SF 3036

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; making policy and administrative 
  1.3             changes to property taxes, liquor taxes, sales and use 
  1.4             taxes, production taxes, gross revenues taxes, levy 
  1.5             limits, property tax petitions, income tax returns, 
  1.6             and tax increment financing; extending the expiration 
  1.7             of program authorizing publication of delinquent 
  1.8             taxpayers; providing a time limit for claims for 
  1.9             offset of federal tax refunds; amending Minnesota 
  1.10            Statutes 2000, sections 270.063, subdivision 4; 
  1.11            273.125, subdivision 4; 278.01, subdivision 1; 279.01, 
  1.12            subdivision 3; 289A.19, subdivision 1; 295.53, 
  1.13            subdivision 1; 295.57, by adding a subdivision; 
  1.14            297G.07, subdivision 1; 298.27; 298.28, subdivision 5; 
  1.15            Minnesota Statutes 2001 Supplement, sections 270.691, 
  1.16            subdivision 8; 275.71, subdivision 4; 295.60, 
  1.17            subdivision 2, by adding a subdivision; 297A.61, 
  1.18            subdivision 26; 298.28, subdivisions 6, 10; 469.1763, 
  1.19            subdivision 6; repealing Minnesota Statutes 2000, 
  1.20            section 278.01, subdivision 4. 
  1.21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.22     Section 1.  Minnesota Statutes 2000, section 270.063, 
  1.23  subdivision 4, is amended to read: 
  1.24     Subd. 4.  [FEDERAL TAX REFUND OFFSET FEES; TIME LIMIT FOR 
  1.25  SUBMITTING CLAIMS FOR OFFSET.] For fees charged by the 
  1.26  department of the treasury of the United States for the offset 
  1.27  of federal tax refunds that are deducted from the refund amounts 
  1.28  remitted to the commissioner, the unpaid debts of the taxpayers 
  1.29  whose refunds are being offset to satisfy the debts are reduced 
  1.30  only by the actual amount of the refund payments received by the 
  1.31  commissioner.  Notwithstanding any other provision of law to the 
  1.32  contrary, a claim for the offset of a federal tax refund must be 
  1.33  submitted to the department of the treasury of the United States 
  2.1   within ten years after the date of the assessment of the tax 
  2.2   owed by the taxpayer whose refund is to be offset to satisfy the 
  2.3   debt. 
  2.4      [EFFECTIVE DATE.] This section is effective for claims for 
  2.5   offset that were submitted before and are pending on the date of 
  2.6   final enactment, and for claims submitted on or after the day 
  2.7   following final enactment. 
  2.8      Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  2.9   270.691, subdivision 8, is amended to read: 
  2.10     Subd. 8.  [EXPIRATION DATE.] The program authorized under 
  2.11  this section terminates on June 30, 2002 2003. 
  2.12     [EFFECTIVE DATE.] This section is effective the day 
  2.13  following final enactment. 
  2.14     Sec. 3.  Minnesota Statutes 2000, section 273.125, 
  2.15  subdivision 4, is amended to read: 
  2.16     Subd. 4.  [PETITIONS OF GRIEVANCE.] A person who claims 
  2.17  that the person's manufactured home has been unfairly or 
  2.18  unequally assessed, or that the property has been assessed at a 
  2.19  valuation greater than its real or actual value, or that the tax 
  2.20  levied against it is illegal, in whole or in part, or has been 
  2.21  paid, or that the property is exempt from the tax so levied, may 
  2.22  have the validity of the claim, defense, or objection determined 
  2.23  in court.  The determination must be made by the district court 
  2.24  of the county in which the tax is levied or by the tax court.  A 
  2.25  person can request the determination by filing a petition for it 
  2.26  in the office of the court administrator of the district court 
  2.27  on or before the later of September 1 of the year in which the 
  2.28  tax becomes payable or 30 days after the postmark on the 
  2.29  envelope containing the property tax statement for the 
  2.30  property.  A petition for determination under this section may 
  2.31  be transferred by the district court to the tax court. 
  2.32     [EFFECTIVE DATE.] This section is effective for taxes 
  2.33  payable in 2003 and thereafter. 
  2.34     Sec. 4.  Minnesota Statutes 2001 Supplement, section 
  2.35  275.71, subdivision 4, is amended to read: 
  2.36     Subd. 4.  [ADJUSTED LEVY LIMIT BASE.] (a) For taxes levied 
  3.1   in 2001 and 2002, the adjusted levy limit base is equal to 
  3.2   the sum of the levy limit base computed under subdivisions 2 and 
  3.3   3 or section 275.72, plus, in the case of a city, the amount it 
  3.4   was certified to receive in calendar year 2001 under section 
  3.5   273.166, multiplied by: 
  3.6      (1) one plus a percentage equal to the percentage growth in 
  3.7   the implicit price deflator; 
  3.8      (2) one plus a percentage equal to the percentage increase 
  3.9   in number of households, if any, for the most recent 12-month 
  3.10  period for which data is available; and 
  3.11     (3) one plus a percentage equal to 50 percent of the 
  3.12  percentage increase in the taxable market value of the 
  3.13  jurisdiction due to new construction of class 3 property, as 
  3.14  defined in section 273.13, subdivision 24, except for 
  3.15  state-assessed utility and railroad operating property, for the 
  3.16  most recent year for which data is available. 
  3.17     (b) For counties only, for taxes levied in 2001 and 2002, 
  3.18  the adjusted levy limit base is also reduced by any amount of 
  3.19  levy reduction required under section 275.07, subdivision 1, 
  3.20  paragraph (b), clause (ii). 
  3.21     [EFFECTIVE DATE.] This section is effective for taxes 
  3.22  payable in 2003. 
  3.23     Sec. 5.  Minnesota Statutes 2000, section 278.01, 
  3.24  subdivision 1, is amended to read: 
  3.25     Subdivision 1.  [DETERMINATION OF VALIDITY.] (a) Any person 
  3.26  having personal property, or any estate, right, title, or 
  3.27  interest in or lien upon any parcel of land, who claims that 
  3.28  such property has been partially, unfairly, or unequally 
  3.29  assessed in comparison with other property in the (1) city, or 
  3.30  (2) county, or (3) in the case of a county containing a city of 
  3.31  the first class, the portion of the county excluding the first 
  3.32  class city, or that the parcel has been assessed at a valuation 
  3.33  greater than its real or actual value, or that the tax levied 
  3.34  against the same is illegal, in whole or in part, or has been 
  3.35  paid, or that the property is exempt from the tax so levied, may 
  3.36  have the validity of the claim, defense, or objection determined 
  4.1   by the district court of the county in which the tax is levied 
  4.2   or by the tax court by serving one copy of a petition for such 
  4.3   determination upon the county auditor, one copy on the county 
  4.4   attorney, one copy on the county treasurer, and three copies on 
  4.5   the county assessor.  The county assessor shall immediately 
  4.6   forward one copy of the petition to the appropriate governmental 
  4.7   authority in a home rule charter or statutory city or town in 
  4.8   which the property is located if that city or town employs its 
  4.9   own certified assessor.  A copy of the petition shall also be 
  4.10  forwarded by the assessor to the school board of the school 
  4.11  district in which the property is located. 
  4.12     (b) In counties where the office of county treasurer has 
  4.13  been combined with the office of county auditor, the county may 
  4.14  elect to require the petitioner to serve the number of copies as 
  4.15  determined by the county.  The county assessor shall immediately 
  4.16  forward one copy of the petition to the appropriate governmental 
  4.17  authority in a home rule charter or statutory city or town in 
  4.18  which the property is located if that city or town employs its 
  4.19  own certified assessor.  A list of petitioned properties, 
  4.20  including the name of the petitioner, the identification number 
  4.21  of the property, and the estimated market value, shall be sent 
  4.22  on or before the first day of July by the county 
  4.23  auditor/treasurer to the school board of the school district in 
  4.24  which the property is located. 
  4.25     (c) For all counties, the petitioner must file the copies 
  4.26  with proof of service, in the office of the court administrator 
  4.27  of the district court on or before the later of March 31 of the 
  4.28  year in which the tax becomes payable or 30 days after the 
  4.29  postmark on the envelope containing the property tax statement 
  4.30  for the property.  A petition for determination under this 
  4.31  section may be transferred by the district court to the tax 
  4.32  court.  An appeal may also be taken to the tax court under 
  4.33  chapter 271 at any time following receipt of the valuation 
  4.34  notice required by section 273.121 but prior to April 1 of the 
  4.35  year in which the taxes are payable the deadline in this 
  4.36  paragraph. 
  5.1      [EFFECTIVE DATE.] This section is effective for taxes 
  5.2   payable in 2003 and thereafter. 
  5.3      Sec. 6.  Minnesota Statutes 2000, section 279.01, 
  5.4   subdivision 3, is amended to read: 
  5.5      Subd. 3.  [AGRICULTURAL PROPERTY.] In the case of class 1b 
  5.6   agricultural homestead, class 2a agricultural homestead 
  5.7   property, and class 2b(3) agricultural nonhomestead property, no 
  5.8   penalties shall attach to the second one-half property tax 
  5.9   payment as provided in this section if paid by November 15.  
  5.10  Thereafter for class 1b agricultural homestead and class 2a 
  5.11  homestead property, on November 16 following, a penalty of six 
  5.12  percent shall accrue and be charged on all such unpaid taxes and 
  5.13  on December 1 following, an additional two percent shall be 
  5.14  charged on all such unpaid taxes.  Thereafter for class 2b(3) 
  5.15  agricultural nonhomestead property, on November 16 following, a 
  5.16  penalty of eight percent shall accrue and be charged on all such 
  5.17  unpaid taxes and on December 1 following, an additional four 
  5.18  percent shall be charged on all such unpaid taxes. 
  5.19     If the owner of class 1b agricultural homestead, class 2a, 
  5.20  or class 2b(3) agricultural property receives a consolidated 
  5.21  property tax statement that shows only an aggregate of the taxes 
  5.22  and special assessments due on that property and on other 
  5.23  property not classified as class 1b agricultural homestead, 
  5.24  class 2a, or class 2b(3) agricultural property, the aggregate 
  5.25  tax and special assessments shown due on the property by the 
  5.26  consolidated statement will be due on November 15 provided that 
  5.27  at least 50 percent of the property's market value is classified 
  5.28  class 1b agricultural, class 2a, or class 2b(3) agricultural. 
  5.29     [EFFECTIVE DATE.] This section is effective for taxes 
  5.30  payable in 2003 and thereafter. 
  5.31     Sec. 7.  Minnesota Statutes 2000, section 289A.19, 
  5.32  subdivision 1, is amended to read: 
  5.33     Subdivision 1.  [FIDUCIARY INCOME, ENTERTAINMENT TAX, AND 
  5.34  INFORMATION RETURNS.] When, in the commissioner's judgment, good 
  5.35  cause exists, the commissioner may extend the time for filing 
  5.36  entertainment tax returns for not more than six months.  If an 
  6.1   extension to file the federal fiduciary income tax return or 
  6.2   information return has been granted under section 6081 of the 
  6.3   Internal Revenue Code, the time for filing the state return is 
  6.4   extended for that period.  The commissioner may require the 
  6.5   taxpayer to file a tentative return when the regularly required 
  6.6   return is due, and to pay a tax on the basis of the tentative 
  6.7   return at the times required for the payment of taxes on the 
  6.8   basis of the regularly required return from the taxpayer.  The 
  6.9   commissioner shall grant an automatic extension of six months to 
  6.10  file a partnership, "S" corporation, or fiduciary income tax 
  6.11  return if all of the taxes imposed on the entity for the year by 
  6.12  chapter 290 and section 289A.08, subdivision 7, have been paid 
  6.13  by the date prescribed by section 289A.18, subdivision 1. 
  6.14     [EFFECTIVE DATE.] This section is effective for returns due 
  6.15  after December 31, 2002. 
  6.16     Sec. 8.  Minnesota Statutes 2000, section 295.53, 
  6.17  subdivision 1, is amended to read: 
  6.18     Subdivision 1.  [EXEMPTIONS.] (a) The following payments 
  6.19  are excluded from the gross revenues subject to the hospital, 
  6.20  surgical center, or health care provider taxes under sections 
  6.21  295.50 to 295.57: 
  6.22     (1) payments received for services provided under the 
  6.23  Medicare program, including payments received from the 
  6.24  government, and organizations governed by sections 1833 and 1876 
  6.25  of title XVIII of the federal Social Security Act, United States 
  6.26  Code, title 42, section 1395, and enrollee deductibles, 
  6.27  coinsurance, and copayments, whether paid by the Medicare 
  6.28  enrollee or by a Medicare supplemental coverage as defined in 
  6.29  section 62A.011, subdivision 3, clause (10).  Payments for 
  6.30  services not covered by Medicare are taxable; 
  6.31     (2) medical assistance payments including payments received 
  6.32  directly from the government or from a prepaid plan; 
  6.33     (3) payments received for home health care services; 
  6.34     (4) payments received from hospitals or surgical centers 
  6.35  for goods and services on which liability for tax is imposed 
  6.36  under section 295.52 or the source of funds for the payment is 
  7.1   exempt under clause (1), (2), (7), (8), (10), (13), or (20); 
  7.2      (5) payments received from health care providers for goods 
  7.3   and services on which liability for tax is imposed under this 
  7.4   chapter or the source of funds for the payment is exempt under 
  7.5   clause (1), (2), (7), (8), (10), (13), or (20); 
  7.6      (6) amounts paid for legend drugs, other than nutritional 
  7.7   products, to a wholesale drug distributor who is subject to tax 
  7.8   under section 295.52, subdivision 3, reduced by reimbursements 
  7.9   received for legend drugs under clauses (1), (2), (7), and 
  7.10  (8) otherwise exempt under chapter 295; 
  7.11     (7) payments received under the general assistance medical 
  7.12  care program including payments received directly from the 
  7.13  government or from a prepaid plan; 
  7.14     (8) payments received for providing services under the 
  7.15  MinnesotaCare program including payments received directly from 
  7.16  the government or from a prepaid plan and enrollee deductibles, 
  7.17  coinsurance, and copayments.  For purposes of this clause, 
  7.18  coinsurance means the portion of payment that the enrollee is 
  7.19  required to pay for the covered service; 
  7.20     (9) payments received by a health care provider or the 
  7.21  wholly owned subsidiary of a health care provider for care 
  7.22  provided outside Minnesota; 
  7.23     (10) payments received from the chemical dependency fund 
  7.24  under chapter 254B; 
  7.25     (11) payments received in the nature of charitable 
  7.26  donations that are not designated for providing patient services 
  7.27  to a specific individual or group; 
  7.28     (12) payments received for providing patient services 
  7.29  incurred through a formal program of health care research 
  7.30  conducted in conformity with federal regulations governing 
  7.31  research on human subjects.  Payments received from patients or 
  7.32  from other persons paying on behalf of the patients are subject 
  7.33  to tax; 
  7.34     (13) payments received from any governmental agency for 
  7.35  services benefiting the public, not including payments made by 
  7.36  the government in its capacity as an employer or insurer; 
  8.1      (14) payments received for services provided by community 
  8.2   residential mental health facilities licensed under Minnesota 
  8.3   Rules, parts 9520.0500 to 9520.0690, community support programs 
  8.4   and family community support programs approved under Minnesota 
  8.5   Rules, parts 9535.1700 to 9535.1760, and community mental health 
  8.6   centers as defined in section 245.62, subdivision 2; 
  8.7      (15) government payments received by a regional treatment 
  8.8   center; 
  8.9      (16) payments received for hospice care services; 
  8.10     (17) payments received by a health care provider for 
  8.11  hearing aids and related equipment or prescription eyewear 
  8.12  delivered outside of Minnesota; 
  8.13     (18) payments received by an educational institution from 
  8.14  student tuition, student activity fees, health care service 
  8.15  fees, government appropriations, donations, or grants.  Fee for 
  8.16  service payments and payments for extended coverage are taxable; 
  8.17     (19) payments received for services provided by:  assisted 
  8.18  living programs and congregate housing programs; and 
  8.19     (20) payments received under the federal Employees Health 
  8.20  Benefits Act, United States Code, title 5, section 8909(f), as 
  8.21  amended by the Omnibus Reconciliation Act of 1990. 
  8.22     (b) Payments received by wholesale drug distributors for 
  8.23  legend drugs sold directly to veterinarians or veterinary bulk 
  8.24  purchasing organizations are excluded from the gross revenues 
  8.25  subject to the wholesale drug distributor tax under sections 
  8.26  295.50 to 295.59. 
  8.27     [EFFECTIVE DATE.] This section is effective for payments 
  8.28  received after December 31, 2001. 
  8.29     Sec. 9.  Minnesota Statutes 2000, section 295.57, is 
  8.30  amended by adding a subdivision to read: 
  8.31     Subd. 5.  [EXEMPTION FOR AMOUNTS PAID FOR LEGEND DRUGS.] If 
  8.32  a hospital or health care provider cannot determine the actual 
  8.33  cost or reimbursement of legend drugs under the exemption 
  8.34  provided in section 295.53, subdivision 1, paragraph (a), clause 
  8.35  (6), the following method must be used: 
  8.36     A hospital or health care provider must determine the 
  9.1   amount paid for legend drugs used during the month or quarter 
  9.2   and multiply that amount by a ratio, the numerator of which is 
  9.3   the total amount received for taxable patient services, and the 
  9.4   denominator of which is the total amount received for all 
  9.5   patient services, including amounts exempt under section 295.53, 
  9.6   subdivision 1.  The result represents the allowable exemption 
  9.7   for the monthly or quarterly cost of drugs. 
  9.8      [EFFECTIVE DATE.] This section is effective for payments 
  9.9   received on or after July 1, 2002. 
  9.10     Sec. 10.  Minnesota Statutes 2001 Supplement, section 
  9.11  295.60, subdivision 2, is amended to read: 
  9.12     Subd. 2.  [DEFINITIONS.] (a) For purposes of this section, 
  9.13  the following terms have the meanings given. 
  9.14     (b) "Commissioner" means the commissioner of revenue. 
  9.15     (c) "Furrier" means a retailer that sells clothing made of 
  9.16  fur. 
  9.17     (d) "Clothing made of fur" means articles of clothing made 
  9.18  of fur on the hide or pelt, and articles of clothing of which 
  9.19  such fur is the component material of chief value, but only if 
  9.20  such value is more than three times the value of the next most 
  9.21  valuable material.  
  9.22     (e) "Retail sale" has the meaning given in section 297A.61, 
  9.23  subdivision 4. 
  9.24     (f) "Delivered outside of Minnesota" means fur clothing 
  9.25  which the furrier delivers to a common carrier for delivery 
  9.26  outside Minnesota, places in the United States mail or parcel 
  9.27  post directed to the purchaser outside Minnesota, or delivers to 
  9.28  the purchaser outside Minnesota by means of the seller's own 
  9.29  delivery vehicles, and which is not returned to a point within 
  9.30  Minnesota, except in the course of interstate commerce. 
  9.31     [EFFECTIVE DATE.] This section is effective January 1, 2002.
  9.32     Sec. 11.  Minnesota Statutes 2001 Supplement, section 
  9.33  295.60, is amended by adding a subdivision to read: 
  9.34     Subd. 2a.  [EXEMPTIONS.] Payments received by a furrier for 
  9.35  clothing made of fur delivered outside of Minnesota are exempt 
  9.36  from gross revenues subject to the fur clothing tax. 
 10.1      [EFFECTIVE DATE.] This section is effective for payments 
 10.2   received on or after January 1, 2002. 
 10.3      Sec. 12.  Minnesota Statutes 2001 Supplement, section 
 10.4   297A.61, subdivision 26, is amended to read: 
 10.5      Subd. 26.  [PRIVATE COMMUNICATION SERVICE.] "Private 
 10.6   communication service" means a communication telecommunication 
 10.7   service furnished to a subscriber which that entitles the 
 10.8   subscriber customer to:  
 10.9      (1) exclusive or priority use of any a communication 
 10.10  channel or group of channels; 
 10.11     (2) the use of an intercommunication system for the 
 10.12  subscriber's stations, or regardless of whether the channel, 
 10.13  group of channels, or intercommunication system may be connected 
 10.14  through switching; 
 10.15     (3) the between or among termination points, regardless of 
 10.16  the manner in which the channel or channels are connected, and 
 10.17  includes switching capacity, extension lines and, stations, 
 10.18  or and any other associated services that are provided in 
 10.19  connection with, and are necessary or unique to the use of, the 
 10.20  use of the channel or channels or systems described in clause 
 10.21  (1); or 
 10.22     (4) any combination of tunneling, encryption, 
 10.23  authentication, and access control technologies and services 
 10.24  used to carry traffic over the Internet, a managed Internet 
 10.25  provider network or provider's backbone. 
 10.26     [EFFECTIVE DATE.] This section is effective retroactively 
 10.27  for sales and purchases occurring after July 31, 2001. 
 10.28     Sec. 13.  Minnesota Statutes 2000, section 297G.07, 
 10.29  subdivision 1, is amended to read: 
 10.30     Subdivision 1.  [EXEMPTIONS.] The following are not subject 
 10.31  to the excise tax: 
 10.32     (1) Sales by a manufacturer, brewer, or wholesaler for 
 10.33  shipment outside the state in interstate commerce. 
 10.34     (2) Alcoholic beverages sold or transferred between 
 10.35  Minnesota wholesalers. 
 10.36     (3) Sales to common carriers engaged in interstate 
 11.1   transportation of passengers, except as provided in this chapter.
 11.2      (4) Malt beverages served by a brewery for on-premise 
 11.3   consumption at no charge, or distributed to brewery employees 
 11.4   for on-premise consumption under a labor contract. 
 11.5      (5) Shipments of wine to Minnesota residents under section 
 11.6   340A.417. 
 11.7      (6) Fruit juices naturally fermented or beer naturally 
 11.8   brewed in the home for family use. 
 11.9      (7) Sales of wine for sacramental purposes under section 
 11.10  340A.316. 
 11.11     (8) Alcoholic beverages sold to authorized manufacturers of 
 11.12  food products or pharmaceutical firms.  The alcoholic beverage 
 11.13  must be used exclusively in the manufacture of food products or 
 11.14  medicines.  For purposes of this clause, "manufacturer" means a 
 11.15  person who manufactures food products intended for sale to 
 11.16  wholesalers or retailers for ultimate sale to the consumer. 
 11.17     (9) Liqueur-filled candy. 
 11.18     (10) Sales to a federal agency, that the state of Minnesota 
 11.19  is prohibited from taxing under the constitution or laws of the 
 11.20  United States or under the constitution of Minnesota. 
 11.21     (11) Sales to Indian tribes as defined in section 297G.08. 
 11.22     (12) Shipments of intoxicating liquor from foreign 
 11.23  countries to diplomatic personnel of foreign countries assigned 
 11.24  to service in this state. 
 11.25     [EFFECTIVE DATE.] This section is effective the day 
 11.26  following final enactment. 
 11.27     Sec. 14.  Minnesota Statutes 2000, section 298.27, is 
 11.28  amended to read: 
 11.29     298.27 [COLLECTION AND PAYMENT OF TAX.] 
 11.30     The taxes provided by section 298.24 shall be paid directly 
 11.31  to each eligible county and the iron range resources and 
 11.32  rehabilitation board.  The commissioner of revenue shall notify 
 11.33  each producer of the amount to be paid each recipient prior to 
 11.34  February 15.  Every person subject to taxes imposed by section 
 11.35  298.24 shall file a correct report covering the preceding year.  
 11.36  The report must contain the information required by the 
 12.1   commissioner.  The report shall be filed on or before February 
 12.2   1.  A remittance equal to 100 percent of the total tax required 
 12.3   to be paid hereunder shall be paid by each producer on or before 
 12.4   February 24.  On or before February 25, the county auditor shall 
 12.5   make distribution of the payment received by the county in the 
 12.6   manner provided by section 298.28.  Reports shall be made and 
 12.7   hearings held upon the determination of the tax in accordance 
 12.8   with procedures established by the commissioner of revenue.  The 
 12.9   commissioner of revenue shall have authority to make reasonable 
 12.10  rules as to the form and manner of filing reports necessary for 
 12.11  the determination of the tax hereunder, and by such rules may 
 12.12  require the production of such information as may be reasonably 
 12.13  necessary or convenient for the determination and apportionment 
 12.14  of the tax.  All the provisions of the occupation tax law with 
 12.15  reference to the assessment and determination of the occupation 
 12.16  tax, including all provisions for appeals from or review of the 
 12.17  orders of the commissioner of revenue relative thereto, but not 
 12.18  including provisions for refunds, are applicable to the taxes 
 12.19  imposed by section 298.24 except in so far as inconsistent 
 12.20  herewith.  If any person subject to section 298.24 shall fail to 
 12.21  make the report provided for in this section at the time and in 
 12.22  the manner herein provided, the commissioner of revenue shall in 
 12.23  such case, upon information possessed or obtained, ascertain the 
 12.24  kind and amount of ore mined or produced and thereon find and 
 12.25  determine the amount of the tax due from such person.  There 
 12.26  shall be added to the amount of tax due a penalty for failure to 
 12.27  report on or before February 1, which penalty shall equal ten 
 12.28  percent of the tax imposed and be treated as a part thereof. 
 12.29     If any person responsible for making a tax payment at the 
 12.30  time and in the manner herein provided fails to do so, there 
 12.31  shall be imposed a penalty equal to ten percent of the amount so 
 12.32  due, which penalty shall be treated as part of the tax due. 
 12.33     In the case of any underpayment of the tax payment required 
 12.34  herein, there may be added and be treated as part of the tax due 
 12.35  a penalty equal to ten percent of the amount so underpaid. 
 12.36     A person having a liability of $120,000 or more during a 
 13.1   calendar year must remit all liabilities by means of a funds 
 13.2   transfer as defined in section 336.4A-104, paragraph (a).  The 
 13.3   funds transfer payment date, as defined in section 336.4A-401, 
 13.4   must be on or before the date the tax is due.  If the date the 
 13.5   tax is due is not a funds transfer business day, as defined in 
 13.6   section 336.4A-105, paragraph (a), clause (4), the payment date 
 13.7   must be on or before the funds transfer business day next 
 13.8   following the date the tax is due. 
 13.9      [EFFECTIVE DATE.] This section is effective for years 
 13.10  beginning after December 31, 2001. 
 13.11     Sec. 15.  Minnesota Statutes 2000, section 298.28, 
 13.12  subdivision 5, is amended to read: 
 13.13     Subd. 5.  [COUNTIES.] (a) 16.5 26.05 cents per taxable ton 
 13.14  is allocated to counties to be distributed, based upon 
 13.15  certification by the commissioner of revenue, under paragraphs 
 13.16  (b) to (d). 
 13.17     (b) 13 20.525 cents per taxable ton shall be distributed to 
 13.18  the county in which the taconite is mined or quarried or in 
 13.19  which the concentrate is produced, less any amount which is to 
 13.20  be distributed pursuant to paragraph (c).  The apportionment 
 13.21  formula prescribed in subdivision 2 is the basis for the 
 13.22  distribution. 
 13.23     (c) If an electric power plant owned by and providing the 
 13.24  primary source of power for a taxpayer mining and concentrating 
 13.25  taconite is located in a county other than the county in which 
 13.26  the mining and the concentrating processes are conducted, one 
 13.27  cent per taxable ton of the tax distributed to the counties 
 13.28  pursuant to paragraph (b) and imposed on and collected from such 
 13.29  taxpayer shall be paid to the county in which the power plant is 
 13.30  located. 
 13.31     (d) 3.5 5.525 cents per taxable ton shall be paid to the 
 13.32  county from which the taconite was mined, quarried or 
 13.33  concentrated to be deposited in the county road and bridge 
 13.34  fund.  If the mining, quarrying and concentrating, or separate 
 13.35  steps in any of those processes are carried on in more than one 
 13.36  county, the commissioner shall follow the apportionment formula 
 14.1   prescribed in subdivision 2. 
 14.2      [EFFECTIVE DATE.] This section is effective the day 
 14.3   following final enactment. 
 14.4      Sec. 16.  Minnesota Statutes 2001 Supplement, section 
 14.5   298.28, subdivision 6, is amended to read: 
 14.6      Subd. 6.  [PROPERTY TAX RELIEF.] (a) In 2002 and 
 14.7   thereafter, 35.9 33.9 cents per taxable ton, less any amount 
 14.8   required to be distributed under paragraphs (b) and (c), and 
 14.9   less any amount required to be deducted under paragraph (d), 
 14.10  must be allocated to St. Louis county acting as the counties' 
 14.11  fiscal agent, to be distributed as provided in sections 273.134 
 14.12  to 273.136. 
 14.13     (b) If an electric power plant owned by and providing the 
 14.14  primary source of power for a taxpayer mining and concentrating 
 14.15  taconite is located in a county other than the county in which 
 14.16  the mining and the concentrating processes are conducted, .1875 
 14.17  cent per taxable ton of the tax imposed and collected from such 
 14.18  taxpayer shall be paid to the county. 
 14.19     (c) If an electric power plant owned by and providing the 
 14.20  primary source of power for a taxpayer mining and concentrating 
 14.21  taconite is located in a school district other than a school 
 14.22  district in which the mining and concentrating processes are 
 14.23  conducted, .7282 cent per taxable ton of the tax imposed and 
 14.24  collected from the taxpayer shall be paid to the school district.
 14.25     (d) Two cents per taxable ton must be deducted from the 
 14.26  amount allocated to the St. Louis county auditor under paragraph 
 14.27  (a). 
 14.28     [EFFECTIVE DATE.] This section is effective the day 
 14.29  following final enactment. 
 14.30     Sec. 17.  Minnesota Statutes 2001 Supplement, section 
 14.31  298.28, subdivision 10, is amended to read: 
 14.32     Subd. 10.  [INCREASE.] Beginning with distributions in 
 14.33  2000, the amount determined under subdivision 9 shall be 
 14.34  increased in the same proportion as the increase in the implicit 
 14.35  price deflator as provided in section 298.24, subdivision 1.  
 14.36  Beginning with distributions in 2003, the amount determined 
 15.1   under subdivision 6, paragraph (a), shall be increased in the 
 15.2   same proportion as the increase in the implicit price deflator 
 15.3   as provided in section 298.24, subdivision 1.  
 15.4      The distributions per ton determined under subdivisions 5, 
 15.5   paragraphs (b) and (d), and 6, paragraph (b), for distribution 
 15.6   in 1988 and subsequent years shall be the distribution per ton 
 15.7   determined for distribution in 1987.  The distribution per ton 
 15.8   under subdivision 6, paragraph (c), for distribution in 2000 and 
 15.9   subsequent years shall be 81 percent of the distribution per ton 
 15.10  determined for distribution in 1987. 
 15.11     [EFFECTIVE DATE.] This section is effective the day 
 15.12  following final enactment. 
 15.13     Sec. 18.  Minnesota Statutes 2001 Supplement, section 
 15.14  469.1763, subdivision 6, is amended to read: 
 15.15     Subd. 6.  [POOLING PERMITTED FOR DEFICITS.] (a) This 
 15.16  subdivision applies only to districts for which the request for 
 15.17  certification was made before August 1, 2001, and without regard 
 15.18  to whether the request for certification was made prior to 
 15.19  August 1, 1979. 
 15.20     (b) The municipality for the district may transfer 
 15.21  available increments from another tax increment financing 
 15.22  district located in the municipality, if the transfer is 
 15.23  necessary to eliminate a deficit in the district to which the 
 15.24  increments are transferred.  A deficit in the district for 
 15.25  purposes of this subdivision means the lesser of the following 
 15.26  two amounts: 
 15.27     (1)(i) the amount due during the calendar year to pay 
 15.28  preexisting obligations of the district; minus 
 15.29     (ii) the total increments collected or to be collected from 
 15.30  properties located within the district that are available for 
 15.31  the calendar year including amounts collected in prior years 
 15.32  that are currently available; plus 
 15.33     (iii) total increments from properties located in other 
 15.34  districts in the municipality including amounts collected in 
 15.35  prior years that are available to be used to meet the district's 
 15.36  obligations under this section, excluding this subdivision, or 
 16.1   other provisions of law (but excluding a special tax under 
 16.2   section 469.1791 and the grant program under Laws 1997, chapter 
 16.3   231, article 1, section 19, or Laws 2001, First Special Session 
 16.4   chapter 5); or 
 16.5      (2) the reduction in increments collected from properties 
 16.6   located in the district for the calendar year as a result of the 
 16.7   changes in class rates in Laws 1997, chapter 231, article 1; 
 16.8   Laws 1998, chapter 389, article 2; and Laws 1999, chapter 243, 
 16.9   and Laws 2001, First Special Session chapter 5, or the 
 16.10  elimination of the general education tax levy under Laws 2001, 
 16.11  First Special Session chapter 5. 
 16.12     (c) A preexisting obligation means: 
 16.13     (1) bonds issued and sold before August 1, 2001, or bonds 
 16.14  issued pursuant to a binding contract requiring the issuance of 
 16.15  bonds entered into before July 1, 2001, and bonds issued to 
 16.16  refund such bonds or to reimburse expenditures made in 
 16.17  conjunction with a signed contractual agreement entered into 
 16.18  before August 1, 2001, to the extent that the bonds are secured 
 16.19  by a pledge of increments from the tax increment financing 
 16.20  district; and 
 16.21     (2) binding contracts entered into before August 1, 2001, 
 16.22  to the extent that the contracts require payments secured by a 
 16.23  pledge of increments from the tax increment financing district. 
 16.24     (d) The municipality may require a development authority, 
 16.25  other than a seaway port authority, to transfer available 
 16.26  increments including amounts collected in prior years that are 
 16.27  currently available for any of its tax increment financing 
 16.28  districts in the municipality to make up an insufficiency in 
 16.29  another district in the municipality, regardless of whether the 
 16.30  district was established by the development authority or another 
 16.31  development authority.  This authority applies notwithstanding 
 16.32  any law to the contrary, but applies only to a development 
 16.33  authority that: 
 16.34     (1) was established by the municipality; or 
 16.35     (2) the governing body of which is appointed, in whole or 
 16.36  part, by the municipality or an officer of the municipality or 
 17.1   which consists, in whole or part, of members of the governing 
 17.2   body of the municipality.  The municipality may use this 
 17.3   authority only after it has first used all available increments 
 17.4   of the receiving development authority to eliminate the 
 17.5   insufficiency and exercised any permitted action under section 
 17.6   469.1792, subdivision 3, for preexisting districts of the 
 17.7   receiving development authority to eliminate the insufficiency. 
 17.8      (e) The authority under this subdivision to spend tax 
 17.9   increments outside of the area of the district from which the 
 17.10  tax increments were collected: 
 17.11     (1) may only be exercised after obtaining approval of the 
 17.12  use of the increments, in writing, by the commissioner of 
 17.13  revenue; 
 17.14     (2) is an exception to the restrictions under section 
 17.15  469.176, subdivision 4i, and the other provisions of this 
 17.16  section, and the percentage restrictions under subdivision 2 
 17.17  must be calculated after deducting increments spent under this 
 17.18  subdivision from the total increments for the district; and 
 17.19     (3) applies notwithstanding the provisions of the Tax 
 17.20  Increment Financing Act in effect for districts for which the 
 17.21  request for certification was made before June 30, 1982, or any 
 17.22  other law to the contrary. 
 17.23     (f) If a preexisting obligation requires the development 
 17.24  authority to pay an amount that is limited to the increment from 
 17.25  the district or a specific development within the district and 
 17.26  if the obligation requires paying a higher amount to the extent 
 17.27  that increments are available, the municipality may determine 
 17.28  that the amount due under the preexisting obligation equals the 
 17.29  higher amount and may authorize the transfer of increments under 
 17.30  this subdivision to pay up to the higher amount.  The authority 
 17.31  to transfer increments under this paragraph may only be used to 
 17.32  the extent that the payment of all other preexisting obligations 
 17.33  in the municipality due during the calendar year have been 
 17.34  satisfied. 
 17.35     [EFFECTIVE DATE.] This section is effective retroactively 
 17.36  to January 2, 2002, and thereafter. 
 18.1      Sec. 19.  [REPEALER.] 
 18.2      Minnesota Statutes 2000, section 278.01, subdivision 4, is 
 18.3   repealed effective for taxes payable in 2003 and thereafter.