SF 2400

3rd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to tax relief; providing a sales tax rebate 
  1.3             payable in 2000; expanding eligibility for the 1999 
  1.4             sales tax rebate; extending certain dates relating to 
  1.5             the 1999 sales tax rebate; providing for a payment to 
  1.6             farmers at risk based on the acreage of agricultural 
  1.7             use land; extending the time for filing for 1999 
  1.8             agricultural assistance aid; appropriating money; 
  1.9             amending Laws 1999, chapters 112, sections 1, 
  1.10            subdivisions 2 and 7; and 2; and 243, article 1, 
  1.11            section 2. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13                             ARTICLE 1 
  1.14                     YEAR 2000 SALES TAX REBATE 
  1.15     Section 1.  [STATEMENT OF PURPOSE.] 
  1.16     (a) The state of Minnesota derives revenues from a variety 
  1.17  of taxes, fees, and other sources, including the state sales tax.
  1.18     (b) It is fair and reasonable to refund the existing state 
  1.19  budget surplus in the form of a rebate of nonbusiness consumer 
  1.20  sales taxes paid by individuals in calendar year 1998. 
  1.21     (c) Information concerning the amount of sales tax paid at 
  1.22  various income levels is contained in the Minnesota tax 
  1.23  incidence report, which is written by the commissioner of 
  1.24  revenue and presented to the legislature according to Minnesota 
  1.25  Statutes, section 270.0682. 
  1.26     (d) It is fair and reasonable to use information contained 
  1.27  in the Minnesota tax incidence report to determine the 
  1.28  proportionate share of the sales tax rebate due each eligible 
  2.1   taxpayer since no effective or practical mechanism exists for 
  2.2   determining the amount of actual sales tax paid by each eligible 
  2.3   individual. 
  2.4      Sec. 2.  [SALES TAX REBATE.] 
  2.5      (a) An individual who: 
  2.6      (1) was eligible for a credit under Laws 1998, chapter 389, 
  2.7   article 1, section 1, and who filed for or received that credit 
  2.8   on or before November 30, 2000; or 
  2.9      (2) was a resident of Minnesota for any part of 1998, and 
  2.10  filed a 1998 Minnesota income tax return on or before November 
  2.11  30, 2000, and had a tax liability before refundable credits on 
  2.12  that return of at least $1 but did not file the claim for credit 
  2.13  authorized under Laws 1998, chapter 389, article 1, section 1, 
  2.14  and who was not allowed to be claimed as a dependent on a 1998 
  2.15  federal income tax return filed by another person; or 
  2.16     (3) had the property taxes payable on his or her homestead 
  2.17  abated to zero under Laws 1998, chapter 383, section 20, 
  2.18  shall receive a sales tax rebate. 
  2.19     (b) The sales tax rebate for taxpayers who qualify under 
  2.20  paragraph (a) as married filing joint or head of household must 
  2.21  be computed according to the following schedule: 
  2.22        Income                            Sales Tax Rebate
  2.23   less than $2,500                              $   91
  2.24   at least $2,500 but less than $5,000          $  118
  2.25   at least $5,000 but less than $10,000         $  126
  2.26   at least $10,000 but less than $15,000        $  138
  2.27   at least $15,000 but less than $20,000        $  150
  2.28   at least $20,000 but less than $25,000        $  163
  2.29   at least $25,000 but less than $30,000        $  170
  2.30   at least $30,000 but less than $35,000        $  184
  2.31   at least $35,000 but less than $40,000        $  201
  2.32   at least $40,000 but less than $45,000        $  216
  2.33   at least $45,000 but less than $50,000        $  227
  2.34   at least $50,000 but less than $60,000        $  242
  2.35   at least $60,000 but less than $70,000        $  259
  2.36   at least $70,000 but less than $80,000        $  285
  3.1    at least $80,000 but less than $90,000        $  306
  3.2    at least $90,000 but less than $100,000       $  338
  3.3    at least $100,000 but less than $120,000      $  366
  3.4    at least $120,000 but less than $140,000      $  401
  3.5    at least $140,000 but less than $160,000      $  433
  3.6    at least $160,000 but less than $180,000      $  464
  3.7    at least $180,000 but less than $200,000      $  493
  3.8    at least $200,000 but less than $400,000      $  630
  3.9    at least $400,000 but less than $600,000      $  829
  3.10   at least $600,000 but less than $800,000      $  995
  3.11   at least $800,000 but less than $1,000,000    $1,140
  3.12   $1,000,000 and over                           $1,500
  3.13     (c) The sales tax rebate for individuals who qualify under 
  3.14  paragraph (a) as single or married filing separately must be 
  3.15  computed according to the following schedule: 
  3.16        Income                                 Sales Tax Rebate
  3.17   less than $2,500                              $   52
  3.18   at least $2,500 but less than $5,000          $   63
  3.19   at least $5,000 but less than $10,000         $   74
  3.20   at least $10,000 but less than $15,000        $  100
  3.21   at least $15,000 but less than $20,000        $  114
  3.22   at least $20,000 but less than $25,000        $  124
  3.23   at least $25,000 but less than $30,000        $  129
  3.24   at least $30,000 but less than $40,000        $  141
  3.25   at least $40,000 but less than $50,000        $  158
  3.26   at least $50,000 but less than $70,000        $  186
  3.27   at least $70,000 but less than $100,000       $  237
  3.28   at least $100,000 but less than $140,000      $  285
  3.29   at least $140,000 but less than $200,000      $  344
  3.30   at least $200,000 but less than $400,000      $  467
  3.31   at least $400,000 but less than $600,000      $  614
  3.32   $600,000 and over                             $  875
  3.33     (d) Individuals who: 
  3.34     (1) were residents of Minnesota in 1998; 
  3.35     (2) attained the age of 18 on or before December 31, 1998; 
  3.36     (3) had qualifying income in 1998; and 
  4.1      (4) do not otherwise qualify for a rebate either 
  4.2   individually or as the spouse of an individual who receives a 
  4.3   rebate on the basis of a married joint filing status, 
  4.4   qualify for a rebate under this paragraph only.  Qualifying 
  4.5   claimants under this paragraph must file a claim for a rebate on 
  4.6   a form prescribed by the commissioner before the later of June 
  4.7   15, 2001, or 30 days after the date of enactment of this act.  
  4.8   The claim must include proof of Minnesota residency, qualifying 
  4.9   income, income tax filing status, and age in 1998.  The 
  4.10  commissioner shall verify the information provided and rebate 
  4.11  the minimum amount for which the claimant would have been 
  4.12  eligible as determined under paragraph (b), as adjusted by 
  4.13  paragraph (p), if the taxpayer would have met the requirements 
  4.14  to file a 1998 federal income tax return as a married taxpayer 
  4.15  filing jointly or head of household, or as determined under 
  4.16  paragraph (c), as adjusted by paragraph (p), for other taxpayers.
  4.17  Qualified claims for rebate under this paragraph not paid by 
  4.18  October 1, 2001, bear interest at the rate specified in 
  4.19  Minnesota Statutes, section 270.75.  As used in this paragraph 
  4.20  only, "qualifying income" means the sum of: 
  4.21     (1) self-employment income subject to the tax under section 
  4.22  1401(b) of the Internal Revenue Code of 1986, as amended through 
  4.23  December 31, 1997; plus 
  4.24     (2) wages subject to tax under section 3101(b) of the 
  4.25  Internal Revenue Code of 1986, as amended through December 31, 
  4.26  1997; plus 
  4.27     (3) amounts described in Minnesota Statutes, section 
  4.28  290A.03, subdivision 3, paragraph (b), clauses (iv), (v), (vi), 
  4.29  (vii), (viii), (ix), (x), and (xii). 
  4.30     As used in this paragraph, "qualifying income" does not 
  4.31  include any compensation paid to inmates at a state, local, or 
  4.32  federal correctional facility as pay for services performed by 
  4.33  the inmate at the facility. 
  4.34     (e) Individuals who were not residents of Minnesota for any 
  4.35  part of 1998 and who paid more than $10 in Minnesota sales tax 
  4.36  under Minnesota Statutes, chapters 297A and 297B, on nonbusiness 
  5.1   consumer purchases in that year qualify for a rebate under this 
  5.2   paragraph only.  Qualifying nonresidents must file a claim for 
  5.3   rebate on a form prescribed by the commissioner before November 
  5.4   30, 2000.  The claim must include receipts showing the Minnesota 
  5.5   sales tax paid and the date of the sale.  Taxes paid on 
  5.6   purchases allowed in the computation of federal taxable income 
  5.7   or reimbursed by an employer are not eligible for the rebate.  
  5.8   The commissioner shall determine the qualifying taxes paid and 
  5.9   rebate the lesser of: 
  5.10     (1) 16.18 percent of that amount; or 
  5.11     (2) the maximum amount for which the claimant would have 
  5.12  been eligible as determined under paragraph (b) if the taxpayer 
  5.13  filed the 1998 federal income tax return as a married taxpayer 
  5.14  filing jointly or head of household, or as determined under 
  5.15  paragraph (c) for other taxpayers. 
  5.16     (f) "Income," for purposes of this section other than 
  5.17  paragraph (e), is taxable income as defined in section 63 of the 
  5.18  Internal Revenue Code of 1986, as amended through December 31, 
  5.19  1997, plus the sum of any additions to federal taxable income 
  5.20  for the taxpayer under Minnesota Statutes, section 290.01, 
  5.21  subdivision 19a, and reported on the original 1998 income tax 
  5.22  return including subsequent adjustments to that return made 
  5.23  within the time limits specified in paragraph (i).  For an 
  5.24  individual who was a resident of Minnesota for less than the 
  5.25  entire year, income as determined under this paragraph must be 
  5.26  multiplied by the percentage determined pursuant to Minnesota 
  5.27  Statutes, section 290.06, subdivision 2c, paragraph (e), as 
  5.28  calculated on the original 1998 income tax return including 
  5.29  subsequent adjustments to that return made within the time 
  5.30  limits specified in paragraph (i).  For purposes of paragraph 
  5.31  (e), "income" is taxable income as defined in section 63 of the 
  5.32  Internal Revenue Code of 1986, as amended through December 31, 
  5.33  1997, and reported on the taxpayer's original federal tax return 
  5.34  for the first taxable year beginning after December 31, 1997. 
  5.35     (g) For a fiscal year taxpayer, the November 30, 2000, 
  5.36  dates in paragraphs (a) through (e) are extended one month for 
  6.1   each month in calendar year 1998 that occurred prior to the 
  6.2   start of the individual's 1998 fiscal tax year. 
  6.3      (h) Sales tax rebates not paid by April 1, 2001, bear 
  6.4   interest at the rate specified in Minnesota Statutes, section 
  6.5   270.75. 
  6.6      (i) A sales tax rebate shall not be adjusted based on 
  6.7   changes to a 1998 income tax return that are made by order of 
  6.8   assessment after June 15, 2000, or made by the taxpayer by 
  6.9   amended return that are filed with the commissioner of revenue 
  6.10  after June 15, 2000. 
  6.11     (j) Individuals who filed a joint income tax return for 
  6.12  1998 shall receive a joint sales tax rebate.  After the sales 
  6.13  tax rebate has been issued, but before the check has been 
  6.14  cashed, either joint claimant may request a separate check for 
  6.15  one-half of the joint sales tax rebate.  Notwithstanding 
  6.16  anything in this section to the contrary, if, prior to payment, 
  6.17  the commissioner has been notified that persons who filed a 
  6.18  joint 1998 income tax return are living at separate addresses, 
  6.19  as indicated on their 1999 income tax return or otherwise, the 
  6.20  commissioner may issue separate checks to each person.  The 
  6.21  amount payable to each person is one-half of the total joint 
  6.22  rebate. 
  6.23     If a rebate is received by the estate of a deceased 
  6.24  individual after the probate estate has been closed, and if the 
  6.25  original rebate check is returned to the commissioner with a 
  6.26  copy of the decree of descent or final account of the estate, 
  6.27  social security numbers, and addresses of the beneficiaries, the 
  6.28  commissioner may issue separate checks in proportion to their 
  6.29  share in the residuary estate in the names of the residuary 
  6.30  beneficiaries of the estate. 
  6.31     (k) The sales tax rebate is a "Minnesota tax law" for 
  6.32  purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
  6.33     (l) The sales tax rebate is "an overpayment of any tax 
  6.34  collected by the commissioner" for purposes of Minnesota 
  6.35  Statutes, section 270.07, subdivision 5.  For purposes of this 
  6.36  paragraph, a joint sales tax rebate is payable to each spouse 
  7.1   equally. 
  7.2      (m) If the commissioner of revenue cannot locate an 
  7.3   individual entitled to a sales tax rebate by July 1, 2002, or if 
  7.4   an individual to whom a sales tax rebate was issued has not 
  7.5   cashed the check by July 1, 2002, the right to the sales tax 
  7.6   rebate lapses and the check must be deposited in the general 
  7.7   fund. 
  7.8      (n) Individuals entitled to a sales tax rebate pursuant to 
  7.9   paragraph (a), but who did not receive one, and individuals who 
  7.10  receive a sales tax rebate that was not correctly computed, must 
  7.11  file a claim with the commissioner before July 1, 2001, in a 
  7.12  form prescribed by the commissioner.  These claims must be 
  7.13  treated as if they are a claim for refund under Minnesota 
  7.14  Statutes, section 289A.50, subdivisions 4 and 7. 
  7.15     (o) The sales tax rebate is a refund subject to revenue 
  7.16  recapture under Minnesota Statutes, chapter 270A.  The 
  7.17  commissioner of revenue shall remit the entire refund to the 
  7.18  claimant agency, which shall, upon the request of the spouse who 
  7.19  does not owe the debt, refund one-half of the joint sales tax 
  7.20  rebate to the spouse who does not owe the debt. 
  7.21     (p) Before payment, the rebates calculated in paragraphs 
  7.22  (b), (c), (d), and (e) must be proportionately reduced to 
  7.23  account for 1998 income tax returns that are filed on or after 
  7.24  January 1, 2000, but before July 1, 2000, so that the amount of 
  7.25  sales tax rebates payable under paragraphs (b), (c), (d), and 
  7.26  (e) does not exceed $453,000,000, less the amount of the rebates 
  7.27  paid under article 2. 
  7.28  The adjustments under this paragraph are not rules subject to 
  7.29  Minnesota Statutes, chapter 14. 
  7.30     (q) The rebate is a reduction of fiscal year 2000 sales tax 
  7.31  revenues.  The amount necessary to make the sales tax rebates 
  7.32  and interest provided in this section is appropriated from the 
  7.33  general fund to the commissioner of revenue in fiscal year 2000 
  7.34  and is available until June 30, 2002. 
  7.35     (r) If a sales tax rebate check is cashed by someone other 
  7.36  than the payee or payees of the check, and the commissioner of 
  8.1   revenue determines that the check has been forged or improperly 
  8.2   endorsed, or the commissioner determines that a rebate was 
  8.3   erroneously issued or overstated, the commissioner may issue an 
  8.4   order of assessment for the amount of the check or the amount 
  8.5   the check is overstated against the person or persons cashing 
  8.6   it.  The assessment must be made within two years after the 
  8.7   check is cashed, but if cashing the check constitutes theft 
  8.8   under Minnesota Statutes, section 609.52, or forgery under 
  8.9   Minnesota Statutes, section 609.631, the assessment can be made 
  8.10  at any time.  The assessment may be appealed administratively 
  8.11  and judicially.  The commissioner may take action to collect the 
  8.12  assessment in the same manner as provided by Minnesota Statutes, 
  8.13  chapter 289A, for any other order of the commissioner assessing 
  8.14  tax. 
  8.15     (s) Notwithstanding Minnesota Statutes, sections 9.031, 
  8.16  16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
  8.17  commissioner of revenue may take whatever actions the 
  8.18  commissioner deems necessary to pay the rebates required by this 
  8.19  section, and may, in consultation with the commissioner of 
  8.20  finance and the state treasurer, contract with a private vendor 
  8.21  or vendors to process, print, and mail the rebate checks or 
  8.22  warrants required under this section and receive and disburse 
  8.23  state funds to pay those checks or warrants. 
  8.24     (t) The commissioner may pay rebates required by this 
  8.25  section by electronic funds transfer to individuals who 
  8.26  requested that their 1999 individual income tax refund be paid 
  8.27  through electronic funds transfer.  The commissioner may make 
  8.28  the electronic funds transfer payments to the same financial 
  8.29  institution and into the same account as the 1999 individual 
  8.30  income tax refund. 
  8.31     (u) For purposes of this section, "resident" has the 
  8.32  meaning given in Minnesota Statutes, section 290.01, subdivision 
  8.33  7. 
  8.34     Sec. 3.  [APPROPRIATION.] 
  8.35     $4,000,000 is appropriated from the general fund to the 
  8.36  commissioner of revenue to be used to pay the costs of 
  9.1   administering section 2 and articles 2 and 3. 
  9.2      Sec. 4.  [EFFECTIVE DATE.] 
  9.3      Sections 1 and 2 are effective the day following final 
  9.4   enactment. 
  9.5                              ARTICLE 2
  9.6                        1999 SALES TAX REBATE
  9.7      Section 1.  Laws 1999, chapter 243, article 1, section 2, 
  9.8   is amended to read: 
  9.9      Sec. 2.  [SALES TAX REBATE.] 
  9.10     (a) An individual who: 
  9.11     (1) was eligible for a credit under Laws 1997, chapter 231, 
  9.12  article 1, section 16, as amended by Laws 1997, First Special 
  9.13  Session chapter 5, section 35, and Laws 1997, Third Special 
  9.14  Session chapter 3, section 11, and Laws 1998, chapter 304, and 
  9.15  Laws 1998, chapter 389, article 1, section 3, and who filed for 
  9.16  or received that credit on or before June 15, 1999 2000; or 
  9.17     (2) was a resident of Minnesota for any part of 1997, and 
  9.18  filed a 1997 Minnesota income tax return on or before June 15, 
  9.19  1999 2000, and had a tax liability before refundable credits on 
  9.20  that return of at least $1 but did not file the claim for credit 
  9.21  authorized under Laws 1997, chapter 231, article 1, section 16, 
  9.22  as amended, and who was not allowed to be claimed as a dependent 
  9.23  on a 1997 federal income tax return filed by another person; or 
  9.24     (3) had the property taxes payable on his or her homestead 
  9.25  abated to zero under Laws 1997, chapter 231, article 2, section 
  9.26  64, 
  9.27  shall receive a sales tax rebate. 
  9.28     (b) The sales tax rebate for taxpayers who qualify under 
  9.29  paragraph (a) as married filing joint or head of household must 
  9.30  be computed according to the following schedule: 
  9.31       Income                             Sales Tax Rebate
  9.32   less than $2,500                              $  358
  9.33   at least $2,500 but less than $5,000          $  469
  9.34   at least $5,000 but less than $10,000         $  502
  9.35   at least $10,000 but less than $15,000        $  549
  9.36   at least $15,000 but less than $20,000        $  604
 10.1    at least $20,000 but less than $25,000        $  641
 10.2    at least $25,000 but less than $30,000        $  690
 10.3    at least $30,000 but less than $35,000        $  762
 10.4    at least $35,000 but less than $40,000        $  820
 10.5    at least $40,000 but less than $45,000        $  874
 10.6    at least $45,000 but less than $50,000        $  921
 10.7    at least $50,000 but less than $60,000        $  969
 10.8    at least $60,000 but less than $70,000        $1,071
 10.9    at least $70,000 but less than $80,000        $1,162
 10.10   at least $80,000 but less than $90,000        $1,276
 10.11   at least $90,000 but less than $100,000       $1,417
 10.12   at least $100,000 but less than $120,000      $1,535
 10.13   at least $120,000 but less than $140,000      $1,682
 10.14   at least $140,000 but less than $160,000      $1,818
 10.15   at least $160,000 but less than $180,000      $1,946
 10.16   at least $180,000 but less than $200,000      $2,067
 10.17   at least $200,000 but less than $400,000      $2,644
 10.18   at least $400,000 but less than $600,000      $3,479
 10.19   at least $600,000 but less than $800,000      $4,175
 10.20   at least $800,000 but less than $1,000,000    $4,785
 10.21   $1,000,000 and over                           $5,000
 10.22     (c) The sales tax rebate for individuals who qualify under 
 10.23  paragraph (a) as single or married filing separately must be 
 10.24  computed according to the following schedule: 
 10.25        Income                                 Sales Tax Rebate
 10.26   less than $2,500                              $  204
 10.27   at least $2,500 but less than $5,000          $  249
 10.28   at least $5,000 but less than $10,000         $  299
 10.29   at least $10,000 but less than $15,000        $  408
 10.30   at least $15,000 but less than $20,000        $  464
 10.31   at least $20,000 but less than $25,000        $  496
 10.32   at least $25,000 but less than $30,000        $  515
 10.33   at least $30,000 but less than $40,000        $  570
 10.34   at least $40,000 but less than $50,000        $  649
 10.35   at least $50,000 but less than $70,000        $  776
 10.36   at least $70,000 but less than $100,000       $  958
 11.1    at least $100,000 but less than $140,000      $1,154
 11.2    at least $140,000 but less than $200,000      $1,394
 11.3    at least $200,000 but less than $400,000      $1,889
 11.4    at least $400,000 but less than $600,000      $2,485
 11.5    $600,000 and over                             $2,500
 11.6      (d) Individuals who were not residents of Minnesota for any 
 11.7   part of 1997 and who paid more than $10 in Minnesota sales tax 
 11.8   on nonbusiness consumer purchases in that year qualify for a 
 11.9   rebate under this paragraph only.  Qualifying nonresidents must 
 11.10  file a claim for rebate on a form prescribed by the commissioner 
 11.11  before the later of June 15, 1999 2000, or 30 days after the 
 11.12  date of enactment of this act.  The claim must include receipts 
 11.13  showing the Minnesota sales tax paid and the date of the sale.  
 11.14  Taxes paid on purchases allowed in the computation of federal 
 11.15  taxable income or reimbursed by an employer are not eligible for 
 11.16  the rebate.  The commissioner shall determine the qualifying 
 11.17  taxes paid and rebate the lesser of: 
 11.18     (1) 69.0 percent of that amount; or 
 11.19     (2) the maximum amount for which the claimant would have 
 11.20  been eligible as determined under paragraph (b) if the taxpayer 
 11.21  filed the 1997 federal income tax return as a married taxpayer 
 11.22  filing jointly or head of household, or as determined under 
 11.23  paragraph (c) for other taxpayers. 
 11.24     (e) "Income," for purposes of this section other than 
 11.25  paragraph (d), is taxable income as defined in section 63 of the 
 11.26  Internal Revenue Code of 1986, as amended through December 31, 
 11.27  1996, plus the sum of any additions to federal taxable income 
 11.28  for the taxpayer under Minnesota Statutes, section 290.01, 
 11.29  subdivision 19a, and reported on the original 1997 income tax 
 11.30  return including subsequent adjustments to that return made 
 11.31  within the time limits specified in paragraph (h).  For an 
 11.32  individual who was a resident of Minnesota for less than the 
 11.33  entire year, the sales tax rebate equals the sales tax rebate 
 11.34  calculated under paragraph (b) or (c) income as determined under 
 11.35  this paragraph must be multiplied by the percentage determined 
 11.36  pursuant to Minnesota Statutes, section 290.06, subdivision 2c, 
 12.1   paragraph (e), as calculated on the original 1997 income tax 
 12.2   return including subsequent adjustments to that return made 
 12.3   within the time limits specified in paragraph (h).  For purposes 
 12.4   of paragraph (d), "income" is taxable income as defined in 
 12.5   section 63 of the Internal Revenue Code of 1986, as amended 
 12.6   through December 31, 1996, and reported on the taxpayer's 
 12.7   original federal tax return for the first taxable year beginning 
 12.8   after December 31, 1996. 
 12.9      (f) For a fiscal year taxpayer, the June 15, 1999, dates in 
 12.10  paragraphs (a) through (d) are extended one month for each month 
 12.11  in calendar year 1997 that occurred prior to the start of the 
 12.12  individual's 1997 fiscal tax year. 
 12.13     (g) Before payment, the commissioner of revenue shall 
 12.14  adjust the rebate as follows: 
 12.15     (1) the rebates calculated in paragraphs (b), (c), and (d) 
 12.16  must be proportionately reduced to account for 1997 income tax 
 12.17  returns that are filed on or after January 1, 1999, but before 
 12.18  July 1, 1999, so that the amount of sales tax rebates payable 
 12.19  under paragraphs (b), (c), and (d) does not exceed 
 12.20  $1,250,000,000; and 
 12.21     (2) the commissioner of finance shall certify by July 15, 
 12.22  1999, preliminary fiscal year 1999 general fund net nondedicated 
 12.23  revenues.  The certification shall exclude the impact of any 
 12.24  legislation enacted during the 1999 regular session.  If 
 12.25  certified net nondedicated revenues exceed the amount forecast 
 12.26  in February 1999, up to $50,000,000 of the increase shall be 
 12.27  added to the total amount rebated.  The commissioner of revenue 
 12.28  shall adjust all rebates proportionally to reflect any 
 12.29  increases.  The total amount of the rebate shall not exceed 
 12.30  $1,300,000,000. 
 12.31  The adjustments under this paragraph are not rules subject to 
 12.32  Minnesota Statutes, chapter 14. 
 12.33     (g) (h) The commissioner of revenue may begin making sales 
 12.34  tax rebates by August 1, 1999.  Sales tax rebates not paid by 
 12.35  October 1, 1999, bear interest at the rate specified in 
 12.36  Minnesota Statutes, section 270.75.  Sales tax rebates paid to: 
 13.1      (1) taxpayers who file their original 1997 Minnesota income 
 13.2   tax return after June 15, 1999; 
 13.3      (2) individuals qualifying under paragraph (s); and 
 13.4      (3) qualifying nonresidents who file a claim for rebate 
 13.5   after June 15, 1999, 
 13.6   bear interest at the rate specified in Minnesota Statutes, 
 13.7   section 270.75, beginning October 1, 2000. 
 13.8      (h) (i) A sales tax rebate shall not be adjusted based on 
 13.9   changes to a 1997 income tax return that are made by order of 
 13.10  assessment after June 15, 1999, or made by the taxpayer that are 
 13.11  filed with the commissioner of revenue after June 15, 1999. 
 13.12     (i) (j) Individuals who filed a joint income tax return for 
 13.13  1997 shall receive a joint sales tax rebate.  After the sales 
 13.14  tax rebate has been issued, but before the check has been 
 13.15  cashed, either joint claimant may request a separate check for 
 13.16  one-half of the joint sales tax rebate.  Notwithstanding 
 13.17  anything in this section to the contrary, if prior to payment, 
 13.18  the commissioner has been notified that persons who filed a 
 13.19  joint 1997 income tax return are living at separate addresses, 
 13.20  as indicated on their 1998 income tax return or otherwise, the 
 13.21  commissioner may issue separate checks to each person.  The 
 13.22  amount payable to each person is one-half of the total joint 
 13.23  rebate.  If a rebate is received by the estate of a deceased 
 13.24  individual after the probate estate has been closed, and if the 
 13.25  original rebate check is returned to the commissioner with a 
 13.26  copy of the decree of descent or final account of the estate, 
 13.27  social security numbers, and addresses of the beneficiaries, the 
 13.28  commissioner may issue separate checks in proportion to their 
 13.29  share in the residuary estate in the names of the residuary 
 13.30  beneficiaries of the estate. 
 13.31     (j) (k) The sales tax rebate is a "Minnesota tax law" for 
 13.32  purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
 13.33     (k) (l) The sales tax rebate is "an overpayment of any tax 
 13.34  collected by the commissioner" for purposes of Minnesota 
 13.35  Statutes, section 270.07, subdivision 5.  For purposes of this 
 13.36  paragraph, a joint sales tax rebate is payable to each spouse 
 14.1   equally. 
 14.2      (l) (m) If the commissioner of revenue cannot locate an 
 14.3   individual entitled to a sales tax rebate by July 1, 2001, or if 
 14.4   an individual to whom a sales tax rebate was issued has not 
 14.5   cashed the check by July 1, 2001, the right to the sales tax 
 14.6   rebate lapses and the check must be deposited in the general 
 14.7   fund. 
 14.8      (m) (n) Individuals entitled to a sales tax rebate pursuant 
 14.9   to paragraph (a), but who did not receive one, and individuals 
 14.10  who receive a sales tax rebate that was not correctly computed, 
 14.11  must file a claim with the commissioner before July 1, 2000, in 
 14.12  a form prescribed by the commissioner.  Taxpayers who file their 
 14.13  original 1997 Minnesota income tax return after June 15, 1999, 
 14.14  and qualifying nonresidents who file a claim for rebate after 
 14.15  June 15, 1999, and who do not receive it or who receive a sales 
 14.16  tax rebate that was not correctly computed, must file a claim 
 14.17  with the commissioner before July 1, 2001, in a form prescribed 
 14.18  by the commissioner.  These claims must be treated as if they 
 14.19  are a claim for refund under Minnesota Statutes, section 
 14.20  289A.50, subdivisions 4 and 7. 
 14.21     (n) (o) The sales tax rebate is a refund subject to revenue 
 14.22  recapture under Minnesota Statutes, chapter 270A.  The 
 14.23  commissioner of revenue shall remit the entire refund to the 
 14.24  claimant agency, which shall, upon the request of the spouse who 
 14.25  does not owe the debt, refund one-half of the joint sales tax 
 14.26  rebate to the spouse who does not owe the debt. 
 14.27     (o) (p) The rebate is a reduction of fiscal year 1999 sales 
 14.28  tax revenues.  The amount necessary to make the sales tax 
 14.29  rebates and interest provided in this section is appropriated 
 14.30  from the general fund to the commissioner of revenue in fiscal 
 14.31  year 1999 and is available until June 30, 2001. 
 14.32     (p) (q) If a sales tax rebate check is cashed by someone 
 14.33  other than the payee or payees of the check, and the 
 14.34  commissioner of revenue determines that the check has been 
 14.35  forged or improperly endorsed or the commissioner determines 
 14.36  that a rebate was overstated or erroneously issued, the 
 15.1   commissioner may issue an order of assessment for the amount of 
 15.2   the check or the amount the check is overstated against the 
 15.3   person or persons cashing it.  The assessment must be made 
 15.4   within two years after the check is cashed, but if cashing the 
 15.5   check constitutes theft under Minnesota Statutes, section 
 15.6   609.52, or forgery under Minnesota Statutes, section 609.631, 
 15.7   the assessment can be made at any time.  The assessment may be 
 15.8   appealed administratively and judicially.  The commissioner may 
 15.9   take action to collect the assessment in the same manner as 
 15.10  provided by Minnesota Statutes, chapter 289A, for any other 
 15.11  order of the commissioner assessing tax. 
 15.12     (q) (r) Notwithstanding Minnesota Statutes, sections 9.031, 
 15.13  16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
 15.14  commissioner of revenue may take whatever actions the 
 15.15  commissioner deems necessary to pay the rebates required by this 
 15.16  section, and may, in consultation with the commissioner of 
 15.17  finance and the state treasurer, contract with a private vendor 
 15.18  or vendors to process, print, and mail the rebate checks or 
 15.19  warrants required under this section and receive and disburse 
 15.20  state funds to pay those checks or warrants. 
 15.21     (r) (s) The commissioner may pay rebates required by this 
 15.22  section by electronic funds transfer to individuals who 
 15.23  requested that their 1998 individual income tax refund be paid 
 15.24  through electronic funds transfer.  The commissioner may make 
 15.25  the electronic funds transfer payments to the same financial 
 15.26  institution and into the same account as the 1998 individual 
 15.27  income tax refund. 
 15.28     (t) Individuals who: 
 15.29     (1) were residents of Minnesota in 1997; 
 15.30     (2) attained the age of 18 on or before December 31, 1997; 
 15.31     (3) had qualifying income in 1997; and 
 15.32     (4) do not otherwise qualify for a rebate either 
 15.33  individually or as the spouse of an individual who receives a 
 15.34  rebate on the basis of a married joint filing status, 
 15.35  qualify for a rebate under this paragraph only.  Qualifying 
 15.36  claimants under this paragraph must file a claim for a rebate on 
 16.1   a form prescribed by the commissioner before the later of June 
 16.2   15, 2000, or 30 days after the date of enactment of this act.  
 16.3   The claim must include proof of Minnesota residency, qualifying 
 16.4   income, income tax filing status, and age in 1997.  The 
 16.5   commissioner shall verify the information provided and rebate 
 16.6   the minimum amount for which the claimant would have been 
 16.7   eligible as determined under paragraph (b), as adjusted by 
 16.8   paragraph (f), if the taxpayer would have met the requirements 
 16.9   to file a 1997 federal income tax return as a married taxpayer 
 16.10  filing jointly or head of household, or as determined under 
 16.11  paragraph (c), as adjusted by paragraph (f), for other taxpayers.
 16.12  Qualified claims for rebate under this paragraph not paid by 
 16.13  October 1, 2000, bear interest at the rate specified in 
 16.14  Minnesota Statutes, section 270.75.  As used in this paragraph 
 16.15  only, "qualifying income" means the sum of: 
 16.16     (1) self-employment income subject to the tax under section 
 16.17  1401(b) of the Internal Revenue Code of 1986, as amended through 
 16.18  December 31, 1997; plus 
 16.19     (2) wages subject to tax under section 3101(b) of the 
 16.20  Internal Revenue Code of 1986, as amended through December 31, 
 16.21  1997; plus 
 16.22     (3) amounts described in Minnesota Statutes, section 
 16.23  290A.03, subdivision 3, paragraph (b), clauses (iv), (v), (vi), 
 16.24  (vii), (viii), (ix), (x), and (xii). 
 16.25     As used in this paragraph, "qualifying income" does not 
 16.26  include any compensation paid to inmates at a state, local, or 
 16.27  federal correctional facility as pay for services performed by 
 16.28  the inmate at the facility. 
 16.29     Sec. 2.  [APPLICATION OF LAW.] 
 16.30     The limitation on the total amount of rebates in Laws 1999, 
 16.31  chapter 243, article 1, section 2, paragraph (f), does not apply 
 16.32  to rebates issued under section 1.  To the extent applicable, 
 16.33  all other provisions of Laws 1999, chapter 243, article 1, 
 16.34  section 2, apply to the rebates paid under section 1.  
 16.35     Sec. 3.  [APPROPRIATION.] 
 16.36     The amount necessary to pay the rebates under section 1 is 
 17.1   appropriated from the general fund to the commissioner of 
 17.2   revenue for fiscal years 2000 and 2001. 
 17.3      Sec. 4.  [EFFECTIVE DATE.] 
 17.4      Sections 1 to 3 are effective the day following final 
 17.5   enactment. 
 17.6                              ARTICLE 3
 17.7                       AGRICULTURAL ASSISTANCE 
 17.8      Section 1.  Laws 1999, chapter 112, section 1, subdivision 
 17.9   2, is amended to read: 
 17.10     Subd. 2.  [PAYMENT TO FARMERS.] Every farm operator may 
 17.11  apply on a separate form for each farm that they operate to the 
 17.12  commissioner for payments as provided under this subdivision.  
 17.13  The payment shall be made to each farmer at risk for a farm 
 17.14  operation and shall equal $4, multiplied by the number of acres 
 17.15  of the farm operation, multiplied by the percentage of the risk 
 17.16  borne by that farmer for that farm operation.  If total payments 
 17.17  for a farm to all farmers at risk for that farm would exceed 
 17.18  $5,600, the payment to each farmer at risk shall be prorated so 
 17.19  that the total payments to all farmers at risk for that farm do 
 17.20  not exceed $5,600. 
 17.21     Applications shall be based on information reported to the 
 17.22  farm service agency for crop year 1998 by December 31, 1998.  
 17.23  The applications shall include the social security number or 
 17.24  federal employer identification number or a producer number 
 17.25  assigned by the farm service agency for each farmer and the farm 
 17.26  service agency farm number from form 156EZ.  The commissioner 
 17.27  shall prepare application forms for the payment and ensure that 
 17.28  they are available throughout the state.  The commissioner shall 
 17.29  make payments by June 30, 1999, to each eligible farmer who 
 17.30  applies by May 31, 1999, or within 30 days of the application if 
 17.31  the application is received after May 31, 1999.  In no case will 
 17.32  applications be accepted after September June 30, 1999 2000. 
 17.33     Sec. 2.  Laws 1999, chapter 112, section 1, subdivision 7, 
 17.34  is amended to read: 
 17.35     Subd. 7.  [CERTIFICATION AND PAYMENT.] Any person eligible 
 17.36  for the refund under subdivisions 4 to 8 shall send the 
 18.1   commissioner a copy of the certification that the taxpayer 
 18.2   received from the county auditor.  In no case will applications 
 18.3   be accepted after November June 30, 1999 2000.  The commissioner 
 18.4   shall issue a refund by July 15, 1999, to each qualifying 
 18.5   taxpayer who applied by June 15, 1999, or within 30 days of 
 18.6   receipt of the application if received after June 15, 1999. 
 18.7      Sec. 3.  Laws 1999, chapter 112, section 2, is amended to 
 18.8   read: 
 18.9      Sec. 2.  [APPROPRIATION.] 
 18.10     (a) The amount necessary to fund the payments required 
 18.11  under section 1, subdivisions 2 and 7, is appropriated in fiscal 
 18.12  year years 1999 and 2000 from the general fund to the 
 18.13  commissioner of revenue.  This appropriation is available 
 18.14  until June 30 December 31, 2000. 
 18.15     (b) $68,000 is appropriated in fiscal year 1999 to the 
 18.16  commissioner of revenue for distribution to counties for the 
 18.17  costs of administering section 1, subdivisions 4 to 8.  This 
 18.18  appropriation is available until June 30, 2000.  The 
 18.19  distribution to counties shall be based on the number of refunds 
 18.20  received under the provisions of section 1, subdivisions 4 to 8. 
 18.21     Sec. 4.  [AGRICULTURAL ASSISTANCE IN 2000.] 
 18.22     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 18.23  subdivision apply to this section. 
 18.24     (b) "Acre" means an acre of effective agricultural use land 
 18.25  within the state of Minnesota as reported to the Farm Service 
 18.26  Agency on form 156EZ. 
 18.27     (c) "Commissioner" means the commissioner of revenue. 
 18.28     (d) "Disaster county" means a county in Minnesota that: 
 18.29     (1) received a presidential major disaster declaration in 
 18.30  1999; or 
 18.31     (2) was named as a contiguous county under a presidential 
 18.32  major disaster declaration in 1999. 
 18.33     (e) "Effective agricultural use land" means land suitable 
 18.34  for growing an agricultural crop and excludes land enrolled in 
 18.35  the conservation reserve program established by Minnesota 
 18.36  Statutes, section 103F.515, or the water bank program 
 19.1   established by Minnesota Statutes, section 103F.601. 
 19.2      (f) "Farm" or "farm operation" means an agricultural 
 19.3   production operation located wholly or in part within a disaster 
 19.4   county that: 
 19.5      (1) has a unique farm number as reported on form 156EZ to 
 19.6   the Farm Service Agency and includes at least 40 acres of 
 19.7   effective agricultural use land; or 
 19.8      (2) has produced at least $10,000 in sales of unprocessed 
 19.9   livestock or unprocessed dairy products as reported on schedule 
 19.10  F or form 1065, 1120, or 1120S of the farmer's federal income 
 19.11  tax return for the taxable year beginning in either calendar 
 19.12  year 1998 or 1999. 
 19.13     (g) "Farm operator" means a person who is identified as the 
 19.14  operator of a farm on form 156EZ filed with the Farm Service 
 19.15  Agency, provided that if both spouses in a married couple are so 
 19.16  identified, only one will be deemed to be a farm operator for 
 19.17  purposes of this article.  
 19.18     (h) "Farm Service Agency" means the United States 
 19.19  Department of Agriculture, Farm Service Agency. 
 19.20     (i) "Farmer" or "farmer at risk" means a person who: 
 19.21     (1) produces an agricultural crop or livestock and is 
 19.22  reported to the Farm Service Agency as bearing a percentage of 
 19.23  the risk for the farm operation; or 
 19.24     (2) owns or resides on property homesteaded under Minnesota 
 19.25  Statutes, section 273.124, subdivision 1, paragraph (c), and 
 19.26  operates a livestock production facility. 
 19.27     (j) "Livestock" means cattle, hogs, poultry, and sheep. 
 19.28     (k) "Person" includes individuals, fiduciaries, estates, 
 19.29  trusts, partnerships, joint ventures, and corporations. 
 19.30     Subd. 2.  [PAYMENT TO FARMERS.] (a) A farm operator may 
 19.31  apply on a separate form for each farm that the person operates 
 19.32  to the commissioner for payments as provided under this 
 19.33  subdivision.  The payment must be made to each farmer at risk 
 19.34  for a farm operation and must equal $4, multiplied by the number 
 19.35  of acres of the farm operation, multiplied by the percentage of 
 19.36  the risk borne by that farmer for that farm operation. 
 20.1      (b) Applications must be based on information reported to 
 20.2   the Farm Service Agency for crop year 1999, by December 31, 
 20.3   1999, and must include the social security number or federal 
 20.4   employer identification number, or a producer number assigned by 
 20.5   the Farm Service Agency for each farmer and the Farm Service 
 20.6   Agency farm number from form 156EZ.  The commissioner shall 
 20.7   prepare application forms for the payment and ensure that they 
 20.8   are available throughout the state.  The commissioner shall make 
 20.9   payments by June 30, 2000, to each eligible farmer who applies 
 20.10  by May 31, 2000, or within 30 days of the application if the 
 20.11  application is received after May 31, 2000.  In no case will 
 20.12  applications be accepted after September 30, 2000. 
 20.13     Subd. 3.  [ALTERNATE QUALIFICATION.] (a) If an agricultural 
 20.14  production operation does not meet the definition of a farm 
 20.15  under subdivision 1 solely because: 
 20.16     (1) the farm operator had not filed a form 156EZ with the 
 20.17  Farm Service Agency; 
 20.18     (2) there was an error in the Farm Service Agency's 
 20.19  records; or 
 20.20     (3) an operator operates more than one farm and the acres 
 20.21  of effective agricultural use land of a farm is less than 40 
 20.22  acres, but the combined acres of effective agricultural use land 
 20.23  of all land operated by that operator is at least 40 acres, 
 20.24  the commissioner may allow the farm operator to apply for 
 20.25  payment under subdivision 2 after providing the information the 
 20.26  commissioner requires to determine the number of acres that 
 20.27  would be comparable to the effective agricultural use land 
 20.28  listed on form 156EZ. 
 20.29     (b) If the number of acres of effective agricultural use 
 20.30  land for crop year 1999 for a farm is greater than indicated in 
 20.31  the Farm Service Agency's records, the commissioner may allow a 
 20.32  farm operator to apply for payment on the greater acreage after 
 20.33  providing the information the commissioner requires. 
 20.34     (c) If a person who produced an agricultural crop or 
 20.35  livestock in 1999 and bore a portion of the risk for the farm 
 20.36  operation does not meet the definition of a farmer under 
 21.1   subdivision 1 solely because that information was not reported 
 21.2   to the Farm Service Agency or because there was an error in the 
 21.3   Farm Service Agency's records, the commissioner may allow the 
 21.4   farmer to be included on an application for payment under 
 21.5   subdivision 2 after the farmer provides the information the 
 21.6   commissioner requires to determine the farmer was at risk for 
 21.7   that farm. 
 21.8      Subd. 4.  [LIMIT.] No person and no married couple may 
 21.9   receive a payment under subdivision 2 that exceeds $5,600. 
 21.10     Subd. 5.  [APPLICATION OF OTHER LAWS.] The payments under 
 21.11  subdivision 2 are a "Minnesota tax law" for purposes of 
 21.12  Minnesota Statutes, section 270B.01, subdivision 8. 
 21.13     Subd. 6.  [REMEDIES.] A farmer denied a payment under 
 21.14  subdivision 2 may appeal that denial under Minnesota Statutes, 
 21.15  section 289A.50, subdivision 7. 
 21.16     Subd. 7.  [INTEREST.] Payments under subdivision 2 bear 
 21.17  interest at the rate specified in Minnesota Statutes, section 
 21.18  289A.55, subdivision 1, from the later of the payment dates 
 21.19  specified under subdivision 2 or 75 days after a complete 
 21.20  payment application was filed with the commissioner. 
 21.21     Subd. 8.  [PENALTIES.] If the commissioner determines that 
 21.22  claims for payments under subdivision 2 are or were excessive 
 21.23  and were filed with fraudulent intent, the claim must be 
 21.24  disallowed in full.  If the claim has been paid, the amount 
 21.25  disallowed must be recovered by assessment and collection under 
 21.26  Minnesota Statutes, chapter 289A.  The assessment must be made 
 21.27  within two years after a check is cashed, but if cashing a check 
 21.28  constitutes theft under Minnesota Statutes, section 609.52, or 
 21.29  forgery under Minnesota Statutes, section 609.631, the 
 21.30  assessment may be made at any time.  The assessment may be 
 21.31  appealed administratively and judicially. 
 21.32     Sec. 5.  [APPROPRIATION.] 
 21.33     The amount necessary to fund the payments required under 
 21.34  section 4, subdivision 2, is appropriated in fiscal year 2000 
 21.35  from the general fund to the commissioner of revenue.  This 
 21.36  appropriation is available until June 30, 2001. 
 22.1      Sec. 6.  [EFFECTIVE DATE.] 
 22.2      Sections 1 to 5 are effective the day following final 
 22.3   enactment.