<div class="xtend"><a id="pl.1.1"></a><var>1.1</var>CONFERENCE COMMITTEE REPORT ON H. F. No. 848<br />
         		
         <div class="xtend_ce"><a id="pl.1.2"></a><var>1.2</var>A bill for an act<br />
            		
         </div><a id="pl.1.3"></a><var>1.3</var>relating to financing and operation of state and local government; making <br />
         		<a id="pl.1.4"></a><var>1.4</var>changes to individual income, corporate franchise, property, sales and use, <br />
         		<a id="pl.1.5"></a><var>1.5</var>excise, estate, mineral, tobacco, gambling, special, local, and other taxes and <br />
         		<a id="pl.1.6"></a><var>1.6</var>tax-related provisions; providing for long-term care savings plans; modifying <br />
         		<a id="pl.1.7"></a><var>1.7</var>business income tax credits; modifying income tax subtractions and additions; <br />
         		<a id="pl.1.8"></a><var>1.8</var>modifying the definition of resident for income tax purposes; modifying <br />
         		<a id="pl.1.9"></a><var>1.9</var>the dependent care credit, education credit, and research credit; providing <br />
         		<a id="pl.1.10"></a><var>1.10</var>credits for MNsure premium payments, attaining a master's degree, student <br />
         		<a id="pl.1.11"></a><var>1.11</var>loan payments, college savings plans, and job training centers; modifying <br />
         		<a id="pl.1.12"></a><var>1.12</var>reciprocity provisions; providing an additional personal and dependent <br />
         		<a id="pl.1.13"></a><var>1.13</var>exemption; allowing a reverse referendum for property tax levies under certain <br />
         		<a id="pl.1.14"></a><var>1.14</var>circumstances; modifying dates for local referenda related to spending; changing <br />
         		<a id="pl.1.15"></a><var>1.15</var>proposed levy certification dates for special taxing districts; modifying general <br />
         		<a id="pl.1.16"></a><var>1.16</var>property tax provisions; providing for joint county and township assessment <br />
         		<a id="pl.1.17"></a><var>1.17</var>agreements; modifying the definition of agricultural homestead; modifying <br />
         		<a id="pl.1.18"></a><var>1.18</var>property classification definitions; permanently extending the market value <br />
         		<a id="pl.1.19"></a><var>1.19</var>exclusion for surviving spouses of deceased service members and permanently <br />
         		<a id="pl.1.20"></a><var>1.20</var>disabled veterans; modifying provisions for appeals and equalizations courses; <br />
         		<a id="pl.1.21"></a><var>1.21</var>providing a tax credit for overvalued property; modifying and phasing out the <br />
         		<a id="pl.1.22"></a><var>1.22</var>state general levy; modifying proposed levy provisions; modifying due dates <br />
         		<a id="pl.1.23"></a><var>1.23</var>for property taxes; changing withdrawal procedures for the Sustainable Forest <br />
         		<a id="pl.1.24"></a><var>1.24</var>Incentive Program; authorizing valuation exclusion for certain improvements <br />
         		<a id="pl.1.25"></a><var>1.25</var>to homestead and commercial-industrial property; providing an increased estate <br />
         		<a id="pl.1.26"></a><var>1.26</var>tax exemption amount and other estate tax provisions; providing for certain <br />
         		<a id="pl.1.27"></a><var>1.27</var>economic development projects; providing for the Minnesota New Markets Jobs <br />
         		<a id="pl.1.28"></a><var>1.28</var>Act; restricting expenditures and other powers related to certain rail projects; <br />
         		<a id="pl.1.29"></a><var>1.29</var>providing for additional border city zone allocations; modifying general tax <br />
         		<a id="pl.1.30"></a><var>1.30</var>increment financing provisions; modifying provisions for the Destination Medical <br />
         		<a id="pl.1.31"></a><var>1.31</var>Center; modifying general and local sales and use tax provisions; modifying sales <br />
         		<a id="pl.1.32"></a><var>1.32</var>tax definitions and refunds related to petroleum and special fuel, durable medical <br />
         		<a id="pl.1.33"></a><var>1.33</var>equipment, instructional materials, propane tanks, bullion, capital equipment, <br />
         		<a id="pl.1.34"></a><var>1.34</var>and nonprofit groups; providing for a vendor allowance; providing exemptions <br />
         		<a id="pl.1.35"></a><var>1.35</var>for animal shelters, city celebrations, BMX tracks, and certain building and <br />
         		<a id="pl.1.36"></a><var>1.36</var>construction materials; repealing the tax on digital products; providing a separate <br />
         		<a id="pl.1.37"></a><var>1.37</var>rate for certain modular housing; modifying gambling taxes; providing a <br />
         		<a id="pl.1.38"></a><var>1.38</var>definition and rate of tax for vapor products under the tobacco tax; modifying <br />
         		<a id="pl.1.39"></a><var>1.39</var>cigarette stamp provisions; modifying rates for pull tabs sold at bingo halls; <br />
         		<a id="pl.1.40"></a><var>1.40</var>modifying miscellaneous tax provisions; modifying sales tax deposits, accounts, <br />
         		<a id="pl.1.41"></a><var>1.41</var>and provisions for transportation purposes; modifying local government aids <br />
         		<a id="pl.1.42"></a><var>1.42</var>and credits; providing for a school building bond agricultural credit; modifying <br />
         		<a id="pl.1.43"></a><var>1.43</var>assessor accreditation; accelerating the repeal of MinnesotaCare provider taxes; <br />
         		<a id="pl.2.1"></a><var>2.1</var>creating a county program aid working group; establishing trust fund accounts; <br />
         		<a id="pl.2.2"></a><var>2.2</var>providing trust fund payments to counties; modifying provisions related to <br />
         		<a id="pl.2.3"></a><var>2.3</var>payments in lieu of taxes for natural resources land; repealing the political <br />
         		<a id="pl.2.4"></a><var>2.4</var>contribution refund; making various conforming and technical changes; requiring <br />
         		<a id="pl.2.5"></a><var>2.5</var>reports; appropriating money;amending Minnesota Statutes 2014, sections <br />
         		<a id="pl.2.6"></a><var>2.6</var>16A.726; 40A.18, subdivision 2; 62V.05, subdivision 5; 97A.055, subdivision <br />
         		<a id="pl.2.7"></a><var>2.7</var>2; 97A.056, subdivision 1a, by adding subdivisions; 116J.8737, subdivisions 5, <br />
         		<a id="pl.2.8"></a><var>2.8</var>12; 116P.02, subdivision 1, by adding a subdivision; 123B.63, subdivision 3; <br />
         		<a id="pl.2.9"></a><var>2.9</var>126C.17, subdivision 9; 205.10, subdivision 1; 205A.05, subdivision 1; 216B.46; <br />
         		<a id="pl.2.10"></a><var>2.10</var>237.19; 270A.03, subdivision 7; 270B.14, subdivision 17; 270C.13, subdivision <br />
         		<a id="pl.2.11"></a><var>2.11</var>1; 270C.9901; 273.061, subdivision 4; 273.072, by adding a subdivision; <br />
         		<a id="pl.2.12"></a><var>2.12</var>273.124, subdivision 14; 273.13, subdivisions 23, 25, 34; 274.014, subdivision <br />
         		<a id="pl.2.13"></a><var>2.13</var>2; 275.025; 275.065, subdivisions 1, 3; 275.07, subdivisions 1, 2; 275.08, <br />
         		<a id="pl.2.14"></a><var>2.14</var>subdivision 1b; 275.60; 276.04, subdivisions 1, 2; 278.12; 279.01, subdivisions <br />
         		<a id="pl.2.15"></a><var>2.15</var>1, 3; 279.37, subdivision 2; 282.01, subdivision 4; 282.261, subdivision 2; <br />
         		<a id="pl.2.16"></a><var>2.16</var>289A.02, subdivision 7, as amended; 289A.10, subdivision 1; 289A.12, by <br />
         		<a id="pl.2.17"></a><var>2.17</var>adding a subdivision; 289A.20, subdivision 4; 289A.50, subdivision 1; 290.01, <br />
         		<a id="pl.2.18"></a><var>2.18</var>subdivisions 6, 7, 19, as amended, 19a, 19b, 19d, 29, 31, as amended; 290.06, <br />
         		<a id="pl.2.19"></a><var>2.19</var>by adding subdivisions; 290.067, subdivision 1; 290.0671, subdivisions 1, 6a; <br />
         		<a id="pl.2.20"></a><var>2.20</var>290.0672, subdivision 2; 290.0674, subdivisions 1, 2, by adding a subdivision; <br />
         		<a id="pl.2.21"></a><var>2.21</var>290.0677, subdivision 2; 290.068, subdivisions 1, 3, 6a, by adding a subdivision; <br />
         		<a id="pl.2.22"></a><var>2.22</var>290.081; 290.091, subdivision 2; 290.191, subdivision 5; 290A.03, subdivision <br />
         		<a id="pl.2.23"></a><var>2.23</var>15, as amended; 290C.10; 291.005, subdivision 1, as amended; 291.016, <br />
         		<a id="pl.2.24"></a><var>2.24</var>subdivision 3; 291.03, subdivisions 1, 1d; 296A.01, subdivision 12; 296A.08, <br />
         		<a id="pl.2.25"></a><var>2.25</var>subdivision 2; 296A.16, subdivision 2; 297A.61, subdivisions 3, 4, 38; 297A.62, <br />
         		<a id="pl.2.26"></a><var>2.26</var>subdivision 3; 297A.668, subdivisions 1, 2, 6a, 7; 297A.669, subdivision 14a; <br />
         		<a id="pl.2.27"></a><var>2.27</var>297A.67, subdivisions 7a, 13a, by adding subdivisions; 297A.68, subdivisions <br />
         		<a id="pl.2.28"></a><var>2.28</var>5, 19; 297A.70, subdivisions 4, 10, 14, by adding subdivisions; 297A.71, by <br />
         		<a id="pl.2.29"></a><var>2.29</var>adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.77, subdivision <br />
         		<a id="pl.2.30"></a><var>2.30</var>3; 297A.815, subdivision 3; 297A.94; 297A.992, subdivisions 1, 6, 6a, by <br />
         		<a id="pl.2.31"></a><var>2.31</var>adding a subdivision; 297A.994, subdivision 4; 297E.02, subdivisions 1, 6; <br />
         		<a id="pl.2.32"></a><var>2.32</var>297F.01, subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by <br />
         		<a id="pl.2.33"></a><var>2.33</var>adding subdivisions; 297F.06, subdivisions 1, 4; 297F.08, subdivisions 5, 7, 8; <br />
         		<a id="pl.2.34"></a><var>2.34</var>297F.09, subdivision 1; 297I.20, by adding a subdivision; 298.24, subdivision <br />
         		<a id="pl.2.35"></a><var>2.35</var>1; 309.53, subdivision 3; 345.42, by adding a subdivision; 349.12, by adding a <br />
         		<a id="pl.2.36"></a><var>2.36</var>subdivision; 412.221, subdivision 2; 412.301; 426.19, subdivision 2; 447.045, <br />
         		<a id="pl.2.37"></a><var>2.37</var>subdivisions 2, 3, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision 1; <br />
         		<a id="pl.2.38"></a><var>2.38</var>469.053, subdivision 5; 469.0724; 469.107, subdivision 2; 469.169, by adding <br />
         		<a id="pl.2.39"></a><var>2.39</var>a subdivision; 469.174, subdivisions 12, 14; 469.175, subdivision 3; 469.176, <br />
         		<a id="pl.2.40"></a><var>2.40</var>subdivisions 4, 4c; 469.1761, by adding a subdivision; 469.1763, subdivisions 1, <br />
         		<a id="pl.2.41"></a><var>2.41</var>2, 3; 469.178, subdivision 7; 469.190, subdivisions 1, 5; 469.40, subdivision 11, <br />
         		<a id="pl.2.42"></a><var>2.42</var>as amended; 469.43, by adding a subdivision; 469.45, subdivisions 1, 2; 469.47, <br />
         		<a id="pl.2.43"></a><var>2.43</var>subdivision 4, as amended; 471.57, subdivision 3; 471.571, subdivision 3; <br />
         		<a id="pl.2.44"></a><var>2.44</var>471.572, subdivisions 2, 4; 473.13, by adding a subdivision; 473.39, by adding a <br />
         		<a id="pl.2.45"></a><var>2.45</var>subdivision; 473.446, subdivision 1; 473H.09; 473H.17, subdivision 1a; 475.59; <br />
         		<a id="pl.2.46"></a><var>2.46</var>477A.013, subdivision 10, by adding a subdivision; 477A.017, subdivision 2, <br />
         		<a id="pl.2.47"></a><var>2.47</var>by adding a subdivision; 477A.03, subdivisions 2a, 2b; 477A.10; 477A.11, by <br />
         		<a id="pl.2.48"></a><var>2.48</var>adding subdivisions; 609.5316, subdivision 3; 611.27, subdivisions 13, 15; <br />
         		<a id="pl.2.49"></a><var>2.49</var>Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; <br />
         		<a id="pl.2.50"></a><var>2.50</var>Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as <br />
         		<a id="pl.2.51"></a><var>2.51</var>amended, 5, 6; Laws 1996, chapter 471, article 3, section 51; Laws 1999, chapter <br />
         		<a id="pl.2.52"></a><var>2.52</var>243, article 4, section 18, subdivision 1, as amended; Laws 2008, chapter 366, <br />
         		<a id="pl.2.53"></a><var>2.53</var>article 7, section 20; Laws 2009, chapter 88, article 5, section 17, as amended; <br />
         		<a id="pl.2.54"></a><var>2.54</var>Laws 2011, First Special Session chapter 9, article 6, section 97, subdivision <br />
         		<a id="pl.2.55"></a><var>2.55</var>6; Laws 2014, chapter 308, article 6, section 7; proposing coding for new law <br />
         		<a id="pl.2.56"></a><var>2.56</var>in Minnesota Statutes, chapters 11A; 16A; 16B; 116J; 116P; 117; 273; 274; <br />
         		<a id="pl.2.57"></a><var>2.57</var>275; 290; 297A; 416; 459; 473; 477A; 609; proposing coding for new law as <br />
         		<a id="pl.2.58"></a><var>2.58</var>Minnesota Statutes, chapter 116X; repealing Minnesota Statutes 2014, sections <br />
         		<a id="pl.3.1"></a><var>3.1</var>10A.322, subdivision 4; 13.4967, subdivision 2; 205.10, subdivision 3; 290.06, <br />
         		<a id="pl.3.2"></a><var>3.2</var>subdivision 23; 290.067, subdivisions 2, 2a, 2b; 297A.61, subdivisions 50, 51, <br />
         		<a id="pl.3.3"></a><var>3.3</var>52, 53, 54, 55, 56; 297A.992, subdivision 12; 297F.05, subdivision 1a; 477A.017, <br />
         		<a id="pl.3.4"></a><var>3.4</var>subdivision 3; 477A.085; 477A.19; Minnesota Rules, part 4503.1400, subpart 4.<br />
         		<a id="pl.3.5"></a><var>3.5</var>May 22, 2016<br />
         		<a id="pl.3.6"></a><var>3.6</var>The Honorable Kurt L. Daudt<br />
         		<a id="pl.3.7"></a><var>3.7</var>Speaker of the House of Representatives<br />
         		<a id="pl.3.8"></a><var>3.8</var>The Honorable Sandra L. Pappas<br />
         		<a id="pl.3.9"></a><var>3.9</var>President of the Senate<br />
         		<a id="pl.3.10"></a><var>3.10</var>We, the undersigned conferees for H. F. No. 848 report that we have agreed upon the <br />
         		<a id="pl.3.11"></a><var>3.11</var>items in dispute and recommend as follows:<br />
         		<a id="pl.3.12"></a><var>3.12</var>That the Senate recede from its amendments and that H. F. No. 848 be further <br />
         		<a id="pl.3.13"></a><var>3.13</var>amended as follows:<br />
         		<a id="pl.3.14"></a><var>3.14</var>Delete everything after the enacting clause and insert:<br />
         		<br />
         		<a id="bill.1.0.0"></a><div class="xtend_ce"><a id="pl.3.15"></a><var>3.15</var>"<b>ARTICLE 1</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.3.16"></a><var>3.16</var><b>PROPERTY TAX</b><br />
            		
         </div><br />
         		<a id="bill.1.1.0"></a><a id="pl.3.17"></a><var>3.17</var>&#160;&#160;&#160;&#160;Section 1. <b>[103C.333] COUNTY LEVY AUTHORITY.</b><br />
         		<a id="pl.3.18"></a><var>3.18</var>Notwithstanding any other law to the contrary, a county levying a tax under section <br />
         		<a id="pl.3.19"></a><var>3.19</var>103C.331 shall not include any taxes levied under those authorities in the levy certified <br />
         		<a id="pl.3.20"></a><var>3.20</var>under section 275.07, subdivision 1, paragraph (a). A county levying under section <br />
         		<a id="pl.3.21"></a><var>3.21</var>103C.331 shall separately certify that amount, and the auditor shall extend that levy as a <br />
         		<a id="pl.3.22"></a><var>3.22</var>special taxing district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).<br />
         		<a id="pl.3.23"></a><var>3.23</var><b>EFFECTIVE DATE.</b>This section is effective for certifications made in 2016 and <br />
         		<a id="pl.3.24"></a><var>3.24</var>thereafter.<br />
         		<br />
         		<a id="bill.1.2.0"></a><a id="pl.3.25"></a><var>3.25</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 138.053, is amended to read:<br />
         		<a id="pl.3.26"></a><var>3.26</var><b>138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR </b><br />
         		<a id="pl.3.27"></a><var>3.27</var><b>TOWNS.</b><br />
         		<a id="pl.3.28"></a><var>3.28</var>&#160;&#160;&#160;&#160;The governing body of any home rule charter or statutory city or town may annually <br />
         		<a id="pl.3.29"></a><var>3.29</var>appropriate from its general fund an amount not to exceed 0.02418 percent of estimated <br />
         		<a id="pl.3.30"></a><var>3.30</var>market value, derived from ad valorem taxes on property or other revenues, to be paid to <br />
         		<a id="pl.3.31"></a><var>3.31</var>the historical society of its respective city, town, or county to be used for the promotion of <br />
         		<a id="pl.3.32"></a><var>3.32</var>historical work and to aid in defraying the expenses of carrying on the historical work in the <br />
         		<a id="pl.3.33"></a><var>3.33</var>county. No city or town may appropriate any funds for the benefit of any historical society <br />
         		<a id="pl.3.34"></a><var>3.34</var>unless the society is affiliated with and approved by the Minnesota Historical Society.<br />
         		<a id="pl.3.35"></a><var>3.35</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.3.0"></a><a id="pl.4.1"></a><var>4.1</var>&#160;&#160;&#160;&#160;Sec. 3. <b>[216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE </b><br />
         		<a id="pl.4.2"></a><var>4.2</var><b>ASSOCIATION.</b><br />
         		<a id="pl.4.3"></a><var>4.3</var>A cooperative electric association that has elected to be subject to rate regulation <br />
         		<a id="pl.4.4"></a><var>4.4</var>under section 216B.026 is eligible to file with the commission for approval of an <br />
         		<a id="pl.4.5"></a><var>4.5</var>adjustment for real and personal property taxes, fees, and permits.<br />
         		<a id="pl.4.6"></a><var>4.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.4.0"></a><a id="pl.4.7"></a><var>4.7</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision <br />
         		<a id="pl.4.8"></a><var>4.8</var>to read:<br />
         		<a id="pl.4.9"></a><var>4.9</var>&#160;&#160;&#160;&#160;Subd. 100. <b>Electric generation facility; personal property.</b> (a) Notwithstanding <br />
         		<a id="pl.4.10"></a><var>4.10</var>subdivision 9, clause (a), attached machinery, transformers, and other personal property <br />
         		<a id="pl.4.11"></a><var>4.11</var>that (1) is part of a natural gas-fired combined heat and power facility, (2) generates <br />
         		<a id="pl.4.12"></a><var>4.12</var>electricity and steam for at least partial consumption as part of an industrial use, including <br />
         		<a id="pl.4.13"></a><var>4.13</var>corn processing, (3) is less than 80,000 kilowatts of installed capacity, and (4) meets the <br />
         		<a id="pl.4.14"></a><var>4.14</var>requirements of this subdivision, are exempt.<br />
         		<a id="pl.4.15"></a><var>4.15</var>(b) At the time of construction, the facility must:<br />
         		<a id="pl.4.16"></a><var>4.16</var>(1) be designed to utilize natural gas as a primary fuel;<br />
         		<a id="pl.4.17"></a><var>4.17</var>(2) not be owned by a public utility as defined in section 216B.02, subdivision 4;<br />
         		<a id="pl.4.18"></a><var>4.18</var>(3) be located within 15 miles of an existing natural gas pipeline and within one mile <br />
         		<a id="pl.4.19"></a><var>4.19</var>of an existing electrical transmission substation; and<br />
         		<a id="pl.4.20"></a><var>4.20</var>(4) be located outside the metropolitan area as defined in section 473.121, <br />
         		<a id="pl.4.21"></a><var>4.21</var>subdivision 2.<br />
         		<a id="pl.4.22"></a><var>4.22</var>(c) Construction of the facility must commence after January 1, 2015, and <br />
         		<a id="pl.4.23"></a><var>4.23</var>before January 1, 2019. Property eligible for this exemption does not include electric <br />
         		<a id="pl.4.24"></a><var>4.24</var>transmission lines and interconnections, or gas pipelines and interconnections, appurtenant <br />
         		<a id="pl.4.25"></a><var>4.25</var>to the property or the facility.<br />
         		<a id="pl.4.26"></a><var>4.26</var>(d) In lieu of personal property taxes each year, the owner of the combined heat and <br />
         		<a id="pl.4.27"></a><var>4.27</var>power facility shall pay a base payment of 0.14 cents per kilowatt-hour of electricity <br />
         		<a id="pl.4.28"></a><var>4.28</var>produced by the facility during the previous calendar year. In addition to the base payment <br />
         		<a id="pl.4.29"></a><var>4.29</var>and in lieu of personal property taxes each year, the owner of the combined heat and power <br />
         		<a id="pl.4.30"></a><var>4.30</var>facility shall pay an additional payment of 0.08 cents per kilowatt-hour of electricity <br />
         		<a id="pl.4.31"></a><var>4.31</var>produced by the facility during the previous calendar year if, during the previous calendar <br />
         		<a id="pl.4.32"></a><var>4.32</var>year, the host township or city had an agreement with a municipal utilities commission <br />
         		<a id="pl.4.33"></a><var>4.33</var>to share the cost of acquiring, developing, and marketing land for industrial purposes, <br />
         		<a id="pl.4.34"></a><var>4.34</var>and under such agreement both the host township or city and the municipal utilities <br />
         		<a id="pl.4.35"></a><var>4.35</var>commission provided funds during the previous calendar year as part of a cost-sharing <br />
         		<a id="pl.5.1"></a><var>5.1</var>agreement. The additional payment to be paid by the owner of the combined heat and <br />
         		<a id="pl.5.2"></a><var>5.2</var>power facility shall be the lesser of 0.08 cents per kilowatt-hour of electricity produced <br />
         		<a id="pl.5.3"></a><var>5.3</var>by the facility or 57 percent of the amount funded by the host township or city during <br />
         		<a id="pl.5.4"></a><var>5.4</var>the previous calendar year pursuant to the aforementioned cost-sharing agreement. The <br />
         		<a id="pl.5.5"></a><var>5.5</var>payments imposed under this section shall be paid to the county treasurer for the benefit of <br />
         		<a id="pl.5.6"></a><var>5.6</var>the host township or city, at the time and in the manner provided for payment of property <br />
         		<a id="pl.5.7"></a><var>5.7</var>taxes under section 277.01, subdivision 3. If unpaid, the payments are subject to the same <br />
         		<a id="pl.5.8"></a><var>5.8</var>enforcement, collection, and interest and penalties as delinquent personal property taxes. <br />
         		<a id="pl.5.9"></a><var>5.9</var>Except to the extent inconsistent with this section, sections 277.01 to 277.24 and 278.01 <br />
         		<a id="pl.5.10"></a><var>5.10</var>to 278.13 apply to the payments imposed under this section, and for purposes of those <br />
         		<a id="pl.5.11"></a><var>5.11</var>sections the payments imposed under this section are considered personal property taxes.<br />
         		<a id="pl.5.12"></a><var>5.12</var>(e) The owner of the combined heat and power facility shall file a report with the <br />
         		<a id="pl.5.13"></a><var>5.13</var>commissioner of revenue annually on or before February 1, detailing the amount of <br />
         		<a id="pl.5.14"></a><var>5.14</var>electricity in kilowatt-hours that was produced by the facility and the amount funded by <br />
         		<a id="pl.5.15"></a><var>5.15</var>the host township or city in accordance with the cost-sharing agreement described in <br />
         		<a id="pl.5.16"></a><var>5.16</var>paragraph (d) during the previous calendar year. The commissioner shall prescribe the <br />
         		<a id="pl.5.17"></a><var>5.17</var>form of the report. The report must contain the information required by the commissioner <br />
         		<a id="pl.5.18"></a><var>5.18</var>to determine the payments due under this section payable in the current year. If an owner <br />
         		<a id="pl.5.19"></a><var>5.19</var>of the facility subject to taxation under this section fails to file the report by the due date, <br />
         		<a id="pl.5.20"></a><var>5.20</var>the commissioner of revenue shall determine the payments based upon the nameplate <br />
         		<a id="pl.5.21"></a><var>5.21</var>capacity of the system multiplied by a capacity factor of 85 percent.<br />
         		<a id="pl.5.22"></a><var>5.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable beginning in 2017 <br />
         		<a id="pl.5.23"></a><var>5.23</var>and thereafter.<br />
         		<br />
         		<a id="bill.1.5.0"></a><a id="pl.5.24"></a><var>5.24</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision <br />
         		<a id="pl.5.25"></a><var>5.25</var>to read:<br />
         		<a id="pl.5.26"></a><var>5.26</var>&#160;&#160;&#160;&#160;Subd. 101. <b>Electric generation facility; personal property.</b> (a) Notwithstanding <br />
         		<a id="pl.5.27"></a><var>5.27</var>subdivision 9, clause (a), attached machinery and other personal property that is part of an <br />
         		<a id="pl.5.28"></a><var>5.28</var>electric generation facility with more than 35 megawatts and less than 40 megawatts of <br />
         		<a id="pl.5.29"></a><var>5.29</var>installed capacity and that meets the requirements of this subdivision is exempt from taxes <br />
         		<a id="pl.5.30"></a><var>5.30</var>and payments in lieu of taxes. The facility must:<br />
         		<a id="pl.5.31"></a><var>5.31</var>(1) be designed to utilize natural gas as a primary fuel;<br />
         		<a id="pl.5.32"></a><var>5.32</var>(2) be owned and operated by a municipal power agency as defined in section <br />
         		<a id="pl.5.33"></a><var>5.33</var>453.52, subdivision 8;<br />
         		<a id="pl.5.34"></a><var>5.34</var>(3) be located within 800 feet of an existing natural gas pipeline;<br />
         		<a id="pl.6.1"></a><var>6.1</var>(4) satisfy a resource deficiency identified in an approved integrated resource plan <br />
         		<a id="pl.6.2"></a><var>6.2</var>filed under section 216B.2422;<br />
         		<a id="pl.6.3"></a><var>6.3</var>(5) be located outside the metropolitan area as defined under section 473.121, <br />
         		<a id="pl.6.4"></a><var>6.4</var>subdivision 2; and<br />
         		<a id="pl.6.5"></a><var>6.5</var>(6) have received, by resolution, the approval of the governing bodies of the city <br />
         		<a id="pl.6.6"></a><var>6.6</var>and county in which it is located for the exemption of personal property provided by <br />
         		<a id="pl.6.7"></a><var>6.7</var>this subdivision.<br />
         		<a id="pl.6.8"></a><var>6.8</var>(b) Construction of the facility must have been commenced after January 1, 2015, <br />
         		<a id="pl.6.9"></a><var>6.9</var>and before January 1, 2016. Property eligible for this exemption does not include electric <br />
         		<a id="pl.6.10"></a><var>6.10</var>transmission lines and interconnections or gas pipelines and interconnections appurtenant <br />
         		<a id="pl.6.11"></a><var>6.11</var>to the property or the facility.<br />
         		<a id="pl.6.12"></a><var>6.12</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2017 and <br />
         		<a id="pl.6.13"></a><var>6.13</var>thereafter.<br />
         		<br />
         		<a id="bill.1.6.0"></a><a id="pl.6.14"></a><var>6.14</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 272.162, is amended to read:<br />
         		<a id="pl.6.15"></a><var>6.15</var><b>272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.</b><br />
         		<a id="pl.6.16"></a><var>6.16</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Conditions restricting transfer.</b> When a deed or other instrument <br />
         		<a id="pl.6.17"></a><var>6.17</var>conveying a parcel of land is presented to the county auditor for transfer or division under <br />
         		<a id="pl.6.18"></a><var>6.18</var>sections 
         <statute_ref>272.12</statute_ref>, 
         <statute_ref>272.16</statute_ref>, and 
         <statute_ref>272.161</statute_ref>, the auditor shall not transfer or divide the land or its <br />
         		<a id="pl.6.19"></a><var>6.19</var>net tax capacity in the official records and shall not certify the instrument as provided in <br />
         		<a id="pl.6.20"></a><var>6.20</var>section 
         <statute_ref>272.12</statute_ref>, if:<br />
         		<a id="pl.6.21"></a><var>6.21</var>(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;<br />
         		<a id="pl.6.22"></a><var>6.22</var>(b) The part conveyed appears within the area of application of municipal or <br />
         		<a id="pl.6.23"></a><var>6.23</var>county subdivision regulations adopted and filed under section 394.35 or section 
         <statute_ref>462.36, <br />
            		<a id="pl.6.24"></a><var>6.24</var>subdivision 1
         </statute_ref>; and<br />
         		<a id="pl.6.25"></a><var>6.25</var>(c) The part conveyed is part of or constitutes a subdivision as defined in section <br />
         		
         <statute_ref><a id="pl.6.26"></a><var>6.26</var>462.352, subdivision 12
         </statute_ref>.<br />
         		<a id="pl.6.27"></a><var>6.27</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Conditions allowing transfer.</b> (a) Notwithstanding the provisions of <br />
         		<a id="pl.6.28"></a><var>6.28</var>subdivision 1, the county auditor may transfer or divide the land and its net tax capacity <br />
         		<a id="pl.6.29"></a><var>6.29</var>and may certify the instrument if the instrument contains a certification by the clerk of <br />
         		<a id="pl.6.30"></a><var>6.30</var>the municipality or designated county planning official:<br />
         		<a id="pl.6.31"></a><var>6.31</var>(a) (1) that the municipality's or county's subdivision regulations do not apply;<br />
         		<a id="pl.6.32"></a><var>6.32</var>(b) (2) that the subdivision has been approved by the governing body of the <br />
         		<a id="pl.6.33"></a><var>6.33</var>municipality or county; or<br />
         		<a id="pl.7.1"></a><var>7.1</var>(c) (3) that the restrictions on the division of taxes and filing and recording have <br />
         		<a id="pl.7.2"></a><var>7.2</var>been waived by resolution of the governing body of the municipality or county in the <br />
         		<a id="pl.7.3"></a><var>7.3</var>particular case because compliance would create an unnecessary hardship and failure to <br />
         		<a id="pl.7.4"></a><var>7.4</var>comply would not interfere with the purpose of the regulations.<br />
         		<a id="pl.7.5"></a><var>7.5</var>(b) If any of the conditions for certification by the municipality or county as provided <br />
         		<a id="pl.7.6"></a><var>7.6</var>in this subdivision exist and the municipality or county does not certify that they exist <br />
         		<a id="pl.7.7"></a><var>7.7</var>within 24 hours after the instrument of conveyance has been presented to the clerk of <br />
         		<a id="pl.7.8"></a><var>7.8</var>the municipality or designated county planning official, the provisions of subdivision 1 <br />
         		<a id="pl.7.9"></a><var>7.9</var>do not apply.<br />
         		<a id="pl.7.10"></a><var>7.10</var>(c) If an unexecuted instrument is presented to the municipality or county and <br />
         		<a id="pl.7.11"></a><var>7.11</var>any of the conditions for certification by the municipality or county as provided in <br />
         		<a id="pl.7.12"></a><var>7.12</var>this subdivision exist, the unexecuted instrument must be certified by the clerk of the <br />
         		<a id="pl.7.13"></a><var>7.13</var>municipality or the designated county planning official.<br />
         		<a id="pl.7.14"></a><var>7.14</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Applicability of restrictions.</b> (a) This section does not apply to the <br />
         		<a id="pl.7.15"></a><var>7.15</var>exceptions set forth in section 
         <statute_ref>272.12</statute_ref>.<br />
         		<a id="pl.7.16"></a><var>7.16</var>(b) This section applies only to land within municipalities or counties which choose <br />
         		<a id="pl.7.17"></a><var>7.17</var>to be governed by its provisions. A municipality or county may choose to have this <br />
         		<a id="pl.7.18"></a><var>7.18</var>section apply to the property within its boundaries by filing a certified copy of a resolution <br />
         		<a id="pl.7.19"></a><var>7.19</var>of its governing body making that choice with the auditor and recorder of the county in <br />
         		<a id="pl.7.20"></a><var>7.20</var>which it is located.<br />
         		<a id="pl.7.21"></a><var>7.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.7.0"></a><a id="pl.7.22"></a><var>7.22</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 273.13, subdivision 34, is amended to read:<br />
         		<a id="pl.7.23"></a><var>7.23</var>&#160;&#160;&#160;&#160;Subd. 34. <b>Homestead of disabled veteran or family caregiver.</b> (a) All or a <br />
         		<a id="pl.7.24"></a><var>7.24</var>portion of the market value of property owned by a veteran and serving as the veteran's <br />
         		<a id="pl.7.25"></a><var>7.25</var>homestead under this section is excluded in determining the property's taxable market <br />
         		<a id="pl.7.26"></a><var>7.26</var>value if the veteran has a service-connected disability of 70 percent or more as certified <br />
         		<a id="pl.7.27"></a><var>7.27</var>by the United States Department of Veterans Affairs. To qualify for exclusion under this <br />
         		<a id="pl.7.28"></a><var>7.28</var>subdivision, the veteran must have been honorably discharged from the United States <br />
         		<a id="pl.7.29"></a><var>7.29</var>armed forces, as indicated by United States Government Form DD214 or other official <br />
         		<a id="pl.7.30"></a><var>7.30</var>military discharge papers.<br />
         		<a id="pl.7.31"></a><var>7.31</var>&#160;&#160;&#160;&#160;(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is <br />
         		<a id="pl.7.32"></a><var>7.32</var>excluded, except as provided in clause (2); and<br />
         		<a id="pl.7.33"></a><var>7.33</var>&#160;&#160;&#160;&#160;(2) for a total (100 percent) and permanent disability, $300,000 of market value is <br />
         		<a id="pl.7.34"></a><var>7.34</var>excluded.<br />
         		<a id="pl.8.1"></a><var>8.1</var>&#160;&#160;&#160;&#160;(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), <br />
         		<a id="pl.8.2"></a><var>8.2</var>clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the <br />
         		<a id="pl.8.3"></a><var>8.3</var>spouse holds the legal or beneficial title to the homestead and permanently resides there, <br />
         		<a id="pl.8.4"></a><var>8.4</var>the exclusion shall carry over to the benefit of the veteran's spouse for the current taxes <br />
         		<a id="pl.8.5"></a><var>8.5</var>payable year and for eight additional taxes payable years or until such time as the spouse <br />
         		<a id="pl.8.6"></a><var>8.6</var>remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first. <br />
         		<a id="pl.8.7"></a><var>8.7</var>Qualification under this paragraph requires an annual application under paragraph (h).<br />
         		<a id="pl.8.8"></a><var>8.8</var>(d) If the spouse of a member of any branch or unit of the United States armed <br />
         		<a id="pl.8.9"></a><var>8.9</var>forces who dies due to a service-connected cause while serving honorably in active <br />
         		<a id="pl.8.10"></a><var>8.10</var>service, as indicated on United States Government Form DD1300 or DD2064, holds <br />
         		<a id="pl.8.11"></a><var>8.11</var>the legal or beneficial title to a homestead and permanently resides there, the spouse is <br />
         		<a id="pl.8.12"></a><var>8.12</var>entitled to the benefit described in paragraph (b), clause (2), for eight taxes payable years, <br />
         		<a id="pl.8.13"></a><var>8.13</var>or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the <br />
         		<a id="pl.8.14"></a><var>8.14</var>property, whichever comes first.<br />
         		<a id="pl.8.15"></a><var>8.15</var>(e) If a veteran meets the disability criteria of paragraph (a) but does not own <br />
         		<a id="pl.8.16"></a><var>8.16</var>property classified as homestead in the state of Minnesota, then the homestead of the <br />
         		<a id="pl.8.17"></a><var>8.17</var>veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran <br />
         		<a id="pl.8.18"></a><var>8.18</var>would otherwise qualify for under paragraph (b).<br />
         		<a id="pl.8.19"></a><var>8.19</var>&#160;&#160;&#160;&#160;(f) In the case of an agricultural homestead, only the portion of the property <br />
         		<a id="pl.8.20"></a><var>8.20</var>consisting of the house and garage and immediately surrounding one acre of land qualifies <br />
         		<a id="pl.8.21"></a><var>8.21</var>for the valuation exclusion under this subdivision.<br />
         		<a id="pl.8.22"></a><var>8.22</var>&#160;&#160;&#160;&#160;(g) A property qualifying for a valuation exclusion under this subdivision is not <br />
         		<a id="pl.8.23"></a><var>8.23</var>eligible for the market value exclusion under subdivision 35, or classification under <br />
         		<a id="pl.8.24"></a><var>8.24</var>subdivision 22, paragraph (b).<br />
         		<a id="pl.8.25"></a><var>8.25</var>&#160;&#160;&#160;&#160;(h) To qualify for a valuation exclusion under this subdivision a property owner <br />
         		<a id="pl.8.26"></a><var>8.26</var>must apply to the assessor by July 1 of each assessment year, except that an annual <br />
         		<a id="pl.8.27"></a><var>8.27</var>reapplication is not required once a property has been accepted for a valuation exclusion <br />
         		<a id="pl.8.28"></a><var>8.28</var>under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and <br />
         		<a id="pl.8.29"></a><var>8.29</var>the property continues to qualify until there is a change in ownership. For an application <br />
         		<a id="pl.8.30"></a><var>8.30</var>received after July 1 of any calendar year, the exclusion shall become effective for the <br />
         		<a id="pl.8.31"></a><var>8.31</var>following assessment year.<br />
         		<a id="pl.8.32"></a><var>8.32</var>(i) A first-time application by a qualifying spouse for the market value exclusion under <br />
         		<a id="pl.8.33"></a><var>8.33</var>paragraph (d) must be made any time within two years of the death of the service member.<br />
         		<a id="pl.8.34"></a><var>8.34</var>(j) For purposes of this subdivision:<br />
         		<a id="pl.8.35"></a><var>8.35</var>(1) "active service" has the meaning given in section 
         <statute_ref>190.05</statute_ref>;<br />
         		<a id="pl.8.36"></a><var>8.36</var>(2) "own" means that the person's name is present as an owner on the property deed;<br />
         		<a id="pl.9.1"></a><var>9.1</var>(3) "primary family caregiver" means a person who is approved by the secretary of <br />
         		<a id="pl.9.2"></a><var>9.2</var>the United States Department of Veterans Affairs for assistance as the primary provider <br />
         		<a id="pl.9.3"></a><var>9.3</var>of personal care services for an eligible veteran under the Program of Comprehensive <br />
         		<a id="pl.9.4"></a><var>9.4</var>Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G; <br />
         		<a id="pl.9.5"></a><var>9.5</var>and<br />
         		<a id="pl.9.6"></a><var>9.6</var>(4) "veteran" has the meaning given the term in section 
         <statute_ref>197.447</statute_ref>.<br />
         		<a id="pl.9.7"></a><var>9.7</var>(k) The purpose of this provision of law providing a level of homestead property tax <br />
         		<a id="pl.9.8"></a><var>9.8</var>relief for gravely disabled veterans, their primary family caregivers, and their surviving <br />
         		<a id="pl.9.9"></a><var>9.9</var>spouses is to help ease the burdens of war for those among our state's citizens who bear <br />
         		<a id="pl.9.10"></a><var>9.10</var>those burdens most heavily.<br />
         		<a id="pl.9.11"></a><var>9.11</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.1.8.0"></a><a id="pl.9.12"></a><var>9.12</var>&#160;&#160;&#160;&#160;Sec. 8. Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:<br />
         		<a id="pl.9.13"></a><var>9.13</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Levy amount.</b> The state general levy is levied against <br />
         		<a id="pl.9.14"></a><var>9.14</var>commercial-industrial property and seasonal residential recreational property, as defined <br />
         		<a id="pl.9.15"></a><var>9.15</var>in this section. The state general levy base amount for commercial-industrial property is <br />
         		<a id="pl.9.16"></a><var>9.16</var>$592,000,000 $762,664,000 for taxes payable in 2002 2017. The state general levy base <br />
         		<a id="pl.9.17"></a><var>9.17</var>amount for seasonal-recreational property is $43,111,000 for taxes payable in 2017. For <br />
         		<a id="pl.9.18"></a><var>9.18</var>taxes payable in subsequent years, the each levy base amount is increased each year by <br />
         		<a id="pl.9.19"></a><var>9.19</var>multiplying the levy base amount for the prior year by the sum of one plus the rate of <br />
         		<a id="pl.9.20"></a><var>9.20</var>increase, if any, in the implicit price deflator for government consumption expenditures <br />
         		<a id="pl.9.21"></a><var>9.21</var>and gross investment for state and local governments prepared by the Bureau of Economic <br />
         		<a id="pl.9.22"></a><var>9.22</var>Analysts of the United States Department of Commerce for the 12-month period ending <br />
         		<a id="pl.9.23"></a><var>9.23</var>March 31 of the year prior to the year the taxes are payable. The tax under this section is <br />
         		<a id="pl.9.24"></a><var>9.24</var>not treated as a local tax rate under section 
         <statute_ref>469.177</statute_ref> and is not the levy of a governmental <br />
         		<a id="pl.9.25"></a><var>9.25</var>unit under chapters 276A and 473F.<br />
         		<a id="pl.9.26"></a><var>9.26</var>The commissioner shall increase or decrease the preliminary or final rate rates for a <br />
         		<a id="pl.9.27"></a><var>9.27</var>year as necessary to account for errors and tax base changes that affected a preliminary or <br />
         		<a id="pl.9.28"></a><var>9.28</var>final rate for either of the two preceding years. Adjustments are allowed to the extent that <br />
         		<a id="pl.9.29"></a><var>9.29</var>the necessary information is available to the commissioner at the time the rates for a year <br />
         		<a id="pl.9.30"></a><var>9.30</var>must be certified, and for the following reasons:<br />
         		<a id="pl.9.31"></a><var>9.31</var>(1) an erroneous report of taxable value by a local official;<br />
         		<a id="pl.9.32"></a><var>9.32</var>(2) an erroneous calculation by the commissioner; and<br />
         		<a id="pl.9.33"></a><var>9.33</var>(3) an increase or decrease in taxable value for commercial-industrial or seasonal <br />
         		<a id="pl.9.34"></a><var>9.34</var>residential recreational property reported on the abstracts of tax lists submitted under <br />
         		<a id="pl.10.1"></a><var>10.1</var>section 
         <statute_ref>275.29</statute_ref> that was not reported on the abstracts of assessment submitted under <br />
         		<a id="pl.10.2"></a><var>10.2</var>section 
         <statute_ref>270C.89</statute_ref> for the same year.<br />
         		<a id="pl.10.3"></a><var>10.3</var>The commissioner may, but need not, make adjustments if the total difference in the tax <br />
         		<a id="pl.10.4"></a><var>10.4</var>levied for the year would be less than $100,000.<br />
         		<a id="pl.10.5"></a><var>10.5</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.1.9.0"></a><a id="pl.10.6"></a><var>10.6</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2014, section 275.025, subdivision 2, is amended to read:<br />
         		<a id="pl.10.7"></a><var>10.7</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Commercial-industrial tax capacity.</b> For the purposes of this section, <br />
         		<a id="pl.10.8"></a><var>10.8</var>"commercial-industrial tax capacity" means the tax capacity of all taxable property <br />
         		<a id="pl.10.9"></a><var>10.9</var>classified as class 3 or class 5(1) under section 
         <statute_ref>273.13</statute_ref>, except for excluding: (1) the first <br />
         		<a id="pl.10.10"></a><var>10.10</var>$100,000 of market value of each parcel of commercial-industrial net tax capacity as <br />
         		<a id="pl.10.11"></a><var>10.11</var>defined under section 273.13, subdivision 24, clauses (1) and (2); (2)  electric generation <br />
         		<a id="pl.10.12"></a><var>10.12</var>attached machinery under class 3; and (3) property described in section 
         <statute_ref>473.625</statute_ref>. County <br />
         		<a id="pl.10.13"></a><var>10.13</var>commercial-industrial tax capacity amounts are not adjusted for the captured net tax <br />
         		<a id="pl.10.14"></a><var>10.14</var>capacity of a tax increment financing district under section 
         <statute_ref>469.177, subdivision 2</statute_ref>, the <br />
         		<a id="pl.10.15"></a><var>10.15</var>net tax capacity of transmission lines deducted from a local government's total net tax <br />
         		<a id="pl.10.16"></a><var>10.16</var>capacity under section 
         <statute_ref>273.425</statute_ref>, or fiscal disparities contribution and distribution net tax <br />
         		<a id="pl.10.17"></a><var>10.17</var>capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures <br />
         		<a id="pl.10.18"></a><var>10.18</var>for determining eligibility for tier 1 under section 273.13, subdivision 24, clause (1), <br />
         		<a id="pl.10.19"></a><var>10.19</var>shall apply in determining the portion of a property eligible to be considered within the <br />
         		<a id="pl.10.20"></a><var>10.20</var>first $100,000 of market value.<br />
         		<a id="pl.10.21"></a><var>10.21</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.1.10.0"></a><a id="pl.10.22"></a><var>10.22</var>&#160;&#160;&#160;&#160;Sec. 10. Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read:<br />
         		<a id="pl.10.23"></a><var>10.23</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Apportionment and levy of state general tax.</b> Ninety-five percent of The <br />
         		<a id="pl.10.24"></a><var>10.24</var>state general tax must be levied by applying a uniform rate to all commercial-industrial tax <br />
         		<a id="pl.10.25"></a><var>10.25</var>capacity and five percent of the state general tax must be levied by applying a uniform <br />
         		<a id="pl.10.26"></a><var>10.26</var>rate to all seasonal residential recreational tax capacity. On or before October 1 each year, <br />
         		<a id="pl.10.27"></a><var>10.27</var>the commissioner of revenue shall certify the preliminary state general levy rates to each <br />
         		<a id="pl.10.28"></a><var>10.28</var>county auditor that must be used to prepare the notices of proposed property taxes for taxes <br />
         		<a id="pl.10.29"></a><var>10.29</var>payable in the following year. By January 1 of each year, the commissioner shall certify the <br />
         		<a id="pl.10.30"></a><var>10.30</var>final state general levy rate rates to each county auditor that shall be used in spreading taxes.<br />
         		<a id="pl.10.31"></a><var>10.31</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.1.11.0"></a><a id="pl.10.32"></a><var>10.32</var>&#160;&#160;&#160;&#160;Sec. 11. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:<br />
         		<a id="pl.11.1"></a><var>11.1</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the <br />
         		<a id="pl.11.2"></a><var>11.2</var>contrary, on or before September 30, each county and each, home rule charter or statutory <br />
         		<a id="pl.11.3"></a><var>11.3</var>city, and special taxing district, excluding the Metropolitan Council and the Metropolitan <br />
         		<a id="pl.11.4"></a><var>11.4</var>Mosquito Control District, shall certify to the county auditor the proposed property tax <br />
         		<a id="pl.11.5"></a><var>11.5</var>levy for taxes payable in the following year. The proposed levy certification date for <br />
         		<a id="pl.11.6"></a><var>11.6</var>the Metropolitan Council shall be as prescribed in sections 473.249 and 473.446. The <br />
         		<a id="pl.11.7"></a><var>11.7</var>proposed levy certification date for the Metropolitan Mosquito Control District shall be <br />
         		<a id="pl.11.8"></a><var>11.8</var>as prescribed in section 473.711.<br />
         		<a id="pl.11.9"></a><var>11.9</var>&#160;&#160;&#160;&#160;(b) Notwithstanding any law or charter to the contrary, on or before September 15, <br />
         		<a id="pl.11.10"></a><var>11.10</var>each town and each special taxing district, the Metropolitan Council, and the Metropolitan <br />
         		<a id="pl.11.11"></a><var>11.11</var>Mosquito Control District shall adopt and certify to the county auditor a proposed property <br />
         		<a id="pl.11.12"></a><var>11.12</var>tax levy for taxes payable in the following year. For towns, the final certified levy shall <br />
         		<a id="pl.11.13"></a><var>11.13</var>also be considered the proposed levy.<br />
         		<a id="pl.11.14"></a><var>11.14</var>&#160;&#160;&#160;&#160;(c) On or before September 30, each school district that has not mutually agreed <br />
         		<a id="pl.11.15"></a><var>11.15</var>with its home county to extend this date shall certify to the county auditor the proposed <br />
         		<a id="pl.11.16"></a><var>11.16</var>property tax levy for taxes payable in the following year. Each school district that has <br />
         		<a id="pl.11.17"></a><var>11.17</var>agreed with its home county to delay the certification of its proposed property tax levy <br />
         		<a id="pl.11.18"></a><var>11.18</var>must certify its proposed property tax levy for the following year no later than October <br />
         		<a id="pl.11.19"></a><var>11.19</var>7. The school district shall certify the proposed levy as:<br />
         		<a id="pl.11.20"></a><var>11.20</var>&#160;&#160;&#160;&#160;(1) a specific dollar amount by school district fund, broken down between <br />
         		<a id="pl.11.21"></a><var>11.21</var>voter-approved and non-voter-approved levies and between referendum market value <br />
         		<a id="pl.11.22"></a><var>11.22</var>and tax capacity levies; or<br />
         		<a id="pl.11.23"></a><var>11.23</var>&#160;&#160;&#160;&#160;(2) the maximum levy limitation certified by the commissioner of education <br />
         		<a id="pl.11.24"></a><var>11.24</var>according to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br />
         		<a id="pl.11.25"></a><var>11.25</var>&#160;&#160;&#160;&#160;(d) If the board of estimate and taxation or any similar board that establishes <br />
         		<a id="pl.11.26"></a><var>11.26</var>maximum tax levies for taxing jurisdictions within a first class city certifies the maximum <br />
         		<a id="pl.11.27"></a><var>11.27</var>property tax levies for funds under its jurisdiction by charter to the county auditor by the <br />
         		<a id="pl.11.28"></a><var>11.28</var>date specified in paragraph (a), the city shall be deemed to have certified its levies for <br />
         		<a id="pl.11.29"></a><var>11.29</var>those taxing jurisdictions.<br />
         		<a id="pl.11.30"></a><var>11.30</var>&#160;&#160;&#160;&#160;(e) For purposes of this section, "special taxing district" means a special taxing <br />
         		<a id="pl.11.31"></a><var>11.31</var>district as defined in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts that levy a tax <br />
         		<a id="pl.11.32"></a><var>11.32</var>under chapter 124 or 136D, joint powers boards established under sections 
         <statute_ref>123A.44</statute_ref> to <br />
         		
         <statute_ref><a id="pl.11.33"></a><var>11.33</var>123A.446
         </statute_ref>, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are <br />
         		<a id="pl.11.34"></a><var>11.34</var>also special taxing districts for purposes of this section.<br />
         		<a id="pl.11.35"></a><var>11.35</var>(f) At the meeting at which a taxing authority, other than a town, adopts its proposed <br />
         		<a id="pl.11.36"></a><var>11.36</var>tax levy under this subdivision, the taxing authority shall announce the time and place <br />
         		<a id="pl.12.1"></a><var>12.1</var>of its subsequent regularly scheduled meetings at which the budget and levy will be <br />
         		<a id="pl.12.2"></a><var>12.2</var>discussed and at which the public will be allowed to speak. The time and place of those <br />
         		<a id="pl.12.3"></a><var>12.3</var>meetings must be included in the proceedings or summary of proceedings published in the <br />
         		<a id="pl.12.4"></a><var>12.4</var>official newspaper of the taxing authority under section 
         <statute_ref>123B.09</statute_ref>, 
         <statute_ref>375.12</statute_ref>, or 
         <statute_ref>412.191</statute_ref>.<br />
         		<a id="pl.12.5"></a><var>12.5</var><b>EFFECTIVE DATE.</b>This section is effective beginning with proposed levy <br />
         		<a id="pl.12.6"></a><var>12.6</var>certifications for taxes payable in 2017.<br />
         		<br />
         		<a id="bill.1.12.0"></a><a id="pl.12.7"></a><var>12.7</var>&#160;&#160;&#160;&#160;Sec. 12. Minnesota Statutes 2014, section 275.066, is amended to read:<br />
         		<a id="pl.12.8"></a><var>12.8</var><b>275.066 SPECIAL TAXING DISTRICTS; DEFINITION.</b><br />
         		<a id="pl.12.9"></a><var>12.9</var>&#160;&#160;&#160;&#160;For the purposes of property taxation and property tax state aids, the term "special <br />
         		<a id="pl.12.10"></a><var>12.10</var>taxing districts" includes the following entities:<br />
         		<a id="pl.12.11"></a><var>12.11</var>&#160;&#160;&#160;&#160;(1) watershed districts under chapter 103D;<br />
         		<a id="pl.12.12"></a><var>12.12</var>&#160;&#160;&#160;&#160;(2) sanitary districts under sections 
         <statute_ref>442A.01</statute_ref> to 
         <statute_ref>442A.29</statute_ref>;<br />
         		<a id="pl.12.13"></a><var>12.13</var>&#160;&#160;&#160;&#160;(3) regional sanitary sewer districts under sections 
         <statute_ref>115.61</statute_ref> to 
         <statute_ref>115.67</statute_ref>;<br />
         		<a id="pl.12.14"></a><var>12.14</var>&#160;&#160;&#160;&#160;(4) regional public library districts under section 
         <statute_ref>134.201</statute_ref>;<br />
         		<a id="pl.12.15"></a><var>12.15</var>&#160;&#160;&#160;&#160;(5) park districts under chapter 398;<br />
         		<a id="pl.12.16"></a><var>12.16</var>&#160;&#160;&#160;&#160;(6) regional railroad authorities under chapter 398A;<br />
         		<a id="pl.12.17"></a><var>12.17</var>&#160;&#160;&#160;&#160;(7) hospital districts under sections 
         <statute_ref>447.31</statute_ref> to 
         <statute_ref>447.38</statute_ref>;<br />
         		<a id="pl.12.18"></a><var>12.18</var>&#160;&#160;&#160;&#160;(8) St. Cloud Metropolitan Transit Commission under sections 
         <statute_ref>458A.01</statute_ref> to 
         <statute_ref>458A.15</statute_ref>;<br />
         		<a id="pl.12.19"></a><var>12.19</var>&#160;&#160;&#160;&#160;(9) Duluth Transit Authority under sections 
         <statute_ref>458A.21</statute_ref> to 
         <statute_ref>458A.37</statute_ref>;<br />
         		<a id="pl.12.20"></a><var>12.20</var>&#160;&#160;&#160;&#160;(10) regional development commissions under sections 
         <statute_ref>462.381</statute_ref> to 
         <statute_ref>462.398</statute_ref>;<br />
         		<a id="pl.12.21"></a><var>12.21</var>&#160;&#160;&#160;&#160;(11) housing and redevelopment authorities under sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>;<br />
         		<a id="pl.12.22"></a><var>12.22</var>&#160;&#160;&#160;&#160;(12) port authorities under sections 
         <statute_ref>469.048</statute_ref> to 
         <statute_ref>469.068</statute_ref>;<br />
         		<a id="pl.12.23"></a><var>12.23</var>&#160;&#160;&#160;&#160;(13) economic development authorities under sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.1081</statute_ref>;<br />
         		<a id="pl.12.24"></a><var>12.24</var>&#160;&#160;&#160;&#160;(14) Metropolitan Council under sections 
         <statute_ref>473.123</statute_ref> to 
         <statute_ref>473.549</statute_ref>;<br />
         		<a id="pl.12.25"></a><var>12.25</var>&#160;&#160;&#160;&#160;(15) Metropolitan Airports Commission under sections 
         <statute_ref>473.601</statute_ref> to 
         <statute_ref>473.679</statute_ref>;<br />
         		<a id="pl.12.26"></a><var>12.26</var>&#160;&#160;&#160;&#160;(16) Metropolitan Mosquito Control Commission under sections 
         <statute_ref>473.701</statute_ref> to 
         <statute_ref>473.716</statute_ref>;<br />
         		<a id="pl.12.27"></a><var>12.27</var>&#160;&#160;&#160;&#160;(17) Morrison County Rural Development Financing Authority under Laws 1982, <br />
         		<a id="pl.12.28"></a><var>12.28</var>chapter 437, section 1;<br />
         		<a id="pl.12.29"></a><var>12.29</var>&#160;&#160;&#160;&#160;(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;<br />
         		<a id="pl.12.30"></a><var>12.30</var>&#160;&#160;&#160;&#160;(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, <br />
         		<a id="pl.12.31"></a><var>12.31</var>sections 1 to 6;<br />
         		<a id="pl.12.32"></a><var>12.32</var>&#160;&#160;&#160;&#160;(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article <br />
         		<a id="pl.12.33"></a><var>12.33</var>5, section 39;<br />
         		<a id="pl.13.1"></a><var>13.1</var>&#160;&#160;&#160;&#160;(21) Middle Mississippi River Watershed Management Organization under sections <br />
         		
         <statute_ref><a id="pl.13.2"></a><var>13.2</var>103B.211
         </statute_ref> and 
         <statute_ref>103B.241</statute_ref>;<br />
         		<a id="pl.13.3"></a><var>13.3</var>&#160;&#160;&#160;&#160;(22) emergency medical services special taxing districts under section 144F.01;<br />
         		<a id="pl.13.4"></a><var>13.4</var>&#160;&#160;&#160;&#160;(23) a county levying under the authority of section 
         <statute_ref>103B.241</statute_ref>, 
         <statute_ref>103B.245</statute_ref>, or <br />
         		<a id="pl.13.5"></a><var>13.5</var><statute_ref>103B.251, or 103C.331</statute_ref>;<br />
         		<a id="pl.13.6"></a><var>13.6</var>&#160;&#160;&#160;&#160;(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home <br />
         		<a id="pl.13.7"></a><var>13.7</var>under Laws 2003, First Special Session chapter 21, article 4, section 12;<br />
         		<a id="pl.13.8"></a><var>13.8</var>&#160;&#160;&#160;&#160;(25) an airport authority created under section 
         <statute_ref>360.0426</statute_ref>; and<br />
         		<a id="pl.13.9"></a><var>13.9</var>&#160;&#160;&#160;&#160;(26) any other political subdivision of the state of Minnesota, excluding counties, <br />
         		<a id="pl.13.10"></a><var>13.10</var>school districts, cities, and towns, that has the power to adopt and certify a property tax <br />
         		<a id="pl.13.11"></a><var>13.11</var>levy to the county auditor, as determined by the commissioner of revenue.<br />
         		<a id="pl.13.12"></a><var>13.12</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2017 and <br />
         		<a id="pl.13.13"></a><var>13.13</var>thereafter.<br />
         		<br />
         		<a id="bill.1.13.0"></a><a id="pl.13.14"></a><var>13.14</var>&#160;&#160;&#160;&#160;Sec. 13. Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read:<br />
         		<a id="pl.13.15"></a><var>13.15</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Certification of levy.</b> (a) Except as provided under paragraph (b), <br />
         		<a id="pl.13.16"></a><var>13.16</var>the taxes voted by cities, counties, school districts, and special districts shall be certified <br />
         		<a id="pl.13.17"></a><var>13.17</var>by the proper authorities to the county auditor on or before five working days after <br />
         		<a id="pl.13.18"></a><var>13.18</var>December 20 in each year. A town must certify the levy adopted by the town board to <br />
         		<a id="pl.13.19"></a><var>13.19</var>the county auditor by September 15 each year. If the town board modifies the levy at a <br />
         		<a id="pl.13.20"></a><var>13.20</var>special town meeting after September 15, the town board must recertify its levy to the <br />
         		<a id="pl.13.21"></a><var>13.21</var>county auditor on or before five working days after December 20. If a city, town, county, <br />
         		<a id="pl.13.22"></a><var>13.22</var>school district, or special district fails to certify its levy by that date, its levy shall be the <br />
         		<a id="pl.13.23"></a><var>13.23</var>amount levied by it for the preceding year.<br />
         		<a id="pl.13.24"></a><var>13.24</var>(b)(i) The taxes voted by counties under sections 
         <statute_ref>103B.241</statute_ref>, 
         <statute_ref>103B.245</statute_ref>, and <br />
         		<a id="pl.13.25"></a><var>13.25</var><statute_ref>103B.251</statute_ref>, and 103C.331 shall be separately certified by the county to the county auditor <br />
         		<a id="pl.13.26"></a><var>13.26</var>on or before five working days after December 20 in each year. The taxes certified <br />
         		<a id="pl.13.27"></a><var>13.27</var>shall not be reduced by the county auditor by the aid received under section 
         <statute_ref>273.1398, <br />
            		<a id="pl.13.28"></a><var>13.28</var>subdivision 3
         </statute_ref>. If a county fails to certify its levy by that date, its levy shall be the amount <br />
         		<a id="pl.13.29"></a><var>13.29</var>levied by it for the preceding year.<br />
         		<a id="pl.13.30"></a><var>13.30</var>(ii) For purposes of the proposed property tax notice under section 
         <statute_ref>275.065</statute_ref> and <br />
         		<a id="pl.13.31"></a><var>13.31</var>the property tax statement under section 
         <statute_ref>276.04</statute_ref>, for the first year in which the county <br />
         		<a id="pl.13.32"></a><var>13.32</var>implements the provisions of this paragraph, the county auditor shall reduce the county's <br />
         		<a id="pl.13.33"></a><var>13.33</var>levy for the preceding year to reflect any amount levied for water management purposes <br />
         		<a id="pl.13.34"></a><var>13.34</var>under clause (i) included in the county's levy.<br />
         		<a id="pl.14.1"></a><var>14.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2017 and <br />
         		<a id="pl.14.2"></a><var>14.2</var>thereafter.<br />
         		<br />
         		<a id="bill.1.14.0"></a><a id="pl.14.3"></a><var>14.3</var>&#160;&#160;&#160;&#160;Sec. 14. Minnesota Statutes 2014, section 276.11, subdivision 1, is amended to read:<br />
         		<a id="pl.14.4"></a><var>14.4</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Generally.</b> As soon as practical after the settlement day determined <br />
         		<a id="pl.14.5"></a><var>14.5</var>in section 
         <statute_ref>276.09</statute_ref>, the county treasurer shall pay to the treasurer of a town, city, school <br />
         		<a id="pl.14.6"></a><var>14.6</var>district, or special district, on the warrant of the county auditor, all receipts of taxes levied <br />
         		<a id="pl.14.7"></a><var>14.7</var>by the taxing district and deliver up all orders and other evidences of indebtedness of <br />
         		<a id="pl.14.8"></a><var>14.8</var>the taxing district, taking triplicate receipts for them. The treasurer shall file one of the <br />
         		<a id="pl.14.9"></a><var>14.9</var>receipts with the county auditor, and shall return one by mail on the day of its receipt to <br />
         		<a id="pl.14.10"></a><var>14.10</var>the clerk of the town, city, school district, or special district to which payment was made. <br />
         		<a id="pl.14.11"></a><var>14.11</var>The clerk shall keep the receipt in the clerk's office. Upon written request of the taxing <br />
         		<a id="pl.14.12"></a><var>14.12</var>district, to the extent practicable, the county treasurer shall make partial payments of <br />
         		<a id="pl.14.13"></a><var>14.13</var>amounts collected periodically in advance of the next settlement and distribution. A <br />
         		<a id="pl.14.14"></a><var>14.14</var>statement prepared by the county treasurer must accompany each payment. It must state <br />
         		<a id="pl.14.15"></a><var>14.15</var>the years for which taxes included in the payment were collected and, for each year, the <br />
         		<a id="pl.14.16"></a><var>14.16</var>amount of the taxes and any penalties on the tax. Upon written request of a taxing district, <br />
         		<a id="pl.14.17"></a><var>14.17</var>except school districts, the county treasurer shall pay at least 70 percent of the estimated <br />
         		<a id="pl.14.18"></a><var>14.18</var>collection within 30 days after the settlement date determined in section 
         <statute_ref>276.09</statute_ref>. Within <br />
         		<a id="pl.14.19"></a><var>14.19</var>seven eight business days after the due date, or 28 calendar days after the postmark date <br />
         		<a id="pl.14.20"></a><var>14.20</var>on the envelopes containing real or personal property tax statements, whichever is latest, <br />
         		<a id="pl.14.21"></a><var>14.21</var>the county treasurer shall pay to the treasurer of the school districts 50 percent of the <br />
         		<a id="pl.14.22"></a><var>14.22</var>estimated collections arising from taxes levied by and belonging to the school district, <br />
         		<a id="pl.14.23"></a><var>14.23</var>unless the school district elects to receive 50 percent of the estimated collections arising <br />
         		<a id="pl.14.24"></a><var>14.24</var>from taxes levied by and belonging to the school district after making a proportionate <br />
         		<a id="pl.14.25"></a><var>14.25</var>reduction to reflect any loss in collections as the result of any delay in mailing tax <br />
         		<a id="pl.14.26"></a><var>14.26</var>statements. In that case, 50 percent of those adjusted, estimated collections shall be paid <br />
         		<a id="pl.14.27"></a><var>14.27</var>by the county treasurer to the treasurer of the school district within seven business days of <br />
         		<a id="pl.14.28"></a><var>14.28</var>the due date. The remaining 50 percent of the estimated collections must be paid to the <br />
         		<a id="pl.14.29"></a><var>14.29</var>treasurer of the school district within the next seven business days of the later of the dates <br />
         		<a id="pl.14.30"></a><var>14.30</var>in the preceding sentence, unless the school district elects to receive the remainder of its <br />
         		<a id="pl.14.31"></a><var>14.31</var>estimated collections after a proportionate reduction has been made to reflect any loss in <br />
         		<a id="pl.14.32"></a><var>14.32</var>collections as the result of any delay in mailing tax statements. In that case, the remaining <br />
         		<a id="pl.14.33"></a><var>14.33</var>50 percent of those adjusted, estimated collections shall be paid by the county treasurer to <br />
         		<a id="pl.14.34"></a><var>14.34</var>the treasurer of the school district within 14 days of the due date. The treasurer shall pay <br />
         		<a id="pl.14.35"></a><var>14.35</var>the balance of the amounts collected to a municipal corporation or other body within 60 <br />
         		<a id="pl.15.1"></a><var>15.1</var>days after the settlement date determined in section 
         <statute_ref>276.09</statute_ref>. After 45 days interest at an <br />
         		<a id="pl.15.2"></a><var>15.2</var>annual rate of eight percent accrues and must be paid to the taxing district. Interest must <br />
         		<a id="pl.15.3"></a><var>15.3</var>be paid upon appropriation from the general revenue fund of the county. If not paid, it <br />
         		<a id="pl.15.4"></a><var>15.4</var>may be recovered by the taxing district, in a civil action.<br />
         		<a id="pl.15.5"></a><var>15.5</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2017 <br />
         		<a id="pl.15.6"></a><var>15.6</var>and thereafter.<br />
         		<br />
         		<a id="bill.1.15.0"></a><a id="pl.15.7"></a><var>15.7</var>&#160;&#160;&#160;&#160;Sec. 15. Minnesota Statutes 2014, section 276.111, is amended to read:<br />
         		<a id="pl.15.8"></a><var>15.8</var><b>276.111 DISTRIBUTIONS AND FINAL YEAR-END SETTLEMENT.</b><br />
         		<a id="pl.15.9"></a><var>15.9</var>Within seven eight business days after October 15, the county treasurer shall pay to <br />
         		<a id="pl.15.10"></a><var>15.10</var>the school districts 50 percent of the estimated collections arising from taxes levied by <br />
         		<a id="pl.15.11"></a><var>15.11</var>and belonging to the school district from the settlement day determined in section 
         <statute_ref>276.09</statute_ref> <br />
         		<a id="pl.15.12"></a><var>15.12</var>to October 20. The remaining 50 percent of the estimated tax collections must be paid <br />
         		<a id="pl.15.13"></a><var>15.13</var>to the school district within the next seven business days. Within ten 11 business days <br />
         		<a id="pl.15.14"></a><var>15.14</var>after November 15, the county treasurer shall pay to the school district 100 percent of the <br />
         		<a id="pl.15.15"></a><var>15.15</var>estimated collections arising from taxes levied by and belonging to the school districts <br />
         		<a id="pl.15.16"></a><var>15.16</var>from October 20 to November 20.<br />
         		<a id="pl.15.17"></a><var>15.17</var>Within ten 11 business days after November 15, the county treasurer shall pay to <br />
         		<a id="pl.15.18"></a><var>15.18</var>each taxing district, except any school district, 100 percent of the estimated collections <br />
         		<a id="pl.15.19"></a><var>15.19</var>arising from taxes levied by and belonging to each taxing district from the settlement day <br />
         		<a id="pl.15.20"></a><var>15.20</var>determined in section 
         <statute_ref>276.09</statute_ref> to November 20.<br />
         		<a id="pl.15.21"></a><var>15.21</var>On or before January 5, the county treasurer shall make full settlement with the <br />
         		<a id="pl.15.22"></a><var>15.22</var>county auditor of all receipts collected from the settlement day determined in section <br />
         		
         <statute_ref><a id="pl.15.23"></a><var>15.23</var>276.09
         </statute_ref> to December 31. After subtracting any tax distributions that have been made to <br />
         		<a id="pl.15.24"></a><var>15.24</var>the taxing districts in October and November, the treasurer shall pay to each of the taxing <br />
         		<a id="pl.15.25"></a><var>15.25</var>districts on or before January 25, the balance of the tax amounts collected on behalf of <br />
         		<a id="pl.15.26"></a><var>15.26</var>each taxing district. Interest accrues at an annual rate of eight percent and must be paid to <br />
         		<a id="pl.15.27"></a><var>15.27</var>the taxing district if this final settlement amount is not paid by January 25. Interest must <br />
         		<a id="pl.15.28"></a><var>15.28</var>be paid upon appropriation from the general revenue fund of the county. If not paid, it <br />
         		<a id="pl.15.29"></a><var>15.29</var>may be recovered by the taxing district in a civil action.<br />
         		<a id="pl.15.30"></a><var>15.30</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2017 <br />
         		<a id="pl.15.31"></a><var>15.31</var>and thereafter.<br />
         		<br />
         		<a id="bill.1.16.0"></a><a id="pl.15.32"></a><var>15.32</var>&#160;&#160;&#160;&#160;Sec. 16. Minnesota Statutes 2014, section 278.12, is amended to read:<br />
         		<a id="pl.15.33"></a><var>15.33</var><b>278.12 REFUNDS OF OVERPAYMENT.</b><br />
         		<a id="pl.16.1"></a><var>16.1</var>If upon final determination the petitioner has paid more than the amount so <br />
         		<a id="pl.16.2"></a><var>16.2</var>determined to be due, judgment shall be entered in favor of the petitioner for such excess, <br />
         		<a id="pl.16.3"></a><var>16.3</var>and upon filing a copy thereof with the county auditor the auditor shall forthwith draw a <br />
         		<a id="pl.16.4"></a><var>16.4</var>warrant upon the county treasurer for the payment thereof; provided that, with the consent <br />
         		<a id="pl.16.5"></a><var>16.5</var>of the petitioner, the county auditor may, in lieu of drawing such warrant, issue to the <br />
         		<a id="pl.16.6"></a><var>16.6</var>petitioner a certificate stating the amount of such judgment, which amount may be used <br />
         		<a id="pl.16.7"></a><var>16.7</var>to apply upon any taxes due or to become due over a prescribed period of years for the <br />
         		<a id="pl.16.8"></a><var>16.8</var>taxing district or districts whose taxes or assessments are reduced, or their successors in <br />
         		<a id="pl.16.9"></a><var>16.9</var>the event of a reorganization or reincorporation of any such taxing district. In the event the <br />
         		<a id="pl.16.10"></a><var>16.10</var>auditor shall issue a warrant for refund or certificates, the amount thereof shall be charged <br />
         		<a id="pl.16.11"></a><var>16.11</var>to the state and other taxing districts in proportion to the amount of their respective taxes <br />
         		<a id="pl.16.12"></a><var>16.12</var>included in the levy and deduct the same in the subsequent distribution of any tax proceeds <br />
         		<a id="pl.16.13"></a><var>16.13</var>to the state or such taxing districts, and upon receiving any such certificate in payment of <br />
         		<a id="pl.16.14"></a><var>16.14</var>other taxes, the amount thereof shall be distributed to the state and other taxing districts <br />
         		<a id="pl.16.15"></a><var>16.15</var>in proportion to the amount of their respective taxes included in the levy; provided that <br />
         		<a id="pl.16.16"></a><var>16.16</var>if in the judgment the levy of one or more of the districts be found to be illegal, to the <br />
         		<a id="pl.16.17"></a><var>16.17</var>extent that the tax so levied is reduced on account of the illegal levies, the amount to be <br />
         		<a id="pl.16.18"></a><var>16.18</var>charged back shall be charged to the districts and the amount thereof deducted from <br />
         		<a id="pl.16.19"></a><var>16.19</var>any distributions thereafter made to them.<br />
         		<a id="pl.16.20"></a><var>16.20</var><b>EFFECTIVE DATE.</b>This section is effective for refunds for overpayment of taxes <br />
         		<a id="pl.16.21"></a><var>16.21</var>payable in 2016 and thereafter.<br />
         		<br />
         		<a id="bill.1.17.0"></a><a id="pl.16.22"></a><var>16.22</var>&#160;&#160;&#160;&#160;Sec. 17. Minnesota Statutes 2014, section 278.14, subdivision 1, is amended to read:<br />
         		<a id="pl.16.23"></a><var>16.23</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Applicability.</b> A county must pay a refund of a mistakenly billed <br />
         		<a id="pl.16.24"></a><var>16.24</var>tax as provided in this section. As used in this section, "mistakenly billed tax" means an <br />
         		<a id="pl.16.25"></a><var>16.25</var>amount of property tax that was billed, to the extent the amount billed exceeds the accurate <br />
         		<a id="pl.16.26"></a><var>16.26</var>tax amount due to a misclassification of the owner's property under section 
         <statute_ref>273.13</statute_ref> or a <br />
         		<a id="pl.16.27"></a><var>16.27</var>mathematical error in the calculation of the tax on the owner's property, together with <br />
         		<a id="pl.16.28"></a><var>16.28</var>any penalty or interest paid on that amount. This section applies only to taxes payable <br />
         		<a id="pl.16.29"></a><var>16.29</var>in the current year and the two prior years. As used in this section, "mathematical error" <br />
         		<a id="pl.16.30"></a><var>16.30</var>is limited to an error in:<br />
         		<a id="pl.16.31"></a><var>16.31</var>(1) converting the market value of a property to tax capacity or to a referendum <br />
         		<a id="pl.16.32"></a><var>16.32</var>market value;<br />
         		<a id="pl.16.33"></a><var>16.33</var>(2) application of the tax rate as computed by the auditor under sections 
         <statute_ref>275.08, <br />
            		<a id="pl.16.34"></a><var>16.34</var>subdivisions 1b, 1c, and 1d
         </statute_ref>; 
         <statute_ref>276A.06</statute_ref>, subdivisions 4 and 5; and 
         <statute_ref>473F.07</statute_ref>, subdivisions 4 <br />
         		<a id="pl.16.35"></a><var>16.35</var>and 5, to the property's tax capacity or referendum market value; or<br />
         		<a id="pl.17.1"></a><var>17.1</var>(3) calculation of or eligibility for a credit.<br />
         		<a id="pl.17.2"></a><var>17.2</var>The remedy provided under this section does not apply to a misclassification under <br />
         		<a id="pl.17.3"></a><var>17.3</var>section 
         <statute_ref>273.13</statute_ref> that is due to the failure of the property owner to apply for the correct <br />
         		<a id="pl.17.4"></a><var>17.4</var>classification as required by law.<br />
         		<a id="pl.17.5"></a><var>17.5</var><b>EFFECTIVE DATE.</b>This section is effective based on property taxes payable in <br />
         		<a id="pl.17.6"></a><var>17.6</var>2017 and thereafter.<br />
         		<br />
         		<a id="bill.1.18.0"></a><a id="pl.17.7"></a><var>17.7</var>&#160;&#160;&#160;&#160;Sec. 18. Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read:<br />
         		<a id="pl.17.8"></a><var>17.8</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Due dates; penalties.</b> Except as provided in subdivisions 3 to 5, <br />
         		<a id="pl.17.9"></a><var>17.9</var>on May 16 or 21 days after the postmark date on the envelope containing the property <br />
         		<a id="pl.17.10"></a><var>17.10</var>tax statement, whichever is later, a penalty accrues and thereafter is charged upon all <br />
         		<a id="pl.17.11"></a><var>17.11</var>unpaid taxes on real estate on the current lists in the hands of the county treasurer. The <br />
         		<a id="pl.17.12"></a><var>17.12</var>(a) When the taxes against any tract or lot exceed $100, one-half of the amount of tax <br />
         		<a id="pl.17.13"></a><var>17.13</var>due must be paid prior to May 16, and the remaining one-half must be paid prior to the <br />
         		<a id="pl.17.14"></a><var>17.14</var>following October 16. If either tax amount is unpaid as of its due date, a penalty is <br />
         		<a id="pl.17.15"></a><var>17.15</var>imposed at a rate of two percent on homestead property until May 31 and four percent <br />
         		<a id="pl.17.16"></a><var>17.16</var>on nonhomestead property. If complete payment has not been made by the first day of <br />
         		<a id="pl.17.17"></a><var>17.17</var>the month following either due date, an additional penalty of two percent on June 1. The <br />
         		<a id="pl.17.18"></a><var>17.18</var>penalty on nonhomestead property is at a rate of four percent until May 31 homestead <br />
         		<a id="pl.17.19"></a><var>17.19</var>property and eight four percent on June 1. This penalty does not accrue until June 1 of <br />
         		<a id="pl.17.20"></a><var>17.20</var>each year, or 21 days after the postmark date on the envelope containing the property <br />
         		<a id="pl.17.21"></a><var>17.21</var>tax statements, whichever is later, on commercial use real property used for seasonal <br />
         		<a id="pl.17.22"></a><var>17.22</var>residential recreational purposes and classified as class 1c or 4c, and on other commercial <br />
         		<a id="pl.17.23"></a><var>17.23</var>use real property classified as class 3a, provided that over 60 percent of the gross income <br />
         		<a id="pl.17.24"></a><var>17.24</var>earned by the enterprise on the class 3a property is earned during the months of May, <br />
         		<a id="pl.17.25"></a><var>17.25</var>June, July, and August. In order for the first half of the tax due on class 3a property to be <br />
         		<a id="pl.17.26"></a><var>17.26</var>paid after May 15 and before June 1, or 21 days after the postmark date on the envelope <br />
         		<a id="pl.17.27"></a><var>17.27</var>containing the property tax statement, whichever is later, without penalty, the owner of <br />
         		<a id="pl.17.28"></a><var>17.28</var>the property must attach an affidavit to the payment attesting to compliance with the <br />
         		<a id="pl.17.29"></a><var>17.29</var>income provision of this subdivision nonhomestead property is imposed. Thereafter, <br />
         		<a id="pl.17.30"></a><var>17.30</var>for both homestead and nonhomestead property, on the first day of each subsequent <br />
         		<a id="pl.17.31"></a><var>17.31</var>month beginning July 1, up to and including October 1 following through December, an <br />
         		<a id="pl.17.32"></a><var>17.32</var>additional penalty of one percent for each month accrues and is charged on all such unpaid <br />
         		<a id="pl.17.33"></a><var>17.33</var>taxes provided that if the due date was extended beyond May 15 as the result of any delay <br />
         		<a id="pl.17.34"></a><var>17.34</var>in mailing property tax statements no additional penalty shall accrue if the tax is paid by <br />
         		<a id="pl.17.35"></a><var>17.35</var>the extended due date. If the tax is not paid by the extended due date, then all penalties <br />
         		<a id="pl.18.1"></a><var>18.1</var>that would have accrued if the due date had been May 15 shall be charged. When the taxes <br />
         		<a id="pl.18.2"></a><var>18.2</var>against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or <br />
         		<a id="pl.18.3"></a><var>18.3</var>21 days after the postmark date on the envelope containing the property tax statement, <br />
         		<a id="pl.18.4"></a><var>18.4</var>whichever is later; and, if so paid, no penalty attaches; the remaining one-half may be <br />
         		<a id="pl.18.5"></a><var>18.5</var>paid at any time prior to October 16 following, without penalty; but, if not so paid, then <br />
         		<a id="pl.18.6"></a><var>18.6</var>a penalty of two percent accrues thereon for homestead property and a penalty of four <br />
         		<a id="pl.18.7"></a><var>18.7</var>percent on nonhomestead property. Thereafter, for homestead property, on the first day of <br />
         		<a id="pl.18.8"></a><var>18.8</var>November an additional penalty of four percent accrues and on the first day of December <br />
         		<a id="pl.18.9"></a><var>18.9</var>following, an additional penalty of two percent accrues and is charged on all such unpaid <br />
         		<a id="pl.18.10"></a><var>18.10</var>taxes. Thereafter, for nonhomestead property, on the first day of November and December <br />
         		<a id="pl.18.11"></a><var>18.11</var>following, an additional penalty of four percent for each month accrues and is charged on <br />
         		<a id="pl.18.12"></a><var>18.12</var>all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days <br />
         		<a id="pl.18.13"></a><var>18.13</var>after the postmark date on the envelope containing the property tax statement, whichever <br />
         		<a id="pl.18.14"></a><var>18.14</var>is later, the same may be paid at any time prior to October 16, with accrued penalties to the <br />
         		<a id="pl.18.15"></a><var>18.15</var>date of payment added, and thereupon no penalty attaches to the remaining one-half until <br />
         		<a id="pl.18.16"></a><var>18.16</var>October 16 following the penalty must not exceed eight percent in the case of homestead <br />
         		<a id="pl.18.17"></a><var>18.17</var>property, or 12 percent in the case of nonhomestead property. <br />
         		<a id="pl.18.18"></a><var>18.18</var>(b) If the property tax statement was not postmarked prior to April 25, the first <br />
         		<a id="pl.18.19"></a><var>18.19</var>half payment due date in paragraph (a) shall be 21 days from the postmark date of the <br />
         		<a id="pl.18.20"></a><var>18.20</var>property tax statement, and all penalties referenced in paragraph (a) shall be determined <br />
         		<a id="pl.18.21"></a><var>18.21</var>with regard to the later due date.<br />
         		<a id="pl.18.22"></a><var>18.22</var>(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties <br />
         		<a id="pl.18.23"></a><var>18.23</var>as specified in paragraph (a) or (b) for the first half payment shall apply to the entire <br />
         		<a id="pl.18.24"></a><var>18.24</var>amount of the tax due.<br />
         		<a id="pl.18.25"></a><var>18.25</var>(d) For commercial use real property used for seasonal residential recreational <br />
         		<a id="pl.18.26"></a><var>18.26</var>purposes and classified as class 1c or 4c, and on other commercial use real property <br />
         		<a id="pl.18.27"></a><var>18.27</var>classified as class 3a, provided that over 60 percent of the gross income earned by the <br />
         		<a id="pl.18.28"></a><var>18.28</var>enterprise on the class 3a property is earned during the months of May, June, July, and <br />
         		<a id="pl.18.29"></a><var>18.29</var>August, penalty does not accrue until June 1 of each year. For a class 3a property to <br />
         		<a id="pl.18.30"></a><var>18.30</var>qualify for the later due date, the owner of the property must attach an affidavit to the <br />
         		<a id="pl.18.31"></a><var>18.31</var>payment attesting to compliance with the income requirements of this paragraph. <br />
         		<a id="pl.18.32"></a><var>18.32</var>&#160;&#160;&#160;&#160;(e) This section applies to payment of personal property taxes assessed against <br />
         		<a id="pl.18.33"></a><var>18.33</var>improvements to leased property, except as provided by section 
         <statute_ref>277.01, subdivision 3</statute_ref>.<br />
         		<a id="pl.18.34"></a><var>18.34</var>&#160;&#160;&#160;&#160;(f) A county may provide by resolution that in the case of a property owner that has <br />
         		<a id="pl.18.35"></a><var>18.35</var>multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in <br />
         		<a id="pl.18.36"></a><var>18.36</var>installments as provided in this subdivision.<br />
         		<a id="pl.19.1"></a><var>19.1</var>&#160;&#160;&#160;&#160;(g) The county treasurer may accept payments of more or less than the exact amount <br />
         		<a id="pl.19.2"></a><var>19.2</var>of a tax installment due. Payments must be applied first to the oldest installment that is due <br />
         		<a id="pl.19.3"></a><var>19.3</var>but which has not been fully paid. If the accepted payment is less than the amount due, <br />
         		<a id="pl.19.4"></a><var>19.4</var>payments must be applied first to the penalty accrued for the year or the installment being <br />
         		<a id="pl.19.5"></a><var>19.5</var>paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum <br />
         		<a id="pl.19.6"></a><var>19.6</var>payment required as a condition for filing an appeal under section 
         <statute_ref>278.03</statute_ref> or any other law, <br />
         		<a id="pl.19.7"></a><var>19.7</var>nor does it affect the order of payment of delinquent taxes under section 
         <statute_ref>280.39</statute_ref>.<br />
         		<a id="pl.19.8"></a><var>19.8</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.1.19.0"></a><a id="pl.19.9"></a><var>19.9</var>&#160;&#160;&#160;&#160;Sec. 19. Minnesota Statutes 2014, section 279.01, subdivision 2, is amended to read:<br />
         		<a id="pl.19.10"></a><var>19.10</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Abatement of penalty.</b> (a) The county board may, with the concurrence <br />
         		<a id="pl.19.11"></a><var>19.11</var>of the county treasurer, delegate to the county treasurer the power to abate the penalty <br />
         		<a id="pl.19.12"></a><var>19.12</var>provided for late payment of taxes in the current year. Notwithstanding section 
         <statute_ref>270C.86</statute_ref>, <br />
         		<a id="pl.19.13"></a><var>19.13</var>if any county board so elects, the county treasurer may abate the penalty on finding that <br />
         		<a id="pl.19.14"></a><var>19.14</var>the imposition of the penalty would be unjust and unreasonable.<br />
         		<a id="pl.19.15"></a><var>19.15</var>(b) The county treasurer shall abate the penalty provided for late payment of taxes in <br />
         		<a id="pl.19.16"></a><var>19.16</var>the current year if the property tax payment is delivered by mail to the county treasurer <br />
         		<a id="pl.19.17"></a><var>19.17</var>and the envelope containing the payment is postmarked by the United States Postal <br />
         		<a id="pl.19.18"></a><var>19.18</var>Service within one business day of the due date prescribed under this section, but only if <br />
         		<a id="pl.19.19"></a><var>19.19</var>the property owner requesting the abatement has not previously received an abatement <br />
         		<a id="pl.19.20"></a><var>19.20</var>of penalty for late payment of tax under this paragraph.<br />
         		<a id="pl.19.21"></a><var>19.21</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2017 <br />
         		<a id="pl.19.22"></a><var>19.22</var>and thereafter.<br />
         		<br />
         		<a id="bill.1.20.0"></a><a id="pl.19.23"></a><var>19.23</var>&#160;&#160;&#160;&#160;Sec. 20. Minnesota Statutes 2014, section 279.01, subdivision 3, is amended to read:<br />
         		<a id="pl.19.24"></a><var>19.24</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Agricultural property.</b> (a) In the case of class 1b agricultural homestead, <br />
         		<a id="pl.19.25"></a><var>19.25</var>class 2a agricultural homestead property, and class 2a agricultural nonhomestead property, <br />
         		<a id="pl.19.26"></a><var>19.26</var>no penalties shall attach to the second one-half property tax payment as provided in this <br />
         		<a id="pl.19.27"></a><var>19.27</var>section if paid by November 15. Thereafter for class 1b agricultural homestead and class <br />
         		<a id="pl.19.28"></a><var>19.28</var>2a homestead property, on November 16 following, a penalty of six percent shall accrue <br />
         		<a id="pl.19.29"></a><var>19.29</var>and be charged on all such unpaid taxes and on December 1 following, an additional two <br />
         		<a id="pl.19.30"></a><var>19.30</var>percent shall be charged on all such unpaid taxes. Thereafter for class 2a agricultural <br />
         		<a id="pl.19.31"></a><var>19.31</var>nonhomestead property, on November 16 following, a penalty of eight percent shall accrue <br />
         		<a id="pl.19.32"></a><var>19.32</var>and be charged on all such unpaid taxes and on December 1 following, an additional four <br />
         		<a id="pl.20.1"></a><var>20.1</var>percent shall be charged on all such unpaid taxes, penalties shall attach as provided in <br />
         		<a id="pl.20.2"></a><var>20.2</var>subdivision 1.<br />
         		<a id="pl.20.3"></a><var>20.3</var>If the owner of class 1b agricultural homestead or class 2a agricultural property <br />
         		<a id="pl.20.4"></a><var>20.4</var>receives a consolidated property tax statement that shows only an aggregate of the taxes <br />
         		<a id="pl.20.5"></a><var>20.5</var>and special assessments due on that property and on other property not classified as class <br />
         		<a id="pl.20.6"></a><var>20.6</var>1b agricultural homestead or class 2a agricultural property, the aggregate tax and special <br />
         		<a id="pl.20.7"></a><var>20.7</var>assessments shown due on the property by the consolidated statement will be due on <br />
         		<a id="pl.20.8"></a><var>20.8</var>November 15.<br />
         		<a id="pl.20.9"></a><var>20.9</var>(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class <br />
         		<a id="pl.20.10"></a><var>20.10</var>2b property that was subject to a second-half due date of November 15 for taxes payable <br />
         		<a id="pl.20.11"></a><var>20.11</var>in 2009, the county shall not impose, or if imposed, shall abate penalty amounts in excess <br />
         		<a id="pl.20.12"></a><var>20.12</var>of those that would apply as if the second-half due date were November 15.<br />
         		<a id="pl.20.13"></a><var>20.13</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.1.21.0"></a><a id="pl.20.14"></a><var>20.14</var>&#160;&#160;&#160;&#160;Sec. 21. Minnesota Statutes 2014, section 279.03, subdivision 2, is amended to read:<br />
         		<a id="pl.20.15"></a><var>20.15</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Rate for </b><b>composite judgment</b><b>; rate for homestead composite judgment, </b><br />
         		<a id="pl.20.16"></a><var>20.16</var><b>repurchase of forfeited homestead property, and sale of forfeited property</b><b>.</b> (a) Except <br />
         		<a id="pl.20.17"></a><var>20.17</var>as provided in paragraph (b), amounts included in composite judgments authorized <br />
         		<a id="pl.20.18"></a><var>20.18</var>by section 
         <statute_ref>279.37, subdivision 1</statute_ref>, are subject to interest at the rate calculated under <br />
         		<a id="pl.20.19"></a><var>20.19</var>subdivision 1a. During each calendar year, interest shall accrue on the unpaid balance <br />
         		<a id="pl.20.20"></a><var>20.20</var>of the composite judgment from the time it is confessed until it is paid. The interest rate <br />
         		<a id="pl.20.21"></a><var>20.21</var>established at the time the judgment is confessed is fixed for the duration of that judgment.<br />
         		<a id="pl.20.22"></a><var>20.22</var>(b) The following amounts are subject to interest as provided in paragraph (c):<br />
         		<a id="pl.20.23"></a><var>20.23</var>(1) amounts included in composite judgments on parcels classified as 1a or 1b <br />
         		<a id="pl.20.24"></a><var>20.24</var>and used as the homestead of the owner;<br />
         		<a id="pl.20.25"></a><var>20.25</var>(2) amounts in contracts for repurchase of property classified as 1a or 1b at the time <br />
         		<a id="pl.20.26"></a><var>20.26</var>of forfeiture or at the time that the repurchase application is approved; and<br />
         		<a id="pl.20.27"></a><var>20.27</var>(3) sales of forfeited property pursuant to section 282.01, subdivision 4.<br />
         		<a id="pl.20.28"></a><var>20.28</var>(b) A confession of judgment covering any part of a parcel classified as 1a or 1b, <br />
         		<a id="pl.20.29"></a><var>20.29</var>and used as the homestead of the owner, is subject to interest at the rate provided in <br />
         		<a id="pl.20.30"></a><var>20.30</var>section 
         <statute_ref>279.37, subdivision 2</statute_ref>, paragraph (b). This paragraph does not apply to a relative <br />
         		<a id="pl.20.31"></a><var>20.31</var>homestead under section 
         <statute_ref>273.124, subdivision 1</statute_ref>, paragraph (c).<br />
         		<a id="pl.20.32"></a><var>20.32</var>(c) By October 15 each year the commissioner shall set the interest rate under this <br />
         		<a id="pl.20.33"></a><var>20.33</var>subdivision at the greater of five percent or two percent above the prime rate charged <br />
         		<a id="pl.20.34"></a><var>20.34</var>by banks during the six-month period ending on September 30 of that year, rounded to <br />
         		<a id="pl.20.35"></a><var>20.35</var>the nearest full percent, provided that the rate must not exceed the maximum annum <br />
         		<a id="pl.21.1"></a><var>21.1</var>rate specified under section 279.03, subdivision 1a. By November 1 of each year the <br />
         		<a id="pl.21.2"></a><var>21.2</var>commissioner must certify the rate to the county auditor. The rate of interest becomes <br />
         		<a id="pl.21.3"></a><var>21.3</var>effective on January 1 of the immediately succeeding year. The commissioner's <br />
         		<a id="pl.21.4"></a><var>21.4</var>determination under this subdivision is not a rule subject to the Administrative Procedure <br />
         		<a id="pl.21.5"></a><var>21.5</var>Act in chapter 14, including section 14.386.<br />
         		<a id="pl.21.6"></a><var>21.6</var>(d) For the purposes of this subdivision, "prime rate charged by banks" means the <br />
         		<a id="pl.21.7"></a><var>21.7</var>average predominant prime rate quoted by commercial banks to large businesses, as <br />
         		<a id="pl.21.8"></a><var>21.8</var>determined by the Board of Governors of the Federal Reserve System.<br />
         		<a id="pl.21.9"></a><var>21.9</var><b>EFFECTIVE DATE.</b>This section is effective for composite judgments, repurchase <br />
         		<a id="pl.21.10"></a><var>21.10</var>contracts, and sales of forfeited property occurring after January 1, 2017.<br />
         		<br />
         		<a id="bill.1.22.0"></a><a id="pl.21.11"></a><var>21.11</var>&#160;&#160;&#160;&#160;Sec. 22. Minnesota Statutes 2014, section 279.37, subdivision 2, is amended to read:<br />
         		<a id="pl.21.12"></a><var>21.12</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Installment payments.</b> (a) The owner of any such parcel, or any person to <br />
         		<a id="pl.21.13"></a><var>21.13</var>whom the right to pay taxes has been given by statute, mortgage, or other agreement, may <br />
         		<a id="pl.21.14"></a><var>21.14</var>make and file with the county auditor of the county in which the parcel is located a written <br />
         		<a id="pl.21.15"></a><var>21.15</var>offer to pay the current taxes each year before they become delinquent, or to contest <br />
         		<a id="pl.21.16"></a><var>21.16</var>the taxes under chapter 278 and agree to confess judgment for the amount provided, as <br />
         		<a id="pl.21.17"></a><var>21.17</var>determined by the county auditor. By filing the offer, the owner waives all irregularities <br />
         		<a id="pl.21.18"></a><var>21.18</var>in connection with the tax proceedings affecting the parcel and any defense or objection <br />
         		<a id="pl.21.19"></a><var>21.19</var>which the owner may have to the proceedings, and also waives the requirements of any <br />
         		<a id="pl.21.20"></a><var>21.20</var>notice of default in the payment of any installment or interest to become due pursuant to <br />
         		<a id="pl.21.21"></a><var>21.21</var>the composite judgment to be so entered. Unless the property is subject to subdivision 1a, <br />
         		<a id="pl.21.22"></a><var>21.22</var>with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent taxes, <br />
         		<a id="pl.21.23"></a><var>21.23</var>costs, penalty, and interest, and (ii) tender all current year taxes and penalty due at the <br />
         		<a id="pl.21.24"></a><var>21.24</var>time the confession of judgment is entered. In the offer, the owner shall agree to pay the <br />
         		<a id="pl.21.25"></a><var>21.25</var>balance in nine equal installments, with interest as provided in section 
         <statute_ref>279.03</statute_ref>, payable <br />
         		<a id="pl.21.26"></a><var>21.26</var>annually on installments remaining unpaid from time to time, on or before December 31 <br />
         		<a id="pl.21.27"></a><var>21.27</var>of each year following the year in which judgment was confessed.<br />
         		<a id="pl.21.28"></a><var>21.28</var>(b) For property which qualifies under section 
         <statute_ref>279.03, subdivision 2</statute_ref>, paragraph (b), <br />
         		<a id="pl.21.29"></a><var>21.29</var>each year the commissioner shall set the interest rate for offers made under paragraph (a) <br />
         		<a id="pl.21.30"></a><var>21.30</var>at the greater of five percent or two percent above the prime rate charged by banks during <br />
         		<a id="pl.21.31"></a><var>21.31</var>the six-month period ending on September 30 of that year, rounded to the nearest full <br />
         		<a id="pl.21.32"></a><var>21.32</var>percent, provided that the rate must not exceed the maximum annum rate specified under <br />
         		<a id="pl.21.33"></a><var>21.33</var>section 
         <statute_ref>279.03, subdivision 1a</statute_ref>. The rate of interest becomes effective on January 1 of the <br />
         		<a id="pl.21.34"></a><var>21.34</var>immediately succeeding year. The commissioner's determination under this subdivision is <br />
         		<a id="pl.21.35"></a><var>21.35</var>not a rule subject to the Administrative Procedure Act in chapter 14, including section <br />
         		<a id="pl.22.1"></a><var>22.1</var><statute_ref>14.386</statute_ref>. If a default occurs in the payments under any confessed judgment entered under <br />
         		<a id="pl.22.2"></a><var>22.2</var>this paragraph, the taxes and penalties due are subject to the interest rate specified in section <br />
         		<a id="pl.22.3"></a><var>22.3</var><statute_ref>279.03</statute_ref>. Amounts entered in judgment bear interest at the rate provided in section 279.03, <br />
         		<a id="pl.22.4"></a><var>22.4</var>subdivision 1a, unless the parcel is classified as 1a or 1b, and is used as the homestead of <br />
         		<a id="pl.22.5"></a><var>22.5</var>the owner, in which case the rate provided in section 279.03, subdivision 2, shall apply. <br />
         		<a id="pl.22.6"></a><var>22.6</var>A parcel that is classified as relative homestead under section 273.124, subdivision 1, <br />
         		<a id="pl.22.7"></a><var>22.7</var>paragraph (c), is subject to interest at the rate provided in section 279.03, subdivision 1a.<br />
         		<a id="pl.22.8"></a><var>22.8</var>(c) Interest shall commence with the date the judgment is entered. During each <br />
         		<a id="pl.22.9"></a><var>22.9</var>calendar year, interest shall accrue on the unpaid balance of the composite judgment <br />
         		<a id="pl.22.10"></a><var>22.10</var>from the time it is confessed until it is paid. The interest rate established at the time the <br />
         		<a id="pl.22.11"></a><var>22.11</var>judgment is confessed is fixed for the duration of that judgment.<br />
         		<a id="pl.22.12"></a><var>22.12</var>(d) If a default occurs in the payments under any confessed judgment, the taxes and <br />
         		<a id="pl.22.13"></a><var>22.13</var>penalties due are subject to the interest rate specified in section 279.03, subdivision 1a, <br />
         		<a id="pl.22.14"></a><var>22.14</var>regardless of the classification of the parcel. For the purposes of this subdivision: <br />
         		<a id="pl.22.15"></a><var>22.15</var>(1) the term "prime rate charged by banks" means the average predominant prime <br />
         		<a id="pl.22.16"></a><var>22.16</var>rate quoted by commercial banks to large businesses, as determined by the Board of <br />
         		<a id="pl.22.17"></a><var>22.17</var>Governors of the Federal Reserve System; and <br />
         		<a id="pl.22.18"></a><var>22.18</var>(2) "default" means the cancellation of the confession of judgment due to <br />
         		<a id="pl.22.19"></a><var>22.19</var>nonpayment of the current year tax or failure to make any installment payment required by <br />
         		<a id="pl.22.20"></a><var>22.20</var>this confessed judgment within 60 days from the date on which payment was due.<br />
         		<a id="pl.22.21"></a><var>22.21</var>(c) The interest rate established at the time judgment is confessed is fixed for the <br />
         		<a id="pl.22.22"></a><var>22.22</var>duration of the judgment. By October 15 of each year, the commissioner of revenue must <br />
         		<a id="pl.22.23"></a><var>22.23</var>determine the rate of interest as provided under paragraph (b) and, by November 1 of each <br />
         		<a id="pl.22.24"></a><var>22.24</var>year, must certify the rate to the county auditor.<br />
         		<a id="pl.22.25"></a><var>22.25</var>(d) (e) A qualified property owner eligible to enter into a second confession of <br />
         		<a id="pl.22.26"></a><var>22.26</var>judgment may do so at the interest rate provided in paragraph (b).<br />
         		<a id="pl.22.27"></a><var>22.27</var>(e) Repurchase agreements or contracts for repurchase for properties being <br />
         		<a id="pl.22.28"></a><var>22.28</var>repurchased under section 
         <statute_ref>282.261</statute_ref> are not eligible to receive the interest rate under <br />
         		<a id="pl.22.29"></a><var>22.29</var>paragraph (b).<br />
         		<a id="pl.22.30"></a><var>22.30</var>(f) The offer must be substantially as follows:<br />
         		<a id="pl.22.31"></a><var>22.31</var>"To the court administrator of the district court of ........... county, I, ....................., <br />
         		<a id="pl.22.32"></a><var>22.32</var>am the owner of the following described parcel of real estate located in .................... <br />
         		<a id="pl.22.33"></a><var>22.33</var>county, Minnesota:<br />
         		<a id="pl.22.34"></a><var>22.34</var>.............................. Upon that real estate there are delinquent taxes for the year ........., and <br />
         		<a id="pl.22.35"></a><var>22.35</var>prior years, as follows: (here insert year of delinquency and the total amount of delinquent <br />
         		<a id="pl.22.36"></a><var>22.36</var>taxes, costs, interest, and penalty). By signing this document I offer to confess judgment <br />
         		<a id="pl.23.1"></a><var>23.1</var>in the sum of $...... and waive all irregularities in the tax proceedings affecting these <br />
         		<a id="pl.23.2"></a><var>23.2</var>taxes and any defense or objection which I may have to them, and direct judgment to be <br />
         		<a id="pl.23.3"></a><var>23.3</var>entered for the amount stated above, minus the sum of $............, to be paid with this <br />
         		<a id="pl.23.4"></a><var>23.4</var>document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and <br />
         		<a id="pl.23.5"></a><var>23.5</var>interest stated above. I agree to pay the balance of the judgment in nine or four equal, <br />
         		<a id="pl.23.6"></a><var>23.6</var>annual installments, with interest as provided in section 
         <statute_ref>279.03</statute_ref>, payable annually, on the <br />
         		<a id="pl.23.7"></a><var>23.7</var>installments remaining unpaid. I agree to pay the installments and interest on or before <br />
         		<a id="pl.23.8"></a><var>23.8</var>December 31 of each year following the year in which this judgment is confessed and <br />
         		<a id="pl.23.9"></a><var>23.9</var>current taxes each year before they become delinquent, or within 30 days after the entry of <br />
         		<a id="pl.23.10"></a><var>23.10</var>final judgment in proceedings to contest the taxes under chapter 278.<br />
         		<a id="pl.23.11"></a><var>23.11</var>Dated .............., ......."<br />
         		<a id="pl.23.12"></a><var>23.12</var><b>EFFECTIVE DATE.</b>This section is effective for sales and repurchases occurring <br />
         		<a id="pl.23.13"></a><var>23.13</var>after January 1, 2017.<br />
         		<br />
         		<a id="bill.1.23.0"></a><a id="pl.23.14"></a><var>23.14</var>&#160;&#160;&#160;&#160;Sec. 23. Minnesota Statutes 2014, section 282.01, subdivision 4, is amended to read:<br />
         		<a id="pl.23.15"></a><var>23.15</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Sale: method, requirements, effects.</b> The sale authorized under <br />
         		<a id="pl.23.16"></a><var>23.16</var>subdivision 3 must be conducted by the county auditor at the county seat of the county in <br />
         		<a id="pl.23.17"></a><var>23.17</var>which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may <br />
         		<a id="pl.23.18"></a><var>23.18</var>be conducted in any county facility within the county. The sale must not be for less than <br />
         		<a id="pl.23.19"></a><var>23.19</var>the appraised value except as provided in subdivision 7a. The parcels must be sold for <br />
         		<a id="pl.23.20"></a><var>23.20</var>cash only, unless the county board of the county has adopted a resolution providing for <br />
         		<a id="pl.23.21"></a><var>23.21</var>their sale on terms, in which event the resolution controls with respect to the sale. When <br />
         		<a id="pl.23.22"></a><var>23.22</var>the sale is made on terms other than for cash only (1) a payment of at least ten percent <br />
         		<a id="pl.23.23"></a><var>23.23</var>of the purchase price must be made at the time of purchase, and the balance must be <br />
         		<a id="pl.23.24"></a><var>23.24</var>paid in no more than ten equal annual installments, or (2) the payments must be made <br />
         		<a id="pl.23.25"></a><var>23.25</var>in accordance with county board policy, but in no event may the board require more <br />
         		<a id="pl.23.26"></a><var>23.26</var>than 12 installments annually, and the contract term must not be for more than ten years. <br />
         		<a id="pl.23.27"></a><var>23.27</var>Standing timber or timber products must not be removed from these lands until an amount <br />
         		<a id="pl.23.28"></a><var>23.28</var>equal to the appraised value of all standing timber or timber products on the lands at the <br />
         		<a id="pl.23.29"></a><var>23.29</var>time of purchase has been paid by the purchaser. If a parcel of land bearing standing <br />
         		<a id="pl.23.30"></a><var>23.30</var>timber or timber products is sold at public auction for more than the appraised value, the <br />
         		<a id="pl.23.31"></a><var>23.31</var>amount bid in excess of the appraised value must be allocated between the land and the <br />
         		<a id="pl.23.32"></a><var>23.32</var>timber in proportion to their respective appraised values. In that case, standing timber or <br />
         		<a id="pl.23.33"></a><var>23.33</var>timber products must not be removed from the land until the amount of the excess bid <br />
         		<a id="pl.23.34"></a><var>23.34</var>allocated to timber or timber products has been paid in addition to the appraised value of <br />
         		<a id="pl.24.1"></a><var>24.1</var>the land. The purchaser is entitled to immediate possession, subject to the provisions of <br />
         		<a id="pl.24.2"></a><var>24.2</var>any existing valid lease made in behalf of the state.<br />
         		<a id="pl.24.3"></a><var>24.3</var>For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price <br />
         		<a id="pl.24.4"></a><var>24.4</var>is subject to interest at the rate determined pursuant to section 
         <statute_ref>549.09</statute_ref>. The unpaid balance <br />
         		<a id="pl.24.5"></a><var>24.5</var>of the purchase price for sales occurring after December 31, 1990, is subject to interest <br />
         		<a id="pl.24.6"></a><var>24.6</var>at the rate determined provided in section 
         <statute_ref>279.03, subdivision 1a</statute_ref> 2, paragraph (c). The <br />
         		<a id="pl.24.7"></a><var>24.7</var>interest rate is subject to change each year on the unpaid balance in the manner provided <br />
         		<a id="pl.24.8"></a><var>24.8</var>for rate changes in section 
         <statute_ref>549.09</statute_ref> or 
         <statute_ref>279.03, subdivision 1a</statute_ref>, whichever, is applicable. <br />
         		<a id="pl.24.9"></a><var>24.9</var>Interest on the unpaid contract balance on sales occurring before July 1, 1982, is payable <br />
         		<a id="pl.24.10"></a><var>24.10</var>at the rate applicable to the sale at the time that the sale occurred.<br />
         		<a id="pl.24.11"></a><var>24.11</var><b>EFFECTIVE DATE.</b>This section is effective for sales occurring after January <br />
         		<a id="pl.24.12"></a><var>24.12</var>1, 2017.<br />
         		<br />
         		<a id="bill.1.24.0"></a><a id="pl.24.13"></a><var>24.13</var>&#160;&#160;&#160;&#160;Sec. 24. Minnesota Statutes 2014, section 282.261, subdivision 2, is amended to read:<br />
         		<a id="pl.24.14"></a><var>24.14</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Interest rate.</b> The unpaid balance on any repurchase contract approved <br />
         		<a id="pl.24.15"></a><var>24.15</var>by the county board for property classified as 1a or 1b and used as the homestead of the <br />
         		<a id="pl.24.16"></a><var>24.16</var>owner at the time of forfeiture or at the time that the repurchase application is approved is <br />
         		<a id="pl.24.17"></a><var>24.17</var>subject to interest at the rate determined in section 
         <statute_ref>279.03, subdivision 1a</statute_ref> 2. The interest <br />
         		<a id="pl.24.18"></a><var>24.18</var>rate is subject to change each year on the unpaid balance in the manner provided for rate <br />
         		<a id="pl.24.19"></a><var>24.19</var>changes in section 
         <statute_ref>279.03, subdivision 1a</statute_ref>. The unpaid balance on any other repurchase <br />
         		<a id="pl.24.20"></a><var>24.20</var>contract approved by the county board is subject to interest at the rate determined in <br />
         		<a id="pl.24.21"></a><var>24.21</var>section 279.03, subdivision 1a, which is subject to change each year in the manner <br />
         		<a id="pl.24.22"></a><var>24.22</var>provided for in section 279.03, subdivision 1a.<br />
         		<a id="pl.24.23"></a><var>24.23</var><b>EFFECTIVE DATE.</b>This section is effective for repurchases occurring after <br />
         		<a id="pl.24.24"></a><var>24.24</var>January 1, 2017.<br />
         		<br />
         		<a id="bill.1.25.0"></a><a id="pl.24.25"></a><var>24.25</var>&#160;&#160;&#160;&#160;Sec. 25. Minnesota Statutes 2014, section 473H.09, is amended to read:<br />
         		<a id="pl.24.26"></a><var>24.26</var><b>473H.09 EARLY TERMINATION.</b><br />
         		<a id="pl.24.27"></a><var>24.27</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Public emergency.</b> Termination of an agricultural preserve earlier <br />
         		<a id="pl.24.28"></a><var>24.28</var>than a date derived through application of section 
         <statute_ref>473H.08</statute_ref> may be permitted only in the <br />
         		<a id="pl.24.29"></a><var>24.29</var>event of a public emergency upon petition from the owner or authority to the governor. <br />
         		<a id="pl.24.30"></a><var>24.30</var>The determination of a public emergency shall be by the governor through executive order <br />
         		<a id="pl.24.31"></a><var>24.31</var>pursuant to sections 
         <statute_ref>4.035</statute_ref> and 
         <statute_ref>12.01</statute_ref> to 
         <statute_ref>12.46</statute_ref>. The executive order shall identify the <br />
         		<a id="pl.24.32"></a><var>24.32</var>preserve, the reasons requiring the action and the date of termination.<br />
         		<a id="pl.25.1"></a><var>25.1</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Death of owner.</b> (a) Within 180 days of the death of an owner, an owner's <br />
         		<a id="pl.25.2"></a><var>25.2</var>spouse, or other qualifying person, the surviving owner may elect to terminate the <br />
         		<a id="pl.25.3"></a><var>25.3</var>agricultural preserve and the covenant allowing the land to be enrolled as an agricultural <br />
         		<a id="pl.25.4"></a><var>25.4</var>preserve by notifying the authority on a form provided by the commissioner of agriculture. <br />
         		<a id="pl.25.5"></a><var>25.5</var>Termination of a covenant under this subdivision must be executed and acknowledged in <br />
         		<a id="pl.25.6"></a><var>25.6</var>the manner required by law to execute and acknowledge a deed.<br />
         		<a id="pl.25.7"></a><var>25.7</var>(b) For purposes of this subdivision, the following definitions apply:<br />
         		<a id="pl.25.8"></a><var>25.8</var>(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the <br />
         		<a id="pl.25.9"></a><var>25.9</var>decedent was the settlor or a beneficiary of, or member of an entity permitted to own <br />
         		<a id="pl.25.10"></a><var>25.10</var>agricultural land and engage in farming under section 500.24 that owned the agricultural <br />
         		<a id="pl.25.11"></a><var>25.11</var>preserve; and <br />
         		<a id="pl.25.12"></a><var>25.12</var>(2) "surviving owner" includes the executor of the estate of the decedent, the trustee <br />
         		<a id="pl.25.13"></a><var>25.13</var>for a trust that the decedent was the settlor or a beneficiary of, or an entity permitted to <br />
         		<a id="pl.25.14"></a><var>25.14</var>own farm land under section 500.24 of which the decedent was a partner, shareholder, or <br />
         		<a id="pl.25.15"></a><var>25.15</var>member.<br />
         		<a id="pl.25.16"></a><var>25.16</var>(c) When an agricultural preserve is terminated under this subdivision, the property <br />
         		<a id="pl.25.17"></a><var>25.17</var>is subject to additional taxes in an amount equal to 50 percent of the taxes actually <br />
         		<a id="pl.25.18"></a><var>25.18</var>levied against the property for the current taxes payable year. The additional taxes are <br />
         		<a id="pl.25.19"></a><var>25.19</var>extended against the property on the tax list for taxes payable in the current year. The <br />
         		<a id="pl.25.20"></a><var>25.20</var>additional taxes must be distributed among the jurisdictions levying taxes on the property <br />
         		<a id="pl.25.21"></a><var>25.21</var>in proportion to the current year's taxes.<br />
         		<a id="pl.25.22"></a><var>25.22</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2016.<br />
         		<br />
         		<a id="bill.1.26.0"></a><a id="pl.25.23"></a><var>25.23</var>&#160;&#160;&#160;&#160;Sec. 26. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, <br />
         		<a id="pl.25.24"></a><var>25.24</var>article 6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154, <br />
         		<a id="pl.25.25"></a><var>25.25</var>article 2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read:<br />
         		<a id="pl.25.26"></a><var>25.26</var>&#160;&#160;&#160;&#160;Sec. 3. <b>TAX; PAYMENT OF EXPENSES.</b><br />
         		<a id="pl.25.27"></a><var>25.27</var>&#160;&#160;&#160;&#160;(a) The tax levied by the hospital district under Minnesota Statutes, section 
         <statute_ref>447.34</statute_ref>, <br />
         		<a id="pl.25.28"></a><var>25.28</var>must not be levied at a rate that exceeds the amount authorized to be levied under that <br />
         		<a id="pl.25.29"></a><var>25.29</var>section. The proceeds of the tax may be used for all purposes of the hospital district, <br />
         		<a id="pl.25.30"></a><var>25.30</var>except as provided in paragraph (b).<br />
         		<a id="pl.25.31"></a><var>25.31</var>&#160;&#160;&#160;&#160;(b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by <br />
         		<a id="pl.25.32"></a><var>25.32</var>the Cook ambulance service and the Orr ambulance service for the purpose of:<br />
         		<a id="pl.25.33"></a><var>25.33</var>&#160;&#160;&#160;&#160;(1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance <br />
         		<a id="pl.25.34"></a><var>25.34</var>service;<br />
         		<a id="pl.25.35"></a><var>25.35</var>&#160;&#160;&#160;&#160;(2) attached and portable equipment for use in and for the ambulances; and<br />
         		<a id="pl.26.1"></a><var>26.1</var>&#160;&#160;&#160;&#160;(3) parts and replacement parts for maintenance and repair of the ambulances, and <br />
         		<a id="pl.26.2"></a><var>26.2</var>administrative, operation, or salary expenses for the Cook ambulance service and the <br />
         		<a id="pl.26.3"></a><var>26.3</var>Orr ambulance service.<br />
         		<a id="pl.26.4"></a><var>26.4</var>The money may not be used for administrative, operation, or salary expenses.<br />
         		<a id="pl.26.5"></a><var>26.5</var>&#160;&#160;&#160;&#160;(c) The part of the levy referred to in paragraph (b) must be administered by the <br />
         		<a id="pl.26.6"></a><var>26.6</var>Cook Hospital and passed on in equal amounts directly to the Cook area ambulance <br />
         		<a id="pl.26.7"></a><var>26.7</var>service board and the city of Orr to be used for the purposes in paragraph (b).<br />
         		<a id="pl.26.8"></a><var>26.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.27.0"></a><a id="pl.26.9"></a><var>26.9</var>&#160;&#160;&#160;&#160;Sec. 27. Laws 1996, chapter 471, article 3, section 51, is amended to read:<br />
         		<a id="pl.26.10"></a><var>26.10</var>&#160;&#160;&#160;&#160;Sec. 51. <b>RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.</b><br />
         		<a id="pl.26.11"></a><var>26.11</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Levy authorized.</b> Notwithstanding other law to the contrary, the <br />
         		<a id="pl.26.12"></a><var>26.12</var>Carlton county board of commissioners may levy in and for the unorganized township of <br />
         		<a id="pl.26.13"></a><var>26.13</var>Sawyer an amount up to $1,500 $2,000 annually for recreational purposes, beginning with <br />
         		<a id="pl.26.14"></a><var>26.14</var>taxes payable in 1997 and ending with taxes payable in 2006.<br />
         		<a id="pl.26.15"></a><var>26.15</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Effective date.</b> This section is effective June 1, 1996, without local <br />
         		<a id="pl.26.16"></a><var>26.16</var>approval.<br />
         		<a id="pl.26.17"></a><var>26.17</var><b>EFFECTIVE DATE.</b>This section is effective the day after the Carlton County <br />
         		<a id="pl.26.18"></a><var>26.18</var>Board of Commissioners and its chief clerical officer comply with section 645.021, <br />
         		<a id="pl.26.19"></a><var>26.19</var>subdivisions 2 and 3, and applies to taxes payable in 2017.<br />
         		<br />
         		<a id="bill.1.28.0"></a><a id="pl.26.20"></a><var>26.20</var>&#160;&#160;&#160;&#160;Sec. 28. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by <br />
         		<a id="pl.26.21"></a><var>26.21</var>Laws 2013, chapter 143, article 4, section 36, is amended to read:<br />
         		<a id="pl.26.22"></a><var>26.22</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Agreement.</b> The city of Cloquet and Perch Lake Township, by <br />
         		<a id="pl.26.23"></a><var>26.23</var>resolution of each of their governing bodies, may establish the Cloquet Area Fire and <br />
         		<a id="pl.26.24"></a><var>26.24</var>Ambulance Special Taxing District for the purpose of providing fire or ambulance <br />
         		<a id="pl.26.25"></a><var>26.25</var>services, or both, throughout the district. In this section, "municipality" means home rule <br />
         		<a id="pl.26.26"></a><var>26.26</var>charter and statutory cities, towns, and Indian tribes. The district may exercise all the <br />
         		<a id="pl.26.27"></a><var>26.27</var>powers relating to fire and ambulance services of the municipalities that receive fire or <br />
         		<a id="pl.26.28"></a><var>26.28</var>ambulance services, or both, from the district. Upon application, any other municipality <br />
         		<a id="pl.26.29"></a><var>26.29</var>may join the district with the agreement of the municipalities that comprise the district at <br />
         		<a id="pl.26.30"></a><var>26.30</var>the time of its application to join.<br />
         		<a id="pl.26.31"></a><var>26.31</var><b>EFFECTIVE DATE.</b>This section is effective in Cloquet and Perch Lake Township <br />
         		<a id="pl.26.32"></a><var>26.32</var>the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the <br />
         		<a id="pl.26.33"></a><var>26.33</var>governing body of each.<br />
         		<br />
         		<a id="bill.1.29.0"></a><a id="pl.27.1"></a><var>27.1</var>&#160;&#160;&#160;&#160;Sec. 29. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:<br />
         		<a id="pl.27.2"></a><var>27.2</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Board.</b> The Cloquet Area Fire and Ambulance Special Taxing District <br />
         		<a id="pl.27.3"></a><var>27.3</var>Board is governed by a board made up initially of one or more elected officials of the <br />
         		<a id="pl.27.4"></a><var>27.4</var>governing body of each participating municipality in the proportions set out in the <br />
         		<a id="pl.27.5"></a><var>27.5</var>establishing resolution, subject to change as provided in the district's charter, if any, or <br />
         		<a id="pl.27.6"></a><var>27.6</var>in the district's bylaws. Each municipality's representatives serve at the pleasure of that <br />
         		<a id="pl.27.7"></a><var>27.7</var>municipality's governing body.<br />
         		<a id="pl.27.8"></a><var>27.8</var><b>EFFECTIVE DATE.</b>This section is effective in Cloquet and Perch Lake Township <br />
         		<a id="pl.27.9"></a><var>27.9</var>the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the <br />
         		<a id="pl.27.10"></a><var>27.10</var>governing body of each.<br />
         		<br />
         		<a id="bill.1.30.0"></a><a id="pl.27.11"></a><var>27.11</var>&#160;&#160;&#160;&#160;Sec. 30. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by <br />
         		<a id="pl.27.12"></a><var>27.12</var>Laws 2013, chapter 143, article 4, section 37, is amended to read:<br />
         		<a id="pl.27.13"></a><var>27.13</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Tax.</b> (a) The district board may impose a property tax on taxable property <br />
         		<a id="pl.27.14"></a><var>27.14</var>as provided in this subdivision to pay the costs of providing fire or ambulance services, <br />
         		<a id="pl.27.15"></a><var>27.15</var>or both, throughout the district. The board shall annually determine the total amount of <br />
         		<a id="pl.27.16"></a><var>27.16</var>the levy that is attributable to the cost of providing fire services and the cost of providing <br />
         		<a id="pl.27.17"></a><var>27.17</var>ambulance services within the primary service area. For those municipalities that only <br />
         		<a id="pl.27.18"></a><var>27.18</var>receive ambulance services, the costs for the provision of ambulance services shall <br />
         		<a id="pl.27.19"></a><var>27.19</var>be levied against taxable property within those municipalities at a rate necessary not to <br />
         		<a id="pl.27.20"></a><var>27.20</var>exceed 0.019 percent of the estimated market value. For those municipalities that receive <br />
         		<a id="pl.27.21"></a><var>27.21</var>both fire and ambulance services, the tax shall be imposed at a rate that does not exceed <br />
         		<a id="pl.27.22"></a><var>27.22</var>0.2835 percent of estimated market value.<br />
         		<a id="pl.27.23"></a><var>27.23</var>(b) When a member municipality opts to receive fire service from the district or <br />
         		<a id="pl.27.24"></a><var>27.24</var>an additional municipality becomes a member of the district, the cost of providing fire <br />
         		<a id="pl.27.25"></a><var>27.25</var>services to that community shall be determined by the board and added to the maximum <br />
         		<a id="pl.27.26"></a><var>27.26</var>levy amount.<br />
         		<a id="pl.27.27"></a><var>27.27</var>(c) Each county auditor of a county that contains a municipality subject to the tax <br />
         		<a id="pl.27.28"></a><var>27.28</var>under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing <br />
         		<a id="pl.27.29"></a><var>27.29</var>District. The district may also impose other fees or charges as allowed by law for the <br />
         		<a id="pl.27.30"></a><var>27.30</var>provision of fire and ambulance services.<br />
         		<a id="pl.27.31"></a><var>27.31</var><b>EFFECTIVE DATE.</b>This section is effective in Cloquet and Perch Lake Township <br />
         		<a id="pl.27.32"></a><var>27.32</var>the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the <br />
         		<a id="pl.27.33"></a><var>27.33</var>governing body of each.<br />
         		<br />
         		<a id="bill.1.31.0"></a><a id="pl.28.1"></a><var>28.1</var>&#160;&#160;&#160;&#160;Sec. 31. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:<br />
         		<a id="pl.28.2"></a><var>28.2</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Public indebtedness.</b> (a) The district may incur debt in the manner <br />
         		<a id="pl.28.3"></a><var>28.3</var>provided for a municipality by Minnesota Statutes, chapter 475, and may issue certificates <br />
         		<a id="pl.28.4"></a><var>28.4</var>of indebtedness or capital notes in the manner provided for a city by Minnesota Statutes, <br />
         		<a id="pl.28.5"></a><var>28.5</var>section 412.301, when necessary to accomplish its duties, except that the district may <br />
         		<a id="pl.28.6"></a><var>28.6</var>not incur debt or issue obligations until first obtaining the approval of a majority of the <br />
         		<a id="pl.28.7"></a><var>28.7</var>electors voting on the question of issuing the obligation. The debt service for debt used to <br />
         		<a id="pl.28.8"></a><var>28.8</var>finance capital costs for ambulance service shall be levied against taxable property within <br />
         		<a id="pl.28.9"></a><var>28.9</var>the municipalities in the primary service area. The debt service for debt used to finance <br />
         		<a id="pl.28.10"></a><var>28.10</var>capital costs for fire service shall be levied against taxable property within municipalities <br />
         		<a id="pl.28.11"></a><var>28.11</var>receiving fire services. The district board shall pledge its full faith and credit and taxing <br />
         		<a id="pl.28.12"></a><var>28.12</var>power without limitation as to rate or amount for the payment of the district's debt.<br />
         		<a id="pl.28.13"></a><var>28.13</var>(b) For purposes of this subdivision, "municipality" has the definition given in <br />
         		<a id="pl.28.14"></a><var>28.14</var>Minnesota Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph <br />
         		<a id="pl.28.15"></a><var>28.15</var>(c).<br />
         		<a id="pl.28.16"></a><var>28.16</var><b>EFFECTIVE DATE.</b>This section is effective in Cloquet and Perch Lake Township <br />
         		<a id="pl.28.17"></a><var>28.17</var>the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the <br />
         		<a id="pl.28.18"></a><var>28.18</var>governing body of each.<br />
         		<br />
         		<a id="bill.1.32.0"></a><a id="pl.28.19"></a><var>28.19</var>&#160;&#160;&#160;&#160;Sec. 32. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:<br />
         		<a id="pl.28.20"></a><var>28.20</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Withdrawal.</b> Notice of intent to withdraw from participation in the district <br />
         		<a id="pl.28.21"></a><var>28.21</var>may be given only in the month of January, with a minimum of twelve months notice of <br />
         		<a id="pl.28.22"></a><var>28.22</var>intent to withdraw. Withdrawal becomes effective for taxes levied pursuant to subdivision <br />
         		<a id="pl.28.23"></a><var>28.23</var>3 in the year when the notice is given. A property tax on taxable property located in a <br />
         		<a id="pl.28.24"></a><var>28.24</var>withdrawing municipality that has been levied by the district pursuant to subdivision 4 <br />
         		<a id="pl.28.25"></a><var>28.25</var>remains in effect until the obligations outstanding on the date of withdrawal are satisfied, <br />
         		<a id="pl.28.26"></a><var>28.26</var>including any property tax levied in connection with refunding such obligations. The <br />
         		<a id="pl.28.27"></a><var>28.27</var>district and its members may also develop and agree upon other continuing obligations <br />
         		<a id="pl.28.28"></a><var>28.28</var>after withdrawal of a municipality.<br />
         		<a id="pl.28.29"></a><var>28.29</var><b>EFFECTIVE DATE.</b>This section is effective in Cloquet and Perch Lake Township <br />
         		<a id="pl.28.30"></a><var>28.30</var>the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the <br />
         		<a id="pl.28.31"></a><var>28.31</var>governing body of each.<br />
         		<br />
         		<a id="bill.1.33.0"></a><a id="pl.28.32"></a><var>28.32</var>&#160;&#160;&#160;&#160;Sec. 33. <b>2016 TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE </b><br />
         		<a id="pl.28.33"></a><var>28.33</var><b>WAIVER.</b><br />
         		<a id="pl.29.1"></a><var>29.1</var>If a city or town that conducts local board of appeal and equalization meetings <br />
         		<a id="pl.29.2"></a><var>29.2</var>certified by February 1, 2016, that it was in compliance with the requirements of <br />
         		<a id="pl.29.3"></a><var>29.3</var>Minnesota Statutes, section 274.014, subdivision 2, but no member of the local board <br />
         		<a id="pl.29.4"></a><var>29.4</var>who has attended an appeal and equalization course training within the preceding four <br />
         		<a id="pl.29.5"></a><var>29.5</var>years attended the local board's meeting for 2016, that local board shall have its powers <br />
         		<a id="pl.29.6"></a><var>29.6</var>reinstated for the 2017 assessment by resolution of the governing body of the city or <br />
         		<a id="pl.29.7"></a><var>29.7</var>town, and by certifying it is in compliance with the requirements of Minnesota Statutes, <br />
         		<a id="pl.29.8"></a><var>29.8</var>section 274.014, subdivision 2. The resolution and certification must be provided to <br />
         		<a id="pl.29.9"></a><var>29.9</var>the county assessor by February 1, 2017.<br />
         		<a id="pl.29.10"></a><var>29.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.34.0"></a><a id="pl.29.11"></a><var>29.11</var>&#160;&#160;&#160;&#160;Sec. 34. <b>TOWN OF TOFTE; MUNICIPAL HOUSING.</b><br />
         		<a id="pl.29.12"></a><var>29.12</var>(a) Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988, <br />
         		<a id="pl.29.13"></a><var>29.13</var>chapter 719, article 19, section 27, the town of Tofte may own and operate within its <br />
         		<a id="pl.29.14"></a><var>29.14</var>boundary up to 12 units of housing for individuals over 55 years of age or families with <br />
         		<a id="pl.29.15"></a><var>29.15</var>one member of the household that is over 55 years of age, or projects that provide housing <br />
         		<a id="pl.29.16"></a><var>29.16</var>for individuals or families with incomes not greater than 120 percent of the median <br />
         		<a id="pl.29.17"></a><var>29.17</var>family income, as estimated by the United States Department of Housing and Urban <br />
         		<a id="pl.29.18"></a><var>29.18</var>Development for the nonmetropolitan county in which the town of Tofte is located.<br />
         		<a id="pl.29.19"></a><var>29.19</var>(b) The town of Tofte shall have the powers of a city under Minnesota Statutes, <br />
         		<a id="pl.29.20"></a><var>29.20</var>chapter 462C, and the powers of an authority under Minnesota Statutes, sections 469.001 <br />
         		<a id="pl.29.21"></a><var>29.21</var>to 469.047, with respect to this section. Upon the approval of the town board, the town of <br />
         		<a id="pl.29.22"></a><var>29.22</var>Tofte may levy the tax described in Minnesota Statutes, section 469.033, subdivision 6.<br />
         		<a id="pl.29.23"></a><var>29.23</var>(c) Nothing in this section shall limit the power of the Cook County/Grand Marais <br />
         		<a id="pl.29.24"></a><var>29.24</var>Joint Economic Development Authority to exercise jurisdiction within the town of Tofte. <br />
         		<a id="pl.29.25"></a><var>29.25</var>The authority to undertake new projects under this section shall expire on June 30, 2017.<br />
         		<a id="pl.29.26"></a><var>29.26</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by <br />
         		<a id="pl.29.27"></a><var>29.27</var>the governing body of the town of Tofte with Minnesota Statutes, section 645.021, <br />
         		<a id="pl.29.28"></a><var>29.28</var>subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.1.35.0"></a><a id="pl.29.29"></a><var>29.29</var>&#160;&#160;&#160;&#160;Sec. 35. <b>SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL </b><br />
         		<a id="pl.29.30"></a><var>29.30</var><b>ASSESSMENT.</b><br />
         		<a id="pl.29.31"></a><var>29.31</var>Any real or personal property acquired, owned, leased, controlled, used, or occupied <br />
         		<a id="pl.29.32"></a><var>29.32</var>by the city of St. Paul for the primary purpose of providing a stadium for a Major League <br />
         		<a id="pl.29.33"></a><var>29.33</var>Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for <br />
         		<a id="pl.30.1"></a><var>30.1</var>public, governmental, and municipal purposes, and is exempt from ad valorem taxation by <br />
         		<a id="pl.30.2"></a><var>30.2</var>the state or any political subdivision of the state, provided that the properties are subject to <br />
         		<a id="pl.30.3"></a><var>30.3</var>special assessments levied by a political subdivision for a local improvement in amounts <br />
         		<a id="pl.30.4"></a><var>30.4</var>proportionate to and not exceeding the special benefit received by the properties from the <br />
         		<a id="pl.30.5"></a><var>30.5</var>improvement. In determining the special benefit received by the properties, no possible <br />
         		<a id="pl.30.6"></a><var>30.6</var>use of any of the properties in any manner different from their intended use for providing a <br />
         		<a id="pl.30.7"></a><var>30.7</var>Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota <br />
         		<a id="pl.30.8"></a><var>30.8</var>Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a <br />
         		<a id="pl.30.9"></a><var>30.9</var>lease or use agreement between the city and another person for uses related to the purposes <br />
         		<a id="pl.30.10"></a><var>30.10</var>of the operation of the stadium and related parking facilities is exempt from taxation <br />
         		<a id="pl.30.11"></a><var>30.11</var>regardless of the length of the lease or use agreement. This section, insofar as it provides <br />
         		<a id="pl.30.12"></a><var>30.12</var>an exemption or special treatment, does not apply to any real property that is leased for <br />
         		<a id="pl.30.13"></a><var>30.13</var>residential, business, or commercial development or other purposes different from those <br />
         		<a id="pl.30.14"></a><var>30.14</var>necessary to the provision and operation of the stadium.<br />
         		<a id="pl.30.15"></a><var>30.15</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the St. Paul City <br />
         		<a id="pl.30.16"></a><var>30.16</var>Council and compliance with Minnesota Statutes, section 645.021.<br />
         		<br />
         		<a id="bill.1.36.0"></a><a id="pl.30.17"></a><var>30.17</var>&#160;&#160;&#160;&#160;Sec. 36. <b>OPTIONAL CANCELLATION OF TAX FORFEITURE FOR CERTAIN </b><br />
         		<a id="pl.30.18"></a><var>30.18</var><b>BUILDINGS; ST. LOUIS COUNTY.</b><br />
         		<a id="pl.30.19"></a><var>30.19</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br />
         		<a id="pl.30.20"></a><var>30.20</var>have the meanings given.<br />
         		<a id="pl.30.21"></a><var>30.21</var>(b) "Building PIN" means a parcel identification number that is assigned to a <br />
         		<a id="pl.30.22"></a><var>30.22</var>building and does not include the land upon which the building is located; and<br />
         		<a id="pl.30.23"></a><var>30.23</var>(c) "Land PIN" means a parcel identification number that is assigned to land upon <br />
         		<a id="pl.30.24"></a><var>30.24</var>which a building associated with a building PIN is located.<br />
         		<a id="pl.30.25"></a><var>30.25</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Optional cancellation of tax forfeiture for buildings with building PINs.</b><br />
         		 <a id="pl.30.26"></a><var>30.26</var>Notwithstanding any law to the contrary, if any building associated with a building PIN <br />
         		<a id="pl.30.27"></a><var>30.27</var>and located in St. Louis County forfeits or has forfeited to the state of Minnesota before, <br />
         		<a id="pl.30.28"></a><var>30.28</var>on, or after the date of enactment of this section because of nonpayment of delinquent <br />
         		<a id="pl.30.29"></a><var>30.29</var>property taxes, special assessments, penalties, interest, or costs, the county auditor of St. <br />
         		<a id="pl.30.30"></a><var>30.30</var>Louis County may, with approval from the county board and the commissioner of revenue:<br />
         		<a id="pl.30.31"></a><var>30.31</var>(1) cancel the certificate of forfeiture and set aside the forfeiture without reinstating <br />
         		<a id="pl.30.32"></a><var>30.32</var>the unpaid property taxes, special assessments, penalties, interest, or costs; and<br />
         		<a id="pl.31.1"></a><var>31.1</var>(2) combine the building PIN with its associated land PIN. When this occurs, the <br />
         		<a id="pl.31.2"></a><var>31.2</var>land PIN is the only surviving parcel identification number, and includes both the building <br />
         		<a id="pl.31.3"></a><var>31.3</var>and the land upon which the building is located.<br />
         		<a id="pl.31.4"></a><var>31.4</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Cancellation of tax forfeiture; taxation through date of cancellation.</b><br />
         		 <a id="pl.31.5"></a><var>31.5</var>Notwithstanding any law to the contrary, if the county auditor of St. Louis County cancels <br />
         		<a id="pl.31.6"></a><var>31.6</var>a certificate of forfeiture and sets aside a forfeiture in accordance with subdivision 2, <br />
         		<a id="pl.31.7"></a><var>31.7</var>the affected building is not subject to taxation from the date of forfeiture through the <br />
         		<a id="pl.31.8"></a><var>31.8</var>date of cancellation.<br />
         		<a id="pl.31.9"></a><var>31.9</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Appropriation.</b> $1,000,000 in fiscal year 2017 only is appropriated from <br />
         		<a id="pl.31.10"></a><var>31.10</var>the general fund to the commissioner of revenue for a grant to St. Louis County that shall <br />
         		<a id="pl.31.11"></a><var>31.11</var>be paid on July 1, 2016. The county may only use the grant to remove any building, <br />
         		<a id="pl.31.12"></a><var>31.12</var>upon the request of the landowner, after the county has complied with the provisions of <br />
         		<a id="pl.31.13"></a><var>31.13</var>subdivision 2.<br />
         		<a id="pl.31.14"></a><var>31.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.37.0"></a><a id="pl.31.15"></a><var>31.15</var>&#160;&#160;&#160;&#160;Sec. 37. <b>LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.</b><br />
         		<a id="pl.31.16"></a><var>31.16</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Abatements authorized.</b> (a) Notwithstanding Minnesota Statutes, <br />
         		<a id="pl.31.17"></a><var>31.17</var>section 375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may <br />
         		<a id="pl.31.18"></a><var>31.18</var>grant an abatement of local property taxes for taxes payable in 2016 provided that:<br />
         		<a id="pl.31.19"></a><var>31.19</var>(1) the property is classified as 1c, 3a (excluding utility real and personal property), <br />
         		<a id="pl.31.20"></a><var>31.20</var>4c(1), 4c(10), or 4c(11);<br />
         		<a id="pl.31.21"></a><var>31.21</var>(2) on or before February 1, 2017, the taxpayer submits a written application to the <br />
         		<a id="pl.31.22"></a><var>31.22</var>county assessor in the county in which abatement is sought; and<br />
         		<a id="pl.31.23"></a><var>31.23</var>(3) the taxpayer meets qualification requirements established in subdivision 3.<br />
         		<a id="pl.31.24"></a><var>31.24</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Appeals.</b> An appeal may not be taken to the Tax Court from any order <br />
         		<a id="pl.31.25"></a><var>31.25</var>of the county board made pursuant to the exercise of the discretionary authority granted <br />
         		<a id="pl.31.26"></a><var>31.26</var>in this section.<br />
         		<a id="pl.31.27"></a><var>31.27</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Qualification requirements.</b> To qualify for abatements under this section, <br />
         		<a id="pl.31.28"></a><var>31.28</var>a taxpayer must:<br />
         		<a id="pl.31.29"></a><var>31.29</var>(1) be located within one of the following municipalities surrounding Lake Mille <br />
         		<a id="pl.31.30"></a><var>31.30</var>Lacs:<br />
         		<a id="pl.31.31"></a><var>31.31</var>(i) in Crow Wing County, the city of Garrison, township of Garrison, or township <br />
         		<a id="pl.31.32"></a><var>31.32</var>of Roosevelt;<br />
         		<a id="pl.32.1"></a><var>32.1</var>(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township <br />
         		<a id="pl.32.2"></a><var>32.2</var>of Malmo, or township of Lakeside; or<br />
         		<a id="pl.32.3"></a><var>32.3</var>(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township <br />
         		<a id="pl.32.4"></a><var>32.4</var>of East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;<br />
         		<a id="pl.32.5"></a><var>32.5</var>(2) document a reduction in gross receipts of five percent or greater between two <br />
         		<a id="pl.32.6"></a><var>32.6</var>successive calendar years beginning in 2010 or later; and<br />
         		<a id="pl.32.7"></a><var>32.7</var>(3) be a business in one of the following industries, as defined within the North <br />
         		<a id="pl.32.8"></a><var>32.8</var>American Industry Classification System: accommodation, restaurants, bars, amusement <br />
         		<a id="pl.32.9"></a><var>32.9</var>and recreation, food and beverages retail, sporting goods, miscellaneous retail, general <br />
         		<a id="pl.32.10"></a><var>32.10</var>retail, museums, historical sites, health and personal care, gas station, general merchandise, <br />
         		<a id="pl.32.11"></a><var>32.11</var>business and professional membership, movies, or nonstore retailer, as determined by the <br />
         		<a id="pl.32.12"></a><var>32.12</var>county in consultation with the commissioner of employment and economic development.<br />
         		<a id="pl.32.13"></a><var>32.13</var>&#160;&#160;&#160;&#160;Subd. 4. <b>State general levy in relief area.</b> The counties of Aitkin, Crow Wing, and <br />
         		<a id="pl.32.14"></a><var>32.14</var>Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a <br />
         		<a id="pl.32.15"></a><var>32.15</var>(excluding utility real and personal property), or 4c(1) that is located in the area described <br />
         		<a id="pl.32.16"></a><var>32.16</var>by subdivision 3, clause (1), for taxes payable in 2016. No refund may be issued to a <br />
         		<a id="pl.32.17"></a><var>32.17</var>taxpayer whose property taxes are delinquent.<br />
         		<a id="pl.32.18"></a><var>32.18</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Certification and transfer of funds.</b> (a) By April 1, 2017, a county <br />
         		<a id="pl.32.19"></a><var>32.19</var>granting a refund as required under subdivision 4 must certify the total amount of state <br />
         		<a id="pl.32.20"></a><var>32.20</var>general tax refunded to Mille Lacs County and the commissioner of revenue. By May 1, <br />
         		<a id="pl.32.21"></a><var>32.21</var>2017, Mille Lacs County must transfer an amount equal to the amount certified under this <br />
         		<a id="pl.32.22"></a><var>32.22</var>paragraph to the county making the certification.<br />
         		<a id="pl.32.23"></a><var>32.23</var>(b) By April 1, 2017, a county that has received an application for an abatement <br />
         		<a id="pl.32.24"></a><var>32.24</var>authorized under subdivision 1 must certify to Mille Lacs County the total amount of <br />
         		<a id="pl.32.25"></a><var>32.25</var>abatements for which applications have been received and approved. By May 1, 2017, <br />
         		<a id="pl.32.26"></a><var>32.26</var>Mille Lacs County must transfer an amount equal to the amount certified under this <br />
         		<a id="pl.32.27"></a><var>32.27</var>paragraph to the county making the certification. If the amount appropriated under <br />
         		<a id="pl.32.28"></a><var>32.28</var>subdivision 6, minus the amount transferred under paragraph (a), is not sufficient to make <br />
         		<a id="pl.32.29"></a><var>32.29</var>the transfer required under this paragraph, Mille Lacs County must reduce the amount <br />
         		<a id="pl.32.30"></a><var>32.30</var>transferred to each county by a uniform percentage. By June 30, 2017, the county must <br />
         		<a id="pl.32.31"></a><var>32.31</var>issue refunds of local property tax amounts to qualified properties, in proportion to the <br />
         		<a id="pl.32.32"></a><var>32.32</var>amount received from Mille Lacs County. No refund may be issued to a taxpayer whose <br />
         		<a id="pl.32.33"></a><var>32.33</var>property taxes are delinquent.<br />
         		<a id="pl.32.34"></a><var>32.34</var>(c) By August 1, 2017, Mille Lacs County must calculate the amount transferred <br />
         		<a id="pl.32.35"></a><var>32.35</var>under paragraphs (a) and (b), and subtract that amount from $1,400,000 to obtain the <br />
         		<a id="pl.33.1"></a><var>33.1</var>ongoing economic relief distribution amount, if any. This amount must be transferred to <br />
         		<a id="pl.33.2"></a><var>33.2</var>the counties of Aitkin, Crow Wing, and Mille Lacs in proportion to the amounts certified <br />
         		<a id="pl.33.3"></a><var>33.3</var>by each county under paragraphs (a) and (b). A county receiving a transfer under this <br />
         		<a id="pl.33.4"></a><var>33.4</var>paragraph must use the funds received to provide abatements to business properties under <br />
         		<a id="pl.33.5"></a><var>33.5</var>economic hardship for taxes payable in 2017, and each year thereafter until a county's <br />
         		<a id="pl.33.6"></a><var>33.6</var>share of the ongoing economic relief distribution amount is exhausted.<br />
         		<a id="pl.33.7"></a><var>33.7</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Commissioner of revenue; appropriation.</b> $1,400,000 in fiscal year 2017 <br />
         		<a id="pl.33.8"></a><var>33.8</var>is appropriated from the general fund to the commissioner of revenue for transfer to <br />
         		<a id="pl.33.9"></a><var>33.9</var>Mille Lacs County to make the transfers required under subdivision 5. This is a onetime <br />
         		<a id="pl.33.10"></a><var>33.10</var>appropriation.<br />
         		<a id="pl.33.11"></a><var>33.11</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Report to legislature.</b> The commissioner of revenue must make a <br />
         		<a id="pl.33.12"></a><var>33.12</var>written report to the chairs and ranking minority members of the legislative committees <br />
         		<a id="pl.33.13"></a><var>33.13</var>with jurisdiction over taxes stating the amount of abatements and refunds given under <br />
         		<a id="pl.33.14"></a><var>33.14</var>this section by taxing jurisdictions by February 1, 2018. The counties must provide the <br />
         		<a id="pl.33.15"></a><var>33.15</var>commissioner with the information necessary to make the report.<br />
         		<a id="pl.33.16"></a><var>33.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.38.0"></a><a id="pl.33.17"></a><var>33.17</var>&#160;&#160;&#160;&#160;Sec. 38. <b> REPEALER.</b><br />
         		<a id="pl.33.18"></a><var>33.18</var>Minnesota Statutes 2014, section 272.02, subdivision 23, is repealed.<br />
         		<a id="pl.33.19"></a><var>33.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2017 and <br />
         		<a id="pl.33.20"></a><var>33.20</var>thereafter.<br />
         		<br />
         		<a id="bill.2.0.0"></a><div class="xtend_ce"><a id="pl.33.21"></a><var>33.21</var><b>ARTICLE 2</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.33.22"></a><var>33.22</var><b>AIDS AND CREDITS</b><br />
            		
         </div><br />
         		<a id="bill.2.1.0"></a><a id="pl.33.23"></a><var>33.23</var>&#160;&#160;&#160;&#160;Section 1. <b>[273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.</b><br />
         		<a id="pl.33.24"></a><var>33.24</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Eligibility.</b> All class 2a, 2b, and 2c property under section 273.13, <br />
         		<a id="pl.33.25"></a><var>33.25</var>subdivision 23, other than property consisting of the house, garage, and immediately <br />
         		<a id="pl.33.26"></a><var>33.26</var>surrounding one acre of land of an agricultural homestead, is eligible to receive the credit <br />
         		<a id="pl.33.27"></a><var>33.27</var>under this section.<br />
         		<a id="pl.33.28"></a><var>33.28</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Credit amount.</b> For each qualifying property, the school building bond <br />
         		<a id="pl.33.29"></a><var>33.29</var>agricultural credit is equal to 40 percent of the property's eligible net tax capacity <br />
         		<a id="pl.33.30"></a><var>33.30</var>multiplied by the school debt tax rate determined under section 275.08, subdivision 1b.<br />
         		<a id="pl.33.31"></a><var>33.31</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Credit reimbursements.</b> The county auditor shall determine the tax <br />
         		<a id="pl.33.32"></a><var>33.32</var>reductions allowed under this section within the county for each taxes payable year and <br />
         		<a id="pl.34.1"></a><var>34.1</var>shall certify that amount to the commissioner of revenue as a part of the abstracts of tax <br />
         		<a id="pl.34.2"></a><var>34.2</var>lists submitted under section 275.29. Any prior year adjustments shall also be certified on <br />
         		<a id="pl.34.3"></a><var>34.3</var>the abstracts of tax lists. The commissioner shall review the certifications for accuracy, <br />
         		<a id="pl.34.4"></a><var>34.4</var>and may make such changes as are deemed necessary, or return the certification to the <br />
         		<a id="pl.34.5"></a><var>34.5</var>county auditor for correction. The credit under this section must be used to reduce the <br />
         		<a id="pl.34.6"></a><var>34.6</var>school district net tax capacity-based property tax as provided in section 
         <statute_ref>273.1393</statute_ref>.<br />
         		<a id="pl.34.7"></a><var>34.7</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Payment.</b> The commissioner of revenue shall certify the total of the tax <br />
         		<a id="pl.34.8"></a><var>34.8</var>reductions granted under this section for each taxes payable year within each school <br />
         		<a id="pl.34.9"></a><var>34.9</var>district to the commissioner of education, who shall pay the reimbursement amounts to <br />
         		<a id="pl.34.10"></a><var>34.10</var>each school district as provided in section 
         <statute_ref>273.1392</statute_ref>.<br />
         		<a id="pl.34.11"></a><var>34.11</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Appropriation.</b> An amount sufficient to make the payments required by this <br />
         		<a id="pl.34.12"></a><var>34.12</var>section is annually appropriated from the general fund to the commissioner of education.<br />
         		<a id="pl.34.13"></a><var>34.13</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.2.2.0"></a><a id="pl.34.14"></a><var>34.14</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 273.1392, is amended to read:<br />
         		<a id="pl.34.15"></a><var>34.15</var><b>273.1392 PAYMENT; SCHOOL DISTRICTS.</b><br />
         		<a id="pl.34.16"></a><var>34.16</var>The amounts of bovine tuberculosis credit reimbursements under section 
         <statute_ref>273.113</statute_ref>; <br />
         		<a id="pl.34.17"></a><var>34.17</var>conservation tax credits under section 
         <statute_ref>273.119</statute_ref>; disaster or emergency reimbursement <br />
         		<a id="pl.34.18"></a><var>34.18</var>under sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref>; homestead and agricultural credits under section <br />
         		<a id="pl.34.19"></a><var>34.19</var>sections 
         <statute_ref>273.1384</statute_ref> and 273.1387; aids and credits under section 
         <statute_ref>273.1398</statute_ref>; enterprise zone <br />
         		<a id="pl.34.20"></a><var>34.20</var>property credit payments under section 
         <statute_ref>469.171</statute_ref>; and metropolitan agricultural preserve <br />
         		<a id="pl.34.21"></a><var>34.21</var>reduction under section 
         <statute_ref>473H.10</statute_ref> for school districts, shall be certified to the Department <br />
         		<a id="pl.34.22"></a><var>34.22</var>of Education by the Department of Revenue. The amounts so certified shall be paid <br />
         		<a id="pl.34.23"></a><var>34.23</var>according to section 
         <statute_ref>127A.45</statute_ref>, subdivisions 9 and 13.<br />
         		<a id="pl.34.24"></a><var>34.24</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.2.3.0"></a><a id="pl.34.25"></a><var>34.25</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 273.1393, is amended to read:<br />
         		<a id="pl.34.26"></a><var>34.26</var><b>273.1393 COMPUTATION OF NET PROPERTY TAXES.</b><br />
         		<a id="pl.34.27"></a><var>34.27</var>&#160;&#160;&#160;&#160;Notwithstanding any other provisions to the contrary, "net" property taxes are <br />
         		<a id="pl.34.28"></a><var>34.28</var>determined by subtracting the credits in the order listed from the gross tax:<br />
         		<a id="pl.34.29"></a><var>34.29</var>&#160;&#160;&#160;&#160;(1) disaster credit as provided in sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref>;<br />
         		<a id="pl.34.30"></a><var>34.30</var>&#160;&#160;&#160;&#160;(2) powerline credit as provided in section 
         <statute_ref>273.42</statute_ref>;<br />
         		<a id="pl.34.31"></a><var>34.31</var>&#160;&#160;&#160;&#160;(3) agricultural preserves credit as provided in section 
         <statute_ref>473H.10</statute_ref>;<br />
         		<a id="pl.34.32"></a><var>34.32</var>&#160;&#160;&#160;&#160;(4) enterprise zone credit as provided in section 
         <statute_ref>469.171</statute_ref>;<br />
         		<a id="pl.34.33"></a><var>34.33</var>&#160;&#160;&#160;&#160;(5) disparity reduction credit;<br />
         		<a id="pl.35.1"></a><var>35.1</var>&#160;&#160;&#160;&#160;(6) conservation tax credit as provided in section 
         <statute_ref>273.119</statute_ref>;<br />
         		<a id="pl.35.2"></a><var>35.2</var>&#160;&#160;&#160;&#160;(7) the school bond credit, as provided in section 273.1387;<br />
         		<a id="pl.35.3"></a><var>35.3</var>&#160;&#160;&#160;&#160;(8) agricultural credit as provided in section 
         <statute_ref>273.1384</statute_ref>;<br />
         		<a id="pl.35.4"></a><var>35.4</var>&#160;&#160;&#160;&#160;(8) (9) taconite homestead credit as provided in section 
         <statute_ref>273.135</statute_ref>;<br />
         		<a id="pl.35.5"></a><var>35.5</var>&#160;&#160;&#160;&#160;(9) (10) supplemental homestead credit as provided in section 
         <statute_ref>273.1391</statute_ref>; and<br />
         		<a id="pl.35.6"></a><var>35.6</var>&#160;&#160;&#160;&#160;(10) (11) the bovine tuberculosis zone credit, as provided in section 
         <statute_ref>273.113</statute_ref>.<br />
         		<a id="pl.35.7"></a><var>35.7</var>&#160;&#160;&#160;&#160;The combination of all property tax credits must not exceed the gross tax amount.<br />
         		<a id="pl.35.8"></a><var>35.8</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.2.4.0"></a><a id="pl.35.9"></a><var>35.9</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 275.065, subdivision 3, is amended to read:<br />
         		<a id="pl.35.10"></a><var>35.10</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare <br />
         		<a id="pl.35.11"></a><var>35.11</var>and the county treasurer shall deliver after November 10 and on or before November 24 <br />
         		<a id="pl.35.12"></a><var>35.12</var>each year, by first class mail to each taxpayer at the address listed on the county's current <br />
         		<a id="pl.35.13"></a><var>35.13</var>year's assessment roll, a notice of proposed property taxes. Upon written request by <br />
         		<a id="pl.35.14"></a><var>35.14</var>the taxpayer, the treasurer may send the notice in electronic form or by electronic mail <br />
         		<a id="pl.35.15"></a><var>35.15</var>instead of on paper or by ordinary mail.<br />
         		<a id="pl.35.16"></a><var>35.16</var>&#160;&#160;&#160;&#160;(b) The commissioner of revenue shall prescribe the form of the notice.<br />
         		<a id="pl.35.17"></a><var>35.17</var>&#160;&#160;&#160;&#160;(c) The notice must inform taxpayers that it contains the amount of property taxes <br />
         		<a id="pl.35.18"></a><var>35.18</var>each taxing authority proposes to collect for taxes payable the following year. In the case of <br />
         		<a id="pl.35.19"></a><var>35.19</var>a town, or in the case of the state general tax, the final tax amount will be its proposed tax. <br />
         		<a id="pl.35.20"></a><var>35.20</var>The notice must clearly state for each city that has a population over 500, county, school <br />
         		<a id="pl.35.21"></a><var>35.21</var>district, regional library authority established under section 
         <statute_ref>134.201</statute_ref>, and metropolitan <br />
         		<a id="pl.35.22"></a><var>35.22</var>taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing <br />
         		<a id="pl.35.23"></a><var>35.23</var>authority in which the budget and levy will be discussed and public input allowed, prior to <br />
         		<a id="pl.35.24"></a><var>35.24</var>the final budget and levy determination. The taxing authorities must provide the county <br />
         		<a id="pl.35.25"></a><var>35.25</var>auditor with the information to be included in the notice on or before the time it certifies <br />
         		<a id="pl.35.26"></a><var>35.26</var>its proposed levy under subdivision 1. The public must be allowed to speak at that <br />
         		<a id="pl.35.27"></a><var>35.27</var>meeting, which must occur after November 24 and must not be held before 6:00 p.m. It <br />
         		<a id="pl.35.28"></a><var>35.28</var>must provide a telephone number for the taxing authority that taxpayers may call if they <br />
         		<a id="pl.35.29"></a><var>35.29</var>have questions related to the notice and an address where comments will be received by <br />
         		<a id="pl.35.30"></a><var>35.30</var>mail, except that no notice required under this section shall be interpreted as requiring the <br />
         		<a id="pl.35.31"></a><var>35.31</var>printing of a personal telephone number or address as the contact information for a taxing <br />
         		<a id="pl.35.32"></a><var>35.32</var>authority. If a taxing authority does not maintain public offices where telephone calls can <br />
         		<a id="pl.35.33"></a><var>35.33</var>be received by the authority, the authority may inform the county of the lack of a public <br />
         		<a id="pl.35.34"></a><var>35.34</var>telephone number and the county shall not list a telephone number for that taxing authority.<br />
         		<a id="pl.35.35"></a><var>35.35</var>&#160;&#160;&#160;&#160;(d) The notice must state for each parcel:<br />
         		<a id="pl.36.1"></a><var>36.1</var>&#160;&#160;&#160;&#160;(1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used <br />
         		<a id="pl.36.2"></a><var>36.2</var>for computing property taxes payable in the following year and for taxes payable in the <br />
         		<a id="pl.36.3"></a><var>36.3</var>current year as each appears in the records of the county assessor on November 1 of the <br />
         		<a id="pl.36.4"></a><var>36.4</var>current year; and, in the case of residential property, whether the property is classified as <br />
         		<a id="pl.36.5"></a><var>36.5</var>homestead or nonhomestead. The notice must clearly inform taxpayers of the years to <br />
         		<a id="pl.36.6"></a><var>36.6</var>which the market values apply and that the values are final values;<br />
         		<a id="pl.36.7"></a><var>36.7</var>&#160;&#160;&#160;&#160;(2) the items listed below, shown separately by county, city or town, and state <br />
         		<a id="pl.36.8"></a><var>36.8</var>general tax, agricultural homestead credit under section 
         <statute_ref>273.1384</statute_ref>, school building bond <br />
         		<a id="pl.36.9"></a><var>36.9</var>agricultural credit under section 273.1387, voter approved school levy, other local school <br />
         		<a id="pl.36.10"></a><var>36.10</var>levy, and the sum of the special taxing districts, and as a total of all taxing authorities:<br />
         		<a id="pl.36.11"></a><var>36.11</var>&#160;&#160;&#160;&#160;(i) the actual tax for taxes payable in the current year; and<br />
         		<a id="pl.36.12"></a><var>36.12</var>&#160;&#160;&#160;&#160;(ii) the proposed tax amount.<br />
         		<a id="pl.36.13"></a><var>36.13</var>&#160;&#160;&#160;&#160;If the county levy under clause (2) includes an amount for a lake improvement <br />
         		<a id="pl.36.14"></a><var>36.14</var>district as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that <br />
         		<a id="pl.36.15"></a><var>36.15</var>purpose must be separately stated from the remaining county levy amount.<br />
         		<a id="pl.36.16"></a><var>36.16</var>&#160;&#160;&#160;&#160;In the case of a town or the state general tax, the final tax shall also be its proposed <br />
         		<a id="pl.36.17"></a><var>36.17</var>tax unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a <br />
         		<a id="pl.36.18"></a><var>36.18</var>school district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will <br />
         		<a id="pl.36.19"></a><var>36.19</var>be held in the school district at the November general election, the county auditor must <br />
         		<a id="pl.36.20"></a><var>36.20</var>note next to the school district's proposed amount that a referendum is pending and that, if <br />
         		<a id="pl.36.21"></a><var>36.21</var>approved by the voters, the tax amount may be higher than shown on the notice. In the <br />
         		<a id="pl.36.22"></a><var>36.22</var>case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be <br />
         		<a id="pl.36.23"></a><var>36.23</var>listed separately from the remaining amount of the city's levy. In the case of the city of <br />
         		<a id="pl.36.24"></a><var>36.24</var>St. Paul, the levy for the St. Paul Library Agency must be listed separately from the <br />
         		<a id="pl.36.25"></a><var>36.25</var>remaining amount of the city's levy. In the case of Ramsey County, any amount levied <br />
         		<a id="pl.36.26"></a><var>36.26</var>under section 
         <statute_ref>134.07</statute_ref> may be listed separately from the remaining amount of the county's <br />
         		<a id="pl.36.27"></a><var>36.27</var>levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax <br />
         		<a id="pl.36.28"></a><var>36.28</var>under chapter 276A or 473F applies, the proposed tax levy on the captured value or the <br />
         		<a id="pl.36.29"></a><var>36.29</var>proposed tax levy on the tax capacity subject to the areawide tax must each be stated <br />
         		<a id="pl.36.30"></a><var>36.30</var>separately and not included in the sum of the special taxing districts; and<br />
         		<a id="pl.36.31"></a><var>36.31</var>&#160;&#160;&#160;&#160;(3) the increase or decrease between the total taxes payable in the current year and <br />
         		<a id="pl.36.32"></a><var>36.32</var>the total proposed taxes, expressed as a percentage.<br />
         		<a id="pl.36.33"></a><var>36.33</var>&#160;&#160;&#160;&#160;For purposes of this section, the amount of the tax on homesteads qualifying under <br />
         		<a id="pl.36.34"></a><var>36.34</var>the senior citizens' property tax deferral program under chapter 290B is the total amount <br />
         		<a id="pl.36.35"></a><var>36.35</var>of property tax before subtraction of the deferred property tax amount.<br />
         		<a id="pl.37.1"></a><var>37.1</var>&#160;&#160;&#160;&#160;(e) The notice must clearly state that the proposed or final taxes do not include <br />
         		<a id="pl.37.2"></a><var>37.2</var>the following:<br />
         		<a id="pl.37.3"></a><var>37.3</var>&#160;&#160;&#160;&#160;(1) special assessments;<br />
         		<a id="pl.37.4"></a><var>37.4</var>&#160;&#160;&#160;&#160;(2) levies approved by the voters after the date the proposed taxes are certified, <br />
         		<a id="pl.37.5"></a><var>37.5</var>including bond referenda and school district levy referenda;<br />
         		<a id="pl.37.6"></a><var>37.6</var>&#160;&#160;&#160;&#160;(3) a levy limit increase approved by the voters by the first Tuesday after the first <br />
         		<a id="pl.37.7"></a><var>37.7</var>Monday in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br />
         		<a id="pl.37.8"></a><var>37.8</var>&#160;&#160;&#160;&#160;(4) amounts necessary to pay cleanup or other costs due to a natural disaster <br />
         		<a id="pl.37.9"></a><var>37.9</var>occurring after the date the proposed taxes are certified;<br />
         		<a id="pl.37.10"></a><var>37.10</var>&#160;&#160;&#160;&#160;(5) amounts necessary to pay tort judgments against the taxing authority that become <br />
         		<a id="pl.37.11"></a><var>37.11</var>final after the date the proposed taxes are certified; and<br />
         		<a id="pl.37.12"></a><var>37.12</var>&#160;&#160;&#160;&#160;(6) the contamination tax imposed on properties which received market value <br />
         		<a id="pl.37.13"></a><var>37.13</var>reductions for contamination.<br />
         		<a id="pl.37.14"></a><var>37.14</var>&#160;&#160;&#160;&#160;(f) Except as provided in subdivision 7, failure of the county auditor to prepare or <br />
         		<a id="pl.37.15"></a><var>37.15</var>the county treasurer to deliver the notice as required in this section does not invalidate the <br />
         		<a id="pl.37.16"></a><var>37.16</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br />
         		<a id="pl.37.17"></a><var>37.17</var>&#160;&#160;&#160;&#160;(g) If the notice the taxpayer receives under this section lists the property as <br />
         		<a id="pl.37.18"></a><var>37.18</var>nonhomestead, and satisfactory documentation is provided to the county assessor by the <br />
         		<a id="pl.37.19"></a><var>37.19</var>applicable deadline, and the property qualifies for the homestead classification in that <br />
         		<a id="pl.37.20"></a><var>37.20</var>assessment year, the assessor shall reclassify the property to homestead for taxes payable <br />
         		<a id="pl.37.21"></a><var>37.21</var>in the following year.<br />
         		<a id="pl.37.22"></a><var>37.22</var>&#160;&#160;&#160;&#160;(h) In the case of class 4 residential property used as a residence for lease or rental <br />
         		<a id="pl.37.23"></a><var>37.23</var>periods of 30 days or more, the taxpayer must either:<br />
         		<a id="pl.37.24"></a><var>37.24</var>&#160;&#160;&#160;&#160;(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, <br />
         		<a id="pl.37.25"></a><var>37.25</var>renter, or lessee; or<br />
         		<a id="pl.37.26"></a><var>37.26</var>&#160;&#160;&#160;&#160;(2) post a copy of the notice in a conspicuous place on the premises of the property.<br />
         		<a id="pl.37.27"></a><var>37.27</var>&#160;&#160;&#160;&#160;The notice must be mailed or posted by the taxpayer by November 27 or within <br />
         		<a id="pl.37.28"></a><var>37.28</var>three days of receipt of the notice, whichever is later. A taxpayer may notify the county <br />
         		<a id="pl.37.29"></a><var>37.29</var>treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to <br />
         		<a id="pl.37.30"></a><var>37.30</var>which the notice must be mailed in order to fulfill the requirements of this paragraph.<br />
         		<a id="pl.37.31"></a><var>37.31</var>&#160;&#160;&#160;&#160;(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing <br />
         		<a id="pl.37.32"></a><var>37.32</var>districts" means the following taxing districts in the seven-county metropolitan area that <br />
         		<a id="pl.37.33"></a><var>37.33</var>levy a property tax for any of the specified purposes listed below:<br />
         		<a id="pl.37.34"></a><var>37.34</var>&#160;&#160;&#160;&#160;(1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, <br />
         		
         <statute_ref><a id="pl.37.35"></a><var>37.35</var>473.446
         </statute_ref>, 
         <statute_ref>473.521</statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br />
         		<a id="pl.38.1"></a><var>38.1</var>&#160;&#160;&#160;&#160;(2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; <br />
         		<a id="pl.38.2"></a><var>38.2</var>and<br />
         		<a id="pl.38.3"></a><var>38.3</var>&#160;&#160;&#160;&#160;(3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br />
         		<a id="pl.38.4"></a><var>38.4</var>&#160;&#160;&#160;&#160;For purposes of this section, any levies made by the regional rail authorities in the <br />
         		<a id="pl.38.5"></a><var>38.5</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br />
         		<a id="pl.38.6"></a><var>38.6</var>398A shall be included with the appropriate county's levy.<br />
         		<a id="pl.38.7"></a><var>38.7</var>&#160;&#160;&#160;&#160;(j) The governing body of a county, city, or school district may, with the consent <br />
         		<a id="pl.38.8"></a><var>38.8</var>of the county board, include supplemental information with the statement of proposed <br />
         		<a id="pl.38.9"></a><var>38.9</var>property taxes about the impact of state aid increases or decreases on property tax <br />
         		<a id="pl.38.10"></a><var>38.10</var>increases or decreases and on the level of services provided in the affected jurisdiction. <br />
         		<a id="pl.38.11"></a><var>38.11</var>This supplemental information may include information for the following year, the current <br />
         		<a id="pl.38.12"></a><var>38.12</var>year, and for as many consecutive preceding years as deemed appropriate by the governing <br />
         		<a id="pl.38.13"></a><var>38.13</var>body of the county, city, or school district. It may include only information regarding:<br />
         		<a id="pl.38.14"></a><var>38.14</var>&#160;&#160;&#160;&#160;(1) the impact of inflation as measured by the implicit price deflator for state and <br />
         		<a id="pl.38.15"></a><var>38.15</var>local government purchases;<br />
         		<a id="pl.38.16"></a><var>38.16</var>&#160;&#160;&#160;&#160;(2) population growth and decline;<br />
         		<a id="pl.38.17"></a><var>38.17</var>&#160;&#160;&#160;&#160;(3) state or federal government action; and<br />
         		<a id="pl.38.18"></a><var>38.18</var>&#160;&#160;&#160;&#160;(4) other financial factors that affect the level of property taxation and local services <br />
         		<a id="pl.38.19"></a><var>38.19</var>that the governing body of the county, city, or school district may deem appropriate to <br />
         		<a id="pl.38.20"></a><var>38.20</var>include.<br />
         		<a id="pl.38.21"></a><var>38.21</var>&#160;&#160;&#160;&#160;The information may be presented using tables, written narrative, and graphic <br />
         		<a id="pl.38.22"></a><var>38.22</var>representations and may contain instruction toward further sources of information or <br />
         		<a id="pl.38.23"></a><var>38.23</var>opportunity for comment.<br />
         		<a id="pl.38.24"></a><var>38.24</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.2.5.0"></a><a id="pl.38.25"></a><var>38.25</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 275.07, subdivision 2, is amended to read:<br />
         		<a id="pl.38.26"></a><var>38.26</var>&#160;&#160;&#160;&#160;Subd. 2. <b>School district </b><b>in more than one county</b><b> levies; special requirements</b><b>.</b> (a) <br />
         		<a id="pl.38.27"></a><var>38.27</var>In school districts lying in more than one county, the clerk shall certify the tax levied to the <br />
         		<a id="pl.38.28"></a><var>38.28</var>auditor of the county in which the administrative offices of the school district are located.<br />
         		<a id="pl.38.29"></a><var>38.29</var>(b) The district must identify the portion of the school district levy that is levied for <br />
         		<a id="pl.38.30"></a><var>38.30</var>debt service at the time the levy is certified under this section. For the purposes of this <br />
         		<a id="pl.38.31"></a><var>38.31</var>paragraph, "levied for debt service" means levies authorized under sections 123B.53, <br />
         		<a id="pl.38.32"></a><var>38.32</var>123B.535, and 123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt <br />
         		<a id="pl.38.33"></a><var>38.33</var>excess levy reductions under section 475.61, subdivision 4, excluding debt service <br />
         		<a id="pl.38.34"></a><var>38.34</var>amounts necessary for repayment of other postemployment benefits under section 475.52, <br />
         		<a id="pl.38.35"></a><var>38.35</var>subdivision 6.<br />
         		<a id="pl.39.1"></a><var>39.1</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.2.6.0"></a><a id="pl.39.2"></a><var>39.2</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 275.08, subdivision 1b, is amended to read:<br />
         		<a id="pl.39.3"></a><var>39.3</var>&#160;&#160;&#160;&#160;Subd. 1b. <b>Computation of tax rates.</b> (a) The amounts certified to be levied against <br />
         		<a id="pl.39.4"></a><var>39.4</var>net tax capacity under section 
         <statute_ref>275.07</statute_ref> by an individual local government unit shall be <br />
         		<a id="pl.39.5"></a><var>39.5</var>divided by the total net tax capacity of all taxable properties within the local government <br />
         		<a id="pl.39.6"></a><var>39.6</var>unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate, <br />
         		<a id="pl.39.7"></a><var>39.7</var>multiplied by each property's net tax capacity shall be each property's net tax capacity tax <br />
         		<a id="pl.39.8"></a><var>39.8</var>for that local government unit before reduction by any credits.<br />
         		<a id="pl.39.9"></a><var>39.9</var>(b) The auditor must also determine the school debt tax rate for each school district <br />
         		<a id="pl.39.10"></a><var>39.10</var>equal to (1) the school debt service levy certified under section 275.07, subdivision 2, <br />
         		<a id="pl.39.11"></a><var>39.11</var>divided by (2) the total net tax capacity of all taxable property within the district.<br />
         		<a id="pl.39.12"></a><var>39.12</var>(c) Any amount certified to the county auditor to be levied against market value shall <br />
         		<a id="pl.39.13"></a><var>39.13</var>be divided by the total referendum market value of all taxable properties within the taxing <br />
         		<a id="pl.39.14"></a><var>39.14</var>district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by <br />
         		<a id="pl.39.15"></a><var>39.15</var>each property's referendum market value shall be each property's new referendum tax <br />
         		<a id="pl.39.16"></a><var>39.16</var>before reduction by any credits. For the purposes of this subdivision, "referendum market <br />
         		<a id="pl.39.17"></a><var>39.17</var>value" means the market value as defined in section 
         <statute_ref>126C.01, subdivision 3</statute_ref>.<br />
         		<a id="pl.39.18"></a><var>39.18</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.2.7.0"></a><a id="pl.39.19"></a><var>39.19</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read:<br />
         		<a id="pl.39.20"></a><var>39.20</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the printing <br />
         		<a id="pl.39.21"></a><var>39.21</var>of the tax statements. The commissioner of revenue shall prescribe the form of the property <br />
         		<a id="pl.39.22"></a><var>39.22</var>tax statement and its contents. The tax statement must not state or imply that property tax <br />
         		<a id="pl.39.23"></a><var>39.23</var>credits are paid by the state of Minnesota. The statement must contain a tabulated statement <br />
         		<a id="pl.39.24"></a><var>39.24</var>of the dollar amount due to each taxing authority and the amount of the state tax from the <br />
         		<a id="pl.39.25"></a><var>39.25</var>parcel of real property for which a particular tax statement is prepared. The dollar amounts <br />
         		<a id="pl.39.26"></a><var>39.26</var>attributable to the county, the state tax, the voter approved school tax, the other local school <br />
         		<a id="pl.39.27"></a><var>39.27</var>tax, the township or municipality, and the total of the metropolitan special taxing districts <br />
         		<a id="pl.39.28"></a><var>39.28</var>as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, paragraph (i), must be separately stated. <br />
         		<a id="pl.39.29"></a><var>39.29</var>The amounts due all other special taxing districts, if any, may be aggregated except that <br />
         		<a id="pl.39.30"></a><var>39.30</var>any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, <br />
         		<a id="pl.39.31"></a><var>39.31</var>Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate <br />
         		<a id="pl.39.32"></a><var>39.32</var>line directly under the appropriate county's levy. If the county levy under this paragraph <br />
         		<a id="pl.39.33"></a><var>39.33</var>includes an amount for a lake improvement district as defined under sections 
         <statute_ref>103B.501 <br />
            		
         </statute_ref><a id="pl.39.34"></a><var>39.34</var>to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose must be separately stated from the <br />
         		<a id="pl.40.1"></a><var>40.1</var>remaining county levy amount. In the case of Ramsey County, if the county levy under this <br />
         		<a id="pl.40.2"></a><var>40.2</var>paragraph includes an amount for public library service under section 
         <statute_ref>134.07</statute_ref>, the amount <br />
         		<a id="pl.40.3"></a><var>40.3</var>attributable for that purpose may be separated from the remaining county levy amount. <br />
         		<a id="pl.40.4"></a><var>40.4</var>The amount of the tax on homesteads qualifying under the senior citizens' property tax <br />
         		<a id="pl.40.5"></a><var>40.5</var>deferral program under chapter 290B is the total amount of property tax before subtraction <br />
         		<a id="pl.40.6"></a><var>40.6</var>of the deferred property tax amount. The amount of the tax on contamination value <br />
         		<a id="pl.40.7"></a><var>40.7</var>imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, must also be separately stated. The dollar <br />
         		<a id="pl.40.8"></a><var>40.8</var>amounts, including the dollar amount of any special assessments, may be rounded to the <br />
         		<a id="pl.40.9"></a><var>40.9</var>nearest even whole dollar. For purposes of this section whole odd-numbered dollars may <br />
         		<a id="pl.40.10"></a><var>40.10</var>be adjusted to the next higher even-numbered dollar. The amount of market value excluded <br />
         		<a id="pl.40.11"></a><var>40.11</var>under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, must also be listed on the tax statement.<br />
         		<a id="pl.40.12"></a><var>40.12</var>&#160;&#160;&#160;&#160;(b) The property tax statements for manufactured homes and sectional structures <br />
         		<a id="pl.40.13"></a><var>40.13</var>taxed as personal property shall contain the same information that is required on the <br />
         		<a id="pl.40.14"></a><var>40.14</var>tax statements for real property.<br />
         		<a id="pl.40.15"></a><var>40.15</var>&#160;&#160;&#160;&#160;(c) Real and personal property tax statements must contain the following information <br />
         		<a id="pl.40.16"></a><var>40.16</var>in the order given in this paragraph. The information must contain the current year tax <br />
         		<a id="pl.40.17"></a><var>40.17</var>information in the right column with the corresponding information for the previous year <br />
         		<a id="pl.40.18"></a><var>40.18</var>in a column on the left:<br />
         		<a id="pl.40.19"></a><var>40.19</var>&#160;&#160;&#160;&#160;(1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br />
         		<a id="pl.40.20"></a><var>40.20</var>&#160;&#160;&#160;&#160;(2) the property's homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, <br />
         		<a id="pl.40.21"></a><var>40.21</var>subdivision 35;<br />
         		<a id="pl.40.22"></a><var>40.22</var>&#160;&#160;&#160;&#160;(3) the property's taxable market value under section 
         <statute_ref>272.03, subdivision 15</statute_ref>;<br />
         		<a id="pl.40.23"></a><var>40.23</var>&#160;&#160;&#160;&#160;(4) the property's gross tax, before credits;<br />
         		<a id="pl.40.24"></a><var>40.24</var>&#160;&#160;&#160;&#160;(5) for homestead agricultural properties, the credit credits under section sections <br />
         		<a id="pl.40.25"></a><var>40.25</var>273.1384 and 273.1387;<br />
         		<a id="pl.40.26"></a><var>40.26</var>&#160;&#160;&#160;&#160;(6) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br />
         		
         <statute_ref><a id="pl.40.27"></a><var>40.27</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of <br />
         		<a id="pl.40.28"></a><var>40.28</var>credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite <br />
         		<a id="pl.40.29"></a><var>40.29</var>tax relief"; and<br />
         		<a id="pl.40.30"></a><var>40.30</var>&#160;&#160;&#160;&#160;(7) the net tax payable in the manner required in paragraph (a).<br />
         		<a id="pl.40.31"></a><var>40.31</var>&#160;&#160;&#160;&#160;(d) If the county uses envelopes for mailing property tax statements and if the county <br />
         		<a id="pl.40.32"></a><var>40.32</var>agrees, a taxing district may include a notice with the property tax statement notifying <br />
         		<a id="pl.40.33"></a><var>40.33</var>taxpayers when the taxing district will begin its budget deliberations for the current <br />
         		<a id="pl.40.34"></a><var>40.34</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br />
         		<a id="pl.40.35"></a><var>40.35</var>be included in the envelope containing the property tax statement, and if more than <br />
         		<a id="pl.40.36"></a><var>40.36</var>one taxing district relative to a given property decides to include a notice with the tax <br />
         		<a id="pl.41.1"></a><var>41.1</var>statement, the county treasurer or auditor must coordinate the process and may combine <br />
         		<a id="pl.41.2"></a><var>41.2</var>the information on a single announcement.<br />
         		<a id="pl.41.3"></a><var>41.3</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br />
         		<br />
         		<a id="bill.2.8.0"></a><a id="pl.41.4"></a><var>41.4</var>&#160;&#160;&#160;&#160;Sec. 8. <b>[477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR </b><br />
         		<a id="pl.41.5"></a><var>41.5</var><b>CERTAIN OUT-OF-HOME PLACEMENT.</b><br />
         		<a id="pl.41.6"></a><var>41.6</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definition.</b> When used in this section, "out-of-home placement" <br />
         		<a id="pl.41.7"></a><var>41.7</var>means 24-hour substitute care for an Indian child as defined by section 260C.007, <br />
         		<a id="pl.41.8"></a><var>41.8</var>subdivision 21, placed under the Indian Child Welfare Act (ICWA) and chapter 260C, <br />
         		<a id="pl.41.9"></a><var>41.9</var>away from the child's parent or guardian and for whom the county social services agency <br />
         		<a id="pl.41.10"></a><var>41.10</var>or county correctional agency has been assigned responsibility for the child's placement <br />
         		<a id="pl.41.11"></a><var>41.11</var>and care, which includes placement in foster care under section 260C.007, subdivision <br />
         		<a id="pl.41.12"></a><var>41.12</var>18, and a correctional facility pursuant to a court order.<br />
         		<a id="pl.41.13"></a><var>41.13</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Determination of nonfederal share of costs.</b> (a) By January 1, 2017, each <br />
         		<a id="pl.41.14"></a><var>41.14</var>county shall report the following information to the commissioners of human services and <br />
         		<a id="pl.41.15"></a><var>41.15</var>corrections: (1) the separate amounts paid out of its social service agency and its corrections <br />
         		<a id="pl.41.16"></a><var>41.16</var>budget for out-of-home placement of children under the ICWA in calendar years 2013, <br />
         		<a id="pl.41.17"></a><var>41.17</var>2014, and 2015; and (2) the number of case days associated with the expenditures from <br />
         		<a id="pl.41.18"></a><var>41.18</var>each budget. By March 15, 2017, the commissioner of human services, in consultation with <br />
         		<a id="pl.41.19"></a><var>41.19</var>the commissioner of corrections, shall certify to the commissioner of revenue and to the <br />
         		<a id="pl.41.20"></a><var>41.20</var>legislative committees responsible for local government aids and out-of-home placement <br />
         		<a id="pl.41.21"></a><var>41.21</var>funding, whether the data reported under this subdivision accurately reflects total <br />
         		<a id="pl.41.22"></a><var>41.22</var>expenditures by counties for out-of-home placement costs of children under the ICWA.<br />
         		<a id="pl.41.23"></a><var>41.23</var>(b) By January 1, 2019, and each January 1 thereafter, each county shall report to the <br />
         		<a id="pl.41.24"></a><var>41.24</var>commissioners of human services and corrections the separate amounts paid out of its <br />
         		<a id="pl.41.25"></a><var>41.25</var>social service agency and its corrections budget for out-of-home placement of children <br />
         		<a id="pl.41.26"></a><var>41.26</var>under the ICWA in the calendar years two years before the current calendar year along <br />
         		<a id="pl.41.27"></a><var>41.27</var>with the number of case days associated with the expenditures from each budget.<br />
         		<a id="pl.41.28"></a><var>41.28</var>(c) Until the commissioner of human services develops another mechanism for <br />
         		<a id="pl.41.29"></a><var>41.29</var>collecting and verifying data on out-of-home placements of children under the ICWA, and <br />
         		<a id="pl.41.30"></a><var>41.30</var>the legislature authorizes the use of that data, the data collected under this subdivision <br />
         		<a id="pl.41.31"></a><var>41.31</var>must be used to calculate payments under subdivision 3. The commissioner of human <br />
         		<a id="pl.41.32"></a><var>41.32</var>services shall certify the nonfederal out-of-home placement costs for the three prior <br />
         		<a id="pl.41.33"></a><var>41.33</var>calendar years for each county to the commissioner of revenue by June 1 of the year <br />
         		<a id="pl.41.34"></a><var>41.34</var>prior to the aid payment.<br />
         		<a id="pl.42.1"></a><var>42.1</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Aid payments to counties.</b> For aids payable in calendar year 2018 and <br />
         		<a id="pl.42.2"></a><var>42.2</var>thereafter, the commissioner of revenue shall reimburse each county for 100 percent of <br />
         		<a id="pl.42.3"></a><var>42.3</var>the nonfederal share of the cost of out-of-home placement of children under the ICWA <br />
         		<a id="pl.42.4"></a><var>42.4</var>provided the commissioner of human services, in consultation with the commissioner <br />
         		<a id="pl.42.5"></a><var>42.5</var>of corrections, certifies to the commissioner of revenue that accurate data is available <br />
         		<a id="pl.42.6"></a><var>42.6</var>to make the aid determination under this section. The amount of reimbursement is the <br />
         		<a id="pl.42.7"></a><var>42.7</var>county's average nonfederal share of the cost for out-of-home placement of children <br />
         		<a id="pl.42.8"></a><var>42.8</var>under the ICWA for the most recent three calendar years for which data is available. <br />
         		<a id="pl.42.9"></a><var>42.9</var>The commissioner shall pay the aid under the schedule used for local government aid <br />
         		<a id="pl.42.10"></a><var>42.10</var>payments under section 477A.015.<br />
         		<a id="pl.42.11"></a><var>42.11</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Aid payments to tribes.</b> (a) By January 1, 2017, and each year <br />
         		<a id="pl.42.12"></a><var>42.12</var>thereafter, each tribe must certify to the commissioner of revenue the amount of federal <br />
         		<a id="pl.42.13"></a><var>42.13</var>reimbursement received by the tribe for out-of-home placement of children under the <br />
         		<a id="pl.42.14"></a><var>42.14</var>ICWA for the immediately preceding three calendar years. The commissioner of revenue <br />
         		<a id="pl.42.15"></a><var>42.15</var>shall prescribe the format of the certification. For purposes of this section, "tribe" has the <br />
         		<a id="pl.42.16"></a><var>42.16</var>meaning provided in section 260.755, subdivision 12.<br />
         		<a id="pl.42.17"></a><var>42.17</var>(b) The amount of reimbursement to the tribe shall be the greater of: (1) five <br />
         		<a id="pl.42.18"></a><var>42.18</var>percent of the average reimbursement amount received from the federal government for <br />
         		<a id="pl.42.19"></a><var>42.19</var>out-of-home placement costs for the most recent three calendar years; or (2) $200,000. <br />
         		<a id="pl.42.20"></a><var>42.20</var>The commissioner shall pay the aid under this section under the schedule used for local <br />
         		<a id="pl.42.21"></a><var>42.21</var>government aid payments under section 477A.015.<br />
         		<a id="pl.42.22"></a><var>42.22</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Appropriation.</b> An amount sufficient to pay aid under this section is <br />
         		<a id="pl.42.23"></a><var>42.23</var>annually appropriated to the commissioner of revenue from the general fund.<br />
         		<a id="pl.42.24"></a><var>42.24</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2018.<br />
         		<br />
         		<a id="bill.2.9.0"></a><a id="pl.42.25"></a><var>42.25</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2015 Supplement, section 477A.015, is amended to read:<br />
         		<a id="pl.42.26"></a><var>42.26</var><b>477A.015 PAYMENT DATES.</b><br />
         		<a id="pl.42.27"></a><var>42.27</var>(a) The commissioner of revenue shall make the payments of local government aid <br />
         		<a id="pl.42.28"></a><var>42.28</var>to affected taxing authorities in two installments on July 20 and December 26 annually.<br />
         		<a id="pl.42.29"></a><var>42.29</var>(b) Notwithstanding paragraph (a), for aids payable in 2017 only, the commissioner <br />
         		<a id="pl.42.30"></a><var>42.30</var>of revenue shall make payments of the aid payable under section 477A.013, subdivision <br />
         		<a id="pl.42.31"></a><var>42.31</var>9, in three installments as follows: (1) 6.5 percent of the aid shall be paid on June 15, <br />
         		<a id="pl.42.32"></a><var>42.32</var>2017; (2) 43.5 percent of the aid shall be paid on July 20, 2017; and (3) 50 percent of the <br />
         		<a id="pl.42.33"></a><var>42.33</var>aid shall be paid on December 26, 2017. <br />
         		<a id="pl.43.1"></a><var>43.1</var>(c) When the commissioner of public safety determines that a local government has <br />
         		<a id="pl.43.2"></a><var>43.2</var>suffered financial hardship due to a natural disaster, the commissioner of public safety <br />
         		<a id="pl.43.3"></a><var>43.3</var>shall notify the commissioner of revenue, who shall make payments of aids under sections <br />
         		
         <statute_ref><a id="pl.43.4"></a><var>43.4</var>477A.011
         </statute_ref> to 
         <statute_ref>477A.014</statute_ref>, which are otherwise due on December 26, as soon as is practical <br />
         		<a id="pl.43.5"></a><var>43.5</var>after the determination is made but not before July 20.<br />
         		<a id="pl.43.6"></a><var>43.6</var>(d) The commissioner may pay all or part of the payments of aids under sections <br />
         		
         <statute_ref><a id="pl.43.7"></a><var>43.7</var>477A.011
         </statute_ref> to 
         <statute_ref>477A.014</statute_ref>, which are due on December 26 at any time after August 15 if a local <br />
         		<a id="pl.43.8"></a><var>43.8</var>government requests such payment as being necessary for meeting its cash flow needs.<br />
         		<a id="pl.43.9"></a><var>43.9</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2017.<br />
         		<br />
         		<a id="bill.2.10.0"></a><a id="pl.43.10"></a><var>43.10</var>&#160;&#160;&#160;&#160;Sec. 10. Minnesota Statutes 2014, section 477A.017, subdivision 2, is amended to read:<br />
         		<a id="pl.43.11"></a><var>43.11</var>&#160;&#160;&#160;&#160;Subd. 2. <b>State auditor's duties.</b> The state auditor shall prescribe uniform financial <br />
         		<a id="pl.43.12"></a><var>43.12</var>accounting and reporting standards in conformity with national standards to be applicable <br />
         		<a id="pl.43.13"></a><var>43.13</var>to cities and towns of more than 2,500 population and uniform reporting standards to be <br />
         		<a id="pl.43.14"></a><var>43.14</var>applicable to cities and towns of less than 2,500 population.<br />
         		<a id="pl.43.15"></a><var>43.15</var><b>EFFECTIVE DATE.</b>This section applies to reporting of financial information for <br />
         		<a id="pl.43.16"></a><var>43.16</var>calendar year 2016 and thereafter.<br />
         		<br />
         		<a id="bill.2.11.0"></a><a id="pl.43.17"></a><var>43.17</var>&#160;&#160;&#160;&#160;Sec. 11. Minnesota Statutes 2014, section 477A.017, subdivision 3, is amended to read:<br />
         		<a id="pl.43.18"></a><var>43.18</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Conformity.</b> Other law to the contrary notwithstanding, in order to receive <br />
         		<a id="pl.43.19"></a><var>43.19</var>distributions under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.03</statute_ref>, counties and,  cities, and towns must <br />
         		<a id="pl.43.20"></a><var>43.20</var>conform to the standards set in subdivision 2 in making all financial reports required to be <br />
         		<a id="pl.43.21"></a><var>43.21</var>made to the state auditor after June 30, 1984.<br />
         		<a id="pl.43.22"></a><var>43.22</var><b>EFFECTIVE DATE.</b>This section applies to reporting of financial information for <br />
         		<a id="pl.43.23"></a><var>43.23</var>aids payable in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.2.12.0"></a><a id="pl.43.24"></a><var>43.24</var>&#160;&#160;&#160;&#160;Sec. 12. Minnesota Statutes 2015 Supplement, section 477A.03, subdivision 2a, <br />
         		<a id="pl.43.25"></a><var>43.25</var>is amended to read:<br />
         		<a id="pl.43.26"></a><var>43.26</var>&#160;&#160;&#160;&#160;Subd. 2a. <b>Cities.</b>  The total aid paid under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is <br />
         		<a id="pl.43.27"></a><var>43.27</var>$516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter, the total <br />
         		<a id="pl.43.28"></a><var>43.28</var>aid paid under section 
         <statute_ref>477A.013, subdivision </statute_ref>9, is $519,398,012. For aids payable in 2017 <br />
         		<a id="pl.43.29"></a><var>43.29</var>and thereafter, the total aid paid under section 477A.013, subdivision 9, is $539,398,012.<br />
         		<a id="pl.43.30"></a><var>43.30</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br />
         		<a id="pl.43.31"></a><var>43.31</var>2017 and thereafter.<br />
         		<br />
         		<a id="bill.2.13.0"></a><a id="pl.44.1"></a><var>44.1</var>&#160;&#160;&#160;&#160;Sec. 13. Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read:<br />
         		<a id="pl.44.2"></a><var>44.2</var>&#160;&#160;&#160;&#160;Subd. 2b. <b>Counties.</b> (a) For aids payable in 2014 and thereafter through 2016, the <br />
         		<a id="pl.44.3"></a><var>44.3</var>total aid payable under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, is $100,795,000. For aids <br />
         		<a id="pl.44.4"></a><var>44.4</var>payable in 2017 through 2024, the total aid payable under section 477A.0124, subdivision <br />
         		<a id="pl.44.5"></a><var>44.5</var>3, is $108,795,000, of which $3,000,000 shall be allocated as required under Laws 2014, <br />
         		<a id="pl.44.6"></a><var>44.6</var>chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, the total aid <br />
         		<a id="pl.44.7"></a><var>44.7</var>payable under section 477A.0124, subdivision 3, is $105,795,000. Each calendar year, <br />
         		<a id="pl.44.8"></a><var>44.8</var>$500,000 of this appropriation shall be retained by the commissioner of revenue to <br />
         		<a id="pl.44.9"></a><var>44.9</var>make reimbursements to the commissioner of management and budget for payments <br />
         		<a id="pl.44.10"></a><var>44.10</var>made under section 
         <statute_ref>611.27</statute_ref>. The reimbursements shall be to defray the additional costs <br />
         		<a id="pl.44.11"></a><var>44.11</var>associated with court-ordered counsel under section 
         <statute_ref>611.27</statute_ref>. Any retained amounts not <br />
         		<a id="pl.44.12"></a><var>44.12</var>used for reimbursement in a year shall be included in the next distribution of county <br />
         		<a id="pl.44.13"></a><var>44.13</var>need aid that is certified to the county auditors for the purpose of property tax reduction <br />
         		<a id="pl.44.14"></a><var>44.14</var>for the next taxes payable year.<br />
         		<a id="pl.44.15"></a><var>44.15</var>&#160;&#160;&#160;&#160;(b) For aids payable in 2014 and thereafter 2016, the total aid under section <br />
         		
         <statute_ref><a id="pl.44.16"></a><var>44.16</var>477A.0124, subdivision 4
         </statute_ref>, is $104,909,575. For aids payable in 2017 and thereafter, <br />
         		<a id="pl.44.17"></a><var>44.17</var>the total aid payable under section 477A.0124, subdivision 4, is $109,909,575. The <br />
         		<a id="pl.44.18"></a><var>44.18</var>commissioner of revenue shall transfer to the commissioner of management and budget <br />
         		<a id="pl.44.19"></a><var>44.19</var>$207,000 annually for the cost of preparation of local impact notes as required by section <br />
         		
         <statute_ref><a id="pl.44.20"></a><var>44.20</var>3.987
         </statute_ref>, and other local government activities. The commissioner of revenue shall transfer <br />
         		<a id="pl.44.21"></a><var>44.21</var>to the commissioner of education $7,000 annually for the cost of preparation of local <br />
         		<a id="pl.44.22"></a><var>44.22</var>impact notes for school districts as required by section 
         <statute_ref>3.987</statute_ref>. The commissioner of <br />
         		<a id="pl.44.23"></a><var>44.23</var>revenue shall deduct the amounts transferred under this paragraph from the appropriation <br />
         		<a id="pl.44.24"></a><var>44.24</var>under this paragraph. The amounts transferred are appropriated to the commissioner of <br />
         		<a id="pl.44.25"></a><var>44.25</var>management and budget and the commissioner of education respectively.<br />
         		<a id="pl.44.26"></a><var>44.26</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.2.14.0"></a><a id="pl.44.27"></a><var>44.27</var>&#160;&#160;&#160;&#160;Sec. 14. <b>[477A.09] MAXIMUM EFFORT LOAN AID.</b><br />
         		<a id="pl.44.28"></a><var>44.28</var>For fiscal years 2018 through 2022, each school district with a maximum effort loan <br />
         		<a id="pl.44.29"></a><var>44.29</var>under sections 126C.61 to 126C.72 outstanding as of June 30, 2016, is eligible for an aid <br />
         		<a id="pl.44.30"></a><var>44.30</var>payment equal to one-fifth of the amount of interest that was paid on the loan between <br />
         		<a id="pl.44.31"></a><var>44.31</var>December 1, 1997, and June 30, 2016. Aid payments under this section must be used to <br />
         		<a id="pl.44.32"></a><var>44.32</var>reduce property taxes levied on net tax capacity within the district. Aid under this section <br />
         		<a id="pl.44.33"></a><var>44.33</var>must be paid in fiscal years 2018 through 2022, in the manner provided under section <br />
         		<a id="pl.44.34"></a><var>44.34</var>127A.45, subdivisions 9 and 13. An amount sufficient to make aid payments under this <br />
         		<a id="pl.44.35"></a><var>44.35</var>section is annually appropriated from the general fund to the commissioner of education.<br />
         		<a id="pl.45.1"></a><var>45.1</var><b>EFFECTIVE DATE.</b>This section is effective for fiscal years 2018 and thereafter.<br />
         		<br />
         		<a id="bill.2.15.0"></a><a id="pl.45.2"></a><var>45.2</var>&#160;&#160;&#160;&#160;Sec. 15. <b>[477A.21] RIPARIAN PROTECTION AID.</b><br />
         		<a id="pl.45.3"></a><var>45.3</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> (a) When used in this section, the following terms have <br />
         		<a id="pl.45.4"></a><var>45.4</var>the meanings given them in this subdivision.<br />
         		<a id="pl.45.5"></a><var>45.5</var>(b) "Public water basins" has the meaning provided in section 103G.005, subdivision <br />
         		<a id="pl.45.6"></a><var>45.6</var>15, clauses (1) to (8) and (11).<br />
         		<a id="pl.45.7"></a><var>45.7</var>(c) "Public watercourses" has the meaning provided in section 103G.005, <br />
         		<a id="pl.45.8"></a><var>45.8</var>subdivision 15, clauses (9) and (10).<br />
         		<a id="pl.45.9"></a><var>45.9</var>&#160;&#160;&#160;&#160;Subd. 2.  <b>Certification. </b> The Board of Water and Soil Resources must certify to the <br />
         		<a id="pl.45.10"></a><var>45.10</var>commissioner of revenue by July 1 of each year which counties and watershed districts <br />
         		<a id="pl.45.11"></a><var>45.11</var>have affirmed their jurisdiction under section 103F.48, subdivision 7, paragraph (b), and <br />
         		<a id="pl.45.12"></a><var>45.12</var>the proportion of each county's land area that is contained in each watershed district <br />
         		<a id="pl.45.13"></a><var>45.13</var>within the county. On or before July 1 of each year, the commissioner of natural resources <br />
         		<a id="pl.45.14"></a><var>45.14</var>shall certify to the commissioner of revenue the statewide and countywide total of miles of <br />
         		<a id="pl.45.15"></a><var>45.15</var>shoreline of public waters basins, the number of centerline miles of public watercourses, <br />
         		<a id="pl.45.16"></a><var>45.16</var>and the miles of public drainage system ditches. <br />
         		<a id="pl.45.17"></a><var>45.17</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Distribution.</b> (a) A county that is certified under subdivision 2 or that <br />
         		<a id="pl.45.18"></a><var>45.18</var>portion of a county containing a watershed district certified under subdivision 2 is eligible <br />
         		<a id="pl.45.19"></a><var>45.19</var>to receive aid under this section to enforce and implement the riparian protection and water <br />
         		<a id="pl.45.20"></a><var>45.20</var>quality practices under section 103F.48. The commissioner shall calculate a preliminary <br />
         		<a id="pl.45.21"></a><var>45.21</var>aid for all counties that shall equal: (1) each county's share of the total number of acres <br />
         		<a id="pl.45.22"></a><var>45.22</var>in the state classified as class 2a under section 273.13, subdivision 23, divided by two; <br />
         		<a id="pl.45.23"></a><var>45.23</var>plus (2) each county's share of the number of miles of shoreline of public water basins, <br />
         		<a id="pl.45.24"></a><var>45.24</var>each county's share of the number of centerline miles of public watercourses, and each <br />
         		<a id="pl.45.25"></a><var>45.25</var>county's share of the number of miles of public drainage system ditches established under <br />
         		<a id="pl.45.26"></a><var>45.26</var>chapter 103E, divided by two; multiplied by (3) $10,000,000.<br />
         		<a id="pl.45.27"></a><var>45.27</var>(b) Aid to a county shall not be greater than $200,000 or less than $45,000. If the <br />
         		<a id="pl.45.28"></a><var>45.28</var>sum of the preliminary aids payable to counties under paragraph (a) is greater or less than <br />
         		<a id="pl.45.29"></a><var>45.29</var>the appropriation under subdivision 5, the commissioner of revenue shall calculate the <br />
         		<a id="pl.45.30"></a><var>45.30</var>percentage adjustment necessary so that the total of the aid under paragraph (a) equals the <br />
         		<a id="pl.45.31"></a><var>45.31</var>total amount available for aid under subdivision 5.<br />
         		<a id="pl.45.32"></a><var>45.32</var>(c) If only a portion of a county is certified as eligible to receive aid under subdivision <br />
         		<a id="pl.45.33"></a><var>45.33</var>2, the aid otherwise payable to that county under this section shall be multiplied by a <br />
         		<a id="pl.45.34"></a><var>45.34</var>fraction, the numerator of which is the area of the certified watershed district contained <br />
         		<a id="pl.45.35"></a><var>45.35</var>within the county and the denominator of which is the total area of the county. <br />
         		<a id="pl.46.1"></a><var>46.1</var>(d) Any aid that would otherwise be paid to a county or portion of a county that is <br />
         		<a id="pl.46.2"></a><var>46.2</var>not certified under subdivision 2 shall be paid to the Board of Water and Soil Resources <br />
         		<a id="pl.46.3"></a><var>46.3</var>for the purpose of enforcing and implementing the riparian protection and water quality <br />
         		<a id="pl.46.4"></a><var>46.4</var>practices under section 103F.48.<br />
         		<a id="pl.46.5"></a><var>46.5</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Payments.</b> The commissioner of revenue must compute the amount of <br />
         		<a id="pl.46.6"></a><var>46.6</var>riparian protection aid payable to each eligible county and to the Board of Water and Soil <br />
         		<a id="pl.46.7"></a><var>46.7</var>Resources under this section. On or before August 1 of each year, the commissioner shall <br />
         		<a id="pl.46.8"></a><var>46.8</var>certify the amount to be paid to each county in the following year. The commissioner shall <br />
         		<a id="pl.46.9"></a><var>46.9</var>pay riparian protection aid to counties and the Board of Water and Soil Resources in the <br />
         		<a id="pl.46.10"></a><var>46.10</var>same manner and at the same time as aid payments under section 477A.015.<br />
         		<a id="pl.46.11"></a><var>46.11</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Appropriation.</b> $10,000,000 for aids payable in 2017 and each year <br />
         		<a id="pl.46.12"></a><var>46.12</var>thereafter is appropriated from the general fund to the commissioner of revenue to make <br />
         		<a id="pl.46.13"></a><var>46.13</var>the payments required under this section.<br />
         		<a id="pl.46.14"></a><var>46.14</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2017 <br />
         		<a id="pl.46.15"></a><var>46.15</var>and thereafter.<br />
         		<br />
         		<a id="bill.2.16.0"></a><a id="pl.46.16"></a><var>46.16</var>&#160;&#160;&#160;&#160;Sec. 16. Laws 2001, First Special Session chapter 5, article 3, section 86, is amended <br />
         		<a id="pl.46.17"></a><var>46.17</var>to read:<br />
         		<a id="pl.46.18"></a><var>46.18</var>&#160;&#160;&#160;&#160;Sec. 86. <b>RED RIVER WATERSHED MANAGEMENT BOARD; PAYMENT </b><br />
         		<a id="pl.46.19"></a><var>46.19</var><b>IN LIEU OF TAXES.</b><br />
         		<a id="pl.46.20"></a><var>46.20</var>&#160;&#160;&#160;&#160;(a) The Red River watershed management board may spend money from its general <br />
         		<a id="pl.46.21"></a><var>46.21</var>fund to compensate counties and townships for lost tax revenue from land that becomes <br />
         		<a id="pl.46.22"></a><var>46.22</var>tax exempt after it is acquired by the board or a member watershed district for flood <br />
         		<a id="pl.46.23"></a><var>46.23</var>damage reduction project. The amount that may be paid under this section to a county <br />
         		<a id="pl.46.24"></a><var>46.24</var>or township must not exceed the tax that was payable to that taxing jurisdiction on the <br />
         		<a id="pl.46.25"></a><var>46.25</var>land in the last taxes payable year before the land became exempt due to the acquisition, <br />
         		<a id="pl.46.26"></a><var>46.26</var>not to exceed $4 $5.133 per acre, multiplied by 20. This total amount may be paid in one <br />
         		<a id="pl.46.27"></a><var>46.27</var>payment, or in equal annual installments over a period that does not exceed 20 years. A <br />
         		<a id="pl.46.28"></a><var>46.28</var>member watershed district of the Red River management board may spend money from its <br />
         		<a id="pl.46.29"></a><var>46.29</var>construction fund for the purposes described in this section.<br />
         		<a id="pl.46.30"></a><var>46.30</var>&#160;&#160;&#160;&#160;(b) For the purposes of this section, "Red River watershed management board" <br />
         		<a id="pl.46.31"></a><var>46.31</var>refers to the board established by Laws 1976, chapter 162, section 1, as amended by Laws <br />
         		<a id="pl.46.32"></a><var>46.32</var>1982, chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special <br />
         		<a id="pl.46.33"></a><var>46.33</var>Session chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws <br />
         		<a id="pl.46.34"></a><var>46.34</var>1998, chapter 389, article 3, section 29.<br />
         		<a id="pl.47.1"></a><var>47.1</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br />
         		<a id="pl.47.2"></a><var>47.2</var>2016 and thereafter.<br />
         		<br />
         		<a id="bill.2.17.0"></a><a id="pl.47.3"></a><var>47.3</var>&#160;&#160;&#160;&#160;Sec. 17. <b>2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.</b><br />
         		<a id="pl.47.4"></a><var>47.4</var>Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of <br />
         		<a id="pl.47.5"></a><var>47.5</var>Oslo shall receive the portion of its aid payment for calendar year 2013 under Minnesota <br />
         		<a id="pl.47.6"></a><var>47.6</var>Statutes, section 477A.013, that was withheld under Minnesota Statutes, section <br />
         		<a id="pl.47.7"></a><var>47.7</var>477A.017, subdivision 3, provided that the state auditor certifies to the commissioner <br />
         		<a id="pl.47.8"></a><var>47.8</var>of revenue that it received audited financial statements from the city for calendar year <br />
         		<a id="pl.47.9"></a><var>47.9</var>2012 by December 31, 2013. The commissioner of revenue shall make a payment of <br />
         		<a id="pl.47.10"></a><var>47.10</var>$37,473.50 with the first payment of aids under Minnesota Statutes, section 477A.015. <br />
         		<a id="pl.47.11"></a><var>47.11</var>$37,473.50 is appropriated from the general fund to the commissioner of revenue in fiscal <br />
         		<a id="pl.47.12"></a><var>47.12</var>year 2017 to make this payment.<br />
         		<a id="pl.47.13"></a><var>47.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.18.0"></a><a id="pl.47.14"></a><var>47.14</var>&#160;&#160;&#160;&#160;Sec. 18. <b>2014 AID PENALTY FORGIVENESS.</b><br />
         		<a id="pl.47.15"></a><var>47.15</var>(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities <br />
         		<a id="pl.47.16"></a><var>47.16</var>of Dundee, Jeffers, and Woodstock shall receive all of its calendar year 2014 aid payment <br />
         		<a id="pl.47.17"></a><var>47.17</var>that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided <br />
         		<a id="pl.47.18"></a><var>47.18</var>that the state auditor certifies to the commissioner of revenue that the city complied with <br />
         		<a id="pl.47.19"></a><var>47.19</var>all reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for <br />
         		<a id="pl.47.20"></a><var>47.20</var>calendar years 2013 and 2014 by June 1, 2015.<br />
         		<a id="pl.47.21"></a><var>47.21</var>(b) The commissioner of revenue shall make payment to each city no later than June <br />
         		<a id="pl.47.22"></a><var>47.22</var>30, 2016. Up to $101,570 is appropriated from the general fund to the commissioner of <br />
         		<a id="pl.47.23"></a><var>47.23</var>revenue in fiscal year 2017 to make the payments under this section.<br />
         		<a id="pl.47.24"></a><var>47.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.19.0"></a><a id="pl.47.25"></a><var>47.25</var>&#160;&#160;&#160;&#160;Sec. 19. <b>BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.</b><br />
         		<a id="pl.47.26"></a><var>47.26</var>In the first aid payable year in which a city that incorporated on October 13, 2015, <br />
         		<a id="pl.47.27"></a><var>47.27</var>qualifies for aid under Minnesota Statutes, section 477A.013, subdivision 8, the city's <br />
         		<a id="pl.47.28"></a><var>47.28</var>formula aid in the previous year shall be deemed to equal $115 multiplied by its population.<br />
         		<a id="pl.47.29"></a><var>47.29</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.2.20.0"></a><a id="pl.47.30"></a><var>47.30</var>&#160;&#160;&#160;&#160;Sec. 20. <b> REPEALER.</b><br />
         		<a id="pl.47.31"></a><var>47.31</var>Minnesota Statutes 2014, section 477A.20, is repealed.<br />
         		<a id="pl.48.1"></a><var>48.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.0.0"></a><div class="xtend_ce"><a id="pl.48.2"></a><var>48.2</var><b>ARTICLE 3</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.48.3"></a><var>48.3</var><b>INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES</b><br />
            		
         </div><br />
         		<a id="bill.3.1.0"></a><a id="pl.48.4"></a><var>48.4</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2014, section 136A.129, subdivision 3, is amended to <br />
         		<a id="pl.48.5"></a><var>48.5</var>read:<br />
         		<a id="pl.48.6"></a><var>48.6</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Program components.</b> (a) An intern must be an eligible student who has <br />
         		<a id="pl.48.7"></a><var>48.7</var>been admitted to a major program that is related to the intern experience as determined <br />
         		<a id="pl.48.8"></a><var>48.8</var>by the eligible institution.<br />
         		<a id="pl.48.9"></a><var>48.9</var>(b) To participate in the program, an eligible institution must:<br />
         		<a id="pl.48.10"></a><var>48.10</var>(1) enter into written agreements with eligible employers to provide internships that <br />
         		<a id="pl.48.11"></a><var>48.11</var>are at least eight weeks long and located in greater Minnesota; and<br />
         		<a id="pl.48.12"></a><var>48.12</var>(2) provide academic credit for the successful completion of the internship or ensure <br />
         		<a id="pl.48.13"></a><var>48.13</var>that it fulfills requirements necessary to complete a vocational technical education program.<br />
         		<a id="pl.48.14"></a><var>48.14</var>(c) To participate in the program, an eligible employer must enter into a written <br />
         		<a id="pl.48.15"></a><var>48.15</var>agreement with an eligible institution specifying that the intern:<br />
         		<a id="pl.48.16"></a><var>48.16</var>(1) would not have been hired without the tax credit described in subdivision 4;<br />
         		<a id="pl.48.17"></a><var>48.17</var>(2) did not work for the employer in the same or a similar job prior to entering <br />
         		<a id="pl.48.18"></a><var>48.18</var>the agreement;<br />
         		<a id="pl.48.19"></a><var>48.19</var>(3) (2) does not replace an existing employee;<br />
         		<a id="pl.48.20"></a><var>48.20</var>(4) (3) has not previously participated in the program;<br />
         		<a id="pl.48.21"></a><var>48.21</var>(5) (4) will be employed at a location in greater Minnesota;<br />
         		<a id="pl.48.22"></a><var>48.22</var>(6) (5) will be paid at least minimum wage for a minimum of 16 hours per week <br />
         		<a id="pl.48.23"></a><var>48.23</var>for a period of at least eight weeks; and<br />
         		<a id="pl.48.24"></a><var>48.24</var>(7) (6) will be supervised and evaluated by the employer.<br />
         		<a id="pl.48.25"></a><var>48.25</var>(d) The written agreement between the eligible institution and the eligible employer <br />
         		<a id="pl.48.26"></a><var>48.26</var>must certify a credit amount to the employer, not to exceed $2,000 per intern. The total <br />
         		<a id="pl.48.27"></a><var>48.27</var>dollar amount of credits that an eligible institution certifies to eligible employers in a <br />
         		<a id="pl.48.28"></a><var>48.28</var>calendar year may not exceed the amount of its allocation under subdivision 4.<br />
         		<a id="pl.48.29"></a><var>48.29</var>(e) Participating eligible institutions and eligible employers must report annually to <br />
         		<a id="pl.48.30"></a><var>48.30</var>the office. The report must include at least the following:<br />
         		<a id="pl.48.31"></a><var>48.31</var>(1) the number of interns hired;<br />
         		<a id="pl.48.32"></a><var>48.32</var>(2) the number of hours and weeks worked by interns; and<br />
         		<a id="pl.48.33"></a><var>48.33</var>(3) the compensation paid to interns.<br />
         		<a id="pl.48.34"></a><var>48.34</var>(f) An internship required to complete an academic program does not qualify for the <br />
         		<a id="pl.48.35"></a><var>48.35</var>greater Minnesota internship program under this section.<br />
         		<a id="pl.49.1"></a><var>49.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.49.2"></a><var>49.2</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.2.0"></a><a id="pl.49.3"></a><var>49.3</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2015 Supplement, section 289A.02, subdivision 7, is <br />
         		<a id="pl.49.4"></a><var>49.4</var>amended to read:<br />
         		<a id="pl.49.5"></a><var>49.5</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br />
         		<a id="pl.49.6"></a><var>49.6</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through December <br />
         		<a id="pl.49.7"></a><var>49.7</var>31, 2014 2015.<br />
         		<a id="pl.49.8"></a><var>49.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.3.0"></a><a id="pl.49.9"></a><var>49.9</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read:<br />
         		<a id="pl.49.10"></a><var>49.10</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Resident.</b> (a) The term "resident" means any individual domiciled <br />
         		<a id="pl.49.11"></a><var>49.11</var>in Minnesota, except that an individual is not a "resident" for the period of time that <br />
         		<a id="pl.49.12"></a><var>49.12</var>the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal <br />
         		<a id="pl.49.13"></a><var>49.13</var>Revenue Code, if the qualified individual notifies the county within three months of <br />
         		<a id="pl.49.14"></a><var>49.14</var>moving out of the country that homestead status be revoked for the Minnesota residence <br />
         		<a id="pl.49.15"></a><var>49.15</var>of the qualified individual, and the property is not classified as a homestead while the <br />
         		<a id="pl.49.16"></a><var>49.16</var>individual remains a qualified individual.<br />
         		<a id="pl.49.17"></a><var>49.17</var>(b) "Resident" also means any individual domiciled outside the state who maintains <br />
         		<a id="pl.49.18"></a><var>49.18</var>a place of abode in the state and spends in the aggregate more than one-half of the tax <br />
         		<a id="pl.49.19"></a><var>49.19</var>year in Minnesota, unless:<br />
         		<a id="pl.49.20"></a><var>49.20</var>(1) the individual or the spouse of the individual is in the armed forces of the United <br />
         		<a id="pl.49.21"></a><var>49.21</var>States; or<br />
         		<a id="pl.49.22"></a><var>49.22</var>(2) the individual is covered under the reciprocity provisions in section 
         <statute_ref>290.081</statute_ref>.<br />
         		<a id="pl.49.23"></a><var>49.23</var>For purposes of this subdivision, presence within the state for any part of a calendar <br />
         		<a id="pl.49.24"></a><var>49.24</var>day constitutes a day spent in the state. A day does not qualify as a Minnesota day if <br />
         		<a id="pl.49.25"></a><var>49.25</var>the taxpayer traveled from a place outside of Minnesota primarily for and essential to <br />
         		<a id="pl.49.26"></a><var>49.26</var>obtaining medical care, as defined in Internal Revenue Code, section 213(d)(1)(A), in <br />
         		<a id="pl.49.27"></a><var>49.27</var>Minnesota for the taxpayer, spouse, or a dependent of the taxpayer and the travel expense <br />
         		<a id="pl.49.28"></a><var>49.28</var>is allowed under Internal Revenue Code, section 213(d)(1)(B), and is claimed by the <br />
         		<a id="pl.49.29"></a><var>49.29</var>taxpayer as a deductible expense. Individuals shall keep adequate records to substantiate <br />
         		<a id="pl.49.30"></a><var>49.30</var>the days spent outside the state.<br />
         		<a id="pl.49.31"></a><var>49.31</var>The term "abode" means a dwelling maintained by an individual, whether or not <br />
         		<a id="pl.49.32"></a><var>49.32</var>owned by the individual and whether or not occupied by the individual, and includes a <br />
         		<a id="pl.49.33"></a><var>49.33</var>dwelling place owned or leased by the individual's spouse.<br />
         		<a id="pl.50.1"></a><var>50.1</var>(c) In determining where an individual is domiciled, neither the commissioner nor <br />
         		<a id="pl.50.2"></a><var>50.2</var>any court shall consider: <br />
         		<a id="pl.50.3"></a><var>50.3</var>(1) charitable contributions made by an the individual within or without the state in <br />
         		<a id="pl.50.4"></a><var>50.4</var>determining if the individual is domiciled in Minnesota.;<br />
         		<a id="pl.50.5"></a><var>50.5</var>(2) the location of the individual's attorney, certified public accountant, or financial <br />
         		<a id="pl.50.6"></a><var>50.6</var>adviser; or<br />
         		<a id="pl.50.7"></a><var>50.7</var>(3) the place of business of a financial institution at which the individual applies for <br />
         		<a id="pl.50.8"></a><var>50.8</var>any new type of credit or at which the individual opens or maintains any type of account.<br />
         		<a id="pl.50.9"></a><var>50.9</var>(d) For purposes of this subdivision, the following terms have the meanings given <br />
         		<a id="pl.50.10"></a><var>50.10</var>them:<br />
         		<a id="pl.50.11"></a><var>50.11</var>(1) "financial adviser" means:<br />
         		<a id="pl.50.12"></a><var>50.12</var>(i) an individual or business entity engaged in business as a certified financial <br />
         		<a id="pl.50.13"></a><var>50.13</var>planner, registered investment adviser, licensed insurance producer or agent, or a <br />
         		<a id="pl.50.14"></a><var>50.14</var>registered securities broker-dealer representative; or<br />
         		<a id="pl.50.15"></a><var>50.15</var>(ii) a financial institution providing services related to trust or estate administration, <br />
         		<a id="pl.50.16"></a><var>50.16</var>investment management, or financial planning; and<br />
         		<a id="pl.50.17"></a><var>50.17</var>(2) "financial institution" means a financial institution as defined in section 47.015, <br />
         		<a id="pl.50.18"></a><var>50.18</var>subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer <br />
         		<a id="pl.50.19"></a><var>50.19</var>under the Securities and Exchange Act of 1934.<br />
         		<a id="pl.50.20"></a><var>50.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.50.21"></a><var>50.21</var>December 31, 2015, except the amendment to paragraph (b) is effective for taxable years <br />
         		<a id="pl.50.22"></a><var>50.22</var>beginning after December 31, 2016.<br />
         		<br />
         		<a id="bill.3.4.0"></a><a id="pl.50.23"></a><var>50.23</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 19, is <br />
         		<a id="pl.50.24"></a><var>50.24</var>amended to read:<br />
         		<a id="pl.50.25"></a><var>50.25</var>&#160;&#160;&#160;&#160;Subd. 19. <b>Net income.</b> The term "net income" means the federal taxable income, <br />
         		<a id="pl.50.26"></a><var>50.26</var>as defined in section 63 of the Internal Revenue Code of 1986, as amended through the <br />
         		<a id="pl.50.27"></a><var>50.27</var>date named in this subdivision, incorporating the federal effective dates of changes to the <br />
         		<a id="pl.50.28"></a><var>50.28</var>Internal Revenue Code and any elections made by the taxpayer in accordance with the <br />
         		<a id="pl.50.29"></a><var>50.29</var>Internal Revenue Code in determining federal taxable income for federal income tax <br />
         		<a id="pl.50.30"></a><var>50.30</var>purposes, and with the modifications provided in subdivisions 19a to 19f.<br />
         		<a id="pl.50.31"></a><var>50.31</var>&#160;&#160;&#160;&#160;In the case of a regulated investment company or a fund thereof, as defined in section <br />
         		<a id="pl.50.32"></a><var>50.32</var>851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment <br />
         		<a id="pl.50.33"></a><var>50.33</var>company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, <br />
         		<a id="pl.50.34"></a><var>50.34</var>except that:<br />
         		<a id="pl.51.1"></a><var>51.1</var>&#160;&#160;&#160;&#160;(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal <br />
         		<a id="pl.51.2"></a><var>51.2</var>Revenue Code does not apply;<br />
         		<a id="pl.51.3"></a><var>51.3</var>&#160;&#160;&#160;&#160;(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal <br />
         		<a id="pl.51.4"></a><var>51.4</var>Revenue Code must be applied by allowing a deduction for capital gain dividends and <br />
         		<a id="pl.51.5"></a><var>51.5</var>exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal <br />
         		<a id="pl.51.6"></a><var>51.6</var>Revenue Code; and<br />
         		<a id="pl.51.7"></a><var>51.7</var>&#160;&#160;&#160;&#160;(3) the deduction for dividends paid must also be applied in the amount of any <br />
         		<a id="pl.51.8"></a><var>51.8</var>undistributed capital gains which the regulated investment company elects to have treated <br />
         		<a id="pl.51.9"></a><var>51.9</var>as provided in section 852(b)(3)(D) of the Internal Revenue Code.<br />
         		<a id="pl.51.10"></a><var>51.10</var>&#160;&#160;&#160;&#160;The net income of a real estate investment trust as defined and limited by section <br />
         		<a id="pl.51.11"></a><var>51.11</var>856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust <br />
         		<a id="pl.51.12"></a><var>51.12</var>taxable income as defined in section 857(b)(2) of the Internal Revenue Code.<br />
         		<a id="pl.51.13"></a><var>51.13</var>&#160;&#160;&#160;&#160;The net income of a designated settlement fund as defined in section 468B(d) of <br />
         		<a id="pl.51.14"></a><var>51.14</var>the Internal Revenue Code means the gross income as defined in section 468B(b) of the <br />
         		<a id="pl.51.15"></a><var>51.15</var>Internal Revenue Code.<br />
         		<a id="pl.51.16"></a><var>51.16</var>&#160;&#160;&#160;&#160;The Internal Revenue Code of 1986, as amended through December 31, 2014 2015, <br />
         		<a id="pl.51.17"></a><var>51.17</var>shall be in effect for taxable years beginning after December 31, 1996.<br />
         		<a id="pl.51.18"></a><var>51.18</var>&#160;&#160;&#160;&#160;Except as otherwise provided, references to the Internal Revenue Code in <br />
         		<a id="pl.51.19"></a><var>51.19</var>subdivisions 19 to 19f mean the code in effect for purposes of determining net income for <br />
         		<a id="pl.51.20"></a><var>51.20</var>the applicable year.<br />
         		<a id="pl.51.21"></a><var>51.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br />
         		<a id="pl.51.22"></a><var>51.22</var>except the changes incorporated by federal changes are effective retroactively at the same <br />
         		<a id="pl.51.23"></a><var>51.23</var>time as the changes were effective for federal purposes.<br />
         		<br />
         		<a id="bill.3.5.0"></a><a id="pl.51.24"></a><var>51.24</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read:<br />
         		<a id="pl.51.25"></a><var>51.25</var>&#160;&#160;&#160;&#160;Subd. 19a. <b>Additions to federal taxable income.</b> For individuals, estates, and <br />
         		<a id="pl.51.26"></a><var>51.26</var>trusts, there shall be added to federal taxable income:<br />
         		<a id="pl.51.27"></a><var>51.27</var>&#160;&#160;&#160;&#160;(1)(i) interest income on obligations of any state other than Minnesota or a political <br />
         		<a id="pl.51.28"></a><var>51.28</var>or governmental subdivision, municipality, or governmental agency or instrumentality <br />
         		<a id="pl.51.29"></a><var>51.29</var>of any state other than Minnesota exempt from federal income taxes under the Internal <br />
         		<a id="pl.51.30"></a><var>51.30</var>Revenue Code or any other federal statute; and<br />
         		<a id="pl.51.31"></a><var>51.31</var>&#160;&#160;&#160;&#160;(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue <br />
         		<a id="pl.51.32"></a><var>51.32</var>Code, except:<br />
         		<a id="pl.51.33"></a><var>51.33</var>(A) the portion of the exempt-interest dividends exempt from state taxation under <br />
         		<a id="pl.51.34"></a><var>51.34</var>the laws of the United States; and<br />
         		<a id="pl.52.1"></a><var>52.1</var>(B) the portion of the exempt-interest dividends derived from interest income <br />
         		<a id="pl.52.2"></a><var>52.2</var>on obligations of the state of Minnesota or its political or governmental subdivisions, <br />
         		<a id="pl.52.3"></a><var>52.3</var>municipalities, governmental agencies or instrumentalities, but only if the portion of the <br />
         		<a id="pl.52.4"></a><var>52.4</var>exempt-interest dividends from such Minnesota sources paid to all shareholders represents <br />
         		<a id="pl.52.5"></a><var>52.5</var>95 percent or more of the exempt-interest dividends, including any dividends exempt <br />
         		<a id="pl.52.6"></a><var>52.6</var>under subitem (A), that are paid by the regulated investment company as defined in section <br />
         		<a id="pl.52.7"></a><var>52.7</var>851(a) of the Internal Revenue Code, or the fund of the regulated investment company as <br />
         		<a id="pl.52.8"></a><var>52.8</var>defined in section 851(g) of the Internal Revenue Code, making the payment; and<br />
         		<a id="pl.52.9"></a><var>52.9</var>&#160;&#160;&#160;&#160;(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal <br />
         		<a id="pl.52.10"></a><var>52.10</var>government described in section 7871(c) of the Internal Revenue Code shall be treated as <br />
         		<a id="pl.52.11"></a><var>52.11</var>interest income on obligations of the state in which the tribe is located;<br />
         		<a id="pl.52.12"></a><var>52.12</var>&#160;&#160;&#160;&#160;(2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or <br />
         		<a id="pl.52.13"></a><var>52.13</var>accrued within the taxable year under this chapter and the amount of taxes based on net <br />
         		<a id="pl.52.14"></a><var>52.14</var>income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or <br />
         		<a id="pl.52.15"></a><var>52.15</var>to any province or territory of Canada, to the extent allowed as a deduction under section <br />
         		<a id="pl.52.16"></a><var>52.16</var>63(d) of the Internal Revenue Code, but the addition may not be more than the amount <br />
         		<a id="pl.52.17"></a><var>52.17</var>by which the state itemized deduction exceeds the amount of the standard deduction as <br />
         		<a id="pl.52.18"></a><var>52.18</var>defined in section 63(c) of the Internal Revenue Code, minus any addition that would have <br />
         		<a id="pl.52.19"></a><var>52.19</var>been required under clause (17) if the taxpayer had claimed the standard deduction. For <br />
         		<a id="pl.52.20"></a><var>52.20</var>the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are <br />
         		<a id="pl.52.21"></a><var>52.21</var>the last itemized deductions disallowed under clause (15);<br />
         		<a id="pl.52.22"></a><var>52.22</var>&#160;&#160;&#160;&#160;(3) the capital gain amount of a lump-sum distribution to which the special tax under <br />
         		<a id="pl.52.23"></a><var>52.23</var>section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;<br />
         		<a id="pl.52.24"></a><var>52.24</var>&#160;&#160;&#160;&#160;(4) the amount of income taxes paid or accrued within the taxable year under this <br />
         		<a id="pl.52.25"></a><var>52.25</var>chapter and taxes based on net income paid to any other state or any province or territory <br />
         		<a id="pl.52.26"></a><var>52.26</var>of Canada, to the extent allowed as a deduction in determining federal adjusted gross <br />
         		<a id="pl.52.27"></a><var>52.27</var>income. For the purpose of this paragraph, income taxes do not include the taxes imposed <br />
         		<a id="pl.52.28"></a><var>52.28</var>by sections 
         <statute_ref>290.0922, subdivision 1</statute_ref>, paragraph (b), 
         <statute_ref>290.9727</statute_ref>, 
         <statute_ref>290.9728</statute_ref>, and 
         <statute_ref>290.9729</statute_ref>;<br />
         		<a id="pl.52.29"></a><var>52.29</var>&#160;&#160;&#160;&#160;(5) the amount of expense, interest, or taxes disallowed pursuant to section 
         <statute_ref>290.10 <br />
            		
         </statute_ref><a id="pl.52.30"></a><var>52.30</var>other than expenses or interest used in computing net interest income for the subtraction <br />
         		<a id="pl.52.31"></a><var>52.31</var>allowed under subdivision 19b, clause (1);<br />
         		<a id="pl.52.32"></a><var>52.32</var>&#160;&#160;&#160;&#160;(6) the amount of a partner's pro rata share of net income which does not flow <br />
         		<a id="pl.52.33"></a><var>52.33</var>through to the partner because the partnership elected to pay the tax on the income under <br />
         		<a id="pl.52.34"></a><var>52.34</var>section 6242(a)(2) of the Internal Revenue Code;<br />
         		<a id="pl.52.35"></a><var>52.35</var>&#160;&#160;&#160;&#160;(7) 80 percent of the depreciation deduction allowed under section 168(k) of the <br />
         		<a id="pl.52.36"></a><var>52.36</var>Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that <br />
         		<a id="pl.53.1"></a><var>53.1</var>in the taxable year generates a deduction for depreciation under section 168(k) and the <br />
         		<a id="pl.53.2"></a><var>53.2</var>activity generates a loss for the taxable year that the taxpayer is not allowed to claim for <br />
         		<a id="pl.53.3"></a><var>53.3</var>the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is <br />
         		<a id="pl.53.4"></a><var>53.4</var>limited to excess of the depreciation claimed by the activity under section 168(k) over the <br />
         		<a id="pl.53.5"></a><var>53.5</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br />
         		<a id="pl.53.6"></a><var>53.6</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br />
         		<a id="pl.53.7"></a><var>53.7</var>under section 168(k) is allowed;<br />
         		<a id="pl.53.8"></a><var>53.8</var>&#160;&#160;&#160;&#160;(8) 80 percent of the amount by which the deduction allowed by section 179 of the <br />
         		<a id="pl.53.9"></a><var>53.9</var>Internal Revenue Code exceeds the deduction allowable by under the dollar limits of <br />
         		<a id="pl.53.10"></a><var>53.10</var>section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;<br />
         		<a id="pl.53.11"></a><var>53.11</var>&#160;&#160;&#160;&#160;(9) to the extent deducted in computing federal taxable income, the amount of the <br />
         		<a id="pl.53.12"></a><var>53.12</var>deduction allowable under section 199 of the Internal Revenue Code;<br />
         		<a id="pl.53.13"></a><var>53.13</var>&#160;&#160;&#160;&#160;(10) the amount of expenses disallowed under section 290.10, subdivision 2;<br />
         		<a id="pl.53.14"></a><var>53.14</var>&#160;&#160;&#160;&#160;(11) for taxable years beginning before January 1, 2010, the amount deducted for <br />
         		<a id="pl.53.15"></a><var>53.15</var>qualified tuition and related expenses under section 222 of the Internal Revenue Code, to <br />
         		<a id="pl.53.16"></a><var>53.16</var>the extent deducted from gross income;<br />
         		<a id="pl.53.17"></a><var>53.17</var>&#160;&#160;&#160;&#160;(12) for taxable years beginning before January 1, 2010, the amount deducted for <br />
         		<a id="pl.53.18"></a><var>53.18</var>certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) <br />
         		<a id="pl.53.19"></a><var>53.19</var>of the Internal Revenue Code, to the extent deducted from gross income;<br />
         		<a id="pl.53.20"></a><var>53.20</var>(13) discharge of indebtedness income resulting from reacquisition of business <br />
         		<a id="pl.53.21"></a><var>53.21</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code;<br />
         		<a id="pl.53.22"></a><var>53.22</var>(14) changes to federal taxable income attributable to a net operating loss that the <br />
         		<a id="pl.53.23"></a><var>53.23</var>taxpayer elected to carry back for more than two years for federal purposes but for which <br />
         		<a id="pl.53.24"></a><var>53.24</var>the losses can be carried back for only two years under section 
         <statute_ref>290.095, subdivision <br />
            		<a id="pl.53.25"></a><var>53.25</var>11
         </statute_ref>, paragraph (c);<br />
         		<a id="pl.53.26"></a><var>53.26</var>(15) the amount of disallowed itemized deductions, but the amount of disallowed <br />
         		<a id="pl.53.27"></a><var>53.27</var>itemized deductions plus the addition required under clause (2) may not be more than the <br />
         		<a id="pl.53.28"></a><var>53.28</var>amount by which the itemized deductions as allowed under section 63(d) of the Internal <br />
         		<a id="pl.53.29"></a><var>53.29</var>Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of <br />
         		<a id="pl.53.30"></a><var>53.30</var>the Internal Revenue Code, and reduced by any addition that would have been required <br />
         		<a id="pl.53.31"></a><var>53.31</var>under clause (17) if the taxpayer had claimed the standard deduction:<br />
         		<a id="pl.53.32"></a><var>53.32</var>(i) the amount of disallowed itemized deductions is equal to the lesser of:<br />
         		<a id="pl.53.33"></a><var>53.33</var>(A) three percent of the excess of the taxpayer's federal adjusted gross income <br />
         		<a id="pl.53.34"></a><var>53.34</var>over the applicable amount; or<br />
         		<a id="pl.53.35"></a><var>53.35</var>(B) 80 percent of the amount of the itemized deductions otherwise allowable to the <br />
         		<a id="pl.53.36"></a><var>53.36</var>taxpayer under the Internal Revenue Code for the taxable year;<br />
         		<a id="pl.54.1"></a><var>54.1</var>(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a <br />
         		<a id="pl.54.2"></a><var>54.2</var>married individual filing a separate return. Each dollar amount shall be increased by <br />
         		<a id="pl.54.3"></a><var>54.3</var>an amount equal to:<br />
         		<a id="pl.54.4"></a><var>54.4</var>(A) such dollar amount, multiplied by<br />
         		<a id="pl.54.5"></a><var>54.5</var>(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal <br />
         		<a id="pl.54.6"></a><var>54.6</var>Revenue Code for the calendar year in which the taxable year begins, by substituting <br />
         		<a id="pl.54.7"></a><var>54.7</var>"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;<br />
         		<a id="pl.54.8"></a><var>54.8</var>(iii) the term "itemized deductions" does not include:<br />
         		<a id="pl.54.9"></a><var>54.9</var>(A) the deduction for medical expenses under section 213 of the Internal Revenue <br />
         		<a id="pl.54.10"></a><var>54.10</var>Code;<br />
         		<a id="pl.54.11"></a><var>54.11</var>(B) any deduction for investment interest as defined in section 163(d) of the Internal <br />
         		<a id="pl.54.12"></a><var>54.12</var>Revenue Code; and<br />
         		<a id="pl.54.13"></a><var>54.13</var>(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or <br />
         		<a id="pl.54.14"></a><var>54.14</var>theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue <br />
         		<a id="pl.54.15"></a><var>54.15</var>Code or for losses described in section 165(d) of the Internal Revenue Code;<br />
         		<a id="pl.54.16"></a><var>54.16</var>(16) the amount of disallowed personal exemptions for taxpayers with federal <br />
         		<a id="pl.54.17"></a><var>54.17</var>adjusted gross income over the threshold amount:<br />
         		<a id="pl.54.18"></a><var>54.18</var>(i) the disallowed personal exemption amount is equal to the number of personal <br />
         		<a id="pl.54.19"></a><var>54.19</var>exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied <br />
         		<a id="pl.54.20"></a><var>54.20</var>by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the <br />
         		<a id="pl.54.21"></a><var>54.21</var>Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal <br />
         		<a id="pl.54.22"></a><var>54.22</var>Revenue Code, and by the applicable percentage;<br />
         		<a id="pl.54.23"></a><var>54.23</var>(ii) "applicable percentage" means two percentage points for each $2,500 (or <br />
         		<a id="pl.54.24"></a><var>54.24</var>fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable <br />
         		<a id="pl.54.25"></a><var>54.25</var>year exceeds the threshold amount. In the case of a married individual filing a separate <br />
         		<a id="pl.54.26"></a><var>54.26</var>return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In <br />
         		<a id="pl.54.27"></a><var>54.27</var>no event shall the applicable percentage exceed 100 percent;<br />
         		<a id="pl.54.28"></a><var>54.28</var>(iii) the term "threshold amount" means:<br />
         		<a id="pl.54.29"></a><var>54.29</var>(A) $150,000 in the case of a joint return or a surviving spouse;<br />
         		<a id="pl.54.30"></a><var>54.30</var>(B) $125,000 in the case of a head of a household;<br />
         		<a id="pl.54.31"></a><var>54.31</var>(C) $100,000 in the case of an individual who is not married and who is not a <br />
         		<a id="pl.54.32"></a><var>54.32</var>surviving spouse or head of a household; and<br />
         		<a id="pl.54.33"></a><var>54.33</var>(D) $75,000 in the case of a married individual filing a separate return; and<br />
         		<a id="pl.54.34"></a><var>54.34</var>(iv) the thresholds shall be increased by an amount equal to:<br />
         		<a id="pl.54.35"></a><var>54.35</var>(A) such dollar amount, multiplied by<br />
         		<a id="pl.55.1"></a><var>55.1</var>(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal <br />
         		<a id="pl.55.2"></a><var>55.2</var>Revenue Code for the calendar year in which the taxable year begins, by substituting <br />
         		<a id="pl.55.3"></a><var>55.3</var>"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and<br />
         		<a id="pl.55.4"></a><var>55.4</var>(17) to the extent deducted in the computation of federal taxable income, for taxable <br />
         		<a id="pl.55.5"></a><var>55.5</var>years beginning after December 31, 2010, and before January 1, 2014, the difference <br />
         		<a id="pl.55.6"></a><var>55.6</var>between the standard deduction allowed under section 63(c) of the Internal Revenue Code <br />
         		<a id="pl.55.7"></a><var>55.7</var>and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue <br />
         		<a id="pl.55.8"></a><var>55.8</var>Code as amended through December 1, 2010.<br />
         		<a id="pl.55.9"></a><var>55.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br />
         		<a id="pl.55.10"></a><var>55.10</var>except the changes incorporated by federal changes are effective retroactively at the same <br />
         		<a id="pl.55.11"></a><var>55.11</var>time as the changes were effective for federal purposes.<br />
         		<br />
         		<a id="bill.3.6.0"></a><a id="pl.55.12"></a><var>55.12</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:<br />
         		<a id="pl.55.13"></a><var>55.13</var>&#160;&#160;&#160;&#160;Subd. 19b. <b>Subtractions from federal taxable income.</b> For individuals, estates, <br />
         		<a id="pl.55.14"></a><var>55.14</var>and trusts, there shall be subtracted from federal taxable income:<br />
         		<a id="pl.55.15"></a><var>55.15</var>&#160;&#160;&#160;&#160;(1) net interest income on obligations of any authority, commission, or <br />
         		<a id="pl.55.16"></a><var>55.16</var>instrumentality of the United States to the extent includable in taxable income for federal <br />
         		<a id="pl.55.17"></a><var>55.17</var>income tax purposes but exempt from state income tax under the laws of the United States;<br />
         		<a id="pl.55.18"></a><var>55.18</var>&#160;&#160;&#160;&#160;(2) if included in federal taxable income, the amount of any overpayment of income <br />
         		<a id="pl.55.19"></a><var>55.19</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br />
         		<a id="pl.55.20"></a><var>55.20</var>is received as a refund or as a credit to another taxable year's income tax liability;<br />
         		<a id="pl.55.21"></a><var>55.21</var>&#160;&#160;&#160;&#160;(3) the amount paid to others, less the amount used to claim the credit allowed under <br />
         		<a id="pl.55.22"></a><var>55.22</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br />
         		<a id="pl.55.23"></a><var>55.23</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br />
         		<a id="pl.55.24"></a><var>55.24</var>transportation of each qualifying child in attending an elementary or secondary school <br />
         		<a id="pl.55.25"></a><var>55.25</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br />
         		<a id="pl.55.26"></a><var>55.26</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br />
         		<a id="pl.55.27"></a><var>55.27</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br />
         		<a id="pl.55.28"></a><var>55.28</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br />
         		<a id="pl.55.29"></a><var>55.29</var>tuition as defined in section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (1). As used in this clause, <br />
         		<a id="pl.55.30"></a><var>55.30</var>"textbooks" includes books and other instructional materials and equipment purchased <br />
         		<a id="pl.55.31"></a><var>55.31</var>or leased for use in elementary and secondary schools in teaching only those subjects <br />
         		<a id="pl.55.32"></a><var>55.32</var>legally and commonly taught in public elementary and secondary schools in this state. <br />
         		<a id="pl.55.33"></a><var>55.33</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br />
         		<a id="pl.55.34"></a><var>55.34</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br />
         		<a id="pl.55.35"></a><var>55.35</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br />
         		<a id="pl.56.1"></a><var>56.1</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br />
         		<a id="pl.56.2"></a><var>56.2</var>or materials for, or transportation to, extracurricular activities including sporting events, <br />
         		<a id="pl.56.3"></a><var>56.3</var>musical or dramatic events, speech activities, driver's education, or similar programs. No <br />
         		<a id="pl.56.4"></a><var>56.4</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or <br />
         		<a id="pl.56.5"></a><var>56.5</var>the qualifying child's vehicle to provide such transportation for a qualifying child. For <br />
         		<a id="pl.56.6"></a><var>56.6</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br />
         		<a id="pl.56.7"></a><var>56.7</var>given in section 32(c)(3) of the Internal Revenue Code;<br />
         		<a id="pl.56.8"></a><var>56.8</var>&#160;&#160;&#160;&#160;(4) income as provided under section 
         <statute_ref>290.0802</statute_ref>;<br />
         		<a id="pl.56.9"></a><var>56.9</var>&#160;&#160;&#160;&#160;(5) to the extent included in federal adjusted gross income, income realized on <br />
         		<a id="pl.56.10"></a><var>56.10</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>;<br />
         		<a id="pl.56.11"></a><var>56.11</var>&#160;&#160;&#160;&#160;(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br />
         		<a id="pl.56.12"></a><var>56.12</var>of the Internal Revenue Code in determining federal taxable income by an individual <br />
         		<a id="pl.56.13"></a><var>56.13</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br />
         		<a id="pl.56.14"></a><var>56.14</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br />
         		<a id="pl.56.15"></a><var>56.15</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, <br />
         		<a id="pl.56.16"></a><var>56.16</var>under the provisions of Public Law 109-1 and Public Law 111-126;<br />
         		<a id="pl.56.17"></a><var>56.17</var>&#160;&#160;&#160;&#160;(7) for individuals who are allowed a federal foreign tax credit for taxes that do not <br />
         		<a id="pl.56.18"></a><var>56.18</var>qualify for a credit under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, an amount equal to the carryover <br />
         		<a id="pl.56.19"></a><var>56.19</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br />
         		<a id="pl.56.20"></a><var>56.20</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br />
         		<a id="pl.56.21"></a><var>56.21</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br />
         		<a id="pl.56.22"></a><var>56.22</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br />
         		<a id="pl.56.23"></a><var>56.23</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br />
         		<a id="pl.56.24"></a><var>56.24</var>the extent they exceed the federal foreign tax credit;<br />
         		<a id="pl.56.25"></a><var>56.25</var>&#160;&#160;&#160;&#160;(8) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.56.26"></a><var>56.26</var>addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a <br />
         		<a id="pl.56.27"></a><var>56.27</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br />
         		<a id="pl.56.28"></a><var>56.28</var>delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount <br />
         		<a id="pl.56.29"></a><var>56.29</var>of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, <br />
         		<a id="pl.56.30"></a><var>56.30</var>clause (12), in the case of a shareholder of an S corporation, minus the positive value of <br />
         		<a id="pl.56.31"></a><var>56.31</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br />
         		<a id="pl.56.32"></a><var>56.32</var>tax year of the addition. The resulting delayed depreciation cannot be less than zero;<br />
         		<a id="pl.56.33"></a><var>56.33</var>&#160;&#160;&#160;&#160;(9) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>;<br />
         		<a id="pl.56.34"></a><var>56.34</var>&#160;&#160;&#160;&#160;(10) to the extent included in federal taxable income, the amount of compensation <br />
         		<a id="pl.56.35"></a><var>56.35</var>paid to members of the Minnesota National Guard or other reserve components of the <br />
         		<a id="pl.56.36"></a><var>56.36</var>United States military for active service, including compensation for services performed <br />
         		<a id="pl.57.1"></a><var>57.1</var>under the Active Guard Reserve (AGR) program. For purposes of this clause, "active <br />
         		<a id="pl.57.2"></a><var>57.2</var>service" means (i) state active service as defined in section 
         <statute_ref>190.05, subdivision 5a</statute_ref>, clause <br />
         		<a id="pl.57.3"></a><var>57.3</var>(1); or (ii) federally funded state active service as defined in section 
         <statute_ref>190.05, subdivision <br />
            		<a id="pl.57.4"></a><var>57.4</var>5b
         </statute_ref>, and "active service" includes service performed in accordance with section 
         <statute_ref>190.08, <br />
            		<a id="pl.57.5"></a><var>57.5</var>subdivision 3
         </statute_ref>;<br />
         		<a id="pl.57.6"></a><var>57.6</var>&#160;&#160;&#160;&#160;(11) to the extent included in federal taxable income, the amount of compensation <br />
         		<a id="pl.57.7"></a><var>57.7</var>paid to Minnesota residents who are members of the armed forces of the United States <br />
         		<a id="pl.57.8"></a><var>57.8</var>or United Nations for active duty performed under United States Code, title 10; or the <br />
         		<a id="pl.57.9"></a><var>57.9</var>authority of the United Nations;<br />
         		<a id="pl.57.10"></a><var>57.10</var>&#160;&#160;&#160;&#160;(12) an amount, not to exceed $10,000, equal to qualified expenses related to a <br />
         		<a id="pl.57.11"></a><var>57.11</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br />
         		<a id="pl.57.12"></a><var>57.12</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br />
         		<a id="pl.57.13"></a><var>57.13</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br />
         		<a id="pl.57.14"></a><var>57.14</var>"human organ transplantation" means the medical procedure by which transfer of a human <br />
         		<a id="pl.57.15"></a><var>57.15</var>organ is made from the body of one person to the body of another person; "qualified <br />
         		<a id="pl.57.16"></a><var>57.16</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br />
         		<a id="pl.57.17"></a><var>57.17</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br />
         		<a id="pl.57.18"></a><var>57.18</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br />
         		<a id="pl.57.19"></a><var>57.19</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br />
         		<a id="pl.57.20"></a><var>57.20</var>individual may claim the subtraction in this clause for each instance of organ donation for <br />
         		<a id="pl.57.21"></a><var>57.21</var>transplantation during the taxable year in which the qualified expenses occur;<br />
         		<a id="pl.57.22"></a><var>57.22</var>&#160;&#160;&#160;&#160;(13) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.57.23"></a><var>57.23</var>addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a <br />
         		<a id="pl.57.24"></a><var>57.24</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br />
         		<a id="pl.57.25"></a><var>57.25</var>addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the <br />
         		<a id="pl.57.26"></a><var>57.26</var>case of a shareholder of a corporation that is an S corporation, minus the positive value of <br />
         		<a id="pl.57.27"></a><var>57.27</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br />
         		<a id="pl.57.28"></a><var>57.28</var>tax year of the addition. If the net operating loss exceeds the addition for the tax year, <br />
         		<a id="pl.57.29"></a><var>57.29</var>a subtraction is not allowed under this clause the section 179 expensing subtraction as <br />
         		<a id="pl.57.30"></a><var>57.30</var>provided under section 290.0803, subdivision 3;<br />
         		<a id="pl.57.31"></a><var>57.31</var>&#160;&#160;&#160;&#160;(14) to the extent included in the federal taxable income of a nonresident of <br />
         		<a id="pl.57.32"></a><var>57.32</var>Minnesota, compensation paid to a service member as defined in United States Code, title <br />
         		<a id="pl.57.33"></a><var>57.33</var>10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief <br />
         		<a id="pl.57.34"></a><var>57.34</var>Act, Public Law 108-189, section 101(2);<br />
         		<a id="pl.57.35"></a><var>57.35</var>&#160;&#160;&#160;&#160;(15) to the extent included in federal taxable income, the amount of national service <br />
         		<a id="pl.57.36"></a><var>57.36</var>educational awards received from the National Service Trust under United States Code, <br />
         		<a id="pl.58.1"></a><var>58.1</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br />
         		<a id="pl.58.2"></a><var>58.2</var>program;<br />
         		<a id="pl.58.3"></a><var>58.3</var>(16) to the extent included in federal taxable income, discharge of indebtedness <br />
         		<a id="pl.58.4"></a><var>58.4</var>income resulting from reacquisition of business indebtedness included in federal taxable <br />
         		<a id="pl.58.5"></a><var>58.5</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br />
         		<a id="pl.58.6"></a><var>58.6</var>to the extent that the income was included in net income in a prior year as a result of the <br />
         		<a id="pl.58.7"></a><var>58.7</var>addition under subdivision 19a, clause (13);<br />
         		<a id="pl.58.8"></a><var>58.8</var>(17) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br />
            		<a id="pl.58.9"></a><var>58.9</var>11
         </statute_ref>, paragraph (c);<br />
         		<a id="pl.58.10"></a><var>58.10</var>(18) the amount of expenses not allowed for federal income tax purposes due <br />
         		<a id="pl.58.11"></a><var>58.11</var>to claiming the railroad track maintenance credit under section 45G(a) of the Internal <br />
         		<a id="pl.58.12"></a><var>58.12</var>Revenue Code;<br />
         		<a id="pl.58.13"></a><var>58.13</var>(19) the amount of the limitation on itemized deductions under section 68(b) of the <br />
         		<a id="pl.58.14"></a><var>58.14</var>Internal Revenue Code;<br />
         		<a id="pl.58.15"></a><var>58.15</var>(20) the amount of the phaseout of personal exemptions under section 151(d) of <br />
         		<a id="pl.58.16"></a><var>58.16</var>the Internal Revenue Code; and<br />
         		<a id="pl.58.17"></a><var>58.17</var>(21) to the extent included in federal taxable income, the amount of qualified <br />
         		<a id="pl.58.18"></a><var>58.18</var>transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal <br />
         		<a id="pl.58.19"></a><var>58.19</var>Revenue Code. The subtraction is limited to the lesser of the amount of qualified <br />
         		<a id="pl.58.20"></a><var>58.20</var>transportation fringe benefits received in excess of the limitations under section <br />
         		<a id="pl.58.21"></a><var>58.21</var>132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the <br />
         		<a id="pl.58.22"></a><var>58.22</var>maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal <br />
         		<a id="pl.58.23"></a><var>58.23</var>Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) <br />
         		<a id="pl.58.24"></a><var>58.24</var>of the Internal Revenue Code.<br />
         		<a id="pl.58.25"></a><var>58.25</var>(21) the amount equal to the contributions made during the taxable year to an <br />
         		<a id="pl.58.26"></a><var>58.26</var>account in a plan qualifying under section 529 of the Internal Revenue Code, reduced by <br />
         		<a id="pl.58.27"></a><var>58.27</var>any withdrawals from the account during the taxable year, not including amounts rolled <br />
         		<a id="pl.58.28"></a><var>58.28</var>over from other accounts in plans qualifying under section 529 of the Internal Revenue <br />
         		<a id="pl.58.29"></a><var>58.29</var>Code, and not to exceed $3,000 for married couples filing joint returns and $1,500 for <br />
         		<a id="pl.58.30"></a><var>58.30</var>all other filers. The subtraction must not include any amount used to claim the credit <br />
         		<a id="pl.58.31"></a><var>58.31</var>allowed under section 290.0684; and<br />
         		<a id="pl.58.32"></a><var>58.32</var>(22) to the extent included in federal taxable income, the discharge of indebtedness <br />
         		<a id="pl.58.33"></a><var>58.33</var>of the taxpayer if the indebtedness discharged is a qualified education loan, as defined in <br />
         		<a id="pl.58.34"></a><var>58.34</var>section 221 of the Internal Revenue Code, and the indebtedness was discharged following <br />
         		<a id="pl.58.35"></a><var>58.35</var>the taxpayer's completion of an income-driven repayment plan. For purposes of this <br />
         		<a id="pl.58.36"></a><var>58.36</var>clause, "income-driven repayment plan" means a payment plan established by the United <br />
         		<a id="pl.59.1"></a><var>59.1</var>States Department of Education that sets monthly student loan payments based on income <br />
         		<a id="pl.59.2"></a><var>59.2</var>and family size under United States Code, title 20, section 1087e, or similar authority and <br />
         		<a id="pl.59.3"></a><var>59.3</var>specifically includes, but is not limited to:<br />
         		<a id="pl.59.4"></a><var>59.4</var>(1) the income-based repayment plan under United State Code, title 20, section 1098e;<br />
         		<a id="pl.59.5"></a><var>59.5</var>(2) the income contingent repayment plan established under United State Code, <br />
         		<a id="pl.59.6"></a><var>59.6</var>title 20, section 1087e, subsection (e); and<br />
         		<a id="pl.59.7"></a><var>59.7</var>(3) the PAYE program or REPAYE program established by the Department of <br />
         		<a id="pl.59.8"></a><var>59.8</var>Education under administrative regulations.<br />
         		<a id="pl.59.9"></a><var>59.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.59.10"></a><var>59.10</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.7.0"></a><a id="pl.59.11"></a><var>59.11</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:<br />
         		<a id="pl.59.12"></a><var>59.12</var>&#160;&#160;&#160;&#160;Subd. 19c. <b>Corporations; additions to federal taxable income.</b> For corporations, <br />
         		<a id="pl.59.13"></a><var>59.13</var>there shall be added to federal taxable income:<br />
         		<a id="pl.59.14"></a><var>59.14</var>&#160;&#160;&#160;&#160;(1) the amount of any deduction taken for federal income tax purposes for income, <br />
         		<a id="pl.59.15"></a><var>59.15</var>excise, or franchise taxes based on net income or related minimum taxes, including but not <br />
         		<a id="pl.59.16"></a><var>59.16</var>limited to the tax imposed under section 
         <statute_ref>290.0922</statute_ref>, paid by the corporation to Minnesota, <br />
         		<a id="pl.59.17"></a><var>59.17</var>another state, a political subdivision of another state, the District of Columbia, or any <br />
         		<a id="pl.59.18"></a><var>59.18</var>foreign country or possession of the United States;<br />
         		<a id="pl.59.19"></a><var>59.19</var>&#160;&#160;&#160;&#160;(2) interest not subject to federal tax upon obligations of: the United States, its <br />
         		<a id="pl.59.20"></a><var>59.20</var>possessions, its agencies, or its instrumentalities; the state of Minnesota or any other <br />
         		<a id="pl.59.21"></a><var>59.21</var>state, any of its political or governmental subdivisions, any of its municipalities, or any <br />
         		<a id="pl.59.22"></a><var>59.22</var>of its governmental agencies or instrumentalities; the District of Columbia; or Indian <br />
         		<a id="pl.59.23"></a><var>59.23</var>tribal governments;<br />
         		<a id="pl.59.24"></a><var>59.24</var>&#160;&#160;&#160;&#160;(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal <br />
         		<a id="pl.59.25"></a><var>59.25</var>Revenue Code;<br />
         		<a id="pl.59.26"></a><var>59.26</var>&#160;&#160;&#160;&#160;(4) the amount of any net operating loss deduction taken for federal income tax <br />
         		<a id="pl.59.27"></a><var>59.27</var>purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss <br />
         		<a id="pl.59.28"></a><var>59.28</var>deduction under section 810 of the Internal Revenue Code;<br />
         		<a id="pl.59.29"></a><var>59.29</var>&#160;&#160;&#160;&#160;(5) the amount of any special deductions taken for federal income tax purposes <br />
         		<a id="pl.59.30"></a><var>59.30</var>under sections 241 to 247 and 965 of the Internal Revenue Code;<br />
         		<a id="pl.59.31"></a><var>59.31</var>&#160;&#160;&#160;&#160;(6) losses from the business of mining, as defined in section 
         <statute_ref>290.05, subdivision 1</statute_ref>, <br />
         		<a id="pl.59.32"></a><var>59.32</var>clause (a), that are not subject to Minnesota income tax;<br />
         		<a id="pl.59.33"></a><var>59.33</var>&#160;&#160;&#160;&#160;(7) the amount of any capital losses deducted for federal income tax purposes under <br />
         		<a id="pl.59.34"></a><var>59.34</var>sections 1211 and 1212 of the Internal Revenue Code;<br />
         		<a id="pl.60.1"></a><var>60.1</var>&#160;&#160;&#160;&#160;(8) the amount of percentage depletion deducted under sections 611 through 614 and <br />
         		<a id="pl.60.2"></a><var>60.2</var>291 of the Internal Revenue Code;<br />
         		<a id="pl.60.3"></a><var>60.3</var>&#160;&#160;&#160;&#160;(9) for certified pollution control facilities placed in service in a taxable year <br />
         		<a id="pl.60.4"></a><var>60.4</var>beginning before December 31, 1986, and for which amortization deductions were elected <br />
         		<a id="pl.60.5"></a><var>60.5</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br />
         		<a id="pl.60.6"></a><var>60.6</var>31, 1985, the amount of the amortization deduction allowed in computing federal taxable <br />
         		<a id="pl.60.7"></a><var>60.7</var>income for those facilities;<br />
         		<a id="pl.60.8"></a><var>60.8</var>&#160;&#160;&#160;&#160;(10) the amount of a partner's pro rata share of net income which does not flow <br />
         		<a id="pl.60.9"></a><var>60.9</var>through to the partner because the partnership elected to pay the tax on the income under <br />
         		<a id="pl.60.10"></a><var>60.10</var>section 6242(a)(2) of the Internal Revenue Code;<br />
         		<a id="pl.60.11"></a><var>60.11</var>&#160;&#160;&#160;&#160;(11) any increase in subpart F income, as defined in section 952(a) of the Internal <br />
         		<a id="pl.60.12"></a><var>60.12</var>Revenue Code, for the taxable year when subpart F income is calculated without regard to <br />
         		<a id="pl.60.13"></a><var>60.13</var>the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br />
         		<a id="pl.60.14"></a><var>60.14</var>&#160;&#160;&#160;&#160;(12) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A) <br />
         		<a id="pl.60.15"></a><var>60.15</var>and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer <br />
         		<a id="pl.60.16"></a><var>60.16</var>has an activity that in the taxable year generates a deduction for depreciation under <br />
         		<a id="pl.60.17"></a><var>60.17</var>section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year <br />
         		<a id="pl.60.18"></a><var>60.18</var>that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed <br />
         		<a id="pl.60.19"></a><var>60.19</var>under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the <br />
         		<a id="pl.60.20"></a><var>60.20</var>depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the <br />
         		<a id="pl.60.21"></a><var>60.21</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br />
         		<a id="pl.60.22"></a><var>60.22</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br />
         		<a id="pl.60.23"></a><var>60.23</var>under section 168(k)(1)(A) and (k)(4)(A) is allowed;<br />
         		<a id="pl.60.24"></a><var>60.24</var>&#160;&#160;&#160;&#160;(13) 80 percent of the amount by which the deduction allowed by section 179 of <br />
         		<a id="pl.60.25"></a><var>60.25</var>the Internal Revenue Code exceeds the deduction allowable by under the dollar limits of <br />
         		<a id="pl.60.26"></a><var>60.26</var>section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;<br />
         		<a id="pl.60.27"></a><var>60.27</var>&#160;&#160;&#160;&#160;(14) to the extent deducted in computing federal taxable income, the amount of the <br />
         		<a id="pl.60.28"></a><var>60.28</var>deduction allowable under section 199 of the Internal Revenue Code;<br />
         		<a id="pl.60.29"></a><var>60.29</var>&#160;&#160;&#160;&#160;(15) the amount of expenses disallowed under section 
         <statute_ref>290.10, subdivision 2</statute_ref>; and<br />
         		<a id="pl.60.30"></a><var>60.30</var>(16) discharge of indebtedness income resulting from reacquisition of business <br />
         		<a id="pl.60.31"></a><var>60.31</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code.<br />
         		<a id="pl.60.32"></a><var>60.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br />
         		<a id="pl.60.33"></a><var>60.33</var>except the changes incorporated by federal changes are effective retroactively at the same <br />
         		<a id="pl.60.34"></a><var>60.34</var>time as the changes were effective for federal purposes.<br />
         		<br />
         		<a id="bill.3.8.0"></a><a id="pl.60.35"></a><var>60.35</var>&#160;&#160;&#160;&#160;Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:<br />
         		<a id="pl.61.1"></a><var>61.1</var>&#160;&#160;&#160;&#160;Subd. 19d. <b>Corporations; modifications decreasing federal taxable income.</b> For <br />
         		<a id="pl.61.2"></a><var>61.2</var>corporations, there shall be subtracted from federal taxable income after the increases <br />
         		<a id="pl.61.3"></a><var>61.3</var>provided in subdivision 19c:<br />
         		<a id="pl.61.4"></a><var>61.4</var>&#160;&#160;&#160;&#160;(1) the amount of foreign dividend gross-up added to gross income for federal <br />
         		<a id="pl.61.5"></a><var>61.5</var>income tax purposes under section 78 of the Internal Revenue Code;<br />
         		<a id="pl.61.6"></a><var>61.6</var>&#160;&#160;&#160;&#160;(2) the amount of salary expense not allowed for federal income tax purposes due to <br />
         		<a id="pl.61.7"></a><var>61.7</var>claiming the work opportunity credit under section 51 of the Internal Revenue Code;<br />
         		<a id="pl.61.8"></a><var>61.8</var>&#160;&#160;&#160;&#160;(3) any dividend (not including any distribution in liquidation) paid within the <br />
         		<a id="pl.61.9"></a><var>61.9</var>taxable year by a national or state bank to the United States, or to any instrumentality of <br />
         		<a id="pl.61.10"></a><var>61.10</var>the United States exempt from federal income taxes, on the preferred stock of the bank <br />
         		<a id="pl.61.11"></a><var>61.11</var>owned by the United States or the instrumentality;<br />
         		<a id="pl.61.12"></a><var>61.12</var>&#160;&#160;&#160;&#160;(4) the deduction for capital losses pursuant to sections 1211 and 1212 of the <br />
         		<a id="pl.61.13"></a><var>61.13</var>Internal Revenue Code, except that:<br />
         		<a id="pl.61.14"></a><var>61.14</var>&#160;&#160;&#160;&#160;(i) for capital losses incurred in taxable years beginning after December 31, 1986, <br />
         		<a id="pl.61.15"></a><var>61.15</var>capital loss carrybacks shall not be allowed;<br />
         		<a id="pl.61.16"></a><var>61.16</var>&#160;&#160;&#160;&#160;(ii) for capital losses incurred in taxable years beginning after December 31, 1986, <br />
         		<a id="pl.61.17"></a><var>61.17</var>a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be <br />
         		<a id="pl.61.18"></a><var>61.18</var>allowed;<br />
         		<a id="pl.61.19"></a><var>61.19</var>&#160;&#160;&#160;&#160;(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a <br />
         		<a id="pl.61.20"></a><var>61.20</var>capital loss carryback to each of the three taxable years preceding the loss year, subject to <br />
         		<a id="pl.61.21"></a><var>61.21</var>the provisions of Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed; and<br />
         		<a id="pl.61.22"></a><var>61.22</var>&#160;&#160;&#160;&#160;(iv) for capital losses incurred in taxable years beginning before January 1, 1987, <br />
         		<a id="pl.61.23"></a><var>61.23</var>a capital loss carryover to each of the five taxable years succeeding the loss year to the <br />
         		<a id="pl.61.24"></a><var>61.24</var>extent such loss was not used in a prior taxable year and subject to the provisions of <br />
         		<a id="pl.61.25"></a><var>61.25</var>Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed;<br />
         		<a id="pl.61.26"></a><var>61.26</var>&#160;&#160;&#160;&#160;(5) an amount for interest and expenses relating to income not taxable for federal <br />
         		<a id="pl.61.27"></a><var>61.27</var>income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and <br />
         		<a id="pl.61.28"></a><var>61.28</var>expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or <br />
         		<a id="pl.61.29"></a><var>61.29</var>291 of the Internal Revenue Code in computing federal taxable income;<br />
         		<a id="pl.61.30"></a><var>61.30</var>&#160;&#160;&#160;&#160;(6) in the case of mines, oil and gas wells, other natural deposits, and timber for <br />
         		<a id="pl.61.31"></a><var>61.31</var>which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a <br />
         		<a id="pl.61.32"></a><var>61.32</var>reasonable allowance for depletion based on actual cost. In the case of leases the deduction <br />
         		<a id="pl.61.33"></a><var>61.33</var>must be apportioned between the lessor and lessee in accordance with rules prescribed <br />
         		<a id="pl.61.34"></a><var>61.34</var>by the commissioner. In the case of property held in trust, the allowable deduction must <br />
         		<a id="pl.61.35"></a><var>61.35</var>be apportioned between the income beneficiaries and the trustee in accordance with the <br />
         		<a id="pl.62.1"></a><var>62.1</var>pertinent provisions of the trust, or if there is no provision in the instrument, on the basis <br />
         		<a id="pl.62.2"></a><var>62.2</var>of the trust's income allocable to each;<br />
         		<a id="pl.62.3"></a><var>62.3</var>&#160;&#160;&#160;&#160;(7) for certified pollution control facilities placed in service in a taxable year <br />
         		<a id="pl.62.4"></a><var>62.4</var>beginning before December 31, 1986, and for which amortization deductions were elected <br />
         		<a id="pl.62.5"></a><var>62.5</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br />
         		<a id="pl.62.6"></a><var>62.6</var>31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes <br />
         		<a id="pl.62.7"></a><var>62.7</var>1986, section 
         <statute_ref>290.09, subdivision 7</statute_ref>;<br />
         		<a id="pl.62.8"></a><var>62.8</var>&#160;&#160;&#160;&#160;(8) amounts included in federal taxable income that are due to refunds of income, <br />
         		<a id="pl.62.9"></a><var>62.9</var>excise, or franchise taxes based on net income or related minimum taxes paid by the <br />
         		<a id="pl.62.10"></a><var>62.10</var>corporation to Minnesota, another state, a political subdivision of another state, the <br />
         		<a id="pl.62.11"></a><var>62.11</var>District of Columbia, or a foreign country or possession of the United States to the extent <br />
         		<a id="pl.62.12"></a><var>62.12</var>that the taxes were added to federal taxable income under subdivision 19c, clause (1), in a <br />
         		<a id="pl.62.13"></a><var>62.13</var>prior taxable year;<br />
         		<a id="pl.62.14"></a><var>62.14</var>&#160;&#160;&#160;&#160;(9) income or gains from the business of mining as defined in section 
         <statute_ref>290.05, <br />
            		<a id="pl.62.15"></a><var>62.15</var>subdivision 1
         </statute_ref>, clause (a), that are not subject to Minnesota franchise tax;<br />
         		<a id="pl.62.16"></a><var>62.16</var>&#160;&#160;&#160;&#160;(10) the amount of disability access expenditures in the taxable year which are not <br />
         		<a id="pl.62.17"></a><var>62.17</var>allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;<br />
         		<a id="pl.62.18"></a><var>62.18</var>&#160;&#160;&#160;&#160;(11) the amount of qualified research expenses not allowed for federal income tax <br />
         		<a id="pl.62.19"></a><var>62.19</var>purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that <br />
         		<a id="pl.62.20"></a><var>62.20</var>the amount exceeds the amount of the credit allowed under section 
         <statute_ref>290.068</statute_ref>;<br />
         		<a id="pl.62.21"></a><var>62.21</var>&#160;&#160;&#160;&#160;(12) the amount of salary expenses not allowed for federal income tax purposes due to <br />
         		<a id="pl.62.22"></a><var>62.22</var>claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code;<br />
         		<a id="pl.62.23"></a><var>62.23</var>&#160;&#160;&#160;&#160;(13) any decrease in subpart F income, as defined in section 952(a) of the Internal <br />
         		<a id="pl.62.24"></a><var>62.24</var>Revenue Code, for the taxable year when subpart F income is calculated without regard to <br />
         		<a id="pl.62.25"></a><var>62.25</var>the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br />
         		<a id="pl.62.26"></a><var>62.26</var>&#160;&#160;&#160;&#160;(14) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.62.27"></a><var>62.27</var>addition is required under subdivision 19c, clause (12), an amount equal to one-fifth of <br />
         		<a id="pl.62.28"></a><var>62.28</var>the delayed depreciation. For purposes of this clause, "delayed depreciation" means the <br />
         		<a id="pl.62.29"></a><var>62.29</var>amount of the addition made by the taxpayer under subdivision 19c, clause (12). The <br />
         		<a id="pl.62.30"></a><var>62.30</var>resulting delayed depreciation cannot be less than zero;<br />
         		<a id="pl.62.31"></a><var>62.31</var>&#160;&#160;&#160;&#160;(15) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.62.32"></a><var>62.32</var>addition is required under subdivision 19c, clause (13), an amount equal to one-fifth <br />
         		<a id="pl.62.33"></a><var>62.33</var>of the amount of the addition the section 179 expensing subtraction as provided under <br />
         		<a id="pl.62.34"></a><var>62.34</var>section 290.0803, subdivision 3;<br />
         		<a id="pl.62.35"></a><var>62.35</var>(16) to the extent included in federal taxable income, discharge of indebtedness <br />
         		<a id="pl.62.36"></a><var>62.36</var>income resulting from reacquisition of business indebtedness included in federal taxable <br />
         		<a id="pl.63.1"></a><var>63.1</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br />
         		<a id="pl.63.2"></a><var>63.2</var>to the extent that the income was included in net income in a prior year as a result of the <br />
         		<a id="pl.63.3"></a><var>63.3</var>addition under subdivision 19c, clause (16); and<br />
         		<a id="pl.63.4"></a><var>63.4</var>(17) the amount of expenses not allowed for federal income tax purposes due <br />
         		<a id="pl.63.5"></a><var>63.5</var>to claiming the railroad track maintenance credit under section 45G(a) of the Internal <br />
         		<a id="pl.63.6"></a><var>63.6</var>Revenue Code.<br />
         		<a id="pl.63.7"></a><var>63.7</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.63.8"></a><var>63.8</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.9.0"></a><a id="pl.63.9"></a><var>63.9</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 31, is <br />
         		<a id="pl.63.10"></a><var>63.10</var>amended to read:<br />
         		<a id="pl.63.11"></a><var>63.11</var>&#160;&#160;&#160;&#160;Subd. 31. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br />
         		<a id="pl.63.12"></a><var>63.12</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through December <br />
         		<a id="pl.63.13"></a><var>63.13</var>31, 2014 2015. Internal Revenue Code also includes any uncodified provision in federal <br />
         		<a id="pl.63.14"></a><var>63.14</var>law that relates to provisions of the Internal Revenue Code that are incorporated into <br />
         		<a id="pl.63.15"></a><var>63.15</var>Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, <br />
         		<a id="pl.63.16"></a><var>63.16</var>subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as <br />
         		<a id="pl.63.17"></a><var>63.17</var>amended through March 18, 2010.<br />
         		<a id="pl.63.18"></a><var>63.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br />
         		<a id="pl.63.19"></a><var>63.19</var>except the changes incorporated by federal changes are effective retroactively at the same <br />
         		<a id="pl.63.20"></a><var>63.20</var>time as the changes were effective for federal purposes.<br />
         		<br />
         		<a id="bill.3.10.0"></a><a id="pl.63.21"></a><var>63.21</var>&#160;&#160;&#160;&#160;Sec. 10. Minnesota Statutes 2014, section 290.06, subdivision 22, is amended to read:<br />
         		<a id="pl.63.22"></a><var>63.22</var>&#160;&#160;&#160;&#160;Subd. 22. <b>Credit for taxes paid to another state.</b> (a) A taxpayer who is liable for <br />
         		<a id="pl.63.23"></a><var>63.23</var>taxes based on net income to another state, as provided in paragraphs (b) through (f), upon <br />
         		<a id="pl.63.24"></a><var>63.24</var>income allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to <br />
         		<a id="pl.63.25"></a><var>63.25</var>another state if the tax is actually paid in the taxable year or a subsequent taxable year. A <br />
         		<a id="pl.63.26"></a><var>63.26</var>taxpayer who is a resident of this state pursuant to section 
         <statute_ref>290.01, subdivision 7</statute_ref>, paragraph <br />
         		<a id="pl.63.27"></a><var>63.27</var>(b), and who is subject to income tax as a resident in the state of the individual's domicile <br />
         		<a id="pl.63.28"></a><var>63.28</var>is not allowed this credit unless the state of domicile does not allow a similar credit.<br />
         		<a id="pl.63.29"></a><var>63.29</var>(b) For an individual, estate, or trust, the credit is determined by multiplying the tax <br />
         		<a id="pl.63.30"></a><var>63.30</var>payable under this chapter by the ratio derived by dividing the income subject to tax in the <br />
         		<a id="pl.63.31"></a><var>63.31</var>other state that is also subject to tax in Minnesota while a resident of Minnesota by the <br />
         		<a id="pl.63.32"></a><var>63.32</var>taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue <br />
         		<a id="pl.63.33"></a><var>63.33</var>Code, modified by the addition required by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1), <br />
         		<a id="pl.64.1"></a><var>64.1</var>and the subtraction allowed by section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1), to the extent <br />
         		<a id="pl.64.2"></a><var>64.2</var>the income is allocated or assigned to Minnesota under sections 
         <statute_ref>290.081</statute_ref> and 
         <statute_ref>290.17</statute_ref>.<br />
         		<a id="pl.64.3"></a><var>64.3</var>(c) If the taxpayer is an athletic team that apportions all of its income under section <br />
         		
         <statute_ref><a id="pl.64.4"></a><var>64.4</var>290.17, subdivision 5
         </statute_ref>, the credit is determined by multiplying the tax payable under this <br />
         		<a id="pl.64.5"></a><var>64.5</var>chapter by the ratio derived from dividing the total net income subject to tax in the other <br />
         		<a id="pl.64.6"></a><var>64.6</var>state by the taxpayer's Minnesota taxable income.<br />
         		<a id="pl.64.7"></a><var>64.7</var>(d) (1) The credit determined under paragraph (b) or (c) shall not exceed the amount <br />
         		<a id="pl.64.8"></a><var>64.8</var>of tax so paid to the other state on the gross income earned within the other state subject <br />
         		<a id="pl.64.9"></a><var>64.9</var>to tax under this chapter,. <br />
         		<a id="pl.64.10"></a><var>64.10</var>nor shall (2) The allowance of the credit does not reduce the taxes paid under this <br />
         		<a id="pl.64.11"></a><var>64.11</var>chapter to an amount less than what would be assessed if such income amount was the <br />
         		<a id="pl.64.12"></a><var>64.12</var>gross income earned within the other state were excluded from taxable net income.<br />
         		<a id="pl.64.13"></a><var>64.13</var>(e) In the case of the tax assessed on a lump-sum distribution under section <br />
         		
         <statute_ref><a id="pl.64.14"></a><var>64.14</var>290.032
         </statute_ref>, the credit allowed under paragraph (a) is the tax assessed by the other state on <br />
         		<a id="pl.64.15"></a><var>64.15</var>the lump-sum distribution that is also subject to tax under section 
         <statute_ref>290.032</statute_ref>, and shall <br />
         		<a id="pl.64.16"></a><var>64.16</var>not exceed the tax assessed under section 
         <statute_ref>290.032</statute_ref>. To the extent the total lump-sum <br />
         		<a id="pl.64.17"></a><var>64.17</var>distribution defined in section 
         <statute_ref>290.032, subdivision 1</statute_ref>, includes lump-sum distributions <br />
         		<a id="pl.64.18"></a><var>64.18</var>received in prior years or is all or in part an annuity contract, the reduction to the tax on <br />
         		<a id="pl.64.19"></a><var>64.19</var>the lump-sum distribution allowed under section 
         <statute_ref>290.032, subdivision 2</statute_ref>, includes tax paid <br />
         		<a id="pl.64.20"></a><var>64.20</var>to another state that is properly apportioned to that distribution.<br />
         		<a id="pl.64.21"></a><var>64.21</var>(f) If a Minnesota resident reported an item of income to Minnesota and is assessed <br />
         		<a id="pl.64.22"></a><var>64.22</var>tax in such other state on that same income after the Minnesota statute of limitations <br />
         		<a id="pl.64.23"></a><var>64.23</var>has expired, the taxpayer shall receive a credit for that year under paragraph (a), <br />
         		<a id="pl.64.24"></a><var>64.24</var>notwithstanding any statute of limitations to the contrary. The claim for the credit must <br />
         		<a id="pl.64.25"></a><var>64.25</var>be submitted within one year from the date the taxes were paid to the other state. The <br />
         		<a id="pl.64.26"></a><var>64.26</var>taxpayer must submit sufficient proof to show entitlement to a credit.<br />
         		<a id="pl.64.27"></a><var>64.27</var>(g) For the purposes of this subdivision, a resident shareholder of a corporation <br />
         		<a id="pl.64.28"></a><var>64.28</var>treated as an "S" corporation under section 
         <statute_ref>290.9725</statute_ref>, must be considered to have paid <br />
         		<a id="pl.64.29"></a><var>64.29</var>a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share <br />
         		<a id="pl.64.30"></a><var>64.30</var>of any net income tax paid by the S corporation to another state. For the purposes of the <br />
         		<a id="pl.64.31"></a><var>64.31</var>preceding sentence, the term "net income tax" means any tax imposed on or measured by <br />
         		<a id="pl.64.32"></a><var>64.32</var>a corporation's net income.<br />
         		<a id="pl.64.33"></a><var>64.33</var>(h) For the purposes of this subdivision, a resident partner of an entity taxed as a <br />
         		<a id="pl.64.34"></a><var>64.34</var>partnership under the Internal Revenue Code must be considered to have paid a tax imposed <br />
         		<a id="pl.64.35"></a><var>64.35</var>on the partner in an amount equal to the partner's pro rata share of any net income tax paid <br />
         		<a id="pl.65.1"></a><var>65.1</var>by the partnership to another state. For purposes of the preceding sentence, the term "net <br />
         		<a id="pl.65.2"></a><var>65.2</var>income" tax means any tax imposed on or measured by a partnership's net income.<br />
         		<a id="pl.65.3"></a><var>65.3</var>(i) For the purposes of this subdivision, "another state":<br />
         		<a id="pl.65.4"></a><var>65.4</var>(1) includes:<br />
         		<a id="pl.65.5"></a><var>65.5</var>(i) the District of Columbia; and<br />
         		<a id="pl.65.6"></a><var>65.6</var>(ii) a province or territory of Canada; but<br />
         		<a id="pl.65.7"></a><var>65.7</var>(2) excludes Puerto Rico and the several territories organized by Congress.<br />
         		<a id="pl.65.8"></a><var>65.8</var>(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a <br />
         		<a id="pl.65.9"></a><var>65.9</var>state by state basis.<br />
         		<a id="pl.65.10"></a><var>65.10</var>(k) For a tax imposed by a province or territory of Canada, the tax for purposes of <br />
         		<a id="pl.65.11"></a><var>65.11</var>this subdivision is the excess of the tax over the amount of the foreign tax credit allowed <br />
         		<a id="pl.65.12"></a><var>65.12</var>under section 27 of the Internal Revenue Code. In determining the amount of the foreign <br />
         		<a id="pl.65.13"></a><var>65.13</var>tax credit allowed, the net income taxes imposed by Canada on the income are deducted <br />
         		<a id="pl.65.14"></a><var>65.14</var>first. Any remaining amount of the allowable foreign tax credit reduces the provincial or <br />
         		<a id="pl.65.15"></a><var>65.15</var>territorial tax that qualifies for the credit under this subdivision.<br />
         		<a id="pl.65.16"></a><var>65.16</var>(l) If the amount of the credit which a qualifying individual is eligible to receive <br />
         		<a id="pl.65.17"></a><var>65.17</var>under this section for tax paid to a qualifying state, disregarding the limitation in paragraph <br />
         		<a id="pl.65.18"></a><var>65.18</var>(d), clause (2), exceeds the tax due under this chapter, the commissioner shall refund the <br />
         		<a id="pl.65.19"></a><var>65.19</var>excess to the individual. An amount sufficient to pay the refunds required by this section <br />
         		<a id="pl.65.20"></a><var>65.20</var>is appropriated to the commissioner from the general fund. <br />
         		<a id="pl.65.21"></a><var>65.21</var>For purposes of this paragraph, "qualifying individual" means a Minnesota resident under <br />
         		<a id="pl.65.22"></a><var>65.22</var>section 290.01, subdivision 7, paragraph (a), who received compensation during the <br />
         		<a id="pl.65.23"></a><var>65.23</var>taxable year for the performance of personal or professional services within a qualifying <br />
         		<a id="pl.65.24"></a><var>65.24</var>state, and "qualifying state" means a state with which an agreement under section 290.081 <br />
         		<a id="pl.65.25"></a><var>65.25</var>is not in effect for the taxable year but was in effect for a taxable year beginning before <br />
         		<a id="pl.65.26"></a><var>65.26</var>January 1, 2010.<br />
         		<a id="pl.65.27"></a><var>65.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.65.28"></a><var>65.28</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.11.0"></a><a id="pl.65.29"></a><var>65.29</var>&#160;&#160;&#160;&#160;Sec. 11. Minnesota Statutes 2014, section 290.067, subdivision 1, is amended to read:<br />
         		<a id="pl.65.30"></a><var>65.30</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Amount of credit.</b> (a) A taxpayer may take as a credit against the <br />
         		<a id="pl.65.31"></a><var>65.31</var>tax due from the taxpayer and a spouse, if any, under this chapter an amount equal to the <br />
         		<a id="pl.65.32"></a><var>65.32</var>dependent care credit for which the taxpayer is eligible pursuant to the provisions of <br />
         		<a id="pl.65.33"></a><var>65.33</var>section 21 of the Internal Revenue Code subject to the limitations provided in subdivision <br />
         		<a id="pl.65.34"></a><var>65.34</var>2 except that in determining whether the child qualified as a dependent, income received <br />
         		<a id="pl.65.35"></a><var>65.35</var>as a Minnesota family investment program grant or allowance to or on behalf of the child <br />
         		<a id="pl.66.1"></a><var>66.1</var>must not be taken into account in determining whether the child received more than half <br />
         		<a id="pl.66.2"></a><var>66.2</var>of the child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of <br />
         		<a id="pl.66.3"></a><var>66.3</var>the Internal Revenue Code do not apply.<br />
         		<a id="pl.66.4"></a><var>66.4</var>(b) If a child who has not attained the age of six years at the close of the taxable year <br />
         		<a id="pl.66.5"></a><var>66.5</var>is cared for at a licensed family day care home operated by the child's parent, the taxpayer <br />
         		<a id="pl.66.6"></a><var>66.6</var>is deemed to have paid employment-related expenses. If the child is 16 months old or <br />
         		<a id="pl.66.7"></a><var>66.7</var>younger at the close of the taxable year, the amount of expenses deemed to have been paid <br />
         		<a id="pl.66.8"></a><var>66.8</var>equals the maximum limit for one qualified individual under section 21(c) and (d) of the <br />
         		<a id="pl.66.9"></a><var>66.9</var>Internal Revenue Code. If the child is older than 16 months of age but has not attained the <br />
         		<a id="pl.66.10"></a><var>66.10</var>age of six years at the close of the taxable year, the amount of expenses deemed to have <br />
         		<a id="pl.66.11"></a><var>66.11</var>been paid equals the amount the licensee would charge for the care of a child of the same <br />
         		<a id="pl.66.12"></a><var>66.12</var>age for the same number of hours of care.<br />
         		<a id="pl.66.13"></a><var>66.13</var>(c) If a married couple:<br />
         		<a id="pl.66.14"></a><var>66.14</var>(1) has a child who has not attained the age of one year at the close of the taxable year;<br />
         		<a id="pl.66.15"></a><var>66.15</var>(2) files a joint tax return for the taxable year; and<br />
         		<a id="pl.66.16"></a><var>66.16</var>(3) does not participate in a dependent care assistance program as defined in section <br />
         		<a id="pl.66.17"></a><var>66.17</var>129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid <br />
         		<a id="pl.66.18"></a><var>66.18</var>for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of <br />
         		<a id="pl.66.19"></a><var>66.19</var>(i) the combined earned income of the couple or (ii) the amount of the maximum limit for <br />
         		<a id="pl.66.20"></a><var>66.20</var>one qualified individual under section 21(c) and (d) of the Internal Revenue Code will <br />
         		<a id="pl.66.21"></a><var>66.21</var>be deemed to be the employment related expense paid for that child. The earned income <br />
         		<a id="pl.66.22"></a><var>66.22</var>limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed <br />
         		<a id="pl.66.23"></a><var>66.23</var>amount. These deemed amounts apply regardless of whether any employment-related <br />
         		<a id="pl.66.24"></a><var>66.24</var>expenses have been paid.<br />
         		<a id="pl.66.25"></a><var>66.25</var>(d) If the taxpayer is not required and does not file a federal individual income tax <br />
         		<a id="pl.66.26"></a><var>66.26</var>return for the tax year, no credit is allowed for any amount paid to any person unless:<br />
         		<a id="pl.66.27"></a><var>66.27</var>(1) the name, address, and taxpayer identification number of the person are included <br />
         		<a id="pl.66.28"></a><var>66.28</var>on the return claiming the credit; or<br />
         		<a id="pl.66.29"></a><var>66.29</var>(2) if the person is an organization described in section 501(c)(3) of the Internal <br />
         		<a id="pl.66.30"></a><var>66.30</var>Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code, <br />
         		<a id="pl.66.31"></a><var>66.31</var>the name and address of the person are included on the return claiming the credit.<br />
         		<a id="pl.66.32"></a><var>66.32</var>In the case of a failure to provide the information required under the preceding sentence, <br />
         		<a id="pl.66.33"></a><var>66.33</var>the preceding sentence does not apply if it is shown that the taxpayer exercised due <br />
         		<a id="pl.66.34"></a><var>66.34</var>diligence in attempting to provide the information required.<br />
         		<a id="pl.66.35"></a><var>66.35</var>(e) In the case of a nonresident, part-year resident, or a person who has earned <br />
         		<a id="pl.66.36"></a><var>66.36</var>income not subject to tax under this chapter including earned income excluded pursuant to <br />
         		<a id="pl.67.1"></a><var>67.1</var>section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (9), the credit determined under section 21 of the <br />
         		<a id="pl.67.2"></a><var>67.2</var>Internal Revenue Code must be allocated based on the ratio by which the earned income <br />
         		<a id="pl.67.3"></a><var>67.3</var>of the claimant and the claimant's spouse from Minnesota sources bears to the total earned <br />
         		<a id="pl.67.4"></a><var>67.4</var>income of the claimant and the claimant's spouse.<br />
         		<a id="pl.67.5"></a><var>67.5</var>(f) For residents of Minnesota, the subtractions for military pay under section <br />
         		
         <statute_ref><a id="pl.67.6"></a><var>67.6</var>290.01, subdivision 19b
         </statute_ref>, clauses (10) and (11), are not considered "earned income not <br />
         		<a id="pl.67.7"></a><var>67.7</var>subject to tax under this chapter."<br />
         		<a id="pl.67.8"></a><var>67.8</var>(g) For residents of Minnesota, the exclusion of combat pay under section 112 of <br />
         		<a id="pl.67.9"></a><var>67.9</var>the Internal Revenue Code is not considered "earned income not subject to tax under <br />
         		<a id="pl.67.10"></a><var>67.10</var>this chapter."<br />
         		<a id="pl.67.11"></a><var>67.11</var>(h) For taxpayers with federal adjusted gross income in excess of $38,000, the <br />
         		<a id="pl.67.12"></a><var>67.12</var>credit is equal to the lesser of the credit otherwise calculated under this subdivision or the <br />
         		<a id="pl.67.13"></a><var>67.13</var>amount equal to the credit otherwise calculated under this subdivision minus ten percent <br />
         		<a id="pl.67.14"></a><var>67.14</var>of federal adjusted gross income in excess of $38,000, but in no case is the credit less than <br />
         		<a id="pl.67.15"></a><var>67.15</var>zero. For purposes of this paragraph, "federal adjusted gross income" has the meaning <br />
         		<a id="pl.67.16"></a><var>67.16</var>given in section 62 of the Internal Revenue Code.<br />
         		<a id="pl.67.17"></a><var>67.17</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.67.18"></a><var>67.18</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.12.0"></a><a id="pl.67.19"></a><var>67.19</var>&#160;&#160;&#160;&#160;Sec. 12. Minnesota Statutes 2014, section 290.067, subdivision 2b, is amended to read:<br />
         		<a id="pl.67.20"></a><var>67.20</var>&#160;&#160;&#160;&#160;Subd. 2b. <b>Inflation adjustment.</b> The commissioner shall adjust the dollar amount <br />
         		<a id="pl.67.21"></a><var>67.21</var>of the income threshold at which the maximum credit begins to be reduced under <br />
         		<a id="pl.67.22"></a><var>67.22</var>subdivision 2 1 by the percentage determined pursuant to the provisions of section 1(f) of <br />
         		<a id="pl.67.23"></a><var>67.23</var>the Internal Revenue Code, except that in section 1(f)(3)(B) the word "1999" "2015" shall <br />
         		<a id="pl.67.24"></a><var>67.24</var>be substituted for the word "1992." For 2001 2017, the commissioner shall then determine <br />
         		<a id="pl.67.25"></a><var>67.25</var>the percent change from the 12 months ending on August 31, 1999 2015, to the 12 months <br />
         		<a id="pl.67.26"></a><var>67.26</var>ending on August 31, 2000 2016, and in each subsequent year, from the 12 months ending <br />
         		<a id="pl.67.27"></a><var>67.27</var>on August 31, 1999 2015, to the 12 months ending on August 31 of the year preceding the <br />
         		<a id="pl.67.28"></a><var>67.28</var>taxable year. The determination of the commissioner pursuant to this subdivision must not <br />
         		<a id="pl.67.29"></a><var>67.29</var>be considered a "rule" and is not subject to the Administrative Procedure Act contained in <br />
         		<a id="pl.67.30"></a><var>67.30</var>chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount. <br />
         		<a id="pl.67.31"></a><var>67.31</var>If the amount ends in $5, the amount is rounded up to the nearest $10 amount.<br />
         		<a id="pl.67.32"></a><var>67.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.67.33"></a><var>67.33</var>December 31, 2016.<br />
         		<br />
         		<a id="bill.3.13.0"></a><a id="pl.68.1"></a><var>68.1</var>&#160;&#160;&#160;&#160;Sec. 13. Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1, <br />
         		<a id="pl.68.2"></a><var>68.2</var>is amended to read:<br />
         		<a id="pl.68.3"></a><var>68.3</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Credit allowed.</b> (a) An individual who is a resident of Minnesota is <br />
         		<a id="pl.68.4"></a><var>68.4</var>allowed a credit against the tax imposed by this chapter equal to a percentage of earned <br />
         		<a id="pl.68.5"></a><var>68.5</var>income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of <br />
         		<a id="pl.68.6"></a><var>68.6</var>the Internal Revenue Code., except that:<br />
         		<a id="pl.68.7"></a><var>68.7</var>(i) the earned income and adjusted gross income limitations of section 32 of the <br />
         		<a id="pl.68.8"></a><var>68.8</var>Internal Revenue Code do not apply; and<br />
         		<a id="pl.68.9"></a><var>68.9</var>(ii) a taxpayer with no qualifying children who has attained the age of 21 but not <br />
         		<a id="pl.68.10"></a><var>68.10</var>attained age 65 before the close of the taxable year and is otherwise eligible for a credit <br />
         		<a id="pl.68.11"></a><var>68.11</var>under section 32 of the Internal Revenue Code may also receive a credit.<br />
         		<a id="pl.68.12"></a><var>68.12</var>(b) For individuals with no qualifying children, the credit equals 2.10 three percent <br />
         		<a id="pl.68.13"></a><var>68.13</var>of the first $6,180 $6,500 of earned income. The credit is reduced by 2.01 three percent <br />
         		<a id="pl.68.14"></a><var>68.14</var>of earned income or adjusted gross income, whichever is greater, in excess of $8,130 <br />
         		<a id="pl.68.15"></a><var>68.15</var>$12,000, but in no case is the credit less than zero.<br />
         		<a id="pl.68.16"></a><var>68.16</var>(c) For individuals with one qualifying child, the credit equals 9.35 12.71 percent <br />
         		<a id="pl.68.17"></a><var>68.17</var>of the first $11,120 $8,350 of earned income. The credit is reduced by 6.02 5.2 percent <br />
         		<a id="pl.68.18"></a><var>68.18</var>of earned income or adjusted gross income, whichever is greater, in excess of $21,190 <br />
         		<a id="pl.68.19"></a><var>68.19</var>$21,620, but in no case is the credit less than zero.<br />
         		<a id="pl.68.20"></a><var>68.20</var>(d) For individuals with two or more qualifying children, the credit equals 11 14.94 <br />
         		<a id="pl.68.21"></a><var>68.21</var>percent of the first $18,240 $13,700 of earned income. The credit is reduced by 10.82 <br />
         		<a id="pl.68.22"></a><var>68.22</var>9.2 percent of earned income or adjusted gross income, whichever is greater, in excess of <br />
         		<a id="pl.68.23"></a><var>68.23</var>$25,130 $25,640, but in no case is the credit less than zero.<br />
         		<a id="pl.68.24"></a><var>68.24</var>(e) For a part-year resident, the credit must be allocated based on the percentage <br />
         		<a id="pl.68.25"></a><var>68.25</var>calculated under section 
         <statute_ref>290.06, subdivision 2c</statute_ref>, paragraph (e).<br />
         		<a id="pl.68.26"></a><var>68.26</var>(f) For a person who was a resident for the entire tax year and has earned income <br />
         		<a id="pl.68.27"></a><var>68.27</var>not subject to tax under this chapter, including income excluded under section 
         <statute_ref>290.01, <br />
            		<a id="pl.68.28"></a><var>68.28</var>subdivision 19b
         </statute_ref>, clause (9), the credit must be allocated based on the ratio of federal <br />
         		<a id="pl.68.29"></a><var>68.29</var>adjusted gross income reduced by the earned income not subject to tax under this chapter <br />
         		<a id="pl.68.30"></a><var>68.30</var>over federal adjusted gross income. For purposes of this paragraph, the subtractions <br />
         		<a id="pl.68.31"></a><var>68.31</var>for military pay under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (10) and (11), are not <br />
         		<a id="pl.68.32"></a><var>68.32</var>considered "earned income not subject to tax under this chapter."<br />
         		<a id="pl.68.33"></a><var>68.33</var>For the purposes of this paragraph, the exclusion of combat pay under section 112 <br />
         		<a id="pl.68.34"></a><var>68.34</var>of the Internal Revenue Code is not considered "earned income not subject to tax under <br />
         		<a id="pl.68.35"></a><var>68.35</var>this chapter."<br />
         		<a id="pl.69.1"></a><var>69.1</var>(g) For tax years beginning after December 31, 2007, and before December 31, 2010, <br />
         		<a id="pl.69.2"></a><var>69.2</var>and for tax years beginning after December 31, 2017, the $8,130 $12,000 in paragraph <br />
         		<a id="pl.69.3"></a><var>69.3</var>(b), the $21,190 $21,620 in paragraph (c), and the $25,130 $25,640 in paragraph (d), <br />
         		<a id="pl.69.4"></a><var>69.4</var>after being adjusted for inflation under subdivision 7, are each increased by $3,000 for <br />
         		<a id="pl.69.5"></a><var>69.5</var>married taxpayers filing joint returns. For tax years beginning after December 31, 2008 <br />
         		<a id="pl.69.6"></a><var>69.6</var>2017, the commissioner shall annually adjust the $3,000 by the percentage determined <br />
         		<a id="pl.69.7"></a><var>69.7</var>pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in <br />
         		<a id="pl.69.8"></a><var>69.8</var>section 1(f)(3)(B), the word "2007" shall be substituted for the word "1992." For 2009 <br />
         		<a id="pl.69.9"></a><var>69.9</var>2018, the commissioner shall then determine the percent change from the 12 months <br />
         		<a id="pl.69.10"></a><var>69.10</var>ending on August 31, 2007, to the 12 months ending on August 31, 2008 2017, and in <br />
         		<a id="pl.69.11"></a><var>69.11</var>each subsequent year, from the 12 months ending on August 31, 2007, to the 12 months <br />
         		<a id="pl.69.12"></a><var>69.12</var>ending on August 31 of the year preceding the taxable year. The earned income thresholds <br />
         		<a id="pl.69.13"></a><var>69.13</var>as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the <br />
         		<a id="pl.69.14"></a><var>69.14</var>amount is rounded up to the nearest $10. The determination of the commissioner under <br />
         		<a id="pl.69.15"></a><var>69.15</var>this subdivision is not a rule under the Administrative Procedure Act.<br />
         		<a id="pl.69.16"></a><var>69.16</var>(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014, <br />
         		<a id="pl.69.17"></a><var>69.17</var>the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph <br />
         		<a id="pl.69.18"></a><var>69.18</var>(d), after being adjusted for inflation under subdivision 7, are increased by $5,340 for <br />
         		<a id="pl.69.19"></a><var>69.19</var>married taxpayers filing joint returns; and (2) For tax years beginning after December 31, <br />
         		<a id="pl.69.20"></a><var>69.20</var>2013 2015, and before January 1, 2018, the $8,130 $12,000 in paragraph (b), the $21,190 <br />
         		<a id="pl.69.21"></a><var>69.21</var>$21,620 in paragraph (c), and the $25,130 $25,640 in paragraph (d), after being adjusted <br />
         		<a id="pl.69.22"></a><var>69.22</var>for inflation under subdivision 7, are each increased by $5,000 for married taxpayers filing <br />
         		<a id="pl.69.23"></a><var>69.23</var>joint returns. For tax years beginning after December 31, 2010, and before January 1, <br />
         		<a id="pl.69.24"></a><var>69.24</var>2012, and for tax years beginning after December 31, 2013 2015, and before January 1, <br />
         		<a id="pl.69.25"></a><var>69.25</var>2018, the commissioner shall annually adjust the $5,000 by the percentage determined <br />
         		<a id="pl.69.26"></a><var>69.26</var>pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in <br />
         		<a id="pl.69.27"></a><var>69.27</var>section 1(f)(3)(B), the word "2008" shall be substituted for the word "1992." For 2011 <br />
         		<a id="pl.69.28"></a><var>69.28</var>2016, the commissioner shall then determine the percent change from the 12 months <br />
         		<a id="pl.69.29"></a><var>69.29</var>ending on August 31, 2008, to the 12 months ending on August 31, 2010 2015, and in <br />
         		<a id="pl.69.30"></a><var>69.30</var>each subsequent year, from the 12 months ending on August 31, 2008, to the 12 months <br />
         		<a id="pl.69.31"></a><var>69.31</var>ending on August 31 of the year preceding the taxable year. The earned income thresholds <br />
         		<a id="pl.69.32"></a><var>69.32</var>as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the <br />
         		<a id="pl.69.33"></a><var>69.33</var>amount is rounded up to the nearest $10. The determination of the commissioner under <br />
         		<a id="pl.69.34"></a><var>69.34</var>this subdivision is not a rule under the Administrative Procedure Act.<br />
         		<a id="pl.69.35"></a><var>69.35</var>(i) The commissioner shall construct tables showing the amount of the credit at <br />
         		<a id="pl.69.36"></a><var>69.36</var>various income levels and make them available to taxpayers. The tables shall follow <br />
         		<a id="pl.70.1"></a><var>70.1</var>the schedule contained in this subdivision, except that the commissioner may graduate <br />
         		<a id="pl.70.2"></a><var>70.2</var>the transition between income brackets.<br />
         		<a id="pl.70.3"></a><var>70.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.70.4"></a><var>70.4</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.14.0"></a><a id="pl.70.5"></a><var>70.5</var>&#160;&#160;&#160;&#160;Sec. 14. Minnesota Statutes 2014, section 290.0671, subdivision 7, is amended to read:<br />
         		<a id="pl.70.6"></a><var>70.6</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Inflation adjustment.</b> The earned income amounts used to calculate <br />
         		<a id="pl.70.7"></a><var>70.7</var>the credit and the income thresholds at which the maximum credit begins to be reduced <br />
         		<a id="pl.70.8"></a><var>70.8</var>in subdivision 1 must be adjusted for inflation. The commissioner shall adjust by the <br />
         		<a id="pl.70.9"></a><var>70.9</var>percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue <br />
         		<a id="pl.70.10"></a><var>70.10</var>Code, except that in section 1(f)(3)(B) the word "2013" "2015" shall be substituted for <br />
         		<a id="pl.70.11"></a><var>70.11</var>the word "1992." For 2015 2017, the commissioner shall then determine the percent <br />
         		<a id="pl.70.12"></a><var>70.12</var>change from the 12 months ending on August 31, 2013 2015, to the 12 months ending <br />
         		<a id="pl.70.13"></a><var>70.13</var>on August 31, 2014 2016, and in each subsequent year, from the 12 months ending on <br />
         		<a id="pl.70.14"></a><var>70.14</var>August 31, 2013 2015, to the 12 months ending on August 31 of the year preceding the <br />
         		<a id="pl.70.15"></a><var>70.15</var>taxable year. The earned income thresholds as adjusted for inflation must be rounded to <br />
         		<a id="pl.70.16"></a><var>70.16</var>the nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest <br />
         		<a id="pl.70.17"></a><var>70.17</var>$10 amount. The determination of the commissioner under this subdivision is not a rule <br />
         		<a id="pl.70.18"></a><var>70.18</var>under the Administrative Procedure Act.<br />
         		<a id="pl.70.19"></a><var>70.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.70.20"></a><var>70.20</var>December 31, 2016.<br />
         		<br />
         		<a id="bill.3.15.0"></a><a id="pl.70.21"></a><var>70.21</var>&#160;&#160;&#160;&#160;Sec. 15. Minnesota Statutes 2014, section 290.0674, subdivision 2, is amended to read:<br />
         		<a id="pl.70.22"></a><var>70.22</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Limitations.</b> (a) For claimants with income not greater than $33,500, the <br />
         		<a id="pl.70.23"></a><var>70.23</var>maximum credit allowed for a family is $1,000 multiplied by the number of qualifying <br />
         		<a id="pl.70.24"></a><var>70.24</var>children in kindergarten through grade 12 in the family. The maximum credit for families <br />
         		<a id="pl.70.25"></a><var>70.25</var>with one qualifying child in kindergarten through grade 12 is reduced by $1 for each $4 of <br />
         		<a id="pl.70.26"></a><var>70.26</var>household income over $33,500, and the maximum credit for families with two or more <br />
         		<a id="pl.70.27"></a><var>70.27</var>qualifying children in kindergarten through grade 12 is reduced by $2 for each $4 of <br />
         		<a id="pl.70.28"></a><var>70.28</var>household income over $33,500, but in no case is the credit less than zero.<br />
         		<a id="pl.70.29"></a><var>70.29</var>For purposes of this section "income" has the meaning given in section 290.067, <br />
         		<a id="pl.70.30"></a><var>70.30</var>subdivision 2a. In the case of a married claimant, a credit is not allowed unless a joint <br />
         		<a id="pl.70.31"></a><var>70.31</var>income tax return is filed.<br />
         		<a id="pl.71.1"></a><var>71.1</var>(b) For a nonresident or part-year resident, the credit determined under subdivision 1 <br />
         		<a id="pl.71.2"></a><var>71.2</var>and the maximum credit amount in paragraph (a) must be allocated using the percentage <br />
         		<a id="pl.71.3"></a><var>71.3</var>calculated in section 
         <statute_ref>290.06, subdivision 2c</statute_ref>, paragraph (e).<br />
         		<a id="pl.71.4"></a><var>71.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.71.5"></a><var>71.5</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.16.0"></a><a id="pl.71.6"></a><var>71.6</var>&#160;&#160;&#160;&#160;Sec. 16. Minnesota Statutes 2014, section 290.0674, is amended by adding a <br />
         		<a id="pl.71.7"></a><var>71.7</var>subdivision to read:<br />
         		<a id="pl.71.8"></a><var>71.8</var>&#160;&#160;&#160;&#160;Subd. 2a. <b>Income.</b> (a) For purposes of this section, "income" means the sum of <br />
         		<a id="pl.71.9"></a><var>71.9</var>the following:<br />
         		<a id="pl.71.10"></a><var>71.10</var>(1) federal adjusted gross income as defined in section 62 of the Internal Revenue <br />
         		<a id="pl.71.11"></a><var>71.11</var>Code; and<br />
         		<a id="pl.71.12"></a><var>71.12</var>(2) the sum of the following amounts to the extent not included in clause (1):<br />
         		<a id="pl.71.13"></a><var>71.13</var>(i) all nontaxable income;<br />
         		<a id="pl.71.14"></a><var>71.14</var>(ii) the amount of a passive activity loss that is not disallowed as a result of section <br />
         		<a id="pl.71.15"></a><var>71.15</var>469, paragraph (i) or (m), of the Internal Revenue Code and the amount of passive activity <br />
         		<a id="pl.71.16"></a><var>71.16</var>loss carryover allowed under section 469(b) of the Internal Revenue Code;<br />
         		<a id="pl.71.17"></a><var>71.17</var>(iii) an amount equal to the total of any discharge of qualified farm indebtedness <br />
         		<a id="pl.71.18"></a><var>71.18</var>of a solvent individual excluded from gross income under section 108(g) of the Internal <br />
         		<a id="pl.71.19"></a><var>71.19</var>Revenue Code;<br />
         		<a id="pl.71.20"></a><var>71.20</var>(iv) cash public assistance and relief;<br />
         		<a id="pl.71.21"></a><var>71.21</var>(v) any pension or annuity (including railroad retirement benefits, all payments <br />
         		<a id="pl.71.22"></a><var>71.22</var>received under the federal Social Security Act, Supplemental Security Income, and <br />
         		<a id="pl.71.23"></a><var>71.23</var>veterans benefits), which was not exclusively funded by the claimant or spouse, or which <br />
         		<a id="pl.71.24"></a><var>71.24</var>was funded exclusively by the claimant or spouse and which funding payments were <br />
         		<a id="pl.71.25"></a><var>71.25</var>excluded from federal adjusted gross income in the years when the payments were made;<br />
         		<a id="pl.71.26"></a><var>71.26</var>(vi) interest received from the federal or a state government or any instrumentality <br />
         		<a id="pl.71.27"></a><var>71.27</var>or political subdivision thereof;<br />
         		<a id="pl.71.28"></a><var>71.28</var>(vii) workers' compensation;<br />
         		<a id="pl.71.29"></a><var>71.29</var>(viii) nontaxable strike benefits;<br />
         		<a id="pl.71.30"></a><var>71.30</var>(ix) the gross amounts of payments received in the nature of disability income or <br />
         		<a id="pl.71.31"></a><var>71.31</var>sick pay as a result of accident, sickness, or other disability, whether funded through <br />
         		<a id="pl.71.32"></a><var>71.32</var>insurance or otherwise;<br />
         		<a id="pl.71.33"></a><var>71.33</var>(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of <br />
         		<a id="pl.71.34"></a><var>71.34</var>1986, as amended through December 31, 1995;<br />
         		<a id="pl.72.1"></a><var>72.1</var>(xi) contributions made by the claimant to an individual retirement account, <br />
         		<a id="pl.72.2"></a><var>72.2</var>including a qualified voluntary employee contribution; simplified employee pension plan; <br />
         		<a id="pl.72.3"></a><var>72.3</var>self-employed retirement plan; cash or deferred arrangement plan under section 401(k) <br />
         		<a id="pl.72.4"></a><var>72.4</var>of the Internal Revenue Code; or deferred compensation plan under section 457 of the <br />
         		<a id="pl.72.5"></a><var>72.5</var>Internal Revenue Code;<br />
         		<a id="pl.72.6"></a><var>72.6</var>(xii) nontaxable scholarship or fellowship grants;<br />
         		<a id="pl.72.7"></a><var>72.7</var>(xiii) the amount of deduction allowed under section 199 of the Internal Revenue <br />
         		<a id="pl.72.8"></a><var>72.8</var>Code;<br />
         		<a id="pl.72.9"></a><var>72.9</var>(xiv) the amount of deduction allowed under section 220 or 223 of the Internal <br />
         		<a id="pl.72.10"></a><var>72.10</var>Revenue Code;<br />
         		<a id="pl.72.11"></a><var>72.11</var>(xv) the amount deducted for tuition expenses under section 222 of the Internal <br />
         		<a id="pl.72.12"></a><var>72.12</var>Revenue Code; and<br />
         		<a id="pl.72.13"></a><var>72.13</var>(xvi) the amount deducted for certain expenses of elementary and secondary school <br />
         		<a id="pl.72.14"></a><var>72.14</var>teachers under section 62(a)(2)(D) of the Internal Revenue Code.<br />
         		<a id="pl.72.15"></a><var>72.15</var>In the case of an individual who files an income tax return on a fiscal year basis, the <br />
         		<a id="pl.72.16"></a><var>72.16</var>term "federal adjusted gross income" means federal adjusted gross income reflected in the <br />
         		<a id="pl.72.17"></a><var>72.17</var>fiscal year ending in the next calendar year. Federal adjusted gross income may not be <br />
         		<a id="pl.72.18"></a><var>72.18</var>reduced by the amount of a net operating loss carryback or carryforward or a capital loss <br />
         		<a id="pl.72.19"></a><var>72.19</var>carryback or carryforward allowed for the year.<br />
         		<a id="pl.72.20"></a><var>72.20</var>(b) "Income" does not include:<br />
         		<a id="pl.72.21"></a><var>72.21</var>(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;<br />
         		<a id="pl.72.22"></a><var>72.22</var>(2) amounts of any pension or annuity that were exclusively funded by the claimant <br />
         		<a id="pl.72.23"></a><var>72.23</var>or spouse if the funding payments were not excluded from federal adjusted gross income <br />
         		<a id="pl.72.24"></a><var>72.24</var>in the years when the payments were made;<br />
         		<a id="pl.72.25"></a><var>72.25</var>(3) surplus food or other relief in kind supplied by a governmental agency;<br />
         		<a id="pl.72.26"></a><var>72.26</var>(4) relief granted under chapter 290A;<br />
         		<a id="pl.72.27"></a><var>72.27</var>(5) child support payments received under a temporary or final decree of dissolution <br />
         		<a id="pl.72.28"></a><var>72.28</var>or legal separation; and<br />
         		<a id="pl.72.29"></a><var>72.29</var>(6) restitution payments received by eligible individuals and excludable interest as <br />
         		<a id="pl.72.30"></a><var>72.30</var>defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of <br />
         		<a id="pl.72.31"></a><var>72.31</var>2001, Public Law 107-16.<br />
         		<a id="pl.72.32"></a><var>72.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.72.33"></a><var>72.33</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.17.0"></a><a id="pl.72.34"></a><var>72.34</var>&#160;&#160;&#160;&#160;Sec. 17. Minnesota Statutes 2014, section 290.0677, subdivision 1a, is amended to read:<br />
         		<a id="pl.73.1"></a><var>73.1</var>&#160;&#160;&#160;&#160;Subd. 1a. <b>Credit allowed; past military service.</b> (a) A qualified individual is <br />
         		<a id="pl.73.2"></a><var>73.2</var>allowed a credit against the tax imposed under this chapter for past military service. <br />
         		<a id="pl.73.3"></a><var>73.3</var>The credit equals $750 $1,000. The credit allowed under this subdivision is reduced by <br />
         		<a id="pl.73.4"></a><var>73.4</var>ten percent of adjusted gross income in excess of $30,000 $50,000, but in no case is <br />
         		<a id="pl.73.5"></a><var>73.5</var>the credit less than zero.<br />
         		<a id="pl.73.6"></a><var>73.6</var>&#160;&#160;&#160;&#160;(b) For a nonresident or a part-year resident, the credit under this subdivision <br />
         		<a id="pl.73.7"></a><var>73.7</var>must be allocated based on the percentage calculated under section 
         <statute_ref>290.06, subdivision <br />
            		<a id="pl.73.8"></a><var>73.8</var>2c
         </statute_ref>, paragraph (e).<br />
         		<a id="pl.73.9"></a><var>73.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.73.10"></a><var>73.10</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.18.0"></a><a id="pl.73.11"></a><var>73.11</var>&#160;&#160;&#160;&#160;Sec. 18. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:<br />
         		<a id="pl.73.12"></a><var>73.12</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Definitions.</b> For purposes of this section, the following terms have the <br />
         		<a id="pl.73.13"></a><var>73.13</var>meanings given.<br />
         		<a id="pl.73.14"></a><var>73.14</var>&#160;&#160;&#160;&#160;(a) "Qualified research expenses" means (i) qualified research expenses and basic <br />
         		<a id="pl.73.15"></a><var>73.15</var>research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except <br />
         		<a id="pl.73.16"></a><var>73.16</var>it does not include expenses incurred for qualified research or basic research conducted <br />
         		<a id="pl.73.17"></a><var>73.17</var>outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue <br />
         		<a id="pl.73.18"></a><var>73.18</var>Code; and (ii) contributions to a nonprofit corporation established and operated pursuant <br />
         		<a id="pl.73.19"></a><var>73.19</var>to the provisions of chapter 317A for the purpose of promoting the establishment and <br />
         		<a id="pl.73.20"></a><var>73.20</var>expansion of business in this state, provided the contributions are invested by the nonprofit <br />
         		<a id="pl.73.21"></a><var>73.21</var>corporation for the purpose of providing funds for small, technologically innovative <br />
         		<a id="pl.73.22"></a><var>73.22</var>enterprises in Minnesota during the early stages of their development.<br />
         		<a id="pl.73.23"></a><var>73.23</var>&#160;&#160;&#160;&#160;(b) "Qualified research" means qualified research as defined in section 41(d) of the <br />
         		<a id="pl.73.24"></a><var>73.24</var>Internal Revenue Code, except that the term does not include qualified research conducted <br />
         		<a id="pl.73.25"></a><var>73.25</var>outside the state of Minnesota.<br />
         		<a id="pl.73.26"></a><var>73.26</var>&#160;&#160;&#160;&#160;(c) "Base amount" means base amount as defined in section 41(c) of the Internal <br />
         		<a id="pl.73.27"></a><var>73.27</var>Revenue Code, except that the average annual gross receipts must be calculated using <br />
         		<a id="pl.73.28"></a><var>73.28</var>Minnesota sales or receipts under section 
         <statute_ref>290.191</statute_ref> and the definitions contained in clauses <br />
         		<a id="pl.73.29"></a><var>73.29</var>(a) and (b) shall apply. If there are inadequate records or the records are unavailable to <br />
         		<a id="pl.73.30"></a><var>73.30</var>compute or verify the base percentage, a fixed base percentage of 16 percent must be used.<br />
         		<a id="pl.73.31"></a><var>73.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.73.32"></a><var>73.32</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.19.0"></a><a id="pl.74.1"></a><var>74.1</var>&#160;&#160;&#160;&#160;Sec. 19. <b>[290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN </b><br />
         		<a id="pl.74.2"></a><var>74.2</var><b>TEACHER'S LICENSURE FIELD.</b><br />
         		<a id="pl.74.3"></a><var>74.3</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br />
         		<a id="pl.74.4"></a><var>74.4</var>have the meanings given them.<br />
         		<a id="pl.74.5"></a><var>74.5</var>(b) "Master's degree program" means a graduate-level program at an accredited <br />
         		<a id="pl.74.6"></a><var>74.6</var>university leading to a master of arts or science degree in a core content area directly <br />
         		<a id="pl.74.7"></a><var>74.7</var>related to a qualified teacher's licensure field. The master's degree program may not <br />
         		<a id="pl.74.8"></a><var>74.8</var>include pedagogy or a pedagogy component. To be eligible under this credit, a licensed <br />
         		<a id="pl.74.9"></a><var>74.9</var>elementary school teacher must pursue and complete a master's degree program in a core <br />
         		<a id="pl.74.10"></a><var>74.10</var>content area in which the teacher provides direct classroom instruction.<br />
         		<a id="pl.74.11"></a><var>74.11</var>(c) "Qualified teacher" means a K-12 teacher who:<br />
         		<a id="pl.74.12"></a><var>74.12</var>(1) holds a continuing license granted by the Minnesota Board of Teaching both <br />
         		<a id="pl.74.13"></a><var>74.13</var>when the teacher begins the master's degree program and when the teacher completes the <br />
         		<a id="pl.74.14"></a><var>74.14</var>master's degree program;<br />
         		<a id="pl.74.15"></a><var>74.15</var>(2) began a master's degree program after June 30, 2016; and<br />
         		<a id="pl.74.16"></a><var>74.16</var>(3) completes the master's degree program during the taxable year.<br />
         		<a id="pl.74.17"></a><var>74.17</var>(d) "Core content area" means the academic subject of reading, English or language <br />
         		<a id="pl.74.18"></a><var>74.18</var>arts, mathematics, science, foreign languages, civics and government, economics, arts, <br />
         		<a id="pl.74.19"></a><var>74.19</var>history, or geography.<br />
         		<a id="pl.74.20"></a><var>74.20</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Credit allowed.</b> (a) An individual who is a qualified teacher is allowed a <br />
         		<a id="pl.74.21"></a><var>74.21</var>credit against the tax imposed under this chapter. The credit equals $2,500.<br />
         		<a id="pl.74.22"></a><var>74.22</var>(b) For a nonresident or a part-year resident, the credit under this subdivision <br />
         		<a id="pl.74.23"></a><var>74.23</var>must be allocated based on the percentage calculated under section 290.06, subdivision <br />
         		<a id="pl.74.24"></a><var>74.24</var>2c, paragraph (e).<br />
         		<a id="pl.74.25"></a><var>74.25</var>(c) A qualified teacher may claim the credit in this section only one time for each <br />
         		<a id="pl.74.26"></a><var>74.26</var>master's degree program completed in a core content area.<br />
         		<a id="pl.74.27"></a><var>74.27</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Credit refundable.</b> (a) If the amount of the credit for which an individual <br />
         		<a id="pl.74.28"></a><var>74.28</var>is eligible exceeds the individual's liability for tax under this chapter, the commissioner <br />
         		<a id="pl.74.29"></a><var>74.29</var>shall refund the excess to the individual.<br />
         		<a id="pl.74.30"></a><var>74.30</var>(b) The amount necessary to pay the refunds required by this section is appropriated <br />
         		<a id="pl.74.31"></a><var>74.31</var>to the commissioner from the general fund.<br />
         		<a id="pl.74.32"></a><var>74.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.74.33"></a><var>74.33</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.20.0"></a><a id="pl.74.34"></a><var>74.34</var>&#160;&#160;&#160;&#160;Sec. 20. <b>[290.0683] STUDENT LOAN CREDIT.</b><br />
         		<a id="pl.75.1"></a><var>75.1</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br />
         		<a id="pl.75.2"></a><var>75.2</var>have the meanings given.<br />
         		<a id="pl.75.3"></a><var>75.3</var>(b) "Adjusted gross income" means federal adjusted gross income as defined in <br />
         		<a id="pl.75.4"></a><var>75.4</var>section 62 of the Internal Revenue Code. In the case of a married couple filing jointly, <br />
         		<a id="pl.75.5"></a><var>75.5</var>"adjusted gross income" means the adjusted gross income of the taxpayer and spouse.<br />
         		<a id="pl.75.6"></a><var>75.6</var>(c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue <br />
         		<a id="pl.75.7"></a><var>75.7</var>Code, except that "earned income" includes combat pay excluded from federal taxable <br />
         		<a id="pl.75.8"></a><var>75.8</var>income under section 112 of the Internal Revenue Code.<br />
         		<a id="pl.75.9"></a><var>75.9</var>(d) "Education profession" means:<br />
         		<a id="pl.75.10"></a><var>75.10</var>(1) a full-time job in public education; early childhood education, including licensed <br />
         		<a id="pl.75.11"></a><var>75.11</var>or regulated child care, Head Start, and state-funded prekindergarten; school-based library <br />
         		<a id="pl.75.12"></a><var>75.12</var>sciences; and other school-based services; or<br />
         		<a id="pl.75.13"></a><var>75.13</var>(2) a full-time job as a faculty member at a tribal college or university as defined in <br />
         		<a id="pl.75.14"></a><var>75.14</var>section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs <br />
         		<a id="pl.75.15"></a><var>75.15</var>subject areas or areas of shortage, including nurse faculty, foreign language faculty, and <br />
         		<a id="pl.75.16"></a><var>75.16</var>part-time faculty at community colleges, as determined by the United States Secretary <br />
         		<a id="pl.75.17"></a><var>75.17</var>of Education.<br />
         		<a id="pl.75.18"></a><var>75.18</var>(e) "Eligible individual" means an individual who has one or more qualified <br />
         		<a id="pl.75.19"></a><var>75.19</var>education loans related to an undergraduate or graduate degree program of the individual <br />
         		<a id="pl.75.20"></a><var>75.20</var>at a postsecondary educational institution.<br />
         		<a id="pl.75.21"></a><var>75.21</var>(f) "Eligible loan payments" means the amount the eligible individual paid during <br />
         		<a id="pl.75.22"></a><var>75.22</var>the taxable year to pay principal and interest on qualified education loans.<br />
         		<a id="pl.75.23"></a><var>75.23</var>(g) "Postsecondary educational institution" means a postsecondary institution <br />
         		<a id="pl.75.24"></a><var>75.24</var>eligible for state student aid under section 136A.103 or, if the institution is not located in <br />
         		<a id="pl.75.25"></a><var>75.25</var>this state, a postsecondary institution participating in the federal Pell Grant program under <br />
         		<a id="pl.75.26"></a><var>75.26</var>Title IV of the Higher Education Act of 1965, Public Law 89-329, as amended.<br />
         		<a id="pl.75.27"></a><var>75.27</var>(h) "Public service job" means a full-time job in emergency management; <br />
         		<a id="pl.75.28"></a><var>75.28</var>government, excluding time served as a member of Congress; military service; public <br />
         		<a id="pl.75.29"></a><var>75.29</var>safety; law enforcement; public health, including nurses, nurse practitioners, nurses <br />
         		<a id="pl.75.30"></a><var>75.30</var>in a clinical setting, and full-time professionals engaged in health care practitioner <br />
         		<a id="pl.75.31"></a><var>75.31</var>occupations and health care support occupations, as such terms are defined by the Bureau <br />
         		<a id="pl.75.32"></a><var>75.32</var>of Labor Statistics; social work in a public child or family service agency; public interest <br />
         		<a id="pl.75.33"></a><var>75.33</var>law services including prosecution or public defense or legal advocacy on behalf of <br />
         		<a id="pl.75.34"></a><var>75.34</var>low-income communities at a nonprofit organization; public service for individuals with <br />
         		<a id="pl.75.35"></a><var>75.35</var>disabilities or public service for the elderly; public library sciences; or at an organization <br />
         		<a id="pl.76.1"></a><var>76.1</var>that is described in section 501(c)(3) of the Internal Revenue Code and exempt from <br />
         		<a id="pl.76.2"></a><var>76.2</var>taxation under section 501(a) of the Internal Revenue Code.<br />
         		<a id="pl.76.3"></a><var>76.3</var>(i) "Qualified education loan" has the meaning given in section 221 of the Internal <br />
         		<a id="pl.76.4"></a><var>76.4</var>Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.<br />
         		<a id="pl.76.5"></a><var>76.5</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Credit allowed.</b> (a) An eligible individual is allowed a credit against the <br />
         		<a id="pl.76.6"></a><var>76.6</var>tax due under this chapter. The credit equals a percentage of eligible loan payments in <br />
         		<a id="pl.76.7"></a><var>76.7</var>excess of ten percent of adjusted gross income, up to $1,000, as follows:<br />
         		<a id="pl.76.8"></a><var>76.8</var>(1) for eligible individuals, 50 percent;<br />
         		<a id="pl.76.9"></a><var>76.9</var>(2) for eligible individuals in a public service job, 65 percent; and<br />
         		<a id="pl.76.10"></a><var>76.10</var>(3) for eligible individuals in an education profession, 75 percent.<br />
         		<a id="pl.76.11"></a><var>76.11</var>(b) The credit must not exceed the eligible individual's earned income for the taxable <br />
         		<a id="pl.76.12"></a><var>76.12</var>year.<br />
         		<a id="pl.76.13"></a><var>76.13</var>(c) In the case of a married couple filing a joint return, each spouse is eligible for <br />
         		<a id="pl.76.14"></a><var>76.14</var>the credit in this section.<br />
         		<a id="pl.76.15"></a><var>76.15</var>(d) For a nonresident or part-year resident, the credit must be allocated based on the <br />
         		<a id="pl.76.16"></a><var>76.16</var>percentage calculated under section 290.06, subdivision 2c, paragraph (e).<br />
         		<a id="pl.76.17"></a><var>76.17</var>(e) An eligible individual may receive the credit under this section without regard to <br />
         		<a id="pl.76.18"></a><var>76.18</var>the individual's eligibility for the public service loan forgiveness program under United <br />
         		<a id="pl.76.19"></a><var>76.19</var>States Code, title 20, section 1087e(m).<br />
         		<a id="pl.76.20"></a><var>76.20</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Credit refundable.</b> If the amount of credit that an individual who is a <br />
         		<a id="pl.76.21"></a><var>76.21</var>resident or part-year resident of Minnesota is eligible to receive under this section exceeds <br />
         		<a id="pl.76.22"></a><var>76.22</var>the individual's tax liability under this chapter, the commissioner shall refund the excess <br />
         		<a id="pl.76.23"></a><var>76.23</var>to the individual. For a nonresident taxpayer, the credit may not exceed the taxpayer's <br />
         		<a id="pl.76.24"></a><var>76.24</var>liability for tax under this chapter.<br />
         		<a id="pl.76.25"></a><var>76.25</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Appropriation.</b> An amount sufficient to pay the refunds required by this <br />
         		<a id="pl.76.26"></a><var>76.26</var>section is appropriated to the commissioner from the general fund.<br />
         		<a id="pl.76.27"></a><var>76.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.76.28"></a><var>76.28</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.21.0"></a><a id="pl.76.29"></a><var>76.29</var>&#160;&#160;&#160;&#160;Sec. 21. <b>[290.0684] SECTION 529 COLLEGE SAVINGS PLAN CREDIT.</b><br />
         		<a id="pl.76.30"></a><var>76.30</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> For purposes of this section, the term "federal adjusted <br />
         		<a id="pl.76.31"></a><var>76.31</var>gross income" has the meaning given under section 62(a) of the Internal Revenue Code, <br />
         		<a id="pl.76.32"></a><var>76.32</var>and "nonqualified distribution" means any distribution that is includible in gross income <br />
         		<a id="pl.76.33"></a><var>76.33</var>under section 529 of the Internal Revenue Code.<br />
         		<a id="pl.76.34"></a><var>76.34</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Credit allowed.</b> (a) A credit of up to $500 is allowed to a resident <br />
         		<a id="pl.76.35"></a><var>76.35</var>individual against the tax imposed by this chapter, subject to the limitations in paragraph <br />
         		<a id="pl.77.1"></a><var>77.1</var>(b). The credit is not allowed to an individual who is eligible to be claimed as a dependent, <br />
         		<a id="pl.77.2"></a><var>77.2</var>as defined in sections 151 and 152 of the Internal Revenue Code.<br />
         		<a id="pl.77.3"></a><var>77.3</var>(b) The credit allowed must be calculated by applying the following rates to the <br />
         		<a id="pl.77.4"></a><var>77.4</var>amount contributed to an account in a plan qualifying under section 529 of the Internal <br />
         		<a id="pl.77.5"></a><var>77.5</var>Revenue Code, in a taxable year, reduced by any withdrawals from the account made <br />
         		<a id="pl.77.6"></a><var>77.6</var>during the taxable year, and not including any amounts rolled over from other accounts in <br />
         		<a id="pl.77.7"></a><var>77.7</var>plans qualifying under section 529 of the Internal Revenue Code:<br />
         		<a id="pl.77.8"></a><var>77.8</var>(1) 50 percent for individual filers and married couples filing a joint return who have <br />
         		<a id="pl.77.9"></a><var>77.9</var>federal adjusted gross income of not more than $80,000;<br />
         		<a id="pl.77.10"></a><var>77.10</var>(2) 25 percent for married couples filing a joint return who have federal adjusted <br />
         		<a id="pl.77.11"></a><var>77.11</var>gross income over $80,000, but not more than $100,000;<br />
         		<a id="pl.77.12"></a><var>77.12</var>(3) ten percent for married couples filing a joint return who have federal adjusted <br />
         		<a id="pl.77.13"></a><var>77.13</var>gross income over $100,000, but not more than $120,000; and<br />
         		<a id="pl.77.14"></a><var>77.14</var>(4) five percent for married couples filing a joint return who have federal adjusted <br />
         		<a id="pl.77.15"></a><var>77.15</var>gross income over $120,000, but not more than $160,000.<br />
         		<a id="pl.77.16"></a><var>77.16</var>(c) The income thresholds in paragraph (b), clauses (1) to (4), used to calculate the <br />
         		<a id="pl.77.17"></a><var>77.17</var>credit, must be adjusted for inflation. The commissioner shall adjust by the percentage <br />
         		<a id="pl.77.18"></a><var>77.18</var>determined under the provisions of section 1(f) of the Internal Revenue Code, except that <br />
         		<a id="pl.77.19"></a><var>77.19</var>in section 1(f)(3)(B) the word "2015" is substituted for the word "1992." For 2017, the <br />
         		<a id="pl.77.20"></a><var>77.20</var>commissioner shall then determine the percent change from the 12 months ending on <br />
         		<a id="pl.77.21"></a><var>77.21</var>August 31, 2015, to the 12 months ending on August 31, 2016, and in each subsequent <br />
         		<a id="pl.77.22"></a><var>77.22</var>year, from the 12 months ending on August 31, 2015, to the 12 months ending on August <br />
         		<a id="pl.77.23"></a><var>77.23</var>31 of the year preceding the taxable year. The income thresholds as adjusted for inflation <br />
         		<a id="pl.77.24"></a><var>77.24</var>must be rounded to the nearest $10 amount. If the amount ends in $5, the amount is <br />
         		<a id="pl.77.25"></a><var>77.25</var>rounded up to the nearest $10 amount. The determination of the commissioner under this <br />
         		<a id="pl.77.26"></a><var>77.26</var>subdivision is not a rule under the Administrative Procedure Act including section 14.386.<br />
         		<a id="pl.77.27"></a><var>77.27</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Credit refundable.</b> If the amount of credit that an individual is eligible <br />
         		<a id="pl.77.28"></a><var>77.28</var>to receive under this section exceeds the individual's tax liability under this chapter, the <br />
         		<a id="pl.77.29"></a><var>77.29</var>commissioner shall refund the excess to the individual.<br />
         		<a id="pl.77.30"></a><var>77.30</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Allocation.</b> For a part-year resident, the credit must be allocated based on <br />
         		<a id="pl.77.31"></a><var>77.31</var>the percentage calculated under section 290.06, subdivision 2c, paragraph (e).<br />
         		<a id="pl.77.32"></a><var>77.32</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Recapture of credit.</b> In the case of a nonqualified distribution, the <br />
         		<a id="pl.77.33"></a><var>77.33</var>taxpayer is liable to the commissioner for the lesser of: ten percent of the amount of the <br />
         		<a id="pl.77.34"></a><var>77.34</var>nonqualified distribution, or the sum of credits received under this section for all years.<br />
         		<a id="pl.77.35"></a><var>77.35</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Appropriation.</b> An amount sufficient to pay the refunds required by this <br />
         		<a id="pl.77.36"></a><var>77.36</var>section is appropriated to the commissioner from the general fund.<br />
         		<a id="pl.78.1"></a><var>78.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.78.2"></a><var>78.2</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.22.0"></a><a id="pl.78.3"></a><var>78.3</var>&#160;&#160;&#160;&#160;Sec. 22. <b>[290.0803] SECTION 179 EXPENSING SUBTRACTION.</b><br />
         		<a id="pl.78.4"></a><var>78.4</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Current year allowance.</b> (a) In each of the five tax years <br />
         		<a id="pl.78.5"></a><var>78.5</var>immediately following the tax year in which an addition is required under section 290.01, <br />
         		<a id="pl.78.6"></a><var>78.6</var>subdivision 19a, clause (8), or 19c, clause (13), the current year allowance equals one-fifth <br />
         		<a id="pl.78.7"></a><var>78.7</var>of the addition made by the taxpayer under section 290.01, subdivision 19a, clause (8), <br />
         		<a id="pl.78.8"></a><var>78.8</var>or 19c, clause (13).<br />
         		<a id="pl.78.9"></a><var>78.9</var>(b) In the case of a shareholder of a corporation that is an S corporation, the current <br />
         		<a id="pl.78.10"></a><var>78.10</var>year allowance is reduced by the positive value of any net operating loss under section <br />
         		<a id="pl.78.11"></a><var>78.11</var>172 of the Internal Revenue Code generated for the tax year of the addition and, if the net <br />
         		<a id="pl.78.12"></a><var>78.12</var>operating loss exceeds the addition for the tax year, the current year allowance is zero.<br />
         		<a id="pl.78.13"></a><var>78.13</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Section 179 expensing carryover.</b> For purposes of this section, the current <br />
         		<a id="pl.78.14"></a><var>78.14</var>year allowance determined under subdivision 1 is considered to be the last modification <br />
         		<a id="pl.78.15"></a><var>78.15</var>allowed under section 290.01, subdivision 19b or 19d, in determining net income. If the <br />
         		<a id="pl.78.16"></a><var>78.16</var>amount allowed under subdivision 1 exceeds net income computed without regard to the <br />
         		<a id="pl.78.17"></a><var>78.17</var>current year allowance, then the excess is a section 179 expensing carryover to each of the <br />
         		<a id="pl.78.18"></a><var>78.18</var>ten succeeding taxable years. The entire amount of the section 179 expensing carryover <br />
         		<a id="pl.78.19"></a><var>78.19</var>is carried first to the earliest taxable year to which the section 179 expensing carryover <br />
         		<a id="pl.78.20"></a><var>78.20</var>may be carried and then to each successive year to which the section 179 expensing <br />
         		<a id="pl.78.21"></a><var>78.21</var>carryover may be carried.<br />
         		<a id="pl.78.22"></a><var>78.22</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Section 179 expensing subtraction.</b> A taxpayer is allowed a section 179 <br />
         		<a id="pl.78.23"></a><var>78.23</var>expensing subtraction from federal taxable income under section 290.01, subdivision 19b <br />
         		<a id="pl.78.24"></a><var>78.24</var>or 19d. The subtraction equals the sum of:<br />
         		<a id="pl.78.25"></a><var>78.25</var>(1) the current year allowance determined under subdivision 1; and<br />
         		<a id="pl.78.26"></a><var>78.26</var>(2) any section 179 expensing carryover from prior taxable years determined under <br />
         		<a id="pl.78.27"></a><var>78.27</var>subdivision 2.<br />
         		<a id="pl.78.28"></a><var>78.28</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.78.29"></a><var>78.29</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.23.0"></a><a id="pl.78.30"></a><var>78.30</var>&#160;&#160;&#160;&#160;Sec. 23. Minnesota Statutes 2014, section 290.091, subdivision 2, is amended to read:<br />
         		<a id="pl.78.31"></a><var>78.31</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Definitions.</b> For purposes of the tax imposed by this section, the following <br />
         		<a id="pl.78.32"></a><var>78.32</var>terms have the meanings given:<br />
         		<a id="pl.78.33"></a><var>78.33</var>&#160;&#160;&#160;&#160;(a) "Alternative minimum taxable income" means the sum of the following for <br />
         		<a id="pl.78.34"></a><var>78.34</var>the taxable year:<br />
         		<a id="pl.79.1"></a><var>79.1</var>&#160;&#160;&#160;&#160;(1) the taxpayer's federal alternative minimum taxable income as defined in section <br />
         		<a id="pl.79.2"></a><var>79.2</var>55(b)(2) of the Internal Revenue Code;<br />
         		<a id="pl.79.3"></a><var>79.3</var>&#160;&#160;&#160;&#160;(2) the taxpayer's itemized deductions allowed in computing federal alternative <br />
         		<a id="pl.79.4"></a><var>79.4</var>minimum taxable income, but excluding:<br />
         		<a id="pl.79.5"></a><var>79.5</var>&#160;&#160;&#160;&#160;(i) the charitable contribution deduction under section 170 of the Internal Revenue <br />
         		<a id="pl.79.6"></a><var>79.6</var>Code;<br />
         		<a id="pl.79.7"></a><var>79.7</var>&#160;&#160;&#160;&#160;(ii) the medical expense deduction;<br />
         		<a id="pl.79.8"></a><var>79.8</var>&#160;&#160;&#160;&#160;(iii) the casualty, theft, and disaster loss deduction; and<br />
         		<a id="pl.79.9"></a><var>79.9</var>&#160;&#160;&#160;&#160;(iv) the impairment-related work expenses of a disabled person;<br />
         		<a id="pl.79.10"></a><var>79.10</var>&#160;&#160;&#160;&#160;(3) for depletion allowances computed under section 613A(c) of the Internal <br />
         		<a id="pl.79.11"></a><var>79.11</var>Revenue Code, with respect to each property (as defined in section 614 of the Internal <br />
         		<a id="pl.79.12"></a><var>79.12</var>Revenue Code), to the extent not included in federal alternative minimum taxable income, <br />
         		<a id="pl.79.13"></a><var>79.13</var>the excess of the deduction for depletion allowable under section 611 of the Internal <br />
         		<a id="pl.79.14"></a><var>79.14</var>Revenue Code for the taxable year over the adjusted basis of the property at the end of the <br />
         		<a id="pl.79.15"></a><var>79.15</var>taxable year (determined without regard to the depletion deduction for the taxable year);<br />
         		<a id="pl.79.16"></a><var>79.16</var>&#160;&#160;&#160;&#160;(4) to the extent not included in federal alternative minimum taxable income, the <br />
         		<a id="pl.79.17"></a><var>79.17</var>amount of the tax preference for intangible drilling cost under section 57(a)(2) of the <br />
         		<a id="pl.79.18"></a><var>79.18</var>Internal Revenue Code determined without regard to subparagraph (E);<br />
         		<a id="pl.79.19"></a><var>79.19</var>&#160;&#160;&#160;&#160;(5) to the extent not included in federal alternative minimum taxable income, the <br />
         		<a id="pl.79.20"></a><var>79.20</var>amount of interest income as provided by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1); and<br />
         		<a id="pl.79.21"></a><var>79.21</var>&#160;&#160;&#160;&#160;(6) the amount of addition required by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (7) <br />
         		<a id="pl.79.22"></a><var>79.22</var>to (9), and (11) to (14);<br />
         		<a id="pl.79.23"></a><var>79.23</var>&#160;&#160;&#160;&#160;less the sum of the amounts determined under the following:<br />
         		<a id="pl.79.24"></a><var>79.24</var>&#160;&#160;&#160;&#160;(1) interest income as defined in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1);<br />
         		<a id="pl.79.25"></a><var>79.25</var>&#160;&#160;&#160;&#160;(2) an overpayment of state income tax as provided by section 
         <statute_ref>290.01, subdivision <br />
            		<a id="pl.79.26"></a><var>79.26</var>19b
         </statute_ref>, clause (2), to the extent included in federal alternative minimum taxable income;<br />
         		<a id="pl.79.27"></a><var>79.27</var>&#160;&#160;&#160;&#160;(3) the amount of investment interest paid or accrued within the taxable year on <br />
         		<a id="pl.79.28"></a><var>79.28</var>indebtedness to the extent that the amount does not exceed net investment income, as <br />
         		<a id="pl.79.29"></a><var>79.29</var>defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include <br />
         		<a id="pl.79.30"></a><var>79.30</var>amounts deducted in computing federal adjusted gross income;<br />
         		<a id="pl.79.31"></a><var>79.31</var>&#160;&#160;&#160;&#160;(4) amounts subtracted from federal taxable income as provided by section 
         <statute_ref>290.01, <br />
            		<a id="pl.79.32"></a><var>79.32</var>subdivision 19b
         </statute_ref>, clauses (6), (8) to (14), (16), and (21) (22); and<br />
         		<a id="pl.79.33"></a><var>79.33</var>(5) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br />
            		<a id="pl.79.34"></a><var>79.34</var>11
         </statute_ref>, paragraph (c).<br />
         		<a id="pl.79.35"></a><var>79.35</var>&#160;&#160;&#160;&#160;In the case of an estate or trust, alternative minimum taxable income must be <br />
         		<a id="pl.79.36"></a><var>79.36</var>computed as provided in section 59(c) of the Internal Revenue Code.<br />
         		<a id="pl.80.1"></a><var>80.1</var>&#160;&#160;&#160;&#160;(b) "Investment interest" means investment interest as defined in section 163(d)(3) <br />
         		<a id="pl.80.2"></a><var>80.2</var>of the Internal Revenue Code.<br />
         		<a id="pl.80.3"></a><var>80.3</var>&#160;&#160;&#160;&#160;(c) "Net minimum tax" means the minimum tax imposed by this section.<br />
         		<a id="pl.80.4"></a><var>80.4</var>&#160;&#160;&#160;&#160;(d) "Regular tax" means the tax that would be imposed under this chapter (without <br />
         		<a id="pl.80.5"></a><var>80.5</var>regard to this section and section 290.032), reduced by the sum of the nonrefundable <br />
         		<a id="pl.80.6"></a><var>80.6</var>credits allowed under this chapter.<br />
         		<a id="pl.80.7"></a><var>80.7</var>&#160;&#160;&#160;&#160;(e) "Tentative minimum tax" equals 
         <statute_ref>6.75</statute_ref> percent of alternative minimum taxable <br />
         		<a id="pl.80.8"></a><var>80.8</var>income after subtracting the exemption amount determined under subdivision 3.<br />
         		<a id="pl.80.9"></a><var>80.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.80.10"></a><var>80.10</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.3.24.0"></a><a id="pl.80.11"></a><var>80.11</var>&#160;&#160;&#160;&#160;Sec. 24. Minnesota Statutes 2015 Supplement, section 290A.03, subdivision 15, <br />
         		<a id="pl.80.12"></a><var>80.12</var>is amended to read:<br />
         		<a id="pl.80.13"></a><var>80.13</var>&#160;&#160;&#160;&#160;Subd. 15. <b>Internal Revenue Code.</b>  "Internal Revenue Code" means the Internal <br />
         		<a id="pl.80.14"></a><var>80.14</var>Revenue Code of 1986, as amended through December 31, 2014 2015.<br />
         		<a id="pl.80.15"></a><var>80.15</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for property tax refunds <br />
         		<a id="pl.80.16"></a><var>80.16</var>based on property taxes payable after December 31, 2015, and rent paid after December <br />
         		<a id="pl.80.17"></a><var>80.17</var>31, 2014.<br />
         		<br />
         		<a id="bill.3.25.0"></a><a id="pl.80.18"></a><var>80.18</var>&#160;&#160;&#160;&#160;Sec. 25. Minnesota Statutes 2015 Supplement, section 291.005, subdivision 1, is <br />
         		<a id="pl.80.19"></a><var>80.19</var>amended to read:<br />
         		<a id="pl.80.20"></a><var>80.20</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Scope.</b> Unless the context otherwise clearly requires, the following <br />
         		<a id="pl.80.21"></a><var>80.21</var>terms used in this chapter shall have the following meanings:<br />
         		<a id="pl.80.22"></a><var>80.22</var>&#160;&#160;&#160;&#160;(1) "Commissioner" means the commissioner of revenue or any person to whom the <br />
         		<a id="pl.80.23"></a><var>80.23</var>commissioner has delegated functions under this chapter.<br />
         		<a id="pl.80.24"></a><var>80.24</var>&#160;&#160;&#160;&#160;(2) "Federal gross estate" means the gross estate of a decedent as required to be valued <br />
         		<a id="pl.80.25"></a><var>80.25</var>and otherwise determined for federal estate tax purposes under the Internal Revenue Code, <br />
         		<a id="pl.80.26"></a><var>80.26</var>increased by the value of any property in which the decedent had a qualifying income <br />
         		<a id="pl.80.27"></a><var>80.27</var>interest for life and for which an election was made under section 
         <statute_ref>291.03, subdivision 1d</statute_ref>, <br />
         		<a id="pl.80.28"></a><var>80.28</var>for Minnesota estate tax purposes, but was not made for federal estate tax purposes.<br />
         		<a id="pl.80.29"></a><var>80.29</var>&#160;&#160;&#160;&#160;(3) "Internal Revenue Code" means the United States Internal Revenue Code of <br />
         		<a id="pl.80.30"></a><var>80.30</var>1986, as amended through December 31, 2014 2015.<br />
         		<a id="pl.80.31"></a><var>80.31</var>&#160;&#160;&#160;&#160;(4) "Minnesota gross estate" means the federal gross estate of a decedent after <br />
         		<a id="pl.80.32"></a><var>80.32</var>(a) excluding therefrom any property included in the estate which has its situs outside <br />
         		<a id="pl.80.33"></a><var>80.33</var>Minnesota, and (b) including any property omitted from the federal gross estate which <br />
         		<a id="pl.81.1"></a><var>81.1</var>is includable in the estate, has its situs in Minnesota, and was not disclosed to federal <br />
         		<a id="pl.81.2"></a><var>81.2</var>taxing authorities.<br />
         		<a id="pl.81.3"></a><var>81.3</var>&#160;&#160;&#160;&#160;(5) "Nonresident decedent" means an individual whose domicile at the time of <br />
         		<a id="pl.81.4"></a><var>81.4</var>death was not in Minnesota.<br />
         		<a id="pl.81.5"></a><var>81.5</var>&#160;&#160;&#160;&#160;(6) "Personal representative" means the executor, administrator or other person <br />
         		<a id="pl.81.6"></a><var>81.6</var>appointed by the court to administer and dispose of the property of the decedent. If there <br />
         		<a id="pl.81.7"></a><var>81.7</var>is no executor, administrator or other person appointed, qualified, and acting within this <br />
         		<a id="pl.81.8"></a><var>81.8</var>state, then any person in actual or constructive possession of any property having a situs in <br />
         		<a id="pl.81.9"></a><var>81.9</var>this state which is included in the federal gross estate of the decedent shall be deemed <br />
         		<a id="pl.81.10"></a><var>81.10</var>to be a personal representative to the extent of the property and the Minnesota estate tax <br />
         		<a id="pl.81.11"></a><var>81.11</var>due with respect to the property.<br />
         		<a id="pl.81.12"></a><var>81.12</var>&#160;&#160;&#160;&#160;(7) "Resident decedent" means an individual whose domicile at the time of death <br />
         		<a id="pl.81.13"></a><var>81.13</var>was in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and <br />
         		<a id="pl.81.14"></a><var>81.14</var>(d), apply to determinations of domicile under this chapter.<br />
         		<a id="pl.81.15"></a><var>81.15</var>&#160;&#160;&#160;&#160;(8) "Situs of property" means, with respect to:<br />
         		<a id="pl.81.16"></a><var>81.16</var>&#160;&#160;&#160;&#160;(i) real property, the state or country in which it is located;<br />
         		<a id="pl.81.17"></a><var>81.17</var>&#160;&#160;&#160;&#160;(ii) tangible personal property, the state or country in which it was normally kept <br />
         		<a id="pl.81.18"></a><var>81.18</var>or located at the time of the decedent's death or for a gift of tangible personal property <br />
         		<a id="pl.81.19"></a><var>81.19</var>within three years of death, the state or country in which it was normally kept or located <br />
         		<a id="pl.81.20"></a><var>81.20</var>when the gift was executed;<br />
         		<a id="pl.81.21"></a><var>81.21</var>&#160;&#160;&#160;&#160;(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue <br />
         		<a id="pl.81.22"></a><var>81.22</var>Code, owned by a nonresident decedent and that is normally kept or located in this state <br />
         		<a id="pl.81.23"></a><var>81.23</var>because it is on loan to an organization, qualifying as exempt from taxation under section <br />
         		<a id="pl.81.24"></a><var>81.24</var>501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is <br />
         		<a id="pl.81.25"></a><var>81.25</var>deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and<br />
         		<a id="pl.81.26"></a><var>81.26</var>&#160;&#160;&#160;&#160;(iv) intangible personal property, the state or country in which the decedent was <br />
         		<a id="pl.81.27"></a><var>81.27</var>domiciled at death or for a gift of intangible personal property within three years of death, <br />
         		<a id="pl.81.28"></a><var>81.28</var>the state or country in which the decedent was domiciled when the gift was executed.<br />
         		<a id="pl.81.29"></a><var>81.29</var>&#160;&#160;&#160;&#160;For a nonresident decedent with an ownership interest in a pass-through entity with <br />
         		<a id="pl.81.30"></a><var>81.30</var>assets that include real or tangible personal property, situs of the real or tangible personal <br />
         		<a id="pl.81.31"></a><var>81.31</var>property, including qualified works of art, is determined as if the pass-through entity does <br />
         		<a id="pl.81.32"></a><var>81.32</var>not exist and the real or tangible personal property is personally owned by the decedent. <br />
         		<a id="pl.81.33"></a><var>81.33</var>If the pass-through entity is owned by a person or persons in addition to the decedent, <br />
         		<a id="pl.81.34"></a><var>81.34</var>ownership of the property is attributed to the decedent in proportion to the decedent's <br />
         		<a id="pl.81.35"></a><var>81.35</var>capital ownership share of the pass-through entity.<br />
         		<a id="pl.81.36"></a><var>81.36</var>(9) "Pass-through entity" includes the following:<br />
         		<a id="pl.82.1"></a><var>82.1</var>(i) an entity electing S corporation status under section 1362 of the Internal Revenue <br />
         		<a id="pl.82.2"></a><var>82.2</var>Code;<br />
         		<a id="pl.82.3"></a><var>82.3</var>(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;<br />
         		<a id="pl.82.4"></a><var>82.4</var>(iii) a single-member limited liability company or similar entity, regardless of <br />
         		<a id="pl.82.5"></a><var>82.5</var>whether it is taxed as an association or is disregarded for federal income tax purposes <br />
         		<a id="pl.82.6"></a><var>82.6</var>under Code of Federal Regulations, title 26, section 301.7701-3; or<br />
         		<a id="pl.82.7"></a><var>82.7</var>(iv) a trust to the extent the property is includible in the decedent's federal gross <br />
         		<a id="pl.82.8"></a><var>82.8</var>estate; but excludes<br />
         		<a id="pl.82.9"></a><var>82.9</var>&#160;&#160;&#160;&#160;(v) an entity whose ownership interest securities are traded on an exchange regulated <br />
         		<a id="pl.82.10"></a><var>82.10</var>by the Securities and Exchange Commission as a national securities exchange under <br />
         		<a id="pl.82.11"></a><var>82.11</var>section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.<br />
         		<a id="pl.82.12"></a><var>82.12</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br />
         		<a id="pl.82.13"></a><var>82.13</var>dying after December 31, 2015.<br />
         		<br />
         		<a id="bill.3.26.0"></a><a id="pl.82.14"></a><var>82.14</var>&#160;&#160;&#160;&#160;Sec. 26. Minnesota Statutes 2014, section 291.03, is amended by adding a subdivision <br />
         		<a id="pl.82.15"></a><var>82.15</var>to read:<br />
         		<a id="pl.82.16"></a><var>82.16</var>&#160;&#160;&#160;&#160;Subd. 12. <b>Certain dispositions to government entities.</b> Notwithstanding any <br />
         		<a id="pl.82.17"></a><var>82.17</var>provision of this section, no taxpayer is disqualified for the subtraction provided under <br />
         		<a id="pl.82.18"></a><var>82.18</var>section 291.016, subdivision 3, nor is any taxpayer liable for the recapture tax provided in <br />
         		<a id="pl.82.19"></a><var>82.19</var>subdivision 11, solely because the state, any local government unit, or any other entity <br />
         		<a id="pl.82.20"></a><var>82.20</var>that has the power of eminent domain acquires title or possession of the land for a public <br />
         		<a id="pl.82.21"></a><var>82.21</var>purpose within the three-year holding period.<br />
         		<a id="pl.82.22"></a><var>82.22</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br />
         		<a id="pl.82.23"></a><var>82.23</var>dying after June 30, 2011.<br />
         		<br />
         		<a id="bill.3.27.0"></a><a id="pl.82.24"></a><var>82.24</var>&#160;&#160;&#160;&#160;Sec. 27. <b>AMENDED RETURNS.</b><br />
         		<a id="pl.82.25"></a><var>82.25</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Certain IRA rollovers.</b> An individual who excludes an amount <br />
         		<a id="pl.82.26"></a><var>82.26</var>from net income in a prior taxable year through rollover of an airline payment amount to <br />
         		<a id="pl.82.27"></a><var>82.27</var>a traditional IRA, as authorized under Public Law 114-113, division Q, title III, section <br />
         		<a id="pl.82.28"></a><var>82.28</var>307, may file an amended individual income tax return and claim for refund of state taxes <br />
         		<a id="pl.82.29"></a><var>82.29</var>as provided under Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by <br />
         		<a id="pl.82.30"></a><var>82.30</var>September 1, 2016.<br />
         		<a id="pl.82.31"></a><var>82.31</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Exclusion for certain incarcerated individuals.</b> An individual who <br />
         		<a id="pl.82.32"></a><var>82.32</var>excludes from net income in a prior taxable year civil damages, restitution, or other <br />
         		<a id="pl.83.1"></a><var>83.1</var>monetary award received as compensation for a wrongful incarceration, as authorized <br />
         		<a id="pl.83.2"></a><var>83.2</var>under Public Law 114-113, division Q, title III, section 304, may file an amended <br />
         		<a id="pl.83.3"></a><var>83.3</var>individual income tax return and claim for refund of state taxes as provided under <br />
         		<a id="pl.83.4"></a><var>83.4</var>Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September 1, 2016.<br />
         		<a id="pl.83.5"></a><var>83.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.28.0"></a><a id="pl.83.6"></a><var>83.6</var>&#160;&#160;&#160;&#160;Sec. 28. <b>ESTATE TAX REVIEW; TEMPORARY LIMIT ON ASSESSMENTS.</b><br />
         		<a id="pl.83.7"></a><var>83.7</var>(a) The commissioner of revenue shall:<br />
         		<a id="pl.83.8"></a><var>83.8</var>(1) review the estate tax's definition of qualified farm property and its linkage to the <br />
         		<a id="pl.83.9"></a><var>83.9</var>property tax classification of the property during the three-year period following the <br />
         		<a id="pl.83.10"></a><var>83.10</var>death of the decedent; and<br />
         		<a id="pl.83.11"></a><var>83.11</var>(2) by February 1, 2017, report to the committees of the house of representatives <br />
         		<a id="pl.83.12"></a><var>83.12</var>and the senate with jurisdiction over taxes on alternative methods of ensuring that the <br />
         		<a id="pl.83.13"></a><var>83.13</var>use of the property by qualified heirs during the three-year period after the decedent's <br />
         		<a id="pl.83.14"></a><var>83.14</var>death is consistent with the purpose of limiting the subtraction to properties where its use <br />
         		<a id="pl.83.15"></a><var>83.15</var>continues that of the decedent without any material change in its use by the qualified heirs <br />
         		<a id="pl.83.16"></a><var>83.16</var>and its ownership is consistent with maintaining family ownership of the farm.<br />
         		<a id="pl.83.17"></a><var>83.17</var>(b) Prior to June 1, 2017, the commissioner of revenue shall not assess recapture tax <br />
         		<a id="pl.83.18"></a><var>83.18</var>under Minnesota Statutes, section 291.03, subdivision 11, for a change in the property tax <br />
         		<a id="pl.83.19"></a><var>83.19</var>classification of agricultural homestead property if the following conditions are satisfied:<br />
         		<a id="pl.83.20"></a><var>83.20</var>(1) the property is held in a trust of which the surviving spouse is a beneficiary; and<br />
         		<a id="pl.83.21"></a><var>83.21</var>(2) the property receives partial homestead classification because a beneficiary of <br />
         		<a id="pl.83.22"></a><var>83.22</var>the trust is the owner of another agricultural homestead.<br />
         		<a id="pl.83.23"></a><var>83.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.29.0"></a><a id="pl.83.24"></a><var>83.24</var>&#160;&#160;&#160;&#160;Sec. 29. <b>INDIVIDUAL INCOME TAX COLLECTION ACTION PROHIBITED.</b><br />
         		<a id="pl.83.25"></a><var>83.25</var>Notwithstanding any law to the contrary, the commissioner of revenue shall not <br />
         		<a id="pl.83.26"></a><var>83.26</var>increase the amount due or decrease the refund for an individual income tax return for <br />
         		<a id="pl.83.27"></a><var>83.27</var>the taxable year beginning after December 31, 2014, and before January 1, 2016, to the <br />
         		<a id="pl.83.28"></a><var>83.28</var>extent the amount due was understated or the refund was overstated because the taxpayer <br />
         		<a id="pl.83.29"></a><var>83.29</var>calculated the tax or refund based on the Internal Revenue Code, as amended through <br />
         		<a id="pl.83.30"></a><var>83.30</var>December 31, 2014, rather than based on the Internal Revenue Code, as amended through <br />
         		<a id="pl.83.31"></a><var>83.31</var>December 31, 2015, as provided in this act. <br />
         		<a id="pl.83.32"></a><var>83.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.30.0"></a><a id="pl.84.1"></a><var>84.1</var>&#160;&#160;&#160;&#160;Sec. 30. <b> REPEALER.</b><br />
         		<a id="pl.84.2"></a><var>84.2</var>Minnesota Statutes 2014, section 290.067, subdivisions 2 and 2a, are repealed.<br />
         		<a id="pl.84.3"></a><var>84.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.84.4"></a><var>84.4</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.4.0.0"></a><div class="xtend_ce"><a id="pl.84.5"></a><var>84.5</var><b>ARTICLE 4</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.84.6"></a><var>84.6</var><b>SALES AND USE TAXES</b><br />
            		
         </div><br />
         		<a id="bill.4.1.0"></a><a id="pl.84.7"></a><var>84.7</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2014, section 297A.61, subdivision 3, is amended to read:<br />
         		<a id="pl.84.8"></a><var>84.8</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Sale and purchase.</b> (a) "Sale" and "purchase" include, but are not limited <br />
         		<a id="pl.84.9"></a><var>84.9</var>to, each of the transactions listed in this subdivision. In applying the provisions of this <br />
         		<a id="pl.84.10"></a><var>84.10</var>chapter, the terms "tangible personal property" and "retail sale" include the taxable <br />
         		<a id="pl.84.11"></a><var>84.11</var>services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision <br />
         		<a id="pl.84.12"></a><var>84.12</var>of these taxable services, unless specifically provided otherwise. Services performed by <br />
         		<a id="pl.84.13"></a><var>84.13</var>an employee for an employer are not taxable. Services performed by a partnership or <br />
         		<a id="pl.84.14"></a><var>84.14</var>association for another partnership or association are not taxable if one of the entities owns <br />
         		<a id="pl.84.15"></a><var>84.15</var>or controls more than 80 percent of the voting power of the equity interest in the other <br />
         		<a id="pl.84.16"></a><var>84.16</var>entity. Services performed between members of an affiliated group of corporations are not <br />
         		<a id="pl.84.17"></a><var>84.17</var>taxable. For purposes of the preceding sentence, "affiliated group of corporations" means <br />
         		<a id="pl.84.18"></a><var>84.18</var>those entities that would be classified as members of an affiliated group as defined under <br />
         		<a id="pl.84.19"></a><var>84.19</var>United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).<br />
         		<a id="pl.84.20"></a><var>84.20</var>&#160;&#160;&#160;&#160;(b) Sale and purchase include:<br />
         		<a id="pl.84.21"></a><var>84.21</var>&#160;&#160;&#160;&#160;(1) any transfer of title or possession, or both, of tangible personal property, whether <br />
         		<a id="pl.84.22"></a><var>84.22</var>absolutely or conditionally, for a consideration in money or by exchange or barter; and<br />
         		<a id="pl.84.23"></a><var>84.23</var>&#160;&#160;&#160;&#160;(2) the leasing of or the granting of a license to use or consume, for a consideration <br />
         		<a id="pl.84.24"></a><var>84.24</var>in money or by exchange or barter, tangible personal property, other than a manufactured <br />
         		<a id="pl.84.25"></a><var>84.25</var>home used for residential purposes for a continuous period of 30 days or more.<br />
         		<a id="pl.84.26"></a><var>84.26</var>&#160;&#160;&#160;&#160;(c) Sale and purchase include the production, fabrication, printing, or processing of <br />
         		<a id="pl.84.27"></a><var>84.27</var>tangible personal property for a consideration for consumers who furnish either directly or <br />
         		<a id="pl.84.28"></a><var>84.28</var>indirectly the materials used in the production, fabrication, printing, or processing.<br />
         		<a id="pl.84.29"></a><var>84.29</var>&#160;&#160;&#160;&#160;(d) Sale and purchase include the preparing for a consideration of food. <br />
         		<a id="pl.84.30"></a><var>84.30</var>Notwithstanding section 
         <statute_ref>297A.67, subdivision 2</statute_ref>, taxable food includes, but is not limited <br />
         		<a id="pl.84.31"></a><var>84.31</var>to, the following:<br />
         		<a id="pl.84.32"></a><var>84.32</var>&#160;&#160;&#160;&#160;(1) prepared food sold by the retailer;<br />
         		<a id="pl.84.33"></a><var>84.33</var>&#160;&#160;&#160;&#160;(2) soft drinks;<br />
         		<a id="pl.84.34"></a><var>84.34</var>&#160;&#160;&#160;&#160;(3) candy;<br />
         		<a id="pl.84.35"></a><var>84.35</var>&#160;&#160;&#160;&#160;(4) dietary supplements; and<br />
         		<a id="pl.85.1"></a><var>85.1</var>&#160;&#160;&#160;&#160;(5) all food sold through vending machines.<br />
         		<a id="pl.85.2"></a><var>85.2</var>&#160;&#160;&#160;&#160;(e) A sale and a purchase includes the furnishing for a consideration of electricity, <br />
         		<a id="pl.85.3"></a><var>85.3</var>gas, water, or steam for use or consumption within this state.<br />
         		<a id="pl.85.4"></a><var>85.4</var>&#160;&#160;&#160;&#160;(f) A sale and a purchase includes the transfer for a consideration of prewritten <br />
         		<a id="pl.85.5"></a><var>85.5</var>computer software whether delivered electronically, by load and leave, or otherwise.<br />
         		<a id="pl.85.6"></a><var>85.6</var>&#160;&#160;&#160;&#160;(g) A sale and a purchase includes the furnishing for a consideration of the following <br />
         		<a id="pl.85.7"></a><var>85.7</var>services:<br />
         		<a id="pl.85.8"></a><var>85.8</var>&#160;&#160;&#160;&#160;(1) the privilege of admission to places of amusement, recreational areas, or athletic <br />
         		<a id="pl.85.9"></a><var>85.9</var>events, and the making available of amusement devices, tanning facilities, reducing <br />
         		<a id="pl.85.10"></a><var>85.10</var>salons, steam baths, health clubs, and spas or athletic facilities;<br />
         		<a id="pl.85.11"></a><var>85.11</var>&#160;&#160;&#160;&#160;(2) lodging and related services by a hotel, rooming house, resort, campground, <br />
         		<a id="pl.85.12"></a><var>85.12</var>motel, or trailer camp, including furnishing the guest of the facility with access to <br />
         		<a id="pl.85.13"></a><var>85.13</var>telecommunication services, and the granting of any similar license to use real property in <br />
         		<a id="pl.85.14"></a><var>85.14</var>a specific facility, other than the renting or leasing of it for a continuous period of 30 days <br />
         		<a id="pl.85.15"></a><var>85.15</var>or more under an enforceable written agreement that may not be terminated without prior <br />
         		<a id="pl.85.16"></a><var>85.16</var>notice and including accommodations intermediary services provided in connection with <br />
         		<a id="pl.85.17"></a><var>85.17</var>other services provided under this clause;<br />
         		<a id="pl.85.18"></a><var>85.18</var>&#160;&#160;&#160;&#160;(3) nonresidential parking services, whether on a contractual, hourly, or other <br />
         		<a id="pl.85.19"></a><var>85.19</var>periodic basis, except for parking at a meter;<br />
         		<a id="pl.85.20"></a><var>85.20</var>&#160;&#160;&#160;&#160;(4) the granting of membership in a club, association, or other organization if:<br />
         		<a id="pl.85.21"></a><var>85.21</var>&#160;&#160;&#160;&#160;(i) the club, association, or other organization makes available for the use of its <br />
         		<a id="pl.85.22"></a><var>85.22</var>members sports and athletic facilities, without regard to whether a separate charge is <br />
         		<a id="pl.85.23"></a><var>85.23</var>assessed for use of the facilities; and<br />
         		<a id="pl.85.24"></a><var>85.24</var>&#160;&#160;&#160;&#160;(ii) use of the sports and athletic facility is not made available to the general public <br />
         		<a id="pl.85.25"></a><var>85.25</var>on the same basis as it is made available to members.<br />
         		<a id="pl.85.26"></a><var>85.26</var>Granting of membership means both onetime initiation fees and periodic membership <br />
         		<a id="pl.85.27"></a><var>85.27</var>dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and <br />
         		<a id="pl.85.28"></a><var>85.28</var>squash courts; basketball and volleyball facilities; running tracks; exercise equipment; <br />
         		<a id="pl.85.29"></a><var>85.29</var>swimming pools; and other similar athletic or sports facilities;<br />
         		<a id="pl.85.30"></a><var>85.30</var>&#160;&#160;&#160;&#160;(5) delivery of aggregate materials by a third party, excluding delivery of aggregate <br />
         		<a id="pl.85.31"></a><var>85.31</var>material used in road construction; and delivery of concrete block by a third party if the <br />
         		<a id="pl.85.32"></a><var>85.32</var>delivery would be subject to the sales tax if provided by the seller of the concrete block. <br />
         		<a id="pl.85.33"></a><var>85.33</var>For purposes of this clause, "road construction" means construction of:<br />
         		<a id="pl.85.34"></a><var>85.34</var>&#160;&#160;&#160;&#160;(i) public roads;<br />
         		<a id="pl.85.35"></a><var>85.35</var>&#160;&#160;&#160;&#160;(ii) cartways; and<br />
         		<a id="pl.86.1"></a><var>86.1</var>&#160;&#160;&#160;&#160;(iii) private roads in townships located outside of the seven-county metropolitan area <br />
         		<a id="pl.86.2"></a><var>86.2</var>up to the point of the emergency response location sign; and<br />
         		<a id="pl.86.3"></a><var>86.3</var>&#160;&#160;&#160;&#160;(6) services as provided in this clause:<br />
         		<a id="pl.86.4"></a><var>86.4</var>&#160;&#160;&#160;&#160;(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, <br />
         		<a id="pl.86.5"></a><var>86.5</var>and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, <br />
         		<a id="pl.86.6"></a><var>86.6</var>drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not <br />
         		<a id="pl.86.7"></a><var>86.7</var>include services provided by coin operated facilities operated by the customer;<br />
         		<a id="pl.86.8"></a><var>86.8</var>&#160;&#160;&#160;&#160;(ii) motor vehicle washing, waxing, and cleaning services, including services <br />
         		<a id="pl.86.9"></a><var>86.9</var>provided by coin operated facilities operated by the customer, and rustproofing, <br />
         		<a id="pl.86.10"></a><var>86.10</var>undercoating, and towing of motor vehicles;<br />
         		<a id="pl.86.11"></a><var>86.11</var>&#160;&#160;&#160;&#160;(iii) building and residential cleaning, maintenance, and disinfecting services and <br />
         		<a id="pl.86.12"></a><var>86.12</var>pest control and exterminating services;<br />
         		<a id="pl.86.13"></a><var>86.13</var>&#160;&#160;&#160;&#160;(iv) detective, security, burglar, fire alarm, and armored car services; but not <br />
         		<a id="pl.86.14"></a><var>86.14</var>including services performed within the jurisdiction they serve by off-duty licensed peace <br />
         		<a id="pl.86.15"></a><var>86.15</var>officers as defined in section 
         <statute_ref>626.84, subdivision 1</statute_ref>, or services provided by a nonprofit <br />
         		<a id="pl.86.16"></a><var>86.16</var>organization or any organization at the direction of a county for monitoring and electronic <br />
         		<a id="pl.86.17"></a><var>86.17</var>surveillance of persons placed on in-home detention pursuant to court order or under the <br />
         		<a id="pl.86.18"></a><var>86.18</var>direction of the Minnesota Department of Corrections;<br />
         		<a id="pl.86.19"></a><var>86.19</var>&#160;&#160;&#160;&#160;(v) pet grooming services;<br />
         		<a id="pl.86.20"></a><var>86.20</var>&#160;&#160;&#160;&#160;(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting <br />
         		<a id="pl.86.21"></a><var>86.21</var>and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor <br />
         		<a id="pl.86.22"></a><var>86.22</var>plant care; tree, bush, shrub, and stump removal, except when performed as part of a land <br />
         		<a id="pl.86.23"></a><var>86.23</var>clearing contract as defined in section 
         <statute_ref>297A.68, subdivision 40</statute_ref>; and tree trimming for <br />
         		<a id="pl.86.24"></a><var>86.24</var>public utility lines. Services performed under a construction contract for the installation of <br />
         		<a id="pl.86.25"></a><var>86.25</var>shrubbery, plants, sod, trees, bushes, and similar items are not taxable;<br />
         		<a id="pl.86.26"></a><var>86.26</var>&#160;&#160;&#160;&#160;(vii) massages, except when provided by a licensed health care facility or <br />
         		<a id="pl.86.27"></a><var>86.27</var>professional or upon written referral from a licensed health care facility or professional for <br />
         		<a id="pl.86.28"></a><var>86.28</var>treatment of illness, injury, or disease; and<br />
         		<a id="pl.86.29"></a><var>86.29</var>&#160;&#160;&#160;&#160;(viii) the furnishing of lodging, board, and care services for animals in kennels and <br />
         		<a id="pl.86.30"></a><var>86.30</var>other similar arrangements, but excluding veterinary and horse boarding services.<br />
         		<a id="pl.86.31"></a><var>86.31</var>&#160;&#160;&#160;&#160;(h) A sale and a purchase includes the furnishing for a consideration of tangible <br />
         		<a id="pl.86.32"></a><var>86.32</var>personal property or taxable services by the United States or any of its agencies or <br />
         		<a id="pl.86.33"></a><var>86.33</var>instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political <br />
         		<a id="pl.86.34"></a><var>86.34</var>subdivisions.<br />
         		<a id="pl.86.35"></a><var>86.35</var>&#160;&#160;&#160;&#160;(i) A sale and a purchase includes the furnishing for a consideration of <br />
         		<a id="pl.86.36"></a><var>86.36</var>telecommunications services, ancillary services associated with telecommunication <br />
         		<a id="pl.87.1"></a><var>87.1</var>services, and pay television services. Telecommunication services include, but are <br />
         		<a id="pl.87.2"></a><var>87.2</var>not limited to, the following services, as defined in section 
         <statute_ref>297A.669</statute_ref>: air-to-ground <br />
         		<a id="pl.87.3"></a><var>87.3</var>radiotelephone service, mobile telecommunication service, postpaid calling service, <br />
         		<a id="pl.87.4"></a><var>87.4</var>prepaid calling service, prepaid wireless calling service, and private communication <br />
         		<a id="pl.87.5"></a><var>87.5</var>services. The services in this paragraph are taxed to the extent allowed under federal law.<br />
         		<a id="pl.87.6"></a><var>87.6</var>&#160;&#160;&#160;&#160;(j) A sale and a purchase includes the furnishing for a consideration of installation if <br />
         		<a id="pl.87.7"></a><var>87.7</var>the installation charges would be subject to the sales tax if the installation were provided <br />
         		<a id="pl.87.8"></a><var>87.8</var>by the seller of the item being installed.<br />
         		<a id="pl.87.9"></a><var>87.9</var>&#160;&#160;&#160;&#160;(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer <br />
         		<a id="pl.87.10"></a><var>87.10</var>to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) <br />
         		<a id="pl.87.11"></a><var>87.11</var>the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section <br />
         		
         <statute_ref><a id="pl.87.12"></a><var>87.12</var>59B.02, subdivision
         </statute_ref> 11.<br />
         		<a id="pl.87.13"></a><var>87.13</var>&#160;&#160;&#160;&#160;(l) A sale and a purchase includes furnishing for a consideration of specified digital <br />
         		<a id="pl.87.14"></a><var>87.14</var>products or other digital products or granting the right for a consideration to use specified <br />
         		<a id="pl.87.15"></a><var>87.15</var>digital products or other digital products on a temporary or permanent basis and regardless <br />
         		<a id="pl.87.16"></a><var>87.16</var>of whether the purchaser is required to make continued payments for such right. Wherever <br />
         		<a id="pl.87.17"></a><var>87.17</var>the term "tangible personal property" is used in this chapter, other than in subdivisions 10 <br />
         		<a id="pl.87.18"></a><var>87.18</var>and 38, the provisions also apply to specified digital products, or other digital products, <br />
         		<a id="pl.87.19"></a><var>87.19</var>unless specifically provided otherwise or the context indicates otherwise.<br />
         		<a id="pl.87.20"></a><var>87.20</var>(m) The sale of the privilege of admission under section 297A.61, subdivision 3, <br />
         		<a id="pl.87.21"></a><var>87.21</var>paragraph (g), clause (1), to a place of amusement or athletic event includes all charges <br />
         		<a id="pl.87.22"></a><var>87.22</var>included in the privilege of admission's sales price, without deduction for amenities that <br />
         		<a id="pl.87.23"></a><var>87.23</var>may be provided, unless the amenities are separately stated and the purchaser of the <br />
         		<a id="pl.87.24"></a><var>87.24</var>privilege of admission is entitled to add or decline the amenities, and the amenities are not <br />
         		<a id="pl.87.25"></a><var>87.25</var>otherwise taxable.<br />
         		<a id="pl.87.26"></a><var>87.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.2.0"></a><a id="pl.87.27"></a><var>87.27</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 297A.66, subdivision 1, is amended to read:<br />
         		<a id="pl.87.28"></a><var>87.28</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> (a) To the extent allowed by the United States <br />
         		<a id="pl.87.29"></a><var>87.29</var>Constitution and the laws of the United States, "retailer maintaining a place of business in <br />
         		<a id="pl.87.30"></a><var>87.30</var>this state," or a similar term, means a retailer:<br />
         		<a id="pl.87.31"></a><var>87.31</var>(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, <br />
         		<a id="pl.87.32"></a><var>87.32</var>an office, place of distribution, sales, storage, or sample room or place, warehouse, or <br />
         		<a id="pl.87.33"></a><var>87.33</var>other place of business, including the employment of a resident of this state who works <br />
         		<a id="pl.87.34"></a><var>87.34</var>from a home office in this state; or<br />
         		<a id="pl.88.1"></a><var>88.1</var>(2) having a representative, including, but not limited to, an affiliate, agent, <br />
         		<a id="pl.88.2"></a><var>88.2</var>salesperson, canvasser, or marketplace provider, solicitor, or other third party operating in <br />
         		<a id="pl.88.3"></a><var>88.3</var>this state under the authority of the retailer or its subsidiary, for any purpose, including the <br />
         		<a id="pl.88.4"></a><var>88.4</var>repairing, selling, delivering, installing, facilitating sales, processing sales, or soliciting of <br />
         		<a id="pl.88.5"></a><var>88.5</var>orders for the retailer's goods or services, or the leasing of tangible personal property located <br />
         		<a id="pl.88.6"></a><var>88.6</var>in this state, whether the place of business or agent, representative, affiliate, salesperson, <br />
         		<a id="pl.88.7"></a><var>88.7</var>canvasser, or solicitor is located in the state permanently or temporarily, or whether or not <br />
         		<a id="pl.88.8"></a><var>88.8</var>the retailer, subsidiary, or affiliate is authorized to do business in this state. A retailer is <br />
         		<a id="pl.88.9"></a><var>88.9</var>represented by a marketplace provider in this state if the retailer makes sales in this state <br />
         		<a id="pl.88.10"></a><var>88.10</var>facilitated by a marketplace provider that maintains a place of business in this state.<br />
         		<a id="pl.88.11"></a><var>88.11</var>(b) "Destination of a sale" means the location to which the retailer makes delivery of <br />
         		<a id="pl.88.12"></a><var>88.12</var>the property sold, or causes the property to be delivered, to the purchaser of the property, <br />
         		<a id="pl.88.13"></a><var>88.13</var>or to the agent or designee of the purchaser. The delivery may be made by any means, <br />
         		<a id="pl.88.14"></a><var>88.14</var>including the United States Postal Service or a for-hire carrier.<br />
         		<a id="pl.88.15"></a><var>88.15</var>(c) "Marketplace provider" means any person who facilitates a retail sale by a <br />
         		<a id="pl.88.16"></a><var>88.16</var>retailer by:<br />
         		<a id="pl.88.17"></a><var>88.17</var>(1) listing or advertising for sale by the retailer in any forum, tangible personal <br />
         		<a id="pl.88.18"></a><var>88.18</var>property, services, or digital goods that are subject to tax under this chapter; and<br />
         		<a id="pl.88.19"></a><var>88.19</var>(2) either directly or indirectly through agreements or arrangements with third <br />
         		<a id="pl.88.20"></a><var>88.20</var>parties collecting payment from the customer and transmitting that payment to the <br />
         		<a id="pl.88.21"></a><var>88.21</var>retailer regardless of whether the marketplace provider receives compensation or other <br />
         		<a id="pl.88.22"></a><var>88.22</var>consideration in exchange for its services.<br />
         		<a id="pl.88.23"></a><var>88.23</var>(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible <br />
         		<a id="pl.88.24"></a><var>88.24</var>goods, services, and digital goods subject to sales and use tax under this chapter.<br />
         		<br />
         		<a id="bill.4.3.0"></a><a id="pl.88.25"></a><var>88.25</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 297A.66, subdivision 2, is amended to read:<br />
         		<a id="pl.88.26"></a><var>88.26</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Retailer maintaining place of business in this state.</b> (a) Except as <br />
         		<a id="pl.88.27"></a><var>88.27</var>provided in paragraph (b), a retailer maintaining a place of business in this state who <br />
         		<a id="pl.88.28"></a><var>88.28</var>makes retail sales in Minnesota or to a destination in Minnesota shall collect sales and use <br />
         		<a id="pl.88.29"></a><var>88.29</var>taxes and remit them to the commissioner under section 
         <statute_ref>297A.77</statute_ref>.<br />
         		<a id="pl.88.30"></a><var>88.30</var>(b) A retailer with total taxable retail sales to customers in this state of less than <br />
         		<a id="pl.88.31"></a><var>88.31</var>$10,000 in the 12-month period ending on the last day of the most recently completed <br />
         		<a id="pl.88.32"></a><var>88.32</var>calendar quarter is not required to collect and remit sales tax if it is determined to be a <br />
         		<a id="pl.88.33"></a><var>88.33</var>retailer maintaining a place of business in the state solely because it made sales through <br />
         		<a id="pl.88.34"></a><var>88.34</var>one or more marketplace providers. The provisions of this paragraph do not apply to a <br />
         		<a id="pl.88.35"></a><var>88.35</var>retailer that is or was registered to collect sales and use tax in this state.<br />
         		<br />
         		<a id="bill.4.4.0"></a><a id="pl.89.1"></a><var>89.1</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 297A.66, subdivision 4, is amended to read:<br />
         		<a id="pl.89.2"></a><var>89.2</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Affiliated entities.</b> (a) An entity is an "affiliate" of the retailer for purposes <br />
         		<a id="pl.89.3"></a><var>89.3</var>of subdivision 1, paragraph (a), if the entity:<br />
         		<a id="pl.89.4"></a><var>89.4</var>(1) the entity uses its facilities or employees in this state to advertise, promote, or <br />
         		<a id="pl.89.5"></a><var>89.5</var>facilitate the establishment or maintenance of a market for sales of items by the retailer <br />
         		<a id="pl.89.6"></a><var>89.6</var>to purchasers in this state or for the provision of services to the retailer's purchasers in <br />
         		<a id="pl.89.7"></a><var>89.7</var>this state, such as accepting returns of purchases for the retailer, providing assistance in <br />
         		<a id="pl.89.8"></a><var>89.8</var>resolving customer complaints of the retailer, or providing other services; and<br />
         		<a id="pl.89.9"></a><var>89.9</var>(2) the retailer and the entity are related parties. has the same or a similar business <br />
         		<a id="pl.89.10"></a><var>89.10</var>name to the retailer and sells, from a location or locations in this state, tangible personal <br />
         		<a id="pl.89.11"></a><var>89.11</var>property, digital goods, or services, taxable under this chapter, that are similar to that <br />
         		<a id="pl.89.12"></a><var>89.12</var>sold by the retailer;<br />
         		<a id="pl.89.13"></a><var>89.13</var>(3) maintains an office, distribution facility, salesroom, warehouse, storage place, or <br />
         		<a id="pl.89.14"></a><var>89.14</var>other similar place of business in this state to facilitate the delivery of tangible personal <br />
         		<a id="pl.89.15"></a><var>89.15</var>property, digital goods, or services sold by the retailer to its customers in this state;<br />
         		<a id="pl.89.16"></a><var>89.16</var>(4) maintains a place of business in this state and uses trademarks, service marks, <br />
         		<a id="pl.89.17"></a><var>89.17</var>or trade names in this state that are the same or substantially similar to those used by <br />
         		<a id="pl.89.18"></a><var>89.18</var>the retailer, and that use is done with the express or implied consent of the holder of <br />
         		<a id="pl.89.19"></a><var>89.19</var>the marks or names;<br />
         		<a id="pl.89.20"></a><var>89.20</var>(5) delivers, installs, or assembles tangible personal property in this state, or <br />
         		<a id="pl.89.21"></a><var>89.21</var>performs maintenance or repair services on tangible personal property in this state, for <br />
         		<a id="pl.89.22"></a><var>89.22</var>tangible personal property sold by the retailer;<br />
         		<a id="pl.89.23"></a><var>89.23</var>(6) facilitates the delivery of tangible personal property to customers of the retailer <br />
         		<a id="pl.89.24"></a><var>89.24</var>by allowing the customers to pick up tangible personal property sold by the retailer at a <br />
         		<a id="pl.89.25"></a><var>89.25</var>place of business the entity maintains in this state; or<br />
         		<a id="pl.89.26"></a><var>89.26</var>(7) shares management, business systems, business practices, or employees with the <br />
         		<a id="pl.89.27"></a><var>89.27</var>retailer, or engages in intercompany transactions with the retailer related to the activities <br />
         		<a id="pl.89.28"></a><var>89.28</var>that establish or maintain the market in this state of the retailer.<br />
         		<a id="pl.89.29"></a><var>89.29</var>(b) Two entities are related parties under this section if one of the entities meets at <br />
         		<a id="pl.89.30"></a><var>89.30</var>least one of the following tests with respect to the other entity:<br />
         		<a id="pl.89.31"></a><var>89.31</var>(1) one or both entities is a corporation, and one entity and any party related to that <br />
         		<a id="pl.89.32"></a><var>89.32</var>entity in a manner that would require an attribution of stock from the corporation to the <br />
         		<a id="pl.89.33"></a><var>89.33</var>party or from the party to the corporation under the attribution rules of section 318 of the <br />
         		<a id="pl.89.34"></a><var>89.34</var>Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 <br />
         		<a id="pl.89.35"></a><var>89.35</var>percent of the value of the corporation's outstanding stock;<br />
         		<a id="pl.90.1"></a><var>90.1</var>(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary, <br />
         		<a id="pl.90.2"></a><var>90.2</var>and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly, <br />
         		<a id="pl.90.3"></a><var>90.3</var>beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital, <br />
         		<a id="pl.90.4"></a><var>90.4</var>stock, or value of the other entity or both entities; or<br />
         		<a id="pl.90.5"></a><var>90.5</var>(3) an individual stockholder and the members of the stockholder's family (as <br />
         		<a id="pl.90.6"></a><var>90.6</var>defined in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, <br />
         		<a id="pl.90.7"></a><var>90.7</var>or constructively, in the aggregate, at least 50 percent of the value of both entities' <br />
         		<a id="pl.90.8"></a><var>90.8</var>outstanding stock.;<br />
         		<a id="pl.90.9"></a><var>90.9</var>(4) the entities are related within the meaning of subsections (b) and (c) of section <br />
         		<a id="pl.90.10"></a><var>90.10</var>267 or 707(b)(1) of the Internal Revenue Code; or<br />
         		<a id="pl.90.11"></a><var>90.11</var>(5) the entities have one or more ownership relationships and the relationships were <br />
         		<a id="pl.90.12"></a><var>90.12</var>designed with a principal purpose of avoiding the application of this section.<br />
         		<a id="pl.90.13"></a><var>90.13</var>(c) An entity is an affiliate under the provisions of this subdivision if the requirements <br />
         		<a id="pl.90.14"></a><var>90.14</var>of paragraphs (a) and (b) are met during any part of the 12-month period ending on the <br />
         		<a id="pl.90.15"></a><var>90.15</var>first day of the month before the month in which the sale was made.<br />
         		<br />
         		<a id="bill.4.5.0"></a><a id="pl.90.16"></a><var>90.16</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision <br />
         		<a id="pl.90.17"></a><var>90.17</var>to read:<br />
         		<a id="pl.90.18"></a><var>90.18</var>&#160;&#160;&#160;&#160;Subd. 4b. <b>Collection and remittance requirements for marketplace providers </b><br />
         		<a id="pl.90.19"></a><var>90.19</var><b>and marketplace sellers.</b> (a) A marketplace provider shall collect sales and use taxes <br />
         		<a id="pl.90.20"></a><var>90.20</var>and remit them to the commissioner under section 297A.77 for all facilitated sales for a <br />
         		<a id="pl.90.21"></a><var>90.21</var>retailer, and is subject to audit on the retail sales it facilitates unless the retailer either:<br />
         		<a id="pl.90.22"></a><var>90.22</var>(1) provides a copy of the seller's registration to collect sales and use tax in this state <br />
         		<a id="pl.90.23"></a><var>90.23</var>to the marketplace provider before the marketplace provider facilitates a sale; or<br />
         		<a id="pl.90.24"></a><var>90.24</var>(2) upon inquiry by the marketplace provider or its agent, the commissioner <br />
         		<a id="pl.90.25"></a><var>90.25</var>discloses that the retailer is registered to collect sales and use taxes in this state.<br />
         		<a id="pl.90.26"></a><var>90.26</var>(b) Nothing in this subdivision shall be construed to interfere with the ability of a <br />
         		<a id="pl.90.27"></a><var>90.27</var>marketplace provider and a retailer to enter into an agreement regarding fulfillment of <br />
         		<a id="pl.90.28"></a><var>90.28</var>the requirements of this chapter.<br />
         		<a id="pl.90.29"></a><var>90.29</var>(c) A marketplace provider is not liable under this subdivision for failure to file and <br />
         		<a id="pl.90.30"></a><var>90.30</var>collect and remit sales and use taxes if the marketplace provider demonstrates that the <br />
         		<a id="pl.90.31"></a><var>90.31</var>error was due to incorrect or insufficient information given to the marketplace provider by <br />
         		<a id="pl.90.32"></a><var>90.32</var>the retailer. This paragraph does not apply if the marketplace provider and the marketplace <br />
         		<a id="pl.90.33"></a><var>90.33</var>seller are related as defined in subdivision 4, paragraph (b).<br />
         		<br />
         		<a id="bill.4.6.0"></a><a id="pl.90.34"></a><var>90.34</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 297A.67, subdivision 7a, is amended to read:<br />
         		<a id="pl.91.1"></a><var>91.1</var>&#160;&#160;&#160;&#160;Subd. 7a. <b>Accessories and supplies.</b> Accessories and supplies required for the <br />
         		<a id="pl.91.2"></a><var>91.2</var>effective use of durable medical equipment for home use only or purchased in a transaction <br />
         		<a id="pl.91.3"></a><var>91.3</var>covered by Medicare or, Medicaid, or other health insurance plan, that are not already <br />
         		<a id="pl.91.4"></a><var>91.4</var>exempt under subdivision 7, are exempt. Accessories and supplies for the effective use <br />
         		<a id="pl.91.5"></a><var>91.5</var>of a prosthetic device, that are not already exempt under subdivision 7, are exempt. <br />
         		<a id="pl.91.6"></a><var>91.6</var>For purposes of this subdivision "durable medical equipment," "prosthetic device," <br />
         		<a id="pl.91.7"></a><var>91.7</var>"Medicare," and "Medicaid" have the definitions given in subdivision 7., and "other health <br />
         		<a id="pl.91.8"></a><var>91.8</var>insurance plan" means a health plan defined in section 62A.011, subdivision 3, or 62V.02, <br />
         		<a id="pl.91.9"></a><var>91.9</var>subdivision 4, or a qualified health plan defined in section 62A.011, subdivision 7.<br />
         		<a id="pl.91.10"></a><var>91.10</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.91.11"></a><var>91.11</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.4.7.0"></a><a id="pl.91.12"></a><var>91.12</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision <br />
         		<a id="pl.91.13"></a><var>91.13</var>to read:<br />
         		<a id="pl.91.14"></a><var>91.14</var>&#160;&#160;&#160;&#160;Subd. 34. <b>Suite licenses.</b> The sale of the privilege of admission under section <br />
         		<a id="pl.91.15"></a><var>91.15</var>297A.61, subdivision 3, paragraph (g), clause (1), to a place of amusement or athletic <br />
         		<a id="pl.91.16"></a><var>91.16</var>event does not include consideration paid for a license to use a private suite, private <br />
         		<a id="pl.91.17"></a><var>91.17</var>skybox, or private box seat provided that: (1) the lessee may use the private suite, private <br />
         		<a id="pl.91.18"></a><var>91.18</var>skybox, or private box seat by mutual arrangement with the lessor on days when there is <br />
         		<a id="pl.91.19"></a><var>91.19</var>no amusement or athletic event; and (2) the sales price for the privilege of admission is <br />
         		<a id="pl.91.20"></a><var>91.20</var>separately stated and is equal to or greater than the highest priced general admission ticket <br />
         		<a id="pl.91.21"></a><var>91.21</var>for the closest seat not in the private suite, private skybox, or private box seat.<br />
         		<a id="pl.91.22"></a><var>91.22</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.91.23"></a><var>91.23</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.4.8.0"></a><a id="pl.91.24"></a><var>91.24</var>&#160;&#160;&#160;&#160;Sec. 8. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision <br />
         		<a id="pl.91.25"></a><var>91.25</var>to read:<br />
         		<a id="pl.91.26"></a><var>91.26</var>&#160;&#160;&#160;&#160;Subd. 35. <b>Stadium builder's licenses.</b> The sale of the privilege of admission under <br />
         		<a id="pl.91.27"></a><var>91.27</var>section 297A.61, subdivision 3, paragraph (g), clause (1), does not include consideration <br />
         		<a id="pl.91.28"></a><var>91.28</var>paid for a stadium builder's license authorized under section 473J.15, subdivision 14.<br />
         		<a id="pl.91.29"></a><var>91.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.9.0"></a><a id="pl.91.30"></a><var>91.30</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2014, section 297A.68, subdivision 9, is amended to read:<br />
         		<a id="pl.91.31"></a><var>91.31</var>&#160;&#160;&#160;&#160;Subd. 9. <b>Super Bowl admissions</b><b> and related events</b><b>.</b> (a) The granting of the <br />
         		<a id="pl.91.32"></a><var>91.32</var>privilege of admission to a world championship football game sponsored by the National <br />
         		<a id="pl.92.1"></a><var>92.1</var>Football League is and to related events sponsored by the National Football League or its <br />
         		<a id="pl.92.2"></a><var>92.2</var>affiliates, or the Minnesota Super Bowl Host Committee, are exempt.<br />
         		<a id="pl.92.3"></a><var>92.3</var>(b) The sale of nonresidential parking by the National Football League for <br />
         		<a id="pl.92.4"></a><var>92.4</var>attendance at a world championship football game sponsored by the National Football <br />
         		<a id="pl.92.5"></a><var>92.5</var>League and for related events sponsored by the National Football League or its affiliates, <br />
         		<a id="pl.92.6"></a><var>92.6</var>or the Minnesota Super Bowl Host Committee, is exempt.<br />
         		<a id="pl.92.7"></a><var>92.7</var>(c) For the purposes of this subdivision:<br />
         		<a id="pl.92.8"></a><var>92.8</var>(1) "related events sponsored by the National Football League or its affiliates" <br />
         		<a id="pl.92.9"></a><var>92.9</var>includes but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, <br />
         		<a id="pl.92.10"></a><var>92.10</var>NFL On Location, and NFL House; and<br />
         		<a id="pl.92.11"></a><var>92.11</var>(2) "affiliates" does not include National Football League teams.<br />
         		<a id="pl.92.12"></a><var>92.12</var><b>EFFECTIVE DATE.</b>The amendments to this section are effective for sales and <br />
         		<a id="pl.92.13"></a><var>92.13</var>purchases made after June 30, 2016, and before March 1, 2018.<br />
         		<br />
         		<a id="bill.4.10.0"></a><a id="pl.92.14"></a><var>92.14</var>&#160;&#160;&#160;&#160;Sec. 10. Minnesota Statutes 2014, section 297A.70, subdivision 14, is amended to read:<br />
         		<a id="pl.92.15"></a><var>92.15</var>&#160;&#160;&#160;&#160;Subd. 14. <b>Fund-raising events sponsored by nonprofit groups.</b> (a) Sales of <br />
         		<a id="pl.92.16"></a><var>92.16</var>tangible personal property or services at, and admission charges for fund-raising events <br />
         		<a id="pl.92.17"></a><var>92.17</var>sponsored by, a nonprofit organization are exempt if:<br />
         		<a id="pl.92.18"></a><var>92.18</var>(1) all gross receipts are recorded as such, in accordance with generally accepted <br />
         		<a id="pl.92.19"></a><var>92.19</var>accounting practices, on the books of the nonprofit organization; and<br />
         		<a id="pl.92.20"></a><var>92.20</var>(2) the entire proceeds, less the necessary expenses for the event, will be used solely <br />
         		<a id="pl.92.21"></a><var>92.21</var>and exclusively for charitable, religious, or educational purposes. Exempt sales include <br />
         		<a id="pl.92.22"></a><var>92.22</var>the sale of prepared food, candy, and soft drinks at the fund-raising event.<br />
         		<a id="pl.92.23"></a><var>92.23</var>(b) This exemption is limited in the following manner:<br />
         		<a id="pl.92.24"></a><var>92.24</var>(1) it does not apply to admission charges for events involving bingo or other <br />
         		<a id="pl.92.25"></a><var>92.25</var>gambling activities or to charges for use of amusement devices involving bingo or other <br />
         		<a id="pl.92.26"></a><var>92.26</var>gambling activities;<br />
         		<a id="pl.92.27"></a><var>92.27</var>(2) all gross receipts are taxable if the profits are not used solely and exclusively for <br />
         		<a id="pl.92.28"></a><var>92.28</var>charitable, religious, or educational purposes;<br />
         		<a id="pl.92.29"></a><var>92.29</var>(3) it does not apply unless the organization keeps a separate accounting record, <br />
         		<a id="pl.92.30"></a><var>92.30</var>including receipts and disbursements from each fund-raising event that documents all <br />
         		<a id="pl.92.31"></a><var>92.31</var>deductions from gross receipts with receipts and other records;<br />
         		<a id="pl.92.32"></a><var>92.32</var>(4) it does not apply to any sale made by or in the name of a nonprofit corporation as <br />
         		<a id="pl.92.33"></a><var>92.33</var>the active or passive agent of a person that is not a nonprofit corporation;<br />
         		<a id="pl.92.34"></a><var>92.34</var>(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;<br />
         		<a id="pl.93.1"></a><var>93.1</var>(6) it does not apply to fund-raising events conducted on premises leased for more <br />
         		<a id="pl.93.2"></a><var>93.2</var>than five ten days but less than 30 days; and<br />
         		<a id="pl.93.3"></a><var>93.3</var>(7) it does not apply if the risk of the event is not borne by the nonprofit organization <br />
         		<a id="pl.93.4"></a><var>93.4</var>and the benefit to the nonprofit organization is less than the total amount of the state and <br />
         		<a id="pl.93.5"></a><var>93.5</var>local tax revenues forgone by this exemption.<br />
         		<a id="pl.93.6"></a><var>93.6</var>(c) For purposes of this subdivision, a "nonprofit organization" means any unit of <br />
         		<a id="pl.93.7"></a><var>93.7</var>government, corporation, society, association, foundation, or institution organized and <br />
         		<a id="pl.93.8"></a><var>93.8</var>operated for charitable, religious, educational, civic, fraternal, and senior citizens' or <br />
         		<a id="pl.93.9"></a><var>93.9</var>veterans' purposes, no part of the net earnings of which inures to the benefit of a private <br />
         		<a id="pl.93.10"></a><var>93.10</var>individual.<br />
         		<a id="pl.93.11"></a><var>93.11</var>(d) For purposes of this subdivision, "fund-raising events" means activities of <br />
         		<a id="pl.93.12"></a><var>93.12</var>limited duration, not regularly carried out in the normal course of business, that attract <br />
         		<a id="pl.93.13"></a><var>93.13</var>patrons for community, social, and entertainment purposes, such as auctions, bake sales, <br />
         		<a id="pl.93.14"></a><var>93.14</var>ice cream socials, block parties, carnivals, competitions, concerts, concession stands, <br />
         		<a id="pl.93.15"></a><var>93.15</var>craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion <br />
         		<a id="pl.93.16"></a><var>93.16</var>shows, festivals, galas, special event workshops, sporting activities such as marathons and <br />
         		<a id="pl.93.17"></a><var>93.17</var>tournaments, and similar events. Fund-raising events do not include the operation of a <br />
         		<a id="pl.93.18"></a><var>93.18</var>regular place of business in which services are provided or sales are made during regular <br />
         		<a id="pl.93.19"></a><var>93.19</var>hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, <br />
         		<a id="pl.93.20"></a><var>93.20</var>regularly scheduled classes, or other activities carried out in the normal course of business.<br />
         		<a id="pl.93.21"></a><var>93.21</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.93.22"></a><var>93.22</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.4.11.0"></a><a id="pl.93.23"></a><var>93.23</var>&#160;&#160;&#160;&#160;Sec. 11. Minnesota Statutes 2014, section 297A.71, is amended by adding a <br />
         		<a id="pl.93.24"></a><var>93.24</var>subdivision to read:<br />
         		<a id="pl.93.25"></a><var>93.25</var>&#160;&#160;&#160;&#160;Subd. 49. <b>Siding production facility materials.</b> Building materials and supplies <br />
         		<a id="pl.93.26"></a><var>93.26</var>for constructing a siding production facility that can produce at least 400,000,000 square <br />
         		<a id="pl.93.27"></a><var>93.27</var>feet of siding per year are exempt. The tax must be imposed and collected as if the rate <br />
         		<a id="pl.93.28"></a><var>93.28</var>under section 297A.62, subdivision 1, applied, and then refunded in the manner provided <br />
         		<a id="pl.93.29"></a><var>93.29</var>in section 297A.75.<br />
         		<a id="pl.93.30"></a><var>93.30</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.93.31"></a><var>93.31</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.4.12.0"></a><a id="pl.93.32"></a><var>93.32</var>&#160;&#160;&#160;&#160;Sec. 12. Minnesota Statutes 2014, section 297A.71, is amended by adding a <br />
         		<a id="pl.93.33"></a><var>93.33</var>subdivision to read:<br />
         		<a id="pl.94.1"></a><var>94.1</var>&#160;&#160;&#160;&#160;Subd. 50. <b>Properties destroyed by fire.</b> Building materials and supplies used in, <br />
         		<a id="pl.94.2"></a><var>94.2</var>and equipment incorporated into, the construction or replacement of real property that is <br />
         		<a id="pl.94.3"></a><var>94.3</var>located in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be <br />
         		<a id="pl.94.4"></a><var>94.4</var>imposed and collected as if the rate under section 297A.62, subdivision 1, applied and <br />
         		<a id="pl.94.5"></a><var>94.5</var>then refunded in the manner provided in section 297A.75. <br />
         		<a id="pl.94.6"></a><var>94.6</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.94.7"></a><var>94.7</var>June 30, 2016, and before July 1, 2018.<br />
         		<br />
         		<a id="bill.4.13.0"></a><a id="pl.94.8"></a><var>94.8</var>&#160;&#160;&#160;&#160;Sec. 13. Minnesota Statutes 2014, section 297A.71, is amended by adding a <br />
         		<a id="pl.94.9"></a><var>94.9</var>subdivision to read:<br />
         		<a id="pl.94.10"></a><var>94.10</var>&#160;&#160;&#160;&#160;Subd. 51. <b>Former Duluth Central High School.</b> Materials and supplies used <br />
         		<a id="pl.94.11"></a><var>94.11</var>in and equipment incorporated into a private redevelopment project on the site of the <br />
         		<a id="pl.94.12"></a><var>94.12</var>former Duluth Central High School are exempt, provided the resulting development is <br />
         		<a id="pl.94.13"></a><var>94.13</var>subject to property taxes. The tax must be imposed and collected as if the rate under <br />
         		<a id="pl.94.14"></a><var>94.14</var>section 297A.62, subdivision 1, applied and then refunded in the manner provided in <br />
         		<a id="pl.94.15"></a><var>94.15</var>section 297A.75. The commissioner must not pay more than $5,000,000 in refunds for <br />
         		<a id="pl.94.16"></a><var>94.16</var>purchases exempt under this section. Refunds must be processed and issued in the order <br />
         		<a id="pl.94.17"></a><var>94.17</var>that complete and accurate applications are received by the commissioner.<br />
         		<a id="pl.94.18"></a><var>94.18</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.94.19"></a><var>94.19</var>June 30, 2016, and before January 1, 2018.<br />
         		<br />
         		<a id="bill.4.14.0"></a><a id="pl.94.20"></a><var>94.20</var>&#160;&#160;&#160;&#160;Sec. 14. Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read:<br />
         		<a id="pl.94.21"></a><var>94.21</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Tax collected.</b> The tax on the gross receipts from the sale of the <br />
         		<a id="pl.94.22"></a><var>94.22</var>following exempt items must be imposed and collected as if the sale were taxable and the <br />
         		<a id="pl.94.23"></a><var>94.23</var>rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied. The exempt items include:<br />
         		<a id="pl.94.24"></a><var>94.24</var>&#160;&#160;&#160;&#160;(1) building materials for an agricultural processing facility exempt under section <br />
         		
         <statute_ref><a id="pl.94.25"></a><var>94.25</var>297A.71, subdivision 13
         </statute_ref>;<br />
         		<a id="pl.94.26"></a><var>94.26</var>&#160;&#160;&#160;&#160;(2) building materials for mineral production facilities exempt under section <br />
         		
         <statute_ref><a id="pl.94.27"></a><var>94.27</var>297A.71, subdivision 14
         </statute_ref>;<br />
         		<a id="pl.94.28"></a><var>94.28</var>&#160;&#160;&#160;&#160;(3) building materials for correctional facilities under section 
         <statute_ref>297A.71, subdivision 3</statute_ref>;<br />
         		<a id="pl.94.29"></a><var>94.29</var>&#160;&#160;&#160;&#160;(4) building materials used in a residence for disabled veterans exempt under section <br />
         		
         <statute_ref><a id="pl.94.30"></a><var>94.30</var>297A.71, subdivision 11
         </statute_ref>;<br />
         		<a id="pl.94.31"></a><var>94.31</var>&#160;&#160;&#160;&#160;(5) elevators and building materials exempt under section 
         <statute_ref>297A.71, subdivision 12</statute_ref>;<br />
         		<a id="pl.94.32"></a><var>94.32</var>&#160;&#160;&#160;&#160;(6) materials and supplies for qualified low-income housing under section 
         <statute_ref>297A.71, <br />
            		<a id="pl.94.33"></a><var>94.33</var>subdivision 23
         </statute_ref>;<br />
         		<a id="pl.95.1"></a><var>95.1</var>&#160;&#160;&#160;&#160;(7) materials, supplies, and equipment for municipal electric utility facilities under <br />
         		<a id="pl.95.2"></a><var>95.2</var>section 
         <statute_ref>297A.71, subdivision 35</statute_ref>;<br />
         		<a id="pl.95.3"></a><var>95.3</var>&#160;&#160;&#160;&#160;(8) equipment and materials used for the generation, transmission, and distribution <br />
         		<a id="pl.95.4"></a><var>95.4</var>of electrical energy and an aerial camera package exempt under section 
         <statute_ref>297A.68</statute_ref>, <br />
         		<a id="pl.95.5"></a><var>95.5</var>subdivision 37;<br />
         		<a id="pl.95.6"></a><var>95.6</var>&#160;&#160;&#160;&#160;(9) commuter rail vehicle and repair parts under section 
         <statute_ref>297A.70</statute_ref>, subdivision 3, <br />
         		<a id="pl.95.7"></a><var>95.7</var>paragraph (a), clause (10);<br />
         		<a id="pl.95.8"></a><var>95.8</var>&#160;&#160;&#160;&#160;(10) materials, supplies, and equipment for construction or improvement of projects <br />
         		<a id="pl.95.9"></a><var>95.9</var>and facilities under section 
         <statute_ref>297A.71, subdivision 40</statute_ref>;<br />
         		<a id="pl.95.10"></a><var>95.10</var>(11) materials, supplies, and equipment for construction, improvement, or expansion <br />
         		<a id="pl.95.11"></a><var>95.11</var>of:<br />
         		<a id="pl.95.12"></a><var>95.12</var>(i) an aerospace defense manufacturing facility exempt under section 
         <statute_ref>297A.71, <br />
            		<a id="pl.95.13"></a><var>95.13</var>subdivision 42
         </statute_ref>;<br />
         		<a id="pl.95.14"></a><var>95.14</var>(ii) a biopharmaceutical manufacturing facility exempt under section 
         <statute_ref>297A.71, <br />
            		<a id="pl.95.15"></a><var>95.15</var>subdivision 45
         </statute_ref>;<br />
         		<a id="pl.95.16"></a><var>95.16</var>(iii) a research and development facility exempt under section 
         <statute_ref>297A.71, subdivision <br />
            		<a id="pl.95.17"></a><var>95.17</var>46
         </statute_ref>; and<br />
         		<a id="pl.95.18"></a><var>95.18</var>(iv) an industrial measurement manufacturing and controls facility exempt under <br />
         		<a id="pl.95.19"></a><var>95.19</var>section 
         <statute_ref>297A.71, subdivision 47</statute_ref>;<br />
         		<a id="pl.95.20"></a><var>95.20</var>(12) enterprise information technology equipment and computer software for use in <br />
         		<a id="pl.95.21"></a><var>95.21</var>a qualified data center exempt under section 
         <statute_ref>297A.68, subdivision 42</statute_ref>;<br />
         		<a id="pl.95.22"></a><var>95.22</var>(13) materials, supplies, and equipment for qualifying capital projects under section <br />
         		
         <statute_ref><a id="pl.95.23"></a><var>95.23</var>297A.71, subdivision 44
         </statute_ref>;<br />
         		<a id="pl.95.24"></a><var>95.24</var>(14) items purchased for use in providing critical access dental services exempt <br />
         		<a id="pl.95.25"></a><var>95.25</var>under section 
         <statute_ref>297A.70, subdivision 7</statute_ref>, paragraph (c); and<br />
         		<a id="pl.95.26"></a><var>95.26</var>(15) items and services purchased under a business subsidy agreement for use or <br />
         		<a id="pl.95.27"></a><var>95.27</var>consumption primarily in greater Minnesota exempt under section 
         <statute_ref>297A.68, subdivision 44</statute_ref>;<br />
         		<a id="pl.95.28"></a><var>95.28</var>(16) building materials and supplies for constructing a siding facility exempt under <br />
         		<a id="pl.95.29"></a><var>95.29</var>section 297A.71, subdivision 49;<br />
         		<a id="pl.95.30"></a><var>95.30</var>(17) building materials, equipment, and supplies for constructing or replacing real <br />
         		<a id="pl.95.31"></a><var>95.31</var>property exempt under section 297A.71, subdivision 50; and<br />
         		<a id="pl.95.32"></a><var>95.32</var>(18) materials and supplies used in and equipment incorporated into a private <br />
         		<a id="pl.95.33"></a><var>95.33</var>redevelopment project exempt under section 297A.71, subdivision 51.<br />
         		<a id="pl.95.34"></a><var>95.34</var><b>EFFECTIVE DATE.</b>Clause (16) is effective for sales and purchases made after <br />
         		<a id="pl.95.35"></a><var>95.35</var>June 30, 2016. Clause (17) is effective for sales and purchases made after June 30, 2016, <br />
         		<a id="pl.96.1"></a><var>96.1</var>and before July 1, 2018. Clause (18) is effective for sales and purchases made after June <br />
         		<a id="pl.96.2"></a><var>96.2</var>30, 2016, and before January 1, 2018.<br />
         		<br />
         		<a id="bill.4.15.0"></a><a id="pl.96.3"></a><var>96.3</var>&#160;&#160;&#160;&#160;Sec. 15. Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read:<br />
         		<a id="pl.96.4"></a><var>96.4</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Refund; eligible persons.</b> Upon application on forms prescribed by the <br />
         		<a id="pl.96.5"></a><var>96.5</var>commissioner, a refund equal to the tax paid on the gross receipts of the exempt items <br />
         		<a id="pl.96.6"></a><var>96.6</var>must be paid to the applicant. Only the following persons may apply for the refund:<br />
         		<a id="pl.96.7"></a><var>96.7</var>&#160;&#160;&#160;&#160;(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;<br />
         		<a id="pl.96.8"></a><var>96.8</var>&#160;&#160;&#160;&#160;(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;<br />
         		<a id="pl.96.9"></a><var>96.9</var>&#160;&#160;&#160;&#160;(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits <br />
         		<a id="pl.96.10"></a><var>96.10</var>provided in United States Code, title 38, chapter 21;<br />
         		<a id="pl.96.11"></a><var>96.11</var>&#160;&#160;&#160;&#160;(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead <br />
         		<a id="pl.96.12"></a><var>96.12</var>property;<br />
         		<a id="pl.96.13"></a><var>96.13</var>&#160;&#160;&#160;&#160;(5) for subdivision 1, clause (6), the owner of the qualified low-income housing <br />
         		<a id="pl.96.14"></a><var>96.14</var>project;<br />
         		<a id="pl.96.15"></a><var>96.15</var>&#160;&#160;&#160;&#160;(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or <br />
         		<a id="pl.96.16"></a><var>96.16</var>a joint venture of municipal electric utilities;<br />
         		<a id="pl.96.17"></a><var>96.17</var>&#160;&#160;&#160;&#160;(7) for subdivision 1, clauses (8), (11), (12), and (15), and (16), the owner of the <br />
         		<a id="pl.96.18"></a><var>96.18</var>qualifying business; and<br />
         		<a id="pl.96.19"></a><var>96.19</var>&#160;&#160;&#160;&#160;(8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the <br />
         		<a id="pl.96.20"></a><var>96.20</var>governmental entity that owns or contracts for the project or facility; and<br />
         		<a id="pl.96.21"></a><var>96.21</var>&#160;&#160;&#160;&#160;(9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or <br />
         		<a id="pl.96.22"></a><var>96.22</var>developer of the building or project.<br />
         		<a id="pl.96.23"></a><var>96.23</var><b>EFFECTIVE DATE.</b>The change to clause (7) is effective for sales and purchases <br />
         		<a id="pl.96.24"></a><var>96.24</var>made after June 30, 2016. Clause (9) is effective for sales and purchases made after June <br />
         		<a id="pl.96.25"></a><var>96.25</var>30, 2016, and before July 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, <br />
         		<a id="pl.96.26"></a><var>96.26</var>subdivision 1, clause (17), and for sales and purchases made after June 30, 2016, and <br />
         		<a id="pl.96.27"></a><var>96.27</var>before January 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision <br />
         		<a id="pl.96.28"></a><var>96.28</var>1, clause (18).<br />
         		<br />
         		<a id="bill.4.16.0"></a><a id="pl.96.29"></a><var>96.29</var>&#160;&#160;&#160;&#160;Sec. 16. Minnesota Statutes 2014, section 297A.75, subdivision 3, is amended to read:<br />
         		<a id="pl.96.30"></a><var>96.30</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Application.</b> (a) The application must include sufficient information <br />
         		<a id="pl.96.31"></a><var>96.31</var>to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, <br />
         		<a id="pl.96.32"></a><var>96.32</var>subcontractor, or builder, under subdivision 1, clauses (3) to (13), or (15), to (18), the <br />
         		<a id="pl.96.33"></a><var>96.33</var>contractor, subcontractor, or builder must furnish to the refund applicant a statement <br />
         		<a id="pl.96.34"></a><var>96.34</var>including the cost of the exempt items and the taxes paid on the items unless otherwise <br />
         		<a id="pl.97.1"></a><var>97.1</var>specifically provided by this subdivision. The provisions of sections 
         <statute_ref>289A.40</statute_ref> and <br />
         		
         <statute_ref><a id="pl.97.2"></a><var>97.2</var>289A.50
         </statute_ref> apply to refunds under this section.<br />
         		<a id="pl.97.3"></a><var>97.3</var>&#160;&#160;&#160;&#160;(b) An applicant may not file more than two applications per calendar year for <br />
         		<a id="pl.97.4"></a><var>97.4</var>refunds for taxes paid on capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>.<br />
         		<a id="pl.97.5"></a><var>97.5</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.97.6"></a><var>97.6</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.4.17.0"></a><a id="pl.97.7"></a><var>97.7</var>&#160;&#160;&#160;&#160;Sec. 17. Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read:<br />
         		<a id="pl.97.8"></a><var>97.8</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Motor vehicle lease sales tax revenue.</b> (a) For purposes of this subdivision, <br />
         		<a id="pl.97.9"></a><var>97.9</var>"net revenue" means an amount equal to the revenues, including interest and penalties, <br />
         		<a id="pl.97.10"></a><var>97.10</var>collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.<br />
         		<a id="pl.97.11"></a><var>97.11</var>&#160;&#160;&#160;&#160;(b) On or before June 30 of each fiscal year, the commissioner of revenue shall <br />
         		<a id="pl.97.12"></a><var>97.12</var>estimate the amount of the net revenue for the current fiscal year.<br />
         		<a id="pl.97.13"></a><var>97.13</var>&#160;&#160;&#160;&#160;(c) On or after July 1 of the subsequent fiscal year, the commissioner of management <br />
         		<a id="pl.97.14"></a><var>97.14</var>and budget shall transfer the net revenue as estimated in paragraph (b) from the general <br />
         		<a id="pl.97.15"></a><var>97.15</var>fund, as follows:<br />
         		<a id="pl.97.16"></a><var>97.16</var>&#160;&#160;&#160;&#160;(1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to <br />
         		<a id="pl.97.17"></a><var>97.17</var>the county state-aid highway fund. Notwithstanding any other law to the contrary, the <br />
         		<a id="pl.97.18"></a><var>97.18</var>commissioner of transportation shall allocate the funds transferred under this clause to the <br />
         		<a id="pl.97.19"></a><var>97.19</var>counties in the metropolitan area, as defined in section 
         <statute_ref>473.121</statute_ref>, subdivision 4, excluding <br />
         		<a id="pl.97.20"></a><var>97.20</var>the counties of Hennepin and Ramsey, so that each county shall receive of such amount <br />
         		<a id="pl.97.21"></a><var>97.21</var>the percentage that its population, as defined in section 
         <statute_ref>477A.011</statute_ref>, subdivision 3, estimated <br />
         		<a id="pl.97.22"></a><var>97.22</var>or established by July 15 of the year prior to the current calendar year, bears to the total <br />
         		<a id="pl.97.23"></a><var>97.23</var>population of the counties receiving funds under this clause; and<br />
         		<a id="pl.97.24"></a><var>97.24</var>&#160;&#160;&#160;&#160;(2) the remainder to the greater Minnesota transit account.<br />
         		<a id="pl.97.25"></a><var>97.25</var>(d) The revenues deposited under this subdivision do not include the revenues, <br />
         		<a id="pl.97.26"></a><var>97.26</var>including interest and penalties, generated by the sales tax imposed under section <br />
         		<a id="pl.97.27"></a><var>97.27</var>297A.62, subdivision 1a, which must be deposited as provided under the Minnesota <br />
         		<a id="pl.97.28"></a><var>97.28</var>Constitution, article XI, section 15.<br />
         		<a id="pl.97.29"></a><var>97.29</var><b>EFFECTIVE DATE.</b>This section is effective beginning with the estimate that must <br />
         		<a id="pl.97.30"></a><var>97.30</var>be completed on or before June 30, 2017, for a transfer that occurs on or after July 1, 2017, <br />
         		<a id="pl.97.31"></a><var>97.31</var>except paragraph (c) is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.18.0"></a><a id="pl.97.32"></a><var>97.32</var>&#160;&#160;&#160;&#160;Sec. 18. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, <br />
         		<a id="pl.97.33"></a><var>97.33</var>chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws <br />
         		<a id="pl.98.1"></a><var>98.1</var>2003, First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, <br />
         		<a id="pl.98.2"></a><var>98.2</var>article 5, section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:<br />
         		<a id="pl.98.3"></a><var>98.3</var>&#160;&#160;&#160;&#160;Subd. 2. (a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>477A.016</statute_ref>, or any other <br />
         		<a id="pl.98.4"></a><var>98.4</var>law, ordinance, or city charter provision to the contrary, the city of Duluth may, by <br />
         		<a id="pl.98.5"></a><var>98.5</var>ordinance, impose an additional sales tax of up to one and three-quarter percent on sales <br />
         		<a id="pl.98.6"></a><var>98.6</var>transactions which are described in Minnesota Statutes 2000, section 
         <statute_ref>297A.01</statute_ref>, subdivision <br />
         		<a id="pl.98.7"></a><var>98.7</var>3, clause (c). The imposition of this tax shall not be subject to voter referendum under <br />
         		<a id="pl.98.8"></a><var>98.8</var>either state law or city charter provisions. When the city council determines that the taxes <br />
         		<a id="pl.98.9"></a><var>98.9</var>imposed under this paragraph at a rate of three-quarters of one percent and other sources <br />
         		<a id="pl.98.10"></a><var>98.10</var>of revenue produce revenue sufficient to pay debt service on bonds in the principal amount <br />
         		<a id="pl.98.11"></a><var>98.11</var>of $40,285,000 plus issuance and discount costs, issued for capital improvements at the <br />
         		<a id="pl.98.12"></a><var>98.12</var>Duluth Entertainment and Convention Center, which include a new arena, the rate of tax <br />
         		<a id="pl.98.13"></a><var>98.13</var>under this subdivision must be reduced by three-quarters of one percent.<br />
         		<a id="pl.98.14"></a><var>98.14</var>(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, <br />
         		<a id="pl.98.15"></a><var>98.15</var>section 
         <statute_ref>477A.016</statute_ref>, or any other law, ordinance, or city charter provision to the contrary, <br />
         		<a id="pl.98.16"></a><var>98.16</var>the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of <br />
         		<a id="pl.98.17"></a><var>98.17</var>one percent on sales transactions which are described in Minnesota Statutes 2000, section <br />
         		
         <statute_ref><a id="pl.98.18"></a><var>98.18</var>297A.01, subdivision 3
         </statute_ref>, clause (c). This tax expires when the city council determines <br />
         		<a id="pl.98.19"></a><var>98.19</var>that the tax imposed under this paragraph, along with the tax imposed under section <br />
         		<a id="pl.98.20"></a><var>98.20</var>22, paragraph (b), has produced revenues sufficient to pay the debt service on bonds <br />
         		<a id="pl.98.21"></a><var>98.21</var>in a principal amount of no more than $18,000,000, plus issuance and discount costs, <br />
         		<a id="pl.98.22"></a><var>98.22</var>to finance capital improvements to public facilities to support tourism and recreational <br />
         		<a id="pl.98.23"></a><var>98.23</var>activities in that portion of the city west of 34th 14th Avenue West and the area south of <br />
         		<a id="pl.98.24"></a><var>98.24</var>and including Skyline Parkway.<br />
         		<a id="pl.98.25"></a><var>98.25</var>(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation <br />
         		<a id="pl.98.26"></a><var>98.26</var>bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for the <br />
         		<a id="pl.98.27"></a><var>98.27</var>costs of issuance and any premiums. The proceeds may be used to finance capital <br />
         		<a id="pl.98.28"></a><var>98.28</var>improvements to public facilities that support tourism and recreational activities in the <br />
         		<a id="pl.98.29"></a><var>98.29</var>portion of the city west of 34th 14th Avenue West and the area south of and including <br />
         		<a id="pl.98.30"></a><var>98.30</var>Skyline Parkway, as described in paragraph (b). The issuance of the bonds is subject to the <br />
         		<a id="pl.98.31"></a><var>98.31</var>provisions of Minnesota Statutes, chapter 475, except no election shall be required unless <br />
         		<a id="pl.98.32"></a><var>98.32</var>required by the city charter. The bonds shall not be included in computing net debt. The <br />
         		<a id="pl.98.33"></a><var>98.33</var>revenues from the taxes that the city of Duluth may impose under paragraph (b) and under <br />
         		<a id="pl.98.34"></a><var>98.34</var>section 22, paragraph (b), may be pledged to pay principal of and interest on such bonds.<br />
         		<a id="pl.99.1"></a><var>99.1</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.99.2"></a><var>99.2</var>the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.99.3"></a><var>99.3</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.4.19.0"></a><a id="pl.99.4"></a><var>99.4</var>&#160;&#160;&#160;&#160;Sec. 19. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, <br />
         		<a id="pl.99.5"></a><var>99.5</var>article 8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and <br />
         		<a id="pl.99.6"></a><var>99.6</var>Laws 2014, chapter 308, article 3, section 22, is amended to read:<br />
         		<a id="pl.99.7"></a><var>99.7</var>&#160;&#160;&#160;&#160;Sec. 22. <b>CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND </b><br />
         		<a id="pl.99.8"></a><var>99.8</var><b>MOTELS.</b><br />
         		<a id="pl.99.9"></a><var>99.9</var>&#160;&#160;&#160;&#160;(a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>477A.016</statute_ref>, or any other law, or <br />
         		<a id="pl.99.10"></a><var>99.10</var>ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, <br />
         		<a id="pl.99.11"></a><var>99.11</var>impose an additional tax of one percent upon the gross receipts from the sale of lodging <br />
         		<a id="pl.99.12"></a><var>99.12</var>for periods of less than 30 days in hotels and motels located in the city. The tax shall be <br />
         		<a id="pl.99.13"></a><var>99.13</var>collected in the same manner as the tax set forth in the Duluth city charter, section 54(d), <br />
         		<a id="pl.99.14"></a><var>99.14</var>paragraph one. The imposition of this tax shall not be subject to voter referendum under <br />
         		<a id="pl.99.15"></a><var>99.15</var>either state law or city charter provisions.<br />
         		<a id="pl.99.16"></a><var>99.16</var>(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, <br />
         		<a id="pl.99.17"></a><var>99.17</var>section 
         <statute_ref>477A.016</statute_ref>, or any other law, ordinance, or city charter provision to the contrary, <br />
         		<a id="pl.99.18"></a><var>99.18</var>the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half <br />
         		<a id="pl.99.19"></a><var>99.19</var>of one percent on the gross receipts from the sale of lodging for periods of less than <br />
         		<a id="pl.99.20"></a><var>99.20</var>30 days in hotels and motels located in the city. This tax expires when the city council <br />
         		<a id="pl.99.21"></a><var>99.21</var>first determines that the tax imposed under this paragraph, along with the tax imposed <br />
         		<a id="pl.99.22"></a><var>99.22</var>under section 21, paragraph (b), has produced revenues sufficient to pay the debt <br />
         		<a id="pl.99.23"></a><var>99.23</var>service on bonds in a principal amount of no more than $18,000,000, plus issuance and <br />
         		<a id="pl.99.24"></a><var>99.24</var>discount costs, to finance capital improvements to public facilities to support tourism and <br />
         		<a id="pl.99.25"></a><var>99.25</var>recreational activities in that portion of the city west of 34th 14th Avenue West and the <br />
         		<a id="pl.99.26"></a><var>99.26</var>area south of and including Skyline Parkway.<br />
         		<a id="pl.99.27"></a><var>99.27</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.99.28"></a><var>99.28</var>the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.99.29"></a><var>99.29</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.4.20.0"></a><a id="pl.99.30"></a><var>99.30</var>&#160;&#160;&#160;&#160;Sec. 20. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by <br />
         		<a id="pl.99.31"></a><var>99.31</var>Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, <br />
         		<a id="pl.99.32"></a><var>99.32</var>and Laws 2009, chapter 88, article 4, section 14, is amended to read:<br />
         		<a id="pl.99.33"></a><var>99.33</var>&#160;&#160;&#160;&#160;Subd. 3.  <b>Use of revenues.</b> (a) Revenues received from taxes authorized by <br />
         		<a id="pl.99.34"></a><var>99.34</var>subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax and to <br />
         		<a id="pl.100.1"></a><var>100.1</var>pay all or a portion of the expenses of constructing and improving facilities as part of an <br />
         		<a id="pl.100.2"></a><var>100.2</var>urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized <br />
         		<a id="pl.100.3"></a><var>100.3</var>expenses include, but are not limited to, acquiring property and paying relocation expenses <br />
         		<a id="pl.100.4"></a><var>100.4</var>related to the development of Riverfront 2000 and related facilities, and securing or paying <br />
         		<a id="pl.100.5"></a><var>100.5</var>debt service on bonds or other obligations issued to finance the construction of Riverfront <br />
         		<a id="pl.100.6"></a><var>100.6</var>2000 and related facilities. For purposes of this section, "Riverfront 2000 and related <br />
         		<a id="pl.100.7"></a><var>100.7</var>facilities" means a civic-convention center, an arena, a riverfront park, a technology center <br />
         		<a id="pl.100.8"></a><var>100.8</var>and related educational facilities, and all publicly owned real or personal property that <br />
         		<a id="pl.100.9"></a><var>100.9</var>the governing body of the city determines will be necessary to facilitate the use of these <br />
         		<a id="pl.100.10"></a><var>100.10</var>facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and <br />
         		<a id="pl.100.11"></a><var>100.11</var>landscaping. It also includes the performing arts theatre and the Southern Minnesota <br />
         		<a id="pl.100.12"></a><var>100.12</var>Women's Hockey Exposition Center, for use by Minnesota State University, Mankato.<br />
         		<a id="pl.100.13"></a><var>100.13</var>&#160;&#160;&#160;&#160;(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and subject <br />
         		<a id="pl.100.14"></a><var>100.14</var>to voter approval at a general election held before December 31, 2018; provided that the <br />
         		<a id="pl.100.15"></a><var>100.15</var>sales tax in the city of North Mankato is also extended at the same general election, the <br />
         		<a id="pl.100.16"></a><var>100.16</var>city may by ordinance also use revenues from taxes authorized under subdivisions 1 and <br />
         		<a id="pl.100.17"></a><var>100.17</var>2, up to a maximum of $47,000,000, plus associated bond costs, to pay all or a portion of <br />
         		<a id="pl.100.18"></a><var>100.18</var>the expenses of the following capital projects:<br />
         		<a id="pl.100.19"></a><var>100.19</var>&#160;&#160;&#160;&#160;(1) construction and improvements to regional recreational facilities including <br />
         		<a id="pl.100.20"></a><var>100.20</var>existing hockey and curling rinks, a baseball park, youth athletic fields and facilities, the <br />
         		<a id="pl.100.21"></a><var>100.21</var>municipal swimming pool including improvements to make the pool compliant with the <br />
         		<a id="pl.100.22"></a><var>100.22</var>Americans with Disabilities Act, and indoor regional athletic facilities; <br />
         		<a id="pl.100.23"></a><var>100.23</var>&#160;&#160;&#160;&#160;(2) improvements to flood control and the levee system;<br />
         		<a id="pl.100.24"></a><var>100.24</var>(3) water quality improvement projects in Blue Earth and Nicollet Counties; <br />
         		<a id="pl.100.25"></a><var>100.25</var>(4) expansion of the regional transit building and related multimodal transit <br />
         		<a id="pl.100.26"></a><var>100.26</var>improvements;<br />
         		<a id="pl.100.27"></a><var>100.27</var>(5) regional public safety and emergency communications improvements and <br />
         		<a id="pl.100.28"></a><var>100.28</var>equipment; and<br />
         		<a id="pl.100.29"></a><var>100.29</var>(6) matching funds for improvements to publicly owned regional facilities including <br />
         		<a id="pl.100.30"></a><var>100.30</var>a historic museum, supportive housing, and a senior center.<br />
         		<a id="pl.100.31"></a><var>100.31</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.100.32"></a><var>100.32</var>the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.100.33"></a><var>100.33</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.4.21.0"></a><a id="pl.101.1"></a><var>101.1</var>&#160;&#160;&#160;&#160;Sec. 21. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by <br />
         		<a id="pl.101.2"></a><var>101.2</var>Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter <br />
         		<a id="pl.101.3"></a><var>101.3</var>366, article 7, section 10, is amended to read:<br />
         		<a id="pl.101.4"></a><var>101.4</var>&#160;&#160;&#160;&#160;Subd. 4.  <b>Expiration of taxing authority and expenditure limitation.</b> The <br />
         		<a id="pl.101.5"></a><var>101.5</var>authority granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax <br />
         		<a id="pl.101.6"></a><var>101.6</var>shall expire on at the earlier of when revenues are sufficient to pay off the bonds, including <br />
         		<a id="pl.101.7"></a><var>101.7</var>interest and all other associated bond costs authorized under subdivision 5, or  December 31, <br />
         		<a id="pl.101.8"></a><var>101.8</var>2022, unless the additional uses under subdivision 3, paragraph (b) or (c), are authorized. <br />
         		<a id="pl.101.9"></a><var>101.9</var>If the additional use allowed in subdivision 3, paragraph (b), is authorized, the taxes expire <br />
         		<a id="pl.101.10"></a><var>101.10</var>at the earlier of when revenues are sufficient to pay off the bonds, including interest and <br />
         		<a id="pl.101.11"></a><var>101.11</var>all other associated bond costs authorized under subdivision 5, or December 31, 2038. <br />
         		<a id="pl.101.12"></a><var>101.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.101.13"></a><var>101.13</var>without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.<br />
         		<br />
         		<a id="bill.4.22.0"></a><a id="pl.101.14"></a><var>101.14</var>&#160;&#160;&#160;&#160;Sec. 22. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:<br />
         		<a id="pl.101.15"></a><var>101.15</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Bonds.</b> (a) The city of Mankato may issue general obligation bonds of the <br />
         		<a id="pl.101.16"></a><var>101.16</var>city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, <br />
         		<a id="pl.101.17"></a><var>101.17</var>without election under Minnesota Statutes, chapter 475, on the question of issuance of the <br />
         		<a id="pl.101.18"></a><var>101.18</var>bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000 <br />
         		<a id="pl.101.19"></a><var>101.19</var>and related facilities shall not be included in computing any debt limitations applicable <br />
         		<a id="pl.101.20"></a><var>101.20</var>to the city of Mankato, and the levy of taxes required by section 
         <statute_ref>475.61</statute_ref> to pay principal <br />
         		<a id="pl.101.21"></a><var>101.21</var>of and interest on the bonds shall not be subject to any levy limitation or be included in <br />
         		<a id="pl.101.22"></a><var>101.22</var>computing or applying any levy limitation applicable to the city.<br />
         		<a id="pl.101.23"></a><var>101.23</var>&#160;&#160;&#160;&#160;(b) The city of Mankato, subject to voter approval at the election required under <br />
         		<a id="pl.101.24"></a><var>101.24</var>subdivision 3, paragraph (b), may issue general obligation bonds of the city in an amount <br />
         		<a id="pl.101.25"></a><var>101.25</var>not to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), <br />
         		<a id="pl.101.26"></a><var>101.26</var>without election under Minnesota Statutes, chapter 475, on the question of issuance of the <br />
         		<a id="pl.101.27"></a><var>101.27</var>bonds or a tax to pay them. The debt represented by bonds under this paragraph shall not be <br />
         		<a id="pl.101.28"></a><var>101.28</var>included in computing any debt limitations applicable to the city of Mankato, and the levy <br />
         		<a id="pl.101.29"></a><var>101.29</var>of taxes required by Minnesota Statutes, section 
         <statute_ref>475.61,</statute_ref> to pay principal of and interest on <br />
         		<a id="pl.101.30"></a><var>101.30</var>the bonds, and shall not be subject to any levy limitation or be included in computing or <br />
         		<a id="pl.101.31"></a><var>101.31</var>applying any levy limitation applicable to the city. The city may use tax revenue in excess <br />
         		<a id="pl.101.32"></a><var>101.32</var>of one year's principal interest reserve for intended annual bond payments to pay all or a <br />
         		<a id="pl.101.33"></a><var>101.33</var>portion of the cost of capital improvements authorized in subdivision 3.<br />
         		<a id="pl.102.1"></a><var>102.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.102.2"></a><var>102.2</var>without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.<br />
         		<br />
         		<a id="bill.4.23.0"></a><a id="pl.102.3"></a><var>102.3</var>&#160;&#160;&#160;&#160;Sec. 23. Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read:<br />
         		<a id="pl.102.4"></a><var>102.4</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Reverse referendum</b><b>; authorization of extension</b><b>.</b> (a) If the Mankato city <br />
         		<a id="pl.102.5"></a><var>102.5</var>council intends to exercise the authority provided by this section, it shall pass a resolution <br />
         		<a id="pl.102.6"></a><var>102.6</var>stating the fact before July 1, 1991. The resolution must be published for two successive <br />
         		<a id="pl.102.7"></a><var>102.7</var>weeks in the official newspaper of the city or, if there is no official newspaper, in a <br />
         		<a id="pl.102.8"></a><var>102.8</var>newspaper of general circulation in the city, together with a notice fixing a date for a public <br />
         		<a id="pl.102.9"></a><var>102.9</var>hearing on the matter. The hearing must be held at least two weeks but not more than four <br />
         		<a id="pl.102.10"></a><var>102.10</var>weeks after the first publication of the resolution. Following the public hearing, the city <br />
         		<a id="pl.102.11"></a><var>102.11</var>may determine to take no further action or adopt a resolution confirming its intention to <br />
         		<a id="pl.102.12"></a><var>102.12</var>exercise the authority. That resolution must also be published in the official newspaper of <br />
         		<a id="pl.102.13"></a><var>102.13</var>the city or, if there is no official newspaper, in a newspaper of general circulation in the <br />
         		<a id="pl.102.14"></a><var>102.14</var>city. If within 30 days after publication of the resolution a petition signed by voters equal <br />
         		<a id="pl.102.15"></a><var>102.15</var>in number to ten percent of the votes cast in the city in the last general election requesting <br />
         		<a id="pl.102.16"></a><var>102.16</var>a vote on the proposed resolution is filed with the county auditor, the resolution is not <br />
         		<a id="pl.102.17"></a><var>102.17</var>effective until it has been submitted to the voters at a general or special election and a <br />
         		<a id="pl.102.18"></a><var>102.18</var>majority of votes cast on the question of approving the resolution are in the affirmative. The <br />
         		<a id="pl.102.19"></a><var>102.19</var>commissioner of revenue shall prepare a suggested form of question to be presented at the <br />
         		<a id="pl.102.20"></a><var>102.20</var>election. The referendum must be held at a special or general election before December 1, <br />
         		<a id="pl.102.21"></a><var>102.21</var>1991. This subdivision applies notwithstanding any city charter provision to the contrary.<br />
         		<a id="pl.102.22"></a><var>102.22</var>&#160;&#160;&#160;&#160;(b) If the Mankato city council wishes to extend the taxes authorized under <br />
         		<a id="pl.102.23"></a><var>102.23</var>subdivisions 1 and 2 to fund any of the projects listed in subdivision 3, paragraph (b), the <br />
         		<a id="pl.102.24"></a><var>102.24</var>city must pass a resolution extending the taxes before July 1, 2016. The tax may not be <br />
         		<a id="pl.102.25"></a><var>102.25</var>imposed unless approved by the voters.<br />
         		<a id="pl.102.26"></a><var>102.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.102.27"></a><var>102.27</var>without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.<br />
         		<br />
         		<a id="bill.4.24.0"></a><a id="pl.102.28"></a><var>102.28</var>&#160;&#160;&#160;&#160;Sec. 24. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by <br />
         		<a id="pl.102.29"></a><var>102.29</var>Laws 2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter <br />
         		<a id="pl.102.30"></a><var>102.30</var>7, article 4, section 4, is amended to read:<br />
         		<a id="pl.102.31"></a><var>102.31</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Sales tax authorized.</b> (a) Notwithstanding Minnesota Statutes, <br />
         		<a id="pl.102.32"></a><var>102.32</var>section 477A.016, or any other contrary provision of law, ordinance, or city charter, the <br />
         		<a id="pl.102.33"></a><var>102.33</var>city of Hermantown may, by ordinance, impose an additional sales tax of up to one percent <br />
         		<a id="pl.102.34"></a><var>102.34</var>on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur <br />
         		<a id="pl.103.1"></a><var>103.1</var>within the city. The proceeds of the tax imposed under this section must be used to pay <br />
         		<a id="pl.103.2"></a><var>103.2</var>the cost of collection of the tax and to meet the costs, including principal, interest, and <br />
         		<a id="pl.103.3"></a><var>103.3</var>premiums of bonds used in the finance  of:<br />
         		<a id="pl.103.4"></a><var>103.4</var>&#160;&#160;&#160;&#160;(1) extending a sewer interceptor line; <br />
         		<a id="pl.103.5"></a><var>103.5</var>&#160;&#160;&#160;&#160;(2) construction of a booster pump station, reservoirs, and related improvements <br />
         		<a id="pl.103.6"></a><var>103.6</var>to the water system; and<br />
         		<a id="pl.103.7"></a><var>103.7</var>&#160;&#160;&#160;&#160;(3) construction of a building containing a police and fire station and an <br />
         		<a id="pl.103.8"></a><var>103.8</var>administrative services facility; and<br />
         		<a id="pl.103.9"></a><var>103.9</var>&#160;&#160;&#160;&#160;(4) construction and equipping of a regional, multiuse wellness center.<br />
         		<a id="pl.103.10"></a><var>103.10</var>(b) If the city imposed a sales tax of only one-half of one percent under paragraph <br />
         		<a id="pl.103.11"></a><var>103.11</var>(a), it may increase the tax to one percent to fund the purposes under paragraph (a) <br />
         		<a id="pl.103.12"></a><var>103.12</var>provided it is approved by the voters at a general election held before December 31, 2012.<br />
         		<a id="pl.103.13"></a><var>103.13</var>(c) The tax imposed in paragraph (a) may only be used to fund projects listed in <br />
         		<a id="pl.103.14"></a><var>103.14</var>paragraph (a), clause (4), if approved by the local voters at the November 8, 2016, general <br />
         		<a id="pl.103.15"></a><var>103.15</var>election. Revenue raised from the tax imposed under this subdivision in every year must <br />
         		<a id="pl.103.16"></a><var>103.16</var>first be used to meet obligations in that year related to the projects in paragraph (a), clauses <br />
         		<a id="pl.103.17"></a><var>103.17</var>(1) to (3), with excess revenues available to fund the projects in paragraph (a), clause (4).<br />
         		<a id="pl.103.18"></a><var>103.18</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.103.19"></a><var>103.19</var>the city of Hermantown and its chief clerical officer comply with Minnesota Statutes, <br />
         		<a id="pl.103.20"></a><var>103.20</var>section 645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.4.25.0"></a><a id="pl.103.21"></a><var>103.21</var>&#160;&#160;&#160;&#160;Sec. 25. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by <br />
         		<a id="pl.103.22"></a><var>103.22</var>Laws 2006, chapter 259, article 3, section 4, is amended to read:<br />
         		<a id="pl.103.23"></a><var>103.23</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Termination.</b> The tax authorized under this section terminates on March <br />
         		<a id="pl.103.24"></a><var>103.24</var>31, 2026, unless the additional use under subdivision 1, paragraph (a), is approved <br />
         		<a id="pl.103.25"></a><var>103.25</var>as required under subdivision 1, paragraph (c). If the additional project is approved <br />
         		<a id="pl.103.26"></a><var>103.26</var>as required under subdivision 1, paragraph (c), the tax authorized under this section <br />
         		<a id="pl.103.27"></a><var>103.27</var>terminates at the earlier of (1) December 31, 2036, or (2) when the Hermantown City <br />
         		<a id="pl.103.28"></a><var>103.28</var>Council first determines that sufficient funds have been received from the tax to fund the <br />
         		<a id="pl.103.29"></a><var>103.29</var>costs, including bonds and associated bond costs for the uses specified in subdivision 1, <br />
         		<a id="pl.103.30"></a><var>103.30</var>paragraph (a). Any funds remaining after completion of the improvements and retirement <br />
         		<a id="pl.103.31"></a><var>103.31</var>or redemption of the bonds may be placed in the general fund of the city.<br />
         		<a id="pl.103.32"></a><var>103.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.103.33"></a><var>103.33</var>without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.<br />
         		<br />
         		<a id="bill.4.26.0"></a><a id="pl.104.1"></a><var>104.1</var>&#160;&#160;&#160;&#160;Sec. 26. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by <br />
         		<a id="pl.104.2"></a><var>104.2</var>Laws 2008, chapter 366, article 7, section 12, is amended to read:<br />
         		<a id="pl.104.3"></a><var>104.3</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Sales and use tax.</b> (a) Notwithstanding Minnesota Statutes, section <br />
         		
         <statute_ref><a id="pl.104.4"></a><var>104.4</var>477A.016
         </statute_ref>, or any other provision of law, ordinance, or city charter, if approved by the city <br />
         		<a id="pl.104.5"></a><var>104.5</var>voters at the first municipal general election held after the date of final enactment of this act <br />
         		<a id="pl.104.6"></a><var>104.6</var>or at a special election held November 2, 1999, the city of Proctor may impose by ordinance <br />
         		<a id="pl.104.7"></a><var>104.7</var>a sales and use tax of up to one-half of one percent for the purposes specified in subdivision <br />
         		<a id="pl.104.8"></a><var>104.8</var>3. The provisions of Minnesota Statutes, section 
         <statute_ref>297A.99</statute_ref>, govern the imposition, <br />
         		<a id="pl.104.9"></a><var>104.9</var>administration, collection, and enforcement of the tax authorized under this subdivision.<br />
         		<a id="pl.104.10"></a><var>104.10</var>(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of <br />
         		<a id="pl.104.11"></a><var>104.11</var>law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional <br />
         		<a id="pl.104.12"></a><var>104.12</var>sales and use tax of up to one-half of one percent as approved by the voters at the <br />
         		<a id="pl.104.13"></a><var>104.13</var>November 4, 2014, general election. The revenues received from the additional tax must <br />
         		<a id="pl.104.14"></a><var>104.14</var>be used for the purposes specified in subdivision 3, paragraph (b).<br />
         		<a id="pl.104.15"></a><var>104.15</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.104.16"></a><var>104.16</var>the city of Proctor and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.104.17"></a><var>104.17</var>645.021, subdivisions 2 and 3, but only if the local approval requirement under section <br />
         		<a id="pl.104.18"></a><var>104.18</var>10 is also met.<br />
         		<br />
         		<a id="bill.4.27.0"></a><a id="pl.104.19"></a><var>104.19</var>&#160;&#160;&#160;&#160;Sec. 27. Laws 2008, chapter 366, article 7, section 20, is amended to read:<br />
         		<a id="pl.104.20"></a><var>104.20</var>&#160;&#160;&#160;&#160;Sec. 20. <b>CITY OF NORTH MANKATO; TAXES AUTHORIZED.</b><br />
         		<a id="pl.104.21"></a><var>104.21</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br />
         		<a id="pl.104.22"></a><var>104.22</var>section 
         <statute_ref>477A.016</statute_ref>, or any other provision of law, ordinance, or city charter, pursuant to <br />
         		<a id="pl.104.23"></a><var>104.23</var>the approval of the voters on November 7, 2006, the city of North Mankato may impose <br />
         		<a id="pl.104.24"></a><var>104.24</var>by ordinance a sales and use tax of one-half of one percent for the purposes specified <br />
         		<a id="pl.104.25"></a><var>104.25</var>in subdivision 2. The provisions of Minnesota Statutes, section 
         <statute_ref>297A.99</statute_ref>, govern the <br />
         		<a id="pl.104.26"></a><var>104.26</var>imposition, administration, collection, and enforcement of the taxes authorized under <br />
         		<a id="pl.104.27"></a><var>104.27</var>this subdivision. <br />
         		<a id="pl.104.28"></a><var>104.28</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Use of revenues.</b> (a) Revenues received from the tax authorized by <br />
         		<a id="pl.104.29"></a><var>104.29</var>subdivision 1 must be used to pay all or part of the capital costs of the following projects: <br />
         		<a id="pl.104.30"></a><var>104.30</var>&#160;&#160;&#160;&#160;(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 <br />
         		<a id="pl.104.31"></a><var>104.31</var>interchange project; <br />
         		<a id="pl.104.32"></a><var>104.32</var>&#160;&#160;&#160;&#160;(2) development of regional parks and hiking and biking trails, including <br />
         		<a id="pl.104.33"></a><var>104.33</var>construction of indoor regional athletic facilities;<br />
         		<a id="pl.104.34"></a><var>104.34</var>&#160;&#160;&#160;&#160;(3) expansion of the North Mankato Taylor Library;<br />
         		<a id="pl.104.35"></a><var>104.35</var>&#160;&#160;&#160;&#160;(4) riverfront redevelopment; and<br />
         		<a id="pl.105.1"></a><var>105.1</var>&#160;&#160;&#160;&#160;(5) lake improvement projects.<br />
         		<a id="pl.105.2"></a><var>105.2</var>&#160;&#160;&#160;&#160;The total amount of revenues from the tax in subdivision 1 that may be used to fund <br />
         		<a id="pl.105.3"></a><var>105.3</var>these projects is $6,000,000 plus any associated bond costs.<br />
         		<a id="pl.105.4"></a><var>105.4</var>&#160;&#160;&#160;&#160;(b) If the city extends the tax as authorized under subdivision 2a, the total amount that <br />
         		<a id="pl.105.5"></a><var>105.5</var>may be used to fund these projects is increased by $9,000,000, plus associated bond costs.<br />
         		<a id="pl.105.6"></a><var>105.6</var>&#160;&#160;&#160;&#160;Subd. 2a. <b>Authorization to extend the tax.</b> Notwithstanding Minnesota Statutes, <br />
         		<a id="pl.105.7"></a><var>105.7</var>section 297A.99, subdivision 3, the North Mankato city council may, by resolution, extend <br />
         		<a id="pl.105.8"></a><var>105.8</var>the tax authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus <br />
         		<a id="pl.105.9"></a><var>105.9</var>associated bond costs, to fund the projects in subdivision 2, paragraph (a), if approved by <br />
         		<a id="pl.105.10"></a><var>105.10</var>the voters at a general election held before December 31, 2018; provided that the sales tax <br />
         		<a id="pl.105.11"></a><var>105.11</var>in the city of Mankato is also extended at the same general election.<br />
         		<a id="pl.105.12"></a><var>105.12</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Bonds.</b> (a) The city of North Mankato, pursuant to the approval of the <br />
         		<a id="pl.105.13"></a><var>105.13</var>voters at the November 7, 2006 referendum authorizing the imposition of the taxes in <br />
         		<a id="pl.105.14"></a><var>105.14</var>this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and <br />
         		<a id="pl.105.15"></a><var>105.15</var>administrative expenses for the projects described in subdivision 2, paragraph (a), in an <br />
         		<a id="pl.105.16"></a><var>105.16</var>amount that does not exceed $6,000,000. A separate election to approve the bonds under <br />
         		<a id="pl.105.17"></a><var>105.17</var>Minnesota Statutes, section 
         <statute_ref>475.58</statute_ref>, is not required.<br />
         		<a id="pl.105.18"></a><var>105.18</var>(b) The city of North Mankato, subject to the referendum in subdivision 2a, allowing <br />
         		<a id="pl.105.19"></a><var>105.19</var>for additional revenue to be spent for the projects in subdivision 2, may issue additional <br />
         		<a id="pl.105.20"></a><var>105.20</var>bonds under Minnesota Statutes, chapter 475, to pay capital and administrative expenses <br />
         		<a id="pl.105.21"></a><var>105.21</var>for those projects in an amount that does not exceed $9,000,000. A separate election to <br />
         		<a id="pl.105.22"></a><var>105.22</var>approve the bonds under Minnesota Statutes, section 
         <statute_ref>475.58</statute_ref>, is not required.<br />
         		<a id="pl.105.23"></a><var>105.23</var>&#160;&#160;&#160;&#160;(b) (c) The debt represented by the bonds is not included in computing any debt <br />
         		<a id="pl.105.24"></a><var>105.24</var>limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section <br />
         		
         <statute_ref><a id="pl.105.25"></a><var>105.25</var>475.61
         </statute_ref>, to pay principal and interest on the bonds is not subject to any levy limitation.<br />
         		<a id="pl.105.26"></a><var>105.26</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires when <br />
         		<a id="pl.105.27"></a><var>105.27</var>the city council determines that the amount of revenues received from the taxes to pay for <br />
         		<a id="pl.105.28"></a><var>105.28</var>the projects under subdivision 2, paragraph (a), first equals or exceeds $6,000,000 plus the <br />
         		<a id="pl.105.29"></a><var>105.29</var>additional amount needed to pay the costs related to issuance of bonds under subdivision <br />
         		<a id="pl.105.30"></a><var>105.30</var>3, including interest on the bonds, unless the tax is extended as allowed in this section. If <br />
         		<a id="pl.105.31"></a><var>105.31</var>the tax is extended as allowed under the referendum under subdivision 2a, the tax expires <br />
         		<a id="pl.105.32"></a><var>105.32</var>at the earlier of December 31, 2038, or when revenues from the taxes first equal or exceed <br />
         		<a id="pl.105.33"></a><var>105.33</var>$15,000,000 plus the additional amount needed to pay costs related to issuance of bonds <br />
         		<a id="pl.105.34"></a><var>105.34</var>under subdivision 3, including interest. Any funds remaining after completion of the <br />
         		<a id="pl.105.35"></a><var>105.35</var>projects and retirement or redemption of the bonds shall be placed in a capital facilities <br />
         		<a id="pl.106.1"></a><var>106.1</var>and equipment replacement fund of the city. The tax imposed under subdivision 1 may <br />
         		<a id="pl.106.2"></a><var>106.2</var>expire at an earlier time if the city so determines by ordinance. <br />
         		<a id="pl.106.3"></a><var>106.3</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.106.4"></a><var>106.4</var>the city of North Mankato and its chief clerical officer comply with Minnesota Statutes, <br />
         		<a id="pl.106.5"></a><var>106.5</var>section 645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.4.28.0"></a><a id="pl.106.6"></a><var>106.6</var>&#160;&#160;&#160;&#160;Sec. 28. <b>CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.</b><br />
         		<a id="pl.106.7"></a><var>106.7</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota <br />
         		<a id="pl.106.8"></a><var>106.8</var>Statutes, section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, <br />
         		<a id="pl.106.9"></a><var>106.9</var>or city charter, and as approved by the voters at a special election on March 7, 2016, the <br />
         		<a id="pl.106.10"></a><var>106.10</var>city of East Grand Forks may impose, by ordinance, a sales and use tax of up to one <br />
         		<a id="pl.106.11"></a><var>106.11</var>percent for the purposes specified in subdivision 2. Except as otherwise provided in this <br />
         		<a id="pl.106.12"></a><var>106.12</var>section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, <br />
         		<a id="pl.106.13"></a><var>106.13</var>administration, collection, and enforcement of the tax authorized under this subdivision.<br />
         		<a id="pl.106.14"></a><var>106.14</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax <br />
         		<a id="pl.106.15"></a><var>106.15</var>authorized under subdivision 1 must be used by the city of East Grand Forks to pay the <br />
         		<a id="pl.106.16"></a><var>106.16</var>costs of collecting and administering the tax and to finance the capital and administrative <br />
         		<a id="pl.106.17"></a><var>106.17</var>costs of improvement to the city public swimming pool. Authorized expenses include, <br />
         		<a id="pl.106.18"></a><var>106.18</var>but are not limited to, paying construction expenses related to the renovation and the <br />
         		<a id="pl.106.19"></a><var>106.19</var>development of these facilities and improvements, and securing and paying debt service <br />
         		<a id="pl.106.20"></a><var>106.20</var>on bonds issued under subdivision 3 or other obligations issued to finance improvement of <br />
         		<a id="pl.106.21"></a><var>106.21</var>the public swimming pool in the city of East Grand Forks<br />
         		<a id="pl.106.22"></a><var>106.22</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Bonding authority.</b> (a) The city of East Grand Forks may issue bonds <br />
         		<a id="pl.106.23"></a><var>106.23</var>under Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the <br />
         		<a id="pl.106.24"></a><var>106.24</var>facilities authorized in subdivision 2. The aggregate principal amount of bonds issued <br />
         		<a id="pl.106.25"></a><var>106.25</var>under this subdivision may not exceed $2,820,000, plus an amount to be applied to the <br />
         		<a id="pl.106.26"></a><var>106.26</var>payment of the costs of issuing the bonds. The bonds may be paid from or secured by <br />
         		<a id="pl.106.27"></a><var>106.27</var>any funds available to the city of East Grand Forks, including the tax authorized under <br />
         		<a id="pl.106.28"></a><var>106.28</var>subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota <br />
         		<a id="pl.106.29"></a><var>106.29</var>Statutes, sections 275.60 and 275.61.<br />
         		<a id="pl.106.30"></a><var>106.30</var>(b) The bonds are not included in computing any debt limitation applicable to the <br />
         		<a id="pl.106.31"></a><var>106.31</var>city of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, <br />
         		<a id="pl.106.32"></a><var>106.32</var>to pay principal and interest on the bonds is not subject to any levy limitation. A separate <br />
         		<a id="pl.106.33"></a><var>106.33</var>election to approve the bonds under Minnesota Statutes, section 475.58, is not required.<br />
         		<a id="pl.107.1"></a><var>107.1</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at <br />
         		<a id="pl.107.2"></a><var>107.2</var>the later of: (1) five years after the tax is first imposed; or (2) when the city council <br />
         		<a id="pl.107.3"></a><var>107.3</var>determines that $2,820,000 has been received from the tax to pay for the cost of the <br />
         		<a id="pl.107.4"></a><var>107.4</var>projects authorized under subdivision 2, plus an amount sufficient to pay the costs related <br />
         		<a id="pl.107.5"></a><var>107.5</var>to issuance of the bonds authorized under subdivision 3, including interest on the bonds. <br />
         		<a id="pl.107.6"></a><var>107.6</var>Any funds remaining after payment of all such costs and retirement or redemption of the <br />
         		<a id="pl.107.7"></a><var>107.7</var>bonds shall be placed in the general fund of the city. The tax imposed under subdivision 1 <br />
         		<a id="pl.107.8"></a><var>107.8</var>may expire at an earlier time if the city so determines by ordinance.<br />
         		<a id="pl.107.9"></a><var>107.9</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br />
         		<a id="pl.107.10"></a><var>107.10</var>governing body of the city of East Grand Forks with Minnesota Statutes, section 645.021, <br />
         		<a id="pl.107.11"></a><var>107.11</var>subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.4.29.0"></a><a id="pl.107.12"></a><var>107.12</var>&#160;&#160;&#160;&#160;Sec. 29. <b>CITY OF MARSHALL; VALIDATION OF PRIOR ACT.</b><br />
         		<a id="pl.107.13"></a><var>107.13</var>(a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city <br />
         		<a id="pl.107.14"></a><var>107.14</var>of Marshall may approve Laws 2011, First Special Session chapter 7, article 4, section <br />
         		<a id="pl.107.15"></a><var>107.15</var>14, and file its approval with the secretary of state by June 15, 2013. If approved as <br />
         		<a id="pl.107.16"></a><var>107.16</var>authorized under this paragraph, actions undertaken by the city as approved by the voters <br />
         		<a id="pl.107.17"></a><var>107.17</var>on November 6, 2012, and otherwise in accordance with Laws 2011, First Special Session <br />
         		<a id="pl.107.18"></a><var>107.18</var>chapter 7, article 4, section 14, are validated.<br />
         		<a id="pl.107.19"></a><var>107.19</var>(b) Notwithstanding the time limit on the imposition of tax under Laws 2011, First <br />
         		<a id="pl.107.20"></a><var>107.20</var>Special Session chapter 7, article 4, section 14, and subject to local approval under <br />
         		<a id="pl.107.21"></a><var>107.21</var>paragraph (a), the city of Marshall may impose the tax on or before July 1, 2013.<br />
         		<a id="pl.107.22"></a><var>107.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.30.0"></a><a id="pl.107.23"></a><var>107.23</var>&#160;&#160;&#160;&#160;Sec. 30. <b>CERTAIN REIMBURSEMENT AUTHORIZED; CONSIDERED </b><br />
         		<a id="pl.107.24"></a><var>107.24</var><b>OPERATING OR CAPITAL EXPENSES.</b><br />
         		<a id="pl.107.25"></a><var>107.25</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Reimbursement authorized.</b> (a) An amount equivalent to the taxes <br />
         		<a id="pl.107.26"></a><var>107.26</var>paid under Minnesota Statutes, chapter 297A, and any local taxes administered by the <br />
         		<a id="pl.107.27"></a><var>107.27</var>Department of Revenue, on purchases of tangible personal property, nonresidential <br />
         		<a id="pl.107.28"></a><var>107.28</var>parking services, and lodging, as these terms are defined in Minnesota Statutes, chapter <br />
         		<a id="pl.107.29"></a><var>107.29</var>297A, used and consumed in connection with Super Bowl LII or related events sponsored <br />
         		<a id="pl.107.30"></a><var>107.30</var>by the National Football League or its affiliates, will be reimbursed by the Minnesota <br />
         		<a id="pl.107.31"></a><var>107.31</var>Sports Facilities Authority up to $1,600,000, if made after June 30, 2016, and before <br />
         		<a id="pl.107.32"></a><var>107.32</var>March 1, 2018. Only purchases made by the Minnesota Super Bowl Host Committee, the <br />
         		<a id="pl.108.1"></a><var>108.1</var>National Football League or its affiliates, or their employees or independent contractors, <br />
         		<a id="pl.108.2"></a><var>108.2</var>qualify to be reimbursed under this section.<br />
         		<a id="pl.108.3"></a><var>108.3</var>(b) For purposes of this subdivision:<br />
         		<a id="pl.108.4"></a><var>108.4</var>(1) "employee or independent contractor" means only those employees or <br />
         		<a id="pl.108.5"></a><var>108.5</var>independent contractors that make qualifying purchases that are reimbursed by the <br />
         		<a id="pl.108.6"></a><var>108.6</var>Minnesota Super Bowl Host Committee or the National Football League or its affiliates; and<br />
         		<a id="pl.108.7"></a><var>108.7</var>(2) "related events sponsored by the National Football League or its affiliates" <br />
         		<a id="pl.108.8"></a><var>108.8</var>includes but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, <br />
         		<a id="pl.108.9"></a><var>108.9</var>NFL Honors, and NFL House.<br />
         		<a id="pl.108.10"></a><var>108.10</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Operating reserve and capital reserve fund.</b> Notwithstanding the <br />
         		<a id="pl.108.11"></a><var>108.11</var>requirements of Minnesota Statutes, section 473J.13, subdivisions 2 and 4, up to <br />
         		<a id="pl.108.12"></a><var>108.12</var>$1,600,000 of the balance in the operating reserve or capital reserve fund may be used for <br />
         		<a id="pl.108.13"></a><var>108.13</var>the purposes of paying reimbursements authorized under subdivision 1.<br />
         		<a id="pl.108.14"></a><var>108.14</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.108.15"></a><var>108.15</var>June 30, 2016, and before March 1, 2018.<br />
         		<br />
         		<a id="bill.4.31.0"></a><a id="pl.108.16"></a><var>108.16</var>&#160;&#160;&#160;&#160;Sec. 31. <b>SEVERABILITY.</b><br />
         		<a id="pl.108.17"></a><var>108.17</var>If any provision of sections 2 to 5 or the application thereof is held invalid, such <br />
         		<a id="pl.108.18"></a><var>108.18</var>invalidity shall not affect the provisions or applications of the sections that can be given <br />
         		<a id="pl.108.19"></a><var>108.19</var>effect without the invalid provisions or applications.<br />
         		<a id="pl.108.20"></a><var>108.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.32.0"></a><a id="pl.108.21"></a><var>108.21</var>&#160;&#160;&#160;&#160;Sec. 32. <b>EFFECTIVE DATE.</b><br />
         		<a id="pl.108.22"></a><var>108.22</var>(a) The provisions of sections 2 to 5 are effective at the earlier of:<br />
         		<a id="pl.108.23"></a><var>108.23</var>(1) a decision by the United States Supreme Court modifying its decision in Quill <br />
         		<a id="pl.108.24"></a><var>108.24</var>Corp. v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a <br />
         		<a id="pl.108.25"></a><var>108.25</var>physical presence in the state to collect and remit sales tax; or<br />
         		<a id="pl.108.26"></a><var>108.26</var>(2) July 1, 2019.<br />
         		<a id="pl.108.27"></a><var>108.27</var>(b) Notwithstanding paragraph (a) or the provisions of sections 1 to 4, if a federal <br />
         		<a id="pl.108.28"></a><var>108.28</var>law is enacted authorizing a state to impose a requirement to collect and remit sales tax <br />
         		<a id="pl.108.29"></a><var>108.29</var>on retailers without a physical presence in the state, the commissioner must enforce the <br />
         		<a id="pl.108.30"></a><var>108.30</var>provisions of this section and sections 1 to 4 to the extent allowed under federal law.<br />
         		<a id="pl.108.31"></a><var>108.31</var>(c) The commissioner of revenue shall notify the revisor of statutes when either of <br />
         		<a id="pl.108.32"></a><var>108.32</var>the provisions in paragraph (a) or (b) apply.<br />
         		<br />
         		<a id="bill.5.0.0"></a><div class="xtend_ce"><a id="pl.109.1"></a><var>109.1</var><b>ARTICLE 5</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.109.2"></a><var>109.2</var><b>SPECIAL TAXES</b><br />
            		
         </div><br />
         		<a id="bill.5.1.0"></a><a id="pl.109.3"></a><var>109.3</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2014, section 296A.01, subdivision 12, is amended to <br />
         		<a id="pl.109.4"></a><var>109.4</var>read:<br />
         		<a id="pl.109.5"></a><var>109.5</var>&#160;&#160;&#160;&#160;Subd. 12. <b>Compressed natural gas or CNG.</b> "Compressed natural gas" or "CNG" <br />
         		<a id="pl.109.6"></a><var>109.6</var>means natural gas, primarily methane, condensed under high pressure and stored in <br />
         		<a id="pl.109.7"></a><var>109.7</var>specially designed storage tanks at between 2,000 and 3,600 pounds per square inch. <br />
         		<a id="pl.109.8"></a><var>109.8</var>For purposes of this chapter, the energy content of CNG is considered to be 1,000 900 <br />
         		<a id="pl.109.9"></a><var>109.9</var>BTUs per cubic foot.<br />
         		<a id="pl.109.10"></a><var>109.10</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.109.11"></a><var>109.11</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.2.0"></a><a id="pl.109.12"></a><var>109.12</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision <br />
         		<a id="pl.109.13"></a><var>109.13</var>to read:<br />
         		<a id="pl.109.14"></a><var>109.14</var>&#160;&#160;&#160;&#160;Subd. 13a. <b>Dealer of gasoline used as a substitute for aviation gasoline.</b> "Dealer <br />
         		<a id="pl.109.15"></a><var>109.15</var>of gasoline used as a substitute for aviation gasoline" means any person who sells gasoline <br />
         		<a id="pl.109.16"></a><var>109.16</var>on the premises of an airport as defined under section 360.013, subdivision 39, to be <br />
         		<a id="pl.109.17"></a><var>109.17</var>dispensed directly into the fuel tank of an aircraft.<br />
         		<a id="pl.109.18"></a><var>109.18</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.109.19"></a><var>109.19</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.3.0"></a><a id="pl.109.20"></a><var>109.20</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read:<br />
         		<a id="pl.109.21"></a><var>109.21</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Exemptions.</b> The provisions of subdivision 1 do not apply to gasoline or <br />
         		<a id="pl.109.22"></a><var>109.22</var>denatured ethanol purchased by:<br />
         		<a id="pl.109.23"></a><var>109.23</var>&#160;&#160;&#160;&#160;(1) a transit system or transit provider receiving financial assistance or <br />
         		<a id="pl.109.24"></a><var>109.24</var>reimbursement under section 
         <statute_ref>174.24</statute_ref>, 
         <statute_ref>256B.0625, subdivision 17</statute_ref>, or 
         <statute_ref>473.384</statute_ref>;<br />
         		<a id="pl.109.25"></a><var>109.25</var>&#160;&#160;&#160;&#160;(2) providers of transportation to recipients of medical assistance home and <br />
         		<a id="pl.109.26"></a><var>109.26</var>community-based services waivers enrolled in day programs, including adult day care, <br />
         		<a id="pl.109.27"></a><var>109.27</var>family adult day care, day treatment and habilitation, prevocational services, and <br />
         		<a id="pl.109.28"></a><var>109.28</var>structured day services;<br />
         		<a id="pl.109.29"></a><var>109.29</var>(3) an ambulance service licensed under chapter 144E;<br />
         		<a id="pl.109.30"></a><var>109.30</var>(4) providers of medical or dental services by a federally qualified health center, <br />
         		<a id="pl.109.31"></a><var>109.31</var>as defined under title 19 of the Social Security Act, as amended by Section 4161 of the <br />
         		<a id="pl.109.32"></a><var>109.32</var>Omnibus Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a <br />
         		<a id="pl.109.33"></a><var>109.33</var>mobile medical unit; or<br />
         		<a id="pl.110.1"></a><var>110.1</var>&#160;&#160;&#160;&#160;(5) a licensed distributor to be delivered to a terminal for use in blending; or<br />
         		<a id="pl.110.2"></a><var>110.2</var>&#160;&#160;&#160;&#160;(6) a dealer of gasoline used as a substitute for aviation gasoline.<br />
         		<a id="pl.110.3"></a><var>110.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.110.4"></a><var>110.4</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.4.0"></a><a id="pl.110.5"></a><var>110.5</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read:<br />
         		<a id="pl.110.6"></a><var>110.6</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Rate of tax.</b> The special fuel excise tax is imposed at the following rates:<br />
         		<a id="pl.110.7"></a><var>110.7</var>&#160;&#160;&#160;&#160;(a) Liquefied petroleum gas or propane is taxed at the rate of 
         <statute_ref>18.75 </statute_ref>cents per gallon.<br />
         		<a id="pl.110.8"></a><var>110.8</var>&#160;&#160;&#160;&#160;(b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.<br />
         		<a id="pl.110.9"></a><var>110.9</var>&#160;&#160;&#160;&#160;(c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic <br />
         		<a id="pl.110.10"></a><var>110.10</var>feet; or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline <br />
         		<a id="pl.110.11"></a><var>110.11</var>equivalent," as defined by the National Conference on Weights and Measures, is 5.66 <br />
         		<a id="pl.110.12"></a><var>110.12</var>pounds of natural gas or 126.67 cubic feet.<br />
         		<a id="pl.110.13"></a><var>110.13</var>&#160;&#160;&#160;&#160;(d) All other special fuel is taxed at the same rate as the gasoline excise tax as <br />
         		<a id="pl.110.14"></a><var>110.14</var>specified in section 
         <statute_ref>296A.07, subdivision 2</statute_ref>. The tax is payable in the form and manner <br />
         		<a id="pl.110.15"></a><var>110.15</var>prescribed by the commissioner.<br />
         		<a id="pl.110.16"></a><var>110.16</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.110.17"></a><var>110.17</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.5.0"></a><a id="pl.110.18"></a><var>110.18</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read:<br />
         		<a id="pl.110.19"></a><var>110.19</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Gasoline tax imposed.</b> Subject to any refunds or credits there is <br />
         		<a id="pl.110.20"></a><var>110.20</var>imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline received, <br />
         		<a id="pl.110.21"></a><var>110.21</var>sold, stored, or withdrawn from storage in this state and on all gasoline used as a substitute <br />
         		<a id="pl.110.22"></a><var>110.22</var>for aviation gasoline. Aviation gasoline is defined in section 
         <statute_ref>296A.01, subdivision 7</statute_ref>.<br />
         		<a id="pl.110.23"></a><var>110.23</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.110.24"></a><var>110.24</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.6.0"></a><a id="pl.110.25"></a><var>110.25</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read:<br />
         		<a id="pl.110.26"></a><var>110.26</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Exception to tax for aviation use.</b> The provisions of subdivisions 1 and 2 <br />
         		<a id="pl.110.27"></a><var>110.27</var>do not apply to gasoline used as a substitute for aviation gasoline, aviation gasoline, or <br />
         		<a id="pl.110.28"></a><var>110.28</var>special fuel purchased and placed in the fuel tanks of an aircraft outside the state, even <br />
         		<a id="pl.110.29"></a><var>110.29</var>though the gasoline may be consumed within this state.<br />
         		<a id="pl.110.30"></a><var>110.30</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.110.31"></a><var>110.31</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.7.0"></a><a id="pl.111.1"></a><var>111.1</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read:<br />
         		<a id="pl.111.2"></a><var>111.2</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Tax not on consumption.</b> The taxes imposed by subdivisions 1 and 2 are <br />
         		<a id="pl.111.3"></a><var>111.3</var>expressly declared not to be a tax upon consumption of gasoline used as a substitute for <br />
         		<a id="pl.111.4"></a><var>111.4</var>aviation gasoline, aviation gasoline, or special fuel by an aircraft.<br />
         		<a id="pl.111.5"></a><var>111.5</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.111.6"></a><var>111.6</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.8.0"></a><a id="pl.111.7"></a><var>111.7</var>&#160;&#160;&#160;&#160;Sec. 8. Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read:<br />
         		<a id="pl.111.8"></a><var>111.8</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Exemptions.</b> The provisions of subdivisions 1 and 2 do not apply to <br />
         		<a id="pl.111.9"></a><var>111.9</var>gasoline used as a substitute for aviation gasoline, aviation gasoline, or jet fuel purchased <br />
         		<a id="pl.111.10"></a><var>111.10</var>by an ambulance service licensed under chapter 144E.<br />
         		<a id="pl.111.11"></a><var>111.11</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.111.12"></a><var>111.12</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.9.0"></a><a id="pl.111.13"></a><var>111.13</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read:<br />
         		<a id="pl.111.14"></a><var>111.14</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Monthly gasoline report; shrinkage allowance.</b> (a) Except <br />
         		<a id="pl.111.15"></a><var>111.15</var>as provided in paragraph (e), on or before the 23rd day of each month, every person <br />
         		<a id="pl.111.16"></a><var>111.16</var>who is required to pay a gasoline tax shall file with the commissioner a report, in the <br />
         		<a id="pl.111.17"></a><var>111.17</var>form and manner prescribed by the commissioner, showing the number of gallons of <br />
         		<a id="pl.111.18"></a><var>111.18</var>petroleum products received by the reporter during the preceding calendar month, and <br />
         		<a id="pl.111.19"></a><var>111.19</var>other information the commissioner may require. A written report is deemed to have <br />
         		<a id="pl.111.20"></a><var>111.20</var>been filed as required in this subdivision if postmarked on or before the 23rd day of the <br />
         		<a id="pl.111.21"></a><var>111.21</var>month in which the tax is payable.<br />
         		<a id="pl.111.22"></a><var>111.22</var>(b) The number of gallons of gasoline must be reported in United States standard <br />
         		<a id="pl.111.23"></a><var>111.23</var>liquid gallons, 231 cubic inches, except that the commissioner may upon written <br />
         		<a id="pl.111.24"></a><var>111.24</var>application and for cause shown permit the distributor to report the number of gallons of <br />
         		<a id="pl.111.25"></a><var>111.25</var>gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application is <br />
         		<a id="pl.111.26"></a><var>111.26</var>granted, all gasoline covered in the application and allowed by the commissioner must <br />
         		<a id="pl.111.27"></a><var>111.27</var>continue to be reported by the distributor on the adjusted basis for a period of one year <br />
         		<a id="pl.111.28"></a><var>111.28</var>from the date of the granting of the application. The number of gallons of petroleum <br />
         		<a id="pl.111.29"></a><var>111.29</var>products other than gasoline must be reported as originally invoiced. Each report must <br />
         		<a id="pl.111.30"></a><var>111.30</var>show separately the number of gallons of aviation gasoline received by the reporter during <br />
         		<a id="pl.111.31"></a><var>111.31</var>each calendar month and the number of gallons of gasoline sold to a dealer of gasoline <br />
         		<a id="pl.111.32"></a><var>111.32</var>used as a substitute for aviation fuel during each calendar month.<br />
         		<a id="pl.112.1"></a><var>112.1</var>(c) Each report must also include the amount of gasoline tax on gasoline received by <br />
         		<a id="pl.112.2"></a><var>112.2</var>the reporter during the preceding month. In computing the tax a deduction of 2.5 percent <br />
         		<a id="pl.112.3"></a><var>112.3</var>of the quantity of gasoline received by a distributor shall be made for evaporation and loss. <br />
         		<a id="pl.112.4"></a><var>112.4</var>At the time of reporting, the reporter shall submit satisfactory evidence that one-third of <br />
         		<a id="pl.112.5"></a><var>112.5</var>the 2.5 percent deduction has been credited or paid to dealers on quantities sold to them.<br />
         		<a id="pl.112.6"></a><var>112.6</var>(d) Each report shall contain a confession of judgment for the amount of the tax <br />
         		<a id="pl.112.7"></a><var>112.7</var>shown due to the extent not timely paid.<br />
         		<a id="pl.112.8"></a><var>112.8</var>(e) Under certain circumstances and with the approval of the commissioner, <br />
         		<a id="pl.112.9"></a><var>112.9</var>taxpayers may be allowed to file reports annually.<br />
         		<a id="pl.112.10"></a><var>112.10</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.112.11"></a><var>112.11</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.10.0"></a><a id="pl.112.12"></a><var>112.12</var>&#160;&#160;&#160;&#160;Sec. 10. Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read:<br />
         		<a id="pl.112.13"></a><var>112.13</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Failure to use or sell for intended purpose; report required.</b> (a) Any <br />
         		<a id="pl.112.14"></a><var>112.14</var>person who buys gasoline from a dealer of gasoline used as a substitute for aviation <br />
         		<a id="pl.112.15"></a><var>112.15</var>gasoline, or buys aviation gasoline or special fuel for aircraft use and who has paid the <br />
         		<a id="pl.112.16"></a><var>112.16</var>excise taxes due directly or indirectly through the amount of the tax being included in the <br />
         		<a id="pl.112.17"></a><var>112.17</var>price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly <br />
         		<a id="pl.112.18"></a><var>112.18</var>sells it to any person for use in motor vehicles shall, on or before the 23rd day of the month <br />
         		<a id="pl.112.19"></a><var>112.19</var>following that in which such gasoline or special fuel was so used or sold, report the fact of <br />
         		<a id="pl.112.20"></a><var>112.20</var>the use or sale to the commissioner in the form and manner prescribed by the commissioner.<br />
         		<a id="pl.112.21"></a><var>112.21</var>(b) Any person who buys gasoline other than aviation gasoline and who has paid the <br />
         		<a id="pl.112.22"></a><var>112.22</var>motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being <br />
         		<a id="pl.112.23"></a><var>112.23</var>included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to any <br />
         		<a id="pl.112.24"></a><var>112.24</var>person to be used for the purpose of producing or generating power for propelling aircraft, <br />
         		<a id="pl.112.25"></a><var>112.25</var>or who receives, stores, or withdraws from storage gasoline to be used for that purpose, <br />
         		<a id="pl.112.26"></a><var>112.26</var>shall, on or before the 23rd day of the month following that in which such gasoline was so <br />
         		<a id="pl.112.27"></a><var>112.27</var>sold, stored, or withdrawn from storage, report the fact of the sale, storage, or withdrawal <br />
         		<a id="pl.112.28"></a><var>112.28</var>from storage to the commissioner in the form and manner prescribed by the commissioner.<br />
         		<a id="pl.112.29"></a><var>112.29</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.112.30"></a><var>112.30</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.11.0"></a><a id="pl.112.31"></a><var>112.31</var>&#160;&#160;&#160;&#160;Sec. 11. Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read:<br />
         		<a id="pl.112.32"></a><var>112.32</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Aviation refund requirements.</b> Any person claiming to be entitled <br />
         		<a id="pl.112.33"></a><var>112.33</var>to any refund or credit provided for in subdivision 3 shall receive the refund or credit <br />
         		<a id="pl.113.1"></a><var>113.1</var>upon filing with the commissioner a claim in such form and manner prescribed by the <br />
         		<a id="pl.113.2"></a><var>113.2</var>commissioner. The claim shall set forth, among other things, the total number of gallons <br />
         		<a id="pl.113.3"></a><var>113.3</var>of gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel <br />
         		<a id="pl.113.4"></a><var>113.4</var>for aircraft use upon which the claimant has directly or indirectly paid the excise tax <br />
         		<a id="pl.113.5"></a><var>113.5</var>provided for in this chapter, during the calendar year, which has been received, stored, or <br />
         		<a id="pl.113.6"></a><var>113.6</var>withdrawn from storage by the claimant in this state and not sold or otherwise disposed of <br />
         		<a id="pl.113.7"></a><var>113.7</var>to others. All claims for refunds under this subdivision shall be made on or before April <br />
         		<a id="pl.113.8"></a><var>113.8</var>30 following the end of the calendar year for which the refund is claimed.<br />
         		<a id="pl.113.9"></a><var>113.9</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.113.10"></a><var>113.10</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.12.0"></a><a id="pl.113.11"></a><var>113.11</var>&#160;&#160;&#160;&#160;Sec. 12. Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read:<br />
         		<a id="pl.113.12"></a><var>113.12</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Claim for refund; aviation tax.</b> (a) Any person who buys gasoline used <br />
         		<a id="pl.113.13"></a><var>113.13</var>as a substitute for aviation gasoline, aviation gasoline, or special fuel for aircraft use and <br />
         		<a id="pl.113.14"></a><var>113.14</var>who has paid the excise taxes directly or indirectly through the amount of the tax being <br />
         		<a id="pl.113.15"></a><var>113.15</var>included in the price, or otherwise, who does not use it in motor vehicles or receive, sell, <br />
         		<a id="pl.113.16"></a><var>113.16</var>store, or withdraw it from storage for the purpose of producing or generating power for <br />
         		<a id="pl.113.17"></a><var>113.17</var>propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing <br />
         		<a id="pl.113.18"></a><var>113.18</var>with the commissioner a claim in the form and manner prescribed by the commissioner. <br />
         		<a id="pl.113.19"></a><var>113.19</var>The claim shall state the total amount of the gasoline used as a substitute for aviation <br />
         		<a id="pl.113.20"></a><var>113.20</var>gasoline, aviation gasoline, or special fuel for aircraft use purchased and used by the <br />
         		<a id="pl.113.21"></a><var>113.21</var>applicant, and shall state when and for what purpose it was used. On being satisfied that <br />
         		<a id="pl.113.22"></a><var>113.22</var>the claimant is entitled to payment, the commissioner shall approve the claim and transmit <br />
         		<a id="pl.113.23"></a><var>113.23</var>it to the commissioner of management and budget. The postmark on the envelope in <br />
         		<a id="pl.113.24"></a><var>113.24</var>which a written claim is mailed determines the date of filing.<br />
         		<a id="pl.113.25"></a><var>113.25</var>(b) If a claim contains an error in preparation in computation or preparation, the <br />
         		<a id="pl.113.26"></a><var>113.26</var>commissioner is authorized to adjust the claim in accordance with the evidence shown on <br />
         		<a id="pl.113.27"></a><var>113.27</var>the claim or other information available to the commissioner.<br />
         		<a id="pl.113.28"></a><var>113.28</var>(c) An applicant who files a claim that is false or fraudulent, is subject to the <br />
         		<a id="pl.113.29"></a><var>113.29</var>penalties provided in section 
         <statute_ref>296A.23</statute_ref> for knowingly and willfully making a false claim.<br />
         		<a id="pl.113.30"></a><var>113.30</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.113.31"></a><var>113.31</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.13.0"></a><a id="pl.113.32"></a><var>113.32</var>&#160;&#160;&#160;&#160;Sec. 13. Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read:<br />
         		<a id="pl.114.1"></a><var>114.1</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Refund on graduated basis.</b> Any person who has directly or indirectly <br />
         		<a id="pl.114.2"></a><var>114.2</var>paid the excise tax on gasoline used as a substitute for aviation gasoline, aviation gasoline, <br />
         		<a id="pl.114.3"></a><var>114.3</var>or special fuel for aircraft use provided for by this chapter and either paid the airflight <br />
         		<a id="pl.114.4"></a><var>114.4</var>property tax under section 
         <statute_ref>270.072</statute_ref> or is an aerial applicator with a category B, general <br />
         		<a id="pl.114.5"></a><var>114.5</var>aerial license, under section 18B.33, shall, as to all such gasoline used as a substitute for <br />
         		<a id="pl.114.6"></a><var>114.6</var>aviation gasoline, aviation gasoline, and special fuel received, stored, or withdrawn from <br />
         		<a id="pl.114.7"></a><var>114.7</var>storage by the person in this state in any calendar year and not sold or otherwise disposed <br />
         		<a id="pl.114.8"></a><var>114.8</var>of to others, or intended for sale or other disposition to others, on which such tax has been <br />
         		<a id="pl.114.9"></a><var>114.9</var>so paid, be entitled to the following graduated reductions in such tax for that calendar <br />
         		<a id="pl.114.10"></a><var>114.10</var>year, to be obtained by means of the following refunds:<br />
         		<a id="pl.114.11"></a><var>114.11</var>(1) on each gallon of such gasoline used as a substitute for aviation gasoline, aviation <br />
         		<a id="pl.114.12"></a><var>114.12</var>gasoline, or special fuel up to 50,000 gallons, all but five cents per gallon;<br />
         		<a id="pl.114.13"></a><var>114.13</var>(2) on each gallon of such gasoline used as a substitute for aviation gasoline, aviation <br />
         		<a id="pl.114.14"></a><var>114.14</var>gasoline, or special fuel above 50,000 gallons and not more than 150,000 gallons, all <br />
         		<a id="pl.114.15"></a><var>114.15</var>but two cents per gallon;<br />
         		<a id="pl.114.16"></a><var>114.16</var>(3) on each gallon of such gasoline used as a substitute for aviation gasoline, aviation <br />
         		<a id="pl.114.17"></a><var>114.17</var>gasoline, or special fuel above 150,000 gallons and not more than 200,000 gallons, all <br />
         		<a id="pl.114.18"></a><var>114.18</var>but one cent per gallon;<br />
         		<a id="pl.114.19"></a><var>114.19</var>(4) on each gallon of such gasoline used as a substitute for aviation gasoline, aviation <br />
         		<a id="pl.114.20"></a><var>114.20</var>gasoline, or special fuel above 200,000, all but one-half cent per gallon.<br />
         		<a id="pl.114.21"></a><var>114.21</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.114.22"></a><var>114.22</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.14.0"></a><a id="pl.114.23"></a><var>114.23</var>&#160;&#160;&#160;&#160;Sec. 14. Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read:<br />
         		<a id="pl.114.24"></a><var>114.24</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Intent; gasoline use.</b> All gasoline received in this state and all <br />
         		<a id="pl.114.25"></a><var>114.25</var>gasoline produced in or brought into this state except aviation gasoline, gasoline sold to a <br />
         		<a id="pl.114.26"></a><var>114.26</var>dealer of gasoline used as a substitute for aviation gasoline, and marine gasoline shall be <br />
         		<a id="pl.114.27"></a><var>114.27</var>determined to be intended for use in motor vehicles in this state.<br />
         		<a id="pl.114.28"></a><var>114.28</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.114.29"></a><var>114.29</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.15.0"></a><a id="pl.114.30"></a><var>114.30</var>&#160;&#160;&#160;&#160;Sec. 15. Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read:<br />
         		<a id="pl.114.31"></a><var>114.31</var>&#160;&#160;&#160;&#160;Subd. 8. <b>Airports.</b> The revenues derived from the excise taxes on gasoline used as <br />
         		<a id="pl.114.32"></a><var>114.32</var>a substitute for aviation gasoline, aviation gasoline, and on special fuel received, sold, <br />
         		<a id="pl.114.33"></a><var>114.33</var>stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid into <br />
         		<a id="pl.115.1"></a><var>115.1</var>the state treasury and credited to the state airports fund. There is hereby appropriated such <br />
         		<a id="pl.115.2"></a><var>115.2</var>sums as are needed to carry out the provisions of this subdivision.<br />
         		<a id="pl.115.3"></a><var>115.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.115.4"></a><var>115.4</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.16.0"></a><a id="pl.115.5"></a><var>115.5</var>&#160;&#160;&#160;&#160;Sec. 16. Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read:<br />
         		<a id="pl.115.6"></a><var>115.6</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Retention.</b> All distributors, dealers, special fuel dealers, bulk <br />
         		<a id="pl.115.7"></a><var>115.7</var>purchasers, dealers of gasoline used as a substitute for aviation gasoline, and all users of <br />
         		<a id="pl.115.8"></a><var>115.8</var>special fuel shall keep a true and accurate record of all purchases, transfers, sales, and use <br />
         		<a id="pl.115.9"></a><var>115.9</var>of petroleum products and special fuel, including copies of all sales tickets issued, in a form <br />
         		<a id="pl.115.10"></a><var>115.10</var>and manner approved by the commissioner, and shall retain all such records for 3-1/2 years.<br />
         		<a id="pl.115.11"></a><var>115.11</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.115.12"></a><var>115.12</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.17.0"></a><a id="pl.115.13"></a><var>115.13</var>&#160;&#160;&#160;&#160;Sec. 17. Minnesota Statutes 2014, section 297E.02, subdivision 1, is amended to read:<br />
         		<a id="pl.115.14"></a><var>115.14</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Imposition.</b> (a) A tax is imposed on all lawful gambling other than <br />
         		<a id="pl.115.15"></a><var>115.15</var>(1) paper or electronic pull-tab deals or games; (2) tipboard deals or games; (3) electronic <br />
         		<a id="pl.115.16"></a><var>115.16</var>linked bingo; and (4) items listed in section 
         <statute_ref>297E.01, subdivision 8</statute_ref>, clauses (4) and (5), at <br />
         		<a id="pl.115.17"></a><var>115.17</var>the rate of 8.5 percent on the gross receipts as defined in section 
         <statute_ref>297E.01, subdivision 8</statute_ref>, <br />
         		<a id="pl.115.18"></a><var>115.18</var>less prizes actually paid. <br />
         		<a id="pl.115.19"></a><var>115.19</var>(b) A tax is imposed on the conduct of paper pull-tabs, at the rate of nine percent of <br />
         		<a id="pl.115.20"></a><var>115.20</var>the gross receipts, less prizes actually paid, of the pull-tab deal. The tax imposed under <br />
         		<a id="pl.115.21"></a><var>115.21</var>this paragraph applies only to paper pull-tabs sold at a bingo hall as defined in section <br />
         		<a id="pl.115.22"></a><var>115.22</var>349.12, subdivision 4a.<br />
         		<a id="pl.115.23"></a><var>115.23</var>(c) The tax imposed by this subdivision is in lieu of the tax imposed by section <br />
         		
         <statute_ref><a id="pl.115.24"></a><var>115.24</var>297A.62
         </statute_ref> and all local taxes and license fees except a fee authorized under section 
         <statute_ref>349.16, <br />
            		<a id="pl.115.25"></a><var>115.25</var>subdivision 8
         </statute_ref>, or a tax authorized under subdivision 5.<br />
         		<a id="pl.115.26"></a><var>115.26</var>(d) The tax imposed under this subdivision is payable by the organization or party <br />
         		<a id="pl.115.27"></a><var>115.27</var>conducting, directly or indirectly, the gambling.<br />
         		<a id="pl.115.28"></a><var>115.28</var><b>EFFECTIVE DATE.</b>This section is effective for gross receipts received on or <br />
         		<a id="pl.115.29"></a><var>115.29</var>after July 1, 2016.<br />
         		<br />
         		<a id="bill.5.18.0"></a><a id="pl.115.30"></a><var>115.30</var>&#160;&#160;&#160;&#160;Sec. 18. Minnesota Statutes 2015 Supplement, section 297E.02, subdivision 6, is <br />
         		<a id="pl.115.31"></a><var>115.31</var>amended to read:<br />
         		<a id="pl.116.1"></a><var>116.1</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Combined net receipts tax.</b> (a) In addition to the taxes imposed under <br />
         		<a id="pl.116.2"></a><var>116.2</var>subdivision 1, a tax is imposed on the combined net receipts of the organization. As used <br />
         		<a id="pl.116.3"></a><var>116.3</var>in this section, "combined net receipts" is the sum of the organization's gross receipts <br />
         		<a id="pl.116.4"></a><var>116.4</var>from lawful gambling less gross receipts directly derived from the conduct of paper <br />
         		<a id="pl.116.5"></a><var>116.5</var>bingo, raffles, and paddlewheels, as defined in section 
         <statute_ref>297E.01, subdivision 8</statute_ref>, and less <br />
         		<a id="pl.116.6"></a><var>116.6</var>the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, and <br />
         		<a id="pl.116.7"></a><var>116.7</var>paddlewheels, for the fiscal year. The combined net receipts of an organization are subject <br />
         		<a id="pl.116.8"></a><var>116.8</var>to a tax computed according to the following schedule:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="5"></col>
            <col width="20"></col>
            <col width="5"></col>
            <col width="27.5"></col>
            <col width="7.5"></col>
            <tr>
               <td><a id="pl.116.9"></a><var>116.9</var><br />
                  		<a id="pl.116.10"></a><var>116.10</var><br />
                  		<a id="pl.116.11"></a><var>116.11</var><br />
                  		
               </td>
               <td align="left"></td>
               <td align="left">If the combined net <br />
                  		receipts for the fiscal year <br />
                  		are:<br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">The tax is:<br />
                  		
               </td>
               <td align="left" valign="top"></td>
            </tr>
            <tr>
               <td><a id="pl.116.12"></a><var>116.12</var><br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">Not over $87,500<br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">nine percent<br />
                  		
               </td>
               <td align="left"></td>
            </tr>
            <tr>
               <td><a id="pl.116.13"></a><var>116.13</var><br />
                  		<a id="pl.116.14"></a><var>116.14</var><br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">Over $87,500, but not over <br />
                  		$122,500<br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">$7,875 plus 18 percent of the amount <br />
                  		over $87,500, but not over $122,500<br />
                  		
               </td>
               <td align="left"></td>
            </tr>
            <tr>
               <td><a id="pl.116.15"></a><var>116.15</var><br />
                  		<a id="pl.116.16"></a><var>116.16</var><br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">Over $122,500, but not <br />
                  		over $157,500<br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">$14,175 plus 27 percent of the amount <br />
                  		over $122,500, but not over $157,500<br />
                  		
               </td>
               <td align="left"></td>
            </tr>
            <tr>
               <td><a id="pl.116.17"></a><var>116.17</var><br />
                  		<a id="pl.116.18"></a><var>116.18</var><br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">Over $157,500<br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">$23,625 plus 36 percent of the <br />
                  		amount over $157,500<br />
                  		
               </td>
               <td align="left"></td>
            </tr>
         </table><a id="pl.116.19"></a><var>116.19</var>(b) On or before April 1, 2016, the commissioner shall estimate the total amount of <br />
         		<a id="pl.116.20"></a><var>116.20</var>revenue, including interest and penalties, that will be collected for fiscal year 2016 from <br />
         		<a id="pl.116.21"></a><var>116.21</var>taxes imposed under this chapter. If the amount estimated by the commissioner equals <br />
         		<a id="pl.116.22"></a><var>116.22</var>or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the <br />
         		<a id="pl.116.23"></a><var>116.23</var>rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a <br />
         		<a id="pl.116.24"></a><var>116.24</var>notice to that effect in the State Register and notify each taxpayer by June 1, 2016. If the <br />
         		<a id="pl.116.25"></a><var>116.25</var>rates under this section apply, the combined net receipts of an organization are subject to a <br />
         		<a id="pl.116.26"></a><var>116.26</var>tax computed according to the following schedule:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="5"></col>
            <col width="20"></col>
            <col width="5"></col>
            <col width="27.5"></col>
            <col width="7.5"></col>
            <tr>
               <td><a id="pl.116.27"></a><var>116.27</var><br />
                  		<a id="pl.116.28"></a><var>116.28</var><br />
                  		<a id="pl.116.29"></a><var>116.29</var><br />
                  		
               </td>
               <td></td>
               <td>If the combined net <br />
                  		receipts for the fiscal year <br />
                  		are:<br />
                  		
               </td>
               <td></td>
               <td valign="top">The tax is:<br />
                  		
               </td>
               <td valign="top"></td>
            </tr>
            <tr>
               <td><a id="pl.116.30"></a><var>116.30</var><br />
                  		
               </td>
               <td></td>
               <td>Not over $87,500<br />
                  		
               </td>
               <td></td>
               <td>8.5 percent<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.116.31"></a><var>116.31</var><br />
                  		<a id="pl.116.32"></a><var>116.32</var><br />
                  		
               </td>
               <td></td>
               <td valign="top">Over $87,500, but not over <br />
                  		$122,500<br />
                  		
               </td>
               <td></td>
               <td>$7,438 plus 17 percent of the amount <br />
                  		over $87,500, but not over $122,500<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.116.33"></a><var>116.33</var><br />
                  		<a id="pl.116.34"></a><var>116.34</var><br />
                  		<a id="pl.116.35"></a><var>116.35</var><br />
                  		
               </td>
               <td></td>
               <td valign="top">Over $122,500, but not <br />
                  		over $157,500<br />
                  		
               </td>
               <td></td>
               <td valign="top">$13,388 plus 25.5 percent of the <br />
                  		amount over $122,500, but not over <br />
                  		$157,500<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.116.36"></a><var>116.36</var><br />
                  		<a id="pl.116.37"></a><var>116.37</var><br />
                  		
               </td>
               <td></td>
               <td valign="top">Over $157,500<br />
                  		
               </td>
               <td></td>
               <td>$22,313 plus 34 percent of the <br />
                  		amount over $157,500<br />
                  		
               </td>
               <td></td>
            </tr>
         </table><a id="pl.116.38"></a><var>116.38</var>(c) Gross receipts derived from sports-themed tipboards are exempt from taxation <br />
         		<a id="pl.116.39"></a><var>116.39</var>under this section. For purposes of this paragraph, a sports-themed tipboard means a <br />
         		<a id="pl.116.40"></a><var>116.40</var>sports-themed tipboard as defined in section 
         <statute_ref>349.12, subdivision 34</statute_ref>, under which the <br />
         		<a id="pl.116.41"></a><var>116.41</var>winning numbers are determined by the numerical outcome of a professional sporting event.<br />
         		<a id="pl.117.1"></a><var>117.1</var>(d) Paper pull-tabs sold at a bingo hall as defined in section 349.12, subdivision 4a, <br />
         		<a id="pl.117.2"></a><var>117.2</var>are exempt from taxation under this subdivision.<br />
         		<a id="pl.117.3"></a><var>117.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2016.<br />
         		<br />
         		<a id="bill.5.19.0"></a><a id="pl.117.4"></a><var>117.4</var>&#160;&#160;&#160;&#160;Sec. 19. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision <br />
         		<a id="pl.117.5"></a><var>117.5</var>to read:<br />
         		<a id="pl.117.6"></a><var>117.6</var>&#160;&#160;&#160;&#160;Subd. 6a. <b>Bulk nicotine.</b> "Bulk nicotine" means any vapor product that contains a <br />
         		<a id="pl.117.7"></a><var>117.7</var>solution having a concentration of 50 milligrams of nicotine per milliliter or greater.<br />
         		<a id="pl.117.8"></a><var>117.8</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2017.<br />
         		<br />
         		<a id="bill.5.20.0"></a><a id="pl.117.9"></a><var>117.9</var>&#160;&#160;&#160;&#160;Sec. 20. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision <br />
         		<a id="pl.117.10"></a><var>117.10</var>to read:<br />
         		<a id="pl.117.11"></a><var>117.11</var>&#160;&#160;&#160;&#160;Subd. 6b. <b>Consumable material.</b> "Consumable material" means any vapor product <br />
         		<a id="pl.117.12"></a><var>117.12</var>that contains nicotine in a solution having a concentration of less than 50 milligrams <br />
         		<a id="pl.117.13"></a><var>117.13</var>of nicotine per milliliter.<br />
         		<a id="pl.117.14"></a><var>117.14</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2017.<br />
         		<br />
         		<a id="bill.5.21.0"></a><a id="pl.117.15"></a><var>117.15</var>&#160;&#160;&#160;&#160;Sec. 21. Minnesota Statutes 2014, section 297F.01, subdivision 19, is amended to read:<br />
         		<a id="pl.117.16"></a><var>117.16</var>&#160;&#160;&#160;&#160;Subd. 19. <b>Tobacco products.</b> (a) "Tobacco products" means any product <br />
         		<a id="pl.117.17"></a><var>117.17</var>containing, made, or derived from tobacco that is intended for human consumption, <br />
         		<a id="pl.117.18"></a><var>117.18</var>whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by <br />
         		<a id="pl.117.19"></a><var>117.19</var>any other means, or any component, part, or accessory of a tobacco product, including, <br />
         		<a id="pl.117.20"></a><var>117.20</var>but not limited to, cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, <br />
         		<a id="pl.117.21"></a><var>117.21</var>ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist <br />
         		<a id="pl.117.22"></a><var>117.22</var>tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and <br />
         		<a id="pl.117.23"></a><var>117.23</var>sweepings of tobacco, vapor products, and other kinds and forms of tobacco; but does <br />
         		<a id="pl.117.24"></a><var>117.24</var>not include cigarettes as defined in this section. Tobacco products excludes any tobacco <br />
         		<a id="pl.117.25"></a><var>117.25</var>product that has been approved by the United States Food and Drug Administration for <br />
         		<a id="pl.117.26"></a><var>117.26</var>sale as a tobacco cessation product, as a tobacco dependence product, or for other medical <br />
         		<a id="pl.117.27"></a><var>117.27</var>purposes, and is being marketed and sold solely for such an approved purpose.<br />
         		<a id="pl.117.28"></a><var>117.28</var>(b) Except for the imposition of tax under section 
         <statute_ref>297F.05, subdivisions 3</statute_ref> and 4, <br />
         		<a id="pl.117.29"></a><var>117.29</var>tobacco products includes a premium cigar, as defined in subdivision 13a.<br />
         		<a id="pl.117.30"></a><var>117.30</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2017.<br />
         		<br />
         		<a id="bill.5.22.0"></a><a id="pl.118.1"></a><var>118.1</var>&#160;&#160;&#160;&#160;Sec. 22. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision <br />
         		<a id="pl.118.2"></a><var>118.2</var>to read:<br />
         		<a id="pl.118.3"></a><var>118.3</var>&#160;&#160;&#160;&#160;Subd. 24. <b>Vapor products.</b> "Vapor products" means any noncombustible product <br />
         		<a id="pl.118.4"></a><var>118.4</var>that employs a heating element, power source, electronic circuit, or other electronic, <br />
         		<a id="pl.118.5"></a><var>118.5</var>chemical, or mechanical means, regardless of shape or size, that can be used to produce <br />
         		<a id="pl.118.6"></a><var>118.6</var>vapor from nicotine in a solution or other form. Vapor products includes any electronic <br />
         		<a id="pl.118.7"></a><var>118.7</var>cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device <br />
         		<a id="pl.118.8"></a><var>118.8</var>and any vapor cartridge or other container of bulk nicotine or consumable material in <br />
         		<a id="pl.118.9"></a><var>118.9</var>a solution or other form that is intended to be used with or in an electronic cigarette, <br />
         		<a id="pl.118.10"></a><var>118.10</var>electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.<br />
         		<a id="pl.118.11"></a><var>118.11</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2017.<br />
         		<br />
         		<a id="bill.5.23.0"></a><a id="pl.118.12"></a><var>118.12</var>&#160;&#160;&#160;&#160;Sec. 23. Minnesota Statutes 2014, section 297F.05, subdivision 1, is amended to read:<br />
         		<a id="pl.118.13"></a><var>118.13</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Rates; cigarettes.</b> A tax is imposed upon the sale of cigarettes in this <br />
         		<a id="pl.118.14"></a><var>118.14</var>state, upon having cigarettes in possession in this state with intent to sell, upon any person <br />
         		<a id="pl.118.15"></a><var>118.15</var>engaged in business as a distributor, and upon the use or storage by consumers, at the rate <br />
         		<a id="pl.118.16"></a><var>118.16</var>of 141.5 150 mills, or 
         <statute_ref>14.15</statute_ref> 15 cents, on each cigarette.<br />
         		<a id="pl.118.17"></a><var>118.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.24.0"></a><a id="pl.118.18"></a><var>118.18</var>&#160;&#160;&#160;&#160;Sec. 24. Minnesota Statutes 2014, section 297F.05, subdivision 3, is amended to read:<br />
         		<a id="pl.118.19"></a><var>118.19</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Rates; tobacco products.</b> (a) Except as provided in subdivision <br />
         		<a id="pl.118.20"></a><var>118.20</var>subdivisions 3a and 3b, a tax is imposed upon all tobacco products in this state and upon <br />
         		<a id="pl.118.21"></a><var>118.21</var>any person engaged in business as a distributor, at the rate of 95 percent of the wholesale <br />
         		<a id="pl.118.22"></a><var>118.22</var>sales price of the tobacco products. The tax is imposed at the time the distributor:<br />
         		<a id="pl.118.23"></a><var>118.23</var>(1) brings, or causes to be brought, into this state from outside the state tobacco <br />
         		<a id="pl.118.24"></a><var>118.24</var>products for sale;<br />
         		<a id="pl.118.25"></a><var>118.25</var>(2) makes, manufactures, or fabricates tobacco products in this state for sale in <br />
         		<a id="pl.118.26"></a><var>118.26</var>this state; or<br />
         		<a id="pl.118.27"></a><var>118.27</var>(3) ships or transports tobacco products to retailers in this state, to be sold by those <br />
         		<a id="pl.118.28"></a><var>118.28</var>retailers.<br />
         		<a id="pl.118.29"></a><var>118.29</var>(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a <br />
         		<a id="pl.118.30"></a><var>118.30</var>pack of 20 cigarettes weighing not more than three pounds per thousand, as established <br />
         		<a id="pl.118.31"></a><var>118.31</var>under subdivision 1, is imposed on each container of moist snuff.<br />
         		<a id="pl.118.32"></a><var>118.32</var>For purposes of this subdivision, a "container" means the smallest consumer-size can, <br />
         		<a id="pl.118.33"></a><var>118.33</var>package, or other container that is marketed or packaged by the manufacturer, distributor, <br />
         		<a id="pl.119.1"></a><var>119.1</var>or retailer for separate sale to a retail purchaser. When more than one container is <br />
         		<a id="pl.119.2"></a><var>119.2</var>packaged together, each container is subject to tax.<br />
         		<a id="pl.119.3"></a><var>119.3</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2017.<br />
         		<br />
         		<a id="bill.5.25.0"></a><a id="pl.119.4"></a><var>119.4</var>&#160;&#160;&#160;&#160;Sec. 25. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision <br />
         		<a id="pl.119.5"></a><var>119.5</var>to read:<br />
         		<a id="pl.119.6"></a><var>119.6</var>&#160;&#160;&#160;&#160;Subd. 3b. <b>Rates; vapor products.</b> (a) A tax is imposed upon all vapor products in <br />
         		<a id="pl.119.7"></a><var>119.7</var>this state and upon any person engaged in business as a tobacco product distributor. The <br />
         		<a id="pl.119.8"></a><var>119.8</var>tax imposed under this subdivision is imposed at the time the tobacco products distributor:<br />
         		<a id="pl.119.9"></a><var>119.9</var>(1) brings, or causes to be brought, into this state vapor products for sale;<br />
         		<a id="pl.119.10"></a><var>119.10</var>(2) makes, manufactures, or fabricates vapor products in this state, not otherwise <br />
         		<a id="pl.119.11"></a><var>119.11</var>taxed under this subdivision, for sale in this state; or<br />
         		<a id="pl.119.12"></a><var>119.12</var>(3) ships or transports vapor products to retailers in this state to be sold by those <br />
         		<a id="pl.119.13"></a><var>119.13</var>retailers.<br />
         		<a id="pl.119.14"></a><var>119.14</var>(b) For vapor products that contain bulk nicotine, the rate of tax is 300 percent of the <br />
         		<a id="pl.119.15"></a><var>119.15</var>wholesale sales price of the vapor product.<br />
         		<a id="pl.119.16"></a><var>119.16</var>(c) For vapor products that contain consumable material, the rate of tax is 45 percent <br />
         		<a id="pl.119.17"></a><var>119.17</var>of the wholesale sales price of the vapor product.<br />
         		<a id="pl.119.18"></a><var>119.18</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2017.<br />
         		<br />
         		<a id="bill.5.26.0"></a><a id="pl.119.19"></a><var>119.19</var>&#160;&#160;&#160;&#160;Sec. 26. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision <br />
         		<a id="pl.119.20"></a><var>119.20</var>to read:<br />
         		<a id="pl.119.21"></a><var>119.21</var>&#160;&#160;&#160;&#160;Subd. 4b. <b>Use tax; vapor products.</b> A tax is imposed upon the use or storage by <br />
         		<a id="pl.119.22"></a><var>119.22</var>consumers of all vapor products in this state, and upon such consumers, at the rate of 300 <br />
         		<a id="pl.119.23"></a><var>119.23</var>percent of the wholesale sales price of a vapor product containing bulk nicotine, and 45 <br />
         		<a id="pl.119.24"></a><var>119.24</var>percent of the wholesale sales price of a vapor product containing consumable material.<br />
         		<a id="pl.119.25"></a><var>119.25</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2017.<br />
         		<br />
         		<a id="bill.5.27.0"></a><a id="pl.119.26"></a><var>119.26</var>&#160;&#160;&#160;&#160;Sec. 27. Minnesota Statutes 2014, section 297H.04, subdivision 2, is amended to read:<br />
         		<a id="pl.119.27"></a><var>119.27</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Rate.</b> (a) Commercial generators that generate nonmixed municipal <br />
         		<a id="pl.119.28"></a><var>119.28</var>solid waste shall pay a solid waste management tax of 60 cents per noncompacted <br />
         		<a id="pl.119.29"></a><var>119.29</var>cubic yard of periodic waste collection capacity purchased by the generator, based on <br />
         		<a id="pl.119.30"></a><var>119.30</var>the size of the container for the nonmixed municipal solid waste, the actual volume, <br />
         		<a id="pl.119.31"></a><var>119.31</var>or the weight-to-volume conversion schedule in paragraph (c). However, the tax must <br />
         		<a id="pl.119.32"></a><var>119.32</var>be calculated by the waste management service provider using the same method for <br />
         		<a id="pl.120.1"></a><var>120.1</var>calculating the waste management service fee so that both are calculated according to <br />
         		<a id="pl.120.2"></a><var>120.2</var>container capacity, actual volume, or weight.<br />
         		<a id="pl.120.3"></a><var>120.3</var>(b) Notwithstanding section 
         <statute_ref>297H.02</statute_ref>, a residential generator that generates <br />
         		<a id="pl.120.4"></a><var>120.4</var>nonmixed municipal solid waste shall pay a solid waste management tax in the same <br />
         		<a id="pl.120.5"></a><var>120.5</var>manner as provided in paragraph (a).<br />
         		<a id="pl.120.6"></a><var>120.6</var>(c) The weight-to-volume conversion schedule for:<br />
         		<a id="pl.120.7"></a><var>120.7</var>(1) construction debris as defined in section 
         <statute_ref>115A.03, subdivision 7</statute_ref>, is one ton <br />
         		<a id="pl.120.8"></a><var>120.8</var>equals 
         <statute_ref>3.33</statute_ref> cubic yards, or $2 per ton equal to 60 cents per cubic yard. The commissioner <br />
         		<a id="pl.120.9"></a><var>120.9</var>of revenue, after consultation with the commissioner of the Pollution Control Agency, <br />
         		<a id="pl.120.10"></a><var>120.10</var>shall determine and may publish by notice a conversion schedule for construction debris;<br />
         		<a id="pl.120.11"></a><var>120.11</var>(2) industrial waste as defined in section 
         <statute_ref>115A.03, subdivision 13a</statute_ref>, is equal to <br />
         		<a id="pl.120.12"></a><var>120.12</var>60 cents per cubic yard. The commissioner of revenue after consultation with the <br />
         		<a id="pl.120.13"></a><var>120.13</var>commissioner of the Pollution Control Agency, shall determine, and may publish by <br />
         		<a id="pl.120.14"></a><var>120.14</var>notice, a conversion schedule for various industrial wastes; and<br />
         		<a id="pl.120.15"></a><var>120.15</var>(3) infectious waste as defined in section 
         <statute_ref>116.76, subdivision 12</statute_ref>, and pathological <br />
         		<a id="pl.120.16"></a><var>120.16</var>waste as defined in section 
         <statute_ref>116.76, subdivision 14</statute_ref>, is 150 pounds equals one cubic yard, or <br />
         		<a id="pl.120.17"></a><var>120.17</var>60 cents per 150 pounds.<br />
         		<a id="pl.120.18"></a><var>120.18</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.120.19"></a><var>120.19</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.5.28.0"></a><a id="pl.120.20"></a><var>120.20</var>&#160;&#160;&#160;&#160;Sec. 28. Minnesota Statutes 2014, section 349.12, is amended by adding a subdivision <br />
         		<a id="pl.120.21"></a><var>120.21</var>to read:<br />
         		<a id="pl.120.22"></a><var>120.22</var>&#160;&#160;&#160;&#160;Subd. 4a. <b>Bingo hall.</b> (a) "Bingo hall" means the premises on which an organization <br />
         		<a id="pl.120.23"></a><var>120.23</var>licensed under this chapter regularly conducts bingo if:<br />
         		<a id="pl.120.24"></a><var>120.24</var>(1) more than 50 percent of the organization's gross receipts from lawful gambling <br />
         		<a id="pl.120.25"></a><var>120.25</var>in the prior calendar year were attributable to the conduct of bingo or the organization had <br />
         		<a id="pl.120.26"></a><var>120.26</var>no receipts from lawful gambling in that year; or<br />
         		<a id="pl.120.27"></a><var>120.27</var>(2) no other organization conducts lawful gambling on the premises.<br />
         		<a id="pl.120.28"></a><var>120.28</var>(b) For purposes of this subdivision, "bingo" does not include a linked bingo game <br />
         		<a id="pl.120.29"></a><var>120.29</var>as defined in this section.<br />
         		<a id="pl.120.30"></a><var>120.30</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2016.<br />
         		<br />
         		<a id="bill.5.29.0"></a><a id="pl.120.31"></a><var>120.31</var>&#160;&#160;&#160;&#160;Sec. 29. <b> REPEALER.</b><br />
         		<a id="pl.120.32"></a><var>120.32</var>(a) Minnesota Statutes 2014, section 297F.05, subdivision 1a, is repealed.<br />
         		<a id="pl.120.33"></a><var>120.33</var>(b) Minnesota Rules, part 8125.1300, subpart 3, is repealed.<br />
         		<a id="pl.121.1"></a><var>121.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.6.0.0"></a><div class="xtend_ce"><a id="pl.121.2"></a><var>121.2</var><b>ARTICLE 6</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.121.3"></a><var>121.3</var><b>MINERALS</b><br />
            		
         </div><br />
         		<a id="bill.6.1.0"></a><a id="pl.121.4"></a><var>121.4</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2014, section 298.24, is amended by adding a <br />
         		<a id="pl.121.5"></a><var>121.5</var>subdivision to read:<br />
         		<a id="pl.121.6"></a><var>121.6</var>&#160;&#160;&#160;&#160;Subd. 5. <b>TEDF; deposits redirected.</b> (a) For concentrates produced by a plant <br />
         		<a id="pl.121.7"></a><var>121.7</var>subject to a reimbursement agreement dated September 9, 2008, by and among Itasca <br />
         		<a id="pl.121.8"></a><var>121.8</var>County, Essar Global Limited, and Minnesota Steel Industries LLC, the provisions of <br />
         		<a id="pl.121.9"></a><var>121.9</var>sections 298.227 and 298.28, subdivision 9a, do not apply to the plant's production.<br />
         		<a id="pl.121.10"></a><var>121.10</var>(b) All amounts not deposited in the taconite economic development fund as a <br />
         		<a id="pl.121.11"></a><var>121.11</var>result of paragraph (a) must be deposited in the Douglas J. Johnson economic protection <br />
         		<a id="pl.121.12"></a><var>121.12</var>trust fund created under section 298.292.<br />
         		<a id="pl.121.13"></a><var>121.13</var>(c) The provisions of this subdivision expire upon certification by the commissioner <br />
         		<a id="pl.121.14"></a><var>121.14</var>of employment and economic development that all requirements of the reimbursement <br />
         		<a id="pl.121.15"></a><var>121.15</var>agreement, as specified in paragraph (a), are satisfied.<br />
         		<a id="pl.121.16"></a><var>121.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.6.2.0"></a><a id="pl.121.17"></a><var>121.17</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read:<br />
         		<a id="pl.121.18"></a><var>121.18</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Cities; towns.</b> (a) 12.5 cents per taxable ton, less any amount distributed <br />
         		<a id="pl.121.19"></a><var>121.19</var>under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid <br />
         		<a id="pl.121.20"></a><var>121.20</var>account to be distributed as provided in section 
         <statute_ref>298.282</statute_ref>.<br />
         		<a id="pl.121.21"></a><var>121.21</var>&#160;&#160;&#160;&#160;(b) An amount must be allocated to towns or cities that is annually certified by <br />
         		<a id="pl.121.22"></a><var>121.22</var>the county auditor of a county containing a taconite tax relief area as defined in section <br />
         		
         <statute_ref><a id="pl.121.23"></a><var>121.23</var>273.134, paragraph (b)
         </statute_ref>, within which there is (1) an organized township if, as of January <br />
         		<a id="pl.121.24"></a><var>121.24</var>2, 1982, more than 75 percent of the assessed valuation of the township consists of iron <br />
         		<a id="pl.121.25"></a><var>121.25</var>ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation <br />
         		<a id="pl.121.26"></a><var>121.26</var>of the city consists of iron ore.<br />
         		<a id="pl.121.27"></a><var>121.27</var>&#160;&#160;&#160;&#160;(c) The amount allocated under paragraph (b) will be the portion of a township's or <br />
         		<a id="pl.121.28"></a><var>121.28</var>city's certified levy equal to the proportion of (1) the difference between 50 percent of <br />
         		<a id="pl.121.29"></a><var>121.29</var>January 2, 1982, assessed value in the case of a township and 50 percent of the January 2, <br />
         		<a id="pl.121.30"></a><var>121.30</var>1980, assessed value in the case of a city and its current assessed value to (2) the sum of <br />
         		<a id="pl.121.31"></a><var>121.31</var>its current assessed value plus the difference determined in (1), provided that the amount <br />
         		<a id="pl.121.32"></a><var>121.32</var>distributed shall not exceed $55 per capita in the case of a township or $75 per capita in <br />
         		<a id="pl.121.33"></a><var>121.33</var>the case of a city. For purposes of this limitation, population will be determined according <br />
         		<a id="pl.121.34"></a><var>121.34</var>to the 1980 decennial census conducted by the United States Bureau of the Census. If the <br />
         		<a id="pl.122.1"></a><var>122.1</var>current assessed value of the township exceeds 50 percent of the township's January 2, <br />
         		<a id="pl.122.2"></a><var>122.2</var>1982, assessed value, or if the current assessed value of the city exceeds 50 percent of the <br />
         		<a id="pl.122.3"></a><var>122.3</var>city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this <br />
         		<a id="pl.122.4"></a><var>122.4</var>paragraph, "assessed value," when used in reference to years other than 1980 or 1982, <br />
         		<a id="pl.122.5"></a><var>122.5</var>means the appropriate net tax capacities multiplied by 10.2.<br />
         		<a id="pl.122.6"></a><var>122.6</var>&#160;&#160;&#160;&#160;(d) In addition to other distributions under this subdivision, three 3.25 cents per <br />
         		<a id="pl.122.7"></a><var>122.7</var>taxable ton for distributions in 2009 2017 and subsequent years must be allocated for <br />
         		<a id="pl.122.8"></a><var>122.8</var>distribution to (1) towns that are entirely located within the taconite tax relief area defined <br />
         		<a id="pl.122.9"></a><var>122.9</var>in section 
         <statute_ref>273.134</statute_ref>, paragraph (b); and (2) the following unorganized territories in St. <br />
         		<a id="pl.122.10"></a><var>122.10</var>Louis County and Itasca County: 56-17; 58-22; 59-16; 59-21; 60-18; and 60-19. For <br />
         		<a id="pl.122.11"></a><var>122.11</var>distribution in 2010 through 2014 and for distribution distributions in 2018 and subsequent <br />
         		<a id="pl.122.12"></a><var>122.12</var>years, the three-cent 3.25-cent amount must be annually increased in the same proportion <br />
         		<a id="pl.122.13"></a><var>122.13</var>as the increase in the implicit price deflator as provided in section 
         <statute_ref>298.24, subdivision 1</statute_ref>. <br />
         		<a id="pl.122.14"></a><var>122.14</var>The amount available under this paragraph will must be distributed to eligible towns  and <br />
         		<a id="pl.122.15"></a><var>122.15</var>eligible unorganized territories on a per capita basis, provided that no town or unorganized <br />
         		<a id="pl.122.16"></a><var>122.16</var>territory may receive more than $50,000 in any year under this paragraph. Any amount of <br />
         		<a id="pl.122.17"></a><var>122.17</var>the distribution that exceeds the $50,000 limitation for a town or unorganized territory <br />
         		<a id="pl.122.18"></a><var>122.18</var>under this paragraph must be redistributed on a per capita basis among the other eligible <br />
         		<a id="pl.122.19"></a><var>122.19</var>towns and eligible unorganized territories, to whose distributions do not exceed $50,000. <br />
         		<a id="pl.122.20"></a><var>122.20</var>The amount available to unorganized territories in St. Louis County and Itasca County <br />
         		<a id="pl.122.21"></a><var>122.21</var>may be held by the county and combined for public infrastructure projects for the specified <br />
         		<a id="pl.122.22"></a><var>122.22</var>unorganized territories.<br />
         		<a id="pl.122.23"></a><var>122.23</var><b>EFFECTIVE DATE.</b>This section is effective for distributions beginning in 2017 <br />
         		<a id="pl.122.24"></a><var>122.24</var>and thereafter.<br />
         		<br />
         		<a id="bill.6.3.0"></a><a id="pl.122.25"></a><var>122.25</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 298.28, subdivision 5, is amended to read:<br />
         		<a id="pl.122.26"></a><var>122.26</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Counties.</b> (a) 21.05 cents per taxable ton for distributions in 2015 through <br />
         		<a id="pl.122.27"></a><var>122.27</var>2023, and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated <br />
         		<a id="pl.122.28"></a><var>122.28</var>to counties to be distributed, based upon certification by the commissioner of revenue, <br />
         		<a id="pl.122.29"></a><var>122.29</var>under paragraphs (b) to (d).<br />
         		<a id="pl.122.30"></a><var>122.30</var>&#160;&#160;&#160;&#160;(b) 10.525 cents per taxable ton shall be distributed to the county in which the <br />
         		<a id="pl.122.31"></a><var>122.31</var>taconite is mined or quarried or in which the concentrate is produced, less any amount <br />
         		<a id="pl.122.32"></a><var>122.32</var>which is to be distributed pursuant to paragraph (c). The apportionment formula prescribed <br />
         		<a id="pl.122.33"></a><var>122.33</var>in subdivision 2 is the basis for the distribution.<br />
         		<a id="pl.122.34"></a><var>122.34</var>&#160;&#160;&#160;&#160;(c) If 1.0 cent per taxable ton of the tax distributed to the counties pursuant to <br />
         		<a id="pl.122.35"></a><var>122.35</var>paragraph (b) shall be paid to a county that received a distribution under this section <br />
         		<a id="pl.123.1"></a><var>123.1</var>in 2000 because there was located in the county an electric power plant owned by and <br />
         		<a id="pl.123.2"></a><var>123.2</var>providing the primary source of power for a taxpayer mining and concentrating taconite <br />
         		<a id="pl.123.3"></a><var>123.3</var>is located in a different county other than the county in which the mining and the <br />
         		<a id="pl.123.4"></a><var>123.4</var>concentrating processes are conducted, one cent per taxable ton of the tax distributed to <br />
         		<a id="pl.123.5"></a><var>123.5</var>the counties pursuant to paragraph (b) and imposed on and collected from such taxpayer <br />
         		<a id="pl.123.6"></a><var>123.6</var>shall be paid to the county in which the power plant is located.<br />
         		<a id="pl.123.7"></a><var>123.7</var>&#160;&#160;&#160;&#160;(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 <br />
         		<a id="pl.123.8"></a><var>123.8</var>cents per taxable ton for distributions beginning in 2024, shall be paid to the county from <br />
         		<a id="pl.123.9"></a><var>123.9</var>which the taconite was mined, quarried or concentrated to be deposited in the county road <br />
         		<a id="pl.123.10"></a><var>123.10</var>and bridge fund. If the mining, quarrying and concentrating, or separate steps in any of <br />
         		<a id="pl.123.11"></a><var>123.11</var>those processes are carried on in more than one county, the commissioner shall follow the <br />
         		<a id="pl.123.12"></a><var>123.12</var>apportionment formula prescribed in subdivision 2.<br />
         		<a id="pl.123.13"></a><var>123.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.6.4.0"></a><a id="pl.123.14"></a><var>123.14</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:<br />
         		<a id="pl.123.15"></a><var>123.15</var>&#160;&#160;&#160;&#160;Subd. 7a. <b>Iron Range school consolidation and cooperatively operated school </b><br />
         		<a id="pl.123.16"></a><var>123.16</var><b>account.</b> The following amounts must be allocated to the Iron Range Resources and <br />
         		<a id="pl.123.17"></a><var>123.17</var>Rehabilitation Board to be deposited in the Iron Range school consolidation and <br />
         		<a id="pl.123.18"></a><var>123.18</var>cooperatively operated school account that is hereby created:<br />
         		<a id="pl.123.19"></a><var>123.19</var>(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax <br />
         		<a id="pl.123.20"></a><var>123.20</var>imposed under section 
         <statute_ref>298.24</statute_ref>; and (ii) for distributions beginning in 2024, five cents per <br />
         		<a id="pl.123.21"></a><var>123.21</var>taxable ton of the tax imposed under section 
         <statute_ref>298.24</statute_ref>;<br />
         		<a id="pl.123.22"></a><var>123.22</var>(2) the amount as determined under section 
         <statute_ref>298.17</statute_ref>, paragraph (b), clause (3);<br />
         		<a id="pl.123.23"></a><var>123.23</var>(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax <br />
         		<a id="pl.123.24"></a><var>123.24</var>proceeds attributable to the increase in the implicit price deflator as provided in section <br />
         		
         <statute_ref><a id="pl.123.25"></a><var>123.25</var>298.24, subdivision 1
         </statute_ref>, with the remaining one-third to be distributed to the Douglas J. <br />
         		<a id="pl.123.26"></a><var>123.26</var>Johnson economic protection trust fund;<br />
         		<a id="pl.123.27"></a><var>123.27</var>(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the <br />
         		<a id="pl.123.28"></a><var>123.28</var>increased tax proceeds attributable to the increase in the implicit price deflator as provided <br />
         		<a id="pl.123.29"></a><var>123.29</var>in section 
         <statute_ref>298.24, subdivision 1</statute_ref>, for distribution years 2015 and 2016, with the remaining <br />
         		<a id="pl.123.30"></a><var>123.30</var>one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and<br />
         		<a id="pl.123.31"></a><var>123.31</var>(iii) for distributions in 2017 and thereafter, an amount equal to two-thirds of the <br />
         		<a id="pl.123.32"></a><var>123.32</var>sum of the increased tax proceeds attributable to the increase in the implicit price deflator <br />
         		<a id="pl.123.33"></a><var>123.33</var>as provided in section 
         <statute_ref>298.24, subdivision 1</statute_ref>, for distribution years 2015, 2016, and <br />
         		<a id="pl.123.34"></a><var>123.34</var>2017, with the remaining one-third to be distributed to the Douglas J. Johnson economic <br />
         		<a id="pl.123.35"></a><var>123.35</var>protection trust fund; and<br />
         		<a id="pl.124.1"></a><var>124.1</var>(4) any other amount as provided by law.<br />
         		<a id="pl.124.2"></a><var>124.2</var>Expenditures from this account shall be made only to provide disbursements to <br />
         		<a id="pl.124.3"></a><var>124.3</var>assist school districts with the payment of bonds that were issued for qualified school <br />
         		<a id="pl.124.4"></a><var>124.4</var>projects, or for any other school disbursement as approved by the Iron Range Resources <br />
         		<a id="pl.124.5"></a><var>124.5</var>and Rehabilitation Board. For purposes of this section, "qualified school projects" means <br />
         		<a id="pl.124.6"></a><var>124.6</var>school projects within the taconite assistance area as defined in section 
         <statute_ref>273.1341</statute_ref>, that were <br />
         		<a id="pl.124.7"></a><var>124.7</var>(1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner <br />
         		<a id="pl.124.8"></a><var>124.8</var>of education pursuant to section 
         <statute_ref>123B.71</statute_ref>.<br />
         		<a id="pl.124.9"></a><var>124.9</var>Beginning in fiscal year 2019, the disbursement to school districts for payments for <br />
         		<a id="pl.124.10"></a><var>124.10</var>bonds issued under section 
         <statute_ref>123A.482</statute_ref>, subdivision 9, must be increased each year to <br />
         		<a id="pl.124.11"></a><var>124.11</var>offset any reduction in debt service equalization aid that the school district qualifies for in <br />
         		<a id="pl.124.12"></a><var>124.12</var>that year, under section 
         <statute_ref>123B.53, subdivision 6</statute_ref>, compared with the amount the school <br />
         		<a id="pl.124.13"></a><var>124.13</var>district qualified for in fiscal year 2018.<br />
         		<a id="pl.124.14"></a><var>124.14</var>No expenditure under this section shall be made unless approved by seven members <br />
         		<a id="pl.124.15"></a><var>124.15</var>of the Iron Range Resources and Rehabilitation Board.<br />
         		<a id="pl.124.16"></a><var>124.16</var><b>EFFECTIVE DATE.</b>This section is effective for distributions beginning in 2017 <br />
         		<a id="pl.124.17"></a><var>124.17</var>and thereafter.<br />
         		<br />
         		<a id="bill.7.0.0"></a><div class="xtend_ce"><a id="pl.124.18"></a><var>124.18</var><b>ARTICLE 7</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.124.19"></a><var>124.19</var><b>LOCAL DEVELOPMENT</b><br />
            		
         </div><br />
         		<a id="bill.7.1.0"></a><a id="pl.124.20"></a><var>124.20</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2014, section 469.1763, subdivision 1, is amended to read:<br />
         		<a id="pl.124.21"></a><var>124.21</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br />
         		<a id="pl.124.22"></a><var>124.22</var>have the meanings given.<br />
         		<a id="pl.124.23"></a><var>124.23</var>(b) "Activities" means acquisition of property, clearing of land, site preparation, soils <br />
         		<a id="pl.124.24"></a><var>124.24</var>correction, removal of hazardous waste or pollution, installation of utilities, construction <br />
         		<a id="pl.124.25"></a><var>124.25</var>of public or private improvements, and other similar activities, but only to the extent that <br />
         		<a id="pl.124.26"></a><var>124.26</var>tax increment revenues may be spent for such purposes under other law.<br />
         		<a id="pl.124.27"></a><var>124.27</var>(c) "Third party" means an entity other than (1) the person receiving the benefit <br />
         		<a id="pl.124.28"></a><var>124.28</var>of assistance financed with tax increments, or (2) the municipality or the development <br />
         		<a id="pl.124.29"></a><var>124.29</var>authority or other person substantially under the control of the municipality.<br />
         		<a id="pl.124.30"></a><var>124.30</var>(d) "Revenues derived from tax increments paid by properties in the district" means <br />
         		<a id="pl.124.31"></a><var>124.31</var>only tax increment as defined in section 
         <statute_ref>469.174, subdivision 25</statute_ref>, clause (1), and does <br />
         		<a id="pl.124.32"></a><var>124.32</var>not include tax increment as defined in section 
         <statute_ref>469.174, subdivision 25</statute_ref>, clauses (2), <br />
         		<a id="pl.124.33"></a><var>124.33</var>(3), and (4) to (5).<br />
         		<a id="pl.124.34"></a><var>124.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.7.2.0"></a><a id="pl.125.1"></a><var>125.1</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 469.1763, subdivision 2, is amended to read:<br />
         		<a id="pl.125.2"></a><var>125.2</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Expenditures outside district.</b> (a) For each tax increment financing <br />
         		<a id="pl.125.3"></a><var>125.3</var>district, an amount equal to at least 75 percent of the total revenue derived from tax <br />
         		<a id="pl.125.4"></a><var>125.4</var>increments paid by properties in the district must be expended on activities in the district <br />
         		<a id="pl.125.5"></a><var>125.5</var>or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities <br />
         		<a id="pl.125.6"></a><var>125.6</var>in the district or to pay, or secure payment of, debt service on credit enhanced bonds. <br />
         		<a id="pl.125.7"></a><var>125.7</var>For districts, other than redevelopment districts for which the request for certification <br />
         		<a id="pl.125.8"></a><var>125.8</var>was made after June 30, 1995, the in-district percentage for purposes of the preceding <br />
         		<a id="pl.125.9"></a><var>125.9</var>sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax <br />
         		<a id="pl.125.10"></a><var>125.10</var>increments paid by properties in the district may be expended, through a development fund <br />
         		<a id="pl.125.11"></a><var>125.11</var>or otherwise, on activities outside of the district but within the defined geographic area of <br />
         		<a id="pl.125.12"></a><var>125.12</var>the project except to pay, or secure payment of, debt service on credit enhanced bonds. <br />
         		<a id="pl.125.13"></a><var>125.13</var>For districts, other than redevelopment districts for which the request for certification was <br />
         		<a id="pl.125.14"></a><var>125.14</var>made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is <br />
         		<a id="pl.125.15"></a><var>125.15</var>20 percent. The revenue revenues derived from tax increments for paid by properties in <br />
         		<a id="pl.125.16"></a><var>125.16</var>the district that are expended on costs under section 
         <statute_ref>469.176, subdivision 4h</statute_ref>, paragraph <br />
         		<a id="pl.125.17"></a><var>125.17</var>(b), may be deducted first before calculating the percentages that must be expended within <br />
         		<a id="pl.125.18"></a><var>125.18</var>and without the district.<br />
         		<a id="pl.125.19"></a><var>125.19</var>&#160;&#160;&#160;&#160;(b) In the case of a housing district, a housing project, as defined in section 
         <statute_ref>469.174, <br />
            		<a id="pl.125.20"></a><var>125.20</var>subdivision 11
         </statute_ref>, is an activity in the district.<br />
         		<a id="pl.125.21"></a><var>125.21</var>&#160;&#160;&#160;&#160;(c) All administrative expenses are for activities outside of the district, except that <br />
         		<a id="pl.125.22"></a><var>125.22</var>if the only expenses for activities outside of the district under this subdivision are for <br />
         		<a id="pl.125.23"></a><var>125.23</var>the purposes described in paragraph (d), administrative expenses will be considered as <br />
         		<a id="pl.125.24"></a><var>125.24</var>expenditures for activities in the district.<br />
         		<a id="pl.125.25"></a><var>125.25</var>&#160;&#160;&#160;&#160;(d) The authority may elect, in the tax increment financing plan for the district, <br />
         		<a id="pl.125.26"></a><var>125.26</var>to increase by up to ten percentage points the permitted amount of expenditures for <br />
         		<a id="pl.125.27"></a><var>125.27</var>activities located outside the geographic area of the district under paragraph (a). As <br />
         		<a id="pl.125.28"></a><var>125.28</var>permitted by section 
         <statute_ref>469.176, subdivision 4k</statute_ref>, the expenditures, including the permitted <br />
         		<a id="pl.125.29"></a><var>125.29</var>expenditures under paragraph (a), need not be made within the geographic area of the <br />
         		<a id="pl.125.30"></a><var>125.30</var>project. Expenditures that meet the requirements of this paragraph are legally permitted <br />
         		<a id="pl.125.31"></a><var>125.31</var>expenditures of the district, notwithstanding section 
         <statute_ref>469.176, subdivisions 4b, 4c, and 4j</statute_ref>. <br />
         		<a id="pl.125.32"></a><var>125.32</var>To qualify for the increase under this paragraph, the expenditures must:<br />
         		<a id="pl.125.33"></a><var>125.33</var>&#160;&#160;&#160;&#160;(1) be used exclusively to assist housing that meets the requirement for a qualified <br />
         		<a id="pl.125.34"></a><var>125.34</var>low-income building, as that term is used in section 42 of the Internal Revenue Code; and<br />
         		<a id="pl.126.1"></a><var>126.1</var>&#160;&#160;&#160;&#160;(2) not exceed the qualified basis of the housing, as defined under section 42(c) of <br />
         		<a id="pl.126.2"></a><var>126.2</var>the Internal Revenue Code, less the amount of any credit allowed under section 42 of <br />
         		<a id="pl.126.3"></a><var>126.3</var>the Internal Revenue Code; and<br />
         		<a id="pl.126.4"></a><var>126.4</var>&#160;&#160;&#160;&#160;(3) be used to:<br />
         		<a id="pl.126.5"></a><var>126.5</var>&#160;&#160;&#160;&#160;(i) acquire and prepare the site of the housing;<br />
         		<a id="pl.126.6"></a><var>126.6</var>&#160;&#160;&#160;&#160;(ii) acquire, construct, or rehabilitate the housing; or<br />
         		<a id="pl.126.7"></a><var>126.7</var>&#160;&#160;&#160;&#160;(iii) make public improvements directly related to the housing; or<br />
         		<a id="pl.126.8"></a><var>126.8</var>(4) be used to develop housing:<br />
         		<a id="pl.126.9"></a><var>126.9</var>(i) if the market value of the housing does not exceed the lesser of:<br />
         		<a id="pl.126.10"></a><var>126.10</var>(A) 150 percent of the average market value of single-family homes in that <br />
         		<a id="pl.126.11"></a><var>126.11</var>municipality; or<br />
         		<a id="pl.126.12"></a><var>126.12</var>(B) $200,000 for municipalities located in the metropolitan area, as defined in <br />
         		<a id="pl.126.13"></a><var>126.13</var>section 
         <statute_ref>473.121</statute_ref>, or $125,000 for all other municipalities; and<br />
         		<a id="pl.126.14"></a><var>126.14</var>(ii) if the expenditures are used to pay the cost of site acquisition, relocation, <br />
         		<a id="pl.126.15"></a><var>126.15</var>demolition of existing structures, site preparation, and pollution abatement on one or <br />
         		<a id="pl.126.16"></a><var>126.16</var>more parcels, if the parcel contains a residence containing one to four family dwelling <br />
         		<a id="pl.126.17"></a><var>126.17</var>units that has been vacant for six or more months and is in foreclosure as defined in <br />
         		<a id="pl.126.18"></a><var>126.18</var>section 
         <statute_ref>325N.10, subdivision 7</statute_ref>, but without regard to whether the residence is the owner's <br />
         		<a id="pl.126.19"></a><var>126.19</var>principal residence, and only after the redemption period has expired.<br />
         		<a id="pl.126.20"></a><var>126.20</var>&#160;&#160;&#160;&#160;(e) For a district created within a biotechnology and health sciences industry zone <br />
         		<a id="pl.126.21"></a><var>126.21</var>as defined in Minnesota Statutes 2012, section 
         <statute_ref>469.330, subdivision 6</statute_ref>, or for an existing <br />
         		<a id="pl.126.22"></a><var>126.22</var>district located within such a zone, tax increment derived from such a district may be <br />
         		<a id="pl.126.23"></a><var>126.23</var>expended outside of the district but within the zone only for expenditures required for the <br />
         		<a id="pl.126.24"></a><var>126.24</var>construction of public infrastructure necessary to support the activities of the zone, land <br />
         		<a id="pl.126.25"></a><var>126.25</var>acquisition, and other redevelopment costs as defined in section 
         <statute_ref>469.176, subdivision 4j</statute_ref>. <br />
         		<a id="pl.126.26"></a><var>126.26</var>These expenditures are considered as expenditures for activities within the district. The <br />
         		<a id="pl.126.27"></a><var>126.27</var>authority provided by this paragraph expires for expenditures made after the later of (1) <br />
         		<a id="pl.126.28"></a><var>126.28</var>December 31, 2015, or (2) the end of the five-year period beginning on the date the district <br />
         		<a id="pl.126.29"></a><var>126.29</var>was certified, provided that date was before January 1, 2016.<br />
         		<a id="pl.126.30"></a><var>126.30</var>(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. <br />
         		<a id="pl.126.31"></a><var>126.31</var>Increments may continue to be expended under this authority after that date, if they are <br />
         		<a id="pl.126.32"></a><var>126.32</var>used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph <br />
         		<a id="pl.126.33"></a><var>126.33</var>(a), if December 31, 2016, is considered to be the last date of the five-year period after <br />
         		<a id="pl.126.34"></a><var>126.34</var>certification under that provision.<br />
         		<a id="pl.126.35"></a><var>126.35</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.7.3.0"></a><a id="pl.127.1"></a><var>127.1</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 469.1763, subdivision 3, is amended to read:<br />
         		<a id="pl.127.2"></a><var>127.2</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Five-year rule.</b> (a) Revenues derived from tax increments paid by <br />
         		<a id="pl.127.3"></a><var>127.3</var>properties in the district are considered to have been expended on an activity within the <br />
         		<a id="pl.127.4"></a><var>127.4</var>district under subdivision 2 only if one of the following occurs:<br />
         		<a id="pl.127.5"></a><var>127.5</var>(1) before or within five years after certification of the district, the revenues are <br />
         		<a id="pl.127.6"></a><var>127.6</var>actually paid to a third party with respect to the activity;<br />
         		<a id="pl.127.7"></a><var>127.7</var>(2) bonds, the proceeds of which must be used to finance the activity, are issued and <br />
         		<a id="pl.127.8"></a><var>127.8</var>sold to a third party before or within five years after certification, the revenues are spent <br />
         		<a id="pl.127.9"></a><var>127.9</var>to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, <br />
         		<a id="pl.127.10"></a><var>127.10</var>reasonably expected to be spent before the end of the later of (i) the five-year period, or <br />
         		<a id="pl.127.11"></a><var>127.11</var>(ii) a reasonable temporary period within the meaning of the use of that term under section <br />
         		<a id="pl.127.12"></a><var>127.12</var>148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve <br />
         		<a id="pl.127.13"></a><var>127.13</var>or replacement fund;<br />
         		<a id="pl.127.14"></a><var>127.14</var>(3) binding contracts with a third party are entered into for performance of the <br />
         		<a id="pl.127.15"></a><var>127.15</var>activity before or within five years after certification of the district and the revenues are <br />
         		<a id="pl.127.16"></a><var>127.16</var>spent under the contractual obligation;<br />
         		<a id="pl.127.17"></a><var>127.17</var>(4) costs with respect to the activity are paid before or within five years after <br />
         		<a id="pl.127.18"></a><var>127.18</var>certification of the district and the revenues are spent to reimburse a party for payment <br />
         		<a id="pl.127.19"></a><var>127.19</var>of the costs, including interest on unreimbursed costs; or<br />
         		<a id="pl.127.20"></a><var>127.20</var>(5) expenditures are made for housing purposes as permitted by subdivision 2, <br />
         		<a id="pl.127.21"></a><var>127.21</var>paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted <br />
         		<a id="pl.127.22"></a><var>127.22</var>by subdivision 2, paragraph (e).<br />
         		<a id="pl.127.23"></a><var>127.23</var>(b) For purposes of this subdivision, bonds include subsequent refunding bonds if <br />
         		<a id="pl.127.24"></a><var>127.24</var>the original refunded bonds meet the requirements of paragraph (a), clause (2).<br />
         		<a id="pl.127.25"></a><var>127.25</var>(c) For a redevelopment district or a renewal and renovation district certified after <br />
         		<a id="pl.127.26"></a><var>127.26</var>June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) <br />
         		<a id="pl.127.27"></a><var>127.27</var>are extended to ten years after certification of the district. For a redevelopment district <br />
         		<a id="pl.127.28"></a><var>127.28</var>certified after April 20, 2009, and before June 30, 2012, the five-year periods described in <br />
         		<a id="pl.127.29"></a><var>127.29</var>paragraph (a) are extended to eight years after certification of the district. This extension is <br />
         		<a id="pl.127.30"></a><var>127.30</var>provided primarily to accommodate delays in development activities due to unanticipated <br />
         		<a id="pl.127.31"></a><var>127.31</var>economic circumstances.<br />
         		<a id="pl.127.32"></a><var>127.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.7.4.0"></a><a id="pl.127.33"></a><var>127.33</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 469.178, subdivision 7, is amended to read:<br />
         		<a id="pl.128.1"></a><var>128.1</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Interfund loans.</b> (a) The authority or municipality may advance or loan <br />
         		<a id="pl.128.2"></a><var>128.2</var>money to finance expenditures under section 
         <statute_ref>469.176, subdivision 4</statute_ref>, from its general fund <br />
         		<a id="pl.128.3"></a><var>128.3</var>or any other fund under which it has legal authority to do so.<br />
         		<a id="pl.128.4"></a><var>128.4</var>&#160;&#160;&#160;&#160;(b) Not later than 60 days after money is transferred, advanced, or spent, whichever <br />
         		<a id="pl.128.5"></a><var>128.5</var>is earliest, the loan or advance must be authorized, by resolution of the governing body or <br />
         		<a id="pl.128.6"></a><var>128.6</var>of the authority, whichever has jurisdiction over the fund from which the advance or loan <br />
         		<a id="pl.128.7"></a><var>128.7</var>is authorized, before money is transferred, advanced, or spent, whichever is earliest.<br />
         		<a id="pl.128.8"></a><var>128.8</var>&#160;&#160;&#160;&#160;(c) The resolution may generally grant to the municipality or the authority the power <br />
         		<a id="pl.128.9"></a><var>128.9</var>to make interfund loans under one or more tax increment financing plans or for one or <br />
         		<a id="pl.128.10"></a><var>128.10</var>more districts. The resolution may be adopted before or after the adoption of the tax <br />
         		<a id="pl.128.11"></a><var>128.11</var>increment financing plan or the creation of the tax increment financing district from which <br />
         		<a id="pl.128.12"></a><var>128.12</var>the advance or loan is to be repaid.<br />
         		<a id="pl.128.13"></a><var>128.13</var>&#160;&#160;&#160;&#160;(d)  The terms and conditions for repayment of the loan must be provided in <br />
         		<a id="pl.128.14"></a><var>128.14</var>writing and. The written terms and conditions may be in any form, but must include, at <br />
         		<a id="pl.128.15"></a><var>128.15</var>a minimum, the principal amount, the interest rate, and maximum term. Written terms <br />
         		<a id="pl.128.16"></a><var>128.16</var>may be modified or amended in writing by the municipality or the authority before the <br />
         		<a id="pl.128.17"></a><var>128.17</var>latest decertification of any tax increment financing district from which the interfund loan <br />
         		<a id="pl.128.18"></a><var>128.18</var>is to be repaid. The maximum rate of interest permitted to be charged is limited to the <br />
         		<a id="pl.128.19"></a><var>128.19</var>greater of the rates specified under section 
         <statute_ref>270C.40</statute_ref> or 
         <statute_ref>549.09 </statute_ref>as of the date the loan or <br />
         		<a id="pl.128.20"></a><var>128.20</var>advance is authorized, unless the written agreement states that the maximum interest rate <br />
         		<a id="pl.128.21"></a><var>128.21</var>will fluctuate as the interest rates specified under section 
         <statute_ref>270C.40</statute_ref> or 
         <statute_ref>549.09 </statute_ref>are from time <br />
         		<a id="pl.128.22"></a><var>128.22</var>to time adjusted. Loans or advances may be structured as draw-down or line-of-credit <br />
         		<a id="pl.128.23"></a><var>128.23</var>obligations of the lending fund.<br />
         		<a id="pl.128.24"></a><var>128.24</var>&#160;&#160;&#160;&#160;(e) The authority shall report in the annual report submitted pursuant to section <br />
         		<a id="pl.128.25"></a><var>128.25</var>469.175, subdivision 6:<br />
         		<a id="pl.128.26"></a><var>128.26</var>&#160;&#160;&#160;&#160;(1) the amount of any interfund loan or advance made in a calendar year; and<br />
         		<a id="pl.128.27"></a><var>128.27</var>&#160;&#160;&#160;&#160;(2) any amendment of an interfund loan or advance made in a calendar year.<br />
         		<a id="pl.128.28"></a><var>128.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.128.29"></a><var>128.29</var>and applies to all districts, regardless of when the request for certification was made.<br />
         		<br />
         		<a id="bill.7.5.0"></a><a id="pl.128.30"></a><var>128.30</var>&#160;&#160;&#160;&#160;Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:<br />
         		<a id="pl.128.31"></a><var>128.31</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Special rules.</b> (a) If the city elects, upon the adoption of the tax increment <br />
         		<a id="pl.128.32"></a><var>128.32</var>financing plan for a district, the rules under this section apply to a redevelopment district, <br />
         		<a id="pl.128.33"></a><var>128.33</var>renewal and renovation district, economic development district, soil condition district, <br />
         		<a id="pl.128.34"></a><var>128.34</var>or a soil deficiency district established by the city or a development authority of the city <br />
         		<a id="pl.128.35"></a><var>128.35</var>in the project area.<br />
         		<a id="pl.129.1"></a><var>129.1</var>&#160;&#160;&#160;&#160;(b) Prior to or upon the adoption of the first tax increment plan subject to the special <br />
         		<a id="pl.129.2"></a><var>129.2</var>rules under this subdivision, the city must find by resolution that parcels consisting of at <br />
         		<a id="pl.129.3"></a><var>129.3</var>least 80 percent of the acreage of the project area (excluding street and railroad right of <br />
         		<a id="pl.129.4"></a><var>129.4</var>way) are characterized by one or more of the following conditions:<br />
         		<a id="pl.129.5"></a><var>129.5</var>&#160;&#160;&#160;&#160;(1) peat or other soils with geotechnical deficiencies that impair development of <br />
         		<a id="pl.129.6"></a><var>129.6</var>residential or commercial buildings or infrastructure;<br />
         		<a id="pl.129.7"></a><var>129.7</var>&#160;&#160;&#160;&#160;(2) soils or terrain that requires substantial filling in order to permit the development <br />
         		<a id="pl.129.8"></a><var>129.8</var>of commercial or residential buildings or infrastructure;<br />
         		<a id="pl.129.9"></a><var>129.9</var>&#160;&#160;&#160;&#160;(3) landfills, dumps, or similar deposits of municipal or private waste;<br />
         		<a id="pl.129.10"></a><var>129.10</var>&#160;&#160;&#160;&#160;(4) quarries or similar resource extraction sites;<br />
         		<a id="pl.129.11"></a><var>129.11</var>&#160;&#160;&#160;&#160;(5) floodway; and<br />
         		<a id="pl.129.12"></a><var>129.12</var>&#160;&#160;&#160;&#160;(6) substandard buildings within the meaning of Minnesota Statutes, section <br />
         		
         <statute_ref><a id="pl.129.13"></a><var>129.13</var>469.174, subdivision 10
         </statute_ref>.<br />
         		<a id="pl.129.14"></a><var>129.14</var>&#160;&#160;&#160;&#160;(c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to <br />
         		<a id="pl.129.15"></a><var>129.15</var>be characterized by the relevant condition if at least 70 percent of the area of the parcel <br />
         		<a id="pl.129.16"></a><var>129.16</var>contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is <br />
         		<a id="pl.129.17"></a><var>129.17</var>deemed to be characterized by substandard buildings if the buildings occupy at least 30 <br />
         		<a id="pl.129.18"></a><var>129.18</var>percent of the area of the parcel.<br />
         		<a id="pl.129.19"></a><var>129.19</var>&#160;&#160;&#160;&#160;(d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, <br />
         		<a id="pl.129.20"></a><var>129.20</var>is extended to nine years for any district. The five-year rule under Minnesota Statutes, <br />
         		<a id="pl.129.21"></a><var>129.21</var>section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, is extended to ten years for any district, and section <br />
         		
         <statute_ref><a id="pl.129.22"></a><var>129.22</var>469.1763, subdivision 4
         </statute_ref>, does not apply to any district.<br />
         		<a id="pl.129.23"></a><var>129.23</var>&#160;&#160;&#160;&#160;(e) Notwithstanding anything to the contrary in section 
         <statute_ref>469.1763, subdivision 2</statute_ref>, <br />
         		<a id="pl.129.24"></a><var>129.24</var>paragraph (a), not more than 80 percent of the total revenue derived from tax increments <br />
         		<a id="pl.129.25"></a><var>129.25</var>paid by properties in any district (measured over the life of the district) may be expended <br />
         		<a id="pl.129.26"></a><var>129.26</var>on activities outside the district but within the project area.<br />
         		<a id="pl.129.27"></a><var>129.27</var>&#160;&#160;&#160;&#160;(f) For a soil deficiency district:<br />
         		<a id="pl.129.28"></a><var>129.28</var>&#160;&#160;&#160;&#160;(1) increments may be collected through 20 years after the receipt by the authority of <br />
         		<a id="pl.129.29"></a><var>129.29</var>the first increment from the district; and<br />
         		<a id="pl.129.30"></a><var>129.30</var>&#160;&#160;&#160;&#160;(2) except as otherwise provided in this subdivision, increments may be used only to:<br />
         		<a id="pl.129.31"></a><var>129.31</var>&#160;&#160;&#160;&#160;(i) acquire parcels on which the improvements described in item (ii) will occur;<br />
         		<a id="pl.129.32"></a><var>129.32</var>&#160;&#160;&#160;&#160;(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the <br />
         		<a id="pl.129.33"></a><var>129.33</var>additional cost of installing public improvements directly caused by the deficiencies; and<br />
         		<a id="pl.129.34"></a><var>129.34</var>&#160;&#160;&#160;&#160;(iii) pay for the administrative expenses of the authority allocable to the district.<br />
         		<a id="pl.130.1"></a><var>130.1</var>&#160;&#160;&#160;&#160;(g) Increments spent for any infrastructure costs, whether inside a district or outside <br />
         		<a id="pl.130.2"></a><var>130.2</var>a district but within the project area, are deemed to satisfy the requirements of paragraph <br />
         		<a id="pl.130.3"></a><var>130.3</var>(f) and Minnesota Statutes, section 
         <statute_ref>469.176, subdivisions 4b, 4c,</statute_ref> and 4j.<br />
         		<a id="pl.130.4"></a><var>130.4</var>&#160;&#160;&#160;&#160;(h) Increments from any district may not be used to pay the costs of landfill closure or <br />
         		<a id="pl.130.5"></a><var>130.5</var>public infrastructure located on the following parcels within the plat known as Burnsville <br />
         		<a id="pl.130.6"></a><var>130.6</var>Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.<br />
         		<a id="pl.130.7"></a><var>130.7</var>&#160;&#160;&#160;&#160;(i) The authority to approve tax increment financing plans to establish tax increment <br />
         		<a id="pl.130.8"></a><var>130.8</var>financing districts under this section expires on December 31, 2018 2020.<br />
         		<a id="pl.130.9"></a><var>130.9</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br />
         		<a id="pl.130.10"></a><var>130.10</var>of the city of Burnsville and compliance with the requirements of Minnesota Statutes, <br />
         		<a id="pl.130.11"></a><var>130.11</var>section 645.021.<br />
         		<br />
         		<a id="bill.7.6.0"></a><a id="pl.130.12"></a><var>130.12</var>&#160;&#160;&#160;&#160;Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter <br />
         		<a id="pl.130.13"></a><var>130.13</var>382, section 84, is amended to read:<br />
         		<a id="pl.130.14"></a><var>130.14</var>&#160;&#160;&#160;&#160;Sec. 17. <b>SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT </b><br />
         		<a id="pl.130.15"></a><var>130.15</var><b>FINANCING DISTRICT; SPECIAL RULES.</b><br />
         		<a id="pl.130.16"></a><var>130.16</var>(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and <br />
         		<a id="pl.130.17"></a><var>130.17</var>the governing body of the city of Duluth approves the plan for the tax increment financing <br />
         		<a id="pl.130.18"></a><var>130.18</var>district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020; <br />
         		<a id="pl.130.19"></a><var>130.19</var>010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; <br />
         		<a id="pl.130.20"></a><var>130.20</var>010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; <br />
         		<a id="pl.130.21"></a><var>130.21</var>010-2730-00160; 010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320; <br />
         		<a id="pl.130.22"></a><var>130.22</var>010-2746-01250; 010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; <br />
         		<a id="pl.130.23"></a><var>130.23</var>010-2746-1380; 010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; <br />
         		<a id="pl.130.24"></a><var>130.24</var>010-2746-01530; 010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; <br />
         		<a id="pl.130.25"></a><var>130.25</var>010-2746-01580; 010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; <br />
         		<a id="pl.130.26"></a><var>130.26</var>010-3300-04580; 010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year <br />
         		<a id="pl.130.27"></a><var>130.27</var>rule under Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, that activities must be <br />
         		<a id="pl.130.28"></a><var>130.28</var>undertaken within a five-year period from the date of certification of the tax increment <br />
         		<a id="pl.130.29"></a><var>130.29</var>financing district, must be considered to be met if the activities are undertaken within five <br />
         		<a id="pl.130.30"></a><var>130.30</var>years after the date all qualifying parcels are delisted from the Federal Superfund list.<br />
         		<a id="pl.130.31"></a><var>130.31</var>(b) The requirements of Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 4</statute_ref>, <br />
         		<a id="pl.130.32"></a><var>130.32</var>beginning in the sixth year following certification of the district requirement, will begin <br />
         		<a id="pl.130.33"></a><var>130.33</var>in the sixth year following the date all qualifying parcels are delisted from the Federal <br />
         		<a id="pl.130.34"></a><var>130.34</var>Superfund list. <br />
         		<a id="pl.131.1"></a><var>131.1</var>(c) The action required under Minnesota Statutes, section 
         <statute_ref>469.176</statute_ref>, subdivision 6, <br />
         		<a id="pl.131.2"></a><var>131.2</var>are satisfied if the action is commenced within four years after the date all qualifying <br />
         		<a id="pl.131.3"></a><var>131.3</var>parcels are delisted from the Federal Superfund list and evidence of the action required is <br />
         		<a id="pl.131.4"></a><var>131.4</var>submitted to the county auditor by February 1 of the fifth year following the year in which <br />
         		<a id="pl.131.5"></a><var>131.5</var>all qualifying parcels are delisted from the Federal Superfund list.<br />
         		<a id="pl.131.6"></a><var>131.6</var>(d) For purposes of this section, "qualifying parcels" means United States Steel <br />
         		<a id="pl.131.7"></a><var>131.7</var>parcels listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part <br />
         		<a id="pl.131.8"></a><var>131.8</var>of the USS Site (USEPA OU 02) that are included in the tax increment financing district.<br />
         		<a id="pl.131.9"></a><var>131.9</var>(e) In addition to the reporting requirements of Minnesota Statutes, section 
         <statute_ref>469.175, <br />
            		<a id="pl.131.10"></a><var>131.10</var>subdivision 5
         </statute_ref>, the Seaway Port Authority of Duluth shall report the status of all parcels <br />
         		<a id="pl.131.11"></a><var>131.11</var>listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status report <br />
         		<a id="pl.131.12"></a><var>131.12</var>must show the parcel numbers, the listed or delisted status, and if delisted, the delisting date.<br />
         		<a id="pl.131.13"></a><var>131.13</var>(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other <br />
         		<a id="pl.131.14"></a><var>131.14</var>law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan <br />
         		<a id="pl.131.15"></a><var>131.15</var>program before approval of the tax increment financing plan for or the establishment of <br />
         		<a id="pl.131.16"></a><var>131.16</var>the district authorized by this section. The authority may make loans under this program <br />
         		<a id="pl.131.17"></a><var>131.17</var>and the proceeds of the loans may be used for any permitted use of increments under <br />
         		<a id="pl.131.18"></a><var>131.18</var>this law or Minnesota Statutes, section 469.176, for the district, and may be repaid with <br />
         		<a id="pl.131.19"></a><var>131.19</var>increments from the district established under this section. This subdivision applies to any <br />
         		<a id="pl.131.20"></a><var>131.20</var>action authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.<br />
         		<a id="pl.131.21"></a><var>131.21</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.131.22"></a><var>131.22</var>the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.131.23"></a><var>131.23</var>645.021, subdivision 3.<br />
         		<br />
         		<a id="bill.7.7.0"></a><a id="pl.131.24"></a><var>131.24</var>&#160;&#160;&#160;&#160;Sec. 7. Laws 2014, chapter 308, article 6, section 9, is amended to read:<br />
         		<a id="pl.131.25"></a><var>131.25</var>&#160;&#160;&#160;&#160;Sec. 9. <b>CITY OF MAPLE GROVE; TAX INCREMENT FINANCING </b><br />
         		<a id="pl.131.26"></a><var>131.26</var><b>DISTRICT.</b><br />
         		<a id="pl.131.27"></a><var>131.27</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br />
         		<a id="pl.131.28"></a><var>131.28</var>have the meanings given them.<br />
         		<a id="pl.131.29"></a><var>131.29</var>(b) "City" means the city of Maple Grove.<br />
         		<a id="pl.131.30"></a><var>131.30</var>(c) "Project area" means all or a portion of the area in the city commencing at a point <br />
         		<a id="pl.131.31"></a><var>131.31</var>130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of <br />
         		<a id="pl.131.32"></a><var>131.32</var>Section 23, Township 119, Range 22, Hennepin County, said point being on the easterly <br />
         		<a id="pl.131.33"></a><var>131.33</var>right-of-way line of Hemlock Lane; thence northerly along said easterly right-of-way line <br />
         		<a id="pl.131.34"></a><var>131.34</var>of Hemlock Lane to a point on the west line of the east one-half of the Southeast Quarter of <br />
         		<a id="pl.131.35"></a><var>131.35</var>section 23, thence south along said west line a distance of 1,200 feet; thence easterly to the <br />
         		<a id="pl.132.1"></a><var>132.1</var>east line of Section 23, 1,030 feet North from the southeast corner thereof; thence South <br />
         		<a id="pl.132.2"></a><var>132.2</var>74 degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees <br />
         		<a id="pl.132.3"></a><var>132.3</var>West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line <br />
         		<a id="pl.132.4"></a><var>132.4</var>of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of <br />
         		<a id="pl.132.5"></a><var>132.5</var>the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795 <br />
         		<a id="pl.132.6"></a><var>132.6</var>feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of <br />
         		<a id="pl.132.7"></a><var>132.7</var>Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the <br />
         		<a id="pl.132.8"></a><var>132.8</var>Northwest Quarter of Section 24; thence West along said south line to the east right-of-way <br />
         		<a id="pl.132.9"></a><var>132.9</var>line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to <br />
         		<a id="pl.132.10"></a><var>132.10</var>the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence <br />
         		<a id="pl.132.11"></a><var>132.11</var>East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan <br />
         		<a id="pl.132.12"></a><var>132.12</var>Industrial Park 5th Addition; thence South along the east line of said Outlot A and its <br />
         		<a id="pl.132.13"></a><var>132.13</var>southerly extension to the south right-of-way line of County State-Aid Highway (CSAH) <br />
         		<a id="pl.132.14"></a><var>132.14</var>109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the <br />
         		<a id="pl.132.15"></a><var>132.15</var>Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east <br />
         		<a id="pl.132.16"></a><var>132.16</var>line to the north line of the South Half of the Northeast Quarter of Section 24; thence East <br />
         		<a id="pl.132.17"></a><var>132.17</var>along said north line to the westerly right-of-way line of Jefferson Highway North; thence <br />
         		<a id="pl.132.18"></a><var>132.18</var>southerly along the westerly right-of-way line of Jefferson Highway to the centerline of <br />
         		<a id="pl.132.19"></a><var>132.19</var>CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane <br />
         		<a id="pl.132.20"></a><var>132.20</var>North to the westerly extension of the north line of Outlot A, Park North Fourth Addition; <br />
         		<a id="pl.132.21"></a><var>132.21</var>thence easterly along the north line of Outlot A, Park North Fourth Addition to the <br />
         		<a id="pl.132.22"></a><var>132.22</var>northeast corner of said Outlot A; thence southerly along the east line of said Outlot A <br />
         		<a id="pl.132.23"></a><var>132.23</var>to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1, <br />
         		<a id="pl.132.24"></a><var>132.24</var>Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway <br />
         		<a id="pl.132.25"></a><var>132.25</var>169; thence southerly, southwesterly, westerly, and northwesterly along the westerly <br />
         		<a id="pl.132.26"></a><var>132.26</var>right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate <br />
         		<a id="pl.132.27"></a><var>132.27</var>694 to its intersection with the southerly extension of the easterly right-of-way line of <br />
         		<a id="pl.132.28"></a><var>132.28</var>Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary <br />
         		<a id="pl.132.29"></a><var>132.29</var>Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence <br />
         		<a id="pl.132.30"></a><var>132.30</var>westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning <br />
         		<a id="pl.132.31"></a><var>132.31</var>and there terminating, provided that the project area includes the rights-of-way for all <br />
         		<a id="pl.132.32"></a><var>132.32</var>present and future highway interchanges abutting the area described in this paragraph, and <br />
         		<a id="pl.132.33"></a><var>132.33</var>may include any additional property necessary to cause the property included in the tax <br />
         		<a id="pl.132.34"></a><var>132.34</var>increment financing district to consist of complete parcels.<br />
         		<a id="pl.133.1"></a><var>133.1</var>(d) "Soil deficiency district" means a type of tax increment financing district <br />
         		<a id="pl.133.2"></a><var>133.2</var>consisting of a portion of the project area in which the city finds by resolution that the <br />
         		<a id="pl.133.3"></a><var>133.3</var>following conditions exist:<br />
         		<a id="pl.133.4"></a><var>133.4</var>(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in <br />
         		<a id="pl.133.5"></a><var>133.5</var>the district require substantial filling, grading, or other physical preparation for use; and<br />
         		<a id="pl.133.6"></a><var>133.6</var>(2) the estimated cost of the physical preparation under clause (1), but excluding <br />
         		<a id="pl.133.7"></a><var>133.7</var>costs directly related to roads as defined in Minnesota Statutes, section 
         <statute_ref>160.01</statute_ref>, and <br />
         		<a id="pl.133.8"></a><var>133.8</var>local improvements as described in Minnesota Statutes, sections 
         <statute_ref>429.021, subdivision 1</statute_ref>, <br />
         		<a id="pl.133.9"></a><var>133.9</var>clauses (1) to (7), (11), and (12), and 
         <statute_ref>430.01</statute_ref>, exceeds the fair market value of the land <br />
         		<a id="pl.133.10"></a><var>133.10</var>before completion of the preparation.<br />
         		<a id="pl.133.11"></a><var>133.11</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Special rules.</b> (a) If the city elects, upon the adoption of the tax increment <br />
         		<a id="pl.133.12"></a><var>133.12</var>financing plan for a district, the rules under this section apply to a redevelopment <br />
         		<a id="pl.133.13"></a><var>133.13</var>district, renewal and renovation district, soil condition district, or soil deficiency district <br />
         		<a id="pl.133.14"></a><var>133.14</var>established by the city or a development authority of the city in the project area.<br />
         		<a id="pl.133.15"></a><var>133.15</var>(b) Prior to or upon the adoption of the first tax increment plan subject to the special <br />
         		<a id="pl.133.16"></a><var>133.16</var>rules under this subdivision, the city must find by resolution that parcels consisting <br />
         		<a id="pl.133.17"></a><var>133.17</var>of at least 80 percent of the acreage of the project area, excluding street and railroad <br />
         		<a id="pl.133.18"></a><var>133.18</var>rights-of-way, are characterized by one or more of the following conditions:<br />
         		<a id="pl.133.19"></a><var>133.19</var>(1) peat or other soils with geotechnical deficiencies that impair development of <br />
         		<a id="pl.133.20"></a><var>133.20</var>commercial buildings or infrastructure;<br />
         		<a id="pl.133.21"></a><var>133.21</var>(2) soils or terrain that require substantial filling in order to permit the development <br />
         		<a id="pl.133.22"></a><var>133.22</var>of commercial buildings or infrastructure;<br />
         		<a id="pl.133.23"></a><var>133.23</var>(3) landfills, dumps, or similar deposits of municipal or private waste;<br />
         		<a id="pl.133.24"></a><var>133.24</var>(4) quarries or similar resource extraction sites;<br />
         		<a id="pl.133.25"></a><var>133.25</var>(5) floodway; and<br />
         		<a id="pl.133.26"></a><var>133.26</var>(6) substandard buildings, within the meaning of Minnesota Statutes, section <br />
         		
         <statute_ref><a id="pl.133.27"></a><var>133.27</var>469.174, subdivision 10
         </statute_ref>.<br />
         		<a id="pl.133.28"></a><var>133.28</var>(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by <br />
         		<a id="pl.133.29"></a><var>133.29</var>the relevant condition if at least 70 percent of the area of the parcel contains the relevant <br />
         		<a id="pl.133.30"></a><var>133.30</var>condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by <br />
         		<a id="pl.133.31"></a><var>133.31</var>substandard buildings if substandard buildings occupy at least 30 percent of the area <br />
         		<a id="pl.133.32"></a><var>133.32</var>of the parcel.<br />
         		<a id="pl.133.33"></a><var>133.33</var>(d) The five-year rule under Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, <br />
         		<a id="pl.133.34"></a><var>133.34</var>is extended to eight years for any district, and Minnesota Statutes, section 
         <statute_ref>469.1763, <br />
            		<a id="pl.133.35"></a><var>133.35</var>subdivision 4
         </statute_ref>, does not apply to any district.<br />
         		<a id="pl.134.1"></a><var>134.1</var>(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section <br />
         		
         <statute_ref><a id="pl.134.2"></a><var>134.2</var>469.1763, subdivision 2
         </statute_ref>, paragraph (a), not more than 40 percent of the total revenue <br />
         		<a id="pl.134.3"></a><var>134.3</var>derived from tax increments paid by properties in any district, measured over the life of <br />
         		<a id="pl.134.4"></a><var>134.4</var>the district, may be expended on activities outside the district but within the project area.<br />
         		<a id="pl.134.5"></a><var>134.5</var>(f) For a soil deficiency district:<br />
         		<a id="pl.134.6"></a><var>134.6</var>(1) increments may be collected through 20 years after the receipt by the authority of <br />
         		<a id="pl.134.7"></a><var>134.7</var>the first increment from the district;<br />
         		<a id="pl.134.8"></a><var>134.8</var>(2) increments may be used only to:<br />
         		<a id="pl.134.9"></a><var>134.9</var>(i) acquire parcels on which the improvements described in item (ii) will occur;<br />
         		<a id="pl.134.10"></a><var>134.10</var>(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the <br />
         		<a id="pl.134.11"></a><var>134.11</var>additional cost of installing public improvements directly caused by the deficiencies; and<br />
         		<a id="pl.134.12"></a><var>134.12</var>(iii) pay for the administrative expenses of the authority allocable to the district; and<br />
         		<a id="pl.134.13"></a><var>134.13</var>(3) any parcel acquired with increments from the district must be sold at no less <br />
         		<a id="pl.134.14"></a><var>134.14</var>than their fair market value.<br />
         		<a id="pl.134.15"></a><var>134.15</var>(g) Increments spent for any infrastructure costs, whether inside a district or outside <br />
         		<a id="pl.134.16"></a><var>134.16</var>a district but within the project area, are deemed to satisfy the requirements of Minnesota <br />
         		<a id="pl.134.17"></a><var>134.17</var>Statutes, section 
         <statute_ref>469.176, subdivision 4j</statute_ref>.<br />
         		<a id="pl.134.18"></a><var>134.18</var>(h) The authority to approve tax increment financing plans to establish tax increment <br />
         		<a id="pl.134.19"></a><var>134.19</var>financing districts under this section expires June 30, 2020.<br />
         		<a id="pl.134.20"></a><var>134.20</var>(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use <br />
         		<a id="pl.134.21"></a><var>134.21</var>increments from a soil deficiency district to acquire parcels and for other infrastructure <br />
         		<a id="pl.134.22"></a><var>134.22</var>costs either inside or outside of the district, but within the project area, if the acquisition or <br />
         		<a id="pl.134.23"></a><var>134.23</var>infrastructure is for a qualified development. For purposes of this paragraph, a development <br />
         		<a id="pl.134.24"></a><var>134.24</var>is a qualified development only if all of the following requirements are satisfied:<br />
         		<a id="pl.134.25"></a><var>134.25</var>(1) the city finds, by resolution, that the land acquisition and infrastructure are <br />
         		<a id="pl.134.26"></a><var>134.26</var>undertaken primarily to serve the development;<br />
         		<a id="pl.134.27"></a><var>134.27</var>(2) the city has a binding, written commitment and adequate financial assurances <br />
         		<a id="pl.134.28"></a><var>134.28</var>from the developer that the development will be constructed; and<br />
         		<a id="pl.134.29"></a><var>134.29</var>(3) the development does not consist of retail trade or housing improvements.<br />
         		<a id="pl.134.30"></a><var>134.30</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing <br />
         		<a id="pl.134.31"></a><var>134.31</var>body of the city of Maple Grove and its compliance with the requirements of Minnesota <br />
         		<a id="pl.134.32"></a><var>134.32</var>Statutes, section 645.021.<br />
         		<br />
         		<a id="bill.7.8.0"></a><a id="pl.134.33"></a><var>134.33</var>&#160;&#160;&#160;&#160;Sec. 8. <b>CITY OF ANOKA; TIF DISTRICT.</b><br />
         		<a id="pl.134.34"></a><var>134.34</var>For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), <br />
         		<a id="pl.134.35"></a><var>134.35</var>the city of Anoka's Greens of Anoka redevelopment tax increment financing district is <br />
         		<a id="pl.135.1"></a><var>135.1</var>deemed to be certified on June 29, 2012, rather than its actual certification date of July 2, <br />
         		<a id="pl.135.2"></a><var>135.2</var>2012, and the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, <br />
         		<a id="pl.135.3"></a><var>135.3</var>apply as if the district were certified on that date.<br />
         		<a id="pl.135.4"></a><var>135.4</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br />
         		<a id="pl.135.5"></a><var>135.5</var>of the city of Anoka and upon compliance by the city with Minnesota Statutes, section <br />
         		<a id="pl.135.6"></a><var>135.6</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.7.9.0"></a><a id="pl.135.7"></a><var>135.7</var>&#160;&#160;&#160;&#160;Sec. 9. <b>CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.</b><br />
         		<a id="pl.135.8"></a><var>135.8</var>Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision <br />
         		<a id="pl.135.9"></a><var>135.9</var>3, the chief clerical officer of the city of Edina may file the city's certificate of its approval <br />
         		<a id="pl.135.10"></a><var>135.10</var>of Laws 2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the certificate <br />
         		<a id="pl.135.11"></a><var>135.11</var>is so filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3, <br />
         		<a id="pl.135.12"></a><var>135.12</var>are otherwise complied with, the special law is deemed approved, and all actions taken <br />
         		<a id="pl.135.13"></a><var>135.13</var>by the city prior to the effective date of this section in reliance on Laws 2014, chapter <br />
         		<a id="pl.135.14"></a><var>135.14</var>308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article <br />
         		<a id="pl.135.15"></a><var>135.15</var>6, section 8, and this act.<br />
         		<a id="pl.135.16"></a><var>135.16</var><b>EFFECTIVE DATE.</b>This section is effective June 30, 2016, without local approval <br />
         		<a id="pl.135.17"></a><var>135.17</var>as an amendment to the provisions of Laws 2014, chapter 308, article 6, section 8.<br />
         		<br />
         		<a id="bill.7.10.0"></a><a id="pl.135.18"></a><var>135.18</var>&#160;&#160;&#160;&#160;Sec. 10. <b>CITY OF COON RAPIDS; TAX INCREMENT FINANCING.</b><br />
         		<a id="pl.135.19"></a><var>135.19</var>Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision <br />
         		<a id="pl.135.20"></a><var>135.20</var>1b, or any other law to the contrary, the city of Coon Rapids may collect tax increment <br />
         		<a id="pl.135.21"></a><var>135.21</var>from District 6-1 Port Riverwalk through December 31, 2038.<br />
         		<a id="pl.135.22"></a><var>135.22</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br />
         		<a id="pl.135.23"></a><var>135.23</var>bodies of the city of Coon Rapids, Anoka County, and Independent School District No. <br />
         		<a id="pl.135.24"></a><var>135.24</var>11 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and <br />
         		<a id="pl.135.25"></a><var>135.25</var>645.021, subdivision 3.<br />
         		<br />
         		<a id="bill.7.11.0"></a><a id="pl.135.26"></a><var>135.26</var>&#160;&#160;&#160;&#160;Sec. 11. <b>CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING.</b><br />
         		<a id="pl.135.27"></a><var>135.27</var>The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that <br />
         		<a id="pl.135.28"></a><var>135.28</var>activities must be undertaken within a five-year period from the date of certification of <br />
         		<a id="pl.135.29"></a><var>135.29</var>a tax increment financing district, is considered to be met for Tax Increment Financing <br />
         		<a id="pl.135.30"></a><var>135.30</var>District No. 1-12 (Gateway North), administered by the Cottage Grove Economic <br />
         		<a id="pl.135.31"></a><var>135.31</var>Development Authority, if the activities are undertaken prior to January 1, 2017.<br />
         		<a id="pl.136.1"></a><var>136.1</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the chief clerical <br />
         		<a id="pl.136.2"></a><var>136.2</var>officer of the governing body of the city of Cottage Grove with the requirements of <br />
         		<a id="pl.136.3"></a><var>136.3</var>Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.7.12.0"></a><a id="pl.136.4"></a><var>136.4</var>&#160;&#160;&#160;&#160;Sec. 12. <b>CITY OF NORTHFIELD; TAX INCREMENT FINANCING.</b><br />
         		<a id="pl.136.5"></a><var>136.5</var>The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that <br />
         		<a id="pl.136.6"></a><var>136.6</var>activities must be undertaken within a five-year period from the date of certification of a <br />
         		<a id="pl.136.7"></a><var>136.7</var>tax increment financing district, is considered to be met for the Riverfront Tax Increment <br />
         		<a id="pl.136.8"></a><var>136.8</var>Financing District in the city of Northfield, if the activities are undertaken prior to July <br />
         		<a id="pl.136.9"></a><var>136.9</var>12, 2017.<br />
         		<a id="pl.136.10"></a><var>136.10</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.136.11"></a><var>136.11</var>the city of Northfield and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.136.12"></a><var>136.12</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.7.13.0"></a><a id="pl.136.13"></a><var>136.13</var>&#160;&#160;&#160;&#160;Sec. 13. <b>CITY OF RICHFIELD; EXTENSION OF DISTRICT.</b><br />
         		<a id="pl.136.14"></a><var>136.14</var>Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other <br />
         		<a id="pl.136.15"></a><var>136.15</var>law to the contrary, the city of Richfield and the Housing and Redevelopment Authority in <br />
         		<a id="pl.136.16"></a><var>136.16</var>and for the city of Richfield may elect to extend the duration limit of the redevelopment <br />
         		<a id="pl.136.17"></a><var>136.17</var>tax increment financing district known as the Cedar Avenue Tax Increment Financing <br />
         		<a id="pl.136.18"></a><var>136.18</var>District established by Laws 2005, chapter 152, article 2, section 25, by ten years.<br />
         		<a id="pl.136.19"></a><var>136.19</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the city <br />
         		<a id="pl.136.20"></a><var>136.20</var>of Richfield, Hennepin County, and Independent School District No. 280 with the <br />
         		<a id="pl.136.21"></a><var>136.21</var>requirements of Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, <br />
         		<a id="pl.136.22"></a><var>136.22</var>subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.7.14.0"></a><a id="pl.136.23"></a><var>136.23</var>&#160;&#160;&#160;&#160;Sec. 14. <b>CITY OF ST. PAUL; TIF AUTHORITY.</b><br />
         		<a id="pl.136.24"></a><var>136.24</var>(a) For purposes of computing the duration limits under Minnesota Statutes, section <br />
         		<a id="pl.136.25"></a><var>136.25</var>469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul <br />
         		<a id="pl.136.26"></a><var>136.26</var>may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing <br />
         		<a id="pl.136.27"></a><var>136.27</var>District. This authority is limited to the first four years of increment or increments derived <br />
         		<a id="pl.136.28"></a><var>136.28</var>from taxes payable in 2023, whichever occurs first.<br />
         		<a id="pl.136.29"></a><var>136.29</var>(b) If the city elects to waive receipt of increment under paragraph (a), for purposes <br />
         		<a id="pl.136.30"></a><var>136.30</var>of applying any limits based on when the district was certified under Minnesota Statutes, <br />
         		<a id="pl.136.31"></a><var>136.31</var>section 469.176, subdivision 6, or 469.1763, the date of certification for the district is <br />
         		<a id="pl.137.1"></a><var>137.1</var>deemed to be January 2 of the property tax assessment year for which increment is first <br />
         		<a id="pl.137.2"></a><var>137.2</var>received under the waiver.<br />
         		<a id="pl.137.3"></a><var>137.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2016, without local approval <br />
         		<a id="pl.137.4"></a><var>137.4</var>under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).<br />
         		<br />
         		<a id="bill.8.0.0"></a><div class="xtend_ce"><a id="pl.137.5"></a><var>137.5</var><b>ARTICLE 8</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.137.6"></a><var>137.6</var><b>PUBLIC FINANCE</b><br />
            		
         </div><br />
         		<a id="bill.8.1.0"></a><a id="pl.137.7"></a><var>137.7</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2014, section 366.095, subdivision 1, is amended to read:<br />
         		<a id="pl.137.8"></a><var>137.8</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Certificates of indebtedness.</b> The town board may issue certificates <br />
         		<a id="pl.137.9"></a><var>137.9</var>of indebtedness within the debt limits for a town purpose otherwise authorized by law. <br />
         		<a id="pl.137.10"></a><var>137.10</var>The certificates shall be payable in not more than ten years and be issued on the terms and <br />
         		<a id="pl.137.11"></a><var>137.11</var>in the manner as the board may determine, provided that notes issued for projects that <br />
         		<a id="pl.137.12"></a><var>137.12</var>eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), <br />
         		<a id="pl.137.13"></a><var>137.13</var>shall be payable in not more than 20 years. If the amount of the certificates to be issued <br />
         		<a id="pl.137.14"></a><var>137.14</var>exceeds 0.25 percent of the estimated market value of the town, they shall not be issued <br />
         		<a id="pl.137.15"></a><var>137.15</var>for at least ten days after publication in a newspaper of general circulation in the town of <br />
         		<a id="pl.137.16"></a><var>137.16</var>the board's resolution determining to issue them. If within that time, a petition asking for <br />
         		<a id="pl.137.17"></a><var>137.17</var>an election on the proposition signed by voters equal to ten percent of the number of voters <br />
         		<a id="pl.137.18"></a><var>137.18</var>at the last regular town election is filed with the clerk, the certificates shall not be issued <br />
         		<a id="pl.137.19"></a><var>137.19</var>until their issuance has been approved by a majority of the votes cast on the question at <br />
         		<a id="pl.137.20"></a><var>137.20</var>a regular or special election. A tax levy shall be made to pay the principal and interest <br />
         		<a id="pl.137.21"></a><var>137.21</var>on the certificates as in the case of bonds.<br />
         		<br />
         		<a id="bill.8.2.0"></a><a id="pl.137.22"></a><var>137.22</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 383B.117, subdivision 2, is amended to read:<br />
         		<a id="pl.137.23"></a><var>137.23</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Equipment acquisition; capital notes.</b> The board may, by resolution and <br />
         		<a id="pl.137.24"></a><var>137.24</var>without public referendum, issue capital notes within existing debt limits for the purpose <br />
         		<a id="pl.137.25"></a><var>137.25</var>of purchasing ambulance and other medical equipment, road construction or maintenance <br />
         		<a id="pl.137.26"></a><var>137.26</var>equipment, public safety equipment and other capital equipment having an expected <br />
         		<a id="pl.137.27"></a><var>137.27</var>useful life at least equal to the term of the notes issued. The notes shall be payable <br />
         		<a id="pl.137.28"></a><var>137.28</var>in not more than ten years and shall be issued on terms and in a manner as the board <br />
         		<a id="pl.137.29"></a><var>137.29</var>determines, provided that notes issued for projects that eliminate R-22, as such projects <br />
         		<a id="pl.137.30"></a><var>137.30</var>are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not more <br />
         		<a id="pl.137.31"></a><var>137.31</var>than 20 years. The total principal amount of the notes issued for any fiscal year shall not <br />
         		<a id="pl.137.32"></a><var>137.32</var>exceed one percent of the total annual budget for that year and shall be issued solely for <br />
         		<a id="pl.137.33"></a><var>137.33</var>the purchases authorized in this subdivision. A tax levy shall be made for the payment <br />
         		<a id="pl.137.34"></a><var>137.34</var>of the principal and interest on such notes as in the case of bonds. For purposes of this <br />
         		<a id="pl.138.1"></a><var>138.1</var>subdivision, "equipment" includes computer hardware and software, whether bundled with <br />
         		<a id="pl.138.2"></a><var>138.2</var>machinery or equipment or unbundled. For purposes of this subdivision, the term "medical <br />
         		<a id="pl.138.3"></a><var>138.3</var>equipment" includes computer hardware and software and other intellectual property for <br />
         		<a id="pl.138.4"></a><var>138.4</var>use in medical diagnosis, medical procedures, research, record keeping, billing, and other <br />
         		<a id="pl.138.5"></a><var>138.5</var>hospital applications, together with application development services and training related <br />
         		<a id="pl.138.6"></a><var>138.6</var>to the use of the computer hardware and software and other intellectual property, all <br />
         		<a id="pl.138.7"></a><var>138.7</var>without regard to their useful life. For purposes of determining the amount of capital notes <br />
         		<a id="pl.138.8"></a><var>138.8</var>which the county may issue in any year, the budget of the county and Hennepin Healthcare <br />
         		<a id="pl.138.9"></a><var>138.9</var>System, Inc. shall be combined and the notes issuable under this subdivision shall be in <br />
         		<a id="pl.138.10"></a><var>138.10</var>addition to obligations issuable under section 
         <statute_ref>373.01, subdivision 3</statute_ref>.<br />
         		<br />
         		<a id="bill.8.3.0"></a><a id="pl.138.11"></a><var>138.11</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 410.32, is amended to read:<br />
         		<a id="pl.138.12"></a><var>138.12</var><b>410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.</b><br />
         		<a id="pl.138.13"></a><var>138.13</var>&#160;&#160;&#160;&#160;(a) Notwithstanding any contrary provision of other law or charter, a home rule <br />
         		<a id="pl.138.14"></a><var>138.14</var>charter city may, by resolution and without public referendum, issue capital notes subject <br />
         		<a id="pl.138.15"></a><var>138.15</var>to the city debt limit to purchase capital equipment.<br />
         		<a id="pl.138.16"></a><var>138.16</var>&#160;&#160;&#160;&#160;(b) For purposes of this section, "capital equipment" means:<br />
         		<a id="pl.138.17"></a><var>138.17</var>&#160;&#160;&#160;&#160;(1) public safety equipment, ambulance and other medical equipment, road <br />
         		<a id="pl.138.18"></a><var>138.18</var>construction and maintenance equipment, and other capital equipment; and<br />
         		<a id="pl.138.19"></a><var>138.19</var>&#160;&#160;&#160;&#160;(2) computer hardware and software, whether bundled with machinery or equipment <br />
         		<a id="pl.138.20"></a><var>138.20</var>or unbundled, together with application development services and training related to the <br />
         		<a id="pl.138.21"></a><var>138.21</var>use of the computer hardware and software.<br />
         		<a id="pl.138.22"></a><var>138.22</var>&#160;&#160;&#160;&#160;(c) The equipment or software must have an expected useful life at least as long <br />
         		<a id="pl.138.23"></a><var>138.23</var>as the term of the notes.<br />
         		<a id="pl.138.24"></a><var>138.24</var>&#160;&#160;&#160;&#160;(d) The notes shall be payable in not more than ten years and be issued on terms and <br />
         		<a id="pl.138.25"></a><var>138.25</var>in the manner the city determines, provided that notes issued for projects that eliminate <br />
         		<a id="pl.138.26"></a><var>138.26</var>R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be <br />
         		<a id="pl.138.27"></a><var>138.27</var>payable in not more than 20 years. The total principal amount of the capital notes issued <br />
         		<a id="pl.138.28"></a><var>138.28</var>in a fiscal year shall not exceed 0.03 percent of the estimated market value of taxable <br />
         		<a id="pl.138.29"></a><var>138.29</var>property in the city for that year.<br />
         		<a id="pl.138.30"></a><var>138.30</var>&#160;&#160;&#160;&#160;(e) A tax levy shall be made for the payment of the principal and interest on the <br />
         		<a id="pl.138.31"></a><var>138.31</var>notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br />
         		<a id="pl.138.32"></a><var>138.32</var>&#160;&#160;&#160;&#160;(f) Notes issued under this section shall require an affirmative vote of two-thirds of <br />
         		<a id="pl.138.33"></a><var>138.33</var>the governing body of the city.<br />
         		<a id="pl.139.1"></a><var>139.1</var>&#160;&#160;&#160;&#160;(g) Notwithstanding a contrary provision of other law or charter, a home rule charter <br />
         		<a id="pl.139.2"></a><var>139.2</var>city may also issue capital notes subject to its debt limit in the manner and subject to the <br />
         		<a id="pl.139.3"></a><var>139.3</var>limitations applicable to statutory cities pursuant to section 
         <statute_ref>412.301</statute_ref>.<br />
         		<br />
         		<a id="bill.8.4.0"></a><a id="pl.139.4"></a><var>139.4</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 412.301, is amended to read:<br />
         		<a id="pl.139.5"></a><var>139.5</var><b>412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.</b><br />
         		<a id="pl.139.6"></a><var>139.6</var>&#160;&#160;&#160;&#160;(a) The council may issue certificates of indebtedness or capital notes subject to the <br />
         		<a id="pl.139.7"></a><var>139.7</var>city debt limits to purchase capital equipment.<br />
         		<a id="pl.139.8"></a><var>139.8</var>&#160;&#160;&#160;&#160;(b) For purposes of this section, "capital equipment" means:<br />
         		<a id="pl.139.9"></a><var>139.9</var>&#160;&#160;&#160;&#160;(1) public safety equipment, ambulance and other medical equipment, road <br />
         		<a id="pl.139.10"></a><var>139.10</var>construction and maintenance equipment, and other capital equipment; and<br />
         		<a id="pl.139.11"></a><var>139.11</var>&#160;&#160;&#160;&#160;(2) computer hardware and software, whether bundled with machinery or equipment <br />
         		<a id="pl.139.12"></a><var>139.12</var>or unbundled, together with application development services and training related to the <br />
         		<a id="pl.139.13"></a><var>139.13</var>use of the computer hardware or software.<br />
         		<a id="pl.139.14"></a><var>139.14</var>&#160;&#160;&#160;&#160;(c) The equipment or software must have an expected useful life at least as long as <br />
         		<a id="pl.139.15"></a><var>139.15</var>the terms of the certificates or notes.<br />
         		<a id="pl.139.16"></a><var>139.16</var>&#160;&#160;&#160;&#160;(d) Such certificates or notes shall be payable in not more than ten years and shall <br />
         		<a id="pl.139.17"></a><var>139.17</var>be issued on such terms and in such manner as the council may determine, provided, <br />
         		<a id="pl.139.18"></a><var>139.18</var>however, that notes issued for projects that eliminate R-22, as such projects are defined in <br />
         		<a id="pl.139.19"></a><var>139.19</var>section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years.<br />
         		<a id="pl.139.20"></a><var>139.20</var>&#160;&#160;&#160;&#160;(e) If the amount of the certificates or notes to be issued to finance any such purchase <br />
         		<a id="pl.139.21"></a><var>139.21</var>exceeds 0.25 percent of the estimated market value of taxable property in the city, they <br />
         		<a id="pl.139.22"></a><var>139.22</var>shall not be issued for at least ten days after publication in the official newspaper of <br />
         		<a id="pl.139.23"></a><var>139.23</var>a council resolution determining to issue them; and if before the end of that time, a <br />
         		<a id="pl.139.24"></a><var>139.24</var>petition asking for an election on the proposition signed by voters equal to ten percent <br />
         		<a id="pl.139.25"></a><var>139.25</var>of the number of voters at the last regular municipal election is filed with the clerk, such <br />
         		<a id="pl.139.26"></a><var>139.26</var>certificates or notes shall not be issued until the proposition of their issuance has been <br />
         		<a id="pl.139.27"></a><var>139.27</var>approved by a majority of the votes cast on the question at a regular or special election.<br />
         		<a id="pl.139.28"></a><var>139.28</var>&#160;&#160;&#160;&#160;(f) A tax levy shall be made for the payment of the principal and interest on such <br />
         		<a id="pl.139.29"></a><var>139.29</var>certificates or notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br />
         		<br />
         		<a id="bill.8.5.0"></a><a id="pl.139.30"></a><var>139.30</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 469.034, subdivision 2, is amended to read:<br />
         		<a id="pl.139.31"></a><var>139.31</var>&#160;&#160;&#160;&#160;Subd. 2. <b>General obligation revenue bonds.</b> (a) An authority may pledge the <br />
         		<a id="pl.139.32"></a><var>139.32</var>general obligation of the general jurisdiction governmental unit as additional security for <br />
         		<a id="pl.139.33"></a><var>139.33</var>bonds payable from income or revenues of the project or the authority. The authority <br />
         		<a id="pl.139.34"></a><var>139.34</var>must find that the pledged revenues will equal or exceed 110 percent of the principal and <br />
         		<a id="pl.140.1"></a><var>140.1</var>interest due on the bonds for each year. The proceeds of the bonds must be used for a <br />
         		<a id="pl.140.2"></a><var>140.2</var>qualified housing development project or projects. The obligations must be issued and <br />
         		<a id="pl.140.3"></a><var>140.3</var>sold in the manner and following the procedures provided by chapter 475, except the <br />
         		<a id="pl.140.4"></a><var>140.4</var>obligations are not subject to approval by the electors, and the maturities may extend to <br />
         		<a id="pl.140.5"></a><var>140.5</var>not more than 35 years for obligations sold to finance housing for the elderly and 40 years <br />
         		<a id="pl.140.6"></a><var>140.6</var>for other obligations issued under this subdivision. The authority is the municipality for <br />
         		<a id="pl.140.7"></a><var>140.7</var>purposes of chapter 475.<br />
         		<a id="pl.140.8"></a><var>140.8</var>&#160;&#160;&#160;&#160;(b) The principal amount of the issue must be approved by the governing body of <br />
         		<a id="pl.140.9"></a><var>140.9</var>the general jurisdiction governmental unit whose general obligation is pledged. Public <br />
         		<a id="pl.140.10"></a><var>140.10</var>hearings must be held on issuance of the obligations by both the authority and the general <br />
         		<a id="pl.140.11"></a><var>140.11</var>jurisdiction governmental unit. The hearings must be held at least 15 days, but not more <br />
         		<a id="pl.140.12"></a><var>140.12</var>than 120 days, before the sale of the obligations.<br />
         		<a id="pl.140.13"></a><var>140.13</var>&#160;&#160;&#160;&#160;(c) The maximum amount of general obligation bonds that may be issued and <br />
         		<a id="pl.140.14"></a><var>140.14</var>outstanding under this section equals the greater of (1) one-half of one percent of the <br />
         		<a id="pl.140.15"></a><var>140.15</var>estimated market value of the general jurisdiction governmental unit whose general <br />
         		<a id="pl.140.16"></a><var>140.16</var>obligation is pledged, or (2) $3,000,000 $5,000,000. In the case of county or multicounty <br />
         		<a id="pl.140.17"></a><var>140.17</var>general obligation bonds, the outstanding general obligation bonds of all cities in the <br />
         		<a id="pl.140.18"></a><var>140.18</var>county or counties issued under this subdivision must be added in calculating the limit <br />
         		<a id="pl.140.19"></a><var>140.19</var>under clause (1).<br />
         		<a id="pl.140.20"></a><var>140.20</var>&#160;&#160;&#160;&#160;(d) "General jurisdiction governmental unit" means the city in which the housing <br />
         		<a id="pl.140.21"></a><var>140.21</var>development project is located. In the case of a county or multicounty authority, the <br />
         		<a id="pl.140.22"></a><var>140.22</var>county or counties may act as the general jurisdiction governmental unit. In the case of <br />
         		<a id="pl.140.23"></a><var>140.23</var>a multicounty authority, the pledge of the general obligation is a pledge of a tax on the <br />
         		<a id="pl.140.24"></a><var>140.24</var>taxable property in each of the counties.<br />
         		<a id="pl.140.25"></a><var>140.25</var>&#160;&#160;&#160;&#160;(e) "Qualified housing development project" means a housing development project <br />
         		<a id="pl.140.26"></a><var>140.26</var>providing housing either for the elderly or for individuals and families with incomes not <br />
         		<a id="pl.140.27"></a><var>140.27</var>greater than 80 percent of the median family income as estimated by the United States <br />
         		<a id="pl.140.28"></a><var>140.28</var>Department of Housing and Urban Development for the standard metropolitan statistical <br />
         		<a id="pl.140.29"></a><var>140.29</var>area or the nonmetropolitan county in which the project is located. The project must be <br />
         		<a id="pl.140.30"></a><var>140.30</var>owned for the term of the bonds either by the authority or by a limited partnership or other <br />
         		<a id="pl.140.31"></a><var>140.31</var>entity in which the authority or another entity under the sole control of the authority is <br />
         		<a id="pl.140.32"></a><var>140.32</var>the sole general partner and the partnership or other entity must receive (1) an allocation <br />
         		<a id="pl.140.33"></a><var>140.33</var>from the Department of Management and Budget or an entitlement issuer of tax-exempt <br />
         		<a id="pl.140.34"></a><var>140.34</var>bonding authority for the project and a preliminary determination by the Minnesota <br />
         		<a id="pl.140.35"></a><var>140.35</var>Housing Finance Agency or the applicable suballocator of tax credits that the project <br />
         		<a id="pl.140.36"></a><var>140.36</var>will qualify for four percent low-income housing tax credits or (2) a reservation of nine <br />
         		<a id="pl.141.1"></a><var>141.1</var>percent low-income housing tax credits from the Minnesota Housing Finance Agency or a <br />
         		<a id="pl.141.2"></a><var>141.2</var>suballocator of tax credits for the project. A qualified housing development project may <br />
         		<a id="pl.141.3"></a><var>141.3</var>admit nonelderly individuals and families with higher incomes if:<br />
         		<a id="pl.141.4"></a><var>141.4</var>&#160;&#160;&#160;&#160;(1) three years have passed since initial occupancy;<br />
         		<a id="pl.141.5"></a><var>141.5</var>&#160;&#160;&#160;&#160;(2) the authority finds the project is experiencing unanticipated vacancies resulting in <br />
         		<a id="pl.141.6"></a><var>141.6</var>insufficient revenues, because of changes in population or other unforeseen circumstances <br />
         		<a id="pl.141.7"></a><var>141.7</var>that occurred after the initial finding of adequate revenues; and<br />
         		<a id="pl.141.8"></a><var>141.8</var>&#160;&#160;&#160;&#160;(3) the authority finds a tax levy or payment from general assets of the general <br />
         		<a id="pl.141.9"></a><var>141.9</var>jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher <br />
         		<a id="pl.141.10"></a><var>141.10</var>income individuals or families are not admitted.<br />
         		<a id="pl.141.11"></a><var>141.11</var>&#160;&#160;&#160;&#160;(f) The authority may issue bonds to refund bonds issued under this subdivision in <br />
         		<a id="pl.141.12"></a><var>141.12</var>accordance with section 
         <statute_ref>475.67</statute_ref>. The finding of the adequacy of pledged revenues required <br />
         		<a id="pl.141.13"></a><var>141.13</var>by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the <br />
         		<a id="pl.141.14"></a><var>141.14</var>issuance of refunding bonds. This paragraph applies to refunding bonds issued on and <br />
         		<a id="pl.141.15"></a><var>141.15</var>after July 1, 1992.<br />
         		<br />
         		<a id="bill.8.6.0"></a><a id="pl.141.16"></a><var>141.16</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 469.101, subdivision 1, is amended to read:<br />
         		<a id="pl.141.17"></a><var>141.17</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Establishment.</b> An economic development authority may create <br />
         		<a id="pl.141.18"></a><var>141.18</var>and define the boundaries of economic development districts at any place or places within <br />
         		<a id="pl.141.19"></a><var>141.19</var>the city, except that the district boundaries must be contiguous, and may use the powers <br />
         		<a id="pl.141.20"></a><var>141.20</var>granted in sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.108</statute_ref> to carry out its purposes. First the authority must <br />
         		<a id="pl.141.21"></a><var>141.21</var>hold a public hearing on the matter. At least ten days before the hearing, the authority <br />
         		<a id="pl.141.22"></a><var>141.22</var>shall publish notice of the hearing in a daily newspaper of general circulation in the city. <br />
         		<a id="pl.141.23"></a><var>141.23</var>Also, the authority shall find that an economic development district is proper and desirable <br />
         		<a id="pl.141.24"></a><var>141.24</var>to establish and develop within the city.<br />
         		<br />
         		<a id="bill.8.7.0"></a><a id="pl.141.25"></a><var>141.25</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 473.39, is amended by adding a subdivision <br />
         		<a id="pl.141.26"></a><var>141.26</var>to read:<br />
         		<a id="pl.141.27"></a><var>141.27</var>&#160;&#160;&#160;&#160;Subd. 1u. <b>Obligations.</b> (a) In addition to other authority in this section, the council <br />
         		<a id="pl.141.28"></a><var>141.28</var>may issue certificates of indebtedness, bonds, or other obligations under this section in an <br />
         		<a id="pl.141.29"></a><var>141.29</var>amount not exceeding $82,100,000 for capital expenditures as prescribed in the council's <br />
         		<a id="pl.141.30"></a><var>141.30</var>transit capital improvement program and for related costs, including the costs of issuance <br />
         		<a id="pl.141.31"></a><var>141.31</var>and sale of the obligations. Of this authorization, after July 1, 2016, the council may <br />
         		<a id="pl.141.32"></a><var>141.32</var>issue certificates of indebtedness, bonds, or other obligations in an amount not exceeding <br />
         		<a id="pl.141.33"></a><var>141.33</var>$40,100,000, and after July 1, 2017, the council may issue certificates of indebtedness, <br />
         		<a id="pl.141.34"></a><var>141.34</var>bonds, or other obligations in an additional amount not exceeding $42,000,000.<br />
         		<a id="pl.142.1"></a><var>142.1</var>(b) This section applies in the counties of Anoka, Carver, Dakota, Hennepin, <br />
         		<a id="pl.142.2"></a><var>142.2</var>Ramsey, Scott, and Washington.<br />
         		<a id="pl.142.3"></a><var>142.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.8.0"></a><a id="pl.142.4"></a><var>142.4</var>&#160;&#160;&#160;&#160;Sec. 8. Minnesota Statutes 2014, section 475.58, subdivision 3b, is amended to read:<br />
         		<a id="pl.142.5"></a><var>142.5</var>&#160;&#160;&#160;&#160;Subd. 3b. <b>Street reconstruction and bituminous overlays.</b> (a) A municipality may, <br />
         		<a id="pl.142.6"></a><var>142.6</var>without regard to the election requirement under subdivision 1, issue and sell obligations <br />
         		<a id="pl.142.7"></a><var>142.7</var>for street reconstruction or bituminous overlays, if the following conditions are met:<br />
         		<a id="pl.142.8"></a><var>142.8</var>&#160;&#160;&#160;&#160;(1) the streets are reconstructed or overlaid under a street reconstruction or overlay <br />
         		<a id="pl.142.9"></a><var>142.9</var>plan that describes the street reconstruction or overlay to be financed, the estimated costs, <br />
         		<a id="pl.142.10"></a><var>142.10</var>and any planned reconstruction or overlay of other streets in the municipality over the next <br />
         		<a id="pl.142.11"></a><var>142.11</var>five years, and the plan and issuance of the obligations has been approved by a vote of <br />
         		<a id="pl.142.12"></a><var>142.12</var>all a majority of the members of the governing body present at the meeting following a <br />
         		<a id="pl.142.13"></a><var>142.13</var>public hearing for which notice has been published in the official newspaper at least ten <br />
         		<a id="pl.142.14"></a><var>142.14</var>days but not more than 28 days prior to the hearing; and<br />
         		<a id="pl.142.15"></a><var>142.15</var>&#160;&#160;&#160;&#160;(2) if a petition requesting a vote on the issuance is signed by voters equal to <br />
         		<a id="pl.142.16"></a><var>142.16</var>five percent of the votes cast in the last municipal general election and is filed with the <br />
         		<a id="pl.142.17"></a><var>142.17</var>municipal clerk within 30 days of the public hearing, the municipality may issue the bonds <br />
         		<a id="pl.142.18"></a><var>142.18</var>only after obtaining the approval of a majority of the voters voting on the question of the <br />
         		<a id="pl.142.19"></a><var>142.19</var>issuance of the obligations. If the municipality elects not to submit the question to the <br />
         		<a id="pl.142.20"></a><var>142.20</var>voters, the municipality shall not propose the issuance of bonds under this section for the <br />
         		<a id="pl.142.21"></a><var>142.21</var>same purpose and in the same amount for a period of 365 days from the date of receipt <br />
         		<a id="pl.142.22"></a><var>142.22</var>of the petition. If the question of issuing the bonds is submitted and not approved by the <br />
         		<a id="pl.142.23"></a><var>142.23</var>voters, the provisions of section 
         <statute_ref>475.58, subdivision 1a</statute_ref>, shall apply.<br />
         		<a id="pl.142.24"></a><var>142.24</var>&#160;&#160;&#160;&#160;(b) Obligations issued under this subdivision are subject to the debt limit of the <br />
         		<a id="pl.142.25"></a><var>142.25</var>municipality and are not excluded from net debt under section 
         <statute_ref>475.51, subdivision 4</statute_ref>.<br />
         		<a id="pl.142.26"></a><var>142.26</var>&#160;&#160;&#160;&#160;(c) For purposes of this subdivision, street reconstruction and bituminous overlays <br />
         		<a id="pl.142.27"></a><var>142.27</var>includes utility replacement and relocation and other activities incidental to the street <br />
         		<a id="pl.142.28"></a><var>142.28</var>reconstruction, turn lanes and other improvements having a substantial public safety <br />
         		<a id="pl.142.29"></a><var>142.29</var>function, realignments, other modifications to intersect with state and county roads, and <br />
         		<a id="pl.142.30"></a><var>142.30</var>the local share of state and county road projects. For purposes of this subdivision, "street <br />
         		<a id="pl.142.31"></a><var>142.31</var>reconstruction" includes expenditures for street reconstruction that have been incurred <br />
         		<a id="pl.142.32"></a><var>142.32</var>by a municipality before approval of a street reconstruction plan, if such expenditures <br />
         		<a id="pl.142.33"></a><var>142.33</var>are included in a street reconstruction plan approved on or before the date of the public <br />
         		<a id="pl.142.34"></a><var>142.34</var>hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.<br />
         		<a id="pl.143.1"></a><var>143.1</var>&#160;&#160;&#160;&#160;(d) Except in the case of turn lanes, safety improvements, realignments, intersection <br />
         		<a id="pl.143.2"></a><var>143.2</var>modifications, and the local share of state and county road projects, street reconstruction <br />
         		<a id="pl.143.3"></a><var>143.3</var>and bituminous overlays does not include the portion of project cost allocable to widening <br />
         		<a id="pl.143.4"></a><var>143.4</var>a street or adding curbs and gutters where none previously existed.<br />
         		<br />
         		<a id="bill.8.9.0"></a><a id="pl.143.5"></a><var>143.5</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2014, section 475.60, subdivision 2, is amended to read:<br />
         		<a id="pl.143.6"></a><var>143.6</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Requirements waived.</b> The requirements as to public sale shall not <br />
         		<a id="pl.143.7"></a><var>143.7</var>apply to:<br />
         		<a id="pl.143.8"></a><var>143.8</var>(1) obligations issued under the provisions of a home rule charter or of a law <br />
         		<a id="pl.143.9"></a><var>143.9</var>specifically authorizing a different method of sale, or authorizing them to be issued in such <br />
         		<a id="pl.143.10"></a><var>143.10</var>manner or on such terms and conditions as the governing body may determine;<br />
         		<a id="pl.143.11"></a><var>143.11</var>(2) obligations sold by an issuer in an amount not exceeding the total sum of <br />
         		<a id="pl.143.12"></a><var>143.12</var>$1,200,000 in any 12-month period;<br />
         		<a id="pl.143.13"></a><var>143.13</var>(3) obligations issued by a governing body other than a school board in anticipation <br />
         		<a id="pl.143.14"></a><var>143.14</var>of the collection of taxes or other revenues appropriated for expenditure in a single year, if <br />
         		<a id="pl.143.15"></a><var>143.15</var>sold in accordance with the most favorable of two or more proposals solicited privately;<br />
         		<a id="pl.143.16"></a><var>143.16</var>(4) obligations sold to any board, department, or agency of the United States of <br />
         		<a id="pl.143.17"></a><var>143.17</var>America or of the state of Minnesota, in accordance with rules or regulations promulgated <br />
         		<a id="pl.143.18"></a><var>143.18</var>by such board, department, or agency;<br />
         		<a id="pl.143.19"></a><var>143.19</var>(5) obligations issued to fund pension and retirement fund liabilities under section <br />
         		
         <statute_ref><a id="pl.143.20"></a><var>143.20</var>475.52, subdivision 6
         </statute_ref>, obligations issued with tender options under section 
         <statute_ref>475.54, <br />
            		<a id="pl.143.21"></a><var>143.21</var>subdivision 5a
         </statute_ref>, crossover refunding obligations referred to in section 
         <statute_ref>475.67, subdivision <br />
            		<a id="pl.143.22"></a><var>143.22</var>13
         </statute_ref>, and any issue of obligations comprised in whole or in part of obligations bearing <br />
         		<a id="pl.143.23"></a><var>143.23</var>interest at a rate or rates which vary periodically referred to in section 
         <statute_ref>475.56</statute_ref>;<br />
         		<a id="pl.143.24"></a><var>143.24</var>(6) obligations to be issued for a purpose, in a manner, and upon terms and <br />
         		<a id="pl.143.25"></a><var>143.25</var>conditions authorized by law, if the governing body of the municipality, on the advice of <br />
         		<a id="pl.143.26"></a><var>143.26</var>bond counsel or special tax counsel, determines that interest on the obligations cannot be <br />
         		<a id="pl.143.27"></a><var>143.27</var>represented to be excluded from gross income for purposes of federal income taxation;<br />
         		<a id="pl.143.28"></a><var>143.28</var>(7) obligations issued in the form of an installment purchase contract, lease purchase <br />
         		<a id="pl.143.29"></a><var>143.29</var>agreement, or other similar agreement;<br />
         		<a id="pl.143.30"></a><var>143.30</var>(8) obligations sold under a bond reinvestment program; and<br />
         		<a id="pl.143.31"></a><var>143.31</var>(9) if the municipality has retained an independent financial municipal advisor, <br />
         		<a id="pl.143.32"></a><var>143.32</var>obligations which the governing body determines shall be sold by private negotiation.<br />
         		<br />
         		<a id="bill.9.0.0"></a><div class="xtend_ce"><a id="pl.144.1"></a><var>144.1</var><b>ARTICLE 9</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.144.2"></a><var>144.2</var><b>IRON RANGE RESOURCES AND REHABILITATION</b><br />
            		
         </div><br />
         		<a id="bill.9.1.0"></a><a id="pl.144.3"></a><var>144.3</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2014, section 15.38, subdivision 7, is amended to read:<br />
         		<a id="pl.144.4"></a><var>144.4</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Iron Range resources and rehabilitation </b><b>Board</b><b>.</b> After seeking <br />
         		<a id="pl.144.5"></a><var>144.5</var>a recommendation from the Iron Range Resources and Rehabilitation Board, the <br />
         		<a id="pl.144.6"></a><var>144.6</var>commissioner of Iron Range resources and rehabilitation Board may purchase insurance it <br />
         		<a id="pl.144.7"></a><var>144.7</var>considers the commissioner deems necessary and appropriate to insure facilities operated <br />
         		<a id="pl.144.8"></a><var>144.8</var>by the board.<br />
         		<br />
         		<a id="bill.9.2.0"></a><a id="pl.144.9"></a><var>144.9</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 116J.424, is amended to read:<br />
         		<a id="pl.144.10"></a><var>144.10</var><b>116J.424 IRON RANGE RESOURCES AND REHABILITATION </b><b>BOARD</b><b> </b><br />
         		<a id="pl.144.11"></a><var>144.11</var><b>CONTRIBUTION.</b><br />
         		<a id="pl.144.12"></a><var>144.12</var>The commissioner of the Iron Range resources and rehabilitation Board with <br />
         		<a id="pl.144.13"></a><var>144.13</var>approval by the board, shall provide an equal match for any loan or equity investment <br />
         		<a id="pl.144.14"></a><var>144.14</var>made for a facility located in the tax relief area defined in section 
         <statute_ref>273.134, paragraph (b)</statute_ref>, <br />
         		<a id="pl.144.15"></a><var>144.15</var>by the Minnesota minerals 21st century fund created by section 
         <statute_ref>116J.423</statute_ref>. The match may <br />
         		<a id="pl.144.16"></a><var>144.16</var>be in the form of a loan or equity investment, notwithstanding whether the fund makes <br />
         		<a id="pl.144.17"></a><var>144.17</var>a loan or equity investment. The state shall not acquire an equity interest because of an <br />
         		<a id="pl.144.18"></a><var>144.18</var>equity investment or loan by the board under this section and the board at its sole discretion <br />
         		<a id="pl.144.19"></a><var>144.19</var>commissioner, after consultation with the Iron Range Resources and Rehabilitation Board, <br />
         		<a id="pl.144.20"></a><var>144.20</var>shall have the sole discretion to decide what interest it the board acquires in a project. The <br />
         		<a id="pl.144.21"></a><var>144.21</var>commissioner of employment and economic development may require a commitment <br />
         		<a id="pl.144.22"></a><var>144.22</var>from the board commissioner to make the match prior to disbursing money from the fund.<br />
         		<br />
         		<a id="bill.9.3.0"></a><a id="pl.144.23"></a><var>144.23</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 216B.161, subdivision 1, is amended to read:<br />
         		<a id="pl.144.24"></a><var>144.24</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br />
         		<a id="pl.144.25"></a><var>144.25</var>have the meanings given them in this subdivision.<br />
         		<a id="pl.144.26"></a><var>144.26</var>(b) "Area development rate" means a rate schedule established by a utility that <br />
         		<a id="pl.144.27"></a><var>144.27</var>provides customers within an area development zone service under a base utility rate <br />
         		<a id="pl.144.28"></a><var>144.28</var>schedule, except that charges may be reduced from the base rate as agreed upon by the <br />
         		<a id="pl.144.29"></a><var>144.29</var>utility and the customer consistent with this section.<br />
         		<a id="pl.144.30"></a><var>144.30</var>(c) "Area development zone" means a contiguous or noncontiguous area designated <br />
         		<a id="pl.144.31"></a><var>144.31</var>by an authority or municipality for development or redevelopment and within which one <br />
         		<a id="pl.144.32"></a><var>144.32</var>of the following conditions exists:<br />
         		<a id="pl.144.33"></a><var>144.33</var>(1) obsolete buildings not suitable for improvement or conversion or other identified <br />
         		<a id="pl.144.34"></a><var>144.34</var>hazards to the health, safety, and general well-being of the community;<br />
         		<a id="pl.145.1"></a><var>145.1</var>(2) buildings in need of substantial rehabilitation or in substandard condition; or<br />
         		<a id="pl.145.2"></a><var>145.2</var>(3) low values and damaged investments.<br />
         		<a id="pl.145.3"></a><var>145.3</var>(d) "Authority" means a rural development financing authority established under <br />
         		<a id="pl.145.4"></a><var>145.4</var>sections 
         <statute_ref>469.142</statute_ref> to 
         <statute_ref>469.151</statute_ref>; a housing and redevelopment authority established under <br />
         		<a id="pl.145.5"></a><var>145.5</var>sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>; a port authority established under sections 
         <statute_ref>469.048</statute_ref> to <br />
         		
         <statute_ref><a id="pl.145.6"></a><var>145.6</var>469.068
         </statute_ref>; an economic development authority established under sections 
         <statute_ref>469.090</statute_ref> <br />
         		<a id="pl.145.7"></a><var>145.7</var>to 
         <statute_ref>469.108</statute_ref>; a redevelopment agency as defined in sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>; the <br />
         		<a id="pl.145.8"></a><var>145.8</var>commissioner of Iron Range resources and rehabilitation, acting after consultation <br />
         		<a id="pl.145.9"></a><var>145.9</var>with the board established under section 
         <statute_ref>298.22</statute_ref>; a municipality that is administering a <br />
         		<a id="pl.145.10"></a><var>145.10</var>development district created under sections 
         <statute_ref>469.124</statute_ref> to 
         <statute_ref>469.133</statute_ref> or any special law; a <br />
         		<a id="pl.145.11"></a><var>145.11</var>municipality that undertakes a project under sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, except a town <br />
         		<a id="pl.145.12"></a><var>145.12</var>located outside the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>, or with <br />
         		<a id="pl.145.13"></a><var>145.13</var>a population of 5,000 persons or less; or a municipality that exercises the powers of a port <br />
         		<a id="pl.145.14"></a><var>145.14</var>authority under any general or special law.<br />
         		<a id="pl.145.15"></a><var>145.15</var>(e) "Municipality" means a city, however organized, and, with respect to a project <br />
         		<a id="pl.145.16"></a><var>145.16</var>undertaken under sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, "municipality" has the meaning given in <br />
         		<a id="pl.145.17"></a><var>145.17</var>sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, and, with respect to a project undertaken under sections <br />
         		
         <statute_ref><a id="pl.145.18"></a><var>145.18</var>469.142
         </statute_ref> to 
         <statute_ref>469.151</statute_ref> or a county or multicounty project undertaken under sections 
         <statute_ref>469.004</statute_ref> <br />
         		<a id="pl.145.19"></a><var>145.19</var>to 
         <statute_ref>469.008</statute_ref>, also includes any county.<br />
         		<br />
         		<a id="bill.9.4.0"></a><a id="pl.145.20"></a><var>145.20</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 276A.01, subdivision 8, is amended to read:<br />
         		<a id="pl.145.21"></a><var>145.21</var>&#160;&#160;&#160;&#160;Subd. 8. <b>Municipality.</b> "Municipality" means a city, town, or township located <br />
         		<a id="pl.145.22"></a><var>145.22</var>in whole or part within the area. If a municipality is located partly within and partly <br />
         		<a id="pl.145.23"></a><var>145.23</var>without the area, the references in sections 
         <statute_ref>276A.01</statute_ref> to 
         <statute_ref>276A.09</statute_ref> to property or any portion <br />
         		<a id="pl.145.24"></a><var>145.24</var>thereof subject to taxation or taxing jurisdiction within the municipality are to the property <br />
         		<a id="pl.145.25"></a><var>145.25</var>or portion thereof that is located in that portion of the municipality within the area, <br />
         		<a id="pl.145.26"></a><var>145.26</var>except that the fiscal capacity of the municipality must be computed upon the basis of the <br />
         		<a id="pl.145.27"></a><var>145.27</var>valuation and population of the entire municipality. A municipality shall be excluded from <br />
         		<a id="pl.145.28"></a><var>145.28</var>the area if its municipal comprehensive zoning and planning policies conscientiously <br />
         		<a id="pl.145.29"></a><var>145.29</var>exclude most commercial-industrial development, for reasons other than preserving an <br />
         		<a id="pl.145.30"></a><var>145.30</var>agricultural use. The commissioner of Iron Range resources and rehabilitation Board and <br />
         		<a id="pl.145.31"></a><var>145.31</var>the commissioner of revenue shall jointly make this determination annually and shall <br />
         		<a id="pl.145.32"></a><var>145.32</var>notify those municipalities that are ineligible to participate in the tax base sharing program <br />
         		<a id="pl.145.33"></a><var>145.33</var>provided in this chapter for the following year. Before making the joint determination, the <br />
         		<a id="pl.145.34"></a><var>145.34</var>commissioner of Iron Range resources and rehabilitation shall seek a recommendation <br />
         		<a id="pl.145.35"></a><var>145.35</var>from the Iron Range Resources and Rehabilitation Board.<br />
         		<br />
         		<a id="bill.9.5.0"></a><a id="pl.146.1"></a><var>146.1</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 276A.01, subdivision 17, is amended to read:<br />
         		<a id="pl.146.2"></a><var>146.2</var>&#160;&#160;&#160;&#160;Subd. 17. <b>School fund allocation.</b> (a) "School fund allocation" means an amount up <br />
         		<a id="pl.146.3"></a><var>146.3</var>to 25 percent of the areawide levy certified by the commissioner of Iron Range resources <br />
         		<a id="pl.146.4"></a><var>146.4</var>and rehabilitation, after seeking a recommendation from the Iron Range Resources and <br />
         		<a id="pl.146.5"></a><var>146.5</var>Rehabilitation Board, to be used for the purposes of the Iron Range school consolidation <br />
         		<a id="pl.146.6"></a><var>146.6</var>and cooperatively operated school account under section 
         <statute_ref>298.28, subdivision 7a</statute_ref>.<br />
         		<a id="pl.146.7"></a><var>146.7</var>(b) The allocation under paragraph (a) shall only be made after the commissioner of <br />
         		<a id="pl.146.8"></a><var>146.8</var>Iron Range resources and rehabilitation, after seeking a recommendation from the Iron <br />
         		<a id="pl.146.9"></a><var>146.9</var>Range Resources and Rehabilitation Board, has certified by June 30 that the Iron Range <br />
         		<a id="pl.146.10"></a><var>146.10</var>school consolidation and cooperatively operated account has insufficient funds to make <br />
         		<a id="pl.146.11"></a><var>146.11</var>payments as authorized under section 
         <statute_ref>298.28, subdivision 7a</statute_ref>.<br />
         		<br />
         		<a id="bill.9.6.0"></a><a id="pl.146.12"></a><var>146.12</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 282.38, subdivision 1, is amended to read:<br />
         		<a id="pl.146.13"></a><var>146.13</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Development.</b> In any county where the county board by proper <br />
         		<a id="pl.146.14"></a><var>146.14</var>resolution sets aside funds for forest development pursuant to section 
         <statute_ref>282.08</statute_ref>, clause (5), <br />
         		<a id="pl.146.15"></a><var>146.15</var>item (i), or section 
         <statute_ref>459.06, subdivision 2</statute_ref>, the commissioner of Iron Range resources <br />
         		<a id="pl.146.16"></a><var>146.16</var>and rehabilitation with the approval of the, after seeking a recommendation from the <br />
         		<a id="pl.146.17"></a><var>146.17</var>Iron Range Resources and Rehabilitation Board, may upon request of the county board <br />
         		<a id="pl.146.18"></a><var>146.18</var>assist said county in carrying out any project for the long range development of its forest <br />
         		<a id="pl.146.19"></a><var>146.19</var>resources through matching of funds or otherwise.<br />
         		<br />
         		<a id="bill.9.7.0"></a><a id="pl.146.20"></a><var>146.20</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 298.001, subdivision 8, is amended to read:<br />
         		<a id="pl.146.21"></a><var>146.21</var>&#160;&#160;&#160;&#160;Subd. 8. <b>Commissioner.</b> "Commissioner" means the commissioner of revenue <br />
         		<a id="pl.146.22"></a><var>146.22</var>of the state of Minnesota, except that when used in sections 298.22 to 298.227, and <br />
         		<a id="pl.146.23"></a><var>146.23</var>298.291 to 298.298, "commissioner" means the commissioner of Iron Range resources <br />
         		<a id="pl.146.24"></a><var>146.24</var>and rehabilitation.<br />
         		<br />
         		<a id="bill.9.8.0"></a><a id="pl.146.25"></a><var>146.25</var>&#160;&#160;&#160;&#160;Sec. 8. Minnesota Statutes 2014, section 298.22, subdivision 1, is amended to read:<br />
         		<a id="pl.146.26"></a><var>146.26</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>The Office of the Commissioner of Iron Range resources </b><br />
         		<a id="pl.146.27"></a><var>146.27</var><b>and rehabilitation.</b> (a) The Office of the Commissioner of Iron Range resources and <br />
         		<a id="pl.146.28"></a><var>146.28</var>rehabilitation is created as an agency in the executive branch of state government. The <br />
         		<a id="pl.146.29"></a><var>146.29</var>governor shall appoint the commissioner of Iron Range resources and rehabilitation <br />
         		<a id="pl.146.30"></a><var>146.30</var>under section 
         <statute_ref>15.06</statute_ref>. The commissioner may expend amounts appropriated to the <br />
         		<a id="pl.146.31"></a><var>146.31</var>commissioner or the board for projects after submitting the expenditure to the board for <br />
         		<a id="pl.146.32"></a><var>146.32</var>a recommendation under subdivision 1a.<br />
         		<a id="pl.147.1"></a><var>147.1</var>(b) The commissioner may hold other positions or appointments that are not <br />
         		<a id="pl.147.2"></a><var>147.2</var>incompatible with duties as commissioner of Iron Range resources and rehabilitation. The <br />
         		<a id="pl.147.3"></a><var>147.3</var>commissioner may appoint a deputy commissioner. All expenses of the commissioner, <br />
         		<a id="pl.147.4"></a><var>147.4</var>including the payment of staff and other assistance as may be necessary, must be paid <br />
         		<a id="pl.147.5"></a><var>147.5</var>out of the amounts appropriated by section 
         <statute_ref>298.28</statute_ref> or otherwise made available by law <br />
         		<a id="pl.147.6"></a><var>147.6</var>to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner <br />
         		<a id="pl.147.7"></a><var>147.7</var>may utilize contracting options available under section 
         <statute_ref>471.345</statute_ref> when the commissioner <br />
         		<a id="pl.147.8"></a><var>147.8</var>determines it is in the best interest of the agency. The agency is not subject to sections <br />
         		
         <statute_ref><a id="pl.147.9"></a><var>147.9</var>16E.016
         </statute_ref> and 
         <statute_ref>16C.05</statute_ref>.<br />
         		<a id="pl.147.10"></a><var>147.10</var>(c) When the commissioner determines that distress and unemployment exists or <br />
         		<a id="pl.147.11"></a><var>147.11</var>may exist in the future in any county by reason of the removal of natural resources or <br />
         		<a id="pl.147.12"></a><var>147.12</var>a possibly limited use of natural resources in the future and any resulting decrease in <br />
         		<a id="pl.147.13"></a><var>147.13</var>employment, the commissioner may use whatever amounts of the appropriation made to <br />
         		<a id="pl.147.14"></a><var>147.14</var>the commissioner of revenue in section 
         <statute_ref>298.28</statute_ref> that are determined to be necessary and <br />
         		<a id="pl.147.15"></a><var>147.15</var>proper in the development of the remaining resources of the county and in the vocational <br />
         		<a id="pl.147.16"></a><var>147.16</var>training and rehabilitation of its residents, except that the amount needed to cover cost <br />
         		<a id="pl.147.17"></a><var>147.17</var>overruns awarded to a contractor by an arbitrator in relation to a contract awarded by <br />
         		<a id="pl.147.18"></a><var>147.18</var>the commissioner or in effect after July 1, 1985, is appropriated from the general fund. <br />
         		<a id="pl.147.19"></a><var>147.19</var>For the purposes of this section, "development of remaining resources" includes, but is <br />
         		<a id="pl.147.20"></a><var>147.20</var>not limited to, the promotion of tourism.<br />
         		<br />
         		<a id="bill.9.9.0"></a><a id="pl.147.21"></a><var>147.21</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read:<br />
         		<a id="pl.147.22"></a><var>147.22</var>&#160;&#160;&#160;&#160;Subd. 1a. <b>Iron Range Resources and Rehabilitation Board.</b> The Iron Range <br />
         		<a id="pl.147.23"></a><var>147.23</var>Resources and Rehabilitation Board consists of the state senators and representatives <br />
         		<a id="pl.147.24"></a><var>147.24</var>elected from state senatorial or legislative districts in which one-third or more of the <br />
         		<a id="pl.147.25"></a><var>147.25</var>residents reside in a taconite assistance area as defined in section 
         <statute_ref>273.1341</statute_ref>. One additional <br />
         		<a id="pl.147.26"></a><var>147.26</var>state senator shall also be appointed by the senate Subcommittee on Committees of the <br />
         		<a id="pl.147.27"></a><var>147.27</var>Committee on Rules and Administration. All expenditures and projects made by the <br />
         		<a id="pl.147.28"></a><var>147.28</var>commissioner shall first be submitted to the board for approval. The board shall recommend <br />
         		<a id="pl.147.29"></a><var>147.29</var>approval or disapproval or modification of the expenditures and projects. The expenses <br />
         		<a id="pl.147.30"></a><var>147.30</var>of the board shall be paid by the state from the funds raised pursuant to this section. <br />
         		<a id="pl.147.31"></a><var>147.31</var>Members of the board may be reimbursed for expenses in the manner provided in sections <br />
         		
         <statute_ref><a id="pl.147.32"></a><var>147.32</var>3.099
         </statute_ref>, subdivision 1, and 
         <statute_ref>3.101</statute_ref>, and may receive per diem payments during the interims <br />
         		<a id="pl.147.33"></a><var>147.33</var>between legislative sessions in the manner provided in section 
         <statute_ref>3.099, subdivision 1</statute_ref>.<br />
         		<a id="pl.148.1"></a><var>148.1</var>The members shall be appointed in January of every odd-numbered year, and shall <br />
         		<a id="pl.148.2"></a><var>148.2</var>serve until January of the next odd-numbered year. Vacancies on the board shall be filled <br />
         		<a id="pl.148.3"></a><var>148.3</var>in the same manner as original members were chosen.<br />
         		<br />
         		<a id="bill.9.10.0"></a><a id="pl.148.4"></a><var>148.4</var>&#160;&#160;&#160;&#160;Sec. 10. Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read:<br />
         		<a id="pl.148.5"></a><var>148.5</var>&#160;&#160;&#160;&#160;Subd. 5a. <b>Forest trust.</b> The commissioner, upon approval by after requesting a <br />
         		<a id="pl.148.6"></a><var>148.6</var>recommendation from the board, may purchase forest lands in the taconite assistance area <br />
         		<a id="pl.148.7"></a><var>148.7</var>defined in under section 
         <statute_ref>273.1341 </statute_ref>with funds specifically authorized for the purchase. The <br />
         		<a id="pl.148.8"></a><var>148.8</var>acquired forest lands must be held in trust for the benefit of the citizens of the taconite <br />
         		<a id="pl.148.9"></a><var>148.9</var>assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall <br />
         		<a id="pl.148.10"></a><var>148.10</var>be managed and developed for recreation and economic development purposes. The <br />
         		<a id="pl.148.11"></a><var>148.11</var>commissioner, upon approval by after requesting a recommendation from the board, <br />
         		<a id="pl.148.12"></a><var>148.12</var>may sell forest lands purchased under this subdivision if the board finds commissioner <br />
         		<a id="pl.148.13"></a><var>148.13</var>determines that the sale advances the purposes of the trust. Proceeds derived from the <br />
         		<a id="pl.148.14"></a><var>148.14</var>management or sale of the lands and from the sale of timber or removal of gravel or <br />
         		<a id="pl.148.15"></a><var>148.15</var>other minerals from these forest lands shall be deposited into an Iron Range Miners' <br />
         		<a id="pl.148.16"></a><var>148.16</var>Memorial Forest account that is established within the state financial accounts. Funds may <br />
         		<a id="pl.148.17"></a><var>148.17</var>be expended from the account upon approval by after the commissioner has sought a <br />
         		<a id="pl.148.18"></a><var>148.18</var>recommendation from the board, to purchase, manage, administer, convey interests in, <br />
         		<a id="pl.148.19"></a><var>148.19</var>and improve the forest lands. With approval by After the commissioner has sought a <br />
         		<a id="pl.148.20"></a><var>148.20</var>recommendation from the board, money in the Iron Range Miners' Memorial Forest <br />
         		<a id="pl.148.21"></a><var>148.21</var>account may be transferred into the corpus of the Douglas J. Johnson economic protection <br />
         		<a id="pl.148.22"></a><var>148.22</var>trust fund established under sections 
         <statute_ref>298.291 </statute_ref>to 
         <statute_ref>298.294</statute_ref>. The property acquired under <br />
         		<a id="pl.148.23"></a><var>148.23</var>the authority granted by this subdivision and income derived from the property or the <br />
         		<a id="pl.148.24"></a><var>148.24</var>operation or management of the property are exempt from taxation by the state or its <br />
         		<a id="pl.148.25"></a><var>148.25</var>political subdivisions while held by the forest trust.<br />
         		<br />
         		<a id="bill.9.11.0"></a><a id="pl.148.26"></a><var>148.26</var>&#160;&#160;&#160;&#160;Sec. 11. Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read:<br />
         		<a id="pl.148.27"></a><var>148.27</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Private entity participation.</b> After seeking a recommendation from the <br />
         		<a id="pl.148.28"></a><var>148.28</var>board, the commissioner may acquire an equity interest in any project for which it the <br />
         		<a id="pl.148.29"></a><var>148.29</var>commissioner provides funding. The commissioner may establish, participate in the <br />
         		<a id="pl.148.30"></a><var>148.30</var>management of, and dispose of the assets of charitable foundations, nonprofit limited <br />
         		<a id="pl.148.31"></a><var>148.31</var>liability companies, and nonprofit corporations associated with any project for which it <br />
         		<a id="pl.148.32"></a><var>148.32</var>provides funding, including specifically, but without limitation, a corporation within the <br />
         		<a id="pl.148.33"></a><var>148.33</var>meaning of section 
         <statute_ref>317A.011, subdivision 6</statute_ref>.<br />
         		<br />
         		<a id="bill.9.12.0"></a><a id="pl.149.1"></a><var>149.1</var>&#160;&#160;&#160;&#160;Sec. 12. Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read:<br />
         		<a id="pl.149.2"></a><var>149.2</var>&#160;&#160;&#160;&#160;Subd. 8. <b>Spending priority.</b> In making or approving recommending any <br />
         		<a id="pl.149.3"></a><var>149.3</var>expenditures on programs or projects, the commissioner and the board shall give the <br />
         		<a id="pl.149.4"></a><var>149.4</var>highest priority to programs and projects that target relief to those areas of the taconite <br />
         		<a id="pl.149.5"></a><var>149.5</var>assistance area as defined in section 
         <statute_ref>273.1341</statute_ref>, that have the largest percentages of job <br />
         		<a id="pl.149.6"></a><var>149.6</var>losses and population losses directly attributable to the economic downturn in the taconite <br />
         		<a id="pl.149.7"></a><var>149.7</var>industry since the 1980s. The commissioner and the board shall compare the 1980 <br />
         		<a id="pl.149.8"></a><var>149.8</var>population and employment figures with the 2000 population and employment figures, <br />
         		<a id="pl.149.9"></a><var>149.9</var>and shall specifically consider the job losses in 2000 and 2001 resulting from the closure <br />
         		<a id="pl.149.10"></a><var>149.10</var>of LTV Steel Mining Company, in making or approving recommending expenditures <br />
         		<a id="pl.149.11"></a><var>149.11</var>consistent with this subdivision, as well as the areas of residence of persons who suffered <br />
         		<a id="pl.149.12"></a><var>149.12</var>job loss for which relief is to be targeted under this subdivision. The commissioner <br />
         		<a id="pl.149.13"></a><var>149.13</var>may lease, for a term not exceeding 50 years and upon the terms determined by the <br />
         		<a id="pl.149.14"></a><var>149.14</var>commissioner and approved after seeking review by the board, surface and mineral <br />
         		<a id="pl.149.15"></a><var>149.15</var>interests owned or acquired by the state of Minnesota acting by and through the office of <br />
         		<a id="pl.149.16"></a><var>149.16</var>the commissioner of Iron Range resources and rehabilitation within those portions of the <br />
         		<a id="pl.149.17"></a><var>149.17</var>taconite assistance area affected by the closure of the LTV Steel Mining Company facility <br />
         		<a id="pl.149.18"></a><var>149.18</var>near Hoyt Lakes. The payments and royalties from these leases must be deposited into the <br />
         		<a id="pl.149.19"></a><var>149.19</var>fund established in section 
         <statute_ref>298.292</statute_ref>. This subdivision supersedes any other conflicting <br />
         		<a id="pl.149.20"></a><var>149.20</var>provisions of law and does not preclude the commissioner and the board from making <br />
         		<a id="pl.149.21"></a><var>149.21</var>expenditures for programs and projects in other areas after seeking review by the board.<br />
         		<br />
         		<a id="bill.9.13.0"></a><a id="pl.149.22"></a><var>149.22</var>&#160;&#160;&#160;&#160;Sec. 13. Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read:<br />
         		<a id="pl.149.23"></a><var>149.23</var>&#160;&#160;&#160;&#160;Subd. 10. <b>Sale or privatization of functions.</b> The commissioner of Iron <br />
         		<a id="pl.149.24"></a><var>149.24</var>Range resources and rehabilitation may not sell or privatize the Ironworld Discovery <br />
         		<a id="pl.149.25"></a><var>149.25</var>Center or Giants Ridge Golf and Ski Resort without prior approval by first seeking a <br />
         		<a id="pl.149.26"></a><var>149.26</var>recommendation from the board.<br />
         		<br />
         		<a id="bill.9.14.0"></a><a id="pl.149.27"></a><var>149.27</var>&#160;&#160;&#160;&#160;Sec. 14. Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read:<br />
         		<a id="pl.149.28"></a><var>149.28</var>&#160;&#160;&#160;&#160;Subd. 11. <b>Budgeting.</b> The commissioner of Iron Range resources and rehabilitation <br />
         		<a id="pl.149.29"></a><var>149.29</var>shall annually prepare a budget for operational expenditures, programs, and projects, and <br />
         		<a id="pl.149.30"></a><var>149.30</var>submit it to the Iron Range Resources and Rehabilitation Board for a recommendation. <br />
         		<a id="pl.149.31"></a><var>149.31</var>After the budget is approved by the board and the governor, the commissioner may spend <br />
         		<a id="pl.149.32"></a><var>149.32</var>money in accordance with the approved budget.<br />
         		<br />
         		<a id="bill.9.15.0"></a><a id="pl.149.33"></a><var>149.33</var>&#160;&#160;&#160;&#160;Sec. 15. Minnesota Statutes 2014, section 298.221, is amended to read:<br />
         		<a id="pl.150.1"></a><var>150.1</var><b>298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.</b><br />
         		<a id="pl.150.2"></a><var>150.2</var>(a) Except as provided in paragraph (c), all money paid to the state of Minnesota <br />
         		<a id="pl.150.3"></a><var>150.3</var>pursuant to the terms of any contract entered into by the state under authority of section <br />
         		
         <statute_ref><a id="pl.150.4"></a><var>150.4</var>298.22
         </statute_ref> and any fees which may, in the discretion of the commissioner of Iron Range <br />
         		<a id="pl.150.5"></a><var>150.5</var>resources and rehabilitation, be charged in connection with any project pursuant to that <br />
         		<a id="pl.150.6"></a><var>150.6</var>section as amended, shall be deposited in the state treasury to the credit of the Iron Range <br />
         		<a id="pl.150.7"></a><var>150.7</var>Resources and Rehabilitation Board account in the special revenue fund and are hereby <br />
         		<a id="pl.150.8"></a><var>150.8</var>appropriated for the purposes of section 
         <statute_ref>298.22</statute_ref>.<br />
         		<a id="pl.150.9"></a><var>150.9</var>(b) Notwithstanding section 
         <statute_ref>16A.013</statute_ref>, merchandise may be accepted by the <br />
         		<a id="pl.150.10"></a><var>150.10</var>commissioner of the Iron Range Resources and Rehabilitation Board for payment of <br />
         		<a id="pl.150.11"></a><var>150.11</var>advertising contracts if the commissioner determines that the merchandise can be used <br />
         		<a id="pl.150.12"></a><var>150.12</var>for special event prizes or mementos at facilities operated by the board. Nothing in this <br />
         		<a id="pl.150.13"></a><var>150.13</var>paragraph authorizes the commissioner or a member of the board to receive merchandise <br />
         		<a id="pl.150.14"></a><var>150.14</var>for personal use.<br />
         		<a id="pl.150.15"></a><var>150.15</var>(c) All fees charged by the commissioner in connection with public use of the <br />
         		<a id="pl.150.16"></a><var>150.16</var>state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other <br />
         		<a id="pl.150.17"></a><var>150.17</var>revenues derived by the commissioner from the operation or lease of those facilities <br />
         		<a id="pl.150.18"></a><var>150.18</var>and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge <br />
         		<a id="pl.150.19"></a><var>150.19</var>Recreation Area must be deposited into an Iron Range Resources and Rehabilitation <br />
         		<a id="pl.150.20"></a><var>150.20</var>Board account that is created within the state enterprise fund. All funds deposited in the <br />
         		<a id="pl.150.21"></a><var>150.21</var>enterprise fund account are appropriated to the commissioner to be expended, subject to <br />
         		<a id="pl.150.22"></a><var>150.22</var>approval by after seeking a recommendation from the board, as follows:<br />
         		<a id="pl.150.23"></a><var>150.23</var>(1) to pay costs associated with the construction, equipping, operation, repair, or <br />
         		<a id="pl.150.24"></a><var>150.24</var>improvement of the Giants Ridge Recreation Area facilities or lands;<br />
         		<a id="pl.150.25"></a><var>150.25</var>(2) to pay principal, interest and associated bond issuance, reserve, and servicing <br />
         		<a id="pl.150.26"></a><var>150.26</var>costs associated with the financing of the facilities; and<br />
         		<a id="pl.150.27"></a><var>150.27</var>(3) to pay the costs of any other project authorized under section 
         <statute_ref>298.22</statute_ref>.<br />
         		<br />
         		<a id="bill.9.16.0"></a><a id="pl.150.28"></a><var>150.28</var>&#160;&#160;&#160;&#160;Sec. 16. Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read:<br />
         		<a id="pl.150.29"></a><var>150.29</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Project approval.</b> All projects authorized by this section shall be submitted <br />
         		<a id="pl.150.30"></a><var>150.30</var>by the commissioner to the Iron Range Resources and Rehabilitation Board for approval <br />
         		<a id="pl.150.31"></a><var>150.31</var>by a recommendation from the board. Prior to the commencement of a project involving <br />
         		<a id="pl.150.32"></a><var>150.32</var>the exercise by the commissioner of any authority of sections 
         <statute_ref>469.174</statute_ref> to 
         <statute_ref>469.179</statute_ref>, the <br />
         		<a id="pl.150.33"></a><var>150.33</var>governing body of each municipality in which any part of the project is located and the <br />
         		<a id="pl.150.34"></a><var>150.34</var>county board of any county containing portions of the project not located in an incorporated <br />
         		<a id="pl.150.35"></a><var>150.35</var>area shall by majority vote approve or disapprove the project. Any project approved by <br />
         		<a id="pl.151.1"></a><var>151.1</var>the board commissioner and the applicable governing bodies, if any, together with detailed <br />
         		<a id="pl.151.2"></a><var>151.2</var>information concerning the project, its costs, the sources of its funding, and the amount of <br />
         		<a id="pl.151.3"></a><var>151.3</var>any bonded indebtedness to be incurred in connection with the project, shall be transmitted <br />
         		<a id="pl.151.4"></a><var>151.4</var>to the governor, who shall approve, disapprove, or return the proposal for additional <br />
         		<a id="pl.151.5"></a><var>151.5</var>consideration within 30 days of receipt. No project authorized under this section shall be <br />
         		<a id="pl.151.6"></a><var>151.6</var>undertaken, and no obligations shall be issued and no tax increments shall be expended for <br />
         		<a id="pl.151.7"></a><var>151.7</var>a project authorized under this section until the project has been approved by the governor.<br />
         		<br />
         		<a id="bill.9.17.0"></a><a id="pl.151.8"></a><var>151.8</var>&#160;&#160;&#160;&#160;Sec. 17. Minnesota Statutes 2014, section 298.2213, subdivision 4, is amended to read:<br />
         		<a id="pl.151.9"></a><var>151.9</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Project approval.</b> After seeking a recommendation from the board and, <br />
         		<a id="pl.151.10"></a><var>151.10</var>the commissioner shall by August 1 each year prepare a list of projects to be funded from <br />
         		<a id="pl.151.11"></a><var>151.11</var>the money appropriated in this section with necessary supporting information including <br />
         		<a id="pl.151.12"></a><var>151.12</var>descriptions of the projects, plans, and cost estimates. A project must not be approved by <br />
         		<a id="pl.151.13"></a><var>151.13</var>the board commissioner unless it the commissioner finds that:<br />
         		<a id="pl.151.14"></a><var>151.14</var>(1) the project will materially assist, directly or indirectly, the creation of additional <br />
         		<a id="pl.151.15"></a><var>151.15</var>long-term employment opportunities;<br />
         		<a id="pl.151.16"></a><var>151.16</var>(2) the prospective benefits of the expenditure exceed the anticipated costs; and<br />
         		<a id="pl.151.17"></a><var>151.17</var>(3) in the case of assistance to private enterprise, the project will serve a sound <br />
         		<a id="pl.151.18"></a><var>151.18</var>business purpose.<br />
         		<a id="pl.151.19"></a><var>151.19</var>Each project must be approved by the board and the commissioner of Iron Range <br />
         		<a id="pl.151.20"></a><var>151.20</var>resources and rehabilitation. The list of projects must be submitted to the governor, <br />
         		<a id="pl.151.21"></a><var>151.21</var>who shall, by November 15 of each year, approve, disapprove, or return for further <br />
         		<a id="pl.151.22"></a><var>151.22</var>consideration, each project. The money for a project may be spent only upon approval of <br />
         		<a id="pl.151.23"></a><var>151.23</var>the project by the governor. The board commissioner may submit supplemental projects <br />
         		<a id="pl.151.24"></a><var>151.24</var>for approval at any time, after seeking a recommendation from the board.<br />
         		<br />
         		<a id="bill.9.18.0"></a><a id="pl.151.25"></a><var>151.25</var>&#160;&#160;&#160;&#160;Sec. 18. Minnesota Statutes 2014, section 298.2213, subdivision 5, is amended to read:<br />
         		<a id="pl.151.26"></a><var>151.26</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Advisory committees.</b> Before submission to the board of a proposal for <br />
         		<a id="pl.151.27"></a><var>151.27</var>a project for expenditure of money appropriated under this section, The commissioner <br />
         		<a id="pl.151.28"></a><var>151.28</var>of Iron Range resources and rehabilitation shall appoint a technical advisory committee <br />
         		<a id="pl.151.29"></a><var>151.29</var>consisting of at least seven persons who are knowledgeable in areas related to the <br />
         		<a id="pl.151.30"></a><var>151.30</var>objectives of the proposal. If the project involves investment in a scientific research <br />
         		<a id="pl.151.31"></a><var>151.31</var>proposal, at least four of the committee members must be knowledgeable in the specific <br />
         		<a id="pl.151.32"></a><var>151.32</var>scientific research area relating to the project. Members of the committees must be <br />
         		<a id="pl.151.33"></a><var>151.33</var>compensated as provided in section 
         <statute_ref>15.059, subdivision 3</statute_ref>. The board commissioner shall <br />
         		<a id="pl.151.34"></a><var>151.34</var>not act on a proposal for a request for expenditure of money appropriated under this <br />
         		<a id="pl.152.1"></a><var>152.1</var>section until it has received the commissioner has sought review from the board of the <br />
         		<a id="pl.152.2"></a><var>152.2</var>evaluation and recommendations of the technical advisory committee.<br />
         		<br />
         		<a id="bill.9.19.0"></a><a id="pl.152.3"></a><var>152.3</var>&#160;&#160;&#160;&#160;Sec. 19. Minnesota Statutes 2014, section 298.2213, subdivision 6, is amended to read:<br />
         		<a id="pl.152.4"></a><var>152.4</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Use of repayments and earnings.</b> Principal and interest received in <br />
         		<a id="pl.152.5"></a><var>152.5</var>repayment of loans made under this section must be deposited in the state treasury <br />
         		<a id="pl.152.6"></a><var>152.6</var>and are appropriated to the board for the purposes of this section northeast Minnesota <br />
         		<a id="pl.152.7"></a><var>152.7</var>economic development fund account in the special revenue fund in the state treasury. The <br />
         		<a id="pl.152.8"></a><var>152.8</var>commissioner of Iron Range resources and rehabilitation must seek a recommendation <br />
         		<a id="pl.152.9"></a><var>152.9</var>from the Iron Range Resources and Rehabilitation Board for any use of funds appropriated <br />
         		<a id="pl.152.10"></a><var>152.10</var>under this section.<br />
         		<br />
         		<a id="bill.9.20.0"></a><a id="pl.152.11"></a><var>152.11</var>&#160;&#160;&#160;&#160;Sec. 20. Minnesota Statutes 2014, section 298.223, subdivision 1, is amended to read:<br />
         		<a id="pl.152.12"></a><var>152.12</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Creation; purposes.</b> A fund called the taconite environmental <br />
         		<a id="pl.152.13"></a><var>152.13</var>protection fund is created for the purpose of reclaiming, restoring and enhancing those <br />
         		<a id="pl.152.14"></a><var>152.14</var>areas of northeast Minnesota located within the taconite assistance area defined in section <br />
         		
         <statute_ref><a id="pl.152.15"></a><var>152.15</var>273.1341
         </statute_ref>, that are adversely affected by the environmentally damaging operations <br />
         		<a id="pl.152.16"></a><var>152.16</var>involved in mining taconite and iron ore and producing iron ore concentrate and for the <br />
         		<a id="pl.152.17"></a><var>152.17</var>purpose of promoting the economic development of northeast Minnesota. The taconite <br />
         		<a id="pl.152.18"></a><var>152.18</var>environmental protection fund shall be used for the following purposes:<br />
         		<a id="pl.152.19"></a><var>152.19</var>(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation <br />
         		<a id="pl.152.20"></a><var>152.20</var>Board determines are in need of study and which will determine the environmental <br />
         		<a id="pl.152.21"></a><var>152.21</var>problems requiring remedial action;<br />
         		<a id="pl.152.22"></a><var>152.22</var>(2) reclamation, restoration, or reforestation of mine lands not otherwise provided <br />
         		<a id="pl.152.23"></a><var>152.23</var>for by state law;<br />
         		<a id="pl.152.24"></a><var>152.24</var>(3) local economic development projects but only if those projects are approved by <br />
         		<a id="pl.152.25"></a><var>152.25</var>the board commissioner after seeking a recommendation of the projects from the board, <br />
         		<a id="pl.152.26"></a><var>152.26</var>and public works, including construction of sewer and water systems located within the <br />
         		<a id="pl.152.27"></a><var>152.27</var>taconite assistance area defined in section 
         <statute_ref>273.1341</statute_ref>;<br />
         		<a id="pl.152.28"></a><var>152.28</var>(4) monitoring of mineral industry related health problems among mining employees;<br />
         		<a id="pl.152.29"></a><var>152.29</var>(5) local public works projects under section 
         <statute_ref>298.227</statute_ref>, paragraph (c); and<br />
         		<a id="pl.152.30"></a><var>152.30</var>(6) local public works projects as provided under this clause. The following amounts <br />
         		<a id="pl.152.31"></a><var>152.31</var>shall be distributed in 2009 based upon the taxable tonnage of production in 2008:<br />
         		<a id="pl.152.32"></a><var>152.32</var>(i) .4651 cent per ton to the city of Aurora for street repair and renovation;<br />
         		<a id="pl.152.33"></a><var>152.33</var>(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure <br />
         		<a id="pl.152.34"></a><var>152.34</var>improvements to the south side industrial site;<br />
         		<a id="pl.153.1"></a><var>153.1</var>(iii) .6460 cent per ton to the city of Buhl for street repair;<br />
         		<a id="pl.153.2"></a><var>153.2</var>(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;<br />
         		<a id="pl.153.3"></a><var>153.3</var>(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure <br />
         		<a id="pl.153.4"></a><var>153.4</var>upgrades;<br />
         		<a id="pl.153.5"></a><var>153.5</var>(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure <br />
         		<a id="pl.153.6"></a><var>153.6</var>upgrades;<br />
         		<a id="pl.153.7"></a><var>153.7</var>(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;<br />
         		<a id="pl.153.8"></a><var>153.8</var>(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility <br />
         		<a id="pl.153.9"></a><var>153.9</var>modifications for the miners' memorial;<br />
         		<a id="pl.153.10"></a><var>153.10</var>(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;<br />
         		<a id="pl.153.11"></a><var>153.11</var>(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;<br />
         		<a id="pl.153.12"></a><var>153.12</var>(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;<br />
         		<a id="pl.153.13"></a><var>153.13</var>(xii) .6460 cent per ton to the town of Balkan for community center repairs;<br />
         		<a id="pl.153.14"></a><var>153.14</var>(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;<br />
         		<a id="pl.153.15"></a><var>153.15</var>(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;<br />
         		<a id="pl.153.16"></a><var>153.16</var>(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;<br />
         		<a id="pl.153.17"></a><var>153.17</var>(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;<br />
         		<a id="pl.153.18"></a><var>153.18</var>(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;<br />
         		<a id="pl.153.19"></a><var>153.19</var>(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;<br />
         		<a id="pl.153.20"></a><var>153.20</var>(xix) .3230 cent per ton to Lake County for trail construction;<br />
         		<a id="pl.153.21"></a><var>153.21</var>(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand <br />
         		<a id="pl.153.22"></a><var>153.22</var>Marais;<br />
         		<a id="pl.153.23"></a><var>153.23</var>(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure <br />
         		<a id="pl.153.24"></a><var>153.24</var>improvements;<br />
         		<a id="pl.153.25"></a><var>153.25</var>(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;<br />
         		<a id="pl.153.26"></a><var>153.26</var>(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer <br />
         		<a id="pl.153.27"></a><var>153.27</var>improvements along Gayley Avenue;<br />
         		<a id="pl.153.28"></a><var>153.28</var>(xxiv) .3876 cent per ton to the city of Marble for construction of a city <br />
         		<a id="pl.153.29"></a><var>153.29</var>administration facility;<br />
         		<a id="pl.153.30"></a><var>153.30</var>(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the <br />
         		<a id="pl.153.31"></a><var>153.31</var>community center;<br />
         		<a id="pl.153.32"></a><var>153.32</var>(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure <br />
         		<a id="pl.153.33"></a><var>153.33</var>upgrades;<br />
         		<a id="pl.153.34"></a><var>153.34</var>(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades <br />
         		<a id="pl.153.35"></a><var>153.35</var>along Depot Street;<br />
         		<a id="pl.154.1"></a><var>154.1</var>(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter <br />
         		<a id="pl.154.2"></a><var>154.2</var>improvements;<br />
         		<a id="pl.154.3"></a><var>154.3</var>(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer <br />
         		<a id="pl.154.4"></a><var>154.4</var>infrastructure upgrades at Pokegema Golf Course and Park Place;<br />
         		<a id="pl.154.5"></a><var>154.5</var>(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades <br />
         		<a id="pl.154.6"></a><var>154.6</var>for 1st Avenue from River Road to 3rd Street SE; and<br />
         		<a id="pl.154.7"></a><var>154.7</var>(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing <br />
         		<a id="pl.154.8"></a><var>154.8</var>at Highway 2 and County Road 62.<br />
         		<br />
         		<a id="bill.9.21.0"></a><a id="pl.154.9"></a><var>154.9</var>&#160;&#160;&#160;&#160;Sec. 21. Minnesota Statutes 2014, section 298.223, subdivision 2, is amended to read:<br />
         		<a id="pl.154.10"></a><var>154.10</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Administration.</b> (a) The taconite area environmental protection fund shall <br />
         		<a id="pl.154.11"></a><var>154.11</var>be administered by the commissioner of the Iron Range Resources and Rehabilitation <br />
         		<a id="pl.154.12"></a><var>154.12</var>Board. The commissioner shall by September 1 of each year submit to the board a list <br />
         		<a id="pl.154.13"></a><var>154.13</var>of projects to be funded from the taconite area environmental protection fund, with such <br />
         		<a id="pl.154.14"></a><var>154.14</var>supporting information including description of the projects, plans, and cost estimates as <br />
         		<a id="pl.154.15"></a><var>154.15</var>may be necessary.<br />
         		<a id="pl.154.16"></a><var>154.16</var>&#160;&#160;&#160;&#160;(b) Each year no less than one-half of the amounts deposited into the taconite <br />
         		<a id="pl.154.17"></a><var>154.17</var>environmental protection fund must be used for public works projects, including <br />
         		<a id="pl.154.18"></a><var>154.18</var>construction of sewer and water systems, as specified under subdivision 1, clause (3). <br />
         		<a id="pl.154.19"></a><var>154.19</var>After seeking a recommendation from the Iron Range Resources and Rehabilitation Board, <br />
         		<a id="pl.154.20"></a><var>154.20</var>the commissioner may waive the requirements of this paragraph.<br />
         		<a id="pl.154.21"></a><var>154.21</var>&#160;&#160;&#160;&#160;(c) Upon approval by the board, The list of projects approved by the commissioner <br />
         		<a id="pl.154.22"></a><var>154.22</var>under this subdivision, after the commissioner has sought review of the projects by the <br />
         		<a id="pl.154.23"></a><var>154.23</var>board, shall be submitted to the governor by November 1 of each year. By December 1 of <br />
         		<a id="pl.154.24"></a><var>154.24</var>each year, the governor shall approve or disapprove, or return for further consideration, <br />
         		<a id="pl.154.25"></a><var>154.25</var>each project. Funds for a project may be expended only upon approval of the project by <br />
         		<a id="pl.154.26"></a><var>154.26</var>the board commissioner and the governor. The commissioner may submit supplemental <br />
         		<a id="pl.154.27"></a><var>154.27</var>projects to the board and for approval from the governor for approval after seeking review <br />
         		<a id="pl.154.28"></a><var>154.28</var>of the supplemental projects from the board at any time.<br />
         		<br />
         		<a id="bill.9.22.0"></a><a id="pl.154.29"></a><var>154.29</var>&#160;&#160;&#160;&#160;Sec. 22. Minnesota Statutes 2014, section 298.227, is amended to read:<br />
         		<a id="pl.154.30"></a><var>154.30</var><b>298.227 TACONITE ECONOMIC DEVELOPMENT FUND.</b><br />
         		<a id="pl.154.31"></a><var>154.31</var>&#160;&#160;&#160;&#160;(a) An amount equal to that distributed pursuant to each taconite producer's taxable <br />
         		<a id="pl.154.32"></a><var>154.32</var>production and qualifying sales under section 
         <statute_ref>298.28, subdivision 9a</statute_ref>, shall be held by <br />
         		<a id="pl.154.33"></a><var>154.33</var>the Iron Range Resources and Rehabilitation Board in a separate taconite economic <br />
         		<a id="pl.154.34"></a><var>154.34</var>development fund for each taconite and direct reduced ore producer. Money from the <br />
         		<a id="pl.155.1"></a><var>155.1</var>fund for each producer shall be released by the commissioner after review by a joint <br />
         		<a id="pl.155.2"></a><var>155.2</var>committee consisting of an equal number of representatives of the salaried employees and <br />
         		<a id="pl.155.3"></a><var>155.3</var>the nonsalaried production and maintenance employees of that producer. The District 11 <br />
         		<a id="pl.155.4"></a><var>155.4</var>director of the United States Steelworkers of America, on advice of each local employee <br />
         		<a id="pl.155.5"></a><var>155.5</var>president, shall select the employee members. In nonorganized operations, the employee <br />
         		<a id="pl.155.6"></a><var>155.6</var>committee shall be elected by the nonsalaried production and maintenance employees. The <br />
         		<a id="pl.155.7"></a><var>155.7</var>review must be completed no later than six months after the producer presents a proposal <br />
         		<a id="pl.155.8"></a><var>155.8</var>for expenditure of the funds to the committee. The funds held pursuant to this section may <br />
         		<a id="pl.155.9"></a><var>155.9</var>be released only for workforce development and associated public facility improvement, <br />
         		<a id="pl.155.10"></a><var>155.10</var>or for acquisition of plant and stationary mining equipment and facilities for the producer <br />
         		<a id="pl.155.11"></a><var>155.11</var>or for research and development in Minnesota on new mining, or taconite, iron, or steel <br />
         		<a id="pl.155.12"></a><var>155.12</var>production technology, but only if the producer provides a matching expenditure equal to <br />
         		<a id="pl.155.13"></a><var>155.13</var>the amount of the distribution to be used for the same purpose beginning with distributions <br />
         		<a id="pl.155.14"></a><var>155.14</var>in 2014. Effective for proposals for expenditures of money from the fund beginning May <br />
         		<a id="pl.155.15"></a><var>155.15</var>26, 2007, the commissioner may not release the funds before the next scheduled meeting <br />
         		<a id="pl.155.16"></a><var>155.16</var>of the board. If a proposed expenditure is not approved by the commissioner, after <br />
         		<a id="pl.155.17"></a><var>155.17</var>seeking a recommendation from the board, the funds must be deposited in the Taconite <br />
         		<a id="pl.155.18"></a><var>155.18</var>Environmental Protection Fund under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. If a producer uses <br />
         		<a id="pl.155.19"></a><var>155.19</var>money which has been released from the fund prior to May 26, 2007 to procure haulage <br />
         		<a id="pl.155.20"></a><var>155.20</var>trucks, mobile equipment, or mining shovels, and the producer removes the piece of <br />
         		<a id="pl.155.21"></a><var>155.21</var>equipment from the taconite tax relief area defined in section 
         <statute_ref>273.134</statute_ref> within ten years <br />
         		<a id="pl.155.22"></a><var>155.22</var>from the date of receipt of the money from the fund, a portion of the money granted <br />
         		<a id="pl.155.23"></a><var>155.23</var>from the fund must be repaid to the taconite economic development fund. The portion <br />
         		<a id="pl.155.24"></a><var>155.24</var>of the money to be repaid is 100 percent of the grant if the equipment is removed from <br />
         		<a id="pl.155.25"></a><var>155.25</var>the taconite tax relief area within 12 months after receipt of the money from the fund, <br />
         		<a id="pl.155.26"></a><var>155.26</var>declining by ten percent for each of the subsequent nine years during which the equipment <br />
         		<a id="pl.155.27"></a><var>155.27</var>remains within the taconite tax relief area. If a taconite production facility is sold after <br />
         		<a id="pl.155.28"></a><var>155.28</var>operations at the facility had ceased, any money remaining in the fund for the former <br />
         		<a id="pl.155.29"></a><var>155.29</var>producer may be released to the purchaser of the facility on the terms otherwise applicable <br />
         		<a id="pl.155.30"></a><var>155.30</var>to the former producer under this section. If a producer fails to provide matching funds <br />
         		<a id="pl.155.31"></a><var>155.31</var>for a proposed expenditure within six months after the commissioner approves release <br />
         		<a id="pl.155.32"></a><var>155.32</var>of the funds, the funds are available for release to another producer in proportion to the <br />
         		<a id="pl.155.33"></a><var>155.33</var>distribution provided and under the conditions of this section. Any portion of the fund <br />
         		<a id="pl.155.34"></a><var>155.34</var>which is not released by the commissioner within one year of its deposit in the fund shall <br />
         		<a id="pl.155.35"></a><var>155.35</var>be divided between the taconite environmental protection fund created in section 
         <statute_ref>298.223 <br />
            		
         </statute_ref><a id="pl.155.36"></a><var>155.36</var>and the Douglas J. Johnson economic protection trust fund created in section 
         <statute_ref>298.292</statute_ref> for <br />
         		<a id="pl.156.1"></a><var>156.1</var>placement in their respective special accounts. Two-thirds of the unreleased funds shall be <br />
         		<a id="pl.156.2"></a><var>156.2</var>distributed to the taconite environmental protection fund and one-third to the Douglas J. <br />
         		<a id="pl.156.3"></a><var>156.3</var>Johnson economic protection trust fund.<br />
         		<a id="pl.156.4"></a><var>156.4</var>&#160;&#160;&#160;&#160;(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of <br />
         		<a id="pl.156.5"></a><var>156.5</var>distributions and the review process, an amount equal to ten cents per taxable ton of <br />
         		<a id="pl.156.6"></a><var>156.6</var>production in 2007, for distribution in 2008 only, that would otherwise be distributed under <br />
         		<a id="pl.156.7"></a><var>156.7</var>paragraph (a), may be used for a loan or grant for the cost of providing for a value-added <br />
         		<a id="pl.156.8"></a><var>156.8</var>wood product facility located in the taconite tax relief area and in a county that contains a <br />
         		<a id="pl.156.9"></a><var>156.9</var>city of the first class. This amount must be deducted from the distribution under paragraph <br />
         		<a id="pl.156.10"></a><var>156.10</var>(a) for which a matching expenditure by the producer is not required. The granting of the <br />
         		<a id="pl.156.11"></a><var>156.11</var>loan or grant is subject to approval by the commissioner, after seeking a recommendation <br />
         		<a id="pl.156.12"></a><var>156.12</var>from the board. If the money is provided as a loan, interest must be payable on the loan at <br />
         		<a id="pl.156.13"></a><var>156.13</var>the rate prescribed in section 
         <statute_ref>298.2213, subdivision 3</statute_ref>. (ii) Repayments of the loan and <br />
         		<a id="pl.156.14"></a><var>156.14</var>interest, if any, must be deposited in the taconite environment protection fund under <br />
         		<a id="pl.156.15"></a><var>156.15</var>sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. If a loan or grant is not made under this paragraph by July 1, <br />
         		<a id="pl.156.16"></a><var>156.16</var>2012, the amount that had been made available for the loan under this paragraph must be <br />
         		<a id="pl.156.17"></a><var>156.17</var>transferred to the taconite environment protection fund under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. <br />
         		<a id="pl.156.18"></a><var>156.18</var>(iii) Money distributed in 2008 to the fund established under this section that exceeds ten <br />
         		<a id="pl.156.19"></a><var>156.19</var>cents per ton is available to qualifying producers under paragraph (a) on a pro rata basis.<br />
         		<a id="pl.156.20"></a><var>156.20</var>(c) Repayment or transfer of money to the taconite environmental protection fund <br />
         		<a id="pl.156.21"></a><var>156.21</var>under paragraph (b), item (ii), must be allocated by the commissioner of Iron Range <br />
         		<a id="pl.156.22"></a><var>156.22</var>resources and rehabilitation, after seeking a recommendation from the Iron Range <br />
         		<a id="pl.156.23"></a><var>156.23</var>Resources and Rehabilitation Board for public works projects in house legislative districts <br />
         		<a id="pl.156.24"></a><var>156.24</var>in the same proportion as taxable tonnage of production in 2007 in each house legislative <br />
         		<a id="pl.156.25"></a><var>156.25</var>district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for <br />
         		<a id="pl.156.26"></a><var>156.26</var>distribution in 2008. Notwithstanding any other law to the contrary, expenditures under <br />
         		<a id="pl.156.27"></a><var>156.27</var>this paragraph do not require approval by the governor. For purposes of this paragraph, <br />
         		<a id="pl.156.28"></a><var>156.28</var>"house legislative districts" means the legislative districts in existence on May 15, 2009.<br />
         		<br />
         		<a id="bill.9.23.0"></a><a id="pl.156.29"></a><var>156.29</var>&#160;&#160;&#160;&#160;Sec. 23. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:<br />
         		<a id="pl.156.30"></a><var>156.30</var>&#160;&#160;&#160;&#160;Subd. 7a. <b>Iron Range school consolidation and cooperatively operated school </b><br />
         		<a id="pl.156.31"></a><var>156.31</var><b>account.</b> The following amounts must be allocated to the Iron Range Resources and <br />
         		<a id="pl.156.32"></a><var>156.32</var>Rehabilitation Board to be deposited in the Iron Range school consolidation and <br />
         		<a id="pl.156.33"></a><var>156.33</var>cooperatively operated school account that is hereby created:<br />
         		<a id="pl.157.1"></a><var>157.1</var>(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax <br />
         		<a id="pl.157.2"></a><var>157.2</var>imposed under section 
         <statute_ref>298.24</statute_ref>; and (ii) for distributions beginning in 2024, five cents per <br />
         		<a id="pl.157.3"></a><var>157.3</var>taxable ton of the tax imposed under section 
         <statute_ref>298.24</statute_ref>;<br />
         		<a id="pl.157.4"></a><var>157.4</var>(2) the amount as determined under section 
         <statute_ref>298.17</statute_ref>, paragraph (b), clause (3);<br />
         		<a id="pl.157.5"></a><var>157.5</var>(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax <br />
         		<a id="pl.157.6"></a><var>157.6</var>proceeds attributable to the increase in the implicit price deflator as provided in section <br />
         		
         <statute_ref><a id="pl.157.7"></a><var>157.7</var>298.24, subdivision 1
         </statute_ref>, with the remaining one-third to be distributed to the Douglas J. <br />
         		<a id="pl.157.8"></a><var>157.8</var>Johnson economic protection trust fund;<br />
         		<a id="pl.157.9"></a><var>157.9</var>(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the <br />
         		<a id="pl.157.10"></a><var>157.10</var>increased tax proceeds attributable to the increase in the implicit price deflator as provided <br />
         		<a id="pl.157.11"></a><var>157.11</var>in section 
         <statute_ref>298.24, subdivision 1</statute_ref>, for distribution years 2015 and 2016, with the remaining <br />
         		<a id="pl.157.12"></a><var>157.12</var>one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and<br />
         		<a id="pl.157.13"></a><var>157.13</var>(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the <br />
         		<a id="pl.157.14"></a><var>157.14</var>increased tax proceeds attributable to the increase in the implicit price deflator as provided <br />
         		<a id="pl.157.15"></a><var>157.15</var>in section 
         <statute_ref>298.24, subdivision 1</statute_ref>, for distribution years 2015, 2016, and 2017, with the <br />
         		<a id="pl.157.16"></a><var>157.16</var>remaining one-third to be distributed to the Douglas J. Johnson economic protection <br />
         		<a id="pl.157.17"></a><var>157.17</var>trust fund; and<br />
         		<a id="pl.157.18"></a><var>157.18</var>(4) any other amount as provided by law.<br />
         		<a id="pl.157.19"></a><var>157.19</var>Expenditures from this account may be approved as ongoing annual expenditures <br />
         		<a id="pl.157.20"></a><var>157.20</var>and shall be made only to provide disbursements to assist school districts with the <br />
         		<a id="pl.157.21"></a><var>157.21</var>payment of bonds that were issued for qualified school projects, or for any other school <br />
         		<a id="pl.157.22"></a><var>157.22</var>disbursement as approved by the commissioner of Iron Range resources and rehabilitation <br />
         		<a id="pl.157.23"></a><var>157.23</var>after the commissioner of Iron Range resources and rehabilitation has sought review of the <br />
         		<a id="pl.157.24"></a><var>157.24</var>expenditures by the Iron Range Resources and Rehabilitation Board. For purposes of this <br />
         		<a id="pl.157.25"></a><var>157.25</var>section, "qualified school projects" means school projects within the taconite assistance <br />
         		<a id="pl.157.26"></a><var>157.26</var>area as defined in section 
         <statute_ref>273.1341</statute_ref>, that were (1) approved, by referendum, after April 3, <br />
         		<a id="pl.157.27"></a><var>157.27</var>2006; and (2) approved by the commissioner of education pursuant to section 
         <statute_ref>123B.71</statute_ref>.<br />
         		<a id="pl.157.28"></a><var>157.28</var>Beginning in fiscal year 2019, the disbursement to school districts for payments for <br />
         		<a id="pl.157.29"></a><var>157.29</var>bonds issued under section 
         <statute_ref>123A.482</statute_ref>, subdivision 9, must be increased each year to <br />
         		<a id="pl.157.30"></a><var>157.30</var>offset any reduction in debt service equalization aid that the school district qualifies for in <br />
         		<a id="pl.157.31"></a><var>157.31</var>that year, under section 
         <statute_ref>123B.53, subdivision 6</statute_ref>, compared with the amount the school <br />
         		<a id="pl.157.32"></a><var>157.32</var>district qualified for in fiscal year 2018.<br />
         		<a id="pl.157.33"></a><var>157.33</var>No expenditure under this section shall be made unless approved by seven members <br />
         		<a id="pl.157.34"></a><var>157.34</var>of the commissioner of Iron Range resources and rehabilitation after seeking review of the <br />
         		<a id="pl.157.35"></a><var>157.35</var>expenditure from the Iron Range Resources and Rehabilitation Board.<br />
         		<br />
         		<a id="bill.9.24.0"></a><a id="pl.158.1"></a><var>158.1</var>&#160;&#160;&#160;&#160;Sec. 24. Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read:<br />
         		<a id="pl.158.2"></a><var>158.2</var>&#160;&#160;&#160;&#160;Subd. 9d. <b>Iron Range higher education account.</b> Five cents per taxable ton must <br />
         		<a id="pl.158.3"></a><var>158.3</var>be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in <br />
         		<a id="pl.158.4"></a><var>158.4</var>an Iron Range higher education account that is hereby created, to be used for higher <br />
         		<a id="pl.158.5"></a><var>158.5</var>education programs conducted at educational institutions in the taconite assistance area <br />
         		<a id="pl.158.6"></a><var>158.6</var>defined in section 
         <statute_ref>273.1341</statute_ref>. The Iron Range Higher Education committee under section <br />
         		
         <statute_ref><a id="pl.158.7"></a><var>158.7</var>298.2214,
         </statute_ref> and the Iron Range Resources and Rehabilitation Board commissioner of Iron <br />
         		<a id="pl.158.8"></a><var>158.8</var>Range resources and rehabilitation must approve all expenditures from the account, after <br />
         		<a id="pl.158.9"></a><var>158.9</var>seeking review and recommendation of the expenditures from the Iron Range Resources <br />
         		<a id="pl.158.10"></a><var>158.10</var>and Rehabilitation Board.<br />
         		<br />
         		<a id="bill.9.25.0"></a><a id="pl.158.11"></a><var>158.11</var>&#160;&#160;&#160;&#160;Sec. 25. Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read:<br />
         		<a id="pl.158.12"></a><var>158.12</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Use of money.</b> Money in the Douglas J. Johnson economic protection trust <br />
         		<a id="pl.158.13"></a><var>158.13</var>fund may be used for the following purposes:<br />
         		<a id="pl.158.14"></a><var>158.14</var>&#160;&#160;&#160;&#160;(1) to provide loans, loan guarantees, interest buy-downs and other forms of <br />
         		<a id="pl.158.15"></a><var>158.15</var>participation with private sources of financing, but a loan to a private enterprise shall be <br />
         		<a id="pl.158.16"></a><var>158.16</var>for a principal amount not to exceed one-half of the cost of the project for which financing <br />
         		<a id="pl.158.17"></a><var>158.17</var>is sought, and the rate of interest on a loan to a private enterprise shall be no less than the <br />
         		<a id="pl.158.18"></a><var>158.18</var>lesser of eight percent or an interest rate three percentage points less than a full faith <br />
         		<a id="pl.158.19"></a><var>158.19</var>and credit obligation of the United States government of comparable maturity, at the <br />
         		<a id="pl.158.20"></a><var>158.20</var>time that the loan is approved;<br />
         		<a id="pl.158.21"></a><var>158.21</var>&#160;&#160;&#160;&#160;(2) to fund reserve accounts established to secure the payment when due of the <br />
         		<a id="pl.158.22"></a><var>158.22</var>principal of and interest on bonds issued pursuant to section 
         <statute_ref>298.2211</statute_ref>;<br />
         		<a id="pl.158.23"></a><var>158.23</var>&#160;&#160;&#160;&#160;(3) to pay in periodic payments or in a lump-sum payment any or all of the interest <br />
         		<a id="pl.158.24"></a><var>158.24</var>on bonds issued pursuant to chapter 474 for the purpose of constructing, converting, <br />
         		<a id="pl.158.25"></a><var>158.25</var>or retrofitting heating facilities in connection with district heating systems or systems <br />
         		<a id="pl.158.26"></a><var>158.26</var>utilizing alternative energy sources;<br />
         		<a id="pl.158.27"></a><var>158.27</var>&#160;&#160;&#160;&#160;(4) to invest in a venture capital fund or enterprise that will provide capital to other <br />
         		<a id="pl.158.28"></a><var>158.28</var>entities that are engaging in, or that will engage in, projects or programs that have the <br />
         		<a id="pl.158.29"></a><var>158.29</var>purposes set forth in subdivision 1. No investments may be made in a venture capital fund <br />
         		<a id="pl.158.30"></a><var>158.30</var>or enterprise unless at least two other unrelated investors make investments of at least <br />
         		<a id="pl.158.31"></a><var>158.31</var>$500,000 in the venture capital fund or enterprise, and the investment by the Douglas <br />
         		<a id="pl.158.32"></a><var>158.32</var>J. Johnson economic protection trust fund may not exceed the amount of the largest <br />
         		<a id="pl.158.33"></a><var>158.33</var>investment by an unrelated investor in the venture capital fund or enterprise. For purposes <br />
         		<a id="pl.158.34"></a><var>158.34</var>of this subdivision, an "unrelated investor" is a person or entity that is not related to <br />
         		<a id="pl.158.35"></a><var>158.35</var>the entity in which the investment is made or to any individual who owns more than 40 <br />
         		<a id="pl.159.1"></a><var>159.1</var>percent of the value of the entity, in any of the following relationships: spouse, parent, <br />
         		<a id="pl.159.2"></a><var>159.2</var>child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of <br />
         		<a id="pl.159.3"></a><var>159.3</var>the value of all interests in it. For purposes of determining the limitations under this <br />
         		<a id="pl.159.4"></a><var>159.4</var>clause, the amount of investments made by an investor other than the Douglas J. Johnson <br />
         		<a id="pl.159.5"></a><var>159.5</var>economic protection trust fund is the sum of all investments made in the venture capital <br />
         		<a id="pl.159.6"></a><var>159.6</var>fund or enterprise during the period beginning one year before the date of the investment <br />
         		<a id="pl.159.7"></a><var>159.7</var>by the Douglas J. Johnson economic protection trust fund; and<br />
         		<a id="pl.159.8"></a><var>159.8</var>&#160;&#160;&#160;&#160;(5) to purchase forest land in the taconite assistance area defined in section 
         <statute_ref>273.1341 <br />
            		
         </statute_ref><a id="pl.159.9"></a><var>159.9</var>to be held and managed as a public trust for the benefit of the area for the purposes <br />
         		<a id="pl.159.10"></a><var>159.10</var>authorized in section 
         <statute_ref>298.22, subdivision 5a</statute_ref>. Property purchased under this section may <br />
         		<a id="pl.159.11"></a><var>159.11</var>be sold by the commissioner upon approval by after seeking a recommendation from <br />
         		<a id="pl.159.12"></a><var>159.12</var>the board. The net proceeds must be deposited in the trust fund for the purposes and <br />
         		<a id="pl.159.13"></a><var>159.13</var>uses of this section.<br />
         		<a id="pl.159.14"></a><var>159.14</var>&#160;&#160;&#160;&#160;Money from the trust fund shall be expended only in or for the benefit of the taconite <br />
         		<a id="pl.159.15"></a><var>159.15</var>assistance area defined in section 
         <statute_ref>273.1341</statute_ref>.<br />
         		<br />
         		<a id="bill.9.26.0"></a><a id="pl.159.16"></a><var>159.16</var>&#160;&#160;&#160;&#160;Sec. 26. Minnesota Statutes 2014, section 298.294, is amended to read:<br />
         		<a id="pl.159.17"></a><var>159.17</var><b>298.294 INVESTMENT OF FUND.</b><br />
         		<a id="pl.159.18"></a><var>159.18</var>(a) The trust fund established by section 
         <statute_ref>298.292</statute_ref> shall be invested pursuant to law <br />
         		<a id="pl.159.19"></a><var>159.19</var>by the State Board of Investment and the net interest, dividends, and other earnings arising <br />
         		<a id="pl.159.20"></a><var>159.20</var>from the investments shall be transferred, except as provided in paragraph (b), on the first <br />
         		<a id="pl.159.21"></a><var>159.21</var>day of each month to the trust and shall be included and become part of the trust fund. <br />
         		<a id="pl.159.22"></a><var>159.22</var>The amounts transferred, including the interest, dividends, and other earnings earned <br />
         		<a id="pl.159.23"></a><var>159.23</var>prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year <br />
         		<a id="pl.159.24"></a><var>159.24</var>1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the <br />
         		<a id="pl.159.25"></a><var>159.25</var>commissioner of Iron Range resources and rehabilitation for deposit in a separate account <br />
         		<a id="pl.159.26"></a><var>159.26</var>for expenditure for the purposes set forth in section 
         <statute_ref>298.292</statute_ref>. Amounts appropriated <br />
         		<a id="pl.159.27"></a><var>159.27</var>pursuant to this section shall not cancel but shall remain available unless expended.<br />
         		<a id="pl.159.28"></a><var>159.28</var>(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends, <br />
         		<a id="pl.159.29"></a><var>159.29</var>and other earnings under paragraph (a) shall be transferred to a special account. Funds <br />
         		<a id="pl.159.30"></a><var>159.30</var>in the special account are available for loans or grants to businesses, with priority given <br />
         		<a id="pl.159.31"></a><var>159.31</var>to businesses with 25 or fewer employees. Funds may be used for wage subsidies for <br />
         		<a id="pl.159.32"></a><var>159.32</var>up to 52 weeks of up to $5 per hour or other activities, including, but not limited to, <br />
         		<a id="pl.159.33"></a><var>159.33</var>short-term operating expenses and purchase of equipment and materials by businesses <br />
         		<a id="pl.159.34"></a><var>159.34</var>under financial duress, that will create additional jobs in the taconite assistance area <br />
         		<a id="pl.160.1"></a><var>160.1</var>under section 
         <statute_ref>273.1341</statute_ref>. Expenditures from the special account must be approved by the <br />
         		<a id="pl.160.2"></a><var>160.2</var>commissioner after seeking a recommendation from the board.<br />
         		<a id="pl.160.3"></a><var>160.3</var>(c) To qualify for a grant or loan, a business must be currently operating and have <br />
         		<a id="pl.160.4"></a><var>160.4</var>been operating for one year immediately prior to its application for a loan or grant, and its <br />
         		<a id="pl.160.5"></a><var>160.5</var>corporate headquarters must be located in the taconite assistance area.<br />
         		<br />
         		<a id="bill.9.27.0"></a><a id="pl.160.6"></a><var>160.6</var>&#160;&#160;&#160;&#160;Sec. 27. Minnesota Statutes 2014, section 298.296, subdivision 1, is amended to read:<br />
         		<a id="pl.160.7"></a><var>160.7</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Project approval.</b> (a) The commissioner of Iron Range resources and <br />
         		<a id="pl.160.8"></a><var>160.8</var>rehabilitation, after seeking a recommendation from the board and commissioner, shall by <br />
         		<a id="pl.160.9"></a><var>160.9</var>August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson <br />
         		<a id="pl.160.10"></a><var>160.10</var>economic protection trust with necessary supporting information including description of <br />
         		<a id="pl.160.11"></a><var>160.11</var>the projects, plans, and cost estimates. These projects shall be consistent with the priorities <br />
         		<a id="pl.160.12"></a><var>160.12</var>established in section 
         <statute_ref>298.292</statute_ref> and shall not be approved by the board commissioner <br />
         		<a id="pl.160.13"></a><var>160.13</var>unless it the commissioner, after seeking a recommendation from the board, finds that:<br />
         		<a id="pl.160.14"></a><var>160.14</var>(a) (1) the project will materially assist, directly or indirectly, the creation of <br />
         		<a id="pl.160.15"></a><var>160.15</var>additional long-term employment opportunities;<br />
         		<a id="pl.160.16"></a><var>160.16</var>(b) (2) the prospective benefits of the expenditure exceed the anticipated costs; and<br />
         		<a id="pl.160.17"></a><var>160.17</var>(c) (3) in the case of assistance to private enterprise, the project will serve a sound <br />
         		<a id="pl.160.18"></a><var>160.18</var>business purpose. <br />
         		<a id="pl.160.19"></a><var>160.19</var>(b) Each project must be approved by over one-half of all of the members of the <br />
         		<a id="pl.160.20"></a><var>160.20</var>board and the commissioner of Iron Range resources and rehabilitation after seeking a <br />
         		<a id="pl.160.21"></a><var>160.21</var>recommendation from the board for the project. The list of projects shall be submitted to <br />
         		<a id="pl.160.22"></a><var>160.22</var>the governor, who shall, by November 15 of each year, approve or disapprove, or return <br />
         		<a id="pl.160.23"></a><var>160.23</var>for further consideration, each project. The money for a project may be expended only <br />
         		<a id="pl.160.24"></a><var>160.24</var>upon approval of the project by the governor. The board commissioner may submit a <br />
         		<a id="pl.160.25"></a><var>160.25</var>supplemental projects project for approval at any time after seeking a recommendation for <br />
         		<a id="pl.160.26"></a><var>160.26</var>the project from the board.<br />
         		<br />
         		<a id="bill.9.28.0"></a><a id="pl.160.27"></a><var>160.27</var>&#160;&#160;&#160;&#160;Sec. 28. Minnesota Statutes 2014, section 298.296, subdivision 2, is amended to read:<br />
         		<a id="pl.160.28"></a><var>160.28</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Expenditure of funds.</b> (a) Before January 1, 2028, funds may be expended <br />
         		<a id="pl.160.29"></a><var>160.29</var>on projects and for administration of the trust fund only from the net interest, earnings, <br />
         		<a id="pl.160.30"></a><var>160.30</var>and dividends arising from the investment of the trust at any time, including net interest, <br />
         		<a id="pl.160.31"></a><var>160.31</var>earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made <br />
         		<a id="pl.160.32"></a><var>160.32</var>available for use in fiscal year 1983, except that any amount required to be paid out of the <br />
         		<a id="pl.160.33"></a><var>160.33</var>trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article <br />
         		<a id="pl.160.34"></a><var>160.34</var>X, section 4, and to make school bond payments and payments to recipients of taconite <br />
         		<a id="pl.161.1"></a><var>161.1</var>production tax proceeds pursuant to section 
         <statute_ref>298.225</statute_ref>, may be taken from the corpus of <br />
         		<a id="pl.161.2"></a><var>161.2</var>the trust.<br />
         		<a id="pl.161.3"></a><var>161.3</var>&#160;&#160;&#160;&#160;(b) Additionally, upon recommendation by the commissioner after seeking a <br />
         		<a id="pl.161.4"></a><var>161.4</var>recommendation from the board, up to $13,000,000 from the corpus of the trust may be <br />
         		<a id="pl.161.5"></a><var>161.5</var>made available for use as provided in subdivision 4, and up to $10,000,000 from the <br />
         		<a id="pl.161.6"></a><var>161.6</var>corpus of the trust may be made available for use as provided in section 
         <statute_ref>298.2961</statute_ref>.<br />
         		<a id="pl.161.7"></a><var>161.7</var>&#160;&#160;&#160;&#160;(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust <br />
         		<a id="pl.161.8"></a><var>161.8</var>on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts <br />
         		<a id="pl.161.9"></a><var>161.9</var>made available under section 
         <statute_ref>298.28, subdivision 4</statute_ref>, and Laws 2002, chapter 377, article <br />
         		<a id="pl.161.10"></a><var>161.10</var>8, section 17, may be expended on projects. Funds may be expended for projects under <br />
         		<a id="pl.161.11"></a><var>161.11</var>this paragraph only if the project:<br />
         		<a id="pl.161.12"></a><var>161.12</var>&#160;&#160;&#160;&#160;(1) is for the purposes established under section 
         <statute_ref>298.292, subdivision 1</statute_ref>, clause <br />
         		<a id="pl.161.13"></a><var>161.13</var>(1) or (2); and<br />
         		<a id="pl.161.14"></a><var>161.14</var>&#160;&#160;&#160;&#160;(2) is approved by two-thirds of all of the members of the commissioner after <br />
         		<a id="pl.161.15"></a><var>161.15</var>seeking a recommendation from the board.<br />
         		<a id="pl.161.16"></a><var>161.16</var>No money made available under this paragraph or paragraph (d) can be used for <br />
         		<a id="pl.161.17"></a><var>161.17</var>administrative or operating expenses of the Iron Range Resources and Rehabilitation Board <br />
         		<a id="pl.161.18"></a><var>161.18</var>or expenses relating to any facilities owned or operated by the board on May 18, 2002.<br />
         		<a id="pl.161.19"></a><var>161.19</var>&#160;&#160;&#160;&#160;(d) Upon recommendation by a unanimous vote of all members the commissioner <br />
         		<a id="pl.161.20"></a><var>161.20</var>after seeking a unanimous recommendation of the board, amounts in addition to those <br />
         		<a id="pl.161.21"></a><var>161.21</var>authorized under paragraphs (a), (b), and (c) may be expended on projects described in <br />
         		<a id="pl.161.22"></a><var>161.22</var>section 
         <statute_ref>298.292, subdivision 1</statute_ref>.<br />
         		<a id="pl.161.23"></a><var>161.23</var>&#160;&#160;&#160;&#160;(e) Annual administrative costs, not including detailed engineering expenses for the <br />
         		<a id="pl.161.24"></a><var>161.24</var>projects, shall not exceed five percent of the net interest, dividends, and earnings arising <br />
         		<a id="pl.161.25"></a><var>161.25</var>from the trust in the preceding fiscal year.<br />
         		<a id="pl.161.26"></a><var>161.26</var>&#160;&#160;&#160;&#160;(f) Principal and interest received in repayment of loans made pursuant to this <br />
         		<a id="pl.161.27"></a><var>161.27</var>section, and earnings on other investments made under section 
         <statute_ref>298.292, subdivision 2</statute_ref>, <br />
         		<a id="pl.161.28"></a><var>161.28</var>clause (4), shall be deposited in the state treasury and credited to the trust. These receipts <br />
         		<a id="pl.161.29"></a><var>161.29</var>are appropriated to the board for the purposes of sections 
         <statute_ref>298.291</statute_ref> to 
         <statute_ref>298.298</statute_ref>.<br />
         		<a id="pl.161.30"></a><var>161.30</var>&#160;&#160;&#160;&#160;(g) Additionally, notwithstanding section 
         <statute_ref>298.293</statute_ref>, upon the approval of the <br />
         		<a id="pl.161.31"></a><var>161.31</var>commissioner of Iron Range resources and rehabilitation, after seeking a recommendation <br />
         		<a id="pl.161.32"></a><var>161.32</var>from the board, money from the corpus of the trust may be expanded to purchase forest <br />
         		<a id="pl.161.33"></a><var>161.33</var>lands within the taconite assistance area as provided in sections 
         <statute_ref>298.22</statute_ref>, subdivision 5a, <br />
         		<a id="pl.161.34"></a><var>161.34</var>and 
         <statute_ref>298.292, subdivision 2</statute_ref>, clause (5).<br />
         		<br />
         		<a id="bill.9.29.0"></a><a id="pl.161.35"></a><var>161.35</var>&#160;&#160;&#160;&#160;Sec. 29. Minnesota Statutes 2014, section 298.296, subdivision 4, is amended to read:<br />
         		<a id="pl.162.1"></a><var>162.1</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Temporary loan authority.</b> (a) After seeking a recommendation from the <br />
         		<a id="pl.162.2"></a><var>162.2</var>board, the commissioner of Iron Range resources and rehabilitation  may recommend that <br />
         		<a id="pl.162.3"></a><var>162.3</var>use up to $7,500,000 from the corpus of the trust may be used for loans, loan guarantees, <br />
         		<a id="pl.162.4"></a><var>162.4</var>grants, or equity investments as provided in this subdivision. The money would be <br />
         		<a id="pl.162.5"></a><var>162.5</var>available for loans for construction and equipping of facilities constituting (1) a value <br />
         		<a id="pl.162.6"></a><var>162.6</var>added iron products plant, which may be either a new plant or a facility incorporated into <br />
         		<a id="pl.162.7"></a><var>162.7</var>an existing plant that produces iron upgraded to a minimum of 75 percent iron content or <br />
         		<a id="pl.162.8"></a><var>162.8</var>any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine <br />
         		<a id="pl.162.9"></a><var>162.9</var>or minerals processing plant for any mineral subject to the net proceeds tax imposed <br />
         		<a id="pl.162.10"></a><var>162.10</var>under section 
         <statute_ref>298.015</statute_ref>. A loan or loan guarantee under this paragraph may not exceed <br />
         		<a id="pl.162.11"></a><var>162.11</var>$5,000,000 for any facility.<br />
         		<a id="pl.162.12"></a><var>162.12</var>(b) Additionally, the board commissioner of Iron Range resources and rehabilitation <br />
         		<a id="pl.162.13"></a><var>162.13</var>must reserve the first $2,000,000 of the net interest, dividends, and earnings arising <br />
         		<a id="pl.162.14"></a><var>162.14</var>from the investment of the trust after June 30, 1996, to be used for grants, loans, loan <br />
         		<a id="pl.162.15"></a><var>162.15</var>guarantees, or equity investments for the purposes set forth in paragraph (a). This amount <br />
         		<a id="pl.162.16"></a><var>162.16</var>must be reserved until it is used as described in this subdivision.<br />
         		<a id="pl.162.17"></a><var>162.17</var>(c) Additionally, the board commissioner may recommend that up to $5,500,000 <br />
         		<a id="pl.162.18"></a><var>162.18</var>from the corpus of the trust may be used for additional grants, loans, loan guarantees, or <br />
         		<a id="pl.162.19"></a><var>162.19</var>equity investments for the purposes set forth in paragraph (a).<br />
         		<a id="pl.162.20"></a><var>162.20</var>(d) The commissioner of Iron Range resources and rehabilitation, after seeking a <br />
         		<a id="pl.162.21"></a><var>162.21</var>recommendation from the board, may require that it the board receive an equity percentage <br />
         		<a id="pl.162.22"></a><var>162.22</var>in any project to which it contributes under this section.<br />
         		<br />
         		<a id="bill.9.30.0"></a><a id="pl.162.23"></a><var>162.23</var>&#160;&#160;&#160;&#160;Sec. 30. Minnesota Statutes 2014, section 298.2961, subdivision 2, is amended to read:<br />
         		<a id="pl.162.24"></a><var>162.24</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Projects; approval.</b> (a) Projects funded must be for:<br />
         		<a id="pl.162.25"></a><var>162.25</var>&#160;&#160;&#160;&#160;(1) environmentally unique reclamation projects; or<br />
         		<a id="pl.162.26"></a><var>162.26</var>&#160;&#160;&#160;&#160;(2) pit or plant repairs, expansions, or modernizations other than for a value added <br />
         		<a id="pl.162.27"></a><var>162.27</var>iron products plant.<br />
         		<a id="pl.162.28"></a><var>162.28</var>&#160;&#160;&#160;&#160;(b) To be proposed by the board, a project must be approved by Before the <br />
         		<a id="pl.162.29"></a><var>162.29</var>commissioner may propose a project, the commissioner must seek a recommendation <br />
         		<a id="pl.162.30"></a><var>162.30</var>from the board. The money for a project may be spent only upon approval of the project <br />
         		<a id="pl.162.31"></a><var>162.31</var>by the governor. The board commissioner may submit a supplemental projects project for <br />
         		<a id="pl.162.32"></a><var>162.32</var>approval at any time after seeking a recommendation for the project from the board.<br />
         		<a id="pl.162.33"></a><var>162.33</var>&#160;&#160;&#160;&#160;(c) The board commissioner may require that it the board receive an equity <br />
         		<a id="pl.162.34"></a><var>162.34</var>percentage in any project to which it contributes under this section.<br />
         		<br />
         		<a id="bill.9.31.0"></a><a id="pl.163.1"></a><var>163.1</var>&#160;&#160;&#160;&#160;Sec. 31. Minnesota Statutes 2014, section 298.2961, subdivision 4, is amended to read:<br />
         		<a id="pl.163.2"></a><var>163.2</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Grant and loan fund.</b> (a) A fund is established to receive distributions <br />
         		<a id="pl.163.3"></a><var>163.3</var>under section 
         <statute_ref>298.28, subdivision 9b</statute_ref>, and to make grants or loans as provided in this <br />
         		<a id="pl.163.4"></a><var>163.4</var>subdivision. Any grant or loan made under this subdivision must first be approved by <br />
         		<a id="pl.163.5"></a><var>163.5</var>the commissioner after seeking a recommendation from the board, established under <br />
         		<a id="pl.163.6"></a><var>163.6</var>section 
         <statute_ref>298.22</statute_ref>.<br />
         		<a id="pl.163.7"></a><var>163.7</var>&#160;&#160;&#160;&#160;(b) Distributions received in calendar year 2005 are allocated to the city of Virginia <br />
         		<a id="pl.163.8"></a><var>163.8</var>for improvements and repairs to the city's steam heating system.<br />
         		<a id="pl.163.9"></a><var>163.9</var>&#160;&#160;&#160;&#160;(c) Distributions received in calendar year 2006 are allocated to a project of the <br />
         		<a id="pl.163.10"></a><var>163.10</var>public utilities commissions of the cities of Hibbing and Virginia to convert their electrical <br />
         		<a id="pl.163.11"></a><var>163.11</var>generating plants to the use of biomass products, such as wood.<br />
         		<a id="pl.163.12"></a><var>163.12</var>&#160;&#160;&#160;&#160;(d) Distributions received in calendar year 2007 must be paid to the city of Tower to <br />
         		<a id="pl.163.13"></a><var>163.13</var>be used for the East Two Rivers project in or near the city of Tower.<br />
         		<a id="pl.163.14"></a><var>163.14</var>&#160;&#160;&#160;&#160;(e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution <br />
         		<a id="pl.163.15"></a><var>163.15</var>must be paid to St. Louis County for deposit in its county road and bridge fund to be <br />
         		<a id="pl.163.16"></a><var>163.16</var>used for relocation of St. Louis County Road 715, commonly referred to as Pike River <br />
         		<a id="pl.163.17"></a><var>163.17</var>Road. The remainder of the 2008 distribution must be paid to St. Louis County for a <br />
         		<a id="pl.163.18"></a><var>163.18</var>grant to the city of Virginia for connecting sewer and water lines to the St. Louis County <br />
         		<a id="pl.163.19"></a><var>163.19</var>maintenance garage on Highway 135, further extending the lines to interconnect with the <br />
         		<a id="pl.163.20"></a><var>163.20</var>city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent <br />
         		<a id="pl.163.21"></a><var>163.21</var>years are allocated for projects under section 
         <statute_ref>298.223</statute_ref>, subdivision 1.<br />
         		<br />
         		<a id="bill.9.32.0"></a><a id="pl.163.22"></a><var>163.22</var>&#160;&#160;&#160;&#160;Sec. 32. Minnesota Statutes 2014, section 298.298, is amended to read:<br />
         		<a id="pl.163.23"></a><var>163.23</var><b>298.298 LONG-RANGE PLAN.</b><br />
         		<a id="pl.163.24"></a><var>163.24</var>Consistent with the policy established in sections 
         <statute_ref>298.291</statute_ref> to 
         <statute_ref>298.298</statute_ref>, the Iron <br />
         		<a id="pl.163.25"></a><var>163.25</var>Range Resources and Rehabilitation Board shall prepare and present to the governor and <br />
         		<a id="pl.163.26"></a><var>163.26</var>the legislature by December 31, 2006, a long-range plan for the use of the Douglas J. <br />
         		<a id="pl.163.27"></a><var>163.27</var>Johnson economic protection trust fund for the economic development and diversification <br />
         		<a id="pl.163.28"></a><var>163.28</var>of the taconite assistance area defined in section 
         <statute_ref>273.1341</statute_ref>. No project shall be approved <br />
         		<a id="pl.163.29"></a><var>163.29</var>recommended by the Iron Range Resources and Rehabilitation Board which if the board <br />
         		<a id="pl.163.30"></a><var>163.30</var>finds that the project is not consistent with the goals and objectives established in the <br />
         		<a id="pl.163.31"></a><var>163.31</var>long-range plan.<br />
         		<br />
         		<a id="bill.9.33.0"></a><a id="pl.163.32"></a><var>163.32</var>&#160;&#160;&#160;&#160;Sec. 33. Minnesota Statutes 2014, section 298.46, subdivision 2, is amended to read:<br />
         		<a id="pl.163.33"></a><var>163.33</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Unmined iron ore; valuation petition.</b> When in the opinion of the duly <br />
         		<a id="pl.163.34"></a><var>163.34</var>constituted authorities of a taxing district there are in existence reserves of unmined iron <br />
         		<a id="pl.164.1"></a><var>164.1</var>ore located in such district, these authorities may petition the commissioner of Iron Range <br />
         		<a id="pl.164.2"></a><var>164.2</var>resources and rehabilitation Board for authority to petition the county assessor to verify <br />
         		<a id="pl.164.3"></a><var>164.3</var>the existence of such reserves and to ascertain the value thereof by drilling in a manner <br />
         		<a id="pl.164.4"></a><var>164.4</var>consistent with established engineering and geological exploration methods, in order that <br />
         		<a id="pl.164.5"></a><var>164.5</var>such taxing district may be able to forecast in a proper manner its future economic and <br />
         		<a id="pl.164.6"></a><var>164.6</var>fiscal potentials. The commissioner of Iron Range resources and rehabilitation may grant <br />
         		<a id="pl.164.7"></a><var>164.7</var>the authority to petition after seeking a recommendation from the Iron Range Resources <br />
         		<a id="pl.164.8"></a><var>164.8</var>and Rehabilitation Board.<br />
         		<br />
         		<a id="bill.9.34.0"></a><a id="pl.164.9"></a><var>164.9</var>&#160;&#160;&#160;&#160;Sec. 34. <b>IRON RANGE RESOURCES AND REHABILITATION BOARD; </b><br />
         		<a id="pl.164.10"></a><var>164.10</var><b>EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION.</b><br />
         		<a id="pl.164.11"></a><var>164.11</var>(a) "Commissioner" as used in this section means the commissioner of the Iron <br />
         		<a id="pl.164.12"></a><var>164.12</var>Range Resources and Rehabilitation Board unless otherwise specified.<br />
         		<a id="pl.164.13"></a><var>164.13</var>(b) Notwithstanding any law to the contrary, the commissioner, in consultation <br />
         		<a id="pl.164.14"></a><var>164.14</var>with the commissioner of management and budget, shall offer a targeted early separation <br />
         		<a id="pl.164.15"></a><var>164.15</var>incentive program for employees of the commissioner who have attained the age of 60 <br />
         		<a id="pl.164.16"></a><var>164.16</var>years or who have received credit for at least 30 years of allowable service under the <br />
         		<a id="pl.164.17"></a><var>164.17</var>provisions of Minnesota Statutes, chapter 352.  The commissioner shall also offer a <br />
         		<a id="pl.164.18"></a><var>164.18</var>targeted separation incentive program for employees of the commissioner whose positions <br />
         		<a id="pl.164.19"></a><var>164.19</var>are in support of operations at Giants Ridge and will be eliminated if the agency no longer <br />
         		<a id="pl.164.20"></a><var>164.20</var>directly manages Giants Ridge operations.<br />
         		<a id="pl.164.21"></a><var>164.21</var>(c) The early separation incentive program may include one or more of the following:<br />
         		<a id="pl.164.22"></a><var>164.22</var>(1) employer-paid postseparation health, medical, and dental insurance until age <br />
         		<a id="pl.164.23"></a><var>164.23</var>65; and<br />
         		<a id="pl.164.24"></a><var>164.24</var>(2) cash incentives that may, but are not required to be, used to purchase additional <br />
         		<a id="pl.164.25"></a><var>164.25</var>years of service credit through the Minnesota State Retirement System, to the extent that <br />
         		<a id="pl.164.26"></a><var>164.26</var>the purchases are otherwise authorized by law.<br />
         		<a id="pl.164.27"></a><var>164.27</var>(d) The commissioner shall establish eligibility requirements for employees to <br />
         		<a id="pl.164.28"></a><var>164.28</var>receive an incentive.<br />
         		<a id="pl.164.29"></a><var>164.29</var>(e) The commissioner, consistent with the established program provisions under <br />
         		<a id="pl.164.30"></a><var>164.30</var>paragraph (b), and with the eligibility requirements under paragraph (f), may designate <br />
         		<a id="pl.164.31"></a><var>164.31</var>specific programs or employees as eligible to be offered the incentive program.<br />
         		<a id="pl.164.32"></a><var>164.32</var>(f) Acceptance of the offered incentive must be voluntary on the part of the <br />
         		<a id="pl.164.33"></a><var>164.33</var>employee and must be in writing. The incentive may only be offered at the sole discretion <br />
         		<a id="pl.164.34"></a><var>164.34</var>of the commissioner.<br />
         		<a id="pl.165.1"></a><var>165.1</var>(g) The cost of the incentive is payable solely by funds made available to the <br />
         		<a id="pl.165.2"></a><var>165.2</var>commissioner by law, but only on prior approval of the expenditures by the commissioner, <br />
         		<a id="pl.165.3"></a><var>165.3</var>after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.<br />
         		<a id="pl.165.4"></a><var>165.4</var>(h) Unilateral implementation of this section by the commissioner is not an unfair <br />
         		<a id="pl.165.5"></a><var>165.5</var>labor practice under Minnesota Statutes, chapter 179A.<br />
         		<a id="pl.165.6"></a><var>165.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment. <br />
         		<a id="pl.165.7"></a><var>165.7</var>This section is repealed June 30, 2017.<br />
         		<br />
         		<a id="bill.9.35.0"></a><a id="pl.165.8"></a><var>165.8</var>&#160;&#160;&#160;&#160;Sec. 35. <b>REVISOR'S INSTRUCTION.</b><br />
         		<a id="pl.165.9"></a><var>165.9</var>The revisor of statutes shall identify and propose necessary changes to Minnesota <br />
         		<a id="pl.165.10"></a><var>165.10</var>Statutes and Minnesota Rules that are consistent with the goals of this act to (i) transfer <br />
         		<a id="pl.165.11"></a><var>165.11</var>discretionary approval authority for all expenditures and projects from the Iron Range <br />
         		<a id="pl.165.12"></a><var>165.12</var>Resources and Rehabilitation Board to the commissioner of Iron Range resources and <br />
         		<a id="pl.165.13"></a><var>165.13</var>rehabilitation, and (ii) provide that the commissioner must, in good faith, seek the review <br />
         		<a id="pl.165.14"></a><var>165.14</var>and recommendation of the board, as required, before exercising approval authority. The <br />
         		<a id="pl.165.15"></a><var>165.15</var>revisor shall submit the proposal, in a form ready for introduction, during the 2017 regular <br />
         		<a id="pl.165.16"></a><var>165.16</var>legislative session to the chairs and ranking minority members of the senate and house of <br />
         		<a id="pl.165.17"></a><var>165.17</var>representatives committees with jurisdiction over taxes.<br />
         		<br />
         		<a id="bill.10.0.0"></a><div class="xtend_ce"><a id="pl.165.18"></a><var>165.18</var><b>ARTICLE 10</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.165.19"></a><var>165.19</var><b>SUSTAINABLE FOREST INCENTIVE ACT MODIFICATIONS</b><br />
            		
         </div><br />
         		<a id="bill.10.1.0"></a><a id="pl.165.20"></a><var>165.20</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2014, section 290C.01, is amended to read:<br />
         		<a id="pl.165.21"></a><var>165.21</var><b>290C.01 PURPOSE.</b><br />
         		<a id="pl.165.22"></a><var>165.22</var>It is the policy of this state to promote sustainable forest resource management on <br />
         		<a id="pl.165.23"></a><var>165.23</var>the state's public and private lands. Recognizing that The state's private forests comprise <br />
         		<a id="pl.165.24"></a><var>165.24</var>approximately one-half of the state forest land resources, that healthy and robust forest <br />
         		<a id="pl.165.25"></a><var>165.25</var>land provides significant benefits to the state of Minnesota, and that ad. These forests <br />
         		<a id="pl.165.26"></a><var>165.26</var>play a critical role in protecting water quality and soil resources, and provide extensive <br />
         		<a id="pl.165.27"></a><var>165.27</var>wildlife habitat, diverse recreational experiences, and significant forest products that <br />
         		<a id="pl.165.28"></a><var>165.28</var>support the state's economy. Ad valorem property taxes represent a significant annual <br />
         		<a id="pl.165.29"></a><var>165.29</var>cost that can discourage long-term forest management investments. In order to foster <br />
         		<a id="pl.165.30"></a><var>165.30</var>silviculture investments and retain these forests for their economic and ecological benefits, <br />
         		<a id="pl.165.31"></a><var>165.31</var>this chapter, hereafter referred to as the "Sustainable Forest Incentive Act," is enacted <br />
         		<a id="pl.165.32"></a><var>165.32</var>to encourage the state's private forest landowners to make a long-term commitment to <br />
         		<a id="pl.165.33"></a><var>165.33</var>sustainable forest management.<br />
         		<br />
         		<a id="bill.10.2.0"></a><a id="pl.166.1"></a><var>166.1</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 290C.02, subdivision 1, is amended to read:<br />
         		<a id="pl.166.2"></a><var>166.2</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Application.</b> When used in sections 
         <statute_ref>290C.01</statute_ref> to 
         <statute_ref>290C.11</statute_ref> 290C.13, <br />
         		<a id="pl.166.3"></a><var>166.3</var>the terms in this section have the meanings given them.<br />
         		<a id="pl.166.4"></a><var>166.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.3.0"></a><a id="pl.166.5"></a><var>166.5</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 290C.02, subdivision 3, is amended to read:<br />
         		<a id="pl.166.6"></a><var>166.6</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Claimant.</b> (a) "Claimant" means:<br />
         		<a id="pl.166.7"></a><var>166.7</var>&#160;&#160;&#160;&#160;(1) a person, as that term is defined in section 
         <statute_ref>290.01, subdivision 2</statute_ref>, who owns <br />
         		<a id="pl.166.8"></a><var>166.8</var>forest land in Minnesota and files an application authorized by the Sustainable Forest <br />
         		<a id="pl.166.9"></a><var>166.9</var>Incentive Act;<br />
         		<a id="pl.166.10"></a><var>166.10</var>&#160;&#160;&#160;&#160;(2) a purchaser or grantee if property enrolled in the program was sold or transferred <br />
         		<a id="pl.166.11"></a><var>166.11</var>after the original application was filed and prior to the annual incentive payment being <br />
         		<a id="pl.166.12"></a><var>166.12</var>made; or<br />
         		<a id="pl.166.13"></a><var>166.13</var>&#160;&#160;&#160;&#160;(3) an owner of land previously covered by an auxiliary forest contract that <br />
         		<a id="pl.166.14"></a><var>166.14</var>automatically qualifies for inclusion in the Sustainable Forest Incentive Act program <br />
         		<a id="pl.166.15"></a><var>166.15</var>pursuant to section 
         <statute_ref>88.49, subdivision 9a</statute_ref>, or 
         <statute_ref>88.491, subdivision 2</statute_ref>. <br />
         		<a id="pl.166.16"></a><var>166.16</var>&#160;&#160;&#160;&#160;The purchaser or grantee must notify the commissioner in writing of the sale or <br />
         		<a id="pl.166.17"></a><var>166.17</var>transfer of the property. (b) Owners of land that qualifies for inclusion pursuant to section <br />
         		
         <statute_ref><a id="pl.166.18"></a><var>166.18</var>88.49, subdivision 9a
         </statute_ref>, or 
         <statute_ref>88.491, subdivision 2</statute_ref>, must notify the commissioner in writing <br />
         		<a id="pl.166.19"></a><var>166.19</var>of the expiration of the auxiliary forest contract or land trade with a governmental unit <br />
         		<a id="pl.166.20"></a><var>166.20</var>and submit an application to the commissioner by August 15 July 1 in order to be eligible <br />
         		<a id="pl.166.21"></a><var>166.21</var>to receive a payment by October 1 of that same year. For purposes of section 
         <statute_ref>290C.11</statute_ref>, <br />
         		<a id="pl.166.22"></a><var>166.22</var>claimant also includes any person bound by the covenant required in section 
         <statute_ref>290C.04</statute_ref>.<br />
         		<a id="pl.166.23"></a><var>166.23</var>&#160;&#160;&#160;&#160;(b) (c) No more than one claimant is entitled to a payment under this chapter with <br />
         		<a id="pl.166.24"></a><var>166.24</var>respect to any tract, parcel, or piece of land enrolled under this chapter that has been <br />
         		<a id="pl.166.25"></a><var>166.25</var>assigned the same parcel identification number. When enrolled forest land is owned by <br />
         		<a id="pl.166.26"></a><var>166.26</var>two or more persons, the owners must determine between them which person is eligible <br />
         		<a id="pl.166.27"></a><var>166.27</var>to claim the payments provided under sections 
         <statute_ref>290C.01</statute_ref> to 
         <statute_ref>290C.11  209C.13</statute_ref>. In the <br />
         		<a id="pl.166.28"></a><var>166.28</var>case of property sold or transferred, the former owner and the purchaser or grantee must <br />
         		<a id="pl.166.29"></a><var>166.29</var>determine between them which person is eligible to claim the payments provided under <br />
         		<a id="pl.166.30"></a><var>166.30</var>sections 
         <statute_ref>290C.01</statute_ref> to 
         <statute_ref>290C.11  209C.13</statute_ref>. The owners, transferees, or grantees must notify <br />
         		<a id="pl.166.31"></a><var>166.31</var>the commissioner in writing which person is eligible to claim the payments.<br />
         		<a id="pl.166.32"></a><var>166.32</var><b>EFFECTIVE DATE.</b>This section is effective for certifications and applications <br />
         		<a id="pl.166.33"></a><var>166.33</var>due in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.10.4.0"></a><a id="pl.167.1"></a><var>167.1</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 290C.02, subdivision 6, is amended to read:<br />
         		<a id="pl.167.2"></a><var>167.2</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Forest land.</b> "Forest land" means land containing a minimum of 20 <br />
         		<a id="pl.167.3"></a><var>167.3</var>contiguous acres for which the owner has implemented a forest management plan that was <br />
         		<a id="pl.167.4"></a><var>167.4</var>prepared or updated within the past ten years by an approved plan writer. For purposes of <br />
         		<a id="pl.167.5"></a><var>167.5</var>this subdivision, acres are considered to be contiguous even if they are separated by a road, <br />
         		<a id="pl.167.6"></a><var>167.6</var>waterway, railroad track, or other similar intervening property. At least 50 percent of the <br />
         		<a id="pl.167.7"></a><var>167.7</var>contiguous acreage must meet the definition of forest land in section 
         <statute_ref>88.01, subdivision 7</statute_ref>. <br />
         		<a id="pl.167.8"></a><var>167.8</var>For the purposes of sections 
         <statute_ref>290C.01</statute_ref> to 
         <statute_ref>290C.11  209C.13</statute_ref>, forest land does not include <br />
         		<a id="pl.167.9"></a><var>167.9</var>(i) land used for residential or agricultural purposes, (ii) land enrolled in the reinvest in <br />
         		<a id="pl.167.10"></a><var>167.10</var>Minnesota program, a state or federal conservation reserve or easement reserve program <br />
         		<a id="pl.167.11"></a><var>167.11</var>under sections 
         <statute_ref>103F.501</statute_ref> to 
         <statute_ref>103F.531</statute_ref>, the Minnesota agricultural property tax law under <br />
         		<a id="pl.167.12"></a><var>167.12</var>section 
         <statute_ref>273.111</statute_ref>, or land subject to agricultural land preservation controls or restrictions <br />
         		<a id="pl.167.13"></a><var>167.13</var>as defined in section 
         <statute_ref>40A.02</statute_ref> or under the Metropolitan Agricultural Preserves Act under <br />
         		<a id="pl.167.14"></a><var>167.14</var>chapter 473H, (iii) land exceeding 60,000 acres that is subject to a single conservation <br />
         		<a id="pl.167.15"></a><var>167.15</var>easement funded under section 
         <statute_ref>97A.056</statute_ref> or a comparable permanent easement conveyed <br />
         		<a id="pl.167.16"></a><var>167.16</var>to a governmental or nonprofit entity; (iv) any land that becomes subject to a conservation <br />
         		<a id="pl.167.17"></a><var>167.17</var>easement funded under section 
         <statute_ref>97A.056</statute_ref> or a comparable permanent easement conveyed <br />
         		<a id="pl.167.18"></a><var>167.18</var>to a governmental or nonprofit entity after May 30, 2013; or (v)  (iv) land improved with a <br />
         		<a id="pl.167.19"></a><var>167.19</var>structure,; pavement,  other than a paved trail under easement, lease, or terminable license <br />
         		<a id="pl.167.20"></a><var>167.20</var>to the state of Minnesota or a political subdivision; sewer,; campsite,; or any road, other <br />
         		<a id="pl.167.21"></a><var>167.21</var>than a township road, used for purposes not prescribed in the forest management plan.<br />
         		<a id="pl.167.22"></a><var>167.22</var><b>EFFECTIVE DATE.</b>This section is effective for applications made in 2017 and <br />
         		<a id="pl.167.23"></a><var>167.23</var>thereafter. <br />
         		<br />
         		<a id="bill.10.5.0"></a><a id="pl.167.24"></a><var>167.24</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 290C.03, is amended to read:<br />
         		<a id="pl.167.25"></a><var>167.25</var><b>290C.03 ELIGIBILITY REQUIREMENTS.</b><br />
         		<a id="pl.167.26"></a><var>167.26</var>(a) Land may be enrolled in the sustainable forest incentive program under this <br />
         		<a id="pl.167.27"></a><var>167.27</var>chapter if all of the following conditions are met:<br />
         		<a id="pl.167.28"></a><var>167.28</var>(1) the land consists of at least 20 contiguous acres and at least 50 percent of the <br />
         		<a id="pl.167.29"></a><var>167.29</var>land must meet the definition of forest land in section 
         <statute_ref>88.01, subdivision 7</statute_ref>, during the <br />
         		<a id="pl.167.30"></a><var>167.30</var>enrollment;<br />
         		<a id="pl.167.31"></a><var>167.31</var>(2) a forest management plan for the land must be prepared by an approved plan <br />
         		<a id="pl.167.32"></a><var>167.32</var>writer and implemented during the period in which the land is enrolled;<br />
         		<a id="pl.168.1"></a><var>168.1</var>(3) timber harvesting and forest management guidelines must be used in conjunction <br />
         		<a id="pl.168.2"></a><var>168.2</var>with any timber harvesting or forest management activities conducted on the land during <br />
         		<a id="pl.168.3"></a><var>168.3</var>the period in which the land is enrolled;<br />
         		<a id="pl.168.4"></a><var>168.4</var>(4) the land must be enrolled for a minimum of eight years;<br />
         		<a id="pl.168.5"></a><var>168.5</var>(5) there are no delinquent property taxes on the land; and<br />
         		<a id="pl.168.6"></a><var>168.6</var>(6) claimants enrolling more than 1,920 acres or enrolling any land that is subject <br />
         		<a id="pl.168.7"></a><var>168.7</var>to a conservation easement funded under section 97A.056, or a comparable permanent <br />
         		<a id="pl.168.8"></a><var>168.8</var>easement conveyed to a governmental or nonprofit entity in the sustainable forest incentive <br />
         		<a id="pl.168.9"></a><var>168.9</var>program must allow year-round, nonmotorized access to fish and wildlife resources and <br />
         		<a id="pl.168.10"></a><var>168.10</var>motorized access on established and maintained roads and trails, unless the road or trail is <br />
         		<a id="pl.168.11"></a><var>168.11</var>temporarily closed for safety, natural resource, or road damage reasons on enrolled land <br />
         		<a id="pl.168.12"></a><var>168.12</var>except within one-fourth mile of a permanent dwelling or during periods of high fire <br />
         		<a id="pl.168.13"></a><var>168.13</var>hazard as determined by the commissioner of natural resources.;<br />
         		<a id="pl.168.14"></a><var>168.14</var>(7) the claimant has registered the forest management plan under clause (2) with the <br />
         		<a id="pl.168.15"></a><var>168.15</var>commissioner of natural resources, who has determined that the land meets qualifications <br />
         		<a id="pl.168.16"></a><var>168.16</var>for enrollment; and<br />
         		<a id="pl.168.17"></a><var>168.17</var>(8) the land is not classified as class 2c managed forest land.<br />
         		<a id="pl.168.18"></a><var>168.18</var>(b) Claimants required to allow access under paragraph (a), clause (6), do not by <br />
         		<a id="pl.168.19"></a><var>168.19</var>that action:<br />
         		<a id="pl.168.20"></a><var>168.20</var>(1) extend any assurance that the land is safe for any purpose;<br />
         		<a id="pl.168.21"></a><var>168.21</var>(2) confer upon the person the legal status of an invitee or licensee to whom a duty <br />
         		<a id="pl.168.22"></a><var>168.22</var>of care is owed; or<br />
         		<a id="pl.168.23"></a><var>168.23</var>(3) assume responsibility for or incur liability for any injury to the person or property <br />
         		<a id="pl.168.24"></a><var>168.24</var>caused by an act or omission of the person.<br />
         		<a id="pl.168.25"></a><var>168.25</var>(c) The commissioner of natural resources shall annually provide county assessors <br />
         		<a id="pl.168.26"></a><var>168.26</var>verification information regarding plan registration under paragraph (a), clause (7), on <br />
         		<a id="pl.168.27"></a><var>168.27</var>a timely basis.<br />
         		<a id="pl.168.28"></a><var>168.28</var>(d) A minimum of three acres must be excluded from enrolled land when the land is <br />
         		<a id="pl.168.29"></a><var>168.29</var>improved with a structure that is not a minor, ancillary, and nonresidential structure.<br />
         		<a id="pl.168.30"></a><var>168.30</var>(e) If land does not meet the definition of forest land in section 290C.02, subdivision <br />
         		<a id="pl.168.31"></a><var>168.31</var>6, because the land is: <br />
         		<a id="pl.168.32"></a><var>168.32</var>(1) enrolled in a state or federal conservation reserve or easement program under <br />
         		<a id="pl.168.33"></a><var>168.33</var>sections 103F.501 to 103F.531; <br />
         		<a id="pl.168.34"></a><var>168.34</var>(2) subject to the Minnesota agricultural property tax under section 273.111; or <br />
         		<a id="pl.169.1"></a><var>169.1</var>(3) subject to agricultural land preservation controls or restrictions as defined in <br />
         		<a id="pl.169.2"></a><var>169.2</var>section 40A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H, the <br />
         		<a id="pl.169.3"></a><var>169.3</var>entire tax parcel that contains the land is not eligible to be enrolled in the program.<br />
         		<a id="pl.169.4"></a><var>169.4</var><b>EFFECTIVE DATE.</b>This section is effective for certifications and applications <br />
         		<a id="pl.169.5"></a><var>169.5</var>due in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.10.6.0"></a><a id="pl.169.6"></a><var>169.6</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 290C.04, is amended to read:<br />
         		<a id="pl.169.7"></a><var>169.7</var><b>290C.04 APPLICATIONS.</b><br />
         		<a id="pl.169.8"></a><var>169.8</var>&#160;&#160;&#160;&#160;(a) A landowner may apply to enroll forest land for the sustainable forest incentive <br />
         		<a id="pl.169.9"></a><var>169.9</var>program under this chapter. The claimant must complete, sign, and submit an application <br />
         		<a id="pl.169.10"></a><var>169.10</var>to the commissioner by September 30 in order for the land to become eligible beginning <br />
         		<a id="pl.169.11"></a><var>169.11</var>in the next year. The application shall be on a form prescribed by the commissioner <br />
         		<a id="pl.169.12"></a><var>169.12</var>commissioners of revenue and natural resources and must include the information the <br />
         		<a id="pl.169.13"></a><var>169.13</var>commissioner deems necessary. At a minimum, the application must show the following <br />
         		<a id="pl.169.14"></a><var>169.14</var>information for the land and the claimant: (i) the claimant's Social Security number or <br />
         		<a id="pl.169.15"></a><var>169.15</var>state or federal business tax registration number and date of birth, (ii) the claimant's <br />
         		<a id="pl.169.16"></a><var>169.16</var>address, (iii) the claimant's signature, (iv) the county's parcel identification numbers for <br />
         		<a id="pl.169.17"></a><var>169.17</var>the tax parcels that completely contain the claimant's forest land that is sought to be <br />
         		<a id="pl.169.18"></a><var>169.18</var>enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the approved <br />
         		<a id="pl.169.19"></a><var>169.19</var>plan writer's signature and identification number, and (vii) proof, in a form specified by the <br />
         		<a id="pl.169.20"></a><var>169.20</var>commissioner, that the claimant has executed and acknowledged in the manner required <br />
         		<a id="pl.169.21"></a><var>169.21</var>by law for a deed, and recorded, a covenant that the land is not and shall not be developed <br />
         		<a id="pl.169.22"></a><var>169.22</var>in a manner inconsistent with the requirements and conditions of this chapter, and (viii) a <br />
         		<a id="pl.169.23"></a><var>169.23</var>registration number for the forest management plan, issued by the commissioner of natural <br />
         		<a id="pl.169.24"></a><var>169.24</var>resources. The covenant shall state in writing that the covenant is binding on the claimant <br />
         		<a id="pl.169.25"></a><var>169.25</var>and the claimant's successor or assignee, and that it runs with the land for a period of not <br />
         		<a id="pl.169.26"></a><var>169.26</var>less than eight years unless the claimant requests termination of the covenant after a <br />
         		<a id="pl.169.27"></a><var>169.27</var>reduction in payments due to changes in the payment formula under section 290C.07 or as <br />
         		<a id="pl.169.28"></a><var>169.28</var>a result of executive action, the amount of payment a claimant is eligible to receive under <br />
         		<a id="pl.169.29"></a><var>169.29</var>section 290C.07 is reduced or limited. The commissioner shall specify the form of the <br />
         		<a id="pl.169.30"></a><var>169.30</var>covenant and provide copies upon request. The covenant must include a legal description <br />
         		<a id="pl.169.31"></a><var>169.31</var>that encompasses all the forest land that the claimant wishes to enroll under this section or <br />
         		<a id="pl.169.32"></a><var>169.32</var>the certificate of title number for that land if it is registered land. The commissioner of <br />
         		<a id="pl.169.33"></a><var>169.33</var>natural resources shall record the area eligible for enrollment into the Sustainable Forest <br />
         		<a id="pl.169.34"></a><var>169.34</var>Incentive Act as electronic geospatial data, as defined in section 16E.30, subdivision 10.<br />
         		<a id="pl.170.1"></a><var>170.1</var>(b) The commissioner shall provide a copy of the application filed by the claimant <br />
         		<a id="pl.170.2"></a><var>170.2</var>and all supporting materials to the commissioner of natural resources within 15 days of <br />
         		<a id="pl.170.3"></a><var>170.3</var>receipt or by September 1, whichever is sooner. The commissioner of natural resources <br />
         		<a id="pl.170.4"></a><var>170.4</var>must notify the commissioner whether the applicant qualifies for enrollment within 30 <br />
         		<a id="pl.170.5"></a><var>170.5</var>days of receipt, and if the applicant qualifies for enrollment, the commissioner of natural <br />
         		<a id="pl.170.6"></a><var>170.6</var>resources shall specify the number of qualifying acres per tax parcel.<br />
         		<a id="pl.170.7"></a><var>170.7</var>&#160;&#160;&#160;&#160;(b) In all cases, (c) The commissioner shall notify the claimant within 90 days after <br />
         		<a id="pl.170.8"></a><var>170.8</var>receipt of a completed application that either the land has or has not been approved for <br />
         		<a id="pl.170.9"></a><var>170.9</var>enrollment. A claimant whose application is denied may appeal the denial as provided <br />
         		<a id="pl.170.10"></a><var>170.10</var>in section 
         <statute_ref>290C.13</statute_ref>.<br />
         		<a id="pl.170.11"></a><var>170.11</var>&#160;&#160;&#160;&#160;(c) (d) Within 90 days after the denial of an application, or within 90 days after the <br />
         		<a id="pl.170.12"></a><var>170.12</var>final resolution of any appeal related to the denial, the commissioner shall execute and <br />
         		<a id="pl.170.13"></a><var>170.13</var>acknowledge a document releasing the land from the covenant required under this chapter. <br />
         		<a id="pl.170.14"></a><var>170.14</var>The document must be mailed to the claimant and is entitled to be recorded.<br />
         		<a id="pl.170.15"></a><var>170.15</var>&#160;&#160;&#160;&#160;(d) (e) The Social Security numbers collected from individuals under this section are <br />
         		<a id="pl.170.16"></a><var>170.16</var>private data as provided in section 
         <statute_ref>13.355</statute_ref>. The federal business tax registration number <br />
         		<a id="pl.170.17"></a><var>170.17</var>and date of birth data collected under this section are also private data on individuals or <br />
         		<a id="pl.170.18"></a><var>170.18</var>nonpublic data, as defined in section 
         <statute_ref>13.02</statute_ref>, subdivisions 9 and 12, but may be shared <br />
         		<a id="pl.170.19"></a><var>170.19</var>with county assessors for purposes of tax administration and with county treasurers for <br />
         		<a id="pl.170.20"></a><var>170.20</var>purposes of the revenue recapture under chapter 270A.<br />
         		<a id="pl.170.21"></a><var>170.21</var><b>EFFECTIVE DATE.</b>This section is effective for certifications and applications <br />
         		<a id="pl.170.22"></a><var>170.22</var>due in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.10.7.0"></a><a id="pl.170.23"></a><var>170.23</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 290C.05, is amended to read:<br />
         		<a id="pl.170.24"></a><var>170.24</var><b>290C.05 ANNUAL CERTIFICATION</b><b> AND MONITORING</b><b>.</b><br />
         		<a id="pl.170.25"></a><var>170.25</var>&#160;&#160;&#160;&#160;(a) On or before July 1 May 15 of each year, beginning with the year after the <br />
         		<a id="pl.170.26"></a><var>170.26</var>original claimant has received an approved application, the commissioner shall send each <br />
         		<a id="pl.170.27"></a><var>170.27</var>claimant enrolled under the sustainable forest incentive program a certification form. For <br />
         		<a id="pl.170.28"></a><var>170.28</var>purposes of this section, the original claimant is the person that filed the first application <br />
         		<a id="pl.170.29"></a><var>170.29</var>under section 
         <statute_ref>290C.04</statute_ref> to enroll the land in the program current property owner on record, <br />
         		<a id="pl.170.30"></a><var>170.30</var>or the person designated by the owners in the case of multiple ownership. The claimant <br />
         		<a id="pl.170.31"></a><var>170.31</var>must sign and return the certification, attesting to the commissioner by July 1 of that <br />
         		<a id="pl.170.32"></a><var>170.32</var>same year, and (1) attest that the requirements and conditions for continued enrollment <br />
         		<a id="pl.170.33"></a><var>170.33</var>in the program are currently being met, and must return the signed certification form to <br />
         		<a id="pl.170.34"></a><var>170.34</var>the commissioner by August 15 of that same year (2) provide a report in the form and <br />
         		<a id="pl.171.1"></a><var>171.1</var>manner determined by the commissioner of natural resources describing the management <br />
         		<a id="pl.171.2"></a><var>171.2</var>practices that have been carried out on the enrolled property during the prior year. If the <br />
         		<a id="pl.171.3"></a><var>171.3</var>claimant does not return an annual certification form by the due date, the provisions <br />
         		<a id="pl.171.4"></a><var>171.4</var>in section 
         <statute_ref>290C.11</statute_ref> apply. The commissioner of natural resources must verify that the <br />
         		<a id="pl.171.5"></a><var>171.5</var>claimant meets program requirements.<br />
         		<a id="pl.171.6"></a><var>171.6</var>(b) The commissioner must provide the certification form and annual report described <br />
         		<a id="pl.171.7"></a><var>171.7</var>in paragraph (a), clause (2), to the commissioner of natural resources by August 1.<br />
         		<a id="pl.171.8"></a><var>171.8</var>(c) The commissioner of natural resources must conduct annual monitoring <br />
         		<a id="pl.171.9"></a><var>171.9</var>of a subset of claimants, excluding land also enrolled in a conservation easement <br />
         		<a id="pl.171.10"></a><var>171.10</var>program. Claimants will be selected for monitoring based on reported violations, annual <br />
         		<a id="pl.171.11"></a><var>171.11</var>certification, and random selections. Monitoring will be conducted on ten percent of <br />
         		<a id="pl.171.12"></a><var>171.12</var>claimants as of July 1 of each year. Monitoring may include, but is not limited to, a site <br />
         		<a id="pl.171.13"></a><var>171.13</var>visit by a Department of Natural Resources or contracted forester. The commissioner of <br />
         		<a id="pl.171.14"></a><var>171.14</var>natural resources must develop a monitoring form to record the monitoring data.<br />
         		<a id="pl.171.15"></a><var>171.15</var><b>EFFECTIVE DATE.</b>Paragraphs (a) and (b) are effective for certifications and <br />
         		<a id="pl.171.16"></a><var>171.16</var>applications due in 2017 and thereafter. Paragraph (c) is effective July 1, 2019.<br />
         		<br />
         		<a id="bill.10.8.0"></a><a id="pl.171.17"></a><var>171.17</var>&#160;&#160;&#160;&#160;Sec. 8. Minnesota Statutes 2014, section 290C.055, is amended to read:<br />
         		<a id="pl.171.18"></a><var>171.18</var><b>290C.055 LENGTH OF COVENANT.</b><br />
         		<a id="pl.171.19"></a><var>171.19</var>(a) The covenant remains in effect for a minimum of eight years. Claimants enrolling <br />
         		<a id="pl.171.20"></a><var>171.20</var>any land that is subject to a conservation easement funded under section 97A.056 or a <br />
         		<a id="pl.171.21"></a><var>171.21</var>comparable permanent easement conveyed to a governmental or nonprofit entity must <br />
         		<a id="pl.171.22"></a><var>171.22</var>enroll their land under a covenant with a minimum duration of eight years. All other <br />
         		<a id="pl.171.23"></a><var>171.23</var>claimants may choose to enroll their land under a covenant with a minimum duration of <br />
         		<a id="pl.171.24"></a><var>171.24</var>eight, 20, or 50 years. If land is removed the claimant requests removal of land from the <br />
         		<a id="pl.171.25"></a><var>171.25</var>program before it has been enrolled for four years one-half the number of years of the <br />
         		<a id="pl.171.26"></a><var>171.26</var>covenant's duration, the covenant remains in effect for eight years the entire duration <br />
         		<a id="pl.171.27"></a><var>171.27</var>of the covenant from the date recorded.<br />
         		<a id="pl.171.28"></a><var>171.28</var>(b) If land that has been enrolled for four years one-half the number of years of the <br />
         		<a id="pl.171.29"></a><var>171.29</var>covenant's minimum duration or more is removed from the program for any reason, there <br />
         		<a id="pl.171.30"></a><var>171.30</var>is a waiting period before the covenant terminates. The covenant terminates on January 1 <br />
         		<a id="pl.171.31"></a><var>171.31</var>of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year minimum covenant, <br />
         		<a id="pl.171.32"></a><var>171.32</var>respectively, that begins after the date that:<br />
         		<a id="pl.171.33"></a><var>171.33</var>(1) the commissioner receives notification from the claimant that the claimant wishes <br />
         		<a id="pl.171.34"></a><var>171.34</var>to remove the land from the program under section 
         <statute_ref>290C.10</statute_ref>; or<br />
         		<a id="pl.172.1"></a><var>172.1</var>(2) the date that the land is removed from the program under section 
         <statute_ref>290C.11</statute_ref>.<br />
         		<a id="pl.172.2"></a><var>172.2</var>(c) Notwithstanding the other provisions of this section, the covenant is terminated:<br />
         		<a id="pl.172.3"></a><var>172.3</var>(1) at the same time that the land is removed from the program due to acquisition of <br />
         		<a id="pl.172.4"></a><var>172.4</var>title or possession for a public purpose under section 
         <statute_ref>290C.10</statute_ref>; or<br />
         		<a id="pl.172.5"></a><var>172.5</var>(2) at the request of the claimant after (i) if there is a reduction in payments due to <br />
         		<a id="pl.172.6"></a><var>172.6</var>changes in the payment formula under section 
         <statute_ref>290C.07</statute_ref>; or (ii) if, as a result of executive <br />
         		<a id="pl.172.7"></a><var>172.7</var>action, the amount of payment a claimant is eligible to receive under section 290C.07 is <br />
         		<a id="pl.172.8"></a><var>172.8</var>reduced or limited.<br />
         		<a id="pl.172.9"></a><var>172.9</var><b>EFFECTIVE DATE.</b>This section is effective for certifications and applications in <br />
         		<a id="pl.172.10"></a><var>172.10</var>2017 and thereafter.<br />
         		<br />
         		<a id="bill.10.9.0"></a><a id="pl.172.11"></a><var>172.11</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2014, section 290C.07, is amended to read:<br />
         		<a id="pl.172.12"></a><var>172.12</var><b>290C.07 CALCULATION OF INCENTIVE PAYMENT. </b><br />
         		<a id="pl.172.13"></a><var>172.13</var>&#160;&#160;&#160;&#160;(a) An approved claimant under the sustainable forest incentive program is eligible <br />
         		<a id="pl.172.14"></a><var>172.14</var>to receive an annual payment for each acre of enrolled land, excluding any acre improved <br />
         		<a id="pl.172.15"></a><var>172.15</var>with a paved trail under easement, lease, or terminable license to the state of Minnesota or <br />
         		<a id="pl.172.16"></a><var>172.16</var>a political subdivision. The payment shall equal $7 per acre for each acre enrolled in the <br />
         		<a id="pl.172.17"></a><var>172.17</var>sustainable forest incentive program. a percentage of the property tax that would be paid <br />
         		<a id="pl.172.18"></a><var>172.18</var>on the land determined by using the previous year's statewide average total tax rate for all <br />
         		<a id="pl.172.19"></a><var>172.19</var>taxes levied within townships and unorganized territories, the estimated market value per <br />
         		<a id="pl.172.20"></a><var>172.20</var>acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for <br />
         		<a id="pl.172.21"></a><var>172.21</var>claimants enrolling land that is subject to a conservation easement funded under section <br />
         		<a id="pl.172.22"></a><var>172.22</var><statute_ref>97A.056</statute_ref> or a comparable permanent easement conveyed to a governmental or nonprofit <br />
         		<a id="pl.172.23"></a><var>172.23</var>entity before May 31, 2013, 25 percent; (2) for claimants enrolling land that is not subject <br />
         		<a id="pl.172.24"></a><var>172.24</var>to a conservation easement under an eight-year covenant, 65 percent; (3) for claimants <br />
         		<a id="pl.172.25"></a><var>172.25</var>enrolling land that is not subject to a conservation easement  under a 20-year covenant, 90 <br />
         		<a id="pl.172.26"></a><var>172.26</var>percent; and (4) for claimants enrolling land that is not subject to a conservation easement <br />
         		<a id="pl.172.27"></a><var>172.27</var>under a 50-year covenant, 115 percent. <br />
         		<a id="pl.172.28"></a><var>172.28</var>&#160;&#160;&#160;&#160;(b) The calculated payment shall not be less than the payment received in 2016 and <br />
         		<a id="pl.172.29"></a><var>172.29</var>shall not increase or decrease by more than ten percent relative to the payment received <br />
         		<a id="pl.172.30"></a><var>172.30</var>for the previous year.<br />
         		<a id="pl.172.31"></a><var>172.31</var>(c) In addition to the payments provided under this section, a claimant enrolling <br />
         		<a id="pl.172.32"></a><var>172.32</var>more than 1,920 acres shall be allowed an additional payment per acre equal to the <br />
         		<a id="pl.172.33"></a><var>172.33</var>amount prescribed in paragraph (a), clause (1), for all acres of enrolled land on which <br />
         		<a id="pl.172.34"></a><var>172.34</var>public access is allowed, as required under section 290C.03, paragraph (a), clause (6), <br />
         		<a id="pl.173.1"></a><var>173.1</var>excluding any land subject to a conservation easement funded under section 97A.056, or a <br />
         		<a id="pl.173.2"></a><var>173.2</var>permanent easement conveyed to a governmental or nonprofit entity that is required to <br />
         		<a id="pl.173.3"></a><var>173.3</var>allow for public access under section 290C.03, paragraph (a), clause (6).<br />
         		<a id="pl.173.4"></a><var>173.4</var><b>EFFECTIVE DATE.</b>This section is effective for calculations made in 2017 and <br />
         		<a id="pl.173.5"></a><var>173.5</var>thereafter. <br />
         		<br />
         		<a id="bill.10.10.0"></a><a id="pl.173.6"></a><var>173.6</var>&#160;&#160;&#160;&#160;Sec. 10. Minnesota Statutes 2014, section 290C.08, subdivision 1, is amended to read:<br />
         		<a id="pl.173.7"></a><var>173.7</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Annual payment.</b> An incentive payment for each acre of enrolled <br />
         		<a id="pl.173.8"></a><var>173.8</var>land will be made annually to each claimant in the amount determined under section <br />
         		
         <statute_ref><a id="pl.173.9"></a><var>173.9</var>290C.07
         </statute_ref>. By September 15 of each year, the commissioner of natural resources will <br />
         		<a id="pl.173.10"></a><var>173.10</var>certify to the commissioner the eligibility of each claimant to receive a payment. The <br />
         		<a id="pl.173.11"></a><var>173.11</var>incentive payment shall be paid by the commissioner on or before October 1 each year <br />
         		<a id="pl.173.12"></a><var>173.12</var>based on the certifications due August 15 July 1 of that year. Interest at the annual rate <br />
         		<a id="pl.173.13"></a><var>173.13</var>determined under section 
         <statute_ref>270C.40</statute_ref> shall be included with any incentive payment not <br />
         		<a id="pl.173.14"></a><var>173.14</var>paid by the later of October 1 of the year the certification was due, or 45 days after the <br />
         		<a id="pl.173.15"></a><var>173.15</var>completed certification was returned or filed if the commissioner accepts a certification <br />
         		<a id="pl.173.16"></a><var>173.16</var>filed after August 15 July 1 of the taxes payable year as the resolution of an appeal.<br />
         		<a id="pl.173.17"></a><var>173.17</var><b>EFFECTIVE DATE.</b>This section is effective for certifications and applications <br />
         		<a id="pl.173.18"></a><var>173.18</var>due in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.10.11.0"></a><a id="pl.173.19"></a><var>173.19</var>&#160;&#160;&#160;&#160;Sec. 11. Minnesota Statutes 2014, section 290C.10, is amended to read:<br />
         		<a id="pl.173.20"></a><var>173.20</var><b>290C.10 WITHDRAWAL PROCEDURES.</b><br />
         		<a id="pl.173.21"></a><var>173.21</var>An approved claimant (a) The current owner of land enrolled under the sustainable <br />
         		<a id="pl.173.22"></a><var>173.22</var>forest incentive program for a minimum of four years one-half the number of years <br />
         		<a id="pl.173.23"></a><var>173.23</var>of the covenant's minimum duration may notify the commissioner of the intent to <br />
         		<a id="pl.173.24"></a><var>173.24</var>terminate enrollment. Within 90 days of receipt of notice to terminate enrollment, the <br />
         		<a id="pl.173.25"></a><var>173.25</var>commissioner shall inform the claimant in writing, acknowledging receipt of this notice <br />
         		<a id="pl.173.26"></a><var>173.26</var>and indicating the effective date of termination from the sustainable forest incentive <br />
         		<a id="pl.173.27"></a><var>173.27</var>program. Termination of enrollment in the sustainable forest incentive program occurs on <br />
         		<a id="pl.173.28"></a><var>173.28</var>January 1 of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year respective <br />
         		<a id="pl.173.29"></a><var>173.29</var>minimum covenant that begins after receipt by the commissioner of the termination <br />
         		<a id="pl.173.30"></a><var>173.30</var>notice. After the commissioner issues an effective date of termination, a claimant wishing <br />
         		<a id="pl.173.31"></a><var>173.31</var>to continue the land's enrollment in the sustainable forest incentive program beyond the <br />
         		<a id="pl.173.32"></a><var>173.32</var>termination date must apply for enrollment as prescribed in section 
         <statute_ref>290C.04</statute_ref>. A claimant <br />
         		<a id="pl.173.33"></a><var>173.33</var>who withdraws a parcel of land from this program may not reenroll the parcel for a period <br />
         		<a id="pl.174.1"></a><var>174.1</var>of three years. Within 90 days after the termination date, the commissioner shall execute <br />
         		<a id="pl.174.2"></a><var>174.2</var>and acknowledge a document releasing the land from the covenant required under this <br />
         		<a id="pl.174.3"></a><var>174.3</var>chapter. The document must be mailed to the claimant and is entitled to be recorded.<br />
         		<a id="pl.174.4"></a><var>174.4</var>(b) Notwithstanding paragraph (a), on request of the claimant,  the commissioner may <br />
         		<a id="pl.174.5"></a><var>174.5</var>allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the <br />
         		<a id="pl.174.6"></a><var>174.6</var>state of Minnesota, any local government unit, or any other entity which has the power of <br />
         		<a id="pl.174.7"></a><var>174.7</var>eminent domain acquires title or possession to the land for a public purpose notwithstanding <br />
         		<a id="pl.174.8"></a><var>174.8</var>the provisions of this section. In the case of such an eligible acquisition under this <br />
         		<a id="pl.174.9"></a><var>174.9</var>paragraph, the commissioner shall execute and acknowledge a document releasing the <br />
         		<a id="pl.174.10"></a><var>174.10</var>land acquired by the state, local government unit, or other entity from the covenant.<br />
         		<a id="pl.174.11"></a><var>174.11</var>(c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner <br />
         		<a id="pl.174.12"></a><var>174.12</var>shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty <br />
         		<a id="pl.174.13"></a><var>174.13</var>when a government or nonprofit entity acquires a permanent conservation easement on the <br />
         		<a id="pl.174.14"></a><var>174.14</var>enrolled property and the conservation easement is at least as restrictive as the covenant <br />
         		<a id="pl.174.15"></a><var>174.15</var>required under section 290C.04. The commissioner of natural resources must notify the <br />
         		<a id="pl.174.16"></a><var>174.16</var>commissioner of lands acquired under this paragraph that are eligible for withdrawal. <br />
         		<a id="pl.174.17"></a><var>174.17</var>In the case of an eligible easement acquisition under this paragraph, the commissioner <br />
         		<a id="pl.174.18"></a><var>174.18</var>shall execute and acknowledge a document releasing the land subject to the easement <br />
         		<a id="pl.174.19"></a><var>174.19</var>from the covenant.<br />
         		<a id="pl.174.20"></a><var>174.20</var>(d) Notwithstanding paragraph (a), upon request of the claimant, the commissioner <br />
         		<a id="pl.174.21"></a><var>174.21</var>shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty for <br />
         		<a id="pl.174.22"></a><var>174.22</var>land that is subject to fee or easement acquisition or lease to the state of Minnesota or a <br />
         		<a id="pl.174.23"></a><var>174.23</var>political subdivision of the state for the public purpose of a paved trail. The commissioner <br />
         		<a id="pl.174.24"></a><var>174.24</var>of natural resources must notify the commissioner of lands acquired under this paragraph <br />
         		<a id="pl.174.25"></a><var>174.25</var>that are eligible for withdrawal. In the case of an eligible fee or easement acquisition or <br />
         		<a id="pl.174.26"></a><var>174.26</var>lease under this paragraph, the commissioner shall execute and acknowledge a document <br />
         		<a id="pl.174.27"></a><var>174.27</var>releasing the land subject to fee or easement acquisition or lease by the state or political <br />
         		<a id="pl.174.28"></a><var>174.28</var>subdivision of the state.<br />
         		<a id="pl.174.29"></a><var>174.29</var>(e) All other enrolled land must remain in the program.<br />
         		<a id="pl.174.30"></a><var>174.30</var><b>EFFECTIVE DATE.</b>The amendments to paragraphs (c) and (d) are effective <br />
         		<a id="pl.174.31"></a><var>174.31</var>the day following final enactment. The amendments to paragraphs (a), (b), and (e) are <br />
         		<a id="pl.174.32"></a><var>174.32</var>effective for notifications made in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.10.12.0"></a><a id="pl.174.33"></a><var>174.33</var>&#160;&#160;&#160;&#160;Sec. 12. <b>[290C.101] TRANSFER OF OWNERSHIP.</b><br />
         		<a id="pl.174.34"></a><var>174.34</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br />
         		<a id="pl.174.35"></a><var>174.35</var>have the meanings provided.<br />
         		<a id="pl.175.1"></a><var>175.1</var>(b) "New owner" means a prospective purchaser or grantee.<br />
         		<a id="pl.175.2"></a><var>175.2</var>(c) "Owner" means a grantor or seller.<br />
         		<a id="pl.175.3"></a><var>175.3</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Notification to commissioner.</b> (a) An owner must notify the commissioner <br />
         		<a id="pl.175.4"></a><var>175.4</var>if the owner transfers any or all of the owner's land enrolled in the sustainable forest <br />
         		<a id="pl.175.5"></a><var>175.5</var>incentive program to one or more new owners within 60 days of the transfer of title to the <br />
         		<a id="pl.175.6"></a><var>175.6</var>property. The notification must include the legal descriptions of the transferred property, <br />
         		<a id="pl.175.7"></a><var>175.7</var>the tax parcel numbers, and the name and address of the new owner. If transfer of ownership <br />
         		<a id="pl.175.8"></a><var>175.8</var>is a result of the death of the claimant, the provisions of section 290C.12 shall apply.<br />
         		<a id="pl.175.9"></a><var>175.9</var>(b) Upon notification, the commissioner shall inform the new owner of the <br />
         		<a id="pl.175.10"></a><var>175.10</var>restrictions of the covenant required by section 290C.04 and the withdrawal procedures <br />
         		<a id="pl.175.11"></a><var>175.11</var>under section 290C.10. In order for the new owner to receive payments pursuant to this <br />
         		<a id="pl.175.12"></a><var>175.12</var>chapter, the new owner must file an application and register a new forest management plan <br />
         		<a id="pl.175.13"></a><var>175.13</var>with the commissioner of natural resources within two years from the date the title of the <br />
         		<a id="pl.175.14"></a><var>175.14</var>property was transferred to remain eligible.<br />
         		<a id="pl.175.15"></a><var>175.15</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Termination of enrollment.</b> The commissioner will terminate enrollment <br />
         		<a id="pl.175.16"></a><var>175.16</var>according to the procedure in section 290C.10 for failure of the new owner to register a <br />
         		<a id="pl.175.17"></a><var>175.17</var>forest management plan within the time period in subdivision 2, paragraph (b).<br />
         		<a id="pl.175.18"></a><var>175.18</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2016.<br />
         		<br />
         		<a id="bill.10.13.0"></a><a id="pl.175.19"></a><var>175.19</var>&#160;&#160;&#160;&#160;Sec. 13. Minnesota Statutes 2014, section 290C.11, is amended to read:<br />
         		<a id="pl.175.20"></a><var>175.20</var><b>290C.11 PENALTIES FOR REMOVAL.</b><br />
         		<a id="pl.175.21"></a><var>175.21</var>&#160;&#160;&#160;&#160;(a) If the commissioner determines that land enrolled in the sustainable forest <br />
         		<a id="pl.175.22"></a><var>175.22</var>incentive program is in violation of the conditions for enrollment as specified in section <br />
         		
         <statute_ref><a id="pl.175.23"></a><var>175.23</var>290C.03
         </statute_ref>, or upon notification by the commissioner of natural resources that land enrolled <br />
         		<a id="pl.175.24"></a><var>175.24</var>is in violation of the conditions for enrollment, the commissioner shall notify the claimant <br />
         		<a id="pl.175.25"></a><var>175.25</var>current owner of the land of the intent to remove all the tax parcel of the enrolled land <br />
         		<a id="pl.175.26"></a><var>175.26</var>where the violation has occurred from the sustainable forest incentive program. The <br />
         		<a id="pl.175.27"></a><var>175.27</var>penalties described under paragraph (c) apply. The claimant current owner has 60 days to <br />
         		<a id="pl.175.28"></a><var>175.28</var>appeal this determination under the provisions of section 
         <statute_ref>290C.13</statute_ref>.<br />
         		<a id="pl.175.29"></a><var>175.29</var>&#160;&#160;&#160;&#160;(b) If the commissioner determines the land is to be removed from the sustainable <br />
         		<a id="pl.175.30"></a><var>175.30</var>forest incentive program due to the construction or addition of an improvement to the <br />
         		<a id="pl.175.31"></a><var>175.31</var>property, the claimant owner of the tax parcel that is in violation is liable for payment <br />
         		<a id="pl.175.32"></a><var>175.32</var>to the commissioner in the amount equal to: (1) the payments received issued related to <br />
         		<a id="pl.175.33"></a><var>175.33</var>the enrolled tax parcel under this chapter for the previous four-year period in the case of <br />
         		<a id="pl.175.34"></a><var>175.34</var>an eight-year minimum covenant, ten-year period in the case of a 20-year minimum <br />
         		<a id="pl.176.1"></a><var>176.1</var>covenant, or 25-year period in the case of a 50-year minimum covenant, plus interest; and <br />
         		<a id="pl.176.2"></a><var>176.2</var>(2) 25 percent of the estimated market value of the property as reclassified under section <br />
         		<a id="pl.176.3"></a><var>176.3</var>273.13 due to the structure being on the tax parcel, as determined by the assessor.<br />
         		<a id="pl.176.4"></a><var>176.4</var>(c) If the commissioner of natural resources determines that the land is used for <br />
         		<a id="pl.176.5"></a><var>176.5</var>purposes other than forestry purposes, the commissioner of natural resources shall notify <br />
         		<a id="pl.176.6"></a><var>176.6</var>the commissioner of revenue, who shall notify the current owner of the tax parcel that is in <br />
         		<a id="pl.176.7"></a><var>176.7</var>violation that the current owner is liable to the commissioner in an amount equal to: (1) 30 <br />
         		<a id="pl.176.8"></a><var>176.8</var>percent of the estimated market value as property reclassified under section 273.13, due <br />
         		<a id="pl.176.9"></a><var>176.9</var>to the change in use, as determined by the assessor; and (2) the payments issued related <br />
         		<a id="pl.176.10"></a><var>176.10</var>to the enrolled tax parcel under this chapter for the previous four-year period in the case <br />
         		<a id="pl.176.11"></a><var>176.11</var>of an eight-year covenant, ten-year period in the case of a 20-year covenant, or 25-year <br />
         		<a id="pl.176.12"></a><var>176.12</var>period in the case of a 50-year covenant, plus interest.<br />
         		<a id="pl.176.13"></a><var>176.13</var>&#160;&#160;&#160;&#160;(d) The claimant has 90 days to satisfy the payment for removal of land from the <br />
         		<a id="pl.176.14"></a><var>176.14</var>sustainable forest incentive program under this section. If the penalty is not paid within <br />
         		<a id="pl.176.15"></a><var>176.15</var>the 90-day period under this paragraph, the commissioner shall certify the amount to the <br />
         		<a id="pl.176.16"></a><var>176.16</var>county auditor for collection as a part of the general ad valorem real property taxes on the <br />
         		<a id="pl.176.17"></a><var>176.17</var>land in the following taxes payable year.<br />
         		<a id="pl.176.18"></a><var>176.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.14.0"></a><a id="pl.176.19"></a><var>176.19</var>&#160;&#160;&#160;&#160;Sec. 14. Minnesota Statutes 2014, section 290C.13, subdivision 6, is amended to read:<br />
         		<a id="pl.176.20"></a><var>176.20</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Determination of appeal.</b> On the basis of applicable law and available <br />
         		<a id="pl.176.21"></a><var>176.21</var>information, the commissioner shall determine the validity, if any, in whole or in part, <br />
         		<a id="pl.176.22"></a><var>176.22</var>of the appeal and notify the claimant of the decision. This notice must be in writing <br />
         		<a id="pl.176.23"></a><var>176.23</var>and contain the basis for the determination. The commissioner shall consult with the <br />
         		<a id="pl.176.24"></a><var>176.24</var>commissioner of natural resources when an appeal relates to the use of the property for <br />
         		<a id="pl.176.25"></a><var>176.25</var>forestry or nonforestry purposes and for appeals related to forest management plans.<br />
         		<a id="pl.176.26"></a><var>176.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.15.0"></a><a id="pl.176.27"></a><var>176.27</var>&#160;&#160;&#160;&#160;Sec. 15. <b>SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION </b><br />
         		<a id="pl.176.28"></a><var>176.28</var><b>PROVISION.</b><br />
         		<a id="pl.176.29"></a><var>176.29</var>(a) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the <br />
         		<a id="pl.176.30"></a><var>176.30</var>owner of enrolled lands may elect through May 15, 2018, and without penalty, to change <br />
         		<a id="pl.176.31"></a><var>176.31</var>the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055. The <br />
         		<a id="pl.176.32"></a><var>176.32</var>owner of enrolled land must provide notice to the Department of Revenue of its intent to <br />
         		<a id="pl.176.33"></a><var>176.33</var>change the length of its covenant.<br />
         		<a id="pl.177.1"></a><var>177.1</var>(b) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the <br />
         		<a id="pl.177.2"></a><var>177.2</var>owner of enrolled land must comply with the changes made in the act by certifications due <br />
         		<a id="pl.177.3"></a><var>177.3</var>in 2018, as required under Minnesota Statutes, section 290C.05.<br />
         		<a id="pl.177.4"></a><var>177.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.16.0"></a><a id="pl.177.5"></a><var>177.5</var>&#160;&#160;&#160;&#160;Sec. 16. <b>ADMINISTRATIVE APPROPRIATION.</b><br />
         		<a id="pl.177.6"></a><var>177.6</var>$600,000 in fiscal year 2017 is appropriated from the general fund to the <br />
         		<a id="pl.177.7"></a><var>177.7</var>commissioner of natural resources for administering this article. The funding base for <br />
         		<a id="pl.177.8"></a><var>177.8</var>administering this article in fiscal year 2018 and thereafter is $600,000.<br />
         		<a id="pl.177.9"></a><var>177.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.17.0"></a><a id="pl.177.10"></a><var>177.10</var>&#160;&#160;&#160;&#160;Sec. 17. <b> REPEALER.</b><br />
         		<a id="pl.177.11"></a><var>177.11</var>Minnesota Statutes 2014, section 290C.02, subdivisions 5 and 9, are repealed.<br />
         		<a id="pl.177.12"></a><var>177.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.11.0.0"></a><div class="xtend_ce"><a id="pl.177.13"></a><var>177.13</var><b>ARTICLE 11</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.177.14"></a><var>177.14</var><b>MISCELLANEOUS</b><br />
            		
         </div><br />
         		<a id="bill.11.1.0"></a><a id="pl.177.15"></a><var>177.15</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2015 Supplement, section 16A.152, subdivision 2, <br />
         		<a id="pl.177.16"></a><var>177.16</var>is amended to read:<br />
         		<a id="pl.177.17"></a><var>177.17</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Additional revenues; priority.</b> (a) If on the basis of a forecast of general <br />
         		<a id="pl.177.18"></a><var>177.18</var>fund revenues and expenditures, the commissioner of management and budget determines <br />
         		<a id="pl.177.19"></a><var>177.19</var>that there will be a positive unrestricted budgetary general fund balance at the close of <br />
         		<a id="pl.177.20"></a><var>177.20</var>the biennium, the commissioner of management and budget must allocate money to the <br />
         		<a id="pl.177.21"></a><var>177.21</var>following accounts and purposes in priority order:<br />
         		<a id="pl.177.22"></a><var>177.22</var>&#160;&#160;&#160;&#160;(1) the cash flow account established in subdivision 1 until that account reaches <br />
         		<a id="pl.177.23"></a><var>177.23</var>$350,000,000;<br />
         		<a id="pl.177.24"></a><var>177.24</var>&#160;&#160;&#160;&#160;(2) the budget reserve account established in subdivision 1a until that account <br />
         		<a id="pl.177.25"></a><var>177.25</var>reaches $810,992,000 $1,596,522,000;<br />
         		<a id="pl.177.26"></a><var>177.26</var>&#160;&#160;&#160;&#160;(3) the amount necessary to increase the aid payment schedule for school district <br />
         		<a id="pl.177.27"></a><var>177.27</var>aids and credits payments in section 
         <statute_ref>127A.45</statute_ref> to not more than 90 percent rounded to the <br />
         		<a id="pl.177.28"></a><var>177.28</var>nearest tenth of a percent without exceeding the amount available and with any remaining <br />
         		<a id="pl.177.29"></a><var>177.29</var>funds deposited in the budget reserve; and<br />
         		<a id="pl.177.30"></a><var>177.30</var>&#160;&#160;&#160;&#160;(4) the amount necessary to restore all or a portion of the net aid reductions under <br />
         		<a id="pl.177.31"></a><var>177.31</var>section 
         <statute_ref>127A.441</statute_ref> and to reduce the property tax revenue recognition shift under section <br />
         		
         <statute_ref><a id="pl.177.32"></a><var>177.32</var>123B.75, subdivision 5
         </statute_ref>, by the same amount;.<br />
         		<a id="pl.178.1"></a><var>178.1</var>&#160;&#160;&#160;&#160;(5) the closed landfill investment fund established in section 
         <statute_ref>115B.421</statute_ref> until <br />
         		<a id="pl.178.2"></a><var>178.2</var>$63,215,000 has been transferred into the account. This clause expires after the entire <br />
         		<a id="pl.178.3"></a><var>178.3</var>amount of the transfer has been made; and<br />
         		<a id="pl.178.4"></a><var>178.4</var>(6) the metropolitan landfill contingency action trust account established in section <br />
         		<a id="pl.178.5"></a><var>178.5</var><statute_ref>473.845</statute_ref> until $8,100,000 has been transferred into the account. This clause expires after <br />
         		<a id="pl.178.6"></a><var>178.6</var>the entire amount of the transfer has been made.<br />
         		<a id="pl.178.7"></a><var>178.7</var>&#160;&#160;&#160;&#160;(b) The amounts necessary to meet the requirements of this section are appropriated <br />
         		<a id="pl.178.8"></a><var>178.8</var>from the general fund within two weeks after the forecast is released or, in the case of <br />
         		<a id="pl.178.9"></a><var>178.9</var>transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations <br />
         		<a id="pl.178.10"></a><var>178.10</var>schedules otherwise established in statute.<br />
         		<a id="pl.178.11"></a><var>178.11</var>&#160;&#160;&#160;&#160;(c) The commissioner of management and budget shall certify the total dollar <br />
         		<a id="pl.178.12"></a><var>178.12</var>amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of <br />
         		<a id="pl.178.13"></a><var>178.13</var>education. The commissioner of education shall increase the aid payment percentage and <br />
         		<a id="pl.178.14"></a><var>178.14</var>reduce the property tax shift percentage by these amounts and apply those reductions to <br />
         		<a id="pl.178.15"></a><var>178.15</var>the current fiscal year and thereafter.<br />
         		<a id="pl.178.16"></a><var>178.16</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2016.<br />
         		<br />
         		<a id="bill.11.2.0"></a><a id="pl.178.17"></a><var>178.17</var>&#160;&#160;&#160;&#160;Sec. 2. <b>[116J.952] NEW MARKETS GRANT PROGRAM.</b><br />
         		<a id="pl.178.18"></a><var>178.18</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Grant program established.</b> The commissioner shall award new <br />
         		<a id="pl.178.19"></a><var>178.19</var>markets grants for qualified low-income community investments as specified under this <br />
         		<a id="pl.178.20"></a><var>178.20</var>section. The commissioner shall adopt rules to establish criteria for determining grant <br />
         		<a id="pl.178.21"></a><var>178.21</var>eligibility.<br />
         		<a id="pl.178.22"></a><var>178.22</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br />
         		<a id="pl.178.23"></a><var>178.23</var>the meanings given.<br />
         		<a id="pl.178.24"></a><var>178.24</var>(b) "Applicant" means a qualified community development entity as defined in <br />
         		<a id="pl.178.25"></a><var>178.25</var>paragraph (h).<br />
         		<a id="pl.178.26"></a><var>178.26</var>(c) "Commissioner" means the commissioner of employment and economic <br />
         		<a id="pl.178.27"></a><var>178.27</var>development.<br />
         		<a id="pl.178.28"></a><var>178.28</var>(d) "Greater Minnesota" means the area of the state that excludes the metropolitan <br />
         		<a id="pl.178.29"></a><var>178.29</var>area, as defined in section 473.121, subdivision 2.<br />
         		<a id="pl.178.30"></a><var>178.30</var>(e) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.<br />
         		<a id="pl.178.31"></a><var>178.31</var>(f) "Qualified active low-income community business" has the meaning given in <br />
         		<a id="pl.178.32"></a><var>178.32</var>section 45D of the Internal Revenue Code. The term does not include:<br />
         		<a id="pl.178.33"></a><var>178.33</var>(1) any trade or business engaged in insurance, banking, lending, lobbying, political <br />
         		<a id="pl.178.34"></a><var>178.34</var>consulting, or leisure; or<br />
         		<a id="pl.179.1"></a><var>179.1</var>(2) any trade or business activity consisting of the operation of any private or <br />
         		<a id="pl.179.2"></a><var>179.2</var>commercial golf course, country club, suntan facility, hot tub facility, massage parlor, race <br />
         		<a id="pl.179.3"></a><var>179.3</var>track, or other facility used for gambling, or any store the principal business of which is <br />
         		<a id="pl.179.4"></a><var>179.4</var>the sale of alcoholic beverages for consumption off premises.<br />
         		<a id="pl.179.5"></a><var>179.5</var>&#160;&#160;&#160;&#160;(g) "Low-income communities" as defined in section 45D of the Internal Revenue <br />
         		<a id="pl.179.6"></a><var>179.6</var>Code and applied to any term or requirement used in this section or an incorporated <br />
         		<a id="pl.179.7"></a><var>179.7</var>provision of federal law includes the area of any home rule charter or statutory city that:<br />
         		<a id="pl.179.8"></a><var>179.8</var>&#160;&#160;&#160;&#160;(1) is located in greater Minnesota;<br />
         		<a id="pl.179.9"></a><var>179.9</var>&#160;&#160;&#160;&#160;(2) has a population, as defined in section 477A.011, subdivision 3, of 500 or <br />
         		<a id="pl.179.10"></a><var>179.10</var>more; and<br />
         		<a id="pl.179.11"></a><var>179.11</var>&#160;&#160;&#160;&#160;(3) has net tax capacity of property, classified as class 3 under section 273.13, of <br />
         		<a id="pl.179.12"></a><var>179.12</var>less than $500 per capita for property taxes assessed in 2015, payable in 2016, including <br />
         		<a id="pl.179.13"></a><var>179.13</var>the city's distribution net tax capacity and excluding its contribution net tax capacity <br />
         		<a id="pl.179.14"></a><var>179.14</var>under chapter 276A.<br />
         		<a id="pl.179.15"></a><var>179.15</var>(h) "Qualified community development entity" has the meaning given in section <br />
         		<a id="pl.179.16"></a><var>179.16</var>45D of the Internal Revenue Code, provided that the entity has direct lending experience <br />
         		<a id="pl.179.17"></a><var>179.17</var>serving businesses in disadvantaged communities in the state and a primary mission of <br />
         		<a id="pl.179.18"></a><var>179.18</var>economic development.<br />
         		<a id="pl.179.19"></a><var>179.19</var>(i) "Qualified low-income community investment" means any capital or equity <br />
         		<a id="pl.179.20"></a><var>179.20</var>investment in, or loan to, any qualified active low-income community business.<br />
         		<a id="pl.179.21"></a><var>179.21</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Grant awards.</b> The commissioner shall award grants to qualified <br />
         		<a id="pl.179.22"></a><var>179.22</var>community development entities based on a competitive review of applications received <br />
         		<a id="pl.179.23"></a><var>179.23</var>by the commissioner using criteria established in subdivision 4. <br />
         		<a id="pl.179.24"></a><var>179.24</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Application.</b> (a) The commissioner shall develop an application form <br />
         		<a id="pl.179.25"></a><var>179.25</var>requiring information necessary to evaluate the benefits to Minnesota from awarding <br />
         		<a id="pl.179.26"></a><var>179.26</var>the grants.<br />
         		<a id="pl.179.27"></a><var>179.27</var>(b) Prior to awarding grants to an applicant under this subdivision, the commissioner <br />
         		<a id="pl.179.28"></a><var>179.28</var>shall consider the following:<br />
         		<a id="pl.179.29"></a><var>179.29</var>(1) whether the qualified community development entity has demonstrated <br />
         		<a id="pl.179.30"></a><var>179.30</var>experience providing capital or technical assistance to disadvantaged businesses or <br />
         		<a id="pl.179.31"></a><var>179.31</var>communities in the state;<br />
         		<a id="pl.179.32"></a><var>179.32</var>(2) the extent to which an applicant demonstrates direct experience in asset and risk <br />
         		<a id="pl.179.33"></a><var>179.33</var>management and in fulfilling government compliance requirements;<br />
         		<a id="pl.179.34"></a><var>179.34</var>(3) the extent to which an applicant demonstrates a capitalization strategy that <br />
         		<a id="pl.179.35"></a><var>179.35</var>ensures that the economic benefit of the grant allocation remains in the state;<br />
         		<a id="pl.180.1"></a><var>180.1</var>(4) the extent to which the applicant establishes standards for wages and benefits <br />
         		<a id="pl.180.2"></a><var>180.2</var>exceeding federal poverty guidelines and includes a means by which to monitor and <br />
         		<a id="pl.180.3"></a><var>180.3</var>measure ongoing compliance with those standards;<br />
         		<a id="pl.180.4"></a><var>180.4</var>(5) the financial contributions expected to be made to the project from nonstate <br />
         		<a id="pl.180.5"></a><var>180.5</var>sources; and<br />
         		<a id="pl.180.6"></a><var>180.6</var>(6) any other criteria the commissioner deems necessary.<br />
         		<a id="pl.180.7"></a><var>180.7</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Annual reporting by community development entities.</b> A community <br />
         		<a id="pl.180.8"></a><var>180.8</var>development entity that has been awarded a grant must submit an annual report to the <br />
         		<a id="pl.180.9"></a><var>180.9</var>commissioner within 180 days after the end of the fiscal year. The report must include <br />
         		<a id="pl.180.10"></a><var>180.10</var>information on investments made in the preceding year, including but not limited to the <br />
         		<a id="pl.180.11"></a><var>180.11</var>following:<br />
         		<a id="pl.180.12"></a><var>180.12</var>(1) the types of industries, identified by the North American Industry Classification <br />
         		<a id="pl.180.13"></a><var>180.13</var>System Code, in which a qualified low-income community investment was made;<br />
         		<a id="pl.180.14"></a><var>180.14</var>(2) the names of the counties in which the qualified active low-income community <br />
         		<a id="pl.180.15"></a><var>180.15</var>businesses are located which received qualified low-income community investments;<br />
         		<a id="pl.180.16"></a><var>180.16</var>(3) the number of jobs created and retained by qualified active low-income <br />
         		<a id="pl.180.17"></a><var>180.17</var>community businesses receiving qualified low-income community investments, including <br />
         		<a id="pl.180.18"></a><var>180.18</var>verification that the average wages and benefits paid to full-time employees, based on an <br />
         		<a id="pl.180.19"></a><var>180.19</var>hourly wage for a 40-hour work week, meet or exceed 105 percent of the federal poverty <br />
         		<a id="pl.180.20"></a><var>180.20</var>income guidelines for a family of four; and<br />
         		<a id="pl.180.21"></a><var>180.21</var>(4) other information and documentation required by the commissioner to verify <br />
         		<a id="pl.180.22"></a><var>180.22</var>continued certification as a qualified community development entity under United States <br />
         		<a id="pl.180.23"></a><var>180.23</var>Code, title 26, section 45D.<br />
         		<a id="pl.180.24"></a><var>180.24</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Application fees; fund created.</b> The qualified community development <br />
         		<a id="pl.180.25"></a><var>180.25</var>entity must submit a nonrefundable application fee at the time the application is submitted <br />
         		<a id="pl.180.26"></a><var>180.26</var>equal to the amount published in the Minnesota new markets grant program application. <br />
         		<a id="pl.180.27"></a><var>180.27</var>The commissioner may allow up to 25 percent of the fee to be submitted up to 180 days <br />
         		<a id="pl.180.28"></a><var>180.28</var>following the grant award and up to 25 percent of the fee to be submitted up to 270 days <br />
         		<a id="pl.180.29"></a><var>180.29</var>following the grant award. Application fees are deposited in the new markets grant <br />
         		<a id="pl.180.30"></a><var>180.30</var>program administration account in the special revenue fund.<br />
         		<a id="pl.180.31"></a><var>180.31</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Administrative fees.</b> Upon the issuance of a qualified low-income <br />
         		<a id="pl.180.32"></a><var>180.32</var>community investment by a qualified community development entity, an administrative <br />
         		<a id="pl.180.33"></a><var>180.33</var>fee in an amount determined by the commissioner and published in the grant agreement <br />
         		<a id="pl.180.34"></a><var>180.34</var>must be deposited in the new markets grant program administration account in the special <br />
         		<a id="pl.180.35"></a><var>180.35</var>revenue fund.<br />
         		<a id="pl.181.1"></a><var>181.1</var>&#160;&#160;&#160;&#160;Subd. 8. <b>Administrative expenses.</b> Amounts in the new markets grant program <br />
         		<a id="pl.181.2"></a><var>181.2</var>administration account are appropriated annually to the commissioner for administrative <br />
         		<a id="pl.181.3"></a><var>181.3</var>expenses related to administering the new markets grant program in this section.<br />
         		<a id="pl.181.4"></a><var>181.4</var>&#160;&#160;&#160;&#160;Subd. 9. <b>Annual report.</b> The commissioner shall annually by January 15, 2018 <br />
         		<a id="pl.181.5"></a><var>181.5</var>through 2023, report to the chairs and ranking minority members of the legislative <br />
         		<a id="pl.181.6"></a><var>181.6</var>committees on economic development on the implementation of the grant program, <br />
         		<a id="pl.181.7"></a><var>181.7</var>including an evaluation of the success and economic impact of the program in the state. <br />
         		<a id="pl.181.8"></a><var>181.8</var>The report must include:<br />
         		<a id="pl.181.9"></a><var>181.9</var>(1) the number of women-owned and minority-owned businesses assisted by the <br />
         		<a id="pl.181.10"></a><var>181.10</var>grants;<br />
         		<a id="pl.181.11"></a><var>181.11</var>(2) the number of greater Minnesota-located businesses assisted by the grants and <br />
         		<a id="pl.181.12"></a><var>181.12</var>the amount of that assistance;<br />
         		<a id="pl.181.13"></a><var>181.13</var>(3) the number of metropolitan area-located businesses assisted by the grants and the <br />
         		<a id="pl.181.14"></a><var>181.14</var>amount of that assistance;<br />
         		<a id="pl.181.15"></a><var>181.15</var>(4) the number of jobs created by the grants including the number of women and <br />
         		<a id="pl.181.16"></a><var>181.16</var>minorities obtaining jobs; and<br />
         		<a id="pl.181.17"></a><var>181.17</var>(5) the number of jobs created by the grants located in greater Minnesota and in the <br />
         		<a id="pl.181.18"></a><var>181.18</var>metropolitan area.<br />
         		<a id="pl.181.19"></a><var>181.19</var>&#160;&#160;&#160;&#160;Subd. 10. <b>Expiration.</b> This section expires the earlier of July 1, 2024, or when the <br />
         		<a id="pl.181.20"></a><var>181.20</var>last of the grant funds have been awarded. The commissioner must issue the rules for the <br />
         		<a id="pl.181.21"></a><var>181.21</var>implementation of this section to allow commencement of grant awards by January 1, 2017.<br />
         		<a id="pl.181.22"></a><var>181.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.11.3.0"></a><a id="pl.181.23"></a><var>181.23</var>&#160;&#160;&#160;&#160;Sec. 3. <b>[270C.22] TAX TIME SAVINGS GRANT PROGRAM.</b><br />
         		<a id="pl.181.24"></a><var>181.24</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br />
         		<a id="pl.181.25"></a><var>181.25</var>have the meanings given.<br />
         		<a id="pl.181.26"></a><var>181.26</var>(b) "Financial capability services" means any of the following:<br />
         		<a id="pl.181.27"></a><var>181.27</var>(1) assistance with opening a savings or transactional account that meets the Federal <br />
         		<a id="pl.181.28"></a><var>181.28</var>Deposit Insurance Corporation's model safe accounts template standards;<br />
         		<a id="pl.181.29"></a><var>181.29</var>(2) assistance with depositing all or part of a tax refund into a savings or transactional <br />
         		<a id="pl.181.30"></a><var>181.30</var>account;<br />
         		<a id="pl.181.31"></a><var>181.31</var>(3) assistance with obtaining and reviewing a consumer report or credit score, as <br />
         		<a id="pl.181.32"></a><var>181.32</var>those terms are defined in United States Code, title 15, section 1681a;<br />
         		<a id="pl.181.33"></a><var>181.33</var>(4) assistance with obtaining and reviewing a banking history report;<br />
         		<a id="pl.181.34"></a><var>181.34</var>(5) financial coaching, or referral to financial coaching services, as provided in <br />
         		<a id="pl.181.35"></a><var>181.35</var>section 256E.35, subdivision 4a;<br />
         		<a id="pl.182.1"></a><var>182.1</var>(6) National Foundation for Credit Counseling certified consumer credit and debt <br />
         		<a id="pl.182.2"></a><var>182.2</var>counseling or referral to these services;<br />
         		<a id="pl.182.3"></a><var>182.3</var>(7) enrollment in a matched or incentivized savings program, including the provision <br />
         		<a id="pl.182.4"></a><var>182.4</var>of matching or incentive funds;<br />
         		<a id="pl.182.5"></a><var>182.5</var>(8) assistance with purchasing federal retirement savings bonds, as described in <br />
         		<a id="pl.182.6"></a><var>182.6</var>Code of Federal Regulations, title 31, part 347, or referral to a certified financial planner, <br />
         		<a id="pl.182.7"></a><var>182.7</var>registered investment adviser, licensed insurance producer or agent, or a registered <br />
         		<a id="pl.182.8"></a><var>182.8</var>securities broker-dealer representative for private sector retirement options; or<br />
         		<a id="pl.182.9"></a><var>182.9</var>(9) assistance with purchasing a Series I United States Savings Bond with all or <br />
         		<a id="pl.182.10"></a><var>182.10</var>part of a tax refund.<br />
         		<a id="pl.182.11"></a><var>182.11</var>(c) "Transactional account" means a traditional demand deposit account or a general <br />
         		<a id="pl.182.12"></a><var>182.12</var>purpose reloadable prepaid card offered by a bank or credit union.<br />
         		<a id="pl.182.13"></a><var>182.13</var>(d) "TCE" means the Tax Counseling for the Elderly program established by the <br />
         		<a id="pl.182.14"></a><var>182.14</var>Internal Revenue Service.<br />
         		<a id="pl.182.15"></a><var>182.15</var>(e) "VITA" means the Volunteer Income Tax Assistance program established by the <br />
         		<a id="pl.182.16"></a><var>182.16</var>Internal Revenue Service.<br />
         		<a id="pl.182.17"></a><var>182.17</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Creation.</b> The commissioner of revenue shall establish a tax time <br />
         		<a id="pl.182.18"></a><var>182.18</var>savings grant program to make grants to one or more nonprofit organizations to fund the <br />
         		<a id="pl.182.19"></a><var>182.19</var>integration of financial capability services into the delivery of taxpayer assistance services <br />
         		<a id="pl.182.20"></a><var>182.20</var>funded by grants under section 270C.21.<br />
         		<a id="pl.182.21"></a><var>182.21</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Qualified applicant.</b> To be eligible to receive a grant under the tax time <br />
         		<a id="pl.182.22"></a><var>182.22</var>savings grant program, an applicant must:<br />
         		<a id="pl.182.23"></a><var>182.23</var>(1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered <br />
         		<a id="pl.182.24"></a><var>182.24</var>with the Internal Revenue Service as part of either the VITA or TCE programs; and<br />
         		<a id="pl.182.25"></a><var>182.25</var>(2) commit to dedicate at least one staff or volunteer position to coordinate financial <br />
         		<a id="pl.182.26"></a><var>182.26</var>capability services at a VITA or TCE program site and to offer VITA or TCE program <br />
         		<a id="pl.182.27"></a><var>182.27</var>participants free assistance with the initiation through completion of:<br />
         		<a id="pl.182.28"></a><var>182.28</var>(i) opening a savings and a transactional account that meet the Federal Deposit <br />
         		<a id="pl.182.29"></a><var>182.29</var>Insurance Corporation's model safe accounts template standards;<br />
         		<a id="pl.182.30"></a><var>182.30</var>(ii) depositing all or part of a tax refund into a savings or transactional account; and<br />
         		<a id="pl.182.31"></a><var>182.31</var>(iii) purchasing a Series I United States Savings Bond with all or part of a tax refund.<br />
         		<a id="pl.182.32"></a><var>182.32</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Conflict of interest.</b> (a) No applicant may receive direct compensation <br />
         		<a id="pl.182.33"></a><var>182.33</var>from a bank, credit union, other financial services provider, or vendor in exchange for the <br />
         		<a id="pl.182.34"></a><var>182.34</var>applicant offering to program participants the products or services of that bank, credit <br />
         		<a id="pl.182.35"></a><var>182.35</var>union, other financial services provider, or vendor.<br />
         		<a id="pl.183.1"></a><var>183.1</var>(b) No applicant may receive funding from a bank, credit union, other financial <br />
         		<a id="pl.183.2"></a><var>183.2</var>services provider, or vendor that is contingent on the applicant offering products or <br />
         		<a id="pl.183.3"></a><var>183.3</var>services of that bank, credit union, other financial services provider, or vendor to program <br />
         		<a id="pl.183.4"></a><var>183.4</var>participants.<br />
         		<a id="pl.183.5"></a><var>183.5</var>(c) An applicant may receive funding from a bank, credit union, other financial <br />
         		<a id="pl.183.6"></a><var>183.6</var>services provider, or vendor that is not in exchange for or contingent upon the applicant <br />
         		<a id="pl.183.7"></a><var>183.7</var>offering products or services of that bank, credit union, other financial services provider, <br />
         		<a id="pl.183.8"></a><var>183.8</var>or vendor to program participants.<br />
         		<a id="pl.183.9"></a><var>183.9</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Permitted use of grant funds.</b> (a) A grant recipient may use grant funds <br />
         		<a id="pl.183.10"></a><var>183.10</var>to dedicate a staff or volunteer position to coordinate financial capability services at a <br />
         		<a id="pl.183.11"></a><var>183.11</var>VITA or TCE site and to offer VITA or TCE program participants free assistance with the <br />
         		<a id="pl.183.12"></a><var>183.12</var>initiation through completion of:<br />
         		<a id="pl.183.13"></a><var>183.13</var>(1) opening a savings and a transactional account that meet the Federal Deposit <br />
         		<a id="pl.183.14"></a><var>183.14</var>Insurance Corporation's model safe accounts template standards;<br />
         		<a id="pl.183.15"></a><var>183.15</var>(2) depositing all or part of a tax refund into a savings or transactional account; and<br />
         		<a id="pl.183.16"></a><var>183.16</var>(3) purchasing a Series I United States Savings Bond with all or part of a tax refund.<br />
         		<a id="pl.183.17"></a><var>183.17</var>(b) A grant recipient who offers all of the financial capability services enumerated <br />
         		<a id="pl.183.18"></a><var>183.18</var>in paragraph (a) may also use grant funds to provide one or more additional financial <br />
         		<a id="pl.183.19"></a><var>183.19</var>capability services to VITA or TCE program participants at no cost to the participant.<br />
         		<br />
         		<a id="bill.11.4.0"></a><a id="pl.183.20"></a><var>183.20</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 271.08, subdivision 1, is amended to read:<br />
         		<a id="pl.183.21"></a><var>183.21</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Written order.</b> The Tax Court, except in Small Claims Division, <br />
         		<a id="pl.183.22"></a><var>183.22</var>shall determine every appeal by written order containing findings of fact and the decision <br />
         		<a id="pl.183.23"></a><var>183.23</var>of the tax court. A memorandum of the grounds of the decision shall be appended. Notice <br />
         		<a id="pl.183.24"></a><var>183.24</var>of the entry of the order and of the substance of the decision shall be mailed to all parties. <br />
         		<a id="pl.183.25"></a><var>183.25</var>A motion for rehearing, which includes a motion for amended findings of fact, conclusions <br />
         		<a id="pl.183.26"></a><var>183.26</var>of law, or a new trial, must be served by the moving party within 15 30 days after mailing <br />
         		<a id="pl.183.27"></a><var>183.27</var>of the notice by the court as specified in this subdivision, and the motion must be heard <br />
         		<a id="pl.183.28"></a><var>183.28</var>within 30 60 days thereafter, unless the time for hearing is extended by the court within <br />
         		<a id="pl.183.29"></a><var>183.29</var>the 30-day 60-day period for good cause shown.<br />
         		<a id="pl.183.30"></a><var>183.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.11.5.0"></a><a id="pl.183.31"></a><var>183.31</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 271.21, subdivision 2, is amended to read:<br />
         		<a id="pl.183.32"></a><var>183.32</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Jurisdiction.</b> At the election of the taxpayer, the Small Claims Division <br />
         		<a id="pl.183.33"></a><var>183.33</var>shall have jurisdiction only in the following matters:<br />
         		<a id="pl.183.34"></a><var>183.34</var>(a) cases involving valuation, assessment, or taxation of real or personal property, if:<br />
         		<a id="pl.184.1"></a><var>184.1</var>(i) the issue is a denial of a current year application for the homestead classification <br />
         		<a id="pl.184.2"></a><var>184.2</var>for the taxpayer's property;<br />
         		<a id="pl.184.3"></a><var>184.3</var>(ii) only one parcel is included in the petition, the entire parcel is classified as <br />
         		<a id="pl.184.4"></a><var>184.4</var>homestead class 1a or 1b under section 
         <statute_ref>273.13</statute_ref>, and the parcel contains no more than <br />
         		<a id="pl.184.5"></a><var>184.5</var>one dwelling unit;<br />
         		<a id="pl.184.6"></a><var>184.6</var>(iii) the entire property is classified as agricultural homestead class 2a or 1b under <br />
         		<a id="pl.184.7"></a><var>184.7</var>section 
         <statute_ref>273.13</statute_ref>; or<br />
         		<a id="pl.184.8"></a><var>184.8</var>(iv) the assessor's estimated market value of the property included in the petition <br />
         		<a id="pl.184.9"></a><var>184.9</var>is less than $300,000; or<br />
         		<a id="pl.184.10"></a><var>184.10</var>(b) any case not involving valuation, assessment, or taxation of real and personal <br />
         		<a id="pl.184.11"></a><var>184.11</var>property in which the amount in controversy does not exceed $5,000 $15,000, including <br />
         		<a id="pl.184.12"></a><var>184.12</var>penalty and interest.<br />
         		<a id="pl.184.13"></a><var>184.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.11.6.0"></a><a id="pl.184.14"></a><var>184.14</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 289A.60, is amended by adding a subdivision <br />
         		<a id="pl.184.15"></a><var>184.15</var>to read:<br />
         		<a id="pl.184.16"></a><var>184.16</var>&#160;&#160;&#160;&#160;Subd. 32. <b>Sales suppression.</b> (a) A person who:<br />
         		<a id="pl.184.17"></a><var>184.17</var>(1) sells;<br />
         		<a id="pl.184.18"></a><var>184.18</var>(2) transfers;<br />
         		<a id="pl.184.19"></a><var>184.19</var>(3) develops;<br />
         		<a id="pl.184.20"></a><var>184.20</var>(4) manufactures; or<br />
         		<a id="pl.184.21"></a><var>184.21</var>(5) possesses with the intent to sell or transfer <br />
         		<a id="pl.184.22"></a><var>184.22</var>an automated sales suppression device, zapper, phantom-ware, or similar device capable <br />
         		<a id="pl.184.23"></a><var>184.23</var>of being used to commit tax fraud or suppress sales is liable for a civil penalty calculated <br />
         		<a id="pl.184.24"></a><var>184.24</var>under paragraph (b).<br />
         		<a id="pl.184.25"></a><var>184.25</var>(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total <br />
         		<a id="pl.184.26"></a><var>184.26</var>amount of all taxes and penalties due that are attributable to the use of any automated <br />
         		<a id="pl.184.27"></a><var>184.27</var>sales suppression device, zapper, phantom-ware, or similar device facilitated by the sale, <br />
         		<a id="pl.184.28"></a><var>184.28</var>transfer, development, or manufacture of the automated sales suppression device, zapper, <br />
         		<a id="pl.184.29"></a><var>184.29</var>phantom-ware, or similar device by the person.<br />
         		<a id="pl.184.30"></a><var>184.30</var>(c) The definitions in section 609.858 apply to this subdivision.<br />
         		<a id="pl.184.31"></a><var>184.31</var><b>EFFECTIVE DATE.</b>This section is effective for activities enumerated in <br />
         		<a id="pl.184.32"></a><var>184.32</var>paragraph (a) that occur after July 1, 2016.<br />
         		<br />
         		<a id="bill.11.7.0"></a><a id="pl.184.33"></a><var>184.33</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 290A.03, subdivision 13, is amended to read:<br />
         		<a id="pl.185.1"></a><var>185.1</var>&#160;&#160;&#160;&#160;Subd. 13. <b>Property taxes payable.</b> "Property taxes payable" means the property tax <br />
         		<a id="pl.185.2"></a><var>185.2</var>exclusive of special assessments, penalties, and interest payable on a claimant's homestead <br />
         		<a id="pl.185.3"></a><var>185.3</var>after deductions made under sections 
         <statute_ref>273.135</statute_ref>, 
         <statute_ref>273.1384</statute_ref>, 
         <statute_ref>273.1391</statute_ref>, 
         <statute_ref>273.42, subdivision 2</statute_ref>, <br />
         		<a id="pl.185.4"></a><var>185.4</var>and any other state paid property tax credits in any calendar year, and after any refund <br />
         		<a id="pl.185.5"></a><var>185.5</var>claimed and allowable under section 
         <statute_ref>290A.04, subdivision 2h</statute_ref>, that is first payable in <br />
         		<a id="pl.185.6"></a><var>185.6</var>the year that the property tax is payable. In the case of a claimant who makes ground <br />
         		<a id="pl.185.7"></a><var>185.7</var>lease payments, "property taxes payable" includes the amount of the payments directly <br />
         		<a id="pl.185.8"></a><var>185.8</var>attributable to the property taxes assessed against the parcel on which the house is located. <br />
         		<a id="pl.185.9"></a><var>185.9</var>No apportionment or reduction of the "property taxes payable" shall be required for the <br />
         		<a id="pl.185.10"></a><var>185.10</var>use of a portion of the claimant's homestead for a business purpose if the claimant does <br />
         		<a id="pl.185.11"></a><var>185.11</var>not deduct any business depreciation expenses for the use of a portion of the homestead, <br />
         		<a id="pl.185.12"></a><var>185.12</var>or does not deduct expenses under section 280A of the Internal Revenue Code for a <br />
         		<a id="pl.185.13"></a><var>185.13</var>business operated in the home, in the determination of federal adjusted gross income. For <br />
         		<a id="pl.185.14"></a><var>185.14</var>homesteads which are manufactured homes as defined in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, <br />
         		<a id="pl.185.15"></a><var>185.15</var>and for homesteads which are park trailers taxed as manufactured homes under section <br />
         		
         <statute_ref><a id="pl.185.16"></a><var>185.16</var>168.012, subdivision 9
         </statute_ref>, "property taxes payable" shall also include 17 percent of the gross <br />
         		<a id="pl.185.17"></a><var>185.17</var>rent paid in the preceding year for the site on which the homestead is located. When <br />
         		<a id="pl.185.18"></a><var>185.18</var>a homestead is owned by two or more persons as joint tenants or tenants in common, <br />
         		<a id="pl.185.19"></a><var>185.19</var>such tenants shall determine between them which tenant may claim the property taxes <br />
         		<a id="pl.185.20"></a><var>185.20</var>payable on the homestead. If they are unable to agree, the matter shall be referred to the <br />
         		<a id="pl.185.21"></a><var>185.21</var>commissioner of revenue whose decision shall be final. Property taxes are considered <br />
         		<a id="pl.185.22"></a><var>185.22</var>payable in the year prescribed by law for payment of the taxes.<br />
         		<a id="pl.185.23"></a><var>185.23</var>In the case of a claim relating to "property taxes payable," the claimant must have <br />
         		<a id="pl.185.24"></a><var>185.24</var>owned and occupied the homestead on January 2 of the year in which the tax is payable <br />
         		<a id="pl.185.25"></a><var>185.25</var>and (i) the property must have been classified as homestead property pursuant to section <br />
         		
         <statute_ref><a id="pl.185.26"></a><var>185.26</var>273.124
         </statute_ref>, on or before December 15 of the assessment year to which the "property taxes <br />
         		<a id="pl.185.27"></a><var>185.27</var>payable" relate; or (ii) the claimant must provide documentation from the local assessor <br />
         		<a id="pl.185.28"></a><var>185.28</var>that application for homestead classification has been made on or before December 15 <br />
         		<a id="pl.185.29"></a><var>185.29</var>of the year in which the "property taxes payable" were payable and that the assessor has <br />
         		<a id="pl.185.30"></a><var>185.30</var>approved the application.<br />
         		<a id="pl.185.31"></a><var>185.31</var><b>EFFECTIVE DATE.</b>This section is effective for refunds based on rent paid after <br />
         		<a id="pl.185.32"></a><var>185.32</var>December 31, 2014, and property taxes payable after December 31, 2015.<br />
         		<br />
         		<a id="bill.11.8.0"></a><a id="pl.185.33"></a><var>185.33</var>&#160;&#160;&#160;&#160;Sec. 8. Minnesota Statutes 2014, section 469.169, is amended by adding a subdivision <br />
         		<a id="pl.185.34"></a><var>185.34</var>to read:<br />
         		<a id="pl.186.1"></a><var>186.1</var>&#160;&#160;&#160;&#160;Subd. 20. <b>Additional allocation; 2016.</b> In addition to the tax reductions in <br />
         		<a id="pl.186.2"></a><var>186.2</var>subdivisions 12 to 19, $3,000,000 is allocated for tax reductions to border city enterprise <br />
         		<a id="pl.186.3"></a><var>186.3</var>zones in cities located on the western border of the state. The commissioner shall allocate <br />
         		<a id="pl.186.4"></a><var>186.4</var>this amount among cities on a per capita basis.  Allocations under this subdivision may <br />
         		<a id="pl.186.5"></a><var>186.5</var>be used for tax reductions under sections 469.171, 469.1732, and 469.1734, or for other <br />
         		<a id="pl.186.6"></a><var>186.6</var>offsets of taxes imposed on or remitted by businesses located in the enterprise zone, <br />
         		<a id="pl.186.7"></a><var>186.7</var>but only if the municipality determines that the granting of the tax reduction or offset is <br />
         		<a id="pl.186.8"></a><var>186.8</var>necessary to retain a business within or attract a business to the zone.<br />
         		<a id="pl.186.9"></a><var>186.9</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2016.<br />
         		<br />
         		<a id="bill.11.9.0"></a><a id="pl.186.10"></a><var>186.10</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2014, section 609.5316, subdivision 3, is amended to read:<br />
         		<a id="pl.186.11"></a><var>186.11</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Weapons, telephone cloning paraphernalia, </b><b>automated sales </b><br />
         		<a id="pl.186.12"></a><var>186.12</var><b>suppression devices, </b><b>and bullet-resistant vests.</b> Weapons used are contraband and <br />
         		<a id="pl.186.13"></a><var>186.13</var>must be summarily forfeited to the appropriate agency upon conviction of the weapon's <br />
         		<a id="pl.186.14"></a><var>186.14</var>owner or possessor for a controlled substance crime; for any offense of this chapter <br />
         		<a id="pl.186.15"></a><var>186.15</var>or chapter 624, or for a violation of an order for protection under section 
         <statute_ref>518B.01, <br />
            		<a id="pl.186.16"></a><var>186.16</var>subdivision 14
         </statute_ref>. Bullet-resistant vests, as defined in section 
         <statute_ref>609.486</statute_ref>, worn or possessed <br />
         		<a id="pl.186.17"></a><var>186.17</var>during the commission or attempted commission of a crime are contraband and must be <br />
         		<a id="pl.186.18"></a><var>186.18</var>summarily forfeited to the appropriate agency upon conviction of the owner or possessor <br />
         		<a id="pl.186.19"></a><var>186.19</var>for a controlled substance crime or for any offense of this chapter. Telephone cloning <br />
         		<a id="pl.186.20"></a><var>186.20</var>paraphernalia used in a violation of section 
         <statute_ref>609.894</statute_ref>, and automated sales suppression <br />
         		<a id="pl.186.21"></a><var>186.21</var>devices, phantom-ware, and other devices containing an automated sales suppression or <br />
         		<a id="pl.186.22"></a><var>186.22</var>phantom-ware device or software used in violation of section 609.858, are contraband and <br />
         		<a id="pl.186.23"></a><var>186.23</var>must be summarily forfeited to the appropriate agency upon a conviction.<br />
         		<br />
         		<a id="bill.11.10.0"></a><a id="pl.186.24"></a><var>186.24</var>&#160;&#160;&#160;&#160;Sec. 10. <b>[609.858] USE OF AUTOMATED SALES SUPPRESSION DEVICES.</b><br />
         		<a id="pl.186.25"></a><var>186.25</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br />
         		<a id="pl.186.26"></a><var>186.26</var>have the meanings given.<br />
         		<a id="pl.186.27"></a><var>186.27</var>(b) "Automated sales suppression device" or "zapper" means a software program, <br />
         		<a id="pl.186.28"></a><var>186.28</var>carried on any tangible medium, or accessed through any other means, that falsifies the <br />
         		<a id="pl.186.29"></a><var>186.29</var>electronic records of electronic cash registers and other point-of-sale systems including, <br />
         		<a id="pl.186.30"></a><var>186.30</var>but not limited to, transaction data and transaction reports.<br />
         		<a id="pl.186.31"></a><var>186.31</var>(c) "Electronic cash register" means a device that keeps a register or supporting <br />
         		<a id="pl.186.32"></a><var>186.32</var>documents through the means of an electronic device or computer system designed to <br />
         		<a id="pl.186.33"></a><var>186.33</var>record transaction data for the purpose of computing, compiling, or processing retail <br />
         		<a id="pl.186.34"></a><var>186.34</var>sales transaction data in whatever manner.<br />
         		<a id="pl.187.1"></a><var>187.1</var>(d) "Phantom-ware" means hidden preinstalled, or later-installed programming <br />
         		<a id="pl.187.2"></a><var>187.2</var>option embedded in the operating system of an electronic cash register or hardwired <br />
         		<a id="pl.187.3"></a><var>187.3</var>into the electronic cash register that can be used to create a virtual second electronic <br />
         		<a id="pl.187.4"></a><var>187.4</var>cash register or may eliminate or manipulate transaction records that may or may not be <br />
         		<a id="pl.187.5"></a><var>187.5</var>preserved in digital formats to represent the true or manipulated record of transactions in <br />
         		<a id="pl.187.6"></a><var>187.6</var>the electronic cash register.<br />
         		<a id="pl.187.7"></a><var>187.7</var>(e) "Transaction data" includes items purchased by a customer, the price of each <br />
         		<a id="pl.187.8"></a><var>187.8</var>item, the taxability determination for each item, a segregated tax amount for each of <br />
         		<a id="pl.187.9"></a><var>187.9</var>the taxed items, the date and time of the purchase, the name, address and identification <br />
         		<a id="pl.187.10"></a><var>187.10</var>number of the vendor, and the receipt or invoice number of the transaction.<br />
         		<a id="pl.187.11"></a><var>187.11</var>(f) "Transaction report" means a report documenting, but not limited to, the sales, <br />
         		<a id="pl.187.12"></a><var>187.12</var>taxes collected, media totals, and discount voids at an electronic cash register that is <br />
         		<a id="pl.187.13"></a><var>187.13</var>printed on cash register tape at the end of a day or shift, or a report documenting every <br />
         		<a id="pl.187.14"></a><var>187.14</var>action at an electronic cash register that is stored electronically.<br />
         		<a id="pl.187.15"></a><var>187.15</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Felony.</b> A person who sells, purchases, installs, transfers, possesses, <br />
         		<a id="pl.187.16"></a><var>187.16</var>develops, manufactures, accesses, or uses an automated sales suppression device, zapper, <br />
         		<a id="pl.187.17"></a><var>187.17</var>phantom-ware, or similar device knowing that the device or phantom-ware is capable <br />
         		<a id="pl.187.18"></a><var>187.18</var>of being used to commit tax fraud or suppress sales is guilty of a felony and may be <br />
         		<a id="pl.187.19"></a><var>187.19</var>sentenced to imprisonment for not more than five years or to a payment of a fine of not <br />
         		<a id="pl.187.20"></a><var>187.20</var>more than $10,000, or both.<br />
         		<a id="pl.187.21"></a><var>187.21</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Forfeiture.</b> An automated sales suppression device, zapper, phantom-ware, <br />
         		<a id="pl.187.22"></a><var>187.22</var>and any other device containing an automated sales suppression, zapper, or phantom-ware <br />
         		<a id="pl.187.23"></a><var>187.23</var>device or software is contraband and subject to forfeiture under section 609.5316.<br />
         		<a id="pl.187.24"></a><var>187.24</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2015, and applies to crimes <br />
         		<a id="pl.187.25"></a><var>187.25</var>committed on or after that date.<br />
         		<br />
         		<a id="bill.11.11.0"></a><a id="pl.187.26"></a><var>187.26</var>&#160;&#160;&#160;&#160;Sec. 11. <b>APPROPRIATIONS.</b><br />
         		<a id="pl.187.27"></a><var>187.27</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>New markets grant program.</b> $30,000,000 in fiscal year 2017 is <br />
         		<a id="pl.187.28"></a><var>187.28</var>appropriated from the general fund to the commissioner of employment and economic <br />
         		<a id="pl.187.29"></a><var>187.29</var>development for the new markets grant program under Minnesota Statutes, section <br />
         		<a id="pl.187.30"></a><var>187.30</var>116J.952. This appropriation is a onetime appropriation and is available until June 30, <br />
         		<a id="pl.187.31"></a><var>187.31</var>2024. The commissioner may award grants of up to $10,000,000 per fiscal year.<br />
         		<a id="pl.187.32"></a><var>187.32</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Department of Revenue.</b> $5,000,000 in fiscal year 2017 is appropriated <br />
         		<a id="pl.187.33"></a><var>187.33</var>from the general fund to the commissioner of revenue for administering this act. The <br />
         		<a id="pl.187.34"></a><var>187.34</var>funding base for this appropriation in fiscal year 2018 and thereafter is $2,000,000.<br />
         		<a id="pl.188.1"></a><var>188.1</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Tax time savings grant program.</b> (a) $400,000 is appropriated in fiscal <br />
         		<a id="pl.188.2"></a><var>188.2</var>year 2017 from the general fund to the commissioner of revenue to make grants under the <br />
         		<a id="pl.188.3"></a><var>188.3</var>tax time savings grant program under Minnesota Statutes, section 270C.22. Of this amount, <br />
         		<a id="pl.188.4"></a><var>188.4</var>up to five percent may be used for the administration of the tax time savings grant program.<br />
         		<a id="pl.188.5"></a><var>188.5</var>(b) The base funding for the grant program authorized under paragraph (a) is <br />
         		<a id="pl.188.6"></a><var>188.6</var>$400,000 each year.<br />
         		<a id="pl.188.7"></a><var>188.7</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Taxpayer assistance grants.</b> (a) $400,000 is appropriated in fiscal year <br />
         		<a id="pl.188.8"></a><var>188.8</var>2017 from the general fund to the commissioner of revenue for the provision of taxpayer <br />
         		<a id="pl.188.9"></a><var>188.9</var>assistance grants under Minnesota Statutes, section 270C.21, in addition to the current <br />
         		<a id="pl.188.10"></a><var>188.10</var>base funding for the program. Of the amount appropriated under this paragraph and the <br />
         		<a id="pl.188.11"></a><var>188.11</var>current base funding for the provision of taxpayer assistance grants, up to five percent may <br />
         		<a id="pl.188.12"></a><var>188.12</var>be used for the administration of the taxpayer assistance grants program.<br />
         		<a id="pl.188.13"></a><var>188.13</var>(b) Beginning in fiscal year 2018, the total base funding for the program under <br />
         		<a id="pl.188.14"></a><var>188.14</var>paragraph (a) is $800,000 each year. This amount includes the base funding of $400,000 <br />
         		<a id="pl.188.15"></a><var>188.15</var>each year established in Laws 2015, chapter 77, article 1, section 14, subdivision 2, <br />
         		<a id="pl.188.16"></a><var>188.16</var>paragraph (a).<br />
         		<a id="pl.188.17"></a><var>188.17</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Local government grants.</b> (a) The following amounts are appropriated in <br />
         		<a id="pl.188.18"></a><var>188.18</var>fiscal year 2016 only from the general fund to the commissioner of revenue for grants that <br />
         		<a id="pl.188.19"></a><var>188.19</var>shall be paid by June 30, 2016, and allocated as follows:<br />
         		<a id="pl.188.20"></a><var>188.20</var>(1) $1,200,000 to the city of Madelia;<br />
         		<a id="pl.188.21"></a><var>188.21</var>(2) $465,000 to the city of Hibbing; and<br />
         		<a id="pl.188.22"></a><var>188.22</var>(3) $52,288 to Stearns County.<br />
         		<a id="pl.188.23"></a><var>188.23</var>(b) The following amounts are appropriated in fiscal year 2017 only from the <br />
         		<a id="pl.188.24"></a><var>188.24</var>general fund to the commissioner of revenue for grants that shall be paid by June 30, <br />
         		<a id="pl.188.25"></a><var>188.25</var>2017, and allocated as follows:<br />
         		<a id="pl.188.26"></a><var>188.26</var>(1) $2,000,000 to Mahnomen County. Of this amount, $1,000,000 must be used <br />
         		<a id="pl.188.27"></a><var>188.27</var>by the county for the Mahnomen Health Center, and $1,000,000 must be paid from the <br />
         		<a id="pl.188.28"></a><var>188.28</var>county to the White Earth Band of Ojibwe;<br />
         		<a id="pl.188.29"></a><var>188.29</var>(2) $1,130,000 to Hennepin County. Of this amount, $730,000 must be used for the <br />
         		<a id="pl.188.30"></a><var>188.30</var>North Branch Library EMERGE Career and Technology Center, and $400,000 must be <br />
         		<a id="pl.188.31"></a><var>188.31</var>used for the Cedar Riverside Opportunity Center;<br />
         		<a id="pl.188.32"></a><var>188.32</var>(3) $1,000,000 to the city of Mahnomen; and<br />
         		<a id="pl.188.33"></a><var>188.33</var>(4) $150,000 to the city of Lilydale.<br />
         		<a id="pl.188.34"></a><var>188.34</var>(c) All of the appropriations under this subdivision are onetime and are not added <br />
         		<a id="pl.188.35"></a><var>188.35</var>to the base budget.<br />
         		<a id="pl.189.1"></a><var>189.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.0.0"></a><div class="xtend_ce"><a id="pl.189.2"></a><var>189.2</var><b>ARTICLE 12</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.189.3"></a><var>189.3</var><b>DEPARTMENT POLICY AND TECHNICAL PROVISIONS; INCOME, </b><br />
            		<a id="pl.189.4"></a><var>189.4</var><b>CORPORATE FRANCHISE, AND ESTATE TAXES</b><br />
            		
         </div><br />
         		<a id="bill.12.1.0"></a><a id="pl.189.5"></a><var>189.5</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2014, section 289A.08, subdivision 11, is amended to <br />
         		<a id="pl.189.6"></a><var>189.6</var>read:<br />
         		<a id="pl.189.7"></a><var>189.7</var>&#160;&#160;&#160;&#160;Subd. 11. <b>Information included in income tax return.</b> (a) The return must state:<br />
         		<a id="pl.189.8"></a><var>189.8</var>&#160;&#160;&#160;&#160;(1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the <br />
         		<a id="pl.189.9"></a><var>189.9</var>address of the taxpayer in the same name or names and same address as the taxpayer has <br />
         		<a id="pl.189.10"></a><var>189.10</var>used in making the taxpayer's income tax return to the United States;<br />
         		<a id="pl.189.11"></a><var>189.11</var>&#160;&#160;&#160;&#160;(2) the date or dates of birth of the taxpayer or taxpayers;<br />
         		<a id="pl.189.12"></a><var>189.12</var>&#160;&#160;&#160;&#160;(3) the Social Security number of the taxpayer, or taxpayers, if a Social Security <br />
         		<a id="pl.189.13"></a><var>189.13</var>number has been issued by the United States with respect to the taxpayers; and<br />
         		<a id="pl.189.14"></a><var>189.14</var>&#160;&#160;&#160;&#160;(4) the amount of the taxable income of the taxpayer as it appears on the federal <br />
         		<a id="pl.189.15"></a><var>189.15</var>return for the taxable year to which the Minnesota state return applies.<br />
         		<a id="pl.189.16"></a><var>189.16</var>&#160;&#160;&#160;&#160;(b) The taxpayer must attach to the taxpayer's Minnesota state income tax return <br />
         		<a id="pl.189.17"></a><var>189.17</var>a copy of the federal income tax return that the taxpayer has filed or is about to file for <br />
         		<a id="pl.189.18"></a><var>189.18</var>the period, unless the taxpayer is eligible to telefile the federal return and does file the <br />
         		<a id="pl.189.19"></a><var>189.19</var>Minnesota return by telefiling.<br />
         		<a id="pl.189.20"></a><var>189.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.2.0"></a><a id="pl.189.21"></a><var>189.21</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 289A.08, subdivision 16, is amended to read:<br />
         		<a id="pl.189.22"></a><var>189.22</var>&#160;&#160;&#160;&#160;Subd. 16. <b>Tax refund or return preparers; electronic filing; paper filing fee </b><br />
         		<a id="pl.189.23"></a><var>189.23</var><b>imposed.</b> (a) A "tax refund or return preparer," as defined in section 
         <statute_ref>289A.60, subdivision <br />
            		<a id="pl.189.24"></a><var>189.24</var>13
         </statute_ref>, paragraph (f), who is a tax return preparer for purposes of section 6011(e) of the <br />
         		<a id="pl.189.25"></a><var>189.25</var>Internal Revenue Code, and who reasonably expects to prepare more than ten Minnesota <br />
         		<a id="pl.189.26"></a><var>189.26</var>individual income, corporate franchise, S corporation, partnership, or fiduciary income tax <br />
         		<a id="pl.189.27"></a><var>189.27</var>returns for the prior calendar year must file all Minnesota individual income, corporate <br />
         		<a id="pl.189.28"></a><var>189.28</var>franchise, S corporation, partnership, or fiduciary income tax returns prepared for that <br />
         		<a id="pl.189.29"></a><var>189.29</var>calendar year by electronic means.<br />
         		<a id="pl.189.30"></a><var>189.30</var>(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return <br />
         		<a id="pl.189.31"></a><var>189.31</var>that the taxpayer did not want the return filed by electronic means.<br />
         		<a id="pl.189.32"></a><var>189.32</var>(c) For each return that is not filed electronically by a tax refund or return preparer <br />
         		<a id="pl.189.33"></a><var>189.33</var>under this subdivision, including returns filed under paragraph (b), a paper filing fee <br />
         		<a id="pl.189.34"></a><var>189.34</var>of $5 is imposed upon the preparer. The fee is collected from the preparer in the same <br />
         		<a id="pl.190.1"></a><var>190.1</var>manner as income tax. The fee does not apply to returns that the commissioner requires <br />
         		<a id="pl.190.2"></a><var>190.2</var>to be filed in paper form.<br />
         		<a id="pl.190.3"></a><var>190.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.190.4"></a><var>190.4</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.12.3.0"></a><a id="pl.190.5"></a><var>190.5</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read:<br />
         		<a id="pl.190.6"></a><var>190.6</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Withholding statement.</b> (a) A person required to deduct and withhold <br />
         		<a id="pl.190.7"></a><var>190.7</var>from an employee a tax under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision <br />
            		<a id="pl.190.8"></a><var>190.8</var>2
         </statute_ref>, or who would have been required to deduct and withhold a tax under section 
         <statute_ref>290.92, <br />
            		<a id="pl.190.9"></a><var>190.9</var>subdivision 2a
         </statute_ref> or 3, or persons required to withhold tax under section 
         <statute_ref>290.923, subdivision <br />
            		<a id="pl.190.10"></a><var>190.10</var>2
         </statute_ref>, determined without regard to section 
         <statute_ref>290.92, subdivision 19</statute_ref>, if the employee or payee <br />
         		<a id="pl.190.11"></a><var>190.11</var>had claimed no more than one withholding exemption, or who paid wages or made <br />
         		<a id="pl.190.12"></a><var>190.12</var>payments not subject to withholding under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, <br />
            		<a id="pl.190.13"></a><var>190.13</var>subdivision 2
         </statute_ref>, to an employee or person receiving royalty payments in excess of $600, <br />
         		<a id="pl.190.14"></a><var>190.14</var>or who has entered into a voluntary withholding agreement with a payee under section <br />
         		
         <statute_ref><a id="pl.190.15"></a><var>190.15</var>290.92, subdivision 20
         </statute_ref>, must give every employee or person receiving royalty payments in <br />
         		<a id="pl.190.16"></a><var>190.16</var>respect to the remuneration paid by the person to the employee or person receiving royalty <br />
         		<a id="pl.190.17"></a><var>190.17</var>payments during the calendar year, on or before January 31 of the succeeding year, or, if <br />
         		<a id="pl.190.18"></a><var>190.18</var>employment is terminated before the close of the calendar year, within 30 days after the <br />
         		<a id="pl.190.19"></a><var>190.19</var>date of receipt of a written request from the employee if the 30-day period ends before <br />
         		<a id="pl.190.20"></a><var>190.20</var>January 31, a written statement showing the following:<br />
         		<a id="pl.190.21"></a><var>190.21</var>&#160;&#160;&#160;&#160;(1) name of the person;<br />
         		<a id="pl.190.22"></a><var>190.22</var>&#160;&#160;&#160;&#160;(2) the name of the employee or payee and the employee's or payee's Social Security <br />
         		<a id="pl.190.23"></a><var>190.23</var>account number;<br />
         		<a id="pl.190.24"></a><var>190.24</var>&#160;&#160;&#160;&#160;(3) the total amount of wages as that term is defined in section 
         <statute_ref>290.92, subdivision <br />
            		<a id="pl.190.25"></a><var>190.25</var>1
         </statute_ref>, paragraph (1); the total amount of remuneration subject to withholding under section <br />
         		
         <statute_ref><a id="pl.190.26"></a><var>190.26</var>290.92, subdivision 20
         </statute_ref>; the amount of sick pay as required under section 6051(f) of the <br />
         		<a id="pl.190.27"></a><var>190.27</var>Internal Revenue Code; and the amount of royalties subject to withholding under section <br />
         		
         <statute_ref><a id="pl.190.28"></a><var>190.28</var>290.923, subdivision 2
         </statute_ref>; and<br />
         		<a id="pl.190.29"></a><var>190.29</var>&#160;&#160;&#160;&#160;(4) the total amount deducted and withheld as tax under section 
         <statute_ref>290.92, subdivision <br />
            		<a id="pl.190.30"></a><var>190.30</var>2a
         </statute_ref> or 3, or 
         <statute_ref>290.923, subdivision 2</statute_ref>.<br />
         		<a id="pl.190.31"></a><var>190.31</var>&#160;&#160;&#160;&#160;(b) The statement required to be furnished by paragraph (a) with respect to any <br />
         		<a id="pl.190.32"></a><var>190.32</var>remuneration must be furnished at those times, must contain the information required, and <br />
         		<a id="pl.190.33"></a><var>190.33</var>must be in the form the commissioner prescribes.<br />
         		<a id="pl.191.1"></a><var>191.1</var>&#160;&#160;&#160;&#160;(c) The commissioner may prescribe rules providing for reasonable extensions of <br />
         		<a id="pl.191.2"></a><var>191.2</var>time, not in excess of 30 days, to employers or payers required to give the statements to <br />
         		<a id="pl.191.3"></a><var>191.3</var>their employees or payees under this subdivision.<br />
         		<a id="pl.191.4"></a><var>191.4</var>&#160;&#160;&#160;&#160;(d) A duplicate of any statement made under this subdivision and in accordance <br />
         		<a id="pl.191.5"></a><var>191.5</var>with rules prescribed by the commissioner, along with a reconciliation in the form the <br />
         		<a id="pl.191.6"></a><var>191.6</var>commissioner prescribes of the statements for the calendar year, including a reconciliation <br />
         		<a id="pl.191.7"></a><var>191.7</var>of the quarterly returns required to be filed under subdivision 1, must be filed with the <br />
         		<a id="pl.191.8"></a><var>191.8</var>commissioner on or before February 28 January 31 of the year after the payments were <br />
         		<a id="pl.191.9"></a><var>191.9</var>made.<br />
         		<a id="pl.191.10"></a><var>191.10</var>&#160;&#160;&#160;&#160;(e) If an employer cancels the employer's Minnesota withholding account number <br />
         		<a id="pl.191.11"></a><var>191.11</var>required by section 
         <statute_ref>290.92, subdivision 24</statute_ref>, the information required by paragraph (d), <br />
         		<a id="pl.191.12"></a><var>191.12</var>must be filed with the commissioner within 30 days of the end of the quarter in which <br />
         		<a id="pl.191.13"></a><var>191.13</var>the employer cancels its account number.<br />
         		<a id="pl.191.14"></a><var>191.14</var>&#160;&#160;&#160;&#160;(f) The employer must submit the statements required to be sent to the commissioner <br />
         		<a id="pl.191.15"></a><var>191.15</var>in the same manner required to satisfy the federal reporting requirements of section <br />
         		<a id="pl.191.16"></a><var>191.16</var>6011(e) of the Internal Revenue Code and the regulations issued under it. An employer <br />
         		<a id="pl.191.17"></a><var>191.17</var>must submit statements to the commissioner required by this section by electronic means <br />
         		<a id="pl.191.18"></a><var>191.18</var>if the employer is required to send more than 25 statements to the commissioner, even <br />
         		<a id="pl.191.19"></a><var>191.19</var>though the employer is not required to submit the returns federally by electronic means. <br />
         		<a id="pl.191.20"></a><var>191.20</var>For statements issued for wages paid in 2011 and after, the threshold is ten. All statements <br />
         		<a id="pl.191.21"></a><var>191.21</var>issued for withholding required under section 
         <statute_ref>290.92</statute_ref> are aggregated for purposes of <br />
         		<a id="pl.191.22"></a><var>191.22</var>determining whether the electronic submission threshold is met. The commissioner shall <br />
         		<a id="pl.191.23"></a><var>191.23</var>prescribe the content, format, and manner of the statement pursuant to section 270C.30.<br />
         		<a id="pl.191.24"></a><var>191.24</var>&#160;&#160;&#160;&#160;(g) A "third-party bulk filer" as defined in section 
         <statute_ref>290.92, subdivision 30</statute_ref>, paragraph <br />
         		<a id="pl.191.25"></a><var>191.25</var>(a), clause (2), must submit the returns required by this subdivision and subdivision 1, <br />
         		<a id="pl.191.26"></a><var>191.26</var>paragraph (a), with the commissioner by electronic means.<br />
         		<a id="pl.191.27"></a><var>191.27</var><b>EFFECTIVE DATE.</b>This section is effective for statements required to be sent <br />
         		<a id="pl.191.28"></a><var>191.28</var>to the commissioner after December 31, 2016, except that the date change in paragraph <br />
         		<a id="pl.191.29"></a><var>191.29</var>(d) is effective for wages paid after December 31, 2015.<br />
         		<br />
         		<a id="bill.12.4.0"></a><a id="pl.191.30"></a><var>191.30</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 289A.12, subdivision 14, is amended to read:<br />
         		<a id="pl.191.31"></a><var>191.31</var>&#160;&#160;&#160;&#160;Subd. 14. <b>Regulated investment companies;</b><b> Reporting </b><b>exempt interest and </b><br />
         		<a id="pl.191.32"></a><var>191.32</var><b>exempt-interest dividends.</b> (a) A regulated investment company paying $10 or more in <br />
         		<a id="pl.191.33"></a><var>191.33</var>exempt-interest dividends to an individual who is a resident of Minnesota, or any person <br />
         		<a id="pl.191.34"></a><var>191.34</var>receiving $10 or more of exempt interest or exempt-interest dividends and paying as <br />
         		<a id="pl.191.35"></a><var>191.35</var>nominee to an individual who is a resident of Minnesota, must make a return indicating <br />
         		<a id="pl.192.1"></a><var>192.1</var>the amount of the exempt interest or exempt-interest dividends, the name, address, and <br />
         		<a id="pl.192.2"></a><var>192.2</var>Social Security number of the recipient, and any other information that the commissioner <br />
         		<a id="pl.192.3"></a><var>192.3</var>specifies. The return must be provided to the shareholder recipient by February 15 of the <br />
         		<a id="pl.192.4"></a><var>192.4</var>year following the year of the payment. The return provided to the shareholder recipient <br />
         		<a id="pl.192.5"></a><var>192.5</var>must include a clear statement, in the form prescribed by the commissioner, that the <br />
         		<a id="pl.192.6"></a><var>192.6</var>exempt interest or exempt-interest dividends must be included in the computation of <br />
         		<a id="pl.192.7"></a><var>192.7</var>Minnesota taxable income. By June 1 of each year, the regulated investment company <br />
         		<a id="pl.192.8"></a><var>192.8</var>payor must file a copy of the return with the commissioner.<br />
         		<a id="pl.192.9"></a><var>192.9</var>&#160;&#160;&#160;&#160;(b) For purposes of this subdivision, the following definitions apply.<br />
         		<a id="pl.192.10"></a><var>192.10</var>&#160;&#160;&#160;&#160;(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in <br />
         		<a id="pl.192.11"></a><var>192.11</var>section 852(b)(5) of the Internal Revenue Code, but does not include the portion of <br />
         		<a id="pl.192.12"></a><var>192.12</var>exempt-interest dividends that are not required to be added to federal taxable income <br />
         		<a id="pl.192.13"></a><var>192.13</var>under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1)(ii).<br />
         		<a id="pl.192.14"></a><var>192.14</var>&#160;&#160;&#160;&#160;(2) "Regulated investment company" means regulated investment company as <br />
         		<a id="pl.192.15"></a><var>192.15</var>defined in section 851(a) of the Internal Revenue Code or a fund of the regulated <br />
         		<a id="pl.192.16"></a><var>192.16</var>investment company as defined in section 851(g) of the Internal Revenue Code.<br />
         		<a id="pl.192.17"></a><var>192.17</var>&#160;&#160;&#160;&#160;(3) "Exempt interest" means income on obligations of any state other than <br />
         		<a id="pl.192.18"></a><var>192.18</var>Minnesota, or a political or governmental subdivision, municipality, or governmental <br />
         		<a id="pl.192.19"></a><var>192.19</var>agency or instrumentality of any state other than Minnesota, and exempt from federal <br />
         		<a id="pl.192.20"></a><var>192.20</var>income taxes under the Internal Revenue Code or any other federal statute.<br />
         		<a id="pl.192.21"></a><var>192.21</var><b>EFFECTIVE DATE.</b>This section is effective for reports required to be filed after <br />
         		<a id="pl.192.22"></a><var>192.22</var>December 31, 2016.<br />
         		<br />
         		<a id="bill.12.5.0"></a><a id="pl.192.23"></a><var>192.23</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 289A.18, is amended by adding a subdivision <br />
         		<a id="pl.192.24"></a><var>192.24</var>to read:<br />
         		<a id="pl.192.25"></a><var>192.25</var>&#160;&#160;&#160;&#160;Subd. 2a. <b>Annual withholding returns; eligible employers.</b> (a) An employer who <br />
         		<a id="pl.192.26"></a><var>192.26</var>deducts and withholds an amount required to be withheld by section 290.92 may file an <br />
         		<a id="pl.192.27"></a><var>192.27</var>annual return and make an annual payment of the amount required to be deducted and <br />
         		<a id="pl.192.28"></a><var>192.28</var>withheld for that calendar year if the employer has received a notification under paragraph <br />
         		<a id="pl.192.29"></a><var>192.29</var>(b). The ability to elect to file an annual return continues through the year following the <br />
         		<a id="pl.192.30"></a><var>192.30</var>year where an employer is required to deduct and withhold more than $500.<br />
         		<a id="pl.192.31"></a><var>192.31</var>(b) The commissioner is authorized to determine which employers are eligible to <br />
         		<a id="pl.192.32"></a><var>192.32</var>file an annual return and to notify employers who newly qualify to file an annual return <br />
         		<a id="pl.192.33"></a><var>192.33</var>because the amount an employer is required to deduct and withhold for that calendar year <br />
         		<a id="pl.192.34"></a><var>192.34</var>is $500 or less based on the most recent period of four consecutive quarters for which the <br />
         		<a id="pl.192.35"></a><var>192.35</var>commissioner has compiled data on that employer's withholding tax for that period. At the <br />
         		<a id="pl.193.1"></a><var>193.1</var>time of notification, eligible employers may still decide to file returns and make deposits <br />
         		<a id="pl.193.2"></a><var>193.2</var>quarterly. An employer who decides to file returns and make deposits quarterly is required <br />
         		<a id="pl.193.3"></a><var>193.3</var>to make all returns and deposits required by this chapter and, notwithstanding paragraph <br />
         		<a id="pl.193.4"></a><var>193.4</var>(a), is subject to all applicable penalties for failing to do so.<br />
         		<a id="pl.193.5"></a><var>193.5</var>(c) If, at the end of any calendar month other than the last month of the calendar <br />
         		<a id="pl.193.6"></a><var>193.6</var>year, the aggregate amount of undeposited tax withheld by an employer who has elected to <br />
         		<a id="pl.193.7"></a><var>193.7</var>file an annual return exceeds $500, the employer must deposit the aggregate amount with <br />
         		<a id="pl.193.8"></a><var>193.8</var>the commissioner within 30 days of the end of the calendar month.<br />
         		<a id="pl.193.9"></a><var>193.9</var>(d) If an employer who has elected to file an annual return ceases to pay wages <br />
         		<a id="pl.193.10"></a><var>193.10</var>for which withholding is required, the employer must file a final return and deposit any <br />
         		<a id="pl.193.11"></a><var>193.11</var>undeposited tax within 30 days of the end of the calendar month following the month in <br />
         		<a id="pl.193.12"></a><var>193.12</var>which the employer ceased paying wages.<br />
         		<a id="pl.193.13"></a><var>193.13</var>(e) An employer not subject to paragraph (c) or (d) who elects to file an annual <br />
         		<a id="pl.193.14"></a><var>193.14</var>return must file the return and pay the tax not previously deposited before February 1 of <br />
         		<a id="pl.193.15"></a><var>193.15</var>the year following the year in which the tax was withheld.<br />
         		<a id="pl.193.16"></a><var>193.16</var>(f) A notification to an employer regarding eligibility to file an annual return under <br />
         		<a id="pl.193.17"></a><var>193.17</var>Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).<br />
         		<a id="pl.193.18"></a><var>193.18</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.193.19"></a><var>193.19</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.12.6.0"></a><a id="pl.193.20"></a><var>193.20</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 289A.20, subdivision 2, is amended to read:<br />
         		<a id="pl.193.21"></a><var>193.21</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Withholding from wages, entertainer withholding, withholding </b><br />
         		<a id="pl.193.22"></a><var>193.22</var><b>from payments to out-of-state contractors, and withholding by partnerships, small </b><br />
         		<a id="pl.193.23"></a><var>193.23</var><b>business corporations, trusts.</b> (a) Except as provided in section 289A.18, subdivision 2a, <br />
         		<a id="pl.193.24"></a><var>193.24</var>a tax required to be deducted and withheld during the quarterly period must be paid on <br />
         		<a id="pl.193.25"></a><var>193.25</var>or before the last day of the month following the close of the quarterly period, unless an <br />
         		<a id="pl.193.26"></a><var>193.26</var>earlier time for payment is provided. A tax required to be deducted and withheld from <br />
         		<a id="pl.193.27"></a><var>193.27</var>compensation of an entertainer and from a payment to an out-of-state contractor must be <br />
         		<a id="pl.193.28"></a><var>193.28</var>paid on or before the date the return for such tax must be filed under section 
         <statute_ref>289A.18, <br />
            		<a id="pl.193.29"></a><var>193.29</var>subdivision 2
         </statute_ref>. Taxes required to be deducted and withheld by partnerships, S corporations, <br />
         		<a id="pl.193.30"></a><var>193.30</var>and trusts must be paid on a quarterly basis as estimated taxes under section 
         <statute_ref>289A.25</statute_ref> for <br />
         		<a id="pl.193.31"></a><var>193.31</var>partnerships and trusts and under section 
         <statute_ref>289A.26</statute_ref> for S corporations.<br />
         		<a id="pl.193.32"></a><var>193.32</var>(b) An employer who, during the previous quarter, withheld more than $1,500 of <br />
         		<a id="pl.193.33"></a><var>193.33</var>tax under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision 2</statute_ref>, must deposit tax <br />
         		<a id="pl.193.34"></a><var>193.34</var>withheld under those sections with the commissioner within the time allowed to deposit <br />
         		<a id="pl.193.35"></a><var>193.35</var>the employer's federal withheld employment taxes under Code of Federal Regulations, <br />
         		<a id="pl.194.1"></a><var>194.1</var>title 26, section 31.6302-1, as amended through December 31, 2001, without regard to the <br />
         		<a id="pl.194.2"></a><var>194.2</var>safe harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). <br />
         		<a id="pl.194.3"></a><var>194.3</var>Taxpayers must submit a copy of their federal notice of deposit status to the commissioner <br />
         		<a id="pl.194.4"></a><var>194.4</var>upon request by the commissioner.<br />
         		<a id="pl.194.5"></a><var>194.5</var>(c) The commissioner may prescribe by rule other return periods or deposit <br />
         		<a id="pl.194.6"></a><var>194.6</var>requirements. In prescribing the reporting period, the commissioner may classify payors <br />
         		<a id="pl.194.7"></a><var>194.7</var>according to the amount of their tax liability and may adopt an appropriate reporting <br />
         		<a id="pl.194.8"></a><var>194.8</var>period for the class that the commissioner judges to be consistent with efficient tax <br />
         		<a id="pl.194.9"></a><var>194.9</var>collection. In no event will the duration of the reporting period be more than one year.<br />
         		<a id="pl.194.10"></a><var>194.10</var>(d) If less than the correct amount of tax is paid to the commissioner, proper <br />
         		<a id="pl.194.11"></a><var>194.11</var>adjustments with respect to both the tax and the amount to be deducted must be made, <br />
         		<a id="pl.194.12"></a><var>194.12</var>without interest, in the manner and at the times the commissioner prescribes. If the <br />
         		<a id="pl.194.13"></a><var>194.13</var>underpayment cannot be adjusted, the amount of the underpayment will be assessed and <br />
         		<a id="pl.194.14"></a><var>194.14</var>collected in the manner and at the times the commissioner prescribes.<br />
         		<a id="pl.194.15"></a><var>194.15</var>(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year <br />
         		<a id="pl.194.16"></a><var>194.16</var>ending June 30, the employer must remit each required deposit for wages paid in all <br />
         		<a id="pl.194.17"></a><var>194.17</var>subsequent calendar years by electronic means.<br />
         		<a id="pl.194.18"></a><var>194.18</var>(f) A third-party bulk filer as defined in section 
         <statute_ref>290.92, subdivision 30</statute_ref>, paragraph <br />
         		<a id="pl.194.19"></a><var>194.19</var>(a), clause (2), who remits withholding deposits must remit all deposits by electronic <br />
         		<a id="pl.194.20"></a><var>194.20</var>means as provided in paragraph (e), regardless of the aggregate amount of tax withheld <br />
         		<a id="pl.194.21"></a><var>194.21</var>during a fiscal year for all of the employers.<br />
         		<a id="pl.194.22"></a><var>194.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.194.23"></a><var>194.23</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.12.7.0"></a><a id="pl.194.24"></a><var>194.24</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 289A.31, subdivision 1, is amended to read:<br />
         		<a id="pl.194.25"></a><var>194.25</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Individual income, fiduciary income, mining company, corporate </b><br />
         		<a id="pl.194.26"></a><var>194.26</var><b>franchise, and entertainment taxes.</b> (a) Individual income, fiduciary income, mining <br />
         		<a id="pl.194.27"></a><var>194.27</var>company, and corporate franchise taxes, and interest and penalties, must be paid by the <br />
         		<a id="pl.194.28"></a><var>194.28</var>taxpayer upon whom the tax is imposed, except in the following cases:<br />
         		<a id="pl.194.29"></a><var>194.29</var>(1) The tax due from a decedent for that part of the taxable year in which the <br />
         		<a id="pl.194.30"></a><var>194.30</var>decedent died during which the decedent was alive and the taxes, interest, and penalty <br />
         		<a id="pl.194.31"></a><var>194.31</var>due for the prior years must be paid by the decedent's personal representative, if any. <br />
         		<a id="pl.194.32"></a><var>194.32</var>If there is no personal representative, the taxes, interest, and penalty must be paid by <br />
         		<a id="pl.194.33"></a><var>194.33</var>the transferees, as defined in section 
         <statute_ref>270C.58, subdivision 3</statute_ref>, to the extent they receive <br />
         		<a id="pl.194.34"></a><var>194.34</var>property from the decedent;<br />
         		<a id="pl.195.1"></a><var>195.1</var>(2) The tax due from an infant or other incompetent person must be paid by the <br />
         		<a id="pl.195.2"></a><var>195.2</var>person's guardian or other person authorized or permitted by law to act for the person;<br />
         		<a id="pl.195.3"></a><var>195.3</var>(3) The tax due from the estate of a decedent must be paid by the estate's personal <br />
         		<a id="pl.195.4"></a><var>195.4</var>representative;<br />
         		<a id="pl.195.5"></a><var>195.5</var>(4) The tax due from a trust, including those within the definition of a corporation, as <br />
         		<a id="pl.195.6"></a><var>195.6</var>defined in section 
         <statute_ref>290.01, subdivision 4</statute_ref>, must be paid by a trustee; and<br />
         		<a id="pl.195.7"></a><var>195.7</var>(5) The tax due from a taxpayer whose business or property is in charge of a receiver, <br />
         		<a id="pl.195.8"></a><var>195.8</var>trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge of <br />
         		<a id="pl.195.9"></a><var>195.9</var>the business or property so far as the tax is due to the income from the business or property.<br />
         		<a id="pl.195.10"></a><var>195.10</var>(b) Entertainment taxes are the joint and several liability of the entertainer and the <br />
         		<a id="pl.195.11"></a><var>195.11</var>entertainment entity. The payor is liable to the state for the payment of the tax required to <br />
         		<a id="pl.195.12"></a><var>195.12</var>be deducted and withheld under section 
         <statute_ref>290.9201, subdivision 7</statute_ref>, and is not liable to the <br />
         		<a id="pl.195.13"></a><var>195.13</var>entertainer for the amount of the payment.<br />
         		<a id="pl.195.14"></a><var>195.14</var>(c) The tax taxes imposed under section sections 289A.35 and 
         <statute_ref>290.0922</statute_ref> on <br />
         		<a id="pl.195.15"></a><var>195.15</var>partnerships is are the joint and several liability of the partnership and the general partners.<br />
         		<a id="pl.195.16"></a><var>195.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.8.0"></a><a id="pl.195.17"></a><var>195.17</var>&#160;&#160;&#160;&#160;Sec. 8. Minnesota Statutes 2014, section 289A.35, is amended to read:<br />
         		<a id="pl.195.18"></a><var>195.18</var><b>289A.35 ASSESSMENTS ON RETURNS.</b><br />
         		<a id="pl.195.19"></a><var>195.19</var>(a) The commissioner may audit and adjust the taxpayer's computation of federal <br />
         		<a id="pl.195.20"></a><var>195.20</var>taxable income, items of federal tax preferences, or federal credit amounts to make them <br />
         		<a id="pl.195.21"></a><var>195.21</var>conform with the provisions of chapter 290 or section 
         <statute_ref>298.01</statute_ref>. If a return has been filed, <br />
         		<a id="pl.195.22"></a><var>195.22</var>the commissioner shall enter the liability reported on the return and may make any audit <br />
         		<a id="pl.195.23"></a><var>195.23</var>or investigation that is considered necessary.<br />
         		<a id="pl.195.24"></a><var>195.24</var>(b) Upon petition by a taxpayer, and when the commissioner determines that it is in <br />
         		<a id="pl.195.25"></a><var>195.25</var>the best interest of the state, the commissioner may allow S corporations and partnerships <br />
         		<a id="pl.195.26"></a><var>195.26</var>to receive orders of assessment issued under section 270C.33, subdivision 4, on behalf <br />
         		<a id="pl.195.27"></a><var>195.27</var>of their owners, and to pay liabilities shown on such orders. In such cases, the owners' <br />
         		<a id="pl.195.28"></a><var>195.28</var>liability must be calculated using the method provided in section 289A.08, subdivision 7, <br />
         		<a id="pl.195.29"></a><var>195.29</var>paragraph (b).<br />
         		<a id="pl.195.30"></a><var>195.30</var>(c) A taxpayer may petition the commissioner for the use of the method described <br />
         		<a id="pl.195.31"></a><var>195.31</var>in paragraph (b) after the taxpayer is notified that an audit has been initiated and before <br />
         		<a id="pl.195.32"></a><var>195.32</var>an order of assessment has been issued.<br />
         		<a id="pl.195.33"></a><var>195.33</var>(d) A determination of the commissioner under paragraph (b) to grant or deny the <br />
         		<a id="pl.195.34"></a><var>195.34</var>petition of a taxpayer cannot be appealed to the Tax Court or any other court.<br />
         		<a id="pl.196.1"></a><var>196.1</var>(b) (e) The commissioner may audit and adjust the taxpayer's computation of <br />
         		<a id="pl.196.2"></a><var>196.2</var>tax under chapter 291. In the case of a return filed pursuant to section 
         <statute_ref>289A.10</statute_ref>, the <br />
         		<a id="pl.196.3"></a><var>196.3</var>commissioner shall notify the estate no later than nine months after the filing date, as <br />
         		<a id="pl.196.4"></a><var>196.4</var>provided by section 
         <statute_ref>289A.38, subdivision 2</statute_ref>, whether the return is under examination <br />
         		<a id="pl.196.5"></a><var>196.5</var>or the return has been processed as filed.<br />
         		<a id="pl.196.6"></a><var>196.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.9.0"></a><a id="pl.196.7"></a><var>196.7</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2014, section 289A.60, subdivision 28, is amended to read:<br />
         		<a id="pl.196.8"></a><var>196.8</var>&#160;&#160;&#160;&#160;Subd. 28. <b>Preparer identification number.</b> Any Minnesota individual income tax <br />
         		<a id="pl.196.9"></a><var>196.9</var>return or claim for refund prepared by a "tax refund or return preparer" as defined in <br />
         		<a id="pl.196.10"></a><var>196.10</var>subdivision 13, paragraph (f), shall bear the identification number the preparer is required <br />
         		<a id="pl.196.11"></a><var>196.11</var>to use federally under section 6109(a)(4) of the Internal Revenue Code. A tax refund or <br />
         		<a id="pl.196.12"></a><var>196.12</var>return preparer who prepares a Minnesota individual income tax return return required <br />
         		<a id="pl.196.13"></a><var>196.13</var>by section 289A.08, subdivisions 1, 2, 3, and 7; or 289A.12, subdivision 3, or claim for <br />
         		<a id="pl.196.14"></a><var>196.14</var>refund and fails to include the required number on the return or claim is subject to a <br />
         		<a id="pl.196.15"></a><var>196.15</var>penalty of $50 for each failure.<br />
         		<a id="pl.196.16"></a><var>196.16</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.196.17"></a><var>196.17</var>December 31, 2015.<br />
         		<br />
         		<a id="bill.12.10.0"></a><a id="pl.196.18"></a><var>196.18</var>&#160;&#160;&#160;&#160;Sec. 10. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:<br />
         		<a id="pl.196.19"></a><var>196.19</var>&#160;&#160;&#160;&#160;Subd. 19b. <b>Subtractions from federal taxable income.</b> For individuals, estates, <br />
         		<a id="pl.196.20"></a><var>196.20</var>and trusts, there shall be subtracted from federal taxable income:<br />
         		<a id="pl.196.21"></a><var>196.21</var>&#160;&#160;&#160;&#160;(1) net interest income on obligations of any authority, commission, or <br />
         		<a id="pl.196.22"></a><var>196.22</var>instrumentality of the United States to the extent includable in taxable income for federal <br />
         		<a id="pl.196.23"></a><var>196.23</var>income tax purposes but exempt from state income tax under the laws of the United States;<br />
         		<a id="pl.196.24"></a><var>196.24</var>&#160;&#160;&#160;&#160;(2) if included in federal taxable income, the amount of any overpayment of income <br />
         		<a id="pl.196.25"></a><var>196.25</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br />
         		<a id="pl.196.26"></a><var>196.26</var>is received as a refund or as a credit to another taxable year's income tax liability;<br />
         		<a id="pl.196.27"></a><var>196.27</var>&#160;&#160;&#160;&#160;(3) the amount paid to others, less the amount used to claim the credit allowed under <br />
         		<a id="pl.196.28"></a><var>196.28</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br />
         		<a id="pl.196.29"></a><var>196.29</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br />
         		<a id="pl.196.30"></a><var>196.30</var>transportation of each qualifying child in attending an elementary or secondary school <br />
         		<a id="pl.196.31"></a><var>196.31</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br />
         		<a id="pl.196.32"></a><var>196.32</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br />
         		<a id="pl.196.33"></a><var>196.33</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br />
         		<a id="pl.197.1"></a><var>197.1</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br />
         		<a id="pl.197.2"></a><var>197.2</var>tuition as defined in section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (1). As used in this clause, <br />
         		<a id="pl.197.3"></a><var>197.3</var>"textbooks" includes books and other instructional materials and equipment purchased <br />
         		<a id="pl.197.4"></a><var>197.4</var>or leased for use in elementary and secondary schools in teaching only those subjects <br />
         		<a id="pl.197.5"></a><var>197.5</var>legally and commonly taught in public elementary and secondary schools in this state. <br />
         		<a id="pl.197.6"></a><var>197.6</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br />
         		<a id="pl.197.7"></a><var>197.7</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br />
         		<a id="pl.197.8"></a><var>197.8</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br />
         		<a id="pl.197.9"></a><var>197.9</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br />
         		<a id="pl.197.10"></a><var>197.10</var>or materials for, or transportation to, extracurricular activities including sporting events, <br />
         		<a id="pl.197.11"></a><var>197.11</var>musical or dramatic events, speech activities, driver's education, or similar programs. No <br />
         		<a id="pl.197.12"></a><var>197.12</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or <br />
         		<a id="pl.197.13"></a><var>197.13</var>the qualifying child's vehicle to provide such transportation for a qualifying child. For <br />
         		<a id="pl.197.14"></a><var>197.14</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br />
         		<a id="pl.197.15"></a><var>197.15</var>given in section 32(c)(3) of the Internal Revenue Code;<br />
         		<a id="pl.197.16"></a><var>197.16</var>&#160;&#160;&#160;&#160;(4) income as provided under section 
         <statute_ref>290.0802</statute_ref>;<br />
         		<a id="pl.197.17"></a><var>197.17</var>&#160;&#160;&#160;&#160;(5) to the extent included in federal adjusted gross income, income realized on <br />
         		<a id="pl.197.18"></a><var>197.18</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>;<br />
         		<a id="pl.197.19"></a><var>197.19</var>&#160;&#160;&#160;&#160;(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br />
         		<a id="pl.197.20"></a><var>197.20</var>of the Internal Revenue Code in determining federal taxable income by an individual <br />
         		<a id="pl.197.21"></a><var>197.21</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br />
         		<a id="pl.197.22"></a><var>197.22</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br />
         		<a id="pl.197.23"></a><var>197.23</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, <br />
         		<a id="pl.197.24"></a><var>197.24</var>under the provisions of Public Law 109-1 and Public Law 111-126;<br />
         		<a id="pl.197.25"></a><var>197.25</var>&#160;&#160;&#160;&#160;(7) for individuals who are allowed a federal foreign tax credit for taxes that do not <br />
         		<a id="pl.197.26"></a><var>197.26</var>qualify for a credit under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, an amount equal to the carryover <br />
         		<a id="pl.197.27"></a><var>197.27</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br />
         		<a id="pl.197.28"></a><var>197.28</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br />
         		<a id="pl.197.29"></a><var>197.29</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br />
         		<a id="pl.197.30"></a><var>197.30</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br />
         		<a id="pl.197.31"></a><var>197.31</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br />
         		<a id="pl.197.32"></a><var>197.32</var>the extent they exceed the federal foreign tax credit;<br />
         		<a id="pl.197.33"></a><var>197.33</var>&#160;&#160;&#160;&#160;(8) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.197.34"></a><var>197.34</var>addition is required under subdivision 19a, clause (7), or 19c, clause (12) (11), in the case of <br />
         		<a id="pl.197.35"></a><var>197.35</var>a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br />
         		<a id="pl.197.36"></a><var>197.36</var>delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount <br />
         		<a id="pl.198.1"></a><var>198.1</var>of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, <br />
         		<a id="pl.198.2"></a><var>198.2</var>clause (12) (11), in the case of a shareholder of an S corporation, minus the positive value <br />
         		<a id="pl.198.3"></a><var>198.3</var>of any net operating loss under section 172 of the Internal Revenue Code generated for the <br />
         		<a id="pl.198.4"></a><var>198.4</var>tax year of the addition. The resulting delayed depreciation cannot be less than zero;<br />
         		<a id="pl.198.5"></a><var>198.5</var>&#160;&#160;&#160;&#160;(9) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>;<br />
         		<a id="pl.198.6"></a><var>198.6</var>&#160;&#160;&#160;&#160;(10) to the extent included in federal taxable income, the amount of compensation <br />
         		<a id="pl.198.7"></a><var>198.7</var>paid to members of the Minnesota National Guard or other reserve components of the <br />
         		<a id="pl.198.8"></a><var>198.8</var>United States military for active service, including compensation for services performed <br />
         		<a id="pl.198.9"></a><var>198.9</var>under the Active Guard Reserve (AGR) program. For purposes of this clause, "active <br />
         		<a id="pl.198.10"></a><var>198.10</var>service" means (i) state active service as defined in section 
         <statute_ref>190.05, subdivision 5a</statute_ref>, clause <br />
         		<a id="pl.198.11"></a><var>198.11</var>(1); or (ii) federally funded state active service as defined in section 
         <statute_ref>190.05, subdivision <br />
            		<a id="pl.198.12"></a><var>198.12</var>5b
         </statute_ref>, and "active service" includes service performed in accordance with section 
         <statute_ref>190.08, <br />
            		<a id="pl.198.13"></a><var>198.13</var>subdivision 3
         </statute_ref>;<br />
         		<a id="pl.198.14"></a><var>198.14</var>&#160;&#160;&#160;&#160;(11) to the extent included in federal taxable income, the amount of compensation <br />
         		<a id="pl.198.15"></a><var>198.15</var>paid to Minnesota residents who are members of the armed forces of the United States <br />
         		<a id="pl.198.16"></a><var>198.16</var>or United Nations for active duty performed under United States Code, title 10; or the <br />
         		<a id="pl.198.17"></a><var>198.17</var>authority of the United Nations;<br />
         		<a id="pl.198.18"></a><var>198.18</var>&#160;&#160;&#160;&#160;(12) an amount, not to exceed $10,000, equal to qualified expenses related to a <br />
         		<a id="pl.198.19"></a><var>198.19</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br />
         		<a id="pl.198.20"></a><var>198.20</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br />
         		<a id="pl.198.21"></a><var>198.21</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br />
         		<a id="pl.198.22"></a><var>198.22</var>"human organ transplantation" means the medical procedure by which transfer of a human <br />
         		<a id="pl.198.23"></a><var>198.23</var>organ is made from the body of one person to the body of another person; "qualified <br />
         		<a id="pl.198.24"></a><var>198.24</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br />
         		<a id="pl.198.25"></a><var>198.25</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br />
         		<a id="pl.198.26"></a><var>198.26</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br />
         		<a id="pl.198.27"></a><var>198.27</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br />
         		<a id="pl.198.28"></a><var>198.28</var>individual may claim the subtraction in this clause for each instance of organ donation for <br />
         		<a id="pl.198.29"></a><var>198.29</var>transplantation during the taxable year in which the qualified expenses occur;<br />
         		<a id="pl.198.30"></a><var>198.30</var>&#160;&#160;&#160;&#160;(13) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.198.31"></a><var>198.31</var>addition is required under subdivision 19a, clause (8), or 19c, clause (13) (12), in the case <br />
         		<a id="pl.198.32"></a><var>198.32</var>of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of <br />
         		<a id="pl.198.33"></a><var>198.33</var>the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13) <br />
         		<a id="pl.198.34"></a><var>198.34</var>(12), in the case of a shareholder of a corporation that is an S corporation, minus the <br />
         		<a id="pl.198.35"></a><var>198.35</var>positive value of any net operating loss under section 172 of the Internal Revenue Code <br />
         		<a id="pl.199.1"></a><var>199.1</var>generated for the tax year of the addition. If the net operating loss exceeds the addition for <br />
         		<a id="pl.199.2"></a><var>199.2</var>the tax year, a subtraction is not allowed under this clause;<br />
         		<a id="pl.199.3"></a><var>199.3</var>&#160;&#160;&#160;&#160;(14) to the extent included in the federal taxable income of a nonresident of <br />
         		<a id="pl.199.4"></a><var>199.4</var>Minnesota, compensation paid to a service member as defined in United States Code, title <br />
         		<a id="pl.199.5"></a><var>199.5</var>10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief <br />
         		<a id="pl.199.6"></a><var>199.6</var>Act, Public Law 108-189, section 101(2);<br />
         		<a id="pl.199.7"></a><var>199.7</var>&#160;&#160;&#160;&#160;(15) to the extent included in federal taxable income, the amount of national service <br />
         		<a id="pl.199.8"></a><var>199.8</var>educational awards received from the National Service Trust under United States Code, <br />
         		<a id="pl.199.9"></a><var>199.9</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br />
         		<a id="pl.199.10"></a><var>199.10</var>program;<br />
         		<a id="pl.199.11"></a><var>199.11</var>(16) to the extent included in federal taxable income, discharge of indebtedness <br />
         		<a id="pl.199.12"></a><var>199.12</var>income resulting from reacquisition of business indebtedness included in federal taxable <br />
         		<a id="pl.199.13"></a><var>199.13</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br />
         		<a id="pl.199.14"></a><var>199.14</var>to the extent that the income was included in net income in a prior year as a result of the <br />
         		<a id="pl.199.15"></a><var>199.15</var>addition under subdivision 19a, clause (13);<br />
         		<a id="pl.199.16"></a><var>199.16</var>(17) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br />
            		<a id="pl.199.17"></a><var>199.17</var>11
         </statute_ref>, paragraph (c);<br />
         		<a id="pl.199.18"></a><var>199.18</var>(18) the amount of expenses not allowed for federal income tax purposes due <br />
         		<a id="pl.199.19"></a><var>199.19</var>to claiming the railroad track maintenance credit under section 45G(a) of the Internal <br />
         		<a id="pl.199.20"></a><var>199.20</var>Revenue Code;<br />
         		<a id="pl.199.21"></a><var>199.21</var>(19) the amount of the limitation on itemized deductions under section 68(b) of the <br />
         		<a id="pl.199.22"></a><var>199.22</var>Internal Revenue Code;<br />
         		<a id="pl.199.23"></a><var>199.23</var>(20) the amount of the phaseout of personal exemptions under section 151(d) of <br />
         		<a id="pl.199.24"></a><var>199.24</var>the Internal Revenue Code; and<br />
         		<a id="pl.199.25"></a><var>199.25</var>(21) to the extent included in federal taxable income, the amount of qualified <br />
         		<a id="pl.199.26"></a><var>199.26</var>transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal <br />
         		<a id="pl.199.27"></a><var>199.27</var>Revenue Code. The subtraction is limited to the lesser of the amount of qualified <br />
         		<a id="pl.199.28"></a><var>199.28</var>transportation fringe benefits received in excess of the limitations under section <br />
         		<a id="pl.199.29"></a><var>199.29</var>132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the <br />
         		<a id="pl.199.30"></a><var>199.30</var>maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal <br />
         		<a id="pl.199.31"></a><var>199.31</var>Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) <br />
         		<a id="pl.199.32"></a><var>199.32</var>of the Internal Revenue Code.<br />
         		<a id="pl.199.33"></a><var>199.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.11.0"></a><a id="pl.199.34"></a><var>199.34</var>&#160;&#160;&#160;&#160;Sec. 11. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:<br />
         		<a id="pl.200.1"></a><var>200.1</var>&#160;&#160;&#160;&#160;Subd. 19c. <b>Corporations; additions to federal taxable income.</b> For corporations, <br />
         		<a id="pl.200.2"></a><var>200.2</var>there shall be added to federal taxable income:<br />
         		<a id="pl.200.3"></a><var>200.3</var>&#160;&#160;&#160;&#160;(1) the amount of any deduction taken for federal income tax purposes for income, <br />
         		<a id="pl.200.4"></a><var>200.4</var>excise, or franchise taxes based on net income or related minimum taxes, including but not <br />
         		<a id="pl.200.5"></a><var>200.5</var>limited to the tax imposed under section 
         <statute_ref>290.0922</statute_ref>, paid by the corporation to Minnesota, <br />
         		<a id="pl.200.6"></a><var>200.6</var>another state, a political subdivision of another state, the District of Columbia, or any <br />
         		<a id="pl.200.7"></a><var>200.7</var>foreign country or possession of the United States;<br />
         		<a id="pl.200.8"></a><var>200.8</var>&#160;&#160;&#160;&#160;(2) interest not subject to federal tax upon obligations of: the United States, its <br />
         		<a id="pl.200.9"></a><var>200.9</var>possessions, its agencies, or its instrumentalities; the state of Minnesota or any other <br />
         		<a id="pl.200.10"></a><var>200.10</var>state, any of its political or governmental subdivisions, any of its municipalities, or any <br />
         		<a id="pl.200.11"></a><var>200.11</var>of its governmental agencies or instrumentalities; the District of Columbia; or Indian <br />
         		<a id="pl.200.12"></a><var>200.12</var>tribal governments;<br />
         		<a id="pl.200.13"></a><var>200.13</var>&#160;&#160;&#160;&#160;(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal <br />
         		<a id="pl.200.14"></a><var>200.14</var>Revenue Code;<br />
         		<a id="pl.200.15"></a><var>200.15</var>&#160;&#160;&#160;&#160;(4) the amount of any net operating loss deduction taken for federal income tax <br />
         		<a id="pl.200.16"></a><var>200.16</var>purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss <br />
         		<a id="pl.200.17"></a><var>200.17</var>deduction under section 810 of the Internal Revenue Code;<br />
         		<a id="pl.200.18"></a><var>200.18</var>&#160;&#160;&#160;&#160;(5) the amount of any special deductions taken for federal income tax purposes <br />
         		<a id="pl.200.19"></a><var>200.19</var>under sections 241 to 247 and 965 of the Internal Revenue Code;<br />
         		<a id="pl.200.20"></a><var>200.20</var>&#160;&#160;&#160;&#160;(6) losses from the business of mining, as defined in section 
         <statute_ref>290.05, subdivision 1</statute_ref>, <br />
         		<a id="pl.200.21"></a><var>200.21</var>clause (a), that are not subject to Minnesota income tax;<br />
         		<a id="pl.200.22"></a><var>200.22</var>&#160;&#160;&#160;&#160;(7) the amount of any capital losses deducted for federal income tax purposes under <br />
         		<a id="pl.200.23"></a><var>200.23</var>sections 1211 and 1212 of the Internal Revenue Code;<br />
         		<a id="pl.200.24"></a><var>200.24</var>&#160;&#160;&#160;&#160;(8) the amount of percentage depletion deducted under sections 611 through 614 and <br />
         		<a id="pl.200.25"></a><var>200.25</var>291 of the Internal Revenue Code;<br />
         		<a id="pl.200.26"></a><var>200.26</var>&#160;&#160;&#160;&#160;(9) for certified pollution control facilities placed in service in a taxable year <br />
         		<a id="pl.200.27"></a><var>200.27</var>beginning before December 31, 1986, and for which amortization deductions were elected <br />
         		<a id="pl.200.28"></a><var>200.28</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br />
         		<a id="pl.200.29"></a><var>200.29</var>31, 1985, the amount of the amortization deduction allowed in computing federal taxable <br />
         		<a id="pl.200.30"></a><var>200.30</var>income for those facilities;<br />
         		<a id="pl.200.31"></a><var>200.31</var>&#160;&#160;&#160;&#160;(10) (9) the amount of a partner's pro rata share of net income which does not flow <br />
         		<a id="pl.200.32"></a><var>200.32</var>through to the partner because the partnership elected to pay the tax on the income under <br />
         		<a id="pl.200.33"></a><var>200.33</var>section 6242(a)(2) of the Internal Revenue Code;<br />
         		<a id="pl.200.34"></a><var>200.34</var>&#160;&#160;&#160;&#160;(11) (10) any increase in subpart F income, as defined in section 952(a) of the <br />
         		<a id="pl.200.35"></a><var>200.35</var>Internal Revenue Code, for the taxable year when subpart F income is calculated without <br />
         		<a id="pl.200.36"></a><var>200.36</var>regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br />
         		<a id="pl.201.1"></a><var>201.1</var>&#160;&#160;&#160;&#160;(12) (11) 80 percent of the depreciation deduction allowed under section <br />
         		<a id="pl.201.2"></a><var>201.2</var>168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if <br />
         		<a id="pl.201.3"></a><var>201.3</var>the taxpayer has an activity that in the taxable year generates a deduction for depreciation <br />
         		<a id="pl.201.4"></a><var>201.4</var>under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable <br />
         		<a id="pl.201.5"></a><var>201.5</var>year that the taxpayer is not allowed to claim for the taxable year, "the depreciation <br />
         		<a id="pl.201.6"></a><var>201.6</var>allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess <br />
         		<a id="pl.201.7"></a><var>201.7</var>of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) <br />
         		<a id="pl.201.8"></a><var>201.8</var>over the amount of the loss from the activity that is not allowed in the taxable year. In <br />
         		<a id="pl.201.9"></a><var>201.9</var>succeeding taxable years when the losses not allowed in the taxable year are allowed, the <br />
         		<a id="pl.201.10"></a><var>201.10</var>depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;<br />
         		<a id="pl.201.11"></a><var>201.11</var>&#160;&#160;&#160;&#160;(13) (12) 80 percent of the amount by which the deduction allowed by section 179 of <br />
         		<a id="pl.201.12"></a><var>201.12</var>the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal <br />
         		<a id="pl.201.13"></a><var>201.13</var>Revenue Code of 1986, as amended through December 31, 2003;<br />
         		<a id="pl.201.14"></a><var>201.14</var>&#160;&#160;&#160;&#160;(14) (13) to the extent deducted in computing federal taxable income, the amount of <br />
         		<a id="pl.201.15"></a><var>201.15</var>the deduction allowable under section 199 of the Internal Revenue Code;<br />
         		<a id="pl.201.16"></a><var>201.16</var>&#160;&#160;&#160;&#160;(15) (14) the amount of expenses disallowed under section 
         <statute_ref>290.10, subdivision 2</statute_ref>; and<br />
         		<a id="pl.201.17"></a><var>201.17</var>(16) (15) discharge of indebtedness income resulting from reacquisition of business <br />
         		<a id="pl.201.18"></a><var>201.18</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code.<br />
         		<a id="pl.201.19"></a><var>201.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.12.0"></a><a id="pl.201.20"></a><var>201.20</var>&#160;&#160;&#160;&#160;Sec. 12. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:<br />
         		<a id="pl.201.21"></a><var>201.21</var>&#160;&#160;&#160;&#160;Subd. 19d. <b>Corporations; modifications decreasing federal taxable income.</b> For <br />
         		<a id="pl.201.22"></a><var>201.22</var>corporations, there shall be subtracted from federal taxable income after the increases <br />
         		<a id="pl.201.23"></a><var>201.23</var>provided in subdivision 19c:<br />
         		<a id="pl.201.24"></a><var>201.24</var>&#160;&#160;&#160;&#160;(1) the amount of foreign dividend gross-up added to gross income for federal <br />
         		<a id="pl.201.25"></a><var>201.25</var>income tax purposes under section 78 of the Internal Revenue Code;<br />
         		<a id="pl.201.26"></a><var>201.26</var>&#160;&#160;&#160;&#160;(2) the amount of salary expense not allowed for federal income tax purposes due to <br />
         		<a id="pl.201.27"></a><var>201.27</var>claiming the work opportunity credit under section 51 of the Internal Revenue Code;<br />
         		<a id="pl.201.28"></a><var>201.28</var>&#160;&#160;&#160;&#160;(3) any dividend (not including any distribution in liquidation) paid within the <br />
         		<a id="pl.201.29"></a><var>201.29</var>taxable year by a national or state bank to the United States, or to any instrumentality of <br />
         		<a id="pl.201.30"></a><var>201.30</var>the United States exempt from federal income taxes, on the preferred stock of the bank <br />
         		<a id="pl.201.31"></a><var>201.31</var>owned by the United States or the instrumentality;<br />
         		<a id="pl.201.32"></a><var>201.32</var>&#160;&#160;&#160;&#160;(4) the deduction for capital losses pursuant to sections 1211 and 1212 of the <br />
         		<a id="pl.201.33"></a><var>201.33</var>Internal Revenue Code, except that:<br />
         		<a id="pl.201.34"></a><var>201.34</var>&#160;&#160;&#160;&#160;(i) for capital losses incurred in taxable years beginning after December 31, 1986, <br />
         		<a id="pl.201.35"></a><var>201.35</var>capital loss carrybacks shall not be allowed;<br />
         		<a id="pl.202.1"></a><var>202.1</var>&#160;&#160;&#160;&#160;(ii) for capital losses incurred in taxable years beginning after December 31, 1986, <br />
         		<a id="pl.202.2"></a><var>202.2</var>a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be <br />
         		<a id="pl.202.3"></a><var>202.3</var>allowed;<br />
         		<a id="pl.202.4"></a><var>202.4</var>&#160;&#160;&#160;&#160;(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a <br />
         		<a id="pl.202.5"></a><var>202.5</var>capital loss carryback to each of the three taxable years preceding the loss year, subject to <br />
         		<a id="pl.202.6"></a><var>202.6</var>the provisions of Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed; and<br />
         		<a id="pl.202.7"></a><var>202.7</var>&#160;&#160;&#160;&#160;(iv) for capital losses incurred in taxable years beginning before January 1, 1987, <br />
         		<a id="pl.202.8"></a><var>202.8</var>a capital loss carryover to each of the five taxable years succeeding the loss year to the <br />
         		<a id="pl.202.9"></a><var>202.9</var>extent such loss was not used in a prior taxable year and subject to the provisions of <br />
         		<a id="pl.202.10"></a><var>202.10</var>Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed;<br />
         		<a id="pl.202.11"></a><var>202.11</var>&#160;&#160;&#160;&#160;(5) an amount for interest and expenses relating to income not taxable for federal <br />
         		<a id="pl.202.12"></a><var>202.12</var>income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and <br />
         		<a id="pl.202.13"></a><var>202.13</var>expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or <br />
         		<a id="pl.202.14"></a><var>202.14</var>291 of the Internal Revenue Code in computing federal taxable income;<br />
         		<a id="pl.202.15"></a><var>202.15</var>&#160;&#160;&#160;&#160;(6) in the case of mines, oil and gas wells, other natural deposits, and timber for <br />
         		<a id="pl.202.16"></a><var>202.16</var>which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a <br />
         		<a id="pl.202.17"></a><var>202.17</var>reasonable allowance for depletion based on actual cost. In the case of leases the deduction <br />
         		<a id="pl.202.18"></a><var>202.18</var>must be apportioned between the lessor and lessee in accordance with rules prescribed <br />
         		<a id="pl.202.19"></a><var>202.19</var>by the commissioner. In the case of property held in trust, the allowable deduction must <br />
         		<a id="pl.202.20"></a><var>202.20</var>be apportioned between the income beneficiaries and the trustee in accordance with the <br />
         		<a id="pl.202.21"></a><var>202.21</var>pertinent provisions of the trust, or if there is no provision in the instrument, on the basis <br />
         		<a id="pl.202.22"></a><var>202.22</var>of the trust's income allocable to each;<br />
         		<a id="pl.202.23"></a><var>202.23</var>&#160;&#160;&#160;&#160;(7) for certified pollution control facilities placed in service in a taxable year <br />
         		<a id="pl.202.24"></a><var>202.24</var>beginning before December 31, 1986, and for which amortization deductions were elected <br />
         		<a id="pl.202.25"></a><var>202.25</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br />
         		<a id="pl.202.26"></a><var>202.26</var>31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes <br />
         		<a id="pl.202.27"></a><var>202.27</var>1986, section 
         <statute_ref>290.09, subdivision 7</statute_ref>;<br />
         		<a id="pl.202.28"></a><var>202.28</var>&#160;&#160;&#160;&#160;(8) (7) amounts included in federal taxable income that are due to refunds of <br />
         		<a id="pl.202.29"></a><var>202.29</var>income, excise, or franchise taxes based on net income or related minimum taxes paid <br />
         		<a id="pl.202.30"></a><var>202.30</var>by the corporation to Minnesota, another state, a political subdivision of another state, <br />
         		<a id="pl.202.31"></a><var>202.31</var>the District of Columbia, or a foreign country or possession of the United States to the <br />
         		<a id="pl.202.32"></a><var>202.32</var>extent that the taxes were added to federal taxable income under subdivision 19c, clause <br />
         		<a id="pl.202.33"></a><var>202.33</var>(1), in a prior taxable year;<br />
         		<a id="pl.202.34"></a><var>202.34</var>&#160;&#160;&#160;&#160;(9) (8) income or gains from the business of mining as defined in section 
         <statute_ref>290.05, <br />
            		<a id="pl.202.35"></a><var>202.35</var>subdivision 1
         </statute_ref>, clause (a), that are not subject to Minnesota franchise tax;<br />
         		<a id="pl.203.1"></a><var>203.1</var>&#160;&#160;&#160;&#160;(10) (9) the amount of disability access expenditures in the taxable year which are not <br />
         		<a id="pl.203.2"></a><var>203.2</var>allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;<br />
         		<a id="pl.203.3"></a><var>203.3</var>&#160;&#160;&#160;&#160;(11) (10) the amount of qualified research expenses not allowed for federal income <br />
         		<a id="pl.203.4"></a><var>203.4</var>tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent <br />
         		<a id="pl.203.5"></a><var>203.5</var>that the amount exceeds the amount of the credit allowed under section 
         <statute_ref>290.068</statute_ref>;<br />
         		<a id="pl.203.6"></a><var>203.6</var>&#160;&#160;&#160;&#160;(12) (11) the amount of salary expenses not allowed for federal income tax purposes <br />
         		<a id="pl.203.7"></a><var>203.7</var>due to claiming the Indian employment credit under section 45A(a) of the Internal <br />
         		<a id="pl.203.8"></a><var>203.8</var>Revenue Code;<br />
         		<a id="pl.203.9"></a><var>203.9</var>&#160;&#160;&#160;&#160;(13) (12) any decrease in subpart F income, as defined in section 952(a) of the <br />
         		<a id="pl.203.10"></a><var>203.10</var>Internal Revenue Code, for the taxable year when subpart F income is calculated without <br />
         		<a id="pl.203.11"></a><var>203.11</var>regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br />
         		<a id="pl.203.12"></a><var>203.12</var>&#160;&#160;&#160;&#160;(14) (13) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.203.13"></a><var>203.13</var>addition is required under subdivision 19c, clause (12) (11), an amount equal to one-fifth <br />
         		<a id="pl.203.14"></a><var>203.14</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the <br />
         		<a id="pl.203.15"></a><var>203.15</var>amount of the addition made by the taxpayer under subdivision 19c, clause (12) (11). The <br />
         		<a id="pl.203.16"></a><var>203.16</var>resulting delayed depreciation cannot be less than zero;<br />
         		<a id="pl.203.17"></a><var>203.17</var>&#160;&#160;&#160;&#160;(15) (14) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.203.18"></a><var>203.18</var>addition is required under subdivision 19c, clause (13) (12), an amount equal to one-fifth <br />
         		<a id="pl.203.19"></a><var>203.19</var>of the amount of the addition;<br />
         		<a id="pl.203.20"></a><var>203.20</var>(16) (15) to the extent included in federal taxable income, discharge of indebtedness <br />
         		<a id="pl.203.21"></a><var>203.21</var>income resulting from reacquisition of business indebtedness included in federal taxable <br />
         		<a id="pl.203.22"></a><var>203.22</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br />
         		<a id="pl.203.23"></a><var>203.23</var>to the extent that the income was included in net income in a prior year as a result of the <br />
         		<a id="pl.203.24"></a><var>203.24</var>addition under subdivision 19c, clause (16) (15); and<br />
         		<a id="pl.203.25"></a><var>203.25</var>(17) (16) the amount of expenses not allowed for federal income tax purposes due <br />
         		<a id="pl.203.26"></a><var>203.26</var>to claiming the railroad track maintenance credit under section 45G(a) of the Internal <br />
         		<a id="pl.203.27"></a><var>203.27</var>Revenue Code.<br />
         		<a id="pl.203.28"></a><var>203.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.13.0"></a><a id="pl.203.29"></a><var>203.29</var>&#160;&#160;&#160;&#160;Sec. 13. Minnesota Statutes 2014, section 290.0672, subdivision 1, is amended to read:<br />
         		<a id="pl.203.30"></a><var>203.30</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br />
         		<a id="pl.203.31"></a><var>203.31</var>have the meanings given.<br />
         		<a id="pl.203.32"></a><var>203.32</var>(b) "Long-term care insurance" means a policy that:<br />
         		<a id="pl.203.33"></a><var>203.33</var>(1) qualifies for a deduction under section 213 of the Internal Revenue Code, <br />
         		<a id="pl.203.34"></a><var>203.34</var>disregarding the 7.5 percent adjusted gross income test; or meets the requirements <br />
         		<a id="pl.204.1"></a><var>204.1</var>given in section 
         <statute_ref>62A.46</statute_ref>; or provides similar coverage issued under the laws of another <br />
         		<a id="pl.204.2"></a><var>204.2</var>jurisdiction; and<br />
         		<a id="pl.204.3"></a><var>204.3</var>(2) has a lifetime long-term care benefit limit of not less than $100,000; and<br />
         		<a id="pl.204.4"></a><var>204.4</var>(3) has been offered in compliance with the inflation protection requirements of <br />
         		<a id="pl.204.5"></a><var>204.5</var>section 
         <statute_ref>62S.23</statute_ref>.<br />
         		<a id="pl.204.6"></a><var>204.6</var>(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.<br />
         		<a id="pl.204.7"></a><var>204.7</var>(d) "Premiums deducted in determining federal taxable income" means the lesser of <br />
         		<a id="pl.204.8"></a><var>204.8</var>(1) long-term care insurance premiums that qualify as deductions under section 213 of <br />
         		<a id="pl.204.9"></a><var>204.9</var>the Internal Revenue Code; and (2) the total amount deductible for medical care under <br />
         		<a id="pl.204.10"></a><var>204.10</var>section 213 of the Internal Revenue Code.<br />
         		<a id="pl.204.11"></a><var>204.11</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxable years <br />
         		<a id="pl.204.12"></a><var>204.12</var>beginning after December 31, 2012.<br />
         		<br />
         		<a id="bill.12.14.0"></a><a id="pl.204.13"></a><var>204.13</var>&#160;&#160;&#160;&#160;Sec. 14. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:<br />
         		<a id="pl.204.14"></a><var>204.14</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Definitions.</b> For purposes of this section, the following terms have the <br />
         		<a id="pl.204.15"></a><var>204.15</var>meanings given.<br />
         		<a id="pl.204.16"></a><var>204.16</var>&#160;&#160;&#160;&#160;(a) "Qualified research expenses" means (i) qualified research expenses and basic <br />
         		<a id="pl.204.17"></a><var>204.17</var>research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except <br />
         		<a id="pl.204.18"></a><var>204.18</var>it does not include expenses incurred for qualified research or basic research conducted <br />
         		<a id="pl.204.19"></a><var>204.19</var>outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue <br />
         		<a id="pl.204.20"></a><var>204.20</var>Code; and (ii) contributions to a nonprofit corporation established and operated pursuant <br />
         		<a id="pl.204.21"></a><var>204.21</var>to the provisions of chapter 317A for the purpose of promoting the establishment and <br />
         		<a id="pl.204.22"></a><var>204.22</var>expansion of business in this state, provided the contributions are invested by the nonprofit <br />
         		<a id="pl.204.23"></a><var>204.23</var>corporation for the purpose of providing funds for small, technologically innovative <br />
         		<a id="pl.204.24"></a><var>204.24</var>enterprises in Minnesota during the early stages of their development.<br />
         		<a id="pl.204.25"></a><var>204.25</var>&#160;&#160;&#160;&#160;(b) "Qualified research" means qualified research as defined in section 41(d) of the <br />
         		<a id="pl.204.26"></a><var>204.26</var>Internal Revenue Code, except that the term does not include qualified research conducted <br />
         		<a id="pl.204.27"></a><var>204.27</var>outside the state of Minnesota.<br />
         		<a id="pl.204.28"></a><var>204.28</var>&#160;&#160;&#160;&#160;(c) "Base amount" means base amount as defined in section 41(c) of the Internal <br />
         		<a id="pl.204.29"></a><var>204.29</var>Revenue Code, except that the average annual gross receipts and aggregate gross receipts <br />
         		<a id="pl.204.30"></a><var>204.30</var>must be calculated using Minnesota sales or receipts under section 
         <statute_ref>290.191</statute_ref> and the <br />
         		<a id="pl.204.31"></a><var>204.31</var>definitions contained in clauses paragraphs (a) and (b) shall apply.<br />
         		<a id="pl.204.32"></a><var>204.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.15.0"></a><a id="pl.204.33"></a><var>204.33</var>&#160;&#160;&#160;&#160;Sec. 15. Minnesota Statutes 2014, section 290.091, subdivision 3, is amended to read:<br />
         		<a id="pl.205.1"></a><var>205.1</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Exemption amount.</b> (a) For purposes of computing the alternative <br />
         		<a id="pl.205.2"></a><var>205.2</var>minimum tax, the exemption amount is, for taxable years beginning after December 31, <br />
         		<a id="pl.205.3"></a><var>205.3</var>2005, $60,000 for married couples filing joint returns, $30,000 for married individuals <br />
         		<a id="pl.205.4"></a><var>205.4</var>filing separate returns, estates, and trusts, and $45,000 for unmarried individuals.<br />
         		<a id="pl.205.5"></a><var>205.5</var>&#160;&#160;&#160;&#160;(b) The exemption amount determined under this subdivision is subject to the phase <br />
         		<a id="pl.205.6"></a><var>205.6</var>out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum <br />
         		<a id="pl.205.7"></a><var>205.7</var>taxable income as determined under this section must be substituted in the computation of <br />
         		<a id="pl.205.8"></a><var>205.8</var>the phase out.<br />
         		<a id="pl.205.9"></a><var>205.9</var>&#160;&#160;&#160;&#160;(c) For taxable years beginning after December 31, 2006, the exemption amount <br />
         		<a id="pl.205.10"></a><var>205.10</var>under paragraph (a), clause (2), must be adjusted for inflation. The commissioner shall <br />
         		<a id="pl.205.11"></a><var>205.11</var>adjust the exemption amount by the percentage determined pursuant to the provisions of <br />
         		<a id="pl.205.12"></a><var>205.12</var>section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2005" <br />
         		<a id="pl.205.13"></a><var>205.13</var>shall be substituted for the word "1992." For 2007, the commissioner shall then determine <br />
         		<a id="pl.205.14"></a><var>205.14</var>the percent change from the 12 months ending on August 31, 2005, to the 12 months <br />
         		<a id="pl.205.15"></a><var>205.15</var>ending on August 31, 2006, and in each subsequent year, from the 12 months ending on <br />
         		<a id="pl.205.16"></a><var>205.16</var>August 31, 2005, to the 12 months ending on August 31 of the year preceding the taxable <br />
         		<a id="pl.205.17"></a><var>205.17</var>year. The exemption amount as adjusted must be rounded to the nearest $10. If the amount <br />
         		<a id="pl.205.18"></a><var>205.18</var>ends in $5, it must be rounded up to the nearest $10 amount. The determination of the <br />
         		<a id="pl.205.19"></a><var>205.19</var>commissioner under this subdivision is not a rule under the Administrative Procedure Act.<br />
         		<a id="pl.205.20"></a><var>205.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.16.0"></a><a id="pl.205.21"></a><var>205.21</var>&#160;&#160;&#160;&#160;Sec. 16. Minnesota Statutes 2014, section 290.0921, subdivision 3, is amended to read:<br />
         		<a id="pl.205.22"></a><var>205.22</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Alternative minimum taxable income.</b> "Alternative minimum taxable <br />
         		<a id="pl.205.23"></a><var>205.23</var>income" is Minnesota net income as defined in section 
         <statute_ref>290.01, subdivision 19</statute_ref>, and <br />
         		<a id="pl.205.24"></a><var>205.24</var>includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), <br />
         		<a id="pl.205.25"></a><var>205.25</var>(f), and (h) of the Internal Revenue Code. If a corporation files a separate company <br />
         		<a id="pl.205.26"></a><var>205.26</var>Minnesota tax return, the minimum tax must be computed on a separate company basis. <br />
         		<a id="pl.205.27"></a><var>205.27</var>If a corporation is part of a tax group filing a unitary return, the minimum tax must be <br />
         		<a id="pl.205.28"></a><var>205.28</var>computed on a unitary basis. The following adjustments must be made.<br />
         		<a id="pl.205.29"></a><var>205.29</var>(1) The portion of the depreciation deduction allowed for federal income tax <br />
         		<a id="pl.205.30"></a><var>205.30</var>purposes under section 168(k) of the Internal Revenue Code that is required as an addition <br />
         		<a id="pl.205.31"></a><var>205.31</var>under section 
         <statute_ref>290.01, subdivision 19c</statute_ref>, clause (12) (11), is disallowed in determining <br />
         		<a id="pl.205.32"></a><var>205.32</var>alternative minimum taxable income.<br />
         		<a id="pl.205.33"></a><var>205.33</var>(2) The subtraction for depreciation allowed under section 
         <statute_ref>290.01, subdivision <br />
            		<a id="pl.205.34"></a><var>205.34</var>19d
         </statute_ref>, clause (14) (13), is allowed as a depreciation deduction in determining alternative <br />
         		<a id="pl.205.35"></a><var>205.35</var>minimum taxable income.<br />
         		<a id="pl.206.1"></a><var>206.1</var>(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) <br />
         		<a id="pl.206.2"></a><var>206.2</var>of the Internal Revenue Code does not apply.<br />
         		<a id="pl.206.3"></a><var>206.3</var>(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal <br />
         		<a id="pl.206.4"></a><var>206.4</var>Revenue Code does not apply.<br />
         		<a id="pl.206.5"></a><var>206.5</var>(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue <br />
         		<a id="pl.206.6"></a><var>206.6</var>Code does not apply.<br />
         		<a id="pl.206.7"></a><var>206.7</var>(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal <br />
         		<a id="pl.206.8"></a><var>206.8</var>Revenue Code does not apply.<br />
         		<a id="pl.206.9"></a><var>206.9</var>(7) The tax preference for charitable contributions of appreciated property under <br />
         		<a id="pl.206.10"></a><var>206.10</var>section 57(a)(6) of the Internal Revenue Code does not apply.<br />
         		<a id="pl.206.11"></a><var>206.11</var>(8) For purposes of calculating the adjustment for adjusted current earnings in <br />
         		<a id="pl.206.12"></a><var>206.12</var>section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable <br />
         		<a id="pl.206.13"></a><var>206.13</var>income" as it is used in section 56(g) of the Internal Revenue Code, means alternative <br />
         		<a id="pl.206.14"></a><var>206.14</var>minimum taxable income as defined in this subdivision, determined without regard to the <br />
         		<a id="pl.206.15"></a><var>206.15</var>adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.<br />
         		<a id="pl.206.16"></a><var>206.16</var>(9) For purposes of determining the amount of adjusted current earnings under <br />
         		<a id="pl.206.17"></a><var>206.17</var>section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section <br />
         		<a id="pl.206.18"></a><var>206.18</var>56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend <br />
         		<a id="pl.206.19"></a><var>206.19</var>gross-up subtracted as provided in section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, clause (1), or (ii) the <br />
         		<a id="pl.206.20"></a><var>206.20</var>amount of refunds of income, excise, or franchise taxes subtracted as provided in section <br />
         		
         <statute_ref><a id="pl.206.21"></a><var>206.21</var>290.01, subdivision 19d
         </statute_ref>, clause (8) (7).<br />
         		<a id="pl.206.22"></a><var>206.22</var>(10) Alternative minimum taxable income excludes the income from operating in a <br />
         		<a id="pl.206.23"></a><var>206.23</var>job opportunity building zone as provided under section 
         <statute_ref>469.317</statute_ref>.<br />
         		<a id="pl.206.24"></a><var>206.24</var>Items of tax preference must not be reduced below zero as a result of the <br />
         		<a id="pl.206.25"></a><var>206.25</var>modifications in this subdivision.<br />
         		<a id="pl.206.26"></a><var>206.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.17.0"></a><a id="pl.206.27"></a><var>206.27</var>&#160;&#160;&#160;&#160;Sec. 17. Minnesota Statutes 2014, section 290.17, subdivision 2, is amended to read:<br />
         		<a id="pl.206.28"></a><var>206.28</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Income not derived from conduct of a trade or business.</b> The income of <br />
         		<a id="pl.206.29"></a><var>206.29</var>a taxpayer subject to the allocation rules that is not derived from the conduct of a trade or <br />
         		<a id="pl.206.30"></a><var>206.30</var>business must be assigned in accordance with paragraphs (a) to (f):<br />
         		<a id="pl.206.31"></a><var>206.31</var>&#160;&#160;&#160;&#160;(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in <br />
         		<a id="pl.206.32"></a><var>206.32</var>section 3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the <br />
         		<a id="pl.206.33"></a><var>206.33</var>extent that, the work of the employee is performed within it; all other income from such <br />
         		<a id="pl.206.34"></a><var>206.34</var>sources is treated as income from sources without this state.<br />
         		<a id="pl.207.1"></a><var>207.1</var>&#160;&#160;&#160;&#160;Severance pay shall be considered income from labor or personal or professional <br />
         		<a id="pl.207.2"></a><var>207.2</var>services.<br />
         		<a id="pl.207.3"></a><var>207.3</var>&#160;&#160;&#160;&#160;(2) In the case of an individual who is a nonresident of Minnesota and who is an <br />
         		<a id="pl.207.4"></a><var>207.4</var>athlete or entertainer, income from compensation for labor or personal services performed <br />
         		<a id="pl.207.5"></a><var>207.5</var>within this state shall be determined in the following manner:<br />
         		<a id="pl.207.6"></a><var>207.6</var>&#160;&#160;&#160;&#160;(i) The amount of income to be assigned to Minnesota for an individual who is a <br />
         		<a id="pl.207.7"></a><var>207.7</var>nonresident salaried athletic team employee shall be determined by using a fraction in <br />
         		<a id="pl.207.8"></a><var>207.8</var>which the denominator contains the total number of days in which the individual is under <br />
         		<a id="pl.207.9"></a><var>207.9</var>a duty to perform for the employer, and the numerator is the total number of those days <br />
         		<a id="pl.207.10"></a><var>207.10</var>spent in Minnesota. For purposes of this paragraph, off-season training activities, unless <br />
         		<a id="pl.207.11"></a><var>207.11</var>conducted at the team's facilities as part of a team imposed program, are not included in <br />
         		<a id="pl.207.12"></a><var>207.12</var>the total number of duty days. Bonuses earned as a result of play during the regular season <br />
         		<a id="pl.207.13"></a><var>207.13</var>or for participation in championship, play-off, or all-star games must be allocated under <br />
         		<a id="pl.207.14"></a><var>207.14</var>the formula. Signing bonuses are not subject to allocation under the formula if they are <br />
         		<a id="pl.207.15"></a><var>207.15</var>not conditional on playing any games for the team, are payable separately from any other <br />
         		<a id="pl.207.16"></a><var>207.16</var>compensation, and are nonrefundable; and<br />
         		<a id="pl.207.17"></a><var>207.17</var>&#160;&#160;&#160;&#160;(ii) The amount of income to be assigned to Minnesota for an individual who is a <br />
         		<a id="pl.207.18"></a><var>207.18</var>nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's <br />
         		<a id="pl.207.19"></a><var>207.19</var>athletic or entertainment performance in Minnesota shall be determined by assigning to <br />
         		<a id="pl.207.20"></a><var>207.20</var>this state all income from performances or athletic contests in this state.<br />
         		<a id="pl.207.21"></a><var>207.21</var>&#160;&#160;&#160;&#160;(3) For purposes of this section, amounts received by a nonresident as "retirement <br />
         		<a id="pl.207.22"></a><var>207.22</var>income" as defined in section (b)(1) of the State Income Taxation of Pension Income <br />
         		<a id="pl.207.23"></a><var>207.23</var>Act, Public Law 104-95, are not considered income derived from carrying on a trade <br />
         		<a id="pl.207.24"></a><var>207.24</var>or business or from wages or other compensation for work an employee performed in <br />
         		<a id="pl.207.25"></a><var>207.25</var>Minnesota, and are not taxable under this chapter.<br />
         		<a id="pl.207.26"></a><var>207.26</var>&#160;&#160;&#160;&#160;(b) Income or gains from tangible property located in this state that is not employed <br />
         		<a id="pl.207.27"></a><var>207.27</var>in the business of the recipient of the income or gains must be assigned to this state.<br />
         		<a id="pl.207.28"></a><var>207.28</var>&#160;&#160;&#160;&#160;(c) Income or gains from intangible personal property not employed in the business <br />
         		<a id="pl.207.29"></a><var>207.29</var>of the recipient of the income or gains must be assigned to this state if the recipient of the <br />
         		<a id="pl.207.30"></a><var>207.30</var>income or gains is a resident of this state or is a resident trust or estate.<br />
         		<a id="pl.207.31"></a><var>207.31</var>&#160;&#160;&#160;&#160;Gain on the sale of a partnership interest is allocable to this state in the ratio of the <br />
         		<a id="pl.207.32"></a><var>207.32</var>original cost of partnership tangible property in this state to the original cost of partnership <br />
         		<a id="pl.207.33"></a><var>207.33</var>tangible property everywhere, determined at the time of the sale. If more than 50 percent <br />
         		<a id="pl.207.34"></a><var>207.34</var>of the value of the partnership's assets consists of intangibles, gain or loss from the sale <br />
         		<a id="pl.207.35"></a><var>207.35</var>of the partnership interest is allocated to this state in accordance with the sales factor of <br />
         		<a id="pl.208.1"></a><var>208.1</var>the partnership for its first full tax period immediately preceding the tax period of the <br />
         		<a id="pl.208.2"></a><var>208.2</var>partnership during which the partnership interest was sold.<br />
         		<a id="pl.208.3"></a><var>208.3</var>Gain on the sale of an interest in a single member limited liability company that <br />
         		<a id="pl.208.4"></a><var>208.4</var>is disregarded for federal income tax purposes is allocable to this state as if the single <br />
         		<a id="pl.208.5"></a><var>208.5</var>member limited liability company did not exist and the assets of the limited liability <br />
         		<a id="pl.208.6"></a><var>208.6</var>company are personally owned by the sole member.<br />
         		<a id="pl.208.7"></a><var>208.7</var>&#160;&#160;&#160;&#160;Gain on the sale of goodwill or income from a covenant not to compete that is <br />
         		<a id="pl.208.8"></a><var>208.8</var>connected with a business operating all or partially in Minnesota is allocated to this state <br />
         		<a id="pl.208.9"></a><var>208.9</var>to the extent that the income from the business in the year preceding the year of sale was <br />
         		<a id="pl.208.10"></a><var>208.10</var>assignable allocable to Minnesota under subdivision 3.<br />
         		<a id="pl.208.11"></a><var>208.11</var>&#160;&#160;&#160;&#160;When an employer pays an employee for a covenant not to compete, the income <br />
         		<a id="pl.208.12"></a><var>208.12</var>allocated to this state is in the ratio of the employee's service in Minnesota in the calendar <br />
         		<a id="pl.208.13"></a><var>208.13</var>year preceding leaving the employment of the employer over the total services performed <br />
         		<a id="pl.208.14"></a><var>208.14</var>by the employee for the employer in that year.<br />
         		<a id="pl.208.15"></a><var>208.15</var>&#160;&#160;&#160;&#160;(d) Income from winnings on a bet made by an individual while in Minnesota is <br />
         		<a id="pl.208.16"></a><var>208.16</var>assigned to this state. In this paragraph, "bet" has the meaning given in section 
         <statute_ref>609.75, <br />
            		<a id="pl.208.17"></a><var>208.17</var>subdivision 2
         </statute_ref>, as limited by section 
         <statute_ref>609.75, subdivision 3</statute_ref>, clauses (1), (2), and (3).<br />
         		<a id="pl.208.18"></a><var>208.18</var>&#160;&#160;&#160;&#160;(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the <br />
         		<a id="pl.208.19"></a><var>208.19</var>taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.<br />
         		<a id="pl.208.20"></a><var>208.20</var>&#160;&#160;&#160;&#160;(f) For the purposes of this section, working as an employee shall not be considered <br />
         		<a id="pl.208.21"></a><var>208.21</var>to be conducting a trade or business.<br />
         		<a id="pl.208.22"></a><var>208.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.18.0"></a><a id="pl.208.23"></a><var>208.23</var>&#160;&#160;&#160;&#160;Sec. 18. Minnesota Statutes 2014, section 290.31, subdivision 1, is amended to read:<br />
         		<a id="pl.208.24"></a><var>208.24</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Partners, not partnership, subject to tax.</b> Except as provided <br />
         		<a id="pl.208.25"></a><var>208.25</var>under section 289A.35, paragraph (b), a partnership as such shall not be subject to the <br />
         		<a id="pl.208.26"></a><var>208.26</var>income tax imposed by this chapter, but is subject to the tax imposed under section <br />
         		
         <statute_ref><a id="pl.208.27"></a><var>208.27</var>290.0922
         </statute_ref>. Persons carrying on business as partners shall be liable for income tax only <br />
         		<a id="pl.208.28"></a><var>208.28</var>in their separate or individual capacities.<br />
         		<a id="pl.208.29"></a><var>208.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.19.0"></a><a id="pl.208.30"></a><var>208.30</var>&#160;&#160;&#160;&#160;Sec. 19. Minnesota Statutes 2014, section 290A.19, is amended to read:<br />
         		<a id="pl.208.31"></a><var>208.31</var><b>290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT </b><br />
         		<a id="pl.208.32"></a><var>208.32</var><b>CERTIFICATE.</b><br />
         		<a id="pl.209.1"></a><var>209.1</var>(a) The owner or managing agent of any property for which rent is paid for <br />
         		<a id="pl.209.2"></a><var>209.2</var>occupancy as a homestead must furnish a certificate of rent paid to a person who is a <br />
         		<a id="pl.209.3"></a><var>209.3</var>renter on December 31, in the form prescribed by the commissioner. If the renter moves <br />
         		<a id="pl.209.4"></a><var>209.4</var>before December 31, the owner or managing agent may give the certificate to the renter <br />
         		<a id="pl.209.5"></a><var>209.5</var>at the time of moving, or mail the certificate to the forwarding address if an address has <br />
         		<a id="pl.209.6"></a><var>209.6</var>been provided by the renter. The certificate must be made available to the renter before <br />
         		<a id="pl.209.7"></a><var>209.7</var>February 1 of the year following the year in which the rent was paid. The owner or <br />
         		<a id="pl.209.8"></a><var>209.8</var>managing agent must retain a duplicate of each certificate or an equivalent record showing <br />
         		<a id="pl.209.9"></a><var>209.9</var>the same information for a period of three years. The duplicate or other record must be <br />
         		<a id="pl.209.10"></a><var>209.10</var>made available to the commissioner upon request.<br />
         		<a id="pl.209.11"></a><var>209.11</var>(b) The commissioner may require the owner or managing agent, through a <br />
         		<a id="pl.209.12"></a><var>209.12</var>simple process, to furnish to the commissioner on or before March 1 a copy of each <br />
         		<a id="pl.209.13"></a><var>209.13</var>certificate of rent paid furnished to a renter for rent paid in the prior year, in the content, <br />
         		<a id="pl.209.14"></a><var>209.14</var>format, and manner prescribed by the commissioner pursuant to section 270C.30. Prior <br />
         		<a id="pl.209.15"></a><var>209.15</var>to implementation, the commissioner, after consulting with representatives of owners <br />
         		<a id="pl.209.16"></a><var>209.16</var>or managing agents, shall develop an implementation and administration plan for the <br />
         		<a id="pl.209.17"></a><var>209.17</var>requirements of this paragraph that attempts to minimize financial burdens, administration <br />
         		<a id="pl.209.18"></a><var>209.18</var>and compliance costs, and takes into consideration existing systems of owners and <br />
         		<a id="pl.209.19"></a><var>209.19</var>managing agents.<br />
         		<a id="pl.209.20"></a><var>209.20</var>(c) For the purposes of this section, "owner" includes a park owner as defined under <br />
         		<a id="pl.209.21"></a><var>209.21</var>section 
         <statute_ref>327C.01, subdivision 6</statute_ref>, and "property" includes a lot as defined under section <br />
         		
         <statute_ref><a id="pl.209.22"></a><var>209.22</var>327C.01, subdivision 3
         </statute_ref>.<br />
         		<a id="pl.209.23"></a><var>209.23</var><b>EFFECTIVE DATE.</b>This section is effective for certificates of rent paid furnished <br />
         		<a id="pl.209.24"></a><var>209.24</var>to a renter for rent paid after December 31, 2015.<br />
         		<br />
         		<a id="bill.12.20.0"></a><a id="pl.209.25"></a><var>209.25</var>&#160;&#160;&#160;&#160;Sec. 20. Minnesota Statutes 2014, section 291.016, subdivision 2, is amended to read:<br />
         		<a id="pl.209.26"></a><var>209.26</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Additions.</b> The following amounts, to the extent deducted in computing <br />
         		<a id="pl.209.27"></a><var>209.27</var>or otherwise excluded from the federal taxable estate, must be added in computing the <br />
         		<a id="pl.209.28"></a><var>209.28</var>Minnesota taxable estate:<br />
         		<a id="pl.209.29"></a><var>209.29</var>(1) the amount of the deduction for state death taxes allowed under section 2058 of <br />
         		<a id="pl.209.30"></a><var>209.30</var>the Internal Revenue Code;<br />
         		<a id="pl.209.31"></a><var>209.31</var>(2) the amount of the deduction for foreign death taxes allowed under section <br />
         		<a id="pl.209.32"></a><var>209.32</var>2053(d) of the Internal Revenue Code; and<br />
         		<a id="pl.209.33"></a><var>209.33</var>(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal <br />
         		<a id="pl.209.34"></a><var>209.34</var>Revenue Code, made by the decedent within three years of the date of death. For purposes <br />
         		<a id="pl.210.1"></a><var>210.1</var>of this clause, the amount of the addition equals the value of the gift under section 2512 of <br />
         		<a id="pl.210.2"></a><var>210.2</var>the Internal Revenue Code and excludes any value of the gift included in the federal estate.<br />
         		<a id="pl.210.3"></a><var>210.3</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br />
         		<a id="pl.210.4"></a><var>210.4</var>dying after June 30, 2013.<br />
         		<br />
         		<a id="bill.12.21.0"></a><a id="pl.210.5"></a><var>210.5</var>&#160;&#160;&#160;&#160;Sec. 21. Minnesota Statutes 2014, section 291.016, subdivision 3, is amended to read:<br />
         		<a id="pl.210.6"></a><var>210.6</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Subtraction.</b> The following amounts, to the extent included in computing <br />
         		<a id="pl.210.7"></a><var>210.7</var>the federal taxable estate, may be subtracted in computing the Minnesota taxable estate <br />
         		<a id="pl.210.8"></a><var>210.8</var>but must not reduce the Minnesota taxable estate to less than zero:<br />
         		<a id="pl.210.9"></a><var>210.9</var>(1) the value of property subject to an election under section 291.03, subdivision <br />
         		<a id="pl.210.10"></a><var>210.10</var>1d; and<br />
         		<a id="pl.210.11"></a><var>210.11</var>(2) the value of qualified small business property under section 
         <statute_ref>291.03, subdivision <br />
            		<a id="pl.210.12"></a><var>210.12</var>9
         </statute_ref>, and the value of qualified farm property under section 
         <statute_ref>291.03, subdivision 10</statute_ref>, or the <br />
         		<a id="pl.210.13"></a><var>210.13</var>result of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5) <br />
         		<a id="pl.210.14"></a><var>210.14</var>items (i) to (v), whichever is less, may be subtracted in computing the Minnesota taxable <br />
         		<a id="pl.210.15"></a><var>210.15</var>estate but must not reduce the Minnesota taxable estate to less than zero:<br />
         		<a id="pl.210.16"></a><var>210.16</var>(1) (i) $1,200,000 for estates of decedents dying in 2014;<br />
         		<a id="pl.210.17"></a><var>210.17</var>(2) (ii) $1,400,000 for estates of decedents dying in 2015;<br />
         		<a id="pl.210.18"></a><var>210.18</var>(3) (iii) $1,600,000 for estates of decedents dying in 2016;<br />
         		<a id="pl.210.19"></a><var>210.19</var>(4) (iv) $1,800,000 for estates of decedents dying in 2017; and<br />
         		<a id="pl.210.20"></a><var>210.20</var>(5) (v) $2,000,000 for estates of decedents dying in 2018 and thereafter.<br />
         		<a id="pl.210.21"></a><var>210.21</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br />
         		<a id="pl.210.22"></a><var>210.22</var>dying after June 30, 2011.<br />
         		<br />
         		<a id="bill.12.22.0"></a><a id="pl.210.23"></a><var>210.23</var>&#160;&#160;&#160;&#160;Sec. 22. Minnesota Statutes 2014, section 291.03, subdivision 9, is amended to read:<br />
         		<a id="pl.210.24"></a><var>210.24</var>&#160;&#160;&#160;&#160;Subd. 9. <b>Qualified small business property.</b> Property satisfying all of the following <br />
         		<a id="pl.210.25"></a><var>210.25</var>requirements is qualified small business property:<br />
         		<a id="pl.210.26"></a><var>210.26</var>(1) The value of the property was included in the federal adjusted taxable estate.<br />
         		<a id="pl.210.27"></a><var>210.27</var>(2) The property consists of the assets of a trade or business or shares of stock or other <br />
         		<a id="pl.210.28"></a><var>210.28</var>ownership interests in a corporation or other entity engaged in a trade or business. Shares <br />
         		<a id="pl.210.29"></a><var>210.29</var>of stock in a corporation or an ownership interest in another type of entity do not qualify <br />
         		<a id="pl.210.30"></a><var>210.30</var>under this subdivision if the shares or ownership interests are traded on a public stock <br />
         		<a id="pl.210.31"></a><var>210.31</var>exchange at any time during the three-year period ending on the decedent's date of death. <br />
         		<a id="pl.210.32"></a><var>210.32</var>For purposes of this subdivision, an ownership interest includes the interest the decedent <br />
         		<a id="pl.210.33"></a><var>210.33</var>is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.<br />
         		<a id="pl.211.1"></a><var>211.1</var>(3) During the taxable year that ended before the decedent's death, the trade or <br />
         		<a id="pl.211.2"></a><var>211.2</var>business must not have been a passive activity within the meaning of section 469(c) of the <br />
         		<a id="pl.211.3"></a><var>211.3</var>Internal Revenue Code, and the decedent or the decedent's spouse must have materially <br />
         		<a id="pl.211.4"></a><var>211.4</var>participated in the trade or business within the meaning of section 469(h) of the Internal <br />
         		<a id="pl.211.5"></a><var>211.5</var>Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other <br />
         		<a id="pl.211.6"></a><var>211.6</var>provision provided by United States Treasury Department regulation that substitutes <br />
         		<a id="pl.211.7"></a><var>211.7</var>material participation in prior taxable years for material participation in the taxable year <br />
         		<a id="pl.211.8"></a><var>211.8</var>that ended before the decedent's death.<br />
         		<a id="pl.211.9"></a><var>211.9</var>(4) The gross annual sales of the trade or business were $10,000,000 or less for the <br />
         		<a id="pl.211.10"></a><var>211.10</var>last taxable year that ended before the date of the death of the decedent.<br />
         		<a id="pl.211.11"></a><var>211.11</var>(5) The property does not consist of include:<br />
         		<a id="pl.211.12"></a><var>211.12</var>(i) cash,;<br />
         		<a id="pl.211.13"></a><var>211.13</var>(ii) cash equivalents,;<br />
         		<a id="pl.211.14"></a><var>211.14</var>(iii) publicly traded securities,; or<br />
         		<a id="pl.211.15"></a><var>211.15</var>(iv) any assets not used in the operation of the trade or business.<br />
         		<a id="pl.211.16"></a><var>211.16</var>(6) For property consisting of shares of stock or other ownership interests in an <br />
         		<a id="pl.211.17"></a><var>211.17</var>entity, the value of cash, cash equivalents, publicly traded securities, or assets not used <br />
         		<a id="pl.211.18"></a><var>211.18</var>in the operation of the trade or business held by the corporation or other entity items <br />
         		<a id="pl.211.19"></a><var>211.19</var>described in clause (5) must be deducted from the value of the property qualifying under <br />
         		<a id="pl.211.20"></a><var>211.20</var>this subdivision in proportion to the decedent's share of ownership of the entity on the date <br />
         		<a id="pl.211.21"></a><var>211.21</var>of death excluded in the valuation of the decedent's interest in the entity.<br />
         		<a id="pl.211.22"></a><var>211.22</var>(6) (7) The decedent continuously owned the property, including property the <br />
         		<a id="pl.211.23"></a><var>211.23</var>decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue <br />
         		<a id="pl.211.24"></a><var>211.24</var>Code, for the three-year period ending on the date of death of the decedent. In the case of <br />
         		<a id="pl.211.25"></a><var>211.25</var>a sole proprietor, if the property replaced similar property within the three-year period, <br />
         		<a id="pl.211.26"></a><var>211.26</var>the replacement property will be treated as having been owned for the three-year period <br />
         		<a id="pl.211.27"></a><var>211.27</var>ending on the date of death of the decedent.<br />
         		<a id="pl.211.28"></a><var>211.28</var>(7) (8) For three years following the date of death of the decedent, the trade or business <br />
         		<a id="pl.211.29"></a><var>211.29</var>is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, <br />
         		<a id="pl.211.30"></a><var>211.30</var>and a family member materially participates in the operation of the trade or business within <br />
         		<a id="pl.211.31"></a><var>211.31</var>the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) <br />
         		<a id="pl.211.32"></a><var>211.32</var>of the Internal Revenue Code and any other provision provided by United States Treasury <br />
         		<a id="pl.211.33"></a><var>211.33</var>Department regulation that substitutes material participation in prior taxable years for <br />
         		<a id="pl.211.34"></a><var>211.34</var>material participation in the three years following the date of death of the decedent.<br />
         		<a id="pl.212.1"></a><var>212.1</var>(8) (9) The estate and the qualified heir elect to treat the property as qualified small <br />
         		<a id="pl.212.2"></a><var>212.2</var>business property and agree, in the form prescribed by the commissioner, to pay the <br />
         		<a id="pl.212.3"></a><var>212.3</var>recapture tax under subdivision 11, if applicable.<br />
         		<a id="pl.212.4"></a><var>212.4</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br />
         		<a id="pl.212.5"></a><var>212.5</var>dying after June 30, 2011.<br />
         		<br />
         		<a id="bill.12.23.0"></a><a id="pl.212.6"></a><var>212.6</var>&#160;&#160;&#160;&#160;Sec. 23. Minnesota Statutes 2014, section 291.03, subdivision 11, is amended to read:<br />
         		<a id="pl.212.7"></a><var>212.7</var>&#160;&#160;&#160;&#160;Subd. 11. <b>Recapture tax.</b> (a) If, within three years after the decedent's death and <br />
         		<a id="pl.212.8"></a><var>212.8</var>before the death of the qualified heir, the qualified heir disposes of any interest in the <br />
         		<a id="pl.212.9"></a><var>212.9</var>qualified property, other than by a disposition to a family member, or a family member <br />
         		<a id="pl.212.10"></a><var>212.10</var>ceases to satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an <br />
         		<a id="pl.212.11"></a><var>212.11</var>additional estate tax is imposed on the property. In the case of a sole proprietor, if the <br />
         		<a id="pl.212.12"></a><var>212.12</var>qualified heir replaces qualified small business property excluded under subdivision 9 <br />
         		<a id="pl.212.13"></a><var>212.13</var>with similar property, then the qualified heir will not be treated as having disposed of an <br />
         		<a id="pl.212.14"></a><var>212.14</var>interest in the qualified property.<br />
         		<a id="pl.212.15"></a><var>212.15</var>(b) The amount of the additional tax equals the amount of the exclusion claimed by <br />
         		<a id="pl.212.16"></a><var>212.16</var>the estate under subdivision 8, paragraph (d), multiplied by 16 percent.<br />
         		<a id="pl.212.17"></a><var>212.17</var>(c) The additional tax under this subdivision is due on the day which is six months <br />
         		<a id="pl.212.18"></a><var>212.18</var>after the date of the disposition or cessation in paragraph (a).<br />
         		<a id="pl.212.19"></a><var>212.19</var>(d) This subdivision shall not apply as a result of any of the following:<br />
         		<a id="pl.212.20"></a><var>212.20</var>(1) a portion of qualified farm property consisting of less than one-fifth of the acreage <br />
         		<a id="pl.212.21"></a><var>212.21</var>of the property is reclassified as class 2b property under section 273.13, subdivision 23, <br />
         		<a id="pl.212.22"></a><var>212.22</var>and the qualified heir has not substantially altered the reclassified property during the <br />
         		<a id="pl.212.23"></a><var>212.23</var>three-year holding period; or<br />
         		<a id="pl.212.24"></a><var>212.24</var>(2) a portion of qualified farm property classified as 2a property at the death of <br />
         		<a id="pl.212.25"></a><var>212.25</var>the decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a <br />
         		<a id="pl.212.26"></a><var>212.26</var>residence, garage, and immediately surrounding one acre of land is reclassified as 4bb <br />
         		<a id="pl.212.27"></a><var>212.27</var>property during the three-year holding period, and the qualified heir has not substantially <br />
         		<a id="pl.212.28"></a><var>212.28</var>altered the property.<br />
         		<a id="pl.212.29"></a><var>212.29</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br />
         		<a id="pl.212.30"></a><var>212.30</var>dying after June 30, 2011.<br />
         		<br />
         		<a id="bill.12.24.0"></a><a id="pl.212.31"></a><var>212.31</var>&#160;&#160;&#160;&#160;Sec. 24. Minnesota Statutes 2014, section 291.031, is amended to read:<br />
         		<a id="pl.212.32"></a><var>212.32</var><b>291.031 CREDIT.</b><br />
         		<a id="pl.213.1"></a><var>213.1</var>(a) The estate of a nonresident decedent that is subject to tax under this chapter on <br />
         		<a id="pl.213.2"></a><var>213.2</var>the value of Minnesota situs property held in a pass-through entity is allowed a credit <br />
         		<a id="pl.213.3"></a><var>213.3</var>against the tax due under section 
         <statute_ref>291.03 </statute_ref>equal to the lesser of:<br />
         		<a id="pl.213.4"></a><var>213.4</var>(1) the amount of estate or inheritance tax paid to another state that is attributable to <br />
         		<a id="pl.213.5"></a><var>213.5</var>the Minnesota situs property held in the pass-through entity; or<br />
         		<a id="pl.213.6"></a><var>213.6</var>(2) the amount of tax paid under this section due under section 291.03 attributable to <br />
         		<a id="pl.213.7"></a><var>213.7</var>the Minnesota situs property held in the pass-through entity.<br />
         		<a id="pl.213.8"></a><var>213.8</var>(b) The amount of tax attributable to the Minnesota situs property held in the <br />
         		<a id="pl.213.9"></a><var>213.9</var>pass-through entity must be determined by the increase in the estate or inheritance tax that <br />
         		<a id="pl.213.10"></a><var>213.10</var>results from including the market value of the property in the estate or treating the value <br />
         		<a id="pl.213.11"></a><var>213.11</var>as a taxable inheritance to the recipient of the property.<br />
         		<a id="pl.213.12"></a><var>213.12</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br />
         		<a id="pl.213.13"></a><var>213.13</var>dying after December 31, 2013.<br />
         		<br />
         		<a id="bill.12.25.0"></a><a id="pl.213.14"></a><var>213.14</var>&#160;&#160;&#160;&#160;Sec. 25. <b> REPEALER.</b><br />
         		<a id="pl.213.15"></a><var>213.15</var>(a) Minnesota Rules, part 8092.1400, is repealed.<br />
         		<a id="pl.213.16"></a><var>213.16</var>(b) Minnesota Rules, part 8092.2000, is repealed.<br />
         		<a id="pl.213.17"></a><var>213.17</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for taxable years beginning after <br />
         		<a id="pl.213.18"></a><var>213.18</var>December 31, 2015, except that notifications from the Department of Revenue to <br />
         		<a id="pl.213.19"></a><var>213.19</var>employers regarding eligibility to file an annual return for taxes withheld in calendar year <br />
         		<a id="pl.213.20"></a><var>213.20</var>2016 remain in force. Paragraph (b) is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.0.0"></a><div class="xtend_ce"><a id="pl.213.21"></a><var>213.21</var><b>ARTICLE 13</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.213.22"></a><var>213.22</var><b>DEPARTMENT POLICY AND TECHNICAL PROVISIONS; SPECIAL </b><br />
            		<a id="pl.213.23"></a><var>213.23</var><b>TAXES AND SALES TAXES</b><br />
            		
         </div><br />
         		<a id="bill.13.1.0"></a><a id="pl.213.24"></a><var>213.24</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2014, section 69.021, subdivision 5, is amended to read:<br />
         		<a id="pl.213.25"></a><var>213.25</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Calculation of state aid.</b> (a) The amount of fire state aid available for <br />
         		<a id="pl.213.26"></a><var>213.26</var>apportionment, before the addition of the minimum fire state aid allocation amount under <br />
         		<a id="pl.213.27"></a><var>213.27</var>subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state <br />
         		<a id="pl.213.28"></a><var>213.28</var>upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to <br />
         		<a id="pl.213.29"></a><var>213.29</var>the commissioner by insurers on the Minnesota Firetown Premium Report. This amount <br />
         		<a id="pl.213.30"></a><var>213.30</var>must be reduced by the amount required to pay the state auditor's costs and expenses of <br />
         		<a id="pl.213.31"></a><var>213.31</var>the audits or exams of the firefighters relief associations.<br />
         		<a id="pl.213.32"></a><var>213.32</var>The total amount for apportionment in respect to fire state aid must not be less than <br />
         		<a id="pl.213.33"></a><var>213.33</var>two percent of the premiums reported to the commissioner by insurers on the Minnesota <br />
         		<a id="pl.213.34"></a><var>213.34</var>Firetown Premium Report after subtracting the following amounts:<br />
         		<a id="pl.214.1"></a><var>214.1</var>(1) the amount required to pay the state auditor's costs and expenses of the audits or <br />
         		<a id="pl.214.2"></a><var>214.2</var>exams of the firefighters relief associations; and<br />
         		<a id="pl.214.3"></a><var>214.3</var>(2) one percent of the premiums reported by town and farmers' township mutual <br />
         		<a id="pl.214.4"></a><var>214.4</var>insurance companies and mutual property and casualty companies with total assets of <br />
         		<a id="pl.214.5"></a><var>214.5</var>$5,000,000 or less.<br />
         		<a id="pl.214.6"></a><var>214.6</var>(b) The total amount for apportionment as police state aid is equal to 104 percent <br />
         		<a id="pl.214.7"></a><var>214.7</var>of the amount of premium taxes paid to the state on the premiums reported to the <br />
         		<a id="pl.214.8"></a><var>214.8</var>commissioner by insurers on the Minnesota Aid to Police Premium Report. The total <br />
         		<a id="pl.214.9"></a><var>214.9</var>amount for apportionment in respect to the police state aid program must not be less than <br />
         		<a id="pl.214.10"></a><var>214.10</var>two percent of the amount of premiums reported to the commissioner by insurers on the <br />
         		<a id="pl.214.11"></a><var>214.11</var>Minnesota Aid to Police Premium Report.<br />
         		<a id="pl.214.12"></a><var>214.12</var>(c) The commissioner shall calculate the percentage of increase or decrease reflected <br />
         		<a id="pl.214.13"></a><var>214.13</var>in the apportionment over or under the previous year's available state aid using the same <br />
         		<a id="pl.214.14"></a><var>214.14</var>premiums as a basis for comparison.<br />
         		<a id="pl.214.15"></a><var>214.15</var>(d) In addition to the amount for apportionment of police state aid under paragraph <br />
         		<a id="pl.214.16"></a><var>214.16</var>(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to <br />
         		<a id="pl.214.17"></a><var>214.17</var>pay this increase is annually appropriated from the general fund.<br />
         		<a id="pl.214.18"></a><var>214.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.2.0"></a><a id="pl.214.19"></a><var>214.19</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 289A.38, subdivision 6, is amended to read:<br />
         		<a id="pl.214.20"></a><var>214.20</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Omission in excess of 25 percent.</b> Additional taxes may be assessed <br />
         		<a id="pl.214.21"></a><var>214.21</var>within 6-1/2 years after the due date of the return or the date the return was filed, <br />
         		<a id="pl.214.22"></a><var>214.22</var>whichever is later, if:<br />
         		<a id="pl.214.23"></a><var>214.23</var>(1) the taxpayer omits from gross income an amount properly includable in it that is <br />
         		<a id="pl.214.24"></a><var>214.24</var>in excess of 25 percent of the amount of gross income stated in the return;<br />
         		<a id="pl.214.25"></a><var>214.25</var>(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a <br />
         		<a id="pl.214.26"></a><var>214.26</var>tax imposed under section 295.52, an amount of taxes in excess of 25 percent of the <br />
         		<a id="pl.214.27"></a><var>214.27</var>taxes reported in the return; or<br />
         		<a id="pl.214.28"></a><var>214.28</var>(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the <br />
         		<a id="pl.214.29"></a><var>214.29</var>gross estate reported in the return.<br />
         		<a id="pl.214.30"></a><var>214.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.3.0"></a><a id="pl.214.31"></a><var>214.31</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 290.0922, subdivision 2, is amended to read:<br />
         		<a id="pl.214.32"></a><var>214.32</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Exemptions.</b> The following entities are exempt from the tax imposed <br />
         		<a id="pl.214.33"></a><var>214.33</var>by this section:<br />
         		<a id="pl.215.1"></a><var>215.1</var>(1) corporations exempt from tax under section 
         <statute_ref>290.05</statute_ref>;<br />
         		<a id="pl.215.2"></a><var>215.2</var>(2) real estate investment trusts;<br />
         		<a id="pl.215.3"></a><var>215.3</var>(3) regulated investment companies or a fund thereof; and<br />
         		<a id="pl.215.4"></a><var>215.4</var>(4) entities having a valid election in effect under section 860D(b) of the Internal <br />
         		<a id="pl.215.5"></a><var>215.5</var>Revenue Code;<br />
         		<a id="pl.215.6"></a><var>215.6</var>(5) town and farmers' township mutual insurance companies;<br />
         		<a id="pl.215.7"></a><var>215.7</var>(6) cooperatives organized under chapter 308A or 308B that provide housing <br />
         		<a id="pl.215.8"></a><var>215.8</var>exclusively to persons age 55 and over and are classified as homesteads under section <br />
         		
         <statute_ref><a id="pl.215.9"></a><var>215.9</var>273.124, subdivision 3
         </statute_ref>; and<br />
         		<a id="pl.215.10"></a><var>215.10</var>(7) a qualified business as defined under section 
         <statute_ref>469.310, subdivision 11</statute_ref>, if for the <br />
         		<a id="pl.215.11"></a><var>215.11</var>taxable year all of its property is located in a job opportunity building zone designated <br />
         		<a id="pl.215.12"></a><var>215.12</var>under section 
         <statute_ref>469.314</statute_ref> and all of its payroll is a job opportunity building zone payroll <br />
         		<a id="pl.215.13"></a><var>215.13</var>under section 
         <statute_ref>469.310</statute_ref>.<br />
         		<a id="pl.215.14"></a><var>215.14</var>Entities not specifically exempted by this subdivision are subject to tax under this <br />
         		<a id="pl.215.15"></a><var>215.15</var>section, notwithstanding section 
         <statute_ref>290.05</statute_ref>.<br />
         		<a id="pl.215.16"></a><var>215.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.4.0"></a><a id="pl.215.17"></a><var>215.17</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 295.54, subdivision 2, is amended to read:<br />
         		<a id="pl.215.18"></a><var>215.18</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Pharmacy refund.</b> A pharmacy may claim an annual refund against <br />
         		<a id="pl.215.19"></a><var>215.19</var>the total amount of tax, if any, the pharmacy owes during that calendar year under <br />
         		<a id="pl.215.20"></a><var>215.20</var>section 
         <statute_ref>295.52, subdivision</statute_ref> 4. The refund shall equal the amount paid by the pharmacy <br />
         		<a id="pl.215.21"></a><var>215.21</var>to a wholesale drug distributor subject to tax under section 
         <statute_ref>295.52, subdivision 3</statute_ref>, for <br />
         		<a id="pl.215.22"></a><var>215.22</var>legend drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax <br />
         		<a id="pl.215.23"></a><var>215.23</var>percentage specified in section 
         <statute_ref>295.52</statute_ref>, subdivision 3. If the amount of the refund exceeds <br />
         		<a id="pl.215.24"></a><var>215.24</var>the tax liability of the pharmacy under section 
         <statute_ref>295.52, subdivision</statute_ref> 4, the commissioner <br />
         		<a id="pl.215.25"></a><var>215.25</var>shall provide the pharmacy with a refund equal to the excess amount. Each qualifying <br />
         		<a id="pl.215.26"></a><var>215.26</var>pharmacy must apply for the refund on the annual return as provided under section <br />
         		<a id="pl.215.27"></a><var>215.27</var><statute_ref>295.55, subdivision 5</statute_ref> prescribed by the commissioner, on or before March 15 of the year <br />
         		<a id="pl.215.28"></a><var>215.28</var>following the calendar year the legend drugs were delivered outside Minnesota. The <br />
         		<a id="pl.215.29"></a><var>215.29</var>refund must be claimed within 18 months from the date the drugs were delivered outside <br />
         		<a id="pl.215.30"></a><var>215.30</var>of Minnesota shall not be allowed if the initial claim for refund is filed more than one year <br />
         		<a id="pl.215.31"></a><var>215.31</var>after the original due date of the return. Interest on refunds paid under this subdivision <br />
         		<a id="pl.215.32"></a><var>215.32</var>will begin to accrue 60 days after the date a claim for refund is filed. For purposes of this <br />
         		<a id="pl.215.33"></a><var>215.33</var>subdivision, the date a claim is filed is the due date of the return if a return is due or the <br />
         		<a id="pl.215.34"></a><var>215.34</var>date of the actual claim for refund, whichever is later.<br />
         		<a id="pl.216.1"></a><var>216.1</var><b>EFFECTIVE DATE.</b>This section is effective for qualifying legend drugs delivered <br />
         		<a id="pl.216.2"></a><var>216.2</var>outside Minnesota after December 31, 2015.<br />
         		<br />
         		<a id="bill.13.5.0"></a><a id="pl.216.3"></a><var>216.3</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision <br />
         		<a id="pl.216.4"></a><var>216.4</var>to read:<br />
         		<a id="pl.216.5"></a><var>216.5</var>&#160;&#160;&#160;&#160;Subd. 9a. <b>Bulk storage or bulk storage facility.</b> "Bulk storage" or "bulk storage <br />
         		<a id="pl.216.6"></a><var>216.6</var>facility" means a single property, or contiguous or adjacent properties used for a common <br />
         		<a id="pl.216.7"></a><var>216.7</var>purpose and owned or operated by the same person, on or in which are located one or more <br />
         		<a id="pl.216.8"></a><var>216.8</var>stationary tanks that are used singularly or in combination for the storage or containment <br />
         		<a id="pl.216.9"></a><var>216.9</var>of more than 1,100 gallons of petroleum.<br />
         		<a id="pl.216.10"></a><var>216.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.6.0"></a><a id="pl.216.11"></a><var>216.11</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 296A.01, subdivision 33, is amended to read:<br />
         		<a id="pl.216.12"></a><var>216.12</var>&#160;&#160;&#160;&#160;Subd. 33. <b>Motor fuel.</b> "Motor fuel" means a liquid or gaseous form of fuel, <br />
         		<a id="pl.216.13"></a><var>216.13</var>regardless of its composition or properties, used to propel a motor vehicle.<br />
         		<a id="pl.216.14"></a><var>216.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.7.0"></a><a id="pl.216.15"></a><var>216.15</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 296A.01, subdivision 42, is amended to read:<br />
         		<a id="pl.216.16"></a><var>216.16</var>&#160;&#160;&#160;&#160;Subd. 42. <b>Petroleum products.</b> "Petroleum products" means all of the products <br />
         		<a id="pl.216.17"></a><var>216.17</var>defined in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.<br />
         		<a id="pl.216.18"></a><var>216.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.8.0"></a><a id="pl.216.19"></a><var>216.19</var>&#160;&#160;&#160;&#160;Sec. 8. Minnesota Statutes 2014, section 296A.07, subdivision 1, is amended to read:<br />
         		<a id="pl.216.20"></a><var>216.20</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Tax imposed.</b> There is imposed an excise tax on gasoline, gasoline <br />
         		<a id="pl.216.21"></a><var>216.21</var>blended with ethanol, and agricultural alcohol gasoline used in producing and generating <br />
         		<a id="pl.216.22"></a><var>216.22</var>power for propelling motor vehicles used on the public highways of this state. The tax <br />
         		<a id="pl.216.23"></a><var>216.23</var>is imposed on the first licensed distributor who received the product in Minnesota. For <br />
         		<a id="pl.216.24"></a><var>216.24</var>purposes of this section, gasoline is defined in section 
         <statute_ref>296A.01, subdivisions 8b, 10, 18, <br />
            		<a id="pl.216.25"></a><var>216.25</var>20, 23, 24, 25, 32, and 34
         </statute_ref>. The tax is payable at the time and in the form and manner <br />
         		<a id="pl.216.26"></a><var>216.26</var>prescribed by the commissioner. The tax is payable at the rates specified in subdivision 3, <br />
         		<a id="pl.216.27"></a><var>216.27</var>subject to the exceptions and reductions specified in section 
         <statute_ref>296A.17</statute_ref>.<br />
         		<a id="pl.216.28"></a><var>216.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.9.0"></a><a id="pl.216.29"></a><var>216.29</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2014, section 297A.61, subdivision 10, is amended to read:<br />
         		<a id="pl.217.1"></a><var>217.1</var>&#160;&#160;&#160;&#160;Subd. 10. <b>Tangible personal property.</b> (a) "Tangible personal property" means <br />
         		<a id="pl.217.2"></a><var>217.2</var>personal property that can be seen, weighed, measured, felt, or touched, or that is in any <br />
         		<a id="pl.217.3"></a><var>217.3</var>other manner perceptible to the senses. "Tangible personal property" includes, but is not <br />
         		<a id="pl.217.4"></a><var>217.4</var>limited to, electricity, water, gas, steam, and prewritten computer software.<br />
         		<a id="pl.217.5"></a><var>217.5</var>&#160;&#160;&#160;&#160;(b) Tangible personal property does not include:<br />
         		<a id="pl.217.6"></a><var>217.6</var>&#160;&#160;&#160;&#160;(1) large ponderous machinery and equipment used in a business or production <br />
         		<a id="pl.217.7"></a><var>217.7</var>activity which at common law would be considered to be real property;<br />
         		<a id="pl.217.8"></a><var>217.8</var>&#160;&#160;&#160;&#160;(2) (1) property which is subject to an ad valorem property tax;<br />
         		<a id="pl.217.9"></a><var>217.9</var>&#160;&#160;&#160;&#160;(3) (2) property described in section 
         <statute_ref>272.02, subdivision 9</statute_ref>, clauses (a) to (d);<br />
         		<a id="pl.217.10"></a><var>217.10</var>&#160;&#160;&#160;&#160;(4) (3) property described in section 
         <statute_ref>272.03, subdivision 2</statute_ref>, clauses (3) and (5); and<br />
         		<a id="pl.217.11"></a><var>217.11</var>(5) (4) specified digital products, or other digital products, transferred electronically.<br />
         		<a id="pl.217.12"></a><var>217.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.10.0"></a><a id="pl.217.13"></a><var>217.13</var>&#160;&#160;&#160;&#160;Sec. 10. Minnesota Statutes 2014, section 297A.82, subdivision 4, is amended to read:<br />
         		<a id="pl.217.14"></a><var>217.14</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Exemptions.</b> (a) The following transactions are exempt from the tax <br />
         		<a id="pl.217.15"></a><var>217.15</var>imposed in this chapter to the extent provided.<br />
         		<a id="pl.217.16"></a><var>217.16</var>(b) The purchase or use of aircraft previously registered in Minnesota by a <br />
         		<a id="pl.217.17"></a><var>217.17</var>corporation or partnership is exempt if the transfer constitutes a transfer within the <br />
         		<a id="pl.217.18"></a><var>217.18</var>meaning of section 351 or 721 of the Internal Revenue Code.<br />
         		<a id="pl.217.19"></a><var>217.19</var>(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer <br />
         		<a id="pl.217.20"></a><var>217.20</var>of an aircraft for which a commercial use permit has been issued pursuant to section <br />
         		
         <statute_ref><a id="pl.217.21"></a><var>217.21</var>360.654
         </statute_ref> is exempt, if the aircraft is resold while the permit is in effect.<br />
         		<a id="pl.217.22"></a><var>217.22</var>(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by <br />
         		<a id="pl.217.23"></a><var>217.23</var>airline companies, as defined in section 
         <statute_ref>270.071, subdivision 4</statute_ref>, is exempt. For purposes <br />
         		<a id="pl.217.24"></a><var>217.24</var>of this subdivision, "air flight equipment" includes airplanes and parts necessary for the <br />
         		<a id="pl.217.25"></a><var>217.25</var>repair and maintenance of such air flight equipment, and flight simulators, but does not <br />
         		<a id="pl.217.26"></a><var>217.26</var>include airplanes aircraft with a gross maximum takeoff weight of less than 30,000 pounds <br />
         		<a id="pl.217.27"></a><var>217.27</var>that are used on intermittent or irregularly timed flights.<br />
         		<a id="pl.217.28"></a><var>217.28</var>(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined <br />
         		<a id="pl.217.29"></a><var>217.29</var>in section 
         <statute_ref>360.511</statute_ref> and approved by the Federal Aviation Administration, and which the <br />
         		<a id="pl.217.30"></a><var>217.30</var>seller delivers to a purchaser outside Minnesota or which, without intermediate use, is <br />
         		<a id="pl.217.31"></a><var>217.31</var>shipped or transported outside Minnesota by the purchaser are exempt, but only if the <br />
         		<a id="pl.217.32"></a><var>217.32</var>purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter <br />
         		<a id="pl.217.33"></a><var>217.33</var>returned to a point within Minnesota, except in the course of interstate commerce or <br />
         		<a id="pl.217.34"></a><var>217.34</var>isolated and occasional use, and will be registered in another state or country upon its <br />
         		<a id="pl.217.35"></a><var>217.35</var>removal from Minnesota. This exemption applies even if the purchaser takes possession of <br />
         		<a id="pl.218.1"></a><var>218.1</var>the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes <br />
         		<a id="pl.218.2"></a><var>218.2</var>for a period not to exceed ten days prior to removing the aircraft from this state.<br />
         		<a id="pl.218.3"></a><var>218.3</var>(f) The sale or purchase of the following items that relate to aircraft operated under <br />
         		<a id="pl.218.4"></a><var>218.4</var>Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: <br />
         		<a id="pl.218.5"></a><var>218.5</var>equipment and parts necessary for repair and maintenance of aircraft; and equipment <br />
         		<a id="pl.218.6"></a><var>218.6</var>and parts to upgrade and improve aircraft.<br />
         		<a id="pl.218.7"></a><var>218.7</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.218.8"></a><var>218.8</var>December 31, 2016.<br />
         		<br />
         		<a id="bill.13.11.0"></a><a id="pl.218.9"></a><var>218.9</var>&#160;&#160;&#160;&#160;Sec. 11. Minnesota Statutes 2014, section 297A.82, subdivision 4a, is amended to read:<br />
         		<a id="pl.218.10"></a><var>218.10</var>&#160;&#160;&#160;&#160;Subd. 4a. <b>Deposit in state airports fund.</b> Tax revenue, including interest and <br />
         		<a id="pl.218.11"></a><var>218.11</var>penalties, collected from the sale or purchase of an aircraft taxable under this chapter must <br />
         		<a id="pl.218.12"></a><var>218.12</var>be deposited in the state airports fund established in section 
         <statute_ref>360.017</statute_ref>. For purposes of this <br />
         		<a id="pl.218.13"></a><var>218.13</var>subdivision, "revenue" does not include the revenue, including interest and penalties, <br />
         		<a id="pl.218.14"></a><var>218.14</var>generated by the sales tax imposed under section 297A.62, subdivision 1a, which must be <br />
         		<a id="pl.218.15"></a><var>218.15</var>deposited as provided under article XI, section 15, of the Minnesota Constitution.<br />
         		<a id="pl.218.16"></a><var>218.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.12.0"></a><a id="pl.218.17"></a><var>218.17</var>&#160;&#160;&#160;&#160;Sec. 12. Minnesota Statutes 2014, section 297E.02, subdivision 7, is amended to read:<br />
         		<a id="pl.218.18"></a><var>218.18</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Untaxed gambling product.</b> (a) In addition to penalties or criminal <br />
         		<a id="pl.218.19"></a><var>218.19</var>sanctions imposed by this chapter, a person, organization, or business entity possessing or <br />
         		<a id="pl.218.20"></a><var>218.20</var>selling a pull-tab, electronic pull-tab game, or tipboard upon which the tax imposed by <br />
         		<a id="pl.218.21"></a><var>218.21</var>this chapter has not been paid is liable for a tax of six percent of the ideal gross of each <br />
         		<a id="pl.218.22"></a><var>218.22</var>pull-tab, electronic pull-tab game, or tipboard. The tax on a partial deal must be assessed <br />
         		<a id="pl.218.23"></a><var>218.23</var>as if it were a full deal.<br />
         		<a id="pl.218.24"></a><var>218.24</var>(b) In addition to penalties and criminal sanctions imposed by this chapter, a person <br />
         		<a id="pl.218.25"></a><var>218.25</var>(1) not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, <br />
         		<a id="pl.218.26"></a><var>218.26</var>raffles, or paddlewheel games, or (2) who conducts gambling prohibited under sections <br />
         		<a id="pl.218.27"></a><var>218.27</var>609.75 to 609.763, other than activities subject to tax under section 297E.03, is liable for a <br />
         		<a id="pl.218.28"></a><var>218.28</var>tax of six percent of the gross receipts from that activity.<br />
         		<a id="pl.218.29"></a><var>218.29</var>(c) The tax must may be assessed by the commissioner. An assessment must be <br />
         		<a id="pl.218.30"></a><var>218.30</var>considered a jeopardy assessment or jeopardy collection as provided in section 
         <statute_ref>270C.36</statute_ref>. <br />
         		<a id="pl.218.31"></a><var>218.31</var>The commissioner shall assess the tax based on personal knowledge or information <br />
         		<a id="pl.218.32"></a><var>218.32</var>available to the commissioner. The commissioner shall mail to the taxpayer at the <br />
         		<a id="pl.218.33"></a><var>218.33</var>taxpayer's last known address, or serve in person, a written notice of the amount of tax, <br />
         		<a id="pl.219.1"></a><var>219.1</var>demand its immediate payment, and, if payment is not immediately made, collect the tax <br />
         		<a id="pl.219.2"></a><var>219.2</var>by any method described in chapter 270C, except that the commissioner need not await the <br />
         		<a id="pl.219.3"></a><var>219.3</var>expiration of the times specified in chapter 270C. The tax assessed by the commissioner <br />
         		<a id="pl.219.4"></a><var>219.4</var>is presumed to be valid and correctly determined and assessed. The burden is upon the <br />
         		<a id="pl.219.5"></a><var>219.5</var>taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision <br />
         		<a id="pl.219.6"></a><var>219.6</var>does not apply to gambling that is exempt from taxation under subdivision 2.<br />
         		<a id="pl.219.7"></a><var>219.7</var>(d) A person, organization, or business entity conducting gambling activity under <br />
         		<a id="pl.219.8"></a><var>219.8</var>this subdivision must file monthly tax returns with the commissioner, in the form required <br />
         		<a id="pl.219.9"></a><var>219.9</var>by the commissioner. The returns must be filed on or before the 20th day of the month <br />
         		<a id="pl.219.10"></a><var>219.10</var>following the month in which the gambling activity occurred. The tax imposed by this <br />
         		<a id="pl.219.11"></a><var>219.11</var>section is due and payable at the time when the returns are required to be filed.<br />
         		<a id="pl.219.12"></a><var>219.12</var>(e) Notwithstanding any law to the contrary, neither the commissioner nor a public <br />
         		<a id="pl.219.13"></a><var>219.13</var>employee may reveal facts contained in a tax return filed with the commissioner of <br />
         		<a id="pl.219.14"></a><var>219.14</var>revenue as required by this subdivision, nor can any information contained in the report or <br />
         		<a id="pl.219.15"></a><var>219.15</var>return be used against the tax obligor in any criminal proceeding, unless independently <br />
         		<a id="pl.219.16"></a><var>219.16</var>obtained, except in connection with a proceeding involving taxes due under this section, <br />
         		<a id="pl.219.17"></a><var>219.17</var>or as provided in section 270C.055, subdivision 1. However, this paragraph does not <br />
         		<a id="pl.219.18"></a><var>219.18</var>prohibit the commissioner from publishing statistics that do not disclose the identity of <br />
         		<a id="pl.219.19"></a><var>219.19</var>tax obligors or the contents of particular returns or reports. Any person violating this <br />
         		<a id="pl.219.20"></a><var>219.20</var>paragraph is guilty of a gross misdemeanor.<br />
         		<a id="pl.219.21"></a><var>219.21</var><b>EFFECTIVE DATE.</b>This section is effective for games played or purchased after <br />
         		<a id="pl.219.22"></a><var>219.22</var>June 30, 2016.<br />
         		<br />
         		<a id="bill.13.13.0"></a><a id="pl.219.23"></a><var>219.23</var>&#160;&#160;&#160;&#160;Sec. 13. Minnesota Statutes 2014, section 297H.06, subdivision 2, is amended to read:<br />
         		<a id="pl.219.24"></a><var>219.24</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Materials.</b> The tax is not imposed upon charges to generators of mixed <br />
         		<a id="pl.219.25"></a><var>219.25</var>municipal solid waste or upon the volume of nonmixed municipal solid waste for waste <br />
         		<a id="pl.219.26"></a><var>219.26</var>management services to manage the following materials:<br />
         		<a id="pl.219.27"></a><var>219.27</var>(1) mixed municipal solid waste and nonmixed municipal solid waste generated <br />
         		<a id="pl.219.28"></a><var>219.28</var>outside of Minnesota;<br />
         		<a id="pl.219.29"></a><var>219.29</var>(2) recyclable materials that are separated for recycling by the generator, collected <br />
         		<a id="pl.219.30"></a><var>219.30</var>separately from other waste, and recycled, to the extent the price of the service for <br />
         		<a id="pl.219.31"></a><var>219.31</var>handling recyclable material is separately itemized on a bill to the generator;<br />
         		<a id="pl.219.32"></a><var>219.32</var>(3) recyclable nonmixed municipal solid waste that is separated for recycling by <br />
         		<a id="pl.219.33"></a><var>219.33</var>the generator, collected separately from other waste, delivered to a waste facility for the <br />
         		<a id="pl.219.34"></a><var>219.34</var>purpose of recycling, and recycled;<br />
         		<a id="pl.220.1"></a><var>220.1</var>(4) industrial waste, when it is transported to a facility owned and operated by <br />
         		<a id="pl.220.2"></a><var>220.2</var>the same person that generated it;<br />
         		<a id="pl.220.3"></a><var>220.3</var>(5) mixed municipal solid waste from a recycling facility that separates or processes <br />
         		<a id="pl.220.4"></a><var>220.4</var>recyclable materials and reduces the volume of the waste by at least 85 percent, provided <br />
         		<a id="pl.220.5"></a><var>220.5</var>that the exempted waste is managed separately from other waste;<br />
         		<a id="pl.220.6"></a><var>220.6</var>(6) recyclable materials that are separated from mixed municipal solid waste by the <br />
         		<a id="pl.220.7"></a><var>220.7</var>generator, collected and delivered to a waste facility that recycles at least 85 percent of its <br />
         		<a id="pl.220.8"></a><var>220.8</var>waste, and are collected with mixed municipal solid waste that is segregated in leakproof <br />
         		<a id="pl.220.9"></a><var>220.9</var>bags, provided that the mixed municipal solid waste does not exceed five percent of the <br />
         		<a id="pl.220.10"></a><var>220.10</var>total weight of the materials delivered to the facility and is ultimately delivered to a waste <br />
         		<a id="pl.220.11"></a><var>220.11</var>facility identified as a preferred waste management facility in county solid waste plans <br />
         		<a id="pl.220.12"></a><var>220.12</var>under section 
         <statute_ref>115A.46</statute_ref>;<br />
         		<a id="pl.220.13"></a><var>220.13</var>(7) source-separated compostable waste materials, if the waste is materials are <br />
         		<a id="pl.220.14"></a><var>220.14</var>delivered to a facility exempted as described in this clause. To initially qualify for an <br />
         		<a id="pl.220.15"></a><var>220.15</var>exemption, a facility must apply for an exemption in its application for a new or amended <br />
         		<a id="pl.220.16"></a><var>220.16</var>solid waste permit to the Pollution Control Agency. The first time a facility applies to the <br />
         		<a id="pl.220.17"></a><var>220.17</var>agency it must certify in its application that it will comply with the criteria in items (i) to (v) <br />
         		<a id="pl.220.18"></a><var>220.18</var>and the commissioner of the agency shall so certify to the commissioner of revenue who <br />
         		<a id="pl.220.19"></a><var>220.19</var>must grant the exemption. The facility must annually apply to the agency for certification <br />
         		<a id="pl.220.20"></a><var>220.20</var>to renew its exemption for the following year. The application must be filed according to <br />
         		<a id="pl.220.21"></a><var>220.21</var>the procedures of, and contain the information required by, the agency. The commissioner <br />
         		<a id="pl.220.22"></a><var>220.22</var>of revenue shall grant the exemption if the commissioner of the Pollution Control Agency <br />
         		<a id="pl.220.23"></a><var>220.23</var>finds and certifies to the commissioner of revenue that based on an evaluation of the <br />
         		<a id="pl.220.24"></a><var>220.24</var>composition of incoming waste and residuals and the quality and use of the product:<br />
         		<a id="pl.220.25"></a><var>220.25</var>(i) generators separate materials at the source;<br />
         		<a id="pl.220.26"></a><var>220.26</var>(ii) the separation is performed in a manner appropriate to the technology specific <br />
         		<a id="pl.220.27"></a><var>220.27</var>to the facility that:<br />
         		<a id="pl.220.28"></a><var>220.28</var>(A) maximizes the quality of the product;<br />
         		<a id="pl.220.29"></a><var>220.29</var>(B) minimizes the toxicity and quantity of residuals rejects; and<br />
         		<a id="pl.220.30"></a><var>220.30</var>(C) provides an opportunity for significant improvement in the environmental <br />
         		<a id="pl.220.31"></a><var>220.31</var>efficiency of the operation;<br />
         		<a id="pl.220.32"></a><var>220.32</var>(iii) the operator of the facility educates generators, in coordination with each county <br />
         		<a id="pl.220.33"></a><var>220.33</var>using the facility, about separating the waste to maximize the quality of the waste stream <br />
         		<a id="pl.220.34"></a><var>220.34</var>for technology specific to the facility;<br />
         		<a id="pl.220.35"></a><var>220.35</var>(iv) process residuals rejects do not exceed 15 percent of the weight of the total <br />
         		<a id="pl.220.36"></a><var>220.36</var>material delivered to the facility; and<br />
         		<a id="pl.221.1"></a><var>221.1</var>(v) the final product is accepted for use;<br />
         		<a id="pl.221.2"></a><var>221.2</var>(8) waste and waste by-products for which the tax has been paid; and<br />
         		<a id="pl.221.3"></a><var>221.3</var>(9) daily cover for landfills that has been approved in writing by the Minnesota <br />
         		<a id="pl.221.4"></a><var>221.4</var>Pollution Control Agency.<br />
         		<a id="pl.221.5"></a><var>221.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.14.0"></a><a id="pl.221.6"></a><var>221.6</var>&#160;&#160;&#160;&#160;Sec. 14. Minnesota Statutes 2014, section 297I.05, subdivision 2, is amended to read:<br />
         		<a id="pl.221.7"></a><var>221.7</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Town and farmers'</b><b> Township</b><b> mutual insurance.</b> A tax is imposed on <br />
         		<a id="pl.221.8"></a><var>221.8</var>town and farmers' township mutual insurance companies. The rate of tax is equal to one <br />
         		<a id="pl.221.9"></a><var>221.9</var>percent of gross premiums less return premiums on all direct business received by the <br />
         		<a id="pl.221.10"></a><var>221.10</var>insurer or agents of the insurer in Minnesota, in cash or otherwise, during the year.<br />
         		<a id="pl.221.11"></a><var>221.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.15.0"></a><a id="pl.221.12"></a><var>221.12</var>&#160;&#160;&#160;&#160;Sec. 15. Minnesota Statutes 2014, section 297I.10, subdivision 1, is amended to read:<br />
         		<a id="pl.221.13"></a><var>221.13</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Cities of the first class.</b> (a) The commissioner shall order and direct <br />
         		<a id="pl.221.14"></a><var>221.14</var>a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross <br />
         		<a id="pl.221.15"></a><var>221.15</var>premiums, less return premiums, on all direct business received by any licensed foreign or <br />
         		<a id="pl.221.16"></a><var>221.16</var>domestic fire insurance company on property in a city of the first class, or by its agents for <br />
         		<a id="pl.221.17"></a><var>221.17</var>it, in cash or otherwise.<br />
         		<a id="pl.221.18"></a><var>221.18</var>(b) By July 31 and December 31 of each year, the commissioner of management <br />
         		<a id="pl.221.19"></a><var>221.19</var>and budget shall pay to each city of the first class a warrant for an amount equal to the <br />
         		<a id="pl.221.20"></a><var>221.20</var>total amount of the surcharge on the premiums collected within that city since the previous <br />
         		<a id="pl.221.21"></a><var>221.21</var>payment.<br />
         		<a id="pl.221.22"></a><var>221.22</var>(c) The treasurer of the city shall place the money received under this subdivision <br />
         		<a id="pl.221.23"></a><var>221.23</var>in a special account or fund to defray all or a portion of the employer contribution <br />
         		<a id="pl.221.24"></a><var>221.24</var>requirement of public employees police and fire plan coverage for city firefighters.<br />
         		<a id="pl.221.25"></a><var>221.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.16.0"></a><a id="pl.221.26"></a><var>221.26</var>&#160;&#160;&#160;&#160;Sec. 16. Minnesota Statutes 2014, section 297I.10, subdivision 3, is amended to read:<br />
         		<a id="pl.221.27"></a><var>221.27</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Appropriation.</b> The amount necessary to make the payments required <br />
         		<a id="pl.221.28"></a><var>221.28</var>under this section is appropriated to the commissioner of management and budget from <br />
         		<a id="pl.221.29"></a><var>221.29</var>the general fund.<br />
         		<a id="pl.221.30"></a><var>221.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.17.0"></a><a id="pl.222.1"></a><var>222.1</var>&#160;&#160;&#160;&#160;Sec. 17. Minnesota Statutes 2014, section 298.01, subdivision 3b, is amended to read:<br />
         		<a id="pl.222.2"></a><var>222.2</var>&#160;&#160;&#160;&#160;Subd. 3b. <b>Deductions.</b> (a) For purposes of determining taxable income under <br />
         		<a id="pl.222.3"></a><var>222.3</var>subdivision 3, the deductions from gross income include only those expenses necessary <br />
         		<a id="pl.222.4"></a><var>222.4</var>to convert raw ores to marketable quality. Such expenses include costs associated with <br />
         		<a id="pl.222.5"></a><var>222.5</var>refinement but do not include expenses such as transportation, stockpiling, marketing, or <br />
         		<a id="pl.222.6"></a><var>222.6</var>marine insurance that are incurred after marketable ores are produced, unless the expenses <br />
         		<a id="pl.222.7"></a><var>222.7</var>are included in gross income. The allowable deductions from a mine or plant that mines <br />
         		<a id="pl.222.8"></a><var>222.8</var>and produces more than one mineral, metal, or energy resource must be determined <br />
         		<a id="pl.222.9"></a><var>222.9</var>separately for the purposes of computing the deduction in section 
         <statute_ref>290.01</statute_ref>, subdivision 19c, <br />
         		<a id="pl.222.10"></a><var>222.10</var>clause (8). These deductions may be combined on one occupation tax return to arrive at <br />
         		<a id="pl.222.11"></a><var>222.11</var>the deduction from gross income for all production.<br />
         		<a id="pl.222.12"></a><var>222.12</var>(b) The provisions of section 
         <statute_ref>290.01, subdivisions 19c, clauses (6)</statute_ref> and (8), and 19d, <br />
         		<a id="pl.222.13"></a><var>222.13</var>clauses (6) and (9) (8), are not used to determine taxable income.<br />
         		<a id="pl.222.14"></a><var>222.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.18.0"></a><a id="pl.222.15"></a><var>222.15</var>&#160;&#160;&#160;&#160;Sec. 18. Minnesota Statutes 2014, section 298.01, subdivision 4c, is amended to read:<br />
         		<a id="pl.222.16"></a><var>222.16</var>&#160;&#160;&#160;&#160;Subd. 4c. <b>Special deductions; net operating loss.</b> (a) For purposes of determining <br />
         		<a id="pl.222.17"></a><var>222.17</var>taxable income under subdivision 4, the provisions of section 
         <statute_ref>290.01, subdivisions 19c, <br />
            		<a id="pl.222.18"></a><var>222.18</var>clauses (6)
         </statute_ref> and (8), and 19d, clauses (6) and (9) (8), are not used to determine taxable <br />
         		<a id="pl.222.19"></a><var>222.19</var>income.<br />
         		<a id="pl.222.20"></a><var>222.20</var>(b) The amount of net operating loss incurred in a taxable year beginning before <br />
         		<a id="pl.222.21"></a><var>222.21</var>January 1, 1990, that may be carried over to a taxable year beginning after December 31, <br />
         		<a id="pl.222.22"></a><var>222.22</var>1989, is the amount of net operating loss carryover determined in the calculation of the <br />
         		<a id="pl.222.23"></a><var>222.23</var>hypothetical corporate franchise tax under Minnesota Statutes 1988, sections 
         <statute_ref>298.40 <br />
            		<a id="pl.222.24"></a><var>222.24</var></statute_ref>and 
         <statute_ref>298.402</statute_ref>.<br />
         		<a id="pl.222.25"></a><var>222.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.0.0"></a><div class="xtend_ce"><a id="pl.222.26"></a><var>222.26</var><b>ARTICLE 14</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.222.27"></a><var>222.27</var><b>DEPARTMENT OF REVENUE TECHNICAL AND POLICY; </b><br />
            		<a id="pl.222.28"></a><var>222.28</var><b>PROPERTY TAX PROVISIONS</b><br />
            		
         </div><br />
         		<a id="bill.14.1.0"></a><a id="pl.222.29"></a><var>222.29</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2014, section 13.51, subdivision 2, is amended to read:<br />
         		<a id="pl.222.30"></a><var>222.30</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Income property assessment data.</b> The following data collected by <br />
         		<a id="pl.222.31"></a><var>222.31</var>political subdivisions and the state from individuals or business entities concerning <br />
         		<a id="pl.222.32"></a><var>222.32</var>income properties are classified as private or nonpublic data pursuant to section 
         <statute_ref>13.02, <br />
            		<a id="pl.222.33"></a><var>222.33</var>subdivisions 9
         </statute_ref> and 12:<br />
         		<a id="pl.222.34"></a><var>222.34</var>(a) detailed income and expense figures;<br />
         		<a id="pl.223.1"></a><var>223.1</var>(b) average vacancy factors;<br />
         		<a id="pl.223.2"></a><var>223.2</var>(c) verified net rentable areas or net usable areas, whichever is appropriate;<br />
         		<a id="pl.223.3"></a><var>223.3</var>(d) anticipated income and expenses;<br />
         		<a id="pl.223.4"></a><var>223.4</var>(e) projected vacancy factors; and<br />
         		<a id="pl.223.5"></a><var>223.5</var>(f) lease information.<br />
         		<a id="pl.223.6"></a><var>223.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.2.0"></a><a id="pl.223.7"></a><var>223.7</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 270.071, subdivision 2, is amended to read:<br />
         		<a id="pl.223.8"></a><var>223.8</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Air commerce.</b> (a) "Air commerce" means the transportation by aircraft <br />
         		<a id="pl.223.9"></a><var>223.9</var>of persons or property for hire in interstate, intrastate, or international transportation <br />
         		<a id="pl.223.10"></a><var>223.10</var>on regularly scheduled flights or on intermittent or irregularly timed flights by airline <br />
         		<a id="pl.223.11"></a><var>223.11</var>companies and includes transportation by any airline company making three or more <br />
         		<a id="pl.223.12"></a><var>223.12</var>flights in or out of Minnesota, or within Minnesota, during a calendar year.<br />
         		<a id="pl.223.13"></a><var>223.13</var>(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed <br />
         		<a id="pl.223.14"></a><var>223.14</var>flight, a flight arranged at the convenience of an airline and the person contracting for the <br />
         		<a id="pl.223.15"></a><var>223.15</var>transportation, or a charter flight. It includes any airline company making three or more <br />
         		<a id="pl.223.16"></a><var>223.16</var>flights in or out of Minnesota during a calendar year.<br />
         		<a id="pl.223.17"></a><var>223.17</var>(c) "Air commerce" does not include casual transportation for hire by aircraft <br />
         		<a id="pl.223.18"></a><var>223.18</var>commonly owned and used for private air flight purposes if the person furnishing the <br />
         		<a id="pl.223.19"></a><var>223.19</var>transportation does not hold out to be engaged regularly in transportation for hire.<br />
         		<a id="pl.223.20"></a><var>223.20</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2017 and <br />
         		<a id="pl.223.21"></a><var>223.21</var>thereafter.<br />
         		<br />
         		<a id="bill.14.3.0"></a><a id="pl.223.22"></a><var>223.22</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 270.071, subdivision 7, is amended to read:<br />
         		<a id="pl.223.23"></a><var>223.23</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Flight property.</b> "Flight property" means all aircraft and flight equipment <br />
         		<a id="pl.223.24"></a><var>223.24</var>used in connection therewith, including spare flight equipment. Flight property also <br />
         		<a id="pl.223.25"></a><var>223.25</var>includes computers and computer software used in operating, controlling, or regulating <br />
         		<a id="pl.223.26"></a><var>223.26</var>aircraft and flight equipment. Flight property does not include aircraft with a maximum <br />
         		<a id="pl.223.27"></a><var>223.27</var>takeoff weight of less than 30,000 pounds.<br />
         		<a id="pl.223.28"></a><var>223.28</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2017 and <br />
         		<a id="pl.223.29"></a><var>223.29</var>thereafter.<br />
         		<br />
         		<a id="bill.14.4.0"></a><a id="pl.223.30"></a><var>223.30</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 270.071, subdivision 8, is amended to read:<br />
         		<a id="pl.223.31"></a><var>223.31</var>&#160;&#160;&#160;&#160;Subd. 8. <b>Person.</b> "Person" means any an individual, corporation, firm, <br />
         		<a id="pl.223.32"></a><var>223.32</var>copartnership, company, or association, and includes any guardian, trustee, executor, <br />
         		<a id="pl.224.1"></a><var>224.1</var>administrator, receiver, conservator, or any person acting in any fiduciary capacity therefor <br />
         		<a id="pl.224.2"></a><var>224.2</var>trust, estate, fiduciary, partnership, company, corporation, limited liability company, <br />
         		<a id="pl.224.3"></a><var>224.3</var>association, governmental unit or agency, public or private organization of any kind, <br />
         		<a id="pl.224.4"></a><var>224.4</var>or other legal entity.<br />
         		<a id="pl.224.5"></a><var>224.5</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2017 and <br />
         		<a id="pl.224.6"></a><var>224.6</var>thereafter.<br />
         		<br />
         		<a id="bill.14.5.0"></a><a id="pl.224.7"></a><var>224.7</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 270.071, is amended by adding a subdivision <br />
         		<a id="pl.224.8"></a><var>224.8</var>to read:<br />
         		<a id="pl.224.9"></a><var>224.9</var>&#160;&#160;&#160;&#160;Subd. 10. <b>Intermittent or irregularly timed flights.</b> "Intermittently or irregularly <br />
         		<a id="pl.224.10"></a><var>224.10</var>timed flights" means any flight in which the departure time, departure location, and arrival <br />
         		<a id="pl.224.11"></a><var>224.11</var>location are specifically negotiated with the customer or the customer's representative, <br />
         		<a id="pl.224.12"></a><var>224.12</var>including but not limited to charter flights.<br />
         		<a id="pl.224.13"></a><var>224.13</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2017 and <br />
         		<a id="pl.224.14"></a><var>224.14</var>thereafter.<br />
         		<br />
         		<a id="bill.14.6.0"></a><a id="pl.224.15"></a><var>224.15</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 270.072, subdivision 2, is amended to read:<br />
         		<a id="pl.224.16"></a><var>224.16</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Assessment of flight property.</b>  Flight property that is owned by, or is <br />
         		<a id="pl.224.17"></a><var>224.17</var>leased, loaned, or otherwise made available to an airline company operating in Minnesota <br />
         		<a id="pl.224.18"></a><var>224.18</var>shall be assessed and appraised annually by the commissioner with reference to its value <br />
         		<a id="pl.224.19"></a><var>224.19</var>on January 2 of the assessment year in the manner prescribed by sections 
         <statute_ref>270.071</statute_ref> to <br />
         		
         <statute_ref><a id="pl.224.20"></a><var>224.20</var>270.079
         </statute_ref>. Aircraft with a gross weight of less than 30,000 pounds and used on intermittent <br />
         		<a id="pl.224.21"></a><var>224.21</var>or irregularly timed flights shall be excluded from the provisions of sections 
         <statute_ref>270.071</statute_ref> to <br />
         		<a id="pl.224.22"></a><var>224.22</var><statute_ref>270.079</statute_ref>.<br />
         		<a id="pl.224.23"></a><var>224.23</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2017 and <br />
         		<a id="pl.224.24"></a><var>224.24</var>thereafter.<br />
         		<br />
         		<a id="bill.14.7.0"></a><a id="pl.224.25"></a><var>224.25</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 270.072, subdivision 3, is amended to read:<br />
         		<a id="pl.224.26"></a><var>224.26</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Report by airline company.</b> (a) Each year, on or before July 1, every <br />
         		<a id="pl.224.27"></a><var>224.27</var>airline company engaged in air commerce in this state shall file with the commissioner a <br />
         		<a id="pl.224.28"></a><var>224.28</var>report under oath setting forth specifically the information prescribed by the commissioner <br />
         		<a id="pl.224.29"></a><var>224.29</var>to enable the commissioner to make the assessment required in sections 
         <statute_ref>270.071</statute_ref> to <br />
         		
         <statute_ref><a id="pl.224.30"></a><var>224.30</var>270.079
         </statute_ref>, unless the commissioner determines that the airline company or person should be <br />
         		<a id="pl.224.31"></a><var>224.31</var>excluded from is exempt from filing because its activities do not constitute air commerce <br />
         		<a id="pl.224.32"></a><var>224.32</var>as defined herein.<br />
         		<a id="pl.225.1"></a><var>225.1</var>&#160;&#160;&#160;&#160;(b) The commissioner shall prescribe the content, format, and manner of the report <br />
         		<a id="pl.225.2"></a><var>225.2</var>pursuant to section 270C.30, except that a "law administered by the commissioner" <br />
         		<a id="pl.225.3"></a><var>225.3</var>includes the property tax laws. If a report is made by electronic means, the taxpayer's <br />
         		<a id="pl.225.4"></a><var>225.4</var>signature is defined pursuant to section 270C.304, except that a "law administered by the <br />
         		<a id="pl.225.5"></a><var>225.5</var>commissioner" includes the property tax laws.<br />
         		<a id="pl.225.6"></a><var>225.6</var><b>EFFECTIVE DATE.</b>The amendment to paragraph (a) is effective for reports <br />
         		<a id="pl.225.7"></a><var>225.7</var>filed in 2017 and thereafter. The amendment adding paragraph (b) is effective the day <br />
         		<a id="pl.225.8"></a><var>225.8</var>following final enactment.<br />
         		<br />
         		<a id="bill.14.8.0"></a><a id="pl.225.9"></a><var>225.9</var>&#160;&#160;&#160;&#160;Sec. 8. Minnesota Statutes 2014, section 270.072, is amended by adding a subdivision <br />
         		<a id="pl.225.10"></a><var>225.10</var>to read:<br />
         		<a id="pl.225.11"></a><var>225.11</var>&#160;&#160;&#160;&#160;Subd. 3a. <b>Commissioner filed reports.</b> If an airline company fails to file a report <br />
         		<a id="pl.225.12"></a><var>225.12</var>required by subdivision 3, the commissioner may, from information in the commissioner's <br />
         		<a id="pl.225.13"></a><var>225.13</var>possession or obtainable by the commissioner, make and file a report for the airline <br />
         		<a id="pl.225.14"></a><var>225.14</var>company, or may issue a notice of net tax capacity and tax under section 270.075, <br />
         		<a id="pl.225.15"></a><var>225.15</var>subdivision 2.<br />
         		<a id="pl.225.16"></a><var>225.16</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2017 and <br />
         		<a id="pl.225.17"></a><var>225.17</var>thereafter.<br />
         		<br />
         		<a id="bill.14.9.0"></a><a id="pl.225.18"></a><var>225.18</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2014, section 270.12, is amended by adding a subdivision <br />
         		<a id="pl.225.19"></a><var>225.19</var>to read:<br />
         		<a id="pl.225.20"></a><var>225.20</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Reassessment orders.</b> If the State Board of Equalization determines that a <br />
         		<a id="pl.225.21"></a><var>225.21</var>considerable amount of property has been undervalued or overvalued compared to like <br />
         		<a id="pl.225.22"></a><var>225.22</var>property such that the assessment is grossly unfair or inequitable, the State Board of <br />
         		<a id="pl.225.23"></a><var>225.23</var>Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders <br />
         		<a id="pl.225.24"></a><var>225.24</var>to the county assessor to reassess all or any part of a parcel in a county.<br />
         		<a id="pl.225.25"></a><var>225.25</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2017 and <br />
         		<a id="pl.225.26"></a><var>225.26</var>thereafter.<br />
         		<br />
         		<a id="bill.14.10.0"></a><a id="pl.225.27"></a><var>225.27</var>&#160;&#160;&#160;&#160;Sec. 10. Minnesota Statutes 2014, section 270C.89, subdivision 1, is amended to read:<br />
         		<a id="pl.225.28"></a><var>225.28</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Initial report.</b> Each county assessor shall file by April 1 with the <br />
         		<a id="pl.225.29"></a><var>225.29</var>commissioner a copy of the abstract that will be acted upon by the local and county <br />
         		<a id="pl.225.30"></a><var>225.30</var>boards of review. The abstract must list the real and personal property in the county <br />
         		<a id="pl.225.31"></a><var>225.31</var>itemized by assessment districts. The assessor of each county in the state shall file with <br />
         		<a id="pl.225.32"></a><var>225.32</var>the commissioner, within ten working days following final action of the local board of <br />
         		<a id="pl.226.1"></a><var>226.1</var>review or equalization and within five days following final action of the county board of <br />
         		<a id="pl.226.2"></a><var>226.2</var>equalization, any changes made by the local or county board. The information must be <br />
         		<a id="pl.226.3"></a><var>226.3</var>filed in the manner prescribed by the commissioner. It must be accompanied by a printed <br />
         		<a id="pl.226.4"></a><var>226.4</var>or typewritten copy of the proceedings of the appropriate board.<br />
         		<a id="pl.226.5"></a><var>226.5</var><b>EFFECTIVE DATE.</b>This section is effective for county boards of appeal and <br />
         		<a id="pl.226.6"></a><var>226.6</var>equalization meetings held in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.14.11.0"></a><a id="pl.226.7"></a><var>226.7</var>&#160;&#160;&#160;&#160;Sec. 11. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:<br />
         		<a id="pl.226.8"></a><var>226.8</var>&#160;&#160;&#160;&#160;Subd. 9. <b>Personal property; exceptions.</b> Except for the taxable personal property <br />
         		<a id="pl.226.9"></a><var>226.9</var>enumerated below, all personal property and the property described in section 
         <statute_ref>272.03, <br />
            		<a id="pl.226.10"></a><var>226.10</var>subdivision 1
         </statute_ref>, paragraphs (c) and (d), shall be exempt.<br />
         		<a id="pl.226.11"></a><var>226.11</var>The following personal property shall be taxable:<br />
         		<a id="pl.226.12"></a><var>226.12</var>(a) personal property which is part of (1) an electric generating, transmission, or <br />
         		<a id="pl.226.13"></a><var>226.13</var>distribution system or; (2) a pipeline system transporting or distributing water, gas, crude <br />
         		<a id="pl.226.14"></a><var>226.14</var>oil, or petroleum products; or (3) mains and pipes used in the distribution of steam or hot <br />
         		<a id="pl.226.15"></a><var>226.15</var>or chilled water for heating or cooling buildings and structures;<br />
         		<a id="pl.226.16"></a><var>226.16</var>(b) railroad docks and wharves which are part of the operating property of a railroad <br />
         		<a id="pl.226.17"></a><var>226.17</var>company as defined in section 
         <statute_ref>270.80</statute_ref>;<br />
         		<a id="pl.226.18"></a><var>226.18</var>(c) personal property defined in section 
         <statute_ref>272.03, subdivision 2</statute_ref>, clause (3);<br />
         		<a id="pl.226.19"></a><var>226.19</var>(d) leasehold or other personal property interests which are taxed pursuant to section <br />
         		
         <statute_ref><a id="pl.226.20"></a><var>226.20</var>272.01, subdivision 2
         </statute_ref>; 
         <statute_ref>273.124, subdivision 7</statute_ref>; or 
         <statute_ref>273.19, subdivision 1</statute_ref>; or any other law <br />
         		<a id="pl.226.21"></a><var>226.21</var>providing the property is taxable as if the lessee or user were the fee owner;<br />
         		<a id="pl.226.22"></a><var>226.22</var>(e) manufactured homes and sectional structures, including storage sheds, decks, <br />
         		<a id="pl.226.23"></a><var>226.23</var>and similar removable improvements constructed on the site of a manufactured home, <br />
         		<a id="pl.226.24"></a><var>226.24</var>sectional structure, park trailer or travel trailer as provided in section 
         <statute_ref>273.125, subdivision <br />
            		<a id="pl.226.25"></a><var>226.25</var>8
         </statute_ref>, paragraph (f); and<br />
         		<a id="pl.226.26"></a><var>226.26</var>(f) flight property as defined in section 
         <statute_ref>270.071</statute_ref>.<br />
         		<a id="pl.226.27"></a><var>226.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.12.0"></a><a id="pl.226.28"></a><var>226.28</var>&#160;&#160;&#160;&#160;Sec. 12. Minnesota Statutes 2014, section 272.029, subdivision 2, is amended to read:<br />
         		<a id="pl.226.29"></a><var>226.29</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the term:<br />
         		<a id="pl.226.30"></a><var>226.30</var>(1) "wind energy conversion system" has the meaning given in section 216C.06, <br />
         		<a id="pl.226.31"></a><var>226.31</var>subdivision 19, and also includes a substation that is used and owned by one or more <br />
         		<a id="pl.226.32"></a><var>226.32</var>wind energy conversion facilities;<br />
         		<a id="pl.227.1"></a><var>227.1</var>(2) "large scale wind energy conversion system" means a wind energy conversion <br />
         		<a id="pl.227.2"></a><var>227.2</var>system of more than 12 megawatts, as measured by the nameplate capacity of the system <br />
         		<a id="pl.227.3"></a><var>227.3</var>or as combined with other systems as provided in paragraph (b);<br />
         		<a id="pl.227.4"></a><var>227.4</var>(3) "medium scale wind energy conversion system" means a wind energy conversion <br />
         		<a id="pl.227.5"></a><var>227.5</var>system of over two and not more than 12 megawatts, as measured by the nameplate <br />
         		<a id="pl.227.6"></a><var>227.6</var>capacity of the system or as combined with other systems as provided in paragraph (b); and<br />
         		<a id="pl.227.7"></a><var>227.7</var>(4) "small scale wind energy conversion system" means a wind energy conversion <br />
         		<a id="pl.227.8"></a><var>227.8</var>system of two megawatts and under, as measured by the nameplate capacity of the system <br />
         		<a id="pl.227.9"></a><var>227.9</var>or as combined with other systems as provided in paragraph (b).<br />
         		<a id="pl.227.10"></a><var>227.10</var>(b) For systems installed and contracted for after January 1, 2002, the total size of a <br />
         		<a id="pl.227.11"></a><var>227.11</var>wind energy conversion system under this subdivision shall be determined according to <br />
         		<a id="pl.227.12"></a><var>227.12</var>this paragraph. Unless the systems are interconnected with different distribution systems, <br />
         		<a id="pl.227.13"></a><var>227.13</var>the nameplate capacity of one wind energy conversion system shall be combined with the <br />
         		<a id="pl.227.14"></a><var>227.14</var>nameplate capacity of any other wind energy conversion system that is:<br />
         		<a id="pl.227.15"></a><var>227.15</var>(1) located within five miles of the wind energy conversion system;<br />
         		<a id="pl.227.16"></a><var>227.16</var>(2) constructed within the same calendar year 12-month period as the wind energy <br />
         		<a id="pl.227.17"></a><var>227.17</var>conversion system; and<br />
         		<a id="pl.227.18"></a><var>227.18</var>(3) under common ownership.<br />
         		<a id="pl.227.19"></a><var>227.19</var>In the case of a dispute, the commissioner of commerce shall determine the total size <br />
         		<a id="pl.227.20"></a><var>227.20</var>of the system, and shall draw all reasonable inferences in favor of combining the systems.<br />
         		<a id="pl.227.21"></a><var>227.21</var>(c) In making a determination under paragraph (b), the commissioner of commerce <br />
         		<a id="pl.227.22"></a><var>227.22</var>may determine that two wind energy conversion systems are under common ownership <br />
         		<a id="pl.227.23"></a><var>227.23</var>when the underlying ownership structure contains similar persons or entities, even if the <br />
         		<a id="pl.227.24"></a><var>227.24</var>ownership shares differ between the two systems. Wind energy conversion systems are <br />
         		<a id="pl.227.25"></a><var>227.25</var>not under common ownership solely because the same person or entity provided equity <br />
         		<a id="pl.227.26"></a><var>227.26</var>financing for the systems.<br />
         		<a id="pl.227.27"></a><var>227.27</var><b>EFFECTIVE DATE.</b>This section is effective for reports filed in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.14.13.0"></a><a id="pl.227.28"></a><var>227.28</var>&#160;&#160;&#160;&#160;Sec. 13. Minnesota Statutes 2014, section 272.029, is amended by adding a subdivision <br />
         		<a id="pl.227.29"></a><var>227.29</var>to read:<br />
         		<a id="pl.227.30"></a><var>227.30</var>&#160;&#160;&#160;&#160;Subd. 8. <b>Extension.</b> The commissioner may, for good cause, extend the time for <br />
         		<a id="pl.227.31"></a><var>227.31</var>filing the report required by subdivision 4. The extension must not exceed 15 days.<br />
         		<a id="pl.227.32"></a><var>227.32</var><b>EFFECTIVE DATE.</b>This section is effective for reports filed in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.14.14.0"></a><a id="pl.227.33"></a><var>227.33</var>&#160;&#160;&#160;&#160;Sec. 14. Minnesota Statutes 2014, section 273.032, is amended to read:<br />
         		<a id="pl.228.1"></a><var>228.1</var><b>273.032 MARKET VALUE DEFINITION.</b><br />
         		<a id="pl.228.2"></a><var>228.2</var>&#160;&#160;&#160;&#160;(a) Unless otherwise provided, for the purpose of determining any property tax <br />
         		<a id="pl.228.3"></a><var>228.3</var>levy limitation based on market value or any limit on net debt, the issuance of bonds, <br />
         		<a id="pl.228.4"></a><var>228.4</var>certificates of indebtedness, or capital notes based on market value, any qualification to <br />
         		<a id="pl.228.5"></a><var>228.5</var>receive state aid based on market value, or any state aid amount based on market value, <br />
         		<a id="pl.228.6"></a><var>228.6</var>the terms "market value," "estimated market value," and "market valuation," whether <br />
         		<a id="pl.228.7"></a><var>228.7</var>equalized or unequalized, mean the estimated market value of taxable property within the <br />
         		<a id="pl.228.8"></a><var>228.8</var>local unit of government before any of the following or similar adjustments for:<br />
         		<a id="pl.228.9"></a><var>228.9</var>&#160;&#160;&#160;&#160;(1) the market value exclusions under:<br />
         		<a id="pl.228.10"></a><var>228.10</var>&#160;&#160;&#160;&#160;(i) section 
         <statute_ref>273.11, subdivisions 14a</statute_ref> and 14c (vacant platted land);<br />
         		<a id="pl.228.11"></a><var>228.11</var>&#160;&#160;&#160;&#160;(ii) section 
         <statute_ref>273.11, subdivision 16</statute_ref> (certain improvements to homestead property);<br />
         		<a id="pl.228.12"></a><var>228.12</var>&#160;&#160;&#160;&#160;(iii) section 
         <statute_ref>273.11, subdivisions 19</statute_ref> and 20 (certain improvements to business <br />
         		<a id="pl.228.13"></a><var>228.13</var>properties);<br />
         		<a id="pl.228.14"></a><var>228.14</var>&#160;&#160;&#160;&#160;(iv) section 
         <statute_ref>273.11, subdivision 21</statute_ref> (homestead property damaged by mold);<br />
         		<a id="pl.228.15"></a><var>228.15</var>&#160;&#160;&#160;&#160;(v) section 
         <statute_ref>273.11, subdivision 22</statute_ref> (qualifying lead hazardous reduction projects);<br />
         		<a id="pl.228.16"></a><var>228.16</var>&#160;&#160;&#160;&#160;(vi) (v) section 
         <statute_ref>273.13, subdivision 34</statute_ref> (homestead of a disabled veteran or family <br />
         		<a id="pl.228.17"></a><var>228.17</var>caregiver); or<br />
         		<a id="pl.228.18"></a><var>228.18</var>&#160;&#160;&#160;&#160;(vii) (vi) section 
         <statute_ref>273.13, subdivision 35</statute_ref> (homestead market value exclusion); or<br />
         		<a id="pl.228.19"></a><var>228.19</var>&#160;&#160;&#160;&#160;(2) the deferment of value under:<br />
         		<a id="pl.228.20"></a><var>228.20</var>&#160;&#160;&#160;&#160;(i) the Minnesota Agricultural Property Tax Law, section 
         <statute_ref>273.111</statute_ref>;<br />
         		<a id="pl.228.21"></a><var>228.21</var>&#160;&#160;&#160;&#160;(ii) the Aggregate Resource Preservation Law, section 
         <statute_ref>273.1115</statute_ref>;<br />
         		<a id="pl.228.22"></a><var>228.22</var>&#160;&#160;&#160;&#160;(iii) the Minnesota Open Space Property Tax Law, section 
         <statute_ref>273.112</statute_ref>;<br />
         		<a id="pl.228.23"></a><var>228.23</var>&#160;&#160;&#160;&#160;(iv) the rural preserves property tax program, section 
         <statute_ref>273.114</statute_ref>; or<br />
         		<a id="pl.228.24"></a><var>228.24</var>&#160;&#160;&#160;&#160;(v) the Metropolitan Agricultural Preserves Act, section 
         <statute_ref>473H.10</statute_ref>; or<br />
         		<a id="pl.228.25"></a><var>228.25</var>&#160;&#160;&#160;&#160;(3) the adjustments to tax capacity for:<br />
         		<a id="pl.228.26"></a><var>228.26</var>&#160;&#160;&#160;&#160;(i) tax increment financing under sections 
         <statute_ref>469.174</statute_ref> to 
         <statute_ref>469.1794</statute_ref>;<br />
         		<a id="pl.228.27"></a><var>228.27</var>&#160;&#160;&#160;&#160;(ii) fiscal disparities under chapter 276A or 473F; or<br />
         		<a id="pl.228.28"></a><var>228.28</var>&#160;&#160;&#160;&#160;(iii) powerline credit under section 
         <statute_ref>273.425</statute_ref>.<br />
         		<a id="pl.228.29"></a><var>228.29</var>&#160;&#160;&#160;&#160;(b) Estimated market value under paragraph (a) also includes the market value <br />
         		<a id="pl.228.30"></a><var>228.30</var>of tax-exempt property if the applicable law specifically provides that the limitation, <br />
         		<a id="pl.228.31"></a><var>228.31</var>qualification, or aid calculation includes tax-exempt property.<br />
         		<a id="pl.228.32"></a><var>228.32</var>&#160;&#160;&#160;&#160;(c) Unless otherwise provided, "market value," "estimated market value," and <br />
         		<a id="pl.228.33"></a><var>228.33</var>"market valuation" for purposes of property tax levy limitations and calculation of state <br />
         		<a id="pl.228.34"></a><var>228.34</var>aid, refer to the estimated market value for the previous assessment year and for purposes <br />
         		<a id="pl.228.35"></a><var>228.35</var>of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes <br />
         		<a id="pl.228.36"></a><var>228.36</var>refer to the estimated market value as last finally equalized.<br />
         		<a id="pl.229.1"></a><var>229.1</var>&#160;&#160;&#160;&#160;(d) For purposes of a provision of a home rule charter or of any special law that is not <br />
         		<a id="pl.229.2"></a><var>229.2</var>codified in the statutes and that imposes a levy limitation based on market value or any limit <br />
         		<a id="pl.229.3"></a><var>229.3</var>on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market <br />
         		<a id="pl.229.4"></a><var>229.4</var>value, the terms "market value," "taxable market value," and "market valuation," whether <br />
         		<a id="pl.229.5"></a><var>229.5</var>equalized or unequalized, mean "estimated market value" as defined in paragraph (a).<br />
         		<a id="pl.229.6"></a><var>229.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.15.0"></a><a id="pl.229.7"></a><var>229.7</var>&#160;&#160;&#160;&#160;Sec. 15. Minnesota Statutes 2014, section 273.061, subdivision 7, is amended to read:<br />
         		<a id="pl.229.8"></a><var>229.8</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Division of duties between local and county assessor.</b> The duty of the <br />
         		<a id="pl.229.9"></a><var>229.9</var>duly appointed local assessor shall be to view and appraise the value of all property as <br />
         		<a id="pl.229.10"></a><var>229.10</var>provided by law, but all the book work shall be done by the county assessor, or the <br />
         		<a id="pl.229.11"></a><var>229.11</var>assessor's assistants, and the value of all property subject to assessment and taxation shall <br />
         		<a id="pl.229.12"></a><var>229.12</var>be determined by the county assessor, except as otherwise hereinafter provided. If directed <br />
         		<a id="pl.229.13"></a><var>229.13</var>by the county assessor, the local assessor shall must perform the duties enumerated in <br />
         		<a id="pl.229.14"></a><var>229.14</var>subdivision 8, clause (16), and must enter construction and valuation data into the records <br />
         		<a id="pl.229.15"></a><var>229.15</var>in the manner prescribed by the county assessor.<br />
         		<a id="pl.229.16"></a><var>229.16</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2017 and <br />
         		<a id="pl.229.17"></a><var>229.17</var>thereafter.<br />
         		<br />
         		<a id="bill.14.16.0"></a><a id="pl.229.18"></a><var>229.18</var>&#160;&#160;&#160;&#160;Sec. 16. Minnesota Statutes 2014, section 273.08, is amended to read:<br />
         		<a id="pl.229.19"></a><var>229.19</var><b>273.08 ASSESSOR'S DUTIES.</b><br />
         		<a id="pl.229.20"></a><var>229.20</var>The assessor shall actually view, and determine the market value of each tract or lot <br />
         		<a id="pl.229.21"></a><var>229.21</var>of real property listed for taxation, including the value of all improvements and structures <br />
         		<a id="pl.229.22"></a><var>229.22</var>thereon, at maximum intervals of five years and shall enter the value opposite each <br />
         		<a id="pl.229.23"></a><var>229.23</var>description. When directed by the county assessor, local assessors must enter construction <br />
         		<a id="pl.229.24"></a><var>229.24</var>and valuation data into the records in the manner prescribed by the county assessor.<br />
         		<a id="pl.229.25"></a><var>229.25</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2017 and <br />
         		<a id="pl.229.26"></a><var>229.26</var>thereafter.<br />
         		<br />
         		<a id="bill.14.17.0"></a><a id="pl.229.27"></a><var>229.27</var>&#160;&#160;&#160;&#160;Sec. 17. Minnesota Statutes 2014, section 273.121, is amended by adding a subdivision <br />
         		<a id="pl.229.28"></a><var>229.28</var>to read:<br />
         		<a id="pl.229.29"></a><var>229.29</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Compliance.</b> A county assessor, or a city assessor having the powers <br />
         		<a id="pl.229.30"></a><var>229.30</var>of a county assessor, who does not comply with the timely notice requirement under <br />
         		<a id="pl.229.31"></a><var>229.31</var>subdivision 1 must:<br />
         		<a id="pl.230.1"></a><var>230.1</var>(1) mail an additional valuation notice to each person who was not provided timely <br />
         		<a id="pl.230.2"></a><var>230.2</var>notice; and<br />
         		<a id="pl.230.3"></a><var>230.3</var>(2) convene a supplemental local board of appeal and equalization or local review <br />
         		<a id="pl.230.4"></a><var>230.4</var>session no sooner than ten days after sending the additional notices required by clause (1).<br />
         		<a id="pl.230.5"></a><var>230.5</var><b>EFFECTIVE DATE.</b>This section is effective for valuation notices sent in 2017 <br />
         		<a id="pl.230.6"></a><var>230.6</var>and thereafter.<br />
         		<br />
         		<a id="bill.14.18.0"></a><a id="pl.230.7"></a><var>230.7</var>&#160;&#160;&#160;&#160;Sec. 18. Minnesota Statutes 2014, section 273.13, subdivision 22, is amended to read:<br />
         		<a id="pl.230.8"></a><var>230.8</var>&#160;&#160;&#160;&#160;Subd. 22. <b>Class 1.</b> (a) Except as provided in subdivision 23 and in paragraphs (b) <br />
         		<a id="pl.230.9"></a><var>230.9</var>and (c), real estate which is residential and used for homestead purposes is class 1a. In the <br />
         		<a id="pl.230.10"></a><var>230.10</var>case of a duplex or triplex in which one of the units is used for homestead purposes, the <br />
         		<a id="pl.230.11"></a><var>230.11</var>entire property is deemed to be used for homestead purposes. The market value of class 1a <br />
         		<a id="pl.230.12"></a><var>230.12</var>property must be determined based upon the value of the house, garage, and land.<br />
         		<a id="pl.230.13"></a><var>230.13</var>&#160;&#160;&#160;&#160;The first $500,000 of market value of class 1a property has a net classification rate <br />
         		<a id="pl.230.14"></a><var>230.14</var>of one percent of its market value; and the market value of class 1a property that exceeds <br />
         		<a id="pl.230.15"></a><var>230.15</var>$500,000 has a classification rate of 1.25 percent of its market value.<br />
         		<a id="pl.230.16"></a><var>230.16</var>&#160;&#160;&#160;&#160;(b) Class 1b property includes homestead real estate or homestead manufactured <br />
         		<a id="pl.230.17"></a><var>230.17</var>homes used for the purposes of a homestead by:<br />
         		<a id="pl.230.18"></a><var>230.18</var>&#160;&#160;&#160;&#160;(1) any person who is blind as defined in section 
         <statute_ref>256D.35</statute_ref>, or the blind person and <br />
         		<a id="pl.230.19"></a><var>230.19</var>the blind person's spouse;<br />
         		<a id="pl.230.20"></a><var>230.20</var>&#160;&#160;&#160;&#160;(2) any person who is permanently and totally disabled or by the disabled person and <br />
         		<a id="pl.230.21"></a><var>230.21</var>the disabled person's spouse; or<br />
         		<a id="pl.230.22"></a><var>230.22</var>&#160;&#160;&#160;&#160;(3) the surviving spouse of a permanently and totally disabled veteran homesteading <br />
         		<a id="pl.230.23"></a><var>230.23</var>a property classified under this paragraph for taxes payable in 2008.<br />
         		<a id="pl.230.24"></a><var>230.24</var>&#160;&#160;&#160;&#160;Property is classified and assessed under clause (2) only if the government agency or <br />
         		<a id="pl.230.25"></a><var>230.25</var>income-providing source certifies, upon the request of the homestead occupant, that the <br />
         		<a id="pl.230.26"></a><var>230.26</var>homestead occupant satisfies the disability requirements of this paragraph, and that the <br />
         		<a id="pl.230.27"></a><var>230.27</var>property is not eligible for the valuation exclusion under subdivision 34.<br />
         		<a id="pl.230.28"></a><var>230.28</var>&#160;&#160;&#160;&#160;Property is classified and assessed under paragraph (b) only if the commissioner <br />
         		<a id="pl.230.29"></a><var>230.29</var>of revenue or the county assessor certifies that the homestead occupant satisfies the <br />
         		<a id="pl.230.30"></a><var>230.30</var>requirements of this paragraph.<br />
         		<a id="pl.230.31"></a><var>230.31</var>&#160;&#160;&#160;&#160;Permanently and totally disabled for the purpose of this subdivision means a <br />
         		<a id="pl.230.32"></a><var>230.32</var>condition which is permanent in nature and totally incapacitates the person from working <br />
         		<a id="pl.230.33"></a><var>230.33</var>at an occupation which brings the person an income. The first $50,000 market value of <br />
         		<a id="pl.230.34"></a><var>230.34</var>class 1b property has a net classification rate of .45 percent of its market value. The <br />
         		<a id="pl.231.1"></a><var>231.1</var>remaining market value of class 1b property has a classification rate using the rates for is <br />
         		<a id="pl.231.2"></a><var>231.2</var>classified as class 1a or class 2a property, whichever is appropriate, of similar market value.<br />
         		<a id="pl.231.3"></a><var>231.3</var>&#160;&#160;&#160;&#160;(c) Class 1c property is commercial use real and personal property that abuts public <br />
         		<a id="pl.231.4"></a><var>231.4</var>water as defined in section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, and is devoted to temporary and <br />
         		<a id="pl.231.5"></a><var>231.5</var>seasonal residential occupancy for recreational purposes but not devoted to commercial <br />
         		<a id="pl.231.6"></a><var>231.6</var>purposes for more than 250 days in the year preceding the year of assessment, and that <br />
         		<a id="pl.231.7"></a><var>231.7</var>includes a portion used as a homestead by the owner, which includes a dwelling occupied <br />
         		<a id="pl.231.8"></a><var>231.8</var>as a homestead by a shareholder of a corporation that owns the resort, a partner in a <br />
         		<a id="pl.231.9"></a><var>231.9</var>partnership that owns the resort, or a member of a limited liability company that owns the <br />
         		<a id="pl.231.10"></a><var>231.10</var>resort even if the title to the homestead is held by the corporation, partnership, or limited <br />
         		<a id="pl.231.11"></a><var>231.11</var>liability company. For purposes of this paragraph, property is devoted to a commercial <br />
         		<a id="pl.231.12"></a><var>231.12</var>purpose on a specific day if any portion of the property, excluding the portion used <br />
         		<a id="pl.231.13"></a><var>231.13</var>exclusively as a homestead, is used for residential occupancy and a fee is charged for <br />
         		<a id="pl.231.14"></a><var>231.14</var>residential occupancy. Class 1c property must contain three or more rental units. A "rental <br />
         		<a id="pl.231.15"></a><var>231.15</var>unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping <br />
         		<a id="pl.231.16"></a><var>231.16</var>site equipped with water and electrical hookups for recreational vehicles. Class 1c property <br />
         		<a id="pl.231.17"></a><var>231.17</var>must provide recreational activities such as the rental of ice fishing houses, boats and <br />
         		<a id="pl.231.18"></a><var>231.18</var>motors, snowmobiles, downhill or cross-country ski equipment; provide marina services, <br />
         		<a id="pl.231.19"></a><var>231.19</var>launch services, or guide services; or sell bait and fishing tackle. Any unit in which the <br />
         		<a id="pl.231.20"></a><var>231.20</var>right to use the property is transferred to an individual or entity by deeded interest, or the <br />
         		<a id="pl.231.21"></a><var>231.21</var>sale of shares or stock, no longer qualifies for class 1c even though it may remain available <br />
         		<a id="pl.231.22"></a><var>231.22</var>for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c <br />
         		<a id="pl.231.23"></a><var>231.23</var>is also class 1c, regardless of the term of the rental agreement, as long as the use of the <br />
         		<a id="pl.231.24"></a><var>231.24</var>camping pad does not exceed 250 days. If the same owner owns two separate parcels that <br />
         		<a id="pl.231.25"></a><var>231.25</var>are located in the same township, and one of those properties is classified as a class 1c <br />
         		<a id="pl.231.26"></a><var>231.26</var>property and the other would be eligible to be classified as a class 1c property if it was <br />
         		<a id="pl.231.27"></a><var>231.27</var>used as the homestead of the owner, both properties will be assessed as a single class 1c <br />
         		<a id="pl.231.28"></a><var>231.28</var>property; for purposes of this sentence, properties are deemed to be owned by the same <br />
         		<a id="pl.231.29"></a><var>231.29</var>owner if each of them is owned by a limited liability company, and both limited liability <br />
         		<a id="pl.231.30"></a><var>231.30</var>companies have the same membership. The portion of the property used as a homestead <br />
         		<a id="pl.231.31"></a><var>231.31</var>is class 1a property under paragraph (a). The remainder of the property is classified as <br />
         		<a id="pl.231.32"></a><var>231.32</var>follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value <br />
         		<a id="pl.231.33"></a><var>231.33</var>is tier II, and any remaining market value is tier III. The classification rates for class 1c <br />
         		<a id="pl.231.34"></a><var>231.34</var>are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and <br />
         		<a id="pl.231.35"></a><var>231.35</var>personal property devoted to temporary and seasonal residential occupancy for recreation <br />
         		<a id="pl.231.36"></a><var>231.36</var>purposes in which all or a portion of the property was devoted to commercial purposes for <br />
         		<a id="pl.232.1"></a><var>232.1</var>not more than 250 days in the year preceding the year of assessment desiring classification <br />
         		<a id="pl.232.2"></a><var>232.2</var>as class 1c, must submit a declaration to the assessor designating the cabins or units <br />
         		<a id="pl.232.3"></a><var>232.3</var>occupied for 250 days or less in the year preceding the year of assessment by January 15 of <br />
         		<a id="pl.232.4"></a><var>232.4</var>the assessment year. Those cabins or units and a proportionate share of the land on which <br />
         		<a id="pl.232.5"></a><var>232.5</var>they are located must be designated as class 1c as otherwise provided. The remainder of <br />
         		<a id="pl.232.6"></a><var>232.6</var>the cabins or units and a proportionate share of the land on which they are located must be <br />
         		<a id="pl.232.7"></a><var>232.7</var>designated as class 3a commercial. The owner of property desiring designation as class <br />
         		<a id="pl.232.8"></a><var>232.8</var>1c property must provide guest registers or other records demonstrating that the units for <br />
         		<a id="pl.232.9"></a><var>232.9</var>which class 1c designation is sought were not occupied for more than 250 days in the <br />
         		<a id="pl.232.10"></a><var>232.10</var>year preceding the assessment if so requested. The portion of a property operated as a <br />
         		<a id="pl.232.11"></a><var>232.11</var>(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other <br />
         		<a id="pl.232.12"></a><var>232.12</var>nonresidential facility operated on a commercial basis not directly related to temporary <br />
         		<a id="pl.232.13"></a><var>232.13</var>and seasonal residential occupancy for recreation purposes does not qualify for class 1c.<br />
         		<a id="pl.232.14"></a><var>232.14</var>&#160;&#160;&#160;&#160;(d) Class 1d property includes structures that meet all of the following criteria:<br />
         		<a id="pl.232.15"></a><var>232.15</var>&#160;&#160;&#160;&#160;(1) the structure is located on property that is classified as agricultural property under <br />
         		<a id="pl.232.16"></a><var>232.16</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>;<br />
         		<a id="pl.232.17"></a><var>232.17</var>&#160;&#160;&#160;&#160;(2) the structure is occupied exclusively by seasonal farm workers during the time <br />
         		<a id="pl.232.18"></a><var>232.18</var>when they work on that farm, and the occupants are not charged rent for the privilege of <br />
         		<a id="pl.232.19"></a><var>232.19</var>occupying the property, provided that use of the structure for storage of farm equipment <br />
         		<a id="pl.232.20"></a><var>232.20</var>and produce does not disqualify the property from classification under this paragraph;<br />
         		<a id="pl.232.21"></a><var>232.21</var>&#160;&#160;&#160;&#160;(3) the structure meets all applicable health and safety requirements for the <br />
         		<a id="pl.232.22"></a><var>232.22</var>appropriate season; and<br />
         		<a id="pl.232.23"></a><var>232.23</var>&#160;&#160;&#160;&#160;(4) the structure is not salable as residential property because it does not comply <br />
         		<a id="pl.232.24"></a><var>232.24</var>with local ordinances relating to location in relation to streets or roads.<br />
         		<a id="pl.232.25"></a><var>232.25</var>&#160;&#160;&#160;&#160;The market value of class 1d property has the same classification rates as class <br />
         		<a id="pl.232.26"></a><var>232.26</var>1a property under paragraph (a).<br />
         		<a id="pl.232.27"></a><var>232.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.19.0"></a><a id="pl.232.28"></a><var>232.28</var>&#160;&#160;&#160;&#160;Sec. 19. Minnesota Statutes 2014, section 273.33, subdivision 1, is amended to read:<br />
         		<a id="pl.232.29"></a><var>232.29</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Listing and assessment in county.</b> The personal property of express, <br />
         		<a id="pl.232.30"></a><var>232.30</var>stage and transportation companies, and of pipeline companies engaged in the business <br />
         		<a id="pl.232.31"></a><var>232.31</var>of transporting natural gas, gasoline, crude oil, or other petroleum products, except as <br />
         		<a id="pl.232.32"></a><var>232.32</var>otherwise provided by law, shall be listed and assessed in the county, town or district <br />
         		<a id="pl.232.33"></a><var>232.33</var>where the same is usually kept.<br />
         		<a id="pl.232.34"></a><var>232.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.20.0"></a><a id="pl.233.1"></a><var>233.1</var>&#160;&#160;&#160;&#160;Sec. 20. Minnesota Statutes 2014, section 273.33, subdivision 2, is amended to read:<br />
         		<a id="pl.233.2"></a><var>233.2</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Listing and assessment by commissioner.</b> The personal property, <br />
         		<a id="pl.233.3"></a><var>233.3</var>consisting of the pipeline system of mains, pipes, and equipment attached thereto, of <br />
         		<a id="pl.233.4"></a><var>233.4</var>pipeline companies and others engaged in the operations or business of transporting <br />
         		<a id="pl.233.5"></a><var>233.5</var>natural gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed <br />
         		<a id="pl.233.6"></a><var>233.6</var>with and assessed by the commissioner of revenue and the values provided to the <br />
         		<a id="pl.233.7"></a><var>233.7</var>city or county assessor by order. This subdivision shall not apply to the assessment of <br />
         		<a id="pl.233.8"></a><var>233.8</var>the products transported through the pipelines nor to the lines of local commercial gas <br />
         		<a id="pl.233.9"></a><var>233.9</var>companies engaged primarily in the business of distributing gas products to consumers at <br />
         		<a id="pl.233.10"></a><var>233.10</var>retail nor to pipelines used by the owner thereof to supply natural gas or other petroleum <br />
         		<a id="pl.233.11"></a><var>233.11</var>products exclusively for such owner's own consumption and not for resale to others. If <br />
         		<a id="pl.233.12"></a><var>233.12</var>more than 85 percent of the natural gas or other petroleum products actually transported <br />
         		<a id="pl.233.13"></a><var>233.13</var>over the pipeline is used for the owner's own consumption and not for resale to others, <br />
         		<a id="pl.233.14"></a><var>233.14</var>then this subdivision shall not apply; provided, however, that in that event, the pipeline <br />
         		<a id="pl.233.15"></a><var>233.15</var>shall be assessed in proportion to the percentage of gas products actually transported over <br />
         		<a id="pl.233.16"></a><var>233.16</var>such pipeline that is not used for the owner's own consumption. On or before August 1, <br />
         		<a id="pl.233.17"></a><var>233.17</var>the commissioner shall certify to the auditor of each county, the amount of such personal <br />
         		<a id="pl.233.18"></a><var>233.18</var>property assessment against each company in each district in which such property is <br />
         		<a id="pl.233.19"></a><var>233.19</var>located. If the commissioner determines that the amount of personal property assessment <br />
         		<a id="pl.233.20"></a><var>233.20</var>certified on or before August 1 is in error, the commissioner may issue a corrected <br />
         		<a id="pl.233.21"></a><var>233.21</var>certification on or before October 1. The commissioner may correct errors that are merely <br />
         		<a id="pl.233.22"></a><var>233.22</var>clerical in nature until December 31.<br />
         		<a id="pl.233.23"></a><var>233.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.21.0"></a><a id="pl.233.24"></a><var>233.24</var>&#160;&#160;&#160;&#160;Sec. 21. Minnesota Statutes 2014, section 273.372, subdivision 1, is amended to read:<br />
         		<a id="pl.233.25"></a><var>233.25</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Scope.</b> (a) As provided in this section, an appeal by a utility or <br />
         		<a id="pl.233.26"></a><var>233.26</var>railroad company concerning property for which the commissioner of revenue has provided <br />
         		<a id="pl.233.27"></a><var>233.27</var>the city or county assessor with valuations by order, or for which the commissioner <br />
         		<a id="pl.233.28"></a><var>233.28</var>has recommended values to the city or county assessor, must be brought against the <br />
         		<a id="pl.233.29"></a><var>233.29</var>commissioner, and not against the county or taxing district where the property is located. <br />
         		<a id="pl.233.30"></a><var>233.30</var>Service must be made on the commissioner only, and not on the county or taxing district.<br />
         		<a id="pl.233.31"></a><var>233.31</var>(b) This section governs administrative appeals and appeals to court of a claim that <br />
         		<a id="pl.233.32"></a><var>233.32</var>utility or railroad operating property has been partially, unfairly, or unequally assessed, <br />
         		<a id="pl.233.33"></a><var>233.33</var>or assessed at a valuation greater than its real or actual value, misclassified, or that the <br />
         		<a id="pl.233.34"></a><var>233.34</var>property is exempt. This section applies only to property described in sections 
         <statute_ref>270.81, <br />
            		<a id="pl.233.35"></a><var>233.35</var>subdivision 1
         </statute_ref>, 
         <statute_ref>273.33</statute_ref>, 
         <statute_ref>273.35</statute_ref>, 
         <statute_ref>273.36</statute_ref>, and 
         <statute_ref>273.37</statute_ref>, and only with regard to taxable net tax <br />
         		<a id="pl.234.1"></a><var>234.1</var>capacities that have been provided to the city or county by the commissioner and which <br />
         		<a id="pl.234.2"></a><var>234.2</var>have not been changed by city or county. If the taxable net tax capacity being appealed is <br />
         		<a id="pl.234.3"></a><var>234.3</var>not the taxable net tax capacity established by the commissioner, or if the appeal claims <br />
         		<a id="pl.234.4"></a><var>234.4</var>that the tax rate applied against the parcel is incorrect, or that the tax has been paid, this <br />
         		<a id="pl.234.5"></a><var>234.5</var>section does not apply.<br />
         		<a id="pl.234.6"></a><var>234.6</var><b>EFFECTIVE DATE.</b>This section is effective for appeals of valuations made in <br />
         		<a id="pl.234.7"></a><var>234.7</var>assessment year 2017 and thereafter.<br />
         		<br />
         		<a id="bill.14.22.0"></a><a id="pl.234.8"></a><var>234.8</var>&#160;&#160;&#160;&#160;Sec. 22. Minnesota Statutes 2014, section 273.372, subdivision 2, is amended to read:<br />
         		<a id="pl.234.9"></a><var>234.9</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Contents and filing of petition.</b> (a) In all appeals to court that are required <br />
         		<a id="pl.234.10"></a><var>234.10</var>to be brought against the commissioner under this section, the petition initiating the appeal <br />
         		<a id="pl.234.11"></a><var>234.11</var>must be served on the commissioner and must be filed with the Tax Court in Ramsey <br />
         		<a id="pl.234.12"></a><var>234.12</var>County, as provided in paragraph (b) or (c).<br />
         		<a id="pl.234.13"></a><var>234.13</var>(b) If the appeal to court is from an order of the commissioner, it must be brought <br />
         		<a id="pl.234.14"></a><var>234.14</var>under chapter 271 and filed within the time period prescribed in section 271.06, <br />
         		<a id="pl.234.15"></a><var>234.15</var>subdivision 2, except that when the provisions of this section conflict with chapter <br />
         		<a id="pl.234.16"></a><var>234.16</var>271 or 278, this section prevails. In addition, the petition must include all the parcels <br />
         		<a id="pl.234.17"></a><var>234.17</var>encompassed by that order which the petitioner claims have been partially, unfairly, <br />
         		<a id="pl.234.18"></a><var>234.18</var>or unequally assessed, assessed at a valuation greater than their real or actual value, <br />
         		<a id="pl.234.19"></a><var>234.19</var>misclassified, or are exempt. For this purpose, an order of the commissioner is either (1) a <br />
         		<a id="pl.234.20"></a><var>234.20</var>certification or notice of value by the commissioner for property described in subdivision <br />
         		<a id="pl.234.21"></a><var>234.21</var>1, or (2) the final determination by the commissioner of either an administrative appeal <br />
         		<a id="pl.234.22"></a><var>234.22</var>conference or informal administrative appeal described in subdivision 4.<br />
         		<a id="pl.234.23"></a><var>234.23</var>(c) If the appeal is from the tax that results from implementation of the <br />
         		<a id="pl.234.24"></a><var>234.24</var>commissioner's order, certification, or recommendation, it must be brought under <br />
         		<a id="pl.234.25"></a><var>234.25</var>chapter 278, and the provisions in that chapter apply, except that service shall be on the <br />
         		<a id="pl.234.26"></a><var>234.26</var>commissioner only and not on the local officials specified in section 
         <statute_ref>278.01, subdivision 1</statute_ref>, <br />
         		<a id="pl.234.27"></a><var>234.27</var>and if any other provision of this section conflicts with chapter 278, this section prevails. <br />
         		<a id="pl.234.28"></a><var>234.28</var>In addition, the petition must include either all the utility parcels or all the railroad parcels <br />
         		<a id="pl.234.29"></a><var>234.29</var>in the state in which the petitioner claims an interest and which the petitioner claims have <br />
         		<a id="pl.234.30"></a><var>234.30</var>been partially, unfairly, or unequally assessed, assessed at a valuation greater than their <br />
         		<a id="pl.234.31"></a><var>234.31</var>real or actual value, misclassified, or are exempt.<br />
         		<a id="pl.234.32"></a><var>234.32</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2017 and <br />
         		<a id="pl.234.33"></a><var>234.33</var>thereafter.<br />
         		<br />
         		<a id="bill.14.23.0"></a><a id="pl.235.1"></a><var>235.1</var>&#160;&#160;&#160;&#160;Sec. 23. Minnesota Statutes 2014, section 273.372, subdivision 4, is amended to read:<br />
         		<a id="pl.235.2"></a><var>235.2</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Administrative appeals.</b> (a) Companies that submit the reports under <br />
         		<a id="pl.235.3"></a><var>235.3</var>section 
         <statute_ref>270.82</statute_ref> or 
         <statute_ref>273.371</statute_ref> by the date specified in that section, or by the date specified <br />
         		<a id="pl.235.4"></a><var>235.4</var>by the commissioner in an extension, may appeal administratively to the commissioner <br />
         		<a id="pl.235.5"></a><var>235.5</var>prior to bringing an action in court.<br />
         		<a id="pl.235.6"></a><var>235.6</var>&#160;&#160;&#160;&#160;(b) Companies that must submit reports under section 
         <statute_ref>270.82</statute_ref> must submit file a <br />
         		<a id="pl.235.7"></a><var>235.7</var>written request to for an appeal with the commissioner for a conference within ten 30 <br />
         		<a id="pl.235.8"></a><var>235.8</var>days after the notice date of the commissioner's valuation certification or other notice <br />
         		<a id="pl.235.9"></a><var>235.9</var>to the company, or by June 15, whichever is earlier. For purposes of this section, the <br />
         		<a id="pl.235.10"></a><var>235.10</var>term "notice date" means the date of the valuation certification, commissioner's order, <br />
         		<a id="pl.235.11"></a><var>235.11</var>recommendation, or other notice.<br />
         		<a id="pl.235.12"></a><var>235.12</var>&#160;&#160;&#160;&#160;(c) Companies that submit reports under section 
         <statute_ref>273.371</statute_ref> must submit a written <br />
         		<a id="pl.235.13"></a><var>235.13</var>request to the commissioner for a conference within ten days after the date of the <br />
         		<a id="pl.235.14"></a><var>235.14</var>commissioner's valuation certification or notice to the company, or by July 1, whichever <br />
         		<a id="pl.235.15"></a><var>235.15</var>is earlier. The appeal need not be in any particular form but must contain the following <br />
         		<a id="pl.235.16"></a><var>235.16</var>information:<br />
         		<a id="pl.235.17"></a><var>235.17</var>&#160;&#160;&#160;&#160;(1) name and address of the company;<br />
         		<a id="pl.235.18"></a><var>235.18</var>&#160;&#160;&#160;&#160;(2) the date;<br />
         		<a id="pl.235.19"></a><var>235.19</var>&#160;&#160;&#160;&#160;(3) its Minnesota identification number;<br />
         		<a id="pl.235.20"></a><var>235.20</var>&#160;&#160;&#160;&#160;(4) the assessment year or period involved;<br />
         		<a id="pl.235.21"></a><var>235.21</var>&#160;&#160;&#160;&#160;(5) the findings in the valuation that the company disputes;<br />
         		<a id="pl.235.22"></a><var>235.22</var>&#160;&#160;&#160;&#160;(6) a summary statement specifying its reasons for disputing each item; and<br />
         		<a id="pl.235.23"></a><var>235.23</var>&#160;&#160;&#160;&#160;(7) the signature of the company's duly authorized agent or representative.<br />
         		<a id="pl.235.24"></a><var>235.24</var>&#160;&#160;&#160;&#160;(d) When requested in writing and within the time allowed for filing an <br />
         		<a id="pl.235.25"></a><var>235.25</var>administrative appeal, the commissioner may extend the time for filing an appeal for a <br />
         		<a id="pl.235.26"></a><var>235.26</var>period of not more than 15 days from the expiration of the time for filing the appeal.<br />
         		<a id="pl.235.27"></a><var>235.27</var>&#160;&#160;&#160;&#160;(d) (e) The commissioner shall conduct the conference either in person or by <br />
         		<a id="pl.235.28"></a><var>235.28</var>telephone upon the commissioner's entire files and records and such further information as <br />
         		<a id="pl.235.29"></a><var>235.29</var>may be offered. The conference must be held no later than 20 days after the date of the <br />
         		<a id="pl.235.30"></a><var>235.30</var>commissioner's valuation certification or notice to the company, or by the date specified <br />
         		<a id="pl.235.31"></a><var>235.31</var>by the commissioner in an extension request for an appeal. Within 60 30 days after the <br />
         		<a id="pl.235.32"></a><var>235.32</var>conference the commissioner shall make a final determination of the matter and shall <br />
         		<a id="pl.235.33"></a><var>235.33</var>notify the company promptly of the determination. The conference is not a contested <br />
         		<a id="pl.235.34"></a><var>235.34</var>case hearing subject to chapter 14.<br />
         		<a id="pl.235.35"></a><var>235.35</var>&#160;&#160;&#160;&#160;(e) In addition to the opportunity for a conference under paragraph (a), the <br />
         		<a id="pl.235.36"></a><var>235.36</var>commissioner shall also provide the railroad and utility companies the opportunity to <br />
         		<a id="pl.236.1"></a><var>236.1</var>discuss any questions or concerns relating to the values established by the commissioner <br />
         		<a id="pl.236.2"></a><var>236.2</var>through certification or notice in a less formal manner. This does not change or modify <br />
         		<a id="pl.236.3"></a><var>236.3</var>the deadline for requesting a conference under paragraph (a), the deadline in section <br />
         		<a id="pl.236.4"></a><var>236.4</var><statute_ref>271.06</statute_ref> for appealing an order of the commissioner, or the deadline in section 
         <statute_ref>278.01</statute_ref> for <br />
         		<a id="pl.236.5"></a><var>236.5</var>appealing property taxes in court.<br />
         		<a id="pl.236.6"></a><var>236.6</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2017 and <br />
         		<a id="pl.236.7"></a><var>236.7</var>thereafter.<br />
         		<br />
         		<a id="bill.14.24.0"></a><a id="pl.236.8"></a><var>236.8</var>&#160;&#160;&#160;&#160;Sec. 24. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision <br />
         		<a id="pl.236.9"></a><var>236.9</var>to read:<br />
         		<a id="pl.236.10"></a><var>236.10</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Agreement determining valuation.</b> When it appears to be in the best <br />
         		<a id="pl.236.11"></a><var>236.11</var>interest of the state, the commissioner may settle any matter under consideration regarding <br />
         		<a id="pl.236.12"></a><var>236.12</var>an appeal filed under this section. The agreement must be in writing and signed by <br />
         		<a id="pl.236.13"></a><var>236.13</var>the commissioner and the company or the company's authorized representative. The <br />
         		<a id="pl.236.14"></a><var>236.14</var>agreement is final and conclusive, and except upon a showing of fraud, malfeasance, <br />
         		<a id="pl.236.15"></a><var>236.15</var>or misrepresentation of a material fact, the case may not be reopened as to the matters <br />
         		<a id="pl.236.16"></a><var>236.16</var>agreed upon.<br />
         		<a id="pl.236.17"></a><var>236.17</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2017 and <br />
         		<a id="pl.236.18"></a><var>236.18</var>thereafter.<br />
         		<br />
         		<a id="bill.14.25.0"></a><a id="pl.236.19"></a><var>236.19</var>&#160;&#160;&#160;&#160;Sec. 25. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision <br />
         		<a id="pl.236.20"></a><var>236.20</var>to read:<br />
         		<a id="pl.236.21"></a><var>236.21</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Dismissal of administrative appeal.</b> If a taxpayer files an administrative <br />
         		<a id="pl.236.22"></a><var>236.22</var>appeal from an order of the commissioner and also files an appeal to the tax court for <br />
         		<a id="pl.236.23"></a><var>236.23</var>that same order of the commissioner, the administrative appeal is dismissed and the <br />
         		<a id="pl.236.24"></a><var>236.24</var>commissioner is no longer required to make the determination of appeal under subdivision <br />
         		<a id="pl.236.25"></a><var>236.25</var>4.<br />
         		<a id="pl.236.26"></a><var>236.26</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2016.<br />
         		<br />
         		<a id="bill.14.26.0"></a><a id="pl.236.27"></a><var>236.27</var>&#160;&#160;&#160;&#160;Sec. 26. <b>[273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.</b><br />
         		<a id="pl.236.28"></a><var>236.28</var>After making the apportionment provided in Minnesota Rules, part 8100.0600, the <br />
         		<a id="pl.236.29"></a><var>236.29</var>commissioner must equalize the values of the operating structures to the level accepted by <br />
         		<a id="pl.236.30"></a><var>236.30</var>the State Board of Equalization if the appropriate sales ratio for each county, as conducted <br />
         		<a id="pl.236.31"></a><var>236.31</var>by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is <br />
         		<a id="pl.236.32"></a><var>236.32</var>outside the range accepted by the State Board of Equalization. The commissioner must <br />
         		<a id="pl.237.1"></a><var>237.1</var>not equalize the value of the operating structures if the sales ratio determined pursuant to <br />
         		<a id="pl.237.2"></a><var>237.2</var>this subdivision is within the range accepted by the State Board of Equalization.<br />
         		<a id="pl.237.3"></a><var>237.3</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2016.<br />
         		<br />
         		<a id="bill.14.27.0"></a><a id="pl.237.4"></a><var>237.4</var>&#160;&#160;&#160;&#160;Sec. 27. Minnesota Statutes 2014, section 274.01, subdivision 1, is amended to read:<br />
         		<a id="pl.237.5"></a><var>237.5</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Ordinary board; meetings, deadlines, grievances.</b> (a) The town <br />
         		<a id="pl.237.6"></a><var>237.6</var>board of a town, or the council or other governing body of a city, is the local board <br />
         		<a id="pl.237.7"></a><var>237.7</var>of appeal and equalization except (1) in cities whose charters provide for a board of <br />
         		<a id="pl.237.8"></a><var>237.8</var>equalization or (2) in any city or town that has transferred its local board of review power <br />
         		<a id="pl.237.9"></a><var>237.9</var>and duties to the county board as provided in subdivision 3. The county assessor shall <br />
         		<a id="pl.237.10"></a><var>237.10</var>fix a day and time when the board or the local board of equalization shall meet in the <br />
         		<a id="pl.237.11"></a><var>237.11</var>assessment districts of the county. Notwithstanding any law or city charter to the contrary, <br />
         		<a id="pl.237.12"></a><var>237.12</var>a city board of equalization shall be referred to as a local board of appeal and equalization. <br />
         		<a id="pl.237.13"></a><var>237.13</var>On or before February 15 of each year the assessor shall give written notice of the time <br />
         		<a id="pl.237.14"></a><var>237.14</var>to the city or town clerk. Notwithstanding the provisions of any charter to the contrary, <br />
         		<a id="pl.237.15"></a><var>237.15</var>the meetings must be held between April 1 and May 31 each year. The clerk shall give <br />
         		<a id="pl.237.16"></a><var>237.16</var>published and posted notice of the meeting at least ten days before the date of the meeting.<br />
         		<a id="pl.237.17"></a><var>237.17</var>&#160;&#160;&#160;&#160;The board shall meet either at a central location within the county or at the office of <br />
         		<a id="pl.237.18"></a><var>237.18</var>the clerk to review the assessment and classification of property in the town or city. No <br />
         		<a id="pl.237.19"></a><var>237.19</var>changes in valuation or classification which are intended to correct errors in judgment by <br />
         		<a id="pl.237.20"></a><var>237.20</var>the county assessor may be made by the county assessor after the board has adjourned <br />
         		<a id="pl.237.21"></a><var>237.21</var>in those cities or towns that hold a local board of review; however, corrections of errors <br />
         		<a id="pl.237.22"></a><var>237.22</var>that are merely clerical in nature or changes that extend homestead treatment to property <br />
         		<a id="pl.237.23"></a><var>237.23</var>are permitted after adjournment until the tax extension date for that assessment year. The <br />
         		<a id="pl.237.24"></a><var>237.24</var>changes must be fully documented and maintained in the assessor's office and must be <br />
         		<a id="pl.237.25"></a><var>237.25</var>available for review by any person. A copy of the changes made during this period in <br />
         		<a id="pl.237.26"></a><var>237.26</var>those cities or towns that hold a local board of review must be sent to the county board no <br />
         		<a id="pl.237.27"></a><var>237.27</var>later than December 31 of the assessment year.<br />
         		<a id="pl.237.28"></a><var>237.28</var>&#160;&#160;&#160;&#160;(b) The board shall determine whether the taxable property in the town or city has <br />
         		<a id="pl.237.29"></a><var>237.29</var>been properly placed on the list and properly valued by the assessor. If real or personal <br />
         		<a id="pl.237.30"></a><var>237.30</var>property has been omitted, the board shall place it on the list with its market value, and <br />
         		<a id="pl.237.31"></a><var>237.31</var>correct the assessment so that each tract or lot of real property, and each article, parcel, <br />
         		<a id="pl.237.32"></a><var>237.32</var>or class of personal property, is entered on the assessment list at its market value. No <br />
         		<a id="pl.237.33"></a><var>237.33</var>assessment of the property of any person may be raised unless the person has been <br />
         		<a id="pl.237.34"></a><var>237.34</var>duly notified of the intent of the board to do so. On application of any person feeling <br />
         		<a id="pl.237.35"></a><var>237.35</var>aggrieved, the board shall review the assessment or classification, or both, and correct <br />
         		<a id="pl.238.1"></a><var>238.1</var>it as appears just. The board may not make an individual market value adjustment or <br />
         		<a id="pl.238.2"></a><var>238.2</var>classification change that would benefit the property if the owner or other person having <br />
         		<a id="pl.238.3"></a><var>238.3</var>control over the property has refused the assessor access to inspect the property and the <br />
         		<a id="pl.238.4"></a><var>238.4</var>interior of any buildings or structures as provided in section 
         <statute_ref>273.20</statute_ref>. A board member <br />
         		<a id="pl.238.5"></a><var>238.5</var>shall not participate in any actions of the board which result in market value adjustments <br />
         		<a id="pl.238.6"></a><var>238.6</var>or classification changes to property owned by the board member, the spouse, parent, <br />
         		<a id="pl.238.7"></a><var>238.7</var>stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, <br />
         		<a id="pl.238.8"></a><var>238.8</var>or niece of a board member, or property in which a board member has a financial interest. <br />
         		<a id="pl.238.9"></a><var>238.9</var>The relationship may be by blood or marriage.<br />
         		<a id="pl.238.10"></a><var>238.10</var>&#160;&#160;&#160;&#160;(c) A local board may reduce assessments upon petition of the taxpayer but the total <br />
         		<a id="pl.238.11"></a><var>238.11</var>reductions must not reduce the aggregate assessment made by the county assessor by more <br />
         		<a id="pl.238.12"></a><var>238.12</var>than one percent. If the total reductions would lower the aggregate assessments made by <br />
         		<a id="pl.238.13"></a><var>238.13</var>the county assessor by more than one percent, none of the adjustments may be made. The <br />
         		<a id="pl.238.14"></a><var>238.14</var>assessor shall correct any clerical errors or double assessments discovered by the board <br />
         		<a id="pl.238.15"></a><var>238.15</var>without regard to the one percent limitation.<br />
         		<a id="pl.238.16"></a><var>238.16</var>&#160;&#160;&#160;&#160;(d) A local board does not have authority to grant an exemption or to order property <br />
         		<a id="pl.238.17"></a><var>238.17</var>removed from the tax rolls.<br />
         		<a id="pl.238.18"></a><var>238.18</var>&#160;&#160;&#160;&#160;(e) A majority of the members may act at the meeting, and adjourn from day to day <br />
         		<a id="pl.238.19"></a><var>238.19</var>until they finish hearing the cases presented. The assessor shall attend and take part in <br />
         		<a id="pl.238.20"></a><var>238.20</var>the proceedings, but must not vote. The county assessor, or an assistant delegated by the <br />
         		<a id="pl.238.21"></a><var>238.21</var>county assessor shall attend the meetings. The board shall list separately all omitted <br />
         		<a id="pl.238.22"></a><var>238.22</var>property added to the list by the board and all items of property increased or decreased, <br />
         		<a id="pl.238.23"></a><var>238.23</var>with the market value of each item of property, added or changed by the board. The <br />
         		<a id="pl.238.24"></a><var>238.24</var>county assessor shall enter all changes made by the board.<br />
         		<a id="pl.238.25"></a><var>238.25</var>&#160;&#160;&#160;&#160;(f) Except as provided in subdivision 3, if a person fails to appear in person, by <br />
         		<a id="pl.238.26"></a><var>238.26</var>counsel, or by written communication before the board after being duly notified of the <br />
         		<a id="pl.238.27"></a><var>238.27</var>board's intent to raise the assessment of the property, or if a person feeling aggrieved by an <br />
         		<a id="pl.238.28"></a><var>238.28</var>assessment or classification fails to apply for a review of the assessment or classification, <br />
         		<a id="pl.238.29"></a><var>238.29</var>the person may not appear before the county board of appeal and equalization for a review. <br />
         		<a id="pl.238.30"></a><var>238.30</var>This paragraph does not apply if an assessment was made after the local board meeting, as <br />
         		<a id="pl.238.31"></a><var>238.31</var>provided in section 
         <statute_ref>273.01</statute_ref>, or if the person can establish not having received notice of <br />
         		<a id="pl.238.32"></a><var>238.32</var>market value at least five days before the local board meeting.<br />
         		<a id="pl.238.33"></a><var>238.33</var>&#160;&#160;&#160;&#160;(g) The local board must complete its work and adjourn within 20 days from the <br />
         		<a id="pl.238.34"></a><var>238.34</var>time of convening stated in the notice of the clerk, unless a longer period is approved by <br />
         		<a id="pl.238.35"></a><var>238.35</var>the commissioner of revenue. No action taken after that date is valid. All complaints <br />
         		<a id="pl.238.36"></a><var>238.36</var>about an assessment or classification made after the meeting of the board must be heard <br />
         		<a id="pl.239.1"></a><var>239.1</var>and determined by the county board of equalization. A nonresident may, at any time, <br />
         		<a id="pl.239.2"></a><var>239.2</var>before the meeting of the board file written objections to an assessment or classification <br />
         		<a id="pl.239.3"></a><var>239.3</var>with the county assessor. The objections must be presented to the board at its meeting by <br />
         		<a id="pl.239.4"></a><var>239.4</var>the county assessor for its consideration.<br />
         		<a id="pl.239.5"></a><var>239.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.28.0"></a><a id="pl.239.6"></a><var>239.6</var>&#160;&#160;&#160;&#160;Sec. 28. Minnesota Statutes 2014, section 274.13, subdivision 1, is amended to read:<br />
         		<a id="pl.239.7"></a><var>239.7</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Members; meetings; rules for equalizing assessments.</b> The county <br />
         		<a id="pl.239.8"></a><var>239.8</var>commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be <br />
         		<a id="pl.239.9"></a><var>239.9</var>present, the deputy county auditor, or, if there is no deputy, the court administrator of the <br />
         		<a id="pl.239.10"></a><var>239.10</var>district court, shall form a board for the equalization of the assessment of the property <br />
         		<a id="pl.239.11"></a><var>239.11</var>of the county, including the property of all cities whose charters provide for a board of <br />
         		<a id="pl.239.12"></a><var>239.12</var>equalization. This board shall be referred to as the county board of appeal and equalization. <br />
         		<a id="pl.239.13"></a><var>239.13</var>The board shall meet annually, on the date specified in section 
         <statute_ref>274.14</statute_ref>, at the office of the <br />
         		<a id="pl.239.14"></a><var>239.14</var>auditor. Each member shall take an oath to fairly and impartially perform duties as a <br />
         		<a id="pl.239.15"></a><var>239.15</var>member. Members shall not participate in any actions of the board which result in market <br />
         		<a id="pl.239.16"></a><var>239.16</var>value adjustments or classification changes to property owned by the board member, the <br />
         		<a id="pl.239.17"></a><var>239.17</var>spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, <br />
         		<a id="pl.239.18"></a><var>239.18</var>aunt, nephew, or niece of a board member, or property in which a board member has a <br />
         		<a id="pl.239.19"></a><var>239.19</var>financial interest. The relationship may be by blood or marriage. The board shall examine <br />
         		<a id="pl.239.20"></a><var>239.20</var>and compare the returns of the assessment of property of the towns or districts, and <br />
         		<a id="pl.239.21"></a><var>239.21</var>equalize them so that each tract or lot of real property and each article or class of personal <br />
         		<a id="pl.239.22"></a><var>239.22</var>property is entered on the assessment list at its market value, subject to the following rules:<br />
         		<a id="pl.239.23"></a><var>239.23</var>&#160;&#160;&#160;&#160;(1) The board shall raise the valuation of each tract or lot of real property which <br />
         		<a id="pl.239.24"></a><var>239.24</var>in its opinion is returned below its market value to the sum believed to be its market <br />
         		<a id="pl.239.25"></a><var>239.25</var>value. The board must first give notice of intention to raise the valuation to the person in <br />
         		<a id="pl.239.26"></a><var>239.26</var>whose name it is assessed, if the person is a resident of the county. The notice must fix <br />
         		<a id="pl.239.27"></a><var>239.27</var>a time and place for a hearing.<br />
         		<a id="pl.239.28"></a><var>239.28</var>&#160;&#160;&#160;&#160;(2) The board shall reduce the valuation of each tract or lot which in its opinion is <br />
         		<a id="pl.239.29"></a><var>239.29</var>returned above its market value to the sum believed to be its market value.<br />
         		<a id="pl.239.30"></a><var>239.30</var>&#160;&#160;&#160;&#160;(3) The board shall raise the valuation of each class of personal property which <br />
         		<a id="pl.239.31"></a><var>239.31</var>in its opinion is returned below its market value to the sum believed to be its market <br />
         		<a id="pl.239.32"></a><var>239.32</var>value. It shall raise the aggregate value of the personal property of individuals, firms, or <br />
         		<a id="pl.239.33"></a><var>239.33</var>corporations, when it believes that the aggregate valuation, as returned, is less than the <br />
         		<a id="pl.239.34"></a><var>239.34</var>market value of the taxable personal property possessed by the individuals, firms, or <br />
         		<a id="pl.240.1"></a><var>240.1</var>corporations, to the sum it believes to be the market value. The board must first give notice <br />
         		<a id="pl.240.2"></a><var>240.2</var>to the persons of intention to do so. The notice must set a time and place for a hearing.<br />
         		<a id="pl.240.3"></a><var>240.3</var>&#160;&#160;&#160;&#160;(4) The board shall reduce the valuation of each class of personal property that <br />
         		<a id="pl.240.4"></a><var>240.4</var>is returned above its market value to the sum it believes to be its market value. Upon <br />
         		<a id="pl.240.5"></a><var>240.5</var>complaint of a party aggrieved, the board shall reduce the aggregate valuation of the <br />
         		<a id="pl.240.6"></a><var>240.6</var>individual's personal property, or of any class of personal property for which the individual <br />
         		<a id="pl.240.7"></a><var>240.7</var>is assessed, which in its opinion has been assessed at too large a sum, to the sum it believes <br />
         		<a id="pl.240.8"></a><var>240.8</var>was the market value of the individual's personal property of that class.<br />
         		<a id="pl.240.9"></a><var>240.9</var>&#160;&#160;&#160;&#160;(5) The board must not reduce the aggregate value of all the property of its county, as <br />
         		<a id="pl.240.10"></a><var>240.10</var>submitted to the county board of equalization, with the additions made by the auditor under <br />
         		<a id="pl.240.11"></a><var>240.11</var>this chapter, by more than one percent of its whole valuation. The board may raise the <br />
         		<a id="pl.240.12"></a><var>240.12</var>aggregate valuation of real property, and of each class of personal property, of the county, <br />
         		<a id="pl.240.13"></a><var>240.13</var>or of any town or district of the county, when it believes it is below the market value of the <br />
         		<a id="pl.240.14"></a><var>240.14</var>property, or class of property, to the aggregate amount it believes to be its market value.<br />
         		<a id="pl.240.15"></a><var>240.15</var>&#160;&#160;&#160;&#160;(6) The board shall change the classification of any property which in its opinion <br />
         		<a id="pl.240.16"></a><var>240.16</var>is not properly classified.<br />
         		<a id="pl.240.17"></a><var>240.17</var>&#160;&#160;&#160;&#160;(7) The board does not have the authority to grant an exemption or to order property <br />
         		<a id="pl.240.18"></a><var>240.18</var>removed from the tax rolls.<br />
         		<a id="pl.240.19"></a><var>240.19</var>&#160;&#160;&#160;&#160;(8) The board may not make an individual market value adjustment or classification <br />
         		<a id="pl.240.20"></a><var>240.20</var>change that would benefit property if the owner or other person having control over the <br />
         		<a id="pl.240.21"></a><var>240.21</var>property has refused the assessor access to inspect the property and the interior of any <br />
         		<a id="pl.240.22"></a><var>240.22</var>buildings or structures as provided in section 273.20.<br />
         		<a id="pl.240.23"></a><var>240.23</var><b>EFFECTIVE DATE.</b>This section is effective for county board of appeal and <br />
         		<a id="pl.240.24"></a><var>240.24</var>equalization meetings in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.14.29.0"></a><a id="pl.240.25"></a><var>240.25</var>&#160;&#160;&#160;&#160;Sec. 29. Minnesota Statutes 2014, section 274.135, subdivision 3, is amended to read:<br />
         		<a id="pl.240.26"></a><var>240.26</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Proof of compliance; transfer of duties.</b> (a) Any county that conducts <br />
         		<a id="pl.240.27"></a><var>240.27</var>county boards of appeal and equalization meetings must provide proof to the commissioner <br />
         		<a id="pl.240.28"></a><var>240.28</var>by December 1, 2009, and each year thereafter, February 1  that it is in compliance with the <br />
         		<a id="pl.240.29"></a><var>240.29</var>requirements of subdivision 2. Beginning in 2009, This notice must also verify that there <br />
         		<a id="pl.240.30"></a><var>240.30</var>was a quorum of voting members at each meeting of the board of appeal and equalization <br />
         		<a id="pl.240.31"></a><var>240.31</var>in the current previous year. A county that does not comply with these requirements is <br />
         		<a id="pl.240.32"></a><var>240.32</var>deemed to have transferred its board of appeal and equalization powers to the special <br />
         		<a id="pl.240.33"></a><var>240.33</var>board of equalization appointed pursuant to section 
         <statute_ref>274.13, subdivision 2</statute_ref>, beginning <br />
         		<a id="pl.240.34"></a><var>240.34</var>with the following year's assessment and continuing unless the powers are reinstated <br />
         		<a id="pl.240.35"></a><var>240.35</var>under paragraph (c). A county that does not comply with the requirements of subdivision <br />
         		<a id="pl.241.1"></a><var>241.1</var>2 and has not appointed a special board of equalization shall appoint a special board of <br />
         		<a id="pl.241.2"></a><var>241.2</var>equalization before the following year's assessment.<br />
         		<a id="pl.241.3"></a><var>241.3</var>&#160;&#160;&#160;&#160;(b) The county shall notify the taxpayers when the board of appeal and equalization <br />
         		<a id="pl.241.4"></a><var>241.4</var>for a county has been transferred to the special board of equalization under this subdivision <br />
         		<a id="pl.241.5"></a><var>241.5</var>and, prior to the meeting time of the special board of equalization, the county shall make <br />
         		<a id="pl.241.6"></a><var>241.6</var>available to those taxpayers a procedure for a review of the assessments, including, but <br />
         		<a id="pl.241.7"></a><var>241.7</var>not limited to, open book meetings. This alternate review process must take place in <br />
         		<a id="pl.241.8"></a><var>241.8</var>April and May.<br />
         		<a id="pl.241.9"></a><var>241.9</var>&#160;&#160;&#160;&#160;(c) A county board whose powers are transferred to the special board of equalization <br />
         		<a id="pl.241.10"></a><var>241.10</var>under this subdivision may be reinstated by resolution of the county board and upon proof <br />
         		<a id="pl.241.11"></a><var>241.11</var>of compliance with the requirements of subdivision 2. The resolution and proofs must <br />
         		<a id="pl.241.12"></a><var>241.12</var>be provided to the commissioner by December February 1 in order to be effective for <br />
         		<a id="pl.241.13"></a><var>241.13</var>the following current year's assessment.<br />
         		<a id="pl.241.14"></a><var>241.14</var>(d) If a person who was entitled to appeal to the county board of appeal and <br />
         		<a id="pl.241.15"></a><var>241.15</var>equalization or to the county special board of equalization is not able to do so in a <br />
         		<a id="pl.241.16"></a><var>241.16</var>particular year because the county board or special board did not meet the quorum and <br />
         		<a id="pl.241.17"></a><var>241.17</var>training requirements in this section and section 
         <statute_ref>274.13</statute_ref>, or because the special board <br />
         		<a id="pl.241.18"></a><var>241.18</var>was not appointed, that person may instead appeal to the commissioner of revenue, <br />
         		<a id="pl.241.19"></a><var>241.19</var>provided that the appeal is received by the commissioner prior to August 1. The appeal <br />
         		<a id="pl.241.20"></a><var>241.20</var>is not subject to either chapter 14 or section 
         <statute_ref>270C.92</statute_ref>. The commissioner must issue <br />
         		<a id="pl.241.21"></a><var>241.21</var>an appropriate order to the county assessor in response to each timely appeal, either <br />
         		<a id="pl.241.22"></a><var>241.22</var>upholding or changing the valuation or classification of the property. Prior to October 1 of <br />
         		<a id="pl.241.23"></a><var>241.23</var>each year, the commissioner must charge and bill the county where the property is located <br />
         		<a id="pl.241.24"></a><var>241.24</var>$500 for each tax parcel covered by an order issued under this paragraph in that year. <br />
         		<a id="pl.241.25"></a><var>241.25</var>Amounts received by the commissioner under this paragraph must be deposited in the <br />
         		<a id="pl.241.26"></a><var>241.26</var>state's general fund. If payment of a billed amount is not received by the commissioner <br />
         		<a id="pl.241.27"></a><var>241.27</var>before December 1 of the year when billed, the commissioner must deduct that unpaid <br />
         		<a id="pl.241.28"></a><var>241.28</var>amount from any state aid the commissioner would otherwise pay to the county under <br />
         		<a id="pl.241.29"></a><var>241.29</var>chapter 477A in the next year. Late payments may either be returned to the county <br />
         		<a id="pl.241.30"></a><var>241.30</var>uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid <br />
         		<a id="pl.241.31"></a><var>241.31</var>paid to the county under chapter 477A must be adjusted within 12 months to eliminate any <br />
         		<a id="pl.241.32"></a><var>241.32</var>reduction that occurred because the payment was late. Amounts needed to make these <br />
         		<a id="pl.241.33"></a><var>241.33</var>adjustments are included in the appropriation under section 
         <statute_ref>477A.03, subdivision 2</statute_ref>.<br />
         		<a id="pl.241.34"></a><var>241.34</var><b>EFFECTIVE DATE.</b>This section is effective for county boards of appeal and <br />
         		<a id="pl.241.35"></a><var>241.35</var>equalization meetings held in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.14.30.0"></a><a id="pl.242.1"></a><var>242.1</var>&#160;&#160;&#160;&#160;Sec. 30. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:<br />
         		<a id="pl.242.2"></a><var>242.2</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the <br />
         		<a id="pl.242.3"></a><var>242.3</var>contrary, on or before September 30, each county and each home rule charter or statutory <br />
         		<a id="pl.242.4"></a><var>242.4</var>city shall certify to the county auditor the proposed property tax levy for taxes payable in <br />
         		<a id="pl.242.5"></a><var>242.5</var>the following year.<br />
         		<a id="pl.242.6"></a><var>242.6</var>&#160;&#160;&#160;&#160;(b) Notwithstanding any law or charter to the contrary, on or before September 15, <br />
         		<a id="pl.242.7"></a><var>242.7</var>each town and each special taxing district shall adopt and certify to the county auditor a <br />
         		<a id="pl.242.8"></a><var>242.8</var>proposed property tax levy for taxes payable in the following year. For towns, the final <br />
         		<a id="pl.242.9"></a><var>242.9</var>certified levy shall also be considered the proposed levy.<br />
         		<a id="pl.242.10"></a><var>242.10</var>&#160;&#160;&#160;&#160;(c) On or before September 30, each school district that has not mutually agreed <br />
         		<a id="pl.242.11"></a><var>242.11</var>with its home county to extend this date shall certify to the county auditor the proposed <br />
         		<a id="pl.242.12"></a><var>242.12</var>property tax levy for taxes payable in the following year. Each school district that has <br />
         		<a id="pl.242.13"></a><var>242.13</var>agreed with its home county to delay the certification of its proposed property tax levy <br />
         		<a id="pl.242.14"></a><var>242.14</var>must certify its proposed property tax levy for the following year no later than October <br />
         		<a id="pl.242.15"></a><var>242.15</var>7. The school district shall certify the proposed levy as:<br />
         		<a id="pl.242.16"></a><var>242.16</var>&#160;&#160;&#160;&#160;(1) a specific dollar amount by school district fund, broken down between <br />
         		<a id="pl.242.17"></a><var>242.17</var>voter-approved and non-voter-approved levies and between referendum market value <br />
         		<a id="pl.242.18"></a><var>242.18</var>and tax capacity levies; or<br />
         		<a id="pl.242.19"></a><var>242.19</var>&#160;&#160;&#160;&#160;(2) the maximum levy limitation certified by the commissioner of education <br />
         		<a id="pl.242.20"></a><var>242.20</var>according to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br />
         		<a id="pl.242.21"></a><var>242.21</var>&#160;&#160;&#160;&#160;(d) If the board of estimate and taxation or any similar board that establishes <br />
         		<a id="pl.242.22"></a><var>242.22</var>maximum tax levies for taxing jurisdictions within a first class city certifies the maximum <br />
         		<a id="pl.242.23"></a><var>242.23</var>property tax levies for funds under its jurisdiction by charter to the county auditor by the <br />
         		<a id="pl.242.24"></a><var>242.24</var>date specified in paragraph (a), the city shall be deemed to have certified its levies for <br />
         		<a id="pl.242.25"></a><var>242.25</var>those taxing jurisdictions.<br />
         		<a id="pl.242.26"></a><var>242.26</var>&#160;&#160;&#160;&#160;(e) For purposes of this section, "special taxing district" means a special taxing <br />
         		<a id="pl.242.27"></a><var>242.27</var>district as defined in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts that levy a tax <br />
         		<a id="pl.242.28"></a><var>242.28</var>under chapter 124 or 136D, joint powers boards established under sections 
         <statute_ref>123A.44</statute_ref> to <br />
         		
         <statute_ref><a id="pl.242.29"></a><var>242.29</var>123A.446
         </statute_ref>, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are <br />
         		<a id="pl.242.30"></a><var>242.30</var>also special taxing districts for purposes of this section.<br />
         		<a id="pl.242.31"></a><var>242.31</var>(f) At the meeting at which a taxing authority, other than a town, adopts its proposed <br />
         		<a id="pl.242.32"></a><var>242.32</var>tax levy under this subdivision, the taxing authority shall announce the time and place <br />
         		<a id="pl.242.33"></a><var>242.33</var>of its any subsequent regularly scheduled meetings at which the budget and levy will be <br />
         		<a id="pl.242.34"></a><var>242.34</var>discussed and at which the public will be allowed to speak. The time and place of those <br />
         		<a id="pl.242.35"></a><var>242.35</var>meetings must be included in the proceedings or summary of proceedings published in the <br />
         		<a id="pl.242.36"></a><var>242.36</var>official newspaper of the taxing authority under section 
         <statute_ref>123B.09</statute_ref>, 
         <statute_ref>375.12</statute_ref>, or 
         <statute_ref>412.191</statute_ref>.<br />
         		<a id="pl.243.1"></a><var>243.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.31.0"></a><a id="pl.243.2"></a><var>243.2</var>&#160;&#160;&#160;&#160;Sec. 31. Minnesota Statutes 2014, section 275.62, subdivision 2, is amended to read:<br />
         		<a id="pl.243.3"></a><var>243.3</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Local governments required to report.</b> For purposes of this section, <br />
         		<a id="pl.243.4"></a><var>243.4</var>"local governmental unit" means a county, home rule charter or statutory city with a <br />
         		<a id="pl.243.5"></a><var>243.5</var>population greater than 2,500, a town with a population greater than 5,000, or a home rule <br />
         		<a id="pl.243.6"></a><var>243.6</var>charter or statutory city or town that receives a distribution from the taconite municipal aid <br />
         		<a id="pl.243.7"></a><var>243.7</var>account in the levy year.<br />
         		<a id="pl.243.8"></a><var>243.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.32.0"></a><a id="pl.243.9"></a><var>243.9</var>&#160;&#160;&#160;&#160;Sec. 32. Minnesota Statutes 2014, section 278.01, subdivision 1, is amended to read:<br />
         		<a id="pl.243.10"></a><var>243.10</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Determination of validity.</b> (a) Any person having personal property, <br />
         		<a id="pl.243.11"></a><var>243.11</var>or any estate, right, title, or interest in or lien upon any parcel of land, who claims that <br />
         		<a id="pl.243.12"></a><var>243.12</var>such property has been partially, unfairly, or unequally assessed in comparison with other <br />
         		<a id="pl.243.13"></a><var>243.13</var>property in the (1) city, or (2) county, or (3) in the case of a county containing a city of the <br />
         		<a id="pl.243.14"></a><var>243.14</var>first class, the portion of the county excluding the first class city, or that the parcel has <br />
         		<a id="pl.243.15"></a><var>243.15</var>been assessed at a valuation greater than its real or actual value, or that the tax levied <br />
         		<a id="pl.243.16"></a><var>243.16</var>against the same is illegal, in whole or in part, or has been paid, or that the property is <br />
         		<a id="pl.243.17"></a><var>243.17</var>exempt from the tax so levied, may have the validity of the claim, defense, or objection <br />
         		<a id="pl.243.18"></a><var>243.18</var>determined by the district court of the county in which the tax is levied or by the Tax <br />
         		<a id="pl.243.19"></a><var>243.19</var>Court by serving one copy of a petition for such determination upon the county auditor, <br />
         		<a id="pl.243.20"></a><var>243.20</var>one copy on the county attorney, one copy on the county treasurer, and three copies on the <br />
         		<a id="pl.243.21"></a><var>243.21</var>county assessor. The county assessor shall immediately forward one copy of the petition <br />
         		<a id="pl.243.22"></a><var>243.22</var>to the appropriate governmental authority in a home rule charter or statutory city or town <br />
         		<a id="pl.243.23"></a><var>243.23</var>in which the property is located if that city or town employs its own certified assessor. <br />
         		<a id="pl.243.24"></a><var>243.24</var>A copy of the petition shall also be forwarded by the assessor to the school board of the <br />
         		<a id="pl.243.25"></a><var>243.25</var>school district in which the property is located.<br />
         		<a id="pl.243.26"></a><var>243.26</var>(b) In counties where the office of county treasurer has been combined with the <br />
         		<a id="pl.243.27"></a><var>243.27</var>office of county auditor, the county may elect to require the petitioner to serve the number <br />
         		<a id="pl.243.28"></a><var>243.28</var>of copies as determined by the county. The county assessor shall immediately forward one <br />
         		<a id="pl.243.29"></a><var>243.29</var>copy of the petition to the appropriate governmental authority in a home rule charter or <br />
         		<a id="pl.243.30"></a><var>243.30</var>statutory city or town in which the property is located if that city or town employs its own <br />
         		<a id="pl.243.31"></a><var>243.31</var>certified assessor. A list of petitioned properties, including the name of the petitioner, the <br />
         		<a id="pl.243.32"></a><var>243.32</var>identification number of the property, and the estimated market value, shall be sent on <br />
         		<a id="pl.243.33"></a><var>243.33</var>or before the first day of July by the county auditor/treasurer to the school board of the <br />
         		<a id="pl.243.34"></a><var>243.34</var>school district in which the property is located.<br />
         		<a id="pl.244.1"></a><var>244.1</var>(c) For all counties, the petitioner must file the copies with proof of service, in the <br />
         		<a id="pl.244.2"></a><var>244.2</var>office of the court administrator of the district court on or before April 30 of the year in <br />
         		<a id="pl.244.3"></a><var>244.3</var>which the tax becomes payable. A petition for determination under this section may be <br />
         		<a id="pl.244.4"></a><var>244.4</var>transferred by the district court to the Tax Court. An appeal may also be taken to the Tax <br />
         		<a id="pl.244.5"></a><var>244.5</var>Court under chapter 271 at any time following receipt of the valuation notice that county <br />
         		<a id="pl.244.6"></a><var>244.6</var>assessors or city assessors having the powers of a county assessor are required by section <br />
         		
         <statute_ref><a id="pl.244.7"></a><var>244.7</var>273.121
         </statute_ref> to send to persons whose property is to be included on the assessment roll that <br />
         		<a id="pl.244.8"></a><var>244.8</var>year, but prior to May 1 of the year in which the taxes are payable.<br />
         		<a id="pl.244.9"></a><var>244.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.33.0"></a><a id="pl.244.10"></a><var>244.10</var>&#160;&#160;&#160;&#160;Sec. 33. Minnesota Statutes 2014, section 282.01, subdivision 1a, is amended to read:<br />
         		<a id="pl.244.11"></a><var>244.11</var>&#160;&#160;&#160;&#160;Subd. 1a. <b>Conveyance to public entities.</b> (a) Upon written request from a state <br />
         		<a id="pl.244.12"></a><var>244.12</var>agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited land <br />
         		<a id="pl.244.13"></a><var>244.13</var>must be withheld from sale or lease to others for a maximum of six months. The request <br />
         		<a id="pl.244.14"></a><var>244.14</var>must be submitted to the county auditor. Upon receipt, the county auditor must withhold <br />
         		<a id="pl.244.15"></a><var>244.15</var>the parcel from sale or lease to any other party for six months, and must confirm the <br />
         		<a id="pl.244.16"></a><var>244.16</var>starting date of the six-month withholding period to the requesting agency or subdivision. <br />
         		<a id="pl.244.17"></a><var>244.17</var>If the request is from a governmental subdivision of the state, the governmental <br />
         		<a id="pl.244.18"></a><var>244.18</var>subdivision must pay the maintenance costs incurred by the county during the period the <br />
         		<a id="pl.244.19"></a><var>244.19</var>parcel is withheld. The county board may approve a sale or conveyance to the requesting <br />
         		<a id="pl.244.20"></a><var>244.20</var>party during the withholding period. A conveyance of the property to the requesting <br />
         		<a id="pl.244.21"></a><var>244.21</var>party terminates the withholding period.<br />
         		<a id="pl.244.22"></a><var>244.22</var>A governmental subdivision of the state must not make, and a county auditor must <br />
         		<a id="pl.244.23"></a><var>244.23</var>not act upon, a second request to withhold a parcel from sale or lease within 18 months <br />
         		<a id="pl.244.24"></a><var>244.24</var>of a previous request for that parcel. A county may reject a request made under this <br />
         		<a id="pl.244.25"></a><var>244.25</var>paragraph if the request is made more than 30 days after the county has given notice to the <br />
         		<a id="pl.244.26"></a><var>244.26</var>requesting state agency or governmental subdivision of the state that the county intends to <br />
         		<a id="pl.244.27"></a><var>244.27</var>sell or otherwise dispose of the property.<br />
         		<a id="pl.244.28"></a><var>244.28</var>(b) Nonconservation tax-forfeited lands may be sold by the county board, for <br />
         		<a id="pl.244.29"></a><var>244.29</var>their market value as determined by the county board, to an organized or incorporated <br />
         		<a id="pl.244.30"></a><var>244.30</var>governmental subdivision of the state for any public purpose for which the subdivision is <br />
         		<a id="pl.244.31"></a><var>244.31</var>authorized to acquire property. When the term "market value" is used in this section, it <br />
         		<a id="pl.244.32"></a><var>244.32</var>means an estimate of the full and actual market value of the parcel as determined by the <br />
         		<a id="pl.244.33"></a><var>244.33</var>county board, but in making this determination, the board and the persons employed by or <br />
         		<a id="pl.244.34"></a><var>244.34</var>under contract with the board in order to perform, conduct, or assist in the determination, <br />
         		<a id="pl.244.35"></a><var>244.35</var>are exempt from the licensure requirements of chapter 82B.<br />
         		<a id="pl.245.1"></a><var>245.1</var>(c) Nonconservation tax-forfeited lands may be released from the trust in favor of <br />
         		<a id="pl.245.2"></a><var>245.2</var>the taxing districts on application to  sold by the county board by, for their market value as <br />
         		<a id="pl.245.3"></a><var>245.3</var>determined by the county board, to a state agency for an authorized use at not less than <br />
         		<a id="pl.245.4"></a><var>245.4</var>their market value as determined by the county board any public purpose for which the <br />
         		<a id="pl.245.5"></a><var>245.5</var>agency is authorized to acquire property.<br />
         		<a id="pl.245.6"></a><var>245.6</var>(d) Nonconservation tax-forfeited lands may be sold by the county board to an <br />
         		<a id="pl.245.7"></a><var>245.7</var>organized or incorporated governmental subdivision of the state or state agency for less <br />
         		<a id="pl.245.8"></a><var>245.8</var>than their market value if:<br />
         		<a id="pl.245.9"></a><var>245.9</var>(1) the county board determines that a sale at a reduced price is in the public interest <br />
         		<a id="pl.245.10"></a><var>245.10</var>because a reduced price is necessary to provide an incentive to correct the blighted <br />
         		<a id="pl.245.11"></a><var>245.11</var>conditions that make the lands undesirable in the open market, or the reduced price will <br />
         		<a id="pl.245.12"></a><var>245.12</var>lead to the development of affordable housing; and<br />
         		<a id="pl.245.13"></a><var>245.13</var>(2) the governmental subdivision or state agency has documented its specific plans <br />
         		<a id="pl.245.14"></a><var>245.14</var>for correcting the blighted conditions or developing affordable housing, and the specific <br />
         		<a id="pl.245.15"></a><var>245.15</var>law or laws that empower it to acquire real property in furtherance of the plans.<br />
         		<a id="pl.245.16"></a><var>245.16</var>If the sale under this paragraph is to a governmental subdivision of the state, the <br />
         		<a id="pl.245.17"></a><var>245.17</var>commissioner of revenue must convey the property on behalf of the state by quitclaim <br />
         		<a id="pl.245.18"></a><var>245.18</var>deed. If the sale under this paragraph is to a state agency, the property is released from <br />
         		<a id="pl.245.19"></a><var>245.19</var>the trust in favor of the taxing districts and the commissioner of revenue must issue a <br />
         		<a id="pl.245.20"></a><var>245.20</var>conveyance document that releases the property from the trust in favor of the taxing <br />
         		<a id="pl.245.21"></a><var>245.21</var>districts convey the property on behalf of the state by quitclaim deed to the agency.<br />
         		<a id="pl.245.22"></a><var>245.22</var>(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts <br />
         		<a id="pl.245.23"></a><var>245.23</var>may be conveyed by the commissioner of revenue in the name of the state to a <br />
         		<a id="pl.245.24"></a><var>245.24</var>governmental subdivision for an authorized public use, if an application is submitted to the <br />
         		<a id="pl.245.25"></a><var>245.25</var>commissioner which includes a statement of facts as to the use to be made of the tract and <br />
         		<a id="pl.245.26"></a><var>245.26</var>the favorable recommendation of the county board. For the purposes of this paragraph, <br />
         		<a id="pl.245.27"></a><var>245.27</var>"authorized public use" means a use that allows an indefinite segment of the public to <br />
         		<a id="pl.245.28"></a><var>245.28</var>physically use and enjoy the property in numbers appropriate to its size and use, or is for a <br />
         		<a id="pl.245.29"></a><var>245.29</var>public service facility. Authorized public uses as defined in this paragraph are limited to:<br />
         		<a id="pl.245.30"></a><var>245.30</var>(1) a road, or right-of-way for a road;<br />
         		<a id="pl.245.31"></a><var>245.31</var>(2) a park that is both available to, and accessible by, the public that contains <br />
         		<a id="pl.245.32"></a><var>245.32</var>improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;<br />
         		<a id="pl.245.33"></a><var>245.33</var>(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along <br />
         		<a id="pl.245.34"></a><var>245.34</var>with a reasonable amount of surrounding land maintained in its natural state;<br />
         		<a id="pl.246.1"></a><var>246.1</var>(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, <br />
         		<a id="pl.246.2"></a><var>246.2</var>including transit ways, park-and-ride lots, transit stations, maintenance and garage <br />
         		<a id="pl.246.3"></a><var>246.3</var>facilities, and other facilities related to a public transit system;<br />
         		<a id="pl.246.4"></a><var>246.4</var>(5) public beaches or boat launches;<br />
         		<a id="pl.246.5"></a><var>246.5</var>(6) public parking;<br />
         		<a id="pl.246.6"></a><var>246.6</var>(7) civic recreation or conference facilities; and<br />
         		<a id="pl.246.7"></a><var>246.7</var>(8) public service facilities such as fire halls, police stations, lift stations, water <br />
         		<a id="pl.246.8"></a><var>246.8</var>towers, sanitation facilities, water treatment facilities, and administrative offices.<br />
         		<a id="pl.246.9"></a><var>246.9</var>No monetary compensation or consideration is required for the conveyance, except as <br />
         		<a id="pl.246.10"></a><var>246.10</var>provided in subdivision 1g, but the conveyance is subject to the conditions provided in <br />
         		<a id="pl.246.11"></a><var>246.11</var>law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.<br />
         		<a id="pl.246.12"></a><var>246.12</var>(f) The commissioner of revenue shall convey a parcel of nonconservation <br />
         		<a id="pl.246.13"></a><var>246.13</var>tax-forfeited land to a local governmental subdivision of the state by quitclaim deed <br />
         		<a id="pl.246.14"></a><var>246.14</var>on behalf of the state upon the favorable recommendation of the county board if the <br />
         		<a id="pl.246.15"></a><var>246.15</var>governmental subdivision has certified to the board that prior to forfeiture the subdivision <br />
         		<a id="pl.246.16"></a><var>246.16</var>was entitled to the parcel under a written development agreement or instrument, but <br />
         		<a id="pl.246.17"></a><var>246.17</var>the conveyance failed to occur prior to forfeiture. No compensation or consideration is <br />
         		<a id="pl.246.18"></a><var>246.18</var>required for, and no conditions attach to, the conveyance.<br />
         		<a id="pl.246.19"></a><var>246.19</var>(g) The commissioner of revenue shall convey a parcel of nonconservation <br />
         		<a id="pl.246.20"></a><var>246.20</var>tax-forfeited land to the association of a common interest community by quitclaim deed <br />
         		<a id="pl.246.21"></a><var>246.21</var>upon the favorable recommendation of the county board if the association certifies to the <br />
         		<a id="pl.246.22"></a><var>246.22</var>board that prior to forfeiture the association was entitled to the parcel under a written <br />
         		<a id="pl.246.23"></a><var>246.23</var>agreement, but the conveyance failed to occur prior to forfeiture. No compensation or <br />
         		<a id="pl.246.24"></a><var>246.24</var>consideration is required for, and no conditions attach to, the conveyance.<br />
         		<a id="pl.246.25"></a><var>246.25</var>(h) Conservation tax-forfeited land may be sold to a governmental subdivision of <br />
         		<a id="pl.246.26"></a><var>246.26</var>the state for less than its market value for either: (1) creation or preservation of wetlands; <br />
         		<a id="pl.246.27"></a><var>246.27</var>(2) drainage or storage of storm water under a storm water management plan; or (3) <br />
         		<a id="pl.246.28"></a><var>246.28</var>preservation, or restoration and preservation, of the land in its natural state. The deed must <br />
         		<a id="pl.246.29"></a><var>246.29</var>contain a restrictive covenant limiting the use of the land to one of these purposes for <br />
         		<a id="pl.246.30"></a><var>246.30</var>30 years or until the property is reconveyed back to the state in trust. At any time, the <br />
         		<a id="pl.246.31"></a><var>246.31</var>governmental subdivision may reconvey the property to the state in trust for the taxing <br />
         		<a id="pl.246.32"></a><var>246.32</var>districts. The deed of reconveyance is subject to approval by the commissioner of revenue. <br />
         		<a id="pl.246.33"></a><var>246.33</var>No part of a purchase price determined under this paragraph shall be refunded upon a <br />
         		<a id="pl.246.34"></a><var>246.34</var>reconveyance, but the amount paid for a conveyance under this paragraph may be taken <br />
         		<a id="pl.246.35"></a><var>246.35</var>into account by the county board when setting the terms of a future sale of the same <br />
         		<a id="pl.246.36"></a><var>246.36</var>property to the same governmental subdivision under paragraph (b) or (d). If the lands <br />
         		<a id="pl.247.1"></a><var>247.1</var>are unplatted and located outside of an incorporated municipality and the commissioner <br />
         		<a id="pl.247.2"></a><var>247.2</var>of natural resources determines there is a mineral use potential, the sale is subject to the <br />
         		<a id="pl.247.3"></a><var>247.3</var>approval of the commissioner of natural resources.<br />
         		<a id="pl.247.4"></a><var>247.4</var>(i) A park and recreation board in a city of the first class is a governmental <br />
         		<a id="pl.247.5"></a><var>247.5</var>subdivision for the purposes of this section.<br />
         		<a id="pl.247.6"></a><var>247.6</var>(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed <br />
         		<a id="pl.247.7"></a><var>247.7</var>by the commissioner of revenue in the name of the state to a governmental subdivision for <br />
         		<a id="pl.247.8"></a><var>247.8</var>a school forest under section 
         <statute_ref>89.41</statute_ref>. An application that includes a statement of facts as <br />
         		<a id="pl.247.9"></a><var>247.9</var>to the use to be made of the tract and the favorable recommendation of the county board <br />
         		<a id="pl.247.10"></a><var>247.10</var>and the commissioner of natural resources must be submitted to the commissioner of <br />
         		<a id="pl.247.11"></a><var>247.11</var>revenue. No monetary compensation or consideration is required for the conveyance, but <br />
         		<a id="pl.247.12"></a><var>247.12</var>the conveyance is subject to the conditional use and reversion provisions of subdivisions <br />
         		<a id="pl.247.13"></a><var>247.13</var>1c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the <br />
         		<a id="pl.247.14"></a><var>247.14</var>property back to the state in trust for the taxing districts. The deed of reconveyance is <br />
         		<a id="pl.247.15"></a><var>247.15</var>subject to approval by the commissioner of revenue.<br />
         		<a id="pl.247.16"></a><var>247.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.34.0"></a><a id="pl.247.17"></a><var>247.17</var>&#160;&#160;&#160;&#160;Sec. 34. Minnesota Statutes 2014, section 282.01, subdivision 1d, is amended to read:<br />
         		<a id="pl.247.18"></a><var>247.18</var>&#160;&#160;&#160;&#160;Subd. 1d. <b>Reverter for failure to use; conveyance to state.</b> (a) After three years <br />
         		<a id="pl.247.19"></a><var>247.19</var>from the date of any conveyance of tax-forfeited land to a governmental subdivision for <br />
         		<a id="pl.247.20"></a><var>247.20</var>an authorized public use as provided in this section, regardless of when the deed for the <br />
         		<a id="pl.247.21"></a><var>247.21</var>authorized public use was executed, if the governmental subdivision has failed to put the <br />
         		<a id="pl.247.22"></a><var>247.22</var>land to that use, or abandons that use, the governing body of the subdivision must: (1) <br />
         		<a id="pl.247.23"></a><var>247.23</var>with the approval of the county board, purchase the property for an authorized public <br />
         		<a id="pl.247.24"></a><var>247.24</var>purpose at the present market value as determined by the county board, or (2) authorize <br />
         		<a id="pl.247.25"></a><var>247.25</var>the proper officers to convey the land, or the part of the land not required for an authorized <br />
         		<a id="pl.247.26"></a><var>247.26</var>public use, to the state of Minnesota in trust for the taxing districts. If the governing body <br />
         		<a id="pl.247.27"></a><var>247.27</var>purchases the property under clause (1), the commissioner of revenue shall, upon proper <br />
         		<a id="pl.247.28"></a><var>247.28</var>application submitted by the county auditor and upon the reconveyance of the land subject <br />
         		<a id="pl.247.29"></a><var>247.29</var>to the conditional use deed to the state, convey the property on behalf of the state by <br />
         		<a id="pl.247.30"></a><var>247.30</var>quitclaim deed to the subdivision free of a use restriction and the possibility of reversion <br />
         		<a id="pl.247.31"></a><var>247.31</var>or defeasement. If the governing body decides to reconvey the property to the state under <br />
         		<a id="pl.247.32"></a><var>247.32</var>this clause, the officers shall execute a deed of conveyance immediately. The conveyance <br />
         		<a id="pl.247.33"></a><var>247.33</var>is subject to the approval of the commissioner and its form must be approved by the <br />
         		<a id="pl.247.34"></a><var>247.34</var>attorney general. For 15 years from the date of the conveyance, there is no failure to put <br />
         		<a id="pl.247.35"></a><var>247.35</var>the land to the authorized public use and no abandonment of that use if a formal plan of <br />
         		<a id="pl.248.1"></a><var>248.1</var>the governmental subdivision, including, but not limited to, a comprehensive plan or land <br />
         		<a id="pl.248.2"></a><var>248.2</var>use plan, shows an intended future use of the land for the authorized public use.<br />
         		<a id="pl.248.3"></a><var>248.3</var>(b) Property held by a governmental subdivision of the state under a conditional use <br />
         		<a id="pl.248.4"></a><var>248.4</var>deed executed under this section by the commissioner of revenue on or after January 1, <br />
         		<a id="pl.248.5"></a><var>248.5</var>2007, may be acquired by that governmental subdivision after 15 years from the date <br />
         		<a id="pl.248.6"></a><var>248.6</var>of the conveyance if the commissioner determines upon written application from the <br />
         		<a id="pl.248.7"></a><var>248.7</var>subdivision that the subdivision has in fact put the property to the authorized public use for <br />
         		<a id="pl.248.8"></a><var>248.8</var>which it was conveyed, and the subdivision has made a finding that it has no current plans <br />
         		<a id="pl.248.9"></a><var>248.9</var>to change the use of the lands. Prior to conveying the property, the commissioner shall <br />
         		<a id="pl.248.10"></a><var>248.10</var>inquire whether the county board where the land is located objects to a conveyance of the <br />
         		<a id="pl.248.11"></a><var>248.11</var>property to the subdivision without conditions and without further act by or obligation <br />
         		<a id="pl.248.12"></a><var>248.12</var>of the subdivision. If the county does not object within 60 days, and the commissioner <br />
         		<a id="pl.248.13"></a><var>248.13</var>makes a favorable determination, the commissioner shall issue a quitclaim deed on behalf <br />
         		<a id="pl.248.14"></a><var>248.14</var>of the state unconditionally conveying the property to the governmental subdivision. For <br />
         		<a id="pl.248.15"></a><var>248.15</var>purposes of this paragraph, demonstration of an intended future use for the authorized <br />
         		<a id="pl.248.16"></a><var>248.16</var>public use in a formal plan of the governmental subdivision does not constitute use for <br />
         		<a id="pl.248.17"></a><var>248.17</var>that authorized public use.<br />
         		<a id="pl.248.18"></a><var>248.18</var>(c) Property held by a governmental subdivision of the state under a conditional use <br />
         		<a id="pl.248.19"></a><var>248.19</var>deed executed under this section by the commissioner of revenue before January 1, 2007, <br />
         		<a id="pl.248.20"></a><var>248.20</var>is released from the use restriction and possibility of reversion on January 1, 2022, if the <br />
         		<a id="pl.248.21"></a><var>248.21</var>county board records a resolution describing the land and citing this paragraph. The <br />
         		<a id="pl.248.22"></a><var>248.22</var>county board may authorize the county treasurer to deduct the amount of the recording <br />
         		<a id="pl.248.23"></a><var>248.23</var>fees from future settlements of property taxes to the subdivision.<br />
         		<a id="pl.248.24"></a><var>248.24</var>(d) Except for tax-forfeited land conveyed to establish a school forest under section <br />
         		
         <statute_ref><a id="pl.248.25"></a><var>248.25</var>89.41
         </statute_ref>, property conveyed under a conditional use deed executed under this section by <br />
         		<a id="pl.248.26"></a><var>248.26</var>the commissioner of revenue, regardless of when the deed for the authorized public use <br />
         		<a id="pl.248.27"></a><var>248.27</var>was executed, is released from the use restriction and reverter, and any use restriction or <br />
         		<a id="pl.248.28"></a><var>248.28</var>reverter for which no declaration of reversion has been recorded with the county recorder <br />
         		<a id="pl.248.29"></a><var>248.29</var>or registrar of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 <br />
         		<a id="pl.248.30"></a><var>248.30</var>years from the date the deed was acknowledged; or (3) final resolution of an appeal to <br />
         		<a id="pl.248.31"></a><var>248.31</var>district court under subdivision 1e, if a lis pendens related to the appeal is recorded in the <br />
         		<a id="pl.248.32"></a><var>248.32</var>office of the county recorder or registrar of titles, as appropriate, prior to January 1, 2015.<br />
         		<a id="pl.248.33"></a><var>248.33</var>(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a <br />
         		<a id="pl.248.34"></a><var>248.34</var>school forest under section 
         <statute_ref>89.41</statute_ref> is subject to a perpetual conditional use deed and reverter. <br />
         		<a id="pl.248.35"></a><var>248.35</var>The property reverts to the state in trust for the taxing districts by operation of law if the <br />
         		<a id="pl.248.36"></a><var>248.36</var>commissioner of natural resources determines and reports to the commissioner of revenue <br />
         		<a id="pl.249.1"></a><var>249.1</var>under section 
         <statute_ref>89.41, subdivision 3</statute_ref>, that the governmental subdivision has failed to use the <br />
         		<a id="pl.249.2"></a><var>249.2</var>land for school forest purposes for three consecutive years. The commissioner of revenue <br />
         		<a id="pl.249.3"></a><var>249.3</var>shall record a declaration of reversion for land that has reverted under this paragraph.<br />
         		<a id="pl.249.4"></a><var>249.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.35.0"></a><a id="pl.249.5"></a><var>249.5</var>&#160;&#160;&#160;&#160;Sec. 35. Minnesota Statutes 2014, section 477A.013, is amended by adding a <br />
         		<a id="pl.249.6"></a><var>249.6</var>subdivision to read:<br />
         		<a id="pl.249.7"></a><var>249.7</var>&#160;&#160;&#160;&#160;Subd. 14. <b>Communication by electronic mail.</b> Prior to receiving aid pursuant to <br />
         		<a id="pl.249.8"></a><var>249.8</var>this section, a city must register an official electronic mail address with the commissioner, <br />
         		<a id="pl.249.9"></a><var>249.9</var>which the commissioner may use as an exclusive means to communicate with the city. <br />
         		<a id="pl.249.10"></a><var>249.10</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.14.36.0"></a><a id="pl.249.11"></a><var>249.11</var>&#160;&#160;&#160;&#160;Sec. 36. Minnesota Statutes 2014, section 477A.19, is amended by adding a <br />
         		<a id="pl.249.12"></a><var>249.12</var>subdivision to read:<br />
         		<a id="pl.249.13"></a><var>249.13</var>&#160;&#160;&#160;&#160;Subd. 3a. <b>Certification.</b> On or before June 1 of each year, the commissioner of <br />
         		<a id="pl.249.14"></a><var>249.14</var>natural resources shall certify to the commissioner of revenue the number of watercraft <br />
         		<a id="pl.249.15"></a><var>249.15</var>launches and the number of watercraft trailer parking spaces in each county.<br />
         		<a id="pl.249.16"></a><var>249.16</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.14.37.0"></a><a id="pl.249.17"></a><var>249.17</var>&#160;&#160;&#160;&#160;Sec. 37. Minnesota Statutes 2014, section 477A.19, is amended by adding a <br />
         		<a id="pl.249.18"></a><var>249.18</var>subdivision to read:<br />
         		<a id="pl.249.19"></a><var>249.19</var>&#160;&#160;&#160;&#160;Subd. 3b. <b>Certification.</b> On or before June 1 of each year, the commissioner of <br />
         		<a id="pl.249.20"></a><var>249.20</var>natural resources shall certify to the commissioner of revenue the counties that complied <br />
         		<a id="pl.249.21"></a><var>249.21</var>with the requirements of subdivision 3 the prior year and are eligible to receive aid <br />
         		<a id="pl.249.22"></a><var>249.22</var>under this section.<br />
         		<a id="pl.249.23"></a><var>249.23</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.14.38.0"></a><a id="pl.249.24"></a><var>249.24</var>&#160;&#160;&#160;&#160;Sec. 38. Minnesota Statutes 2014, section 559.202, subdivision 2, is amended to read:<br />
         		<a id="pl.249.25"></a><var>249.25</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Exception.</b> This section does not apply to sales made under chapter 282 or <br />
         		<a id="pl.249.26"></a><var>249.26</var>if the purchaser is represented throughout the transaction by either:<br />
         		<a id="pl.249.27"></a><var>249.27</var>(1) a person licensed to practice law in this state; or<br />
         		<a id="pl.249.28"></a><var>249.28</var>(2) a person licensed as a real estate broker or salesperson under chapter 82, <br />
         		<a id="pl.249.29"></a><var>249.29</var>provided that the representation does not create a dual agency, as that term is defined <br />
         		<a id="pl.249.30"></a><var>249.30</var>in section 
         <statute_ref>82.55, subdivision 6</statute_ref>.<br />
         		<a id="pl.250.1"></a><var>250.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales of tax-forfeited land <br />
         		<a id="pl.250.2"></a><var>250.2</var>occurring after the day following final enactment.<br />
         		<br />
         		<a id="bill.14.39.0"></a><a id="pl.250.3"></a><var>250.3</var>&#160;&#160;&#160;&#160;Sec. 39. Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read:<br />
         		<a id="pl.250.4"></a><var>250.4</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Payment of supplemental credit.</b> (a) The commissioner must pay <br />
         		<a id="pl.250.5"></a><var>250.5</var>supplemental credit amounts to each qualifying taxpayer by October 15, 2014.<br />
         		<a id="pl.250.6"></a><var>250.6</var>(b) If the commissioner cannot locate the qualifying taxpayer by October 15, 2016, <br />
         		<a id="pl.250.7"></a><var>250.7</var>or if a qualifying taxpayer to whom a warrant was issued does not cash that warrant within <br />
         		<a id="pl.250.8"></a><var>250.8</var>two years from the date the warrant was issued, the right to the credit shall lapse and the <br />
         		<a id="pl.250.9"></a><var>250.9</var>warrant shall be deposited in the general fund.<br />
         		<a id="pl.250.10"></a><var>250.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.14.40.0"></a><a id="pl.250.11"></a><var>250.11</var>&#160;&#160;&#160;&#160;Sec. 40. Laws 2014, chapter 308, article 9, section 94, is amended to read:<br />
         		<a id="pl.250.12"></a><var>250.12</var>&#160;&#160;&#160;&#160;Sec. 94. <b>REPEALER.</b><br />
         		<a id="pl.250.13"></a><var>250.13</var>(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision <br />
         		<a id="pl.250.14"></a><var>250.14</var>19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, <br />
         		<a id="pl.250.15"></a><var>250.15</var>part 8007.0200, are repealed.<br />
         		<a id="pl.250.16"></a><var>250.16</var>(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, <br />
         		<a id="pl.250.17"></a><var>250.17</var>subdivision 2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, <br />
         		<a id="pl.250.18"></a><var>250.18</var>53, 67, 72, and 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, <br />
         		<a id="pl.250.19"></a><var>250.19</var>subdivision 3; 273.075; 273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; <br />
         		<a id="pl.250.20"></a><var>250.20</var>279.32; 281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, <br />
         		<a id="pl.250.21"></a><var>250.21</var>subdivision 4; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision <br />
         		<a id="pl.250.22"></a><var>250.22</var>7; 297A.666; 297A.71, subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, <br />
         		<a id="pl.250.23"></a><var>250.23</var>subdivision 11; 297H.10, subdivision 2; 469.174, subdivision 10c; 469.175, subdivision <br />
         		<a id="pl.250.24"></a><var>250.24</var>2b; 469.176, subdivision 1i; 469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; <br />
         		<a id="pl.250.25"></a><var>250.25</var>and 505.173, Minnesota Statutes 2013 Supplement, section 273.1103, Laws 1993, chapter <br />
         		<a id="pl.250.26"></a><var>250.26</var>375, article 9, section 47, and Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; <br />
         		<a id="pl.250.27"></a><var>250.27</var>and 8130.7500, subpart 7, are repealed.<br />
         		<a id="pl.250.28"></a><var>250.28</var>(c) Minnesota Statutes 2012, section 469.1764, is repealed.<br />
         		<a id="pl.250.29"></a><var>250.29</var>(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision <br />
         		<a id="pl.250.30"></a><var>250.30</var>38; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; <br />
         		<a id="pl.250.31"></a><var>250.31</var>469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 <br />
         		<a id="pl.250.32"></a><var>250.32</var>Supplement, section 469.340, subdivision 4, are repealed.<br />
         		<a id="pl.250.33"></a><var>250.33</var>(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.<br />
         		<a id="pl.251.1"></a><var>251.1</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from May 20, 2014, <br />
         		<a id="pl.251.2"></a><var>251.2</var>and pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027, <br />
         		<a id="pl.251.3"></a><var>251.3</var>subdivision 2, is revived and reenacted as of that date.<br />
         		<br />
         		<a id="bill.14.41.0"></a><a id="pl.251.4"></a><var>251.4</var>&#160;&#160;&#160;&#160;Sec. 41. <b> REPEALER. </b><br />
         		<a id="pl.251.5"></a><var>251.5</var>(a) Minnesota Statutes 2014, section 281.22, is repealed.<br />
         		<a id="pl.251.6"></a><var>251.6</var>(b) Minnesota Rules, part 8100.0700, is repealed.<br />
         		<a id="pl.251.7"></a><var>251.7</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective the day following final enactment. <br />
         		<a id="pl.251.8"></a><var>251.8</var>Paragraph (b) is effective beginning with assessment year 2016.<br />
         		<br />
         		<a id="bill.15.0.0"></a><div class="xtend_ce"><a id="pl.251.9"></a><var>251.9</var><b>ARTICLE 15</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.251.10"></a><var>251.10</var><b>DEPARTMENT POLICY AND TECHNICAL PROVISIONS; MISCELLANEOUS</b><br />
            		
         </div><br />
         		<a id="bill.15.1.0"></a><a id="pl.251.11"></a><var>251.11</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:<br />
         		<a id="pl.251.12"></a><var>251.12</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Annual report required.</b> Every railroad company doing business <br />
         		<a id="pl.251.13"></a><var>251.13</var>in Minnesota shall annually file with the commissioner on or before March 31 a report <br />
         		<a id="pl.251.14"></a><var>251.14</var>under oath setting forth the information prescribed by the commissioner to enable the <br />
         		<a id="pl.251.15"></a><var>251.15</var>commissioner to make the valuation and equalization required by sections 
         <statute_ref>270.80</statute_ref> to <br />
         		
         <statute_ref><a id="pl.251.16"></a><var>251.16</var>270.87
         </statute_ref>. The commissioner shall prescribe the content, format, and manner of the report <br />
         		<a id="pl.251.17"></a><var>251.17</var>pursuant to section 270C.30, except that a "law administered by the commissioner" <br />
         		<a id="pl.251.18"></a><var>251.18</var>includes the property tax laws. If a report is made by electronic means, the taxpayer's <br />
         		<a id="pl.251.19"></a><var>251.19</var>signature is defined pursuant to section 270C.304, except that a "law administered by the <br />
         		<a id="pl.251.20"></a><var>251.20</var>commissioner" includes the property tax laws.<br />
         		<a id="pl.251.21"></a><var>251.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.2.0"></a><a id="pl.251.22"></a><var>251.22</var>&#160;&#160;&#160;&#160;Sec. 2. Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read:<br />
         		<a id="pl.251.23"></a><var>251.23</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Debt.</b> (a) "Debt" means a legal obligation of a natural person to pay a fixed <br />
         		<a id="pl.251.24"></a><var>251.24</var>and certain amount of money, which equals or exceeds $25 and which is due and payable <br />
         		<a id="pl.251.25"></a><var>251.25</var>to a claimant agency. The term includes criminal fines imposed under section 
         <statute_ref>609.10</statute_ref> or <br />
         		
         <statute_ref><a id="pl.251.26"></a><var>251.26</var>609.125
         </statute_ref>, fines imposed for petty misdemeanors as defined in section 
         <statute_ref>609.02, subdivision <br />
            		<a id="pl.251.27"></a><var>251.27</var>4a
         </statute_ref>, and restitution. A debt may arise under a contractual or statutory obligation, a court <br />
         		<a id="pl.251.28"></a><var>251.28</var>order, or other legal obligation, but need not have been reduced to judgment.<br />
         		<a id="pl.251.29"></a><var>251.29</var>&#160;&#160;&#160;&#160;A debt includes any legal obligation of a current recipient of assistance which is <br />
         		<a id="pl.251.30"></a><var>251.30</var>based on overpayment of an assistance grant where that payment is based on a client <br />
         		<a id="pl.251.31"></a><var>251.31</var>waiver or an administrative or judicial finding of an intentional program violation; <br />
         		<a id="pl.251.32"></a><var>251.32</var>or where the debt is owed to a program wherein the debtor is not a client at the time <br />
         		<a id="pl.252.1"></a><var>252.1</var>notification is provided to initiate recovery under this chapter and the debtor is not a <br />
         		<a id="pl.252.2"></a><var>252.2</var>current recipient of food support, transitional child care, or transitional medical assistance.<br />
         		<a id="pl.252.3"></a><var>252.3</var>&#160;&#160;&#160;&#160;(b) A debt does not include any legal obligation to pay a claimant agency for medical <br />
         		<a id="pl.252.4"></a><var>252.4</var>care, including hospitalization if the income of the debtor at the time when the medical <br />
         		<a id="pl.252.5"></a><var>252.5</var>care was rendered does not exceed the following amount:<br />
         		<a id="pl.252.6"></a><var>252.6</var>&#160;&#160;&#160;&#160;(1) for an unmarried debtor, an income of $8,800 $12,560 or less;<br />
         		<a id="pl.252.7"></a><var>252.7</var>&#160;&#160;&#160;&#160;(2) for a debtor with one dependent, an income of $11,270 $16,080 or less;<br />
         		<a id="pl.252.8"></a><var>252.8</var>&#160;&#160;&#160;&#160;(3) for a debtor with two dependents, an income of $13,330 $19,020 or less;<br />
         		<a id="pl.252.9"></a><var>252.9</var>&#160;&#160;&#160;&#160;(4) for a debtor with three dependents, an income of $15,120 $21,580 or less;<br />
         		<a id="pl.252.10"></a><var>252.10</var>&#160;&#160;&#160;&#160;(5) for a debtor with four dependents, an income of $15,950 $22,760 or less; and<br />
         		<a id="pl.252.11"></a><var>252.11</var>&#160;&#160;&#160;&#160;(6) for a debtor with five or more dependents, an income of $16,630 $23,730 or less.<br />
         		<a id="pl.252.12"></a><var>252.12</var>For purposes of this paragraph, "debtor" means the individual whose income, <br />
         		<a id="pl.252.13"></a><var>252.13</var>together with the income of the individual's spouse, other than a separated spouse, brings <br />
         		<a id="pl.252.14"></a><var>252.14</var>the individual within the income provisions of this paragraph. For purposes of this <br />
         		<a id="pl.252.15"></a><var>252.15</var>paragraph, a spouse, other than a separated spouse, shall be considered a dependent.<br />
         		<a id="pl.252.16"></a><var>252.16</var>&#160;&#160;&#160;&#160;(c) The commissioner shall adjust the income amounts in paragraph (b) by the <br />
         		<a id="pl.252.17"></a><var>252.17</var>percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue <br />
         		<a id="pl.252.18"></a><var>252.18</var>Code, except that in section 1(f)(3)(B) the word "1999 2014" shall be substituted for <br />
         		<a id="pl.252.19"></a><var>252.19</var>the word "1992." For 2001 2016, the commissioner shall then determine the percent <br />
         		<a id="pl.252.20"></a><var>252.20</var>change from the 12 months ending on August 31, 1999 2014, to the 12 months ending on <br />
         		<a id="pl.252.21"></a><var>252.21</var>August 31, 2000 2015, and in each subsequent year, from the 12 months ending on August <br />
         		<a id="pl.252.22"></a><var>252.22</var>31, 1999 2014, to the 12 months ending on August 31 of the year preceding the taxable <br />
         		<a id="pl.252.23"></a><var>252.23</var>year. The determination of the commissioner pursuant to this subdivision shall not be <br />
         		<a id="pl.252.24"></a><var>252.24</var>considered a "rule" and shall not be subject to the Administrative Procedure Act contained <br />
         		<a id="pl.252.25"></a><var>252.25</var>in chapter 14. The income amount as adjusted must be rounded to the nearest $10 amount. <br />
         		<a id="pl.252.26"></a><var>252.26</var>If the amount ends in $5, the amount is rounded up to the nearest $10 amount.<br />
         		<a id="pl.252.27"></a><var>252.27</var>&#160;&#160;&#160;&#160;(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of <br />
         		<a id="pl.252.28"></a><var>252.28</var>the dollar amount of the premium authorized under section 
         <statute_ref>256L.15, subdivision 1a</statute_ref>.<br />
         		<a id="pl.252.29"></a><var>252.29</var><b>EFFECTIVE DATE.</b>The section is effective retroactively for debts incurred after <br />
         		<a id="pl.252.30"></a><var>252.30</var>December 31, 2014.<br />
         		<br />
         		<a id="bill.15.3.0"></a><a id="pl.252.31"></a><var>252.31</var>&#160;&#160;&#160;&#160;Sec. 3. Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read:<br />
         		<a id="pl.252.32"></a><var>252.32</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Disclosure to commissioner of human services.</b> (a) On the request <br />
         		<a id="pl.252.33"></a><var>252.33</var>of the commissioner of human services, the commissioner shall disclose return information <br />
         		<a id="pl.252.34"></a><var>252.34</var>regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to <br />
         		<a id="pl.252.35"></a><var>252.35</var>the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).<br />
         		<a id="pl.253.1"></a><var>253.1</var>&#160;&#160;&#160;&#160;(b) Data that may be disclosed are limited to data relating to the identity, <br />
         		<a id="pl.253.2"></a><var>253.2</var>whereabouts, employment, income, and property of a person owing or alleged to be owing <br />
         		<a id="pl.253.3"></a><var>253.3</var>an obligation of child support.<br />
         		<a id="pl.253.4"></a><var>253.4</var>&#160;&#160;&#160;&#160;(c) The commissioner of human services may request data only for the purposes of <br />
         		<a id="pl.253.5"></a><var>253.5</var>carrying out the child support enforcement program and to assist in the location of parents <br />
         		<a id="pl.253.6"></a><var>253.6</var>who have, or appear to have, deserted their children. Data received may be used only <br />
         		<a id="pl.253.7"></a><var>253.7</var>as set forth in section 
         <statute_ref>256.978</statute_ref>.<br />
         		<a id="pl.253.8"></a><var>253.8</var>&#160;&#160;&#160;&#160;(d) The commissioner shall provide the records and information necessary to <br />
         		<a id="pl.253.9"></a><var>253.9</var>administer the supplemental housing allowance to the commissioner of human services.<br />
         		<a id="pl.253.10"></a><var>253.10</var>&#160;&#160;&#160;&#160;(e) At the request of the commissioner of human services, the commissioner of <br />
         		<a id="pl.253.11"></a><var>253.11</var>revenue shall electronically match the Social Security numbers and names of participants <br />
         		<a id="pl.253.12"></a><var>253.12</var>in the telephone assistance plan operated under sections 
         <statute_ref>237.69</statute_ref> to 
         <statute_ref>237.71</statute_ref>, with those of <br />
         		<a id="pl.253.13"></a><var>253.13</var>property tax refund filers, and determine whether each participant's household income is <br />
         		<a id="pl.253.14"></a><var>253.14</var>within the eligibility standards for the telephone assistance plan.<br />
         		<a id="pl.253.15"></a><var>253.15</var>&#160;&#160;&#160;&#160;(f) The commissioner may provide records and information collected under sections <br />
         		
         <statute_ref><a id="pl.253.16"></a><var>253.16</var>295.50
         </statute_ref> to 
         <statute_ref>295.59</statute_ref> to the commissioner of human services for purposes of the Medicaid <br />
         		<a id="pl.253.17"></a><var>253.17</var>Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law <br />
         		<a id="pl.253.18"></a><var>253.18</var>102-234. Upon the written agreement by the United States Department of Health and <br />
         		<a id="pl.253.19"></a><var>253.19</var>Human Services to maintain the confidentiality of the data, the commissioner may provide <br />
         		<a id="pl.253.20"></a><var>253.20</var>records and information collected under sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.59</statute_ref> to the Centers for <br />
         		<a id="pl.253.21"></a><var>253.21</var>Medicare and Medicaid Services section of the United States Department of Health and <br />
         		<a id="pl.253.22"></a><var>253.22</var>Human Services for purposes of meeting federal reporting requirements.<br />
         		<a id="pl.253.23"></a><var>253.23</var>&#160;&#160;&#160;&#160;(g) The commissioner may provide records and information to the commissioner of <br />
         		<a id="pl.253.24"></a><var>253.24</var>human services as necessary to administer the early refund of refundable tax credits.<br />
         		<a id="pl.253.25"></a><var>253.25</var>&#160;&#160;&#160;&#160;(h) The commissioner may disclose information to the commissioner of human <br />
         		<a id="pl.253.26"></a><var>253.26</var>services as necessary to verify income for income verification for eligibility and premium <br />
         		<a id="pl.253.27"></a><var>253.27</var>payment under the MinnesotaCare program, under section 
         <statute_ref>256L.05, subdivision 2</statute_ref>, as well <br />
         		<a id="pl.253.28"></a><var>253.28</var>as the medical assistance program under section 256B.<br />
         		<a id="pl.253.29"></a><var>253.29</var>&#160;&#160;&#160;&#160;(i) The commissioner may disclose information to the commissioner of human <br />
         		<a id="pl.253.30"></a><var>253.30</var>services necessary to verify whether applicants or recipients for the Minnesota family <br />
         		<a id="pl.253.31"></a><var>253.31</var>investment program, general assistance, food support, Minnesota supplemental aid <br />
         		<a id="pl.253.32"></a><var>253.32</var>program, and child care assistance have claimed refundable tax credits under chapter 290 <br />
         		<a id="pl.253.33"></a><var>253.33</var>and the property tax refund under chapter 290A, and the amounts of the credits.<br />
         		<a id="pl.253.34"></a><var>253.34</var>&#160;&#160;&#160;&#160;(j) The commissioner may disclose information to the commissioner of human <br />
         		<a id="pl.253.35"></a><var>253.35</var>services necessary to verify income for purposes of calculating parental contribution <br />
         		<a id="pl.253.36"></a><var>253.36</var>amounts under section 
         <statute_ref>252.27, subdivision 2a</statute_ref>.<br />
         		<a id="pl.254.1"></a><var>254.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.4.0"></a><a id="pl.254.2"></a><var>254.2</var>&#160;&#160;&#160;&#160;Sec. 4. Minnesota Statutes 2014, section 270C.30, is amended to read:<br />
         		<a id="pl.254.3"></a><var>254.3</var><b>270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.</b><br />
         		<a id="pl.254.4"></a><var>254.4</var>Except as otherwise provided by law, the commissioner shall prescribe the content <br />
         		<a id="pl.254.5"></a><var>254.5</var>and, format, and manner of all returns and other forms required to be filed under a law <br />
         		<a id="pl.254.6"></a><var>254.6</var>administered by the commissioner, and may furnish them subject to charge on application.<br />
         		<a id="pl.254.7"></a><var>254.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.5.0"></a><a id="pl.254.8"></a><var>254.8</var>&#160;&#160;&#160;&#160;Sec. 5. Minnesota Statutes 2014, section 270C.33, subdivision 5, is amended to read:<br />
         		<a id="pl.254.9"></a><var>254.9</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Prohibition against collection during appeal period of an order.</b> No <br />
         		<a id="pl.254.10"></a><var>254.10</var>collection action can be taken on an order of assessment, or any other order imposing a <br />
         		<a id="pl.254.11"></a><var>254.11</var>liability, including the filing of liens under section 
         <statute_ref>270C.63</statute_ref>, and no late payment penalties <br />
         		<a id="pl.254.12"></a><var>254.12</var>may be imposed when a return has been filed for the tax type and period upon which the <br />
         		<a id="pl.254.13"></a><var>254.13</var>order is based, during the appeal period of an order. The appeal period of an order ends: <br />
         		<a id="pl.254.14"></a><var>254.14</var>(1) 60 days after the order has been mailed to the taxpayer notice date designated by the <br />
         		<a id="pl.254.15"></a><var>254.15</var>commissioner on the order; (2) if an administrative appeal is filed under section 
         <statute_ref>270C.35</statute_ref>, <br />
         		<a id="pl.254.16"></a><var>254.16</var>60 days after the notice date designated by the commissioner on the written determination <br />
         		<a id="pl.254.17"></a><var>254.17</var>of the administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when <br />
         		<a id="pl.254.18"></a><var>254.18</var>the decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the <br />
         		<a id="pl.254.19"></a><var>254.19</var>appeal is based upon a constitutional challenge to the tax, 60 days after final determination <br />
         		<a id="pl.254.20"></a><var>254.20</var>of the appeal. This subdivision does not apply to a jeopardy assessment under section <br />
         		
         <statute_ref><a id="pl.254.21"></a><var>254.21</var>270C.36
         </statute_ref>, or a jeopardy collection under section 
         <statute_ref>270C.36</statute_ref>.<br />
         		<a id="pl.254.22"></a><var>254.22</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December <br />
         		<a id="pl.254.23"></a><var>254.23</var>31, 2016.<br />
         		<br />
         		<a id="bill.15.6.0"></a><a id="pl.254.24"></a><var>254.24</var>&#160;&#160;&#160;&#160;Sec. 6. Minnesota Statutes 2014, section 270C.33, subdivision 8, is amended to read:<br />
         		<a id="pl.254.25"></a><var>254.25</var>&#160;&#160;&#160;&#160;Subd. 8. <b>Sufficiency of notice.</b> An assessment of tax made by the commissioner, <br />
         		<a id="pl.254.26"></a><var>254.26</var>sent postage prepaid by United States mail to the taxpayer at the taxpayer's last known <br />
         		<a id="pl.254.27"></a><var>254.27</var>address, or sent by electronic mail to the taxpayer's last known electronic mailing address <br />
         		<a id="pl.254.28"></a><var>254.28</var>as provided for in section 
         <statute_ref>325L.08</statute_ref>, is sufficient even if the taxpayer is deceased or is <br />
         		<a id="pl.254.29"></a><var>254.29</var>under a legal disability, or, in the case of a corporation, has terminated its existence, unless <br />
         		<a id="pl.254.30"></a><var>254.30</var>the commissioner has been provided with a new address by a party authorized to receive <br />
         		<a id="pl.254.31"></a><var>254.31</var>notices of assessment. Notice of an assessment is sufficient if it is sent on or before the <br />
         		<a id="pl.254.32"></a><var>254.32</var>notice date designated by the commissioner on the assessment.<br />
         		<a id="pl.255.1"></a><var>255.1</var><b>EFFECTIVE DATE.</b>This section is effective for assessments dated after December <br />
         		<a id="pl.255.2"></a><var>255.2</var>31, 2016.<br />
         		<br />
         		<a id="bill.15.7.0"></a><a id="pl.255.3"></a><var>255.3</var>&#160;&#160;&#160;&#160;Sec. 7. Minnesota Statutes 2014, section 270C.34, subdivision 2, is amended to read:<br />
         		<a id="pl.255.4"></a><var>255.4</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Procedure.</b> (a) A request for abatement of penalty under subdivision 1 or <br />
         		<a id="pl.255.5"></a><var>255.5</var>section 
         <statute_ref>289A.60, subdivision 4</statute_ref>, or a request for abatement of interest or additional tax <br />
         		<a id="pl.255.6"></a><var>255.6</var>charge, must be filed with the commissioner within 60 days of the notice date of the notice <br />
         		<a id="pl.255.7"></a><var>255.7</var>was mailed to the taxpayer's last known address, stating that a penalty has been imposed <br />
         		<a id="pl.255.8"></a><var>255.8</var>or additional tax charge. For purposes of this section, the term "notice date" means the <br />
         		<a id="pl.255.9"></a><var>255.9</var>notice date designated by the commissioner on the order or other notice that a penalty or <br />
         		<a id="pl.255.10"></a><var>255.10</var>additional tax charge has been imposed.<br />
         		<a id="pl.255.11"></a><var>255.11</var>(b) If the commissioner issues an order denying a request for abatement of penalty, <br />
         		<a id="pl.255.12"></a><var>255.12</var>interest, or additional tax charge, the taxpayer may file an administrative appeal as <br />
         		<a id="pl.255.13"></a><var>255.13</var>provided in section 
         <statute_ref>270C.35</statute_ref> or appeal to Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>.<br />
         		<a id="pl.255.14"></a><var>255.14</var>(c) If the commissioner does not issue an order on the abatement request within <br />
         		<a id="pl.255.15"></a><var>255.15</var>60 days from the date the request is received, the taxpayer may appeal to Tax Court as <br />
         		<a id="pl.255.16"></a><var>255.16</var>provided in section 
         <statute_ref>271.06</statute_ref>.<br />
         		<a id="pl.255.17"></a><var>255.17</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br />
         		<a id="pl.255.18"></a><var>255.18</var>December 31, 2016.<br />
         		<br />
         		<a id="bill.15.8.0"></a><a id="pl.255.19"></a><var>255.19</var>&#160;&#160;&#160;&#160;Sec. 8. Minnesota Statutes 2014, section 270C.347, subdivision 1, is amended to read:<br />
         		<a id="pl.255.20"></a><var>255.20</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Checks and warrants, authority to reissue.</b> Notwithstanding any <br />
         		<a id="pl.255.21"></a><var>255.21</var>other provision of law, the commissioner may, based on a showing of reasonable cause, <br />
         		<a id="pl.255.22"></a><var>255.22</var>reissue an uncashed rebate, supplemental agricultural credit, or property tax refund warrant <br />
         		<a id="pl.255.23"></a><var>255.23</var>or check that has lapsed under any provision of law relating to rebates or under section <br />
         		
         <statute_ref><a id="pl.255.24"></a><var>255.24</var>290A.18, subdivision 2
         </statute_ref>. The authority to reissue warrants or checks under this subdivision <br />
         		<a id="pl.255.25"></a><var>255.25</var>is limited to five years after the date of issuance of the original warrant or check.<br />
         		<a id="pl.255.26"></a><var>255.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.9.0"></a><a id="pl.255.27"></a><var>255.27</var>&#160;&#160;&#160;&#160;Sec. 9. Minnesota Statutes 2014, section 270C.35, subdivision 3, is amended to read:<br />
         		<a id="pl.255.28"></a><var>255.28</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Notice date.</b> For purposes of this section, the term "notice date" means the <br />
         		<a id="pl.255.29"></a><var>255.29</var>date of designated by the commissioner on the order adjusting the tax or order denying a <br />
         		<a id="pl.255.30"></a><var>255.30</var>request for abatement, or, in the case of a denied refund, the notice date of designated by <br />
         		<a id="pl.255.31"></a><var>255.31</var>the commissioner on the notice of denial.<br />
         		<a id="pl.256.1"></a><var>256.1</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br />
         		<a id="pl.256.2"></a><var>256.2</var>December 31, 2016.<br />
         		<br />
         		<a id="bill.15.10.0"></a><a id="pl.256.3"></a><var>256.3</var>&#160;&#160;&#160;&#160;Sec. 10. Minnesota Statutes 2014, section 270C.35, is amended by adding a <br />
         		<a id="pl.256.4"></a><var>256.4</var>subdivision to read:<br />
         		<a id="pl.256.5"></a><var>256.5</var>&#160;&#160;&#160;&#160;Subd. 11. <b>Dismissal of administrative appeal.</b> If a taxpayer files an administrative <br />
         		<a id="pl.256.6"></a><var>256.6</var>appeal for an order of the commissioner and also files an appeal to the Tax Court for <br />
         		<a id="pl.256.7"></a><var>256.7</var>that same order of the commissioner, the administrative appeal is dismissed and the <br />
         		<a id="pl.256.8"></a><var>256.8</var>commissioner is no longer required to make a determination of appeal under subdivision 6.<br />
         		<a id="pl.256.9"></a><var>256.9</var><b>EFFECTIVE DATE.</b>This section is effective for all administrative appeals filed <br />
         		<a id="pl.256.10"></a><var>256.10</var>after June 30, 2016.<br />
         		<br />
         		<a id="bill.15.11.0"></a><a id="pl.256.11"></a><var>256.11</var>&#160;&#160;&#160;&#160;Sec. 11. Minnesota Statutes 2014, section 270C.38, subdivision 1, is amended to read:<br />
         		<a id="pl.256.12"></a><var>256.12</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Sufficient notice.</b> (a) If no method of notification of a written <br />
         		<a id="pl.256.13"></a><var>256.13</var>determination or action of the commissioner is otherwise specifically provided for by <br />
         		<a id="pl.256.14"></a><var>256.14</var>law, notice of the determination or action sent postage prepaid by United States mail to <br />
         		<a id="pl.256.15"></a><var>256.15</var>the taxpayer or other person affected by the determination or action at the taxpayer's <br />
         		<a id="pl.256.16"></a><var>256.16</var>or person's last known address, is sufficient. If the taxpayer or person being notified is <br />
         		<a id="pl.256.17"></a><var>256.17</var>deceased or is under a legal disability, or, in the case of a corporation being notified that <br />
         		<a id="pl.256.18"></a><var>256.18</var>has terminated its existence, notice to the last known address of the taxpayer, person, or <br />
         		<a id="pl.256.19"></a><var>256.19</var>corporation is sufficient, unless the department has been provided with a new address by a <br />
         		<a id="pl.256.20"></a><var>256.20</var>party authorized to receive notices from the commissioner.<br />
         		<a id="pl.256.21"></a><var>256.21</var>(b) If a taxpayer or other person agrees to accept notification by electronic means, <br />
         		<a id="pl.256.22"></a><var>256.22</var>notice of a determination or action of the commissioner sent by electronic mail to the <br />
         		<a id="pl.256.23"></a><var>256.23</var>taxpayer's or person's last known electronic mailing address as provided for in section <br />
         		
         <statute_ref><a id="pl.256.24"></a><var>256.24</var>325L.08
         </statute_ref> is sufficient.<br />
         		<a id="pl.256.25"></a><var>256.25</var>(c) Notice of a determination or action of the commissioner is sufficient if it is sent <br />
         		<a id="pl.256.26"></a><var>256.26</var>on or before the notice date designated by the commissioner on the notice.<br />
         		<a id="pl.256.27"></a><var>256.27</var><b>EFFECTIVE DATE.</b>This section is effective for notices dated after December <br />
         		<a id="pl.256.28"></a><var>256.28</var>31, 2016.<br />
         		<br />
         		<a id="bill.15.12.0"></a><a id="pl.256.29"></a><var>256.29</var>&#160;&#160;&#160;&#160;Sec. 12. Minnesota Statutes 2014, section 270C.445, is amended by adding a <br />
         		<a id="pl.256.30"></a><var>256.30</var>subdivision to read:<br />
         		<a id="pl.256.31"></a><var>256.31</var>&#160;&#160;&#160;&#160;Subd. 9. <b>Enforcement; limitations.</b> (a) Notwithstanding any other law, the <br />
         		<a id="pl.256.32"></a><var>256.32</var>imposition of a penalty or any other action against a tax return preparer authorized by <br />
         		<a id="pl.257.1"></a><var>257.1</var>subdivision 6 with respect to a return may be taken by the commissioner within the period <br />
         		<a id="pl.257.2"></a><var>257.2</var>provided by section 289A.38 to assess tax on that return.<br />
         		<a id="pl.257.3"></a><var>257.3</var>(b) Imposition of a penalty or other action against a tax return preparer authorized <br />
         		<a id="pl.257.4"></a><var>257.4</var>by subdivision 6 other than with respect to a return must be taken by the commissioner <br />
         		<a id="pl.257.5"></a><var>257.5</var>within five years of the violation of statute.<br />
         		<a id="pl.257.6"></a><var>257.6</var><b>EFFECTIVE DATE.</b>This section is effective for tax preparation services provided <br />
         		<a id="pl.257.7"></a><var>257.7</var>after the day following final enactment.<br />
         		<br />
         		<a id="bill.15.13.0"></a><a id="pl.257.8"></a><var>257.8</var>&#160;&#160;&#160;&#160;Sec. 13. Minnesota Statutes 2014, section 270C.446, subdivision 5, is amended to read:<br />
         		<a id="pl.257.9"></a><var>257.9</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Removal from list.</b> The commissioner shall remove the name of a tax <br />
         		<a id="pl.257.10"></a><var>257.10</var>preparer from the list of tax preparers published under this section:<br />
         		<a id="pl.257.11"></a><var>257.11</var>(1) when the commissioner determines that the name was included on the list in error;<br />
         		<a id="pl.257.12"></a><var>257.12</var>(2) within 90 days three years after the preparer has demonstrated to the commissioner <br />
         		<a id="pl.257.13"></a><var>257.13</var>that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied <br />
         		<a id="pl.257.14"></a><var>257.14</var>any sentence imposed, successfully completed any probationary period imposed, and <br />
         		<a id="pl.257.15"></a><var>257.15</var>successfully completed any remedial actions required by the commissioner, the State <br />
         		<a id="pl.257.16"></a><var>257.16</var>Board of Accountancy, or the Lawyers Board of Professional Responsibility; or<br />
         		<a id="pl.257.17"></a><var>257.17</var>(3) when the commissioner has been notified that the tax preparer is deceased.<br />
         		<a id="pl.257.18"></a><var>257.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.14.0"></a><a id="pl.257.19"></a><var>257.19</var>&#160;&#160;&#160;&#160;Sec. 14. Minnesota Statutes 2014, section 270C.72, subdivision 4, is amended to read:<br />
         		<a id="pl.257.20"></a><var>257.20</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Licensing authority; duties.</b> All licensing authorities must require <br />
         		<a id="pl.257.21"></a><var>257.21</var>the applicant to provide the applicant's Social Security number or individual taxpayer <br />
         		<a id="pl.257.22"></a><var>257.22</var>identification number and Minnesota business identification number, as applicable, on <br />
         		<a id="pl.257.23"></a><var>257.23</var>all license applications. Upon request of the commissioner, the licensing authority <br />
         		<a id="pl.257.24"></a><var>257.24</var>must provide the commissioner with a list of all applicants, including the name, <br />
         		<a id="pl.257.25"></a><var>257.25</var>address, business name and address, and Social Security number, or individual taxpayer <br />
         		<a id="pl.257.26"></a><var>257.26</var>identification number and business identification number, as applicable, of each applicant. <br />
         		<a id="pl.257.27"></a><var>257.27</var>The commissioner may request from a licensing authority a list of the applicants no more <br />
         		<a id="pl.257.28"></a><var>257.28</var>than once each calendar year.<br />
         		<a id="pl.257.29"></a><var>257.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.15.0"></a><a id="pl.257.30"></a><var>257.30</var>&#160;&#160;&#160;&#160;Sec. 15. Minnesota Statutes 2014, section 271.06, subdivision 2, is amended to read:<br />
         		<a id="pl.257.31"></a><var>257.31</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Time; notice; intervention.</b> Except as otherwise provided by law, within <br />
         		<a id="pl.257.32"></a><var>257.32</var>60 days after the notice of the making and filing date of an order of the commissioner of <br />
         		<a id="pl.258.1"></a><var>258.1</var>revenue, the appellant, or the appellant's attorney, shall serve a notice of appeal upon <br />
         		<a id="pl.258.2"></a><var>258.2</var>the commissioner and file the original, with proof of such service, with the Tax Court <br />
         		<a id="pl.258.3"></a><var>258.3</var>administrator or with the court administrator of district court acting as court administrator <br />
         		<a id="pl.258.4"></a><var>258.4</var>of the Tax Court; provided, that the Tax Court, for cause shown, may by written order <br />
         		<a id="pl.258.5"></a><var>258.5</var>extend the time for appealing for an additional period not exceeding 30 days. For purposes <br />
         		<a id="pl.258.6"></a><var>258.6</var>of this section, the term "notice date" means the notice date designated by the commissioner <br />
         		<a id="pl.258.7"></a><var>258.7</var>on the order. The notice of appeal shall be in the form prescribed by the Tax Court. Within <br />
         		<a id="pl.258.8"></a><var>258.8</var>five days after receipt, the commissioner shall transmit a copy of the notice of appeal to <br />
         		<a id="pl.258.9"></a><var>258.9</var>the attorney general. The attorney general shall represent the commissioner, if requested, <br />
         		<a id="pl.258.10"></a><var>258.10</var>upon all such appeals except in cases where the attorney general has appealed in behalf of <br />
         		<a id="pl.258.11"></a><var>258.11</var>the state, or in other cases where the attorney general deems it against the interests of the <br />
         		<a id="pl.258.12"></a><var>258.12</var>state to represent the commissioner, in which event the attorney general may intervene or <br />
         		<a id="pl.258.13"></a><var>258.13</var>be substituted as an appellant in behalf of the state at any stage of the proceedings.<br />
         		<a id="pl.258.14"></a><var>258.14</var>Upon a final determination of any other matter over which the court is granted <br />
         		<a id="pl.258.15"></a><var>258.15</var>jurisdiction under section 
         <statute_ref>271.01, subdivision 5</statute_ref>, the taxpayer or the taxpayer's attorney <br />
         		<a id="pl.258.16"></a><var>258.16</var>shall file a petition or notice of appeal as provided by law with the court administrator of <br />
         		<a id="pl.258.17"></a><var>258.17</var>district court, acting in the capacity of court administrator of the Tax Court, with proof of <br />
         		<a id="pl.258.18"></a><var>258.18</var>service of the petition or notice of appeal as required by law and within the time required <br />
         		<a id="pl.258.19"></a><var>258.19</var>by law. As used in this subdivision, "final determination" includes a notice of assessment <br />
         		<a id="pl.258.20"></a><var>258.20</var>and equalization for the year in question received from the local assessor, an order of the <br />
         		<a id="pl.258.21"></a><var>258.21</var>local board of equalization, or an order of a county board of equalization.<br />
         		<a id="pl.258.22"></a><var>258.22</var>The Tax Court shall prescribe a filing system so that the notice of appeal or petition <br />
         		<a id="pl.258.23"></a><var>258.23</var>filed with the district court administrator acting as court administrator of the Tax Court is <br />
         		<a id="pl.258.24"></a><var>258.24</var>forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning <br />
         		<a id="pl.258.25"></a><var>258.25</var>property valuation for which the assessor, a local board of equalization, a county board of <br />
         		<a id="pl.258.26"></a><var>258.26</var>equalization or the commissioner of revenue has issued an order, the officer issuing the <br />
         		<a id="pl.258.27"></a><var>258.27</var>order shall be notified of the filing of the appeal. The notice of appeal or petition shall be <br />
         		<a id="pl.258.28"></a><var>258.28</var>in the form prescribed by the Tax Court.<br />
         		<a id="pl.258.29"></a><var>258.29</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December <br />
         		<a id="pl.258.30"></a><var>258.30</var>31, 2016.<br />
         		<br />
         		<a id="bill.15.16.0"></a><a id="pl.258.31"></a><var>258.31</var>&#160;&#160;&#160;&#160;Sec. 16. Minnesota Statutes 2014, section 271.06, subdivision 7, is amended to read:<br />
         		<a id="pl.258.32"></a><var>258.32</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Rules.</b> Except as provided in section 
         <statute_ref>278.05, subdivision 6</statute_ref>, the Rules <br />
         		<a id="pl.258.33"></a><var>258.33</var>of Evidence and Civil Procedure for the district court of Minnesota shall govern the <br />
         		<a id="pl.258.34"></a><var>258.34</var>procedures in the Tax Court, where practicable. The Rules of Civil Procedure do not apply <br />
         		<a id="pl.258.35"></a><var>258.35</var>to alter the 60-day period of time to file a notice of appeal provided in subdivision 2. The <br />
         		<a id="pl.259.1"></a><var>259.1</var>Tax Court may adopt rules under chapter 14. The rules in effect on January 1, 1989, <br />
         		<a id="pl.259.2"></a><var>259.2</var>apply until superseded.<br />
         		<a id="pl.259.3"></a><var>259.3</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December <br />
         		<a id="pl.259.4"></a><var>259.4</var>31, 2016.<br />
         		<br />
         		<a id="bill.15.17.0"></a><a id="pl.259.5"></a><var>259.5</var>&#160;&#160;&#160;&#160;Sec. 17. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:<br />
         		<a id="pl.259.6"></a><var>259.6</var>&#160;&#160;&#160;&#160;Subd. 10. <b>Personal property used for pollution control.</b> Personal property used <br />
         		<a id="pl.259.7"></a><var>259.7</var>primarily for the abatement and control of air, water, or land pollution is exempt to the <br />
         		<a id="pl.259.8"></a><var>259.8</var>extent that it is so used, and real property is exempt if it is used primarily for abatement <br />
         		<a id="pl.259.9"></a><var>259.9</var>and control of air, water, or land pollution as part of an agricultural operation, as a part <br />
         		<a id="pl.259.10"></a><var>259.10</var>of a centralized treatment and recovery facility operating under a permit issued by the <br />
         		<a id="pl.259.11"></a><var>259.11</var>Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota <br />
         		<a id="pl.259.12"></a><var>259.12</var>Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater <br />
         		<a id="pl.259.13"></a><var>259.13</var>treatment facility and for the treatment, recovery, and stabilization of metals, oils, <br />
         		<a id="pl.259.14"></a><var>259.14</var>chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as <br />
         		<a id="pl.259.15"></a><var>259.15</var>part of an electric generation system. For purposes of this subdivision, personal property <br />
         		<a id="pl.259.16"></a><var>259.16</var>includes ponderous machinery and equipment used in a business or production activity <br />
         		<a id="pl.259.17"></a><var>259.17</var>that at common law is considered real property.<br />
         		<a id="pl.259.18"></a><var>259.18</var>Any taxpayer requesting exemption of all or a portion of any real property or any <br />
         		<a id="pl.259.19"></a><var>259.19</var>equipment or device, or part thereof, operated primarily for the control or abatement of air, <br />
         		<a id="pl.259.20"></a><var>259.20</var>water, or land pollution shall file an application with the commissioner of revenue. The <br />
         		<a id="pl.259.21"></a><var>259.21</var>commissioner shall develop an electronic means to notify interested parties when electric <br />
         		<a id="pl.259.22"></a><var>259.22</var>power generation facilities have filed an application. The commissioner shall prescribe <br />
         		<a id="pl.259.23"></a><var>259.23</var>the content, format, and manner of the application pursuant to section 270C.30, except <br />
         		<a id="pl.259.24"></a><var>259.24</var>that a "law administered by the commissioner" includes the property tax laws, and if an <br />
         		<a id="pl.259.25"></a><var>259.25</var>application is made by electronic means, the taxpayer's signature is defined pursuant to <br />
         		<a id="pl.259.26"></a><var>259.26</var>section 270C.304, except that a "law administered by the commissioner" includes the <br />
         		<a id="pl.259.27"></a><var>259.27</var>property tax laws. The Minnesota Pollution Control Agency shall upon request of the <br />
         		<a id="pl.259.28"></a><var>259.28</var>commissioner furnish information and advice to the commissioner.<br />
         		<a id="pl.259.29"></a><var>259.29</var>The information and advice furnished by the Minnesota Pollution Control <br />
         		<a id="pl.259.30"></a><var>259.30</var>Agency must include statements as to whether the equipment, device, or real property <br />
         		<a id="pl.259.31"></a><var>259.31</var>meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution <br />
         		<a id="pl.259.32"></a><var>259.32</var>Control Agency, and whether the equipment, device, or real property is installed or <br />
         		<a id="pl.259.33"></a><var>259.33</var>operated in accordance with it. On determining that property qualifies for exemption, <br />
         		<a id="pl.259.34"></a><var>259.34</var>the commissioner shall issue an order exempting the property from taxation. The <br />
         		<a id="pl.259.35"></a><var>259.35</var>commissioner shall develop an electronic means to notify interested parties when <br />
         		<a id="pl.260.1"></a><var>260.1</var>the commissioner has issued an order exempting property from taxation under this <br />
         		<a id="pl.260.2"></a><var>260.2</var>subdivision. The equipment, device, or real property shall continue to be exempt from <br />
         		<a id="pl.260.3"></a><var>260.3</var>taxation as long as the order issued by the commissioner remains in effect.<br />
         		<a id="pl.260.4"></a><var>260.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.18.0"></a><a id="pl.260.5"></a><var>260.5</var>&#160;&#160;&#160;&#160;Sec. 18. Minnesota Statutes 2014, section 272.0211, subdivision 1, is amended to read:<br />
         		<a id="pl.260.6"></a><var>260.6</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Efficiency determination and certification.</b> An owner or operator <br />
         		<a id="pl.260.7"></a><var>260.7</var>of a new or existing electric power generation facility, excluding wind energy conversion <br />
         		<a id="pl.260.8"></a><var>260.8</var>systems, may apply to the commissioner of revenue for a market value exclusion on the <br />
         		<a id="pl.260.9"></a><var>260.9</var>property as provided for in this section. This exclusion shall apply only to the market <br />
         		<a id="pl.260.10"></a><var>260.10</var>value of the equipment of the facility, and shall not apply to the structures and the land <br />
         		<a id="pl.260.11"></a><var>260.11</var>upon which the facility is located. The commissioner of revenue shall prescribe the forms <br />
         		<a id="pl.260.12"></a><var>260.12</var>content, format, manner, and procedures for this application pursuant to section 270C.30, <br />
         		<a id="pl.260.13"></a><var>260.13</var>except that a "law administered by the commissioner" includes the property tax laws. If <br />
         		<a id="pl.260.14"></a><var>260.14</var>an application is made by electronic means, the taxpayer's signature is defined pursuant <br />
         		<a id="pl.260.15"></a><var>260.15</var>to section 270C.304, except that a "law administered by the commissioner" includes the <br />
         		<a id="pl.260.16"></a><var>260.16</var>property tax laws. Upon receiving the application, the commissioner of revenue shall: (1) <br />
         		<a id="pl.260.17"></a><var>260.17</var>request the commissioner of commerce to make a determination of the efficiency of the <br />
         		<a id="pl.260.18"></a><var>260.18</var>applicant's electric power generation facility; and (2) shall develop an electronic means to <br />
         		<a id="pl.260.19"></a><var>260.19</var>notify interested parties when electric power generation facilities have filed an application. <br />
         		<a id="pl.260.20"></a><var>260.20</var>The commissioner of commerce shall calculate efficiency as the ratio of useful energy <br />
         		<a id="pl.260.21"></a><var>260.21</var>outputs to energy inputs, expressed as a percentage, based on the performance of the <br />
         		<a id="pl.260.22"></a><var>260.22</var>facility's equipment during normal full load operation. The commissioner must include in <br />
         		<a id="pl.260.23"></a><var>260.23</var>this formula the energy used in any on-site preparation of materials necessary to convert <br />
         		<a id="pl.260.24"></a><var>260.24</var>the materials into the fuel used to generate electricity, such as a process to gasify petroleum <br />
         		<a id="pl.260.25"></a><var>260.25</var>coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in <br />
         		<a id="pl.260.26"></a><var>260.26</var>the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible <br />
         		<a id="pl.260.27"></a><var>260.27</var>project under section 
         <statute_ref>216B.2424</statute_ref>; for these instances, the commissioner shall adjust the <br />
         		<a id="pl.260.28"></a><var>260.28</var>heating value to allow for energy consumed for evaporation of the moisture in the wood. <br />
         		<a id="pl.260.29"></a><var>260.29</var>The applicant shall provide the commissioner of commerce with whatever information the <br />
         		<a id="pl.260.30"></a><var>260.30</var>commissioner deems necessary to make the determination. Within 30 days of the receipt <br />
         		<a id="pl.260.31"></a><var>260.31</var>of the necessary information, the commissioner of commerce shall certify the findings of <br />
         		<a id="pl.260.32"></a><var>260.32</var>the efficiency determination to the commissioner of revenue and to the applicant. The <br />
         		<a id="pl.260.33"></a><var>260.33</var>commissioner of commerce shall determine the efficiency of the facility and certify the <br />
         		<a id="pl.260.34"></a><var>260.34</var>findings of that determination to the commissioner of revenue every two years thereafter <br />
         		<a id="pl.260.35"></a><var>260.35</var>from the date of the original certification.<br />
         		<a id="pl.261.1"></a><var>261.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.19.0"></a><a id="pl.261.2"></a><var>261.2</var>&#160;&#160;&#160;&#160;Sec. 19. Minnesota Statutes 2014, section 272.025, subdivision 1, is amended to read:<br />
         		<a id="pl.261.3"></a><var>261.3</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Statement of exemption.</b> (a) Except in the case of property owned <br />
         		<a id="pl.261.4"></a><var>261.4</var>by the state of Minnesota or any political subdivision thereof, and property exempt from <br />
         		<a id="pl.261.5"></a><var>261.5</var>taxation under section 
         <statute_ref>272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22</statute_ref> to 25, and at <br />
         		<a id="pl.261.6"></a><var>261.6</var>the times provided in subdivision 3, a taxpayer claiming an exemption from taxation <br />
         		<a id="pl.261.7"></a><var>261.7</var>on property described in section 
         <statute_ref>272.02</statute_ref>, subdivisions 2 to 33, must file a statement of <br />
         		<a id="pl.261.8"></a><var>261.8</var>exemption with the assessor of the assessment district in which the property is located.<br />
         		<a id="pl.261.9"></a><var>261.9</var>(b) A taxpayer claiming an exemption from taxation on property described in section <br />
         		
         <statute_ref><a id="pl.261.10"></a><var>261.10</var>272.02, subdivision 10
         </statute_ref>, must file a statement of exemption with the commissioner of <br />
         		<a id="pl.261.11"></a><var>261.11</var>revenue, on or before February 15 of each year for which the taxpayer claims an exemption.<br />
         		<a id="pl.261.12"></a><var>261.12</var>(c) In case of sickness, absence or other disability or for good cause, the assessor <br />
         		<a id="pl.261.13"></a><var>261.13</var>or the commissioner may extend the time for filing the statement of exemption for a <br />
         		<a id="pl.261.14"></a><var>261.14</var>period not to exceed 60 days.<br />
         		<a id="pl.261.15"></a><var>261.15</var>(d) The commissioner of revenue shall prescribe the form and contents content, <br />
         		<a id="pl.261.16"></a><var>261.16</var>format, and manner of the statement of exemption pursuant to section 270C.30, except <br />
         		<a id="pl.261.17"></a><var>261.17</var>that a "law administered by the commissioner" includes the property tax laws.<br />
         		<a id="pl.261.18"></a><var>261.18</var>(e) If a statement is made by electronic means, the taxpayer's signature is defined <br />
         		<a id="pl.261.19"></a><var>261.19</var>pursuant to section 270C.304, except that a "law administered by the commissioner" <br />
         		<a id="pl.261.20"></a><var>261.20</var>includes the property tax laws.<br />
         		<a id="pl.261.21"></a><var>261.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.20.0"></a><a id="pl.261.22"></a><var>261.22</var>&#160;&#160;&#160;&#160;Sec. 20. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:<br />
         		<a id="pl.261.23"></a><var>261.23</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Reports.</b> (a) An owner of a wind energy conversion system subject to tax <br />
         		<a id="pl.261.24"></a><var>261.24</var>under subdivision 3 shall file a report with the commissioner of revenue annually on or <br />
         		<a id="pl.261.25"></a><var>261.25</var>before February 1 January 15 detailing the amount of electricity in kilowatt-hours that <br />
         		<a id="pl.261.26"></a><var>261.26</var>was produced by the wind energy conversion system for the previous calendar year. The <br />
         		<a id="pl.261.27"></a><var>261.27</var>commissioner shall prescribe the form content, format, and manner of the report pursuant <br />
         		<a id="pl.261.28"></a><var>261.28</var>to section 270C.30, except that a "law administered by the commissioner" includes the <br />
         		<a id="pl.261.29"></a><var>261.29</var>property tax laws. The report must contain the information required by the commissioner <br />
         		<a id="pl.261.30"></a><var>261.30</var>to determine the tax due to each county under this section for the current year. If an owner <br />
         		<a id="pl.261.31"></a><var>261.31</var>of a wind energy conversion system subject to taxation under this section fails to file the <br />
         		<a id="pl.261.32"></a><var>261.32</var>report by the due date, the commissioner of revenue shall determine the tax based upon <br />
         		<a id="pl.261.33"></a><var>261.33</var>the nameplate capacity of the system multiplied by a capacity factor of 60 percent.<br />
         		<a id="pl.262.1"></a><var>262.1</var>(b) If a report is made by electronic means, the taxpayer's signature is defined <br />
         		<a id="pl.262.2"></a><var>262.2</var>pursuant to section 270C.304, except that a "law administered by the commissioner" <br />
         		<a id="pl.262.3"></a><var>262.3</var>includes the property tax laws.<br />
         		<a id="pl.262.4"></a><var>262.4</var>(b) (c) On or before February 28, the commissioner of revenue shall notify the owner <br />
         		<a id="pl.262.5"></a><var>262.5</var>of the wind energy conversion systems of the tax due to each county for the current year <br />
         		<a id="pl.262.6"></a><var>262.6</var>and shall certify to the county auditor of each county in which the systems are located the <br />
         		<a id="pl.262.7"></a><var>262.7</var>tax due from each owner for the current year.<br />
         		<a id="pl.262.8"></a><var>262.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br />
         		<a id="pl.262.9"></a><var>262.9</var>except that the amendment in paragraph (a) moving the date to file the report is effective <br />
         		<a id="pl.262.10"></a><var>262.10</var>for reports filed in 2017 and thereafter.<br />
         		<br />
         		<a id="bill.15.21.0"></a><a id="pl.262.11"></a><var>262.11</var>&#160;&#160;&#160;&#160;Sec. 21. Minnesota Statutes 2014, section 272.0295, subdivision 4, is amended to read:<br />
         		<a id="pl.262.12"></a><var>262.12</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Reports.</b> An owner of a solar energy generating system subject to tax <br />
         		<a id="pl.262.13"></a><var>262.13</var>under this section shall file a report with the commissioner of revenue annually on or <br />
         		<a id="pl.262.14"></a><var>262.14</var>before January 15 detailing the amount of electricity in megawatt-hours that was produced <br />
         		<a id="pl.262.15"></a><var>262.15</var>by the system in the previous calendar year. The commissioner shall prescribe the form <br />
         		<a id="pl.262.16"></a><var>262.16</var>content, format, and manner of the report pursuant to section 270C.30. The report must <br />
         		<a id="pl.262.17"></a><var>262.17</var>contain the information required by the commissioner to determine the tax due to each <br />
         		<a id="pl.262.18"></a><var>262.18</var>county under this section for the current year. If an owner of a solar energy generating <br />
         		<a id="pl.262.19"></a><var>262.19</var>system subject to taxation under this section fails to file the report by the due date, the <br />
         		<a id="pl.262.20"></a><var>262.20</var>commissioner of revenue shall determine the tax based upon the nameplate capacity of <br />
         		<a id="pl.262.21"></a><var>262.21</var>the system multiplied by a capacity factor of 30 percent.<br />
         		<a id="pl.262.22"></a><var>262.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.22.0"></a><a id="pl.262.23"></a><var>262.23</var>&#160;&#160;&#160;&#160;Sec. 22. Minnesota Statutes 2014, section 272.115, subdivision 2, is amended to read:<br />
         		<a id="pl.262.24"></a><var>262.24</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Form; information required.</b> The certificate of value shall require <br />
         		<a id="pl.262.25"></a><var>262.25</var>such facts and information as may be determined by the commissioner to be reasonably <br />
         		<a id="pl.262.26"></a><var>262.26</var>necessary in the administration of the state education aid formulas. The form <br />
         		<a id="pl.262.27"></a><var>262.27</var>commissioner shall prescribe the content, format, and manner of the certificate of value <br />
         		<a id="pl.262.28"></a><var>262.28</var>shall be prescribed by the Department of Revenue which shall provide an adequate <br />
         		<a id="pl.262.29"></a><var>262.29</var>supply of forms to each county auditor pursuant to section 270C.30, except that a "law <br />
         		<a id="pl.262.30"></a><var>262.30</var>administered by the commissioner" includes the property tax laws.<br />
         		<a id="pl.262.31"></a><var>262.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.23.0"></a><a id="pl.262.32"></a><var>262.32</var>&#160;&#160;&#160;&#160;Sec. 23. Minnesota Statutes 2014, section 273.124, subdivision 13, is amended to read:<br />
         		<a id="pl.263.1"></a><var>263.1</var>&#160;&#160;&#160;&#160;Subd. 13. <b>Homestead application.</b> (a) A person who meets the homestead <br />
         		<a id="pl.263.2"></a><var>263.2</var>requirements under subdivision 1 must file a homestead application with the county <br />
         		<a id="pl.263.3"></a><var>263.3</var>assessor to initially obtain homestead classification.<br />
         		<a id="pl.263.4"></a><var>263.4</var>&#160;&#160;&#160;&#160;(b) The format and contents of a uniform homestead application shall be prescribed <br />
         		<a id="pl.263.5"></a><var>263.5</var>by the commissioner of revenue.  The commissioner shall prescribe the content, format, <br />
         		<a id="pl.263.6"></a><var>263.6</var>and manner of the homestead application required to be filed under this chapter pursuant <br />
         		<a id="pl.263.7"></a><var>263.7</var>to section 270C.30. The application must clearly inform the taxpayer that this application <br />
         		<a id="pl.263.8"></a><var>263.8</var>must be signed by all owners who occupy the property or by the qualifying relative and <br />
         		<a id="pl.263.9"></a><var>263.9</var>returned to the county assessor in order for the property to receive homestead treatment.<br />
         		<a id="pl.263.10"></a><var>263.10</var>&#160;&#160;&#160;&#160;(c) Every property owner applying for homestead classification must furnish to the <br />
         		<a id="pl.263.11"></a><var>263.11</var>county assessor the Social Security number of each occupant who is listed as an owner <br />
         		<a id="pl.263.12"></a><var>263.12</var>of the property on the deed of record, the name and address of each owner who does not <br />
         		<a id="pl.263.13"></a><var>263.13</var>occupy the property, and the name and Social Security number of each owner's spouse who <br />
         		<a id="pl.263.14"></a><var>263.14</var>occupies the property. The application must be signed by each owner who occupies the <br />
         		<a id="pl.263.15"></a><var>263.15</var>property and by each owner's spouse who occupies the property, or, in the case of property <br />
         		<a id="pl.263.16"></a><var>263.16</var>that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.<br />
         		<a id="pl.263.17"></a><var>263.17</var>&#160;&#160;&#160;&#160;If a property owner occupies a homestead, the property owner's spouse may not <br />
         		<a id="pl.263.18"></a><var>263.18</var>claim another property as a homestead unless the property owner and the property owner's <br />
         		<a id="pl.263.19"></a><var>263.19</var>spouse file with the assessor an affidavit or other proof required by the assessor stating that <br />
         		<a id="pl.263.20"></a><var>263.20</var>the property qualifies as a homestead under subdivision 1, paragraph (e).<br />
         		<a id="pl.263.21"></a><var>263.21</var>&#160;&#160;&#160;&#160;Owners or spouses occupying residences owned by their spouses and previously <br />
         		<a id="pl.263.22"></a><var>263.22</var>occupied with the other spouse, either of whom fail to include the other spouse's name <br />
         		<a id="pl.263.23"></a><var>263.23</var>and Social Security number on the homestead application or provide the affidavits or <br />
         		<a id="pl.263.24"></a><var>263.24</var>other proof requested, will be deemed to have elected to receive only partial homestead <br />
         		<a id="pl.263.25"></a><var>263.25</var>treatment of their residence. The remainder of the residence will be classified as <br />
         		<a id="pl.263.26"></a><var>263.26</var>nonhomestead residential. When an owner or spouse's name and Social Security number <br />
         		<a id="pl.263.27"></a><var>263.27</var>appear on homestead applications for two separate residences and only one application is <br />
         		<a id="pl.263.28"></a><var>263.28</var>signed, the owner or spouse will be deemed to have elected to homestead the residence for <br />
         		<a id="pl.263.29"></a><var>263.29</var>which the application was signed.<br />
         		<a id="pl.263.30"></a><var>263.30</var>&#160;&#160;&#160;&#160;(d) If residential real estate is occupied and used for purposes of a homestead by a <br />
         		<a id="pl.263.31"></a><var>263.31</var>relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in <br />
         		<a id="pl.263.32"></a><var>263.32</var>order for the property to receive homestead status, a homestead application must be filed <br />
         		<a id="pl.263.33"></a><var>263.33</var>with the assessor. The Social Security number of each relative and spouse of a relative <br />
         		<a id="pl.263.34"></a><var>263.34</var>occupying the property shall be required on the homestead application filed under this <br />
         		<a id="pl.263.35"></a><var>263.35</var>subdivision. If a different relative of the owner subsequently occupies the property, the <br />
         		<a id="pl.263.36"></a><var>263.36</var>owner of the property must notify the assessor within 30 days of the change in occupancy. <br />
         		<a id="pl.264.1"></a><var>264.1</var>The Social Security number of a relative or relative's spouse occupying the property <br />
         		<a id="pl.264.2"></a><var>264.2</var>is private data on individuals as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but may be <br />
         		<a id="pl.264.3"></a><var>264.3</var>disclosed to the commissioner of revenue, or, for the purposes of proceeding under the <br />
         		<a id="pl.264.4"></a><var>264.4</var>Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.<br />
         		<a id="pl.264.5"></a><var>264.5</var>&#160;&#160;&#160;&#160;(e) The homestead application shall also notify the property owners that if the <br />
         		<a id="pl.264.6"></a><var>264.6</var>property is granted homestead status for any assessment year, that same property shall <br />
         		<a id="pl.264.7"></a><var>264.7</var>remain classified as homestead until the property is sold or transferred to another person, <br />
         		<a id="pl.264.8"></a><var>264.8</var>or the owners, the spouse of the owner, or the relatives no longer use the property as their <br />
         		<a id="pl.264.9"></a><var>264.9</var>homestead. Upon the sale or transfer of the homestead property, a certificate of value must <br />
         		<a id="pl.264.10"></a><var>264.10</var>be timely filed with the county auditor as provided under section 
         <statute_ref>272.115</statute_ref>. Failure to <br />
         		<a id="pl.264.11"></a><var>264.11</var>notify the assessor within 30 days that the property has been sold, transferred, or that the <br />
         		<a id="pl.264.12"></a><var>264.12</var>owner, the spouse of the owner, or the relative is no longer occupying the property as a <br />
         		<a id="pl.264.13"></a><var>264.13</var>homestead, shall result in the penalty provided under this subdivision and the property <br />
         		<a id="pl.264.14"></a><var>264.14</var>will lose its current homestead status.<br />
         		<a id="pl.264.15"></a><var>264.15</var>&#160;&#160;&#160;&#160;(f) If a homestead application has not been filed with the county by December 15, <br />
         		<a id="pl.264.16"></a><var>264.16</var>the assessor shall classify the property as nonhomestead for the current assessment year <br />
         		<a id="pl.264.17"></a><var>264.17</var>for taxes payable in the following year, provided that the owner may be entitled to receive <br />
         		<a id="pl.264.18"></a><var>264.18</var>the homestead classification by proper application under section 
         <statute_ref>375.192</statute_ref>.<br />
         		<a id="pl.264.19"></a><var>264.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.24.0"></a><a id="pl.264.20"></a><var>264.20</var>&#160;&#160;&#160;&#160;Sec. 24. Minnesota Statutes 2014, section 273.371, is amended to read:<br />
         		<a id="pl.264.21"></a><var>264.21</var><b>273.371 REPORTS OF UTILITY COMPANIES.</b><br />
         		<a id="pl.264.22"></a><var>264.22</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Report required.</b> Every electric light, power, gas, water, express, <br />
         		<a id="pl.264.23"></a><var>264.23</var>stage, and transportation company and pipeline company doing business in Minnesota <br />
         		<a id="pl.264.24"></a><var>264.24</var>shall annually file with the commissioner on or before March 31 a report under oath <br />
         		<a id="pl.264.25"></a><var>264.25</var>setting forth the information prescribed by the commissioner to enable the commissioner <br />
         		<a id="pl.264.26"></a><var>264.26</var>to make valuations, recommended valuations, and equalization required under sections <br />
         		
         <statute_ref><a id="pl.264.27"></a><var>264.27</var>273.33
         </statute_ref>, 
         <statute_ref>273.35</statute_ref>, 
         <statute_ref>273.36</statute_ref>, 
         <statute_ref>273.37</statute_ref>, and 
         <statute_ref>273.3711</statute_ref>. The commissioner shall prescribe the <br />
         		<a id="pl.264.28"></a><var>264.28</var>content, format, and manner of the report pursuant to section 270C.30, except that <br />
         		<a id="pl.264.29"></a><var>264.29</var>a "law administered by the commissioner" includes the property tax laws. If all the <br />
         		<a id="pl.264.30"></a><var>264.30</var>required information is not available on March 31, the company or pipeline shall file the <br />
         		<a id="pl.264.31"></a><var>264.31</var>information that is available on or before March 31, and the balance of the information <br />
         		<a id="pl.264.32"></a><var>264.32</var>as soon as it becomes available. If a report is made by electronic means, the taxpayer's <br />
         		<a id="pl.264.33"></a><var>264.33</var>signature is defined pursuant to section 270C.304, except that a "law administered by the <br />
         		<a id="pl.264.34"></a><var>264.34</var>commissioner" includes the property tax laws.<br />
         		<a id="pl.265.1"></a><var>265.1</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Extension.</b> The commissioner for good cause may extend the time for <br />
         		<a id="pl.265.2"></a><var>265.2</var>filing the report required by subdivision 1. The extension may must not exceed 15 days.<br />
         		<a id="pl.265.3"></a><var>265.3</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Reports filed by the commissioner.</b> If a company fails to file a report <br />
         		<a id="pl.265.4"></a><var>265.4</var>required by subdivision 1, the commissioner may, from information in the commissioner's <br />
         		<a id="pl.265.5"></a><var>265.5</var>possession or obtainable by the commissioner, make and file a report for the company or <br />
         		<a id="pl.265.6"></a><var>265.6</var>make the valuations, recommended valuations, and equalizations required under sections <br />
         		<a id="pl.265.7"></a><var>265.7</var>273.33, 273.35 to 273.37, and 273.3711.<br />
         		<a id="pl.265.8"></a><var>265.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.25.0"></a><a id="pl.265.9"></a><var>265.9</var>&#160;&#160;&#160;&#160;Sec. 25. Minnesota Statutes 2014, section 287.2205, is amended to read:<br />
         		<a id="pl.265.10"></a><var>265.10</var><b>287.2205 TAX-FORFEITED LAND.</b><br />
         		<a id="pl.265.11"></a><var>265.11</var>&#160;&#160;&#160;&#160;Before a state deed for tax-forfeited land may be issued, the deed tax must be paid <br />
         		<a id="pl.265.12"></a><var>265.12</var>by the purchaser of tax-forfeited land whether the purchase is the result of a public <br />
         		<a id="pl.265.13"></a><var>265.13</var>auction or private sale or a repurchase of tax-forfeited land. State agencies and local <br />
         		<a id="pl.265.14"></a><var>265.14</var>units of government that acquire tax-forfeited land by purchase or any other means are <br />
         		<a id="pl.265.15"></a><var>265.15</var>subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a <br />
         		<a id="pl.265.16"></a><var>265.16</var>governmental subdivision for an authorized public use under section 
         <statute_ref>282.01, subdivision <br />
            		<a id="pl.265.17"></a><var>265.17</var>1a
         </statute_ref>, for a school forest under section 282.01, subdivision 1a, or for redevelopment purposes <br />
         		<a id="pl.265.18"></a><var>265.18</var>under section 
         <statute_ref>282.01, subdivision 1b</statute_ref>.<br />
         		<a id="pl.265.19"></a><var>265.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.26.0"></a><a id="pl.265.20"></a><var>265.20</var>&#160;&#160;&#160;&#160;Sec. 26. Minnesota Statutes 2014, section 289A.08, is amended by adding a <br />
         		<a id="pl.265.21"></a><var>265.21</var>subdivision to read:<br />
         		<a id="pl.265.22"></a><var>265.22</var>&#160;&#160;&#160;&#160;Subd. 17. <b>Format.</b> The commissioner shall prescribe the content, format, and <br />
         		<a id="pl.265.23"></a><var>265.23</var>manner of the returns and other documents pursuant to section 270C.30. This does not <br />
         		<a id="pl.265.24"></a><var>265.24</var>authorize the commissioner to require individual income taxpayers to file individual <br />
         		<a id="pl.265.25"></a><var>265.25</var>income tax returns electronically.<br />
         		<a id="pl.265.26"></a><var>265.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.27.0"></a><a id="pl.265.27"></a><var>265.27</var>&#160;&#160;&#160;&#160;Sec. 27. Minnesota Statutes 2014, section 289A.09, subdivision 1, is amended to read:<br />
         		<a id="pl.265.28"></a><var>265.28</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Returns.</b> (a) An employer who is required to deduct and withhold tax <br />
         		<a id="pl.265.29"></a><var>265.29</var>under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, and a person required to deduct and withhold <br />
         		<a id="pl.265.30"></a><var>265.30</var>tax under section 
         <statute_ref>290.923, subdivision 2</statute_ref>, must file a return with the commissioner for each <br />
         		<a id="pl.265.31"></a><var>265.31</var>quarterly period unless otherwise prescribed by the commissioner.<br />
         		<a id="pl.266.1"></a><var>266.1</var>(b) A person or corporation required to make deposits under section 
         <statute_ref>290.9201, <br />
            		<a id="pl.266.2"></a><var>266.2</var>subdivision 8
         </statute_ref>, must file an entertainer withholding tax return with the commissioner.<br />
         		<a id="pl.266.3"></a><var>266.3</var>(c) A person required to withhold an amount under section 
         <statute_ref>290.9705, subdivision 1</statute_ref>, <br />
         		<a id="pl.266.4"></a><var>266.4</var>must file a return.<br />
         		<a id="pl.266.5"></a><var>266.5</var>(d) A partnership required to deduct and withhold tax under section 
         <statute_ref>290.92, <br />
            		<a id="pl.266.6"></a><var>266.6</var>subdivision 4b
         </statute_ref>, must file a return.<br />
         		<a id="pl.266.7"></a><var>266.7</var>(e) An S corporation required to deduct and withhold tax under section 
         <statute_ref>290.92, <br />
            		<a id="pl.266.8"></a><var>266.8</var>subdivision 4c
         </statute_ref>, must also file a return.<br />
         		<a id="pl.266.9"></a><var>266.9</var>(f) Returns must be filed in the form and manner, and contain the information <br />
         		<a id="pl.266.10"></a><var>266.10</var>prescribed by the commissioner.  The commissioner shall prescribe the content, format, <br />
         		<a id="pl.266.11"></a><var>266.11</var>and manner of the returns pursuant to section 270C.30. Every return for taxes withheld <br />
         		<a id="pl.266.12"></a><var>266.12</var>must be signed by the employer, entertainment entity, contract payor, partnership, or S <br />
         		<a id="pl.266.13"></a><var>266.13</var>corporation, or a designee.<br />
         		<a id="pl.266.14"></a><var>266.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.28.0"></a><a id="pl.266.15"></a><var>266.15</var>&#160;&#160;&#160;&#160;Sec. 28. Minnesota Statutes 2014, section 289A.11, subdivision 1, is amended to read:<br />
         		<a id="pl.266.16"></a><var>266.16</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Return required.</b> (a) Except as provided in section 
         <statute_ref>289A.18, <br />
            		<a id="pl.266.17"></a><var>266.17</var>subdivision 4
         </statute_ref>, for the month in which taxes imposed by chapter 297A are payable, or for <br />
         		<a id="pl.266.18"></a><var>266.18</var>which a return is due, a return for the preceding reporting period must be filed with the <br />
         		<a id="pl.266.19"></a><var>266.19</var>commissioner in the form and manner the commissioner prescribes. The commissioner <br />
         		<a id="pl.266.20"></a><var>266.20</var>shall prescribe the content, format, and manner of the returns pursuant to section 270C.30. <br />
         		<a id="pl.266.21"></a><var>266.21</var>A person making sales at retail at two or more places of business may file a consolidated <br />
         		<a id="pl.266.22"></a><var>266.22</var>return subject to rules prescribed by the commissioner. In computing the dollar amount of <br />
         		<a id="pl.266.23"></a><var>266.23</var>items on the return, the amounts are rounded off to the nearest whole dollar, disregarding <br />
         		<a id="pl.266.24"></a><var>266.24</var>amounts less than 50 cents and increasing amounts of 50 cents to 99 cents to the next <br />
         		<a id="pl.266.25"></a><var>266.25</var>highest dollar.<br />
         		<a id="pl.266.26"></a><var>266.26</var>(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax <br />
         		<a id="pl.266.27"></a><var>266.27</var>permit under chapter 297A and who makes annual purchases, for use in a trade or business, <br />
         		<a id="pl.266.28"></a><var>266.28</var>of less than $18,500, or a person who is not required to hold a sales tax permit and who <br />
         		<a id="pl.266.29"></a><var>266.29</var>makes purchases for personal use, that are subject to the use tax imposed by section <br />
         		
         <statute_ref><a id="pl.266.30"></a><var>266.30</var>297A.63
         </statute_ref>, may file an annual use tax return on a form prescribed by the commissioner. <br />
         		<a id="pl.266.31"></a><var>266.31</var>The commissioner shall prescribe the content, format, and manner of the return pursuant <br />
         		<a id="pl.266.32"></a><var>266.32</var>to section 270C.30. If a person who qualifies for an annual use tax reporting period is <br />
         		<a id="pl.266.33"></a><var>266.33</var>required to obtain a sales tax permit or makes use tax purchases, for use in a trade or <br />
         		<a id="pl.266.34"></a><var>266.34</var>business, in excess of $18,500 during the calendar year, the reporting period must be <br />
         		<a id="pl.267.1"></a><var>267.1</var>considered ended at the end of the month in which the permit is applied for or the purchase <br />
         		<a id="pl.267.2"></a><var>267.2</var>in excess of $18,500 is made and a return must be filed for the preceding reporting period.<br />
         		<a id="pl.267.3"></a><var>267.3</var>(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the <br />
         		<a id="pl.267.4"></a><var>267.4</var>person's religious beliefs from using electronics shall be allowed to file by mail, without <br />
         		<a id="pl.267.5"></a><var>267.5</var>any additional fees. The filer must notify the commissioner of revenue of the intent to file <br />
         		<a id="pl.267.6"></a><var>267.6</var>by mail on a form prescribed by the commissioner. A return filed under this paragraph <br />
         		<a id="pl.267.7"></a><var>267.7</var>must be postmarked no later than the day the return is due in order to be considered filed <br />
         		<a id="pl.267.8"></a><var>267.8</var>on a timely basis.<br />
         		<a id="pl.267.9"></a><var>267.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.29.0"></a><a id="pl.267.10"></a><var>267.10</var>&#160;&#160;&#160;&#160;Sec. 29. Minnesota Statutes 2014, section 289A.18, subdivision 1, is amended to read:<br />
         		<a id="pl.267.11"></a><var>267.11</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Individual income, fiduciary income, corporate franchise, and </b><br />
         		<a id="pl.267.12"></a><var>267.12</var><b>entertainment taxes; partnership and S corporation returns; information returns; </b><br />
         		<a id="pl.267.13"></a><var>267.13</var><b>mining company returns.</b> The returns required to be made under sections 
         <statute_ref>289A.08</statute_ref> and <br />
         		
         <statute_ref><a id="pl.267.14"></a><var>267.14</var>289A.12
         </statute_ref> must be filed at the following times:<br />
         		<a id="pl.267.15"></a><var>267.15</var>&#160;&#160;&#160;&#160;(1) returns made on the basis of the calendar year must be filed on April 15 following <br />
         		<a id="pl.267.16"></a><var>267.16</var>the close of the calendar year, except that returns of corporations and partnerships must be <br />
         		<a id="pl.267.17"></a><var>267.17</var>filed on the due date for filing the federal income tax return;<br />
         		<a id="pl.267.18"></a><var>267.18</var>&#160;&#160;&#160;&#160;(2) returns made on the basis of the fiscal year must be filed on the 15th day of the <br />
         		<a id="pl.267.19"></a><var>267.19</var>fourth month following the close of the fiscal year, except that returns of corporations and <br />
         		<a id="pl.267.20"></a><var>267.20</var>partnerships must be filed on the due date for filing the federal income tax return;<br />
         		<a id="pl.267.21"></a><var>267.21</var>&#160;&#160;&#160;&#160;(3) returns for a fractional part of a year must be filed on the due date for filing the <br />
         		<a id="pl.267.22"></a><var>267.22</var>federal income tax return;<br />
         		<a id="pl.267.23"></a><var>267.23</var>&#160;&#160;&#160;&#160;(4) in the case of a final return of a decedent for a fractional part of a year, the return <br />
         		<a id="pl.267.24"></a><var>267.24</var>must be filed on the 15th day of the fourth month following the close of the 12-month <br />
         		<a id="pl.267.25"></a><var>267.25</var>period that began with the first day of that fractional part of a year;<br />
         		<a id="pl.267.26"></a><var>267.26</var>&#160;&#160;&#160;&#160;(5) in the case of the return of a cooperative association, returns must be filed on or <br />
         		<a id="pl.267.27"></a><var>267.27</var>before the 15th day of the ninth month following the close of the taxable year;<br />
         		<a id="pl.267.28"></a><var>267.28</var>&#160;&#160;&#160;&#160;(6) if a corporation has been divested from a unitary group and files a return for <br />
         		<a id="pl.267.29"></a><var>267.29</var>a fractional part of a year in which it was a member of a unitary business that files a <br />
         		<a id="pl.267.30"></a><var>267.30</var>combined report under section 
         <statute_ref>290.17, subdivision 4</statute_ref>, the divested corporation's return <br />
         		<a id="pl.267.31"></a><var>267.31</var>must be filed on the 15th day of the third month following the close of the common <br />
         		<a id="pl.267.32"></a><var>267.32</var>accounting period that includes the fractional year;<br />
         		<a id="pl.267.33"></a><var>267.33</var>&#160;&#160;&#160;&#160;(7) returns of entertainment entities must be filed on April 15 following the close of <br />
         		<a id="pl.267.34"></a><var>267.34</var>the calendar year;<br />
         		<a id="pl.268.1"></a><var>268.1</var>&#160;&#160;&#160;&#160;(8) returns required to be filed under section 
         <statute_ref>289A.08, subdivision 4</statute_ref>, must be filed <br />
         		<a id="pl.268.2"></a><var>268.2</var>on the 15th day of the fifth month following the close of the taxable year;<br />
         		<a id="pl.268.3"></a><var>268.3</var>&#160;&#160;&#160;&#160;(9) returns of mining companies must be filed on May 1 following the close of the <br />
         		<a id="pl.268.4"></a><var>268.4</var>calendar year; and<br />
         		<a id="pl.268.5"></a><var>268.5</var>&#160;&#160;&#160;&#160;(10) returns required to be filed with the commissioner under section 
         <statute_ref>289A.12, <br />
            		<a id="pl.268.6"></a><var>268.6</var>subdivision 2
         </statute_ref>, 4 to 10, or 16 must be filed within 30 days after being demanded by the <br />
         		<a id="pl.268.7"></a><var>268.7</var>commissioner.<br />
         		<a id="pl.268.8"></a><var>268.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.30.0"></a><a id="pl.268.9"></a><var>268.9</var>&#160;&#160;&#160;&#160;Sec. 30. Minnesota Statutes 2014, section 289A.37, subdivision 2, is amended to read:<br />
         		<a id="pl.268.10"></a><var>268.10</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Erroneous refunds.</b> An erroneous refund is considered an underpayment <br />
         		<a id="pl.268.11"></a><var>268.11</var>of tax on the date made. An assessment of a deficiency arising out of an erroneous refund <br />
         		<a id="pl.268.12"></a><var>268.12</var>may be made at any time within two years from the making of the refund. If part of the <br />
         		<a id="pl.268.13"></a><var>268.13</var>refund was induced by fraud or misrepresentation of a material fact, the assessment may <br />
         		<a id="pl.268.14"></a><var>268.14</var>be made at any time. (a) Except as provided in paragraph (b), an erroneous refund occurs <br />
         		<a id="pl.268.15"></a><var>268.15</var>when the commissioner issues a payment to a person that exceeds the amount the person <br />
         		<a id="pl.268.16"></a><var>268.16</var>is entitled to receive under law. An erroneous refund is considered an underpayment <br />
         		<a id="pl.268.17"></a><var>268.17</var>of tax on the date issued.<br />
         		<a id="pl.268.18"></a><var>268.18</var>(b) To the extent that the amount paid does not exceed the amount claimed by the <br />
         		<a id="pl.268.19"></a><var>268.19</var>taxpayer, an erroneous refund does not include the following:<br />
         		<a id="pl.268.20"></a><var>268.20</var>(1) any amount of a refund or credit paid pursuant to a claim for refund filed by <br />
         		<a id="pl.268.21"></a><var>268.21</var>a taxpayer, including but not limited to refunds of claims made under section 290.06, <br />
         		<a id="pl.268.22"></a><var>268.22</var>subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; <br />
         		<a id="pl.268.23"></a><var>268.23</var>290.0681; or 290.0692; or chapter 290A; or<br />
         		<a id="pl.268.24"></a><var>268.24</var>(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed <br />
         		<a id="pl.268.25"></a><var>268.25</var>by a taxpayer.<br />
         		<a id="pl.268.26"></a><var>268.26</var>(c) The commissioner may make an assessment to recover an erroneous refund at <br />
         		<a id="pl.268.27"></a><var>268.27</var>any time within two years from the issuance of the erroneous refund. If all or part of <br />
         		<a id="pl.268.28"></a><var>268.28</var>the erroneous refund was induced by fraud or misrepresentation of a material fact, the <br />
         		<a id="pl.268.29"></a><var>268.29</var>assessment may be made at any time.<br />
         		<a id="pl.268.30"></a><var>268.30</var>(d) Assessments of amounts that are not erroneous refunds under paragraph (b) <br />
         		<a id="pl.268.31"></a><var>268.31</var>must be conducted under section 289A.38.<br />
         		<a id="pl.268.32"></a><var>268.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment and <br />
         		<a id="pl.268.33"></a><var>268.33</var>applies retroactively to all refunds issued on, before, or after that date, but does not apply to <br />
         		<a id="pl.268.34"></a><var>268.34</var>the refunds at issue in Connexus Energy et al. v. Commissioner of Revenue, 868 N.W.2d <br />
         		<a id="pl.269.1"></a><var>269.1</var>234 (Minn. 2015). Notwithstanding any law to the contrary, the changes in this section do <br />
         		<a id="pl.269.2"></a><var>269.2</var>not invalidate any assessments made by the commissioner prior to this effective date.<br />
         		<br />
         		<a id="bill.15.31.0"></a><a id="pl.269.3"></a><var>269.3</var>&#160;&#160;&#160;&#160;Sec. 31. Minnesota Statutes 2014, section 289A.50, subdivision 7, is amended to read:<br />
         		<a id="pl.269.4"></a><var>269.4</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Remedies.</b> (a) If the taxpayer is notified by the commissioner that the <br />
         		<a id="pl.269.5"></a><var>269.5</var>refund claim is denied in whole or in part, the taxpayer may:<br />
         		<a id="pl.269.6"></a><var>269.6</var>(1) file an administrative appeal as provided in section 
         <statute_ref>270C.35</statute_ref>, or an appeal <br />
         		<a id="pl.269.7"></a><var>269.7</var>with the Tax Court, within 60 days after issuance the notice date of the commissioner's <br />
         		<a id="pl.269.8"></a><var>269.8</var>notice of denial; or<br />
         		<a id="pl.269.9"></a><var>269.9</var>(2) file an action in the district court to recover the refund.<br />
         		<a id="pl.269.10"></a><var>269.10</var>(b) An action in the district court on a denied claim for refund must be brought <br />
         		<a id="pl.269.11"></a><var>269.11</var>within 18 months of the notice date of the denial of the claim by the commissioner. For <br />
         		<a id="pl.269.12"></a><var>269.12</var>the purposes of this section, "notice date" is defined in section 270C.35, subdivision 3.<br />
         		<a id="pl.269.13"></a><var>269.13</var>(c) No action in the district court or the Tax Court shall be brought within six months <br />
         		<a id="pl.269.14"></a><var>269.14</var>of the filing of the refund claim unless the commissioner denies the claim within that period.<br />
         		<a id="pl.269.15"></a><var>269.15</var>(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial <br />
         		<a id="pl.269.16"></a><var>269.16</var>of the claim, the taxpayer may bring an action in the district court or the Tax Court at any <br />
         		<a id="pl.269.17"></a><var>269.17</var>time after the expiration of six months from the time the claim was filed.<br />
         		<a id="pl.269.18"></a><var>269.18</var>(e) The commissioner and the taxpayer may agree to extend the period for bringing <br />
         		<a id="pl.269.19"></a><var>269.19</var>an action in the district court.<br />
         		<a id="pl.269.20"></a><var>269.20</var>(f) An action for refund of tax by the taxpayer must be brought in the district court <br />
         		<a id="pl.269.21"></a><var>269.21</var>of the district in which lies the county of the taxpayer's residence or principal place of <br />
         		<a id="pl.269.22"></a><var>269.22</var>business. In the case of an estate or trust, the action must be brought at the principal place <br />
         		<a id="pl.269.23"></a><var>269.23</var>of its administration. Any action may be brought in the district court for Ramsey County.<br />
         		<a id="pl.269.24"></a><var>269.24</var><b>EFFECTIVE DATE.</b>This section is effective for claims for refund denied after <br />
         		<a id="pl.269.25"></a><var>269.25</var>December 31, 2016.<br />
         		<br />
         		<a id="bill.15.32.0"></a><a id="pl.269.26"></a><var>269.26</var>&#160;&#160;&#160;&#160;Sec. 32. <b>[290B.11] FORMS. </b><br />
         		<a id="pl.269.27"></a><var>269.27</var>The commissioner shall prescribe the content, format, and manner of all forms and <br />
         		<a id="pl.269.28"></a><var>269.28</var>other documents required to be filed under this chapter pursuant to section 270C.30.<br />
         		<a id="pl.269.29"></a><var>269.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.33.0"></a><a id="pl.269.30"></a><var>269.30</var>&#160;&#160;&#160;&#160;Sec. 33. <b>[290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.</b><br />
         		<a id="pl.270.1"></a><var>270.1</var>On request of the commissioner, the commissioner of natural resources must <br />
         		<a id="pl.270.2"></a><var>270.2</var>annually provide verification that the claimant has a current forest management plan on <br />
         		<a id="pl.270.3"></a><var>270.3</var>file with the Department of Natural Resources.<br />
         		<a id="pl.270.4"></a><var>270.4</var><b>EFFECTIVE DATE.</b>This section is effective for certifications filed after July <br />
         		<a id="pl.270.5"></a><var>270.5</var>1, 2017.<br />
         		<br />
         		<a id="bill.15.34.0"></a><a id="pl.270.6"></a><var>270.6</var>&#160;&#160;&#160;&#160;Sec. 34. <b>[293.15] FORMS. </b><br />
         		<a id="pl.270.7"></a><var>270.7</var>The commissioner shall prescribe the content, format, and manner of all forms and <br />
         		<a id="pl.270.8"></a><var>270.8</var>other documents required to be filed under this chapter pursuant to section 270C.30.<br />
         		<a id="pl.270.9"></a><var>270.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.35.0"></a><a id="pl.270.10"></a><var>270.10</var>&#160;&#160;&#160;&#160;Sec. 35. Minnesota Statutes 2014, section 295.55, subdivision 6, is amended to read:<br />
         		<a id="pl.270.11"></a><var>270.11</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Form of returns.</b> The estimated payments and annual return must contain <br />
         		<a id="pl.270.12"></a><var>270.12</var>the information and be in the form prescribed by the commissioner. The commissioner <br />
         		<a id="pl.270.13"></a><var>270.13</var>shall prescribe the content, format, and manner of the estimated payment forms and annual <br />
         		<a id="pl.270.14"></a><var>270.14</var>return pursuant to section 270C.30.<br />
         		<a id="pl.270.15"></a><var>270.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.36.0"></a><a id="pl.270.16"></a><var>270.16</var>&#160;&#160;&#160;&#160;Sec. 36. Minnesota Statutes 2014, section 296A.02, is amended by adding a <br />
         		<a id="pl.270.17"></a><var>270.17</var>subdivision to read:<br />
         		<a id="pl.270.18"></a><var>270.18</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Forms.</b>  The commissioner shall prescribe the content, format, and manner <br />
         		<a id="pl.270.19"></a><var>270.19</var>of all forms and other documents required to be filed under this chapter pursuant to section <br />
         		<a id="pl.270.20"></a><var>270.20</var>270C.30.<br />
         		<a id="pl.270.21"></a><var>270.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.37.0"></a><a id="pl.270.22"></a><var>270.22</var>&#160;&#160;&#160;&#160;Sec. 37. Minnesota Statutes 2014, section 296A.22, subdivision 9, is amended to read:<br />
         		<a id="pl.270.23"></a><var>270.23</var>&#160;&#160;&#160;&#160;Subd. 9. <b>Abatement of penalty.</b> (a) The commissioner may by written order <br />
         		<a id="pl.270.24"></a><var>270.24</var>abate any penalty imposed under this section, if in the commissioner's opinion there is <br />
         		<a id="pl.270.25"></a><var>270.25</var>reasonable cause to do so.<br />
         		<a id="pl.270.26"></a><var>270.26</var>(b) A request for abatement of penalty must be filed with the commissioner within <br />
         		<a id="pl.270.27"></a><var>270.27</var>60 days of the notice date of the notice stating that a penalty has been imposed was mailed <br />
         		<a id="pl.270.28"></a><var>270.28</var>to the taxpayer's last known address. For purposes of this section, the term "notice date" <br />
         		<a id="pl.270.29"></a><var>270.29</var>means the notice date designated by the commissioner on the order or other notice that a <br />
         		<a id="pl.270.30"></a><var>270.30</var>penalty has been imposed.<br />
         		<a id="pl.271.1"></a><var>271.1</var>(c) If the commissioner issues an order denying a request for abatement of penalty, <br />
         		<a id="pl.271.2"></a><var>271.2</var>the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to <br />
         		<a id="pl.271.3"></a><var>271.3</var>Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>. If the commissioner does not issue an order on <br />
         		<a id="pl.271.4"></a><var>271.4</var>the abatement request within 60 days from the date the request is received, the taxpayer <br />
         		<a id="pl.271.5"></a><var>271.5</var>may appeal to Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>.<br />
         		<a id="pl.271.6"></a><var>271.6</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br />
         		<a id="pl.271.7"></a><var>271.7</var>December 31, 2016.<br />
         		<br />
         		<a id="bill.15.38.0"></a><a id="pl.271.8"></a><var>271.8</var>&#160;&#160;&#160;&#160;Sec. 38. Minnesota Statutes 2014, section 296A.26, is amended to read:<br />
         		<a id="pl.271.9"></a><var>271.9</var><b>296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.</b><br />
         		<a id="pl.271.10"></a><var>271.10</var>In lieu of an administrative appeal under section 
         <statute_ref>270C.35</statute_ref>, any person aggrieved by <br />
         		<a id="pl.271.11"></a><var>271.11</var>an order of the commissioner fixing a tax, penalty, or interest under this chapter may, within <br />
         		<a id="pl.271.12"></a><var>271.12</var>60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner <br />
         		<a id="pl.271.13"></a><var>271.13</var>provided under section 
         <statute_ref>271.06</statute_ref>. For purposes of this section, the term "notice date" means <br />
         		<a id="pl.271.14"></a><var>271.14</var>the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.<br />
         		<a id="pl.271.15"></a><var>271.15</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December <br />
         		<a id="pl.271.16"></a><var>271.16</var>31, 2016.<br />
         		<br />
         		<a id="bill.15.39.0"></a><a id="pl.271.17"></a><var>271.17</var>&#160;&#160;&#160;&#160;Sec. 39. Minnesota Statutes 2014, section 297D.02, is amended to read:<br />
         		<a id="pl.271.18"></a><var>271.18</var><b>297D.02 ADMINISTRATION.</b><br />
         		<a id="pl.271.19"></a><var>271.19</var>The commissioner of revenue shall administer this chapter. The commissioner shall <br />
         		<a id="pl.271.20"></a><var>271.20</var>prescribe the content, format, and manner of all forms and other documents required to be <br />
         		<a id="pl.271.21"></a><var>271.21</var>filed under this chapter pursuant to section 270C.30. Payments required by this chapter <br />
         		<a id="pl.271.22"></a><var>271.22</var>must be made to the commissioner on the form provided by the commissioner. Tax obligors <br />
         		<a id="pl.271.23"></a><var>271.23</var>are not required to give their name, address, Social Security number, or other identifying <br />
         		<a id="pl.271.24"></a><var>271.24</var>information on the form. The commissioner shall collect all taxes under this chapter.<br />
         		<a id="pl.271.25"></a><var>271.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.40.0"></a><a id="pl.271.26"></a><var>271.26</var>&#160;&#160;&#160;&#160;Sec. 40. Minnesota Statutes 2014, section 297E.02, subdivision 3, is amended to read:<br />
         		<a id="pl.271.27"></a><var>271.27</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Collection; disposition.</b> (a) Taxes imposed by this section are due <br />
         		<a id="pl.271.28"></a><var>271.28</var>and payable to the commissioner when the gambling tax return is required to be filed. <br />
         		<a id="pl.271.29"></a><var>271.29</var>Distributors must file their monthly sales figures with the commissioner on a form <br />
         		<a id="pl.271.30"></a><var>271.30</var>prescribed by the commissioner. Returns covering the taxes imposed under this section <br />
         		<a id="pl.271.31"></a><var>271.31</var>must be filed with the commissioner on or before the 20th day of the month following the <br />
         		<a id="pl.272.1"></a><var>272.1</var>close of the previous calendar month. The commissioner may require that the returns be <br />
         		<a id="pl.272.2"></a><var>272.2</var>filed via magnetic media or electronic data transfer. The commissioner shall prescribe the <br />
         		<a id="pl.272.3"></a><var>272.3</var>content, format, and manner of returns or other documents pursuant to section 270C.30. <br />
         		<a id="pl.272.4"></a><var>272.4</var>The proceeds, along with the revenue received from all license fees and other fees under <br />
         		<a id="pl.272.5"></a><var>272.5</var>sections 
         <statute_ref>349.11</statute_ref> to 
         <statute_ref>349.191</statute_ref>, 
         <statute_ref>349.211</statute_ref>, and 
         <statute_ref>349.213</statute_ref>, must be paid to the commissioner of <br />
         		<a id="pl.272.6"></a><var>272.6</var>management and budget for deposit in the general fund.<br />
         		<a id="pl.272.7"></a><var>272.7</var>(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by <br />
         		<a id="pl.272.8"></a><var>272.8</var>the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards <br />
         		<a id="pl.272.9"></a><var>272.9</var>by the organization is exempt from taxes imposed by chapter 297A and is exempt from all <br />
         		<a id="pl.272.10"></a><var>272.10</var>local taxes and license fees except a fee authorized under section 
         <statute_ref>349.16, subdivision 8</statute_ref>.<br />
         		<a id="pl.272.11"></a><var>272.11</var>(c) One-half of one percent of the revenue deposited in the general fund under <br />
         		<a id="pl.272.12"></a><var>272.12</var>paragraph (a), is appropriated to the commissioner of human services for the compulsive <br />
         		<a id="pl.272.13"></a><var>272.13</var>gambling treatment program established under section 
         <statute_ref>245.98</statute_ref>. One-half of one percent <br />
         		<a id="pl.272.14"></a><var>272.14</var>of the revenue deposited in the general fund under paragraph (a), is appropriated to <br />
         		<a id="pl.272.15"></a><var>272.15</var>the commissioner of human services for a grant to the state affiliate recognized by <br />
         		<a id="pl.272.16"></a><var>272.16</var>the National Council on Problem Gambling to increase public awareness of problem <br />
         		<a id="pl.272.17"></a><var>272.17</var>gambling, education and training for individuals and organizations providing effective <br />
         		<a id="pl.272.18"></a><var>272.18</var>treatment services to problem gamblers and their families, and research relating to <br />
         		<a id="pl.272.19"></a><var>272.19</var>problem gambling. Money appropriated by this paragraph must supplement and must not <br />
         		<a id="pl.272.20"></a><var>272.20</var>replace existing state funding for these programs.<br />
         		<a id="pl.272.21"></a><var>272.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.41.0"></a><a id="pl.272.22"></a><var>272.22</var>&#160;&#160;&#160;&#160;Sec. 41. Minnesota Statutes 2014, section 297E.04, subdivision 1, is amended to read:<br />
         		<a id="pl.272.23"></a><var>272.23</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Reports of sales.</b> A manufacturer who sells gambling product for <br />
         		<a id="pl.272.24"></a><var>272.24</var>use or resale in this state, or for receipt by a person or entity in this state, shall file with the <br />
         		<a id="pl.272.25"></a><var>272.25</var>commissioner, on a form prescribed by the commissioner, a report of gambling product <br />
         		<a id="pl.272.26"></a><var>272.26</var>sold to any person in the state, including the established governing body of an Indian tribe <br />
         		<a id="pl.272.27"></a><var>272.27</var>recognized by the United States Department of the Interior. The report must be filed <br />
         		<a id="pl.272.28"></a><var>272.28</var>monthly on or before the 20th day of the month succeeding the month in which the sale <br />
         		<a id="pl.272.29"></a><var>272.29</var>was made. The commissioner may require that the report be submitted via magnetic <br />
         		<a id="pl.272.30"></a><var>272.30</var>media or electronic data transfer. The commissioner shall prescribe the content, format, <br />
         		<a id="pl.272.31"></a><var>272.31</var>and manner of returns or other documents pursuant to section 270C.30. The commissioner <br />
         		<a id="pl.272.32"></a><var>272.32</var>may inspect the premises, books, records, and inventory of a manufacturer without notice <br />
         		<a id="pl.272.33"></a><var>272.33</var>during the normal business hours of the manufacturer. A person violating this section is <br />
         		<a id="pl.272.34"></a><var>272.34</var>guilty of a misdemeanor.<br />
         		<a id="pl.273.1"></a><var>273.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.42.0"></a><a id="pl.273.2"></a><var>273.2</var>&#160;&#160;&#160;&#160;Sec. 42. Minnesota Statutes 2014, section 297E.05, subdivision 4, is amended to read:<br />
         		<a id="pl.273.3"></a><var>273.3</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Reports.</b> A distributor shall report monthly to the commissioner, on a form <br />
         		<a id="pl.273.4"></a><var>273.4</var>the commissioner prescribes, its sales of each type of gambling product. This report must <br />
         		<a id="pl.273.5"></a><var>273.5</var>be filed monthly on or before the 20th day of the month succeeding the month in which <br />
         		<a id="pl.273.6"></a><var>273.6</var>the sale was made. The commissioner may require that a distributor submit the monthly <br />
         		<a id="pl.273.7"></a><var>273.7</var>report and invoices required in this subdivision via magnetic media or electronic data <br />
         		<a id="pl.273.8"></a><var>273.8</var>transfer. The commissioner shall prescribe the content, format, and manner of returns or <br />
         		<a id="pl.273.9"></a><var>273.9</var>other documents pursuant to section 270C.30.<br />
         		<a id="pl.273.10"></a><var>273.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.43.0"></a><a id="pl.273.11"></a><var>273.11</var>&#160;&#160;&#160;&#160;Sec. 43. Minnesota Statutes 2014, section 297E.06, subdivision 1, is amended to read:<br />
         		<a id="pl.273.12"></a><var>273.12</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Reports.</b> An organization must file with the commissioner, on a form <br />
         		<a id="pl.273.13"></a><var>273.13</var>prescribed by the commissioner, a report showing all gambling activity conducted by that <br />
         		<a id="pl.273.14"></a><var>273.14</var>organization for each month. Gambling activity includes all gross receipts, prizes, all <br />
         		<a id="pl.273.15"></a><var>273.15</var>gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful <br />
         		<a id="pl.273.16"></a><var>273.16</var>purpose and board-approved expenditures. The report must be filed with the commissioner <br />
         		<a id="pl.273.17"></a><var>273.17</var>on or before the 20th day of the month following the month in which the gambling activity <br />
         		<a id="pl.273.18"></a><var>273.18</var>takes place. The commissioner may require that the reports be filed via magnetic media or <br />
         		<a id="pl.273.19"></a><var>273.19</var>electronic data transfer. The commissioner shall prescribe the content, format, and manner <br />
         		<a id="pl.273.20"></a><var>273.20</var>of returns or other documents pursuant to section 270C.30.<br />
         		<a id="pl.273.21"></a><var>273.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.44.0"></a><a id="pl.273.22"></a><var>273.22</var>&#160;&#160;&#160;&#160;Sec. 44. Minnesota Statutes 2014, section 297F.09, subdivision 1, is amended to read:<br />
         		<a id="pl.273.23"></a><var>273.23</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Monthly return; cigarette distributor.</b> On or before the 18th day <br />
         		<a id="pl.273.24"></a><var>273.24</var>of each calendar month, a distributor with a place of business in this state shall file a <br />
         		<a id="pl.273.25"></a><var>273.25</var>return with the commissioner showing the quantity of cigarettes manufactured or brought <br />
         		<a id="pl.273.26"></a><var>273.26</var>in from outside the state or purchased during the preceding calendar month and the <br />
         		<a id="pl.273.27"></a><var>273.27</var>quantity of cigarettes sold or otherwise disposed of in this state and outside this state <br />
         		<a id="pl.273.28"></a><var>273.28</var>during that month. A licensed distributor outside this state shall in like manner file a <br />
         		<a id="pl.273.29"></a><var>273.29</var>return showing the quantity of cigarettes shipped or transported into this state during the <br />
         		<a id="pl.273.30"></a><var>273.30</var>preceding calendar month. Returns must be made in the form and manner prescribed by <br />
         		<a id="pl.273.31"></a><var>273.31</var>The commissioner  shall prescribe the content, format, and manner of returns pursuant to <br />
         		<a id="pl.273.32"></a><var>273.32</var>section 270C.30, and the returns must contain any other information required by the <br />
         		<a id="pl.274.1"></a><var>274.1</var>commissioner. The return must be accompanied by a remittance for the full unpaid tax <br />
         		<a id="pl.274.2"></a><var>274.2</var>liability shown by it. For distributors subject to the accelerated tax payment requirements <br />
         		<a id="pl.274.3"></a><var>274.3</var>in subdivision 10, the return for the May liability is due two business days before June 30th <br />
         		<a id="pl.274.4"></a><var>274.4</var>of the year and the return for the June liability is due on or before August 18th of the year.<br />
         		<a id="pl.274.5"></a><var>274.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.45.0"></a><a id="pl.274.6"></a><var>274.6</var>&#160;&#160;&#160;&#160;Sec. 45. Minnesota Statutes 2014, section 297F.23, is amended to read:<br />
         		<a id="pl.274.7"></a><var>274.7</var><b>297F.23 JUDICIAL REVIEW.</b><br />
         		<a id="pl.274.8"></a><var>274.8</var>In lieu of an administrative appeal under section 
         <statute_ref>270C.35</statute_ref>, a person aggrieved by an <br />
         		<a id="pl.274.9"></a><var>274.9</var>order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 <br />
         		<a id="pl.274.10"></a><var>274.10</var>days from the notice date of the notice of the order, appeal to the Tax Court in the manner <br />
         		<a id="pl.274.11"></a><var>274.11</var>provided under section 
         <statute_ref>271.06</statute_ref>. For purposes of this section, the term "notice date" means <br />
         		<a id="pl.274.12"></a><var>274.12</var>the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.<br />
         		<a id="pl.274.13"></a><var>274.13</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December <br />
         		<a id="pl.274.14"></a><var>274.14</var>31, 2016.<br />
         		<br />
         		<a id="bill.15.46.0"></a><a id="pl.274.15"></a><var>274.15</var>&#160;&#160;&#160;&#160;Sec. 46. Minnesota Statutes 2014, section 297G.09, subdivision 1, is amended to read:<br />
         		<a id="pl.274.16"></a><var>274.16</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Monthly returns; manufacturers, wholesalers, brewers, or </b><br />
         		<a id="pl.274.17"></a><var>274.17</var><b>importers.</b> On or before the 18th day of each calendar month following the month in <br />
         		<a id="pl.274.18"></a><var>274.18</var>which a licensed manufacturer or wholesaler first sells wine and distilled spirits within <br />
         		<a id="pl.274.19"></a><var>274.19</var>the state, or a brewer or importer first sells or imports fermented malt beverages, or a <br />
         		<a id="pl.274.20"></a><var>274.20</var>wholesaler knowingly acquires title to or possession of untaxed fermented malt beverages, <br />
         		<a id="pl.274.21"></a><var>274.21</var>the licensed manufacturer, wholesaler, brewer, or importer liable for the excise tax must <br />
         		<a id="pl.274.22"></a><var>274.22</var>file a return with the commissioner, and in addition must keep records and render reports <br />
         		<a id="pl.274.23"></a><var>274.23</var>as required by the commissioner. Returns must be made in a form and manner prescribed <br />
         		<a id="pl.274.24"></a><var>274.24</var>by the commissioner, and  The commissioner shall prescribe the content, format, and <br />
         		<a id="pl.274.25"></a><var>274.25</var>manner of returns pursuant to section 270C.30. The returns must contain any other <br />
         		<a id="pl.274.26"></a><var>274.26</var>information required by the commissioner. Returns must be accompanied by a remittance <br />
         		<a id="pl.274.27"></a><var>274.27</var>for the full unpaid tax liability. Returns must be filed regardless of whether a tax is due.<br />
         		<a id="pl.274.28"></a><var>274.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.47.0"></a><a id="pl.274.29"></a><var>274.29</var>&#160;&#160;&#160;&#160;Sec. 47. Minnesota Statutes 2014, section 297G.22, is amended to read:<br />
         		<a id="pl.274.30"></a><var>274.30</var><b>297G.22 JUDICIAL REVIEW.</b><br />
         		<a id="pl.275.1"></a><var>275.1</var>In lieu of an administrative appeal under this chapter, a person aggrieved by an order <br />
         		<a id="pl.275.2"></a><var>275.2</var>of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days <br />
         		<a id="pl.275.3"></a><var>275.3</var>from the date of the notice date of the order, appeal to the Tax Court in the manner provided <br />
         		<a id="pl.275.4"></a><var>275.4</var>under section 
         <statute_ref>271.06</statute_ref>. For purposes of this section, the term "notice date" means the notice <br />
         		<a id="pl.275.5"></a><var>275.5</var>date designated by the commissioner on the order fixing a tax, penalty, or interest.<br />
         		<a id="pl.275.6"></a><var>275.6</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December <br />
         		<a id="pl.275.7"></a><var>275.7</var>31, 2016.<br />
         		<br />
         		<a id="bill.15.48.0"></a><a id="pl.275.8"></a><var>275.8</var>&#160;&#160;&#160;&#160;Sec. 48. Minnesota Statutes 2014, section 297I.30, is amended by adding a subdivision <br />
         		<a id="pl.275.9"></a><var>275.9</var>to read:<br />
         		<a id="pl.275.10"></a><var>275.10</var>&#160;&#160;&#160;&#160;Subd. 11. <b>Format.</b>  The commissioner shall prescribe the content, format, and <br />
         		<a id="pl.275.11"></a><var>275.11</var>manner of returns or other documents pursuant to section 270C.30.<br />
         		<a id="pl.275.12"></a><var>275.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.15.49.0"></a><a id="pl.275.13"></a><var>275.13</var>&#160;&#160;&#160;&#160;Sec. 49. Minnesota Statutes 2014, section 297I.60, subdivision 2, is amended to read:<br />
         		<a id="pl.275.14"></a><var>275.14</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Remedies.</b> (a) If the taxpayer is notified that the refund claim is denied in <br />
         		<a id="pl.275.15"></a><var>275.15</var>whole or in part, the taxpayer may contest the denial by:<br />
         		<a id="pl.275.16"></a><var>275.16</var>(1) filing an administrative appeal with the commissioner under section 
         <statute_ref>270C.35</statute_ref>;<br />
         		<a id="pl.275.17"></a><var>275.17</var>(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of <br />
         		<a id="pl.275.18"></a><var>275.18</var>denial; or<br />
         		<a id="pl.275.19"></a><var>275.19</var>(3) filing an action in the district court to recover the refund.<br />
         		<a id="pl.275.20"></a><var>275.20</var>(b) An action in the district court must be brought within 18 months following of the <br />
         		<a id="pl.275.21"></a><var>275.21</var>notice date of the notice of denial. For purposes of this section, "notice date" is defined in <br />
         		<a id="pl.275.22"></a><var>275.22</var>section 270C.35, subdivision 3. An action for refund of tax or surcharge must be brought <br />
         		<a id="pl.275.23"></a><var>275.23</var>in the district court of the district in which lies the taxpayer's principal place of business or <br />
         		<a id="pl.275.24"></a><var>275.24</var>in the District Court for Ramsey County. If a taxpayer files a claim for refund and the <br />
         		<a id="pl.275.25"></a><var>275.25</var>commissioner has not issued a denial of the claim, the taxpayer may bring an action in <br />
         		<a id="pl.275.26"></a><var>275.26</var>the district court or the Tax Court at any time after the expiration of six months from the <br />
         		<a id="pl.275.27"></a><var>275.27</var>time the claim was filed.<br />
         		<a id="pl.275.28"></a><var>275.28</var><b>EFFECTIVE DATE.</b>This section is effective for claims for refund denied after <br />
         		<a id="pl.275.29"></a><var>275.29</var>December 31, 2016.<br />
         		<br />
         		<a id="bill.15.50.0"></a><a id="pl.275.30"></a><var>275.30</var>&#160;&#160;&#160;&#160;Sec. 50. Minnesota Statutes 2014, section 469.319, subdivision 5, is amended to read:<br />
         		<a id="pl.275.31"></a><var>275.31</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Waiver authority.</b> (a) The commissioner may waive all or part of a <br />
         		<a id="pl.275.32"></a><var>275.32</var>repayment required under subdivision 1, if the commissioner, in consultation with <br />
         		<a id="pl.276.1"></a><var>276.1</var>the commissioner of employment and economic development and appropriate officials <br />
         		<a id="pl.276.2"></a><var>276.2</var>from the local government units in which the qualified business is located, determines <br />
         		<a id="pl.276.3"></a><var>276.3</var>that requiring repayment of the tax is not in the best interest of the state or the local <br />
         		<a id="pl.276.4"></a><var>276.4</var>government units and the business ceased operating as a result of circumstances beyond <br />
         		<a id="pl.276.5"></a><var>276.5</var>its control including, but not limited to:<br />
         		<a id="pl.276.6"></a><var>276.6</var>&#160;&#160;&#160;&#160;(1) a natural disaster;<br />
         		<a id="pl.276.7"></a><var>276.7</var>&#160;&#160;&#160;&#160;(2) unforeseen industry trends; or<br />
         		<a id="pl.276.8"></a><var>276.8</var>&#160;&#160;&#160;&#160;(3) loss of a major supplier or customer.<br />
         		<a id="pl.276.9"></a><var>276.9</var>&#160;&#160;&#160;&#160;(b)(1) The commissioner shall waive repayment required under subdivision 1a if <br />
         		<a id="pl.276.10"></a><var>276.10</var>the commissioner has waived repayment by the operating business under subdivision 1, <br />
         		<a id="pl.276.11"></a><var>276.11</var>unless the person that received benefits without having to operate a business in the zone <br />
         		<a id="pl.276.12"></a><var>276.12</var>was a contributing factor in the qualified business becoming subject to repayment under <br />
         		<a id="pl.276.13"></a><var>276.13</var>subdivision 1;<br />
         		<a id="pl.276.14"></a><var>276.14</var>&#160;&#160;&#160;&#160;(2) the commissioner shall waive the repayment required under subdivision 1a, even <br />
         		<a id="pl.276.15"></a><var>276.15</var>if the repayment has not been waived for the operating business if:<br />
         		<a id="pl.276.16"></a><var>276.16</var>&#160;&#160;&#160;&#160;(i) the person that received benefits without having to operate a business in the zone <br />
         		<a id="pl.276.17"></a><var>276.17</var>and the business that operated in the zone are not related parties as defined in section <br />
         		<a id="pl.276.18"></a><var>276.18</var>267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and<br />
         		<a id="pl.276.19"></a><var>276.19</var>&#160;&#160;&#160;&#160;(ii) actions of the person were not a contributing factor in the qualified business <br />
         		<a id="pl.276.20"></a><var>276.20</var>becoming subject to repayment under subdivision 1.<br />
         		<a id="pl.276.21"></a><var>276.21</var>(c) Requests for waiver must be made no later than 60 days after the earlier of the <br />
         		<a id="pl.276.22"></a><var>276.22</var>notice date of an order issued under subdivision 4, paragraph (d), or the date of a tax <br />
         		<a id="pl.276.23"></a><var>276.23</var>statement issued under subdivision 4, paragraph (c). For purposes of this section, the term <br />
         		<a id="pl.276.24"></a><var>276.24</var>"notice date" means the notice date designated by the commissioner on the order.<br />
         		<a id="pl.276.25"></a><var>276.25</var><b>EFFECTIVE DATE.</b>This section is effective for orders of the commissioner of <br />
         		<a id="pl.276.26"></a><var>276.26</var>revenue dated after December 31, 2016.<br />
         		<br />
         		<a id="bill.15.51.0"></a><a id="pl.276.27"></a><var>276.27</var>&#160;&#160;&#160;&#160;Sec. 51. <b> REPEALER.</b><br />
         		<a id="pl.276.28"></a><var>276.28</var>Minnesota Statutes 2014, section 290C.06, is repealed.<br />
         		<a id="pl.276.29"></a><var>276.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		"<a id="pl.276.30"></a><var>276.30</var>Delete the title and insert:<br />
         		
         <div class="xtend_ce"><a id="pl.276.31"></a><var>276.31</var>"A bill for an act<br />
            		
         </div><a id="pl.276.32"></a><var>276.32</var>relating to financing of state and local government; making changes to property, <br />
         		<a id="pl.276.33"></a><var>276.33</var>individual income, corporate franchise, estate, sales and use, excise, petroleum <br />
         		<a id="pl.276.34"></a><var>276.34</var>and other fuel, gambling, tobacco, special, mineral, local, and other taxes and <br />
         		<a id="pl.276.35"></a><var>276.35</var>tax-related provisions; modifying local government aids and credits; amending <br />
         		<a id="pl.276.36"></a><var>276.36</var>county levy authority; exempting certain electric generation facility property and <br />
         		<a id="pl.277.1"></a><var>277.1</var>soccer stadium property from property tax; extending homestead value exclusion <br />
         		<a id="pl.277.2"></a><var>277.2</var>for spouses of qualifying deceased veterans; amending the state general levy; <br />
         		<a id="pl.277.3"></a><var>277.3</var>abating local property taxes in the Lake Mille Lacs area; establishing school <br />
         		<a id="pl.277.4"></a><var>277.4</var>building bond agricultural credit; establishing reimbursement for certain <br />
         		<a id="pl.277.5"></a><var>277.5</var>out-of-home placements of Indian children; establishing riparian protection <br />
         		<a id="pl.277.6"></a><var>277.6</var>aid; forgiving certain aid penalties; providing for federal tax conformity; <br />
         		<a id="pl.277.7"></a><var>277.7</var>modifying income tax credits; providing income tax credits; changing income <br />
         		<a id="pl.277.8"></a><var>277.8</var>tax modifications; modifying residency rules; modifying sales and use tax <br />
         		<a id="pl.277.9"></a><var>277.9</var>definitions; modifying sales and use tax collection requirements; modifying sales <br />
         		<a id="pl.277.10"></a><var>277.10</var>and use tax exemptions; providing for reimbursement from the Minnesota Sports <br />
         		<a id="pl.277.11"></a><var>277.11</var>Facilities Authority of certain sales and use taxes; allocating certain sales and use <br />
         		<a id="pl.277.12"></a><var>277.12</var>tax revenues; modifying and allowing certain local sales and use taxes; modifying <br />
         		<a id="pl.277.13"></a><var>277.13</var>provisions for gasoline used as a substitute for aviation gasoline; providing <br />
         		<a id="pl.277.14"></a><var>277.14</var>tax rates on paper pull-tabs sold at bingo halls; providing definitions and a <br />
         		<a id="pl.277.15"></a><var>277.15</var>tax rate for vapor products; modifying taconite tax distributions and deposits; <br />
         		<a id="pl.277.16"></a><var>277.16</var>providing for local development projects; modifying public finance provisions; <br />
         		<a id="pl.277.17"></a><var>277.17</var>transferring approval authority from the Iron Range Resources and Rehabilitation <br />
         		<a id="pl.277.18"></a><var>277.18</var>Board to the commissioner of Iron Range resources and rehabilitation; <br />
         		<a id="pl.277.19"></a><var>277.19</var>requiring the commissioner of Iron Range resources and rehabilitation to seek <br />
         		<a id="pl.277.20"></a><var>277.20</var>a recommendation from the board in certain circumstances; providing for <br />
         		<a id="pl.277.21"></a><var>277.21</var>transfer of ownership, eligibility, certification, and notification requirements for <br />
         		<a id="pl.277.22"></a><var>277.22</var>enrollment of land in the Sustainable Forest Incentive Act; modifying the budget <br />
         		<a id="pl.277.23"></a><var>277.23</var>reserve; providing a new markets grant program; providing a tax time savings <br />
         		<a id="pl.277.24"></a><var>277.24</var>grant program; providing civil and criminal penalties for sales suppression <br />
         		<a id="pl.277.25"></a><var>277.25</var>devices; allocating additional amounts to the border city enterprise zones; making <br />
         		<a id="pl.277.26"></a><var>277.26</var>clarifying and conforming changes; removing obsolete language; requiring <br />
         		<a id="pl.277.27"></a><var>277.27</var>reports; appropriating money;amending Minnesota Statutes 2014, sections 13.51, <br />
         		<a id="pl.277.28"></a><var>277.28</var>subdivision 2; 15.38, subdivision 7; 69.021, subdivision 5; 116J.424; 136A.129, <br />
         		<a id="pl.277.29"></a><var>277.29</var>subdivision 3; 138.053; 216B.161, subdivision 1; 270.071, subdivisions 2, 7, 8, <br />
         		<a id="pl.277.30"></a><var>277.30</var>by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision; <br />
         		<a id="pl.277.31"></a><var>277.31</var>270.12, by adding a subdivision; 270.82, subdivision 1; 270A.03, subdivision <br />
         		<a id="pl.277.32"></a><var>277.32</var>5; 270B.14, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, <br />
         		<a id="pl.277.33"></a><var>277.33</var>subdivision 2; 270C.347, subdivision 1; 270C.35, subdivision 3, by adding <br />
         		<a id="pl.277.34"></a><var>277.34</var>a subdivision; 270C.38, subdivision 1; 270C.445, by adding a subdivision; <br />
         		<a id="pl.277.35"></a><var>277.35</var>270C.446, subdivision 5; 270C.72, subdivision 4; 270C.89, subdivision 1; <br />
         		<a id="pl.277.36"></a><var>277.36</var>271.06, subdivisions 2, 7; 271.08, subdivision 1; 271.21, subdivision 2; 272.02, <br />
         		<a id="pl.277.37"></a><var>277.37</var>subdivisions 9, 10, by adding subdivisions; 272.0211, subdivision 1; 272.025, <br />
         		<a id="pl.277.38"></a><var>277.38</var>subdivision 1; 272.029, subdivisions 2, 4, by adding a subdivision; 272.0295, <br />
         		<a id="pl.277.39"></a><var>277.39</var>subdivision 4; 272.115, subdivision 2; 272.162; 273.032; 273.061, subdivision <br />
         		<a id="pl.277.40"></a><var>277.40</var>7; 273.08; 273.121, by adding a subdivision; 273.124, subdivision 13; 273.13, <br />
         		<a id="pl.277.41"></a><var>277.41</var>subdivisions 22, 34; 273.1392; 273.1393; 273.33, subdivisions 1, 2; 273.371; <br />
         		<a id="pl.277.42"></a><var>277.42</var>273.372, subdivisions 1, 2, 4, by adding subdivisions; 274.01, subdivision 1; <br />
         		<a id="pl.277.43"></a><var>277.43</var>274.13, subdivision 1; 274.135, subdivision 3; 275.025, subdivisions 1, 2, <br />
         		<a id="pl.277.44"></a><var>277.44</var>4; 275.065, subdivisions 1, 3; 275.066; 275.07, subdivisions 1, 2; 275.08, <br />
         		<a id="pl.277.45"></a><var>277.45</var>subdivision 1b; 275.62, subdivision 2; 276.04, subdivision 2; 276.11, subdivision <br />
         		<a id="pl.277.46"></a><var>277.46</var>1; 276.111; 276A.01, subdivisions 8, 17; 278.01, subdivision 1; 278.12; 278.14, <br />
         		<a id="pl.277.47"></a><var>277.47</var>subdivision 1; 279.01, subdivisions 1, 2, 3; 279.03, subdivision 2; 279.37, <br />
         		<a id="pl.277.48"></a><var>277.48</var>subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261, subdivision 2; 282.38, <br />
         		<a id="pl.277.49"></a><var>277.49</var>subdivision 1; 287.2205; 289A.08, subdivisions 11, 16, by adding a subdivision; <br />
         		<a id="pl.277.50"></a><var>277.50</var>289A.09, subdivisions 1, 2; 289A.11, subdivision 1; 289A.12, subdivision <br />
         		<a id="pl.277.51"></a><var>277.51</var>14; 289A.18, subdivision 1, by adding a subdivision; 289A.20, subdivision <br />
         		<a id="pl.277.52"></a><var>277.52</var>2; 289A.31, subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, <br />
         		<a id="pl.277.53"></a><var>277.53</var>subdivision 6; 289A.50, subdivision 7; 289A.60, subdivision 28, by adding a <br />
         		<a id="pl.277.54"></a><var>277.54</var>subdivision; 290.01, subdivisions 7, 19a, 19b, 19c, 19d; 290.06, subdivision 22; <br />
         		<a id="pl.277.55"></a><var>277.55</var>290.067, subdivisions 1, 2b; 290.0671, subdivision 7; 290.0672, subdivision <br />
         		<a id="pl.277.56"></a><var>277.56</var>1; 290.0674, subdivision 2, by adding a subdivision; 290.0677, subdivision <br />
         		<a id="pl.277.57"></a><var>277.57</var>1a; 290.068, subdivision 2; 290.091, subdivisions 2, 3; 290.0921, subdivision <br />
         		<a id="pl.277.58"></a><var>277.58</var>3; 290.0922, subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1; <br />
         		<a id="pl.278.1"></a><var>278.1</var>290A.03, subdivision 13; 290A.19; 290C.01; 290C.02, subdivisions 1, 3, 6; <br />
         		<a id="pl.278.2"></a><var>278.2</var>290C.03; 290C.04; 290C.05; 290C.055; 290C.07; 290C.08, subdivision 1; <br />
         		<a id="pl.278.3"></a><var>278.3</var>290C.10; 290C.11; 290C.13, subdivision 6; 291.016, subdivisions 2, 3; 291.03, <br />
         		<a id="pl.278.4"></a><var>278.4</var>subdivisions 9, 11, by adding a subdivision; 291.031; 295.54, subdivision 2; <br />
         		<a id="pl.278.5"></a><var>278.5</var>295.55, subdivision 6; 296A.01, subdivisions 12, 33, 42, by adding subdivisions; <br />
         		<a id="pl.278.6"></a><var>278.6</var>296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08, <br />
         		<a id="pl.278.7"></a><var>278.7</var>subdivision 2; 296A.09, subdivisions 1, 3, 5, 6; 296A.15, subdivisions 1, 4; <br />
         		<a id="pl.278.8"></a><var>278.8</var>296A.17, subdivisions 1, 2, 3; 296A.18, subdivisions 1, 8; 296A.19, subdivision <br />
         		<a id="pl.278.9"></a><var>278.9</var>1; 296A.22, subdivision 9; 296A.26; 297A.61, subdivisions 3, 10; 297A.66, <br />
         		<a id="pl.278.10"></a><var>278.10</var>subdivisions 1, 2, 4, by adding a subdivision; 297A.67, subdivision 7a, by adding <br />
         		<a id="pl.278.11"></a><var>278.11</var>subdivisions; 297A.68, subdivision 9; 297A.70, subdivision 14; 297A.71, by <br />
         		<a id="pl.278.12"></a><var>278.12</var>adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.815, subdivision 3; <br />
         		<a id="pl.278.13"></a><var>278.13</var>297A.82, subdivisions 4, 4a; 297D.02; 297E.02, subdivisions 1, 3, 7; 297E.04, <br />
         		<a id="pl.278.14"></a><var>278.14</var>subdivision 1; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.01, <br />
         		<a id="pl.278.15"></a><var>278.15</var>subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by adding <br />
         		<a id="pl.278.16"></a><var>278.16</var>subdivisions; 297F.09, subdivision 1; 297F.23; 297G.09, subdivision 1; 297G.22; <br />
         		<a id="pl.278.17"></a><var>278.17</var>297H.04, subdivision 2; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10, <br />
         		<a id="pl.278.18"></a><var>278.18</var>subdivisions 1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2; <br />
         		<a id="pl.278.19"></a><var>278.19</var>298.001, subdivision 8; 298.01, subdivisions 3b, 4c; 298.22, subdivisions 1, 1a, <br />
         		<a id="pl.278.20"></a><var>278.20</var>5a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5, <br />
         		<a id="pl.278.21"></a><var>278.21</var>6; 298.223, subdivisions 1, 2; 298.227; 298.24, by adding a subdivision; 298.28, <br />
         		<a id="pl.278.22"></a><var>278.22</var>subdivisions 3, 5, 7a, 9d; 298.292, subdivision 2; 298.294; 298.296, subdivisions <br />
         		<a id="pl.278.23"></a><var>278.23</var>1, 2, 4; 298.2961, subdivisions 2, 4; 298.298; 298.46, subdivision 2; 349.12, by <br />
         		<a id="pl.278.24"></a><var>278.24</var>adding a subdivision; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32; <br />
         		<a id="pl.278.25"></a><var>278.25</var>412.301; 469.034, subdivision 2; 469.101, subdivision 1; 469.169, by adding a <br />
         		<a id="pl.278.26"></a><var>278.26</var>subdivision; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.319, <br />
         		<a id="pl.278.27"></a><var>278.27</var>subdivision 5; 473.39, by adding a subdivision; 473H.09; 475.58, subdivision <br />
         		<a id="pl.278.28"></a><var>278.28</var>3b; 475.60, subdivision 2; 477A.013, by adding a subdivision; 477A.017, <br />
         		<a id="pl.278.29"></a><var>278.29</var>subdivisions 2, 3; 477A.03, subdivision 2b; 477A.19, by adding subdivisions; <br />
         		<a id="pl.278.30"></a><var>278.30</var>559.202, subdivision 2; 609.5316, subdivision 3; Minnesota Statutes 2015 <br />
         		<a id="pl.278.31"></a><var>278.31</var>Supplement, sections 16A.152, subdivision 2; 289A.02, subdivision 7; 290.01, <br />
         		<a id="pl.278.32"></a><var>278.32</var>subdivisions 19, 31; 290.0671, subdivision 1; 290A.03, subdivision 15; 291.005, <br />
         		<a id="pl.278.33"></a><var>278.33</var>subdivision 1; 297E.02, subdivision 6; 477A.015; 477A.03, subdivision 2a; Laws <br />
         		<a id="pl.278.34"></a><var>278.34</var>1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws <br />
         		<a id="pl.278.35"></a><var>278.35</var>1988, chapter 645, section 3, as amended; Laws 1991, chapter 291, article 8, <br />
         		<a id="pl.278.36"></a><var>278.36</var>section 27, subdivisions 3, as amended, 4, as amended, 5, 6; Laws 1996, chapter <br />
         		<a id="pl.278.37"></a><var>278.37</var>471, article 2, section 29, subdivision 4, as amended; article 3, section 51; Laws <br />
         		<a id="pl.278.38"></a><var>278.38</var>1999, chapter 243, article 4, section 18, subdivision 1, as amended; Laws 2001, <br />
         		<a id="pl.278.39"></a><var>278.39</var>First Special Session chapter 5, article 3, section 86; Laws 2008, chapter 154, <br />
         		<a id="pl.278.40"></a><var>278.40</var>article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section 20; <br />
         		<a id="pl.278.41"></a><var>278.41</var>Laws 2009, chapter 88, article 2, section 46, subdivisions 1, as amended, 2, 3, as <br />
         		<a id="pl.278.42"></a><var>278.42</var>amended, 4, 5; article 5, section 17, as amended; Laws 2014, chapter 308, article <br />
         		<a id="pl.278.43"></a><var>278.43</var>1, section 14, subdivision 2; article 6, section 9; article 9, section 94; proposing <br />
         		<a id="pl.278.44"></a><var>278.44</var>coding for new law in Minnesota Statutes, chapters 103C; 116J; 216B; 270C; <br />
         		<a id="pl.278.45"></a><var>278.45</var>273; 290; 290B; 290C; 293; 477A; 609; repealing Minnesota Statutes 2014, <br />
         		<a id="pl.278.46"></a><var>278.46</var>sections 272.02, subdivision 23; 281.22; 290.067, subdivisions 2, 2a; 290C.02, <br />
         		<a id="pl.278.47"></a><var>278.47</var>subdivisions 5, 9; 290C.06; 297F.05, subdivision 1a; 477A.20; Minnesota Rules, <br />
         		<a id="pl.278.48"></a><var>278.48</var>parts 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3."<br />
         		
         <table>
            <col width="50px"></col>
            <col width="252px"></col>
            <col width="42px"></col>
            <col width="252px"></col>
            <tr>
               <td><a id="pl.279.1"></a><var>279.1</var><br />
                  		
               </td>
               <td colspan="3">We request the adoption of this report and repassage of the bill.<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.279.2"></a><var>279.2</var><br />
                  		
               </td>
               <td>House Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.279.3"></a><var>279.3</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.279.4"></a><var>279.4</var><br />
                  		
               </td>
               <td>Greg Davids<br />
                  		
               </td>
               <td></td>
               <td>Steve Drazkowski<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.279.5"></a><var>279.5</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.279.6"></a><var>279.6</var><br />
                  		
               </td>
               <td>Bob Barrett<br />
                  		
               </td>
               <td></td>
               <td>Chris Swedzinski<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.279.7"></a><var>279.7</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.279.8"></a><var>279.8</var><br />
                  		
               </td>
               <td>Gene Pelowski Jr.<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.279.9"></a><var>279.9</var><br />
                  		
               </td>
               <td>Senate Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.279.10"></a><var>279.10</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.279.11"></a><var>279.11</var><br />
                  		
               </td>
               <td>Rod Skoe<br />
                  		
               </td>
               <td></td>
               <td>Ann H. Rest<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.279.12"></a><var>279.12</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.279.13"></a><var>279.13</var><br />
                  		
               </td>
               <td>Lyle Koenen<br />
                  		
               </td>
               <td></td>
               <td>Kari Dziedzic<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.279.14"></a><var>279.14</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.279.15"></a><var>279.15</var><br />
                  		
               </td>
               <td>Paul E. Gazelka<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
         </table>
      </div>