Minnesota Legislature
SF 45
as introduced - 90th Legislature (2017 - 2018) Posted on 01/13/2017 08:43am
Current Version - as introduced
3.17 3.18
3.19 3.20 3.21 3.22 3.23 3.24
3.25 3.26
3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35
3.36
4.1 4.2 4.3 4.4 4.5
4.6
4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24
5.25 5.26
5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14
6.15
6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25
7.26
7.27 7.28 7.29 7.30 7.31 7.32 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19
9.20
9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15
10.16
10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30
10.31
11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9
11.10
11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18
12.19 12.20
12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27
13.28
14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21
14.22
14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24
15.25 15.26
15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15
16.16 16.17
16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 17.1 17.2 17.3
17.4 17.5
17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23
17.24 17.25
17.26 17.27 17.28 17.29 17.30 17.31 17.32 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 18.35 18.36 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28
19.29
19.30 19.31 19.32 19.33 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8
20.9 20.10
20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30
20.31
21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30
21.31 21.32
22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 24.1 24.2 24.3 24.4
24.5 24.6
24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 25.1 25.2
25.3
25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13
25.14 25.15
25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12
26.13
26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 27.1 27.2 27.3
27.4
27.5 27.6 27.7 27.8 27.9 27.10 27.11
27.12 27.13 27.14
27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25
27.26 27.27 27.28
27.29 27.30 27.31 28.1 28.2 28.3 28.4
28.5 28.6 28.7
28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26
28.27 28.28 28.29
28.30 28.31 28.32 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11
29.12 29.13 29.14
29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24
29.25 29.26 29.27
29.28 29.29 29.30 29.31 29.32 29.33 30.1 30.2 30.3 30.4
30.5
30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20
30.21 30.22
30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9
31.10 31.11
31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 32.1 32.2 32.3 32.4 32.5 32.6 32.7
32.8
32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 33.34 33.35 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9
34.10
34.11 34.12
34.13
34.14 34.15
34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27
34.28
34.29 34.30 34.31 35.1 35.2 35.3 35.4 35.5 35.6 35.7
35.8
35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30
35.31
36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10
36.11
36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27
36.28
37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22
40.23
40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 41.1 41.2
41.3
41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19
41.20
41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9
43.10
43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34
45.1
45.2 45.3 45.4 45.5 45.6
45.7 45.8
45.9 45.10 45.11 45.12 45.13
45.14 45.15
45.16 45.17 45.18 45.19 45.20
45.21 45.22 45.23
45.24 45.25 45.26 45.27 45.28 45.29 45.30 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17
46.18 46.19 46.20
46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32
46.33
47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21
47.22
47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 49.1 49.2 49.3
49.4 49.5
49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24
49.25 49.26 49.27
49.28 49.29 49.30 49.31 49.32 50.2 50.1 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10
50.11
50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20
50.21
50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31
50.32
51.1 51.2 51.3 51.4
51.5
51.6 51.7
51.8
51.9 51.10
51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12
52.13 52.14
52.15 52.16 52.17 52.18 52.19 52.20 52.21
52.22 52.23
52.24 52.25 52.26 52.27
52.28
53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10
54.11 54.12 54.13
54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14
55.15 55.16 55.17
55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25
55.26 55.27 55.28
55.29 55.30 55.31 56.1 56.2
56.3 56.4 56.5
56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16
56.17 56.18
56.19 56.20 56.21 56.22 56.23 56.24 56.25
56.26 56.27
56.28 56.29 56.30 56.31 56.32 57.1 57.2 57.3 57.4
57.5 57.6
57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22
57.23 57.24
57.25 57.26 57.27 57.28 57.29
57.30 57.31 58.1 58.2
58.3 58.4 58.5 58.6 58.7
58.8 58.9
58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19
60.20 60.21
60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14
62.15 62.16
62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29
62.30 62.31
63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34 64.35 65.1 65.2 65.3 65.4 65.5 65.6
65.7 65.8
65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21
65.22 65.23
65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 66.1 66.2 66.3 66.4 66.5 66.6
66.7 66.8
66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 68.1 68.2 68.3 68.4 68.5
68.6 68.7
68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15
68.16 68.17
68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 69.1 69.2 69.3 69.4 69.5
69.6 69.7
69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 70.1 70.2 70.3 70.4 70.5 70.6 70.7
70.8 70.9
70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 72.1 72.2 72.3 72.4 72.5 72.6 72.7
72.8 72.9
72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21
73.22 73.23
73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 74.1 74.2 74.3 74.4
74.5 74.6
74.7 74.8 74.9 74.10 74.11 74.12
74.13
74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 75.1 75.2 75.3 75.4 75.5 75.6
75.7 75.8
75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25
76.26 76.27
76.28 76.29 76.30
77.1 77.2 77.3
77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32
79.1 79.2
79.3 79.4
79.5 79.6 79.7 79.8
79.9 79.10 79.11 79.12
79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25
79.26
79.27 79.28 79.29 79.30 79.31 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12
80.13
80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21
80.22
80.23 80.24
80.25 80.26
80.27 80.28
80.29 80.30 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8
81.9 81.10
81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 85.1 85.2 85.3 85.4 85.5 85.6
85.7
85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33 86.1 86.2 86.3 86.4 86.5 86.6
86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17
86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 88.1 88.2 88.3
88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22
88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32
89.1 89.2
89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12
89.13 89.14
89.15 89.16 89.17 89.18 89.19
89.20
89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 90.1 90.2 90.3 90.4
90.5 90.6
90.7 90.8 90.9 90.10 90.11 90.12
90.13 90.14
90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25
91.26 91.27
91.28 91.29 91.30 91.31 91.32 91.33 92.1 92.2 92.3
92.4 92.5
92.6 92.7 92.8 92.9 92.10 92.11 92.12
92.13 92.14
92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24
92.25 92.26
92.27 92.28 92.29 92.30 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14
94.15 94.16 94.17 94.18
94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 95.1 95.2 95.3 95.4 95.5 95.6
95.7 95.8 95.9 95.10 95.11
95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21
95.22 95.23
95.24 95.25 95.26 95.27 95.28 95.29 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16
96.17
96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20
97.21 97.22 97.23
97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 97.34 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11
98.12 98.13 98.14
98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 98.33 98.34 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14
99.15 99.16 99.17
99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25
99.26 99.27
99.28 99.29 99.30 99.31 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15
100.16 100.17
100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 101.1 101.2 101.3 101.4 101.5 101.6
101.7 101.8 101.9
101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17
101.18 101.19
101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 102.1 102.2
102.3 102.4 102.5 102.6
102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25
103.26 103.27 103.28
103.29 103.30 103.31 103.32 103.33 103.34 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30
104.31 104.32 104.33
105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10
105.11
105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 106.1 106.2
106.3 106.4
106.5 106.6 106.7 106.8
106.9
106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21
106.22 106.23
106.24 106.25 106.26 106.27 106.28 106.29
107.1 107.2
107.3 107.4 107.5 107.6 107.7 107.8
107.9 107.10
107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26
107.27 107.28
107.29 107.30 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9
108.10 108.11
108.12 108.13 108.14 108.15 108.16
108.17 108.18
108.19 108.20 108.21 108.22 108.23
108.24 108.25
108.26 108.27 108.28 108.29
109.1 109.2
109.3 109.4 109.5 109.6
109.7 109.8
109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 110.1 110.2 110.3 110.4
110.5 110.6
110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24
110.25 110.26
110.27 110.28 110.29 110.30 110.31 110.32 111.1 111.2 111.3 111.4 111.5
111.6 111.7
111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26
111.27 111.28
111.29 111.30 111.31 111.32 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17
112.18 112.19
112.20 112.21 112.22 112.23 112.24
112.25 112.26
112.27 112.28 112.29 112.30 112.31 112.32
113.1 113.2
113.3 113.4 113.5 113.6 113.7 113.8
113.9 113.10
113.11 113.12 113.13 113.14
113.15
113.16 113.17 113.18 113.19 113.20
113.21
113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 114.1 114.2 114.3 114.4 114.5 114.6
114.7
114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17
114.18
114.19 114.20 114.21 114.22 114.23
114.24
114.25 114.26 114.27 114.28 114.29 114.30 114.31 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11
115.12
115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25
115.26
115.27 115.28 115.29 115.30 116.1 116.2
116.3
116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26
116.27 116.28
116.29 116.30 116.31
117.1
117.2 117.3
117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15
117.16
117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23
118.24 118.25
118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 118.34 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14
119.15
119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 119.33 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20
120.21 120.22
120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28
123.29
124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9
124.10
124.11 124.12
124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25
124.26
124.27 124.28 124.29 124.30 124.31 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 125.33 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19
126.20
126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20
127.21
127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17
128.18 128.19
128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 128.31 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 130.1 130.2 130.3 130.4 130.5
130.6 130.7 130.8
130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 130.33 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18
131.19 131.20 131.21
131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 131.33 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 132.32 132.33 132.34 132.35 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29
135.1 135.2 135.3
135.4 135.5 135.6 135.7 135.8 135.9
135.10 135.11 135.12
135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21
135.22 135.23 135.24
135.25 135.26 135.27 135.28
135.29 135.30 135.31 135.32
136.1 136.2 136.3 136.4 136.5 136.6
136.7 136.8 136.9
136.10 136.11 136.12 136.13 136.14
136.15 136.16 136.17
136.18 136.19 136.20 136.21 136.22 136.23
136.24 136.25 136.26
136.27 136.28 136.29 136.30 137.1 137.2 137.3 137.4 137.5 137.6 137.7
137.8 137.9
137.10 137.11
137.12 137.13 137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26
137.27 137.28 137.29 137.30 137.31 137.32 137.33 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16
138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9
139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 139.31 140.1 140.2 140.3 140.4
140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 140.33 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17 141.18 141.19 141.20 141.21 141.22 141.23 141.24 141.25
141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 141.34
142.1 142.2 142.3 142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12
142.13
142.14 142.15 142.16 142.17 142.18 142.19 142.20 142.21 142.22 142.23 142.24 142.25 142.26 142.27 142.28 142.29 142.30 142.31 142.32 142.33 143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15
143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31 143.32 143.33 144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9
144.10 144.11
144.12 144.13 144.14 144.15 144.16
144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30
145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17 145.18 145.19 145.20 145.21 145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29 145.30 145.31
146.1 146.2 146.3 146.4 146.5 146.6 146.7 146.8 146.9 146.10 146.11 146.12 146.13 146.14 146.15 146.16
146.17 146.18 146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27
146.28 146.29 146.30 146.31 146.32 146.33 147.1 147.2
147.3 147.4 147.5 147.6
147.7 147.8 147.9 147.10 147.11 147.12 147.13 147.14 147.15 147.16 147.17 147.18 147.19 147.20 147.21 147.22 147.23 147.24 147.25 147.26 147.27 147.28 147.29 147.30 147.31 147.32 147.33
148.1 148.2 148.3 148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15 148.16
148.17 148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30 148.31 148.32 148.33 148.34 149.1 149.2 149.3
149.4 149.5 149.6 149.7 149.8 149.9 149.10 149.11
149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31 149.32
150.1 150.2 150.3 150.4 150.5
150.6 150.7 150.8 150.9 150.10 150.11
150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25 150.26 150.27 150.28 150.29 150.30 150.31 151.1 151.2 151.3 151.4 151.5 151.6 151.7
151.8 151.9 151.10 151.11 151.12 151.13 151.14 151.15 151.16 151.17 151.18 151.19 151.20 151.21 151.22
151.23 151.24 151.25 151.26 151.27 151.28 151.29 151.30 151.31 152.1 152.2 152.3 152.4 152.5 152.6 152.7 152.8
152.9 152.10 152.11 152.12 152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20
152.21 152.22 152.23 152.24 152.25 152.26 152.27
152.28 152.29 152.30 152.31 152.32 153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15
153.16 153.17 153.18 153.19 153.20 153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 153.32 153.33 154.1 154.2
154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29 154.30 154.31 154.32 154.33 154.34 154.35 155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8 155.9 155.10 155.11 155.12 155.13 155.14 155.15 155.16 155.17 155.18 155.19 155.20 155.21 155.22 155.23 155.24 155.25 155.26 155.27 155.28 155.29 155.30 155.31 155.32 155.33 155.34 156.1 156.2
156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 156.32 157.1 157.2 157.3 157.4 157.5 157.6 157.7 157.8 157.9 157.10
157.11 157.12 157.13 157.14 157.15 157.16 157.17 157.18 157.19 157.20
157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8 158.9 158.10 158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27
158.28 158.29 158.30 158.31 158.32 158.33 159.1 159.2 159.3 159.4 159.5 159.6 159.7 159.8 159.9 159.10 159.11 159.12 159.13 159.14 159.15
159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 159.32 159.33 160.1 160.2 160.3 160.4 160.5 160.6 160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17 160.18 160.19 160.20 160.21 160.22 160.23
160.24 160.25 160.26 160.27 160.28 160.29 160.30 160.31 160.32 161.1 161.2 161.3 161.4 161.5 161.6 161.7 161.8 161.9 161.10 161.11 161.12 161.13
161.14 161.15 161.16 161.17 161.18 161.19 161.20 161.21 161.22 161.23 161.24 161.25
161.26 161.27 161.28 161.29 161.30 162.1 162.2
162.3 162.4 162.5 162.6 162.7 162.8 162.9 162.10 162.11 162.12
162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23
162.24 162.25 162.26 162.27 162.28 162.29 162.30 162.31 162.32 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20 163.21
163.22 163.23
163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31 164.1 164.2
164.3 164.4
164.5 164.6 164.7 164.8 164.9 164.10 164.11 164.12 164.13 164.14 164.15 164.16 164.17 164.18
164.19 164.20 164.21
164.22
164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19
165.20 165.21
165.22 165.23 165.24 165.25 165.26 165.27 165.28 165.29 165.30 165.31 165.32 165.33 165.34 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8
166.9 166.10
166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30 166.31 167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19 167.20 167.21 167.22 167.23 167.24 167.25
167.26 167.27
167.28 167.29 167.30 167.31 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 168.31 168.32 168.33 168.34 168.35 169.1 169.2 169.3 169.4 169.5 169.6 169.7 169.8 169.9 169.10 169.11 169.12
169.13 169.14
169.15 169.16 169.17 169.18 169.19 169.20 169.21 169.22 169.23 169.24 169.25 169.26 169.27 169.28 169.29 169.30 169.31 169.32 170.1 170.2 170.3 170.4 170.5 170.6 170.7
170.8 170.9
170.10 170.11 170.12 170.13 170.14 170.15 170.16 170.17 170.18 170.19 170.20 170.21 170.22 170.23 170.24 170.25 170.26 170.27 170.28 170.29 170.30 170.31 171.1 171.2 171.3 171.4
171.5 171.6
171.7 171.8 171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20 171.21 171.22 171.23 171.24 171.25 171.26 171.27 171.28 171.29 171.30 171.31 171.32 171.33
172.1 172.2
172.3 172.4 172.5 172.6 172.7 172.8 172.9 172.10 172.11 172.12 172.13
172.14 172.15
172.16 172.17 172.18 172.19 172.20 172.21 172.22 172.23 172.24 172.25 172.26 172.27 172.28 172.29 172.30 172.31 172.32 172.33 173.1 173.2 173.3 173.4 173.5 173.6 173.7 173.8 173.9 173.10 173.11 173.12 173.13 173.14 173.15 173.16 173.17 173.18 173.19 173.20 173.21 173.22 173.23 173.24 173.25
173.26 173.27 173.28
173.29 173.30 173.31 173.32 173.33 174.1 174.2 174.3 174.4 174.5 174.6 174.7 174.8 174.9 174.10 174.11 174.12 174.13 174.14 174.15
174.16
174.17 174.18 174.19 174.20 174.21 174.22 174.23 174.24 174.25 174.26 174.27 174.28 174.29 174.30 174.31 174.32 175.1 175.2 175.3 175.4 175.5 175.6 175.7 175.8 175.9 175.10 175.11 175.12 175.13 175.14 175.15
175.16 175.17
175.18 175.19 175.20 175.21 175.22 175.23 175.24
175.25
175.26
175.27 175.28
175.29
176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8 176.9
176.10
176.11 176.12 176.13 176.14 176.15
176.16
176.17 176.18
176.19
176.20 176.21
176.22 176.23 176.24 176.25 176.26 176.27 176.28 176.29 177.1 177.2 177.3 177.4 177.5 177.6 177.7 177.8 177.9 177.10 177.11 177.12 177.13 177.14 177.15 177.16 177.17 177.18
177.19
177.20 177.21 177.22 177.23 177.24 177.25 177.26 177.27 177.28 177.29 177.30 177.31 178.1 178.2 178.3 178.4 178.5 178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19 178.20 178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29 178.30 179.1 179.2 179.3 179.4 179.5 179.6 179.7 179.8 179.9 179.10 179.11 179.12 179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23 179.24 179.25 179.26 179.27 179.28 179.29 179.30 179.31 179.32 180.1 180.2 180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13 180.14 180.15 180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29
180.30
181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12 181.13 181.14 181.15 181.16 181.17 181.18 181.19 181.20 181.21 181.22 181.23 181.24 181.25 181.26 181.27 181.28 181.29 181.30 181.31 182.1 182.2 182.3 182.4 182.5 182.6 182.7 182.8 182.9 182.10 182.11 182.12 182.13 182.14 182.15 182.16 182.17 182.18 182.19 182.20 182.21 182.22 182.23 182.24 182.25 182.26 182.27 182.28 182.29 182.30 182.31 182.32 183.1 183.2 183.3
183.4 183.5 183.6 183.7 183.8 183.9 183.10 183.11 183.12 183.13
183.14
183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22 183.23 183.24 183.25 183.26 183.27 183.28 183.29
183.30
184.1 184.2 184.3 184.4 184.5 184.6 184.7 184.8 184.9 184.10 184.11 184.12 184.13 184.14 184.15 184.16 184.17 184.18 184.19 184.20 184.21 184.22 184.23 184.24 184.25
184.26 184.27 184.28
184.29 184.30 184.31 184.32 185.1 185.2 185.3 185.4 185.5 185.6 185.7 185.8 185.9 185.10 185.11 185.12
185.13 185.14
185.15 185.16 185.17 185.18 185.19 185.20 185.21 185.22 185.23 185.24 185.25 185.26 185.27 185.28 185.29 186.1 186.2 186.3 186.4
186.5 186.6
186.7 186.8 186.9 186.10 186.11 186.12 186.13 186.14 186.15 186.16 186.17 186.18 186.19 186.20 186.21 186.22 186.23 186.24 186.25 186.26 186.27 186.28 186.29 186.30 186.31 186.32 186.33 186.34 187.1 187.2
187.3 187.4
187.5 187.6 187.7 187.8 187.9 187.10 187.11 187.12 187.13 187.14
187.15
187.16 187.17 187.18 187.19 187.20 187.21 187.22 187.23 187.24 187.25 187.26 187.27 187.28 187.29
187.30 187.31
188.1 188.2 188.3 188.4 188.5 188.6
188.7
188.8 188.9 188.10 188.11 188.12 188.13 188.14 188.15 188.16 188.17 188.18 188.19 188.20 188.21 188.22 188.23 188.24 188.25 188.26 188.27 188.28 188.29 188.30 188.31 189.1 189.2 189.3 189.4 189.5 189.6 189.7 189.8 189.9 189.10 189.11 189.12 189.13 189.14 189.15 189.16 189.17 189.18
189.19
189.20 189.21 189.22 189.23
189.24 189.25 189.26
189.27 189.28 190.1 190.2 190.3 190.4 190.5 190.6 190.7 190.8 190.9 190.10 190.11 190.12
190.13
190.14 190.15 190.16 190.17 190.18 190.19 190.20 190.21 190.22 190.23 190.24 190.25 190.26 190.27 190.28 190.29
190.30 190.31
191.1 191.2 191.3 191.4 191.5 191.6 191.7 191.8 191.9 191.10 191.11 191.12 191.13 191.14 191.15 191.16 191.17 191.18 191.19 191.20 191.21 191.22 191.23 191.24 191.25 191.26 191.27 191.28 191.29 191.30 191.31 191.32 192.1 192.2 192.3 192.4 192.5 192.6 192.7 192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19 192.20 192.21 192.22 192.23
192.24 192.25 192.26
192.27 192.28 192.29 192.30 192.31 192.32 192.33 192.34 193.1 193.2 193.3 193.4 193.5 193.6 193.7 193.8 193.9 193.10 193.11 193.12 193.13 193.14 193.15 193.16 193.17 193.18
193.19 193.20
193.21 193.22 193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 193.32 193.33 194.1 194.2 194.3 194.4 194.5 194.6 194.7 194.8 194.9 194.10 194.11 194.12 194.13 194.14 194.15 194.16 194.17
194.18 194.19
194.20 194.21 194.22 194.23 194.24 194.25 194.26 194.27 194.28 194.29 194.30 194.31 194.32 194.33 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9 195.10 195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22 195.23
195.24 195.25
195.26 195.27 195.28 195.29 195.30 195.31 195.32 195.33 196.1 196.2 196.3 196.4 196.5 196.6 196.7 196.8 196.9 196.10 196.11 196.12 196.13 196.14 196.15 196.16 196.17 196.18
196.19
196.20 196.21 196.22 196.23 196.24 196.25 196.26 196.27 196.28 196.29 196.30 196.31 197.1 197.2 197.3 197.4 197.5 197.6 197.7 197.8 197.9 197.10
197.11
197.12 197.13 197.14 197.15 197.16 197.17 197.18 197.19
197.20 197.21
197.22 197.23 197.24 197.25 197.26 197.27 197.28 197.29 197.30 197.31 198.1 198.2 198.3 198.4 198.5
198.6 198.7
198.8 198.9 198.10 198.11 198.12 198.13 198.14 198.15 198.16 198.17 198.18 198.19 198.20 198.21 198.22 198.23 198.24 198.25 198.26
198.27
198.28 198.29 198.30 198.31 199.1 199.2 199.3 199.4 199.5 199.6 199.7 199.8 199.9 199.10 199.11 199.12 199.13 199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22 199.23 199.24 199.25 199.26 199.27 199.28 199.29 199.30 199.31 199.32 199.33 200.1 200.2 200.3 200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14 200.15 200.16 200.17 200.18 200.19 200.20 200.21 200.22 200.23 200.24 200.25 200.26
200.27
200.28 200.29 200.30 200.31 200.32 200.33
201.1
201.2 201.3 201.4 201.5 201.6 201.7 201.8 201.9 201.10 201.11 201.12 201.13 201.14 201.15 201.16 201.17 201.18 201.19 201.20 201.21 201.22 201.23 201.24
201.25 201.26
201.27 201.28 201.29 201.30 201.31 201.32 202.1 202.2 202.3 202.4 202.5 202.6
202.7 202.8
202.9 202.10 202.11 202.12 202.13 202.14 202.15 202.16 202.17 202.18 202.19 202.20 202.21 202.22 202.23 202.24
202.25 202.26
202.27 202.28 202.29 202.30 203.1 203.2 203.3 203.4 203.5 203.6 203.7 203.8 203.9 203.10 203.11 203.12 203.13 203.14 203.15 203.16 203.17 203.18 203.19 203.20 203.21 203.22 203.23 203.24 203.25 203.26 203.27 203.28 203.29 203.30 203.31 203.32 204.1 204.2 204.3 204.4 204.5 204.6 204.7 204.8 204.9 204.10 204.11 204.12
204.13 204.14
204.15 204.16 204.17 204.18 204.19 204.20 204.21 204.22 204.23 204.24 204.25 204.26 204.27 204.28 204.29 204.30 204.31 205.1 205.2 205.3 205.4 205.5 205.6 205.7 205.8
205.9 205.10
205.11 205.12 205.13
205.14 205.15 205.16 205.17
205.18 205.19 205.20
205.21 205.22 205.23 205.24 205.25 205.26 205.27 205.28 205.29 205.30 205.31 206.1 206.2 206.3 206.4 206.5 206.6 206.7 206.8 206.9 206.10 206.11 206.12 206.13 206.14 206.15 206.16 206.17
206.18
206.19 206.20 206.21 206.22 206.23 206.24 206.25 206.26 206.27 206.28 206.29
206.30
207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9 207.10 207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18
207.19
207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27 207.28 207.29 207.30 207.31 207.32 208.1 208.2 208.3 208.4 208.5
208.6 208.7
208.8 208.9 208.10 208.11 208.12 208.13 208.14
208.15
208.16 208.17 208.18
208.19
208.20 208.21 208.22
208.23
208.24 208.25 208.26 208.27 208.28 208.29 208.30 209.1 209.2
209.3
209.4 209.5 209.6 209.7 209.8 209.9 209.10 209.11 209.12 209.13 209.14 209.15
209.16
209.17 209.18 209.19 209.20 209.21 209.22 209.23 209.24 209.25 209.26 209.27 209.28 209.29 210.1 210.2 210.3 210.4 210.5 210.6 210.7 210.8 210.9 210.10 210.11 210.12 210.13 210.14 210.15 210.16
210.17 210.18
210.19 210.20 210.21 210.22 210.23 210.24 210.25
210.26
210.27 210.28 210.29 210.30 210.31 211.1 211.2 211.3 211.4 211.5 211.6 211.7 211.8 211.9 211.10 211.11 211.12 211.13 211.14 211.15 211.16 211.17 211.18 211.19 211.20 211.21 211.22 211.23 211.24 211.25 211.26 211.27 211.28 211.29 211.30 211.31 211.32
211.33 211.34
212.1 212.2 212.3 212.4 212.5 212.6 212.7 212.8 212.9 212.10 212.11 212.12 212.13 212.14 212.15 212.16 212.17 212.18 212.19 212.20 212.21 212.22 212.23 212.24 212.25 212.26 212.27 212.28 212.29 212.30 212.31 212.32 212.33 213.1 213.2 213.3 213.4 213.5 213.6 213.7 213.8 213.9 213.10 213.11 213.12 213.13 213.14 213.15 213.16 213.17 213.18 213.19
213.20
213.21 213.22 213.23 213.24 213.25
213.26
213.27 213.28 213.29 213.30 214.1 214.2 214.3 214.4 214.5 214.6 214.7 214.8 214.9
214.10
214.11 214.12 214.13 214.14
214.15
214.16 214.17 214.18 214.19 214.20 214.21 214.22 214.23
214.24
214.25 214.26 214.27
214.28 215.1 215.2 215.3 215.4 215.5 215.6 215.7 215.8 215.9
215.10
215.11 215.12 215.13 215.14 215.15 215.16 215.17 215.18 215.19 215.20 215.21 215.22 215.23
215.24
215.25 215.26 215.27 215.28 215.29 215.30
216.1
216.2 216.3 216.4 216.5 216.6 216.7
216.8
216.9 216.10 216.11 216.12 216.13 216.14
216.15
216.16 216.17 216.18 216.19 216.20 216.21 216.22
216.23
216.24 216.25 216.26 216.27 216.28 216.29 217.1 217.2 217.3 217.4 217.5 217.6 217.7
217.8 217.9 217.10
217.11 217.12 217.13 217.14 217.15 217.16
217.17
217.18 217.19 217.20 217.21 217.22 217.23 217.24
217.25
217.26 217.27 217.28 217.29 217.30 217.31 218.1 218.2 218.3 218.4
218.5 218.6
218.7 218.8 218.9 218.10 218.11 218.12 218.13 218.14 218.15 218.16 218.17 218.18 218.19 218.20 218.21 218.22 218.23 218.24 218.25 218.26
218.27
218.28 218.29 219.1 219.2 219.3 219.4 219.5 219.6 219.7 219.8 219.9 219.10 219.11 219.12 219.13 219.14 219.15 219.16 219.17 219.18 219.19 219.20 219.21 219.22 219.23 219.24 219.25 219.26 219.27 219.28 219.29
219.30
220.1 220.2 220.3 220.4
220.5
220.6 220.7 220.8 220.9 220.10 220.11 220.12 220.13 220.14
220.15
220.16 220.17 220.18 220.19 220.20 220.21 220.22
220.23
220.24 220.25 220.26 220.27 220.28 220.29 220.30 221.1 221.2
221.3 221.4
221.5 221.6 221.7 221.8 221.9 221.10 221.11 221.12 221.13 221.14 221.15 221.16 221.17 221.18 221.19 221.20 221.21 221.22 221.23 221.24 221.25 221.26 221.27 221.28 221.29 221.30 221.31 221.32 222.1 222.2 222.3 222.4 222.5 222.6 222.7 222.8 222.9 222.10 222.11 222.12 222.13 222.14 222.15 222.16 222.17 222.18 222.19 222.20 222.21 222.22 222.23 222.24 222.25 222.26 222.27 222.28 222.29 222.30 222.31 222.32 222.33 222.34 222.35 222.36 223.1 223.2 223.3 223.4 223.5 223.6 223.7 223.8 223.9 223.10 223.11 223.12 223.13 223.14 223.15 223.16 223.17 223.18 223.19 223.20 223.21 223.22 223.23 223.24 223.25 223.26
223.27
223.28 223.29 223.30 223.31 223.32 223.33
224.1
224.2 224.3 224.4 224.5 224.6 224.7 224.8 224.9 224.10 224.11 224.12 224.13 224.14 224.15 224.16 224.17 224.18 224.19 224.20 224.21 224.22
224.23
224.24 224.25 224.26 224.27 224.28 224.29 224.30 224.31 224.32 224.33 225.1 225.2 225.3 225.4 225.5 225.6 225.7
225.8 225.9
225.10 225.11 225.12 225.13 225.14 225.15 225.16 225.17 225.18 225.19 225.20 225.21 225.22 225.23 225.24 225.25 225.26 225.27 225.28 225.29 225.30 225.31 225.32 225.33
225.34
226.1 226.2 226.3 226.4 226.5 226.6 226.7 226.8 226.9 226.10 226.11 226.12 226.13 226.14 226.15 226.16 226.17 226.18 226.19 226.20 226.21 226.22 226.23 226.24 226.25 226.26 226.27 226.28 226.29 226.30 226.31 227.1 227.2 227.3 227.4 227.5 227.6 227.7 227.8
227.9
227.10 227.11 227.12 227.13 227.14 227.15 227.16 227.17
227.18
227.19 227.20 227.21 227.22 227.23 227.24
227.25
227.26 227.27 227.28 227.29 227.30 227.31 228.1 228.2
228.3
228.4 228.5 228.6 228.7 228.8 228.9 228.10 228.11 228.12 228.13 228.14 228.15 228.16 228.17 228.18 228.19 228.20 228.21 228.22 228.23 228.24 228.25 228.26 228.27 228.28 228.29 228.30 228.31 228.32 228.33 228.34 229.1 229.2 229.3 229.4 229.5 229.6 229.7 229.8 229.9 229.10 229.11 229.12 229.13 229.14 229.15 229.16 229.17 229.18 229.19 229.20 229.21 229.22 229.23 229.24 229.25 229.26 229.27 229.28 229.29 229.30 229.31 229.32 229.33 229.34 230.1 230.2 230.3 230.4 230.5 230.6
230.7
230.8 230.9 230.10 230.11 230.12 230.13 230.14 230.15 230.16 230.17 230.18 230.19 230.20 230.21 230.22 230.23 230.24 230.25 230.26 230.27 230.28 230.29 230.30 230.31 230.32 230.33 230.34 231.1 231.2 231.3 231.4 231.5 231.6 231.7 231.8 231.9 231.10 231.11 231.12 231.13 231.14 231.15 231.16 231.17 231.18 231.19 231.20 231.21 231.22 231.23 231.24
231.25 231.26
231.27 231.28 231.29 231.30 231.31 231.32 231.33 232.1 232.2 232.3 232.4 232.5 232.6 232.7 232.8 232.9 232.10 232.11 232.12 232.13 232.14 232.15 232.16 232.17 232.18 232.19 232.20 232.21 232.22 232.23 232.24 232.25 232.26 232.27 232.28 232.29 232.30 232.31 232.32 232.33 232.34 232.35 233.1 233.2
233.3 233.4
233.5 233.6 233.7 233.8 233.9 233.10 233.11 233.12 233.13 233.14 233.15 233.16 233.17 233.18 233.19 233.20 233.21 233.22 233.23 233.24 233.25 233.26 233.27 233.28 233.29 233.30 233.31 233.32 234.1 234.2 234.3 234.4 234.5 234.6 234.7 234.8
234.9
234.10 234.11 234.12 234.13 234.14 234.15
234.16
234.17 234.18 234.19 234.20 234.21 234.22 234.23 234.24 234.25 234.26 234.27 234.28 234.29 234.30 234.31 234.32 234.33 235.1 235.2 235.3 235.4 235.5 235.6 235.7 235.8 235.9 235.10 235.11 235.12 235.13 235.14 235.15 235.16 235.17
235.18
235.19 235.20 235.21 235.22 235.23 235.24 235.25 235.26 235.27 235.28 235.29 235.30 235.31 235.32 235.33 235.34 236.1 236.2 236.3 236.4 236.5 236.6 236.7 236.8 236.9 236.10 236.11 236.12 236.13 236.14 236.15 236.16 236.17 236.18 236.19 236.20 236.21 236.22 236.23 236.24 236.25 236.26 236.27 236.28 236.29 236.30 236.31 236.32 236.33 236.34 237.1 237.2 237.3 237.4 237.5 237.6 237.7 237.8 237.9 237.10 237.11 237.12 237.13 237.14 237.15 237.16 237.17 237.18 237.19 237.20 237.21 237.22 237.23 237.24 237.25 237.26 237.27 237.28 237.29 237.30 237.31 237.32 238.1 238.2 238.3 238.4 238.5 238.6 238.7 238.8 238.9 238.10 238.11 238.12 238.13 238.14 238.15 238.16 238.17 238.18 238.19 238.20 238.21 238.22 238.23 238.24 238.25 238.26 238.27 238.28 238.29
238.30
238.31 238.32 238.33 238.34 239.1 239.2 239.3 239.4 239.5 239.6 239.7 239.8 239.9 239.10 239.11 239.12 239.13 239.14 239.15 239.16 239.17 239.18 239.19 239.20 239.21 239.22 239.23 239.24 239.25 239.26 239.27 239.28 239.29 239.30 239.31 239.32 239.33 239.34 239.35 240.1 240.2 240.3 240.4 240.5 240.6 240.7 240.8 240.9 240.10 240.11 240.12 240.13 240.14 240.15 240.16 240.17 240.18 240.19
240.20
240.21 240.22 240.23 240.24 240.25
240.26
240.27 240.28 240.29 240.30 240.31
240.32
241.1 241.2 241.3 241.4 241.5
241.6
241.7 241.8 241.9 241.10 241.11 241.12 241.13
241.14 241.15
241.16 241.17 241.18 241.19 241.20 241.21 241.22
241.23
241.24 241.25 241.26 241.27 241.28 241.29 241.30 242.1 242.2 242.3 242.4 242.5 242.6 242.7 242.8 242.9 242.10 242.11 242.12 242.13 242.14 242.15 242.16
242.17 242.18 242.19
242.20 242.21 242.22
242.23 242.24
242.25 242.26
242.27 242.28 242.29 242.30 242.31 243.1 243.2 243.3 243.4 243.5
243.6
243.7 243.8 243.9 243.10 243.11 243.12 243.13 243.14 243.15 243.16 243.17 243.18 243.19 243.20 243.21 243.22 243.23 243.24 243.25 243.26 243.27 243.28 243.29 243.30 243.31 243.32 244.1 244.2 244.3 244.4 244.5 244.6 244.7 244.8 244.9 244.10 244.11 244.12 244.13
244.14 244.15
244.16 244.17 244.18 244.19 244.20 244.21 244.22 244.23 244.24 244.25 244.26 244.27 244.28 244.29 244.30 244.31 244.32 245.1 245.2 245.3 245.4 245.5 245.6 245.7 245.8 245.9 245.10 245.11 245.12 245.13 245.14 245.15 245.16 245.17 245.18 245.19 245.20 245.21 245.22 245.23 245.24
245.25
245.26 245.27 245.28 245.29 245.30
245.31
246.1 246.2 246.3 246.4 246.5 246.6 246.7 246.8 246.9 246.10 246.11 246.12 246.13 246.14
246.15 246.16
246.17 246.18 246.19 246.20 246.21 246.22 246.23 246.24 246.25
246.26 246.27
246.28 246.29 246.30 246.31 246.32 246.33 247.1 247.2 247.3 247.4 247.5 247.6 247.7 247.8
247.9 247.10
247.11 247.12 247.13 247.14 247.15 247.16 247.17
247.18
247.19 247.20 247.21 247.22 247.23
247.24 247.25
247.26 247.27 247.28 247.29 247.30 247.31
248.1 248.2
248.3 248.4 248.5 248.6 248.7 248.8 248.9 248.10 248.11 248.12 248.13 248.14 248.15 248.16 248.17 248.18
248.19 248.20
248.21 248.22 248.23 248.24 248.25 248.26 248.27 248.28 248.29
248.30 248.31
249.1 249.2 249.3 249.4 249.5 249.6 249.7 249.8 249.9 249.10
249.11
249.12 249.13 249.14 249.15 249.16 249.17 249.18 249.19 249.20 249.21
249.22
249.23 249.24 249.25 249.26 249.27 249.28 249.29 249.30 249.31 249.32 250.1 250.2 250.3 250.4 250.5 250.6 250.7 250.8 250.9 250.10 250.11 250.12 250.13 250.14 250.15 250.16 250.17 250.18 250.19 250.20 250.21
250.22 250.23
250.24 250.25 250.26 250.27 250.28 250.29
250.30 250.31
251.1 251.2 251.3 251.4 251.5 251.6 251.7 251.8 251.9 251.10 251.11 251.12 251.13 251.14 251.15 251.16 251.17 251.18 251.19 251.20 251.21 251.22 251.23 251.24 251.25 251.26 251.27 251.28 251.29 251.30 251.31 251.32 251.33 251.34
251.35
252.1 252.2 252.3 252.4 252.5 252.6 252.7 252.8 252.9 252.10 252.11 252.12 252.13 252.14 252.15 252.16 252.17 252.18 252.19 252.20 252.21 252.22 252.23 252.24 252.25 252.26 252.27 252.28 252.29 252.30
252.31
252.32 252.33 252.34 253.1 253.2 253.3 253.4 253.5 253.6 253.7 253.8 253.9 253.10 253.11 253.12 253.13 253.14 253.15 253.16
253.17
253.18 253.19 253.20 253.21 253.22 253.23 253.24 253.25 253.26 253.27 253.28 253.29 253.30 253.31 253.32 254.1 254.2 254.3 254.4
254.5 254.6 254.7
254.8 254.9 254.10 254.11 254.12 254.13 254.14 254.15 254.16 254.17 254.18
254.19
254.20 254.21 254.22 254.23 254.24 254.25 254.26 254.27
254.28
254.29 254.30 254.31 254.32 255.1 255.2 255.3 255.4 255.5 255.6 255.7 255.8 255.9 255.10 255.11 255.12 255.13 255.14 255.15 255.16 255.17 255.18 255.19 255.20 255.21 255.22 255.23 255.24 255.25 255.26 255.27 255.28 255.29 255.30 255.31 255.32 255.33 255.34 255.35 256.1 256.2 256.3 256.4 256.5 256.6 256.7 256.8 256.9 256.10 256.11 256.12 256.13 256.14 256.15 256.16
256.17
256.18 256.19 256.20 256.21 256.22 256.23 256.24 256.25 256.26 256.27 256.28 256.29 256.30 256.31 256.32 257.1 257.2 257.3 257.4 257.5 257.6 257.7
257.8
257.9 257.10 257.11 257.12 257.13 257.14 257.15 257.16 257.17 257.18
257.19
257.20 257.21 257.22 257.23 257.24 257.25
257.26
257.27 257.28 257.29 257.30 257.31 258.1 258.2 258.3 258.4 258.5 258.6 258.7 258.8 258.9 258.10 258.11 258.12 258.13
258.14
258.15 258.16 258.17 258.18 258.19 258.20 258.21 258.22 258.23 258.24 258.25 258.26 258.27 258.28 258.29 258.30 258.31 258.32 258.33 259.1 259.2 259.3 259.4 259.5 259.6 259.7
259.8
259.9 259.10 259.11 259.12 259.13 259.14 259.15 259.16 259.17 259.18 259.19 259.20 259.21 259.22 259.23 259.24 259.25 259.26 259.27 259.28 259.29 259.30 259.31 260.1 260.2 260.3 260.4 260.5 260.6 260.7 260.8 260.9
260.10
260.11 260.12 260.13 260.14 260.15 260.16 260.17 260.18 260.19 260.20 260.21 260.22 260.23 260.24 260.25 260.26 260.27 260.28 260.29 260.30 260.31 261.1 261.2
261.3 261.4 261.5 261.6 261.7
261.8 261.9 261.10 261.11 261.12 261.13 261.14 261.15 261.16 261.17 261.18 261.19 261.20 261.21 261.22 261.23 261.24 261.25 261.26 261.27 261.28
261.29 261.30
262.1 262.2 262.3
262.4
262.5 262.6 262.7 262.8
262.9
262.10 262.11 262.12
262.13
262.14 262.15 262.16 262.17 262.18
262.19
262.20 262.21 262.22 262.23 262.24
262.25
263.1 263.2 263.3 263.4 263.5 263.6 263.7 263.8 263.9 263.10 263.11 263.12 263.13 263.14
263.15 263.16
263.17 263.18 263.19 263.20 263.21 263.22 263.23
263.24 263.25
263.26 263.27 263.28 263.29 263.30 263.31 264.1 264.2
264.3
264.4 264.5 264.6 264.7 264.8 264.9 264.10 264.11 264.12 264.13 264.14 264.15 264.16 264.17 264.18 264.19 264.20 264.21 264.22 264.23 264.24 264.25 264.26 264.27 264.28
264.29
264.30 264.31 264.32 265.1 265.2 265.3 265.4 265.5 265.6 265.7 265.8 265.9
265.10
265.11 265.12 265.13 265.14 265.15 265.16 265.17 265.18
265.19
265.20 265.21 265.22 265.23 265.24 265.25 265.26 265.27 265.28 265.29
265.30
266.1 266.2 266.3 266.4 266.5 266.6 266.7 266.8 266.9 266.10 266.11 266.12 266.13 266.14 266.15
266.16
266.17 266.18 266.19 266.20 266.21 266.22 266.23
266.24 266.25
266.26 266.27 266.28 266.29 266.30 266.31 266.32 267.1 267.2 267.3 267.4 267.5 267.6
267.7
267.8 267.9 267.10 267.11 267.12 267.13 267.14
267.15 267.16
267.17 267.18 267.19 267.20
267.21
267.22 267.23 267.24 267.25 267.26 267.27 267.28 267.29 267.30 268.1 268.2 268.3 268.4 268.5 268.6
268.7 268.8
268.9 268.10 268.11 268.12 268.13 268.14 268.15 268.16 268.17 268.18 268.19 268.20 268.21 268.22 268.23 268.24 268.25 268.26 268.27 268.28 268.29 268.30 268.31 269.1 269.2 269.3 269.4
269.5 269.6
269.7 269.8
269.9
A bill for an act
relating to financing of state and local government; making changes to property,
individual income, corporate franchise, estate, sales and use, excise, petroleum
and other fuel, gambling, tobacco, special, mineral, local, and other taxes and
tax-related provisions; modifying local government aids and credits; amending
county levy authority; exempting certain electric generation facility property and
soccer stadium property from property tax; extending homestead value exclusion
for spouses of qualifying deceased veterans; amending the state general levy;
abating local property taxes in the Lake Mille Lacs area; establishing school
building bond agricultural credit; establishing reimbursement for certain
out-of-home placements of Indian children; establishing riparian protection aid;
forgiving certain aid penalties; providing for federal tax conformity; modifying
income tax credits; providing income tax credits; changing income tax
modifications; modifying residency rules; modifying sales and use tax definitions;
modifying sales and use tax collection requirements; modifying sales and use tax
exemptions; providing for reimbursement from the Minnesota Sports Facilities
Authority of certain sales and use taxes; allocating certain sales and use tax
revenues; modifying and allowing certain local sales and use taxes; modifying
provisions for gasoline used as a substitute for aviation gasoline; providing
definitions and a tax rate for vapor products; modifying taconite tax distributions
and deposits; providing for local development projects; modifying public finance
provisions; transferring approval authority from the Iron Range Resources and
Rehabilitation Board to the commissioner of Iron Range resources and
rehabilitation; requiring the commissioner of Iron Range resources and rehabilitation
to seek a recommendation from the board in certain circumstances; providing for
transfer of ownership, eligibility, certification, and notification requirements for
enrollment of land in the Sustainable Forest Incentive Act; modifying the budget
reserve; providing a new markets grant program; providing a tax time savings
grant program; providing civil and criminal penalties for sales suppression devices;
allocating additional amounts to the border city enterprise zones; making clarifying
and conforming changes; removing obsolete language; requiring reports;
appropriating money; amending Minnesota Statutes 2016, sections 13.51,
subdivision 2; 15.38, subdivision 7; 16A.152, subdivision 2; 69.021, subdivision
5; 116J.424; 127A.45, subdivisions 10, 13; 128C.24; 136A.129, subdivision 3;
136G.05, subdivision 10; 138.053; 216B.161, subdivision 1; 270.071, subdivisions
2, 7, 8, by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision;
270.12, by adding a subdivision; 270.82, subdivision 1; 270A.03, subdivision 5;
270B.14, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, subdivision
2; 270C.347, subdivision 1; 270C.35, subdivision 3, by adding a subdivision;
270C.38, subdivision 1; 270C.445, by adding a subdivision; 270C.446, subdivision
5; 270C.72, subdivision 4; 270C.89, subdivision 1; 271.06, subdivisions 2, 7;
271.08, subdivision 1; 271.21, subdivision 2; 272.02, subdivisions 9, 10, by adding
subdivisions; 272.0211, subdivision 1; 272.025, subdivision 1; 272.029,
subdivisions 2, 4, by adding a subdivision; 272.0295, subdivision 4; 272.115,
subdivision 2; 272.162; 273.061, subdivision 7; 273.08; 273.121, by adding a
subdivision; 273.124, subdivision 13; 273.13, subdivisions 22, 34; 273.1392;
273.1393; 273.33, subdivisions 1, 2; 273.371; 273.372, subdivisions 1, 2, 4, by
adding subdivisions; 274.01, subdivision 1; 274.13, subdivision 1; 274.135,
subdivision 3; 275.025, subdivisions 1, 2, 4; 275.065, subdivisions 1, 3; 275.066;
275.07, subdivisions 1, 2; 275.08, subdivision 1b; 275.62, subdivision 2; 276.04,
subdivision 2; 276.11, subdivision 1; 276.111; 276A.01, subdivisions 8, 17; 278.01,
subdivision 1; 278.12; 278.14, subdivision 1; 279.01, subdivisions 1, 2, 3; 279.03,
subdivision 2; 279.37, subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261,
subdivision 2; 282.38, subdivision 1; 287.2205; 289A.02, subdivision 7; 289A.08,
subdivisions 11, 16, by adding a subdivision; 289A.09, subdivisions 1, 2; 289A.11,
subdivision 1; 289A.12, subdivision 14; 289A.18, subdivision 1, by adding a
subdivision; 289A.20, subdivision 2; 289A.31, subdivision 1; 289A.35; 289A.37,
subdivision 2; 289A.38, subdivision 6; 289A.50, subdivision 7; 289A.60,
subdivision 28, by adding a subdivision; 289A.63, by adding a subdivision; 290.01,
subdivisions 7, 19, 31; 290.0131, subdivision 10; 290.0132, subdivisions 14, 21,
by adding subdivisions; 290.0133, subdivision 12; 290.0134, subdivision 14;
290.06, subdivision 22; 290.067, subdivisions 1, 2b; 290.0671, subdivisions 1, 7;
290.0672, subdivision 1; 290.0674, subdivision 2, by adding a subdivision;
290.0677, subdivision 1a; 290.068, subdivision 2; 290.0685, subdivision 1;
290.0692, by adding a subdivision; 290.091, subdivision 2; 290.0922, subdivision
2; 290.17, subdivision 2; 290.31, subdivision 1; 290A.03, subdivisions 13, 15;
290A.19; 290C.01; 290C.02, subdivisions 1, 3, 6; 290C.03; 290C.04; 290C.05;
290C.055; 290C.07; 290C.08, subdivision 1; 290C.10; 290C.11; 290C.13,
subdivision 6; 291.005, subdivision 1; 291.016, subdivisions 2, 3; 291.03,
subdivisions 9, 11; 295.54, subdivision 2; 295.55, subdivision 6; 296A.01,
subdivisions 12, 33, 42, by adding subdivisions; 296A.02, by adding a subdivision;
296A.07, subdivisions 1, 4; 296A.08, subdivision 2; 296A.09, subdivisions 1, 3,
5, 6; 296A.15, subdivisions 1, 4; 296A.17, subdivisions 1, 2, 3; 296A.18,
subdivisions 1, 8; 296A.19, subdivision 1; 296A.22, subdivision 9; 296A.26;
297A.61, subdivisions 3, 10; 297A.66, subdivisions 1, 2, 4, by adding a subdivision;
297A.67, subdivision 7a, by adding subdivisions; 297A.68, subdivision 9; 297A.70,
subdivisions 11, 14; 297A.71, by adding subdivisions; 297A.75, subdivisions 1,
2, 3; 297A.815, subdivision 3; 297A.82, subdivisions 4, 4a; 297D.02; 297E.02,
subdivisions 3, 7; 297E.04, subdivision 1; 297E.05, subdivision 4; 297E.06,
subdivision 1; 297F.01, subdivision 19, by adding subdivisions; 297F.05,
subdivisions 1, 3, by adding subdivisions; 297F.09, subdivision 1; 297F.23;
297G.09, subdivision 1; 297G.22; 297H.04, subdivision 2; 297H.06, subdivision
2; 297I.05, subdivision 2; 297I.10, subdivisions 1, 3; 297I.30, by adding a
subdivision; 297I.60, subdivision 2; 298.001, subdivision 8; 298.01, subdivision
4c; 298.22, subdivisions 1, 1a, 5a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3;
298.2213, subdivisions 4, 5, 6; 298.223, subdivisions 1, 2; 298.227; 298.24, by
adding a subdivision; 298.28, subdivisions 3, 5, 7a, 9d; 298.292, subdivision 2;
298.296, subdivisions 1, 2, 4; 298.2961, subdivisions 2, 4; 298.298; 298.46,
subdivision 2; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32; 412.301;
469.034, subdivision 2; 469.101, subdivision 1; 469.169, by adding a subdivision;
469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.319, subdivision 5;
473.39, by adding a subdivision; 473H.09; 475.58, subdivision 3b; 475.60,
subdivision 2; 477A.013, by adding a subdivision; 477A.017, subdivisions 2, 3;
477A.03, subdivisions 2a, 2b; 477A.17; 477A.19, by adding subdivisions; 559.202,
subdivision 2; 609.5316, subdivision 3; Laws 1980, chapter 511, sections 1,
subdivision 2, as amended; 2, as amended; Laws 1988, chapter 645, section 3, as
amended; Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended,
4, as amended, 5; Laws 1996, chapter 471, article 2, section 29, subdivisions 1, as
amended, 4, as amended; article 3, section 51; Laws 1999, chapter 243, article 4,
section 18, subdivision 1, as amended; Laws 2001, First Special Session chapter
5, article 3, section 86; Laws 2008, chapter 154, article 9, section 21, subdivision
2; Laws 2008, chapter 366, article 7, section 20; Laws 2009, chapter 88, article 2,
section 46, subdivisions 1, as amended, 2, 3, as amended, 4, 5; article 5, section
17, as amended; Laws 2010, chapter 216, sections 12, as amended; 58, as amended;
Laws 2014, chapter 308, article 1, section 14, subdivision 2; article 6, section 9;
article 9, section 94; Laws 2016, chapter 187, section 5; Laws 2016, chapter 189,
article 30, section 25, subdivision 5; proposing coding for new law in Minnesota
Statutes, chapters 103C; 116J; 216B; 270C; 273; 289A; 290; 290B; 290C; 293;
477A; repealing Minnesota Statutes 2016, sections 272.02, subdivision 23; 281.22;
290.067, subdivisions 2, 2a; 290C.02, subdivisions 5, 9; 290C.06; 297F.05,
subdivision 1a; 477A.20; Minnesota Rules, parts 8092.1400; 8092.2000; 8100.0700;
8125.1300, subpart 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
PROPERTY TAX
Section 1.
new text begin
[103C.333] COUNTY LEVY AUTHORITY.
new text end
new text begin
Notwithstanding any other law to the contrary, a county levying a tax under section
103C.331 shall not include any taxes levied under those authorities in the levy certified
under section 275.07, subdivision 1, paragraph (a). A county levying under section 103C.331
shall separately certify that amount, and the auditor shall extend that levy as a special taxing
district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for certifications made in 2017 and
thereafter.
new text end
Sec. 2.
Minnesota Statutes 2016, section 138.053, is amended to read:
138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.
The governing body of any home rule charter or statutory city or town may annually
appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
market value, derived from ad valorem taxes on property or other revenues, to be paid to
the historical society of its respective new text begin city, town, or new text end county to be used for the promotion of
historical work and to aid in defraying the expenses of carrying on the historical work in
the county. No city or town may appropriate any funds for the benefit of any historical
society unless the society is affiliated with and approved by the Minnesota Historical Society.
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.
new text begin
[216B.1648] PROPERTY TAX ADJUSTMENT; COOPERATIVE
ASSOCIATION.
new text end
new text begin
A cooperative electric association that has elected to be subject to rate regulation under
section 216B.026 is eligible to file with the commission for approval of an adjustment for
real and personal property taxes, fees, and permits.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to
read:
new text begin Subd. 100. new text end
new text begin Electric generation facility; personal property. new text end
new text begin
(a) Notwithstanding
subdivision 9, clause (a), attached machinery, transformers, and other personal property
that (1) is part of a natural gas-fired combined heat and power facility, (2) generates electricity
and steam for at least partial consumption as part of an industrial use, including corn
processing, (3) is less than 80,000 kilowatts of installed capacity, and (4) meets the
requirements of this subdivision, are exempt.
new text end
new text begin
(b) At the time of construction, the facility must:
new text end
new text begin
(1) be designed to utilize natural gas as a primary fuel;
new text end
new text begin
(2) not be owned by a public utility as defined in section 216B.02, subdivision 4;
new text end
new text begin
(3) be located within 15 miles of an existing natural gas pipeline and within one mile of
an existing electrical transmission substation; and
new text end
new text begin
(4) be located outside the metropolitan area as defined in section 473.121, subdivision
2.
new text end
new text begin
(c) Construction of the facility must commence after January 1, 2015, and before January
1, 2019. Property eligible for this exemption does not include electric transmission lines
and interconnections, or gas pipelines and interconnections, appurtenant to the property or
the facility.
new text end
new text begin
(d) In lieu of personal property taxes each year, the owner of the combined heat and
power facility shall pay a base payment of 0.14 cents per kilowatt-hour of electricity produced
by the facility during the previous calendar year. In addition to the base payment and in lieu
of personal property taxes each year, the owner of the combined heat and power facility
shall pay an additional payment of 0.08 cents per kilowatt-hour of electricity produced by
the facility during the previous calendar year if, during the previous calendar year, the host
township or city had an agreement with a municipal utilities commission to share the cost
of acquiring, developing, and marketing land for industrial purposes, and under such
agreement both the host township or city and the municipal utilities commission provided
funds during the previous calendar year as part of a cost-sharing agreement. The additional
payment to be paid by the owner of the combined heat and power facility shall be the lesser
of 0.08 cents per kilowatt-hour of electricity produced by the facility or 57 percent of the
amount funded by the host township or city during the previous calendar year pursuant to
the aforementioned cost-sharing agreement. The payments imposed under this section shall
be paid to the county treasurer for the benefit of the host township or city, at the time and
in the manner provided for payment of property taxes under section 277.01, subdivision 3.
If unpaid, the payments are subject to the same enforcement, collection, and interest and
penalties as delinquent personal property taxes. Except to the extent inconsistent with this
section, sections 277.01 to 277.24 and 278.01 to 278.13 apply to the payments imposed
under this section, and for purposes of those sections the payments imposed under this
section are considered personal property taxes.
new text end
new text begin
(e) The owner of the combined heat and power facility shall file a report with the
commissioner of revenue annually on or before February 1, detailing the amount of electricity
in kilowatt-hours that was produced by the facility and the amount funded by the host
township or city in accordance with the cost-sharing agreement described in paragraph (d)
during the previous calendar year. The commissioner shall prescribe the form of the report.
The report must contain the information required by the commissioner to determine the
payments due under this section payable in the current year. If an owner of the facility
subject to taxation under this section fails to file the report by the due date, the commissioner
of revenue shall determine the payments based upon the nameplate capacity of the system
multiplied by a capacity factor of 85 percent.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable beginning in 2018 and
thereafter.
new text end
Sec. 5.
Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to
read:
new text begin Subd. 101. new text end
new text begin Electric generation facility; personal property. new text end
new text begin
(a) Notwithstanding
subdivision 9, clause (a), attached machinery and other personal property that is part of an
electric generation facility with more than 35 megawatts and less than 40 megawatts of
installed capacity and that meets the requirements of this subdivision is exempt from taxes
and payments in lieu of taxes. The facility must:
new text end
new text begin
(1) be designed to utilize natural gas as a primary fuel;
new text end
new text begin
(2) be owned and operated by a municipal power agency as defined in section 453.52,
subdivision 8;
new text end
new text begin
(3) be located within 800 feet of an existing natural gas pipeline;
new text end
new text begin
(4) satisfy a resource deficiency identified in an approved integrated resource plan filed
under section 216B.2422;
new text end
new text begin
(5) be located outside the metropolitan area as defined under section 473.121, subdivision
2; and
new text end
new text begin
(6) have received, by resolution, the approval of the governing bodies of the city and
county in which it is located for the exemption of personal property provided by this
subdivision.
new text end
new text begin
(b) Construction of the facility must have been commenced after January 1, 2015, and
before January 1, 2016. Property eligible for this exemption does not include electric
transmission lines and interconnections or gas pipelines and interconnections appurtenant
to the property or the facility.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2018 and thereafter.
new text end
Sec. 6.
Minnesota Statutes 2016, section 272.162, is amended to read:
272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.
Subdivision 1.
Conditions restricting transfer.
When a deed or other instrument
conveying a parcel of land is presented to the county auditor for transfer or division under
sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its
net tax capacity in the official records and shall not certify the instrument as provided in
section 272.12, if:
(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;
(b) The part conveyed appears within the area of application of municipal new text begin or countynew text end
subdivision regulations adopted and filed under new text begin section 394.35 or new text end section 462.36, subdivision
1; and
(c) The part conveyed is part of or constitutes a subdivision as defined in section 462.352,
subdivision 12.
Subd. 2.
Conditions allowing transfer.
new text begin (a) new text end Notwithstanding the provisions of subdivision
1, the county auditor may transfer or divide the land and its net tax capacity and may certify
the instrument if the instrument contains a certification by the clerk of the municipalitynew text begin or
designated county planning officialnew text end :
deleted text begin (a)deleted text end new text begin (1)new text end that the municipality'snew text begin or county'snew text end subdivision regulations do not apply;
deleted text begin (b)deleted text end new text begin (2)new text end that the subdivision has been approved by the governing body of the municipalitynew text begin
or countynew text end ; or
deleted text begin (c)deleted text end new text begin (3)new text end that the restrictions on the division of taxes and filing and recording have been
waived by resolution of the governing body of the municipality new text begin or county new text end in the particular
case because compliance would create an unnecessary hardship and failure to comply would
not interfere with the purpose of the regulations.
new text begin (b) new text end If any of the conditions for certification by the municipalitynew text begin or countynew text end as provided
in this subdivision exist and the municipalitynew text begin or countynew text end does not certify that they exist within
24 hours after the instrument of conveyance has been presented to the clerk of the
municipalitynew text begin or designated county planning officialnew text end , the provisions of subdivision 1 do not
apply.
new text begin (c) new text end If an unexecuted instrument is presented to the municipality new text begin or county new text end and any of
the conditions for certification by the municipality new text begin or county new text end as provided in this subdivision
exist, the unexecuted instrument must be certified by the clerk of the municipalitynew text begin or the
designated county planning officialnew text end .
Subd. 3.
Applicability of restrictions.
new text begin (a) new text end This section does not apply to the exceptions
set forth in section 272.12.
new text begin (b) new text end This section applies only to land within municipalities new text begin or counties new text end which choose to
be governed by its provisions. A municipality new text begin or county new text end may choose to have this section
apply to the property within its boundaries by filing a certified copy of a resolution of its
governing body making that choice with the auditor and recorder of the county in which it
is located.
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 2016, section 273.13, subdivision 34, is amended to read:
Subd. 34.
Homestead of disabled veteran or family caregiver.
(a) All or a portion of
the market value of property owned by a veteran and serving as the veteran's homestead
under this section is excluded in determining the property's taxable market value if the
veteran has a service-connected disability of 70 percent or more as certified by the United
States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the
veteran must have been honorably discharged from the United States armed forces, as
indicated by United States Government Form DD214 or other official military discharge
papers.
(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded,
except as provided in clause (2); and
(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.
(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause
(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds
the legal or beneficial title to the homestead and permanently resides there, the exclusion
shall carry over to the benefit of the veteran's spouse deleted text begin for the current taxes payable year and
for eight additional taxes payable years ordeleted text end until such time as the spouse remarries, or sells,
transfers, or otherwise disposes of the propertydeleted text begin , whichever comes firstdeleted text end . Qualification under
this paragraph requires an annual application under paragraph (h).
(d) If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service-connected cause while serving honorably in active service, as
indicated on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is entitled to the
benefit described in paragraph (b), clause (2), deleted text begin for eight taxes payable years, ordeleted text end until such
time as the spouse remarries or sells, transfers, or otherwise disposes of the propertydeleted text begin ,
whichever comes firstdeleted text end .
(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
for under paragraph (b).
(f) In the case of an agricultural homestead, only the portion of the property consisting
of the house and garage and immediately surrounding one acre of land qualifies for the
valuation exclusion under this subdivision.
(g) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 35, or classification under subdivision 22,
paragraph (b).
(h) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by July 1 of each assessment year, except that an annual reapplication
is not required once a property has been accepted for a valuation exclusion under paragraph
(a) and qualifies for the benefit described in paragraph (b), clause (2), and the property
continues to qualify until there is a change in ownership. For an application received after
July 1 of any calendar year, the exclusion shall become effective for the following assessment
year.
(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.
(j) For purposes of this subdivision:
(1) "active service" has the meaning given in section 190.05;
(2) "own" means that the person's name is present as an owner on the property deed;
(3) "primary family caregiver" means a person who is approved by the secretary of the
United States Department of Veterans Affairs for assistance as the primary provider of
personal care services for an eligible veteran under the Program of Comprehensive Assistance
for Family Caregivers, codified as United States Code, title 38, section 1720G; and
(4) "veteran" has the meaning given the term in section 197.447.
(k) The purpose of this provision of law providing a level of homestead property tax
relief for gravely disabled veterans, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2017.
new text end
Sec. 8.
Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read:
Subdivision 1.
Levy amount.
The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy base amount new text begin for commercial-industrial property new text end is
deleted text begin $592,000,000deleted text end new text begin $762,664,000new text end for taxes payable in deleted text begin 2002deleted text end new text begin 2018. The state general levy base
amount for seasonal-recreational property is $43,111,000 for taxes payable in 2018new text end . For
taxes payable in subsequent years, deleted text begin thedeleted text end new text begin eachnew text end levy base amount is increased each year by
multiplying the levy base amount for the prior year by the sum of one plus the rate of
increase, if any, in the implicit price deflator for government consumption expenditures and
gross investment for state and local governments prepared by the Bureau of Economic
Analysts of the United States Department of Commerce for the 12-month period ending
March 31 of the year prior to the year the taxes are payable. The tax under this section is
not treated as a local tax rate under section 469.177 and is not the levy of a governmental
unit under chapters 276A and 473F.
The commissioner shall increase or decrease the preliminary or final deleted text begin ratedeleted text end new text begin ratesnew text end for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under section
275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
for the same year.
The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end
Sec. 9.
Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read:
Subd. 2.
Commercial-industrial tax capacity.
For the purposes of this section,
"commercial-industrial tax capacity" means the tax capacity of all taxable property classified
as class 3 or class 5(1) under section 273.13, deleted text begin except fordeleted text end new text begin excluding: (1) the first $100,000 of
market value of each parcel of commercial-industrial net tax capacity as defined under
section 273.13, subdivision 24, clauses (1) and (2); (2) new text end electric generation attached machinery
under class 3new text begin ;new text end and new text begin (3) new text end property described in section 473.625. County commercial-industrial
tax capacity amounts are not adjusted for the captured net tax capacity of a tax increment
financing district under section 469.177, subdivision 2, the net tax capacity of transmission
lines deducted from a local government's total net tax capacity under section 273.425, or
fiscal disparities contribution and distribution net tax capacities under chapter 276A or 473F.new text begin
For purposes of this subdivision, the procedures for determining eligibility for tier 1 under
section 273.13, subdivision 24, clauses (1) and (2), shall apply in determining the portion
of a property eligible to be considered within the first $100,000 of market value.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end
Sec. 10.
Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:
Subd. 4.
Apportionment and levy of state general tax.
deleted text begin Ninety-five percent ofdeleted text end The
state general tax must be levied by applying a uniform rate to all commercial-industrial tax
capacity and deleted text begin five percent of the state general tax must be levied by applyingdeleted text end a uniform rate
to all seasonal residential recreational tax capacity. On or before October 1 each year, the
commissioner of revenue shall certify the preliminary state general levy rates to each county
auditor that must be used to prepare the notices of proposed property taxes for taxes payable
in the following year. By January 1 of each year, the commissioner shall certify the final
state general levy deleted text begin ratedeleted text end new text begin ratesnew text end to each county auditor that shall be used in spreading taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end
Sec. 11.
Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:
Subdivision 1.
Proposed levy.
(a) Notwithstanding any law or charter to the contrary,
on or before September 30, each county deleted text begin and eachdeleted text end new text begin ,new text end home rule charter or statutory citynew text begin , and
special taxing district, excluding the Metropolitan Council and the Metropolitan Mosquito
Control District,new text end shall certify to the county auditor the proposed property tax levy for taxes
payable in the following year.new text begin The proposed levy certification date for the Metropolitan
Council shall be as prescribed in sections 473.249 and 473.446. The proposed levy
certification date for the Metropolitan Mosquito Control District shall be as prescribed in
section 473.711.
new text end
(b) Notwithstanding any law or charter to the contrary, on or before September 15, each
town deleted text begin and each special taxing districtdeleted text end new text begin , the Metropolitan Council, and the Metropolitan
Mosquito Control Districtnew text end shall adopt and certify to the county auditor a proposed property
tax levy for taxes payable in the following year. For towns, the final certified levy shall also
be considered the proposed levy.
(c) On or before September 30, each school district that has not mutually agreed with
its home county to extend this date shall certify to the county auditor the proposed property
tax levy for taxes payable in the following year. Each school district that has agreed with
its home county to delay the certification of its proposed property tax levy must certify its
proposed property tax levy for the following year no later than October 7. The school district
shall certify the proposed levy as:
(1) a specific dollar amount by school district fund, broken down between voter-approved
and non-voter-approved levies and between referendum market value and tax capacity
levies; or
(2) the maximum levy limitation certified by the commissioner of education according
to section 126C.48, subdivision 1.
(d) If the board of estimate and taxation or any similar board that establishes maximum
tax levies for taxing jurisdictions within a first class city certifies the maximum property
tax levies for funds under its jurisdiction by charter to the county auditor by the date specified
in paragraph (a), the city shall be deemed to have certified its levies for those taxing
jurisdictions.
(e) For purposes of this section, "special taxing district" means a special taxing district
as defined in section 275.066. Intermediate school districts that levy a tax under chapter
124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and
Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
taxing districts for purposes of this section.
(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
tax levy under this subdivision, the taxing authority shall announce the time and place of
its subsequent regularly scheduled meetings at which the budget and levy will be discussed
and at which the public will be allowed to speak. The time and place of those meetings must
be included in the proceedings or summary of proceedings published in the official newspaper
of the taxing authority under section 123B.09, 375.12, or 412.191.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with proposed levy
certifications for taxes payable in 2018.
new text end
Sec. 12.
Minnesota Statutes 2016, section 275.066, is amended to read:
275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
For the purposes of property taxation and property tax state aids, the term "special taxing
districts" includes the following entities:
(1) watershed districts under chapter 103D;
(2) sanitary districts under sections 442A.01 to 442A.29;
(3) regional sanitary sewer districts under sections 115.61 to 115.67;
(4) regional public library districts under section 134.201;
(5) park districts under chapter 398;
(6) regional railroad authorities under chapter 398A;
(7) hospital districts under sections 447.31 to 447.38;
(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
(10) regional development commissions under sections 462.381 to 462.398;
(11) housing and redevelopment authorities under sections 469.001 to 469.047;
(12) port authorities under sections 469.048 to 469.068;
(13) economic development authorities under sections 469.090 to 469.1081;
(14) Metropolitan Council under sections 473.123 to 473.549;
(15) Metropolitan Airports Commission under sections 473.601 to 473.679;
(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter
437, section 1;
(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections
1 to 6;
(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5,
section 39;
(21) Middle Mississippi River Watershed Management Organization under sections
103B.211 and 103B.241;
(22) emergency medical services special taxing districts under section 144F.01;
(23) a county levying under the authority of section 103B.241, 103B.245, deleted text begin or deleted text end 103B.251new text begin ,
or 103C.331new text end ;
(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
under Laws 2003, First Special Session chapter 21, article 4, section 12;
(25) an airport authority created under section 360.0426; and
(26) any other political subdivision of the state of Minnesota, excluding counties, school
districts, cities, and towns, that has the power to adopt and certify a property tax levy to the
county auditor, as determined by the commissioner of revenue.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2018 and thereafter.
new text end
Sec. 13.
Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read:
Subdivision 1.
Certification of levy.
(a) Except as provided under paragraph (b), the
taxes voted by cities, counties, school districts, and special districts shall be certified by the
proper authorities to the county auditor on or before five working days after December 20
in each year. A town must certify the levy adopted by the town board to the county auditor
by September 15 each year. If the town board modifies the levy at a special town meeting
after September 15, the town board must recertify its levy to the county auditor on or before
five working days after December 20. If a city, town, county, school district, or special
district fails to certify its levy by that date, its levy shall be the amount levied by it for the
preceding year.
(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, deleted text begin and deleted text end 103B.251new text begin ,
and 103C.331new text end shall be separately certified by the county to the county auditor on or before
five working days after December 20 in each year. The taxes certified shall not be reduced
by the county auditor by the aid received under section 273.1398, subdivision 3. If a county
fails to certify its levy by that date, its levy shall be the amount levied by it for the preceding
year.
(ii) For purposes of the proposed property tax notice under section 275.065 and the
property tax statement under section 276.04, for the first year in which the county implements
the provisions of this paragraph, the county auditor shall reduce the county's levy for the
preceding year to reflect any amount levied for water management purposes under clause
(i) included in the county's levy.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2018 and thereafter.
new text end
Sec. 14.
Minnesota Statutes 2016, section 276.11, subdivision 1, is amended to read:
Subdivision 1.
Generally.
As soon as practical after the settlement day determined in
section 276.09, the county treasurer shall pay to the treasurer of a town, city, school district,
or special district, on the warrant of the county auditor, all receipts of taxes levied by the
taxing district and deliver up all orders and other evidences of indebtedness of the taxing
district, taking triplicate receipts for them. The treasurer shall file one of the receipts with
the county auditor, and shall return one by mail on the day of its receipt to the clerk of the
town, city, school district, or special district to which payment was made. The clerk shall
keep the receipt in the clerk's office. Upon written request of the taxing district, to the extent
practicable, the county treasurer shall make partial payments of amounts collected
periodically in advance of the next settlement and distribution. A statement prepared by the
county treasurer must accompany each payment. It must state the years for which taxes
included in the payment were collected and, for each year, the amount of the taxes and any
penalties on the tax. Upon written request of a taxing district, except school districts, the
county treasurer shall pay at least 70 percent of the estimated collection within 30 days after
the settlement date determined in section 276.09. Within deleted text begin sevendeleted text end new text begin eightnew text end business days after
the due date, or 28 calendar days after the postmark date on the envelopes containing real
or personal property tax statements, whichever is latest, the county treasurer shall pay to
the treasurer of the school districts 50 percent of the estimated collections arising from taxes
levied by and belonging to the school district, unless the school district elects to receive 50
percent of the estimated collections arising from taxes levied by and belonging to the school
district after making a proportionate reduction to reflect any loss in collections as the result
of any delay in mailing tax statements. In that case, 50 percent of those adjusted, estimated
collections shall be paid by the county treasurer to the treasurer of the school district within
seven business days of the due date. The remaining 50 percent of the estimated collections
must be paid to the treasurer of the school district within the next seven business days of
the later of the dates in the preceding sentence, unless the school district elects to receive
the remainder of its estimated collections after a proportionate reduction has been made to
reflect any loss in collections as the result of any delay in mailing tax statements. In that
case, the remaining 50 percent of those adjusted, estimated collections shall be paid by the
county treasurer to the treasurer of the school district within 14 days of the due date. The
treasurer shall pay the balance of the amounts collected to a municipal corporation or other
body within 60 days after the settlement date determined in section 276.09. After 45 days
interest at an annual rate of eight percent accrues and must be paid to the taxing district.
Interest must be paid upon appropriation from the general revenue fund of the county. If
not paid, it may be recovered by the taxing district, in a civil action.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for property taxes payable in 2018 and
thereafter.
new text end
Sec. 15.
Minnesota Statutes 2016, section 276.111, is amended to read:
276.111 DISTRIBUTIONS AND FINAL YEAR-END SETTLEMENT.
Within deleted text begin sevendeleted text end new text begin eightnew text end business days after October 15, the county treasurer shall pay to the
school districts 50 percent of the estimated collections arising from taxes levied by and
belonging to the school district from the settlement day determined in section 276.09 to
October 20. The remaining 50 percent of the estimated tax collections must be paid to the
school district within the next seven business days. Within deleted text begin tendeleted text end new text begin 11new text end business days after
November 15, the county treasurer shall pay to the school district 100 percent of the estimated
collections arising from taxes levied by and belonging to the school districts from October
20 to November 20.
Within deleted text begin tendeleted text end new text begin 11new text end business days after November 15, the county treasurer shall pay to each
taxing district, except any school district, 100 percent of the estimated collections arising
from taxes levied by and belonging to each taxing district from the settlement day determined
in section 276.09 to November 20.
On or before January 5, the county treasurer shall make full settlement with the county
auditor of all receipts collected from the settlement day determined in section 276.09 to
December 31. After subtracting any tax distributions that have been made to the taxing
districts in October and November, the treasurer shall pay to each of the taxing districts on
or before January 25, the balance of the tax amounts collected on behalf of each taxing
district. Interest accrues at an annual rate of eight percent and must be paid to the taxing
district if this final settlement amount is not paid by January 25. Interest must be paid upon
appropriation from the general revenue fund of the county. If not paid, it may be recovered
by the taxing district in a civil action.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for property taxes payable in 2018 and
thereafter.
new text end
Sec. 16.
Minnesota Statutes 2016, section 278.12, is amended to read:
278.12 REFUNDS OF OVERPAYMENT.
If upon final determination the petitioner has paid more than the amount so determined
to be due, judgment shall be entered in favor of the petitioner for such excess, and upon
filing a copy thereof with the county auditor the auditor shall forthwith draw a warrant upon
the county treasurer for the payment thereof; provided that, with the consent of the petitioner,
the county auditor may, in lieu of drawing such warrant, issue to the petitioner a certificate
stating the amount of such judgment, which amount may be used to apply upon any taxes
due or to become due new text begin over a prescribed period of yearsnew text end for the taxing district or districts
whose taxes or assessments are reduced, or their successors in the event of a reorganization
or reincorporation of any such taxing district. In the event the auditor shall issue a warrant
for refund or certificates, the amount thereof shall be charged to the state and other taxing
districts in proportion to the amount of their respective taxes included in the levy and deduct
the same in the subsequent distribution of any tax proceeds to the state or such taxing
districts, and upon receiving any such certificate in payment of other taxes, the amount
thereof shall be distributed to the state and other taxing districts in proportion to the amount
of their respective taxes included in the levy; provided that if in the judgment the levy of
one or more of the districts be found to be illegal, to the extent that the tax so levied is
reduced on account of the illegal levies, the amount to be charged back shall be charged to
the districts and the amount thereof deducted from any distributions thereafter made to them.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refunds for overpayment of taxes
payable in 2017 and thereafter.
new text end
Sec. 17.
Minnesota Statutes 2016, section 278.14, subdivision 1, is amended to read:
Subdivision 1.
Applicability.
A county must pay a refund of a mistakenly billed tax as
provided in this section. As used in this section, "mistakenly billed tax" means an amount
of property tax that was billed, to the extent the amount billed exceeds the accurate tax
amount due to a deleted text begin misclassification of the owner's property under section 273.13 or adeleted text end
mathematical error in the calculation of the tax on the owner's property, together with any
penalty or interest paid on that amount. This section applies only to taxes payable in the
current year and the two prior years. As used in this section, "mathematical error" is limited
to an error in:
(1) converting the market value of a property to tax capacity or to a referendum market
value;
(2) application of the tax rate as computed by the auditor under sections 275.08,
subdivisions 1b, 1c, and 1d; 276A.06, subdivisions 4 and 5; and 473F.07, subdivisions 4
and 5, to the property's tax capacity or referendum market value; or
(3) calculation of or eligibility for a credit.
deleted text begin
The remedy provided under this section does not apply to a misclassification under
section 273.13 that is due to the failure of the property owner to apply for the correct
classification as required by law.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective based on property taxes payable in 2017
and thereafter.
new text end
Sec. 18.
Minnesota Statutes 2016, section 279.01, subdivision 1, is amended to read:
Subdivision 1.
Due dates; penalties.
deleted text begin Except as provided in subdivisions 3 to 5, on May
16 or 21 days after the postmark date on the envelope containing the property tax statement,
whichever is later, a penalty accrues and thereafter is charged upon all unpaid taxes on real
estate on the current lists in the hands of the county treasurer. The deleted text end new text begin (a) When the taxes against
any tract or lot exceed $100, one-half of the amount of tax due must be paid prior to May
16, and the remaining one-half must be paid prior to the following October 16. If either tax
amount is unpaid as of its due date, anew text end penalty is new text begin imposed new text end at a rate of two percent on homestead
property deleted text begin until May 31deleted text end and fournew text begin percent on nonhomestead property. If complete payment
has not been made by the first day of the month following either due date, an additional
penalty of twonew text end percent on deleted text begin June 1. The penalty on nonhomestead property is at a rate of four
percent until May 31deleted text end new text begin homestead propertynew text end and deleted text begin eightdeleted text end new text begin fournew text end percent on deleted text begin June 1. This penalty
does not accrue until June 1 of each year, or 21 days after the postmark date on the envelope
containing the property tax statements, whichever is later, on commercial use real property
used for seasonal residential recreational purposes and classified as class 1c or 4c, and on
other commercial use real property classified as class 3a, provided that over 60 percent of
the gross income earned by the enterprise on the class 3a property is earned during the
months of May, June, July, and August. In order for the first half of the tax due on class 3a
property to be paid after May 15 and before June 1, or 21 days after the postmark date on
the envelope containing the property tax statement, whichever is later, without penalty, the
owner of the property must attach an affidavit to the payment attesting to compliance with
the income provision of this subdivisiondeleted text end new text begin nonhomestead property is imposednew text end . Thereafter,
for both homestead and nonhomestead property, on the first day of each new text begin subsequent new text end month
deleted text begin beginning July 1, up to and including October 1 followingdeleted text end new text begin through Decembernew text end , an additional
penalty of one percent for each month accrues and is charged on all such unpaid taxes
provided that deleted text begin if the due date was extended beyond May 15 as the result of any delay in
mailing property tax statements no additional penalty shall accrue if the tax is paid by the
extended due date. If the tax is not paid by the extended due date, then all penalties that
would have accrued if the due date had been May 15 shall be charged. When the taxes
against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or 21
days after the postmark date on the envelope containing the property tax statement, whichever
is later; and, if so paid, no penalty attaches; the remaining one-half may be paid at any time
prior to October 16 following, without penalty; but, if not so paid, then a penalty of two
percent accrues thereon for homestead property and a penalty of four percent on
nonhomestead property. Thereafter, for homestead property, on the first day of November
an additional penalty of four percent accrues and on the first day of December following,
an additional penalty of two percent accrues and is charged on all such unpaid taxes.
Thereafter, for nonhomestead property, on the first day of November and December
following, an additional penalty of four percent for each month accrues and is charged on
all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days after
the postmark date on the envelope containing the property tax statement, whichever is later,
the same may be paid at any time prior to October 16, with accrued penalties to the date of
payment added, and thereupon no penalty attaches to the remaining one-half until October
16 followingdeleted text end new text begin the penalty must not exceed eight percent in the case of homestead property,
or 12 percent in the case of nonhomestead propertynew text end .
new text begin
(b) If the property tax statement was not postmarked prior to April 25, the first half
payment due date in paragraph (a) shall be 21 days from the postmark date of the property
tax statement, and all penalties referenced in paragraph (a) shall be determined with regard
to the later due date.
new text end
new text begin
(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties as
specified in paragraph (a) or (b) for the first half payment shall apply to the entire amount
of the tax due.
new text end
new text begin
(d) For commercial use real property used for seasonal residential recreational purposes
and classified as class 1c or 4c, and on other commercial use real property classified as class
3a, provided that over 60 percent of the gross income earned by the enterprise on the class
3a property is earned during the months of May, June, July, and August, penalty does not
accrue until June 1 of each year. For a class 3a property to qualify for the later due date, the
owner of the property must attach an affidavit to the payment attesting to compliance with
the income requirements of this paragraph.
new text end
new text begin (e) new text end This section applies to payment of personal property taxes assessed against
improvements to leased property, except as provided by section 277.01, subdivision 3.
new text begin (f) new text end A county may provide by resolution that in the case of a property owner that has
multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
installments as provided in this subdivision.
new text begin (g) new text end The county treasurer may accept payments of more or less than the exact amount of
a tax installment due. Payments must be applied first to the oldest installment that is due
but which has not been fully paid. If the accepted payment is less than the amount due,
payments must be applied first to the penalty accrued for the year or the installment being
paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
payment required as a condition for filing an appeal under section 278.03 or any other law,
nor does it affect the order of payment of delinquent taxes under section 280.39.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end
Sec. 19.
Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read:
Subd. 2.
Abatement of penalty.
new text begin (a) new text end The county board may, with the concurrence of the
county treasurer, delegate to the county treasurer the power to abate the penalty provided
for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county
board so elects, the county treasurer may abate the penalty on finding that the imposition
of the penalty would be unjust and unreasonable.
new text begin
(b) The county treasurer shall abate the penalty provided for late payment of taxes in
the current year if the property tax payment is delivered by mail to the county treasurer and
the envelope containing the payment is postmarked by the United States Postal Service
within one business day of the due date prescribed under this section, but only if the property
owner requesting the abatement has not previously received an abatement of penalty for
late payment of tax under this paragraph.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for property taxes payable in 2018 and
thereafter.
new text end
Sec. 20.
Minnesota Statutes 2016, section 279.01, subdivision 3, is amended to read:
Subd. 3.
Agricultural property.
deleted text begin (a)deleted text end In the case of class 1b agricultural homestead, class
2a agricultural homestead property, and class 2a agricultural nonhomestead property, no
penalties shall attach to the second one-half property tax payment as provided in this section
if paid by November 15. Thereafter deleted text begin for class 1b agricultural homestead and class 2a
homestead property, on November 16 following, a penalty of six percent shall accrue and
be charged on all such unpaid taxes and on December 1 following, an additional two percent
shall be charged on all such unpaid taxes. Thereafter for class 2a agricultural nonhomestead
property, on November 16 following, a penalty of eight percent shall accrue and be charged
on all such unpaid taxes and on December 1 following, an additional four percent shall be
charged on all such unpaid taxesdeleted text end new text begin , penalties shall attach as provided in subdivision 1new text end .
If the owner of class 1b agricultural homestead or class 2a agricultural property receives
a consolidated property tax statement that shows only an aggregate of the taxes and special
assessments due on that property and on other property not classified as class 1b agricultural
homestead or class 2a agricultural property, the aggregate tax and special assessments shown
due on the property by the consolidated statement will be due on November 15.
deleted text begin
(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class 2b
property that was subject to a second-half due date of November 15 for taxes payable in
2009, the county shall not impose, or if imposed, shall abate penalty amounts in excess of
those that would apply as if the second-half due date were November 15.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end
Sec. 21.
Minnesota Statutes 2016, section 279.03, subdivision 2, is amended to read:
Subd. 2.
new text begin Rate for new text end composite judgmentnew text begin ; rate for homestead composite judgment,
repurchase of forfeited homestead property, and sale of forfeited propertynew text end .
(a) Except
as provided in paragraph (b), amounts included in composite judgments authorized by
section 279.37, subdivision 1, are subject to interest at the rate calculated under subdivision
1a. During each calendar year, interest shall accrue on the unpaid balance of the composite
judgment from the time it is confessed until it is paid. The interest rate established at the
time the judgment is confessed is fixed for the duration of that judgment.
new text begin
(b) The following amounts are subject to interest as provided in paragraph (c):
new text end
new text begin
(1) amounts included in composite judgments on parcels classified as 1a or 1b and used
as the homestead of the owner;
new text end
new text begin
(2) amounts in contracts for repurchase of property classified as 1a or 1b at the time of
forfeiture or at the time that the repurchase application is approved; and
new text end
new text begin
(3) sales of forfeited property pursuant to section 282.01, subdivision 4.
new text end
deleted text begin
(b) A confession of judgment covering any part of a parcel classified as 1a or 1b, and
used as the homestead of the owner, is subject to interest at the rate provided in section
279.37, subdivision 2, paragraph (b). This paragraph does not apply to a relative homestead
under section 273.124, subdivision 1, paragraph (c).
deleted text end
new text begin
(c) By October 15 each year the commissioner shall set the interest rate under this
subdivision at the greater of five percent or two percent above the prime rate charged by
banks during the six-month period ending on September 30 of that year, rounded to the
nearest full percent, provided that the rate must not exceed the maximum annum rate specified
under section 279.03, subdivision 1a. By November 1 of each year the commissioner must
certify the rate to the county auditor. The rate of interest becomes effective on January 1 of
the immediately succeeding year. The commissioner's determination under this subdivision
is not a rule subject to the Administrative Procedure Act in chapter 14, including section
14.386.
new text end
new text begin
(d) For the purposes of this subdivision, "prime rate charged by banks" means the average
predominant prime rate quoted by commercial banks to large businesses, as determined by
the Board of Governors of the Federal Reserve System.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for composite judgments, repurchase
contracts, and sales of forfeited property occurring after July 1, 2018.
new text end
Sec. 22.
Minnesota Statutes 2016, section 279.37, subdivision 2, is amended to read:
Subd. 2.
Installment payments.
(a) The owner of any such parcel, or any person to
whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
make and file with the county auditor of the county in which the parcel is located a written
offer to pay the current taxes each year before they become delinquent, or to contest the
taxes under chapter 278 and agree to confess judgment for the amount provided, as
determined by the county auditor. By filing the offer, the owner waives all irregularities in
connection with the tax proceedings affecting the parcel and any defense or objection which
the owner may have to the proceedings, and also waives the requirements of any notice of
default in the payment of any installment or interest to become due pursuant to the composite
judgment to be so entered. Unless the property is subject to subdivision 1a, with the offer,
the owner shall (i) tender one-tenth of the amount of the delinquent taxes, costs, penalty,
and interest, and (ii) tender all current year taxes and penalty due at the time the confession
of judgment is entered. In the offer, the owner shall agree to pay the balance in nine equal
installments, with interest as provided in section 279.03, payable annually on installments
remaining unpaid from time to time, on or before December 31 of each year following the
year in which judgment was confessed.
(b) deleted text begin For property which qualifies under section 279.03, subdivision 2, paragraph (b), each
year the commissioner shall set the interest rate for offers made under paragraph (a) at the
greater of five percent or two percent above the prime rate charged by banks during the
six-month period ending on September 30 of that year, rounded to the nearest full percent,
provided that the rate must not exceed the maximum annum rate specified under section
279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the immediately
succeeding year. The commissioner's determination under this subdivision is not a rule
subject to the Administrative Procedure Act in chapter 14, including section 14.386. If a
default occurs in the payments under any confessed judgment entered under this paragraph,
the taxes and penalties due are subject to the interest rate specified in section 279.03.deleted text end new text begin
Amounts entered in judgment bear interest at the rate provided in section 279.03, subdivision
1a, unless the parcel is classified as 1a or 1b, and is used as the homestead of the owner, in
which case the rate provided in section 279.03, subdivision 2, shall apply. A parcel that is
classified as relative homestead under section 273.124, subdivision 1, paragraph (c), is
subject to interest at the rate provided in section 279.03, subdivision 1a.
new text end
new text begin
(c) Interest shall commence with the date the judgment is entered. During each calendar
year, interest shall accrue on the unpaid balance of the composite judgment from the time
it is confessed until it is paid. The interest rate established at the time the judgment is
confessed is fixed for the duration of that judgment.
new text end
new text begin (d) If a default occurs in the payments under any confessed judgment, the taxes and
penalties due are subject to the interest rate specified in section 279.03, subdivision 1a,
regardless of the classification of the parcel. new text end For the purposes of this subdivisiondeleted text begin :
deleted text end
deleted text begin
(1) the term "prime rate charged by banks" means the average predominant prime rate
quoted by commercial banks to large businesses, as determined by the Board of Governors
of the Federal Reserve System; and
deleted text end
deleted text begin (2)deleted text end "default" means the cancellation of the confession of judgment due to nonpayment
of the current year tax or failure to make any installment payment required by this confessed
judgment within 60 days from the date on which payment was due.
deleted text begin
(c) The interest rate established at the time judgment is confessed is fixed for the duration
of the judgment. By October 15 of each year, the commissioner of revenue must determine
the rate of interest as provided under paragraph (b) and, by November 1 of each year, must
certify the rate to the county auditor.
deleted text end
deleted text begin (d)deleted text end new text begin (e)new text end A qualified property owner eligible to enter into a second confession of judgment
may do so at the interest rate provided in paragraph (b).
deleted text begin
(e) Repurchase agreements or contracts for repurchase for properties being repurchased
under section 282.261 are not eligible to receive the interest rate under paragraph (b).
deleted text end
(f) The offer must be substantially as follows:
"To the court administrator of the district court of ........... county, I, ....................., am
the owner of the following described parcel of real estate located in .................... county,
Minnesota:
.............................. Upon that real estate there are delinquent taxes for the year ........., and
prior years, as follows: (here insert year of delinquency and the total amount of delinquent
taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
any defense or objection which I may have to them, and direct judgment to be entered for
the amount stated above, minus the sum of $............, to be paid with this document, which
is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
I agree to pay the balance of the judgment in nine or four equal, annual installments, with
interest as provided in section 279.03, payable annually, on the installments remaining
unpaid. I agree to pay the installments and interest on or before December 31 of each year
following the year in which this judgment is confessed and current taxes each year before
they become delinquent, or within 30 days after the entry of final judgment in proceedings
to contest the taxes under chapter 278.
Dated .............., ......."
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and repurchases occurring after
January 1, 2018.
new text end
Sec. 23.
Minnesota Statutes 2016, section 282.01, subdivision 4, is amended to read:
Subd. 4.
Sale: method, requirements, effects.
The sale authorized under subdivision
3 must be conducted by the county auditor at the county seat of the county in which the
parcels lie, except that in St. Louis and Koochiching Counties, the sale may be conducted
in any county facility within the county. The sale must not be for less than the appraised
value except as provided in subdivision 7a. The parcels must be sold for cash only, unless
the county board of the county has adopted a resolution providing for their sale on terms,
in which event the resolution controls with respect to the sale. When the sale is made on
terms other than for cash only (1) a payment of at least ten percent of the purchase price
must be made at the time of purchase, and the balance must be paid in no more than ten
equal annual installments, or (2) the payments must be made in accordance with county
board policy, but in no event may the board require more than 12 installments annually,
and the contract term must not be for more than ten years. Standing timber or timber products
must not be removed from these lands until an amount equal to the appraised value of all
standing timber or timber products on the lands at the time of purchase has been paid by
the purchaser. If a parcel of land bearing standing timber or timber products is sold at public
auction for more than the appraised value, the amount bid in excess of the appraised value
must be allocated between the land and the timber in proportion to their respective appraised
values. In that case, standing timber or timber products must not be removed from the land
until the amount of the excess bid allocated to timber or timber products has been paid in
addition to the appraised value of the land. The purchaser is entitled to immediate possession,
subject to the provisions of any existing valid lease made in behalf of the state.
deleted text begin For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price is
subject to interest at the rate determined pursuant to section 549.09.deleted text end The unpaid balance of
the purchase price deleted text begin for sales occurring after December 31, 1990,deleted text end is subject to interest at the
rate deleted text begin determineddeleted text end new text begin providednew text end in section 279.03, subdivision deleted text begin 1adeleted text end new text begin 2, paragraph (c)new text end . deleted text begin The interest
rate is subject to change each year on the unpaid balance in the manner provided for rate
changes in section 549.09 or 279.03, subdivision 1a, whichever, is applicable. Interest on
the unpaid contract balance on sales occurring before July 1, 1982, is payable at the rate
applicable to the sale at the time that the sale occurred.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales occurring after January 1, 2018.
new text end
Sec. 24.
Minnesota Statutes 2016, section 282.261, subdivision 2, is amended to read:
Subd. 2.
Interest rate.
The unpaid balance on any repurchase contract approved by the
county boardnew text begin for property classified as 1a or 1b and used as the homestead of the owner at
the time of forfeiture or at the time that the repurchase application is approvednew text end is subject to
interest at the rate determined in section 279.03, subdivision deleted text begin 1adeleted text end new text begin 2new text end . deleted text begin The interest rate is subject
to change each year on the unpaid balance in the manner provided for rate changes in section
279.03, subdivision 1a.deleted text end new text begin The unpaid balance on any other repurchase contract approved by
the county board is subject to interest at the rate determined in section 279.03, subdivision
1a, which is subject to change each year in the manner provided for in section 279.03,
subdivision 1a.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for repurchases occurring after January
1, 2018.
new text end
Sec. 25.
Minnesota Statutes 2016, section 473H.09, is amended to read:
473H.09 EARLY TERMINATION.
new text begin Subdivision 1. new text end
new text begin Public emergency. new text end
Termination of an agricultural preserve earlier than
a date derived through application of section 473H.08 may be permitted deleted text begin onlydeleted text end in the event
of a public emergency upon petition from the owner or authority to the governor. The
determination of a public emergency shall be by the governor through executive order
pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the preserve,
the reasons requiring the action and the date of termination.
new text begin Subd. 2. new text end
new text begin Death of owner. new text end
new text begin
(a) Within 180 days of the death of an owner, an owner's
spouse, or other qualifying person, the surviving owner may elect to terminate the agricultural
preserve and the covenant allowing the land to be enrolled as an agricultural preserve by
notifying the authority on a form provided by the commissioner of agriculture. Termination
of a covenant under this subdivision must be executed and acknowledged in the manner
required by law to execute and acknowledge a deed.
new text end
new text begin
(b) For purposes of this subdivision, the following definitions apply:
new text end
new text begin
(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent
was the settlor or a beneficiary of, or member of an entity permitted to own agricultural
land and engage in farming under section 500.24 that owned the agricultural preserve; and
new text end
new text begin
(2) "surviving owner" includes the executor of the estate of the decedent, the trustee for
a trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own
farm land under section 500.24 of which the decedent was a partner, shareholder, or member.
new text end
new text begin
(c) When an agricultural preserve is terminated under this subdivision, the property is
subject to additional taxes in an amount equal to 50 percent of the taxes actually levied
against the property for the current taxes payable year. The additional taxes are extended
against the property on the tax list for taxes payable in the current year. The additional taxes
must be distributed among the jurisdictions levying taxes on the property in proportion to
the current year's taxes.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from July 1, 2016.
new text end
Sec. 26.
Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, article
6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154, article
2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read:
Sec. 3. TAX; PAYMENT OF EXPENSES.
(a) The tax levied by the hospital district under Minnesota Statutes, section 447.34, must
not be levied at a rate that exceeds the amount authorized to be levied under that section.
The proceeds of the tax may be used for all purposes of the hospital district, except as
provided in paragraph (b).
(b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by the
Cook ambulance service and the Orr ambulance service for the purpose of:
(1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance
service;
(2) attached and portable equipment for use in and for the ambulances; and
(3) parts and replacement parts for maintenance and repair of the ambulancesnew text begin , and
administrative, operation, or salary expenses for the Cook ambulance service and the Orr
ambulance servicenew text end .
deleted text begin
The money may not be used for administrative, operation, or salary expenses.
deleted text end
(c) The part of the levy referred to in paragraph (b) must be administered by the Cook
Hospital and passed on in equal amounts directly to the Cook area ambulance service board
and the city of Orr to be used for the purposes in 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. 27.
Laws 1996, chapter 471, article 3, section 51, is amended to read:
Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.
deleted text begin Subdivision 1. deleted text end
deleted text begin Levy authorized. deleted text end
Notwithstanding other law to the contrary, the Carlton
county board of commissioners may levy in and for the unorganized township of Sawyer
an amount up to deleted text begin $1,500deleted text end new text begin $2,000new text end annually for recreational purposesdeleted text begin , beginning with taxes
payable in 1997 and ending with taxes payable in 2006deleted text end .
deleted text begin Subd. 2. deleted text end
deleted text begin Effective date. deleted text end
deleted text begin
This section is effective June 1, 1996, without local approval.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the Carlton County Board
of Commissioners and its chief clerical officer comply with section 645.021, subdivisions
2 and 3, and applies to taxes payable in 2018.
new text end
Sec. 28.
Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by Laws
2013, chapter 143, article 4, section 36, is amended to read:
Subdivision 1.
Agreement.
The city of Cloquet and Perch Lake Township, by resolution
of each of their governing bodies, may establish the Cloquet Area Fire and Ambulance
new text begin Special new text end Taxing District for the purpose of providing fire or ambulance services, or both,
throughout the district. In this section, "municipality" means home rule charter and statutory
cities, towns, and Indian tribes. The district may exercise all the powers relating to fire and
ambulance services of the municipalities that receive fire or ambulance services, or both,
from the district. Upon application, any other municipality may join the district with the
agreement of the municipalities that comprise the district at the time of its application to
join.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
new text end
Sec. 29.
Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:
Subd. 2.
Board.
The Cloquet Area Fire and Ambulance new text begin Special new text end Taxing District Board
is governed by a board made up initially of one or more elected officials of the governing
body of each participating municipality in the proportions set out in the establishing
resolution, subject to change as provided in the district's charter, if any, or in the district's
bylaws. Each municipality's representatives serve at the pleasure of that municipality's
governing body.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
new text end
Sec. 30.
Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by Laws
2013, chapter 143, article 4, section 37, is amended to read:
Subd. 3.
Tax.
new text begin (a) new text end The district board may impose a property tax on taxable property as
provided in this subdivisionnew text begin to pay the costs of providing fire or ambulance services, or
both, throughout the districtnew text end . The board shall annually determine the total amount of the
levy that is attributable to the cost of providing fire services and the cost of providing
ambulance services within the primary service area. For those municipalities that only
receive ambulance services, the costs for the provision of ambulance services shall be levied
against taxable property within those municipalities at a rate necessary not to exceed 0.019
percent of the estimated market value. For those municipalities that receive both fire and
ambulance services, the tax shall be imposed at a rate that does not exceed 0.2835 percent
of estimated market value.
new text begin (b) new text end When a member municipality opts to receive fire service from the district or an
additional municipality becomes a member of the district, the cost of providing fire services
to that community shall be determined by the board and added to the maximum levy amount.
new text begin (c) new text end Each county auditor of a county that contains a municipality subject to the tax under
this section must collect the tax and pay it to the Fire and Ambulance Special Taxing District.
The district may also impose other fees or charges as allowed by law for the provision of
fire and ambulance services.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
new text end
Sec. 31.
Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:
Subd. 4.
Public indebtedness.
new text begin (a) new text end The district may incur debt in the manner provided
for a municipality by Minnesota Statutes, chapter 475, new text begin and may issue certificates of
indebtedness or capital notes in the manner provided for a city by Minnesota Statutes, section
412.301, new text end when necessary to accomplish its dutiesnew text begin , except that the district may not incur debt
or issue obligations until first obtaining the approval of a majority of the electors voting on
the question of issuing the obligation. The debt service for debt used to finance capital costs
for ambulance service shall be levied against taxable property within the municipalities in
the primary service area. The debt service for debt used to finance capital costs for fire
service shall be levied against taxable property within municipalities receiving fire services.
The district board shall pledge its full faith and credit and taxing power without limitation
as to rate or amount for the payment of the district's debtnew text end .
new text begin
(b) For purposes of this subdivision, "municipality" has the definition given in Minnesota
Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph (c).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
new text end
Sec. 32.
Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:
Subd. 5.
Withdrawal.
Notice of intent to withdraw from participation in the district
may be given only in the month of January, with a minimum of twelve months notice of
intent to withdraw. Withdrawal becomes effective for taxes levied new text begin pursuant to subdivision
3 new text end in the year when the notice is given. new text begin A property tax on taxable property located in a
withdrawing municipality that has been levied by the district pursuant to subdivision 4
remains in effect until the obligations outstanding on the date of withdrawal are satisfied,
including any property tax levied in connection with refunding such obligations. new text end The district
and its members may new text begin also new text end develop and agree upon new text begin other new text end continuing obligations after
withdrawal of a municipality.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
new text end
Sec. 33. new text begin 2016 TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE
WAIVER.
new text end
new text begin
If a city or town that conducts local board of appeal and equalization meetings certified
by February 1, 2016, that it was in compliance with the requirements of Minnesota Statutes,
section 274.014, subdivision 2, but no member of the local board who has attended an appeal
and equalization course training within the preceding four years attended the local board's
meeting for 2016, that local board shall have its powers reinstated for the 2017 assessment
by resolution of the governing body of the city or town, and by certifying it is in compliance
with the requirements of Minnesota Statutes, section 274.014, subdivision 2. The resolution
and certification must be provided to the county assessor by February 1, 2017.
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. 34. new text begin TOWN OF TOFTE; MUNICIPAL HOUSING.
new text end
new text begin
(a) Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988, chapter
719, article 19, section 27, the town of Tofte may own and operate within its boundary up
to 12 units of housing for individuals over 55 years of age or families with one member of
the household that is over 55 years of age, or projects that provide housing for individuals
or families with incomes not greater than 120 percent of the median family income, as
estimated by the United States Department of Housing and Urban Development for the
nonmetropolitan county in which the town of Tofte is located.
new text end
new text begin
(b) The town of Tofte shall have the powers of a city under Minnesota Statutes, chapter
462C, and the powers of an authority under Minnesota Statutes, sections 469.001 to 469.047,
with respect to this section. Upon the approval of the town board, the town of Tofte may
levy the tax described in Minnesota Statutes, section 469.033, subdivision 6.
new text end
new text begin
(c) Nothing in this section shall limit the power of the Cook County/Grand Marais Joint
Economic Development Authority to exercise jurisdiction within the town of Tofte. The
authority to undertake new projects under this section shall expire on June 30, 2018.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after compliance by the governing
body of the town of Tofte with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 35. new text begin SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL
ASSESSMENT.
new text end
new text begin
Any real or personal property acquired, owned, leased, controlled, used, or occupied by
the city of St. Paul for the primary purpose of providing a stadium for a Major League
Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for
public, governmental, and municipal purposes, and is exempt from ad valorem taxation by
the state or any political subdivision of the state, provided that the properties are subject to
special assessments levied by a political subdivision for a local improvement in amounts
proportionate to and not exceeding the special benefit received by the properties from the
improvement. In determining the special benefit received by the properties, no possible use
of any of the properties in any manner different from their intended use for providing a
Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota
Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a
lease or use agreement between the city and another person for uses related to the purposes
of the operation of the stadium and related parking facilities is exempt from taxation
regardless of the length of the lease or use agreement. This section, insofar as it provides
an exemption or special treatment, does not apply to any real property that is leased for
residential, business, or commercial development or other purposes different from those
necessary to the provision and operation of the stadium.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon approval by the St. Paul City
Council and compliance with Minnesota Statutes, section 645.021.
new text end
Sec. 36. new text begin OPTIONAL CANCELLATION OF TAX FORFEITURE FOR CERTAIN
BUILDINGS; ST. LOUIS COUNTY.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Building PIN" means a parcel identification number that is assigned to a building
and does not include the land upon which the building is located; and
new text end
new text begin
(c) "Land PIN" means a parcel identification number that is assigned to land upon which
a building associated with a building PIN is located.
new text end
new text begin Subd. 2. new text end
new text begin
Optional cancellation of tax forfeiture for buildings with building PINs.
new text end
new text begin
Notwithstanding any law to the contrary, if any building associated with a building PIN and
located in St. Louis County forfeits or has forfeited to the state of Minnesota before, on, or
after the date of enactment of this section because of nonpayment of delinquent property
taxes, special assessments, penalties, interest, or costs, the county auditor of St. Louis County
may, with approval from the county board and the commissioner of revenue:
new text end
new text begin
(1) cancel the certificate of forfeiture and set aside the forfeiture without reinstating the
unpaid property taxes, special assessments, penalties, interest, or costs; and
new text end
new text begin
(2) combine the building PIN with its associated land PIN. When this occurs, the land
PIN is the only surviving parcel identification number, and includes both the building and
the land upon which the building is located.
new text end
new text begin Subd. 3. new text end
new text begin
Cancellation of tax forfeiture; taxation through date of cancellation.
new text end
new text begin
Notwithstanding any law to the contrary, if the county auditor of St. Louis County cancels
a certificate of forfeiture and sets aside a forfeiture in accordance with subdivision 2, the
affected building is not subject to taxation from the date of forfeiture through the date of
cancellation.
new text end
new text begin Subd. 4. new text end
new text begin Appropriation. new text end
new text begin
$1,000,000 in fiscal year 2017 only is appropriated from the
general fund to the commissioner of revenue for a grant to St. Louis County that shall be
paid on March 31, 2017. The county may only use the grant to remove any building, upon
the request of the landowner, after the county has complied with the provisions of subdivision
2.
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. 37. new text begin LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Abatements authorized. new text end
new text begin
(a) Notwithstanding Minnesota Statutes, section
375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may grant an
abatement of local property taxes for taxes payable in 2016 provided that:
new text end
new text begin
(1) the property is classified as 1c, 3a (excluding utility real and personal property),
4c(1), 4c(10), or 4c(11);
new text end
new text begin
(2) on or before June 1, 2017, the taxpayer submits a written application to the county
assessor in the county in which abatement is sought; and
new text end
new text begin
(3) the taxpayer meets qualification requirements established in subdivision 3.
new text end
new text begin Subd. 2. new text end
new text begin Appeals. new text end
new text begin
An appeal may not be taken to the Tax Court from any order of the
county board made pursuant to the exercise of the discretionary authority granted in this
section.
new text end
new text begin Subd. 3. new text end
new text begin Qualification requirements. new text end
new text begin
To qualify for abatements under this section, a
taxpayer must:
new text end
new text begin
(1) be located within one of the following municipalities surrounding Lake Mille Lacs:
new text end
new text begin
(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of
Roosevelt;
new text end
new text begin
(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of
Malmo, or township of Lakeside; or
new text end
new text begin
(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of
East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
new text end
new text begin
(2) document a reduction in gross receipts of five percent or greater between two
successive calendar years beginning in 2010 or later; and
new text end
new text begin
(3) be a business in one of the following industries, as defined within the North American
Industry Classification System: accommodation, restaurants, bars, amusement and recreation,
food and beverages retail, sporting goods, miscellaneous retail, general retail, museums,
historical sites, health and personal care, gas station, general merchandise, business and
professional membership, movies, or nonstore retailer, as determined by the county in
consultation with the commissioner of employment and economic development.
new text end
new text begin Subd. 4. new text end
new text begin State general levy in relief area. new text end
new text begin
The counties of Aitkin, Crow Wing, and
Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a
(excluding utility real and personal property), or 4c(1) that is located in the area described
by subdivision 3, clause (1), for taxes payable in 2016. No refund may be issued to a taxpayer
whose property taxes are delinquent.
new text end
new text begin Subd. 5. new text end
new text begin Certification and transfer of funds. new text end
new text begin
(a) By August 1, 2017, a county granting
a refund as required under subdivision 4 must certify the total amount of state general tax
refunded to Mille Lacs County and the commissioner of revenue. By May 1, 2017, Mille
Lacs County must transfer an amount equal to the amount certified under this paragraph to
the county making the certification.
new text end
new text begin
(b) By August 1, 2017, a county that has received an application for an abatement
authorized under subdivision 1 must certify to Mille Lacs County the total amount of
abatements for which applications have been received and approved. By September 1, 2017,
Mille Lacs County must transfer an amount equal to the amount certified under this paragraph
to the county making the certification. If the amount appropriated under subdivision 6,
minus the amount transferred under paragraph (a), is not sufficient to make the transfer
required under this paragraph, Mille Lacs County must reduce the amount transferred to
each county by a uniform percentage. By October 31, 2017, the county must issue refunds
of local property tax amounts to qualified properties, in proportion to the amount received
from Mille Lacs County. No refund may be issued to a taxpayer whose property taxes are
delinquent.
new text end
new text begin
(c) By December 1, 2017, Mille Lacs County must calculate the amount transferred
under paragraphs (a) and (b), and subtract that amount from $1,400,000 to obtain the ongoing
economic relief distribution amount, if any. This amount must be transferred to the counties
of Aitkin, Crow Wing, and Mille Lacs in proportion to the amounts certified by each county
under paragraphs (a) and (b). A county receiving a transfer under this paragraph must use
the funds received to provide abatements to business properties under economic hardship
for taxes payable in 2017, and each year thereafter until a county's share of the ongoing
economic relief distribution amount is exhausted.
new text end
new text begin Subd. 6. new text end
new text begin Commissioner of revenue; appropriation. new text end
new text begin
$1,400,000 in fiscal year 2018 is
appropriated from the general fund to the commissioner of revenue for transfer to Mille
Lacs County to make the transfers required under subdivision 5. This is a onetime
appropriation.
new text end
new text begin Subd. 7. new text end
new text begin Report to legislature. new text end
new text begin
The commissioner of revenue must make a written report
to the chairs and ranking minority members of the legislative committees with jurisdiction
over taxes stating the amount of abatements and refunds given under this section by taxing
jurisdictions by February 1, 2018. The counties must provide the commissioner with the
information necessary to make the report.
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. 38. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2016, section 272.02, subdivision 23,
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 for taxes payable in 2017 and thereafter.
new text end
ARTICLE 2
AIDS AND CREDITS
Section 1.
Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read:
Subd. 10.
Payments to school nonoperating funds.
Each fiscal year state general fund
payments for a district nonoperating fund must be made at the current year aid payment
percentage of the estimated entitlement during the fiscal year of the entitlement. This amount
shall be paid in deleted text begin 12deleted text end new text begin sixnew text end equal monthly installmentsnew text begin beginning in Julynew text end . The amount of the
actual entitlement, after adjustment for actual data, minus the payments made during the
fiscal year of the entitlement must be paid prior to October 31 of the following school year.
The commissioner may make advance payments of debt service equalization aid and
state-paid tax credits for a district's debt service fund earlier than would occur under the
preceding schedule if the district submits evidence showing a serious cash flow problem in
the fund. The commissioner may make earlier payments during the year and, if necessary,
increase the percent of the entitlement paid to reduce the cash flow problem.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with fiscal year 2019.
new text end
Sec. 2.
Minnesota Statutes 2016, section 127A.45, subdivision 13, is amended to read:
Subd. 13.
Aid payment percentage.
Except as provided in subdivisions new text begin 10, new text end 11, 12, 12a,
and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
120B, 121A, 122A, 123A, 123B, 124D, 124E, 125A, 125B, 126C, 134, and section 273.1392,
shall be paid at the current year aid payment percentage of the estimated entitlement during
the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated
entitlement for special education aid under section 125A.76 for fiscal year 2014 and later
equals 97.4 percent of the district's entitlement for the current fiscal year. The final adjustment
payment, according to subdivision 9, must be the amount of the actual entitlement, after
adjustment for actual data, minus the payments made during the fiscal year of the entitlement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with fiscal year 2019.
new text end
Sec. 3.
new text begin
[273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.
new text end
new text begin Subdivision 1. new text end
new text begin Eligibility. new text end
new text begin
All class 2a, 2b, and 2c property under section 273.13,
subdivision 23, other than property consisting of the house, garage, and immediately
surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
under this section.
new text end
new text begin Subd. 2. new text end
new text begin Credit amount. new text end
new text begin
For each qualifying property, the school building bond
agricultural credit is equal to 40 percent of the property's eligible net tax capacity multiplied
by the school debt tax rate determined under section 275.08, subdivision 1b.
new text end
new text begin Subd. 3. new text end
new text begin Credit reimbursements. new text end
new text begin
The county auditor shall determine the tax reductions
allowed under this section within the county for each taxes payable year and shall certify
that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted
under section 275.29. Any prior year adjustments shall also be certified on the abstracts of
tax lists. The commissioner shall review the certifications for accuracy, and may make such
changes as are deemed necessary, or return the certification to the county auditor for
correction. The credit under this section must be used to reduce the school district net tax
capacity-based property tax as provided in section 273.1393.
new text end
new text begin Subd. 4. new text end
new text begin Payment. new text end
new text begin
The commissioner of revenue shall certify the total of the tax
reductions granted under this section for each taxes payable year within each school district
to the commissioner of education, who shall pay the reimbursement amounts to each school
district as provided in section 273.1392.
new text end
new text begin Subd. 5. new text end
new text begin Appropriation. new text end
new text begin
An amount sufficient to make the payments required by this
section is annually appropriated from the general fund to the commissioner of education.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end
Sec. 4.
Minnesota Statutes 2016, section 273.1392, is amended to read:
273.1392 PAYMENT; SCHOOL DISTRICTS.
The amounts of bovine tuberculosis credit reimbursements under section 273.113;
conservation tax credits under section 273.119; disaster or emergency reimbursement under
sections 273.1231 to 273.1235; deleted text begin homestead anddeleted text end agricultural credits under deleted text begin section deleted text end new text begin sectionsnew text end
273.1384new text begin and 273.1387new text end ; aids and credits under section 273.1398; enterprise zone property
credit payments under section 469.171; and metropolitan agricultural preserve reduction
under section 473H.10 for school districts, shall be certified to the Department of Education
by the Department of Revenue. The amounts so certified shall be paid according to section
127A.45, subdivisions 9 and 13.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end
Sec. 5.
Minnesota Statutes 2016, section 273.1393, is amended to read:
273.1393 COMPUTATION OF NET PROPERTY TAXES.
Notwithstanding any other provisions to the contrary, "net" property taxes are determined
by subtracting the credits in the order listed from the gross tax:
(1) disaster credit as provided in sections 273.1231 to 273.1235;
(2) powerline credit as provided in section 273.42;
(3) agricultural preserves credit as provided in section 473H.10;
(4) enterprise zone credit as provided in section 469.171;
(5) disparity reduction credit;
(6) conservation tax credit as provided in section 273.119;
(7) new text begin the school bond credit, as provided in section 273.1387;
new text end
new text begin (8) new text end agricultural credit as provided in section 273.1384;
deleted text begin (8)deleted text end new text begin (9)new text end taconite homestead credit as provided in section 273.135;
deleted text begin (9)deleted text end new text begin (10)new text end supplemental homestead credit as provided in section 273.1391; and
deleted text begin (10)deleted text end new text begin (11)new text end the bovine tuberculosis zone credit, as provided in section 273.113.
The combination of all property tax credits must not exceed the gross tax amount.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end
Sec. 6.
Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:
Subd. 3.
Notice of proposed property taxes.
(a) The county auditor shall prepare and
the county treasurer shall deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed on the county's current year's
assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
the treasurer may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail.
(b) The commissioner of revenue shall prescribe the form of the notice.
(c) The notice must inform taxpayers that it contains the amount of property taxes each
taxing authority proposes to collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax amount will be its proposed tax.
The notice must clearly state for each city that has a population over 500, county, school
district, regional library authority established under section 134.201, and metropolitan taxing
districts as defined in paragraph (i), the time and place of a meeting for each taxing authority
in which the budget and levy will be discussed and public input allowed, prior to the final
budget and levy determination. The taxing authorities must provide the county auditor with
the information to be included in the notice on or before the time it certifies its proposed
levy under subdivision 1. The public must be allowed to speak at that meeting, which must
occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
number for the taxing authority that taxpayers may call if they have questions related to the
notice and an address where comments will be received by mail, except that no notice
required under this section shall be interpreted as requiring the printing of a personal
telephone number or address as the contact information for a taxing authority. If a taxing
authority does not maintain public offices where telephone calls can be received by the
authority, the authority may inform the county of the lack of a public telephone number and
the county shall not list a telephone number for that taxing authority.
(d) The notice must state for each parcel:
(1) the market value of the property as determined under section 273.11, and used for
computing property taxes payable in the following year and for taxes payable in the current
year as each appears in the records of the county assessor on November 1 of the current
year; and, in the case of residential property, whether the property is classified as homestead
or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
values apply and that the values are final values;
(2) the items listed below, shown separately by county, city or town, and state general
tax, agricultural homestead credit under section 273.1384, new text begin school building bond agricultural
credit under section 273.1387, new text end voter approved school levy, other local school levy, and the
sum of the special taxing districts, and as a total of all taxing authorities:
(i) the actual tax for taxes payable in the current year; and
(ii) the proposed tax amount.
If the county levy under clause (2) includes an amount for a lake improvement district
as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy amount.
In the case of a town or the state general tax, the final tax shall also be its proposed tax
unless the town changes its levy at a special town meeting under section 365.52. If a school
district has certified under section 126C.17, subdivision 9, that a referendum will be held
in the school district at the November general election, the county auditor must note next
to the school district's proposed amount that a referendum is pending and that, if approved
by the voters, the tax amount may be higher than shown on the notice. In the case of the
city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
the St. Paul Library Agency must be listed separately from the remaining amount of the
city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
listed separately from the remaining amount of the county's levy. In the case of a parcel
where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated separately and not included in the
sum of the special taxing districts; and
(3) the increase or decrease between the total taxes payable in the current year and the
total proposed taxes, expressed as a percentage.
For purposes of this section, the amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount.
(e) The notice must clearly state that the proposed or final taxes do not include the
following:
(1) special assessments;
(2) levies approved by the voters after the date the proposed taxes are certified, including
bond referenda and school district levy referenda;
(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
in November of the levy year as provided under section 275.73;
(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
after the date the proposed taxes are certified;
(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and
(6) the contamination tax imposed on properties which received market value reductions
for contamination.
(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.
(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:
(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
or lessee; or
(2) post a copy of the notice in a conspicuous place on the premises of the property.
The notice must be mailed or posted by the taxpayer by November 27 or within three
days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
notice must be mailed in order to fulfill the requirements of this paragraph.
(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
districts" means the following taxing districts in the seven-county metropolitan area that
levy a property tax for any of the specified purposes listed below:
(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
473.521, 473.547, or 473.834;
(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
(3) Metropolitan Mosquito Control Commission under section 473.711.
For purposes of this section, any levies made by the regional rail authorities in the county
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be included with the appropriate county's levy.
(j) The governing body of a county, city, or school district may, with the consent of the
county board, include supplemental information with the statement of proposed property
taxes about the impact of state aid increases or decreases on property tax increases or
decreases and on the level of services provided in the affected jurisdiction. This supplemental
information may include information for the following year, the current year, and for as
many consecutive preceding years as deemed appropriate by the governing body of the
county, city, or school district. It may include only information regarding:
(1) the impact of inflation as measured by the implicit price deflator for state and local
government purchases;
(2) population growth and decline;
(3) state or federal government action; and
(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.
The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end
Sec. 7.
Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read:
Subd. 2.
School district deleted text begin in more than one countydeleted text end new text begin levies; special requirementsnew text end .
new text begin (a) new text end In
school districts lying in more than one county, the clerk shall certify the tax levied to the
auditor of the county in which the administrative offices of the school district are located.
new text begin
(b) The district must identify the portion of the school district levy that is levied for debt
service at the time the levy is certified under this section. For the purposes of this paragraph,
"levied for debt service" means levies authorized under sections 123B.53, 123B.535, and
123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions
under section 475.61, subdivision 4, excluding debt service amounts necessary for repayment
of other postemployment benefits under section 475.52, subdivision 6.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end
Sec. 8.
Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:
Subd. 1b.
Computation of tax rates.
new text begin (a) new text end The amounts certified to be levied against net
tax capacity under section 275.07 by an individual local government unit shall be divided
by the total net tax capacity of all taxable properties within the local government unit's
taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by
each property's net tax capacity shall be each property's net tax capacity tax for that local
government unit before reduction by any credits.
new text begin
(b) The auditor must also determine the school debt tax rate for each school district equal
to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by
(2) the total net tax capacity of all taxable property within the district.
new text end
new text begin (c) new text end Any amount certified to the county auditor to be levied against market value shall
be divided by the total referendum market value of all taxable properties within the taxing
district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each
property's referendum market value shall be each property's new referendum tax before
reduction by any credits. For the purposes of this subdivision, "referendum market value"
means the market value as defined in section 126C.01, subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end
Sec. 9.
Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:
Subd. 2.
Contents of tax statements.
(a) The treasurer shall provide for the printing of
the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
amounts due all other special taxing districts, if any, may be aggregated except that any
levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
under the appropriate county's levy. If the county levy under this paragraph includes an
amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
the amount attributable for that purpose must be separately stated from the remaining county
levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
an amount for public library service under section 134.07, the amount attributable for that
purpose may be separated from the remaining county levy amount. The amount of the tax
on homesteads qualifying under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before subtraction of the deferred property
tax amount. The amount of the tax on contamination value imposed under sections 270.91
to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
amount of any special assessments, may be rounded to the nearest even whole dollar. For
purposes of this section whole odd-numbered dollars may be adjusted to the next higher
even-numbered dollar. The amount of market value excluded under section 273.11,
subdivision 16, if any, must also be listed on the tax statement.
(b) The property tax statements for manufactured homes and sectional structures taxed
as personal property shall contain the same information that is required on the tax statements
for real property.
(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:
(1) the property's estimated market value under section 273.11, subdivision 1;
(2) the property's homestead market value exclusion under section 273.13, subdivision
35;
(3) the property's taxable market value under section 272.03, subdivision 15;
(4) the property's gross tax, before credits;
(5) for deleted text begin homesteaddeleted text end agricultural properties, the deleted text begin creditdeleted text end new text begin creditsnew text end under deleted text begin sectiondeleted text end new text begin sectionsnew text end
273.1384new text begin and 273.1387new text end ;
(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
received under section 273.135 must be separately stated and identified as "taconite tax
relief"; and
(7) the net tax payable in the manner required in paragraph (a).
(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current year,
and encouraging taxpayers to attend the hearings. If the county allows notices to be included
in the envelope containing the property tax statement, and if more than one taxing district
relative to a given property decides to include a notice with the tax statement, the county
treasurer or auditor must coordinate the process and may combine the information on a
single announcement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end
Sec. 10.
new text begin
[477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR
CERTAIN OUT-OF-HOME PLACEMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Definition. new text end
new text begin
When used in this section, "out-of-home placement" means
24-hour substitute care for an Indian child as defined by section 260C.007, subdivision 21,
placed under the Indian Child Welfare Act (ICWA) and chapter 260C, away from the child's
parent or guardian and for whom the county social services agency or county correctional
agency has been assigned responsibility for the child's placement and care, which includes
placement in foster care under section 260C.007, subdivision 18, and a correctional facility
pursuant to a court order.
new text end
new text begin Subd. 2. new text end
new text begin Determination of nonfederal share of costs. new text end
new text begin
(a) By March 15, 2017, each
county shall report the following information to the commissioners of human services and
corrections: (1) the separate amounts paid out of its social service agency and its corrections
budget for out-of-home placement of children under the ICWA in calendar years 2013,
2014, and 2015; and (2) the number of case days associated with the expenditures from
each budget. The commissioner of human services shall prescribe the format of the report.
By April 15, 2017, the commissioner of human services, in consultation with the
commissioner of corrections, shall certify to the commissioner of revenue and to the
legislative committees responsible for local government aids and out-of-home placement
funding, whether the data reported under this subdivision accurately reflects total expenditures
by counties for out-of-home placement costs of children under the ICWA.
new text end
new text begin
(b) By January 1, 2018, and each January 1 thereafter, each county shall report to the
commissioners of human services and corrections the separate amounts paid out of its social
service agency and its corrections budget for out-of-home placement of children under the
ICWA in the calendar years two years before the current calendar year along with the number
of case days associated with the expenditures from each budget. The commissioner of human
services shall prescribe the format of the report.
new text end
new text begin
(c) Until the commissioner of human services develops another mechanism for collecting
and verifying data on out-of-home placements of children under the ICWA, and the
legislature authorizes the use of that data, the data collected under this subdivision must be
used to calculate payments under subdivision 3. The commissioner of human services shall
certify the nonfederal out-of-home placement costs for the three prior calendar years for
each county to the commissioner of revenue by June 1 of the year prior to the aid payment.
new text end
new text begin Subd. 3. new text end
new text begin Aid for counties. new text end
new text begin
For aids payable in calendar year 2018 and thereafter, the
amount of reimbursement to each county is 100 percent of the average nonfederal share of
the cost for out-of-home placement of children under the ICWA for the three calendar years
that were certified by the commissioner of human services by June 1 of the prior year,
provided the commissioner of human services, in consultation with the commissioner of
corrections, certifies to the commissioner of revenue that accurate data is available to make
the aid determination under this section.
new text end
new text begin Subd. 4. new text end
new text begin Aid for tribes. new text end
new text begin
(a) By June 1 of the year prior to the aid payment, each tribe
seeking reimbursement under this section must certify to the commissioner of revenue the
amount of federal reimbursement received by the tribe under the ICWA for the immediately
preceding three calendar years. If a tribe does not certify the amount of federal reimbursement
pursuant to this section, the tribe is deemed to have waived any reimbursement for
out-of-home placement for that calendar year. The commissioner of revenue shall prescribe
the format of the certification. "Tribe" is defined as an Indian tribe with membership on the
Indian Affairs Council under section 3.922.
new text end
new text begin
(b) For aids payable in 2018 and thereafter, the amount of reimbursement to each tribe
shall be the greater of: (1) five percent of the average reimbursement amount received from
the federal government for out-of-home placement costs for the three calendar years that
were certified by June 1 of the prior year; or (2) $200,000.
new text end
new text begin Subd. 5. new text end
new text begin Payments. new text end
new text begin
The commissioner of revenue must compute the amount of
reimbursement aid payable to each county and tribe under this section. On or before August
1 of each year, the commissioner shall certify the amount to be paid to each county and
tribe in the following year. The commissioner shall pay reimbursement aid annually at the
times provided in section 477A.015.
new text end
new text begin Subd. 6. new text end
new text begin Appropriation. new text end
new text begin
An amount sufficient to pay aid under this section is annually
appropriated to the commissioner of revenue from the general fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in 2018.
new text end
Sec. 11.
Minnesota Statutes 2016, section 477A.017, subdivision 2, is amended to read:
Subd. 2.
State auditor's duties.
The state auditor shall prescribe uniform financial
accounting and reporting standards in conformity with national standards to be applicable
to cities and towns of more than 2,500 population and uniform reporting standards to be
applicable to cities new text begin and towns new text end of less than 2,500 population.
new text begin EFFECTIVE DATE. new text end
new text begin
This section applies to reporting of financial information for
calendar year 2017 and thereafter.
new text end
Sec. 12.
Minnesota Statutes 2016, section 477A.017, subdivision 3, is amended to read:
Subd. 3.
Conformity.
Other law to the contrary notwithstanding, in order to receive
distributions under sections 477A.011 to 477A.03, counties deleted text begin anddeleted text end new text begin , new text end citiesnew text begin , and townsnew text end must
conform to the standards set in subdivision 2 in making all financial reports required to be
made to the state auditor deleted text begin after June 30, 1984deleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section applies to reporting of financial information for aids
payable in 2018 and thereafter.
new text end
Sec. 13.
Minnesota Statutes 2016, section 477A.03, subdivision 2a, is amended to read:
Subd. 2a.
Cities.
The total aid paid under section 477A.013, subdivision 9, is
$516,898,012 for aids payable in 2015. For aids payable in 2016 deleted text begin and thereafterdeleted text end , the total
aid paid under section 477A.013, subdivision 9, is $519,398,012.new text begin For aids payable in 2017
and thereafter, the total aid paid under section 477A.013, subdivision 9, is $539,398,012.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2017
and thereafter. For aid payable in 2017, the commissioner must certify the amount to be
paid to each city by January 31, 2017.
new text end
Sec. 14.
Minnesota Statutes 2016, section 477A.03, subdivision 2b, is amended to read:
Subd. 2b.
Counties.
(a) For aids payable in 2014 deleted text begin and thereafterdeleted text end new text begin through 2016new text end , the total
aid payable under section 477A.0124, subdivision 3, is $100,795,000new text begin . For aids payable in
2017 through 2024, the total aid payable under section 477A.0124, subdivision 3, is
$108,795,000, of which $3,000,000 shall be allocated as required under Laws 2014, chapter
150, article 4, section 6. For aids payable in 2025 and thereafter, the total aid payable under
section 477A.0124, subdivision 3, is $105,795,000new text end . Each calendar year, $500,000 of this
appropriation shall be retained by the commissioner of revenue to make reimbursements to
the commissioner of management and budget for payments made under section 611.27. The
reimbursements shall be to defray the additional costs associated with court-ordered counsel
under section 611.27. Any retained amounts not used for reimbursement in a year shall be
included in the next distribution of county need aid that is certified to the county auditors
for the purpose of property tax reduction for the next taxes payable year.
(b) For aids payable in deleted text begin 2014 and thereafterdeleted text end new text begin 2016new text end , the total aid under section 477A.0124,
subdivision 4, is $104,909,575new text begin . For aids payable in 2017 and thereafter, the total aid payable
under section 477A.0124, subdivision 4, is $109,909,575new text end . The commissioner of revenue
shall transfer to the commissioner of management and budget $207,000 annually for the
cost of preparation of local impact notes as required by section 3.987, and other local
government activities. The commissioner of revenue shall transfer to the commissioner of
education $7,000 annually for the cost of preparation of local impact notes for school districts
as required by section 3.987. The commissioner of revenue shall deduct the amounts
transferred under this paragraph from the appropriation under this paragraph. The amounts
transferred are appropriated to the commissioner of management and budget and the
commissioner of education respectively.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2017 and thereafter.
For aid payable in 2017, the commissioner must certify the amount to be paid to each county
by January 31, 2017.
new text end
Sec. 15.
new text begin
[477A.09] MAXIMUM EFFORT LOAN AID.
new text end
new text begin
For fiscal years 2018 to 2022, each school district with a maximum effort loan under
sections 126C.61 to 126C.72 outstanding as of June 30, 2016, is eligible for an aid payment
equal to one-fifth of the amount of interest that was paid on the loan between December 1,
1997, and June 30, 2016. For Independent School District No. 2580, the aid payment shall
be calculated to also include one-fifth of the amount of the interest amount paid under its
prior maximum effort loan between December 1, 1997, and June 30, 2016. Aid payments
under this section must be used to reduce property taxes levied on net tax capacity within
the district. Aid under this section must be paid in fiscal years 2018 to 2022, in the manner
provided under section 127A.45, subdivisions 9 and 13. An amount sufficient to make aid
payments under this section is annually appropriated from the general fund to the
commissioner of education.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for fiscal year 2018 and thereafter.
new text end
Sec. 16.
Minnesota Statutes 2016, section 477A.17, is amended to read:
477A.17 LAKE VERMILION-SOUDAN UNDERGROUND MINE STATE PARK;
ANNUAL PAYMENTS.
(a) In lieu of the payment amount provided under section 477A.12, subdivision 1, clause
(1), the county shall receive an annual payment for state-owned land within the boundary
of Lake Vermilion-Soudan Underground Mine State Park, established in section 85.012,
subdivision 38a, equal to 1.5 percent of the appraised value of the state-owned land.
(b) For the purposes of this section, the appraised value of the land acquired for Lake
Vermilion-Soudan Underground Mine State Park for the first five years after acquisition
shall be the purchase price of the land, plus the value of any portion of the land that is
acquired by donation. Thereafter, the appraised value of the state-owned land shall be as
determined under section 477A.12, subdivision 3new text begin , except that the appraised value of the
state-owned land within the park shall not be reduced below the 2010 appraised value of
the landnew text end .
(c) The annual payments under this section shall be distributed to the taxing jurisdictions
containing the property as follows: one-third to the school districts; one-third to the town;
and one-third to the county. The payment to school districts is not a county apportionment
under section 127A.34 and is not subject to aid recapture. Each of those taxing jurisdictions
may use the payments for their general purposes.
(d) Except as provided in this section, the payments shall be made as provided in sections
477A.11 to 477A.13.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in 2017.
new text end
Sec. 17.
new text begin
[477A.21] RIPARIAN PROTECTION AID.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) When used in this section, the following terms have the
meanings given them in this subdivision.
new text end
new text begin
(b) "Public water basins" has the meaning provided in section 103G.005, subdivision
15, clauses (1) to (8) and (11).
new text end
new text begin
(c) "Public watercourses" has the meaning provided in section 103G.005, subdivision
15, clauses (9) and (10).
new text end
new text begin Subd. 2. new text end
new text begin Certification. new text end
new text begin
The Board of Water and Soil Resources must certify to the
commissioner of revenue by July 1 of each year which counties and watershed districts
have affirmed their jurisdiction under section 103F.48, subdivision 7, paragraph (b), and
the proportion of each county's land area that is contained in each watershed district within
the county. On or before July 1 of each year, the commissioner of natural resources shall
certify to the commissioner of revenue the statewide and countywide total of miles of
shoreline of public waters basins, the number of centerline miles of public watercourses,
and the miles of public drainage system ditches.
new text end
new text begin Subd. 3. new text end
new text begin Distribution. new text end
new text begin
(a) A county that is certified under subdivision 2 or that portion
of a county containing a watershed district certified under subdivision 2 is eligible to receive
aid under this section to enforce and implement the riparian protection and water quality
practices under section 103F.48. The commissioner shall calculate a preliminary aid for all
counties that shall equal: (1) each county's share of the total number of acres in the state
classified as class 2a under section 273.13, subdivision 23, divided by two; plus (2) each
county's share of the number of miles of shoreline of public water basins, each county's
share of the number of centerline miles of public watercourses, and each county's share of
the number of miles of public drainage system ditches established under chapter 103E,
divided by two; multiplied by (3) $10,000,000.
new text end
new text begin
(b) Aid to a county shall not be greater than $200,000 or less than $45,000. If the sum
of the preliminary aids payable to counties under paragraph (a) is greater or less than the
appropriation under subdivision 5, the commissioner of revenue shall calculate the percentage
adjustment necessary so that the total of the aid under paragraph (a) equals the total amount
available for aid under subdivision 5.
new text end
new text begin
(c) If only a portion of a county is certified as eligible to receive aid under subdivision
2, the aid otherwise payable to that county under this section shall be multiplied by a fraction,
the numerator of which is the area of the certified watershed district contained within the
county and the denominator of which is the total area of the county.
new text end
new text begin
(d) Any aid that would otherwise be paid to a county or portion of a county that is not
certified under subdivision 2 shall be paid to the Board of Water and Soil Resources for the
purpose of enforcing and implementing the riparian protection and water quality practices
under section 103F.48.
new text end
new text begin Subd. 4. new text end
new text begin Payments. new text end
new text begin
The commissioner of revenue must compute the amount of riparian
protection aid payable to each eligible county and to the Board of Water and Soil Resources
under this section. On or before August 1 of each year, the commissioner shall certify the
amount to be paid to each county in the following year. The commissioner shall pay riparian
protection aid to counties and the Board of Water and Soil Resources in the same manner
and at the same time as aid payments under section 477A.015.
new text end
new text begin Subd. 5. new text end
new text begin Appropriation. new text end
new text begin
$10,000,000 for aids payable in 2017 and each year thereafter
is appropriated from the general fund to the commissioner of revenue to make the payments
required under this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in 2017 and
thereafter.
new text end
Sec. 18.
Laws 2001, First Special Session chapter 5, article 3, section 86, is amended to
read:
Sec. 86. RED RIVER WATERSHED MANAGEMENT BOARD; PAYMENT IN
LIEU OF TAXES.
(a) The Red River watershed management board may spend money from its general
fund to compensate counties and townships for lost tax revenue from land that becomes tax
exempt after it is acquired by the board or a member watershed district for flood damage
reduction project. The amount that may be paid under this section to a county or township
must not exceed the tax that was payable to that taxing jurisdiction on the land in the last
taxes payable year before the land became exempt due to the acquisition, not to exceed deleted text begin $4deleted text end new text begin
$5.133new text end per acre, multiplied by 20. This total amount may be paid in one payment, or in
equal annual installments over a period that does not exceed 20 years. A member watershed
district of the Red River management board may spend money from its construction fund
for the purposes described in this section.
(b) For the purposes of this section, "Red River watershed management board" refers
to the board established by Laws 1976, chapter 162, section 1, as amended by Laws 1982,
chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special Session
chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws 1998, chapter
389, article 3, section 29.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2017
and thereafter. For aid payable in 2017, the commissioner must certify the amount to be
paid to each county by January 31, 2017.
new text end
Sec. 19.
Laws 2016, chapter 189, article 30, section 25, subdivision 5, is amended to read:
Subd. 5.
Early repayment aid incentive.
(a) For incentive grants for a district that
repays the full outstanding original principal on its capital loan by November 30, 2016,
under Laws 2011, First Special Session chapter 11, article 4, section 8, as amended by this
act:
| $ |
deleted text begin
2,200,000
deleted text end
new text begin
2,350,000 new text end |
..... |
2017 |
(b) Of this amount, new text begin $150,000 is for a grant to Independent School District No. 36,
Kelliher; new text end $180,000 is for a grant to Independent School District No. 95, Cromwell; $495,000
is for a grant to Independent School District No. 299, Caledonia; $220,000 is for a grant to
Independent School District No. 306, Laporte; $150,000 is for a grant to Independent School
District No. 362, Littlefork; $650,000 is for a grant to Independent School District No. 682,
Roseau; and $505,000 is for a grant to Independent School District No. 2580, East Central.
(c) The grant may be used for any school-related purpose.
(d) The base appropriation for 2022 is zero.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 20. new text begin 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo
shall receive the portion of its aid payment for calendar year 2013 under Minnesota Statutes,
section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision
3, provided that the state auditor certifies to the commissioner of revenue that it received
audited financial statements from the city for calendar year 2012 by December 31, 2013.
The commissioner of revenue shall make a payment of $37,473.50 by March 31, 2017.
$37,473.50 is appropriated from the general fund to the commissioner of revenue in fiscal
year 2017 to make this payment.
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. 21. new text begin 2014 AID PENALTY FORGIVENESS.
new text end
new text begin
(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities of
Dundee, Jeffers, and Woodstock shall receive all of its calendar year 2014 aid payment that
was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided that the
state auditor certifies to the commissioner of revenue that the city complied with all reporting
requirements under Minnesota Statutes, section 477A.017, subdivision 3, for calendar years
2013 and 2014 by June 1, 2015.
new text end
new text begin
(b) The commissioner of revenue shall make payment to each city no later than March
31, 2017. Up to $101,570 is appropriated from the general fund to the commissioner of
revenue in fiscal year 2017 to make the payments under this section.
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. 22. new text begin BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
new text end
new text begin
In the first aid payable year in which a city that incorporated on October 13, 2015,
qualifies for aid under Minnesota Statutes, section 477A.013, subdivision 8, the city's
formula aid in the previous year shall be deemed to equal $115 multiplied by its population.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2017 and thereafter.
new text end
Sec. 23. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2016, section 477A.20,
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
ARTICLE 3
INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES
Section 1.
Minnesota Statutes 2016, section 136A.129, subdivision 3, is amended to read:
Subd. 3.
Program components.
(a) An intern must be an eligible student who has been
admitted to a major program that is related to the intern experience as determined by the
eligible institution.
(b) To participate in the program, an eligible institution must:
(1) enter into written agreements with eligible employers to provide internships that are
at least eight weeks long and located in greater Minnesota; and
(2) provide academic credit for the successful completion of the internship or ensure
that it fulfills requirements necessary to complete a vocational technical education program.
(c) To participate in the program, an eligible employer must enter into a written agreement
with an eligible institution specifying that the intern:
(1) deleted text begin would not have been hired without the tax credit described in subdivision 4;
deleted text end
deleted text begin (2)deleted text end did not work for the employer in the same or a similar job prior to entering the
agreement;
deleted text begin (3)deleted text end new text begin (2)new text end does not replace an existing employee;
deleted text begin (4)deleted text end new text begin (3)new text end has not previously participated in the program;
deleted text begin (5)deleted text end new text begin (4)new text end will be employed at a location in greater Minnesota;
deleted text begin (6)deleted text end new text begin (5)new text end will be paid at least minimum wage for a minimum of 16 hours per week for a
period of at least eight weeks; and
deleted text begin (7)deleted text end new text begin (6)new text end will be supervised and evaluated by the employer.
(d) The written agreement between the eligible institution and the eligible employer
must certify a credit amount to the employer, not to exceed $2,000 per intern. The total
dollar amount of credits that an eligible institution certifies to eligible employers in a calendar
year may not exceed the amount of its allocation under subdivision 4.
(e) Participating eligible institutions and eligible employers must report annually to the
office. The report must include at least the following:
(1) the number of interns hired;
(2) the number of hours and weeks worked by interns; and
(3) the compensation paid to interns.
deleted text begin
(f) An internship required to complete an academic program does not qualify for the
greater Minnesota internship program under this section.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end
Sec. 2.
Minnesota Statutes 2016, section 136G.05, subdivision 10, is amended to read:
Subd. 10.
Data.
Account owner data, account data, and data on beneficiaries of accounts
are private data on individuals or nonpublic data as defined in section 13.02, except that the
names and addresses of the beneficiaries of accounts that receive matching grants are public.new text begin
These data may be disseminated to and used by the Department of Revenue to the extent
necessary, and without the consent of the subject of the data, for its duties under Minnesota
laws.
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, 2016.
new text end
Sec. 3.
Minnesota Statutes 2016, section 289A.02, subdivision 7, is amended to read:
Subd. 7.
Internal Revenue Code.
Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through December
31, deleted text begin 2014deleted text end new text begin 2015new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2016, section 290.01, subdivision 7, is amended to read:
Subd. 7.
Resident.
(a) The term "resident" means any individual domiciled in Minnesota,
except that an individual is not a "resident" for the period of time that the individual is a
"qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code, if the
qualified individual notifies the county within three months of moving out of the country
that homestead status be revoked for the Minnesota residence of the qualified individual,
and the property is not classified as a homestead while the individual remains a qualified
individual.
(b) "Resident" also means any individual domiciled outside the state who maintains a
place of abode in the state and spends in the aggregate more than one-half of the tax year
in Minnesota, unless:
(1) the individual or the spouse of the individual is in the armed forces of the United
States; or
(2) the individual is covered under the reciprocity provisions in section 290.081.
For purposes of this subdivision, presence within the state for any part of a calendar day
constitutes a day spent in the state. new text begin A day does not qualify as a Minnesota day if the taxpayer
traveled from a place outside of Minnesota primarily for and essential to obtaining medical
care, as defined in Internal Revenue Code, section 213(d)(1)(A), in Minnesota for the
taxpayer, spouse, or a dependent of the taxpayer and the travel expense is allowed under
Internal Revenue Code, section 213(d)(1)(B), and is claimed by the taxpayer as a deductible
expense. new text end Individuals shall keep adequate records to substantiate the days spent outside the
state.
The term "abode" means a dwelling maintained by an individual, whether or not owned
by the individual and whether or not occupied by the individual, and includes a dwelling
place owned or leased by the individual's spouse.
(c) new text begin In determining where an individual is domiciled, new text end neither the commissioner nor any
court shall considernew text begin :
new text end
new text begin (1)new text end charitable contributions made by deleted text begin andeleted text end new text begin thenew text end individual within or without the state deleted text begin in
determining if the individual is domiciled in Minnesota.deleted text end new text begin ;
new text end
new text begin
(2) the location of the individual's attorney, certified public accountant, or financial
adviser; or
new text end
new text begin
(3) the place of business of a financial institution at which the individual applies for any
new type of credit or at which the individual opens or maintains any type of account.
new text end
new text begin
(d) For purposes of this subdivision, the following terms have the meanings given them:
new text end
new text begin
(1) "financial adviser" means:
new text end
new text begin
(i) an individual or business entity engaged in business as a certified financial planner,
registered investment adviser, licensed insurance producer or agent, or a registered securities
broker-dealer representative; or
new text end
new text begin
(ii) a financial institution providing services related to trust or estate administration,
investment management, or financial planning; and
new text end
new text begin
(2) "financial institution" means a financial institution as defined in section 47.015,
subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer
under the Securities and Exchange Act of 1934.
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, 2016, except the amendment to paragraph (b) is effective for taxable years beginning
after December 31, 2017.
new text end
Sec. 5.
Minnesota Statutes 2016, section 290.01, subdivision 19, is amended to read:
Subd. 19.
Net income.
The term "net income" means the federal taxable income, as
defined in section 63 of the Internal Revenue Code of 1986, as amended through the date
named in this subdivision, incorporating the federal effective dates of changes to the Internal
Revenue Code and any elections made by the taxpayer in accordance with the Internal
Revenue Code in determining federal taxable income for federal income tax purposes, and
with the modifications provided in sections 290.0131 to 290.0136.
In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:
(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
and
(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.
The net income of a real estate investment trust as defined and limited by section 856(a),
(b), and (c) of the Internal Revenue Code means the real estate investment trust taxable
income as defined in section 857(b)(2) of the Internal Revenue Code.
The net income of a designated settlement fund as defined in section 468B(d) of the
Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
Revenue Code.
The Internal Revenue Code of 1986, as amended through December 31, deleted text begin 2014deleted text end new text begin 2015new text end ,
shall be in effect for taxable years beginning after December 31, 1996.
Except as otherwise provided, references to the Internal Revenue Code in this subdivision
and sections 290.0131 to 290.0136 mean the code in effect for purposes of determining net
income for the applicable year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time as
the changes were effective for federal purposes.
new text end
Sec. 6.
Minnesota Statutes 2016, section 290.01, subdivision 31, is amended to read:
Subd. 31.
Internal Revenue Code.
Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through December
31, deleted text begin 2014deleted text end new text begin 2015new text end . Internal Revenue Code also includes any uncodified provision in federal
law that relates to provisions of the Internal Revenue Code that are incorporated into
Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, subchapter
N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as amended through
March 18, 2010.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time as
the changes were effective for federal purposes.
new text end
Sec. 7.
Minnesota Statutes 2016, section 290.0131, subdivision 10, is amended to read:
Subd. 10.
Section 179 expensing.
80 percent of the amount by which the deduction
allowed by section 179 of the Internal Revenue Code exceeds the deduction allowable deleted text begin bydeleted text end new text begin
under the dollar limits ofnew text end section 179 of the Internal Revenue Code, as amended through
December 31, 2003, is an addition.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time as
the changes were effective for federal purposes.
new text end
Sec. 8.
Minnesota Statutes 2016, section 290.0132, subdivision 14, is amended to read:
Subd. 14.
Section 179 expensing.
deleted text begin
In each of the five taxable years immediately following
the taxable year in which an addition is required under section 290.0131, subdivision 10,
or 290.0133, subdivision 12, for a shareholder of a corporation that is an S corporation, an
amount equal to one-fifth of the addition made by the taxpayer under section 290.0131,
subdivision 10, or 290.0133, subdivision 12, for a shareholder of a corporation that is an S
corporation, minus the positive value of any net operating loss under section 172 of the
Internal Revenue Code generated for the taxable year of the addition, is a subtraction. If the
net operating loss exceeds the addition for the taxable year, a subtraction is not allowed
under this subdivision.
deleted text end
new text begin
The section 179 expensing subtraction as provided under section
290.0803, subdivision 3, is a subtraction.
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, 2016.
new text end
Sec. 9.
Minnesota Statutes 2016, section 290.0132, subdivision 21, is amended to read:
Subd. 21.
Military service pension; retirement pay.
To the extent included in federal
taxable income, compensation received from a pension or other retirement pay from the
federal government for service in the military, as computed under United States Code, title
10, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. deleted text begin The subtraction must
not include any amount used to claim the credit allowed under section 290.0677.deleted text end new text begin This
subtraction is limited to individuals who do not claim the credit under section 290.0677.
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, 2016.
new text end
Sec. 10.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 23. new text end
new text begin Section 529 plans. new text end
new text begin
The amount equal to the contributions made by the taxpayer
during the taxable year to an account in a plan qualifying under section 529 of the Internal
Revenue Code, reduced by any withdrawals from the account during the taxable year, not
including amounts rolled over from other accounts in plans qualifying under section 529
of the Internal Revenue Code, and not to exceed $3,000 for married couples filing joint
returns and $1,500 for all other filers is a subtraction. The subtraction is limited to individuals
who do not claim the credit allowed under section 290.0684.
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, 2016.
new text end
Sec. 11.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 24. new text end
new text begin Discharge of indebtedness; education loans. new text end
new text begin
(a) To the extent included in
federal taxable income, the discharge of indebtedness of the taxpayer if the indebtedness
discharged is a qualified education loan, as defined in section 221 of the Internal Revenue
Code, and the indebtedness was discharged following the taxpayer's completion of an
income-driven repayment plan is a subtraction.
new text end
new text begin
(b) For purposes of this subdivision, "income-driven repayment plan" means a payment
plan established by the United States Department of Education that sets monthly student
loan payments based on income and family size under United States Code, title 20, section
1087e, or similar authority and specifically includes, but is not limited to:
new text end
new text begin
(1) the income-based repayment plan under United State Code, title 20, section 1098e;
new text end
new text begin
(2) the income contingent repayment plan established under United State Code, title 20,
section 1087e, subsection (e); and
new text end
new text begin
(3) the PAYE program or REPAYE program established by the Department of Education
under administrative regulations.
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, 2016.
new text end
Sec. 12.
Minnesota Statutes 2016, section 290.0133, subdivision 12, is amended to read:
Subd. 12.
Section 179 expensing.
80 percent of the amount by which the deduction
allowed by section 179 of the Internal Revenue Code exceeds the deduction allowable deleted text begin bydeleted text end new text begin
under the dollar limits ofnew text end section 179 of the Internal Revenue Code, as amended through
December 31, 2003, is an addition.
new text begin EFFECTIVE DATE; REVIVAL AND REENACTMENT. new text end
new text begin
This section is effective
retroactively from January 1, 2015, and Laws 2010, chapter 216, section 12, the effective
date, as amended by Laws 2016, chapter 158, article 1, section 212, is revived and reenacted
as of that date.
new text end
Sec. 13.
Minnesota Statutes 2016, section 290.0134, subdivision 14, is amended to read:
Subd. 14.
Section 179 expensing.
deleted text begin
In each of the five taxable years immediately following
the taxable year in which an addition is required under section 290.0133, subdivision 12,
an amount equal to one-fifth of the amount of the addition is a subtraction.
deleted text end
new text begin
The section 179
expensing subtraction as provided under section 290.0803, subdivision 3, is a subtraction.
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, 2016.
new text end
Sec. 14.
Minnesota Statutes 2016, section 290.06, subdivision 22, is amended to read:
Subd. 22.
Credit for taxes paid to another state.
(a) A taxpayer who is liable for taxes
based on net income to another state, as provided in paragraphs (b) through (f), upon income
allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state
if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who
is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who
is subject to income tax as a resident in the state of the individual's domicile is not allowed
this credit unless the state of domicile does not allow a similar credit.
(b) For an individual, estate, or trust, the credit is determined by multiplying the tax
payable under this chapter by the ratio derived by dividing the income subject to tax in the
other state that is also subject to tax in Minnesota while a resident of Minnesota by the
taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue
Code, modified by the addition required by section 290.0131, subdivision 2, and the
subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated
or assigned to Minnesota under sections 290.081 and 290.17.
(c) If the taxpayer is an athletic team that apportions all of its income under section
290.17, subdivision 5, the credit is determined by multiplying the tax payable under this
chapter by the ratio derived from dividing the total net income subject to tax in the other
state by the taxpayer's Minnesota taxable income.
(d)new text begin (1)new text end The credit determined under paragraph (b) or (c) shall not exceed the amount of
tax so paid to the other state on the gross income earned within the other state subject to
tax under this chapterdeleted text begin ,deleted text end new text begin .
new text end
deleted text begin nor shalldeleted text end new text begin (2)new text end the allowance of the credit new text begin does not new text end reduce the taxes paid under this chapter
to an amount less than what would be assessed if deleted text begin such income amount wasdeleted text end new text begin the gross income
earned within the other state werenew text end excluded from taxable net income.
(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the
credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum
distribution that is also subject to tax under section 290.032, and shall not exceed the tax
assessed under section 290.032. To the extent the total lump-sum distribution defined in
section 290.032, subdivision 1, includes lump-sum distributions received in prior years or
is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution
allowed under section 290.032, subdivision 2, includes tax paid to another state that is
properly apportioned to that distribution.
(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax
in such other state on that same income after the Minnesota statute of limitations has expired,
the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any
statute of limitations to the contrary. The claim for the credit must be submitted within one
year from the date the taxes were paid to the other state. The taxpayer must submit sufficient
proof to show entitlement to a credit.
(g) For the purposes of this subdivision, a resident shareholder of a corporation treated
as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed
on the shareholder in an amount equal to the shareholder's pro rata share of any net income
tax paid by the S corporation to another state. For the purposes of the preceding sentence,
the term "net income tax" means any tax imposed on or measured by a corporation's net
income.
(h) For the purposes of this subdivision, a resident partner of an entity taxed as a
partnership under the Internal Revenue Code must be considered to have paid a tax imposed
on the partner in an amount equal to the partner's pro rata share of any net income tax paid
by the partnership to another state. For purposes of the preceding sentence, the term "net
income" tax means any tax imposed on or measured by a partnership's net income.
(i) For the purposes of this subdivision, "another state":
(1) includes:
(i) the District of Columbia; and
(ii) a province or territory of Canada; but
(2) excludes Puerto Rico and the several territories organized by Congress.
(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state
by state basis.
(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this
subdivision is the excess of the tax over the amount of the foreign tax credit allowed under
section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit
allowed, the net income taxes imposed by Canada on the income are deducted first. Any
remaining amount of the allowable foreign tax credit reduces the provincial or territorial
tax that qualifies for the credit under this subdivision.
new text begin
(l) If the amount of the credit which a qualifying individual is eligible to receive under
this section for tax paid to a qualifying state, disregarding the limitation in paragraph (d),
clause (2), exceeds the tax due under this chapter, the commissioner shall refund the excess
to the individual. An amount sufficient to pay the refunds required by this section is
appropriated to the commissioner from the general fund.
new text end
new text begin
For purposes of this paragraph, "qualifying individual" means a Minnesota resident under
section 290.01, subdivision 7, paragraph (a), who received compensation during the taxable
year for the performance of personal or professional services within a qualifying state, and
"qualifying state" means a state with which an agreement under section 290.081 is not in
effect for the taxable year but was in effect for a taxable year beginning before January 1,
2010.
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, 2016.
new text end
Sec. 15.
Minnesota Statutes 2016, section 290.067, subdivision 1, is amended to read:
Subdivision 1.
Amount of credit.
(a) A taxpayer may take as a credit against the tax
due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
dependent care credit for which the taxpayer is eligible pursuant to the provisions of section
21 of the Internal Revenue Code deleted text begin subject to the limitations provided in subdivision 2deleted text end except
that in determining whether the child qualified as a dependent, income received as a
Minnesota family investment program grant or allowance to or on behalf of the child must
not be taken into account in determining whether the child received more than half of the
child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of the Internal
Revenue Code do not apply.
(b) If a child who has not attained the age of six years at the close of the taxable year is
cared for at a licensed family day care home operated by the child's parent, the taxpayer is
deemed to have paid employment-related expenses. If the child is 16 months old or younger
at the close of the taxable year, the amount of expenses deemed to have been paid equals
the maximum limit for one qualified individual under section 21(c) and (d) of the Internal
Revenue Code. If the child is older than 16 months of age but has not attained the age of
six years at the close of the taxable year, the amount of expenses deemed to have been paid
equals the amount the licensee would charge for the care of a child of the same age for the
same number of hours of care.
(c) If a married couple:
(1) has a child who has not attained the age of one year at the close of the taxable year;
(2) files a joint tax return for the taxable year; and
(3) does not participate in a dependent care assistance program as defined in section 129
of the Internal Revenue Code, in lieu of the actual employment related expenses paid for
that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i)
the combined earned income of the couple or (ii) the amount of the maximum limit for one
qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed
to be the employment related expense paid for that child. The earned income limitation of
section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These
deemed amounts apply regardless of whether any employment-related expenses have been
paid.
(d) If the taxpayer is not required and does not file a federal individual income tax return
for the tax year, no credit is allowed for any amount paid to any person unless:
(1) the name, address, and taxpayer identification number of the person are included on
the return claiming the credit; or
(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue
Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name
and address of the person are included on the return claiming the credit.
In the case of a failure to provide the information required under the preceding sentence,
the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence
in attempting to provide the information required.
(e) In the case of a nonresident, part-year resident, or a person who has earned income
not subject to tax under this chapter including earned income excluded pursuant to section
290.0132, subdivision 10, the credit determined under section 21 of the Internal Revenue
Code must be allocated based on the ratio by which the earned income of the claimant and
the claimant's spouse from Minnesota sources bears to the total earned income of the claimant
and the claimant's spouse.
(f) For residents of Minnesota, the subtractions for military pay under section 290.0132,
subdivisions 11 and 12, are not considered "earned income not subject to tax under this
chapter."
(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the
Internal Revenue Code is not considered "earned income not subject to tax under this
chapter."
new text begin
(h) For taxpayers with federal adjusted gross income in excess of $38,310, the credit is
equal to the lesser of the credit otherwise calculated under this subdivision or the amount
equal to the credit otherwise calculated under this subdivision minus ten percent of federal
adjusted gross income in excess of $38,310, but in no case is the credit less than zero. For
purposes of this paragraph, "federal adjusted gross income" has the meaning given in section
62 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, 2016.
new text end
Sec. 16.
Minnesota Statutes 2016, section 290.067, subdivision 2b, is amended to read:
Subd. 2b.
Inflation adjustment.
The commissioner shall adjust the dollar amount of
the income threshold at which the maximum credit begins to be reduced under subdivision
deleted text begin 2deleted text end new text begin 1new text end by the percentage determined pursuant to the provisions of section 1(f) of the Internal
Revenue Code, except that in section 1(f)(3)(B) the word deleted text begin "1999"deleted text end new text begin "2016"new text end shall be substituted
for the word "1992." For deleted text begin 2001deleted text end new text begin 2018new text end , the commissioner shall then determine the percent
change from the 12 months ending on August 31, deleted text begin 1999deleted text end new text begin 2016new text end , to the 12 months ending on
August 31, deleted text begin 2000deleted text end new text begin 2017new text end , and in each subsequent year, from the 12 months ending on August
31, deleted text begin 1999deleted text end new text begin 2016new text end , to the 12 months ending on August 31 of the year preceding the taxable
year. The determination of the commissioner pursuant to this subdivision must not be
considered a "rule" and is not subject to the Administrative Procedure Act contained in
chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount.
If the 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 taxable years beginning after December
31, 2017.
new text end
Sec. 17.
Minnesota Statutes 2016, section 290.0671, subdivision 1, is amended to read:
Subdivision 1.
Credit allowed.
(a) An individual who is a resident of Minnesota is
allowed a credit against the tax imposed by this chapter equal to a percentage of earned
income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the
Internal Revenue Codedeleted text begin .deleted text end new text begin , except that:
new text end
new text begin
(i) the earned income and adjusted gross income limitations of section 32 of the Internal
Revenue Code do not apply; and
new text end
new text begin
(ii) a taxpayer with no qualifying children who has attained the age of 21 but not attained
age 65 before the close of the taxable year and is otherwise eligible for a credit under section
32 of the Internal Revenue Code may also receive a credit.
new text end
(b) For individuals with no qualifying children, the credit equals deleted text begin 2.10deleted text end new text begin threenew text end percent of
the first deleted text begin $6,180deleted text end new text begin $6,550new text end of earned income. The credit is reduced by deleted text begin 2.01deleted text end new text begin threenew text end percent of
earned income or adjusted gross income, whichever is greater, in excess of deleted text begin $8,130deleted text end new text begin $12,100new text end ,
but in no case is the credit less than zero.
(c) For individuals with one qualifying child, the credit equals deleted text begin 9.35deleted text end new text begin 12.71new text end percent of the
first deleted text begin $11,120deleted text end new text begin $8,420new text end of earned income. The credit is reduced by deleted text begin 6.02deleted text end new text begin 5.2new text end percent of earned
income or adjusted gross income, whichever is greater, in excess of deleted text begin $21,190deleted text end new text begin $21,790new text end , but
in no case is the credit less than zero.
(d) For individuals with two or more qualifying children, the credit equals deleted text begin 11deleted text end new text begin 14.94new text end
percent of the first deleted text begin $18,240deleted text end new text begin $13,810new text end of earned income. The credit is reduced by deleted text begin 10.82deleted text end new text begin 9.2new text end
percent of earned income or adjusted gross income, whichever is greater, in excess of
deleted text begin $25,130deleted text end new text begin $25,850new text end , but in no case is the credit less than zero.
(e) For a part-year resident, the credit must be allocated based on the percentage calculated
under section 290.06, subdivision 2c, paragraph (e).
(f) For a person who was a resident for the entire tax year and has earned income not
subject to tax under this chapter, including income excluded under section 290.0132,
subdivision 10, the credit must be allocated based on the ratio of federal adjusted gross
income reduced by the earned income not subject to tax under this chapter over federal
adjusted gross income. For purposes of this paragraph, the subtractions for military pay
under section 290.0132, subdivisions 11 and 12, are not considered "earned income not
subject to tax under this chapter."
For the purposes of this paragraph, the exclusion of combat pay under section 112 of
the Internal Revenue Code is not considered "earned income not subject to tax under this
chapter."
(g) For tax years beginning after deleted text begin December 31, 2007, and before December 31, 2010,
and for tax years beginning afterdeleted text end December 31, 2017, the deleted text begin $8,130deleted text end new text begin $12,100new text end in paragraph (b),
the deleted text begin $21,190deleted text end new text begin $21,790new text end in paragraph (c), and the deleted text begin $25,130deleted text end new text begin $25,850new text end in paragraph (d), after being
adjusted for inflation under subdivision 7, are each increased by $3,000 for married taxpayers
filing joint returns. For tax years beginning after December 31, deleted text begin 2008deleted text end new text begin 2017new text end , the commissioner
shall annually adjust the $3,000 by the percentage determined pursuant to the provisions of
section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007"
shall be substituted for the word "1992." For deleted text begin 2009deleted text end new text begin 2018new text end , the commissioner shall then
determine the percent change from the 12 months ending on August 31, 2007, to the 12
months ending on August 31, deleted text begin 2008deleted text end new text begin 2017new text end , and in each subsequent year, from the 12 months
ending on August 31, 2007, to the 12 months ending on August 31 of the year preceding
the taxable year. The earned income thresholds as adjusted for inflation must be rounded
to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10.
The determination of the commissioner under this subdivision is not a rule under the
Administrative Procedure Act.
(h)deleted text begin (1) For tax years beginning after December 31, 2012, and before January 1, 2014,
the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph (d),
after being adjusted for inflation under subdivision 7, are increased by $5,340 for married
taxpayers filing joint returns; and (2)deleted text end for tax years beginning after December 31, deleted text begin 2013deleted text end new text begin 2016new text end ,
and before January 1, 2018, the deleted text begin $8,130deleted text end new text begin $12,100new text end in paragraph (b), the deleted text begin $21,190deleted text end new text begin $21,790new text end in
paragraph (c), and the deleted text begin $25,130deleted text end new text begin $25,850new text end in paragraph (d), after being adjusted for inflation
under subdivision 7, are each increased by $5,000 for married taxpayers filing joint returns.
For tax years beginning deleted text begin after December 31, 2010, and before January 1, 2012, and for tax
years beginningdeleted text end after December 31, deleted text begin 2013deleted text end new text begin 2016new text end , and before January 1, 2018, the commissioner
shall annually adjust the $5,000 by the percentage determined pursuant to the provisions of
section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008"
shall be substituted for the word "1992." For deleted text begin 2011deleted text end new text begin 2017new text end , the commissioner shall then
determine the percent change from the 12 months ending on August 31, 2008, to the 12
months ending on August 31, deleted text begin 2010deleted text end new text begin 2016new text end , and in each subsequent year, from the 12 months
ending on August 31, 2008, to the 12 months ending on August 31 of the year preceding
the taxable year. The earned income thresholds as adjusted for inflation must be rounded
to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10.
The determination of the commissioner under this subdivision is not a rule under the
Administrative Procedure Act.
(i) The commissioner shall construct tables showing the amount of the credit at various
income levels and make them available to taxpayers. The tables shall follow the schedule
contained in this subdivision, except that the commissioner may graduate the transition
between income brackets.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end
Sec. 18.
Minnesota Statutes 2016, section 290.0671, subdivision 7, is amended to read:
Subd. 7.
Inflation adjustment.
The earned income amounts used to calculate the credit
and the income thresholds at which the maximum credit begins to be reduced in subdivision
1 must be adjusted for inflation. The commissioner shall adjust by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section
1(f)(3)(B) the word deleted text begin "2013"deleted text end new text begin "2016"new text end shall be substituted for the word "1992." For deleted text begin 2015deleted text end new text begin 2018new text end ,
the commissioner shall then determine the percent change from the 12 months ending on
August 31, deleted text begin 2013deleted text end new text begin 2016new text end , to the 12 months ending on August 31, deleted text begin 2014deleted text end new text begin 2017new text end , and in each
subsequent year, from the 12 months ending on August 31, deleted text begin 2013deleted text end new text begin 2016new text end , to the 12 months
ending on August 31 of the year preceding the taxable year. The earned income thresholds
as adjusted for inflation must be rounded to the nearest $10 amount. If the amount ends in
$5, the amount is rounded up to the nearest $10 amount. The determination of the
commissioner under this subdivision is not a rule under the Administrative Procedure Act.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2017.
new text end
Sec. 19.
Minnesota Statutes 2016, section 290.0674, subdivision 2, is amended to read:
Subd. 2.
Limitations.
(a) For claimants with income not greater than $33,500, the
maximum credit allowed for a family is $1,000 multiplied by the number of qualifying
children in kindergarten through grade 12 in the family. The maximum credit for families
with one qualifying child in kindergarten through grade 12 is reduced by $1 for each $4 of
household income over $33,500, and the maximum credit for families with two or more
qualifying children in kindergarten through grade 12 is reduced by $2 for each $4 of
household income over $33,500, but in no case is the credit less than zero.
For purposes of this section "income" has the meaning given in deleted text begin section 290.067,deleted text end
subdivision 2a. In the case of a married claimant, a credit is not allowed unless a joint income
tax return is filed.
(b) For a nonresident or part-year resident, the credit determined under subdivision 1
and the maximum credit amount in paragraph (a) must be allocated using the percentage
calculated in section 290.06, subdivision 2c, paragraph (e).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end
Sec. 20.
Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision
to read:
new text begin Subd. 2a. new text end
new text begin Income. new text end
new text begin
(a) For purposes of this section, "income" means the sum of the
following:
new text end
new text begin
(1) federal adjusted gross income as defined in section 62 of the Internal Revenue Code;
and
new text end
new text begin
(2) the sum of the following amounts to the extent not included in clause (1):
new text end
new text begin
(i) all nontaxable income;
new text end
new text begin
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m), of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
new text end
new text begin
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
new text end
new text begin
(iv) cash public assistance and relief;
new text end
new text begin
(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
new text end
new text begin
(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
new text end
new text begin
(vii) workers' compensation;
new text end
new text begin
(viii) nontaxable strike benefits;
new text end
new text begin
(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
new text end
new text begin
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
new text end
new text begin
(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code;
new text end
new text begin
(xii) nontaxable scholarship or fellowship grants;
new text end
new text begin
(xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code;
new text end
new text begin
(xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
new text end
new text begin
(xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and
new text end
new text begin
(xvi) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
new text end
new text begin
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" means federal adjusted gross income reflected in the
fiscal year ending in the next calendar year. Federal adjusted gross income may not be
reduced by the amount of a net operating loss carryback or carryforward or a capital loss
carryback or carryforward allowed for the year.
new text end
new text begin
(b) "Income" does not include:
new text end
new text begin
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
new text end
new text begin
(2) amounts of any pension or annuity that were exclusively funded by the claimant or
spouse if the funding payments were not excluded from federal adjusted gross income in
the years when the payments were made;
new text end
new text begin
(3) surplus food or other relief in kind supplied by a governmental agency;
new text end
new text begin
(4) relief granted under chapter 290A;
new text end
new text begin
(5) child support payments received under a temporary or final decree of dissolution or
legal separation; and
new text end
new text begin
(6) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16.
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, 2016.
new text end
Sec. 21.
Minnesota Statutes 2016, section 290.0677, subdivision 1a, is amended to read:
Subd. 1a.
Credit allowed; past military service.
(a) A qualified individual is allowed
a credit against the tax imposed under this chapter for past military service. The credit equals
deleted text begin $750deleted text end new text begin $1,000new text end . The credit allowed under this subdivision is reduced by ten percent of adjusted
gross income in excess of deleted text begin $30,000deleted text end new text begin $50,000new text end , but in no case is the credit less than zero.
(b) For a nonresident or a part-year resident, the credit under this subdivision must be
allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph
(e).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end
Sec. 22.
Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:
Subd. 2.
Definitions.
For purposes of this section, the following terms have the meanings
given.
(a) "Qualified research expenses" means (i) qualified research expenses and basic research
payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does
not include expenses incurred for qualified research or basic research conducted outside
the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and
(ii) contributions to a nonprofit corporation established and operated pursuant to the
provisions of chapter 317A for the purpose of promoting the establishment and expansion
of business in this state, provided the contributions are invested by the nonprofit corporation
for the purpose of providing funds for small, technologically innovative enterprises in
Minnesota during the early stages of their development.
(b) "Qualified research" means qualified research as defined in section 41(d) of the
Internal Revenue Code, except that the term does not include qualified research conducted
outside the state of Minnesota.
(c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue
Code, except that the average annual gross receipts must be calculated using Minnesota
sales or receipts under section 290.191 and the definitions contained in clauses (a) and (b)
shall apply.new text begin If there are inadequate records or the records are unavailable to compute or
verify the base percentage, a fixed base percentage of 16 percent must be used.
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, 2016.
new text end
Sec. 23.
new text begin
[290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN
TEACHER'S LICENSURE FIELD.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given them.
new text end
new text begin
(b) "Master's degree program" means a graduate-level program at an accredited university
leading to a master of arts or science degree in a core content area directly related to a
qualified teacher's licensure field. The master's degree program may not include pedagogy
or a pedagogy component. To be eligible under this credit, a licensed elementary school
teacher must pursue and complete a master's degree program in a core content area in which
the teacher provides direct classroom instruction.
new text end
new text begin
(c) "Qualified teacher" means a K-12 teacher who:
new text end
new text begin
(1) holds a continuing license granted by the Minnesota Board of Teaching both when
the teacher begins the master's degree program and when the teacher completes the master's
degree program;
new text end
new text begin
(2) began a master's degree program after January 1, 2017; and
new text end
new text begin
(3) completes the master's degree program during the taxable year.
new text end
new text begin
(d) "Core content area" means the academic subject of reading, English or language arts,
mathematics, science, foreign languages, civics and government, economics, arts, history,
or geography.
new text end
new text begin Subd. 2. new text end
new text begin Credit allowed. new text end
new text begin
(a) An individual who is a qualified teacher is allowed a credit
against the tax imposed under this chapter. The credit equals $2,500.
new text end
new text begin
(b) For a nonresident or a part-year resident, the credit under this subdivision must be
allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph
(e).
new text end
new text begin
(c) A qualified teacher may claim the credit in this section only one time for each master's
degree program completed in a core content area.
new text end
new text begin Subd. 3. new text end
new text begin Credit refundable. new text end
new text begin
(a) If the amount of the credit for which an individual is
eligible exceeds the individual's liability for tax under this chapter, the commissioner shall
refund the excess to the individual.
new text end
new text begin
(b) The amount necessary to pay the refunds required by this section is appropriated to
the commissioner from the general fund.
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, 2016.
new text end
Sec. 24.
new text begin
[290.0683] STUDENT LOAN CREDIT.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Adjusted gross income" means federal adjusted gross income as defined in section
62 of the Internal Revenue Code. In the case of a married couple filing jointly, "adjusted
gross income" means the adjusted gross income of the taxpayer and spouse.
new text end
new text begin
(c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue
Code, except that "earned income" includes combat pay excluded from federal taxable
income under section 112 of the Internal Revenue Code.
new text end
new text begin
(d) "Education profession" means:
new text end
new text begin
(1) a full-time job in public education; early childhood education, including licensed or
regulated child care, Head Start, and state-funded prekindergarten; school-based library
sciences; and other school-based services; or
new text end
new text begin
(2) a full-time job as a faculty member at a tribal college or university as defined in
section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs
subject areas or areas of shortage, including nurse faculty, foreign language faculty, and
part-time faculty at community colleges, as determined by the United States Secretary of
Education.
new text end
new text begin
(e) "Eligible individual" means an individual who has one or more qualified education
loans related to an undergraduate or graduate degree program of the individual at a
postsecondary educational institution.
new text end
new text begin
(f) "Eligible loan payments" means the amount the eligible individual paid during the
taxable year to pay principal and interest on qualified education loans.
new text end
new text begin
(g) "Postsecondary educational institution" means a postsecondary institution eligible
for state student aid under section 136A.103 or, if the institution is not located in this state,
a postsecondary institution participating in the federal Pell Grant program under Title IV
of the Higher Education Act of 1965, Public Law 89-329, as amended.
new text end
new text begin
(h) "Public service job" means a full-time job in emergency management; government,
excluding time served as a member of Congress; military service; public safety; law
enforcement; public health, including nurses, nurse practitioners, nurses in a clinical setting,
and full-time professionals engaged in health care practitioner occupations and health care
support occupations, as such terms are defined by the Bureau of Labor Statistics; social
work in a public child or family service agency; public interest law services including
prosecution or public defense or legal advocacy on behalf of low-income communities at
a nonprofit organization; public service for individuals with disabilities or public service
for the elderly; public library sciences; or at an organization that is described in section
501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a) of
the Internal Revenue Code.
new text end
new text begin
(i) "Qualified education loan" has the meaning given in section 221 of the Internal
Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
new text end
new text begin Subd. 2. new text end
new text begin Credit allowed. new text end
new text begin
(a) An eligible individual is allowed a credit against the tax
due under this chapter. The credit equals a percentage of eligible loan payments in excess
of ten percent of adjusted gross income, up to $1,000, as follows:
new text end
new text begin
(1) for eligible individuals, 50 percent;
new text end
new text begin
(2) for eligible individuals in a public service job, 65 percent; and
new text end
new text begin
(3) for eligible individuals in an education profession, 75 percent.
new text end
new text begin
(b) The credit must not exceed the eligible individual's earned income for the taxable
year.
new text end
new text begin
(c) In the case of a married couple filing a joint return, each spouse is eligible for the
credit in this section.
new text end
new text begin
(d) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end
new text begin
(e) An eligible individual may receive the credit under this section without regard to the
individual's eligibility for the public service loan forgiveness program under United States
Code, title 20, section 1087e(m).
new text end
new text begin Subd. 3. new text end
new text begin Credit refundable. new text end
new text begin
If the amount of credit that an individual who is a resident
or part-year resident of Minnesota is eligible to receive under this section exceeds the
individual's tax liability under this chapter, the commissioner shall refund the excess to the
individual. For a nonresident taxpayer, the credit may not exceed the taxpayer's liability for
tax under this chapter.
new text end
new text begin Subd. 4. new text end
new text begin Appropriation. new text end
new text begin
An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner from the general fund.
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, 2016.
new text end
Sec. 25.
new text begin
[290.0684] SECTION 529 COLLEGE SAVINGS PLAN CREDIT.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
For purposes of this section, the term "federal adjusted gross
income" has the meaning given under section 62(a) of the Internal Revenue Code, and
"nonqualified distribution" means any distribution that is includible in gross income under
section 529 of the Internal Revenue Code.
new text end
new text begin Subd. 2. new text end
new text begin Credit allowed. new text end
new text begin
(a) A credit of up to $500 is allowed against the tax imposed
by this chapter to a resident individual who contributes to an account in a plan qualifying
under section 529 of the Internal Revenue Code, subject to the limitations in paragraph (b).
The credit is not allowed to an individual who is eligible to be claimed as a dependent, as
defined in sections 151 and 152 of the Internal Revenue Code.
new text end
new text begin
(b) The credit allowed must be calculated by applying the following rates to the amount
contributed to an account in a plan qualifying under section 529 of the Internal Revenue
Code, in a taxable year, reduced by any withdrawals from the account made during the
taxable year, and not including any amounts rolled over from other accounts in plans
qualifying under section 529 of the Internal Revenue Code:
new text end
new text begin
(1) 50 percent for individual filers and married couples filing a joint return who have
federal adjusted gross income of not more than $80,000;
new text end
new text begin
(2) 25 percent for married couples filing a joint return who have federal adjusted gross
income over $80,000, but not more than $100,000;
new text end
new text begin
(3) ten percent for married couples filing a joint return who have federal adjusted gross
income over $100,000, but not more than $120,000; and
new text end
new text begin
(4) five percent for married couples filing a joint return who have federal adjusted gross
income over $120,000, but not more than $160,000.
new text end
new text begin
(c) The income thresholds in paragraph (b), clauses (1) to (4), used to calculate the credit,
must be adjusted for inflation. The commissioner shall adjust by the percentage determined
under the provisions of section 1(f) of the Internal Revenue Code, except that in section
1(f)(3)(B) the word "2015" is substituted for the word "1992." For 2017, the commissioner
shall then determine the percent change from the 12 months ending on August 31, 2015, to
the 12 months ending on August 31, 2016, and in each subsequent year, from the 12 months
ending on August 31, 2015, to the 12 months ending on August 31 of the year preceding
the taxable year. The income thresholds as adjusted for inflation must be rounded to the
nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest $10
amount. The determination of the commissioner under this subdivision is not a rule under
the Administrative Procedure Act including section 14.386.
new text end
new text begin Subd. 3. new text end
new text begin Credit refundable. new text end
new text begin
If the amount of credit that an individual is eligible to
receive under this section exceeds the individual's tax liability under this chapter, the
commissioner shall refund the excess to the individual.
new text end
new text begin Subd. 4. new text end
new text begin Allocation. new text end
new text begin
For a part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end
new text begin Subd. 5. new text end
new text begin Recapture of credit. new text end
new text begin
In the case of a nonqualified distribution, the taxpayer is
liable to the commissioner for the lesser of: ten percent of the amount of the nonqualified
distribution, or the sum of credits received under this section for all years.
new text end
new text begin Subd. 6. new text end
new text begin Appropriation. new text end
new text begin
An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner from the general fund.
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, 2016.
new text end
Sec. 26.
Minnesota Statutes 2016, section 290.0685, subdivision 1, is amended to read:
Subdivision 1.
Credit allowed.
(a) Annew text begin eligiblenew text end individual is allowed a credit against the
tax imposed by this chapter equal to $2,000 for each birth for which a certificate of birth
resulting in stillbirth has been issued under section 144.2151. The credit under this section
is allowed only in the taxable year in which the stillbirth occurred deleted text begin and if the child would
have been a dependent of the taxpayer as defined in section 152 of the Internal Revenue
Codedeleted text end .
(b) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text begin
(c) For purposes of this section, "eligible individual" means:
new text end
new text begin
(1) the individual who gave birth to the child and who is listed as a parent on the
certificate of birth resulting in stillbirth; or
new text end
new text begin
(2) if no individual meets the requirement of clause (1), then the first parent listed on
the certificate of birth resulting in stillbirth.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment for
taxable years beginning after December 31, 2016.
new text end
Sec. 27.
Minnesota Statutes 2016, section 290.0692, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Sunset. new text end
new text begin
This section expires at the same time and on the same terms as section
116J.8737, except that the expiration of this section does not affect the commissioner of
revenue's authority to audit or power of examination and assessment for credits claimed
under this section.
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. 28.
new text begin
[290.0803] SECTION 179 EXPENSING SUBTRACTION.
new text end
new text begin Subdivision 1. new text end
new text begin Current year allowance. new text end
new text begin
(a) In each of the five tax years immediately
following the tax year in which an addition is required under section 290.0131, subdivision
10, or 290.0133, subdivision 12, the current year allowance equals one-fifth of the addition
made by the taxpayer under section 290.0131, subdivision 10, or 290.0133, subdivision 12.
new text end
new text begin
(b) In the case of a shareholder of a corporation that is an S corporation, the current year
allowance is reduced by the positive value of any net operating loss under section 172 of
the Internal Revenue Code generated for the tax year of the addition and, if the net operating
loss exceeds the addition for the tax year, the current year allowance is zero.
new text end
new text begin Subd. 2. new text end
new text begin Section 179 expensing carryover. new text end
new text begin
(a) For purposes of this section, the current
year allowance determined under subdivision 1 is considered to be the last modification
allowed under section 290.0132 in determining net income. If the amount allowed under
subdivision 1 exceeds net income computed without regard to the current year allowance,
then the excess is a section 179 expensing carryover to each of the ten succeeding taxable
years. The entire amount of the section 179 expensing carryover is carried first to the earliest
taxable year to which the section 179 expensing carryover may be carried and then to each
successive year to which the section 179 expensing carryover may be carried.
new text end
new text begin
(b) The provisions of this subdivision do not apply to corporations taxable under section
290.02.
new text end
new text begin Subd. 3. new text end
new text begin Section 179 expensing subtraction. new text end
new text begin
A taxpayer is allowed a section 179
expensing subtraction from federal taxable income under section 290.0132, subdivision 14,
or 290.0134, subdivision 14. The subtraction equals the sum of:
new text end
new text begin
(1) the current year allowance determined under subdivision 1; and
new text end
new text begin
(2) for an individual, estate, or trust, any section 179 expensing carryover from prior
taxable years determined under subdivision 2.
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, 2016.
new text end
Sec. 29.
Minnesota Statutes 2016, section 290.091, subdivision 2, is amended to read:
Subd. 2.
Definitions.
For purposes of the tax imposed by this section, the following
terms have the meanings given:
(a) "Alternative minimum taxable income" means the sum of the following for the taxable
year:
(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
taxable income, but excluding:
(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
(ii) the medical expense deduction;
(iii) the casualty, theft, and disaster loss deduction; and
(iv) the impairment-related work expenses of a disabled person;
(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2; and
(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;
less the sum of the amounts determined under the following:
(1) interest income as defined in section 290.0132, subdivision 2;
(2) an overpayment of state income tax as provided by section 290.0132, subdivision 3,
to the extent included in federal alternative minimum taxable income;
(3) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing federal adjusted gross income;
(4) amounts subtracted from federal taxable income as provided by section 290.0132,
subdivisions 7, 9 to 15, 17, and deleted text begin 21deleted text end new text begin 24new text end ; and
(5) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c).
In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Code.
(b) "Investment interest" means investment interest as defined in section 163(d)(3) of
the Internal Revenue Code.
(c) "Net minimum tax" means the minimum tax imposed by this section.
(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
under this chapter.
(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end
Sec. 30.
Minnesota Statutes 2016, section 290A.03, subdivision 15, is amended to read:
Subd. 15.
Internal Revenue Code.
"Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through December 31, deleted text begin 2014deleted text end new text begin 2015new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for property tax refunds
based on property taxes payable after December 31, 2016, and rent paid after December
31, 2015.
new text end
Sec. 31.
Minnesota Statutes 2016, section 291.005, subdivision 1, is amended to read:
Subdivision 1.
Scope.
Unless the context otherwise clearly requires, the following terms
used in this chapter shall have the following meanings:
(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.
(2) "Federal gross estate" means the gross estate of a decedent as required to be valued
and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
increased by the value of any property in which the decedent had a qualifying income interest
for life and for which an election was made under section 291.03, subdivision 1d, for
Minnesota estate tax purposes, but was not made for federal estate tax purposes.
(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
as amended through December 31, deleted text begin 2014deleted text end new text begin 2015new text end .
(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included in the estate which has its situs outside Minnesota,
and (b) including any property omitted from the federal gross estate which is includable in
the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
(5) "Nonresident decedent" means an individual whose domicile at the time of death
was not in Minnesota.
(6) "Personal representative" means the executor, administrator or other person appointed
by the court to administer and dispose of the property of the decedent. If there is no executor,
administrator or other person appointed, qualified, and acting within this state, then any
person in actual or constructive possession of any property having a situs in this state which
is included in the federal gross estate of the decedent shall be deemed to be a personal
representative to the extent of the property and the Minnesota estate tax due with respect
to the property.
(7) "Resident decedent" means an individual whose domicile at the time of death was
in Minnesota.new text begin The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply
to determinations of domicile under this chapter.
new text end
(8) "Situs of property" means, with respect to:
(i) real property, the state or country in which it is located;
(ii) tangible personal property, the state or country in which it was normally kept or
located at the time of the decedent's death or for a gift of tangible personal property within
three years of death, the state or country in which it was normally kept or located when the
gift was executed;
(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
Code, owned by a nonresident decedent and that is normally kept or located in this state
because it is on loan to an organization, qualifying as exempt from taxation under section
501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
(iv) intangible personal property, the state or country in which the decedent was domiciled
at death or for a gift of intangible personal property within three years of death, the state or
country in which the decedent was domiciled when the gift was executed.
For a nonresident decedent with an ownership interest in a pass-through entity with
assets that include real or tangible personal property, situs of the real or tangible personal
property, including qualified works of art, is determined as if the pass-through entity does
not exist and the real or tangible personal property is personally owned by the decedent. If
the pass-through entity is owned by a person or persons in addition to the decedent, ownership
of the property is attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.
(9) "Pass-through entity" includes the following:
(i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;
(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
(iii) a single-member limited liability company or similar entity, regardless of whether
it is taxed as an association or is disregarded for federal income tax purposes under Code
of Federal Regulations, title 26, section 301.7701-3; or
(iv) a trust to the extent the property is includible in the decedent's federal gross estate;
but excludes
(v) an entity whose ownership interest securities are traded on an exchange regulated
by the Securities and Exchange Commission as a national securities exchange under section
6 of the Securities Exchange Act, United States Code, title 15, section 78f.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after December 31, 2016.
new text end
Sec. 32.
Laws 2010, chapter 216, section 12, the effective date, as amended by Laws 2016,
chapter 158, article 1, section 212, is amended to read:
EFFECTIVE DATE.
This section is effective for investments made after July 1, 2010,
for taxable years beginning after December 31, 2009deleted text begin , and before January 1, 2017deleted text end , and only
applies to investments made after the qualified small business receiving the investment has
been certified by the commissioner of employment and economic development.
new text begin EFFECTIVE DATE; REVIVAL AND REENACTMENT. new text end
new text begin
This section is effective
retroactively from January 1, 2015, and Laws 2010, chapter 216, section 12, the effective
date, as amended by Laws 2016, chapter 158, article 1, section 212, is revived and reenacted
as of that date.
new text end
Sec. 33. new text begin AMENDED RETURNS.
new text end
new text begin Subdivision 1. new text end
new text begin Certain IRA rollovers. new text end
new text begin
An individual who excludes an amount from
net income in a prior taxable year through rollover of an airline payment amount to a
traditional IRA, as authorized under Public Law 114-113, division Q, title III, section 307,
may file an amended individual income tax return and claim for refund of state taxes as
provided under Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by April 1,
2017.
new text end
new text begin Subd. 2. new text end
new text begin Exclusion for certain incarcerated individuals. new text end
new text begin
An individual who excludes
from net income in a prior taxable year civil damages, restitution, or other monetary award
received as compensation for a wrongful incarceration, as authorized under Public Law
114-113, division Q, title III, section 304, may file an amended individual income tax return
and claim for refund of state taxes as provided under Minnesota Statutes, section 289A.40,
subdivision 1, or, if later, by April 1, 2017.
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. 34. new text begin ESTATE TAX REVIEW; TEMPORARY LIMIT ON ASSESSMENTS.
new text end
new text begin
(a) The commissioner of revenue shall:
new text end
new text begin
(1) review the estate tax's definition of qualified farm property and its linkage to the
property tax classification of the property during the three-year period following the death
of the decedent; and
new text end
new text begin
(2) by August 1, 2017, report to the committees of the house of representatives and the
senate with jurisdiction over taxes on alternative methods of ensuring that the use of the
property by qualified heirs during the three-year period after the decedent's death is consistent
with the purpose of limiting the subtraction to properties where its use continues that of the
decedent without any material change in its use by the qualified heirs and its ownership is
consistent with maintaining family ownership of the farm.
new text end
new text begin
(b) Prior to June 1, 2017, the commissioner of revenue shall not assess recapture tax
under Minnesota Statutes, section 291.03, subdivision 11, for a change in the property tax
classification of agricultural homestead property if the following conditions are satisfied:
new text end
new text begin
(1) the property is held in a trust of which the surviving spouse is a beneficiary; and
new text end
new text begin
(2) the property receives partial homestead classification because a beneficiary of the
trust is the owner of another agricultural homestead.
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. 35. new text begin INDIVIDUAL INCOME TAX COLLECTION ACTION PROHIBITED.
new text end
new text begin
Notwithstanding any law to the contrary, the commissioner of revenue shall not increase
the amount due or decrease the refund for an individual income tax return for the taxable
year beginning after December 31, 2014, and before January 1, 2016, to the extent the
amount due was understated or the refund was overstated because the taxpayer calculated
the tax or refund based on the Internal Revenue Code, as amended through December 31,
2014, rather than based on the Internal Revenue Code, as amended through December 31,
2015, as provided in this act.
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. 36. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2016, section 290.067, subdivisions 2 and 2a,
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 taxable years beginning after December
31, 2016.
new text end
ARTICLE 4
SALES AND USE TAXES
Section 1.
Minnesota Statutes 2016, section 128C.24, is amended to read:
128C.24 LEAGUE FUNDS TRANSFER.
Beginning July 1, 2007, the Minnesota State High School League shall annually determine
the sales tax savings attributable to section 297A.70, subdivision 11,new text begin paragraph (b),new text end and
annually transfer that amount to a nonprofit charitable foundation created for the purpose
of promoting high school extracurricular activities. The funds must be used by the foundation
to make grants to fund, assist, recognize, or promote high school students' participation in
extracurricular activities. The first priority for funding will be grants for scholarships to
individuals to offset athletic fees. The foundation must equitably award grants based on
considerations of gender balance, school size, and geographic location, to the extent feasible.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
December 31, 2016.
new text end
Sec. 2.
Minnesota Statutes 2016, section 297A.61, subdivision 3, is amended to read:
Subd. 3.
Sale and purchase.
(a) "Sale" and "purchase" include, but are not limited to,
each of the transactions listed in this subdivision. In applying the provisions of this chapter,
the terms "tangible personal property" and "retail sale" include the taxable services listed
in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable
services, unless specifically provided otherwise. Services performed by an employee for
an employer are not taxable. Services performed by a partnership or association for another
partnership or association are not taxable if one of the entities owns or controls more than
80 percent of the voting power of the equity interest in the other entity. Services performed
between members of an affiliated group of corporations are not taxable. For purposes of
the preceding sentence, "affiliated group of corporations" means those entities that would
be classified as members of an affiliated group as defined under United States Code, title
26, section 1504, disregarding the exclusions in section 1504(b).
(b) Sale and purchase include:
(1) any transfer of title or possession, or both, of tangible personal property, whether
absolutely or conditionally, for a consideration in money or by exchange or barter; and
(2) the leasing of or the granting of a license to use or consume, for a consideration in
money or by exchange or barter, tangible personal property, other than a manufactured
home used for residential purposes for a continuous period of 30 days or more.
(c) Sale and purchase include the production, fabrication, printing, or processing of
tangible personal property for a consideration for consumers who furnish either directly or
indirectly the materials used in the production, fabrication, printing, or processing.
(d) Sale and purchase include the preparing for a consideration of food. Notwithstanding
section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:
(1) prepared food sold by the retailer;
(2) soft drinks;
(3) candy;
(4) dietary supplements; and
(5) all food sold through vending machines.
(e) A sale and a purchase includes the furnishing for a consideration of electricity, gas,
water, or steam for use or consumption within this state.
(f) A sale and a purchase includes the transfer for a consideration of prewritten computer
software whether delivered electronically, by load and leave, or otherwise.
(g) A sale and a purchase includes the furnishing for a consideration of the following
services:
(1) the privilege of admission to places of amusement, recreational areas, or athletic
events, and the making available of amusement devices, tanning facilities, reducing salons,
steam baths, health clubs, and spas or athletic facilities;
(2) lodging and related services by a hotel, rooming house, resort, campground, motel,
or trailer camp, including furnishing the guest of the facility with access to telecommunication
services, and the granting of any similar license to use real property in a specific facility,
other than the renting or leasing of it for a continuous period of 30 days or more under an
enforceable written agreement that may not be terminated without prior notice and including
accommodations intermediary services provided in connection with other services provided
under this clause;
(3) nonresidential parking services, whether on a contractual, hourly, or other periodic
basis, except for parking at a meter;
(4) the granting of membership in a club, association, or other organization if:
(i) the club, association, or other organization makes available for the use of its members
sports and athletic facilities, without regard to whether a separate charge is assessed for use
of the facilities; and
(ii) use of the sports and athletic facility is not made available to the general public on
the same basis as it is made available to members.
Granting of membership means both onetime initiation fees and periodic membership dues.
Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash
courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming
pools; and other similar athletic or sports facilities;
(5) delivery of aggregate materials by a third party, excluding delivery of aggregate
material used in road construction; and delivery of concrete block by a third party if the
delivery would be subject to the sales tax if provided by the seller of the concrete block.
For purposes of this clause, "road construction" means construction of:
(i) public roads;
(ii) cartways; and
(iii) private roads in townships located outside of the seven-county metropolitan area
up to the point of the emergency response location sign; and
(6) services as provided in this clause:
(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
include services provided by coin operated facilities operated by the customer;
(ii) motor vehicle washing, waxing, and cleaning services, including services provided
by coin operated facilities operated by the customer, and rustproofing, undercoating, and
towing of motor vehicles;
(iii) building and residential cleaning, maintenance, and disinfecting services and pest
control and exterminating services;
(iv) detective, security, burglar, fire alarm, and armored car services; but not including
services performed within the jurisdiction they serve by off-duty licensed peace officers as
defined in section 626.84, subdivision 1, or services provided by a nonprofit organization
or any organization at the direction of a county for monitoring and electronic surveillance
of persons placed on in-home detention pursuant to court order or under the direction of the
Minnesota Department of Corrections;
(v) pet grooming services;
(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant
care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing
contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility
lines. Services performed under a construction contract for the installation of shrubbery,
plants, sod, trees, bushes, and similar items are not taxable;
(vii) massages, except when provided by a licensed health care facility or professional
or upon written referral from a licensed health care facility or professional for treatment of
illness, injury, or disease; and
(viii) the furnishing of lodging, board, and care services for animals in kennels and other
similar arrangements, but excluding veterinary and horse boarding services.
(h) A sale and a purchase includes the furnishing for a consideration of tangible personal
property or taxable services by the United States or any of its agencies or instrumentalities,
or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.
(i) A sale and a purchase includes the furnishing for a consideration of
telecommunications services, ancillary services associated with telecommunication services,
and pay television services. Telecommunication services include, but are not limited to, the
following services, as defined in section 297A.669: air-to-ground radiotelephone service,
mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid
wireless calling service, and private communication services. The services in this paragraph
are taxed to the extent allowed under federal law.
(j) A sale and a purchase includes the furnishing for a consideration of installation if the
installation charges would be subject to the sales tax if the installation were provided by
the seller of the item being installed.
(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a
customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor
vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02,
subdivision 11.
(l) A sale and a purchase includes furnishing for a consideration of specified digital
products or other digital products or granting the right for a consideration to use specified
digital products or other digital products on a temporary or permanent basis and regardless
of whether the purchaser is required to make continued payments for such right. Wherever
the term "tangible personal property" is used in this chapter, other than in subdivisions 10
and 38, the provisions also apply to specified digital products, or other digital products,
unless specifically provided otherwise or the context indicates otherwise.
new text begin
(m) The sale of the privilege of admission under section 297A.61, subdivision 3,
paragraph (g), clause (1), to a place of amusement or athletic event includes all charges
included in the privilege of admission's sales price, without deduction for amenities that
may be provided, unless the amenities are separately stated and the purchaser of the privilege
of admission is entitled to add or decline the amenities, and the amenities are not otherwise
taxable.
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. 3.
Minnesota Statutes 2016, section 297A.66, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) To the extent allowed by the United States Constitution
and the laws of the United States, "retailer maintaining a place of business in this state," or
a similar term, means a retailer:
(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an
office, place of distribution, salesnew text begin , storage,new text end or sample room or place, warehouse, or other
place of businessnew text begin , including the employment of a resident of this state who works from a
home office in this statenew text end ; or
(2) having a representative, including, but not limited to, an affiliate, agent, salesperson,
canvasser, deleted text begin ordeleted text end new text begin marketplace provider,new text end solicitornew text begin , or other third party new text end operating in this state
under the authority of the retailer or its subsidiary, for any purpose, including the repairing,
selling, delivering, installing, new text begin facilitating sales, processing sales, new text end or soliciting of orders for
the retailer's goods or services, or the leasing of tangible personal property located in this
state, whether the place of business or agent, representative, affiliate, salesperson, canvasser,
or solicitor is located in the state permanently or temporarily, or whether or not the retailer,
subsidiary, or affiliate is authorized to do business in this state.new text begin A retailer is represented by
a marketplace provider in this state if the retailer makes sales in this state facilitated by a
marketplace provider that maintains a place of business in this state.
new text end
(b) "Destination of a sale" means the location to which the retailer makes delivery of
the property sold, or causes the property to be delivered, to the purchaser of the property,
or to the agent or designee of the purchaser. The delivery may be made by any means,
including the United States Postal Service or a for-hire carrier.
new text begin
(c) "Marketplace provider" means any person who facilitates a retail sale by a retailer
by:
new text end
new text begin
(1) listing or advertising for sale by the retailer in any forum, tangible personal property,
services, or digital goods that are subject to tax under this chapter; and
new text end
new text begin
(2) either directly or indirectly through agreements or arrangements with third parties
collecting payment from the customer and transmitting that payment to the retailer regardless
of whether the marketplace provider receives compensation or other consideration in
exchange for its services.
new text end
new text begin
(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible
goods, services, and digital goods subject to sales and use tax under this chapter.
new text end
Sec. 4.
Minnesota Statutes 2016, section 297A.66, subdivision 2, is amended to read:
Subd. 2.
Retailer maintaining place of business in this state.
new text begin (a) Except as provided
in paragraph (b), new text end a retailer maintaining a place of business in this state who makes retail
sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes and
remit them to the commissioner under section 297A.77.
new text begin
(b) A retailer with total taxable retail sales to customers in this state of less than $10,000
in the 12-month period ending on the last day of the most recently completed calendar
quarter is not required to collect and remit sales tax if it is determined to be a retailer
maintaining a place of business in the state solely because it made sales through one or more
marketplace providers. The provisions of this paragraph do not apply to a retailer that is or
was registered to collect sales and use tax in this state.
new text end
Sec. 5.
Minnesota Statutes 2016, section 297A.66, subdivision 4, is amended to read:
Subd. 4.
Affiliated entities.
(a) An entity is an "affiliate" of the retailer for purposes of
subdivision 1, paragraph (a), ifnew text begin the entitynew text end :
(1) deleted text begin the entitydeleted text end uses its facilities or employees in this state to advertise, promote, or facilitate
the establishment or maintenance of a market for sales of items by the retailer to purchasers
in this state or for the provision of services to the retailer's purchasers in this state, such as
accepting returns of purchases for the retailer, providing assistance in resolving customer
complaints of the retailer, or providing other services; deleted text begin and
deleted text end
(2) deleted text begin the retailer and the entity are related parties.deleted text end new text begin has the same or a similar business name
to the retailer and sells, from a location or locations in this state, tangible personal property,
digital goods, or services, taxable under this chapter, that are similar to that sold by the
retailer;
new text end
new text begin
(3) maintains an office, distribution facility, salesroom, warehouse, storage place, or
other similar place of business in this state to facilitate the delivery of tangible personal
property, digital goods, or services sold by the retailer to its customers in this state;
new text end
new text begin
(4) maintains a place of business in this state and uses trademarks, service marks, or
trade names in this state that are the same or substantially similar to those used by the retailer,
and that use is done with the express or implied consent of the holder of the marks or names;
new text end
new text begin
(5) delivers, installs, or assembles tangible personal property in this state, or performs
maintenance or repair services on tangible personal property in this state, for tangible
personal property sold by the retailer;
new text end
new text begin
(6) facilitates the delivery of tangible personal property to customers of the retailer by
allowing the customers to pick up tangible personal property sold by the retailer at a place
of business the entity maintains in this state; or
new text end
new text begin
(7) shares management, business systems, business practices, or employees with the
retailer, or engages in intercompany transactions with the retailer related to the activities
that establish or maintain the market in this state of the retailer.
new text end
(b) Two entities are related parties under this section if one of the entities meets at least
one of the following tests with respect to the other entity:
(1) one or both entities is a corporation, and one entity and any party related to that entity
in a manner that would require an attribution of stock from the corporation to the party or
from the party to the corporation under the attribution rules of section 318 of the Internal
Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent
of the value of the corporation's outstanding stock;
(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary,
and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital,
stock, or value of the other entity or both entities; deleted text begin or
deleted text end
(3) an individual stockholder and the members of the stockholder's family (as defined
in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, or
constructively, in the aggregate, at least 50 percent of the value of both entities' outstanding
stockdeleted text begin .deleted text end new text begin ;
new text end
new text begin
(4) the entities are related within the meaning of subsections (b) and (c) of section 267
or 707(b)(1) of the Internal Revenue Code; or
new text end
new text begin
(5) the entities have one or more ownership relationships and the relationships were
designed with a principal purpose of avoiding the application of this section.
new text end
(c) An entity is an affiliate under the provisions of this subdivision if the requirements
of paragraphs (a) and (b) are met during any part of the 12-month period ending on the first
day of the month before the month in which the sale was made.
Sec. 6.
Minnesota Statutes 2016, section 297A.66, is amended by adding a subdivision to
read:
new text begin Subd. 4b. new text end
new text begin
Collection and remittance requirements for marketplace providers and
marketplace retailers.
new text end
new text begin
(a) A marketplace provider shall collect sales and use taxes and
remit them to the commissioner under section 297A.77 for all facilitated sales for a retailer,
and is subject to audit on the retail sales it facilitates unless either:
new text end
new text begin
(1) the retailer provides a copy of the retailer's registration to collect sales and use tax
in this state to the marketplace provider before the marketplace provider facilitates a sale;
or
new text end
new text begin
(2) upon inquiry by the marketplace provider or its agent, the commissioner discloses
that the retailer is registered to collect sales and use taxes in this state.
new text end
new text begin
(b) Nothing in this subdivision shall be construed to interfere with the ability of a
marketplace provider and a retailer to enter into an agreement regarding fulfillment of the
requirements of this chapter.
new text end
new text begin
(c) A marketplace provider is not liable under this subdivision for failure to file and
collect and remit sales and use taxes 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 end
Sec. 7.
Minnesota Statutes 2016, section 297A.67, subdivision 7a, is amended to read:
Subd. 7a.
Accessories and supplies.
Accessories and supplies required for the effective
use of durable medical equipment for home use only or purchased in a transaction covered
by Medicare deleted text begin ordeleted text end new text begin ,new text end Medicaid,new text begin or other health insurance plan,new text end that are not already exempt under
subdivision 7, are exempt. Accessories and supplies for the effective use of a prosthetic
device, that are not already exempt under subdivision 7, are exempt. For purposes of this
subdivision "durable medical equipment," "prosthetic device," "Medicare," and "Medicaid"
have the definitions given in subdivision 7deleted text begin .deleted text end new text begin , and "other health insurance plan" means a
health plan defined in section 62A.011, subdivision 3, or 62V.02, subdivision 4, or a qualified
health plan defined in section 62A.011, subdivision 7.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 8.
Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision to
read:
new text begin Subd. 34. new text end
new text begin Suite licenses. new text end
new text begin
The sale of the privilege of admission under section 297A.61,
subdivision 3, paragraph (g), clause (1), to a place of amusement or athletic event does not
include consideration paid for a license to use a private suite, private skybox, or private box
seat provided that: (1) the lessee may use the private suite, private skybox, or private box
seat by mutual arrangement with the lessor on days when there is no amusement or athletic
event; and (2) the sales price for the privilege of admission is separately stated and is equal
to or greater than the highest priced general admission ticket for the closest seat not in the
private suite, private skybox, or private box seat.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 9.
Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision to
read:
new text begin Subd. 35. new text end
new text begin Stadium builder's licenses. new text end
new text begin
The sale of the privilege of admission under
section 297A.61, subdivision 3, paragraph (g), clause (1), does not include consideration
paid for a stadium builder's license authorized under section 473J.15, subdivision 14.
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. 10.
Minnesota Statutes 2016, section 297A.68, subdivision 9, is amended to read:
Subd. 9.
Super Bowl admissionsnew text begin and related eventsnew text end .
new text begin (a) new text end The granting of the privilege
of admission to a world championship football game sponsored by the National Football
League deleted text begin isdeleted text end new text begin and to related events sponsored by the National Football League or its affiliates,
or the Minnesota Super Bowl Host Committee, arenew text end exempt.
new text begin
(b) The sale of nonresidential parking by the National Football League for attendance
at a world championship football game sponsored by the National Football League and for
related events sponsored by the National Football League or its affiliates, or the Minnesota
Super Bowl Host Committee, is exempt. Purchases of nonresidential parking services by
the Super Bowl Host Committee are purchases made exempt for retail.
new text end
new text begin
(c) For the purposes of this subdivision:
new text end
new text begin
(1) "related events sponsored by the National Football League or its affiliates" includes
but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL On
Location, and NFL House; and
new text end
new text begin
(2) "affiliates" does not include National Football League teams.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
The amendments to this section are effective for sales and
purchases made after June 30, 2016, and before March 1, 2018.
new text end
Sec. 11.
Minnesota Statutes 2016, section 297A.70, subdivision 11, is amended to read:
Subd. 11.
School tickets or admissions.
new text begin (a) new text end Tickets or admissions to regular season
school games, events, and activities are exempt. For purposes of this subdivision, "school"
has the meaning given it in section 120A.22, subdivision 4.
new text begin
(b) Tickets or admissions to games, events, and activities sponsored by the Minnesota
State High School League under chapter 128C are exempt.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
December 31, 2016, but before January 1, 2022.
new text end
Sec. 12.
Minnesota Statutes 2016, section 297A.70, subdivision 14, is amended to read:
Subd. 14.
Fund-raising events sponsored by nonprofit groups.
(a) Sales of tangible
personal property or services at, and admission charges for fund-raising events sponsored
by, a nonprofit organization are exempt if:
(1) all gross receipts are recorded as such, in accordance with generally accepted
accounting practices, on the books of the nonprofit organization; and
(2) the entire proceeds, less the necessary expenses for the event, will be used solely
and exclusively for charitable, religious, or educational purposes. Exempt sales include the
sale of prepared food, candy, and soft drinks at the fund-raising event.
(b) This exemption is limited in the following manner:
(1) it does not apply to admission charges for events involving bingo or other gambling
activities or to charges for use of amusement devices involving bingo or other gambling
activities;
(2) all gross receipts are taxable if the profits are not used solely and exclusively for
charitable, religious, or educational purposes;
(3) it does not apply unless the organization keeps a separate accounting record, including
receipts and disbursements from each fund-raising event that documents all deductions from
gross receipts with receipts and other records;
(4) it does not apply to any sale made by or in the name of a nonprofit corporation as
the active or passive agent of a person that is not a nonprofit corporation;
(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
(6) it does not apply to fund-raising events conducted on premises leased for more than
deleted text begin fivedeleted text end new text begin tennew text end days but less than 30 days; and
(7) it does not apply if the risk of the event is not borne by the nonprofit organization
and the benefit to the nonprofit organization is less than the total amount of the state and
local tax revenues forgone by this exemption.
(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
government, corporation, society, association, foundation, or institution organized and
operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans'
purposes, no part of the net earnings of which inures to the benefit of a private individual.
(d) For purposes of this subdivision, "fund-raising events" means activities of limited
duration, not regularly carried out in the normal course of business, that attract patrons for
community, social, and entertainment purposes, such as auctions, bake sales, ice cream
socials, block parties, carnivals, competitions, concerts, concession stands, craft sales,
bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows, festivals,
galas, special event workshops, sporting activities such as marathons and tournaments, and
similar events. Fund-raising events do not include the operation of a regular place of business
in which services are provided or sales are made during regular hours such as bookstores,
thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled classes, or
other activities carried out in the normal course of business.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
December 31, 2016.
new text end
Sec. 13.
Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:
new text begin Subd. 49. new text end
new text begin Siding production facility materials. new text end
new text begin
Building materials and supplies used
or consumed in, and equipment incorporated into, the expansion or renovation of an existing
wood products facility to convert it into a siding production facility that can produce at least
400,000,000 square feet of siding per year, including private infrastructure, are exempt. The
tax must be imposed and collected as if the rate under section 297A.62, subdivision 1,
applied, and then refunded in the manner provided in section 297A.75. This provision does
not exempt equipment that qualifies for exemption under section 297A.68, subdivision 5.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after January
1, 2017, and before July 1, 2020.
new text end
Sec. 14.
Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:
new text begin Subd. 50. new text end
new text begin Properties destroyed by fire. new text end
new text begin
Building materials and supplies used in, and
equipment incorporated into, the construction or replacement of real property that is located
in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed
and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded
in the manner provided in section 297A.75.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2016, and before July 1, 2018.
new text end
Sec. 15.
Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:
new text begin Subd. 51. new text end
new text begin Former Duluth Central High School. new text end
new text begin
Materials and supplies used in and
equipment incorporated into a private redevelopment project on the site of the former Duluth
Central High School are exempt, provided the resulting development is subject to property
taxes. The tax must be imposed and collected as if the rate under section 297A.62, subdivision
1, applied and then refunded in the manner provided in section 297A.75. The commissioner
must not pay more than $5,000,000 in refunds for purchases exempt under this section.
Refunds must be processed and issued in the order that complete and accurate applications
are received by the commissioner.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2016, and before January 1, 2018.
new text end
Sec. 16.
Minnesota Statutes 2016, section 297A.75, subdivision 1, is amended to read:
Subdivision 1.
Tax collected.
The tax on the gross receipts from the sale of the following
exempt items must be imposed and collected as if the sale were taxable and the rate under
section 297A.62, subdivision 1, applied. The exempt items include:
(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;
(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14;
(3) building materials for correctional facilities under section 297A.71, subdivision 3;
(4) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;
(5) elevators and building materials exempt under section 297A.71, subdivision 12;
(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;
(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;
(8) equipment and materials used for the generation, transmission, and distribution of
electrical energy and an aerial camera package exempt under section 297A.68, subdivision
37;
(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);
(10) materials, supplies, and equipment for construction or improvement of projects and
facilities under section 297A.71, subdivision 40;
(11) materials, supplies, and equipment for construction, improvement, or expansion
of:
(i) an aerospace defense manufacturing facility exempt under section 297A.71,
subdivision 42;
(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
45;
(iii) a research and development facility exempt under section 297A.71, subdivision 46;
and
(iv) an industrial measurement manufacturing and controls facility exempt under section
297A.71, subdivision 47;
(12) enterprise information technology equipment and computer software for use in a
qualified data center exempt under section 297A.68, subdivision 42;
(13) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44;
(14) items purchased for use in providing critical access dental services exempt under
section 297A.70, subdivision 7, paragraph (c); deleted text begin and
deleted text end
(15) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44new text begin ;
new text end
new text begin
(16) building materials and supplies, equipment incorporated into, and private
infrastructure for conversion of a wood products facility into a siding facility exempt under
section 291A.71, subdivision 49;
new text end
new text begin
(17) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 50; and
new text end
new text begin (18) materials and supplies used in and equipment incorporated into a private
redevelopment project exempt under section 297A.71, subdivision 51new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
Clause (16) is effective for sales and purchases made after January
1, 2017, and before July 1, 2020. Clause (17) is effective for sales and purchases made after
June 30, 2016, and before July 1, 2018. Clause (18) is effective for sales and purchases
made after June 30, 2016, and before January 1, 2018.
new text end
Sec. 17.
Minnesota Statutes 2016, section 297A.75, subdivision 2, is amended to read:
Subd. 2.
Refund; eligible persons.
Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
be paid to the applicant. Only the following persons may apply for the refund:
(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;
(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
property;
(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
joint venture of municipal electric utilities;
(7) for subdivision 1, clauses (8), (11), (12), deleted text begin anddeleted text end (15), new text begin and (16), new text end the owner of the
qualifying business; deleted text begin and
deleted text end
(8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the governmental
entity that owns or contracts for the project or facilitynew text begin ; and
new text end
new text begin (9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or developer
of the building or projectnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
The change to clause (7) is effective for sales and purchases made
after June 30, 2016. Clause (9) is effective for sales and purchases made after June 30, 2016,
and before July 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision
1, clause (17), and for sales and purchases made after June 30, 2016, and before January 1,
2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision 1, clause (18).
new text end
Sec. 18.
Minnesota Statutes 2016, section 297A.75, subdivision 3, is amended to read:
Subd. 3.
Application.
(a) The application must include sufficient information to permit
the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clauses (3) to (13), or (15)deleted text begin ,deleted text end new text begin to (18), new text end the contractor,
subcontractor, or builder must furnish to the refund applicant a statement including the cost
of the exempt items and the taxes paid on the items unless otherwise specifically provided
by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
this section.
(b) An applicant may not file more than two applications per calendar year for refunds
for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2016.
new text end
Sec. 19.
Minnesota Statutes 2016, section 297A.815, subdivision 3, is amended to read:
Subd. 3.
Motor vehicle lease sales tax revenue.
(a) For purposes of this subdivision,
"net revenue" means an amount equal to the revenues, including interest and penalties,
collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.
(b) On or before June 30 of each fiscal year, the commissioner of revenue shall estimate
the amount of the net revenue for the current fiscal year.
(c) On or after July 1 of the subsequent fiscal year, the commissioner of management
and budget shall transfer the net revenue as estimated in paragraph (b) from the general
fund, as follows:
(1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to the
county state-aid highway fund. Notwithstanding any other law to the contrary, the
commissioner of transportation shall allocate the funds transferred under this clause to the
counties in the metropolitan area, as defined in section 473.121, subdivision 4, excluding
the counties of Hennepin and Ramsey, so that each county shall receive of such amount the
percentage that its population, as defined in section 477A.011, subdivision 3, estimated or
established by July 15 of the year prior to the current calendar year, bears to the total
population of the counties receiving funds under this clause; and
(2) the remainder to the greater Minnesota transit account.
new text begin
(d) The revenues deposited under this subdivision do not include the revenues, including
interest and penalties, generated by the sales tax imposed under section 297A.62, subdivision
1a, which must be deposited as provided under the Minnesota Constitution, article XI,
section 15.
new text 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. 20.
Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003,
First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5,
section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
Subd. 2.
(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law,
ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
impose an additional sales tax of up to one and three-quarter percent on sales transactions
which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c).
The imposition of this tax shall not be subject to voter referendum under either state law or
city charter provisions. When the city council determines that the taxes imposed under this
paragraph at a rate of three-quarters of one percent and other sources of revenue produce
revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus
issuance and discount costs, issued for capital improvements at the Duluth Entertainment
and Convention Center, which include a new arena, the rate of tax under this subdivision
must be reduced by three-quarters of one percent.
(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section
477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of
Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent
on sales transactions which are described in Minnesota Statutes 2000, section 297A.01,
subdivision 3, clause (c). This tax expires when the city council determines that the tax
imposed under this paragraph, along with the tax imposed under section 22, paragraph (b),
has produced revenues sufficient to pay the debt service on bonds in a principal amount of
no more than $18,000,000, plus issuance and discount costs, to finance capital improvements
to public facilities to support tourism and recreational activities in that portion of the city
west of deleted text begin 34thdeleted text end new text begin 14thnew text end Avenue Westnew text begin and the area south of and including Skyline Parkwaynew text end .
(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation bonds
under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs of
issuance and any premiums. The proceeds may be used to finance capital improvements to
public facilities that support tourism and recreational activities in the portion of the city
west of deleted text begin 34thdeleted text end new text begin 14thnew text end Avenue Westnew text begin and the area south of and including Skyline Parkwaynew text end , as
described in paragraph (b). The issuance of the bonds is subject to the provisions of
Minnesota Statutes, chapter 475, except no election shall be required unless required by the
city charter. The bonds shall not be included in computing net debt. The revenues from the
taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph
(b), may be pledged to pay principal of and interest on such bonds.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 21.
Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article
8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws
2014, chapter 308, article 3, section 22, is amended to read:
Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.
(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance,
or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an
additional tax of one percent upon the gross receipts from the sale of lodging for periods of
less than 30 days in hotels and motels located in the city. The tax shall be collected in the
same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one.
The imposition of this tax shall not be subject to voter referendum under either state law or
city charter provisions.
(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section
477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of
Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent
on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and
motels located in the city. This tax expires when the city council first determines that the
tax imposed under this paragraph, along with the tax imposed under section 21, paragraph
(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount
of no more than $18,000,000, plus issuance and discount costs, to finance capital
improvements to public facilities to support tourism and recreational activities in that portion
of the city west of deleted text begin 34thdeleted text end new text begin 14thnew text end Avenue West new text begin and the area south of and including Skyline
Parkwaynew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 22.
Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws
1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and
Laws 2009, chapter 88, article 4, section 14, is amended to read:
Subd. 3.
Use of revenues.
new text begin (a) new text end Revenues received from taxes authorized by subdivisions
1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a
portion of the expenses of constructing and improving facilities as part of an urban
revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses
include, but are not limited to, acquiring property and paying relocation expenses related
to the development of Riverfront 2000 and related facilities, and securing or paying debt
service on bonds or other obligations issued to finance the construction of Riverfront 2000
and related facilities. For purposes of this section, "Riverfront 2000 and related facilities"
means a civic-convention center, an arena, a riverfront park, a technology center and related
educational facilities, and all publicly owned real or personal property that the governing
body of the city determines will be necessary to facilitate the use of these facilities, including
but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also
includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition
Center, for use by Minnesota State University, Mankato.
new text begin
(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
by voters at the November 8, 2016, general election, the city may by ordinance also use
revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000,
plus associated bond costs, to pay all or a portion of the expenses of the following capital
projects:
new text end
new text begin
(1) construction and improvements to regional recreational facilities including existing
hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal
swimming pool including improvements to make the pool compliant with the Americans
with Disabilities Act, and indoor regional athletic facilities;
new text end
new text begin
(2) improvements to flood control and the levee system;
new text end
new text begin
(3) water quality improvement projects in Blue Earth and Nicollet Counties;
new text end
new text begin
(4) expansion of the regional transit building and related multimodal transit
improvements;
new text end
new text begin
(5) regional public safety and emergency communications improvements and equipment;
and
new text end
new text begin
(6) matching funds for improvements to publicly owned regional facilities including a
historic museum, supportive housing, and a senior center.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 23.
Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws
2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366,
article 7, section 10, is amended to read:
Subd. 4.
Expiration of taxing authority and expenditure limitation.
The authority
granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall
expire deleted text begin ondeleted text end new text begin at the earlier of when revenues are sufficient to pay off the bonds, including
interest and all other associated bond costs authorized under subdivision 5, or new text end December
31, deleted text begin 2022deleted text end new text begin 2038new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment without
local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end
Sec. 24.
Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
Subd. 5.
Bonds.
new text begin (a) new text end The city of Mankato may issue general obligation bonds of the city
in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without
election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or
a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related
facilities shall not be included in computing any debt limitations applicable to the city of
Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest
on the bonds shall not be subject to any levy limitation or be included in computing or
applying any levy limitation applicable to the city.
new text begin
(b) The city of Mankato may issue general obligation bonds of the city in an amount not
to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), without
election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or
a tax to pay them. The debt represented by bonds under this paragraph shall not be included
in computing any debt limitations applicable to the city of Mankato, and the levy of taxes
required by Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds,
and shall not be subject to any levy limitation or be included in computing or applying any
levy limitation applicable to the city. The city may use tax revenue in excess of one year's
principal interest reserve for intended annual bond payments to pay all or a portion of the
cost of capital improvements authorized in subdivision 3.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment without
local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end
Sec. 25.
Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws
2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7,
article 4, section 4, is amended to read:
Subdivision 1.
Sales tax authorized.
(a) Notwithstanding Minnesota Statutes, section
477A.016, or any other contrary provision of law, ordinance, or city charter, the city of
Hermantown may, by ordinance, impose an additional sales tax of up to one percent on
sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within
the city. The proceeds of the tax imposed under this section must be used to new text begin pay the cost of
collection of the tax and to new text end meet the costsnew text begin , including principal, interest, and premiums of
bonds used in the finance new text end of:
(1) extending a sewer interceptor line;
(2) construction of a booster pump station, reservoirs, and related improvements to the
water system; deleted text begin and
deleted text end
(3) construction of a building containing a police and fire station and an administrative
services facilitynew text begin ; and
new text end
new text begin (4) construction and equipping of a regional, multiuse wellness centernew text end .
(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a),
it may increase the tax to one percent to fund the purposes under paragraph (a) provided it
is approved by the voters at a general election held before December 31, 2012.
new text begin
(c) Revenue raised from the tax imposed under this subdivision in every year must first
be used to meet obligations in that year related to the projects in paragraph (a), clauses (1)
to (3), with excess revenues available to fund the projects in paragraph (a), clause (4).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 26.
Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws
2006, chapter 259, article 3, section 4, is amended to read:
Subd. 4.
Termination.
The tax authorized under this section terminates deleted text begin on March 31,
2026deleted text end new text begin at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council
first determines that sufficient funds have been received from the tax to fund the costs,
including bonds and associated bond costs for the uses specified in subdivision 1, paragraph
(a)new text end . Any funds remaining after completion of the improvements and retirement or redemption
of the bonds may be placed in the general fund of the city.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment without
local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end
Sec. 27.
Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws
2008, chapter 366, article 7, section 12, is amended to read:
Subdivision 1.
Sales and use tax.
new text begin (a) new text end Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, if approved by the city
voters at the first municipal general election held after the date of final enactment of this
act or at a special election held November 2, 1999, the city of Proctor may impose by
ordinance a sales and use tax of up to one-half of one percent for the purposes specified in
subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
new text begin
(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional
sales and use tax of up to one-half of one percent as approved by the voters at the November
4, 2014, general election. The revenues received from the additional tax must be used for
the purposes specified in subdivision 3, paragraph (b).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3, but only if the local approval requirement under section 10 is also
met.
new text end
Sec. 28.
Laws 2008, chapter 366, article 7, section 20, is amended to read:
Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
Subdivision 1.
Sales and use tax authorized.
Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the
approval of the voters on November 7, 2006, the city of North Mankato may impose by
ordinance a sales and use tax of one-half of one percent for the purposes specified in
subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the taxes authorized under this subdivision.
Subd. 2.
Use of revenues.
Revenues received from the tax authorized by subdivision 1
must be used to pay all or part of the capital costs of the following projects:
(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange
project;
(2) development of regional parks and hiking and biking trailsnew text begin , including construction
of indoor regional athletic facilitiesnew text end ;
(3) expansion of the North Mankato Taylor Library;
(4) riverfront redevelopment; and
(5) lake improvement projects.
The total amount of revenues from the tax in subdivision 1 that may be used to fund
these projects is deleted text begin $6,000,000deleted text end new text begin $15,000,000new text end plus any associated bond costs.
new text begin Subd. 2a. new text end
new text begin Authorization to extend the tax. new text end
new text begin
Notwithstanding Minnesota Statutes, section
297A.99, subdivision 3, the North Mankato city council may, by resolution, extend the tax
authorized under subdivision 1 to cover an additional $15,000,000 in bonds, plus associated
bond costs, to fund the projects in subdivision 2 as approved by the voters at the November
8, 2016, general election.
new text end
Subd. 3.
Bonds.
(a) The city of North Mankato, pursuant to the approval of the voters
at the November 7, 2006 referendum authorizing the imposition of the taxes in this section,
may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
expenses for the projects described in subdivision 2, in an amount that does not exceed
$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section
475.58, is not required.
new text begin
(b) The city of North Mankato, pursuant to approval of the voters at the November 8,
2016, referendum extending the tax fee to provide additional revenue to be spent for the
projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter
475, to pay capital and administrative expenses for those projects in an amount that does
not exceed $15,000,000. A separate election to approve the bonds under Minnesota Statutes,
section 475.58, is not required.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end The debt represented by the bonds is not included in computing any debt limitation
applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to
pay principal and interest on the bonds is not subject to any levy limitation.
Subd. 4.
Termination of taxes.
The tax imposed under subdivision 1 expires deleted text begin when the
city council determines that the amount of revenues received from the taxes to pay for the
projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional amount
needed to pay the costs related to issuance of bonds under subdivision 3, including interest
on the bondsdeleted text end new text begin at the earlier of December 31, 2038, or when revenues from the taxes first
equal or exceed $21,000,000 plus the additional amount needed to pay costs related to
issuance of bonds under subdivision 3, including interestnew text end . Any funds remaining after
completion of the projects and retirement or redemption of the bonds shall be placed in a
capital facilities and equipment replacement fund of the city. The tax imposed under
subdivision 1 may expire at an earlier time if the city so determines by ordinance.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 29. new text begin CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Sales and use tax authorization. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, and as approved by the voters at a special election on March 7, 2016, the city of
East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent for
the purposes specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end
new text begin Subd. 2. new text end
new text begin Use of sales and use tax revenues. new text end
new text begin
The revenues derived from the tax authorized
under subdivision 1 must be used by the city of East Grand Forks to pay the costs of
collecting and administering the tax and to finance the capital and administrative costs of
improvement to the city public swimming pool. Authorized expenses include, but are not
limited to, paying construction expenses related to the renovation and the development of
these facilities and improvements, and securing and paying debt service on bonds issued
under subdivision 3 or other obligations issued to finance improvement of the public
swimming pool in the city of East Grand Forks
new text end
new text begin Subd. 3. new text end
new text begin Bonding authority. new text end
new text begin
(a) The city of East Grand Forks may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $2,820,000, plus an amount to be applied to the payment of
the costs of issuing the bonds. The bonds may be paid from or secured by any funds available
to the city of East Grand Forks, including the tax authorized under subdivision 1. The
issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60
and 275.61.
new text end
new text begin
(b) The bonds are not included in computing any debt limitation applicable to the city
of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, to
pay principal and interest on the bonds is not subject to any levy limitation. A separate
election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end
new text begin Subd. 4. new text end
new text begin Termination of taxes. new text end
new text begin
The tax imposed under subdivision 1 expires at the later
of: (1) five years after the tax is first imposed; or (2) when the city council determines that
$2,820,000 has been received from the tax to pay for the cost of the projects authorized
under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after compliance by the governing
body of the city of East Grand Forks with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
new text end
Sec. 30. new text begin CITY OF MARSHALL; VALIDATION OF PRIOR ACT.
new text end
new text begin
(a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
Marshall may approve Laws 2011, First Special Session chapter 7, article 4, section 14, and
file its approval with the secretary of state by June 15, 2013. If approved as authorized under
this paragraph, actions undertaken by the city as approved by the voters on November 6,
2012, and otherwise in accordance with Laws 2011, First Special Session chapter 7, article
4, section 14, are validated.
new text end
new text begin
(b) Notwithstanding the time limit on the imposition of tax under Laws 2011, First
Special Session chapter 7, article 4, section 14, and subject to local approval under paragraph
(a), the city of Marshall may impose the tax on or before July 1, 2013.
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. 31. new text begin CERTAIN REIMBURSEMENT AUTHORIZED; CONSIDERED
OPERATING OR CAPITAL EXPENSES.
new text end
new text begin Subdivision 1. new text end
new text begin Reimbursement authorized. new text end
new text begin
(a) An amount equivalent to the taxes paid
under Minnesota Statutes, chapter 297A, and any local taxes administered by the Department
of Revenue, on purchases of tangible personal property, nonresidential parking services,
and lodging, as these terms are defined in Minnesota Statutes, chapter 297A, used and
consumed in connection with Super Bowl LII or related events sponsored by the National
Football League or its affiliates, will be reimbursed by the Minnesota Sports Facilities
Authority up to $1,600,000, if made after June 30, 2016, and before March 1, 2018. Only
purchases made by the Minnesota Super Bowl Host Committee, the National Football
League or its affiliates, or their employees or independent contractors, qualify to be
reimbursed under this section.
new text end
new text begin
(b) For purposes of this subdivision:
new text end
new text begin
(1) "employee or independent contractor" means only those employees or independent
contractors that make qualifying purchases that are reimbursed by the Minnesota Super
Bowl Host Committee or the National Football League or its affiliates; and
new text end
new text begin
(2) "related events sponsored by the National Football League or its affiliates" includes
but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL Honors,
and NFL House.
new text end
new text begin Subd. 2. new text end
new text begin Operating reserve and capital reserve fund. new text end
new text begin
Notwithstanding the requirements
of Minnesota Statutes, section 473J.13, subdivisions 2 and 4, up to $1,600,000 of the balance
in the operating reserve or capital reserve fund may be used for the purposes of paying
reimbursements authorized under subdivision 1.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2016, and before March 1, 2018.
new text end
Sec. 32. new text begin SEVERABILITY.
new text end
new text begin
If any provision of sections 3 to 6 or the application thereof is held invalid, such invalidity
shall not affect the provisions or applications of the sections that can be given effect without
the invalid provisions or applications.
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. 33. new text begin EFFECTIVE DATE.
new text end
new text begin
(a) The provisions of sections 3 to 6 are effective at the earlier of:
new text end
new text begin
(1) a decision by the United States Supreme Court modifying its decision in Quill Corp.
v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a physical
presence in the state to collect and remit sales tax; or
new text end
new text begin
(2) July 1, 2020.
new text end
new text begin
(b) Notwithstanding paragraph (a) or the provisions of sections 3 to 6, if a federal law
is enacted authorizing a state to impose a requirement to collect and remit sales tax on
retailers without a physical presence in the state, the commissioner must enforce the
provisions of this section and sections 3 to 6 to the extent allowed under federal law.
new text end
new text begin
(c) The commissioner of revenue shall notify the revisor of statutes when either of the
provisions in paragraph (a) or (b) apply.
new text end
ARTICLE 5
SPECIAL TAXES
Section 1.
Minnesota Statutes 2016, section 296A.01, subdivision 12, is amended to read:
Subd. 12.
Compressed natural gas or CNG.
"Compressed natural gas" or "CNG"
means natural gas, primarily methane, condensed under high pressure and stored in specially
designed storage tanks at between 2,000 and 3,600 pounds per square inch. For purposes
of this chapter, the energy content of CNG is considered to be deleted text begin 1,000deleted text end new text begin 900 new text end BTUs per cubic
foot.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 2.
Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to
read:
new text begin Subd. 13a. new text end
new text begin Dealer of gasoline used as a substitute for aviation gasoline. new text end
new text begin
"Dealer of
gasoline used as a substitute for aviation gasoline" means any person who sells gasoline on
the premises of an airport as defined under section 360.013, subdivision 39, to be dispensed
directly into the fuel tank of an aircraft.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 3.
Minnesota Statutes 2016, section 296A.07, subdivision 4, is amended to read:
Subd. 4.
Exemptions.
The provisions of subdivision 1 do not apply to gasoline or
denatured ethanol purchased by:
(1) a transit system or transit provider receiving financial assistance or reimbursement
under section 174.24, 256B.0625, subdivision 17, or 473.384;
(2) providers of transportation to recipients of medical assistance home and
community-based services waivers enrolled in day programs, including adult day care,
family adult day care, day treatment and habilitation, prevocational services, and structured
day services;
(3) an ambulance service licensed under chapter 144E;
(4) providers of medical or dental services by a federally qualified health center, as
defined under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus
Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a mobile
medical unit; deleted text begin or
deleted text end
(5) a licensed distributor to be delivered to a terminal for use in blendingnew text begin ; or
new text end
new text begin (6) a dealer of gasoline used as a substitute for aviation gasolinenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 4.
Minnesota Statutes 2016, section 296A.08, subdivision 2, is amended to read:
Subd. 2.
Rate of tax.
The special fuel excise tax is imposed at the following rates:
(a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.
(b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
(c) Compressed natural gas is taxed at the rate of deleted text begin $2.174deleted text end new text begin $1.974new text end per thousand cubic feet;
or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent,"
as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural
gasnew text begin or 126.67 cubic feetnew text end .
(d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified
in section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed
by the commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 5.
Minnesota Statutes 2016, section 296A.09, subdivision 1, is amended to read:
Subdivision 1.
Gasoline tax imposed.
Subject to any refunds or credits there is imposed
an excise tax, at the rate of five cents per gallon on all aviation gasoline received, sold,
stored, or withdrawn from storage in this statenew text begin and on all gasoline used as a substitute for
aviation gasolinenew text end . Aviation gasoline is defined in section 296A.01, subdivision 7.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 6.
Minnesota Statutes 2016, section 296A.09, subdivision 3, is amended to read:
Subd. 3.
Exception to tax for aviation use.
The provisions of subdivisions 1 and 2 do
not apply to new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasolinenew text begin ,new text end or special
fuel purchased and placed in the fuel tanks of an aircraft outside the state, even though the
gasoline may be consumed within this state.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 7.
Minnesota Statutes 2016, section 296A.09, subdivision 5, is amended to read:
Subd. 5.
Tax not on consumption.
The taxes imposed by subdivisions 1 and 2 are
expressly declared not to be a tax upon consumption of new text begin gasoline used as a substitute for
aviation gasoline, new text end aviation gasolinenew text begin ,new text end or special fuel by an aircraft.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 8.
Minnesota Statutes 2016, section 296A.09, subdivision 6, is amended to read:
Subd. 6.
Exemptions.
The provisions of subdivisions 1 and 2 do not apply to new text begin gasoline
used as a substitute for aviation gasoline, new text end aviation gasolinenew text begin ,new text end or jet fuel purchased by an
ambulance service licensed under chapter 144E.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 9.
Minnesota Statutes 2016, section 296A.15, subdivision 1, is amended to read:
Subdivision 1.
Monthly gasoline report; shrinkage allowance.
(a) Except as provided
in paragraph (e), on or before the 23rd day of each month, every person who is required to
pay a gasoline tax shall file with the commissioner a report, in the form and manner
prescribed by the commissioner, showing the number of gallons of petroleum products
received by the reporter during the preceding calendar month, and other information the
commissioner may require. A written report is deemed to have been filed as required in this
subdivision if postmarked on or before the 23rd day of the month in which the tax is payable.
(b) The number of gallons of gasoline must be reported in United States standard liquid
gallons, 231 cubic inches, except that the commissioner may upon written application and
for cause shown permit the distributor to report the number of gallons of gasoline as corrected
to a temperature of 60-degrees Fahrenheit. If the application is granted, all gasoline covered
in the application and allowed by the commissioner must continue to be reported by the
distributor on the adjusted basis for a period of one year from the date of the granting of
the application. The number of gallons of petroleum products other than gasoline must be
reported as originally invoiced. Each report must show separately the number of gallons of
aviation gasoline received by the reporter during each calendar monthnew text begin and the number of
gallons of gasoline sold to a dealer of gasoline used as a substitute for aviation fuel during
each calendar monthnew text end .
(c) Each report must also include the amount of gasoline tax on gasoline received by
the reporter during the preceding month. In computing the tax a deduction of 2.5 percent
of the quantity of gasoline received by a distributor shall be made for evaporation and loss.
At the time of reporting, the reporter shall submit satisfactory evidence that one-third of the
2.5 percent deduction has been credited or paid to dealers on quantities sold to them.
(d) Each report shall contain a confession of judgment for the amount of the tax shown
due to the extent not timely paid.
(e) Under certain circumstances and with the approval of the commissioner, taxpayers
may be allowed to file reports annually.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 10.
Minnesota Statutes 2016, section 296A.15, subdivision 4, is amended to read:
Subd. 4.
Failure to use or sell for intended purpose; report required.
(a) Any person
who buys new text begin gasoline from a dealer of gasoline used as a substitute for aviation gasoline, or
buys new text end aviation gasoline or special fuel for aircraft use and who has paid the excise taxes due
directly or indirectly through the amount of the tax being included in the price, or otherwise,
and uses said gasoline or special fuel in motor vehicles or knowingly sells it to any person
for use in motor vehicles shall, on or before the 23rd day of the month following that in
which such gasoline or special fuel was so used or sold, report the fact of the use or sale to
the commissioner in the form and manner prescribed by the commissioner.
(b) Any person who buys gasoline other than aviation gasoline and who has paid the
motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being
included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to
any person to be used for the purpose of producing or generating power for propelling
aircraft, or who receives, stores, or withdraws from storage gasoline to be used for that
purpose, shall, on or before the 23rd day of the month following that in which such gasoline
was so sold, stored, or withdrawn from storage, report the fact of the sale, storage, or
withdrawal from storage to the commissioner in the form and manner prescribed by the
commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 11.
Minnesota Statutes 2016, section 296A.17, subdivision 1, is amended to read:
Subdivision 1.
Aviation refund requirements.
Any person claiming to be entitled to
any refund or credit provided for in subdivision 3 shall receive the refund or credit upon
filing with the commissioner a claim in such form and manner prescribed by the
commissioner. The claim shall set forth, among other things, the total number of gallons of
new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasolinenew text begin ,new text end or special fuel for
aircraft use upon which the claimant has directly or indirectly paid the excise tax provided
for in this chapter, during the calendar year, which has been received, stored, or withdrawn
from storage by the claimant in this state and not sold or otherwise disposed of to others.
All claims for refunds under this subdivision shall be made on or before April 30 following
the end of the calendar year for which the refund is claimed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 12.
Minnesota Statutes 2016, section 296A.17, subdivision 2, is amended to read:
Subd. 2.
Claim for refund; aviation tax.
(a) Any person who buys new text begin gasoline used as a
substitute for aviation gasoline, new text end aviation gasolinenew text begin ,new text end or special fuel for aircraft use and who
has paid the excise taxes directly or indirectly through the amount of the tax being included
in the price, or otherwise, who does not use it in motor vehicles or receive, sell, store, or
withdraw it from storage for the purpose of producing or generating power for propelling
aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing with the
commissioner a claim in the form and manner prescribed by the commissioner. The claim
shall state the total amount of the new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasolinenew text begin ,new text end or special fuel for aircraft use purchased and used by the applicant, and shall state
when and for what purpose it was used. On being satisfied that the claimant is entitled to
payment, the commissioner shall approve the claim and transmit it to the commissioner of
management and budget. The postmark on the envelope in which a written claim is mailed
determines the date of filing.
(b) If a claim contains an error in preparation in computation or preparation, the
commissioner is authorized to adjust the claim in accordance with the evidence shown on
the claim or other information available to the commissioner.
(c) An applicant who files a claim that is false or fraudulent, is subject to the penalties
provided in section 296A.23 for knowingly and willfully making a false claim.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 13.
Minnesota Statutes 2016, section 296A.17, subdivision 3, is amended to read:
Subd. 3.
Refund on graduated basis.
Any person who has directly or indirectly paid
the excise tax on new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasolinenew text begin ,new text end or
special fuel for aircraft use provided for by this chapter and new text begin either paid new text end the airflight property
tax under section 270.072 new text begin or is an aerial applicator with a category B, general aerial license,
under section 18B.33, new text end shall, as to all such new text begin gasoline used as a substitute for aviation gasoline,
new text end aviation gasolinenew text begin ,new text end and special fuel received, stored, or withdrawn from storage by the person
in this state in any calendar year and not sold or otherwise disposed of to others, or intended
for sale or other disposition to others, on which such tax has been so paid, be entitled to the
following graduated reductions in such tax for that calendar year, to be obtained by means
of the following refunds:
(1) on each gallon of deleted text begin suchdeleted text end new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasolinenew text begin ,new text end or special fuel up to 50,000 gallons, all but five cents per gallon;
(2) on each gallon of deleted text begin suchdeleted text end new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasolinenew text begin ,new text end or special fuel above 50,000 gallons and not more than 150,000 gallons, all but
two cents per gallon;
(3) on each gallon of deleted text begin suchdeleted text end new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasolinenew text begin ,new text end or special fuel above 150,000 gallons and not more than 200,000 gallons, all but
one cent per gallon;
(4) on each gallon of deleted text begin suchdeleted text end new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasolinenew text begin ,new text end or special fuel above 200,000, all but one-half cent per gallon.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 14.
Minnesota Statutes 2016, section 296A.18, subdivision 1, is amended to read:
Subdivision 1.
Intent; gasoline use.
All gasoline received in this state and all gasoline
produced in or brought into this state except aviation gasolinenew text begin , gasoline sold to a dealer of
gasoline used as a substitute for aviation gasoline,new text end and marine gasoline shall be determined
to be intended for use in motor vehicles in this state.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 15.
Minnesota Statutes 2016, section 296A.18, subdivision 8, is amended to read:
Subd. 8.
Airports.
The revenues derived from the excise taxes on new text begin gasoline used as a
substitute for aviation gasoline, new text end aviation gasolinenew text begin ,new text end and on special fuel received, sold, stored,
or withdrawn from storage as substitutes for aviation gasoline, shall be paid into the state
treasury and credited to the state airports fund. There is hereby appropriated such sums as
are needed to carry out the provisions of this subdivision.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 16.
Minnesota Statutes 2016, section 296A.19, subdivision 1, is amended to read:
Subdivision 1.
Retention.
All distributors, dealers, special fuel dealers, bulk purchasersnew text begin ,
dealers of gasoline used as a substitute for aviation gasolinenew text end , and all users of special fuel
shall keep a true and accurate record of all purchases, transfers, sales, and use of petroleum
products and special fuel, including copies of all sales tickets issued, in a form and manner
approved by the commissioner, and shall retain all such records for 3-1/2 years.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 17.
Minnesota Statutes 2016, section 297F.01, is amended by adding a subdivision
to read:
new text begin Subd. 6a. new text end
new text begin Bulk nicotine. new text end
new text begin
"Bulk nicotine" means any vapor product that contains a
solution having a concentration of 50 milligrams of nicotine per milliliter or greater.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2018.
new text end
Sec. 18.
Minnesota Statutes 2016, section 297F.01, is amended by adding a subdivision
to read:
new text begin Subd. 6b. new text end
new text begin Consumable material. new text end
new text begin
"Consumable material" means any vapor product that
contains nicotine in a solution having a concentration of less than 50 milligrams of nicotine
per milliliter.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2018.
new text end
Sec. 19.
Minnesota Statutes 2016, section 297F.01, subdivision 19, is amended to read:
Subd. 19.
Tobacco products.
(a) "Tobacco products" means any product containing,
made, or derived from tobacco that is intended for human consumption, whether chewed,
smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or
any component, part, or accessory of a tobacco product, including, but not limited to, cigars;
cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking
tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing
tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco,new text begin vapor products,new text end
and other kinds and forms of tobacco; but does not include cigarettes as defined in this
section. Tobacco products excludes any tobacco product that has been approved by the
United States Food and Drug Administration for sale as a tobacco cessation product, as a
tobacco dependence product, or for other medical purposes, and is being marketed and sold
solely for such an approved purpose.
(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco
products includes a premium cigar, as defined in subdivision 13a.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2018.
new text end
Sec. 20.
Minnesota Statutes 2016, section 297F.01, is amended by adding a subdivision
to read:
new text begin Subd. 24. new text end
new text begin Vapor products. new text end
new text begin
"Vapor products" means any noncombustible product that
employs a heating element, power source, electronic circuit, or other electronic, chemical,
or mechanical means, regardless of shape or size, that can be used to produce vapor from
nicotine in a solution or other form. Vapor products includes any electronic cigarette,
electronic cigar, electronic cigarillo, electronic pipe, or similar product or device and any
vapor cartridge or other container of bulk nicotine or consumable material in a solution or
other form that is intended to be used with or in an electronic cigarette, electronic cigar,
electronic cigarillo, electronic pipe, or similar product or device.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2018.
new text end
Sec. 21.
Minnesota Statutes 2016, section 297F.05, subdivision 1, is amended to read:
Subdivision 1.
Rates; cigarettes.
A tax is imposed upon the sale of cigarettes in this
state, upon having cigarettes in possession in this state with intent to sell, upon any person
engaged in business as a distributor, and upon the use or storage by consumers, at the rate
of deleted text begin 141.5deleted text end new text begin 152new text end mills, or deleted text begin 14.15deleted text end new text begin 15.2new text end cents, on each cigarette.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2018.
new text end
Sec. 22.
Minnesota Statutes 2016, section 297F.05, subdivision 3, is amended to read:
Subd. 3.
Rates; tobacco products.
(a) Except as provided in deleted text begin subdivisiondeleted text end new text begin subdivisionsnew text end
3anew text begin and 3bnew text end , a tax is imposed upon all tobacco products in this state and upon any person
engaged in business as a distributor, at the rate of 95 percent of the wholesale sales price
of the tobacco products. The tax is imposed at the time the distributor:
(1) brings, or causes to be brought, into this state from outside the state tobacco products
for sale;
(2) makes, manufactures, or fabricates tobacco products in this state for sale in this state;
or
(3) ships or transports tobacco products to retailers in this state, to be sold by those
retailers.
(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a pack
of 20 cigarettes weighing not more than three pounds per thousand, as established under
subdivision 1, is imposed on each container of moist snuff.
For purposes of this subdivision, a "container" means the smallest consumer-size can,
package, or other container that is marketed or packaged by the manufacturer, distributor,
or retailer for separate sale to a retail purchaser. When more than one container is packaged
together, each container is subject to tax.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2018.
new text end
Sec. 23.
Minnesota Statutes 2016, section 297F.05, is amended by adding a subdivision
to read:
new text begin Subd. 3b. new text end
new text begin Rates; vapor products. new text end
new text begin
(a) A tax is imposed upon all vapor products in this
state and upon any person engaged in business as a tobacco product distributor. The tax
imposed under this subdivision is imposed at the time the tobacco products distributor:
new text end
new text begin
(1) brings, or causes to be brought, into this state vapor products for sale;
new text end
new text begin
(2) makes, manufactures, or fabricates vapor products in this state, not otherwise taxed
under this subdivision, for sale in this state; or
new text end
new text begin
(3) ships or transports vapor products to retailers in this state to be sold by those retailers.
new text end
new text begin
(b) For vapor products that contain bulk nicotine, the rate of tax is 300 percent of the
wholesale sales price of the vapor product.
new text end
new text begin
(c) For vapor products that contain consumable material, the rate of tax is 45 percent of
the wholesale sales price of the vapor product.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2018.
new text end
Sec. 24.
Minnesota Statutes 2016, section 297F.05, is amended by adding a subdivision
to read:
new text begin Subd. 4b. new text end
new text begin Use tax; vapor products. new text end
new text begin
A tax is imposed upon the use or storage by
consumers of all vapor products in this state, and upon such consumers, at the rate of 300
percent of the wholesale sales price of a vapor product containing bulk nicotine, and 45
percent of the wholesale sales price of a vapor product containing consumable material.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2018.
new text end
Sec. 25.
Minnesota Statutes 2016, section 297H.04, subdivision 2, is amended to read:
Subd. 2.
Rate.
(a) Commercial generators that generate nonmixed municipal solid waste
shall pay a solid waste management tax of 60 cents per noncompacted cubic yard of periodic
waste collection capacity purchased by the generator, based on the size of the container for
the nonmixed municipal solid waste, the actual volume, or the weight-to-volume conversion
schedule in paragraph (c). However, the tax must be calculated by the waste management
service provider using the same method for calculating the waste management service fee
so that both are calculated according to container capacity, actual volume, or weight.
(b) Notwithstanding section 297H.02, a residential generator that generates nonmixed
municipal solid waste shall pay a solid waste management tax in the same manner as provided
in paragraph (a).
(c) The weight-to-volume conversion schedule for:
(1) construction debris as defined in section 115A.03, subdivision 7, is deleted text begin one ton equals
3.33 cubic yards, or $2 per tondeleted text end new text begin equal to 60 cents per cubic yard. The commissioner of
revenue, after consultation with the commissioner of the Pollution Control Agency, shall
determine and may publish by notice a conversion schedule for construction debrisnew text end ;
(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to 60 cents
per cubic yard. The commissioner of revenue after consultation with the commissioner of
the Pollution Control Agency, shall determine, and may publish by notice, a conversion
schedule for various industrial wastes; and
(3) infectious waste as defined in section 116.76, subdivision 12, and pathological waste
as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or 60
cents per 150 pounds.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2017.
new text end
Sec. 26. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2016, section 297F.05, subdivision 1a,
new text end
new text begin
is repealed.
new text end
new text begin
(b)
new text end
new text begin
Minnesota Rules, part 8125.1300, subpart 3,
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 January 1, 2017.
new text end
ARTICLE 6
MINERALS
Section 1.
Minnesota Statutes 2016, section 298.24, is amended by adding a subdivision
to read:
new text begin Subd. 5. new text end
new text begin TEDF; deposits redirected. new text end
new text begin
(a) For concentrates produced by a plant subject
to a reimbursement agreement dated September 9, 2008, by and among Itasca County, Essar
Global Limited, and Minnesota Steel Industries LLC, the provisions of sections 298.227
and 298.28, subdivision 9a, do not apply to the plant's production.
new text end
new text begin
(b) All amounts not deposited in the taconite economic development fund as a result of
paragraph (a) must be deposited in the Douglas J. Johnson economic protection trust fund
created under section 298.292.
new text end
new text begin
(c) The provisions of this subdivision expire upon certification by the commissioner of
employment and economic development that all requirements of the reimbursement
agreement, as specified in paragraph (a), are satisfied.
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. 2.
Minnesota Statutes 2016, section 298.28, subdivision 3, is amended to read:
Subd. 3.
Cities; towns.
(a) 12.5 cents per taxable ton, less any amount distributed under
subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account
to be distributed as provided in section 298.282.
(b) An amount must be allocated to towns or cities that is annually certified by the county
auditor of a county containing a taconite tax relief area as defined in section 273.134,
paragraph (b), within which there is (1) an organized township if, as of January 2, 1982,
more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a
city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city
consists of iron ore.
(c) The amount allocated under paragraph (b) will be the portion of a township's or city's
certified levy equal to the proportion of (1) the difference between 50 percent of January
2, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980,
assessed value in the case of a city and its current assessed value to (2) the sum of its current
assessed value plus the difference determined in (1), provided that the amount distributed
shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a
city. For purposes of this limitation, population will be determined according to the 1980
decennial census conducted by the United States Bureau of the Census. If the current assessed
value of the township exceeds 50 percent of the township's January 2, 1982, assessed value,
or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980,
assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed
value," when used in reference to years other than 1980 or 1982, means the appropriate net
tax capacities multiplied by 10.2.
(d) In addition to other distributions under this subdivision, deleted text begin threedeleted text end new text begin 3.25new text end cents per taxable
ton for distributions in deleted text begin 2009deleted text end new text begin 2017 and subsequent yearsnew text end must be allocated for distribution
to new text begin (1) new text end towns that are entirely located within the taconite tax relief area defined in section
273.134, paragraph (b)new text begin ; and (2) the following unorganized territories in St. Louis County
and Itasca County: 56-17; 58-22; 59-16; 59-21; 60-18; and 60-19new text end . For deleted text begin distribution in 2010
through 2014 and for distributiondeleted text end new text begin distributionsnew text end in 2018 and subsequent years, the deleted text begin three-centdeleted text end new text begin
3.25-centnew text end amount must be annually increased in the same proportion as the increase in the
implicit price deflator as provided in section 298.24, subdivision 1. The amount available
under this paragraph deleted text begin willdeleted text end new text begin mustnew text end be distributed to eligible towns new text begin and eligible unorganized
territories new text end on a per capita basis, provided that no town new text begin or unorganized territory new text end may receive
more than $50,000 in any year under this paragraph. Any amount of the distribution that
exceeds the $50,000 limitation for a town new text begin or unorganized territory new text end under this paragraph
must be redistributed on a per capita basis among the other eligible townsnew text begin and eligible
unorganized territoriesnew text end , to whose distributions do not exceed $50,000. new text begin The amount available
to unorganized territories in St. Louis County and Itasca County may be held by the county
and combined for public infrastructure projects for the specified unorganized territories.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for distributions beginning in 2017 and
thereafter.
new text end
Sec. 3.
Minnesota Statutes 2016, section 298.28, subdivision 5, is amended to read:
Subd. 5.
Counties.
(a) 21.05 cents per taxable ton for distributions in 2015 through 2023,
and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties
to be distributed, based upon certification by the commissioner of revenue, under paragraphs
(b) to (d).
(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite
is mined or quarried or in which the concentrate is produced, less any amount which is to
be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision
2 is the basis for the distribution.
(c) deleted text begin Ifdeleted text end new text begin 1.0 cent per taxable ton of the tax distributed to the counties pursuant to paragraph
(b) shall be paid to a county that received a distribution under this section in 2000 because
there was located in the county new text end an electric power plant owned by and providing the primary
source of power for a taxpayer mining and concentrating taconite deleted text begin is locateddeleted text end in a new text begin different
new text end county deleted text begin other than the county in which the mining and the concentrating processes are
conducted, one cent per taxable ton of the tax distributed to the counties pursuant to paragraph
(b) and imposed on and collected from such taxpayer shall be paid to the county in which
the power plant is locateddeleted text end .
(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents
per taxable ton for distributions beginning in 2024, shall be paid to the county from which
the taconite was mined, quarried or concentrated to be deposited in the county road and
bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those
processes are carried on in more than one county, the commissioner shall follow the
apportionment formula prescribed in subdivision 2.
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 2016, section 298.28, subdivision 7a, is amended to read:
Subd. 7a.
Iron Range school consolidation and cooperatively operated school account.
(a) The following amounts must be allocated to the Iron Range Resources and Rehabilitation
Board to be deposited in the Iron Range school consolidation and cooperatively operated
school account that is hereby created:
(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed
under section 298.24; and
(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
under section 298.24;
(2) the amount as determined under section 298.17, paragraph (b), clause (3);
(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J.
Johnson economic protection trust fund;
(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased
tax proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third
to be distributed to the Douglas J. Johnson economic protection trust fund; and
(iii) for distributions in 2017new text begin and thereafternew text end , an amount equal to two-thirds of the sum
of the increased tax proceeds attributable to the increase in the implicit price deflator as
provided in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with
the remaining one-third to be distributed to the Douglas J. Johnson economic protection
trust fund; and
(4) any other amount as provided by law.
(b) Expenditures from this account shall be made only to provide disbursements to assist
school districts with the payment of bonds that were issued for qualified school projects,
or for any other school disbursement as approved by the Iron Range Resources and
Rehabilitation Board. For purposes of this section, "qualified school projects" means school
projects within the taconite assistance area as defined in section 273.1341, that were (1)
approved, by referendum, after April 3, 2006; and (2) approved by the commissioner of
education pursuant to section 123B.71.
(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
any reduction in debt service equalization aid that the school district qualifies for in that
year, under section 123B.53, subdivision 6, compared with the amount the school district
qualified for in fiscal year 2018.
(d) No expenditure under this section shall be made unless approved by seven members
of the Iron Range Resources and Rehabilitation Board.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for distributions beginning in 2018 and
thereafter.
new text end
Sec. 5.
Laws 2010, chapter 216, section 58, as amended by Laws 2010, chapter 347, article
7, section 1, and Laws 2010, chapter 389, article 7, section 20, is amended to read:
Sec. 58. 2010 DISTRIBUTIONS ONLY.
For distributions in 2010 only, a special fund is established to receive the sum of the
following amounts that otherwise would be allocated under Minnesota Statutes, section
298.28, subdivision 6. The following amounts are allocated to St. Louis County acting as
the fiscal agent for the recipients for the specific purposes:
(1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide incentives
for at least two dentists to establish dental practices in high-need areas of the taconite tax
relief area;
(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal
heat at the Olcott Park Greenhouse/Virginia Commons project;
(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety repairs
at the Miners Memorial;
(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction of
Highway 142/Grant and Park Avenues;
(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for upgrades
and capital improvements to the public arena in Coleraine;
(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and
pumphouse modifications;
(7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial
claims for water damage due to water and flood-related damage caused by the Canisteo Pit;
(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and child
care center;
(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer upgrades;
(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and library
project;
(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of water
and sewer services for Lakewood Housing;
(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at the
Children's Museum;
(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil
corrections. This amount must be matched by local sources;
(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
(16) 0.159 cent per ton must be paid to Aitkin County for a trail;
(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road railroad
crossing;
(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and striping
of the community center parking lot;
(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure improvements,
milling, and overlay for Summit Street between Alaska Avenue and Highway 135;
(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main
replacements and improvements in the Northeast Lower Alley area;
(22) 0.637 cent per ton must be paid to the town of White for replacement of the Stepetz
Road culvert;
(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon
Street and associated infrastructure;
(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site improvements
at the Park Ridge development;
(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure and
site preparation for its renewable and sustainable energy park;
(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer
improvements;
(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road rebuilding
for the Summit Addition;
(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility
improvements;
(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and sewer
infrastructure improvements;
(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer
improvements;
(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge
improvements and land purchase, provided that if the city sells or otherwise disposes of any
of the land purchased with the money provided under this clause within a period of deleted text begin tendeleted text end new text begin fivenew text end
years after it was purchased, the city must transfer a portion of the proceeds of the sale equal
to the amount of the purchase price paid from the money provided under this clause to the
commissioner of Iron Range Resources and Rehabilitation for deposit in the taconite
environmental protection fund to be used for the purposes of the fund under Minnesota
Statutes, section 298.223;
(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer
improvements;
(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer
improvements;
(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer
improvements;
(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer
improvements;
(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure
improvements;
(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure
improvements;
(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project
infrastructure improvements;
(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety
improvements at the athletic facility;
(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street
improvements;
(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for infrastructure
related to a housing development;
(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;
(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to a nonprofit
for a signage kiosk;
(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer lines
and adjacent development near County State-Aid Highway 24; and
(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic wall
infrastructure around the athletic complex.
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. new text begin CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED
TACONITE TAX PROCEEDS.
new text end
new text begin
The commissioner of Iron Range Resources and Rehabilitation may use any unspent
amounts allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause
(19), remaining as of May 22, 2016, for the specific purposes identified in that section.
Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a), or any
other law to the contrary, interest accrued on this amount shall also be distributed to the
recipient. Amounts under this section are available until expended and do not lapse or cancel
under Minnesota Statutes, section 16A.28.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from May 22, 2016.
new text end
ARTICLE 7
LOCAL DEVELOPMENT
Section 1.
Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Activities" means acquisition of property, clearing of land, site preparation, soils
correction, removal of hazardous waste or pollution, installation of utilities, construction
of public or private improvements, and other similar activities, but only to the extent that
tax increment revenues may be spent for such purposes under other law.
(c) "Third party" means an entity other than (1) the person receiving the benefit of
assistance financed with tax increments, or (2) the municipality or the development authority
or other person substantially under the control of the municipality.
(d) "Revenues derived from tax increments paid by properties in the district" means only
tax increment as defined in section 469.174, subdivision 25, clause (1), and does not include
tax increment as defined in section 469.174, subdivision 25, clauses (2)deleted text begin , (3), and (4)deleted text end new text begin to (5)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. 2.
Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read:
Subd. 2.
Expenditures outside district.
(a) For each tax increment financing district,
an amount equal to at least 75 percent of the total revenue derived from tax increments paid
by properties in the district must be expended on activities in the district or to pay bonds,
to the extent that the proceeds of the bonds were used to finance activities in the district or
to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other
than redevelopment districts for which the request for certification was made after June 30,
1995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not
more than 25 percent of the total revenue derived from tax increments paid by properties
in the district may be expended, through a development fund or otherwise, on activities
outside of the district but within the defined geographic area of the project except to pay,
or secure payment of, debt service on credit enhanced bonds. For districts, other than
redevelopment districts for which the request for certification was made after June 30, 1995,
the pooling percentage for purposes of the preceding sentence is 20 percent. The deleted text begin revenuedeleted text end new text begin
revenuesnew text end derived from tax increments deleted text begin fordeleted text end new text begin paid by properties innew text end the district that are expended
on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
calculating the percentages that must be expended within and without the district.
(b) In the case of a housing district, a housing project, as defined in section 469.174,
subdivision 11, is an activity in the district.
(c) All administrative expenses are for activities outside of the district, except that if the
only expenses for activities outside of the district under this subdivision are for the purposes
described in paragraph (d), administrative expenses will be considered as expenditures for
activities in the district.
(d) The authority may elect, in the tax increment financing plan for the district, to increase
by up to ten percentage points the permitted amount of expenditures for activities located
outside the geographic area of the district under paragraph (a). As permitted by section
469.176, subdivision 4k, the expenditures, including the permitted expenditures under
paragraph (a), need not be made within the geographic area of the project. Expenditures
that meet the requirements of this paragraph are legally permitted expenditures of the district,
notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase
under this paragraph, the expenditures must:
(1) be used exclusively to assist housing that meets the requirement for a qualified
low-income building, as that term is used in section 42 of the Internal Revenue Code; and
(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the
Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal
Revenue Code; and
(3) be used to:
(i) acquire and prepare the site of the housing;
(ii) acquire, construct, or rehabilitate the housing; or
(iii) make public improvements directly related to the housing; or
(4) be used to develop housing:
(i) if the market value of the housing does not exceed the lesser of:
(A) 150 percent of the average market value of single-family homes in that municipality;
or
(B) $200,000 for municipalities located in the metropolitan area, as defined in section
473.121, or $125,000 for all other municipalities; and
(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition
of existing structures, site preparation, and pollution abatement on one or more parcels, if
the parcel contains a residence containing one to four family dwelling units that has been
vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision
7, but without regard to whether the residence is the owner's principal residence, and only
after the redemption period has expired.
(e) The authority under paragraph (d), clause (4), expires on December 31, 2016.
Increments may continue to be expended under this authority after that date, if they are used
to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if
December 31, 2016, is considered to be the last date of the five-year period after certification
under that provision.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read:
Subd. 3.
Five-year rule.
(a) Revenues derived from tax increments new text begin paid by properties
in the district new text end are considered to have been expended on an activity within the district under
subdivision 2 only if one of the following occurs:
(1) before or within five years after certification of the district, the revenues are actually
paid to a third party with respect to the activity;
(2) bonds, the proceeds of which must be used to finance the activity, are issued and
sold to a third party before or within five years after certification, the revenues are spent to
repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably
expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable
temporary period within the meaning of the use of that term under section 148(c)(1) of the
Internal Revenue Code, or are deposited in a reasonably required reserve or replacement
fund;
(3) binding contracts with a third party are entered into for performance of the activity
before or within five years after certification of the district and the revenues are spent under
the contractual obligation;
(4) costs with respect to the activity are paid before or within five years after certification
of the district and the revenues are spent to reimburse a party for payment of the costs,
including interest on unreimbursed costs; or
(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs
(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision
2, paragraph (e).
(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the
original refunded bonds meet the requirements of paragraph (a), clause (2).
(c) For a redevelopment district or a renewal and renovation district certified after June
30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are
extended to ten years after certification of the district. For a redevelopment district certified
after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph
(a) are extended to eight years after certification of the district. This extension is provided
primarily to accommodate delays in development activities due to unanticipated economic
circumstances.
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 2016, section 469.178, subdivision 7, is amended to read:
Subd. 7.
Interfund loans.
new text begin (a) new text end The authority or municipality may advance or loan money
to finance expenditures under section 469.176, subdivision 4, from its general fund or any
other fund under which it has legal authority to do so.
new text begin (b) Not later than 60 days after money is transferred, advanced, or spent, whichever is
earliest,new text end the loan or advance must be authorizeddeleted text begin ,deleted text end by resolution of the governing body or of
the authority, whichever has jurisdiction over the fund from which the advance or loan is
authorizeddeleted text begin , before money is transferred, advanced, or spent, whichever is earliestdeleted text end .
new text begin (c)new text end The resolution may generally grant to new text begin the municipality or new text end the authority the power to
make interfund loans under one or more tax increment financing plans or for one or more
districts.new text begin The resolution may be adopted before or after the adoption of the tax increment
financing plan or the creation of the tax increment financing district from which the advance
or loan is to be repaid.
new text end
new text begin (d) new text end The terms and conditions for repayment of the loan must be provided in writing
deleted text begin anddeleted text end new text begin . The written terms and conditions may be in any form, but mustnew text end include, at a minimum,
the principal amount, the interest rate, and maximum term.new text begin Written terms may be modified
or amended in writing by the municipality or the authority before the latest decertification
of any tax increment financing district from which the interfund loan is to be repaid.new text end The
maximum rate of interest permitted to be charged is limited to the greater of the rates
specified under section 270C.40 or 549.09 as of the date the loan or advance is authorized,
unless the written agreement states that the maximum interest rate will fluctuate as the
interest rates specified under section 270C.40 or 549.09 are from time to time adjusted.new text begin
Loans or advances may be structured as draw-down or line-of-credit obligations of the
lending fund.
new text end
new text begin
(e) The authority shall report in the annual report submitted pursuant to section 469.175,
subdivision 6:
new text end
new text begin
(1) the amount of any interfund loan or advance made in a calendar year; and
new text end
new text begin
(2) any amendment of an interfund loan or advance made in a calendar year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to all districts, regardless of when the request for certification was made.
new text end
Sec. 5.
Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:
Subd. 2.
Special rules.
(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, new text begin economic development district, new text end soil condition district, or
a soil deficiency district established by the city or a development authority of the city in the
project area.
(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting of at
least 80 percent of the acreage of the project area (excluding street and railroad right of
way) are characterized by one or more of the following conditions:
(1) peat or other soils with geotechnical deficiencies that impair development of
residential or commercial buildings or infrastructure;
(2) soils or terrain that requires substantial filling in order to permit the development of
commercial or residential buildings or infrastructure;
(3) landfills, dumps, or similar deposits of municipal or private waste;
(4) quarries or similar resource extraction sites;
(5) floodway; and
(6) substandard buildings within the meaning of Minnesota Statutes, section 469.174,
subdivision 10.
(c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be
characterized by the relevant condition if at least 70 percent of the area of the parcel contains
the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to
be characterized by substandard buildings if the buildings occupy at least 30 percent of the
area of the parcel.
(d) new text begin The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is
extended to nine years for any district. new text end The five-year rule under Minnesota Statutes, section
469.1763, subdivision 3, is extended to ten years for any district, and section 469.1763,
subdivision 4, does not apply to any district.
(e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph
(a), not more than 80 percent of the total revenue derived from tax increments paid by
properties in any district (measured over the life of the district) may be expended on activities
outside the district but within the project area.
(f) For a soil deficiency district:
(1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district; and
(2) except as otherwise provided in this subdivision, increments may be used only to:
(i) acquire parcels on which the improvements described in item (ii) will occur;
(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
cost of installing public improvements directly caused by the deficiencies; and
(iii) pay for the administrative expenses of the authority allocable to the district.
(g) Increments spent for any infrastructure costs, whether inside a district or outside a
district but within the project area, are deemed to satisfy the requirements of paragraph (f)
and Minnesota Statutes, section 469.176, subdivisions 4bnew text begin , 4c,new text end and 4j.
(h) Increments from any district may not be used to pay the costs of landfill closure or
public infrastructure located on the following parcels within the plat known as Burnsville
Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.
(i) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires on December 31, deleted text begin 2018deleted text end new text begin 2020new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon approval by the governing body
of the city of Burnsville and compliance with the requirements of Minnesota Statutes, section
645.021.
new text end
Sec. 6.
Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter
382, section 84, is amended to read:
Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT
FINANCING DISTRICT; SPECIAL RULES.
(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and
the governing body of the city of Duluth approves the plan for the tax increment financing
district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020;
010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090;
010-2730-00100; new text begin 010-02730-00120; 010-02730-00130; 010-02730-00140; new text end 010-2730-00160;
010-2730-00180; 010-2730-00200; 010-2730-00300; new text begin 010-02730-00320; new text end 010-2746-01250;
010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380;
010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530;
010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580;
010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580;
010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota
Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year
period from the date of certification of the tax increment financing district, must be
considered to be met if the activities are undertaken within five years after the date all
qualifying parcels are delisted from the Federal Superfund list.
(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning
in the sixth year following certification of the district requirement, will begin in the sixth
year following the date all qualifying parcels are delisted from the Federal Superfund list.
(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are
satisfied if the action is commenced within four years after the date all qualifying parcels
are delisted from the Federal Superfund list and evidence of the action required is submitted
to the county auditor by February 1 of the fifth year following the year in which all qualifying
parcels are delisted from the Federal Superfund list.
(d) For purposes of this section, "qualifying parcels" means United States Steel parcels
listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the
USS Site (USEPA OU 02) that are included in the tax increment financing district.
(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175,
subdivision 5, the Seaway Port Authority of Duluth shall report the status of all parcels
listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status report
must show the parcel numbers, the listed or delisted status, and if delisted, the delisting
date.
new text begin
(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other
law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan
program before approval of the tax increment financing plan for or the establishment of the
district authorized by this section. The authority may make loans under this program and
the proceeds of the loans may be used for any permitted use of increments under this law
or Minnesota Statutes, section 469.176, for the district, and may be repaid with increments
from the district established under this section. This subdivision applies to any action
authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivision 3.
new text end
Sec. 7.
Laws 2014, chapter 308, article 6, section 9, is amended to read:
Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
Subdivision 1.
Definitions.
(a) For the purposes of this section, the following terms have
the meanings given them.
(b) "City" means the city of Maple Grove.
(c) "Project area" means new text begin all or a portion of new text end the area in the city commencing at a point
130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section
23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23,
thence south along said west line a distance of 1,200 feet; thence easterly to the east line of
Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance
of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue
North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter
of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west
line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55
degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section
24; thence West along said south line to the east right-of-way line of Zachary Lane; thence
North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said
Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence
South along the east line of said Outlot A and its southerly extension to the south right-of-way
line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of
Section 24; thence South along said east line to the north line of the South Half of the
Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way
line of Jefferson Highway North; thence southerly along the westerly right-of-way line of
Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west
right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot
A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North
Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east
line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south
line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State
Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
westerly right-of-way line of State Highway 169 and the northerly right-of-way line of
Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
and there terminating, provided that the project area includes the rights-of-way for all present
and future highway interchanges abutting the area described in this paragraphnew text begin , and may
include any additional property necessary to cause the property included in the tax increment
financing district to consist of complete parcelsnew text end .
(d) "Soil deficiency district" means a type of tax increment financing district consisting
of a portion of the project area in which the city finds by resolution that the following
conditions exist:
(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
the district require substantial filling, grading, or other physical preparation for use; and
(2) the estimated cost of the physical preparation under clause (1), but excluding costs
directly related to roads as defined in Minnesota Statutes, section 160.01, and local
improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses
(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before
completion of the preparation.
Subd. 2.
Special rules.
(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, soil condition district, or soil deficiency district established
by the city or a development authority of the city in the project area.
(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting of at
least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way,
are characterized by one or more of the following conditions:
(1) peat or other soils with geotechnical deficiencies that impair development of
commercial buildings or infrastructure;
(2) soils or terrain that require substantial filling in order to permit the development of
commercial buildings or infrastructure;
(3) landfills, dumps, or similar deposits of municipal or private waste;
(4) quarries or similar resource extraction sites;
(5) floodway; and
(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
subdivision 10.
(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
relevant condition if at least 70 percent of the area of the parcel contains the relevant
condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
substandard buildings if substandard buildings occupy at least 30 percent of the area of the
parcel.
(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision
4, does not apply to any district.
(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax
increments paid by properties in any district, measured over the life of the district, may be
expended on activities outside the district but within the project area.
(f) For a soil deficiency district:
(1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district;
(2) increments may be used only to:
(i) acquire parcels on which the improvements described in item (ii) will occur;
(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
cost of installing public improvements directly caused by the deficiencies; and
(iii) pay for the administrative expenses of the authority allocable to the district; and
(3) any parcel acquired with increments from the district must be sold at no less than
their fair market value.
(g) Increments spent for any infrastructure costs, whether inside a district or outside a
district but within the project area, are deemed to satisfy the requirements of Minnesota
Statutes, section 469.176, subdivision 4j.
(h) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires June 30, 2020.
new text begin
(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
increments from a soil deficiency district to acquire parcels and for other infrastructure costs
either inside or outside of the district, but within the project area, if the acquisition or
infrastructure is for a qualified development. For purposes of this paragraph, a development
is a qualified development only if all of the following requirements are satisfied:
new text end
new text begin
(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken
primarily to serve the development;
new text end
new text begin
(2) the city has a binding, written commitment and adequate financial assurances from
the developer that the development will be constructed; and
new text end
new text begin
(3) the development does not consist of retail trade or housing improvements.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon approval by the governing body
of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes,
section 645.021.
new text end
Sec. 8. new text begin CITY OF ANOKA; TIF DISTRICT.
new text end
new text begin
For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the
city of Anoka's Greens of Anoka redevelopment tax increment financing district is deemed
to be certified on June 29, 2012, rather than its actual certification date of July 2, 2012, and
the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if
the district were certified on that date.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon approval by the governing body
of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 9. new text begin CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
new text end
new text begin
Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision 3,
the chief clerical officer of the city of Edina may file the city's certificate of its approval of
Laws 2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the certificate is so
filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3, are
otherwise complied with, the special law is deemed approved, and all actions taken by the
city prior to the effective date of this section in reliance on Laws 2014, chapter 308, article
6, section 8, are deemed consistent with Laws 2014, chapter 308, article 6, section 8, and
this act.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from June 30, 2016, without
local approval as an amendment to the provisions of Laws 2014, chapter 308, article 6,
section 8.
new text end
Sec. 10. new text begin CITY OF COON RAPIDS; TAX INCREMENT FINANCING.
new text end
new text begin
Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b,
or any other law to the contrary, the city of Coon Rapids may collect tax increment from
District 6-1 Port Riverwalk through December 31, 2038.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the governing bodies
of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with
the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
subdivision 3.
new text end
Sec. 11. new text begin CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING.
new text end
new text begin
The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
must be undertaken within a five-year period from the date of certification of a tax increment
financing district, is considered to be met for Tax Increment Financing District No. 1-12
(Gateway North), administered by the Cottage Grove Economic Development Authority,
if the activities are undertaken prior to January 1, 2017.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the chief clerical
officer of the governing body of the city of Cottage Grove with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 12. new text begin CITY OF NORTHFIELD; TAX INCREMENT FINANCING.
new text end
new text begin
The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
must be undertaken within a five-year period from the date of certification of a tax increment
financing district, is considered to be met for the Riverfront Tax Increment Financing District
in the city of Northfield, if the activities are undertaken prior to July 12, 2017.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Northfield and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 13. new text begin CITY OF RICHFIELD; EXTENSION OF DISTRICT.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law
to the contrary, the city of Richfield and the Housing and Redevelopment Authority in and
for the city of Richfield may elect to extend the duration limit of the redevelopment tax
increment financing district known as the Cedar Avenue Tax Increment Financing District
established by Laws 2005, chapter 152, article 2, section 25, by ten years.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the city of Richfield,
Hennepin County, and Independent School District No. 280 with the requirements of
Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, subdivisions 2 and 3.
new text end
Sec. 14. new text begin CITY OF ST. PAUL; TIF AUTHORITY.
new text end
new text begin
(a) For purposes of computing the duration limits under Minnesota Statutes, section
469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
District. This authority is limited to the first four years of increment or increments derived
from taxes payable in 2023, whichever occurs first.
new text end
new text begin
(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of
applying any limits based on when the district was certified under Minnesota Statutes,
section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed
to be January 2 of the property tax assessment year for which increment is first received
under the waiver.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from July 1, 2016, without
local approval under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).
new text end
ARTICLE 8
PUBLIC FINANCE
Section 1.
Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read:
Subdivision 1.
Certificates of indebtedness.
The town board may issue certificates of
indebtedness within the debt limits for a town purpose otherwise authorized by law. The
certificates shall be payable in not more than ten years and be issued on the terms and in
the manner as the board may determinenew text begin , provided that notes issued for projects that eliminate
R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be
payable in not more than 20 yearsnew text end . If the amount of the certificates to be issued exceeds
0.25 percent of the estimated market value of the town, they shall not be issued for at least
ten days after publication in a newspaper of general circulation in the town of the board's
resolution determining to issue them. If within that time, a petition asking for an election
on the proposition signed by voters equal to ten percent of the number of voters at the last
regular town election is filed with the clerk, the certificates shall not be issued until their
issuance has been approved by a majority of the votes cast on the question at a regular or
special election. A tax levy shall be made to pay the principal and interest on the certificates
as in the case of bonds.
Sec. 2.
Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read:
Subd. 2.
Equipment acquisition; capital notes.
The board may, by resolution and
without public referendum, issue capital notes within existing debt limits for the purpose
of purchasing ambulance and other medical equipment, road construction or maintenance
equipment, public safety equipment and other capital equipment having an expected useful
life at least equal to the term of the notes issued. The notes shall be payable in not more
than ten years and shall be issued on terms and in a manner as the board determinesnew text begin , provided
that notes issued for projects that eliminate R-22, as such projects are defined in section
240A.09, paragraph (b), clause (2), shall be payable in not more than 20 yearsnew text end . The total
principal amount of the notes issued for any fiscal year shall not exceed one percent of the
total annual budget for that year and shall be issued solely for the purchases authorized in
this subdivision. A tax levy shall be made for the payment of the principal and interest on
such notes as in the case of bonds. For purposes of this subdivision, "equipment" includes
computer hardware and software, whether bundled with machinery or equipment or
unbundled. For purposes of this subdivision, the term "medical equipment" includes computer
hardware and software and other intellectual property for use in medical diagnosis, medical
procedures, research, record keeping, billing, and other hospital applications, together with
application development services and training related to the use of the computer hardware
and software and other intellectual property, all without regard to their useful life. For
purposes of determining the amount of capital notes which the county may issue in any
year, the budget of the county and Hennepin Healthcare System, Inc. shall be combined
and the notes issuable under this subdivision shall be in addition to obligations issuable
under section 373.01, subdivision 3.
Sec. 3.
Minnesota Statutes 2016, section 410.32, is amended to read:
410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
(a) Notwithstanding any contrary provision of other law or charter, a home rule charter
city may, by resolution and without public referendum, issue capital notes subject to the
city debt limit to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction
and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware and software.
(c) The equipment or software must have an expected useful life at least as long as the
term of the notes.
(d) The notes shall be payable in not more than ten years and be issued on terms and in
the manner the city determinesnew text begin , provided that notes issued for projects that eliminate R-22,
as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be payable
in not more than 20 yearsnew text end . The total principal amount of the capital notes issued in a fiscal
year shall not exceed 0.03 percent of the estimated market value of taxable property in the
city for that year.
(e) A tax levy shall be made for the payment of the principal and interest on the notes,
in accordance with section 475.61, as in the case of bonds.
(f) Notes issued under this section shall require an affirmative vote of two-thirds of the
governing body of the city.
(g) Notwithstanding a contrary provision of other law or charter, a home rule charter
city may also issue capital notes subject to its debt limit in the manner and subject to the
limitations applicable to statutory cities pursuant to section 412.301.
Sec. 4.
Minnesota Statutes 2016, section 412.301, is amended to read:
412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
(a) The council may issue certificates of indebtedness or capital notes subject to the city
debt limits to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction
and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware or software.
(c) The equipment or software must have an expected useful life at least as long as the
terms of the certificates or notes.
(d) Such certificates or notes shall be payable in not more than ten years and shall be
issued on such terms and in such manner as the council may determinenew text begin , provided, however,
that notes issued for projects that eliminate R-22, as such projects are defined in section
240A.09, paragraph (b), clause (2), shall be payable in not more than 20 yearsnew text end .
(e) If the amount of the certificates or notes to be issued to finance any such purchase
exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall
not be issued for at least ten days after publication in the official newspaper of a council
resolution determining to issue them; and if before the end of that time, a petition asking
for an election on the proposition signed by voters equal to ten percent of the number of
voters at the last regular municipal election is filed with the clerk, such certificates or notes
shall not be issued until the proposition of their issuance has been approved by a majority
of the votes cast on the question at a regular or special election.
(f) A tax levy shall be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in the case of bonds.
Sec. 5.
Minnesota Statutes 2016, section 469.034, subdivision 2, is amended to read:
Subd. 2.
General obligation revenue bonds.
(a) An authority may pledge the general
obligation of the general jurisdiction governmental unit as additional security for bonds
payable from income or revenues of the project or the authority. The authority must find
that the pledged revenues will equal or exceed 110 percent of the principal and interest due
on the bonds for each year. The proceeds of the bonds must be used for a qualified housing
development project or projects. The obligations must be issued and sold in the manner and
following the procedures provided by chapter 475, except the obligations are not subject to
approval by the electors, and the maturities may extend to not more than 35 years for
obligations sold to finance housing for the elderly and 40 years for other obligations issued
under this subdivision. The authority is the municipality for purposes of chapter 475.
(b) The principal amount of the issue must be approved by the governing body of the
general jurisdiction governmental unit whose general obligation is pledged. Public hearings
must be held on issuance of the obligations by both the authority and the general jurisdiction
governmental unit. The hearings must be held at least 15 days, but not more than 120 days,
before the sale of the obligations.
(c) The maximum amount of general obligation bonds that may be issued and outstanding
under this section equals the greater of (1) one-half of one percent of the estimated market
value of the general jurisdiction governmental unit whose general obligation is pledged, or
(2) deleted text begin $3,000,000deleted text end new text begin $5,000,000new text end . In the case of county or multicounty general obligation bonds,
the outstanding general obligation bonds of all cities in the county or counties issued under
this subdivision must be added in calculating the limit under clause (1).
(d) "General jurisdiction governmental unit" means the city in which the housing
development project is located. In the case of a county or multicounty authority, the county
or counties may act as the general jurisdiction governmental unit. In the case of a multicounty
authority, the pledge of the general obligation is a pledge of a tax on the taxable property
in each of the counties.
(e) "Qualified housing development project" means a housing development project
providing housing either for the elderly or for individuals and families with incomes not
greater than 80 percent of the median family income as estimated by the United States
Department of Housing and Urban Development for the standard metropolitan statistical
area or the nonmetropolitan county in which the project is located. The project must be
owned for the term of the bonds either by the authority or by a limited partnership or other
entity in which the authority or another entity under the sole control of the authority is the
sole general partner and the partnership or other entity must receive (1) an allocation from
the Department of Management and Budget or an entitlement issuer of tax-exempt bonding
authority for the project and a preliminary determination by the Minnesota Housing Finance
Agency or the applicable suballocator of tax credits that the project will qualify for four
percent low-income housing tax credits or (2) a reservation of nine percent low-income
housing tax credits from the Minnesota Housing Finance Agency or a suballocator of tax
credits for the project. A qualified housing development project may admit nonelderly
individuals and families with higher incomes if:
(1) three years have passed since initial occupancy;
(2) the authority finds the project is experiencing unanticipated vacancies resulting in
insufficient revenues, because of changes in population or other unforeseen circumstances
that occurred after the initial finding of adequate revenues; and
(3) the authority finds a tax levy or payment from general assets of the general jurisdiction
governmental unit will be necessary to pay debt service on the bonds if higher income
individuals or families are not admitted.
(f) The authority may issue bonds to refund bonds issued under this subdivision in
accordance with section 475.67. The finding of the adequacy of pledged revenues required
by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
issuance of refunding bonds. This paragraph applies to refunding bonds issued on and after
July 1, 1992.
Sec. 6.
Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read:
Subdivision 1.
Establishment.
An economic development authority may create and
define the boundaries of economic development districts at any place or places within the
city, except that the district boundaries must be contiguous, and may use the powers granted
in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a
public hearing on the matter. At least ten days before the hearing, the authority shall publish
notice of the hearing in a deleted text begin dailydeleted text end newspaper of general circulation in the city. Also, the authority
shall find that an economic development district is proper and desirable to establish and
develop within the city.
Sec. 7.
Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to
read:
new text begin Subd. 1u. new text end
new text begin Obligations. new text end
new text begin
(a) In addition to other authority in this section, the council may
issue certificates of indebtedness, bonds, or other obligations under this section in an amount
not exceeding $82,100,000 for capital expenditures as prescribed in the council's transit
capital improvement program and for related costs, including the costs of issuance and sale
of the obligations. Of this authorization, after July 1, 2016, the council may issue certificates
of indebtedness, bonds, or other obligations in an amount not exceeding $40,100,000, and
after July 1, 2017, the council may issue certificates of indebtedness, bonds, or other
obligations in an additional amount not exceeding $42,000,000.
new text end
new text begin
(b) This section applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
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. 8.
Minnesota Statutes 2016, section 475.58, subdivision 3b, is amended to read:
Subd. 3b.
Street reconstruction and bituminous overlays.
(a) A municipality may,
without regard to the election requirement under subdivision 1, issue and sell obligations
for street reconstruction or bituminous overlays, if the following conditions are met:
(1) the streets are reconstructed or overlaid under a street reconstruction or overlay plan
that describes the street reconstruction or overlay to be financed, the estimated costs, and
any planned reconstruction or overlay of other streets in the municipality over the next five
years, and the plan and issuance of the obligations has been approved by a vote of deleted text begin alldeleted text end new text begin a
majoritynew text end of the members of the governing body present at the meeting following a public
hearing for which notice has been published in the official newspaper at least ten days but
not more than 28 days prior to the hearing; and
(2) if a petition requesting a vote on the issuance is signed by voters equal to five percent
of the votes cast in the last municipal general election and is filed with the municipal clerk
within 30 days of the public hearing, the municipality may issue the bonds only after
obtaining the approval of a majority of the voters voting on the question of the issuance of
the obligations. If the municipality elects not to submit the question to the voters, the
municipality shall not propose the issuance of bonds under this section for the same purpose
and in the same amount for a period of 365 days from the date of receipt of the petition. If
the question of issuing the bonds is submitted and not approved by the voters, the provisions
of section 475.58, subdivision 1a, shall apply.
(b) Obligations issued under this subdivision are subject to the debt limit of the
municipality and are not excluded from net debt under section 475.51, subdivision 4.
(c) For purposes of this subdivision, street reconstruction and bituminous overlays
includes utility replacement and relocation and other activities incidental to the street
reconstruction, turn lanes and other improvements having a substantial public safety function,
realignments, other modifications to intersect with state and county roads, and the local
share of state and county road projects. For purposes of this subdivision, "street
reconstruction" includes expenditures for street reconstruction that have been incurred by
a municipality before approval of a street reconstruction plan, if such expenditures are
included in a street reconstruction plan approved on or before the date of the public hearing
under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
(d) Except in the case of turn lanes, safety improvements, realignments, intersection
modifications, and the local share of state and county road projects, street reconstruction
and bituminous overlays does not include the portion of project cost allocable to widening
a street or adding curbs and gutters where none previously existed.
Sec. 9.
Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read:
Subd. 2.
Requirements waived.
The requirements as to public sale shall not apply:
(1) to obligations issued under the provisions of a home rule charter or of a law
specifically authorizing a different method of sale, or authorizing them to be issued in such
manner or on such terms and conditions as the governing body may determine;
(2) to obligations sold by an issuer in an amount not exceeding the total sum of
$1,200,000 in any 12-month period;
(3) to obligations issued by a governing body other than a school board in anticipation
of the collection of taxes or other revenues appropriated for expenditure in a single year, if
sold in accordance with the most favorable of two or more proposals solicited privately;
(4) to obligations sold to any board, department, or agency of the United States of
America or of the state of Minnesota, in accordance with rules or regulations promulgated
by such board, department, or agency;
(5) to obligations issued to fund pension and retirement fund liabilities under section
475.52, subdivision 6, obligations issued with tender options under section 475.54,
subdivision 5a, crossover refunding obligations referred to in section 475.67, subdivision
13, and any issue of obligations comprised in whole or in part of obligations bearing interest
at a rate or rates which vary periodically referred to in section 475.56;
(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions
authorized by law, if the governing body of the municipality, on the advice of bond counsel
or special tax counsel, determines that interest on the obligations cannot be represented to
be excluded from gross income for purposes of federal income taxation;
(7) to obligations issued in the form of an installment purchase contract, lease purchase
agreement, or other similar agreement;
(8) to obligations sold under a bond reinvestment program; and
(9) if the municipality has retained an independent deleted text begin financialdeleted text end new text begin municipalnew text end advisor, obligations
which the governing body determines shall be sold by private negotiation.
ARTICLE 9
IRON RANGE RESOURCES AND REHABILITATION
Section 1.
Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:
Subd. 7.
Iron Range resources and rehabilitation deleted text begin Boarddeleted text end .
new text begin After seeking a
recommendation from the Iron Range Resources and Rehabilitation Board, new text end the new text begin commissioner
of new text end Iron Range resources and rehabilitation deleted text begin Boarddeleted text end may purchase insurance deleted text begin it considersdeleted text end new text begin the
commissioner deemsnew text end necessary and appropriate to insure facilities operated by the board.
Sec. 2.
Minnesota Statutes 2016, section 116J.424, is amended to read:
116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
CONTRIBUTION.
The commissioner of deleted text begin thedeleted text end Iron Range resources and rehabilitation deleted text begin Board with approval
by the board,deleted text end may provide an equal match for any loan or equity investment made for a
project located in the tax relief area defined in section 273.134, paragraph (b), by the
Minnesota 21st century fund created by section 116J.423. The match may be in the form
of a loan or equity investment, notwithstanding whether the fund makes a loan or equity
investment. The state shall not acquire an equity interest because of an equity investment
or loan deleted text begin by the boarddeleted text end new text begin under this sectionnew text end and the deleted text begin board at its sole discretiondeleted text end new text begin commissioner,
after consultation with the Iron Range Resources and Rehabilitation Board,new text end shall new text begin have the
sole discretion to new text end decide what interest deleted text begin itdeleted text end new text begin the boardnew text end acquires in a project. The commissioner
of employment and economic development may require a commitment from the deleted text begin boarddeleted text end new text begin
commissionernew text end to make the match prior to disbursing money from the fund.
Sec. 3.
Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given them in this subdivision.
(b) "Area development rate" means a rate schedule established by a utility that provides
customers within an area development zone service under a base utility rate schedule, except
that charges may be reduced from the base rate as agreed upon by the utility and the customer
consistent with this section.
(c) "Area development zone" means a contiguous or noncontiguous area designated by
an authority or municipality for development or redevelopment and within which one of
the following conditions exists:
(1) obsolete buildings not suitable for improvement or conversion or other identified
hazards to the health, safety, and general well-being of the community;
(2) buildings in need of substantial rehabilitation or in substandard condition; or
(3) low values and damaged investments.
(d) "Authority" means a rural development financing authority established under sections
469.142 to 469.151; a housing and redevelopment authority established under sections
469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an
economic development authority established under sections 469.090 to 469.108; a
redevelopment agency as defined in sections 469.152 to 469.165; the new text begin commissioner of new text end Iron
Range resources and rehabilitationnew text begin , acting after consultation with thenew text end board established
under section 298.22; a municipality that is administering a development district created
under sections 469.124 to 469.133 or any special law; a municipality that undertakes a
project under sections 469.152 to 469.165, except a town located outside the metropolitan
area as defined in section 473.121, subdivision 2, or with a population of 5,000 persons or
less; or a municipality that exercises the powers of a port authority under any general or
special law.
(e) "Municipality" means a city, however organized, and, with respect to a project
undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008,
also includes any county.
Sec. 4.
Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:
Subd. 8.
Municipality.
"Municipality" means a city, town, or township located in whole
or part within the area. If a municipality is located partly within and partly without the area,
the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to
taxation or taxing jurisdiction within the municipality are to the property or portion thereof
that is located in that portion of the municipality within the area, except that the fiscal
capacity of the municipality must be computed upon the basis of the valuation and population
of the entire municipality. A municipality shall be excluded from the area if its municipal
comprehensive zoning and planning policies conscientiously exclude most
commercial-industrial development, for reasons other than preserving an agricultural use.
The new text begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Boarddeleted text end and the commissioner
of revenue shall jointly make this determination annually and shall notify those municipalities
that are ineligible to participate in the tax base sharing program provided in this chapter for
the following year.new text begin Before making the joint determination, the commissioner of Iron Range
resources and rehabilitation shall seek a recommendation from the Iron Range Resources
and Rehabilitation Board.
new text end
Sec. 5.
Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:
Subd. 17.
School fund allocation.
(a) "School fund allocation" means an amount up to
25 percent of the areawide levy certified by the new text begin commissioner of Iron Range resources and
rehabilitation, after seeking a recommendation from the new text end Iron Range Resources and
Rehabilitation Boardnew text begin ,new text end to be used for the purposes of the Iron Range school consolidation
and cooperatively operated school account under section 298.28, subdivision 7a.
(b) The allocation under paragraph (a) shall only be made after the new text begin commissioner of
Iron Range resources and rehabilitation, after seeking a recommendation from the new text end Iron
Range Resources and Rehabilitation Boardnew text begin ,new text end has certified by June 30 that the Iron Range
school consolidation and cooperatively operated account has insufficient funds to make
payments as authorized under section 298.28, subdivision 7a.
Sec. 6.
Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:
Subdivision 1.
Development.
In any county where the county board by proper resolution
sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or
section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation
deleted text begin with the approval of thedeleted text end new text begin , after seeking a recommendation from the Iron Range Resources
and Rehabilitation new text end Boardnew text begin ,new text end may upon request of the county board assist said county in carrying
out any project for the long range development of its forest resources through matching of
funds or otherwise.
Sec. 7.
Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:
Subd. 8.
Commissioner.
"Commissioner" means the commissioner of revenue of the
state of Minnesotanew text begin , except that when used in sections 298.22 to 298.227, and 298.291 to
298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitationnew text end .
Sec. 8.
Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:
Subdivision 1.
The Office of the Commissioner of Iron Range Resources and
Rehabilitation.
(a) The Office of the Commissioner of Iron Range Resources and
Rehabilitation is created as an agency in the executive branch of state government. The
governor shall appoint the commissioner of Iron Range resources and rehabilitation under
section 15.06.new text begin The commissioner may expend amounts appropriated to the commissioner
or the board for projects after submitting the expenditure to the board for a recommendation
under subdivision 1a.
new text end
(b) The commissioner may hold other positions or appointments that are not incompatible
with duties as commissioner of Iron Range resources and rehabilitation. The commissioner
may appoint a deputy commissioner. All expenses of the commissioner, including the
payment of staff and other assistance as may be necessary, must be paid out of the amounts
appropriated by section 298.28 or otherwise made available by law to the commissioner.
Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting
options available under section 471.345 when the commissioner determines it is in the best
interest of the agency. The agency is not subject to sections 16E.016 and 16C.05.
(c) When the commissioner determines that distress and unemployment exists or may
exist in the future in any county by reason of the removal of natural resources or a possibly
limited use of natural resources in the future and any resulting decrease in employment, the
commissioner may use whatever amounts of the appropriation made to the commissioner
of revenue in section 298.28 that are determined to be necessary and proper in the
development of the remaining resources of the county and in the vocational training and
rehabilitation of its residents, except that the amount needed to cover cost overruns awarded
to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in
effect after July 1, 1985, is appropriated from the general fund. For the purposes of this
section, "development of remaining resources" includes, but is not limited to, the promotion
of tourism.
Sec. 9.
Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:
Subd. 1a.
Iron Range Resources and Rehabilitation Board.
The Iron Range Resources
and Rehabilitation Board consists of the state senators and representatives elected from state
senatorial or legislative districts in which one-third or more of the residents reside in a
taconite assistance area as defined in section 273.1341. One additional state senator shall
also be appointed by the senate Subcommittee on Committees of the Committee on Rules
and Administration. All expenditures and projects made by the commissioner shall first be
submitted to the board deleted text begin for approvaldeleted text end . new text begin The board shall recommend approval or disapproval
or modification of the expenditures and projects. new text end The expenses of the board shall be paid
by the state from the funds raised pursuant to this section. Members of the board may be
reimbursed for expenses in the manner provided in sections 3.099, subdivision 1, and 3.101,
and may receive per diem payments during the interims between legislative sessions in the
manner provided in section 3.099, subdivision 1.
The members shall be appointed in January of every odd-numbered year, and shall serve
until January of the next odd-numbered year. Vacancies on the board shall be filled in the
same manner as original members were chosen.
Sec. 10.
Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:
Subd. 5a.
Forest trust.
The commissioner, deleted text begin upon approval bydeleted text end new text begin after requesting a
recommendation fromnew text end the board, may purchase forest lands in the taconite assistance area
defined in under section 273.1341 with funds specifically authorized for the purchase. The
acquired forest lands must be held in trust for the benefit of the citizens of the taconite
assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be
managed and developed for recreation and economic development purposes. The
commissioner, deleted text begin upon approval bydeleted text end new text begin after requesting a recommendation fromnew text end the board, may
sell forest lands purchased under this subdivision if the deleted text begin board findsdeleted text end new text begin commissioner determinesnew text end
that the sale advances the purposes of the trust. Proceeds derived from the management or
sale of the lands and from the sale of timber or removal of gravel or other minerals from
these forest lands shall be deposited into an Iron Range Miners' Memorial Forest account
that is established within the state financial accounts. Funds may be expended from the
account deleted text begin upon approval bydeleted text end new text begin after the commissioner has sought a recommendation fromnew text end the
board, to purchase, manage, administer, convey interests in, and improve the forest lands.
deleted text begin With approval bydeleted text end new text begin After the commissioner has sought a recommendation fromnew text end the board,
money in the Iron Range Miners' Memorial Forest account may be transferred into the
corpus of the Douglas J. Johnson economic protection trust fund established under sections
298.291 to 298.294. The property acquired under the authority granted by this subdivision
and income derived from the property or the operation or management of the property are
exempt from taxation by the state or its political subdivisions while held by the forest trust.
Sec. 11.
Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:
Subd. 6.
Private entity participation.
new text begin After seeking a recommendation from new text end the boardnew text begin ,
the commissionernew text end may acquire an equity interest in any project for which deleted text begin itdeleted text end new text begin the commissionernew text end
provides funding. The commissioner may establish, participate in the management of, and
dispose of the assets of charitable foundations, nonprofit limited liability companies, and
nonprofit corporations associated with any project for which it provides funding, including
specifically, but without limitation, a corporation within the meaning of section 317A.011,
subdivision 6.
Sec. 12.
Minnesota Statutes 2016, section 298.22, subdivision 8, is amended to read:
Subd. 8.
Spending priority.
In making or deleted text begin approvingdeleted text end new text begin recommendingnew text end any expenditures
on programs or projects, the commissioner and the board shall give the highest priority to
programs and projects that target relief to those areas of the taconite assistance area as
defined in section 273.1341, that have the largest percentages of job losses and population
losses directly attributable to the economic downturn in the taconite industry since the 1980s.
The commissioner and the board shall compare the 1980 population and employment figures
with the 2000 population and employment figures, and shall specifically consider the job
losses in 2000 and 2001 resulting from the closure of LTV Steel Mining Company, in
making or deleted text begin approvingdeleted text end new text begin recommendingnew text end expenditures consistent with this subdivision, as well
as the areas of residence of persons who suffered job loss for which relief is to be targeted
under this subdivision. The commissioner may lease, for a term not exceeding 50 years and
upon the terms determined by the commissioner deleted text begin and approveddeleted text end new text begin after seeking reviewnew text end by the
board, surface and mineral interests owned or acquired by the state of Minnesota acting by
and through the office of the commissioner of Iron Range resources and rehabilitation within
those portions of the taconite assistance area affected by the closure of the LTV Steel Mining
Company facility near Hoyt Lakes. The payments and royalties from these leases must be
deposited into the fund established in section 298.292. This subdivision supersedes any
other conflicting provisions of law and does not preclude the commissioner deleted text begin and the boarddeleted text end
from making expenditures for programs and projects in other areasnew text begin after seeking review by
the boardnew text end .
Sec. 13.
Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:
Subd. 10.
Sale or privatization of functions.
The commissioner of Iron Range resources
and rehabilitation may not sell or privatize the Ironworld Discovery Center or Giants Ridge
Golf and Ski Resort without deleted text begin prior approval bydeleted text end new text begin first seeking a recommendation from new text end the
board.
Sec. 14.
Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:
Subd. 11.
Budgeting.
The commissioner of Iron Range resources and rehabilitation
shall annually prepare a budget for operational expenditures, programs, and projects, and
submit it to the Iron Range Resources and Rehabilitation Boardnew text begin for a recommendationnew text end .
After the budget is approved by deleted text begin the board anddeleted text end the governor, the commissioner may spend
money in accordance with the approved budget.
Sec. 15.
Minnesota Statutes 2016, section 298.221, is amended to read:
298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant
to the terms of any contract entered into by the state under authority of section 298.22 and
any fees which may, in the discretion of the commissioner of Iron Range resources and
rehabilitation, be charged in connection with any project pursuant to that section as amended,
shall be deposited in the state treasury to the credit of the Iron Range Resources and
Rehabilitation Board account in the special revenue fund and are hereby appropriated for
the purposes of section 298.22.
(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner
of the Iron Range Resources and Rehabilitation Board for payment of advertising contracts
if the commissioner determines that the merchandise can be used for special event prizes
or mementos at facilities operated by the board. Nothing in this paragraph authorizes the
commissioner or a member of the board to receive merchandise for personal use.
(c) All fees charged by the commissioner in connection with public use of the state-owned
ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived
by the commissioner from the operation or lease of those facilities and from the lease, sale,
or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be
deposited into an Iron Range Resources and Rehabilitation Board account that is created
within the state enterprise fund. All funds deposited in the enterprise fund account are
appropriated to the commissioner to be expended, deleted text begin subject to approval bydeleted text end new text begin after seeking a
recommendation fromnew text end the board, as follows:
(1) to pay costs associated with the construction, equipping, operation, repair, or
improvement of the Giants Ridge Recreation Area facilities or lands;
(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs
associated with the financing of the facilities; and
(3) to pay the costs of any other project authorized under section 298.22.
Sec. 16.
Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:
Subd. 3.
Project approval.
All projects authorized by this section shall be submitted
by the commissioner to the Iron Range Resources and Rehabilitation Board for deleted text begin approval
bydeleted text end new text begin a recommendation fromnew text end the board. Prior to the commencement of a project involving
the exercise by the commissioner of any authority of sections 469.174 to 469.179, the
governing body of each municipality in which any part of the project is located and the
county board of any county containing portions of the project not located in an incorporated
area shall by majority vote approve or disapprove the project. Any project approved by the
deleted text begin boarddeleted text end new text begin commissionernew text end and the applicable governing bodies, if any, together with detailed
information concerning the project, its costs, the sources of its funding, and the amount of
any bonded indebtedness to be incurred in connection with the project, shall be transmitted
to the governor, who shall approve, disapprove, or return the proposal for additional
consideration within 30 days of receipt. No project authorized under this section shall be
undertaken, and no obligations shall be issued and no tax increments shall be expended for
a project authorized under this section until the project has been approved by the governor.
Sec. 17.
Minnesota Statutes 2016, section 298.2213, subdivision 4, is amended to read:
Subd. 4.
Project approval.
new text begin After seeking a recommendation from new text end the board deleted text begin anddeleted text end new text begin , thenew text end
commissioner shall by August 1 each year prepare a list of projects to be funded from the
money appropriated in this section with necessary supporting information including
descriptions of the projects, plans, and cost estimates. A project must not be approved by
the deleted text begin boarddeleted text end new text begin commissionernew text end unless deleted text begin itdeleted text end new text begin the commissioner new text end finds that:
(1) the project will materially assist, directly or indirectly, the creation of additional
long-term employment opportunities;
(2) the prospective benefits of the expenditure exceed the anticipated costs; and
(3) in the case of assistance to private enterprise, the project will serve a sound business
purpose.
Each project must be approved by the deleted text begin board and thedeleted text end commissioner of Iron Range
resources and rehabilitation. The list of projects must be submitted to the governor, who
shall, by November 15 of each year, approve, disapprove, or return for further consideration,
each project. The money for a project may be spent only upon approval of the project by
the governor. The deleted text begin boarddeleted text end new text begin commissionernew text end may submit supplemental projects for approval at
any timenew text begin , after seeking a recommendation from the boardnew text end .
Sec. 18.
Minnesota Statutes 2016, section 298.2213, subdivision 5, is amended to read:
Subd. 5.
Advisory committees.
deleted text begin Before submission to the board of a proposal for a
project for expenditure of money appropriated under this section,deleted text end The commissioner of Iron
Range resources and rehabilitation shall appoint a technical advisory committee consisting
of at least seven persons who are knowledgeable in areas related to the objectives of the
proposal. If the project involves investment in a scientific research proposal, at least four
of the committee members must be knowledgeable in the specific scientific research area
relating to the project. Members of the committees must be compensated as provided in
section 15.059, subdivision 3. The deleted text begin boarddeleted text end new text begin commissionernew text end shall not act on a proposal new text begin for a
request for expenditure of money appropriated under this section new text end until deleted text begin it has receiveddeleted text end new text begin the
commissioner has sought review from the board of new text end the evaluation and recommendations of
the technical advisory committee.
Sec. 19.
Minnesota Statutes 2016, section 298.2213, subdivision 6, is amended to read:
Subd. 6.
Use of repayments and earnings.
Principal and interest received in repayment
of loans made under this section must be deposited in the deleted text begin state treasury and are appropriated
to the board for the purposes of this sectiondeleted text end new text begin northeast Minnesota economic development
fund account in the special revenue fund in the state treasury. The commissioner of Iron
Range resources and rehabilitation must seek a recommendation from the Iron Range
Resources and Rehabilitation Board for any use of funds appropriated under this sectionnew text end .
Sec. 20.
Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read:
Subdivision 1.
Creation; purposes.
A fund called the taconite environmental protection
fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast
Minnesota located within the taconite assistance area defined in section 273.1341, that are
adversely affected by the environmentally damaging operations involved in mining taconite
and iron ore and producing iron ore concentrate and for the purpose of promoting the
economic development of northeast Minnesota. The taconite environmental protection fund
shall be used for the following purposes:
(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
Board determines are in need of study and which will determine the environmental problems
requiring remedial action;
(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for
by state law;
(3) local economic development projects but only if those projects are approved by the
new text begin commissioner after seeking a recommendation of the projects from the new text end board, and public
works, including construction of sewer and water systems located within the taconite
assistance area defined in section 273.1341;
(4) monitoring of mineral industry related health problems among mining employees;
and
(5) local public works projects under section 298.227, paragraph (c).
Sec. 21.
Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read:
Subd. 2.
Administration.
(a) The taconite area environmental protection fund shall be
administered by the commissioner of the Iron Range Resources and Rehabilitation Board.
The commissioner shall by September 1 of each year submit to the board a list of projects
to be funded from the taconite area environmental protection fund, with such supporting
information including description of the projects, plans, and cost estimates as may be
necessary.
(b) Each year no less than one-half of the amounts deposited into the taconite
environmental protection fund must be used for public works projects, including construction
of sewer and water systems, as specified under subdivision 1, clause (3). new text begin After seeking a
recommendation from new text end the Iron Range Resources and Rehabilitation Boardnew text begin , the commissionernew text end
may waive the requirements of this paragraph.
(c) deleted text begin Upon approval by the board,deleted text end The list of projects approvednew text begin by the commissionernew text end under
this subdivisionnew text begin , after the commissioner has sought review of the projects by the board,new text end
shall be submitted to the governor by November 1 of each year. By December 1 of each
year, the governor shall approve or disapprove, or return for further consideration, each
project. Funds for a project may be expended only upon approval of the project by the deleted text begin boarddeleted text end new text begin
commissionernew text end and the governor. The commissioner may submit supplemental projects deleted text begin to
the board anddeleted text end new text begin for approval from the new text end governor deleted text begin for approvaldeleted text end new text begin after seeking review of the
supplemental projects from the board new text end at any time.
Sec. 22.
Minnesota Statutes 2016, section 298.227, is amended to read:
298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
(a) An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
Iron Range Resources and Rehabilitation Board in a separate taconite economic development
fund for each taconite and direct reduced ore producer. Money from the fund for each
producer shall be released by the commissioner after review by a joint committee consisting
of an equal number of representatives of the salaried employees and the nonsalaried
production and maintenance employees of that producer. The District 11 director of the
United States Steelworkers of America, on advice of each local employee president, shall
select the employee members. In nonorganized operations, the employee committee shall
be elected by the nonsalaried production and maintenance employees. The review must be
completed no later than six months after the producer presents a proposal for expenditure
of the funds to the committee. The funds held pursuant to this section may be released only
for workforce development and associated public facility improvement, or for acquisition
of plant and stationary mining equipment and facilities for the producer or for research and
development in Minnesota on new mining, or taconite, iron, or steel production technology,
but only if the producer provides a matching expenditure equal to the amount of the
distribution to be used for the same purpose beginning with distributions in 2014. Effective
for proposals for expenditures of money from the fund beginning May 26, 2007, the
commissioner may not release the funds before the next scheduled meeting of the board. If
a proposed expenditure is not approved by thenew text begin commissioner, after seeking a recommendation
from thenew text end board, the funds must be deposited in the Taconite Environmental Protection Fund
under sections 298.222 to 298.225. If a producer uses money which has been released from
the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining
shovels, and the producer removes the piece of equipment from the taconite tax relief area
defined in section 273.134 within ten years from the date of receipt of the money from the
fund, a portion of the money granted from the fund must be repaid to the taconite economic
development fund. The portion of the money to be repaid is 100 percent of the grant if the
equipment is removed from the taconite tax relief area within 12 months after receipt of the
money from the fund, declining by ten percent for each of the subsequent nine years during
which the equipment remains within the taconite tax relief area. If a taconite production
facility is sold after operations at the facility had ceased, any money remaining in the fund
for the former producer may be released to the purchaser of the facility on the terms otherwise
applicable to the former producer under this section. If a producer fails to provide matching
funds for a proposed expenditure within six months after the commissioner approves release
of the funds, the funds are available for release to another producer in proportion to the
distribution provided and under the conditions of this section. Any portion of the fund which
is not released by the commissioner within one year of its deposit in the fund shall be divided
between the taconite environmental protection fund created in section 298.223 and the
Douglas J. Johnson economic protection trust fund created in section 298.292 for placement
in their respective special accounts. Two-thirds of the unreleased funds shall be distributed
to the taconite environmental protection fund and one-third to the Douglas J. Johnson
economic protection trust fund.
(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
distributions and the review process, an amount equal to ten cents per taxable ton of
production in 2007, for distribution in 2008 only, that would otherwise be distributed under
paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
wood product facility located in the taconite tax relief area and in a county that contains a
city of the first class. This amount must be deducted from the distribution under paragraph
(a) for which a matching expenditure by the producer is not required. The granting of the
loan or grant is subject to approval by new text begin the commissioner, after seeking a recommendation
from new text end the board. If the money is provided as a loan, interest must be payable on the loan at
the rate prescribed in section 298.2213, subdivision 3. (ii) Repayments of the loan and
interest, if any, must be deposited in the taconite environment protection fund under sections
298.222 to 298.225. If a loan or grant is not made under this paragraph by July 1, 2012, the
amount that had been made available for the loan under this paragraph must be transferred
to the taconite environment protection fund under sections 298.222 to 298.225. (iii) Money
distributed in 2008 to the fund established under this section that exceeds ten cents per ton
is available to qualifying producers under paragraph (a) on a pro rata basis.
(c) Repayment or transfer of money to the taconite environmental protection fund under
paragraph (b), item (ii), must be allocated by the new text begin commissioner of new text end Iron Range resources
and rehabilitationnew text begin , after seeking a recommendation from the Iron Range Resources and
Rehabilitationnew text end Board for public works projects in house legislative districts in the same
proportion as taxable tonnage of production in 2007 in each house legislative district, for
distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph
do not require approval by the governor. For purposes of this paragraph, "house legislative
districts" means the legislative districts in existence on May 15, 2009.
Sec. 23.
Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:
Subd. 7a.
Iron Range school consolidation and cooperatively operated school account.
(a) The following amounts must be allocated to the Iron Range Resources and Rehabilitation
Board to be deposited in the Iron Range school consolidation and cooperatively operated
school account that is hereby created:
(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed
under section 298.24; and
(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
under section 298.24;
(2) the amount as determined under section 298.17, paragraph (b), clause (3);
(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J.
Johnson economic protection trust fund;
(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased
tax proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third
to be distributed to the Douglas J. Johnson economic protection trust fund; and
(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased
tax proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the remaining
one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
(4) any other amount as provided by law.
(b) Expenditures from this account new text begin may be approved as ongoing annual expenditures
and new text end shall be made only to provide disbursements to assist school districts with the payment
of bonds that were issued for qualified school projects, or for any other school disbursement
as approved by the new text begin commissioner of Iron Range resources and rehabilitation after the
commissioner of Iron Range resources and rehabilitation has sought review of the
expenditures by the new text end Iron Range Resources and Rehabilitation Board. For purposes of this
section, "qualified school projects" means school projects within the taconite assistance
area as defined in section 273.1341, that were (1) approved, by referendum, after April 3,
2006; and (2) approved by the commissioner of education pursuant to section 123B.71.
(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
any reduction in debt service equalization aid that the school district qualifies for in that
year, under section 123B.53, subdivision 6, compared with the amount the school district
qualified for in fiscal year 2018.
(d) No expenditure under this section shall be made unless approved by deleted text begin seven members
ofdeleted text end new text begin the commissioner of Iron Range resources and rehabilitation after seeking review of the
expenditure fromnew text end the Iron Range Resources and Rehabilitation Board.
Sec. 24.
Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:
Subd. 9d.
Iron Range higher education account.
Five cents per taxable ton must be
allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron
Range higher education account that is hereby created, to be used for higher education
programs conducted at educational institutions in the taconite assistance area defined in
section 273.1341. The Iron Range Higher Education committee under section 298.2214,
and the deleted text begin Iron Range Resources and Rehabilitation Boarddeleted text end new text begin commissioner of Iron Range
resources and rehabilitationnew text end must approve all expenditures from the accountnew text begin , after seeking
review and recommendation of the expenditures from the Iron Range Resources and
Rehabilitation Boardnew text end .
Sec. 25.
Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:
Subd. 2.
Use of money.
Money in the Douglas J. Johnson economic protection trust
fund may be used for the following purposes:
(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
with private sources of financing, but a loan to a private enterprise shall be for a principal
amount not to exceed one-half of the cost of the project for which financing is sought, and
the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight
percent or an interest rate three percentage points less than a full faith and credit obligation
of the United States government of comparable maturity, at the time that the loan is approved;
(2) to fund reserve accounts established to secure the payment when due of the principal
of and interest on bonds issued pursuant to section 298.2211;
(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on
bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or
retrofitting heating facilities in connection with district heating systems or systems utilizing
alternative energy sources;
(4) to invest in a venture capital fund or enterprise that will provide capital to other
entities that are engaging in, or that will engage in, projects or programs that have the
purposes set forth in subdivision 1. No investments may be made in a venture capital fund
or enterprise unless at least two other unrelated investors make investments of at least
$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J.
Johnson economic protection trust fund may not exceed the amount of the largest investment
by an unrelated investor in the venture capital fund or enterprise. For purposes of this
subdivision, an "unrelated investor" is a person or entity that is not related to the entity in
which the investment is made or to any individual who owns more than 40 percent of the
value of the entity, in any of the following relationships: spouse, parent, child, sibling,
employee, or owner of an interest in the entity that exceeds ten percent of the value of all
interests in it. For purposes of determining the limitations under this clause, the amount of
investments made by an investor other than the Douglas J. Johnson economic protection
trust fund is the sum of all investments made in the venture capital fund or enterprise during
the period beginning one year before the date of the investment by the Douglas J. Johnson
economic protection trust fund; and
(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to
be held and managed as a public trust for the benefit of the area for the purposes authorized
in section 298.22, subdivision 5a. Property purchased under this section may be sold by the
commissioner deleted text begin upon approval bydeleted text end new text begin after seeking a recommendation fromnew text end the board. The net
proceeds must be deposited in the trust fund for the purposes and uses of this section.
Money from the trust fund shall be expended only in or for the benefit of the taconite
assistance area defined in section 273.1341.
Sec. 26.
Minnesota Statutes 2016, section 298.296, subdivision 1, is amended to read:
Subdivision 1.
Project approval.
new text begin (a) new text end The new text begin commissioner of Iron Range resources and
rehabilitation, after seeking a recommendation from the new text end board deleted text begin and commissionerdeleted text end new text begin ,new text end shall by
August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson
economic protection trust with necessary supporting information including description of
the projects, plans, and cost estimates. These projects shall be consistent with the priorities
established in section 298.292 and shall not be approved by the deleted text begin boarddeleted text end new text begin commissionernew text end unless
deleted text begin itdeleted text end new text begin the commissioner, after seeking a recommendation from the board,new text end finds that:
deleted text begin (a)deleted text end new text begin (1)new text end the project will materially assist, directly or indirectly, the creation of additional
long-term employment opportunities;
deleted text begin (b)deleted text end new text begin (2)new text end the prospective benefits of the expenditure exceed the anticipated costs; and
deleted text begin (c)deleted text end new text begin (3)new text end in the case of assistance to private enterprise, the project will serve a sound
business purpose.
new text begin (b) new text end Each project must be approved by deleted text begin over one-half of all of the members of the board
anddeleted text end the commissioner of Iron Range resources and rehabilitationnew text begin after seeking a
recommendation from the board for the projectnew text end . The list of projects shall be submitted to
the governor, who shall, by November 15 of each year, approve or disapprove, or return
for further consideration, each project. The money for a project may be expended only upon
approval of the project by the governor. The deleted text begin boarddeleted text end new text begin commissionernew text end may submit new text begin a new text end supplemental
deleted text begin projectsdeleted text end new text begin projectnew text end for approval at any timenew text begin after seeking a recommendation for the project
from the boardnew text end .
Sec. 27.
Minnesota Statutes 2016, section 298.296, subdivision 2, is amended to read:
Subd. 2.
Expenditure of funds.
(a) Before January 1, 2028, funds may be expended on
projects and for administration of the trust fund only from the net interest, earnings, and
dividends arising from the investment of the trust at any time, including net interest, earnings,
and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for
use in fiscal year 1983, except that any amount required to be paid out of the trust fund to
provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and
to make school bond payments and payments to recipients of taconite production tax proceeds
pursuant to section 298.225, may be taken from the corpus of the trust.
(b) Additionally, upon recommendation by thenew text begin commissioner after seeking a
recommendation from thenew text end board, up to $13,000,000 from the corpus of the trust may be
made available for use as provided in subdivision 4, and up to $10,000,000 from the corpus
of the trust may be made available for use as provided in section 298.2961.
(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8,
section 17, may be expended on projects. Funds may be expended for projects under this
paragraph only if the project:
(1) is for the purposes established under section 298.292, subdivision 1, clause (1) or
(2); and
(2) is approved by deleted text begin two-thirds of all of the members ofdeleted text end new text begin the commissioner after seeking
a recommendation fromnew text end the board.
No money made available under this paragraph or paragraph (d) can be used for
administrative or operating expenses of the Iron Range Resources and Rehabilitation Board
or expenses relating to any facilities owned or operated by the board on May 18, 2002.
(d) Upon recommendation by deleted text begin a unanimous vote of all membersdeleted text end new text begin the commissioner after
seeking a unanimous recommendationnew text end of the board, amounts in addition to those authorized
under paragraphs (a), (b), and (c) may be expended on projects described in section 298.292,
subdivision 1.
(e) Annual administrative costs, not including detailed engineering expenses for the
projects, shall not exceed five percent of the net interest, dividends, and earnings arising
from the trust in the preceding fiscal year.
(f) Principal and interest received in repayment of loans made pursuant to this section,
and earnings on other investments made under section 298.292, subdivision 2, clause (4),
shall be deposited in the state treasury and credited to the trust. These receipts are
appropriated to the board for the purposes of sections 298.291 to 298.298.
(g) Additionally, notwithstanding section 298.293, upon the approval of new text begin the commissioner
of Iron Range resources and rehabilitation, after seeking a recommendation from new text end the board,
money from the corpus of the trust may be expanded to purchase forest lands within the
taconite assistance area as provided in sections 298.22, subdivision 5a, and 298.292,
subdivision 2, clause (5).
Sec. 28.
Minnesota Statutes 2016, section 298.296, subdivision 4, is amended to read:
Subd. 4.
Temporary loan authority.
(a) new text begin After seeking a recommendation from new text end the
boardnew text begin , the commissioner of Iron Range resources and rehabilitation new text end may deleted text begin recommend thatdeleted text end new text begin
usenew text end up to $7,500,000 from the corpus of the trust may be deleted text begin useddeleted text end for loans, loan guarantees,
grants, or equity investments as provided in this subdivision. The money would be available
for loans for construction and equipping of facilities constituting (1) a value added iron
products plant, which may be either a new plant or a facility incorporated into an existing
plant that produces iron upgraded to a minimum of 75 percent iron content or any iron alloy
with a total minimum metallic content of 90 percent; or (2) a new mine or minerals processing
plant for any mineral subject to the net proceeds tax imposed under section 298.015. A loan
or loan guarantee under this paragraph may not exceed $5,000,000 for any facility.
(b) Additionally, the deleted text begin boarddeleted text end new text begin commissioner of Iron Range resources and rehabilitationnew text end
must reserve the first $2,000,000 of the net interest, dividends, and earnings arising from
the investment of the trust after June 30, 1996, to be used for grants, loans, loan guarantees,
or equity investments for the purposes set forth in paragraph (a). This amount must be
reserved until it is used as described in this subdivision.
(c) Additionally, the deleted text begin boarddeleted text end new text begin commissionernew text end may recommend that up to $5,500,000 from
the corpus of the trust may be used for additional grants, loans, loan guarantees, or equity
investments for the purposes set forth in paragraph (a).
(d) The new text begin commissioner of Iron Range resources and rehabilitation, after seeking a
recommendation from the new text end boardnew text begin ,new text end may require that deleted text begin itdeleted text end new text begin the boardnew text end receive an equity percentage
in any project to which it contributes under this section.
Sec. 29.
Minnesota Statutes 2016, section 298.2961, subdivision 2, is amended to read:
Subd. 2.
Projects; approval.
(a) Projects funded must be for:
(1) environmentally unique reclamation projects; or
(2) pit or plant repairs, expansions, or modernizations other than for a value added iron
products plant.
(b) deleted text begin To be proposed by the board, a project must be approved bydeleted text end new text begin Before the commissioner
may propose a project, the commissioner must seek a recommendation fromnew text end the board. The
money for a project may be spent only upon approval of the project by the governor. The
deleted text begin boarddeleted text end new text begin commissionernew text end may submit new text begin a new text end supplemental deleted text begin projectsdeleted text end new text begin projectnew text end for approval at any timenew text begin
after seeking a recommendation for the project from the boardnew text end .
(c) The deleted text begin boarddeleted text end new text begin commissionernew text end may require that deleted text begin itdeleted text end new text begin the boardnew text end receive an equity percentage
in any project to which it contributes under this section.
Sec. 30.
Minnesota Statutes 2016, section 298.2961, subdivision 4, is amended to read:
Subd. 4.
Grant and loan fund.
(a) A fund is established to receive distributions under
section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision.
Any grant or loan made under this subdivision must new text begin first new text end be approved by the new text begin commissioner
after seeking a recommendation from the new text end board, established under section 298.22.
(b) All distributions received in 2009 and subsequent years are allocated for projects
under section 298.223, subdivision 1.
Sec. 31.
Minnesota Statutes 2016, section 298.298, is amended to read:
298.298 LONG-RANGE PLAN.
Consistent with the policy established in sections 298.291 to 298.298, the Iron Range
Resources and Rehabilitation Board shall prepare and present to the governor and the
legislature by December 31, 2006, a long-range plan for the use of the Douglas J. Johnson
economic protection trust fund for the economic development and diversification of the
taconite assistance area defined in section 273.1341. No project shall be deleted text begin approveddeleted text end new text begin
recommendednew text end by the Iron Range Resources and Rehabilitation Board deleted text begin whichdeleted text end new text begin if the board
finds that the projectnew text end is not consistent with the goals and objectives established in the
long-range plan.
Sec. 32.
Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:
Subd. 2.
Unmined iron ore; valuation petition.
When in the opinion of the duly
constituted authorities of a taxing district there are in existence reserves of unmined iron
ore located in such district, these authorities may petition the new text begin commissioner of new text end Iron Range
resources and rehabilitation deleted text begin Boarddeleted text end for authority to petition the county assessor to verify the
existence of such reserves and to ascertain the value thereof by drilling in a manner consistent
with established engineering and geological exploration methods, in order that such taxing
district may be able to forecast in a proper manner its future economic and fiscal potentials.new text begin
The commissioner of Iron Range resources and rehabilitation may grant the authority to
petition after seeking a recommendation from the Iron Range Resources and Rehabilitation
Board.
new text end
Sec. 33. new text begin IRON RANGE RESOURCES AND REHABILITATION BOARD; EARLY
SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
new text end
new text begin
(a) "Commissioner" as used in this section means the commissioner of the Iron Range
Resources and Rehabilitation Board unless otherwise specified.
new text end
new text begin
(b) Notwithstanding any law to the contrary, the commissioner, in consultation with the
commissioner of management and budget, shall offer a targeted early separation incentive
program for employees of the commissioner who have attained the age of 60 years or who
have received credit for at least 30 years of allowable service under the provisions of
Minnesota Statutes, chapter 352. The commissioner shall also offer a targeted separation
incentive program for employees of the commissioner whose positions are in support of
operations at Giants Ridge and will be eliminated if the agency no longer directly manages
Giants Ridge operations.
new text end
new text begin
(c) The early separation incentive program may include one or more of the following:
new text end
new text begin
(1) employer-paid postseparation health, medical, and dental insurance until age 65; and
new text end
new text begin
(2) cash incentives that may, but are not required to be, used to purchase additional years
of service credit through the Minnesota State Retirement System, to the extent that the
purchases are otherwise authorized by law.
new text end
new text begin
(d) The commissioner shall establish eligibility requirements for employees to receive
an incentive.
new text end
new text begin
(e) The commissioner, consistent with the established program provisions under paragraph
(b), and with the eligibility requirements under paragraph (f), may designate specific
programs or employees as eligible to be offered the incentive program.
new text end
new text begin
(f) Acceptance of the offered incentive must be voluntary on the part of the employee
and must be in writing. The incentive may only be offered at the sole discretion of the
commissioner.
new text end
new text begin
(g) The cost of the incentive is payable solely by funds made available to the
commissioner by law, but only on prior approval of the expenditures by the commissioner,
after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.
new text end
new text begin
(h) Unilateral implementation of this section by the commissioner is not an unfair labor
practice under Minnesota Statutes, chapter 179A.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment. This
section is repealed July 30, 2018.
new text end
Sec. 34. new text begin REVISOR'S INSTRUCTION.
new text end
new text begin
The revisor of statutes shall identify and propose necessary changes to Minnesota Statutes
and Minnesota Rules that are consistent with the goals of this act to (i) transfer discretionary
approval authority for all expenditures and projects from the Iron Range Resources and
Rehabilitation Board to the commissioner of Iron Range resources and rehabilitation, and
(ii) provide that the commissioner must, in good faith, seek the review and recommendation
of the board, as required, before exercising approval authority. The revisor shall submit the
proposal, in a form ready for introduction, during the 2017 regular legislative session to the
chairs and ranking minority members of the senate and house of representatives committees
with jurisdiction over taxes.
new text end
ARTICLE 10
SUSTAINABLE FOREST INCENTIVE ACT MODIFICATIONS
Section 1.
Minnesota Statutes 2016, section 290C.01, is amended to read:
290C.01 PURPOSE.
It is the policy of this state to promote sustainable forest resource management on the
state's public and private lands. deleted text begin Recognizing thatdeleted text end new text begin The state'snew text end private forests comprise
approximately one-half of the state forest land resourcesdeleted text begin , that healthy and robust forest land
provides significant benefits to the state of Minnesota, and that addeleted text end new text begin . These forests play a
critical role in protecting water quality and soil resources, and provide extensive wildlife
habitat, diverse recreational experiences, and significant forest products that support the
state's economy. Adnew text end valorem property taxes represent a significant annual cost that can
discourage long-term forest management investmentsnew text begin . In order to foster silviculture
investments and retain these forests for their economic and ecological benefitsnew text end , this chapter,
hereafter referred to as the "Sustainable Forest Incentive Act," is enacted to encourage the
state's private forest landowners to make a long-term commitment to sustainable forest
management.
Sec. 2.
Minnesota Statutes 2016, section 290C.02, subdivision 1, is amended to read:
Subdivision 1.
Application.
When used in sections 290C.01 to deleted text begin 290C.11deleted text end new text begin 290C.13new text end , the
terms in this section have the meanings given them.
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 2016, section 290C.02, subdivision 3, is amended to read:
Subd. 3.
Claimant.
(a) "Claimant" means:
(1) a person, as that term is defined in section 290.01, subdivision 2, who owns forest
land in Minnesota and files an application authorized by the Sustainable Forest Incentive
Act;
(2) a purchaser or grantee if property enrolled in the program was sold or transferred
after the original application was filed and prior to the annual incentive payment being
made; or
(3) an owner of land previously covered by an auxiliary forest contract that automatically
qualifies for inclusion in the Sustainable Forest Incentive Act program pursuant to section
88.49, subdivision 9a, or 88.491, subdivision 2.
deleted text begin The purchaser or grantee must notify the commissioner in writing of the sale or transfer
of the property.deleted text end new text begin (b)new text end Owners of land that qualifies for inclusion pursuant to section 88.49,
subdivision 9a, or 88.491, subdivision 2, must notify the commissioner in writing of the
expiration of the auxiliary forest contract or land trade with a governmental unit and submit
an application to the commissioner by deleted text begin August 15deleted text end new text begin July 1new text end in order to be eligible to receive a
payment by October 1 of that same year. For purposes of section 290C.11, claimant also
includes any person bound by the covenant required in section 290C.04.
deleted text begin (b)deleted text end new text begin (c)new text end No more than one claimant is entitled to a payment under this chapter with respect
to any tract, parcel, or piece of land enrolled under this chapter that has been assigned the
same parcel identification number. When enrolled forest land is owned by two or more
persons, the owners must determine between them which person is eligible to claim the
payments provided under sections 290C.01 to deleted text begin 290C.11deleted text end new text begin 209C.13new text end . In the case of property
sold or transferred, the former owner and the purchaser or grantee must determine between
them which person is eligible to claim the payments provided under sections 290C.01 to
deleted text begin 290C.11deleted text end new text begin 209C.13new text end . The owners, transferees, or grantees must notify the commissioner in
writing which person is eligible to claim the payments.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for certifications and applications due
in 2018 and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2016, section 290C.02, subdivision 6, is amended to read:
Subd. 6.
Forest land.
"Forest land" means land containing a minimum of 20 contiguous
acres for which the owner has implemented a forest management plan that was prepared or
updated within the past ten years by an approved plan writer. For purposes of this subdivision,
acres are considered to be contiguous even if they are separated by a road, waterway, railroad
track, or other similar intervening property. At least 50 percent of the contiguous acreage
must meet the definition of forest land in section 88.01, subdivision 7. For the purposes of
sections 290C.01 to deleted text begin 290C.11deleted text end new text begin 209C.13new text end , forest land does not include (i) land used for
residential or agricultural purposes, (ii) land enrolled in the reinvest in Minnesota program,
a state or federal conservation reserve or easement reserve program under sections 103F.501
to 103F.531, the Minnesota agricultural property tax law under section 273.111, or land
subject to agricultural land preservation controls or restrictions as defined in section 40A.02
or under the Metropolitan Agricultural Preserves Act under chapter 473H, (iii) deleted text begin land exceeding
60,000 acres that is subject to a single conservation easement funded under section 97A.056
or a comparable permanent easement conveyed to a governmental or nonprofit entity; (iv)deleted text end
any land that becomes subject to a conservation easement funded under section 97A.056
or a comparable permanent easement conveyed to a governmental or nonprofit entity after
May 30, 2013; or deleted text begin (v)deleted text end new text begin (iv) new text end land improved with a structuredeleted text begin ,deleted text end new text begin ;new text end pavement, new text begin other than a paved
trail under easement, lease, or terminable license to the state of Minnesota or a political
subdivision; new text end sewerdeleted text begin ,deleted text end new text begin ;new text end campsitedeleted text begin ,deleted text end new text begin ;new text end or any road, other than a township road, used for purposes
not prescribed in the forest management plan.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications made in 2018 and
thereafter.
new text end
Sec. 5.
Minnesota Statutes 2016, section 290C.03, is amended to read:
290C.03 ELIGIBILITY REQUIREMENTS.
(a) Land may be enrolled in the sustainable forest incentive program under this chapter
if all of the following conditions are met:
(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land
must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment;
(2) a forest management plan for the land must be prepared by an approved plan writer
and implemented during the period in which the land is enrolled;
(3) timber harvesting and forest management guidelines must be used in conjunction
with any timber harvesting or forest management activities conducted on the land during
the period in which the land is enrolled;
(4) the land must be enrolled for a minimum of eight years;
(5) there are no delinquent property taxes on the land; deleted text begin and
deleted text end
(6) claimants enrolling more than 1,920 acresnew text begin or enrolling any land that is subject to a
conservation easement funded under section 97A.056, or a comparable permanent easement
conveyed to a governmental or nonprofit entitynew text end in the sustainable forest incentive program
must allow year-round, nonmotorized access to fish and wildlife resources and motorized
access on established and maintained roads and trails, unless the road or trail is temporarily
closed for safety, natural resource, or road damage reasons on enrolled land except within
one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined
by the commissioner of natural resourcesdeleted text begin .deleted text end new text begin ;
new text end
new text begin
(7) the claimant has registered the forest management plan under clause (2) with the
commissioner of natural resources, who has determined that the land meets qualifications
for enrollment; and
new text end
new text begin
(8) no portion of the parcel containing the enrolled land is classified as class 2c managed
forest land.
new text end
(b) Claimants required to allow access under paragraph (a), clause (6), do not by that
action:
(1) extend any assurance that the land is safe for any purpose;
(2) confer upon the person the legal status of an invitee or licensee to whom a duty of
care is owed; or
(3) assume responsibility for or incur liability for any injury to the person or property
caused by an act or omission of the person.
new text begin
(c) The commissioner of natural resources shall annually provide county assessors
verification information regarding plan registration under paragraph (a), clause (7), on a
timely basis.
new text end
new text begin
(d) A minimum of three acres must be excluded from enrolled land when the land is
improved with a structure that is not a minor, ancillary, and nonresidential structure.
new text end
new text begin
(e) If land does not meet the definition of forest land in section 290C.02, subdivision 6,
because the land is:
new text end
new text begin
(1) enrolled in a state or federal conservation reserve or easement program under sections
103F.501 to 103F.531;
new text end
new text begin
(2) subject to the Minnesota agricultural property tax under section 273.111; or
new text end
new text begin
(3) subject to agricultural land preservation controls or restrictions as defined in section
40A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H, the entire tax
parcel that contains the land is not eligible to be enrolled in the program.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for certifications and applications due
in 2018 and thereafter.
new text end
Sec. 6.
Minnesota Statutes 2016, section 290C.04, is amended to read:
290C.04 APPLICATIONS.
(a) A landowner may apply to enroll forest land for the sustainable forest incentive
program under this chapter. The claimant must complete, sign, and submit an application
to the commissioner by deleted text begin September 30deleted text end new text begin October 31new text end in order for the land to become eligible
beginning in the next year. The application shall be on a form prescribed by the deleted text begin commissioner
deleted text end new text begin commissioners of revenue and natural resources new text end and must include the information the
deleted text begin commissioner deemsdeleted text end new text begin commissioners deemnew text end necessary. At a minimum, the application must
show the following information for the land and the claimant: (i) the claimant's Social
Security number or state or federal business tax registration number and date of birth, (ii)
the claimant's address, (iii) the claimant's signature, (iv) the county's parcel identification
numbers for the tax parcels that completely contain the claimant's forest land that is sought
to be enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the
approved plan writer's signature and identification number, deleted text begin anddeleted text end (vii) proof, in a form specified
by the commissioner, that the claimant has executed and acknowledged in the manner
required by law for a deed, and recorded, a covenant that the land is not and shall not be
developed in a manner inconsistent with the requirements and conditions of this chapternew text begin ,
and (viii) a registration number for the forest management plan, issued by the commissioner
of natural resourcesnew text end . The covenant shall state in writing that the covenant is binding on the
claimant and the claimant's successor or assignee, and that it runs with the land for a period
of not less than eight yearsnew text begin unless the claimant requests termination of the covenant after a
reduction in payments due to changes in the payment formula under section 290C.07 or as
a result of executive action, the amount of payment a claimant is eligible to receive under
section 290C.07 is reduced or limitednew text end . The commissioner shall specify the form of the
covenant and provide copies upon request. The covenant must include a legal description
that encompasses all the forest land that the claimant wishes to enroll under this section or
the certificate of title number for that land if it is registered land.new text begin The commissioner of
natural resources shall record the area eligible for enrollment into the Sustainable Forest
Incentive Act as electronic geospatial data, as defined in section 16E.30, subdivision 10.
new text end
new text begin
(b) The commissioner shall provide by electronic means data sufficient for the
commissioner of natural resources to determine whether the applicant qualifies for enrollment.
The commissioner must make the data available within 30 days of receipt of the application
filed by the claimant or by October 1, whichever is sooner. The commissioner of natural
resources must notify the commissioner whether the applicant qualifies for enrollment within
30 days of the data being available, and if the applicant qualifies for enrollment, the
commissioner of natural resources shall specify the number of qualifying acres per tax
parcel.
new text end
deleted text begin (b) In all cases,deleted text end new text begin (c)new text end The commissioner shall notify the claimant within 90 days after
receipt of a completed application that either the land has or has not been approved for
enrollment. A claimant whose application is denied may appeal the denial as provided in
section 290C.13.
deleted text begin (c)deleted text end new text begin (d)new text end Within 90 days after the denial of an application, or within 90 days after the final
resolution of any appeal related to the denial, the commissioner shall execute and
acknowledge a document releasing the land from the covenant required under this chapter.
The document must be mailed to the claimant and is entitled to be recorded.
deleted text begin (d)deleted text end new text begin (e)new text end The Social Security numbers collected from individuals under this section are
private data as provided in section 13.355. The federal business tax registration number and
date of birth data collected under this section are also private data on individuals or nonpublic
data, as defined in section 13.02, subdivisions 9 and 12, but may be shared with county
assessors for purposes of tax administration and with county treasurers for purposes of the
revenue recapture under chapter 270A.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for certifications and applications due
in 2018 and thereafter.
new text end
Sec. 7.
Minnesota Statutes 2016, section 290C.05, is amended to read:
290C.05 ANNUAL CERTIFICATIONnew text begin AND MONITORINGnew text end .
new text begin (a) new text end On or before deleted text begin July 1deleted text end new text begin May 15new text end of each year, beginning with the year after the original
claimant has received an approved application, the commissioner shall send each claimant
enrolled under the sustainable forest incentive program a certification form. For purposes
of this section, the deleted text begin originaldeleted text end claimant is the deleted text begin person that filed the first application under section
290C.04 to enroll the land in the programdeleted text end new text begin current property owner on record, or the person
designated by the owners in the case of multiple ownershipnew text end . The claimant must sign new text begin and
returnnew text end the certificationdeleted text begin , attestingdeleted text end new text begin to the commissioner by July 1 of that same year, and (1)
attestnew text end that the requirements and conditions for continued enrollment in the program are
currently being met, and deleted text begin must return the signed certification form to the commissioner by
August 15 of that same yeardeleted text end new text begin (2) provide a report in the form and manner determined by the
commissioner of natural resources describing the management practices that have been
carried out on the enrolled property during the prior yearnew text end . If the claimant does not return an
annual certification form by the due date, the provisions in section 290C.11 apply.new text begin The
commissioner of natural resources must verify that the claimant meets program requirements.
new text end
new text begin
(b) The commissioner must provide the certification form and annual report described
in paragraph (a), clause (2), to the commissioner of natural resources by August 1.
new text end
new text begin
(c) The commissioner of natural resources must conduct annual monitoring of a subset
of claimants, excluding land also enrolled in a conservation easement program. Claimants
will be selected for monitoring based on reported violations, annual certification, and random
selections. Monitoring will be conducted on ten percent of claimants as of July 1 of each
year. Monitoring may include, but is not limited to, a site visit by a Department of Natural
Resources or contracted forester. The commissioner of natural resources must develop a
monitoring form to record the monitoring data.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
Paragraphs (a) and (b) are effective for certifications and
applications due in 2018 and thereafter. Paragraph (c) is effective July 1, 2019.
new text end
Sec. 8.
Minnesota Statutes 2016, section 290C.055, is amended to read:
290C.055 LENGTH OF COVENANT.
(a) deleted text begin The covenant remains in effect for a minimum of eight years.deleted text end new text begin Claimants enrolling
any land that is subject to a conservation easement funded under section 97A.056 or a
comparable permanent easement conveyed to a governmental or nonprofit entity must enroll
their land under a covenant with a minimum duration of eight years. All other claimants
may choose to enroll their land under a covenant with a minimum duration of eight, 20, or
50 years. new text end If deleted text begin land is removeddeleted text end new text begin the claimant requests removal of landnew text end from the program before
it has been enrolled for deleted text begin four yearsdeleted text end new text begin one-half the number of years of the covenant's durationnew text end ,
the covenant remains in effect for deleted text begin eight yearsdeleted text end new text begin the entire duration of the covenant new text end from the
date recorded.
(b) If land that has been enrolled for deleted text begin four yearsdeleted text end new text begin one-half the number of years of the
covenant's minimum durationnew text end or more is removed from the program for any reason, there
is a waiting period before the covenant terminates. The covenant terminates on January 1
of the fifthnew text begin , 11th, or 26thnew text end calendar year new text begin for the eight-, 20-, or 50-year minimum covenant,
respectively, new text end that begins after the date that:
(1) the commissioner receives notification from the claimant that the claimant wishes
to remove the land from the program under section 290C.10; or
(2) the date that the land is removed from the program under section 290C.11.
(c) Notwithstanding the other provisions of this section, the covenant is terminated:
(1) at the same time that the land is removed from the program due to acquisition of title
or possession for a public purpose under section 290C.10; or
(2) at the request of the claimant deleted text begin afterdeleted text end new text begin (i) if there isnew text end a reduction in payments due to
changes in the payment formula under section 290C.07new text begin ; or (ii) if, as a result of executive
action, the amount of payment a claimant is eligible to receive under section 290C.07 is
reduced or limitednew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for certifications and applications in
2018 and thereafter.
new text end
Sec. 9.
Minnesota Statutes 2016, section 290C.07, is amended to read:
290C.07 CALCULATION OF INCENTIVE PAYMENT.
new text begin (a) new text end An approved claimant under the sustainable forest incentive program is eligible to
receive an annual paymentnew text begin for each acre of enrolled land, excluding any acre improved with
a paved trail under easement, lease, or terminable license to the state of Minnesota or a
political subdivisionnew text end . The payment shall equal deleted text begin $7 per acre for each acre enrolled in the
sustainable forest incentive program.deleted text end new text begin a percentage of the property tax that would be paid
on the land determined by using the previous year's statewide average total tax rate for all
taxes levied within townships and unorganized territories, the estimated market value per
acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for
claimants enrolling land that is subject to a conservation easement funded under section
97A.056 or a comparable permanent easement conveyed to a governmental or nonprofit
entity before May 31, 2013, 25 percent; (2) for claimants enrolling land that is not subject
to a conservation easement under an eight-year covenant, 65 percent; (3) for claimants
enrolling land that is not subject to a conservation easement under a 20-year covenant, 90
percent; and (4) for claimants enrolling land that is not subject to a conservation easement
under a 50-year covenant, 115 percent.
new text end
new text begin
(b) The calculated payment shall not be less than the payment received in 2017 and shall
not increase or decrease by more than ten percent relative to the payment received for the
previous year.
new text end
new text begin
(c) In addition to the payments provided under this section, a claimant enrolling more
than 1,920 acres shall be allowed an additional payment per acre equal to the amount
prescribed in paragraph (a), clause (1), for all acres of enrolled land on which public access
is allowed, as required under section 290C.03, paragraph (a), clause (6), excluding any land
subject to a conservation easement funded under section 97A.056, or a permanent easement
conveyed to a governmental or nonprofit entity that is required to allow for public access
under section 290C.03, paragraph (a), clause (6).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for calculations made in 2018 and
thereafter.
new text end
Sec. 10.
Minnesota Statutes 2016, section 290C.08, subdivision 1, is amended to read:
Subdivision 1.
Annual payment.
An incentive payment for each acre of enrolled land
will be made annually to each claimant in the amount determined under section 290C.07.
new text begin By September 15 of each year, the commissioner of natural resources will certify to the
commissioner the eligibility of each claimant to receive a payment. new text end The incentive payment
shall be paidnew text begin by the commissionernew text end on or before October 1 each year based on the certifications
due deleted text begin August 15deleted text end new text begin July 1new text end of that year. Interest at the annual rate determined under section
270C.40 shall be included with any incentive payment not paid by the later of October 1 of
the year the certification was due, or 45 days after the completed certification was returned
or filed if the commissioner accepts a certification filed after deleted text begin August 15deleted text end new text begin July 1new text end of the taxes
payable year as the resolution of an appeal.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for certifications and applications due
in 2018 and thereafter.
new text end
Sec. 11.
Minnesota Statutes 2016, section 290C.10, is amended to read:
290C.10 WITHDRAWAL PROCEDURES.
deleted text begin An approved claimantdeleted text end new text begin (a) The current owner of land enrollednew text end under the sustainable forest
incentive program for a minimum of deleted text begin four yearsdeleted text end new text begin one-half the number of years of the covenant's
minimum durationnew text end may notify the commissioner of the intent to terminate enrollment. Within
90 days of receipt of notice to terminate enrollment, the commissioner shall inform the
claimant in writing, acknowledging receipt of this notice and indicating the effective date
of termination from the sustainable forest incentive program. Termination of enrollment in
the sustainable forest incentive program occurs on January 1 of the fifthnew text begin , 11th, or 26thnew text end
calendar yearnew text begin for the eight-, 20-, or 50-year respective minimum covenantnew text end that begins after
receipt by the commissioner of the termination notice. After the commissioner issues an
effective date of termination, a claimant wishing to continue the land's enrollment in the
sustainable forest incentive program beyond the termination date must apply for enrollment
as prescribed in section 290C.04. A claimant who withdraws a parcel of land from this
program may not reenroll the parcel for a period of three years. Within 90 days after the
termination date, the commissioner shall execute and acknowledge a document releasing
the land from the covenant required under this chapter. The document must be mailed to
the claimant and is entitled to be recorded.
new text begin (b) Notwithstanding paragraph (a), on request of the claimant, new text end the commissioner may
allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the
state of Minnesota, any local government unit, or any other entity which has the power of
eminent domain acquires title or possession to the land for a public purpose deleted text begin notwithstanding
the provisions of this sectiondeleted text end . In the case of deleted text begin suchdeleted text end new text begin an eligiblenew text end acquisitionnew text begin under this paragraphnew text end ,
the commissioner shall execute and acknowledge a document releasing the land acquired
by the state, local government unit, or other entity from the covenant.
new text begin
(c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall
allow early withdrawal from the Sustainable Forest Incentive Act without penalty when a
government or nonprofit entity acquires a permanent conservation easement on the enrolled
property and the conservation easement is at least as restrictive as the covenant required
under section 290C.04. The commissioner of natural resources must notify the commissioner
of lands acquired under this paragraph that are eligible for withdrawal. In the case of an
eligible easement acquisition under this paragraph, the commissioner shall execute and
acknowledge a document releasing the land subject to the easement from the covenant.
new text end
new text begin
(d) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall
allow early withdrawal from the Sustainable Forest Incentive Act without penalty for land
that is subject to fee or easement acquisition or lease to the state of Minnesota or a political
subdivision of the state for the public purpose of a paved trail. The commissioner of natural
resources must notify the commissioner of lands acquired under this paragraph that are
eligible for withdrawal. In the case of an eligible fee or easement acquisition or lease under
this paragraph, the commissioner shall execute and acknowledge a document releasing the
land subject to fee or easement acquisition or lease by the state or political subdivision of
the state.
new text end
new text begin (e)new text end All other enrolled land must remain in the program.
new text begin EFFECTIVE DATE. new text end
new text begin
The amendments to paragraphs (c) and (d) are effective the day
following final enactment. The amendments to paragraphs (a), (b), and (e) are effective for
notifications made in 2018 and thereafter.
new text end
Sec. 12.
new text begin
[290C.101] TRANSFER OF OWNERSHIP.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings provided.
new text end
new text begin
(b) "New owner" means a prospective purchaser or grantee.
new text end
new text begin
(c) "Owner" means a grantor or seller.
new text end
new text begin Subd. 2. new text end
new text begin Notification to commissioner. new text end
new text begin
(a) An owner must notify the commissioner if
the owner transfers any or all of the owner's land enrolled in the sustainable forest incentive
program to one or more new owners within 60 days of the transfer of title to the property.
The notification must include the legal descriptions of the transferred property, the tax parcel
numbers, and the name and address of the new owner. If transfer of ownership is a result
of the death of the claimant, the provisions of section 290C.12 shall apply.
new text end
new text begin
(b) Upon notification, the commissioner shall inform the new owner of the restrictions
of the covenant required by section 290C.04 and the withdrawal procedures under section
290C.10. In order for the new owner to receive payments pursuant to this chapter, the new
owner must file an application and register a new forest management plan with the
commissioner of natural resources within two years from the date the title of the property
was transferred to remain eligible.
new text end
new text begin Subd. 3. new text end
new text begin Termination of enrollment. new text end
new text begin
The commissioner will terminate enrollment
according to the procedure in section 290C.10 for failure of the new owner to register a
forest management plan within the time period in subdivision 2, paragraph (b).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2017.
new text end
Sec. 13.
Minnesota Statutes 2016, section 290C.11, is amended to read:
290C.11 PENALTIES FOR REMOVAL.
(a) If the commissioner determines that land enrolled in the sustainable forest incentive
program is in violation of the conditions for enrollment as specified in section 290C.03,new text begin or
upon notification by the commissioner of natural resources that land enrolled is in violation
of the conditions for enrollment,new text end the commissioner shall notify the deleted text begin claimantdeleted text end new text begin current owner
of the landnew text end of the intent to remove deleted text begin alldeleted text end new text begin the tax parcel of thenew text end enrolled land new text begin where the violation
has occurred new text end from the sustainable forest incentive program. new text begin The penalties described under
paragraph (c) apply. new text end The deleted text begin claimantdeleted text end new text begin current ownernew text end has 60 days to appeal this determination
under the provisions of section 290C.13.
(b) If the commissioner determines the land is to be removed from the sustainable forest
incentive programnew text begin due to the construction or addition of an improvement to the propertynew text end ,
the deleted text begin claimantdeleted text end new text begin owner of the tax parcel that is in violationnew text end is liable for payment to the
commissioner in the amount equal tonew text begin : (1) new text end the payments deleted text begin receiveddeleted text end new text begin issued related to the enrolled
tax parcelnew text end under this chapter for the deleted text begin previous four-year perioddeleted text end new text begin number of years the land has
been bound by covenant, or half the covenant length, whichever is lessnew text end , plus interestnew text begin ; and
(2) 25 percent of the estimated market value of the property as reclassified under section
273.13 due to the structure being on the tax parcel, as determined by the assessornew text end .
new text begin
(c) If the commissioner of natural resources determines that the land is used for purposes
other than forestry purposes, the commissioner of natural resources shall notify the
commissioner of revenue, who shall notify the current owner of the tax parcel that is in
violation that the current owner is liable to the commissioner in an amount equal to: (1) 30
percent of the estimated market value as property reclassified under section 273.13, due to
the change in use, as determined by the assessor; and (2) the payments issued related to the
enrolled tax parcel under this chapter for the number of years the land has been bound by
covenant, or half the covenant length, whichever is less, plus interest.
new text end
new text begin (d)new text end The claimant has 90 days to satisfy the payment for removal of land from the
sustainable forest incentive program under this section. If the penalty is not paid within the
90-day period under this paragraph, the commissioner shall certify the amount to the county
auditor for collection as a part of the general ad valorem real property taxes on the land in
the following taxes payable year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for certifications and applications due
in 2018 and thereafter.
new text end
Sec. 14.
Minnesota Statutes 2016, section 290C.13, subdivision 6, is amended to read:
Subd. 6.
Determination of appeal.
On the basis of applicable law and available
information, the commissioner shall determine the validity, if any, in whole or in part, of
the appeal and notify the claimant of the decision. This notice must be in writing and contain
the basis for the determination.new text begin The commissioner shall consult with the commissioner of
natural resources when an appeal relates to the use of the property for forestry or nonforestry
purposes and for appeals related to forest management plans.
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. 15.
Laws 2016, chapter 187, section 5, the effective date, is amended to read:
EFFECTIVE DATE.
This section is effective for orders and notices dated after
deleted text begin September 30, 2015deleted text end new text begin December 31, 2017new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from September 30, 2015.
new text end
Sec. 16. new text begin SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION PROVISION.
new text end
new text begin
(a) For lands enrolled in the Sustainable Forest Incentive Act on December 31, 2017,
the owner of enrolled lands may elect through May 15, 2019, and without penalty, to change
the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055. The owner
of enrolled land must provide notice to the Department of Revenue of its intent to change
the length of its covenant.
new text end
new text begin
(b) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the
owner of enrolled land must comply with the changes made in the act by certifications due
in 2018, as required under Minnesota Statutes, section 290C.05.
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. 17. new text begin ADMINISTRATIVE APPROPRIATION.
new text end
new text begin
$600,000 in fiscal year 2017 is appropriated from the general fund to the commissioner
of natural resources for administering Minnesota Statutes, chapter 290C, and section 477A.19.
The funding base for administering Minnesota Statutes, chapter 290C, and section 477A.19,
in fiscal year 2018 and thereafter is $600,000.
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. 18. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2016, section 290C.02, subdivisions 5 and 9,
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 the day following final enactment.
new text end
ARTICLE 11
MISCELLANEOUS
Section 1.
Minnesota Statutes 2016, section 16A.152, subdivision 2, is amended to read:
Subd. 2.
Additional revenues; priority.
(a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of management and budget determines that
there will be a positive unrestricted budgetary general fund balance at the close of the
biennium, the commissioner of management and budget must allocate money to the following
accounts and purposes in priority order:
(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;
(2) the budget reserve account established in subdivision 1a until that account reaches
deleted text begin $1,596,522,000deleted text end new text begin $1,930,388,000new text end ;
(3) the amount necessary to increase the aid payment schedule for school district aids
and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest
tenth of a percent without exceeding the amount available and with any remaining funds
deposited in the budget reserve; and
(4) the amount necessary to restore all or a portion of the net aid reductions under section
127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
subdivision 5, by the same amount.
(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.
(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.
The commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2017.
new text end
Sec. 2.
new text begin
[116J.952] NEW MARKETS GRANT PROGRAM.
new text end
new text begin Subdivision 1. new text end
new text begin Grant program established. new text end
new text begin
The commissioner shall award new markets
grants for qualified low-income community investments as specified under this section.
The commissioner shall adopt rules to establish criteria for determining grant eligibility.
new text end
new text begin Subd. 2. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have the
meanings given.
new text end
new text begin
(b) "Applicant" means a qualified community development entity as defined in paragraph
(h).
new text end
new text begin
(c) "Commissioner" means the commissioner of employment and economic development.
new text end
new text begin
(d) "Greater Minnesota" means the area of the state that excludes the metropolitan area,
as defined in section 473.121, subdivision 2.
new text end
new text begin
(e) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.
new text end
new text begin
(f) "Qualified active low-income community business" has the meaning given in section
45D of the Internal Revenue Code. The term does not include:
new text end
new text begin
(1) any trade or business engaged in insurance, banking, lending, lobbying, political
consulting, or leisure; or
new text end
new text begin
(2) any trade or business activity consisting of the operation of any private or commercial
golf course, country club, suntan facility, hot tub facility, massage parlor, race track, or
other facility used for gambling, or any store the principal business of which is the sale of
alcoholic beverages for consumption off premises.
new text end
new text begin
(g) "Low-income communities" as defined in section 45D of the Internal Revenue Code
and applied to any term or requirement used in this section or an incorporated provision of
federal law includes the area of any home rule charter or statutory city that:
new text end
new text begin
(1) is located in greater Minnesota;
new text end
new text begin
(2) has a population, as defined in section 477A.011, subdivision 3, of 500 or more; and
new text end
new text begin
(3) has net tax capacity of property, classified as class 3 under section 273.13, of less
than $500 per capita for property taxes assessed in 2015, payable in 2016, including the
city's distribution net tax capacity and excluding its contribution net tax capacity under
chapter 276A.
new text end
new text begin
(h) "Qualified community development entity" has the meaning given in section 45D
of the Internal Revenue Code, provided that the entity has direct lending experience serving
businesses in disadvantaged communities in the state and a primary mission of economic
development.
new text end
new text begin
(i) "Qualified low-income community investment" means any capital or equity investment
in, or loan to, any qualified active low-income community business.
new text end
new text begin Subd. 3. new text end
new text begin Grant awards. new text end
new text begin
The commissioner shall award grants to qualified community
development entities based on a competitive review of applications received by the
commissioner using criteria established in subdivision 4.
new text end
new text begin Subd. 4. new text end
new text begin Application. new text end
new text begin
(a) The commissioner shall develop an application form requiring
information necessary to evaluate the benefits to Minnesota from awarding the grants.
new text end
new text begin
(b) Prior to awarding grants to an applicant under this subdivision, the commissioner
shall consider the following:
new text end
new text begin
(1) whether the qualified community development entity has demonstrated experience
providing capital or technical assistance to disadvantaged businesses or communities in the
state;
new text end
new text begin
(2) the extent to which an applicant demonstrates direct experience in asset and risk
management and in fulfilling government compliance requirements;
new text end
new text begin
(3) the extent to which an applicant demonstrates a capitalization strategy that ensures
that the economic benefit of the grant allocation remains in the state;
new text end
new text begin
(4) the extent to which the applicant establishes standards for wages and benefits
exceeding federal poverty guidelines and includes a means by which to monitor and measure
ongoing compliance with those standards;
new text end
new text begin
(5) the financial contributions expected to be made to the project from nonstate sources;
and
new text end
new text begin
(6) any other criteria the commissioner deems necessary.
new text end
new text begin Subd. 5. new text end
new text begin Annual reporting by community development entities. new text end
new text begin
A community
development entity that has been awarded a grant must submit an annual report to the
commissioner within 180 days after the end of the fiscal year. The report must include
information on investments made in the preceding year, including but not limited to the
following:
new text end
new text begin
(1) the types of industries, identified by the North American Industry Classification
System Code, in which a qualified low-income community investment was made;
new text end
new text begin
(2) the names of the counties in which the qualified active low-income community
businesses are located which received qualified low-income community investments;
new text end
new text begin
(3) the number of jobs created and retained by qualified active low-income community
businesses receiving qualified low-income community investments, including verification
that the average wages and benefits paid to full-time employees, based on an hourly wage
for a 40-hour work week, meet or exceed 105 percent of the federal poverty income
guidelines for a family of four; and
new text end
new text begin
(4) other information and documentation required by the commissioner to verify continued
certification as a qualified community development entity under United States Code, title
26, section 45D.
new text end
new text begin Subd. 6. new text end
new text begin Application fees; fund created. new text end
new text begin
The qualified community development entity
must submit a nonrefundable application fee at the time the application is submitted equal
to the amount published in the Minnesota new markets grant program application. The
commissioner may allow up to 25 percent of the fee to be submitted up to 180 days following
the grant award and up to 25 percent of the fee to be submitted up to 270 days following
the grant award. Application fees are deposited in the new markets grant program
administration account in the special revenue fund.
new text end
new text begin Subd. 7. new text end
new text begin Administrative fees. new text end
new text begin
Upon the issuance of a qualified low-income community
investment by a qualified community development entity, an administrative fee in an amount
determined by the commissioner and published in the grant agreement must be deposited
in the new markets grant program administration account in the special revenue fund.
new text end
new text begin Subd. 8. new text end
new text begin Administrative expenses. new text end
new text begin
Amounts in the new markets grant program
administration account are appropriated annually to the commissioner for administrative
expenses related to administering the new markets grant program in this section.
new text end
new text begin Subd. 9. new text end
new text begin Annual report. new text end
new text begin
Beginning in 2019 and ending in 2023, the commissioner shall
annually, by January 15, report to the chairs and ranking minority members of the legislative
committees on economic development on the implementation of the grant program, including
an evaluation of the success and economic impact of the program in the state. The report
must include:
new text end
new text begin
(1) the number of women-owned and minority-owned businesses assisted by the grants;
new text end
new text begin
(2) the number of greater Minnesota-located businesses assisted by the grants and the
amount of that assistance;
new text end
new text begin
(3) the number of metropolitan area-located businesses assisted by the grants and the
amount of that assistance;
new text end
new text begin
(4) the number of jobs created by the grants including the number of women and
minorities obtaining jobs; and
new text end
new text begin
(5) the number of jobs created by the grants located in greater Minnesota and in the
metropolitan area.
new text end
new text begin Subd. 10. new text end
new text begin Expiration. new text end
new text begin
This section expires the earlier of July 1, 2024, or when the last
of the grant funds have been awarded. The commissioner must issue the rules for the
implementation of this section to allow commencement of grant awards by January 1, 2018.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2017.
new text end
Sec. 3.
new text begin
[270C.22] TAX TIME SAVINGS GRANT PROGRAM.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Financial capability services" means any of the following:
new text end
new text begin
(1) assistance with opening a savings or transactional account that meets the Federal
Deposit Insurance Corporation's model safe accounts template standards;
new text end
new text begin
(2) assistance with depositing all or part of a tax refund into a savings or transactional
account;
new text end
new text begin
(3) assistance with obtaining and reviewing a consumer report or credit score, as those
terms are defined in United States Code, title 15, section 1681a;
new text end
new text begin
(4) assistance with obtaining and reviewing a banking history report;
new text end
new text begin
(5) financial coaching, or referral to financial coaching services, as provided in section
256E.35, subdivision 4a;
new text end
new text begin
(6) National Foundation for Credit Counseling certified consumer credit and debt
counseling or referral to these services;
new text end
new text begin
(7) enrollment in a matched or incentivized savings program, including the provision
of matching or incentive funds;
new text end
new text begin
(8) assistance with purchasing federal retirement savings bonds, as described in Code
of Federal Regulations, title 31, part 347, or referral to a certified financial planner, registered
investment adviser, licensed insurance producer or agent, or a registered securities
broker-dealer representative for private sector retirement options; or
new text end
new text begin
(9) assistance with purchasing a Series I United States Savings Bond with all or part of
a tax refund.
new text end
new text begin
(c) "Transactional account" means a traditional demand deposit account or a general
purpose reloadable prepaid card offered by a bank or credit union.
new text end
new text begin
(d) "TCE" means the Tax Counseling for the Elderly program established by the Internal
Revenue Service.
new text end
new text begin
(e) "VITA" means the Volunteer Income Tax Assistance program established by the
Internal Revenue Service.
new text end
new text begin Subd. 2. new text end
new text begin Creation. new text end
new text begin
The commissioner of revenue shall establish a tax time savings grant
program to make grants to one or more nonprofit organizations to fund the integration of
financial capability services into the delivery of taxpayer assistance services funded by
grants under section 270C.21.
new text end
new text begin Subd. 3. new text end
new text begin Qualified applicant. new text end
new text begin
To be eligible to receive a grant under the tax time savings
grant program, an applicant must:
new text end
new text begin
(1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered with
the Internal Revenue Service as part of either the VITA or TCE programs; and
new text end
new text begin
(2) commit to dedicate at least one staff or volunteer position to coordinate financial
capability services at a VITA or TCE program site and to offer VITA or TCE program
participants free assistance with the initiation through completion of:
new text end
new text begin
(i) opening a savings and a transactional account that meet the Federal Deposit Insurance
Corporation's model safe accounts template standards;
new text end
new text begin
(ii) depositing all or part of a tax refund into a savings or transactional account; and
new text end
new text begin
(iii) purchasing a Series I United States Savings Bond with all or part of a tax refund.
new text end
new text begin Subd. 4. new text end
new text begin Conflict of interest. new text end
new text begin
(a) No applicant may receive direct compensation from
a bank, credit union, other financial services provider, or vendor in exchange for the applicant
offering to program participants the products or services of that bank, credit union, other
financial services provider, or vendor.
new text end
new text begin
(b) No applicant may receive funding from a bank, credit union, other financial services
provider, or vendor that is contingent on the applicant offering products or services of that
bank, credit union, other financial services provider, or vendor to program participants.
new text end
new text begin
(c) An applicant may receive funding from a bank, credit union, other financial services
provider, or vendor that is not in exchange for or contingent upon the applicant offering
products or services of that bank, credit union, other financial services provider, or vendor
to program participants.
new text end
new text begin Subd. 5. new text end
new text begin Permitted use of grant funds. new text end
new text begin
(a) A grant recipient may use grant funds to
dedicate a staff or volunteer position to coordinate financial capability services at a VITA
or TCE site and to offer VITA or TCE program participants free assistance with the initiation
through completion of:
new text end
new text begin
(1) opening a savings and a transactional account that meet the Federal Deposit Insurance
Corporation's model safe accounts template standards;
new text end
new text begin
(2) depositing all or part of a tax refund into a savings or transactional account; and
new text end
new text begin
(3) purchasing a Series I United States Savings Bond with all or part of a tax refund.
new text end
new text begin
(b) A grant recipient who offers all of the financial capability services enumerated in
paragraph (a) may also use grant funds to provide one or more additional financial capability
services to VITA or TCE program participants at no cost to the participant.
new text end
Sec. 4.
Minnesota Statutes 2016, section 271.08, subdivision 1, is amended to read:
Subdivision 1.
Written order.
The Tax Court, except in Small Claims Division, shall
determine every appeal by written order containing findings of fact and the decision of the
tax court. A memorandum of the grounds of the decision shall be appended. Notice of the
entry of the order and of the substance of the decision shall be mailed to all parties. A motion
for rehearing, which includes a motion for amended findings of fact, conclusions of law,
or a new trial, must be served by the moving party within deleted text begin 15deleted text end new text begin 30new text end days after mailing of the
notice by the court as specified in this subdivision, and the motion must be heard within deleted text begin 30deleted text end new text begin
60new text end days thereafter, unless the time for hearing is extended by the court within the deleted text begin 30-daydeleted text end new text begin
60-daynew text end period for good cause shown.
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 2016, section 271.21, subdivision 2, is amended to read:
Subd. 2.
Jurisdiction.
At the election of the taxpayer, the Small Claims Division shall
have jurisdiction only in the following matters:
(a) cases involving valuation, assessment, or taxation of real or personal property, if:
(i) the issue is a denial of a current year application for the homestead classification for
the taxpayer's property;
(ii) only one parcel is included in the petition, the entire parcel is classified as homestead
class 1a or 1b under section 273.13, and the parcel contains no more than one dwelling unit;
(iii) the entire property is classified as agricultural homestead class 2a or 1b under section
273.13; or
(iv) the assessor's estimated market value of the property included in the petition is less
than $300,000; or
(b) any case not involving valuation, assessment, or taxation of real and personal property
in which the amount in controversy does not exceed deleted text begin $5,000deleted text end new text begin $15,000new text end , including penalty and
interest.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for cases filed after March 31, 2017.
new text end
Sec. 6.
new text begin
[289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES.
new text end
new text begin
(a) For the purposes of sections 289A.60, subdivision 32; 289A.63, subdivision 12; and
609.5316, subdivision 3, the following terms have the meanings given.
new text end
new text begin
(b) "Automated sales suppression device" or "zapper" means a software program, carried
on any tangible medium, or accessed through any other means, that falsifies the electronic
records of electronic cash registers and other point-of-sale systems including, but not limited
to, transaction data and transaction reports.
new text end
new text begin
(c) "Electronic cash register" means a device that keeps a register or supporting documents
through the means of an electronic device or computer system designed to record transaction
data for the purpose of computing, compiling, or processing retail sales transaction data in
whatever manner.
new text end
new text begin
(d) "Phantom-ware" means a hidden preinstalled, or later-installed programming option
embedded in the operating system of an electronic cash register or hardwired into the
electronic cash register that can be used to create a virtual second electronic cash register
or may eliminate or manipulate transaction records that may or may not be preserved in
digital formats to represent the true or manipulated record of transactions in the electronic
cash register.
new text end
new text begin
(e) "Transaction data" includes items purchased by a customer; the price of each item;
the taxability determination for each item; a segregated tax amount for each of the taxed
items; the date and time of the purchase; the name, address, and identification number of
the vendor; and the receipt or invoice number of the transaction.
new text end
new text begin
(f) "Transaction report" means a report that includes but is not limited to the sales, taxes
collected, media totals, and discount voids at an electronic cash register that is printed on
cash register tape at the end of a day or shift, or a report documenting every action at an
electronic cash register that is stored electronically.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for activities enumerated in Minnesota
Statutes, 289A.60, subdivision 32, or section 289A.63, subdivision 12, that occur after
December 31, 2016.
new text end
Sec. 7.
Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to
read:
new text begin Subd. 32. new text end
new text begin Sales suppression. new text end
new text begin
(a) A person who:
new text end
new text begin
(1) sells;
new text end
new text begin
(2) transfers;
new text end
new text begin
(3) develops;
new text end
new text begin
(4) manufactures; or
new text end
new text begin
(5) possesses with the intent to sell or transfer an automated sales suppression device,
zapper, phantom-ware, or similar device capable of being used to commit tax fraud or
suppress sales is liable for a civil penalty calculated under paragraph (b).
new text end
new text begin
(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total
amount of all taxes and penalties due that are attributable to the use of any automated sales
suppression device, zapper, phantom-ware, or similar device facilitated by the sale, transfer,
development, or manufacture of the automated sales suppression device, zapper,
phantom-ware, or similar device by the person.
new text end
new text begin
(c) The definitions in section 289A.14 apply to this subdivision.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for activities enumerated that occur after
December 31, 2016.
new text end
Sec. 8.
Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to
read:
new text begin Subd. 12. new text end
new text begin Felony. new text end
new text begin
(a) A person who knowingly:
new text end
new text begin
(1) sells;
new text end
new text begin
(2) purchases;
new text end
new text begin
(3) installs;
new text end
new text begin
(4) transfers;
new text end
new text begin
(5) possesses;
new text end
new text begin
(6) develops;
new text end
new text begin
(7) manufactures;
new text end
new text begin
(8) accesses; or
new text end
new text begin
(9) uses an automated sales suppression device, zapper, phantom-ware, or similar device
knowing that the device or phantom-ware is capable of being used to commit tax fraud or
suppress sales is guilty of a felony and may be sentenced to imprisonment for not more than
five years or to a payment of a fine of not more than $10,000, or both.
new text end
new text begin
(b) An automated sales suppression device, zapper, phantom-ware, and any other device
containing an automated sales suppression, zapper, or phantom-ware device or software is
contraband and subject to forfeiture under section 609.5316.
new text end
new text begin
(c) The definitions in section 289A.14 apply to this subdivision.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for activities enumerated that occur after
December 31, 2016.
new text end
Sec. 9.
Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read:
Subd. 13.
Property taxes payable.
"Property taxes payable" means the property tax
exclusive of special assessments, penalties, and interest payable on a claimant's homestead
after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
and any other state paid property tax credits in any calendar year, and after any refund
claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the
year that the property tax is payable. In the case of a claimant who makes ground lease
payments, "property taxes payable" includes the amount of the payments directly attributable
to the property taxes assessed against the parcel on which the house is located. No
apportionment or reduction of the "property taxes payable" shall be required for the use of
a portion of the claimant's homestead for a business purpose if the claimant does not deduct
any business depreciation expenses for the use of a portion of the homesteadnew text begin , or does not
deduct expenses under section 280A of the Internal Revenue Code for a business operated
in the home,new text end in the determination of federal adjusted gross income. For homesteads which
are manufactured homes as defined in section 273.125, subdivision 8, and for homesteads
which are park trailers taxed as manufactured homes under section 168.012, subdivision 9,
"property taxes payable" shall also include 17 percent of the gross rent paid in the preceding
year for the site on which the homestead is located. When a homestead is owned by two or
more persons as joint tenants or tenants in common, such tenants shall determine between
them which tenant may claim the property taxes payable on the homestead. If they are
unable to agree, the matter shall be referred to the commissioner of revenue whose decision
shall be final. Property taxes are considered payable in the year prescribed by law for
payment of the taxes.
In the case of a claim relating to "property taxes payable," the claimant must have owned
and occupied the homestead on January 2 of the year in which the tax is payable and (i) the
property must have been classified as homestead property pursuant to section 273.124, on
or before December 15 of the assessment year to which the "property taxes payable" relate;
or (ii) the claimant must provide documentation from the local assessor that application for
homestead classification has been made on or before December 15 of the year in which the
"property taxes payable" were payable and that the assessor has approved the application.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refunds based on rent paid after
December 31, 2015, and property taxes payable after December 31, 2016.
new text end
Sec. 10.
Minnesota Statutes 2016, section 469.169, is amended by adding a subdivision
to read:
new text begin Subd. 20. new text end
new text begin Additional allocation; 2016. new text end
new text begin
In addition to the tax reductions in subdivisions
12 to 19, $3,000,000 is allocated for tax reductions to border city enterprise zones in cities
located on the western border of the state. The commissioner shall allocate this amount
among cities on a per capita basis. Allocations under this subdivision may be used for tax
reductions under sections 469.171, 469.1732, and 469.1734, or for other offsets of taxes
imposed on or remitted by businesses located in the enterprise zone, but only if the
municipality determines that the granting of the tax reduction or offset is necessary to retain
a business within or attract a business to the zone.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from July 1, 2016.
new text end
Sec. 11.
Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read:
Subd. 3.
Weapons, telephone cloning paraphernalia, new text begin automated sales suppression
devices, new text end and bullet-resistant vests.
Weapons used are contraband and must be summarily
forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for
a controlled substance crime; for any offense of this chapter or chapter 624, or for a violation
of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as
defined in section 609.486, worn or possessed during the commission or attempted
commission of a crime are contraband and must be summarily forfeited to the appropriate
agency upon conviction of the owner or possessor for a controlled substance crime or for
any offense of this chapter. Telephone cloning paraphernalia used in a violation of section
609.894new text begin , and automated sales suppression devices, phantom-ware, and other devices
containing an automated sales suppression or phantom-ware device or software used in
violation of sections 289A.60, subdivision 32, or 289A.63, subdivision 12,new text end are contraband
and must be summarily forfeited to the appropriate agency upon a conviction.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for activities enumerated in section
289A.60, subdivision 32, or 289A.63, subdivision 12, that occur after December 31, 2016.
new text end
Sec. 12. new text begin EXTENSION OF TIME FOR APPROVAL OF SPECIAL LAW
PROVISIONS.
new text end
new text begin
For purposes of any special law authority provided by this act that requires approval by
the governing body of a local government unit under Minnesota Statutes, section 469.1782
or 645.021, the required time for approval and filing with the secretary of state under those
provisions is extended to April 1, 2017.
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. 13. new text begin APPROPRIATIONS.
new text end
new text begin Subdivision 1. new text end
new text begin New markets grant program. new text end
new text begin
$30,000,000 in fiscal year 2017 is
appropriated from the general fund to the commissioner of employment and economic
development for the new markets grant program under Minnesota Statutes, section 116J.952.
This appropriation is a onetime appropriation and is available until June 30, 2024. The
commissioner may award grants of up to $10,000,000 per fiscal year.
new text end
new text begin Subd. 2. new text end
new text begin Department of Revenue. new text end
new text begin
$5,000,000 in fiscal year 2018 is appropriated from
the general fund to the commissioner of revenue for administering this act. The funding
base for this appropriation in fiscal year 2019 and thereafter is $2,000,000.
new text end
new text begin Subd. 3. new text end
new text begin Tax time savings grant program. new text end
new text begin
(a) $400,000 is appropriated in fiscal year
2018 from the general fund to the commissioner of revenue to make grants under the tax
time savings grant program under Minnesota Statutes, section 270C.22. Of this amount, up
to five percent may be used for the administration of the tax time savings grant program.
new text end
new text begin
(b) The base funding for the grant program authorized under paragraph (a) is $400,000
each year.
new text end
new text begin Subd. 4. new text end
new text begin Taxpayer assistance grants. new text end
new text begin
(a) $400,000 is appropriated in fiscal year 2018
from the general fund to the commissioner of revenue for the provision of taxpayer assistance
grants under Minnesota Statutes, section 270C.21, in addition to the current base funding
for the program. Of the amount appropriated under this paragraph and the current base
funding for the provision of taxpayer assistance grants, up to five percent may be used for
the administration of the taxpayer assistance grants program.
new text end
new text begin
(b) Beginning in fiscal year 2018, the total base funding for the program under paragraph
(a) is $800,000 each year. This amount includes the base funding of $400,000 each year
established in Laws 2015, chapter 77, article 1, section 14, subdivision 2, paragraph (a).
new text end
new text begin Subd. 5. new text end
new text begin Local government grants. new text end
new text begin
(a) The following amounts are appropriated in fiscal
year 2017 only from the general fund to the commissioner of revenue for grants that shall
be paid by March 31, 2017, and allocated as follows:
new text end
new text begin
(1) $1,200,000 to the city of Madelia;
new text end
new text begin
(2) $465,000 to the city of Hibbing; and
new text end
new text begin
(3) $52,288 to Stearns County.
new text end
new text begin
(b) The following amounts are appropriated in fiscal year 2017 only from the general
fund to the commissioner of revenue for grants that shall be paid by June 30, 2017, and
allocated as follows:
new text end
new text begin
(1) $3,000,000 to Mahnomen County. Of this amount, $1,000,000 must be paid from
the county to the White Earth Band of Ojibwe and $1,000,000 must be used for the
Mahnomen Health Center;
new text end
new text begin
(2) $1,130,000 to Hennepin County. Of this amount, $730,000 must be used for the
North Branch Library EMERGE Career and Technology Center, and $400,000 must be
used for the Cedar Riverside Opportunity Center; and
new text end
new text begin
(3) $150,000 to the city of Lilydale.
new text end
new text begin
(c) All of the appropriations under this subdivision are onetime and are not added to the
base budget.
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. 14. new text begin APPROPRIATION CANCELLATION.
new text end
new text begin
All unspent funds, estimated to be $7,100,000, for a grant or forgivable loan to Hoyt
Lakes pursuant to Laws 2014, chapter 312, article 2, section 2, subdivision 6, are canceled
to the Minnesota minerals 21st century fund on June 1, 2017.
new text end
ARTICLE 12
DEPARTMENT POLICY AND TECHNICAL PROVISIONS; INCOME,
CORPORATE FRANCHISE, AND ESTATE TAXES
Section 1.
Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read:
Subd. 11.
Information included in income tax return.
(a) The return must state:
(1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address
of the taxpayer in the same name or names and same address as the taxpayer has used in
making the taxpayer's income tax return to the United States;
(2) the date or dates of birth of the taxpayer or taxpayers;
(3) the Social Security number of the taxpayer, or taxpayers, if a Social Security number
has been issued by the United States with respect to the taxpayers; and
(4) the amount of the taxable income of the taxpayer as it appears on the federal return
for the taxable year to which the Minnesota state return applies.
(b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy
of the federal income tax return that the taxpayer has filed or is about to file for the perioddeleted text begin ,
unless the taxpayer is eligible to telefile the federal return and does file the Minnesota return
by telefilingdeleted 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. 2.
Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read:
Subd. 16.
Tax refund or return preparers; electronic filing; paper filing fee imposed.
(a) A "tax refund or return preparer," as defined in section 289A.60, deleted text begin subdivision deleted text end deleted text begin 13deleted text end deleted text begin , paragraph
(f),deleted text end who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue
Code, and who reasonably expects to prepare more than ten Minnesota individual incomenew text begin ,
corporate franchise, S corporation, partnership, or fiduciary incomenew text end tax returns for the prior
deleted text begin calendardeleted text end year must file all Minnesota individual incomenew text begin , corporate franchise, S corporation,
partnership, or fiduciary incomenew text end tax returns prepared for that deleted text begin calendardeleted text end year by electronic
means.
(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return
that the taxpayer did not want the return filed by electronic means.
(c) For each return that is not filed electronically by a tax refund or return preparer under
this subdivision, including returns filed under paragraph (b), a paper filing fee of $5 is
imposed upon the preparer. The fee is collected from the preparer in the same manner as
income tax. The fee does not apply to returns that the commissioner requires to be filed in
paper form.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end
Sec. 3.
Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read:
Subd. 2.
Withholding statement.
(a) A person required to deduct and withhold from
an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or
who would have been required to deduct and withhold a tax under section 290.92, subdivision
2a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined
without regard to section 290.92, subdivision 19, if the employee or payee had claimed no
more than one withholding exemption, or who paid wages or made payments not subject
to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an
employee or person receiving royalty payments in excess of $600, or who has entered into
a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must
give every employee or person receiving royalty payments in respect to the remuneration
paid by the person to the employee or person receiving royalty payments during the calendar
year, on or before January 31 of the succeeding year, or, if employment is terminated before
the close of the calendar year, within 30 days after the date of receipt of a written request
from the employee if the 30-day period ends before January 31, a written statement showing
the following:
(1) name of the person;
(2) the name of the employee or payee and the employee's or payee's Social Security
account number;
(3) the total amount of wages as that term is defined in section 290.92, subdivision 1,
paragraph (1); the total amount of remuneration subject to withholding under section 290.92,
subdivision 20; the amount of sick pay as required under section 6051(f) of the Internal
Revenue Code; and the amount of royalties subject to withholding under section 290.923,
subdivision 2; and
(4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a
or 3, or 290.923, subdivision 2.
(b) The statement required to be furnished by paragraph (a) with respect to any
remuneration must be furnished at those times, must contain the information required, and
must be in the form the commissioner prescribes.
(c) The commissioner may prescribe rules providing for reasonable extensions of time,
not in excess of 30 days, to employers or payers required to give the statements to their
employees or payees under this subdivision.
(d) A duplicate of any statement made under this subdivision and in accordance with
rules prescribed by the commissionerdeleted text begin , along with a reconciliation in the form the
commissioner prescribes of the statements for the calendar year, including a reconciliation
of the quarterly returns required to be filed under subdivision 1,deleted text end must be filed with the
commissioner on or before deleted text begin February 28deleted text end new text begin January 31new text end of the year after the payments were
made.
(e) If an employer cancels the employer's Minnesota withholding account number required
by section 290.92, subdivision 24, the information required by paragraph (d), must be filed
with the commissioner within 30 days of the end of the quarter in which the employer
cancels its account number.
(f) The employer must submit the statements required to be sent to the commissioner deleted text begin in
the same manner required to satisfy the federal reporting requirements of section 6011(e)
of the Internal Revenue Code and the regulations issued under it. An employer must submit
statements to the commissioner required by this section by electronic means if the employer
is required to send more than 25 statements to the commissioner, even though the employer
is not required to submit the returns federally by electronic means. For statements issued
for wages paid in 2011 and after, the threshold is ten. All statements issued for withholding
required under section 290.92 are aggregated for purposes of determining whether the
electronic submission threshold is metdeleted text end .new text begin The commissioner shall prescribe the content, format,
and manner of the statement pursuant to section 270C.30.
new text end
(g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph
(a), clause (2), must submit the returns required by this subdivision and subdivision 1,
paragraph (a), with the commissioner by electronic means.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for statements required to be sent to the
commissioner after December 31, 2017, except that the date change in paragraph (d) is
effective for wages paid after December 31, 2016.
new text end
Sec. 4.
Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read:
Subd. 14.
deleted text begin Regulated investment companies;deleted text end Reporting new text begin exempt interest and
new text end exempt-interest dividends.
(a) A regulated investment company paying $10 or more in
exempt-interest dividends to an individual who is a resident of Minnesotanew text begin , or any person
receiving $10 or more of exempt interest or exempt-interest dividends and paying as nominee
to an individual who is a resident of Minnesota,new text end must make a return indicating the amount
of the new text begin exempt interest or new text end exempt-interest dividends, the name, address, and Social Security
number of the recipient, and any other information that the commissioner specifies. The
return must be provided to the deleted text begin shareholderdeleted text end new text begin recipientnew text end by February 15 of the year following
the year of the payment. The return provided to the deleted text begin shareholderdeleted text end new text begin recipientnew text end must include a
clear statement, in the form prescribed by the commissioner, that the new text begin exempt interest or
new text end exempt-interest dividends must be included in the computation of Minnesota taxable income.
By June 1 of each year, the deleted text begin regulated investment companydeleted text end new text begin payornew text end must file a copy of the
return with the commissioner.
(b) For purposes of this subdivision, the following definitions apply.
(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section
852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest
dividends that are not required to be added to federal taxable income under section 290.0131,
subdivision 2, paragraph (b).
(2) "Regulated investment company" means regulated investment company as defined
in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company
as defined in section 851(g) of the Internal Revenue Code.
new text begin
(3) "Exempt interest" means income on obligations of any state other than Minnesota,
or a political or governmental subdivision, municipality, or governmental agency or
instrumentality of any state other than Minnesota, and exempt from federal income taxes
under the Internal Revenue Code or any other federal statute.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for reports required to be filed after
December 31, 2017.
new text end
Sec. 5.
Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to
read:
new text begin Subd. 2a. new text end
new text begin Annual withholding returns; eligible employers. new text end
new text begin
(a) An employer who
deducts and withholds an amount required to be withheld by section 290.92 may file an
annual return and make an annual payment of the amount required to be deducted and
withheld for that calendar year if the employer has received a notification under paragraph
(b). The ability to elect to file an annual return continues through the year following the
year where an employer is required to deduct and withhold more than $500.
new text end
new text begin
(b) The commissioner is authorized to determine which employers are eligible to file
an annual return and to notify employers who newly qualify to file an annual return because
the amount an employer is required to deduct and withhold for that calendar year is $500
or less based on the most recent period of four consecutive quarters for which the
commissioner has compiled data on that employer's withholding tax for that period. At the
time of notification, eligible employers may still decide to file returns and make deposits
quarterly. An employer who decides to file returns and make deposits quarterly is required
to make all returns and deposits required by this chapter and, notwithstanding paragraph
(a), is subject to all applicable penalties for failing to do so.
new text end
new text begin
(c) If, at the end of any calendar month other than the last month of the calendar year,
the aggregate amount of undeposited tax withheld by an employer who has elected to file
an annual return exceeds $500, the employer must deposit the aggregate amount with the
commissioner within 30 days of the end of the calendar month.
new text end
new text begin
(d) If an employer who has elected to file an annual return ceases to pay wages for which
withholding is required, the employer must file a final return and deposit any undeposited
tax within 30 days of the end of the calendar month following the month in which the
employer ceased paying wages.
new text end
new text begin
(e) An employer not subject to paragraph (c) or (d) who elects to file an annual return
must file the return and pay the tax not previously deposited before February 1 of the year
following the year in which the tax was withheld.
new text end
new text begin
(f) A notification to an employer regarding eligibility to file an annual return under
Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).
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, 2016.
new text end
Sec. 6.
Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read:
Subd. 2.
Withholding from wages, entertainer withholding, withholding from
payments to out-of-state contractors, and withholding by partnerships, small business
corporations, trusts.
(a) new text begin Except as provided in section 289A.18, subdivision 2a, new text end a tax
required to be deducted and withheld during the quarterly period must be paid on or before
the last day of the month following the close of the quarterly period, unless an earlier time
for payment is provided. A tax required to be deducted and withheld from compensation
of an entertainer and from a payment to an out-of-state contractor must be paid on or before
the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes
required to be deducted and withheld by partnerships, S corporations, and trusts must be
paid on a quarterly basis as estimated taxes under section 289A.25 for partnerships and
trusts and under section 289A.26 for S corporations.
(b) An employer who, during the previous quarter, withheld more than $1,500 of tax
under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax
withheld under those sections with the commissioner within the time allowed to deposit the
employer's federal withheld employment taxes under Code of Federal Regulations, title 26,
section 31.6302-1, as amended through December 31, 2001, without regard to the safe
harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). Taxpayers
must submit a copy of their federal notice of deposit status to the commissioner upon request
by the commissioner.
(c) The commissioner may prescribe by rule other return periods or deposit requirements.
In prescribing the reporting period, the commissioner may classify payors according to the
amount of their tax liability and may adopt an appropriate reporting period for the class that
the commissioner judges to be consistent with efficient tax collection. In no event will the
duration of the reporting period be more than one year.
(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments
with respect to both the tax and the amount to be deducted must be made, without interest,
in the manner and at the times the commissioner prescribes. If the underpayment cannot be
adjusted, the amount of the underpayment will be assessed and collected in the manner and
at the times the commissioner prescribes.
(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year ending
June 30, the employer must remit each required deposit for wages paid in all subsequent
calendar years by electronic means.
(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a),
clause (2), who remits withholding deposits must remit all deposits by electronic means as
provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal
year for all of the employers.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end
Sec. 7.
Minnesota Statutes 2016, 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 deleted text begin taxdeleted text end new text begin taxesnew text end imposed under deleted text begin sectiondeleted text end new text begin sections 289A.35 andnew text end 290.0922 on partnerships
deleted text begin isdeleted text end new text begin arenew text end 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 the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2016, section 289A.35, is amended to read:
289A.35 ASSESSMENTS ON RETURNS.
(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable
income, items of federal tax preferences, or federal credit amounts to make them conform
with the provisions of chapter 290 or section 298.01. If a return has been filed, the
commissioner shall enter the liability reported on the return and may make any audit or
investigation that is considered necessary.
new text begin
(b) Upon petition by a taxpayer, and when the commissioner determines that it is in the
best interest of the state, the commissioner may allow S corporations and partnerships to
receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their
owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must
be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).
new text end
new text begin
(c) A taxpayer may petition the commissioner for the use of the method described in
paragraph (b) after the taxpayer is notified that an audit has been initiated and before an
order of assessment has been issued.
new text end
new text begin
(d) A determination of the commissioner under paragraph (b) to grant or deny the petition
of a taxpayer cannot be appealed to the Tax Court or any other court.
new text end
deleted text begin (b)deleted text end new text begin (e)new text end The commissioner may audit and adjust the taxpayer's computation of tax under
chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner
shall notify the estate no later than nine months after the filing date, as provided by section
289A.38, subdivision 2, whether the return is under examination or the return has been
processed as filed.
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 2016, section 289A.60, subdivision 28, is amended to read:
Subd. 28.
Preparer identification number.
Any Minnesota deleted text begin individualdeleted text end income tax return
or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
13, paragraph (f), shall bear the identification number the preparer is required to use federally
under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer who
prepares a Minnesota deleted text begin individual income taxdeleted text end returnnew text begin required by section 289A.08, subdivisions
1, 2, 3, and 7; or 289A.12, subdivision 3,new text end or claim for refund and fails to include the required
number on the return or claim is subject to a penalty of $50 for each failure.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end
Sec. 10.
Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Long-term care insurance" means a policy that:
(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding
the deleted text begin 7.5 percentdeleted text end new text begin adjusted grossnew text end income test; or meets the requirements given in section 62A.46;
or provides similar coverage issued under the laws of another jurisdiction; and
(2) has a lifetime long-term care benefit limit of not less than $100,000; and
(3) has been offered in compliance with the inflation protection requirements of section
62S.23.
(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
(d) "Premiums deducted in determining federal taxable income" means the lesser of (1)
long-term care insurance premiums that qualify as deductions under section 213 of the
Internal Revenue Code; and (2) the total amount deductible for medical care under section
213 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2012.
new text end
Sec. 11.
Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:
Subd. 2.
Definitions.
For purposes of this section, the following terms have the meanings
given.
(a) "Qualified research expenses" means (i) qualified research expenses and basic research
payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does
not include expenses incurred for qualified research or basic research conducted outside
the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and
(ii) contributions to a nonprofit corporation established and operated pursuant to the
provisions of chapter 317A for the purpose of promoting the establishment and expansion
of business in this state, provided the contributions are invested by the nonprofit corporation
for the purpose of providing funds for small, technologically innovative enterprises in
Minnesota during the early stages of their development.
(b) "Qualified research" means qualified research as defined in section 41(d) of the
Internal Revenue Code, except that the term does not include qualified research conducted
outside the state of Minnesota.
(c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue
Code, except that the average annual gross receipts new text begin and aggregate gross receipts new text end must be
calculated using Minnesota sales or receipts under section 290.191 and the definitions
contained in deleted text begin clausesdeleted text end new text begin paragraphsnew text end (a) and (b) shall apply.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read:
Subd. 2.
Income not derived from conduct of a trade or business.
The income of a
taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
business must be assigned in accordance with paragraphs (a) to (f):
(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section
3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the extent
that, the work of the employee is performed within it; all other income from such sources
is treated as income from sources without this state.
Severance pay shall be considered income from labor or personal or professional services.
(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete
or entertainer, income from compensation for labor or personal services performed within
this state shall be determined in the following manner:
(i) The amount of income to be assigned to Minnesota for an individual who is a
nonresident salaried athletic team employee shall be determined by using a fraction in which
the denominator contains the total number of days in which the individual is under a duty
to perform for the employer, and the numerator is the total number of those days spent in
Minnesota. For purposes of this paragraph, off-season training activities, unless conducted
at the team's facilities as part of a team imposed program, are not included in the total number
of duty days. Bonuses earned as a result of play during the regular season or for participation
in championship, play-off, or all-star games must be allocated under the formula. Signing
bonuses are not subject to allocation under the formula if they are not conditional on playing
any games for the team, are payable separately from any other compensation, and are
nonrefundable; and
(ii) The amount of income to be assigned to Minnesota for an individual who is a
nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's
athletic or entertainment performance in Minnesota shall be determined by assigning to this
state all income from performances or athletic contests in this state.
(3) For purposes of this section, amounts received by a nonresident as "retirement income"
as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public
Law 104-95, are not considered income derived from carrying on a trade or business or
from wages or other compensation for work an employee performed in Minnesota, and are
not taxable under this chapter.
(b) Income or gains from tangible property located in this state that is not employed in
the business of the recipient of the income or gains must be assigned to this state.
(c) Income or gains from intangible personal property not employed in the business of
the recipient of the income or gains must be assigned to this state if the recipient of the
income or gains is a resident of this state or is a resident trust or estate.
Gain on the sale of a partnership interest is allocable to this state in the ratio of the
original cost of partnership tangible property in this state to the original cost of partnership
tangible property everywhere, determined at the time of the sale. If more than 50 percent
of the value of the partnership's assets consists of intangibles, gain or loss from the sale of
the partnership interest is allocated to this state in accordance with the sales factor of the
partnership for its first full tax period immediately preceding the tax period of the partnership
during which the partnership interest was sold.
Gain on the sale of an interest in a single member limited liability company that is
disregarded for federal income tax purposes is allocable to this state as if the single member
limited liability company did not exist and the assets of the limited liability company are
personally owned by the sole member.
Gain on the sale of goodwill or income from a covenant not to compete that is connected
with a business operating all or partially in Minnesota is allocated to this state to the extent
that the income from the business in the year preceding the year of sale was deleted text begin assignabledeleted text end new text begin
allocablenew text end to Minnesota under subdivision 3.
When an employer pays an employee for a covenant not to compete, the income allocated
to this state is in the ratio of the employee's service in Minnesota in the calendar year
preceding leaving the employment of the employer over the total services performed by the
employee for the employer in that year.
(d) Income from winnings on a bet made by an individual while in Minnesota is assigned
to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision
2, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).
(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
(f) For the purposes of this section, working as an employee shall not be considered to
be conducting a trade or business.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13.
Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read:
Subdivision 1.
Partners, not partnership, subject to tax.
new text begin Except as provided under
section 289A.35, paragraph (b), 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 the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2016, section 290A.19, is amended to read:
290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
new text begin (a) new text end 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.
new text begin
(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, in the content, format, and
manner prescribed by the commissioner pursuant to section 270C.30. 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.
new text end
new text begin (c)new text end 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, 2016.
new text end
Sec. 15.
Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read:
Subd. 2.
Additions.
The following amounts, to the extent deducted in computingnew text begin or
otherwise excluded fromnew text end the federal taxable estate, must be added in computing the
Minnesota taxable estate:
(1) the amount of the deduction for state death taxes allowed under section 2058 of the
Internal Revenue Code;
(2) the amount of the deduction for foreign death taxes allowed under section 2053(d)
of the Internal Revenue Code; and
(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal
Revenue Code, made by the decedent within three years of the date of death. For purposes
of this clause, the amount of the addition equals the value of the gift under section 2512 of
the Internal Revenue Code and excludes any value of the gift included in the federal estate.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after June 30, 2013.
new text end
Sec. 16.
Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:
Subd. 3.
Subtraction.
new text begin
The following amounts, to the extent included in computing the
federal taxable estate, may be subtracted in computing the Minnesota taxable estate but
must not reduce the Minnesota taxable estate to less than zero:
new text end
new text begin
(1) the value of property subject to an election under section 291.03, subdivision 1d;
and
new text end
new text begin (2) new text end the value of qualified small business property under section 291.03, subdivision 9,
and the value of qualified farm property under section 291.03, subdivision 10, or the result
of $5,000,000 minus the amount for the year of death listed in deleted text begin clauses (1) to (5) deleted text end new text begin items (i)
to (v)new text end , whichever is lessdeleted text begin , may be subtracted in computing the Minnesota taxable estate but
must not reduce the Minnesota taxable estate to less than zerodeleted text end :
deleted text begin (1)deleted text end new text begin (i)new text end $1,200,000 for estates of decedents dying in 2014;
deleted text begin (2)deleted text end new text begin (ii)new text end $1,400,000 for estates of decedents dying in 2015;
deleted text begin (3)deleted text end new text begin (iii)new text end $1,600,000 for estates of decedents dying in 2016;
deleted text begin (4)deleted text end new text begin (iv)new text end $1,800,000 for estates of decedents dying in 2017; and
deleted text begin (5)deleted text end new text begin (v)new text end $2,000,000 for estates of decedents dying in 2018 and thereafter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end
Sec. 17.
Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read:
Subd. 9.
Qualified small business property.
Property satisfying all of the following
requirements is qualified small business property:
(1) The value of the property was included in the federal adjusted taxable estate.
(2) The property consists of the assets of a trade or business or shares of stock or other
ownership interests in a corporation or other entity engaged in a trade or business. Shares
of stock in a corporation or an ownership interest in another type of entity do not qualify
under this subdivision if the shares or ownership interests are traded on a public stock
exchange at any time during the three-year period ending on the decedent's date of death.
For purposes of this subdivision, an ownership interest includes the interest the decedent is
deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
(3) During the taxable year that ended before the decedent's death, the trade or business
must not have been a passive activity within the meaning of section 469(c) of the Internal
Revenue Code, and the decedent or the decedent's spouse must have materially participated
in the trade or business within the meaning of section 469(h) of the Internal Revenue Code,
excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided
by United States Treasury Department regulation that substitutes material participation in
prior taxable years for material participation in the taxable year that ended before the
decedent's death.
(4) The gross annual sales of the trade or business were $10,000,000 or less for the last
taxable year that ended before the date of the death of the decedent.
(5) The property does not deleted text begin consist ofdeleted text end new text begin include:
new text end
new text begin (i)new text end cashdeleted text begin ,deleted text end new text begin ;
new text end
new text begin (ii)new text end cash equivalentsdeleted text begin ,deleted text end new text begin ;
new text end
new text begin (iii)new text end publicly traded securitiesdeleted text begin ,deleted text end new text begin ;new text end or
new text begin (iv) anynew text end assets not used in the operation of the trade or business.
new text begin (6)new text end For property consisting of shares of stock or other ownership interests in an entity,
the value of deleted text begin cash, cash equivalents, publicly traded securities, or assets not used in the
operation of the trade or business held by the corporation or other entitydeleted text end new text begin items described in
clause (5)new text end must be deleted text begin deducted from the value of the property qualifying under this subdivision
in proportion to the decedent's share of ownership of the entity on the date of deathdeleted text end new text begin excluded
in the valuation of the decedent's interest in the entitynew text end .
deleted text begin (6)deleted text end new text begin (7)new text end The decedent continuously owned the property, including property the decedent
is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for
the three-year period ending on the date of death of the decedent. In the case of a sole
proprietor, if the property replaced similar property within the three-year period, the
replacement property will be treated as having been owned for the three-year period ending
on the date of death of the decedent.
deleted text begin (7)deleted text end new text begin (8)new text end For three years following the date of death of the decedent, the trade or business
is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code,
and a family member materially participates in the operation of the trade or business within
the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
of the Internal Revenue Code and any other provision provided by United States Treasury
Department regulation that substitutes material participation in prior taxable years for
material participation in the three years following the date of death of the decedent.
deleted text begin (8)deleted text end new text begin (9)new text end The estate and the qualified heir elect to treat the property as qualified small
business property and agree, in the form prescribed by the commissioner, to pay the recapture
tax under subdivision 11, if applicable.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end
Sec. 18.
Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:
Subd. 11.
Recapture tax.
(a) If, within three years after the decedent's death and before
the death of the qualified heir, the qualified heir disposes of any interest in the qualified
property, other than by a disposition to a family member, or a family member ceases to
satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate
tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces
qualified small business property excluded under subdivision 9 with similar property, then
the qualified heir will not be treated as having disposed of an interest in the qualified property.
(b) The amount of the additional tax equals the amount of the exclusion claimed by the
estate under subdivision 8, paragraph (d), multiplied by 16 percent.
(c) The additional tax under this subdivision is due on the day which is six months after
the date of the disposition or cessation in paragraph (a).
new text begin
(d) This subdivision shall not apply as a result of any of the following:
new text end
new text begin
(1) a portion of qualified farm property consisting of less than one-fifth of the acreage
of the property is reclassified as class 2b property under section 273.13, subdivision 23, and
the qualified heir has not substantially altered the reclassified property during the three-year
holding period;
new text end
new text begin
(2) a portion of qualified farm property classified as 2a property at the death of the
decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a residence,
garage, and immediately surrounding one acre of land is reclassified as 4bb property during
the three-year holding period, and the qualified heir has not substantially altered the property;
or
new text end
new text begin
(3) acquisition of title or possession of the qualified property by a federal, state, or local
government unit, or any other entity with the power of eminent domain for a public purpose,
as defined in section 117.025, subdivision 11, within the three-year holding period.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end
Sec. 19. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Rules, part 8092.1400,
new text end
new text begin
is repealed.
new text end
new text begin
(b)
new text end
new text begin
Minnesota Rules, part 8092.2000,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
Paragraph (a) is effective for taxable years beginning after
December 31, 2016, except that notifications from the Department of Revenue to employers
regarding eligibility to file an annual return for taxes withheld in calendar year 2016 remain
in force. Paragraph (b) is effective the day following final enactment.
new text end
ARTICLE 13
DEPARTMENT POLICY AND TECHNICAL PROVISIONS; SPECIAL TAXES
AND SALES TAXES
Section 1.
Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read:
Subd. 5.
Calculation of state aid.
(a) The amount of fire state aid available for
apportionment, before the addition of the minimum fire state aid allocation amount under
subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon
the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the
commissioner by insurers on the Minnesota Firetown Premium Report. This amount must
be reduced by the amount required to pay the state auditor's costs and expenses of the audits
or exams of the firefighters relief associations.
The total amount for apportionment in respect to fire state aid must not be less than two
percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown
Premium Report after subtracting the following amounts:
(1) the amount required to pay the state auditor's costs and expenses of the audits or
exams of the firefighters relief associations; and
(2) one percent of the premiums reported by deleted text begin town and farmers'deleted text end new text begin townshipnew text end mutual insurance
companies and mutual property and casualty companies with total assets of $5,000,000 or
less.
(b) The total amount 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 insurers on the Minnesota Aid to Police Premium Report. The total amount for
apportionment in respect to the police state aid program must not be less than two percent
of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid
to Police Premium Report.
(c) The commissioner shall 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.
(d) In addition to the amount for apportionment of police state aid under paragraph (b),
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.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read:
Subd. 6.
Omission in excess of 25 percent.
Additional taxes may be assessed within
6-1/2 years after the due date of the return or the date the return was filed, whichever is
later, if:
(1) the taxpayer omits from gross income an amount properly includable in it that is in
excess of 25 percent of the amount of gross income stated in the return;
(2) the taxpayer omits from a sales, use, or withholding tax returnnew text begin , or a return for a tax
imposed under section 295.52,new text end an amount of taxes in excess of 25 percent of the taxes
reported in the return; or
(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross
estate reported in the return.
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 2016, section 290.0922, subdivision 2, is amended to read:
Subd. 2.
Exemptions.
The following entities are exempt from the tax imposed by this
section:
(1) corporations exempt from tax under section 290.05;
(2) real estate investment trusts;
(3) regulated investment companies or a fund thereof; and
(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue
Code;
(5) deleted text begin town and farmers'deleted text end new text begin townshipnew text end mutual insurance companies;
(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively
to persons age 55 and over and are classified as homesteads under section 273.124,
subdivision 3; and
(7) a qualified business as defined under section 469.310, subdivision 11, if for the
taxable year all of its property is located in a job opportunity building zone designated under
section 469.314 and all of its payroll is a job opportunity building zone payroll under section
469.310.
Entities not specifically exempted by this subdivision are subject to tax under this section,
notwithstanding section 290.05.
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 2016, section 295.54, subdivision 2, is amended to read:
Subd. 2.
Pharmacy refund.
A pharmacy may claim an annual refund against the total
amount of tax, if any, the pharmacy owes during that calendar year under section 295.52,
subdivision 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug
distributor subject to tax under section 295.52, subdivision 3, for legend drugs delivered by
the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section
295.52, subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy
under section 295.52, subdivision 4, the commissioner shall provide the pharmacy with a
refund equal to the excess amount. Each qualifying pharmacy must apply for the refund on
the annual return as deleted text begin provided under section 295.55, subdivision 5deleted text end new text begin prescribed by the
commissioner, on or before March 15 of the year following the calendar year the legend
drugs were delivered outside Minnesotanew text end . The refund deleted text begin must be claimed within 18 months
from the date the drugs were delivered outside of Minnesotadeleted text end new text begin shall not be allowed if the
initial claim for refund is filed more than one year after the original due date of the returnnew text end .
Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a
claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due
date of the return if a return is due or the date of the actual claim for refund, whichever is
later.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for qualifying legend drugs delivered
outside Minnesota after December 31, 2015.
new text end
Sec. 5.
Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to
read:
new text begin Subd. 9a. new text end
new text begin Bulk storage or bulk storage facility. new text end
new text begin
"Bulk storage" or "bulk storage facility"
means a single property, or contiguous or adjacent properties used for a common purpose
and owned or operated by the same person, on or in which are located one or more stationary
tanks that are used singularly or in combination for the storage or containment of more than
1,100 gallons of petroleum.
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 2016, section 296A.01, subdivision 33, is amended to read:
Subd. 33.
Motor fuel.
"Motor fuel" means a liquidnew text begin or gaseous form of fuelnew text end , regardless
of its composition or properties, used to propel a motor vehicle.
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 2016, section 296A.01, subdivision 42, is amended to read:
Subd. 42.
Petroleum products.
"Petroleum products" means all of the products defined
in subdivisions 2, 7, 8, 8a,new text begin 8b,new text end 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.
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 2016, section 296A.07, subdivision 1, is amended to read:
Subdivision 1.
Tax imposed.
There is imposed an excise tax on gasoline, gasoline
blended with ethanol, and agricultural alcohol gasoline used in producing and generating
power for propelling motor vehicles used on the public highways of this state. The tax is
imposed on the first licensed distributor who received the product in Minnesota. For purposes
of this section, gasoline is defined in section 296A.01, subdivisions new text begin 8b, new text end 10, 18, 20, 23, 24,
25, 32, and 34. The tax is payable at the time and in the form and manner prescribed by the
commissioner. The tax is payable at the rates specified in subdivision 3, subject to the
exceptions and reductions specified in section 296A.17.
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 2016, section 297A.61, subdivision 10, is amended to read:
Subd. 10.
Tangible personal property.
(a) "Tangible personal property" means personal
property that can be seen, weighed, measured, felt, or touched, or that is in any other manner
perceptible to the senses. "Tangible personal property" includes, but is not limited to,
electricity, water, gas, steam, and prewritten computer software.
(b) Tangible personal property does not include:
deleted text begin
(1) large ponderous machinery and equipment used in a business or production activity
which at common law would be considered to be real property;
deleted text end
deleted text begin (2)deleted text end new text begin (1)new text end property which is subject to an ad valorem property tax;
deleted text begin (3)deleted text end new text begin (2)new text end property described in section 272.02, subdivision 9, clauses (a) to (d);
deleted text begin (4)deleted text end new text begin (3)new text end property described in section 272.03, subdivision 2, clauses (3) and (5); and
deleted text begin (5)deleted text end new text begin (4)new text end specified digital products, or other digital products, transferred electronically.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read:
Subd. 4.
Exemptions.
(a) The following transactions are exempt from the tax imposed
in this chapter to the extent provided.
(b) The purchase or use of aircraft previously registered in Minnesota by a corporation
or partnership is exempt if the transfer constitutes a transfer within the meaning of section
351 or 721 of the Internal Revenue Code.
(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of
an aircraft for which a commercial use permit has been issued pursuant to section 360.654
is exempt, if the aircraft is resold while the permit is in effect.
(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline
companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this
subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and
maintenance of such air flight equipment, and flight simulators, but does not include deleted text begin airplanesdeleted text end new text begin
aircraftnew text end with a deleted text begin grossdeleted text end new text begin maximum takeoffnew text end weight of less than 30,000 pounds deleted text begin that are used on
intermittent or irregularly timed flightsdeleted text end .
(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in
section 360.511 and approved by the Federal Aviation Administration, and which the seller
delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or
transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not
a resident of Minnesota and provided that the aircraft is not thereafter returned to a point
within Minnesota, except in the course of interstate commerce or isolated and occasional
use, and will be registered in another state or country upon its removal from Minnesota.
This exemption applies even if the purchaser takes possession of the aircraft in Minnesota
and uses the aircraft in the state exclusively for training purposes for a period not to exceed
ten days prior to removing the aircraft from this state.
(f) The sale or purchase of the following items that relate to aircraft operated under
Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
equipment and parts necessary for repair and maintenance of aircraft; and equipment and
parts to upgrade and improve aircraft.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
December 31, 2017.
new text end
Sec. 11.
Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read:
Subd. 4a.
Deposit in state airports fund.
Tax revenuenew text begin , including interest and penalties,new text end
collected from the sale or purchase of an aircraft taxable under this chapter must be deposited
in the state airports fund established in section 360.017.new text begin For purposes of this subdivision,
"revenue" does not include the revenue, including interest and penalties, generated by the
sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as
provided under article XI, section 15, of the Minnesota Constitution.
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. 12.
Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read:
Subd. 7.
Untaxed gambling product.
(a) In addition to penalties or criminal sanctions
imposed by this chapter, a person, organization, or business entity possessing or selling a
pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed by
this chapter has not been paid is liable for a tax of six percent of the ideal gross of each
pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial deal must
be assessed as if it were a full deal.
(b) In addition to penalties and criminal sanctions imposed by this chapter, a person new text begin (1)
new text end not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles,
or paddlewheel gamesnew text begin , or (2) who conducts gambling prohibited under sections 609.75 to
609.763, other than activities subject to tax under section 297E.03,new text end is liable for a tax of six
percent of the gross receipts from that activity.
(c) The tax deleted text begin mustdeleted text end new text begin maynew text end be assessed by the commissioner. An assessment must be considered
a jeopardy assessment or jeopardy collection as provided in section 270C.36. The
commissioner shall assess the tax based on personal knowledge or information available to
the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last known
address, or serve in person, a written notice of the amount of tax, demand its immediate
payment, and, if payment is not immediately made, collect the tax by any method described
in chapter 270C, except that the commissioner need not await the expiration of the times
specified in chapter 270C. The tax assessed by the commissioner is presumed to be valid
and correctly determined and assessed. The burden is upon the taxpayer to show its
incorrectness or invalidity. The tax imposed under this subdivision does not apply to gambling
that is exempt from taxation under subdivision 2.
new text begin
(d) A person, organization, or business entity conducting gambling activity under this
subdivision must file monthly tax returns with the commissioner, in the form required by
the commissioner. The returns must be filed on or before the 20th day of the month following
the month in which the gambling activity occurred. The tax imposed by this section is due
and payable at the time when the returns are required to be filed.
new text end
new text begin
(e) Notwithstanding any law to the contrary, neither the commissioner nor a public
employee may reveal facts contained in a tax return filed with the commissioner of revenue
as required by this subdivision, nor can any information contained in the report or return
be used against the tax obligor in any criminal proceeding, unless independently obtained,
except in connection with a proceeding involving taxes due under this section, or as provided
in section 270C.055, subdivision 1. However, this paragraph does not prohibit the
commissioner from publishing statistics that do not disclose the identity of tax obligors or
the contents of particular returns or reports. Any person violating this paragraph is guilty
of a gross misdemeanor.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for games played or purchased after June
30, 2017.
new text end
Sec. 13.
Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read:
Subd. 2.
Materials.
The tax is not imposed upon charges to generators of mixed municipal
solid waste or upon the volume of nonmixed municipal solid waste for waste management
services to manage the following materials:
(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside
of Minnesota;
(2) recyclable materials that are separated for recycling by the generator, collected
separately from other waste, and recycled, to the extent the price of the service for handling
recyclable material is separately itemizednew text begin on a bill to the generatornew text end ;
(3) recyclable nonmixed municipal solid waste that is separated for recycling by the
generator, collected separately from other waste, delivered to a waste facility for the purpose
of recycling, and recycled;
(4) industrial waste, when it is transported to a facility owned and operated by the same
person that generated it;
(5) mixed municipal solid waste from a recycling facility that separates or processes
recyclable materials and reduces the volume of the waste by at least 85 percent, provided
that the exempted waste is managed separately from other waste;
(6) recyclable materials that are separated from mixed municipal solid waste by the
generator, collected and delivered to a waste facility that recycles at least 85 percent of its
waste, and are collected with mixed municipal solid waste that is segregated in leakproof
bags, provided that the mixed municipal solid waste does not exceed five percent of the
total weight of the materials delivered to the facility and is ultimately delivered to a waste
facility identified as a preferred waste management facility in county solid waste plans
under section 115A.46;
(7) source-separated compostable deleted text begin wastedeleted text end new text begin materialsnew text end , if the deleted text begin waste isdeleted text end new text begin materials are new text end delivered
to a facility exempted as described in this clause. To initially qualify for an exemption, a
facility must apply for an exemption in its application for a new or amended solid waste
permit to the Pollution Control Agency. The first time a facility applies to the agency it
must certify in its application that it will comply with the criteria in items (i) to (v) and the
commissioner of the agency shall so certify to the commissioner of revenue who must grant
the exemption. The facility must annually apply to the agency for certification to renew its
exemption for the following year. The application must be filed according to the procedures
of, and contain the information required by, the agency. The commissioner of revenue shall
grant the exemption if the commissioner of the Pollution Control Agency finds and certifies
to the commissioner of revenue that based on an evaluation of the composition of incoming
waste and residuals and the quality and use of the product:
(i) generators separate materials at the source;
(ii) the separation is performed in a manner appropriate to the technology specific to the
facility that:
(A) maximizes the quality of the product;
(B) minimizes the toxicity and quantity of deleted text begin residualsdeleted text end new text begin rejectsnew text end ; and
(C) provides an opportunity for significant improvement in the environmental efficiency
of the operation;
(iii) the operator of the facility educates generators, in coordination with each county
using the facility, about separating the waste to maximize the quality of the waste stream
for technology specific to the facility;
(iv) process deleted text begin residualsdeleted text end new text begin rejectsnew text end do not exceed 15 percent of the weight of the total material
delivered to the facility; and
(v) the final product is accepted for use;
(8) waste and waste by-products for which the tax has been paid; and
(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution
Control Agency.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read:
Subd. 2.
deleted text begin Town and farmers'deleted text end new text begin Townshipnew text end mutual insurance.
A tax is imposed on deleted text begin town
and farmers'deleted text end new text begin townshipnew text end mutual insurance companies. The rate of tax is equal to one percent
of gross premiums less return premiums on all direct business received by the insurer or
agents of the insurer in Minnesota, in cash or otherwise, during the year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 15.
Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:
Subdivision 1.
Cities of the first class.
(a) The commissioner shall order and direct a
surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
premiums, less return premiums, on all direct business received by any licensed foreign or
domestic fire insurance company on property in a city of the first class, or by its agents for
it, in cash or otherwise.
(b) By July 31 and December 31 of each year, the commissioner deleted text begin of management and
budgetdeleted text end shall pay to each city of the first class a warrant for an amount equal to the total
amount of the surcharge on the premiums collected within that city since the previous
payment.
(c) The treasurer of the city shall place the money received under this subdivision in a
special account or fund to defray all or a portion of the employer contribution requirement
of public employees police and fire plan coverage for city firefighters.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 16.
Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read:
Subd. 3.
Appropriation.
The amount necessary to make the payments required under
this section is appropriated to the commissioner deleted text begin of management and budgetdeleted text end from the general
fund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 17.
Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read:
Subd. 4c.
Special deductions; net operating loss.
deleted text begin (a)deleted text end For purposes of determining
taxable income under subdivision 4, the provisions of sections 290.0133, subdivisions 7
and 9, and 290.0134, subdivisions 7 and 9, are not used to determine taxable income.
deleted text begin
(b) The amount of net operating loss incurred in a taxable year beginning before January
1, 1990, that may be carried over to a taxable year beginning after December 31, 1989, is
the amount of net operating loss carryover determined in the calculation of the hypothetical
corporate franchise tax under Minnesota Statutes 1988, sections 298.40 and 298.402.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 14
DEPARTMENT OF REVENUE TECHNICAL AND POLICY; PROPERTY TAX
PROVISIONS
Section 1.
Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read:
Subd. 2.
Income property assessment data.
The following data collected by political
subdivisions new text begin and the state new text end from individuals or business entities concerning income properties
are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12:
(a) detailed income and expense figures;
(b) average vacancy factors;
(c) verified net rentable areas or net usable areas, whichever is appropriate;
(d) anticipated income and expenses;
(e) projected vacancy factors; and
(f) lease information.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read:
Subd. 2.
Air commerce.
deleted text begin (a)deleted text end "Air commerce" means the transportation by aircraft of
persons or property for hire in interstate, intrastate, or international transportation on regularly
scheduled flights or on intermittent or irregularly timed flights by airline companiesnew text begin and
includes transportation by any airline company making three or more flights in or out of
Minnesota, or within Minnesota, during a calendar yearnew text end .
deleted text begin
(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed
flight, a flight arranged at the convenience of an airline and the person contracting for the
transportation, or a charter flight. It includes any airline company making three or more
flights in or out of Minnesota during a calendar year.
deleted text end
deleted text begin
(c) "Air commerce" does not include casual transportation for hire by aircraft commonly
owned and used for private air flight purposes if the person furnishing the transportation
does not hold out to be engaged regularly in transportation for hire.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2018 and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read:
Subd. 7.
Flight property.
"Flight property" means all aircraft and flight equipment used
in connection therewith, including spare flight equipment. Flight property also includes
computers and computer software used in operating, controlling, or regulating aircraft and
flight equipment.new text begin Flight property does not include aircraft with a maximum takeoff weight
of less than 30,000 pounds.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2018 and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read:
Subd. 8.
Person.
"Person" means deleted text begin anydeleted text end new text begin annew text end individual, deleted text begin corporation, firm, copartnership,
company, or association, and includes any guardian, trustee, executor, administrator, receiver,
conservator, or any person acting in any fiduciary capacity therefor deleted text end new text begin trust, estate, fiduciary,
partnership, company, corporation, limited liability company, association, governmental
unit or agency, public or private organization of any kind, or other legal entitynew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2018 and thereafter.
new text end
Sec. 5.
Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to
read:
new text begin Subd. 10. new text end
new text begin Intermittent or irregularly timed flights. new text end
new text begin
"Intermittently or irregularly timed
flights" means any flight in which the departure time, departure location, and arrival location
are specifically negotiated with the customer or the customer's representative, including but
not limited to charter flights.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2018 and thereafter.
new text end
Sec. 6.
Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read:
Subd. 2.
Assessment of flight property.
Flight property that is owned by, or is leased,
loaned, or otherwise made available to an airline company operating in Minnesota shall be
assessed and appraised annually by the commissioner with reference to its value on January
2 of the assessment year in the manner prescribed by sections 270.071 to 270.079. deleted text begin Aircraft
with a gross weight of less than 30,000 pounds and used on intermittent or irregularly timed
flights shall be excluded from the provisions of sections 270.071 to 270.079.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2018 and thereafter.
new text end
Sec. 7.
Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read:
Subd. 3.
Report by airline company.
new text begin (a) new text end Each year, on or before July 1, every airline
company engaged in air commerce in this state shall file with the commissioner a report
under oath setting forth specifically the information prescribed by the commissioner to
enable the commissioner to make the assessment required in sections 270.071 to 270.079,
unless the commissioner determines that the airline company deleted text begin or person should be excluded
fromdeleted text end new text begin is exempt fromnew text end filing deleted text begin because its activities do not constitute air commerce as defined
hereindeleted text end .
new text begin
(b) The commissioner shall prescribe the content, format, and manner of the report
pursuant to section 270C.30, except that a "law administered by the commissioner" includes
the property tax laws. If a report is made by electronic means, the taxpayer's signature is
defined pursuant to section 270C.304, except that a "law administered by the commissioner"
includes the property tax laws.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
The amendment to paragraph (a) is effective for reports filed in
2018 and thereafter. The amendment adding paragraph (b) is effective the day following
final enactment.
new text end
Sec. 8.
Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to
read:
new text begin Subd. 3a. new text end
new text begin Commissioner filed reports. new text end
new text begin
If an airline company fails to file a report required
by subdivision 3, the commissioner may, from information in the commissioner's possession
or obtainable by the commissioner, make and file a report for the airline company, or may
issue a notice of net tax capacity and tax under section 270.075, subdivision 2.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2018 and thereafter.
new text end
Sec. 9.
Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to
read:
new text begin Subd. 6. new text end
new text begin Reassessment orders. new text end
new text begin
If the State Board of Equalization determines that a
considerable amount of property has been undervalued or overvalued compared to like
property such that the assessment is grossly unfair or inequitable, the State Board of
Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders
to the county assessor to reassess all or any part of a parcel in a county.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2018 and thereafter.
new text end
Sec. 10.
Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read:
Subdivision 1.
Initial report.
Each county assessor shall file by April 1 with the
commissioner a copy of the abstract that will be acted upon by the local and county boards
of review. The abstract must list the real and personal property in the county itemized by
assessment districts. The assessor of each county in the state shall file with the commissioner,
within ten working days following final action of the local board of review or equalization
and within five days following final action of the county board of equalization, any changes
made by the local or county board. The information must be filed in the manner prescribed
by the commissioner. deleted text begin It must be accompanied by a printed or typewritten copy of the
proceedings of the appropriate board.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for county boards of appeal and
equalization meetings held in 2018 and thereafter.
new text end
Sec. 11.
Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read:
Subd. 9.
Personal property; exceptions.
Except for the taxable personal property
enumerated below, all personal property and the property described in section 272.03,
subdivision 1, paragraphs (c) and (d), shall be exempt.
The following personal property shall be taxable:
(a) personal property which is part of new text begin (1) new text end an electric generating, transmission, or
distribution system deleted text begin ordeleted text end new text begin ; (2)new text end a pipeline system transporting or distributing deleted text begin water, gas, crude
oil, or petroleumdeleted text end productsnew text begin ;new text end or new text begin (3) new text end mains and pipes used in the distribution of steam or hot
or chilled water for heating or cooling buildings and structures;
(b) railroad docks and wharves which are part of the operating property of a railroad
company as defined in section 270.80;
(c) personal property defined in section 272.03, subdivision 2, clause (3);
(d) leasehold or other personal property interests which are taxed pursuant to section
272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law
providing the property is taxable as if the lessee or user were the fee owner;
(e) manufactured homes and sectional structures, including storage sheds, decks, and
similar removable improvements constructed on the site of a manufactured home, sectional
structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph
(f); and
(f) flight property as defined in section 270.071.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) For the purposes of this section, the term:
(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 deleted text begin calendar yeardeleted text end new text begin 12-month periodnew text end 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.
(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 for reports filed in 2018 and thereafter.
new text end
Sec. 13.
Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision
to read:
new text begin Subd. 8. new text end
new text begin Extension. new text end
new text begin
The commissioner may, for good cause, extend the time for filing
the report required by subdivision 4. The extension must not exceed 15 days.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for reports filed in 2018 and thereafter.
new text end
Sec. 14.
Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read:
Subd. 7.
Division of duties between local and county assessor.
The duty of the duly
appointed local assessor shall be to view and appraise the value of all property as provided
by law, but all the book work shall be done by the county assessor, or the assessor's assistants,
and the value of all property subject to assessment and taxation shall be determined by the
county assessor, except as otherwise hereinafter provided. If directed by the county assessor,
the local assessor deleted text begin shalldeleted text end new text begin mustnew text end perform the duties enumerated in subdivision 8, clause (16)new text begin ,
and must enter construction and valuation data into the records in the manner prescribed
by the county assessornew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2018 and thereafter.
new text end
Sec. 15.
Minnesota Statutes 2016, section 273.08, is amended to read:
273.08 ASSESSOR'S DUTIES.
The assessor shall actually view, and determine the market value of each tract or lot of
real property listed for taxation, including the value of all improvements and structures
thereon, at maximum intervals of five years and shall enter the value opposite each
description.new text begin When directed by the county assessor, local assessors must enter construction
and valuation data into the records in the manner prescribed by the county assessor.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2018 and thereafter.
new text end
Sec. 16.
Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision
to read:
new text begin Subd. 3. new text end
new text begin Compliance. new text end
new text begin
A county assessor, or a city assessor having the powers of a
county assessor, who does not comply with the timely notice requirement under subdivision
1 must:
new text end
new text begin
(1) mail an additional valuation notice to each person who was not provided timely
notice; and
new text end
new text begin
(2) convene a supplemental local board of appeal and equalization or local review session
no sooner than ten days after sending the additional notices required by clause (1).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for valuation notices sent in 2018 and
thereafter.
new text end
Sec. 17.
Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:
Subd. 22.
Class 1.
(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.
The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.
(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:
(1) any person who is blind as defined in section 256D.35, or the blind person and the
blind person's spouse;
(2) any person who is permanently and totally disabled or by the disabled person and
the disabled person's spouse; or
(3) the surviving spouse of a permanently and totally disabled veteran homesteading a
property classified under this paragraph for taxes payable in 2008.
Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.
Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.
Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of .45 percent of its market value. The remaining market
value of class 1b property deleted text begin has a classification rate using the rates fordeleted text end new text begin is classified asnew text end class
1a or class 2a property, whichever is appropriatedeleted text begin , of similar market valuedeleted text end .
(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, and is devoted to temporary and
seasonal residential occupancy for recreational purposes but not devoted to commercial
purposes for more than 250 days in the year preceding the year of assessment, and that
includes a portion used as a homestead by the owner, which includes a dwelling occupied
as a homestead by a shareholder of a corporation that owns the resort, a partner in a
partnership that owns the resort, or a member of a limited liability company that owns the
resort even if the title to the homestead is held by the corporation, partnership, or limited
liability company. For purposes of this paragraph, property is devoted to a commercial
purpose on a specific day if any portion of the property, excluding the portion used
exclusively as a homestead, is used for residential occupancy and a fee is charged for
residential occupancy. Class 1c property must contain three or more rental units. A "rental
unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping
site equipped with water and electrical hookups for recreational vehicles. Class 1c property
must provide recreational activities such as the rental of ice fishing houses, boats and motors,
snowmobiles, downhill or cross-country ski equipment; provide marina services, launch
services, or guide services; or sell bait and fishing tackle. Any unit in which the right to use
the property is transferred to an individual or entity by deeded interest, or the sale of shares
or stock, no longer qualifies for class 1c even though it may remain available for rent. A
camping pad offered for rent by a property that otherwise qualifies for class 1c is also class
1c, regardless of the term of the rental agreement, as long as the use of the camping pad
does not exceed 250 days. If the same owner owns two separate parcels that are located in
the same township, and one of those properties is classified as a class 1c property and the
other would be eligible to be classified as a class 1c property if it was used as the homestead
of the owner, both properties will be assessed as a single class 1c property; for purposes of
this sentence, properties are deemed to be owned by the same owner if each of them is
owned by a limited liability company, and both limited liability companies have the same
membership. The portion of the property used as a homestead is class 1a property under
paragraph (a). The remainder of the property is classified as follows: the first $600,000 of
market value is tier I, the next $1,700,000 of market value is tier II, and any remaining
market value is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II,
1.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to
temporary and seasonal residential occupancy for recreation purposes in which all or a
portion of the property was devoted to commercial purposes for not more than 250 days in
the year preceding the year of assessment desiring classification as class 1c, must submit a
declaration to the assessor designating the cabins or units occupied for 250 days or less in
the year preceding the year of assessment by January 15 of the assessment year. Those
cabins or units and a proportionate share of the land on which they are located must be
designated as class 1c as otherwise provided. The remainder of the cabins or units and a
proportionate share of the land on which they are located must be designated as class 3a
commercial. The owner of property desiring designation as class 1c property must provide
guest registers or other records demonstrating that the units for which class 1c designation
is sought were not occupied for more than 250 days in the year preceding the assessment
if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop,
(4) conference center or meeting room, and (5) other nonresidential facility operated on a
commercial basis not directly related to temporary and seasonal residential occupancy for
recreation purposes does not qualify for class 1c.
(d) Class 1d property includes structures that meet all of the following criteria:
(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;
(2) the structure is occupied exclusively by seasonal farm workers during the time when
they work on that farm, and the occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of farm equipment and produce
does not disqualify the property from classification under this paragraph;
(3) the structure meets all applicable health and safety requirements for the appropriate
season; and
(4) the structure is not salable as residential property because it does not comply with
local ordinances relating to location in relation to streets or roads.
The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18.
Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read:
Subdivision 1.
Listing and assessment in county.
The personal property of express,
stage and transportation companies, and of pipeline companies engaged in the business of
transporting deleted text begin natural gas, gasoline, crude oil, or other petroleumdeleted text end productsnew text begin ,new text end except as otherwise
provided by law, shall be listed and assessed in the county, town or district where the same
is usually kept.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19.
Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read:
Subd. 2.
Listing and assessment by commissioner.
The personal property, consisting
of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline companies
and others engaged in the operations or business of transporting deleted text begin natural gas, gasoline, crude
oil, or other petroleumdeleted text end products by pipelines, shall be listed with and assessed by the
commissioner of revenue and the values provided to the city or county assessor by order.
This subdivision shall not apply to the assessment of the products transported through the
pipelines nor to the lines of local commercial gas companies engaged primarily in the
business of distributing deleted text begin gasdeleted text end new text begin productsnew text end to consumers at retail nor to pipelines used by the
owner thereof to supply deleted text begin natural gas or other petroleum deleted text end products exclusively for such owner's
own consumption and not for resale to others. If more than 85 percent of the deleted text begin natural gas or
other petroleumdeleted text end products actually transported over the pipeline is used for the owner's own
consumption and not for resale to others, then this subdivision shall not apply; provided,
however, that in that event, the pipeline shall be assessed in proportion to the percentage
of deleted text begin gasdeleted text end new text begin productsnew text end actually transported over such pipeline that is not used for the owner's own
consumption. On or before August 1, the commissioner shall certify to the auditor of each
county, the amount of such personal property assessment against each company in each
district in which such property is located. If the commissioner determines that the amount
of personal property assessment certified on or before August 1 is in error, the commissioner
may issue a corrected certification on or before October 1. The commissioner may correct
errors that are merely clerical in nature until December 31.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 20.
Minnesota Statutes 2016, section 273.372, subdivision 1, is amended to read:
Subdivision 1.
Scope.
(a) As provided in this section, an appeal by a utility or railroad
company concerning property for which the commissioner of revenue has provided the city
or county assessor with valuations by order, or for which the commissioner has recommended
values to the city or county assessor, must be brought against the commissionerdeleted text begin ,deleted text end and deleted text begin not
againstdeleted text end the county or taxing district where the property is located. new text begin Service must be made
on the commissioner only, and not on the county or taxing district.
new text end
(b) This section governs administrative appeals and appeals to court of a claim that utility
or railroad operating property has been partially, unfairly, or unequally assessed, or assessed
at a valuation greater than its real or actual value, misclassified, or that the property is
exempt. This section applies only to property described in sections 270.81, subdivision 1,
273.33, 273.35, 273.36, and 273.37, and only with regard to taxable net tax capacities that
have been provided to the city or county by the commissioner and which have not been
changed by city or county. If the taxable net tax capacity being appealed is not the taxable
net tax capacity established by the commissioner, or if the appeal claims that the tax rate
applied against the parcel is incorrect, or that the tax has been paid, this section does not
apply.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for appeals of valuations made in
assessment year 2018 and thereafter.
new text end
Sec. 21.
Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read:
Subd. 2.
Contents and filing of petition.
(a) In all appeals to court that are required to
be brought against the commissioner under this section, the petition initiating the appeal
must be served on the commissioner and must be filed with the Tax Court in Ramsey County,
as provided in paragraph (b) or (c).
(b) If the appeal to court is from an order of the commissioner, it must be brought under
chapter 271new text begin and filed within the time period prescribed in section 271.06, subdivision 2new text end ,
except that when the provisions of this section conflict with chapter 271new text begin or 278new text end , this section
prevails. In addition, the petition must include all the parcels encompassed by that order
which the petitioner claims have been partially, unfairly, or unequally assessed, assessed
at a valuation greater than their real or actual value, misclassified, or are exempt. For this
purpose, an order of the commissioner is either (1) a certification or notice of value by the
commissioner for property described in subdivision 1, or (2) the final determination by the
commissioner of either an administrative appeal conference or informal administrative
appeal described in subdivision 4.
(c) If the appeal is from the tax that results from implementation of the commissioner's
order, certification, or recommendation, it must be brought under chapter 278, and the
provisions in that chapter apply, except that service shall be on the commissioner only and
not on the local officials specified in section 278.01, subdivision 1, and if any other provision
of this section conflicts with chapter 278, this section prevails. In addition, the petition must
include either all the utility parcels or all the railroad parcels in the state in which the
petitioner claims an interest and which the petitioner claims have been partially, unfairly,
or unequally assessed, assessed at a valuation greater than their real or actual value,
misclassified, or are exempt.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2018 and thereafter.
new text end
Sec. 22.
Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read:
Subd. 4.
Administrative appeals.
(a) Companies that submit the reports under section
270.82 or 273.371 by the date specified in that section, or by the date specified by the
commissioner in an extension, may appeal administratively to the commissioner prior to
bringing an action in court.
(b) Companies deleted text begin thatdeleted text end must deleted text begin submit reports under section 270.82 must submitdeleted text end new text begin filenew text end a written
request deleted text begin todeleted text end new text begin for an appeal withnew text end the commissioner deleted text begin for a conferencedeleted text end within deleted text begin tendeleted text end new text begin 30 new text end days after
the new text begin notice new text end date of the commissioner's valuation certification or new text begin other new text end notice to the companydeleted text begin ,
or by June 15, whichever is earlierdeleted text end .new text begin For purposes of this section, the term "notice date"
means the date of the valuation certification, commissioner's order, recommendation, or
other notice.
new text end
(c) deleted text begin Companies that submit reports under section 273.371 must submit a written request
to the commissioner for a conference within ten days after the date of the commissioner's
valuation certification or notice to the company, or by July 1, whichever is earlier.deleted text end new text begin The
appeal need not be in any particular form but must contain the following information:
new text end
new text begin
(1) name and address of the company;
new text end
new text begin
(2) the date;
new text end
new text begin
(3) its Minnesota identification number;
new text end
new text begin
(4) the assessment year or period involved;
new text end
new text begin
(5) the findings in the valuation that the company disputes;
new text end
new text begin
(6) a summary statement specifying its reasons for disputing each item; and
new text end
new text begin
(7) the signature of the company's duly authorized agent or representative.
new text end
new text begin
(d) When requested in writing and within the time allowed for filing an administrative
appeal, the commissioner may extend the time for filing an appeal for a period of not more
than 15 days from the expiration of the time for filing the appeal.
new text end
deleted text begin (d)deleted text end new text begin (e)new text end The commissioner shall conduct the conference new text begin either in person or by telephone
new text end upon the commissioner's entire files and records and such further information as may be
offered. The conference must be held no later than 20 days after the date of the
deleted text begin commissioner's valuation certification or notice to the company, or by the date specified by
the commissioner in an extensiondeleted text end new text begin request for an appealnew text end . Within deleted text begin 60deleted text end new text begin 30new text end days after the
conference the commissioner shall make a final determination of the matter and shall notify
the company promptly of the determination. The conference is not a contested case hearingnew text begin
subject to chapter 14new text end .
deleted text begin
(e) In addition to the opportunity for a conference under paragraph (a), the commissioner
shall also provide the railroad and utility companies the opportunity to discuss any questions
or concerns relating to the values established by the commissioner through certification or
notice in a less formal manner. This does not change or modify the deadline for requesting
a conference under paragraph (a), the deadline in section 271.06 for appealing an order of
the commissioner, or the deadline in section 278.01 for appealing property taxes in court.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2018 and thereafter.
new text end
Sec. 23.
Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision
to read:
new text begin Subd. 5. new text end
new text begin Agreement determining valuation. new text end
new text begin
When it appears to be in the best interest
of the state, the commissioner may settle any matter under consideration regarding an appeal
filed under this section. The agreement must be in writing and signed by the commissioner
and the company or the company's authorized representative. The agreement is final and
conclusive, and except upon a showing of fraud, malfeasance, or misrepresentation of a
material fact, the case may not be reopened as to the matters agreed upon.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2018 and thereafter.
new text end
Sec. 24.
Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Dismissal of administrative appeal. new text end
new text begin
If a taxpayer files an administrative appeal
from an order of the commissioner and also files an appeal to the tax court for that same
order of the commissioner, the administrative appeal is dismissed and the commissioner is
no longer required to make the determination of appeal under subdivision 4.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2017.
new text end
Sec. 25.
new text begin
[273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.
new text end
new text begin
After making the apportionment provided in Minnesota Rules, part 8100.0600, the
commissioner must equalize the values of the operating structures to the level accepted by
the State Board of Equalization if the appropriate sales ratio for each county, as conducted
by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is
outside the range accepted by the State Board of Equalization. The commissioner must not
equalize the value of the operating structures if the sales ratio determined pursuant to this
subdivision is within the range accepted by the State Board of Equalization.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2017.
new text end
Sec. 26.
Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read:
Subdivision 1.
Ordinary board; meetings, deadlines, grievances.
(a) The town board
of a town, or the council or other governing body of a city, is the new text begin local new text end board of appeal and
equalization except (1) in cities whose charters provide for a board of equalization or (2)
in any city or town that has transferred its local board of review power and duties to the
county board as provided in subdivision 3. The county assessor shall fix a day and time
when deleted text begin the board ordeleted text end the new text begin local new text end board of equalization shall meet in the assessment districts of
the county. Notwithstanding any law or city charter to the contrary, a city board of
equalization shall be referred to as a new text begin local new text end board of appeal and equalization. On or before
February 15 of each year the assessor shall give written notice of the time to the city or
town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must
be held between April 1 and May 31 each year. The clerk shall give published and posted
notice of the meeting at least ten days before the date of the meeting.
The board shall meet either at a central location within the county or at the office of the
clerk to review the assessment and classification of property in the town or city. No changes
in valuation or classification which are intended to correct errors in judgment by the county
assessor may be made by the county assessor after the board has adjourned in those cities
or towns that hold a local board of review; however, corrections of errors that are merely
clerical in nature or changes that extend homestead treatment to property are permitted after
adjournment until the tax extension date for that assessment year. The changes must be fully
documented and maintained in the assessor's office and must be available for review by any
person. A copy of the changes made during this period in those cities or towns that hold a
local board of review must be sent to the county board no later than December 31 of the
assessment year.
(b) The board shall determine whether the taxable property in the town or city has been
properly placed on the list and properly valued by the assessor. If real or personal property
has been omitted, the board shall place it on the list with its market value, and correct the
assessment so that each tract or lot of real property, and each article, parcel, or class of
personal property, is entered on the assessment list at its market value. No assessment of
the property of any person may be raised unless the person has been duly notified of the
intent of the board to do so. On application of any person feeling aggrieved, the board shall
review the assessment or classification, or both, and correct it as appears just. The board
may not make an individual market value adjustment or classification change that would
benefit the property if the owner or other person having control over the property has refused
the assessor access to inspect the property and the interior of any buildings or structures as
provided in section 273.20. A board member shall not participate in any actions of the board
which result in market value adjustments or classification changes to property owned by
the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild,
brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a
board member has a financial interest. The relationship may be by blood or marriage.
(c) A local board may reduce assessments upon petition of the taxpayer but the total
reductions must not reduce the aggregate assessment made by the county assessor by more
than one percent. If the total reductions would lower the aggregate assessments made by
the county assessor by more than one percent, none of the adjustments may be made. The
assessor shall correct any clerical errors or double assessments discovered by the board
without regard to the one percent limitation.
(d) A local board does not have authority to grant an exemption or to order property
removed from the tax rolls.
(e) A majority of the members may act at the meeting, and adjourn from day to day until
they finish hearing the cases presented. The assessor shall attend and take part in the
proceedings, but must not vote. The county assessor, or an assistant delegated by the county
assessor shall attend the meetings. The board shall list separately all omitted property added
to the list by the board and all items of property increased or decreased, with the market
value of each item of property, added or changed by the board. The county assessor shall
enter all changes made by the board.
(f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel,
or by written communication before the board after being duly notified of the board's intent
to raise the assessment of the property, or if a person feeling aggrieved by an assessment
or classification fails to apply for a review of the assessment or classification, the person
may not appear before the county board of appeal and equalization for a review. This
paragraph does not apply if an assessment was made after the local board meeting, as
provided in section 273.01, or if the person can establish not having received notice of
market value at least five days before the local board meeting.
(g) The local board must complete its work and adjourn within 20 days from the time
of convening stated in the notice of the clerk, unless a longer period is approved by the
commissioner of revenue. No action taken after that date is valid. All complaints about an
assessment or classification made after the meeting of the board must be heard and
determined by the county board of equalization. A nonresident may, at any time, before the
meeting of the board file written objections to an assessment or classification with the county
assessor. The objections must be presented to the board at its meeting by the county assessor
for its consideration.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 27.
Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read:
Subdivision 1.
Members; meetings; rules for equalizing assessments.
The county
commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be
present, the deputy county auditor, or, if there is no deputy, the court administrator of the
district court, shall form a board for the equalization of the assessment of the property of
the county, including the property of all cities whose charters provide for a board of
equalization. This board shall be referred to as the county board of appeal and equalization.
The board shall meet annually, on the date specified in section 274.14, at the office of the
auditor. Each member shall take an oath to fairly and impartially perform duties as a member.
Members shall not participate in any actions of the board which result in market value
adjustments or classification changes to property owned by the board member, the spouse,
parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt,
nephew, or niece of a board member, or property in which a board member has a financial
interest. The relationship may be by blood or marriage. The board shall examine and compare
the returns of the assessment of property of the towns or districts, and equalize them so that
each tract or lot of real property and each article or class of personal property is entered on
the assessment list at its market value, subject to the following rules:
(1) The board shall raise the valuation of each tract or lot of real property which in its
opinion is returned below its market value to the sum believed to be its market value. The
board must first give notice of intention to raise the valuation to the person in whose name
it is assessed, if the person is a resident of the county. The notice must fix a time and place
for a hearing.
(2) The board shall reduce the valuation of each tract or lot which in its opinion is returned
above its market value to the sum believed to be its market value.
(3) The board shall raise the valuation of each class of personal property which in its
opinion is returned below its market value to the sum believed to be its market value. It
shall raise the aggregate value of the personal property of individuals, firms, or corporations,
when it believes that the aggregate valuation, as returned, is less than the market value of
the taxable personal property possessed by the individuals, firms, or corporations, to the
sum it believes to be the market value. The board must first give notice to the persons of
intention to do so. The notice must set a time and place for a hearing.
(4) The board shall reduce the valuation of each class of personal property that is returned
above its market value to the sum it believes to be its market value. Upon complaint of a
party aggrieved, the board shall reduce the aggregate valuation of the individual's personal
property, or of any class of personal property for which the individual is assessed, which
in its opinion has been assessed at too large a sum, to the sum it believes was the market
value of the individual's personal property of that class.
(5) The board must not reduce the aggregate value of all the property of its county, as
submitted to the county board of equalization, with the additions made by the auditor under
this chapter, by more than one percent of its whole valuation. The board may raise the
aggregate valuation of real property, and of each class of personal property, of the county,
or of any town or district of the county, when it believes it is below the market value of the
property, or class of property, to the aggregate amount it believes to be its market value.
(6) The board shall change the classification of any property which in its opinion is not
properly classified.
(7) The board does not have the authority to grant an exemption or to order property
removed from the tax rolls.
new text begin
(8) The board may not make an individual market value adjustment or classification
change that would benefit property if the owner or other person having control over the
property has refused the assessor access to inspect the property and the interior of any
buildings or structures as provided in section 273.20.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for county board of appeal and
equalization meetings in 2018 and thereafter.
new text end
Sec. 28.
Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:
Subd. 3.
Proof of compliance; transfer of duties.
(a) Any county that conducts county
boards of appeal and equalization meetings must provide proof to the commissioner by
deleted text begin December 1, 2009, and each year thereafter,deleted text end new text begin February 1 new text end that it is in compliance with the
requirements of subdivision 2. deleted text begin Beginning in 2009,deleted text end This notice must also verify that there
was a quorum of voting members at each meeting of the board of appeal and equalization
in the deleted text begin currentdeleted text end new text begin previousnew text end year. A county that does not comply with these requirements is
deemed to have transferred its board of appeal and equalization powers to the special board
of equalization appointed pursuant to section 274.13, subdivision 2, beginning with the
following year's assessment and continuing unless the powers are reinstated under paragraph
(c). A county that does not comply with the requirements of subdivision 2 and has not
appointed a special board of equalization shall appoint a special board of equalization before
the following year's assessment.
(b) The county shall notify the taxpayers when the board of appeal and equalization for
a county has been transferred to the special board of equalization under this subdivision
and, prior to the meeting time of the special board of equalization, the county shall make
available to those taxpayers a procedure for a review of the assessments, including, but not
limited to, open book meetings. This alternate review process must take place in April and
May.
(c) A county board whose powers are transferred to the special board of equalization
under this subdivision may be reinstated by resolution of the county board and upon proof
of compliance with the requirements of subdivision 2. The resolution and proofs must be
provided to the commissioner by deleted text begin Decemberdeleted text end new text begin Februarynew text end 1 in order to be effective for the
deleted text begin followingdeleted text end new text begin currentnew text end year's assessment.
(d) If a person who was entitled to appeal to the county board of appeal and equalization
or to the county special board of equalization is not able to do so in a particular year because
the county board or special board did not meet the quorum and training requirements in this
section and section 274.13, or because the special board was not appointed, that person may
instead appeal to the commissioner of revenue, provided that the appeal is received by the
commissioner prior to August 1. The appeal is not subject to either chapter 14 or section
270C.92. The commissioner must issue an appropriate order to the county assessor in
response to each timely appeal, either upholding or changing the valuation or classification
of the property. Prior to October 1 of each year, the commissioner must charge and bill the
county where the property is located $500 for each tax parcel covered by an order issued
under this paragraph in that year. Amounts received by the commissioner under this paragraph
must be deposited in the state's general fund. If payment of a billed amount is not received
by the commissioner before December 1 of the year when billed, the commissioner must
deduct that unpaid amount from any state aid the commissioner would otherwise pay to the
county under chapter 477A in the next year. Late payments may either be returned to the
county uncashed and undeposited or may be accepted. If a late payment is accepted, the
state aid paid to the county under chapter 477A must be adjusted within 12 months to
eliminate any reduction that occurred because the payment was late. Amounts needed to
make these adjustments are included in the appropriation under section 477A.03, subdivision
2.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for county boards of appeal and
equalization meetings held in 2017 and thereafter.
new text end
Sec. 29.
Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:
Subdivision 1.
Proposed levy.
(a) Notwithstanding any law or charter to the contrary,
on or before September 30, each county and each home rule charter or statutory city shall
certify to the county auditor the proposed property tax levy for taxes payable in the following
year.
(b) Notwithstanding any law or charter to the contrary, on or before September 15, each
town and each special taxing district shall adopt and certify to the county auditor a proposed
property tax levy for taxes payable in the following year. For towns, the final certified levy
shall also be considered the proposed levy.
(c) On or before September 30, each school district that has not mutually agreed with
its home county to extend this date shall certify to the county auditor the proposed property
tax levy for taxes payable in the following year. Each school district that has agreed with
its home county to delay the certification of its proposed property tax levy must certify its
proposed property tax levy for the following year no later than October 7. The school district
shall certify the proposed levy as:
(1) a specific dollar amount by school district fund, broken down between voter-approved
and non-voter-approved levies and between referendum market value and tax capacity
levies; or
(2) the maximum levy limitation certified by the commissioner of education according
to section 126C.48, subdivision 1.
(d) If the board of estimate and taxation or any similar board that establishes maximum
tax levies for taxing jurisdictions within a first class city certifies the maximum property
tax levies for funds under its jurisdiction by charter to the county auditor by the date specified
in paragraph (a), the city shall be deemed to have certified its levies for those taxing
jurisdictions.
(e) For purposes of this section, "special taxing district" means a special taxing district
as defined in section 275.066. Intermediate school districts that levy a tax under chapter
124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and
Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
taxing districts for purposes of this section.
(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
tax levy under this subdivision, the taxing authority shall announce the time and place of
deleted text begin itsdeleted text end new text begin anynew text end subsequent regularly scheduled meetings at which the budget and levy will be
discussed and at which the public will be allowed to speak. The time and place of those
meetings must be included in the proceedings or summary of proceedings published in the
official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 30.
Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read:
Subd. 2.
Local governments required to report.
For purposes of this section, "local
governmental unit" means a county, home rule charter or statutory city with a population
greater than 2,500deleted text begin , a town with a population greater than 5,000, or a home rule charter or
statutory city or town that receives a distribution from the taconite municipal aid account
in the levy yeardeleted 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. 31.
Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read:
Subdivision 1.
Determination of validity.
(a) Any person having personal property, or
any estate, right, title, or interest in or lien upon any parcel of land, who claims that such
property has been partially, unfairly, or unequally assessed in comparison with other property
in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class,
the portion of the county excluding the first class city, or that the parcel has been assessed
at a valuation greater than its real or actual value, or that the tax levied against the same is
illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so
levied, may have the validity of the claim, defense, or objection determined by the district
court of the county in which the tax is levied or by the Tax Court by serving one copy of a
petition for such determination upon the county auditor, one copy on the county attorney,
one copy on the county treasurer, and three copies on the county assessor. The county
assessor shall immediately forward one copy of the petition to the appropriate governmental
authority in a home rule charter or statutory city or town in which the property is located if
that city or town employs its own certified assessor. A copy of the petition shall also be
forwarded by the assessor to the school board of the school district in which the property
is located.
(b) In counties where the office of county treasurer has been combined with the office
of county auditor, the county may elect to require the petitioner to serve the number of
copies as determined by the county. The county assessor shall immediately forward one
copy of the petition to the appropriate governmental authority in a home rule charter or
statutory city or town in which the property is located if that city or town employs its own
certified assessor. A list of petitioned properties, including the name of the petitioner, the
identification number of the property, and the estimated market value, shall be sent on or
before the first day of July by the county auditor/treasurer to the school board of the school
district in which the property is located.
(c) For all counties, the petitioner must file the copies with proof of service, in the office
of the court administrator of the district court on or before April 30 of the year in which the
tax becomes payable. A petition for determination under this section may be transferred by
the district court to the Tax Court. An appeal may also be taken to the Tax Court under
chapter 271 at any time following receipt of the valuation noticenew text begin that county assessors or
city assessors having the powers of a county assessor arenew text end required by section 273.121new text begin to
send to persons whose property is to be included on the assessment roll that year,new text end but prior
to May 1 of the year in which the taxes are payable.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 32.
Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read:
Subd. 1a.
Conveyance to public entities.
(a) Upon written request from a state agency
or a governmental subdivision of the state, a parcel of unsold tax-forfeited land must be
withheld from sale or lease to others for a maximum of six months. The request must be
submitted to the county auditor. Upon receipt, the county auditor must withhold the parcel
from sale or lease to any other party for six months, and must confirm the starting date of
the six-month withholding period to the requesting agency or subdivision. If the request is
from a governmental subdivision of the state, the governmental subdivision must pay the
maintenance costs incurred by the county during the period the parcel is withheld. The
county board may approve a sale or conveyance to the requesting party during the
withholding period. A conveyance of the property to the requesting party terminates the
withholding period.
A governmental subdivision of the state must not make, and a county auditor must not
act upon, a second request to withhold a parcel from sale or lease within 18 months of a
previous request for that parcel. A county may reject a request made under this paragraph
if the request is made more than 30 days after the county has given notice to the requesting
state agency or governmental subdivision of the state that the county intends to sell or
otherwise dispose of the property.
(b) Nonconservation tax-forfeited lands may be sold by the county board, for their market
value as determined by the county board, to an organized or incorporated governmental
subdivision of the state for any public purpose for which the subdivision is authorized to
acquire property. When the term "market value" is used in this section, it means an estimate
of the full and actual market value of the parcel as determined by the county board, but in
making this determination, the board and the persons employed by or under contract with
the board in order to perform, conduct, or assist in the determination, are exempt from the
licensure requirements of chapter 82B.
(c) Nonconservation tax-forfeited lands may be deleted text begin released from the trust in favor of the
taxing districts on application todeleted text end new text begin sold by new text end the county board deleted text begin bydeleted text end new text begin , for their market value as
determined by the county board, tonew text end a state agency for deleted text begin an authorized use at not less than their
market value as determined by the county boarddeleted text end new text begin any public purpose for which the agency
is authorized to acquire propertynew text end .
(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized
or incorporated governmental subdivision of the state or state agency for less than their
market value if:
(1) the county board determines that a sale at a reduced price is in the public interest
because a reduced price is necessary to provide an incentive to correct the blighted conditions
that make the lands undesirable in the open market, or the reduced price will lead to the
development of affordable housing; and
(2) the governmental subdivision or state agency has documented its specific plans for
correcting the blighted conditions or developing affordable housing, and the specific law
or laws that empower it to acquire real property in furtherance of the plans.
If the sale under this paragraph is to a governmental subdivision of the state, the
commissioner of revenue must convey the property on behalf of the state by quitclaim deed.
If the sale under this paragraph is to a state agency, new text begin the property is released from the trust
in favor of the taxing districts and new text end the commissioner new text begin of revenue new text end must deleted text begin issue a conveyance
document that releases the property from the trust in favor of the taxing districtsdeleted text end new text begin convey the
property on behalf of the state by quitclaim deed to the agencynew text end .
(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts may
be conveyed by the commissioner of revenue in the name of the state to a governmental
subdivision for an authorized public use, if an application is submitted to the commissioner
which includes a statement of facts as to the use to be made of the tract and the favorable
recommendation of the county board. For the purposes of this paragraph, "authorized public
use" means a use that allows an indefinite segment of the public to physically use and enjoy
the property in numbers appropriate to its size and use, or is for a public service facility.
Authorized public uses as defined in this paragraph are limited to:
(1) a road, or right-of-way for a road;
(2) a park that is both available to, and accessible by, the public that contains
improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
with a reasonable amount of surrounding land maintained in its natural state;
(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, including
transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and other
facilities related to a public transit system;
(5) public beaches or boat launches;
(6) public parking;
(7) civic recreation or conference facilities; and
(8) public service facilities such as fire halls, police stations, lift stations, water towers,
sanitation facilities, water treatment facilities, and administrative offices.
No monetary compensation or consideration is required for the conveyance, except as
provided in subdivision 1g, but the conveyance is subject to the conditions provided in law,
including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
land to a local governmental subdivision of the state by quitclaim deed on behalf of the state
upon the favorable recommendation of the county board if the governmental subdivision
has certified to the board that prior to forfeiture the subdivision was entitled to the parcel
under a written development agreement or instrument, but the conveyance failed to occur
prior to forfeiture. No compensation or consideration is required for, and no conditions
attach to, the conveyance.
(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
land to the association of a common interest community by quitclaim deed upon the favorable
recommendation of the county board if the association certifies to the board that prior to
forfeiture the association was entitled to the parcel under a written agreement, but the
conveyance failed to occur prior to forfeiture. No compensation or consideration is required
for, and no conditions attach to, the conveyance.
(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the
state for less than its market value for either: (1) creation or preservation of wetlands; (2)
drainage or storage of storm water under a storm water management plan; or (3) preservation,
or restoration and preservation, of the land in its natural state. The deed must contain a
restrictive covenant limiting the use of the land to one of these purposes for 30 years or
until the property is reconveyed back to the state in trust. At any time, the governmental
subdivision may reconvey the property to the state in trust for the taxing districts. The deed
of reconveyance is subject to approval by the commissioner of revenue. No part of a purchase
price determined under this paragraph shall be refunded upon a reconveyance, but the
amount paid for a conveyance under this paragraph may be taken into account by the county
board when setting the terms of a future sale of the same property to the same governmental
subdivision under paragraph (b) or (d). If the lands are unplatted and located outside of an
incorporated municipality and the commissioner of natural resources determines there is a
mineral use potential, the sale is subject to the approval of the commissioner of natural
resources.
(i) A park and recreation board in a city of the first class is a governmental subdivision
for the purposes of this section.
(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed by
the commissioner of revenue in the name of the state to a governmental subdivision for a
school forest under section 89.41. An application that includes a statement of facts as to the
use to be made of the tract and the favorable recommendation of the county board and the
commissioner of natural resources must be submitted to the commissioner of revenue. No
monetary compensation or consideration is required for the conveyance, but the conveyance
is subject to the conditional use and reversion provisions of subdivisions 1c and 1d, paragraph
(e). At any time, the governmental subdivision may reconvey the property back to the state
in trust for the taxing districts. The deed of reconveyance is subject to approval by the
commissioner of revenue.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 33.
Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read:
Subd. 1d.
Reverter for failure to use; conveyance to state.
(a) After three years from
the date of any conveyance of tax-forfeited land to a governmental subdivision for an
authorized public use as provided in this section, regardless of when the deed for the
authorized public use was executed, if the governmental subdivision has failed to put the
land to that use, or abandons that use, the governing body of the subdivision must: (1) with
the approval of the county board, purchase the property for an authorized public purpose
at the present market value as determined by the county board, or (2) authorize the proper
officers to convey the land, or the part of the land not required for an authorized public use,
to the state of Minnesota in trust for the taxing districts. If the governing body purchases
the property under clause (1), the commissioner of revenue shall, upon proper application
submitted by the county auditornew text begin and upon the reconveyance of the land subject to the
conditional use deed to the statenew text end , convey the property on behalf of the state by quitclaim
deed to the subdivision free of a use restriction and the possibility of reversion or
defeasement. If the governing body decides to reconvey the property to the state under this
clause, the officers shall execute a deed of conveyance immediately. The conveyance is
subject to the approval of the commissioner and its form must be approved by the attorney
general. For 15 years from the date of the conveyance, there is no failure to put the land to
the authorized public use and no abandonment of that use if a formal plan of the governmental
subdivision, including, but not limited to, a comprehensive plan or land use plan, shows an
intended future use of the land for the authorized public use.
(b) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue on or after January 1,
2007, may be acquired by that governmental subdivision after 15 years from the date of the
conveyance if the commissioner determines upon written application from the subdivision
that the subdivision has in fact put the property to the authorized public use for which it
was conveyed, and the subdivision has made a finding that it has no current plans to change
the use of the lands. Prior to conveying the property, the commissioner shall inquire whether
the county board where the land is located objects to a conveyance of the property to the
subdivision without conditions and without further act by or obligation of the subdivision.
If the county does not object within 60 days, and the commissioner makes a favorable
determination, the commissioner shall issue a quitclaim deed on behalf of the state
unconditionally conveying the property to the governmental subdivision. For purposes of
this paragraph, demonstration of an intended future use for the authorized public use in a
formal plan of the governmental subdivision does not constitute use for that authorized
public use.
(c) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue before January 1, 2007,
is released from the use restriction and possibility of reversion on January 1, 2022, if the
county board records a resolution describing the land and citing this paragraph. The county
board may authorize the county treasurer to deduct the amount of the recording fees from
future settlements of property taxes to the subdivision.
(d) Except for tax-forfeited land conveyed to establish a school forest under section
89.41, property conveyed under a conditional use deed executed under this section by the
commissioner of revenue, regardless of when the deed for the authorized public use was
executed, is released from the use restriction and reverter, and any use restriction or reverter
for which no declaration of reversion has been recorded with the county recorder or registrar
of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 years from
the date the deed was acknowledged; or (3) final resolution of an appeal to district court
under subdivision 1e, if a lis pendens related to the appeal is recorded in the office of the
county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a
school forest under section 89.41 is subject to a perpetual conditional use deed and reverter.
The property reverts to the state in trust for the taxing districts by operation of law if the
commissioner of natural resources determines and reports to the commissioner of revenue
under section 89.41, subdivision 3, that the governmental subdivision has failed to use the
land for school forest purposes for three consecutive years. The commissioner of revenue
shall record a declaration of reversion for land that has reverted under 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. 34.
Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision
to read:
new text begin Subd. 14. new text end
new text begin Communication by electronic mail. new text end
new text begin
Prior to receiving aid pursuant to this
section, a city must register an official electronic mail address with the commissioner, which
the commissioner may use as an exclusive means to communicate with the city.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2018 and thereafter.
new text end
Sec. 35.
Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Certification. new text end
new text begin
On or before June 1 of each year, the commissioner of natural
resources shall certify to the commissioner of revenue the number of watercraft launches
and the number of watercraft trailer parking spaces in each county.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2018 and thereafter.
new text end
Sec. 36.
Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision
to read:
new text begin Subd. 3b. new text end
new text begin Certification. new text end
new text begin
On or before June 1 of each year, the commissioner of natural
resources shall certify to the commissioner of revenue the counties that complied with the
requirements of subdivision 3 the prior year and are eligible to receive aid under this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2018 and thereafter.
new text end
Sec. 37.
Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read:
Subd. 2.
Exception.
This section does not applynew text begin to sales made under chapter 282 or new text end if
the purchaser is represented throughout the transaction by either:
(1) a person licensed to practice law in this state; or
(2) a person licensed as a real estate broker or salesperson under chapter 82, provided
that the representation does not create a dual agency, as that term is defined in section 82.55,
subdivision 6.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales of tax-forfeited land occurring
after the day following final enactment.
new text end
Sec. 38.
Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read:
Subd. 2.
Payment of supplemental credit.
new text begin (a) new text end The commissioner must pay supplemental
credit amounts to each qualifying taxpayer by October 15, 2014.
new text begin
(b) If the commissioner cannot locate the qualifying taxpayer by October 15, 2016, or
if a qualifying taxpayer to whom a warrant was issued does not cash that warrant within
two years from the date the warrant was issued, the right to the credit shall lapse and the
warrant shall be deposited in the general fund.
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. 39.
Laws 2014, chapter 308, article 9, section 94, is amended to read:
Sec. 94. REPEALER.
(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision
19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules,
part 8007.0200, are repealed.
(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision
2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, and
82; deleted text begin 272.027, subdivision 2;deleted text end 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075;
273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision
8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27,
subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71,
subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10,
subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i;
469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes
2013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and
Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7, are
repealed.
(c) Minnesota Statutes 2012, section 469.1764, is repealed.
(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38;
469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339;
469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement,
section 469.340, subdivision 4, are repealed.
(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from May 20, 2014, and
pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027,
subdivision 2, is revived and reenacted as of that date.
new text end
Sec. 40. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2016, section 281.22,
new text end
new text begin
is repealed.
new text end
new text begin
(b)
new text end
new text begin
Minnesota Rules, part 8100.0700,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
Paragraph (a) is effective the day following final enactment.
Paragraph (b) is effective beginning with assessment year 2017.
new text end
ARTICLE 15
DEPARTMENT POLICY AND TECHNICAL PROVISIONS; MISCELLANEOUS
Section 1.
Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read:
Subdivision 1.
Annual report required.
Every railroad company doing business in
Minnesota shall annually file with the commissioner on or before March 31 a report under
oath setting forth the information prescribed by the commissioner to enable the commissioner
to make the valuation and equalization required by sections 270.80 to 270.87.new text begin The
commissioner shall prescribe the content, format, and manner of the report pursuant to
section 270C.30, except that a "law administered by the commissioner" includes the property
tax laws. If a report is made by electronic means, the taxpayer's signature is defined pursuant
to section 270C.304, except that a "law administered by the commissioner" includes the
property tax laws.
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. 2.
Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read:
Subd. 5.
Debt.
(a) "Debt" means a legal obligation of a natural person to pay a fixed and
certain amount of money, which equals or exceeds $25 and which is due and payable to a
claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125,
fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and
restitution. A debt may arise under a contractual or statutory obligation, a court order, or
other legal obligation, but need not have been reduced to judgment.
A debt includes any legal obligation of a current recipient of assistance which is based
on overpayment of an assistance grant where that payment is based on a client waiver or
an administrative or judicial finding of an intentional program violation; or where the debt
is owed to a program wherein the debtor is not a client at the time notification is provided
to initiate recovery under this chapter and the debtor is not a current recipient of food support,
transitional child care, or transitional medical assistance.
(b) A debt does not include any legal obligation to pay a claimant agency for medical
care, including hospitalization if the income of the debtor at the time when the medical care
was rendered does not exceed the following amount:
(1) for an unmarried debtor, an income of deleted text begin $8,800deleted text end new text begin $12,560new text end or less;
(2) for a debtor with one dependent, an income of deleted text begin $11,270deleted text end new text begin $16,080new text end or less;
(3) for a debtor with two dependents, an income of deleted text begin $13,330deleted text end new text begin $19,020new text end or less;
(4) for a debtor with three dependents, an income of deleted text begin $15,120deleted text end new text begin $21,580new text end or less;
(5) for a debtor with four dependents, an income of deleted text begin $15,950deleted text end new text begin $22,760new text end or less; and
(6) for a debtor with five or more dependents, an income of deleted text begin $16,630deleted text end new text begin $23,730new text end or less.
new text begin
For purposes of this paragraph, "debtor" means the individual whose income, together
with the income of the individual's spouse, other than a separated spouse, brings the
individual within the income provisions of this paragraph. For purposes of this paragraph,
a spouse, other than a separated spouse, shall be considered a dependent.
new text end
(c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)(B) the word "deleted text begin 1999deleted text end new text begin 2014new text end " shall be substituted for the word "1992."
For deleted text begin 2001deleted text end new text begin 2016new text end , the commissioner shall then determine the percent change from the 12
months ending on August 31, deleted text begin 1999deleted text end new text begin 2014new text end , to the 12 months ending on August 31, deleted text begin 2000deleted text end new text begin 2015new text end ,
and in each subsequent year, from the 12 months ending on August 31, deleted text begin 1999deleted text end new text begin 2014new text end , to the
12 months ending on August 31 of the year preceding the taxable year. The determination
of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
not be subject to the Administrative Procedure Act contained in chapter 14. The income
amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5,
the amount is rounded up to the nearest $10 amount.
(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the
dollar amount of the premium authorized under section 256L.15, subdivision 1a.
new text begin EFFECTIVE DATE. new text end
new text begin
The section is effective retroactively for debts incurred after
December 31, 2014.
new text end
Sec. 3.
Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read:
Subdivision 1.
Disclosure to commissioner of human services.
(a) On the request of
the commissioner of human services, the commissioner shall disclose return information
regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the
extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
(b) Data that may be disclosed are limited to data relating to the identity, whereabouts,
employment, income, and property of a person owing or alleged to be owing an obligation
of child support.
(c) The commissioner of human services may request data only for the purposes of
carrying out the child support enforcement program and to assist in the location of parents
who have, or appear to have, deserted their children. Data received may be used only as set
forth in section 256.978.
(d) The commissioner shall provide the records and information necessary to administer
the supplemental housing allowance to the commissioner of human services.
(e) At the request of the commissioner of human services, the commissioner of revenue
shall electronically match the Social Security numbers and names of participants in the
telephone assistance plan operated under sections 237.69 to 237.71, with those of property
tax refund filers, and determine whether each participant's household income is within the
eligibility standards for the telephone assistance plan.
(f) The commissioner may provide records and information collected under sections
295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
102-234. Upon the written agreement by the United States Department of Health and Human
Services to maintain the confidentiality of the data, the commissioner may provide records
and information collected under sections 295.50 to 295.59 to the Centers for Medicare and
Medicaid Services section of the United States Department of Health and Human Services
for purposes of meeting federal reporting requirements.
(g) The commissioner may provide records and information to the commissioner of
human services as necessary to administer the early refund of refundable tax credits.
(h) The commissioner may disclose information to the commissioner of human services
new text begin as new text end necessary deleted text begin to verify incomedeleted text end new text begin for income verificationnew text end for eligibility and premium payment
under the MinnesotaCare program, under section 256L.05, subdivision 2new text begin , as well as the
medical assistance program under section 256Bnew text end .
(i) The commissioner may disclose information to the commissioner of human services
necessary to verify whether applicants or recipients for the Minnesota family investment
program, general assistance, food support, Minnesota supplemental aid program, and child
care assistance have claimed refundable tax credits under chapter 290 and the property tax
refund under chapter 290A, and the amounts of the credits.
(j) The commissioner may disclose information to the commissioner of human services
necessary to verify income for purposes of calculating parental contribution amounts under
section 252.27, subdivision 2a.
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 2016, section 270C.30, is amended to read:
270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.
new text begin Except as otherwise provided by law,new text end the commissioner shall prescribe the content deleted text begin anddeleted text end new text begin ,new text end
formatnew text begin , and mannernew text end of all returns and other forms required to be filed under a law
administered by the commissioner, and may furnish them subject to charge on application.
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 2016, section 270C.33, subdivision 5, is amended to read:
Subd. 5.
Prohibition against collection during appeal period of an order.
No collection
action can be taken on an order of assessment, or any other order imposing a liability,
including the filing of liens under section 270C.63, and no late payment penalties may be
imposed when a return has been filed for the tax type and period upon which the order is
based, during the appeal period of an order. The appeal period of an order ends: (1) 60 days
after the deleted text begin order has been mailed to the taxpayerdeleted text end new text begin notice date designatednew text end by the commissionernew text begin
on the ordernew text end ; (2) if an administrative appeal is filed under section 270C.35, 60 days afternew text begin
the notice date designated by the commissioner on the writtennew text end determination of the
administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the
decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal
is based upon a constitutional challenge to the tax, 60 days after final determination of the
appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36,
or a jeopardy collection under section 270C.36.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for orders dated after December 31,
2017.
new text end
Sec. 6.
Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read:
Subd. 8.
Sufficiency of notice.
An assessment of tax made by the commissioner, sent
postage prepaid by United States mail to the taxpayer at the taxpayer's last known address,
or sent by electronic mail to the taxpayer's last known electronic mailing address as provided
for in section 325L.08, is sufficient even if the taxpayer is deceased or is under a legal
disability, or, in the case of a corporation, has terminated its existence, unless the
commissioner has been provided with a new address by a party authorized to receive notices
of assessment.new text begin Notice of an assessment is sufficient if it is sent on or before the notice date
designated by the commissioner on the assessment.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessments dated after December
31, 2017.
new text end
Sec. 7.
Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read:
Subd. 2.
Procedure.
(a) A request for abatement of penalty under subdivision 1 or
section 289A.60, subdivision 4, or a request for abatement of interest or additional tax
charge, must be filed with the commissioner within 60 days of the new text begin notice new text end date new text begin of new text end the deleted text begin notice
was mailed to the taxpayer's last known address, stating that adeleted text end penalty deleted text begin has been imposed deleted text end new text begin or
additional tax charge. For purposes of this section, the term "notice date" means the notice
date designated by the commissioner on the order or other notice that a penalty or additional
tax charge has been imposednew text end .
(b) If the commissioner issues an order denying a request for abatement of penalty,
interest, or additional tax charge, the taxpayer may file an administrative appeal as provided
in section 270C.35 or appeal to Tax Court as provided in section 271.06.
(c) If the commissioner does not issue an order on the abatement request within 60 days
from the date the request is received, the taxpayer may appeal to Tax Court as provided in
section 271.06.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for orders and notices dated after
December 31, 2017.
new text end
Sec. 8.
Minnesota Statutes 2016, section 270C.347, subdivision 1, is amended to read:
Subdivision 1.
Checks and warrants, authority to reissue.
Notwithstanding any other
provision of law, the commissioner may, based on a showing of reasonable cause, reissue
an uncashed rebatenew text begin , supplemental agricultural credit,new text end or property tax refund warrant or check
that has lapsed under any provision of law relating to rebates or under section 290A.18,
subdivision 2. The authority to reissue warrants or checks under this subdivision is limited
to five years after the date of issuance of the original warrant or check.
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 2016, section 270C.35, subdivision 3, is amended to read:
Subd. 3.
Notice date.
For purposes of this section, the term "notice date" means the date
deleted text begin ofdeleted text end new text begin designated by the commissioner onnew text end the order adjusting the tax or order denying a request
for abatement, or, in the case of a denied refund, thenew text begin noticenew text end date deleted text begin ofdeleted text end new text begin designated by the
commissioner onnew text end the notice of denial.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for orders and notices dated after
December 31, 2017.
new text end
Sec. 10.
Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision
to read:
new text begin Subd. 11. new text end
new text begin Dismissal of administrative appeal. new text end
new text begin
If a taxpayer files an administrative
appeal for an order of the commissioner and also files an appeal to the Tax Court for that
same order of the commissioner, the administrative appeal is dismissed and the commissioner
is no longer required to make a determination of appeal under subdivision 6.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for all administrative appeals filed after
December 30, 2016.
new text end
Sec. 11.
Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read:
Subdivision 1.
Sufficient notice.
(a) If no method of notification of a written
determination or action of the commissioner is otherwise specifically provided for by law,
notice of the determination or action sent postage prepaid by United States mail to the
taxpayer or other person affected by the determination or action at the taxpayer's or person's
last known address, is sufficient. If the taxpayer or person being notified is deceased or is
under a legal disability, or, in the case of a corporation being notified that has terminated
its existence, notice to the last known address of the taxpayer, person, or corporation is
sufficient, unless the department has been provided with a new address by a party authorized
to receive notices from the commissioner.
(b) If a taxpayer or other person agrees to accept notification by electronic means, notice
of a determination or action of the commissioner sent by electronic mail to the taxpayer's
or person's last known electronic mailing address as provided for in section 325L.08 is
sufficient.
new text begin
(c) Notice of a determination or action of the commissioner is sufficient if it is sent on
or before the notice date designated by the commissioner on the notice.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for notices dated after December 31,
2017.
new text end
Sec. 12.
Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision
to read:
new text begin Subd. 9. new text end
new text begin Enforcement; limitations. new text end
new text begin
(a) Notwithstanding any other law, the imposition
of a penalty or any other action against a tax return preparer authorized by subdivision 6
with respect to a return may be taken by the commissioner within the period provided by
section 289A.38 to assess tax on that return.
new text end
new text begin
(b) Imposition of a penalty or other action against a tax return preparer authorized by
subdivision 6 other than with respect to a return must be taken by the commissioner within
five years of the violation of statute.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for tax preparation services provided
after the day following final enactment.
new text end
Sec. 13.
Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:
Subd. 5.
Removal from list.
The commissioner shall remove the name of a tax preparer
from the list of tax preparers published under this section:
(1) when the commissioner determines that the name was included on the list in error;
(2) within deleted text begin 90 daysdeleted text end new text begin three yearsnew text end after the preparer has demonstrated to the commissioner
that the preparer fully paid all finesnew text begin or penaltiesnew text end imposed, served any suspension, satisfied
any sentence imposed,new text begin successfully completed any probationary period imposed,new text end and
successfully completed any remedial actions required by the commissioner, the State Board
of Accountancy, or the Lawyers Board of Professional Responsibility; or
(3) when the commissioner has been notified that the tax preparer is deceased.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read:
Subd. 4.
Licensing authority; duties.
All licensing authorities must require the applicant
to provide the applicant's Social Security number new text begin or individual taxpayer identification
number new text end and Minnesota business identification numbernew text begin , as applicable,new text end on all license
applications. Upon request of the commissioner, the licensing authority must provide the
commissioner with a list of all applicants, including the name, address, business name and
address, new text begin and new text end Social Security numberdeleted text begin ,deleted text end new text begin or individual taxpayer identification numbernew text end and
business identification numbernew text begin , as applicable,new text end of each applicant. The commissioner may
request from a licensing authority a list of the applicants no more than once each calendar
year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 15.
Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read:
Subd. 2.
Time; notice; intervention.
Except as otherwise provided by law, within 60
days after new text begin the new text end notice deleted text begin of the making and filingdeleted text end new text begin datenew text end of an order of the commissioner of revenue,
the appellant, or the appellant's attorney, shall serve a notice of appeal upon the commissioner
and file the original, with proof of such service, with the Tax Court administrator or with
the court administrator of district court acting as court administrator of the Tax Court;
provided, that the Tax Court, for cause shown, may by written order extend the time for
appealing for an additional period not exceeding 30 days.new text begin For purposes of this section, the
term "notice date" means the notice date designated by the commissioner on the order.new text end The
notice of appeal shall be in the form prescribed by the Tax Court. Within five days after
receipt, the commissioner shall transmit a copy of the notice of appeal to the attorney general.
The attorney general shall represent the commissioner, if requested, upon all such appeals
except in cases where the attorney general has appealed in behalf of the state, or in other
cases where the attorney general deems it against the interests of the state to represent the
commissioner, in which event the attorney general may intervene or be substituted as an
appellant in behalf of the state at any stage of the proceedings.
Upon a final determination of any other matter over which the court is granted jurisdiction
under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a
petition or notice of appeal as provided by law with the court administrator of district court,
acting in the capacity of court administrator of the Tax Court, with proof of service of the
petition or notice of appeal as required by law and within the time required by law. As used
in this subdivision, "final determination" includes a notice of assessment and equalization
for the year in question received from the local assessor, an order of the local board of
equalization, or an order of a county board of equalization.
The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed
with the district court administrator acting as court administrator of the Tax Court is
forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
property valuation for which the assessor, a local board of equalization, a county board of
equalization or the commissioner of revenue has issued an order, the officer issuing the
order shall be notified of the filing of the appeal. The notice of appeal or petition shall be
in the form prescribed by the Tax Court.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for orders dated after December 31,
2017.
new text end
Sec. 16.
Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read:
Subd. 7.
Rules.
Except as provided in section 278.05, subdivision 6, the Rules of
Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures
in the Tax Court, where practicable. new text begin The Rules of Civil Procedure do not apply to alter the
60-day period of time to file a notice of appeal provided in subdivision 2. new text end The Tax Court
may adopt rules under chapter 14.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for orders dated after December 31,
2017.
new text end
Sec. 17.
Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read:
Subd. 10.
Personal property used for pollution control.
Personal property used
primarily for the abatement and control of air, water, or land pollution is exempt to the
extent that it is so used, and real property is exempt if it is used primarily for abatement and
control of air, water, or land pollution as part of an agricultural operation, as a part of a
centralized treatment and recovery facility operating under a permit issued by the Minnesota
Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts
7001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility
and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges,
or inorganic materials from hazardous industrial wastes, or as part of an electric generation
system. For purposes of this subdivision, personal property includes ponderous machinery
and equipment used in a business or production activity that at common law is considered
real property.
Any taxpayer requesting exemption of all or a portion of any real property or any
equipment or device, or part thereof, operated primarily for the control or abatement of air,
water, or land pollution shall file an application with the commissioner of revenue. The
commissioner shall develop an electronic means to notify interested parties when electric
power generation facilities have filed an application. new text begin The commissioner shall prescribe the
content, format, and manner of the application pursuant to section 270C.30, except that a
"law administered by the commissioner" includes the property tax laws, and if an application
is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304,
except that a "law administered by the commissioner" includes the property tax laws. new text end The
Minnesota Pollution Control Agency shall upon request of the commissioner furnish
information and advice to the commissioner.
The information and advice furnished by the Minnesota Pollution Control Agency must
include statements as to whether the equipment, device, or real property meets a standard,
rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and
whether the equipment, device, or real property is installed or operated in accordance with
it. On determining that property qualifies for exemption, the commissioner shall issue an
order exempting the property from taxation. The commissioner shall develop an electronic
means to notify interested parties when the commissioner has issued an order exempting
property from taxation under this subdivision. The equipment, device, or real property shall
continue to be exempt from taxation as long as the order issued by the commissioner remains
in effect.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18.
Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read:
Subdivision 1.
Efficiency determination and certification.
An owner or operator of a
new or existing electric power generation facility, excluding wind energy conversion systems,
may apply to the commissioner of revenue for a market value exclusion on the property as
provided for in this section. This exclusion shall apply only to the market value of the
equipment of the facility, and shall not apply to the structures and the land upon which the
facility is located. The commissioner of revenue shall prescribe the deleted text begin formsdeleted text end new text begin content, format,
manner,new text end and procedures for this applicationnew text begin pursuant to section 270C.30, except that a "law
administered by the commissioner" includes the property tax laws. If an application is made
by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except
that a "law administered by the commissioner" includes the property tax lawsnew text end . Upon receiving
the application, the commissioner of revenue shall: (1) request the commissioner of commerce
to make a determination of the efficiency of the applicant's electric power generation facility;
and (2) shall develop an electronic means to notify interested parties when electric power
generation facilities have filed an application. The commissioner of commerce shall calculate
efficiency as the ratio of useful energy outputs to energy inputs, expressed as a percentage,
based on the performance of the facility's equipment during normal full load operation. The
commissioner must include in this formula the energy used in any on-site preparation of
materials necessary to convert the materials into the fuel used to generate electricity, such
as a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value
(HHV) for all substances in the commissioner's efficiency calculations, except for wood
for fuel in a biomass-eligible project under section 216B.2424; for these instances, the
commissioner shall adjust the heating value to allow for energy consumed for evaporation
of the moisture in the wood. The applicant shall provide the commissioner of commerce
with whatever information the commissioner deems necessary to make the determination.
Within 30 days of the receipt of the necessary information, the commissioner of commerce
shall certify the findings of the efficiency determination to the commissioner of revenue
and to the applicant. The commissioner of commerce shall determine the efficiency of the
facility and certify the findings of that determination to the commissioner of revenue every
two years thereafter from the date of the original certification.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19.
Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:
Subdivision 1.
Statement of exemption.
(a) Except in the case of property owned by
the state of Minnesota or any political subdivision thereof, and property exempt from taxation
under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times
provided in subdivision 3, a taxpayer claiming an exemption from taxation on property
described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with
the assessor of the assessment district in which the property is located.
(b) A taxpayer claiming an exemption from taxation on property described in section
272.02, subdivision 10, must file a statement of exemption with the commissioner of revenue,
on or before February 15 of each year for which the taxpayer claims an exemption.
(c) In case of sickness, absence or other disability or for good cause, the assessor or the
commissioner may extend the time for filing the statement of exemption for a period not to
exceed 60 days.
(d) The commissioner of revenue shall prescribe the deleted text begin form and contentsdeleted text end new text begin content, format,
and mannernew text end of the statement of exemptionnew text begin pursuant to section 270C.30, except that a "law
administered by the commissioner" includes the property tax lawsnew text end .
new text begin
(e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant
to section 270C.304, except that a "law administered by the commissioner" includes the
property tax laws.
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. 20.
Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read:
Subd. 4.
Reports.
(a) An owner of a wind energy conversion system subject to tax under
subdivision 3 shall file a report with the commissioner of revenue annually on or before
deleted text begin February 1deleted text end new text begin January 15new text end detailing the amount of electricity in kilowatt-hours that was produced
by the wind energy conversion system for the previous calendar year. The commissioner
shall prescribe the deleted text begin formdeleted text end new text begin content, format, and mannernew text end of the reportnew text begin pursuant to section
270C.30, except that a "law administered by the commissioner" includes the property tax
lawsnew text end . The report must contain the information required by the commissioner to determine
the tax due to each county under this section for the current year. If an owner of a wind
energy conversion system subject to taxation under this section fails to file the report by
the due date, the commissioner of revenue shall determine the tax based upon the nameplate
capacity of the system multiplied by a capacity factor of 60 percent.
new text begin
(b) If a report is made by electronic means, the taxpayer's signature is defined pursuant
to section 270C.304, except that a "law administered by the commissioner" includes the
property tax laws.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end On or before February 28, the commissioner of revenue shall notify the owner
of the wind energy conversion systems of the tax due to each county for the current year
and shall certify to the county auditor of each county in which the systems are located the
tax due from each owner for the current year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
that the amendment in paragraph (a) moving the date to file the report is effective for reports
filed in 2017 and thereafter.
new text end
Sec. 21.
Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read:
Subd. 4.
Reports.
An owner of a solar energy generating system subject to tax under
this section shall file a report with the commissioner of revenue annually on or before
January 15 detailing the amount of electricity in megawatt-hours that was produced by the
system in the previous calendar year. The commissioner shall prescribe the deleted text begin formdeleted text end new text begin content,
format, and mannernew text end of the reportnew text begin pursuant to section 270C.30new text end . The report must contain the
information required by the commissioner to determine the tax due to each county under
this section for the current year. If an owner of a solar energy generating system subject to
taxation under this section fails to file the report by the due date, the commissioner of
revenue shall determine the tax based upon the nameplate capacity of the system multiplied
by a capacity factor of 30 percent.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 22.
Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:
Subd. 2.
Form; information required.
The certificate of value shall require such facts
and information as may be determined by the commissioner to be reasonably necessary in
the administration of the state education aid formulas. The deleted text begin formdeleted text end new text begin commissioner shall prescribe
the content, format, and mannernew text end of the certificate of value deleted text begin shall be prescribed by the
Department of Revenue which shall provide an adequate supply of forms to each county
auditordeleted text end new text begin pursuant to section 270C.30, except that a "law administered by the commissioner"
includes the property tax lawsnew 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. 23.
Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:
Subd. 13.
Homestead application.
(a) A person who meets the homestead requirements
under subdivision 1 must file a homestead application with the county assessor to initially
obtain homestead classification.
(b) deleted text begin The format and contents of a uniform homestead application shall be prescribed by
the commissioner of revenue.deleted text end new text begin The commissioner shall prescribe the content, format, and
manner of the homestead application required to be filed under this chapter pursuant to
section 270C.30. new text end The application must clearly inform the taxpayer that this application must
be signed by all owners who occupy the property or by the qualifying relative and returned
to the county assessor in order for the property to receive homestead treatment.
(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number of each occupant who is listed as an owner of
the property on the deed of record, the name and address of each owner who does not occupy
the property, and the name and Social Security number of each owner's spouse who occupies
the property. The application must be signed by each owner who occupies the property and
by each owner's spouse who occupies the property, or, in the case of property that qualifies
as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property owner's spouse may not claim
another property as a homestead unless the property owner and the property owner's spouse
file with the assessor an affidavit or other proof required by the assessor stating that the
property qualifies as a homestead under subdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spouses and previously occupied
with the other spouse, either of whom fail to include the other spouse's name and Social
Security number on the homestead application or provide the affidavits or other proof
requested, will be deemed to have elected to receive only partial homestead treatment of
their residence. The remainder of the residence will be classified as nonhomestead residential.
When an owner or spouse's name and Social Security number appear on homestead
applications for two separate residences and only one application is signed, the owner or
spouse will be deemed to have elected to homestead the residence for which the application
was signed.
(d) If residential real estate is occupied and used for purposes of a homestead by a relative
of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
the property to receive homestead status, a homestead application must be filed with the
assessor. The Social Security number of each relative and spouse of a relative occupying
the property shall be required on the homestead application filed under this subdivision. If
a different relative of the owner subsequently occupies the property, the owner of the property
must notify the assessor within 30 days of the change in occupancy. The Social Security
number of a relative or relative's spouse occupying the property is private data on individuals
as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of
revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover
personal property taxes owing, to the county treasurer.
(e) The homestead application shall also notify the property owners that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or the
owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section 272.115. Failure to notify
the assessor within 30 days that the property has been sold, transferred, or that the owner,
the spouse of the owner, or the relative is no longer occupying the property as a homestead,
shall result in the penalty provided under this subdivision and the property will lose its
current homestead status.
(f) If a homestead application has not been filed with the county by December 15, the
assessor shall classify the property as nonhomestead for the current assessment year for
taxes payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section 375.192.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 24.
Minnesota Statutes 2016, section 273.371, is amended to read:
273.371 REPORTS OF UTILITY COMPANIES.
Subdivision 1.
Report required.
Every electric light, power, gas, water, express, stage,
deleted text begin anddeleted text end transportation deleted text begin companydeleted text end new text begin ,new text end and pipelinenew text begin companynew text end doing business in Minnesota shall
annually file with the commissioner on or before March 31 a report under oath setting forth
the information prescribed by the commissioner to enable the commissioner to make
valuations, recommended valuations, and equalization required under sections 273.33,
273.35, 273.36, 273.37, and 273.3711.new text begin The commissioner shall prescribe the content, format,
and manner of the report pursuant to section 270C.30, except that a "law administered by
the commissioner" includes the property tax laws.new text end If all the required information is not
available on March 31, the company or pipeline shall file the information that is available
on or before March 31, and the balance of the information as soon as it becomes available.new text begin
If a report is made by electronic means, the taxpayer's signature is defined pursuant to section
270C.304, except that a "law administered by the commissioner" includes the property tax
laws.
new text end
Subd. 2.
Extension.
The commissioner for good cause may extend the time for filing
the report required by subdivision 1. The extension deleted text begin maydeleted text end new text begin mustnew text end not exceed 15 days.
new text begin Subd. 3. new text end
new text begin Reports filed by the commissioner. new text end
new text begin
If a company fails to file a report required
by subdivision 1, the commissioner may, from information in the commissioner's possession
or obtainable by the commissioner, make and file a report for the company or make the
valuations, recommended valuations, and equalizations required under sections 273.33,
273.35 to 273.37, and 273.3711.
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. 25.
Minnesota Statutes 2016, section 287.2205, is amended to read:
287.2205 TAX-FORFEITED LAND.
Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by
the purchaser of tax-forfeited land whether the purchase is the result of a public auction or
private sale or a repurchase of tax-forfeited land. State agencies and local units of government
that acquire tax-forfeited land by purchase or any other means are subject to this section.
The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision
for an authorized public use under section 282.01, subdivision 1a,new text begin for a school forest under
section 282.01, subdivision 1a,new text end or for redevelopment purposes under section 282.01,
subdivision 1b.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 26.
Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision
to read:
new text begin Subd. 17. new text end
new text begin Format. new text end
new text begin
The commissioner shall prescribe the content, format, and manner
of the returns and other documents pursuant to section 270C.30. This does not authorize
the commissioner to require individual income taxpayers to file individual income tax returns
electronically.
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. 27.
Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read:
Subdivision 1.
Returns.
(a) An employer who is required to deduct and withhold tax
under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax
under section 290.923, subdivision 2, must file a return with the commissioner for each
quarterly period unless otherwise prescribed by the commissioner.
(b) A person or corporation required to make deposits under section 290.9201, subdivision
8, must file an entertainer withholding tax return with the commissioner.
(c) A person required to withhold an amount under section 290.9705, subdivision 1,
must file a return.
(d) A partnership required to deduct and withhold tax under section 290.92, subdivision
4b, must file a return.
(e) An S corporation required to deduct and withhold tax under section 290.92,
subdivision 4c, must also file a return.
(f) deleted text begin Returns must be filed in the form and manner, and contain the information prescribed
by the commissioner.deleted text end new text begin The commissioner shall prescribe the content, format, and manner
of the returns pursuant to section 270C.30. new text end Every return for taxes withheld must be signed
by the employer, entertainment entity, contract payor, partnership, or S corporation, or a
designee.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 28.
Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read:
Subdivision 1.
Return required.
(a) Except as provided in section 289A.18, subdivision
4, for the month in which taxes imposed by chapter 297A are payable, or for which a return
is due, a return for the preceding reporting period must be filed with the commissioner deleted text begin in
the form and manner the commissioner prescribesdeleted text end . new text begin The commissioner shall prescribe the
content, format, and manner of the returns pursuant to section 270C.30. new text end A person making
sales at retail at two or more places of business may file a consolidated return subject to
rules prescribed by the commissioner. In computing the dollar amount of items on the return,
the amounts are rounded off to the nearest whole dollar, disregarding amounts less than 50
cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.
(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax
permit under chapter 297A and who makes annual purchases, for use in a trade or business,
of less than $18,500, or a person who is not required to hold a sales tax permit and who
makes purchases for personal use, that are subject to the use tax imposed by section 297A.63,
may file an annual use tax return deleted text begin on a form prescribed by the commissionerdeleted text end . new text begin The
commissioner shall prescribe the content, format, and manner of the return pursuant to
section 270C.30. new text end If a person who qualifies for an annual use tax reporting period is required
to obtain a sales tax permit or makes use tax purchases, for use in a trade or business, in
excess of $18,500 during the calendar year, the reporting period must be considered ended
at the end of the month in which the permit is applied for or the purchase in excess of
$18,500 is made and a return must be filed for the preceding reporting period.
(c) Notwithstanding deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (a)new text begin and (b)new text end , a person prohibited by the person's
religious beliefs from using electronics shall be allowed to file by mail, without any additional
fees. The filer must notify the commissioner of revenue of the intent to file by mail on a
form prescribed by the commissioner. A return filed under this paragraph must be postmarked
no later than the day the return is due in order to be considered filed 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. 29.
Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read:
Subdivision 1.
Individual income, fiduciary income, corporate franchise, and
entertainment taxes; partnership and S corporation returns; information returns;
mining company returns.
The returns required to be made under sections 289A.08 and
289A.12 must be filed at the following times:
(1) returns made on the basis of the calendar year must be filed on April 15 following
the close of the calendar year, except that returns of corporationsnew text begin and partnershipsnew text end must be
filed on the due date for filing the federal income tax return;
(2) returns made on the basis of the fiscal year must be filed on the 15th day of the fourth
month following the close of the fiscal year, except that returns of corporationsnew text begin and
partnershipsnew text end must be filed on the due date for filing the federal income tax return;
(3) returns for a fractional part of a year must be filed on the due date for filing the
federal income tax return;
(4) in the case of a final return of a decedent for a fractional part of a year, the return
must be filed on the 15th day of the fourth month following the close of the 12-month period
that began with the first day of that fractional part of a year;
(5) in the case of the return of a cooperative association, returns must be filed on or
before the 15th day of the ninth month following the close of the taxable year;
(6) if a corporation has been divested from a unitary group and files a return for a
fractional part of a year in which it was a member of a unitary business that files a combined
report under section 290.17, subdivision 4, the divested corporation's return must be filed
on the 15th day of the third month following the close of the common accounting period
that includes the fractional year;
(7) returns of entertainment entities must be filed on April 15 following the close of the
calendar year;
(8) returns required to be filed under section 289A.08, subdivision 4, must be filed on
the 15th day of the fifth month following the close of the taxable year;
(9) returns of mining companies must be filed on May 1 following the close of the
calendar year; and
(10) returns required to be filed with the commissioner under section 289A.12,
subdivision 2, 4 to 10, or 16 must be filed within 30 days after being demanded by the
commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 30.
Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read:
Subd. 2.
Erroneous refunds.
deleted text begin
An erroneous refund is considered an underpayment of
tax on the date made. An assessment of a deficiency arising out of an erroneous refund may
be made at any time within two years from the making of the refund. If part of the refund
was induced by fraud or misrepresentation of a material fact, the assessment may be made
at any time.
deleted text end
new text begin
(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.
new text end
new text begin
(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:
new text end
new text begin
(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
new text end
new text begin
(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
taxpayer.
new text end
new text begin
(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.
new text end
new text begin
(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
conducted under section 289A.38.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies retroactively to all refunds issued on, before, or after that date, but does not apply
to the refunds at issue in Connexus Energy et al. v. Commissioner of Revenue, 868 N.W.2d
234 (Minn. 2015). Notwithstanding any law to the contrary, the changes in this section do
not invalidate any assessments made by the commissioner prior to this effective date.
new text end
Sec. 31.
Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read:
Subd. 7.
Remedies.
(a) If the taxpayer is notified by the commissioner that the refund
claim is denied in whole or in part, the taxpayer may:
(1) file an administrative appeal as provided in section 270C.35, or an appeal with the
Tax Court, within 60 days after deleted text begin issuancedeleted text end new text begin the notice datenew text end of the commissioner's notice of
denial; or
(2) file an action in the district court to recover the refund.
(b) An action in the district court on a denied claim for refund must be brought within
18 months of the new text begin notice new text end date of the denial of the claim by the commissioner.new text begin For the purposes
of this section, "notice date" is defined in section 270C.35, subdivision 3.
new text end
(c) No action in the district court or the Tax Court shall be brought within six months
of the filing of the refund claim unless the commissioner denies the claim within that period.
(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
of the claim, the taxpayer may bring an action in the district court or the Tax Court at any
time after the expiration of six months from the time the claim was filed.
(e) The commissioner and the taxpayer may agree to extend the period for bringing an
action in the district court.
(f) An action for refund of tax by the taxpayer must be brought in the district court of
the district in which lies the county of the taxpayer's residence or principal place of business.
In the case of an estate or trust, the action must be brought at the principal place of its
administration. Any action may be brought in the district court for Ramsey County.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims for refund denied after
December 31, 2017.
new text end
Sec. 32.
new text begin
[290B.11] FORMS.
new text end
new text begin
The commissioner shall prescribe the content, format, and manner of all forms and other
documents required to be filed under this chapter pursuant to section 270C.30.
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. 33.
new text begin
[290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.
new text end
new text begin
On request of the commissioner, the commissioner of natural resources must annually
provide verification that the claimant has a current forest management plan on file with the
Department of Natural Resources.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for certifications filed after July 1, 2017.
new text end
Sec. 34.
new text begin
[293.15] FORMS.
new text end
new text begin
The commissioner shall prescribe the content, format, and manner of all forms and other
documents required to be filed under this chapter pursuant to section 270C.30.
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. 35.
Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read:
Subd. 6.
Form of returns.
deleted text begin
The estimated payments and annual return must contain the
information and be in the form prescribed by the commissioner.
deleted text end
new text begin
The commissioner shall
prescribe the content, format, and manner of the estimated payment forms and annual return
pursuant to section 270C.30.
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. 36.
Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision
to read:
new text begin Subd. 5. new text end
new text begin Forms. new text end
new text begin
The commissioner shall prescribe the content, format, and manner of
all forms and other documents required to be filed under this chapter pursuant to section
270C.30.
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. 37.
Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read:
Subd. 9.
Abatement of penalty.
(a) The commissioner may by written order abate any
penalty imposed under this section, if in the commissioner's opinion there is reasonable
cause to do so.
(b) A request for abatement of penalty must be filed with the commissioner within 60
days of the new text begin notice new text end date new text begin of new text end the deleted text begin notice stating that adeleted text end penalty deleted text begin has been imposed was mailed to
the taxpayer's last known addressdeleted text end .new text begin For purposes of this section, the term "notice date" means
the notice date designated by the commissioner on the order or other notice that a penalty
has been imposed.
new text end
(c) If the commissioner issues an order denying a request for abatement of penalty, the
taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax
Court as provided in section 271.06. If the commissioner does not issue an order on the
abatement request within 60 days from the date the request is received, the taxpayer may
appeal to Tax Court as provided in section 271.06.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for orders and notices dated after
December 31, 2017.
new text end
Sec. 38.
Minnesota Statutes 2016, section 296A.26, is amended to read:
296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.
In lieu of an administrative appeal under section 270C.35, any person aggrieved by an
order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
60 days from the new text begin notice new text end date of deleted text begin the notice ofdeleted text end the order, appeal to the Tax Court in the manner
provided under section 271.06.new text begin For purposes of this section, the term "notice date" means
the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for orders dated after December 31,
2017.
new text end
Sec. 39.
Minnesota Statutes 2016, section 297D.02, is amended to read:
297D.02 ADMINISTRATION.
The commissioner of revenue shall administer this chapter.new text begin The commissioner shall
prescribe the content, format, and manner of all forms and other documents required to be
filed under this chapter pursuant to section 270C.30.new text end Payments required by this chapter
must be made to the commissioner on the form provided by the commissioner. Tax obligors
are not required to give their name, address, Social Security number, or other identifying
information on the form. The commissioner shall collect all taxes under this chapter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 40.
Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read:
Subd. 3.
Collection; disposition.
(a) Taxes imposed by this section are due and payable
to the commissioner when the gambling tax return is required to be filed. Distributors must
file their monthly sales figures with the commissioner on a form prescribed by the
commissioner. Returns covering the taxes imposed under this section must be filed with
the commissioner on or before the 20th day of the month following the close of the previous
calendar month. deleted text begin The commissioner may require that the returns be filed via magnetic media
or electronic data transfer.deleted text end new text begin The commissioner shall prescribe the content, format, and manner
of returns or other documents pursuant to section 270C.30. new text end The proceeds, along with the
revenue received from all license fees and other fees under sections 349.11 to 349.191,
349.211, and 349.213, must be paid to the commissioner of management and budget for
deposit in the general fund.
(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the
distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by
the organization is exempt from taxes imposed by chapter 297A and is exempt from all
local taxes and license fees except a fee authorized under section 349.16, subdivision 8.
(c) One-half of one percent of the revenue deposited in the general fund under paragraph
(a), is appropriated to the commissioner of human services for the compulsive gambling
treatment program established under section 245.98. One-half of one percent of the revenue
deposited in the general fund under paragraph (a), is appropriated to the commissioner of
human services for a grant to the state affiliate recognized by the National Council on
Problem Gambling to increase public awareness of problem gambling, education and training
for individuals and organizations providing effective treatment services to problem gamblers
and their families, and research relating to problem gambling. Money appropriated by this
paragraph must supplement and must not replace existing state funding for these programs.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 41.
Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read:
Subdivision 1.
Reports of sales.
A manufacturer who sells gambling product for use or
resale in this state, or for receipt by a person or entity in this state, shall file with the
commissioner, on a form prescribed by the commissioner, a report of gambling product
sold to any person in the state, including the established governing body of an Indian tribe
recognized by the United States Department of the Interior. The report must be filed monthly
on or before the 20th day of the month succeeding the month in which the sale was made.
deleted text begin The commissioner may require that the report be submitted via magnetic media or electronic
data transfer.deleted text end new text begin The commissioner shall prescribe the content, format, and manner of returns
or other documents pursuant to section 270C.30.new text end The commissioner may inspect the premises,
books, records, and inventory of a manufacturer without notice during the normal business
hours of the manufacturer. A person violating this section is guilty of a misdemeanor.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 42.
Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read:
Subd. 4.
Reports.
A distributor shall report monthly to the commissioner, on a form the
commissioner prescribes, its sales of each type of gambling product. This report must be
filed monthly on or before the 20th day of the month succeeding the month in which the
sale was made. deleted text begin The commissioner may require that a distributor submit the monthly report
and invoices required in this subdivision via magnetic media or electronic data transfer.deleted text end new text begin
The commissioner shall prescribe the content, format, and manner of returns or other
documents pursuant to section 270C.30.
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. 43.
Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read:
Subdivision 1.
Reports.
An organization must file with the commissioner, on a form
prescribed by the commissioner, a report showing all gambling activity conducted by that
organization for each month. Gambling activity includes all gross receipts, prizes, all
gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
purpose and board-approved expenditures. The report must be filed with the commissioner
on or before the 20th day of the month following the month in which the gambling activity
takes place. deleted text begin The commissioner may require that the reports be filed via magnetic media or
electronic data transfer.deleted text end new text begin The commissioner shall prescribe the content, format, and manner
of returns or other documents pursuant to section 270C.30.
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. 44.
Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:
Subdivision 1.
Monthly return; cigarette distributor.
On or before the 18th day of
each calendar month, a distributor with a place of business in this state shall file a return
with the commissioner showing the quantity of cigarettes manufactured or brought in from
outside the state or purchased during the preceding calendar month and the quantity of
cigarettes sold or otherwise disposed of in this state and outside this state during that month.
A licensed distributor outside this state shall in like manner file a return showing the quantity
of cigarettes shipped or transported into this state during the preceding calendar month.
deleted text begin Returns must be made in the form and manner prescribed by deleted text end The commissioner new text begin shall
prescribe the content, format, and manner of returns pursuant to section 270C.30, new text end and new text begin the
returns new text end must contain any other information required by the commissioner. The return must
be accompanied by a remittance for the full unpaid tax liability shown by it. For distributors
subject to the accelerated tax payment requirements in subdivision 10, the return for the
May liability is due two business days before June 30th of the year and the return for the
June liability is due on or before August 18th of the year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 45.
Minnesota Statutes 2016, section 297F.23, is amended to read:
297F.23 JUDICIAL REVIEW.
In lieu of an administrative appeal under section 270C.35, a person aggrieved by an
order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
60 days from the new text begin notice new text end date of deleted text begin the notice ofdeleted text end the order, appeal to the Tax Court in the manner
provided under section 271.06.new text begin For purposes of this section, the term "notice date" means
the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for orders dated after December 31,
2017.
new text end
Sec. 46.
Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read:
Subdivision 1.
Monthly returns; manufacturers, wholesalers, brewers, or importers.
On or before the 18th day of each calendar month following the month in which a licensed
manufacturer or wholesaler first sells wine and distilled spirits within the state, or a brewer
or importer first sells or imports fermented malt beverages, or a wholesaler knowingly
acquires title to or possession of untaxed fermented malt beverages, the licensed
manufacturer, wholesaler, brewer, or importer liable for the excise tax must file a return
with the commissioner, and in addition must keep records and render reports as required
by the commissioner. deleted text begin Returns must be made in a form and manner prescribed by the
commissioner, anddeleted text end new text begin The commissioner shall prescribe the content, format, and manner of
returns pursuant to section 270C.30. The returnsnew text end must contain any other information required
by the commissioner. Returns must be accompanied by a remittance for the full unpaid tax
liability. Returns must be filed regardless of whether a tax is due.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 47.
Minnesota Statutes 2016, section 297G.22, is amended to read:
297G.22 JUDICIAL REVIEW.
In lieu of an administrative appeal under this chapter, a person aggrieved by an order of
the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days
from deleted text begin the date ofdeleted text end the notice new text begin date new text end of the order, appeal to the Tax Court in the manner provided
under section 271.06.new text begin For purposes of this section, the term "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or interest.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for orders dated after December 31,
2017.
new text end
Sec. 48.
Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision
to read:
new text begin Subd. 11. new text end
new text begin Format. new text end
new text begin
The commissioner shall prescribe the content, format, and manner
of returns or other documents pursuant to section 270C.30.
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. 49.
Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read:
Subd. 2.
Remedies.
(a) If the taxpayer is notified that the refund claim is denied in whole
or in part, the taxpayer may contest the denial by:
(1) filing an administrative appeal with the commissioner under section 270C.35;
(2) filing an appeal in Tax Court within 60 days of the new text begin notice new text end date of the deleted text begin notice of deleted text end denial;
or
(3) filing an action in the district court to recover the refund.
(b) An action in the district court must be brought within 18 months deleted text begin followingdeleted text end new text begin ofnew text end the
new text begin notice new text end date of the deleted text begin notice ofdeleted text end denial.new text begin For purposes of this section, "notice date" is defined in
section 270C.35, subdivision 3.new text end An action for refund of tax or surcharge must be brought
in the district court of the district in which lies the taxpayer's principal place of business or
in the District Court for Ramsey County. If a taxpayer files a claim for refund and the
commissioner has not issued a denial of the claim, the taxpayer may bring an action in the
district court or the Tax Court at any time after the expiration of six months from the time
the claim was filed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims for refund denied after
December 31, 2017.
new text end
Sec. 50.
Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read:
Subd. 5.
Waiver authority.
(a) The commissioner may waive all or part of a repayment
required under subdivision 1, if the commissioner, in consultation with the commissioner
of employment and economic development and appropriate officials from the local
government units in which the qualified business is located, determines that requiring
repayment of the tax is not in the best interest of the state or the local government units and
the business ceased operating as a result of circumstances beyond its control including, but
not limited to:
(1) a natural disaster;
(2) unforeseen industry trends; or
(3) loss of a major supplier or customer.
(b)(1) The commissioner shall waive repayment required under subdivision 1a if the
commissioner has waived repayment by the operating business under subdivision 1, unless
the person that received benefits without having to operate a business in the zone was a
contributing factor in the qualified business becoming subject to repayment under subdivision
1;
(2) the commissioner shall waive the repayment required under subdivision 1a, even if
the repayment has not been waived for the operating business if:
(i) the person that received benefits without having to operate a business in the zone and
the business that operated in the zone are not related parties as defined in section 267(b) of
the Internal Revenue Code of 1986, as amended through December 31, 2007; and
(ii) actions of the person were not a contributing factor in the qualified business becoming
subject to repayment under subdivision 1.
(c) Requests for waiver must be made no later than 60 days after the earlier of the notice
date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement
issued under subdivision 4, paragraph (c).new text begin For purposes of this section, the term "notice
date" means the notice date designated by the commissioner on the order.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for orders of the commissioner of revenue
dated after December 31, 2017.
new text end
Sec. 51. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2016, section 290C.06,
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: 17-1140
272.02 EXEMPT PROPERTY.
Subd. 23.
Agricultural containment facilities.
Containment tanks, cache basins, and that portion of the structure needed for the containment facility used to confine agricultural chemicals as defined in section 18D.01, subdivision 3, as required by the commissioner of agriculture under chapter 18B or 18C, are exempt.
281.22 COUNTY AUDITOR TO GIVE NOTICE.
In case any parcel of land bid in for the state at any tax judgment sale heretofore held has not been sold or assigned to an actual purchaser by one year before the expiration of the stated period of redemption of such parcel, it shall be the duty of the county auditor thereupon forthwith to give notice of expiration of the time for redemption of such parcel, as herein provided. Such notice shall be given and all other things done with respect to all such parcels, as provided by section 281.23, except that the notice shall state that the time for redemption will expire one year after service of notice and the filing of proof thereof, instead of 60 days. Otherwise, all the provisions of section 281.23 shall apply to and govern the corresponding matters under this section.
The time for redemption of any parcel of land as to which notice of expiration has been given, as provided in this section, shall expire one year after the giving of such notice and the filing of proof thereof in the office of the county auditor, unless such parcel shall theretofore be assigned to an actual purchaser, as herein provided.
290.067 DEPENDENT CARE CREDIT.
Subd. 2.
Limitations.
The credit for expenses incurred for the care of each dependent shall not exceed $720 in any taxable year, and the total credit for all dependents of a claimant shall not exceed $1,440 in a taxable year. The maximum total credit shall be reduced according to the amount of the income of the claimant and a spouse, if any, as follows:
income up to $18,040, $720 maximum for one dependent, $1,440 for all dependents;
income over $18,040, the maximum credit for one dependent shall be reduced by $18 for every $350 of additional income, $36 for all dependents.
The commissioner shall construct and make available to taxpayers tables showing the amount of the credit at various levels of income and expenses. The tables shall follow the schedule contained in this subdivision, except that the commissioner may graduate the transitions between expenses and income brackets.
Subd. 2a.
Income.
(a) For purposes of this section, "income" means the sum of the following:
(1) federal adjusted gross income as defined in section 62 of the Internal Revenue Code; and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a solvent individual excluded from gross income under section 108(g) of the Internal Revenue Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received under the federal Social Security Act, Supplemental Security Income, and veterans benefits), which was not exclusively funded by the claimant or spouse, or which was funded exclusively by the claimant or spouse and which funding payments were excluded from federal adjusted gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick pay as a result of accident, sickness, or other disability, whether funded through insurance or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including a qualified voluntary employee contribution; simplified employee pension plan; self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal Revenue Code;
(xii) nontaxable scholarship or fellowship grants;
(xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code;
(xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue Code;
(xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue Code; and
(xvi) the amount deducted for certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) of the Internal Revenue Code.
In the case of an individual who files an income tax return on a fiscal year basis, the term "federal adjusted gross income" means federal adjusted gross income reflected in the fiscal year ending in the next calendar year. Federal adjusted gross income may not be reduced by the amount of a net operating loss carryback or carryforward or a capital loss carryback or carryforward allowed for the year.
(b) "Income" does not include:
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(2) amounts of any pension or annuity that were exclusively funded by the claimant or spouse if the funding payments were not excluded from federal adjusted gross income in the years when the payments were made;
(3) surplus food or other relief in kind supplied by a governmental agency;
(4) relief granted under chapter 290A;
(5) child support payments received under a temporary or final decree of dissolution or legal separation; and
(6) restitution payments received by eligible individuals and excludable interest as defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, Public Law 107-16.
290C.02 DEFINITIONS.
Subd. 5.
Current use value.
"Current use value" means the statewide average annual income per acre, multiplied by 90 percent and divided by the capitalization rate determined under subdivision 9. The statewide net annual income shall be a weighted average based on the most recent data as of July 1 of the computation year on stumpage prices and annual tree growth rates and acreage by cover type provided by the Department of Natural Resources and the United States Department of Agriculture Forest Service North Central Research Station.
Subd. 9.
Capitalization rate.
By July 1 of each year, the commissioner shall determine a statewide capitalization rate for use under this chapter. The rate shall be the average annual effective interest rate for St. Paul on new loans under the Farm Credit Bank system calculated under section 2032A(e)(7)(A) of the Internal Revenue Code.
290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE; MANAGED FOREST LAND.
The commissioner shall annually calculate a statewide average estimated market value per acre for class 2c managed forest land under section 273.13, subdivision 23.
297F.05 RATES OF TAX; PERSONAL DEBT.
Subd. 1a.
Annual indexing.
(a) Each year the commissioner shall adjust the tax rates under subdivision 1, including any adjustment made in prior years under this subdivision, by multiplying the mill rates for the current calendar year by an adjustment factor and rounding the result to the nearest mill. The adjustment factor equals the in-lieu sales tax rate that applies to the following calendar year divided by the in-lieu sales tax rate for the current calendar year. For purposes of this subdivision, "in-lieu sales tax rate" means the tax rate established under section 297F.25, subdivision 1. For purposes of the calculations under this subdivision to be made in any year in which an increase in the federal or state excise tax on cigarettes is implemented, the commissioner shall exclude from the calculated average price for the current year an amount equal to any increase in the state or federal excise tax rate.
(b) The commissioner shall publish the resulting rate by November 1 and the rate applies to sales made on or after January 1 of the following year.
(c) The determination of the commissioner under this subdivision is not a rule and is not subject to the Administrative Procedure Act in chapter 14.
477A.20 DEBT SERVICE AID; LEWIS AND CLARK JOINT POWERS BOARD.
(a) The Lewis and Clark Joint Powers Board is eligible to receive an aid distribution under this section equal to (1) the principal and interest payable in the succeeding calendar year for bonds issued under section 469.194 minus the sum of (2) the combined adjusted net tax capacity of Rock County and Nobles County for the assessment year prior to the aid payable year multiplied by 1.5 percent and (3) 50 percent of any federal aid received to fund the project in the calendar year. The board shall certify to the commissioner of revenue any federal aid allocated to the project for the calendar year and the principal and interest due in the succeeding calendar year by June 1 of the aid payable year. The commissioner of revenue shall calculate the aid payable under this section and certify the amount payable before July 1 of the aid distribution year. The commissioner shall pay the aid under this section to the board at the times specified for payments of local government aid in section 477A.015. An amount sufficient to pay the state aid authorized under this section is annually appropriated to the commissioner from the general fund.
(b) The board must allocate the aid to the municipalities issuing bonds under section 469.194 in proportion to their principal and interest payments.
(c) If the deduction under paragraph (a), clause (3), eliminates the aid payment under this section in a calendar year, then the excess of the deduction must be carried over and used to reduce the principal and interest in the succeeding year or years used to calculate aid under paragraph (a).
(d) If federal grants and aid received for the project, not deducted under paragraph (a), clause (3), exceed the total debt service payments for bonds issued under section 469.194, other than payments made with state aid under this section, the joint powers board must repay any excess to the commissioner of revenue for deposit in the general fund. The repayment may not exceed the sum of state aid payments under this section and any other grants made by the state for the project.
(e) This section expires at the earlier of January 1, 2039, or when the bonds authorized under section 469.194 have been paid or defeased.
Repealed Minnesota Rule: 17-1140
8092.1400 ANNUAL RETURNS.
Subpart 1.
General rule.
If an employer deducts and withholds an amount required by Minnesota Statutes, chapter 290, for a base year and the amount required is $500 or less, the employer, for the qualifying year, may elect to file an annual return and make an annual payment of the amount required to be deducted and withheld in that calendar year and is thereafter relieved from filing quarterly returns and making quarterly payments. The annual return and payment are due on or before February 28 of the calendar year following the calendar year the amounts were deducted and withheld. The annual return will serve as the reconciliation required in Minnesota Statutes, section 289A.09, subdivision 2, paragraph (d), for those employers who have elected to file an annual return. The Department of Revenue, applying the criteria of this part, will annually determine which employers are eligible to file an annual return and notify those employers who qualify. Employers who have not filed all withholding tax returns required for the base year are not eligible to file an annual return. Only those employers so notified by the Department of Revenue are eligible to elect to file an annual return. At the time of notification, eligible employers may still elect to file returns and make deposits quarterly. Employers who make such election are required to make all returns and deposits required by Minnesota Statutes, chapter 289A, and will be subject to all applicable penalties.
Subp. 2.
Base year.
"Base year" means the most recent period of four consecutive quarters for which the Department of Revenue has compiled data on all employers withholding tax for that period. The first base year is the four-consecutive quarter period beginning January 1990 and ending December 1990.
Subp. 3.
Qualifying year.
"Qualifying year" means the calendar year for which the Department of Revenue notifies the employer that it is eligible to file an annual return. The first qualifying year is the 1992 calendar year.
Subp. 4.
Accelerated deposits.
If, at the end of any calendar month other than the last month of the calendar year, the aggregate amount of undeposited withholding tax withheld by an employer who has elected to file an annual return exceeds $500, the employer must deposit the aggregate amount with the Department of Revenue within 30 days after the close of the calendar month.
Notwithstanding any other provision of this part, employers are subject to the eighth-monthly period deposit requirements of Minnesota Statutes, section 289A.20.
In the event an employer who has elected to file an annual return pursuant to this part permanently ceases to pay wages for which withholding of tax is required, the employer must file a final return and deposit any undeposited tax on or before the last day of the month following the month in which the discontinuance of such activity occurred.
Subp. 5.
Maximum withholding amount.
The commissioner of revenue shall annually recalculate the maximum withholding amount for annual filing, using the percentage calculated pursuant to Minnesota Statutes, section 290.06, subdivision 2d, paragraph (b). If the maximum withholding amount so calculated is more than $100 above the maximum withholding amount for annual filing then in effect, the maximum withholding amount for annual filing must be increased by $100. If the maximum withholding amount so calculated is less than $100 above the maximum withholding amount then in effect, there shall be no change in the maximum withholding amount then in effect. When the maximum withholding amount is adjusted by the commissioner under this subpart, the maximum withholding amounts referred to in subparts 1 and 4 must be adjusted by the same amount by the commissioner.
8092.2000 CONTRACTS WITH STATE; WITHHOLDING; CERTIFICATION.
Minnesota Statutes, section 270C.66 provides that no department of the state of Minnesota nor any political or governmental subdivision thereof shall make final settlement with any contractor, under a contract requiring the employment of employees for wages by said contractor, until satisfactory showing is furnished to said department or governmental subdivision that the contractor in question has complied with the withholding provisions of Minnesota Statutes, section 290.92. The statute further provides that a certificate issued by the commissioner of revenue shall satisfy this requirement.
The provisions of the statute are prospective in their effect and apply only to contracts executed after April 7, 1961. To facilitate the obtaining of the certification provided for by Minnesota Statutes, section 270C.66 the commissioner has made available form IC134. This form is in two parts, the first section thereof is in the form of an affidavit to be executed by a prime contractor or subcontractor and the second portion thereof is the commissioner's certification. The affidavit portion of the form in any event requires that certain identifying information be set forth by the affiant such as the name of the contractor, the address, withholding identification number, the number of the contract or contracts involved and the name of the department of the state or governmental subdivision with whom the contractor has contracted. The affidavit itself is divided into two parts A and B and it is intended that part A will be executed by both a prime contractor or subcontractor with respect to the employees of such prime contractor or subcontractor.
Part B of said affidavit is to be executed only by a prime contractor who has utilized subcontractors in completing a contract with the state or governmental subdivision thereof. In such a case it is contemplated that each subcontractor will execute part A of the affidavit on form IC134 and obtain from the commissioner certification with respect to such subcontractor's own employees. This copy of form IC134 certified to with respect to the subcontractor's employees will be given to the prime contractor who should keep such affidavit and certification in the prime contractor's own files. When the prime contractor has received such an affidavit and certification from all of the subcontractors on the contract, the prime contractor will then be in a position to execute part B of the affidavit as well as part A and obtain a certification from the commissioner as to the prime contractor's own employees. This form IC134, when both parts A and B have been executed by the prime contractor and certified to by the commissioner, should then be delivered to the department or governmental subdivision in satisfaction of the requirements of Minnesota Statutes, section 270C.66.
The withholding section of the Department of Revenue will process these affidavits and any requests for form IC134 or inquiries relative to their use and application should be directed to this part.
8100.0700 EQUALIZATION.
Subpart 1.
In general.
After the apportionment of value referred to in part 8100.0600has been made, the values of structures valued by the commissioner must be equalized to coincide with the assessment levels of commercial and industrial property within each respective county receiving a share of the apportioned utilities value. This equalization will be accomplished through the use of an assessment/sales ratio.
Subp. 2.
Assessment/sales ratio computation.
A comprehensive assessment/sales ratio study compiled annually by the sales ratio section of the Local Government Services Division of the Department of Revenue will be used in this computation. The portions of this study which will be used for purposes of this part are known as the "County Commercial and Industrial Sales Ratio."
This commercial and industrial (C & I) sales ratio is computed through an analysis of the certificates of real estate value filed by the buyers or sellers of commercial or industrial property within each county. The information contained on these certificates of real estate value is compiled pursuant to requests, standards, and methods set forth by the Minnesota Department of Revenue acting upon recommendations of the Minnesota Legislature. The most recent C & I study available will be used for purposes of this part.
The median C & I sales ratio from this County Commercial and Industrial Sales Ratio study will be used as a basis to estimate the current year C & I median ratio for each county.
The process used to estimate this current year median ratio will be as follows:
The State Board of Equalization abstract of market value will be examined. The current estimated market value of commercial and industrial property within each county will be taken from this abstract. The amount of the value of new commercial and industrial construction ("new" meaning since the last assessment period), as well as the value of commercial and industrial property which has changed classification (for example, commercial to tax exempt property) will also be taken from the abstract. The value of new construction will then be deducted from the estimated market value, resulting in a net estimated current year market value for commercial and industrial property within the county. The value of commercial and industrial property which has changed classification will be deducted from the previous years estimated market value to arrive at a net estimated previous year market value for commercial and industrial property within the county. The net current year value will be compared to the net previous year's estimated market value for commercial and industrial property within the county and the difference between the two values noted. This difference will be divided by the previous year's net estimated market value for commercial and industrial property to find the percentage of increase, or decrease, in assessment level for each year. This percent of change will be applied to the most recent C & I median ratio to estimate the current year's C & I median ratio. An example of this calculation for a typical county is shown below.
| 1990 E.M.V. for Commercial and | ||
| Industrial Property | $12,000,000 | |
| Less: New Construction | 1,500,000 | |
| _ | ||
| 1990 Net E.M.V. for C & I property | $ 10,500,000 | |
| 1989 E.M.V. for C & I property | $10,250,000 | |
| Less: Classification changes | 250,000 | |
| _ | ||
| 1989 Net E.M.V. for C & I property | 10,000,000 | |
| Difference 1989 vs 1990 E.M.V. | 500,000 | |
| Percent of change (500,000/10,000,000) | 5% | |
| 1989 Median C & I ratio | 88% | |
| 1990 Estimated Median C & I ratio (88% x 105%) | 92.4% | |
This same calculation is performed for each Minnesota county. If there are five or fewer valid sales of commercial and industrial property within a county during the study period, these few sales are insufficient to form the basis for a meaningful C & I ratio. Therefore, the median assessment/sales ratio to be used for purposes of the example computation in this subpart will not be the median C & I ratio but will be the weighted median ratio of all property classes within the county for which a sales ratio is available. This weighted median ratio is computed in the same manner using the same procedures and standards as the C & I ratio. In addition, the example computation in this subpart will not be performed using the commercial and industrial estimated market value but will use the estimated market value for all property within the county. All other aspects of the calculations are identical except for this substitution.
| Class of Property | Amount of Value | Percent of Value | Median Ratio | Weighted Median Ratio |
| Residential | $ 20,000,000 | 20% | 86% | 17.00% |
| Agricultural | 55,000,000 | 55% | 95% | 52.25% |
| Seasonal - Recreational | 5,000,000 | 5% | 90% | 4.50% |
| Commercial Industrial | 20,000,000 | 20% | 85% | 17.00% |
| Total | $100,000,000 | 100% | 90.75% |
Subp. 3.
Application of the estimated current year median assessment/sales ratio.
After the estimated current year median ratio has been calculated under subpart 2, it is used to adjust the apportioned estimated market value of utility structures valued by the commissioner. The value of these structures is reduced by the difference between 95 percent and the median ratio as adjusted in subpart 2. This is done by subtracting the current year median ratio, as adjusted, from the 95 percent provided for in Minnesota Statutes, section 278.05, subdivision 4, to arrive at an equalization factor. The estimated market value of utility structures is multiplied by the equalization factor to arrive at the reduction amount. The reduction amount is subtracted from the estimated market value of the utility structures to arrive at the equalized market value of structures. In no instance will any adjustment be made if, after comparing the current year median sales ratio as adjusted to the assessment level of utility structures, the difference between the two is ten percent or less. An example of this adjustment is as follows:
| County A | County B | ||
| Estimated Level of Assessment for Utility Property* | 100.00% | 100.00% | |
| 95 percent provided for in Minnesota Statutes, section 278.05, subdivision 4 | 95.00% | 95.00% | |
| County Commercial/Industrial Sales Ratio | 87.00% | 93.00% | |
| Equalization Factor | 8.00% | 0.00% | |
| Estimated Market Value of Structures | 1,000,000 | 1,000,000 | |
| Reduction in Value | 80,000 | 0 | |
| _ | _ | ||
| Equalized Market Value of Structures | 920,000 | 1,000,000** | |
| ========== | ========== |
*For purposes of this example, assume that utility property is assessed at 100 percent of market value.
**No adjustment is made because the Estimated Current Year Median Sales Ratio is within ten percent of the assessment level of utility property.
All utilities operating within a particular county will be equalized at the same percentage. No adjustment for equalization will be made to machinery or personal property.
These equalized estimated market values of utility structures valued by the commissioner will be forwarded to the county assessor denoting specific utility companies and taxing districts together with personal property and machinery values pursuant to Minnesota Statutes.
8125.1300 REFUNDS AND CREDITS.
Subp. 3.
Gasoline used in aircraft.
Refunds for gasoline, other than aviation gasoline, purchased and used to produce or generate power for propelling aircraft shall be issued only to those claimants who have received approval to use such gasoline from the Federal Aviation Administration as evidenced by a supplemental type certificate.