SF 3030

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing a sales tax rebate; 
  1.3             reducing class rates on the first tier of commercial 
  1.4             industrial property and increasing the market value 
  1.5             qualifying for the first tier class rate; reducing the 
  1.6             class rate on certain apartments; providing an HACA 
  1.7             offset; increasing the education agricultural credit; 
  1.8             providing a personal and dependent income tax 
  1.9             subtraction; exempting sales to political subdivisions 
  1.10            from the sales tax; appropriating money; amending 
  1.11            Minnesota Statutes 1998, section 297A.47; Minnesota 
  1.12            Statutes 1999 Supplement, sections 273.13, 
  1.13            subdivisions 24 and 25; 273.1382, subdivision 1b; 
  1.14            273.1398, subdivision 1a; 290.01, subdivision 19b; and 
  1.15            297A.25, subdivision 11. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17                             ARTICLE 1 
  1.18                            PROPERTY TAX 
  1.19     Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.20  273.13, subdivision 24, is amended to read: 
  1.21     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
  1.22  property and utility real and personal property is class 3a.  
  1.23  Each parcel of real property has a class rate of 2.4 2.0 percent 
  1.24  of the first tier of market value, and 3.4 percent of the 
  1.25  remaining market value, except that in the case of contiguous 
  1.26  parcels of property owned by the same person or entity, only the 
  1.27  value equal to the first-tier value of the contiguous parcels 
  1.28  qualifies for the reduced class rate.  For the purposes of this 
  1.29  subdivision, the first tier means the first $150,000 $350,000 of 
  1.30  market value.  Real property owned in fee by a utility for 
  2.1   transmission line right-of-way shall be classified at the class 
  2.2   rate for the higher tier.  All personal property shall be 
  2.3   classified at the class rate for the higher tier.  For purposes 
  2.4   of this subdivision "personal property" means tools, implements, 
  2.5   and machinery of an electric generating, transmission, or 
  2.6   distribution system, or a pipeline system transporting or 
  2.7   distributing water, gas, crude oil, or petroleum products or 
  2.8   mains and pipes used in the distribution of steam or hot or 
  2.9   chilled water for heating or cooling buildings, which are 
  2.10  fixtures. 
  2.11     For purposes of this paragraph, parcels are considered to 
  2.12  be contiguous even if they are separated from each other by a 
  2.13  road, street, vacant lot, waterway, or other similar intervening 
  2.14  type of property. 
  2.15     (b) Employment property defined in section 469.166, during 
  2.16  the period provided in section 469.170, shall constitute class 
  2.17  3b.  The class rates for class 3b property are determined under 
  2.18  paragraph (a). 
  2.19     (c)(1) Subject to the limitations of clause (2), structures 
  2.20  which are (i) located on property classified as class 3a, (ii) 
  2.21  constructed under an initial building permit issued after 
  2.22  January 2, 1996, (iii) located in a transit zone as defined 
  2.23  under section 473.3915, subdivision 3, (iv) located within the 
  2.24  boundaries of a school district, and (v) not primarily used for 
  2.25  retail or transient lodging purposes, shall have a class rate 
  2.26  equal to the lesser of 2.975 percent or the class rate of the 
  2.27  second tier of the commercial property rate under paragraph (a) 
  2.28  on any portion of the market value that does not qualify for the 
  2.29  first tier class rate under paragraph (a).  As used in item (v), 
  2.30  a structure is primarily used for retail or transient lodging 
  2.31  purposes if over 50 percent of its square footage is used for 
  2.32  those purposes.  A class rate equal to the lesser of 2.975 
  2.33  percent or the class rate of the second tier of the commercial 
  2.34  property class rate under paragraph (a) shall also apply to 
  2.35  improvements to existing structures that meet the requirements 
  2.36  of items (i) to (v) if the improvements are constructed under an 
  3.1   initial building permit issued after January 2, 1996, even if 
  3.2   the remainder of the structure was constructed prior to January 
  3.3   2, 1996.  For the purposes of this paragraph, a structure shall 
  3.4   be considered to be located in a transit zone if any portion of 
  3.5   the structure lies within the zone.  If any property once 
  3.6   eligible for treatment under this paragraph ceases to remain 
  3.7   eligible due to revisions in transit zone boundaries, the 
  3.8   property shall continue to receive treatment under this 
  3.9   paragraph for a period of three years. 
  3.10     (2) This clause applies to any structure qualifying for the 
  3.11  transit zone reduced class rate under clause (1) on January 2, 
  3.12  1999, or any structure meeting any of the qualification criteria 
  3.13  in item (i) and otherwise qualifying for the transit zone 
  3.14  reduced class rate under clause (1).  Such a structure continues 
  3.15  to receive the transit zone reduced class rate until the 
  3.16  occurrence of one of the events in item (ii).  Property 
  3.17  qualifying under item (i)(D), that is located outside of a city 
  3.18  of the first class, qualifies for the transit zone reduced class 
  3.19  rate as provided in that item.  Property qualifying under item 
  3.20  (i)(E) qualifies for the transit zone reduced class rate as 
  3.21  provided in that item. 
  3.22     (i) A structure qualifies for the rate in this clause if it 
  3.23  is: 
  3.24     (A) property for which a building permit was issued before 
  3.25  December 31, 1998; or 
  3.26     (B) property for which a building permit was issued before 
  3.27  June 30, 2001, if: 
  3.28     (I) at least 50 percent of the land on which the structure 
  3.29  is to be built has been acquired or is the subject of signed 
  3.30  purchase agreements or signed options as of March 15, 1998, by 
  3.31  the entity that proposes construction of the project or an 
  3.32  affiliate of the entity; 
  3.33     (II) signed agreements have been entered into with one 
  3.34  entity or with affiliated entities to lease for the account of 
  3.35  the entity or affiliated entities at least 50 percent of the 
  3.36  square footage of the structure or the owner of the structure 
  4.1   will occupy at least 50 percent of the square footage of the 
  4.2   structure; and 
  4.3      (III) one of the following requirements is met: 
  4.4      the project proposer has submitted the completed data 
  4.5   portions of an environmental assessment worksheet by December 
  4.6   31, 1998; or 
  4.7      a notice of determination of adequacy of an environmental 
  4.8   impact statement has been published by April 1, 1999; or 
  4.9      an alternative urban areawide review has been completed by 
  4.10  April 1, 1999; or 
  4.11     (C) property for which a building permit is issued before 
  4.12  July 30, 1999, if: 
  4.13     (I) at least 50 percent of the land on which the structure 
  4.14  is to be built has been acquired or is the subject of signed 
  4.15  purchase agreements as of March 31, 1998, by the entity that 
  4.16  proposes construction of the project or an affiliate of the 
  4.17  entity; 
  4.18     (II) a signed agreement has been entered into between the 
  4.19  building developer and a tenant to lease for its own account at 
  4.20  least 200,000 square feet of space in the building; 
  4.21     (III) a signed letter of intent is entered into by July 1, 
  4.22  1998, between the building developer and the tenant to lease the 
  4.23  space for its own account; and 
  4.24     (IV) the environmental review process required by state law 
  4.25  was commenced by December 31, 1998; 
  4.26     (D) property for which an irrevocable letter of credit with 
  4.27  a housing and redevelopment authority was signed before December 
  4.28  31, 1998.  The structure shall receive the transit zone reduced 
  4.29  class rate during construction and for the duration of time that 
  4.30  the original tenants remain in the building.  Any unoccupied net 
  4.31  leasable square footage that is not leased within 36 months 
  4.32  after the certificate of occupancy has been issued for the 
  4.33  building shall not be eligible to receive the reduced class 
  4.34  rate.  This reduced class rate applies only if the entity that 
  4.35  constructed the structure continues to own the property; 
  4.36     (E) property, located in a city of the first class, and for 
  5.1   which the building permits for the excavation, the parking ramp, 
  5.2   and the office tower were issued prior to April 1, 1999, shall 
  5.3   receive the reduced class rate during construction and for the 
  5.4   first five assessment years immediately following its initial 
  5.5   occupancy provided that, when completed, at least 25 percent of 
  5.6   the net leasable square footage must be occupied by the entity 
  5.7   or the parent entity constructing the structure each year during 
  5.8   this time period.  In order to receive the reduced class rate on 
  5.9   the structure in any subsequent assessment years, at least 50 
  5.10  percent of the rentable square footage must be occupied by the 
  5.11  entity or the parent entity that constructed the structure.  
  5.12  This reduced class rate applies only if the entity or the parent 
  5.13  entity that constructed the structure continues to own the 
  5.14  property. 
  5.15     (ii) A structure specified by this clause, other than a 
  5.16  structure qualifying under clause (i)(D) or (E), shall continue 
  5.17  to receive the transit zone reduced class rate until the 
  5.18  occurrence of one of the following events: 
  5.19     (A) if the structure upon initial occupancy will be owner 
  5.20  occupied by the entity initially constructing the structure or 
  5.21  an affiliated entity, the structure receives the reduced class 
  5.22  rate until the structure ceases to be at least 50 percent 
  5.23  occupied by the entity or an affiliated entity, provided, if the 
  5.24  portion of the structure occupied by that entity or an affiliate 
  5.25  of the entity is less than 85 percent, the transit zone class 
  5.26  rate reduction for the portion of structure not so occupied 
  5.27  terminates upon the leasing of such space to any nonaffiliated 
  5.28  entity; or 
  5.29     (B) if the structure is leased by a single entity or 
  5.30  affiliated entity at the time of initial occupancy, the 
  5.31  structure shall receive the reduced class rate until the 
  5.32  structure ceases to be at least 50 percent occupied by the 
  5.33  entity or an affiliated entity, provided, if the portion of the 
  5.34  structure occupied by that entity or an affiliate of the entity 
  5.35  is less than 85 percent, the transit zone class rate reduction 
  5.36  for the portion of structure not so occupied shall terminate 
  6.1   upon the leasing of such space to any nonaffiliated entity; or 
  6.2      (C) if the structure meets the criteria in item (i)(C), the 
  6.3   structure shall receive the reduced class rate until the 
  6.4   expiration of the initial lease term of the applicable tenants. 
  6.5      Percentages occupied or leased shall be determined based 
  6.6   upon net leasable square footage in the structure.  The assessor 
  6.7   shall allocate the value of the structure in the same fashion as 
  6.8   provided in the general law for portions of any structure 
  6.9   receiving and not receiving the transit tax class reduction as a 
  6.10  result of this clause. 
  6.11     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  6.12  273.13, subdivision 25, is amended to read: 
  6.13     Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
  6.14  estate containing four or more units and used or held for use by 
  6.15  the owner or by the tenants or lessees of the owner as a 
  6.16  residence for rental periods of 30 days or more.  Class 4a also 
  6.17  includes hospitals licensed under sections 144.50 to 144.56, 
  6.18  other than hospitals exempt under section 272.02, and contiguous 
  6.19  property used for hospital purposes, without regard to whether 
  6.20  the property has been platted or subdivided.  Class 4a property 
  6.21  in a city with a population of 5,000 or less, that is (1) 
  6.22  located outside of the metropolitan area, as defined in section 
  6.23  473.121, subdivision 2, or outside any county contiguous to the 
  6.24  metropolitan area, and (2) whose city boundary is at least 15 
  6.25  miles from the boundary of any city with a population greater 
  6.26  than 5,000 has a class rate of 2.15 percent of market value.  
  6.27  All other Class 4a property has a class rate of 2.4 2.0 percent 
  6.28  of market value.  For purposes of this paragraph, population has 
  6.29  the same meaning given in section 477A.011, subdivision 3. 
  6.30     (b) Class 4b includes: 
  6.31     (1) residential real estate containing less than four units 
  6.32  that does not qualify as class 4bb, other than seasonal 
  6.33  residential, and recreational; 
  6.34     (2) manufactured homes not classified under any other 
  6.35  provision; 
  6.36     (3) a dwelling, garage, and surrounding one acre of 
  7.1   property on a nonhomestead farm classified under subdivision 23, 
  7.2   paragraph (b) containing two or three units; 
  7.3      (4) unimproved property that is classified residential as 
  7.4   determined under subdivision 33.  
  7.5      Class 4b property has a class rate of 1.65 percent of 
  7.6   market value.  
  7.7      (c) Class 4bb includes: 
  7.8      (1) nonhomestead residential real estate containing one 
  7.9   unit, other than seasonal residential, and recreational; and 
  7.10     (2) a single family dwelling, garage, and surrounding one 
  7.11  acre of property on a nonhomestead farm classified under 
  7.12  subdivision 23, paragraph (b). 
  7.13     Class 4bb has a class rate of 1.2 percent on the first 
  7.14  $76,000 of market value and a class rate of 1.65 percent of its 
  7.15  market value that exceeds $76,000. 
  7.16     Property that has been classified as seasonal recreational 
  7.17  residential property at any time during which it has been owned 
  7.18  by the current owner or spouse of the current owner does not 
  7.19  qualify for class 4bb. 
  7.20     (d) Class 4c property includes: 
  7.21     (1) except as provided in subdivision 22, paragraph (c), 
  7.22  real property devoted to temporary and seasonal residential 
  7.23  occupancy for recreation purposes, including real property 
  7.24  devoted to temporary and seasonal residential occupancy for 
  7.25  recreation purposes and not devoted to commercial purposes for 
  7.26  more than 250 days in the year preceding the year of 
  7.27  assessment.  For purposes of this clause, property is devoted to 
  7.28  a commercial purpose on a specific day if any portion of the 
  7.29  property is used for residential occupancy, and a fee is charged 
  7.30  for residential occupancy.  In order for a property to be 
  7.31  classified as class 4c, seasonal recreational residential for 
  7.32  commercial purposes, at least 40 percent of the annual gross 
  7.33  lodging receipts related to the property must be from business 
  7.34  conducted during 90 consecutive days and either (i) at least 60 
  7.35  percent of all paid bookings by lodging guests during the year 
  7.36  must be for periods of at least two consecutive nights; or (ii) 
  8.1   at least 20 percent of the annual gross receipts must be from 
  8.2   charges for rental of fish houses, boats and motors, 
  8.3   snowmobiles, downhill or cross-country ski equipment, or charges 
  8.4   for marina services, launch services, and guide services, or the 
  8.5   sale of bait and fishing tackle.  For purposes of this 
  8.6   determination, a paid booking of five or more nights shall be 
  8.7   counted as two bookings.  Class 4c also includes commercial use 
  8.8   real property used exclusively for recreational purposes in 
  8.9   conjunction with class 4c property devoted to temporary and 
  8.10  seasonal residential occupancy for recreational purposes, up to 
  8.11  a total of two acres, provided the property is not devoted to 
  8.12  commercial recreational use for more than 250 days in the year 
  8.13  preceding the year of assessment and is located within two miles 
  8.14  of the class 4c property with which it is used.  Class 4c 
  8.15  property classified in this clause also includes the remainder 
  8.16  of class 1c resorts provided that the entire property including 
  8.17  that portion of the property classified as class 1c also meets 
  8.18  the requirements for class 4c under this clause; otherwise the 
  8.19  entire property is classified as class 3.  Owners of real 
  8.20  property devoted to temporary and seasonal residential occupancy 
  8.21  for recreation purposes and all or a portion of which was 
  8.22  devoted to commercial purposes for not more than 250 days in the 
  8.23  year preceding the year of assessment desiring classification as 
  8.24  class 1c or 4c, must submit a declaration to the assessor 
  8.25  designating the cabins or units occupied for 250 days or less in 
  8.26  the year preceding the year of assessment by January 15 of the 
  8.27  assessment year.  Those cabins or units and a proportionate 
  8.28  share of the land on which they are located will be designated 
  8.29  class 1c or 4c as otherwise provided.  The remainder of the 
  8.30  cabins or units and a proportionate share of the land on which 
  8.31  they are located will be designated as class 3a.  The owner of 
  8.32  property desiring designation as class 1c or 4c property must 
  8.33  provide guest registers or other records demonstrating that the 
  8.34  units for which class 1c or 4c designation is sought were not 
  8.35  occupied for more than 250 days in the year preceding the 
  8.36  assessment if so requested.  The portion of a property operated 
  9.1   as a (1) restaurant, (2) bar, (3) gift shop, and (4) other 
  9.2   nonresidential facility operated on a commercial basis not 
  9.3   directly related to temporary and seasonal residential occupancy 
  9.4   for recreation purposes shall not qualify for class 1c or 4c; 
  9.5      (2) qualified property used as a golf course if: 
  9.6      (i) it is open to the public on a daily fee basis.  It may 
  9.7   charge membership fees or dues, but a membership fee may not be 
  9.8   required in order to use the property for golfing, and its green 
  9.9   fees for golfing must be comparable to green fees typically 
  9.10  charged by municipal courses; and 
  9.11     (ii) it meets the requirements of section 273.112, 
  9.12  subdivision 3, paragraph (d). 
  9.13     A structure used as a clubhouse, restaurant, or place of 
  9.14  refreshment in conjunction with the golf course is classified as 
  9.15  class 3a property; 
  9.16     (3) real property up to a maximum of one acre of land owned 
  9.17  by a nonprofit community service oriented organization; provided 
  9.18  that the property is not used for a revenue-producing activity 
  9.19  for more than six days in the calendar year preceding the year 
  9.20  of assessment and the property is not used for residential 
  9.21  purposes on either a temporary or permanent basis.  For purposes 
  9.22  of this clause, a "nonprofit community service oriented 
  9.23  organization" means any corporation, society, association, 
  9.24  foundation, or institution organized and operated exclusively 
  9.25  for charitable, religious, fraternal, civic, or educational 
  9.26  purposes, and which is exempt from federal income taxation 
  9.27  pursuant to section 501(c)(3), (10), or (19) of the Internal 
  9.28  Revenue Code of 1986, as amended through December 31, 1990.  For 
  9.29  purposes of this clause, "revenue-producing activities" shall 
  9.30  include but not be limited to property or that portion of the 
  9.31  property that is used as an on-sale intoxicating liquor or 3.2 
  9.32  percent malt liquor establishment licensed under chapter 340A, a 
  9.33  restaurant open to the public, bowling alley, a retail store, 
  9.34  gambling conducted by organizations licensed under chapter 349, 
  9.35  an insurance business, or office or other space leased or rented 
  9.36  to a lessee who conducts a for-profit enterprise on the 
 10.1   premises.  Any portion of the property which is used for 
 10.2   revenue-producing activities for more than six days in the 
 10.3   calendar year preceding the year of assessment shall be assessed 
 10.4   as class 3a.  The use of the property for social events open 
 10.5   exclusively to members and their guests for periods of less than 
 10.6   24 hours, when an admission is not charged nor any revenues are 
 10.7   received by the organization shall not be considered a 
 10.8   revenue-producing activity; 
 10.9      (4) post-secondary student housing of not more than one 
 10.10  acre of land that is owned by a nonprofit corporation organized 
 10.11  under chapter 317A and is used exclusively by a student 
 10.12  cooperative, sorority, or fraternity for on-campus housing or 
 10.13  housing located within two miles of the border of a college 
 10.14  campus; 
 10.15     (5) manufactured home parks as defined in section 327.14, 
 10.16  subdivision 3; and 
 10.17     (6) real property that is actively and exclusively devoted 
 10.18  to indoor fitness, health, social, recreational, and related 
 10.19  uses, is owned and operated by a not-for-profit corporation, and 
 10.20  is located within the metropolitan area as defined in section 
 10.21  473.121, subdivision 2. 
 10.22     Class 4c property has a class rate of 1.65 percent of 
 10.23  market value, except that (i) each parcel of seasonal 
 10.24  residential recreational property not used for commercial 
 10.25  purposes has the same class rates as class 4bb property, (ii) 
 10.26  manufactured home parks assessed under clause (5) have the same 
 10.27  class rate as class 4b property, and (iii) property described in 
 10.28  paragraph (d), clause (4), has the same class rate as the rate 
 10.29  applicable to the first tier of class 4bb nonhomestead 
 10.30  residential real estate under paragraph (c).  
 10.31     (e) Class 4d property is qualifying low-income rental 
 10.32  housing certified to the assessor by the housing finance agency 
 10.33  under sections 273.126 and 462A.071.  Class 4d includes land in 
 10.34  proportion to the total market value of the building that is 
 10.35  qualifying low-income rental housing.  For all properties 
 10.36  qualifying as class 4d, the market value determined by the 
 11.1   assessor must be based on the normal approach to value using 
 11.2   normal unrestricted rents. 
 11.3      Class 4d property has a class rate of one percent of market 
 11.4   value.  
 11.5      Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 11.6   273.1382, subdivision 1b, is amended to read: 
 11.7      Subd. 1b.  [EDUCATION AGRICULTURAL CREDIT.] Property 
 11.8   classified as class 2a agricultural homestead or class 2b 
 11.9   agricultural nonhomestead or timberland is eligible for 
 11.10  education agricultural credit.  The credit is equal to 54 100 
 11.11  percent, in the case of agricultural homestead property, or 50 
 11.12  percent, in the case of agricultural nonhomestead property or 
 11.13  timberland, of the property's net tax capacity times the 
 11.14  education credit tax rate determined in subdivision 1.  The net 
 11.15  tax capacity of class 2a property attributable to the house, 
 11.16  garage, and surrounding one acre of land is not eligible for the 
 11.17  credit under this subdivision. 
 11.18     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 11.19  273.1398, subdivision 1a, is amended to read: 
 11.20     Subd. 1a.  [TAX BASE DIFFERENTIAL.] (a) For aids payable in 
 11.21  2000, the tax base differential is: 
 11.22     (1) 0.45 percent of the assessment year 1998 taxable market 
 11.23  value of class 2a agricultural homestead property, excluding the 
 11.24  house, garage, and surrounding one acre of land, between 
 11.25  $115,000 and $600,000 and over 320 acres, minus the value over 
 11.26  $600,000 that is less than 320 acres; plus 
 11.27     (2) 0.5 percent of the assessment year 1998 taxable market 
 11.28  value of noncommercial seasonal recreational residential 
 11.29  property over $75,000 in value; plus 
 11.30     (3) for purposes of computing the fiscal disparity 
 11.31  adjustment only, 0.2 percent of the assessment year 1998 taxable 
 11.32  market value of class 3 commercial-industrial property over 
 11.33  $150,000. 
 11.34     (b) For aids payable in 2001, the tax base differential is: 
 11.35     (1) 0.4 percent of the assessment year 1999 taxable market 
 11.36  value of class 4a property which was subject to a class rate of 
 12.1   2.4 percent for taxes payable in 2000; plus 
 12.2      (2) 0.15 percent of the assessment year 1999 taxable market 
 12.3   value of class 4a property which was subject to a class rate of 
 12.4   2.15 percent for taxes payable in 2000; plus 
 12.5      (3) 0.4 percent of the assessment year 1999 taxable market 
 12.6   value of class 3 property up to $150,000 and 1.4 percent of the 
 12.7   1999 taxable market value of class 3 property over $150,000 but 
 12.8   not more than $350,000. 
 12.9      (b) (c) For the purposes of the distribution of homestead 
 12.10  and agricultural credit aid for aids payable in 2000 a calendar 
 12.11  year, the commissioner of revenue shall may use the best 
 12.12  information available as of June 30, 1999, of the previous 
 12.13  calendar year to make an estimate of the value described in 
 12.14  paragraph (a), clause (1) any values described in this 
 12.15  subdivision for which data is not available.  The commissioner 
 12.16  shall adjust the distribution of homestead and agricultural 
 12.17  credit aid for aids payable in 2001 and subsequent years if new 
 12.18  information regarding the value described in paragraph (a), 
 12.19  clause (1), becomes available after June 30, 1999. 
 12.20     Sec. 5.  [EFFECTIVE DATE.] 
 12.21     Sections 1 to 3 are effective for taxes levied in 2000, 
 12.22  payable in 2001, and thereafter.  Section 4 is effective for 
 12.23  aids payable in 2001 and thereafter. 
 12.24                             ARTICLE 2
 12.25           PERSONAL AND DEPENDENT INCOME TAX SUBTRACTION
 12.26     Section 1.  Minnesota Statutes 1999 Supplement, section 
 12.27  290.01, subdivision 19b, is amended to read: 
 12.28     Subd. 19b.  [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For 
 12.29  individuals, estates, and trusts, there shall be subtracted from 
 12.30  federal taxable income: 
 12.31     (1) interest income on obligations of any authority, 
 12.32  commission, or instrumentality of the United States to the 
 12.33  extent includable in taxable income for federal income tax 
 12.34  purposes but exempt from state income tax under the laws of the 
 12.35  United States; 
 12.36     (2) if included in federal taxable income, the amount of 
 13.1   any overpayment of income tax to Minnesota or to any other 
 13.2   state, for any previous taxable year, whether the amount is 
 13.3   received as a refund or as a credit to another taxable year's 
 13.4   income tax liability; 
 13.5      (3) the amount paid to others, less the credit allowed 
 13.6   under section 290.0674, not to exceed $1,625 for each qualifying 
 13.7   child in grades kindergarten to 6 and $2,500 for each qualifying 
 13.8   child in grades 7 to 12, for tuition, textbooks, and 
 13.9   transportation of each qualifying child in attending an 
 13.10  elementary or secondary school situated in Minnesota, North 
 13.11  Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of 
 13.12  this state may legally fulfill the state's compulsory attendance 
 13.13  laws, which is not operated for profit, and which adheres to the 
 13.14  provisions of the Civil Rights Act of 1964 and chapter 363.  For 
 13.15  the purposes of this clause, "tuition" includes fees or tuition 
 13.16  as defined in section 290.0674, subdivision 1, clause (1).  As 
 13.17  used in this clause, "textbooks" includes books and other 
 13.18  instructional materials and equipment used in elementary and 
 13.19  secondary schools in teaching only those subjects legally and 
 13.20  commonly taught in public elementary and secondary schools in 
 13.21  this state.  Equipment expenses qualifying for deduction 
 13.22  includes expenses as defined and limited in section 290.0674, 
 13.23  subdivision 1, clause (3).  "Textbooks" does not include 
 13.24  instructional books and materials used in the teaching of 
 13.25  religious tenets, doctrines, or worship, the purpose of which is 
 13.26  to instill such tenets, doctrines, or worship, nor does it 
 13.27  include books or materials for, or transportation to, 
 13.28  extracurricular activities including sporting events, musical or 
 13.29  dramatic events, speech activities, driver's education, or 
 13.30  similar programs.  For purposes of the subtraction provided by 
 13.31  this clause, "qualifying child" has the meaning given in section 
 13.32  32(c)(3) of the Internal Revenue Code; 
 13.33     (4) contributions made in taxable years beginning after 
 13.34  December 31, 1981, and before January 1, 1985, to a qualified 
 13.35  governmental pension plan, an individual retirement account, 
 13.36  simplified employee pension, or qualified plan covering a 
 14.1   self-employed person that were included in Minnesota gross 
 14.2   income in the taxable year for which the contributions were made 
 14.3   but were deducted or were not included in the computation of 
 14.4   federal adjusted gross income, less any amount allowed to be 
 14.5   subtracted as a distribution under this subdivision or a 
 14.6   predecessor provision in taxable years that began before January 
 14.7   1, 2000.  This subtraction applies only for taxable years 
 14.8   beginning after December 31, 1999, and before January 1, 2001; 
 14.9      (5) income as provided under section 290.0802; 
 14.10     (6) the amount of unrecovered accelerated cost recovery 
 14.11  system deductions allowed under subdivision 19g; 
 14.12     (7) to the extent included in federal adjusted gross 
 14.13  income, income realized on disposition of property exempt from 
 14.14  tax under section 290.491; 
 14.15     (8) to the extent not deducted in determining federal 
 14.16  taxable income, the amount paid for health insurance of 
 14.17  self-employed individuals as determined under section 162(l) of 
 14.18  the Internal Revenue Code, except that the percent limit does 
 14.19  not apply.  If the taxpayer deducted insurance payments under 
 14.20  section 213 of the Internal Revenue Code of 1986, the 
 14.21  subtraction under this clause must be reduced by the lesser of: 
 14.22     (i) the total itemized deductions allowed under section 
 14.23  63(d) of the Internal Revenue Code, less state, local, and 
 14.24  foreign income taxes deductible under section 164 of the 
 14.25  Internal Revenue Code and the standard deduction under section 
 14.26  63(c) of the Internal Revenue Code; or 
 14.27     (ii) the lesser of (A) the amount of insurance qualifying 
 14.28  as "medical care" under section 213(d) of the Internal Revenue 
 14.29  Code to the extent not deducted under section 162(1) of the 
 14.30  Internal Revenue Code or excluded from income or (B) the total 
 14.31  amount deductible for medical care under section 213(a); 
 14.32     (9) the exemption amount allowed under Laws 1995, chapter 
 14.33  255, article 3, section 2, subdivision 3; 
 14.34     (10) to the extent included in federal taxable income, 
 14.35  postservice benefits for youth community service under section 
 14.36  124D.42 for volunteer service under United States Code, title 
 15.1   42, section 5011(d), as amended; 
 15.2      (11) to the extent not deducted in determining federal 
 15.3   taxable income by an individual who does not itemize deductions 
 15.4   for federal income tax purposes for the taxable year, an amount 
 15.5   equal to 50 percent of the excess of charitable contributions 
 15.6   allowable as a deduction for the taxable year under section 
 15.7   170(a) of the Internal Revenue Code over $500; and 
 15.8      (12) to the extent included in federal taxable income, 
 15.9   holocaust victims' settlement payments for any injury incurred 
 15.10  as a result of the holocaust, if received by an individual who 
 15.11  was persecuted for racial or religious reasons by Nazi Germany 
 15.12  or any other Axis regime or an heir of such a person; and 
 15.13     (13) an amount equal to $900 for each of the taxpayer's 
 15.14  personal and dependent exemptions, as defined in sections 151 
 15.15  and 152 of the Internal Revenue Code, and allowed on the 
 15.16  taxpayer's federal income tax return for the tax year. 
 15.17     Sec. 2.  [EFFECTIVE DATE.] 
 15.18     Section 1 is effective for taxable years beginning after 
 15.19  December 31, 1999. 
 15.20                             ARTICLE 3 
 15.21                          SALES TAX REBATE 
 15.22     Section 1.  [STATEMENT OF PURPOSE.] 
 15.23     (a) The state of Minnesota derives revenues from a variety 
 15.24  of taxes, fees, and other sources, including the state sales tax.
 15.25     (b) It is fair and reasonable to refund the existing state 
 15.26  budget surplus in the form of a rebate of nonbusiness consumer 
 15.27  sales taxes paid by individuals in calendar year 1998. 
 15.28     (c) Information concerning the amount of sales tax paid at 
 15.29  various income levels is contained in the Minnesota tax 
 15.30  incidence report, which is written by the commissioner of 
 15.31  revenue and presented to the legislature according to Minnesota 
 15.32  Statutes, section 270.0682. 
 15.33     (d) It is fair and reasonable to use information contained 
 15.34  in the Minnesota tax incidence report, updated to calendar year 
 15.35  1998, to determine the proportionate share of the sales tax 
 15.36  rebate due each eligible taxpayer since no effective or 
 16.1   practical mechanism exists for determining the amount of actual 
 16.2   sales tax paid by each eligible individual. 
 16.3      Sec. 2.  [SALES TAX REBATE.] 
 16.4      (a) An individual who: 
 16.5      (1) was eligible for a credit under Laws 1998, chapter 389, 
 16.6   article 1, section 1, and who filed for or received that credit 
 16.7   on or before June 15, 2000; or 
 16.8      (2) was a resident of Minnesota for any part of 1998, and 
 16.9   filed a 1998 Minnesota income tax return on or before June 15, 
 16.10  2000, and had a tax liability before refundable credits on that 
 16.11  return of at least $1 but did not file the claim for credit 
 16.12  authorized under Laws 1998, chapter 389, article 1, section 1, 
 16.13  as amended, and who was not allowed to be claimed as a dependent 
 16.14  on a 1998 federal income tax return filed by another person; or 
 16.15     (3) had the property taxes payable on his or her homestead 
 16.16  abated to zero under Laws 1998, chapter 383, section 20, shall 
 16.17  receive a sales tax rebate. 
 16.18     (b) The sales tax rebate for taxpayers who qualify under 
 16.19  paragraph (a) as married filing joint or head of household must 
 16.20  be computed according to the following schedule: 
 16.21       Income                                Sales Tax Rebate
 16.22   less than $2,500                                $140
 16.23   at least $2,500 but less than $5,000            $180
 16.24   at least $5,000 but less than $10,000           $192
 16.25   at least $10,000 but less than $15,000          $211
 16.26   at least $15,000 but less than $20,000          $229
 16.27   at least $20,000 but less than $25,000          $249
 16.28   at least $25,000 but less than $30,000          $260
 16.29   at least $30,000 but less than $35,000          $281
 16.30   at least $35,000 but less than $40,000          $308
 16.31   at least $40,000 but less than $45,000          $330
 16.32   at least $45,000 but less than $50,000          $347
 16.33   at least $50,000 but less than $60,000          $370
 16.34   at least $60,000 but less than $70,000          $396
 16.35   at least $70,000 but less than $80,000          $436
 16.36   at least $80,000 but less than $90,000          $468
 17.1    at least $90,000 but less than $100,000         $517
 17.2    at least $100,000 but less than $120,000        $559
 17.3    at least $120,000 but less than $140,000        $613
 17.4    at least $140,000 but less than $160,000        $662
 17.5    at least $160,000 but less than $180,000        $709
 17.6    at least $180,000 but less than $200,000        $753
 17.7    at least $200,000 but less than $400,000        $964
 17.8    at least $400,000 but less than $600,000      $1,268
 17.9    at least $600,000 but less than $800,000      $1,521
 17.10   at least $800,000 but less than $1,000,000    $1,744
 17.11   $1,000,000 and over                           $2,000
 17.12     (c) The sales tax rebate for individuals who qualify under 
 17.13  paragraph (a) as single or married filing separately must be 
 17.14  computed according to the following schedule: 
 17.15   Income                                    Sales Tax Rebate
 17.16   less than $2,500                                $79
 17.17   at least $2,500 but less than $5,000            $97
 17.18   at least $5,000 but less than $10,000          $114
 17.19   at least $10,000 but less than $15,000         $153
 17.20   at least $15,000 but less than $20,000         $175
 17.21   at least $20,000 but less than $25,000         $190
 17.22   at least $25,000 but less than $30,000         $198
 17.23   at least $30,000 but less than $40,000         $216
 17.24   at least $40,000 but less than $50,000         $242
 17.25   at least $50,000 but less than $70,000         $285
 17.26   at least $70,000 but less than $100,000        $362
 17.27   at least $100,000 but less than $140,000       $436
 17.28   at least $140,000 but less than $200,000       $527
 17.29   at least $200,000 but less than $400,000       $714
 17.30   at least $400,000 but less than $600,000       $940
 17.31   $600,000 and over                            $1,000
 17.32     (d) Individuals who were not residents of Minnesota for any 
 17.33  part of 1998 and who paid more than $10 in Minnesota sales tax 
 17.34  on nonbusiness consumer purchases in that year qualify for a 
 17.35  rebate under this paragraph only.  Qualifying nonresidents must 
 17.36  file a claim for rebate on a form prescribed by the commissioner 
 18.1   before the later of June 15, 2000, or 30 days after the date of 
 18.2   enactment of this act.  The claim must include receipts showing 
 18.3   the Minnesota sales tax paid and the date of the sale.  Taxes 
 18.4   paid on purchases allowed in the computation of federal taxable 
 18.5   income or reimbursed by an employer are not eligible for the 
 18.6   rebate.  The commissioner shall determine the qualifying taxes 
 18.7   paid and rebate the lesser of: 
 18.8      (1) 24.75 percent of that amount; or 
 18.9      (2) the maximum amount for which the claimant would have 
 18.10  been eligible as determined under paragraph (b) if the taxpayer 
 18.11  filed the 1998 federal income tax return as a married taxpayer 
 18.12  filing jointly or head of household, or as determined under 
 18.13  paragraph (c) for other taxpayers. 
 18.14     (e) "Income," for purposes of this section other than 
 18.15  paragraph (d), is taxable income as defined in section 63 of the 
 18.16  Internal Revenue Code of 1986, as amended through December 31, 
 18.17  1997, plus the sum of any additions to federal taxable income 
 18.18  for the taxpayer under Minnesota Statutes, section 290.01, 
 18.19  subdivision 19a, and reported on the original 1998 income tax 
 18.20  return, including subsequent adjustments to that return made 
 18.21  within the time limits specified in paragraph (i).  For an 
 18.22  individual who was a resident of Minnesota for less than the 
 18.23  entire year, the sales tax rebate equals the sales tax rebate 
 18.24  calculated under paragraph (b) or (c) multiplied by the 
 18.25  percentage determined pursuant to Minnesota Statutes, section 
 18.26  290.06, subdivision 2c, paragraph (e), as calculated on the 
 18.27  original 1998 income tax return, including subsequent 
 18.28  adjustments to that return made within the time limits specified 
 18.29  in paragraph (i).  For purposes of paragraph (d), "income" is 
 18.30  taxable income as defined in section 63 of the Internal Revenue 
 18.31  Code of 1986, as amended through December 31, 1997, and reported 
 18.32  on the taxpayer's original federal tax return for the first 
 18.33  taxable year beginning after December 31, 1997. 
 18.34     (f) For a fiscal year taxpayer, the June 15, 2000, dates in 
 18.35  paragraphs (a) through (d) are extended one month for each month 
 18.36  in calendar year 1998 that occurred prior to the start of the 
 19.1   individual's 1998 fiscal tax year. 
 19.2      (g) Before payment, the commissioner of revenue shall 
 19.3   adjust the rebate as follows: 
 19.4      the rebates calculated in paragraphs (b), (c), and (d) must 
 19.5   be proportionately reduced to account for 1998 income tax 
 19.6   returns that are filed on or after January 1, 2000, but before 
 19.7   July 1, 2000, so that the amount of sales tax rebates payable 
 19.8   under paragraphs (b), (c), and (d) does not exceed 
 19.9   $497,000,000.  The adjustment under this paragraph is not a rule 
 19.10  subject to Minnesota Statutes, chapter 14. 
 19.11     (h) The commissioner of revenue may begin making sales tax 
 19.12  rebates by August 1, 2000.  Sales tax rebates not paid by 
 19.13  September 1, 2000, bear interest at the rate specified in 
 19.14  Minnesota Statutes, section 270.75. 
 19.15     (i) A sales tax rebate shall not be adjusted based on 
 19.16  changes to a 1998 income tax return that are made by order of 
 19.17  assessment after June 15, 2000, or made by the taxpayer that are 
 19.18  filed with the commissioner of revenue after June 15, 2000. 
 19.19     (j) Individuals who filed a joint income tax return for 
 19.20  1998 shall receive a joint sales tax rebate.  After the sales 
 19.21  tax rebate has been issued, but before the check has been 
 19.22  cashed, either joint claimant may request a separate check for 
 19.23  one-half of the joint sales tax rebate.  Notwithstanding 
 19.24  anything in this section to the contrary, if prior to payment, 
 19.25  the commissioner has been notified that persons who filed a 
 19.26  joint 1998 income tax return are living at separate addresses, 
 19.27  as indicated on their 1999 income tax return or otherwise, the 
 19.28  commissioner may issue separate checks to each person.  The 
 19.29  amount payable to each person is one-half of the total joint 
 19.30  rebate. 
 19.31     (k) If a rebate is received by the estate of a deceased 
 19.32  individual after the probate estate has been closed, and if the 
 19.33  original rebate check is returned to the commissioner with a 
 19.34  copy of the decree of descent or final account of the estate, 
 19.35  social security numbers, and addresses of the beneficiaries, the 
 19.36  commissioner may issue separate checks in proportion to their 
 20.1   share in the residuary estate in the names of the residuary 
 20.2   beneficiaries of the estate. 
 20.3      (l) The sales tax rebate is a "Minnesota tax law" for 
 20.4   purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
 20.5      (m) The sales tax rebate is "an overpayment of any tax 
 20.6   collected by the commissioner" for purposes of Minnesota 
 20.7   Statutes, section 270.07, subdivision 5.  For purposes of this 
 20.8   paragraph, a joint sales tax rebate is payable to each spouse 
 20.9   equally. 
 20.10     (n) If the commissioner of revenue cannot locate an 
 20.11  individual entitled to a sales tax rebate by July 1, 2002, or if 
 20.12  an individual to whom a sales tax rebate was issued has not 
 20.13  cashed the check by July 1, 2002, the right to the sales tax 
 20.14  rebate lapses and the check must be deposited in the general 
 20.15  fund. 
 20.16     (o) Individuals entitled to a sales tax rebate pursuant to 
 20.17  paragraph (a), but who did not receive one, and individuals who 
 20.18  receive a sales tax rebate that was not correctly computed, must 
 20.19  file a claim with the commissioner before July 1, 2001, in a 
 20.20  form prescribed by the commissioner.  These claims must be 
 20.21  treated as if they are a claim for refund under Minnesota 
 20.22  Statutes, section 289A.50, subdivisions 4 and 7. 
 20.23     (p) The sales tax rebate is a refund subject to revenue 
 20.24  recapture under Minnesota Statutes, chapter 270A.  The 
 20.25  commissioner of revenue shall remit the entire refund to the 
 20.26  claimant agency, which shall, upon the request of the spouse who 
 20.27  does not owe the debt, refund one-half of the joint sales tax 
 20.28  rebate to the spouse who does not owe the debt. 
 20.29     (q) The rebate is a reduction of fiscal year 2000 sales tax 
 20.30  revenues.  The amount necessary to make the sales tax rebates 
 20.31  and interest provided in this section is appropriated from the 
 20.32  general fund to the commissioner of revenue in fiscal year 2000 
 20.33  and is available until June 30, 2002. 
 20.34     (r) If a sales tax rebate check is cashed by someone other 
 20.35  than the payee or payees of the check, and the commissioner of 
 20.36  revenue determines that the check has been forged or improperly 
 21.1   endorsed or the commissioner determines that a rebate was 
 21.2   overstated or erroneously issued, the commissioner may issue an 
 21.3   order of assessment for the amount of the check or the amount 
 21.4   the check is overstated against the person or persons cashing 
 21.5   it.  The assessment must be made within two years after the 
 21.6   check is cashed, but if cashing the check constitutes theft 
 21.7   under Minnesota Statutes, section 609.52, or forgery under 
 21.8   Minnesota Statutes, section 609.631, the assessment can be made 
 21.9   at any time.  The assessment may be appealed administratively 
 21.10  and judicially.  The commissioner may take action to collect the 
 21.11  assessment in the same manner as provided by Minnesota Statutes, 
 21.12  chapter 289A, for any other order of the commissioner assessing 
 21.13  tax. 
 21.14     (s) Notwithstanding Minnesota Statutes, sections 9.031, 
 21.15  16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
 21.16  commissioner of revenue may take whatever actions the 
 21.17  commissioner deems necessary to pay the rebates required by this 
 21.18  section, and may, in consultation with the commissioner of 
 21.19  finance and the state treasurer, contract with a private vendor 
 21.20  or vendors to process, print, and mail the rebate checks or 
 21.21  warrants required under this section and receive and disburse 
 21.22  state funds to pay those checks or warrants. 
 21.23     (t) The commissioner may pay rebates required by this 
 21.24  section by electronic funds transfer to individuals who 
 21.25  requested that their 1999 individual income tax refund be paid 
 21.26  through electronic funds transfer.  The commissioner may make 
 21.27  the electronic funds transfer payments to the same financial 
 21.28  institution and into the same account as the 1999 individual 
 21.29  income tax refund. 
 21.30     Sec. 3.  [APPROPRIATION.] 
 21.31     $....... is appropriated from the general fund to the 
 21.32  commissioner of revenue to administer the sales tax rebate for 
 21.33  fiscal year 2000.  Any unencumbered balance remaining on June 
 21.34  30, 2000, does not cancel but is available for expenditure by 
 21.35  the commissioner of revenue until June 30, 2002.  This is a 
 21.36  one-time appropriation and may not be added to the agency's 
 22.1   budget base. 
 22.2      Sec. 4.  [EFFECTIVE DATE.] 
 22.3      Sections 1 to 3 are effective the day following final 
 22.4   enactment. 
 22.5                              ARTICLE 4
 22.6            SALES TAX EXEMPTION FOR POLITICAL SUBDIVISIONS
 22.7      Section 1.  Minnesota Statutes 1999 Supplement, section 
 22.8   297A.25, subdivision 11, is amended to read: 
 22.9      Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
 22.10  all sales, including sales in which title is retained by a 
 22.11  seller or a vendor or is assigned to a third party under an 
 22.12  installment sale or lease purchase agreement under section 
 22.13  465.71, of tangible personal property to, and all storage, use 
 22.14  or consumption of such property by, the following governmental 
 22.15  entities are exempt: 
 22.16     (1) the United States and its agencies and 
 22.17  instrumentalities,; 
 22.18     (2) the University of Minnesota, state universities, 
 22.19  community colleges, technical colleges, state academies, and the 
 22.20  Perpich center for arts education, an instrumentality of a 
 22.21  political subdivision that is accredited as an optional/special 
 22.22  function school by the North Central Association of Colleges and 
 22.23  Schools, school districts,; 
 22.24     (3) public libraries, public library systems, multicounty, 
 22.25  multitype library systems as defined in section 134.001, county 
 22.26  law libraries under chapter 134A, the state library under 
 22.27  section 480.09, and the legislative reference library are 
 22.28  exempt; and 
 22.29     (4) political subdivisions of a state and their agencies 
 22.30  and instrumentalities. 
 22.31     As used in this subdivision, "school districts" means 
 22.32  public school entities and districts of every kind and nature 
 22.33  organized under the laws of the state of Minnesota, including, 
 22.34  without limitation, school districts, intermediate school 
 22.35  districts, education districts, service cooperatives, secondary 
 22.36  vocational cooperative centers, special education cooperatives, 
 23.1   joint purchasing cooperatives, telecommunication cooperatives, 
 23.2   regional management information centers, and any instrumentality 
 23.3   of a school district, as defined in section 471.59. 
 23.4      Sales exempted by this subdivision include sales under 
 23.5   section 297A.01, subdivision 3, paragraph (f).  
 23.6      Sales to hospitals and nursing homes owned and operated by 
 23.7   political subdivisions of the state are exempt under this 
 23.8   subdivision.  
 23.9      Sales of supplies and equipment used in the operation of an 
 23.10  ambulance service owned and operated by a political subdivision 
 23.11  of the state are exempt under this subdivision provided that the 
 23.12  supplies and equipment are used in the course of providing 
 23.13  medical care.  Sales to a political subdivision of repair and 
 23.14  replacement parts for emergency rescue vehicles and fire trucks 
 23.15  and apparatus are exempt under this subdivision.  
 23.16     Sales to a political subdivision of machinery and 
 23.17  equipment, except for motor vehicles, used directly for mixed 
 23.18  municipal solid waste management services at a solid waste 
 23.19  disposal facility as defined in section 115A.03, subdivision 10, 
 23.20  are exempt under this subdivision.  
 23.21     Sales to political subdivisions of chore and homemaking 
 23.22  services to be provided to elderly or disabled individuals are 
 23.23  exempt. 
 23.24     Sales to a town of gravel and of machinery, equipment, and 
 23.25  accessories, except motor vehicles, used exclusively for road 
 23.26  and bridge maintenance, and leases of motor vehicles exempt from 
 23.27  tax under section 297B.03, clause (10), are exempt. 
 23.28     Sales of telephone services to the department of 
 23.29  administration that are used to provide telecommunications 
 23.30  services through the intertechnologies revolving fund are exempt 
 23.31  under this subdivision. 
 23.32     This exemption shall not apply to building, construction or 
 23.33  reconstruction materials purchased by a contractor or a 
 23.34  subcontractor as a part of a lump-sum contract or similar type 
 23.35  of contract with a guaranteed maximum price covering both labor 
 23.36  and materials for use in the construction, alteration, or repair 
 24.1   of a building or facility.  This exemption does not apply to 
 24.2   construction materials purchased by tax exempt entities or their 
 24.3   contractors to be used in constructing buildings or facilities 
 24.4   which will not be used principally by the tax exempt entities. 
 24.5      This exemption does not apply to the leasing of a motor 
 24.6   vehicle as defined in section 297B.01, subdivision 5, except for:
 24.7      (1) leases entered into by the United States or its 
 24.8   agencies or instrumentalities; and 
 24.9      (2) leases entered into by a political subdivision of motor 
 24.10  vehicles exempt from tax under chapter 297B.  
 24.11     The tax imposed on sales to political subdivisions of the 
 24.12  state under this section applies to all political subdivisions 
 24.13  other than those explicitly exempted under this subdivision, 
 24.14  notwithstanding section 115A.69, subdivision 6, 116A.25, 
 24.15  360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
 24.16  469.127, 473.448, 473.545, or 473.608 or any other law to the 
 24.17  contrary enacted before 1992. 
 24.18     Sales exempted by this subdivision include sales made to 
 24.19  other states or political subdivisions of other states, if the 
 24.20  sale would be exempt from taxation if it occurred in that state, 
 24.21  but do not include sales under section 297A.01, subdivision 3, 
 24.22  paragraphs (c) and (e). 
 24.23     Sec. 2.  Minnesota Statutes 1998, section 297A.47, is 
 24.24  amended to read: 
 24.25     297A.47 [REPORTING OF SALES TAX ON MINNESOTA GOVERNMENTS.] 
 24.26     The commissioner shall estimate the amount of revenues 
 24.27  derived from imposing the tax under this chapter and chapter 
 24.28  297B on state agencies and political subdivisions for each 
 24.29  fiscal year and shall report this amount to the commissioner of 
 24.30  finance before the time for filing reports for the fiscal year 
 24.31  with the United States Department of Commerce.  The commissioner 
 24.32  of finance in reporting the sales tax and sales tax on motor 
 24.33  vehicles collections to the United States Department of Commerce 
 24.34  shall exclude this amount from the sales and motor vehicle 
 24.35  collections.  Sales tax and Sales tax on motor vehicles revenues 
 24.36  revenue received from political subdivisions must be reported as 
 25.1   intergovernmental grants or similar intergovernmental revenue.  
 25.2   The amount of the sales tax and sales tax on motor vehicles paid 
 25.3   by state agencies must be reported as reduced state expenditures.
 25.4      Sec. 3.  [EFFECTIVE DATE.] 
 25.5      Sections 1 and 2 are effective for sales occurring after 
 25.6   June 30, 2000.