Engrossments
Introduction		Posted on 04/01/2024
1st Engrossment		Posted on 05/03/2024

A bill for an act
relating to taxation; modifying individual income taxes, corporate franchise taxes,
property taxes, local government aids, minerals taxes, sales and use taxes, gross
receipts taxes, excise taxes, and other tax-related provisions; modifying and
establishing income tax credits and subtractions; expanding the child tax credit
and providing for a minimum credit; providing for nonconformity to certain worker
classification rules; providing for an online political contribution refund system;
modifying property tax exemptions, classifications, and abatements; adjusting
local government aid calculations and payments and forgiving local government
aid penalties; providing for transfers and distributions of proceeds of minerals
taxes; providing for issuance of revenue bonds; modifying sales and use tax
exemptions; providing sales and use tax construction materials exemptions;
repealing the tax on illegal marijuana and controlled substances; providing special
tax increment financing authority; authorizing cities and counties to impose local
sales and use taxes for certain projects; providing for taxpayer assistance and
outreach grants; providing aid for various uses; providing for certain policy and
technical modifications; requiring reports; transferring money; appropriating
money; amending Minnesota Statutes 2022, sections 10A.02, subdivision 11b;
10A.322, subdivision 4; 116U.27, subdivision 2; 123B.53, subdivision 1; 123B.71,
subdivision 8; 270C.21; 270C.33, by adding a subdivision; 270C.445, subdivision
6; 272.01, subdivision 2; 272.02, subdivision 19, by adding subdivisions; 273.13,
subdivisions 22, 23; 273.135, subdivision 2; 273.38; 273.41; 275.065, by adding
a subdivision; 276.04, by adding a subdivision; 276A.01, subdivision 17; 276A.06,
subdivision 8; 289A.08, subdivision 1; 289A.12, subdivision 18; 290.0132, by
adding subdivisions; 290.0686; 295.53, subdivision 4a; 297A.68, subdivision 42;
297A.70, subdivision 19; 297A.75, subdivision 1, as amended; 297A.99,
subdivision 3; 297F.01, subdivisions 10b, 19; 297I.20, subdivision 4; 298.17;
298.2215, subdivision 1; 298.28, subdivision 8; 298.282, subdivision 1; 298.292,
subdivision 2; 375.192, subdivision 2; 446A.086, subdivision 1; 469.104; 469.1812,
by adding a subdivision; 469.1813, subdivisions 1, 6, by adding a subdivision;
473.757, subdivision 10; 474A.091, subdivisions 2, 2a; 609.902, subdivision 4;
Minnesota Statutes 2023 Supplement, sections 123B.71, subdivision 12; 126C.40,
subdivision 6; 273.128, subdivision 1; 290.01, subdivisions 19, 31; 290.0132,
subdivisions 4, 26, 34; 290.0134, subdivision 20; 290.06, subdivision 23; 290.0661,
subdivisions 7, 8, by adding a subdivision; 290.0674, subdivision 1a; 290.0693,
subdivisions 1, 6, 8; 290.0695, subdivisions 1, 2, 3; 290.091, subdivision 2;
290A.03, subdivision 3; 297A.67, subdivision 40; 297A.99, subdivision 1; 297E.06,
subdivision 4; 297H.13, subdivision 2; 298.018, subdivision 1; 298.28, subdivisions
7a, 16; 477A.015; 477A.35, subdivisions 2, 4, 5, 6, by adding a subdivision;
477A.40, subdivisions 4, 5; Laws 2010, chapter 389, article 7, section 22, as
amended; Laws 2014, chapter 308, article 6, section 9, as amended; Laws 2017,
First Special Session chapter 1, article 6, section 22; Laws 2023, chapter 1, sections
22; 28; Laws 2023, chapter 64, article 4, section 27, by adding a subdivision; article
5, section 25, subdivision 1; proposing coding for new law in Minnesota Statutes,
chapters 270C; 290; 297A; repealing Minnesota Statutes 2022, sections 13.4967,
subdivision 5; 297D.02; 297D.03; 297D.05; 297D.09, subdivisions 1, 2; 297D.12;
297D.13; Minnesota Statutes 2023 Supplement, sections 297A.99, subdivision 3a;
297D.01; 297D.04; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivision
1a; 297D.10; 297D.11; 477A.35, subdivision 1; Laws 2023, chapter 64, article 15,
section 24.

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

ARTICLE 1

INCOME AND CORPORATE FRANCHISE TAXES

Section 1.

Minnesota Statutes 2022, section 10A.02, subdivision 11b, is amended to read:

Subd. 11b.

Data privacy related to electronic reporting system.

new text begin (a)new text end The board may
develop and maintain systems to enable treasurers to enter and store electronic records
online for the purpose of complying with this chapter. Data entered into such systems by
treasurers or their authorized agents is not government data under chapter 13 and may not
be accessed or used by the board for any purpose without the treasurer's written consent.
Data from such systems that has been submitted to the board as a filed report is government
data under chapter 13.

new text begin (b) For purposes of administering the refund under section 290.06, subdivision 23, the
board may access or use the following data entered and stored in an electronic reporting
system and share the data with the commissioner of revenue: (1) the amount of the
contribution; (2) the name and address of the contributor; (3) any unique identifier for the
contribution; (4) the name and campaign identification number of the party or candidate
that received the contribution; and (5) the date on which the contribution was received. Data
accessed, used, or maintained by the board under this paragraph are classified as nonpublic
data, as defined in section 13.02, subdivision 9, and private data on individuals, as defined
in section 13.02, subdivision 12.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 2.

Minnesota Statutes 2022, section 10A.322, subdivision 4, is amended to read:

Subd. 4.

Refund deleted text begin receipt formsdeleted text end new text begin receiptsnew text end ; penalty.

(a) The board must make available
to a political party on request and to any candidate for whom an agreement under this section
is effective, deleted text begin a supply ofdeleted text end official refund deleted text begin receipt formsdeleted text end new text begin receipts in an electronic formatnew text end that
state in boldface type that:

(1) a contributor who is given a receipt deleted text begin formdeleted text end is eligible to claim a refund as provided in
section 290.06, subdivision 23; and

(2) if the contribution is to a candidate, that the candidate has signed an agreement to
limit campaign expenditures as provided in this section.

deleted text begin The forms must provide duplicate copies of the receipt to be attached to the contributor's
claim. deleted text end new text begin An official refund receipt must only be issued for a contribution of $10 or more.
Each receipt must be in an electronic format and include a unique receipt validation number
that allows the commissioner of revenue to verify the information on the receipt with the
Campaign Finance Board. A political party or candidate may provide a printed copy of the
electronic receipt to the contributor.
new text end

new text begin (b) At least once a week, the board must provide the commissioner of revenue a receipt
validation report. For each contribution reported to the board during the week, the report
must include:
new text end

new text begin (1) the date and amount of the contribution;
new text end

new text begin (2) the name and address of the contributor;
new text end

new text begin (3) the name and campaign identification number of the party or candidate that received
the contribution; and
new text end

new text begin (4) the receipt validation number assigned to the contribution.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end The willful issuance of an official refund receipt deleted text begin form or a facsimile of onedeleted text end to
any of the candidate's contributors by a candidate or treasurer of a candidate who did not
sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed
by the board.

deleted text begin (c)deleted text end new text begin (d)new text end The willful issuance of an official refund receipt deleted text begin form or a facsimiledeleted text end to an
individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to
a civil penalty of up to $3,000 imposed by the board.

deleted text begin (d)deleted text end new text begin (e)new text end A violation of paragraph deleted text begin (b)deleted text end new text begin (c)new text end or deleted text begin (c)deleted text end new text begin (d)new text end is a misdemeanor.

new text begin (f) A receipt validation report and a receipt validation number prepared pursuant to this
section are classified as nonpublic data, as defined in section 13.02, subdivision 9, and
private data on individuals, as defined in section 13.02, subdivision 12.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contributions made after December
31, 2025.
new text end

Sec. 3.

Minnesota Statutes 2022, section 289A.08, subdivision 1, is amended to read:

Subdivision 1.

Generally; individuals.

(a) A taxpayer must file a return for each taxable
year the taxpayer is required to file a return under section 6012 of the Internal Revenue
Code or meets the requirements under paragraph (d) to file a return, except that:

(1) an individual who is not a Minnesota resident for any part of the year is not required
to file a Minnesota income tax return if the individual's gross income derived from Minnesota
sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the
filing requirements for a single individual who is a full year resident of Minnesota;new text begin and
new text end

(2) an individual who is a Minnesota resident is not required to file a Minnesota income
tax return if the individual's gross income derived from Minnesota sources as determined
under section 290.17, less the subtractions allowed under section 290.0132, subdivisions
12 and 15, is less than the filing requirements for a single individual who is a full-year
resident of Minnesota.

(b) The decedent's final income tax return, and other income tax returns for prior years
where the decedent had gross income in excess of the minimum amount at which an
individual is required to file and did not file, must be filed by the decedent's personal
representative, if any. If there is no personal representative, the return or returns must be
filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property
of the decedent.

(c) The term "gross income," as it is used in this section, has the same meaning given it
in section 290.01, subdivision 20.

(d) The commissioner of revenue must annually determine the gross income levels at
which individuals are required to file a return for each taxable year based on the amounts
allowed as a deduction under section 290.0123.

new text begin (e) Notwithstanding paragraph (a), an individual must file a Minnesota income tax return
for each taxable year that the taxpayer has made an election to receive advance payments
of the child tax credit under section 290.0661, subdivision 8.
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, 2024.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 290.01, subdivision 31, is amended
to read:

Subd. 31.

Internal Revenue Code.

new text begin (a) new text end Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through May 1,
2023. 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.

new text begin (b) For purposes of this chapter, "Internal Revenue Code" does not include section 530
of Public Law 95-600, as amended.
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, 2024.
new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 290.0132, subdivision 4, is amended
to read:

Subd. 4.

Education expenses.

(a) Subject to the limits in paragraph (b), the following
amounts paid to others for each qualifying child are a subtraction:

(1) education-related expenses; plus

(2) tuition and fees paid to attend a school described in section 290.0674, subdivision
1a, paragraph deleted text begin (b)deleted text end new text begin (c)new text end , clause (4), that are not included in education-related expenses; less

(3) any amount used to claim the credit under section 290.0674.

(b) The maximum subtraction allowed under this subdivision is:

(1) $1,625 for each qualifying child in kindergarten through grade 6; and

(2) $2,500 for each qualifying child in grades 7 through 12.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2023.
new text end

Sec. 6.

Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 36. new text end

new text begin Foreign service pension; retirement pay. new text end

new text begin (a) Compensation received from
a pension or other retirement pay from the federal government for service in the foreign
service and established under United States Code, title 22, section 4071, is a subtraction.
new text end

new text begin (b) The subtraction equals the product of:
new text end

new text begin (1) the amount of compensation received under paragraph (a); and
new text end

new text begin (2) the number of years of foreign service divided by the total number of years of civil
service for which the taxpayer receives pension income.
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, 2023.
new text end

Sec. 7.

Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 37. new text end

new text begin Discharges of indebtedness; coerced debt. new text end

new text begin The amount of discharge of
indebtedness awarded to a debtor under section 332.74, 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, 2023.
new text end

Sec. 8.

Minnesota Statutes 2023 Supplement, section 290.06, subdivision 23, is amended
to read:

Subd. 23.

Refund of contributions to political parties and candidates.

(a) A taxpayer
may claim a refund equal to the amount of the taxpayer's contributions made in the calendar
year to candidates and to a political party. The maximumnew text begin totalnew text end refund new text begin per calendar year new text end for
an individual must not exceed $75 and for a married couple, filing jointly, must not exceed
$150. new text begin The commissioner must not issue a refund, whether in one payment or in aggregate,
to a taxpayer that exceeds the maximum refund amounts specified in this subdivision. new text end A
refund of a contribution is allowed only if the taxpayer filesnew text begin :
new text end

new text begin (1)new text end a form required by the commissioner and attaches to the form deleted text begin a copy ofdeleted text end an official
refund receipt deleted text begin formdeleted text end issued by the candidate or party and signed by the candidate, the treasurer
of the candidate's principal campaign committee, or the chair or treasurer of the party unit,
after the contribution was receiveddeleted text begin . The receipt forms must be numbered, and the data on
the receipt that are not public must be made available to the campaign finance and public
disclosure board upon its requestdeleted text end new text begin ; or
new text end

new text begin (2) a claim using the electronic filing system authorized in paragraph (i)new text end .

new text begin The form or claim must include one or more unique receipt validation numbers from receipts
issued pursuant to section 10A.322, subdivision 4.
new text end

new text begin (b) new text end A claim must be filed with the commissioner no sooner than January 1 of the calendar
year in which the contribution was made and no later than April 15 of the calendar year
following the calendar year in which the contribution was made. deleted text begin A taxpayer may file only
one claim per calendar year.deleted text end new text begin A claim must be for a minimum of $10.new text end Amounts paid by the
commissioner after June 15 of the calendar year following the calendar year in which the
contribution was made must include interest at the rate specified in section 270C.405.

deleted text begin (b)deleted text end new text begin (c)new text end No refund is allowed under this subdivision for a contribution to a candidate
unless the candidate:

(1) has signed an agreement to limit campaign expenditures as provided in section
10A.322;

(2) is seeking an office for which voluntary spending limits are specified in section
10A.25; and

(3) has designated a principal campaign committee.

This subdivision does not limit the campaign expenditures of a candidate who does not
sign an agreement but accepts a contribution for which the contributor improperly claims
a refund.

deleted text begin (c)deleted text end new text begin (d)new text end For purposes of this subdivision, "political party" means a major political party
as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion
on the income tax or property tax refund form under section 10A.31, subdivision 3a.

A "major party" or "minor party" includes the aggregate of that party's organization
within each house of the legislature, the state party organization, and the party organization
within congressional districts, counties, legislative districts, municipalities, and precincts.

"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a
candidate for judicial office.

"Contribution" means a gift of money.

deleted text begin (d)deleted text end new text begin (e)new text end The commissioner shall make copies of the form available to the public and
candidates upon request.

deleted text begin (e)deleted text end new text begin (f)new text end The following data collected or maintained by the commissioner under this
subdivision are private: the identities of individuals claiming a refund, the identities of
candidates to whom those individuals have made contributions, and the amount of each
contribution.

deleted text begin (f)deleted text end new text begin (g)new text end The commissioner shall report to the campaign finance and public disclosure
board by each August 1 a summary showing the total number and aggregate amount of
political contribution refunds made on behalf of each candidate and each political party.
These data are public.

deleted text begin (g)deleted text end new text begin (h)new text end The amount necessary to pay claims for the refund provided in this section is
appropriated from the general fund to the commissioner of revenue.

deleted text begin (h) For a taxpayer who files a claim for refund via the Internet or other electronic means,
the commissioner may accept the number on the official receipt as documentation that a
contribution was made rather than the actual receipt as required by paragraph (a)deleted text end new text begin (i) The
commissioner must establish an electronic filing system by which refunds are claimednew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contributions made after December
31, 2025.
new text end

Sec. 9.

Minnesota Statutes 2023 Supplement, section 290.0661, subdivision 7, is amended
to read:

Subd. 7.

Inflation adjustment.

(a) For taxable years beginning after December 31,
2025, the commissioner of revenue must annually adjust for inflation the credit amount in
subdivision 3 as provided in section 270C.22. The adjusted amounts must be rounded to
the nearest $60. The statutory year is taxable year 2025.

(b) For taxable years beginning after December 31, 2023, the commissioner of revenue
must annually adjust for inflation the phaseout thresholds in subdivision 4, as provided in
section 270C.22. The statutory year is taxable year 2023.

new text begin (c) For taxable years beginning after December 31, 2025, and before January 1, 2029,
the commissioner of revenue must annually adjust for inflation the limitations for adjusted
gross income in subdivision 9, paragraph (a), clause (2), as provided in section 270C.22.
The statutory year is taxable year 2025.
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, 2025.
new text end

Sec. 10.

Minnesota Statutes 2023 Supplement, section 290.0661, subdivision 8, is amended
to read:

Subd. 8.

Advance payment of credits.

(a) The commissioner of revenue deleted text begin maydeleted text end new text begin mustnew text end
establish a process to allow taxpayers to elect to receive one or more advance payments of
the credit under this section. The amount of advance payments must be based on the taxpayer
and commissioner's estimate of the amount of credits for which the taxpayer would be
eligible in the taxable year beginning in the calendar year in which the payments were made.
The commissioner must not distribute advance payments to a taxpayer who does not elect
to receive advance payments.

(b) The amount of a taxpayer's credit under this section for the taxable year is reduced
by the amount of advance payments received by the taxpayer in the calendar year during
which the taxable year began. If a taxpayer's advance payments exceeded the credit the
taxpayer was eligible to receive for the taxable year, the taxpayer's liability for tax is increased
by the difference between the amount of advance payments received and the credit amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 11.

Minnesota Statutes 2023 Supplement, section 290.0661, is amended by adding
a subdivision to read:

new text begin Subd. 9. new text end

new text begin Minimum credit. new text end

new text begin (a) For taxable years beginning after December 31, 2024,
and before January 1, 2029, an eligible taxpayer is allowed the greater of the credit allowed
under subdivision 2 or the minimum credit described in this subdivision. A taxpayer is
eligible for the minimum credit under this subdivision if the taxpayer:
new text end

new text begin (1) received an advance payment of the credit under subdivision 8 in the preceding
taxable year; and
new text end

new text begin (2) has adjusted gross income in the current taxable year equal to or less than:
new text end

new text begin (i) $60,100 for married taxpayers filing a joint return with one qualifying child; or
new text end

new text begin (ii) $49,570 for all other filers with one qualifying child.
new text end

new text begin (b) The adjusted gross income limitations in paragraph (a), clause (2), are increased by
$9,000 for each additional qualifying child.
new text end

new text begin (c) The credit allowed under this subdivision is equal to 50 percent of the credit received
under subdivision 2 in the prior taxable year, unless paragraph (d) applies.
new text end

new text begin (d) If a taxpayer is claiming fewer qualifying children in the current taxable year than
in the prior taxable year, the minimum credit allowed under this subdivision is equal to 50
percent of the credit received under this section in the prior taxable year multiplied by a
fraction in which:
new text end

new text begin (1) the numerator is the number of qualifying children in the current taxable year; and
new text end

new text begin (2) the denominator is the number of qualifying children in the prior taxable year.
new text end

new text begin (e) The commissioner must certify the total change in individual income tax liability
from the credit allowed under this subdivision compared to the credit calculated under
subdivision 2 to the commissioner of management and budget by June 30 of each year.
new text end

new text begin (f) A minimum child tax credit account is created in the special revenue fund. Money
in the account is appropriated to the commissioner of management and budget for transfers
to the general fund required in paragraph (h).
new text end

new text begin (g) $9,900,000 in fiscal year 2025 is transferred from the general fund to the minimum
child tax credit account established in paragraph (f). This transfer is for fiscal year 2025
only.
new text end

new text begin (h) In fiscal years 2026 and 2027, the commissioner of management and budget must
transfer an amount equal to the amount certified in paragraph (e) from the minimum child
tax credit account to the general fund beginning in fiscal year 2026. Any amount remaining
in the minimum child tax credit account on June 30, 2027, cancels to the general fund.
new text end

new text begin (i) This subdivision expires January 1, 2029, for taxable years beginning after December
31, 2028.
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, 2024.
new text end

Sec. 12.

Minnesota Statutes 2023 Supplement, section 290.0674, subdivision 1a, is amended
to read:

Subd. 1a.

Definitions.

(a) For purposes of this section, the following terms have the
meanings given them.

new text begin (b) "Career and technical education program" means a program which has received
approval under section 124D.4531 or 136F.32 and that provides individuals with coherent
rigorous content aligned with academic standards and relevant technical knowledge and
skills needed to prepare for further education and careers in current and emerging professions
and provides technical skill proficiency, an industry-recognized credential, and a certificate,
a diploma, or an associate degree.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end "Education-related expenses" means:

(1) qualifying instructional fees or tuition;

(2) expenses for textbooks, including books and other instructional materials and
equipment purchased or leased for use in elementary and secondary schools in teaching
only those subjects legally and commonly taught in public elementary and secondary schools
in this state. "Textbooks" does not include instructional books and materials used in the
teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
tenets, doctrines, or worship, nor does it include books or materials for extracurricular
activities including sporting events, musical or dramatic events, speech activities, driver's
education, or similar programs;

(3) a maximum expense of $200 per family for personal computer hardware, excluding
single purpose processors, and educational software that assists a dependent to improve
knowledge of core curriculum areas or to expand knowledge and skills under the required
academic standards under section 120B.021, subdivision 1, and the elective standard under
section 120B.022, subdivision 1, clause (2), purchased for use in the taxpayer's home and
not used in a trade or business regardless of whether the computer is required by the
dependent's school; deleted text begin and
deleted text end

(4) the amount paid to others for transportation of a qualifying child attending an
elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa,
or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory
attendance laws, which is not operated for profit, and which adheres to the provisions of
the Civil Rights Act of 1964 and chapter 363A.new text begin For a qualifying child participating in a
career and technical education program, education-related expenses includes the amount
paid to others for transportation outside regular school hours that is directly related to the
qualifying child's participation in the program.new text end Amounts under this clause exclude any
expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehiclenew text begin ; and
new text end

new text begin (5) for a qualifying child participating in a career and technical education program,
expenses for:
new text end

new text begin (i) participation in a student organization that is a requirement of the program curriculum;
and
new text end

new text begin (ii) equipment not eligible under clause (2) that is required for participation in the
programnew text end .

deleted text begin (c)deleted text end new text begin (d)new text end "Qualified instructor" means an individual who is not a lineal ancestor or sibling
of the dependent and who is:

(1) an instructor under section 120A.22, subdivision 10, clause (1), (2), (3), (4), or (5);
or

(2) a member of the Minnesota Music Teachers Association.

deleted text begin (d)deleted text end new text begin (e)new text end "Qualifying child" has the meaning given in section 32(c)(3) of the Internal
Revenue Code.

deleted text begin (e)deleted text end new text begin (f)new text end "Qualifying instructional fees or tuition" means fees or tuition for instruction by
a qualified instructor outside the regular school day or school year, and that does not include
the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
tenets, doctrines, or worship, including:

(1) driver's education offered as part of school curriculum, regardless of whether it is
taken from a public or private entity; or

(2) tutoring or summer camps that:

(i) are in grade or age appropriate curricula that supplement curricula and instruction
available during the regular school year;

(ii) assist a dependent to improve knowledge of core curriculum areas; or

(iii) expand knowledge and skills under:

(A) the required academic standards under section 120B.021, subdivision 1; and

(B) the world languages standards under section 120B.022, subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2023.
new text end

Sec. 13.

Minnesota Statutes 2022, section 290.0686, is amended to read:

290.0686 CREDIT FOR ATTAINING MASTER'S DEGREE IN TEACHER'S
LICENSURE FIELD.

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given them.

(b) "Master's degree program" means a graduate-level program at an accredited university
leading to a master of arts or science degree in new text begin either new text end a core content area directly related to
a qualified teacher's licensure fieldnew text begin or in special educationnew text end . new text begin Except for a special education
program, new text end 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 new text begin either new text end a core content area in which the teacher provides
direct classroom instructionnew text begin or in special educationnew text end .

(1) holds a teaching license issued by the licensing division in the Department of
Education on behalf of the Professional Educator Licensing and Standards Board deleted text begin both when
the teacher begins the master's degree program and whendeleted text end new text begin or receives the license within six
months of the datenew text end the teacher completes the master's degree program;

(2) began a master's degree program after June 30, 2017; and

(3) completes the master's degree program during the taxable year.

(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 begin (e) "Special education" means a program of study directly related to licensure in
developmental disabilities, early childhood special education, deaf and hard of hearing
education, blind and visually impaired education, emotional or behavioral disorders, autism
spectrum disorders, or learning disabilities.
new text end

Subd. 2.

Credit allowed.

(a) An individual who is a qualified teacher is allowed a credit
against the tax imposed under this chapter. The credit equals the lesser of $2,500 or the
amount the individual paid for tuition, fees, books, and instructional materials necessary to
completing the master's degree program and for which the individual did not receive
reimbursement from an employer or scholarship.

(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).

(c) A qualified teacher may claim the credit in this sectionnew text begin : (1) in the later of the year
the master's degree program is completed or the year the teaching license is received; and
(2)new text end only one time for each master's degree program completed in a core content areanew text begin or in
special educationnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2023.
new text end

Sec. 14.

new text begin [290.0687] AEROSPACE AND AVIATION CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Aerospace" means relating to vehicles or objects for the purpose of suborbital,
orbital, or space flight, whether for private or public, or civil or defense-related purposes.
new text end

new text begin (c) "Aviation" means relating to vehicles or objects, except parachutes, used for the
purpose of controlled flight through the air, regardless of how the vehicle or object is
propelled or controlled, and regardless of whether the vehicle or object is manned or
unmanned, for private or for public use, or for civil or defense-related purposes, or equipped
with parachute systems.
new text end

new text begin (d) "Aviation and aerospace sector" means a private or public organization engaged in
the manufacture of aviation or aerospace hardware or software, aviation or aerospace
maintenance, aviation or aerospace repair and overhaul, supply of parts to the aviation or
aerospace industry, provision of services and support relating to the aviation or aerospace
industry, research and development of aviation or aerospace technology and systems, or
education and training of aviation or aerospace personnel.
new text end

new text begin (e) "Eligible institution" means any postsecondary institution that participates 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 (f) "Full-time basis" means at least 40 hours per week.
new text end

new text begin (g) "Qualified employee" means any individual who is a resident of Minnesota who
meets the following requirements:
new text end

new text begin (1) was newly employed by a qualified employer on a full-time basis, or first contracted
with a qualified employer on a full-time basis, on or after January 1, 2025; and
new text end

new text begin (2) has been awarded, within one year before or after the beginning date of employment,
an undergraduate degree, graduate degree, technical degree, or certificate in a qualified
program by a qualified institution.
new text end

new text begin (h) "Qualified employer" means a sole proprietorship, general partnership, limited
partnership, limited liability company, corporation, other legally recognized business entity,
fiduciaries, estates, trusts, or public entity whose principal business activity involves the
aviation and aerospace sector and who employs a qualified employee.
new text end

new text begin (i) "Qualified program" means a program at an eligible institution that:
new text end

new text begin (1) has been accredited by the Engineering Accreditation Commission of the Accreditation
Board for Engineering and Technology, the Federal Aviation Administration, or a regional
accrediting body and that awards an undergraduate or graduate degree;
new text end

new text begin (2) is within the meaning of an associate of applied science degree program or career
technical education program that results in the awarding of a degree or certificate that
prepares the graduate for gainful employment with a qualified employer; or
new text end

new text begin (3) results in obtaining a certification or rating which directly relates to the aviation and
aerospace sector and is granted through the Federal Aviation Administration or regional
accredited body.
new text end

new text begin (j) "Tuition" means the amount paid for enrollment, program-specific course fees, and
instruction in a qualified program that includes both amounts paid during participation in
a qualified program and amounts paid for tuition debt upon completion of a qualified
program. Tuition does not include the cost of books, fees that are not program-specific
course fees, or room and board.
new text end

new text begin Subd. 2. new text end

new text begin Credit for tuition paid by qualified employers; limitation. new text end

new text begin (a) A qualified
employer is allowed a credit against the tax imposed under this chapter for tuition reimbursed
each year to a qualified employee in the first through fifth consecutive years of employment.
new text end

new text begin (b) The credit equals 50 percent of the amount of tuition reimbursed by the qualified
employer to each qualified employee in the taxable year, except that the credit must not
exceed 50 percent of the average annual amount paid by a qualified employee for enrollment
and instruction in a qualified program. The credit is limited to the qualified employer's
liability for tax. The credit is not refundable and may not be carried forward.
new text end

new text begin Subd. 3. new text end

new text begin Qualified employer credits; pass through entities. new text end

new text begin Credits allowed to a
partnership, a limited liability company taxed as a partnership, an S corporation, or multiple
owners of property are passed through to the partners, members, shareholders, or owners,
respectively, pro rata to each based on the partner's, member's, shareholder's, or owner's
share of the entity's assets or as specially allocated in the organizational documents or any
other executed agreement, as of the last day of the taxable year.
new text end

new text begin Subd. 4. new text end

new text begin Reports. new text end

new text begin Beginning January 15, 2027, and each year thereafter, the
commissioner must submit a written report to the chairs and ranking minority members of
the legislative committees with jurisdiction over taxes, in compliance with sections 3.195
and 3.197, on the tax credits issued under this section. The report must include information
regarding the cost and effectiveness of the tax credit program. The report may also include
any recommendations for changes to law necessary to implement the credit.
new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin This section expires January 1, 2034, for taxable years beginning
after December 31, 2033.
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, 2024.
new text end

Sec. 15.

Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given.

new text begin (b) "Combined exemption amount" means the sum of:
new text end

new text begin (1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
new text end

new text begin (2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
new text end

new text begin (3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
new text end

new text begin (4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
new text end

new text begin (5) for the taxpayer's fifth dependent, the exemption amount; and
new text end

new text begin (6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or
before the close of the taxable year, the exemption amount.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end "Dependent" means any individual who is considered a dependent under sections
151 and 152 of the Internal Revenue Code.

deleted text begin (c)deleted text end new text begin (d)new text end "Disability" has the meaning given in section 290A.03, subdivision 10.

deleted text begin (d)deleted text end new text begin (e)new text end "Exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b).

deleted text begin (e)deleted text end new text begin (f)new text end "Gross rent" means rent paid for the right of occupancy, at arm's length, of a
homestead, exclusive of charges for any medical services furnished by the landlord as a
part of the rental agreement, whether expressly set out in the rental agreement or not. The
gross rent of a resident of a nursing home or intermediate care facility is $600 per month.
The gross rent of a resident of an adult foster care home is $930 per month. The commissioner
shall annually adjust the amounts in this paragraph as provided in section 270C.22. The
statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's
length and the commissioner determines that the gross rent charged was excessive, the
commissioner may adjust the gross rent to a reasonable amount for purposes of this section.

deleted text begin (f)deleted text end new text begin (g)new text end "Homestead" has the meaning given in section 290A.03, subdivision 6.

deleted text begin (g)deleted text end new text begin (h)new text end "Household" has the meaning given in section 290A.03, subdivision 4.

deleted text begin (h)deleted text end new text begin (i)new text end "Household income" means all income received by all persons of a household in
a taxable year while members of the household, other than income of a dependent.

deleted text begin (i)deleted text end new text begin (j)new text end "Income" means adjusted gross income, minus:

(1) deleted text begin for the taxpayer's first dependent, the exemption amount multiplied by 1.4deleted text end new text begin the
taxpayer's combined exemption amountnew text end ;new text begin and
new text end

(2) deleted text begin for the taxpayer's second dependent, the exemption amount multiplied by 1.3;deleted text end new text begin the
amount of discharge of indebtedness subtracted under section 290.0132, subdivision 37.
new text end

deleted text begin (3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
deleted text end

deleted text begin (4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
deleted text end

deleted text begin (5) for the taxpayer's fifth dependent, the exemption amount; and
deleted text end

deleted text begin (6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or
before the close of the taxable year, the exemption amount.
deleted text end

deleted text begin (j)deleted text end new text begin (k)new text end "Rent constituting property taxes" means 17 percent of the gross rent actually
paid in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any
taxable year by a claimant for the right of occupancy of the claimant's Minnesota homestead
in the taxable year, and which rent constitutes the basis, in the succeeding taxable year of
a claim for a credit under this section by the claimant. If an individual occupies a homestead
with another person or persons not related to the individual as the individual's spouse or as
dependents, and the other person or persons are residing at the homestead under a rental or
lease agreement with the individual, the amount of rent constituting property tax for the
individual equals that portion not covered by the rental agreement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2023.
new text end

Sec. 16.

Minnesota Statutes 2023 Supplement, section 290.0695, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For deleted text begin purposedeleted text end new text begin purposesnew text end of this section, the following terms
have the meanings given them.

new text begin (b) "Credit certificate" means the certificate issued by the commissioner of transportation
under subdivision 3, paragraph (a).
new text end

deleted text begin (b)deleted text end new text begin (c)new text end "Eligible taxpayer" means any railroad that is classified by the United States
Surface Transportation Board as a Class II or Class III railroad.

deleted text begin (c)deleted text end new text begin (d)new text end "Eligible transferee" means any taxpayer subject to tax under this chapter or
chapter 297I.

deleted text begin (d)deleted text end new text begin (e)new text end "Qualified railroad reconstruction or replacement expenditures" means gross
expenditures in the taxable year for maintenance, reconstruction, or replacement of railroad
infrastructure, including track, roadbed, bridges, industrial leads and sidings, and track-related
structures owned or leased by a Class II or Class III railroad in Minnesota as of January 1,
2021. Qualified railroad reconstruction or replacement expenditures also includes new
construction of industrial leads, switches, spurs and sidings and extensions of existing sidings
in Minnesota by a Class II or Class III railroad.

new text begin (f) "Transfer credit certificate" means the certificate issued to a transferee by the
commissioner under subdivision 3, paragraph (d).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end

Sec. 17.

Minnesota Statutes 2023 Supplement, section 290.0695, subdivision 3, is amended
to read:

Subd. 3.

deleted text begin Transferabilitydeleted text end new text begin Credit certificatesnew text end ; written agreement required; deleted text begin credit
certificatedeleted text end new text begin transferabilitynew text end .

(a) new text begin To qualify for a credit under this section, an eligible taxpayer
must apply to the commissioner of transportation for a credit certificate. The application
for the credit certificate must be in the form and manner prescribed by the commissioner
of transportation, in consultation with the commissioner. If the application is approved, the
commissioner of transportation must issue the credit certificate to the eligible taxpayer
within 30 days of receipt of the application. The credit certificate must state, at a minimum,
the number of miles of qualified railroad reconstruction or replacement expenditures in the
taxable year and the total amount of credit calculated under the provisions of subdivision
2, paragraph (a). The commissioner of transportation must provide a copy of the credit
certificate to the commissioner of revenue. The commissioner of transportation must not
issue more than one credit certificate to an eligible taxpayer in a taxable year.
new text end

new text begin (b) By written agreement, new text end an eligible taxpayer may transfer the credit allowed under
this section deleted text begin by written agreementdeleted text end to an eligible transfereedeleted text begin . The amount of the transferred
credit is limited to the unused, remaining portion of the creditdeleted text end new text begin as follows:
new text end

new text begin (1) any amount of the credit allowed that is stated in the credit certificate before any of
the credit is claimed; or
new text end

new text begin (2) the entire amount of the credit carryover in each of the five succeeding taxable yearsnew text end .

deleted text begin (b)deleted text end new text begin (c)new text end The eligible taxpayer and the eligible transferee must jointly file a copy of the
written transfer agreement with the commissioner within 30 days of the transfer. The written
agreement must contain the name, address, and taxpayer identification number of the parties
to the transfer; the taxable year the eligible taxpayer incurred the qualified expenditures;
the amount of credit being transferred; and the taxable year or years for which the transferred
credit may be claimed.

deleted text begin (c)deleted text end new text begin (d)new text end The commissioner must issue a new text begin transfer new text end credit certificate to the transferee within
30 days of the joint filing of a copy of the written transfer agreement with the commissioner.

deleted text begin (d) In the case of an audit or assessment, the transferee is liable for repayment of credits
claimed in excess of the allowed amount.
deleted text end

new text begin (e) An eligible taxpayer must not transfer a credit to an eligible transferee more than
once in a taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end

Sec. 18.

Minnesota Statutes 2023 Supplement, 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)(1)(D) 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 person with a disability;

(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;

(6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16;

(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent
not included in the addition required under clause (6); and

(8) to the extent not included in federal alternative minimum taxable income, the amount
of foreign-derived intangible income deducted under section 250 of the Internal Revenue
Code;

less the sum of the amounts determined under the following:

(i) interest income as defined in section 290.0132, subdivision 2;

(ii) an overpayment of state income tax as provided by section 290.0132, subdivision
3, to the extent included in federal alternative minimum taxable income;

(iii) 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;

(iv) amounts subtracted from federal taxable or adjusted gross income as provided by
section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, 26 to 29, 31, new text begin and new text end 34deleted text begin , and 35deleted text end new text begin to 36new text end ;

(v) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c); and

(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122,
subdivision 7.

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, except alternative minimum
taxable income must be increased by the addition in section 290.0131, subdivision 16.

(b) "Investment interest" means investment interest as defined in section 163(d)(3) of
the Internal Revenue Code.

(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section, section 290.033, 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, 2023.
new text end

Sec. 19. new text begin SHAKOPEE AREA WORKFORCE DEVELOPMENT SCHOLARSHIP
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) "Employer-sponsored applicant" means a student applicant with a local employer
scholarship equal to or greater than 25 percent of the workforce development scholarship.
new text end

new text begin (c) "Local employer" means an employer with a physical location in a county within the
service area of the foundation as listed in paragraph (d).
new text end

new text begin (d) "Shakopee Chamber Foundation" or "foundation" means a nonprofit organization
which provides workforce and charitable services to Scott County as well as the Shakopee
Mdewakanton Sioux Community.
new text end

new text begin Subd. 2. new text end

new text begin Local employer scholarships tax credit. new text end

new text begin (a) A local employer is allowed a
credit against the tax due under Minnesota Statutes, chapter 290, equal to the amount of the
local employer's scholarship awarded to an employer-sponsored applicant that is matching
funds for a Shakopee area workforce development scholarship to the applicant.
new text end

new text begin (b) The credit allowed to a local employer under this subdivision per scholarship awarded
to an employer-sponsored applicant for a taxable year is limited to the total amount of the
local employer's scholarship awarded to an employer-sponsored applicant.
new text end

new text begin (c) If the amount of credit which a claimant is eligible to receive under this subdivision
exceeds the claimant's tax liability under Minnesota Statutes, chapter 290, the commissioner
of revenue shall refund the excess to the claimant.
new text end

new text begin (d) Credits allowed to a partnership, a limited liability company taxed as a partnership,
an S corporation, or multiple owners of property are passed through to the partners, members,
shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or
owner based on their share of the entity's assets or as specially allocated in their
organizational documents or any other executed document, as of the last day of the taxable
year.
new text end

new text begin (e) For nonresidents and part-year residents, the credit must be allocated based on the
percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
(e).
new text end

new text begin (f) Unless specifically provided otherwise by this section, the audit, assessment, refund,
penalty, interest, enforcement, collection remedies, appeal, and administrative provisions
of Minnesota Statutes, chapters 270C and 289A, that are applicable to taxes imposed under
Minnesota Statutes, chapter 290, apply to the tax credit allowed under this section.
new text end

new text begin (g) This subdivision expires for taxable years beginning after December 31, 2028, except
that the expiration of this subdivision does not affect the commissioner of revenue's authority
to audit or power of examination and assessment for credits claimed under this subdivision.
new text end

new text begin (h) An amount sufficient to pay the refunds required by this section is 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 for taxable years beginning after December
31, 2023, and before January 1, 2029, provided that Senate File 5289, article 2, section 9,
or similarly styled legislation is enacted in the 2024 regular legislative session.
new text end

Sec. 20. new text begin APPROPRIATION; POLITICAL CONTRIBUTION REFUND
ELECTRONIC FILING SYSTEM.
new text end

new text begin $147,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of revenue to establish and implement an electronic filing system for political contribution
refund claims. This appropriation is available until June 30, 2026. The base for this
appropriation is $59,000 for fiscal year 2026 and $59,000 for fiscal year 2027.
new text end

Sec. 21. new text begin APPROPRIATION; DEPARTMENT OF TRANSPORTATION.
new text end

new text begin $33,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of transportation to implement the requirements of Minnesota Statutes, section 290.0695.
new text end

Sec. 22. new text begin TRANSFER.
new text end

new text begin On July 1, 2024, $5,000,000 is transferred to the general fund from the tax filing
modernization account in the special revenue fund established in Laws 2023, chapter 64,
article 15, section 24.
new text end

Sec. 23. new text begin REPEALER.
new text end

new text begin Laws 2023, chapter 64, article 15, section 24, 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 July 2, 2024.
new text end

ARTICLE 2

PROPERTY TAXES AND LOCAL GOVERNMENT AIDS

Section 1.

Minnesota Statutes 2022, section 272.01, subdivision 2, is amended to read:

Subd. 2.

Exempt property used by private entity for profit.

(a) When any real or
personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased,
loaned, or otherwise made available and used by a private individual, association, or
corporation in connection with a business conducted for profit, there shall be imposed a
tax, for the privilege of so using or possessing such real or personal property, in the same
amount and to the same extent as though the lessee or user was the owner of such property.

(b) The tax imposed by this subdivision shall not apply to:

(1) property leased or used as a concession in or relative to the use in whole or part of
a public park, market, fairgrounds, port authority, economic development authority
established under chapter 469, municipal auditorium, municipal parking facility, municipal
museum, or municipal stadium;

(2) property of an airport owned by a city, town, county, or group thereof which is:

(i) leased to or used by any person or entity including a fixed base operator; and

(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods,
services, or facilities to the airport or general public;

the exception from taxation provided in this clause does not apply to:

(i) property located at an airport owned or operated by the Metropolitan Airports
Commission or by a city of over 50,000 population according to the most recent federal
census or such a city's airport authority; or

(ii) hangars leased by a private individual, association, or corporation in connection with
a business conducted for profit other than an aviation-related business;

(3) property constituting or used as a public pedestrian ramp or concourse in connection
with a public airport;

(4) property constituting or used as a passenger check-in area or ticket sale counter,
boarding area, or luggage claim area in connection with a public airport but not the airports
owned or operated by the Metropolitan Airports Commission or cities of over 50,000
population or an airport authority therein. Real estate owned by a municipality in connection
with the operation of a public airport and leased or used for agricultural purposes is not
exempt;

(5) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under a cooperative farming agreement made pursuant to section
97A.135; deleted text begin or
deleted text end

(6) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under section 272.68, subdivision 4deleted text begin .deleted text end new text begin ; or
new text end

new text begin (7) property owned by a nonprofit conservation organization that is leased, loaned, or
otherwise made available to a private individual, corporation, or association for grazing
activities that further the nonprofit conservation organization's conservation objectives for
the property, as shown in a management or restoration plan.
new text end

(c) Taxes imposed by this subdivision are payable as in the case of personal property
taxes and shall be assessed to the lessees or users of real or personal property in the same
manner as taxes assessed to owners of real or personal property, except that such taxes shall
not become a lien against the property. When due, the taxes shall constitute a debt due from
the lessee or user to the state, township, city, county, and school district for which the taxes
were assessed and shall be collected in the same manner as personal property taxes. If
property subject to the tax imposed by this subdivision is leased or used jointly by two or
more persons, each lessee or user shall be jointly and severally liable for payment of the
tax.

(d) The tax on real property of the federal government, the state or any of its political
subdivisions that is leased, loaned, or otherwise made available to a private individual,
association, or corporation and becomes taxable under this subdivision or other provision
of law must be assessed and collected as a personal property assessment. The taxes do not
become a lien against the real property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2025.
new text end

Sec. 2.

Minnesota Statutes 2022, section 272.02, subdivision 19, is amended to read:

Subd. 19.

Property used to distribute electricity to farmers.

Electric power distribution
deleted text begin lines and their attachments and appurtenancesdeleted text end new text begin systems, not including substations or
transmission or generation equipmentnew text end , that are used primarily for supplying electricity to
farmers at retail, are exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2024 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to
read:

new text begin Subd. 106. new text end

new text begin Certain property owned by an Indian Tribe. new text end

new text begin (a) Property is exempt that:
new text end

new text begin (1) was classified as class 2b under section 273.13, subdivision 24, for taxes payable in
2024;
new text end

new text begin (2) is located within a county with a population greater than 5,580 but less than 5,620
according to the 2020 federal census;
new text end

new text begin (3) is located in an unorganized territory with a population less than 800 according to
the 2020 federal census; and
new text end

new text begin (4) was on January 2, 2023, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota.
new text end

new text begin (b) Property that qualifies for exemption under this subdivision is limited to not more
than five parcels.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2025.
new text end

Sec. 4.

Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to
read:

new text begin Subd. 107. new text end

new text begin Certain property owned by an Indian Tribe. new text end

new text begin (a) Property is exempt that:
new text end

new text begin (1) was classified as class 3a under section 273.13, subdivision 24, for taxes payable in
2024;
new text end

new text begin (2) is located in a city of the first class with a population greater than 400,000 as of the
2020 federal census;
new text end

new text begin (3) was on January 1, 2023, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota;
and
new text end

new text begin (4) is used exclusively for Tribal purposes or institutions of purely public charity as
defined in subdivision 7.
new text end

new text begin (b) Property that qualifies for the exemption under this subdivision is limited to one
parcel that does not exceed 40,000 square feet and that was acquired by the Indian Tribe in
July 2019. Property used for single-family housing, market-rate apartments, agriculture, or
forestry does not qualify for this exemption.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2025.
new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 273.128, subdivision 1, is amended
to read:

Subdivision 1.

Requirement.

(a) Low-income rental property classified as class 4d(1)
under section 273.13, subdivision 25, is entitled to valuation under this section if at least
20 percent of the units in the rental housing property meet any of the following qualifications:

(1) the units are subject to a housing assistance payments contract under Section 8 of
the United States Housing Act of 1937, as amended;

(2) the units are rent-restricted and income-restricted units of a qualified low-income
housing project receiving tax credits under section 42(g) of the Internal Revenue Code;

(3) the units are financed by the Rural Housing Service of the United States Department
of Agriculture and receive payments under the rental assistance program pursuant to section
521(a) of the Housing Act of 1949, as amended; or

(4) the units are subject to rent and income restrictions under the terms of financial
assistance provided to the rental housing property by the federal government or the state of
Minnesota, or a local unit of government, as evidenced by a document recorded against the
property.new text begin The restrictions under this clause must require assisted units to be occupied by
residents whose household income at the time of initial occupancy does not exceed 60
percent of the greater of area or state median income, adjusted for family size, as determined
by the United States Department of Housing and Urban Development. The restriction must
also require the rents for assisted units to not exceed 30 percent of 60 percent of the greater
of area or state median income, adjusted for family size, as determined by the United States
Department of Housing and Urban Development.
new text end

deleted text begin The restrictions must require assisted units to be occupied by residents whose household
income at the time of initial occupancy does not exceed 60 percent of the greater of area or
state median income, adjusted for family size, as determined by the United States Department
of Housing and Urban Development. The restriction must also require the rents for assisted
units to not exceed 30 percent of 60 percent of the greater of area or state median income,
adjusted for family size, as determined by the United States Department of Housing and
Urban Development.
deleted text end

(b) The owner of a property certified as class 4d(1) under this section must use the
property tax savings received from the 4d(1) classification for one or more of the following
eligible uses: property maintenance, property security, improvements to the property, rent
stabilization, or increases to the property's replacement reserve account. To maintain the
class 4d(1) classification, the property owner must annually reapply and certify to the
Housing Finance Agency that the property tax savings were used for one or more eligible
uses.

(c) In order to meet the requirements of this section, property which received the 4d(1)
classification in the prior year must demonstrate compliance with paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2025.
new text end

Sec. 6.

Minnesota Statutes 2022, section 273.13, subdivision 23, is amended to read:

Subd. 23.

Class 2.

(a) An agricultural homestead consists of class 2a agricultural land
that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class
2a land under the same ownership. The market value of the house and garage and immediately
surrounding one acre of land has the same classification rates as class 1a or 1b property
under subdivision 22. The value of the remaining land including improvements up to the
first tier valuation limit of agricultural homestead property has a classification rate of 0.5
percent of market value. The remaining property over the first tier has a classification rate
of one percent of market value. For purposes of this subdivision, the "first tier valuation
limit of agricultural homestead property" and "first tier" means the limit certified under
section 273.11, subdivision 23.

(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
are agricultural land and buildings. Class 2a property has a classification rate of one percent
of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
property must also include any property that would otherwise be classified as 2b, but is
interspersed with class 2a property, including but not limited to sloughs, wooded wind
shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
and other similar land that is impractical for the assessor to value separately from the rest
of the property or that is unlikely to be able to be sold separately from the rest of the property.

An assessor may classify the part of a parcel described in this subdivision that is used
for agricultural purposes as class 2a and the remainder in the class appropriate to its use.

(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that
are unplatted real estate, rural in character and not used for agricultural purposes, including
land used for growing trees for timber, lumber, and wood and wood products, that is not
improved with a structure. The presence of a minor, ancillary nonresidential structure as
defined by the commissioner of revenue does not disqualify the property from classification
under this paragraph. Any parcel of 20 acres or more improved with a structure that is not
a minor, ancillary nonresidential structure must be split-classified, and ten acres must be
assigned to the split parcel containing the structure. If a parcel of 20 acres or more is enrolled
in the sustainable forest management incentive program under chapter 290C, the number
of acres assigned to the split parcel improved with a structure that is not a minor, ancillary
nonresidential structure must equal three acres or the number of acres excluded from the
sustainable forest incentive act covenant due to the structure, whichever is greater. Class
2b property has a classification rate of one percent of market value unless it is part of an
agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).

(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
acres statewide per taxpayer that is being managed under a forest management plan that
meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource
management incentive program. It has a classification rate of .65 percent, provided that the
owner of the property must apply to the assessor in order for the property to initially qualify
for the reduced rate and provide the information required by the assessor to verify that the
property qualifies for the reduced rate. If the assessor receives the application and information
before May 1 in an assessment year, the property qualifies beginning with that assessment
year. If the assessor receives the application and information after April 30 in an assessment
year, the property may not qualify until the next assessment year. The commissioner of
natural resources must concur that the land is qualified. The commissioner of natural
resources shall annually provide county assessors verification information on a timely basis.
The presence of a minor, ancillary nonresidential structure as defined by the commissioner
of revenue does not disqualify the property from classification under this paragraph.

(e) Agricultural land as used in this section means:

(1) contiguous acreage of ten acres or more, used during the preceding year for
agricultural purposes; or

(2) contiguous acreage used during the preceding year for an intensive livestock or
poultry confinement operation, provided that land used only for pasturing or grazing does
not qualify under this clause.

"Agricultural purposes" as used in this section means the raising, cultivation, drying, or
storage of agricultural products for sale, or the storage of machinery or equipment used in
support of agricultural production by the same farm entity. For a property to be classified
as agricultural based only on the drying or storage of agricultural products, the products
being dried or stored must have been produced by the same farm entity as the entity operating
the drying or storage facility. "Agricultural purposes" also includes (i) enrollment in a local
conservation program or the Reinvest in Minnesota program under sections 103F.501 to
103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198
or a similar state or federal conservation program if the property was classified as agricultural
(A) under this subdivision for taxes payable in 2003 because of its enrollment in a qualifying
program and the land remains enrolled or (B) in the year prior to its enrollment, or (ii) use
of land, not to exceed three acres, to provide environmental benefits such as buffer strips,
old growth forest restoration or retention, or retention ponds to prevent soil erosion. For
purposes of this section, a "local conservation program" means a program administered by
a town, statutory or home rule charter city, or county, including a watershed district, water
management organization, or soil and water conservation district, in which landowners
voluntarily enroll land and receive incentive payments equal to at least $50 per acre in
exchange for use or other restrictions placed on the land. In order for property to qualify
under the local conservation program provision, a taxpayer must apply to the assessor by
February 1 of the assessment year and must submit the information required by the assessor,
including but not limited to a copy of the program requirements, the specific agreement
between the land owner and the local agency, if applicable, and a map of the conservation
area. Agricultural classification shall not be based upon the market value of any residential
structures on the parcel or contiguous parcels under the same ownership.

"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
of, a set of contiguous tax parcels under that section that are owned by the same person.

(f) Agricultural land under this section also includes:

(1) contiguous acreage that is less than ten acres in size and exclusively used in the
preceding year for raising or cultivating agricultural products; deleted text begin or
deleted text end

(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the
contiguous acreage exclusive of the house, garage, and surrounding one acre of land was
used in the preceding year for one or more of the following three uses:

(i) for an intensive grain drying or storage operation, or for intensive machinery or
equipment storage activities used to support agricultural activities on other parcels of property
operated by the same farming entity;

(ii) as a nursery, provided that only those acres used intensively to produce nursery stock
are considered agricultural land; or

(iii) for intensive market farming; deleted text begin for purposes of this paragraph, "market farming"
means the cultivation of one or more fruits or vegetables or production of animal or other
agricultural products for sale to local markets by the farmer or an organization with which
the farmer is affiliated.deleted text end new text begin or
new text end

new text begin (3) contiguous acreage that contains a residence and is less than 11 acres in size, if the
contiguous acreage exclusive of the house, garage, and surrounding one acre of land was
used in the preceding year for market farming; and:
new text end

new text begin (i) the owner provides the county assessor with federal Schedule F (Form 1040) for the
most recent tax year which reports gross income of at least $5,000; or
new text end

new text begin (ii) if the owner has not filed federal Schedule F (Form 1040) for the most recent tax
year, the owner provides the county assessor with a farm financial plan prepared by a
financial management program approved by the commissioner of agriculture that
demonstrates a plan to earn $5,000 annually in gross income in each of the next two years.
new text end

new text begin For purposes of this paragraph, "market farming" means the cultivation of one or more
fruits or vegetables or production of animal or other agricultural products for sale to local
markets by the farmer or an organization with which the farmer is affiliated, and new text end "contiguous
acreagedeleted text begin ,deleted text end " deleted text begin for purposes of this paragraph,deleted text end means all of a tax parcel as described in section
272.193, or all of a set of contiguous tax parcels under that section that are owned by the
same person.

(g) Land shall be classified as agricultural even if all or a portion of the agricultural use
of that property is the leasing to, or use by another person for agricultural purposes.

Classification under this subdivision is not determinative for qualifying under section
273.111.

(h) The property classification under this section supersedes, for property tax purposes
only, any locally administered agricultural policies or land use restrictions that define
minimum or maximum farm acreage.

(i) The term "agricultural products" as used in this subdivision includes production for
sale of:

(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees,
and apiary products by the owner;

(2) aquacultural products for sale and consumption, as defined under section 17.47, if
the aquaculture occurs on land zoned for agricultural use;

(3) the commercial boarding of horses, which may include related horse training and
riding instruction, if the boarding is done on property that is also used for raising pasture
to graze horses or raising or cultivating other agricultural products as defined in clause (1);

(4) property which is owned and operated by nonprofit organizations used for equestrian
activities, excluding racing;

(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
97A.105, provided that the annual licensing report to the Department of Natural Resources,
which must be submitted annually by March 30 to the assessor, indicates that at least 500
birds were raised or used for breeding stock on the property during the preceding year and
that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a
shooting preserve licensed under section 97A.115;

(6) insects primarily bred to be used as food for animals;

(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold
for timber, lumber, wood, or wood products; and

(8) maple syrup taken from trees grown by a person licensed by the Minnesota
Department of Agriculture under chapter 28A as a food processor.

(j) If a parcel used for agricultural purposes is also used for commercial or industrial
purposes, including but not limited to:

(1) wholesale and retail sales;

(2) processing of raw agricultural products or other goods;

(3) warehousing or storage of processed goods; and

(4) office facilities for the support of the activities enumerated in clauses (1), (2), and
(3), the assessor shall classify the part of the parcel used for agricultural purposes as class
1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use.
The grading, sorting, and packaging of raw agricultural products for first sale is considered
an agricultural purpose. A greenhouse or other building where horticultural or nursery
products are grown that is also used for the conduct of retail sales must be classified as
agricultural if it is primarily used for the growing of horticultural or nursery products from
seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products.
Use of a greenhouse or building only for the display of already grown horticultural or nursery
products does not qualify as an agricultural purpose.

(k) The assessor shall determine and list separately on the records the market value of
the homestead dwelling and the one acre of land on which that dwelling is located. If any
farm buildings or structures are located on this homesteaded acre of land, their market value
shall not be included in this separate determination.

(l) Class 2d airport landing area consists of a landing area or public access area of a
privately owned public use airport. It has a classification rate of one percent of market value.
To qualify for classification under this paragraph, a privately owned public use airport must
be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing
area" means that part of a privately owned public use airport properly cleared, regularly
maintained, and made available to the public for use by aircraft and includes runways,
taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing
area also includes land underlying both the primary surface and the approach surfaces that
comply with all of the following:

(i) the land is properly cleared and regularly maintained for the primary purposes of the
landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities
for servicing, repair, or maintenance of aircraft is not included as a landing area;

(ii) the land is part of the airport property; and

(iii) the land is not used for commercial or residential purposes.

The land contained in a landing area under this paragraph must be described and certified
by the commissioner of transportation. The certification is effective until it is modified, or
until the airport or landing area no longer meets the requirements of this paragraph. For
purposes of this paragraph, "public access area" means property used as an aircraft parking
ramp, apron, or storage hangar, or an arrival and departure building in connection with the
airport.

(m) Class 2e consists of land with a commercial aggregate deposit that is not actively
being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
located in a county that has elected to opt-out of the aggregate preservation program as
provided in section 273.1115, subdivision 6. It has a classification rate of one percent of
market value. To qualify for classification under this paragraph, the property must be at
least ten contiguous acres in size and the owner of the property must record with the county
recorder of the county in which the property is located an affidavit containing:

(1) a legal description of the property;

(2) a disclosure that the property contains a commercial aggregate deposit that is not
actively being mined but is present on the entire parcel enrolled;

(3) documentation that the conditional use under the county or local zoning ordinance
of this property is for mining; and

(4) documentation that a permit has been issued by the local unit of government or the
mining activity is allowed under local ordinance. The disclosure must include a statement
from a registered professional geologist, engineer, or soil scientist delineating the deposit
and certifying that it is a commercial aggregate deposit.

For purposes of this section and section 273.1115, "commercial aggregate deposit"
means a deposit that will yield crushed stone or sand and gravel that is suitable for use as
a construction aggregate; and "actively mined" means the removal of top soil and overburden
in preparation for excavation or excavation of a commercial deposit.

(n) When any portion of the property under this subdivision or subdivision 22 begins to
be actively mined, the owner must file a supplemental affidavit within 60 days from the
day any aggregate is removed stating the number of acres of the property that is actively
being mined. The acres actively being mined must be (1) valued and classified under
subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
resource preservation property tax program under section 273.1115, if the land was enrolled
in that program. Copies of the original affidavit and all supplemental affidavits must be
filed with the county assessor, the local zoning administrator, and the Department of Natural
Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
time a subsequent portion of the property is actively mined, provided that the minimum
acreage change is five acres, even if the actual mining activity constitutes less than five
acres.

(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not
rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in
section 14.386 concerning exempt rules do not apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2025.
new text end

Sec. 7.

Minnesota Statutes 2022, section 273.38, is amended to read:

273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.

The distribution deleted text begin lines and the attachments and appurtenances theretodeleted text end new text begin systems, not
including substations or transmission or generation equipment,new text end of cooperative associations
organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof
and supplemental thereto, and engaged in the electrical heat, light and power business, upon
a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections
273.40 and 273.41.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2024 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2022, section 273.41, is amended to read:

273.41 AMOUNT OF TAX; DISTRIBUTION.

There is hereby imposed upon each such cooperative association on December 31 of
each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
deleted text begin distribution lines and the attachments and appurtenances thereto of such associationsdeleted text end new text begin that
part of the association's distribution system, not including substations or transmission or
generation equipment,new text end located in rural areas. The tax shall be payable on or before March
1 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion
thereof, is not paid within the time herein specified for the payment thereof, there shall be
added thereto a specific penalty equal to ten percent of the amount so remaining unpaid.
Such penalty shall be collected as part of said tax, and the amount of said tax not timely
paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
from the time such tax should have been paid until paid. The commissioner shall deposit
the amount so received in the general fund of the state treasury.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2024 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2023 Supplement, section 290A.03, subdivision 3, is amended
to read:

Subd. 3.

Income.

(a) "Income" means the sum of the following:

(1) federal adjusted gross income as defined in 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, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;

(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;

(xiii) nontaxable scholarship or fellowship grants;

(xiv) alimony received to the extent not included in the recipient's income;

(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;

(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and

(xvii) 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" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall 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 which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;

(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;

(4) surplus food or other relief in kind supplied by a governmental agency;

(5) relief granted under this chapter;

(6) child support payments received under a temporary or final decree of dissolution or
legal separation;

(7) 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;

(8) alimony paid; deleted text begin or
deleted text end

(9) veterans disability compensation paid under title 38 of the United States Codenew text begin ; or
new text end

new text begin (10) to the extent included in federal adjusted gross income, the amount of discharge of
indebtedness awarded to the claimant under section 332.74, subdivision 3new text end .

(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;

(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;

(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;

(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;

(5) for the claimant's fifth dependent, the exemption amount; and

(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
before December 31 of the year for which the taxes were levied, the exemption amount.

(d) For purposes of this subdivision, the following terms have the meanings given:

(1) "exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b), for the taxable year for which the income is reported;

(2) "retirement base amount" means the deductible amount for the taxable year for the
claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
to whether the claimant or spouse claimed a deduction; and

(3) "traditional or Roth style retirement account or plan" means retirement plans under
sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2025 and
thereafter.
new text end

Sec. 10.

Minnesota Statutes 2022, section 469.1812, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Land bank organization. new text end

new text begin "Land bank organization" means an organization
that, at least in part, acquires, holds, or manages vacant, blighted, foreclosed, or tax-forfeited
property for future development, redevelopment, or disposal, and that is either:
new text end

new text begin (1) a nonprofit organization exempt from federal income taxation under section 501(c)(3)
of the Internal Revenue Code whose governing board members are elected or appointed by
the state of Minnesota, any political subdivision of the state of Minnesota, or an agency of
the state of Minnesota or its political subdivisions, or are elected or appointed officials of
the state of Minnesota or any of its political subdivisions; or
new text end

new text begin (2) a limited liability company of which a nonprofit organization described in clause (1)
is the sole member.
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. 11.

Minnesota Statutes 2022, section 469.1813, subdivision 1, is amended to read:

Subdivision 1.

Authority.

The governing body of a political subdivision may grant a
current or prospective abatement, by contract or otherwise, of the taxes imposed by the
political subdivision on a parcel of property, which may include personal property and
machinery, or defer the payments of the taxes and abate the interest and penalty that otherwise
would apply, if:

(1) it expects the benefits to the political subdivision of the proposed abatement agreement
to at least equal the costs to the political subdivision of the proposed agreement or intends
the abatement to phase in a property tax increase, as provided in clause (2)(vii); and

(2) it finds that doing so is in the public interest because it will:

(i) increase or preserve tax base;

(ii) provide employment opportunities in the political subdivision;

(iii) provide or help acquire or construct public facilities;

(iv) help redevelop or renew blighted areas;

(v) help provide access to services for residents of the political subdivision;

(vi) finance or provide public infrastructure;

(vii) phase in a property tax increase on the parcel resulting from an increase of 50
percent or more in one year on the estimated market value of the parcel, other than increase
attributable to improvement of the parcel; deleted text begin or
deleted text end

(viii) stabilize the tax base through equalization of property tax revenues for a specified
period of time with respect to a taxpayer whose real and personal property is subject to
valuation under Minnesota Rules, chapter 8100new text begin ;
new text end

new text begin (ix) provide for the development of affordable housing to households at or below 80
percent of area median income as estimated by the United States Department of Housing
and Urban Development for the political subdivision in which the project is located; or
new text end

new text begin (x) allow the property to be held by a land bank organization for future developmentnew 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 2022, section 469.1813, subdivision 6, is amended to read:

Subd. 6.

Duration limit.

(a) A political subdivision may grant an abatement for a period
no longer than 15 years, except as provided under deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (b)new text begin and (c)new text end . The
abatement period commences in the first year in which the abatement granted is either paid
or retained in accordance with section 469.1815, subdivision 2. The subdivision may specify
in the abatement resolution a shorter duration. If the resolution does not specify a period of
time, the abatement is for eight years. If an abatement has been granted to a parcel of property
and the period of the abatement has expired, the political subdivision that granted the
abatement may not grant another abatement for eight years after the expiration of the first
abatement. This prohibition does not apply to improvements added after and not subject to
the first abatement. Economic abatement agreements for real and personal property subject
to valuation under Minnesota Rules, chapter 8100, are not subject to this prohibition and
may be granted successively.

(b) A political subdivision proposing to abate taxes for a parcel may request, in writing,
that the other political subdivisions in which the parcel is located grant an abatement for
the property. If one of the other political subdivisions declines, in writing, to grant an
abatement or if 90 days pass after receipt of the request to grant an abatement without a
written response from one of the political subdivisions, the duration limit for an abatement
for the parcel by the requesting political subdivision and any other participating political
subdivision is increased to 20 years. If the political subdivision which declined to grant an
abatement later grants an abatement for the parcel, the 20-year duration limit is reduced by
one year for each year that the declining political subdivision grants an abatement for the
parcel during the period of the abatement granted by the requesting political subdivision.
The duration limit may not be reduced below the limit under paragraph (a).

new text begin (c) An abatement under subdivision 1, clause (2), items (ix) and (x), may be granted for
a period no longer than five years. This limit also applies if the resolution does not specify
a period of time.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for abatement resolutions approved after
the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2022, section 469.1813, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Repayment. new text end

new text begin A land bank organization receiving an abatement under
subdivision 1, clause (2), item (ix) or (x), must repay the abatement with interest if the land
for which the abatement was granted is used for a purpose other than the purpose given by
the land bank organization prior to redevelopment, as determined by the governing body
of the political subdivision that granted the abatement. This subdivision applies immediately
after the abatement under this section expires and land is subject to repayment under this
subdivision for the same number of years that the abatement was granted. Interest under
this section is payable at the rate determined in section 270C.40, subdivision 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. 14.

Minnesota Statutes 2023 Supplement, section 477A.015, is amended to read:

477A.015 PAYMENT DATES.

(a) The commissioner of revenue shall make the payments of local government aid to
affected taxing authorities in two installments on July 20 and December 26 annually.

(b) Notwithstanding paragraph (a), for aids payable in 2025 only, the commissioner of
revenue shall make payments of the aid payable under section 477A.013, subdivision 9, in
three installments as follows: (1) deleted text begin 9.402deleted text end new text begin 9.7401new text end percent of the aid shall be paid on March
20, 2025; (2) deleted text begin 40.598deleted text end new text begin 40.2599new text end percent of the aid shall be paid on July 20, 2025; and (3) 50
percent of the aid shall be paid on December 26, 2025.

(c) When the commissioner of public safety determines that a local government has
suffered financial hardship due to a natural disaster, the commissioner of public safety shall
notify the commissioner of revenue, who shall make payments of aids under sections
477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical
after the determination is made but not before July 20.

(d) The commissioner may pay all or part of the payments of aids under sections
477A.011 to 477A.014, which are due on December 26 at any time after August 15 if a
local government requests such payment as being necessary for meeting its cash flow needs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2025.
new text end

Sec. 15.

Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 2, is amended
to read:

Subd. 2.

Definitions.

new text begin (a) new text end For the purposes of this section, the following terms have the
meanings givendeleted text begin :deleted text end new text begin .
new text end

deleted text begin (1)deleted text end new text begin (b)new text end "City distribution factor" means the number of households in a tier I city that are
cost-burdened divided by the total number of households that are cost-burdened in tier I
cities. The number of cost-burdened households shall be determined using the most recent
estimates or experimental estimates provided by the American Community Survey of the
United States Census Bureau as of May 1 of the aid calculation yeardeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (2)deleted text end new text begin (c)new text end "Cost-burdened household" means a household in which gross rent is 30 percent
or more of household income or in which homeownership costs are 30 percent or more of
household incomedeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (3)deleted text end new text begin (d)new text end "County distribution factor" means the number of households in a county that
are cost-burdened divided by the total number of households in metropolitan counties that
are cost-burdened. The number of cost-burdened households shall be determined using the
most recent estimates or experimental estimates provided by the American Community
Survey of the United States Census Bureau as of May 1 of the aid calculation yeardeleted text begin ;deleted text end new text begin .
new text end

new text begin (e) "Locally funded housing expenditures" mean expenditures of the aid recipient,
including expenditures by a public corporation or legal entity created by the aid recipient,
which are:
new text end

new text begin (1) funded from the recipient's general fund, a property tax levy of the recipient or its
housing and redevelopment authority, or unrestricted funds available to the recipient, but
not including tax increments; and
new text end

new text begin (2) expended on one of the following qualifying activities:
new text end

new text begin (i) financial assistance to residents in arrears on rent, mortgage, utilities, or property tax
payments;
new text end

new text begin (ii) support services, case management services, and legal services for residents in arrears
on rent, mortgage, utilities, or property tax payments;
new text end

new text begin (iii) down payment assistance or homeownership education, counseling, and training;
new text end

new text begin (iv) acquisition, construction, rehabilitation, adaptive reuse, improvement, financing,
and infrastructure of residential dwellings;
new text end

new text begin (v) costs of operating emergency shelter, transitional housing, supportive housing, or
publicly owned housing, including costs of providing case management services and support
services; and
new text end

new text begin (vi) rental assistance.
new text end

deleted text begin (4)deleted text end new text begin (f)new text end "Metropolitan area" has the meaning given in section 473.121, subdivision 2deleted text begin ;deleted text end new text begin .
new text end

deleted text begin (5)deleted text end new text begin (g)new text end "Metropolitan county" has the meaning given in section 473.121, subdivision 4deleted text begin ;deleted text end new text begin .
new text end

deleted text begin (6)deleted text end new text begin (h)new text end "Population" has the meaning given in section 477A.011, subdivision 3deleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (7)deleted text end new text begin (i)new text end "Tier I city" means a statutory or home rule charter city that is a city of the first,
second, or third class and is located in a metropolitan county.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024.
new text end

Sec. 16.

Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 4, is amended
to read:

Subd. 4.

Qualifying projects.

(a) Qualifying projects deleted text begin shalldeleted text end include: (1) emergency rental
assistance for households earning less than 80 percent of area median income as determined
by the United States Department of Housing and Urban Development; (2) financial support
to nonprofit affordable housing providers in their mission to provide safe, dignified,
affordable and supportive housing; deleted text begin anddeleted text end (3) projects designed for the purpose of construction,
acquisition, rehabilitation, demolition or removal of existing structures, construction
financing, permanent financing, interest rate reduction, refinancing, and gap financing of
housing to provide affordable housing to households that have incomes which do not exceed,
for homeownership projects, 115 percent of the greater of state or area median income as
determined by the United States Department of Housing and Urban Development, and for
rental housing projects, 80 percent of the greater of state or area median income as determined
by the United States Department of Housing and Urban Development, except that the housing
developed or rehabilitated with funds under this section must be affordable to the local work
forcenew text begin ; (4) financing the operations and management of financially distressed residential
properties; and (5) funding of supportive services or staff of supportive services providers
for supportive housing as defined by section 462A.37, subdivision 1. Financial support to
nonprofit housing providers to finance supportive housing operations may be awarded as
a capitalized reserve or as an award of ongoing fundingnew text end .

deleted text begin Projects shall be prioritizeddeleted text end new text begin (b) Recipients must prioritize projectsnew text end that provide affordable
housing to households that have incomes which do not exceed, for homeownership projects,
80 percent of the greater of state or area median income as determined by the United States
Department of Housing and Urban Development, and for rental housing projects, 50 percent
of the greater of state or area median income as determined by the United States Department
of Housing and Urban Development. Priority may be given to projects that: reduce disparities
in home ownership; reduce housing cost burden, housing instability, or homelessness;
improve the habitability of homes; create accessible housing; or create more energy- or
water-efficient homes.

deleted text begin (b)deleted text end new text begin (c)new text end Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,
rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household
can afford for housing, based on industry standards and practices.

deleted text begin (c)deleted text end new text begin (d)new text end If aid under this section is used for demolition or removal of existing structures,
the cleared land must be used for the construction of housing to be owned or rented by
persons who meet the income limits of paragraph (a).

deleted text begin (d)deleted text end new text begin (e)new text end If an aid recipient uses the aid on new construction or substantial rehabilitation
of a building containing more than four units, the loan recipient must construct, convert, or
otherwise adapt the building to include:

(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
accessible units, as defined by section 1002 of the current State Building Code Accessibility
Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower; and

(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
sensory-accessible units that include:

(A) soundproofing between shared walls for first and second floor units;

(B) no florescent lighting in units and common areas;

(D) low-chemical carpet; and

(E) low-chemical carpet glue in units and common areas.

Nothing in this paragraph relieves a project funded by this section from meeting other
applicable accessibility requirements.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024.
new text end

Sec. 17.

Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 5, is amended
to read:

Subd. 5.

Use of proceeds.

(a) Any funds distributed under this section must be spent on
a qualifying project. Funds are considered spent on a qualifying project if:

(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that
the city or county cannot expend funds on a qualifying project by the deadline imposed by
paragraph (b) due to factors outside the control of the city or county; and

(2) the funds are transferred to a local housing trust fund.

Funds transferred to a local housing trust fund under this paragraph must be spent on a
project or household that meets the affordability requirements of subdivision 4, paragraph
(a).

(b) Funds must be deleted text begin spent by December 31 in the third year following the year after the
aid was receiveddeleted text end new text begin :
new text end

new text begin (1) committed to a qualifying project by December 31 in the third year following the
year after the aid was received; and
new text end

new text begin (2) expended by December 31 in the fourth year following the year after the aid was
receivednew text end .

new text begin (c) An aid recipient may not use aid funds to reimburse itself for prior expenditures.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024.
new text end

Sec. 18.

Minnesota Statutes 2023 Supplement, section 477A.35, is amended by adding a
subdivision to read:

new text begin Subd. 5a. new text end

new text begin Maintenance of effort. new text end

new text begin As a condition of receiving aid under this section, a
recipient must commit in the annual report required under subdivision 6, paragraph (b), to
maintaining its locally funded housing expenditures at a level that is not less than the average
level of such expenditures maintained by the recipient for the three preceding fiscal years.
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. 19.

Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 6, is amended
to read:

Subd. 6.

Administration.

(a) The commissioner of revenue must compute the amount
of aid payable to each tier I city and county under this section. By August 1 of each year,
the commissioner must certify the distribution factors of each tier I city and county to be
used in the following year. The commissioner must pay local affordable housing aid annually
at the times provided in section 477A.015, distributing the amounts available on the
immediately preceding June 1 under the accounts established in section 477A.37, subdivisions
2 and 3.

(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later
than December 1 of each year, to the Minnesota Housing Finance Agency. The report must
include documentation of the location of any unspent funds distributed under this section
and of qualifying projects completed or planned with funds under this section. new text begin In the report,
a recipient must certify its compliance with subdivision 5a, including an accounting of
locally funded housing expenditures in the three prior fiscal years. new text end If a tier I city or county
fails to submit a report, if a tier I city or county fails to spend funds within the timeline
imposed under subdivision 5, paragraph (b), deleted text begin ordeleted text end if a tier I city or county uses funds for a
project that does not qualify under this section, new text begin or if a tier I city or county fails to meet its
maintenance of effort requirement, new text end the Minnesota Housing Finance Agency shall notify the
Department of Revenue and the cities and counties that must repay funds under paragraph
(c) by February 15 of the following year.

(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a
tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or
county received under this section if the city or county:

(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);

(2) spends the funds on anything other than a qualifying project; deleted text begin or
deleted text end

(3) fails to submit a report documenting use of the fundsdeleted text begin .deleted text end new text begin ; or
new text end

new text begin (4) fails to meet the maintenance of effort requirement under subdivision 5a.
new text end

(d) The commissioner of revenue must stop distributing funds to a tier I city or county
thatnew text begin requests in writing that the commissioner stop payment or thatnew text end , in three consecutive
years, the Minnesota Housing Finance Agency has reported, pursuant to paragraph (b), to
have failed to use funds, misused funds, or failed to report on its use of funds.new text begin A request
under this paragraph must be submitted to the commissioner in the form and manner
prescribed by the commissioner on or before May 1 of the aids payable year that a tier I
city or county requests the commissioner to stop payment of aid. Any request received after
May 1 will apply beginning in the next aids payable year.
new text end

(e) The commissioner may resume distributing funds to a tier I city or county to which
the commissioner has stopped payments in the year following the August 1 after the
Minnesota Housing Finance Agency certifies that the city or county has submitted
documentation of plans for a qualifying project.new text begin The commissioner may resume distributing
funds to a tier I city or county to which the commissioner has stopped payments at the
request of the city or county in the year following the August 1 after the Minnesota Housing
Finance Agency certifies that the city or county has submitted documentation of plans for
a qualifying project.
new text end

(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph
(c) must be deposited in the housing development fund. Funds deposited under this paragraph
are appropriated to the commissioner of the Minnesota Housing Finance Agency for use
on the family homeless prevention and assistance program under section 462A.204, the
economic development and housing challenge program under section 462A.33, and the
workforce and affordable homeownership development program under section 462A.38.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2025.
new text end

Sec. 20.

Minnesota Statutes 2023 Supplement, section 477A.40, subdivision 4, is amended
to read:

Subd. 4.

Application.

An eligible Tribal Nation may choose to receive an aid distribution
under this section by submitting an application under this subdivision. An eligible Tribal
Nation which has not received a distribution in a prior aids payable year may elect to begin
participation in the program by submitting an application in the manner and form prescribed
by the commissioner of revenue by January 15 of the aids payable year. In order to receive
a distribution, an eligible Tribal Nation must certify to the commissioner of revenue the
most recent estimate of the total number of enrolled members of the eligible Tribal Nation.
The information must be annually certified by March 1 in the form prescribed by the
commissioner of revenue. The commissioner of revenue must annually calculate and certify
the amount of aid payable to each eligible Tribal Nation deleted text begin on or before August 1deleted text end new text begin by June 1new 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.

Minnesota Statutes 2023 Supplement, section 477A.40, subdivision 5, is amended
to read:

Subd. 5.

Payments.

The commissioner of revenue must pay Tribal Nation aid annually
by deleted text begin December 27deleted text end new text begin July 20new text end of the year the aid is certified.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid paid in 2025 and thereafter.
new text end

Sec. 22.

Laws 2023, chapter 64, article 4, section 27, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Report. new text end

new text begin (a) By January 15, 2025, each: (1) local unit that receives aid in an
amount greater than $10,000; (2) county; and (3) Tribal government must report the following
information to the commissioner of public safety in the form and manner approved by that
commissioner:
new text end

new text begin (i) the amount of aid received; and
new text end

new text begin (ii) the ways in which the aid was used or is intended to be used.
new text end

new text begin (b) By February 15, 2025, the commissioner of public safety must compile the information
received from counties, Tribal governments, or local units pursuant to paragraph (a) and
submit the compiled data in a report to the chairs and ranking minority members of the
legislative committees and divisions with jurisdiction over public safety finance and policy
and taxes and property taxes. The report must comply with the requirements of Minnesota
Statutes, sections 3.195 and 3.197.
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. 23. new text begin 2023 AID PENALTY FORGIVENESS; CITY OF STEWART.
new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Stewart
must receive its aid payment for calendar year 2023 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 the
annual financial reporting form for 2022 from the city by June 1, 2024. The commissioner
of revenue must make a payment of $87,501.50 to the city by June 30, 2024.
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. 24. new text begin 2024 TRIBAL NATION AID.
new text end

new text begin (a) Notwithstanding any law to the contrary, for calendar year 2024 the commissioner
of revenue must pay Tribal Nation aid under Minnesota Statutes, section 477A.40, by June
20, 2024.
new text end

new text begin (b) $35,000,000 in fiscal year 2024 is appropriated from the general fund to the
commissioner of revenue to make payments required 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. 25. new text begin SUPPLEMENTAL 2024 SOIL AND WATER CONSERVATION DISTRICT
AID DISTRIBUTION.
new text end

new text begin (a) Supplemental aid for a soil and water conservation district equals the product of:
new text end

new text begin (1) the aid amount under Minnesota Statutes, section 477A.23, subdivision 2, certified
for the soil and water conservation district for aid payable in 2024;
new text end

new text begin (2) the reciprocal of the total amount of aid certified for all soil and water conservation
districts under Minnesota Statutes, section 477A.23, subdivision 2, certified for aid payable
in 2024; and
new text end

new text begin (3) the total appropriation under this section.
new text end

new text begin (b) The Board of Water and Soil Resources must certify the supplemental aid amounts
under this section to the commissioner of revenue and soil and water conservation districts
before August 1, 2024. The commissioner of revenue must pay the supplemental aid amounts
on December 26, 2024.
new text end

new text begin (c) $2,000,000 is appropriated in fiscal year 2025 from the general fund to the
commissioner of revenue for aid under this section. This is a onetime appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payable in calendar year 2024.
new text end

Sec. 26. new text begin SUPPLEMENTAL 2024 TOWN AID DISTRIBUTION.
new text end

new text begin (a) Supplemental aid for a town equals the product of:
new text end

new text begin (1) the aid amount under Minnesota Statutes, section 477A.013, subdivision 1, certified
for the town for aid payable in 2024;
new text end

new text begin (2) the reciprocal of the total amount of aid certified for all towns under Minnesota
Statutes, section 477A.013, subdivision 1, certified for aid payable in 2024; and
new text end

new text begin (3) the total appropriation under this section.
new text end

new text begin (b) The commissioner of revenue must certify supplemental aid amounts under this
section before August 1, 2024, and must pay the aid on December 26, 2024.
new text end

new text begin (c) $2,000,000 is appropriated in fiscal year 2025 from the general fund to the
commissioner of revenue for aid under this section. This is a onetime appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payable in calendar year 2024.
new text end

Sec. 27. new text begin PROPERTY TAX EXEMPTION; RED LAKE NATION COLLEGE.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 272.02, subdivision 38, paragraph (b),
and any other law to the contrary, property located in the city of Minneapolis acquired by
Red Lake Nation College Without Borders, LLC in either August 2021 or September 2021
is exempt from property taxes payable in 2022 and the portion of property taxes payable in
2021 due after the property was acquired. The city assessor must provide the property owner
with an application for exemption under this section and the property owner must file the
application with the city assessor by August 1, 2024. An amount necessary to make a
payment to the county for the property taxes attributable to the exemption is appropriated
from the general fund to the commissioner of revenue in fiscal year 2025. This is a onetime
appropriation.
new text end

new text begin (b) By August 1, 2024, the auditor of the county in which the property is located must
certify to the commissioner of revenue the amount to be paid by the commissioner of revenue
to the county under paragraph (a). The commissioner of revenue must make this payment
by August 15, 2024.
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 REPEALER.
new text end

new text begin Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 1, 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 beginning with aids payable in 2024.
new text end

ARTICLE 3

MINERALS

Section 1.

Minnesota Statutes 2022, section 123B.53, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible debt service
revenue of a district is defined as follows:

(1) the amount needed to produce between five and six percent in excess of the amount
needed to meet when due the principal and interest payments on the obligations of the district
for eligible projects according to subdivision 2, excluding the amounts listed in paragraph
(b), minus

(2) the amount of debt service excess levy reduction for that school year calculated
according to the procedure established by the commissioner.

(b) The obligations in this paragraph are excluded from eligible debt service revenue:

(1) obligations under section 123B.61;

(2) the part of debt service principal and interest paid from the taconite environmental
protection fund or Douglas J. Johnson economic protection trust, excluding the portion of
taconite payments from the Iron Range deleted text begin school consolidation and cooperatively operated
schooldeleted text end new text begin schools and community developmentnew text end account under section 298.28, subdivision 7a;

(3) obligations for long-term facilities maintenance under section 123B.595;

(4) obligations under section 123B.62; and

(5) obligations equalized under section 123B.535.

(c) For purposes of this section, if a preexisting school district reorganized under sections
123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement of the
preexisting district's bonded indebtedness or capital loans, debt service equalization aid
must be computed separately for each of the preexisting districts.

(d) For purposes of this section, the adjusted net tax capacity determined according to
sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, subdivision 64.

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 2022, section 273.135, subdivision 2, is amended to read:

Subd. 2.

Reduction amount.

The amount of the reduction authorized by subdivision 1
shall be:

(a) In the case of property located within a municipality as defined under section 273.134,
paragraph (a), 66 percent of the tax, provided that the reduction shall not exceed the
maximum amounts specified in paragraph (c).

(b) In the case of property located within the boundaries of a school district which
qualifies as a tax relief area under section 273.134, paragraph (b), but which is outside the
boundaries of a municipality which meets the qualifications prescribed in section 273.134,
paragraph (a), 57 percent of the tax, provided that the reduction shall not exceed the
maximum amounts specified in paragraph (c).

(c) The maximum reduction of the tax is deleted text begin $315.10deleted text end new text begin $515new text end on property described in paragraph
(a) and deleted text begin $289.80 on property described indeleted text end paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2025.
new text end

Sec. 3.

Minnesota Statutes 2022, section 275.065, is amended by adding a subdivision to
read:

new text begin Subd. 3c. new text end

new text begin Notice of proposed taxes; property subject to chapter 276A. new text end

new text begin In the case of
property subject to the areawide tax under section 276A.06, subdivision 7, for both the
current year taxes and the proposed tax amounts, the net tax capacity portion of the taxes
shown for each taxing jurisdiction must be based on the property's total net tax capacity
multiplied by the jurisdiction's actual or proposed net tax capacity tax rate. In addition to
the tax amounts shown for each jurisdiction, the statement must include a line showing the
"fiscal disparities adjustment" equal to the total gross tax payable minus the sum of the tax
amounts shown for the individual taxing jurisdictions. The fiscal disparities adjustment may
be a negative number. If the fiscal disparities adjustment for either the current year taxes
or the proposed tax amount is a negative number, the percentage change must not be shown.
In all other respects the statement must fulfill the requirements of subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with proposed notices for
property taxes payable in 2025.
new text end

Sec. 4.

Minnesota Statutes 2022, section 276.04, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Contents of tax statements; property subject to chapter 276A. new text end

new text begin In the case
of property subject to the areawide tax under section 276A.06, subdivision 7, for both the
current year taxes and the previous year tax amounts, the net tax capacity portion of the tax
shown for each taxing jurisdiction must be based on the property's total net tax capacity
multiplied by the jurisdiction's net tax capacity tax rate. In addition to the tax amounts shown
for each jurisdiction, the statement must include a line showing the "fiscal disparities
adjustment" equal to the total gross tax payable minus the sum of the tax amounts shown
for the individual taxing jurisdictions for each year. The fiscal disparities adjustment may
be a negative number. In all other respects the statement must fulfill the requirements of
subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with proposed notices for
property taxes payable in 2025.
new text end

Sec. 5.

Minnesota Statutes 2022, 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 commissioner of Iron Range resources and
rehabilitation, after consultation with the Iron Range Resources and Rehabilitation Board,
to be used for the purposes of the Iron Range deleted text begin school consolidation and cooperatively operated
schooldeleted text end new text begin schools and community developmentnew text end account under section 298.28, subdivision 7a.

(b) The allocation under paragraph (a) shall only be made after the commissioner of
Iron Range resources and rehabilitation, after consultation with the Iron Range Resources
and Rehabilitation Board, has certified by June 30 that the Iron Range deleted text begin school consolidation
and cooperatively operateddeleted text end new text begin schools and community developmentnew text end account has insufficient
funds to make payments as authorized under section 298.28, subdivision 7a.

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 2022, section 276A.06, subdivision 8, is amended to read:

Subd. 8.

Certification of values; payment.

The administrative auditor shall determine
for each county the difference between the total levy on distribution value pursuant to
subdivision 3, clause (1), including the school fund allocation within the county and the
total tax on contribution value pursuant to subdivision 7, within the county. On or before
May 16 of each year, the administrative auditor shall certify the differences so determined
and the county's portion of the school fund allocation to each county auditor. In addition,
the administrative auditor shall certify to those county auditors for whose county the total
tax on contribution value exceeds the total levy on distribution value the settlement the
county is to make to the other counties of the excess of the total tax on contribution value
over the total levy on distribution value in the county. On or before June 15 and November
15 of each year, each county treasurer in a county having a total tax on contribution value
in excess of the total levy on distribution value shall pay one-half of the excess to the other
counties in accordance with the administrative auditor's certification. On or before June 15
and November 15 of each year, each county treasurer shall pay to the administrative auditor
that county's share of the school fund allocation. On or before December 1 of each year,
the administrative auditor shall pay the school fund allocation to the commissioner of Iron
Range resources and rehabilitation for deposit in the Iron Range deleted text begin school consolidation and
cooperatively operateddeleted text end new text begin schools and community developmentnew text end account.

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 2023 Supplement, section 298.018, subdivision 1, is amended
to read:

Subdivision 1.

Within taconite assistance area.

(a) The proceeds of the tax paid under
sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
taconite assistance area defined in section 273.1341, shall be allocated as follows:

(1) except as provided under paragraph (b), five percent to the city or town within which
the minerals or energy resources are mined or extracted, or within which the concentrate
was produced. If the mining and concentration, or different steps in either process, are
carried on in more than one taxing district, the commissioner shall apportion equitably the
proceeds among the cities and towns by attributing 50 percent of the proceeds of the tax to
the operation of mining or extraction, and the remainder to the concentrating plant and to
the processes of concentration, and with respect to each thereof giving due consideration
to the relative extent of the respective operations performed in each taxing district;

(2) ten percent to the taconite municipal aid account to be distributed as provided in
section 298.282, subdivisions 1 and 2, on the dates provided under this section;

(3) ten percent to the school district within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one school
district, distribution among the school districts must be based on the apportionment formula
prescribed in clause (1);

(4) 20 percent to a group of school districts comprised of those school districts wherein
the mineral or energy resource was mined or extracted or in which there is a qualifying
municipality as defined by section 273.134, paragraph (b), in direct proportion to school
district indexes as follows: for each school district, its pupil units determined under section
126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted
net tax capacity per pupil unit for school districts receiving aid under this clause as calculated
pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution
to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that
portion of the distribution which its index bears to the sum of the indices for all school
districts that receive the distributions;

(5) ten percent to the county within which the minerals or energy resources are mined
or extracted, or within which the concentrate was produced. If the mining and concentration,
or different steps in either process, are carried on in more than one county, distribution
among the counties must be based on the apportionment formula prescribed in clause (1),
provided that any county receiving distributions under this clause shall pay one percent of
its proceeds to the Range Association of Municipalities and Schools;

(6) five percent to St. Louis County acting as the counties' fiscal agent to be distributed
as provided in sections 273.134 to 273.136;

(7) 20 percent to the commissioner of Iron Range resources and rehabilitation for the
purposes of section 298.22;

(8) three percent to the Douglas J. Johnson economic protection trust fund;

(9) seven percent to the taconite environmental protection fund; and

(10) ten percent to the commissioner of Iron Range resources and rehabilitation for
capital improvements to Giants Ridge Recreation Area.

(b) If the materials or energy resources are mined, extracted, or concentrated in School
District No. 2711, Mesabi East, then the amount under paragraph (a), clause (1), must instead
be distributed pursuant to this paragraph. The cities of Aurora, Babbitt, Ely, and Hoyt Lakes
must each receive 20 percent of the amount. The city of Biwabik and Embarrass Township
must each receive ten percent of the amount.

(c) For the first five years that tax paid under section 298.015, subdivisions 1 and 2, is
distributed under this subdivision, ten percent of the total proceeds distributed in each year
must first be distributed pursuant to this paragraph. The remaining 90 percent of the total
proceeds distributed in each of those years must be distributed as outlined in paragraph (a).
Of the amount available under this paragraph, the cities of Aurora, Babbitt, Ely, and Hoyt
Lakes must each receive 20 percent. Of the amount available under this paragraph, the city
of Biwabik and Embarrass Township must each receive ten percent.new text begin This paragraph applies
only to tax paid by a person engaged in the business of mining within the area described in
section 273.1341, clauses (1) and (2).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2025 distribution.
new text end

Sec. 8.

Minnesota Statutes 2022, section 298.17, is amended to read:

298.17 OCCUPATION TAXES TO BE APPORTIONED.

(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
companies, corporations, and associations, however or for whatever purpose organized,
engaged in the business of mining or producing iron ore or other ores, when collected shall
be apportioned and distributed in accordance with the Constitution of the state of Minnesota,
article X, section 3, in the manner following: 90 percent shall be deposited in the state
treasury and credited to the general fund of which four-ninths shall be used for the support
of elementary and secondary schools; and ten percent of the proceeds of the tax imposed
by this section shall be deposited in the state treasury and credited to the general fund for
the general support of the university.

(b) Of the money apportioned to the general fund by this section: (1) there is annually
appropriated and credited to the mining environmental and regulatory account in the special
revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax
imposed by section 298.24 on each taxable ton produced in the preceding calendar year.
Money in the mining environmental and regulatory account is appropriated annually to the
commissioner of natural resources to fund agency staff to work on environmental issues
and provide regulatory services for ferrous and nonferrous mining operations in this state.
Payment to the mining environmental and regulatory account shall be made by July 1
annually. The commissioner of natural resources shall execute an interagency agreement
with the Pollution Control Agency to assist with the provision of environmental regulatory
services such as monitoring and permitting required for ferrous and nonferrous mining
operations; (2) there is annually appropriated and credited to the Iron Range resources and
rehabilitation account in the special revenue fund an amount equal to that which would have
been generated by a 1.5 cent tax imposed by section 298.24 on each taxable ton produced
in the preceding calendar year, to be expended for the purposes of section 298.22; and (3)
there is annually appropriated and credited to the Iron Range resources and rehabilitation
account in the special revenue fund for transfer to the Iron Range deleted text begin school consolidation and
cooperatively operated schooldeleted text end new text begin schools and community developmentnew text end account under section
298.28, subdivision 7a, an amount equal to that which would have been generated by a six
cent tax imposed by section 298.24 on each taxable ton produced in the preceding calendar
year. Payment to the Iron Range resources and rehabilitation account shall be made by May
15 annually.

(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to
provide environmental development grants to local governments located within any county
in region 3 as defined in governor's executive order number 60, issued on June 12, 1970,
which does not contain a municipality qualifying pursuant to section 273.134, paragraph
(b), or (ii) to provide economic development loans or grants to businesses located within
any such county, provided that the county board or an advisory group appointed by the
county board to provide recommendations on economic development shall make
recommendations to the commissioner of Iron Range resources and rehabilitation regarding
the loans. Payment to the Iron Range resources and rehabilitation account shall be made by
May 15 annually.

(d) Of the money allocated to Koochiching County, one-third must be paid to the
Koochiching County Economic Development Commission.

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 2022, section 298.2215, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

A county may establish a scholarship fund from any
unencumbered revenue received pursuant to section 298.018, 298.28, 298.39, 298.396, or
298.405 or any law imposing a tax upon severed mineral values. Scholarships must be used
at a two-year Minnesota State Colleges and Universities institutionnew text begin , or an accredited skilled
trades program,new text end within the county. The county shall establish procedures for applying for
and distributing the scholarships.

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 2023 Supplement, section 298.28, subdivision 7a, is amended
to read:

Subd. 7a.

Iron Range deleted text begin school consolidation and cooperatively operated schooldeleted text end new text begin schools
and community developmentnew text end account.

(a) The following amounts must be allocated to
the commissioner of Iron Range resources and rehabilitation to be deposited in the Iron
Range deleted text begin school consolidation and cooperatively operated schooldeleted text end new text begin schools and community
developmentnew text end account that is hereby created:

(1) for distributions beginning in 2015, ten 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); and

(3) any other amount as provided by law.

(b) Expenditures from this account may be approved as ongoing annual expenditures
and 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 commissioner of Iron Range resources and rehabilitation after consultation
with 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 the commissioner
of Iron Range resources and rehabilitation after consultation with the Iron Range Resources
and Rehabilitation Board.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2022, section 298.28, subdivision 8, is amended to read:

Subd. 8.

Range Association of Municipalities and Schools.

deleted text begin .30deleted text end new text begin 0.50new text end cent per taxable
ton shall be paid to the Range Association of Municipalities and Schools, for the purpose
of providing an areawide approach to problems which demand coordinated and cooperative
actions and which are common to those areas of northeast Minnesota affected by operations
involved in mining iron ore and taconite and producing concentrate therefrom, and for the
purpose of promoting the general welfare and economic development of the cities, towns,
and school districts within the Iron Range area of northeast Minnesota.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2024 distribution.
new text end

Sec. 12.

Minnesota Statutes 2023 Supplement, section 298.28, subdivision 16, is amended
to read:

Subd. 16.

Transfer.

Of the amount annually distributed to the Douglas J. Johnson
Economic Protection Trust Fund under this section, deleted text begin $3,500,000deleted text end new text begin the following amountsnew text end shall
be transferred to the Iron Range deleted text begin school consolidation and cooperatively operated schooldeleted text end
new text begin schools and community developmentnew text end account under subdivision 7anew text begin : for distribution year
2024, $6,250,000; for distribution year 2025 through distribution year 2029, $6,500,000;
for distribution year 2030 through distribution year 2034, $5,500,000; for distribution year
2035 and distribution year 2036, $5,000,000; and for distribution year 2037 through
distribution year 2041, $3,500,000new text end . Any remaining amount of the amount annually distributed
to the Douglas J. Johnson Economic Protection Trust Fund shall be transferred to the Iron
Range resources and rehabilitation account under subdivision 7. The transfers under this
subdivision must be made within ten days of the August payment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2024 distribution.
new text end

Sec. 13.

Minnesota Statutes 2022, section 298.282, subdivision 1, is amended to read:

Subdivision 1.

Distribution of taconite municipal aid account.

(a) The amount
deposited with the county as provided in section 298.28, subdivision 3, must be distributed
as provided by this section among: (1) the municipalities located within a taconite assistance
area under section 273.1341 that meet the criteria of section 273.1341, clause (1) or (2); (2)
a township that contains a state park consisting primarily of an underground iron ore mine;
(3) a city located within five miles of that state park; and (4) Breitung Township in St. Louis
County, each being referred to in this section as a qualifying municipality. The distribution
to Breitung Township under this subdivision shall be deleted text begin $15,000deleted text end new text begin $25,000new text end annually.

(b) The amount deposited in the state general fund as provided in section 298.018,
subdivision 1, must be distributed in the same manner as provided under paragraph (a),
except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the
dates provided under section 298.018, subdivision 1a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2024 distribution.
new text end

Sec. 14.

Minnesota Statutes 2022, section 298.292, subdivision 2, is amended to read:

Subd. 2.

Use of money.

(a) 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 298.2211new text begin , including bonds authorized
by the legislature to be repaid from the distributions under section 298.28, subdivision 7anew text end ;

(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, after consultation with the advisory board. The net proceeds must be deposited
in the trust fund for the purposes and uses of this section.

(b) Money from the trust fund shall be expended only in deleted text begin or for the benefit ofdeleted text end the taconite
assistance area defined in section 273.1341.

(c) Money devoted to the trust fund under this section shall not be expended, appropriated,
or transferred from the trust fund for any purpose except as provided in this section.

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. new text begin IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER;
BONDS AUTHORIZED IN 2024.
new text end

new text begin Subdivision 1. new text end

new text begin Issuance; purpose. new text end

new text begin (a) Notwithstanding any provision of Minnesota
Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and
rehabilitation shall, in 2024, issue revenue bonds in a principal amount of up to $49,000,000
plus an amount sufficient to pay costs of issuance in one or more series, and thereafter may
issue bonds to refund those bonds. The proceeds of the bonds must be used to pay the costs
of issuance and to make distributions pursuant this section. The commissioner of Iron Range
resources and rehabilitation must distribute these transferred funds as outlined in this section.
In order to receive a distribution, a recipient must submit to the commissioner a plan of how
the distribution will be spent and the commissioner must ensure that the plan matches the
intended use outlined in this section. The plan must be submitted in a form and manner
determined by the commissioner. The uses listed are not subject to review or recommendation
by the Iron Range Resources and Rehabilitation Board. For all distributions equal to or
greater than $1,000,000, a recipient must appear and present and provide a copy of the plan
to the Iron Range Resources and Rehabilitation Board. By December 31, 2025, each recipient
must report to the commissioner how the distribution received under this section was spent.
If a recipient's plan is submitted and approved, the commissioner must distribute the funds
for the uses outlined in subdivision 3. The bonds issued under this section do not constitute
public debt as that term is defined in article XI, section 4 of the Minnesota Constitution,
and as such are not subject to its provisions.
new text end

new text begin (b) If the commissioner of Iron Range resources and rehabilitation determines that
available funds, other than through the issuance of bonds pursuant to subdivision 1, shall
be used to make grants as provided in subdivision 3, the requirements of subdivision 1,
relating to the submission of a plan and report to the commissioner of Iron Range resources
and rehabilitation and the Iron Range Resources and Rehabilitation Board, and subdivision
3, relating to the grant amount and identified purpose, shall apply.
new text end

new text begin (c) Funds under this section are available for four years from the date the bonds are
issued. Any unexpended funds after that date cancel to the taconite environmental fund
under Minnesota Statutes, section 298.28, subdivision 9b.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 298.28,
subdivision 7a, paragraph (b), there is annually appropriated from the distribution of the
taconite production tax revenues under Minnesota Statutes, section 298.28, subdivision 7a,
prior to the calculation of any amount remaining, an amount sufficient to pay when due the
principal and interest on the bonds issued pursuant to subdivision 1.
new text end

new text begin (b) If in any year the amount available under paragraph (a) is insufficient to pay principal
and interest due on the bonds in that year, an additional amount is appropriated from the
Douglas J. Johnson economic protection trust fund to make up the deficiency.
new text end

new text begin (c) The appropriation under this subdivision terminates upon payment or maturity of
the last of the bonds issued under this section.
new text end

new text begin (d) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the
commissioner of Iron Range resources and rehabilitation must not use any amount of the
appropriation under this subdivision for administrative costs.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin (a) The commissioner of Iron Range resources and rehabilitation must
distribute funds available for distribution under subdivision 1 for the following uses:
new text end

new text begin (1) $160,000 to the Grand Portage Band of Lake Superior Chippewa to construct a
playground;
new text end

new text begin (2) $3,600,000 to the Mesabi Fit Coalition for the renovation, reconstruction, and
expansion of the former Mesabi Family YMCA in the city of Mountain Iron;
new text end

new text begin (3) $950,000 to the Buyck Volunteer Fire Department for design, engineering, and
construction of a new fire and training hall and related equipment;
new text end

new text begin (4) $750,000 to the Voyageur Trail Society for a joint maintenance facility with Voyageur
Country ATV in the city of Orr;
new text end

new text begin (5) $2,250,000 to Cook County, of which $250,000 must be spent to preserve affordable
housing units for seniors in the city of Grand Marais and $2,000,000 must be used to
construct, furnish, and equip a solid waste transfer station in the county;
new text end

new text begin (6) $1,255,000 to the Northland Learning Center for construction costs;
new text end

new text begin (7) $2,720,000 to the city of Chisholm, of which $1,520,000 must be used for the
renovation of the Chisholm Ice Arena facility and parking and the remaining amount must
be used for the public safety works;
new text end

new text begin (8) $1,000,000 to the city of Gilbert for the Gilbert Community Center;
new text end

new text begin (9) $360,000 to the city of Biwabik for housing infrastructure;
new text end

new text begin (10) $3,000,000 to the city of Tower for water management infrastructure projects;
new text end

new text begin (11) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct
publicly owned infrastructure including sewers, water systems, utility extensions, street
construction, wastewater treatment, stormwater management systems, sidewalks, and
compliance with the Americans with Disabilities Act;
new text end

new text begin (12) $2,000,000 to St. Louis County for the development of the Canyon Integrated Solid
Waste Management Campus;
new text end

new text begin (13) $3,890,000 to the city of Eveleth to design, engineer, and construct public utilities
in its business park and construction of the Hat Trick Avenue slip ramp;
new text end

new text begin (14) $700,000 to the city of Meadowlands for costs related to park improvements and
a community center;
new text end

new text begin (15) $600,000 to School District No. 2142, St. Louis County, of which $400,000 must
be used for septic system upgrades at South Ridge School and $200,000 must be used for
cafeteria renovations at Northeast Range School in Babbitt and Tower Elementary School
in Tower;
new text end

new text begin (16) $250,000 to the city of Two Harbors for band stand repairs and Odegard Park and
Trail restoration;
new text end

new text begin (17) $850,000 to the Central Iron Range Sanitary Sewer District for infrastructure
projects;
new text end

new text begin (18) $5,240,000 to the Minnesota Discovery Center to design, construct, renovate,
furnish, and repair facilities, including HVAC upgrades, demolition, and compliance with
the Americans with Disabilities Act, at the Minnesota Discovery Center in the city of
Chisholm, and for historical research funding;
new text end

new text begin (19) $4,200,000 to the commissioner of Iron Range resources and rehabilitation for the
design, engineering, and upgrades or replacement of chair lifts or an irrigation system, and
for the design, engineering, demolition, and construction of a nordic and welcome center
at the Giants Ridge Recreation Area;
new text end

new text begin (20) $250,000 to Independent School District No. 696, Ely, for baseball field renovation;
new text end

new text begin (21) $500,000 to the city of Mountain Iron for the Outdoor Recreation Center;
new text end

new text begin (22) $200,000 to Cook County Higher Education Board for costs to bring commercial
drivers' licenses and trades training to the region along with educational training and academic
support to remote populations;
new text end

new text begin (23) $200,000 to Save Our Ship, Inc., for renovation costs;
new text end

new text begin (24) $3,000,000 to Hibbing Public Utilities for water infrastructure projects;
new text end

new text begin (25) $400,000 to Veterans On The Lake for demolition of existing structures and the
building of a triplex that is compliant with the Americans with Disabilities Act;
new text end

new text begin (26) $350,000 to the city of Eveleth for the Hippodrome renovation;
new text end

new text begin (27) $500,000 to the Great Expectations School Foundation in Cook County for school
facilities construction;
new text end

new text begin (28) $225,000 to the Minnesota Forest Zone Trappers Association to plan, engineer,
purchase land, and develop the Sportsperson Training and Development Center;
new text end

new text begin (29) $200,000 to the Sturgeon Chain Lake Association to update the engineering and
hydrology study of the lakes, for regulatory and community outreach, and for preparing
recommendations to the commissioner of natural resources related to bank stabilization and
maintenance;
new text end

new text begin (30) $300,000 to the Northern Lights Music Festival to support programs, of this amount
$100,000 is available each year in calendar years 2025, 2026, and 2027;
new text end

new text begin (31) $250,000 to Cherry Township for recreational facilities upgrades and lights;
new text end

new text begin (32) $350,000 to the East Range Developmental Achievement Center for building
renovations;
new text end

new text begin (33) $500,000 to the Northland Foundation for grants or loans to (i) businesses or resorts
that were economically damaged by floods that occurred in 2022 or 2023 and which are
eligible under article 5 of the Canadian border counties economic relief program, or (ii)
outfitters in the border region who experienced either more than a 50 percent reduction in
Boundary Waters Canoe Area Wilderness permits obtained by their customers between
2019 and 2021, or a 50 percent reduction between 2019 and 2021 in trips across the fee-based
mechanical portages into the Boundary Waters Canoe Area Wilderness or Quetico Provincial
Park. Businesses may be awarded a maximum grant under this clause of up to $50,000,
must be located within the taconite assistance area, as defined under Minnesota Statutes,
section 273.1341, and must not have received a grant under the Canadian border counties
economic relief program. The Northland Foundation may retain up to four percent of the
amount under this clause for administration;
new text end

new text begin (34) $100,000 to Crystal Bay Township for a septic project at the Clair Nelson
Community Center;
new text end

new text begin (35) $25,000 to the Northwoods Friends of the Arts in the city of Cook for facility
upgrades and programs;
new text end

new text begin (36) $50,000 to the Bois Forte Band of Chippewa for food shelf expenses;
new text end

new text begin (37) $100,000 to the Lake Vermilion Cultural Center to improve and renovate the facility
and its displays in Tower;
new text end

new text begin (38) $50,000 to the Lyric Center for the Arts in Virginia for repairs and renovation;
new text end

new text begin (39) $50,000 to the Pioneer Mine historical site for maintenance and displays in Ely;
new text end

new text begin (40) $2,625,000 to the commissioner of Iron Range resources and rehabilitation to create
a mountain bike system in northern St. Louis County;
new text end

new text begin (41) $150,000 to the Lake Superior School District to support an emergency preparedness
career introduction program;
new text end

new text begin (42) $200,000 to the city of Babbitt for ADA compliance and renovations to the city's
parks;
new text end

new text begin (43) $75,000 to the Vermilion Penguins Snowmobile Club and $75,000 to the Cook
Timberwolves Snowmobile Club, to update maintenance equipment and trail programs;
new text end

new text begin (44) $500,000 to the Arrowhead Economic Opportunity Agency to design, engineer,
acquire land, and start construction of a new facility in Hibbing to meet the needs of the
population on the west end of the Mesabi Iron Range;
new text end

new text begin (45) $500,000 to Lone Pine Township to design, engineer, and begin construction for
its sewage treatment plan in partnership with the city of Nashwauk; and
new text end

new text begin (46) $500,000 for grants of $25,000 distributed pursuant to paragraph (b).
new text end

new text begin (b) Of the amount under paragraph (a), clause (46), grants of $25,000 to be used for trail
grooming costs or equipment must be made available to the following entities:
new text end

new text begin (1) Alborn Dirt Devils ATV Club;
new text end

new text begin (2) Wild Country ATV Club;
new text end

new text begin (3) Ely Igloo Snowmobile Club;
new text end

new text begin (4) CC Riders Snowmobile Club;
new text end

new text begin (5) PathBlazers Snowmobile Club;
new text end

new text begin (6) Cook Timberwolves Snowmobile Club;
new text end

new text begin (7) Crane Lake Voyageurs Club;
new text end

new text begin (8) Pequaywan Area Trail Blazers Snowmobile Club;
new text end

new text begin (9) Eveleth Trail Hawks Snowmobile Club;
new text end

new text begin (10) Ranger Snowmobile/ATV Club;
new text end

new text begin (11) Silver Trail Riders Snowmobile and ATV Club;
new text end

new text begin (12) Voyageur Snowmobile Club;
new text end

new text begin (13) Mesabi Sno Voyageurs;
new text end

new text begin (14) Quad Cities ATV Club;
new text end

new text begin (15) Prospector ATV Club;
new text end

new text begin (16) Northern Traxx ATV Club;
new text end

new text begin (17) Finland Snowmobile and ATV Club;
new text end

new text begin (18) Babbitt ATV and Snowmobile Club;
new text end

new text begin (19) Cook County ATV Club; and
new text end

new text begin (20) Vermilion Penguins Snowmobile Club.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, of the money
distributed under this subdivision, the commissioner of Iron Range resources and
rehabilitation must not use any amount for administrative uses.
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 beginning with the 2024 distribution under Minnesota Statutes, section 298.28.
new text end

Sec. 16. new text begin IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER;
BONDS AUTHORIZED IN 2025.
new text end

new text begin Subdivision 1. new text end

new text begin Issuance; purpose. new text end

new text begin (a) Notwithstanding any provision of Minnesota
Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and
rehabilitation shall, in 2025, issue revenue bonds in a principal amount of up to $31,000,000
plus an amount sufficient to pay costs of issuance in one or more series, and thereafter may
issue bonds to refund those bonds. The proceeds of the bonds must be used to pay the costs
of issuance and to make distributions pursuant to this section. The commissioner of Iron
Range resources and rehabilitation must distribute these transferred funds as outlined in
this section. In order to receive a distribution, a recipient must submit to the commissioner
a plan of how the distribution will be spent and the commissioner must ensure that the plan
matches the intended use outlined in this section. The plan must be submitted in a form and
manner determined by the commissioner. The uses listed are not subject to review or
recommendation by the Iron Range Resources and Rehabilitation Board. For all distributions
equal to or greater than $1,000,000, a recipient must appear and present and provide a copy
of the plan to the Iron Range Resources and Rehabilitation Board. By December 31, 2026,
each recipient must report to the commissioner how the distribution received under this
section was spent. If a recipient's plan is submitted and approved, the commissioner must
distribute the funds for the uses outlined in subdivision 3. The bonds issued under this
section do not constitute public debt as that term is defined in Article XI, section 4 of the
Minnesota Constitution, and as such are not subject to its provisions.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin (c) The appropriation under this subdivision terminates upon payment or maturity of
the last of the bonds issued under this section.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin The commissioner of Iron Range resources and rehabilitation must
distribute funds available for distribution under subdivision 1 for the following uses:
new text end

new text begin (1) $5,000,000 to the Minnesota Discovery Center to design, construct, renovate, furnish,
and repair facilities, including HVAC upgrades, demolition, and compliance with the
Americans with Disabilities Act, at the Minnesota Discovery Center in the city of Chisholm,
and for historical research funding;
new text end

new text begin (2) $5,800,000 to the commissioner of Iron Range resources and rehabilitation for the
design, engineering, and upgrades or replacement of chair lifts or an irrigation system, and
for the design, engineering, demolition, and construction of a nordic and welcome center
at the Giants Ridge Recreation Area;
new text end

new text begin (3) $350,000 to the Central Iron Range Sanitary Sewer District for infrastructure projects;
new text end

new text begin (4) $1,200,000 to Independent School District No. 2909, Rock Ridge, for demolition of
the James Madison Elementary School in Virginia;
new text end

new text begin (5) $500,000 to the city of Buhl for infrastructure projects;
new text end

new text begin (6) $2,300,000 to St. Louis and Lake Counties Regional Railroad Authority to design,
engineer, acquire right-of-way, and construct the Mesabi Trail Spur from Aurora to Hoyt
Lakes;
new text end

new text begin (7) $2,000,000 to the city of Mountain Iron for infrastructure projects including but not
limited to Enterprise Drive North East infrastructure development, water main and other
infrastructure in the city, waste water plant improvements to comply with new permits,
supervisory control and data acquisition on lift stations, and recreation projects;
new text end

new text begin (8) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct
publicly owned infrastructure including sewers, water systems, utility extensions, street
construction, wastewater treatment, stormwater management systems, sidewalks, and
compliance with the Americans with Disabilities Act;
new text end

new text begin (9) $5,000,000 to Independent School District No. 696, Ely, for planning, design,
engineering, demolition, and construction related to the district's athletic complex;
new text end

new text begin (10) $1,080,000 to the Northland Learning Center to construct the Alternative Learning
Center on the campus in the city of Mountain Iron;
new text end

new text begin (11) $1,000,000 for the city of Biwabik for a public safety facility;
new text end

new text begin (12) $1,770,000 to Hibbing Public Utilities for water infrastructure projects;
new text end

new text begin (13) $500,000 to St. Louis County for the demolition of the public school in Hoyt Lakes;
and
new text end

new text begin (14) $1,500,000 to the city of Babbitt for renovations to the ice arena.
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 beginning with the 2025 distribution under Minnesota Statutes, section 298.28.
new text end

Sec. 17. new text begin TRANSFER 2024 DISTRIBUTION ONLY; TACONITE ECONOMIC
DEVELOPMENT FUND.
new text end

new text begin Of the funds distributed to the taconite economic development fund under Minnesota
Statutes, section 298.28, subdivision 9a, for the 2024 distribution only, an amount equal to
$300,000 shall be transferred from the taconite economic development fund to the city of
Chisholm for the Senator David Tomassoni Bridge of Peace. The transfer must be made
within ten days of the August 2024 payment. If less than $300,000 is distributed to the
taconite economic development fund in 2024, distributions to the fund in future years must
be transferred to the city of Chisholm, pursuant to this paragraph, until the total amount
transferred equals $300,000.
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

ARTICLE 4

SALES AND USE TAXES, GROSS RECEIPTS TAXES, AND EXCISE TAXES

Section 1.

new text begin [270C.155] 2024 SALES TAX REFUND ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account creation. new text end

new text begin The 2024 sales tax refund account is created in the
special revenue fund. Any amount remaining in the 2024 sales tax refund account on July
1, 2029, cancels to the general fund.
new text end

new text begin Subd. 2. new text end

new text begin Expiration. new text end

new text begin This section expires July 1, 2029.
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 2022, section 295.53, subdivision 4a, is amended to read:

Subd. 4a.

Credit for research.

(a) In addition to the exemptions allowed under
subdivision 1, a hospital or health care provider may claim an annual credit against the total
amount of tax, if any, the hospital or health care provider owes for that calendar year under
sections 295.50 to 295.57. The credit shall equal deleted text begin 2.5deleted text end new text begin 0.50new text end percent of revenues for patient
services used to fund expenditures for qualifying research conducted by an allowable research
program. The amount of the credit shall not exceed the tax liability of the hospital or health
care provider under sections 295.50 to 295.57.

(b) For purposes of this subdivision, the following requirements apply:

(1) expenditures must be for program costs of qualifying research conducted by an
allowable research program;

(2) an allowable research program must be a formal program of medical and health care
research conducted by an entity which is exempt under section 501(c)(3) of the Internal
Revenue Code as defined in section 289A.02, subdivision 7, or is owned and operated under
authority of a governmental unit;

(3) qualifying research must:

(A) be approved in writing by the governing body of the hospital or health care provider
which is taking the deduction under this subdivision;

(B) have as its purpose the development of new knowledge in basic or applied science
relating to the diagnosis and treatment of conditions affecting the human body;

(C) be subject to review by individuals with expertise in the subject matter of the proposed
study but who have no financial interest in the proposed study and are not involved in the
conduct of the proposed study; and

(D) be subject to review and supervision by an institutional review board operating in
conformity with federal regulations if the research involves human subjects or an institutional
animal care and use committee operating in conformity with federal regulations if the
research involves animal subjects. Research expenses are not exempt if the study is a routine
evaluation of health care methods or products used in a particular setting conducted for the
purpose of making a management decision. Costs of clinical research activities paid directly
for the benefit of an individual patient are excluded from this exemption. Basic research in
fields including biochemistry, molecular biology, and physiology are also included if such
programs are subject to a peer review process.

(c) No credit shall be allowed under this subdivision for any revenue received by the
hospital or health care provider in the form of a grant, gift, or otherwise, whether from a
government or nongovernment source, on which the tax liability under section 295.52 is
not imposed.

(d) The taxpayer shall apply for the credit under this section on the annual return under
section 295.55, subdivision 5.

deleted text begin (e) Beginning September 1, 2001, if the actual or estimated amount paid under this
section for the calendar year exceeds $2,500,000, the commissioner of management and
budget shall determine the rate of the research credit for the following calendar year to the
nearest one-half percent so that refunds paid under this section will most closely equal
$2,500,000. The commissioner of management and budget shall publish in the State Register
by October 1 of each year the rate of the credit for the following calendar year. A
determination under this section is not subject to the rulemaking provisions of chapter 14.
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

Sec. 3.

Minnesota Statutes 2023 Supplement, section 297A.67, subdivision 40, is amended
to read:

Subd. 40.

new text begin Safety devices; new text end firearm storage units.

(a) new text begin Safety devices and new text end secure firearm
storage units are exempt. For the purposes of this subdivision:

(1) new text begin "safety device" has the meaning given in United States Code, title 18, section
921(a)(34)(A);
new text end

new text begin (2) new text end "secure firearm storage unit" means a container that is fully enclosed and locked by
a padlock, keylock, combination lock, or similar locking device, and is either specifically
designed for the safe storage of firearms or sold for that purpose by a federally licensed
firearms dealer; and

deleted text begin (2)deleted text end new text begin (3)new text end "firearm" has the meaning provided in section 97A.015, subdivision 19.

(b) The seller of a new text begin safety device or new text end secure firearm storage unit must neither collect, nor
transmit to any private or public entity, any personal data of or information about a purchaser
resulting from a sale eligible for the exemption under 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, 2024.
new text end

Sec. 4.

Minnesota Statutes 2022, section 297A.68, subdivision 42, is amended to read:

Subd. 42.

deleted text begin Qualifieddeleted text end Data centers.

(a) Purchases of enterprise information technology
equipment and computer software for use in a qualified data center, deleted text begin ordeleted text end a qualified refurbished
data center, new text begin or a qualified large-scale data center new text end are exempt, except that computer software
maintenance agreements are exempt for purchases made after June 30, 2013. deleted text begin The tax on
purchases exempt under this paragraph must be imposed and collected as if the rate under
section 297A.62, subdivision 1, applied, and then refunded after June 30, 2013, in the manner
provided in section 297A.75.deleted text end This exemption includes enterprise information technology
equipment and computer software purchased to replace or upgrade enterprise information
technology equipment and computer software in a qualified data center, deleted text begin ordeleted text end a qualified
refurbished data centernew text begin , or a qualified large-scale data centernew text end .

new text begin (b) For a qualified data center or qualified refurbished data center, the tax on purchases
exempt under paragraph (a) 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 (c) For a qualified large-scale data center, the exemption under paragraph (a) applies at
the time of purchase, subject to the requirements of paragraphs (m) and (o) to (q).
new text end

deleted text begin (b)deleted text end new text begin (d)new text end Electricity used or consumed in the operation of a qualified data center deleted text begin ordeleted text end new text begin ,new text end qualified
refurbished data centernew text begin , or qualified large-scale data centernew text end is exempt.

deleted text begin (c)deleted text end new text begin (e)new text end For purposes of this subdivision, "qualified data center" means a facility in
Minnesota:

(1) that is comprised of one or more buildings that consist in the aggregate of at least
25,000 square feet, and that are located on a single parcel or on contiguous parcels, where
the total cost of construction or refurbishment, investment in enterprise information
technology equipment, and computer software is at least $30,000,000 within a 48-month
period. The 48-month period begins no sooner than July 1, 2012, except that costs for
computer software maintenance agreements purchased before July 1, 2013, are not included
in determining if the $30,000,000 threshold has been met;

(2) that is constructed or substantially refurbished after June 30, 2012, where
"substantially refurbished" means that at least 25,000 square feet have been rebuilt or
modified, including:

(i) installation of enterprise information technology equipment; environmental control,
computer software, and energy efficiency improvements; and

(ii) building improvements; and

(3) that is used to house enterprise information technology equipment, where the facility
has the following characteristics:

(i) uninterruptible power supplies, generator backup power, or both;

(ii) sophisticated fire suppression and prevention systems; and

(iii) enhanced security. A facility will be considered to have enhanced security if it has
restricted access to the facility to selected personnel; permanent security guards; video
camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans,
such as hand scans and retinal or fingerprint recognition; or similar security features.

In determining whether the facility has the required square footage, the square footage
of the following spaces shall be included if the spaces support the operation of enterprise
information technology equipment: office space, meeting space, and mechanical and other
support facilities. For purposes of this subdivision, "computer software" includes, but is not
limited to, software utilized or loaded at a qualified data center deleted text begin ordeleted text end new text begin ,new text end qualified refurbished
data center, new text begin or qualified large-scale data center, new text end including maintenance, licensing, and
software customization.

deleted text begin (d)deleted text end new text begin (f)new text end For purposes of this subdivision, a "qualified refurbished data center" means an
existing facility that qualifies as a data center under paragraph deleted text begin (c)deleted text end new text begin (e)new text end , clauses (2) and (3),
but that is comprised of one or more buildings that consist in the aggregate of at least 25,000
square feet, and that are located on a single parcel or contiguous parcels, where the total
cost of construction or refurbishment, investment in enterprise information technology
equipment, and computer software is at least $50,000,000 within a 24-month period.

deleted text begin (e)deleted text end new text begin (g)new text end For purposes of this subdivision, "enterprise information technology equipment"
means computers and equipment supporting computing, networking, or data storage,
including servers and routers. It includes, but is not limited to: cooling systems, cooling
towers, and other temperature control infrastructure; power infrastructure for transformation,
distribution, or management of electricity used for the maintenance and operation of a
qualified data center or qualified refurbished data center, including but not limited to exterior
dedicated business-owned substations, backup power generation systems, battery systems,
and related infrastructure; and racking systems, cabling, and trays, which are necessary for
the maintenance and operation of the qualified data center deleted text begin ordeleted text end new text begin ,new text end qualified refurbished data
centernew text begin , or qualified large-scale data centernew text end .

new text begin (h) For purposes of this subdivision, "qualified large-scale data center" means a facility
in Minnesota:
new text end

new text begin (1) that is comprised of one or more buildings connected to each other by fiber and
associated equipment that consist in the aggregate of at least 25,000 square feet, and that
are located in one physical location or multiple locations; and
new text end

new text begin (2) for which the total cost of construction or refurbishment, investment in enterprise
information technology equipment, and computer software is at least $250,000,000
collectively by the facility and its tenants within a 60-month period beginning after June
30, 2024.
new text end

deleted text begin (f)deleted text end new text begin (i)new text end A qualified data center deleted text begin ordeleted text end new text begin ,new text end qualified refurbished data centernew text begin , or qualified large-scale
data centernew text end may claim the exemptions in this subdivision for purchases made either within
20 years of the date of its first purchase qualifying for the exemption under paragraph (a),
or by June 30, 2042, whichever is earlier.

deleted text begin (g) The purpose of this exemption is to create jobs in the construction and data center
industries.
deleted text end

deleted text begin (h)deleted text end new text begin (j)new text end This subdivision is effective for sales and purchases made before July 1, 2042.

deleted text begin (i)deleted text end new text begin (k)new text end The commissioner of employment and economic development must certify to the
commissioner of revenue, in a format approved by the commissioner of revenue, when a
qualified data center has met the requirements under paragraph deleted text begin (c) ordeleted text end new text begin (e), ornew text end a qualified
refurbished data center has met the requirements under paragraph deleted text begin (d)deleted text end new text begin (f)new text end . The certification
must provide the following information regarding each qualified data center or qualified
refurbished data center:

(1) the total square footage amount;

(2) the total amount of construction or refurbishment costs and the total amount of
qualifying investments in enterprise information technology equipment and computer
software;

(3) new text begin for a qualified data center or qualified refurbished data center, new text end the beginning and
ending of the applicable period under either paragraph deleted text begin (c)deleted text end new text begin (e)new text end or deleted text begin (d)deleted text end new text begin (f)new text end in which the qualifying
expenditures and purchases under clause (2) were made, but in no case shall the period
begin before July 1, 2012; and

(4) the date upon which the qualified data center first met the requirements under
paragraph deleted text begin (c)deleted text end new text begin (e),new text end or a qualified refurbished data center first met the requirements under
paragraph deleted text begin (d)deleted text end new text begin (f)new text end .

deleted text begin (j)deleted text end new text begin (l)new text end Any refund for sales tax paid on qualifying purchases under deleted text begin this
subdivisiondeleted text end new text begin paragraph (b)new text end must not be issued unless the commissioner of revenue has received
the certification required under paragraph deleted text begin (i)deleted text end new text begin (k)new text end issued by the commissioner of employment
and economic development.

new text begin (m) The exemption under paragraph (c) applies only if an entity seeking the exemption
certifies to the commissioner of employment and economic development that it will meet
the requirements of paragraph (h) before making any qualifying purchases. The certification
must be made in the form and manner prescribed by the commissioner of employment and
economic development, in consultation with the commissioner. The commissioner of
employment and economic development must examine the information provided in the
certification and notify the commissioner within 30 days whether it has verified the
information. The notification must include an estimate of the beginning and ending of the
period for which sales and purchases are exempt under paragraph (c). The commissioner
must then notify the entity seeking the exemption under paragraph (c) within ten days of
the determination by the commissioner of employment and economic development and, if
applicable, confirm that the exemption under paragraph (c) applies. Purchases made before
the commissioner has notified the entity of the determination by the commissioner of
employment and economic development do not qualify for the exemption under paragraph
(c), but may be eligible to qualify for the exemption under paragraph (b).
new text end

deleted text begin (k)deleted text end new text begin (n)new text end The commissioner of employment and economic development must annually
notify the commissioner of revenue of the qualified data centers that are projected to meet
the requirements under paragraph deleted text begin (c)deleted text end new text begin (e)new text end and the qualified refurbished data centers that are
projected to meet the requirements under paragraph deleted text begin (d)deleted text end new text begin (f) and qualified large-scale data
centers that are projected to meet the requirements under paragraphnew text end new text begin (h)new text end in each of the next
four years. The notification must provide the information required under paragraph deleted text begin (i)deleted text end new text begin (k)new text end ,
clauses (1) to (4), for each qualified data center or qualified refurbished data center.

new text begin (o) Laborers and mechanics performing work to construct or refurbish qualified data
centers, qualified refurbished data centers, and qualified large-scale data centers must be
paid the prevailing-wage rate for the work as defined in section 177.42, subdivision 6. Work
performed to construct or refurbish qualified data centers, qualified refurbished data centers,
and qualified large-scale data centers is subject to the requirements and enforcement
provisions of sections 177.27, 177.30, 177.32, and 177.41 to 177.45. For purposes of this
paragraph, "refurbish" does not include maintenance or equipment refreshment or
replacement.
new text end

new text begin (p) Within three years after being placed in service, a qualified large-scale data center
must certify to the commissioner of employment and economic development that the facility
has attained certification under one or more of the following sustainable design or green
building standards:
new text end

new text begin (1) BREEAM for new construction or BREEAM in-use;
new text end

new text begin (2) Energy Star;
new text end

new text begin (3) Envision;
new text end

new text begin (4) ISO 50001-energy management;
new text end

new text begin (5) LEED for building design and construction or LEED for operations and maintenance;
new text end

new text begin (6) green globes for new construction or green globes for existing buildings;
new text end

new text begin (7) UL 3223; or
new text end

new text begin (8) other reasonable standards approved by the commissioner of employment and
economic development.
new text end

new text begin (q) Notwithstanding section 289A.38, subdivision 1, the amount of the exemption allowed
under paragraph (c) must be repaid to the commissioner if the commissioner of employment
and economic development determines that a qualified large-scale data center has not met
the requirements under paragraph (p). Nothing in this paragraph prohibits the commissioner
from making an assessment of tax, interest, or penalties if the commissioner determines
that sales to and purchases made by a qualified large-scale data center do not qualify for
the exemption under paragraph (c).
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, 2024.
new text end

Sec. 5.

Minnesota Statutes 2022, section 297A.70, subdivision 19, is amended to read:

Subd. 19.

Nonprofit snowmobile clubs; machinery and equipment.

new text begin (a) new text end new text begin The following
sales to an eligible nonprofit snowmobile club are exempt:
new text end

new text begin (1) new text end sales of tangible personal property deleted text begin to a nonprofit snowmobile clubdeleted text end new text begin , including
grooming machines, attachments, other associated accessories, and repair parts,new text end that is used
primarily and directly for the grooming of state or grant-in-aid snowmobile trails deleted text begin are exempt.
The exemption applies to grooming machines, attachments, other associated accessories,
and repair parts.deleted text end new text begin ; and
new text end

new text begin (2) sales of materials and supplies used or consumed in, and equipment incorporated
into, the construction, reconstruction, maintenance, or improvement of state or grant-in-aid
snowmobile trails, completed by the nonprofit snowmobile club.
new text end

new text begin (b)new text end A nonprofit snowmobile club is eligible for the exemption under this subdivision if
it received, in the current year or in the previous three-year period, a state grant-in-aid
maintenance and grooming grant administered by the Department of Natural Resources by
applying for the grant with a local unit of government sponsor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2024.
new text end

Sec. 6.

Minnesota Statutes 2022, section 297A.75, subdivision 1, as amended by Laws
2024, chapter 85, section 95, 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 veterans with a disability 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) enterprise information technology equipment and computer software for use in a
qualified data centernew text begin or qualified refurbished data centernew text end exempt under section 297A.68,
subdivision 42new text begin , paragraph (b)new text end ;

(12) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);

(13) items purchased for use in providing critical access dental services exempt under
section 297A.70, subdivision 7, paragraph (c);

(14) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44;

(15) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;

(16) building materials, equipment, and supplies for qualifying capital projects under
section 297A.71, subdivision 52; and

(17) building materials, equipment, and supplies for constructing, remodeling, expanding,
or improving a fire station, police station, or related facilities exempt under section 297A.71,
subdivision 53.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2024.
new text end

Sec. 7.

Minnesota Statutes 2022, section 297F.01, subdivision 10b, is amended to read:

Subd. 10b.

Moist snuff.

"Moist snuff" means any finely cut, ground, or powdered
smokeless tobacconew text begin , or similar product containing nicotine,new text end that is intended to be placed or
dipped in the mouth.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 8.

Minnesota Statutes 2022, 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, and other kinds
and forms of tobacco; but does not include cigarettes as defined in this section. Tobacco
products includes nicotine solution productsnew text begin and moist snuffnew text end . 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 July 1, 2024.
new text end

Sec. 9.

Minnesota Statutes 2022, section 609.902, subdivision 4, is amended to read:

Subd. 4.

Criminal act.

"Criminal act" means conduct constituting, or a conspiracy or
attempt to commit, a felony violation of chapter 152, or a felony violation of section deleted text begin 297D.09;deleted text end
299F.79; 299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222;
609.223; 609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343;
609.344; 609.345; 609.42; 609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52,
subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is
a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a),
clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528,
if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582,
subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86;
609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the
offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act"
also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation
of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an
insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service
plan corporation regulated under chapter 62C, a health maintenance organization regulated
under chapter 62D, or a fraternal benefit society regulated under chapter 64B.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024.
new text end

Sec. 10.

Laws 2023, chapter 64, article 5, section 25, subdivision 1, is amended to read:

Subdivision 1.

Exemption; refund.

(a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a new water treatment plant new text begin and trunk water main improvements new text end in the
city of Ramsey are exempt from sales and use tax under Minnesota Statutes, chapter 297A,
provided that the materials, supplies, and equipment are purchased after December 31, 2022,
and before July 1, 2027.

(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023, and before July 1, 2027.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2022, and before July 1, 2027.
new text end

Sec. 11. new text begin ADRIAN INDEPENDENT SCHOOL DISTRICT; SALES AND USE TAX
EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the following projects in Independent School District No. 511,
Adrian, are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A,
if the materials, supplies, and equipment are purchased after March 31, 2024, and before
September 1, 2025:
new text end

new text begin (1) secondary building roofing; and
new text end

new text begin (2) elementary building roofing.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $4,999.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after March 31, 2024, and before September 1, 2025.
new text end

Sec. 12. new text begin CITY OF APPLE VALLEY; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of the Central Maintenance Facility in the city of Apple Valley are exempt
from sales and use tax under Minnesota Statutes, chapter 297A, if the materials, supplies,
and equipment are purchased after February 29, 2024, and before July 1, 2028.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $540,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after February 29, 2024, and before July 1, 2028.
new text end

Sec. 13. new text begin BECKER PUBLIC SCHOOL DISTRICT; SALES AND USE TAX
EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the construction and renovation projects for Becker Early Childhood,
Becker Primary School, Becker Intermediate School, Becker Middle School, Becker High
School, Becker Transportation Building, and the Becker Multi-Purpose Athletic Facility in
Independent School District No. 726, Becker, are exempt from sales and use tax imposed
under Minnesota Statutes, chapter 297A. The exemption under this subdivision only applies
if materials, supplies, and equipment are purchased after December 31, 2021, and before
January 1, 2026.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2024.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $1,180,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2021, and before January 1, 2026.
new text end

Sec. 14. new text begin BIG LAKE INDEPENDENT SCHOOL DISTRICT; SALES AND USE TAX
EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction and renovation projects for Big Lake Liberty
Elementary School, Big Lake Independence Elementary School, Big Lake Middle School,
and Big Lake High School in Independent School District No. 727, Big Lake, are exempt
from sales and use tax imposed under Minnesota Statutes, chapter 297A, if the materials,
supplies, and equipment are purchased after December 31, 2021, and before January 1,
2025.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $780,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2021, and before January 1, 2025.
new text end

Sec. 15. new text begin BROWERVILLE PUBLIC SCHOOLS; SALES AND USE TAX
EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the following projects in Independent School District No. 787, Browerville
Public Schools, are exempt from sales and use tax imposed under Minnesota Statutes,
chapter 297A, if the materials, supplies, and equipment are purchased after December 31,
2023, and before January 1, 2026:
new text end

new text begin (1) renovations to the prekindergarten through grade 12 school building; and
new text end

new text begin (2) construction of a new gymnasium, classrooms, locker rooms, a wrestling and weight
room, offices, and a stage.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $580,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2023, and before January 1, 2026.
new text end

Sec. 16. new text begin CITY OF BURNSVILLE; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a new city hall in the city of Burnsville are exempt from sales and use tax
under Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment are
purchased after December 31, 2024, and before July 1, 2028.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $760,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. 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, 2024, and before July 1, 2028.
new text end

Sec. 17. new text begin CANBY INDEPENDENT SCHOOL DISTRICT; SALES AND USE TAX
EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of the following projects in the elementary and high schools in Independent
School District No. 891, Canby, are exempt from sales and use tax imposed under Minnesota
Statutes, chapter 297A, if materials, supplies, and equipment are purchased after December
31, 2023, and before January 1, 2026:
new text end

new text begin (1) a new gymnasium with improved community access;
new text end

new text begin (2) career technical education space addition;
new text end

new text begin (3) HVAC upgrades;
new text end

new text begin (4) a new eight-lane track;
new text end

new text begin (5) athletic field improvements and upgrades;
new text end

new text begin (6) stadium seating and press box renovations;
new text end

new text begin (7) secure entrance upgrades for both schools with associated administrative office
relocations;
new text end

new text begin (8) renovations to existing locker rooms;
new text end

new text begin (9) classroom renovations;
new text end

new text begin (10) site drainage; and
new text end

new text begin (11) other associated renovations.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $860,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2023, and before January 1, 2026.
new text end

Sec. 18. new text begin CASS LAKE-BENA INDEPENDENT SCHOOL DISTRICT; SALES AND
USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction and equipping of a new elementary school,
and the construction of improvements to repurpose and remodel the existing elementary
school facility for use as an early childhood and preschool site, alternative learning center,
and district service center in Independent School District No. 115, Cass Lake-Bena, are
exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if materials,
supplies, and equipment are purchased after June 30, 2023, and before October 1, 2025.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $980,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2023, and before October 1, 2025.
new text end

Sec. 19. new text begin CITY OF CHANHASSEN; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of the Chanhassen Bluffs Sports Complex in the city of Chanhassen are
exempt from sales and use tax under Minnesota Statutes, chapter 297A, if the materials,
supplies, and equipment are purchased after August 31, 2025, and before October 1, 2026.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $1,480,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after August
31, 2025, and before October 1, 2026.
new text end

Sec. 20. new text begin CITY OF COLUMBIA HEIGHTS; SALES AND USE TAX EXEMPTION
FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the construction, reconstruction, upgrade, expansion, or remodeling of
the city hall facility in the city of Columbia Heights are exempt from sales and use tax
imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and equipment are
purchased after August 31, 2021, and before April 1, 2024.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $220,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after August 31, 2021, and before April 1, 2024.
new text end

Sec. 21. new text begin CITY OF DELANO; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of an ice rink in the city of Delano are exempt from sales and use tax under
Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment are purchased
after November 30, 2023, and before January 1, 2026.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $310,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after November 30, 2023, and before January 1, 2026.
new text end

Sec. 22. new text begin CITY OF EDINA; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling relating to the following projects in the city of Edina are exempt from sales
and use tax under Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment
are purchased after December 31, 2023, and before July 1, 2028:
new text end

new text begin (1) development of Fred Richards Park as identified in the Fred Richards Park Master
Plan; and
new text end

new text begin (2) improvements to Braemar Park as identified in the Braemar Park Master Plan.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $870,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2023, and before July 1, 2028.
new text end

Sec. 23. new text begin ELLSWORTH INDEPENDENT SCHOOL DISTRICT; SALES AND USE
TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the following projects in Independent School District No. 514,
Ellsworth, are exempt from sales and use tax imposed under Minnesota Statutes, chapter
297A, if the materials, supplies, and equipment are purchased after December 31, 2024,
and before October 1, 2025:
new text end

new text begin (1) replacement of a boiler system with a heating and cooling HVAC system;
new text end

new text begin (2) replacement of windows in the elementary wing;
new text end

new text begin (3) replacement of the gym roof and shop roof;
new text end

new text begin (4) replacement of fuel oil with propane for the new HVAC system;
new text end

new text begin (5) installation of a new electrical system for the new HVAC system;
new text end

new text begin (6) building tuckpointing; and
new text end

new text begin (7) renovation of the bus garage.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $160,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. 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, 2024, and before October 1, 2025.
new text end

Sec. 24. new text begin CITY OF GRAND RAPIDS; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of the IRA Civic Center in the city of Grand Rapids are exempt from sales
and use tax under Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment
are purchased after June 30, 2021, and before July 1, 2024.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $580,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2021, and before July 1, 2024.
new text end

Sec. 25. new text begin HERON LAKE-OKABENA INDEPENDENT SCHOOL DISTRICT; SALES
AND USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction of school building updates including roof
replacement, concrete work, tuckpointing, windows, flooring, bus garage doors, Heron Lake
doors, bathroom fixtures and upgrades, and pool filter replacement in Independent School
District No. 330, Heron Lake-Okabena, are exempt from sales and use tax imposed under
Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment are purchased
after May 31, 2024, and before January 1, 2025.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $100,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after May
31, 2024, and before January 1, 2025.
new text end

Sec. 26. new text begin HILLS-BEAVER CREEK INDEPENDENT SCHOOL DISTRICT; SALES
AND USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction of a new elementary school and parking lot,
and repairs to a gymnasium, locker rooms, a vehicle garage, and a bus garage building in
Independent School District No. 671, Hills-Beaver Creek, are exempt from sales and use
tax imposed under Minnesota Statutes, chapter 297A, if the materials, supplies, and
equipment are purchased after February 29, 2024, and before January 1, 2026.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $880,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after February 29, 2024, and before January 1, 2026.
new text end

Sec. 27. new text begin ITASCA COUNTY; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of the Itasca County courthouse are exempt from sales and use tax under
Minnesota Statutes, chapter 297A, provided that the materials, supplies, and equipment are
purchased after April 30, 2021, and before January 1, 2025.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $470,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after April 30, 2021, and before January 1, 2025.
new text end

Sec. 28. new text begin LAKE SUPERIOR SCHOOL DISTRICT; SALES AND USE TAX
EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the following projects in Independent School District No. 381, Lake
Superior School District, are exempt from sales and use tax imposed under applicable
statutes if materials, supplies, and equipment are purchased after December 31, 2022, and
before January 1, 2026:
new text end

new text begin (1) an addition and improvements to Minnehaha Elementary School;
new text end

new text begin (2) an addition and improvements to William Kelly School;
new text end

new text begin (3) improvements to Two Harbors High School;
new text end

new text begin (4) improvements to or replacement of the Two Harbors Bus Garage and Silver Bay
Bus Garage; and
new text end

new text begin (5) improvements to athletic facilities.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $1,320,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2022, and before January 1, 2026.
new text end

Sec. 29. new text begin LE SUEUR-HENDERSON SCHOOL DISTRICT; SALES AND USE TAX
EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the construction of a new elementary school in Independent School District
No. 2397, Le Sueur-Henderson, are exempt from sales and use tax imposed under Minnesota
Statutes, chapter 297A, if materials, supplies, and equipment are purchased after May 31,
2023, and before January 1, 2025.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $930,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after May 31, 2023, and before January 1, 2025.
new text end

Sec. 30. new text begin MARTIN COUNTY WEST INDEPENDENT SCHOOL DISTRICT; SALES
AND USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction of a new prekindergarten through grade 12
school building in Independent School District No. 2448, Martin County West, are exempt
from sales and use tax imposed under Minnesota Statutes, chapter 297A, if the materials,
supplies, and equipment are purchased after September 30, 2025, and before January 1,
2027.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $2,280,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
September 30, 2025, and before January 1, 2027.
new text end

Sec. 31. new text begin CITY OF PLYMOUTH; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of the following projects relating to the City Center revitalization project in
the city of Plymouth are exempt from sales and use tax under Minnesota Statutes, chapter
297A, if the materials, supplies, and equipment are purchased after December 31, 2023,
and before July 1, 2028:
new text end

new text begin (1) construction of a public parking ramp;
new text end

new text begin (2) renovation of Plymouth Boulevard;
new text end

new text begin (3) expansion of the Plymouth Ice Center;
new text end

new text begin (4) construction of regional stormwater ponding;
new text end

new text begin (5) roadway realignment; and
new text end

new text begin (6) expansion of the Plymouth Community Center.
new text end

new text begin (b) Materials and supplies used or consumed in and equipment incorporated into the
renovation of the Zachary Water Treatment Plant and the renovation of Meadows Playfield
in the city of Plymouth are exempt from sales and use tax under Minnesota Statutes, chapter
297A, if the materials, supplies, and equipment are purchased after December 31, 2023,
and before July 1, 2028.
new text end

new text begin (c) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2024.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $620,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2023, and before July 1, 2028.
new text end

Sec. 32. new text begin CITY OF ROCHESTER; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the construction of a sports and recreation complex in the city of Rochester
are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if
materials, supplies, and equipment are purchased after June 30, 2023, and before July 1,
2028.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $1,320,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2023, and before July 1, 2028.
new text end

Sec. 33. new text begin ROUND LAKE-BREWSTER INDEPENDENT SCHOOL DISTRICT;
SALES AND USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction of a three-story school building project in
Independent School District No. 2907, Round Lake-Brewster, are exempt from sales and
use tax imposed under Minnesota Statutes, chapter 297A, if the materials, supplies, and
equipment are purchased after December 31, 2023, and before September 1, 2026.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $870,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2023, and before September 1, 2026.
new text end

Sec. 34. new text begin RUSSELL TYLER RUTHTON INDEPENDENT SCHOOL DISTRICT;
SALES AND USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction of a prekindergarten through grade 12 school
building and athletic field in Independent School District No. 2902, Russell Tyler Ruthton,
are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if the
materials, supplies, and equipment are purchased after December 31, 2019, and before
January 1, 2024.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Notwithstanding
Minnesota Statutes, section 289A.40, claims for refunds for sales and purchases made after
December 31, 2019, and before October 1, 2020, may be filed until January 1, 2025.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $1,590,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2019, and before January 1, 2024.
new text end

Sec. 35. new text begin CITY OF SPRING LAKE PARK; SALES AND USE TAX EXEMPTION
FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a city hall facility in the city of Spring Lake Park are exempt from sales
and use tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies,
and equipment are purchased after December 31, 2023, and before January 1, 2026.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $360,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2023, and before January 1, 2026.
new text end

Sec. 36. new text begin ST. CLAIR SCHOOL DISTRICT; SALES AND USE TAX EXEMPTION
FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling relating to the following projects in Independent School District No. 75, St.
Clair Schools, are exempt from sales and use tax imposed under Minnesota Statutes, chapter
297A, if materials, supplies, and equipment are purchased after October 31, 2021, and before
November 1, 2025:
new text end

new text begin (1) construction of new classrooms and playgrounds; and
new text end

new text begin (2) improvements to roofs, parking lots, mechanical systems, and athletic spaces.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $350,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after October 31, 2021, and before November 1, 2025.
new text end

Sec. 37. new text begin TRACY AREA INDEPENDENT SCHOOL DISTRICT; SALES AND USE
TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of Tracy Elementary, Tracy High School, and Tracy Kids World in
Independent School District No. 2904, Tracy, are exempt from sales and use tax imposed
under Minnesota Statutes, chapter 297A, if materials, supplies, and equipment are purchased
after December 31, 2022, and before January 1, 2025.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $650,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2022, and before January 1, 2025.
new text end

Sec. 38. new text begin CITY OF WATERTOWN; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a new water tower in the city of Watertown are exempt from sales and use
tax under Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment are
purchased after April 30, 2024, and before February 1, 2026.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $140,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after April 30, 2024, and before February 1, 2026.
new text end

Sec. 39. new text begin WINDOM INDEPENDENT SCHOOL DISTRICT; SALES AND USE TAX
EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction of facility roofing projects and HVAC upgrades,
athletic track replacement, and outdoor athletic complex improvements in Independent
School District No. 177, Windom, are exempt from sales and use tax imposed under
Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment are purchased
after June 30, 2024, and before January 1, 2027.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $870,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2024, and before January 1, 2027.
new text end

Sec. 40. new text begin CITY OF WOODBURY; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a water treatment facility, including water pipeline infrastructure and
associated improvements, funded by the city of Woodbury are exempt from sales and use
tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies, and
equipment are purchased after January 31, 2024, and before July 1, 2028.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $2,070,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after January 31, 2024, and before July 1, 2028.
new text end

Sec. 41. new text begin WORTHINGTON INDEPENDENT SCHOOL DISTRICT; SALES AND
USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the following projects in Independent School District No. 518,
Worthington, are exempt from sales and use tax imposed under Minnesota Statutes, chapter
297A, if the materials, supplies, and equipment are purchased after April 30, 2020, and
before January 1, 2028:
new text end

new text begin (1) construction of a new grades 3 through 5 intermediate school building;
new text end

new text begin (2) construction of a new community education building to serve early childhood, adult
basic education, and the Nobles County Integration Collaborative programs;
new text end

new text begin (3) construction of a new storage facility to serve the Worthington Intermediate School,
Worthington Learning Center and gymnastics facility, and Worthington Community
Education building;
new text end

new text begin (4) reconstruction and replacement of the parking lot at the Worthington Middle School;
new text end

new text begin (5) construction of an addition to the Worthington High School and remodeling of
existing space and expansion of core areas;
new text end

new text begin (6) construction of a new ice arena with associated event space;
new text end

new text begin (7) installation of a turf football field at the Worthington Middle School;
new text end

new text begin (8) demolition of the former West Elementary building and construction of sports fields
with associated parking;
new text end

new text begin (9) reconstruction of Trojan Field and associated facilities; and
new text end

new text begin (10) improvements to the Worthington Learning Center and gymnastics facility.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Notwithstanding
Minnesota Statutes, section 289A.40, claims for refunds for sales and purchases made after
April 30, 2020, and before October 1, 2020, may be filed until January 1, 2025.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $2,840,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after April 30, 2020, and before January 1, 2028.
new text end

Sec. 42. new text begin CITY OF DULUTH AND CITY OF ELY; HOUSING DEVELOPMENT
PROJECTS SALES AND USE TAX EXEMPTION.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of the following projects in the city of Duluth and the city of Ely are exempt
from sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials,
supplies, and equipment are purchased after December 31, 2023, and before July 1, 2026:
new text end

new text begin (1) an apartment development that includes at least 50 units;
new text end

new text begin (2) a condominium development that includes at least 25 units; and
new text end

new text begin (3) a townhome development that includes at least ten units.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied. A refund equal to the tax paid on the gross receipts of
items exempt under this section must be paid to the applicant. The applicant must be the
owner of the development project described in paragraph (a), clauses (1) to (3). The
application must include sufficient information to permit the commissioner of revenue to
verify the tax paid. If the tax was paid by a contractor, subcontractor, or builder, 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. The provisions of Minnesota
Statutes, sections 289A.40 and 289A.50, apply to refunds under this section. Refunds for
eligible purchases must not be issued until after June 30, 2025.
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $3,890,000.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2023, and before July 1, 2026.
new text end

Sec. 43. new text begin CITY OF ST. CLOUD; REDEVELOPMENT DISTRICT SALES AND USE
TAX EXEMPTION.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into private redevelopment projects on parcels listed in paragraph (b) are
exempt, provided the resulting development is subject to property taxes.
new text end

new text begin (b) The exemption in this section applies to the following parcels, and adjacent roads
and right of ways, with the tax identification numbers:
new text end

new text begin (1) in Stearns County: 82517020000 (Lady Slipper Catalyst Site); 82515440001 (North
Riverfront Catalyst Site); 82515470000; 82515480000 (Empire Catalyst Site); 82518760015
(Swan Lot Catalyst Site); 82528850020 (Riverboat Lot Catalyst Site); and 82528850001
(Former Herberger's); and
new text end

new text begin (2) in Benton County: 170037810 (Transit Oriented Development Catalyst Site);
170058101 (Ace Block Catalyst Site); 170042000; 170041600; 170041100; 170041601;
170041200; 170041800; 170059600 (Star Bank Catalyst Site); 170059300 (Riverfront South
Catalyst Site); 170058300; 170059200; 170058600; 170058800; 170059100; and 170058900.
new text end

new text begin (c) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied. A refund equal to the tax paid on the gross receipts of
items exempt under this section must be paid to the applicant. The applicant must be the
owner of the development described in paragraph (b), clauses (1) and (2). The application
must include sufficient information to permit the commissioner of revenue to verify the tax
paid. If the tax was paid by a contractor, subcontractor, or builder, 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. The provisions of sections 289A.40
and 289A.50 apply to refunds under this section.
new text end

new text begin (d) The exemption under this section applies only for sales and purchases made after
May 31, 2024, and before June 1, 2026.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation; limit on refunds. new text end

new text begin The amount required to pay the refunds
under subdivision 1 is appropriated from the 2024 sales tax refund account in the special
revenue fund to the commissioner of revenue. The commissioner must not pay more than
$3,060,000 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 May
31, 2024, and before June 1, 2026.
new text end

Sec. 44. new text begin TRANSFER.
new text end

new text begin $33,910,000 in fiscal year 2024 is transferred from the general fund to the 2024 sales
tax refund account established under Minnesota Statutes, section 270C.155. This is a onetime
transfer.
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. 45. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, sections 13.4967, subdivision 5; 297D.02; 297D.03;
297D.05; 297D.09, subdivisions 1 and 2; 297D.12; and 297D.13, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2023 Supplement, sections 297D.01; 297D.04; 297D.06; 297D.07;
297D.08; 297D.085; 297D.09, subdivision 1a; 297D.10; and 297D.11, 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 August 1, 2024.
new text end

ARTICLE 5

TAX INCREMENT FINANCING

Section 1.

Laws 2010, chapter 389, article 7, section 22, as amended by Laws 2011, chapter
112, article 11, section 16, is amended to read:

Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.

(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax
increment financing plan for a district, the rules under this section apply to a redevelopment
tax increment financing district established by the city or an authority of the city. The
redevelopment tax increment district includes parcels within the area bounded on the east
by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama
Street, on the west by Llama Street, and on the south by a line running parallel to and 600
feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels
28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka County
Regional Park property in its entirety. A parcel within this area that is included in a tax
increment financing district that was certified before the date of enactment of this act may
be included in the district created under this act if the initial district is decertified.

(b) The requirements for qualifying a redevelopment tax increment district under
Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located
within the district.

(c) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
Eligible expenditures within the district include but are not limited to (1) the city's share of
the costs necessary to provide for the construction of the Northstar Transit Station and
related infrastructure, including structured parking, a pedestrian overpass, and roadway
improvements, (2) the cost of land acquired by the city or the housing and redevelopment
authority in and for the city of Ramsey within the district prior to the establishment of the
district, and (3) the cost of public improvements installed within the tax increment financing
district prior to the establishment of the district.

(d) 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 district if the activities were undertaken
within ten years from the date of certification of the district.

(e) Except for administrative expenses, the in-district percentage for purposes of the
restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for this
district is 100 percent.

(f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not
apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred
after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of
the tax increment financing plan for the district.

new text begin (g) The requirement of Minnesota Statutes, section 469.178, subdivision 7, paragraph
(b), is considered to be met for the district if the city adopts interfund loan resolutions
reflecting the terms and conditions required by Minnesota Statutes, section 469.178,
subdivision 7, paragraph (d), by December 31, 2024.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city of Ramsey and its
chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and
3.
new text end

Sec. 2.

Laws 2014, chapter 308, article 6, section 9, as amended by Laws 2017, First
Special Session chapter 1, article 6, section 12, 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 all or a portion of 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 paragraph, and may
include any additional property necessary to cause the property included in the tax increment
financing district to consist of complete parcels.

(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 deleted text begin eightdeleted text end new text begin 13new text end 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 deleted text begin 20deleted text end new text begin 25new text end 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.

(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:

(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken
primarily to serve the development;

(2) the city has a binding, written commitment and adequate financial assurances from
the developer that the development will be constructed; and

(3) the development does not consist of retail trade or housing improvements.

new text begin EFFECTIVE DATE. new text end

new text begin (a) The amendment to subdivision 2, paragraph (f), is effective
upon compliance by the city of Maple Grove, Hennepin County, and Independent School
District No. 279 with the requirements of Minnesota Statutes, section 469.1782, subdivision
2.
new text end

new text begin (b) The amendment to subdivision 2, paragraph (d), is effective the day after the
governing body of the city of Maple Grove and its chief clerical officer comply with the
requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 3.

Laws 2017, First Special Session chapter 1, article 6, section 22, is amended to
read:

Sec. 22. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.

(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.

(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 begin (c) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for the Ford Site Redevelopment Tax Increment Financing District in the city
of St. Paul.
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 St. Paul and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 4. new text begin CITY OF BROOKLYN CENTER; TIF AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
economic development authority of the city of Brooklyn Center or the city of Brooklyn
Center may establish not more than two redevelopment tax increment financing districts
located wholly within the area in the city identified as the "Opportunity Site," which includes
the area bounded by Shingle Creek Parkway from Hennepin County State-Aid Highway
10 to Summit Drive North; Summit Drive North from Shingle Creek Parkway to marked
Trunk Highway 100; marked Trunk Highway 100 from Summit Drive North to Hennepin
County State-Aid Highway 10; and Hennepin County State-Aid Highway 10 from marked
Trunk Highway 100 to Shingle Creek Parkway, together with internal and adjacent roads
and rights of way.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or the authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end

new text begin (1) the district is deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district;
and
new text end

new text begin (3) increment generated from the district may be expended on activities within the area
described in subdivision 1 and all such expenditures are deemed expended on activities
within the district for purposes of Minnesota Statutes, section 469.1763.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires on December 31, 2030.
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 Brooklyn Center and its chief clerical officer comply with the requirements of
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 5. new text begin CITY OF BROOKLYN PARK; TIF AUTHORITY; VILLAGE CREEK
AREA.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of districts. new text end

new text begin Upon the termination of Tax Increment
Financing District No. 20 within the city of Brooklyn Park, under the special rules established
in subdivision 2, the economic development authority of the city of Brooklyn Park or city
of Brooklyn Park may establish not more than two redevelopment tax increment financing
districts located wholly within the area of the city of Brooklyn Park. The districts may be
comprised of the following parcels identified by their current parcel identification numbers:
new text end

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new text begin together with adjacent and internal roads and rights-of-way, and the following roadways
within the city of Brooklyn Park: Zane Avenue North (from and including the intersection
at 78th Avenue North to and including the intersection at Highway 94), Brooklyn Boulevard
(from and including the intersection at the border of Brooklyn Center to and including the
intersection at Kentucky Avenue North), Brookdale Drive North (from and including the
intersection at Zane Avenue North to and including the intersection at Welcome Avenue
North), Village Creek Parkway North, 77th Avenue North (from and including the
intersection at Village Creek Parkway North to and including the intersection at Brookdale
Drive North), 73rd Avenue North/Regent Avenue (from and including the intersection at
Zane Avenue North to and including the intersection at Brooklyn Boulevard).
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:
new text end

new text begin (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to request certification of any district under this
section expires on December 31, 2030.
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 Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 6. new text begin CITY OF BROOKLYN PARK; TIF AUTHORITY; 610/ZANE AREA.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of districts. new text end

new text begin Under the special rules established in
subdivision 2, the economic development authority of the city of Brooklyn Park or the city
of Brooklyn Park may establish not more than two redevelopment districts located wholly
within the area of the city of Brooklyn Park. The districts may be comprised of the following
parcels identified by their current parcel identification numbers together with adjacent and
internal roads and rights-of-way:
new text end

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new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:
new text end

new text begin (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to request certification of any district under this
section expires on December 31, 2030.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 7. new text begin CITY OF BROOKLYN PARK; TIF AUTHORITY; BIOTECH AREA.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
economic development authority of the city of Brooklyn Park or the city of Brooklyn Park
may establish not more than two redevelopment districts located wholly within the area of
the city of Brooklyn Park. The districts may be comprised of the following parcels identified
by their current parcel identification numbers together with adjacent and internal roads and
rights-of-way:
new text end

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new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:
new text end

new text begin (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to request certification of any district under this
section expires on December 31, 2030.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 8. new text begin CITY OF EDEN PRAIRIE; TAX INCREMENT FINANCING AUTHORITY;
EDEN PRAIRIE CENTER.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Pursuant to the special rules established in subdivision
2, the economic development authority of the city of Eden Prairie or the city of Eden Prairie
may establish not more than two redevelopment districts located within the area of the city
of Eden Prairie consisting of parcels, together with adjacent roads and rights-of-way, within
the area surrounded by Flying Cloud Drive, West 78th Street, and Prairie Center Drive.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end

new text begin (1) the districts are deemed to meet the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2030.
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 Eden Prairie and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 9. new text begin CITY OF EDINA; 72ND & FRANCE 2 TIF DISTRICT; FIVE-YEAR RULE
EXTENSION; DURATION EXTENSION.
new text end

new text begin (a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District 72nd & France 2 in the city of Edina.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
city of Edina or its housing and redevelopment authority may elect to extend the duration
of the district by five years for Tax Increment Financing District 72nd & France 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day after the governing body of the
city of Edina and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance
by the city of Edina, Hennepin County, and Independent School District No. 273 with the
requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end

Sec. 10. new text begin CITY OF EDINA; 70TH & FRANCE TIF DISTRICT; FIVE-YEAR RULE
EXTENSION; DURATION EXTENSION.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 11. new text begin CITY OF MINNETONKA; TAX INCREMENT FINANCING AUTHORITY;
FIVE-YEAR RULE EXTENSION.
new text end

new text begin The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for the renewal and renovation tax increment financing district established in
2021 by the economic development authority in the city of Minnetonka.
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 Minnetonka and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 12. new text begin CITY OF MOORHEAD; TAX INCREMENT FINANCING DISTRICT
NO. 31; FIVE-YEAR RULE EXTENSION.
new text end

new text begin (a) The requirements 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, are extended to ten years for Tax Increment Financing
District No. 31 administered by the city of Moorhead.
new text end

new text begin (b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, relating
to the use of increment after the expiration of the five-year period under Minnesota Statutes,
section 469.1763, subdivision 3, are extended to the 11th year for Tax Increment Financing
District No. 31 administered by the city of Moorhead.
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 Moorhead and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 13. new text begin CITY OF PLYMOUTH; TAX INCREMENT FINANCING;
ESTABLISHMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
city of Plymouth may establish not more than two redevelopment districts located wholly
within the city of Plymouth, Hennepin County, Minnesota, limited to the area identified as
the city center district in the Plymouth, Minnesota Zoning Map in effect on January 1, 2024,
and adopted pursuant to section 21000.12 of the Plymouth Zoning Code of Ordinances.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city establishes a tax increment financing district under
this section, the following special rules apply:
new text end

new text begin (1) the district is deemed to meet the requirements of Minnesota Statutes, section 469.174,
subdivision 10;
new text end

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district;
and
new text end

new text begin (3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years, and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2030.
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 Plymouth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 14. new text begin CITY OF ST. CLOUD; TAX INCREMENT FINANCING;
ESTABLISHMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules established in subdivision 2, the
economic development authority of the city of St. Cloud or the city of St. Cloud may establish
not more than two redevelopment districts adjacent to the Division Street corridor or within
the Central Business District or Fringe Central District, limited to the following parcels
identified by tax identification numbers, together with the adjacent roads and rights-of-way:
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end

new text begin (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end

new text begin (2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district;
and
new text end

new text begin (3) increments generated from the districts may be expended for the reconstruction,
expansion, or new construction of adjacent public infrastructure, including but not limited
to public parking, streets, and utilities necessary to serve the development, and all
expenditures under this clause are deemed expended on activities within the district for
purposes of Minnesota Statutes, section 469.1763.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires on December 31, 2030.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city of St. Cloud and
its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2
and 3.
new text end

ARTICLE 6

LOCAL SALES AND USE TAXES

Section 1.

Minnesota Statutes 2023 Supplement, section 297A.99, subdivision 1, is
amended to read:

Subdivision 1.

Authorization; scope.

(a) A political subdivision of this state may impose
a general sales tax (1) under section 297A.9915, (2) under section 297A.992, (3) under
section 297A.9925, (4) under section 297A.993, (5) if permitted by special law, or (6) if
the political subdivision enacted and imposed the tax before January 1, 1982, and its
predecessor provision.

(b) This section governs the imposition of a general sales tax by the political subdivision.
The provisions of this section preempt the provisions of any special law:

(1) enacted before June 2, 1997deleted text begin , ordeleted text end new text begin ;
new text end

(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by referencedeleted text begin .deleted text end new text begin ; or
new text end

new text begin (3) enacted before July 1, 2024.
new text end

(c) This section does not apply to or preempt a sales tax on motor vehicles. Beginning
July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles
unless it is imposed under section 297A.993.

(d) A political subdivision may not advertise or expend funds for the promotion of a
referendum to support imposing a local sales tax and may only spend funds related to
imposing a local sales tax to:

(1) conduct the referendum;

(2) disseminate information included in the resolution adopted under subdivision 2, but
only if the disseminated information includes a list of specific projects and the cost of each
individual project;

(3) provide notice of, and conduct public forums at which proponents and opponents on
the merits of the referendum are given equal time to express their opinions on the merits of
the referendum;

(4) provide facts and data on the impact of the proposed local sales tax on consumer
purchases; and

(5) provide facts and data related to the individual programs and projects to be funded
with the local sales tax.

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 2022, section 297A.99, subdivision 3, is amended to read:

Subd. 3.

Legislative authority required before voter approval; requirements for
adoption, use, termination.

(a) A political subdivision must receive legislative authority
to impose a local sales tax before submitting the tax for approval by voters of the political
subdivision. Imposition of a local sales tax is subject to approval by voters of the political
subdivision at a general election. The election must be conducted at a general election within
the two-year period after the governing body of the political subdivision has received
authority to impose the tax. If the authorizing legislation allows the tax to be imposed for
more than one project, there must be a separate question approving the use of the tax revenue
for each project. Notwithstanding the authorizing legislation, a project that is not approved
by the voters may not be funded with the local sales tax revenue and the termination date
of the tax set in the authorizing legislation must be reduced proportionately based on the
share of that project's cost to the total costs of all projects included in the authorizing
legislation.

(b) The proceeds of the tax must be dedicated exclusively to payment of the construction
and rehabilitation costs and associated bonding costs related to the specific capital
improvement projects that were approved by the voters under paragraph (a).new text begin The political
subdivision must not commingle revenue from a tax for a project or projects approved by
the voters under this section with revenue from a local sales tax authorized under section
297A.9901 or any other law, ordinance, city charter, or other provision, including an
extension of or modification to the uses of a local sales tax for a different project.
new text end

(c)new text begin The political subdivision imposing the tax must notify the commissioner at least 60
days before the date the political subdivision anticipates that revenues raised from the tax
are sufficient to fund the projects approved by the voters under paragraph (a). The notification
applies to each authorization of a tax and each project approved by the voters under paragraph
(a), regardless of whether the legislature has authorized the tax notwithstanding the
requirements of paragraph (d).new text end The tax must terminate after the revenues raised are sufficient
to fund the projects approved by the voters under paragraph (a).new text begin The political subdivision
must notify the commissioner within 30 days of the date that sufficient revenues have been
raised to fund the projects approved by the voters under paragraph (a).
new text end

(d) After a sales tax imposed by a political subdivision has expired or been terminated,
the political subdivision is prohibited from imposing a local sales tax for a period of one
year.

deleted text begin (e) Notwithstanding paragraph (a), if a political subdivision received voter approval to
seek authority for a local sales tax at the November 6, 2018, general election and is granted
authority to impose a local sales tax before January 1, 2021, the tax may be imposed without
an additional referendum provided that it meets the requirements of subdivision 2 and the
list of specific projects contained in the resolution does not conflict with the projects listed
in the approving referendum.
deleted text end

deleted text begin (f)deleted text end new text begin (e)new text end If a tax is terminated because sufficient revenues have been raised, any amount
of tax collected under subdivision 9, after sufficient revenues have been raised and before
the quarterly termination required under subdivision 12, paragraph (a), that is greater than
the average quarterly revenues collected over the immediately preceding 12 calendar months
must be retained by the commissioner for deposit in the general fund.

new text begin (f) The total tax rate imposed by a political subdivision under this section or any other
law, ordinance, or city charter and section 297A.9901 must not exceed one percent, except
that this limit does not apply to taxes authorized under this section or any other law,
ordinance, or city charter before June 1, 2023. Upon expiration of a tax authorized under
this section or any other law, ordinance, or city charter, the limit in this paragraph applies.
If a local sales tax is imposed by a county, the limit under this paragraph includes any tax
authorized under section 297A.993.
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.

new text begin [297A.9901] SPECIFIED CAPITAL PROJECTS; LOCAL AUTHORIZATION
ALLOWED; REQUIREMENTS.
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) "Airport" means an airport not subject to the governance of the metropolitan airports
commission organized under the provisions of sections 473.601 to 473.679.
new text end

new text begin (c) "Associated bonding costs" means the cost of issuing bonds to finance a specified
capital project including but not limited to the costs of issuance of the bonds, capitalized
interest, and the payment of principal and interest on the bonds.
new text end

new text begin (d) "Convention center" means a structure:
new text end

new text begin (1) that has a minimum of 50,000 square feet for exhibit and meeting spaces; and
new text end

new text begin (2) the square footage of which is expressly designed and constructed for the purposes
of presenting conventions, public meetings, and exhibitions, and includes parking facilities
that serve the center.
new text end

new text begin (e) "Correctional facility" means a public facility licensed and inspected by the
commissioner of corrections established and operated for the detention and confinement of
adults or juveniles, including but not limited to programs or facilities operating under chapter
401, secure juvenile detention facilities, municipal holding facilities, juvenile temporary
holdover facilities, regional or local jails, lockups, work houses, work farms, and detention
facilities.
new text end

new text begin (f) "District court" means one of the ten judicial district courts in the state of Minnesota
subject to chapter 484.
new text end

new text begin (g) "Law enforcement center" means a facility that serves multiple communities and
provides public safety functions, including a fire or police station and a facility that provides
emergency 911 and dispatch functions, training facilities, court security and support,
emergency operations, evidence and record retention, and other public safety services.
new text end

new text begin (h) "Library" means a library that is part of a regional public library system as designated
by the regional library board under section 134.20, excluding a library located within a
metropolitan county.
new text end

new text begin (i) "Metropolitan county" has the meaning given in section 473.121, subdivision 4.
new text end

new text begin (j) "Park" means a park of regional significance located entirely outside of a metropolitan
county that meets at least three of the criteria specified in items 1, 2, and 4 to 6 in the
Department of Natural Resources Parks and Trails Legacy Plan dated February 14, 2011,
required by Laws 2009, chapter 172, article 3, section 2, paragraph (e).
new text end

new text begin (k) "Political subdivision" means a county located in Minnesota or a statutory or home
rule charter city located in Minnesota.
new text end

new text begin (l) "Prevailing wage rate" has the meaning given in section 177.42, subdivision 6.
new text end

new text begin (m) "Regional community center" means a structure that is expressly designed and
constructed for the purposes of recreational, cultural, educational, or public group activities,
or for civic engagement or social support, serving both residents and nonresidents of the
community.
new text end

new text begin (n) "Regional sports complex" means a defined area of sports pavilions, stadiums,
gymnasiums, swimming pools, or similar facilities where regional tournaments may be
hosted, and where members of the public engage in physical exercise, participate in athletic
competitions, witness sporting events, and host regional tournaments.
new text end

new text begin (o) "Specified capital project" means an airport, convention center, correctional facility,
district court, law enforcement center, library, park, regional community center, regional
sports complex, or trail.
new text end

new text begin (p) "Trail" means:
new text end

new text begin (1) a trail of regional significance located entirely outside of a metropolitan county that
meets at least three of the criteria specified in items 1 to 5 in the Department of Natural
Resources Parks and Trails Legacy Plan dated February 14, 2011, required by Laws 2009,
chapter 172, article 3, section 2, paragraph (e); or
new text end

new text begin (2) a nonstate designated regional or state trail that provides at least an hour of outdoor
recreation opportunity or connects to other facilities that can provide at least an hour of
recreation in total:
new text end

new text begin (i) for which the trail or trail extension connects to regional defined assets including a
regionally designated park or higher education institution;
new text end

new text begin (ii) is included in a regional or community trail system plan; or
new text end

new text begin (iii) connects spaces of 25 acres to other trails or commercial areas.
new text end

new text begin Subd. 2. new text end

new text begin Policy; requirements. new text end

new text begin It is the public policy of the state of Minnesota that local
sales taxes are to be used instead of traditional local revenues only for construction and
rehabilitation of capital projects when a clear regional benefit beyond the taxing jurisdiction
can be demonstrated. Capital projects funded by local sales taxes must serve a regional
population, provide economic development benefits and opportunities, or draw individuals
to the region. If charged, access fees for the use of capital projects funded by a local sales
tax must be equal for residents and nonresidents of the taxing jurisdiction. Use of local sales
tax revenues for local projects decreases the benefits to taxpayers of the deductibility of
local property taxes and the state assistance provided through the property tax refund system
and increases the fiscal inequities between similar communities.
new text end

new text begin Subd. 3. new text end

new text begin Local authorization allowed. new text end

new text begin Notwithstanding section 477A.016, or any other
law or ordinance, a political subdivision may impose, extend, or modify the uses of a local
sales tax to finance a specified capital project without legislative authorization by
demonstrating the regional significance of each specified capital project as provided in
subdivisions 4 and 7 to 9. The authorization under this section applies to an extension to or
modification of a local sales tax authorized under special law or the requirements of section
297A.99.
new text end

new text begin Subd. 4. new text end

new text begin Demonstration of regional benefit; resolution required. new text end

new text begin (a) A political
subdivision seeking to impose a local sales tax must conduct a public hearing to provide
information regarding each specified capital project the political subdivision proposes to
fund with the local sales tax. Notice of the hearing must be provided at least 60 days in
advance of the hearing and must include:
new text end

new text begin (1) the tax rate;
new text end

new text begin (2) a description of each project proposed to be funded by the local sales tax; and
new text end

new text begin (3) the amount of tax revenue that would be used for each project and the estimated time
needed to raise that amount of revenue, inclusive of the amount distributed under subdivision
6, paragraph (a), clause (3), if that option is selected.
new text end

new text begin (b) After conducting the public hearing required under paragraph (a) and before the
governing body of a political subdivision seeks voter approval to impose a local sales tax,
the governing body shall adopt a resolution indicating its approval of the tax. The resolution
must include:
new text end

new text begin (1) the proposed tax rate;
new text end

new text begin (2) a detailed description of no more than three projects to be funded with revenue from
the tax;
new text end

new text begin (3) documentation of the regional significance of each project, including:
new text end

new text begin (i) the share of the economic benefit to or use of each project by persons residing or
businesses located outside of the jurisdiction; and
new text end

new text begin (ii) demonstration that the project meets the requirements of the applicable definitions
in subdivision 1;
new text end

new text begin (4) the amount of local sales tax revenue that would be used for each project and the
estimated time needed to raise that amount of revenue; and
new text end

new text begin (5) the total revenue that will be raised for all projects before the tax expires and the
estimated length of time that the tax will be in effect if all proposed projects are funded.
new text end

new text begin (c) The jurisdiction seeking authority to impose a local sales tax by special law must
submit the resolution and the documentation required under paragraph (b) to the
commissioner pursuant to section 297A.9902.
new text end

new text begin Subd. 5. new text end

new text begin Voter approval required. new text end

new text begin (a) Imposition of a local sales tax under this section
is subject to approval by voters of the political subdivision at a general or special election.
The election must be held within two years of the date the political subdivision receives
approval from the commissioner under section 297A.9902. A political subdivision may
choose to conduct the election at a general or special election held on the first Tuesday after
the first Monday in November. There must be a separate question approving the use of the
tax revenue for each project. A project that is not approved by the voters may not be funded
with the local sales tax revenue. For purposes of this section, "general election" and "special
election" have the meanings given in section 200.02, except that a general election or special
election held under this section must be held on the first Tuesday after the first Monday in
November.
new text end

new text begin (b) Each ballot question presented to voters must include:
new text end

new text begin (1) a description of each specified capital project, including acknowledgment of any
state mandate for a government service that necessitates the construction of the project, if
applicable;
new text end

new text begin (2) acknowledgment that the political subdivision is seeking authorization from voters
to impose the sales tax;
new text end

new text begin (3) the total cost of each capital project, inclusive of the amount required under
subdivision 6, paragraph (a), clause (3);
new text end

new text begin (4) the start date of the project and maximum project cost that may be generated for a
period lasting no longer than 30 years;
new text end

new text begin (5) the tax rate;
new text end

new text begin (6) a statement that by voting "yes" the voter is voting for the tax at the rate specified
in clause (5) to:
new text end

new text begin (i) impose a new local sales tax;
new text end

new text begin (ii) increase a local sales tax; or
new text end

new text begin (iii) extend a local sales tax that would otherwise expire; and
new text end

new text begin (7) in combination with the statement required under clause (6), a statement that by
voting "no" the voter acknowledges that the project subject to approval in the question may
be funded by increased property taxes.
new text end

new text begin Subd. 6. new text end

new text begin Administration; termination. new text end

new text begin (a) The proceeds of the tax must be dedicated
exclusively to payment of the construction and rehabilitation costs and associated bonding
costs related to the specified capital projects approved by the voters under subdivision 5,
paragraph (a). The political subdivision must not commingle revenue from a tax approved
by the voters under this section with revenue from a local sales tax authorized under section
297A.99 or any other law, ordinance, city charter, or other provision, including an extension
of or modification to the uses of a local sales tax for a different project.
new text end

new text begin (b) The political subdivision imposing the tax must notify the commissioner at least 60
days before the date the political subdivision anticipates that revenues raised from the tax
are sufficient to fund the projects approved by the voters under subdivision 5, paragraph
(a). The notification applies to each authorization of a tax and each project approved by the
voters under subdivision 5, paragraph (a), regardless of whether the legislature has authorized
the tax notwithstanding the requirements of paragraph (c). The tax must terminate after the
revenues raised are sufficient to fund the projects approved by the voters under subdivision
5, paragraph (a). The political subdivision must notify the commissioner within 30 days of
the date that sufficient revenues have been raised to fund the projects approved by the voters
under subdivision 5, paragraph (a).
new text end

new text begin (c) After a sales tax imposed by a political subdivision has expired or been terminated,
the political subdivision is prohibited from imposing a local sales tax for a period of one
year.
new text end

new text begin (d) If a tax is terminated because sufficient revenues have been raised, any amount of
tax collected after sufficient revenues have been raised and before the quarterly termination
required under section 297A.99, subdivision 12, paragraph (a), that is greater than the
average quarterly revenues collected over the immediately preceding 12 calendar months,
must be retained by the commissioner for deposit in the general fund.
new text end

new text begin Subd. 7. new text end

new text begin Regional sports complexes; regional community centers. new text end

new text begin To impose a local
sales tax to fund construction or remodeling of or improvements to a regional sports complex
or regional community center, a political subdivision must:
new text end

new text begin (1) conduct an analysis of the surrounding region to demonstrate that there is no similar
regional sports complex or regional community center open to nonresidents at the same
cost as to residents;
new text end

new text begin (2) obtain resolutions adopted by at least two adjacent counties, or adjacent statutory or
home rule charter cities or townships affirming there is a regional need for the regional
sports complex or regional community center. A county in which a statutory or home rule
charter city or a township is located and a statutory or home rule charter city or a township
located within a county qualifies as "adjacent" for purposes of this clause; or
new text end

new text begin (3) develop and present a model for the sharing of local sales tax revenues with
surrounding counties, statutory or home rule charter cities, or townships for projects that
meet needs of the counties, statutory or home rule charter cities, or townships.
new text end

new text begin Subd. 8. new text end

new text begin Criminal justice facilities. new text end

new text begin (a) To impose a local sales tax to fund construction
or remodeling of or improvements to a correctional facility, a political subdivision must
demonstrate the need for the facility by providing:
new text end

new text begin (1) official documentation of the age of the facility; and
new text end

new text begin (2)(i) official correspondence from the Department of Corrections that includes an
analysis of the facility and description of the improvements or updates needed; or
new text end

new text begin (ii) if the facility is a joint project between two or more counties, the joint powers
agreement or other official documentation between at least one other county demonstrating
that the facility will serve public safety functions for the region.
new text end

new text begin (b) To impose a local sales tax to fund construction or remodeling of or improvements
to a district court office, a political subdivision must demonstrate the need for the facility
by providing the age of the facility and a description of improvements needed.
new text end

new text begin (c) To impose a local sales tax to fund construction or remodeling of or improvements
to a law enforcement center, a political subdivision must provide resolutions from
surrounding counties, statutory or home rule charter cities, or townships affirming that the
functions of the law enforcement center will meet the needs of the surrounding county,
statutory or home rule charter city, or township.
new text end

new text begin Subd. 9. new text end

new text begin Convention centers; airports; parks and trails. new text end

new text begin (a) To impose a local sales
tax to finance construction or remodeling of or improvements to a convention center, a
political subdivision must demonstrate that the convention center meets the requirements
of subdivision 1, paragraph (c).
new text end

new text begin (b) To impose a local sales tax to finance construction or remodeling of or improvements
to an airport, a political subdivision must demonstrate the regional necessity of the airport.
new text end

new text begin (c) To impose a local sales tax to finance construction of or improvements to a park, a
political subdivision must demonstrate how the project meets the criteria described in
subdivision 1, paragraph (h).
new text end

new text begin (d) To impose a local sales tax to finance construction of or improvements to a trail, a
political subdivision must demonstrate how the project meets the criteria described in
subdivision 1, paragraph (n).
new text end

new text begin Subd. 10. new text end

new text begin Other provisions apply. new text end

new text begin (a) The provisions of section 297A.99, subdivisions
4 to 13, apply to taxes authorized under this subdivision.
new text end

new text begin (b) The prevailing wage rate applies to all contracts for construction of specified capital
projects under this section that are located in a metropolitan county.
new text end

new text begin (c) The total tax rate imposed by a political subdivision under this section and section
297A.99 must not exceed one percent. If a local sales tax is imposed by a county, the limit
under this paragraph includes any tax authorized under section 297A.993.
new text end

new text begin (d) The maximum collection period for a tax imposed under this section is the earlier
of the amount of time necessary to collect the revenue equal to the cost of the specified
capital projects approved by the voters, including as associated bonding costs, or 30 years.
new text end

new text begin Subd. 11. new text end

new text begin Bonds; authorization. new text end

new text begin (a) A political subdivision may issue bonds under
chapter 475 to finance all or a portion of the costs of a specified capital project. The aggregate
principal amount of bonds issued must not exceed the cost of a qualifying capital project
approved by the voters, plus associated bonding costs. The bonds may be paid from or
secured by any funds available to the political subdivision, including the tax authorized
under this section and approved by the voters. The issuance of bonds under this subdivision
is not subject to sections 275.60 and 275.61.
new text end

new text begin (b) A separate election to approve the bonds under section 475.58 is not required.
new text end

new text begin Subd. 12. new text end

new text begin Filing and imposition requirements. new text end

new text begin (a) A political subdivision that has
received approval to impose a tax from the commissioner under this section must file a
certificate of local approval with the secretary of state within 60 days after receiving voter
approval for the tax to be lawfully imposed. If the tax is approved by the voters, the political
subdivision must impose the tax within 15 months of receiving the voter approval. If the
tax is not imposed within 15 months, the authority to impose the tax under this section
expires.
new text end

new text begin (b) If, after receiving voter approval, a political subdivision cancels a project approved
by the voters, the political subdivision must notify the commissioner. The commissioner
must proportionately decrease the maximum amount of tax revenue the political subdivision
may collect and must adjust the termination of the tax accordingly. If the political subdivision
has already collected revenue for the canceled project, the political subdivision must return
the funds to the commissioner for deposit to the general fund. The political subdivision
must use any other source of revenue available to pay any outstanding debt on the bonds
that were issued for the canceled project.
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.

new text begin [297A.9902] LOCAL SALES TAXES; OVERSIGHT.
new text end

new text begin (a) A political subdivision seeking to impose a local sales tax under the provisions of
section 297A.9901 must file a copy of the resolution and documentation required under
section 297A.9901, subdivision 4, paragraph (b), with the commissioner by October 31 of
the year before the political subdivision seeks voter approval of the tax.
new text end

new text begin (b) The commissioner must verify whether a project included in the submission under
paragraph (a) meets the requirements of section 297A.9901, subdivisions 1 to 9, and
subdivision 10, paragraph (c). By January 10 of the year the political subdivision seeks
voter approval of a local sales tax authorized under section 297A.9901, the commissioner
must notify the political subdivision of the commissioner's determination.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2023 Supplement, section 297A.99, subdivision 3a, 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 7

PUBLIC FINANCE

Section 1.

Minnesota Statutes 2022, section 123B.71, subdivision 8, is amended to read:

Subd. 8.

Review and comment.

A school district, a special education cooperative, or
a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not
deleted text begin initiatedeleted text end new text begin enter intonew text end an installment contract for purchase or a lease agreement, hold a referendum
for bonds, nor solicit bids for new construction, expansion, or remodeling of an educational
facility that requires an expenditure in excess of $500,000 per school site if it has a capital
loan outstanding, or $2,000,000 per school site if it does not have a capital loan outstanding,
prior to review and comment by the commissioner. deleted text begin A facility addition, maintenance project,
or remodeling projectdeleted text end new text begin New construction, expansion, or remodeling of an educational facilitynew text end
funded only with general education revenue, lease levy proceedsnew text begin from an additional capital
expenditure levy under section 126C.40, subdivision 1new text end , capital facilities bond proceeds, or
long-term facilities maintenance revenue is exempt from this provision. A capital project
under section 123B.63 addressing only technology is exempt from this provision if the
district submits a school board resolution stating that funds approved by the voters will be
used only as authorized in section 126C.10, subdivision 14. A school board shall not separate
portions of a single project into components to avoid the requirements of this subdivision.

Sec. 2.

Minnesota Statutes 2023 Supplement, section 123B.71, subdivision 12, is amended
to read:

Subd. 12.

Publication.

(a) At least 48 days but not more than deleted text begin 60deleted text end new text begin 88new text end days before a
referendum for bondsnew text begin under chapter 475new text end or solicitation of bids for a project that has received
a positive or unfavorable review and comment under section 123B.70, the school board
shall publish a summary of the commissioner's review and comment of that project in the
legal newspaper of the district. The school board must hold a public meeting to discuss the
commissioner's review and comment before deleted text begin thedeleted text end new text begin such anew text end referendum for bonds. Supplementary
information shall be available to the public.new text begin Where no such referendum for bonds is required,
the publication and public meeting requirements of this subdivision shall not apply.
new text end

(b) The publication requirement in paragraph (a) does not apply to alternative facilities
projects approved under section 123B.595.

Sec. 3.

Minnesota Statutes 2023 Supplement, section 126C.40, subdivision 6, is amended
to read:

Subd. 6.

Lease purchase; installment buys.

(a) Upon application to, and approval by,
the commissioner in accordance with the procedures and limits in subdivision 1, paragraphs
(a) and (b), a district, as defined in this subdivision, may:

(1) purchase real or personal property under an installment contract or may lease real
or personal property with an option to purchase under a lease purchase agreement, by which
installment contract or lease purchase agreement title is kept by the seller or vendor or
assigned to a third party as security for the purchase price, including interest, if any; and

(2) annually levy the amounts necessary to pay the district's obligations under the
installment contract or lease purchase agreement.

(b) The obligation created by the installment contract or the lease purchase agreement
must not be included in the calculation of net debt for purposes of section 475.53, and does
not constitute debt under other law. An election is not required in connection with the
execution of the installment contract or the lease purchase agreement.

(c) The proceeds of the levy authorized by this subdivision must not be used to acquire
a facility to be primarily used for athletic or school administration purposes.

(d) For the purposes of this subdivision, "district" means:

(1) Special School District No. 1, Minneapolis, Independent School District No. 625,
St. Paul, Independent School District No. 709, Duluth, or Independent School District No.
535, Rochester, if the district's desegregation plan has been determined by the commissioner
to be in compliance with Department of Education rules relating to equality of educational
opportunity and where the acquisition of property under this subdivision is determined by
the commissioner to contribute to the implementation of the desegregation plan; or

(2) other districts eligible for revenue under section 124D.862 if the facility acquired
under this subdivision is to be primarily used for a joint program for interdistrict
desegregation and the commissioner determines that the joint programs are being undertaken
to implement the districts' desegregation plan.

(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
or rent a district-owned building to itself does not apply to levies otherwise authorized by
this subdivision.

(f) For the purposes of this subdivision, any references in subdivision 1 to building or
land shall include personal property.

(g) Projects funded under this subdivisionnew text begin that require an expenditure in excess of
$500,000 per school site if the school district has a capital loan outstanding, or $2,000,000
per school site if the school district does not have a capital loan outstanding,new text end are subject to
review and comment under section 123B.71, subdivision 8, in the same manner as other
school construction projects.

Sec. 4.

Minnesota Statutes 2022, section 446A.086, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) As used in this section, the following terms have the
meanings given.

(b) "Authority" means the Minnesota Public Facilities Authority.

(d) "Debt obligation" means:

(1) a general obligation bond or note issued by a county, a bond or note to which the
general obligation of a county is pledged under section 469.034, subdivision 2, or a bond
or note payable from a county lease obligation under section 641.24, to provide funds for
the construction of:

(i) jails;

(ii) correctional facilities;

(iii) law enforcement facilities;

new text begin (iv) a court house or justice center, if connected to a jail, correctional facility, or other
law enforcement facility;
new text end

deleted text begin (iv)deleted text end new text begin (v)new text end social services and human services facilities;

deleted text begin (v)deleted text end new text begin (vi)new text end solid waste facilities; or

deleted text begin (vi)deleted text end new text begin (vii)new text end qualified housing development projects as defined in section 469.034,
subdivision 2; or

(2) a general obligation bond or note issued by a governmental unit to provide funds for
the construction, improvement, or rehabilitation of:

(i) wastewater facilities;

(ii) drinking water facilities;

(iii) stormwater facilities; or

(iv) any publicly owned building or infrastructure improvement that has received partial
funding from grants awarded by the commissioner of employment and economic development
related to redevelopment, contaminated site cleanup, bioscience, small cities development
programs, and rural business infrastructure programs, for which bonds are issued by the
authority under section 446A.087.

(e) "Governmental unit" means a county or a statutory or home rule charter city.

Sec. 5.

Minnesota Statutes 2022, section 469.104, is amended to read:

469.104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES.

Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.090 to
469.108 that are deleted text begin limiteddeleted text end new text begin requirednew text end by federal tax law as defined in section 474A.02,
subdivision 8new text begin , to obtain an allocation of volume capnew text end .

Sec. 6.

Minnesota Statutes 2022, section 473.757, subdivision 10, is amended to read:

Subd. 10.

Sales and use tax.

(a) Notwithstanding section 477A.016, or other law, the
governing body of the county may by ordinance, impose a sales and use tax at the rate of
0.15 percent for the purposes listed in this section. The taxes authorized under this section
and the manner in which they are imposed are exempt from the rules of section 297A.99,
subdivisions 2 and 3. The provisions of section 297A.99, except for subdivisions 2 and 3,
apply to the imposition, administration, collection, and enforcement of this tax.

(b) The tax imposed under this section is not included in determining if the total tax on
lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.

new text begin (c) The requirements of sections 297A.9901 and 297A.9902 do not apply to taxes
authorized under this chapter.
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. 7.

Minnesota Statutes 2022, section 474A.091, subdivision 2, is amended to read:

Subd. 2.

Application for residential rental projects.

(a) Issuers may apply for an
allocation for residential rental bonds under this section by submitting to the department an
application on forms provided by the department accompanied by:

(1) a preliminary resolution;

(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code;

(3) an application deposit in the amount of two percent of the requested allocation;

(4) a sworn statement from the applicant identifying the project as a preservation project,
30 percent AMI residential rental project, 50 percent AMI residential rental project, 100
percent LIHTC project, 20 percent LIHTC project, or any other residential rental project;
and

(5) a certification from the applicant or its accountant stating that the requested allocation
does not exceed the aggregate bond limitation.

The issuer must pay the application deposit to the Department of Management and Budget.
An entitlement issuer may not apply for an allocation for residential rental project bonds
under this section unless it has either permanently issued bonds equal to the amount of its
entitlement allocation for the current year plus any amount carried forward from previous
years or returned for reallocation all of its unused entitlement allocation. For purposes of
this subdivision, its entitlement allocation includes an amount obtained under section
474A.04, subdivision 6.

(b) An issuer that receives an allocation under this subdivision must permanently issue
obligations equal to all or a portion of the allocation received on or beforenew text begin the earlier of:
(1)new text end 180 days of the allocationnew text begin ; or (2) the last business day of Decembernew text end . If an issuer that
receives an allocation under this subdivision does not permanently issue obligations equal
to all or a portion of the allocation received within the time period provided in this paragraph
or returns the allocation to the commissioner, the amount of the allocation is canceled and
returned for reallocation through the unified pool.

(c) The Minnesota Housing Finance Agency may apply for and receive an allocation
under this section without submitting an application deposit.

Sec. 8.

Minnesota Statutes 2022, section 474A.091, subdivision 2a, is amended to read:

Subd. 2a.

Application for all other types of qualified bonds.

(a) Issuers may apply
for an allocation for all types of qualified bonds other than residential rental bonds under
this section by submitting to the department an application on forms provided by the
department accompanied by:

(1) a preliminary resolution;

(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code;

(3) the type of qualified bonds to be issued;

(4) an application deposit in the amount of two percent of the requested allocation; and

(5) a public purpose scoring worksheet for manufacturing and enterprise zone
applications.

The issuer must pay the application deposit to the Department of Management and Budget.
An entitlement issuer may not apply for an allocation for public facility bonds or mortgage
bonds under this section unless it has either permanently issued bonds equal to the amount
of its entitlement allocation for the current year plus any amount carried forward from
previous years or returned for reallocation all of its unused entitlement allocation. For
purposes of this subdivision, an entitlement allocation includes an amount obtained under
section 474A.04, subdivision 6.

(b) An issuer that receives an allocation under this subdivision must permanently issue
obligations equal to all or a portion of the allocation received on or beforenew text begin the earlier of:
(1)new text end 120 days of the allocationnew text begin ; or (2) the last business day of Decembernew text end . If an issuer that
receives an allocation under this subdivision does not permanently issue obligations equal
to all or a portion of the allocation received within the time period provided in this paragraph
or returns the allocation to the commissioner, the amount of the allocation is canceled and
returned for reallocation through the unified pool.

(c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision,
the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
under this section prior to the first Monday in October, but may be awarded allocations for
mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota
Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota
Rural Finance Authority may apply for and receive an allocation under this section without
submitting an application deposit.

ARTICLE 8

MISCELLANEOUS

Section 1.

Minnesota Statutes 2022, section 270C.21, is amended to read:

270C.21 TAXPAYER ASSISTANCE GRANTSnew text begin ; TAX CREDIT OUTREACH
GRANTSnew text end .

Subdivision 1.

Taxpayer assistance.

When the commissioner awards grants deleted text begin to eligible
organizations to coordinate, facilitate, encourage, and aid in the provision of taxpayer
assistance servicesdeleted text end new text begin under this sectionnew text end , the commissioner must provide public notice of the
grants in a timely manner so that the grant process is completed and grants are awarded by
October 1, in order for recipient deleted text begin eligibledeleted text end organizations to adequately plan expenditures for
the filing season. At the time the commissioner provides public notice, the commissioner
must also notify deleted text begin eligibledeleted text end organizations that received grants in the previous biennium.new text begin Amounts
appropriated for grants under this section are not subject to retention of administrative costs
under section 16B.98, subdivision 14.
new text end

Subd. 2.

deleted text begin Eligible organizationdeleted text end new text begin Definitionsnew text end .

deleted text begin "Eligible organization" means an organization
that meets the definition of eligible organization provided in section 7526A(e)(2)(B) of the
Internal Revenue Code.
deleted text end

new text begin (a) For the purposes of this section, the following terms have the meanings given.
new text end

new text begin (b) "Eligible credit" means a credit, refund, or other tax preference targeting low-income
taxpayers, including but not limited to the credits under sections 290.0661, 290.0671,
290.0674, and 290.0693, and chapter 290A.
new text end

new text begin (c) "Tax outreach organization" means a nonprofit organization or federally recognized
Indian Tribe with experience serving demographic groups or geographic regions that have
historically had low rates of participation in eligible credits.
new text end

new text begin (d) "Taxpayer assistance services" means accounting and tax preparation services
provided by volunteers to low-income, elderly, and disadvantaged Minnesota residents to
help them file federal and state income tax returns and Minnesota property tax refund claims
and to provide personal representation before the Department of Revenue and Internal
Revenue Service.
new text end

new text begin (e) "Volunteer taxpayer assistance organization" means an eligible organization qualifying
under section 7526A(e)(2)(B) of the Internal Revenue Code of 1986.
new text end

new text begin Subd. 3. new text end

new text begin Taxpayer assistance grants. new text end

new text begin The commissioner must make grants to one or
more volunteer taxpayer assistance organizations to coordinate, facilitate, encourage, and
aid in the provision of taxpayer assistance services.
new text end

new text begin Subd. 4. new text end

new text begin Tax credit outreach grants. new text end

new text begin The commissioner must make one or more grants
to tax outreach organizations and volunteer assistance organizations. Grants provided under
this subdivision must be used to:
new text end

new text begin (1) publicize and promote the availability of eligible credits to taxpayers likely to be
eligible for those credits; or
new text end

new text begin (2) provide taxpayer assistance services.
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 2022, section 270C.33, is amended by adding a subdivision to
read:

new text begin Subd. 4a. new text end

new text begin Limitations; sales, corporate, and income taxes. new text end

new text begin (a) The provisions of this
subdivision are a limitation on the assessment authority of the commissioner under this
section.
new text end

new text begin (b) The commissioner must not assess additional tax due under chapter 290 or 297A if
each of the following requirements are met:
new text end

new text begin (1) the taxpayer was given erroneous advice in writing by an employee of the department
acting in an official capacity, if the advice:
new text end

new text begin (i) was reasonably relied on and was included in a tax order or in response to a specific
written request by the taxpayer; and
new text end

new text begin (ii) was not the result of failure by the taxpayer to provide adequate or accurate
information; and
new text end

new text begin (2) effective for a taxable period beginning after the period covered by clause (1), neither
the statute or administrative rule on which the reporting or other practice is based has been
materially changed, its interpretation has not been changed by a court decision, or there has
been a federal adjustment as defined under section 289A.381, subdivision 7, and the
commissioner has not issued a revenue notice or directly notified the taxpayer, in writing,
of the commissioner's position as to the proper reporting or other treatment of the relevant
income, transaction, deduction, credit, or other item of tax preference.
new text end

new text begin (c) For an audit of a prior taxable period by the commissioner, paragraph (b), clause (1),
applies only to the issues within the scope of and specifically addressed by the audit where
the written order given to the taxpayer includes erroneous advice on those issues. For a
written order that includes data sampling, paragraph (b), clause (1), applies only to the
reviewed sampled population.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for erroneous advice given to the taxpayer
in writing after June 30, 2024.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 297H.13, subdivision 2, is amended
to read:

Subd. 2.

Allocation of revenues.

(a) Of the amounts remitted under this chapter, 70
percent must be credited to the environmental fund established in section 16A.531,
subdivision 1.

(b) In addition to the amounts credited to the environmental fund in paragraph (a), deleted text begin in
fiscal year 2024 and later,deleted text end three percent of the amounts remitted under this chapter shall be
deposited into the resource management account in the environmental fund.new text begin For fiscal year
2025 only, an additional $3,252,000 must be deposited in the resource management account
in the environmental fund.
new text end

(d) deleted text begin Beginning in fiscal year 2024 and annually thereafter,deleted text end The money deposited in the
resource management account in the environmental fund under paragraph (b) is appropriated
to the commissioner of the Pollution Control Agency for distribution to counties under
section 115A.557, subdivision 2, paragraph (a), clauses (1) to (7) and (9) to (11).new text begin Amounts
appropriated for distribution under this section are not subject to retention of administrative
costs under section 16B.98, subdivision 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 4. new text begin HENNEPIN COUNTY BASEBALL STADIUM TAX; REVIEW AND
EVALUATION.
new text end

new text begin (a) The commissioner of revenue must review and evaluate the provisions of Minnesota
Statutes, sections 473.75 to 473.763, to determine whether the tax authorized under Minnesota
Statutes, section 473.757, subdivision 10, should be extended to fund purposes other than
those included in Minnesota Statutes, section 473.757, subdivision 11.
new text end

new text begin (b) The review and evaluation must include possible distribution of revenues to fund
improvements to hospitals located in Hennepin County and the need for continued operating
costs to and improvements to public infrastructure of the ballpark, as defined under Minnesota
Statutes, section 473.751, subdivision 3.
new text end

new text begin (c) In performing the requirements of paragraphs (a) and (b), the commissioner of revenue
must consult with:
new text end

new text begin (1) the Hennepin County Board of Commissioners;
new text end

new text begin (2) members of the senate and house of representatives whose districts include areas
both within and outside Hennepin County;
new text end

new text begin (3) the Minnesota Ballpark Authority, as defined under Minnesota Statutes, section
473.751, subdivision 2;
new text end

new text begin (4) the team, as defined under Minnesota Statutes, section 473.751, subdivision 9; and
new text end

new text begin (5) members of the boards of directors of hospitals located within Hennepin County.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin APPROPRIATION; CITY OF SOUTH ST. PAUL; GRANT.
new text end

new text begin (a) $250,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
of revenue for a grant to the city of South St. Paul. This is a onetime appropriation. The
grant must be paid by June 30, 2024. The grant under this section is not subject to retention
of administrative costs under Minnesota Statutes, section 16B.98, subdivision 14.
new text end

new text begin (b) The grant under this section must be used by the city of South St. Paul to pay for
planning and development costs within the city.
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. new text begin APPROPRIATION; TAX CREDIT OUTREACH GRANTS; TAXPAYER
ASSISTANCE GRANTS.
new text end

new text begin (a) $1,000,000 in fiscal year 2025 is appropriated from the general fund to the
commissioner of revenue for tax credit outreach grants under Minnesota Statutes, section
270C.21, subdivision 4. This appropriation is in addition to the amount appropriated in
Laws 2023, chapter 64, article 7, section 30.
new text end

new text begin (b) The base for the $1,000,000 appropriation in paragraph (a) is $1,044,000 in fiscal
year 2026 and $1,045,000 in fiscal year 2027.
new text end

new text begin (c) $750,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of revenue for taxpayer assistance grants under Minnesota Statutes, section 270C.21,
subdivision 3. This appropriation is in addition to the amount appropriated for taxpayer
assistance in Laws 2023, chapter 62, article 1, section 14, subdivision 2.
new text end

ARTICLE 9

DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND CORPORATE
FRANCHISE TAXES

Section 1.

Minnesota Statutes 2022, section 116U.27, subdivision 2, is amended to read:

Subd. 2.

Credit allowed.

A taxpayer is eligible for a credit up to 25 percent of eligible
production costs paid in deleted text begin a taxable yeardeleted text end new text begin any consecutive 12-month period as described in
subdivision 1, paragraph (h)new text end . A taxpayer may only claim a credit if the taxpayer was issued
a credit certificate under subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 290.01, subdivision 19, is amended
to read:

Subd. 19.

Net income.

(a) For a trust or estate taxable under section 290.03, and a
corporation taxable under section 290.02, 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.

(b) For an individual, the term "net income" means federal adjusted gross income with
the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.

(c) 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.

(d) 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.

(e) 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.

(f) The Internal Revenue Code of 1986, as amended through May 1, 2023, applies for
taxable years beginning after December 31, 1996.

(g) 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.

(h) In the case of a partnership electing to file a composite return under section 289A.08,
subdivision 7, "net income" means the partner's share of federal adjusted gross income from
the partnership modified by the additions provided in section 290.0131, subdivisions 8 to
10, 16, and 17, and the subtractions provided in: (1) section 290.0132, subdivisions 9, 27,
deleted text begin anddeleted text end 28,new text begin and 31,new text end to the extent the amount is assignable or allocable to Minnesota under section
290.17; and (2) section 290.0132, subdivision 14. The subtraction allowed under section
290.0132, subdivision 9, is only allowed on the composite tax computation to the extent
the electing partner would have been allowed the subtraction.

(i) In the case of a qualifying entity electing to pay the pass-through entity tax under
section 289A.08, subdivision 7a, "net income" means the qualifying owner's share of federal
adjusted gross income from the qualifying entity modified by the additions provided in
section 290.0131, subdivisions 5, 8 to 10, 16, and 17, and the subtractions provided in: (1)
section 290.0132, subdivisions 3, 9, 27, deleted text begin anddeleted text end 28,new text begin and 31,new text end to the extent the amount is assignable
or allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14.
The subtraction allowed under section 290.0132, subdivision 9, is only allowed on the
pass-through entity tax computation to the extent the qualifying owners would have been
allowed the subtraction. deleted text begin The income of both a resident and nonresident qualifying owner
is allocated and assigned to this state as provided for nonresident partners and shareholders
under sections 290.17, 290.191, and 290.20.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 290.0132, subdivision 26, is amended
to read:

Subd. 26.

Social Security benefits.

(a) A taxpayer is allowed a subtraction equal to the
greater of the simplified subtraction allowed under paragraph (b) or the alternate subtraction
determined under paragraph (e).

(b) A taxpayer's simplified subtraction equals the amount of taxable social security
benefits, as reduced under paragraphs (c) and (d).

(c) For a taxpayer other than a married taxpayer filing a separate return with adjusted
gross income above the phaseout threshold, the simplified subtraction is reduced by ten
percent for each $4,000 of adjusted gross income, or fraction thereof, in excess of the
phaseout threshold. The phaseout threshold equals:

(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;

(2) $78,000 for a single or head of household taxpayer; and

(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
filing a joint return.

(d) For a married taxpayer filing a separate return, the simplified subtraction is reduced
by ten percent for each $2,000 of adjusted gross income, or fraction thereof, in excess of
the phaseout threshold.

(e) A taxpayer's alternate subtraction equals the lesser of taxable Social Security benefits
or a maximum subtraction subject to the limits under paragraphs (f), (g), and (h).

(f) For married taxpayers filing a joint return and surviving spouses, the maximum
subtraction under paragraph deleted text begin (c)deleted text end new text begin (e)new text end equals $5,840. The maximum subtraction is reduced by
20 percent of provisional income over $88,630. In no case is the subtraction less than zero.

(g) For single or head-of-household taxpayers, the maximum subtraction under paragraph
deleted text begin (c)deleted text end new text begin (e)new text end equals $4,560. The maximum subtraction is reduced by 20 percent of provisional
income over $69,250. In no case is the subtraction less than zero.

(h) For married taxpayers filing separate returns, the maximum subtraction under
paragraph deleted text begin (c)deleted text end new text begin (e)new text end equals one-half the maximum subtraction for joint returns under paragraph
(f). The maximum subtraction is reduced by 20 percent of provisional income over one-half
the threshold amount specified in paragraph (d). In no case is the subtraction less than zero.

(i) For purposes of this subdivision, "provisional income" means modified adjusted gross
income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of the
taxable Social Security benefits received during the taxable year, and "Social Security
benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code.

(j) The commissioner shall adjust the phaseout threshold amounts in paragraphs (c) deleted text begin and
(d)deleted text end new text begin , clauses (1) and (2),new text end as provided in section 270C.22. The statutory year is taxable year
2023. The maximum subtraction and threshold amounts 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 retroactively for taxable years beginning
after December 31, 2022.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 290.0132, subdivision 34, is amended
to read:

Subd. 34.

Qualified retirement benefits.

(a) The amount of qualified public pension
income is a subtraction. The subtraction in this section is limited to:

(1) $25,000 for a married taxpayer filing a joint return or surviving spouse; or

(2) $12,500 for all other filers.

(b) For a taxpayer with adjusted gross income above the phaseout threshold, the
subtraction is reduced by ten percent for each $2,000 of adjusted gross income, or fraction
thereof, in excess of the threshold. The phaseout threshold equals:

(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;

(2) $78,000 for a single or head of household taxpayer; or

(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
filing a joint return.

(1) by a former basic member or the survivor of a former basic member, as an annuity
or survivor benefit, from a pension plan governed by chapter 353, 353E, 354, or 354A,
provided that the annuity or benefit is based on service for which the member or survivor
deleted text begin is not also receivingdeleted text end new text begin did not earnnew text end Social Security benefits;

(2) as an annuity or survivor benefit from the legislators plan under chapter 3A, the State
Patrol retirement plan under chapter 352B, or the public employees police and fire plan
under sections 353.63 to 353.666, provided that the annuity or benefit is based on service
for which the member or survivor deleted text begin is not also receivingdeleted text end new text begin did not earnnew text end Social Security benefits;

(3) from any retirement system administered by the federal government that is based on
service for which the recipient or the recipient's survivor deleted text begin is not also receivingdeleted text end new text begin did not earnnew text end
Social Security benefits; or

(4) from a public retirement system of or created by another state or any of its political
subdivisions, or the District of Columbia, if the income tax laws of the other state or district
permit a similar deduction or exemption or a reciprocal deduction or exemption of a
retirement or pension benefit received from a public retirement system of or created by this
state or any political subdivision of this state.

(d) The commissioner must annually adjust the subtraction limits in paragraph (a) and
the phaseout thresholds in paragraph (b), as provided in section 270C.22. The statutory year
is taxable year 2023.

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 2023 Supplement, section 290.0134, subdivision 20, is amended
to read:

Subd. 20.

Delayed business interest.

(a) For each taxable year an addition is required
under section deleted text begin 290.0131, subdivision 19deleted text end new text begin 290.0133, subdivision 15new text end , the amount of the addition,
less the sum of all amounts subtracted under this paragraph in all prior taxable years, that
does not exceed the limitation on business interest in section 163(j) of the Internal Revenue
Code of 1986, as amended through December 15, 2022, notwithstanding the special rule in
section 163(j)(10) of the Internal Revenue Code, is a subtraction. Any excess is a delayed
business interest carryforward, the entire amount of which must be carried to the earliest
taxable year. No subtraction is allowed under this paragraph for taxable years beginning
after December 31, 2022.

(b) For each of the five taxable years beginning after December 31, 2022, there is allowed
a subtraction equal to one-fifth of the sum of all carryforward amounts that remain after the
expiration of paragraph (a).

(c) Entities that are part of a combined reporting group under the unitary rules of section
290.17, subdivision 4, must compute deductions and additions as required under section
290.34, subdivision 5.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given.

(b) "Dependent" means any individual who is considered a dependent under sections
151 and 152 of the Internal Revenue Codenew text begin and was claimed by the taxpayer as a dependentnew text end .

(d) "Exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b).

(e) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a
homestead, exclusive of charges for any medical services furnished by the landlord as a
part of the rental agreement, whether expressly set out in the rental agreement or not. The
gross rent of a resident of a nursing home or intermediate care facility is $600 per month.
The gross rent of a resident of an adult foster care home is $930 per month. The commissioner
shall annually adjust the amounts in this paragraph as provided in section 270C.22. The
statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's
length and the commissioner determines that the gross rent charged was excessive, the
commissioner may adjust the gross rent to a reasonable amount for purposes of this section.

(f) "Homestead" has the meaning given in section 290A.03, subdivision 6.

(g) "Household" has the meaning given in section 290A.03, subdivision 4.

(h) "Household income" means all income received by all persons of a household in a
taxable year while members of the household, other than income of a dependent.

(i) "Income" means adjusted gross income, minus:

(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;

(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;

(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;

(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;

(5) for the taxpayer's fifth dependent, the exemption amount; and

(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or
before the close of the taxable year, the exemption amount.

(j) "Rent constituting property taxes" means 17 percent of the gross rent actually paid
in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any taxable
year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the
taxable year, and which rent constitutes the basis, in the succeeding taxable year of a claim
for a credit under this section by the claimant. If an individual occupies a homestead with
another person or persons not related to the individual as the individual's spouse or as
dependents, and the other person or persons are residing at the homestead under a rental or
lease agreement with the individual, the amount of rent constituting property tax for the
individual equals that portion not covered by the rental agreement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2023.
new text end

Sec. 7.

Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 6, is amended
to read:

Subd. 6.

Residents of nursing homes, intermediate care facilities, long-term care
facilities, or facilities accepting housing support payments.

(a) A taxpayer must not claim
a credit under this section if the taxpayer is a resident of a nursing home, intermediate care
facility, long-term residential facility, or a facility that accepts housing support payments
whose rent constituting property taxes is paid pursuant to the Supplemental Security Income
program under title XVI of the Social Security Act, the Minnesota supplemental aid program
under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
of the Social Security Act, or the housing support program under chapter 256I.

(b) If only a portion of the rent constituting property taxes is paid by these programs,
the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction,
the numerator of which is adjusted gross income, deleted text begin reduced by the total amount of income
from the above sources other than vendor payments under the medical assistance programdeleted text end
and the denominator of which is adjusted gross income, plus vendor payments under the
medical assistance program, to determine the allowable credit.

(c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing
home, intermediate care facility, long-term residential facility, or facility for which the rent
was paid for the claimant by the housing support program for only a portion of the taxable
year covered by the claim, the taxpayer may compute rent constituting property taxes by
disregarding the rent constituting property taxes from the nursing home or facility and may
use only that amount of rent constituting property taxes or property taxes payable relating
to that portion of the year when the taxpayer was not in the facility. The taxpayer's household
income is the income for the entire taxable year covered by the claim.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2023.
new text end

Sec. 8.

Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 8, is amended
to read:

Subd. 8.

One claimant per household.

Only one taxpayer per household per year is
entitled to claim a credit under this section.new text begin In the case of a married couple filing a joint
return, the couple may claim a credit under this section based on the total amount of both
spouses' gross rent.new text end In the case of a married taxpayer filing a separate return, only one spouse
may claim the credit under this section. The credit amount for the spouse that claims the
credit must be calculated based on household income and not solely on the income of the
spouse.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2023.
new text end

Sec. 9.

Minnesota Statutes 2023 Supplement, section 290.0695, subdivision 2, is amended
to read:

Subd. 2.

Credit allowed; limitation; carryover.

(a) An eligible taxpayer is allowed a
credit against tax due under this chapter equal to 50 percent of deleted text begin eligible expenses, not to
exceed $3,000 per mile, multiplied by the number of miles of railroad track owned or leased
within the state by the eligible taxpayer for which the taxpayer madedeleted text end new text begin thenew text end qualified railroad
reconstruction or replacement expenditures deleted text begin as of the close of the taxable year for which the
credit is claimeddeleted text end new text begin made by an eligible taxpayer within this state during the taxable year for
which the credit is claimednew text end .

new text begin (b) The credit allowed under paragraph (a) for any taxable year must not exceed the
product of:
new text end

new text begin (1) $3,000, multiplied by;
new text end

new text begin (2) the number of miles of railroad track owned or leased by the eligible taxpayer within
this state as of the close of the taxable year for which the taxpayer made qualified railroad
reconstruction or replacement expenditures for which the credit is claimed.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end If the amount of the credit determined under this section for any taxable year
exceeds the liability for tax under this chapter, the excess is a credit carryover to each of
the five succeeding taxable years. The entire amount of the excess unused credit for the
taxable year must be carried first to the earliest of the taxable years to which the credit may
be carried and then to each successive year to which the credit may be carried. The amount
of the unused credit that may be added under this paragraph must not exceed the taxpayer's
liability for tax less the credit for the taxable year.

deleted text begin (c)deleted text end new text begin (d)new text end An eligible taxpayer claiming a credit under this section may not also claim the
credit under section 297I.20, subdivision 6, for the same qualified railroad reconstruction
or replacement expenditures.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end

Sec. 10.

Laws 2023, chapter 1, section 22, is amended to read:

Sec. 22. TEMPORARY ADDITIONS AND SUBTRACTIONS; INDIVIDUALS,
ESTATES, AND TRUSTS.

(a) For the purposes of this section:

(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132,
subdivision 1, and the rules in that subdivision apply to this section;

(2) "addition" has the meaning given in Minnesota Statutes, section 290.0131, subdivision
1, and the rules in that subdivision apply to this section; and

(3) the definitions in Minnesota Statutes, section 290.01, apply to this section.

(b) The following amounts are subtractions:

(1) the amount of wages used for the calculation of the employee retention credit for
employers affected by qualified disasters, to the extent not deducted from income, under
Public Law 116-94, division Q, section 203, or Public Law 116-260, division EE, section
303;

(2) the amount of wages used for the calculation of the payroll credit for required paid
sick leave, to the extent not deducted from income, under Public Law 116-127, section
7001, as amended by section 9641 of Public Law 117-2;

(3) the amount of wages or expenses used for the calculation of the payroll credit for
required paid family leave, to the extent not deducted from income, under Public Law
116-127, section 7003, as amended by section 9641 of Public Law 117-2;

(4) the amount of wages used for the calculation of the employee retention credit for
employers subject to closure due to COVID-19, to the extent not deducted from income,
under Public Law 116-136, section 2301, as amended by Public Law 116-260, division EE,
section 207, and Public Law 117-2, section 9651; and

(5) the amount required to be added to gross income to claim the credit in section 6432
of the Internal Revenue Code.

(1) the amount subtracted for qualified tuition expenses under section 222 of the Internal
Revenue Code, as amended by Public Law 116-94, division Q, section 104;

(2) the amount of above the line charitable contributions deducted under section 2204
of Public Law 116-136;

(3) the amount of meal expenses in excess of the 50 percent limitation under section
274(n)(1) of the Internal Revenue Code allowed under subsection (n), paragraph (2),
subparagraph (D), of that section; and

(4) the amount of charitable contributions deducted from federal taxable income by a
trust for taxable year 2020 under Public Law 116-136, section 2205(a).

(d) The commissioner of revenue must apply the subtractions in paragraph (b) and the
additions in paragraph (c), when calculating the following:

(1) the percentage under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
(e);

(2) a taxpayer's alternative minimum taxable income under Minnesota Statutes, section
290.091; and

(3) "income" deleted text begin as defined in Minnesota Statutes, section 289A.08, subdivision 7, paragraph
(j),deleted text end for the purposes of determining the tax for composite filers and the pass-through entity
taxnew text begin , means the partner's share of federal adjusted gross income from the partnership modified
by the additions provided in Minnesota Statutes, section 290.0131, subdivisions 8 to 10,
16, 17, and 19, and the subtractions provided in (i) Minnesota Statutes, section 290.0132,
subdivisions 9, 27, and 28, to the extent the amount is assignable or allocable to Minnesota
under Minnesota Statutes, section 290.17; and (ii) Minnesota Statutes, section 290.0132,
subdivision 14. The subtraction allowed under Minnesota Statutes, section 290.0132,
subdivision 9, is only allowed on the composite tax computation to the extent the electing
partner would have been allowed the subtractionnew text end .

(e) For the purpose of calculating property tax refunds under Minnesota Statutes, chapter
290A, any amounts allowed as a subtraction in paragraph (b) are excluded from "income,"
as defined in Minnesota Statutes, section 290A.03, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively at the same time the changes
in Laws 2023, chapter 1, section 22, were effective for federal purposes.
new text end

ARTICLE 10

DEPARTMENT OF REVENUE; PROPERTY TAXES AND LOCAL GOVERNMENT
AIDS

Section 1.

Minnesota Statutes 2022, 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 person who is blind
and the spouse of the person who is blind;

(2) any person who is permanently and totally disabled or by the person with a disability
and the spouse of the person with a disability; or

(3) the surviving spouse of a veteran who was permanently and totally disabled
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 is classified as class 1a deleted text begin ordeleted text end new text begin ,new text end class 2a property, new text begin or class 4d(2)
new text end whichever is appropriate.

(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
the Department of Natural Resources, 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 for assessment year 2025 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2022, section 375.192, subdivision 2, is amended to read:

Subd. 2.

Procedure, conditions.

Upon written application by the owner of any property,
the county board may grant the reduction or abatement of estimated market valuation or
taxes and of any costs, penalties, or interest on them as the board deems just and equitable
and order the refund in whole or part of any taxes, costs, penalties, or interest which have
been erroneously or unjustly paid. Except as provided in sections 469.1812 to 469.1815,
no reduction or abatement may be granted on the basis of providing an incentive for economic
development or redevelopment. Except as provided in section 375.194, the county board
may consider and grant reductions or abatements on applications only as they relate to taxes
payable in the current year and the two prior years; provided that reductions or abatements
for the two prior years shall be considered or granted only for (i) clerical errors, or (ii) when
the taxpayer fails to file for a reduction or an adjustment due to hardship, as determined by
the county board. The application must include the Social Security number new text begin or individual
taxpayer identification number new text end of the applicant. The Social Security number deleted text begin isdeleted text end new text begin and individual
taxpayer identification number arenew text end private data on individuals as defined by section 13.02,
subdivision 12. All applications must be approved by the county assessor, or, if the property
is located in a city of the first or second class having a city assessor, by the city assessor,
and by the county auditor before consideration by the county board, except that the part of
the application which is for the abatement of penalty or interest must be approved by the
county treasurer and county auditor. Approval by the county or city assessor is not required
for abatements of penalty or interest. No reduction, abatement, or refund of any special
assessments made or levied by any municipality for local improvements shall be made
unless it is also approved by the board of review or similar taxing authority of the
municipality. On any reduction or abatement when the reduction of taxes, costs, penalties,
and interest exceed $10,000, the county board shall give notice within 20 days to the school
board and the municipality in which the property is located. The notice must describe the
property involved, the actual amount of the reduction being sought, and the reason for the
reduction.

An appeal may not be taken to the Tax Court from any order of the county board made
in the exercise of the discretionary authority granted in this section.

The county auditor shall notify the commissioner of revenue of all abatements resulting
from the erroneous classification of real property, for tax purposes, as nonhomestead property.
For the abatements relating to the current year's tax processed through June 30, the auditor
shall notify the commissioner on or before July 31 of that same year of all abatement
applications granted. For the abatements relating to the current year's tax processed after
June 30 through the balance of the year, the auditor shall notify the commissioner on or
before the following January 31 of all applications granted. The county auditor shall submit
a form containing the Social Security number new text begin or individual taxpayer identification number
new text end of the applicant and such other information the commissioner prescribes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for abatement applications
filed in 2023 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 6, is amended
to read:

Subd. 6.

Administration.

(a) The commissioner of revenue must compute the amount
of aid payable to each tier I city and county under this section. deleted text begin By August 1 of each year,
the commissioner must certify the distribution factors of each tier I city and county to be
used in the following year. The commissioner must pay local affordable housing aid annually
at the times provided in section 477A.015, distributing the amounts available on the
immediately preceding June 1 under the accounts established in section 477A.37, subdivisions
2 and 3.deleted text end new text begin On or before September 1 of each year, the commissioner of revenue must certify
the amount to be paid to each tier I city and county in that year. By July 15, 2024, and
annually thereafter, the commissioner of management and budget must certify to the
commissioner of revenue the balances in the accounts established in section 477A.37,
subdivisions 2 and 3, as of the immediately preceding June 1. The commissioner of revenue
must pay the full amount of aid on October 1 annually.
new text end

(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);

(2) spends the funds on anything other than a qualifying project; or

(3) fails to submit a report documenting use of the funds.

(d) The commissioner of revenue must stop distributing funds to a tier I city or county
that, in three consecutive years, the Minnesota Housing Finance Agency has reported,
pursuant to paragraph (b), to have failed to use funds, misused funds, or failed to report on
its use of funds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2024 and thereafter.
new text end

ARTICLE 11

DEPARTMENT OF REVENUE; MISCELLANEOUS

Section 1.

Minnesota Statutes 2022, section 270C.445, subdivision 6, is amended to read:

Subd. 6.

Enforcement; administrative order; penalties; cease and desist.

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

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

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

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

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

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

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

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

(g) If a tax preparer timely requests a hearing regarding an administrative order issued
under paragraph (b), the hearing must be commenced new text begin by the issuance of a notice of and
order for hearing by the commissioner new text end within deleted text begin tendeleted text end new text begin 30new text end days after the commissioner receives
the request for a hearing.

(h) A hearing timely requested under paragraph (e) is subject to the contested case
procedure under chapter 14, as modified by this subdivision. The administrative law judge
must issue a report containing findings of fact, conclusions of law, and a recommended
order within deleted text begin tendeleted text end new text begin 30new text end days after the completion of the hearing, the receipt of late-filed exhibits,
or the submission of written arguments, whichever is later.

(i) Within deleted text begin fivedeleted text end new text begin 15new text end days of the date of the administrative law judge's report issued under
paragraph (h), any party aggrieved by the administrative law judge's report may submit
written exceptions and arguments to the commissioner. Within deleted text begin 15deleted text end new text begin 45new text end days after receiving
the administrative law judge's report, the commissioner must issue an order vacating,
modifying, or making final the administrative order.

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for penalties assessed and orders issued
after the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2022, section 289A.12, subdivision 18, is amended to read:

Subd. 18.

deleted text begin Returnsdeleted text end new text begin Returnnew text end by qualified heirs.

A qualified heir, as defined in section
291.03, subdivision 8, paragraph (c), must file deleted text begin two returnsdeleted text end new text begin a returnnew text end with the commissioner
attesting that no disposition or cessation as provided by section 291.03, subdivision 11,
paragraph (a), occurred. deleted text begin The first return must be filed no earlier than 24 months and no later
than 26 months after the decedent's death.deleted text end The deleted text begin seconddeleted text end return must be filed no earlier than
36 months and no later than 39 months after the decedent's death.

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 2023 Supplement, section 297E.06, subdivision 4, is amended
to read:

Subd. 4.

Annual auditdeleted text begin ,deleted text end new text begin andnew text end certified inventorydeleted text begin , and cash countdeleted text end .

(a) An organization
licensed under chapter 349 with gross receipts from lawful gambling of more than $750,000
in any year must have an annual financial audit of its lawful gambling activities and funds
for that year. For the purposes of this subdivision, "gross receipts" does not include a licensed
organization's receipts from electronic pull-tabs regulated under chapter 349 provided the
electronic pull-tab manufacturer has completed an annual system and organization controls
audit, containing standards that must incorporate and be consistent with standards prescribed
by the American Institute of Certified Public Accountants.

(b) The commissioner may require a financial audit of the lawful gambling activities
and funds of an organization licensed under chapter 349, with gross receipts less than
$750,000 annually, when an organization has:

(1) failed to timely file required gambling tax returns;

(2) failed to timely pay the gambling tax or regulatory fee;

(3) filed fraudulent gambling tax returns;

(4) failed to take corrective actions required by the commissioner; or

(5) failed to otherwise comply with this chapter.

(c) Audits under this subdivision must be performed by an independent accountant firm
licensed in accordance with chapter 326A.

(d) An organization licensed under chapter 349 must perform an annual certified inventory
deleted text begin and cash countdeleted text end new text begin reportnew text end at the end of its fiscal year and submit the report to the commissioner
within 30 days after the end of its fiscal year. The report shall be on a form prescribed by
the commissioner.

(e) The commissioner of revenue shall prescribe standards for the auditsdeleted text begin ,deleted text end new text begin andnew text end certified
inventorydeleted text begin , and cash count reportsdeleted text end new text begin reportnew text end required under this subdivision. The standards may
vary based on the gross receipts of the organization. The standards must incorporate and
be consistent with standards prescribed by the American Institute of Certified Public
Accountants. A complete, true, and correct copy of the auditsdeleted text begin ,deleted text end new text begin andnew text end certified inventorydeleted text begin , and
cash countdeleted text end report must be filed as prescribed by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 4.

Minnesota Statutes 2022, section 297I.20, subdivision 4, is amended to read:

Subd. 4.

Film production credit.

(a) A taxpayer may claim a credit against the premiums
tax imposed under this chapter equal to the amount indicated on the credit certificate
statement issued to the company under section 116U.27. If the amount of the credit exceeds
the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of
the five succeeding taxable years. The entire amount of the excess unused credit for the
taxable year must be carried first to the earliest of the taxable years to which the credit may
be carried and then to each successive year to which the credit may be carried. This credit
does not affect the calculation of fire state aid under section 477B.03 and police state aid
under section 477C.03.

(b) This subdivision expires January 1, deleted text begin 2025deleted text end new text begin 2031new text end , for taxable years beginning after and
premiums received after December 31, deleted text begin 2024deleted text end new text begin 2030new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Laws 2023, chapter 1, section 28, is amended to read:

Sec. 28. EXTENSION OF STATUTE OF LIMITATIONS.

(a) Notwithstanding any law to the contrary, a taxpayer whose tax liability changes as
a result of this act may file an amended return by December 31, 2023. The commissioner
may review and assess the return of a taxpayer covered by this provision for the later of:

(1) the periods under Minnesota Statutes, sections 289A.38; deleted text begin 289.39deleted text end new text begin 289A.39new text end , subdivision
3; and 289A.40; or

(2) one year from the time the amended return is filed as a result of a change in tax
liability under this section.

(b) Interest on any additional liabilities as a result of any provision in this act accrue
beginning on January 1, 2024.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively at the same time the changes
incorporated in Laws 2023, chapter 1, were effective for federal purposes.
new text end

APPENDIX

Repealed Minnesota Statutes: S5234-1

13.4967 OTHER TAX DATA CODED ELSEWHERE.

Subd. 5.

Marijuana and controlled substance tax information.

Disclosure of information obtained under chapter 297D is governed by section 297D.13, subdivisions 1 to 3.

297A.99 LOCAL SALES TAXES.

Subd. 3a.

Temporary moratorium.

(a) Notwithstanding subdivisions 1, 2, and 3, until after May 31, 2025, a political subdivision may not engage in any of the following activities in connection with imposing a new local sales and use tax or modifying an existing local sales and use tax:

(1) any activity described in subdivision 1, paragraph (d);

(2) adopt a resolution; or

(3) seek voter approval.

(b) Paragraph (a) does not apply to new local sales and use taxes or modifications to existing local sales and use taxes authorized in May, 2023.

297D.01 DEFINITIONS.

Subdivision 1.

Illegal cannabis.

"Illegal cannabis" means any taxable cannabis product as defined in section 295.81, subdivision 1, paragraph (r), whether real or counterfeit, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of chapter 342 or Minnesota criminal laws.

Subd. 2.

Controlled substance.

"Controlled substance" means any drug or substance, whether real or counterfeit, as defined in section 152.01, subdivision 4, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of Minnesota laws. "Controlled substance" does not include illegal cannabis.

Subd. 3.

Tax obligor or obligor.

"Tax obligor" or "obligor" means a person who in violation of Minnesota law manufactures, produces, ships, transports, or imports into Minnesota or in any manner acquires or possesses more than 42-1/2 grams of illegal cannabis, or seven or more grams of any controlled substance, or ten or more dosage units of any controlled substance which is not sold by weight. A quantity of illegal cannabis or other controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.

Subd. 4.

Commissioner.

"Commissioner" means the commissioner of revenue.

297D.02 ADMINISTRATION.

The commissioner of revenue shall administer this chapter. 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. 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.

297D.03 RULES.

The commissioner may adopt rules necessary to enforce this chapter. The commissioner shall adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or other official indicia for marijuana and controlled substances on which a tax is imposed.

297D.04 TAX PAYMENT REQUIRED FOR POSSESSION.

No tax obligor may possess any illegal cannabis or controlled substance upon which a tax is imposed by section 297D.08 unless the tax has been paid on the illegal cannabis or a controlled substance as evidenced by a stamp or other official indicia.

297D.05 NO IMMUNITY.

Nothing in this chapter may in any manner provide immunity for a tax obligor from criminal prosecution pursuant to Minnesota law.

297D.06 PHARMACEUTICALS.

Nothing in this chapter requires persons registered under chapter 151 or otherwise lawfully in possession of illegal cannabis or a controlled substance to pay the tax required under this chapter.

297D.07 MEASUREMENT.

For the purpose of calculating the tax under section 297D.08, a quantity of illegal cannabis or a controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.

297D.08 TAX RATE.

A tax is imposed on illegal cannabis and controlled substances as defined in section 297D.01 at the following rates:

(1) on each gram of illegal cannabis, or each portion of a gram, $3.50; and

(2) on each gram of controlled substance, or portion of a gram, $200; or

(3) on each ten dosage units of a controlled substance that is not sold by weight, or portion thereof, $400.

297D.085 CREDIT FOR PREVIOUSLY PAID TAXES.

If another state or local unit of government has previously assessed an excise tax on the illegal cannabis or controlled substances, the taxpayer must pay the difference between the tax due under section 297D.08 and the tax previously paid. If the tax previously paid to the other state or local unit of government was equal to or greater than the tax due under section 297D.08, no tax is due. The burden is on the taxpayer to show that an excise tax on the illegal cannabis or controlled substances has been paid to another state or local unit of government.

297D.09 PENALTIES; CRIMINAL PROVISIONS.

Subdivision 1.

Penalties.

Any tax obligor violating this chapter is subject to a penalty of 100 percent of the tax in addition to the tax imposed by section 297D.08. The penalty will be collected as part of the tax.

Subd. 1a.

Criminal penalty; sale without affixed stamps.

In addition to the tax penalty imposed, a tax obligor distributing or possessing illegal cannabis or controlled substances without affixing the appropriate stamps, labels, or other indicia is guilty of a crime and, upon conviction, may be sentenced to imprisonment for not more than seven years or to payment of a fine of not more than $14,000, or both.

Subd. 2.

Statute of limitations.

Notwithstanding section 628.26, or any other provision of the criminal laws of this state, an indictment may be found and filed, or a complaint filed, upon any criminal offense specified in this section, in the proper court within six years after the commission of this offense.

297D.10 STAMP PRICE.

Official stamps, labels, or other indicia to be affixed to all illegal cannabis or controlled substances shall be purchased from the commissioner. The purchaser shall pay 100 percent of face value for each stamp, label, or other indicia at the time of the purchase.

297D.11 PAYMENT DUE.

Subdivision 1.

Stamps affixed.

When a tax obligor purchases, acquires, transports, or imports into this state illegal cannabis or controlled substances on which a tax is imposed by section 297D.08, and if the indicia evidencing the payment of the tax have not already been affixed, the tax obligor shall have them permanently affixed on the illegal cannabis or controlled substance immediately after receiving the substance. Each stamp or other official indicia may be used only once.

Subd. 2.

Payable on possession.

Taxes imposed upon illegal cannabis or controlled substances by this chapter are due and payable immediately upon acquisition or possession in this state by a tax obligor.

297D.12 ALL ASSESSMENTS ARE JEOPARDY.

Subdivision 1.

Assessment procedure.

An assessment for a tax obligor not possessing valid stamps or other official indicia showing that the tax has been paid shall be considered a jeopardy assessment or collection, as provided in section 270C.36. The commissioner shall assess a tax and applicable penalties based on personal knowledge or information available to the commissioner; mail the taxpayer at the taxpayer's last known address or serve in person, a written notice of the amount of tax and penalty; demand its immediate payment; and, if payment is not immediately made, collect the tax and penalty by any method prescribed in chapter 270C, except that the commissioner need not await the expiration of the times specified in chapter 270C.

Subd. 2.

Injunction prohibited.

No person may bring suit to enjoin the assessment or collection of any taxes, interest, or penalties imposed by this chapter.

Subd. 3.

Standard of proof.

The tax and penalties assessed by the commissioner are presumed to be valid and correctly determined and assessed. The burden is upon the taxpayer to show their incorrectness or invalidity. Any statement filed by the commissioner with the court administrator, or any other certificate by the commissioner of the amount of tax and penalties determined or assessed is admissible in evidence and is prima facie evidence of the facts it contains.

297D.13 CONFIDENTIAL NATURE OF INFORMATION.

Subdivision 1.

Disclosure prohibited.

Notwithstanding any law to the contrary, neither the commissioner nor a public employee may reveal facts contained in a report or return required by this chapter or any information obtained from a tax obligor; nor can any information contained in such a report or return or obtained from a tax obligor be used against the tax obligor in any criminal proceeding, unless independently obtained, except in connection with a proceeding involving taxes due under this chapter from the tax obligor making the return.

Subd. 2.

Penalty for disclosure.

Any person violating this section is guilty of a gross misdemeanor.

Subd. 3.

Statistics.

This section 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.

Subd. 4.

Possession of stamps.

A stamp denoting payment of the tax imposed under this chapter must not be used against the taxpayer in a criminal proceeding, except that the stamp may be used against the taxpayer in connection with the administration or civil or criminal enforcement of the tax imposed under this chapter or any similar tax imposed by another state or local unit of government.

477A.35 LOCAL AFFORDABLE HOUSING AID.

Subdivision 1.

Purpose.

The purpose of this section is to help metropolitan local governments to develop and preserve affordable housing within their jurisdictions in order to keep families from losing housing and to help those experiencing homelessness find housing.

Repealed Minnesota Session Laws: S5234-1

Laws 2023, chapter 64, article 15, section 24

Sec. 24. new text begin TAX FILING MODERNIZATION.new text end

new text begin Subdivision 1. new text end

new text begin Account established; appropriation. new text end

new text begin A tax filing modernization account is established in the special revenue fund. All funds in the tax filing modernization account are appropriated to the commissioner of revenue for the purposes specified in subdivision 3. new text end

new text begin Subd. 2. new text end

new text begin Transfer. new text end

new text begin $5,000,000 in fiscal year 2024 is transferred to the tax filing modernization account from the general fund. This is a onetime transfer. new text end

new text begin Subd. 3. new text end

new text begin Eligible uses. new text end

new text begin (a) The commissioner of revenue may use funds in the tax filing modernization account to modernize the state process for filing individual income tax returns, including: new text end

new text begin (1) updating and reviewing changes to individual income tax forms resulting from this act; new text end

new text begin (2) coordinating the process for filing state individual income tax returns with free filing options for the federal income tax; and new text end

new text begin (3) development and implementation of state free filing options for the individual income tax. new text end

new text begin (b) Beginning July 1, 2026, the commissioner of revenue may use any unspent funds in the tax filing modernization account to make taxpayer assistance grants to eligible organizations qualifying under section 7526A(e)(2)(B) of the Internal Revenue Code. new text end

new text begin Subd. 4. new text end

new text begin Unspent funds. new text end

new text begin Any unspent funds in the tax filing modernization account cancel to the general fund on June 30, 2027. new text end

SF 5234

Bill Text Versions

Current Version - 1st Engrossment

ARTICLE 1

INCOME AND CORPORATE FRANCHISE TAXES

Section 1.

Subd. 11b.

Data privacy related to electronic reporting system.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

Subd. 4.

Refund deleted text begin receipt formsdeleted text end new text begin receiptsnew text end ; penalty.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

Subdivision 1.

Generally; individuals.

new text begin EFFECTIVE DATE. new text end

Sec. 4.

Subd. 31.

Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

Sec. 5.

Subd. 4.

Education expenses.

new text begin EFFECTIVE DATE. new text end

Sec. 6.

new text begin Subd. 36. new text end

new text begin Foreign service pension; retirement pay. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 7.

new text begin Subd. 37. new text end

new text begin Discharges of indebtedness; coerced debt. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 8.

Subd. 23.

Refund of contributions to political parties and candidates.

new text begin EFFECTIVE DATE. new text end

Sec. 9.

Subd. 7.

Inflation adjustment.

new text begin EFFECTIVE DATE. new text end

Sec. 10.

Subd. 8.

Advance payment of credits.

new text begin EFFECTIVE DATE. new text end

Sec. 11.

new text begin Subd. 9. new text end

new text begin Minimum credit. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 12.

Subd. 1a.

Definitions.

new text begin EFFECTIVE DATE. new text end

Sec. 13.

290.0686 CREDIT FOR ATTAINING MASTER'S DEGREE IN TEACHER'S LICENSURE FIELD.

Subdivision 1.

Definitions.

Subd. 2.

Credit allowed.

new text begin EFFECTIVE DATE. new text end

Sec. 14.

new text begin [290.0687] AEROSPACE AND AVIATION CREDIT. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin Subd. 2. new text end

new text begin Credit for tuition paid by qualified employers; limitation. new text end

new text begin Subd. 3. new text end

new text begin Qualified employer credits; pass through entities. new text end

new text begin Subd. 4. new text end

new text begin Reports. new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 15.

Subdivision 1.

Definitions.

new text begin EFFECTIVE DATE. new text end

Sec. 16.

Subdivision 1.

Definitions.

290.0686 CREDIT FOR ATTAINING MASTER'S DEGREE IN TEACHER'S
LICENSURE FIELD.

new text begin [290.0687] AEROSPACE AND AVIATION CREDIT.
new text end

deleted text begin Transferabilitydeleted text end new text begin Credit certificatesnew text end ; written agreement required; deleted text begin credit
certificatedeleted text end new text begin transferabilitynew text end .

Sec. 19. new text begin SHAKOPEE AREA WORKFORCE DEVELOPMENT SCHOLARSHIP
CREDIT.
new text end

Sec. 20. new text begin APPROPRIATION; POLITICAL CONTRIBUTION REFUND
ELECTRONIC FILING SYSTEM.
new text end

Sec. 21. new text begin APPROPRIATION; DEPARTMENT OF TRANSPORTATION.
new text end

Sec. 22. new text begin TRANSFER.
new text end

Sec. 23. new text begin REPEALER.
new text end