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Capital IconMinnesota Legislature

SF 3843

as introduced - 91st Legislature (2019 - 2020) Posted on 04/30/2020 09:26am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to taxation; making various policy and technical changes to individual
income and corporate franchise taxes, partnership taxes, property taxes, fire and
police state aids, and other miscellaneous taxes and tax provisions; amending
Minnesota Statutes 2018, sections 270.41, subdivision 3a; 270C.445, subdivisions
3, 6; 272.029, subdivision 2; 272.0295, subdivisions 2, 5; 273.063; 287.04;
289A.31, subdivision 1; 289A.37, subdivision 2; 289A.38, subdivisions 8, 9, 10;
289A.42; 289A.60, subdivision 24; 290.31, subdivision 1; 295.75, subdivision 2;
297F.04, subdivision 2; 297F.17, subdivisions 1, 6; 297G.16, subdivision 7;
469.319, subdivision 4; 477A.10; 609B.153; Minnesota Statutes 2019 Supplement,
sections 6.495, subdivision 3; 270C.22, subdivision 1; 273.0755; 273.124,
subdivision 14; 273.18; 289A.08, subdivision 7; 289A.20, subdivision 4; 289A.38,
subdivision 7; 290.0121, subdivision 3; 290.0122, subdivision 8; 290.191,
subdivision 5; 290.92, subdivision 5; 290.993; 290A.19; 296A.06, subdivision 2;
297A.66, subdivision 3; 297F.09, subdivision 10; 297G.09, subdivision 9; 297I.26,
subdivision 2; 477B.01, subdivisions 5, 10, 11, by adding subdivisions; 477B.02,
subdivisions 2, 3, 5, 8, 9, 10, by adding a subdivision; 477B.03, subdivisions 3,
4, 7; 477B.04, subdivision 1, by adding a subdivision; 477C.02, subdivision 4;
477C.03, subdivisions 2, 5; 477C.04, by adding a subdivision; proposing coding
for new law in Minnesota Statutes, chapter 289A; repealing Minnesota Statutes
2018, section 270C.17, subdivision 2; Minnesota Statutes 2019 Supplement,
sections 477B.02, subdivision 4; 477B.03, subdivision 6.

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

ARTICLE 1

INCOME AND CORPORATE FRANCHISE TAXES

Section 1.

Minnesota Statutes 2019 Supplement, section 289A.08, subdivision 7, is
amended to read:


Subd. 7.

Composite income tax returns for nonresident partners, shareholders, and
beneficiaries.

(a) The commissioner may allow a partnership with nonresident partners to
file a composite return and to pay the tax on behalf of nonresident partners who have no
other Minnesota source income. This composite return must include the names, addresses,
Social Security numbers, income allocation, and tax liability for the nonresident partners
electing to be covered by the composite return.

(b) The computation of a partner's tax liability must be determined by multiplying the
income allocated to that partner by the highest rate used to determine the tax liability for
individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard
deductions, or personal exemptions are not allowed.

(c) The partnership must submit a request to use this composite return filing method for
nonresident partners. The requesting partnership must file a composite return in the form
prescribed by the commissioner of revenue. The filing of a composite return is considered
a request to use the composite return filing method.

(d) The electing partner must not have any Minnesota source income other than the
income from the partnership and other electing partnerships. If it is determined that the
electing partner has other Minnesota source income, the inclusion of the income and tax
liability for that partner under this provision will not constitute a return to satisfy the
requirements of subdivision 1. The tax paid for the individual as part of the composite return
is allowed as a payment of the tax by the individual on the date on which the composite
return payment was made. If the electing nonresident partner has no other Minnesota source
income, filing of the composite return is a return for purposes of subdivision 1.

(e) This subdivision does not negate the requirement that an individual pay estimated
tax if the individual's liability would exceed the requirements set forth in section 289A.25.
The individual's liability to pay estimated tax is, however, satisfied when the partnership
pays composite estimated tax in the manner prescribed in section 289A.25.

(f) If an electing partner's share of the partnership's gross income from Minnesota sources
is less than the filing requirements for a nonresident under this subdivision, the tax liability
is zero. However, a statement showing the partner's share of gross income must be included
as part of the composite return.

(g) The election provided in this subdivision is only available to a partner who has no
other Minnesota source income and who is either (1) a full-year nonresident individual or
(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the
Internal Revenue Code.

(h) A corporation defined in section 290.9725 and its nonresident shareholders may
make an election under this paragraph. The provisions covering the partnership apply to
the corporation and the provisions applying to the partner apply to the shareholder.

(i) Estates and trusts distributing current income only and the nonresident individual
beneficiaries of the estates or trusts may make an election under this paragraph. The
provisions covering the partnership apply to the estate or trust. The provisions applying to
the partner apply to the beneficiary.

(j) For the purposes of this subdivision, "income" means the partner's share of federal
adjusted gross income from the partnership modified by the additions provided in section
290.0131, subdivisions 8 to 10 deleted text beginanddeleted text endnew text begin,new text end 16, new text beginand 17, new text endand the subtractions provided in: (1) section
290.0132, deleted text beginsubdivisiondeleted text endnew text begin subdivisionsnew text end 9, new text begin27, and 28, new text endto the extent the amount is assignable or
allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. The
subtraction allowed under section 290.0132, subdivision 9, is only allowed on the composite
tax computation to the extent the electing partner would have been allowed the subtraction.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2019 Supplement, section 290.0121, subdivision 3, is amended
to read:


Subd. 3.

Inflation adjustment.

For taxable years beginning after December 31, 2019,
the commissioner must adjust for inflation the exemption amount in subdivision 1, paragraph
(a), clause (1), and the threshold amounts in subdivision 2, as provided in section 270C.22.
The statutory year is taxable year 2019. The amounts as adjusted must be rounded down to
the nearest $50 amount. deleted text beginIf the amount ends in $25, the amount is rounded down to the
nearest $50 amount.
deleted text end The threshold amount for married individuals filing separate returns
must be one-half of the adjusted amount for married individuals filing joint returns.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2019 Supplement, section 290.0122, subdivision 8, is amended
to read:


Subd. 8.

Losses.

A taxpayer is allowed a deduction for lossesdeleted text begin. The deduction equals the
amount
deleted text end allowed under deleted text beginsections 165(d) anddeleted text endnew text begin section 165(a) of the Internal Revenue Code,
including the limitation provided by section 67(b)(3) of the Internal Revenue Code, for the
following:
new text end

new text begin (1) losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue
Code, including the provisions of section
new text end 165(h) of the Internal Revenue Code, new text beginbut
new text end disregarding deleted text beginthe limitation on personal casualty losses indeleted text end paragraph (h)(5)deleted text begin.deleted text endnew text begin; and
new text end

new text begin (2) losses described in section 165(d) of the Internal Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2018.
new text end

Sec. 4.

Minnesota Statutes 2019 Supplement, section 290.191, subdivision 5, is amended
to read:


Subd. 5.

Determination of sales factor.

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

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

(1) interest;

(2) dividends;

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

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

(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue
Code or sales of stockdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (6) receipts from trading options, futures contracts, forward contracts, foreign currency
transactions, and notional principal contracts such as currency and equity swaps.
new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2019 Supplement, section 290.92, subdivision 5, is amended
to read:


Subd. 5.

deleted text beginExemptionsdeleted text endnew text begin Allowancesnew text end.

deleted text begin(1) Entitlement.deleted text endnew text begin (a)new text end An employee receiving wages
shall on any day be entitled to claim withholding deleted text beginexemptionsdeleted text endnew text begin allowancesnew text end in a number not
to exceed the number of withholding deleted text beginexemptionsdeleted text endnew text begin allowancesnew text end that the employee claims and
that are allowable deleted text beginpursuant to section 3402(f)(1), (m), and (n) of the Internal Revenue Code
for federal withholding purposes, except
deleted text endnew text begin under paragraph (b), clause (1). Allowances must
be computed in the form and manner prescribed by the commissioner.
new text end

new text begin (b) Allowances allowed equalnew text end:

new text begin (1) the allowances allowed under section 3402(f)(1) of the Internal Revenue Code,
except:
new text end

new text begin (i) withholding allowances under section 3402(f)(1)(C) and (D) of the Internal Revenue
Code are not allowed; and
new text end

new text begin (ii) the amount allowed for the standard deduction under section 3402(f)(1)(E) of the
Internal Revenue Code is the amount allowed under section 290.0123;
new text end

new text begin (2) the amount allowed under section 290.0121;
new text end

new text begin (3) estimated itemized deductions allowable under section 290.0122, but only if the
employee's spouse does not have in effect a withholding certificate electing this allowance;
and
new text end

new text begin (4) any additional allowances, at the discretion of the commissioner, that are in the best
interests of determining the proper amount to withhold for the payment of taxes under this
chapter.
new text end

deleted text begin (i) the standard deduction amount for the purposes of section 3402(f)(1)(E) of the Internal
Revenue Code shall be the amount calculated under section 290.0123, subdivision 1; and
deleted text end

deleted text begin (ii) the exemption amount for the purposes of section 3402(f)(1)(A) of the Internal
Revenue Code shall be the amount calculated under section 290.0121, subdivision 1.
deleted text end

deleted text begin (2) Withholding exemption certificate.deleted text endnew text begin (c)new text end The provisions concerning exemption
certificates contained in section 3402(f)(2) and (3) of the Internal Revenue Code shall apply.

deleted text begin (3) Form of certificate.deleted text endnew text begin (d)new text end Withholding exemption certificates shall be in such form
and contain such information as the commissioner may by rule prescribe.

new text begin (e) An employer is not required to deduct and withhold tax under this chapter if an
employee certifies that the employee will incur no tax liability under section 3402(n) of the
Internal Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2019.
new text end

Sec. 6.

Minnesota Statutes 2019 Supplement, section 290.993, is amended to read:


290.993 SPECIAL LIMITED ADJUSTMENT.

(a) For an individual deleted text beginincome taxpayer subject to tax under section 290.06, subdivision
2c
deleted text endnew text begin, estate, or trustnew text end, or a partnership that elects to file a composite return under section
289A.08, subdivision 7, for taxable years beginning after December 31, 2017, and before
January 1, 2019, the following special rules apply:

(1) an individual income taxpayer may: (i) take the standard deduction; or (ii) make an
election under section 63(e) of the Internal Revenue Code to itemize, for Minnesota individual
income tax purposes, regardless of the choice made on their federal return; and

(2) there is an adjustment to tax equal to the difference between the tax calculated under
this chapter using the Internal Revenue Code as amended through December 16, 2016, and
the tax calculated under this chapter using the Internal Revenue Code amended through
December 31, 2018, before the application of credits. The end result must be zero additional
tax due or refund.

(b) The adjustment in paragraph (a), clause (2), does not apply to any changes due to
sections 11012, 13101, 13201, 13202, 13203, 13204, 13205, 13207, 13301, 13302, 13303,
13313, 13502, 13503, 13801, 14101, 14102, 14211 through 14215, and 14501 of Public
Law 115-97; and section 40411 of Public Law 115-123.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, and before January 1, 2019.
new text end

ARTICLE 2

PARTNERSHIP TAX

Section 1.

Minnesota Statutes 2018, section 270C.445, subdivision 6, is amended to read:


Subd. 6.

Enforcement; administrative order; penalties; cease and desist.

(a) The
commissioner may impose an administrative penalty of not more than $1,000 per violation
of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed
for any conduct for which a tax preparer penalty is imposed under section 289A.60,
subdivision 13
. The commissioner may terminate a tax preparer's authority to transmit
returns electronically to the state, if the commissioner determines the tax preparer engaged
in a pattern and practice of violating this section. Imposition of a penalty under this paragraph
is subject to the contested case procedure under chapter 14. The commissioner shall collect
the penalty in the same manner as the income tax. There is no right to make a claim for
refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed
under this paragraph are public data.

(b) In addition to the penalty under paragraph (a), if the commissioner determines that
a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may
issue an administrative order to the tax preparer requiring the tax preparer to cease and
desist from committing the violation. The administrative order may include an administrative
penalty provided in paragraph (a).

(c) If the commissioner issues an administrative order under paragraph (b), the
commissioner must send the order to the tax preparer addressed to the last known address
of the tax preparer.

(d) A cease and desist order under paragraph (b) must:

(1) describe the act, conduct, or practice committed and include a reference to the law
that the act, conduct, or practice violates; and

(2) provide notice that the tax preparer may request a hearing as provided in this
subdivision.

(e) Within 30 days after the commissioner issues an administrative order under paragraph
(b), the tax preparer may request a hearing to review the commissioner's action. The request
for hearing must be made in writing and must be served on the commissioner at the address
specified in the order. The hearing request must specifically state the reasons for seeking
review of the order. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed.

(f) If a tax preparer does not timely request a hearing regarding an administrative order
issued under paragraph (b), the order becomes a final order of the commissioner and is not
subject to review by any court or agency.

(g) If a tax preparer timely requests a hearing regarding an administrative order issued
under paragraph (b), the hearing must be commenced within ten days after the commissioner
receives the request for a hearing.

(h) A hearing timely requested under paragraph (e) is subject to the contested case
procedure under chapter 14, as modified by this subdivision. The administrative law judge
must issue a report containing findings of fact, conclusions of law, and a recommended
order within ten days after the completion of the hearing, the receipt of late-filed exhibits,
or the submission of written arguments, whichever is later.

(i) Within five days of the date of the administrative law judge's report issued under
paragraph (h), any party aggrieved by the administrative law judge's report may submit
written exceptions and arguments to the commissioner. Within 15 days after receiving the
administrative law judge's report, the commissioner must issue an order vacating, modifying,
or making final the administrative order.

(j) The commissioner and the tax preparer requesting a hearing may by agreement
lengthen any time periods prescribed in paragraphs (g) to (i).

(k) An administrative order issued under paragraph (b) is in effect until it is modified
or vacated by the commissioner or an appellate court. The administrative hearing provided
by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute
the exclusive remedy for a tax preparer aggrieved by the order.

(l) The commissioner may impose an administrative penalty, in addition to the penalty
under paragraph (a), up to $5,000 per violation of a cease and desist order issued under
paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case
procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under
this paragraph, the tax preparer assessed the penalty may request a hearing to review the
penalty order. The request for hearing must be made in writing and must be served on the
commissioner at the address specified in the order. The hearing request must specifically
state the reasons for seeking review of the order. The cease and desist order issued under
paragraph (b) is not subject to review in a proceeding to challenge the penalty order under
this paragraph. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed. If the tax preparer does not
timely request a hearing, the penalty order becomes a final order of the commissioner and
is not subject to review by any court or agency. A penalty imposed by the commissioner
under this paragraph may be collected and enforced by the commissioner as an income tax
liability. There is no right to make a claim for refund under section 289A.50 of the penalty
imposed under this paragraph. A penalty imposed under this paragraph is public data.

(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the
commissioner may terminate the tax preparer's authority to transmit returns electronically
to the state. Termination under this paragraph is public data.

(n) A cease and desist order issued under paragraph (b) is public data when it is a final
order.

(o) Notwithstanding any other law, the commissioner may impose a penalty or take other
action under this subdivision against a tax preparer, with respect to a return, within the
period to assess tax on that return as provided by deleted text beginsectiondeleted text endnew text begin sectionsnew text end 289A.38new text begin and 289A.382new text end.

(p) Notwithstanding any other law, the imposition of a penalty or any other action against
a tax preparer under this subdivision, other than with respect to a return, must be taken by
the commissioner within five years of the violation of statute.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 2.

Minnesota Statutes 2018, section 289A.31, subdivision 1, is amended to read:


Subdivision 1.

Individual income, fiduciary income, mining company, corporate
franchise, and entertainment taxes.

(a) Individual income, fiduciary income, mining
company, and corporate franchise taxes, and interest and penalties, must be paid by the
taxpayer upon whom the tax is imposed, except in the following cases:

(1) the tax due from a decedent for that part of the taxable year in which the decedent
died during which the decedent was alive and the taxes, interest, and penalty due for the
prior years must be paid by the decedent's personal representative, if any. If there is no
personal representative, the taxes, interest, and penalty must be paid by the transferees, as
defined in section 270C.58, subdivision 3, to the extent they receive property from the
decedent;

(2) the tax due from an infant or other incompetent person must be paid by the person's
guardian or other person authorized or permitted by law to act for the person;

(3) the tax due from the estate of a decedent must be paid by the estate's personal
representative;

(4) the tax due from a trust, including those within the definition of a corporation, as
defined in section 290.01, subdivision 4, must be paid by a trustee; and

(5) the tax due from a taxpayer whose business or property is in charge of a receiver,
trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge
of the business or property so far as the tax is due to the income from the business or property.

(b) Entertainment taxes are the joint and several liability of the entertainer and the
entertainment entity. The payor is liable to the state for the payment of the tax required to
be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the
entertainer for the amount of the payment.

(c) The taxes imposed under sections 289A.35new text begin, paragraph (b); 289A.382, subdivision
3;
new text end and 290.0922 on partnerships are the joint and several liability of the partnership and the
general partners.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 3.

Minnesota Statutes 2018, section 289A.37, subdivision 2, is amended to read:


Subd. 2.

Erroneous refunds.

(a) Except as provided in paragraph (b), an erroneous
refund occurs when the commissioner issues a payment to a person that exceeds the amount
the person is entitled to receive under law. An erroneous refund is considered an
underpayment of tax on the date issued.

(b) To the extent that the amount paid does not exceed the amount claimed by the
taxpayer, an erroneous refund does not include the following:

(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a
taxpayer, including but not limited to refunds of claims made under section 290.06,
subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
290.0681; or 290.0692; or chapter 290A; or

(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
taxpayer.

(c) The commissioner may make an assessment to recover an erroneous refund at any
time within two years from the issuance of the erroneous refund. If all or part of the erroneous
refund was induced by fraud or misrepresentation of a material fact, the assessment may
be made at any time.

(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
conducted under deleted text beginsectiondeleted text endnew text begin sectionsnew text end 289A.38new text begin and 289A.382new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 4.

Minnesota Statutes 2019 Supplement, section 289A.38, subdivision 7, is amended
to read:


Subd. 7.

Federal tax changes.

(a) If the amount of income, items of tax preference,
deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any
period, as reported to the Internal Revenue Service is changed or corrected by the
commissioner of Internal Revenue or other officer of the United States or other competent
authority, or where a renegotiation of a contract or subcontract with the United States results
in a change in income, items of tax preference, deductions, credits, or withholding tax, or,
in the case of estate tax, where there are adjustments to the taxable estate, the taxpayer shall
report the deleted text beginchange or correction or renegotiation resultsdeleted text endnew text begin federal adjustmentsnew text end in writing to the
commissioner. The new text beginfederal adjustment new text endreport must be submitted within 180 days after the
final determination new text begindate new text endand must be in the form of either an amended Minnesota estate,
withholding tax, corporate franchise tax, or income tax return conceding the accuracy of
the federal deleted text begindeterminationdeleted text endnew text begin adjustmentnew text end or a letter detailing how the federal deleted text begindeterminationdeleted text endnew text begin
adjustment
new text end is incorrect or does not change the Minnesota tax. An amended Minnesota
income tax return must be accompanied by an amended property tax refund return, if
necessary. A taxpayer filing an amended federal tax return must also file a copy of the
amended return with the commissioner of revenue within 180 days after filing the amended
return.

(b) deleted text beginFor the purposes of paragraph (a), a change or correction includes any case where a
taxpayer reaches a closing agreement or compromise with the Internal Revenue Service
under section 7121 or 7122 of the Internal Revenue Code.
deleted text endnew text begin In the case of a final federal
adjustment arising from a partnership-level audit or an administrative adjustment request
filed by a partnership under section 6227 of the Internal Revenue Code, a taxpayer must
report adjustments as provided for under section 289A.382, and not this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 5.

Minnesota Statutes 2018, section 289A.38, subdivision 8, is amended to read:


Subd. 8.

Failure to report change or correction of federal return.

If a taxpayer fails
to make anew text begin federal adjustmentsnew text end report as required by subdivision 7new text begin or section 289A.382new text end, the
commissioner may recompute the tax, including a refund, based on information available
to the commissioner. The tax may be recomputed within six years after thenew text begin federal
adjustments
new text end report should have been filed, notwithstanding any period of limitations to the
contrary.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 6.

Minnesota Statutes 2018, section 289A.38, subdivision 9, is amended to read:


Subd. 9.

Report made of change or correction of federal return.

If a taxpayer is
required to make anew text begin federal adjustmentsnew text end report under subdivision 7new text begin or section 289A.382new text end, and
does report the change or files a copy of the amended return, the commissioner may
recompute and reassess the tax due, including a refund (1) within one year after thenew text begin federal
adjustments
new text end report or amended return is filed with the commissioner, notwithstanding any
period of limitations to the contrary, or (2) within any other applicable period stated in this
section, whichever period is longer. The period provided for the carryback of any amount
of loss or credit is also extended as provided in this subdivision, notwithstanding any law
to the contrary. If the commissioner has completed a field audit of the taxpayer, and, but
for this subdivision, the commissioner's time period to adjust the tax has expired, the
additional tax due or refund is limited to only those changes that are required to be made
to the return which relate to the changes made on the federal return. This subdivision does
not apply to sales and use tax.

For purposes of this subdivision and section 289A.42, subdivision 2, a "field audit" is
the physical presence of examiners in the taxpayer's or taxpayer's representative's office
conducting an examination of the taxpayer with the intention of issuing an assessment or
notice of change in tax or which results in the issuing of an assessment or notice of change
in tax. The examination may include inspecting a taxpayer's place of business, tangible
personal property, equipment, computer systems and facilities, pertinent books, records,
papers, vouchers, computer printouts, accounts, and documents.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 7.

Minnesota Statutes 2018, section 289A.38, subdivision 10, is amended to read:


Subd. 10.

Incorrect determination of federal adjusted gross income.

Notwithstanding
any other provision of this chapter, if a taxpayer whose net income is determined under
section 290.01, subdivision 19, omits from income an amount that will under the Internal
Revenue Code extend the statute of limitations for the assessment of federal income taxes,
or otherwise incorrectly determines the taxpayer's federal adjusted gross income resulting
in adjustments by the Internal Revenue Service, then the period of assessment and
determination of tax will be that under the Internal Revenue Code. When a change is made
to federal income during the extended time provided under this subdivision, the provisions
under subdivisions 7 to 9new text begin and section 289A.382new text end regarding additional extensions apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 8.

new text begin [289A.381] DEFINITIONS; PARTNERSHIPS; FEDERAL ADJUSTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions relating to federal adjustments. new text end

new text begin Unless otherwise specified,
the definitions in this section apply for the purposes of sections 289A.38, subdivisions 7 to
9; 289A.381; and 289A.382.
new text end

new text begin Subd. 2. new text end

new text begin Administrative adjustment request. new text end

new text begin "Administrative adjustment request"
means an administrative adjustment request filed by a partnership under section 6227 of
the Internal Revenue Code.
new text end

new text begin Subd. 3. new text end

new text begin Audited partnership. new text end

new text begin "Audited partnership" means a partnership subject to a
federal adjustment resulting from a partnership-level audit.
new text end

new text begin Subd. 4. new text end

new text begin Corporate partner. new text end

new text begin "Corporate partner" means a partner that is subject to tax
under section 290.02.
new text end

new text begin Subd. 5. new text end

new text begin Direct partner. new text end

new text begin "Direct partner" means a partner that holds an immediate legal
ownership interest in a partnership or pass-through entity.
new text end

new text begin Subd. 6. new text end

new text begin Exempt partner. new text end

new text begin "Exempt partner" means a partner that is exempt from taxes
on its net income under section 290.05, subdivision 1.
new text end

new text begin Subd. 7. new text end

new text begin Federal adjustment. new text end

new text begin "Federal adjustment" means any change in an amount
calculated under the Internal Revenue Code, whether to income, gross estate, a credit, an
item of preference, or any other item that is used by a taxpayer to compute a tax administered
under this chapter for the reviewed year whether that change results from action by the
Internal Revenue Service or other competent authority, including a partnership-level audit,
or the filing of an amended federal return, federal refund claim, or an administrative
adjustment request by the taxpayer.
new text end

new text begin Subd. 8. new text end

new text begin Federal adjustments report. new text end

new text begin "Federal adjustments report" includes a method
or form prescribed by the commissioner for use by a taxpayer to report federal adjustments,
including an amended Minnesota tax return or a uniform multistate report.
new text end

new text begin Subd. 9. new text end

new text begin Federal partnership representative. new text end

new text begin "Federal partnership representative"
means the person the partnership designates for the taxable year as the partnership's
representative, or the person the Internal Revenue Service has appointed to act as the
partnership representative, pursuant to section 6223(a) of the Internal Revenue Code.
new text end

new text begin Subd. 10. new text end

new text begin Final determination date. new text end

new text begin "Final determination date" means:
new text end

new text begin (1) for a federal adjustment arising from an audit by the Internal Revenue Service or
other competent authority, the first day on which no federal adjustment arising from that
audit remains to be finally determined, whether by agreement, or, if appealed or contested,
by a final decision with respect to which all rights of appeal have been waived or exhausted;
new text end

new text begin (2) for a federal adjustment arising from an audit or other action by the Internal Revenue
Service or other competent authority, if the taxpayer filed as a member of a combined report
under section 290.17, subdivision 4, the first day on which no federal adjustments arising
from that audit remain to be finally determined, as described in clause (1), for the entire
group;
new text end

new text begin (3) for a federal adjustment arising from the filing of an amended federal return, a federal
refund claim, or the filing by a partnership of an administrative adjustment request, the day
which the amended return, refund claim, or administrative adjustment request was filed; or
new text end

new text begin (4) for agreements required to be signed by the Internal Revenue Service and the taxpayer,
the date on which the last party signed the agreement.
new text end

new text begin Subd. 11. new text end

new text begin Final federal adjustment. new text end

new text begin "Final federal adjustment" means a federal
adjustment for which the final determination date for that federal adjustment has passed.
new text end

new text begin Subd. 12. new text end

new text begin Indirect partner. new text end

new text begin "Indirect partner" means either:
new text end

new text begin (1) a partner in a partnership or pass-through entity that itself holds an immediate legal
ownership interest in another partnership or pass-through entity; or
new text end

new text begin (2) a partner in a partnership or pass-through entity that holds an indirect interest in
another partnership or pass-through entity through another indirect partner.
new text end

new text begin Subd. 13. new text end

new text begin Partner. new text end

new text begin "Partner" means a person that holds an interest directly or indirectly
in a partnership or other pass-through entity.
new text end

new text begin Subd. 14. new text end

new text begin Partnership. new text end

new text begin The term "partnership" has the meaning provided under section
7701(a)(2) of the Internal Revenue Code.
new text end

new text begin Subd. 15. new text end

new text begin Partnership-level audit. new text end

new text begin "Partnership-level audit" means an examination by
the Internal Revenue Service at the partnership level pursuant to subtitle F, chapter 63,
subchapter C, of the Internal Revenue Code, which results in federal adjustments and
adjustments to partnership-related items.
new text end

new text begin Subd. 16. new text end

new text begin Pass-through entity. new text end

new text begin "Pass-through entity" means an entity, other than a
partnership, that is not subject to the tax imposed under section 290.02. The term pass-through
entity includes but is not limited to S corporations, estates, and trusts other than grantor
trusts.
new text end

new text begin Subd. 17. new text end

new text begin Resident partner. new text end

new text begin "Resident partner" means an individual, trust, or estate
partner who is a resident of Minnesota under section 290.01, subdivision 7, 7a, or 7b, for
the relevant tax period.
new text end

new text begin Subd. 18. new text end

new text begin Reviewed year. new text end

new text begin "Reviewed year" means the taxable year of a partnership that
is subject to a partnership-level audit from which federal adjustments arise.
new text end

new text begin Subd. 19. new text end

new text begin Tiered partner. new text end

new text begin "Tiered partner" means any partner that is a partnership or
pass-through entity.
new text end

new text begin Subd. 20. new text end

new text begin Unrelated business taxable income. new text end

new text begin "Unrelated business taxable income"
has the same meaning as defined in section 512 of the Internal Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 9.

new text begin [289A.382] REPORTING AND PAYMENT REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin State partnership representative. new text end

new text begin (a) With respect to an action required
or permitted to be taken by a partnership under this section, or in a proceeding under section
270C.35 or 271.06, the state partnership representative for the reviewed year shall have the
sole authority to act on behalf of the partnership, and its direct partners and indirect partners
shall be bound by those actions.
new text end

new text begin (b) The state partnership representative for the reviewed year is the partnership's federal
partnership representative unless the partnership, in a form and manner prescribed by the
commissioner, designates another person as its state partnership representative.
new text end

new text begin Subd. 2. new text end

new text begin Reporting and payment requirements for partnerships and tiered
partners.
new text end

new text begin (a) Unless an audited partnership makes the election in subdivision 3, or for
adjustments required to be reported for federal purposes under section 6225(a)(2) of the
Internal Revenue Code, then, for all final federal adjustments the audited partnership must
comply with paragraph (b) and each direct partner of the audited partnership, other than a
tiered partner, must comply with paragraph (c).
new text end

new text begin (b) No later than 90 days after the final determination date, the audited partnership must:
new text end

new text begin (1) file a completed federal adjustments report, including all partner-level information
required under section 289A.12, subdivision 3, with the commissioner;
new text end

new text begin (2) notify each of its direct partners of their distributive share of the final federal
adjustments;
new text end

new text begin (3) file an amended composite report for all direct partners who were included in a
composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the
additional amount that would have been due had the federal adjustments been reported
properly as required; and
new text end

new text begin (4) file amended withholding reports for all direct partners who were or should have
been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed
year, and pay the additional amount that would have been due had the federal adjustments
been reported properly as required.
new text end

new text begin (c) No later than 180 days after the final determination date, each direct partner, other
than a tiered partner, that is subject to a tax administered under this chapter, other than the
sales tax, must:
new text end

new text begin (1) file a federal adjustments report reporting their distributive share of the adjustments
reported to them under paragraph (b), clause (2); and
new text end

new text begin (2) pay any additional amount of tax due as if the final federal adjustment had been
properly reported, plus any penalty and interest due under this chapter, and less any credit
for related amounts paid or withheld and remitted on behalf of the direct partner under
paragraph (b), clauses (3) and (4).
new text end

new text begin Subd. 3. new text end

new text begin Election; partnership or tiered partners pay. new text end

new text begin (a) An audited partnership may
make an election under this subdivision to pay its assessment at the entity level. If an audited
partnership makes an election to pay its assessment at the entity level it must:
new text end

new text begin (1) no later than 90 days after the final determination date, file a completed federal
adjustments report, including the residency information for all individual partners, both
direct and indirect, and information pertaining to all other partners as prescribed by the
commissioner, and notify the commissioner that it is making the election under this
subdivision; and
new text end

new text begin (2) no later than 180 days after the final determination date, pay an amount, determined
as follows, in lieu of taxes on partners:
new text end

new text begin (i) exclude from final federal adjustments the distributive share of these adjustments
made to an exempt partner that is not unrelated business taxable income;
new text end

new text begin (ii) exclude from final federal adjustments the distributive share of these adjustments
made to a partner that has filed a federal adjustments report and paid the applicable tax, as
required under subdivision 2, for the distributive share of adjustments reported on a federal
return under section 6225(c) of the Internal Revenue Code;
new text end

new text begin (iii) allocate at the partner level using section 290.17, subdivision 1, all final federal
adjustments attributable to resident partners, both direct and indirect, for the reviewed year;
new text end

new text begin (iv) assign and apportion at the partnership level using sections 290.17 to 290.20 all
remaining final federal adjustments for the reviewed year;
new text end

new text begin (v) determine the total distributive share of the final federal adjustments allocated in
item (iii) and assigned and apportioned in item (iv) that are attributable to:
new text end

new text begin (A) resident individual partners;
new text end

new text begin (B) corporate partners and exempt partners; and
new text end

new text begin (C) the total distributive share amount assigned and apportioned to all other partners;
new text end

new text begin (vi) for the total distributive share of net final federal adjustments attributed to corporate
partners and exempt partners under item (v), subitem (B), multiply the total by the highest
tax rate in section 290.06, subdivision 1, for the reviewed year, and calculate interest and
penalties as applicable under this chapter;
new text end

new text begin (vii) for the total distributive share of net final federal adjustments attributable to resident
partners, and all other partners under item (v), subitems (A) and (C), multiply the total by
the highest tax rate in section 290.06, subdivision 2c, for the reviewed year, and calculate
interest and penalties as applicable under this chapter; and
new text end

new text begin (viii) add the amount determined in item (vi) to the amount determined in item (vii),
and pay all applicable taxes, penalties, and interest to the commissioner.
new text end

new text begin (b) An audited partnership may not make an election under this subdivision to report:
new text end

new text begin (1) a federal adjustment that results in unitary business income to a corporate partner
required to file as a member of a combined report under section 290.17, subdivision 4; or
new text end

new text begin (2) any final federal adjustments resulting from an administrative adjustment request.
new text end

new text begin Subd. 4. new text end

new text begin Tiered partners and indirect partners. new text end

new text begin (a) Each tiered partner and each
indirect partner of an audited partnership that reported final federal adjustments pursuant
to subdivision 2, paragraph (b), clause (1), or this subdivision, must:
new text end

new text begin (1) within 90 days of the report comply with the filing, reporting, and payment
requirements of subdivision 2, paragraph (b); or
new text end

new text begin (2) make the election under subdivision 3 as though it were the audited partnership.
new text end

new text begin (b) Each direct partner in a partnership making a report under paragraph (a) must, within
180 days of the report, comply with the filing, reporting, and payment requirements of
subdivision 2, paragraph (c).
new text end

new text begin (c) Notwithstanding the interim time requirements in this subdivision and subdivisions
2 and 3, all reports and payments required to be made by the tiered and indirect partners
under this section are required to be made within 90 days after the time for the filing and
furnishing of statements to tiered partners and their partners as established by the Internal
Revenue Service under section 6226 of the Internal Revenue Code.
new text end

new text begin Subd. 5. new text end

new text begin Effects of election by partnership or tiered partner and payment of amount
due.
new text end

new text begin (a) Unless the commissioner determines otherwise, the election under subdivision 3
is irrevocable.
new text end

new text begin (b) If an audited partnership or tiered partner properly reports and pays an amount
determined in subdivision 3, the amount must be treated as paid in lieu of taxes owed by
the partnership's direct partners on the same final federal adjustments. The direct partners
and indirect partners of the partnership who are not resident partners may not take any
deduction or credit for this amount or claim a refund of the amount in this state.
new text end

new text begin (c) Nothing in this subdivision precludes resident partners from claiming a credit against
taxes paid under section 290.06, on any amounts paid by the audited partnership or tiered
partners on the resident partner's behalf to another state or local tax jurisdiction.
new text end

new text begin Subd. 6. new text end

new text begin Failure of partnership or tiered partner to report or pay. new text end

new text begin Nothing in this
section prevents the commissioner from assessing direct partners or indirect partners for
taxes they owe in the event that, for any reason, a partnership or tiered partner fails to timely
make any report or payment required by this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 10.

Minnesota Statutes 2018, section 289A.42, is amended to read:


289A.42 CONSENT TO EXTEND STATUTE.

Subdivision 1.

Extension agreement.

If before the expiration of time prescribed in
sections 289A.38new text begin to 289A.382new text end and 289A.40 for the assessment of tax or the filing of a claim
for refund, both the commissioner and the taxpayer have consented in writing to the
assessment or filing of a claim for refund after that time, the tax may be assessed or the
claim for refund filed at any time before the expiration of the agreed-upon period. The
period may be extended by later agreements in writing before the expiration of the period
previously agreed upon. The taxpayer and the commissioner may also agree to extend the
period for collection of the tax.

Subd. 2.

Federal extensions.

When a taxpayer consents to an extension of time for the
assessment of federal withholding or income taxes, the period in which the commissioner
may recompute the tax is also extended, notwithstanding any period of limitations to the
contrary, as follows:

(1) for the periods provided in deleted text beginsectiondeleted text endnew text begin sectionsnew text end 289A.38, subdivisions 8 and 9new text begin, and
289A.382, subdivisions 2 and 3
new text end;

(2) for six months following the expiration of the extended federal period of limitations
when no change is made by the federal authority. If no change is made by the federal
authority, and, but for this subdivision, the commissioner's time period to adjust the tax has
expired, and if the commissioner has completed a field audit of the taxpayer, no additional
changes resulting in additional tax due or a refund may be made. For purposes of this
subdivision, "field audit" has the meaning given deleted text beginitdeleted text end in section 289A.38, subdivision 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 11.

Minnesota Statutes 2018, section 289A.60, subdivision 24, is amended to read:


Subd. 24.

Penalty for failure to notify of federal change.

If a person fails to report to
the commissioner a change or correction of the person's federal return in the manner and
time prescribed in deleted text beginsectiondeleted text endnew text begin sectionsnew text end 289A.38, subdivision 7new text begin, and 289A.382new text end, there must be
added to the tax an amount equal to ten percent of the amount of any underpayment of
Minnesota tax attributable to the federal change.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 12.

Minnesota Statutes 2018, section 290.31, subdivision 1, is amended to read:


Subdivision 1.

Partners, not partnership, subject to tax.

Except as provided under
deleted text begin sectiondeleted text endnew text begin sectionsnew text end 289A.35, paragraph (b),new text begin and 289A.382, subdivision 3,new text end a partnership as such
shall not be subject to the income tax imposed by this chapter, but is subject to the tax
imposed under section 290.0922. Persons carrying on business as partners shall be liable
for income tax only in their separate or individual capacities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 13.

Minnesota Statutes 2018, section 297F.17, subdivision 6, is amended to read:


Subd. 6.

Time limit for bad debt refund.

Claims for refund must be filed with the
commissioner during the one-year period beginning with the timely filing of the taxpayer's
federal income tax return containing the bad debt deduction that is being claimed. Claimants
under this subdivision are subject to the notice requirements of deleted text beginsectiondeleted text endnew text begin sectionsnew text end 289A.38,
subdivision 7
new text begin, and 289A.382new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 14.

Minnesota Statutes 2018, section 297G.16, subdivision 7, is amended to read:


Subd. 7.

Time limit for a bad debt deduction.

Claims for refund must be filed with
the commissioner within one year of the filing of the taxpayer's income tax return containing
the bad debt deduction that is being claimed. Claimants under this subdivision are subject
to the notice requirements of deleted text beginsection 289A.38, subdivision 7deleted text endnew text begin sections 289A.38 to 289A.382new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

Sec. 15.

Minnesota Statutes 2018, section 469.319, subdivision 4, is amended to read:


Subd. 4.

Repayment procedures.

(a) For the repayment of taxes imposed under chapter
290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an
amended return with the commissioner of revenue and pay any taxes required to be repaid
within 30 days after becoming subject to repayment under this section. The amount required
to be repaid is determined by calculating the tax for the period or periods for which repayment
is required without regard to the exemptions and credits allowed under section 469.315.

(b) For the repayment of taxes imposed under chapter 297B, a business must pay any
taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of
revenue, within 30 days after becoming subject to repayment under this section.

(c) For the repayment of property taxes, the county auditor shall prepare a tax statement
for the business, applying the applicable tax extension rates for each payable year and
provide a copy to the business and to the taxpayer of record. The business must pay the
taxes to the county treasurer within 30 days after receipt of the tax statement. The business
or the taxpayer of record may appeal the valuation and determination of the property tax to
the Tax Court within 30 days after receipt of the tax statement.

(d) The provisions of chapters 270C and 289A relating to the commissioner's authority
to audit, assess, and collect the tax and to hear appeals are applicable to the repayment
required under paragraphs (a) and (b). The commissioner may impose civil penalties as
provided in chapter 289A, and the additional tax and penalties are subject to interest at the
rate provided in section 270C.40. The additional tax shall bear interest from 30 days after
becoming subject to repayment under this section until the date the tax is paid. Any penalty
imposed pursuant to this section shall bear interest from the date provided in section 270C.40,
subdivision 3
, to the date of payment of the penalty.

(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add the
amount required to be repaid to the property taxes assessed against the property for payment
in the year following the year in which the auditor provided the statement under paragraph
(c).

(f) For determining the tax required to be repaid, a reduction of a state or local sales or
use tax is deemed to have been received on the date that the good or service was purchased
or first put to a taxable use. In the case of an income tax or franchise tax, including the credit
payable under section 469.318, a reduction of tax is deemed to have been received for the
two most recent tax years that have ended prior to the date that the business became subject
to repayment under this section. In the case of a property tax, a reduction of tax is deemed
to have been received for the taxes payable in the year that the business became subject to
repayment under this section and for the taxes payable in the prior year.

(g) The commissioner may assess the repayment of taxes under paragraph (d) any time
within two years after the business becomes subject to repayment under subdivision 1, or
within any period of limitations for the assessment of tax under deleted text beginsection 289A.38deleted text endnew text begin sections
289A.38 to 289A.382
new text end, whichever period is later. The county auditor may send the statement
under paragraph (c) any time within three years after the business becomes subject to
repayment under subdivision 1.

(h) A business is not entitled to any income tax or franchise tax benefits, including
refundable credits, for any part of the year in which the business becomes subject to
repayment under this section nor for any year thereafter. Property is not exempt from tax
under section 272.02, subdivision 64, for any taxes payable in the year following the year
in which the property became subject to repayment under this section nor for any year
thereafter. A business is not eligible for any sales tax benefits beginning with goods or
services purchased or first put to a taxable use on the day that the business becomes subject
to repayment under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, except that for partnerships that make an election under Code of
Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
and applies to the same tax periods to which the election relates.
new text end

ARTICLE 3

PROPERTY TAXES

Section 1.

Minnesota Statutes 2018, section 270.41, subdivision 3a, is amended to read:


Subd. 3a.

Report on disciplinary actions.

deleted text beginEach odd-numbered year,deleted text endnew text begin When issuing the
report required under section 214.07,
new text end the board must deleted text beginpublish a report detailingdeleted text endnew text begin includenew text end the
number and types of disciplinary actions recommended by the commissioner of revenue
under section 273.0645, subdivision 2, and the disposition of those recommendations by
the board. The report must be presented to the house of representatives and senate committees
with jurisdiction over property taxes deleted text beginby February 1 of each odd-numbered yeardeleted text endnew text begin in addition
to the recipients required under section 214.07
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports issued in 2020 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2018, section 272.029, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For the purposes of this section:

(1) "wind energy conversion system" has the meaning given in section 216C.06,
subdivision 19, and also includes a substation that is used and owned by one or more wind
energy conversion facilities;

(2) "large scale wind energy conversion system" means a wind energy conversion system
of more than 12 megawatts, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b);

(3) "medium scale wind energy conversion system" means a wind energy conversion
system of over two and not more than 12 megawatts, as measured by the nameplate capacity
of the system or as combined with other systems as provided in paragraph (b); and

(4) "small scale wind energy conversion system" means a wind energy conversion system
of two megawatts and under, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b).

(b) For systems installed and contracted for after January 1, 2002, the total size of a
wind energy conversion system under this subdivision shall be determined according to this
paragraph. Unless the systems are interconnected with different distribution systems, the
nameplate capacity of one wind energy conversion system shall be combined with the
nameplate capacity of any other wind energy conversion system that is:

(1) located within five miles of the wind energy conversion system;

(2) constructed within the same 12-month period as the wind energy conversion system;
and

(3) under common ownership.

In the case of a dispute, the commissioner of commerce shall determine the total size of the
system, and shall draw all reasonable inferences in favor of combining the systems.

new text begin For the purposes of making a determination under this paragraph, the original construction
date of an existing wind energy conversion system is not changed if the system is replaced,
repaired, or otherwise maintained or altered.
new text end

(c) In making a determination under paragraph (b), the commissioner of commerce may
determine that two wind energy conversion systems are under common ownership when
the underlying ownership structure contains similar persons or entities, even if the ownership
shares differ between the two systems. Wind energy conversion systems are not under
common ownership solely because the same person or entity provided equity financing for
the systems.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2018, section 272.0295, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For the purposes of this section, the term "solar energy
generating system" means a set of devices whose primary purpose is to produce electricity
by means of any combination of collecting, transferring, or converting solar generated
energy.

(b) The total size of a solar energy generating system under this subdivision shall be
determined according to this paragraph. Unless the systems are interconnected with different
distribution systems, the nameplate capacity of a solar energy generating system shall be
combined with the nameplate capacity of any other solar energy generating system that:

(1) is constructed within the same 12-month period as the solar energy generating system;
and

(2) exhibits characteristics of being a single development, including but not limited to
ownership structure, an umbrella sales arrangement, shared interconnection, revenue-sharing
arrangements, and common debt or equity financing.

In the case of a dispute, the commissioner of commerce shall determine the total size of the
system and shall draw all reasonable inferences in favor of combining the systems.

new text begin For the purposes of making a determination under this paragraph, the original construction
date of an existing solar energy conversion system is not changed if the system is replaced,
repaired, or otherwise maintained or altered.
new text end

(c) In making a determination under paragraph (b), the commissioner of commerce may
determine that two solar energy generating systems are under common ownership when the
underlying ownership structure contains similar persons or entities, even if the ownership
shares differ between the two systems. Solar energy generating systems are not under
common ownership solely because the same person or entity provided equity financing for
the systems.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2018, section 272.0295, subdivision 5, is amended to read:


Subd. 5.

Notification of tax.

(a) On or before February 28, the commissioner of revenue
shall notify the owner of each solar energy generating system of the tax due to each county
for the current year and shall certify to the county auditor of each county in which the system
is located the tax due from each owner for the current year.

(b) If the commissioner of revenue determines that the amount of production tax has
been erroneously calculated, the commissioner may correct the error. The commissioner
must notify the owner of the solar energy generating system of the correction and the amount
of tax due to each county and must certify the correction to the county auditor of each county
in which the system is located on or before April 1 of the current year.new text begin The commissioner
may correct errors that are clerical in nature until December 31.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2018, section 273.063, is amended to read:


273.063 APPLICATION; LIMITATIONS.

The provisions of sections 272.161, 273.061, 273.062, 273.063, 273.072, 273.08, 273.10,
274.01, and 375.192 shall apply to all counties except Ramsey County. The following
limitations shall apply as to the extent of the county assessors jurisdiction:

In counties having a city of the first class, the powers and duties of the county assessor
within such city shall be performed by the duly appointed city assessor. In all other cities
having a population of 30,000 persons or more, according to the last preceding federal
census, except in counties having a county assessor on January 1, 1967, the powers and
duties of the county assessor within such cities shall be performed by the duly appointed
city assessor, provided that the county assessor shall retain the supervisory duties contained
in section 273.061, subdivision 8.new text begin For purposes of this section, "powers and duties" means
the powers and duties identified in section 273.061, subdivision 8, clauses (5) to (16).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2019 Supplement, section 273.0755, is amended to read:


273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.

(a) Beginning with the four-year period starting on July 1, deleted text begin2000deleted text endnew text begin 2020new text end, every person
licensed by the state Board of Assessors at the Accredited Minnesota Assessor level or
higher, shall successfully complete deleted text begina weeklong Minnesota laws coursedeleted text endnew text begin 30 hours of
educational coursework on Minnesota laws, assessment administration, and administrative
procedures
new text end sponsored by the Department of Revenue deleted text beginat least oncedeleted text end in every four-year period.
deleted text begin An assessor need not attend the course if they successfully pass the test for the course.
deleted text end

(b) The commissioner of revenue may require that each county, and each city for which
the city assessor performs the duties of county assessor, have (1) a person on the assessor's
staff who is certified by the Department of Revenue in sales ratio calculations, (2) an officer
or employee who is certified by the Department of Revenue in tax calculations, and (3) an
officer or employee who is certified by the Department of Revenue in the proper preparation
of information reported to the commissioner under section 270C.85, subdivision 2, clause
(4). Certifications under this paragraph expire after four years.

(c) Beginning with the four-year educational licensing period starting on July 1, 2004,
every Minnesota assessor licensed by the State Board of Assessors must attend and participate
in a seminar that focuses on ethics, professional conduct and the need for standardized
assessment practices developed and presented by the commissioner of revenue. This
requirement must be met at least once in every subsequent four-year period. This requirement
applies to all assessors licensed for one year or more in the four-year period.

(d) When the commissioner of revenue determines that an individual or board that
performs functions related to property tax administration has performed those functions in
a manner that is not uniform or equitable, the commissioner may require that the individual
or members of the board complete supplemental training. The commissioner may not require
that an individual complete more than 32 hours of supplemental training pursuant to this
paragraph. If the individual is required to complete supplemental training due to that
individual's membership on a local or county board of appeal and equalization, the
commissioner may not require that the individual complete more than two hours of
supplemental training.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the four-year licensing period starting
on July 1, 2020, and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2019 Supplement, section 273.124, subdivision 14, is amended
to read:


Subd. 14.

Agricultural homesteads; special provisions.

(a) Real estate of less than ten
acres that is the homestead of its owner must be classified as class 2a under section 273.13,
subdivision 23
, paragraph (a), if:

(1) the parcel on which the house is located is contiguous on at least two sides to (i)
agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
Service, or (iii) land administered by the Department of Natural Resources on which in lieu
taxes are paid under sections 477A.11 to 477A.14new text begin or section 477A.17new text end;

(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
acres;

(3) the noncontiguous land is located not farther than four townships or cities, or a
combination of townships or cities from the homestead; and

(4) the agricultural use value of the noncontiguous land and farm buildings is equal to
at least 50 percent of the market value of the house, garage, and one acre of land.

Homesteads initially classified as class 2a under the provisions of this paragraph shall
remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
properties, as long as the homestead remains under the same ownership, the owner owns a
noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
value qualifies under clause (4). Homestead classification under this paragraph is limited
to property that qualified under this paragraph for the 1998 assessment.

(b)(i) Agricultural property shall be classified as the owner's homestead, to the same
extent as other agricultural homestead property, if all of the following criteria are met:

(1) the agricultural property consists of at least 40 acres including undivided government
lots and correctional 40's;

(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner
or of the owner's spouse, is actively farming the agricultural property, either on the person's
own behalf as an individual or on behalf of a partnership operating a family farm, family
farm corporation, joint family farm venture, or limited liability company of which the person
is a partner, shareholder, or member;

(3) both the owner of the agricultural property and the person who is actively farming
the agricultural property under clause (2), are Minnesota residents;

(4) neither the owner nor the spouse of the owner claims another agricultural homestead
in Minnesota; and

(5) neither the owner nor the person actively farming the agricultural property lives
farther than four townships or cities, or a combination of four townships or cities, from the
agricultural property, except that if the owner or the owner's spouse is required to live in
employer-provided housing, the owner or owner's spouse, whichever is actively farming
the agricultural property, may live more than four townships or cities, or combination of
four townships or cities from the agricultural property.

The relationship under this paragraph may be either by blood or marriage.

(ii) Property containing the residence of an owner who owns qualified property under
clause (i) shall be classified as part of the owner's agricultural homestead, if that property
is also used for noncommercial storage or drying of agricultural crops.

(iii) As used in this paragraph, "agricultural property" means class 2a property and any
class 2b property that is contiguous to and under the same ownership as the class 2a property.

(c) Noncontiguous land shall be included as part of a homestead under section 273.13,
subdivision 23
, paragraph (a), only if the homestead is classified as class 2a and the detached
land is located in the same township or city, or not farther than four townships or cities or
combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
and, if the homestead is located in another county, the taxpayer must also notify the assessor
of the other county.

(d) Agricultural land used for purposes of a homestead and actively farmed by a person
holding a vested remainder interest in it must be classified as a homestead under section
273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other
dwellings on the land used for purposes of a homestead by persons holding vested remainder
interests who are actively engaged in farming the property, and up to one acre of the land
surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
must also be assessed class 2a.

(e) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the April 1997 floods;

(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
Wilkin;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1997 assessment year and continue to be used for
agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.

(f) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by a March 29, 1998, tornado;

(2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur,
Nicollet, Nobles, or Rice;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1998 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to a March 29,
1998, tornado, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
owner must notify the assessor by December 1, 1998. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.

(g) Agricultural property of a family farm corporation, joint family farm venture, family
farm limited liability company, or partnership operating a family farm as described under
subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
property, if all of the following criteria are met:

(1) the property consists of at least 40 acres including undivided government lots and
correctional 40's;

(2) a shareholder, member, or partner of that entity is actively farming the agricultural
property;

(3) that shareholder, member, or partner who is actively farming the agricultural property
is a Minnesota resident;

(4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
member, or partner claims another agricultural homestead in Minnesota; and

(5) that shareholder, member, or partner does not live farther than four townships or
cities, or a combination of four townships or cities, from the agricultural property.

Homestead treatment applies under this paragraph even if:

(i) the shareholder, member, or partner of that entity is actively farming the agricultural
property on the shareholder's, member's, or partner's own behalf; or

(ii) the family farm is operated by a family farm corporation, joint family farm venture,
partnership, or limited liability company other than the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land, provided that:

(A) the shareholder, member, or partner of the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land who is actively
farming the land is a shareholder, member, or partner of the family farm corporation, joint
family farm venture, partnership, or limited liability company that is operating the farm;
and

(B) more than half of the shareholders, members, or partners of each family farm
corporation, joint family farm venture, partnership, or limited liability company are persons
or spouses of persons who are a qualifying relative under section 273.124, subdivision 1,
paragraphs (c) and (d).

Homestead treatment applies under this paragraph for property leased to a family farm
corporation, joint farm venture, limited liability company, or partnership operating a family
farm if legal title to the property is in the name of an individual who is a member, shareholder,
or partner in the entity.

(h) To be eligible for the special agricultural homestead under this subdivision, an initial
full application must be submitted to the county assessor where the property is located.
Owners and the persons who are actively farming the property shall be required to complete
only a one-page abbreviated version of the application in each subsequent year provided
that none of the following items have changed since the initial application:

(1) the day-to-day operation, administration, and financial risks remain the same;

(2) the owners and the persons actively farming the property continue to live within the
four townships or city criteria and are Minnesota residents;

(3) the same operator of the agricultural property is listed with the Farm Service Agency;

(4) a Schedule F or equivalent income tax form was filed for the most recent year;

(5) the property's acreage is unchanged; and

(6) none of the property's acres have been enrolled in a federal or state farm program
since the initial application.

The owners and any persons who are actively farming the property must include the
appropriate Social Security numbers, and sign and date the application. If any of the specified
information has changed since the full application was filed, the owner must notify the
assessor, and must complete a new application to determine if the property continues to
qualify for the special agricultural homestead. The commissioner of revenue shall prepare
a standard reapplication form for use by the assessors.

(i) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by the August 2007 floods;

(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
Wabasha, or Winona;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2007 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the August 2007
floods, and the owner furnishes the assessor any information deemed necessary by the
assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
owner must notify the assessor by December 1, 2008. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.

(j) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the March 2009 floods;

(2) the property is located in the county of Marshall;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2008 assessment year and continue to be used for
agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2019 Supplement, section 273.18, is amended to read:


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

(a) In every sixth year after the year 2010, the county auditor shall enter the description
of each tract of real property exempt by law from taxation, with the name of the owner, and
the assessor shall value and assess the same in the same manner that other real property is
valued and assessed, and shall designate in each case the purpose for which the property is
used.

(b) The county auditor shall include in the exempt property information that the
commissioner may require under section 270C.85, subdivision 2, clause (4), the total number
of acres of all natural resources lands for which in lieu payments are made under sections
477A.11 to 477A.14new text begin and 477A.17new text end. The assessor shall estimate its market value, provided
that if the assessor is not able to estimate the market value of the land on a per parcel basis,
the assessor shall furnish the commissioner of revenue with an estimate of the average value
per acre of this land within the county.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2018, section 287.04, is amended to read:


287.04 EXEMPTIONS.

The tax imposed by section 287.035 does not apply to:

deleted text begin (a)deleted text endnew text begin (1)new text end a decree of marriage dissolution or an instrument made pursuant to itdeleted text begin.deleted text endnew text begin;
new text end

deleted text begin (b)deleted text endnew text begin (2)new text end a mortgage given to correct a misdescription of the mortgaged propertydeleted text begin.deleted text endnew text begin;
new text end

deleted text begin (c)deleted text endnew text begin (3)new text end a mortgage or other instrument that adds additional security for the same debt
for which mortgage registry tax has been paiddeleted text begin.deleted text endnew text begin;
new text end

deleted text begin (d)deleted text endnew text begin (4)new text end a contract for the conveyance of any interest in real property, including a contract
for deeddeleted text begin.deleted text endnew text begin;
new text end

deleted text begin (e)deleted text endnew text begin (5)new text end a mortgage secured by real property subject to the minerals production tax of
sections 298.24 to 298.28deleted text begin.deleted text endnew text begin;
new text end

deleted text begin (f) The principal amount ofdeleted text endnew text begin (6)new text end a mortgage loan made under a low and moderate income
new text begin housing program, new text endor other affordable housing program, ifnew text begin: (i)new text end the mortgagee is a federal,
state, or local government agencydeleted text begin.deleted text endnew text begin; or (ii) the assignee is a federal, state, or local government
agency;
new text end

deleted text begin (g)deleted text endnew text begin (7)new text end mortgages granted by fraternal benefit societies subject to section 64B.24deleted text begin.deleted text endnew text begin;
new text end

deleted text begin (h)deleted text endnew text begin (8)new text end a mortgage amendment or extension, as defined in section 287.01deleted text begin.deleted text endnew text begin;
new text end

deleted text begin (i)deleted text endnew text begin (9)new text end an agricultural mortgage if the proceeds of the loan secured by the mortgage are
used to acquire or improve real property classified under section 273.13, subdivision 23,
paragraph (a) or (b)deleted text begin.deleted text endnew text begin; and
new text end

deleted text begin (j)deleted text endnew text begin (10)new text end a mortgage on an armory building as set forth in section 193.147.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for mortgages recorded after July 31,
2020.
new text end

Sec. 10.

Minnesota Statutes 2018, section 477A.10, is amended to read:


477A.10 NATURAL RESOURCES LAND PAYMENTS IN LIEU; PURPOSE.

The purposes of sections 477A.11 to 477A.14 new text beginand 477A.17 new text endare:

(1) to compensate local units of government for the loss of tax base from state ownership
of land and the need to provide services for state land;

(2) to address the disproportionate impact of state land ownership on local units of
government with a large proportion of state land; and

(3) to address the need to manage state lands held in trust for the local taxing districts.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 4

FIRE AND POLICE STATE AIDS

Section 1.

Minnesota Statutes 2019 Supplement, section 6.495, subdivision 3, is amended
to read:


Subd. 3.

Report to commissioner of revenue.

new text begin(a) On or before September 15, new text endthe state
auditor deleted text beginshalldeleted text endnew text begin mustnew text end file with the commissioner of revenue a financial compliance report
certifying for each relief association:

(1) the completion of the annual financial report required under section 424A.014 and
the auditing or certification of those financial reports under subdivision 1; and

(2) the receipt of any actuarial valuations required under section 424A.093 or Laws
2013, chapter 111, article 5, sections 31 to 42.

new text begin (b) The state auditor must file with the commissioner of revenue reports as described in
paragraph (a) on or before November 1, March 1, and June 1 certifying relief associations
that have satisfied the criteria of paragraph (a) since the previously filed financial compliance
report.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2019 Supplement, section 297I.26, subdivision 2, is amended
to read:


Subd. 2.

Penalties.

(a) A company that fails to file the report on or before the due date
in subdivision 1 is liable for a penalty equal to $25 for each seven days, or fraction thereof,
that the report is delinquent, but not to exceed $200.

deleted text begin (b) Any person whose duty it is to file the report and who fails or refuses to file within
30 days after the postmark of the notice in subdivision 1 must be fined an amount of no
more than $1,000.
deleted text end

deleted text begin (c) Anydeleted text endnew text begin (b) Anew text end company that knowingly makes and files an inaccurate or false report deleted text beginis
liable for a fine in an amount not less than $25 nor more than $1,000, as determined by the
commissioner
deleted text endnew text begin may be prosecuted under section 609.41new text end, and the commissioner of commerce
may revoke the company's certificate of authority.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports required to be filed after
December 31, 2020.
new text end

Sec. 3.

Minnesota Statutes 2019 Supplement, section 477B.01, is amended by adding a
subdivision to read:


new text begin Subd. 1a. new text end

new text begin Apportionment agreement. new text end

new text begin "Apportionment agreement" means an agreement
between two or more fire departments that provide contracted fire protection service to the
same municipality and establishes the percentage of the population and the percentage of
the estimated market value within the municipality serviced by each fire department.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2019 Supplement, section 477B.01, subdivision 5, is amended
to read:


Subd. 5.

Fire department.

new text begin(a) new text end"Fire department" deleted text beginincludesdeleted text endnew text begin means:
new text end

new text begin (1)new text end a municipal fire department deleted text beginanddeleted text endnew text begin;
new text end

new text begin (2)new text end an independent nonprofit firefighting corporationdeleted text begin.deleted text endnew text begin;
new text end

new text begin (3) a fire department established as or operated by a joint powers entity; or
new text end

new text begin (4) a fire protection special taxing district.
new text end

new text begin (b) This subdivision only applies to this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2019 Supplement, section 477B.01, is amended by adding a
subdivision to read:


new text begin Subd. 6a. new text end

new text begin Fire protection special taxing district. new text end

new text begin "Fire protection special taxing district"
means a special taxing district authorized by law or statute that provides fire protection
services within the district and may exercise all the powers of the local governments that
relate to fire protection within the district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2019 Supplement, section 477B.01, is amended by adding a
subdivision to read:


new text begin Subd. 7a. new text end

new text begin Joint powers entity. new text end

new text begin "Joint powers entity" means a joint powers entity under
section 471.59.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2019 Supplement, section 477B.01, subdivision 10, is amended
to read:


Subd. 10.

Municipality.

(a) "Municipality" means:

(1) a home rule charter or statutory city;

(2) an organized town;

(3) deleted text begina park district subject to chapter 398deleted text endnew text begin a joint powers entitynew text end;

(4) deleted text beginthe University of Minnesotadeleted text endnew text begin a fire protection special taxing districtnew text end; deleted text beginanddeleted text endnew text begin or
new text end

(5) an American Indian tribal government entity located within a federally recognized
American Indian reservation.

(b) This subdivision only applies to new text beginthis new text endchapter deleted text begin477Bdeleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2019 Supplement, section 477B.01, subdivision 11, is amended
to read:


Subd. 11.

Secretary.

new text begin(a) new text end"Secretary" meansnew text begin:
new text end

new text begin (1)new text end the secretary of an independent nonprofit firefighting corporation that has a subsidiary
incorporated firefighters' relief association or whose firefighters participate in the voluntary
statewide volunteer firefighter retirement plandeleted text begin.deleted text endnew text begin; or
new text end

new text begin (2) the secretary of a joint powers entity or fire protection special taxing district or, if
there is no such person, the person primarily responsible for managing the finances of a
joint powers entity or fire protection special taxing district.
new text end

new text begin (b) This subdivision only applies to this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2019 Supplement, section 477B.02, subdivision 2, is amended
to read:


Subd. 2.

Establishment of fire department.

(a) An independent nonprofit firefighting
corporation must be created under the nonprofit corporation act of this state operating for
the exclusive purpose of firefighting, or the governing body of a municipality must officially
establish a fire department.

(b) The fire department must have provided firefighting services for at least one calendar
yearnew text begin, and must have a current fire department identification number issued by the state fire
marshal
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2019 Supplement, section 477B.02, subdivision 3, is amended
to read:


Subd. 3.

deleted text beginPersonnel anddeleted text end Benefits requirements.

deleted text begin (a) A fire department must have a
minimum of ten paid or volunteer firefighters, including a fire chief and assistant fire chief.
deleted text end

deleted text begin (b) The fire department must have regular scheduled meetings and frequent drills that
include instructions in firefighting tactics and in the use, care, and operation of all fire
apparatus and equipment.
deleted text end

deleted text begin (c)deleted text endnew text begin (a)new text end The fire department must have a separate subsidiary incorporated firefighters'
relief association that provides retirement benefits or must participate in the voluntary
statewide volunteer firefighter retirement plan; or if the municipality solely employs full-time
firefighters as defined in section 299N.03, subdivision 5, retirement coverage must be
provided by the public employees police and fire retirement plan.new text begin For purposes of retirement
benefits, a fire department may be associated with only one volunteer firefighters' relief
association or one account in the voluntary statewide volunteer firefighter retirement plan
at one time.
new text end

deleted text begin (d)deleted text endnew text begin (b)new text end Notwithstanding paragraph deleted text begin(c)deleted text endnew text begin (a)new text end, a municipality without a relief association as
described under section 424A.08, paragraph (a), may still qualify to receive fire state aid if
all other requirements of this section are met.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2019 Supplement, section 477B.02, is amended by adding a
subdivision to read:


new text begin Subd. 4a. new text end

new text begin Public safety answering point requirement. new text end

new text begin The fire department must be
dispatched by a public safety answering point as defined in section 403.02, subdivision 19.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2019 Supplement, section 477B.02, subdivision 5, is amended
to read:


Subd. 5.

Fire service contract or agreement; apportionment agreement filing
requirement.

(a) Every municipality or independent nonprofit firefighting corporation must
file a copy of any duly executed and valid fire service contract deleted text beginor agreementdeleted text end with the
commissioner.new text begin A written notification of contract termination must be filed with the
commissioner when a fire service contract is terminated.
new text end

(b) If more than one fire department provides service to a municipality, the fire
departments furnishing service must deleted text beginenter into an agreement apportioning among themselves
the percentage of the population and the percentage of the estimated market value of each
shared service fire department service area. The agreement must be in writing and must be
filed
deleted text endnew text begin file an apportionment agreementnew text end with the commissioner.

new text begin (c) When a municipality is a joint powers entity, it must file its joint powers agreement
with the commissioner. If the joint powers agreement does not include sufficient information
defining the fire department service area of the joint powers entity for the purposes of
calculating fire state aid, the secretary must file a written statement with the commissioner
defining the fire department service area.
new text end

new text begin (d) When a municipality is a fire protection special taxing district, it must file its
resolution establishing the fire protection special taxing district, and any agreements required
for the establishment of the fire protection special taxing district, with the commissioner.
If the resolution or agreement does not include sufficient information defining the fire
department service area of the fire protection special taxing district, the secretary must file
a written statement with the commissioner defining the fire department service area.
new text end

new text begin (e) The commissioner shall prescribe the format, manner, and time of filing of a written
notification of contract termination, an apportionment agreement, a joint powers agreement,
a resolution, or a written statement under paragraphs (a) to (d).
new text end

new text begin (f) A document filed with the commissioner under this subdivision must be refiled any
time it is updated. An apportionment agreement must be refiled only when a change in the
averaged sum of the percentage of population and percentage of estimated market value
serviced by a fire department subject to the apportionment agreement is at least one percent.
The percentage amount must be rounded to the nearest whole percentage.
new text end

new text begin (g) Upon the request of the commissioner, the county auditor must provide information
that the commissioner requires to accurately apportion the estimated market value of a fire
department service area for a fire department providing service to an unorganized territory
located in the county.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2019 Supplement, section 477B.02, subdivision 8, is amended
to read:


Subd. 8.

PERA certification to commissioner.

On or before February 1 each year, deleted text beginif
retirement coverage for a fire department is provided by the voluntary statewide volunteer
firefighter retirement plan,
deleted text end the executive director of the Public Employees Retirement
Association must certify deleted text beginthe existence of retirement coveragedeleted text endnew text begin to the commissioner the fire
departments that transferred retirement coverage to, or terminated participation in, the
voluntary statewide volunteer firefighter retirement plan since the previous certification
under this paragraph
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2019 Supplement, section 477B.02, subdivision 9, is amended
to read:


Subd. 9.

Fire department certification to commissioner.

On or before March 15 of
each year, the municipal clerk or the secretarydeleted text begin, and the fire chief,deleted text end must deleted text beginjointlydeleted text end certify to the
commissioner deleted text beginthat the fire department exists and meets the qualification requirements of
this section
deleted text endnew text begin the fire department service area as of December 31 of the previous year, and
that the fire department meets the qualification requirements of this section
new text end. new text beginThe fire
department must provide the commissioner with documentation that the commissioner
deems necessary for determining eligibility for fire state aid or for calculating and
apportioning fire state aid under section 477B.03.
new text endThe certification must be on a form
prescribed by the commissioner and must include all other information that the commissioner
requires.new text begin The municipal clerk or the secretary must send a copy of the certification filed
under this subdivision to the fire chief within five business days of the date the certification
was filed with the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2019 Supplement, section 477B.02, subdivision 10, is amended
to read:


Subd. 10.

Penalty for failure to filenew text begin or correctnew text end certification.

(a) If the certification
under subdivision 9 is not filed with the commissioner on or before March deleted text begin15deleted text endnew text begin 1new text end, the
commissioner must notify the municipal clerk or the secretary that a penalty deleted text beginequal to a
portion or all of the current year aid will apply if the certification is not received within ten
days of the postmark date of the notification
deleted text endnew text begin will be deducted from fire state aid certified
for the current year if the certification is not filed on or before March 15
new text end.

new text begin (b) If the commissioner rejects the certification by the municipal clerk or secretary under
subdivision 9 for inaccurate or incomplete information, the municipal clerk or the secretary
must file a corrective certification after taking corrective action as identified by the
commissioner in the notice of rejection. The corrective certification must be filed within
30 days of the date on the notice of rejection.
new text end

deleted text begin (b)deleted text endnew text begin (c) A penalty applies to (1) a certification under subdivision 9 filed after March 15
and (2) a corrective certification under paragraph (b) filed after March 15 that is also filed
more than 30 days after the date on the notice of rejection.
new text end The penalty deleted text beginfor failure to file
the certification under subdivision 9
deleted text end is equal to the amount of fire state aid determined for
the municipality or the independent nonprofit firefighting corporation for the current year,
multiplied by deleted text beginfivedeleted text endnew text begin tennew text end percent for each week or fraction of a week that the certificationnew text begin or
corrective certification
new text end is deleted text beginlatedeleted text endnew text begin filed after March 15new text end. deleted text beginThe penalty must be computed beginning
ten days after the postmark date of the commissioner's notification.
deleted text end Aid amounts forfeited
as a result of the penalty revert to the state general fund. Failure to receive the certification
form is not a defense for a failure to file.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 16.

Minnesota Statutes 2019 Supplement, section 477B.03, subdivision 3, is amended
to read:


Subd. 3.

Population and estimated market value.

(a) deleted text beginOfficial statewide federal census
figures
deleted text endnew text begin Population estimates made by the state demographer pursuant to section 4A.02,
paragraph (d),
new text end must be used in calculations requiring the use of population figures under
this chapter. deleted text beginIncreases or decreases in population disclosed by reason of any special census
must not be taken into consideration.
deleted text end

(b) The latest available estimated market value property figures must be used in
calculations requiring the use of estimated market value property figures under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 17.

Minnesota Statutes 2019 Supplement, section 477B.03, subdivision 4, is amended
to read:


Subd. 4.

Initial fire state aid allocation amount.

(a) The initial fire state aid allocation
amount is the amount available for apportionment as fire state aid under subdivision 2,
without the inclusion of any additional funding amount to support a minimum fire state aid
amount under section 423A.02, subdivision 3. The initial fire state aid allocation amount
is allocated one-half in proportion to the population for each fire department service area
and one-half in proportion to the estimated market value of each fire department service
area, including (1) the estimated market value of tax-exempt property, and (2) the estimated
market value of natural resources lands receiving in lieu payments under sections 477A.11
to 477A.14 and 477A.17. The estimated market value of minerals is excluded.

(b) In the case of a municipality or independent nonprofit firefighting corporation
furnishing fire protection to other municipalities as evidenced by valid fire service contractsnew text begin,
joint powers agreements, resolutions, and other supporting documents
new text end filed with the
commissioner under section 477B.02, subdivision 5, the distribution must be adjusted
proportionately to take into consideration the crossover fire protection service. Necessary
adjustments must be made to subsequent apportionments.

(c) In the case of municipalities or independent nonprofit firefighting corporations
qualifying for aid, the commissioner must calculate the state aid for the municipality or
independent nonprofit firefighting corporation on the basis of the population and the estimated
market value of the area furnished fire protection service by the fire department as evidenced
by new text beginvalid new text endfire service deleted text beginagreementsdeleted text endnew text begin contracts, joint powers agreements, resolutions, and other
supporting documents
new text end filed with the commissioner under section 477B.02, subdivision 5.

(d) In the case of more than one fire department furnishing contracted fire service to a
municipality, the population and estimated market value in the apportionment agreement
filed with the commissioner under section 477B.02, subdivision 5, must be used in calculating
the state aid.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 18.

Minnesota Statutes 2019 Supplement, section 477B.03, subdivision 7, is amended
to read:


Subd. 7.

Appeal.

A municipality, an independent nonprofit firefighting corporation, a
fire relief association, or the voluntary statewide volunteer firefighter retirement plan may
object to the amount of fire state aid apportioned to it by filing a written request with the
commissioner to review and adjust the apportionment of funds within the state. new text beginThe objection
of a municipality, an independent nonprofit firefighting corporation, a fire relief association,
or the voluntary statewide volunteer firefighter retirement plan must be filed with the
commissioner within 60 days of the date the amount of apportioned fire state aid is paid.
new text end The decision of the commissioner is subject to appeal, review, and adjustment by the district
court in the county in which the applicable municipality or independent nonprofit firefighting
corporation is located or by the Ramsey County District Court with respect to the voluntary
statewide volunteer firefighter retirement plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 19.

Minnesota Statutes 2019 Supplement, section 477B.04, subdivision 1, is amended
to read:


Subdivision 1.

Payments.

(a) The commissioner must make payments to the Public
Employees Retirement Association for deposit in the voluntary statewide volunteer firefighter
retirement fund on behalf of a municipality or independent nonprofit firefighting corporation
that is a member of the voluntary statewide volunteer firefighter retirement plan under
chapter 353Gdeleted text begin, or directly to a municipality or county designated by an independent nonprofit
firefighting corporation
deleted text end.new text begin The commissioner must directly pay all other municipalities
qualifying for fire state aid, except as provided in paragraph (d).
new text end The payment is equal to
the amount of fire state aid apportioned to the applicable fire state aid recipient under section
477B.03.

(b) Fire state aid is payable on October 1 annually. The amount of state aid due and not
paid by October 1 accrues interest payable to the recipient at the rate of one percent for each
month or part of a month that the amount remains unpaid after October 1.

(c) new text beginIn the event of noncompliance with sections 424A.014 and 477B.02, subdivision 7,
the amount of fire state aid apportioned to a municipality or independent nonprofit firefighting
corporation under section 477B.03 must be withheld from payment to the Public Employees
Retirement Association or the municipality. The commissioner of revenue must issue a
withheld payment within ten business days of receipt of a financial compliance report under
section 6.495, subdivision 3, certifying that the municipality or independent nonprofit
firefighting corporation has fulfilled the requirements of sections 424A.014 and 477B.02,
subdivision 7.
new text endThe interest under paragraph (b) does not apply deleted text beginwhendeleted text endnew text begin to anew text end payment deleted text beginhas not
been made by October 1 due to noncompliance with sections 424A.014 and 477B.02,
subdivision 7
deleted text endnew text begin withheld under this paragraphnew text end.

new text begin (d) A joint powers entity must designate the city or town to be paid fire state aid on its
behalf in the first year the joint powers entity qualifies for fire state aid. An independent
nonprofit firefighting corporation must designate the city or town within its fire department
service area to be paid fire state aid on its behalf in the first year the independent nonprofit
firefighting corporation qualifies for fire state aid. If there is no city or town within the fire
department service area of an independent nonprofit firefighting corporation, fire state aid
must be paid to the county where the independent nonprofit firefighting corporation is
located. A local government payment designation under this paragraph must be in writing
in the form and manner and at the time prescribed by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 20.

Minnesota Statutes 2019 Supplement, section 477B.04, is amended by adding a
subdivision to read:


new text begin Subd. 4. new text end

new text begin Aid amount corrections. new text end

new text begin (a) An adjustment needed to correct a fire state aid
overpayment or underpayment due to a clerical error must be made to subsequent fire state
aid payments as provided in paragraphs (b) and (c). The authority to correct an aid payment
under this subdivision is limited to three years after the payment was issued.
new text end

new text begin (b) If the adjustment equals more than ten percent of the most recently paid aid amount,
the commissioner must reduce the aid a municipality or independent nonprofit firefighting
corporation is to receive by the amount overpaid over a period of no more than three years.
If the adjustment equals or is less than ten percent of the most recently paid aid amount, the
commissioner must reduce the next aid payment occurring in 30 days or more by the amount
overpaid.
new text end

new text begin (c) In the event of an underpayment, the commissioner must distribute the amount of
underpaid funds to the municipality or independent nonprofit firefighting corporation over
a period of no more than three years. An additional distribution to a municipality or
independent nonprofit firefighting corporation must be paid from the general fund and must
not diminish the payments made to other municipalities or independent nonprofit firefighting
corporations under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 21.

Minnesota Statutes 2019 Supplement, section 477C.02, subdivision 4, is amended
to read:


Subd. 4.

Penalty for failure to file new text beginor correct new text endcertification.

(a) If a certification under
subdivision 1 or 2 is not filed with the commissioner on or before March deleted text begin15deleted text endnew text begin 1new text end, the
commissioner must notify the municipal clerk, municipal clerk-treasurer, or county auditor
that a penalty deleted text beginequal to a portion or all of its current year aid will apply if the certification
is not received within ten days
deleted text endnew text begin will be deducted from police state aid certified for the current
year if the certification is not filed on or before March 15
new text end.

new text begin (b) If the commissioner rejects the certification under subdivision 1 or 2 for inaccurate
or incomplete information, the municipal clerk, municipal clerk-treasurer, or county auditor
must file a corrective certification after taking corrective action as identified by the
commissioner in the notice of rejection. The corrective certification must be filed within
30 days of the date on the notice of rejection.
new text end

deleted text begin (b)deleted text endnew text begin (c) A penalty applies to (1) a certification under subdivisions 1 and 2 filed after
March 15 and (2) a corrective certification under paragraph (b) filed after March 15 that is
also filed more than 30 days after the date on the notice of rejection.
new text end The penalty deleted text beginfor failure
to file the certification under subdivision 1 or 2
deleted text end is equal to the amount of police state aid
determined for the municipality for the current year, multiplied by deleted text beginfivedeleted text endnew text begin tennew text end percent for each
week or fraction of a week that the certification new text beginor corrective certification new text endis deleted text beginlatedeleted text endnew text begin filed after
March 15
new text end. deleted text beginThe penalty must be computed beginning ten days after the postmark date of the
commissioner's notification as required under this subdivision.
deleted text end All aid amounts forfeited
as a result of the penalty revert to the state general fund. Failure to receive the certification
form may not be used as a defense for a failure to file.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 22.

Minnesota Statutes 2019 Supplement, section 477C.03, subdivision 2, is amended
to read:


Subd. 2.

Apportionment of police state aid.

(a) The total amount available for
apportionment as police state aid is equal to 104 percent of the amount of premium taxes
paid to the state on the premiums reported to the commissioner by companies or insurance
companies on the Minnesota Aid to Police Premium Report. The total amount for
apportionment for the police state aid program must not be less than two percent of the
amount of premiums reported to the commissioner by companies or insurance companies
on the Minnesota Aid to Police Premium Report.

(b) The commissioner must calculate the percentage of increase or decrease reflected in
the apportionment over or under the previous year's available state aid using the same
premiums as a basis for comparison.

(c) In addition to the amount for apportionment of police state aid under paragraph (a),
each year $100,000 must be apportioned for police state aid. An amount sufficient to pay
this increase is annually appropriated from the general fund.

(d) The commissioner must apportion police state aid to all municipalities in proportion
to the relationship that the total number of peace officers employed by that municipality for
the prior calendar year and the proportional or fractional number who were employed less
than a calendar year as credited under section 477C.02, subdivision 1, paragraph (c), bears
to the total number of peace officers employed by all municipalities subject to any reduction
under subdivision 3.

deleted text begin (e) Any necessary additional adjustments must be made to subsequent police state aid
apportionments.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 23.

Minnesota Statutes 2019 Supplement, section 477C.03, subdivision 5, is amended
to read:


Subd. 5.

Appeal.

A municipality may object to the amount of police state aid apportioned
to it by filing a written request with the commissioner to review and adjust the apportionment
of funds to the municipality.new text begin The objection of a municipality must be filed with the
commissioner within 60 days of the date the amount of apportioned police state aid is paid.
new text end
The decision of the commissioner is subject to appeal, review, and adjustment by the district
court in the county in which the applicable municipality is located or by the Ramsey County
District Court with respect to the Departments of Natural Resources or Public Safety.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 24.

Minnesota Statutes 2019 Supplement, section 477C.04, is amended by adding a
subdivision to read:


new text begin Subd. 4. new text end

new text begin Aid amount corrections. new text end

new text begin (a) An adjustment needed to correct a police state
aid overpayment or underpayment due to a clerical error must be made to subsequent police
state aid payments as provided in paragraphs (b) and (c). The authority to correct an aid
payment under this subdivision is limited to three years after the payment was issued.
new text end

new text begin (b) If the adjustment equals more than ten percent of the most recently paid aid amount,
the commissioner must reduce the aid a municipality is to receive by the amount overpaid
over a period of no more than three years. If the adjustment equals or is less than ten percent
of the most recently paid aid amount, the commissioner must reduce the next aid payment
occurring in 30 days or more by the amount overpaid.
new text end

new text begin (c) In the event of an underpayment, the commissioner must distribute the amount of
underpaid funds to the municipality over a period of no more than three years. An additional
distribution to a municipality must be paid from the general fund and must not diminish the
payments made to other municipalities under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 25. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2019 Supplement, sections 477B.02, subdivision 4; and 477B.03,
subdivision 6,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

ARTICLE 5

MISCELLANEOUS

Section 1.

Minnesota Statutes 2019 Supplement, section 270C.22, subdivision 1, is amended
to read:


Subdivision 1.

Adjustment; definition; period; rounding.

(a) The commissioner shall
annually make a cost of living adjustment to the dollar amounts noted in sections that
reference this section. The commissioner shall adjust the amounts based on the index as
provided in this section. For purposes of this section, "index" means the Chained Consumer
Price Index for All Urban Consumers published by the Bureau of Labor Statistics. The
values of the index used to determine the adjustments under this section are the latest
published values when the Bureau of Labor Statistics publishes the initial value of the index
for August of the year preceding the year to which the adjustment applies.

(b) For the purposes of this section, "statutory year" means the year preceding the first
year for which dollar amounts are to be adjusted for inflation under sections that reference
this section. For adjustments under chapter 290A, the statutory year refers to the year in
which a taxpayer's household income used to calculate refunds under chapter 290A was
earned and not the year in which refunds are payable. For all other adjustments, the statutory
year refers to the taxable year unless otherwise specified.

(c) To determine the dollar amounts for taxable year 2020, the commissioner shall
determine the percentage change in the index for the 12-month period ending on August
31, 2019, and increase each of the unrounded dollar amounts in the sections referencing
this section by that percentage change. For each subsequent taxable year, the commissioner
shall increase the dollar amounts by the percentage change in the index from August 31 of
the year preceding the statutory year to August 31 of the year preceding the taxable year.

(d) To determine the dollar amounts for refunds payable in 2020 under chapter 290A,
the commissioner shall determine the percentage change in the index for the 12-month
period ending on August 31, 2019, and increase each of the unrounded dollar amounts in
the sections referencing this section by that percentage change. For each subsequent year,
the commissioner shall increase the dollar amounts by the percentage change in the index
from August 31 of the deleted text beginyear preceding thedeleted text end statutory year to August 31 of the year preceding
the year in which refunds are payable.

(e) Unless otherwise provided, the commissioner shall round the amounts as adjusted
to the nearest $10 amount. If an amount ends in $5, the amount is rounded up to the nearest
$10 amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refunds based on property
taxes payable in 2020, and rent paid in 2019.
new text end

Sec. 2.

Minnesota Statutes 2018, section 270C.445, subdivision 3, is amended to read:


Subd. 3.

Standards of conduct.

No tax preparer shall:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(19) deleted text beginestablishdeleted text endnew text begin take control or ownership of a client's refund by any means, including:
new text end

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

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

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

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

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

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

(23) violate any provision of section 332.37;

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

(i) a hold harmless clause;

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2019 Supplement, section 289A.20, subdivision 4, is amended
to read:


Subd. 4.

Sales and use tax.

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

(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30
must remit the June liability for the next year in the following manner:

(1) Two business days before June 30 of calendar year 2020 and 2021, the vendor must
remit 87.5 percent of the estimated June liability to the commissioner. Two business days
before June 30 of calendar year 2022 and thereafter, the vendor must remit 84.5 percent of
the estimated June liability to the commissioner.

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

(c) A vendor having a liability of:

(1) $10,000 or more, but less than $250,000 during a fiscal year ending June 30, 2013,
and fiscal years thereafter, must remit by electronic means all liabilities on returns due for
periods beginning in all subsequent calendar years on or before the 20th day of the month
following the month in which the taxable event occurred, or on or before the 20th day of
the month following the month in which the sale is reported under section 289A.18,
subdivision 4
; or

(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years
thereafter, must remit by electronic means all liabilities in the manner provided in paragraph
(a) on returns due for periods beginning in the subsequent calendar year, except for deleted text begin90
percent
deleted text endnew text begin the percentagenew text end of the estimated June liability, new text beginas provided in paragraph (b), clause
(1),
new text endwhich is due two business days before June 30. The remaining amount of the June
liability is due on August 20.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2019 Supplement, section 290A.19, is amended to read:


290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.

(a) The owner or managing agent of any property for which rent is paid for occupancy
as a homestead must furnish a certificate of rent paid to a person who is a renter on December
31, in the form prescribed by the commissioner. If the renter moves before December 31,
the owner or managing agent may give the certificate to the renter at the time of moving,
or mail the certificate to the forwarding address if an address has been provided by the
renter. The certificate must be made available to the renter before February 1 of the year
following the year in which the rent was paid. The owner or managing agent must retain a
duplicate of each certificate or an equivalent record showing the same information for a
period of three years. The duplicate or other record must be made available to the
commissioner upon request.

(b) The commissioner may require the owner or managing agent, through a simple
process, to furnish to the commissioner on or before March 1 a copy of each certificate of
rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe
the content, format, and manner of the form pursuant to section 270C.30. new text beginThe commissioner
may require the Social Security number, individual taxpayer identification number, federal
employer identification number, or Minnesota taxpayer identification number of the owner
or managing agent who is required to furnish a certificate of rent paid under this paragraph.
new text end Prior to implementation, the commissioner, after consulting with representatives of owners
or managing agents, shall develop an implementation and administration plan for the
requirements of this paragraph that attempts to minimize financial burdens, administration
and compliance costs, and takes into consideration existing systems of owners and managing
agents.

(c) For the purposes of this section, "owner" includes a park owner as defined under
section 327C.01, subdivision 6, and "property" includes a lot as defined under section
327C.01, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certificates of rent paid furnished to
a renter for rent paid after December 31, 2019.
new text end

Sec. 5.

Minnesota Statutes 2018, section 295.75, subdivision 2, is amended to read:


Subd. 2.

Gross receipts tax imposed.

A tax is imposed on each liquor retailer equal to
2.5 percent of gross receipts from retail sales in Minnesota of liquor.new text begin The liquor retailer
may, but is not required to, collect the tax from the purchaser. If separately stated on the
invoice, bill of sale, or similar document given to the purchaser, the tax is excluded from
the sales price for purposes of the tax imposed under Minnesota Statutes, chapter 297A.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2019 Supplement, section 296A.06, subdivision 2, is amended
to read:


Subd. 2.

Suspension of license.

(a) Notwithstanding subdivision 1, the license of a
distributor, new text beginspecial new text endfuel dealer, or bulk purchaser that has not filed a tax return or report or
paid a delinquent tax or fee within five days after notice and demand by the commissioner
is suspended. The suspension remains in effect until the demanded tax return or report has
been filed and the tax and fees shown on that return or report have been paid. If the
commissioner determines that the failure to file or failure to pay is due to reasonable cause,
then a license must not be suspended, or if suspended, must be reinstated.

(b) A licensee whose license is suspended under this subdivision may request a contested
case hearing under chapter 14. Any such hearing must be held within 20 days of the issuance
of the notice and demand issued under paragraph (a), unless the parties agree to a later
hearing date. The administrative law judge's report must be issued within 20 days after the
close of the hearing record, unless the parties agree to a later report issuance date. The
commissioner must issue a final decision within 30 days after receipt of the report of the
administrative law judge and subsequent exceptions and argument under section 14.61. The
suspension imposed under paragraph (a) remains in effect during any contested case hearing
process requested pursuant to this paragraph.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2019 Supplement, section 297A.66, subdivision 3, is amended
to read:


Subd. 3.

Marketplace provider liability.

(a) A marketplace provider new text beginis deemed the
retailer or seller for all retail sales it facilitates, and
new text endis subject to audit on the retail sales it
facilitates if it is required to collect sales and use taxes and remit them to the commissioner
under subdivision 2, paragraphs (b) and (c).

(b) A marketplace provider is not liable for failing to file, collect, and remit sales and
use taxes to the commissioner if the marketplace provider demonstrates that the error was
due to incorrect or insufficient information given to the marketplace provider by the retailer.
This paragraph does not apply if the marketplace provider and the marketplace retailer are
related as defined in subdivision 4, paragraph (b).

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2018, section 297F.04, subdivision 2, is amended to read:


Subd. 2.

Refusal to issue or renew; revocation.

The commissioner must not issue or
renew a license under this chapter, and may revoke a license under this chapter, if the
applicant or licensee:

(1) owes $500 or more in delinquent taxes as defined in section 270C.72, subdivision
2
;

(2) after demand, has not filed tax returns required by the commissioner;

(3) had a cigarette or tobacco license revoked by the commissioner within the past two
years;

(4) had a sales and use tax permit revoked by the commissioner within the past two
years; or

(5) has been convicted of a crime involving cigarettesnew text begin or tobacco productsnew text end, including
but not limited to: selling stolen cigarettes or tobacco products, receiving stolen cigarettes
or tobacco products, or involvement in the smuggling of cigarettes or tobacco products.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2019 Supplement, section 297F.09, subdivision 10, is amended
to read:


Subd. 10.

Accelerated tax payment; cigarette or tobacco products distributor.

A
cigarette or tobacco products distributor having a liability of $250,000 or more during a
fiscal year ending June 30, shall remit the June liability for the next year in the following
manner:

(a) Two business days before June 30 of calendar years 2020 and 2021, the distributor
shall remit the actual May liability and 87.5 percent of the estimated June liability to the
commissioner and file the return in the form and manner prescribed by the commissioner.new text begin
Two business days before June 30 of calendar year 2022 and each calendar year thereafter,
the distributor must remit the actual May liability and 84.5 percent of the estimated June
liability to the commissioner and file the return in the form and manner prescribed by the
commissioner.
new text end

(b) On or before August 18 of the year, the distributor shall submit a return showing the
actual June liability and pay any additional amount of tax not remitted in June. A penalty
is imposed equal to ten percent of the amount of June liability required to be paid in June,
less the amount remitted in June. However, the penalty is not imposed if the amount remitted
in June equals deleted text beginthe lesser ofdeleted text end:

(1)new text begin for calendar year 2020, the lesser ofnew text end 87.5 percent of the actual June liability deleted text beginfor the
calendar year 2020 and 2021 June liabilities and 84.5 of the actual June liability for June
2022 and thereafter
deleted text endnew text begin or 87.5 percent of the preceding May liabilitynew text end; or

(2)new text begin for calendar year 2021, the lesser ofnew text end 87.5 percent of thenew text begin actual June liability or 87.5
percent of the
new text end preceding May liability deleted text beginfor the calendar year 2020 and 2021 June liabilities
and 84.5 percent of the preceding May liability for June 2022 and thereafter.
deleted text endnew text begin; or
new text end

deleted text begin (c)deleted text endnew text begin (3)new text end for calendar year 2022 and thereafter, the deleted text beginpercent of the estimateddeleted text endnew text begin lesser of 84.5
percent of the actual
new text end June liability deleted text beginthe vendor must remit by two business days before June
30 is
deleted text endnew text begin for that year ornew text end 84.5 percentnew text begin of the preceding May liabilitynew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estimated payments required to be
made after the date of final enactment.
new text end

Sec. 10.

Minnesota Statutes 2018, section 297F.17, subdivision 1, is amended to read:


Subdivision 1.

General rule.

Except as otherwise provided in this chapter, the amount
of any tax due must be assessed within 3-1/2 years after a return is filed. deleted text beginThe taxes are
considered assessed within the meaning of this section when the commissioner has prepared
a notice of tax assessment and mailed it to the person required to file a return to the post
office address given in the return. The notice of tax assessment must be sent by mail to the
post office address given in the return and the record of the mailing is presumptive evidence
of the giving of such notice, and such records must be preserved by the commissioner.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices of tax assessment issued after
the date of final enactment.
new text end

Sec. 11.

Minnesota Statutes 2019 Supplement, section 297G.09, subdivision 9, is amended
to read:


Subd. 9.

Accelerated tax payment; penalty.

A person liable for tax under this chapter
having a liability of $250,000 or more during a fiscal year ending June 30, shall remit the
June liability for the next year in the following manner:

(a) Two business days before June 30 of calendar years 2020 and 2021, the taxpayer
shall remit the actual May liability and 87.5 percent of the estimated June liability to the
commissioner and file the return in the form and manner prescribed by the commissioner.new text begin
Two business days before June 30 of calendar year 2022 and each calendar year thereafter,
the distributor must remit the actual May liability and 84.5 percent of the estimated June
liability to the commissioner and file the return in the form and manner prescribed by the
commissioner.
new text end

(b) On or before August 18 of the year, the taxpayer shall submit a return showing the
actual June liability and pay any additional amount of tax not remitted in June. A penalty
is imposed equal to ten percent of the amount of June liability required to be paid in June
less the amount remitted in June. However, the penalty is not imposed if the amount remitted
in June equals deleted text beginthe lesser ofdeleted text end:

(1)new text begin for calendar year 2020, the lesser ofnew text end 87.5 percent of the actual June liability deleted text beginfor the
calendar year 2020 and 2021 June liabilities and 84.5 percent of the actual June liability for
June 2022 and thereafter
deleted text endnew text begin or 87.5 percent of the preceding May liabilitynew text end; or

(2)new text begin for calendar year 2021, the lesser ofnew text end 87.5 percent of thenew text begin actual June liability or 87.5
percent of the
new text end preceding May liability deleted text beginfor the calendar year 2020 and 2021 June liabilities
and 84.5 percent of the preceding May liability for June 2022 and thereafter.
deleted text end

deleted text begin (c)deleted text endnew text begin (3)new text end for calendar year 2022 and thereafter, the deleted text beginpercent of the estimateddeleted text endnew text begin lesser of 84.5
percent of the actual
new text end June liability deleted text beginthe vendor must remit by two business days before June
30 is
deleted text endnew text begin for that year ornew text end 84.5 percentnew text begin of the preceding May liabilitynew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estimated payments required to be
made after the date of final enactment.
new text end

Sec. 12.

Minnesota Statutes 2018, section 609B.153, is amended to read:


609B.153 CIGARETTE AND TOBACCO DISTRIBUTOR OR SUBJOBBER
LICENSE; SUSPENSION OR REVOCATION.

Under section 297F.04, the commissioner of revenue must not issue or renew a license
issued under chapter 297F, and may revoke a license issued under chapter 297F, if the
applicant has been convicted of a crime involving cigarettesnew text begin or tobacco productsnew text end.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, section 270C.17, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

APPENDIX

Repealed Minnesota Statutes: 20-5507

270C.17 COMMISSIONER TO COLLECT CERTAIN LOCAL TAXES.

Subd. 2.

Development costs.

If the commissioner determines that a new computer system will be required to collect the local taxes, the costs of development of the system will be charged to the first local units of government to be included in the system. Any additional local units of government that by agreement are added to the system will be charged for a share of the development costs. The charge will be determined by the commissioner who shall then refund to the original local units of government their portion of the development costs recovered from the additional users.

477B.02 QUALIFYING FOR FIRE STATE AID.

Subd. 4.

Equipment requirements.

The fire department must have all of the following equipment, or the equivalent as determined by the state fire marshal, by December 31 of the year preceding the certification required in subdivision 8:

(1) a motorized fire truck equipped with:

(i) a motorized pump;

(ii) a 250-gallon or larger water tank;

(iii) 300 feet of one inch or larger fire hose in two lines with combination spray and straight stream nozzles;

(iv) five-gallon hand pumps - tank extinguisher or equivalent;

(v) a dry chemical extinguisher or equivalent;

(vi) ladders;

(vii) extension ladders;

(viii) pike poles;

(ix) crowbars;

(x) axes;

(xi) lanterns; and

(xii) fire coats, helmets, and boots;

(2) the items in clause (1) suitably housed in a building of good construction with facilities for care of hoses and equipment;

(3) a reliable and adequate method of receiving fire alarms by telephone or with electric siren and suitable means of sounding an alarm; and

(4) if response is to be provided outside the corporate limits of the municipality where the fire department is located, another piece of motorized apparatus to make the response.

477B.03 CALCULATION OF FIRE STATE AID; APPEAL.

Subd. 6.

Corrective aid adjustments.

Any adjustments needed to correct prior misallocations must be made to subsequent fire state aid apportionments.