as introduced - 80th Legislature, 1998 1st Special Session (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to legislative enactments; correcting 1.3 miscellaneous noncontroversial oversights, 1.4 inconsistencies, ambiguities, unintended results, and 1.5 technical errors; amending 1998 H.F. No. 3840, article 1.6 8, section 48; article 12, sections 7, subdivision 2; 1.7 and 9, subdivision 4; article 15, section 22; 1998 1.8 H.F. No. 3843, section 7, subdivision 9; Minnesota 1.9 Statutes 1997 Supplement, section 297A.25, subdivision 1.10 11, as amended. 1.11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.12 Section 1. [CORRECTION 101.] 1998 H.F. No. 3840, article 1.13 15, section 22, if enacted, is amended to read: 1.14 Sec. 22. [PROPERTY EXEMPT FROM TAXATION.] 1.15 Any properties, real or personal, owned, leased, 1.16 controlled, used, or occupied by the sanitary sewer board for 1.17 any purpose under this article are declared to be acquired, 1.18 owned, leased, controlled, used, and occupied for public, 1.19 governmental, and municipal purposes, and are exempt from 1.20 taxation by the state or any political subdivision of the state, 1.21 provided that such properties are subject to special assessments 1.22 levied by a political subdivision for a local improvement in 1.23 amounts proportionate to and not exceeding the special benefit 1.24 received by the properties from such improvement. No possible 1.25 use of any such properties in any manner different from their 1.26 use as part of the disposal system at the time shall be 1.27 considered in determining the special benefit received by such 1.28 properties. All such assessments shall be subject to final 2.1 approval by the board, whose determination of the benefits shall 2.2 be conclusive upon the political subdivision levying the 2.3 assessment.
All bonds, certificates of indebtedness, or other2.4 obligations of the board, and the interest thereon, are exempt2.5 from taxation by the state or any political subdivision of the2.6 state.2.7 Sec. 2. [CORRECTION 101A.] Minnesota Statutes 1997 2.8 Supplement, section 297A.25, subdivision 11, as amended by 1998 2.9 H.F. No. 3840, article 8, section 10, if enacted, is amended to 2.10 read: 2.11 Subd. 11. [SALES TO GOVERNMENT.] The gross receipts from 2.12 all sales, including sales in which title is retained by a 2.13 seller or a vendor or is assigned to a third party under an 2.14 installment sale or lease purchase agreement under section 2.15 465.71, of tangible personal property to, and all storage, use 2.16 or consumption of such property by, the United States and its 2.17 agencies and instrumentalities, the University of Minnesota, 2.18 state universities, community colleges, technical colleges, 2.19 state academies, the Lola and Rudy Perpich Minnesota center for 2.20 arts education, an instrumentality of a political subdivision 2.21 that is accredited as an optional/special function school by the 2.22 North Central Association of Colleges and Schools, school 2.23 districts, public libraries, public library systems, 2.24 multicounty, multitype library systems as defined in section 2.25 134.001, county law libraries under chapter 134A, the state 2.26 library under section 480.09, and the legislative reference 2.27 library are exempt. 2.28 As used in this subdivision, "school districts" means 2.29 public school entities and districts of every kind and nature 2.30 organized under the laws of the state of Minnesota, including, 2.31 without limitation, school districts, intermediate school 2.32 districts, education districts, service cooperatives, secondary 2.33 vocational cooperative centers, special education cooperatives, 2.34 joint purchasing cooperatives, telecommunication cooperatives, 2.35 regional management information centers, and any instrumentality 2.36 of a school district, as defined in section 471.59. 3.1 Sales exempted by this subdivision include sales under 3.2 section 297A.01, subdivision 3, paragraph (f). 3.3 Sales to hospitals and nursing homes owned and operated by 3.4 political subdivisions of the state are exempt under this 3.5 subdivision. 3.6 Sales of supplies and equipment used in the operation of an 3.7 ambulance service owned and operated by a political subdivision 3.8 of the state are exempt under this subdivision provided that the 3.9 supplies and equipment are used in the course of providing 3.10 medical care. Sales to a political subdivision of repair and 3.11 replacement parts for emergency rescue vehicles and fire trucks 3.12 and apparatus are exempt under this subdivision. 3.13 Sales to a political subdivision of machinery and 3.14 equipment, except for motor vehicles, used directly for mixed 3.15 municipal solid waste management services at a solid waste 3.16 disposal facility as defined in section 115A.03, subdivision 10, 3.17 are exempt under this subdivision. 3.18 Sales to political subdivisions of chore and homemaking 3.19 services to be provided to elderly or disabled individuals are 3.20 exempt. 3.21 Sales to a town of gravel and of machinery, equipment, and 3.22 accessories, except motor vehicles, used exclusively for road 3.23 and bridge maintenance, and leases of motor vehicles exempt from 3.24 tax under section 297B.03, clause (10), are exempt. 3.25 Sales of telephone services to the department of 3.26 administration that are used to provide telecommunications 3.27 services through the intertechnologies revolving fund are exempt 3.28 under this subdivision. 3.29 This exemption shall not apply to building, construction or 3.30 reconstruction materials purchased by a contractor or a 3.31 subcontractor as a part of a lump-sum contract or similar type 3.32 of contract with a guaranteed maximum price covering both labor 3.33 and materials for use in the construction, alteration, or repair 3.34 of a building or facility. This exemption does not apply to 3.35 construction materials purchased by tax exempt entities or their 3.36 contractors to be used in constructing buildings or facilities 4.1 which will not be used principally by the tax exempt entities. 4.2 This exemption does not apply to the leasing of a motor 4.3 vehicle as defined in section 297B.01, subdivision 5, except for 4.4 leases entered into by the United States or its agencies or 4.5 instrumentalities. 4.6 The tax imposed on sales to political subdivisions of the 4.7 state under this section applies to all political subdivisions 4.8 other than those explicitly exempted under this subdivision, 4.9 notwithstanding section 115A.69, subdivision 6, 116A.25, 4.10 360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 4.11 469.127, 473.448, 473.545, or 473.608 or any other law to the 4.12 contrary enacted before 1992. 4.13 Sales exempted by this subdivision include sales made to 4.14 other states or political subdivisions of other states, if the 4.15 sale would be exempt from taxation if it occurred in that state, 4.16 but do not include sales under section 297A.01, subdivision 3, 4.17 paragraphs (c) and (e). 4.18 Sec. 3. [CORRECTION 101B.] 1998 H.F. No. 3840, article 8, 4.19 section 48, if enacted, is amended to read: 4.20 Sec. 48. [EFFECTIVE DATE.] 4.21 Sections 1, 3, 8,9, 19, and 21 are effective for sales and 4.22 purchases made after June 30, 1998. Sections 2 and 47 are 4.23 effective for sales made after June 30, 2000. Sections 5, 13, 4.24 and 17 are effective for sales made after June 30, 1998. 4.25 Sections 6 and 7 are effective for rentals after June 30, 1998. 4.26 Section 10 is effective for purchases made after June 30, 1998. 4.27 Sections 8, 12, 14, 15, and 34 are effective the day following 4.28 final enactment. Section 16 is effective for purchases made 4.29 after December 1, 1997. Section 18 is effective for purchases 4.30 made after June 30, 1998, and before July 1, 2003. Section 20 4.31 is effective for local laws enacted after June 30, 1998. 4.32 Sections 22 and 23 are effective July 1, 1998. Section 24 is 4.33 effective December 31, 1997. Sections 25 to 27 are effective 4.34 upon approval by the governing body of the city of Duluth and 4.35 compliance with Minnesota Statutes, section 645.021, subdivision 4.36 3. Section 28 is effective upon approval by the governing body 5.1 of the city of Mankato and compliance with Minnesota Statutes, 5.2 section 645.021, subdivision 3. Section 29 is effective upon 5.3 approval by the governing body of the city of Rochester and 5.4 compliance with Minnesota Statutes, section 645.021, subdivision 5.5 3. Sections 30 to 32, 36, and 37 are effective the day after 5.6 the governing body of the city of St. Paul complies with 5.7 Minnesota Statutes, section 645.021. Section 35 is effective 5.8 for transfers after November 30, 1997, and before January 1, 5.9 1999. 5.10 Sec. 4. [CORRECTION 101C.] 1998 H.F. No. 3840, article 12, 5.11 section 7, subdivision 2, if enacted, is amended to read: 5.12 Subd. 2. [BORDER CITY ZONE CREDIT.] (a) A corporation may 5.13 claim a credit against the tax imposed by sections 290.02, 5.14 290.0921, and 290.0922, subdivision 1, paragraph (a). The 5.15 commissioner of revenue shall prescribe the method in which the 5.16 credit may be claimed. This may include allowing the credit 5.17 only as a separately processed claim for refund. The allowable 5.18 credit is based on the tax liability attributable to business 5.19 conducted within a zone, and may be equal to all or a portion of 5.20 that liability, as determined by the city. 5.21 (b) "Tax liability" means the tax liability under sections 5.22 290.02, 290.0921, and 290.0922, subdivision 1, paragraph (a), 5.23 after any other credits. 5.24 (c) The tax liability attributable to business conducted 5.25 within a zone means the taxpayer's tax liability multiplied by a 5.26 fraction: 5.27 (1) the numerator of which is: 5.28 (i) the ratio of the taxpayer's property factor under 5.29 section 290.191 located in the border city development zone, for 5.30 the taxable year over the property factor denominatornumerator 5.31 determined under section 290.191, plus 5.32 (ii) the ratio of the taxpayer's payroll factor under 5.33 section 290.191 located in the border city development zone, for 5.34 the taxable year over the payroll factor denominatornumerator 5.35 determined under section 290.191; and 5.36 (2) the denominator of which is two. 6.1 (d) Any portion of the taxpayer's tax liability that is 6.2 attributable to illegal activity conducted in the zone must not 6.3 be used to calculate a credit under this subdivision. 6.4 (e) The credit allowed under this subdivision continues 6.5 through the taxable year in which the zone designation expires. 6.6 (f) To be eligible for a credit under this subdivision, the 6.7 taxpayer must file an annual return under chapter 290. 6.8 (g) The credit allowed under this subdivision may not 6.9 exceed the lesser of: 6.10 (1) the tax liability of the taxpayer for the taxable year; 6.11 or 6.12 (2) the amount of the tax credit certificates received by 6.13 the taxpayer from the city, less any tax credit certificates 6.14 used under section 469.1734, subdivisions 4, 5, and 6. 6.15 Sec. 5. [CORRECTION 101D.] 1998 H.F. No. 3840, article 12, 6.16 section 9, subdivision 4, if enacted, is amended to read: 6.17 Subd. 4. [INCOME TAX.] (a) Upon application by the 6.18 qualifying business to the city, and approval of the city, a 6.19 qualifying business shall receive a credit against taxes imposed 6.20 under chapter 290, other than the tax imposed under section 6.21 290.92, based on the taxable net income of the qualified 6.22 business attributable to the border city, but outside the border 6.23 city development zone, multiplied by 9.8 percent in the case of 6.24 a taxpayer under section 290.02, and 8.5 percent in the case of 6.25 a taxpayer taxable under section 290.06, subdivision 2c. The 6.26 attributable net income of a qualified business in the border 6.27 city is determined by multiplying the taxable net income of the 6.28 business entity, determined as if the business were a C 6.29 corporation, by a fraction: 6.30 (1) the numerator of which is: 6.31 (i) the ratio of the taxpayer's property factor under 6.32 section 290.191 located in the border city, but outside of the 6.33 border city development zone, for the taxable year over the 6.34 property factor denominatornumerator determined under section 6.35 290.191, plus 6.36 (ii) the ratio of the taxpayer's payroll factor under 7.1 section 290.191 located in the border city, but outside of the 7.2 border city development zone, for the taxable year over the 7.3 payroll factor denominatornumerator determined under section 7.4 290.191; and 7.5 (2) the denominator of which is two. 7.6 (b) The credit under this subdivision applies after any 7.7 credit allowed under subdivision 5. 7.8 (c) After any notice period required by subdivision 7, the 7.9 city council must determine whether granting the credit is in 7.10 the best interest of the city, and if it so determines, must 7.11 approve the granting of the credit and determine its amount. 7.12 (d) The credit under this subdivision may not exceed the 7.13 amount of the tax credit certificates received by the taxpayer 7.14 from the city, less any tax credit certificates used under 7.15 section 469.1732, subdivision 2, and subdivisions 5 and 6. 7.16 (e) No taxpayer may receive the credit under this 7.17 subdivision for more than five taxable years. 7.18 Sec. 6. [CORRECTION 102.] 1998 H.F. No. 3843, section 7, 7.19 subdivision 9, if enacted, is amended to read: 7.20 Subd. 9. Flood Hazard 7.21 Mitigation Grants 30,000,000 7.22 For the flood hazard mitigation grant 7.23 program to local government units for 7.24 publicly owned capital improvements to 7.25 prevent or alleviate flood damages 7.26 under Minnesota Statutes, section 7.27 103F.161. 7.28 $1,500,000 is to construct ring dikes, 7.29 whether publicly or privately owned. 7.30 $500,000 is for a grant to Clay county 7.31 to remove houses in the Crestwood 7.32 addition in Kurtz township on the Red 7.33 River that are endangered by the 7.34 collapsing river bank. This 7.35 appropriation need not be matched. 7.36 The commissioner shall determine other 7.37 project priorities as appropriate based 7.38 upon need. 7.39 As soon as the United States Army Corps 7.40 of Engineers section 205 flood control 7.41 study for the city of Breckenridge is 7.42 complete, the commissioner shall make a 7.43 recommendation to the legislature for 7.44 the funding necessary to complete flood 7.45 hazard mitigation efforts in the city. 7.46 Sec. 7. [EFFECTIVE DATE.] 8.1 Unless provided otherwise, each section of this act takes 8.2 effect at the time the provision being corrected takes effect.