equalize the same so
that all the taxable property in the state shall be assessed at its market value, subject to
the following rules:

(1) The board shall add to new text begin or deduct from new text end the aggregate valuation of the real property
of every county, which the board believes to be valued below new text begin or above new text end its market value in
money, such percent as will bring the same to its market value deleted text begin in money deleted text end ;

deleted text begin (2) The board shall deduct from the aggregate valuation of the real property of every
county, which the board believes to be valued above its market value in money, such
percent as will reduce the same to its market value in money;
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end If the board believes the valuation for a part of a class determined by a range
of market value under clause deleted text begin (8) deleted text end new text begin (6) new text end or otherwise, a class, or classes of the real property of
any town or district in any county, or the valuation for a part of a class, a class, or classes
of the real property of any county not in towns or cities, should be raised or reduced,
without raising or reducing the other real property of such county, or without raising or
reducing it in the same ratio, the board may add to, or take from, the valuation of a part of
a class, a class, or classes in any one or more of such towns or cities, or of the property not
in towns or cities, such percent as the board believes will raise or reduce the same to its
market value deleted text begin in money deleted text end ;

deleted text begin (4) deleted text end new text begin (3) new text end The board shall add to new text begin or take from new text end the aggregate valuation of any part of a
class, a class, or classes of personal property of any county, town, or city, which the
board believes to be valued below new text begin or above new text end the market value thereof, such percent as will
raise the same to its market value deleted text begin in money deleted text end ;

deleted text begin (5) The board shall take from the aggregate valuation of any part of a class, a class,
or classes of personal property in any county, town or city, which the board believes to
be valued above the market value thereof, such percent as will reduce the same to its
market value in money;
deleted text end

deleted text begin (6) deleted text end new text begin (4) new text end The board shall not reduce the aggregate valuation of all the property of the
state, as returned by the several county auditors, more than one percent on the whole
valuation thereof;

deleted text begin (7) deleted text end new text begin (5) new text end When it would be of assistance in equalizing values the board may require any
county auditor to furnish statements showing assessments of real and personal property
of any individuals, firms, or corporations within the county. The board shall consider
and equalize such assessments and may increase the assessment of individuals, firms, or
corporations above the amount returned by the county board of equalization when it shall
appear to be undervalued, first giving notice to such persons of the intention of the board
so to do, which notice shall fix a time and place of hearing. The board shall not decrease
any such assessment below the valuation placed by the county board of equalization;

deleted text begin (8) deleted text end new text begin (6) new text end In equalizing values pursuant to this section, the board shall utilize a 12-month
assessment/sales ratio study conducted by the Department of Revenue containing only
sales that are filed in the county auditor's office under section 272.115, by November 1 of
the previous year and that occurred between October 1 of the year immediately preceding
the previous year and September 30 of the previous year.

The assessment/sales ratio study may separate the values of residential property
into market value categories. The board may adjust the market value categories and the
number of categories as necessary to create an adequate sample size for each market value
category. The board may determine the adequate sample size. To the extent practicable,
the methodology used in preparing the assessment/sales ratio study must be consistent
with the most recent Standard on Assessment Sales Ratio Studies published by the
Assessment Standards Committee of the International Association of Assessing Officers.
The board may determine the geographic area used in preparing the study to accurately
equalize values. A sales ratio study separating residential property into market value
categories may not be used as the basis for a petition under chapter 278.

The sales prices used in the study must be discounted for terms of financing. The
board shall use the median ratio as the statistical measure of the level of assessment for
any particular category of property; and

deleted text begin (9) deleted text end new text begin (7) new text end The board shall receive from each county the estimated market values on the
assessment date falling within the study period for all parcels by deleted text begin magnetic tape or other deleted text end new text begin a
new text end medium as prescribed by the commissioner of revenue.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2012, section 270.12, subdivision 4, is amended to read:

Subd. 4.

Public utility property.

For purposes of equalization only, public utility
personal property shall be treated as a separate class of property deleted text begin notwithstanding the fact
that its class rate is the same as commercial-industrial property 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. 16.

Minnesota Statutes 2012, section 270A.03, subdivision 2, is amended to read:

Subd. 2.

Claimant agency.

"Claimant agency" means any state agency, as defined
by section 14.02, subdivision 2, the regents of the University of Minnesota, any district
court of the state, any county, any statutory or home rule charter city, including a city that
is presenting a claim for a municipal hospital or a public library or a municipal ambulance
service, a hospital district, a private nonprofit hospital that leases its building from the
county or city in which it is located, any ambulance service licensed under chapter 144E,
any public agency responsible for child support enforcement, any public agency responsible
for the collection of court-ordered restitution, and any public agency established by
general or special law that is responsible for the administration of a low-income housing
program deleted text begin , and the Minnesota collection enterprise as defined in section 16D.02, subdivision
8, for the purpose of collecting the costs imposed under section 16D.11 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 2012, section 270B.14, subdivision 3, is amended to read:

Subd. 3.

Administration of enterprise deleted text begin , deleted text end new text begin and new text end job opportunity deleted text begin , and biotechnology
and health sciences industry zone deleted text end programs.

The commissioner may disclose return
information relating to the taxes imposed by chapters 290 and 297A to the Department of
Employment and Economic Development or a municipality with a border city enterprise
zone as defined under section 469.166, but only as necessary to administer the funding
limitations under section 469.169, or to the Department of Employment and Economic
Development and appropriate officials from the local government units in which a
qualified business is located but only as necessary to enforce the job opportunity building
zone benefits under section 469.315 deleted text begin , or biotechnology and health sciences industry zone
benefits under section 469.336 deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016.
new text end

Sec. 18.

Minnesota Statutes 2012, section 270C.085, is amended to read:

270C.085 NOTIFICATION REQUIREMENTS; SALES AND USE TAXES.

The commissioner of revenue shall establish a means of electronically notifying
persons holding a sales tax permit under section 297A.84 of any statutory change in
chapter 297A and any issuance or change in any administrative rule, revenue notice, or
sales tax fact sheet or other written information provided by the department explaining the
interpretation or administration of the tax imposed under that chapter. The notification
must indicate the basic subject of the statute, rule, fact sheet, or other material and provide
an electronic link to the material. Any person holding a sales tax permit that provides
an electronic address to the department must receive these notifications unless they
specifically request electronically, or in writing, to be removed from the notification list.
This requirement does not replace traditional means of notifying the general public or
persons without access to electronic communications of changes in the sales tax law. deleted text begin The
electronic notification must begin no later than December 31, 2009.
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. 19.

Minnesota Statutes 2012, section 270C.52, subdivision 2, is amended to read:

Subd. 2.

Payment agreements.

(a) When any portion of any tax payable to the
commissioner together with interest and penalty thereon, if any, has not been paid, the
commissioner may extend the time for payment for a further period. When the authority
of this section is invoked, the extension shall be evidenced by written agreement signed by
the taxpayer and the commissioner, stating the amount of the tax with penalty and interest,
if any, and providing for the payment of the amount in installments.

(b) The agreement may contain a confession of judgment for the amount and for any
unpaid portion thereof. If the agreement contains a confession of judgment, the confession
of judgment must provide that the commissioner may enter judgment against the taxpayer
in the district court of the county of residence as shown upon the taxpayer's tax return for
the unpaid portion of the amount specified in the extension agreement.

(c) The agreement shall provide that it can be terminated, after notice by the
commissioner, if information provided by the taxpayer prior to the agreement was
inaccurate or incomplete, collection of the tax covered by the agreement is in jeopardy,
there is a subsequent change in the taxpayer's financial condition, the taxpayer has failed
to make a payment due under the agreement, or the taxpayer has failed to pay any other
tax or file a tax return coming due after the agreement.

(d) The notice must be given at least 14 calendar days prior to termination, and shall
advise the taxpayer of the right to request a reconsideration from the commissioner of
whether termination is reasonable and appropriate under the circumstances. A request for
reconsideration does not stay collection action beyond the 14-day notice period. If the
commissioner has reason to believe that collection of the tax covered by the agreement
is in jeopardy, the commissioner may proceed under section 270C.36 and terminate the
agreement without regard to the 14-day period.

(e) The commissioner may accept other collateral the commissioner considers
appropriate to secure satisfaction of the tax liability. The principal sum specified in the
agreement shall bear interest at the rate specified in section 270C.40 on all unpaid portions
thereof until the same has been fully paid or the unpaid portion thereof has been entered as
a judgment. The judgment shall bear interest at the rate specified in section 270C.40.

(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess
of the amount actually owing by the taxpayer, the extension agreement or the judgment
entered pursuant thereto shall be corrected. If after making the extension agreement
or entering judgment with respect thereto, the commissioner determines that the tax as
reported by the taxpayer is less than the amount actually due, the commissioner shall
assess a further tax in accordance with the provisions of law applicable to the tax.

(g) The authority granted to the commissioner by this section is in addition to any
other authority granted to the commissioner by law to extend the time of payment or the
time for filing a return and shall not be construed in limitation thereof.

(h) The commissioner shall charge a fee for entering into payment agreements deleted text begin that
reflects the commissioner's costs for entering into payment agreements deleted text end . The fee is set at
$50 and is charged for entering into a payment agreement, for entering into a new payment
agreement after the taxpayer has defaulted on a prior agreement, and for entering into a
new payment agreement as a result of renegotiation of the terms of an existing agreement.
The fee is paid to the commissioner before the payment agreement becomes effective and
does not reduce the amount of the liability.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2012, section 272.01, subdivision 1, is amended to read:

Subdivision 1.

Generally taxable.

All real and personal property in this state deleted text begin , and
all personal property of persons residing therein, including the property of corporations,
banks, banking companies, and bankers, deleted text end is taxable, except Indian lands and such other
property as is by law exempt from taxation.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2012, section 272.01, subdivision 3, is amended to read:

Subd. 3.

Exceptions.

The provisions of subdivision 2 shall not apply to:

(a) Federal property for which payments are made in lieu of taxes in amounts
equivalent to taxes which might otherwise be lawfully assessed;

(b) Real estate exempt from ad valorem taxes and taxes in lieu thereof which is
leased, loaned, or otherwise made available to telephone companies or electric, light
and power companies upon which personal property consisting of transmission and
distribution lines is situated and assessed pursuant to sections 273.37, 273.38, 273.40
and 273.41, or upon which are situated the communication lines of express, railway, new text begin or
new text end telephone deleted text begin or telegraph deleted text end companies, or pipelines used for the transmission and distribution
of petroleum products, or the equipment items of a cable communications company
subject to sections 238.35 to 238.42;

(c) Property presently owned by any educational institution chartered by the
territorial legislature;

(d) Indian lands;

(e) Property of any corporation organized as a tribal corporation under the Indian
Reorganization Act of June 18, 1934, (Statutes at Large, volume 48, page 984);

(f) Real property owned by the state and leased pursuant to section 161.23 or
161.431, and acts amendatory thereto;

(g) Real property owned by a seaway port authority on June 1, 1967, upon which
there has been constructed docks, warehouses, tank farms, administrative and maintenance
buildings, railroad and ship terminal facilities and other maritime and transportation
facilities or those directly related thereto, together with facilities for the handling of
passengers and baggage and for the handling of freight and bulk liquids, and personal
property owned by a seaway port authority used or usable in connection therewith, when
said property is leased to a private individual, association or corporation, but only when
such lease provides that the said facilities are available to the public for the loading and
unloading of passengers and their baggage and the handling, storage, care, shipment,
and delivery of merchandise, freight and baggage and other maritime and transportation
activities and functions directly related thereto, but not including property used for grain
elevator facilities; it being the declared policy of this state that such property when
so leased is public property used exclusively for a public purpose, notwithstanding the
one-year limitation in the provisions of section 273.19;

(h) Notwithstanding the provisions of clause (g), when the annual rental received by
a seaway port authority in any calendar year for such leased property exceeds an amount
reasonably required for administrative expense of the authority per year, plus promotional
expense for the authority not to exceed the sum of $100,000 per year, to be expended
when and in the manner decided upon by the commissioners, plus an amount sufficient to
pay all installments of principal and interest due, or to become due, during such calendar
year and the next succeeding year on any revenue bonds issued by the authority, plus
25 percent of the gross annual rental to be retained by the authority for improvement,
development, or other contingencies, the authority shall make a payment in lieu of real
and personal property taxes of a reasonable portion of the remaining annual rental to the
county treasurer of the county in which such seaway port authority is principally located.
Any such payments to the county treasurer shall be disbursed by the treasurer on the same
basis as real estate taxes are divided among the various governmental units, but if such
port authority shall have received funds from the state of Minnesota and funds from any
city and county pursuant to Laws 1957, chapters 648, 831, and 849 and acts amendatory
thereof, then such disbursement by the county treasurer shall be on the same basis as real
estate taxes are divided among the various governmental units, except that the portion of
such payments which would otherwise go to other taxing units shall be divided equally
among the state of Minnesota and said county and city.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2012, section 272.025, subdivision 1, is amended to read:

Subdivision 1.

Statement of exemption.

(a) Except in the case of property owned
by the state of Minnesota or any political subdivision thereof, and property exempt from
taxation under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the
times provided in subdivision 3, a taxpayer claiming an exemption from taxation on
property described in section 272.02, subdivisions deleted text begin 1 deleted text end new text begin 2 new text end to 33, must file a statement of
exemption with the assessor of the assessment district in which the property is located.

(b) A taxpayer claiming an exemption from taxation on property described in section
272.02, subdivision 10, must file a statement of exemption with the commissioner of
revenue, on or before February 15 of each year for which the taxpayer claims an exemption.

(c) In case of sickness, absence or other disability or for good cause, the assessor
or the commissioner may extend the time for filing the statement of exemption for a
period not to exceed 60 days.

(d) The commissioner of revenue shall prescribe the form and contents of the
statement of exemption.

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2012, section 272.027, subdivision 1, is amended to read:

Subdivision 1.

Electricity generated to produce goods and services.

Personal
property used to generate electric power is exempt from property taxation if the electric
power is used to manufacture or produce goods, products, or services, other than electric
power, by the owner of the electric generation plant. deleted text begin Except as provided in subdivisions 2
and 3, deleted text end The exemption does not apply to property used to produce electric power for sale
to others and does not apply to real property. In determining the value subject to tax,
a proportionate share of the value of the generating facilities, equal to the proportion
that the power sold to others bears to the total generation of the plant, is subject to the
general property tax in the same manner as other property. Power generated in such a
plant and exchanged for an equivalent amount of power that is used for the manufacture or
production of goods, products, or services other than electric power by the owner of the
generating plant is considered to be used by the owner of the plant.

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2012, section 272.029, subdivision 6, is amended to read:

Subd. 6.

Distribution of revenues.

Revenues from the taxes imposed under
subdivision 5 must be part of the settlement between the county treasurer and the county
auditor under section 276.09. The revenue must be distributed by the county auditor or the
county treasurer to local taxing jurisdictions in which the wind energy conversion system
is located as follows: deleted text begin beginning with distributions in 2010, deleted text end 80 percent to counties deleted text begin ; deleted text end and 20
percent to cities and townships deleted text begin ; and for distributions occurring in 2006 to 2009, 80 percent
to counties; 14 percent to cities and townships; and six percent to school districts 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. 25.

Minnesota Statutes 2013 Supplement, section 273.032, is amended to read:

273.032 MARKET VALUE DEFINITION.

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

(1) the market value exclusions under:

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

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

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

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

(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);

(vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family
caregiver);

(vii) section 273.13, subdivision 35 (homestead market value exclusion); or

(2) the deferment of value under:

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

deleted text begin (ii) the Aggregate Resource Preservation Law, section 273.1115;
deleted text end

deleted text begin (iii) deleted text end new text begin (ii) new text end the Minnesota Open Space Property Tax Law, section 273.112;

deleted text begin (iv) deleted text end new text begin (iii) new text end the rural preserves property tax program, section 273.114; or

deleted text begin (v) deleted text end new text begin (iv) new text end the Metropolitan Agricultural Preserves Act, section 473H.10; or

(3) the adjustments to tax capacity for:

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

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

(iii) powerline credit under section 273.425.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

Minnesota Statutes 2012, section 273.061, subdivision 6, is amended to read:

Subd. 6.

Salaries; expenses.

The salaries of the county assessor and assistants and
clerical help, shall be fixed by the board of county commissioners and shall be payable deleted text begin in
monthly installments deleted text end out of the general revenue fund of the county. deleted text begin In counties with a
population of less than 50,000 inhabitants, according to the then last preceding federal
census, the board of county commissioners shall not fix the salary of the county assessor at
an amount below the following schedule:
deleted text end

deleted text begin In counties with a population of less than 6,500, $5,900;
deleted text end

deleted text begin In counties with a population of 6,500 but less than 12,000, $6,200;
deleted text end

deleted text begin In counties with a population of 12,000 but less than 16,000, $6,500;
deleted text end

deleted text begin In counties with a population of 16,000 but less than 21,000, $6,700;
deleted text end

deleted text begin In counties with a population of 21,000 but less than 30,000, $6,900;
deleted text end

deleted text begin In counties with a population of 30,000 but less than 39,500, $7,100;
deleted text end

deleted text begin In counties with a population of 39,500 but less than 50,000, $7,300;
deleted text end

deleted text begin In counties with a population of 50,000 or more, $8,300.
deleted text end

In addition to their salaries, the county assessor and assistants shall be allowed their
expenses for reasonable and necessary travel in the performance of their duties, including
necessary travel, lodging and meal expense incurred by them while attending meetings of
instructions or official hearings called by the commissioner of revenue. These expenses
shall be payable out of the general revenue fund of the county, and shall be allowed on the
same basis as such expenses are allowed to other county officers.

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2012, section 273.10, is amended to read:

273.10 SCHOOL DISTRICTS.

When assessing personal property the county assessor shall designate the number of
the school district in which each person assessed is liable for tax deleted text begin , by writing the number
of the district opposite each assessment in a column provided for that purpose in the
assessment book deleted text end . When the personal property of any person is assessable in several
school districts, the amount in each shall be assessed separately, and the name of the
owner placed opposite each amount.

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2012, section 273.11, subdivision 13, is amended to read:

Subd. 13.

Valuation of income-producing property.

deleted text begin Beginning with the 1995
assessment, deleted text end Only accredited assessors or senior accredited assessors or other licensed
assessors who have successfully completed at least two income-producing property
appraisal courses may value income-producing property for ad valorem tax purposes.
"Income-producing property" as used in this subdivision means the taxable property in
class 3a and 3b in section 273.13, subdivision 24; class 4a and 4c, except for seasonal
recreational property not used for commercial purposes; and class 5 in section 273.13,
subdivision 31. "Income-producing property" includes any property in class 4e in section
273.13, subdivision 25, that would be income-producing property under the definition in
this subdivision if it were not substandard. "Income-producing property appraisal course"
as used in this subdivision means a course of study of approximately 30 instructional
hours, with a final comprehensive test. An assessor must successfully complete the final
examination for each of the two required courses. The course must be approved by the
board of assessors.

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

Minnesota Statutes 2012, section 273.112, subdivision 6a, is amended to read:

Subd. 6a.

Guidelines issued by commissioner.

The commissioner of revenue shall
develop and issue guidelines for qualification by private golf clubs under this section
covering the access to and use of the golf course by members and other adults so as to be
consistent with the purposes and terms of this section. deleted text begin The guidelines shall be mailed to
the county attorney and assessor of each county not later than 60 days following May 26,
1989. Within 15 days of receipt of the guidelines from the commissioner, the assessor
shall mail a copy of the guidelines to each golf club in the county.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2013 Supplement, 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 class 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 net class rate
of 0.5 percent of market value. The remaining property over the first tier has a class 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 net class 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. Class 2b property
has a net class 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 class 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
enrollment in 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
(i) under this subdivision for taxes payable in 2003 because of its enrollment in a
qualifying program and the land remains enrolled or (ii) in the year prior to its enrollment.
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; or

(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; 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.

"Contiguous acreage," for purposes of this paragraph, 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, fruit of all kinds, vegetables, forage, grains,
bees, and apiary products by the owner;

(2) fish bred for sale and consumption if the fish breeding 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 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 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
horticultural or nursery products does not qualify as an agricultural purpose.

(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 class 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.

deleted text begin (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 class 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:
deleted text end

deleted text begin (1) a legal description of the property;
deleted text end

deleted text begin (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;
deleted text end

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

deleted text begin (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.
deleted text end

deleted text begin 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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (o) deleted text end new text begin (m) new text end 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 for taxes payable in 2015.
new text end

Sec. 31.

Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 2,
is amended to read:

Subd. 2.

Methodology.

In making its annual assessment/sales ratio studies, the
Department of Revenue must use a methodology consistent with the most recent Standard
on Assessment Ratio Studies published by the assessment standards committee of the
International Association of Assessing Officers. The commissioner of revenue shall
supplement this general methodology with specific procedures necessary for execution of
the study in accordance with other Minnesota laws impacting the assessment/sales ratio
study. The commissioner shall document these specific procedures in writing and shall
publish the procedures in the State Register, but these procedures will not be considered
"rules" pursuant to the Minnesota Administrative Procedure Act. When property is sold and
the purchaser changes its use in a manner that would result in a change of classification of
the property, the assessment sales ratio study under this subdivision must take into account
that changed classification as soon as practicable. A change in status from homestead to
nonhomestead or from nonhomestead to homestead is not a change under this subdivision.
For purposes of this section, sections 270.12, subdivision 2, clause deleted text begin (8) deleted text end new text begin (6) new text end , and 278.05,
subdivision 4, the commissioner of revenue shall exclude from the assessment/sales ratio
study the sale of any nonagricultural property which does not contain an improvement,
if (1) the statutory basis on which the property's taxable value as most recently assessed
is less than market value as defined in section 273.11, or (2) the property has undergone
significant physical change or a change of use since the most recent assessment.

new text begin EFFECTIVE DATE. new text end

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

Sec. 32.

Minnesota Statutes 2012, section 273.18, is amended to read:

273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT
PROPERTY BY COUNTY AUDITORS.

(a) In every sixth year after the year deleted text begin 1926 deleted text end new text begin 2010 new text end , the county auditor shall enter deleted text begin , in
a separate place in the real estate assessment books, deleted text end the description of each tract of real
property exempt by law from taxation, with the name of the owner, deleted text begin if known, deleted text end and the
assessor shall value and assess the same in the same manner that other real property is
valued and assessed, and shall designate in each case the purpose for which the property is
used.

(b) For purposes of the apportionment of fire state aid under section 69.021,
subdivision 7, the county auditor shall include on the abstract of assessment of exempt real
property filed under this section, the total number of acres of all natural resources lands for
which in lieu payments are made under sections 477A.11 to 477A.14. The assessor shall
estimate its market value, provided that if the assessor is not able to estimate the market
value of the land on a per parcel basis, the assessor shall furnish the commissioner of
revenue with an estimate of the average value per acre of this land within the county.

new text begin EFFECTIVE DATE. new text end

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

Sec. 33.

Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:

Subdivision 1.

Ordinary board; meetings, deadlines, grievances.

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

Minnesota Statutes 2012, section 274.01, subdivision 2, is amended to read:

Subd. 2.

Special board; duties delegated.

The governing body of a city deleted text begin , including
a city whose charter provides for a board of equalization, deleted text end may appoint a special board of
review. The city may delegate to the special board of review all of the powers and duties
in subdivision 1. The special board of review shall serve at the direction and discretion
of the appointing body, subject to the restrictions imposed by law. The appointing body
shall determine the number of members of the board, the compensation and expenses to be
paid, and the term of office of each member. At least one member of the special board
of review must be an appraiser, realtor, or other person familiar with property valuations
in the assessment district.

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

Minnesota Statutes 2012, section 275.08, subdivision 1a, is amended to read:

Subd. 1a.

Computation of tax capacity.

deleted text begin For taxes payable in 1989, the county
auditor shall compute the gross tax capacity for each parcel according to the class rates
specified in section 273.13. The gross tax capacity will be the appropriate class rate
multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years,
deleted text end The county auditor shall compute the net tax capacity for each parcel according to the
class rates specified in section 273.13. The net tax capacity will be the appropriate class
rate multiplied by the parcel's market value.

new text begin EFFECTIVE DATE. new text end

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

Sec. 36.

Minnesota Statutes 2012, section 275.08, subdivision 1d, is amended to read:

Subd. 1d.

Additional adjustment.

If, after computing each local government's
adjusted local tax rate within a unique taxing jurisdiction pursuant to subdivision 1c, the
auditor finds that the total adjusted local tax rate of all local governments combined is
deleted text begin less than 90 percent of gross tax capacity for taxes payable in 1989 and deleted text end 90 percent of net
tax capacity deleted text begin for taxes payable in 1990 and thereafter deleted text end , the auditor shall increase each local
government's adjusted local tax rate proportionately so the total adjusted local tax rate of
all local governments combined equals 90 percent. The total amount of the increase in
tax resulting from the increased local tax rates must not exceed the amount of disparity
aid allocated to the unique taxing district under section 273.1398. The auditor shall
certify to the Department of Revenue the difference between the disparity aid originally
allocated under section 273.1398, subdivision 3, and the amount necessary to reduce
the total adjusted local tax rate of all local governments combined to 90 percent. Each
local government's disparity reduction aid payment under section 273.1398, subdivision
6, must be reduced accordingly.

new text begin EFFECTIVE DATE. new text end

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

Sec. 37.

Minnesota Statutes 2013 Supplement, section 275.70, subdivision 5, is
amended to read:

Subd. 5.

Special levies.

"Special levies" means those portions of ad valorem taxes
levied by a local governmental unit for the following purposes or in the following manner:

(1) to pay the costs of the principal and interest on bonded indebtedness or to
reimburse for the amount of liquor store revenues used to pay the principal and interest
due on municipal liquor store bonds in the year preceding the year for which the levy
limit is calculated;

(2) to pay the costs of principal and interest on certificates of indebtedness issued for
any corporate purpose except for the following:

(i) tax anticipation or aid anticipation certificates of indebtedness;

(ii) certificates of indebtedness issued under sections 298.28 and 298.282;

(iii) certificates of indebtedness used to fund current expenses or to pay the costs of
extraordinary expenditures that result from a public emergency; or

(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an
insufficiency in other revenue sources, provided that nothing in this subdivision limits the
special levy authorized under section 475.755;

(3) to provide for the bonded indebtedness portion of payments made to another
political subdivision of the state of Minnesota;

(4) to fund payments made to the Minnesota State Armory Building Commission
under section 193.145, subdivision 2, to retire the principal and interest on armory
construction bonds;

(5) property taxes approved by voters which are levied against the referendum
market value as provided under section 275.61;

(6) to fund matching requirements needed to qualify for federal or state grants or
programs to the extent that either (i) the matching requirement exceeds the matching
requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
exist prior to 2002;

(7) to pay the expenses reasonably and necessarily incurred in preparing for or
repairing the effects of natural disaster including the occurrence or threat of widespread
or severe damage, injury, or loss of life or property resulting from natural causes, in
accordance with standards formulated by the Emergency Services Division of the state
Department of Public Safety, as allowed by the commissioner of revenue under section
275.74, subdivision 2;

(8) pay amounts required to correct an error in the levy certified to the county
auditor by a city or county in a levy year, but only to the extent that when added to the
preceding year's levy it is not in excess of an applicable statutory, special law or charter
limitation, or the limitation imposed on the governmental subdivision by sections 275.70
to 275.74 in the preceding levy year;

(9) to pay an abatement under section 469.1815;

(10) to pay any costs attributable to increases in the employer contribution rates under
chapter 353, or locally administered pension plans, that are effective after June 30, 2001;

(11) to pay the operating or maintenance costs of a county jail as authorized in section
641.01 or 641.262, or of a correctional facility as defined in section 241.021, subdivision 1,
paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue
that the amount has been included in the county budget as a direct result of a rule, minimum
requirement, minimum standard, or directive of the Department of Corrections, or to pay
the operating or maintenance costs of a regional jail as authorized in section 641.262. For
purposes of this clause, a district court order is not a rule, minimum requirement, minimum
standard, or directive of the Department of Corrections. If the county utilizes this special
levy, except to pay operating or maintenance costs of a new regional jail facility under
sections 641.262 to 641.264 which will not replace an existing jail facility, any amount
levied by the county in the previous levy year for the purposes specified under this clause
and included in the county's previous year's levy limitation computed under section
275.71, shall be deducted from the levy limit base under section 275.71, subdivision 2,
when determining the county's current year levy limitation. The county shall provide the
necessary information to the commissioner of revenue for making this determination;

(12) to pay for operation of a lake improvement district, as authorized under section
103B.555. If the county utilizes this special levy, any amount levied by the county in the
previous levy year for the purposes specified under this clause and included in the county's
previous year's levy limitation computed under section 275.71 shall be deducted from
the levy limit base under section 275.71, subdivision 2, when determining the county's
current year levy limitation. The county shall provide the necessary information to the
commissioner of revenue for making this determination;

(13) to repay a state or federal loan used to fund the direct or indirect required
spending by the local government due to a state or federal transportation project or other
state or federal capital project. This authority may only be used if the project is not a
local government initiative;

deleted text begin (14) to pay for court administration costs as required under section 273.1398,
subdivision 4b, less the (i) county's share of transferred fines and fees collected by the
district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes
levied to pay for these costs in the year in which the court financing is transferred to the
state, the amount under this clause is limited to the amount of aid the county is certified to
receive under section 273.1398, subdivision 4a;
deleted text end

deleted text begin (15) deleted text end new text begin (14) new text end to fund a firefighters relief association as required under Laws 2013,
chapter 111, article 5, sections 31 to 42, to the extent that the required amount exceeds the
amount levied for this purpose in 2001;

deleted text begin (16) deleted text end new text begin (15) new text end for purposes of a storm sewer improvement district under section 444.20;

deleted text begin (17) deleted text end new text begin (16) new text end to pay for the maintenance and support of a city or county society for
the prevention of cruelty to animals under section 343.11, but not to exceed in any year
$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
recent federal census, whichever is greater. If the city or county uses this special levy, any
amount levied by the city or county in the previous levy year for the purposes specified
in this clause and included in the city's or county's previous year's levy limit computed
under section 275.71, must be deducted from the levy limit base under section 275.71,
subdivision 2, in determining the city's or county's current year levy limit;

deleted text begin (18) deleted text end new text begin (17) new text end for counties, to pay for the increase in their share of health and human
service costs caused by reductions in federal health and human services grants effective
after September 30, 2007;

deleted text begin (19) deleted text end new text begin (18) new text end for a city, for the costs reasonably and necessarily incurred for securing,
maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
the commissioner of revenue under section 275.74, subdivision 2. A city must have either
(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
the city or in a zip code area of the city that is at least 50 percent higher than the average
foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2,
to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
number of foreclosures, as indicated by sheriff sales records, divided by the number of
households in the city in 2007;

deleted text begin (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and
lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
to the Federal Highway Administration;
deleted text end

deleted text begin (21) deleted text end new text begin (19) new text end to pay costs attributable to wages and benefits for sheriff, police, and fire
personnel. If a local governmental unit did not use this special levy in the previous year its
levy limit base under section 275.71 shall be reduced by the amount equal to the amount it
levied for the purposes specified in this clause in the previous year;

deleted text begin (22) deleted text end new text begin (20) new text end an amount equal to any reductions in the certified aids or credit
reimbursements payable under sections 477A.011 to 477A.014, and section 273.1384,
due to unallotment under section 16A.152 or reductions under another provision of law.
The amount of the levy allowed under this clause for each year is limited to the amount
unallotted or reduced from the aids and credit reimbursements certified for payment in the
year following the calendar year in which the tax levy is certified unless the unallotment
or reduction amount is not known by September 1 of the levy certification year, and
the local government has not adjusted its levy under section 275.065, subdivision 6, or
275.07, subdivision 6, in which case that unallotment or reduction amount may be levied
in the following year;

deleted text begin (23) deleted text end new text begin (21) new text end to pay for the difference between one-half of the costs of confining sex
offenders undergoing the civil commitment process and any state payments for this
purpose pursuant to section 253D.12;

deleted text begin (24) deleted text end new text begin (22) new text end for a county to pay the costs of the first year of maintaining and operating
a new facility or new expansion, either of which contains courts, corrections, dispatch,
criminal investigation labs, or other public safety facilities and for which all or a portion
of the funding for the site acquisition, building design, site preparation, construction, and
related equipment was issued or authorized prior to the imposition of levy limits deleted text begin in 2008 deleted text end .
The levy limit base shall then be increased by an amount equal to the new facility's first
full year's operating costs as described in this clause; and

deleted text begin (25) deleted text end new text begin (23) new text end for the estimated amount of reduction to market value credit reimbursements
under section 273.1384 for credits payable in the year in which the levy is payable.

new text begin EFFECTIVE DATE. new text end

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

Sec. 38.

Minnesota Statutes 2012, section 275.74, subdivision 2, is amended to read:

Subd. 2.

Authorization for special levies.

(a) A local governmental unit may
request authorization to levy for unreimbursed costs for natural disasters under section
275.70, subdivision 5, clause (7). The local governmental unit shall submit a request to
levy under section 275.70, subdivision 5, clause (7), to the commissioner of revenue by
September 30 of the levy year and the request must include information documenting the
estimated unreimbursed costs. The commissioner of revenue may grant levy authority,
up to the amount requested based on the documentation submitted. All decisions of the
commissioner are final.

(b) A city may request authorization to levy for reasonable and necessary costs for
securing, maintaining, or demolishing foreclosed or abandoned residential properties under
section 275.70, subdivision 5, clause deleted text begin (19) deleted text end new text begin (18) new text end . The local governmental unit shall submit a
request to levy under section 275.70, subdivision 5, clause deleted text begin (19) deleted text end new text begin (18) new text end , to the commissioner
of revenue by September 30 of the levy year and the request must include information
documenting the estimated costs. For taxes payable in 2009, the amount may include
unanticipated costs incurred above the amount budgeted for these purposes in 2008. Costs
of securing foreclosed or abandoned residential properties include payment for police and
fire department services. The commissioner of revenue may grant levy authority, up to the
lesser of (1) the amount requested based on the documentation submitted, or (2) $3,000
multiplied by the number of foreclosed residential properties, as defined by sheriff sales
records, in calendar year 2007. All decisions of the commissioner are final.

new text begin EFFECTIVE DATE. new text end

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

Sec. 39.

Minnesota Statutes 2012, section 275.75, is amended to read:

275.75 CHARTER EXEMPTION FOR AID LOSS.

Notwithstanding any other provision of a municipal charter that limits ad valorem
taxes to a lesser amount, or that would require voter approval for any increase, the
governing body of a municipality may by resolution increase its levy in any year by an
amount equal to its special levies under section 275.70, subdivision 5, clauses deleted text begin (22) and
(25) deleted text end new text begin (20) and (23) 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. 40.

Minnesota Statutes 2012, section 279.03, is amended to read:

279.03 INTEREST ON DELINQUENT PROPERTY TAXES.

Subdivision 1.

deleted text begin Rate deleted text end new text begin Interest calculation new text end .

deleted text begin The rate of interest on delinquent
property taxes levied in 1979 and prior years is fixed at six percent per year until January
1, 1983. Thereafter Interest is payable at the rate determined pursuant to section 549.09.
The rate of interest on delinquent property taxes levied in 1980 and subsequent years is
the rate determined pursuant to section 549.09. All provisions of law except section
549.09 providing for the calculation of interest at any different rate on delinquent taxes in
any notice or proceeding in connection with the payment, collection, sale, or assignment
of delinquent taxes, or redemption from such sale or assignment are hereby amended
to correspond herewith. deleted text end Section 549.09 deleted text begin shall continue in force deleted text end new text begin applies new text end with respect to
judgments arising out of petitions for review filed pursuant to chapter 278 deleted text begin irrespective of
the levy year deleted text end .

deleted text begin For property taxes levied in 1980 and prior years, interest is to be calculated at
simple interest from the second Monday in May following the year in which the taxes
become due until the time that the taxes and penalties are paid, computed on the amount
of unpaid taxes, penalties and costs. For property taxes levied in 1981 and subsequent
years, deleted text end Interest shall commence on the first day of January following the year in which the
taxes become due, but the county treasurer need not calculate interest on unpaid taxes and
penalties on the tax list returned to the county auditor pursuant to section 279.01.

If interest is payable for a portion of a year, the interest is calculated only for the
months that the taxes or penalties remain unpaid, and for this purpose a portion of a month
is deemed to be a whole month.

Subd. 1a.

Rate deleted text begin after December 31, 1990 deleted text end .

(a) Except as provided in paragraph (b),
interest on delinquent property taxes, penalties, and costs unpaid on or after January 1 deleted text begin ,
deleted text end deleted text begin 1991, shall be deleted text end new text begin is new text end payable at the per annum rate determined in section 270C.40, subdivision
5. If the rate so determined is less than ten percent, the rate of interest deleted text begin shall be deleted text end new text begin is new text end ten
percent. The maximum per annum rate deleted text begin shall be deleted text end new text begin is new text end 14 percent if the rate specified under
section 270C.40, subdivision 5, exceeds 14 percent. The rate deleted text begin shall be deleted text end new text begin is new text end subject to change
on January 1 of each year.

(b) If a person is the owner of one or more parcels of property on which taxes are
delinquent, and the delinquent taxes are more than 25 percent of the prior year's school
district levy, interest on the delinquent property taxes, penalties, and costs unpaid deleted text begin after
January 1, 1992, shall be deleted text end new text begin is new text end payable at twice the rate determined under paragraph (a) for
the year.

Subd. 2.

Composite judgment.

Amounts included in composite judgments
authorized by section 279.37, subdivision 1, and confessed deleted text begin on or after July 1, 1982, are
subject to interest at the rate determined pursuant to section 549.09. Amounts confessed
deleted text end under this authority deleted text begin after December 31, 1990, deleted text end are subject to interest at the rate calculated
under subdivision 1a. During each calendar year, interest deleted text begin shall accrue deleted text end new text begin accrues new text end on the
unpaid balance of the composite judgment from the time it is confessed until it is paid.
The rate of interest is subject to change each year in the same manner deleted text begin that section 549.09
or deleted text end new text begin as provided in new text end subdivision 1a deleted text begin , whichever is applicable, for rate changes deleted text end . deleted text begin Interest on the
unpaid contract balance on judgments confessed before July 1, 1982, is payable at the rate
applicable to the judgment at the time that it was confessed 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. 41.

Minnesota Statutes 2012, section 279.16, is amended to read:

279.16 JUDGMENT WHEN NO ANSWER; FORM; ENTRY.

Upon the expiration of 20 days from the later of the filing of the affidavit of
publication or the filing of the affidavit of mailing pursuant to section 279.131, the
court administrator shall enter judgment against each and every such parcel as to which
no answer has been filed, which judgment shall include all such parcels, and shall be
substantially in the following form:

State of Minnesota	)	District Court,
	) ss.
County of .	)	.............. Judicial District.

In the matter of the proceedings to enforce payment of the taxes on real estate
remaining delinquent on the first Monday in January, ......., for the county of ....................,
state of Minnesota.

A list of taxes on real property, delinquent on the first Monday in January, ......., for
said county of ................., having been duly filed in the office of the court administrator of
this court, and the notice and list required by law having been duly published and mailed
as required by law, and more than 20 days having elapsed since the last publication of the
notice and list, and no answer having been filed by any person, company, or corporation
to the taxes upon any of the parcels of land hereinafter described, it is hereby adjudged
that each parcel of land hereinafter described is liable for taxes, penalties, and costs to the
amount set opposite the same, as follows:

Description.

Parcel Number.

Amount.

The amount of taxes, penalties, and cost to which, as hereinbefore stated, each of
such parcels of land is liable, is hereby declared a lien upon such parcel of land as against
the estate, right, title, interest, claim, or lien, of whatever nature, in law or equity, of every
person, company, or corporation; and it is adjudged that, unless the amount to which
each of such parcels is liable be paid, each of such parcels be sold, as provided by law,
to satisfy the amount to which it is liable.

	Dated this ............. day of ..............., .......
	. Court Administrator of the District Court, County of .

The judgment shall be entered by the court administrator in a book to be kept by
the court administrator, to be called the real estate tax judgment book, and signed by the
court administrator. deleted text begin The judgment shall be written out on the left-hand pages of the book,
leaving the right-hand pages blank for the entries in this chapter hereinafter provided; and
deleted text end The same presumption in favor of the regularity and validity of the judgment shall be
deemed to exist as in respect to judgments in civil actions in such court, except where taxes
have been paid before the entry of judgment, or where the land is exempt from taxation, in
which cases the judgment shall be prima facie evidence only of its regularity and validity.

new text begin EFFECTIVE DATE. new text end

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

Sec. 42.

Minnesota Statutes 2012, section 279.23, is amended to read:

279.23 COPY OF JUDGMENT TO COUNTY AUDITOR.

When any real estate tax judgment is entered, the court administrator shall deleted text begin forthwith
deleted text end deliver to the county auditor deleted text begin , in a book to be provided by the auditor, deleted text end a certified copy of
such judgment deleted text begin , which shall be written on the left-hand pages of the book, leaving the
right-hand pages blank 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. 43.

Minnesota Statutes 2012, section 279.25, is amended to read:

279.25 PAYMENT BEFORE JUDGMENT.

Before sale any person may pay the amount adjudged against any parcel of land.
If payment is made before entry of judgment, and the delinquent list has been filed with
the court administrator, the county auditor shall immediately certify such payment to the
court administrator, who shall note the same on such delinquent list; and all proceedings
pending against such parcel shall thereupon be discontinued. If payment is made after
judgment is entered and before sale, the auditor shall certify such payment to the clerk,
who, upon production of such certificate and the payment of a fee of ten cents, shall enter
deleted text begin on the right-hand page of the real estate tax judgment book, and opposite the description
of such parcel, deleted text end satisfaction of the judgment against the same. The auditor shall make
proper records of all payments made under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 44.

Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is
amended to read:

Subd. 2.

Installment payments.

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 deleted text begin Minnesota Statutes 1941, sections 278.01 to 278.13 deleted text end new text begin chapter 278 new text end , 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. 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 deleted text begin Minnesota Statutes, sections 278.01 to 278.13 deleted text end new text begin chapter 278 new text end .

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 45.

Minnesota Statutes 2012, section 280.001, is amended to read:

280.001 PUBLIC SALES, AUDITOR'S CERTIFICATES ABOLISHED.

deleted text begin Effective the second Monday in May 1974, and each year thereafter, deleted text end No parcel of
land against which judgment has been entered and remains unsatisfied for the taxes of
the preceding year or years may be sold at public vendue as provided in sections 280.01
and 280.02 by the county auditor but shall be treated in the same manner and regarded in
all respects as land bid in for the state by the auditor in the manner provided in section
280.02. No notice of sale required by section 280.01 shall be published or posted deleted text begin in 1974
and in years thereafter, deleted text end and no auditor's certificate authorized by section 280.03 shall be
issued deleted text begin on the second Monday in May 1974, or thereafter 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. 46.

Minnesota Statutes 2012, section 280.03, is amended to read:

280.03 CERTIFICATE OF SALE.

The county auditor shall execute to the purchaser of each parcel a certificate which
may be substantially in the following form:

"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that
at the sale of lands pursuant to the real estate tax judgment entered in the district court
in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the
payment of taxes delinquent on real estate for the years .........., for the county of ..........,
which sale was held at ..............., in said county of ........, on the ........ day of ........, .......,
the following described parcel of land, situate in said county of .........., state of Minnesota:
(insert description), was offered for sale to the bidder who should offer to pay the amount
for which the same was to be sold, at the lowest annual rate of interest on such amount;
and at said sale I did sell the said parcel of land to .......... for the sum of .......... dollars,
with interest at .......... percent per annum on such amount, that being the sum for which the
same was to be sold, and such rate of interest being the lowest rate percent per annum bid
on such sum; and, the sum having been paid, I do therefore, in consideration thereof, and
pursuant to the statute in such case made and provided, convey the said parcel of land, in
fee simple, subject to easements and restrictions of record at the date of the tax judgment
sale, including, but without limitation, permits for telephone deleted text begin , telegraph deleted text end and electric
power lines either by underground cable or conduit or otherwise, sewer and water lines,
highways, railroads, and pipe lines for gas, liquids, or solids in suspension, to said ..........,
and the heirs and assigns of ......., forever, subject to redemption as provided by law.

Witness my hand and official seal this ........ day of ........, ....... .

. County Auditor."

If the land shall not be redeemed as provided in chapter 281, such certificate shall
pass to the purchaser an estate therein, in fee simple, without any other act or deed
whatever subject to easements and restrictions of record at the date of the tax judgment
sale, including, but without limitation, permits for telephone deleted text begin , telegraph, deleted text end and electric
power lines either by underground cable or conduit or otherwise, sewer and water lines,
highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such certificate
may be recorded, after the time for redemption shall have expired, as other deeds of real
estate, and with like effect. If any purchaser at such sale shall purchase more than one
parcel, the auditor shall issue to the purchaser a certificate for each parcel so purchased.

new text begin EFFECTIVE DATE. new text end

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

Sec. 47.

Minnesota Statutes 2012, section 280.07, is amended to read:

280.07 ENTRIES deleted text begin IN JUDGMENT BOOKS deleted text end AFTER SALE.

Immediately after such sale the county auditor shall deleted text begin set out in the copy judgment
book deleted text end new text begin record new text end that all parcels were bid in for the state. The county auditor shall thereupon
deleted text begin deliver such book to deleted text end new text begin notify new text end the court administrator deleted text begin , who shall forthwith enter on the
right-hand page of the real estate tax judgment book, opposite the description of each
parcel sold, the words "bid in for the state," and thereupon redeliver the copy judgment
book to the auditor deleted text end . Upon redemption the auditor shall deleted text begin make a deleted text end note deleted text begin thereon in the copy
judgment book, opposite deleted text end the parcel redeemed.

new text begin EFFECTIVE DATE. new text end

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

Sec. 48.

Minnesota Statutes 2012, section 280.11, is amended to read:

280.11 LANDS BID IN FOR STATE.

At any time after any parcel of land has been bid in for the state, the same not having
been redeemed, the county auditor shall assign and convey the same, and all the right of
the state therein acquired at such sale, to any person who shall pay the amount for which
the same was bid in, with interest at the rate of 12 percent per annum, and the amount of
all subsequent delinquent taxes, penalties, costs, and interest at such rate upon the same
from the time when such taxes became delinquent. The county auditor shall execute to
such person a certificate for such parcel, which may be substantially in the following form:

"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that
at the sale of lands pursuant to the real estate tax judgment entered in the district court
in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the
payment of taxes delinquent upon real estate for the years .......... for the county of ..........,
which sale was held at .........., in said county of .........., on the .......... day of .........., .......,
the following described parcel of land, situate in said county of .........., state of Minnesota:
(insert description), was duly offered for sale; and, no one bidding upon such offer an
amount equal to that for which the parcel was subject to be sold, the same was then bid in
for the state at such amount, being the sum of .......... dollars; and the same still remaining
unredeemed, and on this day .......... having paid into the treasury of the county the amount
for which the same was so bid in, and all subsequent delinquent taxes, penalties, costs,
and interest, amounting in all to .......... dollars, therefore, in consideration thereof, and
pursuant to the statute in such case made and provided, I do hereby assign and convey this
parcel of land, in fee simple, subject to easements and restrictions of record at the date of
the tax judgment sale, including but without limitation, permits for telephone deleted text begin , telegraph,
deleted text end and electric power lines either by underground cable or conduit or otherwise, sewer and
water lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension,
with all the right, title and interest of the state acquired therein at such sale to .........., and
the heirs and assigns of ........, forever, subject to redemption as provided by law.

Witness my hand and official seal this .......... day of .........., .......

. County Auditor."

If the land shall not be redeemed, as provided in chapter 281, such certificate shall
pass to the purchaser or assignee an estate therein, in fee simple, without any other act
or deed whatever subject to easements and restrictions of record at the date of the tax
judgment sale, including, but without limitation, permits for telephone deleted text begin , telegraph deleted text end and
electric power lines either by underground cable or conduit or otherwise, sewer and water
lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such
certificate or conveyance may be recorded, after the time for redemption shall have
expired, as other deeds of real estate, and with like effect. No assignment of the right of
the state shall be given pursuant to this section deleted text begin after January 1, 1972 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. 49.

Minnesota Statutes 2012, section 281.03, is amended to read:

281.03 AUDITOR'S CERTIFICATE.

The county auditor shall certify to the amount due on such redemption, and, on
payment of the same to the county treasurer, shall make duplicate receipts for the certified
amount, describing the property redeemed, one of which shall be filed with the auditor.
Such receipts shall be governed by the provisions of this chapter regulating the payment
of current taxes and such payment shall have the effect to annul the sale. If the amount
certified by the auditor and received in payment for redemption be less than that required
by law, it shall not invalidate the redemption. On redemption being made, the auditor shall
deleted text begin enter upon the copy of the tax judgment book, opposite the description of deleted text end new text begin record new text end the
parcel new text begin as new text end redeemed deleted text begin , the word, "redeemed." deleted text end new text begin .
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. 50.

Minnesota Statutes 2013 Supplement, section 281.17, is amended to read:

281.17 PERIOD FOR REDEMPTION.

Except for properties for which the period of redemption has been limited under
sections 281.173 and 281.174, the following periods for redemption apply.

The period of redemption for all lands sold to the state at a tax judgment sale shall
be three years from the date of sale to the state of Minnesota.

The period of redemption for homesteaded lands as defined in section 273.13,
subdivision 22, located in a targeted neighborhood as defined in Laws 1987, chapter 386,
article 6, section 4, and sold to the state at a tax judgment sale is three years from the date
of sale. The period of redemption for all lands located in a targeted neighborhood as
defined in Laws 1987, chapter 386, article 6, section 4, except deleted text begin (1) deleted text end homesteaded lands as
defined in section 273.13, subdivision 22, deleted text begin and (2) for periods of redemption beginning
after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted
neighborhood on which a notice of lis pendens has been served, and sold to the state at a
tax judgment sale deleted text end is one year from the date of sale.

The period of redemption for all real property constituting a mixed municipal solid
waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is
one year from the date of the sale to the state of Minnesota.

new text begin EFFECTIVE DATE. new text end

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

Sec. 51.

Minnesota Statutes 2012, section 281.327, is amended to read:

281.327 CANCELLATION OF CERTIFICATE UPON JUDICIAL ORDER.

Upon the petition of any person interested in the land covered by a real estate tax
sale certificate, state assignment certificate, or forfeited tax sale certificate and, upon the
giving of such notice to the holder of such certificate as may be ordered, the district court,
in the proceedings resulting in the judgment upon which a real estate tax judgment sale
certificate, state assignment certificate, or forfeited tax sale certificate is based, may order
the cancellation of a real estate tax judgment sale certificate, state assignment certificate,
or forfeited tax sale certificate upon which notice of expiration of time of redemption
has been issued when the certificate or a deed issued thereon has not been recorded in
the office of the county recorder or filed in that of the registrar of titles, if the land is
registered, within seven years after the date of the issuance of such certificate; the county
auditor, on the filing of the order, shall deleted text begin make an entry in the proper copy real estate tax
judgment book, opposite the description of the land, "canceled by order of court" deleted text end new text begin record
the land as canceled by order of court new text end ; and the rights of the holder under the certificate
shall thereupon be terminated of record in the office of the county auditor.

new text begin EFFECTIVE DATE. new text end

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

Sec. 52.

Minnesota Statutes 2012, section 282.01, subdivision 6, is amended to read:

Subd. 6.

Duties of commissioner after sale.

When any sale has been made by the
county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to
the commissioner of revenue such information relating to such sale, on such forms as the
commissioner of revenue may prescribe as will enable the commissioner of revenue to
prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale
is on terms; and not later than October 31 of each year the county auditor shall submit
to the commissioner of revenue a statement of all instances wherein any payment of
principal, interest, or current taxes on lands held under certificate, due or to be paid during
the preceding calendar years, are still outstanding at the time such certificate is made.
When such statement shows that a purchaser or the purchaser's assignee is in default, the
commissioner of revenue may instruct the county board of the county in which the land is
located to cancel said certificate of sale in the manner provided by subdivision 5, provided
that upon recommendation of the county board, and where the circumstances are such
that the commissioner of revenue after investigation is satisfied that the purchaser has
made every effort reasonable to make payment of both the annual installment and said
taxes, and that there has been no willful neglect on the part of the purchaser in meeting
these obligations, then the commissioner of revenue may extend the time for the payment
for such period as the commissioner may deem warranted, not to exceed one year. On
payment in full of the purchase price, appropriate conveyance in fee, in such form as may
be prescribed by the attorney general, shall be issued by the commissioner of revenue,
which conveyance must be recorded by the county and shall have the force and effect of
a patent from the state subject to easements and restrictions of record at the date of the
tax judgment sale, including, but without limitation, permits for telephone deleted text begin , telegraph, deleted text end and
electric power lines either by underground cable or conduit or otherwise, sewer and water
lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension.

new text begin EFFECTIVE DATE. new text end

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

Sec. 53.

Minnesota Statutes 2012, section 282.04, subdivision 4, is amended to read:

Subd. 4.

Easements.

The county auditor, when and for such price and on such
terms and for such period as the county board prescribes, may grant easements or permits
on unsold tax-forfeited land for telephone deleted text begin , telegraph, deleted text end and electric power lines either by
underground cable or conduit or otherwise, sewer and water lines, highways, recreational
trails, railroads, and pipe lines for gas, liquids, or solids in suspension. Any such easement
or permit may be canceled by resolution of the county board after reasonable notice for
any substantial breach of its terms or if at any time its continuance will conflict with
public use of the land, or any part thereof, on which it is granted. Land affected by any
such easement or permit may be sold or leased for mineral or other legal purpose, but sale
or lease shall be subject to the easement or permit, and all rights granted by the easement
or permit shall be excepted from the conveyance or lease of the land and be reserved,
and may be canceled by the county board in the same manner and for the same reasons
as it could have been canceled before sale and in that case the rights granted thereby
shall vest in the state in trust as the land on which it was granted was held before sale or
lease. Any easement or permit granted before passage of Laws 1951, Chapter 203, may
be governed thereby if the holder thereof and county board so agree. Reasonable notice
as used in this subdivision, means a 90-day written notice addressed to the record owner
of the easement at the last known address, and upon cancellation the county board may
grant extensions of time to vacate the premises affected.

new text begin EFFECTIVE DATE. new text end

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

Sec. 54.

Minnesota Statutes 2012, section 282.261, subdivision 2, is amended to read:

Subd. 2.

Interest rate.

The unpaid balance on any repurchase contract approved
by the county board deleted text begin on or after July 1, 1982, deleted text end is subject to interest at the rate determined
deleted text begin pursuant to section 549.09. Repurchase contracts approved after December 31, 1990, are
subject to interest at the rate determined deleted text end in section 279.03, subdivision 1a. The interest
rate is subject to change each year on the unpaid balance in the manner provided for rate
changes in section deleted text begin 549.09 or deleted text end 279.03, subdivision 1a deleted text begin , whichever is applicable. Interest on
the unpaid contract balance on repurchases approved before July 1, 1982, is payable at the
rate applicable to the repurchase contract at the time that it was approved 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. 55.

Minnesota Statutes 2012, section 282.261, subdivision 4, is amended to read:

Subd. 4.

Service fee.

The county auditor may collect a service fee to cover
administrative costs as set by the county board for each repurchase application deleted text begin received
after July 1, 1985 deleted text end . The fee must be paid at the time of application and must be credited to
the county general revenue fund.

new text begin EFFECTIVE DATE. new text end

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

Sec. 56.

Minnesota Statutes 2012, section 282.261, subdivision 5, is amended to read:

Subd. 5.

County may impose conditions of repurchase.

The county auditor, after
receiving county board approval, may impose conditions on repurchase of tax-forfeited
lands limiting the use of the parcel subject to the repurchase, including, but not limited to,
environmental remediation action plan restrictions or covenants, or easements for lines or
equipment for telephone, deleted text begin telegraph, deleted text end electric power, or telecommunications.

new text begin EFFECTIVE DATE. new text end

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

Sec. 57.

Minnesota Statutes 2012, section 282.322, is amended to read:

282.322 FORFEITED LANDS LIST.

The county board of any county may deleted text begin at any time after the passage of Laws 1945,
chapter 296, deleted text end file a list of forfeited lands with the county auditor, if the board is of the
opinion that such lands may be acquired by the state or any municipal subdivision thereof
for public purposes. Upon the filing of such list the county auditor shall withhold said
lands from repurchase. If no proceeding shall be started to acquire such lands by the
state or some municipal subdivision thereof within one year after the filing of such list
the county board shall withdraw said list and thereafter the owner shall have one year in
which to repurchase deleted text begin as otherwise provided in Laws 1945, chapter 296 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. 58.

Minnesota Statutes 2012, section 287.30, is amended to read:

287.30 COUNTY TREASURER; DUTIES.

The deleted text begin care of documentary stamps entrusted to county treasurers and the deleted text end duties imposed
upon county treasurers by this chapter are within the duties of such office and are within
the coverage of any official bond delivered to the state, conditioned that any such officer
shall faithfully execute the duties of office. The county board may by resolution require
the county auditor to perform any duty imposed on the county treasurer under this chapter.

new text begin EFFECTIVE DATE. new text end

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

Sec. 59.

Minnesota Statutes 2012, section 289A.25, subdivision 1, is amended to read:

Subdivision 1.

Requirements to pay.

An individual, trust, S corporation, or
partnership must, when prescribed in subdivision 3, paragraph (b), make payments of
estimated tax. For individuals, the term "estimated tax" means the amount the taxpayer
estimates is the sum of the taxes imposed by chapter 290 for the taxable year. For trusts,
S corporations, and partnerships, the term estimated tax means the amount the taxpayer
estimates is the sum of the taxes for the taxable year imposed by chapter 290 and the
composite income tax imposed by section 289A.08, subdivision 7. If the individual is an
infant or incompetent person, the payments must be made by the individual's guardian. If
joint payments on estimated tax are made but a joint return is not made for the taxable
year, the estimated tax for that year may be treated as the estimated tax of either the
husband or the wife or may be divided between them.

deleted text begin Notwithstanding the provisions of this section, no payments of estimated tax are
required if the estimated tax, as defined in this subdivision, less the credits allowed against
the tax, is less than $500.
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. 60.

Minnesota Statutes 2012, section 290.01, subdivision 5, is amended to read:

Subd. 5.

Domestic corporation.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 61.

Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19d,
is amended to read:

Subd. 19d.

Corporations; modifications decreasing federal taxable income.

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

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

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

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

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

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

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

deleted text begin (5) deleted text end new text begin (4) new text end the deduction for capital losses pursuant to sections 1211 and 1212 of the
Internal Revenue Code, except that:

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

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

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

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

deleted text begin (6) deleted text end new text begin (5) new text end an amount for interest and expenses relating to income not taxable for federal
income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
291 of the Internal Revenue Code in computing federal taxable income;

deleted text begin (7) deleted text end new text begin (6) new text end in the case of mines, oil and gas wells, other natural deposits, and timber for
which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a
reasonable allowance for depletion based on actual cost. In the case of leases the deduction
must be apportioned between the lessor and lessee in accordance with rules prescribed
by the commissioner. In the case of property held in trust, the allowable deduction must
be apportioned between the income beneficiaries and the trustee in accordance with the
pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
of the trust's income allocable to each;

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

deleted text begin (9) deleted text end new text begin (8) new text end amounts included in federal taxable income that are due to refunds of
income, excise, or franchise taxes based on net income or related minimum taxes paid
by the corporation to Minnesota, another state, a political subdivision of another state,
the District of Columbia, or a foreign country or possession of the United States to the
extent that the taxes were added to federal taxable income under subdivision 19c, clause
(1), in a prior taxable year;

deleted text begin (10) deleted text end new text begin (9) new text end income or gains from the business of mining as defined in section 290.05,
subdivision 1, clause (a), that are not subject to Minnesota franchise tax;

deleted text begin (11) deleted text end new text begin (10) new text end the amount of disability access expenditures in the taxable year which are not
allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;

deleted text begin (12) deleted text end new text begin (11) new text end the amount of qualified research expenses not allowed for federal income
tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
that the amount exceeds the amount of the credit allowed under section 290.068;

deleted text begin (13) deleted text end new text begin (12) new text end the amount of salary expenses not allowed for federal income tax purposes
due to claiming the Indian employment credit under section 45A(a) of the Internal
Revenue Code;

deleted text begin (14) deleted text end new text begin (13) new text end any decrease in subpart F income, as defined in section 952(a) of the
Internal Revenue Code, for the taxable year when subpart F income is calculated without
regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;

deleted text begin (15) deleted text end new text begin (14) new text end in each of the five tax years immediately following the tax year in which
an addition is required under subdivision 19c, clause (12), an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
the amount of the addition made by the taxpayer under subdivision 19c, clause (12). The
resulting delayed depreciation cannot be less than zero;

deleted text begin (16) deleted text end new text begin (15) new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause (13), an amount equal to one-fifth of the
amount of the addition;

deleted text begin (17) deleted text end new text begin (16) new text end to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under subdivision 19c, clause (16); and

deleted text begin (18) deleted text end new text begin (17) new text end the amount of expenses not allowed for federal income tax purposes due
to claiming the railroad track maintenance credit under section 45G(a) of the Internal
Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 62.

Minnesota Statutes 2012, section 290.01, subdivision 19f, is amended to read:

Subd. 19f.

Basis modifications affecting gain or loss on disposition of property.

(a) For individuals, estates, and trusts, the basis of property is its adjusted basis for federal
income tax purposes except as set forth in paragraphs new text begin (e) and new text end (f) deleted text begin , (g), and (m) deleted text end . For
corporations, the basis of property is its adjusted basis for federal income tax purposes,
without regard to the time when the property became subject to tax under this chapter or to
whether out-of-state losses or items of tax preference with respect to the property were not
deductible under this chapter, except that the modifications to the basis for federal income
tax purposes set forth in paragraphs (b) to deleted text begin (j) deleted text end new text begin (i) new text end are allowed to corporations, and the
resulting modifications to federal taxable income must be made in the year in which gain
or loss on the sale or other disposition of property is recognized.

(b) The basis of property shall not be reduced to reflect federal investment tax credit.

(c) deleted text begin The basis of property subject to the accelerated cost recovery system under
section 168 of the Internal Revenue Code shall be modified to reflect the modifications in
depreciation with respect to the property provided for in subdivision 19e. For certified
pollution control facilities for which amortization deductions were elected under section
169 of the Internal Revenue Code of 1954, the basis of the property must be increased by
the amount of the amortization deduction not previously allowed under this chapter.
deleted text end

deleted text begin (d) deleted text end For property acquired before January 1, 1933, the basis for computing a gain is
the fair market value of the property as of that date. The basis for determining a loss is
the cost of the property to the taxpayer less any depreciation, amortization, or depletion,
actually sustained before that date. If the adjusted cost exceeds the fair market value of the
property, then the basis is the adjusted cost regardless of whether there is a gain or loss.

deleted text begin (e) deleted text end new text begin (d) new text end The basis is reduced by the allowance for amortization of bond premium if
an election to amortize was made pursuant to Minnesota Statutes 1986, section 290.09,
subdivision 13, and the allowance could have been deducted by the taxpayer under this
chapter during the period of the taxpayer's ownership of the property.

deleted text begin (f) deleted text end new text begin (e) new text end For assets placed in service before January 1, 1987, corporations, partnerships,
or individuals engaged in the business of mining ores other than iron ore or taconite
concentrates subject to the occupation tax under chapter 298 must use the occupation
tax basis of property used in that business.

deleted text begin (g) deleted text end new text begin (f) new text end For assets placed in service before January 1, 1990, corporations, partnerships,
or individuals engaged in the business of mining iron ore or taconite concentrates subject
to the occupation tax under chapter 298 must use the occupation tax basis of property
used in that business.

deleted text begin (h) deleted text end new text begin (g) new text end In applying the provisions of sections 301(c)(3)(B), 312(f) and (g), and
316(a)(1) of the Internal Revenue Code, the dates December 31, 1932, and January 1,
1933, shall be substituted for February 28, 1913, and March 1, 1913, respectively.

deleted text begin (i) deleted text end new text begin (h) new text end In applying the provisions of section 362(a) and (c) of the Internal Revenue
Code, the date December 31, 1956, shall be substituted for June 22, 1954.

deleted text begin (j) deleted text end new text begin (i) new text end The basis of property shall be increased by the amount of intangible drilling
costs not previously allowed due to differences between this chapter and the Internal
Revenue Code.

deleted text begin (k) deleted text end new text begin (j) new text end The adjusted basis of any corporate partner's interest in a partnership is
the same as the adjusted basis for federal income tax purposes modified as required to
reflect the basis modifications set forth in paragraphs (b) to deleted text begin (j) deleted text end new text begin (i) new text end . The adjusted basis
of a partnership in which the partner is an individual, estate, or trust is the same as the
adjusted basis for federal income tax purposes modified as required to reflect the basis
modifications set forth in paragraphs new text begin (e) and new text end (f) deleted text begin and (g) deleted text end .

deleted text begin (l) deleted text end new text begin (k) new text end The modifications contained in paragraphs (b) to deleted text begin (j) deleted text end new text begin (i) new text end also apply to the basis
of property that is determined by reference to the basis of the same property in the hands
of a different taxpayer or by reference to the basis of different property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 63.

Minnesota Statutes 2012, section 290.01, subdivision 29, is amended to read:

Subd. 29.

Taxable income.

The term "taxable income" means:

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

(2) for corporations, the taxable net income less

(i) the net operating loss deduction under section 290.095;

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

(iii) the exemption for operating in a job opportunity building zone under section
469.317 deleted text begin ; and deleted text end new text begin .
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
new text end

Sec. 64.

Minnesota Statutes 2012, section 290.015, subdivision 1, is amended to read:

Subdivision 1.

General rule.

(a) Except as provided in subdivision 3, a person
that conducts a trade or business that has a place of business in this state, regularly has
employees or independent contractors conducting business activities on its behalf in this
state, or owns or leases real property that is located in this state or tangible personal
property, including but not limited to mobile property, that is present in this state is subject
to the taxes imposed by this chapter.

(b) Except as provided in subdivision 3, a person that conducts a trade or business
not described in paragraph (a) is subject to the taxes imposed by this chapter if the trade
or business obtains or regularly solicits business from within this state, without regard
to physical presence in this state.

(c) For purposes of paragraph (b), business from within this state includes, but is
not limited to:

(1) sales of products or services of any kind or nature to customers in this state who
receive the product or service in this state;

(2) sales of services which are performed from outside this state but the services
are received in this state;

(3) transactions with customers in this state that involve intangible property and
result in receipts attributed to this state as provided in section 290.191, subdivision 5 or 6;

(4) leases of tangible personal property that is located in this state as defined in
section 290.191, subdivision 5, paragraph (g), or 6, paragraph (e); and

(5) sales and leases of real property located in this state.

(d) For purposes of paragraph (b), solicitation includes, but is not limited to:

(1) the distribution, by mail or otherwise, without regard to the state from which such
distribution originated or in which the materials were prepared, of catalogs, periodicals,
advertising flyers, or other written solicitations of business to customers in this state;

(2) display of advertisements on billboards or other outdoor advertising in this state;

(3) advertisements in newspapers published in this state;

(4) advertisements in trade journals or other periodicals, the circulation of which is
primarily within this state;

(5) advertisements in a Minnesota edition of a national or regional publication or a
limited regional edition of which this state is included of a broader regional or national
publication which are not placed in other geographically defined editions of the same issue
of the same publication;

(6) advertisements in regional or national publications in an edition which is not
by its contents geographically targeted to Minnesota, but which is sold over the counter
in Minnesota or by subscription to Minnesota residents;

(7) advertisements broadcast on a radio or television station located in Minnesota; or

(8) any other solicitation by deleted text begin telegraph, deleted text end telephone, computer database, cable, optic,
microwave, or other communication 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. 65.

Minnesota Statutes 2012, section 290.07, subdivision 1, is amended to read:

Subdivision 1.

Annual accounting period.

Net income and taxable net income
shall be computed upon the basis of the taxpayer's annual accounting period. If a taxpayer
has no annual accounting period, or has one other than a fiscal year, deleted text begin as heretofore defined,
deleted text end the net income and taxable net income shall be computed on the basis of the calendar year.
Taxpayers shall employ the same accounting period on which they report, or would be
required to report, their net income under the Internal Revenue Code. The commissioner
shall provide by rule for the determination of the accounting period for taxpayers who file
a combined report under section 290.17, subdivision 4, when members of the group use
different accounting periods for federal income tax purposes. deleted text begin Unless the taxpayer changes
its accounting period for federal purposes, the due date of the return is not changed.
deleted text end

deleted text begin A taxpayer may change accounting periods only with the consent of the
commissioner. In case of any such change, the taxpayer shall pay a tax for the period
not included in either the taxpayer's former or newly adopted taxable year, computed as
provided in section 290.32.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 66.

Minnesota Statutes 2012, section 290.07, subdivision 2, is amended to read:

Subd. 2.

Accounting methods.

Except as specifically provided to the contrary by
this chapter, net income and taxable net income shall be computed in accordance with
the method of accounting regularly employed in keeping the taxpayer's books. If no such
accounting system has been regularly employed, or if that employed does not clearly or
fairly reflect income or the income taxable under this chapter, the computation shall be
made in accordance with such method as in the opinion of the commissioner does clearly
and fairly reflect income and the income taxable under this chapter.

deleted text begin Except as otherwise expressly provided in this chapter, a taxpayer who changes the
method of accounting for regularly computing the taxpayer's income in keeping books
shall, before computing net income and taxable net income under the new method, secure
the consent of the commissioner.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 67.

Minnesota Statutes 2013 Supplement, section 290.0921, subdivision 3,
is amended to read:

Subd. 3.

Alternative minimum taxable income.

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

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

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

deleted text begin (2) deleted text end new text begin (1) new text end The portion of the depreciation deduction allowed for federal income tax
purposes under section 168(k) of the Internal Revenue Code that is required as an
addition under section 290.01, subdivision 19c, clause (12), is disallowed in determining
alternative minimum taxable income.

deleted text begin (3) deleted text end new text begin (2) new text end The subtraction for depreciation allowed under section 290.01, subdivision
19d, clause deleted text begin (15) deleted text end new text begin (14) new text end , is allowed as a depreciation deduction in determining alternative
minimum taxable income.

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

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

deleted text begin (6) deleted text end new text begin (5) new text end The tax preference for depletion under section 57(a)(1) of the Internal
Revenue Code does not apply.

deleted text begin (7) The tax preference for intangible drilling costs under section 57(a)(2) of the
Internal Revenue Code must be calculated without regard to subparagraph (E) and the
subtraction under section 290.01, subdivision 19d, clause (4).
deleted text end

deleted text begin (8) deleted text end new text begin (6) new text end The tax preference for tax exempt interest under section 57(a)(5) of the
Internal Revenue Code does not apply.

deleted text begin (9) deleted text end new text begin (7) new text end The tax preference for charitable contributions of appreciated property under
section 57(a)(6) of the Internal Revenue Code does not apply.

deleted text begin (10) For purposes of calculating the tax preference for accelerated depreciation or
amortization on certain property placed in service before January 1, 1987, under section
57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the
deduction allowed under section 290.01, subdivision 19e.
deleted text end

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

deleted text begin (11) deleted text end new text begin (8) new text end For purposes of calculating the adjustment for adjusted current earnings
in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
minimum taxable income as defined in this subdivision, determined without regard to the
adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.

deleted text begin (12) deleted text end new text begin (9) new text end For purposes of determining the amount of adjusted current earnings under
section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii) the
amount of refunds of income, excise, or franchise taxes subtracted as provided in section
290.01, subdivision 19d, clause (9).

deleted text begin (13) deleted text end new text begin (10) new text end Alternative minimum taxable income excludes the income from operating
in a job opportunity building zone as provided under section 469.317.

deleted text begin (14) Alternative minimum taxable income excludes the income from operating in a
biotechnology and health sciences industry zone as provided under section 469.337.
deleted text end

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

new text begin EFFECTIVE DATE. new text end

new text begin The amendments striking clauses (1), (7), and (10), and
the renumbering of clauses are effective for taxable years beginning after December
31, 2013. The amendment striking clause (14) is effective for taxable years beginning
after December 31, 2015.
new text end

Sec. 68.

Minnesota Statutes 2012, section 290.0922, subdivision 3, is amended to read:

Subd. 3.

Definitions.

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

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

(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section
290.191, subdivision 12, but does not include deleted text begin : (1) deleted text end the job opportunity building zone payroll
under section 469.310, subdivision 8, of a qualified business as defined under section
469.310, subdivision 11 deleted text begin , and (2) biotechnology and health sciences industry zone payrolls
under section 469.330, subdivision 8 deleted text end . Taxpayers who do not utilize payrolls to apportion
income shall nevertheless include Minnesota payrolls for purposes of this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
new text end

Sec. 69.

Minnesota Statutes 2012, section 290.095, subdivision 3, is amended to read:

Subd. 3.

Carryover.

(a) A net operating loss incurred deleted text begin in a deleted text end new text begin during the new text end taxable year deleted text begin :
(i) beginning after December 31, 1986, deleted text end shall be a net operating loss carryover to each of
the 15 taxable years following the taxable year of such loss deleted text begin ; (ii) beginning before January
1, 1987, shall be a net operating loss carryover to each of the five taxable years following
the taxable year of such loss subject to the provisions of Minnesota Statutes 1986, section
290.095; and (iii) beginning before January 1, 1987, shall be a net operating loss carryback
to each of the three taxable years preceding the loss year subject to the provisions of
Minnesota Statutes 1986, section 290.095 deleted text end .

(b) The entire amount of the net operating loss for any taxable year shall be carried to
the earliest of the taxable years to which such loss may be carried. The portion of such loss
which shall be carried to each of the other taxable years shall be the excess, if any, of the
amount of such loss over the sum of the taxable net income, adjusted by the modifications
specified in subdivision 4, for each of the taxable years to which such loss may be carried.

(c) Where a corporation apportions its income under the provisions of section
290.191, the net operating loss deduction incurred in any taxable year shall be allowed
to the extent of the apportionment ratio of the loss year.

(d) The provisions of sections 381, 382, and 384 of the Internal Revenue Code apply
to carryovers in certain corporate acquisitions and special limitations on net operating loss
carryovers. The limitation amount determined under section 382 shall be applied to net
income, before apportionment, in each post change year to which a loss is carried.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 70.

Minnesota Statutes 2013 Supplement, section 290.191, subdivision 5, is
amended to read:

Subd. 5.

Determination of sales factor.

For purposes of this section, the following
rules apply in determining the sales factor.

(a) The sales factor includes all sales, gross earnings, or receipts received in the
ordinary course of the business, except that the following types of income are not included
in the sales factor:

(1) interest;

(2) dividends;

(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;

(4) sales of property used in the trade or business, except sales of leased property of
a type which is regularly sold as well as leased; and

(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue
Code or sales of stock.

(b) Sales of tangible personal property are made within this state if the property is
received by a purchaser at a point within this state, deleted text begin and the taxpayer is taxable in this state,
deleted text end regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination
of the property.

(c) Tangible personal property delivered to a common or contract carrier or foreign
vessel for delivery to a purchaser in another state or nation is a sale in that state or nation,
regardless of f.o.b. point or other conditions of the sale.

(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine,
fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is
licensed by a state or political subdivision to resell this property only within the state of
ultimate destination, the sale is made in that state.

(e) Sales made by or through a corporation that is qualified as a domestic
international sales corporation under section 992 of the Internal Revenue Code are not
considered to have been made within this state.

(f) Sales, rents, royalties, and other income in connection with real property is
attributed to the state in which the property is located.

(g) Receipts from the lease or rental of tangible personal property, including finance
leases and true leases, must be attributed to this state if the property is located in this
state and to other states if the property is not located in this state. Receipts from the
lease or rental of moving property including, but not limited to, motor vehicles, rolling
stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts
factor to the extent that the property is used in this state. The extent of the use of moving
property is determined as follows:

(1) A motor vehicle is used wholly in the state in which it is registered.

(2) The extent that rolling stock is used in this state is determined by multiplying
the receipts from the lease or rental of the rolling stock by a fraction, the numerator of
which is the miles traveled within this state by the leased or rented rolling stock and the
denominator of which is the total miles traveled by the leased or rented rolling stock.

(3) The extent that an aircraft is used in this state is determined by multiplying the
receipts from the lease or rental of the aircraft by a fraction, the numerator of which is
the number of landings of the aircraft in this state and the denominator of which is the
total number of landings of the aircraft.

(4) The extent that a vessel, mobile equipment, or other mobile property is used in
the state is determined by multiplying the receipts from the lease or rental of the property
by a fraction, the numerator of which is the number of days during the taxable year the
property was in this state and the denominator of which is the total days in the taxable year.

(h) Royalties and other income received for the use of or for the privilege of using
intangible property, including patents, know-how, formulas, designs, processes, patterns,
copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or
similar items, must be attributed to the state in which the property is used by the purchaser.
If the property is used in more than one state, the royalties or other income must be
apportioned to this state pro rata according to the portion of use in this state. If the portion
of use in this state cannot be determined, the royalties or other income must be excluded
from both the numerator and the denominator. Intangible property is used in this state if
the purchaser uses the intangible property or the rights therein in the regular course of its
business operations in this state, regardless of the location of the purchaser's customers.

(i) Sales of intangible property are made within the state in which the property is
used by the purchaser. If the property is used in more than one state, the sales must be
apportioned to this state pro rata according to the portion of use in this state. If the
portion of use in this state cannot be determined, the sale must be excluded from both the
numerator and the denominator of the sales factor. Intangible property is used in this
state if the purchaser used the intangible property in the regular course of its business
operations in this state.

(j) Receipts from the performance of services must be attributed to the state where
the services are received. For the purposes of this section, receipts from the performance
of services provided to a corporation, partnership, or trust may only be attributed to a state
where it has a fixed place of doing business. If the state where the services are received is
not readily determinable or is a state where the corporation, partnership, or trust receiving
the service does not have a fixed place of doing business, the services shall be deemed
to be received at the location of the office of the customer from which the services were
ordered in the regular course of the customer's trade or business. If the ordering office
cannot be determined, the services shall be deemed to be received at the office of the
customer to which the services are billed.

(k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts
from management, distribution, or administrative services performed by a corporation
or trust for a fund of a corporation or trust regulated under United States Code, title 15,
sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of
the fund resides. Under this paragraph, receipts for services attributed to shareholders are
determined on the basis of the ratio of: (1) the average of the outstanding shares in the
fund owned by shareholders residing within Minnesota at the beginning and end of each
year; and (2) the average of the total number of outstanding shares in the fund at the
beginning and end of each year. Residence of the shareholder, in the case of an individual,
is determined by the mailing address furnished by the shareholder to the fund. Residence
of the shareholder, when the shares are held by an insurance company as a depositor for
the insurance company policyholders, is the mailing address of the policyholders. In
the case of an insurance company holding the shares as a depositor for the insurance
company policyholders, if the mailing address of the policyholders cannot be determined
by the taxpayer, the receipts must be excluded from both the numerator and denominator.
Residence of other shareholders is the mailing address of the shareholder.

new text begin EFFECTIVE DATE. new text end

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

Sec. 71.

Minnesota Statutes 2012, section 290.9728, subdivision 2, is amended to read:

Subd. 2.

Taxable income.

For purposes of this section, taxable income means
the lesser of:

(1) the amount of the net capital gain of the S corporation for the taxable year, as
determined under sections 1222 and 1374 of the Internal Revenue Code, and subject to the
modifications provided in section 290.01, deleted text begin subdivisions 19e and deleted text end new text begin subdivision new text end 19f, in excess
of $25,000 that is allocable to this state under section 290.17, 290.191, or 290.20; or

(2) the amount of the S corporation's federal taxable income, subject to the
provisions of section 290.01, subdivisions 19c to 19f, that is allocable to this state under
section 290.17, 290.191, or 290.20.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 72.

Minnesota Statutes 2013 Supplement, section 297A.61, subdivision 3, is
amended to read:

Subd. 3.

Sale and purchase.

(a) "Sale" and "purchase" include, but are not limited
to, each of the transactions listed in this subdivision. In applying the provisions of this
chapter, the terms "tangible personal property" and "retail sale" include the taxable
services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision
of these taxable services, unless specifically provided otherwise. Services performed by
an employee for an employer are not taxable. Services performed by a partnership or
association for another partnership or association are not taxable if one of the entities owns
or controls more than 80 percent of the voting power of the equity interest in the other
entity. Services performed between members of an affiliated group of corporations are not
taxable. For purposes of the preceding sentence, "affiliated group of corporations" means
those entities that would be classified as members of an affiliated group as defined under
United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).

(b) Sale and purchase include:

(1) any transfer of title or possession, or both, of tangible personal property, whether
absolutely or conditionally, for a consideration in money or by exchange or barter; and

(2) the leasing of or the granting of a license to use or consume, for a consideration
in money or by exchange or barter, tangible personal property, other than a manufactured
home used for residential purposes for a continuous period of 30 days or more.

(c) Sale and purchase include the production, fabrication, printing, or processing of
tangible personal property for a consideration for consumers who furnish either directly or
indirectly the materials used in the production, fabrication, printing, or processing.

(d) Sale and purchase include the preparing for a consideration of food.
Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited
to, the following:

(1) prepared food sold by the retailer;

(2) soft drinks;

(3) candy;

(4) dietary supplements; and

(5) all food sold through vending machines.

(e) A sale and a purchase includes the furnishing for a consideration of electricity,
gas, water, or steam for use or consumption within this state.

(f) A sale and a purchase includes the transfer for a consideration of prewritten
computer software whether delivered electronically, by load and leave, or otherwise.

(g) A sale and a purchase includes the furnishing for a consideration of the following
services:

(1) the privilege of admission to places of amusement, recreational areas, or athletic
events, and the making available of amusement devices, tanning facilities, reducing
salons, steam baths, deleted text begin Turkish baths, deleted text end health clubs, and spas or athletic facilities;

(2) lodging and related services by a hotel, rooming house, resort, campground,
motel, or trailer camp, including furnishing the guest of the facility with access to
telecommunication services, and the granting of any similar license to use real property in
a specific facility, other than the renting or leasing of it for a continuous period of 30 days
or more under an enforceable written agreement that may not be terminated without prior
notice and including accommodations intermediary services provided in connection with
other services provided under this clause;

(3) nonresidential parking services, whether on a contractual, hourly, or other
periodic basis, except for parking at a meter;

(4) the granting of membership in a club, association, or other organization if:

(i) the club, association, or other organization makes available for the use of its
members sports and athletic facilities, without regard to whether a separate charge is
assessed for use of the facilities; and

(ii) use of the sports and athletic facility is not made available to the general public
on the same basis as it is made available to members.

Granting of membership means both onetime initiation fees and periodic membership
dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
swimming pools; and other similar athletic or sports facilities;

(5) delivery of aggregate materials by a third party, excluding delivery of aggregate
material used in road construction; and delivery of concrete block by a third party if the
delivery would be subject to the sales tax if provided by the seller of the concrete block.
For purposes of this clause, "road construction" means construction of:

(i) public roads;

(ii) cartways; and

(iii) private roads in townships located outside of the seven-county metropolitan area
up to the point of the emergency response location sign; and

(6) services as provided in this clause:

(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
include services provided by coin operated facilities operated by the customer;

(ii) motor vehicle washing, waxing, and cleaning services, including services
provided by coin operated facilities operated by the customer, and rustproofing,
undercoating, and towing of motor vehicles;

(iii) building and residential cleaning, maintenance, and disinfecting services and
pest control and exterminating services;

(iv) detective, security, burglar, fire alarm, and armored car services; but not
including services performed within the jurisdiction they serve by off-duty licensed peace
officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit
organization or any organization at the direction of a county for monitoring and electronic
surveillance of persons placed on in-home detention pursuant to court order or under the
direction of the Minnesota Department of Corrections;

(v) pet grooming services;

(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for
public utility lines. Services performed under a construction contract for the installation of
shrubbery, plants, sod, trees, bushes, and similar items are not taxable;

(vii) massages, except when provided by a licensed health care facility or
professional or upon written referral from a licensed health care facility or professional for
treatment of illness, injury, or disease; and

(viii) the furnishing of lodging, board, and care services for animals in kennels and
other similar arrangements, but excluding veterinary and horse boarding services.

(h) A sale and a purchase includes the furnishing for a consideration of tangible
personal property or taxable services by the United States or any of its agencies or
instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
subdivisions.

(i) A sale and a purchase includes the furnishing for a consideration of
telecommunications services, ancillary services associated with telecommunication
services, and pay television services. Telecommunication services include, but are
not limited to, the following services, as defined in section 297A.669: air-to-ground
radiotelephone service, mobile telecommunication service, postpaid calling service,
prepaid calling service, prepaid wireless calling service, and private communication
services. The services in this paragraph are taxed to the extent allowed under federal law.

(j) A sale and a purchase includes the furnishing for a consideration of installation if
the installation charges would be subject to the sales tax if the installation were provided
by the seller of the item being installed.

(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
59B.02, subdivision 11.

(l) A sale and a purchase includes furnishing for a consideration of specified digital
products or other digital products or granting the right for a consideration to use specified
digital products or other digital products on a temporary or permanent basis and regardless
of whether the purchaser is required to make continued payments for such right. Wherever
the term "tangible personal property" is used in this chapter, other than in subdivisions 10
and 38, the provisions also apply to specified digital products, or other digital products,
unless specifically provided otherwise or the context indicates otherwise.

(m) A sale and purchase includes the furnishing for consideration of the following
services:

(1) repairing and maintaining electronic and precision equipment, which service can
be deducted as a business expense under the Internal Revenue Code. This includes, but
is not limited to, repair or maintenance of electronic devices, computers and computer
peripherals, monitors, computer terminals, storage devices, and CD-ROM drives; other
office equipment such as photocopying machines, printers, and facsimile machines;
televisions, stereos, sound systems, video or digital recorders and players; two-way radios
and other communications equipment; radar and sonar equipment, scientific instruments,
microscopes, and medical equipment;

(2) repairing and maintaining commercial and industrial machinery and equipment.
For purposes of this subdivision, the following items are not commercial or industrial
machinery and equipment: (i) motor vehicles; (ii) furniture and fixtures; (iii) ships; (iv)
railroad stock; and (v) aircraft; and

(3) warehousing or storage services for tangible personal property, excluding:

(i) agricultural products;

(ii) refrigerated storage;

(iii) electronic data; and

(iv) self-storage services and storage of motor vehicles, recreational vehicles, and
boats, not eligible to be deducted as a business expense under the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

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

Sec. 73.

Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 5, is
amended to read:

Subd. 5.

Capital equipment.

(a) Capital equipment is exempt.

"Capital equipment" means machinery and equipment purchased or leased, and used
in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining,
or refining tangible personal property to be sold ultimately at retail if the machinery and
equipment are essential to the integrated production process of manufacturing, fabricating,
mining, or refining. Capital equipment also includes machinery and equipment
used primarily to electronically transmit results retrieved by a customer of an online
computerized data retrieval system.

(b) Capital equipment includes, but is not limited to:

(1) machinery and equipment used to operate, control, or regulate the production
equipment;

(2) machinery and equipment used for research and development, design, quality
control, and testing activities;

(3) environmental control devices that are used to maintain conditions such as
temperature, humidity, light, or air pressure when those conditions are essential to and are
part of the production process;

(4) materials and supplies used to construct and install machinery or equipment;

(5) repair and replacement parts, including accessories, whether purchased as spare
parts, repair parts, or as upgrades or modifications to machinery or equipment;

(6) materials used for foundations that support machinery or equipment;

(7) materials used to construct and install special purpose buildings used in the
production process;

(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed
as part of the delivery process regardless if mounted on a chassis, repair parts for
ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and

(9) machinery or equipment used for research, development, design, or production
of computer software.

(c) Capital equipment does not include the following:

(1) motor vehicles taxed under chapter 297B;

(2) machinery or equipment used to receive or store raw materials;

(3) building materials, except for materials included in paragraph (b), clauses (6)
and (7);

(4) machinery or equipment used for nonproduction purposes, including, but not
limited to, the following: plant security, fire prevention, first aid, and hospital stations;
support operations or administration; pollution control; and plant cleaning, disposal of
scrap and waste, plant communications, space heating, cooling, lighting, or safety;

(5) farm machinery and aquaculture production equipment as defined by section
297A.61, subdivisions 12 and 13;

(6) machinery or equipment purchased and installed by a contractor as part of an
improvement to real property;

(7) machinery and equipment used by restaurants in the furnishing, preparing, or
serving of prepared foods as defined in section 297A.61, subdivision 31;

(8) machinery and equipment used to furnish the services listed in section 297A.61,
subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii);

(9) machinery or equipment used in the transportation, transmission, or distribution
of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines,
tanks, mains, or other means of transporting those products. This clause does not apply to
machinery or equipment used to blend petroleum or biodiesel fuel as defined in section
239.77; or

(10) any other item that is not essential to the integrated process of manufacturing,
fabricating, mining, or refining.

(d) For purposes of this subdivision:

(1) "Equipment" means independent devices or tools separate from machinery but
essential to an integrated production process, including computers and computer software,
used in operating, controlling, or regulating machinery and equipment; and any subunit or
assembly comprising a component of any machinery or accessory or attachment parts of
machinery, such as tools, dies, jigs, patterns, and molds.

(2) "Fabricating" means to make, build, create, produce, or assemble components or
property to work in a new or different manner.

(3) "Integrated production process" means a process or series of operations through
which tangible personal property is manufactured, fabricated, mined, or refined. For
purposes of this clause, (i) manufacturing begins with the removal of raw materials
from inventory and ends when the last process prior to loading for shipment has been
completed; (ii) fabricating begins with the removal from storage or inventory of the
property to be assembled, processed, altered, or modified and ends with the creation
or production of the new or changed product; (iii) mining begins with the removal of
overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and
ends when the last process before stockpiling is completed; and (iv) refining begins with
the removal from inventory or storage of a natural resource and ends with the conversion
of the item to its completed form.

(4) "Machinery" means mechanical, electronic, or electrical devices, including
computers and computer software, that are purchased or constructed to be used for the
activities set forth in paragraph (a), beginning with the removal of raw materials from
inventory through completion of the product, including packaging of the product.

(5) "Machinery and equipment used for pollution control" means machinery and
equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity
described in paragraph (a).

(6) "Manufacturing" means an operation or series of operations where raw materials
are changed in form, composition, or condition by machinery and equipment and which
results in the production of a new article of tangible personal property. For purposes of
this subdivision, "manufacturing" includes the generation of electricity or steam to be
sold at retail.

(7) "Mining" means the extraction of minerals, ores, stone, or peat.

(8) "Online data retrieval system" means a system whose cumulation of information
is equally available and accessible to all its customers.

(9) "Primarily" means machinery and equipment used 50 percent or more of the time
in an activity described in paragraph (a).

(10) "Refining" means the process of converting a natural resource to an intermediate
or finished product, including the treatment of water to be sold at retail.

(11) This subdivision does not apply to telecommunications equipment deleted text begin as
provided in subdivision 35, deleted text end and does not apply to wire, cable, fiber, poles, or conduit
for telecommunications services.

new text begin EFFECTIVE DATE. new text end

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

Sec. 74.

Minnesota Statutes 2012, section 297A.70, subdivision 10, is amended to read:

Subd. 10.

Nonprofit tickets or admissions.

(a) Tickets or admissions to an event
are exempt if all the gross receipts are recorded as such, in accordance with generally
accepted accounting principles, on the books of one or more organizations whose primary
mission is to provide an opportunity for citizens of the state to participate in the creation,
performance, or appreciation of the arts, and provided that each organization is:

(1) an organization described in section 501(c)(3) of the Internal Revenue Code
in which voluntary contributions make up at least deleted text begin the following deleted text end new text begin five new text end percent of the
organization's annual revenue in its most recently completed 12-month fiscal year, or in
the current year if the organization has not completed a 12-month fiscal year deleted text begin : deleted text end new text begin ;
new text end

deleted text begin (i) for sales made after July 31, 2001, and before July 1, 2002, for the organization's
fiscal year completed in calendar year 2000, three percent;
deleted text end

deleted text begin (ii) for sales made on or after July 1, 2002, and on or before June 30, 2003, for the
organization's fiscal year completed in calendar year 2001, three percent;
deleted text end

deleted text begin (iii) for sales made on or after July 1, 2003, and on or before June 30, 2004, for the
organization's fiscal year completed in calendar year 2002, four percent; and
deleted text end

deleted text begin (iv) for sales made in each 12-month period, beginning on July 1, 2004, and each
subsequent year, for the organization's fiscal year completed in the preceding calendar
year, five percent;
deleted text end

(2) a municipal board that promotes cultural and arts activities; or

(3) the University of Minnesota, a state college and university, or a private nonprofit
college or university provided that the event is held at a facility owned by the educational
institution holding the event.

The exemption only applies if the entire proceeds, after reasonable expenses, are used
solely to provide opportunities for citizens of the state to participate in the creation,
performance, or appreciation of the arts.

(b) Tickets or admissions to the premises of the Minnesota Zoological Garden are
exempt, provided that the exemption under this paragraph does not apply to tickets or
admissions to performances or events held on the premises unless the performance or
event is sponsored and conducted exclusively by the Minnesota Zoological Board or
employees of the Minnesota Zoological Garden.

new text begin EFFECTIVE DATE. new text end

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

Sec. 75.

Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 1, is
amended to read:

Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the
following exempt items must be imposed and collected as if the sale were taxable and the
rate under section 297A.62, subdivision 1, applied. The exempt items include:

(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(2) building materials for mineral production facilities exempt under section
297A.71, subdivision 14;

(3) building materials for correctional facilities under section 297A.71, subdivision 3;

(4) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;

(5) elevators and building materials exempt under section 297A.71, subdivision 12;

deleted text begin (6) building materials for the Long Lake Conservation Center exempt under section
297A.71, subdivision 17;
deleted text end

deleted text begin (7) deleted text end new text begin (6) new text end materials and supplies for qualified low-income housing under section
297A.71, subdivision 23;

deleted text begin (8) deleted text end new text begin (7) new text end materials, supplies, and equipment for municipal electric utility facilities
under section 297A.71, subdivision 35;

deleted text begin (9) deleted text end new text begin (8) new text end 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;

deleted text begin (10) deleted text end new text begin (9) new text end commuter rail vehicle and repair parts under section 297A.70, subdivision
3, paragraph (a), clause (10);

deleted text begin (11) deleted text end new text begin (10) new text end materials, supplies, and equipment for construction or improvement of
projects and facilities under section 297A.71, subdivision 40;

deleted text begin (12) deleted text end new text begin (11) new text end materials, supplies, and equipment for construction or improvement of a
meat processing facility exempt under section 297A.71, subdivision 41;

deleted text begin (13) deleted text end new text begin (12) new text end materials, supplies, and equipment for construction, improvement, or
expansion of:

(i) an aerospace defense manufacturing facility exempt under section 297A.71,
subdivision 42;

(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71,
subdivision 45;

(iii) a research and development facility exempt under section 297A.71, subdivision
46; and

(iv) an industrial measurement manufacturing and controls facility exempt under
section 297A.71, subdivision 47;

deleted text begin (14) deleted text end new text begin (13) new text end enterprise information technology equipment and computer software for
use in a qualified data center exempt under section 297A.68, subdivision 42;

deleted text begin (15) deleted text end new text begin (14) new text end materials, supplies, and equipment for qualifying capital projects under
section 297A.71, subdivision 44;

deleted text begin (16) deleted text end new text begin (15) new text end items purchased for use in providing critical access dental services exempt
under section 297A.70, subdivision 7, paragraph (c); and

deleted text begin (17) deleted text end new text begin (16) new text end items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44.

new text begin EFFECTIVE DATE. new text end

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

Sec. 76.

Minnesota Statutes 2013 Supplement, 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 deleted text begin (16) deleted text end new text begin (15) new text end , the applicant must be the
purchaser;

(2) for subdivision 1, deleted text begin clauses deleted text end new text begin clause new text end (3) deleted text begin and (6) deleted text end , 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 deleted text begin (7) deleted text end new text begin (6) new text end , the owner of the qualified low-income housing
project;

(6) for subdivision 1, clause deleted text begin (8) deleted text end new text begin (7) new text end , the applicant must be a municipal electric utility
or a joint venture of municipal electric utilities;

(7) for subdivision 1, clauses deleted text begin (9), (12), (13), (14) deleted text end new text begin (8), (11), (12), (13) new text end , and deleted text begin (17) deleted text end new text begin (16) new text end ,
the owner of the qualifying business; and

(8) for subdivision 1, clauses new text begin (9), new text end (10), deleted text begin (11), deleted text end and deleted text begin (15) deleted text end new text begin (14) new text end , the applicant must be the
governmental entity that owns or contracts for the project or facility.

new text begin EFFECTIVE DATE. new text end

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

Sec. 77.

Minnesota Statutes 2013 Supplement, 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 deleted text begin (15) deleted text end new text begin (13) new text end , or deleted text begin (17) deleted text end new text begin (15) 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.

deleted text begin (c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not
exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71,
subdivision 40, must not be filed until after June 30, 2009.
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. 78.

Minnesota Statutes 2012, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

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

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

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

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

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

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

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

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

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

(e) deleted text begin For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
For fiscal year 2004 and thereafter, deleted text end 72.43 percent of the revenues, including interest and
penalties, transmitted to the commissioner under section 297A.65, must be deposited by
the commissioner in the state treasury as follows:

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

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

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

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

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

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

(g) The revenues deposited under paragraphs (a) to (f) do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section
297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
Constitution, article XI, section 15.

new text begin EFFECTIVE DATE. new text end

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

Sec. 79.

Minnesota Statutes 2012, section 297B.09, is amended to read:

297B.09 ALLOCATION OF REVENUE.

Subdivision 1.

Deposit of revenues.

(a) Money collected and received under this
chapter must be deposited as provided in this subdivision.

deleted text begin (b) From July 1, 2007, through June 30, 2008, 38.25 percent of the money collected
and received must be deposited in the highway user tax distribution fund, 24 percent must
be deposited in the metropolitan area transit account under section 16A.88, and 1.5 percent
must be deposited in the greater Minnesota transit account under section 16A.88. The
remaining money must be deposited in the general fund.
deleted text end

deleted text begin (c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected
and received must be deposited in the highway user tax distribution fund, 27.75 percent
must be deposited in the metropolitan area transit account under section 16A.88, 1.75
percent must be deposited in the greater Minnesota transit account under section 16A.88,
and the remaining money must be deposited in the general fund.
deleted text end

deleted text begin (d) From July 1, 2009, through June 30, 2010, 47.5 percent of the money collected
and received must be deposited in the highway user tax distribution fund, 30 percent
must be deposited in the metropolitan area transit account under section 16A.88, 3.5
percent must be deposited in the greater Minnesota transit account under section 16A.88,
and 16.25 percent must be deposited in the general fund. The remaining amount must
be deposited as follows:
deleted text end

deleted text begin (1) 1.5 percent in the metropolitan area transit account, except that any amount in
excess of $6,000,000 must be deposited in the highway user tax distribution fund; and
deleted text end

deleted text begin (2) 1.25 percent in the greater Minnesota transit account, except that any amount in
excess of $5,000,000 must be deposited in the highway user tax distribution fund.
deleted text end

deleted text begin (e) From July 1, 2010, through June 30, 2011, 54.5 percent of the money collected
and received must be deposited in the highway user tax distribution fund, 33.75 percent
must be deposited in the metropolitan area transit account under section 16A.88, 3.75
percent must be deposited in the greater Minnesota transit account under section 16A.88,
and 6.25 percent must be deposited in the general fund. The remaining amount must
be deposited as follows:
deleted text end

deleted text begin (1) 1.5 percent in the metropolitan area transit account, except that any amount in
excess of $6,750,000 must be deposited in the highway user tax distribution fund; and
deleted text end

deleted text begin (2) 0.25 percent in the greater Minnesota transit account, except that any amount in
excess of $1,250,000 must be deposited in the highway user tax distribution fund.
deleted text end

deleted text begin (f) On and after July 1, 2011, deleted text end new text begin (b) new text end 60 percent of the money collected and received
must be deposited in the highway user tax distribution fund, 36 percent must be deposited
in the metropolitan area transit account under section 16A.88, and four percent must be
deposited in the greater Minnesota transit account under section 16A.88.

deleted text begin (g) deleted text end new text begin (c) new text end It is the intent of the legislature that the allocations under paragraph deleted text begin (f) deleted text end new text begin (b)
new text end remain unchanged for fiscal year 2012 and all subsequent fiscal years.

new text begin EFFECTIVE DATE. new text end

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

Sec. 80.

Minnesota Statutes 2012, section 297F.03, subdivision 2, is amended to read:

Subd. 2.

Form of application.

Every application for a cigarette or tobacco products
license shall be made on a form prescribed by the commissioner deleted text begin and shall state the name
and address of the applicant; if the applicant is a firm, partnership, or association, the name
and address of each of its members; if the applicant is a corporation, the name and address
of each of its officers; the address of its principal place of business; the place where the
business to be licensed is to be conducted; and any other information the commissioner
may require for the administration of this chapter 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. 81.

Minnesota Statutes 2012, section 297I.05, subdivision 14, is amended to read:

Subd. 14.

Life insurance.

A tax is imposed on life insurance. The rate of tax equals
deleted text begin a percentage deleted text end new text begin 1.5 percent new text end of gross premiums less return premiums on all direct business
received by the insurer or agents of the insurer in Minnesota for life insurance, in cash or
otherwise, during the year. deleted text begin For premiums received after December 31, 2005, but before
January 1, 2007, the rate of tax is 1.875 percent. For premiums received after December
31, 2006, but before January 1, 2008, the rate of tax is 1.75 percent. For premiums
received after December 31, 2007, but before January 1, 2009, the rate of tax is 1.625
percent. For premiums received after December 31, 2008, the rate of tax is 1.5 percent.
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. 82.

Minnesota Statutes 2012, section 412.131, is amended to read:

412.131 ASSESSOR; DUTIES, COMPENSATION.

The city assessor, if there is one, shall assess and return as provided by law all
property taxable within the city, if a separate assessment district, and the assessor of the
town within which the city lies shall not include in the return any property taxable in the
city. Any assessor may appoint a deputy assessor as provided in section 273.06. The
assessor may be compensated on a full-time or part-time basis at the option of the council
deleted text begin but the compensation shall be not less than $100 in any one year, if fixed on an annual
basis, or not more than $20 per day, if fixed on a per diem basis. If the compensation is
not fixed by the council the assessor shall be entitled to compensation at the rate of $20
per day for each days service necessarily rendered deleted text end , and mileage at the rate paid other city
officers for each mile necessarily traveled in going to and returning from the county seat of
the county to attend any meeting of the assessors of the county legally called by the county
auditor, and also for each mile necessarily traveled in making the return of assessment
to the proper county officer and in attending sectional meetings called by the county
assessor, except when mileage is paid by the county. In addition to other compensation,
the council may allow the assessor mileage at the same rate per mile as paid other city
officers for each mile necessarily traveled in assessment work.

new text begin EFFECTIVE DATE. new text end

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

Sec. 83.

Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 3,
is amended to read:

Subd. 3.

Reporting; definitions.

deleted text begin (a) deleted text end On or before September 1, annually, the
executive director of the Public Employees Retirement Association shall report to the
commissioner of revenue the following:

(1) the municipalities which employ firefighters with retirement coverage by the
public employees police and fire retirement plan;

deleted text begin (2) the number of firefighters with public employees police and fire retirement plan
coverage employed by each municipality;
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end the fire departments covered by the voluntary statewide lump-sum volunteer
firefighter retirement plan; and

deleted text begin (4) deleted text end new text begin (3) new text end any other information requested by the commissioner to administer the police
and firefighter retirement supplemental state aid program.

deleted text begin (b) For this subdivision, (i) the number of firefighters employed by a municipality
who have public employees police and fire retirement plan coverage means the number
of firefighters with public employees police and fire retirement plan coverage that were
employed by the municipality for not less than 30 hours per week for a minimum of six
months prior to December 31 preceding the date of the payment under this section and, if
the person was employed for less than the full year, prorated to the number of full months
employed; and (ii) the number of active police officers certified for police state aid receipt
under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of
police officers meeting the definition of peace officer in section 69.011, subdivision 1,
counted as provided and limited by section 69.011, subdivisions 2 and 2b.
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. 84.

Minnesota Statutes 2012, section 469.176, subdivision 1b, is amended to read:

Subd. 1b.

Duration limits; terms.

(a) No tax increment shall in any event be
paid to the authority:

(1) after 15 years after receipt by the authority of the first increment for a renewal
and renovation district;

(2) after 20 years after receipt by the authority of the first increment for a soils
condition district;

(3) after eight years after receipt by the authority of the first increment for an
economic development district;

(4) for a housing district deleted text begin , a compact development district, deleted text end or a redevelopment
district, after 25 years from the date of receipt by the authority of the first increment.

(b) For purposes of determining a duration limit under this subdivision or subdivision
1e that is based on the receipt of an increment, any increments from taxes payable in the year
in which the district terminates shall be paid to the authority. This paragraph does not affect
a duration limit calculated from the date of approval of the tax increment financing plan or
based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph
does not supersede the restrictions on payment of delinquent taxes in subdivision 1f.

(c) An action by the authority to waive or decline to accept an increment has no
effect for purposes of computing a duration limit based on the receipt of increment under
this subdivision or any other provision of law. The authority is deemed to have received an
increment for any year in which it waived or declined to accept an increment, regardless
of whether the increment was paid to the authority.

(d) Receipt by a hazardous substance subdistrict of an increment as a result of a
reduction in original net tax capacity under section 469.174, subdivision 7, paragraph
(b), does not constitute receipt of increment by the overlying district for the purpose of
calculating the duration limit under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 85.

Minnesota Statutes 2012, section 469.176, subdivision 3, is amended to read:

Subd. 3.

Limitation on administrative expenses.

(a) For districts for which
certification was requested before deleted text begin August 1, 1979, or after June 30, 1982 and before
deleted text end August 1, 2001, no tax increment shall be used to pay any administrative expenses for
a project which exceed ten percent of the total estimated tax increment expenditures
authorized by the tax increment financing plan or the total tax increment expenditures
for the project, whichever is less.

deleted text begin (b) For districts for which certification was requested after July 31, 1979, and before
July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in
Minnesota Statutes 1980, section 273.73, for a district which exceeds five percent of the
total tax increment expenditures authorized by the tax increment financing plan or the total
estimated tax increment expenditures for the district, whichever is less.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end For districts for which certification was requested after July 31, 2001, no tax
increment may be used to pay any administrative expenses for a project which exceed
ten percent of total estimated tax increment expenditures authorized by the tax increment
financing plan or the total tax increments, as defined in section 469.174, subdivision 25,
clause (1), from the district, whichever is less.

deleted text begin (d) deleted text end new text begin (c) new text end Increments used to pay the county's administrative expenses under
subdivision 4h are not subject to the percentage limits in this subdivision.

new text begin EFFECTIVE DATE. new text end

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

Sec. 86.

Minnesota Statutes 2013 Supplement, section 469.1763, subdivision 2,
is amended to read:

Subd. 2.

Expenditures outside district.

(a) For each tax increment financing
district, an amount equal to at least 75 percent of the total revenue derived from tax
increments paid by properties in the district must be expended on activities in the district
or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the request for certification
was made after June 30, 1995, the in-district percentage for purposes of the preceding
sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
increments paid by properties in the district may be expended, through a development fund
or otherwise, on activities outside of the district but within the defined geographic area of
the project except to pay, or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the request for certification was
made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
20 percent. The revenue derived from tax increments for the district that are expended on
costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
calculating the percentages that must be expended within and without the district.

(b) In the case of a housing district, a housing project, as defined in section 469.174,
subdivision 11, is an activity in the district.

(c) All administrative expenses are for activities outside of the district, except that
if the only expenses for activities outside of the district under this subdivision are for
the purposes described in paragraph (d), administrative expenses will be considered as
expenditures for activities in the district.

(d) The authority may elect, in the tax increment financing plan for the district,
to increase by up to ten percentage points the permitted amount of expenditures for
activities located outside the geographic area of the district under paragraph (a). As
permitted by section 469.176, subdivision 4k, the expenditures, including the permitted
expenditures under paragraph (a), need not be made within the geographic area of the
project. Expenditures that meet the requirements of this paragraph are legally permitted
expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j.
To qualify for the increase under this paragraph, the expenditures must:

(1) be used exclusively to assist housing that meets the requirement for a qualified
low-income building, as that term is used in section 42 of the Internal Revenue Code; and

(2) not exceed the qualified basis of the housing, as defined under section 42(c) of
the Internal Revenue Code, less the amount of any credit allowed under section 42 of
the Internal Revenue Code; and

(3) be used to:

(i) acquire and prepare the site of the housing;

(ii) acquire, construct, or rehabilitate the housing; or

(iii) make public improvements directly related to the housing; or

(4) be used to develop housing:

(i) if the market value of the housing does not exceed the lesser of:

(A) 150 percent of the average market value of single-family homes in that
municipality; or

(B) $200,000 for municipalities located in the metropolitan area, as defined in
section 473.121, or $125,000 for all other municipalities; and

(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
demolition of existing structures, site preparation, and pollution abatement on one or
more parcels, if the parcel contains a residence containing one to four family dwelling
units that has been vacant for six or more months and is in foreclosure as defined in
section 325N.10, subdivision 7, but without regard to whether the residence is the owner's
principal residence, and only after the redemption period has expired.

(e) For a district created within a biotechnology and health sciences industry zone
as defined in new text begin Minnesota Statutes 2012, new text end section 469.330, subdivision 6, or for an existing
district located within such a zone, tax increment derived from such a district may be
expended outside of the district but within the zone only for expenditures required for the
construction of public infrastructure necessary to support the activities of the zone, land
acquisition, and other redevelopment costs as defined in section 469.176, subdivision 4j.
These expenditures are considered as expenditures for activities within the district. new text begin The
authority provided by this paragraph expires for expenditures made after the later of (1)
December 31, 2015, or (2) the end of the five-year period beginning on the date the district
was certified, provided that date was before January 1, 2016.
new text end

(f) The authority under paragraph (d), clause (4), expires on December 31, 2016.
Increments may continue to be expended under this authority after that date, if they are
used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
(a), if December 31, 2016, is considered to be the last date of the five-year period after
certification under that provision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all districts, regardless of when the request for certification was made.
new text end

Sec. 87.

Minnesota Statutes 2012, section 473.665, subdivision 5, is amended to read:

Subd. 5.

Tax levy; surplus; reduction.

The corporation, upon issuing any bonds
under the provisions of this section, shall, before the issuance thereof, levy for each year,
until the principal and interest are paid in full, a direct annual tax on all the taxable property
of the cities in and for which the corporation has been created in an amount not less than
five percent in excess of the sum required to pay the principal and interest thereof, when
and as such principal and interest matures. After any of such bonds have been delivered to
purchasers, such tax shall be irrepealable until all such indebtedness is paid, and after the
issuance of such bonds no further action of the corporation shall be necessary to authorize
the extensions, assessments, and collection of such tax. The secretary of the corporation
shall forthwith furnish a certified copy of such levy to the county auditor or county
auditors of the county or counties in which the cities in and for which the corporation has
been created are located, together with full information regarding the bonds for which the
tax is levied, and such county auditor or such county auditors, as the case may be, shall
enter the same in the register provided for in section 475.62, or a similar register, and shall
extend and assess the tax so levied. If both cities are located wholly within one county, the
county auditor thereof shall annually extend and assess the amount of the tax so levied. If
the cities are located in different counties, the county auditor of each such county shall
annually extend and assess such portion of the tax levied as the net tax capacity of the
taxable property deleted text begin , not including moneys and credits, deleted text end located wholly within the city in such
county bears to the total net tax capacity of the taxable property deleted text begin , not including moneys and
credits, deleted text end within both cities. Any surplus resulting from the excess levy herein provided
for shall be transferred to a sinking fund after the principal and interest for which the tax
was levied and collected has been paid; provided, that the corporation may, on or before
October 15 in any year, by appropriate action, cause its secretary to certify to the county
auditor, or auditors, the amount on hand and available in its treasury from earnings, or
otherwise, including the amount in the sinking fund, which it will use to pay principal or
interest or both on each specified issue of its bonds, and the county auditor or auditors
shall reduce the levy for that year, herein provided for by that amount. The amount of
funds so certified shall be set aside by the corporation, and be used for no other purpose
than for the payment of the principal and interest of the bonds. All taxes hereunder shall
be collected and remitted to the corporation by the county treasurer or county treasurers,
in accordance with the provisions of law governing the collection of other taxes, and shall
be used solely for the payment of the bonds where due.

new text begin EFFECTIVE DATE. new text end

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

Sec. 88.

Minnesota Statutes 2012, section 477A.0124, subdivision 5, is amended to
read:

Subd. 5.

County transition aid.

deleted text begin (a) For 2009 and each year thereafter, deleted text end A county is
eligible to receive the transition aid it received in 2007.

deleted text begin (b) In 2009 only, a county with (1) a 2006 population less than 30,000, and (2)
an average Part I crimes per capita greater than 3.9 percent based on factors used in
determining county program aid payable in 2008, shall receive $100,000.
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. 89.

Minnesota Statutes 2012, section 477A.014, subdivision 1, is amended to read:

Subdivision 1.

Calculations and payments.

(a) The commissioner of revenue shall
make all necessary calculations and make payments pursuant to sections 477A.013 and
477A.03 directly to the affected taxing authorities annually. In addition, the commissioner
shall notify the authorities of their aid amounts, as well as the computational factors used
in making the calculations for their authority, and those statewide total figures that are
pertinent, before August 1 of the year preceding the aid distribution year.

(b) For the purposes of this subdivision, aid is determined for a city or town based
on its city or town status as of June 30 of the year preceding the aid distribution year. If
the effective date for a municipal incorporation, consolidation, annexation, detachment,
dissolution, or township organization is on or before June 30 of the year preceding
the aid distribution year, such change in boundaries or form of government shall be
recognized for aid determinations for the aid distribution year. If the effective date for a
municipal incorporation, consolidation, annexation, detachment, dissolution, or township
organization is after June 30 of the year preceding the aid distribution year, such change in
boundaries or form of government shall not be recognized for aid determinations until
the following year.

(c) Changes in boundaries or form of government will only be recognized for the
purposes of this subdivision, to the extent that: (1) changes in market values are included
in market values reported by assessors to the commissioner, and changes in population deleted text begin ,
deleted text end new text begin and new text end household size deleted text begin , and the road accidents factor deleted text end are included in their respective
certifications to the commissioner as referenced in section 477A.011, or (2) an annexation
information report as provided in paragraph (d) is received by the commissioner on
or before July 15 of the aid calculation year. Revisions to estimates or data for use in
recognizing changes in boundaries or form of government are not effective for purposes
of this subdivision unless received by the commissioner on or before July 15 of the aid
calculation year. Clerical errors in the certification or use of estimates and data established
as of July 15 in the aid calculation year are subject to correction within the time periods
allowed under subdivision 3.

(d) In the case of an annexation, an annexation information report may be completed
by the annexing jurisdiction and submitted to the commissioner for purposes of this
subdivision if the net tax capacity of annexed area for the assessment year preceding the
effective date of the annexation exceeds five percent of the city's net tax capacity for the
same year. The form and contents of the annexation information report shall be prescribed
by the commissioner. The commissioner shall change the net tax capacity, the population,
the population decline, the commercial industrial percentage, and the transformed
population for the annexing jurisdiction only if the annexation information report provides
data the commissioner determines to be reliable for all of these factors used to compute city
revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940
housing percentage deleted text begin , the road accidents factor, deleted text end and household size only if the entire area of
an existing city or town is annexed or consolidated and only if reliable data is available for
all of these factors used to compute city revenue need for the annexing jurisdiction.

new text begin EFFECTIVE DATE. new text end

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

Sec. 90.

Minnesota Statutes 2012, section 611.27, subdivision 13, is amended to read:

Subd. 13.

Public defense services; correctional facility inmates.

All billings
for services rendered and ordered under subdivision 7 shall require the approval of the
chief district public defender before being forwarded on a monthly basis to the state
public defender. In cases where adequate representation cannot be provided by the district
public defender and where counsel has been appointed under a court order, the state
public defender shall forward to the commissioner of management and budget all billings
for services rendered under the court order. The commissioner shall pay for services
from county program aid retained by the commissioner of revenue for that purpose under
section deleted text begin 477A.0124, subdivision 1, clause (4), or deleted text end 477A.03, subdivision 2b, paragraph (a).

The costs of appointed counsel and associated services in cases arising from new
criminal charges brought against indigent inmates who are incarcerated in a Minnesota
state correctional facility are the responsibility of the state Board of Public Defense. In
such cases the state public defender may follow the procedures outlined in this section for
obtaining court-ordered counsel.

new text begin EFFECTIVE DATE. new text end

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

Sec. 91.

Minnesota Statutes 2012, section 611.27, subdivision 15, is amended to read:

Subd. 15.

Costs of transcripts.

In appeal cases and postconviction cases where
the appellate public defender's office does not have sufficient funds to pay for transcripts
and other necessary expenses because it has spent or committed all of the transcript
funds in its annual budget, the state public defender may forward to the commissioner
of management and budget all billings for transcripts and other necessary expenses. The
commissioner shall pay for these transcripts and other necessary expenses from county
program aid retained by the commissioner of revenue for that purpose under section
deleted text begin 477A.0124, subdivision 1, clause (4), or deleted text end 477A.03, subdivision 2b, paragraph (a).

new text begin EFFECTIVE DATE. new text end

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

Sec. 92. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall make all necessary cross-reference changes in
Minnesota Statutes and Minnesota Rules consistent with the amendments and repealers in
this act. The revisor can make changes to sentence structure to preserve the meaning of
the text. The revisor shall make other changes in chapter titles; section, subdivision, part,
and subpart headnotes; and in other terminology necessary as a result of the enactment of
this act. The Department of Revenue shall assist in making these corrections.
new text end

Sec. 93. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 290.01, subdivision 19e; 290.0674,
subdivision 3; and 290.33, new text end new text begin and new text end new text begin Minnesota Rules, part 8007.0200, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11,
subdivision 2; 270C.131; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a,
48, 51, 53, 67, 72, and 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1;
273.03, subdivision 3; 273.075; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173,
subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4;
287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 290C.02, subdivisions 5 and 9;
290C.06; 291.41; 291.42; 291.43; 291.44; 291.45; 291.46; 291.47; 295.52, subdivision 7;
297A.71, subdivisions 4, 5, 7, 10, 17, 18, 20, and 32; 297F.08, subdivision 11; 297H.10,
subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i;
469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, new text end new text begin and new text end new text begin Minnesota
Rules, parts 8002.0200, subpart 8; 8100.0800; 8130.7500, subpart 7; 8130.8900, subpart
3; and 8130.9500, subparts 1, 1a, 2, 3, 4, and 5, new text end new text begin are repealed.
new text end

new text begin (c) new text end new text begin Minnesota Statutes 2012, section 469.1764, new text end new text begin is repealed.
new text end

new text begin (d) new text end new text begin Minnesota Statutes 2012, section 273.1115, new text end new text begin is repealed.
new text end

new text begin (e) new text end new text begin Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision
38; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338;
469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, new text end new text begin and new text end new text begin Minnesota Statutes 2013
Supplement, section 469.340, subdivision 4, new text end new text begin are repealed.
new text end

new text begin (f) new text end new text begin Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective for taxable years beginning after
December 31, 2013.
new text end

new text begin Paragraph (b) is effective the day following final enactment.
new text end

new text begin Paragraph (c) is effective the day following final enactment and any remaining
unexpended tax increments from a district subject to Minnesota Statutes, section 469.1764,
must be distributed as excess increments to the city, county, and school district under
Minnesota Statutes, section 469.176, subdivision 2, paragraph (c), clause (4), on or before
December 31, 2014.
new text end

new text begin Paragraph (d) is effective beginning with property taxes payable in 2015.
new text end

new text begin Paragraph (e) is effective January 1, 2016.
new text end

new text begin Paragraph (f) is effective for taxable years beginning after December 31, 2015.
new text end